Company Quick10K Filing
Gartner
Price143.89 EPS2
Shares91 P/E79
MCap13,107 P/FCF27
Net Debt1,875 EBIT239
TEV14,982 TEV/EBIT63
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-03
10-Q 2020-06-30 Filed 2020-08-04
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-19
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-07-30
10-Q 2019-03-31 Filed 2019-05-07
10-K 2018-12-31 Filed 2019-02-22
10-Q 2018-09-30 Filed 2018-11-01
10-Q 2018-06-30 Filed 2018-08-01
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-02-22
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-08
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-02-22
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-24
10-Q 2015-11-05 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-07-30
10-Q 2015-05-07 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-11-06 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-05
10-Q 2014-03-31 Filed 2014-05-01
10-K 2013-12-31 Filed 2014-02-26
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-02
10-Q 2013-03-31 Filed 2013-05-02
10-K 2012-12-31 Filed 2013-02-22
10-Q 2012-06-30 Filed 2012-08-03
10-Q 2012-03-31 Filed 2012-05-03
10-K 2011-12-31 Filed 2012-02-23
10-Q 2011-09-30 Filed 2011-11-01
10-Q 2011-06-30 Filed 2011-08-02
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-02-15
10-Q 2010-09-30 Filed 2010-11-03
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-05
10-K 2009-12-31 Filed 2010-02-19
8-K 2020-11-03 Earnings, Regulation FD, Exhibits
8-K 2020-09-28 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2020-09-14 Regulation FD, Exhibits
8-K 2020-08-04 Earnings, Regulation FD, Exhibits
8-K 2020-07-01 Officers, Regulation FD
8-K 2020-06-22
8-K 2020-06-18
8-K 2020-06-08
8-K 2020-05-07
8-K 2020-03-25
8-K 2020-03-09
8-K 2020-02-04
8-K 2020-01-30
8-K 2019-10-31
8-K 2019-07-30
8-K 2019-05-30
8-K 2019-05-07
8-K 2019-04-01
8-K 2019-02-14
8-K 2019-02-05
8-K 2018-11-01
8-K 2018-08-20
8-K 2018-08-01
8-K 2018-05-24
8-K 2018-05-08
8-K 2018-04-03
8-K 2018-02-15
8-K 2018-02-06

IT 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1 - Business and Basis of Presentation
Note 2 - Revenue and Related Matters
Note 3 - Computation of Earnings per Share
Note 4 - Stock - Based Compensation
Note 5 - Segment Information
Note 6 - Goodwill and Intangible Assets
Note 7 - Debt
Note 8 - Equity
Note 9 - Income Taxes
Note 10 - Derivatives and Hedging
Note 11 - Fair Value Disclosures
Note 12 - Employee Benefits
Note 13 - Contingencies
Note 14 - Leases
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 it-09302020xex311.htm
EX-31.2 it-09302020xex312.htm
EX-32 it-09302020xex32.htm

Gartner Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
10.08.05.93.91.8-0.22012201420172020
Assets, Equity
1.10.90.60.40.1-0.12012201420172020
Rev, G Profit, Net Income
1.80.90.0-0.8-1.7-2.62012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 
For the quarterly period ended September 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
Commission File Number 1-14443
Gartner, Inc.
(Exact name of Registrant as specified in its charter)
Delaware04-3099750
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification Number)
  
P.O. Box 1021206902-7700
56 Top Gallant Road(Zip Code)
Stamford, 
Connecticut
(Address of principal executive offices) 
Registrant’s telephone number, including area code: (203) 316-1111
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $.0005 par value per shareITNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filerNon-accelerated filer
Smaller reporting company Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of October 30, 2020, 89,286,873 shares of the registrant’s common shares were outstanding.



