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 Gartner Reports Financial Results for Fourth Quarter and Full Year 2015
   Thursday, February 04, 2016 6:00:07 AM ET

--Fourth Quarter Revenue Increased 10% YOY, to $643.8 Million

Gartner, Inc. (IT ), the leading provider of research and analysis on the global information technology industry, today reported results for fourth quarter and full year 2015 and provided its preliminary financial outlook for full year 2016.

For fourth quarter 2015, total revenue was $643.8 million, an increase of 10% over fourth quarter 2014. Excluding the negative impact of foreign exchange, quarterly revenues increased 16% in 2015. Fourth quarter 2015 net income was $65.8 million, an increase of 11% over fourth quarter 2014. Normalized EBITDA was $136.9 million for fourth quarter 2015, an increase of 13% over fourth quarter 2014 on a reported basis and 19% adjusted for foreign exchange impact. Diluted Earnings Per Share was $0.78 in fourth quarter 2015 compared to $0.66 in fourth quarter 2014. Diluted Earnings Per Share Excluding Acquisition Adjustments was $0.92 in fourth quarter 2015 compared to $0.72 in fourth quarter 2014. (See "Non-GAAP Financial Measures" below for a discussion of Normalized EBITDA and Diluted Earnings Per Share Excluding Acquisition Adjustments).

For full year 2015, total revenue was $2.163 billion, an increase of 7% over 2014, but excluding the negative foreign exchange impact, revenues increased 13%. Net income was $175.6 million in 2015, a decrease of 4% compared to 2014. Normalized EBITDA was $407.5 million in 2015, an increase of 5% over 2014 as reported and 13% adjusted for the foreign exchange impact. Diluted Earnings Per Share was $2.06 in 2015, an increase of 1% compared to 2014. Diluted Earnings Per Share Excluding Acquisition Adjustments increased 7%, to $2.39 in 2015 compared to $2.24 in 2014.

Gene Hall, Gartner’s chief executive officer, commented, "Gartner continued its trend of strong results in 2015 and executed on a number of key strategic initiatives designed to drive long term growth. I remain confident that we will continue to deliver strong results in 2016 and beyond."

Business Segment Highlights

Research

Revenue for fourth quarter 2015 was $420.5 million, up 13% compared to fourth quarter 2014. Research revenues increased 18% in the fourth quarter of 2015 excluding the foreign exchange impact. The quarterly gross contribution margin was 68% and 69% in 2015 and 2014, respectively. Contract value was $1.761 billion at December 31, 2015, an increase of 14% on a foreign exchange neutral basis and 10% on a reported basis compared to December 31, 2014. Fourth quarter 2015 and 2014 client retention was 84% and 85%, respectively, while wallet retention was 105% and 106%, respectively.

Consulting

Revenue for fourth quarter 2015 was $87.9 million, which was flat compared to fourth quarter 2014. Excluding the foreign exchange impact, revenues increased 5%. The gross contribution margin was 30% and 32% in fourth quarter 2015 and 2014, respectively. Fourth quarter 2015 utilization was 67% compared to 72% in fourth quarter 2014. As of December 31, 2015, billable headcount was 606 compared to 535 at year-end 2014. Backlog was $117.7 million at December 31, 2015 compared to $102.6 million at December 31, 2014.

Events

Revenue for fourth quarter 2015 was $135.3 million, an increase of 11% compared to fourth quarter 2014 and 17% excluding the foreign exchange impact. The gross contribution margin was 57% in fourth quarter 2015 compared to 56% in the prior year quarter. The Company held 15 events with 24,208 attendees in fourth quarter 2015, compared to 13 events and 23,453 attendees in fourth quarter 2014.

