Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION PLAN (Tables)

STOCK-BASED COMPENSATION PLAN (Tables)

12 Months Ended

Dec. 31, 2014

Compensation cost from continuing operations under the Stock Incentive Plan

The compensation cost from continuing operations under the Stock Incentive Plan for our Company and Huntsman International were as follows (dollars in millions):

	Year ended December 31,
	2014		2013		2012
Huntsman Corporation compensation cost	$	28	$	29	$	27
Huntsman International compensation cost		27		28		26

Assumptions used to calculate fair value of each stock option award estimated on the date of grant using the Black-Scholes valuation model

	Year ended December 31,
	2014			2013			2012
Dividend yield		2.4	%		2.8	%		3.0	%
Expected volatility		60.3	%		62.5	%		65.3	%
Risk-free interest rate		1.7	%		1.0	%		1.3	%
Expected life of stock options granted during the period		5.7 years			5.6 years			6.6 years

Summary of stock option activity under the Stock Incentive Plan

Option Awards	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	(in thousands)					(years)		(in millions)
Outstanding at January 1, 2014		10,019		$	15.39
Granted		1,116			21.22
Exercised		(2,300	)		20.25
Forfeited		(54	)		17.51

Outstanding at December 31, 2014		8,781			14.84		5.2	$	70


Exercisable at December 31, 2014		6,451			13.47		4.1		60

Summary of status of nonvested shares under the Stock Incentive Plan

	Equity Awards					Liability Awards
	Shares			Weighted Average Grant-Date Fair Value		Shares			Weighted Average Grant-Date Fair Value
	(in thousands)					(in thousands)
Nonvested at January 1, 2014		1,830		$	15.31		574		$	16.03
Granted		754			21.22		237			21.22
Vested		(735)	(1)		16.16		(284	)		15.98
Forfeited		(28	)		18.29		(35	)		17.00

Nonvested at December 31, 2014		1,821			17.37		492			18.50

(1)

As of December 31, 2014, a total of 388,299 restricted stock units were vested but not yet issued, of which 44,534 vested during 2014. These shares have not been reflected as vested shares in this table because, in accordance with the restricted stock unit agreements, shares of common stock are not issued for vested restricted stock units until termination of employment.