Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 04, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FORR | ||
Entity Registrant Name | Forrester Research, Inc. | ||
Entity Central Index Key | 0001023313 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 19,123,000 | ||
Entity Public Float | $ 348,000,000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 000-21433 | ||
Entity Tax Identification Number | 04-2797789 | ||
Entity Address, Address Line One | 60 Acorn Park Drive | ||
Entity Address, City or Town | Cambridge | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02140 | ||
City Area Code | 617 | ||
Local Phone Number | 613-6000 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement related to its 2021 Annual Stockholders’ Meeting to be filed subsequently -- Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 90,257 | $ 67,904 |
Accounts receivable, net of allowance for expected credit losses of $708 and $628 as of December 31, 2020 and 2019, respectively (Note 1) | 84,695 | 84,605 |
Deferred commissions | 23,620 | 20,326 |
Prepaid expenses and other current assets | 18,588 | 19,201 |
Total current assets | 217,160 | 192,036 |
Property and equipment, net | 27,032 | 29,937 |
Operating lease right-of-use assets | 69,296 | 69,100 |
Goodwill | 247,211 | 243,895 |
Intangible assets, net | 77,995 | 97,363 |
Other assets | 5,524 | 6,829 |
Total assets | 644,218 | 639,160 |
Current Liabilities: | ||
Accounts payable | 657 | 505 |
Accrued expenses and other current liabilities | 76,620 | 79,857 |
Current portion of long-term debt | 12,500 | 9,375 |
Deferred revenue | 179,968 | 179,194 |
Total current liabilities | 269,745 | 268,931 |
Long-term debt, net of deferred financing fees | 95,299 | 121,170 |
Non-current operating lease liabilities | 70,323 | 67,062 |
Other non-current liabilities (Note 6, 13) | 23,085 | 23,909 |
Total liabilities | 458,452 | 481,072 |
Commitments and contingencies (Note 5, 14) | ||
Stockholders' Equity: | ||
Preferred stock, $0.01 par value Authorized - 500 shares; issued and outstanding - none | ||
Common stock, $0.01 par value Authorized - 125,000 shares Issued - 23,648 and 23,275 shares as of December 31, 2020 and 2019, respectively Outstanding - 19,017 and 18,644 shares as of December 31, 2020 and 2019, respectively | 236 | 233 |
Additional paid-in capital | 230,128 | 216,454 |
Retained earnings | 127,981 | 118,147 |
Treasury stock - 4,631 shares as of December 31, 2020 and 2019 | (171,889) | (171,889) |
Accumulated other comprehensive loss | (690) | (4,857) |
Total stockholders’ equity | 185,766 | 158,088 |
Total liabilities and stockholders’ equity | $ 644,218 | $ 639,160 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for expected credit losses | $ 708 | $ 628 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 23,648,000 | 23,275,000 |
Common stock, shares outstanding | 19,017,000 | 18,644,000 |
Treasury stock, shares | 4,631,000 | 4,631,000 |
Consolidated Statements of oper
Consolidated Statements of operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 448,984 | $ 461,697 | $ 357,575 |
Operating expenses: | |||
Selling and marketing | 166,200 | 172,865 | 131,824 |
General and administrative | 50,369 | 53,042 | 43,920 |
Depreciation | 9,879 | 8,572 | 7,955 |
Amortization of intangible assets | 19,683 | 22,619 | 1,162 |
Acquisition and integration costs | 5,779 | 8,948 | 3,787 |
Total operating expenses | 432,809 | 462,772 | 335,150 |
Income (loss) from operations | 16,175 | (1,075) | 22,425 |
Interest expense | (5,340) | (8,054) | |
Other income (expense), net | (374) | (515) | 674 |
Gains on investments, net | 2,472 | 45 | 426 |
Income (loss) before income taxes | 12,933 | (9,599) | 23,525 |
Income tax expense (benefit) | 2,943 | (29) | 8,145 |
Net income (loss) | $ 9,990 | $ (9,570) | $ 15,380 |
Basic income (loss) per common share | $ 0.53 | $ (0.52) | $ 0.85 |
Diluted income (loss) per common share | $ 0.53 | $ (0.52) | $ 0.84 |
Basic weighted average common shares outstanding | 18,827 | 18,492 | 18,091 |
Diluted weighted average common shares outstanding | 18,935 | 18,492 | 18,380 |
Research [Member] | |||
Revenues: | |||
Total revenues | $ 294,485 | $ 298,735 | $ 228,399 |
Consulting [Member] | |||
Revenues: | |||
Total revenues | 144,362 | 135,952 | 115,705 |
Events [Member] | |||
Revenues: | |||
Total revenues | 10,137 | 27,010 | 13,471 |
Cost of Services and Fulfillment [Member] | |||
Operating expenses: | |||
Cost of services and fulfillment | $ 180,899 | $ 196,726 | $ 146,502 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 9,990 | $ (9,570) | $ 15,380 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | 4,884 | 401 | (3,257) |
Net change in market value of interest rate swap | (717) | (104) | |
Net change in market value of investments | 141 | ||
Other comprehensive income (loss) | 4,167 | 297 | (3,116) |
Comprehensive income (loss) | $ 14,157 | $ (9,273) | $ 12,264 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] |
Beginning Balance at Dec. 31, 2017 | $ 141,189 | $ 224 | $ 181,910 | $ 123,010 | $ (161,943) | $ (2,012) | |||
Beginning Balance (ASU No. 2014-09 [Member]) at Dec. 31, 2017 | $ 3,803 | $ 3,829 | $ (26) | ||||||
Beginning Balance, Shares at Dec. 31, 2017 | 22,432 | 4,391 | |||||||
Issuance of common stock under stock plans, including tax effects | 10,492 | $ 6 | 10,486 | ||||||
Issuance of common stock under stock plans, including tax effects, Shares | 519 | ||||||||
Stock-based compensation expense | 8,300 | 8,300 | |||||||
Repurchases of common stock | (9,946) | $ (9,946) | |||||||
Repurchase of common stock, Shares | 240 | ||||||||
Dividends paid on common shares | (14,502) | (14,502) | |||||||
Net income (loss) | 15,380 | 15,380 | |||||||
Net change in marketable investments, net of tax | 141 | 141 | |||||||
Foreign currency translation | (3,257) | (3,257) | |||||||
Ending Balance at Dec. 31, 2018 | 151,600 | $ 230 | 200,696 | 127,717 | $ (171,889) | (5,154) | |||
Ending Balance, Shares at Dec. 31, 2018 | 22,951 | 4,631 | |||||||
Issuance of common stock under stock plans, including tax effects | 4,077 | $ 3 | 4,074 | ||||||
Issuance of common stock under stock plans, including tax effects, Shares | 324 | ||||||||
Stock-based compensation expense | 11,684 | 11,684 | |||||||
Net income (loss) | (9,570) | (9,570) | |||||||
Net change in interest rate swap, net of tax | (104) | (104) | |||||||
Foreign currency translation | 401 | 401 | |||||||
Ending Balance at Dec. 31, 2019 | 158,088 | $ 233 | 216,454 | 118,147 | $ (171,889) | (4,857) | |||
Ending Balance, Shares at Dec. 31, 2019 | 23,275 | 4,631 | |||||||
Issuance of common stock under stock plans, including tax effects | 2,800 | $ 3 | 2,797 | ||||||
Issuance of common stock under stock plans, including tax effects, Shares | 373 | ||||||||
Stock-based compensation expense | 10,877 | 10,877 | |||||||
Net income (loss) | 9,990 | 9,990 | |||||||
Net change in interest rate swap, net of tax | (717) | (717) | |||||||
Foreign currency translation | 4,884 | 4,884 | |||||||
Ending Balance at Dec. 31, 2020 | $ 185,766 | $ 236 | $ 230,128 | $ 127,981 | $ (171,889) | $ (690) | |||
Ending Balance (ASU No. 2016-13 [Member]) at Dec. 31, 2020 | $ (156) | $ (156) | |||||||
Ending Balance, Shares at Dec. 31, 2020 | 23,648 | 4,631 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 9,990 | $ (9,570) | $ 15,380 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 9,879 | 8,572 | 7,955 |
Impairment of property and equipment | 1,098 | ||
Amortization of intangible assets | 19,683 | 22,619 | 1,162 |
Net gains from investments | (2,472) | (45) | (426) |
Deferred income taxes | (1,677) | (3,957) | 2,931 |
Stock-based compensation | 10,877 | 11,684 | 8,300 |
Operating lease right-of-use assets, amortization, and impairments | 13,397 | 12,592 | |
Amortization of deferred financing fees | 981 | 968 | |
Amortization of discount on investments | (68) | ||
Foreign currency losses | 582 | 933 | 603 |
Changes in assets and liabilities, net of businesses acquired | |||
Accounts receivable | 234 | 3,696 | 2,588 |
Deferred commissions | (3,299) | (4,643) | (1,077) |
Prepaid expenses and other current assets | (423) | (3,697) | 285 |
Accounts payable | 109 | 278 | 172 |
Accrued expenses and other liabilities | 297 | 4,421 | 1,217 |
Deferred revenue | (925) | 15,508 | (604) |
Operating lease liabilities | (10,577) | (10,953) | |
Net cash provided by operating activities | 47,754 | 48,406 | 38,418 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (237,684) | (9,250) | |
Purchases of property and equipment | (8,905) | (11,890) | (5,049) |
Purchases of marketable investments | (41,810) | ||
Proceeds from maturities of marketable investments | 63,627 | ||
Proceeds from sales of marketable investments | 32,568 | ||
Other investing activity | 4,335 | 29 | |
Net cash provided by (used in) investing activities | (4,570) | (249,545) | 40,086 |
Cash flows from financing activities: | |||
Proceeds from borrowings, net of costs | 171,275 | ||
Payments on borrowings | (23,375) | (42,250) | |
Payment of debt issuance costs | (857) | ||
Deferred acquisition payments | (3,112) | (2,799) | |
Dividends paid on common stock | (14,502) | ||
Repurchases of common stock | (9,946) | ||
Proceeds from issuance of common stock under employee equity incentive plans | 5,706 | 6,327 | 13,020 |
Taxes paid for net share settlements of stock-based compensation awards | (2,906) | (2,258) | (2,526) |
Net cash provided by (used in) financing activities | (23,687) | 129,438 | (13,954) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,963 | 597 | (4,044) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 21,460 | (71,104) | 60,506 |
Cash, cash equivalents and restricted cash, beginning of year | 69,192 | 140,296 | 79,790 |
Cash, cash equivalents and restricted cash, end of year | 90,652 | 69,192 | 140,296 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 4,373 | 7,003 | |
Cash paid for income taxes | $ 3,194 | $ 4,433 | $ 4,174 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Statement Of Cash Flows [Abstract] | |
Non-cash investing activities, debt issuance costs | $ 3.7 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Basis of Presentation Forrester Research, Inc. is a global independent research and advisory firm. The Company helps leaders across technology, marketing, customer experience, product and sales functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work, navigate change, and put their customers at the center of their leadership, strategy, and operations. The Company’s unique insights are grounded in annual surveys of more than 675,000 consumers, business leaders, and technology leaders worldwide, rigorous and objective research methodologies, over 45 million real-time feedback votes, and the shared wisdom of our clients. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-K. The Company’s fiscal year is the twelve months from January 1 through December 31 and all references to 2020, 2019, and 2018 refer to the fiscal year unless otherwise noted. Principles of Consolidations 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. Reclassification Due to the Company’s operating segment realignments during 2020 (refer to Note 12 – Operating Segments and Enterprise Wide Reporting Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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, leases, valuation of goodwill, intangible and other long-lived assets and acquired assets and liabilities from business combinations, ongoing impairment reviews of Liquidity and Impact of COVID-19 The COVID-19 pandemic significantly affected the Company beginning in March 2020 primarily through lower contract bookings and a reduction in revenues from the conversion of the Company’s events from in-person to virtual events throughout 2020. While the duration and severity of the pandemic is uncertain, the Company did experience a rebound in contract bookings in the fourth quarter of 2020 and expects that trend to continue in 2021. The Company’s events business continues to be negatively affected by the pandemic, and the Company has announced that all events in the first half of 2021 will be held as virtual events. The Company hopes to hold its events during the second half of 2021 as hybrid events, consisting of both in-person and virtual experiences. The extent to which the COVID-19 pandemic ultimately impacts the Company’s business, financial condition, results of operations, cash flows, and liquidity may differ from the Company’s current estimates due to inherent uncertainties regarding the duration and further spread of the outbreak, its severity, actions taken to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. During 2020, the Company implemented several cost-reduction measures that include reductions to travel, new hiring, and employee incentive compensation programs. These measures, excluding travel restrictions in the first half of 2021, have essentially been restored for 2021. The Company will continue to proactively respond to the situation and may take further actions that alter the Company’s business operations as may be required by governmental authorities, or that the Company determines are in the best interests of its employees and customers. As of December 31, 2020 , the Company is in compliance with its financial covenants under its c redit a greement (refer to Note 4 – Debt ). The Company currently forecasts that it will be in compliance with its financial covenants for at least one year from the issuance of these financial statements. If the impact of COVID-19 is more severe than currently forecasted this may impact the Company’s ability to comply with its financial covenants which could have a material adverse effect on the Company. The Company assessed certain accounting estimates that generally require consideration of forecasted financial information in context with the information reasonably available to it and the unknown future impacts COVID-19 as of December 31, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for expected credit losses, the carrying value of goodwill, intangible and other long-lived assets, valuation allowances for tax assets, and revenue recognition. During 2020, the Company recorded $2.3 million of right-of-use asset impairments and $1.1 million of leasehold impairments related to a lease of a facility that the Company no longer uses as a result of the integration of a recent acquisition (refer to Note 5 – Leases Adoption of New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The allowance for expected credit losses on accounts receivable for the twelve months ended December 31, 2020 is summarized as follows (in thousands): Total Allowance Balance at December 31, 2019 $ 628 Cumulative effect adjustment of adopting Topic 326 218 Provision for expected credit losses 721 Write-offs (850 ) Translation adjustments (9 ) Balance at December 31, 2020 $ 708 When evaluating the adequacy of the allowance for expected credit losses, the Company makes judgments regarding the collectability of accounts receivable based, in part, on the Company’s historical loss rate experience, customer concentrations, management’s expectations of future losses as informed by current economic conditions, and changes in customer payment terms. If the expected 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. If the expected financial condition of the Company’s customers were to improve, the allowances may be reduced accordingly. The Company adopted the guidance in ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment The Company adopted the guidance in ASU No. 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . Fair Value Measurement Fair Value Measurements The Company adopted the guidance in ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . internal-use software (and hosting arrangements that include an internal-use software license). The adoption of this standard did not have a material impact on the Company’s financial position or results of operations . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements On January 1, 2019, the Company adopted Topic 842 using the modified retrospective method in which prior periods are not adjusted and the cumulative effect of applying the standard is recorded at the date of initial application. Adoption of the standard did not result in the Company recording a cumulative effect adjustment. The effect of adopting Topic 842 included recording operating lease right-of-use (“ROU”) assets of $53.3 million, operating lease liabilities of $60.8 million, and the elimination of deferred rent of $7.5 million. Adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. The Company elected the package of practical expedients permitted under Topic 842 which allows the carry forward of the historical lease classification for all leases that existed as of the adoption date. In addition, the Company elected to exempt short term leases from recognition of ROU assets and lease liabilities and elected not to separate lease and non-lease components within its leases. The Company adopted the guidance in ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, The Company adopted the guidance in ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, The Company adopted the guidance in ASU No. 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business The Company elected to adopt the guidance in ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Other Assets and Deferred Costs-Contracts with Customers On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method. Under this method, the reported results for 2018 reflect the application of Topic 606, while the reported results for prior periods were prepared under the guidance of ASU No. 2009-13, Revenue Recognition (Topic 605) The effect of adopting Topic 606 included a $7.8 million reduction in deferred revenue, primarily related to prepaid performance obligations expected to expire in 2018 and 2019 that would have been recognized in 2017 under the new guidance; a decrease of $5.5 million in prepaid expenses and other current assets related to deferred survey costs that would have been expensed as incurred in 2017 under the new guidance and the current tax impact of the cumulative effect; an increase of $0.9 million in deferred commissions related to the capitalization of fringe benefits as incremental costs to obtain customer contracts under the new guidance; and an increase of $ 0.6 million in other assets for the deferred tax effect of the cumulative effect. Retained earnings increased by $ 3.8 million as a net result of these adjustments. Fair Value Measurements The carrying amounts reflected in the Consolidated Balance Sheets for cash, accounts receivable, accounts payable, and accrued expenses (excluding contingent consideration discussed in Note 2 – Acquisitions Debt Additionally, the Company has certain financial assets and liabilities recorded at fair value at each balance sheet date, including cash equivalents and a derivative contract for an interest rate swap, in accordance with the accounting standards for fair value measurements. Refer to Note 7 – Fair Value Measurements 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 liquidated its entire portfolio of marketable investments in December of 2018 to fund the acquisition of SiriusDecisions. Forrester previously accounted for all marketable investments as available-for-sale securities and as such, the marketable investments were 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 were included in earnings and were determined using the specific identification method. The Company conducted periodic reviews to identify and evaluate each investment that had an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required under the accounting standards. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, were recorded, net of tax, in accumulated other comprehensive loss. During the year ended December 31, 2018, the Company did not record any other-than-temporary impairment losses on its available-for-sale securities. Realized losses on sales of the Company’s available-for-sale securities were $0.2 million for the year ended December 31, 2018 and were recorded in gains on investments, net in the Consolidated Statements of Operations. Presentation of Restricted Cash The following table summarizes the end-of-period cash and cash equivalents from the Company's Consolidated Balance Sheets and the total cash, cash equivalents and restricted cash as presented in the accompanying Consolidated Statements of Cash Flows (in thousands). For the Year Ended December 31, 2020 2019 Cash and cash equivalents $ 90,257 $ 67,904 Restricted cash classified in (1): Prepaid expenses and other current assets 395 1,250 Other assets — 38 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 90,652 $ 69,192 (1) Restricted cash consists of collateral required for letters of credit and credit card processing outside of the U.S. The short-term or long-term classification regarding the collateral for the letters of credit is determined in accordance with the expiration of the underlying lease as the letters of credit are non-cancellable while the leases are in effect. Concentrations of Credit Risk Financial instruments that potentially subject Forrester to concentrations of credit risk are principally cash, cash equivalents, accounts receivable, an interest rate swap contract, and foreign currency forward exchange contracts. The Company limits its risk exposure by having its cash, cash equivalents, interest rate swap and foreign currency forward exchange contracts with large commercial banks and by diversif ying counterparties. No single customer accounted for greater than 3 % of revenues or 3 % of accounts receivable in any of the periods presented. Forrester does not have any off-balance sheet arrangements. Business Acquisitions Forrester accounts for business combinations in accordance with the acquisition method of accounting as prescribed by FASB ASC Topic 805, Business Combinations In 2019, Forrester acquired SiriusDecisions, Inc. In 2018, Forrester acquired S.NOW SA (which operates as “FeedbackNow”) and SocialGlimpz, Inc. (which operates as “GlimpzIt”). Refer to Note 2 – Acquisitions Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair values of the tangible and identifiable intangible net assets acquired. Goodwill is not amortized; however, it is required to be tested for impairment annually, which requires assessment of the potential impairment at the reporting unit level. Testing for impairment is also required on an interim basis if an event or circumstance indicates it is more likely than not an impairment loss has been incurred. When performing an impairment assessment, the Company either uses a qualitative assessment, to determine if it is more likely than not that the estimated fair value of any reporting unit is less than its carrying amount, or a quantitative analysis, to determine and compare the fair value of each reporting unit to its carrying value, or a combination of both. An impairment loss is recognized to the extent that the carrying amount of goodwill of any reporting unit exceeds its estimated fair value. Absent an event that indicates a specific impairment may exist, the Company has selected November 30th as the date for performing the annual goodwill impairment test. Goodwill impairment charges have not been required for the years ended December 31, 2020, 2019 and 2018. Impairment of Other Long-Lived Tangible and Intangible Assets Forrester continually evaluates whether events or circumstances have occurred that indicate 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. The Company recorded $3.4 million of long-lived asset impairment charges during 2020 (refer to Note 5 – Leases Non-Current Liabilities The Company records deferred tax liabilities and other liabilities that are expected to be settled over a period that exceeds one year as non-current liabilities. Foreign Currency The functional currency 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 recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. 