ANSYS (ANSS) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	ANSS
Entity Registrant Name	ANSYS INC
Entity Central Index Key	1,013,462
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		88,040,822

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 863,435	$ 784,168
Short-term investments	442	446
Accounts receivable, less allowance for doubtful accounts of $5,200 and $5,200, respectively	82,498	91,579
Other receivables and current assets	172,304	200,233
Total current assets	1,118,679	1,076,426
Property and equipment, net	60,151	61,924
Goodwill	1,334,129	1,332,348
Other intangible assets, net	209,677	220,553
Other long-term assets	5,966	5,757
Deferred income taxes	30,226	32,896
Total assets	2,758,828	2,729,904
Current liabilities:
Accounts payable	4,302	4,865
Accrued bonuses and commissions	17,640	46,141
Accrued income taxes	16,790	4,695
Other accrued expenses and liabilities	60,952	63,801
Deferred revenue	375,140	364,644
Total current liabilities	474,824	484,146
Long-term liabilities:
Deferred income taxes	6,571	2,091
Other long-term liabilities	43,530	49,240
Total long-term liabilities	$ 50,101	$ 51,331
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; zero shares issued or outstanding	$ 0	$ 0
Common stock, $.01 par value; 300,000,000 shares authorized; 93,236,023 shares issued	932	932
Additional paid-in capital	882,438	894,469
Retained earnings	1,848,497	1,792,029
Treasury stock, at cost: 5,262,278 and 5,096,505 shares, respectively	(456,871)	(440,839)
Accumulated other comprehensive loss	(41,093)	(52,164)
Total stockholders' equity	2,233,903	2,194,427
Total liabilities and stockholders' equity	$ 2,758,828	$ 2,729,904

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 5,200	$ 5,200
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	93,236,023	93,236,023
Treasury stock, shares	5,262,278	5,096,505

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Software licenses	$ 126,051	$ 124,969
Maintenance and service	99,855	92,812
Total revenue	225,906	217,781
Cost of sales:
Software licenses	6,738	7,209
Amortization	9,511	9,357
Maintenance and service	19,036	19,322
Total cost of sales	35,285	35,888
Gross profit	190,621	181,893
Operating expenses:
Selling, general and administrative	57,769	56,749
Research and development	44,672	40,009
Amortization	3,158	5,077
Total operating expenses	105,599	101,835
Operating income	85,022	80,058
Interest expense	(86)	(154)
Interest income	950	656
Other (expense) income, net	(108)	767
Income before income tax provision	85,778	81,327
Income tax provision	29,310	25,195
Net income	$ 56,468	$ 56,132
Earnings per share - basic:
Basic earnings per share	$ 0.64	$ 0.62
Weighted average shares - basic	88,114	90,059
Earnings per share - diluted:
Diluted earnings per share	$ 0.63	$ 0.61
Weighted average shares - diluted	90,084	92,140

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income	$ 56,468	$ 56,132
Other comprehensive income (loss):
Foreign currency translation adjustments	11,071	(17,630)
Comprehensive income	$ 67,539	$ 38,502

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 56,468	$ 56,132
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17,432	19,428
Deferred income tax expense	8,676	7,116
Provision for bad debts	127	316
Stock-based compensation expense	7,078	7,831
Excess tax benefits from stock-based compensation	(2,148)	(2,582)
Other	(225)	(34)
Changes in operating assets and liabilities:
Accounts receivable	9,860	18,407
Other receivables and current assets	29,810	17,834
Other long-term assets	(92)	(238)
Accounts payable, accrued expenses and current liabilities	(32,258)	(36,971)
Accrued income taxes	14,602	9,634
Deferred revenue	5,387	19,734
Other long-term liabilities	(6,142)	(2,487)
Net cash provided by operating activities	108,575	114,120
Cash flows from investing activities:
Acquisitions, net of cash acquired	0	(10,477)
Capital expenditures	(2,695)	(3,622)
Other investing activities	4	(67)
Net cash used in investing activities	(2,691)	(14,166)
Cash flows from financing activities:
Principal payments on capital leases	(1)	(5)
Purchase of treasury stock	(42,684)	(125,627)
Restricted stock withholding taxes paid in lieu of issued shares	(4,752)	(4,243)
Contingent consideration payments	(1,048)	0
Proceeds from shares issued for stock-based compensation	10,136	15,770
Excess tax benefits from stock-based compensation	2,148	2,582
Net cash used in financing activities	(36,201)	(111,523)
Effect of exchange rate fluctuations on cash and cash equivalents	9,584	(16,101)
Net increase (decrease) in cash and cash equivalents	79,267	(27,670)
Cash and cash equivalents, beginning of period	784,168	788,064
Cash and cash equivalents, end of period	863,435	760,394
Supplemental disclosures of cash flow information:
Income taxes paid	6,037	3,273
Interest paid	$ 435	$ 22

