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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 June 30, 2021
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 July 30, 2021, 83,648,748 shares of the registrant’s common shares were outstanding.
1


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)
 June 30,December 31,
20212020
Assets  
Current assets:  
Cash and cash equivalents$796,257 $712,583 
Fees receivable, net of allowances of $8,000 and $10,000, respectively
1,102,562 1,241,508 
Deferred commissions248,447 259,755 
Prepaid expenses and other current assets109,900 109,212 
Total current assets2,257,166 2,323,058 
Property, equipment and leasehold improvements, net309,222 336,765 
Operating lease right-of-use assets618,132 647,283 
Goodwill2,955,466 2,945,547 
Intangible assets, net775,479 806,998 
Other assets272,875 256,316 
Total Assets$7,188,340 $7,315,967 
Liabilities and Stockholders’ Equity   
Current liabilities:  
Accounts payable and accrued liabilities$752,241 $952,431 
Deferred revenues2,152,043 1,974,548 
Current portion of long-term debt5,322 20,515 
Total current liabilities2,909,606 2,947,494 
Long-term debt, net of deferred financing fees 2,457,854 1,958,286 
Operating lease liabilities745,108 780,166 
Other liabilities548,134 539,593 
Total Liabilities6,660,702 6,225,539 
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 periods
82 82 
Additional paid-in capital2,031,726 1,968,930 
Accumulated other comprehensive loss, net(82,978)(99,228)
Accumulated earnings2,690,803 2,255,467 
Treasury stock, at cost, 79,464,479 and 74,759,985 common shares, respectively
(4,111,995)(3,034,823)
Total Stockholders’ Equity 527,638 1,090,428 
Total Liabilities and Stockholders’ Equity $7,188,340 $7,315,967 
 

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 EndedSix Months Ended
 June 30,June 30,
 2021202020212020
Revenues:
Research$1,003,238 $875,329 $1,982,970 $1,784,620 
Conferences58,179 317 82,981 14,187 
Consulting105,902 97,489 205,406 193,219 
Total revenues1,167,319 973,135 2,271,357 1,992,026 
Costs and expenses:
Cost of services and product development350,802 322,551 685,269 663,829 
Selling, general and administrative488,496 494,840 975,751 991,479 
Depreciation25,851 22,728 51,601 45,245 
Amortization of intangibles26,154 31,208 56,668 63,387 
Acquisition and integration charges1,302 2,157 1,942 3,716 
Total costs and expenses892,605 873,484 1,771,231 1,767,656 
Operating income 274,714 99,651 500,126 224,370 
Interest expense, net(27,390)(30,296)(53,539)(56,644)
Gain on event cancellation insurance claims135,545  135,545  
Other (expense) income, net(3,682)(10,399)11,808 (11,915)
Income before income taxes379,187 58,956 593,940 155,811 
Provision for income taxes107,951 3,879 158,604 25,637 
Net income $271,236 $55,077 $435,336 $130,174 
Net income per share: 
Basic$3.16 $0.62 $5.00 $1.46 
Diluted$3.13 $0.61 $4.95 $1.45 
Weighted average shares outstanding:
Basic85,712 89,323 87,032 89,271 
Diluted86,589 89,780 87,921 89,967 

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 EndedSix Months Ended
 June 30,June 30,
 2021202020212020
Net income $271,236 $55,077 $435,336 $130,174 
Other comprehensive income (loss), net of tax: 
Foreign currency translation adjustments4,639 23,817 5,316 (22,564)
Interest rate swaps – net change in deferred gain or loss5,457 2,900 10,727 (41,832)
Pension plans – net change in deferred actuarial loss104 80 207 159 
Other comprehensive income (loss), net of tax10,200 26,797 16,250 (64,237)
Comprehensive income$281,436 $81,874 $451,586 $65,937 

