The following is a summary of the assumptions related to the grants issued during 2011, 2010 and 2009: 2011 2010 2009 Expected volatility (weighted-average) 56% 58% 49.7% Expected dividends 0.0% — 1.17% — — Expected term (in years) 6.0 4.5 4.5 — 5.6 Risk-free rate 2.70% — 2.86% 2.26% 3.25% Value of SARs granted $6.72 — $8.12 $3.90 $0.61 — $0.68 P O L Y O N E C O R P O R A T I O N 54 A summary of SAR activity for 2011 is presented below: (Shares in thousands, dollars in millions, except per share data) Stock Appreciation Rights Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of January 1, 2011 4,193 $ 5.84 4.23 years $28.3 Granted 539 $14.81 Exercised (958) $ 5.62 Forfeited or expired (40) $ 9.34 Outstanding as of December 31, 2011 3,734 $ 7.15 4.24 years $18.1 Vested and exercisable as of December 31, 2011 2,258 $ 6.30 2.91 years $11.9 The weighted-average grant date fair value of SARs granted during 2011, 2010 and 2009 was $8.12, $3.90, and $0.65, respectively. P O L Y O N E C O R P O R A T I O N 56 On December 21, 2011, the Company completed the acquisition of all of the outstanding equity interests of ColorMatrix for $486.1 million, net of cash acquired, on a debt-free basis.