UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
	For the quarterly period ended June 30, 2022
	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission File Number 1-14443

Gartner, Inc.

(Exact name of Registrant as specified in its charter)

Delaware	04-3099750
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)
P.O. Box 10212	06902-7700
56 Top Gallant Road	(Zip Code)
Stamford,
Connecticut
(Address of principal executive offices)

Registrant’s telephone number, including area code: (203) 316-1111

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $.0005 par value per share	IT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐
		Smaller reporting company	☐	Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of July 29, 2022, 79,093,899 shares of the registrant’s common shares were outstanding.

1

Table of Contents

	Page
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Condensed Consolidated Balance Sheets at June 30, 2022 and December 31, 2021	3
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021	4
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021	5
Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity for the Three and Six Months Ended June 30, 2022 and 2021	6
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021	7
Notes to Condensed Consolidated Financial Statements	8
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	26
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	39
ITEM 4. CONTROLS AND PROCEDURES	40
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	41
ITEM 1A. RISK FACTORS	41
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	41
ITEM 6. EXHIBITS	42

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited; in thousands, except share data)

	June 30,		December 31,
	2022		2021
Assets
Current assets:
Cash and cash equivalents	$	360,473	$	756,493
Fees receivable, net of allowances of $9,500 and $6,500, respectively	1,171,996		1,365,180
Deferred commissions	312,048		380,569
Prepaid expenses and other current assets	136,765		117,838
Total current assets	1,981,282		2,620,080
Property, equipment and leasehold improvements, net	250,315		273,562
Operating lease right-of-use assets	481,551		548,258
Goodwill	2,943,257		2,951,317
Intangible assets, net	645,368		714,418
Other assets	288,821		308,689
Total Assets	$	6,590,594	$	7,416,324
Liabilities and Stockholders’ (Deficit) Equity
Current liabilities:
Accounts payable and accrued liabilities	$	775,371	$	1,134,814
Deferred revenues	2,396,143		2,238,035
Current portion of long-term debt	6,868		5,931
Total current liabilities	3,178,382		3,378,780
Long-term debt, net of deferred financing fees	2,455,506		2,456,833
Operating lease liabilities	646,677		697,766
Other liabilities	452,896		511,887
Total Liabilities	6,733,461		7,045,266
Stockholders’ (Deficit) Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding	—		—
Common stock, $0.0005 par value, 250,000,000 shares authorized; 163,602,067 shares issued for both periods	82		82
Additional paid-in capital	2,136,684		2,074,896
Accumulated other comprehensive loss, net	(104,516)		(81,431)
Accumulated earnings	3,426,467		3,049,027
Treasury stock, at cost, 84,107,724 and 81,205,504 common shares, respectively	(5,601,584)		(4,671,516)
Total Stockholders’ (Deficit) Equity	(142,867)		371,058
Total Liabilities and Stockholders’ (Deficit) Equity	$	6,590,594	$	7,416,324

See the accompanying notes to Condensed Consolidated Financial Statements.

3

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited; in thousands, except per share data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Revenues:
Research	$	1,142,329	$	1,003,238	$	2,278,709	$	1,982,970
Conferences	113,525		58,179		123,879		82,981
Consulting	120,667		105,902		236,673		205,406
Total revenues	1,376,521		1,167,319		2,639,261		2,271,357
Costs and expenses:
Cost of services and product development	424,535		350,802		801,568		685,269
Selling, general and administrative	604,911		488,496		1,222,815		975,751
Depreciation	22,910		25,851		46,111		51,601
Amortization of intangibles	24,754		26,154		49,902		56,668
Acquisition and integration charges	2,289		1,302		4,496		1,942
Total costs and expenses	1,079,399		892,605		2,124,892		1,771,231
Operating income	297,122		274,714		514,369		500,126
Interest expense, net	(29,719)		(27,390)		(61,113)		(53,539)
Gain on event cancellation insurance claims	—		135,545		—		135,545
Other income (expense), net	8,548		(3,682)		37,754		11,808
Income before income taxes	275,951		379,187		491,010		593,940
Provision for income taxes	71,026		107,951		113,570		158,604
Net income	$	204,925	$	271,236	$	377,440	$	435,336
Net income per share:
Basic	$	2.55	$	3.16	$	4.65	$	5.00
Diluted	$	2.53	$	3.13	$	4.60	$	4.95
Weighted average shares outstanding:
Basic	80,271		85,712		81,145		87,032
Diluted	80,974		86,589		82,011		87,921

See the accompanying notes to Condensed Consolidated Financial Statements.