Table of Contents


 Page
 
 
PART II. OTHER INFORMATION
 

2


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GARTNER, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited; in thousands, except share data)
 September 30,December 31,
20202019
Assets  
Current assets:  
Cash and cash equivalents$553,715 $280,836 
Fees receivable, net of allowances of $10,000 and $8,000, respectively948,864 1,326,012 
Deferred commissions207,938 265,867 
Prepaid expenses and other current assets154,887 146,026 
Total current assets1,865,404 2,018,741 
Property, equipment and leasehold improvements, net332,891 344,579 
Operating lease right-of-use assets651,813 702,916 
Goodwill2,938,708 2,937,726 
Intangible assets, net820,994 925,087 
Other assets230,792 222,245 
Total Assets$6,840,602 $7,151,294 
Liabilities and Stockholders’ Equity   
Current liabilities:  
Accounts payable and accrued liabilities$790,260 $788,796 
Deferred revenues1,710,791 1,928,020 
Current portion of long-term debt20,511 139,718 
Total current liabilities2,521,562 2,856,534 
Long-term debt, net of deferred financing fees 1,957,473 2,043,888 
Operating lease liabilities785,705 832,533 
Other liabilities538,359 479,746 
Total Liabilities5,803,099 6,212,701 
Stockholders’ Equity   
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding  
Common stock, $0.0005 par value, 250,000,000 shares authorized; 163,602,067 shares issued for both periods82 82 
Additional paid-in capital1,960,143 1,899,273 
Accumulated other comprehensive loss, net(130,213)(77,938)
Accumulated earnings2,135,860 1,988,722 
Treasury stock, at cost, 74,193,907 and 74,444,288 common shares, respectively(2,928,369)(2,871,546)
Total Stockholders’ Equity 1,037,503 938,593 
Total Liabilities and Stockholders’ Equity $6,840,602 $7,151,294 
 

See the accompanying notes to condensed consolidated financial statements.
3


GARTNER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share data)

Three Months EndedNine Months Ended
 September 30,September 30,
 2020201920202019
Revenues:
Research$892,719 $840,998 $2,677,339 $2,492,427 
Conferences12,738 66,286 26,925 259,392 
Consulting89,161 93,218 282,380 290,009 
Total revenues994,618 1,000,502 2,986,644 3,041,828 
Costs and expenses:
Cost of services and product development329,767 365,056 993,596 1,099,700 
Selling, general and administrative521,508 512,159 1,512,987 1,545,905 
Depreciation22,743 20,704 67,988 60,578 
Amortization of intangibles31,228 31,694 94,615 97,541 
Acquisition and integration charges1,722 1,742 5,438 4,156 
Total costs and expenses906,968 931,355 2,674,624 2,807,880 
Operating income 87,650 69,147 312,020 233,948 
Interest expense, net(30,538)(24,073)(87,182)(73,669)
Loss from divested operations   (2,075)
Loss on extinguishment of debt(44,814) (44,814) 
Other income (expense), net1,869 8,024 (10,046)6,953 
Income before income taxes14,167 53,098 169,978 165,157 
(Benefit) provision for income taxes(2,797)11,710 22,840 (432)
Net income $16,964 $41,388 $147,138 $165,589 
Net income per share: 
Basic$0.19 $0.46 $1.65 $1.84 
Diluted$0.19 $0.46 $1.63 $1.82 
Weighted average shares outstanding:
Basic89,378 89,846 89,307 89,947 
Diluted89,955 90,887 90,002 91,089 

See the accompanying notes to condensed consolidated financial statements.
4


GARTNER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income
(Unaudited; in thousands)

Three Months EndedNine Months Ended
 September 30,September 30,
 2020201920202019
Net income $16,964 $41,388 $147,138 $165,589 
Other comprehensive income (loss), net of tax: 
Foreign currency translation adjustments7,498 3,553 (15,066)9,078 
Interest rate swaps – net change in deferred gain or loss4,379 (11,379)(37,453)(50,599)
Pension plans – net change in deferred actuarial loss85 41 244 124 
Other comprehensive income (loss), net of tax11,962 (7,785)(52,275)(41,397)
Comprehensive income$28,926 $33,603 $94,863 $124,192 

