Business Segments

9 Months Ended

Sep. 30, 2010

Business Segments [Abstract]

Business Segments

(4) Business Segments

We manage and report our operations as four business segments:

The three geographic regions of Real Estate Services (“RES”):

(i) Americas,

(ii) Europe, Middle East and Africa (“EMEA”),

(iii) Asia Pacific; and

(iv) Investment Management, which offers investment management services on a global basis.

Each geographic region offers our full range of Real Estate Services, including agency leasing and tenant representation, capital markets and hotels, property management, facilities management, project and development management, energy management and sustainability, construction management, and advisory, consulting and valuation services.

The Investment Management segment provides investment management services to institutional investors and high-net-worth individuals.

Operating income (loss) represents total revenue less direct and indirect allocable expenses. We allocate all expenses, other than interest and income taxes, as nearly all expenses incurred benefit one or more of the segments. Allocated expenses primarily consist of corporate global overhead. We allocate these corporate global overhead expenses to the business segments based on the budgeted operating expenses of each segment.

For segment reporting we show equity earnings (losses) from real estate ventures within our revenue line, since it is an integral part of our Investment Management segment. Our measure of segment reporting results also excludes restructuring charges and certain acquisition related costs. The Chief Operating Decision Maker of Jones Lang LaSalle measures the segment results with equity in earnings (losses) from real estate ventures, and without restructuring charges. We define the Chief Operating Decision Maker collectively as our Global Executive Committee, which is comprised of our Global Chief Executive Officer, Global Chief Operating and Financial Officer and the Chief Executive Officers of each of our reporting segments.

Summarized unaudited financial information by business segment for the three and nine months ended September 30, 2011 and 2010 is as follows ($ in thousands):

	Three Months Ended September 30, 2011		Three Months Ended September 30, 2010			Nine Months Ended September 30, 2011			Nine Months Ended September 30, 2010
Real Estate Services
Americas
Segment revenue:
Revenue	$	379,273		309,063			1,013,128			832,748
Equity income		34		40			2,666			280
		379,307		309,103			1,015,794			833,028
Operating expenses:
Compensation, operating and administrative expenses		332,831		263,140			908,736			727,806
Depreciation and amortization		9,325		8,697			28,793			26,415
Operating income	$	37,151		37,266			78,265			78,807
EMEA
Segment revenue:
Revenue	$	247,298		169,275			633,720			491,442
Equity income (losses)		4		(12	)		(306	)		(45	)
		247,302		169,263			633,414			491,397
Operating expenses:
Compensation, operating and administrative expenses		236,855		161,858			619,136			478,672
Depreciation and amortization		9,824		4,222			20,326			13,249
Operating income (loss)	$	623		3,183			(6,048	)		(524	)
Asia Pacific
Segment revenue:
Revenue	$	200,536		164,968			580,362			455,317
Equity income		56		-			151			-
		200,592		164,968			580,513			455,317
Operating expenses:
Compensation, operating and administrative expenses		183,563		153,981			530,311			421,573
Depreciation and amortization		3,128		3,616			9,202			9,948
Operating income	$	13,901		7,371			41,000			23,796
Investment Management
Segment revenue:
Revenue	$	76,103		65,073			209,158			189,854
Equity income (losses)		420		(2,042	)		171			(11,172	)
		76,523		63,031			209,329			178,682
Operating expenses:
Compensation, operating and administrative expenses		56,741		49,422			163,555			145,633
Depreciation and amortization		558		1,208			2,179			3,377
Operating income	$	19,224		12,401			43,595			29,672
Segment Reconciling Items:
Total segment revenue	$	903,724		706,365			2,439,050			1,958,424
Reclassification of equity income (losses)		514		(2,014	)		2,682			(10,937	)
Total revenue		903,210		708,379			2,436,368			1,969,361
Total segment operating expenses	$	832,825		646,144			2,282,238			1,826,673
Restructuring and acquisition charges		16,031		385			22,144			5,501
Operating income	$	54,354		61,850			131,986			137,187