NOTE 7 BUSINESSES HELD FOR SALE, DIVESTITURES AND IMPAIRMENTS DISCONTINUED OPERATIONS: 2006: During the fourth quarter of 2006, the Company entered into an agreement to sell its Beverage Packaging business to Carter Holt Harvey Limited for approximately $500 million, subject to certain adjustments.
The sale of the North American Beverage Packaging operations subsequently closed on January 31, 2007, with the sale of the remaining non-U.
S.  operations expected to close later in the 2007 first quarter.
Also during the fourth quarter, the Company entered into separate agreements for the sale of 13 lumber mills for approximately $325 million, expected to close in the first quarter of 2007, and five wood products plants for approximately $237 million, expected to close in the first half of 2007, both subject to various adjustments at closing.
Based on the fourth-quarter commitments to sell the Beverage Packaging and Wood Products businesses, the Company determined that the accounting requirements under Statement of Financial Accounting Standards No.144, Accounting for the Impairment or Disposal of Long-Lived Assets (SFAS No.144) as discontinued operations were met.
Accordingly, net pre-tax charges of $18 million ($11 million after taxes) for the Beverage Packaging business and $104 million ($69 million after taxes) for the Wood Products business (including $58 million for pension and postretirement benefit termination benefits) were recorded in the fourth quarter as discontinued operations charges to adjust the carrying value of these businesses to their estimated fair value less costs to sell.
Revenues, earnings and earnings per share related to the Beverage Packaging business for 2006, 2005 and 2004 were as follows:
## Table 0 ##
Revenues, earnings and earnings per share related to the Wood Products business for 2006, 2005 and 2004 were as follows:
## Table 1 ##
Unconditional purchase obligations have been entered into in the ordinary course of business, principally for capital projects and the purchase of certain pulpwood, logs, wood chips, raw materials, energy and services, including fiber supply agreements to purchase pulpwood that were entered into concurrently with the 2006 Transformation Plan forestland sales (see Note 7).
At December 31, 2006, total future minimum commitments under existing non-cancelable leases and purchase obligations were as follows:
## Table 2 ##
(a) Included in these amounts are $76 million of lease obligations related to discontinued operations and businesses held for sale that are due as follows: 2007 – $23 million; 2008 – $19 million; 2009 – $15 million; 2010 – $7 million; 2011 – $5 million; and thereafter – $7 million.
(b) Included in these amounts are $1.3 billion of purchase obligations related to discontinued operations and businesses held for sale that are due as follows: 2007 – $335 million; 2008 – $199 million; 2009 – $157 million; 2010 – $143 million; 2011 – $141 million; and thereafter – $331 million.
(c) Includes $2.2 billion relating to fiber supply agreements entered into at the time of the Transformation Plan forestland sales.
Rent expense was $217 million, $216 million and $225 million for 2006, 2005 and 2004, respectively.
International Paper entered into an agreement in 2000 to guarantee, for a fee, an unsecured contractual credit agreement between a financial institution and an unrelated third-party customer.
In the fourth quarter of 2006, the customer cancelled the agreement and paid the Company a fee of $11 million, which is included in Cost of products sold in the accompanying consolidated statement of operations.
Accordingly, the Company has no future obligations under this agreement.
In connection with sales of businesses, property, equipment, forestlands and other assets, International Paper commonly makes representations and warranties relating to such businesses or assets, and may agree to indemnify buyers with respect to tax and environmental liabilities, breaches of representations and warranties, and other matters.
Where liabilities for such matters are determined to be probable and subject to reasonable estimation, accrued liabilities are recorded at the time of sale as a cost of the transaction.
Under the terms of the sale agreement for the Beverage Packaging business, the purchase price received by the Company is subject to a post-closing adjustment if adjusted annualized earnings of the Beverage Packaging business for the first six months of 2007 are less than a targeted amount.
The adjustment, if any, would equal five times the shortfall from the targeted amount.
While management does not currently believe that such adjustment is probable based upon current projections, it is reasonably possible that an adjustment could be required in 2007.  International Paper does not currently believe that it is reasonably possible that future unrecorded liabilities for other such matters, if any, would have a material adverse effect on its consolidated financial statements.
EXTERIOR SIDING AND ROOFING SETTLEMENTS Three nationwide class action lawsuits against the Company and Masonite Corp. , a formerly whollyowned subsidiary of the Company, relating to exterior siding and roofing products manufactured by Masonite were settled in 1998 and 1999.
Masonite was sold to Premdor Inc.  in 2001.
The liability for these settlements, as well as the corresponding insurance recoveries (each as further described below), were retained by the Company.
The first suit, entitled Judy Naef v.  Masonite and International Paper, was filed in December 1994 and settled on January 15, 1998 (the Hardboard Settlement).
