XML 44 R15.htm IDEA: XBRL DOCUMENT v2.4.1.9
Operating Segments
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Operating Segments

Note 9 — Operating Segments

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 transition was essentially complete at the end of 2014 such that the vast majority of 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 product pricing and 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 March 31, 2015

            

Research services revenues

    $ 51,858       $ —         $ —         $ 51,858   

Advisory services and events revenues

      2,467         10,327         10,535         23,329   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total segment revenues

   54,325      10,327      10,535      75,187   

Segment expenses

   8,349      12,948      6,960      28,257   
  

 

 

     

 

 

     

 

 

     

 

 

  

Contribution margin (loss)

   45,976      (2,621 )    3,575      46,930   

Selling, marketing, administrative and other expenses

   (44,000 ) 

Amortization of intangible assets

   (221 ) 

Reorganization costs

   (3,424 ) 

Other income and gains (losses) on investments

   263   
           

 

 

  

Loss before income taxes

 $ (452 ) 
           

 

 

  

 

     Products      Research      Project
Consulting		      Consolidated  

Three Months Ended March 31, 2014

            

Research services revenues

    $ 50,793       $ —         $ —         $ 50,793   

Advisory services and events revenues

      2,857         13,976         5,445         22,278   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total segment revenues

   53,650      13,976      5,445      73,071   

Segment expenses

   8,351      13,975      5,677      28,003   
  

 

 

     

 

 

     

 

 

     

 

 

  

Contribution margin (loss)

   45,299      1      (232 )    45,068   

Selling, marketing, administrative and other expenses

   (43,660 ) 

Amortization of intangible assets

   (539 ) 

Reorganization costs

   (849 ) 

Other income and gains (losses) on investments

   (27 ) 
           

 

 

  

Loss before income taxes

 $ (7 )