XML 53 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stockholders' Equity
 9 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Stockholders' Equity

Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the nine months ended September 30, 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

      532        38.12         

Exercised

      (182 )      29.89         

Forfeited

      (65 )      34.69         
  

 

 

          

Outstanding at September 30, 2014

      2,019      $ 33.59         7.23       $ 7,452   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable at September 30, 2014

      898      $ 30.29         5.12       $ 5,977   
  

 

 

    

 

 

     

 

 

     

 

 

  

Restricted stock unit activity for the nine months ended September 30, 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

      235        36.67   

Vested or settled

      (96 )      33.99   

Forfeited

      (74 )      33.55   
  

 

 

    

Unvested at September 30, 2014

      437      $ 35.63   
  

 

 

    

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      Nine Months Ended  
     September 30,      September 30,  
     2014      2013      2014      2013  

Cost of services and fulfillment

    $ 1,134       $ 1,061       $ 3,005       $ 2,708   

Selling and marketing

      302         321         767         893   

General and administrative

      547         478         1,376         987   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,983       $ 1,860       $ 5,148       $ 4,588   
  

 

 

     

 

 

     

 

 

     

 

 

  

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     Three Months Ended  
     September 30, 2014     September 30, 2013  
     Equity Incentive     Employee Stock     Equity Incentive     Employee Stock  
     Plans     Purchase Plan     Plans     Purchase Plan  

Average risk-free interest rate

      1.70 %      0.06 %      1.40 %      0.08 % 

Expected dividend yield

      1.8 %      1.8 %      2.1 %      2.1 % 

Expected life

      5.1 Years        0.5 Years        4.9 Years        0.5 Years   

Expected volatility

      25 %      23 %      36 %      19 % 

Weighted average fair value

    $ 7.68      $ 8.00      $ 9.94      $ 6.02   
     Nine Months Ended
September 30, 2014		     Nine Months Ended
September 30, 2013		  
     Equity Incentive     Employee Stock     Equity Incentive     Employee Stock  
     Plans     Purchase Plan     Plans     Purchase Plan  

Average risk-free interest rate

      1.69 %      0.06 %      0.81 %      0.08 % 

Expected dividend yield

      1.8 %      1.8 %      2.1 %      2.1 % 

Expected life

      5.1 Years        0.5 Years        4.9 Years        0.5 Years   

Expected volatility

      26 %      23 %      37 %      19 % 

Weighted average fair value

    $ 7.91      $ 8.00      $ 9.15      $ 6.02   

Dividends

In the nine months ended September 30, 2014, the Company declared and paid dividends of $9.1 million consisting of a $0.16 per share dividend in each of the first three quarters of 2014. In the nine months ended September 30, 2013, the Company declared and paid dividends of $9.4 million consisting of a $0.15 per share dividend in each of the first three quarters of 2013. In October 2014 the Company declared a dividend of $0.16 per share payable on December 17, 2014 to shareholders of record as of December 3, 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 nine months ended September 30, 2014, the Company repurchased approximately 1.8 million shares of common stock at an aggregate cost of approximately $66.6 million. From the inception of the program through September 30, 2014, Forrester repurchased approximately 14.2 million shares of common stock at an aggregate cost of approximately $395.6 million.