(10) Operating Segment and Enterprise Wide Reporting

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 Analytics, 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 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 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, 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 and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company 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 making decisions in the allocation of resources.

In 2017, the Company modified its internal reporting for the Research and Project 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 and 2015 amounts have been reclassified to conform to the current presentation.

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

						Project
	Product		Research			Consulting		Consolidated
Year Ended December 31, 2017
Research services revenues	$	216,471	$	—		$	—	$	216,471
Advisory services and events revenues		21,887		45,054			54,261		121,202
Total segment revenues		238,358		45,054			54,261		337,673
Segment expenses		45,205		48,812			25,477		119,494
Contribution margin (loss)		193,153		(3,758	)		28,784		218,179
Selling, marketing, administrative and other expenses									(189,849	)
Amortization of intangible assets									(781	)
Reorganization costs									—
Other income and losses on investments									(178	)
Income before income taxes								$	27,371

						Project
	Product		Research			Consulting		Consolidated
Year Ended December 31, 2016
Research services revenues	$	215,216	$	—		$	—	$	215,216
Advisory services and events revenues		20,374		44,631			45,874		110,879
Total segment revenues		235,590		44,631			45,874		326,095
Segment expenses		41,528		47,496			23,141		112,165
Contribution margin (loss)		194,062		(2,865	)		22,733		213,930
Selling, marketing, administrative and other expenses									(181,299	)
Amortization of intangible assets									(831	)
Reorganization costs									(1,026	)
Other income and losses on investments									(65	)
Income before income taxes								$	30,709

						Project
	Product		Research			Consulting		Consolidated
Year Ended December 31, 2015
Research services revenues	$	210,268	$	—		$	—	$	210,268
Advisory services and events revenues		17,512		42,422			43,524		103,458
Total segment revenues		227,780		42,422			43,524		313,726
Segment expenses		38,615		48,277			23,292		110,184
Contribution margin (loss)		189,165		(5,855	)		20,232		203,542
Selling, marketing, administrative and other expenses									(179,391	)
Amortization of intangible assets									(891	)
Reorganization costs									(4,433	)
Other income and losses on investments									493
Income before income taxes								$	19,320

Net long-lived tangible assets by location as of December 31, 2017 and 2016 are as follows (in thousands):

	2017		2016
United States	$	23,943	$	22,150
United Kingdom		727		782
Europe (excluding United Kingdom)		163		259
Other		416		703
Total	$	25,249	$	23,894

Revenues by geographic destination and as a percentage of total revenues for the years ended December 31, 2017, 2016, and 2015 are as follows (dollars in thousands):

	2017		2016		2015
United States	$	260,077	$	252,222	$	241,025
Europe (excluding United Kingdom)		28,525		27,061		24,607
United Kingdom		13,651		14,808		16,815
Canada		14,523		13,806		14,424
Other		20,897		18,198		16,855
Total	$	337,673	$	326,095	$	313,726

	2017			2016			2015
United States		77	%		77	%		77	%
Europe (excluding United Kingdom)		9			8			8
United Kingdom		4			5			5
Canada		4			4			5
Other		6			6			5
Total		100	%		100	%		100	%