Document
Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-20853 | ||
Entity Registrant Name | ANSYS, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-3219960 | ||
Entity Address, Address Line One | 2600 ANSYS Drive, | ||
Entity Address, City or Town | Canonsburg, | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15317 | ||
City Area Code | 844 | ||
Local Phone Number | 462-6797 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14,436,000,000 | ||
Entity Common Stock, Shares Outstanding | 85,914,375 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001013462 | ||
Current Fiscal Year End Date | --12-31 | ||
Nasdaq Stock Market LLC | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | ANSS | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 872,094 | $ 777,139 |
Short-term investments | 288 | 225 |
Accounts receivable, less allowance for doubtful accounts of $8,700 and $8,000, respectively | 433,479 | 317,700 |
Other receivables and current assets | 249,619 | 216,113 |
Total current assets | 1,555,480 | 1,311,177 |
Long-term assets: | ||
Property and equipment, net | 83,636 | 61,655 |
Operating lease right-of-use assets | 105,671 | |
Goodwill | 2,413,280 | 1,572,455 |
Other intangible assets, net | 476,711 | 211,272 |
Other long-term assets | 180,032 | 82,775 |
Deferred income taxes | 24,077 | 26,630 |
Total long-term assets | 3,283,407 | 1,954,787 |
Total assets | 4,838,887 | 3,265,964 |
Current liabilities: | ||
Accounts payable | 14,298 | 7,953 |
Accrued bonuses and commissions | 101,546 | 79,945 |
Accrued income taxes | 9,996 | 8,726 |
Current portion of long-term debt | 75,000 | 0 |
Other accrued expenses and liabilities | 142,947 | 99,559 |
Deferred revenue | 351,353 | 328,584 |
Total current liabilities | 695,140 | 524,767 |
Long-term liabilities: | ||
Deferred income taxes | 78,643 | 30,077 |
Long-term operating lease liabilities | 91,768 | |
Long-term debt | 423,531 | 0 |
Other long-term liabilities | 96,426 | 61,573 |
Total long-term liabilities | 690,368 | 91,650 |
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; 94,627,585 and 93,236,023 shares issued, respectively | 946 | 932 |
Additional paid-in capital | 1,188,939 | 867,462 |
Retained earnings | 3,370,706 | 2,919,411 |
Treasury stock, at cost: 8,893,177 and 9,601,670 shares, respectively | (1,041,831) | (1,075,879) |
Accumulated other comprehensive loss | (65,381) | (62,379) |
Total stockholders’ equity | 3,453,379 | 2,649,547 |
Total liabilities and stockholders’ equity | $ 4,838,887 | $ 3,265,964 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 8,700 | $ 8,000 |
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 | 94,627,585 | 93,236,023 |
Treasury stock, shares | 8,893,177 | 9,601,670 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Total revenue | $ 1,515,892 | $ 1,293,636 | $ 1,095,250 |
Cost of sales: | |||
Amortization | 21,710 | 27,034 | 36,794 |
Total cost of sales | 166,273 | 155,885 | 150,164 |
Gross profit | 1,349,619 | 1,137,751 | 945,086 |
Operating expenses: | |||
Selling, general and administrative | 521,200 | 413,580 | 338,640 |
Research and development | 298,210 | 233,802 | 202,746 |
Amortization | 15,169 | 13,795 | 12,972 |
Total operating expenses | 834,579 | 661,177 | 554,358 |
Operating income | 515,040 | 476,574 | 390,728 |
Interest income | 12,796 | 11,419 | 6,962 |
Interest expense | (3,461) | (59) | (86) |
Other expense, net | (1,792) | (849) | (1,910) |
Income before income tax provision | 522,583 | 487,085 | 395,694 |
Income tax provision | 71,288 | 67,710 | 136,443 |
Net income | $ 451,295 | $ 419,375 | $ 259,251 |
Earnings per share – basic: | |||
Earnings per share | $ 5.36 | $ 4.99 | $ 3.05 |
Weighted average shares | 84,259 | 83,973 | 84,988 |
Earnings per share – diluted: | |||
Earnings per share | $ 5.25 | $ 4.88 | $ 2.98 |
Weighted average shares | 85,925 | 85,913 | 86,854 |
Software licenses | |||
Revenue: | |||
Total revenue | $ 699,630 | $ 576,717 | $ 624,964 |
Cost of sales: | |||
Total cost of sales | 23,944 | 18,619 | 34,421 |
Maintenance and service | |||
Revenue: | |||
Total revenue | 816,262 | 716,919 | 470,286 |
Cost of sales: | |||
Total cost of sales | $ 120,619 | $ 110,232 | $ 78,949 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 451,295 | $ 419,375 | $ 259,251 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (3,002) | (24,535) | 19,808 |
Comprehensive income | $ 448,293 | $ 394,840 | $ 279,059 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 451,295 | $ 419,375 | $ 259,251 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 60,516 | 59,255 | 67,678 |
Operating lease right-of-use assets amortization | 18,459 | ||
Deferred income tax benefit | (14,511) | (33,675) | (2,693) |
Provision for bad debts | 2,928 | 1,577 | 1,474 |
Stock-based compensation expense | 116,190 | 83,346 | 53,154 |
Other | 2,778 | 410 | 21 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (154,403) | (74,455) | (14,406) |
Other receivables and current assets | (26,182) | (30,241) | (18,498) |
Other long-term assets | (5,622) | 1,839 | (435) |
Accounts payable, accrued expenses and current liabilities | 38,543 | 19,920 | 27,045 |
Accrued income taxes | 575 | 1,086 | 1,215 |
Deferred revenue | 17,245 | 56,213 | 20,648 |
Other long-term liabilities | (7,875) | (19,662) | 33,206 |
Net cash provided by operating activities | 499,936 | 484,988 | 427,660 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (787,196) | (283,026) | (63,885) |
Capital expenditures | (44,940) | (21,762) | (19,149) |
Other investing activities | (1,412) | (7,443) | (11,631) |
