01—Abstract
Summary
Summary of the 10-K/A filed September 23, 2014. Cited figures are marked; the original filing is the authoritative source.
This filing is an amendment to CBRE Group, Inc.'s 2013 Annual Report on Form 10-K, primarily to disclose activities related to Iran as mandated by the Iran Threat Reduction and Syria Human Rights Act of 2012.
The amendment specifies that a UK subsidiary of CBRE performed services for Melli Bank PLC, a UK-incorporated bank on the Specially Designated Nationals and Blocked Persons (SDN) List. These services included assessing refurbishment costs for two London properties, generating approximately £7,500 in gross revenue and £3,375 in net profit.
Additionally, a contract was entered into for tax rate advice, but no services were performed or fees received under this contract before the company placed a hold on further activity upon discovering Melli Bank PLC's SDN status. CBRE states it does not intend to engage in further Iran-related activities.
02—Key points
Key Highlights
- Amendment to 2013 10-K filing focused on Iran-related disclosure requirements.
- Disclosure of services performed for Melli Bank PLC, a UK bank on the US SDN List.
- Gross revenue of £7,500 and net profit of £3,375 generated from assessing properties for Melli Bank PLC.
- A subsequent contract with Melli Bank PLC was entered but no services were rendered or fees received before activity was halted.
- CBRE Group, Inc. has stated no intention to engage in future Iran-related activities.
- The company is categorized as a large accelerated filer.
- The filing includes updated Sarbanes-Oxley certifications.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-K/AFY2013filed September 23, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $7.18B$6.51B | +10.3% |
| Operating Expenses | $6.58B$5.93B | +10.9% |
| Operating Income | $616.13M$585.08M | +5.3% |
| Interest Expense | $135.08M$175.07M | −22.8% |
| Net Income | $316.54M$315.56M | +0.3% |
| EPS (Basic) | $0.96$0.98 | −2.0% |
| EPS (Diluted) | $0.95$0.97 | −2.1% |
| Shares Outstanding (Basic) | 328.11M322.32M | +1.8% |
| Shares Outstanding (Diluted) | 331.76M327.04M | +1.4% |
05—Questions
Frequently Asked Questions
What is the primary purpose of this 10-K Amendment?
This amendment (10-K/A) to CBRE Group, Inc.'s 2013 Annual Report is filed to comply with Section 13(r) of the Securities Exchange Act of 1934, which requires disclosure of certain specified activities related to Iran. Specifically, it details transactions with Melli Bank PLC, which is on the Specially Designated Nationals and Blocked Persons (SDN) List.
Did CBRE Group, Inc. have significant business dealings with Melli Bank PLC?
CBRE's UK subsidiary provided property assessment services for two London properties leased by Melli Bank PLC, generating a gross revenue of £7,500 and a net profit of approximately £3,375. A subsequent contract for tax advice was signed but no services were performed or fees paid before CBRE halted all activity related to Melli Bank PLC upon discovering its SDN status.
Does CBRE Group, Inc. plan to continue any business related to Iran?
No, CBRE Group, Inc. explicitly states in the filing that they do not otherwise intend to enter into any Iran-related activity. The company placed a hold on all activity related to Melli Bank PLC and has committed to not engaging in future Iran-related business.
What is the financial impact of these disclosed activities?
The financial impact is minimal. The gross revenue from the property assessment services was £7,500, and the net profit was approximately £3,375. No revenue or profit was realized from the subsequent contract as no services were performed. The company has also confirmed it is not pursuing further Iran-related business.
06—Continue