Note 7 — Stockholders’ Equity

Equity Plans

Stock option activity for the six months ended June 30, 2017 is presented below (in thousands, except per share data and contractual term):

				Weighted -		Weighted -
				Average		Average
				Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2016		1,540		$	34.35
Granted		—			—
Exercised		(127	)		31.70
Forfeited		(33	)		34.32
Outstanding at June 30, 2017		1,380		$	34.60		6.05	$	6,321
Exercisable at June 30, 2017		859		$	34.03		5.00	$	4,403
Vested and expected to vest at June 30, 2017		1,380		$	34.60		6.05	$	6,321

Restricted stock unit activity for the six months ended June 30, 2017 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2016		539		$	35.50
Granted		39			38.87
Vested		(56	)		34.32
Forfeited		(18	)		35.05
Unvested at June 30, 2017		504		$	35.91

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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Cost of services and fulfillment	$	1,103	$	870	$	2,299	$	2,064
Selling and marketing		202		109		364		423
General and administrative		891		647		1,582		1,274
Total	$	2,196	$	1,626	$	4,245	$	3,761

Forrester utilizes the Black-Scholes valuation model for estimating the fair value of shares subject to purchase under the employee stock purchase plan, which were valued using the following assumptions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Average risk-free interest rate		0.88	%		0.47	%		0.74	%		0.47	%
Expected dividend yield		1.9	%		2.3	%		1.9	%		2.3	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		28	%		27	%		26	%		27	%
Weighted average fair value	$	8.49		$	7.06		$	8.21		$	7.06

Dividends

In the six months ended June 30, 2017, the Company declared and paid dividends of $6.8 million consisting of a $0.19 per share dividend in each of the first two quarters of 2017. In the six months ended June 30, 2016, the Company declared and paid dividends of $6.4 million consisting of a $0.18 per share dividend in each of the first two quarters of 2016. In July 2017, the Company declared a dividend of $0.19 per share payable on September 20, 2017 to shareholders of record as of September 6, 2017.

Treasury Stock

As of June 30, 2017, Forrester’s Board of Directors had authorized an aggregate $485.0 million to purchase common stock under its 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. In the three and six months ended June 30, 2017, the Company repurchased approximately 0.4 and 1.0 million shares, respectively, of common stock at an aggregate cost of approximately $15.0 and $36.5 million, respectively. The Company did not repurchase shares of common stock in the six months ended June 30, 2016. From the inception of the program through June 30, 2017, Forrester repurchased 16.0 million shares of common stock at an aggregate cost of $461.4 million.