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Long-term incentive compensation
3 Months Ended
Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Long-term incentive compensation
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 Company’s U.S. dialysis and related lab services business, DMG business, corporate administrative support, and the other 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, 2017, the Company granted 244 stock-settled stock appreciation rights with an aggregate grant-date fair value of $3,453 and a weighted average expected life of approximately 4.1 years, and also granted 54 stock-settled restricted stock units with an aggregate grant-date fair value of $3,679 and a weighted-average expected life of approximately 2.5 years.
For the three months ended March 31, 2017 and 2016, the Company recognized $17,166 and $24,745, respectively, in total LTIP expense, of which $9,601 and $13,097, respectively, represented stock-based compensation expense for stock appreciation rights, restricted 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, 2017 and 2016 was $3,300 and $4,539, respectively. As of March 31, 2017, the Company had $91,479 of total estimated but unrecognized compensation expense for outstanding LTIP awards, including $60,244 related to stock-based compensation arrangements under the Company’s equity compensation and employee 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 year and the stock-based component of these LTIP costs over a weighted average remaining period of 1.3 years.
For the three months ended March 31, 2017 and 2016, the Company received $1,091 and $8,668, respectively, in actual tax benefits upon the exercise of stock awards.