Segment Information

6 Months Ended

Jun. 30, 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 June 30, 2021	Research		Conferences		Consulting		Consolidated
Revenues	$	1,003,238	$	58,179	$	105,902	$	1,167,319
Gross contribution	742,131		42,602		42,770		827,503
Corporate and other expenses							(552,789)
Operating income							$	274,714

Three Months Ended June 30, 2020	Research		Conferences		Consulting		Consolidated
Revenues	$	875,329	$	317	$	97,489	$	973,135
Gross contribution	632,624		(11,230)		33,542		654,936
Corporate and other expenses							(555,285)
Operating income							$	99,651

Six Months Ended June 30, 2021	Research		Conferences		Consulting		Consolidated
Revenues	$	1,982,970	$	82,981	$	205,406	$	2,271,357
Gross contribution	1,466,503		56,498		81,868		1,604,869
Corporate and other expenses							(1,104,743)
Operating income							$	500,126

Six Months Ended June 30, 2020	Research		Conferences		Consulting		Consolidated
Revenues	$	1,784,620	$	14,187	$	193,219	$	1,992,026
Gross contribution	1,286,094		(17,290)		62,925		1,331,729
Corporate and other expenses							(1,107,359)
Operating income							$	224,370

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Total segment gross contribution	$	827,503	$	654,936	$	1,604,869	$	1,331,729
Costs and expenses:
Cost of services and product development - unallocated (1)	10,986		4,352		18,781		3,532
Selling, general and administrative	488,496		494,840		975,751		991,479
Depreciation and amortization	52,005		53,936		108,269		108,632
Acquisition and integration charges	1,302		2,157		1,942		3,716
Operating income	274,714		99,651		500,126		224,370
Interest expense and other, net	(31,072)		(40,695)		(41,731)		(68,559)
Gain on event cancellation insurance claims	135,545		—		135,545		—
Less: Provision for income taxes	107,951		3,879		158,604		25,637
Net income	$	271,236	$	55,077	$	435,336	$	130,174

(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.