Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 84,297,814 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 695,894 | $ 881,501 |
Short-term investments | 269 | 286 |
Accounts receivable, less allowance for doubtful accounts of $7,300 and $6,800, respectively | 258,280 | 124,659 |
Other receivables and current assets | 188,542 | 263,820 |
Total current assets | 1,142,985 | 1,270,266 |
Property and equipment, net | 56,501 | 57,096 |
Goodwill | 1,575,276 | 1,378,553 |
Other intangible assets, net | 229,654 | 157,625 |
Other long-term assets | 39,101 | 35,972 |
Deferred income taxes | 14,733 | 42,111 |
Total assets | 3,058,250 | 2,941,623 |
Current liabilities: | ||
Accounts payable | 7,598 | 6,042 |
Accrued bonuses and commissions | 32,520 | 69,925 |
Accrued income taxes | 5,700 | 5,760 |
Other accrued expenses and liabilities | 82,304 | 86,335 |
Deferred revenue - current | 306,879 | 440,491 |
Total current liabilities | 435,001 | 608,553 |
Long-term liabilities: | ||
Deferred income taxes | 38,772 | 1,461 |
Other long-term liabilities | 76,998 | 85,778 |
Total long-term liabilities | 115,770 | 87,239 |
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 | 837,324 | 873,357 |
Retained earnings | 2,676,924 | 2,316,916 |
Treasury stock, at cost: 8,988,593 and 9,044,498 shares, respectively | (951,912) | (907,530) |
Accumulated other comprehensive loss | (55,789) | (37,844) |
Total stockholders' equity | 2,507,479 | 2,245,831 |
Total liabilities and stockholders' equity | $ 3,058,250 | $ 2,941,623 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 7,300 | $ 6,800 |
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 | 8,988,593 | 9,044,498 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 305,913 | $ 263,924 | $ 588,786 | $ 517,329 |
Cost of sales: | ||||
Amortization | 9,087 | 8,952 | 17,873 | 17,888 |
Total cost of sales | 40,450 | 36,338 | 79,488 | 73,369 |
Gross profit | 265,463 | 227,586 | 509,298 | 443,960 |
Operating expenses: | ||||
Selling, general and administrative | 95,058 | 77,051 | 182,867 | 150,468 |
Research and development | 58,357 | 49,002 | 115,887 | 103,380 |
Amortization | 3,495 | 3,139 | 6,930 | 6,246 |
Total operating expenses | 156,910 | 129,192 | 305,684 | 260,094 |
Operating income | 108,553 | 98,394 | 203,614 | 183,866 |
Interest income | 2,176 | 1,668 | 4,461 | 2,917 |
Other expense, net | (1,007) | (190) | (1,315) | (1,344) |
Income before income tax provision | 109,722 | 99,872 | 206,760 | 185,439 |
Income tax provision | 17,126 | 30,142 | 29,884 | 52,403 |
Net income | $ 92,596 | $ 69,730 | $ 176,876 | $ 133,036 |
Earnings per share - basic: | ||||
Earnings per share | $ 1.10 | $ 0.82 | $ 2.11 | $ 1.56 |
Weighted average shares | 84,105 | 85,167 | 84,018 | 85,311 |
Earnings per share - diluted: | ||||
Earnings per share | $ 1.08 | $ 0.80 | $ 2.06 | $ 1.53 |
Weighted average shares | 85,986 | 86,895 | 86,069 | 87,060 |
Software licenses | ||||
Revenue: | ||||
Total revenue | $ 131,147 | $ 149,880 | $ 241,193 | $ 291,788 |
Cost of sales: | ||||
Total cost of sales | 4,099 | 7,525 | 8,010 | 16,802 |
Maintenance and service | ||||
Revenue: | ||||
Total revenue | 174,766 | 114,044 | 347,593 | 225,541 |
Cost of sales: | ||||
Total cost of sales | $ 27,264 | $ 19,861 | $ 53,605 | $ 38,679 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 92,596 | $ 69,730 | $ 176,876 | $ 133,036 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (26,188) | 6,507 | (17,945) | 14,076 |
Comprehensive income | $ 66,408 | $ 76,237 | $ 158,931 | $ 147,112 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 176,876 | $ 133,036 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 33,738 | 33,009 |
Deferred income tax (benefit) expense | (11,943) | 4,691 |
Provision for bad debts | 485 | 1,181 |
Stock-based compensation expense | 35,904 | 24,635 |
Other | 1,137 | 26 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 27,524 | 24,895 |
Other receivables and current assets | (1,756) | 44,314 |
Other long-term assets | 2,314 | 5,194 |
Accounts payable, accrued expenses and current liabilities | (45,976) | (33,130) |
Accrued income taxes | (3,117) | (788) |
Deferred revenue | 33,138 | (1,710) |
Other long-term liabilities | (4,782) | 2,722 |
Net cash provided by operating activities | 243,542 | 238,075 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (283,026) | (5,864) |
Capital expenditures | (6,751) | (7,502) |
Other investing activities | (5,476) | (11,884) |
Net cash used in investing activities | (295,253) | (25,250) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (117,831) | (223,291) |
Restricted stock withholding taxes paid in lieu of issued shares | (25,041) | (9,037) |
Proceeds from shares issued for stock-based compensation | 26,602 | 41,626 |
Other financing activities | (4,939) | 0 |
Net cash used in financing activities | (121,209) | (190,702) |
Effect of exchange rate fluctuations on cash and cash equivalents | (12,687) | 13,394 |
Net (decrease) increase in cash and cash equivalents | (185,607) | 35,517 |
Cash and cash equivalents, beginning of period | 881,501 | 822,479 |
Cash and cash equivalents, end of period | 695,894 | 857,996 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | $ 46,662 | $ 55,895 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2018 | |
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 services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia, including aerospace and defense, automotive, electronics, semiconductors, energy, materials and chemical processing, turbomachinery, consumer products, healthcare, and sports. 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 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 | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 . The condensed consolidated December 31, 2017 balance sheet presented is derived from the audited December 31, 2017 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. Certain items in the notes to the condensed consolidated financial statements of prior years have been reclassified to conform to the current year's presentation. These reclassifications had no effect on reported net income, comprehensive income, cash flows, total assets or total liabilities and stockholders' equity. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any future period. Changes in Accounting Policies The Company’s accounting policies are described in Note 2, “Accounting Policies,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Summarized below is the accounting guidance adopted subsequent to December 31, 2017 . Revenue from contracts with customers: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). The Company adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) effective January 1, 2018 using the modified retrospective approach. See Note 3 for the required disclosures related to the impact of adopting this standard and a discussion of the Company's updated policies related to revenue recognition. Income taxes: In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16). The Company adopted ASU 2016-16 effective January 1, 2018 using the modified retrospective approach. Previous guidance required the tax effects from intra-entity asset transfers to be deferred until the asset was sold to a third party or recovered through use. ASU 2016-16 eliminated this deferral for all intra-entity asset transfers other than inventory. The adoption of the standard did not have a material effect on the Company’s condensed consolidated financial statements. Business combinations: In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). The Company prospectively adopted ASU 2017-01 effective January 1, 2018. This standard narrows the definition of a business. If substantially all the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the acquiree is not a business. The standard also requires a business to include an input and a substantive process that significantly contributes to the ability to create outputs. This definition is expected to reduce the number of acquisitions accounted for as business combinations, which will impact the accounting treatment of certain items, including the accounting treatment of contingent consideration and transaction expenses. The acquisition of OPTIS met the definition of a business under ASU 2017-01. Accounting Guidance Issued and Not Yet Adopted 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 or leases of intangible assets, to be recorded on the balance sheet with a right-of-use asset and a 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. A modified retrospective transition is required upon adoption. The Company does not expect to early adopt and continues to evaluate the effect that this update will have on its financial results upon adoption. The Company's preliminary assessment is that this update may materially increase the Company's assets and liabilities upon adoption. The Company has completed the initial inventory of its leases and policy elections, and expects that it will primarily have operating leases. The Company is currently developing new processes and controls to meet the accounting and disclosure requirements under the new standard. Credit losses: In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The current guidance requires the allowance for doubtful accounts to be estimated based on an incurred loss model, which considers past and current conditions. ASU 2016-13 requires companies to use an expected loss model that also considers reasonable and supportable forecasts of future conditions. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that reporting period. The standard requires a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the effect that this update will have on its financial results upon adoption. Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market funds. Cash equivalents are carried at cost, which approximates fair value. The Company’s cash and cash equivalent balances comprise the following: June 30, 2018 December 31, 2017 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 305,154 43.9 $ 568,587 64.5 Money market funds 390,740 56.1 312,914 35.5 Total $ 695,894 $ 881,501 The Company's money market fund balances are held in various funds of a single issuer. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Adoption of ASC 606, Revenue from Contracts with Customers The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach for all contracts not completed as of the date of adoption. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 605, Revenue Recognition (ASC 605). The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the delivery of the Company’s software licenses, maintenance and services. ASC 606 requires an entity 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. The Company recorded an increase to retained earnings of $242.4 million , or $183.1 million net of tax, on January 1, 2018 due to the cumulative effect of the ASC 606 adoption, with the impact primarily derived from revenue related to time-based software lease licenses. Revenue Recognition Revenue is derived principally from the licensing of computer software products and from related maintenance contracts. The Company enters into contracts that include combinations of products, maintenance and services, which are accounted for as separate performance obligations with differing revenue recognition patterns. Revenue from perpetual licenses is classified as software license revenue. Software license revenue is recognized up front upon delivery of the licensed product and the utility that enables the customer to access authorization keys, provided that a signed contract has been received. Typically, the Company’s perpetual licenses are sold with post-contract support (PCS), which includes unspecified technical enhancements and customer support. The Company allocates value in bundled perpetual and PCS arrangements based on the standalone selling prices of the perpetual license and PCS. Revenue from PCS is classified as maintenance revenue and is recognized ratably over the term of the contract, as the Company satisfies the PCS performance obligation over time. In addition to perpetual licenses, the Company sells time-based lease licenses. Lease licenses are sold only as a bundled arrangement that includes the rights to a term software license and PCS. Maximizing the use of observable inputs, the Company determined that 50% of the estimated standalone selling price of the lease license is attributable to the term license and 50% is attributable to the PCS. Consistent with the perpetual sales, the license component is classified as software license revenue and recognized as revenue up front at the commencement of the lease. The PCS is classified as maintenance revenue and is recognized ratably over the term of the contract, as the Company provides the PCS benefit over time. Revenue from training, support and other services is recognized as the services are performed. For contracts in which the service consists of a single performance obligation, such as providing a training class to a customer, the Company recognizes revenue upon completion of the performance obligation. For service contracts that are longer in duration and often include multiple performance obligations (for example, both training and consulting), the Company measures the progress toward completion of the obligations and recognizes revenue accordingly. In measuring progress towards the completion of performance obligations, the Company typically utilizes output-based estimates for services with contractual billing arrangements that are not based on time and materials, and estimates output based on the total tasks completed as compared to the total tasks required for each work contract. Input-based estimates are utilized for services that involve general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure. The Company also executes arrangements through independent channel partners in which the channel partners are authorized to market and distribute the Company's software products to end users of the Company's products and services in specified territories. In sales facilitated by channel partners, the channel partner bears the risk of collection from the end-user customer. The Company recognizes revenue from transactions with channel partners when the channel partner submits a purchase commitment, collectability from the channel partner is probable, a license agreement signed by the end-user customer is received and the performance obligation was met, at a point in time or over time as appropriate, provided that all other revenue recognition criteria are satisfied. Revenue from channel partner transactions is the amount remitted to the Company by the channel partners. This amount includes a fee for PCS that is compensation for providing technical enhancements and the second level of technical support to the end user, which is recognized over the period that PCS is to be provided. The Company does not offer right of return, product rotation or price protection to any of its channel partners. Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the condensed consolidated balance sheet as accounts receivable and accrued expenses. The collection and payment of these amounts are reported on a net basis in the condensed consolidated statements of income and do not impact reported revenues or expenses. The Company warrants to its customers that its software will perform substantially as specified in the Company's current user manuals. The Company has not experienced significant claims related to software warranties beyond the scope of maintenance support, which the Company is already obligated to provide. The warranty is not sold, and cannot be purchased, separately. The warranty does not provide any type of additional service to the customer or performance obligation for the Company. Significant Judgments The Company’s contracts with customers typically include promises to transfer licenses and services to a customer. Judgment is required to determine if the promises are separate performance obligations, and if so, the allocation of the transaction price to each performance obligation. The Company uses the estimated standalone selling price method to allocate the transaction price for items that are not sold separately, particularly lease licenses sold with PCS. The estimated standalone selling price is determined using all information reasonably available to the Company, including market conditions and other observable inputs. The corresponding revenues are recognized as the related performance obligations are satisfied. The Company applies a practical expedient to expense sales commissions as incurred when the amortization period would have been one year or less. Certain sales commissions associated with multi-year contracts are subject to an employee service requirement. As an action beyond each party approving the contract is required to trigger these sales commissions, they are not considered incremental costs to obtain a contract and are expensed as incurred. The Company is required to adjust promised amounts of consideration for the effects of the time value of money if the timing of the payments provides the customer or the Company with a significant financing benefit. The Company considers various factors in assessing whether a financing component exists, including the duration of the contract, market interest rates and the timing of payments. The Company’s contracts do not include a significant financing component requiring adjustment to the transaction price. Impact of ASC 606 on Condensed Consolidated Financial Statement Line Items The following table compares the impacted assets and liabilities on the condensed consolidated balance sheet as of June 30, 2018 to the amounts had ASC 605 been in effect: June 30, 2018 (in thousands) As Reported (ASC 606) ASC 605 Change Accounts receivable, less allowance for doubtful accounts of $7,300 $ 258,280 $ 102,762 $ 155,518 Other receivables and current assets 188,542 271,059 (82,517 ) Deferred income tax assets 14,733 45,373 (30,640 ) Accrued income taxes 5,700 3,471 2,229 Other accrued expenses and liabilities 82,304 85,263 (2,959 ) Deferred revenue - current 306,879 462,575 (155,696 ) Deferred income tax liabilities 38,772 22,947 15,825 Other long-term liabilities 76,998 87,802 (10,804 ) Stockholders' equity 2,507,479 2,313,713 193,766 The Company recorded $244.1 million of deferred revenue to retained earnings upon the adoption of ASC 606 on January 1, 2018. The pattern of software lease license revenue recognition has changed under ASC 606. Software lease license revenue was recognized ratably over the term of the contract under the previous guidance; however, approximately 50% of the contract is recognized up front at the commencement of the lease under ASC 606. This change in the pattern of revenue recognition, coupled with the recording of deferred revenue to retained earnings at the adoption date, resulted in the changes to the condensed consolidated balance sheet line items as noted in the table above. The following table compares the impacted amounts on the condensed consolidated statement of income for the three and six months ended June 30, 2018 to the amounts had ASC 605 been in effect: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands, except per share data) As Reported (ASC 606) ASC 605 Change As Reported (ASC 606) ASC 605 Change Revenue: Software licenses $ 131,147 $ 161,193 $ (30,046 ) $ 241,193 $ 316,050 $ (74,857 ) Maintenance and service 174,766 132,833 