Company: JLL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001037976-25-000025
Chunk: 78

Company: JONES LANG LASALLE INC
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 78
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 the first quarter of 2025 and 2024 ($ in millions). Refer to segment operating results for further detail.

Operating Expenses

Consolidated operating expenses were $5.6 billion for the first quarter, up 14% from the same period in 2024. Gross contract costs were $3.9 billion, up 14% from the prior-year quarter, attributable to growth from businesses with higher client pass-through expenses such as Workplace Management and Property Management, within Real Estate Management Services. Platform operating expenses were $1.7 billion for the first quarter, an 11% increase from the prior-year quarter, largely due to revenue-related expense growth and incremental investments in the platform (notably technology and artificial intelligence capabilities) across segments to drive future business growth.

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For the first quarter of 2025, Restructuring and acquisition charges increased primarily due to the year-over-year change in non-cash charges/benefit associated with expected achievement of acquisition-related earn-outs. Refer to the following table for detail on Restructuring and acquisition charges.

Three Months Ended March 31,(in millions)20252024Severance and other employment-related charges$7.4 4.5 Restructuring, pre-acquisition and post-acquisition charges8.4 7.7 Fair value adjustments that resulted in a net increase (decrease) to earn-out liabilities from prior-period acquisition activity3.9 (10.5)Restructuring and acquisition charges$19.7 1.7 

Interest Expense

Interest expense, net of interest income, for the three months ended March 31, 2025 was $24.6 million, compared with $30.5 million in the prior-year period. Lower expense resulted primarily from a lower effective interest rate and also lower average borrowings for the current quarter. 

Equity (Losses) Earnings

The following details Equity (losses) earnings by relevant segment. In the current period, equity losses were largely attributable to valuation declines of investments within Software and Technology Solutions. Refer to the segment discussions for additional details.

Three Months Ended March 31,(in millions)20252024Investment Management$(6.1)(3.9)Software and Technology Solutions(21.5)(1.0)Other2.0 1.2 Equity losses$(25.6)(3.7)

Income Taxes

The Income tax provision was $14.0 million for the three months ended March 31,