Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company manages its business through three reportable segments: Research, Consulting and Events. Research primarily consists of subscription-based research products, access to research inquiry, peer networking services, and membership programs. Consulting consists 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 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 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 following tables present operating results for the Company’s reportable segments for the years ended December 31 (in thousands):

	Research		Consulting		Events		Consolidated
2016
Revenues	$	1,829,721	$	346,214	$	268,605	$	2,444,540
Gross contribution	1,267,760		107,585		136,655		1,512,000
Corporate and other expenses							(1,206,859		)
Operating income							$	305,141
	Research		Consulting		Events		Consolidated
2015
Revenues	$	1,583,486	$	327,735	$	251,835	$	2,163,056
Gross contribution	1,096,827		107,193		130,527		1,334,547
Corporate and other expenses							(1,046,550		)
Operating income							$	287,997
	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

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,
	2016		2015		2014
Total segment gross contribution	$	1,512,000	$	1,334,547	$	1,234,229
Costs and expenses:
Cost of services and product development - unallocated (1)	13,108		10,567		10,721
Selling, general and administrative	1,089,184		962,677		876,067
Depreciation and amortization	61,969		47,131		39,412
Acquisition and integration charges	42,598		26,175		21,867
Operating income	305,141		287,997		286,162
Interest expense and other	16,710		15,786		11,479
Provision for income taxes	94,849		96,576		90,917
Net income	$	193,582	$	175,635	$	183,766

(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):  

	2016		2015		2014
Revenues:
United States and Canada	$	1,519,748	$	1,347,676	$	1,204,476
Europe, Middle East and Africa	616,721		557,165		570,334
Other International	308,071		258,215		246,631
Total revenues	$	2,444,540	$	2,163,056	$	2,021,441
Long-lived assets: (1)
United States and Canada	$	143,921	$	163,933	$	142,963
Europe, Middle East and Africa	42,326		31,130		34,093
Other International	24,630		16,050		13,282
Total long-lived assets	$	210,877	$	211,113	$	190,338

(1) Excludes goodwill and other intangible assets.