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 Six Months Ended June 30, 2021
Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Loss, NetAccumulated EarningsTreasury StockTotal
Balance at December 31, 2020$82 $1,968,930 $(99,228)$2,255,467 $(3,034,823)$1,090,428 
Net income— — — 164,100 — 164,100 
Other comprehensive income— — 6,050 — — 6,050 
Issuances under stock plans— (1,543)— — 6,923 5,380 
Common share repurchases— — — — (410,450)(410,450)
Stock-based compensation expense — 36,086 — — — 36,086 
Balance at March 31, 2021$82 $2,003,473 $(93,178)$2,419,567 $(3,438,350)$891,594 
Net income— — — 271,236 — 271,236 
Other comprehensive income— — 10,200 — — 10,200 
Issuances under stock plans— 2,063 — — 2,017 4,080 
Common share repurchases— — — — (675,662)(675,662)
Stock-based compensation expense— 26,190 — — — 26,190 
Balance at June 30, 2021$82 $2,031,726 $(82,978)$2,690,803 $(4,111,995)$527,638 

Three and Six Months Ended June 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 

6


GARTNER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Six Months Ended
 June 30,
 20212020
Operating activities:  
Net income $435,336 $130,174 
Adjustments to reconcile net income to cash provided by operating activities:  
Depreciation and amortization 108,269 108,632 
Stock-based compensation expense62,276 40,807 
Deferred taxes2,294 (1,813)
Reduction in the carrying amount of operating lease right-of-use assets37,261 43,256 
Amortization and write-off of deferred financing fees1,914 5,392 
Amortization of deferred swap losses from de-designation 10,320 
Gain on de-designated swaps(11,751) 
Changes in assets and liabilities:  
Fees receivable, net132,650 261,124 
Deferred commissions10,494 31,255 
Prepaid expenses and other current assets(822)14,202 
Other assets(23,769)(932)
Deferred revenues190,814 (149,615)
Accounts payable and accrued and other liabilities(212,321)(93,885)
Cash provided by operating activities732,645 398,917 
Investing activities:  
Additions to property, equipment and leasehold improvements(24,479)(45,865)
Acquisitions - cash paid (net of cash acquired)(22,774) 
Cash used in investing activities(47,253)(45,865)
Financing activities:  
Proceeds from employee stock purchase plan9,414 9,719 
Proceeds from borrowings 600,000 800,000 
Payments of deferred financing fees(6,045)(10,516)
Proceeds from revolving credit facility 327,000 
Payments on revolving credit facility(5,000)(475,000)
Payments on borrowings(105,256)(853,094)
Purchases of treasury stock(1,083,350)(73,862)
Cash used in financing activities(590,237)(275,753)
Net increase in cash and cash equivalents and restricted cash95,155 77,299 
Effects of exchange rates on cash and cash equivalents (7,281)(1,502)
Cash and cash equivalents, beginning of period 712,583 280,836 
Cash and cash equivalents and restricted cash, end of period $800,457 $356,633 

See the accompanying notes to Condensed Consolidated Financial Statements.
7


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 7 — 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, 2020.

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 six months ended June 30, 2021 may not be indicative of the results of operations for the remainder of 2021 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 estimates and actual results could be material and would be reflected in the Company’s consolidated financial statements in future periods.

Cash and cash equivalents and restricted cash. For the six months ended June 30, 2021, the end of period cash and cash equivalents and restricted cash balance of $800.5 million in the accompanying Condensed Consolidated Statements of Cash Flows consisted of $796.3 million of cash and cash equivalents and $4.2 million of restricted cash. The restricted cash was classified in Other Assets in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2021.

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 4 — Revenue and Related Matters provides additional information regarding the Company’s revenues.
8



Gain on event cancellation insurance claims. In May 2021, the Company received $150.0 million of proceeds related to 2020 event cancellation insurance claims, and recorded a pre-tax gain of $135.5 million. The Company does not record any gain on insurance claims in excess of expenses incurred until the receipt of the insurance proceeds is deemed to be realizable.

Adoption of new accounting standards. The Company adopted the accounting standard described below during the six months ended June 30, 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. Gartner adopted ASU No. 2019-12 on January 1, 2021. The adoption of ASU No. 2019-12 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.

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.

Note 2 — Acquisition

On June 17, 2021, the Company acquired 100% of the outstanding capital stock of Pulse Q&A Inc. (“Pulse”), a privately-held company based in San Francisco, California, for an aggregate purchase price of $30.0 million. Pulse is a technology-enabled community platform.

