Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August 4,~~November 3, 2017 ~~17,734,000~~17,975,000 shares of the registrant’s common stock were outstanding.

		June 30,			December 31,				September 30,			December 31,
		2017			2016				2017			2016
ASSETS	ASSETS							ASSETS
Current Assets:
Cash and cash equivalents		$	67,106		$	76,958			$	79,960		$	76,958
Marketable investments (Note 3)			58,129			61,147				54,019			61,147
Accounts receivable, net			50,954			58,812				39,481			58,812
Deferred commissions			10,578			12,052				9,146			12,052
Prepaid expenses and other current assets			13,223			14,467				15,817			14,467
Total current assets			199,990			223,436				198,423			223,436
Property and equipment, net			24,439			23,894				26,128			23,894
Goodwill			75,024			73,193				75,815			73,193
Intangible assets, net			1,109			1,464				927			1,464
Other assets			13,631			13,798				13,095			13,798
Total assets		$	314,193		$	335,785			$	314,388		$	335,785

LIABILITIES AND STOCKHOLDERS' EQUITY	LIABILITIES AND STOCKHOLDERS' EQUITY							LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	1,080		$	1,806			$	613		$	1,806
Accrued expenses and other current liabilities			32,349			41,403				36,838			41,403
Deferred revenue			145,350			134,265				132,929			134,265
Total current liabilities			178,779			177,474				170,380			177,474
Non-current liabilities			8,040			8,275				8,788			8,275
Total liabilities			186,819			185,749				179,168			185,749

Stockholders' Equity (Note 7):
Preferred stock, $0.01 par value
Authorized - 500 shares; issued and outstanding - none			—			—				—			—
Common stock, $0.01 par value
Authorized - 125,000 shares
Issued - 21,914 and 21,719 shares as of June 30, 2017 and December 31, 2016, respectively
Outstanding - 17,612 and 18,361 shares as of June 30, 2017 and December 31, 2016, respectively			219			217
Issued - 22,293 and 21,719 shares as of September 30, 2017 and December 31, 2016, respectively
Outstanding - 17,902 and 18,361 shares as of September 30, 2017 and December 31, 2016, respectively										223			217
Additional paid-in capital			166,022			157,569				175,218			157,569
Retained earnings			123,780			121,799				124,343			121,799
Treasury stock - 4,302 and 3,358 shares as of June 30, 2017 and December 31, 2016, respectively, at cost			(158,402	)		(121,976	)
Treasury stock - 4,391 and 3,358 shares as of September 30, 2017 and December 31, 2016, respectively, at cost										(161,943	)		(121,976	)
Accumulated other comprehensive loss			(4,245	)		(7,573	)			(2,621	)		(7,573	)
Total stockholders’ equity			127,374			150,036				135,220			150,036
Total liabilities and stockholders’ equity		$	314,193		$	335,785			$	314,388		$	335,785

The accompanying notes are an integral part of these consolidated financial statements.

	Three Months Ended						Six Months Ended						Three Months Ended						Nine Months Ended
	June 30,						June 30,						September 30,						September 30,
	2017			2016			2017			2016			2017			2016			2017			2016
Revenues:
Research services	$	54,575		$	55,023		$	106,318		$	108,271		$	54,235		$	52,727		$	160,553		$	160,998
Advisory services and events		35,158			32,798			60,609			56,951			26,134			24,700			86,743			81,651
Total revenues		89,733			87,821			166,927			165,222			80,369			77,427			247,296			242,649
Operating expenses:
Cost of services and fulfillment		36,910			34,417			68,306			65,540			32,508			29,889			100,814			95,429
Selling and marketing		30,508			29,335			61,130			59,739			29,225			27,751			90,355			87,490
General and administrative		10,419			10,300			20,589			20,273			10,083			10,086			30,672			30,359
Depreciation		1,489			2,076			3,168			4,041			1,607			1,941			4,775			5,982
Amortization of intangible assets		194			210			385			419			197			208			582			627
Reorganization costs		—			11			—			1,026			—			—			—			1,026
Total operating expenses		79,520			76,349			153,578			151,038			73,620			69,875			227,198			220,913
Income from operations		10,213			11,472			13,349			14,184			6,749			7,552			20,098			21,736
Other income, net		93			473			102			145			146			229			248			374
Losses on investments, net		(22	)		(54	)		(225	)		(54	)		(772	)		(1,085	)		(997	)		(1,139	)
Income before income taxes		10,284			11,891			13,226			14,275			6,123			6,696			19,349			20,971
Income tax provision		4,220			4,431			4,132			5,526			2,170			3,584			6,302			9,110
Net income	$	6,064		$	7,460		$	9,094		$	8,749		$	3,953		$	3,112		$	13,047		$	11,861

Basic income per common share	$	0.34		$	0.42		$	0.51		$	0.49		$	0.22		$	0.17		$	0.73		$	0.66

Diluted income per common share	$	0.34		$	0.41		$	0.50		$	0.49		$	0.22		$	0.17		$	0.72		$	0.65

Basic weighted average common shares outstanding		17,715			17,863			17,973			17,812			17,747			18,062			17,897			17,896

Diluted weighted average common shares outstanding		18,050			18,145			18,293			18,035			18,051			18,435			18,212			18,168

Cash dividends declared per common share	$	0.19		$	0.18		$	0.38		$	0.36		$	0.19		$	0.18		$	0.57		$	0.54

The accompanying notes are an integral part of these consolidated financial statements.

	Three Months Ended					Six Months Ended				Three Months Ended					Nine Months Ended
	June 30,					June 30,				September 30,					September 30,
	2017		2016			2017		2016		2017		2016			2017		2016
Net income	$	6,064	$	7,460		$	9,094	$	8,749	$	3,953	$	3,112		$	13,047	$	11,861

Other comprehensive income (loss), net of taxes:
Foreign currency translation		2,514		(1,429	)		3,304		52		1,601		(120	)		4,905		(68	)
Net change in market value of investments		7		3			24		120		23		(48	)		47		72
Other comprehensive income (loss)		2,521		(1,426	)		3,328		172		1,624		(168	)		4,952		4
Comprehensive income	$	8,585	$	6,034		$	12,422	$	8,921	$	5,577	$	2,944		$	17,999	$	11,865

The accompanying notes are an integral part of these consolidated financial statements.

	Six Months Ended						Nine Months Ended
	June 30,						September 30,
	2017			2016			2017			2016

Cash flows from operating activities:
Net income	$	9,094		$	8,749		$	13,047		$	11,861
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		3,168			4,041			4,775			5,982
Amortization of intangible assets		385			419			582			627
Net losses from investments		225			54			997			1,139
Deferred income taxes		(691	)		(1,409	)		(921	)		(413	)
Stock-based compensation		4,245			3,761			6,423			5,731
Amortization of premium on investments		128			187			171			267
Foreign currency losses		360			147			444			98
Changes in assets and liabilities
Accounts receivable		8,457			24,445			20,140			31,078
Deferred commissions		1,475			1,953			2,906			3,890
Prepaid expenses and other current assets		1,470			962			(979	)		2,322
Accounts payable		(730	)		189			(1,208	)		133
Accrued expenses and other liabilities		(10,304	)		(10,128	)		(6,041	)		(10,101	)
Deferred revenue		9,611			(1,915	)		(3,473	)		(14,309	)
Net cash provided by operating activities		26,893			31,455			36,863			38,305
Cash flows from investing activities:
Purchases of property and equipment		(3,240	)		(2,318	)		(5,806	)		(3,334	)
Purchases of marketable investments		(25,685	)		(23,902	)		(27,430	)		(35,555	)
Proceeds from sales and maturities of marketable investments		28,612			14,025			34,458			20,086
Other investing activity		224			(35	)		200			(49	)
Net cash used in investing activities		(89	)		(12,230	)
Net cash provided by (used in) investing activities								1,422			(18,852	)
Cash flows from financing activities:
Dividends paid on common stock		(6,815	)		(6,428	)		(10,205	)		(9,696	)
Repurchases of common stock		(36,426	)		—			(39,967	)		—
Proceeds from issuance of common stock under employee equity incentive plans		4,872			4,147			13,866			9,987
Taxes paid related to net share settlements of stock-based compensation awards		(537	)		(763	)		(2,511	)		(2,069	)
Net cash used in financing activities		(38,906	)		(3,044	)		(38,817	)		(1,778	)
Effect of exchange rate changes on cash and cash equivalents		2,250			(656	)		3,534			(870	)
Net increase (decrease) in cash and cash equivalents		(9,852	)		15,525
Net increase in cash and cash equivalents								3,002			16,805
Cash and cash equivalents, beginning of period		76,958			53,331			76,958			53,331
Cash and cash equivalents, end of period	$	67,106		$	68,856		$	79,960		$	70,136

The accompanying notes are an integral part of these consolidated financial statements.

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. (“Forrester”) Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive income and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and ~~six~~nine months ended ~~June~~September 30, 2017 may not be indicative of the results for the year ending December 31, 2017, or any other period.

The carrying amounts reflected in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. See Note 3 – Marketable Investments - for the fair value of the Company’s marketable investments.