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 (expense), net in the Consolidated Statements of Operations. Forrester recorded $0.6 million, $0.9 million, and $0.6 million of foreign exchange losses during 2020, 2019, and 2018, respectively. Revenue The Company generates all of its revenues from contracts with customers, which totaled $449.0 million for the year ended December 31, 2020. The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation ( s ) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government. The Company accounts for a contract when it has approval and commitment from both parties, the fees, payment terms and rights of the parties regarding the products or services to be transferred are identified, the contract has commercial substance, and collectability of the consideration expected to be transferred is probable. The Company applies judgment in determining the customer’s ability and intention to pay for services expected to be transferred, which is based on factors including the customer’s payment history, management’s ability to mitigate exposure to credit risk (for example, requiring payment in advance of the transfer of products or services, or the ability to stop transferring promised products or services in the event a customer fails to pay consideration when due), and experience selling to similarly situated customers. Since the transaction price is fixed and defined as part of entering into a contract, and generally does not change, variable consideration is insignificant. Performance obligations within a contract are identified based on the products and services promised to be transferred in the contract. When a contract includes more than one promised product or service, the Company must apply judgment to determine whether the promises represent multiple performance obligations or a single, combined performance obligation. This evaluation requires the Company to determine if the promises are both capable of being distinct, where the customer can benefit from the product or service on its own or together with other resources readily available, and are distinct within the context of the contract, where the transfer of products or services is separately identifiable from other promises in the contract. When both criteria are met, each promised product or service is accounted for as a separate performance obligation. In cases where the promises are distinct, the Company is further required to evaluate if the promises are a series of products and services that are substantially the same and have the same pattern of transfer to the customer (referred to as the “series” guidance). When the Company determines that promises meet the series guidance, they are accounted for as a single, combined performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative basis according to their standalone selling prices. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the Company does not have a history of selling a performance obligation, management applies judgment to estimate the standalone selling price, taking into consideration available information, including market conditions, factors considered to set list prices, pricing of similar products, and internal pricing objectives. The corresponding allocated revenues are recognized when (or as) the performance obligations are satisfied, as discussed further below. Research revenues Research revenues consist primarily of subscriptions to Research, Connect, and Analytics products. The majority of Research revenues are annual subscriptions to our research, including access to all or a designated portion of our research and, depending on the type of license, unlimited analyst inquiry and unlimited participation in Forrester webinars, all of which are delivered throughout the contract period. The Company has concluded that these promises represent a stand ready obligation to provide a daily information service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these subscriptions meet the requirements of the series guidance and are each accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term, using an output measure of time elapsed. Certain of the Research products include advisory services or an Event ticket, which are accounted for as a separate performance obligation and are recognized at the point in time the service is completed, the final deliverable is transferred to the customer, or the Event occurs. Research revenues also include sales of electronic reprints, which are written research documents prepared by Forrester’s analysts and hosted via an on-line platform. Reprints include a promise to deliver a customer-selected research document and certain usage data provided through the on-line platform, which represents two performance obligations. The Company satisfies the performance obligation for the research document by providing access to the electronic reprint and accordingly recognizes revenue at that point in time. The Company satisfies the performance obligation for the data portion of the reprint on a daily basis and accordingly recognizes revenue over time. The majority of Connect revenues are the Company’s Leadership Board product which includes access to the Research offering, access to a private forum with other Leadership Board member peers, access to a Forrester advisor, member-generated content, and one Event ticket. The Company has concluded that all these promises, other than the Event ticket, represent a stand ready obligation to provide a daily information and peer service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these promises meet the requirements of the series guidance and are accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term, using an output measure of time elapsed. The Event ticket is accounted for as a separate performance obligation and is recognized when the Event occurs. Analytics revenues are primarily annual subscriptions to access designated survey data products and typically include an analytics client manager, all of which are delivered throughout the contract period. For Analytics subscriptions, the Company has concluded that these promises represent a stand ready obligation to provide a daily data service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these subscriptions meet the requirements of the series guidance and are accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term , using an output measure of time elapsed. Certain of the Analytics products include advisory services which are accounted for as a separate performance obligation and are recognized at the point in time the service is completed or the final deliverable is transferred to the customer , which is when the customer has received the benefit(s) of the service . Consulting revenues Consulting revenues consists of sales of consulting projects and advisory services. Consulting project revenues consist of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around technology, customer experience, and digital transformation. Projects are fixed-fee arrangements that are generally completed over two weeks Advisory services revenues are short-term presentations or knowledge sharing sessions (which can range from one hour to two days), such as speeches and advisory days. Each is a promise for a Forrester analyst to deliver a deeper understanding of Forrester’s published research and represents a single performance obligation. Revenue is recognized at the point in time the service is completed or the final deliverable is transferred to the customer, which is when the customer has received the benefit(s) of the service. Events revenues Events revenues consist of either ticket or sponsorship sales for Forrester-hosted in-person and virtual events. Each is a single promise that either allows entry to, or grants the right to promote a product or service at, a specific event. The Company concluded that each of these represents a single performance obligation. The Company recognizes revenue at the completion of the Event, which is the point in time when the customer has received the benefit(s) from attending or sponsoring the Event. Prepaid performance obligations (including Event tickets, reprints, consulting projects, and advisory services) on non-cancellable contracts that the Company estimates will expire unused are recognized in proportion to the pattern of related rights exercised by the customer. This assessment requires judgment, including estimating the percentage of prepaid rights that will go unexercised and anticipating the impact that future changes to products, pricing, and customer engagement will have on actual expirations. The Company updates estimates used to recognize unexercised rights on a quarterly basis. Refer to Note 12 – Operating Segment and Enterprise Wide Reporting Contract Modifications The Company considers a contract modification to exist when a mutually agreed upon change creates new, or updates existing, enforceable rights and obligations. The majority of the Company’s contract modifications result in additional or remaining distinct products and services and are treated on a prospective basis. Under the prospective method, the transaction price is updated to combine the unrecognized amount as of the modification date and the additional transaction price from the modification. This amount is then re-allocated to the remaining distinct performance obligations and recognized accordingly. Consulting contracts can be modified to update the scope of the services purchased. Since a consulting project is a single performance obligation that is only partially satisfied at the modification date, the updated project requirements are not distinct and the modification is accounted for as part of the existing contract. The effect of the modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either an increase or decrease) on a cumulative catch-up basis. For the year ended December 31, 2020, the Company recorded an immaterial amount of cumulative catch-up adjustments. Contract Assets and Liabilities Accounts Receivable Accounts receivable includes amounts billed and currently due from customers. Since the only condition for payment of our invoices is the passage of time, the Company records a receivable on the date the invoice is issued. Also included in accounts receivable are unbilled amounts resulting from revenue exceeding the amount billed to the customer, where the right to payment is unconditional. If the right to payment for services performed was conditional on something other than the passage of time, the unbilled amount would be recorded as a separate contract asset. There were no contract assets as of December 31, 2020. The majority of the Company’s contracts are non-cancellable. However, for contracts that are cancellable by the customer, the Company does not record a receivable when it issues an invoice. The Company records accounts receivable on these contracts only up to the amount of revenue earned but not yet collected. In addition, since the majority of the Company’s contracts are for a duration of one year and payment is expected within one year from the transfer of products and services, the Company does not adjust its receivables or transaction price for the effects of a significant financing component. Deferred Revenue The Company refers to contract liabilities as deferred revenue on the Consolidated Balance Sheets. Payment terms in the Company’s customer contracts vary, but generally require payment in advance of fully satisfying the performance obligation(s). Deferred revenue consists of billings in excess of revenue recognized. Similar to accounts receivable, the Company does not record deferred revenue for unpaid invoices issued on a cancellable contract. During the years ended December 31, 2020 and 2019, the Company recognized approximately $153.2 million and $147.2 million of revenue, respectively, related to its deferred revenue balance at January 1 of each such year. To determine revenue recognized in the current period from deferred revenue at the beginning of the period, the Company first allocates revenue to the individual deferred revenue balance outstanding at the beginning of the period, until the revenue equals that balance. Approximately $369.8 million of revenue is expected to be recognized during the next 24 months from remaining performance obligations as of December 31, 2020. Cost to Obtain Contracts The Company capitalizes commissions paid to sales representatives and related fringe benefits costs that are incremental to obtaining customer contracts. These costs are included in deferred commissions on the Consolidated Balance Sheets. The judgments made in determining the amount of costs incurred include the types of costs to capitalize and whether the costs are in fact incremental. The Company elected the practical expedient to account for these costs at a portfolio level as the Company’s contracts are similar in nature and the amortization model used closely matches the amortization expense that would be recognized on a contract-by-contract basis. Costs to obtain a contract are amortized to earnings over the initial contract term, which is the same period the related revenue is recognized. Amortization of the expense related to deferred commissions was $40.0 million, $36.0 million, and $32.2 million for the years ended December 31, 2020, 2019, and 2018, respectively, and is recorded in selling and marketing expenses in the Consolidated Statements of Operations Leases The Company determines whether an arrangement is a lease at inception of the arrangement. The Company accounts for a |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions 2019 SiriusDecisions On January 3, 2019, Forrester acquired 100% of the issued and outstanding shares of SiriusDecisions, Inc. (“SiriusDecisions”), a privately-held company based in Wilton, Connecticut with approximately 350 employees globally. SiriusDecisions equips business-to-business (“B2B”) sales, marketing, and product leaders with the actionable research, frameworks, tools, operational benchmarks and expert advice they need to maximize performance and drive alignment. The acquisition creates several opportunities for the Company, including cross-selling services to the Company’s respective client bases, extending SiriusDecisions’ platform, methodologies, data, and best-practices tools into new roles, and accelerating international and industry growth. Pursuant to the terms of the merger agreement, the Company paid $246.8 million at closing after certain transaction expense adjustments, which was subject to a working capital adjustment, and included the purchase price of $245.0 million plus an estimate of cash acquired and reduced by an estimate of certain working capital items. At the time of the merger, each vested SiriusDecisions stock option was converted into the right to receive the excess of the per share merger consideration over the exercise price of such stock option. All unvested SiriusDecisions stock options were cancelled without payment of any consideration. Total Consideration The following table summarizes the fair value of the aggregate consideration paid for SiriusDecisions (in thousands): Cash paid at close (1) $ 246,801 Working capital adjustment (2) (1,259 ) Total $ 245,542 (1) The cash paid at close represents the gross contractual amount paid. Net cash paid, which accounts for the cash acquired of $7.9 million and the working capital adjustment of $1.3 million , was $237.7 million and is reflected as an investing activity in the Consolidated Statements of Cash Flows. (2) Allocation of Purchase Price The following table summarizes the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed for the acquisition of SiriusDecisions (in thousands): Assets: Cash and cash equivalents $ 7,858 Accounts receivable 19,237 Prepaids and other current assets 3,660 Property and equipment 4,169 Goodwill (1) 158,569 Intangible assets (2) 115,000 Other assets 418 Total assets 308,911 Liabilities: Accounts payable and other current liabilities 8,924 Deferred revenue 26,143 Deferred tax liability 26,226 Long-term deferred revenue 1,037 Other long-term liabilities 1,039 Total liabilities 63,369 Net assets acquired $ 245,542 (1) Goodwill represents the expected revenue and cost synergies from combining SiriusDecisions with Forrester as well as the value of the acquired workforce. (2) All of the intangible assets are finite-lived. The determination of the fair value of the finite-lived intangible assets required management judgment and the consideration of a number of factors. In determining the fair values, management primarily relied on income valuation methodologies, in particular discounted cash flow models, and replacement cost valuation methodologies. The discounted cash flow models required the use of estimates, including projected cash flows related to the particular asset, the useful lives of the particular assets, the selection of royalty and discount rates used in the models, and certain published industry benchmark data. The replacement cost methodology required the use of estimates in determining the costs to replace the assets and the amount of obsolescence existing at the time of the acquisition. In establishing the estimated useful lives of the acquired intangible assets, the Company relied primarily on the duration of the cash flows utilized in the valuation model. Of the $115.0 million assigned to intangible assets, $13.0 million was assigned to the technology asset class with useful lives of 1 to 8 years (with a weighted average amortization period of 3.2 years), $13.0 million to backlog with a useful life of 2 years, $77.0 million to customer relationships with a useful life of 9.25 years, and $12.0 million to trademarks with an original useful life of 15.5 years. The weighted-average amortization period of all intangible assets was originally 8.4 years. The Company’s financial statements include the operating results of SiriusDecisions beginning on January 3, 2019, the date of the acquisition. SiriusDecisions’ operating results were being reported as its own operating segment prior to the Company’s segment realignments (refer to Note 12 – Operating Segment and Enterprise Wide Reporting Years Ended December 31, 2019 2018 Pro forma total revenue $ 472,810 $ 438,049 Pro forma net income (loss) $ 733 $ (10,069 ) The pro forma results have been prepared in accordance with U.S. GAAP and include the following pro forma adjustments in 2018: (1) an increase in interest expense and amortization of debt issuance costs related to the financing of the SiriusDecisions acquisition (refer to Note 4 – Debt 2018 FeedbackNow On July 6, 2018, Forrester acquired 100% of the issued and outstanding shares of S.NOW SA, a Switzerland-based business that operates as FeedbackNow. FeedbackNow is a maker of physical buttons and monitoring software that companies deploy to measure, analyze, and improve customer experience. The acquisition is part of Forrester's plan to build a real-time customer experience (“CX”) cloud solution. FeedbackNow provides a high-volume input source for the real-time CX cloud solution. The acquisition of FeedbackNow was determined to be an acquisition of a business under the provisions of Topic 805. The Company paid $8.4 million on the closing date. As discussed below, during 2020 and 2019, the Company paid additional amounts for the acquired working capital, indemnity holdback (payable over a two-year period from the closing), and contingent consideration (based on the financial performance of FeedbackNow during the two-year Total Consideration Transferred The following table summarizes the fair value of the aggregate consideration payable for FeedbackNow as of the acquisition date (in thousands): Cash paid at close (1) $ 8,425 Working capital adjustment (2) 798 Indemnity holdback (3) 1,485 Contingent purchase price (4) 3,388 Total $ 14,096 (1) The cash paid at close represents the gross contractual amount paid. Net cash paid, which accounts for the cash acquired of $0.5 million, was $8.0 million and is reflected as an investing activity in the Consolidated Statements of Cash Flows. (2) Represents the amount payable to the sellers based upon working capital as defined, and was paid to the sellers in 2019. (3) $1.0 million and $0.5 million of the holdback was paid during 2020 and 2019, respectively. (4) The acquisition of FeedbackNow included a contingent consideration arrangement that required additional consideration to be paid to the sellers based on the financial performance of FeedbackNow during the two-year period subsequent to the closing date. The fair value of this contingent consideration arrangement on the acquisition date was $3.4 million, which was recognized as purchase price. $2.7 million and $1.8 million was paid during 2020 and 2019, respectively, as a result of FeedbackNow meeting the financial performance targets. Refer to Note 7 – Fair Value Measurements for further discussion. Allocation of Purchase Price The following table summarizes the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed for the acquisition of FeedbackNow (in thousands): Assets: Cash $ 463 Accounts receivable 738 Prepaids and other current assets 487 Goodwill (1) 9,513 Intangible assets (2) 4,780 Other assets 75 Total assets 16,056 Liabilities: Accounts payable and other current liabilities 837 Contract liabilities 298 Deferred tax liability 825 Total liabilities 1,960 Net assets acquired $ 14,096 (1) Goodwill represents the expected synergies from combining FeedbackNow with Forrester as well as the value of the acquired workforce. (2) All of the intangible assets are finite-lived. The determination of the fair value of the finite-lived intangible assets required management judgment and the consideration of a number of factors. In determining the fair values, management primarily relied on income valuation methodologies, in particular discounted cash flow models. The use of discounted cash flow models required the use of estimates, including projected cash flows related to the particular asset, the useful lives of the particular assets, the selection of royalty and discount rates used in the models, and certain published industry benchmark data. In establishing the estimated useful lives of the acquired intangible assets, the Company relied primarily on the duration of the cash flows utilized in the valuation model. Of the $4.8 million assigned to intangible assets, $3.0 million was assigned to the technology asset class with a useful life of 6.5 years, $1.3 million to customer relationships with useful lives of 4.5 years to 7.5 years (with a weighted average amortization period of 6.1 years), and $0.5 million to trademarks with a useful life of 8.5 years. The weighted-average amortization period of all intangible assets is 4.8 years. The Company's financial statements include the operating results of FeedbackNow beginning on July 6, 2018, the date of acquisition. FeedbackNow's operating results and goodwill were reported within the Company's Research segment prior to the Company’s segment realignments (refer to Note 12 – Operating Segment and Enterprise Wide Reporting GlimpzIt On June 22, 2018, Forrester acquired substantially all of the assets of SocialGlimpz, Inc. (“GlimpzIt”), an artificial intelligence and machine-learning provider based in San Francisco. The acquisition is part of Forrester's plan to build a real-time CX cloud solution, integrating a range of inputs to help companies monitor and improve customer experience. Forrester intends to deploy the GlimpzIt technology to extend the analytics engine in Forrester’s planned real-time CX cloud . The total purchase price was approximately $1.3 million, which was paid in cash on the closing date. The acquired working capital was insignificant. The acquisition also required Forrester to pay up to an additional $0.3 million in cash, contingent on the achievement of certain employment conditions by key employees during the two year period from the acquisition date. This amount was recognized as compensation expense over the related service period. During 2020 and 2019, Forrester paid $0.2 million and $0.1 million, respectively as a result of the employment conditions being met. The purchase price was allocated as $0.7 million of goodwill and $0.6 million of an intangible asset representing technology, which is being amortized over its estimated useful life of 5 years. Goodwill was recorded within the Research segment prior to the Company’s segment realignments (refer to Note 12 – Operating Segment and Enterprise Wide Reporting for more information on the segment changes), Acquisition and Integration Costs Acquisition and integration costs consist of direct and incremental costs to acquire and integrate acquired companies. The company recognized $5.8 million, $8.9 million, and $3.8 million of acquisition and integration costs during 2020, 2019, and 2018, respectively. The costs primarily consisted of investment banker fees, legal fees, regulatory costs, accounting and tax professional fees, and costs of abandoning unused facilities. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 3 - Goodwill and Other Intangible Assets A summary of goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands): Research Segment Consulting Segment Product Segment SiriusDecisions Segment Total Balance at December 31, 2018 $ 72,647 $ — $ 12,518 $ — $ 85,165 Reassignment (1) 12,518 — (12,518 ) — — Acquisitions (2) 16,025 — — 142,544 158,569 Translation adjustments 121 — — 40 161 Balance at December 31, 2019 101,311 — — 142,584 243,895 Reassignment on January 1, 2020 (3) 130,179 — 12,405 (142,584 ) — Reassignment on May 1, 2020 (4) 4,195 8,143 (12,338 ) — — Translation adjustments 3,228 155 (67 ) — 3,316 Balance at December 31, 2020 $ 238,913 $ 8,298 $ — $ — $ 247,211 (1) In conjunction with the acquisition of SiriusDecisions, the Company realigned its management structure on January 1, 2019 into Research, Product, and SiriusDecisions from its prior structure of Research, Product, and Project Consulting. Goodwill was reassigned as of January 1, 2019 based on the relative fair values of the Research and Product reporting units. (2) The goodwill related to the acquisition of SiriusDecisions was allocated to the SiriusDecisions segment, except for the portion of goodwill representing revenue synergies that are expected to benefit the Research segment. (3) On January 1, 2020, the Company realigned its internal management and reporting as SiriusDecisions no longer operated under a separate management structure. As a result, the SiriusDecisions segment was eliminated (refer to Note 12 – Operating Segment and Enterprise Wide Reporting ). Goodwill was reassigned on January 1, 2020 based on the relative fair values of the product lines transferred to the Research and Product reporting units. (4) As described in the Company’s Form 8-K filed on April 2, 2020, Forrester’s Chief Product Officer resigned from the Company effective April 17, 2020. Subsequently, the Chief Product Officer position was eliminated and on May 1, 2020, the Company reorganized its operations to reflect three lines of business: Research, Consulting, and Events. As a result, the Product segment was eliminated (refer to Note 12 – Operating Segment and Enterprise Wide Reporting ). Goodwill was reassigned based on the relative fair values of product lines transferred to the Research, Consulting, and Events reporting units. No goodwill was reassigned to the Events reporting unit. Immediately prior to and after each reporting unit change described above, the Company performed an assessment of goodwill for all reporting units. On each reporting unit change date, the Company concluded that no impairments existed. Additionally, the Company performed its annual impairment testing as of November 30, 2020 utilizing a qualitative assessment to determine if it was more likely than not that the fair values of each of its reporting units was less than their respective carrying values and concluded that no impairments existed. As of December 31, 2020, the Company had no accumulated goodwill impairment losses and the Consulting reporting unit had a negative carrying value. A summary of Forrester’s intangible assets is as follows (in thousands): December 31, 2020 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 78,450 $ 17,277 $ 61,173 Technology 16,956 10,197 6,759 Trademarks 12,495 2,432 10,063 Total $ 107,901 $ 29,906 $ 77,995 December 31, 2019 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 109,825 $ 40,169 $ 69,656 Technology 16,661 7,051 9,610 Backlog 13,000 6,500 6,500 Trademarks 12,451 854 11,597 Total $ 151,937 $ 54,574 $ 97,363 Amortization expense related to intangible assets was approximately $19.7 million, $22.6 million, and $1.2 million during the years ended December 31, 2020, 2019, and 2018, respectively. Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands): 2021 $ 15,163 2022 13,230 2023 11,980 2024 9,936 2025 8,887 Thereafter 18,799 Total $ 77,995 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 4 – Debt In connection with the acquisition of SiriusDecisions, the Company entered into a $200.0 million Credit Agreement on January 3, 2019 (the “Closing Date”). The Credit Agreement provides for: (1) senior secured term loans in an aggregate principal amount of $125.0 million (the “Term Loans”) and (2) a senior secured revolving credit facility in an aggregate principal amount of $75.0 million (the “Revolving Credit Facility” and, together with the Term Loans, the “Facilities”). On the Closing Date, the full $125.0 million of the Term Loans and $50.0 million of the Revolving Credit Facility were used to finance a portion of the acquisition of SiriusDecisions and to pay certain fees, costs and expenses incurred in connection with the acquisition and the Facilities. The Facilities are scheduled to mature on January 3, 2024. The Facilities permit the Company to borrow incremental term loans and/or increase commitments under the Revolving Credit Facility in an aggregate principal amount up to $50.0 million, subject to approval by the administrative agent and certain customary terms and conditions. The Facilities can be repaid early, in part or in whole, at any time and from time to time, without premium or penalty, other than customary breakage reimbursement requirements for LIBOR based loans. The Term Loans must be prepaid with net cash proceeds of (i) certain debt incurred or issued by Forrester and its restricted subsidiaries and (ii) certain asset sales and condemnation or casualty events, subject to certain reinvestment rights. Amounts borrowed under the Facilities bear interest, at Forrester’s option, at a rate per annum equal to either: (i) LIBOR for the applicable interest period plus a margin that is between 1.75% and 2.50% based on Forrester’s consolidated total leverage ratio, or (ii) the alternate base rate plus a margin that is between 0.75% and 1.50% based on Forrester’s consolidated total leverage ratio. In addition, the Company pays a commitment fee between 0.25% and 0.35% per annum, based on Forrester’s consolidated total leverage ratio, on the average daily unused portion of the Revolving Credit Facility, payable quarterly, in arrears. The Term Loans require repayment of the outstanding principal balance in quarterly installments each year, with the balance repayable on the maturity date, subject to customary exceptions. The amount payable in each year as of December 31, 2020 is set forth in the table below (in thousands): 2021 $ 12,500 2022 12,500 2023 15,625 2024 68,750 Total remaining principal payments $ 109,375 The Revolving Credit Facility does not require repayment prior to maturity, subject to customary exceptions. In addition to financing the acquisition, proceeds from the Revolving Credit Facility can also be used towards working capital and general corporate purposes. Up to $5.0 million of the Revolving Credit Facility is available for the issuance of letters of credit, and any drawings under the letters of credit must be reimbursed within one business day. As of December 31, 2020, $0.9 million in letters of credit were issued under the Revolving Credit Facility. Forrester incurred $1.8 million in costs related to the Revolving Credit Facility, which are included in other assets on the Consolidated Balance Sheets. These costs are being amortized on a straight-line basis over the five-year Outstanding Borrowings The following table summarizes the Company’s total outstanding borrowings as of the dates indicated (in thousands): Description: December 31, 2020 December 31, 2019 Term loan facility (1) $ 109,375 $ 118,750 Revolving credit facility (1) (2) — 14,000 Principal amount outstanding (3) 109,375 132,750 Less: Deferred financing fees (1,576 ) (2,205 ) Net carrying amount $ 107,799 $ 130,545 (1) The contractual annualized interest rate as of December 31, 2020 on the Term loan facility was 2.1875%, which consisted of LIBOR of 0.1875% plus a margin of 2.0%. However, the Company has an interest rate swap contract that effectively converts the floating LIBOR base rates on a portion of the amounts outstanding to a fixed base rate. Refer to Note 6 – Derivatives and Hedging (2) The Company had $74.1 million of available borrowing capacity on the Revolving Credit Facility (not including the expansion feature) as of December 31, 2020. (3) The weighted average annual effective rate on the Company's total debt outstanding for the years ended December 31, 2020 and 2019 was 2.73% and 4.71%, respectively. The Facilities contain certain customary restrictive loan covenants, including among others, financial covenants that apply a maximum leverage ratio and minimum fixed charge coverage ratio. The negative covenants limit, subject to various exceptions, the Company’s ability to incur additional indebtedness, create liens on assets, merge, consolidate, liquidate or dissolve any part of the Company, sell assets, pay dividends or other payments in respect to capital stock, change fiscal year, or enter into certain transactions with affiliates and subsidiaries. The Company was in full compliance with the covenants as of December 31, 2020. The Facilities also contain customary events of default, representations, and warranties. All obligations under the Facilities are unconditionally guaranteed by each of the Company’s existing and future, direct and indirect, material wholly-owned domestic subsidiaries, other than certain excluded subsidiaries, and are collateralized by a first priority lien on substantially all tangible and intangible assets, including intellectual property, and all of the capital stock of the Company and its subsidiaries (limited to 65% of the voting equity of certain subsidiaries). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 5 – Leases The components of lease expense were as follows (in thousands): Year Ended Year Ended December 31, 2020 December 31, 2019 Operating lease cost $ 16,188 $ 15,005 Short-term lease cost 330 498 Variable lease cost 1,871 5,318 Sublease income (256 ) (205 ) Total lease cost $ 18,133 $ 20,616 Additional lease information is summarized in the following table (in thousands, except lease term and discount rate): Year Ended Year Ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,577 $ 10,953 Operating ROU assets obtained in exchange for lease obligations $ 12,200 $ 18,497 Weighted-average remaining lease term - operating leases (years) 6.4 6.4 Weighted-average discount rate - operating leases 4.6 % 5.1 % Future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows (in thousands): 2021 $ 15,425 2022 15,468 2023 15,070 2024 14,687 2025 12,700 Thereafter 21,109 Total lease payments 94,459 Less imputed interest (12,164 ) Present value of lease liabilities $ 82,295 Lease balances are as follows (in thousands): As of December 31, 2020 Operating lease ROU assets $ 69,296 Short-term operating lease liabilities (1) $ 11,972 Non-current operating lease liabilities 70,323 Total operating lease liabilities $ 82,295 (1) Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. The Company’s leases do not contain residual value guarantees or material restrictions or covenants, and all sublease transactions are not material. During the fourth quarter of 2020, the Company received a variable incentive payment of $3.5 million from one of its landlords to terminate the related office space lease early. This amount was recognized as a reduction in rent expense. During the year ended December 31, 2020, t he Company recorded $2.3 million of ROU asset impairments and $1.1 million of leasehold improvement impairments related to a facility lease from the SiriusDecisions acquisition that the Company no longer used as a result of the integration of SiriusDecisions. The leasehold improvements were originally recorded in property and equipment, net in the Consolidated Balance Sheets. The fair value of the asset group was determined using a discounted cash flow model, which required the use of estimates, including projected cash flows for the related assets, the selection of discount rate used in the model, and regional real estate industry data. The fair value of the asset group was allocated to the ROU asset and leasehold improvements based on their relative carrying values. The impairments are included in acquisition and integration costs in the Consolidated Statements of Operations. The Company did not have any lease impairments or abandonments during 2019 or 2018. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 6 – Derivatives and Hedging The Company enters into derivative contracts (an interest rate swap and foreign currency forwards) to mitigate the cash flow risk associated with changes in interest rates on its variable rate debt (refer to Note 4 – Debt Derivatives and Hedging , Interest Rate Swap During 2019, the Company entered into a single interest rate swap contract that matures in 2022, with an initial notional amount of $95.0 million. The notional amount of this interest rate swap at December 31, 2020 was $68.7 million. The Company pays a base fixed rate of 1.65275% and in return receives the greater of: (1) 1-month LIBOR, rounded up to the nearest 1/16 Fair Value Measurements The swap has been designated and accounted for as a cash flow hedge of the forecasted interest payments on the Company’s debt. As long as the swap continues to be a highly effective hedge of the designated interest rate risk, changes in the fair value of the swap are recorded in accumulated other comprehensive income (loss), a component of equity in the Consolidated Balance Sheets. Any ineffective portion of a change in the fair value of a hedge is recorded in earnings. As required under Topic 815, the swap’s effectiveness is assessed on a quarterly basis. Since its inception, and through December 31, 2020, the interest rate swap was considered highly effective. Accordingly, the entire negative fair value as of December 31, 2020 of $0.8 million (net of taxes) is recorded in accumulated other comprehensive loss. The Company expects $0.6 million of this loss, net of taxes, to be reclassified into earnings within the next 12 months. Realized gains or losses related to the interest rate swap are included as operating activities in the Consolidated Statement of Cash Flows. Foreign Currency Forwards The Company enters into a limited number of foreign currency forward exchange contracts to mitigate the effects of adverse fluctuations in foreign currency exchange rates on transactions entered into in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. These contracts generally have short durations and are recorded at fair value with both realized and unrealized gains and losses recorded in other income (expense), net in the Consolidated Statements of Operations because the Company does not designate these contracts as hedges for accounting purposes. During 2020, the Company entered into three foreign currency forward exchange contracts, all of which settled by December 31, 2020. Accordingly, as of December 31, 2020, there are no amounts recorded in the Consolidated Balance Sheets. The Company’s derivative counterparties are investment grade financial institutions. The Company does not have any collateral arrangements with its derivative counterparties and the derivative contracts do not contain credit risk related contingent features. The table below provides information regarding amounts recognized in the Consolidated Statements of Operations for derivative contracts for the periods indicated (in thousands): For the Year Ended December 31, Amount recorded in: 2020 2019 Interest expense (1) $ (858 ) $ — Other income (expense), net (2) (157 ) — Total $ (1,015 ) $ — (1) Consists of interest expense from the interest rate swap contract. (2) Consists of net realized losses on foreign currency forward contracts. The Company did not have any derivatives as of or during the year ended December 31, 2018. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 - Fair Value Measurements The Company has certain financial assets and liabilities which have been classified as either Level 1, 2, or 3 within the fair value hierarchy as described below. Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities. Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities. The following table represents the Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Measurements As of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 503 $ — $ — $ 503 Total Assets $ 503 $ — $ — $ 503 Liabilities: Interest rate swap (2) $ — $ (1,144 ) $ — $ (1,144 ) Total Liabilities $ — $ (1,144 ) $ — $ (1,144 ) Fair Value Measurements As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 2,354 $ — $ — $ 2,354 Total Assets $ 2,354 $ — $ — $ 2,354 Liabilities: Interest rate swap (2) $ — $ (144 ) $ — $ (144 ) Contingent purchase price (3) — — (2,511 ) (2,511 ) Total Liabilities $ — $ (144 ) $ (2,511 ) $ (2,655 ) (1) (2) Debt Derivatives and Hedging (3) During the years ended December 31, 2020 and 2019, the Company did not transfer assets or liabilities between levels of the fair value hierarchy. Additionally, there have been no changes to the valuation techniques for Level 2 or Level 3 liabilities. Level 3 activity consist s entirely of the contingent purchase price related to the acquisition of FeedbackNow (s ee Note 2 – Acquisitions ) . Changes in the fair value of Level 3 contingent consideration were as follows (in thousands): Contingent Consideration Balance at December 31, 2017 $ — Acquisition of FeedbackNow (1) (3,388 ) Fair value adjustment of contingent purchase price (2) (780 ) Foreign exchange effect (28 ) Balance at December 31, 2018 (4,196 ) Fair value adjustment of contingent purchase price (2) (68 ) Payment of contingent purchase price (3) 1,769 Foreign exchange effect (16 ) Balance at December 31, 2019 (2,511 ) Fair value adjustment of contingent purchase price (2) (22 ) Payment of contingent purchase price (4) 2,680 Foreign exchange effect (147 ) Balance at December 31, 2020 $ — (1) Refer to Note 2 – Acquisitions for a discussion of the fair value of the contingent purchase price as of the acquisition date. (2) Subsequent to the acquisition of FeedbackNow, the increases in the fair value of the contingent consideration were primarily due to the achievement of contract bookings during these periods. T he Monte Carlo simulation was used to determine the fair value and increases or decreases in the simulation’s inputs would have resulted in higher or lower fair value measurements. These amounts were recognized as acquisition and integration costs in the Consolidated Statements of Operations. (3) During the third quarter of 2019, the first year financial targets were met and $1.8 million was paid to the sellers during the same period. (4) During the third quarter of 2020, the second year financial targets were met and $2.7 million was paid to the sellers during the fourth quarter of 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 - Income Taxes Income before income taxes consists of the following (in thousands): Years Ended December 31, 2020 2019 2018 Domestic $ 7,237 $ (14,637 ) $ 17,718 Foreign 5,696 5,038 5,807 Total $ 12,933 $ (9,599 ) $ 23,525 The components of the income tax expense (benefit) are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Current: Federal $ 603 $ 618 $ 2,278 State 2,054 911 1,173 Foreign 1,963 2,399 1,763 Total current 4,620 3,928 5,214 Deferred: Federal 490 (1,454 ) 2,111 State (1,641 ) (2,005 ) 667 Foreign (526 ) (498 ) 153 Total deferred (1,677 ) (3,957 ) 2,931 Income tax expense (benefit) $ 2,943 $ (29 ) $ 8,145 A reconciliation of the federal statutory rate to Forrester’s effective tax rate is as follows: Years Ended December 31, 2020 2019 2018 Income tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax resulting from: State tax provision, net of federal benefit 2.6 8.3 6.2 Foreign tax rate differential (0.2 ) 0.4 (0.2 ) Stock option compensation 5.7 (1.2 ) (1.1 ) Withholding taxes 3.3 (3.5 ) 2.1 Non-deductible expenses 2.2 (9.8 ) 5.3 Change in valuation allowance (5.8 ) 2.3 — Foreign subsidiary income subject to U.S. tax (4.3 ) (7.4 ) — Change in tax legislation (1.9 ) (1.2 ) 1.9 Audit settlements — (8.3 ) — Other, net 0.2 (0.3 ) (0.6 ) Effective tax rate 22.8 % 0.3 % 34.6 % The increase in the effective tax rate during 2020 as compared to the prior year was primarily due to the resolution of an audit in 2019 that did not recur in 2020, utilization of valuation allowance on capital assets during 2020, a decrease of non-deductible expenses during 2020, and windfalls related to stock based compensation during 2019 that did not recur in 2020. The components of deferred income taxes are as follows (in thousands): As of December 31, 2020 2019 Non-deductible reserves and accruals $ 2,814 $ 2,743 Net operating loss and other carryforwards 8,719 13,049 Stock compensation 1,935 2,651 Lease liability 22,842 17,382 Gross deferred tax asset 36,310 35,825 Less - valuation allowance (1,237 ) (2,274 ) Sub-total 35,073 33,551 Other liabilities (751 ) (1,085 ) Depreciation and amortization (1,091 ) (1,567 ) Goodwill and intangible assets (27,319 ) (32,120 ) Operating lease right-of-use assets (19,201 ) (15,005 ) Deferred commissions (6,665 ) (5,706 ) Net deferred tax asset (liability) $ (19,954 ) $ (21,932 ) As of December 31, 2020 and 2019, long-term net deferred tax assets were $1.6 million and $1.0 million, respectively, and are included in other assets in the Consolidated Balance Sheets. Long-term net deferred tax liabilities were $21.5 million and $22.9 million, respectively, at December 31, 2020 and 2019, and are included in non-current liabilities in the Consolidated Balance Sheets. As of December 31, 2020, the Company has fully utilized its U.S. federal net operating loss carryforwards. The U.S. federal net operating loss carryforwards resulting from taxable years beginning after December 31, 2017 can be carried forward indefinitely and can be used to offset 80% of U.S. taxable income. The Company has foreign net operating loss carryforwards of approximately $27.6 million, which can be carried forward indefinitely. Approximately $3.4 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. As of December 31, 2020, the Company has U.S. federal and state capital loss carryforwards of $1.2 million, which expire in 2022. 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, 2020 and 2019, the Company maintained a valuation allowance of approximately $1.2 million and $2.3 million, respectively, primarily relating to U.S. capital losses from the Company’s investment in technology-related private equity funds, and from foreign net operating loss carryforwards from an acquisition. The following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2020, 2019, and 2018 (in thousands): 2020 2019 2018 Deferred tax valuation allowance at January 1 $ 2,274 $ 2,574 $ 2,686 Additions 52 30 74 Deductions (1,134 ) (356 ) (139 ) Change in tax legislation 2 — — Translation adjustments 43 26 (47 ) Deferred tax valuation allowance at December 31 $ 1,237 $ 2,274 $ 2,574 The Company will generally be free of additional U.S. federal tax consequences on additional unremitted foreign earnings that have been subject to U.S. tax primarily through GILTI or would be eligible for a dividends received deduction for earnings distributed after January 1, 2018. N o t w it h t a nd i n t h U . S t a x a ti o o t h e a oun t the Company i n t e n t c on ti nu t i nv e all of its unremitted earnings of $ million a w e l a the ca p it a i t h e ub i d i a r i e i nd e f i n it e l ou t i d o t h U . S. d no e xp ec t i n c u a n a dd iti on a r e l a t e t u c a oun t 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, 2020, 2019, and 2018 (in thousands): 2020 2019 2018 Unrecognized tax benefits at January 1 $ 345 $ 799 $ 806 Reductions for tax positions of prior years (344 ) (458 ) — Additions for tax positions of current year — — — Settlements — — — Translation adjustments 27 4 (7 ) Unrecognized tax benefits at December 31 $ 28 $ 345 $ 799 As of December 31, 2020, the total amount of unrecognized tax benefits totaled approximately $28 thousand, all of which, if recognized, would decrease our effective tax rate in a future period. The Company does not expect the liability for unrecognized tax benefits to change materially within the next 12 months due to expiration of certain statutes of limitation. 