Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Note 12  —  SubsequentEvents

On July 9, 2018, Forrester acquired 100% of the shares of S.NOW SA, a Switzerland-based business that operates as FeedbackNow. FeedbackNow is a maker of physical buttons and monitoring software that companies deploy to measure, analyze, and improve customer experience. The acquisition is part of Forrester's plan to build a real-time customer experience or CX cloud, integrating a range of inputs to help companies monitor and improve customer experience. FeedbackNow provides a high-volume input source for the real-time CX cloud solution. Of the initial purchase price of CHF 9.8 million, which is subject to a closing working capital adjustment, CHF 8.36 million (or $8.5 million) was paid on the closing date and CHF 1.5 million is payable during a two-year period from the closing date and is subject to typical indemnity provisions from the seller. In addition, up to CHF 4.2 million may be earned by the sellers during the two-year period following the closing date based on the financial performance of the acquired company during this period.

In July 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. The opinion invalidated part of a treasury regulation requiring stock-based compensation to be included in any qualified intercompany cost-sharing arrangement. The Company reviewed this case and previously concluded that recording a tax benefit of approximately $1.5 million, representing the benefit of adjusting its cost-sharing agreement for the years of 2012 through 2018, was appropriate based on the opinion in the case. In July 2018, the U.S. Court of Appeals reversed the U.S. Tax Court opinion. On August 7, 2018, the U.S. Court of Appeals withdrew its decision to allow time for a reconstituted panel of judges to review the case. Altera Corp. may continue to litigate this issue. The Company is currently assessing the impact of this decision on its open tax years and will continue to monitor ongoing developments and potential impacts to its consolidated financial statements.