The Company adopted the guidance in Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting, on January 1, 2017. Under this standard, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as previously required, or to recognize forfeitures as they occur. The Company has elected to recognize forfeitures as they occur and the impact of that change in accounting policy has been recorded as a $0.2 million cumulative effect adjustment to increase retained earnings as of January 1, 2017.

Additionally, ASU No. 2016-09 requires that all income tax effects related to settlements of share-based payment awards be reported in earnings as an increase or decrease to income tax expense. Previously, income tax effects at settlement of an award were reported as an increase (or decrease) to additional paid-in capital to the extent that those benefits were greater than (or less than) the income tax effects reported in earnings during the award's vesting period. The requirement to report those income tax effects in earnings has been applied on a prospective basis to settlements occurring on or after January 1, 2017, and the impact of applying this guidance ~~was not material to the consolidated financial statements~~resulted in a $0.3 million tax benefit for the three and ~~six~~nine months ended ~~June~~September 30, 2017. Application of this guidance may result in fluctuations in the Company’s effective tax rate depending on how many options are exercised, how many restricted stock units vest and the volatility of the Company’s stock price.

ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. In addition, the standard requires that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. For the ~~six~~nine months ended ~~June~~September 30, 2017, the Company reflected ~~$0.5~~$2.5 million of tax withholding in financing activities. The Company has elected to apply the changes in cash flow classification on a retrospective basis resulting in an increase in operating cash flows, with a corresponding decrease in financing cash flows, of ~~$0.8~~$2.4 million for the ~~six~~nine months ended ~~June~~September 30, 2016, as compared to the amounts previously reported.

The Company elected to early adopt the guidance in ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory, on January 1, 2017. The guidance in this standard eliminates for all intra-entity sales of assets other than inventory, the exception under existing standards that permits the tax effects of intra-entity asset transfers to be deferred until the

transferred asset is sold to a third party or otherwise recovered through use. As a result, a reporting entity would recognize the tax

expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. As a result, the Company has recorded a $0.5 million cumulative effect adjustment to reduce retained earnings as of January 1, 2017.

The components of accumulated other comprehensive income (loss) are as follows (in thousands):

							Total									Total
	Net Unrealized Gain			Cumulative			Accumulated			Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive			(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)			Investments			Adjustment			Income (Loss)
Balance at January 1, 2017	$	(83	)	$	(7,490	)	$	(7,573	)	$	(83	)	$	(7,490	)	$	(7,573	)
Foreign currency translation		—			3,304			3,304			—			4,905			4,905
Unrealized gain on investments, net of tax of $15		24			—			24
Balance at June 30, 2017	$	(59	)	$	(4,186	)	$	(4,245	)
Unrealized gain on investments, net of tax of $29											47			—			47
Balance at September 30, 2017										$	(36	)	$	(2,585	)	$	(2,621	)

Total

Net Unrealized Gain

Cumulative

Accumulated

(Loss) on Marketable

Translation

Other Comprehensive

Investments

Adjustment

Income (Loss)

Balance at April 1, 2017

$
(66
)

$
(6,700
)

$
(6,766
)
Foreign currency translation

—

2,514

2,514

Unrealized gain on investments, net of tax of $4

7

—

7

Balance at June 30, 2017

$
(59
)

$
(4,186
)

$
(4,245
)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2017	$	(59	)	$	(4,186	)	$	(4,245	)
Foreign currency translation		—			1,601			1,601
Unrealized gain on investments, net of tax of $14		23			—			23
Balance at September 30, 2017	$	(36	)	$	(2,585	)	$	(2,621	)

							Total									Total
	Net Unrealized Gain			Cumulative			Accumulated			Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive			(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)			Investments			Adjustment			Income (Loss)
Balance at January 1, 2016	$	(100	)	$	(4,726	)	$	(4,826	)	$	(100	)	$	(4,726	)	$	(4,826	)
Foreign currency translation		—			52			52			—			(68	)		(68	)
Unrealized gain on investments, net of tax of $79		120			—			120
Balance at June 30, 2016	$	20		$	(4,674	)	$	(4,654	)
Unrealized gain on investments, net of tax of $46											72			—			72
Balance at September 30, 2016										$	(28	)	$	(4,794	)	$	(4,822	)

Total

Net Unrealized Gain

Cumulative

Accumulated

(Loss) on Marketable

Translation

Other Comprehensive

Investments

Adjustment

Income (Loss)

Balance at April 1, 2016

$
17

$
(3,245
)

$
(3,228
)
Foreign currency translation

—

(1,429
)

(1,429
)
Unrealized gain on investments, net of tax of $3

3

—

3

Balance at June 30, 2016

$
20

$
(4,674
)

$
(4,654
)

							Total
	Net Unrealized Gain			Cumulative			Accumulated
	(Loss) on Marketable			Translation			Other Comprehensive
	Investments			Adjustment			Income (Loss)
Balance at July 1, 2016	$	20		$	(4,674	)	$	(4,654	)
Foreign currency translation		—			(120	)		(120	)
Unrealized loss on investments, net of tax of $(33)		(48	)		—			(48	)
Balance at September 30, 2016	$	(28	)	$	(4,794	)	$	(4,822	)

The following table summarizes the Company’s marketable investments (in thousands):

	As of June 30, 2017									As of September 30, 2017
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Market		Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(8	)	$	1,792	$	1,800	$	—	$	(4	)	$	1,796
Corporate obligations		56,424		1		(88	)		56,337		52,277		7		(61	)		52,223
Total	$	58,224	$	1	$	(96	)	$	58,129	$	54,077	$	7	$	(65	)	$	54,019

Realized gains and losses on investments are included in earnings and are determined using the specific identification method. Realized gains or losses on the sale of the Company’s marketable investments were not material in the three and ~~six~~nine months ended ~~June~~September 30, 2017 and 2016.

The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of ~~June~~September 30, 2017 (in thousands).

	FY 2017		FY 2018		FY 2019		Total		FY 2017		FY 2018		FY 2019		Total
Federal agency obligations	$	—	$	1,792	$	—	$	1,792	$	—	$	1,796	$	—	$	1,796
Corporate obligations		8,504		29,913		17,920		56,337		4,000		28,559		19,664		52,223
Total	$	8,504	$	31,705	$	17,920	$	58,129	$	4,000	$	30,355	$	19,664	$	54,019

The following table shows the gross unrealized losses and market value of the Company’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	As of June 30, 2017								As of September 30, 2017
	Less Than 12 Months				12 Months or Greater				Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized		Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses		Value		Losses		Value		Losses
Federal agency obligations	$	1,792	$	8	$	—	$	—	$	-	$	—	$	1,796	$	4
Corporate obligations		43,897		69		9,219		19		25,039		30		17,640		31
Total	$	45,689	$	77	$	9,219	$	19	$	25,039	$	30	$	19,436	$	35

The Company measures certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair values of these financial assets have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities.

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis (in thousands):

	As of June 30, 2017								As of September 30, 2017
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds (1)	$	612	$	—	$	—	$	612	$	763	$	—	$	—	$	763
Federal agency obligations		—		1,792		—		1,792		—		1,796		—		1,796
Corporate obligations		—		56,337		—		56,337		—		52,223		—		52,223
Total	$	612	$	58,129	$	—	$	58,741	$	763	$	54,019	$	—	$	54,782

Level 2 assets consist of the Company’s entire portfolio of marketable investments. Level 2 assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events.

At ~~June~~September 30, 2017 and December 31, 2016, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, was ~~$2.2~~$1.5 million and $2.8 million, respectively, and is included in other assets in the Consolidated Balance Sheets.

The Company’s investments at ~~June~~September 30, 2017 are being accounted for using the equity method as the investments are limited partnerships and the Company has an ownership interest in excess of 5% and, accordingly, the Company records its share of the investee’s operating results each period. Losses from non-marketable investments were ~~$0.2~~$0.8 million and $1.0 million during the ~~six~~three and nine months ended ~~June~~September 30, ~~2017~~2017. Losses from non-marketable investments were $1.1 million and ~~were insignificant~~$1.2 million during the three and nine months ended ~~June 30, 2017, as well as the three and six months ended June~~September 30, 2016. Losses are included in ~~losses~~Losses on investments, net in the Consolidated Statements of Income. At December 31, 2016, the Company’s investments also included an investment with a book value of $0.4 million, which was accounted for using the cost method. This investment was fully liquidated during the three months ended March 31, 2017. During the three months ended ~~June~~September 30, 2017, no distributions were received from the funds. During the ~~six~~nine months ended ~~June~~September 30, 2017, distributions of $0.4 million were received from the funds. During the ~~six~~nine months ended ~~June~~September 30, 2016, no distributions were received from the funds.

In the first quarter of 2016, the Company implemented a reduction in its workforce of approximately 2% of its employees across various geographies and functions. The Company recorded $1.0 million of severance and related costs for this action during the three months ended March 31, 2016. All costs under this plan were paid during 2016.

Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the diluted weighted average number of common shares and common equivalent shares outstanding during the period. The weighted average number of common equivalent shares outstanding has been determined in accordance with the treasury-stock method. Common equivalent shares consist of common stock issuable on the exercise of outstanding options and vesting of restricted stock units when dilutive.

