Equity

6 Months Ended

Jun. 30, 2012

Equity

Equity

Note 3— 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, 2012 and 2011 (in thousands):

	Three months ended				Six months ended
	June 30,				June 30,
	2012		2011		2012		2011
Equity-based compensation expense	$	4,014	$	3,717	$	7,144	$	6,517

As a result of the discontinuance of our CIGS solar systems business, equity-based compensation expense related to the business totaling $0.3 million and $0.6 million has been classified as discontinued operations in determining the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2011, respectively.

As of June 30, 2012, the total unrecognized compensation costs related to nonvested stock and stock option awards was $21.8 million and $18.5 million, respectively. The related weighted average period over which we expect that such unrecognized compensation costs will be recognized is approximately 3.1 years for nonvested stock awards and 2.3 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, 2012, is presented below:

	Shares  (000’s)		Weighted- Average  Grant-Date  Fair Value
Nonvested as of December 31, 2011	618		$	33.61
Granted	307		32.64
Vested	(133	)	19.42
Forfeited (including cancelled awards)	(31	)	32.79
Nonvested as of June 30, 2012	761		$	35.73

A summary of our stock option awards for the six months ended June 30, 2012, is presented below:

	Shares  (000s)		Weighted- Average  Exercise  Price		Aggregate  Intrinsic  Value  (000s)		Weighted-  Average  Remaining  Contractual  Life  (in years)
Outstanding as of December 31, 2011	2,106		$	25.58
Granted	687		32.56
Exercised	(143	)	15.05
Forfeited (including cancelled options)	(52	)	31.06
Outstanding as of June 30, 2012	2,598		$	27.90	$	22,593	6.7
Options exercisable as of June 30, 2012	1,414		$	20.89	$	20,823	4.8

Treasury Stock

On August 24, 2010, our Board of Directors authorized the repurchase of up to $200 million of our common stock. 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. All funds for this repurchase program were exhausted as of August 19, 2011. Repurchases were made from time to time on the open market in accordance with applicable federal securities laws. During the three months ended June 30, 2012, we cancelled and retired the 5,278,828 shares of treasury stock we purchased under the repurchase program. As a result of this transaction, we recorded a reduction in treasury stock of $200.2 million and a corresponding reduction of $200.1 million and $0.1 million in retained earnings and common stock, respectively.