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Stockholders' Equity
 3 Months Ended
Mar. 31, 2012
Stockholders' Equity [Abstract]  
Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the three months ended March 31, 2012 is presented below (in thousands, except per share data):

 

                                 
    Number
of Shares		     Weighted -
Average
Exercise
Price Per
Share		     Weighted -
Average
Remaining
Contractual
Term (in years)		     Aggregate
Intrinsic
Value		  
         

Outstanding at December 31, 2011

     2,130     $ 27.46                  

Granted

     39       34.68                  

Exercised

     (85 )      23.44                  

Forfeited

     (18 )      29.60                  
   

 

 

                          

Outstanding at March 31, 2012

     2,066     $ 27.74       6.35     $ 10,490  
   

 

 

    

 

 

    

 

 

    

 

 

  

Exercisable at March 31, 2012

     1,231     $ 25.42       4.96     $ 8,635  
   

 

 

    

 

 

    

 

 

    

 

 

  

Restricted stock unit activity for the three months ended March 31, 2012 is presented below (in thousands, except per share data):

 

                 
    Number of
Shares		     Weighted-
Average
Grant Date
Fair Value		  

Unvested at December 31, 2011

     267     $ 29.93  

Granted

     —         —    

Vested or settled

     (2 )      26.67  

Forfeited

     (6 )      33.94  
   

 

 

          

Unvested at March 31, 2012

     259     $ 29.96  
   

 

 

          

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
March 31,		  
    2012     2011  

Cost of services and fulfillment

   $ 653     $ 615  

Selling and marketing

     224       339  

General and administrative

     446       484  
   

 

 

    

 

 

  

Total

   $ 1,323     $ 1,438  
   

 

 

    

 

 

  

In 2009, the Company issued to its employees 95,496 performance-based RSUs. The vesting of the RSUs was subject to performance criteria and would vest at 100% or 40% on April 1, 2012, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2011 performance were achieved. Based on 2011 financial performance, 40% of the then outstanding RSUs vested on April 1, 2012. Compensation expense in 2010 and 2009 was recognized based on an estimate of 100% vesting of the RSUs and in the second quarter of 2011 the Company modified it assessment of vesting to the 40% level.

In 2010, the Company issued to its employees approximately 63,000 performance-based RSUs. The vesting of the RSUs is subject to performance criteria and will vest at 100% or 40% on April 1, 2013, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2012 performance are achieved. Compensation expense through the third quarter of 2011 was recognized based on an estimate of 100% vesting of the RSUs and in the fourth quarter of 2011 the Company modified its assessment of vesting to a zero percent level. The Company continued to utilize a zero percent vesting estimate in the first quarter of 2012. In addition, Forrester issued approximately 42,000 RSUs during 2010 that generally vest equally over a four-year period.

In 2011, the Company issued to its employees approximately 71,000 performance-based RSUs. The vesting of the RSUs is subject to performance criteria and will vest at 100% or 40% on April 1, 2014, or the RSUs could be forfeited, depending on whether specified revenue growth and certain operating margin targets related to full year 2013 performance are achieved. Compensation expense through the third quarter of 2011 was recognized based on an estimate of 100% vesting of the RSUs and in the fourth quarter of 2011 the Company modified its assessment of vesting to a zero percent level. The Company continued to utilize a zero percent vesting estimate in the first quarter of 2012. In addition, Forrester issued approximately 48,000 RSUs during 2011 that generally vest equally over a four-year period.

 

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of stock-based compensation. 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
March 31, 2012		     Three Months Ended
March 31, 2011		  
    Equity Incentive
Plans		     Employee Stock
Purchase Plan		     Equity Incentive
Plans		     Employee Stock
Purchase Plan		  

Average risk-free interest rate

     0.84 %      0.14 %      1.51 %      0.18 % 

Expected dividend yield

     1.7 %      1.7 %      None       None  

Expected life

     4.5 Years       0.5 Years       3.5 Years       0.5 Years  

Expected volatility

     40 %      31 %      40 %      28 % 

Weighted average fair value

   $ 10.05     $ 7.54     $ 11.05     $ 8.23  

Dividends

In the first quarter of 2012, the Company declared and paid a dividend of $0.14 per share or $3.2 million in the aggregate. In April 2012, the Company declared a dividend of $0.14 per share payable on June 20, 2012 to shareholders of record as of June 6, 2012.

Treasury Stock

Forrester’s Board of Directors has authorized an aggregate $260.0 million to purchase common stock under the 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. As of March 31, 2012, Forrester had repurchased approximately 8.5 million shares of common stock at an aggregate cost of approximately $188.7 million.