41,933 347,593 262,545 85,048 Cost of sales: Software licenses 4,099 8,444 (4,345 ) 8,010 16,590 (8,580 ) Maintenance and service 27,264 22,919 4,345 53,605 45,025 8,580 Income tax provision 17,126 15,423 1,703 29,884 28,404 1,480 Earnings per share: Basic $ 1.10 $ 0.98 $ 0.12 $ 2.11 $ 2.00 $ 0.11 Diluted $ 1.08 $ 0.96 $ 0.12 $ 2.06 $ 1.95 $ 0.11 The impacts to reported software licenses revenue, and maintenance and service revenue, were primarily due to the PCS portion of lease license contracts now being allocated to maintenance and service revenue under ASC 606. Under the previous guidance, this revenue was reported as software licenses revenue. This decrease to software licenses revenue was partially offset by the upfront recognition of the license component of lease revenue, which would have been recognized ratably over the contract under prior guidance. Consistent with the change in revenue, there was a corresponding reclassification within cost of sales. Costs incurred related to the PCS portion of lease license contracts were reflected in cost of maintenance and service. Under the previous guidance, such costs were reflected within cost of software licenses. The adoption of ASC 606 had no impact on the Company’s cash flows from operations. However, with the adoption of ASC 606, there will be an acceleration of income tax payments associated with deferred revenue and backlog credited to retained earnings and never recognized as revenue in the financial statements. The 2018 tax payments related to the adoption of ASC 606 are expected to be $12.0 million - $15.0 million . Disaggregation of Revenue The following tables summarize revenue: Three Months Ended June 30, (in thousands) 2018 2018 2017 Revenue: Lease licenses $ 56,821 $ 100,449 $ 92,265 Perpetual licenses 74,326 60,744 57,615 Software licenses 131,147 161,193 149,880 Maintenance 165,603 123,649 107,632 Service 9,163 9,184 6,412 Maintenance and service 174,766 132,833 114,044 Total revenue $ 305,913 $ 294,026 $ 263,924 The Company’s software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract. Under ASC 606, the Company derived 23.7% of its total revenue through the indirect sales channel for the three months ended June 30, 2018 . Under ASC 605, the Company derived 23.9% and 24.3% of its total revenue through the indirect sales channel for the three months ended June 30, 2018 and 2017, respectively. Six Months Ended June 30, (in thousands) 2018 (ASC 606) 2018 (ASC 605) 2017 (ASC 605) Revenue: Lease licenses $ 105,593 $ 202,238 $ 185,899 Perpetual licenses 135,600 113,812 105,889 Software licenses 241,193 316,050 291,788 Maintenance 329,499 244,411 212,038 Service 18,094 18,134 13,503 Maintenance and service 347,593 262,545 225,541 Total revenue $ 588,786 $ 578,595 $ 517,329 Under ASC 606, the Company derived 23.6% of its total revenue through the indirect sales channel for the six months ended June 30, 2018 . Under ASC 605, the Company derived 23.4% and 24.4% of its total revenue through the indirect sales channel for the six months ended June 30, 2018 and 2017, respectively. Deferred Revenue Deferred revenue consists of billings made or payments received in advance of revenue recognition from software license and maintenance agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant. The changes in deferred revenue, inclusive of both current and long-term, are as follows: (in thousands) Six Months Ended June 30, 2018 Beginning balance – January 1 $ 299,730 Acquired deferred revenue 2,470 Recognition of deferred revenue (588,786 ) Deferral of revenue 614,064 Currency translation (3,941 ) Ending balance – June 30 $ 323,537 Revenue recognized during the six months ended June 30, 2018 from amounts included in deferred revenue at the beginning of the period was $251.3 million . Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and backlog. The Company's backlog represents installment billings for periods beyond the current quarterly billing cycle and customer orders received but not processed. Total revenue allocated to remaining performance obligations was $586.9 million as of June 30, 2018 and will be recognized as revenue as follows: (in thousands) Next 12 months $ 433,066 Months 13-24 107,578 Months 25-36 36,645 Thereafter 9,613 Total revenue allocated to remaining performance obligations $ 586,902 |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On May 2, 2018, the Company completed the acquisition of 100% of the shares of OPTIS, a premier provider of software for scientific simulation of light, human vision and physics-based visualization, for a purchase price of $291.0 million , paid in cash. The acquisition will extend the Company's portfolio into the area of optical simulation to provide comprehensive sensor solutions, covering visible and infrared light, electromagnetics and acoustics for camera, radar and lidar. The acquisition met the definition of a business under ASU 2017-01. The operating results of OPTIS have been included in the Company's condensed consolidated financial statements since May 2, 2018, the date of acquisition. The assets and liabilities of OPTIS have been recorded based upon management's estimates of their fair market values as of the acquisition date. The following tables summarize the fair value of consideration transferred and the fair values of identified assets acquired and liabilities assumed at the acquisition date: Fair Value of Consideration Transferred: (in thousands) Cash $ 290,983 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 7,957 Accounts receivable and other tangible assets 17,704 Developed software and core technologies (9 – 10 year life) 47,795 Customer lists (12 year life) 41,303 Trade names (4 – 10 year life) 10,749 Accounts payable and other liabilities (13,096 ) Deferred revenue (2,470 ) Net deferred tax liabilities (21,692 ) Total identifiable net assets $ 88,250 Goodwill $ 202,733 The goodwill, which is not tax-deductible, is attributed to intangible assets that do not qualify for separate recognition, including the assembled workforce of the acquired business and the synergies expected to arise as a result of the acquisition of OPTIS. The fair values of the assets acquired and liabilities assumed are based on preliminary calculations. The estimates and assumptions for these items are subject to change as additional information about what was known and knowable at the acquisition date is obtained during the measurement period (up to one year from the acquisition date). In valuing deferred revenue on the OPTIS balance sheet as of the acquisition date, the Company applied the fair value provisions applicable to the accounting for business combinations. Acquired deferred revenue with a historical carrying value of $14.2 million under ASC 606, and $22.3 million under ASC 605, was ascribed a fair value of $2.5 million on the opening balance sheet. As a result, the Company's post-acquisition revenue will be less than the sum of what would have otherwise been reported by ANSYS and OPTIS absent the acquisition. Under ASC 606, the impact on reported revenue was $2.8 million for the quarter ended June 30, 2018 . The expected impacts on reported revenue are $3.5 million and $8.8 million for the quarter ending September 30, 2018 and for the year ending December 31, 2018 , respectively. Under ASC 605, the impact on reported revenue was $4.5 million for the quarter ended June 30, 2018 . The expected impacts on reported revenue are $5.8 million and $14.5 million for the quarter ending September 30, 2018 and for the year ending December 31, 2018 , respectively. Full pro forma results of operations have not been presented as the effects of the OPTIS business combination were not material to the Company's consolidated results of operations. The table presented below reflects the impact of OPTIS from the date of acquisition to June 30, 2018. The operating loss is derived from the OPTIS legal structure and does not include integration costs borne directly by ANSYS, Inc. and its non-OPTIS subsidiaries as a result of the acquisition. (in thousands) ASC 606 ASC 605 Revenue $ 3,166 $ 2,070 Operating loss $ (3,312 ) $ (4,408 ) |
Receivables, Other Current Asse
Receivables, Other Current Assets and Other Accrued Expenses and Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Receivables, Other Current Assets and Other Accrued Expenses and Liabilities | Receivables, Other Current Assets and Other Accrued Expenses and Liabilities The Company's receivables, other current assets and other accrued expenses and liabilities comprise the following balances: (in thousands) June 30, December 31, Accounts receivable, less allowance for doubtful accounts of $7,300 and $6,800, respectively $ 258,280 $ 124,659 Receivables related to unrecognized revenue $ 116,119 $ 215,155 Income taxes receivable, including overpayments and refunds 35,615 21,663 Prepaid expenses and other current assets 36,808 27,002 Total other receivables and current assets $ 188,542 $ 263,820 Accrued vacation $ 22,108 $ 17,466 Accrued expenses and other current liabilities 60,196 68,869 Total other accrued expenses and liabilities $ 82,304 $ 86,335 Receivables for unrecognized revenue represent the current portion of billings made for software maintenance that have not yet been recognized as revenue. The opening balances of accounts receivable and receivables related to unrecognized revenue, upon the adoption of ASC 606 at January 1, 2018, were $278.8 million and $136.4 million , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
