Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of assumptions used to measure fair value

The fair value of the stock options issued was measured using the following assumptions:

	Year ended December 31,
	2022		2021		2020
Risk free interest rate	3.1	%	1.1	%	0.4	%
Expected term (in years)	5.6		5.8		6.1
Expected volatility	75.0	%	43.0	%	42.5	%
Expected dividend yield	0.0	%	0.0	%	0.0	%

The model uses multiple input variables that determined the probability of satisfying the market condition requirements as follows:

	Year ended December 31, 2020
Risk free interest rate	1.7	%
Expected volatility	38.9	%
Expected dividend yield	0.0	%

Schedule of stock option activity

The following table shows stock option activity for the year ended December 31, 2022, 2021, and 2020:

	Time-based		PSP		LTIP		Total	Weighted Average Exercise Price of  Options		Weighted Average FMV of  RSUs		Weighted Average Remaining Term of Options  (Years)	Aggregate Intrinsic Value of Options
	Options	RSUs	Options	RSUs	Options	RSUs
Outstanding at December 31, 2020	20,519	3,548	3,023	907	13,854	12,800	54,651	$	3.57	$	47.01	7.05	$	1,607,562
Granted	1,100	2,466	—	600	—	6,744	10,910	50.60		52.97		—	—
Exercised options / vested RSUs	(6,571)	(1,523)	(667)	—	(2,183)	—	(10,944)	3.33		37.64		—	—
Forfeited	(353)	(296)	(2)	(19)	—	(201)	(871)	4.30		44.20		—	—
Outstanding at December 31, 2021	14,695	4,195	2,354	1,488	11,671	19,343	53,746	$	5.46	49.94		6.34	$	622,108
Granted	400	15,254	—	12,523	—	1,390	29,567	28.24		17.79		—	—
Exercised options / vested RSUs	(2,672)	(2,913)	(76)	(2,671)	(519)	(6,251)	(15,102)	2.68		43.19		—	—
Change in awards due to performance-based multiplier	—	—	—	1,806	—	—	1,806	—		33.69		—	—
Forfeited	(164)	(1,263)	(5)	(27)	—	(618)	(2,077)	4.73		34.94		—	—
Outstanding at December 31, 2022	12,259	15,273	2,273	13,119	11,152	13,864	67,940	$	6.17	$	29.64	5.49	$	192,062

The following table provides additional information for stock option awards outstanding as of December 31, 2022:

	Awards Outstanding	Weighted Average Remaining Term of Options (Years)	Aggregate Intrinsic Value		Weighted Average Exercise Price of Options
Stock options exercisable	24,300	5.4	$	188,009	$	5.23
Stock options remaining to vest	1,384	7.7	$	4,053	$	22.55

Summary of stock compensation expense

The following table shows stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020:

	Year ended						Year ended						Year ended
	December 31, 2022						December 31, 2021						December 31, 2020
	Options		RSUs		Total		Options		RSUs		Total		Options		RSUs		Total
Time Based (1)	$	15,222	$	103,478	$	118,700	$	14,654	$	61,085	$	75,739	$	8,176	$	21,286	$	29,462
PSP (2)	—		90,180		90,180		—		82,089		82,089		1,633		21,275		22,908
LTIP (2)	—		369,919		369,919		—		525,465		525,465		9,552		255,116		264,668
Class B Shares (3)	—		—		—		—		—		—		8,000		—		8,000
Total	$	15,222	$	563,577	$	578,799	$	14,654	$	668,639	$	683,293	$	27,361	$	297,677	$	325,038

(1) Time-based awards vest and are expensed over a defined service period.

(2) PSP and LTIP awards vest based on defined performance criteria and are expensed based on the probability of achieving such criteria.

(3) Related to the DEAC Business Combination; shares of Class B common stock have no economic rights.