SEGMENT INFORMATION

As a result of the CEB acquisition on April 5, 2017, the Company began reporting its results across four business segments reflecting its enlarged scale and breadth of advisory services aligned to the mission-critical priorities of virtually all functional business leaders across every industry and size of enterprise worldwide.

Our products and services are delivered through four segments – Research, Consulting, Events and Talent Assessment & Other, as follows:

•

Research provides trusted, objective insights and advice on the mission-critical priorities of leaders across all functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to our analysts, peer networking services and membership programs that enable our clients to make better decisions. Gartner's traditional strengths in IT, marketing and supply chain research were enhanced in 2017 with Gartner's acquisition of CEB, Inc., which added CEB's best practice and talent management research insights across a range of business functions, to include human resources, sales, legal and finance.


•	Consulting provides customized solutions to unique client needs through on-site, day-to-day support, as well as proprietary tools for measuring and improving IT performance with a focus on cost, performance, efficiency and quality.


•	Events provides business professionals across the organization the opportunity to learn, share and network. From our flagship CIO event Gartner Symposium/ITxpo, to industry-leading conferences focused on specific business roles and topics, to member-driven sessions, our events enable attendees to experience the best of Gartner insight and advice live.


•	Talent Assessment & Other helps organizations assess, engage, manage and improve talent. This is accomplished through knowledge and skills assessments, training programs, workshops, and survey and questionnaire services.

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 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 information about the Company’s reportable segments for the periods indicated (in thousands):



	Research		Consulting		Events		Talent Assessment & Other	Consolidated
2017 (1)
Revenues	$	2,471,280	$	327,661	$	337,903	174,650	$	3,311,494
Gross contribution	1,653,014		93,643		163,480		90,249	2,000,386
Corporate and other expenses								(2,006,715		)
Operating (loss)								$	(6,329	)

	Research		Consulting		Events		Talent Assessment & Other	Consolidated
2016 (1)
Revenues	$	1,857,001	$	318,934	$	268,605	—	$	2,444,540
Gross contribution	1,285,611		89,734		136,655		—	1,512,000
Corporate and other expenses								(1,206,859		)
Operating income								$	305,141

	Research		Consulting		Events		Talent Assessment & Other	Consolidated
2015 (1)
Revenues	$	1,614,904	$	296,317	$	251,835	—	$	2,163,056
Gross contribution	1,117,534		86,486		130,527		—	1,334,547
Corporate and other expenses								(1,046,550		)
Operating income								$	287,997

(1) In 2017 the Company began reporting the results of its Strategic Advisory Services ("SAS") business in Research whereas previously the SAS business was reported with Consulting. Although the impact of the reclassification was not significant, the operating results of the SAS business for 2016 and 2015 were reclassified from Consulting to Research to be comparable with the current year presentation.

The following table provides a reconciliation of total segment gross contribution to net income for the years ended December 31 (in thousands):



	2017			2016		2015
Total segment gross contribution	$	2,000,386		$	1,512,000	$	1,334,547
Costs and expenses:
Cost of services and product development - unallocated (1)	9,090			13,108		10,567
Selling, general and administrative	1,599,004			1,089,184		962,677
Depreciation and amortization	240,171			61,969		47,131
Acquisition and integration charges	158,450			42,598		26,175
Operating (loss) income	(6,329		)	305,141		287,997
Interest expense and other, net	121,488			16,710		15,786
(Benefit) provision for income taxes	(131,096		)	94,849		96,576
Net income	$	3,279		$	193,582	$	175,635


(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):



	2017		2016		2015
Revenues:
United States and Canada	$	2,037,111	$	1,519,748	$	1,347,676
Europe, Middle East and Africa	850,352		616,721		557,165
Other International	424,031		308,071		258,215
Total revenues	$	3,311,494	$	2,444,540	$	2,163,056

Long-lived assets: (1)
United States and Canada	$	288,735	$	143,921	$	163,933
Europe, Middle East and Africa	84,840		42,326		31,130
Other International	41,674		24,630		16,050
Total long-lived assets	$	415,249	$	210,877	$	211,113


(1)	Excludes goodwill, intangible, and held-for-sale assets.