Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FORR | ||
Entity Registrant Name | FORRESTER RESEARCH, INC. | ||
Entity Central Index Key | 1023313 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 18,050,000 | ||
Entity Public Float | $397,000,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $49,650 | $74,132 |
Marketable investments (Note 3) | 54,885 | 81,013 |
Accounts receivable, net (Note 11) | 67,429 | 77,543 |
Deferred commissions | 13,754 | 12,939 |
Prepaid expenses and other current assets | 22,277 | 20,762 |
Total current assets | 207,995 | 266,389 |
Property and equipment, net (Note 11) | 32,174 | 39,868 |
Goodwill (Note 2) | 76,683 | 80,001 |
Intangible assets, net (Note 2) | 3,382 | 5,777 |
Other assets | 12,473 | 10,167 |
Total assets | 332,707 | 402,202 |
Current Liabilities: | ||
Accounts payable | 912 | 1,024 |
Accrued expenses and other current liabilities (Note 11) | 36,217 | 33,471 |
Deferred revenue | 144,568 | 152,903 |
Total current liabilities | 181,697 | 187,398 |
Non-current liabilities (Note 11) | 9,408 | 10,142 |
Total liabilities | 191,105 | 197,540 |
Commitments (Note 6) | ||
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 - 20,856 and 20,491 in 2014 and 2013, respectively Outstanding 18,153 and 19,756 in 2014 and 2013, respectively | 209 | 205 |
Additional paid-in capital | 124,942 | 109,676 |
Retained earnings | 117,318 | 118,415 |
Treasury stock - 2,703 and 735 in 2014 and 2013, respectively, at cost | -99,254 | -26,088 |
Accumulated other comprehensive income (loss) | -1,613 | 2,454 |
Total stockholders' equity | 141,602 | 204,662 |
Total liabilities and stockholders' equity | $332,707 | $402,202 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 20,856,000 | 20,491,000 |
Common stock, shares outstanding | 18,153,000 | 19,756,000 |
Treasury stock, shares | 2,703,000 | 735,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Research services | $207,517 | $202,843 | $203,091 |
Advisory services and events | 104,545 | 94,807 | 89,940 |
Total revenues | 312,062 | 297,650 | 293,031 |
Operating expenses: | |||
Cost of services and fulfillment | 126,199 | 117,061 | 111,228 |
Selling and marketing | 115,753 | 107,073 | 101,390 |
General and administrative | 38,584 | 38,280 | 36,866 |
Depreciation | 9,325 | 9,268 | 8,921 |
Amortization of intangible assets | 2,171 | 2,230 | 2,445 |
Reorganization costs | 1,817 | 1,905 | 1,421 |
Total operating expenses | 293,849 | 275,817 | 262,271 |
Income from operations | 18,213 | 21,833 | 30,760 |
Other income, net | 464 | 592 | 1,300 |
Gains (losses) on investments, net | -288 | -2,433 | 94 |
Income before income taxes | 18,389 | 19,992 | 32,154 |
Income tax provision | 7,524 | 6,968 | 5,858 |
Net income | $10,865 | $13,024 | $26,296 |
Basic income per common share | $0.58 | $0.62 | $1.17 |
Diluted income per common share | $0.57 | $0.61 | $1.15 |
Basic weighted average common shares outstanding | 18,713 | 20,861 | 22,500 |
Diluted weighted average common shares outstanding | 19,007 | 21,353 | 22,929 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $10,865 | $13,024 | $26,296 |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation | -3,977 | 826 | 7,419 |
Net change in market value of investments | -90 | 1,040 | -3 |
Other comprehensive income (loss) | -4,067 | 1,866 | 7,416 |
Comprehensive income | $6,798 | $14,890 | $33,712 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2011 | $290,150 | $310 | $373,591 | $104,077 | ($181,000) | ($6,828) |
Beginning Balance, Shares at Dec. 31, 2011 | 30,962 | 8,215 | ||||
Issuance of common stock under stock plans, including tax effects | 10,379 | 5 | 10,374 | |||
Issuance of common stock under stock plans, including tax effects, Shares | 489 | |||||
Stock-based compensation expense | 5,397 | 5,397 | ||||
Purchase of common stock | -29,843 | -29,843 | ||||
Purchase of common stock, Shares | 943 | |||||
Dividends paid on common shares | -12,588 | -12,588 | ||||
Net income | 26,296 | 26,296 | ||||
Net change in marketable investments, net of tax | -3 | -3 | ||||
Foreign currency translation | 7,419 | 7,419 | ||||
Ending Balance at Dec. 31, 2012 | 297,207 | 315 | 389,362 | 117,785 | -210,843 | 588 |
Ending Balance, Shares at Dec. 31, 2012 | 31,451 | 9,158 | ||||
Issuance of common stock under stock plans, including tax effects | 17,118 | 7 | 17,111 | |||
Issuance of common stock under stock plans, including tax effects, Shares | 724 | |||||
Stock-based compensation expense | 6,051 | 6,051 | ||||
Purchase of common stock | -118,210 | -118,210 | ||||
Purchase of common stock, Shares | 3,261 | |||||
Retirement of treasury stock | -303,000 | -117 | -302,848 | 302,965 | ||
Retirement of treasury stock, Shares | -11,700 | -11,684 | -11,684 | |||
Dividends paid on common shares | -12,394 | -12,394 | ||||
Net income | 13,024 | 13,024 | ||||
Net change in marketable investments, net of tax | 1,040 | 1,040 | ||||
Foreign currency translation | 826 | 826 | ||||
Ending Balance at Dec. 31, 2013 | 204,662 | 205 | 109,676 | 118,415 | -26,088 | 2,454 |
Ending Balance, Shares at Dec. 31, 2013 | 20,491 | 735 | ||||
Issuance of common stock under stock plans, including tax effects | 7,826 | 4 | 7,822 | |||
Issuance of common stock under stock plans, including tax effects, Shares | 365 | |||||
Stock-based compensation expense | 7,444 | 7,444 | ||||
Purchase of common stock | -73,166 | -73,166 | ||||
Purchase of common stock, Shares | 1,968 | |||||
Dividends paid on common shares | -11,962 | -11,962 | ||||
Net income | 10,865 | 10,865 | ||||
Net change in marketable investments, net of tax | -90 | -90 | ||||
Foreign currency translation | -3,977 | -3,977 | ||||
Ending Balance at Dec. 31, 2014 | $141,602 | $209 | $124,942 | $117,318 | ($99,254) | ($1,613) |
Ending Balance, Shares at Dec. 31, 2014 | 20,856 | 2,703 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $10,865 | $13,024 | $26,296 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 9,325 | 9,268 | 8,921 |
Amortization of intangible assets | 2,171 | 2,230 | 2,445 |
Net (gains) losses from investments | 288 | 2,433 | -94 |
Deferred income taxes | -7,526 | -4,529 | -10,967 |
Stock-based compensation | 7,444 | 6,051 | 5,397 |
Amortization of premium on investments | 1,273 | 2,261 | 2,803 |
Foreign currency losses | 141 | 385 | 405 |
Changes in assets and liabilities | |||
Accounts receivable | 9,140 | -2,930 | 6,959 |
Deferred commissions | -815 | -3,529 | 2,607 |
Prepaid expenses and other current assets | 620 | 607 | 6,610 |
Accounts payable | -82 | 222 | -490 |
Accrued expenses and other liabilities | 2,171 | 3,547 | 549 |
Deferred revenue | -6,220 | 1,673 | 1,706 |
Net cash provided by operating activities | 28,795 | 30,713 | 53,147 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -1,503 | -3,127 | -5,103 |
Purchases of marketable investments | -35,386 | -44,667 | -91,421 |
Proceeds from sales and maturities of marketable investments | 60,112 | 105,086 | 91,335 |
Change in restricted cash | 946 | ||
Other investing activity | 1,542 | 264 | 167 |
Net cash provided by (used in) investing activities | 24,765 | 57,556 | -4,076 |
Cash flows from financing activities: | |||
Dividends paid on common stock | -11,962 | -12,394 | -12,588 |
Repurchases of common stock | -73,166 | -118,210 | -29,843 |
Proceeds from issuance of common stock under employee equity incentive plans | 8,969 | 17,387 | 11,215 |
Excess tax benefits from stock-based compensation | 244 | 737 | 345 |
Payment of deferred acquisition consideration | -900 | -864 | |
Net cash used in financing activities | -75,915 | -113,380 | -31,735 |
Effect of exchange rate changes on cash and cash equivalents | -2,127 | 433 | 427 |
Net increase (decrease) in cash and cash equivalents | -24,482 | -24,678 | 17,763 |
Cash and cash equivalents, beginning of year | 74,132 | 98,810 | 81,047 |
Cash and cash equivalents, end of year | 49,650 | 74,132 | 98,810 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | $14,180 | $9,358 | $7,102 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies | ||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||
Forrester Research, Inc. (“Forrester” or “the Company”) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester’s products and services are targeted to specific roles, including senior management in business strategy, marketing, and technology management principally at $1 billion-plus revenue companies who collaborate with Forrester to accelerate achievement of their business goals. The accompanying consolidated financial statements include the accounts of Forrester and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||||||||||||||
Management Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Forrester considers the more significant of these estimates to be revenue recognition, stock-based compensation, non-marketable investments, goodwill and intangible assets, and income taxes. On an ongoing basis, management evaluates its estimates. Actual results could differ from these estimates. | |||||||||||||||||||||||||
Out-of-Period Errors | |||||||||||||||||||||||||
During 2014 the Company recorded $0.3 million of pre-tax expenses ($0.2 million post tax) for out-of-period corrections, of which $0.4 million related to depreciation and $(0.1) million related to other immaterial amounts that related to prior periods. In addition, during 2014 the Company recorded $0.5 million of additional income tax expense for an out-of-period correction. The Company has concluded that these items are immaterial to all current and prior period financial statements. | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
The Company has certain financial assets recorded at fair value which 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 carrying amounts reflected in the Consolidated Balance Sheets for cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. | |||||||||||||||||||||||||
Cash, Cash Equivalents, and Marketable Investments | |||||||||||||||||||||||||
Forrester considers all short-term, highly liquid investments with original maturities at the time of purchase of 90 days or less to be cash equivalents. | |||||||||||||||||||||||||
The Company’s portfolio of investments may at any time include securities of U.S. government agencies, municipal notes, corporate notes and bonds, and money market funds. Forrester accounts for all marketable investments as available-for-sale securities and as such, the marketable investments are carried at fair value, with unrealized gains and losses (not related to credit losses) recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Realized gains and losses on securities are included in earnings and are determined using the specific identification method. The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required under current accounting standards. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive income (loss). The determination of whether a loss is considered temporary is based in part on whether the Company intends to sell the security or whether the Company would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. During the years ended December 31, 2014, 2013 and 2012, the Company did not record any other-than-temporary impairment charges on its available-for-sale securities. | |||||||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||||||
Forrester has no significant off-balance sheet or concentration of credit risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially subject Forrester to concentrations of credit risk are principally cash, cash equivalents, marketable investments, and accounts receivable. Forrester places its investments in highly rated securities. No single customer accounted for greater than 3% of revenues or accounts receivable in any of the periods presented. | |||||||||||||||||||||||||
Deferred Commissions | |||||||||||||||||||||||||
Commissions incurred in acquiring new or renewing existing contracts, which are earned in the month that a contract is booked, are deferred and expensed to operations as the related revenue is recognized. Forrester evaluates the recoverability of deferred commissions at each balance sheet date. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill is not amortized; however, it is required to be tested for impairment annually. Furthermore, testing for impairment is required on an interim basis if an event or circumstance indicates that it is more likely than not an impairment loss has been incurred. An impairment loss would be recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. Absent an event that indicates a specific impairment may exist, the Company has selected November 30 as the date for performing the annual goodwill impairment test. Goodwill impairment charges have not been required for the years ended December 31, 2014, 2013 and 2012. In connection with the Company’s new organizational structure, goodwill was allocated to its new reporting units (which are the Company’s three business segments) on a relative fair value basis. The Company performed an interim quantitative impairment test and concluded that there was no indication of impairment. | |||||||||||||||||||||||||
Impairment of Other Long-Lived Tangible and Intangible Assets | |||||||||||||||||||||||||
Forrester continually evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of long-lived assets and intangible assets may warrant revision or if events or circumstances indicate that the carrying value of these assets may be impaired. To compute whether assets have been impaired, the estimated undiscounted future cash flows for the estimated remaining useful life of the assets are compared to the carrying value. To the extent that the future cash flows are less than the carrying value, the assets are written down to the estimated fair value of the asset. Impairment charges have not been required for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
Non-Current Liabilities | |||||||||||||||||||||||||
The Company records certain liabilities that are expected to be settled over a period that exceeds one year as non-current liabilities. The Company also records as a non-current liability the portion of the deferred rent liability that is expected to be recognized over a period greater than one year. Non-current deferred rent liability at December 31, 2014 and 2013 was $6.5 million and $6.7 million, respectively, and primarily results from the difference between cash payments and the straight-line recognition of rent expense under the Company’s facility leases. | |||||||||||||||||||||||||
Foreign Currency | |||||||||||||||||||||||||
The functional currency of the majority of Forrester’s wholly-owned subsidiaries is their respective local currency. These subsidiary financial statements are translated to U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates during the corresponding period for revenues and expenses, with translation gains and losses accumulated as a component of accumulated other comprehensive income (loss). Gains and losses related to the remeasurement of monetary assets and liabilities denominated in a currency other than an entity’s functional currency are included in other income, net in the Consolidated Statements of Income. For the years ended December 31, 2014, 2013 and 2012, Forrester recorded $0.1 million, $0.4 million and $0.4 million of foreign exchange losses, respectively, in other income, net. | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss) are as follows (in thousands): | |||||||||||||||||||||||||
Net Unrealized | Cumulative | Total | |||||||||||||||||||||||
Gain (Loss) | Translation | Accumulated | |||||||||||||||||||||||
on Marketable | Adjustment | Other | |||||||||||||||||||||||
Investments | Comprehensive | ||||||||||||||||||||||||
Income (Loss) | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | (1,021 | ) | $ | (5,807 | ) | $ | (6,828 | ) | ||||||||||||||||
Foreign currency translation | — | 7,419 | 7,419 | ||||||||||||||||||||||
Unrealized gain on investments before reclassification, net of tax of $7 | 14 | — | 14 | ||||||||||||||||||||||
Reclassification adjustment for net gains realized in net income, net of tax of $12 | (17 | ) | — | (17 | ) | ||||||||||||||||||||
Balance at December 31, 2012 | (1,024 | ) | 1,612 | 588 | |||||||||||||||||||||
Foreign currency translation | — | 826 | 826 | ||||||||||||||||||||||
Unrealized loss on investments before reclassification, net of tax of $41 | (111 | ) | — | (111 | ) | ||||||||||||||||||||
Reclassification adjustment for net losses realized in net income, net of tax of $691 | 1,151 | — | 1,151 | ||||||||||||||||||||||
Balance at December 31, 2013 | 16 | 2,438 | 2,454 | ||||||||||||||||||||||
Foreign currency translation | — | (3,977 | ) | (3,977 | ) | ||||||||||||||||||||
Unrealized loss on investments before reclassification, net of tax of $47 | (84 | ) | — | (84 | ) | ||||||||||||||||||||
Reclassification adjustment for net gains realized in net income, net of tax of $8 | (6 | ) | — | (6 | ) | ||||||||||||||||||||
Balance at December 31, 2014 | $ | (74 | ) | $ | (1,539 | ) | $ | (1,613 | ) | ||||||||||||||||
Reclassification adjustments for net gains (losses) are reported in gains (losses) on investments, net in the Consolidated Statements of Income. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Forrester generates revenues from licensing research (including our data subscription products), performing advisory services and consulting projects and hosting events. Forrester executes contracts that govern the terms and conditions of each arrangement. Revenues are recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, services have been provided to the customer, and collectability is reasonably assured. Revenues are presented net of any sales or value added taxes that are collected from customers and remitted to the government. Revenue contracts may include either a single product or service or a combination of multiple products and services. Revenues from contracts that contain multiple products and services are allocated among the separate units of accounting based on their relative selling prices; however, the amount recognized is limited to the amount that is not contingent on future performance conditions. The Company obtains the selling prices of its products and services based on an analysis of standalone sales of these products and services during the year. Research services revenues are recognized ratably over the term of the contract. Advisory services revenues, such as workshops, speeches and advisory days, are recognized when the customer receives the agreed upon deliverable and consulting project revenues, which are short-term in nature and based upon fixed-fee agreements, are recognized as the services are provided. Reimbursed out-of-pocket expenses are recorded as advisory services revenue. Event revenues are recognized upon completion of the event. | |||||||||||||||||||||||||
