SHARE-BASED COMPENSATION (Tables)

Weighted Average Assumptions Used in Estimating Value of Stock Options Granted



	2016 GRANTS			2015 GRANTS			2014 GRANTS
Expected volatility	25.43		%	25.92		%	31.71		%
Expected dividends	5.37		%	3.28		%	2.92		%
Expected term (in years)	4.95			4.77			4.97
Risk-free rate	1.28		%	1.54		%	1.57		%
Weighted average grant-date fair value	$	2.73		$	5.85		$	6.62

Activity

The following table shows our option unit activity for 2016.



	OPTIONS (IN THOUSANDS)	WEIGHTED AVERAGE EXERCISE PRICE		WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS)	AGGREGATE INTRINSIC VALUE (IN MILLIONS)
Outstanding at December 31, 2015	12,763	$	25.88
Granted⁽¹⁾	6,122	$	23.47
Exercised	(2,570)	$	25.01
Forfeited or expired	(1,603)	$	25.98
Outstanding at December 31, 2016⁽²⁾	14,712	$	24.96	5.47	$	528
Exercisable at December 31, 2016	9,152	$	23.63	3.65	$	338
(1) Includes 1,953 thousand stock option replacement awards issued as a result of the merger with Plum Creek. (2) As of December 31, 2016, there were approximately 1,624 thousand stock options that had met the requisite service period and will be released as identified in the grant terms.

Activity

The following table shows our restricted stock unit activity for 2016.



	STOCK UNITS (IN THOUSANDS)	WEIGHTED AVERAGE GRANT-DATE FAIR VALUE
Nonvested at December 31, 2015	1,104	$	31.37
Granted⁽¹⁾	1,925	$	30.25
Vested	(1,202)	$	32.94
Forfeited	(244)	$	27.04
Nonvested at December 31, 2016⁽²⁾	1,583	$	26.49
(1) Includes 1,248 thousand restricted stock unit replacement awards issued as a result of the merger with Plum Creek. (2) As of December 31, 2016, there were approximately 385 thousand restricted stock units that had met the requisite service period and will be released as identified in the grant terms.

Weighted Average Assumptions Used in Estimating the Value of Performance Share Units



	2016 GRANTS		2015 GRANTS			2014 GRANTS
Performance period	1/1/2016 – 12/31/2018		1/1/2015 – 12/31/2017			1/1/2014 – 12/31/2015
Expected dividends	3.92% - 5.37%		3.26		%	2.91		%
Risk-free rate	0.45% - 0.97%		0.05% - 1.07%			0.03% - 0.79%
Volatility	21.87% - 28.09%		16.33% - 20.89%			20.74% - 23.53%
Weighted average grant-date fair value	$	22.58	$	34.75		$	30.62

Activity

The following table shows our performance share unit activity for 2016.



	GRANTS (IN THOUSANDS)		WEIGHTED AVERAGE GRANT-DATE FAIR VALUE
Nonvested at December 31, 2015	680		$	31.42
Granted at target	493		$	22.58
Vested	(261	)	$	21.26
Forfeited	(151	)	$	25.72
Nonvested at December 31, 2016⁽¹⁾	761		$	25.23
(1) As of December 31, 2016, there were approximately 89 thousand performance share units that had met the requisite service period and will be released as identified in the grant terms.

Weighted Average Assumptions Used to Re-measure Value of Stock Appreciation Rights at Year-End

Activity

The following table shows our stock appreciation rights activity for 2016.



	RIGHTS (IN THOUSANDS)		WEIGHTED AVERAGE EXERCISE PRICE		AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS)	AGGREGATE INTRINSIC VALUE (IN MILLIONS)
Outstanding at December 31, 2015	382		$	24.25
Granted	107		$	23.09
Exercised	(66	)	$	23.42
Forfeited or expired	(37	)	$	26.90
Outstanding at December 31, 2016	386		$	23.82	5.24	$	3
Exercisable at December 31, 2016	233		$	21.85	3.03	$	2