SEC Filings

10-Q
ENVISION HEALTHCARE CORP filed this Form 10-Q on 11/03/2017
Entire Document
 
Item 1. Financial Statements - (continued)

The fair value of each stock option award converted as part of the Merger was calculated on the merger date, December 1, 2016, using the Black-Scholes valuation model with the following assumptions indicated in the below table. The volatility assumptions were based on the historical stock volatility of the Company.
Volatility
 
31.9%
Risk free rate
 
0.82% - 1.90%
Expected term of options in years
 
1.0 - 5.0
Expected dividend yield
 
0%

Other information pertaining to share-based activity during the three and nine months ended September 30, 2017 and 2016 is as follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Share-based compensation expense from continuing operations
$
9.2

 
$
6.1

 
$
34.5

 
$
21.2

Fair value of shares vested
2.2

 
1.1

 
32.4

 
19.4

Cash received from option exercises
0.3

 

 
4.0

 
0.5

Tax expense (benefit) from exercises of share based awards
2.2

 
(0.2
)
 
0.1

 
(3.9
)
 
As of September 30, 2017, the Company had total unrecognized compensation cost of approximately $47.7 million related to non-vested awards, which the Company expects to recognize through 2020 and over a weighted average period of 0.9 years. For the nine months ended September 30, 2017 and 2016, there were 490,072 and no options that were anti-dilutive, respectively.

d. Earnings per Share
 
Basic net earnings (loss) attributable to Envision Healthcare Corporation common stockholders, per common share, excludes dilution and is computed by dividing net earnings (loss) attributable to Envision Healthcare Corporation common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) attributable to Envision Healthcare Corporation common stockholders, per common share is computed by dividing net earnings (loss) attributable to Envision Healthcare Corporation common stockholders by the weighted-average number of common shares outstanding during the period plus any potential dilutive common share equivalents, including shares issuable (i) upon the vesting of restricted stock awards, restricted stock units and performance stock units as determined under the treasury stock method and (ii) prior to July 3, 2017, the mandatory conversion date, upon conversion of the Company Preferred Stock as determined under the if-converted method. For purposes of calculating diluted earnings (loss) per share, preferred stock dividends have been subtracted from both net earnings (loss) from continuing operations attributable to Envision Healthcare Corporation and net earnings (loss) attributable to Envision Healthcare Corporation common stockholders in periods in which utilizing the if-converted method would be anti-dilutive.


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