Annual subscriptions to our RoleView research include access to all or a designated portion of our research, and depending on the type of license, membership in one or more of our Forrester leadership boards, unlimited phone or email analyst inquiry, unlimited participation in Forrester Webinars, and the right to attend one event. Contracts for RoleView are accounted for as two units of accounting: 1) the event ticket and 2) the remaining research services that are delivered throughout the contract period. Arrangement consideration is allocated to each of these elements based upon their relative selling prices, which is based on standalone sales of event tickets and the estimated selling price of the remaining research services. Annual subscriptions to our data subscription products include access to designated survey data products and access to a data advisor, which are delivered throughout the year, and are accounted for as one unit of accounting and recognized ratably as research services revenue over the membership period. For all contracts entered into through January 2013, clients were offered a service guarantee, which gave them the right to cancel their contracts prior to the end of the contract term and receive a refund for unused products or services. As of February 1, 2013 the Company discontinued its policy of offering all clients a service guarantee. | |||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
The Company recognizes the fair value of stock-based compensation expense over the requisite service period of the individual grantee, which generally equals the vesting period. Cash flows resulting from the tax benefits of tax deductions in excess of the compensation expense recognized for stock-based awards are classified as financing cash flows. The Company is required to estimate future forfeitures of stock-based awards for recognition of compensation expense. The Company will record additional expense if the actual forfeitures are lower than estimated and will record a recovery of prior recognized expense if the actual forfeitures are higher than estimated. The actual expense recognized over the vesting period will only be for those awards that vest. Stock-based compensation expense was recorded in the following expense categories (in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cost of services and fulfillment | $ | 4,316 | $ | 3,585 | $ | 3,085 | |||||||||||||||||||
Selling and marketing | 1,132 | 1,136 | 894 | ||||||||||||||||||||||
General and administrative | 1,996 | 1,330 | 1,418 | ||||||||||||||||||||||
Total | $ | 7,444 | $ | 6,051 | $ | 5,397 | |||||||||||||||||||
The options granted under the equity incentive plan and shares subject to the employee stock purchase plan were valued utilizing the Black Scholes model using the following assumptions and had the following fair values: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Equity Incentive | Employee Stock | Equity Incentive | Employee Stock | Equity Incentive | Employee Stock | ||||||||||||||||||||
Plans | Purchase Plan | Plans | Purchase Plan | Plans | Purchase Plan | ||||||||||||||||||||
Average risk-free interest rate | 1.69 | % | 0.06 | % | 0.85 | % | 0.12 | % | 0.85 | % | 0.14 | % | |||||||||||||
Expected dividend yield | 1.8 | % | 2 | % | 2.1 | % | 1.9 | % | 1.7 | % | 1.7 | % | |||||||||||||
Expected life | 5.1 Years | 0.5 Years | 4.9 Years | 0.5 Years | 4.5 Years | 0.5 Years | |||||||||||||||||||
Expected volatility | 26 | % | 24 | % | 36 | % | 22 | % | 40 | % | 31 | % | |||||||||||||
Weighted average fair value | $ | 7.91 | $ | 7.32 | $ | 9.21 | $ | 6.02 | $ | 9.64 | $ | 6.9 | |||||||||||||
Dividend yields are based on the initiation of a regular quarterly dividend program approved by the board of directors in February 2012. Expected volatility is based, in part, on the historical volatility of Forrester’s common stock as well as management’s expectations of future volatility over the expected term of the awards granted. The risk-free interest rate used is based on the U.S. Treasury Constant Maturity rate with an equivalent remaining term. Where the expected term of a stock-based award does not correspond with a term for which the interest rates are quoted, Forrester uses the rate with the maturity closest to the award’s expected term. The expected term calculation is based upon Forrester’s historical experience of exercise patterns. The unamortized fair value of stock-based awards as of December 31, 2014 was $15.8 million, with a weighted average remaining recognition period of 2.5 years. | |||||||||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||||||
Forrester maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make contractually obligated payments. When evaluating the adequacy of the allowance for doubtful accounts, the Company makes judgments regarding the collectability of accounts receivable by specifically analyzing historical bad debts, customer concentrations, current economic trends, and changes in the customer payment terms. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required and if the financial condition of the Company’s customers were to improve, the allowances may be reduced accordingly. | |||||||||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||||
Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over estimated useful lives of assets as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||
Computers and equipment | 3 to 10 Years | ||||||||||||||||||||||||
Computer software | 3 to 5 Years | ||||||||||||||||||||||||
Furniture and fixtures | 7 Years | ||||||||||||||||||||||||
Leasehold improvements | Shorter of asset life or lease term | ||||||||||||||||||||||||
Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over the respective lives as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||
Customer relationships | 5 to 11 Years | ||||||||||||||||||||||||
Research content | 1 to 2 Years | ||||||||||||||||||||||||
Technology | 7 Years | ||||||||||||||||||||||||
Trademarks | 1 Year | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
Forrester recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statements and tax basis of assets and liabilities as well as operating loss carryforwards. | |||||||||||||||||||||||||
Forrester’s provision for income taxes is composed of a current and a deferred provision for federal, state and foreign jurisdictions. The current provision is calculated as the estimated taxes payable or refundable on tax returns for the current year. The deferred income tax provision is calculated as the net change during the year in deferred tax assets and liabilities. Valuation allowances are provided if based on the weight of available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized. | |||||||||||||||||||||||||
Forrester accounts for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates these tax positions on a quarterly basis. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||||||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||||
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 stock equivalents consist of common stock issuable upon the exercise of outstanding stock options and restricted stock units. | |||||||||||||||||||||||||
Basic and diluted weighted average common shares are as follows (in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 18,713 | 20,861 | 22,500 | ||||||||||||||||||||||
Weighted average common equivalent shares | 294 | 492 | 429 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding | 19,007 | 21,353 | 22,929 | ||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, options to purchase approximately 0.6 million, 0.7 million and 0.8 million shares, respectively, were outstanding but not included in the diluted weighted average common share calculation as the effect would have been anti-dilutive. | |||||||||||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||||||||||
In May 2014, the 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 new standard will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. For Forrester, the standard will be effective in the first quarter of 2017. 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 not yet selected a transition method. The Company is currently evaluating the potential changes from this ASU to its future financial reporting and disclosures. | |||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard addresses the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The standard requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The adoption of this ASU as of January 1, 2014 did not have a material effect on the Company’s financial position. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Other Intangible Assets | (2) Goodwill and Other Intangible Assets | ||||||||||||||||
At the end of 2013 the Company reorganized its fulfillment organization into a single global research organization and a single global product organization to better support its client base by facilitating better research collaboration and quality, promoting a more uniform client experience and improved customer satisfaction, and encouraging innovation. During 2013 the Company also established a dedicated consulting organization to provide research-based project consulting services to its clients, allowing the Company’s research personnel to spend additional time on writing research and providing shorter-term advisory services. As of January 1, 2014 the Company conformed its internal reporting to match the new organizational structure and as such is reporting segment information for the newly formed Research, Product and Project Consulting organizations. The goodwill previously allocated to the former Business Technology (“BT”), Marketing and Strategy (“M&S”), and Events segments has been reassigned to the Products, Research and Project Consulting segments based on the relative fair values of the new segments. | |||||||||||||||||
A summary of the goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands). | |||||||||||||||||
BT | M&S | Events | Total | ||||||||||||||
Balance, December 31, 2012 | $ | 43,491 | $ | 33,362 | $ | 2,101 | $ | 78,954 | |||||||||
Translation adjustments | 577 | 442 | 28 | 1,047 | |||||||||||||
Balance, December 31, 2013 | $ | 44,068 | $ | 33,804 | $ | 2,129 | $ | 80,001 | |||||||||
Products | Research | Project | Total | ||||||||||||||
Consulting | |||||||||||||||||
Balance, January 1, 2014 | $ | 2,560 | $ | 77,441 | $ | — | $ | 80,001 | |||||||||
Translation adjustments | (106 | ) | (3,212 | ) | — | (3,318 | ) | ||||||||||
Balance, December 31, 2014 | $ | 2,454 | $ | 74,229 | $ | — | $ | 76,683 | |||||||||
As of December 31, 2014, the Company had no accumulated goodwill impairment losses. | |||||||||||||||||
A summary of Forrester’s intangible assets is as follows (in thousands): | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | ||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Customer relationships | $ | 32,995 | $ | 29,613 | $ | 3,382 | |||||||||||
Research content | 4,699 | 4,699 | — | ||||||||||||||
Technology | 1,507 | 1,507 | — | ||||||||||||||
Trademarks | 73 | 73 | — | ||||||||||||||
Total | $ | 39,274 | $ | 35,892 | $ | 3,382 | |||||||||||
December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | ||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Customer relationships | $ | 33,927 | $ | 28,552 | $ | 5,375 | |||||||||||
Research content | 4,699 | 4,699 | — | ||||||||||||||
Technology | 1,507 | 1,105 | 402 | ||||||||||||||
Trademarks | 73 | 73 | — | ||||||||||||||
Total | $ | 40,206 | $ | 34,429 | $ | 5,777 | |||||||||||
Amortization expense related to intangible assets was approximately $2.2 million, $2.2 million and $2.4 million during the years ended December 31, 2014, 2013 and 2012, respectively. Estimated amortization expense related to intangible assets that will continue to be amortized is as follows (in thousands): | |||||||||||||||||
Year ending December 31, 2015 | $ | 927 | |||||||||||||||
Year ending December 31, 2016 | 872 | ||||||||||||||||
Year ending December 31, 2017 | 822 | ||||||||||||||||
Year ending December 31, 2018 | 761 | ||||||||||||||||
Total | $ | 3,382 | |||||||||||||||
Marketable_Investments
Marketable Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Marketable Investments | (3) Marketable Investments | ||||||||||||||||
The following table summarizes the Company’s marketable investments, all of which are classified as available-for-sale (in thousands): | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Federal agency and corporate obligations | $ | 55,005 | $ | 13 | $ | (133 | ) | $ | 54,885 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
State and municipal obligations | $ | 6,809 | $ | 5 | $ | — | $ | 6,814 | |||||||||
Federal agency and corporate obligations | 74,179 | 112 | (92 | ) | 74,199 | ||||||||||||
Total | $ | 80,988 | $ | 117 | $ | (92 | ) | $ | 81,013 | ||||||||
The following table summarizes the maturity periods of the marketable securities in the Company’s portfolio as of December 31, 2014. | |||||||||||||||||
FY 2015 | FY2016 | FY2017 | Total | ||||||||||||||
Federal agency and corporate obligations | $ | 21,076 | $ | 16,109 | $ | 17,700 | $ | 54,885 | |||||||||
The following table shows the gross unrealized losses and market value of Forrester’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 December 31, 2014 | |||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||
Market | Unrealized | Market | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | ||||||||||||||
Federal agency and corporate obligations | $ | 38,175 | $ | 133 | $ | — | $ | — | |||||||||
As of December 31, 2013 | |||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||
Market | Unrealized | Market | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | ||||||||||||||
Federal agency and corporate obligations | $ | 30,645 | $ | 92 | $ | — | $ | — | |||||||||
Realized gains or losses on sales of the Company’s federal obligations, state and municipal bonds and corporate bonds were not significant for the years ended December 31, 2014 and 2012. During 2013 the Company sold its entire portfolio of ARS (par value $11.0 million) for a realized loss of $1.9 million that is included in gains (losses) on investments, net in the Consolidated Statements of Income. | |||||||||||||||||
The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and marketable investments) measured at fair value on a recurring basis (in thousands): | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds (1) | $ | 1,794 | $ | — | $ | — | $ | 1,794 | |||||||||
Federal agency and corporate obligations | — | 54,885 | — | 54,885 | |||||||||||||
Total | $ | 1,794 | $ | 54,885 | $ | — | $ | 56,679 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds (1) | $ | 6,897 | $ | — | $ | — | $ | 6,897 | |||||||||
State and municipal obligations | — | 6,814 | — | 6,814 | |||||||||||||
Federal agency and corporate obligations (2) | — | 80,449 | — | 80,449 | |||||||||||||
Total | $ | 6,897 | $ | 87,263 | $ | — | $ | 94,160 | |||||||||
-1 | Included in cash and cash equivalents. | ||||||||||||||||
-2 | $6.2 million included in cash and cash equivalents at December 31, 2013 as original maturities at the time of purchase were 90 days or less. | ||||||||||||||||
Level 2 assets consist of the Company’s entire portfolio of federal, state, municipal and corporate bonds. 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 December 31, 2014 and 2013 the Company held no Level 3 assets. Prior to October 30, 2013 the Company held state and municipal bonds with an auction reset feature (auction rate securities or “ARS”). In February 2008, auctions began to fail for these securities and continued to fail throughout 2013. On October 30, 2013 the Company sold its entire portfolio of ARS for net proceeds of $9.1 million and realized a loss on the sale of $1.9 million. Level 3 assets at December 31, 2012 consisted entirely of ARS. While the Company received interest income on its ARS investments at each interest reset date (which occurred at either 7 or 35 day intervals for each security), these investments traded infrequently and therefore did not have a readily determinable market value. Interest rates on the securities ranged from 0.1% to 0.4% and 0.1% to 0.5% during 2013 and 2012, respectively. The Company valued the ARS using a discounted cash flow model that included unobservable inputs including estimates of interest rates, discount rates and expected holding periods of the securities, which is considered a Level 3 valuation. | |||||||||||||||||
The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets for the year ended December 31, 2013 (in thousands): | |||||||||||||||||
ARS | |||||||||||||||||
Balance at December 31, 2012 | $ | 8,970 | |||||||||||||||
Sales | (9,108 | ) | |||||||||||||||
Gains included in other comprehensive income | 138 | ||||||||||||||||
Losses transferred out of other comprehensive loss | 1,892 | ||||||||||||||||
Losses included in earnings | (1,892 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||
NonMarketable_Investments
Non-Marketable Investments | 12 Months Ended |
Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-Marketable Investments | (4) Non-Marketable Investments |
At December 31, 2014 and 2013, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, were $3.8 million and $5.7 million, respectively, and are included in other assets in the Consolidated Balance Sheets. | |
One of the Company’s investments, with a book value of $0.7 million and $0.9 million at December 31, 2014 and 2013, respectively, is being accounted for using the cost method and, accordingly, is valued at cost unless an other-than-temporary impairment in its value occurs. The other investments 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. During the years ended December 31, 2014, 2013 and 2012, the Company recorded gains (losses) from its non-marketable investments of $(0.3) million, $(0.6) million and $0.1 million, respectively, which are included in gains (losses) on investments, net in the Consolidated Statements of Income. During the years ended December 31, 2014, 2013 and 2012, gross distributions of $1.5 million, $0.4 million and $0.5 million, respectively, were received from the funds. | |
In May 2013, the Company extended the expiration date of a cash bonus plan, originally adopted in 2000, that would pay a bonus, after the return of invested capital from certain of the Company’s investments, to certain key employees. To date, no bonuses have been paid under the plan. The plan will now automatically expire on June 30, 2015, subject to earlier expiration as provided in the plan in the event that prior to such date there are less than 10 participants in the plan or all of the Company’s invested capital (as defined in the plan) has been returned to the Company. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | (5) Income Taxes | ||||||||||||
Income before income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 12,939 | $ | 13,557 | $ | 24,124 | |||||||
Foreign | 5,450 | 6,435 | 8,030 | ||||||||||
