Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s products and services are delivered through three segments – Research, Conferences and Consulting, as described below.

•Research provides trusted, objective insights and advice on the mission-critical priorities of leaders across all functional areas of an enterprise through reports, briefings, proprietary tools, access to our research experts, peer networking services and membership programs that enable our clients to drive organizational performance.

•Conferences provides business professionals across an organization the opportunity to learn, share and network. From our Gartner Symposium/Xpo series, to industry-leading conferences focused on specific business roles and topics, to peer-driven sessions, our offerings enable attendees to experience the best of Gartner insight and advice.

•Consulting combines the power of Gartner market-leading research with custom analysis and on-the-ground support to help chief information officers and other senior executives driving technology-related strategic initiatives move confidently from insight to action.

The Company evaluates segment performance and allocates resources based on gross contribution margin. Gross contribution, as presented in the tables 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 regarding the allocation of resources.

The tables below present information about the Company’s reportable segments for the periods indicated (in thousands).

Three Months Ended September 30, 2020	Research		Conferences		Consulting		Consolidated
Revenues	$	892,719	$	12,738	$	89,161	$	994,618
Gross contribution	642,328		2,044		28,161		672,533
Corporate and other expenses							(584,883)
Operating income							$	87,650

Three Months Ended September 30, 2019	Research		Conferences		Consulting		Consolidated
Revenues	$	840,998	$	66,286	$	93,218	$	1,000,502
Gross contribution	582,502		27,465		26,538		636,505
Corporate and other expenses							(567,358)
Operating income							$	69,147

Nine Months Ended September 30, 2020	Research		Conferences		Consulting		Consolidated
Revenues	$	2,677,339	$	26,925	$	282,380	$	2,986,644
Gross contribution	1,928,422		(15,246)		91,086		2,004,262
Corporate and other expenses							(1,692,242)
Operating income							$	312,020

Nine Months Ended September 30, 2019	Research		Conferences		Consulting		Consolidated
Revenues	$	2,492,427	$	259,392	$	290,009	$	3,041,828
Gross contribution	1,729,967		126,910		89,493		1,946,370
Corporate and other expenses							(1,712,422)
Operating income							$	233,948

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Total segment gross contribution	$	672,533	$	636,505	$	2,004,262	$	1,946,370
Costs and expenses:
Cost of services and product development - unallocated (1)	7,682		1,059		11,214		4,242
Selling, general and administrative	521,508		512,159		1,512,987		1,545,905
Depreciation and amortization	53,971		52,398		162,603		158,119
Acquisition and integration charges	1,722		1,742		5,438		4,156
Operating income	87,650		69,147		312,020		233,948
Interest expense and other, net	(28,669)		(16,049)		(97,228)		(66,716)
Loss from divested operations	—		—		—		(2,075)
Loss on extinguishment of debt	(44,814)		—		(44,814)		—
Less: (Benefit) provision for income taxes	(2,797)		11,710		22,840		(432)
Net income	$	16,964	$	41,388	$	147,138	$	165,589

(1)The unallocated amounts consist of certain bonus and fringe costs recorded in consolidated Cost of services and product development that are not allocated to segment expense. The Company’s policy is to allocate bonuses to segments at 100% of a segment employee’s target bonus. Amounts above or below 100% are absorbed by corporate.