The plaintiffs alleged that hardboard siding manufactured by Masonite failed prematurely, allowing moisture intrusion that in turn caused damage to the structure underneath the siding.
The class consisted of all U. S.  property owners having Masonite hardboard siding installed on and incorporated into buildings between January 1, 1980, and January 15, 1998.
For siding that was installed between January 1, 1980, and December 31, 1989, the deadline for filing claims expired January 18, 2005, and for siding installed between January 1, 1990, through January 15, 1998, claims must be made by January 15, 2008.
The second suit, entitled Cosby, et al.
v.  Masonite Corporation, et al.
, was filed in 1997 and settled on January 6, 1999 (the Omniwood Settlement).
The plaintiffs made allegations with regard to Omniwood
NOTE 18 INCENTIVE PLANS International Paper currently has an Incentive Compensation Plan (ICP) which, upon the approval by the Company’s shareholders in May 2009, replaced the Company’s Long-Term Incentive Compensation Plan (LTICP).
The ICP authorizes grants of restricted stock, restricted or deferred stock units, performance awards payable in cash or stock upon the attainment of specified performance goals, dividend equivalents, stock options, stock appreciation rights, other stock- based awards, and cash-based awards at the discretion of the Management Development and Compensation Committee of the Board of Directors (the Committee) that administers the ICP.
Additionally, restricted stock, which may be deferred into RSU’s, may be awarded under a Restricted Stock and Deferred Compensation Plan for Non-Employee Directors.
STOCK OPTION PROGRAM International Paper accounts for stock options in accordance  with  guidance  under ASC  718, “Compensation  –  Stock  Compensation.
” Compensation expense is recorded over the related service period based on the grant-date fair market value.
Since all outstanding options were vested as of July 14, 2005, only replacement option grants are expensed.
During each reporting period, diluted earnings per share is calculated by assuming that “in-the-money” options are exercised and the exercise proceeds are used to repurchase shares in the marketplace.
When options are actually exercised, option proceeds are credited to equity and issued shares are included in the computation of earnings per common share, with no effect on reported earnings.
Equity is also increased by the tax benefit that International Paper will receive in its tax return for income reported by the employees in their individual tax returns.
Under the program, upon exercise of an option, a replacement option may be granted under certain circumstances with an exercise price equal to the market price at the time of exercise and with a term extending to the expiration date of the original option.
The Company has discontinued the issuance of stock options for all eligible U. S.  and non-U.
S.  employees.
In the United States, the stock option program was replaced with a performance-based restricted share program to more closely tie long-term incentive compensation to Company performance on two key performance drivers: return on invested capital (ROIC) and total shareholder return (TSR).
All outstanding options expired on March 15, 2015 The following summarizes the status of the Stock Option Program and the changes during the three years ending December 31, 2015
## Table 3 ##
(a) The table does not include Continuity Award tandem stock options described below.
No fair market value is assigned to these options under ASC 718.
The tandem restricted shares accompanying these options are expensed over their vesting period.
(b) The table includes options outstanding under an acquired company plan under which options may no longer be granted.
PERFORMANCE SHARE PLAN Under the Performance Share Plan (PSP), contingent awards of International Paper common stock are granted by the Committee.
The PSP awards are earned evenly over a three-year period.
PSP awards are earned based on the achievement of defined performance rankings of ROIC and TSR compared to ROIC and TSR peer groups of companies.
Awards are weighted 75% for ROIC and 25% for TSR for all participants except for officers for whom the awards are weighted 50% for ROIC and 50% for TSR.
The ROIC component of the PSP awards is valued at the closing stock price on the day prior to the grant date.
As the ROIC component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest.
The TSR component of the PSP awards is valued using a Monte Carlo simulation as the TSR component contains a market condition.
The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, a risk-free rate, expected dividends, and the expected volatility for the Company and its competitors.
