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 June 30, 2015 Research Consulting Events Consolidated Revenues $ 385,718 $ 88,336 $ 73,882 $ 547,936 Gross contribution 269,846 33,255 39,442 342,543 Corporate and other expenses (257,323 ) Operating income $ 85,220 Three Months Ended June 30, 2014 Research Consulting Events Consolidated Revenues $ 358,495 $ 93,488 $ 67,837 $ 519,820 Gross contribution 248,263 36,235 34,232 318,730 Corporate and other expenses (236,969 ) Operating income $ 81,761 Six Months Ended June 30, 2015 Research Consulting Events Consolidated Revenues $ 766,808 $ 165,128 $ 87,186 $ 1,019,122 Gross contribution 536,911 59,582 41,884 638,377 Corporate and other expenses (504,475 ) Operating income $ 133,902 Six Months Ended June 30, 2014 Research Consulting Events Consolidated Revenues $ 706,609 $ 177,759 $ 82,154 $ 966,522 Gross contribution 494,365 66,573 37,195 598,133 Corporate and other expenses (457,202 ) Operating income $ 140,931 The following table provides a reconciliation of total segment gross contribution to net income for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total segment gross contribution $ 342,543 $ 318,730 $ 638,377 $ 598,133 Costs and expenses: Cost of services and product development - unallocated (1) 5,102 2,088 7,512 5,610 Selling, general and administrative 237,991 218,537 467,513 423,154 Depreciation and amortization 10,547 9,700 20,675 18,438 Acquisition and integration charges 3,683 6,644 8,775 10,000 Operating income 85,220 81,761 133,902 140,931 Interest expense and other 5,708 2,505 10,150 4,984 Provision for income taxes 28,357 26,216 44,246 45,171 Net income $ 51,155 $ 53,040 $ 79,506 $ 90,776 (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. |