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STOCK-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of stock-based compensation recorded, remaining unamortized amounts and weighted average amortization period
The table below sets forth stock-based compensation of continuing operations for the three months ended March 31, 2012 and 2011, and the remaining unamortized amounts and weighted average amortization period as of March 31, 2012.
 
 
Stock
Options
 
Restricted
Stock
 
Performance
Units
 
Phantom
Stock Units
 
 
Total(1)(2)
 
(In Thousands)
Three months ended March 31, 2012:
 

 
 

 
 

 
 

 
 
 

Total stock-based compensation costs
$
—

 
$
3,776

 
$
1,212

 
$
933

 
 
$
5,921

Less: stock-based compensation costs capitalized
—

 
(1,708
)
 
(390
)
 
(499
)
 
 
(2,597
)
Stock-based compensation costs expensed
$
—

 
$
2,068

 
$
822

 
$
434

 
 
$
3,324

Unamortized stock-based compensation costs
$
—

 
$
23,703

 
$
13,197

 
$
9,091

(3) 
 
$
45,991

Weighted average amortization period remaining
—

 
2.1 years

 
2.1 years

 
1.7 years

 
 
2.0 years

Three months ended March 31, 2011:
 

 
 

 
 

 
 

 
 
 

Total stock-based compensation costs
$
163

 
$
6,369

 
$
639

 
$
588

 
 
$
7,759

Less: stock-based compensation costs capitalized
(71
)
 
(2,591
)
 
(179
)
 
(200
)
 
 
(3,041
)
Stock-based compensation costs expensed
$
92

 
$
3,778

 
$
460

 
$
388

 
 
$
4,718

____________________________________________
(1)
The Company also maintains an employee stock purchase plan (which is not included in the table) under which $.1 million of compensation cost was recognized in each of the three-month periods ended March 31, 2012 and 2011.
(2)
In addition to the compensation costs set forth in the table above, in June 2011 and March 2012 the Company granted cash-based long-term incentive awards under which a negligible amount of compensation cost was recognized during the three months ended March 31, 2012 due primarily to a reduction in Forest’s common stock price, and under which $.5 million remains as unamortized stock-based compensation costs at March 31, 2012.  The awards are comprised of time-based and performance-based components.  Under the time-based component, a cash payment will be made three years after the date of grant dependent on the change in the market value of Forest’s common stock during the three-year period, and under the performance-based component, a cash payment will be made three years after the date of grant dependent on the total shareholder return on Forest’s common stock in comparison to that of a peer group during the three-year period.
(3)
Based on the closing price of Forest’s common stock on March 31, 2012.
Stock option activity in the entity's stock based compensation plans
The following table summarizes stock option activity in the Plans for the three months ended March 31, 2012. 
 
Number of
Options
 
Weighted
Average Exercise
Price
 
Aggregate
Intrinsic Value
(In Thousands)(1)
 
Number of
Options
Exercisable
Outstanding at January 1, 2012
1,766,587

 
$
14.55

 
$
2,731

 
1,766,587

Granted
—

 
—

 
 

 
 

Exercised
—

 
—

 
—

 
 

Cancelled
(6,776
)
 
17.29

 
 

 
 

Outstanding at March 31, 2012
1,759,811

 
$
14.54

 
$
1,540

 
1,759,811

____________________________________________
(1)
The intrinsic value of a stock option is the amount by which the market value of the underlying stock, as of the date outstanding or exercised, exceeds the exercise price of the option.
Summary of restricted stock, performance units, and phantom stock units activity
The following table summarizes the restricted stock, performance unit, and phantom stock unit activity in the Plans for the three months ended March 31, 2012.
 
 
Restricted Stock
 
Performance Units
 
Phantom Stock Units
 
Number of
Shares
 
Weighted
Average
Grant
Date
Fair
Value
 
Vest Date
Fair
Value
(In
Thousands)
 
Number
of
Units(1)
 
Weighted
Average
Grant
Date
Fair
Value
 
Vest Date
Fair
Value
(In
Thousands)
 
Number
of
Units(2)
 
Weighted
Average
Grant
Date
Fair
Value
 
Vest Date
Fair
Value
(In
Thousands)
Unvested at January 1, 2012
2,474,112

 
$
24.00

 
 

 
655,120

 
$
19.50

 
 

 
1,238,817

 
$
14.32

 
 

Awarded
547,025

 
12.46

 
 

 
511,500

 
14.70

 
 

 
—

 
—

 
 

Vested
(19,980
)
 
23.71

 
$
246

 
—

 
—

 
$
—

 
(8,468
)
 
15.71

 
$
105

Forfeited
(18,735
)
 
23.86

 
 

 
—

 
—

 
 

 
(3,995
)
 
16.44

 
 

Unvested at March 31, 2012
2,982,422

 
$
21.89

 
 

 
1,166,620

 
$
17.39

 
 

 
1,226,354

 
$
14.30

 
 

 ____________________________________________
(1)
Forest granted 511,500 performance units on March 12, 2012, with a grant date fair value of $14.70 each. Under the terms of the award agreements, each performance unit represents a contractual right to receive one share of Forest’s common stock; provided that the actual number of shares that may be deliverable under an award will range from 0% to 200% of the number of performance units awarded, depending on Forest’s relative total shareholder return in comparison to an identified peer group during the thirty-six-month performance period ending on February 28, 2015.
(2)
Of the unvested phantom stock units at March 31, 2012, 6,080 units can be settled in cash, shares of common stock, or a combination of both, while the remaining 1,220,274 units can only be settled in cash. The phantom stock units have been accounted for as a liability within the Condensed Consolidated Financial Statements. All of the 8,468 phantom stock units that vested during the three months ended March 31, 2012 were settled in cash.