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Operating Segments
 3 Months Ended
Mar. 31, 2016
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 Research and Connect products. 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.

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, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) 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 majority of the Company’s project consulting services. 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 (expense), 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 March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

53,248

 

 

$

—

 

 

$

—

 

 

$

53,248

 

Advisory services and events revenues

 

 

2,701

 

 

 

10,586

 

 

 

10,866

 

 

 

24,153

 

Total segment revenues

 

 

55,949

 

 

 

10,586

 

 

 

10,866

 

 

 

77,401

 

Segment expenses

 

 

8,878

 

 

 

13,337

 

 

 

6,780

 

 

 

28,995

 

Contribution margin (loss)

 

 

47,071

 

 

 

(2,751

)

 

 

4,086

 

 

 

48,406

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(44,470

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(209

)

Reorganization costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,015

)

Other income (expense) and losses on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(328

)

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,384

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Products

 

 

Research

 

 

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 (expense) and losses on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

263

 

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(452

)