See the accompanying notes to condensed consolidated financial statements.
5


GARTNER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited; in thousands)

Three and Nine Months Ended September 30, 2020
Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Loss, NetAccumulated EarningsTreasury StockTotal
Balance at December 31, 2019$82 $1,899,273 $(77,938)$1,988,722 $(2,871,546)$938,593 
Net income— — — 75,097 — 75,097 
Other comprehensive loss— — (91,034)— — (91,034)
Issuances under stock plans— (1,794)— — 7,448 5,654 
Common share repurchases— — — — (63,164)(63,164)
Stock-based compensation expense — 25,129 — — — 25,129 
Balance at March 31, 2020$82 $1,922,608 $(168,972)$2,063,819 $(2,927,262)$890,275 
Net income— — — 55,077 — 55,077 
Other comprehensive income— — 26,797 — — 26,797 
Issuances under stock plans— 3,223 — — 867 4,090 
Common share repurchases— — — — (698)(698)
Stock-based compensation expense— 15,678 — — — 15,678 
Balance at June 30, 2020$82 $1,941,509 $(142,175)$2,118,896 $(2,927,093)$991,219 
Net income— — — 16,964 — 16,964 
Other comprehensive income— — 11,962 — — 11,962 
Issuances under stock plans— 3,133 — — 979 4,112 
Common share repurchases— — — — (2,255)(2,255)
Stock-based compensation expense— 15,501 — — — 15,501 
Balance at September 30, 2020$82 $1,960,143 $(130,213)$2,135,860 $(2,928,369)$1,037,503 


6


GARTNER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited; in thousands)

Three and Nine Months Ended September 30, 2019
Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Loss, NetAccumulated EarningsTreasury StockTotal
Balance at December 31, 2018$82 $1,823,710 $(39,867)$1,755,432 $(2,688,600)$850,757 
Net income— — — 20,795 — 20,795 
Other comprehensive loss— — (21,699)— — (21,699)
Issuances under stock plans— (2,911)— — 7,973 5,062 
Common share repurchases— — — — (29,837)(29,837)
Stock-based compensation expense — 31,819 — — — 31,819 
Balance at March 31, 2019$82 $1,852,618 $(61,566)$1,776,227 $(2,710,464)$856,897 
Net income— — — 103,406 — 103,406 
Other comprehensive loss— — (11,913)— — (11,913)
Issuances under stock plans— 3,140 — — 875 4,015 
Common share repurchases— — — — (1,723)(1,723)
Stock-based compensation expense— 13,120 — — — 13,120 
Balance at June 30, 2019$82 $1,868,878 $(73,479)$1,879,633 $(2,711,312)$963,802 
Net income— — — 41,388 — 41,388 
Other comprehensive loss— — (7,785)— — (7,785)
Issuances under stock plans— 3,538 — — 633 4,171 
Common share repurchases— — — — (94,873)(94,873)
Stock-based compensation expense— 12,954 — — — 12,954 
Balance at September 30, 2019$82 $1,885,370 $(81,264)$1,921,021 $(2,805,552)$919,657 

7


GARTNER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited; in thousands)