4

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited; in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income	$	204,925	$	271,236	$	377,440	$	435,336
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(25,431)		4,639		(32,229)		5,316
Interest rate swaps – net change in deferred gain or loss	3,869		5,457		9,239		10,727
Pension plans – net change in deferred actuarial loss	(143)		104		(95)		207
Other comprehensive (loss) income, net of tax	(21,705)		10,200		(23,085)		16,250
Comprehensive income	$	183,220	$	281,436	$	354,355	$	451,586

See the accompanying notes to Condensed Consolidated Financial Statements.

5

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity

(Unaudited; in thousands)

Three and Six Months Ended June 30, 2022
	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Loss, Net		Accumulated Earnings		Treasury Stock		Total
Balance at December 31, 2021	$	82	$	2,074,896	$	(81,431)	$	3,049,027	$	(4,671,516)	$	371,058
Net income	—		—		—		172,515		—		172,515
Other comprehensive loss	—		—		(1,380)		—		—		(1,380)
Issuances under stock plans	—		579		—		—		6,385		6,964
Common share repurchases	—		—		—		—		(463,125)		(463,125)
Stock-based compensation expense	—		32,121		—		—		—		32,121
Balance at March 31, 2022	$	82	$	2,107,596	$	(82,811)	$	3,221,542	$	(5,128,256)	$	118,153
Net income	—		—		—		204,925		—		204,925
Other comprehensive loss	—		—		(21,705)		—		—		(21,705)
Issuances under stock plans	—		4,634		—		—		427		5,061
Common share repurchases	—		—		—		—		(473,755)		(473,755)
Stock-based compensation expense	—		24,454		—		—		—		24,454
Balance at June 30, 2022	$	82	$	2,136,684	$	(104,516)	$	3,426,467	$	(5,601,584)	$	(142,867)

Three and Six Months Ended June 30, 2021
	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Loss, Net		Accumulated Earnings		Treasury Stock		Total
Balance at December 31, 2020	$	82	$	1,968,930	$	(99,228)	$	2,255,467	$	(3,034,823)	$	1,090,428
Net income	—		—		—		164,100		—		164,100
Other comprehensive income	—		—		6,050		—		—		6,050
Issuances under stock plans	—		(1,543)		—		—		6,923		5,380
Common share repurchases	—		—		—		—		(410,450)		(410,450)
Stock-based compensation expense	—		36,086		—		—		—		36,086
Balance at March 31, 2021	$	82	$	2,003,473	$	(93,178)	$	2,419,567	$	(3,438,350)	$	891,594
Net income	—		—		—		271,236		—		271,236
Other comprehensive income	—		—		10,200		—		—		10,200
Issuances under stock plans	—		2,063		—		—		2,017		4,080
Common share repurchases	—		—		—		—		(675,662)		(675,662)
Stock-based compensation expense	—		26,190		—		—		—		26,190
Balance at June 30, 2021	$	82	$	2,031,726	$	(82,978)	$	2,690,803	$	(4,111,995)	$	527,638

See the accompanying notes to Condensed Consolidated Financial Statements.