	Three Months Ended				Six Months Ended				Three Months Ended				Nine Months Ended
	June 30,				June 30,				September 30,				September 30,
	2017		2016		2017		2016		2017		2016		2017		2016
Basic weighted average common shares outstanding		17,715		17,863		17,973		17,812		17,747		18,062		17,897		17,896
Weighted average common equivalent shares		335		282		320		223		304		373		315		272
Diluted weighted average common shares outstanding		18,050		18,145		18,293		18,035		18,051		18,435		18,212		18,168
Share based awards excluded from diluted weighted average share calculation as effect would have been anti-dilutive		129		911		251		1,324		27		82		177		910

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

				Weighted -		Weighted -							Weighted -		Weighted -
				Average		Average							Average		Average
				Exercise		Remaining		Aggregate					Exercise		Remaining		Aggregate
	Number			Price Per		Contractual		Intrinsic		Number			Price Per		Contractual		Intrinsic
	of Shares			Share		Term (in years)		Value		of Shares			Share		Term (in years)		Value
Outstanding at December 31, 2016		1,540		$	34.35						1,540		$	34.35
Granted		—			—						—			—
Exercised		(127	)		31.70						(385	)		32.32
Forfeited		(33	)		34.32						(73	)		34.44
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
Outstanding at September 30, 2017											1,082		$	35.07		6.01	$	7,332
Exercisable at September 30, 2017											771		$	34.92		5.36	$	5,340
Vested and expected to vest at September 30, 2017											1,082		$	35.07		6.01	$	7,332

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

				Weighted-					Weighted-
				Average					Average
	Number of			Grant Date		Number of			Grant Date
	Shares			Fair Value		Shares			Fair Value
Unvested at December 31, 2016		539		$	35.50		539		$	35.50
Granted		39			38.87		241			39.58
Vested		(56	)		34.32		(205	)		35.28
Forfeited		(18	)		35.05		(51	)		36.01
Unvested at June 30, 2017		504		$	35.91
Unvested at September 30, 2017							524		$	37.42

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				Three Months Ended				Nine Months Ended
	June 30,				June 30,				September 30,				September 30,
	2017		2016		2017		2016		2017		2016		2017		2016
Cost of services and fulfillment	$	1,103	$	870	$	2,299	$	2,064	$	1,088	$	1,077	$	3,387	$	3,141
Selling and marketing		202		109		364		423		170		272		535		695
General and administrative		891		647		1,582		1,274		920		622		2,501		1,895
Total	$	2,196	$	1,626	$	4,245	$	3,761	$	2,178	$	1,971	$	6,423	$	5,731

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						Three Months Ended						Nine Months Ended
	June 30,						June 30,						September 30,						September 30,
	2017			2016			2017			2016			2017			2016			2017			2016
Average risk-free interest rate		0.88	%		0.47	%		0.74	%		0.47	%		0.96	%		0.47	%		0.81	%		0.47	%
Expected dividend yield		1.9	%		2.3	%		1.9	%		2.3	%		1.9	%		2.0	%		1.9	%		2.0	%
Expected life	0.5 Years			0.5 Years			0.5 Years			0.5 Years			0.5 Years			0.5 Years			0.5 Years			0.5 Years
Expected volatility		28	%		27	%		26	%		27	%		26	%		26	%		24	%		25	%
Weighted average fair value	$	8.49		$	7.06		$	8.21		$	7.06		$	8.50		$	7.52		$	8.32		$	7.75

In the ~~six~~nine months ended ~~June~~September 30, 2017, the Company declared and paid dividends of ~~$6.8~~$10.2 million consisting of a $0.19 per share dividend in each of the first ~~two~~three quarters of 2017. In the ~~six~~nine months ended ~~June~~September 30, 2016, the Company declared and paid dividends of ~~$6.4~~$9.7 million consisting of a $0.18 per share dividend in each of the first ~~two~~three quarters of 2016. In ~~July~~October 2017, the Company declared a dividend of $0.19 per share payable on ~~September~~December 20, 2017 to shareholders of record as of ~~September~~December 6, 2017.

As of ~~June~~September 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~~nine months ended ~~June~~September 30, 2017, the Company repurchased approximately ~~0.4~~0.1 and ~~1.0~~1.1 million shares, respectively, of common stock at an aggregate cost of approximately ~~$15.0~~$3.5 million and ~~$36.5~~$40.0 million, respectively. The Company did not repurchase shares of common stock in the ~~six~~nine months ended ~~June~~September 30, 2016. From the inception of the program through ~~June~~September 30, 2017, Forrester repurchased ~~16.0~~16.1 million shares of common stock at an aggregate cost of ~~$461.4~~$464.9 million.

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 or expense related to settlements of share-based payment awards are treated as discrete items and are recorded in the period in which they arise.

Income tax expense for the ~~six~~nine months ended ~~June~~September 30, 2017 was ~~$4.1~~$6.3 million resulting in an effective tax rate of ~~31.2%~~32.6% for the period. Income tax expense for the ~~six~~nine months ended ~~June~~September 30, 2016 was ~~$5.5~~$9.1 million resulting in an effective tax rate of ~~38.7%~~43.4% for the period. ~~Income~~The decrease in the effective tax ~~expense decreased by $1.4 million~~ rate during the ~~six~~nine months ended ~~June~~September 30, 2017 compared to the prior year period was primarily due ~~primarily~~ to the recognition of a $1.3 million benefit from the settlement of a tax audit in the first quarter of 2017 and the recognition of approximately $0.3 million of windfall tax benefits from the settlement of options and restricted stock units during the third quarter of 2017. In addition, in 2016 an additional $0.6 million of tax expense was incurred due to a valuation allowance on a capital loss generated from one of the Company’s investments. For the full year 2017, the Company anticipates that its effective tax rate will be approximately ~~36%~~35%.

The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment.

The Product segment includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes the costs of the Company’s Data, Connect and Events organizations. Revenue in this segment includes all revenue for the Company (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the majority of the Company’s project consulting services. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, certain client support expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income, ~~(expense),~~ and ~~gains (losses)~~losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

In the first quarter of 2017, the Company modified its internal reporting for the Research and Project Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expenses in the table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.

						Project										Project
	Product		Research			Consulting		Consolidated			Product		Research			Consulting		Consolidated
Three Months Ended June 30, 2017
Three Months Ended September 30, 2017
Research services revenues	$	54,575	$	—		$	—	$	54,575		$	54,235	$	—		$	—	$	54,235
Advisory services and events revenues		9,860		11,407			13,891		35,158			3,353		10,379			12,402		26,134
Total segment revenues		64,435		11,407			13,891		89,733			57,588		10,379			12,402		80,369
Segment expenses		13,797		12,414			6,589		32,800			9,764		11,953			6,443		28,160
Contribution margin (loss)		50,638		(1,007	)		7,302		56,933			47,824		(1,574	)		5,959		52,209
Selling, marketing, administrative and other expenses									(46,525	)									(45,263	)
Amortization of intangible assets									(194	)									(197	)
Reorganization costs									—										—
Other income and losses on investments									70										(626	)
Income before income taxes								$	10,284									$	6,123

					Project										Project
	Product		Research		Consulting		Consolidated			Product		Research			Consulting		Consolidated
Three Months Ended June 30, 2016
Three Months Ended September 30, 2016
Research services revenues	$	55,023	$	—	$	—	$	55,023		$	52,727	$	—		$	—	$	52,727
Advisory services and events revenues		9,157		12,537		11,104		32,798			2,333		10,330			12,037		24,700
Total segment revenues		64,180		12,537		11,104		87,821			55,060		10,330			12,037		77,427
Segment expenses		12,544		11,995		6,078		30,617			8,884		11,586			5,522		25,992
Contribution margin		51,636		542		5,026		57,204
Contribution margin (loss)											46,176		(1,256	)		6,515		51,435
Selling, marketing, administrative and other expenses								(45,511	)									(43,675	)
Amortization of intangible assets								(210	)									(208	)
Reorganization costs								(11	)									—
Other income and losses on investments								419										(856	)
Income before income taxes							$	11,891									$	6,696

						Project										Project
	Product		Research			Consulting		Consolidated			Product		Research			Consulting		Consolidated
Six Months Ended June 30, 2017
Nine Months Ended September 30, 2017
Research services revenues	$	106,318	$	—		$	—	$	106,318		$	160,553	$	—		$	—	$	160,553
Advisory services and events revenues		12,361		21,900			26,348		60,609			15,714		32,279			38,750		86,743
Total segment revenues		118,679		21,900			26,348		166,927			176,267		32,279			38,750		247,296
Segment expenses		23,024		24,557			12,443		60,024			32,788		36,510			18,886		88,184
Contribution margin (loss)		95,655		(2,657	)		13,905		106,903			143,479		(4,231	)		19,864		159,112
Selling, marketing, administrative and other expenses									(93,168	)									(138,432	)
Amortization of intangible assets									(385	)									(582	)
Reorganization costs									—										—
Other income and losses on investments									(124	)									(749	)
Income before income taxes								$	13,226									$	19,349