Nine Months Ended
 September 30,
 20202019
Operating activities:  
Net income $147,138 $165,589 
Adjustments to reconcile net income to cash provided by operating activities:  
Depreciation and amortization 162,603 158,119 
Stock-based compensation expense56,308 57,893 
Deferred taxes(6,548)(50,790)
Loss from divested operations 2,075 
Loss on extinguishment of debt44,814  
Fair value adjustment - equity security  (9,120)
Reduction in the carrying amount of operating lease right-of-use assets62,876 63,692 
Amortization and write-off of deferred financing fees7,487 4,865 
Amortization of deferred swap losses from de-designation10,320  
     Loss on de-designated swaps476  
Changes in assets and liabilities:  
     Fees receivable, net369,119 215,132 
Deferred commissions56,094 35,329 
Prepaid expenses and other current assets(9,104)(941)
Other assets(3,509)(46,954)
Deferred revenues(210,170)70,006 
Accounts payable and accrued and other liabilities(45,074)(182,294)
Cash provided by operating activities642,830 482,601 
Investing activities:  
     Additions to property, equipment and leasehold improvements(60,845)(95,701)
Acquisitions - cash paid (net of cash acquired) (2,295)
Cash used in investing activities(60,845)(97,996)
Financing activities:  
     Proceeds from employee stock purchase plan13,813 13,235 
     Proceeds from borrowings 2,000,000 5,000 
     Early redemption premium payment(30,752) 
     Payments of deferred financing fees(23,627) 
     Proceeds from revolving credit facility327,000 281,000 
     Payments on revolving credit facility(475,000)(316,000)
     Payments on borrowings(2,053,342)(74,612)
     Purchases of treasury stock(76,117)(141,436)
Cash used in financing activities(318,025)(232,813)
Net increase in cash and cash equivalents 263,960 151,792 
Effects of exchange rates on cash and cash equivalents 8,919 (3,728)
Cash and cash equivalents and restricted cash, beginning of period 280,836 158,663 
Cash and cash equivalents, end of period $553,715 $306,727 

See the accompanying notes to condensed consolidated financial statements.
8


GARTNER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 
Note 1 — Business and Basis of Presentation

Business. Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission–critical priorities today and build the successful organizations of tomorrow. We believe our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and an objective resource for more than 14,000 enterprises in more than 100 countries — across all major functions, in every industry and enterprise size.

Segments. Gartner delivers its products and services globally through three business segments: Research, Conferences and Consulting. Revenues and other financial information for our segments are discussed in Note 5 — Segment Information.

Basis of presentation. The accompanying interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 270 for interim financial information and with the applicable instructions of U.S. Securities and Exchange Commission (“SEC”) Rule 10-01 of Regulation S-X on Form 10-Q, and should be read in conjunction with the consolidated financial statements and related notes of the Company in its Annual Report on Form 10-K for the year ended December 31, 2019.

The fiscal year of Gartner is the twelve-month period from January 1 through December 31. In the opinion of management, all normal recurring accruals and adjustments considered necessary for a fair presentation of financial position, results of operations and cash flows at the dates and for the periods presented herein have been included. The results of operations for the three and nine months ended September 30, 2020 may not be indicative of the results of operations for the remainder of 2020 or beyond. When used in these notes, the terms “Gartner,” the “Company,” “we,” “us,” or “our” refer to Gartner, Inc. and its consolidated subsidiaries.

Principles of consolidation. The accompanying interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated.

Use of estimates. The preparation of the accompanying interim condensed consolidated financial statements requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of fees receivable, goodwill, intangible assets and other long-lived assets, as well as tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax expense or benefit, performance-based compensation charges, depreciation and amortization. Management believes its use of estimates in these interim condensed consolidated financial statements to be reasonable.

Management continually evaluates and revises its estimates using historical experience and other factors, including the general economic environment and actions it may take in the future. Management adjusts these estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time. As a result, differences between our estimates and actual results could be material and would be reflected in the Company’s consolidated financial statements in future periods.

In December 2019, a novel coronavirus disease (“COVID-19”) was reported in Wuhan, China and on March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. Any future asset impairment charges, increase in allowance for doubtful accounts, or restructuring charges could be more likely if the negative effects of the COVID-19 pandemic continue and will be dependent on the severity and duration of this crisis. To date, the Company has not observed any material impairments of its assets or a significant change in the fair value of assets due to the COVID-19 pandemic.