Cash Flow and Balance Sheet Highlights

Gartner generated $346 million of operating cash flow in full year 2015 compared to $347 million in 2014. Additions to property, equipment and leasehold improvements ("Capital Expenditures") totaled $46 million in 2015. Free Cash Flow for the full year 2015 was $316 million, a slight increase compared to 2014 (See "Non-GAAP Financial Measures" below for a discussion of Free Cash Flow). At December 31, 2015, the Company had $373 million of cash and $656 million of borrowing capacity on its revolving credit facility. During 2015, the Company used $509 million in cash to repurchase its common shares and $196 million for acquisitions.

Financial Outlook for 2016

The Company also provided its preliminary financial outlook for 2016:

Projected Revenue

                                                                                                                                            
($ in millions)                                                                                           2016 Projected Range                                                                                                                                  % Change
---------------                                           ---------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------
Research                                                   $ 1,785     --    $ 1,815                                                                13 %   --   15                    %
Consulting                                                     330                                           --                           345                                                                 1                        --                       5
Events                                                         275                        --                           290                                              9                        --                      15
                                                          -----------------------------                                                          -----------------------------
Total Revenue                                              $ 2,390                        --                       $ 2,450                                             10 %                      --                      13                    %
                                                          == ===== ====================                                                          == ===== ====================                                           == =                                                          == ====================
                                                                                                                                                                                                                                                                                           

Projected Earnings and Cash Flow (1)

                                                                                                                                                                                       
($ in millions, except per share data)                                                                                                                2016 Projected Range                                                                                                                                     % Change
------------------------------------------------------------                                           -------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------
GAAP Diluted Earnings Per Share                                                                         $ 2.15                        --    $ 2.37                                                                 4  %   --           15                    %
Diluted Earnings Per Share Excluding Acquisition Adjustments                                              2.55                                           --                         2.77                                                                 7                         --                              16
Normalized EBITDA                                                                                          440                                           --                          470                                                                 8                         --                              15
                                                                                                                                                                                                                                                                                                                                    
Operating Cash Flow                                                                                        350                                           --                          375                                                                 1                         --                               9
Acquisition and Integration Payments                                                                        42                                           --                           42                                                                 >100                      --                                                 >100
Capital Expenditures                                                                                       (47 )                                         --                          (47 )                                                               2                         --                               2
                                                                                                       ----------------------------                                                          ----------------------------
Free Cash Flow                                                                                          $  345                        --                       $  370                                              9  %                      --                              17                    %
                                                                                                       == ==== ====================                                                          == ==== ====================                                           == ==                                                          ========== ====================
                                                                                                                                                                                                                                                                                                                                               

(1) See "Non-GAAP Financial Measures" below for descriptions of Diluted Earnings Per Share Excluding Acquisition Adjustments, Normalized EBITDA, and Free Cash Flow.

Conference Call Information

Gartner has scheduled a conference call at 8:30 a.m. eastern time on Thursday, February 4, 2016 to discuss the Company’s financial results. The conference call will be available via the Internet by accessing the Company’s website at http://investor.gartner.com or by dial-in. The U.S. dial-in number is 888-679-8033 and the international dial-in number is 617-213-4846 and the participant passcode is 90044241#. The question and answer session of the conference call will be open to investors and analysts only. A replay of the webcast will be available for approximately 90 days following the call.

Annual Meeting of Stockholders

Gartner will hold its 2016 Annual Meeting of Stockholders at 10:00 a.m. eastern time on Thursday, May 26, 2016 at the Company’s offices in Stamford, Connecticut.

About Gartner

Gartner, Inc. (IT ) is the world’s leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to supply chain and digital marketing professionals and technology investors, we are the valuable partner to clients in 10,796 distinct enterprises. Through the resources of Gartner Research, Consulting and Events, we work with clients to research, analyze and interpret the business of IT within the context of their individual roles. Gartner is headquartered in Stamford, Connecticut, U.S.A., and as of December 31, 2015, had 7,834 associates, including 1,731 research analysts and consultants, and clients in over 90 countries. For more information, visit www.gartner.com.

