COSTS, EXPENSES, AND OTHER

The table below sets forth the components of “Other, net” in the Condensed Consolidated Statements of Operations for the periods indicated.



	Three Months Ended
	March 31,
	2014			2013
	(In Thousands)
Accretion of asset retirement obligations	$	513		$	1,244
Write-off of debt issuance costs	3,323			—
Loss on debt extinguishment	—			25,223
Loss on asset disposition, net	794			—
Rig stacking/lease termination	5,184			3,038
Other, net	(1,166		)	(685		)
	$	8,648		$	28,820

Accretion of Asset Retirement Obligations

Accretion of asset retirement obligations is the expense recognized to increase the carrying amount of the liability associated with Forest’s asset retirement obligations as a result of the passage of time. Forest’s asset retirement obligations consist of costs related to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and natural gas properties.

Write-off of Debt Issuance Costs

On March 31, 2014 Forest entered into the Second Amendment to the Credit Facility, which was effective as of that date. The Second Amendment reduced aggregate lender commitments from $1.5 billion to $500.0 million, necessitating a proportionate write-off of $3.3 million in unamortized debt issuance costs associated with the Credit Facility prior to the Second Amendment.

Loss on Debt Extinguishment

In March 2013, Forest redeemed $300.0 million in principal amount of 8½% senior notes at 107.11% of par, recognizing a loss of $25.2 million upon redemption due to the $21.3 million call premium and write-off of $3.9 million of unamortized discount and debt issuance costs.

Loss on Asset Disposition, Net

In October 2013, Forest entered into an agreement to sell all of its oil and natural gas properties located in the Texas Panhandle for $1.0 billion in cash. This transaction closed in November 2013 and Forest has received net proceeds to-date of $965.1 million, after customary purchase price adjustments. For the year ended December 31, 2013, Forest recognized a net gain of $193.0 million on this divestiture. A net loss of $.8 million was recognized for the three months ended March 31, 2014 as customary post-closing purchase price adjustments were made.

Rig Stacking/Lease Termination

Rig stacking comprises the expenses incurred to operate and maintain drilling rigs, which Forest has historically leased under non-cancelable operating leases, that are not being utilized on capital projects. The three months ended March 31, 2014 includes cash expenses of $5.0 million related to the early termination of the operating leases on seven drilling rigs as well as $3.8 million of rig stacking expenses, primarily on those seven rigs prior to the lease termination date, for total cash expenses of $8.8 million. Also included in the lease termination expense for the three months ended March 31, 2014, is a non-cash write-off of $2.4 million primarily related to rig improvements Forest had made that were transferred with the drilling rigs at the lease termination date. Partially offsetting these expenses is a non-cash write-off of $6.1 million of unamortized deferred gains related to the drilling rigs whose leases were terminated. The deferred gains were initially recognized upon the sale leaseback transactions of these rigs in 2007 and 2010 and were being amortized over the lives of the leases. During the three months ended March 31, 2013, Forest incurred rig stacking expenses of $4.2 million.