Long-term incentive compensation

3 Months Ended

Mar. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

11.	Long-term incentive compensation

Long-term incentive program (LTIP) compensation includes both stock-based awards (principally stock-settled stock appreciation rights, restricted stock units and performance stock units) as well as long-term performance-based cash awards. Long-term incentive compensation expense, which was primarily general and administrative in nature, is attributed among the U.S. dialysis and related lab services business, the HCP business, corporate administrative support, and the ancillary services and strategic initiatives.

The Company’s stock-based compensation awards are measured at their estimated fair values on the date of grant if settled in shares or at their estimated fair values at the end of each reporting period if settled in cash. The value of stock-based awards so measured is recognized as compensation expense on a cumulative straight-line basis over the vesting terms of the awards, adjusted for expected forfeitures.

During the three months ended March 31, 2016, the Company granted 104 stock-settled stock appreciation rights with an aggregate grant-date fair value of $1,432 and a weighted-average expected life of approximately 4.2 years, and also granted 16 stock units with an aggregate grant-date fair value of $1,133 and a weighted-average expected life of approximately 2.8 years.

For the three months ended March 31, 2016 and 2015, the Company recognized $24,745 and $33,451, respectively, in total LTIP expense, of which $13,097 and $12,762, respectively, represented stock-based compensation expense for stock appreciation rights, stock units and discounted employee stock plan purchases, which are primarily included in general and administrative expense. The estimated tax benefits recorded for stock-based compensation for the three months ended March 31, 2016 and 2015 was $4,539 and $4,458, respectively. As of March 31, 2016, the Company had $107,824 of total estimated unrecognized compensation costs for outstanding LTIP awards, including $58,688 related to stock-based compensation arrangements under the Company’s equity compensation and stock purchase plans. The Company expects to recognize the performance-based cash component of these LTIP costs over a weighted average remaining period of 1.0 years and the stock-based component of these LTIP costs over a weighted average remaining period of 1.2 years.

For the three months ended March 31, 2016 and 2015, the Company received $8,668 and $9,366, respectively, in actual tax benefits upon the exercise of stock awards.