6

GARTNER, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited; in thousands)

	Six Months Ended
	June 30,
	2022		2021
Operating activities:
Net income	$	377,440	$	435,336
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	96,013		108,269
Stock-based compensation expense	56,575		62,276
Deferred taxes	3,256		2,294
Loss on impairment of lease related assets	35,501		—
Reduction in the carrying amount of operating lease right-of-use assets	35,366		37,261
Amortization and write-off of deferred financing fees	2,273		1,914
Gain on de-designated swaps	(40,547)		(11,751)
Changes in assets and liabilities:
Fees receivable, net	159,098		132,650
Deferred commissions	60,156		10,494
Prepaid expenses and other current assets	(20,248)		(822)
Other assets	11,317		(23,769)
Deferred revenues	212,083		190,814
Accounts payable and accrued and other liabilities	(404,891)		(212,321)
Cash provided by operating activities	583,392		732,645
Investing activities:
Additions to property, equipment and leasehold improvements	(38,385)		(24,479)
Acquisitions - cash paid (net of cash acquired)	—		(22,774)
Cash used in investing activities	(38,385)		(47,253)
Financing activities:
Proceeds from employee stock purchase plan	11,995		9,414
Proceeds from borrowings	—		600,000
Payments of deferred financing fees	—		(6,045)
Payments on revolving credit facility	—		(5,000)
Payments on borrowings	(2,663)		(105,256)
Purchases of treasury stock	(929,880)		(1,083,350)
Cash used in financing activities	(920,548)		(590,237)
Net (decrease) increase in cash and cash equivalents and restricted cash	(375,541)		95,155
Effects of exchange rates on cash and cash equivalents	(20,479)		(7,281)
Cash and cash equivalents and restricted cash, beginning of period	760,602		712,583
Cash and cash equivalents and restricted cash, end of period	$	364,582	$	800,457

See the accompanying notes to Condensed Consolidated Financial Statements.

7

GARTNER, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 1 — Business and Basis of Presentation

Business. Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s mission critical priorities.

Segments. Gartner delivers its products and services globally through three business segments: Research, Conferences and Consulting. Revenues and other financial information for the Company’s segments are discussed in Note 7 — Segment Information.

Basis of presentation. The accompanying interim Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 270 for interim financial information and with the applicable instructions of U.S. Securities and Exchange Commission (“SEC”) Rule 10-01 of Regulation S-X on Form 10-Q, and should be read in conjunction with the consolidated financial statements and related notes of the Company in its Annual Report on Form 10-K for the year ended December 31, 2021.

The fiscal year of Gartner is the twelve-month period from January 1 through December 31. In the opinion of management, all normal recurring accruals and adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented herein have been included. The results of operations for the three and six months ended June 30, 2022 may not be indicative of the results of operations for the remainder of 2022 or beyond. When used in these notes, the terms “Gartner,” the “Company,” “we,” “us,” or “our” refer to Gartner, Inc. and its consolidated subsidiaries.

Principles of consolidation. The accompanying interim Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated.

Use of estimates. The preparation of the accompanying interim Condensed Consolidated Financial Statements requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of fees receivable, goodwill, intangible assets and other long-lived assets, as well as tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax expense or benefit, performance-based compensation charges, depreciation and amortization. Management believes its use of estimates in these interim Condensed Consolidated Financial Statements to be reasonable.

Management continually evaluates and revises its estimates using historical experience and other factors, including the general economic environment and actions it may take in the future. Management adjusts these estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time. As a result, differences between estimates and actual results could be material and would be reflected in the Company’s consolidated financial statements in future periods.

Cash and cash equivalents and restricted cash. Below is a table presenting the beginning-of-period and end-of-period cash amounts from the Company’s Condensed Consolidated Balance Sheets and the total cash amounts presented in the Condensed Consolidated Statements of Cash Flows (in thousands).

	June 30,		December 31,
	2022		2021
Cash and cash equivalents	$	360,473	$	756,493
Restricted cash classified in (1):
Prepaid expenses and other current assets	4,109		4,109
Cash and cash equivalents and restricted cash	$	364,582	$	760,602

(1)Restricted cash consists of escrow accounts established in connection with certain of the Company’s business acquisitions. Generally, such cash is restricted to use due to provisions contained in the underlying stock or asset purchase agreement.

8

The Company will disburse the restricted cash to the sellers of the businesses upon satisfaction of any contingencies described in such agreements (e.g., potential indemnification claims).

