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SHARE-BASED AND OTHER COMPENSATION PLANS (Tables)
 12 Months Ended
Dec. 31, 2016
SHARE-BASED AND OTHER COMPENSATION PLANS  
Schedule of share-based compensation expense recognized in Consolidated Statements of Income
Years Ended December 31,
(in millions)201620152014
Share-based compensation expense - pre-tax*$237$365$349
Share-based compensation expense - after tax154237227

* We recognized $105 million, $147 million and $120 million for immediately vested stock-settled awards issued to retirement eligible employees in 2016, 2015 and 2014, respectively.

Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR
201620152014
Expected dividend yield(a)2.17%1.78%1.13%
Expected volatility(b)24.55%22.71%23.66%
Risk-free interest rate(c)1.30%1.01%0.76%

(a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date.

(b) The expected volatility is based on the implied volatilities of actively traded stock options from the valuation date through the end of the PSU performance period as estimated by Bloomberg Professional service.

(c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date
Summary of outstanding share-settled LTI awards
Weighted Average
As of or for the YearNumber of PSUs(b) Grant-Date Fair Value
Ended December 31, 20162016 LTI2015 LTI2014 LTI2013 LTI(c)2016 LTI2015 LTI2014 LTI2013 LTI
Unvested, beginning of year-3,046,9582,559,3592,250,109$-$55.08$48.82$37.07
Granted5,092,4524,704-3,471,85050.7764.23-36.55
Vested(2,315,667)(681,396)(652,198)(3,974,941)50.4254.0348.6536.20
Forfeited(188,187)(193,711)(174,545)(165,114)50.2654.1448.8137.71
Unvested, end of year(d)2,588,5982,176,5551,732,6161,581,904$51.12$55.52$48.88$38.03

(a) Excludes DSUs, which are discussed under Non-Employee Plan.

(b) Except for the 2013 LTI award, represents target number of PSUs granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined in the quarter after the applicable performance period ends.

(c) The performance period for the 2013 LTI awards ended December 31, 2015. The number of earned PSUs was based on the results of the 2013 performance goals adjudicated in the first quarter of 2016 by the CMRC. This resulted in additional units being granted, but no additional expense was recognized for these units.

(d) At December 31, 2016, the total unrecognized compensation cost (net of expected forfeitures) for the unvested PSUs was $163 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 1.26 years and 4 years.