Gartner, Inc. (IT, NYSE)
Industry: Information Technology Services
Annual report, fiscal year 2017


## 2017
ANNUAL
REPORT

## Gartner \( ^{®} \)



## Dear Shareholders:



Gene Hall
Chief Executive Officer



Craig Safian
Chief Financial Officer

## We’re living in a time of unprecedented change.

Technology pervades every functional area of the enterprise, and the pace and impact of technology-driven change are accelerating. Technology-driven innovation is disrupting entire industries. The scope, scale and economic impact of technology are enormous, and the rate of macroeconomic and political volatility is increasing.

## Leaders need help determining how to adapt to this change.

Across every functional area of the business, leaders turn to Gartner for the help they need.

Gartner has the technology expertise and, with the 2017 acquisition of CEB, we also have deep business expertise across all major functional areas of the enterprise — including HR, Finance, Marketing, Supply Chain, Sales, Product and Legal.

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 equip business leaders across the enterprise with indispensable insights, advice and tools to achieve their mission-critical priorities.

We’re trusted as an objective resource and a critical partner by more than 12,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

## This represents an enormous market opportunity.

We estimate that the combined market opportunity across the functional areas we serve is almost $200 billion. Our contract value at December 31, 2017 was $2.8 billion. This means we can grow at double-digit rates for a very long time.
We know how to capture that opportunity. Gartner has an attractive business model, with recurring revenue, high renewal rates and strong contribution margins, all of which enable us to generate long-term, sustained double-digit growth in contract value, revenue, earnings and free cash flow.

We know how to grow syndicated research businesses. We’ve developed proven practices for success and we drive globally consistent execution of these practices.

## The CEB acquisition integration has gone extraordinarily well.

In less than one year, we have fully integrated our two organizations, bringing together about 10,000 heritage Gartner associates with about 5,000 heritage CEB associates. We have met our expectations of capturing synergies. We’ve launched a number of new, seat-based products. We determined the Talent Assessment business did not fit strategically, set it up as a stand-alone business, and in April 2018, divested the business.

We made operational changes at heritage CEB to improve the business. The CEB acquisition is proceeding ahead of our initial expectations.

## We continued to deliver great results with another year of double-digit contract value growth.

While we were making great progress with the CEB integration, the heritage Gartner Research business had its best year yet. Contract value growth accelerated to 16% excluding the impact of foreign exchange. Once again, we had double-digit growth in every region across every size company and in virtually every industry. Wallet retention was 106%, up 2 percentage points year over year, and client retention was 84%, steady versus the prior year. These metrics are near our all-time highs. We ended the year with almost 12,000 enterprises as clients, up 7% year over year.



## Consolidated Results

For the full year 2017, including the contribution from acquisitions, we generated $3.5 billion of adjusted revenue and $661 million of adjusted EBITDA \( ^{1} \) , representing year-over-year growth of 44% and 45% respectively, excluding the impact of foreign exchange. Diluted earnings per share excluding acquisition and other adjustments was $3.31 in 2017, a year-over-year increase of approximately 12%, and free cash flow was $265 million.

## Business Segment Review

Gartner Research, our largest and most profitable business, closed another record-breaking year with adjusted revenue of $2.6 billion, an increase of 41% year over year, excluding the impact of foreign exchange. We closed 2017 with reported contract value (a key indicator of future revenue and profitability) of $2.8 billion, an increase of 46% year over year, excluding the impact of foreign exchange, and the highest reported contract value in Gartner history.

On a full-year basis, Gartner Events reported adjusted revenue of $344 million, an increase of 28% over 2016, excluding the impact of foreign exchange. In total, the 69 events we held in 2017 attracted more than 67,000 attendees. Gartner Events is the leading global technology conference provider, enabling professionals from across all enterprise functions around the world to experience our research, interact with our analysts and meet business executives from the world's leading companies — all in a single forum. We remain focused on ensuring every event we produce is a must-attend conference in every geography in which we operate.

Gartner Consulting extends the reach of our Research business by deepening our relationships with our largest clients. Gartner Consulting generated adjusted revenue of $328 million in 2017, an increase of 3% year over year, excluding the impact of foreign exchange, and we closed the year with $95 million of backlog (a leading indicator of future growth for Consulting) — a 7% improvement from the prior year.

Gartner Talent Assessment and Other, a new segment last year, generated adjusted revenue of $226 million in 2017. In early April 2018, we divested the Talent Assessment portion of this segment.
We’re focused on prudent capital allocation.

Our capital deployment strategy has been consistent over time. After ensuring that we have appropriately invested in our business to sustain long-term, double-digit growth, we use our free cash flow and available balance sheet flexibility for strategic, value-generating acquisitions and to return capital to our shareholders through our share buyback programs. Since closing our acquisition of CEB, we’ve reduced our gross debt from around $3.6 billion to $3.3 billion.

## Gartner is a growth company.

2017 was a great year for Gartner. We had strong operating results, we closed on and integrated CEB, and we invested to drive future growth.

Gartner’s attractive business model, with recurring revenue, high renewal rates and strong contribution margins, enables us to generate long-term, sustained double-digit growth in contract value, revenue, earnings and free cash flow.

Over the medium term, our objective is double-digit growth in revenue and adjusted EBITDA, with steady margins. Because of our low capital intensity and negative working capital model, we expect to grow free cash flow at double-digit rates as well.

We remain excited about our business, our prospects for growth and our strategy to create value for our shareholders over the long term.

On behalf of everyone at Gartner, we thank you for your support.





Gene Hall
Chief Executive Officer

Craig Safian
Chief Financial Officer



## The Numbers: Highlights

Segment Revenue 2017
($ in millions)



Total Contract Value
($ in millions)



## Comparison of Five-Year Cumulative Total Return \( ^{*} \) 

Among Gartner, Inc., the S&P Midcap 400 Index, the S&P 500 Index, the Dow Jones US Business Support Services Index and a Peer Group



Gartner, Inc.
Dow Jones US Business Support Services
S&P 500
S&P Midcap 400 (previous year peer)

Peer Group
(previous year peer)
The graph matches the cumulative 5-year total return of holders (including reinvestment of dividends) of Gartner, Inc.'s common stock with the cumulative total returns of the S&P 500 index and the Dow Jones US Business Support Services index.

During 2017, Gartner became a company within the S&P 500 index and acquired CEB Inc., which was one of the two companies (along with Forrester Research Inc.) in the customized peer group used in the 2016 annual report. As a result of these changes, we have updated our peer group to the Dow Jones US Support Services Index to reflect a broader selection of peer companies. For comparative purposes, we have also included the cumulative total returns (including reinvestment of dividends) of the S&P 400 Index and the customized peer group, which due to our acquisition of CEB Inc., only includes Forrester Researcher Inc.

*$100 invested on 12/31/12 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.

Copyright© 2018 Standard & Poor's, a division of S&P Global. All rights reserved. Copyright© 2018 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.



<table><tr><td></td><td>2017 (1)</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>STATEMENT OF OPERATIONS DATA</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenues</td><td>$ 3,311,494</td><td>$ 2,444,550</td><td>$ 2,163,056</td><td>$ 2,021,441</td><td>$ 1,784,213</td></tr><tr><td>Net income (2)</td><td>3,279</td><td>193,582</td><td>175,635</td><td>183,766</td><td>182,801</td></tr><tr><td>Diluted income per common share (2)</td><td>$ 0.04</td><td>$ 2.31</td><td>$ 2.06</td><td>$ 2.03</td><td>$ 1.93</td></tr><tr><td>Weighted average shares outstanding (diluted)</td><td>89,790</td><td>83,820</td><td>85,056</td><td>90,719</td><td>94,830</td></tr><tr><td>Common shares outstanding at year-end</td><td>90,823</td><td>82,651</td><td>82,338</td><td>87,521</td><td>91,966</td></tr><tr><td>CASH FLOW DATA</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating cash flows</td><td>$ 254,517</td><td>$ 365,632</td><td>$ 345,561</td><td>$ 346,779</td><td>$ 315,654</td></tr></table>

<table><tr><td></td><td>2017 (1)</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>BALANCE SHEET DATA</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$ 538,908</td><td>$ 474,233</td><td>$ 372,976</td><td>$ 365,302</td><td>$ 423,990</td></tr><tr><td>Current assets</td><td>2,588,608</td><td>1,343,196</td><td>1,140,997</td><td>1,096,658</td><td>1,084,882</td></tr><tr><td>Total assets</td><td>7,283,173</td><td>2,367,335</td><td>2,168,517</td><td>1,904,351</td><td>1,783,582</td></tr><tr><td>Current liabilities</td><td>2,822,585</td><td>1,460,249</td><td>1,323,492</td><td>1,215,218</td><td>1,159,923</td></tr><tr><td>Total debt principal outstanding</td><td>3,323,062</td><td>702,500</td><td>825,000</td><td>405,000</td><td>205,000</td></tr><tr><td>Total liabilities</td><td>6,299,708</td><td>2,306,457</td><td>2,300,917</td><td>1,743,180</td><td>1,422,266</td></tr><tr><td>Stockholders&#x27; equity (deficit)</td><td>$ 983,465</td><td>$ 60,878</td><td>$ (132,400)</td><td>$ 161,171</td><td>$ 361,316</td></tr><tr><td>STATISTICAL DATA</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total contract value</td><td>$ 2,770,000</td><td>$ 1,930,000</td><td>$ 1,768,000</td><td>$ 1,606,000</td><td>$ 1,423,000</td></tr><tr><td>Research client enterprises</td><td>12,000+</td><td>11,122</td><td>10,796</td><td>9,958</td><td>9,071</td></tr><tr><td>Consulting backlog</td><td>$ 95,200</td><td>$ 88,600</td><td>$ 100,800</td><td>$ 83,609</td><td>$ 86,630</td></tr><tr><td>Employees</td><td>15,131</td><td>8,813</td><td>7,834</td><td>6,758</td><td>5,997</td></tr></table>

(1) 2017 includes the impact of the acquisition of CEB, Inc., which Gartner acquired on April 5, 2017.

(2) 2017 includes a one-time tax benefit of approximately $59.6 million related to the Tax Cuts and Jobs Act of 2017.



## Investor Relations

As a Gartner shareholder, you're invited to take advantage of shareholder services or to request more information about Gartner.

## Account Questions

Our transfer agent can help you with a variety of shareholder-related services, including:

• Account information • Lost certificates

• Transfer instructions • Direct share registration

• Change of address

You can call our transfer agent at:
+1 800 937 5449 (toll-free; U.S. shareholders only)
+1 718 921 8124 (non-U.S. shareholders)

You can also write our transfer agent and registrar at:
American Stock Transfer & Trust Company, LLC
Shareholder Relations
6201 15th Avenue
Brooklyn, NY 11219
USA
help@astfinancial.com

Shareholders of record who receive more than one copy of this annual report can contact our transfer agent and arrange to have their accounts consolidated. Shareholders who own Gartner stock through a brokerage firm can contact their broker to request consolidation of their accounts.

## Contact Information

To contact Gartner Investor Relations, call +1 203 316 6537. We can be contacted during East Coast business hours to answer investment-oriented questions about Gartner.

In addition, you can write us at:
Gartner Investor Relations
56 Top Gallant Road
P.O. Box 10212
Stamford, CT 06904-2212
USA

Or send us an email at investor.relations@gartner.com. To get financial information online, visit investor.gartner.com.

Independent Registered Public Accounting Firm
KPMG LLP
345 Park Avenue
New York, NY 10154
USA



# Gartner \( ^{®} \) 

April 10, 2018

Dear Stockholder:

On behalf of the Board of Directors and Management of Gartner, Inc., I invite you to attend our 2018 Annual Meeting of Stockholders to be held on Thursday, May 24, 2018, at 10 a.m. local time, at our corporate headquarters at 56 Top Gallant Road, Stamford, Connecticut.

Details of the business to be conducted at the meeting are given in the Notice of Annual Meeting of Stockholders and Proxy Statement which follow this letter. The 2017 Annual Report to Stockholders is also included with these materials.

We have mailed to many of our stockholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access our 2018 Proxy Statement and our 2017 Annual Report to Stockholders, and how to vote online on the three management Proposals put before you this year. The Notice also includes instructions on how to request a paper or email copy of the proxy materials, including the Notice of Annual Meeting, Proxy Statement and Annual Report, and proxy card or voting instruction card. Stockholders who previously either requested paper copies of the proxy materials or elected to receive the proxy materials electronically did not receive a Notice, and will receive the proxy materials in the format requested.

In addition, by following the e-consent instructions in the proxy card, stockholders may go paperless in future solicitations and request proxy materials electronically by email on an ongoing basis.

Your vote is important. Whether or not you plan to attend the Annual Meeting, we urge you to review the proxy materials and vote your shares, regardless of the number of shares you hold, as soon as possible. You may vote by proxy over the internet or by telephone using the instructions provided in the Notice. Alternatively, if you received paper copies of the proxy materials by mail, you can also vote by following the instructions on the proxy card or voting instruction card. Instructions regarding the three methods of voting are contained in the Notice, proxy card or voting instruction card.

If you have any questions about the meeting, please contact our Investor Relations Department at (203) 316-6537.

Sincerely,



Eugene A. Hall

Chief Executive Officer



# Gartner \( ^{®} \) 

## NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

Date: Thursday, May 24, 2018

Time: 10:00 a.m. local time

Location: 56 Top Gallant Road

Stamford, Connecticut 06904

Matters To Be Voted On: (1) Election of eleven members of our Board of Directors;

(2) Approval, on an advisory basis, of the compensation of our named executive officers; and

(3) Ratification of the appointment of KPMG LLP as our independent registered public accounting firm for 2018.

Record Date: March 29, 2018 – You are eligible to vote if you were a stockholder of record on this date.

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to Be Held on May 24, 2018: We are making this Notice of Annual Meeting, this Proxy Statement and our 2017 Annual Report available on the Internet at www.proxyvote.com and mailing copies of these Proxy Materials to certain stockholders on or about April 10, 2018. Stockholders of record at the close of business on March 29, 2018 are entitled to notice of and to vote at the Annual Meeting.

By Order of the Board of Directors,



Jules Kaufman

Corporate Secretary

Stamford, Connecticut

April 10, 2018



## TABLE OF CONTENTS

GENERAL INFORMATION
The Annual Meeting and Proposals ..... 1
Information Concerning Proxy Materials and the Voting of Proxies ..... 1

THE BOARD OF DIRECTORS
General Information About Our Board of Directors ..... 5
Majority Vote Standard ..... 7
Compensation of Directors ..... 7
Director Compensation Table ..... 9
Director Stock Ownership and Holding Period Guidelines ..... 9

CORPORATE GOVERNANCE
Board Principles and Practices ..... 10
Director Independence ..... 10
Board Leadership Structure ..... 11
Risk Oversight ..... 11
Board and Committee Meetings and Annual Meeting Attendance ..... 11
Committees Generally and Charters ..... 12
Audit Committee ..... 12
Compensation Committee ..... 13
Governance/Nominating Committee ..... 14
Code of Ethics and Code of Conduct ..... 14

PROPOSAL ONE: ELECTION OF DIRECTORS
Nominees for Election to the Board of Directors ..... 15

EXECUTIVE OFFICERS
General Information About Our Current Executive Officers ..... 16

COMPENSATION DISCUSSION & ANALYSIS
Executive Summary ..... 17
Compensation Setting Process for 2017 ..... 20
Other Compensation Policies and Information. Executive Stock Ownership and Holding Period Guidelines ..... 28
Clawback Policy ..... 28
Hedging and Pledging Policies ..... 29
Accounting and Tax Impact ..... 29
Grant of Equity Awards ..... 29
Compensation Committee Report ..... 31

COMPENSATION TABLES AND NARRATIVE DISCLOSURES
Summary Compensation Table ..... 32
Other Compensation Table ..... 33
Grants of Plan-Based Awards Table ..... 34
Employment Agreements With Executive Officers ..... 35
Potential Payments Upon Termination or Change in Control ..... 39
Outstanding Equity Awards at Fiscal Year-End Table ..... 42
Option Exercises and Stock Vested Table ..... 43
Non-Qualified Deferred Compensation Table ..... 43
Pay Ratio ..... 44
Equity Compensation Plan Information ..... 45
PROPOSAL TWO: APPROVAL, ON AN ADVISORY BASIS, OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS ..... 46
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ..... 47
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE ..... 48
TRANSACTIONS WITH RELATED PERSONS ..... 49
PROPOSAL THREE: RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ..... 50
Principal Accountant Fees and Services ..... 50
Audit Committee Report ..... 51
MISCELLANEOUS ..... 52
Stockholder Communications ..... 52
Available Information ..... 52
Process for Submission of Stockholder Proposals for our 2019 Annual Meeting ..... 52
Annual Report ..... 53



# Gartner \( ^{®} $ 

56 Top Gallant Road
Stamford, Connecticut 06904

PROXY STATEMENT

For the Annual Meeting of Stockholders to be held on May 24, 2018

## GENERAL INFORMATION

## The Annual Meeting and Proposals

The 2017 Annual Meeting of Stockholders of Gartner, Inc. will be held on Thursday, May 24, 2018, at 10:00 a.m. local time, for the purposes set forth in the accompanying Notice of Annual Meeting of Stockholders and described in greater detail below. This Proxy Statement and form of proxy, together with our 2017 Annual Report to Stockholders, are being furnished in connection with the solicitation by the Board of Directors of proxies to be used at the meeting and any adjournment of the meeting, and are first being made available to our stockholders on or around April 10, 2018. We will refer to your company in this Proxy Statement as “we”, “us”, the “Company” or “Gartner.” The three proposals to be considered and acted upon at the Annual Meeting, which are described in more detail in this Proxy Statement, are:

• Election of eleven (11) nominees to our Board of Directors;

• Approval, on an advisory basis, of the compensation of our named executive officers; and

- Ratification of the appointment of KPMG LLP as our independent registered public accounting firm for the 2018 fiscal year.

Management does not intend to present any other items of business and is not aware of any matters other than those set forth in this Proxy Statement for action at the 2018 Annual Meeting of Stockholders. However, if any other matters properly come before the Annual Meeting, the persons designated by the Company as proxies may vote the shares of Common Stock they represent in their discretion.

## Information Concerning Proxy Materials and the Voting of Proxies

## Why is it Important to Vote?

Voting your shares is important to ensure that you have a say in the governance of the Company. Additionally, repeated failure to vote may subject your shares to risk of escheatment. For more information on escheatment laws, please visit www.investor.gartner.com. Please review the proxy materials and follow the relevant instructions to vote your shares. We hope you will exercise your rights and fully participate as a stockholder in the future of Gartner.

## Why Did You Receive a Notice Regarding Availability of Proxy Materials?

Securities and Exchange Commission (“SEC”) rules allow companies to furnish proxy materials to their stockholders via the Internet. This “e-proxy” process expedites stockholders’ receipt of proxy materials, while significantly lowering the costs and reducing the environmental impact of our annual meeting. Accordingly, on April 10, 2018, we mailed to our stockholders (other than those who previously have requested printed proxy materials) a Notice of Internet Availability of Proxy Materials (the “Notice”). If you received a Notice, you will not receive a printed copy of the proxy materials unless you request one. The Notice provides instructions on how to access our proxy materials for the Annual Meeting on a website, how to request a printed copy of the proxy materials and how to vote your shares. We will mail printed copies of our proxy materials to those stockholders who have already elected to receive printed proxy materials.



## If Your Shares Are Held in “Street Name,” How Are Your Shares Voted?

If you are the beneficial owner of shares (meaning that your shares are held in the name of a bank, brokerage or other nominee; i.e., “street name” accounts), you may receive a Notice of Internet Availability of Proxy Materials from that firm containing instructions you must follow in order for your shares to be voted. Additionally, under applicable New York Stock Exchange (“NYSE”) rules relating to the discretionary voting of proxies, banks, brokers and other nominees are not permitted to vote shares with respect to “non-routine” matters, such as the election of directors and the say on pay proposal presented this year without instructions from the beneficial owner, except they are able to vote without instructions on “routine” matters, such as the ratification of the appointment of an independent registered public accounting firm. Therefore, beneficial holders are advised that, if they do not timely provide instructions to their bank, broker or other nominee, their shares will not be voted in connection with Proposals One and Two, but may be voted in connection with Proposal Three. Generally, broker non-votes occur on a matter when a broker is not permitted to vote on that matter without instructions from the beneficial owner and instructions are not given.

## If You Are the Holder of Record of Your Shares, How Are Your Shares Voted?

If you are the holder of record of your shares, you will either receive a Notice or printed proxy materials if you have already elected to receive printed materials. The Notice will contain instructions you must follow to vote your shares. If you received proxy materials in paper form, the materials include a proxy card instructing the holder of record how to vote the shares.

## How Can You Get Electronic Access to Proxy Materials?

The Notice provides instructions regarding how to view our proxy materials for the Annual Meeting online. Additionally, materials are available on www.proxyvote.com and have available your 12-digit Control number(s) located on your Notice.

## How Can You Request Paper or Email Copies of Proxy Materials?

If you received a Notice by mail, you will not receive a printed copy of the proxy materials. If you want to receive paper or email copies of the proxy materials, you must request them. There is no charge for requesting a copy. To facilitate timely delivery, please make your request on or before May 10, 2018. To request paper or email copies, stockholders can go to www.proxyvote.com, call 1-800-579-1639 or send an email to sendmaterial@proxyvote.com. Please note that if you request materials by email, send a blank email with your 12-digit Control number(s) (located on your Notice) in the subject line.

## How Can You Sign Up to Receive Future Proxy Materials Electronically?

You have the option to receive all future proxy statements, proxy cards and annual reports electronically via email or the Internet. If you elect this option, the Company will only mail printed materials to you in the future if you request that we do so. To sign up for electronic delivery, please follow the instructions below under How Can You Vote to vote using the Internet and vote your shares. After submitting your vote, follow the prompts to sign up for electronic delivery.

## What is “Householding”?

We have adopted “householding” procedures that allow us to deliver proxy materials more cost-effectively. If you are a beneficial owner of shares and you and other residents at your mailing address share the same last name and also own shares of common stock in an account at the same bank, brokerage, or other nominee, your nominee delivered a single Notice or set of proxy materials to your address. This method of delivery is known as householding. Householding reduces the number of mailings you receive, saves on printing and postage costs and helps the environment. Stockholders participating in householding continue to receive separate proxy cards and control numbers for voting electronically.

We will deliver promptly a separate copy of the Notice or proxy materials to a stockholder at a shared address to which a single copy was delivered. A stockholder who received a single Notice or set of proxy materials to a shared address may request a separate copy of the Notice or proxy materials be sent to him or her by contacting in writing Broadridge Financial Solutions, Inc. (“Broadridge”), Householding Department at 51 Mercedes Way, Edgewood, New York, 11717, or calling 1-800-542-1061. If you would like to opt out of householding for future deliveries of proxy materials, please contact your broker, bank or other nominee.



Beneficial owners of shares who share an address and receive multiple copies of the proxy materials but want to receive only a single copy of these materials in the future should contact their bank, brokerage or other nominee and make this request.

## Who Can Vote at the Annual Meeting?

Only stockholders of record at the close of business on March 29, 2018 (the “Record Date”) may vote at the Annual Meeting. As of the Record Date, there were 91,040,171 shares of our common stock, par value $0.0005 per share (“Common Stock”) outstanding and eligible to be voted. This amount does not include treasury shares which are not voted.

## How Can You Vote?

You may vote using one of the following methods:

<table><tr><td>Internet</td><td>You may vote on the Internet up until 11:59 PM Eastern Time on May 23, 2018 by going to the website for Internet voting on the Notice or your proxy card (www.proxyvote.com) and following the instructions on your screen. Have your Notice or proxy card available when you access the web page. If you vote by the Internet, you should not return your proxy card.</td></tr><tr><td>Telephone</td><td>You may vote by telephone by calling the toll-free telephone number on your proxy card (1-800-690-6903), 24 hours a day and up until 11:59 PM Eastern Time on May 23, 2018, and following pre-recorded instructions. Have your proxy card available when you call. If you vote by telephone, you should not return your proxy card.</td></tr><tr><td>Mail</td><td>If you received your proxy materials by mail, you may vote by mail by marking the enclosed proxy card, dating and signing it, and returning it in the postage-paid envelope provided or to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, N.Y. 11717.</td></tr><tr><td>In Person</td><td>You may vote your shares in person by attending the Annual Meeting and submitting your proxy at the meeting. Each stockholder may appoint only one proxy holder or representative to attend the Annual Meeting on his or her behalf.</td></tr></table>

All shares that have been voted properly by an unrevoked proxy will be voted at the Annual Meeting in accordance with your instructions. If you sign and submit your proxy card, but do not give voting instructions, the shares represented by that proxy will be voted for each proposal as our Board recommends.

## How to Revoke Your Proxy or Change Your Vote

A later vote by any means will cancel an earlier vote. You can revoke your proxy or change your vote before your proxy is voted at the Annual Meeting by giving written notice of revocation to: Corporate Secretary, Gartner, Inc., 56 Top Gallant Road, P.O. Box 10212, Stamford, Connecticut 06904-2212; or submitting another timely proxy by the Internet, telephone or mail; or attending the Annual Meeting to vote in person. If your shares are held in the name of a bank, broker or other holder of record, to vote at the Annual Meeting you must obtain a proxy executed in your favor from your bank, broker or other holder of record and bring it to the Annual Meeting in order to vote. Attendance at the Annual Meeting will not, by itself, revoke your prior proxy.

## How Many Votes You Have

Each stockholder has one vote for each share of our Common Stock owned on the Record Date for all matters being voted on.

## Quorum

A quorum is constituted by the presence, in person or by proxy, of holders of our Common Stock representing a majority of the number of shares of Common Stock entitled to vote. Abstentions and broker non-votes (described above) will be considered present to determine a quorum.



## Votes Required

Proposal One: Each nominee must receive more “FOR” votes than “AGAINST” votes to be elected. Abstentions and broker non-votes will have no effect on the outcome of the election. Any nominee who fails to achieve this threshold must tender his or her resignation from the Board pursuant to the Company’s majority vote standard.

Proposals Two and Three: The affirmative “FOR” vote of a majority of the votes cast is required to approve Proposal Two - the advisory (non-binding) approval of the Company’s executive compensation; and Proposal Three - the ratification of the appointment of KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2018. For Proposals Two and Three, abstentions have the same effect as “AGAINST” votes. Broker non-votes, if any, will have no effect on the outcome of these matters.

If any other matters are brought properly before the Annual Meeting, the persons named as proxies in the accompanying proxy card will have the discretion to vote on those matters for you. If for any reason any of the nominees is not available as a candidate for director at the Annual Meeting, the persons named as proxies will vote your proxy for such other candidate or candidates as may be nominated by the Board of Directors. As of the date of this Proxy Statement, we were unaware of any other matter to be raised at the Annual Meeting.

## What Are the Recommendations of the Board?

The Board of Directors recommends that you vote:

<table><tr><td>✓ FOR</td><td>Election of the eleven nominees to our Board of Directors</td></tr><tr><td>✓ FOR</td><td>Approval, on an advisory basis, of the compensation of our named executive officers</td></tr><tr><td>✓ FOR</td><td>Ratification of the appointment of KPMG LLP as our independent registered public accounting firm for fiscal 2018</td></tr></table>

## Who Is Distributing Proxy Materials and Bearing the Cost of the Solicitation?

This solicitation of proxies is being made by the Board of Directors and we will bear the entire cost of this solicitation, including costs associated with mailing the Notice and related Internet access to proxy materials, the preparation, assembly, printing, and mailing of this Proxy Statement, the proxy card, and any additional solicitation material that we may provide to stockholders. Gartner will request brokerage firms, fiduciaries and custodians holding shares in their names that are beneficially owned by others to solicit proxies from these persons and will pay the costs associated with such activities. The original solicitation of proxies may be supplemented by solicitation by telephone, electronic mail and other means by our directors, officers and employees. No additional compensation will be paid to these individuals for any such services. We have also retained Georgeson LLC to assist with the solicitation of proxies at an anticipated cost of $6,500, which will be paid by the Company.

## Where can I find the voting results of the Annual Meeting?

We will disclose voting results on a Form 8-K that will be filed with the SEC within four business days after the Annual Meeting, which will also be available on our investor relations website – www.investor.gartner.com.

## Who Can Answer Your Questions?

If you have questions about this Proxy Statement or the Annual Meeting, please call our Investor Relations Department at (203) 316-6537.



# THE BOARD OF DIRECTORS

## General Information about our Board of Directors

Our Board currently has eleven directors who serve for annual terms. Our CEO, Eugene A. Hall, has an employment agreement with the Company that obligates the Company to include him on the slate of nominees to be elected to our Board during the term of the agreement. See Executive Compensation – Employment Agreements with Executive Officers below. There are no other arrangements between any director or nominee and any other person pursuant to which the director or nominee was selected. None of our directors or executive officers is related to another director or executive officer by blood, marriage or adoption.

Each member of our Board has been nominated for re-election at the 2018 Annual Meeting. See Proposal One – Election of Directors on page 15. In October 2017, Eileen Serra was appointed to the Board for a term expiring at the 2018 Annual Meeting and has been recommended for election. Set forth below are the name, age, principal occupation for the last five years, public company board experience, selected additional biographical information and period of service as a director of the Company of each director, as well as a summary of each director’s experience, qualifications and background which, among other factors, support their respective qualifications to continue to serve on our Board.

<table><tr><td>Michael J. Bingle, 45, director since 2004</td><td>Mr. Bingle is a Managing Partner and Managing Director of Silver Lake, a private equity firm that he joined in January 2000. Prior thereto, he was a principal with Apollo Management, L.P., a private equity firm, and an investment banker at Goldman, Sachs &amp; Co. He is a former director of Ameritrade Holding Corporation and Virtu Financial Inc. Mr. Bingle&#x27;s investing, investment banking and capital markets expertise, coupled with his extensive working knowledge of Gartner (a former Silver Lake portfolio company), its financial model and core financial strategies, provide valuable perspective and guidance to our Board and Compensation Committee.</td></tr><tr><td>Peter E. Bisson, 60, director since 2016</td><td>Mr. Bisson retired from McKinsey &amp; Company, a global management consulting business, in 2016 where he last served as Director and Global Leader of the High Tech Practice. Mr. Bisson held a number of other leadership positions at McKinsey &amp; Company, including chair of its knowledge committee, which guides the firm&#x27;s knowledge investment and communication strategies, member of the firm&#x27;s shareholders committee, and leader of the firm&#x27;s strategy and telecommunications practices. In more than 30 years at McKinsey &amp; Company, Mr. Bisson advised a variety of multinational public companies in the technology-based products and services industry. Mr. Bisson is also a director of ADP. Mr. Bisson&#x27;s experience includes advising clients on corporate strategy and M&amp;A, design and execution of performance improvement programs and marketing and technology development, which qualifies him to serve as a director.</td></tr><tr><td>Richard J. Bressler, 60, director since 2006</td><td>Mr. Bressler is President, Chief Operating Officer and Chief Financial Officer of iHeartMedia, Inc., a mass media company, which filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in March 2018, and Chief Financial Officer of Clear Channel Outdoor Holdings, Inc., an outdoor advertising company. Prior to joining iHeartMedia, he served as Managing Director of Thomas H. Lee Partners, L.P., a Boston-based private equity firm, from 2006 to July 2013. He joined Thomas H. Lee Partners from his role as Senior Executive Vice President and Chief Financial Officer of Viacom Inc., where he managed all strategic, financial, business development and technology functions. Mr. Bressler has also served in various capacities with Time Warner Inc., including Chairman and Chief Executive Officer of Time Warner Digital Media and Executive Vice President and Chief Financial Officer of Time Warner Inc. Prior to joining Time Inc., he was a partner with the accounting firm of Ernst &amp; Young. Mr. Bressler is currently a director of iHeartMedia, Inc., and a former director of The Nielsen Company B.V. and Warner Music Group Corp. Mr. Bressler qualifies as an audit committee financial expert, and his extensive financial and operational roles at large U.S. public companies bring a wealth of management, financial, accounting and professional expertise to our Board and Audit Committee.</td></tr></table>



<table><tr><td>Raul E. Cesan, 70, director since 2012</td><td>Mr. Cesan is the Founder and Managing Partner of Commercial Worldwide LLC, an investment firm. Prior thereto, he spent 25 years at Schering - Plough Corporation, serving in various capacities of substantial responsibility: the President and Chief Operating Officer (from 1998 to 2001); Executive Vice President of Schering-Plough Corporation and President of Schering-Plough Pharmaceuticals (from 1994 to 1998); President of Schering Laboratories, U.S. Pharmaceutical Operations (from 1992 to 1994); and President of Schering - Plough International (from 1988 to 1992). Mr. Cesan is also a director of The New York Times Company.Mr. Cesan&#x27;s extensive operational and international experiences provide valuable guidance to our Board and Compensation Committee.</td></tr><tr><td>Karen E. Dykstra, 59, director since 2007</td><td>Ms. Dykstra served as Chief Financial and Administrative Officer from November 2013 to July 2015, and as Chief Financial Officer from September 2012 to November 2013, of AOL, Inc. From January 2007 until December 2010, Ms. Dykstra was a Partner of Plainfield Asset Management LLC (“Plainfield”), and she served as Chief Operating Officer and Chief Financial Officer of Plainfield Direct LLC, Plainfield&#x27;s business development company, from May 2006 to 2010, and as a director from 2007 to 2010. Prior thereto, she spent over 25 years with Automatic Data Processing, Inc., serving most recently as Chief Financial Officer from January 2003 to May 2006, and prior thereto as Vice President - Finance, Corporate Controller and in other capacities. Ms. Dykstra is a director of VMware, Inc. and Boston Properties, Inc., and a former director of Crane Co. and AOL, Inc.Ms. Dykstra qualifies as an audit committee financial expert, and her extensive management, financial, accounting and oversight experience provide important expertise to our Board and Audit Committee.</td></tr><tr><td>Anne Sutherland Fuchs, 70, director since 1999</td><td>Ms. Fuchs served as Group President, Growth Brands Division, Digital Ventures, a division of J.C. Penney Company, Inc., from November 2010 until April 2012. She also served as Chair of the Commission on Women&#x27;s Issues for New York City during the Bloomberg Administration, a position she held from 2002 through 2013. Previously, Ms. Fuchs served as a consultant to companies on branding and digital initiatives, and as a senior executive with operational responsibility at LVMH Moët Hennessy Louis Vuitton, Phillips de Pury &amp; Luxembourg and several publishing companies, including Hearst Corporation, Conde Nast, Hachette and CBS. Ms. Fuchs is also a director of Pitney Bowes Inc.Ms. Fuchs&#x27; executive management, content and branding skills plus operations expertise, her knowledge of government operations and government partnerships with the private sector, and her keen interest and knowledge of diversity, governance and executive compensation matters provide important perspective to our Board and its Governance and Compensation Committees.</td></tr><tr><td>William O. Grabe, 79, director since 1993</td><td>Mr. Grabe is an Advisory Director of General Atlantic LLC, a global private equity firm. Prior to joining General Atlantic in 1992, Mr. Grabe was a Vice President and Corporate Officer of IBM Corporation. Mr. Grabe is presently a director of QTS Realty Trust, Inc. and Lenovo Group Limited. He is a former director of Infotech Enterprises Limited, Compuware Corporation, iGate Computer Systems Limited (f/k/a Patni Computer Systems Ltd.) and Covisint Corporation.Mr. Grabe&#x27;s extensive senior executive experience, his knowledge of business operations and his vast knowledge of the global information technology industry have made him a valued member of the Board and Governance Committee.</td></tr></table>



<table><tr><td>Eugene A. Hall, 61, director since 2004</td><td>Mr. Hall is the Chief Executive Officer of Gartner. Prior to joining Gartner as Chief Executive Officer in 2004, Mr. Hall was a senior executive at Automatic Data Processing, Inc., a Fortune 500 global technology and service company, serving most recently as President, Employers Services Major Accounts Division, a provider of human resources and payroll services. Prior to joining ADP in 1998, Mr. Hall spent 16 years at McKinsey &amp; Company, most recently as Director.As Gartner&#x27;s CEO, Mr. Hall is responsible for developing and executing on the Company&#x27;s operating plan and business strategies in consultation with the Board of Directors and for driving Gartner&#x27;s business and financial performance, and is the sole management representative on the Board.</td></tr><tr><td>Stephen G. Pagliuca, 63, director since 1990 (except for 6 months in 2009 when he entered the U.S. Senate race for Massachusetts)</td><td>Mr. Pagliuca is a Managing Director of Bain Capital Private Equity, LP, a global private equity firm, and Co-Chairman of Bain Capital, L.P. He is also a Managing Partner and an owner of the Boston Celtics basketball franchise. Mr. Pagliuca joined Bain &amp; Company in 1982, and founded the Information Partners private equity fund for Bain Capital in 1989. Prior to joining Bain, Mr. Pagliuca worked as a senior accountant and international tax specialist for Peat Marwick Mitchell &amp; Company in the Netherlands. Mr. Pagliuca is a former director of Burger King Holdings, Inc., HCA, Inc. (Hospital Corporation of America), Quintiles Transnational Corporation and Warner Chilcott PLC. He currently serves on the Board of Directors of Axis Bank, Ltd., Virgin Voyages and The Weather Company.Mr. Pagliuca has deep subject matter knowledge of Gartner&#x27;s history, the development of its business model and the global information technology industry, as well as financial and accounting matters.</td></tr><tr><td>Eileen Serra, 63, director since October 2017</td><td>Ms. Serra retired from JPMorgan Chase &amp; Co., an international financial services company, in February 2018, where she last served as a Senior Advisor focusing on strategic growth initiatives across Chase Consumer and Community Banking businesses. From 2012 to 2016, she served as the CEO of Chase Card Services. Prior to joining Chase Card Services in 2006, Ms. Serra was a Managing Director at Merrill Lynch. She was a Senior Vice President at American Express and a partner at McKinsey &amp; Company earlier in her career.Ms. Serra has extensive operational and management experience, having held senior positions at some of the world&#x27;s largest companies, which allows her to provide valuable guidance to our Board.</td></tr><tr><td>James C. Smith, 77, director since 2002 and Chairman of the Board since 2004</td><td>Mr. Smith was Chairman of the Board of First Health Group Corp., a national health benefits company until its sale in 2004. He also served as First Health&#x27;s Chief Executive Officer from January 1984 through January 2002 and President from January 1984 to January 2001.Mr. Smith&#x27;s long-time expertise and experience as the founder, senior-most executive and chairman of the board of a successful large public company provides a unique perspective and insight into management and operational issues faced by the Board, Audit Committee and our CEO. This experience, coupled with Mr. Smith&#x27;s personal leadership qualities, qualify him to continue to serve as Chairman of the Board.</td></tr></table>

## Majority Vote Standard

The Company has adopted a majority vote standard for the election of directors which provides that a nominee must receive more FOR votes than AGAINST votes for election as a director. Should a nominee fail to achieve this threshold, the nominee must immediately tender his or her resignation to the Chairman. The Board, in its discretion, can determine whether or not to accept the resignation.

## Compensation of Directors

The Compensation Committee, in consultation with the Governance Committee, reviews all forms of independent director compensation and recommends changes, when appropriate. The Compensation and Governance Committees



are supported in this review by Exequity, LLP. The review examines director compensation in relation to two comparator groups: Peer Group and General Industry Reference Group. The Peer Group includes the same companies used to benchmark executive pay. The General Industry Reference Group includes 100 companies with median revenues similar to that of Gartner. Regular review of the director compensation program ensures that the director compensation is reasonable, and reflects a mainstream approach to the structure of the compensation components and the method of delivery. Director compensation is primarily reviewed in relation to the Peer Group. Gartner last raised director compensation in 2013; all pay elements were increased at that time to close an identified shortfall from the median. Based on the director compensation review conducted in January 2018, Gartner's director compensation trailed the Peer Group's 25th percentile. As a result, an increase in the director annual equity grant from $200,000 to $240,000 was approved, effective as of the 2018 Annual Meeting. An increase in equity compensation was the only change made to director compensation in following with Gartner's philosophy to provide more value in equity compensation than cash. The section that follows describes the director compensation program and components after this change.

Directors who are also employees receive no fees for their services as directors. Non-management directors are reimbursed for their meeting attendance expenses and receive the following compensation for their service as director:

<table><tr><td>Annual Director Retainer Fee:</td><td>$60,000 per director and an additional $100,000 for our non-executive Chairman of the Board, payable in arrears in four equal quarterly instalments, on the first business day of each quarter. These amounts are paid in common stock equivalents (“CSEs”) granted under the Company’s 2014 Long-Term Incentive Plan (“2014 Plan”), except that a director may elect to receive up to 50% of this fee in cash. The CSEs convert into Common Stock on the date the director’s continuous status as a director terminates, unless the director elects accelerated release as provided in the 2014 Plan. The number of CSEs awarded is determined by dividing the aggregate director fees owed for a quarter (other than any amount payable in cash) by the closing price of the Common Stock on the first business day following the close of that quarter.</td></tr><tr><td>Annual Committee Chair Fee:</td><td>$10,000 for the chair of our Governance Committee and $15,000 for the chairs of our Audit and Compensation Committees. Amounts are payable in the same manner as the Annual Director Retainer Fee.</td></tr><tr><td>Annual Committee Member Fee:</td><td>$7,500 for our Governance Committee members, $10,000 for our Compensation Committee members and $15,000 for our Audit Committee members. Committee chairs receive both a committee chair fee and a committee member fee. Amounts are payable in the same manner as the Annual Director Retainer Fee.</td></tr><tr><td>Annual Equity Grant:</td><td>$240,000 in value of restricted stock units (RSUs), awarded annually on the date of the Annual Meeting. The number of RSUs awarded is determined by dividing $240,000 by the closing price of the Common Stock on the award date. The restrictions lapse one year after grant subject to continued service as director through that date; release may be deferred at the director’s election.</td></tr></table>



## Director Compensation Table

This table sets forth compensation earned or paid in cash, and the grant date fair value of equity awards made, to our non-management directors on account of services rendered as a director in 2017. Mr. Hall receives no additional compensation for service as director.

<table><tr><td>Name</td><td>Fees Earned Or Paid (\()(1)</td><td>Stock Awards (\)) (2)(3)</td><td>Total ($)</td></tr><tr><td>Michael J. Bingle</td><td>73,125</td><td>199,905</td><td>273,030</td></tr><tr><td>Peter E. Bisson</td><td>64,375</td><td>199,905</td><td>264,280</td></tr><tr><td>Richard J. Bressler</td><td>90,000</td><td>199,905</td><td>289,905</td></tr><tr><td>Raul E. Cesan</td><td>70,000</td><td>199,905</td><td>269,905</td></tr><tr><td>Karen E. Dykstra</td><td>75,000</td><td>199,905</td><td>274,905</td></tr><tr><td>Anne Sutherland Fuchs</td><td>92,500</td><td>199,905</td><td>292,405</td></tr><tr><td>William O. Grabe</td><td>77,500</td><td>199,905</td><td>277,405</td></tr><tr><td>Stephen G. Pagliuca</td><td>60,000</td><td>199,905</td><td>259,905</td></tr><tr><td>Eileen Serra</td><td>10,108</td><td>117,183</td><td>127,291</td></tr><tr><td>James C. Smith</td><td>175,000</td><td>199,905</td><td>374,905</td></tr></table>

(1) Includes amounts earned in 2017 and paid in cash and/or CSEs on account of the Annual Director Retainer Fee, Annual Committee Chair Fee and/or Annual Committee Member Fee, described above. For Ms. Serra, represents the pro rata Annual Director Retainer Fee from October 31, 2017, the date of her appointment to the board. For Messrs. Bingle and Bisson, includes their respective prorated Governance Committee member fee for 2017. Mr. Bisson replaced Mr. Bingle as a member of the Governance Committee after their re-election at the 2017 Annual Meeting on June 1, 2017. Does not include reimbursement for meeting attendance expenses.

(2) Except for Ms. Serra, represents the grant date value of an annual equity award computed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, consisting of 1,658 RSUs that vest on June 1, 2018, one year from the date of the 2017 Annual Meeting (unless deferred release was elected), subject to continued service through that date. Accordingly, the number of RSUs awarded was calculated by dividing $200,000 by the closing price of our Common Stock on June 1, 2017 ($120.57).

(3) For Ms. Serra, represents the grant date value of an annual equity award computed in accordance with FASB ASC Topic 718, consisting of 999 RSUs that will vest on June 1, 2018, one year from the date of the 2017 Annual Meeting, subject to continued service through that date. The number of RSUs awarded was calculated by dividing $117,260 ($200,000 pro-rated from October 31, 2017, the date of her appointment to the board, to June 1, 2018) by the closing price of our Common Stock on November 15, 2017, the date of grant ($117.30).

## Director Stock Ownership and Holding Period Guidelines

The Board believes directors should have a financial interest in the Company. Accordingly, each director is required to hold shares of Gartner common stock with a value of not less than five (5) times the Annual Director Retainer Fee ($60,000). Directors are required to achieve the guideline within three years of joining the Board. In the event a director has not satisfied the guideline within the three year period, he/she will be required to hold 50% of net after-tax shares received from the Company either in the form of equity awards or released CSEs until the guideline is achieved. We permit directors to apply deferred and unvested equity awards towards satisfying these requirements. As of December 31, 2017, all of our directors were in compliance with these guidelines.



## CORPORATE GOVERNANCE

Gartner is committed to maintaining strong corporate governance practices.

<table><tr><td>Corporate Governance Highlights:</td></tr><tr><td>➢ Independent Chairman of the Board</td></tr><tr><td>➢ Majority voting for directors</td></tr><tr><td>➢ Annual election of directors</td></tr><tr><td>➢ Annual Board and Committee performance evaluation</td></tr><tr><td>➢ Executive sessions after each Board and Committee meeting</td></tr><tr><td>➢ 10 out of 11 directors are independent</td></tr><tr><td>➢ 3 out of 11 directors are women</td></tr><tr><td>➢ Fully independent Board committees</td></tr><tr><td>➢ Annual director affirmation of compliance with Code of Conduct</td></tr><tr><td>➢ Annual director evaluation of CEO</td></tr></table>

## Board Principles and Practices

Our Board Principles and Practices (the “Board Guidelines”) are reviewed annually and revised in light of legal, regulatory or other developments, as well as emerging best practices, by our Governance Committee and Board. The Board Guidelines, which are posted on www.investor.gartner.com, describe the Board’s responsibilities, its role in strategic development and other matters, discussed below.

## Director Independence

Our Board Guidelines require that our Board be comprised of a majority of directors who meet the criteria for independence from management set forth by the NYSE in its corporate governance listing standards.

Our committee charters likewise require that our standing Audit, Compensation and Governance/Nominating Committees be comprised only of independent directors. Additionally, the Audit Committee members must be independent under Section 10A-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Compensation Committee members must be independent under Rule 16b-3 promulgated under the Exchange Act as well as applicable NYSE corporate governance listing standards, and they must qualify as outside directors under regulations promulgated under Section 162(m) (“Section 162(m)”) of the Internal Revenue Code of 1986, as amended (the “Code”).

Utilizing all of these criteria, as well as all relevant facts and circumstances, the Board annually assesses the independence from management of all non-management directors and committee members by reviewing the commercial, financial, familial, employment and other relationships between each director and the Company, its auditors and other companies that do business with Gartner.

After analysis and recommendation by the Governance Committee, the Board determined that:

- all non-management directors (Michael Bingle, Peter Bisson, Richard Bressler, Raul Cesan, Karen Dykstra, Anne Sutherland Fuchs, William Grabe, Stephen Pagliuca, Eileen Serra and James Smith) are independent under the NYSE listing standards;



- our Audit Committee members (Ms. Dykstra and Messrs. Bressler and Smith) are independent under the criteria set forth in Section 10A-3 of the Exchange Act; and

- our Compensation Committee members (Ms. Fuchs and Messrs. Bingle and Cesan) are independent under the criteria set forth in Exchange Act Rule 16b-3 as well as under applicable NYSE corporate governance listing standards, and qualify as “outside directors” under Code Section 162(m) regulations.

## Board Leadership Structure

The leadership of our Board of Directors rests with our independent Chairman of the Board, Mr. James C. Smith. Gartner believes that the separation of functions between the CEO and Chairman of the Board provides independent leadership of the Board in the exercise of its management oversight responsibilities, increases the accountability of the CEO and creates transparency into the relationship among executive management, the Board of Directors and the stockholders. Additionally, in view of Mr. Smith's extensive experience as a chief executive officer of a major corporation, he is able to provide an independent point of view to our CEO on important management and operational issues.

## Risk Oversight

The Board of Directors, together with management, oversees risk at Gartner. The Company’s strategic objectives and activities are presented by executive management to the Board and approved annually and more frequently as necessary. The Audit Committee regularly receives updates on cybersecurity matters from the Company’s Chief Information Officer and discusses issues identified at its meetings.

The Risk (Internal Audit) function reports directly to the Audit Committee, and provides quarterly reports to the committee. The committee reviews the results of the internal audit annual risk assessment and the proposed internal audit plan. Subsequent quarterly meetings include an update on ongoing internal audit activities, including results of audits and any changes to the audit plan. Risk also meets with the Audit Committee in executive session on a quarterly basis.

The General Counsel, who serves as Chief Compliance Officer, also reports directly to the Audit Committee on a quarterly basis concerning the effectiveness and status of the Company’s legal and ethical compliance program and initiatives, hotline activities and litigation matters.

The Company maintains internal controls and procedures over financial reporting, as well as enterprise wide internal controls, which are updated and tested annually by management and our independent registered public accounting firm. Any internal control deficiencies and the status of remediation efforts as well as any findings of the Disclosure Controls Committee are reported to the Audit Committee on a quarterly basis.

## Risk Assessment of Compensation Policies and Practices

Management conducts an annual risk assessment of the Company’s compensation policies and practices, including all executive, non-executive and business unit compensation policies and practices, as well as the variable compensation policies applicable to our global sales force. The results of this assessment are reported to the Compensation Committee. In 2017, management concluded, and the Compensation Committee agreed, that no Company compensation policies and practices created risks that were reasonably likely to have a material adverse effect on the Company.

## Board and Committee Meetings and Annual Meeting Attendance

Our Board held seven meetings during 2017. During 2017, all of our directors attended at least 75% of the Board and committee meetings held during the periods in which such director served as a director and/or committee member. At each regular quarterly Board and committee meeting, time is set aside for the non-management directors to meet in executive session without management present. James C. Smith, our non-executive Chairman of the Board, presides over the executive sessions at the Board meetings, and each committee chairperson presides over the executive sessions at their respective committee meetings. Directors are not required, but are invited, to attend the Annual Meeting of Stockholders. In 2017, Mr. Hall and other executive officers of the Company attended the 2017 Annual Meeting of Stockholders.



## Committees Generally and Charters

As noted above, our Board has three standing committees: Audit, Compensation and Governance/Nominating, and all committee members have been determined by our Board to be independent under applicable standards. Our Board of Directors has approved a written charter for each standing committee, which is reviewed annually and revised as appropriate. The table below provides information for each Board committee in 2017:

<table><tr><td>Name</td><td>Audit</td><td>Compensation</td><td>Governance/Nominating</td></tr><tr><td>Michael J. Bingle</td><td></td><td>X</td><td></td></tr><tr><td>Peter E. Bisson</td><td></td><td></td><td>X*</td></tr><tr><td>Richard J. Bressler</td><td>X (Chair)</td><td></td><td></td></tr><tr><td>Raul E. Cesan</td><td></td><td>X</td><td></td></tr><tr><td>Karen E. Dykstra</td><td>X</td><td></td><td></td></tr><tr><td>Anne Sutherland Fuchs</td><td></td><td>X (Chair)</td><td>X</td></tr><tr><td>William O. Grabe</td><td></td><td></td><td>X (Chair)</td></tr><tr><td>Stephen G. Pagliuca</td><td></td><td></td><td></td></tr><tr><td>Eileen Serra</td><td></td><td></td><td></td></tr><tr><td>James C. Smith</td><td>X</td><td></td><td></td></tr><tr><td>Meetings Held in 2017:</td><td>5</td><td>7</td><td>4</td></tr></table>

* Mr. Bisson replaced Mr. Bingle as a member of the Governance Committee on June 1, 2017.

In 2017, the Board also delegated to a Special Finance Committee consisting of Messrs. Bingle, Pagliuca and Smith the authority to approve certain financing transaction relating to the acquisition of CEB Inc. The Special Finance Committee met once in 2017.

## Audit Committee

Our Audit Committee serves as an independent body to assist in Board oversight of:

✓ the integrity of the Company’s financial statements;

✓ the Company’s compliance with legal and regulatory requirements;

✓ the independent registered public accounting firm’s retention, qualifications and independence; and

✓ the Company’s Risk, Compliance and Internal Audit functions.

Gartner has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. Our Board has determined that both Ms. Dykstra and Mr. Bressler qualify as audit committee financial experts, as defined by the rules of the SEC, and that all members have the requisite accounting or related financial management expertise and are financially literate as required by the NYSE corporate governance listing standards.

Additionally, the Audit Committee is directly responsible for the appointment, compensation and oversight of our independent registered public accounting firm, KPMG; approves the engagement letter describing the scope of the annual audit; approves fees for audit and non-audit services; provides an open avenue of communication among the independent registered public accounting firm, the Risk and Internal Audit functions, management and the Board; resolves disagreements, if any, between management and the independent registered public accounting firm regarding financial reporting for the purpose of issuing an audit report in connection with our financial statements and our internal control over financial reporting; and prepares the Audit Committee Report required by the SEC and included in this Proxy Statement on page 51 below.



The independent registered public accounting firm reports directly to the Audit Committee. By meeting with the independent registered public accounting firm and the internal auditor, and operating and financial management personnel, the Audit Committee oversees matters relating to accounting standards, policies and practices, any changes thereto and the effects of any changes on our financial statements, financial reporting practices and the quality and adequacy of internal controls. Additionally, our internal audit and compliance functions report directly to the Audit Committee. After each Audit Committee meeting, the Committee meets separately with the CFO, the independent registered public accounting firm and the internal auditor without management present.

The Audit Committee has established procedures for (i) the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters, and (ii) the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters. A toll-free phone number managed by a third party is available for confidential and anonymous submission of concerns relating to accounting, auditing and other illegal or unethical matters, as well as alleged violations of Gartner’s Code of Conduct or any other policies. All submissions on the hotline are reported to the General Counsel, who determines the mode of investigation, to the internal auditor and to the Audit Committee at each regular meeting. The Audit Committee has the power and funding to retain independent counsel and other advisors as it deems necessary to carry out its duties.