Net cash used in investing activities | (833,548) | (312,231) | (94,665) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 500,000 | 0 | 0 |
Purchase of treasury stock | (59,116) | (269,801) | (336,042) |
Restricted stock withholding taxes paid in lieu of issued shares | (42,431) | (28,879) | (11,112) |
Proceeds from shares issued for stock-based compensation | 34,093 | 41,019 | 52,503 |
Other financing activities | (3,137) | (5,014) | 0 |
Net cash provided by (used in) financing activities | 429,409 | (262,675) | (294,651) |
Effect of exchange rate fluctuations on cash and cash equivalents | (842) | (14,444) | 20,678 |
Net increase (decrease) in cash and cash equivalents | 94,955 | (104,362) | 59,022 |
Cash and cash equivalents, beginning of period | 777,139 | 881,501 | 822,479 |
Cash and cash equivalents, end of period | 872,094 | 777,139 | 881,501 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 86,770 | 87,244 | 116,389 |
Interest paid | 787 | 114 | 199 |
Fair value of common stock issued as consideration in connection with acquisitions | $ 307,173 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance at Dec. 31, 2016 | $ 2,208,405 | $ 932 | $ 883,010 | $ 2,057,665 | $ (675,550) | $ (57,652) |
Beginning balance, shares at Dec. 31, 2016 | 93,236 | 7,548 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares acquired | $ (336,042) | $ (336,042) | ||||
Treasury shares acquired, shares | 2,750 | 2,750 | ||||
Stock-based compensation, activity | (9,653) | |||||
Stock-based compensation activity | $ 94,409 | $ 104,062 | ||||
Stock-based compensation activity, shares | (1,254) | |||||
Other comprehensive (loss)/income | 19,808 | 19,808 | ||||
Net income for the year | 259,251 | 259,251 | ||||
Ending balance at Dec. 31, 2017 | 2,245,831 | $ 932 | 873,357 | 2,316,916 | $ (907,530) | (37,844) |
Ending balance, shares at Dec. 31, 2017 | 93,236 | 9,044 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares acquired | $ (269,801) | $ (269,801) | ||||
Treasury shares acquired, shares | 1,674 | 1,674 | ||||
Stock-based compensation, activity | (5,895) | |||||
Stock-based compensation activity | $ 95,557 | $ 101,452 | ||||
Stock-based compensation activity, shares | (1,116) | |||||
Other comprehensive (loss)/income | (24,535) | (24,535) | ||||
Net income for the year | 419,375 | 419,375 | ||||
Ending balance at Dec. 31, 2018 | 2,649,547 | $ 932 | 867,462 | 2,919,411 | $ (1,075,879) | (62,379) |
Ending balance, shares at Dec. 31, 2018 | 93,236 | 9,602 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Acquisition of Livermore Software Technology, LLC | 307,173 | $ 14 | 307,159 | |||
Acquisition of Livermore Software Technology, LLC, shares | 1,392 | |||||
Treasury shares acquired | $ (59,116) | $ (59,116) | ||||
Treasury shares acquired, shares | 330 | 330 | ||||
Stock-based compensation, activity | 14,318 | |||||
Stock-based compensation activity | $ 107,482 | $ 93,164 | ||||
Stock-based compensation activity, shares | (1,039) | |||||
Other comprehensive (loss)/income | (3,002) | (3,002) | ||||
Net income for the year | 451,295 | 451,295 | ||||
Ending balance at Dec. 31, 2019 | $ 3,453,379 | $ 946 | $ 1,188,939 | $ 3,370,706 | $ (1,041,831) | $ (65,381) |
Ending balance, shares at Dec. 31, 2019 | 94,628 | 8,893 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization We develop and globally market 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, we operate as one segment. Given the integrated approach to the multi-discipline problem-solving needs of our customers, a single sale of software may contain components from multiple product areas and include combined technologies. We also have 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 us to provide accurate historical or current reporting among our various product lines. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Accounting Principles The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States. Certain items in the consolidated financial statements and the notes to the 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. Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Recently Adopted Accounting Guidance Leases: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (ASU 2016-02). We adopted ASU 2016-02 and its related amendments (collectively known as Accounting Standards Codification (ASC) 842) on January 1, 2019 using the modified retrospective approach. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 840, Leases . ASC 842 requires virtually all leases, other than leases of intangible assets, to be recorded on the balance sheet with a right-of-use (ROU) asset and a corresponding lease liability. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward our historical assessments of whether a contract contains a lease, lease classification and initial direct costs. In addition, we elected the accounting policy to combine the lease and nonlease components as a single component for all asset classes. We determine if an arrangement is a lease at inception. Leases are classified as either operating or finance leases based on certain criteria. This classification determines the timing and presentation of expenses on the income statement, as well as the presentation of the related cash flows and balance sheet. Operating leases are recorded on the balance sheet as operating lease right-of-use assets, other accrued expenses and liabilities, and long-term operating lease liabilities. We currently have no finance leases. ROU assets and related liabilities are recorded at lease commencement based on the present value of the