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Operating Segment and Enterprise Wide Reporting
 12 Months Ended
Dec. 31, 2011
Operating Segment and Enterprise Wide Reporting [Abstract]  
Operating Segment and Enterprise Wide Reporting

(11)    Operating Segment and Enterprise Wide Reporting

Forrester is organized into three client groups with each client group responsible for writing relevant research for the roles within the client organization on a worldwide basis. The three client groups are: Business Technology (“BT”) (formerly Information Technology), Technology Industry (“TI”), and Marketing and Strategy (“M&S”). All of the client groups generate revenues through sales of research and advisory and other service offerings targeted at specific roles within their targeted clients. Each of the client groups consists of research personnel focused primarily on issues relevant to particular roles and to the day-to-day responsibilities of persons within the roles. Amounts included in the “Events” segment relate to the operations of the events production department. Revenue reported in the Events segment consists primarily of sponsorships and event tickets to Forrester events.

Forrester evaluates reportable segment performance and allocates resources based on direct margin. Direct margin, as presented below, is defined as operating income excluding sales expenses, certain marketing and fulfillment expenses, stock-based compensation expense, general and administrative expenses, depreciation expense, amortization of intangible assets and reorganization costs. In the first quarter of 2010, the Company modified its calculation of segment direct margin to exclude all sales expenses. Accordingly, the 2009 amounts have been reclassified to conform to the current presentation.

Forrester does not identify or allocate assets, including capital expenditures, by operating segment. Accordingly, assets are not being reported by segment because the information is not available by segment and is not reviewed in the evaluation of performance or making decisions in the allocation of resources.

 

The following tables present information about reportable segments (in thousands).

 

                                         
    BT     TI     M&S     Events     Consolidated  

Year ended December 31, 2011

                                        

Revenue

   $ 99,850     $ 84,984     $ 85,609     $ 13,173     $ 283,616  

Direct margin

     67,139       60,587       52,769       5,765       186,260  

Selling, marketing, administrative and other expenses

                                     (146,701 ) 
Amortization of intangible assets                                     (2,562 ) 
                                   

 

 

  
Income from operations                                   $ 36,997  
                                   

 

 

  

 

                                         
    BT     TI     M&S     Events     Consolidated  

Year ended December 31, 2010

                                        

Revenue

   $ 93,414     $ 74,799     $ 71,313     $ 11,200     $ 250,726  

Direct margin

     64,854       54,859       43,264       4,753       167,730  

Selling, marketing, administrative and other expenses

                                     (133,360 ) 
Amortization of intangible assets                                     (3,620 ) 
                                   

 

 

  
Income from operations                                   $ 30,750  
                                   

 

 

  

 

                                         
    BT     TI     M&S     Events     Consolidated  

Year ended December 31, 2009

                                        

Revenue

   $ 92,950     $ 66,848     $ 63,910     $ 9,644     $ 233,352  

Direct margin

     65,073       49,163       36,089       3,183       153,508  

Selling, marketing, administrative and other expenses

                                     (113,357 ) 

Amortization of intangible assets

                                     (2,290 ) 
Reorganization costs                                     (5,441 ) 
                                   

 

 

  
Income from operations                                   $ 32,420  
                                   

 

 

  

Net long-lived tangible assets by location as of December 31, 2011 and 2010 are as follows (in thousands):

 

                 
    2011     2010  

United States

   $ 46,928     $ 15,903  

United Kingdom

     2,997       3,423  

Europe (excluding United Kingdom)

     521       506  

Other

     2       6  
   

 

 

    

 

 

  
    $ 50,448     $ 19,838  
   

 

 

    

 

 

  

 

Net revenues by geographic destination and as a percentage of total revenues for the years ended December 31, 2011, 2010, and 2009 are as follows (in thousands):

 

                         
    2011     2010     2009  

United States

   $ 198,456     $ 180,065     $ 164,031  

Europe (excluding United Kingdom)

     37,205       31,188       31,011  

United Kingdom

     17,870       15,285       15,200  

Canada

     16,056       13,724       13,706  

Other

     14,029       10,464       9,404  
   

 

 

    

 

 

    

 

 

  
    $283,616     $250,726     $233,352  
   

 

 

    

 

 

    

 

 

  
       
    2011     2010     2009  

United States

     70 %      72 %      70 % 

Europe (excluding United Kingdom)

     13 %      12 %      13 % 

United Kingdom

     6 %      6 %      7 % 

Canada

     6 %      6 %      6 % 

Other

     5 %      4 %      4 % 
   

 

 

    

 

 

    

 

 

  
      100 %      100 %      100 %