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, 2020, 2019, and 2018. Accrued interest and penalties were insignificant at December 31, 2020, 2019, and 2018. 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 2015, 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 2019, the Company recorded a $0.3 million tax expense to settle a foreign tax audit. As of December 31, 2020, the Company has one non-U.S. subsidiary under audit. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 9 - 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, liquidation preferences, and the number of shares constituting any series or designation of such series. Treasury Stock As of December 31, 2020, Forrester’s Board of Directors has authorized an aggregate $535.0 million to purchase common stock under the Company’s stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. As of December 31, 2020, the Company had repurchased approximately 16.3 million shares of common stock at an aggregate cost of $474.9 million. Dividends As a result of the acquisition of SiriusDecisions on January 3, 2019 (see Note 2 – Acquisitions) Debt Equity Plans The Company maintains the Forrester Research, Inc. Amended and Restated Equity Incentive Plan As of December 31, 2020, approximately 8,000 options remain outstanding and are fully vested under prior plans. Restricted Stock Units Restricted stock units represent the right to receive one share of Forrester common stock when the restrictions lapse and the vesting conditions are met. RSUs 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 are 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 2020, 2019, and 2018 was $35.15, $43.84, and $43.71, 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 $10.0 million, $8.2 million, and $9.1 million during 2020, 2019, and 2018, respectively. RSU activity for the year ended December 31, 2020 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2019 656 $ 42.94 Granted 360 35.15 Vested (275 ) 41.92 Forfeited (99 ) 43.02 Unvested at December 31, 2020 642 $ 38.99 Stock Options Stock option activity for the year ended December 31, 2020 is presented below (in thousands, except per share data and contractual term): Weighted - Weighted - Average Average Exercise Remaining Aggregate Number Price Per Contractual Intrinsic of Shares Share Term (in years) Value Outstanding at December 31, 2019 436 $ 35.62 Granted — — Exercised (90 ) 34.87 Forfeited (54 ) 37.70 Outstanding at December 31, 2020 292 $ 35.46 3.35 $ 1,880 Vested and Exercisable at December 31, 2020 292 $ 35.46 3.35 $ 1,880 The total intrinsic value of options exercised during 2020, 2019, and 2018 was $0.5 million, $1.5 million, and $3.3 million, respectively. Employee Stock Purchase Plan In May 2018, stockholders of the Company approved an amendment to the Company’s Amended and Restated Employee Stock Purchase Plan (the “Stock Purchase Plan”) The Stock Purchase Plan provides for the issuance of up to 1.1 million shares of common stock and as of December 31, 2020, 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 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: (1) 85% of the closing price of the common stock on the day that the purchase period commences, or (2) 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 February 29, 2020 47 $ 29.27 August 31, 2020 50 $ 30.14 February 28, 2019 25 $ 41.82 August 31, 2019 35 $ 29.64 Accumulated Other Comprehensive Income (Loss) (“AOCI/L”) The components of accumulated other comprehensive income (loss) are as follows (in thousands): Marketable Investments Interest Rate Swap Translation Adjustment Total AOCI/L Balance at December 31, 2017 $ (115 ) $ — $ (1,897 ) $ (2,012 ) Foreign currency translation (1) — — (3,257 ) (3,257 ) Reclassification of stranded tax effects from tax reform (26 ) — — (26 ) Unrealized gain before reclassification, net of tax of $(4) 12 — — 12 Reclassification of AOCI/L to income, net of tax of $(75) (2) 129 — — 129 Balance at December 31, 2018 — — (5,154 ) (5,154 ) Foreign currency translation (1) — — 401 401 Unrealized loss, net of tax of $40 — (104 ) — (104 ) Balance at December 31, 2019 — (104 ) (4,753 ) (4,857 ) Foreign currency translation (1) — — 4,884 4,884 Unrealized loss before reclassification, net of tax of $283 — (1,333 ) — (1,333 ) Reclassification of AOCI/L to income, net of tax of $(242) (3) — 616 — 616 Balance at December 31, 2020 $ — $ (821 ) $ 131 $ (690 ) (1) The Company does not record tax provisions or benefits for the net changes in foreign currency translation adjustments as it intends to permanently reinvest undistributed earnings of its foreign subsidiaries. (2) Reclassification is related to r ealized losses on sales of the Company’s available-for-sale securities and were recorded in gains on investments, net in the Consolidated Statements of Operations. (3) Reclassification is related to the Company’s interest rate swap (cash flow hedge) and was recorded in interest expense in the Consolidated Statements of Operations. Refer to Note 6 – Derivatives and Hedging . |
Employee Pension Plans
Employee Pension Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Pension Plans | Note 10 - 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 $7.6 million, $7.3 million, $5.0 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Non-Marketable Investments
Non-Marketable Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Non-Marketable Investments | Note 11 - Non-Marketable Investments At December 31, 2020 and 2019, the carrying value of the Company’s non-marketable investments, which were composed primarily of interests in technology-related private equity funds, was $0.6 million and $2.5 million, respectively, and is included in other assets in the Consolidated Balance Sheets. The Company’s investments are accounted for using the equity method as the investments are limited partnerships and the Company has an ownership interest in excess of 5%. Accordingly, the Company records its share of the investee’s operating results each period, which are included in gains on investments, net in the Consolidated Statement of Operations. The Company recorded $2.5 million and $0.6 million in gains from its non-marketable investments for the years ended December 31, 2020 and 2018, respectively, and gains were immaterial during 2019. The Company uses the cumulative earnings approach to classify distributions received from equity method investments. During the year ended December 31, 2020, $4.3 million was distributed from the funds to the Company. During the years ended December 31, 2019 and 2018, no distributions were received from the funds. |
Operating Segment and Enterpris
Operating Segment and Enterprise Wide Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment and Enterprise Wide Reporting | Note 12 - Operating Segment and Enterprise Wide Reporting On January 1, 2020, the Company realigned its internal management and reporting as SiriusDecisions no longer operated under a separate management structure. As described in the Company’s Form 8-K filed on April 2, 2020, Forrester’s Chief Product Officer resigned from the Company effective April 17, 2020. Subsequently, the Chief Product Officer position was eliminated and the Company reorganized its operations to reflect three lines of business: Research, Consulting, and Events. As a result of these changes, on May 1, 2020, the Company realigned its internal reporting into Research, Consulting, and Events. The realignments eliminated the Products and SiriusDecisions segments as the product lines and organizations supporting the related revenues began operating under the new management structure. Prior period amounts have been revised to conform to the current presentation. The Research segment includes the revenues of the Research, Connect, and Analytics products and the cost of the organizations responsible for developing and delivering these products. In addition, this segment includes Consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company’s research and analytics analysts. The costs of the product management organization responsible for product pricing and packaging, and the launch of new products, is included in this segment. The Consulting segment includes the revenues and the related costs of the Company’s consulting organization. The consulting organization delivers a majority of the Company’s consulting project revenue and certain advisory services. The Events segment includes the revenues and the costs of the organization responsible for developing and hosting in-person and virtual events. 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 excludes: 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, interest and other expense, 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 review or evaluate assets as part of segment performance. Accordingly, the Company does not identify or allocate assets by reportable segment. The following tables present information about reportable segments, including the Company’s disaggregation of revenue by product (in thousands): Research Segment Consulting Segment Events Segment Consolidated Year Ended December 31, 2020 Research revenues Research revenues $ 219,670 $ — $ — $ 219,670 Connect revenues 54,530 — — 54,530 Analytics revenues 20,285 — — 20,285 Total research revenues 294,485 — — 294,485 Consulting revenues 57,276 87,086 — 144,362 Events revenues — — 10,137 10,137 Total segment revenues 351,761 87,086 10,137 448,984 Segment expenses (110,843 ) (40,168 ) (8,231 ) (159,242 ) Selling, marketing, administrative and other expenses (248,105 ) Amortization of intangible assets (19,683 ) Acquisition and integration costs (5,779 ) Interest expense, other expense, and gains on investments (3,242 ) Income before income taxes $ 12,933 Research Segment Consulting Segment Events Segment Consolidated Year Ended December 31, 2019 Research revenues Research revenues $ 219,189 $ — $ — $ 219,189 Connect revenues 56,224 — — 56,224 Analytics revenues 23,322 — — 23,322 Total research revenues 298,735 — — 298,735 Consulting revenues 60,758 75,194 — 135,952 Events revenues — — 27,010 27,010 Total segment revenues 359,493 75,194 27,010 461,697 Segment expenses (120,882 ) (38,192 ) (18,968 ) (178,042 ) Selling, marketing, administrative and other expenses (253,163 ) Amortization of intangible assets (22,619 ) Acquisition and integration costs (8,948 ) Interest expense, other expense, and gains on investments (8,524 ) Loss before income taxes $ (9,599 ) Research Segment Consulting Segment Events Segment Consolidated Year Ended December 31, 2018 Research revenues Research revenues $ 157,112 $ — $ — $ 157,112 Connect revenues 51,377 — — 51,377 Analytics revenues 19,910 — — 19,910 Total research revenues 228,399 — — 228,399 Consulting revenues 56,863 58,842 — 115,705 Events revenues — — 13,471 13,471 Total segment revenues 285,262 58,842 13,471 357,575 Segment expenses (88,015 ) (30,957 ) (10,102 ) (129,074 ) Selling, marketing, administrative and other expenses (201,127 ) Amortization of intangible assets (1,162 ) Acquisition and integration costs (3,787 ) Interest expense, other income, and gains on investments 1,100 Income before income taxes $ 23,525 Net long-lived tangible assets by location as of December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 United States $ 24,645 $ 26,709 United Kingdom 261 578 Europe (excluding United Kingdom) 78 97 Asia Pacific 2,048 2,553 Total $ 27,032 $ 29,937 Revenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2020, 2019, and 2018 are as follows (dollars in thousands): 2020 2019 2018 United States $ 356,288 $ 362,867 $ 274,151 Europe (excluding United Kingdom) 34,897 32,585 29,741 United Kingdom 15,741 21,316 15,273 Canada 14,005 17,246 15,569 Asia Pacific 22,969 22,842 17,839 Other 5,084 4,841 5,002 Total $ 448,984 $ 461,697 $ 357,575 2020 2019 2018 United States 79 % 79 % 77 % Europe (excluding United Kingdom) 8 7 8 United Kingdom 4 4 4 Canada 3 4 4 Asia Pacific 5 5 5 Other 1 1 2 Total 100 % 100 % 100 % |
Certain Balance Sheet Accounts
Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Certain Balance Sheet Accounts | Note 13 - Certain Balance Sheet Accounts Property and Equipment: Property and equipment as of December 31, 2020 and 2019 is recorded at cost less accumulated depreciation and consists of the following (in thousands): 2020 2019 Computers and equipment $ 17,191 $ 18,337 Computer software 35,476 30,812 Furniture and fixtures 10,466 10,365 Leasehold improvements 31,517 32,935 Total property and equipment 94,650 92,449 Less accumulated depreciation (67,618 ) (62,512 ) Total property and equipment, net $ 27,032 $ 29,937 The Company incurs costs to develop or obtain internal use computer software used for its operations, and certain of these costs meeting the criteria in ASC 350 – Internal Use Software Summary of Significant Accounting Policies Accrued Expenses and Other Current Liabilities: Accrued expenses and other current liabilities as of December 31, 2020 and 2019 consist of the following (in thousands): 2020 2019 Payroll and related benefits $ 43,575 $ 45,340 Taxes 8,324 5,320 Lease liability 11,972 12,208 Other 12,749 16,989 Total $ 76,620 $ 79,857 Non-Current Liabilities: Non-current liabilities as of December 31, 2020 and 2019 consist of the following (in thousands): 2020 2019 Deferred tax liability $ 21,526 $ 22,884 Other 1,559 1,025 Total $ 23,085 $ 23,909 Allowance for Doubtful Accounts: A rollforward of the allowance for doubtful accounts as of and for the years ended December 31, 2020, 2019, and 2018 is as follows (in thousands): 2020 2019 2018 Balance, beginning of year $ 628 $ 359 $ 155 Cumulative effect adjustment of adopting Topic 326 (1) 218 — — Provision for doubtful accounts 721 1,246 567 Write-offs (850 ) (987 ) (356 ) Translation Adjustments (9 ) 10 (7 ) Balance, end of year $ 708 $ 628 $ 359 (1) Topic 326 was adopted on January 1, 2020. Refer to Note 1 – Summary of Significant Accounting Policies for a discussion on the adoption. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | Note 14 — Contingencies From time to time, the Company may be subject to legal proceedings and civil and regulatory claims that arise in the ordinary course of its business activities. Regardless of the outcome, litigation can have a material adverse effect on the Company because of defense and settlement costs, diversion of management resources, and other factors. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Forrester Research, Inc. is a global independent research and advisory firm. The Company helps leaders across technology, marketing, customer experience, product and sales functions use customer obsession to accelerate growth. Through Forrester’s proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work, navigate change, and put their customers at the center of their leadership, strategy, and operations. The Company’s unique insights are grounded in annual surveys of more than 675,000 consumers, business leaders, and technology leaders worldwide, rigorous and objective research methodologies, over 45 million real-time feedback votes, and the shared wisdom of our clients. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-K. The Company’s fiscal year is the twelve months from January 1 through December 31 and all references to 2020, 2019, and 2018 refer to the fiscal year unless otherwise noted. Principles of Consolidations 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. Reclassification Due to the Company’s operating segment realignments during 2020 (refer to Note 12 – Operating Segments and Enterprise Wide Reporting Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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, leases, valuation of goodwill, intangible and other long-lived assets and acquired assets and liabilities from business combinations, ongoing impairment reviews of |
Liquidity and Impact of COVID-19 | Liquidity and Impact of COVID-19 The COVID-19 pandemic significantly affected the Company beginning in March 2020 primarily through lower contract bookings and a reduction in revenues from the conversion of the Company’s events from in-person to virtual events throughout 2020. While the duration and severity of the pandemic is uncertain, the Company did experience a rebound in contract bookings in the fourth quarter of 2020 and expects that trend to continue in 2021. The Company’s events business continues to be negatively affected by the pandemic, and the Company has announced that all events in the first half of 2021 will be held as virtual events. The Company hopes to hold its events during the second half of 2021 as hybrid events, consisting of both in-person and virtual experiences. The extent to which the COVID-19 pandemic ultimately impacts the Company’s business, financial condition, results of operations, cash flows, and liquidity may differ from the Company’s current estimates due to inherent uncertainties regarding the duration and further spread of the outbreak, its severity, actions taken to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. During 2020, the Company implemented several cost-reduction measures that include reductions to travel, new hiring, and employee incentive compensation programs. These measures, excluding travel restrictions in the first half of 2021, have essentially been restored for 2021. The Company will continue to proactively respond to the situation and may take further actions that alter the Company’s business operations as may be required by governmental authorities, or that the Company determines are in the best interests of its employees and customers. As of December 31, 2020 , the Company is in compliance with its financial covenants under its c redit a greement (refer to Note 4 – Debt ). The Company currently forecasts that it will be in compliance with its financial covenants for at least one year from the issuance of these financial statements. If the impact of COVID-19 is more severe than currently forecasted this may impact the Company’s ability to comply with its financial covenants which could have a material adverse effect on the Company. The Company assessed certain accounting estimates that generally require consideration of forecasted financial information in context with the information reasonably available to it and the unknown future impacts COVID-19 as of December 31, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for expected credit losses, the carrying value of goodwill, intangible and other long-lived assets, valuation allowances for tax assets, and revenue recognition. During 2020, the Company recorded $2.3 million of right-of-use asset impairments and $1.1 million of leasehold impairments related to a lease of a facility that the Company no longer uses as a result of the integration of a recent acquisition (refer to Note 5 – Leases |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments The allowance for expected credit losses on accounts receivable for the twelve months ended December 31, 2020 is summarized as follows (in thousands): Total Allowance Balance at December 31, 2019 $ 628 Cumulative effect adjustment of adopting Topic 326 218 Provision for expected credit losses 721 Write-offs (850 ) Translation adjustments (9 ) Balance at December 31, 2020 $ 708 When evaluating the adequacy of the allowance for expected credit losses, the Company makes judgments regarding the collectability of accounts receivable based, in part, on the Company’s historical loss rate experience, customer concentrations, management’s expectations of future losses as informed by current economic conditions, and changes in customer payment terms. If the expected 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. If the expected financial condition of the Company’s customers were to improve, the allowances may be reduced accordingly. The Company adopted the guidance in ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment The Company adopted the guidance in ASU No. 2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . Fair Value Measurement Fair Value Measurements The Company adopted the guidance in ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . internal-use software (and hosting arrangements that include an internal-use software license). The adoption of this standard did not have a material impact on the Company’s financial position or results of operations . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements On January 1, 2019, the Company adopted Topic 842 using the modified retrospective method in which prior periods are not adjusted and the cumulative effect of applying the standard is recorded at the date of initial application. Adoption of the standard did not result in the Company recording a cumulative effect adjustment. The effect of adopting Topic 842 included recording operating lease right-of-use (“ROU”) assets of $53.3 million, operating lease liabilities of $60.8 million, and the elimination of deferred rent of $7.5 million. Adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. The Company elected the package of practical expedients permitted under Topic 842 which allows the carry forward of the historical lease classification for all leases that existed as of the adoption date. In addition, the Company elected to exempt short term leases from recognition of ROU assets and lease liabilities and elected not to separate lease and non-lease components within its leases. The Company adopted the guidance in ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, The Company adopted the guidance in ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, The Company adopted the guidance in ASU No. 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business The Company elected to adopt the guidance in ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Other Assets and Deferred Costs-Contracts with Customers On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method. Under this method, the reported results for 2018 reflect the application of Topic 606, while the reported results for prior periods were prepared under the guidance of ASU No. 2009-13, Revenue Recognition (Topic 605) The effect of adopting Topic 606 included a $7.8 million reduction in deferred revenue, primarily related to prepaid performance obligations expected to expire in 2018 and 2019 that would have been recognized in 2017 under the new guidance; a decrease of $5.5 million in prepaid expenses and other current assets related to deferred survey costs that would have been expensed as incurred in 2017 under the new guidance and the current tax impact of the cumulative effect; an increase of $0.9 million in deferred commissions related to the capitalization of fringe benefits as incremental costs to obtain customer contracts under the new guidance; and an increase of $ 0.6 million in other assets for the deferred tax effect of the cumulative effect. Retained earnings increased by $ 3.8 million as a net result of these adjustments. |
Fair Value Measurements | Fair Value Measurements The carrying amounts reflected in the Consolidated Balance Sheets for cash, accounts receivable, accounts payable, and accrued expenses (excluding contingent consideration discussed in Note 2 – Acquisitions Debt Additionally, the Company has certain financial assets and liabilities recorded at fair value at each balance sheet date, including cash equivalents and a derivative contract for an interest rate swap, in accordance with the accounting standards for fair value measurements. Refer to Note 7 – Fair Value Measurements |
