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Equity

6 Months Ended

Jun. 30, 2011

Note 4— Equity

Equity-based Compensation

Equity-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over each employee’s requisite service period. The following compensation expense was included in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2011 and 2010 (in thousands):

	Three months ended				Six months ended
	June 30,				June 30,
	2011		2010		2011		2010
Equity-based compensation expense	$	4,063	$	2,523	$	7,161	$	4,389

As a result of the sale of our Metrology segment to Bruker, equity-based compensation expense related to Metrology employees totaling $0.4 million and $0.7 million has been classified as discontinued operations in determining the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2010, respectively.

As of June 30, 2011, the total unrecognized compensation costs related to nonvested stock and stock option awards was $20.0 million and $18.1 million, respectively. The related weighted average period over which we expect that such unrecognized compensation costs will be recognized is approximately 3.3 years for nonvested stock awards and 2.2 years for option awards.

Stock Option and Restricted Stock Activity

A summary of our restricted stock awards including restricted stock units for the six months ended June 30, 2011, is presented below:

	Shares (000’s)		Weighted- Average Grant-Date Fair Value
Nonvested at December 31, 2010	616		$	19.06
Granted	271		51.36
Vested	(156	)	13.78
Forfeited (including cancelled awards)	(4	)	21.93
Nonvested at June 30, 2011	727		$	32.23

A summary of our stock option awards for the six months ended June 30, 2011, is presented below:

	Shares (000s)		Weighted- Average Exercise Price		Aggregate Intrinsic Value (000s)		Weighted- Average Remaining Contractual Life (in years)
Outstanding at December 31, 2010	2,569		$	19.71
Granted	354		51.00
Exercised	(560	)	15.67
Forfeited (including cancelled options)	(31	)	30.37
Outstanding at June 30, 2011	2,332		$	25.28	$	52,117	6.3
Options exercisable at June 30, 2011	1,050		$	17.65	$	30,839	4.8

Treasury Stock

On August 24, 2010, our Board of Directors authorized the repurchase of up to $200 million of our common stock until August 26, 2011. Repurchases are expected to be made from time to time on the open market in accordance with applicable federal securities laws. The timing of repurchases and the exact number of shares of common stock to be purchased will depend upon market conditions, SEC regulations, and other factors. The repurchases will be funded using the Company’s available cash balances and cash generated from operations. The program does not obligate the Company to acquire any particular amount of common stock and may be modified or suspended at any time at the Company’s discretion. During the three months ended June 30, 2011, we purchased 165,288 shares for $7.8 million (including transaction costs) under the program at an average cost of $46.91 per share. This stock repurchase is included as a reduction to Equity in the Condensed Consolidated Balance Sheet. At June 30, 2011, there remained $154.1 million of authorization for future repurchases.

Subsequent to quarter end, through July 26, 2011, we have purchased 1,703,628 shares for $71.9 million (including transaction costs) under the program at an average cost of $42.21 per share.