UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): September 27, 2004
JONES LANG LASALLE INCORPORATED
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(Exact name of registrant as specified in its charter)
Maryland 001-13145 36-4150422
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(State or other juris- (Commission File (IRS Employer
diction of incorporation) Number) Identification
No.)
200 East Randolph Drive, Chicago, IL 60601
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (312) 782-5800
Not Applicable
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(Former name or former address, if changed since last report.)
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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
The Australian subsidiary of Jones Lang LaSalle Incorporated (the
"Company") has settled the litigation we previously disclosed that we were
pursuing against a consulting firm with respect to a property management
accounting system for our Australian business that we had abandoned.
Under the settlement agreement, which was executed on September 27,
2004, Capgemini Australia Pty Limited ("Capgemini") has agreed to pay Jones
Lang LaSalle Australia Pty Limited a total of AUS$9,800,000 (US$7,050,000)
in cash, in installments as follows: (1) AUS$6,000,000 (US$4,300,000) on
or before October 22, 2004, (2) AUS$2,000,000 (US$1,450,000) on or before
March 31, 2005, (3) AUS$1,000,000 (US$725,000) on or before September 30,
2005 and (4) AUS$800,000 (US$575,000) on or before December 31, 2005. In
addition to the foregoing cash payments, Capgemini has agreed to provide up
to AUS$200,000 (US$140,000) of consulting services in Asia during the
period ending September 27, 2006.
In connection with the agreement, each of parties has released the
other from further liabilities with respect to the underlying dispute and
has agreed to certain other terms typical for a settlement agreement of
this kind.
As a result of the settlement, we intend to record a recovery of non-
recurring expenses.
ITEM 2.05 COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES
In 2003 the Company established a reserve for excess lease space of
euro 3.5 million (US$4.4 million). Through September, 2004, euro 0.5
million (US$0.6 million) of this reserve had been utilized against lease
payments for this space. On September 29, 2004, the German subsidiary of
the Company entered into a modified lease agreement with more favorable
terms for this space and now plans to take occupation of approximately two
thirds of this space in the first quarter of 2005. As a result of this
change in circumstances, a net amount of euro 2 million (US$2.4 million) of
this reserve is no longer required and will be reversed to non-recurring
expenses in the income statement in the third quarter of 2004. The lease
for the space that the German subsidiary currently occupies runs through
January, 2007 and is considered excess given the Company's decision to
occupy space in the new building. An expense of euro 2.5 million (US$3
million) will be taken in Q3 for this excess space. The net charge to non-
recurring expense in the third quarter will be euro 0.5 million (US$0.6
million).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: September 30, 2004 JONES LANG LASALLE INCORPORATED
By: /s/ Lauralee E. Martin
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Name: Lauralee E. Martin
Title: Executive Vice President and
Chief Financial Officer
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