lease payments over the expected lease term. Lease payments include future increases unless the increases are based on changes in an index or rate. As our leases do not usually provide an implicit rate, our incremental borrowing rate is used to calculate ROU assets and related liabilities. The incremental borrowing rate is determined based on our estimated credit rating, the term of the lease, the economic environment where the asset resides and full collateralization. The ROU assets and related lease liabilities include optional renewals for which we are reasonably certain to exercise; whereas, optional terminations are included unless it is reasonably certain not to be elected. The adoption of the new standard resulted in the recognition of ROU assets of $90.9 million and lease liabilities of $92.5 million , and corresponding deferred tax assets and liabilities, on our consolidated balance sheet as of January 1, 2019. The adoption had no impact on our consolidated statements of income or cash flows. Implementation cost accounting for cloud computing arrangements: In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). The standard aligns the accounting for costs incurred to implement a cloud computing arrangement (CCA) that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Under ASU 2018-15, an entity would apply Subtopic 350-40 to determine which implementation costs related to a CCA that is a service contract should be capitalized. The standard does not change the accounting for the service component of a CCA. The associated cash flows will be reflected within operating activities. We retrospectively adopted the guidance during the quarter ended December 31, 2019. The adoption resulted in the reclassification of cash flows associated with implementation costs related to CCAs that are service contracts on our consolidated statements of cash flows. This resulted in a decrease to operating cash flows, and a corresponding increase to investing cash flows, of $2.5 million , $1.4 million and $2.8 million for the years ending December 31, 2019, 2018 and 2017, respectively. The adoption had no impact on our consolidated balance sheets or consolidated statements of income. Accounting Guidance Issued and Not Yet Adopted Credit losses: In June 2016, the FASB issued ASU 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. We will adopt the standard effective January 1, 2020 and do not expect the adoption of the new standard to have a material effect on our consolidated financial statements. Income taxes: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. We are currently evaluating the impact that this guidance will have upon our financial position and results of operations, if any. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the amounts of revenue and expenses during the reported periods. Significant estimates included in these consolidated financial statements include: • Allowances for doubtful accounts receivable • Income tax accruals, including those related to the Tax Cuts and Jobs Act • Uncertain tax positions • Tax valuation reserves • Fair value of stock-based compensation and probabilities of performance award attainment • Contract revenue • Standalone selling prices of our products and services • Acquired deferred revenue • Useful lives for depreciation and amortization • Valuations of goodwill and other intangible assets • Deferred compensation • Loss contingencies • Operating lease assets and liabilities Actual results could differ from these estimates. Changes in estimates are recorded in the results of operations in the period that the changes occur. Revenue Recognition Our revenue is derived principally from the licensing of computer software products and from related maintenance contracts. We adopted ASC 606 on January 1, 2018. 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. Revenue Recognition Policy 2019 and 2018 (ASC 606) We enter 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/or the utility that enables the customer to access authorization keys, provided that an enforceable contract has been received. Typically, our perpetual licenses are sold with post-contract support (PCS), which includes unspecified technical enhancements and customer support. We allocate 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 we satisfy the PCS performance obligation over time. In addition to perpetual licenses, we sell time-based lease licenses. Lease licenses are sold only as a bundled arrangement that includes the rights to a term software license and PCS. Utilizing observable inputs, we 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. This determination considered the value relationship for our products between PCS to time-based lease licenses, the value relationship between PCS and perpetual licenses, the average economic life of our products, software renewal rates and the price of the bundled arrangement in relation to the perpetual licensing approach. 