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Operating Segments
 9 Months Ended
Sep. 30, 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 has been and will continue to 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 and credits, 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.

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Products

 

 

Research

 

 

Consulting

 

 

Consolidated

 

Three Months Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

52,205

 

 

$

—

 

 

$

—

 

 

$

52,205

 

Advisory services and events revenues

 

 

2,041

 

 

 

9,804

 

 

 

10,703

 

 

 

22,548

 

Total segment revenues

 

 

54,246

 

 

 

9,804

 

 

 

10,703

 

 

 

74,753

 

Segment expenses

 

 

7,918

 

 

 

12,711

 

 

 

6,811

 

 

 

27,440

 

Contribution margin (loss)

 

 

46,328

 

 

 

(2,907

)

 

 

3,892

 

 

 

47,313

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(40,820

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(224

)

Reorganization (costs) credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(928

)

Other income and gains (losses) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

404

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

5,745

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Products

 

 

Research

 

 

Consulting

 

 

Consolidated

 

Three Months Ended September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

50,622

 

 

$

—

 

 

$

—

 

 

$

50,622

 

Advisory services and events revenues

 

 

2,310

 

 

 

10,925

 

 

 

11,506

 

 

 

24,741

 

Total segment revenues

 

 

52,932

 

 

 

10,925

 

 

 

11,506

 

 

 

75,363

 

Segment expenses

 

 

8,298

 

 

 

13,012

 

 

 

7,590

 

 

 

28,900

 

Contribution margin (loss)

 

 

44,634

 

 

 

(2,087

)

 

 

3,916

 

 

 

46,463

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41,079

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(530

)

Reorganization (costs) credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71

 

Other income and gains (losses) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

5,052

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Products

 

 

Research

 

 

Consulting

 

 

Consolidated

 

Nine Months Ended September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

156,667

 

 

$

—

 

 

$

—

 

 

$

156,667

 

Advisory services and events revenues

 

 

12,763

 

 

 

31,454

 

 

 

31,867

 

 

 

76,084

 

Total segment revenues

 

 

169,430

 

 

 

31,454

 

 

 

31,867

 

 

 

232,751

 

Segment expenses

 

 

27,799

 

 

 

38,467

 

 

 

20,544

 

 

 

86,810

 

Contribution margin (loss)

 

 

141,631

 

 

 

(7,013

)

 

 

11,323

 

 

 

145,941

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(126,120

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(669

)

Reorganization (costs) credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,433

)

Other income and gains (losses) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

578

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15,297

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Products

 

 

Research

 

 

Consulting

 

 

Consolidated

 

Nine Months Ended September 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

153,737

 

 

$

—

 

 

$

—

 

 

$

153,737

 

Advisory services and events revenues

 

 

15,161

 

 

 

37,573

 

 

 

24,910

 

 

 

77,644

 

Total segment revenues

 

 

168,898

 

 

 

37,573

 

 

 

24,910

 

 

 

231,381

 

Segment expenses

 

 

28,543

 

 

 

40,386

 

 

 

19,705

 

 

 

88,634

 

Contribution margin (loss)

 

 

140,355

 

 

 

(2,813

)

 

 

5,205

 

 

 

142,747

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(127,300

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,605

)

Reorganization (costs) credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,817

)

Other income and gains (losses) on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

222

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

12,247