Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Note 11 — Stockholders’ Equity

The components of stockholders’ equity are as follows (in thousands):

	Three Months Ended September 30, 2019
	Common Stock										Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital			Retained Earnings			Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Equity
Balance at July 1, 2019		23,089	$	231	$	210,378		$	115,956			4,631	$	(171,889	)	$	(4,990	)	$	149,686
Issuance of common stock under stock plans, net		158		1		(794	)		—			—		—			—			(793	)
Stock-based compensation expense		—		—		3,072			—			—		—			—			3,072
Net loss		—		—		—			(2,699	)		—		—			—			(2,699	)
Foreign currency translation		—		—		—			—			—		—			(1,614	)		(1,614	)
Balance at September 30, 2019		23,247	$	232	$	212,656		$	113,257			4,631	$	(171,889	)	$	(6,604	)	$	147,652

	Three Months Ended September 30, 2018
	Common Stock									Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings			Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Equity
Balance at July 1, 2018		22,564	$	226	$	189,554	$	125,698			4,624	$	(171,585	)	$	(3,782	)	$	140,111
Issuance of common stock under stock plans, net		329		3		5,129		—			—		—			—			5,132
Stock-based compensation expense		—		—		2,120		—			—		—			—			2,120
Repurchases of common stock		—		—		—		—			7		(304	)		—			(304	)
Dividends paid on common shares		—		—		—		(3,642	)		—		—			—			(3,642	)
Net income		—		—		—		3,950			—		—			—			3,950
Net change in marketable investments, net of tax		—		—		—		—			—		—			65			65
Foreign currency translation		—		—		—		—			—		—			(602	)		(602	)
Balance at September 30, 2018		22,893	$	229	$	196,803	$	126,006			4,631	$	(171,889	)	$	(4,319	)	$	146,830

	Nine Months Ended September 30, 2019
	Common Stock									Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings			Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Equity
Balance at January 1, 2019		22,951	$	230	$	200,696	$	127,717			4,631	$	(171,889	)	$	(5,154	)	$	151,600
Issuance of common stock under stock plans, net		296		2		3,355		—			—		—			—			3,357
Stock-based compensation expense		—		—		8,605		—			—		—			—			8,605
Net loss		—		—		—		(14,460	)		—		—			—			(14,460	)
Foreign currency translation		—		—		—		—			—		—			(1,450	)		(1,450	)
Balance at September 30, 2019		23,247	$	232	$	212,656	$	113,257			4,631	$	(171,889	)	$	(6,604	)	$	147,652

	Nine Months Ended September 30, 2018
	Common Stock									Treasury Stock					Accumulated
	Number of Shares		$0.01 Par Value		Additional Paid-in Capital		Retained Earnings			Number of Shares		Cost			Other Comprehensive Income (Loss)			Total Equity
Balance at January 1, 2018		22,432	$	224	$	181,910	$	123,010			4,391	$	(161,943	)	$	(2,012	)	$	141,189
Issuance of common stock under stock plans, net		461		5		8,703		—			—		—			—			8,708
Cumulative effect adjustment due to adoption of new accounting pronouncements		—		—		—		3,830			—		—			(26	)		3,804
Stock-based compensation expense		—		—		6,190		—			—		—			—			6,190
Repurchases of common stock		—		—		—		—			240		(9,946	)		—			(9,946	)
Dividends paid on common shares		—		—		—		(10,839	)		—		—			—			(10,839	)
Net income		—		—		—		10,005			—		—			—			10,005
Net change in marketable investments, net of tax		—		—		—		—			—		—			12			12
Foreign currency translation		—		—		—		—			—		—			(2,293	)		(2,293	)
Balance at September 30, 2018		22,893	$	229	$	196,803	$	126,006			4,631	$	(171,889	)	$	(4,319	)	$	146,830

Equity Plans

Restricted stock unit activity for the nine months ended September 30, 2019 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2018		497		$	40.89
Granted		434			43.87
Vested		(186	)		39.40
Forfeited		(56	)		43.39
Unvested at September 30, 2019		689		$	42.96

Stock option activity for the nine months ended September 30, 2019 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, 2018		583		$	35.27
Granted		—			—
Exercised		(105	)		34.07
Forfeited		(20	)		35.38
Outstanding at September 30, 2019		458		$	35.54		4.32	$	33,163
Exercisable at September 30, 2019		443		$	35.55		4.24	$	31,430
Vested and expected to vest at September 30, 2019		458		$	35.54		4.32	$	33,163

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation in net income (loss) 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,
	2019		2018		2019		2018
Cost of services and fulfillment	$	1,782	$	1,001	$	4,812	$	3,128
Selling and marketing		441		261		1,366		752
General and administrative		849		858		2,427		2,311
Total	$	3,072	$	2,120	$	8,605	$	6,191

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,
	2019			2018			2019			2018
Average risk-free interest rate		1.89	%		2.34	%		1.89	%		1.80	%
Expected dividend yield		0.0	%		1.6	%		0.0	%		1.9	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		30	%		25	%		30	%		22	%
Weighted average fair value	$	8.29		$	10.87		$	8.29		$	8.72

Dividends

As a result of the acquisition of SiriusDecisions on January 3, 2019 and the related debt incurred to fund the acquisition, the Company suspended its dividend program beginning in 2019. Accordingly, the Company did not declare or pay any dividends in the three and nine months ended September 30, 2019. In the nine months ended September 30, 2018, the Company declared and paid three quarterly dividends of $0.20 per share or $10.8 million in the aggregate.

Treasury Stock

As of September 30, 2019, Forrester’s Board of Directors had authorized an aggregate $535.0 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 nine months ended September 30, 2019, the Company did not repurchase any shares of common stock. In the three months ended September 30, 2018, the Company repurchased an insignificant number of shares at an aggregate cost of approximately $0.3 million. In the nine months ended September 30, 2018, the Company repurchased approximately 0.2 million shares of common stock at an aggregate cost of approximately $10.0 million. From the inception of the program through September 30, 2019, the Company repurchased 16.3 million shares of common stock at an aggregate cost of $474.9 million.