Organization

Organization	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization ANSYS, Inc. (hereafter the "Company" or "ANSYS") develops and globally markets engineering simulation software and technologies widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. As defined by the accounting guidance for segment reporting, the Company operates as one segment. Given the integrated approach to the multi-discipline problem-solving needs of the Company's customers, a single sale of software may contain components from multiple product areas and include combined technologies. The Company also has a multi-year product and integration strategy that will result in new, combined products or changes to or discontinuation of the historical product offerings. As a result, it is impracticable for the Company to provide accurate historical or current reporting among its various product lines.

Accounting Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by ANSYS in accordance with accounting principles generally accepted in the United States for interim financial information for commercial and industrial companies and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the accompanying statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements (and notes thereto) included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . The condensed consolidated December 31, 2015 balance sheet presented is derived from the audited December 31, 2015 balance sheet included in the most recent Annual Report on Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for any future period. Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market mutual funds. Cash equivalents are carried at cost, which approximates fair value. The Company’s cash and cash equivalent balances comprise the following: March 31, 2016 December 31, 2015 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 521,033 60.3 $ 427,244 54.5 Money market mutual funds 342,402 39.7 356,924 45.5 Total $ 863,435 $ 784,168 The Company's money market mutual fund balances are held in various funds of a single issuer.

Other Receivables and Current A

Other Receivables and Current Assets	3 Months Ended
	Mar. 31, 2016
Prepaid Expense and Other Assets, Current [Abstract]
Other Receivables and Current Assets	Other Receivables and Current Assets The Company's other receivables and current assets comprise the following balances: (in thousands) March 31, December 31, Receivables related to unrecognized revenue $ 135,425 $ 170,186 Income taxes receivable, including overpayments and refunds 10,327 7,877 Prepaid expenses and other current assets 26,552 22,170 Total other receivables and current assets $ 172,304 $ 200,233 Receivables for unrecognized revenue represent the current portion of billings made for annual lease licenses and software maintenance that have not yet been recognized as revenue.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share ("EPS") amounts are computed by dividing earnings by the weighted average number of common shares outstanding during the period. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive equivalents outstanding. To the extent stock options are anti-dilutive, they are excluded from the calculation of diluted EPS. The details of basic and diluted EPS are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Net income $ 56,468 $ 56,132 Weighted average shares outstanding – basic 88,114 90,059 Dilutive effect of stock plans 1,970 2,081 Weighted average shares outstanding – diluted 90,084 92,140 Basic earnings per share $ 0.64 $ 0.62 Diluted earnings per share $ 0.63 $ 0.61 Anti-dilutive shares 287 237