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 awards 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 Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Net income $ 92,596 $ 69,730 $ 176,876 $ 133,036 Weighted average shares outstanding – basic 84,105 85,167 84,018 85,311 Dilutive effect of stock plans 1,881 1,728 2,051 1,749 Weighted average shares outstanding – diluted 85,986 86,895 86,069 87,060 Basic earnings per share $ 1.10 $ 0.82 $ 2.11 $ 1.56 Diluted earnings per share $ 1.08 $ 0.80 $ 2.06 $ 1.53 Anti-dilutive shares — — — 154 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Developed software and core technologies (3 – 11 years) $ 411,991 $ (308,176 ) $ 365,317 $ (297,645 ) Customer lists and contract backlog (5 – 15 years) 210,118 (110,886 ) 171,048 (104,522 ) Trade names (2 – 10 years) 137,499 (111,249 ) 127,200 (104,130 ) Total $ 759,608 $ (530,311 ) $ 663,565 $ (506,297 ) Indefinite-lived intangible asset: Trade name $ 357 $ 357 Amortization expense for the intangible assets reflected above was $12.6 million and $12.1 million for the three months ended June 30, 2018 and 2017 , respectively. Amortization expense for the intangible assets reflected above was $24.8 million and $24.1 million for the six months ended June 30, 2018 and 2017 , respectively. As of June 30, 2018 , estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) Remainder of 2018 $ 16,205 2019 31,830 2020 32,942 2021 30,140 2022 26,438 2023 23,526 Thereafter 68,216 Total intangible assets subject to amortization 229,297 Indefinite-lived trade name 357 Other intangible assets, net $ 229,654 The changes in goodwill during the six months ended June 30, 2018 and 2017 were as follows: (in thousands) 2018 2017 Beginning balance – January 1 $ 1,378,553 $ 1,337,215 Acquisitions 202,733 2,586 Currency translation and other (6,010 ) 3,167 Ending balance – June 30 $ 1,575,276 $ 1,342,968 During the first quarter of 2018 , 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, 2018 . No other events or circumstances changed during the six months ended June 30, 2018 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 carried at fair value and measured on a recurring basis: Fair Value Measurements at Reporting Date Using: (in thousands) June 30, Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 390,740 $ 390,740 $ — $ — Short-term investments $ 269 $ — $ 269 $ — Deferred compensation plan investments $ 1,379 $ 1,379 $ — $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 312,914 $ 312,914 $ — $ — Short-term investments $ 286 $ — $ 286 $ — Deferred compensation plan investments $ 3,742 $ 3,742 $ — $ — The cash equivalents in the preceding tables represent money market 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 deferred compensation plan investments in the preceding tables represent trading securities held in a rabbi trust for the benefit of the non-employee directors. These securities consist of mutual funds traded in an active market with quoted prices. As a result, the plan assets are classified as Level 1 in the fair value hierarchy. The plan assets are recorded within other long-term assets on the Company's condensed consolidated balance sheets. 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Tax Cuts and Jobs Act On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Reform), making broad and complex changes to the U.S. tax code. The SEC staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for the tax effects of Tax Reform and allows for provisional adjustments recorded in the December 31, 2017 financial statements to be adjusted as calculations are completed during the measurement period. SAB 118 provides a measurement period that should not extend beyond one year from enactment for companies to complete the accounting under ASC 740, Income Taxes . As further discussed below, in accordance with SAB 118, the Company was able to complete final or provisional calculations for certain elements of Tax Reform, and the amounts and estimates are included in the financial statements and have been updated as additional information was gathered. For other elements, the Company was not yet able to make reasonable estimates, and therefore, those elements have not been recorded and are accounted for in accordance with ASC 740 on the basis of the tax laws in effect before Tax Reform. The Company’s accounting for the transition tax is incomplete. However, reasonable estimates of certain effects could be calculated, and a provisional adjustment of $16.0 million was recorded in the December 31, 2017 financial statements. To determine the amount of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 earnings and profits (E&P) of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. Based on revised E&P calculations updated during the measurement period, the Company recognized an additional measurement-period adjustment of $1.4 million to the transition tax obligation, with a corresponding adjustment of $1.4 million to tax expense, during the quarter ended March 31, 2018. A total transition tax obligation of $17.4 million has been recorded. Since the Company plans to elect to pay this liability over eight years, $14.3 million of the obligation is recorded in other long-term liabilities, with the balance recorded to accrued income taxes. The Company will continue to gather additional information to more precisely compute the final amount as further adjustments to E&P are determined. The Company expects to complete the accounting within the prescribed measurement period. The Company’s accounting for the indefinite reinvestment assertion is incomplete. However, a reasonable estimate of book and tax basis was calculated, and the Company made a provisional assertion. In general, it is the practice and intention of the Company to repatriate previously taxed earnings and to reinvest all other earnings of its non-U.S. subsidiaries. As part of Tax Reform, the Company incurred U.S. tax on substantially all of the earnings of its non-U.S. subsidiaries as part of the transition tax. This tax increased the Company’s previously taxed earnings and allows for the repatriation of the majority of its foreign earnings without any residual U.S. federal tax. The Company does not believe that there is an excess of the financial reporting basis over the tax basis of investments in foreign subsidiaries. Accordingly, any repatriation in excess of previously taxed earnings will be a non-taxable return of basis. This assertion is subject to change as additional information is gathered to precisely compute the book and tax basis of the Company’s non-U.S. subsidiaries. During the quarter ended June 30, 2018, the Company repatriated $144.3 million of foreign cash. The Company has not made any measurement-period adjustments related to its indefinite reinvestment assertion during the six months ended June 30, 2018. However, the Company will continue to gather additional information and expects to complete the accounting within the measurement period. The Company’s accounting for the global intangible low-taxed income tax (GILTI) is incomplete. Due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of Tax Reform and its application under ASC 740. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the period cost method) or (2) factoring such amounts into the Company’s measurement of its deferred taxes (the deferred method). The Company’s selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing global income to determine whether future U.S. inclusions in taxable income related to GILTI are expected and, if so, the anticipated impact. Whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends not only on the current structure and estimated future results of global operations, but also on the Company’s intent and ability to modify the structure and/or the business. The Company has not made the accounting policy decision regarding whether to record deferred taxes on GILTI or expense taxes as incurred on GILTI. The current GILTI impact, which was immaterial for the three and six months ended June 30, 2018, was recorded in the financial statements. The Company expects to complete the accounting for GILTI within the prescribed measurement period. Other Income Tax Matters The Company has $29.2 million of unrecognized tax benefits, including estimated interest and penalties, that have been recorded in other long-term liabilities in accordance with income tax accounting guidance and for which the Company is uncertain as to if or when such amounts may be settled. |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, (in thousands) 2018 2018 2017 United States $ 122,790 $ 116,169 $ 100,413 Japan 42,140 34,046 32,361 Germany 23,893 28,145 25,649 South Korea 17,471 16,682 16,672 France 14,051 14,599 12,369 Other Europe, Middle East and Africa (EMEA) 48,099 46,932 39,418 Other international 37,469 37,453 37,042 Total revenue $ 305,913 $ 294,026 $ 263,924 Six Months Ended June 30, (in thousands) 2018 2018 2017 United States $ 221,555 $ 224,755 $ 200,181 Japan 72,741 68,458 63,833 Germany 69,431 61,534 50,765 South Korea 32,525 32,237 30,341 France 30,603 30,395 24,559 Other EMEA 91,117 89,416 75,957 Other international 70,814 71,800 71,693 Total revenue $ 588,786 $ 578,595 $ 517,329 Property and equipment by geographic area is as follows: (in thousands) June 30, December 31, United States $ 43,487 $ 45,498 EMEA 6,363 5,114 India 3,320 3,704 Other international 3,331 2,780 Total property and equipment, net $ 56,501 $ 57,096 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Cost of sales: Software licenses $ — $ 321 $ — $ 571 Maintenance and service 1,432 729 2,442 1,155 Operating expenses: Selling, general and administrative 11,526 8,572 19,804 14,528 Research and development 7,677 4,500 13,658 8,381 Stock-based compensation expense before taxes 20,635 14,122 35,904 24,635 Related income tax benefits (10,396 ) (7,479 ) (21,700 ) (17,900 ) Stock-based compensation expense, net of taxes $ 10,239 $ 6,643 $ 14,204 $ 6,735 Net impact on earnings per share: Basic earnings per share $ (0.12 ) $ (0.08 ) $ (0.17 ) $ (0.08 ) Diluted earnings per share $ (0.12 ) $ (0.08 ) $ (0.17 ) $ (0.08 ) |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2018 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Under the Company's stock repurchase program, the Company repurchased shares as follows: Six Months Ended (in thousands, except per share data) June 30, June 30, Number of shares repurchased 750 2,000 Average price paid per share $ 157.11 $ 111.65 Total cost $ 117,831 $ 223,291 In February 2018, 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 June 30, 2018 , 4.8 million shares remained available for repurchase under the program. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2016, the Company initiated workforce realignment activities to reallocate resources to align with the Company's future strategic plans. The Company completed the workforce realignment activities as of September 30, 2017. The Company incurred related restructuring charges as follows: (in thousands) Gross Net of Tax Q4 2016 $ 3,419 $ 2,355 Q1 2017 9,273 6,176 Q2 2017 2,000 1,435 Q3 2017 466 331 Total restructuring charges $ 15,158 $ 10,297 The restructuring charges are included in the presentation of cost of software licenses; cost of maintenance and service; research and development expense; and selling, general and administrative expense. The gross charges were fully paid as of March 31, 2018. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2018 | |
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 has several service tax audits pending that have resulted in formal inquiries being received on transactions through mid-2012. The Company could incur tax charges and related liabilities of approximately $7.1 million . The service tax issues raised in the Company’s notices and inquiries 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 cases. The Company is uncertain as to when these service tax matters will be concluded. 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 June 30, 2018 . 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 . The condensed consolidated December 31, 2017 balance sheet presented is derived from the audited December 31, 2017 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. Certain items in the notes to the condensed consolidated financial statements of prior years have been reclassified to conform to the current year's presentation. These reclassifications had no effect on reported net income, comprehensive income, cash flows, total assets or total liabilities and stockholders' equity. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any future period. |
Changes in Accounting Policies | Changes in Accounting Policies The Company’s accounting policies are described in Note 2, “Accounting Policies,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Summarized below is the accounting guidance adopted subsequent to December 31, 2017 . Revenue from contracts with customers: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). The Company adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) effective January 1, 2018 using the modified retrospective approach. See Note 3 for the required disclosures related to the impact of adopting this standard and a discussion of the Company's updated policies related to revenue recognition. Income taxes: In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16). The Company adopted ASU 2016-16 effective January 1, 2018 using the modified retrospective approach. Previous guidance required the tax effects from intra-entity asset transfers to be deferred until the asset was sold to a third party or recovered through use. ASU 2016-16 eliminated this deferral for all intra-entity asset transfers other than inventory. The adoption of the standard did not have a material effect on the Company’s condensed consolidated financial statements. Business combinations: In January 2017, the FASB issued Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). The Company prospectively adopted ASU 2017-01 effective January 1, 2018. This standard narrows the definition of a business. If substantially all the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the acquiree is not a business. The standard also requires a business to include an input and a substantive process that significantly contributes to the ability to create outputs. This definition is expected to reduce the number of acquisitions accounted for as business combinations, which will impact the accounting treatment of certain items, including the accounting treatment of contingent consideration and transaction expenses. The acquisition of OPTIS met the definition of a business under ASU 2017-01. |
Accounting Guidance Issued and Not Yet Adopted | Accounting Guidance Issued and Not Yet Adopted 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 or leases of intangible assets, to be recorded on the balance sheet with a right-of-use asset and a 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. A modified retrospective transition is required upon adoption. The Company does not expect to early adopt and continues to evaluate the effect that this update will have on its financial results upon adoption. The Company's preliminary assessment is that this update may materially increase the Company's assets and liabilities upon adoption. The Company has completed the initial inventory of its leases and policy elections, and expects that it will primarily have operating leases. The Company is currently developing new processes and controls to meet the accounting and disclosure requirements under the new standard. Credit losses: In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The current guidance requires the allowance for doubtful accounts to be estimated based on an incurred loss model, which considers past and current conditions. ASU 2016-13 requires companies to use an expected loss model that also considers reasonable and supportable forecasts of future conditions. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that reporting period. The standard requires a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the effect that this update will have on its financial results upon adoption. |
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 funds. Cash equivalents are carried at cost, which approximates fair value. The Company’s cash and cash equivalent balances comprise the following: June 30, 2018 December 31, 2017 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 305,154 43.9 $ 568,587 64.5 Money market funds 390,740 56.1 312,914 35.5 Total $ 695,894 $ 881,501 The Company's money market fund balances are held in various funds of a single issuer. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | The Company’s cash and cash equivalent balances comprise the following: June 30, 2018 December 31, 2017 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 305,154 43.9 $ 568,587 64.5 Money market funds 390,740 56.1 312,914 35.5 Total $ 695,894 $ 881,501 |
Revenue from Contracts with C23
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Impact of ASC 606 on Condensed Consolidated Financial Statement Line Items | The following table compares the impacted assets and liabilities on the condensed consolidated balance sheet as of June 30, 2018 to the amounts had ASC 605 been in effect: June 30, 2018 (in thousands) As Reported (ASC 606) ASC 605 Change Accounts receivable, less allowance for doubtful accounts of $7,300 $ 258,280 $ 102,762 $ 155,518 Other receivables and current assets 188,542 271,059 (82,517 ) Deferred income tax assets 14,733 45,373 (30,640 ) Accrued income taxes 5,700 3,471 2,229 Other accrued expenses and liabilities 82,304 85,263 (2,959 ) Deferred revenue - current 306,879 462,575 (155,696 ) Deferred income tax liabilities 38,772 22,947 15,825 Other long-term liabilities 76,998 87,802 (10,804 ) Stockholders' equity 2,507,479 2,313,713 193,766 The Company recorded $244.1 million of deferred revenue to retained earnings upon the adoption of ASC 606 on January 1, 2018. The pattern of software lease license revenue recognition has changed under ASC 606. Software lease license revenue was recognized ratably over the term of the contract under the previous guidance; however, approximately 50% of the contract is recognized up front at the commencement of the lease under ASC 606. This change in the pattern of revenue recognition, coupled with the recording of deferred revenue to retained earnings at the adoption date, resulted in the changes to the condensed consolidated balance sheet line items as noted in the table above. The following table compares the impacted amounts on the condensed consolidated statement of income for the three and six months ended June 30, 2018 to the amounts had ASC 605 been in effect: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in thousands, except per share data) As Reported (ASC 606) ASC 605 Change As Reported (ASC 606) ASC 605 Change Revenue: Software licenses $ 131,147 $ 161,193 $ (30,046 ) $ 241,193 $ 316,050 $ (74,857 ) Maintenance and service 174,766 132,833 41,933 347,593 262,545 85,048 Cost of sales: Software licenses 4,099 8,444 (4,345 ) 8,010 16,590 (8,580 ) Maintenance and service 27,264 22,919 4,345 53,605 45,025 8,580 Income tax provision 17,126 15,423 1,703 29,884 28,404 1,480 Earnings per share: Basic $ 1.10 $ 0.98 $ 0.12 $ 2.11 $ 2.00 $ 0.11 Diluted $ 1.08 $ 0.96 $ 0.12 $ 2.06 $ 1.95 $ 0.11 The impacts to reported software licenses revenue, and maintenance and service revenue, were primarily due to the PCS portion of lease license contracts now being allocated to maintenance and service revenue under ASC 606. Under the previous guidance, this revenue was reported as software licenses revenue. This decrease to software licenses revenue was partially offset by the upfront recognition of the license component of lease revenue, which would have been recognized ratably over the contract under prior guidance. Consistent with the change in revenue, there was a corresponding reclassification within cost of sales. Costs incurred related to the PCS portion of lease license contracts were reflected in cost of maintenance and service. Under the previous guidance, such costs were reflected within cost of software licenses. |
