Stockholders' Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the six months ended June 30, 2016 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, 2015		2,171		$	33.84
Granted		61			34.00
Exercised		(122	)		30.57
Forfeited		(174	)		35.80
Outstanding at June 30, 2016		1,936		$	33.88		6.51	$	6,554
Exercisable at June 30, 2016		1,066		$	32.69		4.91	$	4,729
Vested and expected to vest at June 30, 2016		1,845		$	33.82		6.40	$	6,345

Restricted stock unit activity for the six months ended June 30, 2016 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2015		504		$	33.67
Granted		36			33.38
Vested		(75	)		34.41
Forfeited		(29	)		34.15
Unvested at June 30, 2016		436		$	33.49

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				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Cost of services and fulfillment	$	870	$	798	$	2,064	$	2,035
Selling and marketing		109		89		423		423
General and administrative		647		588		1,274		1,203
Total	$	1,626	$	1,475	$	3,761	$	3,661

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of stock options. Options granted under the equity incentive plans and shares subject to purchase under the employee stock purchase plan were valued using the following assumptions:

	Three Months Ended						Three Months Ended
	June 30, 2016						June 30, 2015
	Equity Incentive			Employee Stock			Equity Incentive			Employee Stock
	Plans			Purchase Plan			Plans			Purchase Plan
Average risk-free interest rate		1.26	%		0.47	%		1.35	%		0.11	%
Expected dividend yield		2.3	%		2.3	%		1.8	%		1.8	%
Expected life	5.0 Years			0.5 Years			5.1 Years			0.5 Years
Expected volatility		24	%		27	%		25	%		22	%
Weighted average fair value	$	6.15		$	7.06		$	6.80		$	7.93

	Six Months Ended						Six Months Ended
	June 30, 2016						June 30, 2015
	Equity Incentive			Employee Stock			Equity Incentive			Employee Stock
	Plans			Purchase Plan			Plans			Purchase Plan
Average risk-free interest rate		1.39	%		0.47	%		1.37	%		0.11	%
Expected dividend yield		2.3	%		2.3	%		1.8	%		1.8	%
Expected life	5.0 Years			0.5 Years			5.1 Years			0.5 Years
Expected volatility		24	%		27	%		25	%		22	%
Weighted average fair value	$	5.84		$	7.06		$	7.38		$	7.93

Dividends

In the six months ended June 30, 2016, the Company declared and paid dividends of $6.4 million consisting of a $0.18 per share dividend in each of the first two quarters of 2016. In the six months ended June 30, 2015, the Company declared and paid dividends of $6.1 million consisting of a $0.17 per share dividend in each of the first two quarters of 2015. In July 2016, the Company declared a dividend of $0.18 per share payable on September 21, 2016 to shareholders of record as of September 7, 2016.

Treasury Stock

As of June 30, 2016, Forrester’s Board of Directors had authorized an aggregate $460.0 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. The Company did not repurchase shares of common stock in the six months ended June 30, 2016. In the three and six months ended June 30, 2015, the Company repurchased approximately 0.2 million and 0.3 million shares, respectively, of common stock at an aggregate cost of approximately $6.1 million and $11.8 million, respectively. From the inception of the program through June 30, 2016, Forrester repurchased 15.0 million shares of common stock at an aggregate cost of $423.1 million.