						Project										Project
	Product		Research			Consulting		Consolidated			Product		Research			Consulting		Consolidated
Six Months Ended June 30, 2016
Nine Months Ended September 30, 2016
Research services revenues	$	108,271	$	—		$	—	$	108,271		$	160,998	$	—		$	—	$	160,998
Advisory services and events revenues		11,858		22,914			22,179		56,951			14,191		33,244			34,216		81,651
Total segment revenues		120,129		22,914			22,179		165,222			175,189		33,244			34,216		242,649
Segment expenses		21,422		24,440			11,943		57,805			30,306		36,026			17,465		83,797
Contribution margin (loss)		98,707		(1,526	)		10,236		107,417			144,883		(2,782	)		16,751		158,852
Selling, marketing, administrative and other expenses									(91,788	)									(135,463	)
Amortization of intangible assets									(419	)									(627	)
Reorganization costs									(1,026	)									(1,026	)
Other income and losses on investments									91										(765	)
Income before income taxes								$	14,275									$	20,971

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers, which supersedes all existing revenue recognition requirements, including most industry specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The guidance also includes enhanced disclosure requirements which are intended to help financial statement users better understand the nature, amount, timing and uncertainty of revenue being recognized and the related cash flows. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients, which relates to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, noncash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements: Revenue from Contracts with Customers, which clarifies several topics including, certain types of transactions that are outside the scope of the new standard, disclosure requirements and balance sheet considerations.

The new standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has determined that it will adopt the standard utilizing the modified retrospective method.

In 2016, Forrester established a formal program and cross-functional implementation team to identify, design and implement changes to its accounting systems and policies, business processes and internal controls to support recognition and disclosures under the new standard. The Company ~~estimates~~believes that it ~~is approximately 75% complete with~~has essentially completed its ~~adoption analysis and significant completed activities to date include assessments~~assessment of ~~material, active contracts, performance obligations, standalone selling prices and transaction price allocation,~~how the new standard will affect the Company’s revenue recognition ~~timing, variable consideration~~for all of its products and services, and will complete its accounting system and business process changes by the ~~recording~~end of ~~contract assets and liabilities.~~2017.

The Company does not anticipate that the standard will have a material impact on its results of operations. The number of performance obligations in the Company’s arrangements will not be different under the new standard than under current guidance. Determining standalone selling prices and allocating contract consideration on multiple element arrangements will ~~not be different from~~follow a similar process as the Company’s current methodologies of establishing fair value / estimated selling price for our goods and services or allocating total contract consideration under the relative selling price method. Additionally, the timing of revenue recognition will remain substantially unchanged for most products. Subscription based research services revenues will continue to be recognized over time, using the new standard’s output method of time elapsed, as Forrester’s clients receive and consume the benefits of our services as we transfer control throughout the contract period. Advisory, reprint and events revenues will continue to be recognized at the point in time as control is transferred to the customer, which will generally be when the client has physical possession of the good(s) or upon completion of the service(s). The Company expects that most of its consulting contracts will continue to be recognized over time, while some contracts may be required to be recognized at a point in time upon completion of the project.

~~Under~~The following changes are anticipated under the ~~standard, the~~new standard:

Key areas still in process include the evaluation of ~~contract~~ costs to fulfill contracts and ~~disclosure requirements.~~completion and testing of new functionality of the Company’s existing software systems that is being implemented as part of this project. The adoption program and all remaining activities, including updates to the Company’s systems, processes, policies and controls, are expected to be completed by the end of 2017. In addition, report development and testing for disclosure requirements in ~~late 2017.~~

~~The new standard~~2018 will be ~~effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The two permitted transition methods under~~completed in the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effectfirst quarter of ~~applying the standard would be recognized at the date of initial application. The Company has determined that it will adopt the standard utilizing the modified retrospective method.~~

Notwithstanding the Company’s current conclusions above, certain areas of the standard, as well as implementation issues, continue to be worked through by the various standard setting bodies. The Company’s implementation team continues to monitor industry activities and standard updates and will adjust its adoption plans based on any relevant guidance issued by the standard setters and regulators.2018.

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for the Company on January 1, 2019. The adoption of this standard is expected to have a material impact on the Company’s financial position as virtually all leases will be recorded on the balance sheets as a right-of-use asset and a lease liability. The Company is currently evaluating the potential impact that this standard may have on its results of operations.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. The new standard amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies certain aspects of the statement of cash flows, including contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees, among others. The new standard will be effective for the Company on January 1, 2018. The adoption of this standard is not expected to have a material impact on ~~our~~the Company’s statements of cash flows upon adoption.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and requires that instead, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial position or results of operations.

ITEM 2. MANAGEM~~MANAGEMENT’S~~ENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “plans,” “estimates,” or similar expressions are intended to identify these forward-looking statements. Reference is made in particular to our statements about our plans for anticipated increases in, and productivity of, our sales force and headcount, future growth rates, future tax rates, future operating cash flows, future dividends, future share repurchases and the adequacy of our cash, marketable investments and cash flows to satisfy our working capital and capital expenditures. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include, among others, our ability to retain and enrich memberships for our research, data and leadership board products and services, our ability to fulfill existing or generate new project consulting engagements, the impact of our evolving customer engagement model, technology spending, the risks and challenges inherent in international business activities, our ability to offer new products and services, our dependence on key personnel, our ability to realize anticipated benefits from internal reorganizations, the ability to attract and retain qualified professional staff, our ability to respond to business and economic conditions and market trends, the possibility of network disruptions and security breaches, competition and industry consolidation, our ability to enforce and protect our intellectual property rights, compliance with privacy laws, possible variations in our quarterly operating results, taxation risks, concentration of our stock ownership and any weakness identified in our system of internal controls. These risks are described more completely in our Annual Report on Form 10-K for the year ended December 31, 2016. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

We derive revenues from memberships to, and sales of, our Research, Connect and Data products and services, performing advisory services and consulting projects, and hosting events. We offer contracts for our Research, Connect and Data products that are typically renewable annually and payable in advance. Membership revenues are recognized as revenue ratably over the term of the contract. Accordingly, a substantial portion of our billings are initially recorded as deferred revenue. Clients purchase advisory services independently and/or to supplement their memberships to our subscription-based products. Billings attributable to advisory services and consulting projects are initially recorded as deferred revenue. Advisory service revenues, such as workshops, speeches and advisory days, are recognized when the customer receives the agreed upon deliverable. Consulting project revenues, which generally are short-term in nature and based upon fixed-fee agreements, are recognized as the services are provided. Event billings are also initially recorded as deferred revenue and are recognized as revenue upon completion of each event.

Our primary operating expenses consist of cost of services and fulfillment, selling and marketing expenses and general and administrative expenses. Cost of services and fulfillment represents the costs associated with the production and delivery of our products and services, including salaries, bonuses, employee benefits and stock-based compensation expense for all personnel that produce and deliver our products and services, including all associated editorial, travel, and support services. Selling and marketing expenses include salaries, sales commissions, bonuses, employee benefits, stock-based compensation expense, travel expenses, promotional costs and other costs incurred in marketing and selling our products and services. General and administrative expenses include the costs of the technology, operations, finance, and human resources groups and our other administrative functions, including salaries, bonuses, employee benefits, and stock-based compensation expense. Overhead costs such as facilities and annual fees for cloud-based information technology systems are allocated to these categories according to the number of employees in each group.

Deferred revenue, agreement value, client retention, dollar retention, enrichment and number of clients are metrics that we believe are important to understanding our business. We believe that the amount of deferred revenue, along with the agreement value of contracts to purchase research and advisory services, provide a significant measure of our business activity. We define these metrics as follows:

Client retention, dollar retention, and enrichment are not necessarily indicative of the rate of future retention of our revenue base. A summary of our key metrics is as follows (dollars in millions):

	As of						Absolute			Percentage			As of						Absolute			Percentage
	June 30,						Increase			Increase			September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)			2017			2016			(Decrease)			(Decrease)
Deferred revenue	$	145.4		$	138.6		$	6.8			5	%	$	132.9		$	126.2		$	6.7			5	%
Agreement value	$	236.7		$	241.8		$	(5.1	)		(2	%)	$	237.8		$	241.1		$	(3.3	)		(1	%)
Client retention		75	%		76	%		(1	)		(1	%)		76	%		76	%		—			—
Dollar retention		87	%		88	%		(1	)		(1	%)		88	%		88	%		—			—
Enrichment		94	%		96	%		(2	)		(2	%)		94	%		95	%		(1	)		(1	%)
Number of clients		2,417			2,481			(64	)		(3	%)		2,393			2,482			(89	)		(4	%)

Deferred revenue at ~~June~~September 30, 2017 increased 5% compared to the prior year. The increase in deferred revenue is a result of ~~increased~~ contract billings in excess of revenue recognized due to an increase in contract bookings. Agreement value decreased 2%1% at ~~June~~September 30, 2017 compared to the prior year and after adjusting for the effect of foreign currency fluctuations, ~~declined 1%~~remained essentially flat compared to the prior year. Client retention rate and dollar retention rate both increased 1% compared to the prior quarter ~~but declined 1%~~and were essentially flat compared to the prior year period. ~~Dollar retention rate and enrichment~~Enrichment rate, although essentially consistent with the prior quarter, declined 1% ~~and 2%, respectively,~~ compared to the prior year period.

Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our policies and estimates, including but not limited to, those related to our revenue recognition, ~~stock-based compensation,~~ non-marketable investments, goodwill and other intangible assets, and income taxes. Management bases its estimates on historical experience, data available at the time the estimates are made and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Our other critical accounting policies and estimates are described in our Annual Report on Form 10-K for the year ended December 31, 2016.

The following table sets forth our statement of income as a percentage of total revenues for the periods indicated:

	Three Months Ended						Six Months Ended						Three Months Ended						Nine Months Ended
	June 30,						June 30,						September 30,						September 30,
	2017			2016			2017			2016			2017			2016			2017			2016
Revenues:
Research services		60.8	%		62.7	%		63.7	%		65.5	%		67.5	%		68.1	%		64.9	%		66.4	%
Advisory services and events		39.2			37.3			36.3			34.5			32.5			31.9			35.1			33.6
Total revenues		100.0			100.0			100.0			100.0			100.0			100.0			100.0			100.0
Operating expenses:
Cost of services and fulfillment		41.1			39.2			40.9			39.6			40.4			38.6			40.8			39.3
Selling and marketing		34.0			33.4			36.6			36.2			36.4			35.8			36.5			36.1
General and administrative		11.6			11.7			12.4			12.3			12.6			13.0			12.4			12.5
Depreciation		1.7			2.4			1.9			2.4			2.0			2.5			2.0			2.5
Amortization of intangible assets		0.2			0.2			0.2			0.3			0.2			0.3			0.2			0.2
Reorganization costs		—			—			—			0.6			—			—			—			0.4
Income from operations		11.4			13.1			8.0			8.6			8.4			9.8			8.1			9.0
Other income, net		0.1			0.4			—			—			0.2			0.3			0.1			0.1
Losses on investments, net		—			—			(0.1	)		—			(1.0	)		(1.5	)		(0.4	)		(0.5	)
Income before income taxes		11.5			13.5			7.9			8.6			7.6			8.6			7.8			8.6
Income tax provision		4.7			5.0			2.5			3.3			2.7			4.6			2.5			3.7
Net income		6.8	%		8.5	%		5.4	%		5.3	%		4.9	%		4.0	%		5.3	%		4.9	%

	Three Months Ended						Absolute			Percentage			Three Months Ended						Absolute		Percentage
	June 30,						Increase			Increase			September 30,						Increase		Increase
	2017			2016			(Decrease)			(Decrease)			2017			2016			(Decrease)		(Decrease)
	(dollars in millions)												(dollars in millions)
Revenues	$	89.7		$	87.8		$	1.9			2	%	$	80.4		$	77.4		$	3.0		4	%
Revenues from research services	$	54.6		$	55.0		$	(0.4	)		(1	%)	$	54.2		$	52.7		$	1.5		3	%
Revenues from advisory services and events	$	35.2		$	32.8		$	2.4			7	%	$	26.1		$	24.7		$	1.4		6	%
Revenues attributable to customers outside of the U.S.	$	19.6		$	20.1		$	(0.5	)		(2	%)	$	19.2		$	17.4		$	1.8		10	%
Percentage of revenue attributable to customers outside of the U.S.		22	%		23	%		(1	)		(4	%)		24	%		22	%		2		9	%
Number of events		6			7			(1	)		(14	%)		3			3			—		—

	Six Months Ended						Absolute			Percentage			Nine Months Ended						Absolute			Percentage
	June 30,						Increase			Increase			September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)			2017			2016			(Decrease)			(Decrease)
	(dollars in millions)												(dollars in millions)
Revenues	$	166.9		$	165.2		$	1.7			1	%	$	247.3		$	242.6		$	4.7			2	%
Revenues from research services	$	106.3		$	108.3		$	(2.0	)		(2	%)	$	160.6		$	161.0		$	(0.4	)		—
Revenues from advisory services and events	$	60.6		$	57.0		$	3.6			6	%	$	86.7		$	81.7		$	5.0			6	%
Revenues attributable to customers outside of the U.S.	$	36.5		$	38.0		$	(1.5	)		(4	%)	$	55.7		$	55.4		$	0.3			1	%
Percentage of revenue attributable to customers outside of the U.S.		22	%		23	%		(1	)		(4	%)		23	%		23	%		—			—
Number of events		6			7			(1	)		(14	%)		9			10			(1	)		(10	%)

Total revenues increased 4% and 2% during the three and nine months ended September 30, 2017 respectively, compared to the prior year periods. After adjusting for the effect of foreign currency fluctuations, the revenue increase was 3% during the three months ended September 30, 2017 and remained at 2% for the nine months ended September 30, 2017. Revenues from customers outside the U.S. increased 10% and 1% during the three and ~~six~~nine months ended ~~June~~September 30, 2017, respectively, compared to the prior year periods and increased 3%8% and 2%, respectively, after adjusting for the effect of foreign currency fluctuations. Revenues from customers outside the U.S. decreased 2% and 4% during the three and six months ended June 30, 2017, respectively, compared to the prior year periods and increased 1% and decreased 1%, respectively, after adjusting for the effects of foreign currency fluctuations. Revenues from customers outside of the U.S. represented ~~22%~~24% of total revenues for the three months ended September 30, 2017 and ~~decreased 1%~~after adjusting for

the effect of foreign currency fluctuations, represented 23% of total revenues compared to 22% in the prior year period. The increase in the percentage of revenues attributable to customers outside of the U.S. during the three months ended September 30, 2017 was principally due to an increase in revenues in Canada and the Asia Pacific region. Revenues from customers outside of the U.S. represented 23% of total revenues during the nine months ended September 30, 2017 and remained essentially flat compared to the prior year period, reflecting growth in revenues in the Asia Pacific region that was offset by a decline in revenues in Europe. There was no material effect of foreign currency fluctuations on revenues from customers outside of the U.S. as a percent of total revenues during ~~both~~ the ~~three and six~~nine months ended ~~June~~September 30, ~~2017, compared to the prior year periods. The decline in revenue attributable to~~

~~customers outside of the U.S. during the six months ended June 30, 2017 was principally due to a decline in revenue in Europe and Canada that was partially offset by growth in the Asia Pacific region.~~2017.

Research services revenues are recognized as revenue primarily on a ratable basis over the term of the contracts, which are generally twelve-month periods. Research services revenues ~~decreased 1% and 2%~~increased 3% during the three ~~and six~~ months ended ~~June~~September 30, 2017 ~~respectively,~~and was essentially flat during the nine months ended September 30, 2017, compared to the prior year ~~periods~~periods. Currency fluctuations had the effect of increasing revenue growth by 1% in the three months ended September 30, 2017 and ~~were essentially flat~~had an insignificant effect in the nine months ended September 30, 2017. The increase in revenues for the three months ended ~~June~~September 30, 2017 ~~and decreased 1% for the six months ended June 30, 2017 after adjusting for the effect of foreign currency fluctuations. The decrease~~ was primarily driven by an increase in revenue for our Reprints and Connect products. During the nine months ended September 30, 2017, a decline in ~~demand~~revenue for our Data products and a slight decline in revenue for our Research products was offset by an increase in revenue for our Reprints and Connect products.

Revenues from advisory services and events increased 7~~% and~~ 6% during both the three and ~~six~~nine months ended ~~June~~September 30, 2017 ~~respectively,~~ compared to the prior year periods and increased 8%5% and 7%6%, respectively, after adjusting for the effect of foreign currency fluctuations. ~~Both periods during~~The increase in revenues for the three months ended September 30, 2017 ~~included strong growth~~was principally due to increases in ~~consulting~~both advisory and events revenues, that was partially offset by a slight decline in ~~advisory~~consulting revenues. The increase in revenues for the nine months ended September 30, 2017 was principally due to growth in consulting and events revenues. Events revenues increased 6%158% and 5%14% during the three and ~~six~~nine months ended ~~June~~September 30, 2017, ~~respectively.~~respectively, compared to the prior year periods. The increase in events revenues during the three months ended September 30, 2017 was primarily due to revenue from a new event held in the U.S. during the current year period that exceeded the decline in revenue resulting from the discontinuation of a small event in the Asia Pacific region. The increase in events revenues during the nine months ended September 30, 2017 was due to an increase in sponsorship revenues ~~for the events~~ that offset having held one less event in the Asia Pacific region in the current year compared to the prior year.

Please refer to the “Segments Results” section below for a discussion of revenues and expenses by segment.

