Long-term incentive compensation

9 Months Ended

Sep. 30, 2015

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, was attributed to the dialysis and related lab services business, the HCP business, corporate support costs, 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 nine months ended September 30, 2015, the Company granted 920 stock-settled stock appreciation rights with an aggregate grant-date fair value of $16,763 and a weighted-average expected life of approximately 4.1 years, and also granted 272 stock units with an aggregate grant-date fair value of $21,933 and a weighted-average expected life of approximately 3.1 years.

For the nine months ended September 30, 2015 and 2014, the Company recognized $100,171 and $88,323, respectively, in total LTIP expense, of which $42,794 and $44,323, 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 expenses. The estimated tax benefits recorded for stock-based compensation for the nine months ended September 30, 2015 and 2014 was $14,870 and $16,075, respectively. As of September 30, 2015, the Company had $145,914 of total estimated unrecognized compensation cost for outstanding LTIP awards, including $75,635 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 1.1 years and the stock-based component of these LTIP costs over a weighted average remaining period of 1.3 years.

For the nine months ended September 30, 2015 and 2014, the Company received $31,069 and $45,527, respectively, in actual tax benefits upon the exercise of stock awards.