XML 32 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
Operating Segment and Enterprise Wide Reporting
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Operating Segment and Enterprise Wide Reporting

(10) Operating Segment and Enterprise Wide Reporting

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 and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

The Company 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):

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Product

 

 

Research

 

 

Consulting

 

 

Consolidated

 

Year Ended December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

215,216

 

 

$

—

 

 

$

—

 

 

$

215,216

 

Advisory services and events revenues

 

 

20,374

 

 

 

45,601

 

 

 

44,904

 

 

 

110,879

 

Total segment revenues

 

 

235,590

 

 

 

45,601

 

 

 

44,904

 

 

 

326,095

 

Segment expenses

 

 

41,528

 

 

 

51,132

 

 

 

26,647

 

 

 

119,307

 

Contribution margin (loss)

 

 

194,062

 

 

 

(5,531

)

 

 

18,257

 

 

 

206,788

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(174,157

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(831

)

Reorganization costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,026

)

Other income and losses on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(65

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

30,709

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Product

 

 

Research

 

 

Consulting

 

 

Consolidated

 

Year Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

210,268

 

 

$

—

 

 

$

—

 

 

$

210,268

 

Advisory services and events revenues

 

 

17,512

 

 

 

42,997

 

 

 

42,949

 

 

 

103,458

 

Total segment revenues

 

 

227,780

 

 

 

42,997

 

 

 

42,949

 

 

 

313,726

 

Segment expenses

 

 

38,615

 

 

 

51,510

 

 

 

27,320

 

 

 

117,445

 

Contribution margin (loss)

 

 

189,165

 

 

 

(8,513

)

 

 

15,629

 

 

 

196,281

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(172,130

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(891

)

Reorganization costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,433

)

Other income and losses on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

493

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

19,320

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

 

 

 

 

 

Product

 

 

Research

 

 

Consulting

 

 

Consolidated

 

Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research services revenues

 

$

207,517

 

 

$

—

 

 

$

—

 

 

$

207,517

 

Advisory services and events revenues

 

 

20,759

 

 

 

48,658

 

 

 

35,128

 

 

 

104,545

 

Total segment revenues

 

 

228,276

 

 

 

48,658

 

 

 

35,128

 

 

 

312,062

 

Segment expenses

 

 

39,466

 

 

 

53,307

 

 

 

27,236

 

 

 

120,009

 

Contribution margin (loss)

 

 

188,810

 

 

 

(4,649

)

 

 

7,892

 

 

 

192,053

 

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(169,852

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,171

)

Reorganization costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,817

)

Other income and losses on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

176

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

18,389

 

 

Net long-lived tangible assets by location as of December 31, 2016 and 2015 are as follows (in thousands):

 

 

 

2016

 

 

2015

 

United States

 

$

22,150

 

 

$

24,914

 

United Kingdom

 

 

782

 

 

 

1,176

 

Europe (excluding United Kingdom)

 

 

259

 

 

 

381

 

Other

 

 

703

 

 

 

1,098

 

Total

 

$

23,894

 

 

$

27,569

 

 

Revenues by geographic destination and as a percentage of total revenues for the years ended December 31, 2016, 2015, and 2014 are as follows (dollars in thousands):

 

 

 

2016

 

 

2015

 

 

2014

 

United States

 

$

252,222

 

 

$

241,025

 

 

$

232,440

 

Europe (excluding United Kingdom)

 

 

27,061

 

 

 

24,607

 

 

 

30,257

 

United Kingdom

 

 

14,808

 

 

 

16,815

 

 

 

16,804

 

Canada

 

 

13,806

 

 

 

14,424

 

 

 

17,089

 

Other

 

 

18,198

 

 

 

16,855

 

 

 

15,472

 

Total

 

$

326,095

 

 

$

313,726

 

 

$

312,062

 

 

 

 

2016

 

 

2015

 

 

2014

 

United States

 

 

77

%

 

 

77

%

 

 

74

%

Europe (excluding United Kingdom)

 

 

8

%

 

 

8

%

 

 

10

%

United Kingdom

 

 

5

%

 

 

5

%

 

 

5

%

Canada

 

 

4

%

 

 

5

%

 

 

6

%

Other

 

 

6

%

 

 

5

%

 

 

5

%

Total

 

 

100

%

 

 

100

%

 

 

100

%