	Three Months Ended						Absolute		Percentage			Three Months Ended						Absolute		Percentage
	June 30,						Increase		Increase			September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)			2017			2016			(Decrease)		(Decrease)
Cost of services and fulfillment (dollars in millions)	$	36.9		$	34.4		$	2.5		7	%	$	32.5		$	29.9		$	2.6		9	%
Cost of services and fulfillment as a percentage of total revenues		41.1	%		39.2	%		1.9		5	%		40.4	%		38.6	%		1.8		5	%
Service and fulfillment employees (at end of period)		605			582			23		4	%		593			571			22		4	%

	Six Months Ended						Absolute		Percentage			Nine Months Ended						Absolute		Percentage
	June 30,						Increase		Increase			September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)			2017			2016			(Decrease)		(Decrease)
Cost of services and fulfillment (dollars in millions)	$	68.3		$	65.5		$	2.8		4	%	$	100.8		$	95.4		$	5.4		6	%
Cost of services and fulfillment as a percentage of total revenues		40.9	%		39.6	%		1.3		3	%
Cost of services and fulfillment as a percentage of total Revenues													40.8	%		39.3	%		1.5		4	%

Cost of services and fulfillment expenses increased 7%9% during the three months ended ~~June~~September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 9%8%. The increase in dollars was primarily due to (1) a ~~$1.1~~$1.4 million increase in compensation and benefit costs, resulting principally from an increase in employees compared to the prior year period and annual merit increases, (2) a ~~$0.7~~$0.3 million increase in event expenses and (3) a ~~$0.3~~$0.5 million increase in professional services costs.

Cost of services and fulfillment expenses increased 4%6% during the ~~six~~nine months ended ~~June~~September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 6%7%. The increase in dollars was primarily due to (1) a ~~$1.5~~$2.8 million increase in compensation and benefit costs, resulting principally from an increase in employees compared to the prior year period and annual merit increases, (2) a ~~$0.7~~$1.0 million increase in event expenses and (3) a ~~$0.2~~$0.7 million increase in professional services costs.

	Three Months Ended						Absolute		Percentage			Three Months Ended						Absolute		Percentage
	June 30,						Increase		Increase			September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)			2017			2016			(Decrease)		(Decrease)
Selling and marketing expenses (dollars in millions)	$	30.5		$	29.3		$	1.2		4	%	$	29.2		$	27.8		$	1.4		5	%
Selling and marketing expenses as a percentage of total revenues		34.0	%		33.4	%		0.6		2	%		36.4	%		35.8	%		0.6		2	%
Selling and marketing employees (at end of period)		584			575			9		2	%		589			572			17		3	%

	Six Months Ended						Absolute		Percentage			Nine Months Ended						Absolute		Percentage
	June 30,						Increase		Increase			September 30,						Increase		Increase
	2017			2016			(Decrease)		(Decrease)			2017			2016			(Decrease)		(Decrease)
Selling and marketing expenses (dollars in millions)	$	61.1		$	59.7		$	1.4		2	%	$	90.4		$	87.5		$	2.9		3	%
Selling and marketing expenses as a percentage of total revenues		36.6	%		36.2	%		0.4		1	%		36.5	%		36.1	%		0.4		1	%

Selling and marketing expenses increased 4%5% during the three months ended ~~June~~September 30, 2017 compared to the prior year ~~period and after adjusting for the effect of foreign currency fluctuations, increased 5%.~~period. The increase in dollars was primarily due to a ~~$0.9~~$1.5 million increase in compensation and benefit costs, resulting from an increase in sales employees, annual merit increases, and an increase in incentive bonuses ~~and an increase in severance costs~~ compared to the prior year period. There was no material effect of foreign currency fluctuations on selling and marketing expenses during the three months ended September 30, 2017.

Selling and marketing expenses increased 2%3% during the ~~six~~nine months ended ~~June~~September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 4%. The increase in dollars was primarily due to a ~~$1.9~~$3.4 million increase in compensation and benefit costs, resulting from an increase in sales employees, annual merit increases, an increase in incentive bonuses and an increase in severance costs compared to the prior year period. This increase was partially offset by a $0.8 million decrease in travel and entertainment expenses primarily resulting from a reduction in expense for our annual sales conference.

Subject to the business environment, we expect our sales headcount to increase by 4%3% to 7%6% in 2017 as compared to the year ended December 31, 2016.

	Three Months Ended						Absolute			Percentage			Three Months Ended						Absolute			Percentage
	June 30,						Increase			Increase			September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)			2017			2016			(Decrease)			(Decrease)
General and administrative expenses (dollars in millions)	$	10.4		$	10.3		$	0.1			1	%	$	10.1		$	10.1		$	—			—
General and administrative expenses as a percentage of total revenues		11.6	%		11.7	%		(0.1	)		(1	%)		12.6	%		13.0	%		(0.4	)		(3	%)
General and administrative employees (at end of period)		192			179			13			7	%		192			189			3			2	%

	Six Months Ended						Absolute		Percentage			Nine Months Ended						Absolute			Percentage
	June 30,						Increase		Increase			September 30,						Increase			Increase
	2017			2016			(Decrease)		(Decrease)			2017			2016			(Decrease)			(Decrease)
General and administrative expenses (dollars in millions)	$	20.6		$	20.3		$	0.3		2	%	$	30.7		$	30.4		$	0.3			1	%
General and administrative expenses as a percentage of total revenues		12.4	%		12.3	%		0.1		1	%		12.4	%		12.5	%		(0.1	)		(1	%)

General and administrative ~~increased 1%~~expenses remained essentially flat during the three months ended ~~June~~September 30, 2017 compared to the prior year period primarily due to a $0.5 million decrease in professional services expense that was offset by (1) a $0.3 million increase in stock compensation expense and (2) a $0.1 million increase in compensation and benefits costs. There was no material effect of foreign currency fluctuations on general and administrative expenses during the three months ended September 30, 2017.

General and administrative expenses increased 1% during the nine months ended September 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 2%. The increase in dollars was primarily due to (1) a $0.4 million increase in compensation and benefit costs resulting from an increase in headcount and annual merit increases compared to the prior year period and (2) a $0.2 million increase in stock compensation costs. These increases were partially offset by a $0.6 million decrease in professional services expense.

General and administrative expenses increased 2% during the six months ended June 30, 2017 compared to the prior year period and after adjusting for the effect of foreign currency fluctuations, increased 3%. The increase in dollars was primarily due to (1) a $0.7$0.8 million increase in compensation and benefit costs resulting from an increase in headcount and annual merit increases compared to the prior year period, (2) a ~~$0.3~~$0.6 million increase in stock compensation costs and (3) a $0.2 million increase in hiring and relocation expense. These increases were partially offset by a ~~$1.0~~$1.4 million decrease in professional services ~~expense primarily due to a decrease in legal and accounting services fees.~~expense.

Depreciation expense decreased by ~~$0.6~~$0.3 million and ~~$0.9~~$1.2 million during the three and ~~six~~nine months ended ~~June~~September 30, 2017, respectively, compared to the prior year ~~period~~periods primarily due to certain equipment and software assets becoming fully depreciated.

Amortization expense remained essentially consistent during the three and ~~six~~nine months ended ~~June~~September 30, 2017 compared to the prior year periods.

During the ~~six~~nine months ended ~~June~~September 30, 2016, we incurred $1.0 million of severance and related benefits costs for a reduction in our workforce of approximately 2% of employees across various geographies and functions. All costs under this plan were paid during 2016.

Other income, net primarily consists of interest income on our investments as well as gains and losses on foreign currency. The decrease in other income, net of $0.1 million during the three months ended ~~June~~September 30, 2017 compared to the prior year period is primarily due to an increase in foreign currency losses. The decrease in other income, net of $0.1 million during the nine months ended September 30, 2017 compared to the prior year period is primarily due to an increase in foreign currency losses of ~~approximately $0.1 million incurred during the current year period versus foreign currency gains of~~ $0.3 million ~~incurred during the prior year period.~~

~~Other~~that was partially offset by an increase in interest income ~~net was essentially consistent during the six months ended June 30, 2017 and 2016.~~of $0.2 million.

Losses on investments, net primarily represents our share of equity method investment gains and losses from our technology-related investment funds. ~~Losses on investments, net was essentially consistent during the three months ended June 30, 2017 and 2016.~~

The ~~increase~~decrease in investment losses during the ~~six~~three and nine months ended ~~June~~September 30, 2017 ~~was~~is primarily due to ~~an increase~~a decrease in investment losses incurred by the underlying funds as compared to the prior year ~~period.~~periods.

	Three Months Ended						Absolute			Percentage			Three Months Ended						Absolute			Percentage
	June 30,						Increase			Increase			September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)			2017			2016			(Decrease)			(Decrease)
Provision for income taxes (dollars in millions)	$	4.2		$	4.4		$	(0.2	)		(5	%)	$	2.2		$	3.6		$	(1.4	)		(39	%)
Effective tax rate		41.0	%		37.3	%		3.8			10	%		35.4	%		53.5	%		(18.1	)		(34	%)

	Six Months Ended						Absolute			Percentage			Nine Months Ended						Absolute			Percentage
	June 30,						Increase			Increase			September 30,						Increase			Increase
	2017			2016			(Decrease)			(Decrease)			2017			2016			(Decrease)			(Decrease)
Provision for income taxes (dollars in millions)	$	4.1		$	5.5		$	(1.4	)		(25	%)	$	6.3		$	9.1		$	(2.8	)		(31	%)
Effective tax rate		31.2	%		38.7	%		(7.5	)		(19	%)		32.6	%		43.4	%		(10.8	)		(25	%)

Income tax expense ~~decreased by $1.4~~for the nine months ended September 30, 2017 was $6.3 million resulting in an effective tax rate of 32.6% for the period. Income tax expense for the nine months ended September 30, 2016 was $9.1 million resulting in an effective tax rate of 43.4% for the period. The decrease in the effective tax rate during the ~~six~~nine months ended ~~June~~September 30, 2017 compared to the prior year period was due primarily to the recognition of a $1.3 million benefit onfrom the settlement of a tax audit in the first quarter of 2017 and the recognition of approximately $0.3 million of windfall tax benefits from the settlement of options and restricted stock units during the third quarter of 2017. In addition, in 2016 an additional $0.6 million of tax expense was incurred due to a valuation allowance on a capital loss generated from one of our investments. For the full year 2017, we anticipate that our effective tax rate will be approximately ~~36%~~35%.