Revenue recognition. Revenue is recognized in accordance with the requirements of FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). Revenue is only recognized when all of the required criteria for revenue recognition have been met. The accompanying Condensed Consolidated Statements of Operations present revenue net of any sales or value-added taxes that we collect from customers and remit to government authorities. ASC Topic 270 requires certain disclosures in interim financial statements around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Note 4 — Revenue and Related Matters provides additional information regarding the Company’s revenues.

Gain on event cancellation insurance claims. In May 2021, the Company received $150.0 million of proceeds related to 2020 event cancellation insurance claims, and recorded a pre-tax gain of $135.5 million. The Company does not record any gain on insurance claims in excess of expenses incurred until the receipt of the insurance proceeds is deemed to be realizable.

Adoption of new accounting standards. The Company adopted the accounting standard described below during the six months ended June 30, 2022.

Business Combinations — In October 2021, the FASB issued ASU No. 2021-08, Business Combinations, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU No. 2021-08”). ASU No. 2021-08 provides guidance for a business combination on how to recognize and measure contract assets and contract liabilities from revenue contracts with customers and other contracts that apply the provisions of ASC Topic 606, Revenue from Contracts with Customers. Specifically, the proposed amendments would require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606. Generally, this would result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements (if the acquiree prepared financial statements in accordance with U.S. GAAP). The rule will be effective for public entities on January 1, 2023, with early adoption permitted. Gartner has elected to adopt ASU No. 2021-08 effective January 1, 2022. ASU No. 2021-08 will not impact acquired contract assets or liabilities from business combinations occurring prior to January 1, 2022, and the impact in future periods will depend on the contract assets and contract liabilities acquired in future business combinations.

Accounting standards issued but not yet adopted. The FASB has issued accounting standards that have not yet become effective and may impact the Company’s consolidated financial statements or related disclosures in future periods. Those standards and their potential impact are discussed below.

Accounting standard effective immediately upon voluntary election by Gartner

Reference Rate Reform — In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform—Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides that an entity can elect not to apply certain required modification accounting in U.S. GAAP to contracts where all changes to the critical terms relate to reference rate reform (e.g., the expected discontinuance of LIBOR and the transition to an alternative reference interest rate). In addition, the rule provides optional expedients and exceptions that enable entities to continue to apply hedge accounting for hedging relationships where one or more of the critical terms change due to reference rate reform. The rule became effective for all entities as of March 12, 2020 and will generally no longer be available to apply after December 31, 2022. The Company is currently evaluating the potential impact of ASU No. 2020-04 on its consolidated financial statements, including the rule’s potential impact on any debt modifications or other contractual changes in the future that may result from reference rate reform.

Accounting standard effective later in 2022

Government Assistance — In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance (“ASU No. 2021-10”). ASU No. 2021-10 requires business entities to annually disclose information about certain government assistance they receive. The rule will be effective for public entities for annual periods beginning after December 15, 2021. The adoption of ASU No. 2021-10 is currently not expected to have a material impact on the Company’s financial statement disclosures.

9

Note 2 — Acquisition

On June 17, 2021, the Company acquired 100% of the outstanding capital stock of Pulse Q&A Inc. (“Pulse”), a privately-held company based in San Francisco, California, for an aggregate purchase price of $29.9 million. Pulse is a technology-enabled community platform.

During 2021, the Company paid $22.9 million in cash for Pulse after considering the cash acquired with the business, amounts held in escrow and certain other purchase price adjustments at closing. In addition to the purchase price, the Company may also be required to pay up to $4.5 million in cash based on the continuing employment of certain key employees. Such amount will be recognized as compensation expense over three years and reported in Acquisition and integration charges in the Condensed Consolidated Statements of Operations.

The Company recorded $31.0 million of goodwill and finite-lived intangible assets and $1.1 million of liabilities on a net basis for the Pulse acquisition.

Note 3 — Goodwill and Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair values of the tangible and identifiable intangible net assets acquired. Evaluations of the recoverability of goodwill are performed in accordance with FASB ASC Topic 350, which requires an annual assessment of potential goodwill impairment at the reporting unit level and whenever events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable.

