Citibank 2012 Annual Report Download - page 191

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Information with respect to stock option activity under Citigroup stock option programs for the years ended December 31, 2012, 2011 and 2010 is as follows:
2012 2011 2010
Options
Weighted-
average
exercise
price
Intrinsic
value
per share Options
Weighted-
average
exercise
price
Intrinsic
value
per share Options
Weighted-
average
exercise
price
Intrinsic
value
per share
Outstanding, beginning of period 37,596,029 $ 69.60 $— 37,486,011 $ 93.70 $ — 40,404,481 $127.50 $ —
Granted—original — — — 3,425,000 48.86 — 4,450,017 47.80 —
Forfeited or exchanged (858,906) 83.84 — (1,539,227) 176.41 — (4,368,086) 115.10 —
Expired (1,716,726) 438.14 — (1,610,450) 487.24 — (2,935,863) 458.70 —
Exercised — — — (165,305) 40.80 6.72 (64,538) 40.80 3.80
Outstanding, end of period 35,020,397 $ 51.20 $— 37,596,029 $ 69.60 $ — 37,486,011 $ 93.70 $ —
Exercisable, end of period 32,973,444 23,237,069 15,189,710
The following table summarizes the information about stock options outstanding under Citigroup stock option programs at December 31, 2012:
Options outstanding Options exercisable
Range of exercise prices
Number
outstanding
Weighted-average
contractual life
remaining
Weighted-average
exercise price
Number
exercisable
Weighted-average
exercise price
$29.70–$49.99 (1) 33,392,541 3.1 years $ 42.40 31,431,666 $ 42.02
$50.00–$99.99 69,956 8.1 years 56.76 69,132 56.64
$100.00–$199.99 516,577 5.9 years 147.33 431,323 148.33
$200.00–$299.99 754,375 1.7 years 243.85 754,375 243.85
$300.00–$399.99 206,627 4.9 years 335.97 206,627 335.97
$400.00–$557.00 80,321 0.1 years 543.69 80,321 543.69
Total at December 31, 2012 35,020,397 3.1 years $ 51.20 32,973,444 $ 51.13
(1) A significant portion of the outstanding options are in the $40 to $45 range of exercise prices.
As of December 31, 2012, there was $8.7 million of total unrecognized
compensation cost related to stock options; this cost is expected to be
recognized over a weighted-average period of 0.3 years. Valuation and related
assumption information for Citigroup option programs is presented below.
Citigroup uses a lattice-type model to value stock options.
For options granted during 2012 2011 2010
Weighted-average per-share fair value,
at December 31 N/A $ 13.90 $ 16.60
Weighted-average expected life
Original grants N/A 4.95 yrs. 6.06 yrs.
Valuation assumptions
Expected volatility N/A 35.64% 36.42%
Risk-free interest rate N/A 2.33% 2.88%
Expected dividend yield N/A 0.00% 0.00%
Expected annual forfeitures
Original and reload grants N/A 9.62% 9.62%
N/A Not applicable