4. BUSINESS SEGMENTS We manage and report our operations as four business segments: The three geographic regions of RES including: (1) Americas, (2) Europe, Middle East and Africa ("EMEA"), and (3) Asia Pacific; and (4) LaSalle, which offers investment management services on a global basis. Each geographic region offers our full range of real estate services, including agency leasing and tenant representation, capital markets, property and facility management, project and development management, energy management and sustainability, construction management, and advisory, consulting and valuation services. LaSalle provides investment management services to institutional investors and high-net-worth individuals. Operating income represents total revenue less direct and allocated indirect expenses. We allocate all indirect expenses to our segments, other than interest and income taxes, as nearly all expenses incurred benefit one or more of the segments. Allocated expenses primarily consist of corporate global overhead, which we allocate to the business segments based on the budgeted operating expenses of each segment. For segment reporting, (a) gross contract costs and (b) net non-cash MSR and mortgage banking derivative activity are both excluded from revenue in determining "fee revenue". Gross contract costs are excluded from operating expenses in determining "fee-based operating expenses." Excluding these costs from revenue and expenses results in a net presentation which we believe more accurately reflects how we manage our expense base, operating margins, and performance. Refer to Results of Operations, included in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, for a full description of gross contract costs. In addition, our measure of segment results excludes Restructuring and acquisition charges. The Chief Operating Decision Maker of JLL measures and evaluates the segment results excluding (a) gross contract costs, (b) net non-cash MSR and mortgage banking derivative activity, and (c) Restructuring and acquisition charges. As of June 30, 2019 , we define the Chief Operating Decision Maker collectively as our Global Executive Board, which comprises the following:  Global Chief Executive Officer  Chief Executive Officers of each of our four business segments  Global Chief Financial Officer  Global Chief Executive Officer of Corporate Solutions  Global Chief Administrative Officer  Global Chief Executive Officer of Capital Markets Summarized financial information by business segment is as follows. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2019 2018 2019 2018 Americas - Real Estate Services Leasing $ 491.8 422.9 $ 881.6 727.4 Capital Markets 129.8 117.8 229.9 228.8 Property &amp; Facility Management 1,370.9 1,258.4 2,732.9 2,441.9 Project &amp; Development Services 376.8 274.5 685.5 544.1 Advisory, Consulting and Other 94.3 78.9 183.8 151.3 Revenue 2,463.6 2,152.5 4,713.7 4,093.5 Reimbursements (1,403.1 ) (1,226.4 ) (2,754.5 ) (2,408.1 ) Revenue before reimbursements 1,060.5 926.1 1,959.2 1,685.4 Gross contract costs (191.8 ) (156.6 ) (379.5 ) (289.7 ) Net non-cash MSR and mortgage banking derivative activity (4.8 ) (1.3 ) (4.7 ) (4.0 ) Fee revenue 863.9 768.2 1,575.0 1,391.7 Operating expenses, excluding reimbursed expenses: Compensation, operating and administrative expenses 913.7 796.9 1,724.5 1,485.6 Depreciation and amortization 26.3 28.3 53.6 52.6 Segment operating expenses, excluding reimbursed expenses 940.0 825.2 1,778.1 1,538.2 Gross contract costs (191.8 ) (156.6 ) (379.5 ) (289.7 ) Fee-based segment operating expenses 748.2 668.6 1,398.6 1,248.5 Segment operating income $ 120.5 100.9 $ 181.1 147.2 Equity earnings 0.4 0.4 0.1 0.5 Segment income $ 120.9 101.3 $ 181.2 147.7 EMEA - Real Estate Services Leasing $ 65.9 72.9 $ 118.1 131.8 Capital Markets 78.5 89.9 142.5 179.2 