The expected term is estimated based on the vesting period of the awards, the risk-free rate is based on the yield on U. S.  Treasury securities matching the vesting period, and the volatility is based on the Company’s historical volatility over the expected term

<table><tr><td><i>In millions, except per share amounts</i></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td> Revenues</td><td>$816</td><td>$820</td><td>$763</td></tr><tr><td> Earnings from discontinued operation</td><td></td><td></td><td></td></tr><tr><td>Earnings from operation</td><td>$52</td><td>$40</td><td>$51</td></tr><tr><td>Income tax expense</td><td>-16</td><td>-18</td><td>-17</td></tr><tr><td> Earnings from operation, net of taxes</td><td>36</td><td>22</td><td>34</td></tr><tr><td>Loss on sales and impairments</td><td>-121</td><td>–</td><td>–</td></tr><tr><td>Income tax benefit</td><td>31</td><td>–</td><td>–</td></tr><tr><td> Loss on sales and impairments, net of taxes</td><td>-90</td><td>–</td><td>–</td></tr><tr><td> Earnings (loss) from discontinued operation, net of taxes</td><td>$-54</td><td>$22</td><td>$34</td></tr><tr><td> Earnings per common share from discontinued operation - assuming dilution</td><td></td><td></td><td></td></tr><tr><td>Earnings from operation</td><td>$0.07</td><td>$0.04</td><td>$0.07</td></tr><tr><td>Loss on sales and impairments</td><td>-0.18</td><td>–</td><td>–</td></tr><tr><td> Earnings (loss) per common share from discontinued operation, net of taxes and minority interest - assumingdilution</td><td>$-0.11</td><td>$0.04</td><td>$0.07</td></tr></table>
<table><tr><td><i>In millions, except per share amounts</i></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td> Revenues</td><td>$1,017</td><td>$1,135</td><td>$1,522</td></tr><tr><td> Earnings from discontinued operation</td><td></td><td></td><td></td></tr><tr><td>Earnings (loss) from operation</td><td>$-15</td><td>$197</td><td>$258</td></tr><tr><td>Income tax benefit (expense)</td><td>5</td><td>-77</td><td>-100</td></tr><tr><td> Earnings (loss) from operation, net of taxes</td><td>-10</td><td>120</td><td>158</td></tr><tr><td>Loss on sales and impairments</td><td>-269</td><td>–</td><td>–</td></tr><tr><td>Income tax benefit</td><td>35</td><td>–</td><td>–</td></tr><tr><td> Loss on sales and impairments, net of taxes</td><td>-234</td><td>–</td><td>–</td></tr><tr><td> Earnings (loss) from discontinued operation, net of taxes</td><td>$-244</td><td>$120</td><td>$158</td></tr><tr><td> Earnings (loss) per common share from discontinued operation - assuming dilution</td><td></td><td></td><td></td></tr><tr><td>Earnings (loss) from operation</td><td>$-0.02</td><td>$0.24</td><td>$0.32</td></tr><tr><td>Loss on sales and impairments</td><td>-0.47</td><td>–</td><td>–</td></tr><tr><td> Earnings (loss) per common share from discontinued operation, net of taxes and minority interest - assumingdilution</td><td>$-0.49</td><td>$0.24</td><td>$0.32</td></tr></table>
<table><tr><td><i>In millions</i></td><td>2007</td><td>2008</td><td>2009</td><td>2010</td><td>2011</td><td>Thereafter</td></tr><tr><td>Lease obligations (a)</td><td>$144</td><td>$117</td><td>$94</td><td>$74</td><td>$60</td><td>$110</td></tr><tr><td>Purchase obligations (b,c)</td><td>2,329</td><td>462</td><td>362</td><td>352</td><td>323</td><td>1,794</td></tr><tr><td>Total</td><td>$2,473</td><td>$579</td><td>$456</td><td>$426</td><td>$383</td><td>$1,904</td></tr></table>
<table><tr><td></td><td>Options(a,b)</td><td>WeightedAverageExercisePrice</td><td>WeightedAverageRemainingLife(years)</td><td>AggregateIntrinsicValue(thousands)</td></tr><tr><td>Outstanding at December 31, 2012</td><td>9,136,060</td><td>$38.79</td><td>1.15</td><td>$1,077</td></tr><tr><td>Granted</td><td>4,744</td><td>48.11</td><td></td><td></td></tr><tr><td>Exercised</td><td>-7,317,825</td><td>38.57</td><td></td><td></td></tr><tr><td>Expired</td><td>-70,190</td><td>37.15</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2013</td><td>1,752,789</td><td>39.80</td><td>0.67</td><td>16,175</td></tr><tr><td>Granted</td><td>3,247</td><td>49.13</td><td></td><td></td></tr><tr><td>Exercised</td><td>-1,634,858</td><td>39.80</td><td></td><td></td></tr><tr><td>Expired</td><td>-49,286</td><td>41.50</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2014</td><td>71,892</td><td>39.03</td><td>0.18</td><td>1,046</td></tr><tr><td>Granted</td><td>—</td><td>—</td><td></td><td></td></tr><tr><td>Exercised</td><td>-62,477</td><td>39.05</td><td></td><td></td></tr><tr><td>Expired</td><td>-9,415</td><td>38.92</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2015</td><td>—</td><td>$—</td><td>0.00</td><td>$—</td></tr></table>

Question: In what year is Weighted Average Exercise Price for Outstanding on December 31 greater than 39.50?
Answer: 2013