Non-GAAP Financial Measures

Normalized EBITDA: Represents operating income excluding stock-based compensation expense, depreciation and amortization, accretion on obligations related to excess facilities, and acquisition and integration charges. We believe Normalized EBITDA is an important measure of our recurring operations as it excludes items that may not be indicative of our core operating results. Investors are cautioned that Normalized EBITDA is not a financial measure defined under generally accepted accounting principles and as a result is considered a non-GAAP financial measure. We provide this measure to enhance the user’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future. Normalized EBITDA should not be construed as an alternative to any other measure of performance determined in accordance with generally accepted accounting principles.

Diluted Earnings Per Share Excluding Acquisition Adjustments: Represents GAAP diluted earnings per share adjusted for the per share impact of certain items directly related to acquisitions, net of tax effect. The adjustments consist of amortization of identifiable intangibles, non-recurring acquisition and integration charges such as legal, consulting, retention, severance and other costs, and non-cash fair value adjustments on pre-acquisition deferred revenues. We believe Diluted Earnings Per Share Excluding Acquisition Adjustments is an important measure of our recurring operations as it excludes items that may not be indicative of our core operating results.

Free Cash Flow: Represents cash provided by operating activities plus cash acquisition and integration payments less cash paid for capital expenditures. We believe that Free Cash Flow is an important measure of the recurring cash generated by the Company’s core operations that is available to be used to repurchase our stock, repay debt obligations, invest in future growth through new business development activities, or make acquisitions.

Safe Harbor Statement

Statements contained in this press release regarding the Company’s growth and prospects, projected 2016 financial results and all other statements in this release other than recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different. Such factors include, but are not limited to, the following: our ability to maintain and expand our products and services; our ability to expand or retain our customer base; our ability to grow or sustain revenue from individual customers; our ability to attract and retain a professional staff of research analysts and consultants as well as experienced sales personnel upon whom we are dependent; our ability to achieve and effectively manage growth, including our ability to integrate acquisitions and consummate future acquisitions; our ability to pay our debt; our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures; our ability to carry out our strategic initiatives and manage associated costs; our ability to successfully compete with existing competitors and potential new competitors; our ability to enforce or protect our intellectual property rights; additional risks associated with international operations including foreign currency fluctuations; the impact of restructuring and other charges on our businesses and operations; general economic conditions; risks associated with the creditworthiness and budget cuts of governments and agencies; and other factors described under "Risk Factors" contained in our Annual Report on Form 10-K for the year ended December 31, 2014, which can be found on Gartner’s website at www.investor.gartner.com and the SEC’s website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and Gartner disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

 
                                                                                                                                                                                                                       GARTNER, INC.
                                                                                                                                                                                                      Condensed Consolidated Statements of Operations
                                                                                                                                                                                                    (Unaudited; in thousands, except per share amounts)
                                                                                                                                                                                                                                                                 
