Segment Disclosure

9 Months Ended

Sep. 30, 2011

Segment Disclosure [Abstract]

SEGMENT DISCLOSURE

9. SEGMENT DISCLOSURE

Management has determined the reportable segments identified below according to the types of services offered and the manner in which operations and decisions are made. We operate in the following reportable segments:

Management Services — Management Services provides property management and related services for owners of investment properties and facilities management services for corporate owners and occupiers.

Transaction Services — Transaction Services advises buyers, sellers, landlords and tenants on the sale, leasing, financing and valuation of commercial property and includes our national accounts group and national affiliate program operations.

Investment Management — Investment Management includes related party transaction services for acquisition, financing, disposition and asset management services with respect to our REIT and dealer-manager services by our securities broker-dealer, which facilitates capital raising transactions for our REIT.

We also have certain corporate-level activities including legal administration, accounting, finance, human resources and management information systems which are not considered separate operating segments.

As a result of reclassifying Daymark to discontinued operations in the second quarter of 2011, our segment disclosure no longer includes a Daymark segment as the entire Daymark segment (which includes Alesco operations) is included in discontinued operations. In addition, Daymark historically provided some Investment Management services. Accordingly, all revenues and expenses related to our Investment Management segment that were provided by Daymark are also included in discontinued operations.

We evaluate the performance of our segments based upon operating (loss) income. Operating (loss) income is defined as operating revenue less compensation and general and administrative costs and excludes other rental related, rental expense, interest expense, depreciation and amortization and certain other operating and non-operating expenses. The accounting policies of the reportable segments are the same as those described in our summary of significant accounting policies (See Note 1).

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands)	2011			2010			2011			2010
Management Services
Revenue	$	57,110		$	65,351		$	174,068		$	207,909
Compensation costs		9,631			8,260			28,503			27,569
Transaction commissions and related costs		2,751			3,625			9,376			14,020
Reimbursable salaries, wages and benefits		38,392			45,975			116,235			145,354
General and administrative		2,363			2,280			8,312			7,070
Provision for doubtful accounts		191			482			1,521			1,271
Segment operating income		3,782			4,729			10,121			12,625
Transaction Services
Revenue		68,322			59,907			191,588			156,824
Compensation costs		13,702			13,094			44,092			35,270
Transaction commissions and related costs		43,150			39,927			123,605			102,325
General and administrative		10,244			8,752			30,934			26,267
Provision for doubtful accounts		547			145			2,515			1,173
Segment operating income (loss)		679			(2,011	)		(9,558	)		(8,211	)
Investment Management
Revenue		3,260			3,763			13,249			7,656
Compensation costs		1,894			2,436			6,058			7,567
Transaction commissions and related costs		1,023			795			2,778			2,145
General and administrative		1,640			1,480			5,218			4,208
Provision for doubtful accounts		(1	)		—			(15	)		—
Segment operating loss		(1,296	)		(948	)		(790	)		(6,264	)
Reconciliation to net income (loss) attributable to Grubb & Ellis Company:
Total segment operating income (loss)		3,165			1,770			(227	)		(1,850	)
Non-segment:
Corporate overhead (compensation, general and administrative costs)		(4,861	)		(7,723	)		(17,251	)		(23,448	)
Stock based compensation		(775	)		(1,629	)		(3,153	)		(7,427	)
Severance, retention and related charges		(6,911	)		(949	)		(9,466	)		(3,717	)
Depreciation and amortization		(2,026	)		(1,660	)		(6,088	)		(4,974	)
Interest		(2,372	)		(758	)		(4,060	)		(1,262	)
Other income (expense)		43			262			180			(11	)
Loss from continuing operations before income tax benefit (provision)		(13,737	)		(10,687	)		(40,065	)		(42,689	)
Income tax benefit (provision)		4,138			(180	)		4,161			(398	)
Loss from continuing operations		(9,599	)		(10,867	)		(35,904	)		(43,087	)
Loss from discontinued operations — net of taxes		(980	)		(4,449	)		(8,076	)		(15,476	)
Gain on disposal of discontinued operations — net of taxes		15,371			—			15,371			—
Net income (loss)		4,792			(15,316	)		(28,609	)		(58,563	)
Net loss attributable to noncontrolling interests		(198	)		(511	)		(977	)		(2,518	)
Net income (loss) attributable to Grubb & Ellis Company	$	4,990		$	(14,805	)	$	(27,632	)	$	(56,045	)