For cash flow reporting purposes, the Company paid $22.8 million in cash for Pulse after considering the cash acquired with the business, amounts held in escrow and certain other purchase price adjustments at closing. In addition to the purchase price, the Company may also be required to pay up to $4.5 million in cash in the future based on the continuing employment of certain key employees. Such amount will be recognized as compensation expense over three years and reported in Acquisition and integration charges in the Consolidated Statements of Operations.

The Company recorded $30.6 million of goodwill and finite-lived intangible assets for Pulse and $0.6 million of other liabilities on a net basis. The Company believes that the recorded goodwill is supported by the anticipated synergies resulting from the acquisition. None of the recorded goodwill will be deductible for tax purposes. The fair value measurements of the intangible assets were based primarily on an incremental profits valuation methodology, which includes significant unobservable inputs and thus represent a Level 3 measurement as defined in FASB ASC Topic 820. The allocation of the purchase price is preliminary with respect to certain tax matters and the finalization of working capital adjustments and the valuation of finite-lived intangible assets.

The operating results of the acquired Pulse business and the related goodwill are being reported as part of the Company’s Research segment. The operating results of Pulse have been included in the Company’s consolidated financial statements since the date of acquisition; however, such operating results were not material to the Company’s consolidated operating results and segment results. Had the Company acquired Pulse in prior periods, the impact on the Company’s operating results would not have been material and, as a result, pro forma financial information for prior periods has not been presented herein.

Note 3 — Goodwill and Intangible Assets

9


Goodwill

Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair values of the tangible and identifiable intangible net assets acquired. Evaluations of the recoverability of goodwill are performed in accordance with FASB ASC Topic 350, which requires an annual assessment of potential goodwill impairment at the reporting unit level and whenever events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable.

When performing the annual assessment of the recoverability of goodwill, the Company initially performs a qualitative analysis evaluating whether any events or circumstances occurred or exist that provide evidence that it is more likely than not that the fair value of any of the Company’s reporting units is less than the related carrying amount. If the Company does not believe that it is more likely than not that the fair value of any of the Company’s reporting units is less than the related carrying amount, then no quantitative impairment test is performed. However, if the results of the qualitative assessment indicate that it is more likely than not that the fair value of a reporting unit is less than its respective carrying amount, then a quantitative impairment test is performed. Evaluating the recoverability of goodwill requires judgments and assumptions regarding future trends and events. As a result, both the precision and reliability of the estimates are subject to uncertainty.

The Company’s most recent annual impairment test of goodwill was a qualitative analysis conducted during the quarter ended September 30, 2020 that indicated no impairment. Subsequent to completing the 2020 annual impairment test, there were no events or changes in circumstances noted that required an interim impairment test.

The table below presents changes to the carrying amount of goodwill by segment during the six months ended June 30, 2021 (in thousands).
 ResearchConferencesConsultingTotal
Balance at December 31, 2020 (1)$2,664,732 $184,091 $96,724 $2,945,547 
Additions due to an acquisition (2)11,172   11,172 
Foreign currency translation impact (1,398)(20)165 (1,253)
Balance at June 30, 2021 (1)$2,674,506 $184,071 $96,889 $2,955,466 
(1)The Company does not have any accumulated goodwill impairment losses.
(2)The additions were due to the acquisition of Pulse on June 17, 2021. See Note 2 — Acquisition for additional information.