                                                                                                                        Three Months Ended                                                                                                                                                                              Twelve Months Ended
                                                                                                                           December 31,                                                                                                                                                                                    December 31,
                                                                                                    2015                               2014                                                                                                                                     2015                                  2014
                                                                                      ---------------------------------                     ---------------------------------                                                                                                      ------------------------------------                     ------------------------------------
Revenues:
   Research                                                                             $ 420,499                                             $ 373,395                                                                            13  %                                              $ 1,583,486                                              $ 1,445,338                                                                        10                    %
   Consulting                                                                              87,921                                                88,337                                                                --  %                                                  327,735                                                  348,396                                                                        (6                   )%
   Events                                                                                 135,348                            122,247                                                         11  %                                                  251,835                               227,707                                                     11                    %
                                                                                      --------------------------------                      --------------------------------                                                                                                       -----------------------------------                      -----------------------------------
Total revenues                                                                            643,768                                               583,979                                                                            10  %                                                2,163,056                                                2,021,441                                                                         7                    %
Costs and expenses:
   Cost of services and product development                                               257,217                                               235,875                                                                             9  %                                                  839,076                                                  797,933                                                                         5                    %
   Selling, general and administrative                                                    258,809                                               235,888                                                                            10  %                                                  962,677                                                  876,067                                                                        10                    %
   Depreciation                                                                             8,850                                                 8,061                                                                            10  %                                                   33,789                                                   31,186                                                                         8                    %
   Amortization of intangibles                                                              6,359                                                 2,463                                                                             >100                                                   13,342                                                    8,226                                                                        62                    %
   Acquisition and integration charges                                                     10,912                              5,852                                                         86  %                                                   26,175                                21,867                                                     20                    %
                                                                                      --------------------------------                      --------------------------------                                                                                                       -----------------------------------                      -----------------------------------
Total costs and expenses                                                                  542,147                            488,139                                                         11  %                                                1,875,059                             1,735,279                                                      8                    %
                                                                                      --------------------------------                      --------------------------------                                                                                                       -----------------------------------                      -----------------------------------
   Operating income                                                                       101,621                                                95,840                                                                             6  %                                                  287,997                                                  286,162                                                                         1                    %
Interest expense, net                                                                      (6,013 )                                              (3,301 )                                                                          82  %                                                  (20,782 )                                                (10,887 )                                                                      91                    %
Other income (expense), net                                                                 1,059                               (251 )                                                                           >100                                                    4,996                                  (592 )                                                                                         >100
                                                                                      ----------  --------------------                      ----------  --------------------                                                                                                       -------------  --------------------                      -------------  --------------------
Income before income taxes                                                                 96,667                                                92,288                                                                             5  %                                                  272,211                                                  274,683                                                                        (1                   )%
Provision for income taxes                                                                 30,904                             33,144                                                         (7 )%                                                   96,576                                90,917                                                      6                    %
                                                                                      --------------------------------                      --------------------------------                                                                                                       -----------------------------------                      -----------------------------------
   Net income                                                                           $  65,763                          $  59,144                                                         11  %                                              $   175,635                           $   183,766                                                     (4                   )%
                                                                                      === ======= ====================                      === ======= ====================                                                                                                       ==== ========= ====================                      ==== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                           
Income per common share:
   Basic                                                                                $    0.80                                             $    0.67                                                                            19  %                                              $      2.09                                              $      2.06                                                                         1                    %
   Diluted                                                                              $    0.78                                             $    0.66                                                                            18  %                                              $      2.06                                              $      2.03                                                                         1                    %
Weighted average shares outstanding:
   Basic                                                                                   82,677                                                87,647                                                                            (6 )%                                                   83,852                                                   89,337                                                                        (6                   )%
   Diluted                                                                                 83,890                             88,956                                                         (6 )%                                                   85,056                                90,719                                                     (6                   )%
                                                                                      --------------------------------                      --------------------------------                                                                                                       -----------------------------------                      -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                      
 
BUSINESS SEGMENT DATA
(Unaudited; in thousands)
 
