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Share-Based Compensation Plans (Tables)
 6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
Summary of restricted stock activity The following is a summary of restricted stock unit activity for the six months ended June 30, 2021. The fair value of the restricted share unit awards is determined using the closing price of our common stock on date of grant:
Share units
(in thousands)
Weighted
Average
Grant Date
Fair Value /Share
Outstanding at January 1, 2021537 $74.62 
Granted213 103.36 
Vested(233)74.47 
Forfeited(15)85.91 
Outstanding at June 30, 2021502 $86.47 
Summary of performance based share grants
The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the six months ended June 30, 2021. The fair value of the ROIC performance share units is equal to the closing share price on the date of the grant:
Share units
 (in thousands)
Weighted
Average
Grant Date
Fair Value /Share
Outstanding at January 1, 2021182 $76.12 
Granted60 102.30 
Forfeited (a)(65)76.04 
Outstanding at June 30, 2021177 $84.66 
(a) Includes ROIC performance share unit awards forfeited during the period as a result of the final performance condition not being achieved on vest date.
TSR Performance Share Unit Grants
The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the six months ended June 30, 2021:
Share units
(in thousands)
Weighted
Average
Grant Date
Fair Value /Share
Outstanding at January 1, 2021182 $96.98 
Granted60 117.56 
Adjustment for Market Condition Achieved (a)35 98.79 
Vested(93)98.79 
Forfeited(7)102.66 
Outstanding at June 30, 2021177 $102.86 
Summary of the changes in outstanding stock options The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2021:
Share units
(in thousands)
Weighted
Average
Exercise
Price / Share
Weighted  Average
Remaining
Contractual
Term (Years)
Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 20211,961 $56.66 6.4
Granted259 102.31 
Exercised(135)58.39 
Forfeited and expired(22)83.88 
Outstanding at June 30, 20212,063 $61.93 6.3$122 
Options exercisable at June 30, 20211,409 $51.45 5.0$98 
Vested and expected to vest as of June 30, 20211,987 $60.98 6.2$119 
Stock option valuation assumptions The following are weighted-average assumptions for 2021 grants:
Volatility26.30 %
Risk-free interest rate0.86 %
Dividend yield1.10 %
Expected term (in years)5.7
Weighted-average fair value / share$23.20 
Performance-based shares valuation assumptions
The fair value of TSR performance share units was calculated on the date of grant using a Monte Carlo simulation model utilizing several key assumptions, including expected Company and peer company share price volatility, correlation coefficients between peers, the risk-free rate of return, the expected dividend yield and other award design features. The following are weighted-average assumptions for 2021 grants:
Volatility33.5 %
Risk-free interest rate0.24 %