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The Company's intangible assets and estimated useful lives are classified as follows: March 31, 2016 December 31, 2015 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Developed software and core technologies (3 – 11 years) $ 336,884 $ (257,505 ) $ 336,262 $ (251,201 ) Customer lists and contract backlog (5 – 15 years) 162,650 (80,712 ) 159,885 (76,160 ) Trade names (2 – 10 years) 127,991 (79,988 ) 127,903 (76,493 ) Total $ 627,525 $ (418,205 ) $ 624,050 $ (403,854 ) Indefinite-lived intangible assets: Trade name $ 357 $ 357 Amortization expense for the intangible assets reflected above was $12.7 million and $14.4 million for the three months ended March 31, 2016 and 2015 , respectively. As of March 31, 2016 , estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) Remainder of 2016 $ 38,143 2017 47,999 2018 34,640 2019 21,164 2020 20,061 2021 15,927 Thereafter 31,386 Total intangible assets subject to amortization 209,320 Indefinite-lived trade name 357 Other intangible assets, net $ 209,677 The changes in goodwill during the three months ended March 31, 2016 and 2015 were as follows: (in thousands) 2016 2015 Beginning balance – January 1 $ 1,332,348 $ 1,312,182 Acquisitions — 5,411 Adjustments (1) — 657 Currency translation 1,781 (3,205 ) Ending balance – March 31 $ 1,334,129 $ 1,315,045 (1) In accordance with the accounting for business combinations, the Company recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as the Company obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. During the first quarter of 2016 , the Company completed the annual impairment test for goodwill and the indefinite-lived intangible asset and determined that these assets had not been impaired as of the test date, January 1, 2016 . No other events or circumstances changed during the three months ended March 31, 2016 that would indicate that the fair values of the Company's reporting unit and indefinite-lived intangible asset are below their carrying amounts.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement The valuation hierarchy for disclosure of assets and liabilities reported at fair value prioritizes the inputs for such valuations into three broad levels: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2: quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; or • Level 3: unobservable inputs based on the Company's own assumptions used to measure assets and liabilities at fair value. A financial asset's or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following tables provide the assets and liabilities carried at fair value and measured on a recurring basis: Fair Value Measurements at Reporting Date Using: (in thousands) March 31, Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 342,402 $ 342,402 $ — $ — Short-term investments $ 442 $ — $ 442 $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2015 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 356,924 $ 356,924 $ — $ — Short-term investments $ 446 $ — $ 446 $ — Liabilities Contingent consideration $ (1,376 ) $ — $ — $ (1,376 ) The cash equivalents in the preceding tables represent money market mutual funds. The short-term investments in the preceding tables represent deposits held by certain foreign subsidiaries of the Company. The deposits have fixed interest rates with maturity dates ranging from three months to one year. The contingent consideration in the table above represents the final payment related to the 2013 acquisition of EVEN - Evolutionary Engineering AG ("EVEN"). The net present value calculation for the contingent consideration, which was paid during the quarter ended March 31, 2016, included significant unobservable inputs as of December 31, 2015 in the assumption that the remaining payment would be made, and, therefore, the liability was classified as Level 3 in the fair value hierarchy. The following tables present the changes in the Company’s Level 3 liabilities that are measured at fair value on a recurring basis during the three months ended March 31, 2016 and 2015 : Fair Value Measurement Using Significant Unobservable Inputs (in thousands) Contingent Consideration Balance as of January 1, 2016 $ 1,376 Contingent payment (1,448 ) Interest expense and foreign exchange activity included in earnings 72 Balance as of March 31, 2016 $ — Fair Value Measurement Using Significant Unobservable Inputs (in thousands) Contingent Consideration Balance as of January 1, 2015 $ 2,621 Interest expense and foreign exchange activity included in earnings 122 Balance as of March 31, 2015 $ 2,743 The carrying values of cash, accounts receivable, accounts payable, accrued expenses, other accrued liabilities and short-term obligations approximate their fair values because of their short-term nature.

Geographic Information

Geographic Information	3 Months Ended
	Mar. 31, 2016
Segments, Geographical Areas [Abstract]
Geographic Information	Geographic Information Revenue to external customers is attributed to individual countries based upon the location of the customer. Revenue by geographic area is as follows: Three Months Ended (in thousands) March 31, March 31, United States $ 85,377 $ 81,469 Japan 27,855 26,698 Germany 23,367 23,227 South Korea 11,891 11,146 France 11,714 11,540 Canada 3,383 3,283 Other European 33,989 33,568 Other international 28,330 26,850 Total revenue $ 225,906 $ 217,781 Property and equipment by geographic area is as follows: (in thousands) March 31, December 31, United States $ 47,184 $ 47,971 Europe 6,305 6,808 India 2,977 3,286 Other international 3,685 3,859 Total property and equipment, net $ 60,151 $ 61,924

