Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the three months ended March 31, 2017 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2016		1,540		$	34.35
Granted		—			—
Exercised		(63	)		30.15
Forfeited		(21	)		33.86
Outstanding at March 31, 2017		1,456		$	34.54		6.29	$	7,605
Exercisable at March 31, 2017		856		$	33.80		5.18	$	5,094
Vested and expected to vest at March 31, 2017		1,456		$	34.54		6.29	$	7,605

Restricted stock unit activity for the three months ended March 31, 2017 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2016		539		$	35.50
Granted		11			39.55
Vested		(4	)		32.83
Forfeited		(10	)		35.29
Unvested at March 31, 2017		536		$	35.61

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
	March 31,
	2017		2016
Cost of services and fulfillment	$	1,197	$	1,194
Selling and marketing		162		314
General and administrative		690		627
Total	$	2,049	$	2,135

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions:

	Three Months Ended
	March 31,
	2017			2016
Average risk-free interest rate		0.88	%		0.47	%
Expected dividend yield		1.9	%		2.3	%
Expected life	0.5 Years			0.5 Years
Expected volatility		28	%		27	%
Weighted average fair value	$	8.49		$	7.06

Dividends

In the three months ended March 31, 2017, the Company declared and paid a dividend of $0.19 per share or $3.5 million in the aggregate. In the three months ended March 31, 2016, the Company declared and paid a dividend of $0.18 per share or $3.2 million in the aggregate. In April 2017, the Company declared a dividend of $0.19 per share payable on June 21, 2017 to shareholders of record as of June 7, 2017.

Treasury Stock

As of March 31, 2017, Forrester’s Board of Directors had authorized an aggregate $485.0 million to purchase common stock under its stock repurchase program. 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 months ended March 31, 2017, the Company repurchased approximately 0.6 million shares of common stock at an aggregate cost of approximately $21.5 million. The Company did not repurchase shares of common stock in the three months ended March 31, 2016. From the inception of the program through March 31, 2017, Forrester repurchased 15.6 million shares of common stock at an aggregate cost of $446.4 million.