Avis 2010 Annual Report Download - page 101

Table of Contents
these assumptions, the fair value of the Company’s time-vesting stock options issued in first quarter 2010 was estimated to be $6.16, the fair
value of each of the Company’s time-vesting, performance-vesting and market-vesting stock options issued in 2009 was estimated to be
approximately $0.64, $0.59 and $0.45, respectively.
The weighted average fair value of stock options granted during the periods and the assumptions used to estimate those values using the
Black-Scholes simulation option pricing in 2010 and the Black-Scholes and Monte Carlo simulation option pricing in 2009, as applicable,
were as follows:
The annual activity of the Company’s common stock option plans consisted of (in thousands of shares):
The table below summarizes information regarding the Company’s outstanding stock options as of December 31, 2010 (in thousands of
shares):
F
-
37
2010
2009
Expected volatility of stock price
54%
130%
Risk
-
free interest rate
2.82%
1.22%
-
1.46%
Expected life of options
6 years
3
-
4 years
Dividend yield
0.0%
0.0%
2010
2009
2008
Number
of
Options
Weighted
Average
Exercise
Price
Number
of
Options
Weighted
Average
Exercise
Price
Number
of
Options
Weighted
Average
Exercise
Price
Balance at beginning of year
7,196
$
11.30
5,003
$
24.90
5,963
$
26.16
Granted at fair market value
160
11.53
4,012
0.79
-
-
Exercised
(982
)
8.45
-
-
(5
)
10.68
Canceled/forfeited/expired
(1,348
)
28.63
(1,819
)
25.51
(955
)
32.89
Balance at end of year
5,026
7.22
7,196
11.30
5,003
24.90
Stock options exercised during 2010 had an intrinsic value of $5 million and the intrinsic value of those exercised in 2008 was
insignificant.
As of December 31, 2010, the Company
’
s outstanding stock options had an aggregate intrinsic value of $54 million; there were
3.8 million “in-the-money”
stock options; and aggregate unrecognized compensation expense related to unvested stock options was $1
million. Approximately 1.9 million stock options are exercisable as of December 31, 2010 and approximately 3.0 million stock options
are eligible to vest in 2011.
Outstanding Options
Range of
Exercise Prices
Number
of
Options
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Less than $10.00
3,590
8.1
$
0.79
$10.01 to $15.00
231
6.3
12.15
$15.01 to $20.00
217
1.4
18.88
$20.01 to $25.00
63
0.2
20.59
$25.01 to $30.00
915
1.0
27.23
$30.01 and above
10
3.8
31.98
5,026
6.3
7.22
(a)
(b)
(a)
(b)