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Operating Segment and Enterprise Wide Reporting | 12 Months Ended
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Dec. 31, 2012
Operating Segment and Enterprise Wide Reporting [Abstract] |
Operating Segment and Enterprise Wide Reporting | (11) Operating Segment and Enterprise Wide Reporting Forrester is organized into two client groups with each client group responsible for writing relevant research for the roles within the client organization on a worldwide basis. The two client groups, which are considered operating segments, are: Business Technology (“BT”) and Marketing and Strategy (“M&S”). In addition, the Company’s Events segment supports both client groups. Each client group generates revenues through sales of research, advisory and other service offerings targeted at specific roles within their targeted clients. Each client group 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 second quarter of 2012 the Company modified its management structure by consolidating its former Technology Industry client group segment into its two remaining client groups: BT and M&S. In addition, in the first quarter of 2012, the Company modified its calculation of segment direct margin to exclude certain marketing costs and Springboard Research integration costs and to include certain business development costs. Accordingly, the 2011 and 2010 amounts have been reclassified to conform to the current presentation. The accounting policies used by the 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 making decisions in the allocation of resources. The following tables present information about reportable segments (in thousands).
|  | BT |  |  | M&S |  |  | Events |  |  | Consolidated |
Year ended December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 159,216 |  |  | $ | 120,885 |  |  | $ | 12,829 |  |  | $ | 292,930 |
Direct margin |  |  | 105,288 |  |  |  | 82,225 |  |  |  | 3,941 |  |  |  | 191,454 |
Selling, marketing, administrative and other expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (156,929 | )
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,445 | )
Reorganization costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,421 | )
Other income and gains/losses on investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 851 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 31,510 |
|  | BT |  |  | M&S |  |  | Events |  |  | Consolidated |
Year ended December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 154,777 |  |  | $ | 115,666 |  |  | $ | 13,173 |  |  | $ | 283,616 |
Direct margin |  |  | 103,616 |  |  |  | 77,510 |  |  |  | 5,765 |  |  |  | 186,891 |
Selling, marketing, administrative and other expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (146,957 | )
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,562 | )
Reorganization costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (375 | )
Other income and gains/losses on investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,648 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 38,645 |
Year ended December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 143,992 |  |  | $ | 95,534 |  |  | $ | 11,200 |  |  | $ | 250,726 |
Direct margin |  |  | 97,699 |  |  |  | 63,002 |  |  |  | 4,753 |  |  |  | 165,454 |
Selling, marketing, administrative and other expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (131,084 | )
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,620 | )
Other income and gains/losses on investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,550 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 34,300 |
Net long-lived tangible assets by location as of December 31, 2012 and 2011 are as follows (in thousands):
|  | 2012 |  |  | 2011 |
United States |  | $ | 41,928 |  |  | $ | 46,928 |
United Kingdom |  |  | 2,626 |  |  |  | 2,997 |
Europe (excluding United Kingdom) |  |  | 313 |  |  |  | 521 |
Other |  |  | 1,263 |  |  |  | 2 |
|  | $ | 46,130 |  |  | $ | 50,448 |
Net revenues by geographic destination and as a percentage of total revenues for the years ended December 31, 2012, 2011, and 2010 are as follows (in thousands):
|  | 2012 |  |  | 2011 |  |  | 2010 |
United States |  | $ | 211,110 |  |  | $ | 198,456 |  |  | $ | 180,065 |
Europe (excluding United Kingdom) |  |  | 33,146 |  |  |  | 37,205 |  |  |  | 31,188 |
United Kingdom |  |  | 16,555 |  |  |  | 17,870 |  |  |  | 15,285 |
Canada |  |  | 16,742 |  |  |  | 16,056 |  |  |  | 13,724 |
Other |  |  | 15,377 |  |  |  | 14,029 |  |  |  | 10,464 |
|  | $ | 292,930 |  |  | $ | 283,616 |  |  | $ | 250,726 |
|  | 2012 |  |  | 2011 |  |  | 2010 |
United States |  |  | 72 | % |  |  | 70 | % |  |  | 72 | %
Europe (excluding United Kingdom) |  |  | 11 | % |  |  | 13 | % |  |  | 12 | %
United Kingdom |  |  | 6 | % |  |  | 6 | % |  |  | 6 | %
Canada |  |  | 6 | % |  |  | 6 | % |  |  | 6 | %
Other |  |  | 5 | % |  |  | 5 | % |  |  | 4 | %
|  |  | 100 | % |  |  | 100 | % |  |  | 100 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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