Segment Information

9 Months Ended

Sep. 30, 2015

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 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 operating information about the Company’s reportable segments for the periods indicated (in thousands):

Three Months Ended September 30, 2015	Research		Consulting		Events		Consolidated
Revenues	$	396,179	$	74,686	$	29,301	$	500,166
Gross contribution	274,967		21,593		11,543		308,103
Corporate and other expenses							(255,629		)
Operating income							$	52,474

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

Nine Months Ended September 30, 2015	Research		Consulting		Events		Consolidated
Revenues	$	1,162,987	$	239,814	$	116,487	$	1,519,288
Gross contribution	811,877		81,175		53,427		946,479
Corporate and other expenses							(760,103		)
Operating income							$	186,376

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

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,
	2015		2014			2015		2014
Total segment gross contribution	$	308,103	$	282,833		$	946,479	$	880,965
Costs and expenses:
Cost of services and product development - unallocated (1)	1,539		(48		)	9,050		5,561
Selling, general and administrative	236,355		217,025			703,868		640,179
Depreciation and amortization	11,247		10,450			31,922		28,888
Acquisition and integration charges	6,488		6,015			15,263		16,015
Operating income	52,474		49,391			186,376		190,322
Interest expense and other	682		2,943			10,832		7,927
Provision for income taxes	21,426		12,602			65,672		57,773
Net income	$	30,366	$	33,846		$	109,872	$	124,622

(1) The unallocated amounts consist of certain bonus and related fringe costs 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.