SEGMENT INFORMATION

During 2018, the Company divested all three of the non-core businesses that comprised its Other segment, each of which were acquired as part of the acquisition of CEB Inc. in April 2017. As a result of these divestitures and the movement of a small residual product in the Other segment into the Research business, the Company is no longer recording any additional operating activity in the Other segment effective September 1, 2018. Additional information regarding the divestitures is included in Note 2 – Acquisitions and Divestitures.

Our products and services are currently delivered through three segments – Research, Conferences and Consulting, 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 and advisors, 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.

•

Conferences (formerly called Events) provides business professionals across the organization the opportunity to learn, share and network. From our flagship Chief Information Officer conference Gartner IT Symposium, to industry-leading conferences focused on specific business roles and topics, to member-driven sessions, our offerings enable attendees to experience the best of Gartner insight and advice live.


•	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.

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



	Research		Conferences		Consulting		Other		Consolidated
2018
Revenues	$	3,105,764	$	410,461	$	353,667	$	105,562	$	3,975,454
Gross contribution	2,144,097		207,260		102,541		65,075		2,518,973
Corporate and other expenses									(2,259,258		)
Operating income									$	259,715

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

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

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



	2018		2017			2016
Total segment gross contribution	$	2,518,973	$	2,000,386		$	1,512,000
Costs and expenses:
Cost of services and product development - unallocated (1)	12,319		9,090			13,108
Selling, general and administrative	1,884,141		1,599,004			1,089,184
Depreciation and amortization	255,601		240,171			61,969
Acquisition and integration charges	107,197		158,450			42,598
Operating income (loss)	259,715		(6,329		)	305,141
Interest expense and other, net	124,041		121,488			16,710
Gain from divested operations	45,447		—			—
Provision (benefit) for income taxes	58,665		(131,096		)	94,849
Net income	$	122,456	$	3,279		$	193,582


(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.

Disaggregated revenue information by reportable segment for the three years ended December 31, 2018, including our Other segment, is presented in Note 1 – Business and Significant Accounting Policies. Long-lived asset information by geographic location as of December 31 is summarized in the table below (in thousands).



	2018		2017		2016
Long-lived assets: (1)
United States and Canada	$	305,928	$	288,735	$	143,921
Europe, Middle East and Africa	67,306		84,840		42,326
Other International	50,800		41,674		24,630
Total long-lived assets	$	424,034	$	415,249	$	210,877


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