Finite-Lived Intangible Assets

The tables below present reconciliations of the carrying amounts of the Company’s finite-lived intangible assets as of the dates indicated (in thousands).
June 30, 2021Customer
Relationships
SoftwareContentOtherTotal
Gross cost at December 31, 2020$1,154,210 $110,597 $3,965 $10,614 $1,279,386 
Additions due to an acquisition (1)7,980 11,200  280 19,460 
Intangible assets fully amortized(17,788)(60,631)(3,965) (82,384)
Foreign currency translation impact 7,895 226   8,121 
Gross cost1,152,297 61,392  10,894 1,224,583 
Accumulated amortization (2)(414,460)(30,394) (4,250)(449,104)
Balance at June 30, 2021$737,837 $30,998 $ $6,644 $775,479 
December 31, 2020Customer
Relationships
SoftwareContentOther Total
Gross cost $1,154,210 $110,597 $3,965 $10,614 $1,279,386 
Accumulated amortization (2)(381,776)(83,320)(3,595)(3,697)(472,388)
Balance at December 31, 2020$772,434 $27,277 $370 $6,917 $806,998 
(1) The additions were due to the acquisition of Pulse on June 17, 2021. See Note 2 — Acquisition for additional information.
(2) Finite-lived intangible assets are amortized using the straight-line method over the following periods: Customer relationships—6 to 13 years; Software—3 to 7 years; Content—2 to 3 years; and Other—2 to 11 years.
10



Amortization expense related to finite-lived intangible assets was $26.2 million and $31.2 million during the three months ended June 30, 2021 and 2020, respectively, and $56.7 million and $63.4 million during the six months ended June 30, 2021 and 2020. The estimated future amortization expense by year for finite-lived intangible assets is presented in the table below (in thousands).

2021 (remaining six months)$52,600 
2022101,768 
2023101,752 
202494,540 
202584,001 
Thereafter340,818 
$775,479 

Note 4 — 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 June 30, 2021
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$646,432 $40,328 $59,605 $746,365 
Europe, Middle East and Africa236,756 14,468 35,459 286,683 
Other International120,050 3,383 10,838 134,271 
Total revenues $1,003,238 $58,179 $105,902 $1,167,319 

Three Months Ended June 30, 2020
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$573,245 $317 $58,017 $631,579 
Europe, Middle East and Africa196,854  30,114 226,968 
Other International105,230  9,358 114,588 
Total revenues $875,329 $317 $97,489 $973,135 

Six Months Ended June 30, 2021
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$1,277,765 $59,927 $117,091 $1,454,783 
Europe, Middle East and Africa466,957 17,181 65,821 $549,959 
Other International238,248 5,873 22,494 $266,615 
Total revenues $1,982,970 $82,981 $205,406 $2,271,357 

Six Months Ended June 30, 2020
Primary Geographic MarketResearchConferencesConsultingTotal
United States and Canada$1,163,400 $6,297 $112,181 $1,281,878 
Europe, Middle East and Africa402,794 2,147 60,196 465,137 
Other International218,426 5,743 20,842 245,011 
Total revenues $1,784,620 $14,187 $193,219 $1,992,026 
11


(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 the Company’s 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 June 30, 2021
Timing of Revenue RecognitionResearchConferencesConsultingTotal
Transferred over time (1)$916,754 $ $85,989 $1,002,743 
Transferred at a point in time (2)86,484 58,179 19,913 164,576 
Total revenues $1,003,238 $58,179 $105,902 $1,167,319 

Three Months Ended June 30, 2020
Timing of Revenue RecognitionResearchConferencesConsultingTotal
Transferred over time (1)$810,564 $ $68,630 $879,194 
Transferred at a point in time (2)64,765 317 28,859 93,941 
Total revenues $875,329 $317 $97,489 $973,135 

Six Months Ended June 30, 2021
Timing of Revenue RecognitionResearchConferencesConsultingTotal
Transferred over time (1)$1,810,841 $ $170,331 $1,981,172 
Transferred at a point in time (2)172,129 82,981 35,075 290,185 
Total revenues $1,982,970 $82,981 $205,406 $2,271,357 

Six Months Ended June 30, 2020
Timing of Revenue RecognitionResearchConferencesConsultingTotal
Transferred over time (1)$1,639,776 $ $150,038 $1,789,814 
Transferred at a point in time (2)144,844 14,187 43,181 202,212 
Total revenues $1,784,620 $14,187 $193,219 $1,992,026 

(1)Research revenues were recognized in connection with performance obligations that were satisfied over time using a time-elapsed output method to measure progress. Consulting revenues were recognized over time using labor hours as an input measurement basis.
(2)The revenues in this category were recognized in connection with performance obligations that were satisfied at the point in time that the contractual deliverables were provided to the customer.

