Note 16—Stock-Based Compensation

In February 2010, the Bruker BioSciences Corporation Amended and Restated 2000 Stock Option Plan (the "2000 Plan"), expired at the end of its scheduled ten-year term. On March 9, 2010, the Company's Board of Directors unanimously approved and adopted the Bruker Corporation 2010 Incentive Compensation Plan (the "2010 Plan"), and on May 14, 2010, the 2010 Plan was approved by the Company's stockholders. The 2010 Plan provided for the issuance of up to 8,000,000 shares of the Company's common stock. The 2010 Plan allowed a committee of the Board of Directors (the "Compensation Committee") to grant incentive stock options, non-qualified stock options and restricted stock awards. The Compensation Committee had the authority to determine which employees would receive the awards, the amount of the awards and other terms and conditions of any awards. Awards granted under the 2010 Plan typically were made subject to a vesting period of three to five years.

In May 2016, the Bruker Corporation 2016 Incentive Compensation Plan (the "2016 Plan") was approved by the Company's stockholders. With the approval of the 2016 Plan, no further grants will be made under the 2010 Plan. The 2016 Plan provides for the issuance of up to 9,500,000 shares of the Company's common stock and permits the grant of awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares and performance units, as well as cash-based awards. The 2016 Plan is administered by the Compensation Committee. The Compensation Committee has the authority to determine which employees will receive awards, the amount of any awards, and other terms and conditions of such awards. Awards granted under the 2016 Plan typically vest over a period of three to four years.

Stock option activity for the year ended December 31, 2016 was as follows:

	Shares Subject to Options			Weighted Average Option Price		Weighted Average Remaining Contractual Term (Yrs)		Aggregate Intrinsic Value (in millions) (b)
Outstanding at December 31, 2015		4,637,279		$	16.72
Granted		1,070,266			23.08
Exercised		(895,078	)		13.43
Forfeited/Expired		(186,789	)		19.15

Outstanding at December 31, 2016		4,625,678		$	18.73		6.7	$	13.6


Exercisable at December 31, 2016		2,287,488		$	16.02		5.1	$	11.9


Exercisable and expected to vest at December 31, 2016 (a)		4,479,307		$	18.64		6.6	$	13.5


(a)	In addition to the options that are vested at December 31, 2016, the Company expects a portion of the unvested options to vest in the future. Options expected to vest in the future are determined by applying an estimated forfeiture rate to the options that are unvested as of December 31, 2016.
(b)	The aggregate intrinsic value is based on the positive difference between the fair value of the Company's common stock price of $21.18 on December 31, 2016, or the date of exercises, as appropriate, and the exercise price of the underlying stock options.

The weighted average fair value of options granted was $7.72, $7.82 and $10.81 per share for the years ended December 31, 2016, 2015 and 2014, respectively.

The total intrinsic value of options exercised was $11.2 million, $8.2 million and $10.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Unrecognized pre-tax stock-based compensation expense of $15.0 million related to stock options awarded under the 2010 and 2016 Plans is expected to be recognized over the weighted average remaining service period of 2.62 years for stock options outstanding at December 31, 2016.

Restricted shares of the Company's common stock are periodically awarded to executive officers, directors and certain key employees of the Company, subject to service restrictions, which vest ratably over periods of one to five years. The restricted shares of common stock may not be sold or transferred during the restriction period. Stock-based compensation for restricted stock is recorded based on the stock price on the grant date and charged to expense ratably throughout the restriction period.

The following table summarizes information about restricted stock award activity during the year ended December 31, 2016:

	Shares Subject to Restriction			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2015		243,150		$	18.58
Granted		13,105			24.80
Vested		(82,374	)		17.95
Forfeited		(1,375	)		16.57

Outstanding at December 31, 2016		172,506		$	19.37

The total fair value of restricted stock vested was $1.5 million, $1.0 million and $3.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Unrecognized pre-tax stock-based compensation expense of $2.5 million related to restricted stock awarded under the 2010 Plan is expected to be recognized over the weighted average remaining service period of 2.15 years for awards outstanding at December 31, 2016.

The following table summarizes information about restricted stock unit activity for year ended December 31, 2016:

	Shares Subject to Restriction			Weighted Average Grant Date Fair Value
Outstanding at December 31, 2015		—		$	—
Granted		262,475			22.33
Vested		—			—
Forfeited		(158	)		26.29

Outstanding at December 31, 2016		262,317		$	22.32

No restricted stock units vested in the year ended December 31, 2016. Unrecognized pre-tax stock-based compensation expense of $5.1 million related to restricted stock units awarded under the 2016 Plan is expected to be recognized over the weighted average remaining service period of 3.75 years for units outstanding at December 31, 2016.