Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Future Contractual Obligations for Operating Leases

Under prior GAAP, as of December 31, 2018, the Company’s future contractual obligations for operating leases were as follows (in thousands):

2019	$	12,498
2020		11,762
2021		10,145
2022		8,552
2023		7,856
Thereafter		22,222
Total minimum lease payments	$	73,035

Summary of End-of-period Cash and Cash Equivalents and Cash, Cash Equivalents and Restricted Cash from Financial Statements

The following table summarizes the end-of-period cash and cash equivalents from the Company's Consolidated Balance Sheets and the total cash, cash equivalents and restricted cash as presented in the accompanying Consolidated Statements of Cash Flows (in thousands).

	For the Year Ended December 31,
	2019		2018
Cash and cash equivalents	$	67,904	$	140,296
Restricted cash classified in (1):
Prepaid expenses and other current assets		1,250		—
Other assets		38		—
Cash, cash equivalents and restricted cash shown in statement of cash flows	$	69,192	$	140,296

(1)

Restricted cash consists primarily of collateral required for letters of credit related to the Company’s office space leases. The short-term or long-term classification is determined in accordance with the expiration of the underlying lease as the letters of credit are non-cancellable while the leases are in effect.

Schedule of Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) are as follows (in thousands):

	Net Unrealized Gain (Loss) on			Net Unrealized Gain (Loss) on			Cumulative			Total Accumulated Other
	Marketable Investments			Interest Rate Swaps			Translation Adjustment			Comprehensive Income (Loss)
Balance at December 31, 2016	$	(83	)	$	—		$	(7,490	)	$	(7,573	)
Foreign currency translation		—			—			5,593			5,593
Unrealized loss on investments, net of tax of $22		(32	)		—			—			(32	)
Balance at December 31, 2017		(115	)		—			(1,897	)		(2,012	)
Foreign currency translation		—			—			(3,257	)		(3,257	)
Reclassification of stranded tax effects from tax reform		(26	)		—			—			(26	)
Unrealized gain on investments before reclassification, net of tax of $(4)		12			—			—			12
Reclassification adjustment for net losses realized in net income, net of tax of $(75)		129			—			—			129
Balance at December 31, 2018		—			—			(5,154	)		(5,154	)
Foreign currency translation		—			—			401			401
Unrealized loss on interest rate swap, net of tax of $40		—			(104	)		—			(104	)
Balance at December 31, 2019	$	—		$	(104	)	$	(4,753	)	$	(4,857	)

Summary of Stock-Based Compensation Expense Recorded in Expense Categories

Stock-based compensation expense was recorded in the following expense categories (in thousands):

	Years Ended December 31,
	2019		2018		2017
Cost of services and fulfillment	$	6,627	$	4,329	$	4,538
Selling and marketing		1,768		1,065		717
General and administrative		3,289		2,906		3,235
Total	$	11,684	$	8,300	$	8,490

Shares Subject to Employee Stock Purchase Plan Valuation Assumptions

Shares subject to the employee stock purchase plan were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values (no options were granted in 2019, 2018 or 2017):

	Years Ended December 31,
	2019			2018			2017
Average risk-free interest rate		1.89	%		1.90	%		0.90	%
Expected dividend yield		0.0	%		1.9	%		1.9	%
Expected life	0.5 Years			0.5 Years			0.5 Years
Expected volatility		30	%		23	%		24	%
Weighted average fair value	$	8.29		$	9.13		$	8.36

Depreciation and Amortization of Property and Equipment, Useful Life

Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over estimated useful lives of assets as follows:

		Estimated
		Useful Life
Computers and equipment		3 to 10 Years
Computer software		3 to 5 Years
Furniture and fixtures		7 Years
Leasehold improvements		Shorter of asset life or lease term

Amortization of Intangible Assets, Useful Life

Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over the respective lives as follows:

		Estimated
		Useful Life
Customer relationships		5 to 11 Years
Technology		1 to 8 Years
Backlog		2 Years
Trademarks		8 to 16 Years

Schedule of Basic and Diluted Weighted Average Common Shares

Basic and diluted weighted average common shares are as follows (in thousands):

	Years Ended December 31,
	2019		2018		2017
Basic weighted average common shares outstanding		18,492		18,091		17,919
Weighted average common equivalent shares		—		289		321
Diluted weighted average common shares outstanding		18,492		18,380		18,240
Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive		1,099		8		133