## Compensation Committee

<table><tr><td>Our Compensation Committee has responsibility for:</td></tr><tr><td>✓ administering and approving all elements of compensation for the Chief Executive Officer and other executive officers;</td></tr><tr><td>✓ approving, by direct action or through delegation, all equity awards, grants, and related actions under the provisions of our equity plan, and administering the plan;</td></tr><tr><td>✓ participating in the evaluation of CEO performance (with the input and oversight of the Governance Committee and the Chairman of the Board);</td></tr><tr><td>✓ approving the peer group used for executive compensation benchmarking purposes;</td></tr><tr><td>✓ evaluating the independence of all compensation committee advisers; and</td></tr><tr><td>✓ providing oversight in connection with company-wide compensation programs.</td></tr></table>

The Compensation Committee reviewed and approved the Compensation Discussion and Analysis contained in this Proxy Statement, recommended its inclusion herein (and in our 2017 Annual Report on Form 10-K) and issued the related report to stockholders as required by the SEC (see Compensation Committee Report on page 31 below).

Exequity LLP (“Exequity”) was retained by the Compensation Committee to provide information, analyses, and advice to the Committee during various stages of 2017 executive compensation planning. Exequity reports directly to the Compensation Committee chair. In the course of conducting its activities, Exequity attended meetings of the Compensation Committee and briefed the Committee on executive compensation trends generally.

The Compensation Committee has assessed the independence of Exequity, and has concluded that Exequity is independent and that its retention presents no conflicts of interest either to the Committee or the Company.

Final decisions with respect to determining the amount or form of executive compensation under the Company’s executive compensation programs are made by the Compensation Committee alone and may reflect factors and considerations other than the information and advice provided by its consultants. Please refer to the Compensation Discussion & Analysis beginning on page 17 for a more detailed discussion of the Compensation Committee’s activities with respect to executive compensation.

Compensation Committee Interlocks and Insider Participation. During 2017, no member of the Compensation Committee served as an officer or employee of the Company, was formerly an officer of the Company or had any



relationship with the Company required to be disclosed under Transactions With Related Persons below. Additionally, during 2017, no executive officer of the Company: (i) served as a member of the compensation committee (or full board in the absence of such a committee) or as a director of another entity, one of whose executive officers served on our Compensation Committee; or (ii) served as a member of the compensation committee (or full board in the absence of such a committee) of another entity, one of whose executive officers served on our Board.

## Governance/Nominating Committee

<table><tr><td>Our Governance/Nominating Committee (the “Governance Committee”) has responsibility for:</td></tr><tr><td>✓ the size, composition and organization of our Board;</td></tr><tr><td>✓ the independence of directors and committee members under applicable standards;</td></tr><tr><td>✓ our corporate governance policies, including our Board Principles and Practices;</td></tr><tr><td>✓ the criteria for directors and the selection of nominees for election to the Board;</td></tr><tr><td>✓ committee assignments;</td></tr><tr><td>✓ the form and amount of director compensation;</td></tr><tr><td>✓ the performance evaluation of our CEO and management succession planning; and</td></tr><tr><td>✓ the annual Board and Committee performance evaluations.</td></tr></table>

While the Governance Committee has not specified minimum qualifications for candidates it recommends, it will consider the qualifications, skills, expertise, qualities, diversity, age, gender, availability and experience of all candidates that are presented for consideration. At the present time, three of our eleven directors are women. The Board utilizes a concept of diversity that extends beyond race, gender and national origin to encompass the viewpoints, professional experience and other individual qualities and attributes of candidates that will enable the Board to select candidates who are best able to carry out the Board’s responsibilities and complement the mix of talent and experience represented on the Board. In connection with its annual evaluation, the Board considers the appropriateness of the qualifications of existing directors given then current needs.

Candidates for Board nomination may be brought to the attention of the Governance Committee by current Board members, management, stockholders or other persons. All potential new candidates are fully evaluated by the Governance Committee using the criteria described above, and then considered by the entire Board for nomination. The appointment of Ms. Serra to the Board resulted from a search, led by members of the Governance Committee, to identify a potential independent candidate who also satisfied certain other criteria for Board membership discussed above. The Committee received suggestions from a variety of sources, including a third-party search firm.

Director Candidates submitted by Stockholders: Stockholders wishing to recommend director candidates for consideration by the Governance Committee may do so by writing to the Chairman of the Governance/Nominating Committee, c/o Corporate Secretary, Gartner, Inc., 56 Top Gallant Road, P.O. Box 10212, Stamford, CT 06904-2212, and indicating the recommended candidate's name, biographical data, professional experience and any other qualifications. In addition, stockholders wishing to propose candidates for election must follow our advance notice provisions. See Process for Submission of Stockholder Proposals for our 2019 Annual Meeting on page 52.

## Code of Ethics and Code of Conduct

Gartner has adopted a CEO & CFO Code of Ethics which applies to our CEO, CFO, controller and other financial managers, and a Global Code of Conduct, which applies to all Gartner officers, directors and employees, wherever located. Annually, each officer, director and employee affirms compliance with the Global Code of Conduct. See Miscellaneous—Available Information below.



# PROPOSAL ONE:

# ELECTION OF DIRECTORS

## Nominees for Election to the Board of Directors

Our Board, acting through the Governance Committee, is responsible for presenting for stockholder consideration each year a group of nominees that, taken together, has the experience, qualifications, attributes and skills appropriate and necessary to carry out the duties and responsibilities of, and to function effectively as, the board of directors of Gartner. The Governance Committee regularly reviews the composition of the Board in light of the needs of the Company, its assessment of board and committee performance, and the input of stockholders and other key stakeholders. The Governance Committee looks for certain common characteristics in all nominees, including integrity, strong professional experience and reputation, a record of achievement, constructive and collegial personal attributes and the ability and commitment to devote sufficient time and effort to board service. In addition, the Governance Committee seeks to include on the Board a complementary mix of individuals with diverse backgrounds and skills that will enable the Board as a whole to effectively manage the array of issues it will confront in furtherance of its duties. These individual qualities can include matters such as experience in the technology industry; experience managing and operating large public companies; international operating experience; financial, accounting, executive compensation and capital markets expertise; and leadership skills and experience.

All of the nominees listed below are incumbent directors who have been nominated by the Governance Committee and Board for re-election, and have agreed to serve another term. For additional information about the nominees and their qualifications, please see General Information about Our Board of Directors on page 5 above. If any nominee is unable or declines unexpectedly to stand for election as a director at the Annual Meeting, proxies may be voted for a nominee designated by the present Board to fill the vacancy. Each person elected as a director will continue to be a director until the 2019 Annual Meeting of Stockholders or a successor has been elected.

<table><tr><td>Michael J. Bingle</td><td>Anne Sutherland Fuchs</td></tr><tr><td>Peter E. Bisson</td><td>William O. Grabe</td></tr><tr><td>Richard J. Bressler</td><td>Eugene A. Hall</td></tr><tr><td>Raul E. Cesan</td><td>Stephen G. Pagliuca</td></tr><tr><td>Karen E. Dykstra</td><td>Eileen Serra</td></tr><tr><td></td><td>James C. Smith</td></tr></table>

## RECOMMENDATION OF OUR BOARD

Our Board unanimously recommends that you vote FOR management’s eleven nominees for election to the Board of Directors.



## EXECUTIVE OFFICERS

## General Information About our Current Executive Officers:

<table><tr><td>Eugene A. Hall 61</td><td>Chief Executive Officer and director since 2004. Prior to joining Gartner as Chief Executive Officer, he was a senior executive at Automatic Data Processing, Inc., a Fortune 500 global technology and services company, serving most recently as President, Employers Services Major Accounts Division, a provider of human resources and payroll services. Prior to joining ADP in 1998, Mr. Hall spent 16 years at McKinsey &amp; Company, most recently as Director.</td></tr><tr><td>Joe Beck 57</td><td>Executive Vice President, Global Technology Sales since November 2017. In his more than 20 years at Gartner, he has served as Senior Vice President, Americas End User Sales and Managing Vice President. Prior to joining Gartner, he held sales positions at McGraw-Hill.</td></tr><tr><td>Ken Davis 49</td><td>Executive Vice President, Products &amp; Services since August 2017, and Senior Vice President, Business and IT Leaders, Products &amp; Services since 2008. Previously at Gartner, he has served as Senior Vice President, End User Programs, High Tech &amp; Telecom Programs, and Strategy, Marketing and Business Development. Prior to joining Gartner in 2005, Mr. Davis spent ten years at McKinsey &amp; Company, where he was a partner assisting clients in the IT industry.</td></tr><tr><td>Alwyn Dawkins 52</td><td>Executive Vice President, Worldwide Events since August 2017, and Senior Vice President, Worldwide Events since 2008. Previously at Gartner, he has served as Group Vice President, Asia/Pacific Sales, based in Sydney, Australia, and prior thereto, as Group Vice President, Gartner Events, where he held global responsibility for exhibit and sponsorship sales across the portfolio of Gartner events. Prior to joining Gartner in 2002, Mr. Dawkins spent ten years at Richmond Events, culminating in his role as Executive Vice President responsible for its North American business.</td></tr><tr><td>Mike Diliberto, 52</td><td>Executive Vice President &amp; Chief Information Office since August 2017, and Senior Vice President &amp; Chief Information Officer since 2016. Previously, he served as CIO at Priceline, a leader in online travel and related services. Before joining Priceline, he held several senior technology positions at the online division of News Corp, where he was instrumental in establishing an online presence for News Corp brands such as Fox News, Fox Sports, TV Guide and Sky Sports, including launching the first major league baseball website. Previously, he held several leadership positions at Prodigy Services Company, one of the pioneering consumer-focused online services.</td></tr><tr><td>Scott Hensel 45</td><td>Executive Vice President, Consulting since October 2017. Prior to joining Gartner, he served as President, Terex Services, Parts and Customer Solutions, at Terex Corporation, a manufacturing company. Previously, he spent 14 years at McKinsey &amp; Company where he last served as a partner.</td></tr><tr><td>Jules Kaufman 60</td><td>Executive Vice President, General Counsel &amp; Secretary since August 2017. Prior to joining Gartner, he was Chief Legal Officer and Secretary at Coty Inc., a beauty products manufacturer, from 2008 through 2016. Previously, he spent 18 years at Colgate-Palmolive, last serving as General Counsel Europe/South Pacific.</td></tr><tr><td>Robin Kranich 47</td><td>Executive Vice President, Human Resources since August 2017, and Senior Vice President, Human Resources since 2008. During her more than 20 years at Gartner, she has served as Senior Vice President, End User Programs; Senior Vice President, Research Operations and Business Development; Senior Vice President and General Manager of Gartner EXP; Vice President and Chief of Staff to Gartner&#x27;s president; and various sales and sales management roles. Prior to joining Gartner, Ms. Kranich was part of the Technology Advancement Group at Marriott International.</td></tr><tr><td>David McVeigh 50</td><td>Executive Vice President, New Market Programs since August 2017, and Senior Vice President, New Markets Programs since August 2015. Prior to joining Gartner, he was a managing director at Hellman &amp; Friedman LLC, a private equity firm and an operating partner at Blackstone Group, and a partner at McKinsey &amp; Company.</td></tr><tr><td>Craig W. Safian 49</td><td>Executive Vice President &amp; Chief Financial Officer since August 2017, and Senior Vice President &amp; Chief Financial Officer since June 2014. In his 15 years at Gartner, he has served as Group Vice President, Global Finance and Strategy &amp; Business Development from 2007 until his appointment as CFO, and previously as Group Vice President, Strategy and Managing Vice President, Financial Planning and Analysis. Prior to joining Gartner, he held finance positions at Headstrong (now part of Genpact) and Bristol-Myers Squibb, and was an accountant for Friedman, LLP where he achieved CPA licensure.</td></tr><tr><td>Peter Sondergaard 54</td><td>Executive Vice President, Research since August 2017 and Senior Vice President, Research since 2004. During his 29 years at Gartner, he has held various roles, including Head of Research for the Technology &amp; Services Sector, Hardware &amp; Systems Sector, Vice President and General Manager for Gartner Research EMEA. Prior to joining Gartner, Mr. Sondergaard was research director at International Data Corporation in Europe.</td></tr><tr><td>Chris Thomas 46</td><td>Executive Vice President, Business Sales since August 2017, and Senior Vice President, Executive Programs since April 2013. During his almost 20 years at Gartner, he has held various roles, including Group Vice President, Sales, leading the Americas IT, Digital Marketing and Global Supply Chain sales group; head of North America and Europe, Middle East and Africa (EMEA) Small and Medium Business sales organizations, and a number of other roles, including sales operations and field sales leadership. Before joining Gartner, he spent seven years in procurement, sales and marketing at Exxon Mobil.</td></tr></table>



# COMPENSATION DISCUSSION & ANALYSIS

This Compensation Discussion & Analysis, or “CD&A”, describes and explains the Company’s compensation philosophy and executive compensation program, as well as compensation awarded to and earned by, the following persons who were Named Executive Officers (“NEOs”) in 2017:

<table><tr><td>Eugene A. Hall</td><td>Chief Executive Officer</td></tr><tr><td>Craig W. Safian</td><td>Executive Vice President &amp; Chief Financial Officer</td></tr><tr><td>Alwyn Dawkins</td><td>Executive Vice President, Worldwide Events</td></tr><tr><td>David McVeigh</td><td>Executive Vice President, New Market Programs</td></tr><tr><td>Peter Sondergaard</td><td>Executive Vice President, Research</td></tr><tr><td>Per Anders Waern \( ^{*} \)</td><td>Former Executive Vice President, Gartner Consulting</td></tr></table>

 \( ^{*} \)  Mr Waern’s last day of employment with the Company was December 1, 2017.

The CD&A is organized into three sections:

- The Executive Summary, which highlights the extraordinary year we had in 2017, including the acquisition of CEB, the importance of our Contract Value (herein “CV”) metric, our pay-for-performance approach, and our compensation practices, all of which we believe are relevant to stockholders as they consider their votes on Proposal Two (advisory vote on executive compensation, or “Say-on-Pay”)

• The Compensation Setting Process for 2017

• Other Compensation Policies and Information

The CD&A is followed by the Compensation Tables and Narrative Disclosures, which report and describe the compensation and benefit amounts paid to our NEOs in 2017.

## EXECUTIVE SUMMARY

## 2017 - An Extraordinary Year

As has been our long-term strategy, our business model focuses on highly renewable research-based subscriptions. The key to our success resides in providing indispensable research and advisory services to leaders in Technology, Supply Chain, and Marketing. For more than a decade, the combination of our business model and strong execution fuelled strong, sustained annualized double digit growth on all of our key metrics.

In January 2017, Gartner announced its intention to acquire CEB, a publicly traded company that also sells research-based subscriptions. CEB’s products are complementary to Gartner’s and expanded our research and advisory services across all major business functions, including: Technology, Supply Chain, Sales & Marketing, HR, and Finance.

From a scale and scope perspective, the CEB acquisition represented roughly a 50% increase in the number of employees and more than doubled Gartner’s product portfolio. In considering the acquisition, Gartner management planned to accomplish two main objectives in 2017:

1. Close the CEB acquisition in Q2 and establish an integration plan, including identification of synergies by year-end 2017.

2. Maintain double digit growth of the heritage Gartner research business (i.e., Gartner excluding CEB).

Our results on these two main objectives were strong. In fact, we exceeded both objectives:

✓ We closed the CEB acquisition in early April.



✓ Once the acquisition closed, we aggressively integrated the two companies. The two research organizations and the product teams are integrated. The heritage CEB destination events and Evanta businesses have been integrated into the heritage Gartner Events business. Staff functions such as HR, finance and IT have been integrated.

✓ We not only identified potential synergies, but we captured them sooner than originally planned.

✓ We accelerated investments needed to drive future growth in the heritage CEB research and advisory business.

✓ We developed a new set of products, introduced improved commercial terms, and improved retention.

✓ We determined that CEB’s Talent Assessment business did not fit strategically and completed the sale of that business in early April 2018.

In addition, heritage CEB contract value grew nearly 2% in 2017, faster than in recent years, and wallet retention improved by six percentage points, a remarkable improvement in a single year.

In parallel, the heritage Gartner subscription-based research segment grew at an accelerated pace of more than 15% on an FX neutral basis. Overall, our ability to close and integrate a substantial acquisition, while at the same time maintaining focus and accelerating growth of our heritage research business, was extraordinary.

## Contract Value–A Unique Key Performance Metric for Gartner

Total Contract Value (“CV”) represents the value attributable to all of our subscription-related contracts. It is calculated as the annualized value of contracts in effect at a specific point in time, without regard to the duration of the contract. CV primarily includes research deliverables for which revenue is recognized on a ratable basis and other deliverables (primarily events tickets) included with research products for which revenue is recognized when the deliverable is utilized.

Unique to Gartner, Contract Value is our single most important performance metric. It focuses all of our executives on driving both short-term and long-term success for our business and stockholders.

<table><tr><td colspan="2">Contract Value = Both Short-Term and Long-Term Measures of Success</td></tr><tr><td>Short-Term</td><td>✓ Measures the value of all subscription research contracts in effect at a specific point in time</td></tr><tr><td>Long-Term</td><td>✓ Measures revenue that is highly likely to recur over a multi-year period</td></tr></table>

Comparing CV year over year measures the short-term growth of our business. More importantly, CV is also an appropriate measure of long-term performance due to the nature of our Research subscription business. Our Research business is our largest business segment (75% of 2017 gross revenues) with our highest contribution margins (67% for 2017). Our Research enterprise client retention and retained contract value (or wallet retention) are consistently very high. The combination of annual contracts and high renewal rates are predictive of revenue highly likely to recur over a 3 – 5 year period.

The acquisition of CEB does not change this focus on CV, but rather reinforces its importance.

Accordingly, growing CV drives both short-term and long-term corporate performance and shareholder value. As such, all Gartner executives and associates are focused at all times on growing CV. This, coupled with the fact that our investors are also focused on this metric, ensures that we are aligned on the long-term success of the Company.



Our strong results have fuelled stock price growth which lead comparison groups as shown below.



## Key Attributes of our Executive Compensation Program – Pay for Performance

<table><tr><td>Our executive compensation plan design has successfully motivated senior management to drive outstanding corporate performance since it was first implemented in 2006. It is heavily weighted towards incentive compensation.</td></tr><tr><td>Its key features are as follows:</td></tr><tr><td>✓ 100% of executive equity awards and executive bonus awards are performance-based (with exception to acquisition-related awards).</td></tr><tr><td>✓ 70% of our executive equity awards, and 100% of our executive bonus awards are subject to forfeiture in the event the Company fails to achieve performance objectives established by our Compensation Committee.</td></tr><tr><td>✓ 91% percent of our CEO&#x27;s target total compensation (80% in the case of our other NEOs) is in the form of incentive compensation (bonus and equity awards).</td></tr><tr><td>✓ 82% of our CEO&#x27;s target total compensation (65% in the case of our other NEOs) is in the form of equity awards.</td></tr><tr><td>✓ Earned equity awards may increase or decrease in value based upon stock price movement during the vesting period.</td></tr></table>



## Our Compensation Best Practices

<table><tr><td>Our compensation practices motivate our executives to achieve our operating plans and execute our corporate strategy without taking undue risks. These practices, which are consistent with “best practices” trends, include the following:</td></tr><tr><td>✓ We have an independent Compensation Committee.</td></tr><tr><td>✓ We have an independent compensation consultant that reports directly to the Compensation Committee.</td></tr><tr><td>✓ We annually assess the Company’s compensation policies to ensure that the features of our program do not encourage undue risk.</td></tr><tr><td>✓ All executive officers are “at will” employees and only our CEO has an employment agreement.</td></tr><tr><td>✓ We have a clawback policy applicable to all executive incentive compensation (cash bonus and equity awards).</td></tr><tr><td>✓ We have robust stock ownership guidelines for our directors and executive officers.</td></tr><tr><td>✓ We have holding period requirements that require 50% of net after tax shares from all released equity awards to be held by a director or executive officer until stock ownership guidelines are satisfied.</td></tr><tr><td>✓ We prohibit hedging and pledging transactions in company securities.</td></tr><tr><td>✓ We do not provide excise tax gross up payments.</td></tr><tr><td>✓ We encourage retention by providing for equity awards that vest 25% per year over 4 years, commencing on the grant date anniversary.</td></tr><tr><td>✓ The potential annual payout on incentive compensation elements is limited to 2 times target.</td></tr><tr><td>✓ Our equity plan prohibits:</td></tr><tr><td>○ a vesting period of less than 12 months on equity awards;</td></tr><tr><td>○ repricing stock options and surrendering outstanding options for new options with a lower exercise price without stockholder approval;</td></tr><tr><td>○ cash buyouts of underwater options or stock appreciation rights without stockholder approval;</td></tr><tr><td>○ “liberal share recycling”; and</td></tr><tr><td>○ granting options or stock appreciation rights with an exercise price less than the fair market value of the Company’s common stock on the date of grant.</td></tr><tr><td>✓ We do not grant equity awards to our directors or executive officers during closed trading windows.</td></tr></table>

## COMPENSATION SETTING PROCESS FOR 2017

This discussion explains the objectives of the Company’s compensation policies; what the compensation program is designed to reward; each element of compensation and why the Company chooses to pay each element; how the Company determines the amount (and, where applicable, the formula) for each element to pay; and how each compensation element and the Company’s decisions regarding that element fit into the Company’s overall compensation objectives and affect decisions regarding other elements.



## The Objectives of the Company’s Compensation Policies

<table><tr><td>The objectives of our compensation policies are threefold:</td></tr><tr><td>➢ to attract, motivate and retain highly talented, creative and entrepreneurial individuals by paying market-based compensation;</td></tr><tr><td>➢ to motivate our executives to maximize the performance of our Company through pay-for-performance compensation components based on the achievement of corporate performance targets that are aggressive, but attainable, given economic conditions; and</td></tr><tr><td>➢ to ensure that, as a public company, our compensation structure and levels are reasonable from a stockholder perspective.</td></tr></table>

## What the Compensation Program Is Designed to Reward

Our guiding philosophy is that the more executive compensation is linked to corporate performance, the stronger the inducement is for management to strive to improve Gartner’s performance. In addition, we believe that the design of the total compensation package must be competitive with the marketplace from which we hire our executive talent in order to achieve our objectives and attract and retain individuals who are critical to our long-term success. Our compensation program for executive officers is designed to compensate individuals for achieving and exceeding corporate performance objectives. We believe this type of compensation encourages outstanding team performance (not simply individual performance), which builds stockholder value.

Both short-term and long-term incentive compensation is earned by executives only upon the achievement by the Company of certain measurable performance objectives that are deemed by the Compensation Committee and management to be critical to the Company’s short-term and long-term success. The amount of compensation ultimately earned will increase or decrease depending upon Company performance and the underlying price of our Common Stock (in the case of long-term equity-based incentive compensation).

## Principal Compensation Elements and Objectives

To achieve the objectives noted above, we have designed executive compensation to consist of three principal elements:

<table><tr><td>Base Salary</td><td>➢ Pay competitive salaries to attract and retain the executive talent necessary to develop and implement our corporate strategy and business plan</td></tr><tr><td></td><td>➢ Reflect responsibilities of the position, experience of the executive and marketplace in which we compete for talent</td></tr><tr><td>Short-Term Incentive Compensation (cash bonuses)</td><td>➢ Motivate executives to generate outstanding performance and achieve or exceed annual operating plan</td></tr><tr><td></td><td>➢ Align compensation with results</td></tr><tr><td>Long-Term Incentive Compensation (equity awards)</td><td>➢ Ensure rewards are commensurate with long-term performance and promote retention</td></tr><tr><td></td><td>➢ Align executive rewards with long-term stock price appreciation</td></tr><tr><td></td><td>➢ Facilitate the accumulation of Gartner shares by executives, thereby enhancing ownership and ensuring greater alignment with stockholders</td></tr></table>

## How the Company Determines Executive Compensation

## In General

The Company set aggressive performance goals in planning 2017 executive compensation. In order for our executives to earn target compensation, the Company needed to exceed double digit growth in two key performance metrics, as discussed below.



The Compensation Committee established performance objectives for short-term (bonus) and long-term (equity) incentive awards at levels that it believed would motivate performance and be adequately challenging. The target performance objectives were intended to compel the level of performance necessary to enable the Company to achieve its operating plan for 2017.

As in prior years, the short-term and long-term incentive compensation elements provided executives with opportunities to increase their total compensation package based upon the over-achievement of corporate performance objectives; similarly, in the case of under-achievement of corporate performance objectives, the value of these incentive elements would fall below their target value (with the possibility of total forfeiture of the short-term element and 70% of the long-term element), and total compensation would decrease correspondingly. We assigned greater weight to the long-term incentive compensation element, as compared to the salary and short-term elements, in order to promote long-term decision-making that would deliver top corporate performance, align management to stockholder interests and retain executives. We believe that long-term equity-based awards with vesting terms that are based on the achievement of pre-set financial targets serve as a strong retention incentive.

Salary, short-term and long-term incentive compensation levels for executive officers (other than the CEO) are recommended by the CEO and are subject to approval by the Compensation Committee. In formulating his recommendation to the Compensation Committee, the CEO undertakes a performance review of these executives and considers input from human resources personnel at the Company, as well as benchmarking data from the compensation consultant and external market data (discussed below).

Salary, short-term and long-term incentive compensation levels for the CEO’s compensation are established by the Compensation Committee within the parameters of Mr. Hall’s employment agreement with the Company. In making its determination with respect to Mr. Hall’s compensation, the Compensation Committee evaluates his performance in conjunction with the Governance Committee and after soliciting additional input from the Chairman of the Board and other directors; considers input from the Committee’s compensation consultant; and reviews benchmarking data pertaining to CEO compensation practices at our peer companies and general trends. See Employment Agreements with Executive Officers – Mr. Hall below for a detailed discussion of Mr. Hall’s agreement.

Effect of Stockholder Advisory Vote on Executive Compensation, or Say on Pay

## 2017 Say on Pay Approval = 99% of votes cast

The Board has resolved to present Say on Pay proposals to stockholders on an annual basis, respecting the sentiment of our stockholders as expressed in 2017. The Company and the Compensation Committee will consider the results on this year’s advisory Say on Pay proposal in future executive compensation planning activities. Over the past several years, stockholders have consistently strongly supported our executive compensation program. As such, no specific changes were made to the compensation program as a result of the 2017 Say of Pay vote.

## Benchmarking and Peer Group

Executive compensation planning for 2017 began mid-year in 2016. Our Compensation Committee commissioned Exequity, an independent compensation consultant, to perform a competitive analysis of our executive compensation practices (the “Compensation Study”). Exequity’s findings were considered by the Compensation Committee and by management in planning our 2017 executive compensation program. The Compensation Study utilized market data provided by Aon Hewitt pertaining to compensation paid to individuals occupying senior executive positions at Gartner’s selected peer group of companies for executive compensation benchmarking purposes (the “Peer Group”), effective as of January 1, 2017.

The Compensation Committee reviews the Peer Group annually to ensure comparability based on Gartner’s operating characteristics, labor market relevance and defensibility. The 2017 competitive analysis compared Gartner’s target compensation to the Peer Group. The Peer Group comprised 17 publicly-traded companies that resemble Gartner in size (in terms of revenues and number of employees), have a similar business model and with whom Gartner competes.



for executive talent. Gartner ranked at the 43rd percentile in revenues relative to the Peer Group. Peer Group companies included:

<table><tr><td>Adobe Systems Incorporated</td><td>Intuit Inc.</td></tr><tr><td>Autodesk, Inc.</td><td>Moody&#x27;s Corporation</td></tr><tr><td>CA Inc.</td><td>Nuance Communications, Inc.</td></tr><tr><td>Cadence Design Systems, Inc.</td><td>PTC Inc.</td></tr><tr><td>Citrix Systems, Inc.</td><td>Redhat Inc.</td></tr><tr><td>The Dun &amp; Bradstreet Corporation</td><td>salesforce.com, inc</td></tr><tr><td>Equifax Inc.</td><td>Synopsys, Inc.</td></tr><tr><td>IHS Markit Ltd</td><td>Verisign, Inc.</td></tr><tr><td></td><td>Verisk Analytics, Inc.</td></tr></table>

Management and the Compensation Committee concluded that the Peer Group, which was established in mid-2016 (well before the decision to acquire CEB) was appropriate for 2017 executive compensation planning purposes given comparability to Gartner.

The Compensation Committee does not target NEO’s pay to a specified percentile relative to the Peer Group, but rather reviews Peer Group market data at the 25 \( ^{th} \) , 50 \( ^{th} \)  and 75 \( ^{th} \)  percentile for each element of compensation, including Base Salary, Target Total Cash (Base Salary, plus Target Bonus) and Target Total Compensation (Target Total Cash plus long-term incentives).

The result of the competitive analysis indicated that for 2016 Gartner’s aggregate NEO (including CEO) Base Salary approximated the Peer Group median, whereas Target Total Cash and Target Total Compensation trailed the median, with variance in positioning by executive. In order to remain competitive in the market place and in light of Gartner’s philosophy to pay a greater percentage of total compensation in the form of performance-based compensation and, in particular, performance-based long-term incentive compensation, the Committee approved a 3% merit increase to base salary, a 5% point increase to target bonus, and an 8% merit increase to the annual long-term incentive compensation award value for all NEOs (other than Mr. Hall and Mr. Safian) for 2017. Mr. Hall received a 5% merit increase to his annual long-term incentive award value only. Mr. Safian is still relatively new in his role of CFO, and as a result trailed the market median of the Peer Group in all elements of compensation. Consistent with the Company’s philosophy of moving executives to fully competitive rates over two to three years, the Committee adjusted his compensation by increasing his base salary by 6.8%, his target bonus percent by 5%, and increasing his annual long-term incentive award value by 15%. The table below summarizes these increases for 2017:

<table><tr><td>NEO</td><td>Base Salary</td><td>Target Bonus Percent</td><td>Long-term Incentive Award</td></tr><tr><td>Eugene A. Hall</td><td>0%</td><td>0%</td><td>5%</td></tr><tr><td>Craig W. Safian</td><td>6.8%</td><td>5%</td><td>15%</td></tr><tr><td>Alwyn Dawkins</td><td>3%</td><td>5%</td><td>8%</td></tr><tr><td>David McVeigh</td><td>3%</td><td>5%</td><td>8%</td></tr><tr><td>Peter Sondergaard</td><td>3%</td><td>5%</td><td>8%</td></tr><tr><td>Per Anders Waern</td><td>3%</td><td>5%</td><td>8%</td></tr></table>

In addition, the Compensation Committee annually reviews an analysis conducted by Exequity that evaluates the connection between Gartner’s executive pay and Company performance as measured by Total Shareholder Return and Shareholder Value against the relationship exhibited by Gartner’s peer group. The analysis indicates that pay realized by Gartner’s NEOs is generally well aligned with financial results. Gartner has historically performed above the peer



group median and has paid at or above median total compensation which is consistent with the Company’s pay-for-performance philosophy.

## One-time Special Acquisition Award for CEO

To recognize the effort needed to successfully acquire and integrate CEB, the Compensation Committee approved a one-time special acquisition award for Mr. Hall, in addition to his annual long-term incentive award. The one-time special acquisition award consisted of performance stock units that would vest only if the CEB acquisition was completed in 2017 and certain synergy and integration goals were achieved for CEB including, among other things, the establishment of an integration plan and the identification of synergies by year-end 2017. The grant value of the special acquisition award was $1,000,000 (which translated to 10,093 performance stock units at target based on the closing stock price of our Common Stock on the date of grant). The Compensation Committee reserved the right to reduce the number of performance stock units that would actually vest based upon operational and strategic results attributable to the acquisition. The special acquisition award was not considered to be a part of Mr. Hall’s on-going target compensation.

## Other Acquisition-Related Compensation Changes

Subsequent to the acquisition of CEB, given the expanded roles and responsibilities of the management team in the combined Gartner and CEB business, the Compensation Committee approved a one-time restricted stock unit grant to all NEOs (other than Mr. Hall and Mr. Waern) lifting target total compensation by approximately 8%. The restricted unit award would vest over four years. On a go forward basis, the value of the awards are added to the equity component of each recipient's total target compensation to reflect the executives' enhanced responsibilities, with the continued split of 70% performance-based restricted stock units (PSUs) and 30% stock appreciation rights (SARs).

## Executive Compensation Elements Generally

## Pay Mix

The following pie charts illustrate the relative mix of target compensation elements for the NEOs in 2017 (excluding Mr. Hall’s one-time special acquisition award since it is not part of Mr. Hall’s ongoing target compensation). Long-term incentive compensation consists of PSUs, SARs and time-based restricted stock units (RSUs), and represents a majority of the compensation we pay to our NEOs—82% to the CEO and 65% to all other NEOs. We allocate more heavily to long-term incentive compensation because we believe that it contributes to a greater degree to the delivery of top performance and the retention of employees than does cash and short-term compensation (bonus).



All other NEOs



## Base Salary

We set base salaries of executive officers when they join the Company or are promoted to an executive role, by evaluating the responsibilities of the position, the experience of the individual and the marketplace in which we compete for the executive talent we need. In addition, where possible, we consider salary information for comparable positions for members of our Peer Group or other available benchmarking data. In determining whether to award salary merit



increases, we consider published projected U.S. salary increase data for the technology industry and general market, as well as available world-wide salary increase data. Mr. Hall’s salary increase is established each year by the Compensation Committee after completion of Mr. Hall’s performance evaluation for the preceding year. The following table sets forth the 2016 and 2017 base salary of each NEO and the corresponding year-over-year percentage increase:

<table><tr><td>NEO</td><td>2016 Base Salary ($)</td><td>2017 Base Salary ($)</td><td>Percentage Increase</td></tr><tr><td>Eugene A. Hall</td><td>908,197</td><td>908,197</td><td>0%</td></tr><tr><td>Craig W. Safian</td><td>515,000</td><td>550,000</td><td>6.8%</td></tr><tr><td>Alwyn Dawkins</td><td>451,402</td><td>464,944</td><td>3%</td></tr><tr><td>David McVeigh</td><td>451,402</td><td>464,944</td><td>3%</td></tr><tr><td>Peter Sondergaard</td><td>451,402</td><td>464,944</td><td>3%</td></tr><tr><td>Per Anders Waern</td><td>451,402</td><td>464,944</td><td>3%</td></tr></table>

## Short-Term Incentive Compensation (Cash Bonuses)

All bonuses to executive officers are awarded pursuant to Gartner’s stockholder-approved Executive Performance Bonus Plan. This plan is designed to motivate executive officers to achieve goals relating to the performance of Gartner, its subsidiaries or business units, or other objectively determinable goals, and to reward them when those objectives are satisfied. We believe that the relationship between proven performance and the amount of short-term incentive compensation paid promotes, among executives, decision-making that increases stockholder value and promotes Gartner’s success. Bonuses awarded under this plan to eligible employees were designed in 2017 to qualify as deductible performance-based compensation within the meaning of Code Section 162(m) as in effect when the bonus opportunities for 2017 were established.

In 2017, bonus targets for all NEOs, including Mr. Hall, were based solely upon achievement of 2017 company-wide financial performance objectives (with no individual performance component). The financial objectives and weightings used for 2017 executive officer bonuses were:

- 2017 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), which measures overall profitability from business operations (weighted 50%), on a foreign exchange neutral basis, and

- Contract Value (CV) at December 31, 2017 which, as described above, measures the long–term prospects of our business (weighted 50%), on a foreign exchange neutral basis.

Management and our Compensation Committee continue to believe that EBITDA and CV are the most significant measurements of profitability and long-term business growth for our Company, respectively. They have been successfully used for several years as performance metrics applicable to short-term incentive compensation that drive business performance and that motivate executive officers to achieve outstanding performance.

For 2017, each executive officer was assigned a bonus target that was expressed as a percentage of salary, which varied from 65% to 105% of salary depending upon the executive’s level of responsibility and in most cases was 5% greater than the previous year. With respect to our NEOs, 2017 bonus targets as a percentage of base salary, were 105% for Mr. Hall and 75% for each of Messrs. Safian, Dawkins, McVeigh, Sondergaard and Waern. The maximum payout for 2017 bonus was 200% of target if the maximum level of EBITDA and CV were achieved; the minimum payout was $0 if



minimum levels were not achieved. The following table sets forth the threshold, target and maximum payout amounts for each NEO:

<table><tr><td>NEO</td><td>Threshold ($)</td><td>Target ($)</td><td>Maximum ($)</td></tr><tr><td>Eugene A. Hall</td><td>0</td><td>953,607</td><td>1,907,214</td></tr><tr><td>Craig W. Safian</td><td>0</td><td>412,500</td><td>825,000</td></tr><tr><td>Alwyn Dawkins</td><td>0</td><td>348,708</td><td>697,416</td></tr><tr><td>David McVeigh</td><td>0</td><td>348,708</td><td>697,416</td></tr><tr><td>Peter Sondergaard</td><td>0</td><td>348,708</td><td>697,416</td></tr><tr><td>Per Anders Waern</td><td>0</td><td>348,708</td><td>697,416</td></tr></table>

The chart below describes the performance metrics applicable to our 2017 short-term incentive compensation element. When adopting these financial metrics, the Compensation Committee expressly reserved authority to exercise negative discretion to adjust our actual results to exclude the effects of the CEB acquisition. In December 2017, the Compensation Committee certified that the results for each performance metrics under the bonus plan were as follows:

<table><tr><td>2017 Performance Objective/ Weight</td><td>Target (100%)</td><td>&lt; Minimum (0%)</td><td>=/> Maximum (200%)</td><td>Results</td></tr><tr><td>2017 EBITDA/50%</td><td>$501 million</td><td>$406 million</td><td>$537 million</td><td>$665 million</td></tr><tr><td>12/31/17 Contract Value/50%</td><td>$2,112 million</td><td>$1,713 million</td><td>$2,207 million</td><td>$2,185 million \( ^{(1)} \)</td></tr></table>

(1) For the CV of L2, Inc., which we acquired in March 2017, the CV Result above only includes incremental increase in L2 CV since date of acquisition.

At the time targets were established, Gartner had not acquired CEB and the timeline of the completion of the acquisition (if at all) was uncertain. In order to establish the performance metrics in the required timeframe, the Compensation Committee set the targets based solely on heritage Gartner performance and the target 2017 EBITDA and CV values above represent double digit organic growth.

The Contract Value results in the table above represent CV of the heritage Gartner business in 2017, which translated to a payout percentage of 180.4%. For the EBITDA component, given it was not possible to separate EBITDA of heritage Gartner from heritage CEB, the EBITDA results above represent the results of the combined company in 2017 (including the results of CEB after the acquisition), which translated to a payout percentage of 200%. However, the Compensation Committee used its authority to reduce the payout percentage of the EBITDA metric to 120% based on an evaluation of the Company’s overall performance. Since each objective was weighted 50%, based on these results, the Compensation Committee determined that earned cash bonuses for each NEO (other than Mr. Waern) were 150.2% of target bonus amounts. These bonuses were paid in February 2018. See Summary Compensation Table – Non-Equity Incentive Plan Compensation for the amount of cash bonuses earned by our NEOs in 2017.

For Mr. Waern, pursuant to his separation agreement, his cash bonus was paid at target level on his separation date.

## Long – Term Incentive Compensation (Equity Awards)

Promoting stock ownership is a key element of our compensation program philosophy. Stock-based incentive compensation awards—especially when they are assigned a combination of performance and time-based vesting criteria—induce enhanced performance, promote retention of executive officers and align executives’ personal rewards with long-term stock price appreciation, thereby integrating management and stockholder interests. We have evaluated different types of long-term incentives based on their motivational value, cost to the Company and appropriate share utilization under our stockholder-approved 2014 Long-Term Incentive Plan (“2014 Plan”) and have determined that generally stock-settled stock appreciation rights (“SARs”) and performance-based restricted stock units (“PSUs”) create the right balance of motivation, retention, alignment with stockholders and share utilization.



SARs permit executives to benefit from an increase in stock price over time. SAR value can be realized only after the SAR vests. Our SARs are stock-settled and vested SARs may be exercised up to seven years from grant date. When the SAR is exercised, the executive receives shares of our Common Stock equal in value to the aggregate appreciation in the price of our Common Stock from the date of grant to the exercise date for all SARs exercised. Therefore, SARs only have value to the extent the price of our Common Stock exceeds the grant price of the SAR. In this way, SARs motivate our executives to increase stockholder value and thus align their interests with those of our stockholders.

PSUs offer executives the opportunity to receive our Common Stock contingent on the achievement of performance goals and continued service over the vesting period. PSU recipients are eligible to earn a target fixed number of restricted stock units if and to the extent stipulated one-year performance goals are achieved. They can earn more units if the Company over-performs (up to 200% of their target number of units), and they will earn fewer units (and potentially none) if the Company under-performs. PSUs encourage executives to increase stockholder value while promoting executive retention over the long-term. Released shares have value even if our Common Stock price does not increase, which is not the case with SARs.

Consistent with weightings in prior years, when the compensation program was established in early 2017, 30% of each executive’s long-term incentive compensation award value was granted in SARs and 70% was granted in PSUs. PSUs deliver value utilizing fewer shares since the executive can earn the full share rather than just the appreciation in value over the grant price (as is the case with SARs). Additionally, the cost efficiency of PSUs enhances the Company’s ability to conservatively utilize the 2014 Plan share pool, which is why we conveyed a larger portion of the 2017 overall long-term incentive compensation value in PSUs rather than in SARs. For purposes of determining the number of SARs awarded, the allocated SAR award value is divided by the Black-Scholes-Merton valuation on the date of grant using assumptions appropriate on that date. For purposes of determining the target number of PSUs awarded, the allocated target PSU award value is divided by the closing price of our Common Stock on the date of grant as reported by the New York Stock Exchange.

As discussed under “—How the Company Determines Executive Compensation—Other Acquisition-Related Compensation Changes”, the Committee approved in mid-2017 an adjustment to the total target compensation of all the NEOs (other than Mr. Hall and Mr. Waern) of approximately 8% given the expanded roles and responsibilities of the management team as a result of the CEB acquisition. For 2017, the Committee approved a one-time, time-based restricted stock unit grant to raise the 2017 total target compensation of these NEOs to the new target level. We expect the mix of equity awards of each executive’s long-term incentive compensation to return to 30% and 70% of SARs and PSUs, respectively, going forward.

All SARs, PSUs and RSUs are earned, vest and, with respect to PSUs and RSUs, release 25% per year commencing one (1) year from grant and on each anniversary thereof, subject to continued service on the applicable vesting date. We believe that this vesting schedule effectively focuses our executives on delivering long-term value growth for our stockholders and drives retention. The maximum payout for the 2017 PSUs was 200% of target if the maximum level of CV was achieved; the PSUs are subject to forfeiture if minimum levels of performance are not achieved.

The Compensation Committee approved CV (measured at December 31, 2017) as the performance measure underlying PSUs awarded in 2017. As noted earlier, we continue to believe that CV is the best performance metric to measure the long-term prospects of our business because it is predictive of future revenue.

The chart below describes the performance metrics applicable to the PSU portion of our 2017 long-term incentive compensation element measured on a foreign exchange neutral basis:

<table><tr><td>2017 Performance Objective/Weight</td><td>Target (100%)</td><td>Target Growth YOY</td><td>&lt; Minimum (0%)</td><td>Maximum (200%)</td><td>Actual (measured at 12/31/17)</td><td>Payout (% of Target)</td><td>Actual Growth YOY</td></tr><tr><td>Contract Value/100%</td><td>$2,112 million</td><td>11%</td><td>$1,713 million</td><td>$2,207 million</td><td>$2,191 million \( ^{1} \)</td><td>185.7%</td><td>15.1%</td></tr></table>

(1) For the CV of L2, Inc., which we acquired in March 2017, the Actual CV above only includes incremental increase in L2 CV since date of acquisition.



The CV target represented double digit growth. Actual CV of the heritage Gartner business certified by the Compensation Committee in early 2018 was $2,191 million, exceeding the target amount. Based on this, the Compensation Committee determined that 185.7% of the target number of PSUs was earned based on the established performance goals. The PSUs were adjusted by this factor in early 2018 after certification of the achievement of this performance measure by the Compensation Committee, and 25% of the adjusted awards vested on the first anniversary of the grant date. See Grants of Plan-Based Awards Table - Possible Payouts Under Equity Incentive Plan Awards and accompanying footnotes below for the actual number of SARs and PSUs awarded to our NEOs in 2017.

With regard to Mr. Hall’s special acquisition award, all performance elements related to the CEB acquisition were met or exceeded and the Committee determined that the full target award should be earned, i.e., no negative discretion was applied. (See Executive Summary – 2017 – An Extraordinary Year for a discussion of the achievements in 2017 relating to the CEB acquisition.) This one-time award is included in the “Stock Awards” column for Mr. Hall in the Summary Compensation Table.

## Additional Compensation Elements

We maintain a non-qualified deferred compensation plan for our highly compensated employees, including our executive officers, to assist eligible participants with retirement and tax planning by allowing them to defer compensation in excess of amounts permitted to be deferred under our 401(k) plan. This plan allows eligible participants to defer up to 50% of base salary and/or 100% of bonus to a future period. In addition, as a further inducement to participation in this plan, the Company presently matches contributions by executive officers, subject to certain limits. For more information concerning this plan, see Non-Qualified Deferred Compensation Table and accompanying narrative and footnotes below.

In order to further achieve our objective of providing a competitive compensation package with great retention value, we provide various other benefits to our executive officers that we believe are typically available to, and expected by, persons in senior business roles. Our basic executive perquisites program includes 35 days paid time off (PTO) annually, severance and change in control benefits (discussed below) and relocation services where necessary due to a promotion. Mr. Hall’s perquisites, severance and change in control benefits are governed by his employment agreement with the Company, which is discussed in detail below under Employment Agreements With Executive Officers – Mr. Hall. For more information concerning perquisites, see Other Compensation Table and accompanying footnotes below.

## OTHER COMPENSATION POLICIES AND INFORMATION

## Executive Stock Ownership and Holding Period Guidelines

In order to align management and stockholder interests, the Company has adopted stock ownership guidelines for our executive officers as follows: the CEO is required to hold shares of Common Stock with a value at least equal to six (6) times his base salary, and all other executive officers are required to hold shares of Common Stock with a value at least equal to three (3) times their base salary. For purposes of computing the required holdings, officers may count shares directly held, as well as vested and unvested restricted stock units and PSUs, but not options or SARs.

Additionally, the Company imposes a holding period requirement on our executive officers. If an executive officer of the Company is not in compliance with the stock ownership guidelines, the executive is required to maintain ownership of at least 50% of the net after-tax shares of Common Stock acquired from the Company pursuant to all equity-based awards received from the Company, until such individual's stock ownership requirement is met. At December 31, 2017, all the NEOs were in compliance with these guidelines.

## Clawback Policy

The Company has adopted a clawback policy which provides that the Board of Directors (or a committee thereof) may seek recoupment to the Company from a current or former executive officer of the Company who engages in fraud, omission or intentional misconduct that results in a required restatement of any financial reporting under the securities



or other laws, and that the cash-based or equity-based incentive compensation paid to the officer exceeds the amount that should have been paid based upon the corrected accounting restatement, resulting in an excess payment. Recoupment includes the reimbursement of any cash-based incentive compensation (bonuses) paid to the executive, cancellation of vested and unvested performance-based restricted stock units, stock options and stock appreciation rights, and reimbursement of any gains realized on the sale of released stock unit awards and the exercise of stock options or stock appreciation rights and subsequent sale of underlying shares.

Pursuant to the Dodd-Frank Act, the SEC has issued proposed rules applicable to the national securities exchanges (including the NYSE on which our Common Stock is listed for trading) prohibiting the listing of any security of an issuer that does not provide for the recovery of erroneously awarded incentive-based compensation where there has been an accounting restatement. We are awaiting adoption of the final SEC rules on this matter, at which time we will determine whether an amendment to our policy is necessary.

## Hedging and Pledging Policies

The Company’s Insider Trading Policy prohibits all executive officers and directors from engaging in any short selling, hedging and/or pledging transactions with respect to Company securities.

## Accounting and Tax Impact

In setting 2017 compensation, the Compensation Committee and management considered the potential impact of Code Section 162(m), which, as in effect at the time compensation decisions for 2017 were made, precluded a public corporation from deducting on its corporate income tax return individual compensation in excess of $1 million for its chief executive officer or any of its three other highest-paid officers (other than the chief financial officer). In addition, Section 162(m), as in effect at the time compensation decisions for 2017 were made, provided for certain exemptions to this limitation, specifically compensation that was performance-based (within the meaning of Section 162(m)) and issued under a stockholder-approved plan would not be subject to the deduction limitation. Beginning in 2018, as a result of the Tax Cuts and Jobs Act (“the Act”) that was enacted on December 22, 2017, this performance-based exemption has been eliminated and the individuals whose compensation is subject to the deduction limitation has been expanded to cover the chief financial officer and certain former named executive officers. Our 2017 short-term incentive (bonus) awards and the PSU component of the 2017 long-term incentive awards were designed to qualify for the performance-based exemption to Section 162(m) as in effect when those awards/opportunities were granted. While the performance-based exception no longer exists, we will continue to operate our programs based on our pay-for-performance philosophy. As was the case prior to the change in the tax code, the Compensation Committee reserves the right to issue awards to our named executive officers that are not tax deductible under Section 162(m) because the Compensation Committee may conclude that it is in the best interests of the Company and our stockholders.

## Grant of Equity Awards

The Board of Directors has a formal policy with respect to the grant of equity awards under our equity plans. Under our 2014 Plan, equity awards may include stock options, stock appreciation rights, restricted stock awards (RSAs), restricted stock units and performance-based restricted stock units. The Compensation Committee may not delegate its authority with respect to Section 16 persons, nor in any other way which would jeopardize the plan’s qualification under Code Section 162(m) (as in effect prior to 2018) or Exchange Act Rule 16b-3. Accordingly, our policy specifies that all awards to our Section 16 executive officers must be approved by the Compensation Committee on or prior to the award grant date, and that all such awards will be made and priced on the date of Compensation Committee approval, except in the case of new hires, which is discussed below.

Our 2014 Plan provides for a minimum vesting period of 12 months on all equity awards, subject to certain limited exceptions. It also prohibits the repricing of stock options and the surrender of any outstanding option to the Company as consideration for the grant of a new option with a lower exercise price without stockholder approval. It prohibits the granting of options with an exercise price less than the fair market value of the Company’s common stock on the date of grant, and a cash buyout of out-of-the-money options or SARs without stockholder approval. The plan also prohibits “liberal share recycling”.



Consistent with the 2014 Plan, the Compensation Committee annually approves a delegation of authority to the CEO to make equity awards under our equity Plan to Gartner employees (other than Section 16 reporting persons) on account of new hires, retention or promotion without the approval of the Compensation Committee. In 2017, the delegation of authority specified a maximum grant date award value of $500,000 per individual, and a maximum aggregate grant date award value of $7,000,000 for the calendar year, an increase from prior year's authorization due to the acquisition of CEB. For purposes of this computation, in the case of RSAs, RSUs and PSUs, value is calculated based upon the fair market value (defined as the closing price on the date of grant as reported by the New York Stock Exchange) of a share of our Common Stock, multiplied by the number of RSAs, RSUs or PSUs awarded. In the case of options and SARs, the grant date value of the award will be the Black-Scholes-Merton calculation of the value of the award using assumptions appropriate on the award date. Any awards made under the CEO-delegated authority are reported to the Compensation Committee at the next regularly scheduled committee meeting.

As discussed above, the structure and value of annual long-term incentive awards comprising the long-term incentive compensation element of our compensation package to executive officers are established and approved by the Compensation Committee in the first quarter of each year. The specific terms of the awards (number of PSUs and SARs and related performance criteria) are determined, and the awards are approved and made, on the same date and after the release of the Company’s prior year financial results.

It is the Company’s policy not to make equity awards to executive officers prior to the release of material non-public information. Generally speaking, awards for newly hired executives that are given as an inducement to joining the Company are made on the 15 \( ^{th} \)  or 30 \( ^{th} \)  day of the month first following the executive’s start date, and retention and promotion awards are made on the 15 \( ^{th} \)  or 30 \( ^{th} \)  day of the month first following the date of Compensation Committee approval; however, we may delay making these awards pending the release of material non-public information.



## COMPENSATION COMMITTEE REPORT

The Compensation Committee of the Board of Directors of Gartner, Inc. has reviewed and discussed the Compensation Discussion and Analysis with management. Based upon this review and discussion, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the Company’s proxy statement for the 2018 Annual Meeting of Stockholders.

Compensation Committee of the Board of Directors

Anne Sutherland Fuchs

Michael J. Bingle

Raul E. Cesan



## COMPENSATION TABLES AND NARRATIVE DISCLOSURES

All compensation data contained in this Proxy Statement is stated in U.S. Dollars.

## Summary Compensation Table

This table describes compensation earned by our NEOs in the years indicated. As you can see from the table and consistent with our compensation philosophy discussed above, long-term incentive compensation in the form of equity awards comprises a significant portion of total compensation.

<table><tr><td>Name and Principal Position</td><td>Year</td><td>Base Salary (1)</td><td>Stock Awards (2)</td><td>Option Awards (2)</td><td>Non-Equity Incentive Plan Compensation (1), (3)</td><td>All Other Compensation (4)</td><td>Total</td></tr><tr><td>Eugene A. Hall, Chief Executive Officer (PEO) (5)</td><td>2017</td><td>908,197</td><td>6,889,130</td><td>2,523,939</td><td>1,432,317</td><td>120,647</td><td>11,874,230</td></tr><tr><td></td><td>2016</td><td>901,584</td><td>5,608,763</td><td>2,403,764</td><td>1,203,451</td><td>125,308</td><td>10,242,870</td></tr><tr><td></td><td>2015</td><td>875,324</td><td>5,193,290</td><td>2,225,705</td><td>1,215,044</td><td>125,170</td><td>9,634,533</td></tr><tr><td>Craig W. Safian, EVP &amp; Chief Financial Officer (PFO)</td><td>2017</td><td>541,250</td><td>1,374,873</td><td>492,851</td><td>619,575</td><td>47,158</td><td>3,075,707</td></tr><tr><td></td><td>2016</td><td>503,260</td><td>999,949</td><td>428,561</td><td>454,951</td><td>49,631</td><td>2,436,352</td></tr><tr><td></td><td>2015</td><td>457,402</td><td>842,783</td><td>361,205</td><td>419,223</td><td>26,027</td><td>2,106,640</td></tr><tr><td>Alwyn Dawkins, EVP, Events</td><td>2017</td><td>461,559</td><td>1,076,004</td><td>386,189</td><td>523,759</td><td>43,530</td><td>2,491,041</td></tr><tr><td></td><td>2016</td><td>448,115</td><td>834,385</td><td>357,588</td><td>398,769</td><td>48,036</td><td>2,086,893</td></tr><tr><td></td><td>2015</td><td>435,063</td><td>772,577</td><td>331,090</td><td>392,545</td><td>44,728</td><td>1,976,003</td></tr><tr><td>David McVeigh, EVP, New Market Programs</td><td>2017</td><td>461,559</td><td>1,076,004</td><td>386,189</td><td>523,759</td><td>34,675</td><td>2,482,186</td></tr><tr><td>Peter Sondergaard, EVP, Research</td><td>2017</td><td>461,559</td><td>1,076,004</td><td>386,189</td><td>523,759</td><td>36,790</td><td>2,484,301</td></tr><tr><td>Per Anders Waern, Former EVP, Gartner Consulting</td><td>2017</td><td>424,602</td><td>901,042</td><td>386,189</td><td>348,708</td><td>699,519</td><td>2,760,060</td></tr><tr><td></td><td>2016</td><td>448,115</td><td>834,385</td><td>357,588</td><td>398,769</td><td>50,078</td><td>2,088,935</td></tr><tr><td></td><td>2015</td><td>435,063</td><td>772,577</td><td>331,090</td><td>392,545</td><td>44,571</td><td>1,975,846</td></tr></table>

(1) All NEOs elected to defer a portion of their 2017 salary and/or 2017 bonus under the Company’s Non-Qualified Deferred Compensation Plan. Amounts reported include the 2017 deferred portion, and accordingly does not include amounts, if any, released in 2017 from prior years’ deferrals. See Non-Qualified Deferred Compensation Table below.