9


Revenue recognition. Revenue is recognized in accordance with the requirements of FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”). Revenue is only recognized when all of the required criteria for revenue recognition have been met. The accompanying Condensed Consolidated Statements of Operations present revenue net of any sales or value-added taxes that we collect from customers and remit to government authorities. ASC Topic 270 requires certain disclosures in interim financial statements around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Note 2 — Revenue and Related Matters provides additional information regarding the Company’s revenues.

Acquisition and divestiture activities. The Company recognized $1.7 million of Acquisition and integration charges during each of the three months ended September 30, 2020 and 2019. The Company recognized $5.4 million and $4.2 million of Acquisition and integration charges during the nine months ended September 30, 2020 and 2019, respectively. Acquisition and integration charges reflect additional costs and expenses resulting from our acquisitions and include, among other items, professional fees, severance and stock-based compensation charges. Although the Company did not complete any business acquisitions during the nine months ended September 30, 2020 or 2019, it paid $2.3 million of restricted cash in 2019 for deferred consideration from a 2017 acquisition.

During the nine months ended September 30, 2019, the Company recorded a pretax Loss from divested operations of $2.1 million, primarily due to adjustments of certain working capital balances related to divestitures that were completed in 2018.

Adoption of new accounting standards. The Company adopted the accounting standards described below during the nine months ended September 30, 2020.

Implementation Costs in a Cloud Computing Arrangement — In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU No. 2018-15”). ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Costs that are capitalized under ASU No. 2018-15 will be expensed over the term of the cloud computing arrangement. Gartner adopted ASU No. 2018-15 on January 1, 2020 on a prospective basis. The adoption of ASU No. 2018-15 did not have a material impact on the Company’s condensed consolidated financial statements.

Fair Value Measurement Disclosures — In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”). ASU No. 2018-13, which is part of the FASB’s broader disclosure framework project, modified and supplemented the previous U.S. GAAP disclosure requirements pertaining to fair value measurements, with an emphasis on Level 3 disclosures of the valuation hierarchy. Gartner adopted ASU No. 2018-13 on January 1, 2020. The adoption of ASU No. 2018-13 did not have a material impact on the Company’s condensed consolidated financial statements.

Goodwill Impairment — In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other - Simplifying the Test for Goodwill Impairment (“ASU No. 2017-04”). ASU No. 2017-04 simplified the determination of the amount of goodwill to be potentially charged off by eliminating Step 2 of the goodwill impairment test under previous U.S. GAAP. Gartner adopted ASU No. 2017-04 on January 1, 2020. The adoption of ASU No. 2017-04 did not have a material impact on the Company’s condensed consolidated financial statements.

Financial Instrument Credit Losses — In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (“ASU No. 2016-13”). ASU No. 2016-13 amended the previous financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. Gartner adopted ASU No. 2016-13 on January 1, 2020 with no cumulative effect adjustment to the Company’s opening retained earnings. The Company applied the expected credit loss model to its fees receivable balance on January 1, 2020 using a historical loss rate method. The Company’s trade receivables are collected fairly quickly and its credit losses have historically been low. The adoption of ASU No. 2016-13 did not have a material impact on the Company’s condensed consolidated financial statements.

Accounting standards issued but not yet adopted. The FASB has issued accounting standards that have not yet become effective and may impact the Company’s consolidated financial statements or related disclosures in future periods. Those standards and their potential impact are discussed below.



10


Accounting standard effective immediately upon voluntary election by Gartner

Reference Rate Reform — In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform—Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides that an entity can elect not to apply certain required modification accounting in U.S. GAAP to contracts where all changes to the critical terms relate to reference rate reform (e.g., the expected discontinuance of LIBOR and the transition to an alternative reference interest rate, etc.). In addition, the rule provides optional expedients and exceptions that enable entities to continue to apply hedge accounting for hedging relationships where one or more of the critical terms change due to reference rate reform. The rule became effective for all entities as of March 12, 2020 and will generally no longer be available to apply after December 31, 2022. The Company is currently evaluating the potential impact of ASU No. 2020-04 on its consolidated financial statements, including the rule’s potential impact on any debt modifications or other contractual changes in the future that may result from reference rate reform.

