XML 48 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
STOCK-BASED COMPENSATION (Tables)
 6 Months Ended
Jun. 30, 2014
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 for the three and six months ended June 30, 2014 and 2013, and the remaining unamortized amounts and weighted average amortization period as of June 30, 2014.
 
 
Restricted
Stock
 
Performance
Units
 
Phantom
Stock Units
 
Total(1)(2)
 
(In Thousands)
Three Months Ended June 30, 2014:
 

 
 

 
 

 
 

Total stock-based compensation costs
$
1,605

 
$
598

 
$
428

 
$
2,631

Less: stock-based compensation costs capitalized
(604
)
 
(122
)
 
(158
)
 
(884
)
Stock-based compensation costs expensed
$
1,001

 
$
476

 
$
270

 
$
1,747

Six Months Ended June 30, 2014:
 

 
 

 
 

 
 

Total stock-based compensation costs
$
3,176

 
$
600

 
$
603

 
$
4,379

Less: stock-based compensation costs capitalized
(1,403
)
 
(128
)
 
(272
)
 
(1,803
)
Stock-based compensation costs expensed
$
1,773

 
$
472

 
$
331

 
$
2,576

Unamortized stock-based compensation costs(3)
$
5,887

 
$
2,294

 
$
2,113

 
$
10,294

Weighted average amortization period remaining
1.2 years

 
1.5 years

 
1.6 years

 
1.3 years

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

____________________________________________
(1)
Forest also maintains an employee stock purchase plan (which is not included in the table) under which $.02 million and $.1 million of compensation cost was recognized for the three and six months ended June 30, 2014, respectively, and $.1 million and $.2 million of compensation cost was recognized for the three and six months ended June 30, 2013, respectively.
(2)
In connection with the divestiture of the South Texas oil and natural gas properties in the first quarter of 2013, Forest incurred $2.0 million ($1.0 million net of capitalized amounts) in stock-based compensation costs due to accelerated vesting of involuntarily terminated employees’ awards. 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 option activity in the entity's stock based compensation plans
The following table summarizes stock option activity in the Plans for the six months ended June 30, 2014. 
 
Number of
Options
 
Weighted
Average Exercise
Price
 
Aggregate
Intrinsic Value
(In Thousands)(1)
 
Number of
Options
Exercisable
Outstanding at January 1, 2014
631,206

 
$
17.21

 
$
—

 
631,206

Granted
—

 
—

 
 

 
 

Exercised
—

 
—

 
—

 
 

Cancelled
(237,100
)
 
13.86

 
 

 
 

Outstanding at June 30, 2014
394,106

 
$
19.23

 
$
—

 
394,106

____________________________________________
(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 six months ended June 30, 2014.
 
 
Restricted Stock
 
Performance Units
 
Phantom Stock Units
 
Number of
Shares(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)
 
Number
of
Units(3)
 
Weighted
Average
Grant
Date
Fair
Value
 
Vest Date
Fair
Value
(In
Thousands)
Unvested at January 1, 2014
2,790,542

 
$
10.23

 
 

 
1,511,140

 
$
8.48

 
 

 
1,924,819

 
$
6.75

 
 

Awarded
407,202

 
2.22

 
 

 
—

 
—

 
 

 
67,000

 
3.51

 
 

Vested
(905,882
)
 
14.41

 
$
2,455

 
(63,840
)
 
18.11

 
$
—

 
(343,583
)
 
7.07

 
$
1,127

Forfeited
(297,954
)
 
10.29

 
 

 
(170,300
)
 
9.33

 
 

 
(184,139
)
 
7.54

 
 

Unvested at June 30, 2014
1,993,908

 
$
6.69

 
 

 
1,277,000

 
$
7.89

 
 

 
1,464,097

 
$
6.43

 
 

 ____________________________________________
(1)
Of the unvested restricted stock as of June 30, 2014, 436,956 shares, which were granted in 2013, vest in one-third increments on each of the first three anniversary dates of the grant. All other unvested shares of restricted stock cliff vest on the third anniversary of the date of grant.
(2)
Of the unvested performance units as of June 30, 2014, 598,500, which were granted in 2013, are cash-based and the remaining unvested performance units are share-based. For both cash- and share-based performance units, the actual settlement amount is dependent upon Forest’s relative total shareholder return in comparison to a specified peer group over a thirty-six month performance period. The cash-based performance units are accounted for as a liability within the Condensed Consolidated Financial Statements.
(3)
All of the unvested phantom stock units as of June 30, 2014 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, 2014 were settled in cash. Of the unvested phantom stock units as of June 30, 2014, (i) 122,509 were granted in 2011 and 466,588 were granted in 2013 and vest in one-third increments on each of the first three anniversaries of the grant date, (ii) 493,000 were granted in 2013 and 67,000 were granted in 2014 and cliff vest on the third anniversary of the grant date, and (iii) 270,000 were granted in 2012 and 45,000 were granted in 2013 and vest over a four-year period in accordance with the following schedule: (a) 10% on the first anniversary of the grant date; (b) 20% on the second anniversary of the grant date; (c) 30% on the third anniversary of the grant date; and (d) 40% on the fourth anniversary of the grant date.