When performing the annual assessment of the recoverability of goodwill, the Company initially performs a qualitative analysis evaluating whether any events or circumstances occurred or exist that provide evidence that it is more likely than not that the fair value of any of the Company’s reporting units is less than the related carrying amount. If the Company does not believe that it is more likely than not that the fair value of any of the Company’s reporting units is less than the related carrying amount, then no quantitative impairment test is performed. However, if the results of the qualitative assessment indicate that it is more likely than not that the fair value of a reporting unit is less than its respective carrying amount, then a quantitative impairment test is performed. Evaluating the recoverability of goodwill requires judgments and assumptions regarding future trends and events. As a result, both the precision and reliability of the estimates are subject to uncertainty.

The Company’s most recent annual impairment test of goodwill was a qualitative analysis conducted during the quarter ended September 30, 2021 that indicated no impairment. Subsequent to completing the 2021 annual impairment test, there were no events or changes in circumstances noted that required an interim impairment test.

The table below presents changes to the carrying amount of goodwill by segment during the six months ended June 30, 2022 (in thousands).

	Research		Conferences		Consulting		Total
Balance at December 31, 2021 (1)	$	2,670,934	$	184,021	$	96,362	$	2,951,317
Foreign currency translation impact	(6,795)		(79)		(1,186)		(8,060)
Balance at June 30, 2022 (1)	$	2,664,139	$	183,942	$	95,176	$	2,943,257

(1)The Company does not have any accumulated goodwill impairment losses.

10

Finite-Lived Intangible Assets

The tables below present reconciliations of the carrying amounts of the Company’s finite-lived intangible assets as of the dates indicated (in thousands).

June 30, 2022	Customer Relationships		Technology-related		Other		Total
Gross cost at December 31, 2021	$	1,096,358	$	61,216	$	10,436	$	1,168,010
Foreign currency translation impact	(31,141)		(458)		—		(31,599)
Gross cost	1,065,217		60,758		10,436		1,136,411
Accumulated amortization (1)	(445,119)		(40,823)		(5,101)		(491,043)
Balance at June 30, 2022	$	620,098	$	19,935	$	5,335	$	645,368

December 31, 2021	Customer Relationships		Technology-related		Other		Total
Gross cost	$	1,096,358	$	61,216	$	10,436	$	1,168,010
Accumulated amortization (1)	(413,266)		(35,727)		(4,599)		(453,592)
Balance at December 31, 2021	$	683,092	$	25,489	$	5,837	$	714,418

(1) Finite-lived intangible assets are amortized using the straight-line method over the following periods: Customer relationships—6 to 13 years; Technology-related—3 to 7 years; and Other—4 to 11 years.

Amortization expense related to finite-lived intangible assets was $24.8 million and $26.2 million during the three months ended June 30, 2022 and 2021, respectively, and $49.9 million and $56.7 million during the six months ended June 30, 2022 and 2021, respectively. The estimated future amortization expense by year for finite-lived intangible assets is presented in the table below (in thousands).

2022 (remaining six months)	$	49,113
2023	98,211
2024	91,066
2025	80,550
2026	77,876
Thereafter	248,552
	$	645,368

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Note 4 — Revenue and Related Matters

Disaggregated Revenue — The Company’s disaggregated revenue by reportable segment is presented in the tables below for the periods indicated (in thousands).

By Primary Geographic Market (1)

