STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2011

STOCKHOLDERS' EQUITY

7 — STOCKHOLDERS’ EQUITY

Common stock. Holders of Gartner’s Common Stock, par value $.0005 per share (“Common Stock”) are entitled to one vote per share on all matters to be voted by stockholders. The Company does not currently pay cash dividends on its Common Stock. Also, our credit arrangement contains a negative covenant which may limit our ability to pay dividends.

The following table summarizes transactions relating to Common Stock for the three years’ ending December 31, 2011:

	Issued Shares		Treasury Stock Shares
Balance at December 31, 2008		156,234,415		62,353,575
Issuances under stock plans		—		(2,302,935	)
Purchases for treasury		—		306,032
Balance at December 31, 2009		156,234,415		60,356,672
Issuances under stock plans		—		(4,029,673	)
Purchases for treasury		—		3,918,719
Balance at December 31, 2010		156,234,415		60,245,718
Issuances under stock plans		—		(3,244,705	)
Purchases for treasury (1)		—		5,890,238
Balance at December 31, 2011		156,234,415		62,891,251

(1) Includes 2,148,434 shares the Company repurchased directly from ValueAct Capital Master Fund, L.P. (“ValueAct”) in two separate transactions during 2011. The total cost of the shares repurchased directly from ValueAct was $75.2 million.

Share repurchase program. The Company has a $500.0 million share repurchase program, of which $293.5 million remained available for share repurchases as of December 31, 2011. Repurchases may be made from time-to-time through open market purchases, private transactions, tender offers or other transactions. The amount and timing of repurchases will be subject to the availability of stock, prevailing market conditions, the trading price of the stock, the Company’s financial performance and other conditions. Repurchases may also be made from time-to-time in connection with the settlement of the Company’s shared-based compensation awards. Repurchases may be funded from cash flow from operations or borrowings.

The Company paid cash of $212.0 million, $99.8 million, and $3.7 million, in 2011, 2010, and 2009, respectively, for common stock repurchases. The $212.0 million paid for share repurchases in 2011 includes the cost of the shares repurchased directly from ValueAct.