Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the nine months ended September 30, 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		(385	)		32.32
Forfeited		(73	)		34.44
Outstanding at September 30, 2017		1,082		$	35.07		6.01	$	7,332
Exercisable at September 30, 2017		771		$	34.92		5.36	$	5,340
Vested and expected to vest at September 30, 2017		1,082		$	35.07		6.01	$	7,332

Restricted stock unit activity for the nine months ended September 30, 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		241			39.58
Vested		(205	)		35.28
Forfeited		(51	)		36.01
Unvested at September 30, 2017		524		$	37.42

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,
	2017		2016		2017		2016
Cost of services and fulfillment	$	1,088	$	1,077	$	3,387	$	3,141
Selling and marketing		170		272		535		695
General and administrative		920		622		2,501		1,895
Total	$	2,178	$	1,971	$	6,423	$	5,731

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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Average risk-free interest rate		0.96	%		0.47	%		0.81	%		0.47	%
Expected dividend yield		1.9	%		2.0	%		1.9	%		2.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		26	%		26	%		24	%		25	%
Weighted average fair value	$	8.50		$	7.52		$	8.32		$	7.75

Dividends

In the nine months ended September 30, 2017, the Company declared and paid dividends of $10.2 million consisting of a $0.19 per share dividend in each of the first three quarters of 2017. In the nine months ended September 30, 2016, the Company declared and paid dividends of $9.7 million consisting of a $0.18 per share dividend in each of the first three quarters of 2016. In October 2017, the Company declared a dividend of $0.19 per share payable on December 20, 2017 to shareholders of record as of December 6, 2017.

Treasury Stock

As of September 30, 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 equity incentive and purchase plans. In the three and nine months ended September 30, 2017, the Company repurchased approximately 0.1 and 1.1 million shares, respectively, of common stock at an aggregate cost of approximately $3.5 million and $40.0 million, respectively. The Company did not repurchase shares of common stock in the nine months ended September 30, 2016. From the inception of the program through September 30, 2017, Forrester repurchased 16.1 million shares of common stock at an aggregate cost of $464.9 million.