Three Months Ended June 30, 2022
Primary Geographic Market	Research		Conferences		Consulting		Total
United States and Canada	$	752,670	$	87,267	$	72,816	$	912,753
Europe, Middle East and Africa	255,417		21,036		34,047		310,500
Other International	134,242		5,222		13,804		153,268
Total revenues	$	1,142,329	$	113,525	$	120,667	$	1,376,521
Three Months Ended June 30, 2021
Primary Geographic Market	Research		Conferences		Consulting		Total
United States and Canada	$	646,432	$	40,328	$	59,605	$	746,365
Europe, Middle East and Africa	236,756		14,468		35,459		286,683
Other International	120,050		3,383		10,838		134,271
Total revenues	$	1,003,238	$	58,179	$	105,902	$	1,167,319
Six Months Ended June 30, 2022
Primary Geographic Market	Research		Conferences		Consulting		Total
United States and Canada	$	1,493,199	$	94,919	$	141,605	$	1,729,723
Europe, Middle East and Africa	518,546		22,274		66,491		607,311
Other International	266,964		6,686		28,577		302,227
Total revenues	$	2,278,709	$	123,879	$	236,673	$	2,639,261
Six Months Ended June 30, 2021
Primary Geographic Market	Research		Conferences		Consulting		Total
United States and Canada	$	1,277,765	$	59,927	$	117,091	$	1,454,783
Europe, Middle East and Africa	466,957		17,181		65,821		549,959
Other International	238,248		5,873		22,494		266,615
Total revenues	$	1,982,970	$	82,981	$	205,406	$	2,271,357

(1)Revenue is reported based on where the sale is fulfilled.

The Company’s revenue is generated primarily through direct sales to clients by domestic and international sales forces and a network of independent international sales agents. Most of the Company’s products and services are provided on an integrated worldwide basis and, because of this integrated delivery approach, it is not practical to precisely separate the Company’s revenue by geographic location. Accordingly, revenue information presented in the above tables is based on internal allocations, which involve certain management estimates and judgments.

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By Timing of Revenue Recognition

Three Months Ended June 30, 2022
Timing of Revenue Recognition	Research		Conferences		Consulting		Total
Transferred over time (1)	$	1,037,864	$	—	$	95,201	$	1,133,065
Transferred at a point in time (2)	104,465		113,525		25,466		243,456
Total revenues	$	1,142,329	$	113,525	$	120,667	$	1,376,521
Three Months Ended June 30, 2021
Timing of Revenue Recognition	Research		Conferences		Consulting		Total
Transferred over time (1)	$	916,754	$	—	$	85,989	$	1,002,743
Transferred at a point in time (2)	86,484		58,179		19,913		164,576
Total revenues	$	1,003,238	$	58,179	$	105,902	$	1,167,319

Six Months Ended June 30, 2022
Timing of Revenue Recognition	Research		Conferences		Consulting		Total
Transferred over time (1)	$	2,063,674	$	—	$	191,637	$	2,255,311
Transferred at a point in time (2)	215,035		123,879		45,036		383,950
Total revenues	$	2,278,709	$	123,879	$	236,673	$	2,639,261
Six Months Ended June 30, 2021
Timing of Revenue Recognition	Research		Conferences		Consulting		Total
Transferred over time (1)	$	1,810,841	$	—	$	170,331	$	1,981,172
Transferred at a point in time (2)	172,129		82,981		35,075		290,185
Total revenues	$	1,982,970	$	82,981	$	205,406	$	2,271,357

(1)Research revenues are recognized in connection with performance obligations that are satisfied over time using a time-elapsed output method to measure progress. Consulting revenues are recognized over time using labor hours as an input measurement basis.

(2)The revenues in this category are recognized in connection with performance obligations that are satisfied at the point in time that the contractual deliverables are provided to the customer.

Performance Obligations — For customer contracts that are greater than one year in duration, the aggregate amount of the transaction price allocated to performance obligations that were unsatisfied (or partially unsatisfied) as of June 30, 2022 was approximately $4.7 billion. The Company expects to recognize $1.5 billion, $2.2 billion and $942.2 million of this revenue (most of which pertains to Research) during the remainder of 2022, the year ending December 31, 2023 and thereafter, respectively. The Company applies a practical expedient that is permitted under ASC Topic 606 and, accordingly, it does not disclose such performance obligation information for customer contracts that have original durations of one year or less. The Company’s performance obligations for contracts meeting this ASC Topic 606 disclosure exclusion primarily include: (i) stand-ready services under Research subscription contracts; (ii) holding conferences and meetings where attendees and exhibitors can participate; and (iii) providing customized Consulting solutions for clients under fixed fee and time and materials engagements. The remaining duration of these performance obligations is generally less than one year, which aligns with the period that the parties have enforceable rights and obligations under the affected contracts.