Total | $ | 18,389 | $ | 19,992 | $ | 32,154 | |||||||
The components of the income tax provision (benefit) for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 11,644 | $ | 8,286 | $ | 12,420 | |||||||
State | 2,239 | 1,624 | 3,069 | ||||||||||
Foreign | 1,167 | 1,587 | 1,336 | ||||||||||
Total current | 15,050 | 11,497 | 16,825 | ||||||||||
Deferred: | |||||||||||||
Federal | (6,470 | ) | (3,935 | ) | (4,449 | ) | |||||||
State | (1,095 | ) | (562 | ) | (736 | ) | |||||||
Foreign | 39 | (32 | ) | (5,782 | ) | ||||||||
Total deferred | (7,526 | ) | (4,529 | ) | (10,967 | ) | |||||||
Income tax provision | $ | 7,524 | $ | 6,968 | $ | 5,858 | |||||||
A reconciliation of the federal statutory rate to Forrester’s effective tax rate for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (decrease) in tax resulting from: | |||||||||||||
State tax provision, net of federal benefit | 4.2 | 3.4 | 4.9 | ||||||||||
Foreign tax rate differential | (3.2 | ) | (4.9 | ) | (2.7 | ) | |||||||
Stock option compensation deduction | 2.6 | 2 | 0.7 | ||||||||||
Non-deductible expenses | 1.1 | 2.4 | 0.6 | ||||||||||
Change in valuation allowance | (1.0 | ) | 0.5 | (0.8 | ) | ||||||||
Foreign tax credits | — | (3.7 | ) | (0.9 | ) | ||||||||
Benefit upon audit settlement | — | — | (21.1 | ) | |||||||||
Out-of-period adjustment | 2.5 | — | — | ||||||||||
Other, net | (0.3 | ) | 0.2 | 2.5 | |||||||||
Effective tax rate | 40.9 | % | 34.9 | % | 18.2 | % | |||||||
The components of deferred income taxes as of December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Non-deductible reserves and accruals | $ | 10,164 | $ | 7,239 | |||||||||
Stock compensation | 5,086 | 4,539 | |||||||||||
Other assets | 838 | — | |||||||||||
Net operating loss and other carryforwards | 9,070 | 10,830 | |||||||||||
Gross deferred tax asset | 25,158 | 22,608 | |||||||||||
Less—valuation allowance | (1,565 | ) | (2,200 | ) | |||||||||
Sub-total | 23,593 | 20,408 | |||||||||||
Depreciation and amortization | (799 | ) | (2,945 | ) | |||||||||
Goodwill amortization | (5,224 | ) | (5,401 | ) | |||||||||
Other liabilities | — | (2,134 | ) | ||||||||||
Deferred commissions | (5,399 | ) | (5,080 | ) | |||||||||
Net deferred tax asset | $ | 12,171 | $ | 4,848 | |||||||||
In July 2012, one of the Company’s non-U.S. subsidiaries licensed the intellectual property rights for the territory outside of the U.S. from the Company’s U.S. entity in order to align the Company’s business with its global operations. The license of intellectual property occurred between two wholly owned legal entities within Forrester that are based in different tax jurisdictions, creating a taxable gain reportable in the transferor entity’s jurisdiction. The gain is recognized for income tax purposes only and not in the financial statements. As the gain was the result of an intra-entity transaction, it was eliminated in consolidation for purposes of the consolidated financial statements. | |||||||||||||
In accordance with GAAP, no gain or immediate tax impact should be recognized in the consolidated financial statements as a result of an intra-entity transaction. The Company recognizes tax expense specifically associated with an intra-entity transfer of intangible property over a period equal to the expected economic lives of the underlying assets being licensed. An amortization period of 9.5 years was determined based on the estimated economic lives of the intellectual property licensed. | |||||||||||||
Current net deferred tax assets and long-term net deferred tax assets were $4.6 and $7.9 million as of December 31, 2014 and $2.2 and $3.7 million as of December 31, 2013, and are included in prepaid and other current assets and other assets, respectively, in the Consolidated Balance Sheets. Current net deferred tax liabilities and long-term net deferred tax liabilities were $0.2 million and $0.1 million as of December 31, 2014 and $0.2 and $0.9 million as of December 31, 2013, and are included in accrued expenses and other current liabilities and non-current liabilities, respectively, in the Consolidated Balance Sheets. | |||||||||||||
The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a net deferred income tax asset. Judgment is required in considering the relative impact of negative and positive evidence. In arriving at these judgments, the weight given to the potential effect of negative and positive evidence is commensurate with the extent to which it can be objectively verified. Although realization is not assured, based upon the Company’s historical taxable income and projections of the Company’s future taxable income over the periods during which the deferred tax assets are deductible and the carryforwards expire, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances, as discussed below. | |||||||||||||
As of December 31, 2014 and 2013, the Company maintained a valuation allowance of approximately $1.6 million and $2.2 million, respectively, primarily relating to foreign net operating loss carryforwards from an acquisition and U.S. capital losses. | |||||||||||||
As of December 31, 2014, the Company had U.S. federal net operating loss carryforwards of approximately $5.4 million obtained from acquired businesses. These carryforwards are limited pursuant to section 382 of the Internal Revenue Code due to changes in ownership as a result of the acquisitions. If unused, these carryforwards would expire on various dates from 2019 through 2028. | |||||||||||||
The Company also has foreign net operating loss carryforwards of approximately $23.5 million, which can be carried forward indefinitely. Approximately $5.0 million of the foreign net operating loss carryforwards relate to a prior acquisition, the utilization of which is subject to limitation under the tax law of the United Kingdom. In 2012 the Company settled a tax audit at its German subsidiary resulting in the recognition of $5.9 million in deferred tax assets relating to net operating losses and intangible assets at this subsidiary. | |||||||||||||
As of December 31, 2014, the Company had U.S. federal and state capital loss carryforwards of $1.2 million, of which $0.8 million expires in 2016 and $0.4 million expires in 2018. | |||||||||||||
The following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Deferred tax valuation allowance at January 1 | $ | 2,200 | $ | 2,086 | $ | 3,077 | |||||||
Additions | 17 | 801 | 11 | ||||||||||
Deductions | (574 | ) | (712 | ) | (1,066 | ) | |||||||
Translation adjustments | (78 | ) | 25 | 64 | |||||||||
Deferred tax valuation allowance at December 31 | $ | 1,565 | $ | 2,200 | $ | 2,086 | |||||||
During the years ended December 31, 2013 and 2012, the Company recognized approximately $0.4 million and $(0.3) million, respectively, of net tax benefits (deficiencies) from tax deductions in excess of (or less than) book deductions resulting from employee stock option exercises. Net tax benefits were insignificant for the year ended December 31, 2014. The net tax benefits (deficiencies) were recorded as an increase (decrease) to additional paid-in-capital. Excess tax benefits from share-based payments are recognized in the year that the deduction reduces the amount of cash payable for taxes. | |||||||||||||
Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $15.6 million as of December 31, 2014. The Company has not provided any additional federal or state income taxes or foreign withholding taxes on the undistributed earnings as such earnings have been indefinitely reinvested in the business. Due to the various methods by which such earnings could be repatriated in the future, the amount of taxes attributable to the undistributed earnings is not practicably determinable. | |||||||||||||
The Company utilizes a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken on a tax return. The first step is a determination of whether the tax position should be recognized in the financial statements. The second step determines the measurement of the tax position. A reconciliation of the beginning and ending amount of unrecognized tax benefits is summarized as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits at January 1 | $ | 2,012 | $ | 1,844 | $ | 1,269 | |||||||
Additions for tax positions of prior years | 6 | 414 | 112 | ||||||||||
Reductions for tax positions of prior years | — | (256 | ) | (37 | ) | ||||||||
Additions for tax positions of current year | 121 | 19 | 1,444 | ||||||||||
Settlements | — | — | (582 | ) | |||||||||
Lapse of statute of limitations | — | — | (360 | ) | |||||||||
Translation adjustments | (3 | ) | (9 | ) | (2 | ) | |||||||
Unrecognized tax benefits at December 31 | $ | 2,136 | $ | 2,012 | $ | 1,844 | |||||||
As of December 31, 2014, the total amount of unrecognized tax benefits totaled approximately $2.1 million, all of which if recognized, would decrease our effective tax rate in a future period. It is not expected that a significant amount of unrecognized tax benefits would be recognized within the next 12 months. | |||||||||||||
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense and such amounts were not significant in the years ended December 31, 2014, 2013 and 2012. At December 31, 2014 and 2013, the Company had $0.2 million and $0.1 million, respectively, of accrued interest and penalties related to uncertain tax positions. | |||||||||||||
The Company files income tax returns in the U.S. and in foreign jurisdictions. Generally, the Company is no longer subject to U.S., state, local and foreign income tax examinations by tax authorities in its major jurisdictions for years before 2009, except to the extent of net operating loss and tax credit carryforwards from those years. Major taxing jurisdictions include the U.S., the Netherlands, the United Kingdom, Germany and Switzerland. During 2014 the Internal Revenue Service completed the audit of the Company’s 2011 consolidated Federal income tax return and there were no material adjustments. |
Commitments
Commitments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments | (6) Commitments | ||||
As of December 31, 2014, Forrester had future contractual obligations as follows for operating leases (in thousands): | |||||
2015 | $ | 10,628 | |||
2016 | 9,503 | ||||
2017 | 9,347 | ||||
2018 | 9,104 | ||||
2019 | 8,843 | ||||
Thereafter | 50,792 | ||||
Total minimum lease payments | $ | 98,217 | |||
The cost of these operating leases, including any contractual rent increases, rent concessions, and landlord incentives, are recognized ratably over the life of the related lease agreement. Aggregate rent expense was $15.9 million, $15.3 million and $14.4 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Stockholders' Equity | (7) Stockholders’ Equity | ||||||||||||||||
Preferred Stock | |||||||||||||||||
Forrester has authorized 500,000 shares of $0.01 par value preferred stock. The Board of Directors has full authority to issue this stock and to fix the voting powers, preferences, rights, qualifications, limitations, or restrictions thereof, including dividend rights, conversion rights, redemption privileges and liquidation preferences and the number of shares constituting any series or designation of such series. | |||||||||||||||||
Treasury Stock | |||||||||||||||||
Through 2014, Forrester’s Board of Directors has authorized an aggregate $410.0 million to purchase common stock under its stock repurchase program including $25.0 million authorized in April 2014. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. As of December 31, 2014 the Company had repurchased approximately 14.4 million shares of common stock at an aggregate cost of $402.2 million. | |||||||||||||||||
On April 3, 2013 the Company commenced a “modified Dutch auction” self-tender offer to repurchase up to $130 million of its common stock at a price per share within the range of $32.00 to $36.00. A “modified Dutch auction” self-tender offer allows stockholders to indicate how many shares and at what price within the company’s specified range (in increments of $0.25 per share) they wish to tender. When the tender offer expired, based upon the number of shares tendered and the prices specified by the tendering stockholders, the Company determined the purchase price, which was the lowest price per share within the range that enabled the Company to purchase up to $130 million of its common stock. The tender offer expired on May 1, 2013 and the Company purchased 2,054,732 shares of its common stock on May 7, 2013 at a purchase price of $36.00 per share for an aggregate purchase price of $74.0 million, plus approximately $1.1 million of expenses related to the tender offer. | |||||||||||||||||
For the year ended December 31, 2013, the Company retired 11.7 million shares of treasury stock. These retired shares are now included in the Company’s pool of authorized but unissued shares. The retired stock had a carrying value of approximately $303.0 million. The Company’s accounting policy upon the formal retirement of treasury stock is to deduct the par value of the retired stock from Common Stock and to reflect the excess of cost over par value as a deduction from Additional Paid-in Capital. | |||||||||||||||||
Dividends | |||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company declared and paid four quarterly dividends of $0.16, $0.15 and $0.14 per share each quarter, respectively, amounting to $0.64 or $12.0 million, $0.60 or $12.4 million and $0.56 per share or $12.6 million per year, respectively. | |||||||||||||||||
Equity Plans | |||||||||||||||||
Forrester maintains the following four equity incentive plans: the Amended and Restated 2006 Equity Incentive Plan (the “2006 Plan”), the Amended and Restated 1996 Equity Incentive Plan (the “1996 Plan”), the 2006 Stock Option Plan for Directors, as amended (the “2006 Directors’ Plan”) and the 1996 Stock Option Plan for Non-Employee Directors (the “1996 Directors’ Plan”). Upon approval of the 2006 Plan and the 2006 Directors’ Plan by stockholders, no future awards under the 1996 Plan and 1996 Directors’ Plan could be granted or issued. In addition, upon approval of an amendment to the 2006 Plan by stockholders in 2012, no future awards under the 2006 Directors’ Plan could be granted or issued. | |||||||||||||||||
The 2006 Plan provides for the issuance of stock-based awards, including incentive stock options (“ISOs”), non-qualified stock options (“NSOs”), and restricted stock units (“RSUs”) to purchase up to 4,350,000 shares authorized in the 2006 Plan, 80,000 shares returned from the 2006 Directors’ Plan and up to 2,500,000 shares returned from the 1996 Plan. Under the terms of the 2006 Plan, ISOs may not be granted at less than fair market value on the date of grant (and in no event less than par value). Options generally vest annually over four years and expire after 10 years and RSUs generally vest over three to four years, in each case sometimes subject to performance conditions in addition to the passage of time. Options and RSUs granted under the 2006 Plan immediately vest upon certain events, as described in the 2006 Plan. As of December 31, 2014, approximately 1.3 million shares were available for future grant of awards under the 2006 Plan. | |||||||||||||||||
The 1996 Plan provided for the issuance of stock-based awards, including ISOs and NSOs, to purchase up to 13,500,000 shares of common stock. Under the terms of the 1996 Plan, ISOs were not granted at less than fair market value on the date of grant (and in no event less than par value). ISO grants to holders of 10% of the combined voting power of all classes of Forrester stock were required to be granted at an exercise price not less than 110% of the fair market value at the date of grant. Options generally vested ratably over two to four years and expire after 10 years and were sometimes subject to performance conditions in addition to the passage of time. At December 31, 2014, approximately 24,000 options remain outstanding and are fully vested under the 1996 Plan. | |||||||||||||||||
The 2006 Directors’ Plan provided for the issuance of options to purchase up to 450,000 shares of common stock. Prior to the 2012 annual stockholders meeting, each non-employee director who became a director between annual meetings of stockholders was entitled to receive an option to purchase 6,000 shares of common stock and, following each annual meeting of stockholders, each non-employee director was entitled to receive an option to purchase a specified number of shares of common stock, in all cases at an exercise price equal to the fair market value on the date of grant. Prior to 2011, the annual grant was an option for 12,500 shares of common stock and, in 2011, an option for 12,000 shares of common stock. These options vest in four equal annual installments, with the first installment vested on the date of grant in the case a new director award or upon the anniversary of the applicable annual meeting of stockholders. As of December 31, 2014, approximately 0.2 million options remain outstanding and are fully vested under the 2006 Directors’ Plan. | |||||||||||||||||
Options issued under the 1996 Directors’ Plan were granted at an exercise price equal to the fair market value of the common stock at the time of grant, each year immediately following Forrester’s annual stockholders’ meeting. These options vested in four equal installments on the first, second, third, and fourth anniversaries of the date of grant. At December 31, 2014, approximately 13,000 options remain outstanding and are fully vested under the 1996 Directors’ Plan. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock option activity for the year ended December 31, 2014 is presented below (in thousands, except per share data and contractual term): | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price Per | Contractual | ||||||||||||||||
Share | Term (in years) | ||||||||||||||||
Outstanding at December 31, 2013 | 1,734 | $ | 31.85 | ||||||||||||||
Granted | 550 | 38.2 | |||||||||||||||
Exercised | (255 | ) | 29.67 | ||||||||||||||
Forfeited | (75 | ) | 34.82 | ||||||||||||||
Outstanding at December 31, 2014 | 1,954 | $ | 33.81 | 7.11 | $ | 10,870 | |||||||||||
Exercisable at December 31, 2014 | 852 | $ | 30.46 | 5.03 | $ | 7,582 | |||||||||||
Vested and expected to vest at December 31, 2014 | 1,837 | $ | 33.61 | 6.99 | $ | 10,587 | |||||||||||
The total intrinsic value of options exercised during 2014, 2013 and 2012 was $2.3 million, $6.1 million and $3.5 million, respectively. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
Restricted stock units (“RSUs”) represent the right to receive one share of Forrester common stock when the restrictions lapse and the vesting conditions are met, and are valued on the date of grant based upon the value of the Company’s stock on the date of grant less the present value of dividends expected to be paid during the requisite service period. Shares of Forrester’s common stock will be delivered to the grantee upon vesting, subject to a reduction of shares for payment of withholding taxes. The weighted average grant date fair value for RSUs granted in 2014, 2013 and 2012 was $36.67, $34.58 and $33.88, respectively. The value of RSUs vested and converted to common stock, based on the value of Forrester’s common stock on the date of vesting, was $3.5 million, $2.4 million and $1.6 million during 2014, 2013 and 2012, respectively. | |||||||||||||||||
