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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
 
Equity Incentive Plans
 
Forest maintains the 2001 and 2007 Stock Incentive Plans (the “Plans”) under which qualified and non-qualified stock options, restricted stock, performance units, phantom stock units, and other awards may be granted to employees, consultants, and non-employee directors of Forest and its subsidiaries.

Compensation Costs
 
The table below sets forth stock-based compensation of continuing operations for the three and nine months ended September 30, 2012 and 2011, and the remaining unamortized amounts and weighted average amortization period as of September 30, 2012.
 
 
Stock
Options
 
Restricted
Stock
 
Performance
Units
 
Phantom
Stock Units
 
 
Total(1)
 
(In Thousands)
Three months ended September 30, 2012:
 

 
 

 
 

 
 

 
 
 

Total stock-based compensation costs
$
—

 
$
3,500

 
$
1,273

 
$
909

 
 
$
5,682

Less: stock-based compensation costs capitalized
—

 
(1,435
)
 
(455
)
 
(402
)
 
 
(2,292
)
Stock-based compensation costs expensed
$
—

 
$
2,065

 
$
818

 
$
507

 
 
$
3,390

Nine months ended September 30, 2012:
 

 
 

 
 

 
 

 
 
 

Total stock-based compensation costs
$
—

 
$
12,219

 
$
5,630

 
$
796

 
 
$
18,645

Less: stock-based compensation costs capitalized
—

 
(4,630
)
 
(1,322
)
 
(532
)
 
 
(6,484
)
Stock-based compensation costs expensed
$
—

 
$
7,589

 
$
4,308

 
$
264

 
 
$
12,161

Unamortized stock-based compensation costs
$
—

 
$
19,517

 
$
5,978

 
$
4,618

(2) 
 
$
30,113

Weighted average amortization period remaining
—

 
1.9 years

 
1.7 years

 
1.5 years

 
 
1.8 years

Three months ended September 30, 2011:
 

 
 

 
 

 
 

 
 
 

Total stock-based compensation costs
$
1,095

 
$
15,434

 
$
775

 
$
(1,456
)
 
 
$
15,848

Less: stock-based compensation costs capitalized
(437
)
 
(6,994
)
 
(253
)
 
529

 
 
(7,155
)
Stock-based compensation costs expensed
$
658

 
$
8,440

 
$
522

 
$
(927
)
 
 
$
8,693

Nine months ended September 30, 2011:
 

 
 

 
 

 
 

 
 
 

Total stock-based compensation costs
$
1,536

 
$
26,566

 
$
2,181

 
$
(1,788
)
 
 
$
28,495

Less: stock-based compensation costs capitalized
(663
)
 
(11,522
)
 
(683
)
 
696

 
 
(12,172
)
Stock-based compensation costs expensed
$
873

 
$
15,044

 
$
1,498

 
$
(1,092
)
 
 
$
16,323

____________________________________________
(1)
The Company also maintains an employee stock purchase plan (which is not included in the table) under which $.1 million and $.3 million of compensation cost was recognized for the three and nine month periods ended September 30, 2012, respectively, and $.1 million and $.4 million of compensation cost was recognized for the three and nine month periods ended September 30, 2011, respectively.
(2)
Based on the closing price of Forest’s common stock on September 30, 2012.
 
Stock Options
 
The following table summarizes stock option activity in the Plans for the nine months ended September 30, 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
(879,843
)
 
11.08

 
 

 
 

Outstanding at September 30, 2012
886,744

 
$
17.99

 
$
—

 
886,744

____________________________________________
(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.
 
Restricted Stock, Performance Units, and Phantom Stock Units
 
The following table summarizes the restricted stock, performance unit, and phantom stock unit activity in the Plans for the nine months ended September 30, 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
1,524,594

 
10.16

 
 

 
511,500

 
14.70

 
 

 
—

 
—

 
 

Vested
(891,207
)
 
19.46

 
$
7,236

 
(323,760
)
 
18.18

 
$
—

 
(274,897
)
 
12.23

 
$
2,313

Forfeited
(326,430
)
 
19.20

 
 

 
(181,680
)
 
17.55

 
 

 
(73,249
)
 
15.71

 
 

Unvested at September 30, 2012
2,781,069

 
$
18.43

 
 

 
661,180

 
$
16.97

 
 

 
890,671

 
$
14.85

 
 

 ____________________________________________
(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)
All of the unvested phantom stock units at September 30, 2012 must be settled in cash. The phantom stock units have been accounted for as a liability within the Condensed Consolidated Financial Statements. Of the 274,897 phantom stock units that vested during the nine months ended September 30, 2012, 268,817 were settled in cash, while the remaining 6,080 were settled in shares.