Citigroup Inc.

Information with respect to stock option activity under Citigroup stock option programs for the years ended December 31, 2010, 2009 and 2008 is as follows:OptionsWeightedaverageexerciseprice2010 2009 2008Intrinsicvalueper shareOptionsWeightedaverageexercisepriceIntrinsicvalueper shareOptionsWeightedaverageexercisepriceIntrinsicvalueper shareOutstanding, beginning of period 404,044,806 $12.75 $ — 143,860,657 $41.84 $— 172,767,122 $43.08 $—Granted—original 44,500,171 4.78 — 321,244,728 4.27 — 18,140,448 24.70 —Granted—reload — — — — — — 15,984 28.05 —Forfeited or exchanged (43,680,864) 11.51 — (39,285,305) 36.98 — (24,080,659) 42.19 —Expired (29,358,634) 45.87 — (21,775,274) 36.21 — (20,441,584) 38.88 —Exercised (645,381) 4.08 0.38 — — — (2,540,654) 22.36 —Outstanding, end of period 374,860,098 $ 9.37 $ — 404,044,806 $12.75 $— 143,860,657 $41.84 $—Exercisable, end of period 151,897,095 78,939,093 123,654,795The following table summarizes the information about stock options outstanding under Citigroup stock option programs at December 31, 2010:Range of exercise pricesNumberoutstandingWeighted-averagecontractual liferemainingOptions outstandingWeighted-averageexercise priceNumberexercisableOptions exercisableWeighted-averageexercise price$2.97–$9.99 318,677,392 4.9 years $ 4.17 105,316,879 $ 4.18$10.00–$19.99 5,465,017 7.8 years 14.77 1,414,660 14.54$20.00–$29.99 9,766,158 3.5 years 24.51 5,423,229 24.64$30.00–$39.99 4,636,301 4.0 years 34.44 3,636,302 34.68$40.00–$49.99 30,889,716 0.6 years 46.10 30,889,233 46.10$50.00–$56.41 5,425,514 1.3 years 52.14 5,216,792 52.06374,860,098 4.5 years $ 9.37 151,897,095 $15.91As of December 31, 2010, there was $252.8 million of total unrecognizedcompensation cost related to stock options; this cost is expected to berecognized over a weighted-average period of 1.3 years.Fair Value AssumptionsReload options are treated as separate grants from the related original grants.Pursuant to the terms of currently outstanding reloadable options, uponexercise of an option, if employees use previously owned shares to pay theexercise price and surrender shares otherwise to be received for related taxwithholding, they will receive a reload option covering the same numberof shares used for such purposes, but only if the market price on the date ofexercise is at least 20% greater than the option exercise price. Reload optionsvest after six months and carry the same expiration date as the option thatgave rise to the reload grant. The exercise price of a reload grant is the fairmarketvalue of Citigroup common stock on the date the underlying optionis exercised. Reload options are intended to encourage employees to exerciseoptions at an earlier date and to retain the shares acquired. The result of thisprogram is that employees generally will exercise options as soon as they areable and, therefore, these options have shorter expected lives. Shorter optionlives result in lower valuations.However, such values are expensed more quickly due to the shortervesting period of reload options. In addition, since reload options are treatedas separate grants, the existence of the reload feature results in a greaternumber of options being valued. Shares received through option exercisesunder the reload program, as well as certain other options, are subject torestrictions on sale.Additional valuation and related assumption information for Citigroupoption programs is presented below. Citigroup uses a lattice-type model tovalue stock options.For options granted during 2010 2009 2008Weighted-average per-share fairvalue, at December 31 $ 1.66 $ 1.38 $ 3.62Weighted-average expected lifeOriginal grants 6.06 years 5.87 years 5.00 yearsReload grants N/A N/A 1.04 yearsValuation assumptionsExpected volatility 36.42% 35.89% 25.11%Risk-free interest rate 2.88% 2.79% 2.76%Expected dividend yield 0.00% 0.02% 4.53%Expected annual forfeituresOriginal and reload grants 9.62% 7.60% 7.00%N/A Not applicable189