XML 46 R35.htm IDEA: XBRL DOCUMENT v3.21.2
Share-Based Compensation Plans (Tables)
 9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Summary of restricted stock activity The following is a summary of restricted stock unit activity for the nine months ended September 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 
Granted230 105.77 
Vested(249)74.59 
Forfeited(25)87.02 
Outstanding at September 30, 2021493 $88.42 
Summary of performance based share grants
The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the nine months ended September 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 
Granted61 102.69 
Forfeited (a)(66)76.13 
Outstanding at September 30, 2021177 $84.85 
(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 nine months ended September 30, 2021:
Share units
(in thousands)
Weighted
Average
Grant Date
Fair Value / Share
Outstanding at January 1, 2021182 $96.98 
Granted61 117.56 
Adjustment for Market Condition Achieved (a)35 98.79 
Vested(93)98.79 
Forfeited(8)103.10 
Outstanding at September 30, 2021177 $102.98 
Summary of the changes in outstanding stock options The following is a summary of the changes in outstanding stock options for the nine months ended September 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
Granted262 102.61 
Exercised(264)54.82 
Forfeited and expired(24)84.39 
Outstanding at September 30, 20211,935 $62.63 6.2$113 
Options exercisable at September 30, 20211,280 $51.49 4.8$89 
Vested and expected to vest as of September 30, 20211,872 $61.89 6.1$111 
Stock option valuation assumptions The following are weighted-average assumptions for 2021 grants:
Volatility26.29 %
Risk-free interest rate0.86 %
Dividend yield1.10 %
Expected term (in years)5.7
Weighted-average fair value / share$23.26 
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 %