Segment Information

3 Months Ended

Mar. 31, 2021

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 March 31, 2021	Research		Conferences		Consulting		Consolidated
Revenues	$	979,732	$	24,802	$	99,504	$	1,104,038
Gross contribution	724,372		13,896		39,098		777,366
Corporate and other expenses							(551,954)
Operating income							$	225,412

Three Months Ended March 31, 2020	Research		Conferences		Consulting		Consolidated
Revenues	$	909,291	$	13,870	$	95,730	$	1,018,891
Gross contribution	653,469		(6,060)		29,382		676,791
Corporate and other expenses							(552,073)
Operating income							$	124,718

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

	Three Months Ended
	March 31,
	2021		2020
Total segment gross contribution	$	777,366	$	676,791
Costs and expenses:
Cost of services and product development - unallocated (1)	7,795		(822)
Selling, general and administrative	487,255		496,639
Depreciation and amortization	56,264		54,696
Acquisition and integration charges	640		1,560
Operating income	225,412		124,718
Interest expense and other, net	(10,659)		(27,864)
Less: Provision for income taxes	50,653		21,757
Net income	$	164,100	$	75,097

(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.