(2) Represents the aggregate grant date fair value computed in accordance with FASB ASC Topic 718 of performance-based restricted stock units, or PSUs (Stock Awards), time-based restricted stock units, or RSUs (Stock Awards), and stock-settled stock appreciation rights, or SARs (Option Awards), granted to the NEOs. For 2017, Mr. Hall received an annual PSU award ($5,889,216) and a one-time special acquisition award ($999,914) (as discussed in the CD&A), and an annual SAR award. Messrs. Safian, Dawkins, McVeigh and Sondergaard each received an annual PSU award, a special RSU award, and an annual SAR award. Mr. Waern received an annual PSU award and an annual SAR award. For 2016 and 2015, each of the NEOs received an annual PSU award and an annual SAR award. The value reported for the annual PSU awards is based upon the probable outcome of the performance objective as of the grant date, which is consistent with the grant date estimate of the aggregate compensation cost to be recognized over the service period, excluding the effect of forfeitures, for the target grant date award value. The potential maximum value of all PSUs (other than the one-time PSU award granted to Mr. Hall), assuming attainment of the highest level of the performance conditions, is



200% of the target value. The grant date fair value of these PSUs assuming maximum payout is as follows: $11,778,432 (Mr. Hall); $2,299,811 (Mr. Safian); $1,802,083 (Messrs. Dawkins, McVeigh, Sondergaard and Waern). The potential maximum value of Mr. Hall's one-time special acquisition award is 100% of the target value. All PSUs, RSUs and SARs are subject to forfeiture. See footnote (2) to Grants of Plan-Based Awards Table below for additional information. See also Note 8 – Stock-Based Compensation - in the Notes to Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2017 for additional information.

(3) Represents performance-based cash bonuses earned at December 31 of the applicable year and paid in the following February. See footnote (1) to Grants of Plan-Based Awards Table below for additional information.

(4) See Other Compensation Table below for additional information.

(5) Mr. Hall is a party to an employment agreement with the Company. See Employment Agreements With Executive Officers – Mr. Hall below.

## Other Compensation Table

This table describes each component of the All Other Compensation column in the Summary Compensation Table for 2017.

<table><tr><td>Name</td><td>Company Match Under Defined Contribution Plans (1)</td><td>Company Match Under Non-qualified Deferred Compensation Plan (2)</td><td>Other (3)</td><td>Total</td></tr><tr><td>Eugene A. Hall</td><td>7,200</td><td>77,293</td><td>36,154</td><td>120,647</td></tr><tr><td>Craig W. Safian</td><td>7,200</td><td>32,655</td><td>7,304</td><td>47,158</td></tr><tr><td>Alwyn Dawkins</td><td>7,200</td><td>27,221</td><td>9,109</td><td>43,530</td></tr><tr><td>David McVeigh</td><td>7,200</td><td>27,221</td><td>254</td><td>34,675</td></tr><tr><td>Peter Sondergaard</td><td>7,200</td><td>27,221</td><td>2,369</td><td>36,790</td></tr><tr><td>Per Anders Waern</td><td>7,200</td><td>8,751</td><td>683,568</td><td>699,519</td></tr></table>

(1) Represents the Company’s 4% matching contribution in all years to the NEO’s 401(k) account (subject to limitations).

(2) Represents the Company’s matching contribution to the executive’s contributions to our Non-Qualified Deferred Compensation Plan. See Non-Qualified Deferred Compensation Table below for additional information.

(3) In addition to specified perquisites and benefits, includes other perquisites and personal benefits provided to the executive.

For Mr. Hall, includes a car allowance of $29,204 received by him per the terms of his employment agreement. Also includes a tax gross-up payment of $3,413 that the Company paid to reimburse him on an after-tax basis for the income imputed in respect of his spouse’s trip to the Company’s Winner’s Circle, which is a reward event for the Company’s top sales associates.

For Mr. Safian, includes a tax gross up payment of $3,767 that the Company paid to reimburse him on an after-tax basis for the income imputed in respect of his spouse’s trip to the Company’s Winner’s Circle.

For Mr. Dawkins, includes tax gross-up payments of $958 and $3,613 that the Company paid to reimburse him on an after-tax basis for the income imputed in respect of certain tax services he received and his spouse’s trip to the Company’s Winner’s Circle, respectively.



For Mr. McVeigh, includes a tax gross-up payment of $94 that the Company paid to reimburse him on an after-tax basis for the income imputed in respect of his spouse’s trip to the Company’s Winner’s Circle.

For Mr. Sondergaard, includes tax gross-up payments of $958 and $200 that the Company paid to reimburse him on an after-tax basis for the income imputed in respect of certain tax services he received and his spouse’s trip to the Company’s Winner’s Circle, respectively.

For Mr. Waern, pursuant to his separation agreement, he received (i) a severance payment of $464,944 representing 52 weeks of his base salary, (ii) a payment of $50,000 for relocation expenses, (iii) tax preparation assistance of $30,000, (iv) other tax and other cash payment consideration of $85,000, and (v) $44,704 for his accrued but unused vacation days. He also received a tax gross-up payment of $958 and $3,423 that the Company paid to reimburse him on an after-tax basis for the income imputed in respect of certain tax services he received during the year and his spouse’s trip to the Company’s Winner’s Circle, respectively.

## Grants of Plan-Based Awards Table

This table provides information about awards made to our NEOs in 2017 pursuant to non-equity incentive plans (our short-term incentive cash bonus program) and equity incentive plans (performance restricted stock units (PSUs), restricted stock units (RSUs) and stock appreciation rights (SARs) awards comprising long-term incentive compensation under our 2014 Plan).

<table><tr><td rowspan="2">Name</td><td rowspan="2">Grant Date</td><td colspan="3">Possible Payouts Under Non-Equity Incentive Plan Awards (1)</td><td colspan="3">Possible Payouts Under Equity Incentive Plan Awards (2)</td><td rowspan="2">All other stock awards: Number of shares of stock or units (#)(2)</td><td rowspan="2">All other option awards: Number of securities underlying options (#)(2)</td><td rowspan="2">Exercise or Base Price of Option Awards ($/Sh) ($)(3)</td><td rowspan="2">Grant Date Fair Value of Stock and Option Awards ($)(4)</td></tr><tr><td>Threshold ($)</td><td>Target ($)</td><td>Maximum ($)</td><td>Threshold (#)</td><td>Target (#)</td><td>Maximum (#)</td></tr><tr><td>Eugene A. Hall</td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>0</td><td>59,445 PSUs</td><td>118,890 PSUs</td><td>-</td><td>-</td><td>-</td><td>5,889,216</td></tr><tr><td></td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>0</td><td>10,093 PSUs</td><td>10,093 PSUs</td><td>-</td><td>-</td><td>-</td><td>999,914</td></tr><tr><td></td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>114,600 SARs</td><td>99.07</td><td>2,523,939</td></tr><tr><td></td><td>-</td><td>0</td><td>953,607</td><td>1,907,214</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Craig W. Safian</td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>0</td><td>11,607 PSUs</td><td>23,214 PSUs</td><td>-</td><td>-</td><td>-</td><td>1,149,905</td></tr><tr><td></td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>22,378 SARs</td><td>99.07</td><td>492,851</td></tr><tr><td></td><td>-</td><td>0</td><td>412,500</td><td>825,000</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td></td><td>8/10/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,921 RSUs</td><td>-</td><td>-</td><td>224,968</td></tr><tr><td>Alwyn Dawkins</td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>0</td><td>9,095 PSUs</td><td>18,190 PSUs</td><td>-</td><td>-</td><td>-</td><td>901,042</td></tr><tr><td></td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>17,535 SARs</td><td>99.07</td><td>386,189</td></tr><tr><td></td><td>-</td><td>0</td><td>348,708</td><td>697,416</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td></td><td>8/10/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,494 RSUs</td><td>-</td><td>-</td><td>174,962</td></tr><tr><td>David McVeigh</td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>0</td><td>9,095 PSUs</td><td>18,190 PSUs</td><td>-</td><td>-</td><td>-</td><td>901,042</td></tr><tr><td></td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>17,535 SARs</td><td>99.07</td><td>386,189</td></tr><tr><td></td><td>-</td><td>0</td><td>348,708</td><td>697,416</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td></td><td>8/10/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,494 RSUs</td><td>-</td><td>-</td><td>174,962</td></tr><tr><td>Peter Sondergaard</td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>0</td><td>9,095 PSUs</td><td>18,190 PSUs</td><td>-</td><td>-</td><td>-</td><td>901,042</td></tr><tr><td></td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>17,535 SARs</td><td>99.07</td><td>386,189</td></tr><tr><td></td><td>-</td><td>0</td><td>348,708</td><td>697,416</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td></td><td>8/10/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,494 RSUs</td><td>-</td><td>-</td><td>174,962</td></tr><tr><td>Per Anders Waern</td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>0</td><td>9,095 PSUs</td><td>18,190 PSUs</td><td>-</td><td>-</td><td>-</td><td>901,042</td></tr><tr><td></td><td>2/6/17</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>17,535 SARs</td><td>99.07</td><td>386,189</td></tr><tr><td></td><td>-</td><td>0</td><td>348,708</td><td>697,416</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td></tr></table>



(1) Represents cash bonuses that could have been earned in 2017 based solely upon achievement of specified financial performance objectives for 2017 and ranging from 0% (threshold) to 200% (maximum) of target (100%). Bonus targets (expressed as a percentage of base salary) were 105% for Mr. Hall, and 75% for each of Messrs. Safian, Dawkins, McVeigh, Sondergaard and Waern. Performance bonuses earned in 2017 and paid in February 2018 were adjusted to 150.2% of their target bonus, except in the case of Mr. Waern, who was paid his target bonus pursuant to his separation agreement on his separation date. The cash bonuses are reported under Non-Equity Incentive Plan Compensation in the Summary Compensation Table. See Short-Term Incentive Compensation (Cash Bonuses) in the CD&A for additional information.

(2) Represents the number of PSUs (including the annual PSU award and, in the case of Mr. Hall, the one-time special acquisition award) and SARs awarded to the NEOs on February 6, 2017, as well as RSUs awarded to Messrs. Safian, Dawkins, McVeigh and Sondergaard on August 10, 2017. The target number of PSUs (100%) for the annual PSU award was subject to adjustment ranging from 0% (threshold) to 200% (maximum) based solely upon achievement of an associated financial performance objective, and was adjusted to 185.7% of target in February 2018. The adjusted number of such PSUs awarded was: Mr. Hall – 110,389; Mr. Safian – 21,554; Messrs. Dawkins, McVeigh, Sondergaard and Waern – 16,889). All PSUs, RSUs and SARs vest 25% per year commencing one year from grant, subject to continued employment on the vesting date except in the case of death, disability and retirement. See Long-Term Incentive Compensation (Equity Awards) in the CD&A for additional information. Pursuant to Mr. Waern’s separation agreement, all of his unvested PSUs and unvested SARs that were scheduled to vest in the 12 months following the separation date vested on his separation date. All his other unvested equity awards were forfeited.

(3) Represents the closing price of our Common Stock on the New York Stock Exchange on the grant date.

(4) See footnote (2) to the Summary Compensation Table.

## Employment Agreements with Executive Officers

Our Chief Executive Officer, Mr. Hall, is a party to a long-term employment agreement with the Company. No other NEO has an employment agreement with the Company.

## Mr. Hall – Employment Agreement

The Company and Mr. Hall are parties to an Amended and Restated Employment Agreement pursuant to which Mr. Hall has agreed to serve as chief executive officer of the Company and is entitled to be nominated to the board of directors (the “CEO Agreement”) until December 31, 2021. The CEO Agreement provides for automatic one year renewals commencing on January 1, 2022, and continuing each year thereafter, unless either party provides the other with at least 60 days prior written notice of an intention not to extend the term.



Under the CEO Agreement, Mr. Hall is entitled to the following annual compensation components:

<table><tr><td>Component</td><td>Description</td></tr><tr><td>Base Salary</td><td>➢ $908,197, subject to adjustment on an annual basis by the Compensation Committee</td></tr><tr><td>Target Bonus</td><td>➢ 105% of annual base salary (target), adjusted for achievement of specified Company and individual objectives➢ The actual bonus paid may be higher or lower than target based upon over- or under- achievement of objectives, subject to a maximum actual bonus of 210% of base salary</td></tr><tr><td>Long-term incentive award</td><td>➢ Aggregate annual value on the date of grant at least equal to $9,874,375 minus the sum of base salary and target bonus for the year of grant (the “Annual Incentive Award”)➢ The Annual Incentive Award will be 100% unvested on the date of grant, and vesting will depend upon the achievement of performance goals to be determined by the Compensation Committee➢ The terms and conditions of each Annual Incentive Award will be determined by the Compensation Committee, and will be divided between restricted stock units (RSUs) and stock appreciation rights (SARs)➢ The number of RSUs initially granted each year will be based upon the assumption that specified Company objectives set by the Compensation Committee will be achieved, and may be adjusted so as to be higher or lower than the number initially granted for over- or under- achievement of such specified Company objectives</td></tr><tr><td>Other</td><td>➢ Car allowance➢ All benefits provided to senior executives, executives and employees of the Company generally from time to time, including medical, dental, life insurance and long-term disability➢ Entitled to be nominated for election to the Board</td></tr></table>

## Termination and Related Payments – Mr. Hall

## Involuntary or Constructive Termination (no Change in Control)

Mr. Hall’s employment is at will and may be terminated by him or us upon 60 days’ notice. If we terminate Mr. Hall’s employment involuntarily (other than within 24 months following a Change In Control (defined below)) and without Business Reasons (as defined in the CEO Agreement) or a Constructive Termination (as defined in the CEO Agreement) occurs, or if the Company elects not to renew the CEO Agreement upon its expiration and Mr. Hall



terminates his employment within 90 days following the expiration of the CEO Agreement, then Mr. Hall will be entitled to receive the following benefits:

<table><tr><td>Component</td><td>Description</td></tr><tr><td>Base Salary</td><td>➢ accrued base salary and unused paid time off (“PTO”) through termination➢ 36 months continued base salary paid pursuant to normal payroll schedule</td></tr><tr><td>Short-Term Incentive Award (Bonus)</td><td>➢ earned but unpaid bonus➢ 300% of the average of Mr. Hall’s earned annual bonuses for the three years preceding termination, payable in a lump sum</td></tr><tr><td>Long-Term Incentive Award</td><td>➢ 36 months’ continued vesting in accordance with their terms (including achievement of applicable performance objectives) of all outstanding equity awards➢ a lump sum payment in cash equal to the value of any ungranted Annual Incentive Awards, multiplied by the percentage of such award that would vest within 36 months following termination (i.e., 75% in the case of a four year vesting period)</td></tr><tr><td>Other</td><td>➢ reimbursement for up to 36 months’ COBRA premiums for Mr. Hall and his family</td></tr></table>

Payment of severance amounts is conditioned upon execution of a general release of claims against the Company and compliance with 36 month non-competition and non-solicitation covenants. In certain circumstances, payment will be delayed for six months following termination under Code Section 409A.

## Involuntary or Constructive Termination, and Change in Control

Within 24 months of a Change In Control: if Mr. Hall’s employment is terminated involuntarily and without Business Reasons; or a Constructive Termination occurs; or if the Company elects not to renew the CEO Agreement upon its expiration and Mr. Hall terminates his employment within 90 days following the expiration of the CEO Agreement (i.e., double trigger), Mr. Hall will be entitled to receive the following benefits:

<table><tr><td>Component</td><td>Description</td></tr><tr><td>Base Salary</td><td>➢ accrued base salary and unused PTO through termination➢ 3 times base salary then in effect, payable 6 months following termination</td></tr><tr><td>Short-Term Incentive Award (Bonus)</td><td>➢ any earned but unpaid bonus➢ 3 times target bonus for fiscal year in which Change In Control occurs, payable 6 months following termination</td></tr><tr><td>Long-Term Incentive Award</td><td>➢ any ungranted but earned Annual Incentive Awards➢ all unvested outstanding equity will vest in full, all performance goals or other vesting criteria will be deemed achieved at target levels and all stock options and SARs will be exercisable as to all covered shares</td></tr><tr><td>Other</td><td>➢ reimbursement for up to 36 months’ COBRA premiums for Mr. Hall and his family</td></tr></table>

Immediately upon a Change In Control, all of Mr. Hall’s unvested outstanding equity awards will vest in full, all performance goals or other vesting criteria will be deemed achieved at target levels and all stock options and SARs will



be exercisable as to all covered shares. Additionally, any ungranted, but accrued Annual Incentive Awards will be awarded prior to consummation of the Change in Control.

Should any payments received by Mr. Hall upon a Change In Control constitute a “parachute payment” within the meaning of Code Section 280G, Mr. Hall may elect to receive either the full amount of his Change In Control payments, or such lesser amount as will ensure that no portion of his severance and other benefits will be subject to excise tax under Code Section 4999 of the Code. Additionally, certain payments may be delayed for six months following termination under Code Section 409A.

The CEO Agreement utilizes the 2014 Plan definition of “Change In Control” which currently provides that a Change In Control will occur when (i) there is a change in ownership of the Company such that any person (or group) becomes the beneficial owner of 50% of our voting securities, (ii) there is a change in the ownership of a substantial portion of the Company’s assets or (iii) there is a change in the effective control of the Company such that a majority of members of the Board is replaced during any 12 month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of appointment or election.

In the CEO Agreement, Mr. Hall also agrees not to engage in any competitive activities and not to solicit Gartner employees for 36 months following termination of employment.

## Termination and Related Payments – Other Executive Officers

In the event of termination for cause, voluntary resignation or as a result of death, disability or retirement, no severance benefits are provided. In the event of termination for cause or voluntary resignation, all equity awards are forfeited except as discussed below under Death, Disability and Retirement. In the event of termination without cause (including in connection with a Change In Control), other executive officers are entitled to receive the following benefits:

<table><tr><td>Component</td><td>Description</td></tr><tr><td>Base Salary</td><td>➢ accrued base salary and unused PTO (not to exceed 25 days) through termination
➢ 12 months continued base salary paid pursuant to normal payroll schedule</td></tr><tr><td>Long-Term Incentive Awards</td><td>➢ If terminated within 12 months of a Change in Control, all unvested outstanding equity will vest in full (upon adjustment if performance adjustment has not occurred on termination), and all stock options and SARs will be exercisable as to all covered shares for 12 months following termination; otherwise unvested awards are forfeited
➢ If no Change in Control, unvested equity awards are forfeited (except in the case of death, disability and retirement, discussed below)</td></tr><tr><td>Other</td><td>➢ Reimbursement for up to 12 months&#x27; COBRA premiums for executive and family</td></tr></table>

In order to receive severance benefits, the executive officers who are terminated are required to execute and comply with a separation agreement and release of claims in which, among other things, the executive reaffirms his or her commitment to confidentiality and non-competition obligations (that bind all employees for one year following termination of employment) and releases the Company from various employment-related claims. In addition, in the case of NEOs (other than Mr. Hall), severance will not be paid to any executive who refuses to accept an offer of comparable employment from Gartner or who does not cooperate or ceases to cooperate when being considered for a new position with Gartner, in each case as determined by the Company. Finally, under certain circumstances, payments and release of shares may be delayed for six months following termination under Code Section 409A.

## Death, Disability and Retirement

For all equity awards made prior to 2015, in the case of termination due to death, disability or retirement (as defined), our executive officers are entitled to immediate vesting of all PSUs and SARs that would have vested (assuming continued service) during the 12 months following termination. Commencing with the 2015 equity awards, our executive officers are entitled to immediate vesting of all outstanding awards in the case of termination due to death or disability,



and continued vesting depending upon the age of the officer in the case of retirement (as defined) as described in the following table:

<table><tr><td>Termination Event</td><td>Treatment of Unvested Equity Awards</td></tr><tr><td>Death or Disability - pre 2015 awards</td><td>➢ 12 months additional vesting upon event</td></tr><tr><td>Death or Disability - 2015 et seq. awards</td><td>➢ 100% vesting upon event</td></tr><tr><td>Retirement - not eligible</td><td>➢ Unvested awards forfeited</td></tr><tr><td>Retirement - pre 2015 awards - eligible</td><td>➢ 12 months additional vesting upon event</td></tr><tr><td>Retirement - 2015 et seq. awards - eligible</td><td>➢ If &lt; 60 years of age, 12 months continued vesting➢ If 60, 24 months continued vesting➢ If 61, 36 months continued vesting➢ If 62 or more, unvested awards vest in full in accordance with its term</td></tr></table>

In order to receive retirement vesting, an officer must be retirement “eligible” on the date of retirement; if not, all unvested awards are forfeited upon retirement. Retirement eligibility is defined in our current equity award agreements as follows: (i) on the date of retirement the officer must be at least 55 years old and have at least 5 years continued service and (ii) the sum of the officer’s age and years of continued service must be 65 or greater. At December 31, 2017, of our NEOs, only Mr. Hall qualified for the additional vesting benefit upon retirement. Disability is defined in our current equity award agreements as total and permanent disability.

For all SAR awards prior to 2015, the SARs remain exercisable for the earlier of the applicable expiration date or one year from termination in the case of death, disability or retirement. Commencing with the 2015 SAR awards, the SARs remain exercisable for the earlier of the applicable expiration date or one year from termination in the case of death and disability, and through the expiration date in the case of retirement. In each case, upon termination for any other reason, vested SARs remain exercisable for the earlier of the applicable expiration date or 90 days from the date of termination. In the case of death, disability or retirement, unvested and unadjusted PSUs to which the officer is entitled will be adjusted based upon achievement of the related performance metric upon certification by the Compensation Committee. In all cases related to retirement, the officer must be retirement eligible.

## Potential Payments Upon Termination or Change in Control

Employment Agreements With Executive Officers above contains a detailed discussion of the payments and other benefits to which our CEO and other NEOs are entitled in the event of termination of employment or upon a Change In Control, and the amounts payable assuming termination under various circumstances at December 31, 2017 are set forth below. In each case, each NEO would also be entitled to receive accrued personal time off (PTO) and the balance in his deferred compensation plan account.

## Mr. Hall, CEO

The table below quantifies (in dollars) amounts that would be payable by the Company, and the value of shares of Common Stock that would be released, to Mr. Hall had his employment been terminated on December 31, 2017 (the “Termination Date”) as a result of (i) involuntary termination without cause and/or constructive termination; (ii) death, disability or retirement; or (iii) a Change In Control. See Outstanding Equity Awards At Fiscal Year End Table below



for a list of Mr. Hall’s unvested equity awards at the end of 2017. Mr. Hall was eligible for retirement benefits at December 31, 2017.

<table><tr><td>Involuntary termination (severance benefits) (1)</td><td>Involuntary termination (continued vesting of equity awards) (2)</td><td>Total Involuntary termination (1), (2)</td><td>Death or disability (value of unvested equity awards) (3)</td><td>Retirement (value of unvested equity awards) (4)</td><td>Change in Control (severance benefits) (5)</td><td>Change in Control (acceleration of unvested equity awards) (6)</td><td>Total Change in Control (5), (6)</td></tr><tr><td>7,909,395</td><td>43,668,715</td><td>51,578,111</td><td>48,067,959</td><td>43,668,715</td><td>7,077,900</td><td>41,794,206</td><td>48,872,106</td></tr></table>

(1) Represents the sum of (w) three times base salary in effect at Termination Date; (x) 300% of the average actual bonus paid for the prior three years (2014, 2015 and 2016); (y) unpaid 2017 bonus; and (z) the amount of health insurance premiums for Mr. Hall, his spouse and immediate family for 36 months (at rate in effect on the Termination Date).

(2) Represents (x) the fair market value using the closing price of our Common Stock on December 29, 2017 (the last NYSE trading in 2017), or $123.15 (the “Year End Price”) of unvested PSUs that would have vested within 36 months following the Termination Date, plus (y) the spread between the Year End Price and the exercise price for all in-the-money SARs that would have vested within 36 months following the Termination Date, multiplied by the number of such SARs. 2017 PSUs are adjusted based upon the performance factor determined by the Compensation Committee in early 2018.

(3) Represents (x) the fair market value using the Year End Price of (i) unvested PSUs awarded prior to 2015 that would have vested within 12 months following the Termination Date and (ii) all unvested PSUs awarded in 2015, 2016 and 2017, plus (y) the spread between the Year End Price and the exercise price for all (i) in-the-money SARs awarded prior to 2015 that would have vested within 12 months following the Termination Date and (ii) 100% of all in-the-money, unvested SARs awarded in 2015, 2016 and 2017, multiplied by the number of such SARs. 2017 PSUs are adjusted based upon the performance factor determined by the Compensation Committee in early 2018.

(4) Represents (x) the fair market value using the Year End Price of (i) unvested PSUs awarded prior to 2015 that would have vested within 12 months following the Termination Date and (ii) all unvested PSUs awarded in 2015, 2016 and 2017 that would have vested within 36 months following the Termination Date, plus (y) the spread between the Year End Price and the exercise price for all (i) in-the-money SARs awarded prior to 2015 that would have vested within 12 months following the Termination Date and (ii) all in-the-money, unvested SARs awarded in 2015, 2016 and 2017 that would have vested within 36 months following the Termination Date, multiplied by the number of such SARs. 2017 PSUs are adjusted based upon the performance factor determined by the Compensation Committee in early 2018.

(5) Represents the sum of (w) three times base salary in effect at Termination Date, (x) three times 2017 target bonus, (y) unpaid 2017 bonus, and (z) the amount of health insurance premiums for Mr. Hall, his spouse and immediate family for 36 months (at premiums in effect on the Termination Date).

(6) Represents (x) the fair market value using the Year End Price of all unvested PSUs on the Termination Date (at target in the case of unadjusted 2017 PSUs), plus (y) the spread between the Year End Price and the exercise price of all in-the-money unvested SARs on the Termination Date, multiplied by the number of such SARs.

## Other Named Executive Officers

The table below quantifies (in dollars) amounts that would be payable by the Company, and the value of shares of Common Stock that would be released, to our NEOs (other than Messrs. Hall and Waern) had their employment been terminated on December 31, 2017 (the “Termination Date”) as a result of (i) involuntary termination without cause



and/or constructive termination; (ii) death or disability; or (iii) a Change In Control. None of these NEOs were eligible for retirement benefits at December 31, 2017. See Outstanding Equity Awards At Fiscal Year End Table below for a list of unvested equity awards held by each NEO at the end of 2017.

<table><tr><td>Named Executive Officer</td><td>Involuntary termination (severance benefits) (1)</td><td>Value of unvested equity awards (death, disability or retirement) (2)</td><td>Value of unvested equity awards (Change In Control) (3)</td><td>Total Change In Control (1), (3)</td></tr><tr><td>Craig W. Safian</td><td>1,188,499</td><td>8,101,108</td><td>6,876,135</td><td>8,064,634</td></tr><tr><td>Alwyn Dawkins</td><td>1,007,628</td><td>7,218,931</td><td>6,259,099</td><td>7,266,727</td></tr><tr><td>David McVeigh</td><td>1,013,849</td><td>5,298,238</td><td>4,338,407</td><td>5,352,256</td></tr><tr><td>Peter Sondergaard</td><td>1,007,628</td><td>7,218,931</td><td>6,259,099</td><td>7,266,727</td></tr></table>

(1) Represents 12 months’ base salary in effect on the Termination Date plus the amount of health insurance premiums for the executive, his spouse and immediate family for 12 months (at premiums in effect on the Termination Date) payable in accordance with normal payroll practices. Also includes 2017 bonus that was certified for payment by the Compensation Committee prior to yearend.

(2) Represents (x) the fair market value using the Year End Price ($123.15) of (i) unvested PSUs awarded prior to 2015 that would have vested within 12 months following the Termination Date, and (ii) 100% of unvested PSUs awarded in 2015, 2016 and 2017, plus (y) the spread between the Year End Price and the exercise price of (i) all in-the-money SARs awarded prior to 2015 that would have vested within 12 months following the Termination Date, and (ii) 100% of all in-the money unvested SARs awarded in 2015, 2016 and 2017, multiplied by the number of such SARs, in the event of death or disability, plus (z) the fair market value using the Year End Price of (i) unvested RSUs awarded prior to 2015 that would have vested within 12 months following the Termination Date, and (ii) 100% of unvested RSUs awarded in 2015, 2016 and 2017. PSUs are adjusted based upon applicable performance metrics. Messrs. Safian, Dawkins, McVeigh and Sondergaard were not eligible for retirement benefits on December 31, 2017 and would have forfeited all unvested equity had they retired on the Termination Date.

(3) Represents (x) the fair market value using the Year End Price of all unvested PSUs and RSUs on the Termination Date (at target in the case of unadjusted 2017 PSUs), plus (y) the spread between the Year End Price and the exercise price of all in-the-money unvested SARs on the Termination Date, multiplied by the number of such SARs.

For Mr. Waern, pursuant to his separation agreement, he received on his separation date: (i) a severance payment of $464,944, representing 52 weeks of his base salary; (ii) a 2017 bonus payment at target of $348,708; (iii) a payment of $50,000 for relocation expenses; (iv) tax preparation assistance of $30,000; (v) other tax and other cash payment consideration of $85,000; (vi) vesting of equity awards with a total value of $2,600,010 (based on the closing price of our Common Stock on the applicable vesting date); and (vii) $44,704 for his accrued but unused vacation days.



## Outstanding Equity Awards at Fiscal Year-End Table

This table provides information on each option (including SARs) and stock (including RSUs and PSUs) award held by each NEO at December 31, 2017. All performance criteria associated with these awards (except for the 2017 PSU award (see footnote 4)) were fully satisfied as of December 31, 2017, and the award is fixed. The market value of the stock awards is based on the closing price of our Common Stock on the New York Stock Exchange on December 29, 2017 (the last business day of the year), which was $123.15. Upon exercise of, or release of restrictions on, these awards, the number of shares ultimately issued to each executive will be reduced by the number of shares withheld by Gartner for tax withholding purposes and/or as payment of the exercise price in the case of options and SARs.

<table><tr><td rowspan="2"></td><td colspan="5">Option Awards</td><td colspan="5">Stock Awards</td></tr><tr><td>Number of Securities Underlying Unexercised Options Exercisable (#)</td><td>Number of Securities Underlying Unexercisable (#)</td><td>Option Exercise Price ($)</td><td>Option Expiration Date</td><td>Number of Shares or Units of Stock That Have Not Vested (#)</td><td>Market Value of Shares or Units of Stock That Have Not Vested ($)</td><td>Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)</td><td>Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units, or Other Rights That Have Not Vested ($)</td><td></td><td></td></tr><tr><td>Name Executive Officer</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Eugene A. Hall</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>(1), (5)</td><td>101,236</td><td>33,745</td><td>64.64</td><td>2/10/21</td><td>31,515</td><td>3,881,072</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(2), (5)</td><td>63,376</td><td>63,374</td><td>77.92</td><td>2/9/22</td><td>53,252</td><td>6,557,984</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(3), (5)</td><td>36,426</td><td>109,277</td><td>80.06</td><td>2/8/23</td><td>85,119</td><td>10,482,405</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(4), (5)</td><td>-</td><td>114,600</td><td>99.07</td><td>2/6/24</td><td>-</td><td>-</td><td>118,890</td><td>14,641,304</td><td></td><td></td><td></td></tr><tr><td>(8)</td><td></td><td></td><td></td><td></td><td>10,093</td><td>1,242,953</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Craig W. Safian</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>(1)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,740</td><td>214,281</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(2), (5)</td><td>10,286</td><td>10,284</td><td>77.92</td><td>2/9/22</td><td>8,641</td><td>1,064,139</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(3), (5)</td><td>6,495</td><td>19,482</td><td>80.06</td><td>2/8/23</td><td>15,174</td><td>1,868,678</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(4), (5)</td><td>-</td><td>22,378</td><td>99.07</td><td>2/6/24</td><td>-</td><td>-</td><td>23,214</td><td>2,858,804</td><td></td><td></td><td></td></tr><tr><td>(6)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,783</td><td>219,576</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(7)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,921</td><td>236,571</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>Alwyn Dawkins</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>(5)</td><td>18,905</td><td>-</td><td>49.37</td><td>2/12/20</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(1), (5)</td><td>15,060</td><td>5,020</td><td>64.64</td><td>2/10/21</td><td>4,688</td><td>577,327</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(2), (5)</td><td>9,428</td><td>9,427</td><td>77.92</td><td>2/9/22</td><td>7,922</td><td>975,594</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(3), (5)</td><td>5,419</td><td>16,256</td><td>80.06</td><td>2/8/23</td><td>12,662</td><td>1,559,325</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(4), (5)</td><td>-</td><td>17,535</td><td>99.07</td><td>2/6/24</td><td>-</td><td>-</td><td>18,190</td><td>2,240,099</td><td></td><td></td><td></td></tr><tr><td>(7)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,494</td><td>183,986</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>David McVeigh</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>(9)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>2,861</td><td>352,332</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(3), (5)</td><td>5,419</td><td>16,256</td><td>80.06</td><td>2/8/23</td><td>12,662</td><td>1,559,325</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(4), (5)</td><td>-</td><td>17,535</td><td>99.07</td><td>2/6/24</td><td>-</td><td>-</td><td>18,190</td><td>2,240,099</td><td></td><td></td><td></td></tr><tr><td>(7)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,494</td><td>183,986</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>Peter Sondergaard</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>(5)</td><td>20,239</td><td>-</td><td>37.81</td><td>2/09/19</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(5)</td><td>18,905</td><td>-</td><td>49.37</td><td>2/12/20</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(1), (5)</td><td>15,060</td><td>5,020</td><td>64.64</td><td>2/10/21</td><td>4,688</td><td>577,327</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(2), (5)</td><td>9,428</td><td>9,427</td><td>77.92</td><td>2/9/22</td><td>7,922</td><td>975,594</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(3), (5)</td><td>5,419</td><td>16,256</td><td>80.06</td><td>2/8/23</td><td>12,662</td><td>1,559,325</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>(4), (5)</td><td>-</td><td>17,535</td><td>99.07</td><td>2/6/24</td><td>-</td><td>-</td><td>18,190</td><td>2,240,099</td><td></td><td></td><td></td></tr><tr><td>(7)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1,494</td><td>183,986</td><td>-</td><td>-</td><td>-</td><td></td><td></td></tr><tr><td>Per Anders Waern (10)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td></td><td></td><td></td><td></td></tr></table>



(1) Vest 25% per year commencing 2/10/15.

(2) Vest 25% per year commencing 2/9/16.

(3) Vest 25% per year commencing 2/8/17.

(4) Vests 25% per year commencing 2/6/18. The market value of the Stock Award is presented at maximum level (200%), and the amount ultimately awarded could range from 0% to 200% of the target award. After certification of the applicable performance metric in February 2018, the amount actually awarded on account of Stock Awards was adjusted to 185.7% of target. The actual number of PSUs awarded to the NEOs is reported in footnote (2) to the Grants of Plan – Based Awards Table.

(5) The amounts shown under Option Awards represent SARs that will be stock-settled upon exercise; accordingly, the number of shares ultimately received upon exercise will be less than the number of SARs held by the executive and reported in this table.

(6) Vest 25% per year commencing 6/13/15.

(7) Vest 25% per year commencing 8/10/18.

(8) Vest 25% per year commencing 2/6/18. No adjustment factor applied to Mr. Hall’s special acquisition award.

(9) Vest 25% per year commencing 9/15/16.

(10) Mr. Waern did not hold any option or stock award at December 31, 2017.

## Option Exercises and Stock Vested Table

This table provides information for the NEOs for the aggregate number of SARs that were exercised, and stock awards that vested and released, during 2017 on an aggregate basis, and does not reflect shares withheld by the Company for exercise price or withholding taxes.

<table><tr><td rowspan="2">Name</td><td colspan="2">Option Awards</td><td colspan="2">Stock Awards</td></tr><tr><td>Number of Shares Acquired on Exercise (#)</td><td>Value Realized on Exercise ($) (1)</td><td>Number of Shares Acquired on Vesting (#) (2)</td><td>Value Realized on Vesting ($) (3)</td></tr><tr><td>Eugene A. Hall</td><td>130,749</td><td>8,957,614</td><td>113,433</td><td>11,377,463</td></tr><tr><td>Craig W. Safian</td><td>N/A</td><td>N/A</td><td>14,928</td><td>1,529,022</td></tr><tr><td>Alwyn Dawkins</td><td>20,239</td><td>1,287,403</td><td>16,762</td><td>1,681,167</td></tr><tr><td>David McVeigh</td><td>N/A</td><td>N/A</td><td>5,652</td><td>590,769</td></tr><tr><td>Peter Sondergaard</td><td>18,794</td><td>1,490,176</td><td>16,762</td><td>1,681,167</td></tr><tr><td>Per Anders Waern</td><td>39,416</td><td>1,500,032</td><td>31,906</td><td>3,497,690</td></tr></table>

(1) Represents the spread between (i) the market price of our Common Stock at exercise and (ii) the exercise price for all SARs exercised during the year, multiplied by the number of SARs exercised.

(2) Represents PSUs and RSUs awarded in prior years as long-term incentive compensation that released in 2017.

(3) Represents the number of shares that released multiplied by the market price of our Common Stock on the release date.

## Non-Qualified Deferred Compensation Table

The Company maintains a Non-Qualified Deferred Compensation Plan for certain officers and key personnel whose aggregate compensation in 2017 was expected to exceed $325,000. This plan currently allows qualified U.S.-based employees to defer up to 50% of annual salary and/or up to 100% of annual bonus earned in a fiscal year. In addition, in 2017 the Company made a contribution to the account of each Named Executive Officer who deferred compensation equal to the amount of such executive’s contribution (not to exceed 4% of base salary and bonus), less $7,200. Deferred amounts are deemed invested in several independently-managed investment portfolios selected by the participant for purposes of determining the amount of earnings to be credited by the Company to that participant’s account. The Company may, but need not, acquire investments corresponding to the participants’ designations.



Upon termination of employment for any reason, all account balances will be distributed to the participant in a lump sum, except that a participant whose account balance is in excess of $25,000 may defer distributions for an additional year, and/or elect to receive the balance in 20, 40 or 60 quarterly instalments. In the event of an unforeseen emergency (which includes a sudden and unexpected illness or accident of the participant or a dependent, a loss of the participant's property due to casualty or other extraordinary and unforeseeable circumstance beyond the participant's control), the participant may request early payment of his or her account balance, subject to approval.

The following table provides information (in dollars) concerning contributions to the Deferred Compensation Plan in 2017 by the participating Named Executive Officers, the Company’s matching contributions, 2017 earnings, aggregate withdrawals and distributions and account balances at year end \( ^{(1)} \) :

<table><tr><td>Name</td><td>Executive Contributions in 2017 (2)</td><td>Company Contributions in 2017 (3)</td><td>Aggregate Earnings (loss) in 2017</td><td>Aggregate Withdrawals/ Distributions in 2017</td><td>Aggregate Balance at 12/31/17 (4)</td></tr><tr><td>Eugene A. Hall</td><td>84,466</td><td>77,293</td><td>119,962</td><td>(147,532)</td><td>740,516</td></tr><tr><td>Craig W. Safian</td><td>45,260</td><td>32,655</td><td>19,951</td><td>-</td><td>200,370</td></tr><tr><td>Alwyn Dawkins</td><td>39,877</td><td>27,221</td><td>27,848</td><td>(154,727)</td><td>198,240</td></tr><tr><td>David McVeigh</td><td>34,414</td><td>27,221</td><td>7,913</td><td>-</td><td>98,309</td></tr><tr><td>Peter Sondergaard</td><td>34,414</td><td>27,221</td><td>41,547</td><td>-</td><td>572,943</td></tr><tr><td>Per Anders Waern</td><td>32,863</td><td>8,751</td><td>89,193</td><td>-</td><td>603,455</td></tr></table>

(1) Contribution amounts in this table have been reflected in the Summary Compensation Table and prior years' summary compensation tables, as applicable. Aggregate earnings are not reflected in the Summary Compensation Table and were not reflected in prior years' summary compensation tables.

(2) Executive Contributions are included in the “Base Salary” and/or “Non-Equity Incentive Plan Compensation” columns in the Summary Compensation Table for the NEOs.

(3) Company Contributions are included in the “All Other Compensation” column of the Summary Compensation Table, and in the “Company Match Under Non-qualified Deferred Compensation Plan” column of the Other Compensation Table for the NEOs.

(4) Amounts reported in the Aggregate Balance column reflect the cumulative value of the NEOs' deferral activities, including executive contributions, company contributions, withdrawals and investment earnings thereon as of December 31, 2017.

## Pay Ratio

The 2017 annual total compensation of the median compensated of all our employees who were employed as of December 31, 2017, other than our CEO, Mr. Hall, was $126,646; Mr. Hall’s 2017 annual total compensation was $11,874,230 and the ratio of these amounts was 1-to-94.

The SEC’s rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their employee populations and compensation practices. As a result, the pay ratio reported by other companies may not be comparable to the pay ratio reported above, as other companies have different employee populations and compensation practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios.

The pay ratio reported above is a reasonable estimate calculated in a manner consistent with SEC rules based on our payroll and employment records, and the methodology described below. For these purposes, we identified the median compensated employee using the base salary determined as of December 31, 2017 and target cash incentives for the 2017 performance year, which amounts were annualized for any employee who did not work for the entire year. Our employee population consisted of all worldwide associates of heritage Gartner (i.e., we excluded 4,617 CEB associates since 2017 was the year of the acquisition). Based on our consistently applied compensation measure, we identified a group of 10 associates within 0.2% of the median amount and calculated annual total compensation in accordance with Summary Compensation Table requirements for these associates to identify our median compensated employee.



## EQUITY COMPENSATION PLAN INFORMATION

The following table provides information as of December 31, 2017 regarding the number of shares of our Common Stock that may be issued upon exercise of outstanding options, stock appreciation rights and other rights (including restricted stock units, performance stock units and common stock equivalents) awarded under our equity compensation plans (and, where applicable, related weighted-average exercise price information), as well as shares available for future issuance under our equity compensation plans. All equity plans with outstanding awards or available shares have been approved by our stockholders.

<table><tr><td></td><td>Column A</td><td>Column B</td><td>Column C</td></tr><tr><td>Plan Category (1)</td><td>Number of Securities to be Issued Upon Exercise of Outstanding Options and Rights (2)</td><td>Weighted Average Exercise Price of Outstanding Options and Rights (\() (2)</td><td>Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans (excluding shares in Column A)</td></tr><tr><td>2003 Long - Term Incentive Plan</td><td>596,207</td><td>58.33</td><td>-</td></tr><tr><td>2014 Long - Term Incentive Plan</td><td>2,304,622</td><td>85.40</td><td>6,209,275</td></tr><tr><td>2011 Employee Stock Purchase Plan</td><td>-</td><td>-</td><td>800,698</td></tr><tr><td>Total (3)</td><td>2,900,829</td><td>76.76</td><td>7,009,973</td></tr></table>

(1) All the plans set forth in this table were approved by shareholders.

(2) Column A includes 1,183,998 SARs, 1,607,817 PSUs and RSUs, and 109,014 CSEs. Because there is no exercise price associated with PSUs, RSUs or CSEs, these stock awards are not included in the weighted-average exercise price calculation presented in column B.

(3) In addition, the Company has outstanding equity compensation awards that the Company assumed in the acquisition of CEB. These awards were granted by CEB under its 2012 Stock Incentive Plan (the “CEB Plan”) in the period between 2012 to the closing of the acquisition by the Company and were converted into an adjusted number of Company shares. As of December 31, 2017, there were a total of 386,083 Company shares subject to assumed CEB restricted stock units. No additional restricted stock units, options or other awards have been granted under the CEB Plan since the closing of the acquisition and no new awards will be granted in the future under that plan.



# PROPOSAL TWO:

# APPROVAL, ON AN ADVISORY BASIS, OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS

In accordance with the requirements of Section 14A of the Exchange Act (which was added by the Dodd-Frank Act) and the related rules of the SEC, we are including in this Proxy Statement a separate resolution subject to stockholder vote to approve the compensation of our NEOs. The stockholder vote on this resolution is advisory only. However, the Compensation Committee and the Board will consider the voting results when making future executive compensation decisions.

The text of the resolution in respect of Proposal No. 2 is as follows:

Resolved, that the compensation of Gartner’s Named Executive Officers as disclosed in this Proxy Statement pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion, is hereby approved.

In considering your vote, stockholders may wish to review with care the information on Gartner’s compensation policies and decisions regarding the NEOs presented in the CD&A on pages 17–30, including, in particular, the information concerning Company performance included in the Executive Summary on pages 17–19 and highlights of our Compensation Practices on pages 19–20.

In particular, stockholders should note that the Compensation Committee bases its executive compensation decisions on the following:

<table><tr><td>➢</td><td>the need to attract, motivate and retain highly talented, creative and entrepreneurial individuals in a highly competitive industry and market places;</td></tr><tr><td>➢</td><td>the need to motivate our executives to maximize the performance of our Company through pay-for-performance compensation components which have led executives to deliver outstanding performance for the past several years;</td></tr><tr><td>➢</td><td>comparability to the practices of peers in our industry and other comparable companies generally based upon available benchmarking data; and</td></tr><tr><td>➢</td><td>the alignment of our executive compensation programs with stockholder value through heavily weighted performance-based compensation elements.</td></tr></table>

As noted in the Executive Summary on commencing on page 17, 2017 was another year of record achievement for Gartner, largely as a result of the achievements, focus and skill of our executive leadership team. The Board believes that Gartner’s executive compensation program has a proven record of effectively driving superior levels of financial performance, stockholder value, alignment of pay with performance, high ethical standards and attraction and retention of highly talented executives.

## RECOMMENDATION OF OUR BOARD

Our Board unanimously recommends that you vote FOR the foregoing resolution to approve, on an advisory basis, the compensation of our Named Executive Officers as disclosed in this Proxy Statement.



## SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Based on our review of information on file with the SEC and our stock records, the following table provides certain information about beneficial ownership of shares of our Common Stock as of March 30, 2018 (including shares that will release or are or will become exercisable within 60 days following March 30, 2018) held by: (i) each person (or group of affiliated persons) which is known by us to own beneficially more than five percent (5%) of our Common Stock; (ii) each of our directors; (iii) each NEO; and (iv) all directors, NEOs and other current executive officers as a group. Percentage computations are based on 91,040,171 shares of Common Stock outstanding on March 30, 2018. Unless otherwise indicated, the address for those listed below is c/o Gartner, Inc., 56 Top Gallant Road, Stamford, CT 06904. The amounts shown do not include CSEs that release upon termination of service as a director, or deferred RSUs that will not release within 60 days. Since all stock appreciation rights (SARs) are stock-settled (i.e., shares are withheld for the payment of exercise price and taxes), the number of shares ultimately issued upon settlement will be less than the number of SARs exercised. Except as indicated by footnote, and subject to applicable community property laws, the persons named in the table directly own, and have sole voting and investment power with respect to, all shares of Common Stock shown as beneficially owned by them. To the Company’s knowledge, none of these shares has been pledged.

<table><tr><td>Beneficial Owner</td><td>Number of Shares Beneficially Owned</td><td>Percent Owned</td></tr><tr><td>Michael J. Bingle</td><td>28,365</td><td>*</td></tr><tr><td>Peter E. Bisson</td><td>1,743</td><td>*</td></tr><tr><td>Richard J. Bressler</td><td>20,972</td><td>*</td></tr><tr><td>Raul E. Cesan (1)</td><td>94,692</td><td>*</td></tr><tr><td>Karen E. Dykstra (2)</td><td>21,035</td><td>*</td></tr><tr><td>Anne Sutherland Fuchs</td><td>25,081</td><td>*</td></tr><tr><td>William O. Grabe</td><td>130,938</td><td>*</td></tr><tr><td>Stephen G. Pagliuca</td><td>55,897</td><td>*</td></tr><tr><td>Eileen Serra</td><td>-</td><td>-</td></tr><tr><td>James C. Smith (3)</td><td>1,058,044</td><td>1.2</td></tr><tr><td>Eugene A. Hall (4)</td><td>1,505,381</td><td>1.6</td></tr><tr><td>Craig W. Safian (5)</td><td>62,729</td><td>*</td></tr><tr><td>Alwyn Dawkins (6)</td><td>100,482</td><td>*</td></tr><tr><td>David McVeigh (7)</td><td>25,190</td><td>*</td></tr><tr><td>Peter Sondergaard (8)</td><td>193,733</td><td>*</td></tr><tr><td>Per Anders Waern</td><td>-</td><td>-</td></tr><tr><td>All current directors, NEOs and other executive officers as a group (23 persons) (9)</td><td>3,664,867</td><td>4.0</td></tr><tr><td>Baron Capital Group, Inc. (10)</td><td>7,047,510</td><td>7.7</td></tr><tr><td>767 Fifth Avenue, New York, NY 10153</td><td></td><td></td></tr><tr><td>Blackrock, Inc. (11)</td><td>6,750,760</td><td>7.4</td></tr><tr><td>40 East 52nd Street, New York, NY 10022</td><td></td><td></td></tr><tr><td>The Vanguard Group, Inc. (12)</td><td>8,936,384</td><td>9.8</td></tr><tr><td>100 Vanguard Blvd., Malvern, PA 19355</td><td></td><td></td></tr><tr><td>Janus Henderson Group plc (13)</td><td>4,999,954</td><td>5.5</td></tr><tr><td>201 Bishopgate, London X0 EC2M 3AE, United Kingdom</td><td></td><td></td></tr><tr><td>Select Equity Group, L.P. (14)</td><td>4,749,227</td><td>5.2</td></tr><tr><td>380 Lafayette Street, 6th floor, New York, NY 10003</td><td></td><td></td></tr></table>



 \( ^{*} \)  Less than 1%

(1) Includes 30,000 shares held by a family foundation as to which Mr. Cesan may be deemed a beneficial owner.

(2) Includes 2,812 RSU shares that will release within 60 days.

(3) Includes 50,000 shares held by members of Mr. Smith’s immediate family and 211,900 shares held by a family foundation as to which Mr. Smith may be deemed a beneficial owner.

(4) Includes 331,546 vested and exercisable stock appreciation rights (“SARs”).

(5) Includes 34,012 vested and exercisable SARs.

(6) Includes 68,349 vested and exercisable SARs.

(7) Includes 15,222 vested and exercisable SARs.

(8) Includes 88,588 vested and exercisable SARs.

(9) Includes 2,357 RSUs shares that will release within 60 days, and 732,003 vested and exercisable SARs.

(10) Beneficial ownership information is based on a Schedule 13G/A filed by Baron Capital Group, Inc., BAMCO, Inc., a subsidiary of Baron Capital Group, Inc., Baron Capital Management, Inc., a subsidiary of Baron Capital Group, Inc., and Ronald Baron, who owns a controlling interest in Baron Capital Group, Inc., with the SEC on February 14, 2018. Baron Capital Group, Inc. has shared voting power of 6,751,210 shares and shared dispositive power of 7,047,510 shares. BAMCO, Inc. has shared voting power of 6,539,490 shares and shared dispositive power of 6,835,790 shares. Baron Capital Management, Inc. has shared voting power and shared dispositive power of 211,720 shares. Mr. Baron has shared voting power of 6,751,210 shares and shared dispositive power of 7,047,510 shares.

(11) Beneficial ownership information is based on a Schedule 13G/A filed by BlackRock, Inc. with the SEC on February 8, 2018. BlackRock, Inc. has sole voting power over 5,954,592 shares and sole investment power over 6,750,760 shares.

(12) Beneficial ownership information is based on a Schedule 13G/A filed by The Vanguard Group with the SEC on February 9, 2018. The Vanguard Group has sole voting power over 131,840 shares and has sole investment power over 8,778,664 shares. The Vanguard Group has shared voting power over 31,426 shares and shared investment power over 157,720 shares. Vanguard Fiduciary Trust Company (“VFTC”), a wholly-owned subsidiary of The Vanguard Group, is the beneficial owner of 100,655 shares as a result of VFTC serving as investment manager of collective trust accounts. Vanguard Investments Australia, Ltd. (“VIA”), a wholly-owned subsidiary of The Vanguard Group, is the beneficial owner of 87,811 shares as a result of VIA serving as investment manager of Australian investment offerings.

(13) Beneficial ownership information is based on a Schedule 13G filed by Janus Henderson Group plc with the SEC on February 12, 2018. Janus Henderson Group plc has shared voting power and shared investment power with respect to all of the shares.

(14) Beneficial ownership information is based on a Schedule 13G filed by Select Equity Group, L.P. (“Select”) and George S. Loening (“Loening”), who is the majority owner of Select and managing member of its general partner, with the SEC on February 14, 2018. Select and Loening have shared voting power and shared investment power with respect to all of the shares.

## SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires our executive officers, directors and persons who beneficially own more than 10% of our Common Stock to file reports of ownership and changes of ownership with the SEC and to furnish us with copies of the reports they file. To assist with this reporting obligation, the Company prepares and files ownership reports on behalf of its officers and directors pursuant to powers of attorney issued by the officer or director to the Company. Based solely on our review of these reports, or written representations from certain reporting persons, there were no late filings in 2017.



# TRANSACTIONS WITH RELATED PERSONS

Gartner provides products and services to over 12,000 organizations in over 100 countries. Because of our worldwide reach, it is not unusual for Gartner to engage in ordinary course of business transactions involving the sale of research or consulting services with entities in which one of our directors, executive officers or a greater than 5% owner of our stock, or immediate family member of any of them, may also be a director, executive officer, partner or investor, or have some other direct or indirect interest. We will refer to these transactions generally as related party transactions.

Our Governance Committee reviews all related party transactions to determine whether any director, executive officer or a greater than 5% owner of our stock, or immediate family member of any of them, has a material direct or indirect interest, or whether the independence from management of our directors may be compromised as a result of the relationship or transaction. Our Board Principles and Practices, which are posted on www.investor.gartner.com, require directors to disclose all actual or potential conflicts of interest regarding a matter being considered by the Board or any of its committees and to excuse themselves from that portion of the Board or committee meeting at which the matter is addressed to permit independent discussion. Additionally, the member with the conflict must abstain from voting on any such matter. The Governance Committee is charged with resolving any conflict of interest issues brought to its attention and has the power to request the Board to take appropriate action, up to and including requesting the involved director to resign. Our Audit Committee and/or Board of Directors reviews and approves all material related party transactions involving our directors in accordance with applicable provisions of Delaware law and with the advice of counsel, if deemed necessary.