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
Share-based Compensation [Abstract]
Stock-Based Compensation	Stock-Based Compensation Total stock-based compensation expense and its net impact on basic and diluted earnings per share are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Cost of sales: Software licenses $ 155 $ 193 Maintenance and service 367 416 Operating expenses: Selling, general and administrative 2,924 4,067 Research and development 3,632 3,155 Stock-based compensation expense before taxes 7,078 7,831 Related income tax benefits (2,043 ) (2,818 ) Stock-based compensation expense, net of taxes $ 5,035 $ 5,013 Net impact on earnings per share: Basic earnings per share $ (0.06 ) $ (0.06 ) Diluted earnings per share $ (0.06 ) $ (0.05 )

Stock Repurchase Program

Stock Repurchase Program	3 Months Ended
	Mar. 31, 2016
Class of Stock Disclosures [Abstract]
Stock Repurchase Program	Stock Repurchase Program Under the Company's stock repurchase program, the Company repurchased shares during the three months ended March 31, 2016 and 2015 , as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Number of shares repurchased 500 1,507 Average price paid per share $ 85.37 $ 83.38 Total cost $ 42,684 $ 125,627 In February 2016, the Company's Board of Directors increased the number of shares authorized for repurchase to a total of 5.0 million shares under the stock repurchase program. As of March 31, 2016 , 4.5 million shares remained available for repurchase under the program.

Contingencies and Commitments

Contingencies and Commitments	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Contingencies and Commitments The Company is subject to various investigations, claims and legal proceedings that arise in the ordinary course of business, including commercial disputes, labor and employment matters, tax audits, alleged infringement of intellectual property rights and other matters. In the opinion of the Company, the resolution of pending matters is not expected to have a material, adverse effect on the Company’s consolidated results of operations, cash flows or financial position. However, each of these matters is subject to various uncertainties and it is possible that an unfavorable resolution of one or more of these proceedings could materially affect the Company’s results of operations, cash flows or financial position. An Indian subsidiary of the Company received a formal inquiry after a service tax audit was held in 2011. The Company could incur tax charges and related liabilities, including those related to the service tax audit case, of approximately $7 million . The service tax issues raised in the Company’s notice are very similar to the case, M/s Microsoft Corporation (I) (P) Ltd. Vs Commissioner of Service Tax , New Delhi , wherein the Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has passed a favorable ruling to Microsoft. The Company can provide no assurances on whether the Microsoft case’s favorable ruling will be challenged in higher courts or on the impact that the present Microsoft case’s decision will have on the Company’s audit case. The Company is uncertain as to when the service tax audit will be completed. The Company sells software licenses and services to its customers under proprietary software license agreements. Each license agreement contains the relevant terms of the contractual arrangement with the customer, and generally includes certain provisions for indemnifying the customer against losses, expenses and liabilities from damages that are incurred by or awarded against the customer in the event the Company’s software or services are found to infringe upon a patent, copyright or other proprietary right of a third party. To date, the Company has not had to reimburse any of its customers for any losses related to these indemnification provisions and no material claims asserted under these indemnification provisions are outstanding as of March 31, 2016 . For several reasons, including the lack of prior material indemnification claims, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions.

New Accounting Guidance

New Accounting Guidance	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Guidance	New Accounting Guidance Employee share-based payment accounting: In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). This update includes various areas for simplification related to aspects of the accounting for share-based payment transactions. One simplification is that the tax effects of share-based payment settlements will be recorded in the income statement. Prior guidance required tax windfalls at settlement, and tax shortfalls to the extent of previous windfalls, to be recorded in equity. This provision is required to be adopted prospectively. These tax effects will be reported as operating cash flows according to the new guidance as opposed to financing cash flows in the prior guidance. Other simplifications involve the classification of awards as either equity or liabilities and classification on the statements of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the effect that implementation of this update will have on its financial results upon adoption. Leases: In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 requires virtually all leases, other than leases that meet the definition of a short-term lease, to be recorded on the balance sheet with a right-of-use asset and corresponding lease liability. Leases will be classified as either operating or finance leases based on certain criteria. This classification will determine the timing and presentation of expenses on the income statement, as well as the presentation of related cash flows. The standard is effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and a modified retrospective transition is required upon adoption. The Company is currently evaluating the effect that implementation of this update will have on its financial results upon adoption. Revenue from contracts with customers: In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 supersedes most current revenue recognition guidance, including industry-specific guidance. Previous guidance requires an entity to recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectibility is reasonably assured. Under the new guidance, an entity is required to evaluate revenue recognition by identifying a contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when (or as) the entity satisfies a performance obligation. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , delayed the effective date of ASU 2014-09 to annual periods beginning after December 15, 2017, including interim periods within that reporting period. Entities have the option of using a full retrospective, cumulative effect or modified approach to adopt ASU 2014-09. This update will impact the timing and amounts of revenue recognized. The Company is currently evaluating the effect that implementation of this update will have on its financial results upon adoption.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by ANSYS in accordance with accounting principles generally accepted in the United States for interim financial information for commercial and industrial companies and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the accompanying statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements (and notes thereto) included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . The condensed consolidated December 31, 2015 balance sheet presented is derived from the audited December 31, 2015 balance sheet included in the most recent Annual Report on Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for any future period.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market mutual funds. Cash equivalents are carried at cost, which approximates fair value. The Company’s cash and cash equivalent balances comprise the following: March 31, 2016 December 31, 2015 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 521,033 60.3 $ 427,244 54.5 Money market mutual funds 342,402 39.7 356,924 45.5 Total $ 863,435 $ 784,168 The Company's money market mutual fund balances are held in various funds of a single issuer.