                                                                                                                                                      
                                                                                                          Revenue                                                                     Direct                                                                        Gross                                                             Contribution
                                                                                                                                                                                      Expense                                                                   Contribution                                                             Margin
                                                                                            --------------------------------                                             ------------------------------                                             ---------------------------------                                             --------------------
Three Months Ended 12/31/15
Research                                                                                      $   420,499                                                                  $ 135,494                                                                   $   285,005                                                                         68%
Consulting                                                                                         87,921                                                                     61,903                                                                        26,018                                                                         30%
Events                                                                                            135,348                                                  58,248                                                     77,100                                                      57%
                                                                                            ----------------------------------                                           --------------------------------                                           -----------------------------------
TOTAL                                                                                         $   643,768                                               $ 255,645                                                $   388,123                                                      60%
                                                                                            === ========= ====================                                           === ======= ====================                                           ==== ========= ====================
Three Months Ended 12/31/14
Research                                                                                      $   373,395                                                                  $ 116,957                                                                   $   256,438                                                                         69%
Consulting                                                                                         88,337                                                                     59,753                                                                        28,584                                                                         32%
Events                                                                                            122,247                                                  54,004                                                     68,243                                                      56%
                                                                                            ----------------------------------                                           --------------------------------                                           -----------------------------------
TOTAL                                                                                         $   583,979                                               $ 230,714                                                $   353,265                                                      60%
                                                                                            === ========= ====================                                           === ======= ====================                                           ==== ========= ====================
Twelve Months Ended 12/31/15
Research                                                                                      $ 1,583,486                                                                  $ 486,659                                                                   $ 1,096,827                                                                         69%
Consulting                                                                                        327,735                                                                    220,542                                                                       107,193                                                                         33%
Events                                                                                            251,835                                                 121,308                                                    130,527                                                      52%
                                                                                            ----------------------------------                                           --------------------------------                                           -----------------------------------
TOTAL                                                                                         $ 2,163,056                                               $ 828,509                                                $ 1,334,547                                                      62%
                                                                                            --- --------- --------------------                                           --- ------- --------------------                                           ---- --------- --------------------
Twelve Months Ended 12/31/14
Research                                                                                      $ 1,445,338                                                                  $ 443,424                                                                   $ 1,001,914                                                                         69%
Consulting                                                                                        348,396                                                                    228,465                                                                       119,931                                                                         34%
Events                                                                                            227,707                                                 115,323                                                    112,384                                                      49%
                                                                                            ----------------------------------                                           --------------------------------                                           -----------------------------------
TOTAL                                                                                         $ 2,021,441                                               $ 787,212                                                $ 1,234,229                                                      61%
                                                                                            === ========= ====================                                           === ======= ====================                                           ==== ========= ====================
                                                                                                                                                                                                                                                                                                                                   
                                                                                                                           
SELECTED STATISTICAL DATA
                                                                                                                                                                                                                                               
                                                                                                                                                        December 31,                                                                                      December 31,
                                                                                                                                                            2015                                                                                              2014
                                                                                                                                             -------------------------------                                                                  ---------------------------------
Research contract value (a)                                                                                                                     $   1.761                                                                                          $   1.603
Research client retention                                                                                                                              84                    %                                                                            85                    %
Research wallet retention                                                                                                                             105                    %                                                                           106                    %
Research client enterprises (b)                                                                                                                    10,796                                                                                              9,958
                                                                                                                                                                                                                                               
Consulting backlog (c)                                                                                                                          $ 117,700                                                                                          $ 102,600
Consulting--quarterly utilization                                                                                                          67                    %                                                                            72                    %
Consulting billable headcount                                                                                                                         606                                                                                                535
Consulting--average annualized revenue per billable headcount (c)                                                                   $     389                                                                                          $     463
                                                                                                                                                                                                                                               
Events--number of events for the quarter                                                                                                   15                                                                                                 13
Events--attendees for the quarter                                                                                                      24,208                                                                          23,453  
-----------------------------------------------------------------------------                                                                ---------------------------------                                                                -----------------------------------
(a)      In billions.
(b)                         An enterprise is defined as a single company or customer.
(c)                         In thousands.
                          
                                                                                                                                              
SUPPLEMENTAL INFORMATION
Reconciliation - Operating income to Normalized EBITDA (a) (Unaudited;
in thousands):
                                                                                                                                                                                                                                               
