Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Note 12 — Stockholders’ Equity

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

	Three Months Ended September 30, 2020
	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 June 30, 2020		23,401	$	234	$	222,778		$	129,314			4,631	$	(171,889	)	$	(7,028	)	$	173,409
Issuance of common stock under stock plans, net		178		2		(422	)		—			—		—			—			(420	)
Stock-based compensation expense		—		—		2,697			—			—		—			—			2,697
Net loss		—		—		—			(3,760	)		—		—			—			(3,760	)
Other comprehensive income		—		—		—			—			—		—			2,782			2,782
Balance at September 30, 2020		23,579	$	236	$	225,053		$	125,554			4,631	$	(171,889	)	$	(4,246	)	$	174,708

	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 June 30, 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	)
Other comprehensive loss		—		—		—			—			—		—			(1,614	)		(1,614	)
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, 2020
	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 December 31, 2019		23,275	$	233	$	216,454	$	118,147			4,631	$	(171,889	)	$	(4,857	)	$	158,088
Issuance of common stock under stock plans, net		304		3		635		—			—		—			—			638
Stock-based compensation expense		—		—		7,964		—			—		—			—			7,964
Cumulative effect adjustment due to adoption of new accounting pronouncement, net of tax of $61		—		—		—		(157	)		—		—			—			(157	)
Net income		—		—		—		7,564			—		—			—			7,564
Other comprehensive income		—		—		—		—			—		—			611			611
Balance at September 30, 2020		23,579	$	236	$	225,053	$	125,554			4,631	$	(171,889	)	$	(4,246	)	$	174,708

	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 December 31, 2018		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	)
Other comprehensive loss		—		—		—		—			—		—			(1,450	)		(1,450	)
Balance at September 30, 2019		23,247	$	232	$	212,656	$	113,257			4,631	$	(171,889	)	$	(6,604	)	$	147,652

Equity Plans

Restricted stock unit activity for the nine months ended September 30, 2020 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2019		656		$	42.94
Granted		355			35.10
Vested		(267	)		42.21
Forfeited		(84	)		43.60
Unvested at September 30, 2020		660		$	38.94

Stock option activity for the nine months ended September 30, 2020 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, 2019		436		$	35.62
Granted		—			—
Exercised		(29	)		32.94
Forfeited		(53	)		37.75
Outstanding at September 30, 2020		354		$	35.52		3.26	$	28
Vested and Exercisable at September 30, 2020		354		$	35.52		3.26	$	28

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation 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 the Consolidated Statements of Operations (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Cost of services and fulfillment	$	1,638	$	1,782	$	4,463	$	4,812
Selling and marketing		446		441		1,231		1,366
General and administrative		613		849		2,270		2,427
Total	$	2,697	$	3,072	$	7,964	$	8,605

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,
	2020			2019			2020			2019
Average risk-free interest rate		0.12	%		1.89	%		0.12	%		1.89	%
Expected dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		93	%		30	%		93	%		30	%
Weighted average fair value	$	14.57		$	8.29		$	14.57		$	8.29

Dividends

In 2019, the Company suspended its dividends program as a result of the acquisition of SiriusDecisions on January 3, 2019 (refer to Note 2 – Acquisitions), and the related debt incurred to fund the acquisition (refer to Note 4 – Debt). The Company did not declare or pay any dividends in the nine months ended September 30, 2020 and 2019, respectively.

Treasury Stock

As of September 30, 2020, 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, 2020 and 2019, the Company did not repurchase any shares of common stock. From the inception of the program through September 30, 2020, the Company repurchased 16.3 million shares of common stock at an aggregate cost of $474.9 million.