Stockholders' Equity

6 Months Ended

Jun. 30, 2019

Note 11 — Stockholders’ Equity

The components of stockholders’ equity are as follows (in thousands):

	Common Stock									Treasury Stock					Accumulated
	Number		$0.01		Additional					Number					Other
	of		Par		Paid-in		Retained			of					Comprehensive			Total
	Shares		Value		Capital		Earnings			Shares		Cost			Income (Loss)			Equity
Balance at January 1, 2019		22,951	$	230	$	200,696	$	127,717			4,631	$	(171,889	)	$	(5,154	)	$	151,600
Issuance of common stock under stock plans, net		138		1		4,149		—			—		—			—			4,150
Stock-based compensation expense		—		—		5,533		—			—		—			—			5,533
Net loss		—		—		—		(11,761	)		—		—			—			(11,761	)
Foreign currency translation		—		—		—		—			—		—			164			164
Balance at June 30, 2019		23,089	$	231	$	210,378	$	115,956			4,631	$	(171,889	)	$	(4,990	)	$	149,686

	Common Stock									Treasury Stock					Accumulated
	Number		$0.01		Additional					Number					Other
	of		Par		Paid-in		Retained			of					Comprehensive			Total
	Shares		Value		Capital		Earnings			Shares		Cost			Income (Loss)			Equity
Balance at January 1, 2018		22,432	$	224	$	181,910	$	123,010			4,391	$	(161,943	)	$	(2,012	)	$	141,189
Issuance of common stock under stock plans, net		132		2		3,573		—			—		—			—			3,575
Cumulative effect adjustment due to adoption of new accounting pronouncements		—		—		—		3,829			—		—			(26	)		3,803
Stock-based compensation expense		—		—		4,071		—			—		—			—			4,071
Repurchases of common stock		—		—		—		—			233		(9,642	)		—			(9,642	)
Dividends paid on common shares		—		—		—		(7,196	)		—		—			—			(7,196	)
Net income		—		—		—		6,055			—		—			—			6,055
Net change in marketable investments, net of tax		—		—		—		—			—		—			(53	)		(53	)
Foreign currency translation		—		—		—		—			—		—			(1,691	)		(1,691	)
Balance at June 30, 2018		22,564	$	226	$	189,554	$	125,698			4,624	$	(171,585	)	$	(3,782	)	$	140,111

	Common Stock								Treasury Stock					Accumulated
	Number		$0.01		Additional				Number					Other
	of		Par		Paid-in		Retained		of					Comprehensive			Total
	Shares		Value		Capital		Earnings		Shares		Cost			Income (Loss)			Equity
Balance at April 1, 2019		23,050	$	231	$	206,655	$	114,401		4,631	$	(171,889	)	$	(5,584	)	$	143,814
Issuance of common stock under stock plans, net		39		—		875		—		—		—			—			875
Stock-based compensation expense		—		—		2,848		—		—		—			—			2,848
Net income		—		—		—		1,555		—		—			—			1,555
Foreign currency translation		—		—		—		—		—		—			594			594
Balance at June 30, 2019		23,089	$	231	$	210,378	$	115,956		4,631	$	(171,889	)	$	(4,990	)	$	149,686

	Common Stock									Treasury Stock					Accumulated
	Number		$0.01		Additional					Number					Other
	of		Par		Paid-in		Retained			of					Comprehensive			Total
	Shares		Value		Capital		Earnings			Shares		Cost			Income (Loss)			Equity
Balance at April 1, 2018		22,514	$	225	$	186,335	$	121,495			4,497	$	(166,310	)	$	(450	)	$	141,295
Issuance of common stock under stock plans, net		50		1		1,111		—			—		—			—			1,112
Stock-based compensation expense		—		—		2,108		—			—		—			—			2,108
Repurchases of common stock		—		—		—		—			127		(5,275	)		—			(5,275	)
Dividends paid on common shares		—		—		—		(3,585	)		—		—			—			(3,585	)
Net income		—		—		—		7,788			—		—			—			7,788
Net change in marketable investments, net of tax		—		—		—		—			—		—			62			62
Foreign currency translation		—		—		—		—			—		—			(3,394	)		(3,394	)
Balance at June 30, 2018		22,564	$	226	$	189,554	$	125,698			4,624	$	(171,585	)	$	(3,782	)	$	140,111

Equity Plans

Restricted stock unit activity for the six months ended June 30, 2019 is presented below (in thousands, except per share data):

				Weighted-
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2018		497		$	40.89
Granted		190			45.14
Vested		(22	)		38.89
Forfeited		(39	)		43.10
Unvested at June 30, 2019		626		$	42.11

Stock option activity for the six months ended June 30, 2019 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, 2018		583		$	35.27
Granted		—			—
Exercised		(95	)		34.31
Forfeited		(18	)		35.46
Outstanding at June 30, 2019		470		$	35.46		4.62	$	5,433
Exercisable at June 30, 2019		404		$	35.67		4.34	$	4,589
Vested and expected to vest at June 30, 2019		470		$	35.46		4.62	$	5,433

Stock-Based Compensation

Forrester recognizes the fair value of stock-based compensation in net income (loss) 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,
	2019		2018		2019		2018
Cost of services and fulfillment	$	1,567	$	1,108	$	3,030	$	2,127
Selling and marketing		485		246		925		491
General and administrative		796		754		1,578		1,453
Total	$	2,848	$	2,108	$	5,533	$	4,071

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,
	2019			2018			2019			2018
Average risk-free interest rate		2.51	%		1.92	%		2.51	%		1.62	%
Expected dividend yield		0.0	%		2.0	%		0.0	%		2.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		34	%		22	%		34	%		22	%
Weighted average fair value	$	12.50		$	8.49		$	12.50		$	8.50

Dividends

As a result of the acquisition of SiriusDecisions on January 3, 2019 and the related debt incurred to fund the acquisition, the Company suspended its dividend program beginning in 2019. Accordingly, the Company did not declare or pay any dividends in the three and six months ended June 30, 2019. In the six months ended June 30, 2018, the Company declared and paid two quarterly dividends of $0.20 per share or $7.2 million in the aggregate.

Treasury Stock

As of June 30, 2019, Forrester’s Board of Directors had authorized an aggregate $535.0 million to purchase common stock under its stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. In the six months ended June 30, 2019, the Company did not repurchase any shares of common stock. In the three and six months ended June 30, 2018, the Company repurchased approximately 0.1 million and 0.2 million shares of common stock at an aggregate cost of approximately $5.3 million and $9.6 million, respectively. From the inception of the program through June 30, 2019, the Company repurchased 16.3 million shares of common stock at an aggregate cost of $474.9 million.