Segment Information

3 Months Ended

Mar. 31, 2020

The Company's products and services are delivered through three segments – Research, Conferences and Consulting, as described below.

•Research provides trusted, objective insights and advice on the mission-critical priorities of leaders across all functional areas of an enterprise through reports, briefings, proprietary tools, access to our research experts, peer networking services and membership programs that enable our clients to drive organizational performance.

•Conferences provides business professionals across an organization the opportunity to learn, share and network. From our Gartner Symposium/Xpo series, to industry-leading conferences focused on specific business roles and topics, to peer-driven sessions, our offerings enable attendees to experience the best of Gartner insight and advice live.

•Consulting combines the power of Gartner market-leading research with custom analysis and on-the-ground support to help chief information officers and other senior executives driving technology-related strategic initiatives move confidently from insight to action.

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

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


Three Months Ended March 31, 2020	Research		Conferences		Consulting		Consolidated
Revenues	$	909,291	$	13,870	$	95,730	$	1,018,891
Gross contribution	653,469		(6,060)		29,382		676,791
Corporate and other expenses							(552,073)
Operating income							$	124,718


Three Months Ended March 31, 2019	Research		Conferences		Consulting		Consolidated
Revenues	$	825,374	$	51,932	$	93,138	$	970,444
Gross contribution	575,168		18,876		28,718		622,762
Corporate and other expenses							(573,963)
Operating income							$	48,799

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


	Three Months Ended
	March 31,
	2020		2019
Total segment gross contribution	$	676,791	$	622,762
Costs and expenses:
Cost of services and product development - unallocated (1)	(822)		(1,037)
Selling, general and administrative	496,639		518,770
Depreciation and amortization	54,696		53,458
Acquisition and integration charges	1,560		2,772
Operating income	124,718		48,799
Interest expense and other, net	(27,864)		(25,671)
Loss from divested operations	—		(2,075)
Less: Provision for income taxes	21,757		258
Net income	$	75,097	$	20,795

(1)The unallocated amounts consist of certain bonus and fringe costs recorded in consolidated Cost of services and product development that are not allocated to segment expense. The Company's policy is to allocate bonuses to segments at 100% of a segment employee's target bonus. Amounts above or below 100% are absorbed by corporate.