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Stockholders' Equity
 3 Months Ended
Mar. 31, 2014
Equity [Abstract]  
Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the three months ended March 31, 2014 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, 2013

      1,734      $ 31.85         

Granted

      83        36.96         

Exercised

      (30 )      27.58         

Forfeited

      (15 )      33.65         
  

 

 

          

Outstanding at March 31, 2014

      1,772      $ 32.14         6.95       $ 7,076   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable at March 31, 2014

      790      $ 28.96         4.92       $ 5,536   
  

 

 

    

 

 

     

 

 

     

 

 

  

Restricted stock unit activity for the three months ended March 31, 2014 is presented below (in thousands, except per share data):

 

     Number of
Shares		     Weighted-
Average
Grant Date
Fair Value		  

Unvested at December 31, 2013

      372      $ 34.14   

Granted

      —       

Vested or settled

      —       

Forfeited

      (54 )      33.14   
  

 

 

    

Unvested at March 31, 2014

      318      $ 34.31   
  

 

 

    

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,		  
     2014      2013  

Cost of services and fulfillment

    $ 1,073       $ 904   

Selling and marketing

      338         422   

General and administrative

      536         534   
  

 

 

     

 

 

  

Total

    $ 1,947       $ 1,860   
  

 

 

     

 

 

  

 

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
March 31, 2014		     Three Months Ended
March 31, 2013		  
    Equity Incentive
Plans		     Employee Stock
Purchase Plan		     Equity Incentive
Plans		     Employee Stock
Purchase Plan		  

Average risk-free interest rate

     1.65 %      0.08 %      0.81 %      0.11 % 

Expected dividend yield

     1.8 %      1.8 %      2.1 %      2.1 % 

Expected life

     5.1 Years        0.5 Years        4.5 Years        0.5 Years   

Expected volatility

     30 %      25 %      40 %      25 % 

Weighted average fair value

   $ 8.79      $ 7.81      $ 7.72      $ 5.97   

Dividends

In the three months ended March 31, 2014, the Company declared and paid a dividend of $0.16 per share or $3.1 million in the aggregate. In the three months ended March 31, 2013, the Company declared and paid a dividend of $0.15 per share or $3.4 million in the aggregate. In April 2014, the Company declared a dividend of $0.16 per share payable on June 18, 2014 to shareholders of record as of June 4, 2014.

Treasury Stock

Forrester’s Board of Directors has authorized an aggregate $410.0 million to purchase common stock under its stock repurchase program, including $25.0 million authorized in April 2014. The shares repurchased may be used, among other things, in connection with Forrester’s employee and director equity incentive and purchase plans. In the three months ended March 31, 2014, the Company repurchased approximately 0.8 million shares of common stock at an aggregate cost of approximately $29.7 million. From the inception of the program through March 31, 2014, Forrester repurchased approximately 13.2 million shares of common stock at an aggregate cost of approximately $358.8 million.