RSU activity for the year ended December 31, 2014 is presented below (in thousands, except per share data): | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant | |||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Unvested at December 31, 2013 | 372 | $ | 34.14 | ||||||||||||||
Granted | 235 | 36.67 | |||||||||||||||
Vested | (96 | ) | 33.99 | ||||||||||||||
Forfeited | (78 | ) | 33.61 | ||||||||||||||
Unvested at December 31, 2014 | 433 | $ | 35.64 | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The Amended and Restated Employee Stock Purchase Plan (the “Stock Purchase Plan”) provides for the issuance of up to 0.7 million shares of common stock and as of December 31, 2014 approximately 0.3 million shares remain available for issuance. With certain limited exceptions, all employees of Forrester whose customary employment is more than 20 hours per week, including officers and directors who are employees, are eligible to participate in the Stock Purchase Plan. Purchase periods under the Stock Purchase Plan are generally six months in length and commence on each successive March 1 and September 1. Stock purchased under the Stock Purchase Plan is required to be held for one-year before it is able to be sold. During each purchase period the maximum number of shares of common stock that may be purchased by an employee is limited to the number of shares equal to $12,500 divided by the fair market value of a share of common stock on the first day of the purchase period. An employee may elect to have up to 10% deducted from his or her compensation for the purpose of purchasing shares under the Stock Purchase Plan. The price at which the employee’s shares are purchased is the lower of: a) 85% of the closing price of the common stock on the day that the purchase period commences, or b) 85% of the closing price of the common stock on the day that the purchase period terminates. | |||||||||||||||||
Shares purchased by employees under the Stock Purchase Plan are as follows (in thousands, except per share data): | |||||||||||||||||
Shares | Purchase | ||||||||||||||||
Purchase Period Ended | Purchased | Price | |||||||||||||||
28-Feb-14 | 23 | $ | 27.83 | ||||||||||||||
31-Aug-14 | 21 | $ | 30.55 | ||||||||||||||
28-Feb-13 | 26 | $ | 23.34 | ||||||||||||||
31-Aug-13 | 27 | $ | 23.42 | ||||||||||||||
Employee_Pension_Plans
Employee Pension Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Pension Plans | (8) Employee Pension Plans |
Forrester sponsors several defined contribution plans for eligible employees. Generally, the defined contribution plans have funding provisions which, in certain situations, require contributions based upon formulas relating to employee wages or the level of elective participant contributions, as well as allow for additional discretionary contributions. Further, certain plans contain vesting provisions. Forrester’s contributions to these plans totaled approximately $4.0 million, $3.6 million and $3.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Reorganization
Reorganization | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | |||||
Reorganization | (9) Reorganization | ||||
During 2014 the Company terminated approximately 1% of its employees across various geographies and functions primarily to realign resources due to the Company’s new organizational structure implemented in late 2013. The Company incurred $1.8 million of severance and related costs for this action. | |||||
During the year ended December 31, 2013 the Company incurred $1.9 million of severance and related costs for the elimination of 31 jobs or approximately 2.5% of its workforce worldwide to streamline operations. | |||||
In the first quarter of 2012 the Company realigned its sales force to simplify the selling process to its customers and to increase the productivity of the sales organization. The Company incurred approximately $0.4 million of severance costs in the fourth quarter of 2011 for three sales employees located outside of the U.S. based on statutory termination benefits in their country of employment and the fact that termination was considered probable at December 31, 2011. The Company incurred an additional $1.4 million of severance and related costs in 2012 for the termination of 17 additional employees related to the sales reorganization and other cost reduction initiatives. | |||||
The activity related to the reorganization accrual during the years ended December 31, 2014 and 2013 is as follows (in thousands): | |||||
Workforce | |||||
Reduction | |||||
Accrual at December 31, 2012 | $ | 14 | |||
Additions | 1,905 | ||||
Cash payments | (1,798 | ) | |||
Accrual at December 31, 2013 | 121 | ||||
Additions | 1,817 | ||||
Cash payments | (1,820 | ) | |||
Accrual at December 31, 2014 | $ | 118 | |||
Operating_Segment_and_Enterpri
Operating Segment and Enterprise Wide Reporting | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Operating Segment and Enterprise Wide Reporting | (10) Operating Segment and Enterprise Wide Reporting | ||||||||||||||||
At the end of 2013 the Company reorganized its fulfillment organization into a single global research organization and a single global product organization to better support its client base by facilitating better research collaboration and quality, promoting a more uniform client experience and improved customer satisfaction, and encouraging innovation. During 2013 the Company also established a dedicated consulting organization to provide research-based project consulting services to its clients, allowing the Company’s research personnel to spend additional time on writing research and providing shorter-term advisory services. As of January 1, 2014 the Company conformed its internal reporting to match the new organizational structure and as such is reporting segment information for the newly formed Research, Product and Project Consulting organizations. The 2013 and 2012 segment amounts have been reclassified to conform to the current presentation. | |||||||||||||||||
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 RoleView product. 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. During 2013, the Company began to transition the delivery of project consulting to a dedicated project consulting organization. The transition was essentially complete at the end of 2014 such that the vast majority of project consulting will be delivered by the project consulting organization in 2015. | |||||||||||||||||
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, Forrester Leadership Boards and events organizations. Revenue in this segment includes all revenue for the Company (including RoleView) 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 Company’s project consulting services. During 2013 the Company began to hire dedicated consultants to transition the delivery of project consulting services from research personnel (included in the Research segment) to the new Project Consulting segment. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment. Revenue and expenses in 2012 include the activity of a pre-existing dedicated consulting team that performed consulting services that were outside of the scope of the consulting delivered by research personnel. | |||||||||||||||||
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, 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 and gains (losses) on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements. | |||||||||||||||||
The Company does not identify or allocate assets, including capital expenditures, by operating segment. Accordingly, assets are not being reported by segment because the information is not available by segment and is not reviewed in the evaluation of performance or making decisions in the allocation of resources. | |||||||||||||||||
The following tables present information about reportable segments (in thousands): | |||||||||||||||||
Products | Research | Project | Consolidated | ||||||||||||||
Consulting | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Research services revenues | $ | 207,517 | $ | — | $ | — | $ | 207,517 | |||||||||
Advisory services and events revenues | 20,759 | 48,658 | 35,128 | 104,545 | |||||||||||||
Total segment revenues | 228,276 | 48,658 | 35,128 | 312,062 | |||||||||||||
Segment expenses | 39,466 | 53,307 | 27,236 | 120,009 | |||||||||||||
Contribution margin (loss) | 188,810 | (4,649 | ) | 7,892 | 192,053 | ||||||||||||
Selling, marketing, administrative and other expenses | (169,852 | ) | |||||||||||||||
Amortization of intangible assets | (2,171 | ) | |||||||||||||||
Reorganization costs | (1,817 | ) | |||||||||||||||
Other income and gains (losses) on investments | 176 | ||||||||||||||||
Income before income taxes | $ | 18,389 | |||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Research services revenues | $ | 202,843 | $ | — | $ | — | $ | 202,843 | |||||||||
Advisory services and events revenues | 19,376 | 57,865 | 17,566 | 94,807 | |||||||||||||
Total segment revenues | 222,219 | 57,865 | 17,566 | 297,650 | |||||||||||||
Segment expenses | 36,384 | 58,685 | 15,700 | 110,769 | |||||||||||||
Contribution margin (loss) | 185,835 | (820 | ) | 1,866 | 186,881 | ||||||||||||
Selling, marketing, administrative and other expenses | (160,913 | ) | |||||||||||||||
Amortization of intangible assets | (2,230 | ) | |||||||||||||||
Reorganization costs | (1,905 | ) | |||||||||||||||
Other income and gains (losses) on investments | (1,841 | ) | |||||||||||||||
Income before income taxes | $ | 19,992 | |||||||||||||||
Products | Research | Project | Consolidated | ||||||||||||||
Consulting | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Research services revenues | $ | 203,091 | $ | — | $ | — | $ | 203,091 | |||||||||
Advisory services and events revenues | 17,905 | 56,928 | 15,107 | 89,940 | |||||||||||||
Total segment revenues | 220,996 | 56,928 | 15,107 | 293,031 | |||||||||||||
Segment expenses | 36,468 | 57,440 | 13,109 | 107,017 | |||||||||||||
Contribution margin (loss) | 184,528 | (512 | ) | 1,998 | 186,014 | ||||||||||||
Selling, marketing, administrative and other expenses | (151,388 | ) | |||||||||||||||
Amortization of intangible assets | (2,445 | ) | |||||||||||||||
Reorganization costs | (1,421 | ) | |||||||||||||||
Other income and gains (losses) on investments | 1,394 | ||||||||||||||||
Income before income taxes | $ | 32,154 | |||||||||||||||
Net long-lived tangible assets by location as of December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 28,558 | $ | 35,167 | |||||||||||||
United Kingdom | 1,625 | 2,212 | |||||||||||||||
Europe (excluding United Kingdom) | 329 | 174 | |||||||||||||||
Other | 1,662 | 2,315 | |||||||||||||||
$ | 32,174 | $ | 39,868 | ||||||||||||||
Net revenues by geographic destination and as a percentage of total revenues for the years ended December 31, 2014, 2013, and 2012 are as follows (in thousands): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
United States | $ | 232,440 | $ | 218,900 | $ | 211,211 | |||||||||||
Europe (excluding United Kingdom) | 30,257 | 30,956 | 33,146 | ||||||||||||||
United Kingdom | 16,804 | 16,293 | 16,555 | ||||||||||||||
Canada | 17,089 | 16,995 | 16,742 | ||||||||||||||
Other | 15,472 | 14,506 | 15,377 | ||||||||||||||
$ | 312,062 | $ | 297,650 | $ | 293,031 | ||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
United States | 74 | % | 74 | % | 72 | % | |||||||||||
Europe (excluding United Kingdom) | 10 | % | 10 | % | 11 | % | |||||||||||
United Kingdom | 5 | % | 5 | % | 6 | % | |||||||||||
Canada | 6 | % | 6 | % | 6 | % | |||||||||||
Other | 5 | % | 5 | % | 5 | % | |||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||
Certain_Balance_Sheet_Accounts
Certain Balance Sheet Accounts | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Certain Balance Sheet Accounts | (11) Certain Balance Sheet Accounts | ||||||||||||
Property and Equipment: | |||||||||||||
Property and equipment as of December 31, 2014 and 2013 is recorded at cost less accumulated depreciation and consists of the following (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Computers and equipment | $ | 17,785 | $ | 18,446 | |||||||||
Computer software | 22,399 | 22,315 | |||||||||||
Furniture and fixtures | 8,627 | 8,902 | |||||||||||
Leasehold improvements | 25,815 | 26,029 | |||||||||||
Total property and equipment | 74,626 | 75,692 | |||||||||||
Less accumulated depreciation | 42,452 | 35,824 | |||||||||||
$ | 32,174 | $ | 39,868 | ||||||||||
Accrued Expenses and Other Current Liabilities: | |||||||||||||
Accrued expenses and other current liabilities as of December 31, 2014 and 2013 consist of the following (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Payroll and related benefits | $ | 24,038 | $ | 20,635 | |||||||||
Taxes | 2,050 | 2,692 | |||||||||||
Other | 10,129 | 10,144 | |||||||||||
$ | 36,217 | $ | 33,471 | ||||||||||
Non-current Liabilities | |||||||||||||
Non-current liabilities as of December 31, 2014 and 2013 consist of the following (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liability | $ | 97 | $ | 852 | |||||||||
Deferred rent | 6,501 | 6,678 | |||||||||||
Other | 2,810 | 2,612 | |||||||||||
$ | 9,408 | $ | 10,142 | ||||||||||
Allowance for Doubtful Accounts: | |||||||||||||
A roll-forward of the allowance for doubtful accounts as of and for the years ended December 31, 2014, 2013, and 2012 is as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 254 | $ | 404 | $ | 326 | |||||||
Provision for doubtful accounts | 320 | 189 | 708 | ||||||||||
Write-offs | (386 | ) | (339 | ) | (630 | ) | |||||||
Balance, end of year | $ | 188 | $ | 254 | $ | 404 | |||||||
Summary_Selected_Quarterly_Fin
Summary Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary Selected Quarterly Financial Data | (12) Summary Selected Quarterly Financial Data (unaudited) | ||||||||||||||||
The following is a summary of selected unaudited consolidated quarterly financial data for the years ended December 31, 2014 and 2013 (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Total revenues | $ | 73,071 | $ | 82,947 | $ | 75,363 | $ | 80,681 | |||||||||
Income from operations | $ | 20 | $ | 7,080 | $ | 4,925 | $ | 6,188 | |||||||||
Net income (loss) | $ | (66 | ) | $ | 4,289 | $ | 3,043 | $ | 3,599 | ||||||||
Basic income per common share | $ | — | $ | 0.23 | $ | 0.17 | $ | 0.2 | |||||||||
Diluted income per common share | $ | — | $ | 0.23 | $ | 0.16 | $ | 0.19 | |||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Total revenues | $ | 71,361 | $ | 78,953 | $ | 69,815 | $ | 77,521 | |||||||||
Income from operations | $ | 3,280 | $ | 9,788 | $ | 4,301 | $ | 4,464 | |||||||||
Net income | $ | 2,169 | $ | 6,185 | $ | 2,509 | $ | 2,161 | |||||||||
Basic income per common share | $ | 0.1 | $ | 0.29 | $ | 0.12 | $ | 0.11 | |||||||||
Diluted income per common share | $ | 0.1 | $ | 0.28 | $ | 0.12 | $ | 0.11 | |||||||||
The Company recognized a $1.9 million loss for the sale of its entire portfolio of auction rate securities during the three months ended December 31, 2013. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | (13) Subsequent Event |
On February 11, 2015, the Company announced a reduction in its workforce of approximately 4% of its employees across various geographies and functions, in order to reallocate investment in 2015 to planned sales expansion and to delivery areas seeing the greatest client demand. Overall the Company expects to increase its headcount by 7% at the end of 2015 compared to 2014 levels. The Company expects to incur pre-tax expenses of $3.5 million to $4.0 million in the first and second quarters of 2015 related principally to cash severance and related benefit costs for terminated employees. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation | ||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||
Forrester Research, Inc. (“Forrester” or “the Company”) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester’s products and services are targeted to specific roles, including senior management in business strategy, marketing, and technology management principally at $1 billion-plus revenue companies who collaborate with Forrester to accelerate achievement of their business goals. The accompanying consolidated financial statements include the accounts of Forrester and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||||||||||||||
Management Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Forrester considers the more significant of these estimates to be revenue recognition, stock-based compensation, non-marketable investments, goodwill and intangible assets, and income taxes. On an ongoing basis, management evaluates its estimates. Actual results could differ from these estimates. | |||||||||||||||||||||||||
Out-of-Period Errors | |||||||||||||||||||||||||
During 2014 the Company recorded $0.3 million of pre-tax expenses ($0.2 million post tax) for out-of-period corrections, of which $0.4 million related to depreciation and $(0.1) million related to other immaterial amounts that related to prior periods. In addition, during 2014 the Company recorded $0.5 million of additional income tax expense for an out-of-period correction. The Company has concluded that these items are immaterial to all current and prior period financial statements. | |||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||
The Company has certain financial assets recorded at fair value which 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 carrying amounts reflected in the Consolidated Balance Sheets for cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. | |||||||||||||||||||||||||
Cash, Cash Equivalents, and Marketable Investments | Cash, Cash Equivalents, and Marketable Investments | ||||||||||||||||||||||||
Forrester considers all short-term, highly liquid investments with original maturities at the time of purchase of 90 days or less to be cash equivalents. | |||||||||||||||||||||||||
The Company’s portfolio of investments may at any time include securities of U.S. government agencies, municipal notes, corporate notes and bonds, and money market funds. Forrester accounts for all marketable investments as available-for-sale securities and as such, the marketable investments are carried at fair value, with unrealized gains and losses (not related to credit losses) recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Realized gains and losses on securities are included in earnings and are determined using the specific identification method. The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required under current accounting standards. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive income (loss). The determination of whether a loss is considered temporary is based in part on whether the Company intends to sell the security or whether the Company would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. During the years ended December 31, 2014, 2013 and 2012, the Company did not record any other-than-temporary impairment charges on its available-for-sale securities. | |||||||||||||||||||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk | ||||||||||||||||||||||||
