Share-Based Compensation Plans	9 Months Ended
Sep. 30, 2015
Share-Based Compensation Plans	8. Share-Based Compensation Plans The company may grant a variety of share-based payments under the 2012 Long Term Incentive Plan of C. R. Bard, Inc., as amended and restated (the “LTIP”) and the 2005 Directors’ Stock Award Plan of C. R. Bard, Inc., as amended and restated (the “Directors’ Plan”) to certain directors, officers and employees. At the company’s Annual Meeting of Shareholders on April 15, 2015, the shareholders authorized an additional 1,500,000 shares for issuance under the LTIP. The total number of remaining shares at September 30, 2015 that may be issued under the LTIP was 6,377,456 and under the Directors’ Plan was 31,462. Awards under the LTIP may be in the form of stock options, stock appreciation rights, limited stock appreciation rights, restricted stock, unrestricted stock and other stock-based awards. Awards under the Directors’ Plan may be in the form of stock awards, stock options or stock appreciation rights. The company also has two employee stock purchase programs. For the quarters ended September 30, 2015 and 2014, amounts charged against income for share-based payment arrangements were $17.0 million and $16.3 million, respectively. For the nine months ended September 30, 2015 and 2014, amounts charged against income for share-based payment arrangements were $61.1 million and $53.0 million, respectively. In the first quarter of each of 2015 and 2014, the company granted performance restricted stock units to certain officers. These units have requisite service periods of three years and have no dividend rights. The actual payout of these units varies based on the company’s performance over the three-year period based on pre-established targets over the period and a market condition modifier based on total shareholder return (“TSR”) compared to an industry peer group. The actual payout under these awards may exceed an officer’s target payout; however, compensation cost initially recognized assumes that the target payout level will be achieved and may be adjusted for subsequent changes in the expected outcome of the performance-related condition. The fair values of these units are based on the market price of the company’s stock on the date of the grant and use a Monte Carlo simulation model for the TSR component. The fair values of the TSR components of the 2015 and 2014 grants were estimated based on the following assumptions: risk-free interest rate of 0.86% and 0.70%, respectively; dividend yield of 0.51% and 0.62%, respectively; and expected life of 2.78 and 2.88 years, respectively. Anticipated purchases under the Management Stock Purchase Program (the “MSPP”) are approximately 0.2 million shares for the 2015 grant. Purchases under the MSPP were approximately 0.2 million shares for the 2014 grant. The fair value of the 2015 annual MSPP purchases was $60.47 per share and was estimated in July 2015. The fair value of the 2014 annual MSPP purchases was $51.82 per share. These fair value calculations used the Black-Scholes model based on the following assumptions: risk free interest rate of 0.16% and 0.07%, respectively; expected volatility of 17% and 20%, respectively; dividend yield of 0.6% for both valuations; and expected life of 0.6 years for both valuations. As of September 30, 2015, there were $95.2 million of unrecognized compensation expenses related to share-based payment arrangements. These costs are expected to be recognized over a weighted-average period of approximately two years. The company has sufficient shares to satisfy expected share-based payment arrangements in 2015.

Share-Based Compensation Plans

9 Months Ended

Sep. 30, 2015

8. Share-Based Compensation Plans

The company may grant a variety of share-based payments under the 2012 Long Term Incentive Plan of C. R. Bard, Inc., as amended and restated (the “LTIP”) and the 2005 Directors’ Stock Award Plan of C. R. Bard, Inc., as amended and restated (the “Directors’ Plan”) to certain directors, officers and employees. At the company’s Annual Meeting of Shareholders on April 15, 2015, the shareholders authorized an additional 1,500,000 shares for issuance under the LTIP. The total number of remaining shares at September 30, 2015 that may be issued under the LTIP was 6,377,456 and under the Directors’ Plan was 31,462. Awards under the LTIP may be in the form of stock options, stock appreciation rights, limited stock appreciation rights, restricted stock, unrestricted stock and other stock-based awards. Awards under the Directors’ Plan may be in the form of stock awards, stock options or stock appreciation rights. The company also has two employee stock purchase programs.

For the quarters ended September 30, 2015 and 2014, amounts charged against income for share-based payment arrangements were $17.0 million and $16.3 million, respectively. For the nine months ended September 30, 2015 and 2014, amounts charged against income for share-based payment arrangements were $61.1 million and $53.0 million, respectively.

In the first quarter of each of 2015 and 2014, the company granted performance restricted stock units to certain officers. These units have requisite service periods of three years and have no dividend rights. The actual payout of these units varies based on the company’s performance over the three-year period based on pre-established targets over the period and a market condition modifier based on total shareholder return (“TSR”) compared to an industry peer group. The actual payout under these awards may exceed an officer’s target payout; however, compensation cost initially recognized assumes that the target payout level will be achieved and may be adjusted for subsequent changes in the expected outcome of the performance-related condition. The fair values of these units are based on the market price of the company’s stock on the date of the grant and use a Monte Carlo simulation model for the TSR component. The fair values of the TSR components of the 2015 and 2014 grants were estimated based on the following assumptions: risk-free interest rate of 0.86% and 0.70%, respectively; dividend yield of 0.51% and 0.62%, respectively; and expected life of 2.78 and 2.88 years, respectively.

Anticipated purchases under the Management Stock Purchase Program (the “MSPP”) are approximately 0.2 million shares for the 2015 grant. Purchases under the MSPP were approximately 0.2 million shares for the 2014 grant. The fair value of the 2015 annual MSPP purchases was $60.47 per share and was estimated in July 2015. The fair value of the 2014 annual MSPP purchases was $51.82 per share. These fair value calculations used the Black-Scholes model based on the following assumptions: risk free interest rate of 0.16% and 0.07%, respectively; expected volatility of 17% and 20%, respectively; dividend yield of 0.6% for both valuations; and expected life of 0.6 years for both valuations.

As of September 30, 2015, there were $95.2 million of unrecognized compensation expenses related to share-based payment arrangements. These costs are expected to be recognized over a weighted-average period of approximately two years. The company has sufficient shares to satisfy expected share-based payment arrangements in 2015.