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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Before Income Taxes | Income before income taxes consists of the following (in thousands):
|  | Years Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  | $ | 22,303 |  |  | $ | 11,347 |  |  | $ | 12,939 |
Foreign |  |  | 8,406 |  |  |  | 7,973 |  |  |  | 5,450 |
Total |  | $ | 30,709 |  |  | $ | 19,320 |  |  | $ | 18,389 |
Components of the Income Tax Provision (benefit) | The components of the income tax provision (benefit) are as follows (in thousands):
|  | Years Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,094 |  |  | $ | 5,103 |  |  | $ | 11,644 |
State |  |  | 2,330 |  |  |  | 1,252 |  |  |  | 2,239 |
Foreign |  |  | 2,032 |  |  |  | 1,954 |  |  |  | 1,167 |
Total current |  |  | 10,456 |  |  |  | 8,309 |  |  |  | 15,050 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 2,719 |  |  |  | (723 | ) |  |  | (6,470 | )
State |  |  | 59 |  |  |  | (232 | ) |  |  | (1,095 | )
Foreign |  |  | (176 | ) |  |  | (30 | ) |  |  | 39 |
Total deferred |  |  | 2,602 |  |  |  | (985 | ) |  |  | (7,526 | )
Income tax provision |  | $ | 13,058 |  |  | $ | 7,324 |  |  | $ | 7,524 |
Reconciliation of the Federal Statutory Rate | A reconciliation of the federal statutory rate to Forrester’s effective tax rate is as follows:
|  | Years Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Income tax provision at federal statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increase (decrease) in tax resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State tax provision, net of federal benefit |  |  | 5.0 |  |  |  | 4.0 |  |  |  | 4.2 |
Foreign tax rate differential |  |  | (3.9 | ) |  |  | (2.7 | ) |  |  | (3.2 | )
Stock option compensation deduction |  |  | 0.6 |  |  |  | 2.5 |  |  |  | 2.6 |
Non-deductible expenses |  |  | 1.5 |  |  |  | 1.7 |  |  |  | 1.1 |
Change in valuation allowance |  |  | 3.2 |  |  |  | (0.7 | ) |  |  | (1.0 | )
Change in tax legislation |  |  | — |  |  |  | (3.1 | ) |  |  | — |
Out-of-period adjustment |  |  | — |  |  |  | — |  |  |  | 2.5 |
Other, net |  |  | 1.1 |  |  |  | 1.2 |  |  |  | (0.3 | )
Effective tax rate |  |  | 42.5 | % |  |  | 37.9 | % |  |  | 40.9 | %
Components of Deferred Income Taxes | The components of deferred income taxes are as follows (in thousands):
|  | As of December 31, |
|  | 2016 |  |  | 2015 |
Non-deductible reserves and accruals |  | $ | 8,189 |  |  | $ | 9,795 |
Net operating loss and other carryforwards |  |  | 7,560 |  |  |  | 7,862 |
Stock compensation |  |  | 5,327 |  |  |  | 5,900 |
Depreciation and amortization |  |  | 1,196 |  |  |  | 813 |
Other assets |  |  | 50 |  |  |  | 490 |
Gross deferred tax asset |  |  | 22,322 |  |  |  | 24,860 |
Less - valuation allowance |  |  | (2,193 | ) |  |  | (1,534 | )
Sub-total |  |  | 20,129 |  |  |  | 23,326 |
Depreciation and amortization |  |  | (453 | ) |  |  | — |
Goodwill amortization |  |  | (5,013 | ) |  |  | (5,097 | )
Deferred commissions |  |  | (4,928 | ) |  |  | (5,344 | )
Net deferred tax asset |  | $ | 9,735 |  |  | $ | 12,885 |
Summary of Changes in Deferred Tax Valuation Allowance | The following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2016, 2015 and 2014 (in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Deferred tax valuation allowance at January 1 |  | $ | 1,534 |  |  | $ | 1,565 |  |  | $ | 2,200 |
Additions |  |  | 1,256 |  |  |  | 150 |  |  |  | 17 |
Deductions |  |  | (455 | ) |  |  | (134 | ) |  |  | (574 | )
Translation adjustments |  |  | (142 | ) |  |  | (47 | ) |  |  | (78 | )
Deferred tax valuation allowance at December 31 |  | $ | 2,193 |  |  | $ | 1,534 |  |  | $ | 1,565 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is summarized as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Unrecognized tax benefits at January 1 |  | $ | 1,910 |  |  | $ | 2,136 |  |  | $ | 2,012 |
Additions for tax positions of prior years |  |  | — |  |  |  | 36 |  |  |  | 6 |
Reductions for tax positions of prior years |  |  | (31 | ) |  |  | — |  |  |  | — |
Additions for tax positions of current year |  |  | 75 |  |  |  | 46 |  |  |  | 121 |
Settlements |  |  | (163 | ) |  |  | (303 | ) |  |  | — |
Lapse of statute of limitations |  |  | — |  |  |  | — |  |  |  | — |
Translation adjustments |  |  | (17 | ) |  |  | (5 | ) |  |  | (3 | )
Unrecognized tax benefits at December 31 |  | $ | 1,774 |  |  | $ | 1,910 |  |  | $ | 2,136 |

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