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Operating Segment and Enterprise Wide Reporting
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Operating Segment and Enterprise Wide Reporting

Note 13 – Operating Segment and Enterprise Wide Reporting

The Company’s chief operating decision-maker (used in determining the Company’s segments) is the chief executive officer and the chief financial officer. The Company operates in three segments: Research, Consulting, and Events. These segments, which are also the Company's reportable segments, are based on the management structure of the Company and how the chief operating decision maker uses financial information to evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below. Additionally, the tables below include the reclassification of revenues for the components of the Company’s CV subscription research products, as described further in Note 1: Summary of Significant Accounting Policies.

The Research segment includes the revenues from all of the Company’s research products as well as consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in addition to the costs of the product management organization responsible for product pricing and packaging, and the launch of new products. In May 2021, the Company announced the launch of a new research portfolio called Forrester Decisions, which became available in August 2021. This new portfolio of products helps executives, functional leaders, and their teams, across technology, marketing, customer experience, sales, and product management, plan ​and pursue initiatives for driving growth. The Forrester Decisions product combines the research, frameworks, models, and methodologies of the Company’s Forrester Research and SiriusDecisions Research product offerings, as well as features of the Company’s smaller research products. In connection with the launch of Forrester Decisions, the Company no longer provides disaggregation of revenue by its research products in the segment tables below (refer to the tables below for disclosure of disaggregated revenue by geography).

The Consulting segment includes the revenues and the related costs of the Company’s project consulting organization. The project consulting organization delivers a majority of the Company’s project consulting revenue and certain advisory services.

The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events.

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, interest and other expense, and gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements. The Company does not review or evaluate assets as part of segment performance. Accordingly, the Company does not identify or allocate assets by reportable segment.

The Company provides information by reportable segment in the tables below (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research
Segment

 

 

Consulting
Segment

 

 

Events
Segment

 

 

Consolidated

 

Year Ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

325,340

 

 

$

—

 

 

$

—

 

 

$

325,340

 

Consulting revenues

 

 

47,247

 

 

 

108,867

 

 

 

—

 

 

 

156,114

 

Events revenues

 

 

—

 

 

 

—

 

 

 

12,861

 

 

 

12,861

 

Total segment revenues

 

 

372,587

 

 

 

108,867

 

 

 

12,861

 

 

 

494,315

 

Segment expenses

 

 

(118,155

)

 

 

(51,770

)

 

 

(8,518

)

 

 

(178,443

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(261,767

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(15,129

)

Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

(334

)

Interest expense, other expense, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(5,451

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

33,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research
Segment

 

 

Consulting
Segment

 

 

Events
Segment

 

 

Consolidated

 

Year Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

301,544

 

 

$

—

 

 

$

—

 

 

$

301,544

 

Consulting revenues

 

 

50,406

 

 

 

86,897

 

 

 

—

 

 

 

137,303

 

Events revenues

 

 

—

 

 

 

—

 

 

 

10,137

 

 

 

10,137

 

Total segment revenues

 

 

351,950

 

 

 

86,897

 

 

 

10,137

 

 

 

448,984

 

Segment expenses

 

 

(110,843

)

 

 

(40,168

)

 

 

(8,231

)

 

 

(159,242

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(248,105

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(19,683

)

Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

(5,779

)

Interest expense, other expense, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(3,242

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

12,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research
Segment

 

 

Consulting
Segment

 

 

Events
Segment

 

 

Consolidated

 

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Research revenues

 

$

303,801

 

 

$

—

 

 

$

—

 

 

$

303,801

 

Consulting revenues

 

 

55,812

 

 

 

75,074

 

 

 

—

 

 

 

130,886

 

Events revenues

 

 

—

 

 

 

—

 

 

 

27,010

 

 

 

27,010

 

Total segment revenues

 

 

359,613

 

 

 

75,074

 

 

 

27,010

 

 

 

461,697

 

Segment expenses

 

 

(120,882

)

 

 

(38,192

)

 

 

(18,968

)

 

 

(178,042

)

Selling, marketing, administrative and other expenses

 

 

 

 

 

 

 

 

 

 

 

(253,163

)

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

(22,619

)

Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

(8,948

)

Interest expense, other expense, and gains on investments

 

 

 

 

 

 

 

 

 

 

 

(8,524

)

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(9,599

)

 

 

Net long-lived tangible assets by location as of December 31, 2021 and 2020 are as follows (in thousands):

 

 

 

2021

 

 

2020

 

United States

 

$

76,966

 

 

$

87,126

 

United Kingdom

 

 

10,667

 

 

 

1,216

 

Europe (excluding United Kingdom)

 

 

316

 

 

 

667

 

Asia Pacific

 

 

5,305

 

 

 

7,319

 

Total

 

$

93,254

 

 

$

96,328

 

Revenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2021, 2020, and 2019 are as follows (dollars in thousands):

 

 

 

2021

 

 

2020

 

 

2019

 

United States

 

$

381,662

 

 

$

356,288

 

 

$

362,867

 

Europe (excluding United Kingdom)

 

 

41,264

 

 

 

34,897

 

 

 

32,585

 

United Kingdom

 

 

21,913

 

 

 

15,741

 

 

 

21,316

 

Canada

 

 

17,213

 

 

 

14,005

 

 

 

17,246

 

Asia Pacific

 

 

26,768

 

 

 

22,969

 

 

 

22,842

 

Other

 

 

5,495

 

 

 

5,084

 

 

 

4,841

 

Total

 

$

494,315

 

 

$

448,984

 

 

$

461,697

 

 

 

 

2021

 

 

2020

 

 

2019

 

United States

 

 

77

%

 

 

79

%

 

 

79

%

Europe (excluding United Kingdom)

 

 

9

 

 

 

8

 

 

 

7

 

United Kingdom

 

 

5

 

 

 

4

 

 

 

4

 

Canada

 

 

3

 

 

 

3

 

 

 

4

 

Asia Pacific

 

 

5

 

 

 

5

 

 

 

5

 

Other

 

 

1

 

 

 

1

 

 

 

1

 

Total

 

 

100

%

 

 

100

%

 

 

100

%