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 liquidated its entire portfolio of marketable investments in December of 2018 to fund the acquisition of SiriusDecisions. Forrester previously accounted for all marketable investments as available-for-sale securities and as such, the marketable investments were 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 were included in earnings and were determined using the specific identification method. The Company conducted periodic reviews to identify and evaluate each investment that had an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required under the accounting standards. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, were recorded, net of tax, in accumulated other comprehensive loss. During the year ended December 31, 2018, the Company did not record any other-than-temporary impairment losses on its available-for-sale securities. Realized losses on sales of the Company’s available-for-sale securities were $0.2 million for the year ended December 31, 2018 and were recorded in gains on investments, net in the Consolidated Statements of Operations. |
Presentation of Restricted Cash | Presentation of Restricted Cash The following table summarizes the end-of-period cash and cash equivalents from the Company's Consolidated Balance Sheets and the total cash, cash equivalents and restricted cash as presented in the accompanying Consolidated Statements of Cash Flows (in thousands). For the Year Ended December 31, 2020 2019 Cash and cash equivalents $ 90,257 $ 67,904 Restricted cash classified in (1): Prepaid expenses and other current assets 395 1,250 Other assets — 38 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 90,652 $ 69,192 (1) Restricted cash consists of collateral required for letters of credit and credit card processing outside of the U.S. The short-term or long-term classification regarding the collateral for the letters of credit is determined in accordance with the expiration of the underlying lease as the letters of credit are non-cancellable while the leases are in effect. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject Forrester to concentrations of credit risk are principally cash, cash equivalents, accounts receivable, an interest rate swap contract, and foreign currency forward exchange contracts. The Company limits its risk exposure by having its cash, cash equivalents, interest rate swap and foreign currency forward exchange contracts with large commercial banks and by diversif ying counterparties. No single customer accounted for greater than 3 % of revenues or 3 % of accounts receivable in any of the periods presented. Forrester does not have any off-balance sheet arrangements. |
Business Acquisitions | Business Acquisitions Forrester accounts for business combinations in accordance with the acquisition method of accounting as prescribed by FASB ASC Topic 805, Business Combinations In 2019, Forrester acquired SiriusDecisions, Inc. In 2018, Forrester acquired S.NOW SA (which operates as “FeedbackNow”) and SocialGlimpz, Inc. (which operates as “GlimpzIt”). Refer to Note 2 – Acquisitions |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair values of the tangible and identifiable intangible net assets acquired. Goodwill is not amortized; however, it is required to be tested for impairment annually, which requires assessment of the potential impairment at the reporting unit level. Testing for impairment is also required on an interim basis if an event or circumstance indicates it is more likely than not an impairment loss has been incurred. When performing an impairment assessment, the Company either uses a qualitative assessment, to determine if it is more likely than not that the estimated fair value of any reporting unit is less than its carrying amount, or a quantitative analysis, to determine and compare the fair value of each reporting unit to its carrying value, or a combination of both. An impairment loss is recognized to the extent that the carrying amount of goodwill of any reporting unit exceeds its estimated fair value. Absent an event that indicates a specific impairment may exist, the Company has selected November 30th as the date for performing the annual goodwill impairment test. Goodwill impairment charges have not been required for the years ended December 31, 2020, 2019 and 2018. |
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 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. The Company recorded $3.4 million of long-lived asset impairment charges during 2020 (refer to Note 5 – Leases |
Non-Current Liabilities | Non-Current Liabilities The Company records deferred tax liabilities and other liabilities that are expected to be settled over a period that exceeds one year as non-current liabilities. |
Foreign Currency | Foreign Currency The functional currency 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 recorded as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. 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 (expense), net in the Consolidated Statements of Operations. Forrester recorded $0.6 million, $0.9 million, and $0.6 million of foreign exchange losses during 2020, 2019, and 2018, respectively. |
Revenue | Revenue The Company generates all of its revenues from contracts with customers, which totaled $449.0 million for the year ended December 31, 2020. The Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation ( s ) in the contract; and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government. The Company accounts for a contract when it has approval and commitment from both parties, the fees, payment terms and rights of the parties regarding the products or services to be transferred are identified, the contract has commercial substance, and collectability of the consideration expected to be transferred is probable. The Company applies judgment in determining the customer’s ability and intention to pay for services expected to be transferred, which is based on factors including the customer’s payment history, management’s ability to mitigate exposure to credit risk (for example, requiring payment in advance of the transfer of products or services, or the ability to stop transferring promised products or services in the event a customer fails to pay consideration when due), and experience selling to similarly situated customers. Since the transaction price is fixed and defined as part of entering into a contract, and generally does not change, variable consideration is insignificant. Performance obligations within a contract are identified based on the products and services promised to be transferred in the contract. When a contract includes more than one promised product or service, the Company must apply judgment to determine whether the promises represent multiple performance obligations or a single, combined performance obligation. This evaluation requires the Company to determine if the promises are both capable of being distinct, where the customer can benefit from the product or service on its own or together with other resources readily available, and are distinct within the context of the contract, where the transfer of products or services is separately identifiable from other promises in the contract. When both criteria are met, each promised product or service is accounted for as a separate performance obligation. In cases where the promises are distinct, the Company is further required to evaluate if the promises are a series of products and services that are substantially the same and have the same pattern of transfer to the customer (referred to as the “series” guidance). When the Company determines that promises meet the series guidance, they are accounted for as a single, combined performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative basis according to their standalone selling prices. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the Company does not have a history of selling a performance obligation, management applies judgment to estimate the standalone selling price, taking into consideration available information, including market conditions, factors considered to set list prices, pricing of similar products, and internal pricing objectives. The corresponding allocated revenues are recognized when (or as) the performance obligations are satisfied, as discussed further below. Research revenues Research revenues consist primarily of subscriptions to Research, Connect, and Analytics products. The majority of Research revenues are annual subscriptions to our research, including access to all or a designated portion of our research and, depending on the type of license, unlimited analyst inquiry and unlimited participation in Forrester webinars, all of which are delivered throughout the contract period. The Company has concluded that these promises represent a stand ready obligation to provide a daily information service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these subscriptions meet the requirements of the series guidance and are each accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term, using an output measure of time elapsed. Certain of the Research products include advisory services or an Event ticket, which are accounted for as a separate performance obligation and are recognized at the point in time the service is completed, the final deliverable is transferred to the customer, or the Event occurs. Research revenues also include sales of electronic reprints, which are written research documents prepared by Forrester’s analysts and hosted via an on-line platform. Reprints include a promise to deliver a customer-selected research document and certain usage data provided through the on-line platform, which represents two performance obligations. The Company satisfies the performance obligation for the research document by providing access to the electronic reprint and accordingly recognizes revenue at that point in time. The Company satisfies the performance obligation for the data portion of the reprint on a daily basis and accordingly recognizes revenue over time. The majority of Connect revenues are the Company’s Leadership Board product which includes access to the Research offering, access to a private forum with other Leadership Board member peers, access to a Forrester advisor, member-generated content, and one Event ticket. The Company has concluded that all these promises, other than the Event ticket, represent a stand ready obligation to provide a daily information and peer service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these promises meet the requirements of the series guidance and are accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term, using an output measure of time elapsed. The Event ticket is accounted for as a separate performance obligation and is recognized when the Event occurs. Analytics revenues are primarily annual subscriptions to access designated survey data products and typically include an analytics client manager, all of which are delivered throughout the contract period. For Analytics subscriptions, the Company has concluded that these promises represent a stand ready obligation to provide a daily data service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these subscriptions meet the requirements of the series guidance and are accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term , using an output measure of time elapsed. Certain of the Analytics products include advisory services which are accounted for as a separate performance obligation and are recognized at the point in time the service is completed or the final deliverable is transferred to the customer , which is when the customer has received the benefit(s) of the service . Consulting revenues Consulting revenues consists of sales of consulting projects and advisory services. Consulting project revenues consist of the delivery of focused insights and recommendations that assist customers with their challenges in developing and executing strategies around technology, customer experience, and digital transformation. Projects are fixed-fee arrangements that are generally completed over two weeks Advisory services revenues are short-term presentations or knowledge sharing sessions (which can range from one hour to two days), such as speeches and advisory days. Each is a promise for a Forrester analyst to deliver a deeper understanding of Forrester’s published research and represents a single performance obligation. Revenue is recognized at the point in time the service is completed or the final deliverable is transferred to the customer, which is when the customer has received the benefit(s) of the service. Events revenues Events revenues consist of either ticket or sponsorship sales for Forrester-hosted in-person and virtual events. Each is a single promise that either allows entry to, or grants the right to promote a product or service at, a specific event. The Company concluded that each of these represents a single performance obligation. The Company recognizes revenue at the completion of the Event, which is the point in time when the customer has received the benefit(s) from attending or sponsoring the Event. Prepaid performance obligations (including Event tickets, reprints, consulting projects, and advisory services) on non-cancellable contracts that the Company estimates will expire unused are recognized in proportion to the pattern of related rights exercised by the customer. This assessment requires judgment, including estimating the percentage of prepaid rights that will go unexercised and anticipating the impact that future changes to products, pricing, and customer engagement will have on actual expirations. The Company updates estimates used to recognize unexercised rights on a quarterly basis. Refer to Note 12 – Operating Segment and Enterprise Wide Reporting Contract Modifications The Company considers a contract modification to exist when a mutually agreed upon change creates new, or updates existing, enforceable rights and obligations. The majority of the Company’s contract modifications result in additional or remaining distinct products and services and are treated on a prospective basis. Under the prospective method, the transaction price is updated to combine the unrecognized amount as of the modification date and the additional transaction price from the modification. This amount is then re-allocated to the remaining distinct performance obligations and recognized accordingly. Consulting contracts can be modified to update the scope of the services purchased. Since a consulting project is a single performance obligation that is only partially satisfied at the modification date, the updated project requirements are not distinct and the modification is accounted for as part of the existing contract. The effect of the modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either an increase or decrease) on a cumulative catch-up basis. For the year ended December 31, 2020, the Company recorded an immaterial amount of cumulative catch-up adjustments. |
Accounts Receivable | Accounts Receivable Accounts receivable includes amounts billed and currently due from customers. Since the only condition for payment of our invoices is the passage of time, the Company records a receivable on the date the invoice is issued. Also included in accounts receivable are unbilled amounts resulting from revenue exceeding the amount billed to the customer, where the right to payment is unconditional. If the right to payment for services performed was conditional on something other than the passage of time, the unbilled amount would be recorded as a separate contract asset. There were no contract assets as of December 31, 2020. The majority of the Company’s contracts are non-cancellable. However, for contracts that are cancellable by the customer, the Company does not record a receivable when it issues an invoice. The Company records accounts receivable on these contracts only up to the amount of revenue earned but not yet collected. In addition, since the majority of the Company’s contracts are for a duration of one year and payment is expected within one year from the transfer of products and services, the Company does not adjust its receivables or transaction price for the effects of a significant financing component. |
Deferred Revenue | Deferred Revenue The Company refers to contract liabilities as deferred revenue on the Consolidated Balance Sheets. Payment terms in the Company’s customer contracts vary, but generally require payment in advance of fully satisfying the performance obligation(s). Deferred revenue consists of billings in excess of revenue recognized. Similar to accounts receivable, the Company does not record deferred revenue for unpaid invoices issued on a cancellable contract. During the years ended December 31, 2020 and 2019, the Company recognized approximately $153.2 million and $147.2 million of revenue, respectively, related to its deferred revenue balance at January 1 of each such year. To determine revenue recognized in the current period from deferred revenue at the beginning of the period, the Company first allocates revenue to the individual deferred revenue balance outstanding at the beginning of the period, until the revenue equals that balance. Approximately $369.8 million of revenue is expected to be recognized during the next 24 months from remaining performance obligations as of December 31, 2020. |
Cost To Obtain Contracts | Cost to Obtain Contracts The Company capitalizes commissions paid to sales representatives and related fringe benefits costs that are incremental to obtaining customer contracts. These costs are included in deferred commissions on the Consolidated Balance Sheets. The judgments made in determining the amount of costs incurred include the types of costs to capitalize and whether the costs are in fact incremental. The Company elected the practical expedient to account for these costs at a portfolio level as the Company’s contracts are similar in nature and the amortization model used closely matches the amortization expense that would be recognized on a contract-by-contract basis. Costs to obtain a contract are amortized to earnings over the initial contract term, which is the same period the related revenue is recognized. Amortization of the expense related to deferred commissions was $40.0 million, $36.0 million, and $32.2 million for the years ended December 31, 2020, 2019, and 2018, respectively, and is recorded in selling and marketing expenses in the Consolidated Statements of Operations |
Leases | Leases The Company determines whether an arrangement is a lease at inception of the arrangement. The Company accounts for a lease when it has the right to control the leased asset for a period of time while obtaining substantially all of the assets’ economic benefits. All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease ROU assets and non-current operating lease liabilities are included as individual line items on the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The discount rate used to determine the present value of the lease payments is the Company’s incremental borrowing rate based on the information available at lease inception, as generally an implicit rate in the lease is not readily determinable. An operating lease ROU asset includes all lease payments, lease incentives and initial direct costs incurred. Some of the Company’s leases include options to extend or terminate the lease. When determining the lease term, these options are included in the measurement and recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option(s). The Company considers various economic factors when making this determination, including, but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, and specific characteristics unique to a particular lease. Subsequent to entering into a lease arrangement, the Company reassesses the certainty of exercising options to extend or terminate a lease. When it becomes reasonably certain that the Company will exercise an option that was not included in the lease term, the Company accounts for the change in circumstances as a lease modification, which results in the remeasurement of the ROU asset and lease liability as of the modification date. Lease expense for operating leases is recognized on a straight-line basis over the lease term based on the total lease payments (which include initial direct costs and lease incentives). The expense is included in operating expenses in the Consolidated Statements of Operations. The Company’s lease agreements generally contain lease and non-lease components. Non-lease components are fixed charges stated in an agreement and primarily include payments for parking at the leased office facilities. The Company accounts for the lease and fixed payments for non-lease components as a single lease component under Topic 842, which increases the amount of the ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets and are not material. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2020, 2019, and 2018 was $0.7 million, $1.3 million, and $0.6 million, respectively. These expenses consisted primarily of online marketing and is included in selling and marketing expense in the Consolidated Statements of Operations. |
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. Forfeitures are recognized as they occur and all income tax effects related to settlements of share-based payment awards are reported in earnings as an increase or decrease to income tax expense. All income tax-related cash flows resulting from share-based payments are reported as operating activities in the Consolidated Statements of Cash Flows and cash paid by directly withholding shares for tax withholding purposes is classified as a financing activity. Stock-based compensation expense was recorded in the following expense categories (in thousands): Years Ended December 31, 2020 2019 2018 Cost of services and fulfillment $ 6,156 $ 6,627 $ 4,329 Selling and marketing 1,751 1,768 1,065 General and administrative 2,970 3,289 2,906 Total $ 10,877 $ 11,684 $ 8,300 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 (no options were granted in 2020, 2019, or 2018): Years Ended December 31, 2020 2019 2018 Average risk-free interest rate 0.12 % 1.89 % 1.90 % Expected dividend yield 0.0 % 0.0 % 1.9 % Expected life 0.5 Years 0.5 Years 0.5 Years Expected volatility 93 % 30 % 23 % Weighted average fair value $ 14.57 $ 8.29 $ 9.13 Prior to the suspension of the quarterly dividend program in November 2018, dividend yields were based on the 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 is based on the U.S. Treasury Constant Maturity rate with an equivalent remaining term. The expected term calculation is based upon the option period of the employee stock purchase plan. The unamortized fair value of stock-based awards as of December 31, 2020 was $20.1 million with a weighted average remaining recognition period of 2.8 years. |
Depreciation and Amortization | Depreciation and Amortization Forrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over their estimated useful lives of its 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 their estimated useful lives as follows: Estimated Useful Life Customer relationships 5 to 9 Years Technology 1 to 8 Years Backlog 2 Years Trademarks 7 to 9 Years |
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 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 (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the basic weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) 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 the vesting of restricted stock units. Basic and diluted weighted average common shares are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Basic weighted average common shares outstanding 18,827 18,492 18,091 Weighted average common equivalent shares 108 — 289 Diluted weighted average common shares outstanding 18,935 18,492 18,380 Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive 326 1,099 8 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Finance Reporting |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Allowance for Expected Credit Losses on Accounts Receivable | The allowance for expected credit losses on accounts receivable for the twelve months ended December 31, 2020 is summarized as follows (in thousands): Total Allowance Balance at December 31, 2019 $ 628 Cumulative effect adjustment of adopting Topic 326 218 Provision for expected credit losses 721 Write-offs (850 ) Translation adjustments (9 ) Balance at December 31, 2020 $ 708 |