Property &amp; Facility Management 380.6 392.3 749.9 742.6 Project &amp; Development Services 219.2 220.8 399.7 443.4 Advisory, Consulting and Other 74.1 70.7 131.5 133.2 Revenue 818.3 846.6 1,541.7 1,630.2 Reimbursements (153.7 ) (153.0 ) (318.3 ) (309.0 ) Revenue before reimbursements 664.6 693.6 1,223.4 1,321.2 Gross contract costs (284.7 ) (305.3 ) (527.4 ) (582.5 ) Fee revenue 379.9 388.3 696.0 738.7 Operating expenses, excluding reimbursed expenses: Compensation, operating and administrative expenses 654.6 683.5 1,231.5 1,319.7 Depreciation and amortization 11.3 11.5 22.6 22.9 Segment operating expenses, excluding reimbursed expenses 665.9 695.0 1,254.1 1,342.6 Gross contract costs (284.7 ) (305.3 ) (527.4 ) (582.5 ) Fee-based segment operating expenses 381.2 389.7 726.7 760.1 Segment operating loss $ (1.3 ) (1.4 ) $ (30.7 ) (21.4 ) Equity loss (1.1 )  (1.0 )  Segment loss $ (2.4 ) (1.4 ) $ (31.7 ) (21.4 ) Continued: Summarized financial information by business segment is as follows. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2019 2018 2019 2018 Asia Pacific - Real Estate Services Leasing $ 66.2 58.1 $ 102.1 95.9 Capital Markets 48.2 50.3 77.6 82.7 Property &amp; Facility Management 553.4 541.6 1,091.2 1,061.4 Project &amp; Development Services 137.3 114.1 248.2 201.1 Advisory, Consulting and Other 50.1 48.8 84.8 83.1 Revenue 855.2 812.9 1,603.9 1,524.2 Reimbursements (359.6 ) (356.2 ) (700.7 ) (677.8 ) Revenue before reimbursements 495.6 456.7 903.2 846.4 Gross contract costs (232.7 ) (205.4 ) (442.1 ) (400.7 ) Fee revenue 262.9 251.3 461.1 445.7 Operating expenses, excluding reimbursed expenses: Compensation, operating and administrative expenses 462.6 427.5 863.1 812.5 Depreciation and amortization 6.4 5.8 12.8 11.4 Segment operating expenses, excluding reimbursed expenses 469.0 433.3 875.9 823.9 Gross contract costs (232.7 ) (205.4 ) (442.1 ) (400.7 ) Fee-based segment operating expenses 236.3 227.9 433.8 423.2 Segment operating income $ 26.6 23.4 $ 27.3 22.5 Equity earnings 0.4 0.7 0.7 1.0 Segment income $ 27.0 24.1 $ 28.0 23.5 LaSalle Advisory fees $ 79.5 67.1 $ 157.1 137.0 Transaction fees &amp; other 16.3 6.7 29.5 23.4 Incentive fees 33.6 17.9 41.2 50.6 Revenue 129.4 91.7 227.8 211.0 Reimbursements (1.9 ) (4.8 ) (3.8 ) (9.6 ) Revenue before reimbursements 127.5 86.9 224.0 201.4 Gross contract costs (4.2 ) (1.2 ) (7.0 ) (2.5 ) Fee revenue 123.3 85.7 217.0 198.9 Operating expenses, excluding reimbursed expenses: Compensation, operating and administrative expenses 96.0 70.4 178.9 155.0 Depreciation and amortization 1.5 0.7 3.0 1.5 Segment operating expenses, excluding reimbursed expenses 97.5 71.1 181.9 156.5 Gross contract costs (4.2 ) (1.2 ) (7.0 ) (2.5 ) Fee-based segment operating expenses 93.3 69.9 174.9 154.0 Segment operating income $ 30.0 15.8 $ 42.1 44.9 Equity earnings 10.5 9.1 15.4 22.3 Segment income $ 40.5 24.9 $ 57.5 67.2 Three Months Ended June 30, Six Months Ended June 30, (in millions) 2019 2018 2019 2018 Segment Reconciling Items Fee revenue $ 1,630.0 1,493.5 $ 2,949.1 2,775.0 Gross contract costs 713.4 668.5 1,356.0 1,275.4 Net non-cash MSR and mortgage banking derivative activity 4.8 1.3 4.7 4.0 Revenue before reimbursements 2,348.2 2,163.3 4,309.8 4,054.4 Reimbursements 1,918.3 1,740.4 3,777.3 3,404.5 Revenue $ 4,266.5 3,903.7 $ 8,087.1 7,458.9 Total segment operating expenses, excluding reimbursed expenses &amp; before restructuring and acquisition charges $ 2,172.4 2,024.6 $ 4,090.0 3,861.2 Reimbursed expenses 1,918.3 1,740.4 3,777.3 3,404.5 Total segment operating expenses before restructuring and acquisition charges $ 4,090.7 3,765.0 $ 7,867.3 7,265.7 Operating income before restructuring and acquisition charges $ 175.8 138.7 $ 219.8 193.2 Restructuring and acquisition charges (credits) 25.7 (11.1 ) 44.3 (10.4 ) Operating income $ 150.1 149.8 $ 175.5 203.6