|JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997|
LA SALLE PARTNERS LIMITED PARTNERSHIP AND SUBSIDIARIES
LA SALLE PARTNERS MANAGEMENT LIMITED PARTNERSHIP AND SUBSIDIARIES
NOTES TO COMBINED FINANCIAL STATEMENTS--(CONTINUED)
Under the terms of the Asset Purchase Agreement, the Partnerships have
agreed to provide certain administrative and financial services, at cost,
beginning January 1997 and may provide certain financial assistance if
For financial reporting purposes, the Partnerships have not treated the
transaction as a divestiture. As such, the net assets sold as part of the
transaction aggregating $68 at December 31, 1996 have been included in other
assets in the accompanying Combined Balance Sheets. The results of operations
of the construction management business will be accounted for similar to the
equity method of accounting. As such, principal and interest to be received
under the note will be treated as a reduction of such net assets and as a
reserve, if necessary, for any anticipated financial exposure under the terms
of the Asset Purchase Agreement with the remainder recognized as income.
The revenue related to the construction business sold for the years ended
December 31, 1994, 1995 and 1996 totaled $4,858, $4,977 and $5,678,
respectively. For financial statement presentation purposes these revenues
have been presented net of related expenses totaling $3,574, $3,619 and
$4,407, respectively, in the accompanying Combined Statements of Earnings.
The Partnerships pay subcontractors for expenses incurred on behalf of
construction management clients for which they are reimbursed monthly.
Included in trade receivables in the accompanying Combined Balance Sheets are
amounts due from clients totaling $15,281 and $21,757, respectively, related
to construction fee and reimbursable receivables at December 31, 1995 and
1996, respectively. Corresponding liabilities related to amounts payable to
subcontractors are included in accounts payable and accrued liabilities in the
accompanying Combined Balance Sheets totaling $17,926 and $20,109 at December
31, 1995 and 1996, respectively. In accordance with the Asset Purchase
Agreement, any trade receivables, net of related payables to subcontractors,
which are uncollected at April 30, 1997 will be reimbursed to the Partnerships
by the purchaser.
(5) BUSINESS SEGMENTS
The Partnerships' operations have been classified into three business
segments: Management Services, Corporate and Financial Services and Investment
Management. The Management Services segment provides three primary service
capabilities: (i) property management and leasing for property owners, (ii)
facility management for properties occupied by corporate owners and users; and
(iii) development management for both investors and real estate users seeking
to develop new buildings or renovate existing facilities. The Corporate and
Financial Services segment provides transaction and advisory services through
three primary service capabilities, including: (i) tenant representation for
corporations and professional services firms; (ii) investment banking services
to address the financing, acquisition and disposition needs of real estate
owners; and (iii) land acquisition and development services for owners, users
and developers of land. The Investment Management segment provides real estate
investment management services to institutional investors, corporations and
high net worth individuals.
Total revenue by industry segment includes revenue derived from services
provided to other segments. Operating income represent total revenue less
direct and indirect allocable expenses. The Partnerships allocate all
expenses, other than interest and income taxes, as substantially all expenses
incurred benefit one or more of the segments. Identifiable assets by segment
are those assets that are used by or are a result of each segments' business.
Corporate assets are principally cash and cash equivalents, office furniture
and leasehold improvements.
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