Subsequent Event

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Event

Subsequent Events

On April 1, 2020, the Company drew down an additional $300 million under the revolving credit facility to increase its cash position and preserve financial flexibility in light of current uncertainty in the global market.

In April 2020, the Company committed to workforce reductions and implemented an employee furlough program within the Conferences segment, affecting approximately 45% of total Conference employees (approximately 3% of total Company employees). The majority of terminations and furloughs were effective April 30, 2020. The Company expects to incur an aggregate of approximately $5 million to $6 million in costs relating to these workforce reductions. The Company expects the majority of these charges to be incurred and paid in the second quarter of 2020.

On May 6, 2020, the 2016 Credit Agreement was amended with the consent of the required lenders to, among other things,modify certain financial maintenance covenants to provide additional flexibility to Gartner through December 31, 2021. The amendment increases the maximum consolidated leverage ratio to 5.00 to 1.00 and the maximum consolidated secured leverage ratio to 3.75 to 1.00 (each as determined in accordance with the 2016 Credit Agreement), in each case for fiscal quarters ending on June 30, 2020 through and including December 31, 2021. The amendment only increases the applicable margin for all outstanding Revolving Loans and Tranche A Term Loans (each as defined in the 2016 Credit Agreement) to the extent the consolidated leverage ratio (as determined in accordance with the Credit Agreement) exceeds 4.50 to 1.00.