Accounting Policies (Tables)

Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Cash and Cash Equivalents	The Company’s cash and cash equivalent balances comprise the following: March 31, 2016 December 31, 2015 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 521,033 60.3 $ 427,244 54.5 Money market mutual funds 342,402 39.7 356,924 45.5 Total $ 863,435 $ 784,168

Other Receivables and Current20

Other Receivables and Current Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of Other Receivables and Current Assets	The Company's other receivables and current assets comprise the following balances: (in thousands) March 31, December 31, Receivables related to unrecognized revenue $ 135,425 $ 170,186 Income taxes receivable, including overpayments and refunds 10,327 7,877 Prepaid expenses and other current assets 26,552 22,170 Total other receivables and current assets $ 172,304 $ 200,233

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Details of Basic and Diluted EPS	The details of basic and diluted EPS are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Net income $ 56,468 $ 56,132 Weighted average shares outstanding – basic 88,114 90,059 Dilutive effect of stock plans 1,970 2,081 Weighted average shares outstanding – diluted 90,084 92,140 Basic earnings per share $ 0.64 $ 0.62 Diluted earnings per share $ 0.63 $ 0.61 Anti-dilutive shares 287 237

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Estimated Useful Lives	The Company's intangible assets and estimated useful lives are classified as follows: March 31, 2016 December 31, 2015 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Developed software and core technologies (3 – 11 years) $ 336,884 $ (257,505 ) $ 336,262 $ (251,201 ) Customer lists and contract backlog (5 – 15 years) 162,650 (80,712 ) 159,885 (76,160 ) Trade names (2 – 10 years) 127,991 (79,988 ) 127,903 (76,493 ) Total $ 627,525 $ (418,205 ) $ 624,050 $ (403,854 ) Indefinite-lived intangible assets: Trade name $ 357 $ 357
Estimated Future Amortization Expense for Intangible Assets	As of March 31, 2016 , estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) Remainder of 2016 $ 38,143 2017 47,999 2018 34,640 2019 21,164 2020 20,061 2021 15,927 Thereafter 31,386 Total intangible assets subject to amortization 209,320 Indefinite-lived trade name 357 Other intangible assets, net $ 209,677
Changes in Goodwill	The changes in goodwill during the three months ended March 31, 2016 and 2015 were as follows: (in thousands) 2016 2015 Beginning balance – January 1 $ 1,332,348 $ 1,312,182 Acquisitions — 5,411 Adjustments (1) — 657 Currency translation 1,781 (3,205 ) Ending balance – March 31 $ 1,334,129 $ 1,315,045

