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Operating Segments
 3 Months Ended
Mar. 31, 2012
Operating Segments [Abstract]  
Operating Segments

Note 9 — Operating Segments

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, which are considered operating segments, are: Business Technology (“BT”), Technology Industry (“TI”), and Marketing and Strategy (“M&S”). In addition, the Company’s Events segment supports all three client groups. All of the client groups generate revenues through sales of research, 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 sales of 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, and amortization of intangibles. In the first quarter of 2012, the Company modified its calculation of segment direct margin to exclude certain marketing costs and to include certain business development costs. In addition, in the first quarter of 2012 certain research analysts and their related consulting revenue and expenses were transferred from the M&S and TI client groups to the BT client group. Accordingly, the 2011 amounts have been reclassified to conform to the current presentation. The accounting policies used by the reportable segments are the same as those used in the consolidated financial statements.

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 in making decisions on the allocation of resources.

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

 

                                         
    BT     TI     M&S     Events     Consolidated  

Three Months Ended March 31, 2012

                                        

Revenue

   $ 27,123     $ 20,454     $ 21,928     $ 755     $ 70,260  

Direct margin

     16,614       16,205       14,068       (293 )      46,594  

Selling, marketing, administrative and other expenses

                                     (41,352 ) 

Amortization of intangible assets

                                     (614 ) 
                                   

 

 

  

Income from operations

                                   $ 4,628  
                                   

 

 

  

 

                                         
    BT     TI     M&S     Events     Consolidated  

Three Months Ended March 31, 2011

                                        

Revenue

   $ 25,235     $ 18,481     $ 20,021     $ 2,005     $ 65,742  

Direct margin

     15,737       14,734       12,460       588       43,519  

Selling, marketing, administrative and other expenses

                                     (38,628 ) 

Amortization of intangible assets

                                     (693 ) 
                                   

 

 

  

Income from operations

                                   $ 4,198