notes to consolidated financial statements

Note 10 (3 of 3)

Stock-Based Compensation

Stock Options

The Plan provides for grants of stock options to participants at an option price per share of no less than 100% of the fair market value of Verizon common stock on the date of grant. Each grant has a 10-year life, vesting equally over a three-year period, starting at the date of the grant. We have not granted new stock options since 2004.

The following table summarizes Verizon’s stock option activity:

(shares in thousands)

Stock
Options

 

Weighted-Average
Exercise Price

 

Outstanding, January 1, 2009

140,158

 

 

$

45.86

 

Exercised

(2

)

 

 

25.32

 

Cancelled/Forfeited

(32,391

)

 

 

50.31

 

Outstanding, December 31, 2009

107,765

 

 

 

44.52

 

Exercised

(372

)

 

 

34.51

 

Cancelled/Forfeited

(50,549

)

 

 

44.90

 

Outstanding, December 31, 2010

56,844

 

 

 

44.25

 

Exercised

(7,104

)

 

 

35.00

 

Cancelled/Forfeited

(21,921

)

 

 

51.06

 

Outstanding, December 31, 2011

27,819

 

 

 

41.24

 

All stock options outstanding at December 31, 2011, 2010 and 2009 were exercisable.

The following table summarizes information about Verizon’s stock options outstanding as of December 31, 2011:

Range of
Exercise Prices

Stock Options
(in thousands

)

Weighted-Average
Remaining Life
(years

)

Weighted-Average
Exercise Price

 

$

20.00

29.99

 

 

24

 

0.7

 

 

$

27.66

 

 

30.00

39.99

 

 

10,791

 

1.6

 

 

 

35.02

 

 

40.00

49.99

 

 

17,004

 

0.1

 

 

 

45.21

 

 

Total

 

 

 

 

27,819

 

0.7

 

 

 

41.24

 

The total intrinsic value was approximately $0.1 billion for stock options outstanding as of December 31, 2011. The total intrinsic value of stock options exercised and the associated tax benefits were not significant in 2011, 2010 and 2009. The amount of cash received from the exercise of stock options was $0.2 billion in 2011 and not significant in 2010 and 2009. There was no stock option expense for 2011, 2010 and 2009.