Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of stock option valuation assumptions and weighted-average grant date fair value

The following table presents the weighted-average assumptions, weighted average grant date fair value, and the range of expected stock price volatility:

	Employee Stock Options
	For the Years Ended December 31,
	2020			2019			2018
Expected life (in years)	7.70			7.85			7.64
Volatility	30.89		%	30.00		%	32.37		%
Risk free interest rate	0.70		%	1.90		%	3.10		%
Dividend yield	0.53		%	0.76		%	0.61		%
Weighted-average grant date fair value	$	25.93		$	17.12		$	21.03
Stock price volatility range:
Low	30.00		%	30.00		%	31.72		%
High	39.00		%	38.17		%	36.73		%

Schedule of stock option activity

Stock option activity is as follows:

	Number of shares (in thousands)	Weighted-average exercise price per stock option		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding stock options at December 31, 2019	14,029	$	44.31
Granted	2,419	78.19
Exercised	(4,543)	37.49
Forfeited	(573)	52.98
Expired	(35)	52.68
Outstanding stock options at December 31, 2020	11,297	$	53.84	7.68	$	441
Vested and expected to vest at December 31, 2020	10,669	$	53.05	7.60	$	425
Exercisable at December 31, 2020	3,710	$	41.56	5.75	$	190

Schedule of restricted stock units activity

The following table summarizes our RSU activity with performance-based RSUs, including those with market conditions, presented at 100% of the target level shares that may potentially vest (amounts in thousands, except per share data):

	Number of shares	Weighted- average grant date fair value per RSU
Unvested RSUs at December 31, 2019	7,181	$	54.23
Granted	2,254	201.25
Vested	(1,513)	49.76
Forfeited	(820)	55.39
Unvested RSUs at December 31, 2020	7,102	$	82.50

Schedule of share-based compensation expense

The following table sets forth the total share-based compensation expense included in our consolidated statements of operations (amounts in millions):

	For the Years Ended December 31,
	2020		2019		2018
Cost of revenues—product sales: Software royalties, amortization, and intellectual property licenses	$	14	$	19	$	13
Cost of revenues—in-game, subscription, and other: Game Operations and Distribution Costs	1		1		2
Cost of revenues—in-game, subscription, and other: Software royalties, amortization, and intellectual property licenses	—		1		3
Product development	42		53		61
Sales and marketing	21		10		15
General and administrative	140		82		115
Share-based compensation expense before income taxes	218		166		209
Income tax benefit	(28)		(29)		(46)
Total share-based compensation expense, net of income tax benefit	$	190	$	137	$	163