Disaggregation of Revenue | The following tables summarize revenue: Three Months Ended June 30, (in thousands) 2018 2018 2017 Revenue: Lease licenses $ 56,821 $ 100,449 $ 92,265 Perpetual licenses 74,326 60,744 57,615 Software licenses 131,147 161,193 149,880 Maintenance 165,603 123,649 107,632 Service 9,163 9,184 6,412 Maintenance and service 174,766 132,833 114,044 Total revenue $ 305,913 $ 294,026 $ 263,924 The Company’s software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract. Under ASC 606, the Company derived 23.7% of its total revenue through the indirect sales channel for the three months ended June 30, 2018 . Under ASC 605, the Company derived 23.9% and 24.3% of its total revenue through the indirect sales channel for the three months ended June 30, 2018 and 2017, respectively. Six Months Ended June 30, (in thousands) 2018 (ASC 606) 2018 (ASC 605) 2017 (ASC 605) Revenue: Lease licenses $ 105,593 $ 202,238 $ 185,899 Perpetual licenses 135,600 113,812 105,889 Software licenses 241,193 316,050 291,788 Maintenance 329,499 244,411 212,038 Service 18,094 18,134 13,503 Maintenance and service 347,593 262,545 225,541 Total revenue $ 588,786 $ 578,595 $ 517,329 Under ASC 606, the Company derived 23.6% of its total revenue through the indirect sales channel for the six months ended June 30, 2018 . Under ASC 605, the Company derived 23.4% and 24.4% of its total revenue through the indirect sales channel for the six months ended June 30, 2018 and 2017, respectively. |
Changes in Deferred Revenue | The changes in deferred revenue, inclusive of both current and long-term, are as follows: (in thousands) Six Months Ended June 30, 2018 Beginning balance – January 1 $ 299,730 Acquired deferred revenue 2,470 Recognition of deferred revenue (588,786 ) Deferral of revenue 614,064 Currency translation (3,941 ) Ending balance – June 30 $ 323,537 |
Remaining Performance Obligations, Expected Timing of Satisfaction | Total revenue allocated to remaining performance obligations was $586.9 million as of June 30, 2018 and will be recognized as revenue as follows: (in thousands) Next 12 months $ 433,066 Months 13-24 107,578 Months 25-36 36,645 Thereafter 9,613 Total revenue allocated to remaining performance obligations $ 586,902 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Consideration Transferred | Fair Value of Consideration Transferred: (in thousands) Cash $ 290,983 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 7,957 Accounts receivable and other tangible assets 17,704 Developed software and core technologies (9 – 10 year life) 47,795 Customer lists (12 year life) 41,303 Trade names (4 – 10 year life) 10,749 Accounts payable and other liabilities (13,096 ) Deferred revenue (2,470 ) Net deferred tax liabilities (21,692 ) Total identifiable net assets $ 88,250 Goodwill $ 202,733 |
Business Acquisition, Pro Forma Information | The table presented below reflects the impact of OPTIS from the date of acquisition to June 30, 2018. The operating loss is derived from the OPTIS legal structure and does not include integration costs borne directly by ANSYS, Inc. and its non-OPTIS subsidiaries as a result of the acquisition. (in thousands) ASC 606 ASC 605 Revenue $ 3,166 $ 2,070 Operating loss $ (3,312 ) $ (4,408 ) |
Receivables, Other Current As25
Receivables, Other Current Assets and Other Accrued Expenses and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Receivables, Other Current Assets and Other Accrued Expenses and Liabilities | The Company's receivables, other current assets and other accrued expenses and liabilities comprise the following balances: (in thousands) June 30, December 31, Accounts receivable, less allowance for doubtful accounts of $7,300 and $6,800, respectively $ 258,280 $ 124,659 Receivables related to unrecognized revenue $ 116,119 $ 215,155 Income taxes receivable, including overpayments and refunds 35,615 21,663 Prepaid expenses and other current assets 36,808 27,002 Total other receivables and current assets $ 188,542 $ 263,820 Accrued vacation $ 22,108 $ 17,466 Accrued expenses and other current liabilities 60,196 68,869 Total other accrued expenses and liabilities $ 82,304 $ 86,335 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Details of Basic and Diluted EPS | The details of basic and diluted EPS are as follows: Three Months Ended Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Net income $ 92,596 $ 69,730 $ 176,876 $ 133,036 Weighted average shares outstanding – basic 84,105 85,167 84,018 85,311 Dilutive effect of stock plans 1,881 1,728 2,051 1,749 Weighted average shares outstanding – diluted 85,986 86,895 86,069 87,060 Basic earnings per share $ 1.10 $ 0.82 $ 2.11 $ 1.56 Diluted earnings per share $ 1.08 $ 0.80 $ 2.06 $ 1.53 Anti-dilutive shares — — — 154 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Developed software and core technologies (3 – 11 years) $ 411,991 $ (308,176 ) $ 365,317 $ (297,645 ) Customer lists and contract backlog (5 – 15 years) 210,118 (110,886 ) 171,048 (104,522 ) Trade names (2 – 10 years) 137,499 (111,249 ) 127,200 (104,130 ) Total $ 759,608 $ (530,311 ) $ 663,565 $ (506,297 ) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Estimated Future Amortization Expense for Intangible Assets | As of June 30, 2018 , estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) Remainder of 2018 $ 16,205 2019 31,830 2020 32,942 2021 30,140 2022 26,438 2023 23,526 Thereafter 68,216 Total intangible assets subject to amortization 229,297 Indefinite-lived trade name 357 Other intangible assets, net $ 229,654 |
Changes in Goodwill | The changes in goodwill during the six months ended June 30, 2018 and 2017 were as follows: (in thousands) 2018 2017 Beginning balance – January 1 $ 1,378,553 $ 1,337,215 Acquisitions 202,733 2,586 Currency translation and other (6,010 ) 3,167 Ending balance – June 30 $ 1,575,276 $ 1,342,968 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables provide the assets carried at fair value and measured on a recurring basis: Fair Value Measurements at Reporting Date Using: (in thousands) June 30, Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 390,740 $ 390,740 $ — $ — Short-term investments $ 269 $ — $ 269 $ — Deferred compensation plan investments $ 1,379 $ 1,379 $ — $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 312,914 $ 312,914 $ — $ — Short-term investments $ 286 $ — $ 286 $ — Deferred compensation plan investments $ 3,742 $ 3,742 $ — $ — |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segments, Geographical Areas [Abstract] | |
Revenue by Geographic Area | Revenue by geographic area is as follows: Three Months Ended June 30, (in thousands) 2018 2018 2017 United States $ 122,790 $ 116,169 $ 100,413 Japan 42,140 34,046 32,361 Germany 23,893 28,145 25,649 South Korea 17,471 16,682 16,672 France 14,051 14,599 12,369 Other Europe, Middle East and Africa (EMEA) 48,099 46,932 39,418 Other international 37,469 37,453 37,042 Total revenue $ 305,913 $ 294,026 $ 263,924 Six Months Ended June 30, (in thousands) 2018 2018 2017 United States $ 221,555 $ 224,755 $ 200,181 Japan 72,741 68,458 63,833 Germany 69,431 61,534 50,765 South Korea 32,525 32,237 30,341 France 30,603 30,395 24,559 Other EMEA 91,117 89,416 75,957 Other international 70,814 71,800 71,693 Total revenue $ 588,786 $ 578,595 $ 517,329 |
Property and Equipment by Geographic Area | Property and equipment by geographic area is as follows: (in thousands) June 30, December 31, United States $ 43,487 $ 45,498 EMEA 6,363 5,114 India 3,320 3,704 Other international 3,331 2,780 Total property and equipment, net $ 56,501 $ 57,096 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Cost of sales: Software licenses $ — $ 321 $ — $ 571 Maintenance and service 1,432 729 2,442 1,155 Operating expenses: Selling, general and administrative 11,526 8,572 19,804 14,528 Research and development 7,677 4,500 13,658 8,381 Stock-based compensation expense before taxes 20,635 14,122 35,904 24,635 Related income tax benefits (10,396 ) (7,479 ) (21,700 ) (17,900 ) Stock-based compensation expense, net of taxes $ 10,239 $ 6,643 $ 14,204 $ 6,735 Net impact on earnings per share: Basic earnings per share $ (0.12 ) $ (0.08 ) $ (0.17 ) $ (0.08 ) Diluted earnings per share $ (0.12 ) $ (0.08 ) $ (0.17 ) $ (0.08 ) |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Under the Company's stock repurchase program, the Company repurchased shares as follows: Six Months Ended (in thousands, except per share data) June 30, June 30, Number of shares repurchased 750 2,000 Average price paid per share $ 157.11 $ 111.65 Total cost $ 117,831 $ 223,291 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | The Company incurred related restructuring charges as follows: (in thousands) Gross Net of Tax Q4 2016 $ 3,419 $ 2,355 Q1 2017 9,273 6,176 Q2 2017 2,000 1,435 Q3 2017 466 331 Total restructuring charges $ 15,158 $ 10,297 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018Segment | |
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 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash accounts, Amount | $ 305,154 | $ 568,587 | ||
Money market funds, Amount | 390,740 | 312,914 | ||
Total | $ 695,894 | $ 881,501 | $ 857,996 | $ 822,479 |
Cash accounts, % of Total | 43.85% | 64.50% | ||
