Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income before income taxes consists of the following (in thousands):

	Years Ended December 31,
	2015		2014		2013
Domestic	$	11,347	$	12,939	$	13,557
Foreign		7,973		5,450		6,435
Total	$	19,320	$	18,389	$	19,992

Components of the Income Tax Provision (benefit)

The components of the income tax provision (benefit) are as follows (in thousands):

	Years Ended December 31,
	2015			2014			2013
Current:
Federal	$	5,103		$	11,644		$	8,286
State		1,252			2,239			1,624
Foreign		1,954			1,167			1,587
Total current		8,309			15,050			11,497
Deferred:
Federal		(723	)		(6,470	)		(3,935	)
State		(232	)		(1,095	)		(562	)
Foreign		(30	)		39			(32	)
Total deferred		(985	)		(7,526	)		(4,529	)
Income tax provision	$	7,324		$	7,524		$	6,968

Reconciliation of the Federal Statutory Rate

A reconciliation of the federal statutory rate to Forrester’s effective tax rate is as follows:

	Years Ended December 31,
	2015			2014			2013
Income tax provision at federal statutory rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in tax resulting from:
State tax provision, net of federal benefit		4.0			4.2			3.4
Foreign tax rate differential		(2.7	)		(3.2	)		(4.9	)
Stock option compensation deduction		2.5			2.6			2.0
Non-deductible expenses		1.7			1.1			2.4
Change in valuation allowance		(0.7	)		(1.0	)		0.5
Change in tax legislation		(3.1	)		—			—
Foreign tax credits		—			—			(3.7	)
Out-of-period adjustment		—			2.5			—
Other, net		1.2			(0.3	)		0.2
Effective tax rate		37.9	%		40.9	%		34.9	%

Components of Deferred Income Taxes

The components of deferred income taxes are as follows (in thousands):

	As of December 31,
	2015			2014
Non-deductible reserves and accruals	$	9,795		$	10,164
Net operating loss and other carryforwards		7,862			9,070
Stock compensation		5,900			5,086
Depreciation and amortization		813			—
Other assets		490			838
Gross deferred tax asset		24,860			25,158
Less - valuation allowance		(1,534	)		(1,565	)
Sub-total		23,326			23,593
Depreciation and amortization		—			(799	)
Goodwill amortization		(5,097	)		(5,224	)
Deferred commissions		(5,344	)		(5,399	)
Net deferred tax asset	$	12,885		$	12,171

Summary of Changes in Deferred Tax Valuation Allowance

The following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
Deferred tax valuation allowance at January 1	$	1,565		$	2,200		$	2,086
Additions		150			17			801
Deductions		(134	)		(574	)		(712	)
Translation adjustments		(47	)		(78	)		25
Deferred tax valuation allowance at December 31	$	1,534		$	1,565		$	2,200

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is summarized as follows for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	2015			2014			2013
Unrecognized tax benefits at January 1	$	2,136		$	2,012		$	1,844
Additions for tax positions of prior years		36			6			414
Reductions for tax positions of prior years		—			—			(256	)
Additions for tax positions of current year		46			121			19
Settlements		(303	)		—			—
Lapse of statute of limitations		—			—			—
Translation adjustments		(5	)		(3	)		(9	)
Unrecognized tax benefits at December 31	$	1,910		$	2,136		$	2,012