Segment Information

3 Months Ended

Mar. 31, 2019

Our products and services are 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. Our traditional strengths in IT, marketing and supply chain research are supplemented by best practice and talent management research insights across a range of business functions, to include human resources, sales, legal and finance.


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



Three Months Ended March 31, 2019 (1)	Research		Conferences		Consulting		Consolidated
Revenues	$	825,374	$	51,932	$	93,138	$	970,444
Gross contribution	575,168		18,876		28,718		622,762
Corporate and other expenses							(573,963		)
Operating income							$	48,799



Three Months Ended March 31, 2018	Research		Conferences		Consulting		Other		Consolidated
Revenues	$	763,924	$	46,087	$	82,896	$	70,658	$	963,565
Gross contribution	531,456		16,190		24,124		43,044		614,814
Corporate and other expenses									(623,525		)
Operating loss									$	(8,711	)

(1) During 2018, the Company divested all of its non-core businesses that comprised its Other segment and, as a result, the Company is no longer recording any additional operating activity in the Other segment.

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



	Three Months Ended
	March 31,
	2019			2018
Total segment gross contribution	$	622,762		$	614,814
Costs and expenses:
Cost of services and product development - unallocated (1)	(1,037		)	8,458
Selling, general and administrative	518,770			487,745
Depreciation and amortization	53,458			68,056
Acquisition and integration charges	2,772			59,266
Operating income (loss)	48,799			(8,711		)
Interest expense and other, net	25,671			34,160
Loss from divested operations	2,075			—
Provision (benefit) for income taxes	258			(23,284		)
Net income (loss)	$	20,795		$	(19,587	)

(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.