Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Before Income Taxes

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

	Years Ended December 31,
	2019			2018		2017
Domestic	$	(14,637	)	$	17,718	$	20,061
Foreign		5,038			5,807		7,310
Total	$	(9,599	)	$	23,525	$	27,371

Components of the Income Tax Expense (Benefit)

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

	Years Ended December 31,
	2019			2018		2017
Current:
Federal	$	618		$	2,278	$	2,587
State		911			1,173		1,060
Foreign		2,399			1,763		2,159
Total current		3,928			5,214		5,806
Deferred:
Federal		(1,454	)		2,111		5,550
State		(2,005	)		667		700
Foreign		(498	)		153		175
Total deferred		(3,957	)		2,931		6,425
Income tax expense (benefit)	$	(29	)	$	8,145	$	12,231

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,
	2019			2018			2017
Income tax provision at federal statutory rate		21.0	%		21.0	%		35.0	%
Increase (decrease) in tax resulting from:
State tax provision, net of federal benefit		8.3			6.2			4.0
Foreign tax rate differential		0.4			(0.2	)		(3.4	)
Stock option compensation deduction		(1.2	)		(1.1	)		0.1
Withholding taxes		(3.5	)		2.1			1.7
Non-deductible expenses		(9.8	)		5.3			1.8
Change in valuation allowance		2.3			—			3.9
Foreign subsidiary income subject to U.S. tax		(7.4	)		—			—
Change in tax legislation		(1.2	)		1.9			5.8
Audit settlements		(8.3	)		—			(4.0	)
Other, net		(0.3	)		(0.6	)		(0.2	)
Effective tax rate		0.3	%		34.6	%		44.7	%

Components of Deferred Income Taxes

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

	As of December 31,
	2019			2018
Non-deductible reserves and accruals	$	2,743		$	3,835
Net operating loss and other carryforwards		13,049			7,954
Stock compensation		2,651			2,125
Depreciation and amortization		—			727
Lease liability		17,382			—
Gross deferred tax asset		35,825			14,641
Less - valuation allowance		(2,274	)		(2,574	)
Sub-total		33,551			12,067
Other liabilities		(1,085	)		(1,249	)
Depreciation and amortization		(1,567	)		—
Goodwill and intangible assets		(32,120	)		(6,201	)
Operating lease right-of-use assets		(15,005	)		—
Deferred commissions		(5,706	)		(4,479	)
Net deferred tax asset (liability)	$	(21,932	)	$	138

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, 2019, 2018, and 2017 (in thousands):

	2019			2018			2017
Deferred tax valuation allowance at January 1	$	2,574		$	2,686		$	2,193
Additions		30			74			1,439
Deductions		(356	)		(139	)		(70	)
Change in tax legislation		—			—			(954	)
Translation adjustments		26			(47	)		78
Deferred tax valuation allowance at December 31	$	2,274		$	2,574		$	2,686

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, 2019, 2018, and 2017 (in thousands):

	2019			2018			2017
Unrecognized tax benefits at January 1	$	799		$	806		$	1,774
Reductions for tax positions of prior years		(458	)		—			—
Additions for tax positions of current year		—			—			-
Settlements		—						(986	)
Translation adjustments		4			(7	)		18
Unrecognized tax benefits at December 31	$	345		$	799		$	806