                                                                                                                                               Three Months Ended                                                                                                     Twelve Months Ended
                                                                                                                                                  December 31,                                                                                                           December 31,
                                                                                                             --------------------------------------------------------------------------------                                                 ------------------------------------------------------------
                                                                                                                           2015                               2014                                                                       2015                     2014
                                                                                                             ---------------------------------                     ---------------------------------                                          ---------------------------------                     ------------
Net income                                                                                                     $  65,763                                             $  59,144                                                                  $ 175,635                                             $ 183,766
Interest expense, net                                                                                              6,013                                                 3,301                                                                     20,782                                                10,887
Other (income) expense, net                                                                                       (1,059 )                                                 251                                                                     (4,996 )                                                 592
Tax provision                                                                                                     30,904                             33,144                                                  96,576                             90,917
                                                                                                             --------------------------------                      --------------------------------                                           --------------------------------                      ------------
Operating income                                                                                               $ 101,621                                             $  95,840                                                                  $ 287,997                                             $ 286,162
Normalizing adjustments:
Stock-based compensation expense (b)                                                                               9,169                                                 9,436                                                                     46,149                                                38,861
Depreciation, accretion, and amortization (c)                                                                     15,226                                                10,543                                                                     47,214                                                39,544
Acquisition and integration adjustments (d)                                                                       10,912                              5,852                                                  26,175                             21,867
                                                                                                             --------------------------------                      --------------------------------                                           --------------------------------                      ------------
   Normalized EBITDA                                                                                           $ 136,928                          $ 121,671                                               $ 407,535                          $ 386,434
---------------------------------------------                                                                === ======= ====================                      === ======= ====================                                           === ======= ====================                      === =======
(a)   Normalized EBITDA is based on GAAP operating income adjusted for
                         certain normalizing adjustments.
(b)                      Consists of charges for stock-based compensation awards.
(c)                      Includes depreciation expense, accretion on excess facilities
                         accruals, and amortization of intangibles.
(d)                      Consists of directly-related incremental expenses from acquisitions.
                          
Reconciliation - Diluted Earnings Per Share to Diluted Earnings
Per Share Excluding Acquisition Adjustments (a)
(Unaudited;
in thousands, except per share amounts):
                                                                    
                                                                                                                                                                                                            Three Months Ended December 31,
                                                                                                                                                     2015                                                                                            2014
                                                                                                           -----------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------
                                                                                                                            After-tax                              EPS                                                                After-tax                                 EPS
                                                                                                                             Amount                                                                                                                       Amount
                                                                                                           ----------------------------------------                       ------------------------                                            -----------------------------                       ----------------------------------------
Diluted earnings per share                                                                                                    $               65,763                                         $ 0.78                                                              $    59,144                                         $                 0.66
Acquisition adjustments, net of tax effect (b):
Amortization of acquired intangibles (c)                                                                                                       4,312                                           0.05                                                                    1,562                                                           0.02
Acquisition and integration charges (d)                                                                                                        7,508                                           0.09                                                                    3,743                                                           0.04
                                                                                                           ------------------------------------------                     --------------------------                                          -------------------------------                     ------------------------------------------
Diluted earnings per share excluding acquisition adjustments (e)                                                              $               77,583                                         $ 0.92                                                              $    64,449                                         $                 0.72
                                                                                                           ==================== ====================                      ==================== ====                                           ==================== =========                      ==================== ====================
                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                      Twelve Months Ended December 31,
                                                                                                                                                                2015                                                                                                              2014
                                                                                                                                ----------------------------------------------------------------                                              -------------------- ---------------------------------------------------------------------
                                                                                                                                      After-tax                              EPS                                              After-tax                                EPS
                                                                                                                                       Amount                                                                                                                        Amount
                                                                                                                                --------------------                      -------------------- ----                                           -------------------- ---------                      -------------------- --------------------
Diluted earnings per share                                                                                 $                                 175,635                                         $ 2.06                                                              $   183,766                                         $                 2.03
Acquisition adjustments, net of tax effect (b):                                                                                  
Amortization of acquired intangibles (c)                                                                                                       8,993                                           0.11                                                                    5,272                                                           0.06
Acquisition and integration charges (d)                                                                                    18,418                        0.22                                                14,337                                        0.15
                                                                                                           -------------------- --------------------                      -------------------- ----                                           -------------------- ---------                      -------------------- --------------------
Diluted earnings per share excluding acquisition adjustments (e)                                           $                                 203,046                                         $ 2.39                                                              $   203,375                                         $                 2.24
----------------------------------------------------------------                                           ==================== ====================                      ==================== ====                                           ==================== =========                      ==================== ====================
                                                                                                                                                                                                                                                                                                                        
