Stockholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the nine months ended September 30, 2015 is presented below (in thousands, except per share data):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2014		1,954		$	33.81
Granted		450			33.74
Exercised		(49	)		29.38
Forfeited		(111	)		36.23
Outstanding at September 30, 2015		2,244		$	33.77		6.92	$	2,000
Exercisable at September 30, 2015		1,132		$	32.14		5.06	$	1,817
Vested and expected to vest at September 30, 2015		2,114		$	33.67		6.78	$	1,989

Restricted stock unit activity for the nine months ended September 30, 2015 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2014		433		$	35.64
Granted		258			31.50
Vested		(134	)		35.29
Forfeited		(39	)		35.45
Unvested at September 30, 2015		518		$	33.68

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation in net income over the requisite service period of the individual grantee, which generally equals the vesting period. Stock-based compensation was recorded in the following expense categories (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Cost of services and fulfillment	$	1,183	$	1,134	$	3,218	$	3,005
Selling and marketing		331		302		754		767
General and administrative		710		547		1,913		1,376
Total	$	2,224	$	1,983	$	5,885	$	5,148

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of stock options. Options granted under the equity incentive plans and shares subject to purchase under the employee stock purchase plan were valued using the following assumptions:

	Three Months Ended						Three Months Ended
	September 30, 2015						September 30, 2014
	Equity Incentive			Employee Stock			Equity Incentive			Employee Stock
	Plans			Purchase Plan			Plans			Purchase Plan
Average risk-free interest rate		1.63	%		0.14	%		1.70	%		0.06	%
Expected dividend yield		2.1	%		2.1	%		1.8	%		1.8	%
Expected life	5.0 Years			0.5 Years			5.1 Years			0.5 Years
Expected volatility		24	%		21	%		25	%		23	%
Weighted average fair value	$	6.00		$	6.43		$	7.68		$	8.00

	Nine Months Ended						Nine Months Ended
	September 30, 2015						September 30, 2014
	Equity Incentive			Employee Stock			Equity Incentive			Employee Stock
	Plans			Purchase Plan			Plans			Purchase Plan
Average risk-free interest rate		1.60	%		0.14	%		1.69	%		0.06	%
Expected dividend yield		2.1	%		2.1	%		1.8	%		1.8	%
Expected life	5.0 Years			0.5 Years			5.1 Years			0.5 Years
Expected volatility		24	%		21	%		26	%		23	%
Weighted average fair value	$	6.16		$	6.43		$	7.91		$	8.00

Dividends

In the nine months ended September 30, 2015, the Company declared and paid dividends of $9.2 million consisting of a $0.17 per share dividend in each of the first three quarters of 2015. In the nine months ended September 30, 2014, the Company declared and paid dividends of $9.1 million consisting of a $0.16 per share dividend in each of the first three quarters of 2014. In October 2015, the Company declared a dividend of $0.17 per share payable on December 16, 2015 to shareholders of record as of December 2, 2015.

Treasury Stock

As of September 30, 2015 Forrester’s Board of Directors had authorized an aggregate $460.0 million to purchase common stock under its stock repurchase program, including $25.0 million authorized in each of February and July 2015. The shares repurchased may be used, among other things, in connection with Forrester’s employee and director equity incentive and purchase plans. In the three and nine months ended September 30, 2015, the Company repurchased 0.2 million shares and 0.5 million shares, respectively, of common stock at an aggregate cost of $6.9 million and $18.6 million, respectively. In the three and nine months ended September 30, 2014, the Company repurchased 0.3 million shares and 1.8 million shares, respectively, of common stock at an aggregate cost of $11.6 million and $66.6 million, respectively. From the inception of the program through September 30, 2015, Forrester repurchased 14.9 million shares of common stock at an aggregate cost of $420.9 million.