Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company manages its business through three reportable segments: Research, Consulting and Events. Research consists primarily of subscription-based research products, access to research inquiry, peer networking services, and membership programs. Consulting consists primarily of consulting, measurement engagements, and strategic advisory services. Events consists of various symposia, conferences and exhibitions.

The Company evaluates reportable segment performance and allocates resources based on gross contribution margin. Gross contribution, as presented in the table below, is defined as operating income excluding certain COS expenses, SG&A expense, depreciation, acquisition and integration charges, and amortization of intangibles. Certain bonus and fringe benefit costs included in consolidated COS are not allocated to segment expense. The accounting policies used by the reportable segments are the same as those used by the Company. There are no intersegment revenues.

The Company earns revenue from clients in many countries. Other than the United States, there is no individual country in which revenues from external clients represent 10% or more of the Company’s consolidated revenues. Additionally, no single client accounted for 10% or more of total revenue and the loss of a single client, in management’s opinion, would not have a material adverse effect on revenues. The Company does not identify or allocate assets, including capital expenditures, by reportable 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.

The following tables present operating information about the Company’s reportable segments for the years ended December 31 (in thousands):

	Research		Consulting		Events		Consolidated
2014
Revenues	$	1,445,338	$	348,396	$	227,707	$	2,021,441
Gross contribution	1,001,914		119,931		112,384		1,234,229
Corporate and other expenses							(948,067		)
Operating income							$	286,162
	Research		Consulting		Events		Consolidated
2013
Revenues	$	1,271,011	$	314,257	$	198,945	$	1,784,213
Gross contribution	879,384		107,565		91,216		1,078,165
Corporate and other expenses							(802,673		)
Operating income							$	275,492
	Research		Consulting		Events		Consolidated
2012
Revenues	$	1,137,147	$	304,893	$	173,768	$	1,615,808
Gross contribution	774,342		109,253		80,119		963,714
Corporate and other expenses							(718,007		)
Operating income							$	245,707

The following table provides a reconciliation of total segment gross contribution to net income for the periods indicated (in thousands):

	Twelve months ended
	December 31,
	2014		2013		2012
Total segment gross contribution	$	1,234,229	$	1,078,165	$	963,714
Costs and expenses:
Cost of services and product development - unallocated (1)	10,721		7,436		6,973
Selling, general and administrative	876,067		760,458		678,843
Depreciation and amortization	39,412		34,442		29,771
Acquisition and integration charges	21,867		337		2,420
Operating income	286,162		275,492		245,707
Interest expense and other	11,479		9,053		10,111
Provision for income taxes	90,917		83,638		69,693
Net income	$	183,766	$	182,801	$	165,903

(1) The unallocated amounts consist of certain bonus and related fringe costs recorded in Consolidated cost of services and product development expense that are not allocated to segment expense. The Company's policy is to only allocate bonus and related fringe charges to segments for up to 100% of the segment employee's target bonus. Amounts above 100% are absorbed by corporate.

The Company’s revenues are generated primarily through direct sales to clients by domestic and international sales forces and a network of independent international sales agents. Most of the Company’s products and services are provided on an integrated worldwide basis, and because of this integrated delivery, it is not practical to precisely separate our revenues by geographic location.

Accordingly, the separation set forth in the table below is based upon internal allocations, which involve certain management estimates and judgments. Revenues in the table are reported based on where the sale is fulfilled; “Other International” revenues are those attributable to all areas located outside of the United States and Canada, as well as Europe, Middle East, and Africa.

Summarized information by geographic location as of and for the years ended December 31 follows (in thousands):

	2014		2013		2012
Revenues:
United States and Canada	$	1,204,476	$	1,049,734	$	947,075
Europe, Middle East and Africa	570,334		508,755		458,675
Other International	246,631		225,724		210,058
Total revenues	$	2,021,441	$	1,784,213	$	1,615,808
Long-lived assets: (1)
United States and Canada	$	142,963	$	123,877	$	114,557
Europe, Middle East and Africa	34,093		34,363		30,967
Other International	13,282		13,936		16,956
Total long-lived assets	$	190,338	$	172,176	$	162,480

(1) Excludes goodwill and other intangible assets.