Customer Contract Assets and Liabilities — The timing of the recognition of revenue and the amount and timing of the Company’s billings and cash collections, including upfront customer payments, result in the recognition of both assets and liabilities on the Company’s Condensed Consolidated Balance Sheets. The table below provides information regarding certain of the Company’s balance sheet accounts that pertain to its contracts with customers (in thousands).

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	June 30,		December 31,
	2022		2021
Assets:
Fees receivable, gross (1)	$	1,181,496	$	1,371,680
Contract assets recorded in Prepaid expenses and other current assets (2)	$	26,666	$	20,054
Contract liabilities:
Deferred revenues (current liability) (3)	$	2,396,143	$	2,238,035
Non-current deferred revenues recorded in Other liabilities (3)	35,656		48,176
Total contract liabilities	$	2,431,799	$	2,286,211

(1)Fees receivable represent an unconditional right to payment from the Company’s customers and include both billed and unbilled amounts.

(2)Contract assets represent recognized revenue for which the Company does not have an unconditional right to payment as of the balance sheet date because the project may be subject to a progress billing milestone or some other billing restrictions.

(3)Deferred revenues represent amounts (i) for which the Company has received an upfront customer payment or (ii) that pertain to recognized fees receivable. Both situations occur before the completion of the Company’s performance obligation(s).

The Company recognized revenue of $956.4 million and $817.3 million during the three months ended June 30, 2022 and 2021, respectively, and $1.4 billion and $1.3 billion during the six months ended June 30, 2022 and 2021, respectively, that was attributable to deferred revenues that were recorded at the beginning of each such period. Those amounts primarily consisted of Research revenues that were recognized ratably as control of the goods or services passed to the customer during the reporting periods. During each of the three and six months ended June 30, 2022 and 2021, the Company did not record any material impairments related to its contract assets.

Note 5 — Computation of Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS reflects the potential dilution of securities that could share in earnings. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be anti-dilutive.

The table below sets forth the calculation of basic and diluted income per share for the periods indicated (in thousands, except per share data).

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Numerator:
Net income used for calculating basic and diluted income per share	$	204,925	$	271,236	$	377,440	$	435,336
Denominator:
Weighted average common shares used in the calculation of basic income per share	80,271		85,712		81,145		87,032
Dilutive effect of outstanding awards associated with stock-based compensation plans (1)	703		877		866		889
Shares used in the calculation of diluted income per share	80,974		86,589		82,011		87,921
Basic income per share	$	2.55	$	3.16	$	4.65	$	5.00
Diluted income per share	$	2.53	$	3.13	$	4.60	$	4.95

(1)Certain outstanding awards associated with stock-based compensation plans were not included in the computation of diluted income per share because the effect would have been anti-dilutive. These anti-dilutive outstanding awards associated with stock-based compensation plans totaled approximately 0.4 million and 0.1 million for the three months ended June 30, 2022 and 2021, respectively, and 0.3 million and 0.1 million for the six months ended June 30, 2022 and 2021, respectively.

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Note 6 — Stock-Based Compensation

The Company grants stock-based compensation awards as an incentive for employees and directors to contribute to the Company’s long-term success. The Company currently awards stock-settled stock appreciation rights, service-based and performance-based restricted stock units, and common stock equivalents. As of June 30, 2022, the Company had 3.9 million shares of its common stock, par value $0.0005 per share, (the “Common Stock”) available for stock-based compensation awards under its current Long-Term Incentive Plan as amended and restated in January 2019 (the “Plan”).

The tables below summarize the Company’s stock-based compensation expense by award type and expense category line item during the periods indicated (in millions).

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Award type	2022		2021		2022		2021
Stock appreciation rights	$	2.5	$	2.0	$	4.4	$	4.0
Restricted stock units (2)	21.8		24.0		51.8		57.9
Common stock equivalents	0.2		0.2		0.4		0.4
Total (1)	$	24.5	$	26.2