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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
 
Stock-based Compensation 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 for the three and six months ended June 30, 2013 and 2012, and the remaining unamortized amounts and weighted average amortization period as of June 30, 2013.
 
 
Restricted
Stock
 
Performance
Units
 
Phantom
Stock Units
 
Total(1)(2)
 
(In Thousands)
Three Months Ended June 30, 2013:
 

 
 

 
 

 
 

Total stock-based compensation costs
$
3,210

 
$
1,105

 
$
513

 
$
4,828

Less: stock-based compensation costs capitalized
(1,172
)
 
(241
)
 
(218
)
 
(1,631
)
Stock-based compensation costs expensed
$
2,038

 
$
864

 
$
295

 
$
3,197

Six Months Ended June 30, 2013:
 

 
 

 
 

 
 

Total stock-based compensation costs
$
7,445

 
$
2,733

 
$
1,775

 
$
11,953

Less: stock-based compensation costs capitalized
(2,994
)
 
(714
)
 
(887
)
 
(4,595
)
Stock-based compensation costs expensed
$
4,451

 
$
2,019

 
$
888

 
$
7,358

Unamortized stock-based compensation costs(3)
$
20,149

 
$
11,252

 
$
8,562

 
$
39,963

Weighted average amortization period remaining
1.8 years

 
2.3 years

 
2.0 years

 
2.0 years

Three Months Ended June 30, 2012:
 

 
 

 
 

 
 

Total stock-based compensation costs
$
4,943

 
$
3,145

 
$
(1,046
)
 
$
7,042

Less: stock-based compensation costs capitalized
(1,487
)
 
(477
)
 
369

 
(1,595
)
Stock-based compensation costs expensed
$
3,456

 
$
2,668

 
$
(677
)
 
$
5,447

Six Months Ended June 30, 2012:
 

 
 

 
 

 
 

Total stock-based compensation costs
$
8,719

 
$
4,357

 
$
(113
)
 
$
12,963

Less: stock-based compensation costs capitalized
(3,195
)
 
(867
)
 
(130
)
 
(4,192
)
Stock-based compensation costs expensed
$
5,524

 
$
3,490

 
$
(243
)
 
$
8,771

____________________________________________
(1)
Forest also maintains an employee stock purchase plan (which is not included in the table) under which $.1 million and $.2 million of compensation cost was recognized for the three and six month periods ended June 30, 2013, respectively, and $.1 million and $.2 million of compensation cost was recognized for the three and six month periods ended June 30, 2012, respectively.
(2)
In connection with the divestiture of the South Texas oil and natural gas properties in the first quarter of 2013, Forest incurred one-time employee termination benefit costs that included $2.0 million ($1.0 million net of capitalized amounts) in stock-based compensation costs due to accelerated vesting of the affected awards. In addition to these stock-based compensation costs, in the first quarter of 2013, Forest incurred $7.5 million ($5.7 million net of capitalized amounts) in other one-time employee termination benefit costs related to this divestiture. All of these one-time employee termination benefit costs expenses are included in “General and administrative” in the Condensed Consolidated Statement of Operations for the six months ended June 30, 2013 and no further one-time employee termination benefit costs are expected to be made for this specific divestiture. See Note 5 for more information regarding this divestiture.
(3)
The unamortized stock-based compensation costs for liability-based awards are based on the closing price of Forest’s common stock at the reporting period end.
 
Stock Options
 
The following table summarizes stock option activity in the Plans for the six months ended June 30, 2013. 
 
Number of
Options
 
Weighted
Average Exercise
Price
 
Aggregate
Intrinsic Value
(In Thousands)(1)
 
Number of
Options
Exercisable
Outstanding at January 1, 2013
870,816

 
$
17.86

 
$
—

 
870,816

Granted
—

 
—

 
 

 
 

Exercised
—

 
—

 
—

 
 

Cancelled
(217,046
)
 
20.01

 
 

 
 

Outstanding at June 30, 2013
653,770

 
$
17.14

 
$
—

 
653,770

____________________________________________
(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 six months ended June 30, 2013.
 
 
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
 
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)
Unvested at January 1, 2013
2,721,637

 
$
17.64

 
 

 
939,180

 
$
15.20

 
 

 
1,161,737

 
$
9.91

 
 

Awarded(2)
2,151,877

 
6.04

 
 

 
1,182,500

 
5.47

 
 

 
1,619,401

 
6.43

 
 

Vested
(806,959
)
 
21.50

 
$
4,514

 
(203,240
)
 
19.60

 
$
—

 
(90,821
)
 
10.49

 
$
615

Forfeited
(174,335
)
 
16.00

 
 

 
—

 
—

 
 

 
(94,507
)
 
10.03

 
 

Unvested at June 30, 2013
3,892,220

 
$
10.50

 
 

 
1,918,440

 
$
8.74

 
 

 
2,595,810

 
$
7.71

 
 

 ____________________________________________
(1)
All of the unvested units of phantom stock at June 30, 2013 must be settled in cash. The phantom stock units have been accounted for as a liability within the Condensed Consolidated Financial Statements. All of the phantom stock units that vested during the six months ended June 30, 2013 were settled in cash.
(2)
Of the restricted stock shares granted during the six months ended June 30, 2013, 1,229,901 shares vest in increments of 33.3% on each of the first three anniversary dates of the grant. All other Forest restricted stock grants cliff vest on the third anniversary of the date of grant. Additionally, during the six months ended June 30, 2013, Forest granted 950,000 performance units that are cash-settled, with the settlement amount dependent upon Forest’s relative total shareholder return in comparison to an identified peer group over a thirty-six month performance period. These performance units have been accounted for as a liability within the Condensed Consolidated Financial Statements. All of the other outstanding performance units are share-settled and utilize the same relative total shareholder return criteria to determine the settlement amount, other than certain peers used for comparison purposes. The share-settled performance units have been accounted for as equity-based awards within the Condensed Consolidated Financial Statements.