The Company maintains a written conflicts of interest policy which is posted on our intranet and prohibits all Gartner employees, including our executive officers, from engaging in any personal, business or professional activity which conflicts with or appears to conflict with their employment responsibilities and from maintaining financial interests in entities that could create an appearance of impropriety in their dealings with the Company. Additionally, the policy prohibits all Gartner employees from entering into agreements on behalf of Gartner with any outside entity if the employee knows that the entity is a related party to a Gartner employee; i.e., that the contract would confer a financial benefit, either directly or indirectly, on a Gartner employee or his or her relatives. All potential conflicts of interest and related party transactions involving Gartner employees must be reported to, and pre-approved by, the General Counsel.

Since January 1, 2017, there were no related party transactions in which any director, executive officer or a greater than 5% owner of our stock, or immediate family member of any of them, had or will have a direct or indirect material interest.



# PROPOSAL THREE:

## RATIFICATION OF APPOINTMENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM

The Audit Committee of the Board of Directors has appointed KPMG LLP (“KPMG”) to serve as the Company’s independent registered public accounting firm for the 2018 fiscal year. Additional information concerning the Audit Committee and its activities with KPMG can be found in the Audit Committee Report and the Principal Accountant Fees and Services below.

The Audit Committee of the Board of Directors is directly responsible for the appointment, compensation and oversight of the Company’s independent registered public accounting firm. Ratification by the stockholders of the appointment of KPMG is not required by law, the Company’s bylaws or otherwise. However, the Board of Directors is submitting the appointment of KPMG for stockholder ratification to ascertain stockholders’ views on the matter. Representatives of KPMG will attend the Annual Meeting to respond to appropriate questions and to make a statement if they desire to do so.

## Principal Accountant Fees and Services

The following table presents fees for professional services rendered by KPMG for the integrated audit of the Company’s consolidated financial statements and internal control over financial reporting during the years ended December 31, 2017 and 2016, and fees for other services rendered by KPMG during those periods :

<table><tr><td>Types of Fees</td><td>2016 (\()</td><td>2017 (\))</td></tr><tr><td>Audit Fees</td><td>2,857,000</td><td>5,125,000</td></tr><tr><td>Audit-Related Fees</td><td>28,000</td><td>235,000</td></tr><tr><td>Tax Fees</td><td>545,000</td><td>836,000</td></tr><tr><td>All Other Fees</td><td>3,000</td><td>-</td></tr><tr><td>Total Fees</td><td>3,433,000</td><td>6,196,000</td></tr></table>

## Audit Fees

Audit fees relate to professional services rendered by KPMG for the audit of the Company’s annual consolidated financial statements contained in its Annual Report on Form 10-K, audit of internal control over financial reporting, and reviews of the Company’s quarterly financial information contained in its Quarterly Reports on Form 10-Q, as well as services normally provided by the independent registered public accounting firm in connection with statutory or regulatory filings or engagements and issuance of comfort letters.

## Audit-Related Fees

Audit-related fees relate to professional services rendered by KPMG principally for certain attestation services and consultations concerning financial accounting and reporting standards.

## Tax Fees

Tax fees relate to professional services rendered by KPMG for permissible tax compliance, tax advice and tax planning services.

## All Other Fees

This category of fees covers all fees for any permissible service not included in the above categories.

## Pre-Approval Policies

The Audit Committee’s policy is to pre-approve all audit, audit-related and permissible non-audit services provided by KPMG. These services may include domestic and international audit services, audit-related services, tax services and other services. At the beginning of each fiscal year, the Audit Committee pre-approves aggregate fee limits for specific



types of permissible services (e.g., domestic and international tax compliance and tax planning services; transfer pricing services, audit-related services and other permissible services) to allow management to engage KPMG expeditiously as needed as projects arise. At each regular quarterly meeting, KPMG and management report to the Audit Committee regarding the services for which the Company has engaged KPMG in the immediately preceding fiscal quarter in accordance with the pre-approved limits, and the related fees for such services as well as year-to-date cumulative fees for KPMG services. Pre-approved limits may be adjusted as necessary during the year, and the Audit Committee may also pre-approve particular services on a case-by-case basis. All services provided by KPMG in 2017 were pre-approved by the Audit Committee.

## AUDIT COMMITTEE REPORT

Pursuant to its responsibilities as set forth in the Audit Committee Charter, the Audit Committee has reviewed and discussed with management and with KPMG Gartner's audited consolidated financial statements for the year ended December 31, 2017. The Audit Committee has discussed with KPMG the matters required to be discussed under applicable Public Company Accounting Oversight Board (PCAOB) standards. The Audit Committee has received the written disclosures and letter from KPMG required by applicable requirements of the PCAOB regarding KPMG's communications with the Audit Committee concerning independence and has discussed with KPMG that firm's independence.

Based on the review and discussions noted above, as well as discussions regarding Gartner’s internal control over financial reporting and discussions with Gartner’s Internal Audit function, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements for the year ended December 31, 2017 be included in Gartner’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 for filing with the Securities and Exchange Commission.

Audit Committee of the Board of Directors

Richard J. Bressler

Karen E. Dykstra

James C. Smith

## RECOMMENDATION OF OUR BOARD

Our Board unanimously recommends that you vote FOR ratification of the appointment of KPMG LLP as the Company’s independent registered public accounting firm for fiscal 2018.



# MISCELLANEOUS

## Stockholder Communications

Stockholders and other interested parties may communicate with any of our directors by writing to them c/o Corporate Secretary, Gartner, Inc., 56 Top Gallant Road, P.O. 10212, Stamford, CT 06904-2212. All communications other than those which on their face are suspicious, inappropriate or illegible will be delivered to the director to whom they are addressed.

## Available Information

Our website address is www.gartner.com. The investor relations section of our website is located at www.investor.gartner.com and contains, under the “Corporate Governance” link, current electronic printable copies of our:

<table><tr><td>&gt;</td><td>CEO &amp; CFO Code of Ethics, which applies to our Chief Executive Officer, Chief Financial Officer, controller and other financial managers</td></tr><tr><td>&gt;</td><td>Global Code of Conduct, which applies to all Gartner officers, directors and employees</td></tr><tr><td>&gt;</td><td>Board Principles and Practices, the corporate governance principles that have been adopted by our Board</td></tr><tr><td>&gt;</td><td>Audit Committee Charter</td></tr><tr><td>&gt;</td><td>Compensation Committee Charter</td></tr><tr><td>&gt;</td><td>Governance/Nominating Committee Charter</td></tr></table>

This information is also available in print to any stockholder who makes a written request to Investor Relations, Gartner, Inc., 56 Top Gallant Road, P.O. Box 10212, Stamford, CT 06904-2212.

## Process for Submission of Stockholder Proposals for our 2019 Annual Meeting

The Company has adopted advance notice requirements related to stockholder business, including director nominations. These requirements are contained in our Bylaws, which can be found at www.investor.gartner.com, under the “Corporate Governance” link, and are summarized below. This summary is qualified by reference to the full Bylaw provision.

If you are a stockholder of record and you want to make a proposal for consideration at the 2019 Annual Meeting without having it included in our proxy materials, we must receive your written notice not less than 90 days prior to the 2019 Annual Meeting; provided, however, that if we fail to give at least 100 days prior notice of this meeting, then we must receive your written notice not more than 10 days after the date on which notice of the 2019 Annual Meeting is mailed.

A stockholder’s notice must set forth certain required information including: (i) a brief description of the business to be brought before the meeting and the reasons therefore; (ii) the name and address of the proposing stockholder and certain associated persons; (iii) the number of shares of Common Stock held by such stockholder and associated persons; (iv) a description of any hedging transactions entered into by such stockholder and persons; (v) any material interest of such stockholder and associated persons in the business to be conducted; and (vi) a statement as to whether a proxy statement and form of proxy will be delivered to other stockholders. In addition, certain information in the notice must be supplemented as of the record date for the meeting. If the stockholder business involves director nominations, the stockholder’s notice must also contain detailed information concerning the nominee, including name, age, principal occupation, interests in Common Stock, any other information regarding the nominee that would be required to be included in a proxy statement under the rules of the SEC had the proposal been made by management, and an acknowledgment by the nominee of the fiduciary duties owed by a director to a corporation and its stockholders under Delaware law. If you do not comply with all of the provisions of our advance notice requirements, then your proposal may not be brought before the 2019 Annual Meeting. All stockholder notices should be addressed to the Corporate Secretary, Gartner, Inc., 56 Top Gallant Road, P.O. Box 10212, Stamford, Connecticut 06904-2212.



Additionally, if you want to make a proposal for consideration at next year’s Annual Meeting and have it included in our proxy materials for that meeting, we must receive your proposal no later than December 11, 2018, and it must comply with the requirements of Exchange Act Rule 14a-8. All stockholder proposals submitted pursuant to Exchange Act Rule 14a-8 should be addressed to the Corporate Secretary, Gartner, Inc., 56 Top Gallant Road, P.O. Box 10212, Stamford, Connecticut 06904-2212.

## Annual Report

A copy of our Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 10-K") has been filed with the Securities and Exchange Commission and is available at www.sec.gov. You may also obtain a copy at www.investor.gartner.com. A copy of the 2017 10-K is also contained in our 2017 Annual Report to Stockholders, which accompanies this Proxy Statement. A copy of the 2017 10-K will be mailed to any stockholder who makes a written request to Investor Relations, Gartner, Inc., 56 Top Gallant Road, P.O. Box 10212, Stamford, CT 06904-2212.

## By Order of the Board of Directors



Jules Kaufman

Corporate Secretary

Stamford, Connecticut

April 10, 2018



2017
ANNUAL
REPORT

## Gartner \( ^{®} \)



# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

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)

Delaware

04-3099750

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

P.O. Box 10212

56 Top Gallant Road

Stamford, CT

06902-7700

(Address of principal executive offices)

(Zip Code)

(203) 316-1111

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

<table><tr><td>Title of each class</td><td>Name of each exchange on which registered</td></tr><tr><td>Common Stock, $0.0005 par value per share</td><td>New York Stock Exchange</td></tr></table>

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☑

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

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 as defined in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☑

Accelerated filer ☐

Non-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 June 30, 2017, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was $10,832,607,830, based on the closing sale price as reported on the New York Stock Exchange.

The number of shares outstanding of the registrant’s common stock was 90,833,817 as of January 31, 2018.

## DOCUMENTS INCORPORATED BY REFERENCE

Document

Proxy Statement for the Annual Meeting of Stockholders to be held (Proxy Statement)

Parts Into Which Incorporated

Part III



## GARTNER, INC.
2017 ANNUAL REPORT ON FORM 10-K
TABLE OF CONTENTS

PART I
ITEM 1. BUSINESS 4
ITEM 1A. RISK FACTORS 7
ITEM 1B. UNRESOLVED STAFF COMMENTS 15
ITEM 2. PROPERTIES 15
ITEM 3. LEGAL PROCEEDINGS 15
ITEM 4. MINE SAFETY DISCLOSURES (not applicable) 15
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 16
ITEM 6. SELECTED FINANCIAL DATA 17
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 18
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 37
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 38
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 38
ITEM 9A. CONTROLS AND PROCEDURES 39
ITEM 9B. OTHER INFORMATION 39
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 40
ITEM 11. EXECUTIVE COMPENSATION 40
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 40
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 40
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 40
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 41
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS 43
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 44
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 45
CONSOLIDATED BALANCE SHEETS 46
CONSOLIDATED STATEMENTS OF OPERATIONS 47
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 48
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) 49
CONSOLIDATED STATEMENTS OF CASH FLOWS 50
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 51
ITEM 16. 10-K SUMMARY 83
SIGNATURES 84



## PART I

## ITEM 1. BUSINESS.

## GENERAL

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 goals and build the successful organizations of tomorrow. We believe we have an unmatched combination of expert-led, practitioner-sourced and data-driven research that steers clients toward the right decisions on the issues that matter most. We’re trusted as an objective resource and critical partner by more than 12,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

Gartner delivers its products and services globally through four business segments: Research, Consulting, Events, and Talent Assessment & Other:

- Research provides trusted, objective insights and advice on the mission-critical priorities of leaders across all functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to our analysts, peer networking services and membership programs that enable our clients to make better decisions. Gartner's traditional strengths in IT, marketing and supply chain research were enhanced in 2017 with Gartner's acquisition of CEB, Inc. ("CEB"), which added CEB's best practice and talent management research insights across a range of business functions, to include human resources, sales, legal and finance.

- Consulting provides customized solutions to unique client needs through on-site, day-to-day support, as well as proprietary tools for measuring and improving IT performance with a focus on cost, performance, efficiency and quality.

- Events provides business professionals across the organization the opportunity to learn, share and network. From our flagship CIO event Gartner Symposium/ITxpo, to industry-leading conferences focused on specific business roles and topics, to member-driven sessions, our events enable attendees to experience the best of Gartner insight and advice live.

- Talent Assessment & Other helps organizations assess, engage, manage and improve talent. This is accomplished through knowledge and skills assessments, training programs, workshops, and survey and questionnaire services.

For more information regarding Gartner and our products and services, visit gartner.com. References to “the Company,” “we,” “our,” and “us” are to Gartner, Inc. and its consolidated subsidiaries. References to "heritage Gartner" operating results and business measurements refer to Gartner excluding CEB.

## MARKET OVERVIEW

We are living and working in the midst of a revolution. Technology increasingly drives organizational strategies rather than just supporting them, and three megaforces - technology-driven industry disruption, the growing pervasiveness of technology across every part of the enterprise, and sustained macroeconomic and political volatility (such as commodity price swings, exchange rate flux, Brexit) - are rapidly changing how businesses and other organizations plan and operate.

To remain viable and competitive, business leaders must deal with this unprecedented level of disruption and change. No enterprise can be operationally effective unless it incorporates the right technology into every part of its business. This means considering technology from many angles - how it affects all business levels, functions and roles. Chief Financial Officers, Heads of Human Resources, Chief Marketing Officers and other executives and leaders across the enterprise are more reliant on technology than ever. Given this critical need, business enterprises, governments and their agencies, and other organizations turn to Gartner for decision-making guidance to ensure they maximize their technology investments and meet their current and future needs.

Our legacy of expertise in IT has given way to a new position: Strategic research and advisory services operating across the entire organization. We believe our best-in-class Gartner content combined with CEB expertise in functional areas has strengthened our value proposition and increased our market opportunity to an all-time high.

## OUR SOLUTION

We believe our unmatched combination of expert-led, practitioner-sourced, data-driven research steers clients toward the right decisions on the issues that matter most. We employ a diversified business model that utilizes and leverages the breadth and depth of our intellectual capital. The foundation of our business model is our ability to create and distribute our proprietary research



content as broadly as possible via published reports, interactive tools, facilitated peer networking, briefings, consulting and advisory services, and our events, including the Gartner Symposium/ITxpo series.

We had over 1,900 research analysts as of December 31, 2017 located around the world who create compelling, relevant, independent and objective research and fact-based analysis on virtually every function across the enterprise. Through our robust product portfolio, our global research team provides thought leadership and insights that CIOs and other technology practitioners, HR, sales, legal, and finance executives, and supply chain and marketing professionals need to make the right decisions, every day.

In addition to our research analysts, as of December 31, 2017 we had 669 experienced consultants who combine our objective, independent research with a practical business perspective focused on the IT industry. Finally, our events are the largest of their kind, gathering together highly qualified audiences that include CIOs and other IT and C-suite executives, frontline IT architects and professionals, purchasers and providers of technology and supply chain products and services, business professionals, and other leaders across marketing, finance, legal, sales and HR.

## PRODUCTS AND SERVICES

Our diversified business model provides multiple entry points and sources of value for our clients that facilitate increased client spending on our research, consulting services and events. A critical part of our long-term strategy is to increase business volume and penetration with our most valuable clients, identifying relationships with the greatest sales potential and expanding those relationships by offering strategically relevant research and advice. We also seek to extend the Gartner brand name to develop new client relationships, augment our sales capacity and expand into new markets around the world. In addition, we seek to increase our revenue and operating cash flow through more effective pricing of our products and services. These initiatives have created additional revenue streams through more effective packaging, campaigning and cross-selling of our products and services.

Our principal products and services are delivered through our four business segments:

- RESEARCH. Gartner delivers independent, objective advice to leaders across the enterprise, primarily through a subscription-based digital media service. Gartner research is the fundamental building block for all Gartner services. We combine our proprietary research methodologies with extensive industry and academic relationships to create Gartner solutions that address each role.

Our research agenda is defined by clients' needs, focusing on the critical issues, opportunities and challenges they face every day. We are in steady contact with over 12,000 distinct organizations worldwide. We publish tens of thousands of pages of original research annually, and our analysts answer over 380,000 client inquiries every year. Our size and scale allow us to commit vast resources toward broader and deeper analyst coverage, and to deliver insight to our clients based on what they need and where they are. The ongoing interaction between our research analysts and our clients enables us to identify the most pertinent topics to them and develop relevant product enhancements to meet the evolving needs of users of our research. Our proprietary research content, presented in the form of reports, briefings, updates and related tools, is delivered directly to the client's desktop via our website and/or product-specific portals.

Clients normally sign subscription contracts that provide access to our research content for individual users over a defined period of time. We typically have a minimum contract period of 12 months for our research subscription contracts, and as of December 31, 2017, more than half of our contracts are multi-year.

- CONSULTING. Gartner Consulting deepens relationships with our largest research clients by extending the reach of our research through custom consulting engagements. Gartner Consulting brings together our unique research insight, benchmarking data, problem-solving methodologies and hands-on experience to improve the return on a client’s IT investment. Our consultants provide fact-based consulting services to help clients use and manage IT to optimize business performance.

Consulting solutions capitalize on Gartner assets that are invaluable to IT decision making, including: (1) our extensive research, which ensures that our consulting analyses and advice are based on a deep understanding of the IT environment and the business of IT; (2) our market independence, which keeps our consultants focused on our clients' success; and (3) our market-leading benchmarking capabilities, which provide relevant comparisons and best practices to assess and improve performance. Gartner Consulting provides solutions to CIOs and other IT executives, and to those professionals responsible for IT applications, enterprise architecture, go-to-market strategies, infrastructure and operations, program and portfolio management, and sourcing and vendor relationships. Consulting also provides targeted consulting services to professionals in specific industries. Finally, we provide actionable solutions for IT cost optimization, technology modernization and IT sourcing optimization initiatives.



- EVENTS. Gartner attracts more than 75,000 technology and business professionals and 1,100 industry-leading technology providers to its 75+ conferences worldwide each year. Attendees experience sessions led by Gartner analysts, cutting-edge technology solutions, peer exchange workshops, one-on-one analyst meetings, consulting diagnostic workshops, keynotes and more. They also provide attendees with an opportunity to interact with business executives from the world’s leading technology companies. In addition to role-specific summits and workshop-style seminars, Gartner holds its unique, flagship Symposium/ITxpo in eight locations worldwide annually. Since the addition of CEB, we’ve expanded to host 700+ more intimate live events each year plus 220+ exclusive CxO gatherings through the Evanta brand.

- TALENT ASSESSMENT & OTHER. Our offerings help organizations plan, recruit, assess, develop, engage and drive performance of their organizational talent against corporate objectives. Our talent assessment and development solutions help companies manage human capital investments. These offerings include cognitive ability assessments, skills and/or knowledge assessments, personality questionnaires, and job/role simulations and are generally implemented as pre-hire or post-hire applications. We also evaluate training programs and develop and offer workshops and technical training that enhance the potential of emerging leaders and their teams. Our proprietary workshops and technical training provide an executive education curriculum supported by e-learning resources for members seeking to enhance skill development for their staff. These tools and services use science and data to develop talent strategies for clients that are linked to business results.

On February 6, 2018, we announced that we had reached a definitive agreement to sell our CEB Talent Assessment business, which is a significant portion of the Talent Assessment & Other segment. Note 2 — Acquisitions and Divestiture and Note 16 — Subsequent Events in the Notes to the Consolidated Financial Statements provide additional information.

## COMPETITION

We believe that the principal factors that differentiate us from our competitors are:

- Superior research content - We believe that we create the broadest, highest-quality and most relevant research coverage across all major functional roles in the enterprise. Our research analysis generates unbiased insight that we believe is timely, thought-provoking and comprehensive, and that is known for its high quality, independence and objectivity.

• Our leading brand name - We have provided critical, trusted insight under the Gartner name for over 35 years.

- Our global footprint and established customer base - We have a global presence with clients in more than 100 countries on six continents. A substantial portion of our revenue is derived from sales outside of the United States.

- Experienced management team - Our management team is composed of research veterans and experienced industry executives with long tenure at Gartner.

- Substantial operating leverage in our business model - We have the ability to distribute our intellectual property and expertise across multiple platforms, including research publications, consulting engagements, conferences and executive programs, to derive incremental revenue and profitability.

- Vast network of analysts and consultants - As of December 31, 2017, we had over 1,900 research analysts and 669 experienced consultants located around the world. Our analysts collectively speak 59 languages and are located in 26 countries, enabling us to cover all aspects of technology and business on a global basis.

Notwithstanding these differentiating factors, we face competition from a significant number of independent providers of information products and services. We compete indirectly with consulting firms and other information providers, including electronic and print media companies. These indirect competitors could choose to compete directly with us in the future. In addition, we face competition from free sources of information that are available to our clients through the Internet. Limited barriers to entry exist in the markets in which we do business. As a result, new competitors may emerge and existing competitors may start to provide additional or complementary services. While we believe the breadth and depth of our research positions us well versus our competition, increased competition could result in loss of market share, diminished value in our products and services, reduced pricing, and increased sales and marketing expenditures.

## INTELLECTUAL PROPERTY

Our success has resulted in part from proprietary methodologies, software, reusable knowledge capital and other intellectual property rights. We rely on a combination of patent, copyright, trademark, trade secret, confidentiality, non-compete and other contractual provisions to protect our intellectual property rights. We have policies related to confidentiality, ownership, and the



use and protection of Gartner’s intellectual property. We also enter into agreements with our employees as appropriate that protect our intellectual property, and we enforce these agreements if necessary. We recognize the value of our intellectual property in the marketplace and vigorously identify, create and protect it. Additionally, we actively monitor and enforce contract compliance by our end users.

## EMPLOYEES

We had a total of 15,131 employees as of December 31, 2017, a significant increase compared to 8,813 at December 31, 2016. The increase consists of an 18% growth in heritage Gartner headcount as we continued to invest for future growth and the additional employees resulting from our acquisitions.

We had 8,486 employees based in the U.S. at December 31, 2017: 1,335 employees were located at our headquarters facility in Stamford, Connecticut and nearby; 1,584 employees were located at our Ft. Myers, Florida offices; 1,657 were located in Arlington, Virginia; and 3,910 employees were located elsewhere in the United States in 56 other offices. We had 6,645 employees located outside of the United States in 106 offices at December 31, 2017: 1,046 employees were located in Egham, the United Kingdom; 883 employees were located in Gurgaon, India; and the remaining 4,716 employees were located in 104 other offices.

Our employees may be subject to collective bargaining agreements at a company or industry level, or works councils, in those foreign countries where this is part of the local labor law or practice. We have experienced no work stoppages and consider our relations with our employees to be favorable.

## FINANCIAL INFORMATION

The Company's financial information by business segment and geographic area for the three-year period ended December 31, 2017 is provided in Note 14 — Segment Information in the Notes to the Consolidated Financial Statements.

## AVAILABLE INFORMATION

Our Internet address is www.gartner.com and the Investor Relations section of our website is located at www.investor.gartner.com. We make available free of charge, on or through the Investor Relations section of our website, printable copies of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the "SEC").

Also available at www.investor.gartner.com, under the “Corporate Governance” link, are printable and current copies of our (i) CEO & CFO Code of Ethics which applies to our Chief Executive Officer, Chief Financial Officer, Controller and other financial managers, (ii) Global Code of Conduct, which applies to all Gartner officers, directors and employees, wherever located, (iii) Board Principles and Practices, the corporate governance principles that have been adopted by our Board and (iv) charters for each of the Board’s standing committees: Audit, Compensation and Governance/Nominating.

## ITEM 1A. RISK FACTORS

We operate in a highly competitive and rapidly changing environment that involves numerous risks and uncertainties, some of which are beyond our control. In addition, we and our clients are affected by global economic conditions and trends. The following sections discuss many, but not all, of the risks and uncertainties that may affect our future performance, but is not intended to be all-inclusive. Any of the risks described below could have a material adverse impact on our business, prospects, results of operations, financial condition, and cash flows, and could therefore have a negative effect on the trading price of our common stock. Additional risks not currently known to us or that we now deem immaterial may also harm us and negatively affect your investment.

## Risks related to our business

On April 5, 2017, Gartner acquired CEB Inc. ("CEB"). References to "heritage Gartner" operating results and business measurements refer to Gartner excluding CEB. References to CEB refer to the operating results and business measurements of CEB subsequent to the acquisition.

Our operating results could be negatively impacted by global economic conditions. Our business is impacted by general economic conditions and trends, in the United States and abroad. In its January 2018 Global Economic Prospects report, the World Bank



notes that global growth is expected to continue while substantial downside risks are present, to include financial stress, protectionism, and geopolitical change. We also believe that terrorist attacks around the world have added additional uncertainty and risks to the economic environment. A downturn in growth could negatively and materially affect future demand for our products and services in general, in certain geographic regions, or in particular countries or industry sectors. Such difficulties could include the ability to maintain client retention, wallet retention and consulting utilization rates, achieve contract value and consulting backlog growth, and attract attendees and exhibitors to our events. Such developments could negatively impact our financial condition, results of operations, and cash flows.

We face significant competition and our failure to compete successfully could materially adversely affect our results of operations, financial condition, and cash flows. We face direct competition from a significant number of independent providers of information products and services, including information available on the Internet free of charge. We also compete indirectly against consulting firms and other information providers, including electronic and print media companies, some of which may have greater financial, information gathering and marketing resources than we do. These indirect competitors could also choose to compete directly with us in the future. In addition, low barriers to entry exist in the markets in which we do business. As a result, new competitors may emerge and existing competitors may start to provide additional or complementary services. Additionally, technological advances may provide increased competition from a variety of sources.

There can be no assurance that we will be able to successfully compete against current and future competitors and our failure to do so could result in loss of market share, diminished value in our products and services, reduced pricing and increased marketing expenditures. Furthermore, we may not be successful if we cannot compete effectively on quality of research and analysis, timely delivery of information, customer service, the ability to offer products to meet changing market needs for information and analysis, or price.

We may not be able to maintain the quality of our existing products and services. We operate in a rapidly evolving market, and our success depends upon our ability to deliver high quality and timely research and analysis to our clients. Any failure to continue to provide credible and reliable information and advice that is useful to our clients could have a material adverse effect on future business and operating results. Further, if our published data, opinions or viewpoints prove to be wrong, lack independence, or are not substantiated by appropriate research, our reputation may suffer and demand for our products and services may decline. In addition, we must continue to improve our methods for delivering our products and services in a cost-effective manner via the Internet and mobile applications. Failure to maintain state of the art electronic delivery capabilities could materially adversely affect our future business and operating results.

We may not be able to enhance and develop our existing products and services, or introduce the new products and services that are needed to remain competitive. The market for our products and services is characterized by rapidly changing needs for information and analysis. The development of new products is a complex and time-consuming process. Nonetheless, to maintain our competitive position, we must continue to anticipate the needs of our client organizations, develop, enhance and improve our existing as well as new products and services to address those needs, deliver all products and services in a timely, user-friendly and state of the art manner, and appropriately position and price new products and services relative to the marketplace and our costs of developing them. Any failure to achieve successful client acceptance of new products and services could have a material adverse effect on our business, results of operations and financial position. Additionally, significant delays in new product or service releases or significant problems in creating new products or services could materially adversely affect our business, results of operations and financial position.

As a result of the acquisition of CEB in 2017, a portion of our revenue is now derived from products, services, and tools that relate to human talent assessment, management, and development, which were new products for the Company. Revenue from these activities is concentrated in our Talent Assessment & Other business segment. Revenue from these activities is affected in part by our ability to create new offerings as demand changes, and our ability to support existing offerings. If we fail to successfully manage and grow this new business, our operating results, financial condition, and liquidity could be negatively impacted. Also, economic downturns in certain segments or geographic regions may cause reductions in discretionary spending by our customers, which may adversely affect our ability to maintain or grow the volume of business.

Technology is rapidly evolving, and if we do not continue to develop new product and service offerings in response to these changes, our business could suffer. Disruptive technologies are rapidly changing the environment in which we, our clients, and our competitors operate. We will need to continue to respond to these changes by enhancing our product and service offerings in order to maintain our competitive position. However, we may not be successful in responding to these forces and enhance our products on a timely basis, and any enhancements we develop may not adequately address the changing needs of our clients. Our future success will depend upon our ability to develop and introduce in a timely manner new or enhanced existing offerings that address the changing needs of this constantly evolving marketplace. Failure to develop products that meet the needs of our clients in a timely manner could have a material adverse effect on our business, results of operations, and financial position.



Our Research business depends on renewals of subscription-based services and sales of new subscription-based services for a significant portion of our revenue, and our failure to renew at historical rates or generate new sales of such services could lead to a decrease in our revenues. A large portion of our success depends on our ability to generate renewals of our subscription-based research products and services and new sales of such products and services, both to new clients and existing clients. These products and services constituted approximately 70% and 71% of our total revenues for 2017 and 2016, respectively. Generating new sales of our subscription-based products and services, both to new and existing clients, is a challenging, costly, and often time consuming process. If we are unable to generate new sales, due to competition or other factors, our revenues will be adversely affected.

Our research subscription contracts are typically for 12-months or longer. Our ability to maintain contract renewals is subject to numerous factors, including the following:

• delivering high-quality and timely analysis and advice to our clients;

• understanding and anticipating market trends and the changing needs of our clients; and

• providing products and services of the quality and timeliness necessary to withstand competition.

Additionally, as we continue to adjust our products and service offerings to meet our clients' continuing needs, we may shift the type and pricing of our products which may impact client renewal rates. While our heritage Research client retention rate was 84% at both December 31, 2017 and 2016, there can be no guarantee that we will continue to maintain this rate of client renewals.

Our Consulting business depends on non-recurring engagements and our failure to secure new engagements could lead to a decrease in our revenues. Consulting segment revenues constituted 10% of our total revenues in 2017 and 14% in 2016. Consulting engagements typically are project-based and non-recurring. Our ability to replace consulting engagements is subject to numerous factors, including the following:

• delivering consistent, high-quality consulting services to our clients;

• tailoring our consulting services to the changing needs of our clients; and

- our ability to match the skills and competencies of our consulting staff to the skills required for the fulfillment of existing or potential consulting engagements.

Any material decline in our ability to replace consulting engagements could have an adverse impact on our revenues and our financial condition. In addition, revenue from our contract optimization business can fluctuate significantly from period to period and is not predictable.

The profitability and success of our conferences, symposia and events could be adversely affected by external factors beyond our control. Our Events business constituted 10% of our total revenues in 2017 and 11% in 2016. The market for desirable dates and locations for conferences, symposia and events is highly competitive. If we cannot secure desirable dates and suitable venues for our conferences, symposia and events their profitability could suffer, and our financial condition and results of operations may be adversely affected. In addition, because our events are scheduled in advance and held at specific locations, the success of these events can be affected by circumstances outside of our control, such as labor strikes, transportation shutdowns and travel restrictions, economic slowdowns, reductions in government spending, geopolitical crises, terrorist attacks, war, weather, natural disasters, communicable diseases, and other occurrences impacting the global, regional, or national economies, the occurrence of any of which could negatively impact the success of the event. We also face the challenge of procuring venues that are sizeable enough at a reasonable cost to accommodate some of our major events.

Our sales to governments are subject to appropriations and may be terminated. We derive significant revenues from research and consulting contracts with the United States government and its respective agencies, numerous state and local governments and their respective agencies, and foreign governments and their agencies. At December 31, 2017 and 2016, approximately $435.0 million and $355.0 million, respectively, of our contracts were attributable to government entities. Our U.S. government contracts are subject to the approval of appropriations by the U.S. Congress to fund the agencies contracting for our services. Additionally, our contracts at the state and local levels, as well as foreign government contracts, are subject to various governmental authorizations and funding approvals and mechanisms. In general, most if not all of these contracts may be terminated at any time by the government entity without cause or penalty (“termination for convenience”). In addition, contracts with U.S. federal, state and local, and foreign governments and their respective agencies are subject to increasingly complex bidding procedures, compliance



requirements and intense competition. Should appropriations for the governments and agencies that contract with us be curtailed, or should our government contracts be terminated for convenience, we may experience a significant loss of revenues.

We may not be able to attract and retain qualified personnel which could jeopardize our future growth plans, as well as the quality of our products and services. Our success depends heavily upon the quality of our senior management, research analysts, consultants, sales and other key personnel. We face competition for qualified professionals from, among others, technology companies, market research firms, consulting firms, financial services companies and electronic and print media companies, some of which have a greater ability to attract and compensate these professionals. Additionally, some of the personnel that we attempt to hire are subject to non-compete agreements that could impede our short-term recruitment efforts. Any inability to retain key personnel, or to hire and train additional qualified personnel to support the evolving needs of clients or the projected growth in our business, could materially adversely affect the quality of our products and services, as well as future business and operating results.

We may not be able to maintain the equity in our brand name. We believe that our “Gartner” brand, in particular our independence, is critical to our efforts to attract and retain clients and that the importance of brand recognition will increase as competition increases. We may expand our marketing activities to promote and strengthen the Gartner brand and may need to increase our marketing budget, hire additional marketing and public relations personnel, and expend additional sums to protect our brand and otherwise increase expenditures to create and maintain client brand loyalty. If we fail to effectively promote, maintain, and protect the Gartner brand, or incur excessive expenses in doing so, our future business and operating results could be materially adversely impacted.

Our international operations expose us to a variety of operational and other risks which could negatively impact our future revenue and growth. We have clients in more than 100 countries and a substantial amount of our revenue is earned outside of the United States. Our operating results are subject to the risks inherent in international business activities, including general political and economic conditions in each country, changes in market demand as a result of tariffs and other trade barriers, challenges in staffing and managing foreign operations, changes in regulatory requirements, compliance with numerous foreign laws and regulations, and the difficulty of enforcing client agreements, collecting accounts receivable and protecting intellectual property rights or against economic espionage in international jurisdictions. Furthermore, we rely on local distributors or sales agents in some international locations. If any of these arrangements are terminated by our agent or us, we may not be able to replace the arrangement on beneficial terms or on a timely basis, or clients of the local distributor or sales agent may not want to continue to do business with us or our new agent.

Our business and operations may be conducted in countries where corruption has historically penetrated the economy. It is our policy to comply, and to require our local partners and those with whom we do business to comply, with all applicable anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act and U.K. Bribery Act, and with applicable local laws of the foreign countries in which we operate. Our business and reputation may be adversely affected if we fail to comply with such laws.

We are exposed to volatility in foreign currency exchange rates from our international operations. For both the years ended December 31, 2017 and 2016, 42% of our revenues were derived from sales outside of the United States. Revenues earned outside the U.S. are typically transacted in local currencies, which may fluctuate significantly against the U.S. dollar. While we may use forward exchange contracts to a limited extent to seek to mitigate foreign currency risk, our revenues and results of operations could be adversely affected by unfavorable foreign currency fluctuations. Additionally, our effective tax rate is increased as the U.S. dollar strengthens against foreign currencies, which could impact our operating results.

Natural disasters, terrorist acts, war, and other geopolitical events could disrupt our business. We operate in numerous U.S. and international locations, and we have offices in a number of major cities across the globe. A major weather event, earthquake, flood, drought, volcanic activity, disease, or other catastrophic natural disaster could significantly disrupt our operations. In addition, acts of civil unrest, failure of critical infrastructure, terrorism, armed conflict, war, and abrupt political change, as well as responses by various governments and the international community to such acts, can have a negative effect on our business. Such events could cause delays in initiating or completing sales, impede delivery of our products and services to our clients, disrupt or shut down the Internet or other critical client-facing and business processes, impede the travel of our personnel and clients, dislocate our critical internal functions and personnel, and in general harm our ability to conduct normal business operations, any of which can negatively impact our financial condition and operating results. Such events could also impact the timing and budget decisions of our clients, which could materially adversely affect our business.

Privacy concerns could damage our reputation and deter current and potential clients from using our products and services or attending our events. Concerns relating to global data privacy have the potential to damage our reputation and deter current and prospective clients from using our products and services or attending our events. In the ordinary course of our business and in accordance with applicable laws, we collect personal information (i) from our employees (ii) from the users of our products and services, including event attendees; and (iii) from prospective clients. We collect only basic personal information from our clients.



and prospects. While we believe our overall data privacy procedures are adequate, the theft or loss of such data, or concerns about our practices, even if unfounded, with regard to the collection, use, disclosure, or security of this personal information or other data protection related matters could damage our reputation and materially adversely affect our operating results. Any systems failure or compromise of our security that results in the disclosure of our users' personal data could seriously limit the consumption of our products and services and the attendance at our events, as well as harm our reputation and brand and, therefore, our business.

In addition, new data protection laws and regulations, particularly the new European Union General Data Protection Regulation (“GDPR”) (effective in May 2018), pose increasingly complex compliance challenges. We are closely monitoring these legal developments and are working towards timely GDPR compliance. In the meantime, Gartner will continue to maintain and rely upon our comprehensive global data protection compliance program, which includes administrative, technical, and physical controls to safeguard our associates’ and clients’ personal data. The interpretation and application of these laws in the United States, the European Union and elsewhere are often uncertain, inconsistent and ever changing. Complying with these various laws could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business.

Internet and critical internal computer system failures, cyber-attacks, or compromises of our systems or security could damage our reputation and harm our business. A significant portion of our business is conducted over the Internet and we rely heavily on computer systems to conduct our operations. Individuals, groups, and state-sponsored organizations may take steps that pose threats to our operations, our computer systems, our employees, and our customers. They may develop and deploy malicious software to gain access to our networks and attempt to steal confidential information, launch distributed denial of service attacks, or attempt other coordinated disruptions. These threats are constantly evolving and becoming more sophisticated, thereby increasing the difficulty of detecting and successfully defending against them. A cyber-attack, widespread Internet failure or Internet access limitations, or disruption of our critical information technology systems through denial of service, viruses, or other events could cause delays in initiating or completing sales, impede delivery of our products and services to our clients, disrupt other critical client-facing or business processes, or dislocate our critical internal functions. Such events could significantly harm our ability to conduct normal business operations and negatively impact our financial results.

We take steps to secure our management information systems, including our computer systems, intranet, proprietary websites, email and other telecommunications and data networks, and we carefully scrutinize the security of outsourced website and service providers prior to retaining their services. However, the security measures implemented by us or by our outside service providers may not be effective and our systems (and those of our outside service providers) may be vulnerable to theft, loss, damage and interruption from a number of potential sources and events, including unauthorized access or security breaches, cyber-attacks, computer viruses, power loss, or other disruptive events. Our reputation, brand, financial condition and operating results could be materially adversely affected if, as a result of a significant cyber event or other technology-related catastrophe, our operations are disrupted or shutdown; our confidential, proprietary information is stolen or disclosed; we incur costs or are required to pay fines in connection with stolen customer, employee, or other confidential information; we are required to dedicate significant resources to system repairs or increase cyber security protection; or we otherwise incur significant litigation, regulatory action and scrutiny or other costs as a result of these occurrences.

We may experience outages and disruptions of our online services if we fail to maintain an adequate operations infrastructure. Our increasing user traffic and complexity of our products and services demand more computing power. We have spent and expect to continue to spend substantial amounts to maintain data centers and equipment, to upgrade our technology and network infrastructure to handle increased traffic on our websites, and to deliver our products and services through emerging channels, such as mobile applications. However, any inefficiencies or operational failures could diminish the quality of our products, services, and user experience, resulting in damage to our reputation and loss of current and potential users, subscribers, and advertisers, potentially harming our financial condition and operating results.

Our outstanding debt obligations could negatively impact our financial condition and future operating results. As of December 31, 2017, the Company had outstanding debt of $2.5 billion under its 2016 term loan and revolving credit facility (the "2016 Credit Agreement") and $800.0 million of Senior Notes Due 2025 ("Senior Notes"). The 2016 Credit Agreement was amended three times during 2017 and it currently provides for a $1.5 billion Term loan A facility, a $500.0 million Term loan B facility, and a $1.2 billion revolving credit facility. The Company borrowed significant amounts in 2017 under the 2016 Credit Agreement, and issued the Senior Notes, in conjunction with the CEB acquisition. Additional information regarding the 2016 Credit Facility and the Senior Notes is included in Note 5 — Debt in the Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K.

The debt service requirements of these credit arrangements could impair our future financial condition and operating results. In addition, the affirmative, negative and financial covenants of the 2016 Credit Agreement, as amended, as well as the covenants related to the Senior Notes, could limit our future financial flexibility. A failure to comply with these covenants could result in acceleration of all amounts outstanding, which could materially impact our financial condition unless accommodations could be



negotiated with our lenders and Noteholders. No assurance can be given that we would be successful in doing so, or that any accommodations that we were able to negotiate would be on terms as favorable as those currently. The outstanding debt may limit the amount of cash or additional credit available to us, which could restrain our ability to expand or enhance products and services, respond to competitive pressures or pursue future business opportunities requiring substantial investments of additional capital.

We may require additional cash resources which may not be available on favorable terms or at all. We may require additional cash resources due to changed business conditions, implementation of our strategy and stock repurchase program, to repay indebtedness or to pursue future business opportunities requiring substantial investments of additional capital, including acquisitions. If our existing financial resources are insufficient to satisfy our requirements, we may seek additional borrowings or issue debt. Prevailing credit and debt market conditions may negatively affect debt availability and cost, and, as a result, financing may not be available in amounts or on terms acceptable to us, if at all. In addition, the incurrence of additional indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would further restrict our operations.

If we are unable to enforce and protect our intellectual property rights our competitive position may be harmed. We rely on a combination of copyright, trademark, trade secret, patent, confidentiality, non-compete and other contractual provisions to protect our intellectual property rights. Despite our efforts to protect our intellectual property rights, unauthorized third parties may obtain and use technology or other information that we regard as proprietary. Our intellectual property rights may not survive a legal challenge to their validity or provide significant protection for us. The laws of certain countries, particularly in emerging markets, do not protect our proprietary rights to the same extent as the laws of the United States. Accordingly, we may not be able to protect our intellectual property against unauthorized third-party copying or use, which could adversely affect our competitive position. Additionally, there can be no assurance that another party will not assert that we have infringed its intellectual property rights.

Our employees are subject to restrictive covenant agreements (which include restrictions on employees' ability to compete and solicit customers and employees) and assignment of invention agreements, to the extent permitted under applicable law. When the period expires relating to the particular restriction, former employees may compete against us. If a former employee violates the provisions of his/her restrictive covenant agreement, we seek to enforce the restrictions but there is no assurance that we will be successful in our efforts.

We have grown, and may continue to grow, through acquisitions and strategic investments, which could involve substantial risks. We have made and may continue to make acquisitions of, or significant investments in, businesses that offer complementary products and services or otherwise support our growth objectives. The risks involved in each acquisition or investment include the possibility of paying more than the value we derive from the acquisition, dilution of the interests of our current stockholders should we issue stock in the acquisition, decreased working capital, increased indebtedness, the assumption of undisclosed liabilities and unknown and unforeseen risks, the ability to retain key personnel of the acquired company, the inability to integrate the business of the acquired company, the time to train the sales force to market and sell the products of the acquired business, the potential disruption of our ongoing business and the distraction of management from our day to day business. The realization of any of these risks could adversely affect our business. Additionally, we face competition in identifying acquisition targets and consummating acquisitions.

Our business has increased significantly with the CEB acquisition. Our success depends, in part, upon our ability to continue to integrate its operations as well as manage the overall expanded business, which poses substantial challenges for management, including challenges related to the management and monitoring of new operations, new products, and associated increased cost and complexity. A failure to realize the expected benefits from the acquisition or successfully manage the expanded operation could adversely and materially affect our future business and operating results.

We face risks related to leased office space. With the CEB acquisition we assumed a significant amount of additional leased office space, in particular in Arlington, Virginia, which formerly served as CEB's headquarters location, and where the majority of its staff is currently located. Gartner is continuing with a plan originally approved by CEB before the acquisition to relocate and consolidate its office space in Arlington into a new, nearby building, and sublease the entirety of the existing space. The consolidation into the new building is expected to be completed in the first half of 2018 with the first set of moves already completed in December 2017. We have also made significant progress in subleasing the existing space and we expect to sublease all of the remaining space during 2018. However, if we are unable to sublease the remaining existing space at acceptable rents or at all, or if subtenants default on their sublease obligation with us or otherwise terminate the subleases with us, we may experience a loss of planned sublease rental income, which could result in a material charge which could adversely affect our operating results.

We are also in the process of adding new leased space. If the new spaces are not completed on schedule, or if the landlord defaults on its commitments and obligations pursuant to the new leases, we may incur additional expenses. In addition, unanticipated difficulties in initiating operations in this new space, including construction delays, IT system interruptions, or other infrastructure



support problems, could result in a delay in moving into the new space, resulting in a loss of employee and operational productivity and a loss of revenue and/or additional expenses, which could also have an adverse, material impact on our operating results.

We face risks related to litigation. We are, and in the future may be, subject to a variety of legal actions, such as employment, breach of contract, intellectual property-related, and business torts, including claims of unfair trade practices and misappropriation of trade secrets. Given the nature of our business, we are also subject to defamation (including libel and slander), negligence, or other claims relating to the information we publish. Regardless of the merits and despite vigorous efforts to defend any such claim can affect our reputation, and responding to any such claim could be time consuming, result in costly litigation and require us to enter into settlements, royalty and licensing agreements which may not be offered or available on reasonable terms. If a claim is made against us which we cannot defend or resolve on reasonable terms, our business, brand, and financial results could be materially adversely affected.

We face risks related to taxation. We are a global company and a substantial amount of our earnings is generated outside of the United States and taxed at rates less than the U.S. statutory federal income tax rate. Our effective tax rate, financial position and results of operations could be adversely affected by earnings being higher than anticipated in jurisdictions with higher statutory tax rates and, conversely, lower than anticipated in jurisdictions that have lower statutory tax rates, by changes in the valuation of our deferred tax assets and/or by changes in tax laws or accounting principles and their interpretation by relevant authorities.

At the present time, the United States and other countries where we do business have either changed or are actively considering changes in their tax, accounting and other related laws. In the United States, recently enacted Tax Reform introduced several new complicated tax laws which could unfavorably impact our future effective tax rate. In 2014, Ireland modified its tax residency rules. While these changes are not effective until 2021 for many companies with Irish resident operations, including Gartner, the new rules could increase our effective tax rate at that future date. Likewise, during 2015, the Organization for Economic Cooperation and Development (“OECD”) released final reports on various actions items associated with its initiative to prevent Base Erosion and Profit Shifting (“BEPS”). Numerous countries have and continue to propose unilateral tax law changes intended to address BEPS. The future enactment by various governments of these and other proposals could significantly increase our tax obligations in many countries where we do business. These actual, potential, and other changes, both individually and collectively, could materially increase our effective tax rate and negatively impact our financial position, results of operations, and cash flows. In addition, as regulations and guidance evolve with respect to the U.S. Tax Cuts and Jobs Act of 2017, and as we gather more information and perform additional analysis, the impact of the new law may differ from previous estimates and may materially affect our results of operations and financial position in the future.

In addition, our tax filings for various years are subject to examination by domestic and international taxing authorities and, during the ordinary course of business, we are under audit by various tax authorities. Recent and future actions on the part of the OECD and various governments have increased scrutiny of our tax filings. Although we believe that our tax filings and related accruals are reasonable, the final resolution of tax audits may be materially different from what is reflected in our historical tax provisions and accruals and could have a material adverse effect on our effective tax rate, financial position, results of operations, and cash flows, particularly in major taxing jurisdictions including, but not limited to: the United States, Ireland, India, Canada, United Kingdom, Japan, and France.

As of December 31, 2017, we had approximately $194.0 million of accumulated undistributed earnings in our non-U.S. subsidiaries. Our cash and cash equivalents are held in numerous locations throughout the world. At December 31, 2017, 97% of our cash and cash equivalents was held overseas, with a substantial portion representing accumulated undistributed earnings of our non-U.S. subsidiaries. Under U.S. GAAP, no provision for income taxes that may result from the remittance of accumulated undistributed foreign earnings is required if the Company intends to reinvest such earnings overseas indefinitely. Our current liquidity requirements do not demonstrate a need to repatriate accumulated undistributed foreign earnings to fund our U.S. operations or otherwise satisfy the liquidity needs of our U.S. operations. Accordingly, the Company intends to continue to reinvest substantially all of its accumulated undistributed foreign earnings, except in instances in which the repatriation of those earnings would result in minimal additional tax. As a result, we have not recognized income tax expense on the amounts deemed permanently reinvested. However, with the recently enacted U.S. Tax Cuts and Jobs Act of 2017, we envision that the income tax that would be payable if such earnings were repatriated would be minimal.

Our corporate compliance program cannot guarantee that we are in compliance with all applicable laws and regulations. We operate in a number of countries, including emerging markets, and as a result we are required to comply with numerous, and in many cases, changing international and U.S. federal, state and local laws and regulations. As a result, we have a corporate compliance program which includes the creation of appropriate policies defining employee behavior that mandate adherence to laws, employee training, annual affirmations, monitoring and enforcement. However, if any employee fails to comply with, or intentionally disregards, any of these laws, regulations or our policies, a range of liabilities could result for the employee and for



the Company, including, but not limited to, significant penalties and fines, sanctions and/or litigation, and the expenses associated with defending and resolving any of the foregoing, any of which could have a negative impact on our reputation and business.

## Risks related to our common stock

Our operating results may fluctuate from period to period and/or the financial guidance we have given may not meet the expectations of investors, which may cause the price of our common stock to decline. Our quarterly and annual operating results may fluctuate in the future as a result of many factors, including the timing of the execution of research contracts, the extent of completion of consulting engagements, the timing of symposia and other events, the amount of new business generated, the mix of domestic and international business, currency fluctuations, changes in market demand for our products and services, the timing of the development, introduction and marketing of new products and services, competition in our industry, the impact of our acquisitions, and general economic conditions. An inability to generate sufficient earnings and cash flow, and achieve our forecasts, may impact our operating and other activities. The potential fluctuations in our operating results could cause period-to-period comparisons of operating results not to be meaningful and may provide an unreliable indication of future operating results. Furthermore, our operating results may not meet the expectations of investors or the financial guidance we have previously provided. If this occurs, the price of our common stock could decline.

Our stock price may be impacted by factors outside of our control and you may not be able to resell shares of our common stock at or above the price you paid. The price of our common stock is subject to significant fluctuations in response to, among other factors, developments in the industries in which we do business, general economic conditions, general market conditions, geopolitical events, changes in the nature and composition of our stockholder base, changes in securities analysts' recommendations regarding our securities and our performance relative to securities analysts' expectations for any quarterly period, as well as other factors outside of our control including any and all factors that move the securities markets generally. These factors may materially adversely affect the market price of our common stock.

Future sales or issuances of our common stock in the public market could lower our stock price. Sales of a substantial number of shares of common stock in the public market by our current stockholders, or the threat that substantial sales may occur, could cause the market price of our common stock to decrease significantly or make it difficult for us to raise additional capital by selling stock. The issuance of additional shares of our common stock could also lower the market price of our common stock. Furthermore, we have various equity incentive plans that provide for awards in the form of stock appreciation rights, restricted stock, restricted stock units and other stock-based awards which have the effect of adding shares of common stock into the public market. We have a board-approved share repurchase program and at December 31, 2017, approximately $1.1 billion remained available for share purchases under this program. No assurance can be given that we will continue these share repurchase activities in the future when the program is completed, or in the event that the price of our common stock reaches levels at which repurchases are not accretive.

Future sales of our common stock from grants and awards could lower our stock price. As of December 31, 2017, the aggregate number of shares of our common stock issuable pursuant to outstanding grants and awards under our equity incentive plans was approximately 2.8 million shares (approximately 1.3 million of which have vested). In addition, at the present time, approximately 5.6 million shares may be issued in connection with future awards under our equity incentive plans. Shares of common stock issued under these plans are freely transferable and have been registered under the Securities Act of 1933, as amended (the "Securities Act"), except for any shares held by affiliates (as that term is defined in Rule 144 under the Securities Act) which are subject to certain limitations. We cannot predict the size of future issuances of our common stock or the effect, if any, that future issuances and sales of shares of our common stock will have on the market price of our common stock.

Interests of certain of our significant stockholders may conflict with yours. To our knowledge, as of the date hereof, and based upon publicly-available SEC filings, five institutional investors each presently hold over 5% of our common stock. While no stockholder or institutional investor individually holds a majority of our outstanding shares, these significant stockholders may be able, either individually or acting together, to exercise significant influence over matters requiring stockholder approval, including the election of directors, amendment of our certificate of incorporation, adoption or amendment of equity plans and approval of significant transactions such as mergers, acquisitions, consolidations and sales or purchases of assets. In addition, in the event of a proposed acquisition of the Company by a third party, this concentration of ownership may delay or prevent a change of control in us. Accordingly, the interests of these stockholders may not always coincide with our interests or the interests of other stockholders, or otherwise be in the best interests of us or all stockholders.

Our anti-takeover protections may discourage or prevent a change of control, even if a change in control would be beneficial to our stockholders. Provisions of our restated certificate of incorporation and bylaws and Delaware law may make it difficult for any party to acquire control of us in a transaction not approved by our Board of Directors. These provisions include: (i) the ability of our Board of Directors to issue and determine the terms of preferred stock; (ii) advance notice requirements for inclusion of stockholder proposals at stockholder meetings; and (iii) the anti-takeover provisions of Delaware law. These provisions could



discourage or prevent a change of control or change in management that might provide stockholders with a premium to the market price of their common stock.

## ITEM 1B. UNRESOLVED STAFF COMMENTS.

The Company has no unresolved written comments that were received from the SEC staff 180 days or more before the end of our fiscal year relating to our periodic or current reports under the Exchange Act.

## ITEM 2. PROPERTIES.

Our acquisition of CEB in 2017 resulted in a significant increase in the number of properties where we have business operations. As of December 31, 2017, we leased 59 domestic and 106 international active properties. These offices support our executive and administrative activities, research and consulting, sales, systems support, operations, and other functions. We have a significant presence in Stamford, Connecticut; Ft. Myers, Florida; Arlington, Virginia; Egham, the United Kingdom and Gurgaon, India. The Company does not own any real properties.

