Operating Segment and Enterprise Wide Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Operating Segment and Enterprise Wide Reporting

Note 12 - Operating Segment and Enterprise Wide Reporting

On January 1, 2020, the Company realigned its internal management and reporting as SiriusDecisions no longer operated under a separate management structure. As described in the Company’s Form 8-K filed on April 2, 2020, Forrester’s Chief Product Officer resigned from the Company effective April 17, 2020. Subsequently, the Chief Product Officer position was eliminated and the Company reorganized its operations to reflect three lines of business: Research, Consulting, and Events. As a result of these changes, on May 1, 2020, the Company realigned its internal reporting into Research, Consulting, and Events. The realignments eliminated the Products and SiriusDecisions segments as the product lines and organizations supporting the related revenues began operating under the new management structure. Prior period amounts have been revised to conform to the current presentation.

The Research segment includes the revenues of the Research, Connect, and Analytics products and the cost of the organizations responsible for developing and delivering these products. In addition, this segment includes Consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research and analytics analysts. The costs of the product management organization responsible for product pricing and packaging, and the launch of new products, is included in this segment.

The Consulting segment includes the revenues and the related costs of the Company’s consulting organization. The consulting organization delivers a majority of the Company’s consulting project revenue and certain advisory services.

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events.

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 excludes: 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, interest and other expense, and gains (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 review or evaluate assets as part of segment performance. Accordingly, the Company does not identify or allocate assets by reportable segment.

The following tables present information about reportable segments, including the Company’s disaggregation of revenue by product (in thousands):

	Research Segment			Consulting Segment			Events Segment			Consolidated
Year Ended December 31, 2020
Research revenues
Research revenues	$	219,670		$	—		$	—		$	219,670
Connect revenues		54,530			—			—			54,530
Analytics revenues		20,285			—			—			20,285
Total research revenues		294,485			—			—			294,485
Consulting revenues		57,276			87,086			—			144,362
Events revenues		—			—			10,137			10,137
Total segment revenues		351,761			87,086			10,137			448,984
Segment expenses		(110,843	)		(40,168	)		(8,231	)		(159,242	)
Selling, marketing, administrative and other expenses											(248,105	)
Amortization of intangible assets											(19,683	)
Acquisition and integration costs											(5,779	)
Interest expense, other expense, and gains on investments											(3,242	)
Income before income taxes										$	12,933

	Research Segment			Consulting Segment			Events Segment			Consolidated
Year Ended December 31, 2019
Research revenues
Research revenues	$	219,189		$	—		$	—		$	219,189
Connect revenues		56,224			—			—			56,224
Analytics revenues		23,322			—			—			23,322
Total research revenues		298,735			—			—			298,735
Consulting revenues		60,758			75,194			—			135,952
Events revenues		—			—			27,010			27,010
Total segment revenues		359,493			75,194			27,010			461,697
Segment expenses		(120,882	)		(38,192	)		(18,968	)		(178,042	)
Selling, marketing, administrative and other expenses											(253,163	)
Amortization of intangible assets											(22,619	)
Acquisition and integration costs											(8,948	)
Interest expense, other expense, and gains on investments											(8,524	)
Loss before income taxes										$	(9,599	)

	Research Segment			Consulting Segment			Events Segment			Consolidated
Year Ended December 31, 2018
Research revenues
Research revenues	$	157,112		$	—		$	—		$	157,112
Connect revenues		51,377			—			—			51,377
Analytics revenues		19,910			—			—			19,910
Total research revenues		228,399			—			—			228,399
Consulting revenues		56,863			58,842			—			115,705
Events revenues		—			—			13,471			13,471
Total segment revenues		285,262			58,842			13,471			357,575
Segment expenses		(88,015	)		(30,957	)		(10,102	)		(129,074	)
Selling, marketing, administrative and other expenses											(201,127	)
Amortization of intangible assets											(1,162	)
Acquisition and integration costs											(3,787	)
Interest expense, other income, and gains on investments											1,100
Income before income taxes										$	23,525

 Net long-lived tangible assets by location as of December 31, 2020 and 2019 are as follows (in thousands):

	2020		2019
United States	$	24,645	$	26,709
United Kingdom		261		578
Europe (excluding United Kingdom)		78		97
Asia Pacific		2,048		2,553
Total	$	27,032	$	29,937

Revenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2020, 2019, and 2018 are as follows (dollars in thousands):

	2020		2019		2018
United States	$	356,288	$	362,867	$	274,151
Europe (excluding United Kingdom)		34,897		32,585		29,741
United Kingdom		15,741		21,316		15,273
Canada		14,005		17,246		15,569
Asia Pacific		22,969		22,842		17,839
Other		5,084		4,841		5,002
Total	$	448,984	$	461,697	$	357,575

	2020			2019			2018
United States		79	%		79	%		77	%
Europe (excluding United Kingdom)		8			7			8
United Kingdom		4			4			4
Canada		3			4			4
Asia Pacific		5			5			5
Other		1			1			2
Total		100	%		100	%		100	%