Summary of End-of-period Cash and Cash Equivalents and Cash, Cash Equivalents and Restricted Cash from Financial Statements | The following table summarizes the end-of-period cash and cash equivalents from the Company's Consolidated Balance Sheets and the total cash, cash equivalents and restricted cash as presented in the accompanying Consolidated Statements of Cash Flows (in thousands). For the Year Ended December 31, 2020 2019 Cash and cash equivalents $ 90,257 $ 67,904 Restricted cash classified in (1): Prepaid expenses and other current assets 395 1,250 Other assets — 38 Cash, cash equivalents and restricted cash shown in statement of cash flows $ 90,652 $ 69,192 (1) Restricted cash consists of collateral required for letters of credit and credit card processing outside of the U.S. The short-term or long-term classification regarding the collateral for the letters of credit is determined in accordance with the expiration of the underlying lease as the letters of credit are non-cancellable while the leases are in effect. |
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, 2020 2019 2018 Cost of services and fulfillment $ 6,156 $ 6,627 $ 4,329 Selling and marketing 1,751 1,768 1,065 General and administrative 2,970 3,289 2,906 Total $ 10,877 $ 11,684 $ 8,300 |
Shares Subject to Employee Stock Purchase Plan Valuation Assumptions | 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 (no options were granted in 2020, 2019, or 2018): Years Ended December 31, 2020 2019 2018 Average risk-free interest rate 0.12 % 1.89 % 1.90 % Expected dividend yield 0.0 % 0.0 % 1.9 % Expected life 0.5 Years 0.5 Years 0.5 Years Expected volatility 93 % 30 % 23 % Weighted average fair value $ 14.57 $ 8.29 $ 9.13 |
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 their estimated useful lives of its 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, Estimated 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 their estimated useful lives as follows: Estimated Useful Life Customer relationships 5 to 9 Years Technology 1 to 8 Years Backlog 2 Years Trademarks 7 to 9 Years |
Schedule of Basic and Diluted Weighted Average Common Shares | Basic and diluted weighted average common shares are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Basic weighted average common shares outstanding 18,827 18,492 18,091 Weighted average common equivalent shares 108 — 289 Diluted weighted average common shares outstanding 18,935 18,492 18,380 Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive 326 1,099 8 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SiriusDecisions, Inc [Member] | |
Summary of Fair Value of Aggregate Consideration Paid or Payable | The following table summarizes the fair value of the aggregate consideration paid for SiriusDecisions (in thousands): Cash paid at close (1) $ 246,801 Working capital adjustment (2) (1,259 ) Total $ 245,542 (1) The cash paid at close represents the gross contractual amount paid. Net cash paid, which accounts for the cash acquired of $7.9 million and the working capital adjustment of $1.3 million , was $237.7 million and is reflected as an investing activity in the Consolidated Statements of Cash Flows. (2) |
Summary of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed for the acquisition of SiriusDecisions (in thousands): Assets: Cash and cash equivalents $ 7,858 Accounts receivable 19,237 Prepaids and other current assets 3,660 Property and equipment 4,169 Goodwill (1) 158,569 Intangible assets (2) 115,000 Other assets 418 Total assets 308,911 Liabilities: Accounts payable and other current liabilities 8,924 Deferred revenue 26,143 Deferred tax liability 26,226 Long-term deferred revenue 1,037 Other long-term liabilities 1,039 Total liabilities 63,369 Net assets acquired $ 245,542 (1) Goodwill represents the expected revenue and cost synergies from combining SiriusDecisions with Forrester as well as the value of the acquired workforce. (2) All of the intangible assets are finite-lived. The determination of the fair value of the finite-lived intangible assets required management judgment and the consideration of a number of factors. In determining the fair values, management primarily relied on income valuation methodologies, in particular discounted cash flow models, and replacement cost valuation methodologies. The discounted cash flow models required the use of estimates, including projected cash flows related to the particular asset, the useful lives of the particular assets, the selection of royalty and discount rates used in the models, and certain published industry benchmark data. The replacement cost methodology required the use of estimates in determining the costs to replace the assets and the amount of obsolescence existing at the time of the acquisition. In establishing the estimated useful lives of the acquired intangible assets, the Company relied primarily on the duration of the cash flows utilized in the valuation model. Of the $115.0 million assigned to intangible assets, $13.0 million was assigned to the technology asset class with useful lives of 1 to 8 years (with a weighted average amortization period of 3.2 years), $13.0 million to backlog with a useful life of 2 years, $77.0 million to customer relationships with a useful life of 9.25 years, and $12.0 million to trademarks with an original useful life of 15.5 years. The weighted-average amortization period of all intangible assets was originally 8.4 years. |
Schedule of Unaudited Pro Forma Financial Information | Years Ended December 31, 2019 2018 Pro forma total revenue $ 472,810 $ 438,049 Pro forma net income (loss) $ 733 $ (10,069 ) |
FeedbackNow [Member] | |
Summary of Fair Value of Aggregate Consideration Paid or Payable | The following table summarizes the fair value of the aggregate consideration payable for FeedbackNow as of the acquisition date (in thousands): Cash paid at close (1) $ 8,425 Working capital adjustment (2) 798 Indemnity holdback (3) 1,485 Contingent purchase price (4) 3,388 Total $ 14,096 (1) The cash paid at close represents the gross contractual amount paid. Net cash paid, which accounts for the cash acquired of $0.5 million, was $8.0 million and is reflected as an investing activity in the Consolidated Statements of Cash Flows. (2) Represents the amount payable to the sellers based upon working capital as defined, and was paid to the sellers in 2019. (3) $1.0 million and $0.5 million of the holdback was paid during 2020 and 2019, respectively. (4) The acquisition of FeedbackNow included a contingent consideration arrangement that required additional consideration to be paid to the sellers based on the financial performance of FeedbackNow during the two-year period subsequent to the closing date. The fair value of this contingent consideration arrangement on the acquisition date was $3.4 million, which was recognized as purchase price. $2.7 million and $1.8 million was paid during 2020 and 2019, respectively, as a result of FeedbackNow meeting the financial performance targets. Refer to Note 7 – Fair Value Measurements for further discussion. |
Summary of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed for the acquisition of FeedbackNow (in thousands): Assets: Cash $ 463 Accounts receivable 738 Prepaids and other current assets 487 Goodwill (1) 9,513 Intangible assets (2) 4,780 Other assets 75 Total assets 16,056 Liabilities: Accounts payable and other current liabilities 837 Contract liabilities 298 Deferred tax liability 825 Total liabilities 1,960 Net assets acquired $ 14,096 (1) Goodwill represents the expected synergies from combining FeedbackNow with Forrester as well as the value of the acquired workforce. (2) All of the intangible assets are finite-lived. The determination of the fair value of the finite-lived intangible assets required management judgment and the consideration of a number of factors. In determining the fair values, management primarily relied on income valuation methodologies, in particular discounted cash flow models. The use of discounted cash flow models required the use of estimates, including projected cash flows related to the particular asset, the useful lives of the particular assets, the selection of royalty and discount rates used in the models, and certain published industry benchmark data. In establishing the estimated useful lives of the acquired intangible assets, the Company relied primarily on the duration of the cash flows utilized in the valuation model. Of the $4.8 million assigned to intangible assets, $3.0 million was assigned to the technology asset class with a useful life of 6.5 years, $1.3 million to customer relationships with useful lives of 4.5 years to 7.5 years (with a weighted average amortization period of 6.1 years), and $0.5 million to trademarks with a useful life of 8.5 years. The weighted-average amortization period of all intangible assets is 4.8 years. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Segment and Changes in Carrying Amount of Goodwill | A summary of goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands): Research Segment Consulting Segment Product Segment SiriusDecisions Segment Total Balance at December 31, 2018 $ 72,647 $ — $ 12,518 $ — $ 85,165 Reassignment (1) 12,518 — (12,518 ) — — Acquisitions (2) 16,025 — — 142,544 158,569 Translation adjustments 121 — — 40 161 Balance at December 31, 2019 101,311 — — 142,584 243,895 Reassignment on January 1, 2020 (3) 130,179 — 12,405 (142,584 ) — Reassignment on May 1, 2020 (4) 4,195 8,143 (12,338 ) — — Translation adjustments 3,228 155 (67 ) — 3,316 Balance at December 31, 2020 $ 238,913 $ 8,298 $ — $ — $ 247,211 (1) In conjunction with the acquisition of SiriusDecisions, the Company realigned its management structure on January 1, 2019 into Research, Product, and SiriusDecisions from its prior structure of Research, Product, and Project Consulting. Goodwill was reassigned as of January 1, 2019 based on the relative fair values of the Research and Product reporting units. (2) The goodwill related to the acquisition of SiriusDecisions was allocated to the SiriusDecisions segment, except for the portion of goodwill representing revenue synergies that are expected to benefit the Research segment. (3) On January 1, 2020, the Company realigned its internal management and reporting as SiriusDecisions no longer operated under a separate management structure. As a result, the SiriusDecisions segment was eliminated (refer to Note 12 – Operating Segment and Enterprise Wide Reporting ). Goodwill was reassigned on January 1, 2020 based on the relative fair values of the product lines transferred to the Research and Product reporting units. (4) As described in the Company’s Form 8-K filed on April 2, 2020, Forrester’s Chief Product Officer resigned from the Company effective April 17, 2020. Subsequently, the Chief Product Officer position was eliminated and on May 1, 2020, the Company reorganized its operations to reflect three lines of business: Research, Consulting, and Events. As a result, the Product segment was eliminated (refer to Note 12 – Operating Segment and Enterprise Wide Reporting ). Goodwill was reassigned based on the relative fair values of product lines transferred to the Research, Consulting, and Events reporting units. No goodwill was reassigned to the Events reporting unit. |
Summary of Intangible Assets | A summary of Forrester’s intangible assets is as follows (in thousands): December 31, 2020 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 78,450 $ 17,277 $ 61,173 Technology 16,956 10,197 6,759 Trademarks 12,495 2,432 10,063 Total $ 107,901 $ 29,906 $ 77,995 December 31, 2019 Gross Net Carrying Accumulated Carrying Amount Amortization Amount Amortizable intangible assets: Customer relationships $ 109,825 $ 40,169 $ 69,656 Technology 16,661 7,051 9,610 Backlog 13,000 6,500 6,500 Trademarks 12,451 854 11,597 Total $ 151,937 $ 54,574 $ 97,363 |
Summary of Estimated Intangible Assets Amortization Expense | Estimated intangible asset amortization expense for each of the five succeeding years is as follows (in thousands): 2021 $ 15,163 2022 13,230 2023 11,980 2024 9,936 2025 8,887 Thereafter 18,799 Total $ 77,995 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The amount payable in each year as of December 31, 2020 is set forth in the table below (in thousands): 2021 $ 12,500 2022 12,500 2023 15,625 2024 68,750 Total remaining principal payments $ 109,375 |
Summary of Company's Total Outstanding Borrowings | The following table summarizes the Company’s total outstanding borrowings as of the dates indicated (in thousands): Description: December 31, 2020 December 31, 2019 Term loan facility (1) $ 109,375 $ 118,750 Revolving credit facility (1) (2) — 14,000 Principal amount outstanding (3) 109,375 132,750 Less: Deferred financing fees (1,576 ) (2,205 ) Net carrying amount $ 107,799 $ 130,545 (1) The contractual annualized interest rate as of December 31, 2020 on the Term loan facility was 2.1875%, which consisted of LIBOR of 0.1875% plus a margin of 2.0%. However, the Company has an interest rate swap contract that effectively converts the floating LIBOR base rates on a portion of the amounts outstanding to a fixed base rate. Refer to Note 6 – Derivatives and Hedging (2) The Company had $74.1 million of available borrowing capacity on the Revolving Credit Facility (not including the expansion feature) as of December 31, 2020. (3) The weighted average annual effective rate on the Company's total debt outstanding for the years ended December 31, 2020 and 2019 was 2.73% and 4.71%, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): Year Ended Year Ended December 31, 2020 December 31, 2019 Operating lease cost $ 16,188 $ 15,005 Short-term lease cost 330 498 Variable lease cost 1,871 5,318 Sublease income (256 ) (205 ) Total lease cost $ 18,133 $ 20,616 |
Summary of Additional Lease Information | Additional lease information is summarized in the following table (in thousands, except lease term and discount rate): Year Ended Year Ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,577 $ 10,953 Operating ROU assets obtained in exchange for lease obligations $ 12,200 $ 18,497 Weighted-average remaining lease term - operating leases (years) 6.4 6.4 Weighted-average discount rate - operating leases 4.6 % 5.1 % |
Summary of Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows (in thousands): 2021 $ 15,425 2022 15,468 2023 15,070 2024 14,687 2025 12,700 Thereafter 21,109 Total lease payments 94,459 Less imputed interest (12,164 ) Present value of lease liabilities $ 82,295 |
Summary of Lease Balances | Lease balances are as follows (in thousands): As of December 31, 2020 Operating lease ROU assets $ 69,296 Short-term operating lease liabilities (1) $ 11,972 Non-current operating lease liabilities 70,323 Total operating lease liabilities $ 82,295 (1) Included in accrued expenses and other current liabilities in the Consolidated Balance Sheets. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Contracts Amounts Recognized in Consolidated Statement of Operations | The table below provides information regarding amounts recognized in the Consolidated Statements of Operations for derivative contracts for the periods indicated (in thousands): For the Year Ended December 31, Amount recorded in: 2020 2019 Interest expense (1) $ (858 ) $ — Other income (expense), net (2) (157 ) — Total $ (1,015 ) $ — (1) Consists of interest expense from the interest rate swap contract. (2) Consists of net realized losses on foreign currency forward contracts. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities | The following table represents the Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Measurements As of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 503 $ — $ — $ 503 Total Assets $ 503 $ — $ — $ 503 Liabilities: Interest rate swap (2) $ — $ (1,144 ) $ — $ (1,144 ) Total Liabilities $ — $ (1,144 ) $ — $ (1,144 ) Fair Value Measurements As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 2,354 $ — $ — $ 2,354 Total Assets $ 2,354 $ — $ — $ 2,354 Liabilities: Interest rate swap (2) $ — $ (144 ) $ — $ (144 ) Contingent purchase price (3) — — (2,511 ) (2,511 ) Total Liabilities $ — $ (144 ) $ (2,511 ) $ (2,655 ) (1) (2) Debt Derivatives and Hedging (3) |
Summary of Changes in the Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration were as follows (in thousands): Contingent Consideration Balance at December 31, 2017 $ — Acquisition of FeedbackNow (1) (3,388 ) Fair value adjustment of contingent purchase price (2) (780 ) Foreign exchange effect (28 ) Balance at December 31, 2018 (4,196 ) Fair value adjustment of contingent purchase price (2) (68 ) Payment of contingent purchase price (3) 1,769 Foreign exchange effect (16 ) Balance at December 31, 2019 (2,511 ) Fair value adjustment of contingent purchase price (2) (22 ) Payment of contingent purchase price (4) 2,680 Foreign exchange effect (147 ) Balance at December 31, 2020 $ — (1) Refer to Note 2 – Acquisitions for a discussion of the fair value of the contingent purchase price as of the acquisition date. (2) Subsequent to the acquisition of FeedbackNow, the increases in the fair value of the contingent consideration were primarily due to the achievement of contract bookings during these periods. T he Monte Carlo simulation was used to determine the fair value and increases or decreases in the simulation’s inputs would have resulted in higher or lower fair value measurements. These amounts were recognized as acquisition and integration costs in the Consolidated Statements of Operations. (3) During the third quarter of 2019, the first year financial targets were met and $1.8 million was paid to the sellers during the same period. (4) During the third quarter of 2020, the second year financial targets were met and $2.7 million was paid to the sellers during the fourth quarter of 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | Income before income taxes consists of the following (in thousands): Years Ended December 31, 2020 2019 2018 Domestic $ 7,237 $ (14,637 ) $ 17,718 Foreign 5,696 5,038 5,807 Total $ 12,933 $ (9,599 ) $ 23,525 |
Components of the Income Tax Expense (Benefit) | The components of the income tax expense (benefit) are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Current: Federal $ 603 $ 618 $ 2,278 State 2,054 911 1,173 Foreign 1,963 2,399 1,763 Total current 4,620 3,928 5,214 Deferred: Federal 490 (1,454 ) 2,111 State (1,641 ) (2,005 ) 667 Foreign (526 ) (498 ) 153 Total deferred (1,677 ) (3,957 ) 2,931 Income tax expense (benefit) $ 2,943 $ (29 ) $ 8,145 |
Reconciliation of the Federal Statutory Rate | A reconciliation of the federal statutory rate to Forrester’s effective tax rate is as follows: Years Ended December 31, 2020 2019 2018 Income tax provision at federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax resulting from: State tax provision, net of federal benefit 2.6 8.3 6.2 Foreign tax rate differential (0.2 ) 0.4 (0.2 ) Stock option compensation 5.7 (1.2 ) (1.1 ) Withholding taxes 3.3 (3.5 ) 2.1 Non-deductible expenses 2.2 (9.8 ) 5.3 Change in valuation allowance (5.8 ) 2.3 — Foreign subsidiary income subject to U.S. tax (4.3 ) (7.4 ) — Change in tax legislation (1.9 ) (1.2 ) 1.9 Audit settlements — (8.3 ) — Other, net 0.2 (0.3 ) (0.6 ) Effective tax rate 22.8 % 0.3 % 34.6 % |
Components of Deferred Income Taxes | The components of deferred income taxes are as follows (in thousands): As of December 31, 2020 2019 Non-deductible reserves and accruals $ 2,814 $ 2,743 Net operating loss and other carryforwards 8,719 13,049 Stock compensation 1,935 2,651 Lease liability 22,842 17,382 Gross deferred tax asset 36,310 35,825 Less - valuation allowance (1,237 ) (2,274 ) Sub-total 35,073 33,551 Other liabilities (751 ) (1,085 ) Depreciation and amortization (1,091 ) (1,567 ) Goodwill and intangible assets (27,319 ) (32,120 ) Operating lease right-of-use assets (19,201 ) (15,005 ) Deferred commissions (6,665 ) (5,706 ) Net deferred tax asset (liability) $ (19,954 ) $ (21,932 ) |
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, 2020, 2019, and 2018 (in thousands): 2020 2019 2018 Deferred tax valuation allowance at January 1 $ 2,274 $ 2,574 $ 2,686 Additions 52 30 74 Deductions (1,134 ) (356 ) (139 ) Change in tax legislation 2 — — Translation adjustments 43 26 (47 ) Deferred tax valuation allowance at December 31 $ 1,237 $ 2,274 $ 2,574 |
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, 2020, 2019, and 2018 (in thousands): 2020 2019 2018 Unrecognized tax benefits at January 1 $ 345 $ 799 $ 806 Reductions for tax positions of prior years (344 ) (458 ) — Additions for tax positions of current year — — — Settlements — — — Translation adjustments 27 4 (7 ) Unrecognized tax benefits at December 31 $ 28 $ 345 $ 799 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Restricted Stock Unit Activity | RSU activity for the year ended December 31, 2020 is presented below (in thousands, except per share data): Weighted- Average Number of Grant Date Shares Fair Value Unvested at December 31, 2019 656 $ 42.94 Granted 360 35.15 Vested (275 ) 41.92 Forfeited (99 ) 43.02 Unvested at December 31, 2020 642 $ 38.99 |
Schedule of Stock Option Activity | Stock option activity for the year ended December 31, 2020 is presented below (in thousands, except per share data and contractual term): Weighted - Weighted - Average Average Exercise Remaining Aggregate Number Price Per Contractual Intrinsic of Shares Share Term (in years) Value Outstanding at December 31, 2019 436 $ 35.62 Granted — — Exercised (90 ) 34.87 Forfeited (54 ) 37.70 Outstanding at December 31, 2020 292 $ 35.46 3.35 $ 1,880 Vested and Exercisable at December 31, 2020 292 $ 35.46 3.35 $ 1,880 |
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 February 29, 2020 47 $ 29.27 August 31, 2020 50 $ 30.14 February 28, 2019 25 $ 41.82 August 31, 2019 35 $ 29.64 |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows (in thousands): Marketable Investments Interest Rate Swap Translation Adjustment Total AOCI/L Balance at December 31, 2017 $ (115 ) $ — $ (1,897 ) $ (2,012 ) Foreign currency translation (1) — — (3,257 ) (3,257 ) Reclassification of stranded tax effects from tax reform (26 ) — — (26 ) Unrealized gain before reclassification, net of tax of $(4) 12 — — 12 Reclassification of AOCI/L to income, net of tax of $(75) (2) 129 — — 129 Balance at December 31, 2018 — — (5,154 ) (5,154 ) Foreign currency translation (1) — — 401 401 Unrealized loss, net of tax of $40 — (104 ) — (104 ) Balance at December 31, 2019 — (104 ) (4,753 ) (4,857 ) Foreign currency translation (1) — — 4,884 4,884 Unrealized loss before reclassification, net of tax of $283 — (1,333 ) — (1,333 ) Reclassification of AOCI/L to income, net of tax of $(242) (3) — 616 — 616 Balance at December 31, 2020 $ — $ (821 ) $ 131 $ (690 ) (1) The Company does not record tax provisions or benefits for the net changes in foreign currency translation adjustments as it intends to permanently reinvest undistributed earnings of its foreign subsidiaries. (2) Reclassification is related to r ealized losses on sales of the Company’s available-for-sale securities and were recorded in gains on investments, net in the Consolidated Statements of Operations. (3) Reclassification is related to the Company’s interest rate swap (cash flow hedge) and was recorded in interest expense in the Consolidated Statements of Operations. Refer to Note 6 – Derivatives and Hedging . |
Operating Segment and Enterpr_2