Our Stamford corporate headquarters are located in 213,000 square feet of leased office space in three buildings located on the same campus. The Company's lease on the Stamford headquarters facility expires in 2027 and contains three five-year renewal options at fair value. In 2016 we leased an additional 21,179 square feet of space in a fourth building adjacent to our Stamford headquarters facility under a five-year lease.

In Ft. Myers we lease 257,795 square feet in two buildings located on the same campus and we also have an additional 41,590 square feet of leased space in two separate but nearby buildings that house staff training and other facilities. Our Ft. Myers leases expire in 2030. To accommodate future growth in Ft. Myers we have also signed a lease (20 year lease with a termination option at 15 years) with a new multi-building development just south of our current campus for an additional 242,000 square feet to be delivered in phases in 2018 and 2019. This site also offers us options for further growth as necessary.

In Arlington, which was the heritage CEB corporate headquarters location, we are progressing with a strategy to consolidate multiple heritage CEB and Gartner offices that occupied 439,354 square feet across 4 different locations into 290,215 square feet of space in a single building which is a heritage CEB lease for a 15 year term that expires at the end of 2032. We expect to complete this consolidation by the end of 2018.

In Egham, we have consolidated most of our operations into a new 107,540 square foot building that opened in September 2017. The Egham lease has a term of 15 years. We also continue to maintain some operations in an adjacent legacy building. In Gurgaon we have two locations, a 30,000 square foot office and a 48,468 square foot office that was part of the heritage CEB business. To accommodate future growth in Gurgaon and consolidate our operations we have signed an agreement to lease 250,000 square feet in a new development to be delivered in 2019. This development, which is close to our current locations, also offers us potential for further growth as necessary.

In addition to the above locations, we have also announced the creation of a new Center of Excellence to be located in Irving, TX. To support the growth of this site we have signed a lease (15 year lease with termination option at 10 years) for 152,000 square feet that will be occupied in a phased manner from 2018 through 2020.

We expect to continue to invest in our business by adding headcount, and as a result, we may need additional office space in various locations. Should additional space be necessary, we believe that it will be available and at reasonable terms.

## ITEM 3. LEGAL PROCEEDINGS.

We are involved in various legal and administrative proceedings and litigation arising in the ordinary course of business. The outcome of these individual matters is not predictable at this time. However, we believe that the ultimate resolution of these matters, after considering amounts already accrued and insurance coverage, will not have a material adverse effect on our financial position, results of operations, or cash flows in future periods.

## ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.



## PART II

## ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Our common stock is listed on the New York Stock Exchange under the symbol "IT". As of January 31, 2018, there were 1,263 holders of record of our common stock. Our 2018 Annual Meeting of Stockholders will be held on May 24, 2018 at the Company's corporate headquarters in Stamford, Connecticut. We did not submit any matter to a vote of our stockholders during the fourth quarter of 2017.

The following table sets forth the high and low sale prices for our common stock as reported on The New York Stock Exchange for the periods indicated:

<table><tr><td rowspan="2"></td><td colspan="3">2017</td><td colspan="3">2016</td></tr><tr><td>High</td><td>Low</td><td>High</td><td>Low</td><td>High</td><td>Low</td></tr><tr><td>Quarter ended March 31</td><td>$ 112.42</td><td>$ 90.37</td><td>$ 89.73</td><td>$ 77.80</td><td></td><td></td></tr><tr><td>Quarter ended June 30</td><td>124.92</td><td>107.70</td><td>103.00</td><td>86.17</td><td></td><td></td></tr><tr><td>Quarter ended September 30</td><td>130.02</td><td>115.86</td><td>100.74</td><td>87.86</td><td></td><td></td></tr><tr><td>Quarter ended December 31</td><td>$ 126.22</td><td>$ 115.01</td><td>$ 105.45</td><td>$ 84.54</td><td></td><td></td></tr></table>

## DIVIDEND POLICY

We currently do not pay cash dividends on our common stock. In addition, our 2016 Credit Agreement contains a negative covenant which may limit our ability to pay dividends.

## SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

The equity compensation plan information set forth in Part III, Item 12 of this Form 10-K is hereby incorporated by reference into this Part II, Item 5.

## SHARE REPURCHASES

The Company has a $1.2 billion board authorization to repurchase the Company's common stock. The Company may repurchase its common stock from time-to-time in amounts and at prices the Company deems appropriate, subject to the availability of stock, prevailing market conditions, the trading price of the stock, the Company's financial performance and other conditions. Repurchases may be made through open market purchases, private transactions or other transactions and will be funded from cash on hand and borrowings under the Company's 2016 Credit Agreement. Repurchases may also be made from time-to-time in connection with the settlement of the Company's share-based compensation awards.

The following table summarizes the repurchases of our outstanding common stock in the three months ended December 31, 2017 pursuant to our $1.2 billion share repurchase authorization and pursuant to the settlement of share-based compensation awards:

<table><tr><td>Period</td><td>Total Number of Shares Purchased (#)</td><td>Average Price Paid Per Share ($)</td><td>Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in billions)</td></tr><tr><td>October</td><td>5,685</td><td>$ 124.07</td><td></td></tr><tr><td>November</td><td>14,987</td><td>118.40</td><td></td></tr><tr><td>December</td><td>13,275</td><td>120.89</td><td></td></tr><tr><td>Total (1)</td><td>33,947</td><td>$ 120.32</td><td>$ 1.1</td></tr></table>

(1) For the year ended December 31, 2017, the Company repurchased a total of 0.4 million shares, all of which were repurchased pursuant to the settlement of share-based compensation awards. No shares were repurchased under the Company's publicly-announced $1.2 billion share repurchase program.



The fiscal years presented below are for the respective twelve-month period from January 1 through December 31. Data for all years was derived or compiled from our audited consolidated financial statements included herein or from submissions of our Form 10-K in prior years. The selected consolidated financial data should be read in conjunction with our consolidated financial statements and related notes contained in this Annual Report on Form 10-K.

<table><tr><td>(In thousands, except per share data)</td><td>2017</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>STATEMENT OF OPERATIONS DATA:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Research</td><td>$2,471,280</td><td>$1,857,001</td><td>$1,614,904</td><td>$1,479,976</td><td>$1,303,984</td></tr><tr><td>Consulting</td><td>327,661</td><td>318,934</td><td>296,317</td><td>313,758</td><td>281,284</td></tr><tr><td>Events</td><td>337,903</td><td>268,605</td><td>251,835</td><td>227,707</td><td>198,945</td></tr><tr><td>Talent Assessment &amp; Other</td><td>174,650</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total revenues</td><td>3,311,494</td><td>2,444,540</td><td>2,163,056</td><td>2,021,441</td><td>1,784,213</td></tr><tr><td>Operating (loss) income</td><td>(6,329)</td><td>305,141</td><td>287,997</td><td>286,162</td><td>275,492</td></tr><tr><td>Net income</td><td>$3,279</td><td>193,582</td><td>$175,635</td><td>$183,766</td><td>$182,801</td></tr><tr><td>PER SHARE DATA:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic income per share</td><td>$0.04</td><td>$2.34</td><td>$2.09</td><td>$2.06</td><td>$1.97</td></tr><tr><td>Diluted income per share</td><td>$0.04</td><td>$2.31</td><td>$2.06</td><td>$2.03</td><td>$1.93</td></tr><tr><td>Weighted average shares outstanding:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>88,466</td><td>82,571</td><td>83,852</td><td>89,337</td><td>93,015</td></tr><tr><td>Diluted</td><td>89,790</td><td>83,820</td><td>85,056</td><td>90,719</td><td>94,830</td></tr><tr><td>OTHER DATA:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$538,908</td><td>474,233</td><td>$372,976</td><td>$365,302</td><td>$423,990</td></tr><tr><td>Total assets</td><td>7,283,173</td><td>2,367,335</td><td>2,168,517</td><td>1,904,351</td><td>1,783,582</td></tr><tr><td>Long-term debt</td><td>2,943,341</td><td>672,500</td><td>790,000</td><td>385,000</td><td>136,250</td></tr><tr><td>Stockholders&#x27; equity (deficit)</td><td>983,465</td><td>60,878</td><td>(132,400)</td><td>161,171</td><td>361,316</td></tr><tr><td>Cash provided by operating activities</td><td>$254,517</td><td>365,632</td><td>$345,561</td><td>$346,779</td><td>$315,654</td></tr></table>

The following items impact the comparability and presentation of our consolidated data:

- In April 2017 the Company acquired CEB. The operating results of CEB were included in our operating results beginning on the acquisition date. The Company also made other acquisitions in 2017, 2016 and 2015. See Note 2 — Acquisitions and Divestiture in the Notes to the Consolidated Financial Statements for additional information.

- In December 2017 we recorded a $59.6 million one-time tax benefit related to the Tax Cuts and Jobs Act of 2017 which increased our diluted earnings per share by approximately $0.66 per share. See Note 10 — Income Taxes in the Notes for additional information.

- In 2017 we repurchased 0.4 million of our common shares. We also repurchased 0.6 million, 6.2 million, 5.9 million, and 3.4 million of our common shares in 2016, 2015, 2014, and 2013, respectively. We used $41.3 million, $59.0 million, $509.0 million, $432.0 million, and $181.7 million in cash for share repurchases in 2017, 2016, 2015, 2014, and 2013, respectively. See Note 7 — Stockholders' Equity in the Notes for additional information.

- In 2017 we borrowed additional amounts under an amended credit facility as well as the issuance of Senior Notes. Note 5 — Debt in the Notes provides additional information.

- In 2017 we added the Talent Assessment & Other segment as a result of the CEB acquisition. Note 14 — Segments in the Notes provides additional information. In February 2018 we announced a definitive agreement to sell a significant portion of this segment. Additional information related to the sale is provided in Notes 2 and 16.



## ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The purpose of the following Management’s Discussion and Analysis (“MD&A”) is to facilitate an understanding of significant factors influencing the operating results, financial condition and cash flows of Gartner, Inc. Additionally, the MD&A conveys our expectations of the potential impact of known trends, events or uncertainties that may impact future results. You should read this discussion in conjunction with our consolidated financial statements and related notes included in this Annual Report on Form 10-K. Historical results and percentage relationships are not necessarily indicative of operating results for future periods. References to "Gartner," the "Company," "we," "our" and "us" in this MD&A are to Gartner, Inc. and its consolidated subsidiaries.

## Acquisitions of CEB Inc. and Other Businesses

On April 5, 2017, the Company completed its acquisition of CEB Inc. ("CEB"). Note 2 — Acquisitions and Divestiture in the Notes to Consolidated Financial Statements provides additional information regarding the CEB acquisition. Our operating results discussed below for the year ended December 31, 2017 include the results of CEB beginning on the acquisition date. References to "heritage Gartner" operating results and business measurements below refer to Gartner excluding CEB. References to "CEB" below refer to the operating results and business measurements of CEB subsequent to the acquisition.

We also acquired other businesses in 2017, 2016 and 2015, which are also described in Note 2 — Acquisitions and Divestiture in the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K. The operating results of these other acquired businesses were not material to our consolidated or segment results.

## Talent Assessment Business - Announcement of a Definitive Agreement to Sell

On February 6, 2018, the Company announced that it had reached a definitive agreement to sell its CEB Talent Assessment business to Exponent Private Equity, a UK-based private equity firm, for $400.0 million. The agreement comes at the end of a previously announced process to evaluate strategic alternatives for CEB Talent Assessment, formerly SHL, which was acquired by Gartner as part of the CEB acquisition. The transaction is expected to close in the first half of 2018 and is subject to customary closing conditions.

## FORWARD-LOOKING STATEMENTS

In addition to historical information, this Annual Report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statements other than statements of historical fact, including statements regarding our expectations, beliefs, hopes, intentions or strategies regarding the future. In some cases, forward-looking statements can be identified by the use of words such as "may," "will," "expect," "should," "could," "believe," "plan," "anticipate," "estimate," "predict," "potential," "continue" or other words of similar meaning.

Forward-looking statements are subject to risks, estimates and uncertainties that could cause actual results to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in Part 1, Item 1A, Risk Factors included in this Annual Report on Form 10-K. Readers should not place undue reliance on these forward-looking statements, which reflect management's opinion only as of the date on which they were made. Except as required by law, we disclaim any obligation to review or update these forward-looking statements to reflect events or circumstances as they occur. Readers should carefully review our risk factors described in this Annual Report on Form 10-K.



## BUSINESS OVERVIEW

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 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’re trusted as an objective resource and critical partner by more than 12,000 organizations in more than 100 countries across all major functions, in every industry and enterprise size. Gartner is headquartered in Stamford, Connecticut, U.S.A. and, as of December 31, 2017, we had more than 15,000 associates, including 2,650 research analysts and consultants.

Gartner delivers its products and services globally through four business segments: Research, Consulting, Events, and Talent Assessment & Other:

- Research provides trusted, objective insights and advice on the mission-critical priorities of leaders across all functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to our analysts, peer networking services and membership programs that enable our clients to make better decisions. Gartner's traditional strengths in IT, marketing and supply chain research were enhanced in 2017 with Gartner's acquisition of CEB, Inc., which added CEB's best practice and talent management research insights across a range of business functions, to include human resources, sales, legal and finance.

Consulting provides customized solutions to unique client needs through on-site, day-to-day support, as well as proprietary tools for measuring and improving IT performance with a focus on cost, performance, efficiency and quality.

- Events provides business professionals across the organization the opportunity to learn, share and network. From our flagship CIO event Gartner Symposium/ITxpo, to industry-leading conferences focused on specific business roles and topics, to member-driven sessions, our events enable attendees to experience the best of Gartner insight and advice live.

- Talent Assessment & Other helps organizations assess, engage, manage and improve talent. This is accomplished through knowledge and skills assessments, training programs, workshops, and survey and questionnaire services.



## BUSINESS MEASUREMENTS

We believe that the following business measurements are important performance indicators for our business segments:

<table><tr><td>BUSINESS SEGMENT</td><td>BUSINESS MEASUREMENTS</td></tr><tr><td>Research</td><td>Total contract value represents the value attributable to all of our subscription-related contracts. It is calculated as the annualized value of all contracts in effect at a specific point in time, without regard to the duration of the contract. Total contract value primarily includes Research deliverables for which revenue is recognized on a ratable basis, as well as other deliverables (primarily Events tickets) for which revenue is recognized when the deliverable is utilized.</td></tr><tr><td></td><td>Client retention rate represents a measure of client satisfaction and renewed business relationships at a specific point in time. Client retention is calculated on a percentage basis by dividing our current clients, who were also clients a year ago, by all clients from a year ago. Client retention is calculated at an enterprise level, which represents a single company or customer.</td></tr><tr><td></td><td>Wallet retention rate represents a measure of the amount of contract value we have retained with clients over a twelve-month period. Wallet retention is calculated on a percentage basis by dividing the contract value of clients, who were clients one year ago, by the total contract value from a year ago, excluding the impact of foreign currency exchange. When wallet retention exceeds client retention, it is an indication of retention of higher-spending clients, or increased spending by retained clients, or both. Wallet retention is calculated at an enterprise level, which represents a single company or customer.</td></tr><tr><td>Consulting</td><td>Consulting backlog represents future revenue to be derived from in-process consulting and measurement engagements.</td></tr><tr><td></td><td>Utilization rate represents a measure of productivity of our consultants. Utilization rates are calculated for billable headcount on a percentage basis by dividing total hours billed by total hours available to bill.</td></tr><tr><td></td><td>Billing rate represents earned billable revenue divided by total billable hours.</td></tr><tr><td></td><td>Average annualized revenue per billable headcount represents a measure of the revenue generating ability of an average billable consultant and is calculated periodically by multiplying the average billing rate per hour times the utilization percentage times the billable hours available for one year.</td></tr><tr><td>Events</td><td>Number of events represents the total number of hosted events completed during the period. Single day, local events are excluded.</td></tr><tr><td></td><td>Number of attendees represents the total number of people who attend events. Single day, local events are excluded.</td></tr></table>



## EXECUTIVE SUMMARY OF OPERATIONS AND FINANCIAL POSITION

We have executed a consistent growth strategy since 2005 to drive revenue and earnings growth. The fundamentals of our strategy include a focus on creating extraordinary research insight, delivering innovative and highly differentiated product offerings, building a strong sales capability, providing world class client service with a focus on client engagement and retention, and continuously improving our operational effectiveness. We also continue to focus on maximizing shareholder value. During 2017, we repurchased 0.4 million shares of our outstanding common stock and we acquired CEB, an industry leader in providing best practice and talent management insights, and L2, Inc. ("L2"), a subscription-based research business that benchmarks the digital performance of brands. Note 2 — Acquisitions and Divestiture in the Notes to Consolidated Financial Statements provides additional information regarding these acquisitions.

We had total revenues of $3.3 billion in 2017, an increase of 35% over 2016 on both a reported basis and adjusted for foreign exchange impact. On a reported basis, CEB contributed $522.9 million of the increase in total revenues. Net income declined to $3.3 million in 2017 from $193.6 million in 2016 and, as a result, diluted earnings per share was $0.04 in 2017 compared to $2.31 in 2016. See Note 10 — Income Taxes in the Notes to Consolidated Financial Statements for information concerning the net favorable impact of $59.6 million on the Company's 2017 income tax provision from the Tax Cuts and Jobs Act of 2017.

Research revenues increased to $2.5 billion during 2017, or 33% compared to 2016 on both a reported basis and adjusted for the impact of foreign currency exchange. Heritage Gartner revenues increased $304.7 million in 2017 compared to 2016, which represents a 16% increase on a reported basis, with approximately one point of the increase due to L2, which we acquired in the first quarter of 2017. Adjusted for the foreign exchange impact, heritage Gartner revenues also increased by 16% year-over-year. On a reported basis, CEB contributed $309.6 million of the 2017 increase in Research revenues. The Research gross contribution margin declined by two points during 2017, primarily due to the impact of the deferred revenue fair value accounting adjustment resulting from the CEB acquisition. Heritage Gartner client retention and wallet retention both remained strong at 84% and 106%, respectively, as of December 31, 2017.

Consulting revenues increased to $327.7 million in 2017, or 3% compared to 2016 on both a reported basis and adjusted for the impact of foreign currency exchange. The Consulting gross contribution margin was 29% in 2017 compared to 28% in 2016. Consultant utilization was 64% and 66% in 2017 and 2016, respectively. We had 682 billable consultants at December 31, 2017 compared to 628 at December 31, 2016. Backlog was $95.2 million at December 31, 2017.

Events revenues increased to $337.9 million in 2017, or 26% compared to 2016 on a reported basis and 25% adjusted for the impact of foreign currency exchange. Heritage Gartner revenues increased $30.7 million in 2017 compared to 2016, an 11% increase on a reported basis and 10% adjusted for the foreign exchange impact. CEB contributed $38.6 million of the revenue increase on a reported basis. The heritage Gartner Events gross contribution margin was 49% and 51% for 2017 and 2016, respectively. In the heritage Gartner business, we held 65 events and 66 events in 2017 and 2016, respectively, while the number of attendees for 2017 increased 17% and exhibitors increased 3% compared to 2016, with average revenue per exhibitor up by 5% while average revenue per attendee was flat. CEB held four events during 2017 with 3,578 attendees.

As a result of the CEB acquisition, we added a new reportable segment in second quarter 2017 called Talent Assessment & Other, which contributed $174.7 million of revenues during 2017.

For a more complete discussion of our results by segment, see Segment Results below.

Cash provided by operating activities was $254.5 million and $365.6 million during 2017 and 2016, respectively. As of December 31, 2017, we had $538.9 million of cash and cash equivalents, which excludes amounts deemed to be held-for-sale, and $558.0 million of available borrowing capacity on our revolving credit facility. For a more complete discussion of our cash flows and financial position, see Liquidity and Capital Resources below.

## FLUCTUATIONS IN QUARTERLY RESULTS

Our quarterly and annual revenues, operating income (loss) and cash flows fluctuate as a result of many factors, including: the timing of our Symposium/ITxpo series that normally occurs during the fourth quarter, as well as our other events; the timing and amount of new business generated, including from acquisitions; the mix of domestic and international business; domestic and international economic conditions; changes in market demand for our products and services; changes in foreign currency rates; the timing of the development, introduction and marketing of new products and services; competition in the industry; the payment of performance compensation; and other factors that are beyond our control. The potential fluctuations in our operating income (loss) could cause period-to-period comparisons of operating results not to be meaningful and could provide an unreliable indication of future operating results and cash flows.



## CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of our consolidated financial statements requires the application of appropriate accounting policies and the use of estimates. Our significant accounting policies are described in Note 1 — Business and Significant Accounting Policies in the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K. Management considers the policies discussed below to be critical to an understanding of our financial statements because their application requires complex and subjective management judgments and estimates. Specific risks for these critical accounting policies are also described below.

The preparation of our consolidated financial statements requires us to make estimates and assumptions about future events. We develop our estimates using both current and historical experience, as well as other factors, including the general economic environment and actions we may take in the future. We adjust such estimates when facts and circumstances dictate. However, our estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on our best judgment at a point in time and, as such, these estimates may ultimately differ materially from actual results. Ongoing changes in our estimates could be material and would be reflected in the Company’s consolidated financial statements in future periods.

Our critical accounting policies pertaining to the years presented in the consolidated financial statements included in this Annual Report on Form 10-K are as follows:

Revenue recognition — Revenue is recognized in accordance with the requirements of U.S. GAAP, as well as SEC Staff Accounting Bulletin No. 104, Revenue Recognition. Revenue is only recognized when all required criteria for revenue recognition have been met. Revenue by significant source is accounted for as follows:

- Research revenues are mainly derived from subscription contracts for research products. The related revenues are deferred and recognized ratably over the applicable contract term. Fees derived from assisting organizations in selecting the right business software for their needs are recognized when the leads are provided to vendors.

- Consulting revenues are principally generated from fixed fee and time and material engagements. Revenues from fixed fee contracts are recognized on a proportional performance basis. Revenues from time and materials engagements are recognized as work is delivered and/or services are provided. Revenues related to contract optimization contracts are contingent in nature and are only recognized upon satisfaction of all conditions related to their payment.

• Events revenues are deferred and recognized upon the completion of the related symposium, conference or exhibition.

- Talent Assessment & Other revenues arising from knowledge and skill assessment services are recognized depending on the nature of the underlying contract: (i) ratably over the term of the service period; (ii) upon delivery; or (iii) on a proportional performance basis. Revenues from training programs and survey and questionnaire products are primarily recognized upon delivery of the service.

The majority of research contracts are billable upon signing, absent special terms granted on a limited basis from time to time. All research contracts are non-cancelable and non-refundable, except for government contracts that may have cancellation or fiscal funding clauses. It is our policy to record the amount of the contract that is billable as a fee receivable at the time the contract is signed with a corresponding amount as deferred revenue because the contract represents a legally enforceable claim.

The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers," on January 1, 2018. See Note 1 — Business and Significant Accounting Policies in the Notes to Consolidated Financial Statements for information regarding our adoption of this accounting standard and its impact on the Company's revenue recognition policies.

Uncollectible fees receivable — We maintain an allowance for losses that is comprised of a bad debt allowance and a sales reserve. Provisions are charged against earnings, either as a reduction in revenues or an increase to expense. The determination of the allowance for losses is based on historical loss experience, an assessment of current economic conditions, the aging of outstanding receivables, the financial health of specific clients and probable losses. This evaluation is inherently judgmental and requires estimates. The valuation reserves are periodically re-evaluated and adjusted as more information about the ultimate collectability of fees receivable becomes available. Circumstances that could cause our valuation reserves to increase include changes in our clients' liquidity and credit quality, other factors negatively impacting our clients' ability to pay their obligations as they come due and the effectiveness of our collection efforts.



The following table presents our total fees receivable and the related allowance for losses (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">December 31,</td></tr><tr><td>2017</td><td>2016</td><td></td></tr><tr><td>Total fees receivable</td><td>$ 1,189,543</td><td>$ 650,413</td><td></td></tr><tr><td>Allowance for losses</td><td>(12,700)</td><td>(7,400)</td><td></td></tr><tr><td>Fees receivable, net</td><td>$ 1,176,843</td><td>$ 643,013</td><td></td></tr></table>

Goodwill and other intangible assets — When we acquire a business, we determine the fair value of the assets acquired and liabilities assumed on the date of acquisition, which may include a significant amount of intangible assets such as customer relationships, software, content and other intangible assets, as well as resulting goodwill. When determining the fair values of the acquired intangible assets, we consider, among other factors, analyses of historical financial performance and an estimate of the future performance of the acquired business. The fair values of the acquired intangible assets are primarily calculated using an income approach that relies on discounted cash flows. This method starts with a forecast of the expected future net cash flows associated with the asset and then adjusts the forecast to present value by applying an appropriate discount rate that reflects the risk factors associated with the cash flow streams. We consider this approach to be the most appropriate valuation technique because the inherent value of the acquired intangible assets is their ability to generate future income. In a typical acquisition, we engage a third-party valuation expert to assist us with the fair value analyses for acquired intangible assets.

Determining the fair values of acquired intangible assets requires us to exercise significant judgment. We select reasonable estimates and assumptions based on evaluating a number of factors, including, but not limited to, marketplace participants, consumer awareness and brand history. Additionally, there are significant judgments inherent in discounted cash flows such as estimating the amount and timing of projected future cash flows, the selection of appropriate discount rates, hypothetical royalty rates and contributory asset capital charges. Specifically, the discount rates used in discounted cash flow analyses are intended to reflect the risk inherent in the projected future cash flows generated by the underlying acquired intangible assets.

Determining an acquired intangible asset's useful life requires significant judgment and is based on evaluating a number of factors, including, but not limited to, the expected use of the asset, historical client retention rates, consumer awareness and trade name history, as well as any contractual provisions that could limit or extend an asset's useful life.

The Company evaluates recorded goodwill in accordance with FASB Accounting Standards Codification ("ASC") Topic 350, which requires goodwill to be assessed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. In addition, an impairment evaluation of our amortizable intangible assets may also be performed if events or circumstances indicate potential impairment. Among the factors that could trigger an impairment review are our current operating results relative to our annual plan or historical performance; changes in our strategic plan or use of our assets; restructuring charges or other changes in our business segments; competitive pressures and changes in the general economy or in the markets in which we operate; and a significant decline in our stock price and our market capitalization relative to our net book value.

FASB ASC Topic 350 requires an annual assessment of the recoverability of recorded goodwill, which can be either quantitative or qualitative in nature, or a combination of the two approaches. Both methods utilize estimates which, in turn, require judgments and assumptions regarding future trends and events. As a result, both the precision and reliability of the resulting estimates are subject to uncertainty. If our goodwill impairment evaluation determines that the fair value of a reporting unit is less than its related carrying amount, we may recognize an impairment charge. Among the factors that we consider in a qualitative assessment are general economic conditions and the competitive environment; actual and projected reporting unit financial performance; forward-looking business measurements; and external market assessments. A quantitative analysis requires management to consider each of the factors relevant to a qualitative assessment, as well as the utilization of detailed financial projections, to include the rate of revenue growth, profitability and cash flows, as well as assumptions regarding discount rates, the Company's weighted average cost of capital and other data, in order to determine a fair value for our reporting units. We conducted a qualitative assessment of the fair value of all of the Company's reporting units during the quarter ended September 30, 2017. The results of this test determined that the fair values of the Company's reporting units continue to exceed their respective carrying values and as a result, no goodwill impairment was indicated. See Note 1 — Business and Significant Accounting Policies in the Notes to Consolidated Financial Statements for additional information regarding goodwill and amortizable intangible assets.

Accounting for income taxes — The Company uses the asset and liability method of accounting for income taxes. We estimate our income taxes in each of the jurisdictions where we operate. This process involves estimating our current tax expense together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets. In assessing the realizability of



deferred tax assets, we consider if it is more likely than not that some or all of the deferred tax assets will not be realized. In making this assessment, we consider the availability of loss carryforwards, projected reversals of deferred tax liabilities, projected future taxable income, and ongoing prudent and feasible tax planning strategies. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained based on the technical merits of the position.

Accounting for stock-based compensation — The Company accounts for stock-based compensation awards in accordance with FASB ASC Topics 505 and 718 and SEC Staff Accounting Bulletins No. 107 and No. 110. The Company recognizes stock-based compensation expense, which is based on the fair value of the award on the date of grant, over the related service period (see Note 8 — Stock-Based Compensation in the Notes to Consolidated Financial Statements for additional information). Determining the appropriate fair value model and calculating the fair value of stock-based compensation awards requires the use of certain complex and subjective assumptions, including the expected life of a stock-based compensation award and the Company’s common stock price volatility. In addition, determining the appropriate periodic stock-based compensation expense requires management to estimate the likelihood of the achievement of certain performance targets. The assumptions used in calculating the fair values of stock-based compensation awards and the related periodic expense represent management’s best estimates, which involve inherent uncertainties and the application of judgment. As a result, if circumstances change and the Company deems it necessary in the future to modify the assumptions it made or to use different assumptions, or if the quantity and nature of the Company’s stock-based compensation awards changes, then the amount of expense may need to be adjusted and future stock-based compensation expense could be materially different from what has been recorded in the current period.

Restructuring and other accruals — We may record accruals for severance costs, costs associated with excess facilities that we have leased, contract terminations, asset impairments and other costs as a result of ongoing actions we undertake to streamline our organization, reposition certain businesses and reduce ongoing costs. Estimates of costs to be incurred to complete these actions, such as future lease payments, sublease income, the fair value of assets, and severance and related benefits, are based on assumptions at the time the actions are initiated. These accruals may need to be adjusted to the extent actual costs differ from such estimates. In addition, these actions may be revised due to changes in business conditions that we did not foresee at the time such plans were approved. We also record accruals during the year for our various employee cash incentive programs. Amounts accrued at the end of each reporting period are based on our estimates and may require adjustment as the ultimate amount paid for these incentives are sometimes not known with certainty until the end of our fiscal year.



## RESULTS OF OPERATIONS

## Consolidated Results

## 2017 VERSUS 2016

The table below presents an analysis of selected line items and year-over-year changes in our Consolidated Statements of Operations for the two years ended December 31, 2017 (in thousands). The operating results of CEB are included beginning on April 5, 2017, the date of the acquisition.

<table><tr><td></td><td>Year Ended December 31, 2017</td><td>Year Ended December 31, 2016</td><td>Income Increase (Decrease)</td><td>Increase (Decrease) %</td></tr><tr><td>Total revenues</td><td>$ 3,311,494</td><td>$ 2,444,540</td><td>$ 866,954</td><td>35 %</td></tr><tr><td>Costs and expenses:</td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of services and product development</td><td>1,320,198</td><td>945,648</td><td>(374,550)</td><td>(40)</td></tr><tr><td>Selling, general and administrative</td><td>1,599,004</td><td>1,089,184</td><td>(509,820)</td><td>(47)</td></tr><tr><td>Depreciation</td><td>63,897</td><td>37,172</td><td>(26,725)</td><td>(72)</td></tr><tr><td>Amortization of intangibles</td><td>176,274</td><td>24,797</td><td>(151,477)</td><td>&gt;(100)</td></tr><tr><td>Acquisition and integration charges</td><td>158,450</td><td>42,598</td><td>(115,852)</td><td>&gt;(100)</td></tr><tr><td>Operating (loss) income</td><td>(6,329)</td><td>305,141</td><td>(311,470)</td><td>&gt;(100)</td></tr><tr><td>Interest expense, net</td><td>(124,936)</td><td>(25,116)</td><td>(99,820)</td><td>&gt;(100)</td></tr><tr><td>Other income, net</td><td>3,448</td><td>8,406</td><td>(4,958)</td><td>(59)</td></tr><tr><td>(Benefit) provision for income taxes</td><td>(131,096)</td><td>94,849</td><td>225,945</td><td>&gt;100</td></tr><tr><td>Net income</td><td>$ 3,279</td><td>$ 193,582</td><td>$ (190,303)</td><td>(98)%</td></tr></table>

TOTAL REVENUES for the year ended December 31, 2017 increased $867.0 million, to $3.3 billion, an increase of 35% compared to the year ended December 31, 2016 on both a reported basis and adjusted for foreign exchange impact. CEB contributed approximately $522.9 million of the revenue increase.

The table below presents total revenues by geographic region for the years indicated (in thousands):

<table><tr><td>Geographic Region</td><td>Year Ended December 31, 2017</td><td>Year Ended December 31, 2016</td><td>Increase (Decrease)</td><td>Increase (Decrease) %</td></tr><tr><td>U.S. and Canada</td><td>$ 2,037,111</td><td>$ 1,519,748</td><td>$ 517,363</td><td>34%</td></tr><tr><td>Europe, Middle East and Africa</td><td>850,352</td><td>616,721</td><td>233,631</td><td>38</td></tr><tr><td>Other International</td><td>424,031</td><td>308,071</td><td>115,960</td><td>38</td></tr><tr><td>Totals</td><td>$ 3,311,494</td><td>$ 2,444,540</td><td>$ 866,954</td><td>35%</td></tr></table>

The table below presents our revenues by segment for the years indicated (in thousands):

<table><tr><td>Segment</td><td>Year Ended December 31, 2017</td><td>Year Ended December 31, 2016</td><td>Increase (Decrease)</td><td>Increase (Decrease) %</td></tr><tr><td>Research</td><td>$ 2,471,280</td><td>$ 1,857,001</td><td>$ 614,279</td><td>33%</td></tr><tr><td>Consulting</td><td>327,661</td><td>318,934</td><td>8,727</td><td>3</td></tr><tr><td>Events</td><td>337,903</td><td>268,605</td><td>69,298</td><td>26</td></tr><tr><td>Talent Assessment &amp; Other</td><td>174,650</td><td>—</td><td>174,650</td><td>100</td></tr><tr><td>Totals</td><td>$ 3,311,494</td><td>$ 2,444,540</td><td>$ 866,954</td><td>35%</td></tr></table>

Please refer to the section of this MD&A below entitled “Segment Results” for a discussion of revenues and results by segment.



COST OF SERVICES AND PRODUCT DEVELOPMENT was $1.3 billion in 2017, an increase of $374.6 million compared to 2016, or 40% on both a reported basis and excluding the impact of foreign exchange. Approximately $238.0 million of the increase was attributable to CEB. The $136.6 million increase attributable to heritage Gartner was primarily due to higher payroll and related benefits costs resulting from increased headcount, which increased 20%. Cost of services and product development as a percentage of revenues was 40% and 39% for 2017 and 2016, respectively.

SELLING, GENERAL AND ADMINISTRATIVE (“SG&A”) expense was $1.6 billion in 2017, an increase of $509.8 million compared to 2016, or 47% on both a reported basis and excluding the impact of foreign exchange. Approximately $283.8 million of the increase was attributable to CEB. Heritage Gartner SG&A costs for 2017 increased $226.0 million, primarily due to $107.4 million in higher payroll and related benefits costs, reflecting a 17% overall headcount increase; $33.8 million in higher commissions due to increased sales bookings; and $84.8 million in higher corporate costs and foreign exchange impact. The overall headcount growth includes a 16% increase in quota-bearing sales associates, which increased to 2,807 at December 31, 2017 from 2,423 at December 31, 2016.

DEPRECIATION increased $26.7 million during 2017 when compared to 2016, due to property, equipment and leasehold improvements acquired with CEB and additional heritage Gartner investment.

AMORTIZATION OF INTANGIBLES increased $151.5 million during 2017 when compared to 2016 due to additional amortization from the intangibles recorded in connection with our recent acquisitions.

ACQUISITION AND INTEGRATION CHARGES increased $115.9 million during 2017 when compared to 2016. This increase reflects the additional charges resulting from our recent acquisitions and primarily consist of higher professional fees, severance, stock-based compensation charges and accruals for exit costs for certain office space that the Company does not intend to occupy in Arlington, Virginia.

OPERATING (LOSS) INCOME was an operating loss of $(6.3) million during 2017 compared to operating income of $305.1 million in 2016. The decline reflects several factors. We had a lower segment contribution margin in our Research business resulting from a CEB deferred revenue fair value adjustment. We also had higher SG&A and acquisition-related costs, including depreciation, amortization of intangibles, and acquisition and integration charges.

INTEREST EXPENSE, NET increased $99.8 million during 2017 when compared to 2016. The increase was primarily due to higher borrowings during 2017.

OTHER INCOME, NET was $3.4 million during 2017, primarily reflecting the net impact of foreign currency gains and losses from our hedging activities, as well as the sale of certain state tax credits and the recognition of other tax incentives. Other income, net was $8.4 million in 2016, which included a gain of $2.5 million from the extinguishment of a portion of an economic development loan from the State of Connecticut, the sale of certain state tax credits and the recognition of other tax incentives, and the net impact of gains and losses from our foreign currency hedging activities.

(BENEFIT) PROVISION FOR INCOME TAXES in 2017 was a benefit of $(131.1) million on a pretax loss of $(127.8) million compared to an expense of $94.8 million on pretax income of $288.4 million in 2016. The effective income tax rate was 102.6% in 2017 compared to 32.9% in 2016. The change in the effective income tax rate was primarily attributable to the favorable impact of U.S. tax reform, the recognition in 2017 of unrealized capital losses on the planned divestiture of the Talent Assessment business, and increases in tax benefits associated with equity compensation.

NET INCOME was $3.3 million and $193.6 million during 2017 and 2016, respectively. The year-over-year change primarily reflects declines in our operating profitability and higher interest expense, partially offset by income tax benefits in 2017, including the impact of the Tax Cuts and Jobs Act of 2017. As a result of substantially lower net income and a 7% increase in the number of weighted average shares outstanding, diluted earnings per share declined to $0.04 in 2017 from $2.31 in 2016.



The table below presents an analysis of selected line items and year-over-year changes in our Consolidated Statements of Operations for the two years ended December 31, 2016 (in thousands).

<table><tr><td></td><td>Year Ended December 31, 2016</td><td>Year Ended December 31, 2015</td><td>Income Increase (Decrease) \(</td><td>Increase (Decrease) %</td></tr><tr><td>Total revenues</td><td>$ 2,444,540</td><td>$ 2,163,056</td><td>$ 281,484</td><td>13%</td></tr><tr><td>Costs and expenses:</td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of services and product development</td><td>945,648</td><td>839,076</td><td>(106,572)</td><td>(13)</td></tr><tr><td>Selling, general and administrative</td><td>1,089,184</td><td>962,677</td><td>(126,507)</td><td>(13)</td></tr><tr><td>Depreciation</td><td>37,172</td><td>33,789</td><td>(3,383)</td><td>(10)</td></tr><tr><td>Amortization of intangibles</td><td>24,797</td><td>13,342</td><td>(11,455)</td><td>(86)</td></tr><tr><td>Acquisition and integration charges</td><td>42,598</td><td>26,175</td><td>(16,423)</td><td>(63)</td></tr><tr><td>Operating income</td><td>305,141</td><td>287,997</td><td>17,144</td><td>6</td></tr><tr><td>Interest expense, net</td><td>(25,116)</td><td>(20,782)</td><td>(4,334)</td><td>(21)</td></tr><tr><td>Other income, net</td><td>8,406</td><td>4,996</td><td>3,410</td><td>68</td></tr><tr><td>(Benefit) provision for income taxes</td><td>94,849</td><td>96,576</td><td>1,727</td><td>2</td></tr><tr><td>Net income</td><td>$ 193,582</td><td>$ 175,635</td><td>$ 17,947</td><td>10%</td></tr></table>

TOTAL REVENUES for the year ended December 31, 2016 increased $281.5 million, to $2.4 billion, an increase of 13% compared to the year ended December 31, 2015 and 14% adjusted for the impact of foreign currency exchange.

The table below presents total revenues by geographic region for the years indicated (in thousands):

<table><tr><td></td><td>Year Ended December 31, 2016</td><td>Year Ended December 31, 2015</td><td>Increase (Decrease)</td><td>Increase (Decrease) %</td></tr><tr><td>Geographic Region</td><td>$ 1,519,748</td><td>$ 1,347,676</td><td>$ 172,072</td><td>13%</td></tr><tr><td>U.S. and Canada</td><td>$ 616,721</td><td>$ 557,165</td><td>$ 59,556</td><td>$ 11</td></tr><tr><td>Europe, Middle East and Africa</td><td>$ 308,071</td><td>$ 258,215</td><td>$ 49,856</td><td>$ 19</td></tr><tr><td>Other International</td><td>$ 2,444,540</td><td>$ 2,163,056</td><td>$ 281,484</td><td>$ 13%</td></tr><tr><td>Totals</td><td>$ 2,444,540</td><td>$ 2,163,056</td><td>$ 281,484</td><td>$ 13%</td></tr></table>

The table below presents our revenues by segment for the years indicated (in thousands):

<table><tr><td></td><td>Year Ended December 31, 2016</td><td>Year Ended December 31, 2015</td><td>Increase (Decrease)</td><td>Increase (Decrease) %</td></tr><tr><td>Research</td><td>$ 1,857,001</td><td>$ 1,614,904</td><td>$ 242,097</td><td>15%</td></tr><tr><td>Consulting</td><td>318,934</td><td>296,317</td><td>22,617</td><td>8</td></tr><tr><td>Events</td><td>268,605</td><td>251,835</td><td>16,770</td><td>7</td></tr><tr><td>Totals</td><td>$ 2,444,540</td><td>$ 2,163,056</td><td>$ 281,484</td><td>13%</td></tr></table>

Please refer to the section of this MD&A below entitled “Segment Results” for a discussion of revenues and results by segment.

COST OF SERVICES AND PRODUCT DEVELOPMENT (“COS”) increased $106.6 million, or 13%, in 2016 compared to 2015, to $945.6 million compared to $839.1 million in 2015. COS increased 14% in 2016 when compared to 2015 adjusted for the impact of foreign exchange. The year-over-year increase in COS was due to $88.0 million in higher payroll and related benefits costs from additional headcount and merit salary increases, and $28.6 million in higher charges in 2016 for events costs and other program related expenses. Partially offsetting these increased expenses was approximately $10.0 million in foreign exchange impact. Overall COS headcount increased 13%, which was primarily in our Research segment. COS as a percentage of revenues was 39% in both 2016 and 2015.



SELLING, GENERAL AND ADMINISTRATIVE (“SG&A”) expense increased by $126.5 million in 2016, or 13%, to $1,089.2 million compared to $962.7 million in 2015. Excluding the impact of foreign currency exchange, SG&A expense increased 15% year-over-year. The increase was primarily due to $115.0 million in higher payroll and related benefits costs from additional headcount, higher sales commissions, and merit salary increases, and we also had $27.5 million in additional legal, recruiting and training, and workplace costs. Partially offsetting these additional charges was approximately $16.0 million in foreign exchange impact. SG&A headcount increased 13% overall, with the majority of the increase in additional quota-bearing sales associates and related support staff. Quota-bearing sales associates increased 12% year-over-year, to 2,423 at December 31, 2016 from 2,171 at December 31, 2015.

DEPRECIATION increased 10% in 2016 compared to 2015, which reflects our additional investment in fixed assets.

AMORTIZATION OF INTANGIBLES increased to $24.8 million in 2016 from $13.3 million in 2015 due to the additional intangibles resulting from our acquisitions.

ACQUISITION AND INTEGRATION CHARGES were $42.6 million in 2016 compared to $26.2 million in 2015. These charges are directly related to our acquisitions and primarily include amounts accrued for payments contingent on the achievement of certain employment conditions, legal, consulting and severance costs.

OPERATING INCOME increased 6% in 2016 compared to 2015, to $305.1 million in 2016 from $288.0 million in 2015. Operating income as a percentage of revenues was 12% in 2016 and 13% in 2015 with the decline due to a number of factors, to include lower gross contribution margins in our Consulting and Events segments and higher charges from acquisitions.

INTEREST EXPENSE, NET increased 21% year-over-year due to higher average borrowings in 2016.

OTHER INCOME, NET was $8.4 million in 2016, which included a gain of $2.5 million from the extinguishment of a portion of an economic development loan from the State of Connecticut, the sale of certain state tax credits and the recognition of other tax incentives, and the net impact of gains and losses from our foreign currency hedging activities. Other income, net was $5.0 million in 2015, which consisted of a $6.8 million gain from the sale of certain state tax credits, partially offset by a net loss from foreign currency hedging activities.

(BENEFIT) PROVISION FOR INCOME TAXES was $94.8 million in 2016 compared to $96.6 million in 2015 and the effective tax rate was 32.9% in 2016 compared to 35.5% in 2015. The decrease in the 2016 effective income tax rate was primarily attributable to the early adoption of FASB ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting," partially offset by increases in non-deductible expenses relating to acquisitions.

NET INCOME was $193.6 million in 2016 and $175.6 million in 2015, an increase of 10%. Diluted earnings per share increased 12% year-over-year, to $2.31 in 2016 compared to $2.06 in 2015 due to higher net income and, to a lesser extent, a decrease in the number of weighted average shares outstanding in 2016.



## SEGMENT RESULTS

We evaluate reportable segment performance and allocate resources based on gross contribution margin. Gross contribution is defined as operating income (loss), excluding certain Cost of services and product development charges, SG&A expenses, Depreciation, Acquisition and integration charges, and Amortization of intangibles. Gross contribution margin is defined as gross contribution as a percentage of revenues.

On April 5, 2017, Gartner completed its acquisition of CEB. With the CEB acquisition, Gartner began reporting four business segments reflecting the Company’s enlarged scale and breadth of advisory services. The Company’s reportable segments are as follows:

- Research provides trusted, objective insights and advice on the mission-critical priorities of leaders across all functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to our analysts, peer networking services and membership programs that enable our clients to make better decisions. Gartner's traditional strengths in IT, marketing and supply chain research were enhanced in 2017 with Gartner's acquisition of CEB, Inc., which added CEB's best practice and talent management research insights across a range of business functions, to include human resources, sales, legal and finance.

• Consulting provides customized solutions to unique client needs through on-site, day-to-day support, as well as proprietary tools for measuring and improving IT performance with a focus on cost, performance, efficiency and quality.

- Events provides business professionals across the organization the opportunity to learn, share and network. From our flagship CIO event Gartner Symposium/ITxpo, to industry-leading conferences focused on specific business roles and topics, to member-driven sessions, our events enable attendees to experience the best of Gartner insight and advice live.

- Talent Assessment & Other helps organizations assess, engage, manage and improve talent. This is accomplished through knowledge and skills assessments, training programs, workshops, and survey and questionnaire services.

The sections below present the results of these four reportable business segments. References to "heritage Gartner" operating results and business measurements below refer to Gartner excluding CEB. References to "CEB" operating results and business measurements below refer to CEB subsequent to the acquisition.

## Research

<table><tr><td></td><td>As Of And For The Year Ended December 31, 2017</td><td>As Of And For The Year Ended December 31, 2016</td><td>Increase (Decrease)</td><td>Percentage Increase (Decrease)</td><td>As Of And For The Year Ended December 31, 2016</td><td>As Of And For The Year Ended December 31, 2015</td><td>Increase (Decrease)</td><td>Percentage Increase (Decrease)</td></tr><tr><td>Financial Measurements:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues (1), (2)</td><td>$2,471,280</td><td>$1,857,001</td><td>$ 614,279</td><td>33%</td><td>$1,857,001</td><td>$1,614,904</td><td>$ 242,097</td><td>15%</td></tr><tr><td>Gross contribution (1)</td><td>$1,653,014</td><td>$1,285,611</td><td>$ 367,403</td><td>29%</td><td>$1,285,611</td><td>$1,117,534</td><td>$ 168,077</td><td>15%</td></tr><tr><td>Gross contribution margin</td><td>67%</td><td>69%</td><td>(2) points</td><td>—</td><td>69%</td><td>69%</td><td>—</td><td>—</td></tr><tr><td>Business Measurements:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Heritage Gartner:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>

(1) Dollars in thousands.

(2) In 2017 the Company began reporting the results of its Strategic Advisory Services ("SAS") business in Research whereas previously the SAS business was reported with Consulting. Although the impact of the reclassification was not significant,



the operating results of the SAS business for 2016 and 2015 were reclassified from Consulting to Research to be comparable with the current year presentation.

(3) The 2016 CEB contract value was calculated using Gartner's methodology as well as 2017 foreign exchange rates. na - not applicable or not available.

## 2017 VERSUS 2016

Research segment revenues increased $614.3 million on a reported basis during 2017 compared to 2016, or 33% on both a reported basis and adjusted for the impact of foreign currency exchange. Heritage Gartner revenues increased $304.7 million in 2017 compared to 2016, which represents a 16% increase on a reported basis, with approximately one point of the increase due to L2, which we acquired in the first quarter of 2017. Adjusted for the foreign exchange impact, heritage Gartner revenues also increased by 16% year-over-year. On a reported basis, CEB contributed $309.6 million of the 2017 increase in Research segment revenues. The gross contribution margin declined by two points during 2017, primarily due to the impact of the deferred revenue fair value accounting adjustment resulting from the CEB acquisition.

Heritage Gartner total contract value was $2.2 billion at December 31, 2017, an increase of 15% as reported and 16% on a foreign exchange neutral basis compared to December 31, 2016. Heritage Gartner client retention was 84% as of both December 31, 2017 and 2016, while wallet retention was 106% and 104% at December 31, 2017 and 2016, respectively. Heritage Gartner total contract value at December 31, 2017 increased by double-digits across all of the Company’s sales regions and client sizes and virtually every industry segment compared to December 31, 2016. We increased the number of our research client enterprises by 7% in 2017. As of December 31, 2017, CEB contract value was $557.0 million and wallet retention was 96%.

## 2016 VERSUS 2015

Research segment revenues increased 15% in 2016 compared to 2015. Excluding the impact of foreign currency exchange, Research revenues increased approximately 17% in 2016. The segment gross contribution margin was 69% in both annual periods. The contribution margin remained at 69% in 2016 despite a 14% increase in segment headcount, which was mostly driven by new hires and, to a lesser extent, the additional employees resulting from our acquisitions. The headcount increase reflects our continued investment in this business. Total contract value increased 9% on a reported basis in 2016 to $1.9 billion, and increased 14% year-over-year adjusted for the impact of foreign currency exchange. The growth in contract value was broad-based, with every region and client size and virtually every industry sector growing at double-digit percentage rates. We increased the number of our research client enterprises by 3% in 2016 to 11,122. Both client retention and wallet retention remained strong at 84% and 104%, respectively, as of December 31, 2016.



<table><tr><td></td><td>As Of And For The Year Ended December 31, 2017</td><td>As Of And For The Year Ended December 31, 2016</td><td>Increase (Decrease)</td><td>Percentage Increase (Decrease)</td><td>As Of And For The Year Ended December 31, 2016</td><td>As Of And For The Year Ended December 31, 2015</td><td>Increase (Decrease)</td><td>Percentage Increase (Decrease)</td></tr><tr><td colspan="9">Financial Measurements:</td></tr><tr><td>Revenues (1), (2)</td><td>$327,661</td><td>$318,934</td><td>$ 8,727</td><td>3 %</td><td>$318,934</td><td>$296,317</td><td>$ 22,617</td><td>8 %</td></tr><tr><td>Gross contribution (1)</td><td>$93,643</td><td>$89,734</td><td>$ 3,909</td><td>4 %</td><td>$89,734</td><td>$86,486</td><td>$ 3,248</td><td>4 %</td></tr><tr><td>Gross contribution margin</td><td>29%</td><td>28%</td><td>1 point</td><td>—</td><td>28%</td><td>29%</td><td>(1) point</td><td>—</td></tr><tr><td colspan="9">Business Measurements:</td></tr><tr><td>Backlog (1) (3)</td><td>$95,200</td><td>$88,600</td><td>$ 6,600</td><td>7 %</td><td>$88,600</td><td>$100,800</td><td>$ (12,200)</td><td>(12)%</td></tr><tr><td>Billable headcount</td><td>669</td><td>628</td><td>41</td><td>7 %</td><td>628</td><td>606</td><td>22</td><td>4 %</td></tr><tr><td>Consultant utilization</td><td>64%</td><td>66%</td><td>(2) points</td><td>—</td><td>66%</td><td>66%</td><td>—</td><td>—</td></tr><tr><td>Average annualized revenue per billable headcount (1)</td><td>$ 366</td><td>$ 383</td><td>$ (17)</td><td>(4)%</td><td>$ 383</td><td>$ 391</td><td>$ (8)</td><td>(2)%</td></tr></table>

(1) Dollars in thousands.

(2) In 2017 the Company began reporting the results of its SAS business in Research whereas previously the SAS business was reported with Consulting. Although the impact of the reclassification was not significant, the operating results of the SAS business for 2016 and 2015 were reclassified from Consulting to Research to be comparable with the current year presentation.

(3) The heritage Gartner backlog of $88.6 million and $100.8 million at December 31, 2016 and 2015, respectively, have been restated to reflect the reclassification of the SAS business.

## 2017 VERSUS 2016

Consulting revenues increased 3% during 2017 compared to 2016 on both a reported basis and adjusted for the impact of foreign currency exchange, with revenue improvements in both core consulting and contract optimization. Gross contribution margin was 29% and 28% for 2017 and 2016, respectively. The margin improvement in 2017 was primarily due to additional contract optimization revenue, which has a higher contribution margin than our labor-based core consulting, partially offset by lower consultant utilization and our investment in additional managing partners. Backlog increased by $6.6 million, or 7%, year-over-year. The $95.2 million of backlog at December 31, 2017 represented approximately four months of backlog, which is in line with the Company's operational target.

## 2016 VERSUS 2015

Consulting revenue increased 8% year-over-year to $318.9 million, with the increase mostly in our core consulting practice. Additionally, revenue in our contract optimization practice increased slightly during 2016 compared to 2015. The impact of foreign currency exchange was not significant. The year-over-year gross contribution margin declined by one point due to several factors, including higher payroll costs resulting from higher headcount and severance. Backlog decreased by $12.2 million year-over-year, or 12%, mostly due to a large individual contract booked in 2015. Excluding that contract, backlog decreased approximately 3% year-over-year. The $88.6 million of backlog at December 31, 2016 represented approximately four months of forward backlog, which is in line with the Company's operational target.



<table><tr><td></td><td>As Of And For The Year Ended December 31, 2017</td><td>As Of And For The Year Ended December 31, 2016</td><td>Increase (Decrease)</td><td>Percentage Increase (Decrease)</td><td>As Of And For The Year Ended December 31, 2016</td><td>As Of And For The Year Ended December 31, 2015</td><td>Increase (Decrease)</td><td>Percentage Increase (Decrease)</td></tr><tr><td colspan="9">Financial Measurements:</td></tr><tr><td>Revenues (1)</td><td>$337,903</td><td>$268,605</td><td>$ 69,298</td><td>26 %</td><td>$268,605</td><td>$251,835</td><td>$ 16,770</td><td>7%</td></tr><tr><td>Gross contribution (1)</td><td>$163,480</td><td>$136,655</td><td>$ 26,825</td><td>20 %</td><td>$136,655</td><td>$130,527</td><td>$ 6,128</td><td>5%</td></tr><tr><td>Gross contribution margin</td><td>48%</td><td>51%</td><td>(3) points</td><td>—</td><td>51%</td><td>52%</td><td>(1) point</td><td>—</td></tr><tr><td colspan="9">Business Measurements:</td></tr><tr><td colspan="9">Heritage Gartner:</td></tr><tr><td>Number of events (2)</td><td>65</td><td>66</td><td>(1)</td><td>(2)%</td><td>66</td><td>65</td><td>1</td><td>2%</td></tr><tr><td>Number of attendees (2)</td><td>63,823</td><td>54,602</td><td>9,221</td><td>17 %</td><td>54,602</td><td>52,595</td><td>2,007</td><td>4%</td></tr><tr><td colspan="9">CEB:</td></tr><tr><td>Number of events (2)</td><td>4</td><td>na</td><td>—</td><td>—</td><td>na</td><td>na</td><td>—</td><td>—</td></tr><tr><td>Number of attendees (2)</td><td>3,578</td><td>na</td><td>—</td><td>—</td><td>na</td><td>na</td><td>—</td><td>—</td></tr></table>

(1) Dollars in thousands.

