iPhone version - 5.1 (9B176)
Below is the series of events during Local Notification where in which didFinishLaunchingWithOptions method is not invoked.
- App is running in background.
 - Got local notification - simple notification no dialog.
 - Click on the app icon which shows the badge number.
 
Expected as per Apple documentation:
As a result of the presented notification, the user taps the action button of the alert or taps (or clicks) the application icon. If the action button is tapped (on a device running iOS), the system launches the application and the application calls its delegate’s
didFinishLaunchingWithOptionsmethod (if implemented); it passes in the notification payload (for remote notifications) or the local-notification object (for local notifications).If the application icon is tapped on a device running iOS, the application calls the same method, but furnishes no information about the notification
Actual :
didFinishLaunchingWithOptions NOT invoked. But applicationWillEnterForeground and applicationDidBecomeActive were invoked.