The Research segment includes the costs of our research personnel who are responsible for writing the research and performing the webinars and inquiries for our Research and Connect products. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of our project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment.

The Product segment includes the costs of the product management organization that is responsible for pricing, packaging and the launch of new products. In addition, this segment includes the costs of our Data, Connect and Events organizations. Revenue in this segment includes all of our revenue (including Research and Connect) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the majority of our project consulting services. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

~~The Company evaluates~~We evaluate reportable segment performance and ~~allocates~~allocate resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, certain client support expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income, ~~(expense),~~ and ~~gains~~

~~(losses)~~losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

In the first quarter of 2017, we modified our internal reporting for the Research and Project Consulting segments to reflect the transfer of revenue and direct costs related to a small consulting team in Asia Pacific from Research to Project Consulting, and to remove from both Research and Project Consulting certain client support activities that are now included within selling, marketing, administrative and other expenses in the table below. Accordingly, the 2016 amounts have been reclassified to conform to the current presentation.

							Project												Project
	Product			Research			Consulting			Consolidated			Product			Research			Consulting			Consolidated
Three Months Ended June 30, 2017
Three Months Ended September 30, 2017
Research services revenues	$	54,575		$	—		$	—		$	54,575		$	54,235		$	—		$	—		$	54,235
Advisory services and events revenues		9,860			11,407			13,891			35,158			3,353			10,379			12,402			26,134
Total segment revenues		64,435			11,407			13,891			89,733			57,588			10,379			12,402			80,369
Segment expenses		13,797			12,414			6,589			32,800			9,764			11,953			6,443			28,160
Contribution margin (loss)		50,638			(1,007	)		7,302			56,933			47,824			(1,574	)		5,959			52,209
Year over year revenue change		—			(9	%)		25	%		2	%		5	%		—			3	%		4	%
Year over year expense change		10	%		3	%		8	%		7	%		10	%		3	%		17	%		8	%

					Project									Project
	Product		Research		Consulting		Consolidated		Product		Research			Consulting		Consolidated
Three Months Ended June 30, 2016
Three Months Ended September 30, 2016
Research services revenues	$	55,023	$	—	$	—	$	55,023	$	52,727	$	—		$	—	$	52,727
Advisory services and events revenues		9,157		12,537		11,104		32,798		2,333		10,330			12,037		24,700
Total segment revenues		64,180		12,537		11,104		87,821		55,060		10,330			12,037		77,427
Segment expenses		12,544		11,995		6,078		30,617		8,884		11,586			5,522		25,992
Contribution margin (loss)		51,636		542		5,026		57,204		46,176		(1,256	)		6,515		51,435

							Project												Project
	Product			Research			Consulting			Consolidated			Product			Research			Consulting			Consolidated
Six Months Ended June 30, 2017
Nine Months Ended September 30, 2017
Research services revenues	$	106,318		$	—		$	—		$	106,318		$	160,553		$	—		$	—		$	160,553
Advisory services and events revenues		12,361			21,900			26,348			60,609			15,714			32,279			38,750			86,743
Total segment revenues		118,679			21,900			26,348			166,927			176,267			32,279			38,750			247,296
Segment expenses		23,024			24,557			12,443			60,024			32,788			36,510			18,886			88,184
Contribution margin (loss)		95,655			(2,657	)		13,905			106,903			143,479			(4,231	)		19,864			159,112
Year over year revenue change		(1	%)		(4	%)		19	%		1	%		1	%		(3	%)		13	%		2	%
Year over year expense change		7	%		—			4	%		4	%		8	%		1	%		8	%		5	%

						Project									Project
	Product		Research			Consulting		Consolidated		Product		Research			Consulting		Consolidated
Six Months Ended June 30, 2016
Nine Months Ended September 30, 2016
Research services revenues	$	108,271	$	—		$	—	$	108,271	$	160,998	$	—		$	—	$	160,998
Advisory services and events revenues		11,858		22,914			22,179		56,951		14,191		33,244			34,216		81,651
Total segment revenues		120,129		22,914			22,179		165,222		175,189		33,244			34,216		242,649
Segment expenses		21,422		24,440			11,943		57,805		30,306		36,026			17,465		83,797
Contribution margin (loss)		98,707		(1,526	)		10,236		107,417		144,883		(2,782	)		16,751		158,852

Product segment revenues ~~were essentially flat~~increased 5% and ~~decreased~~ 1% during the three and ~~six~~nine months ended ~~June~~September 30, 2017, respectively, compared to the prior year periods. Research services revenues ~~decreased~~increased 13% ~~and 2%~~ during the three ~~and six~~ months ended ~~June~~September 30, 2017 ~~respectively,~~and remained essentially flat during the nine months ended September 30, 2017 compared to the prior year ~~periods,~~periods. The increase in research services revenues for the three months ended September 30, 2017 was principally driven by an increase in revenues for our Reprints and Connect products. During the nine months ended September 30, 2017 a decline in revenues for our Data products and a slight decline in revenues for our Research products were offset by an increase in revenues for our Reprints and Connect products. Advisory services and events revenues, which is comprised of data consulting and events revenues in this segment, increased 8%44% and 4%11% during the three and ~~six~~nine months ended ~~June~~September 30, 2017, respectively, compared to the prior year periods. The increase in advisory services and events revenues during the three months ended ~~June~~September 30, 2017 was primarily due to a ~~$0.3~~$0.4 million increase in data consulting revenues and a ~~$0.4~~$0.7 million increase in Events revenues. The increase in Events revenues was primarily due to revenue from a new event held in the U.S. during the current year period that exceeded the decline in revenue resulting from the discontinuation of a small event in the Asia Pacific region. The increase in advisory services and events revenues during the nine months ended September 30, 2017 was primarily due to a $0.8 million increase in data consulting revenues and a $1.0 million increase in Events revenues. The increase in Events revenues was due to an increase in sponsorship revenues that offset having held one less event in the Asia Pacific region in the current year compared to the prior year. The increase in advisory services and events revenues during the six months ended June 30, 2017 was primarily due to a $0.4 million increase in Events revenues due to an increase in sponsorship revenues. Product segment expenses increased 10% and 7%8% during the three and ~~six~~nine months ended ~~June~~September 30, 2017, respectively, compared to the prior year periods

primarily due to an increase in compensation and benefit costs due to an increase in employees and an increase in events expenses driven by ~~high~~increased attendance at the events.

Research segment revenues ~~decreased 9% and 4%~~remained essentially flat during the three ~~and six~~ months ended ~~June~~September 30, 2017 ~~respectively,~~and declined 3% during the nine months ended September 30, 2017, compared to the prior year ~~periods, reflecting~~periods. During the three months ended September 30, 2017 an increase in advisory revenues was essentially offset by a decrease in ~~both~~consulting revenues. The decline in revenues during the nine months ended September 30, 2017 was principally due to a decrease in consulting revenues that was partially offset by a slight increase in advisory ~~and consulting~~ revenues. Research segment expenses increased 3% and 1% during the three and nine months ended ~~June~~September 30, 2017, ~~and were essentially flat during the six months ended June 30, 2017~~respectively, compared to the prior year periods. The increase in expenses during the three and nine months ended ~~June~~September 30, 2017 was primarily due to ~~a $0.4 million~~an increase in compensation and benefit ~~costs.~~costs of $0.5 million and $0.8 million, respectively, compared to the prior year periods.

Project Consulting segment revenues increased ~~25%~~3% and ~~19%~~13% during the three and ~~six~~nine months ended ~~June~~September 30, 2017, respectively, compared to the prior year periods due primarily to growth in our content marketing group, ~~as well as slower growth~~that was partially offset by a decline in revenue from our strategic consulting ~~group, both of which benefitted from delivery of projects in our backlog.~~group. We expect revenue growth rates to ~~moderate to~~be at a single digit level for the ~~second half~~fourth quarter of the year. Project Consulting expenses increased 8%17% and 4%8% during the three and ~~six~~nine months ended ~~June~~September 30, 2017, respectively, compared to the prior year periods. The increase in expenses during the three months and ~~six~~nine months ended ~~June~~September 30, 2017 was primarily due to ~~a $0.4 million~~an increase in compensation and benefit ~~costs.~~costs of $0.5 million and $1.0 million, respectively, compared to the prior year periods.