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 upon delivery of the licensed product and/or utility that enables the customer to access authorization keys. The PCS is classified as maintenance revenue and is recognized ratably over the term of the contract, as we satisfy the PCS performance obligation 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, we recognize 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), we measure the progress toward completion of the obligations and recognize revenue accordingly. In measuring progress towards the completion of performance obligations, we typically utilize output-based estimates for services with contractual billing arrangements that are not based on time and materials, and estimate 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. Proceeds from customers for the purpose of expediting road-map items, developing new products or creating specific features and functionality for existing products is classified as revenue. We also execute arrangements through independent channel partners in which the channel partners are authorized to market and distribute our software products to end users of our 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. We recognize revenue from transactions with channel partners in a manner consistent with the direct sales described above for both perpetual and time-based licenses. Revenue from channel partner transactions is the amount remitted to us 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. Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the consolidated balance sheet as accounts receivable and accrued expenses. The collection and payment of these amounts are reported on a net basis in the consolidated statements of income and do not impact reported revenues or expenses. We do not offer right of return. We warrant to our customers that our software will perform substantially as specified in our current user manuals. We have not experienced significant claims related to software warranties beyond the scope of maintenance support, which we are 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 us. Our agreements with our customers generally require us to indemnify the customer against claims that our software infringes third-party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard respects, including our right to replace an infringing product. Significant Judgments (ASC 606) Our 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, to allocate the transaction price to each performance obligation. We use the estimated standalone selling price method to allocate the transaction price for each performance obligation. The estimated standalone selling price is determined using all information reasonably available to us, including market conditions and other observable inputs. The corresponding revenues are recognized as the related performance obligations are satisfied. We apply a practical expedient to expense sales commissions as incurred when the amortization period would have been one year or less. Sales commissions associated with the initial year of multi-year contracts are expensed as incurred due to their immateriality. Sales commissions associated with multi-year contracts beyond the initial year are subject to an employee service requirement and are expensed as incurred as they are not considered incremental costs to obtain a contract. We are 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 us with a significant financing benefit. We consider various factors in assessing whether a financing component exists, including the duration of the contract, market interest rates and the timing of payments. Our contracts do not include a significant financing component requiring adjustment to the transaction price. Revenue Recognition Policy 2017 (ASC 605) Revenue from perpetual licenses was classified as license revenue and was recognized upon delivery of the licensed product and/or the utility that enabled the customer to access authorization keys, provided that acceptance had occurred and a signed contractual obligation was received, the price was fixed and determinable, and collectibility of the receivable was probable. We determined the fair value of PCS sold together with perpetual licenses based on the rate charged for PCS when sold separately. Revenue from PCS contracts was classified as maintenance and service revenue and was recognized ratably over the term of the contract. Revenue for software lease licenses was classified as license revenue and was recognized over the period of the lease contract. Typically, our software leases include PCS which, due to the short term (principally one year or less) of our software lease licenses, were not permitted to be separated from lease revenue for accounting purposes. As a result, both the lease licenses and PCS were recognized ratably over the lease period. We included the revenue for the entire lease arrangement within software license revenue in the consolidated statements of income. Many of our semiconductor products are typically licensed via longer term leases of 24 – 36 months. We recognized revenue for these licenses over the term of the lease contract. Because we did not have vendor-specific objective evidence of the fair value of these leases, we also recognized revenue from perpetual licenses over the term of the lease contract during the infrequent occurrence of these licenses being sold with semiconductor leases in multiple-element arrangements. Revenue from training, support and other services was recognized as the services were performed. We applied the specific performance method to contracts in which the service consisted of a single act, such as providing a training class to a customer, and the proportional performance method to other service contracts that were longer in duration and often included multiple acts (for example, both training and consulting). In applying the proportional performance method, we typically utilized output-based estimates for services with contractual billing arrangements that were not based on time and materials, and estimated output based on the total tasks completed as compared to the total tasks required for each work contract. Input-based estimates were utilized for services that involved general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure. The accounting treatment under ASC 605 associated with arrangements through independent channel partners, non-income related taxes, warranties and indemnification obligations is consistent with the accounting treatment under ASC 606 described above. 