NOTE 8 – EMPLOYEE BENEFITS

Healthcare

We participate in multiple healthcare plans, of which our primary plan is partially self-funded with an insurance company paying benefits in excess of stop loss limits per individual. Our healthcare benefit expense (net of employee contributions) was approximately $15.2 million, $11.8 million and $8.1 million for the years ended December 31, 2016, 2015 and 2014, respectively, for all plans. An accrual for estimated healthcare claims incurred but not reported (“IBNR”) is included within accrued compensation on the Consolidated Balance Sheets and was $1.7 million and $1.5 million as of December 31, 2016 and 2015, respectively.

Workers’ Compensation

We participate in multiple workers’ compensation plans. Under these plans, we use a high deductible program to cover losses above the deductible amount on a per claim basis. We accrue for the estimated losses occurring from both asserted and unasserted claims. Workers’ compensation liability for premiums is included in other current liabilities on the Consolidated Balance Sheets. Insurance claims and reserves include accruals of estimated settlements for known claims, as well as accruals of actuarial estimates of IBNR claims. In estimating these reserves, historical loss experience and judgments about the expected levels of costs per claim are considered. These claims are accounted for based on actuarial estimates of the undiscounted claims, including IBNR. We believe the use of actuarial methods to account for these liabilities provides a consistent and effective way to measure these highly judgmental accruals.

Workers’ compensation expense totaled $12.1 million, $12.0 million and $9.8 million for the years ended December 31, 2016, 2015 and 2014, respectively, and is included in cost of sales on the Consolidated Statements of Operations. Workers’ compensation known claims and IBNR reserves included on the Consolidated Balance Sheets were as follows (in thousands):


	As of December 31,
	2016		2015
Included in other current liabilities	$	4,595	$	3,263
Included in other long-term liabilities		7,052		7,132

	$	11,647	$	10,395

We also had an insurance receivable for claims that exceeded the stop loss limit included on the Consolidated Balance Sheets. That receivable offsets an equal liability included within the reserve amounts noted above and was as follows (in thousands):


	As of December 31,
	2016		2015
Included in other non-current assets	$	1,249	$	1,542

Profit-Sharing Plans

We also participate in various profit-sharing and 401(k) plans. Certain plans provide that eligible employees can defer a portion of their wages into the trust, subject to current Internal Revenue Code rules and limitations. We provide a matching contribution of wages deferred by employees and can also make discretionary contributions to each plan. Certain plans allow for discretionary employer contributions only. These plans cover substantially all our eligible employees. During the years ended December 31, 2016, 2015 and 2014, we recognized 401(k) plan expenses of $1.3 million, $0.8 million and $0.7 million, respectively, which is included in administrative expenses on the accompanying Consolidated Statements of Operations.

Share-Based Compensation

Directors

We periodically grant shares of restricted stock to members of our board of directors. Accordingly, we record compensation expense within administrative expenses on the Consolidated Statements of Operations at the time of the grant.

In 2016 and 2015, we granted approximately nine thousand and 13 thousand shares of restricted stock, respectively, at a price of $34.23 and $22.74 per share, respectively (which represents market price on the grant dates), to non-employee members of our board of directors. Accordingly, for each of the years ended December 31, 2016 and 2015, we recorded $0.3 million in compensation expense related to these grants within administrative expenses on the Consolidated Statements of Operations. These shares effectively vested on the grant date since there is deemed to be no service period associated with these awards. The lack of a vesting or service period may not apply to any future share grants under our 2014 Omnibus Incentive Plan.

The weighted-average grant date fair value is the same as the issue price for all shares.

Employees

During the twelve months ended December 31, 2016, we granted approximately 0.1 million shares of restricted stock which vest in three equal installments (rounded to the nearest whole share) on each of April 20, 2017, 2018 and 2019 to certain employees. During the twelve months ended December 31, 2015, we granted approximately 0.1 million shares of restricted stock which fully vested between January 7, 2016 and March 31, 2016 for certain employees and vests in three equal installments (rounded to the nearest whole share) on each of March 31, 2016, 2017 and 2018 for certain officers.

During the twelve months ended December 31, 2016, our employees surrendered approximately 32 thousand shares of our common stock to satisfy tax withholding obligations arising in connection with the vesting of such common stock awards previously issued under our 2014 Omnibus Incentive Plan. We recorded $1.6 million and $1.8 million in compensation expense related to these grants within administrative expenses on the Consolidated Statements of Operations for the years ended December 31, 2016 and 2015, respectively. We recognized excess tax benefits within income tax provision on the Consolidated Statements of Operations of approximately $0.3 million for the year ended December 31 2016. We did not recognize any such excess tax benefits for the year ended December 31, 2015.

Nonvested restricted stock for employees as of December 31, 2016 was as follows:


	Restricted Stock Awards			Weighted Average Grant Date Fair Market Value Per Share
Nonvested restricted stock at December 31, 2015		129,053		$	21.52
Granted		143,528			26.98
Vested		(109,473	)		21.48
Forfeited		(1,934	)		25.75

Nonvested restricted stock at December 31, 2016		161,174		$	26.36

As of December 31, 2016, there was $3.1 million of unrecognized compensation expense related to nonvested restricted stock. This expense is subject to future adjustments for forfeitures and is expected to be recognized on a straight-line basis over the remaining weighted-average period of 2.2 years. Shares forfeited are returned as treasury shares and available for future issuances.

As of December 31, 2016, approximately 2.7 million of the 3.0 million shares of common stock authorized for issuance were available for issuance under the 2014 Omnibus Incentive Plan.