(2) Single day, local events are excluded.

na - not applicable or not available.

## 2017 VERSUS 2016

Events revenues increased $69.3 million, or 26%, during 2017 compared to 2016 on a reported basis and 25% adjusted for the impact of foreign currency exchange. Heritage Gartner revenues increased $30.7 million in 2017 compared to 2016, an 11% increase on a reported basis and 10% adjusted for the foreign exchange impact, as both attendee and exhibitor increased, with attendee revenue growing at double-digits. We held 65 events in 2017 in the heritage Gartner business, with a 17% increase in the number of attendees and a 3% increase in exhibitors compared to 2016, while the average revenue per exhibitor was up by 5% and average revenue per attendee was flat. CEB contributed $38.6 million of the revenue increase with four events held with 3,578 attendees. The segment gross contribution margin declined 3 points in 2017 compared to 2016, primarily driven by additional investment in headcount and higher program expenses in heritage Gartner, and to a lesser extent, a dilutive effect from the CEB events.

## 2016 VERSUS 2015

Events revenues increased $16.8 million, or 7%, when comparing 2016 to 2015. Excluding the impact of foreign currency exchange, revenues increased 6% year-over-year. We held 66 events in 2016, consisting of 59 ongoing events and 7 new events, compared to 65 events in 2015. The year-over-year revenue increase was primarily attributable to higher exhibitor revenue at our on-going events, which increased 9%, while attendee revenue increased 2%. The number of attendees in 2016 increased 4% to 54,602. Average revenue per attendee declined slightly while average revenue per exhibitor increased 9%. The gross contribution margin decreased one point year-over-year.



<table><tr><td></td><td>As Of And For The Year Ended December 31, 2017</td></tr><tr><td>Financial Measurements:</td><td></td></tr><tr><td>Revenues (1)</td><td>$ 174,650</td></tr><tr><td>Gross contribution (1)</td><td>$ 90,249</td></tr><tr><td>Gross contribution margin</td><td>52%</td></tr></table>

(1) Dollars in thousands.

See Note 2 — Acquisitions and Divestiture and Note 16 — Subsequent Events in the Notes to Consolidated Financial Statements for information concerning the pending disposal of a significant component of this reportable segment.



## LIQUIDITY AND CAPITAL RESOURCES

We finance our operations through cash generated from our operating activities and borrowings (Note 5 — Debt in the Notes to the Consolidated Financial Statements provides additional information regarding the Company's 2016 Credit Agreement and other outstanding debt obligations). At December 31, 2017, we had $538.9 million of cash and cash equivalents and $558.0 million of available borrowing capacity on the revolving credit facility portion of our 2016 Credit Agreement. We believe that the Company has adequate liquidity to meet its currently anticipated needs, to include the payment of the transition tax liability related to the Tax Cuts and Jobs Act of 2017. Note 10 — Income Taxes in the Notes to the Consolidated Financial Statements provides information related to the Tax Cuts and Jobs Act of 2017.

We have historically generated significant cash flows from our operating activities. Our operating cash flow has been continuously maintained and enhanced by the leverage characteristics of our subscription-based business model in our Research segment, which is our largest business segment. Revenues in our Research segment increased 33% in 2017 compared to 2016, and constituted 75% of our total revenues in both 2017 and 2016. The majority of our Research customer contracts are paid in advance, and combined with a strong customer retention rate and high incremental margins, has resulted in continuously strong operating cash flow. Our cash flow generation has also benefited from our continuing efforts to improve the operating efficiencies of our businesses as well as a focus on the optimal management of our working capital as we increase our sales volume.

As of December 31, 2017, we had approximately $194.0 million of accumulated undistributed earnings in our non-U.S. subsidiaries. Our cash and cash equivalents are held in numerous locations throughout the world. At December 31, 2017, 97% of our cash and cash equivalents was held overseas, with a substantial portion representing accumulated undistributed earnings of our non-U.S. subsidiaries. The Company intends to continue to reinvest substantially all of its accumulated undistributed foreign earnings, except in instances in which the repatriation would result in minimal additional tax. As a result of the recently enacted U.S. Tax Cuts and Jobs Act of 2017, we envision that the income tax that would be payable if such earnings were repatriated would be minimal.

The following table summarizes and explains the significant changes in our cash and cash equivalents for the three-years ended December 31, 2017 (in thousands):

<table><tr><td rowspan="2"></td><td colspan="3">2017 vs. 2016</td><td colspan="3">2016 vs. 2015</td></tr><tr><td>Year Ended December 31, 2017</td><td>Year Ended December 31, 2016</td><td>Increase (Decrease)</td><td>Year Ended December 31, 2016</td><td>Year Ended December 31, 2015</td><td>Increase (Decrease)</td></tr><tr><td>Cash provided by operating activities</td><td>$ 254,517</td><td>$ 365,632</td><td>$ (111,115)</td><td>$ 365,632</td><td>$ 345,561</td><td>$ 20,071</td></tr><tr><td>Cash used in investing activities</td><td>(2,745,574)</td><td>(84,049)</td><td>(2,661,525)</td><td>(84,049)</td><td>(242,357)</td><td>158,308</td></tr><tr><td>Cash provided by (used in) financing activities</td><td>2,539,830</td><td>(174,686)</td><td>2,714,516</td><td>(174,686)</td><td>(67,690)</td><td>(106,996)</td></tr><tr><td>Net increase (decrease) in cash and cash equivalents</td><td>48,773</td><td>106,897</td><td>(58,124)</td><td>106,897</td><td>35,514</td><td>71,383</td></tr><tr><td>Effects of exchange rate changes</td><td>25,902</td><td>(5,640)</td><td>31,542</td><td>(5,640)</td><td>(27,840)</td><td>22,200</td></tr><tr><td>Beginning cash and cash equivalents</td><td>474,233</td><td>372,976</td><td>101,257</td><td>372,976</td><td>365,302</td><td>7,674</td></tr><tr><td>Ending cash and cash equivalents (1)</td><td>$ 548,908</td><td>$ 474,233</td><td>$ 74,675</td><td>$ 474,233</td><td>$ 372,976</td><td>$ 101,257</td></tr></table>

(1) As of December 31, 2017, the Company had $538.9 million of cash and cash equivalents and an additional $10.0 million of cash classified as held-for-sale in its Consolidated Balance Sheet, for an ending cash and cash equivalents balance of $548.9 million.



## Operating

Cash provided by operating activities was $254.5 million in 2017 compared to $365.6 million in 2016. The decline was due to (i) a decline in net income, which was $3.3 million in the 2017 period compared to $193.6 million in the 2016 period; (ii) unfavorable changes in working capital in 2017 compared to 2016; and (iii) substantially higher cash payments for bonuses, commissions, interest on our borrowings, and acquisition and integration costs in the 2017 period compared to 2016.

## Investing

Cash used in investing activities was $2.7 billion in 2017 compared to $84.0 million of cash used in 2016. Cash used in 2017 was substantially higher primarily due to the acquisitions of CEB and L2 in April 2017 and March 2017, respectively. Note 2 — Acquisitions and Divestiture in the Notes to the Consolidated Financial Statements provides additional information regarding the Company's acquisitions. We also made additional investment in capital expenditures in 2017, with $110.8 million invested in 2017 compared to $49.9 million in 2016.

## Financing

Cash provided by financing activities was $2.5 billion in 2017 compared to cash used of $174.7 million in 2016. During the 2017 period, the Company borrowed a total of approximately $3.0 billion and paid: (i) $404.4 million in principal repayments, including $300.0 million for the senior unsecured 364-day Bridge Credit Facility; (ii) $51.2 million for deferred financing fees on borrowings; and (iii) $41.3 million for share repurchases. During the 2016 period, the Company used $59.0 million in cash for share repurchases and $125.0 million for debt.

## 2016 VERSUS 2015

## Operating

Operating cash flow increased by $20.1 million, or 6%, in 2016 compared to 2015. The 2016 increase was primarily due to higher net income and the adoption of ASU No. 2016-09. Partially offsetting these increases were higher cash payments for acquisition and integration costs, bonus and commissions, and interest on our borrowings.

## Investing

We used $84.0 million of cash in our investing activities in 2016 compared to $242.4 million of cash used in 2015. Cash used in 2015 was substantially higher due to additional expenditures for acquisitions.

## Financing

Cash used was $174.7 million in 2016, which consisted of $59.0 million paid for share repurchases and $125.0 million for payments and fees on debt, which was partially offset by $9.3 million in cash realized from employee share-related activities. In the 2015 period the Company used $67.7 million in cash in its financing activities, with $509.0 million in cash used for share repurchases, while net borrowings on debt and employee share-related activities provided cash of $441.3 million.



## OBLIGATIONS AND COMMITMENTS

## Debt

As of December 31, 2017, the Company had $3.3 billion of principal amount of debt outstanding. Note 5 — Debt in the Notes to the Consolidated Financial Statements provides additional information regarding the Company's debt obligations.

## Off-Balance Sheet Arrangements

Through December 31, 2017, we have not entered into any material off-balance sheet arrangements or transactions with unconsolidated entities or other persons.

## Contractual Cash Commitments

The Company has certain commitments that contractually require future cash payments. The table below summarizes the Company's contractual cash commitments as of December 31, 2017 (in thousands):

<table><tr><td>Commitment Description:</td><td>Due In Less Than 1 Year</td><td>Due In 2-3 Years</td><td>Due In 4-5 Years</td><td>Due In More Than 5 Years</td><td>Total</td></tr><tr><td>Debt - principal and interest (1)</td><td>$ 469,392</td><td>$ 492,579</td><td>$ 1,691,395</td><td>$ 1,396,750</td><td>$ 4,050,116</td></tr><tr><td>Operating leases (2)</td><td>129,570</td><td>235,155</td><td>203,596</td><td>727,405</td><td>1,295,726</td></tr><tr><td>Deferred compensation arrangements (3)</td><td>27,821</td><td>13,968</td><td>9,296</td><td>46,798</td><td>97,883</td></tr><tr><td>Tax Cuts and Job Act - transition tax (4)</td><td>3,066</td><td>6,132</td><td>6,132</td><td>23,010</td><td>38,340</td></tr><tr><td>Other (5)</td><td>18,980</td><td>37,083</td><td>17,987</td><td>32,706</td><td>106,756</td></tr><tr><td>Totals</td><td>$ 648,829</td><td>$ 784,917</td><td>$ 1,928,406</td><td>$ 2,226,669</td><td>$ 5,588,821</td></tr></table>

(1) Principal repayments of the Company's debt obligations are classified in the table based on the contractual repayment dates. However, the Due In Less Than 1 Year category includes a $255.0 million revolver principal payment the Company made in January 2018 which was not contractually due until 2022 (Due In 4-5 Years). Interest payments due were based on the effective interest rates as of December 31, 2017. Note 5 — Debt in the Notes to the Consolidated Financial Statements provides information regarding the Company's debt obligations.

(2) The Company leases various facilities, furniture, computer equipment, automobiles, and equipment under non-cancelable operating lease agreements expiring between 2018 and 2032. See Note 1 — Business and Significant Accounting Policies in the Notes to the Consolidated Financial Statements for additional information on the Company's leases. The total commitment excludes approximately $284.0 million of estimated income from the subleasing of certain facilities.

(3) The Company has supplemental deferred compensation arrangements with certain of its employees. Amounts payable with known payment dates have been classified in the above table based on those scheduled payment dates. Amounts payable whose payment dates are unknown have been included in the Due In More Than 5 Years category since the Company cannot determine when the amounts will be paid. See Note 13 — Employee Benefits in the Notes to the Consolidated Financial Statements for additional information regarding the arrangement.

(4) The amount due represents the Company's provisional estimate of the one-time transition tax liability under the Tax Cut and Jobs Act of 2017. The Company currently expects to pay the transition tax over approximately eight years.

(5) The Other category includes (i) contractual commitments for software, building maintenance, telecom, and other services; and (ii) projected cash contributions to the Company's defined benefit pension plans. See Note 13 — Employee Benefits in the Notes to the Consolidated Financial Statements for additional information regarding the Company's defined benefit pension plans.

In addition to the contractual cash commitments included in the table above, the Company has other payables and liabilities that may be legally enforceable but are not considered contractual commitments. Information regarding the Company's payables and liabilities is included in Note 4 — Accounts Payable, Accrued, and Other Liabilities in the Notes to the Consolidated Financial Statements.



## QUARTERLY FINANCIAL DATA

The following tables present our quarterly operating results for the two-year period ended December 31:

## 2017

<table><tr><td>(In thousands, except per share data)</td><td>First</td><td colspan="2">Second</td><td>Third</td><td>Fourth</td></tr><tr><td>Revenues</td><td>$ 625,169</td><td>$ 843,731</td><td>$ 828,085</td><td>$ 1,014,509</td><td></td></tr><tr><td>Operating income (loss)</td><td>53,514</td><td>(98,388)</td><td>(24,349)</td><td>62,894</td><td></td></tr><tr><td>Net income (loss) (1)</td><td>36,433</td><td>(92,281)</td><td>(48,180)</td><td>107,307</td><td></td></tr><tr><td>Net income (loss) per share (1), (2):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$ 0.44</td><td>$ (1.03)</td><td>$ (0.53)</td><td>$ 1.18</td><td></td></tr><tr><td>Diluted</td><td>$ 0.43</td><td>$ (1.03)</td><td>$ (0.53)</td><td>$ 1.16</td><td></td></tr></table>

## 2016

<table><tr><td>(In thousands, except per share data)</td><td>First</td><td colspan="2">Second</td><td>Third</td><td>Fourth</td></tr><tr><td>Revenues</td><td>$ 557,266</td><td>$ 609,998</td><td>$ 574,059</td><td>$ 703,217</td><td></td></tr><tr><td>Operating income</td><td>64,429</td><td>83,299</td><td>48,726</td><td>108,687</td><td></td></tr><tr><td>Net income</td><td>44,987</td><td>51,626</td><td>30,484</td><td>66,485</td><td></td></tr><tr><td>Net income per share (2)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$ 0.55</td><td>$ 0.63</td><td>$ 0.37</td><td>$ 0.80</td><td></td></tr><tr><td>Diluted</td><td>$ 0.54</td><td>$ 0.62</td><td>$ 0.36</td><td>$ 0.79</td><td></td></tr></table>

(1) In December 2017 the Company recorded a $59.6 million one-time tax benefit related to the Tax Cuts and Jobs Act of 2017. The tax benefit increased our net income and our basic and diluted income per share for the fourth quarter of 2017 by approximately $0.66 per share and $0.65 per share, respectively. See Note 10 — Income Taxes in the Notes to the Consolidated Financial Statements for additional information regarding the impact of the Tax Cuts and Jobs Act of 2017.

(2) The aggregate of the four quarters’ basic and diluted earnings per common share may not equal the reported full calendar year amounts due to the effects of share repurchases, dilutive equity compensation, and rounding.

## RECENTLY ISSUED ACCOUNTING STANDARDS

The FASB has issued accounting standards that have not yet become effective and that may impact the Company’s consolidated financial statements or related disclosures in future periods. Note 1 — Business and Significant Accounting Policies in the Notes to the Consolidated Financial Statements herein provides information regarding these accounting standards.

## ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

## INTEREST RATE RISK

At December 31, 2017, the Company had $3.3 billion in outstanding debt. Approximately $2.5 billion of the Company's total debt outstanding as of December 31, 2017 was based on a floating base rate of interest, which potentially exposes the Company to increases in interest rates. However, we partially reduce our overall exposure to changes in interest rates through our interest rate swap contracts, which effectively converts the floating base interest rate on a portion of these variable rate borrowings to fixed rates. Thus we are exposed to base interest rate risk on floating rate borrowings only in excess of any amounts that are not hedged. At December 31, 2017, we had unhedged interest rate risk on approximately $1.1 billion of borrowings. As an indication of our potential exposure to changes in interest rates, a hypothetical 25 basis point increase or decrease in interest rates could change our annual pre-tax interest expense by approximately $2.8 million.

## FOREIGN CURRENCY RISK

For both years ended December 31, 2017 and 2016, 42% of our revenues were derived from sales outside of the United States. Among the major foreign currencies in which we conduct business are the Euro, the British Pound, the Japanese Yen, the Australian dollar, and the Canadian dollar. The reporting currency of our consolidated financial statements is the U.S. dollar. As the values



of the foreign currencies in which we operate fluctuate over time relative to the U.S. dollar, the Company is exposed to both foreign currency translation and transaction risk.

Translation risk arises as our foreign currency assets and liabilities are translated into U.S. dollars since the functional currencies of our foreign operations are generally denominated in the local currency. Adjustments resulting from the translation of these assets and liabilities are deferred and recorded as a component of stockholders' equity (deficit). A measure of the potential impact of foreign currency translation can be determined through a sensitivity analysis of our cash and cash equivalents. At December 31, 2017, we had $538.9 million of cash and cash equivalents (excluding cash held-for-sale), with a substantial portion denominated in foreign currencies. If the exchange rates of the foreign currencies we hold all changed in comparison to the U.S. dollar by 10%, the amount of cash and cash equivalents we would have reported on December 31, 2017 would have increased or decreased by approximately $28.0 million. The translation of our foreign currency revenues and expenses historically has not had a material impact on our consolidated earnings since movements in and among the major currencies in which we operate tend to impact our revenues and expenses fairly equally. However, our earnings could be impacted during periods of significant exchange rate volatility, or when some or all of the major currencies in which we operate move in the same direction against the U.S. dollar.

Transaction risk arises when our foreign subsidiaries enter into transactions that are denominated in a currency that may differ from the local functional currency. As these transactions are translated into the local functional currency, a gain or loss may result, which is recorded in current period earnings. We typically enter into foreign currency forward exchange contracts to mitigate the effects of some of this foreign currency transaction risk. Our outstanding currency contracts as of December 31, 2017 had an immaterial net unrealized loss.

## CREDIT RISK

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of short-term, highly liquid investments classified as cash equivalents, accounts receivable, interest rate swap contracts and foreign exchange contracts. The majority of the Company’s cash and cash equivalents, interest rate swap contracts, and its foreign exchange contracts are with large investment grade commercial banks. Accounts receivable balances deemed to be collectible from customers have limited concentration of credit risk due to our diverse customer base and geographic dispersion.

## ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Our consolidated financial statements for 2017, 2016, and 2015, together with the reports of KPMG LLP, our independent registered public accounting firm, are included herein in this Annual Report on Form 10-K.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.



## ITEM 9A. CONTROLS AND PROCEDURES

## DISCLOSURE CONTROLS AND PROCEDURES

Management conducted an evaluation, as of December 31, 2017, of the effectiveness of the design and operation of our disclosure controls and procedures, (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) under the supervision and with the participation of our chief executive officer and chief financial officer. Based upon that evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures are effective in alerting them in a timely manner to material Company information required to be disclosed by us in reports filed or submitted under the Exchange Act.

## MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Gartner management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Gartner’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2017. In making this assessment, management used the criteria set forth in the Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Management’s assessment was reviewed with the Audit Committee of the Board of Directors.

Based on its assessment of internal control over financial reporting, management has concluded that, as of December 31, 2017, Gartner’s internal control over financial reporting was effective. The effectiveness of management’s internal control over financial reporting as of December 31, 2017 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report which is included in this Annual Report on Form 10-K in Part IV, Item 15.

## CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company acquired two businesses in 2017, L2 and CEB. We are currently in the process of integrating these businesses, evaluating their internal controls, and implementing the Company's internal control structure over these operations. Due to the timing of these acquisitions, we have excluded them from the scope of our Sarbanes-Oxley Section 404 report on internal control over financial reporting for our fiscal year ending December 31, 2017. This exclusion is in accordance with the general guidance issued by the Staff of the Securities and Exchange Commission that an assessment of a recent business acquisition may be omitted from management's report on internal control over financial reporting in the first year of consolidation. We expect to complete the implementation of our internal control structure over these acquisitions in 2018.

Other than the changes noted above, there has been no change in our internal control over financial reporting during the quarter ended December 31, 2017, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

## ITEM 9B. OTHER INFORMATION

Not applicable.



## PART III

## ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required to be furnished pursuant to this item will be set forth under the captions “Proposal One: Election of Directors,” “Executive Officers,” “Corporate Governance,” “Section 16(a) Beneficial Ownership Reporting Compliance” and “Miscellaneous — Available Information” in the Company’s Proxy Statement to be filed with the SEC no later than April 30, 2018. If the Proxy Statement is not filed with the SEC by April 30, 2018, such information will be included in an amendment to this Annual Report filed by April 30, 2018. See also Item 1. Business — Available Information.

## ITEM 11. EXECUTIVE COMPENSATION.

The information required to be furnished pursuant to this item is incorporated by reference from the information set forth under the caption “Executive Compensation” in the Company’s Proxy Statement to be filed with the SEC no later than April 30, 2018. If the Proxy Statement is not filed with the SEC by April 30, 2018, such information will be included in an amendment to this Annual Report filed by April 30, 2018.

## ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The information required to be furnished pursuant to this item will be set forth under the caption “Security Ownership of Certain Beneficial Owners and Management” in the Company’s Proxy Statement to be filed with the SEC by April 30, 2018. If the Proxy Statement is not filed with the SEC by April 30, 2018, such information will be included in an amendment to this Annual Report filed by April 30, 2018.

## ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE.

The information required to be furnished pursuant to this item will be set forth under the captions “Transactions With Related Persons” and “Corporate Governance — Director Independence” in the Company’s Proxy Statement to be filed with the SEC by April 30, 2018. If the Proxy Statement is not filed with the SEC by April 30, 2018, such information will be included in an amendment to this Annual Report filed by April 30, 2018.

## ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information required to be furnished pursuant to this item will be set forth under the caption “Principal Accountant Fees and Services” in the Company’s Proxy Statement to be filed with the SEC no later than April 30, 2018. If the Proxy Statement is not filed with the SEC by April 30, 2018, such information will be included in an amendment to this Annual Report filed by April 30, 2018.



## PART IV

## ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

## (a) 1. and 2. Consolidated Financial Statements and Schedules

The reports of our independent registered public accounting firm and consolidated financial statements listed in the Index to Consolidated Financial Statements herein are filed as part of this report.

All financial statement schedules not listed in the Index have been omitted because the information required is not applicable or is shown in the consolidated financial statements or notes thereto.

## 3. Exhibits

<table><tr><td>EXHIBIT NUMBER</td><td>DESCRIPTION OF DOCUMENT</td></tr><tr><td>2.1(1)</td><td>Agreement and Plan of Merger by and among the Company, Cobra Acquisition Corp. and CEB Inc., dated as of January 5, 2017.</td></tr><tr><td>3.1(2)</td><td>Restated Certificate of Incorporation of the Company.</td></tr><tr><td>3.2(3)</td><td>Bylaws as amended through February 2, 2012.</td></tr><tr><td>4.1(2)</td><td>Form of Certificate for Common Stock as of June 2, 2005.</td></tr><tr><td>4.2(4)</td><td>Credit Agreement, dated as of June 17, 2016, among the Company, the several lenders from time to time parties thereto, and JPMorgan Chase Bank, N.A. as administrative agent.</td></tr><tr><td>4.3(4)</td><td>Guarantee and Collateral Agreement, dated as of June 17, 2016, among the Company and certain of its subsidiaries, in favor of JPMorgan Chase Bank, N.A. as administrative agent.</td></tr><tr><td>4.4(1)</td><td>Commitment Letter among the Company, JPMorgan Chase Bank, N.A. and Goldman Sachs Bank USA, dated January 5, 2017.</td></tr><tr><td>4.5(5)</td><td>First Amendment to Credit Agreement, dated as of January 20, 2017, among the Company, the several lenders from time to time parties thereto, and JPMorgan Chase Bank, N.A. as administrative agent, filed as of January 24, 2017.</td></tr><tr><td>4.6(6)</td><td>Second Amendment, dated as of March 20, 2017, among the Company, each other Loan Party party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent.</td></tr><tr><td>4.7(7)</td><td>Incremental Amendment, dated as of April 5, 2017, among the Company, each other Loan Party party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent.</td></tr><tr><td>4.8(7)</td><td>364-Day Bridge Credit Agreement, dated as of April 5, 2017, among the Company, each other Loan Party party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent.</td></tr><tr><td>4.9(8)</td><td>Indenture (including form of Notes), dated as of March 30, 2017, among the Company, the guarantors named therein and U.S. Bank National Association, as trustee, relating to the $800,000,000 aggregate principal amount of 5.125% Senior Notes due 2025.</td></tr><tr><td>10.1(9)</td><td>Amended and Restated Lease dated April 16, 2010 between Soundview Farms and the Company for premises at 56 Top Gallant Road, 70 Gatehouse Road, and 88 Gatehouse Road, Stamford, Connecticut.</td></tr><tr><td>10.2(9)</td><td>First Amendment to Amended and Restated Lease dated April 16, 2010 between Soundview Farms and the Company for premises at 56 Top Gallant Road, 70 Gatehouse Road, and 88 Gatehouse Road, Stamford, Connecticut.</td></tr><tr><td>10.3(10)+</td><td>2011 Employee Stock Purchase Plan.</td></tr><tr><td>10.4(11)+</td><td>2003 Long -Term Incentive Plan, as amended and restated effective June 4, 2009.</td></tr><tr><td>10.5(12)+</td><td>Gartner, Inc. Long-Term Incentive Plan, effective August 1, 2017.</td></tr><tr><td>10.6(13)+</td><td>Amended and Restated Employment Agreement between Eugene A. Hall and the Company dated as of March 19, 2016.</td></tr><tr><td>10.7(14)+</td><td>Company Deferred Compensation Plan, effective January 1, 2009.</td></tr><tr><td>10.8(15)+</td><td>Form of 2017 Stock Appreciation Right Agreement for executive officers.</td></tr></table>



10.9(15)+ Form of 2017 Performance Stock Unit Agreement for executive officers.

10.10(16)+ Form of 2017 Restricted Stock Unit Agreement for Certain Officers.

10.11*+ Separation Agreement and Release of Claims, dated October 12, 2017, between the Company and Per Anders Waern.

21.1* Subsidiaries of Registrant.

23.1* Consent of Independent Registered Public Accounting Firm.

24.1* Power of Attorney (see Signature Page).

31.1* Certification of chief executive officer under Section 302 of the Sarbanes-Oxley Act of 2002.

31.2* Certification of chief financial officer under Section 302 of the Sarbanes-Oxley Act of 2002.

32* Certification under Section 906 of the Sarbanes-Oxley Act of 2002.

* Filed with this document.

+ Management compensation plan or arrangement.

(1) Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 5, 2017.

(2) Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 6, 2005.

(3) Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 7, 2012.

(4) Incorporated by reference from the Company’s Quarterly Report on form 10-Q filed on August 4, 2016.

(5) Incorporated by reference from the Company’s Current Report on form 8-K filed on January 24, 2017.

(6) Incorporated by reference from the Company’s Current Report on form 8-K filed on March 21, 2017.

(7) Incorporated by reference from the Company’s Current Report on form 8-K filed on April 6, 2017.

(8) Incorporated by reference from the Company’s Current Report on form 8-K filed on March 30, 2017.

(9) Incorporated by reference from the Company’s Quarterly Report on form 10-Q filed on August 9, 2010.

(10) Incorporated by reference from the Company’s Proxy Statement (Schedule 14A) filed on April 18, 2011.

(11) Incorporated by reference from the Company’s Proxy Statement (Schedule 14A) filed on April 21, 2009

(12) Incorporated by reference from the Company’s Current Report on form 8-K filed on August 2, 2017.

(13) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed on May 5, 2016.

(14) Incorporated by reference from the Company’s Annual Report on Form 10-K filed on February 20, 2009.

(15) Incorporated by reference from the Company’s Current Report on Form 8-K dated February 7, 2017.

(16) Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed on November 2, 2017.



## INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
GARTNER, INC.
CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm 44
Report of Independent Registered Public Accounting Firm 45
Consolidated Balance Sheets as of December 31, 2017 and 2016 46
Consolidated Statements of Operations for the Three Year Period Ended December 31, 2017 47
Consolidated Statements of Comprehensive Income for the Three Year Period Ended December 31, 2017 48
Consolidated Statements of Stockholders' Equity (Deficit) for the Three Year Period Ended December 31, 2017 49
Consolidated Statements of Cash Flows for the Three Year Period Ended December 31, 2017 50
Notes to Consolidated Financial Statements 51

All financial statement schedules have been omitted because the information required is not applicable or is shown in the consolidated financial statements or notes thereto.



## Report of Independent Registered Public Accounting Firm

To the stockholders and board of directors
Gartner, Inc.:

## Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Gartner, Inc. and subsidiaries (the Company) as of December 31, 2017 and 2016, the related consolidated statements of operations, comprehensive income, stockholders' equity (deficit), and cash flows for each of the years in the three-year period ended December 31, 2017, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission”, and our report dated February 22, 2018 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

## Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

## /s/ KPMG LLP

We have served as the Company’s auditor since 1996.

New York, New York
February 22, 2018



## Report of Independent Registered Public Accounting Firm

To the stockholders and board of directors

Gartner, Inc.:

## Opinion on Internal Control Over Financial Reporting

We have audited Gartner, Inc. and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2017 and 2016, the related consolidated statements of operations, comprehensive income, stockholders' equity (deficit), and cash flows for each of the years in the three-year period ended December 31, 2017, and the related notes (collectively, the consolidated financial statements), and our report dated February 22, 2018 expressed an unqualified opinion on those consolidated financial statements.

The Company acquired L2, Inc. on March 9, 2017 and CEB, Inc. on April 5, 2017. Management excluded these businesses from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2017. L2, Inc. and CEB, Inc. represented approximately 12% and 16% of the Company’s total consolidated assets and total consolidated revenues, respectively, as of and for the year ended December 31, 2017. Our audit of internal control over financial reporting of Gartner, Inc. and subsidiaries also excluded an evaluation of the internal control over financial reporting of L2, Inc. and CEB, Inc.

## Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

## Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

New York, New York

February 22, 2018



<table><tr><td rowspan="2"></td><td colspan="2">December 31,</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td>ASSETS</td><td></td><td></td></tr><tr><td>Current assets:</td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$ 538,908</td><td>$ 474,233</td></tr><tr><td>Fees receivable, net of allowances of $12,700 and $7,400 respectively</td><td>1,176,843</td><td>643,013</td></tr><tr><td>Deferred commissions</td><td>205,260</td><td>141,410</td></tr><tr><td>Prepaid expenses and other current assets</td><td>124,632</td><td>84,540</td></tr><tr><td>Assets held-for-sale</td><td>542,965</td><td>—</td></tr><tr><td>Total current assets</td><td>2,588,608</td><td>1,343,196</td></tr><tr><td>Property, equipment and leasehold improvements, net</td><td>221,507</td><td>121,606</td></tr><tr><td>Goodwill</td><td>2,987,294</td><td>738,453</td></tr><tr><td>Intangible assets, net</td><td>1,292,022</td><td>76,801</td></tr><tr><td>Other assets</td><td>193,742</td><td>87,279</td></tr><tr><td>Total Assets</td><td>$ 7,283,173</td><td>$ 2,367,335</td></tr><tr><td>LIABILITIES AND STOCKHOLDERS&#x27; EQUITY</td><td></td><td></td></tr><tr><td>Current liabilities:</td><td></td><td></td></tr><tr><td>Accounts payable and accrued liabilities</td><td>$ 666,821</td><td>$ 440,771</td></tr><tr><td>Deferred revenues</td><td>1,630,198</td><td>989,478</td></tr><tr><td>Current portion of long-term debt</td><td>379,721</td><td>30,000</td></tr><tr><td>Liabilities held-for-sale</td><td>145,845</td><td>—</td></tr><tr><td>Total current liabilities</td><td>2,822,585</td><td>1,460,249</td></tr><tr><td>Long-term debt, net of deferred financing fees</td><td>2,899,124</td><td>664,391</td></tr><tr><td>Other liabilities</td><td>577,999</td><td>181,817</td></tr><tr><td>Total Liabilities</td><td>6,299,708</td><td>2,306,457</td></tr><tr><td>Stockholders&#x27; Equity:</td><td></td><td></td></tr><tr><td>Preferred stock:</td><td></td><td></td></tr><tr><td>$0.01 par value, authorized 5,000,000 shares; none issued or outstanding</td><td>—</td><td>—</td></tr><tr><td>Common stock:</td><td></td><td></td></tr><tr><td>$0.0005 par value, authorized 250,000,000 shares for both periods; 163,602,067 shares issued at December 31, 2017 and 156,234,415 shares issued at December 31, 2016</td><td>82</td><td>78</td></tr><tr><td>Additional paid-in capital</td><td>1,761,383</td><td>863,127</td></tr><tr><td>Accumulated other comprehensive income (loss), net</td><td>1,508</td><td>(49,683)</td></tr><tr><td>Accumulated earnings</td><td>1,647,284</td><td>1,644,005</td></tr><tr><td>Treasury stock, at cost, 72,779,205 and 73,583,172 common shares, respectively</td><td>(2,426,792)</td><td>(2,396,649)</td></tr><tr><td>Total Stockholders&#x27; Equity</td><td>983,465</td><td>60,878</td></tr><tr><td>Total Liabilities and Stockholders&#x27; Equity</td><td>$ 7,283,173</td><td>$ 2,367,335</td></tr></table>

See Notes to Consolidated Financial Statements.



## GARTNER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)

<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Revenues:</td><td></td><td></td><td></td></tr><tr><td>Research</td><td>$ 2,471,280</td><td>$ 1,857,001</td><td>$ 1,614,904</td></tr><tr><td>Consulting</td><td>327,661</td><td>318,934</td><td>296,317</td></tr><tr><td>Events</td><td>337,903</td><td>268,605</td><td>251,835</td></tr><tr><td>Talent Assessment &amp; Other</td><td>174,650</td><td>—</td><td>—</td></tr><tr><td>Total revenues</td><td>3,311,494</td><td>2,444,540</td><td>2,163,056</td></tr><tr><td>Costs and expenses:</td><td></td><td></td><td></td></tr><tr><td>Cost of services and product development</td><td>1,320,198</td><td>945,648</td><td>839,076</td></tr><tr><td>Selling, general and administrative</td><td>1,599,004</td><td>1,089,184</td><td>962,677</td></tr><tr><td>Depreciation</td><td>63,897</td><td>37,172</td><td>33,789</td></tr><tr><td>Amortization of intangibles</td><td>176,274</td><td>24,797</td><td>13,342</td></tr><tr><td>Acquisition and integration charges</td><td>158,450</td><td>42,598</td><td>26,175</td></tr><tr><td>Total costs and expenses</td><td>3,317,823</td><td>2,139,399</td><td>1,875,059</td></tr><tr><td>Operating (loss) income</td><td>(6,329)</td><td>305,141</td><td>287,997</td></tr><tr><td>Interest income</td><td>3,011</td><td>2,449</td><td>1,766</td></tr><tr><td>Interest expense</td><td>(127,947)</td><td>(27,565)</td><td>(22,548)</td></tr><tr><td>Other income, net</td><td>3,448</td><td>8,406</td><td>4,996</td></tr><tr><td>(Loss) income before income taxes</td><td>(127,817)</td><td>288,431</td><td>272,211</td></tr><tr><td>(Benefit) provision for income taxes</td><td>(131,096)</td><td>94,849</td><td>96,576</td></tr><tr><td>Net income</td><td>$ 3,279</td><td>$ 193,582</td><td>$ 175,635</td></tr><tr><td>Net income per share:</td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$ 0.04</td><td>$ 2.34</td><td>$ 2.09</td></tr><tr><td>Diluted</td><td>$ 0.04</td><td>$ 2.31</td><td>$ 2.06</td></tr><tr><td>Weighted average shares outstanding:</td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>88,466</td><td>82,571</td><td>83,852</td></tr><tr><td>Diluted</td><td>89,790</td><td>83,820</td><td>85,056</td></tr></table>

See Notes to Consolidated Financial Statements.



## GARTNER, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS)

<table><tr><td rowspan="2"></td><td colspan="4">Year Ended December 31,</td></tr><tr><td>2017</td><td colspan="2">2016</td><td>2015</td></tr><tr><td>Net income</td><td>$ 3,279</td><td>$ 193,582</td><td>$ 175,635</td><td></td></tr><tr><td>Other comprehensive income (loss), net of tax</td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign currency translation adjustments</td><td>47,363</td><td>(5,986)</td><td>(23,089)</td><td></td></tr><tr><td>Interest rate hedges - net change in deferred gain or loss</td><td>3,892</td><td>1,670</td><td>(1,339)</td><td></td></tr><tr><td>Pension plans - net change in deferred actuarial loss</td><td>(64)</td><td>(965)</td><td>1,196</td><td></td></tr><tr><td>Other comprehensive income (loss), net of tax</td><td>51,191</td><td>(5,281)</td><td>(23,232)</td><td></td></tr><tr><td>Comprehensive income</td><td>$ 54,470</td><td>$ 188,301</td><td>$ 152,403</td><td></td></tr></table>

See Notes to Consolidated Financial Statements.



## GARTNER, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(IN THOUSANDS)

<table><tr><td></td><td>Common Stock</td><td>Additional Paid-In Capital</td><td>Accumulated Other Comprehensive Income (Loss), Net</td><td>Accumulated Earnings</td><td>Treasury Stock</td><td>Total Stockholders&#x27; Equity (Deficit)</td></tr><tr><td>Balance at December 31, 2014</td><td>$ 78</td><td>$ 764,433</td><td>$ (21,170)</td><td>$ 1,275,049</td><td>$ (1,857,219)</td><td>$ 161,171</td></tr><tr><td>Net income</td><td>—</td><td>—</td><td>—</td><td>175,635</td><td>—</td><td>175,635</td></tr><tr><td>Other comprehensive loss</td><td>—</td><td>—</td><td>(23,232)</td><td>—</td><td>—</td><td>(23,232)</td></tr><tr><td>Issuances under stock plans</td><td>—</td><td>(5,964)</td><td>—</td><td>—</td><td>13,495</td><td>7,531</td></tr><tr><td>Stock compensation tax benefits</td><td>—</td><td>13,928</td><td>—</td><td>—</td><td>—</td><td>13,928</td></tr><tr><td>Common share repurchases</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(513,582)</td><td>(513,582)</td></tr><tr><td>Stock compensation expense</td><td>—</td><td>46,149</td><td>—</td><td>—</td><td>—</td><td>46,149</td></tr><tr><td>Balance at December 31, 2015</td><td>$ 78</td><td>$ 818,546</td><td>$ (44,402)</td><td>$ 1,450,684</td><td>$ (2,357,306)</td><td>$ (132,400)</td></tr><tr><td>Adoption of ASU No. 2016-09</td><td>—</td><td>—</td><td>—</td><td>(261)</td><td>—</td><td>(261)</td></tr><tr><td>Net income</td><td>—</td><td>—</td><td>—</td><td>193,582</td><td>—</td><td>193,582</td></tr><tr><td>Other comprehensive loss</td><td>—</td><td>—</td><td>(5,281)</td><td>—</td><td>—</td><td>(5,281)</td></tr><tr><td>Issuances under stock plans</td><td>—</td><td>(2,080)</td><td>—</td><td>—</td><td>12,419</td><td>10,339</td></tr><tr><td>Common share repurchases</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(51,762)</td><td>(51,762)</td></tr><tr><td>Stock compensation expense</td><td>—</td><td>46,661</td><td>—</td><td>—</td><td>—</td><td>46,661</td></tr><tr><td>Balance at December 31, 2016</td><td>$ 78</td><td>$ 863,127</td><td>$ (49,683)</td><td>$ 1,644,005</td><td>$ (2,396,649)</td><td>$ 60,878</td></tr><tr><td>Net income</td><td>—</td><td>—</td><td>—</td><td>3,279</td><td>—</td><td>3,279</td></tr><tr><td>Other comprehensive income</td><td>—</td><td>—</td><td>51,191</td><td>—</td><td>—</td><td>51,191</td></tr><tr><td>Issuances under stock plans and for acquisition</td><td>4</td><td>819,313</td><td>—</td><td>—</td><td>11,129</td><td>830,446</td></tr><tr><td>Common share repurchases</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(41,272)</td><td>(41,272)</td></tr><tr><td>Stock compensation expense</td><td>—</td><td>78,943</td><td>—</td><td>—</td><td>—</td><td>78,943</td></tr><tr><td>Balance at December 31, 2017</td><td>$ 82</td><td>$ 1,761,383</td><td>$ 1,508</td><td>$ 1,647,284</td><td>$ (2,426,792)</td><td>$ 983,465</td></tr></table>

See Notes to Consolidated Financial Statements.



Year Ended December 31,

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Operating activities:</td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>$ 3,279</td><td>$ 193,582</td><td>$ 175,635</td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operating activities:</td><td></td><td></td><td></td></tr><tr><td>Depreciation and amortization</td><td>240,171</td><td>61,969</td><td>47,131</td></tr><tr><td>Stock-based compensation expense</td><td>78,943</td><td>46,661</td><td>46,149</td></tr><tr><td>Excess tax benefits from stock-based compensation exercises</td><td>—</td><td>—</td><td>(13,860)</td></tr><tr><td>Deferred taxes</td><td>(217,414)</td><td>(2,648)</td><td>344</td></tr><tr><td>Gain on extinguishment of debt</td><td>—</td><td>(2,500)</td><td>—</td></tr><tr><td>Amortization and write-off of deferred financing fees</td><td>15,062</td><td>3,082</td><td>1,512</td></tr><tr><td>Changes in assets and liabilities, net of acquisitions:</td><td></td><td></td><td></td></tr><tr><td>Fees receivable, net</td><td>(368,516)</td><td>(68,661)</td><td>(44,476)</td></tr><tr><td>Deferred commissions</td><td>(61,393)</td><td>(18,673)</td><td>(13,236)</td></tr><tr><td>Prepaid expenses and other current assets</td><td>13,251</td><td>(21,604)</td><td>(13,268)</td></tr><tr><td>Other assets</td><td>(18,529)</td><td>20,005</td><td>(14,733)</td></tr><tr><td>Deferred revenues</td><td>382,852</td><td>97,979</td><td>91,840</td></tr><tr><td>Accounts payable, accrued, and other liabilities</td><td>186,811</td><td>56,440</td><td>82,523</td></tr><tr><td>Cash provided by operating activities</td><td>254,517</td><td>365,632</td><td>345,561</td></tr><tr><td>Investing activities:</td><td></td><td></td><td></td></tr><tr><td>Additions to property, equipment and leasehold improvements</td><td>(110,765)</td><td>(49,863)</td><td>(46,128)</td></tr><tr><td>Acquisitions - cash paid (net of cash acquired)</td><td>(2,634,809)</td><td>(34,186)</td><td>(196,229)</td></tr><tr><td>Cash used in investing activities</td><td>(2,745,574)</td><td>(84,049)</td><td>(242,357)</td></tr><tr><td>Financing activities:</td><td></td><td></td><td></td></tr><tr><td>Proceeds from employee stock purchase plan</td><td>11,711</td><td>9,250</td><td>7,499</td></tr><tr><td>Proceeds from borrowings</td><td>3,025,000</td><td>715,000</td><td>440,000</td></tr><tr><td>Payments for deferred financing fees</td><td>(51,171)</td><td>(4,975)</td><td>—</td></tr><tr><td>Payments on borrowings</td><td>(404,438)</td><td>(835,000)</td><td>(20,000)</td></tr><tr><td>Purchases of treasury stock</td><td>(41,272)</td><td>(58,961)</td><td>(509,049)</td></tr><tr><td>Excess tax benefits from stock-based compensation exercises</td><td>—</td><td>—</td><td>13,860</td></tr><tr><td>Cash provided by (used in) financing activities</td><td>2,539,830</td><td>(174,686)</td><td>(67,690)</td></tr><tr><td>Net increase in cash and cash equivalents</td><td>48,773</td><td>106,897</td><td>35,514</td></tr><tr><td>Effects of exchange rates on cash and cash equivalents</td><td>25,902</td><td>(5,640)</td><td>(27,840)</td></tr><tr><td>Cash and cash equivalents, beginning of period</td><td>474,233</td><td>372,976</td><td>365,302</td></tr><tr><td>Cash and cash equivalents, end of period</td><td>$ 548,908</td><td>$ 474,233</td><td>$ 372,976</td></tr><tr><td>Supplemental disclosures of cash flow information:</td><td></td><td></td><td></td></tr><tr><td>Cash paid during the period for:</td><td></td><td></td><td></td></tr><tr><td>Interest</td><td>$ 98,500</td><td>$ 23,400</td><td>$ 21,200</td></tr><tr><td>Income taxes, net of refunds received</td><td>$ 76,100</td><td>$ 86,300</td><td>$ 83,500</td></tr></table>

See Notes to Consolidated Financial Statements.



## GARTNER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

## 1 — BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

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 and build the successful organizations of tomorrow. We believe we have an unmatched combination of expert-led, practitioner-sourced and data-driven research that steers clients toward the right decisions on the issues that matter most. We’re trusted as an objective resource and critical partner by more than 12,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size. To learn more about how we help decision makers fuel the future of business, visit gartner.com.

Basis of presentation. The accompanying 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 the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 270 for financial information and with the applicable instructions of U.S. Securities & Exchange Commission (“SEC”) Regulation S-X. The fiscal year of Gartner is the twelve-month period from January 1 through December 31. All references to 2017, 2016 and 2015 herein refer to the fiscal year unless otherwise indicated.

Gartner delivers its principal products and services globally through four business segments: Research, Consulting, Events and Talent Assessment & Other. The Company acquired two businesses during 2017, L2, Inc. ("L2") and CEB Inc. ("CEB"). Note 2 — Acquisitions and Divestiture provides additional information regarding these acquisitions. When used in these notes, the terms "Gartner," "Company," "we," "us," or "our" refer to Gartner, Inc. and its consolidated subsidiaries.

Principles of consolidation. The accompanying 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 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, performance-based compensation charges, depreciation and amortization. Management believes its use of estimates in the accompanying consolidated financial statements to be reasonable.

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

Business Acquisitions. The Company completed acquisitions in each of the three years ended December 31, 2017 and detailed information related to these acquisitions is included in Note 2 — Acquisitions and Divestiture. The Company accounts for acquisitions in accordance with the acquisition method of accounting as prescribed by FASB ASC Topic No. 805, Business Combinations. The acquisition method of accounting requires the Company to record the net assets and liabilities acquired based on their estimated fair values as of the acquisition date, with any excess of the consideration transferred over the estimated fair value of the net assets acquired, including identifiable intangible assets, to be recorded to goodwill. Under the acquisition method, the operating results of acquired companies are included in the Company's consolidated financial statements beginning on the date of acquisition.

The determination of the fair values of intangible and other assets acquired in acquisitions requires management judgment and the consideration of a number of factors, significant among them the historical financial performance of the acquired businesses and projected performance, estimates surrounding customer turnover, as well as assumptions regarding the level of competition and the cost to reproduce certain assets. Establishing the useful lives of the intangibles also requires management judgment and the evaluation of a number of factors, among them projected cash flows and the likelihood of competition.

The Company classifies charges that are directly-related to its acquisitions in the line Acquisition and integration charges in the Consolidated Statements of Operations. The Company recorded $158.5 million, $42.6 million and $26.2 million of such charges in 2017, 2016 and 2015, respectively. Included in these directly-related and incremental charges are legal, consulting, retention,



severance, and accruals for cash payments subject to the continuing employment of certain key employees of the acquired companies.

Revenue Recognition. Revenue is recognized in accordance with U.S. GAAP and SEC Staff Accounting Bulletin No. 104, Revenue Recognition ("SAB 104"). Revenues are only recognized once all required criteria for recognition have been met. The accompanying Consolidated Statements of Operations present revenues net of any sales or value-added taxes that we collect from customers and remit to government authorities.

On January 1, 2018, the Company adopted FASB Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers" ("ASU No. 2014-09") which requires changes in revenue recognition policies as well as enhanced disclosures. The adoption of ASU No. 2014-09 did not have a material impact on the Company's consolidated financial statements. Additional information regarding the Company's adoption of ASU No. 2014-09 is provided below in the section titled Accounting standards issued but not yet adopted.

The Company’s revenues by significant source are as follows:

## Research

Research revenues are mainly derived from subscription contracts for research products. The related revenues are deferred and recognized ratably over the applicable contract term. Fees derived from assisting organizations in selecting the right business software for their needs are recognized as earned when the leads are provided to vendors.

The Company typically enters into subscription contracts for research products for twelve-month periods or longer. The majority of research contracts are billable upon signing, absent special terms granted on a limited basis from time to time. Research contracts are non-cancelable and non-refundable, except for government contracts that may have cancellation or fiscal funding clauses, which historically have not produced material cancellations. It is our policy to record the amount of the contract that is billable as a fee receivable at the time the contract is signed with a corresponding amount as deferred revenue, since the contract represents a legally enforceable claim.

## Consulting

Consulting revenues, primarily derived from custom consulting and measurement services, are principally generated from fixed fee or time and materials engagements. Revenues from fixed fee engagements are recognized on a proportional performance basis, while revenues from time and material engagements are recognized as work is delivered and/or services are provided. Revenues related to contract optimization engagements are contingent in nature and are only recognized upon satisfaction of all conditions related to their payment. Unbilled fees receivable associated with consulting engagements were $66.2 million at December 31, 2017 and $45.7 million at December 31, 2016.

## Events

Events revenues are deferred and recognized upon the completion of the related symposium, conference or exhibition. In addition, the Company defers certain costs directly related to events and expenses these costs in the period during which the related symposium, conference or exhibition occurs. The Company's policy is to defer only those costs, primarily prepaid site and production services costs, which are incremental and are directly attributable to a specific event. Other costs of organizing and producing our events, primarily Company personnel and non-event specific expenses, are expensed in the period incurred. At the end of each fiscal quarter, the Company assesses on an event-by-event basis whether the expected direct costs of producing a scheduled event will exceed the expected revenues. If such costs are expected to exceed revenues, the Company records the expected loss in the period determined.

## Talent Assessment & Other

Talent Assessment & Other revenues arising from knowledge and skill assessment services are recognized depending on the nature of the underlying contract: (i) ratably over the term of the service period; (ii) upon delivery; or (iii) on a proportional performance basis. Revenues from training programs and survey and questionnaire products are primarily recognized upon delivery of the service.

Allowance for losses. The Company maintains an allowance for losses which is composed of a bad debt allowance and a sales reserve. Provisions are charged against earnings, either as a reduction in revenues or an increase to expense. The determination



of the allowance for losses is based on historical loss experience, an assessment of current economic conditions, the aging of outstanding receivables, the financial health of specific clients, and probable losses.

Cost of services and product development (“COS”). COS expense includes the direct costs incurred in the creation and delivery of our products and services. These costs primarily relate to personnel.

Selling, general and administrative (“SG&A”). SG&A expense includes direct and indirect selling costs, general and administrative costs, and charges against earnings related to uncollectible accounts.

Commission expense. The Company records deferred commissions upon the signing of customer contracts and amortizes the deferred amount as commission expense over the period in which the related revenues are earned. Commission expense is included in SG&A in the Consolidated Statements of Operations.

Stock-based compensation expense. The Company accounts for stock-based compensation awards in accordance with FASB ASC Topics 505 and 718 and SEC Staff Accounting Bulletins No. 107 and No. 110. Stock-based compensation expense is based on the fair value of the award on the date of grant. The Company recognizes stock-based compensation expense over the period that the related service is performed, which is generally the same as the vesting period of the underlying award. During 2017, 2016 and 2015, the Company recognized $78.9 million, $46.7 million and $46.1 million, respectively, of stock-based compensation expense.

Effective January 1, 2016, the Company adopted FASB ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU No. 2016-09"). ASU No. 2016-09 mandated certain changes in accounting for stock-based compensation, including a requirement that excess tax benefits or deficiencies resulting from stock-based compensation awards be recognized in income tax expense or benefit subsequent to the date of adopting the new accounting standard. Previously, an entity's excess tax benefits or deficiencies were recorded in additional paid-in capital. ASU No. 2016-09 also requires that excess tax benefits related to stock-based compensation awards be reported as an operating activity in an entity's statement of cash flows. Previously, excess tax benefits were reported as financing activities. As permitted by ASU No. 2016-09, the Company elected to apply these changes prospectively, commencing on January 1, 2016. The provisions of ASU No. 2016-09 had no impact on our financial results for periods prior to 2016. If the Company had applied ASU No. 2016-09 to 2015: (i) income tax expense would have declined by $13.9 million; (ii) basic and diluted income per share would have increased by $0.17 and $0.16, respectively; and (iii) cash provided by operating activities would have increased by $13.9 million.

ASU No. 2016-09 also permits companies to make an entity-wide accounting policy election to recognize forfeitures of share-based compensation awards as they occur or make an estimate by applying a forfeiture rate each quarter. The Company previously estimated forfeitures but optionally elected to change its accounting policy and account for forfeitures as they occur. ASU No. 2016-09 requires this change in accounting policy to be applied using a cumulative effect adjustment to accumulated earnings as of the beginning of the period in which the rule is adopted. Accordingly, the Company recorded a $0.3 million decrease to its opening accumulated earnings effective January 1, 2016.

Income taxes. The Company uses the asset and liability method of accounting for income taxes. We estimate our income taxes in each of the jurisdictions where we operate. This process involves estimating our current tax expense together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within our consolidated balance sheets. In assessing the realizability of deferred tax assets, management considers if it is more likely than not that some or all of the deferred tax assets will not be realized. We consider the availability of loss carryforwards, projected reversal of deferred tax liabilities, projected future taxable income, and ongoing prudent and feasible tax planning strategies in making this assessment. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained based on the technical merits of the position.

Cash and cash equivalents. Includes cash and all highly liquid investments with original maturities of three months or less, which are considered cash equivalents. The carrying value of cash equivalents approximates fair value due to their short-term maturity. Investments with maturities of more than three months are classified as marketable securities. Interest earned is classified in Interest income in the Consolidated Statements of Operations. As of December 31, 2017, the Company had $538.9 million of cash and cash equivalents and an additional $10.0 million of cash classified as held-for-sale in its Consolidated Balance Sheet, for a total cash balance of $548.9 million, which was reported as the ending cash balance in the Consolidated Statement of Cash Flows.