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. Our cash and cash equivalents balances comprise the following: December 31, 2019 December 31, 2018 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 549,639 63.0 $ 331,084 42.6 Money market funds 322,455 37.0 446,055 57.4 Total $ 872,094 $ 777,139 Our money market fund balances are held in various funds of a single issuer. Property and Equipment Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of assets, which range from one year to forty years . Repairs and maintenance are charged to expense as incurred. Gains or losses from the sale or retirement of property and equipment are included in operating income. Research and Development Research and development costs are expensed as incurred. Internally developed software costs required to be capitalized as defined by the accounting guidance are not material to our consolidated financial statements. Business Combinations When we consummate an acquisition, the assets acquired and the liabilities assumed are recognized separately from goodwill at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of the fair value of consideration transferred over the acquisition date fair value of the net identifiable assets acquired. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as we obtain new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Upon the earlier of the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, any subsequent adjustments are recorded in the consolidated statements of income. Goodwill and Other Intangible Assets Goodwill represents the excess of the fair value of consideration transferred over the fair value of net identifiable assets acquired. Other intangible assets consist of trade names, customer lists, contract backlog and acquired software and technology. Intangible assets that are not considered to have an indefinite useful life are amortized over their useful lives, which range from two years to seventeen years . Amortization expense for intangible assets was $36.9 million , $40.8 million and $49.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. We test goodwill and indefinite-lived intangible assets for impairment at least annually by performing a quantitative assessment of whether the fair value of each reporting unit or asset exceeds its carrying amount. We have one reporting unit. Goodwill is tested at this reporting unit level and indefinite-lived intangible assets are tested at the individual asset level. This requires us to assess and make judgments regarding a variety of factors which impact the fair value of the reporting unit or asset being tested, including business plans, anticipated future cash flows, economic projections and other market data. We perform our annual impairment tests for goodwill and indefinite-lived intangible assets as of January 1 of each year unless there is an indicator that would require a test during the year. We periodically review the carrying value of other intangible assets and will recognize impairments when events or circumstances indicate that such assets may be impaired. Concentrations of Credit Risk We have a concentration of credit risk with respect to revenue and trade receivables due to the use of certain significant channel partners to market and sell our products. We perform periodic credit evaluations of our customers' financial condition and generally do not require collateral. The following table outlines concentrations of risk with respect to our revenue: Year Ended December 31, (as a % of revenue) 2019 2018 2017 Revenue from channel partners 23 % 22 % 25 % Largest channel partner 4 % 4 % 5 % 2 nd largest channel partner 2 % 2 % 2 % No single customer accounted for more than 5% of our revenue in 2019 , 2018 or 2017 . In addition to the concentration of credit risk with respect to trade receivables, our cash and cash equivalents are also exposed to concentration risk. Our cash and cash equivalent accounts are insured through various public and private bank deposit insurance programs, foreign and domestic; however, a significant portion of our funds are not insured. The following table outlines concentrations of risk with respect to our cash and cash equivalents: As of December 31, (in thousands) 2019 2018 Cash and cash equivalents held domestically $ 626,433 $ 616,249 Cash and cash equivalents held by foreign subsidiaries 245,661 160,890 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 855,721 754,163 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 330,551 452,166 Allowance for Doubtful Accounts We make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables when collection becomes doubtful. Provisions are made based upon a specific review of all significant outstanding invoices from both value and delinquency perspectives. For those invoices not specifically reviewed, provisions are estimated at differing rates based upon the age of the receivable and the geographic area of origin. In determining these percentages, we consider our historical collection experience and current economic trends in the customer's industry and geographic region. We recorded provisions for bad debts of $2.9 million , $1.6 million and $1.