We have historically financed our operations primarily through funds generated from operations. Memberships for research services, which constituted approximately ~~64%~~65% of our revenues during the ~~six~~nine months ended ~~June~~September 30, 2017, are generally renewable annually and are typically payable in advance. We generated cash from operating activities of ~~$26.9~~$36.9 million and ~~$31.5~~$38.3 million during the ~~six~~nine months ended ~~June~~September 30, 2017 and 2016, respectively. The ~~$4.6~~$1.4 million decrease in cash provided from operations for the ~~six~~nine months ended ~~June~~September 30, 2017 was primarily attributable to a ~~$5.5~~$1.7 million decrease in cash generated from working ~~capital which was partially offset by a $1.0 million increase in net income and the effect of non-cash items.~~capital. The decrease in cash from working capital was primarily due to ~~a decrease in cash generated by accounts receivable and deferred revenue due to a decrease in cash collections and an increase~~increases in cash used for income taxes and cash used for accounts ~~payable.~~payable that were partially offset by a decrease in the use of cash for accrued salary expense resulting from a change in the timing of payroll payments. We expect cash from operating activities for the full year 2017 to be in the range of $37.0 to $41.0 million.

During the ~~six~~nine months ended ~~June~~September 30, 2017 we ~~used $0.1~~generated $1.4 million of cash from investing activities, consisting primarily of ~~$3.2 million of purchases of property and equipment partially offset by $2.9~~$7.0 million in net proceeds from sales and maturities of marketable ~~investments.~~investments that was partially offset by $5.8 million of purchases of property and equipment. Property and equipment purchases during 2017 consisted primarily of computer equipment, software and ~~software.~~leasehold improvements for our new office location in Nashville. During the ~~six~~nine months ended ~~June~~September 30, 2016, we used ~~$12.2~~$18.9 million of cash from investing activities, consisting primarily of ~~$9.9~~$15.5 million in net purchases of marketable investments and ~~$2.3~~$3.3 million of purchases of property and equipment. Property and equipment purchases during 2016 consisted primarily of computer equipment and software.

We used ~~$38.9~~$38.8 million of cash from financing activities during the ~~six~~nine months ended ~~June~~September 30, 2017 primarily due to ~~$36.5~~the use of $40.0 million for purchases of our common stock and $10.2 million for the payment of dividends, ~~totaling $6.8 million,~~ at $0.19 per share in each of the first ~~two~~three quarters of 2017 as well as $2.5 million in taxes paid related to net share settlements of restricted stock units, which ~~was~~were partially offset by ~~$4.9~~$13.9 million of proceeds from the exercise of stock options and our employee stock purchase plan. We used ~~$3.0~~$1.8 million of cash from financing activities during the ~~six~~nine months ended ~~June~~September 30, 2016 primarily for the payment of dividends totaling ~~$6.4~~$9.7 million, at $0.18 per share in each of the first ~~two~~three quarters of 2016, as well as $2.1 million in taxes paid related to net share settlements of restricted stock units, which was partially offset by ~~$4.1~~$10.0 million of proceeds from the exercise of stock options and our employee stock purchase plan.

As of ~~June~~September 30, 2017 our remaining stock repurchase authorization was approximately ~~$23.6~~$20.1 million. We plan to repurchase our common stock as market conditions warrant.

As of ~~June~~September 30, 2017, we had cash and cash equivalents of ~~$67.1~~$80.0 million and marketable investments of ~~$58.1~~$54.0 million. These balances include ~~$54.4~~$61.6 million held outside of the U.S. If these funds outside of the U.S. are needed for operations in the U.S., we would be required to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate these funds for our U.S. operations. We do not currently have a line of credit and do not presently anticipate the need to access a line of credit in the foreseeable future except in the case of a significant acquisition. We believe that our current cash balance, marketable investments, and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for the next twelve months.

There have been no material changes to the contractual obligations table as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016.

See Note 1 and Note 10 of the Notes to Consolidated Financial Statements for a full description of recent accounting pronouncements including the expected dates of adoption and effects on results of operations and financial condition.

There have been no material changes in our assessment of our sensitivity to market risk since our presentation set forth in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended December 31, 2016.

We maintain “disclosure controls and procedures,” as such term is defined under Securities Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of ~~June~~September 30, 2017. Based upon their evaluation and subject to the foregoing, the principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance as of that date.

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended ~~June~~September 30, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

In addition to the other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016, which could materially affect our business, financial condition or future results. The risk factors described in our Annual Report on Form 10-K remain applicable to our business. The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Through ~~June~~September 30, 2017, our Board of Directors authorized an aggregate $485.0 million to purchase common stock under our stock repurchase program. During the quarter ended ~~June~~September 30, 2017, we purchased the following shares of our common stock under the stock repurchase program:

Maximum Dollar

Value that May

Yet be Purchased

Total Number of

Average Price

Under the Stock

Period

Shares Purchased (1)

Paid per Share

Repurchase Program

(In thousands)

April 1 - April 30

44,196

$
39.10

May 1 - May 31

281,700

$
40.01

June 1 - June 30

50,424

$
39.21

376,320

$
23,600

					Maximum Dollar
					Value that May
					Yet be Purchased
	Total Number of		Average Price		Under the Stock
Period	Shares Purchased (1)		Paid per Share		Repurchase Program
					(In thousands)
July 1 - July 30		32,065	$	39.69
August 1 - August 31		26,468	$	39.82
September 1 - September 30		30,359	$	40.01
		88,892			$	20,100

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DELAWARE		04-2797789
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

60 Acorn Park Drive CAMBRIDGE, MASSACHUSETTS		02140
(Address of principal executive offices)		(Zip Code)

Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

		PAGE
PART I. FINANCIAL INFORMATION		34
ITEM 1. Financial Statements (Unaudited)		34
Consolidated Balance Sheets as of ~~June~~September 30, 2017 and December 31, ~~2016~~		3
~~Consolidated Statements of Income for the Three and Six Months Ended June 30, 2017 and~~ 2016		4
Consolidated Statements of ~~Comprehensive~~ Income for the Three and ~~Six~~Nine Months Ended ~~June~~September 30, 2017 and 2016		5
Consolidated Statements of ~~Cash Flows~~Comprehensive Income for the ~~Six~~Three and Nine Months Ended ~~June~~September 30, 2017 and 2016		6
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016		7
Notes to Consolidated Financial Statements		78
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		1617
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk		2526
ITEM 4. Controls and Procedures		2526
PART II. OTHER INFORMATION		2627
ITEM 1A. Risk Factors		2627
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds		2627
ITEM 6. Exhibits		2728


~~3.1~~		Certificate of Amendment to Restated Certificate of Incorporation of Forrester Research, Inc., filed May 23, 2017 (Filed as an Exhibit to Forrester’s Current Report on Form 8-K filed May 25, 2017 (File No. 000-21633) and incorporated herein by reference.)

~~3.2~~		~~Amended and Restated By-Laws of Forrester Research, Inc. (filed herewith)~~

31.1		Certification of the Principal Executive Officer. (filed herewith)

31.2		Certification of the Principal Financial Officer. (filed herewith)

32.1		Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)

32.2		Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)

101.INS		XBRL Instance Document. (filed herewith)

101.SCH		XBRL Taxonomy Extension Schema. (filed herewith)

101.CAL		XBRL Taxonomy Extension Calculation Linkbase. (filed herewith)

101.DEF		XBRL Taxonomy Extension Definition Linkbase. (filed herewith)

101.LAB		XBRL Taxonomy Extension Label Linkbase. (filed herewith)

101.PRE		XBRL Taxonomy Extension Presentation Linkbase. (filed herewith)

FORRESTER RESEARCH, INC.

By:		/s/ Michael A. Doyle
		Michael A. Doyle
		Chief Financial Officer (Principal financial officer)

	As of December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(7	)	$	1,793
Corporate obligations		59,481		2		(129	)		59,354
Total	$	61,281	$	2	$	(136	)	$	61,147

Exhibit No.		Document

~~3.1~~		Certificate of Amendment to Restated Certificate of Incorporation of Forrester Research, Inc., filed May23, 2017 (Filed as an exhibit to Forrester’s Current Report on Form 8-K filed May 25, 2017 (File No. 000-21633) and incorporated herein by reference.)

~~3.2~~		~~Amended and Restated By-Laws of Forrester Research, Inc. (filed herewith)~~

31.1		Certification of the Principal Executive Officer. (filed herewith)

31.2		Certification of the Principal Financial Officer. (filed herewith)

32.1		Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)

32.2		Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)

101.INS		XBRL Instance Document. (filed herewith)

101.SCH		XBRL Taxonomy Extension Schema. (filed herewith)

101.CAL		XBRL Taxonomy Extension Calculation Linkbase. (filed herewith)

101.DEF		XBRL Taxonomy Extension Definition Linkbase. (filed herewith)

101.LAB		XBRL Taxonomy Extension Label Linkbase. (filed herewith)

101.PRE		XBRL Taxonomy Extension Presentation Linkbase. (filed herewith)