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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Before Income Taxes | Income before income taxes consists of the following (in thousands):
|  | Years Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Domestic |  | $ | 17,718 |  |  | $ | 20,061 |  |  | $ | 22,303 |
Foreign |  |  | 5,807 |  |  |  | 7,310 |  |  |  | 8,406 |
Total |  | $ | 23,525 |  |  | $ | 27,371 |  |  | $ | 30,709 |
Components of the Income Tax Provision | The components of the income tax provision are as follows (in thousands):
|  | Years Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 2,278 |  |  | $ | 2,587 |  |  | $ | 6,094 |
State |  |  | 1,173 |  |  |  | 1,060 |  |  |  | 2,330 |
Foreign |  |  | 1,763 |  |  |  | 2,159 |  |  |  | 2,032 |
Total current |  |  | 5,214 |  |  |  | 5,806 |  |  |  | 10,456 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 2,111 |  |  |  | 5,550 |  |  |  | 2,719 |
State |  |  | 667 |  |  |  | 700 |  |  |  | 59 |
Foreign |  |  | 153 |  |  |  | 175 |  |  |  | (176 | )
Total deferred |  |  | 2,931 |  |  |  | 6,425 |  |  |  | 2,602 |
Income tax provision |  | $ | 8,145 |  |  | $ | 12,231 |  |  | $ | 13,058 |
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, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income tax provision at federal statutory rate |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increase (decrease) in tax resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State tax provision, net of federal benefit |  |  | 6.2 |  |  |  | 4.0 |  |  |  | 5.0 |
Foreign tax rate differential |  |  | (0.2 | ) |  |  | (3.4 | ) |  |  | (4.4 | )
Stock option compensation deduction |  |  | (1.1 | ) |  |  | 0.1 |  |  |  | 0.6 |
Withholding taxes |  |  | 2.1 |  |  |  | 1.7 |  |  |  | 0.5 |
Non-deductible expenses |  |  | 5.3 |  |  |  | 1.8 |  |  |  | 1.5 |
Change in valuation allowance |  |  | — |  |  |  | 3.9 |  |  |  | 3.2 |
Change in tax legislation |  |  | 1.9 |  |  |  | 5.8 |  |  |  | — |
Audit settlements |  |  | — |  |  |  | (4.0 | ) |  |  | — |
Other, net |  |  | (0.6 | ) |  |  | (0.2 | ) |  |  | 1.1 |
Effective tax rate |  |  | 34.6 | % |  |  | 44.7 | % |  |  | 42.5 | %
Components of Deferred Income Taxes | The components of deferred income taxes are as follows (in thousands):
|  | As of December 31, |
|  | 2018 |  |  | 2017 |
Non-deductible reserves and accruals |  | $ | 3,835 |  |  | $ | 4,936 |
Net operating loss and other carryforwards |  |  | 7,954 |  |  |  | 8,528 |
Stock compensation |  |  | 2,125 |  |  |  | 2,644 |
Depreciation and amortization |  |  | 727 |  |  |  | 402 |
Other assets |  |  | — |  |  |  | 46 |
Gross deferred tax asset |  |  | 14,641 |  |  |  | 16,556 |
Less - valuation allowance |  |  | (2,574 | ) |  |  | (2,686 | )
Sub-total |  |  | 12,067 |  |  |  | 13,870 |
Other liabilities |  |  | (1,249 | ) |  |  | (911 | )
Goodwill and intangible assets |  |  | (6,201 | ) |  |  | (5,677 | )
Deferred commissions |  |  | (4,479 | ) |  |  | (3,873 | )
Net deferred tax asset |  | $ | 138 |  |  | $ | 3,409 |
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, 2018, 2017 and 2016 (in thousands):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Deferred tax valuation allowance at January 1 |  | $ | 2,686 |  |  | $ | 2,193 |  |  | $ | 1,534 |
Additions |  |  | 74 |  |  |  | 1,439 |  |  |  | 1,256 |
Deductions |  |  | (139 | ) |  |  | (70 | ) |  |  | (455 | )
Change in tax legislation |  |  | — |  |  |  | (954 | ) |  |  | — |
Translation adjustments |  |  | (47 | ) |  |  | 78 |  |  |  | (142 | )
Deferred tax valuation allowance at December 31 |  | $ | 2,574 |  |  | $ | 2,686 |  |  | $ | 2,193 |
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, 2018, 2017 and 2016 (in thousands):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Unrecognized tax benefits at January 1 |  | $ | 806 |  |  | $ | 1,774 |  |  | $ | 1,910 |
Reductions for tax positions of prior years |  |  | — |  |  |  | — |  |  |  | (31 | )
Additions for tax positions of current year |  |  | — |  |  |  | — |  |  |  | 75 |
Settlements |  |  | — |  |  |  | (986 | ) |  |  | (163 | )
Translation adjustments |  |  | (7 | ) |  |  | 18 |  |  |  | (17 | )
Unrecognized tax benefits at December 31 |  | $ | 799 |  |  | $ | 806 |  |  | $ | 1,774 |

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