Segment Information

3 Months Ended

Mar. 31, 2017

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 March 31, 2017	Research		Consulting		Events		Consolidated
Revenues	$	504,652	$	85,248	$	35,269	$	625,169
Gross contribution	346,708		28,342		13,567		388,617
Corporate and other expenses							(335,103		)
Operating income							$	53,514

Three Months Ended March 31, 2016	Research		Consulting		Events		Consolidated
Revenues	$	440,271	$	84,940	$	32,055	$	557,266
Gross contribution	308,186		29,378		12,983		350,547
Corporate and other expenses							(286,118		)
Operating income							$	64,429

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

	Three Months Ended
	March 31,
	2017		2016
Total segment gross contribution	$	388,617	$	350,547
Costs and expenses:
Cost of services and product development - unallocated (1)	1,057		5,322
Selling, general and administrative	304,244		257,411
Depreciation and amortization	16,530		15,017
Acquisition and integration charges	13,272		8,368
Operating income	53,514		64,429
Interest expense and other, net	5,017		4,122
Provision for income taxes	12,064		15,320
Net income	$	36,433	$	44,987

(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.