Forrester has no significant off-balance sheet or concentration of credit risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially subject Forrester to concentrations of credit risk are principally cash, cash equivalents, marketable investments, and accounts receivable. Forrester places its investments in highly rated securities. No single customer accounted for greater than 3% of revenues or accounts receivable in any of the periods presented. | |||||||||||||||||||||||||
Deferred Commissions | Deferred Commissions | ||||||||||||||||||||||||
Commissions incurred in acquiring new or renewing existing contracts, which are earned in the month that a contract is booked, are deferred and expensed to operations as the related revenue is recognized. Forrester evaluates the recoverability of deferred commissions at each balance sheet date. | |||||||||||||||||||||||||
Goodwill | Goodwill | ||||||||||||||||||||||||
Goodwill is not amortized; however, it is required to be tested for impairment annually. Furthermore, testing for impairment is required on an interim basis if an event or circumstance indicates that it is more likely than not an impairment loss has been incurred. An impairment loss would be recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. Absent an event that indicates a specific impairment may exist, the Company has selected November 30 as the date for performing the annual goodwill impairment test. Goodwill impairment charges have not been required for the years ended December 31, 2014, 2013 and 2012. In connection with the Company’s new organizational structure, goodwill was allocated to its new reporting units (which are the Company’s three business segments) on a relative fair value basis. The Company performed an interim quantitative impairment test and concluded that there was no indication of impairment. | |||||||||||||||||||||||||
Impairment of Other Long-Lived Tangible and Intangible Assets | Impairment of Other Long-Lived Tangible and Intangible Assets | ||||||||||||||||||||||||
Forrester continually evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of long-lived assets and intangible assets may warrant revision or if events or circumstances indicate that the carrying value of these assets may be impaired. To compute whether assets have been impaired, the estimated undiscounted future cash flows for the estimated remaining useful life of the assets are compared to the carrying value. To the extent that the future cash flows are less than the carrying value, the assets are written down to the estimated fair value of the asset. Impairment charges have not been required for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
Non-Current Liabilities | Non-Current Liabilities | ||||||||||||||||||||||||
The Company records certain liabilities that are expected to be settled over a period that exceeds one year as non-current liabilities. The Company also records as a non-current liability the portion of the deferred rent liability that is expected to be recognized over a period greater than one year. Non-current deferred rent liability at December 31, 2014 and 2013 was $6.5 million and $6.7 million, respectively, and primarily results from the difference between cash payments and the straight-line recognition of rent expense under the Company’s facility leases. | |||||||||||||||||||||||||
Foreign Currency | Foreign Currency | ||||||||||||||||||||||||
The functional currency of the majority of Forrester’s wholly-owned subsidiaries is their respective local currency. These subsidiary financial statements are translated to U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates during the corresponding period for revenues and expenses, with translation gains and losses accumulated as a component of accumulated other comprehensive income (loss). Gains and losses related to the remeasurement of monetary assets and liabilities denominated in a currency other than an entity’s functional currency are included in other income, net in the Consolidated Statements of Income. For the years ended December 31, 2014, 2013 and 2012, Forrester recorded $0.1 million, $0.4 million and $0.4 million of foreign exchange losses, respectively, in other income, net. | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss) are as follows (in thousands): | |||||||||||||||||||||||||
Net Unrealized | Cumulative | Total | |||||||||||||||||||||||
Gain (Loss) | Translation | Accumulated | |||||||||||||||||||||||
on Marketable | Adjustment | Other | |||||||||||||||||||||||
Investments | Comprehensive | ||||||||||||||||||||||||
Income (Loss) | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | (1,021 | ) | $ | (5,807 | ) | $ | (6,828 | ) | ||||||||||||||||
Foreign currency translation | — | 7,419 | 7,419 | ||||||||||||||||||||||
Unrealized gain on investments before reclassification, net of tax of $7 | 14 | — | 14 | ||||||||||||||||||||||
Reclassification adjustment for net gains realized in net income, net of tax of $12 | (17 | ) | — | (17 | ) | ||||||||||||||||||||
Balance at December 31, 2012 | (1,024 | ) | 1,612 | 588 | |||||||||||||||||||||
Foreign currency translation | — | 826 | 826 | ||||||||||||||||||||||
Unrealized loss on investments before reclassification, net of tax of $41 | (111 | ) | — | (111 | ) | ||||||||||||||||||||
Reclassification adjustment for net losses realized in net income, net of tax of $691 | 1,151 | — | 1,151 | ||||||||||||||||||||||
Balance at December 31, 2013 | 16 | 2,438 | 2,454 | ||||||||||||||||||||||
Foreign currency translation | — | (3,977 | ) | (3,977 | ) | ||||||||||||||||||||
Unrealized loss on investments before reclassification, net of tax of $47 | (84 | ) | — | (84 | ) | ||||||||||||||||||||
Reclassification adjustment for net gains realized in net income, net of tax of $8 | (6 | ) | — | (6 | ) | ||||||||||||||||||||
Balance at December 31, 2014 | $ | (74 | ) | $ | (1,539 | ) | $ | (1,613 | ) | ||||||||||||||||
Reclassification adjustments for net gains (losses) are reported in gains (losses) on investments, net in the Consolidated Statements of Income. | |||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||||||||||
Forrester generates revenues from licensing research (including our data subscription products), performing advisory services and consulting projects and hosting events. Forrester executes contracts that govern the terms and conditions of each arrangement. Revenues are recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, services have been provided to the customer, and collectability is reasonably assured. Revenues are presented net of any sales or value added taxes that are collected from customers and remitted to the government. Revenue contracts may include either a single product or service or a combination of multiple products and services. Revenues from contracts that contain multiple products and services are allocated among the separate units of accounting based on their relative selling prices; however, the amount recognized is limited to the amount that is not contingent on future performance conditions. The Company obtains the selling prices of its products and services based on an analysis of standalone sales of these products and services during the year. Research services revenues are recognized ratably over the term of the contract. Advisory services revenues, such as workshops, speeches and advisory days, are recognized when the customer receives the agreed upon deliverable and consulting project revenues, which are short-term in nature and based upon fixed-fee agreements, are recognized as the services are provided. Reimbursed out-of-pocket expenses are recorded as advisory services revenue. Event revenues are recognized upon completion of the event. | |||||||||||||||||||||||||
Annual subscriptions to our RoleView research include access to all or a designated portion of our research, and depending on the type of license, membership in one or more of our Forrester leadership boards, unlimited phone or email analyst inquiry, unlimited participation in Forrester Webinars, and the right to attend one event. Contracts for RoleView are accounted for as two units of accounting: 1) the event ticket and 2) the remaining research services that are delivered throughout the contract period. Arrangement consideration is allocated to each of these elements based upon their relative selling prices, which is based on standalone sales of event tickets and the estimated selling price of the remaining research services. Annual subscriptions to our data subscription products include access to designated survey data products and access to a data advisor, which are delivered throughout the year, and are accounted for as one unit of accounting and recognized ratably as research services revenue over the membership period. For all contracts entered into through January 2013, clients were offered a service guarantee, which gave them the right to cancel their contracts prior to the end of the contract term and receive a refund for unused products or services. As of February 1, 2013 the Company discontinued its policy of offering all clients a service guarantee. | |||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||||||||||||
The Company recognizes the fair value of stock-based compensation expense over the requisite service period of the individual grantee, which generally equals the vesting period. Cash flows resulting from the tax benefits of tax deductions in excess of the compensation expense recognized for stock-based awards are classified as financing cash flows. The Company is required to estimate future forfeitures of stock-based awards for recognition of compensation expense. The Company will record additional expense if the actual forfeitures are lower than estimated and will record a recovery of prior recognized expense if the actual forfeitures are higher than estimated. The actual expense recognized over the vesting period will only be for those awards that vest. Stock-based compensation expense was recorded in the following expense categories (in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cost of services and fulfillment | $ | 4,316 | $ | 3,585 | $ | 3,085 | |||||||||||||||||||
Selling and marketing | 1,132 | 1,136 | 894 | ||||||||||||||||||||||
General and administrative | 1,996 | 1,330 | 1,418 | ||||||||||||||||||||||
Total | $ | 7,444 | $ | 6,051 | $ | 5,397 | |||||||||||||||||||
The options granted under the equity incentive plan and shares subject to the employee stock purchase plan were valued utilizing the Black Scholes model using the following assumptions and had the following fair values: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Equity Incentive | Employee Stock | Equity Incentive | Employee Stock | Equity Incentive | Employee Stock | ||||||||||||||||||||
Plans | Purchase Plan | Plans | Purchase Plan | Plans | Purchase Plan | ||||||||||||||||||||
Average risk-free interest rate | 1.69 | % | 0.06 | % | 0.85 | % | 0.12 | % | 0.85 | % | 0.14 | % | |||||||||||||
Expected dividend yield | 1.8 | % | 2 | % | 2.1 | % | 1.9 | % | 1.7 | % | 1.7 | % | |||||||||||||
Expected life | 5.1 Years | 0.5 Years | 4.9 Years | 0.5 Years | 4.5 Years | 0.5 Years | |||||||||||||||||||
Expected volatility | 26 | % | 24 | % | 36 | % | 22 | % | 40 | % | 31 | % | |||||||||||||
Weighted average fair value | $ | 7.91 | $ | 7.32 | $ | 9.21 | $ | 6.02 | $ | 9.64 | $ | 6.9 | |||||||||||||
Dividend yields are based on the initiation of a regular quarterly dividend program approved by the board of directors in February 2012. Expected volatility is based, in part, on the historical volatility of Forrester’s common stock as well as management’s expectations of future volatility over the expected term of the awards granted. The risk-free interest rate used is based on the U.S. Treasury Constant Maturity rate with an equivalent remaining term. Where the expected term of a stock-based award does not correspond with a term for which the interest rates are quoted, Forrester uses the rate with the maturity closest to the award’s expected term. The expected term calculation is based upon Forrester’s historical experience of exercise patterns. The unamortized fair value of stock-based awards as of December 31, 2014 was $15.8 million, with a weighted average remaining recognition period of 2.5 years. | |||||||||||||||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||||||||||||||||||||||
Forrester maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make contractually obligated payments. When evaluating the adequacy of the allowance for doubtful accounts, the Company makes judgments regarding the collectability of accounts receivable by specifically analyzing historical bad debts, customer concentrations, current economic trends, and changes in the customer payment terms. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required and if the financial condition of the Company’s customers were to improve, the allowances may be reduced accordingly. | |||||||||||||||||||||||||
Depreciation and Amortization | Depreciation and Amortization | ||||||||||||||||||||||||
Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over estimated useful lives of assets as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||
Computers and equipment | 3 to 10 Years | ||||||||||||||||||||||||
Computer software | 3 to 5 Years | ||||||||||||||||||||||||
Furniture and fixtures | 7 Years | ||||||||||||||||||||||||
Leasehold improvements | Shorter of asset life or lease term | ||||||||||||||||||||||||
Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over the respective lives as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||
Customer relationships | 5 to 11 Years | ||||||||||||||||||||||||
Research content | 1 to 2 Years | ||||||||||||||||||||||||
Technology | 7 Years | ||||||||||||||||||||||||
Trademarks | 1 Year | ||||||||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||||||||
Forrester recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statements and tax basis of assets and liabilities as well as operating loss carryforwards. | |||||||||||||||||||||||||
Forrester’s provision for income taxes is composed of a current and a deferred provision for federal, state and foreign jurisdictions. The current provision is calculated as the estimated taxes payable or refundable on tax returns for the current year. The deferred income tax provision is calculated as the net change during the year in deferred tax assets and liabilities. Valuation allowances are provided if based on the weight of available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized. | |||||||||||||||||||||||||
Forrester accounts for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates these tax positions on a quarterly basis. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||||||||||||||||||
Net Income Per Common Share | Net Income Per Common Share | ||||||||||||||||||||||||
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 stock equivalents consist of common stock issuable upon the exercise of outstanding stock options and restricted stock units. | |||||||||||||||||||||||||
Basic and diluted weighted average common shares are as follows (in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 18,713 | 20,861 | 22,500 | ||||||||||||||||||||||
Weighted average common equivalent shares | 294 | 492 | 429 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding | 19,007 | 21,353 | 22,929 | ||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, options to purchase approximately 0.6 million, 0.7 million and 0.8 million shares, respectively, were outstanding but not included in the diluted weighted average common share calculation as the effect would have been anti-dilutive. | |||||||||||||||||||||||||
New Accounting Pronouncements | New Accounting Pronouncements | ||||||||||||||||||||||||
In May 2014, the 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 new standard will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. For Forrester, the standard will be effective in the first quarter of 2017. 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 not yet selected a transition method. The Company is currently evaluating the potential changes from this ASU to its future financial reporting and disclosures. | |||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard addresses the balance sheet presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The standard requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The adoption of this ASU as of January 1, 2014 did not have a material effect on the Company’s financial position. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows (in thousands): | ||||||||||||||||||||||||
Net Unrealized | Cumulative | Total | |||||||||||||||||||||||
Gain (Loss) | Translation | Accumulated | |||||||||||||||||||||||
on Marketable | Adjustment | Other | |||||||||||||||||||||||
Investments | Comprehensive | ||||||||||||||||||||||||
Income (Loss) | |||||||||||||||||||||||||
Balance at December 31, 2011 | $ | (1,021 | ) | $ | (5,807 | ) | $ | (6,828 | ) | ||||||||||||||||
Foreign currency translation | — | 7,419 | 7,419 | ||||||||||||||||||||||
Unrealized gain on investments before reclassification, net of tax of $7 | 14 | — | 14 | ||||||||||||||||||||||
Reclassification adjustment for net gains realized in net income, net of tax of $12 | (17 | ) | — | (17 | ) | ||||||||||||||||||||
Balance at December 31, 2012 | (1,024 | ) | 1,612 | 588 | |||||||||||||||||||||
Foreign currency translation | — | 826 | 826 | ||||||||||||||||||||||
Unrealized loss on investments before reclassification, net of tax of $41 | (111 | ) | — | (111 | ) | ||||||||||||||||||||
Reclassification adjustment for net losses realized in net income, net of tax of $691 | 1,151 | — | 1,151 | ||||||||||||||||||||||
Balance at December 31, 2013 | 16 | 2,438 | 2,454 | ||||||||||||||||||||||
Foreign currency translation | — | (3,977 | ) | (3,977 | ) | ||||||||||||||||||||
Unrealized loss on investments before reclassification, net of tax of $47 | (84 | ) | — | (84 | ) | ||||||||||||||||||||
Reclassification adjustment for net gains realized in net income, net of tax of $8 | (6 | ) | — | (6 | ) | ||||||||||||||||||||
Balance at December 31, 2014 | $ | (74 | ) | $ | (1,539 | ) | $ | (1,613 | ) | ||||||||||||||||
