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Segment Information
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
Our 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 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 tangible assets, including capital expenditures, by reportable segment. Accordingly, tangible 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 Company earns revenue from clients in many countries. Other than the United States, there is no individual country where revenues from external clients represent 10% or more of the Company’s consolidated revenues. Additionally, no single client accounted for 10% or more of the Company’s consolidated revenues and the loss of a single client, in management’s opinion, would not have a material adverse effect on revenues.

The tables below present information about the Company’s reportable segments for the years ended December 31 (in thousands).
 ResearchConferencesConsultingConsolidated
2020   
Revenues$3,602,892 $120,140 $376,371 $4,099,403 
Gross contribution2,597,852 57,302 115,744 2,770,898 
Corporate and other expenses   (2,280,748)
Operating income   $490,150 
2019
Revenues$3,374,548 $476,869 $393,904 $4,245,321 
Gross contribution$2,351,720 $241,757 $118,450 $2,711,927 
Corporate and other expenses$(2,341,840)
Operating income$370,087 

 ResearchConferencesConsultingOther (1)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 

(1)    During 2018, the Company divested all of the non-core businesses that comprised its Other segment and moved a small residual product from the Other segment into the Research business and, as a result, no operating activity has been recorded in the Other segment in 2019 or 2020. Note 2 — Acquisitions and Divestitures provides additional information regarding the Company’s 2018 divestitures.
The table below provides a reconciliation of total segment gross contribution to net income for the years ended December 31 (in thousands).
202020192018
Total segment gross contribution$2,770,898 $2,711,927 $2,518,973 
Costs and expenses:
Cost of services and product development - unallocated (1)16,519 17,174 12,319 
Selling, general and administrative2,038,963 2,103,424 1,884,141 
Depreciation and amortization218,984 211,779 255,601 
Acquisition and integration charges6,282 9,463 107,197 
Operating income490,150 370,087 259,715 
Interest expense and other, net(119,203)(92,273)(124,041)
(Loss) gain from divested operations— (2,075)45,447 
Loss on extinguishment of debt(44,814)— — 
Less: Provision for income taxes59,388 42,449 58,665 
Net income$266,745 $233,290 $122,456 


(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.

Disaggregated revenue information by reportable segment for the three years ended December 31, 2020 is presented in Note 9 — Revenue and Related Matters. Long-lived asset information by geographic location as of December 31 is summarized in the table below (in thousands).
 20202019
Long-lived assets (1):  
United States and Canada $820,973 $867,974 
Europe, Middle East and Africa265,782 242,729 
Other International153,609 159,037 
Total long-lived assets$1,240,364 $1,269,740 
(1)Excludes goodwill and intangible assets for all dates.