Accounting standard effective in the fourth quarter of 2020

Defined Benefit Plan Disclosures — In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU No. 2018-14”). ASU No. 2018-14, which is part of the FASB’s broader disclosure framework project, modifies and supplements the current U.S. GAAP annual disclosure requirements for employers that sponsor defined benefit pension plans. ASU No. 2018-14 is effective for Gartner in the fourth quarter of 2020. ASU No. 2018-14 must be adopted on a retroactive basis and applied to each comparative period presented in an entity’s financial statements. The adoption of ASU No. 2018-14 is currently not expected to have a material impact on the Company’s financial statement disclosures.

Accounting standard effective in 2021

Simplifying the Accounting for Income Taxes — In December 2019, the FASB issued ASU No. 2019-12, Income Taxes—Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”). ASU No. 2019-12 provides new guidance to simplify the accounting for income taxes in certain areas, changes the accounting for select income tax transactions and makes minor ASC improvements. ASU No. 2019-12 is effective for Gartner on January 1, 2021, including interim periods in the year of adoption. Early adoption is permitted. The method of adoption varies depending on the component of the new rule that is being adopted. The Company is currently evaluating the potential impact of ASU No. 2019-12 on our consolidated financial statements.

Note 2 — Revenue and Related Matters

Disaggregated Revenue — The Company’s disaggregated revenue by reportable segment is presented in the tables below for the periods indicated (in thousands).

By Primary Geographic Market (1)

Three Months Ended September 30, 2020
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$574,203 $10,669 $55,389 $640,261 
Europe, Middle East and Africa210,152 2,064 23,495 235,711 
Other International108,364 5 10,277 118,646 
Total revenues $892,719 $12,738 $89,161 $994,618 


Three Months Ended September 30, 2019
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$538,112 $28,153 $58,615 $624,880 
Europe, Middle East and Africa196,121 24,497 26,468 247,086 
Other International106,765 13,636 8,135 128,536 
Total revenues $840,998 $66,286 $93,218 $1,000,502 

11




Nine Months Ended September 30, 2020
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$1,737,603 $16,966 $167,570 $1,922,139 
Europe, Middle East and Africa612,946 4,211 83,691 700,848 
Other International326,790 5,748 31,119 363,657 
Total revenues $2,677,339 $26,925 $282,380 $2,986,644 

Nine Months Ended September 30, 2019
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$1,593,806 $157,756 $175,208 $1,926,770 
Europe, Middle East and Africa583,742 67,520 90,350 741,612 
Other International314,879 34,116 24,451 373,446 
Total revenues $2,492,427 $259,392 $290,009 $3,041,828 

(1)Revenue is reported based on where the sale is fulfilled.

The Company’s revenue is generated primarily through direct sales to clients by domestic and international sales forces and a network of independent international sales agents. Most of the Company’s products and services are provided on an integrated worldwide basis and, because of this integrated delivery approach, it is not practical to precisely separate our revenue by geographic location. Accordingly, revenue information presented in the above tables is based on internal allocations, which involve certain management estimates and judgments.

By Timing of Revenue Recognition


Three Months Ended September 30, 2020
Timing of Revenue RecognitionResearchConferencesConsultingTotal
Transferred over time (1)$823,658 $ $73,989 $897,647 
Transferred at a point in time (2)69,061 12,738 15,172 96,971 
Total revenues $892,719 $12,738 $89,161 $994,618 


Three Months Ended September 30, 2019
Timing of Revenue RecognitionResearchConferencesConsultingTotal
Transferred over time (1)$769,718 $ $77,570 $847,288 
Transferred at a point in time (2)71,280 66,286 15,648 153,214 
Total revenues $840,998 $66,286 $93,218 $1,000,502