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. 17 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 . 18 business measurements we believe that the following business measurements are important performance indicators for our business segments : business segment business measurements research 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 . 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 . 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 . consulting consulting backlog represents future revenue to be derived from in-process consulting and measurement engagements . 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 . billing rate represents earned billable revenue divided by total billable hours . 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 . events number of events represents the total number of hosted events completed during the period . single day , local events are excluded . number of attendees represents the total number of people who attend events . single day , local events are excluded . 19 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 . story_separator_special_tag 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 . 23 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 . replace_table_token_5_th 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 ) : replace_table_token_6_th the table below presents our revenues by segment for the years indicated ( in thousands ) : replace_table_token_7_th please refer to the section of this md & a below entitled “ segment results ” for a discussion of revenues and results by segment . 24 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

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 .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```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 .
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 Suspicious Activity Report : 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. 17 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 . 18 business measurements we believe that the following business measurements are important performance indicators for our business segments : business segment business measurements research 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 . 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 . 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 . consulting consulting backlog represents future revenue to be derived from in-process consulting and measurement engagements . 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 . billing rate represents earned billable revenue divided by total billable hours . 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 . events number of events represents the total number of hosted events completed during the period . single day , local events are excluded . number of attendees represents the total number of people who attend events . single day , local events are excluded . 19 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 . story_separator_special_tag 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 . 23 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 . replace_table_token_5_th 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 ) : replace_table_token_6_th the table below presents our revenues by segment for the years indicated ( in thousands ) : replace_table_token_7_th please refer to the section of this md & a below entitled “ segment results ” for a discussion of revenues and results by segment . 24 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