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event we determine that we will be able to realize deferred tax assets for which a valuation allowance was used to reduce their carrying value, the adjustment to the valuation allowance will be recorded as a reduction to the provision for income taxes. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more-likely-than-not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed its examination even though the statute of limitations remains open. We recognize interest and penalties related to income taxes within the income tax expense line in the consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. Foreign Currencies Certain of our sales and intercompany transactions are denominated in foreign currencies. These transactions are translated to the functional currency at the exchange rate on the transaction date. Assets and liabilities denominated in a currency other than our functional currency or our subsidiaries' functional currencies are translated at the effective exchange rate on the balance sheet date. Gains and losses resulting from foreign exchange transactions are included in other expense, net. We recorded net foreign exchange losses of $2.5 million , $3.1 million and $1.9 million for the years ended December 31, 2019 , 2018 and 2017, respectively. The financial statements of our foreign subsidiaries are translated from the functional (local) currency to U.S. Dollars. Assets and liabilities are translated at the exchange rates on the balance sheet date. Results of operations are translated at average exchange rates, which approximate rates in effect when the underlying transactions occurred. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is composed entirely of foreign currency translation adjustments. 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: Year Ended December 31, (in thousands, except per share data) 2019 2018 2017 Net income $ 451,295 $ 419,375 $ 259,251 Weighted average shares outstanding – basic 84,259 83,973 84,988 Dilutive effect of stock plans 1,666 1,940 1,866 Weighted average shares outstanding – diluted 85,925 85,913 86,854 Basic earnings per share $ 5.36 $ 4.99 $ 3.05 Diluted earnings per share $ 5.25 $ 4.88 $ 2.98 Anti-dilutive shares 14 7 84 Stock-Based Compensation We account for stock-based compensation in accordance with share-based payment accounting guidance. The guidance requires an entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized over the period during which an employee is required to provide services in exchange for the award, typically the vesting period. Fair Value of Financial Instruments We account for certain assets and liabilities at fair value in accordance with the accounting guidance applicable to fair value measurements and disclosures. The carrying values of cash, cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, other accrued liabilities and short-term obligations are deemed to be reasonable estimates of their fair values because of their short-term nature. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
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 We 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. The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the delivery of our software licenses, maintenance and services. We 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. 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 with the remainder recognized ratably to maintenance and service revenue. Disaggregation of Revenue The following table summarizes revenue: Year Ended December 31, (in thousands) 2019 2018 2017 Revenue: Lease licenses $ 406,043 $ 275,619 $ 376,886 Perpetual licenses 293,587 301,098 248,078 Software licenses 699,630 576,717 624,964 Maintenance 760,574 676,883 440,428 Service 55,688 40,036 29,858 Maintenance and service 816,262 716,919 470,286 Total revenue $ 1,515,892 $ 1,293,636 $ 1,095,250 Direct revenue, as a percentage of total revenue 77.1 % 77.6 % 75.2 % Indirect revenue, as a percentage of total revenue 22.9 % 22.4 % 24.8 % Our software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract. Deferred Revenue Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer 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 deferred revenue, during the years ended December 31, 2019 and 2018 were as follows: (in thousands) 2019 2018 Beginning balance – January 1 $ 343,174 $ 299,730 Acquired deferred revenue 6,880 2,470 Deferral of revenue 1,532,549 1,339,964 Recognition of deferred revenue (1,515,892 ) (1,293,636 ) Currency translation (1,437 ) (5,354 ) Ending balance – December 31 $ 365,274 $ 343,174 Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents installment billings for periods beyond the current quarterly billing cycle. Revenue recognized during the years ended December 31, 2019 and 2018 included amounts in deferred revenue and backlog at the beginning of the period of $475.9 million and $387.2 million , respectively. Total revenue allocated to remaining performance obligations as of December 31, 2019 will be recognized as revenue as follows: (in thousands) Next 12 months $ 569,751 Months 13-24 177,364 Months 25-36 93,097 Thereafter 30,531 Total revenue allocated to remaining performance obligations $ 870,743 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2019 Acquisitions On November 1, 2019, we completed the acquisition of 100% of the shares of LST, the premier provider of explicit dynamics and other advanced finite element analysis technology. The acquisition empowers our