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities Measured on Recurring Basis	The following tables provide the assets and liabilities carried at fair value and measured on a recurring basis: Fair Value Measurements at Reporting Date Using: (in thousands) March 31, Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 342,402 $ 342,402 $ — $ — Short-term investments $ 442 $ — $ 442 $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2015 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 356,924 $ 356,924 $ — $ — Short-term investments $ 446 $ — $ 446 $ — Liabilities Contingent consideration $ (1,376 ) $ — $ — $ (1,376 )
Changes in Level 3 Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs	The following tables present the changes in the Company’s Level 3 liabilities that are measured at fair value on a recurring basis during the three months ended March 31, 2016 and 2015 : Fair Value Measurement Using Significant Unobservable Inputs (in thousands) Contingent Consideration Balance as of January 1, 2016 $ 1,376 Contingent payment (1,448 ) Interest expense and foreign exchange activity included in earnings 72 Balance as of March 31, 2016 $ — Fair Value Measurement Using Significant Unobservable Inputs (in thousands) Contingent Consideration Balance as of January 1, 2015 $ 2,621 Interest expense and foreign exchange activity included in earnings 122 Balance as of March 31, 2015 $ 2,743

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segments, Geographical Areas [Abstract]
Revenue by Geographic Area	Revenue by geographic area is as follows: Three Months Ended (in thousands) March 31, March 31, United States $ 85,377 $ 81,469 Japan 27,855 26,698 Germany 23,367 23,227 South Korea 11,891 11,146 France 11,714 11,540 Canada 3,383 3,283 Other European 33,989 33,568 Other international 28,330 26,850 Total revenue $ 225,906 $ 217,781
Property and Equipment by Geographic Area	Property and equipment by geographic area is as follows: (in thousands) March 31, December 31, United States $ 47,184 $ 47,971 Europe 6,305 6,808 India 2,977 3,286 Other international 3,685 3,859 Total property and equipment, net $ 60,151 $ 61,924

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Share-based Compensation [Abstract]
Stock-Based Compensation Expense and Its Net Impact on Basic and Diluted Earnings Per Share	Total stock-based compensation expense and its net impact on basic and diluted earnings per share are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Cost of sales: Software licenses $ 155 $ 193 Maintenance and service 367 416 Operating expenses: Selling, general and administrative 2,924 4,067 Research and development 3,632 3,155 Stock-based compensation expense before taxes 7,078 7,831 Related income tax benefits (2,043 ) (2,818 ) Stock-based compensation expense, net of taxes $ 5,035 $ 5,013 Net impact on earnings per share: Basic earnings per share $ (0.06 ) $ (0.06 ) Diluted earnings per share $ (0.06 ) $ (0.05 )

Stock Repurchase Program (Table

Stock Repurchase Program (Tables)	3 Months Ended
	Mar. 31, 2016
Class of Stock Disclosures [Abstract]
Stock Repurchase Program	Under the Company's stock repurchase program, the Company repurchased shares during the three months ended March 31, 2016 and 2015 , as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Number of shares repurchased 500 1,507 Average price paid per share $ 85.37 $ 83.38 Total cost $ 42,684 $ 125,627

Organization - Additional Infor

Organization - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Cash accounts, Amount	$ 521,033	$ 427,244
Money market mutual funds, Amount	342,402	356,924
Total	$ 863,435	$ 784,168	$ 760,394	$ 788,064
Cash accounts, % of Total	60.34%	54.48%
Money market mutual funds, % of Total	39.66%	45.52%

Other Receivables and Current29

Other Receivables and Current Assets - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other receivables and current assets	$ 172,304	$ 200,233
Deferred Accounts Receivable Current Portion Of Annual Lease Licenses And Software Maintenance [Member]
Other receivables and current assets	135,425	170,186
Taxes Receivable Related To Overpayments And Refunds [Member]
Other receivables and current assets	10,327	7,877
Prepaid Expenses and Other Current Assets [Member]
Other receivables and current assets	$ 26,552	$ 22,170

Details of Basic and Diluted EP

Details of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 56,468	$ 56,132
Weighted average shares outstanding - basic	88,114	90,059
Dilutive effect of stock plans	1,970	2,081
Weighted average shares outstanding - diluted	90,084	92,140
Basic earnings per share	$ 0.64	$ 0.62
Diluted earnings per share	$ 0.63	$ 0.61
Anti-dilutive options	287	237

Intangible Assets (Detail)

Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Intangible Assets [Line Items]
Amortized intangible assets, gross carrying amount	$ 627,525	$ 624,050
Amortized intangible assets, accumulated amortization	(418,205)	(403,854)
Indefinite-lived intangible assets (excluding goodwill)	357
Trade Names
Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	357	357
Developed Software and Core Technologies
Intangible Assets [Line Items]
Amortized intangible assets, gross carrying amount	336,884	336,262
Amortized intangible assets, accumulated amortization	(257,505)	(251,201)
Customer Lists and Contract Backlog
Intangible Assets [Line Items]
Amortized intangible assets, gross carrying amount	162,650	159,885
Amortized intangible assets, accumulated amortization	(80,712)	(76,160)
Trade Names
Intangible Assets [Line Items]
Amortized intangible assets, gross carrying amount	127,991	127,903
Amortized intangible assets, accumulated amortization	$ (79,988)	$ (76,493)

Estimated Useful Lives (Detail)

Estimated Useful Lives (Detail)	3 Months Ended
	Mar. 31, 2016
Minimum [Member] | Developed Software and Core Technologies
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	3 years
Minimum [Member] | Customer Lists and Contract Backlog
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	5 years
Minimum [Member] | Trade Names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	2 years
Maximum [Member] | Developed Software and Core Technologies
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	11 years
Maximum [Member] | Customer Lists and Contract Backlog
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	15 years
Maximum [Member] | Trade Names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	10 years

Goodwill and Intangible Asset33

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 12,669	$ 14,434

Estimated Future Amortization E

Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2016	$ 38,143
2,017	47,999
2,018	34,640
2,019	21,164
2,020	20,061
2,021	15,927
Thereafter	31,386
Total intangible assets subject to amortization	209,320
Indefinite-lived intangible assets (excluding goodwill)	357
Other intangible assets, net	$ 209,677	$ 220,553

Changes in Goodwill (Detail)

Changes in Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill [Roll Forward]
Beginning balance	$ 1,332,348	$ 1,312,182
Acquisitions	0	5,411
Adjustments	0	657
Currency translation	1,781	(3,205)
Ending balance	$ 1,334,129	$ 1,315,045

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 342,402	$ 356,924
Short-term investments	442	446
Contingent consideration		(1,376)
Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	342,402	356,924
Short-term investments	0	0
Contingent consideration		0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	442	446
Contingent consideration		0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	$ 0	0
Contingent consideration		$ (1,376)

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments maturity	3 months
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments maturity	1 year

Changes in Level 3 Liabilities

Changes in Level 3 Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) - Significant Unobservable Inputs (Level 3) - Contingent Consideration - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 1,376	$ 2,621
Contingent payments	(1,448)
Interest expense and foreign exchange activity included in earnings	72	122
Ending balance	$ 0	$ 2,743

Revenue by Geographic Area (Det

Revenue by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 225,906	$ 217,781
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	85,377	81,469
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	27,855	26,698
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	23,367	23,227
South Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	11,891	11,146
France
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	11,714	11,540
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	3,383	3,283
Other European
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	33,989	33,568
Other international
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 28,330	$ 26,850

Property and Equipment by Geogr

Property and Equipment by Geographic Area (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 60,151	$ 61,924
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	47,184	47,971
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	6,305	6,808
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	2,977	3,286
Other international
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 3,685	$ 3,859

Stock-Based Compensation Expens

Stock-Based Compensation Expense and Its Net Impact on Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before taxes	$ 7,078	$ 7,831
Related income tax benefits	(2,043)	(2,818)
Stock-based compensation expense, net of taxes	$ 5,035	$ 5,013
Basic earnings per share	$ (0.06)	$ (0.06)
Diluted earnings per share	$ (0.06)	$ (0.05)
Software Licenses
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before taxes	$ 155	$ 193
Maintenance and Service
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before taxes	367	416
Selling, General and Administrative
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before taxes	2,924	4,067
Research and Development
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense before taxes	$ 3,632	$ 3,155

Stock Repurchase Program - Addi

Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Class of Stock Disclosures [Abstract]
Number of shares repurchased	500	1,507
Average price paid per share	$ 85.37	$ 83.38
Total cost	$ 42,684	$ 125,627
Stock repurchase program, repurchase authorization	5,000
Stock repurchase program, remaining number of shares authorized to be repurchased	4,500

Contingencies and Commitments -

Contingencies and Commitments - Additional Information (Detail) $ in Millions	Mar. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss contingency, estimate of possible loss	$ 7