Segment Information

9 Months Ended

Sep. 30, 2016

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 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 Cost of services and product development expenses, Selling, general and administrative expenses, Depreciation, Amortization of intangibles, and Acquisition and integration charges. Certain bonus and fringe benefit costs included in consolidated Cost of services and product development 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 does not identify or allocate assets, including capital expenditures, by reportable segment. Accordingly, assets are not reported by segment because the information is not available by segment and is not reviewed in the evaluation of segment performance or in making decisions in the allocation of resources.

The following tables present operating information about the Company’s reportable segments for the periods indicated (in thousands):

Three Months Ended September 30, 2016	Research		Consulting		Events		Consolidated
Revenues	$	461,502	$	79,082	$	33,475	$	574,059
Gross contribution	319,239		21,622		14,529		355,390
Corporate and other expenses							(306,664		)
Operating income							$	48,726

Three Months Ended September 30, 2015	Research		Consulting		Events		Consolidated
Revenues	$	396,179	$	74,686	$	29,301	$	500,166
Gross contribution	274,967		21,593		11,543		308,103
Corporate and other expenses							(255,629		)
Operating income							$	52,474

Nine Months Ended September 30, 2016	Research		Consulting		Events		Consolidated
Revenues	$	1,350,943	$	258,090	$	132,290	$	1,741,323
Gross contribution	941,113		84,273		63,574		1,088,960
Corporate and other expenses							(892,506		)
Operating income							$	196,454

Nine Months Ended September 30, 2015	Research		Consulting		Events		Consolidated
Revenues	$	1,162,987	$	239,814	$	116,487	$	1,519,288
Gross contribution	811,877		81,175		53,427		946,479
Corporate and other expenses							(760,103		)
Operating income							$	186,376

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Total segment gross contribution	$	355,390	$	308,103	$	1,088,960	$	946,479
Costs and expenses:
Cost of services and product development - unallocated (1)	4,453		1,539		14,222		9,050
Selling, general and administrative	269,902		236,355		799,322		703,868
Depreciation and amortization	15,752		11,247		46,004		31,922
Acquisition and integration charges	16,557		6,488		32,958		15,263
Operating income	48,726		52,474		196,454		186,376
Interest expense and other, net	3,978		682		14,208		10,832
Provision for income taxes	14,264		21,426		55,149		65,672
Net income	$	30,484	$	30,366	$	127,097	$	109,872

(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.