Operating Segments

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Operating Segments

Note 9 — Operating Segments

The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment.

The Product segment includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes the costs of the Company’s Data, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the majority of the Company’s project consulting services. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, certain client support expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income (expense), and gains (losses) on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

In the first quarter of 2017, the Company modified its internal reporting for the Research and Projecting Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expenses in the table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended March 31, 2017
Research services revenues	$	51,743	$	—		$	—	$	51,743
Advisory services and events revenues		2,501		10,493			12,457		25,451
Total segment revenues		54,244		10,493			12,457		77,194
Segment expenses		9,227		12,143			5,854		27,224
Contribution margin (loss)		45,017		(1,650	)		6,603		49,970
Selling, marketing, administrative and other expenses									(46,643	)
Amortization of intangible assets									(191	)
Reorganization costs									—
Other income (expense) and losses on investments									(194	)
Income before income taxes								$	2,942

						Project
	Product		Research			Consulting		Consolidated
Three Months Ended March 31, 2016
Research services revenues	$	53,248	$	—		$	—	$	53,248
Advisory services and events revenues		2,701		10,377			11,075		24,153
Total segment revenues		55,949		10,377			11,075		77,401
Segment expenses		8,878		12,445			5,865		27,188
Contribution margin (loss)		47,071		(2,068	)		5,210		50,213
Selling, marketing, administrative and other expenses									(46,277	)
Amortization of intangible assets									(209	)
Reorganization costs									(1,015	)
Other income (expense) and losses on investments									(328	)
Income before income taxes								$	2,384