Purchases/ Additions

[Table of Contents](#i36695dc5143241f795c32e47bf5f4b3d_7)CBRE GROUP, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)As of December 31, 2021 and 2020, investments in unconsolidated subsidiaries at fair value using NAV were $152.7 million and $66.3 million, respectively. These investments fall under practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded from the tables above.The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Investment in Unconsolidated Subsidiaries |  | Other liabilities |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Balance as of December 31, 2020 | $ | 50,000  |  |  | $ | —  |  |
| Transfer in | 5,174  |  |  | —  |  |
| Net change in fair value | 36,432  |  |  | 10,700  |  |
| Purchases/ Additions | 315,084  |  |  | —  |  |
| Balance as of December 31, 2021 | $ | 406,690  |  |  | $ | 10,700  |  |

Net change in fair value, included in the table above, is reported in Net income as follows:

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| Category of Assets/Liabilities using Unobservable Inputs |  | Consolidated Statements of Operations |
| Investments in unconsolidated subsidiaries |  | Equity income from unconsolidated subsidiaries |
| Other liabilities |  | Other income |

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Valuation Technique |  | Unobservable Input |  | Range |
| Investment in unconsolidated subsidiaries | Discounted cash flow |  | Discount rate |  | 14% - 26% |
|  |  |  |  |  |  |
|  | Monte Carlo |  | Volatility |  | 70  | % |
|  |  |  | Risk free interest rate |  | 1.4  | % |
|  |  |  |  |  |  |
| Other liabilities | Discounted cash flow |  | Discount rate |  | 25.5  | % |

There were no significant non-recurring fair value measurements recorded during the year ended December 31, 2021. The following non-recurring fair value measurements were recorded for the year ended December 31, 2020 (dollars in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Net Carrying Value as of December 31, 2020 |  | Fair Value Measured and Recorded Using |  | Total Impairment Charges for the Year Ended December 31, 2020 |
|  |  | Level 1 |  | Level 2 |  | Level 3 |  |
| Property and equipment | $ | 12,870  |  |  | $ | —  |  |  | $ | 12,870  |  |  | $ | —  |  |  | $ | 29,168  |  |
| Goodwill | 443,305  |  |  | —  |  |  | —  |  |  | 443,305  |  |  | 25,000  |  |
| Other intangible assets | 12,562  |  |  | —  |  |  | —  |  |  | 12,562  |  |  | 34,508  |  |
| Total | $ | 468,737  |  |  | $ | —  |  |  | $ | 12,870  |  |  | $ | 455,867  |  |  | $ | 88,676  |  |

During the year ended December 31, 2020, we recorded $50.2 million of non-cash asset impairment charges in our Global Workplace Solutions segment; a non-cash goodwill impairment charge of $25.0 million and certain non-cash asset impairment charges of $13.5 million in our Real Estate Investments segment. Primarily as a result of the recent global economic disruption and uncertainty due to Covid-19, we deemed there to be triggering events during 2020 that required testing of goodwill and certain assets for impairment. Based on these events, we recorded the aforementioned non-cash impairment charges, which were primarily driven by lower anticipated cash flows in certain businesses directly resulting from a downturn in forecasts as well as increased forecast risk due to Covid-19 and changes in our business going forward.87