customers to solve a new class of engineering challenges, including developing safer automobiles, aircraft and trains while reducing or even eliminating the need for costly physical testing. The transaction closed with a purchase price of $777.8 million , which included $470.6 million in cash and the issuance of 1.4 million shares of our common stock in an unregistered offering to the prior owners of LST. The fair value of the common stock issued as consideration was based on the volume-weighted average price of our common stock on November 1, 2019 of $220.74 , resulting in a fair value of $307.2 million . On February 1, 2019, we completed the acquisition of 100% of the shares of Granta Design for a purchase price of $208.7 million , paid in cash and inclusive of final net working capital adjustments. The acquisition of Granta Design, the premier provider of materials information technology, expands our portfolio into this important area, giving customers access to materials intelligence, including data that is critical to successful simulations. Additionally, during the year ended December 31, 2019 , we acquired Dynardo, Helic and DfR Solutions to combine the acquired technologies with our existing comprehensive multiphysics portfolio. These acquisitions were not individually significant. The combined purchase price of these other acquisitions was $136.2 million , paid in cash. During the year ended December 31, 2019 , we incurred $6.6 million in acquisition-related expenses, recognized as selling, general and administrative expense on the consolidated statements of income. The assets and liabilities of the acquisitions have been recorded based upon management's estimates of their fair market values as of each respective date of acquisition. The following tables summarize the fair values of consideration transferred and the fair values of identified assets acquired and liabilities assumed at each respective date of acquisition: Fair Value of Consideration Transferred: (in thousands) LST Granta Design Other Acquisitions Total Cash $ 470,623 $ 208,736 $ 136,232 $ 815,591 Ansys common stock 307,173 — — 307,173 Total consideration transferred at fair value $ 777,796 $ 208,736 $ 136,232 $ 1,122,764 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) LST Granta Design Other Acquisitions Total Cash $ 8,520 $ 13,644 $ 6,231 $ 28,395 Accounts receivable and other tangible assets 20,568 6,941 10,746 38,255 Developed software and core technologies (10-year weighted-average life) 167,700 32,445 25,018 225,163 Customer lists (15-year weighted-average life) 25,900 20,016 15,743 61,659 Trade names (10-year weighted-average life) 10,600 4,579 2,051 17,230 Indemnification asset 34,039 — — 34,039 Accounts payable and other liabilities (3,721 ) (6,714 ) (6,425 ) (16,860 ) Deferred revenue (3,565 ) (1,426 ) (1,889 ) (6,880 ) Uncertain tax positions (34,039 ) — (257 ) (34,296 ) Net deferred tax liabilities (47,596 ) (9,822 ) (8,294 ) (65,712 ) Total identifiable net assets $ 178,406 $ 59,663 $ 42,924 $ 280,993 Goodwill $ 599,390 $ 149,073 $ 93,308 $ 841,771 LST has uncertain tax positions inclusive of interest and penalties of $34.0 million and a corresponding indemnification asset. The uncertain tax positions reflect potential federal and state tax liabilities associated with tax years 2016 to 2019. Settlements of the tax positions, if any, will be funded by the indemnification asset that was created in accordance with the executed Agreement and Plan of Merger. The goodwill, which is generally 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 acquisitions. 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). We determined the fair value of our intangible assets using various valuation techniques, including the relief-from-royalty method and the multi-period excess earnings method. These models utilize certain unobservable inputs classified as Level 3 measurements as defined by ASC 820, Fair Value Measurements and Disclosures . The determination of fair value requires considerable judgment and is sensitive to changes in underlying assumptions, estimates and market factors. Estimating fair value requires us to make assumptions and estimates regarding our future plans, as well as industry and economic conditions. These assumptions and estimates include, but are not limited to: royalty rate, discount rate and attrition rate. The valuation method and assumptions used to determine the fair value of the significant intangible assets acquired in 2019 are as follows: Intangible Asset Valuation Method LST Assumptions Granta Design Assumptions Developed software and core technologies Relief-from-royalty Royalty rate: 50% Discount rate: 10% Royalty rate: 8% - 10% Discount rate: 12.5% Trade names Relief-from-royalty Royalty rate: 2% Discount rate: 10% Royalty rate: 2% Discount rate: 14% Customer lists Multi-period excess earnings Attrition rate: 10% Discount rate: 11% Attrition rate: 10% Discount rate: 12.5% The operating results of each acquisition have been included in our consolidated financial statements since each respective date of acquisition. The effects of the business combinations were not material to our consolidated results of operations individually. The table presented below reflects the aggregate impact on our results of operations of the 2019 acquisitions from the date of acquisition to December 31, 2019. The operating income does not include integration costs borne directly by us and our non-acquired subsidiaries as a result of the acquisitions. (in thousands) Year Ended December 31, 2019 Revenue $ 44,079 