Huntsman Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION PLANS (Tables)

STOCK-BASED COMPENSATION PLANS (Tables)

9 Months Ended

Sep. 30, 2016

Compensation cost from continuing operations under the Stock Incentive Plan

The compensation cost from continuing operations under the 2016 Stock Incentive Plan and the Prior Plan for our Company and Huntsman International were as follows (dollars in millions):

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Huntsman Corporation compensation cost	$	8	$	4	$	25	$	21
Huntsman International compensation cost		8		4		24		20

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

	Three months ended September 30,		Nine months ended September 30,
	2016	2015	2016	2015
Dividend yield	3.3%	3.3%	5.6%	2.3%
Expected volatility	57.6%	56.7%	57.9%	57.9%
Risk-free interest rate	1.1%	1.7%	1.4%	1.4%
Expected life of stock options granted during the period	5.9 years	5.9 years	5.9 years	5.9 years

Summary of stock option activity under the Stock Incentive Plan and the Prior 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, 2016		9,544		$	15.51
Granted		3,024			9.04
Exercised		(43	)		7.09
Forfeited		(1,110	)		19.61

Outstanding at September 30, 2016		11,415			13.43		5.7	$	51


Exercisable at September 30, 2016		7,505			14.09		3.9		30

Summary of status of nonvested shares

	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, 2016		1,854		$	19.97		475		$	21.37
Granted		1,889			9.28		715			9.09
Vested		(666)	(1)		19.80		(230	)		20.64
Forfeited		(66	)		17.10		(26	)		16.55

Nonvested at September 30, 2016		3,011			13.36		934			12.29


(1)	As of September 30, 2016, a total of 454,900 restricted stock units were vested but not yet issued, of which 60,948 vested during the nine months ended September 30, 2016. 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.