Money market funds, % of Total | 56.15% | 35.50% |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) | Jun. 30, 2018 | Dec. 31, 2017 |
Money Market Funds [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Revenue from Contracts with C36
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 183,100 | ||
Lease License to License Revenue | 50.00% | ||
Lease License to Maintenance Revenue | 50.00% | ||
Amount of Revenue Recognized From Beginning Deferred Revenue | $ 251,300 | ||
Revenue, Remaining Performance Obligation, Amount | $ 586,902 | ||
Minimum | Scenario, Forecast | |||
2018 Tax Payments Related to the Adoption of ASC 606 | $ 12,000 | ||
Maximum | Scenario, Forecast | |||
2018 Tax Payments Related to the Adoption of ASC 606 | $ 15,000 | ||
Gross impact | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 242,400 | ||
Deferred Revenue | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 244,100 |
Impact of ASC 606 on Condensed
Impact of ASC 606 on Condensed Consolidated Financial Statement Line Items (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accounts receivable, less allowance for doubtful accounts of $7,300 | $ 258,280 | $ 258,280 | $ 124,659 | ||
Other receivables and current assets | 188,542 | 188,542 | 263,820 | ||
Deferred income tax assets | 14,733 | 14,733 | 42,111 | ||
Accrued income taxes | 5,700 | 5,700 | 5,760 | ||
Other accrued expenses and liabilities | 82,304 | 82,304 | 86,335 | ||
Deferred revenue - current | 306,879 | 306,879 | 440,491 | ||
Deferred income tax liabilities | 38,772 | 38,772 | 1,461 | ||
Other long-term liabilities | 76,998 | 76,998 | 85,778 | ||
Stockholders' equity | 2,507,479 | 2,507,479 | $ 2,245,831 | ||
Total revenue | 305,913 | $ 263,924 | 588,786 | $ 517,329 | |
Total cost of sales | 40,450 | 36,338 | 79,488 | 73,369 | |
Income tax provision | $ 17,126 | $ 30,142 | $ 29,884 | $ 52,403 | |
Basic earnings per share | $ 1.10 | $ 0.82 | $ 2.11 | $ 1.56 | |
Diluted earnings per share | $ 1.08 | $ 0.80 | $ 2.06 | $ 1.53 | |
Accounting Standards Update 2014-09 | |||||
Accounts receivable, less allowance for doubtful accounts of $7,300 | $ 155,518 | $ 155,518 | |||
Other receivables and current assets | (82,517) | (82,517) | |||
Deferred income tax assets | (30,640) | (30,640) | |||
Accrued income taxes | 2,229 | 2,229 | |||
Other accrued expenses and liabilities | (2,959) | (2,959) | |||
Deferred revenue - current | (155,696) | (155,696) | |||
Deferred income tax liabilities | 15,825 | 15,825 | |||
Other long-term liabilities | (10,804) | (10,804) | |||
Stockholders' equity | 193,766 | 193,766 | |||
Income tax provision | $ 1,703 | $ 1,480 | |||
Basic earnings per share | $ 0.12 | $ 0.11 | |||
Diluted earnings per share | $ 0.12 | $ 0.11 | |||
Software licenses | |||||
Total revenue | $ 131,147 | $ 149,880 | $ 241,193 | $ 291,788 | |
Total cost of sales | 4,099 | 7,525 | 8,010 | 16,802 | |
Software licenses | Accounting Standards Update 2014-09 | |||||
Total revenue | (30,046) | (74,857) | |||
Total cost of sales | (4,345) | (8,580) | |||
Maintenance and service | |||||
Total revenue | 174,766 | 114,044 | 347,593 | 225,541 | |
Total cost of sales | 27,264 | $ 19,861 | 53,605 | $ 38,679 | |
Maintenance and service | Accounting Standards Update 2014-09 | |||||
Total revenue | 41,933 | 85,048 | |||
Total cost of sales | 4,345 | 8,580 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||
Accounts receivable, less allowance for doubtful accounts of $7,300 | 102,762 | 102,762 | |||
Other receivables and current assets | 271,059 | 271,059 | |||
Deferred income tax assets | 45,373 | 45,373 | |||
Accrued income taxes | 3,471 | 3,471 | |||
Other accrued expenses and liabilities | 85,263 | 85,263 | |||
Deferred revenue - current | 462,575 | 462,575 | |||
Deferred income tax liabilities | 22,947 | 22,947 | |||
Other long-term liabilities | 87,802 | 87,802 | |||
Stockholders' equity | 2,313,713 | 2,313,713 | |||
Total revenue | 294,026 | 578,595 | |||
Income tax provision | $ 15,423 | $ 28,404 | |||
Basic earnings per share | $ 0.98 | $ 2 | |||
Diluted earnings per share | $ 0.96 | $ 1.95 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Software licenses | |||||
Total revenue | $ 161,193 | $ 316,050 | |||
Total cost of sales | 8,444 | 16,590 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Maintenance and service | |||||
Total revenue | 132,833 | 262,545 | |||
Total cost of sales | $ 22,919 | $ 45,025 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Indirect Sales Channel Revenue | 23.65% | 24.30% | 23.57% | 24.40% |
Total revenue | $ 305,913 | $ 263,924 | $ 588,786 | $ 517,329 |
Lease license | ||||
Total revenue | 56,821 | 92,265 | 105,593 | 185,899 |
Perpetual license | ||||
Total revenue | 74,326 | 57,615 | 135,600 | 105,889 |
Software licenses | ||||
Total revenue | 131,147 | 149,880 | 241,193 | 291,788 |
Maintenance | ||||
Total revenue | 165,603 | 107,632 | 329,499 | 212,038 |
Service | ||||
Total revenue | 9,163 | 6,412 | 18,094 | 13,503 |
Maintenance and service | ||||
Total revenue | $ 174,766 | $ 114,044 | $ 347,593 | $ 225,541 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Indirect Sales Channel Revenue | 23.90% | 23.40% | ||
Total revenue | $ 294,026 | $ 578,595 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Lease license | ||||
Total revenue | 100,449 | 202,238 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Perpetual license | ||||
Total revenue | 60,744 | 113,812 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Software licenses | ||||
Total revenue | 161,193 | 316,050 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Maintenance | ||||
Total revenue | 123,649 | 244,411 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Service | ||||
Total revenue | 9,184 | 18,134 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Maintenance and service | ||||
Total revenue | $ 132,833 | $ 262,545 |
Changes in Deferred Revenue (De
Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | May 02, 2018 | |
Movement in Deferred Revenue [Roll Forward] | |||||
Acquired deferred revenue | $ 2,470 | ||||
Recognition of deferred revenue | $ (305,913) | $ (263,924) | $ (588,786) | $ (517,329) | |
Deferral of revenue | 614,064 | ||||
Currency translation | (3,941) | ||||
Ending balance | $ 323,537 | 323,537 | |||
Balance at January 1st after ASC 606 Adoption | |||||
Movement in Deferred Revenue [Roll Forward] | |||||
Beginning balance | $ 299,730 |
Remaining Performance Obligatio
Remaining Performance Obligations, Expected Timing of Satisfaction (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 586,902 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 433,066 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 107,578 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 36,645 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 9,613 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 38 months |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | May 02, 2018 | Jun. 30, 2018 |
Percentage of Shares Acquired | 100.00% | |
Business Combination, Consideration Transferred | $ 290,983 | |
Business Combination, Historical Carrying Value of Acquired Deferred Revenue | 14,200 | |
Deferred revenue | 2,470 | |
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination | $ 2,800 | |
Business Acquisition Write Down of Deferred Revenue Expected Impact on Revenue Next Quarter | 3,500 | |
Business Acquisition Write Down of Deferred Revenue Expected Impact on Revenue for Fiscal Year | 8,800 | |
Previous Accounting Guidance | ||
Business Combination, Historical Carrying Value of Acquired Deferred Revenue | $ 22,300 | |
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination | 4,500 | |
Business Acquisition Write Down of Deferred Revenue Expected Impact on Revenue Next Quarter | 5,800 | |
Business Acquisition Write Down of Deferred Revenue Expected Impact on Revenue for Fiscal Year | $ 14,500 |
Consideration Transferred (Deta
Consideration Transferred (Details) $ in Thousands | May 02, 2018USD ($) |
Cash | $ 290,983 |
Recognized Amounts of Identifia
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | May 02, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Cash | $ 7,957 | ||||
Accounts receivable and other tangible assets | 17,704 | ||||
Accounts payable and other liabilities | (13,096) | ||||
Deferred revenue | (2,470) | ||||
Net deferred tax liabilities | (21,692) | ||||
Total identifiable net assets | 88,250 | ||||
Goodwill | $ 1,575,276 | $ 1,378,553 | $ 1,342,968 | $ 1,337,215 | |
Developed Software and Core Technologies | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Finite-lived intangible assets | 47,795 | ||||
Customer Lists and Contract Backlog | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Finite-lived intangible assets | 41,303 | ||||
Trade names | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Finite-lived intangible assets | 10,749 | ||||
OPTIS | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Goodwill | $ 202,733 |
Estimated Useful Lives (Details
Estimated Useful Lives (Details) | May 02, 2018 | Jun. 30, 2018 |
Customer Lists and Contract Backlog | ||
Finite-lived intangible asset, useful life | 12 years | |
Minimum | Developed Software and Core Technologies | ||
Finite-lived intangible asset, useful life | 9 years | 3 years |
Minimum | Customer Lists and Contract Backlog | ||
Finite-lived intangible asset, useful life | 5 years | |
Minimum | Trade names | ||
Finite-lived intangible asset, useful life | 4 years | 2 years |
Maximum | Developed Software and Core Technologies | ||
Finite-lived intangible asset, useful life | 10 years | 11 years |
Maximum | Customer Lists and Contract Backlog | ||
Finite-lived intangible asset, useful life | 15 years | |
Maximum | Trade names | ||
Finite-lived intangible asset, useful life | 10 years | 10 years |
Pro Forma Information (Details)
Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | $ 305,913 | $ 263,924 | $ 588,786 | $ 517,329 |
Operating loss | $ 108,553 | $ 98,394 | 203,614 | $ 183,866 |
OPTIS | ||||
Revenue | 3,166 | |||
Operating loss | (3,312) | |||
Previous Accounting Guidance | OPTIS | ||||
Revenue | 2,070 | |||
Operating loss | $ (4,408) |
Schedule of Receivables, Other
Schedule of Receivables, Other Current Assets and Other Accrued Expenses and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts receivable, less allowance for doubtful accounts of $7,300 and $6,800, respectively | $ 258,280 | $ 124,659 |
Other receivables and current assets | 188,542 | 263,820 |
Accrued vacation | 22,108 | 17,466 |
Other accrued expenses and liabilities | 82,304 | 86,335 |
Deferred Accounts Receivable Current Portion Of Lease Licenses And Software Maintenance [Member] | ||
Other receivables and current assets | 116,119 | 215,155 |
Taxes Receivable Related To Overpayments And Refunds [Member] | ||
Other receivables and current assets | 35,615 | 21,663 |
Prepaid Expenses and Other Current Assets [Member] | ||
Other receivables and current assets | 36,808 | 27,002 |
Accrued Liabilities [Member] | ||
Other accrued expenses and liabilities | $ 60,196 | $ 68,869 |
Receivables, Other Current As47
Receivables, Other Current Assets and Other Accrued Expenses and Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, less allowance for doubtful accounts of $7,300 and $6,800, respectively | $ 258,280 | $ 124,659 | |
Other receivables and current assets | 188,542 | 263,820 | |
Balance at January 1st after ASC 606 Adoption | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable, less allowance for doubtful accounts of $7,300 and $6,800, respectively | $ 278,800 | ||
Deferred Accounts Receivable Current Portion Of Lease Licenses And Software Maintenance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other receivables and current assets | $ 116,119 | $ 215,155 | |
Deferred Accounts Receivable Current Portion Of Lease Licenses And Software Maintenance [Member] | Balance at January 1st after ASC 606 Adoption | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other receivables and current assets | $ 136,400 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 92,596 | $ 69,730 | $ 176,876 | $ 133,036 |
Weighted average shares outstanding - basic | 84,105 | 85,167 | 84,018 | 85,311 |
Dilutive effect of stock plans | 1,881 | 1,728 | 2,051 | 1,749 |
Weighted average shares outstanding - diluted | 85,986 | 86,895 | 86,069 | 87,060 |
Basic earnings per share | $ 1.10 | $ 0.82 | $ 2.11 | $ 1.56 |
Diluted earnings per share | $ 1.08 | $ 0.80 | $ 2.06 | $ 1.53 |
Anti-dilutive shares | 0 | 0 | 0 | 154 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 759,608 | $ 663,565 |
Amortized intangible assets, accumulated amortization | (530,311) | (506,297) |
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 | 411,991 | 365,317 |
Amortized intangible assets, accumulated amortization | (308,176) | (297,645) |
Customer Lists and Contract Backlog | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 210,118 | 171,048 |
Amortized intangible assets, accumulated amortization | (110,886) | (104,522) |
Trade names | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 137,499 | 127,200 |
Amortized intangible assets, accumulated amortization | $ (111,249) | $ (104,130) |
Estimated Useful Lives (Detail)
Estimated Useful Lives (Detail) | May 02, 2018 | Jun. 30, 2018 |
Customer Lists and Contract Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 12 years | |
Minimum | Developed Software and Core Technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 9 years | 3 years |
Minimum | Customer Lists and Contract Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 5 years | |
Minimum | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 4 years | 2 years |
Maximum | Developed Software and Core Technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | 11 years |
Maximum | Customer Lists and Contract Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Maximum | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | 10 years |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 12,582 | $ 12,091 | $ 24,803 | $ 24,134 |
Estimated Future Amortization E
Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2018 | $ 16,205 | |
2,019 | 31,830 | |
2,020 | 32,942 | |
2,021 | 30,140 | |
2,022 | 26,438 | |
2,023 | 23,526 | |
Thereafter | 68,216 | |
Total intangible assets subject to amortization | 229,297 | |
Indefinite-lived intangible assets (excluding goodwill) | 357 | |
Other intangible assets, net | $ 229,654 | $ 157,625 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,378,553 | $ 1,337,215 |
Acquisitions | 202,733 | 2,586 |
Currency translation and other | (6,010) | 3,167 |
Ending balance | $ 1,575,276 | $ 1,342,968 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 390,740 | $ 312,914 |
Short-term investments | 269 | 286 |
Deferred compensation plan investments | 1,379 | 3,742 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 390,740 | 312,914 |
Short-term investments | 0 | 0 |
Deferred compensation plan investments | 1,379 | 3,742 |
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 | 269 | 286 |
Deferred compensation plan investments | 0 | 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 |
Deferred compensation plan investments | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments maturity | 3 months |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments maturity | 1 year |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Transition Tax, Amount | $ 1,400 | $ 17,400 | $ 16,000 | |
Accrued Income Taxes, Noncurrent | $ 14,300 | 14,300 | ||
Foreign Earnings Repatriated | 144,300 | |||
Unrecognized Tax Benefits | $ 29,200 | $ 29,200 |
Revenue by Geographic Area (Det
Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 305,913 | $ 263,924 | $ 588,786 | $ 517,329 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 122,790 | 100,413 | 221,555 | 200,181 |
Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 42,140 | 32,361 | 72,741 | 63,833 |
Germany | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 23,893 | 25,649 | 69,431 | 50,765 |
South Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 17,471 | 16,672 | 32,525 | 30,341 |
France | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 14,051 | 12,369 | 30,603 | 24,559 |
Other EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 48,099 | 39,418 | 91,117 | 75,957 |
Other international | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 37,469 | $ 37,042 | 70,814 | $ 71,693 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 294,026 | 578,595 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 116,169 | 224,755 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 34,046 | 68,458 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Germany | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 28,145 | 61,534 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | South Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 16,682 | 32,237 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | France | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 14,599 | 30,395 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Other EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 46,932 | 89,416 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Other international | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 37,453 | $ 71,800 |
Property and Equipment by Geogr
Property and Equipment by Geographic Area (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 56,501 | $ 57,096 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 43,487 | 45,498 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 6,363 | 5,114 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 3,320 | 3,704 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 3,331 | $ 2,780 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 20,635 | $ 14,122 | $ 35,904 | $ 24,635 |
Related income tax benefits | (10,396) | (7,479) | (21,700) | (17,900) |
Stock-based compensation expense, net of taxes | $ 10,239 | $ 6,643 | $ 14,204 | $ 6,735 |
Basic earnings per share | $ (0.12) | $ (0.08) | $ (0.17) | $ (0.08) |
Diluted earnings per share | $ (0.12) | $ (0.08) | $ (0.17) | $ (0.08) |
Software Licenses | ||||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 0 | $ 321 | $ 0 | $ 571 |
Maintenance and Service | ||||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | 1,432 | 729 | 2,442 | 1,155 |
Selling, General and Administrative | ||||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | 11,526 | 8,572 | 19,804 | 14,528 |
Research and Development | ||||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 7,677 | $ 4,500 | $ 13,658 | $ 8,381 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Class of Stock Disclosures [Abstract] | ||
Number of shares repurchased | 750 | 2,000 |
Average price paid per share | $ 157.11 | $ 111.65 |
Total cost | $ 117,831 | $ 223,291 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) shares in Thousands | Jun. 30, 2018shares |
Class of Stock Disclosures [Abstract] | |
Stock repurchase program, repurchase authorization | 5,000 |
Stock repurchase program, remaining number of shares authorized to be repurchased | 4,750 |
Restructuring (Detail)
Restructuring (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 331 | $ 1,435 | $ 6,176 | $ 2,355 | $ 10,297 |
Operating Income (Loss) [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 466 | $ 2,000 | $ 9,273 | $ 3,419 | $ 15,158 |
Contingencies and Commitments -
Contingencies and Commitments - Additional Information (Detail) $ in Millions | Jun. 30, 2018USD ($) |
India Service Tax Audit [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 7.1 |