Operating Segment and Enterprise Wide Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Operating Segment and Enterprise Wide Reporting

(10) Operating Segment and Enterprise Wide Reporting

The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment. During 2013, the Company began to transition the delivery of project consulting to a dedicated project consulting organization. The transition was essentially complete at the end of 2014 such that the vast majority of project consulting has been and will continue to be delivered by the project consulting organization in 2015 and beyond.

The Product segment includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes the costs of the Company’s Data, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the Company’s project consulting services. During 2013 the Company began to hire dedicated consultants to transition the delivery of project consulting services from research personnel (included in the Research segment) to the new Project Consulting segment. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company does not identify or allocate assets, including capital expenditures, by operating segment. Accordingly, assets are not being reported by segment because the information is not available by segment and is not reviewed in the evaluation of performance or making decisions in the allocation of resources.

The following tables present information about reportable segments (in thousands):

						Project
	Products		Research			Consulting		Consolidated
Year Ended December 31, 2015
Research services revenues	$	210,268	$	—		$	—	$	210,268
Advisory services and events revenues		17,512		42,997			42,949		103,458
Total segment revenues		227,780		42,997			42,949		313,726
Segment expenses		38,615		51,510			27,320		117,445
Contribution margin (loss)		189,165		(8,513	)		15,629		196,281
Selling, marketing, administrative and other expenses									(172,130	)
Amortization of intangible assets									(891	)
Reorganization costs									(4,433	)
Other income and losses on investments									493
Income before income taxes								$	19,320

						Project
	Products		Research			Consulting		Consolidated
Year Ended December 31, 2014
Research services revenues	$	207,517	$	—		$	—	$	207,517
Advisory services and events revenues		20,759		48,658			35,128		104,545
Total segment revenues		228,276		48,658			35,128		312,062
Segment expenses		39,466		53,307			27,236		120,009
Contribution margin (loss)		188,810		(4,649	)		7,892		192,053
Selling, marketing, administrative and other expenses									(169,852	)
Amortization of intangible assets									(2,171	)
Reorganization costs									(1,817	)
Other income and losses on investments									176
Income before income taxes								$	18,389

						Project
	Products		Research			Consulting		Consolidated
Year Ended December 31, 2013
Research services revenues	$	202,843	$	—		$	—	$	202,843
Advisory services and events revenues		19,376		57,865			17,566		94,807
Total segment revenues		222,219		57,865			17,566		297,650
Segment expenses		36,384		58,685			15,700		110,769
Contribution margin (loss)		185,835		(820	)		1,866		186,881
Selling, marketing, administrative and other expenses									(160,913	)
Amortization of intangible assets									(2,230	)
Reorganization costs									(1,905	)
Other income and losses on investments									(1,841	)
Income before income taxes								$	19,992

Net long-lived tangible assets by location as of December 31, 2015 and 2014 are as follows (in thousands):

	2015		2014
United States	$	24,914	$	28,558
United Kingdom		1,176		1,625
Europe (excluding United Kingdom)		381		329
Other		1,098		1,662
Total	$	27,569	$	32,174

Net revenues by geographic destination and as a percentage of total revenues for the years ended December 31, 2015, 2014, and 2013 are as follows (in thousands):

	2015		2014		2013
United States	$	241,025	$	232,440	$	218,900
Europe (excluding United Kingdom)		24,607		30,257		30,956
United Kingdom		16,815		16,804		16,293
Canada		14,424		17,089		16,995
Other		16,855		15,472		14,506
Total	$	313,726	$	312,062	$	297,650

	2015			2014			2013
United States		77	%		74	%		74	%
Europe (excluding United Kingdom)		8	%		10	%		10	%
United Kingdom		5	%		5	%		5	%
Canada		5	%		6	%		6	%
Other		5	%		5	%		5	%
Total		100	%		100	%		100	%