Summary of Stock-Based Compensation Expense Recorded in Expense Categories | Stock-based compensation expense was recorded in the following expense categories (in thousands): | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cost of services and fulfillment | $ | 4,316 | $ | 3,585 | $ | 3,085 | |||||||||||||||||||
Selling and marketing | 1,132 | 1,136 | 894 | ||||||||||||||||||||||
General and administrative | 1,996 | 1,330 | 1,418 | ||||||||||||||||||||||
Total | $ | 7,444 | $ | 6,051 | $ | 5,397 | |||||||||||||||||||
Options Granted Under Equity Incentive Plans and Shares Subject to Employee Stock Purchase Plan Valuation Assumptions | The options granted under the equity incentive plan and shares subject to the employee stock purchase plan were valued utilizing the Black Scholes model using the following assumptions and had the following fair values: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Equity Incentive | Employee Stock | Equity Incentive | Employee Stock | Equity Incentive | Employee Stock | ||||||||||||||||||||
Plans | Purchase Plan | Plans | Purchase Plan | Plans | Purchase Plan | ||||||||||||||||||||
Average risk-free interest rate | 1.69 | % | 0.06 | % | 0.85 | % | 0.12 | % | 0.85 | % | 0.14 | % | |||||||||||||
Expected dividend yield | 1.8 | % | 2 | % | 2.1 | % | 1.9 | % | 1.7 | % | 1.7 | % | |||||||||||||
Expected life | 5.1 Years | 0.5 Years | 4.9 Years | 0.5 Years | 4.5 Years | 0.5 Years | |||||||||||||||||||
Expected volatility | 26 | % | 24 | % | 36 | % | 22 | % | 40 | % | 31 | % | |||||||||||||
Weighted average fair value | $ | 7.91 | $ | 7.32 | $ | 9.21 | $ | 6.02 | $ | 9.64 | $ | 6.9 | |||||||||||||
Depreciation and Amortization of Property and Equipment, Useful Life | Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over estimated useful lives of assets as follows: | ||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||
Computers and equipment | 3 to 10 Years | ||||||||||||||||||||||||
Computer software | 3 to 5 Years | ||||||||||||||||||||||||
Furniture and fixtures | 7 Years | ||||||||||||||||||||||||
Leasehold improvements | Shorter of asset life or lease term | ||||||||||||||||||||||||
Amortization of Intangible Assets, Useful Life | Forrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over the respective lives as follows: | ||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||
Customer relationships | 5 to 11 Years | ||||||||||||||||||||||||
Research content | 1 to 2 Years | ||||||||||||||||||||||||
Technology | 7 Years | ||||||||||||||||||||||||
Trademarks | 1 Year | ||||||||||||||||||||||||
Summary of Basic and Diluted Weighted Average Common Shares | Basic and diluted weighted average common shares are as follows (in thousands): | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 18,713 | 20,861 | 22,500 | ||||||||||||||||||||||
Weighted average common equivalent shares | 294 | 492 | 429 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding | 19,007 | 21,353 | 22,929 | ||||||||||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Summary of Goodwill by Segment and Changes in Carrying Amount of Goodwill | A summary of the goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands). | ||||||||||||||||
BT | M&S | Events | Total | ||||||||||||||
Balance, December 31, 2012 | $ | 43,491 | $ | 33,362 | $ | 2,101 | $ | 78,954 | |||||||||
Translation adjustments | 577 | 442 | 28 | 1,047 | |||||||||||||
Balance, December 31, 2013 | $ | 44,068 | $ | 33,804 | $ | 2,129 | $ | 80,001 | |||||||||
Products | Research | Project | Total | ||||||||||||||
Consulting | |||||||||||||||||
Balance, January 1, 2014 | $ | 2,560 | $ | 77,441 | $ | — | $ | 80,001 | |||||||||
Translation adjustments | (106 | ) | (3,212 | ) | — | (3,318 | ) | ||||||||||
Balance, December 31, 2014 | $ | 2,454 | $ | 74,229 | $ | — | $ | 76,683 | |||||||||
Summary of Intangible Assets | A summary of Forrester’s intangible assets is as follows (in thousands): | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | ||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Customer relationships | $ | 32,995 | $ | 29,613 | $ | 3,382 | |||||||||||
Research content | 4,699 | 4,699 | — | ||||||||||||||
Technology | 1,507 | 1,507 | — | ||||||||||||||
Trademarks | 73 | 73 | — | ||||||||||||||
Total | $ | 39,274 | $ | 35,892 | $ | 3,382 | |||||||||||
December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | ||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Customer relationships | $ | 33,927 | $ | 28,552 | $ | 5,375 | |||||||||||
Research content | 4,699 | 4,699 | — | ||||||||||||||
Technology | 1,507 | 1,105 | 402 | ||||||||||||||
Trademarks | 73 | 73 | — | ||||||||||||||
Total | $ | 40,206 | $ | 34,429 | $ | 5,777 | |||||||||||
Estimated Amortization Expense Related to Intangible Assets | Estimated amortization expense related to intangible assets that will continue to be amortized is as follows (in thousands): | ||||||||||||||||
Year ending December 31, 2015 | $ | 927 | |||||||||||||||
Year ending December 31, 2016 | 872 | ||||||||||||||||
Year ending December 31, 2017 | 822 | ||||||||||||||||
Year ending December 31, 2018 | 761 | ||||||||||||||||
Total | $ | 3,382 | |||||||||||||||
Marketable_Investments_Tables
Marketable Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Summary of Company's Marketable Investments | The following table summarizes the Company’s marketable investments, all of which are classified as available-for-sale (in thousands): | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Federal agency and corporate obligations | $ | 55,005 | $ | 13 | $ | (133 | ) | $ | 54,885 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Amortized | Gross | Gross | Market | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
State and municipal obligations | $ | 6,809 | $ | 5 | $ | — | $ | 6,814 | |||||||||
Federal agency and corporate obligations | 74,179 | 112 | (92 | ) | 74,199 | ||||||||||||
Total | $ | 80,988 | $ | 117 | $ | (92 | ) | $ | 81,013 | ||||||||
Summary of Maturity Periods of Marketable Securities | The following table summarizes the maturity periods of the marketable securities in the Company’s portfolio as of December 31, 2014. | ||||||||||||||||
FY 2015 | FY2016 | FY2017 | Total | ||||||||||||||
Federal agency and corporate obligations | $ | 21,076 | $ | 16,109 | $ | 17,700 | $ | 54,885 | |||||||||
Summary of Gross Unrealized Losses and Market Value of Available-for-Sale Securities with Unrealized Losses | The following table shows the gross unrealized losses and market value of Forrester’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 December 31, 2014 | |||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||
Market | Unrealized | Market | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | ||||||||||||||
Federal agency and corporate obligations | $ | 38,175 | $ | 133 | $ | — | $ | — | |||||||||
As of December 31, 2013 | |||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||
Market | Unrealized | Market | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | ||||||||||||||
Federal agency and corporate obligations | $ | 30,645 | $ | 92 | $ | — | $ | — | |||||||||
Summary of Company's Fair Value Hierarchy for its Financial Assets | The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and marketable investments) measured at fair value on a recurring basis (in thousands): | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds (1) | $ | 1,794 | $ | — | $ | — | $ | 1,794 | |||||||||
Federal agency and corporate obligations | — | 54,885 | — | 54,885 | |||||||||||||
Total | $ | 1,794 | $ | 54,885 | $ | — | $ | 56,679 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds (1) | $ | 6,897 | $ | — | $ | — | $ | 6,897 | |||||||||
State and municipal obligations | — | 6,814 | — | 6,814 | |||||||||||||
Federal agency and corporate obligations (2) | — | 80,449 | — | 80,449 | |||||||||||||
Total | $ | 6,897 | $ | 87,263 | $ | — | $ | 94,160 | |||||||||
-1 | Included in cash and cash equivalents. | ||||||||||||||||
-2 | $6.2 million included in cash and cash equivalents at December 31, 2013 as original maturities at the time of purchase were 90 days or less. | ||||||||||||||||
Summary of Changes in Fair Value of Level 3 Financial Assets | The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets for the year ended December 31, 2013 (in thousands): | ||||||||||||||||
ARS | |||||||||||||||||
Balance at December 31, 2012 | $ | 8,970 | |||||||||||||||
Sales | (9,108 | ) | |||||||||||||||
Gains included in other comprehensive income | 138 | ||||||||||||||||
Losses transferred out of other comprehensive loss | 1,892 | ||||||||||||||||
Losses included in earnings | (1,892 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Before Income Taxes | Income before income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 12,939 | $ | 13,557 | $ | 24,124 | |||||||
Foreign | 5,450 | 6,435 | 8,030 | ||||||||||
Total | $ | 18,389 | $ | 19,992 | $ | 32,154 | |||||||
Components of the Income Tax Provision (benefit) | The components of the income tax provision (benefit) for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 11,644 | $ | 8,286 | $ | 12,420 | |||||||
State | 2,239 | 1,624 | 3,069 | ||||||||||
Foreign | 1,167 | 1,587 | 1,336 | ||||||||||
Total current | 15,050 | 11,497 | 16,825 | ||||||||||
Deferred: | |||||||||||||
Federal | (6,470 | ) | (3,935 | ) | (4,449 | ) | |||||||
State | (1,095 | ) | (562 | ) | (736 | ) | |||||||
Foreign | 39 | (32 | ) | (5,782 | ) | ||||||||
Total deferred | (7,526 | ) | (4,529 | ) | (10,967 | ) | |||||||
Income tax provision | $ | 7,524 | $ | 6,968 | $ | 5,858 | |||||||
Reconciliation of the Federal Statutory Rate | A reconciliation of the federal statutory rate to Forrester’s effective tax rate for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (decrease) in tax resulting from: | |||||||||||||
State tax provision, net of federal benefit | 4.2 | 3.4 | 4.9 | ||||||||||
Foreign tax rate differential | (3.2 | ) | (4.9 | ) | (2.7 | ) | |||||||
Stock option compensation deduction | 2.6 | 2 | 0.7 | ||||||||||
Non-deductible expenses | 1.1 | 2.4 | 0.6 | ||||||||||
Change in valuation allowance | (1.0 | ) | 0.5 | (0.8 | ) | ||||||||
Foreign tax credits | — | (3.7 | ) | (0.9 | ) | ||||||||
Benefit upon audit settlement | — | — | (21.1 | ) | |||||||||
Out-of-period adjustment | 2.5 | — | — | ||||||||||
Other, net | (0.3 | ) | 0.2 | 2.5 | |||||||||
Effective tax rate | 40.9 | % | 34.9 | % | 18.2 | % | |||||||
Components of Deferred Income Taxes | The components of deferred income taxes as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Non-deductible reserves and accruals | $ | 10,164 | $ | 7,239 | |||||||||
Stock compensation | 5,086 | 4,539 | |||||||||||
Other assets | 838 | — | |||||||||||
Net operating loss and other carryforwards | 9,070 | 10,830 | |||||||||||
Gross deferred tax asset | 25,158 | 22,608 | |||||||||||
Less—valuation allowance | (1,565 | ) | (2,200 | ) | |||||||||
Sub-total | 23,593 | 20,408 | |||||||||||
Depreciation and amortization | (799 | ) | (2,945 | ) | |||||||||
Goodwill amortization | (5,224 | ) | (5,401 | ) | |||||||||
Other liabilities | — | (2,134 | ) | ||||||||||
Deferred commissions | (5,399 | ) | (5,080 | ) | |||||||||
Net deferred tax asset | $ | 12,171 | $ | 4,848 | |||||||||
Summary of Changes in Deferred Tax Valuation Allowance | The following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Deferred tax valuation allowance at January 1 | $ | 2,200 | $ | 2,086 | $ | 3,077 | |||||||
Additions | 17 | 801 | 11 | ||||||||||
Deductions | (574 | ) | (712 | ) | (1,066 | ) | |||||||
Translation adjustments | (78 | ) | 25 | 64 | |||||||||
Deferred tax valuation allowance at December 31 | $ | 1,565 | $ | 2,200 | $ | 2,086 | |||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is summarized as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits at January 1 | $ | 2,012 | $ | 1,844 | $ | 1,269 | |||||||
Additions for tax positions of prior years | 6 | 414 | 112 | ||||||||||
Reductions for tax positions of prior years | — | (256 | ) | (37 | ) | ||||||||
Additions for tax positions of current year | 121 | 19 | 1,444 | ||||||||||
Settlements | — | — | (582 | ) | |||||||||
Lapse of statute of limitations | — | — | (360 | ) | |||||||||
Translation adjustments | (3 | ) | (9 | ) | (2 | ) | |||||||
Unrecognized tax benefits at December 31 | $ | 2,136 | $ | 2,012 | $ | 1,844 | |||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Contractual Obligations for Operating Leases | As of December 31, 2014, Forrester had future contractual obligations as follows for operating leases (in thousands): | ||||
2015 | $ | 10,628 | |||
2016 | 9,503 | ||||
2017 | 9,347 | ||||
2018 | 9,104 | ||||
2019 | 8,843 | ||||
Thereafter | 50,792 | ||||
Total minimum lease payments | $ | 98,217 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Summary of Stock Option Activity | Stock option activity for the year ended December 31, 2014 is presented below (in thousands, except per share data and contractual term): | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price Per | Contractual | ||||||||||||||||
Share | Term (in years) | ||||||||||||||||
Outstanding at December 31, 2013 | 1,734 | $ | 31.85 | ||||||||||||||
Granted | 550 | 38.2 | |||||||||||||||
Exercised | (255 | ) | 29.67 | ||||||||||||||
Forfeited | (75 | ) | 34.82 | ||||||||||||||
Outstanding at December 31, 2014 | 1,954 | $ | 33.81 | 7.11 | $ | 10,870 | |||||||||||
Exercisable at December 31, 2014 | 852 | $ | 30.46 | 5.03 | $ | 7,582 | |||||||||||
Vested and expected to vest at December 31, 2014 | 1,837 | $ | 33.61 | 6.99 | $ | 10,587 | |||||||||||
Details of Restricted Stock Unit Activity | RSU activity for the year ended December 31, 2014 is presented below (in thousands, except per share data): | ||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant | |||||||||||||||||
Date Fair | |||||||||||||||||
Value | |||||||||||||||||
Unvested at December 31, 2013 | 372 | $ | 34.14 | ||||||||||||||
Granted | 235 | 36.67 | |||||||||||||||
Vested | (96 | ) | 33.99 | ||||||||||||||
Forfeited | (78 | ) | 33.61 | ||||||||||||||
Unvested at December 31, 2014 | 433 | $ | 35.64 | ||||||||||||||
Summary of Shares Purchased by Employees Under the Stock Purchase Plan | Shares purchased by employees under the Stock Purchase Plan are as follows (in thousands, except per share data): | ||||||||||||||||
Shares | Purchase | ||||||||||||||||
Purchase Period Ended | Purchased | Price | |||||||||||||||
28-Feb-14 | 23 | $ | 27.83 | ||||||||||||||
31-Aug-14 | 21 | $ | 30.55 | ||||||||||||||
28-Feb-13 | 26 | $ | 23.34 | ||||||||||||||
31-Aug-13 | 27 | $ | 23.42 |
Reorganization_Tables
Reorganization (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | |||||
Summary of Roll Forward of Activity in Reorganization Accrual | The activity related to the reorganization accrual during the years ended December 31, 2014 and 2013 is as follows (in thousands): | ||||
Workforce | |||||
Reduction | |||||
Accrual at December 31, 2012 | $ | 14 | |||
Additions | 1,905 | ||||
Cash payments | (1,798 | ) | |||
Accrual at December 31, 2013 | 121 | ||||
Additions | 1,817 | ||||
Cash payments | (1,820 | ) | |||
Accrual at December 31, 2014 | $ | 118 | |||
Operating_Segment_and_Enterpri1
Operating Segment and Enterprise Wide Reporting (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Summary of Information about Reportable Segments | The following tables present information about reportable segments (in thousands): | ||||||||||||||||
Products | Research | Project | Consolidated | ||||||||||||||
Consulting | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Research services revenues | $ | 207,517 | $ | — | $ | — | $ | 207,517 | |||||||||
Advisory services and events revenues | 20,759 | 48,658 | 35,128 | 104,545 | |||||||||||||
Total segment revenues | 228,276 | 48,658 | 35,128 | 312,062 | |||||||||||||
Segment expenses | 39,466 | 53,307 | 27,236 | 120,009 | |||||||||||||
Contribution margin (loss) | 188,810 | (4,649 | ) | 7,892 | 192,053 | ||||||||||||
Selling, marketing, administrative and other expenses | (169,852 | ) | |||||||||||||||
Amortization of intangible assets | (2,171 | ) | |||||||||||||||
Reorganization costs | (1,817 | ) | |||||||||||||||
Other income and gains (losses) on investments | 176 | ||||||||||||||||
Income before income taxes | $ | 18,389 | |||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Research services revenues | $ | 202,843 | $ | — | $ | — | $ | 202,843 | |||||||||
Advisory services and events revenues | 19,376 | 57,865 | 17,566 | 94,807 | |||||||||||||
Total segment revenues | 222,219 | 57,865 | 17,566 | 297,650 | |||||||||||||
Segment expenses | 36,384 | 58,685 | 15,700 | 110,769 | |||||||||||||
Contribution margin (loss) | 185,835 | (820 | ) | 1,866 | 186,881 | ||||||||||||
Selling, marketing, administrative and other expenses | (160,913 | ) | |||||||||||||||
Amortization of intangible assets | (2,230 | ) | |||||||||||||||
Reorganization costs | (1,905 | ) | |||||||||||||||
Other income and gains (losses) on investments | (1,841 | ) | |||||||||||||||
Income before income taxes | $ | 19,992 | |||||||||||||||
Products | Research | Project | Consolidated | ||||||||||||||
Consulting | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Research services revenues | $ | 203,091 | $ | — | $ | — | $ | 203,091 | |||||||||
Advisory services and events revenues | 17,905 | 56,928 | 15,107 | 89,940 | |||||||||||||
Total segment revenues | 220,996 | 56,928 | 15,107 | 293,031 | |||||||||||||
Segment expenses | 36,468 | 57,440 | 13,109 | 107,017 | |||||||||||||
Contribution margin (loss) | 184,528 | (512 | ) | 1,998 | 186,014 | ||||||||||||
Selling, marketing, administrative and other expenses | (151,388 | ) | |||||||||||||||
Amortization of intangible assets | (2,445 | ) | |||||||||||||||
Reorganization costs | (1,421 | ) | |||||||||||||||
Other income and gains (losses) on investments | 1,394 | ||||||||||||||||
Income before income taxes | $ | 32,154 | |||||||||||||||
Schedule of Net Long-lived Tangible Assets by Location | Net long-lived tangible assets by location as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 28,558 | $ | 35,167 | |||||||||||||
United Kingdom | 1,625 | 2,212 | |||||||||||||||
Europe (excluding United Kingdom) | 329 | 174 | |||||||||||||||
Other | 1,662 | 2,315 | |||||||||||||||
$ | 32,174 | $ | 39,868 | ||||||||||||||
Schedule of Net Revenues by Geographic Destination and as a Percentage of Total Revenues | Net revenues by geographic destination and as a percentage of total revenues for the years ended December 31, 2014, 2013, and 2012 are as follows (in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
United States | $ | 232,440 | $ | 218,900 | $ | 211,211 | |||||||||||
Europe (excluding United Kingdom) | 30,257 | 30,956 | 33,146 | ||||||||||||||
United Kingdom | 16,804 | 16,293 | 16,555 | ||||||||||||||
Canada | 17,089 | 16,995 | 16,742 | ||||||||||||||
Other | 15,472 | 14,506 | 15,377 | ||||||||||||||
$ | 312,062 | $ | 297,650 | $ | 293,031 | ||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
United States | 74 | % | 74 | % | 72 | % | |||||||||||
Europe (excluding United Kingdom) | 10 | % | 10 | % | 11 | % | |||||||||||
