Why are these Track Changes options greyed out in Word 2016?

I'm looking for confirmation on why some Track Changes Options appear greyed out in Word 2016 (64 bit).  If you go to the Review Ribbon and choose the Track Changes dialog expander button (little square at the bottom right side of the Tracking group),  you will see the Track Changes options available.  I have three options that appear checked and greyed out:  Highlight Updates, Other Authors, and Pictures by Comments.  Here is a screenshot:

Track Changes Options Dialog Box
  1. Am I correct that Highlight Updates and Other Authors options are only available when using Collaboration/Co-Authoring...so your Track Changes document is saved to a Shared location?
  2. Am I correct that Pictures by Comments is tied to Outlook's People settings to "Show User Photographs when Available" ?

Thanks for your help folks!
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Stacy BrownSenior Applications AdministratorAsked:
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MurpheyConnect With a Mentor Application ConsultantCommented:
Answer on 1:
If you save the document so e.g. Sharepoint the options H.U  and O.A wil become available,
so I guess tour assumption is partially right

Answer on 2:
I assume you are right about this, I have a picture but not allowed to remove is, so I can't test that for you
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Stacy BrownSenior Applications AdministratorAuthor Commented:
Thanks for the confirmation!  I was able to confirm the second (pictures in comments) as well.  It does seem to be tied to the Outlook People setting
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