In May 1999, Forrester invested $1.0 million in a holding company that is the majority shareholder of Greenfield Online, Inc. (Greenfield), an Internet-based marketing research firm. As a result of this investment, Forrester effectively owned approximately a 3.4% ownership interest in Greenfield. In March 2000 and June 2000, Forrester entered into additional Note and Warrant Agreements with Greenfield. Pursuant to these agreements, Forrester loaned Greenfield an aggregate of $216,000 bearing interest at 10% per annum. Forrester also received warrants to purchase additional equity in Greenfield. In August 2000, and concurrent with an additional round of financing in which Forrester did not participate, the notes, related accrued interest, and warrants were all converted into common stock such that Forrester’s effective ownership interest in Greenfield was approximately 3.1%.  Forrester has determined that as of December 31, 2000, its ownership interest in Greenfield has been impaired due to its decision not to participate in an additional round of financing at a significantly lower valuation. As a result of this new valuation, Forrester recorded a one-time charge of $950,000 to other income in the accompanying statement of income for the period ended December 31, 2000 in order to reflect the permanent impairment of this investment.  During the years ended December 31, 1999 and 2000, Forrester charged approximately $220,000 and $399,000, respectively, to the cost of services and fulfillment related to services provided by Greenfield. Forrester accounts for income taxes in accordance with SFAS No. 109,  Accounting for Income Taxes . SFAS No. 109 prescribes an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Income before income tax provision consists of the following (in thousands): (6) Income Taxes The components of the income tax provisions (benefits) for the years ended December 31, 1998, 1999, and 2000 are as follows (in thousands): 1998 1999 2000 Current — Federal $3,800 $5,497 $11,031 State 504 628 1,463 Foreign — — 968 4,304 6,125 13,462 Deferred — Federal 255 415 (471) State 33 49 (139) Foreign — — (429) 288 464 (1,039) Income tax provision $4,592 $6,589 $12,423 1998 1999 2000 Domestic $12,239 $16,811 $31,570 Foreign (100) 759 2,467 Total $12,139 $17,570 $34,037