Operating Segment and Enterprise Wide Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segments, Disaggregation of Revenue by Product | The following tables present information about reportable segments, including the Company’s disaggregation of revenue by product (in thousands): Research Segment Consulting Segment Events Segment Consolidated Year Ended December 31, 2020 Research revenues Research revenues $ 219,670 $ — $ — $ 219,670 Connect revenues 54,530 — — 54,530 Analytics revenues 20,285 — — 20,285 Total research revenues 294,485 — — 294,485 Consulting revenues 57,276 87,086 — 144,362 Events revenues — — 10,137 10,137 Total segment revenues 351,761 87,086 10,137 448,984 Segment expenses (110,843 ) (40,168 ) (8,231 ) (159,242 ) Selling, marketing, administrative and other expenses (248,105 ) Amortization of intangible assets (19,683 ) Acquisition and integration costs (5,779 ) Interest expense, other expense, and gains on investments (3,242 ) Income before income taxes $ 12,933 Research Segment Consulting Segment Events Segment Consolidated Year Ended December 31, 2019 Research revenues Research revenues $ 219,189 $ — $ — $ 219,189 Connect revenues 56,224 — — 56,224 Analytics revenues 23,322 — — 23,322 Total research revenues 298,735 — — 298,735 Consulting revenues 60,758 75,194 — 135,952 Events revenues — — 27,010 27,010 Total segment revenues 359,493 75,194 27,010 461,697 Segment expenses (120,882 ) (38,192 ) (18,968 ) (178,042 ) Selling, marketing, administrative and other expenses (253,163 ) Amortization of intangible assets (22,619 ) Acquisition and integration costs (8,948 ) Interest expense, other expense, and gains on investments (8,524 ) Loss before income taxes $ (9,599 ) Research Segment Consulting Segment Events Segment Consolidated Year Ended December 31, 2018 Research revenues Research revenues $ 157,112 $ — $ — $ 157,112 Connect revenues 51,377 — — 51,377 Analytics revenues 19,910 — — 19,910 Total research revenues 228,399 — — 228,399 Consulting revenues 56,863 58,842 — 115,705 Events revenues — — 13,471 13,471 Total segment revenues 285,262 58,842 13,471 357,575 Segment expenses (88,015 ) (30,957 ) (10,102 ) (129,074 ) Selling, marketing, administrative and other expenses (201,127 ) Amortization of intangible assets (1,162 ) Acquisition and integration costs (3,787 ) Interest expense, other income, and gains on investments 1,100 Income before income taxes $ 23,525 |
Schedule of Net Long-lived Tangible Assets by Location | Net long-lived tangible assets by location as of December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 United States $ 24,645 $ 26,709 United Kingdom 261 578 Europe (excluding United Kingdom) 78 97 Asia Pacific 2,048 2,553 Total $ 27,032 $ 29,937 |
Schedule of Revenues by Geographic Destination, Based on Location Products and Services and as a Percentage of Total Revenues | Revenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2020, 2019, and 2018 are as follows (dollars in thousands): 2020 2019 2018 United States $ 356,288 $ 362,867 $ 274,151 Europe (excluding United Kingdom) 34,897 32,585 29,741 United Kingdom 15,741 21,316 15,273 Canada 14,005 17,246 15,569 Asia Pacific 22,969 22,842 17,839 Other 5,084 4,841 5,002 Total $ 448,984 $ 461,697 $ 357,575 2020 2019 2018 United States 79 % 79 % 77 % Europe (excluding United Kingdom) 8 7 8 United Kingdom 4 4 4 Canada 3 4 4 Asia Pacific 5 5 5 Other 1 1 2 Total 100 % 100 % 100 % |
Certain Balance Sheet Accounts
Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Property and Equipment | Property and equipment as of December 31, 2020 and 2019 is recorded at cost less accumulated depreciation and consists of the following (in thousands): 2020 2019 Computers and equipment $ 17,191 $ 18,337 Computer software 35,476 30,812 Furniture and fixtures 10,466 10,365 Leasehold improvements 31,517 32,935 Total property and equipment 94,650 92,449 Less accumulated depreciation (67,618 ) (62,512 ) Total property and equipment, net $ 27,032 $ 29,937 |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2020 and 2019 consist of the following (in thousands): 2020 2019 Payroll and related benefits $ 43,575 $ 45,340 Taxes 8,324 5,320 Lease liability 11,972 12,208 Other 12,749 16,989 Total $ 76,620 $ 79,857 |
Summary of Non-Current Liabilities | Non-current liabilities as of December 31, 2020 and 2019 consist of the following (in thousands): 2020 2019 Deferred tax liability $ 21,526 $ 22,884 Other 1,559 1,025 Total $ 23,085 $ 23,909 |
Summary of Allowance for Doubtful Accounts | A rollforward of the allowance for doubtful accounts as of and for the years ended December 31, 2020, 2019, and 2018 is as follows (in thousands): 2020 2019 2018 Balance, beginning of year $ 628 $ 359 $ 155 Cumulative effect adjustment of adopting Topic 326 (1) 218 — — Provision for doubtful accounts 721 1,246 567 Write-offs (850 ) (987 ) (356 ) Translation Adjustments (9 ) 10 (7 ) Balance, end of year $ 708 $ 628 $ 359 (1) Topic 326 was adopted on January 1, 2020. Refer to Note 1 – Summary of Significant Accounting Policies for a discussion on the adoption. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 02, 2018USD ($) | Dec. 31, 2020USD ($)ConsumerandBusinessLeaderCustomershares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Jan. 01, 2020USD ($) | Jan. 01, 2019USD ($) |
Summary Of Significant Accounting Policy [Line Items] | ||||||
Number of real time feedback votes included in annual surveys | Customer | 45 | |||||
Right-of-use asset impairments | $ 2,300,000 | |||||
Leasehold impairments | 1,100,000 | |||||
(Decrease) increase in retained earnings | 127,981,000 | $ 118,147,000 | ||||
Operating lease right-of-use assets | 69,296,000 | 69,100,000 | ||||
Operating lease liabilities | $ 82,295,000 | |||||
Lease package practical expedients | true | |||||
Reclassification adjustment to retained earnings for tax effects | $ (26,000) | |||||
Deferred revenue | $ 179,968,000 | 179,194,000 | ||||
Prepaid expenses and other current assets | 18,588,000 | 19,201,000 | ||||
Deferred commissions | 23,620,000 | 20,326,000 | ||||
Other assets | $ 5,524,000 | 6,829,000 | ||||
Original maturities | 90 days | |||||
Realized losses on sales of available-for-sale securities | 200,000 | |||||
Number of customers accounted for revenues or accounts receivable greater than 3% or 3% of total | Customer | 0 | |||||
Annual goodwill impairment test, period | November 30th | |||||
Goodwill impairment charges | $ 0 | 0 | 0 | |||
Long-lived asset impairment charges | 3,400,000 | 0 | 0 | |||
Foreign exchange losses | (582,000) | (933,000) | (603,000) | |||
Revenues from contracts with customers | 448,984,000 | 461,697,000 | 357,575,000 | |||
Contract assets | $ 0 | |||||
Contract with customer, contract duration | 1 year | |||||
Deferred revenue recognized | $ 153,200,000 | 147,200,000 | ||||
Revenue expected to be recognized | 369,800,000 | |||||
Amortization expense related to deferred commissions | 40,000,000 | 36,000,000 | 32,200,000 | |||
Impairment of deferred commissions | $ 0 | 0 | 0 | |||
Option to extend description | Some of the Company’s leases include options to extend or terminate the lease. When determining the lease term, these options are included in the measurement and recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option(s). | |||||
Advertising expense | $ 700,000 | $ 1,300,000 | $ 600,000 | |||
Stock options granted | shares | 0 | 0 | 0 | |||
Unamortized fair value stock based compensation | $ 20,100,000 | |||||
Weighted average remaining recognition period | 2 years 9 months 18 days | |||||
Research Service Revenue [Member] | Customer Concentration Risk [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Customer accounted for percentage | 3.00% | |||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Customer accounted for percentage | 3.00% | |||||
ASU No. 2016-13 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||||
ASU No. 2017-04 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU No. 2018-13 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU No. 2018-15 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
Topic 842 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2019 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
Operating lease right-of-use assets | $ 53,300,000 | |||||
Operating lease liabilities | 60,800,000 | |||||
Topic 842 [Member] | Effect of Adoption [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Deferred rent | $ 7,500,000 | |||||
ASU No. 2016-15 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2018 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU No. 2016-18 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2018 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU No. 2017-01 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2018 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU No. 2018-02 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2018 | |||||
ASU No. 2018-02 [Member] | Revision of Prior Period Accounting Standards Update Adjustment [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Reclassification adjustment to retained earnings for tax effects | $ 26,000 | |||||
ASU No. 2014-09 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2018 | |||||
ASU No. 2014-09 [Member] | Initial Application Period Cumulative Effect Transition [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
(Decrease) increase in retained earnings | $ 3,800,000 | |||||
Deferred revenue | 7,800,000 | |||||
Prepaid expenses and other current assets | (5,500,000) | |||||
Deferred commissions | 900,000 | |||||
Other assets | $ 600,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU No. 2016-13 [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
(Decrease) increase in retained earnings | $ (200,000) | |||||
Minimum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Number of consumers and business leaders and technology leaders included in annual surveys | ConsumerandBusinessLeader | 675,000 | |||||
Consulting services period | 14 days | |||||
Advisory services period | 1 hour | |||||
Maximum [Member] | ||||||
Summary Of Significant Accounting Policy [Line Items] | ||||||
Consulting services period | 3 months | |||||
Advisory services period | 2 days | |||||
Contract with customer, expected payment term | one year |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Allowance for Expected Credit Losses on Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Balance, beginning of year | $ 628 | $ 359 | $ 155 |
Cumulative effect adjustment of adopting Topic 326 | 218 | ||
Provision for expected credit losses | 721 | 1,246 | 567 |
Write-offs | (850) | (987) | (356) |
Translation adjustments | (9) | 10 | (7) |
Balance, end of year | $ 708 | $ 628 | $ 359 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of End-of-period Cash and Cash Equivalents and Cash, Cash Equivalents and Restricted Cash from Financial Statements (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash And Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 90,257 | $ 67,904 |
Restricted cash, current | $ 395 | $ 1,250 |
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent | us-gaap:PrepaidExpenseAndOtherAssetsCurrent |
Restricted cash, non-current | $ 38 | |
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | |
Cash, cash equivalents and restricted cash shown in statement of cash flows | $ 90,652 | $ 69,192 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Additional Information1 (Detail) | Dec. 31, 2020 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Summary Of Significant Accounting Policy [Line Items] | |
Performance obligation, revenue expected to be recognized | 24 months |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Stock-Based Compensation Expense Recorded in Expense Categories (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | $ 10,877 | $ 11,684 | $ 8,300 |
Cost of Services and Fulfillment [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | 6,156 | 6,627 | 4,329 |
Selling and Marketing [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | 1,751 | 1,768 | 1,065 |
General and Administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total allocated share-based compensation expense | $ 2,970 | $ 3,289 | $ 2,906 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Shares Subject to Employee Stock Purchase Plan Valuation Assumptions (Detail) - Employee Stock Purchase Plan [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 0.12% | 1.89% | 1.90% |
Expected dividend yield | 0.00% | 0.00% | 1.90% |
Expected life | 6 months | 6 months | 6 months |
Expected volatility | 93.00% | 30.00% | 23.00% |
Weighted average fair value | $ 14.57 | $ 8.29 | $ 9.13 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Depreciation and Amortization of Property and Equipment, Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Computers and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Computers and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 10 years |
Computer Software [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Computer Software [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Furniture and Fixtures [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 7 years |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | Shorter of asset life or lease term |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Amortization of Intangible Assets, Estimated Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Customer Relationships [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 5 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 9 years |
Technology [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 1 year |
Technology [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 8 years |
Backlog [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 2 years |
Trademarks [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 7 years |
Trademarks [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization of intangible assets, estimated useful life | 9 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule of Basic and Diluted Weighted Average Common Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 18,827 | 18,492 | 18,091 |
Weighted average common equivalent shares | 108 | 289 | |
Diluted weighted average common shares outstanding | 18,935 | 18,492 | 18,380 |
Options and restricted stock units excluded from diluted weighted average share calculation as effect would have been anti-dilutive | 326 | 1,099 | 8 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Jan. 03, 2019USD ($)Employee | Jul. 06, 2018USD ($) | Jun. 22, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 247,211 | $ 243,895 | $ 85,165 | |||
Cash contingent paid on achievement of certain employment conditions | 200 | 100 | ||||
Acquisition and integration costs | 5,779 | 8,948 | 3,787 | |||
Sirius Decisions Segment [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 142,500 | 142,584 | ||||
Research Segment [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 16,000 | 238,913 | 101,311 | $ 72,647 | ||
SiriusDecisions, Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenue | 79,300 | |||||
Direct expenses including intangible amortization | 103,900 | |||||
SiriusDecisions, Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of issued and outstanding shares acquired | 100.00% | |||||
Number of employees | Employee | 350 | |||||
Consideration paid | $ 245,000 | |||||
Purchase price paid | 246,801 | |||||
Goodwill | $ 158,569 | |||||
FeedbackNow [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of issued and outstanding shares acquired | 100.00% | |||||
Purchase price paid | $ 8,425 | $ 2,700 | $ 1,800 | |||
Goodwill | $ 9,513 | |||||
Acquisition date | Jul. 6, 2018 | |||||
Balance acquisition price payable period | 2 years | |||||
SocialGlimpz Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price paid | $ 1,300 | |||||
Goodwill | $ 700 | |||||
Acquisition date | Jun. 22, 2018 | |||||
Name of the business entity acquired | SocialGlimpz, Inc. | |||||
Description of acquired entity | On June 22, 2018, Forrester acquired substantially all of the assets of SocialGlimpz, Inc. (“GlimpzIt”), an artificial intelligence and machine-learning provider based in San Francisco. The acquisition is part of Forrester's plan to build a real-time CX cloud solution, integrating a range of inputs to help companies monitor and improve customer experience. Forrester intends to deploy the GlimpzIt technology to extend the analytics engine in Forrester’s planned real-time CX cloud. | |||||
Cash contingent to be paid on achievement of certain employment conditions | $ 300 | |||||
SocialGlimpz Inc. [Member] | Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 600 | |||||
Estimated useful life | 5 years |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Aggregate Consideration Paid (Detail) - SiriusDecisions, Inc [Member] $ in Thousands | Jan. 03, 2019USD ($) |
Business Acquisition [Line Items] | |
Cash paid at close | $ 246,801 |
Working capital adjustment | (1,259) |
Total | $ 245,542 |
Acquisitions - Summary of Fai_2
Acquisitions - Summary of Fair Value of Aggregate Consideration Paid (Parenthetical) (Detail) - USD ($) $ in Thousands | Jan. 03, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Net cash paid | $ 237,684 | $ 9,250 | |
SiriusDecisions, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Cash acquired | $ 7,900 | ||
Net cash paid | 237,700 | ||
Working capital adjustment | $ (1,259) |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 03, 2019 | Dec. 31, 2018 | Jul. 06, 2018 |
Assets: | |||||
Goodwill | $ 247,211 | $ 243,895 | $ 85,165 | ||
SiriusDecisions, Inc [Member] | |||||
Assets: | |||||
Cash and cash equivalents | $ 7,858 | ||||
Accounts receivable | 19,237 | ||||
Prepaids and other current assets | 3,660 | ||||
Property and equipment | 4,169 | ||||
Goodwill | 158,569 | ||||
Intangible assets | 115,000 | ||||
Other assets | 418 | ||||
Total assets | 308,911 | ||||
Liabilities: | |||||
Accounts payable and other current liabilities | 8,924 | ||||
Deferred revenue | 26,143 | ||||
Deferred tax liability | 26,226 | ||||
Long-term deferred revenue | 1,037 | ||||
Other long-term liabilities | 1,039 | ||||
Total liabilities | 63,369 | ||||
Net assets acquired | $ 245,542 | ||||
FeedbackNow [Member] | |||||
Assets: | |||||
Cash and cash equivalents | $ 463 | ||||
Accounts receivable | 738 | ||||
Prepaids and other current assets | 487 | ||||
Goodwill | 9,513 | ||||
Intangible assets | 4,780 | ||||
Other assets | 75 | ||||
Total assets | 16,056 | ||||
Liabilities: | |||||
Accounts payable and other current liabilities | 837 | ||||
Contract liabilities | 298 | ||||
Deferred tax liability | 825 | ||||
Total liabilities | 1,960 | ||||
Net assets acquired | $ 14,096 |
Acquisitions - Summary of All_2
Acquisitions - Summary of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) - USD ($) $ in Thousands | Jan. 03, 2019 | Jul. 06, 2018 |
SiriusDecisions, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 115,000 | |
Intangible assets, Useful life | 8 years 4 months 24 days | |
SiriusDecisions, Inc [Member] | Technology Asset Class [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 13,000 | |
Intangible assets, Useful life | 3 years 2 months 12 days | |
SiriusDecisions, Inc [Member] | Technology Asset Class [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, Useful life | 1 year | |
SiriusDecisions, Inc [Member] | Technology Asset Class [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, Useful life | 8 years | |
SiriusDecisions, Inc [Member] | Backlog [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 13,000 | |
Intangible assets, Useful life | 2 years | |
SiriusDecisions, Inc [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 77,000 | |
Intangible assets, Useful life | 9 years 3 months | |
SiriusDecisions, Inc [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 12,000 | |
Intangible assets, Useful life | 15 years 6 months | |
FeedbackNow [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 4,780 | |
Intangible assets, Useful life | 4 years 9 months 18 days | |
FeedbackNow [Member] | Technology Asset Class [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 3,000 | |
Intangible assets, Useful life | 6 years 6 months | |
FeedbackNow [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 1,300 | |
Intangible assets, Useful life | 6 years 1 month 6 days | |
FeedbackNow [Member] | Customer Relationships [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, Useful life | 4 years 6 months | |
FeedbackNow [Member] | Customer Relationships [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, Useful life | 7 years 6 months | |
FeedbackNow [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 500 | |
Intangible assets, Useful life | 8 years 6 months |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Financial Information (Detail) - SiriusDecisions, Inc [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Pro forma total revenue | $ 472,810 | $ 438,049 |
Pro forma net income (loss) | $ 733 | $ (10,069) |
Acquisitions - Summary of Fai_3
Acquisitions - Summary of Fair Value of Aggregate Consideration Payable (Detail) - FeedbackNow [Member] - USD ($) $ in Thousands | Jul. 06, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Cash paid at close | $ 8,425 | $ 2,700 | $ 1,800 |
Working capital adjustment | 798 | ||
Indemnity holdback | 1,485 | $ 1,000 | $ 500 |
Contingent purchase price | 3,388 | ||
Total | $ 14,096 |
Acquisitions - Summary of Fai_4
Acquisitions - Summary of Fair Value of Aggregate Consideration Payable (Parenthetical) (Detail) - USD ($) $ in Thousands | Jul. 06, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Net cash paid | $ 237,684 | $ 9,250 | ||
FeedbackNow [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash acquired | $ 500 | |||
Net cash paid | 8,000 | |||
Indemnity holdback | 1,485 | $ 1,000 | 500 | |
Contingent purchase price | 3,400 | |||
Purchase price paid | $ 8,425 | $ 2,700 | $ 1,800 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Goodwill by Segment and Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | May 01, 2020 | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | ||||
Goodwill, Beginning Balance | $ 243,895 | $ 243,895 | $ 85,165 | |
Acquisitions | 158,569 | |||
Translation adjustments | 3,316 | 161 | ||
Goodwill, Ending Balance | 247,211 | 243,895 | ||
Research Segment [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Beginning Balance | 101,311 | 101,311 | 72,647 | |
Reassignment | $ 4,195 | 130,179 | 12,518 | |
Acquisitions | 16,025 | |||
Translation adjustments | 3,228 | 121 | ||
Goodwill, Ending Balance | 238,913 | 101,311 | ||
Consulting Segment [Member] | ||||
Goodwill [Line Items] | ||||
Reassignment | 8,143 | |||
Translation adjustments | 155 | |||
Goodwill, Ending Balance | 8,298 | |||
Product Segment [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Beginning Balance | 12,518 | |||
Reassignment | $ (12,338) | 12,405 | (12,518) | |
Translation adjustments | (67) | |||
Sirius Decisions Segment [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Beginning Balance | 142,584 | $ 142,584 | ||
Reassignment | $ (142,584) | |||
Acquisitions | 142,544 | |||
Translation adjustments | 40 | |||
Goodwill, Ending Balance | $ 142,584 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Accumulated goodwill impairment losses | 0 | ||
Amortization of intangible assets | $ 19,683,000 | $ 22,619,000 | $ 1,162,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 107,901 | $ 151,937 |
Accumulated Amortization | 29,906 | 54,574 |
Total | 77,995 | 97,363 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 78,450 | 109,825 |
Accumulated Amortization | 17,277 | 40,169 |
Total | 61,173 | 69,656 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,956 | 16,661 |
Accumulated Amortization | 10,197 | 7,051 |
Total | 6,759 | 9,610 |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,495 | 12,451 |
Accumulated Amortization | 2,432 | 854 |
Total | $ 10,063 | 11,597 |
Backlog [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,000 | |
Accumulated Amortization | 6,500 | |
Total | $ 6,500 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Intangible Assets Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2021 | $ 15,163 | |
2022 | 13,230 | |
2023 | 11,980 | |
2024 | 9,936 | |
2025 | 8,887 | |
Thereafter | 18,799 | |
Total | $ 77,995 | $ 97,363 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jan. 03, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity amount | $ 200,000,000 | ||
Aggregate principal amount | $ 109,375,000 | $ 132,750,000 | |
Percentage of voting equity of subsidiaries | 65.00% | ||
Maximum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.50% | ||
Maximum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.50% | ||
Minimum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.75% | ||
Minimum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.75% | ||
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 125,000,000 | $ 109,375,000 | 118,750,000 |
Senior secured term loans | $ 125,000,000 | ||
Debt instrument maturity date | Jan. 3, 2024 | ||
Interest rate | 2.00% | ||