United Kingdom | 5 | % | 5 | % | 6 | % | |||||||||||
Canada | 6 | % | 6 | % | 6 | % | |||||||||||
Other | 5 | % | 5 | % | 5 | % | |||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||
Certain_Balance_Sheet_Accounts1
Certain Balance Sheet Accounts (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Summary of Property and Equipment | Property and equipment as of December 31, 2014 and 2013 is recorded at cost less accumulated depreciation and consists of the following (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Computers and equipment | $ | 17,785 | $ | 18,446 | |||||||||
Computer software | 22,399 | 22,315 | |||||||||||
Furniture and fixtures | 8,627 | 8,902 | |||||||||||
Leasehold improvements | 25,815 | 26,029 | |||||||||||
Total property and equipment | 74,626 | 75,692 | |||||||||||
Less accumulated depreciation | 42,452 | 35,824 | |||||||||||
$ | 32,174 | $ | 39,868 | ||||||||||
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2014 and 2013 consist of the following (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Payroll and related benefits | $ | 24,038 | $ | 20,635 | |||||||||
Taxes | 2,050 | 2,692 | |||||||||||
Other | 10,129 | 10,144 | |||||||||||
$ | 36,217 | $ | 33,471 | ||||||||||
Summary of Non-current Liabilities | Non-current liabilities as of December 31, 2014 and 2013 consist of the following (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liability | $ | 97 | $ | 852 | |||||||||
Deferred rent | 6,501 | 6,678 | |||||||||||
Other | 2,810 | 2,612 | |||||||||||
$ | 9,408 | $ | 10,142 | ||||||||||
Summary of Allowance for Doubtful Accounts | A roll-forward of the allowance for doubtful accounts as of and for the years ended December 31, 2014, 2013, and 2012 is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 254 | $ | 404 | $ | 326 | |||||||
Provision for doubtful accounts | 320 | 189 | 708 | ||||||||||
Write-offs | (386 | ) | (339 | ) | (630 | ) | |||||||
Balance, end of year | $ | 188 | $ | 254 | $ | 404 | |||||||
Summary_Selected_Quarterly_Fin1
Summary Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Selected Consolidated Quarterly Financial Data | The following is a summary of selected unaudited consolidated quarterly financial data for the years ended December 31, 2014 and 2013 (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Total revenues | $ | 73,071 | $ | 82,947 | $ | 75,363 | $ | 80,681 | |||||||||
Income from operations | $ | 20 | $ | 7,080 | $ | 4,925 | $ | 6,188 | |||||||||
Net income (loss) | $ | (66 | ) | $ | 4,289 | $ | 3,043 | $ | 3,599 | ||||||||
Basic income per common share | $ | — | $ | 0.23 | $ | 0.17 | $ | 0.2 | |||||||||
Diluted income per common share | $ | — | $ | 0.23 | $ | 0.16 | $ | 0.19 | |||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Total revenues | $ | 71,361 | $ | 78,953 | $ | 69,815 | $ | 77,521 | |||||||||
Income from operations | $ | 3,280 | $ | 9,788 | $ | 4,301 | $ | 4,464 | |||||||||
Net income | $ | 2,169 | $ | 6,185 | $ | 2,509 | $ | 2,161 | |||||||||
Basic income per common share | $ | 0.1 | $ | 0.29 | $ | 0.12 | $ | 0.11 | |||||||||
Diluted income per common share | $ | 0.1 | $ | 0.28 | $ | 0.12 | $ | 0.11 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Customer | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Major customer revenue | 1 billion-plus | ||
Original maturities | 90 days | ||
Number of customers accounted for revenues or accounts receivable greater than 2% of total | 0 | ||
Annual goodwill impairment test, period | 30-Nov | ||
Goodwill impairment charges | $0 | ||
Number of business segment goodwill allocated on a relative fair value basis | 3 | ||
Non-current deferred rent liabilities | 6,501,000 | 6,678,000 | |
Foreign exchange losses | 100,000 | 400,000 | 400,000 |
Unamortized fair value stock based compensation | 15,800,000 | ||
Weighted average remaining recognition period | 2 years 6 months | ||
Pre -Tax Expenses [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Additional income tax expense benefit related to out-of-period correction | 300,000 | ||
Post-Tax Expenses [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Additional income tax expense benefit related to out-of-period correction | 200,000 | ||
Depreciation Expenses [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Additional income tax expense benefit related to out-of-period correction | 400,000 | ||
Other Immaterial Expenses [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Additional income tax expense benefit related to out-of-period correction | -100,000 | ||
Additional Income Tax Expense [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Additional income tax expense benefit related to out-of-period correction | $500,000 | ||
Customer Concentration Risk [Member] | Research Service Revenue [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Customer accounted for percentage | 3.00% | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Customer accounted for percentage | 3.00% | ||
Stock Options [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Anti-dilutive Options to Purchase Shares | 0.6 | 0.7 | 0.8 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $2,454 | $588 | ($6,828) |
Foreign currency translation | -3,977 | 826 | 7,419 |
Unrealized gain (loss) on investments before reclassification, net of tax | -84 | -111 | 14 |
Reclassification adjustment for net gain (losses) realized in net income, net of tax | -6 | 1,151 | -17 |
Ending Balance | -1,613 | 2,454 | 588 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 16 | -1,024 | -1,021 |
Unrealized gain (loss) on investments before reclassification, net of tax | -84 | -111 | 14 |
Reclassification adjustment for net gain (losses) realized in net income, net of tax | -6 | 1,151 | -17 |
Ending Balance | -74 | 16 | -1,024 |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 2,438 | 1,612 | -5,807 |
Foreign currency translation | -3,977 | 826 | 7,419 |
Ending Balance | ($1,539) | $2,438 | $1,612 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||
Tax on Unrealized gain (loss) on investments before reclassification | ($47) | ($41) | $7 |
Tax on Reclassification adjustment for net gain (losses) realized in net income | $8 | ($691) | $12 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Stock-Based Compensation Expense Recorded in Expense Categories (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total allocated share-based compensation expense | $7,444 | $6,051 | $5,397 |
Cost of Services and Fulfillment [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total allocated share-based compensation expense | 4,316 | 3,585 | 3,085 |
Selling and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total allocated share-based compensation expense | 1,132 | 1,136 | 894 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total allocated share-based compensation expense | $1,996 | $1,330 | $1,418 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Options Granted Under Equity Incentive Plans and Shares Subject to Employee Stock Purchase Plan Valuation Assumptions (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Incentive Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 1.69% | 0.85% | 0.85% |
Expected dividend yield | 1.80% | 2.10% | 1.70% |
Expected life | 5 years 1 month 6 days | 4 years 10 months 24 days | 4 years 6 months |
Expected volatility | 26.00% | 36.00% | 40.00% |
Weighted average fair value | $7.91 | $9.21 | $9.64 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 0.06% | 0.12% | 0.14% |
Expected dividend yield | 2.00% | 1.90% | 1.70% |
Expected life | 6 months | 6 months | 6 months |
Expected volatility | 24.00% | 22.00% | 31.00% |
Weighted average fair value | $7.32 | $6.02 | $6.90 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Depreciation and Amortization of Property and Equipment, Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Computers and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Computers and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 years |
Computer Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Computer Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of asset life or lease term |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Amortization of Intangible Assets, Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, useful life | 5 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, useful life | 11 years |
Research Content [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, useful life | 1 year |
Research Content [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, useful life | 2 years |
Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, useful life | 7 years |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, useful life | 1 year |
Recovered_Sheet1
Summary of Significant Accounting Policies - Summary of Basic and Diluted Weighted Average Common Shares (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 18,713 | 20,861 | 22,500 |
Weighted average common equivalent shares | 294 | 492 | 429 |
Diluted weighted average common shares outstanding | 19,007 | 21,353 | 22,929 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Summary of Goodwill by Segment and Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $80,001 | $78,954 |
Translation adjustments | -3,318 | 1,047 |
Goodwill, Ending Balance | 76,683 | 80,001 |
BT [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 43,491 | |
Translation adjustments | 577 | |
Goodwill, Ending Balance | 44,068 | |
M&S [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 33,362 | |
Translation adjustments | 442 | |
Goodwill, Ending Balance | 33,804 | |
Events [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 2,101 | |
Translation adjustments | 28 | |
Goodwill, Ending Balance | 2,129 | |
Products Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 2,560 | |
Translation adjustments | -106 | |
Goodwill, Ending Balance | 2,454 | |
Research Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 77,441 | |
Translation adjustments | -3,212 | |
Goodwill, Ending Balance | 74,229 | |
Project Consulting [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | ||
Translation adjustments | ||
Goodwill, Ending Balance |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Accumulated goodwill impairment losses | $0 | ||
Amortization of intangible assets | $2,171,000 | $2,230,000 | $2,445,000 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $39,274 | $40,206 |
Accumulated Amortization | 35,892 | 34,429 |
Total | 3,382 | 5,777 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 32,995 | 33,927 |
Accumulated Amortization | 29,613 | 28,552 |
Total | 3,382 | 5,375 |
Research Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,699 | 4,699 |
Accumulated Amortization | 4,699 | 4,699 |
Total | 0 | |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,507 | 1,507 |
Accumulated Amortization | 1,507 | 1,105 |
Total | 0 | 402 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 73 | 73 |
Accumulated Amortization | 73 | 73 |
Total | $0 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Year ending December 31, 2015 | $927 | |
Year ending December 31, 2016 | 872 | |
Year ending December 31, 2017 | 822 | |
Year ending December 31, 2018 | 761 | |
Total | $3,382 | $5,777 |
Marketable_Investments_Summary
Marketable Investments - Summary of Company's Marketable Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $80,988 | |
Gross Unrealized Gains | 117 | |
Gross Unrealized Losses | -92 | |
Total | 81,013 | |
State and Municipal Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,809 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | ||
Total | 6,814 | |
Federal Agency and Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 55,005 | 74,179 |
Gross Unrealized Gains | 13 | 112 |
Gross Unrealized Losses | -133 | -92 |
Total | $54,885 | $74,199 |
Marketable_Investments_Summary1
Marketable Investments - Summary of Maturity Periods of the Marketable Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | $81,013 | |
Federal Agency and Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
FY 2015 | 21,076 | |
FY 2016 | 16,109 | |
FY 2017 | 17,700 | |
Total | $54,885 | $74,199 |
Marketable_Investments_Summary2
Marketable Investments - Summary of Gross Unrealized Losses and Market Value of Available-for-Sale Securities with Unrealized Losses (Detail) (Federal Agency and Corporate Obligations [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Agency and Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Less Than 12 Months, Market Value | $38,175 | $30,645 |
Available for sale securities, Less Than 12 Months, Unrealized Losses | 133 | 92 |
Available for sale securities, 12 Months or Greater, Market Value | 0 | 0 |
Available for sale securities, 12 Months or Greater, Unrealized Losses | $0 | $0 |
Marketable_Investments_Additio
Marketable Investments - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Auction rate securities par value | $80,988,000 | $80,988,000 | |||
ARS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Auction rate securities par value | 11,000,000 | 11,000,000 | |||
Loss realized on ARS | 1,900,000 | 1,900,000 | 1,900,000 | ||
Proceeds from sale of ARS | $9,100,000 | ||||
Minimum [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Intervals for each security | 7 days | ||||
Interest rates on securities ranged | 0.10% | 0.10% | |||
Maximum [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Intervals for each security | 35 days | ||||
Interest rates on securities ranged | 0.40% | 0.50% |
Marketable_Investments_Summary3
Marketable Investments - Summary of Company's Fair Value Hierarchy for its Financial Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | $56,679 | $94,160 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 1,794 | 6,897 |
Federal Agency and Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 54,885 | 80,449 |
State and Municipal Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 6,814 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 1,794 | 6,897 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 1,794 | 6,897 |
Level 1 [Member] | Federal Agency and Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | ||
Level 1 [Member] | State and Municipal Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 54,885 | 87,263 |
Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | ||
Level 2 [Member] | Federal Agency and Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 54,885 | 80,449 |
Level 2 [Member] | State and Municipal Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 6,814 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | ||
Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | ||
Level 3 [Member] | Federal Agency and Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | ||
Level 3 [Member] | State and Municipal Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis |
Marketable_Investments_Summary4
Marketable Investments - Summary of Company's Fair Value Hierarchy for its Financial Assets (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Original maturities | 90 days | |
Federal Agency and Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $6.20 |
Marketable_Investments_Summary5
Marketable Investments - Summary of Changes in Fair Value of Level 3 Financial Assets (Detail) (ARS [Member], Level 3 [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
ARS [Member] | Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of assets, Beginning Balance | $8,970 |
Sales | -9,108 |
Gains included in other comprehensive income | 138 |
Losses transferred out of other comprehensive loss | 1,892 |
Losses included in earnings | -1,892 |
Fair value of assets, Ending Balance | $0 |
NonMarketable_Investments_Addi
Non-Marketable Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Carrying value of the Company's non-marketable investments | $3,800,000 | $5,700,000 | |
Gross distributions received from funds | 1,500,000 | 400,000 | 500,000 |
Gain (losses) from non-marketable investments | -300,000 | -600,000 | 100,000 |
Book value of investment | 700,000 | 900,000 | |
Bonus paid under cash bonus plan | $0 | ||
Cash bonus plan expiration date | 30-Jun-15 | ||
Maximum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Participant in the cash bonus plan | 10 | ||
Minimum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Ownership interest of Company | 5.00% |
Income_Taxes_Income_Before_Inc
Income Taxes - Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $12,939 | $13,557 | $24,124 |
Foreign | 5,450 | 6,435 | 8,030 |
Total | $18,389 | $19,992 | $32,154 |
Income_Taxes_Components_of_the
Income Taxes - Components of the Income Tax Provision (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $11,644 | $8,286 | $12,420 |
State | 2,239 | 1,624 | 3,069 |
Foreign | 1,167 | 1,587 | 1,336 |
Total current | 15,050 | 11,497 | 16,825 |
Deferred: | |||
Federal | -6,470 | -3,935 | -4,449 |
State | -1,095 | -562 | -736 |
Foreign | 39 | -32 | -5,782 |
Total deferred | -7,526 | -4,529 | -10,967 |
Income tax provision | $7,524 | $6,968 | $5,858 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of the Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision at federal statutory rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) in tax resulting from: | |||
State tax provision, net of federal benefit | 4.20% | 3.40% | 4.90% |
Foreign tax rate differential | -3.20% | -4.90% | -2.70% |
Stock option compensation deduction | 2.60% | 2.00% | 0.70% |
Non-deductible expenses | 1.10% | 2.40% | 0.60% |
Change in valuation allowance | -1.00% | 0.50% | -0.80% |
Foreign tax credits | -3.70% | -0.90% | |
Benefit upon audit settlement | -21.10% | ||
Out-of-period adjustment | 2.50% | ||
Other, net | -0.30% | 0.20% | 2.50% |
Effective tax rate | 40.90% | 34.90% | 18.20% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Income Taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ||||
Non-deductible reserves and accruals | $10,164 | $7,239 | ||
Stock compensation | 5,086 | 4,539 | ||
Other assets | 838 | |||
Net operating loss and other carryforwards | 9,070 | 10,830 | ||
Gross deferred tax asset | 25,158 | 22,608 | ||
Less - valuation allowance | -1,565 | -2,200 | -2,086 | -3,077 |
Sub-total | 23,593 | 20,408 | ||
Depreciation and amortization | -799 | -2,945 | ||
Goodwill amortization | -5,224 | -5,401 | ||
Other liabilities | -2,134 | |||
Deferred commissions | -5,399 | -5,080 | ||
Net deferred tax asset | $12,171 | $4,848 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Entity | |||||
Income Taxes [Line Items] | |||||
Number of wholly owned legal entities | 2 | ||||
Amortization period | 9 years 6 months | ||||
Current net deferred tax assets | $4,600,000 | $2,200,000 | |||
Long-term net deferred tax assets | 7,900,000 | 3,700,000 | |||
Current net deferred tax liabilities | 200,000 | 200,000 | |||
Long-term net deferred tax liabilities | 97,000 | 852,000 | |||
Valuation allowance | 1,565,000 | 2,200,000 | 2,086,000 | 3,077,000 | |
Operating loss carryforwards, expiration beginning year | 2019 | ||||
