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Operating Segments
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Operating Segments

Note 9 — Operating Segments

At the end of 2013 the Company reorganized its fulfillment organization into a single global research organization and a single global product organization to better support its client base by facilitating better research collaboration and quality, promoting a more uniform client experience and improved customer satisfaction, and encouraging innovation. During 2013 the Company also established a dedicated consulting organization to provide research-based project consulting services to its clients, allowing the Company’s research personnel to spend additional time on writing research and providing shorter-term advisory services. As of January 1, 2014 the Company conformed its internal reporting to match the new organizational structure and as such is reporting segment information for the newly formed Research, Product and Project Consulting organizations. The 2013 segment amounts have been reclassified to conform to the current presentation.

The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s RoleView product. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment. During 2013, the Company began to transition the delivery of project consulting to a dedicated project consulting organization. The Company anticipates that the transition will be complete by the end of 2014 such that essentially all project consulting will be delivered by the project consulting organization in 2015.

The Product segment includes the costs of the product management organization that is responsible for pricing, packaging and the launch of new products. In addition, this segment includes the costs of the Company’s data, Forrester Leadership Boards and events organizations. Revenue in this segment includes all revenue for the Company (including RoleView) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the Company’s project consulting services. During 2013 the Company began to hire dedicated consultants to transition the delivery of project consulting services from research personnel (included in the Research segment) to the new Project Consulting segment. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income and gains/losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

 

     Products      Research     Project
Consulting		     Consolidated  

Three Months Ended June 30, 2014

          

Research services revenues

    $ 52,322       $ —        $ —        $ 52,322   

Advisory services and events revenues

      9,994         12,672        7,959        30,625   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total segment revenues

      62,316         12,672        7,959        82,947   

Segment expenses

      11,894         13,399        6,438        31,731   
  

 

 

     

 

 

    

 

 

    

 

 

  

Contribution margin (loss)

      50,422         (727 )      1,521        51,216   

Selling, marketing, administrative and other expenses

             (42,561 ) 

Amortization of intangible assets

             (536 ) 

Reorganization costs

             (1,039 ) 

Other income and gains/losses on investments

             122   
         

 

 

  

Income before income taxes

           $ 7,202   
         

 

 

  
     Products      Research     Project
Consulting		     Consolidated  

Three Months Ended June 30, 2013

          

Research services revenues

    $ 51,312       $ —        $ —        $ 51,312   

Advisory services and events revenues

      9,482         14,812        3,347        27,641   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total segment revenues

      60,794         14,812        3,347        78,953   

Segment expenses

      10,924         14,704        3,624        29,252   
  

 

 

     

 

 

    

 

 

    

 

 

  

Contribution margin (loss)

      49,870         108        (277 )      49,701   

Selling, marketing, administrative and other expenses

             (39,045 ) 

Amortization of intangible assets

             (554 ) 

Reorganization costs

             (314 ) 

Other income and gains/losses on investments

             353   
         

 

 

  

Income before income taxes

           $ 10,141   
         

 

 

  
     Products      Research     Project
Consulting		     Consolidated  

Six Months Ended June 30, 2014

          

Research services revenues

    $ 103,115       $ —        $ —        $ 103,115   

Advisory services and events revenues

      12,851         26,648        13,404        52,903   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total segment revenues

      115,966         26,648        13,404        156,018   

Segment expenses

      20,245         27,374        12,115        59,734   
  

 

 

     

 

 

    

 

 

    

 

 

  

Contribution margin (loss)

      95,721         (726 )      1,289        96,284   

Selling, marketing, administrative and other expenses

             (86,221 ) 

Amortization of intangible assets

             (1,075 ) 

Reorganization costs

             (1,888 ) 

Other income and gains/losses on investments

             95   
         

 

 

  

Income before income taxes

           $ 7,195   
         

 

 

  
     Products      Research     Project
Consulting		     Consolidated  

Six Months Ended June 30, 2013

          

Research services revenues

    $ 101,590       $ —        $ —        $ 101,590   

Advisory services and events revenues

      11,701         29,750        7,273        48,724   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total segment revenues

      113,291         29,750        7,273        150,314   

Segment expenses

      18,494         28,586        6,973        54,053   
  

 

 

     

 

 

    

 

 

    

 

 

  

Contribution margin (loss)

      94,797         1,164        300        96,261   

Selling, marketing, administrative and other expenses

             (80,175 ) 

Amortization of intangible assets

             (1,113 ) 

Reorganization costs

             (1,905 ) 

Other income and gains/losses on investments

             529   
         

 

 

  

Income before income taxes

           $ 13,597