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Share-Based Compensation Plans (Tables)
 3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Summary of restricted stock activity
The following is a summary of restricted stock unit activity for the three months ended March 31, 2020. 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, 2020512  $68.95  
Granted219  80.66  
Vested(200) 64.84  
Forfeited(9) 71.20  
Outstanding at March 31, 2020522  $75.34  
Summary of performance based share grants
The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the three months ended March 31, 2020. 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, 2020225  $64.51  
Granted67  80.66  
Vested(89) 49.15  
Forfeited(1) 74.17  
Outstanding at March 31, 2020202  $76.60  
TSR Performance Share Unit Grants
The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the three months ended March 31, 2020:
Share units
(in thousands)
Weighted
Average
Grant Date
Fair Value /Share
Outstanding at January 1, 2020225  $75.80  
Granted67  105.66  
Adjustment for Market Condition Achieved (a)35  49.15  
Vested(124) 49.15  
Forfeited(1) 74.17  
Outstanding at March 31, 2020202  $97.97  
Summary of the changes in outstanding stock options
The following is a summary of the changes in outstanding stock options for the three months ended March 31, 2020:
Share units
(in thousands)
Weighted
Average
Exercise
Price / Share
Weighted  Average
Remaining
Contractual
Term (Years)
Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 20202,040  $48.56  6.3
Granted334  80.66  
Exercised(130) 41.18  
Forfeited and expired(5) 74.37  
Outstanding at March 31, 20202,239  $53.72  6.7$37  
Options exercisable at March 31, 20201,615  $44.45  5.7$36  
Vested and expected to vest as of March 31, 20202,146  $52.67  6.5$36  
Stock option valuation assumptions The following are weighted-average assumptions for 2020 grants:
Volatility22.90  %  
Risk-free interest rate1.15  %  
Dividend yield1.29  %  
Expected term (in years)5.8
Weighted-average fair value / share$16.03  
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 2020 grants:
Volatility22.6  %  
Risk-free interest rate1.08  %