Performance Obligations — For customer contracts that are greater than one year in duration, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2021 was approximately $3.7 billion. The Company expects to recognize $1,229.3 million, $1,754.2 million and $676.9 million of this revenue (most of which pertains to Research) during the remainder of 2021, the year ending December 31, 2022 and thereafter, respectively. The Company applies a practical expedient that is permitted under ASC Topic 606 and, accordingly, it does not disclose such performance obligation information for customer contracts that have original durations of one year or less. The Company’s performance obligations for contracts meeting this ASC Topic 606 disclosure exclusion primarily include: (i) stand-ready services under Research subscription contracts; (ii) holding conferences and meetings where attendees and exhibitors can participate; and (iii) providing customized Consulting solutions for clients under fixed fee and time and materials engagements.
12


The remaining duration of these performance obligations is generally less than one year, which aligns with the period that the parties have enforceable rights and obligations under the affected contracts.

Customer Contract Assets and Liabilities — The timing of the recognition of revenue and the amount and timing of the Company’s billings and cash collections, including upfront customer payments, result in the recognition of both assets and liabilities on the Company’s consolidated balance sheet. The table below provides information regarding certain of the Company’s balance sheet accounts that pertain to its contracts with customers (in thousands).

June 30,December 31,
20212020
Assets:
Fees receivable, gross (1)$1,110,562 $1,251,508 
Contract assets recorded in Prepaid expenses and other current assets (2)$22,637 $14,440 
Contract liabilities:
Deferred revenues (current liability) (3)$2,152,043 $1,974,548 
Non-current deferred revenues recorded in Other liabilities (3)31,826 26,754 
Total contract liabilities$2,183,869 $2,001,302 
(1)Fees receivable represent an unconditional right to payment from the Company’s customers and include both billed and unbilled amounts.
(2)Contract assets represent recognized revenue for which the Company does not have an unconditional right to payment as of the balance sheet date because the project may be subject to a progress billing milestone or some other billing restriction.
(3)Deferred revenues represent amounts (i) for which the Company has received an upfront customer payment or (ii) that pertain to recognized fees receivable. Both situations occur before the completion of the Company’s performance obligation(s).

The Company recognized revenue of $817.3 million and $692.6 million during the three months ended June 30, 2021 and 2020, respectively, and $1,261.9 million and $1,087.9 million during the six months ended June 30, 2021 and 2020, respectively, that was attributable to deferred revenues that were recorded at the beginning of each such period. Those amounts primarily consisted of (i) Research revenues that were recognized ratably as control of the goods or services passed to the customer and (ii) Conferences revenue pertaining to conferences and meetings that occurred during the reporting periods. During each of the three and six months ended June 30, 2021 and 2020, the Company did not record any material impairments related to its contract assets. The Company does not typically recognize revenue from performance obligations satisfied in prior periods.

Note 5 — Computation of Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS reflects the potential dilution of securities that could share in earnings. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be anti-dilutive.

The table below sets forth the calculation of basic and diluted income per share for the periods indicated (in thousands, except per share data).
13


Three Months EndedSix Months Ended
 June 30,June 30,
 2021202020212020
Numerator:    
Net income used for calculating basic and diluted income per share$271,236 $55,077 $435,336 $130,174 
Denominator:    
Weighted average common shares used in the calculation of basic income per share 85,712 89,323 87,03289,271
Dilutive effect of outstanding awards associated with stock-based compensation plans (1)877 457 889696
Shares used in the calculation of diluted income per share 86,589 89,780 87,92189,967
Basic income per share$3.16 $0.62 $5.00 $1.46 
Diluted income per share $3.13 $0.61 $4.95 $1.45 
(1)Certain potential shares of common stock were not included in the computation of diluted income per share because the effect would have been anti-dilutive. For the three and six months ended June 30, 2021, approximately 0.1 million shares of common stock equivalents were excluded for both periods from the calculation of diluted income per share because they were anti-dilutive. For the three and six months ended June 30, 2020, approximately 1.3 million and 0.8 million shares of common stock equivalents, respectively, were excluded because of their anti-dilutive effect.

Note 6 —