Property, equipment and leasehold improvements. The Company leases all of its facilities and certain equipment. These leases are all classified as operating leases in accordance with FASB ASC Topic 840. The cost of these operating leases, including any contractual rent increases, rent concessions, and landlord incentives, are recognized ratably over the life of the related lease agreement. Lease expense was $87.9 million, $38.0 million, and $33.8 million in 2017, 2016 and 2015, respectively.



Equipment, leasehold improvements, and other fixed assets owned by the Company are recorded at cost less accumulated depreciation. Except for leasehold improvements, these fixed assets are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the improvement or the remaining term of the related lease. The Company had total depreciation expense of $63.9 million, $37.2 million, and $33.8 million in 2017, 2016 and 2015, respectively. The Company's total fixed assets, less accumulated depreciation and amortization, consisted of the following (in thousands):

<table><tr><td rowspan="2">Category</td><td rowspan="2">Useful Life (Years)</td><td colspan="2">December 31,</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td>Computer equipment and software</td><td>2-7</td><td>$ 189,015</td><td>$ 166,385</td></tr><tr><td>Furniture and equipment</td><td>3-8</td><td>67,288</td><td>43,137</td></tr><tr><td>Leasehold improvements</td><td>2-15</td><td>175,716</td><td>96,603</td></tr><tr><td></td><td></td><td>$ 432,019</td><td>$ 306,125</td></tr><tr><td>Less — accumulated depreciation and amortization</td><td></td><td>(210,512)</td><td>(184,519)</td></tr><tr><td>Property, equipment, and leasehold improvements, net</td><td></td><td>$ 221,507</td><td>$ 121,606</td></tr></table>

The Company incurs costs to develop internal use software used in our operations, and certain of these costs meeting the criteria outlined in FASB ASC Topic No. 350 are capitalized and amortized over future periods. Net capitalized development costs for internal use software was $26.9 million and $16.6 million at December 31, 2017 and 2016, respectively, which is included in the Computer equipment and software category above. Amortization of capitalized internal software development costs, which is classified in Depreciation in the Consolidated Statements of Operations, totaled $9.9 million, $8.8 million and $8.2 million during 2017, 2016 and 2015 respectively.

Finite-lived intangible assets. The Company has finite-lived intangible assets which are amortized against earnings using the straight-line method over their expected useful lives. Changes in intangible assets subject to amortization during the two-year period ended December 31, 2017 were as follows (in thousands):

<table><tr><td>December 31, 2017</td><td>Customer Relationships</td><td>Software</td><td>Content</td><td>Other</td><td>Total</td></tr><tr><td>Gross cost, December 31, 2016</td><td>$ 63,369</td><td>$ 16,025</td><td>$ 3,728</td><td>$ 33,645</td><td>$ 116,767</td></tr><tr><td>Additions due to acquisitions (1)</td><td>1,253,312</td><td>180,787</td><td>141,707</td><td>24,384</td><td>1,600,190</td></tr><tr><td>Intangibles fully amortized</td><td>—</td><td>—</td><td>(4,227)</td><td>—</td><td>(4,227)</td></tr><tr><td>Reclassified as held-for-sale (2)</td><td>(140,156)</td><td>(69,012)</td><td>(38,593)</td><td>(2,711)</td><td>(250,472)</td></tr><tr><td>Foreign currency translation impact</td><td>23,791</td><td>(4,376)</td><td>1,698</td><td>(389)</td><td>20,724</td></tr><tr><td>Gross cost</td><td>1,200,316</td><td>123,424</td><td>104,313</td><td>54,929</td><td>1,482,982</td></tr><tr><td>Accumulated amortization (3)</td><td>(92,983)</td><td>(26,344)</td><td>(47,475)</td><td>(24,158)</td><td>(190,960)</td></tr><tr><td>Balance, December 31, 2017</td><td>$ 1,107,333</td><td>$ 97,080</td><td>$ 56,838</td><td>$ 30,771</td><td>$ 1,292,022</td></tr></table>

<table><tr><td>December 31, 2016</td><td>Customer Relationships</td><td>Software</td><td>Content</td><td>Other</td><td>Total</td></tr><tr><td>Gross cost, December 31, 2015</td><td>$ 62,860</td><td>$ 16,219</td><td>$ 5,450</td><td>$ 33,474</td><td>$ 118,003</td></tr><tr><td>Additions due to acquisitions</td><td>3,677</td><td>—</td><td>1,948</td><td>302</td><td>5,927</td></tr><tr><td>Intangibles fully amortized</td><td>—</td><td>(125)</td><td>(162)</td><td>—</td><td>(287)</td></tr><tr><td>Foreign currency translation impact</td><td>(3,168)</td><td>(69)</td><td>(3,508)</td><td>(131)</td><td>(6,876)</td></tr><tr><td>Gross cost</td><td>63,369</td><td>16,025</td><td>3,728</td><td>33,645</td><td>116,767</td></tr><tr><td>Accumulated amortization (3)</td><td>(16,744)</td><td>(8,904)</td><td>(2,033)</td><td>(12,285)</td><td>(39,966)</td></tr><tr><td>Balance, December 31, 2016</td><td>$ 46,625</td><td>$ 7,121</td><td>$ 1,695</td><td>$ 21,360</td><td>$ 76,801</td></tr></table>

(1) The additions were primarily due to the Company's acquisitions of CEB and L2 during April 2017 and March 2017, respectively. See Note 2 — Acquisitions and Divestiture for additional information.



(2) Represents amounts reclassified (net) as held-for-sale assets related to the CEB Talent Assessment business. See Note 2 — Acquisitions and Divestiture for additional information.

(3) Finite-lived intangible assets are amortized using the straight-line method over the following periods: Customer Relationships—4 to 13 years; Software 3 to 7 years; Content—1.5 to 5 years; and Other—2 to 5 years.

Amortization expense related to finite-lived intangible assets was $176.3 million, $24.8 million and $13.3 million in 2017, 2016 and 2015, respectively. The estimated future amortization expense by year from finite-lived intangibles is as follows (in thousands):**

<table><tr><td>2018</td><td>$ 190,442</td></tr><tr><td>2019</td><td>134,530</td></tr><tr><td>2020</td><td>128,133</td></tr><tr><td>2021</td><td>107,715</td></tr><tr><td>2022 and thereafter</td><td>731,202</td></tr><tr><td></td><td>$ 1,292,022</td></tr></table>

Goodwill. Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value 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.

The annual assessment of the recoverability of recorded goodwill can be based on either a qualitative or quantitative assessment or a combination of the two approaches. Both methods utilize estimates which, in turn, require judgments and assumptions regarding future trends and events. As a result, both the precision and reliability of the resulting estimates are subject to uncertainty. If our annual goodwill impairment evaluation determines that the fair value of a reporting unit is less than its related carrying amount, we may recognize an impairment charge. In connection with our most recent annual impairment test of goodwill during the third quarter of 2017, which indicated no impairment of recorded goodwill, the Company utilized the qualitative approach in assessing the fair values of its reporting units relative to their respective carrying values.

The following table presents changes to the carrying amount of goodwill by segment during the two-year period ended December 31, 2017 (in thousands):

<table><tr><td></td><td>Research</td><td>Consulting</td><td>Events</td><td>Talent Assessment &amp; Other</td><td>Total</td></tr><tr><td>Balance, December 31, 2015 (1)</td><td>$ 575,292</td><td>$ 98,412</td><td>$ 41,655</td><td>$ —</td><td>$ 715,359</td></tr><tr><td>Additions due to acquisitions</td><td>28,465</td><td>—</td><td>5,843</td><td>—</td><td>34,308</td></tr><tr><td>Foreign currency translation impact</td><td>(8,307)</td><td>(1,932)</td><td>(975)</td><td>—</td><td>(11,214)</td></tr><tr><td>Balance, December 31, 2016</td><td>$ 595,450</td><td>$ 96,480</td><td>$ 46,523</td><td>$ —</td><td>$ 738,453</td></tr><tr><td>Additions due to acquisitions (2)</td><td>2,042,514</td><td>—</td><td>140,914</td><td>274,363</td><td>2,457,791</td></tr><tr><td>Reclassified as held-for-sale (3)</td><td>—</td><td>—</td><td>—</td><td>(212,994)</td><td>(212,994)</td></tr><tr><td>Foreign currency translation impact</td><td>(18,287)</td><td>1,318</td><td>483</td><td>20,530</td><td>4,044</td></tr><tr><td>Balance, December 31, 2017</td><td>$ 2,619,677</td><td>$ 97,798</td><td>$ 187,920</td><td>$ 81,899</td><td>$ 2,987,294</td></tr></table>

(1) The Company does not have any accumulated goodwill impairment losses.

(2) The 2017 goodwill additions are due to the acquisitions of CEB and L2 during April 2017 and March 2017, respectively. See Note 2—Acquisitions and Divestiture for additional information.

(3) Represents amounts reclassified as held-for-sale assets related to the CEB Talent Assessment business. See Note 2 — Acquisitions and Divestiture for additional information.

Impairment of long-lived assets. The Company's long-lived assets primarily consist of intangible assets other than goodwill and property, equipment, and leasehold improvements. The Company reviews its long-lived asset groups for impairment whenever events or changes in circumstances indicate that the carrying amount of the respective asset may not be recoverable. Such evaluation may be based on a number of factors including current and projected operating results and cash flows, changes in management's strategic direction as well as external economic and market factors. The Company evaluates the recoverability of these assets by determining whether the carrying value can be recovered through undiscounted future operating cash flows. If events or circumstances indicate that the carrying value might not be recoverable based on undiscounted future operating cash flows, an



impairment loss would be recognized. The amount of impairment, if any, is measured based on the difference between projected discounted future operating cash flows using a discount rate reflecting the Company’s average cost of funds and the carrying value of the asset. The Company did not record any impairment charges for long-lived asset groups during the three year period ended December 31, 2017.

Pension obligations. The Company has defined-benefit pension plans in several of its international locations (see Note 13 — Employee Benefits). Benefits earned under these plans are generally based on years of service and level of employee compensation. The Company accounts for defined benefit plans in accordance with the requirements of FASB ASC Topic No. 715. The Company determines the periodic pension expense and related liabilities for these plans through actuarial assumptions and valuations. The Company recognized approximately $3.5 million of pension expense in each of the years ended 2017, 2016, and 2015. The Company classifies pension expense in SG&A in the Consolidated Statements of Operations.

Debt. The Company presents amounts borrowed in the Consolidated Balance Sheets at amortized cost, net of deferred financing fees. Interest accrued on amounts borrowed is classified in Interest expense in the Consolidated Statements of Operations. The Company amended its credit facility during 2017 and borrowed additional amounts related to its acquisitions. The Company had $3.3 billion of principal amount of debt outstanding at December 31, 2017 compared to $702.5 million at December 31, 2016. Note 5 — Debt provides information regarding the Company's debt.

Foreign currency exposure. The functional currency of our foreign subsidiaries is typically the local currency. All assets and liabilities of foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at average exchange rates for the year. The resulting translation adjustments are recorded as foreign currency translation adjustments, a component of Accumulated other comprehensive income (loss), net within the Stockholders' Equity section of the Consolidated Balance Sheets.

Currency transaction gains or losses arising from transactions denominated in currencies other than the functional currency of a subsidiary are recognized in results of operations in Other income, net within the Consolidated Statements of Operations. The Company had net currency transaction losses of $(5.5) million, $(0.4) million, and $(2.6) million in 2017, 2016, and 2015, respectively. The Company enters into foreign currency forward exchange contracts to mitigate the effects of adverse fluctuations in foreign currency exchange rates on these transactions. These contracts generally have a short duration and are recorded at fair value with both realized and unrealized gains and losses recorded in Other income, net. The net gain (loss) from these contracts was $0.8 million, $(0.3) million, and $(0.1) million in 2017, 2016, and 2015, respectively.

Comprehensive income. The Company reports comprehensive income in a separate statement called the Consolidated Statements of Comprehensive Income, which is included herein. The Company's comprehensive income disclosures are included in Note 7 — Stockholders' Equity.

Fair value disclosures. The Company has a limited number of assets and liabilities that are adjusted to fair value at each balance sheet date. The Company’s fair value disclosures are included in Note 12 — Fair Value Disclosures.

Concentrations of credit risk. Assets that may subject the Company to concentration of credit risk consist primarily of short-term, highly liquid investments classified as cash equivalents, fees receivable, interest rate swaps, and a pension reinsurance asset. The majority of the Company’s cash equivalent investments and its interest rate swap contracts are with investment grade commercial banks. Fees receivable balances deemed to be collectible from customers have limited concentration of credit risk due to our diverse customer base and geographic dispersion. The Company’s pension reinsurance asset (see Note 13 — Employee Benefits) is maintained with a large international insurance company that was rated investment grade as of December 31, 2017 and 2016.

Stock repurchase programs. The Company records the cost to repurchase its own common shares to treasury stock. During 2017, 2016 and 2015, the Company used $41.3 million, $59.0 million, and $509.0 million, respectively, in cash for stock repurchases (see Note 7 — Stockholders' Equity for additional information). Shares repurchased by the Company are added to treasury shares and are not retired.

Adoption of new accounting standards. The Company did not adopt any significant new accounting standards during 2017.



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

## Accounting standards effective in 2018

Stock Compensation Award Modifications — In May 2017, the FASB issued ASU No. 2017-09, "Compensation—Stock Compensation - Scope of Modification Accounting" ("ASU No. 2017-09"). ASU No. 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU No. 2017-09 was effective for Gartner on January 1, 2018. We have concluded that the adoption of ASU No. 2017-09 will not have a material impact on the Company's consolidated financial statements.

Retirement Benefits Cost Presentation — In March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits" ("ASU No. 2017-07"). ASU No. 2017-07 improves the reporting of net benefit cost in the financial statements, and provides additional guidance on the presentation of net benefit cost in the income statement and clarifies the components eligible for capitalization. ASU No. 2017-07 was effective for Gartner on January 1, 2018. We have concluded that the adoption of ASU No. 2017-07 will not have a material impact on the Company's consolidated financial statements.

Partial Sales of Non-financial Assets — In February 2017, the FASB issued ASU No. 2017-05, "Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets" ("ASU No. 2017-05"). ASU No. 2017-05 clarifies the scope of the FASB's recently established guidance on non-financial asset de-recognition as well as the accounting for partial sales of non-financial assets. It conforms the de-recognition guidance on non-financial assets with the model for revenue transactions. ASU No. 2017-05 was effective for Gartner on January 1, 2018. We have concluded that the adoption of ASU No. 2017-05 will not have a material impact on the Company's consolidated financial statements.

Definition of a Business — In January 2017, the FASB issued ASU No. 2017-01, "Clarifying the Definition of a Business" ("ASU No. 2017-01"), which was effective for Gartner on January 1, 2018. ASU No. 2017-01 changes the U.S. GAAP definition of a business which can impact the accounting for asset purchases, acquisitions, goodwill impairment, and other assessments. We have concluded that the adoption of ASU No. 2017-01 will not have a material impact on the Company's consolidated financial statements.

Presentation of Restricted Cash — In November 2016, the FASB issued ASU No. 2016-18, "Restricted Cash" ("ASU No. 2016-18"). ASU No. 2016-18 requires that amounts generally described as restricted cash and restricted cash equivalents be presented with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. If different, a reconciliation of the cash balances reported in the cash flow statement and the balance sheet would need to be provided along with explanatory information. ASU No. 2016-18 was effective for Gartner on January 1, 2018. The adoption of ASU No. 2016-18 will require the Company to disclose restricted cash and, as a result, will change the presentation of its consolidated statements of cash flows.

Income Taxes — In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" ("ASU No. 2016-16"). ASU No. 2016-16 accelerates the recognition of taxes on certain intra-entity transactions and was effective for Gartner on January 1, 2018. Current U.S. GAAP requires deferral of the income tax implications of an intercompany sale of assets until the assets are sold to a third party or recovered through use. Under the new rule, the seller's tax effects and the buyer's deferred taxes on post-adoption asset transfers will be immediately recognized upon the sale. On the date of adoption of ASU No. 2016-16 any taxes attributable to pre-2018 intra-entity transfers that were previously deferred will be accelerated and recorded to accumulated earnings as permitted by the transition rules. ASU 2016-16 could have a material impact on our consolidated financial statements in the future depending on the nature, size, and tax consequences of future intra-entity transfers, if any.

Statement of Cash Flows — In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" ("ASU No. 2016-15"). ASU No. 2016-15 sets forth classification requirements for certain cash flow transactions. ASU No. 2016-15 was effective for Gartner on January 1, 2018. We have concluded that the adoption of ASU No. 2016-15 will not have a material impact on the Company's consolidated financial statements.

Financial Instruments Recognition and Measurement — In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments Overall - Recognition and Measurement of Financial Assets and Liabilities" ("ASU No. 2016-01") to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among the significant changes required by ASU No. 2016-01 is that equity investments will be measured at fair value with changes in fair value recognized in net income. ASU No. 2016-01 was effective for Gartner on January 1, 2018. We have concluded that the adoption of ASU No. 2016-01 will not have a material impact on the Company's consolidated financial statements.



Revenue Recognition — In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU No. 2014-09"). ASU No. 2014-09 and related amendments require changes in revenue recognition policies as well as enhanced disclosures. ASU No. 2014-09 is intended to clarify the principles for recognizing revenue by removing inconsistencies and weaknesses in existing revenue recognition rules; provide a more robust framework for addressing revenue recognition issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and provide more useful information to users of financial statements through improved disclosures. ASU No. 2014-09 also requires significantly expanded disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. An entity may adopt ASU No. 2014-09 using either a full retrospective approach for each prior reporting period presented or a modified retrospective approach (the cumulative effect method). The Company adopted ASU No. 2014-09 on January 1, 2018 using the cumulative effect method of adoption. The adoption of ASU No. 2014-09 did not have a material impact on the Company's consolidated financial statements. The adoption of the standard does require the Company to reclassify certain immaterial amounts in the Company's consolidated balance sheet as well as provide the enhanced disclosures required by the standard, both of which will be provided in the Company's Form 10-Q filing for the quarterly period ending March 31, 2018.

## Accounting standards effective in 2019

Targeted Improvements to Accounting for Hedging Activities - In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging ("ASU No. 2017-12"). ASU No. 2017-12 is intended to improve the financial reporting of hedging relationships to better portray economic results of an entity's risk management activities in its financial statements. In addition to that main objective, the standard makes certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP. ASU No. 2017-12 is effective for Gartner on January 1, 2019. We are currently evaluating the impact of ASU No. 2017-12 on the Company's consolidated financial statements.

Distinguishing Liabilities from Equity — In July 2017, the FASB issued ASU No. 2017-11, "Earnings Per Share, Distinguishing Liabilities from Equity, and Derivatives and Hedging" ("ASU No. 2017-11"). ASU No. 2017-11 is intended to simplify the accounting for financial instruments with characteristics of liabilities and equity. Among the issues addressed are: (i) determining whether an instrument (or embedded feature) is indexed to an entity's own stock; (ii) distinguishing liabilities from equity for mandatorily redeemable financial instruments of certain nonpublic entities; and (iii) identifying mandatorily redeemable noncontrolling interests. ASU No. 2017-11 is effective for Gartner on January 1, 2019. We are currently evaluating the potential impact of ASU No. 2017-11 on the Company's consolidated financial statements.

Leases — In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU No. 2016-02") which will require significant changes in the accounting and disclosure for lease arrangements. Currently under U.S. GAAP, lease arrangements that meet certain criteria are considered operating leases and are not recorded on the balance sheet. All of the Company's existing lease arrangements are accounted for as operating leases and are thus not recorded on the Company's balance sheet. ASU No. 2016-02 will significantly change the accounting for leases since a right-of-use ("ROU") model must be used in which the lessee must record a ROU asset and a lease liability on the balance sheet for leases with terms longer than 12 months. Leases will be classified as either finance or operating arrangements, with classification affecting the pattern of expense recognition in the income statement. ASU No. 2016-02 also requires expanded disclosures about leasing arrangements. ASU No. 2016-02 will be effective for Gartner on January 1, 2019. We are currently evaluating the potential impact of ASU No. 2016-02 on our consolidated financial statements.

## Accounting standards effective in 2020

Goodwill Impairment — In January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other - Simplifying the Test for Goodwill Impairment" ("ASU No. 2017-04"). ASU No. 2017-04 simplifies the determination of the amount of goodwill to be potentially charged off by eliminating Step 2 of the current goodwill impairment test. ASU No. 2017-04 is effective for Gartner on January 1, 2020. We have concluded that the adoption of ASU No. 2017-04 will not have a material impact on the Company's consolidated financial statements.

Financial Instrument Credit Losses — In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses" ("ASU No. 2016-13"). ASU No. 2016-13 amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU No. 2016-13 is effective for Gartner on January 1, 2020, with early adoption permitted. We are currently evaluating the potential impact of ASU No. 2016-13 on our consolidated financial statements.

The FASB also continues to work on a number of other significant accounting standards which if issued could materially impact the Company's accounting policies and disclosures in future periods. However, since these standards have not yet been issued, the effective dates and potential impact are unknown.



## 2 — ACQUISITIONS AND DIVESTITURE

## Acquisitions

The Company accounts for business acquisitions in accordance with the acquisition method of accounting as prescribed by FASB ASC Topic 805, Business Combinations. The acquisition method of accounting requires the Company to record the net assets and liabilities acquired based on their estimated fair values as of the acquisition date, with any excess of the consideration transferred over the estimated fair value of the net assets acquired, including identifiable intangible assets, to be recorded to goodwill. Under the acquisition method, the operating results of acquired companies are included in the Company's consolidated financial statements beginning on the date of acquisition. The Company completed the following business acquisitions:

For the year ended December 31, 2017:

## CEB

On April 5, 2017, the Company acquired 100% of the outstanding capital stock of CEB for an aggregate purchase price of $3.5 billion. The consideration transferred by Gartner included approximately $2.7 billion in cash and $818.7 million in fair value of Gartner common shares. CEB was a publicly-held company headquartered in Arlington, Virginia with approximately 4,900 employees. CEB's primary business was to serve as a leading provider of subscription-based, best practice research and analysis focusing on human resources, sales, finance, IT, and legal. CEB served executives and professionals at corporate and middle market institutions in over 70 countries.

## L2

On March 9, 2017, the Company acquired 100% of the outstanding capital stock of L2, a privately-held firm based in New York City with 150 employees, for an aggregate purchase price of $134.2 million. L2 is a subscription-based research business that benchmarks the digital performance of brands.

## Total Consideration Transferred

The following table summarizes the aggregate consideration paid for these acquisitions (in thousands):

<table><tr><td>Aggregate consideration (1):</td><td>CEB</td><td>L2</td><td>Total</td></tr><tr><td>Cash paid at close (2), (3)</td><td>$ 2,687,704</td><td>$ 134,199</td><td>$ 2,821,903</td></tr><tr><td>Additional cash paid (2)</td><td>12,465</td><td>—</td><td>12,465</td></tr><tr><td>Fair value of Gartner equity (4)</td><td>818,660</td><td>—</td><td>818,660</td></tr><tr><td>Total (5)</td><td>$ 3,518,829</td><td>$ 134,199</td><td>$ 3,653,028</td></tr></table>

(1) Includes the total consideration transferred for 100% of the outstanding capital stock of the acquired businesses.

(2) The cash paid at close represents the gross contractual amount paid. The Company paid the additional $12.5 million in cash in third quarter 2017. Net of cash acquired from these businesses and for cash flow reporting purposes, the Company paid a total of $2.63 billion in cash.

(3) The Company borrowed a total of approximately $2.8 billion in conjunction with the CEB acquisition (see Note 7 — Debt for additional information).

(4) Consists of the fair value of (i) Gartner common stock issued (see Note 7 — Stockholders' Equity for additional information) and (ii) stock-based compensation replacement awards.

(5) The Company may also be required to pay up to an additional $20.8 million in cash for L2 which is contingent on the achievement of certain employment conditions by several key employees. This amount is being recognized as compensation expense over approximately three years.



The following table summarizes the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed for the acquisitions of L2 and CEB (in thousands):

<table><tr><td></td><td>CEB (3)</td><td>L2 (4)</td><td>Total</td></tr><tr><td>Assets:</td><td></td><td></td><td></td></tr><tr><td>Cash</td><td>$ 194,706</td><td>$ 4,852</td><td>$ 199,558</td></tr><tr><td>Fees receivable</td><td>175,440</td><td>8,277</td><td>183,717</td></tr><tr><td>Prepaid expenses and other current assets</td><td>53,610</td><td>1,167</td><td>54,777</td></tr><tr><td>Property, equipment and leasehold improvements</td><td>51,399</td><td>663</td><td>52,062</td></tr><tr><td>Goodwill (1)</td><td>2,349,589</td><td>108,202</td><td>2,457,791</td></tr><tr><td>Finite-lived intangible assets (2)</td><td>1,584,300</td><td>15,890</td><td>1,600,190</td></tr><tr><td>Other assets</td><td>66,818</td><td>13,067</td><td>79,885</td></tr><tr><td>Total assets</td><td>$ 4,475,862</td><td>$ 152,118</td><td>$ 4,627,980</td></tr><tr><td>Liabilities:</td><td></td><td></td><td></td></tr><tr><td>Accounts payable and accrued liabilities</td><td>$ 142,134</td><td>$ 3,050</td><td>$ 145,184</td></tr><tr><td>Deferred revenues (current)</td><td>246,472</td><td>13,200</td><td>259,672</td></tr><tr><td>Other liabilities</td><td>568,427</td><td>1,669</td><td>570,096</td></tr><tr><td>Total liabilities</td><td>$ 957,033</td><td>$ 17,919</td><td>$ 974,952</td></tr><tr><td>Net assets acquired</td><td>$ 3,518,829</td><td>$ 134,199</td><td>$ 3,653,028</td></tr></table>

(1) The Company believes the goodwill resulting from the acquisitions is supportable based on anticipated synergies. For CEB, among the factors contributing to the anticipated synergies are a broader market presence, expanded product offerings and market opportunities, and an acceleration of CEB's growth by leveraging Gartner's global infrastructure and best practices in sales productivity and other areas. None of the recorded goodwill is expected to be deductible for tax purposes. The Company recorded certain measurement period adjustments to the CEB preliminary purchase price allocation during 2017, primarily related to tenant improvement incentives and tax liabilities. These adjustments resulted in a net increase to recorded goodwill of approximately $32.0 million. As of December 31, 2017, the allocation of the purchase price for the L2 and CEB acquisitions are preliminary with respect to certain tax matters and contingencies. The Company will resolve these remaining matters and complete the allocation of the purchase price by the end of the accounting measurement period for the respective acquisition.

(2) All of the acquired intangible assets are finite-lived. The determination of the fair value of the finite-lived intangible assets required management judgment and the consideration of a number of factors. In determining the fair values, management primarily relied on income valuation methodologies, in particular discounted cash flow models. The use of discounted cash flow models required the use of estimates, significant among them projected cash flows related to the particular asset; the useful lives of the particular assets; the selection of royalty and discount rates used in the models; and certain published industry benchmark data. In establishing the estimated useful lives of the finite-lived intangible assets, the Company relied on both internally-generated data for similar assets as well as certain published industry benchmark data. We believe the values we have assigned to the finite-lived intangible assets are both reasonable and supportable.

(3) The Company’s financial statements include the operating results of CEB beginning on April 5, 2017, the date of acquisition. CEB’s operating results and the related goodwill are being reported as part of the Company’s Research, Events, and Talent Assessment & Other segments. Had the Company acquired CEB in prior periods, the impact to the Company’s operating results would have been material, and as a result the following pro forma consolidated financial information is presented as if CEB had been acquired by the Company on January 1, 2016 (in thousands, except per share amounts):

<table><tr><td rowspan="2"></td><td colspan="2">Twelve Months Ended December 31,</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td>Pro forma total revenue</td><td>$ 3,726,470</td><td>$ 3,183,070</td></tr><tr><td>Pro forma net income (loss)</td><td>150,167</td><td>(241,423)</td></tr><tr><td>Pro forma basic and diluted income (loss) per share</td><td>$ 1.66</td><td>(2.68)</td></tr></table>

The pro forma results have been prepared in accordance with U.S. GAAP and include the following pro forma adjustments:

(a) An increase in interest expense and amortization of debt issuance costs related to the financing of the CEB acquisition. Note 5 — Debt provides further information regarding the Company's borrowings related to the CEB acquisition;

(b) A change in revenue as a result of the required fair value adjustment to deferred revenue; and



(c) An adjustment for additional depreciation and amortization expense as a result of the preliminary purchase price allocation for finite-lived intangible assets and property, equipment, and leasehold improvements.

(4) The Company's financial statements include the operating results of L2 beginning on March 9, 2017, the acquisition date. L2's operating results were not material to the Company's consolidated operating and segment results for 2017. Had the Company acquired L2 in prior periods, the impact to the Company's operating results would not have been material, and as a result pro forma financial information for L2 for prior periods has not been presented. L2's operating results and the related goodwill are being reported as part of the Company's Research segment.

The Company recognized $158.5 million of acquisition and integration charges in 2017 compared to $42.6 million in 2016. The additional charges during 2017 primarily consisted of higher professional fees, severance, stock-based compensation charges, and accruals for exit costs for certain office space that the Company does not intend to occupy in Arlington, Virginia that was related to the CEB acquisition. The following table presents a summary of the activity related to this space for the year ended December 31, 2017 (in thousands):

<table><tr><td>Liability balance at December 31, 2016</td><td>$ —</td></tr><tr><td>Charges and adjustments</td><td>13,087</td></tr><tr><td>Payments</td><td>(126)</td></tr><tr><td>Liability balance at December 31, 2017</td><td>$ 12,961</td></tr></table>

For the year ended December 31, 2016:

On November 9, 2016, the Company acquired 100% of the outstanding capital stock of Machina Research Limited ("Machina"), a privately-held firm based in London with 16 employees. The Company paid approximately $4.5 million in cash at close. Machina provides clients with subscription-based research that provides strategic insight and market intelligence in areas such as IOT ("Internet of things").

On June 28, 2016, the Company acquired 100% of the outstanding capital stock of Newco 5CL Limited (which operates under the trade name "SCM World"), a privately-held firm based in London with 60 employees, for $34.2 million in cash paid at close. SCM World is a leading cross-industry peer network and learning community providing subscription-based research and conferences for supply chain executives. Net of cash acquired with the business and for cash flow reporting purposes, the Company paid approximately $27.9 million in cash for SCM World. The acquisition of SCM World also included an earn-out provision. The fair value of the earn-out was recorded on the acquisition date as part of the cost of the acquisition and was subsequently adjusted with a charge against earnings.

The Company recorded $32.4 million of goodwill and $5.9 million of amortizable intangible assets for these two acquisitions and an immaterial amount of other assets on a net basis. The operating results and the related goodwill are reported as part of the Company's Research and Events segments. The Company also recorded an additional $1.9 million of additional goodwill in 2016 related to a prior year acquisition.

For the year ended December 31, 2015:

The Company acquired 100% of the outstanding shares of Nubera eBusiness S.L., and Caperrra, Inc., during 2015. Each of these businesses assist clients with selecting business software. The aggregate purchase price was $206.9 in cash. Net of cash acquired with the businesses and for cash flow reporting purposes the Company paid $196.2 million in cash. The Company recorded $79.6 million and $138.1 million of amortizable intangible assets and goodwill, respectively, and $10.8 million in liabilities on a net basis for these acquisitions. The operating results and the related goodwill are reported as part of the Company's Research segment.

## Planned divestiture of the CEB Talent Assessment business

On February 6, 2018, the Company announced that it had reached a definitive agreement to sell its CEB Talent Assessment business for approximately $400.0 million. The agreement was the result of a previously announced process to evaluate strategic alternatives for the business. The purchase price is subject to typical adjustments for, among other things, the working capital of the business. The transaction is expected to close in the first half of 2018 and is subject to customary closing conditions and certain approvals.

The CEB Talent Assessment business was acquired by Gartner as part of the CEB acquisition in 2017 and is a significant portion of the Talent Assessment & Other segment. During the period from the CEB acquisition date to December 31, 2017, the CEB Talent Assessment business contributed approximately $126.1 million of revenue and incurred a pre-tax loss of approximately $19.3 million. Effective with its designation as held-for-sale on October 4, 2017, we discontinued recording depreciation and



amortization on the property, equipment and leasehold improvements and finite-lived intangible assets of this business as required under the accounting rules. The Company also separately classified the related assets and liabilities of this business as held-for-sale in its December 31, 2017 Consolidated Balance Sheet.

The principal components of the held-for-sale assets and liabilities at December 31, 2017 for this business are summarized in the table below (in thousands):

<table><tr><td>Cash and cash equivalents</td><td>$ 10,000</td></tr><tr><td>Fees receivable, net</td><td>50,928</td></tr><tr><td>Goodwill</td><td>212,994</td></tr><tr><td>Intangible assets, net</td><td>250,472</td></tr><tr><td>Other assets, including property, equipment and leasehold improvements, net</td><td>18,571</td></tr><tr><td>Total assets held-for-sale</td><td>$ 542,965</td></tr><tr><td></td><td></td></tr><tr><td>Accounts payable and accrued liabilities</td><td>$ 32,388</td></tr><tr><td>Deferred revenues</td><td>61,450</td></tr><tr><td>Deferred tax liabilities</td><td>47,404</td></tr><tr><td>Other liabilities</td><td>4,603</td></tr><tr><td>Total liabilities held-for-sale</td><td>$ 145,845</td></tr></table>

The sale of the business has been structured as a sale of the shares of the affected subsidiaries with the corresponding deferred taxes being transferred to the buyer upon consummation of the sale. As such, the Company made an accounting policy election to classify the deferred taxes associated with the individual assets and liabilities that are part of the transaction as held-for-sale.

## 3 — OTHER ASSETS

Other assets consist of the following (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">December 31,</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td>Benefit plan-related assets</td><td>$ 97,525</td><td>$ 45,958</td></tr><tr><td>Non-current deferred tax assets</td><td>31,067</td><td>27,275</td></tr><tr><td>Other</td><td>65,150</td><td>14,046</td></tr><tr><td>Total other assets</td><td>$ 193,742</td><td>$ 87,279</td></tr></table>

## 4 — ACCOUNTS PAYABLE, ACCRUED, AND OTHER LIABILITIES

Accounts payable and accrued liabilities consist of the following (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">December 31,</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td>Accounts payable</td><td>$ 49,000</td><td>$ 41,009</td></tr><tr><td>Payroll and employee benefits payable</td><td>120,278</td><td>87,821</td></tr><tr><td>Severance and retention bonus payable</td><td>44,685</td><td>22,425</td></tr><tr><td>Bonus payable</td><td>162,710</td><td>105,549</td></tr><tr><td>Commissions payable</td><td>108,969</td><td>68,273</td></tr><tr><td>Taxes payable</td><td>46,758</td><td>20,378</td></tr><tr><td>Other accrued liabilities</td><td>134,421</td><td>95,316</td></tr><tr><td>Total accounts payable and accrued liabilities</td><td>$ 666,821</td><td>$ 440,771</td></tr></table>



Other liabilities consist of the following (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">December 31,</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td>Non-current deferred revenue</td><td>$ 16,205</td><td>$ 11,289</td></tr><tr><td>Long-term taxes payable</td><td>66,386</td><td>19,737</td></tr><tr><td>Benefit plan-related liabilities</td><td>118,868</td><td>67,747</td></tr><tr><td>Lease-related matters</td><td>115,840</td><td>38,042</td></tr><tr><td>Non-current deferred tax liabilities</td><td>206,338</td><td>22,520</td></tr><tr><td>Other</td><td>54,362</td><td>22,482</td></tr><tr><td>Total other liabilities</td><td>$ 577,999</td><td>$ 181,817</td></tr></table>

## 5 — DEBT

## 2016 Credit Agreement

The Company entered into a term loan and revolving credit facility on June 17, 2016 (the "2016 Credit Agreement"). As discussed below, the 2016 Credit Agreement was amended three times during 2017 in conjunction with the acquisition of CEB. As of December 31, 2017, the 2016 Credit Agreement provides for a $1.5 billion Term loan A facility, a $500.0 million Term loan B facility, and a $1.2 billion revolving credit facility. The 2016 Credit Agreement contains certain customary restrictive loan covenants, including, among others, financial covenants that apply a maximum leverage ratio and a minimum interest expense coverage ratio, and covenants limiting Gartner's ability to incur indebtedness, grant liens, make acquisitions, merge, dispose of assets, pay dividends, repurchase stock, make investments and enter into certain transactions with affiliates. The Company was in full compliance with the covenants as of December 31, 2017.

The Company borrowed a total of approximately $2.8 billion for the CEB acquisition. The Company borrowed $1.675 billion under the 2016 Credit Agreement, which consisted of $900.0 million under an increased Term loan A facility, $500.0 million under a new Term loan B facility, and $275.0 million on its existing revolving credit facility. The $1.675 billion drawn under the 2016 Credit Agreement, along with the funds raised through the issuance of $800.0 million Senior Notes and $300.0 million 364-day Bridge Credit Facility discussed below, were used to fund the CEB acquisition and related costs. As discussed below, the funds borrowed under the 364-day Bridge Credit Facility were completely repaid during 2017.

On January 20, 2017, the Company entered into a first amendment to the 2016 Credit Agreement, which was entered into to permit the acquisition of CEB and the incurrence of additional debt to finance, in part, the acquisition and repay certain debt of CEB, and to modify certain covenants. On March 20, 2017, the Company entered into a second amendment to the 2016 Credit Agreement. The second amendment was also entered into in connection with the acquisition of CEB and was executed primarily to extend the maturity date of the Term loan A facility and revolving credit facility through March 20, 2022 and to revise the interest rate and amortization schedule. On April 5, 2017, in conjunction with the closing of the CEB acquisition, the Company entered into a third amendment to the 2016 Credit Agreement with its lenders which increased the aggregate principal amount of the existing Term loan A facility by $900.0 million and added the Term loan B facility in an aggregate principal amount of $500.0 million.

The Term loan A facility will be repaid in 16 consecutive quarterly installments that commenced on June 30, 2017, plus a final payment to be made on March 20, 2022. The additional amount drawn under the Term loan A facility has the same maturity date and is subject to the same interest, repayment terms, amortization schedules, representations and warranties, affirmative and negative covenants and events of default as the amounts outstanding under such facility prior to entry by the Company into the Incremental Amendment. The revolving credit facility may be borrowed, repaid, and re-borrowed through March 20, 2022, at which time all amounts must be repaid. Amounts borrowed under the Term loan A facility and the revolving credit facility bear interest at a rate equal to, at the Company's option, either:

(i) the greatest of: (x) the Administrative Agent’s prime rate; (y) the average rate on Federal Reserve Board of New York rate plus 1/2 of 1%; and (z) the eurodollar rate (adjusted for statutory reserves) plus 1%, in each case plus a margin equal to between 0.125% and 1.50% depending on Gartner’s consolidated leverage ratio as of the end of the four consecutive fiscal quarters most recently ended; or

(ii) the eurodollar rate (adjusted for statutory reserves) plus a margin equal to between 1.125% and 2.50%, depending on Gartner’s leverage ratio as of the end of the four consecutive fiscal quarters most recently ended.



The Term loan B facility contains representations and warranties, affirmative and negative covenants and events of default that are the same as the Term loan A facility and revolving credit facility, except that a breach of financial maintenance covenants will not result in an event of default under the Term loan B facility unless the lenders under the revolving credit facility and Term loan A facility have accelerated the revolving loans and Term loan A loans and terminated their commitments thereunder. Additionally, the Term loan B facility includes mandatory prepayment requirements related to asset sales (subject to reinvestment), debt incurrence (other than permitted debt) and excess cash flow, subject to certain limitations described therein. The Term loan B facility will mature on April 5, 2024 and amounts outstanding thereunder will bear interest at a rate per annum equal to, at the option of Gartner, (i) adjusted LIBOR plus 2.00% or (ii) an alternate base rate plus 1.00%.

## 364-day Bridge Credit Facility

On April 5, 2017, in conjunction with the acquisition of CEB, the Company entered into a senior unsecured 364-day Bridge Credit Facility in an aggregate principal amount of $300.0 million, which was immediately drawn down to fund a portion of the purchase price associated with the CEB acquisition. The Company repaid the entire $300.0 million of the 364-day Bridge Credit Facility during 2017.

## Senior Notes

On March 30, 2017, in conjunction with the acquisition of CEB, the Company issued $800.0 million aggregate principal amount of 5.125% Senior Notes due 2025 (the "Senior Notes"). The proceeds of the Senior Notes were also used to fund a portion of the purchase price associated with the CEB acquisition.

The Senior Notes were issued at an issue price of 100.00% and bear interest at a fixed rate of 5.125% per annum. Interest on the Senior Notes is payable on April 1 and October 1 of each year. The Senior Notes will mature on April 1, 2025. The Company may redeem some or all of the Senior Notes at any time on or after April 1, 2020 for cash at the redemption prices set forth in the Note Indenture, plus accrued and unpaid interest to, but not including, the redemption date. Prior to April 1, 2020, the Company may redeem up to 40.0% of the aggregate principal amount of the Senior Notes with the proceeds of certain equity offerings at a redemption price of 105.125% plus accrued and unpaid interest to, but not including, the redemption date. In addition, the Company may redeem some or all of the Senior Notes prior to April 1, 2020, at a redemption price of 100% of the principal amount of the Senior Notes plus accrued and unpaid interest to, but not including, the redemption date, plus a "make-whole" premium. If the Company experiences specific kinds of change of control, it will be required to offer to purchase the Senior Notes at a price equal to 101% of the principal amount thereof plus accrued and unpaid interest.

The Senior Notes are the Company’s general unsecured senior obligations, and are effectively subordinated to all of the Company’s existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, structurally subordinated to all existing and future indebtedness and other liabilities of the Company’s non-guarantor subsidiaries, equal in right of payment to all of the Company’s and Company’s guarantor subsidiaries’ existing and future senior indebtedness and senior in right of payment to all of the Company’s future subordinated indebtedness, if any.



The following table summarizes the Company’s total outstanding borrowings (in thousands):

<table><tr><td>Description:</td><td>Balance December 31, 2017</td><td>Balance December 31, 2016</td></tr><tr><td>2016 Credit Agreement - Term loan A facility (1)</td><td>$ 1,429,312</td><td>$ 585,000</td></tr><tr><td>2016 Credit Agreement - Term loan B facility (1)</td><td>496,250</td><td>—</td></tr><tr><td>2016 Credit Agreement - Revolving credit facility (1), (2)</td><td>595,000</td><td>115,000</td></tr><tr><td>Senior notes (3)</td><td>800,000</td><td>—</td></tr><tr><td>Other (4)</td><td>2,500</td><td>2,500</td></tr><tr><td>Principal amount outstanding (5), (6)</td><td>3,323,062</td><td>$ 702,500</td></tr><tr><td>Less: deferred financing fees (7)</td><td>(44,217)</td><td>(8,109)</td></tr><tr><td>Net balance sheet carrying amount</td><td>$ 3,278,845</td><td>$ 694,391</td></tr></table>

(1) The contractual annualized interest rate as of December 31, 2017 on the Term loan A and B facilities was 3.57%, which consisted of a floating Eurodollar base rate of 1.57% plus a margin of 2.00%. The contractual annualized interest rate on the revolving credit facility was 4.07%, which consisted of a floating eurodollar base rate of 1.57% plus a margin of 2.50%. However, the Company has interest rate swap contracts which effectively convert the floating eurodollar base rates on a portion of the amounts outstanding to a fixed base rate.

(2) The Company had $558.0 million of available borrowing capacity on the revolver (not including the expansion feature) as of December 31, 2017.

(3) Consists of an $800.0 million principal amount of Senior Notes outstanding. The Senior Notes pay a fixed rate of 5.125% and have an eight year maturity.

(4) Consists of a $2.5 million State of Connecticut economic development loan with a 3.0% fixed rate of interest. The loan was originated in 2012 and has a 10 year maturity. Principal payments are deferred for the first five years and the loan may be repaid at any point by the Company without penalty.

(5) The average annual interest rate on the Company’s outstanding debt as of December 31, 2017 was 3.91%, including the effect of its interest rate swaps discussed below.

(6) The contractual due dates by year on the debt outstanding as of December 31, 2017 are as follows: $80.0 million in 2018; $107.6 million in 2019; $144.7 million in 2020; $42.6 million in 2021; $1.68 billion in 2022; and approximately $1.27 billion thereafter. In January 2018 the Company repaid $255.0 million of outstandings on the revolver which were not contractually due until 2022.

(7) The deferred financing fees are being amortized to Interest expense, net over the term of the respective debt obligation. During 2017 the Company paid $51.2 million in additional deferred financing fees and recorded a charge of approximately $6.1 million for the write-off of deferred financing fees related to the prior financing arrangement.

## Interest Rate Swaps

As of December 31, 2017, the Company had fixed-for-floating interest rate swap contracts. The swaps have a total notional value of $1.4 billion and mature in 2022. The Company designates the swaps as accounting hedges of the forecasted interest payments on $1.4 billion of the Company’s variable rate borrowings. The Company pays base fixed rates on these swaps ranging from 1.54% to 2.13% and in return receives a floating eurodollar base rate on $1.4 billion of 30-day notional borrowings.

The Company accounts for the interest rate swaps as cash flow hedges in accordance with FASB ASC Topic 815. Since the swaps hedge forecasted interest payments, changes in the fair value of the swaps are recorded in accumulated other comprehensive income (loss), a component of equity, as long as the swaps continue to be highly effective hedges of the designated interest rate risk. Any ineffective portion of change in the fair value of the hedges is recorded in earnings. All of the swaps were highly effective hedges of the forecasted interest payments as of December 31, 2017. The interest rate swaps had a positive fair value of $3.4 million at December 31, 2017 and a negative fair value of $2.3 million as of December 31, 2016. These amounts were deferred and classified in accumulated other comprehensive income (loss), net of tax effect.



## 6 — COMMITMENTS AND CONTINGENCIES

Contractual Lease Commitments. The Company leases various facilities, computer and office equipment, furniture, and other assets under non-cancelable operating lease agreements expiring between 2018 and 2032. The future minimum annual cash payments under these operating lease agreements as of December 31, 2017 was as follows (in thousands):

<table><tr><td colspan="2">Year ended December 31,</td></tr><tr><td>2018</td><td>$ 129,570</td></tr><tr><td>2019</td><td>121,543</td></tr><tr><td>2020</td><td>113,612</td></tr><tr><td>2021</td><td>106,371</td></tr><tr><td>2022</td><td>97,225</td></tr><tr><td>Thereafter</td><td>727,405</td></tr><tr><td>Total minimum lease payments (1)</td><td>$ 1,295,726</td></tr></table>

(1) Excludes approximately $284.0 million of sublease income.

Legal Matters. The Company is involved in legal proceedings and litigation arising in the ordinary course of business. We believe that the potential liability, if any, in excess of amounts already accrued from all proceedings, claims and litigation will not have a material effect on our financial position, cash flows, or results of operations when resolved in a future period.

Indemnifications. The Company has various agreements that may obligate us to indemnify the other party with respect to certain matters. Generally, these indemnification clauses are included in contracts arising in the normal course of business under which we customarily agree to hold the other party harmless against losses arising from a breach of representations related to such matters as title to assets sold and licensed or certain intellectual property rights. It is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of the Company’s obligations and the unique facts of each particular agreement. Historically, payments made by us under these agreements have not been material. As of December 31, 2017, the Company did not have any material payment obligations under any such indemnification agreements.



## 7 — STOCKHOLDERS' EQUITY

Common stock. Holders of Gartner’s Common Stock, par value $.0005 per share (“Common Stock”) are entitled to one vote per share on all matters to be voted by stockholders. The Company does not currently pay cash dividends on its Common Stock. Also, our 2016 Credit Agreement contains a negative covenant which may limit our ability to pay dividends. The following table summarizes transactions relating to our Common Stock for the three years ended December 31, 2017:

<table><tr><td></td><td>Issued Shares</td><td>Treasury Stock Shares</td></tr><tr><td>Balance at December 31, 2014</td><td>156,234,415</td><td>68,713,890</td></tr><tr><td>Issuances under stock plans</td><td>—</td><td>(1,003,746)</td></tr><tr><td>Purchases for treasury (1)</td><td>—</td><td>6,186,101</td></tr><tr><td>Balance at December 31, 2015</td><td>156,234,415</td><td>73,896,245</td></tr><tr><td>Issuances under stock plans</td><td>—</td><td>(923,696)</td></tr><tr><td>Purchases for treasury (1)</td><td>—</td><td>610,623</td></tr><tr><td>Balance at December 31, 2016</td><td>156,234,415</td><td>73,583,172</td></tr><tr><td>Issued in connection with the acquisition of CEB</td><td>7,367,652</td><td>—</td></tr><tr><td>Issuances under stock plans</td><td>—</td><td>(1,186,150)</td></tr><tr><td>Purchases for treasury (1)</td><td>—</td><td>382,183</td></tr><tr><td>Balance at December 31, 2017</td><td>163,602,067</td><td>72,779,205</td></tr></table>

(1) The Company used a total of $41.3 million, $59.0 million, and $509.0 million in cash for share repurchases in 2017, 2016, and 2015, respectively.

Share Issuance Related to the Acquisition of CEB. On April 5, 2017, the Company issued 7.4 million of its common shares at a fair value of $109.65 per common share as part of the consideration for the CEB acquisition. Note 2 — Acquisitions and Divestiture provides additional information regarding the CEB acquisition. The fair value of the Company's common stock was determined based on an average of the high and low prices of the common stock as reported by the New York Stock Exchange on April 5, 2017, the date of the acquisition.

Share repurchase authorization. The Company has a $1.2 billion board approved authorization to repurchase the Company's common stock, of which $1.1 billion remained available as of December 31, 2017. The Company may repurchase its common stock from time to time in amounts and at prices the Company deems appropriate, subject to the availability of stock, prevailing market conditions, the trading price of the stock, the Company's financial performance and other conditions. Repurchases may be made through open market purchases, private transactions or other transactions and will be funded from cash on hand and borrowings under the Company's credit arrangement.

Accumulated Other Comprehensive Income (Loss), Net. The following tables disclose information about changes in Accumulated Other Comprehensive Income (Loss) ("AOCL/I"), a component of equity, by component and the related amounts reclassified out of AOCL/I to income during the years indicated (net of tax, in thousands) (1):

## 2017

<table><tr><td></td><td>Interest Rate Swaps</td><td>Defined Benefit Pension Plans</td><td>Foreign Currency Translation Adjustments</td><td>Total</td></tr><tr><td>Balance - December 31, 2016</td><td>$ (1,409)</td><td>$ (5,797)</td><td>$ (42,477)</td><td>$ (49,683)</td></tr><tr><td>Changes during the period:</td><td></td><td></td><td></td><td></td></tr><tr><td>Change in AOCL/I before reclassifications to income</td><td>(1,492)</td><td>—</td><td>47,363</td><td>45,871</td></tr><tr><td>Reclassifications from AOCL/I to income during the period (2), (3)</td><td>5,384</td><td>(64)</td><td>—</td><td>5,320</td></tr><tr><td>Other comprehensive income (loss) for the period</td><td>3,892</td><td>(64)</td><td>47,363</td><td>51,191</td></tr><tr><td>Balance - December 31, 2017</td><td>$ 2,483</td><td>$ (5,861)</td><td>$ 4,886</td><td>$ 1,508</td></tr></table>



<table><tr><td></td><td>Interest Rate Swaps</td><td>Defined Benefit Pension Plans</td><td>Foreign Currency Translation Adjustments</td><td>Total</td></tr><tr><td>Balance - December 31, 2015</td><td>$ (3,079)</td><td>$ (4,832)</td><td>$ (36,491)</td><td>$ (44,402)</td></tr><tr><td>Changes during the period:</td><td></td><td></td><td></td><td></td></tr><tr><td>Change in AOCL/I before reclassifications to income</td><td>(2,902)</td><td>(1,113)</td><td>(5,986)</td><td>(10,001)</td></tr><tr><td>Reclassifications from AOCL/I to income during the period (2), (3)</td><td>4,572</td><td>148</td><td>—</td><td>4,720</td></tr><tr><td>Other comprehensive income (loss) for the period</td><td>1,670</td><td>(965)</td><td>(5,986)</td><td>(5,281)</td></tr><tr><td>Balance - December 31, 2016</td><td>$ (1,409)</td><td>$ (5,797)</td><td>$ (42,477)</td><td>$ (49,683)</td></tr></table>

(1) Amounts in parentheses represent debits (deferred losses).

(2) The reclassifications related to interest rate swaps (cash flow hedges) were recorded in Interest expense, net of tax effect. See Note 11 – Derivatives and Hedging for information regarding the hedges.

(3) The reclassifications related to defined benefit pension plans were recorded in Selling, general and administrative expense, net of tax effect. See Note 13 – Employee Benefits for information regarding the Company’s defined benefit pension plans.

## 8 — STOCK-BASED COMPENSATION

The Company grants stock-based compensation awards as an incentive for employees and directors to contribute to the Company’s long-term success. The Company currently awards stock-settled stock appreciation rights, service-based and performance-based restricted stock units, and common stock equivalents. At December 31, 2017, the Company had 5.7 million shares of its common stock, par value $.0005 per share, (the "Common Stock") available for stock-based compensation awards under its 2014 Long-Term Incentive Plan.

The Company accounts for stock-based compensation awards in accordance with FASB ASC Topics 505 and 718 and SEC Staff Accounting Bulletins No. 107 and No. 110. Stock-based compensation expense is based on the fair value of the award on the date of grant. The Company recognizes stock-based compensation expense over the period that the related service is performed, which is generally the same as the vesting period of the underlying award. Currently, the Company issues treasury shares upon the exercise, release or settlement of stock-based compensation awards.

Determining the appropriate fair value model and calculating the fair value of stock-based compensation awards requires the use of certain complex and subjective assumptions, including the expected life of a stock-based compensation award and Common Stock price volatility. In addition, determining the appropriate periodic stock-based compensation expense requires management to estimate the likelihood of the achievement of certain performance targets. The assumptions used in calculating the fair values of stock-based compensation awards and the related periodic expense represent management’s best estimates, which involve inherent uncertainties and the application of judgment. As a result, if circumstances change and the Company deems it necessary in the future to modify the assumptions it made or to use different assumptions, or if the quantity and nature of the Company’s stock-based compensation awards changes, then the amount of expense may need to be adjusted and future stock-based compensation expense could be materially different from what has been recorded in the current period.

