Company: JLL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001037976-25-000071
Chunk: 120

Company: JONES LANG LASALLE INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 120
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 a percentage of revenue production. Such forgiven amounts are reflected in Compensation and benefits expense. Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures.

Equity earnings/losses (Investment Management and Proptech Investments) primarily reflects valuation changes on investments reported at fair value, which are increased or decreased each reporting period as fair value changes. Where the measurement alternative has been elected, our investment is increased or decreased upon observable price changes. Such activity is excluded as the amounts are generally non‑cash in nature and not indicative of core operating performance.

31

Note: Equity earnings/losses for segments other than Investment Management represent the results of unconsolidated operating ventures (not investments), and therefore, the amounts are included in Adjusted EBITDA on both a segment and consolidated basis.

Credit losses on convertible note investments reflects credit impairments associated with pre-equity convertible note investments in early-stage proptech enterprises. Such losses are similar to the equity investment-related losses included in equity earnings/losses for Proptech Investments and are therefore consistently excluded from adjusted measures.

Reconciliation of Non-GAAP Financial Measures

Below is a reconciliation of Net income attributable to common shareholders to Adjusted EBITDA.

Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Net income attributable to common shareholders$222.8 155.1 $390.4 305.6 Add:Interest expense, net of interest income29.2 38.1 89.1 110.3 Income tax provision52.6 37.4 93.3 73.8 Depreciation and amortization(1)56.7 64.5 194.1 185.9 Adjustments:Restructuring and acquisition charges11.7 (8.8)52.7 4.4 Net non-cash MSR and mortgage banking derivative activity0.2 5.1 17.3 25.9 Interest on employee loans, net of forgiveness(1.5)(1.8)(5.1)(4.1)Equity (earnings) losses - Investment Management and Proptech Investments(1)(26.6)2.2 29.1 23.4 Credit losses on convertible note investments2.