Increase in contract assets

[Table of Contents](#i36695dc5143241f795c32e47bf5f4b3d_7)CBRE GROUP, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)Contract Assets and LiabilitiesWe had contract assets totaling $474.4 million ($338.7 million of which was current) and $471.8 million ($318.2 million of which was current) as of December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, our contract assets decreased by $2.5 million, primarily due to a decrease in contract assets in our advisory business.We had contract liabilities totaling $288.9 million ($280.7 million of which was current) and $164.1 million ($162.0 million of which was current) as of December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, we recognized revenue of $152.0 million that was included in the contract liability balance at December 31, 2020.Contract CostsWithin our Global Workplace Solutions segment, we incur transition costs to fulfill contracts prior to services being rendered. We capitalized $84.9 million, $64.2 million and $69.3 million, respectively, of transition costs during the years ended December 31, 2021, 2020 and 2019. We recorded amortization of transition costs of $40.3 million, $46.9 million and $32.3 million, respectively, during the years ended December 31, 2021, 2020 and 2019.19.SegmentsWe organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments. Effective January 1, 2021, we realigned our organizational structure and performance measure to how our chief operating decision maker (CODM) views the company. This includes a “Corporate, other and elimination” component and a segment measurement of profit and loss referred to as segment operating profit. In addition, transaction services was fully moved under the Advisory Services segment and project management was fully moved under the Global Workplace Solutions segment. Previously transaction services and project management were split between the Global Workplace Solutions segment and the Advisory Services segment. Our Corporate segment primarily consists of corporate headquarters costs for executive officers and certain other central functions. We track our strategic non-core non-controlling equity investments in “other” which is considered an operating segment and reported together with Corporate as it does not meet the aggregation criteria for presentation as a separate reportable segment. These activities are not allocated to the other business segments. Corporate and other also includes eliminations related to inter-segment revenue. Segment operating profit (SOP) is the measure reported to the CODM for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of amount attributable to non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense (reversal) to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, costs associated with workforce optimization, costs associated with our reorganization, transformation initiatives and integration and other costs related to acquisitions. This metric excludes the impact of corporate overhead as these costs are now reported under Corporate and other. We changed the definition of SOP to include net income (loss) attributable to non-controlling interest to provide a more meaningful view of the segment’s performance and related margins and to conform to the CODM’s view of the business segments.Prior period segment results for all of our reportable segments have been recast to conform to the above changes.111