## Stock-Based Compensation Expense

The Company recognized the following stock-based compensation expense by award type and expense category line item during the years ended December 31 (in millions):

<table><tr><td>Award type</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Stock appreciation rights</td><td>$ 5.6</td><td>$ 5.6</td><td>$ 5.7</td></tr><tr><td>Restricted stock units</td><td>72.6</td><td>40.4</td><td>39.8</td></tr><tr><td>Common stock equivalents</td><td>0.7</td><td>0.7</td><td>0.6</td></tr><tr><td>Total (1)</td><td>$ 78.9</td><td>$ 46.7</td><td>$ 46.1</td></tr></table>



<table><tr><td>Expense category line item</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Cost of services and product development</td><td>$ 25.8</td><td>$ 21.9</td><td>$ 20.6</td></tr><tr><td>Selling, general and administrative</td><td>35.5</td><td>24.8</td><td>25.5</td></tr><tr><td>Acquisition and integration charges (2)</td><td>17.6</td><td>—</td><td>—</td></tr><tr><td>Total (1)</td><td>$ 78.9</td><td>$ 46.7</td><td>$ 46.1</td></tr></table>

(1) Includes charges of $22.9 million, $19.4 million and $20.1 million during 2017, 2016 and 2015, respectively, for awards to retirement-eligible employees. Those awards vest on an accelerated basis.

(2) These charges are primarily the result of the acceleration of the vesting of certain restricted stock units related to the CEB acquisition.

As of December 31, 2017, the Company had $79.9 million of total unrecognized stock-based compensation cost, which is expected to be expensed over the remaining weighted average service period of approximately 2.4 years.

## Stock-Based Compensation Awards

The disclosures presented below provide information regarding the Company’s stock-based compensation awards, all of which have been classified as equity awards in accordance with FASB ASC Topic 505.

## Stock Appreciation Rights

Stock-settled stock appreciation rights ("SARs") permit the holder to participate in the appreciation of the value of the Common Stock. After the applicable vesting criteria have been satisfied, SARs are settled in shares of Common Stock upon exercise by the employee. SARs vest ratably over a four-year service period and expire seven years from the date of grant. The fair value of a SARs award is recognized as compensation expense on a straight-line basis over four years. SARs have only been awarded to the Company’s executive officers.

When SARs are exercised, the number of shares of Common Stock issued is calculated as follows: (1) the total proceeds from the exercise of the SARs award (calculated as the closing price of the Common Stock as reported on the New York Stock Exchange on the date of exercise less the exercise price of the SARs award, multiplied by the number of SARs exercised) is divided by (2) the closing price of the Common Stock on the date of exercise. The Company withholds a portion of the shares of the Common Stock issued upon exercise to satisfy statutory tax withholding requirements. SARs recipients do not have any stockholder rights until the shares of Common Stock are issued in respect of the award, which is subject to the prior satisfaction of the vesting and other criteria relating to such grants.

The following table summarizes changes in SARs outstanding during the year ended December 31, 2017:

<table><tr><td></td><td>Stock Appreciation ("SARs") (in millions)</td><td>Per Share Weighted Average Exercise Price</td><td>Per Share Weighted Average Grant Date Fair Value</td><td>Weighted Average Contractual Term (Years)</td></tr><tr><td>Outstanding at December 31, 2016</td><td>1.3</td><td>$ 66.22</td><td>$ 15.77</td><td>4.40 years</td></tr><tr><td>Granted</td><td>0.3</td><td>99.07</td><td>22.02</td><td>6.10 years</td></tr><tr><td>Forfeited</td><td>(0.1)</td><td>85.28</td><td>10.49</td><td>n/a</td></tr><tr><td>Exercised</td><td>(0.3)</td><td>52.72</td><td>14.85</td><td>n/a</td></tr><tr><td>Outstanding at December 31, 2017 (1) (2)</td><td>1.2</td><td>$ 76.73</td><td>$ 17.35</td><td>4.28 years</td></tr><tr><td>Vested and exercisable at December 31, 2017 (2)</td><td>0.5</td><td>$ 65.67</td><td>$ 15.69</td><td>3.22 years</td></tr></table>

n/a = not applicable

(1) As of December 31, 2017, 0.7 million of the total SARs outstanding were unvested. The Company expects that substantially all of those unvested awards will vest in future periods.

(2) As of December 31, 2017, the total SARs outstanding had an intrinsic value of $55.0 million. On such date, SARs vested and exercisable had an intrinsic value of $30.2 million.



The fair value of a SARs award is determined on the date of grant using the Black-Scholes-Merton valuation model with the following weighted average assumptions for the years ended December 31:

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Expected dividend yield (1)</td><td>—%</td><td>—%</td><td>—%</td></tr><tr><td>Expected stock price volatility (2)</td><td>22%</td><td>22%</td><td>24%</td></tr><tr><td>Risk-free interest rate (3)</td><td>1.8%</td><td>1.1%</td><td>1.5%</td></tr><tr><td>Expected life in years (4)</td><td>4.53</td><td>4.39</td><td>4.41</td></tr></table>

(1) The expected dividend yield assumption was based on both the Company's historical and anticipated dividend payouts. Historically, the Company has not paid cash dividends on its Common Stock.

(2) The determination of expected stock price volatility was based on both historical Common Stock prices and implied volatility from publicly traded options in the Common Stock.

(3) The risk-free interest rate was based on the yield of a U.S. Treasury security with a maturity similar to the expected life of the award.

(4) The expected life represents the Company’s estimate of the weighted average period of time the SARs are expected to be outstanding (that is, the period between the service inception date and the expected exercise date).

## Restricted Stock Units

Restricted stock units ("RSUs") give the awardee the right to receive shares of Common Stock when the vesting conditions are met and certain restrictions lapse. Each RSU that vests entitles the awardee to one share of Common Stock. RSU awardees do not have any of the rights of a Gartner stockholder, including voting rights and the right to receive dividends and distributions, until the shares are released. The fair value of an RSU award is determined on the date of grant based on the closing price of the Common Stock as reported on the New York Stock Exchange on that date. Service-based RSUs vest ratably over four years and are expensed on a straight-line basis over the vesting period. Performance-based RSUs are subject to the satisfaction of both performance and service conditions, vest ratably over four years and are expensed on an accelerated basis over the vesting period.

The following table summarizes the changes in RSUs outstanding during the year ended December 31, 2017:

<table><tr><td></td><td>Restricted Stock Units (&quot;RSUs&quot;) (in millions)</td><td>Per Share Weighted Average Grant Date Fair Value</td></tr><tr><td>Outstanding at December 31, 2016</td><td>1.3</td><td>$ 73.19</td></tr><tr><td>Granted (1) (2)</td><td>1.1</td><td>105.55</td></tr><tr><td>Vested and released</td><td>(0.8)</td><td>79.60</td></tr><tr><td>Forfeited</td><td>(0.1)</td><td>91.03</td></tr><tr><td>Outstanding at December 31, 2017 (3) (4)</td><td>1.5</td><td>$ 91.47</td></tr></table>

(1) The 1.1 million of RSUs granted during 2017 consisted of 0.2 million of performance-based RSUs awarded to executives and 0.9 million of service-based RSUs awarded to executives, non-executive employees and non-management board members. The 0.2 million of performance-based RSUs represents the target amount of the grant for the year, which is tied to the increase in heritage Gartner's total contract value for 2017. Total contract value for this determination represents the value attributable to all of heritage Gartner's subscription-related revenue contracts. The final number of performance-based RSUs awarded could range from 0% to 200% of the target amount. The actual increase in heritage Gartner's contract value for 2017 as measured on December 31, 2017 yielded approximately 186% of the target amount. The incremental awards based on the actual achievement under the 2017 grant will be issued in 2018.

(2) Includes 0.6 million of RSUs awarded to employees that joined Gartner as a result of the CEB acquisition.

(3) The Company expects that substantially all of the RSUs outstanding will vest in future periods.

(4) As of December 31, 2017, the weighted average remaining contractual term of the RSUs outstanding was approximately 1.2 years.



Common stock equivalents ("CSEs") are convertible into Common Stock. Each CSE entitles the holder to one share of Common Stock. Members of our Board of Directors receive their directors' fees in CSEs unless they opt to receive up to 50% of those fees in cash. Generally, CSEs have no defined term and are converted into shares of Common Stock when service as a director terminates unless the director has elected an accelerated release. The fair value of a CSE award is determined on the date of grant based on the closing price of the Common Stock as reported on the New York Stock Exchange on that date. CSEs vest immediately and, as a result, they are recorded as expense on the date of grant. The following table summarizes the changes in CSEs outstanding during the year ended December 31, 2017:

<table><tr><td></td><td>Common Stock Equivalents (“CSEs”)</td><td>Per Share Weighted Average Grant Date Fair Value</td></tr><tr><td>Outstanding at December 31, 2016</td><td>107,338</td><td>$ 20.74</td></tr><tr><td>Granted</td><td>5,852</td><td>120.28</td></tr><tr><td>Converted to shares of Common Stock upon grant</td><td>(3,177)</td><td>119.10</td></tr><tr><td>Outstanding at December 31, 2017</td><td>110,013</td><td>$ 23.19</td></tr></table>

## Employee Stock Purchase Plan

The Company has an employee stock purchase plan (the “ESP Plan”) under which eligible employees are permitted to purchase shares of Common Stock through payroll deductions, which may not exceed 10% of an employee’s compensation, or $23,750 in any calendar year, at a price equal to 95% of the closing price of the Common Stock as reported on the New York Stock Exchange at the end of each offering period. As of December 31, 2017, the Company had 0.8 million shares available for purchase under the ESP Plan. The ESP Plan is considered non-compensatory under FASB ASC Topic 718 and, as a result, the Company does not record stock-based compensation expense for employee share purchases. The Company received $11.7 million, $9.3 million and $7.5 million in cash from employee share purchases under the ESP Plan during 2017, 2016 and 2015, respectively.

## 9 — 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 for the period. Diluted EPS reflects the potential dilution of securities that could share in earnings. When the impact of common share equivalents is anti-dilutive, they are excluded from the calculation.

The following table sets forth the reconciliation of the basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share amounts):

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Numerator:</td><td></td><td></td><td></td></tr><tr><td>Net income used for calculating basic and diluted earnings per common share</td><td>$ 3,279</td><td>$ 193,582</td><td>$ 175,635</td></tr><tr><td>Denominator: (1)</td><td></td><td></td><td></td></tr><tr><td>Weighted average number of common shares used in the calculation of basic earnings per share</td><td>88,466</td><td>82,571</td><td>83,852</td></tr><tr><td>Common share equivalents associated with stock-based compensation plans</td><td>1,324</td><td>1,249</td><td>1,204</td></tr><tr><td>Shares used in the calculation of diluted earnings per share</td><td>89,790</td><td>83,820</td><td>85,056</td></tr><tr><td>Earnings per share: (2)</td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$ 0.04</td><td>$ 2.34</td><td>$ 2.09</td></tr><tr><td>Diluted</td><td>$ 0.04</td><td>$ 2.31</td><td>$ 2.06</td></tr></table>

(1) The Company repurchased 0.4 million, 0.6 million and 6.2 million shares of its Common Stock in 2017, 2016 and 2015, respectively.

(2) Both basic and diluted earnings per share for 2017 include a one-time benefit of approximately $0.66 per share related to the Tax Cuts and Jobs Act of 2017. Note 10 — Income Taxes provides information related to the Tax Cuts and Jobs Act of 2017.



The following table presents the number of common share equivalents that were not included in the computation of diluted EPS in the table above because the effect would have been anti-dilutive. During periods with net income, these common share equivalents were anti-dilutive because their exercise price was greater than the average market value of a share of Common Stock during the period.

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Anti-dilutive common share equivalents as of December 31 (in millions):</td><td>0.3</td><td>0.2</td><td>0.3</td></tr><tr><td>Average market price per share of Common Stock during the year</td><td>$ 116.09</td><td>$ 92.58</td><td>$ 86.02</td></tr></table>



## 10 — INCOME TAXES

The following is a summary of the components of the Company's (loss) income before income taxes for the years ended December 31 (in thousands):

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>U.S.</td><td>$ (135,757)</td><td>$ 182,178</td><td>$ 165,848</td></tr><tr><td>Non-U.S.</td><td>7,940</td><td>106,253</td><td>106,363</td></tr><tr><td>(Loss) income before income taxes</td><td>$ (127,817)</td><td>$ 288,431</td><td>$ 272,211</td></tr></table>

The expense for income taxes on the above income consists of the following components (in thousands):

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Current tax expense:</td><td></td><td></td><td></td></tr><tr><td>U.S. federal</td><td>$ 48,339</td><td>$ 58,616</td><td>$ 48,801</td></tr><tr><td>State and local</td><td>434</td><td>11,292</td><td>10,300</td></tr><tr><td>Foreign</td><td>38,602</td><td>27,536</td><td>23,225</td></tr><tr><td>Total current</td><td>87,375</td><td>97,444</td><td>82,326</td></tr><tr><td>Deferred tax (benefit) expense:</td><td></td><td></td><td></td></tr><tr><td>U.S. federal</td><td>(176,046)</td><td>(61)</td><td>(884)</td></tr><tr><td>State and local</td><td>(14,363)</td><td>(349)</td><td>(702)</td></tr><tr><td>Foreign</td><td>(25,898)</td><td>(1,626)</td><td>1,550</td></tr><tr><td>Total deferred</td><td>(216,307)</td><td>(2,036)</td><td>(36)</td></tr><tr><td>Total current and deferred</td><td>(128,932)</td><td>95,408</td><td>82,290</td></tr><tr><td>Benefit (expense) relating to interest rate swaps used to increase (decrease) equity</td><td>(2,477)</td><td>(1,113)</td><td>893</td></tr><tr><td>Benefit from stock transactions with employees used to increase equity</td><td>46</td><td>52</td><td>13,960</td></tr><tr><td>Benefit (expense) relating to defined-benefit pension adjustments used to increase (decrease) equity</td><td>267</td><td>502</td><td>(567)</td></tr><tr><td>Total tax (benefit) expense</td><td>$ (131,096)</td><td>$ 94,849</td><td>$ 96,576</td></tr></table>

Long-term deferred tax assets and liabilities are comprised of the following (in thousands):

<table><tr><td rowspan="2"></td><td colspan="2">December 31,</td></tr><tr><td>2017</td><td>2016</td></tr><tr><td>Accrued liabilities</td><td>$ 80,557</td><td>$ 62,439</td></tr><tr><td>Loss and credit carryforwards</td><td>59,502</td><td>7,766</td></tr><tr><td>Assets relating to equity compensation</td><td>24,874</td><td>25,569</td></tr><tr><td>Other assets</td><td>30,236</td><td>6,652</td></tr><tr><td>Gross deferred tax assets</td><td>195,169</td><td>102,426</td></tr><tr><td>Property, equipment, and leasehold improvements</td><td>(962)</td><td>(11,796)</td></tr><tr><td>Intangible assets</td><td>(372,542)</td><td>(43,548)</td></tr><tr><td>Prepaid expenses</td><td>(35,126)</td><td>(32,971)</td></tr><tr><td>Other liabilities</td><td>(6,584)</td><td>(7,925)</td></tr><tr><td>Gross deferred tax liabilities</td><td>(415,214)</td><td>(96,240)</td></tr><tr><td>Valuation allowance</td><td>(3,192)</td><td>(1,431)</td></tr><tr><td>Net deferred tax (liabilities) assets</td><td>$ (223,237)</td><td>$ 4,755</td></tr></table>



Net deferred tax assets and net deferred tax liabilities were $30.5 million and $253.7 million as of December 31, 2017, respectively, and $27.3 million and $22.5 million as of December 31, 2016, respectively. These amounts are primarily reported in Other assets and Other liabilities in the Consolidated Balance Sheets. Management has concluded it is more likely than not that the reversal of deferred tax liabilities and results of future operations will generate sufficient taxable income to realize the deferred tax assets, net of the valuation allowance at December 31, 2017.

The valuation allowances of $3.2 million as of December 31, 2017 and $1.4 million as of 2016, primarily relate to net operating losses which are not likely to be realized.

As of December 31, 2017, the Company had state and local tax net operating loss carryforwards of $91.5 million, of which $0.9 million expire within one to five years and $19.9 million expire within six to fifteen years and $70.7 million expire within sixteen to twenty years. The Company also had state tax credits of $2.0 million, a majority of which will expire in five to six years. As of December 31, 2017, the Company had non-U.S. net operating loss carryforwards of $16.0 million, of which $0.5 million expire over the next 20 years and $15.5 million can be carried forward indefinitely. In addition, the Company also had foreign tax credit carryforwards of $59.0 million, all of which will expire at the end of 2027. These amounts have been reduced for associated unrecognized tax benefits, consistent with FASB ASU No. 2013-11.

As of December 31, 2017, the Company recorded deferred tax assets for federal and state unrealized capital losses of $62.9 million resulting from held-for-sale accounting for the CEB Talent Assessment business.

The differences between the U.S. federal statutory income tax rate and the Company’s effective tax rate on income before income taxes for the years ended December 31 follow:

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Statutory tax rate</td><td>35.0%</td><td>35.0%</td><td>35.0%</td></tr><tr><td>State income taxes, net of federal benefit</td><td>3.6</td><td>2.4</td><td>3.5</td></tr><tr><td>Effect of non-U.S. operations</td><td>5.9</td><td>(6.1)</td><td>(6.9)</td></tr><tr><td>Record (release) reserve for tax contingencies</td><td>(2.8)</td><td>3.2</td><td>1.7</td></tr><tr><td>Law changes</td><td>41.8</td><td>—</td><td>(0.2)</td></tr><tr><td>Excess tax benefits from stock based compensation</td><td>11.0</td><td>(3.8)</td><td>—</td></tr><tr><td>Nondeductible acquisition costs</td><td>(7.9)</td><td>2.6</td><td>0.8</td></tr><tr><td>Nondeductible meals and entertainment costs</td><td>(3.5)</td><td>1.1</td><td>1.1</td></tr><tr><td>Capital loss</td><td>13.1</td><td>—</td><td>—</td></tr><tr><td>Record (release) valuation allowance</td><td>3.0</td><td>(0.2)</td><td>0.5</td></tr><tr><td>Other items, net</td><td>3.4</td><td>(1.3)</td><td>—</td></tr><tr><td>Effective tax rate</td><td>102.6%</td><td>32.9%</td><td>35.5%</td></tr></table>

The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. Among other things, the Act reduces the U.S. federal corporation tax rate from 35% to 21%, requires companies to pay a one-time transition tax on accumulated deferred foreign income (“ADFI”) of foreign subsidiaries that were previously tax deferred and creates a new tax on global intangible low-taxed income (“GILTI”) attributable to foreign subsidiaries. As of December 31, 2017, we have not completed our accounting for the tax effects of enactment of the Act because all of the necessary information is not currently available, prepared or analyzed. As such, the amount we have recorded are provisional estimates and as permitted by SEC per Staff Accounting Bulletin No. 118, we will continue to assess the enactment of the Act and may record additional provisional amount or adjustments to provisional amounts during fiscal year 2018. We expect to complete the accounting for these impacts of tax reform by the fourth quarter of 2018 as we complete our analysis and receive additional guidance from the Internal Revenue Service pertaining to the Act.

We remeasured U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% and recorded a provisional amount which reduced our income tax expense by $123.2 million. However, we are still finalizing purchase accounting for the acquisition of CEB, analyzing certain aspects of the Act and refining our deferred tax calculations, which could affect the measurement of these balances or give rise to new deferred tax amounts.

The tax on ADFI is based on our total post-1986 earnings and profits ("E&P") of our foreign subsidiaries that were previously deferred from US income taxes. We recorded a $63.6 million provisional amount for this one-time transition tax liability, resulting in an increase in income tax expense of $63.6 million. We have not yet completed our calculation of the tax on ADFI given pending



regulatory guidance and the need to obtain, prepare and analyze various information relevant to calculation including, but not limited to, our post-1986 E&P, foreign taxes and amounts held in cash or other specified assets on various measurement dates.

As disclosed in Note 1 - Business and Significant Accounting Policies, the Company adopted FASB ASU No. 2016-09 in 2016. The effect of the adoption reduced the provision for income taxes by $12.9 million and $10.0 million for the years ended December 31, 2017 and 2016, respectively.

In July 2015, the United States Tax Court (the “Court”) issued an opinion relating to the treatment of stock-based compensation expense in an inter-company cost-sharing arrangement. In its opinion, the Court held that affiliated companies may exclude stock-based compensation expense from their cost-sharing arrangement. The Internal Revenue Service is appealing the decision. Because of uncertainty related to the final resolution of this litigation and the recognition of potential benefits to the Company, the Company has not recorded any financial statement benefit associated with this decision. The Company will monitor developments related to this case and the potential impact of those developments on the Company’s consolidated financial statements.

As of December 31, 2017 and December 31, 2016, the Company had unrecognized tax benefits of $60.3 million and $37.1 million, respectively. The increase is primarily attributable to pre-acquisition unrecognized tax benefits of CEB for positions taken with respect to intercompany transactions and state income tax positions. The unrecognized tax benefits as of December 31, 2017 related primarily to the exclusion of stock-based compensation expense from the Company’s cost sharing agreement, utilization of certain tax attributes, state income tax positions, the ability to realize certain refund claims, and intercompany transactions. It is reasonably possible that unrecognized tax benefits will be decreased by $6.3 million within the next 12 months due to anticipated closure of audits and the expiration of certain statutes of limitation.

Included in the balance of unrecognized tax benefits at December 31, 2017 are potential benefits of $57.1 million that if recognized would reduce the effective tax rate on income from continuing operations. Also included in the balance of unrecognized tax benefits as of December 31, 2017 are potential benefits of $3.2 million that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, for the years ended December 31 (in thousands):

<table><tr><td></td><td>2017</td><td>2016</td></tr><tr><td>Beginning balance</td><td>$ 37,099</td><td>$ 25,911</td></tr><tr><td>Additions based on tax positions related to the current year</td><td>10,883</td><td>7,086</td></tr><tr><td>Additions for tax positions of prior years</td><td>24,299</td><td>6,443</td></tr><tr><td>Reductions for tax positions of prior years</td><td>(10,613)</td><td>(496)</td></tr><tr><td>Reductions for expiration of statutes</td><td>(1,368)</td><td>(1,006)</td></tr><tr><td>Settlements</td><td>(1,769)</td><td>(544)</td></tr><tr><td>Change in foreign currency exchange rates</td><td>1,738</td><td>(295)</td></tr><tr><td>Ending balance</td><td>$ 60,269</td><td>$ 37,099</td></tr></table>

The Company accrues interest and penalties related to unrecognized tax benefits in its income tax provision. As of December 31, 2017 and 2016, the Company had $6.4 million and $4.3 million, respectively, of accrued interest and penalties related to unrecognized tax benefits. These amounts are in addition to the unrecognized tax benefits disclosed above. The total amount of interest and penalties recognized in the income tax provision for both the years ended December 31, 2017 and December 31, 2016 was $0.9 million.

The number of years with open statutes of limitation varies depending on the tax jurisdiction. The Company’s statutes are open with respect to the U.S. federal jurisdiction for 2014 and forward, and India for 2003 and forward. For other major taxing jurisdictions including the U.S. states, the United Kingdom, Canada, Japan, France, and Ireland, the Company's statutes vary and are open as far back as 2012.

Under U.S. GAAP rules, no provision for income taxes that may result from the remittance of earnings held overseas is required if the Company has the ability and intent to indefinitely reinvest such funds overseas. While our current plans do not demonstrate a need to repatriate accumulated undistributed foreign earnings to fund our U.S. operations or otherwise satisfy the liquidity needs of our U.S. operations, the Company has not asserted its intention to indefinitely reinvest certain accumulated undistributed foreign earnings of CEB. As a result of tax planning, approximately $12.0 million of deferred tax liability previously recorded in purchase



accounting for the estimated tax that could result from the remittance of these earnings was reversed in the current quarter and related goodwill reduced. The Company continues to assert its intention to reinvest all other accumulated undistributed foreign earnings in our non-U.S. operations, except in instances in which the repatriation of those earnings would result in minimal additional tax. Consequently, the Company has not recognized income tax expense that would result from the remittance of these earnings. The accumulated undistributed earnings of non-U.S. subsidiaries were approximately $194.0 million as of December 31, 2017. As a result of the ACT, the income tax that would be payable if such earnings were not indefinitely invested is estimated at this time to be minimal.

## 11 — DERIVATIVES AND HEDGING

The Company enters into a limited number of derivative contracts to mitigate the cash flow risk associated with changes in interest rates on variable rate debt and changes in foreign exchange rates on forecasted foreign currency transactions. The Company accounts for its outstanding derivative contracts in accordance with FASB ASC Topic No. 815, which requires all derivatives, including derivatives designated as accounting hedges, to be recorded on the balance sheet at fair value. The following tables provide information regarding the Company’s outstanding derivatives contracts as of the dates indicated (in thousands, except for number of outstanding contracts):

## December 31, 2017

<table><tr><td>Derivative Contract Type</td><td>Number of Outstanding Contracts</td><td>Notional Amounts</td><td>Fair Value Asset (Liability) (3)</td><td>Balance Sheet Line Item</td><td>Unrealized Gain Recorded in OCI</td></tr><tr><td>Interest rate swaps (1)</td><td>5</td><td>1,400,000</td><td>3,412</td><td>Other assets</td><td>2,483</td></tr><tr><td>Foreign currency forwards (2)</td><td>137</td><td>686,764</td><td>448</td><td>Other current assets</td><td>—</td></tr><tr><td>Total</td><td>142</td><td>2,086,764</td><td>3,860</td><td></td><td>2,483</td></tr></table>

## December 31, 2016

<table><tr><td>Derivative Contract Type</td><td>Number of Outstanding Contracts</td><td>Notional Amounts</td><td>Fair Value Asset (Liability) (3)</td><td>Balance Sheet Line Item</td><td>Unrealized Loss Recorded in OCI</td></tr><tr><td>Interest rate swaps (1)</td><td>3</td><td>700,000</td><td>(2,349)</td><td>Other liabilities</td><td>(1,409)</td></tr><tr><td>Foreign currency forwards (2)</td><td>84</td><td>86,946</td><td>(320)</td><td>Accrued liabilities</td><td>—</td></tr><tr><td>Total</td><td>87</td><td>786,946</td><td>(2,669)</td><td></td><td>(1,409)</td></tr></table>

(1) The swaps have been designated and are accounted for as cash flow hedges of the forecasted interest payments on borrowings. As a result, changes in the fair value of the swaps are deferred and are recorded in AOCL/I, net of tax effect (see Note 5 — Debt for additional information).

(2) The Company has foreign exchange transaction risk since it typically enters into transactions in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. The Company enters into short-term foreign currency forward exchange contracts to mitigate the cash flow risk associated with changes in foreign currency rates on forecasted foreign currency transactions. These contracts are accounted for at fair value with realized and unrealized gains and losses recognized in Other income, net since the Company does not designate these contracts as hedges for accounting purposes. All of the outstanding contracts at December 31, 2017 matured by the end of January 2018.

(3) See Note 12 — Fair Value Disclosures for the determination of the fair value of these instruments.

At December 31, 2017, all of the Company’s derivative counterparties were investment grade financial institutions. The Company did not have any collateral arrangements with its derivative counterparties, and none of the derivative contracts contained credit-risk related contingent features. The following table provides information regarding amounts recognized in the Consolidated Statements of Operations for derivative contracts for the years ended December 31 (in millions):

<table><tr><td>Amount recorded in:</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Interest expense (1)</td><td>$ 7.9</td><td>$ 7.6</td><td>$ 8.5</td></tr><tr><td>Other (gain) loss, net (2)</td><td>(0.8)</td><td>0.3</td><td>0.1</td></tr><tr><td>Total expense</td><td>$ 7.1</td><td>$ 7.9</td><td>$ 8.6</td></tr></table>



(1) Consists of interest expense from interest rate swap contracts.

(2) Consists of net realized and unrealized gains and losses on foreign currency forward contracts.

## 12 — FAIR VALUE DISCLOSURES

The Company’s financial instruments include cash equivalents, fees receivable from customers, accounts payable, and accruals which are normally short-term in nature. The Company believes the carrying amounts of these financial instruments reasonably approximate their fair value due to their short-term nature. The Company’s financial instruments also include its outstanding variable-rate borrowings under the 2016 Credit Agreement. The Company believes the carrying amount of its variable-rate borrowings reasonably approximates their fair value because the rate of interest on those borrowings reflects current market rates of interest for similar instruments with comparable maturities.

The Company enters into a limited number of derivatives transactions but does not enter into repurchase agreements, securities lending transactions, or master netting arrangements. Receivables or payables that result from derivatives transactions are recorded gross in the Company’s Consolidated Balance Sheets.

FASB ASC Topic 820 provides a framework for the measurement of fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of assets and liabilities. Classification within the hierarchy is based upon the lowest level of input that is significant to the resulting fair value measurement. The valuation hierarchy contains three levels. Level 1 measurements consist of quoted prices in active markets for identical assets or liabilities. Level 2 measurements include significant other observable inputs such as quoted prices for similar assets or liabilities in active markets; identical assets or liabilities in inactive markets; observable inputs such as interest rates and yield curves; and other market-corroborated inputs. Level 3 measurements include significant unobservable inputs, such as internally-created valuation models. The Company does not currently utilize Level 3 valuation inputs to remeasure any of its assets or liabilities. However, Level 3 inputs may be used by the Company in its required annual impairment review of recorded goodwill. Information regarding the periodic assessment of the Company’s goodwill is included in Note 1 — Business and Significant Accounting Policies. The Company does not typically transfer assets or liabilities between different levels of the fair value hierarchy.



The following table presents the fair value of certain financial assets and liabilities (in thousands):

<table><tr><td>Description:</td><td>Fair Value December 31, 2017</td><td>Fair Value December 31, 2016</td></tr><tr><td>Assets:</td><td></td><td></td></tr><tr><td>Values based on Level 1 inputs:</td><td></td><td></td></tr><tr><td>Deferred compensation plan assets (1)</td><td>$ 29,108</td><td>$ 10,252</td></tr><tr><td>Total Level 1 inputs</td><td>29,108</td><td>10,252</td></tr><tr><td>Values based on Level 2 inputs:</td><td></td><td></td></tr><tr><td>Deferred compensation plan assets (1)</td><td>59,017</td><td>27,847</td></tr><tr><td>Foreign currency forward contracts (2)</td><td>2,053</td><td>165</td></tr><tr><td>Interest rate swap contracts (3)</td><td>3,412</td><td>—</td></tr><tr><td>Total Level 2 inputs</td><td>64,482</td><td>28,012</td></tr><tr><td>Total Assets</td><td>$ 93,590</td><td>$ 38,264</td></tr><tr><td>Liabilities:</td><td></td><td></td></tr><tr><td>Values based on Level 2 inputs:</td><td></td><td></td></tr><tr><td>Deferred compensation plan liabilities (1)</td><td>$ 89,900</td><td>$ 43,075</td></tr><tr><td>Foreign currency forward contracts (2)</td><td>1,605</td><td>485</td></tr><tr><td>Interest rate swap contracts (3)</td><td>—</td><td>2,349</td></tr><tr><td>Senior Notes due 2025 (4)</td><td>837,560</td><td>—</td></tr><tr><td>Total Level 2 inputs</td><td>$ 929,065</td><td>$ 45,909</td></tr><tr><td>Total Liabilities</td><td>$ 929,065</td><td>$ 45,909</td></tr></table>

(1) The Company has a deferred compensation plan for the benefit of certain highly compensated officers, managers and other key employees (see Note 13 — Employee Benefits). The assets consist of investments in money market and mutual funds, and company-owned life insurance contracts. The money market funds consist of cash equivalents while the mutual fund investments consist of publicly-traded and quoted equity shares. The Company considers the fair value of these assets to be based on Level 1 inputs, and these assets had a fair value of $29.1 million and $10.3 million as of December 31, 2017 and 2016, respectively. The carrying amount of the life insurance contracts equals their cash surrender value. Cash surrender value represents the estimated amount that the Company would receive upon termination of the contract, which approximates fair value. The Company considers the life insurance contracts to be valued based on a Level 2 input, and these assets had a fair value of $59.0 million and $27.8 million at December 31, 2017 and 2016, respectively. The related deferred compensation plan liabilities are recorded at fair value, or the estimated amount needed to settle the liability, which the Company considers to be a Level 2 input.

(2) The Company enters into foreign currency forward exchange contracts to hedge the effects of adverse fluctuations in foreign currency exchange rates (see Note 11 — Derivatives and Hedging). Valuation of the foreign currency forward contracts is based on observable foreign currency exchange rates in active markets, which the Company considers a Level 2 input.

(3) The Company has interest rate swap contracts which hedge the risk of variability from interest payments on its borrowings (see Note 5 — Debt). The fair value of the swaps is based on mark-to-market valuations prepared by a third-party broker. The valuations are based on observable interest rates from recently executed market transactions and other observable market data, which the Company considers Level 2 inputs. The Company independently corroborates the reasonableness of the valuations prepared by the third-party broker through the use of an electronic quotation service.

(4) As discussed in Note 5 — Debt, the Company issued $800.0 million of principal amount fixed-rate Senior Notes due 2025 on March 30, 2017. The estimated fair value of the notes was derived from quoted market prices provided by an independent dealer which the Company considers to be a Level 2 input.

## 13 — EMPLOYEE BENEFITS

Defined contribution plan. The Company has savings and investment plans (the “401k Plans”) covering substantially all U.S. employees. Company contributions are based upon the level of employee contributions, up to a maximum of 4% of an employee’s eligible salary, subject to an annual maximum. For 2017, the maximum match was $7,200. Amounts expensed in connection with the 401k Plans totaled $29.8 million, $22.9 million and $20.0 million in 2017, 2016 and 2015, respectively.



Deferred compensation plan. The Company has supplemental deferred compensation plans for the benefit of certain highly compensated officers, managers and other key employees. The plans' investment assets are recorded in Other assets on the Consolidated Balance Sheets at fair value. The value of these assets was $88.1 million and $38.1 million at December 31, 2017 and 2016, respectively (see Note 12 — Fair Value Disclosures for fair value information). The corresponding deferred compensation liability, which was $89.9 million and $43.1 million at December 31, 2017 and 2016, respectively, is carried at fair value, and is adjusted with a corresponding charge or credit to compensation expense to reflect the fair value of the amount owed to the employees and is classified in Other liabilities on the Consolidated Balance Sheets. Compensation expense recognized for the plans was $0.4 million, $0.1 million and $0.5 million in 2017, 2016 and 2015, respectively.

Defined benefit pension plans. The Company has defined benefit pension plans in several of its international locations. Benefits paid under these plans are based on years of service and level of employee compensation. The Company's defined benefit pension plans are accounted for in accordance with FASB ASC Topics No. 715 and 960. The following are the components of defined benefit pension expense for the years ended December 31 (in thousands):

<table><tr><td></td><td colspan="2">2017</td><td colspan="2">2016</td><td colspan="2">2015</td></tr><tr><td>Service cost</td><td>$     2,820</td><td>$     2,780</td><td>$     2,620</td><td></td><td></td><td></td></tr><tr><td>Interest cost</td><td>765</td><td></td><td>850</td><td></td><td>790</td><td></td></tr><tr><td>Expected return on plan assets</td><td>(360)</td><td></td><td>(375)</td><td></td><td>(345)</td><td></td></tr><tr><td>Recognition of actuarial loss</td><td>350</td><td></td><td>200</td><td></td><td>300</td><td></td></tr><tr><td>Recognition of termination benefits</td><td>—</td><td></td><td>—</td><td></td><td>85</td><td></td></tr><tr><td>Total defined benefit pension plan expense (1)</td><td>$     3,575</td><td>$     3,455</td><td>$     3,450</td><td></td><td></td><td></td></tr></table>

(1) Pension expense is classified in SG&A in the Consolidated Statements of Operations.

The following are the key assumptions used in the computation of pension expense for the years ended December 31:

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Weighted average discount rate (1)</td><td>1.78%</td><td>1.78%</td><td>2.19%</td></tr><tr><td>Average compensation increase</td><td>2.66%</td><td>2.67%</td><td>2.66%</td></tr></table>

(1) Discount rates are typically determined by utilizing the yields on long-term corporate or government bonds in the relevant country with a duration consistent with the expected term of the underlying pension obligations.

The following table provides information related to changes in the projected benefit obligation for the years ended December 31 (in thousands):

<table><tr><td></td><td colspan="2">2017</td><td colspan="2">2016</td><td colspan="2">2015</td></tr><tr><td>Projected benefit obligation at beginning of year</td><td>$     38,400</td><td>$     35,870</td><td>$     38,115</td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>2,820</td><td>2,780</td><td>2,620</td><td></td><td></td><td></td></tr><tr><td>Interest cost</td><td>765</td><td>850</td><td>790</td><td></td><td></td><td></td></tr><tr><td>Actuarial loss (gain) due to assumption changes and plan experience</td><td>690</td><td>1,480</td><td>(1,190)</td><td></td><td></td><td></td></tr><tr><td>Additions and contractual termination benefits</td><td>(860)</td><td>—</td><td>85</td><td></td><td></td><td></td></tr><tr><td>Benefits paid (1)</td><td>(920)</td><td>(1,640)</td><td>(775)</td><td></td><td></td><td></td></tr><tr><td>Foreign currency impact</td><td>4,555</td><td>(940)</td><td>(3,775)</td><td></td><td></td><td></td></tr><tr><td>Projected benefit obligation at end of year (2)</td><td>$     45,450</td><td>$     38,400</td><td>$     35,870</td><td></td><td></td><td></td></tr></table>

(1) The Company projects the following benefit payments will be made in future years to plan participants: $1.3 million in 2018; $2.2 million in 2019; $1.5 million in 2020, $1.5 million in 2021, $1.6 million in 2022; and $10.5 million in total in the five years thereafter.

(2) Measured as of December 31.



The following table provides information regarding the funded status of the plans and related amounts recorded in the Company’s Consolidated Balance Sheets as of December 31 (in thousands):

<table><tr><td>Funded status of the plans:</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Projected benefit obligation</td><td>$ 45,450</td><td>$ 38,400</td><td>$ 35,870</td></tr><tr><td>Pension plan assets at fair value (1)</td><td>(18,475)</td><td>(14,465)</td><td>(13,190)</td></tr><tr><td>Funded status - shortfall (2)</td><td>$ 26,975</td><td>$ 23,935</td><td>$ 22,680</td></tr></table>

Amounts recorded in the Consolidated Balance Sheets for the plans:

<table><tr><td>Other liabilities — accrued pension obligation (2)</td><td>$ 26,975</td><td>$ 23,935</td><td>$ 22,680</td></tr><tr><td>Stockholders’ equity — deferred actuarial loss (3)</td><td>$ (5,861)</td><td>$ (5,797)</td><td>$ (4,832)</td></tr></table>

(1) The pension plan assets are held by third-party trustees and are invested in a diversified portfolio of equities, high quality government and corporate bonds, and other investments. The assets are primarily valued based on Level 1 and Level 2 inputs under the fair value hierarchy in FASB ASC Topic No. 820, with the majority of the invested assets considered to be of low-to-medium investment risk. The Company projects a future long-term rate of return on these plan assets of 2.22%, which it believes is reasonable based on the composition of the assets and both current and projected market conditions. For the year ended December 31, 2017, the Company contributed $2.4 million to these plans, and benefits paid to participants were $1.8 million.

(2) The Funded status - shortfall represents the amount of the projected benefit obligation that the Company has not funded with a third-party trustee. This amount is a liability of the Company and is recorded in Other liabilities on the Company’s Consolidated Balance Sheets.

(3) The deferred actuarial loss as of December 31, 2017 is recorded in AOCL/I and will be reclassified out of AOCL/I and recognized as pension expense over approximately 13 years, subject to certain limitations set forth in FASB ASC Topic No. 715. The impact of this amortization on pension expense in 2018 is projected to result in approximately $0.3 million of additional expense. The amortization of deferred actuarial losses from AOCL/I to pension expense in each of the three years ended December 31, 2017 was immaterial.

The Company also maintains a reinsurance asset arrangement with a large international insurance company whose purpose is to provide funding for benefit payments for one of the plans. The reinsurance asset is not a pension plan asset but is an asset of the Company. At December 31, 2017 and 2016, the reinsurance asset was recorded at its cash surrender value of $9.1 million and $7.8 million, respectively, and is classified in Other assets on the Company's Consolidated Balance Sheets. The Company believes the cash surrender value approximates fair value and is equivalent to a Level 2 input under the FASB's fair value framework in ASC Topic No. 820.

## 14 — SEGMENT INFORMATION

As a result of the CEB acquisition on April 5, 2017, the Company began reporting its results across four business segments reflecting its enlarged scale and breadth of advisory services aligned to the mission-critical priorities of virtually all functional business leaders across every industry and size of enterprise worldwide.

Our products and services are delivered through four segments – Research, Consulting, Events and Talent Assessment & Other, as follows:

• Research provides trusted, objective insights and advice on the mission-critical priorities of leaders across all functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to our analysts, peer networking services and membership programs that enable our clients to make better decisions. Gartner's traditional strengths in IT, marketing and supply chain research were enhanced in 2017 with Gartner's acquisition of CEB, Inc., which added CEB's best practice and talent management research insights across a range of business functions, to include human resources, sales, legal and finance.

• Consulting provides customized solutions to unique client needs through on-site, day-to-day support, as well as proprietary tools for measuring and improving IT performance with a focus on cost, performance, efficiency and quality.

- Events provides business professionals across the organization the opportunity to learn, share and network. From our flagship CIO event Gartner Symposium/ITxpo, to industry-leading conferences focused on specific business roles and topics, to member-driven sessions, our events enable attendees to experience the best of Gartner insight and advice live.



- Talent Assessment & Other helps organizations assess, engage, manage and improve talent. This is accomplished through knowledge and skills assessments, training programs, workshops, and survey and questionnaire services.

The Company evaluates segment performance and allocates resources based on gross contribution margin. Gross contribution, as presented in the table below, is defined as operating income excluding certain Cost of services and product development expenses, Selling, general and administrative expenses, Depreciation, Amortization of intangibles, and Acquisition and integration charges. Certain bonus and fringe benefit costs included in consolidated Cost of services and product development are not allocated to segment expense. The accounting policies used by the reportable segments are the same as those used by the Company. There are no intersegment revenues. The Company does not identify or allocate assets, including capital expenditures, by reportable segment. Accordingly, assets are not reported by segment because the information is not available by segment and is not reviewed in the evaluation of segment performance or in making decisions in the allocation of resources.

The Company earns revenue from clients in many countries. Other than the United States, there is no individual country in which revenues from external clients represent 10% or more of the Company’s consolidated revenues. Additionally, no single client accounted for 10% or more of total revenue and the loss of a single client, in management’s opinion, would not have a material adverse effect on revenues.

The following tables present operating information about the Company’s reportable segments for the periods indicated (in thousands):

<table><tr><td></td><td>Research</td><td>Consulting</td><td>Events</td><td>Talent Assessment &amp; Other</td><td>Consolidated</td></tr><tr><td>2017 (1)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$ 2,471,280</td><td>$ 327,661</td><td>$ 337,903</td><td>174,650</td><td>$ 3,311,494</td></tr><tr><td>Gross contribution</td><td>1,653,014</td><td>93,643</td><td>163,480</td><td>90,249</td><td>2,000,386</td></tr><tr><td>Corporate and other expenses</td><td></td><td></td><td></td><td></td><td>(2,006,715)</td></tr><tr><td>Operating (loss)</td><td></td><td></td><td></td><td></td><td>$ (6,329)</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Research</td><td>Consulting</td><td>Events</td><td>Talent Assessment &amp; Other</td><td>Consolidated</td></tr><tr><td>2016 (1)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$ 1,857,001</td><td>$ 318,934</td><td>$ 268,605</td><td>—</td><td>$ 2,444,540</td></tr><tr><td>Gross contribution</td><td>1,285,611</td><td>89,734</td><td>136,655</td><td>—</td><td>1,512,000</td></tr><tr><td>Corporate and other expenses</td><td></td><td></td><td></td><td></td><td>(1,206,859)</td></tr><tr><td>Operating income</td><td></td><td></td><td></td><td></td><td>$ 305,141</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Research</td><td>Consulting</td><td>Events</td><td>Talent Assessment &amp; Other</td><td>Consolidated</td></tr><tr><td>2015 (1)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$ 1,614,904</td><td>$ 296,317</td><td>$ 251,835</td><td>—</td><td>$ 2,163,056</td></tr><tr><td>Gross contribution</td><td>1,117,534</td><td>86,486</td><td>130,527</td><td>—</td><td>1,334,547</td></tr><tr><td>Corporate and other expenses</td><td></td><td></td><td></td><td></td><td>(1,046,550)</td></tr><tr><td>Operating income</td><td></td><td></td><td></td><td></td><td>$ 287,997</td></tr></table>

(1) In 2017 the Company began reporting the results of its Strategic Advisory Services ("SAS") business in Research whereas previously the SAS business was reported with Consulting. Although the impact of the reclassification was not significant, the operating results of the SAS business for 2016 and 2015 were reclassified from Consulting to Research to be comparable with the current year presentation.



The following table provides a reconciliation of total segment gross contribution to net income for the years ended December 31 (in thousands):

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Total segment gross contribution</td><td>$ 2,000,386</td><td>$ 1,512,000</td><td>$ 1,334,547</td></tr><tr><td>Costs and expenses:</td><td></td><td></td><td></td></tr><tr><td>Cost of services and product development - unallocated (1)</td><td>9,090</td><td>13,108</td><td>10,567</td></tr><tr><td>Selling, general and administrative</td><td>1,599,004</td><td>1,089,184</td><td>962,677</td></tr><tr><td>Depreciation and amortization</td><td>240,171</td><td>61,969</td><td>47,131</td></tr><tr><td>Acquisition and integration charges</td><td>158,450</td><td>42,598</td><td>26,175</td></tr><tr><td>Operating (loss) income</td><td>(6,329)</td><td>305,141</td><td>287,997</td></tr><tr><td>Interest expense and other, net</td><td>121,488</td><td>16,710</td><td>15,786</td></tr><tr><td>(Benefit) provision for income taxes</td><td>(131,096)</td><td>94,849</td><td>96,576</td></tr><tr><td>Net income</td><td>$ 3,279</td><td>$ 193,582</td><td>$ 175,635</td></tr></table>

(1) The unallocated amounts consist of certain bonus and related fringe costs recorded in consolidated Cost of services and product development expense that are not allocated to segment expense. The Company’s policy is to only allocate bonus and related fringe charges to segments for up to 100% of the segment employee’s target bonus. Amounts above 100% are absorbed by corporate.

The Company’s revenues are 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, it is not practical to precisely separate our revenues by geographic location. Accordingly, the separation set forth in the table below is based upon internal allocations, which involve certain management estimates and judgments. Revenues in the table are reported based on where the sale is fulfilled; “Other International” revenues are those attributable to all areas located outside of the United States and Canada, as well as Europe, Middle East and Africa.

Summarized information by geographic location as of and for the years ended December 31 follows (in thousands):

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Revenues:</td><td></td><td></td><td></td></tr><tr><td>United States and Canada</td><td>$ 2,037,111</td><td>$ 1,519,748</td><td>$ 1,347,676</td></tr><tr><td>Europe, Middle East and Africa</td><td>850,352</td><td>616,721</td><td>557,165</td></tr><tr><td>Other International</td><td>424,031</td><td>308,071</td><td>258,215</td></tr><tr><td>Total revenues</td><td>$ 3,311,494</td><td>$ 2,444,540</td><td>$ 2,163,056</td></tr><tr><td>Long-lived assets: (1)</td><td></td><td></td><td></td></tr><tr><td>United States and Canada</td><td>$ 288,735</td><td>$ 143,921</td><td>$ 163,933</td></tr><tr><td>Europe, Middle East and Africa</td><td>84,840</td><td>42,326</td><td>31,130</td></tr><tr><td>Other International</td><td>41,674</td><td>24,630</td><td>16,050</td></tr><tr><td>Total long-lived assets</td><td>$ 415,249</td><td>$ 210,877</td><td>$ 211,113</td></tr></table>

(1) Excludes goodwill, intangible, and held-for-sale assets.



## 15 — VALUATION AND QUALIFYING ACCOUNTS

The Company maintains an allowance for losses which is composed of a bad debt allowance and a revenue reserve. Provisions are charged against earnings either as an increase to expense or a reduction in revenues.

The following table summarizes activity in the Company’s allowance for the years ended December 31 (in thousands):

<table><tr><td></td><td>Balance at Beginning of Year</td><td>Additions Charged to Expense</td><td>Additions Charged Against Revenues</td><td>Deductions from Reserve</td><td>Balance at End of Year</td></tr><tr><td>2017:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Allowance for doubtful accounts and returns and allowances</td><td>$     7,400</td><td>$     16,600</td><td>$     5,500</td><td>$      (16,800)</td><td>$     12,700</td></tr><tr><td>2016:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Allowance for doubtful accounts and returns and allowances</td><td>$     6,900</td><td>$     4,750</td><td>$     4,850</td><td>$      (9,100)</td><td>$     7,400</td></tr><tr><td>2015:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Allowance for doubtful accounts and returns and allowances</td><td>$     6,700</td><td>$     3,480</td><td>$     5,420</td><td>$      (8,700)</td><td>$     6,900</td></tr></table>

## 16 — SUBSEQUENT EVENTS

On February 6, 2018, the Company announced that it had reached a definitive agreement to sell its CEB Talent Assessment business to Exponent Private Equity, a UK-based private equity firm, for $400.0 million. The CEB Talent Assessment business is a significant portion of the Company's Talent Assessment & Other segment. The agreement comes at the end of a previously announced process to evaluate strategic alternatives for CEB Talent Assessment, formerly SHL, which was acquired by Gartner as part of the CEB acquisition in 2017. The transaction is expected to close in the first half of 2018 and is subject to customary closing conditions. Note 2 — Acquisitions and Divestiture provides additional information.

## ITEM 16. FORM 10-K SUMMARY

None.



## SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this Report on Form 10-K to be signed on its behalf by the undersigned, duly authorized, in Stamford, Connecticut, on February 22, 2018.

Date: February 22, 2018

Gartner, Inc.

By: /s/ Eugene A. Hall

Eugene A. Hall

Chief Executive Officer

## POWER OF ATTORNEY

Each person whose signature appears below appoints Eugene A. Hall and Craig W. Safian and each of them, acting individually, as his or her attorney-in-fact, each with full power of substitution, for him or her in all capacities, to sign all amendments to this Report on Form 10-K, and to file the same, with appropriate exhibits and other related documents, with the Securities and Exchange Commission. Each of the undersigned ratifies and confirms his or her signatures as they may be signed by his or her attorney-in-fact to any amendments to this Report. Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:

<table><tr><td>Name</td><td>Title</td><td>Date</td></tr><tr><td>/s/ Eugene A. Hall</td><td>Director and Chief Executive Officer</td><td>February 22, 2018</td></tr><tr><td>Eugene A. Hall</td><td>(Principal Executive Officer)</td><td></td></tr><tr><td>/s/ Craig W. Safian</td><td>Executive Vice President and Chief Financial Officer</td><td>February 22, 2018</td></tr><tr><td>Craig W. Safian</td><td>(Principal Financial and Accounting Officer)</td><td></td></tr><tr><td>/s/ Michael J. Bingle</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Michael J. Bingle</td><td></td><td></td></tr><tr><td>/s/ Peter E. Bisson</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Peter E. Bisson</td><td></td><td></td></tr><tr><td>/s/ Richard J. Bressler</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Richard J. Bressler</td><td></td><td></td></tr><tr><td>/s/ Raul E. Cesan</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Raul E. Cesan</td><td></td><td></td></tr><tr><td>/s/ Karen E. Dykstra</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Karen E. Dykstra</td><td></td><td></td></tr><tr><td>/s/ Anne Sutherland Fuchs</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Anne Sutherland Fuchs</td><td></td><td></td></tr><tr><td>/s/ William O. Grabe</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>William O. Grabe</td><td></td><td></td></tr><tr><td>/s/ Stephen G. Pagliuca</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Stephen G. Pagliuca</td><td></td><td></td></tr><tr><td>/s/ Eileen Serra</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>Eileen Serra</td><td></td><td></td></tr><tr><td>/s/ James C. Smith</td><td>Director</td><td>February 22, 2018</td></tr><tr><td>James C. Smith</td><td></td><td></td></tr></table>



## CERTIFICATION

I, Eugene A. Hall, certify that:

(1) I have reviewed this Annual Report on Form 10-K of Gartner, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



## CERTIFICATION

I, Craig W. Safian, certify that:

(1) I have reviewed this Annual Report on Form 10-K of Gartner, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Craig W. Safian

Craig W. Safian

Chief Financial Officer

Date: February 22, 2018



## CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Gartner, Inc. (the “Company”) on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Eugene A. Hall Chief Executive Officer of the Company, and Craig W. Safian, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Eugene A. Hall

Name: Eugene A. Hall

Title: Chief Executive Officer
Date: February 22, 2018

/s/ Craig W. Safian

Name: Craig W. Safian

Title: Chief Financial Officer

Date: February 22, 2018

A signed original of this written statement required by Section 906 has been provided to Gartner, Inc. and will be retained by Gartner, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.



## Board of Directors

Michael J. Bingle
Managing Partner
Managing Director
Silver Lake

Peter E. Bisson
Former Director
McKinsey & Company

Richard J. Bressler
President, Chief Operating
Officer and Chief Financial Officer
iHeart Media, Inc.

Chief Financial Officer
Clear Channel Outdoor
Holdings, Inc.

Raul E. Cesan
Founder and Managing Partner
Commercial Worldwide, LLC
Former President and COO
Schering-Plough Corporation

Karen E. Dykstra
Former Chief Financial and
Administrative Officer
AOL

Former Chief Financial Officer
ADP

Anne Sutherland Fuchs
Consultant
Former Chair, Commission
on Women's Issues for
New York City

William O. Grabe
Advisory Director
General Atlantic

Eugene A. Hall
Chief Executive Officer
Gartner

Stephen G. Pagliuca
Managing Director
Bain Capital Private Equity, LP
Co-Chairman, Bain Capital, LP

Managing Partner
Boston Celtics

Eileen M. Serra
Former Senior Advisor,
JPMorgan Chase & Co.
Former Chief Executive Officer
Chase Card Services

Chairman of the Board
Gartner

Retired Chairman and CEO
First Health Group Corp.



## GARTNER HEADQUARTERS

Corporate Headquarters
Gartner, Inc.
56 Top Gallant Road
Stamford, CT 06902 USA
+1 203 964 0096

Asia/Pacific Headquarters
Gartner Australasia Pty. Ltd.
Level 18
40 Mount Street
North Sydney NSW 2060
Australia
Tel: +61 2 9459 4600

Japan Headquarters
Gartner Japan Ltd.
Atago Green Hills MORI Tower 5F
2-5-1 Atago, Minato-ku
Tokyo 105-6205, Japan
+81 3 6430 1800

Europe Headquarters
Gartner UK Limited
Tamesis, The Glanty
Egham, Surrey TW20 9AH
United Kingdom
+44 1784 431611

Latin America Headquarters
AMER Brazil-Sao Paulo
8th Floor, FL Corporate Building
Avenida Brigadeiro Faria Lima 4300
Itaim Bibi
São Paulo 04538-132
Brazil
Tel: +55 11 3043 7544