Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in thousands):


	Net Unrealized Gain (Loss) on Marketable Investments			Cumulative Translation Adjustment			Total Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2011	$	(1,000	)	$	(4,472	)	$	(5,472	)
Foreign currency translation		—			(1,335	)		(1,335	)
Unrealized loss on investments before reclassification, net of tax of $41		(9	)		—			(9	)
Reclassification adjustment for net gains realized in net income, net of tax of $8		(12	)		—			(12	)

Balance at December 31, 2011		(1,021	)		(5,807	)		(6,828	)
Foreign currency translation		—			7,419			7,419
Unrealized gain on investments before reclassification, net of tax of $7		14			—			14
Reclassification adjustment for net gains realized in net income, net of tax of $12		(17	)		—			(17	)

Balance at December 31, 2012		(1,024	)		1,612			588
Foreign currency translation		—			826			826
Unrealized loss on investments before reclassification, net of tax of $41		(111	)		—			(111	)
Reclassification adjustment for net losses realized in net income, net of tax of $691		1,151			—			1,151

Balance at December 31, 2013	$	16		$	2,438		$	2,454

Stock-based Compensation Expense

Stock-based compensation expense was recorded in the following expense categories (in thousands):


	Years Ended December 31,
	2013		2012		2011
Cost of services and fulfillment	$	3,585	$	3,085	$	1,644
Selling and marketing		1,136		894		751
General and administrative		1,330		1,418		1,247

Total	$	6,051	$	5,397	$	3,642

Options Granted Under the Equity Incentive Plans and Shares Subject to the Employee Stock Purchase Plan Valuation Assumptions

The options granted under the equity incentive plans and shares subject to the employee stock purchase plan were valued utilizing the Black Scholes model using the following assumptions and had the following fair values:


	Years Ended December 31,
	2013						2012						2011
	Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan			Equity Incentive Plans			Employee Stock Purchase Plan
Average risk-free interest rate		0.85	%		0.12	%		0.85	%		0.14	%		1.25	%		0.13	%
Expected dividend yield		2.1	%		1.9	%		1.7	%		1.7	%		None			None
Expected life		4.9 Years			0.5 Years			4.5 Years			0.5 Years			3.5 Years			0.5 Years
Expected volatility		36	%		22	%		40	%		31	%		40	%		28	%
Weighted average fair value	$	9.21		$	6.02		$	9.64		$	6.90		$	10.47		$	7.55

Depreciation and Amortization of Property and Equipment, Useful Life

Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over estimated useful lives of assets as follows:


		Estimated Useful Life
Computers and equipment		3 to 10 Years
Computer software		3 to 5 Years
Furniture and fixtures		7 Years
Leasehold improvements		Shorter of asset life or lease term

Amortization of Intangible Assets, Useful Life

Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over the respective lives as follows:


		Estimated Useful Life
Customer relationships		5 to 11 Years
Research content		1 to 2 Years
Technology		7 Years
Trademarks		1 Year

Summary of Basic and Diluted Weighted Average Common Shares

Basic and diluted weighted average common shares are as follows (in thousands):


	Years Ended December 31,
	2013		2012		2011

Basic weighted average common shares outstanding		20,861		22,500		22,666
Weighted average common equivalent shares		492		429		498

Diluted weighted average common shares outstanding		21,353		22,929		23,164