Debt cost incurred related to term loans | $ 2,800,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 14,000,000 | ||
Line of credit facility, maximum borrowing capacity | 75,000,000 | ||
Line of credit facility current borrowing capacity | $ 50,000,000 | ||
Credit facility maturity date | Jan. 3, 2024 | ||
Revolving Credit Facility [Member] | Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Available for issuance of letter of credit | $ 5,000,000 | ||
Debt cost incurred related to revolving credit facility | $ 1,800,000 | ||
Debt instrument, amortized over the term | 5 years | ||
Issuance of letter of credit | $ 900,000 | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Increase (decrease) in line of credit facility | $ 50,000,000 | ||
Percentage of commitment fee on the unused portion of the facility | 0.35% | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of commitment fee on the unused portion of the facility | 0.25% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 03, 2019 |
Debt Instrument [Line Items] | |||
Total remaining principal payments | $ 109,375 | $ 132,750 | |
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
2021 | 12,500 | ||
2022 | 12,500 | ||
2023 | 15,625 | ||
2024 | 68,750 | ||
Total remaining principal payments | $ 109,375 | $ 118,750 | $ 125,000 |
Debt - Summary of Company's Tot
Debt - Summary of Company's Total Outstanding Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 03, 2019 |
Debt Instrument [Line Items] | |||
Principal amount outstanding | $ 109,375 | $ 132,750 | |
Less: Deferred financing fees | (1,576) | (2,205) | |
Net carrying amount | 107,799 | 130,545 | |
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount outstanding | $ 109,375 | 118,750 | $ 125,000 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount outstanding | $ 14,000 |
Debt - Summary of Company's T_2
Debt - Summary of Company's Total Outstanding Borrowings (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.73% | 4.71% |
Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.1875% | |
Debt instrument margin rate | 2.00% | |
Term Loans [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.1875% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, available borrowing capacity | $ 74.1 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 16,188 | $ 15,005 |
Short-term lease cost | 330 | 498 |
Variable lease cost | 1,871 | 5,318 |
Sublease income | (256) | (205) |
Total lease cost | $ 18,133 | $ 20,616 |
Leases - Summary of Additional
Leases - Summary of Additional Lease Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 10,577 | $ 10,953 |
Operating ROU assets obtained in exchange for lease obligations | $ 12,200 | $ 18,497 |
Weighted-average remaining lease term - operating leases (years) | 6 years 4 months 24 days | 6 years 4 months 24 days |
Weighted-average discount rate - operating leases | 4.60% | 5.10% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 15,425 |
2022 | 15,468 |
2023 | 15,070 |
2024 | 14,687 |
2025 | 12,700 |
Thereafter | 21,109 |
Total lease payments | 94,459 |
Less imputed interest | (12,164) |
Operating lease liabilities | $ 82,295 |
Leases - Summary of Lease Balan
Leases - Summary of Lease Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 69,296 | $ 69,100 |
Short-term operating lease liabilities | $ 11,972 | 12,208 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | |
Non-current operating lease liabilities | $ 70,323 | $ 67,062 |
Total operating lease liabilities | $ 82,295 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | ||
Right-of-use asset impairments | $ 2.3 | |
Leasehold impairments | 1.1 | |
Office Space [Member] | ||
Lessee Lease Description [Line Items] | ||
Variable incentive payment received | $ 3.5 | |
Topic 842 [Member] | SiriusDecisions, Inc [Member] | Facility Lease [Member] | ||
Lessee Lease Description [Line Items] | ||
Right-of-use asset impairments | 2.3 | |
Leasehold impairments | $ 1.1 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives Fair Value [Line Items] | |||
Derivative maturity year | 2022 | ||
Derivative asset | $ 0 | ||
Derivative liabilities | $ 0 | ||
Interest Rate Swap [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative notional amount | $ 68,700,000 | $ 95,000,000 | |
Derivative fixed interest rate | 1.65275% | ||
Negative fair value of derivative | $ (800,000) | ||
Other comprehensive loss, net of taxes, to be reclassified into earnings within the next 12 months | $ 600,000 | ||
Interest Rate Swap [Member] | Minimum [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative receive rate | 0.00% | ||
Interest Rate Swap [Member] | Other Non Current Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Fair value of liabilities | $ 1,100,000 | ||
Interest Rate Swap [Member] | LIBOR [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative basis rate | 0.0625% |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Derivative Contracts Amounts Recognized in Consolidated Statement of Operations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Derivative Instruments Gain Loss [Line Items] | |
Amount recorded in operations | $ (1,015) |
Interest Expense [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Amount recorded in operations | (858) |
Other Income (Expense), Net [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Amount recorded in operations | $ (157) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities: | |||
Fair value of liabilities | $ 0 | ||
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Fair value of investments | $ 503,000 | $ 2,354,000 | |
Liabilities: | |||
Fair value of liabilities | (1,144,000) | (2,655,000) | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Liabilities: | |||
Fair value of liabilities | (1,144,000) | (144,000) | |
Fair Value, Measurements, Recurring [Member] | Contingent Purchase Price [Member] | |||
Liabilities: | |||
Fair value of liabilities | (2,511,000) | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | |||
Assets: | |||
Fair value of cash equivalents | 503,000 | 2,354,000 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Fair value of investments | 503,000 | 2,354,000 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | |||
Assets: | |||
Fair value of cash equivalents | 503,000 | 2,354,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | |||
Liabilities: | |||
Fair value of liabilities | (1,144,000) | (144,000) | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Interest Rate Swap [Member] | |||
Liabilities: | |||
Fair value of liabilities | $ (1,144,000) | (144,000) | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Liabilities: | |||
Fair value of liabilities | (2,511,000) | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Contingent Purchase Price [Member] | |||
Liabilities: | |||
Fair value of liabilities | $ (2,511,000) |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Detail) - Level 3 [Member] - Contingent Consideration [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | $ (2,511) | $ (4,196) | |
Fair value adjustment of contingent purchase price | (22) | (68) | |
Payment of contingent purchase price | 2,680 | 1,769 | |
Foreign exchange effect | $ (147) | (16) | $ (28) |
Ending balance | $ (2,511) | (4,196) | |
FeedbackNow [Member] | |||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Acquisition of FeedbackNow | (3,388) | ||
Fair value adjustment of contingent purchase price | $ (780) |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||
Consideration paid to sellers based on financial performance | $ 2.7 | $ 1.8 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 7,237 | $ (14,637) | $ 17,718 |
Foreign | 5,696 | 5,038 | 5,807 |
Income (loss) before income taxes | $ 12,933 | $ (9,599) | $ 23,525 |
Income Taxes - Components of th
Income Taxes - Components of the Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 603 | $ 618 | $ 2,278 |
State | 2,054 | 911 | 1,173 |
Foreign | 1,963 | 2,399 | 1,763 |
Total current | 4,620 | 3,928 | 5,214 |
Deferred: | |||
Federal | 490 | (1,454) | 2,111 |
State | (1,641) | (2,005) | 667 |
Foreign | (526) | (498) | 153 |
Total deferred | (1,677) | (3,957) | 2,931 |
Income tax expense (benefit) | $ 2,943 | $ (29) | $ 8,145 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision at federal statutory rate | 21.00% | 21.00% | 21.00% |
Increase (decrease) in tax resulting from: | |||
State tax provision, net of federal benefit | 2.60% | 8.30% | 6.20% |
Foreign tax rate differential | (0.20%) | 0.40% | (0.20%) |
Stock option compensation | 5.70% | (1.20%) | (1.10%) |
Withholding taxes | 3.30% | (3.50%) | 2.10% |
Non-deductible expenses | 2.20% | (9.80%) | 5.30% |
Change in valuation allowance | (5.80%) | 2.30% | |
Foreign subsidiary income subject to U.S. tax | (4.30%) | (7.40%) | |
Change in tax legislation | (0.019) | (0.012) | 0.019 |
Audit settlements | (8.30%) | ||
Other, net | 0.20% | (0.30%) | (0.60%) |
Effective tax rate | 22.80% | 0.30% | 34.60% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Non-deductible reserves and accruals | $ 2,814 | $ 2,743 | ||
Net operating loss and other carryforwards | 8,719 | 13,049 | ||
Stock compensation | 1,935 | 2,651 | ||
Lease liability | 22,842 | 17,382 | ||
Gross deferred tax asset | 36,310 | 35,825 | ||
Less - valuation allowance | (1,237) | (2,274) | $ (2,574) | $ (2,686) |
Sub-total | 35,073 | 33,551 | ||
Other liabilities | (751) | (1,085) | ||
Depreciation and amortization | (1,091) | (1,567) | ||
Goodwill and intangible assets | (27,319) | (32,120) | ||
Operating lease right-of-use assets | (19,201) | (15,005) | ||
Deferred commissions | (6,665) | (5,706) | ||
Net deferred tax asset (liability) | $ (19,954) | $ (21,932) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Long-term net deferred tax liabilities | $ 19,954 | $ 21,932 | ||
Operating loss carryforwards related to a prior acquisition | 3,400 | |||
U.S. federal and state capital loss carryforwards | 1,200 | |||
Valuation allowance | 1,237 | 2,274 | $ 2,574 | $ 2,686 |
Unremitted earnings | 25,600 | |||
Unrecognized tax benefits | $ 28 | 345 | $ 799 | $ 806 |
Income tax expense to settle a foreign tax audit | 300 | |||
U.S. Federal [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, limitations on use | The U.S. federal net operating loss carryforwards resulting from taxable years beginning after December 31, 2017 can be carried forward indefinitely and can be used to offset 80% of U.S. taxable income. | |||
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 27,600 | |||
Other Assets [Member] | ||||
Income Taxes [Line Items] | ||||
Long-term net deferred tax assets | 1,600 | 1,000 | ||
Non-current Liabilities [Member] | ||||
Income Taxes [Line Items] | ||||
Long-term net deferred tax liabilities | $ 21,500 | $ 22,900 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Deferred Tax Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax valuation allowance, Beginning Balance | $ 2,274 | $ 2,574 | $ 2,686 |
Additions | 52 | 30 | 74 |
Deductions | (1,134) | (356) | (139) |
Change in tax legislation | 2 | ||
Translation adjustments | 43 | 26 | (47) |
Deferred tax valuation allowance, Ending Balance | $ 1,237 | $ 2,274 | $ 2,574 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, Beginning Balance | $ 345 | $ 799 | $ 806 |
Reductions for tax positions of prior years | (344) | (458) | |
Translation adjustments | 27 | 4 | (7) |
Unrecognized tax benefits, Ending Balance | $ 28 | $ 345 | $ 799 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
May 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Preferred stock, shares authorized | 500,000 | 500,000 | |||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||||||
Authorized to purchase of common stock under the stock repurchase program | $ 535,000,000 | ||||||||
Cumulative repurchase of common stock | 16,300,000 | ||||||||
Aggregate cost of repurchase of common stock | $ 474,900,000 | ||||||||
Dividend declared and paid per share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | |||||
Dividend declared per share | $ 0.80 | ||||||||
Aggregate dividend declared for the year | $ 14,500,000 | ||||||||
Option Outstanding and vested | 292,000 | 436,000 | |||||||
Common stock, par value | $ 0.01 | $ 0.01 | |||||||
Employee Stock Purchase Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares authorized | 1,100,000 | ||||||||
Future awards granted or issued under plans | 300,000 | ||||||||
Increase in number of shares issuable under plan | 400,000 | ||||||||
Common stock, par value | $ 0.01 | ||||||||
Hours of work per week | 20 hours | ||||||||
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% | ||||||||
Exercise price rate of fair value | 85.00% | ||||||||
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 | $ 35.15 | $ 43.84 | $ 43.71 | ||||||
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 | $ 10,000,000 | $ 8,200,000 | $ 9,100,000 | ||||||
Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Intrinsic value of options exercised | $ 500,000 | $ 1,500,000 | $ 3,300,000 | ||||||
Equity Incentive Plan [Member] | Equity Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares authorized | 6,350,000 | ||||||||
Shares returned | 793,275 | ||||||||
Option expiration period | 10 years | ||||||||
Future awards granted or issued under plans | 1,900,000 | ||||||||
Option Outstanding and vested | 8,000 | ||||||||
Equity Incentive Plan [Member] | Equity Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options vested period | 4 years | ||||||||
Equity Incentive Plan [Member] | Equity Plan [Member] | Non-Employee Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Future awards granted or issued under plans | 0 | ||||||||
Equity Incentive Plan [Member] | Equity Plan [Member] | Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options vested period | 1 year |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Unvested, Beginning Balance | 656 | ||
Number of Shares, Granted | 360 | ||
Number of Shares, Vested | (275) | ||
Number of Shares, Forfeited | (99) | ||
Number of Shares, Unvested, Ending Balance | 642 | 656 | |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ 42.94 | ||
Weighted-Average Grant Date Fair Value, Granted | 35.15 | $ 43.84 | $ 43.71 |
Weighted-Average Grant Date Fair Value, Vested | 41.92 | ||
Weighted-Average Grant Date Fair Value, Forfeited | 43.02 | ||
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ 38.99 | $ 42.94 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares, Outstanding, Beginning Balance | 436,000 | ||
Number of Shares, Granted | 0 | 0 | 0 |
Number of Shares, Exercised | (90,000) | ||
Number of Shares, Forfeited | (54,000) | ||
Number of Shares, Outstanding, Ending Balance | 292,000 | 436,000 | |
Number of Shares, Vested and Exercisable at December 31, 2020 | 292,000 | ||
Weighted - Average Exercise Price Per Share, Outstanding, Beginning balance | $ 35.62 | ||
Weighted - Average Exercise Price Per Share, Exercised | 34.87 | ||
Weighted - Average Exercise Price Per Share, Forfeited | 37.70 | ||
Weighted - Average Exercise Price Per Share, Outstanding, Ending balance | 35.46 | $ 35.62 | |
Weighted - Average Exercise Price Per Share, Vested and Exercisable at December 31, 2020 | $ 35.46 | ||
Weighted - Average Remaining Contractual Term, Outstanding at December 31, 2019 | 3 years 4 months 6 days | ||
Weighted - Average Remaining Contractual Term, Vested and Exercisable at December 31, 2020 | 3 years 4 months 6 days | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2019 | $ 1,880 | ||
Aggregate Intrinsic Value, Vested and Exercisable at December 31, 2020 | $ 1,880 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Shares Purchased by Employees Under the Stock Purchase Plan (Detail) - $ / shares shares in Thousands | 6 Months Ended | |||
Aug. 31, 2020 | Feb. 29, 2020 | Aug. 31, 2019 | Feb. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Shares Purchased | 50 | 47 | 35 | 25 |
Purchase Price | $ 30.14 | $ 29.27 | $ 29.64 | $ 41.82 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 158,088 | $ 151,600 | $ 141,189 |
Foreign currency translation | 4,884 | 401 | (3,257) |
Reclassification of stranded tax effects from tax reform | (26) | ||
Unrealized gain (loss) before reclassification, net of tax | (1,333) | (104) | 12 |
Reclassification of AOCI/L to income, net of tax | 616 | 129 | |
Ending Balance | 185,766 | 158,088 | 151,600 |
Marketable Investments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (115) | ||
Reclassification of stranded tax effects from tax reform | (26) | ||
Unrealized gain (loss) before reclassification, net of tax | 12 | ||
Reclassification of AOCI/L to income, net of tax | 129 | ||
Interest Rate Swap [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (104) | ||
Unrealized gain (loss) before reclassification, net of tax | (1,333) | (104) | |
Reclassification of AOCI/L to income, net of tax | 616 | ||
Ending Balance | (821) | (104) | |
Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (4,753) | (5,154) | (1,897) |
Foreign currency translation | 4,884 | 401 | (3,257) |
Ending Balance | 131 | (4,753) | (5,154) |
Total AOCI/L [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (4,857) | (5,154) | (2,012) |
Foreign currency translation | 4,884 | 401 | (3,257) |
Ending Balance | $ (690) | $ (4,857) | $ (5,154) |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Accumulated other comprehensive income (loss), unrealized gain (loss) before reclassification, net of tax | $ 283 | $ 40 | $ (4) |
Accumulated other comprehensive income (loss), reclassification of AOCI/L to income, net of tax | $ (242) | $ (75) |
Employee Pension Plans - Additi
Employee Pension Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contribution to defined contribution plans | $ 7.6 | $ 7.3 | $ 5 |
Non-Marketable Investments - Ad
Non-Marketable Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||
Gain from non-marketable investments | $ 2,500,000 | $ 600,000 | |
Distributions received from funds | $ 4,300,000 | $ 0 | $ 0 |
Limited Partnerships Investments [Member] | Minimum [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||
Ownership interest of Company | 5.00% | ||
Other Assets [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share [Line Items] | |||
Carrying value of the Company's non-marketable investments | $ 600,000 | $ 2,500,000 |
Operating Segment and Enterpr_3
Operating Segment and Enterprise Wide Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segment and Enterpr_4
Operating Segment and Enterprise Wide Reporting - Schedule of Information about Reportable Segments, Disaggregation of Revenue by Product (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 448,984 | $ 461,697 | $ 357,575 |
Segment expenses | (159,242) | (178,042) | (129,074) |
Selling, marketing, administrative and other expenses | (248,105) | (253,163) | (201,127) |
Amortization of intangible assets | (19,683) | (22,619) | (1,162) |
Acquisition and integration costs | (5,779) | (8,948) | (3,787) |
Interest expense, other expense, and gains on investments | (3,242) | (8,524) | 1,100 |
Income (loss) before income taxes | 12,933 | (9,599) | 23,525 |
Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 351,761 | 359,493 | 285,262 |
Segment expenses | (110,843) | (120,882) | (88,015) |
Consulting Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 87,086 | 75,194 | 58,842 |
Segment expenses | (40,168) | (38,192) | (30,957) |
Events Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 10,137 | 27,010 | 13,471 |
Segment expenses | (8,231) | (18,968) | (10,102) |
Research Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 219,670 | 219,189 | 157,112 |
Research Revenues [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 219,670 | 219,189 | 157,112 |
Connect Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 54,530 | 56,224 | 51,377 |
Connect Revenues [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 54,530 | 56,224 | 51,377 |
Analytics Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 20,285 | 23,322 | 19,910 |
Analytics Revenues [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 20,285 | 23,322 | 19,910 |
Total Research Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 294,485 | 298,735 | 228,399 |
Total Research Revenues [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 294,485 | 298,735 | 228,399 |
Consulting [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 144,362 | 135,952 | 115,705 |
Consulting [Member] | Research Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 57,276 | 60,758 | 56,863 |
Consulting [Member] | Consulting Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 87,086 | 75,194 | 58,842 |
Events [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 10,137 | 27,010 | 13,471 |
Events [Member] | Events Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 10,137 | $ 27,010 | $ 13,471 |
Operating Segment and Enterpr_5
Operating Segment and Enterprise Wide Reporting - Schedule of Net Long-lived Tangible Assets by Location (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | $ 27,032 | $ 29,937 |
United States [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | 24,645 | 26,709 |
United Kingdom [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | 261 | 578 |
Europe (Excluding United Kingdom) [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | 78 | 97 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net long-lived tangible assets | $ 2,048 | $ 2,553 |
Operating Segment and Enterpr_6
Operating Segment and Enterprise Wide Reporting - Schedule of Revenues by Geographic Destination, Based on Location Products and Services and as a Percentage of Total Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 448,984 | $ 461,697 | $ 357,575 |
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 | $ 356,288 | $ 362,867 | $ 274,151 |
Revenues by geographical area percentage | 79.00% | 79.00% | 77.00% |
Europe (Excluding United Kingdom) [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 34,897 | $ 32,585 | $ 29,741 |
Revenues by geographical area percentage | 8.00% | 7.00% | 8.00% |
United Kingdom [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 15,741 | $ 21,316 | $ 15,273 |
Revenues by geographical area percentage | 4.00% | 4.00% | 4.00% |
Canada [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 14,005 | $ 17,246 | $ 15,569 |
Revenues by geographical area percentage | 3.00% | 4.00% | 4.00% |
Asia Pacific [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 22,969 | $ 22,842 | $ 17,839 |
Revenues by geographical area percentage | 5.00% | 5.00% | 5.00% |
Other [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenue | $ 5,084 | $ 4,841 | $ 5,002 |
Revenues by geographical area percentage | 1.00% | 1.00% | 2.00% |
Certain Balance Sheet Account_2
Certain Balance Sheet Accounts - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 94,650 | $ 92,449 |
Less accumulated depreciation | (67,618) | (62,512) |
Total property and equipment, net | 27,032 | 29,937 |
Computers and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 17,191 | 18,337 |
Computer Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 35,476 | 30,812 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 10,466 | 10,365 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 31,517 | $ 32,935 |
Certain Balance Sheet Account_3
Certain Balance Sheet Accounts - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Amortization of capitalized internal use software costs | $ 4.9 | $ 5.1 | $ 4.2 |
Certain Balance Sheet Account_4
Certain Balance Sheet Accounts - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Payroll and related benefits | $ 43,575 | $ 45,340 |
Taxes | 8,324 | 5,320 |
Short-term operating lease liabilities | 11,972 | 12,208 |
Other | 12,749 | 16,989 |
Total | $ 76,620 | $ 79,857 |
Certain Balance Sheet Account_5
Certain Balance Sheet Accounts - Summary of Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities Noncurrent [Abstract] | ||
Deferred tax liability | $ 21,526 | $ 22,884 |
Other | 1,559 | 1,025 |
Total | $ 23,085 | $ 23,909 |
Certain Balance Sheet Account_6
Certain Balance Sheet Accounts - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Balance, beginning of year | $ 628 | $ 359 | $ 155 |
Cumulative effect adjustment of adopting Topic 326 | 218 | ||
Provision for doubtful accounts | 721 | 1,246 | 567 |
Write-offs | (850) | (987) | (356) |
Translation adjustments | (9) | 10 | (7) |
Balance, end of year | $ 708 | $ 628 | $ 359 |