Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company manages its business through three reportable segments: Research, Consulting and Events. Research consists primarily of subscription-based research products, access to research inquiry, peer networking services, and membership programs. Consulting consists primarily of consulting, measurement engagements, and strategic advisory services. Events consists of various symposia, conferences, and exhibitions.

The Company evaluates reportable segment performance and allocates resources based on gross contribution margin. Gross contribution, as presented in the table below, is defined as operating income excluding certain Cost of services and product development expenses, Selling, general and administrative expense, 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 in the allocation of resources.

The following tables present information about the Company’s reportable segments for the periods indicated (in thousands):

Three Months Ended September 30, 2014	Research		Consulting		Events		Consolidated
Revenues	$	365,334	$	82,300	$	23,306	$	470,940
Gross contribution	251,113		24,774		6,946		282,833
Corporate and other expenses							(233,442		)
Operating income							$	49,391

Three Months Ended September 30, 2013	Research		Consulting		Events		Consolidated
Revenues	$	316,518	$	70,149	$	24,038	$	410,705
Gross contribution	220,329		21,114		7,095		248,538
Corporate and other expenses							(189,795		)
Operating income							$	58,743

Nine Months Ended September 30, 2014	Research		Consulting		Events		Consolidated
Revenues	$	1,071,943	$	260,059	$	105,460	$	1,437,462
Gross contribution	745,477		91,347		44,141		880,965
Corporate and other expenses							(690,643		)
Operating income							$	190,322

Nine Months Ended September 30, 2013	Research		Consulting		Events		Consolidated
Revenues	$	938,082	$	228,710	$	96,714	$	1,263,506
Gross contribution	648,954		76,836		37,318		763,108
Corporate and other expenses							(576,373		)
Operating income							$	186,735

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014		2013
Total segment gross contribution	$	282,833		$	248,538		$	880,965	$	763,108
Costs and expenses:
Cost of services and product development - unallocated (1), (2)	(48		)	(432		)	5,561		2,978
Selling, general and administrative	217,025			181,546			640,179		547,653
Depreciation and amortization	10,450			8,609			28,888		25,464
Acquisition and integration charges	6,015			72			16,015		278
Operating income	49,391			58,743			190,322		186,735
Interest expense and other	2,943			2,119			7,927		6,768
Provision for income taxes	12,602			18,430			57,773		58,584
Net income	$	33,846		$	38,194		$	124,622	$	121,383

(1) The unallocated amounts consist of certain bonus and related fringe expenses recorded in Consolidated cost of services and product development expense that are not allocated to segment expense. The Company's policy is to only allocate bonus and related fringe charges to segments for up to 100% of the segment employee's target bonus. Amounts above 100% are absorbed by corporate.

(2) Amounts in parentheses in the three months ended periods result from adjustments to the year-to-date balances.