Operating loss carryforwards, expiration ending year | 2028 | ||||
Operating loss carryforwards relate to a prior acquisition | 5,000,000 | ||||
Deferred income assets recognized | 5,900,000 | ||||
U.S. federal and state capital loss carryforwards | 1,200,000 | ||||
Deferred tax assets, Capital loss carryforwards expires in 2016 | 800,000 | ||||
Deferred tax assets, Capital loss carryforwards expires in 2018 | 400,000 | ||||
Net tax benefits (deficiencies) from tax deductions in excess of (or less than) book deductions resulting from employee stock option exercises | 400,000 | -300,000 | |||
Undistributed earnings of company's foreign subsidiaries | 15,600,000 | ||||
Unrecognized tax benefits | 2,136,000 | 2,012,000 | 1,844,000 | 1,269,000 | |
Accrued interest and penalties related to uncertain tax positions | 200,000 | 100,000 | |||
Domestic Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | 5,400,000 | ||||
Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | $23,500,000 |
Income_Taxes_Summary_of_Change
Income Taxes - Summary of Changes in Deferred Tax Valuation Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Deferred tax valuation allowance, Beginning Balance | $2,200 | $2,086 | $3,077 |
Additions | 17 | 801 | 11 |
Deductions | -574 | -712 | -1,066 |
Translation adjustments | -78 | 25 | 64 |
Deferred tax valuation allowance, Ending Balance | $1,565 | $2,200 | $2,086 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, Beginning Balance | $2,012 | $1,844 | $1,269 |
Additions for tax positions of prior years | 6 | 414 | 112 |
Reductions for tax positions of prior years | -256 | -37 | |
Additions for tax positions of current year | 121 | 19 | 1,444 |
Settlements | -582 | ||
Lapse of statute of limitations | -360 | ||
Translation adjustments | -3 | -9 | -2 |
Unrecognized tax benefits, Ending Balance | $2,136 | $2,012 | $1,844 |
Commitments_Future_Contractual
Commitments - Future Contractual Obligations for Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $10,628 |
2016 | 9,503 |
2017 | 9,347 |
2018 | 9,104 |
2019 | 8,843 |
Thereafter | 50,792 |
Total minimum lease payments | $98,217 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Aggregate rent expense | $15.90 | $15.30 | $14.40 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Apr. 03, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Preferred stock, shares authorized | 500,000 | 500,000 | 500,000 | 500,000 | ||||||||||||||
Preferred stock, par value | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||||
Authorized to purchase of common stock under the stock repurchase program | $410,000,000 | $410,000,000 | $25,000,000 | |||||||||||||||
Cumulative repurchase of common stock | 14,400,000 | 14,400,000 | ||||||||||||||||
Aggregate cost of repurchase of common stock | 402,200,000 | |||||||||||||||||
Tender offer repurchase maximum | 130,000,000 | |||||||||||||||||
Tender offer increment in per share value | $0.25 | |||||||||||||||||
Tender Offer purchase of common stock | 2,054,732 | |||||||||||||||||
Tender offer purchase price of common stock per share | $36 | |||||||||||||||||
Tender offer shares aggregate purchase price | 74,000,000 | |||||||||||||||||
Expenses related to tender offer | 1,100,000 | |||||||||||||||||
Tender offer expired date | 1-May-13 | |||||||||||||||||
Treasury stock, retired | 11,700,000 | |||||||||||||||||
Carrying value of retired stock | 303,000,000 | |||||||||||||||||
Dividend declared and paid per share | $0.16 | $0.16 | $0.16 | $0.16 | $0.15 | $0.15 | $0.15 | $0.15 | $0.14 | $0.14 | $0.14 | $0.14 | ||||||
Dividend declared per share | $0.64 | $0.60 | $0.56 | |||||||||||||||
Aggregate dividend declared for the year | 12,000,000 | 12,400,000 | 12,600,000 | |||||||||||||||
Option Outstanding and vested | 1,954,000 | 1,734,000 | 1,954,000 | 1,734,000 | ||||||||||||||
Minimum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Tender offer authorized price per share | $32 | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Tender offer authorized price per share | $36 | |||||||||||||||||
Equity Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Future awards granted or issued under plans | 12,000 | 12,000 | ||||||||||||||||
Number of installments upon which share based awards vest | 4 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Weighted average grant date fair value for RSUs granted | $36.67 | $34.58 | $33.88 | |||||||||||||||
Number of shares received per restricted stock unit on lapse of restrictions and vesting condition met | 1 | |||||||||||||||||
Value of RSUs vested and converted to common stock | 3,500,000 | 2,400,000 | 1,600,000 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | Equity Plan [Member] | Minimum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Options vested period | 3 years | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Equity Plan [Member] | Maximum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Options vested period | 4 years | |||||||||||||||||
Stock Options [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Intrinsic value of options exercised | 2,300,000 | 6,100,000 | 3,500,000 | |||||||||||||||
2006 Equity Plan [Member] | Equity Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Future awards granted or issued under plans | 1,300,000 | 1,300,000 | ||||||||||||||||
Shares authorized | 4,350,000 | 4,350,000 | ||||||||||||||||
Options vested period | 4 years | |||||||||||||||||
Option expiration period | 10 years | |||||||||||||||||
1996 Equity Plan [Member] | Equity Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Future awards granted or issued under plans | 0 | 0 | ||||||||||||||||
Shares authorized | 13,500,000 | 13,500,000 | ||||||||||||||||
Shares returned | 2,500,000 | |||||||||||||||||
Option expiration period | 10 years | |||||||||||||||||
Percentage of voting rights that trigger ISO fmv grant conditions | 10.00% | |||||||||||||||||
Exercise price rate of fair value | 110.00% | |||||||||||||||||
Option Outstanding and vested | 24,000 | 24,000 | ||||||||||||||||
1996 Equity Plan [Member] | Equity Plan [Member] | Minimum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Options vested period | 2 years | |||||||||||||||||
1996 Equity Plan [Member] | Equity Plan [Member] | Maximum [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Options vested period | 4 years | |||||||||||||||||
2006 Director Plan [Member] | Equity Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Future awards granted or issued under plans | 0 | 0 | ||||||||||||||||
Shares authorized | 450,000 | 450,000 | ||||||||||||||||
Shares returned | 80,000 | |||||||||||||||||
Option Outstanding and vested | 200,000 | 200,000 | ||||||||||||||||
Number of shares of common stock options entitlement of non- employee directors | 6,000 | |||||||||||||||||
Employee Stock Purchase Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Future awards granted or issued under plans | 300,000 | 300,000 | ||||||||||||||||
Shares authorized | 1,500,000 | 1,500,000 | ||||||||||||||||
Exercise price rate of fair value | 85.00% | |||||||||||||||||
Hours of work per week | 20 | |||||||||||||||||
Duration of purchase periods under employee stock purchase plan | 6 months | |||||||||||||||||
Holding period of stocks acquired under employee stock purchase plan | 1 year | |||||||||||||||||
Value used to derive maximum number of shares per participant for employee stock purchase | $12,500 | |||||||||||||||||
Employee maximum elected percentage reduction of compensation to purchase shares | 10.00% | |||||||||||||||||
1996 Director [Member] | Equity Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Future awards granted or issued under plans | 0 | 0 | ||||||||||||||||
Option Outstanding and vested | 13,000 | 13,000 | ||||||||||||||||
Prior to 2011 [Member] | Equity Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Future awards granted or issued under plans | 12,500 | 12,500 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Shares, Outstanding at December 31, 2013 | 1,734 |
Number of Shares, Granted | 550 |
Number of Shares, Exercised | -255 |
Number of Shares, Forfeited | -75 |
Number of Shares, Outstanding at December 31, 2014 | 1,954 |
Number of Shares, Exercisable at December 31, 2014 | 852 |
Number of Shares, Vested and expected to vest at December 31, 2014 | 1,837 |
Weighted - Average Exercise Price Per Share, Outstanding, Beginning balance | $31.85 |
Weighted - Average Exercise Price Per Share, Granted | $38.20 |
Weighted - Average Exercise Price Per Share, Exercised | $29.67 |
Weighted - Average Exercise Price Per Share, Forfeited | $34.82 |
Weighted - Average Exercise Price Per Share, Outstanding, Ending balance | $33.81 |
Weighted - Average Exercise Price Per Share, Exercisable at December 31, 2014 | $30.46 |
Weighted Average Exercise Price Per Share, Vested and expected to vest at December 31, 2014 | $33.61 |
Weighted - Average Remaining Contractual Term, Outstanding at December 31, 2014 | 7 years 1 month 10 days |
Weighted - Average Remaining Contractual Term, Exercisable at December 31, 2014 | 5 years 11 days |
Weighted - Average Remaining Contractual Term, Vested and expected to vest at December 31, 2014 | 6 years 11 months 27 days |
Aggregate Intrinsic Value, Outstanding at December 31, 2014 | $10,870 |
Aggregate Intrinsic Value, Exercisable at December 31, 2014 | 7,582 |
Aggregate Intrinsic Value, Vested and expected to vest at December 31, 2014 | $10,587 |
Stockholders_Equity_Details_of
Stockholders' Equity - Details of Restricted Stock Unit Activity (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units (RSUs) [Member] | |||
Schedule Of Summary Of Restricted Stock Unit Activity [Line Items] | |||
Number of Shares, Unvested at December 31, 2013 | 372 | ||
Number of Shares, Granted | 235 | ||
Number of Shares, Vested | -96 | ||
Number of Shares, Forfeited | -78 | ||
Number of Shares, Unvested at December 31, 2014 | 433 | 372 | |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $34.14 | ||
Weighted-Average Grant Date Fair Value, Granted | $36.67 | $34.58 | $33.88 |
Weighted-Average Grant Date Fair Value, Vested or settled | $33.99 | ||
Weighted-Average Grant Date Fair Value, Forfeited | $33.61 | ||
Weighted-Average Grant Date Fair Value , Unvested, Ending Balance | $35.64 | $34.14 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of Shares Purchased by Employees Under the Stock Purchase Plan (Detail) (USD $) | 6 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Aug. 31, 2014 | Feb. 28, 2014 | Aug. 31, 2013 | Feb. 28, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Shares Purchased | 21 | 23 | 27 | 26 |
Purchase Price | $30.55 | $27.83 | $23.42 | $23.34 |
Employee_Pension_Plans_Additio
Employee Pension Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Contribution to defined contribution plans | $4 | $3.60 | $3.20 |
Reorganization_Additional_Info
Reorganization - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee | Employee | Employee | ||
Restructuring and Related Activities [Abstract] | ||||
Severance and related costs | $0.40 | $1.80 | $1.90 | $1.40 |
Percentage of workforce reduction | 1.00% | 2.50% | ||
Number of additional employees terminated related to sales reorganization and other cost reduction initiatives | 31 | 17 | ||
Number of sales employees for which severance was incurred based on statutory termination benefits | 3 |
Reorganization_Summary_of_Roll
Reorganization - Summary of Rolls Forward of Activity in Reorganization Accrual (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Additions | $1,817 | $1,905 | $1,421 |
Workforce Reduction [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrual Beginning Balance | 121 | 14 | |
Additions | 1,817 | 1,905 | |
Cash payments | -1,820 | -1,798 | |
Accrual Ending Balance | $118 | $121 |
Operating_Segment_and_Enterpri2
Operating Segment and Enterprise Wide Reporting - Summary of Information about Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Research services revenues | $207,517 | $202,843 | $203,091 | ||||||||
Advisory services and events revenues | 104,545 | 94,807 | 89,940 | ||||||||
Total segment revenues | 80,681 | 75,363 | 82,947 | 73,071 | 77,521 | 69,815 | 78,953 | 71,361 | 312,062 | 297,650 | 293,031 |
Segment expenses | 120,009 | 110,769 | 107,017 | ||||||||
Contribution margin (loss) | 192,053 | 186,881 | 186,014 | ||||||||
Selling, marketing, administrative and other expenses | -169,852 | -160,913 | -151,388 | ||||||||
Amortization of intangible assets | -2,171 | -2,230 | -2,445 | ||||||||
Reorganization costs | -1,817 | -1,905 | -1,421 | ||||||||
Other income and gains (losses) on investments | 176 | -1,841 | 1,394 | ||||||||
Income before income taxes | 18,389 | 19,992 | 32,154 | ||||||||
Products Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Research services revenues | 207,517 | 202,843 | 203,091 | ||||||||
Advisory services and events revenues | 20,759 | 19,376 | 17,905 | ||||||||
Total segment revenues | 228,276 | 222,219 | 220,996 | ||||||||
Segment expenses | 39,466 | 36,384 | 36,468 | ||||||||
Contribution margin (loss) | 188,810 | 185,835 | 184,528 | ||||||||
Research Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Advisory services and events revenues | 48,658 | 57,865 | 56,928 | ||||||||
Total segment revenues | 48,658 | 57,865 | 56,928 | ||||||||
Segment expenses | 53,307 | 58,685 | 57,440 | ||||||||
Contribution margin (loss) | -4,649 | -820 | -512 | ||||||||
Project Consulting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Advisory services and events revenues | 35,128 | 17,566 | 15,107 | ||||||||
Total segment revenues | 35,128 | 17,566 | 15,107 | ||||||||
Segment expenses | 27,236 | 15,700 | 13,109 | ||||||||
Contribution margin (loss) | $7,892 | $1,866 | $1,998 |
Operating_Segment_and_Enterpri3
Operating Segment and Enterprise Wide Reporting - Schedule of Net Long-lived Tangible Assets by Location (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived tangible assets | $32,174 | $39,868 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived tangible assets | 28,558 | 35,167 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived tangible assets | 1,625 | 2,212 |
Europe (Excluding United Kingdom) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived tangible assets | 329 | 174 |
Other [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived tangible assets | $1,662 | $2,315 |
Operating_Segment_and_Enterpri4
Operating Segment and Enterprise Wide Reporting - Schedule of Net Revenues by Geographic Destination and as a Percentage of Total Revenues (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $80,681 | $75,363 | $82,947 | $73,071 | $77,521 | $69,815 | $78,953 | $71,361 | $312,062 | $297,650 | $293,031 |
Revenues by geographical area percentage | 100.00% | 100.00% | 100.00% | ||||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 232,440 | 218,900 | 211,211 | ||||||||
Revenues by geographical area percentage | 74.00% | 74.00% | 72.00% | ||||||||
Europe (Excluding United Kingdom) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 30,257 | 30,956 | 33,146 | ||||||||
Revenues by geographical area percentage | 10.00% | 10.00% | 11.00% | ||||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 16,804 | 16,293 | 16,555 | ||||||||
Revenues by geographical area percentage | 5.00% | 5.00% | 6.00% | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 17,089 | 16,995 | 16,742 | ||||||||
Revenues by geographical area percentage | 6.00% | 6.00% | 6.00% | ||||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $15,472 | $14,506 | $15,377 | ||||||||
Revenues by geographical area percentage | 5.00% | 5.00% | 5.00% |
Certain_Balance_Sheet_Accounts2
Certain Balance Sheet Accounts - Summary of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $74,626 | $75,692 |
Less accumulated depreciation | 42,452 | 35,824 |
Property and equipment, net | 32,174 | 39,868 |
Computers and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,785 | 18,446 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 22,399 | 22,315 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,627 | 8,902 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $25,815 | $26,029 |
Certain_Balance_Sheet_Accounts3
Certain Balance Sheet Accounts - Summary of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Payroll and related benefits | $24,038 | $20,635 |
Taxes | 2,050 | 2,692 |
Other | 10,129 | 10,144 |
Total accrued expenses and other current liabilities | $36,217 | $33,471 |
Certain_Balance_Sheet_Accounts4
Certain Balance Sheet Accounts - Summary of Non-current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Deferred tax liability | $97 | $852 |
Deferred rent | 6,501 | 6,678 |
Other | 2,810 | 2,612 |
Total non-current liabilities | $9,408 | $10,142 |
Certain_Balance_Sheet_Accounts5
Certain Balance Sheet Accounts - Summary of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | |||
Balance, beginning of year | $254 | $404 | $326 |
Provision for doubtful accounts | 320 | 189 | 708 |
Write-offs | -386 | -339 | -630 |
Balance, end of year | $188 | $254 | $404 |
Summary_Selected_Quarterly_Fin2
Summary Selected Quarterly Financial Data - Summary of Selected Consolidated Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $80,681 | $75,363 | $82,947 | $73,071 | $77,521 | $69,815 | $78,953 | $71,361 | $312,062 | $297,650 | $293,031 |
Income from operations | 6,188 | 4,925 | 7,080 | 20 | 4,464 | 4,301 | 9,788 | 3,280 | 18,213 | 21,833 | 30,760 |
Net income | $3,599 | $3,043 | $4,289 | ($66) | $2,161 | $2,509 | $6,185 | $2,169 | $10,865 | $13,024 | $26,296 |
Basic income per common share | $0.20 | $0.17 | $0.23 | $0.11 | $0.12 | $0.29 | $0.10 | $0.58 | $0.62 | $1.17 | |
Diluted income per common share | $0.19 | $0.16 | $0.23 | $0.11 | $0.12 | $0.28 | $0.10 | $0.57 | $0.61 | $1.15 |
Summary_Selected_Quarterly_Fin3
Summary Selected Quarterly Financial Data - Additional Information (Detail) (ARS [Member], USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
ARS [Member] | |||
Effect of Fourth Quarter Events [Line Items] | |||
Loss for sale of portfolio of auction rate securities | $1.90 | $1.90 | $1.90 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | Jun. 30, 2015 | Feb. 11, 2015 |
Restructuring Cost and Reserve [Line Items] | |||||||
Percentage of workforce reduction | 1.00% | 2.50% | |||||
Expected pre-tax expenses related to cash severance and employee termination benefit cost | $0.40 | $1.80 | $1.90 | $1.40 | |||
Forecast [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected increase in the workforce | 7.00% | ||||||
Minimum [Member] | Forecast [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected pre-tax expenses related to cash severance and employee termination benefit cost | 3.5 | ||||||
Maximum [Member] | Forecast [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected pre-tax expenses related to cash severance and employee termination benefit cost | $4 | ||||||
Subsequent Event [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Percentage of workforce reduction | 4.00% |