(a)    Diluted earnings per share excluding acquisition adjustments
                          represents GAAP diluted earnings per share adjusted for the per
                          share impact of certain items directly-related to acquisitions, net
                          of tax effect.
(b)                       The effective tax rates on the adjustments were 31% and 30% for the
                          three and twelve months ended December 31, 2015, respectively, and
                          36% and 34% for the three and twelve months ended December 31, 2014,
                          respectively.
(c)                       Consists of non-cash amortization charges related to acquired
                          intangibles.
(d)                       Consists of directly-related incremental expenses from acquisitions.
(e)                       Calculated based on 83.9 million and 89.0 million shares for the
                          three months ended December 31, 2015 and 2014, respectively, and
                          85.1 million and 90.7 million shares for the twelve months ended
                          December 31, 2015 and 2014, respectively.
                          

SUPPLEMENTAL INFORMATION continued

                                                                     
Selected Balance Sheet data (Unaudited; in thousands)
                                                                                                                                
                                                                                                                                                                                                                       December 31,
                                                                                                                               ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                          2015                                                                 2014
                                                                                                                               -----------------------------------------------------------                                                               -------------------------------------------------------------------
Cash and cash equivalents                                                                                                        $      372,976                                                                      $                  365,302
Fees receivable, net                                                                                                                                                          580,763                                                                                                                               552,107
Total assets                                                                                                                                                                2,174,686                                                                                                                             1,904,351
Deferred revenues                                                                                                                                                             900,801                                                                                                                               841,457
Total current and long-term debt                                                                                                                                              825,000                                                                                                                               405,000
Total liabilities                                                                                                                                                           2,307,086                                                                                                                             1,743,180
Total stockholders’ (deficit) equity                                                                  $     (132,400 )                                                                    $                  161,171
---------------------------------------------------------------                                                                --- -------------------- -------------------- -------- ---                                                                --- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                        
                                           
Selected Cash Flow Data (Unaudited; in thousands):
                                                                                                      
                                                                                                                                                                       Twelve Months Ended
                                                                                                                                                                          December 31,
                                                                                                     --------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              2015                                             2014
                                                                                                     ------------------------------------------------------                                                               ---------------------------------
Cash provided by operating activities                                                                  $   345,561                                                                                       $   346,779
Cash paid for capital expenditures                                                                                             46,128                                                                                                               38,486
Cash paid for treasury stock                                                                                                  509,049                                                                                                              432,006
Cash paid for acquisitions, net (a)                                                                                           196,229                                                                                                              124,291
Cash receipts (payments) on debt, net                                                                  $   420,000                                                                    $   200,000
-------------------------------------                                                                --- -------------------- ------- --------------------                                                                --- -------------------- -------
(a)    Includes escrow amounts.
                          
                                           
Reconciliation - Cash Provided by Operating Activities to Free
Cash Flow (a) (Unaudited; in thousands):
                                                                
                                                                                                    Twelve Months Ended
                                                                                                       December 31,
                                                               --------------------------------------------------------------------------------------
                                                                               2015                                  2014
                                                               ------------------------------------                     ------------------------------------
Cash provided by operating activities                               $ 345,561                                                $ 346,779
Adjustments:
Cash acquisition and integration payments                              16,975                                                    3,753
Cash paid for capital expenditures                                    (46,128 )                                                (38,486 )
                                                               -----------------------------------                      -----------------------------------
   Free Cash Flow                                                   $ 316,408                             $ 312,046  
-----------------------------------------                      ====== ======= ====================                      ====== ======= ====================
(a)   Free cash flow is based on cash provided by operating activities
                         determined in accordance with GAAP plus cash acquisition and
                         integration payments less additions to capital expenditures.
                          

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160204005499r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160204005499/en/

SOURCE: Gartner, Inc.

Gartner, Inc. 
Sherief Bakr, +1 203-316-6537 
Group Vice President, Investor Relations 
investor.relations@gartner.com


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