STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2011

Stock Option Activity

A summary of Valassis’ stock option activity for the year ended December 31, 2011, is as follows:

	Shares			Weighted Average per Share Exercise Price		Remaining Contractual Life (in years)		Aggregate Intrinsic Value ($ in millions)
Outstanding at beginning of year		9,157,633		$	19.96
Granted		539,322		$	23.52
Exercised		(542,047	)	$	12.47
Forfeited/Expired		(1,023,666	)	$	29.93
Outstanding at end of year		8,131,242		$	19.45		5.23	$	33.8
Options exercisable at year end		5,134,247		$	20.70		3.83	$	17.3
Options expected to vest		2,748,974		$	17.42		7.63	$	15.0

Weighted-Average Assumptions Used under Black-Scholes-Pricing Model to Estimate Fair Value of Each Options Granted

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for options granted:

	Year Ended December 31,
	2011			2010			2009
Expected option life		4.4 years			4.9 years			5.8 years
Expected annual voltility		61	%		61	%		59	%
Risk-free interest rate		1.2	%		2.6	%		1.8	%
Dividend yield		0	%		0	%		0	%

Restricted Stock Activity

A summary of restricted stock activity for the year ended December 31, 2011 is as follows:

	Shares			Weighted Average Grant  Date Fair Value
Non-vested at beginning of year		333,222		$	27.98
Granted		313,140		$	24.66
Vested		(95,806	)	$	17.66
Forfeited		(350	)	$	29.36
Non-vested at end of year		550,206		$	27.88