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Income Taxes
3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8 — Income Taxes

Forrester provides for income taxes on an interim basis according to management’s estimate of the effective tax rate expected to be applicable for the full fiscal year. Certain items such as changes in tax rates and tax benefits related to disqualifying dispositions of incentive stock options are treated as discrete items and are recorded in the period in which they arise.

 

Income tax expense for the three months ended March 31, 2016 was $1.1 million resulting in an effective tax rate of 46% for the period. Income tax benefit for the three months ended March 31, 2015 was $0.2 million resulting from losses of $0.5 million in the period. Income tax expense increased by $1.3 million during the three months ended March 31, 2016 compared to the prior year period due primarily to a $2.8 million increase in income before taxes during the current year period. Due to the low amount of income before taxes during the three months ended March 31, 2016, the effective tax rate is not considered meaningful or representative of the full year effective tax rate. For the full year 2016 the Company anticipates that its effective tax rate will be approximately 40%.