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

Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION PLANS (Tables)

STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2012

STOCK-BASED COMPENSATION PLAN

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,

		2012			2011			2010
Huntsman Corporation compensation cost		$	27		$	24		$	27
Huntsman International compensation cost			26			22			24

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,

		2012			2011			2010
Dividend yield			3.0	%		2.3	%		3.0	%
Expected volatility			65.3	%		65.6	%		69.0	%
Risk-free interest rate			1.3	%		2.8	%		3.1	%
Expected life of stock options granted during the period			6.6 years			6.6 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, 2012			10,345		$	13.83
Granted			1,363			13.41
Exercised			(902	)		3.37
Forfeited			(289	)		19.48

Outstanding at December 31, 2012			10,517			14.52			5.4		$	42

Exercisable at December 31, 2012			8,390			14.56			4.5			39

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, 2012			2,287		$	9.92			1,100		$	9.42
Granted			934			13.41			383			13.41
Vested			(1,402	)(1)		7.09			(760	)		6.53
Forfeited			(30	)		15.27			(85	)		15.16

Nonvested at December 31, 2012			1,789			13.87			638			14.50

(1): As of December 31, 2012, a total of 516,338 restricted stock units were vested, of which 72,161 vested during 2012. Only 176,327 of these shares have 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.