Operating Segments

6 Months Ended

Jun. 30, 2011

Operating Segments [Abstract]

Operating Segments

Note 10 — Operating Segments

Forrester is organized into three client groups with each client group responsible for writing relevant research for the roles within the client organization on a worldwide basis. The three client groups, which are considered operating segments, are: Information Technology (“IT”), Technology Industry (“TI”), and Marketing and Strategy (“M&S”). All of the client groups generate revenues through sales of research and advisory and other service offerings targeted at specific roles within their targeted clients. Each of the client groups consists of research personnel focused primarily on issues relevant to particular roles and to the day-to-day responsibilities of persons within the roles. Amounts included in the “Events” segment relate to the operations of the events production department. Revenue reported in the Events segment consists primarily of sponsorships and event tickets to Forrester events.

Forrester evaluates reportable segment performance and allocates resources based on direct margin. Direct margin, as presented below, is defined as operating income excluding sales expenses, certain marketing and fulfillment expenses, stock-based compensation expense, general and administrative expenses, depreciation expense, and amortization of intangibles. The accounting policies used by the reportable segments are the same as those used in the consolidated financial statements.

Forrester does not identify or allocate assets, including capital expenditures, by operating segment. Accordingly, assets are not being reported by segment because the information is not available by segment and is not reviewed in the evaluation of performance or in making decisions on the allocation of resources.

The following tables present information about reportable segments (in thousands):

	IT		TI		M&S		Events		Consolidated
Three months ended June 30, 2011
Revenue	$	24,414	$	21,079	$	21,265	$	6,692	$	73,450
Direct margin		16,066		14,550		13,020		3,605		47,241
Selling, marketing, administrative and other expenses										(37,099	)
Amortization of intangible assets										(526	)
Income from operations									$	9,616

	IT		TI		M&S		Events		Consolidated
Three months ended June 30, 2010
Revenue	$	23,247	$	18,342	$	17,444	$	5,620	$	64,653
Direct margin		16,166		14,388		10,616		2,090		43,260
Selling, marketing, administrative and other expenses										(32,226	)
Amortization of intangible assets										(905	)
Income from operations									$	10,129

	IT		TI		M&S		Events		Consolidated
Six months ended June 30, 2011
Revenue	$	48,447	$	40,719	$	41,329	$	8,697	$	139,192
Direct margin		32,254		29,150		25,228		4,192		90,824
Selling, marketing, administrative and other expenses										(75,791	)
Amortization of intangible assets										(1,219	)
Income from operations									$	13,814

	IT		TI		M&S		Events		Consolidated
Six months ended June 30, 2010
Revenue	$	46,126	$	36,275	$	34,244	$	7,188	$	123,833
Direct margin		32,079		28,303		20,775		1,970		83,127
Selling, marketing, administrative and other expenses										(63,450	)
Amortization of intangible assets										(1,810	)
Income from operations									$	17,867