Operating income $ 6,733 2018 Acquisition On May 2, 2018, we 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 extends our 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 operating results of OPTIS have been included in our 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) OPTIS Cash $ 290,983 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) OPTIS Cash $ 7,957 Accounts receivable and other tangible assets 15,910 Developed software and core technologies (10-year weighted-average life) 47,597 Customer lists (12-year life) 41,303 Trade names (9-year weighted-average life) 10,749 Accounts payable and other liabilities (11,941 ) Deferred revenue (2,470 ) Net deferred tax liabilities (23,438 ) Total identifiable net assets $ 85,667 Goodwill $ 205,316 The goodwill, which is generally 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. During the one-year measurement period since the OPTIS acquisition date, we adjusted the fair values of the assets acquired and liabilities assumed, with the offset recorded as a $2.6 million increase to goodwill. These adjustments were made as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Full pro forma results of operations have not been presented as the effects of the OPTIS business combination were not material to our consolidated results of operations. The table presented below reflects the impact of OPTIS from the date of acquisition to December 31, 2018. The operating loss does not include integration costs borne directly by us and our non-OPTIS subsidiaries as a result of the acquisition. (in thousands) Year Ended December 31, 2018 Revenue $ 18,532 Operating loss $ (5,462 ) 2017 Acquisitions During the year ended December 31, 2017 , we completed various acquisitions to expand our customer base and accelerate the development of new and innovative products to the marketplace while lowering design and engineering costs for customers. The acquisitions were not individually significant. The combined purchase price of the acquisitions was approximately $67.0 million . The 2017 technology acquisitions are further described in the table below: Date of Closing Company Details November 15, 2017 3DSIM 3DSIM, a developer of premier additive manufacturing technology, gives us a complete additive manufacturing simulation workflow solution. 3DSIM's software solutions empower manufacturers, designers, materials scientists and engineers to achieve their objectives through simulation-driven innovation rather than physical trial and error. July 5, 2017 Computational Engineering International, Inc. (CEI Inc.) CEI Inc., the developer of EnSight, aids engineers and scientists in their ability to analyze, visualize and communicate large simulation data sets in clear, higher-resolution outputs. March 10, 2017 CLK Design Automation (CLK-DA) CLK-DA offers fast transistor simulation technology that complements our semiconductor product portfolio. The operating results of each acquisition have been included in our consolidated financial statements since each respective date of acquisition. The effects of the business combinations were not material to our consolidated results of operations individually or in the aggregate. |
Other Receivables and Current A
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | Other Receivables and Current Assets and Other Accrued Expenses and Liabilities Our other receivables and current assets, and other accrued expenses and liabilities, comprise the following balances: December 31, (in thousands) 2019 2018 Receivables related to unrecognized revenue $ 177,679 $ 167,144 Income taxes receivable, including overpayments and refunds 26,672 13,709 Prepaid expenses and other current assets 45,268 35,260 Total other receivables and current assets $ 249,619 $ 216,113 Consumption, sales and VAT tax liabilities $ 36,398 $ 24,192 Accrued expenses and other current liabilities 106,549 75,367 Total other accrued expenses and liabilities $ 142,947 $ 99,559 Receivables related to unrecognized revenue represent the current portion of billings made for customer contracts that have not yet been recognized as revenue. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following: December 31, (in thousands) Estimated Useful Lives 2019 2018 Equipment 1-15 years $ 105,428 $ 92,409 Computer software 1-5 years 33,878 35,053 Buildings and improvements 5-40 years 38,095 27,352 Leasehold improvements 1-17 years 19,876 15,782 Furniture 1-13 years 12,766 10,846 Land 2,696 1,759 Property and equipment, gross 212,739 183,201 Less: Accumulated depreciation (129,103 ) (121,546 ) Property and equipment, net $ 83,636 $ 61,655 Depreciation expense related to property and equipment was $23.6 million , $18.4 million and $17.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the fair value of consideration transferred over the fair value of net identifiable assets acquired. Identifiable intangible assets acquired in business combinations are recorded based on their fair values on the date of acquisition. During the first quarter of 2019 , we 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, 2019 . No other events or circumstances changed during the year ended December 31, 2019 that would indicate that the fair values of our reporting unit and indefinite-lived intangible asset are below their carrying values. Intangible assets are classified as follows: December 31, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Developed software and core technologies $ 635,063 $ (332,622 ) $ 410,680 $ (314,730 ) Customer lists and contract backlog 269,629 (132,596 ) 209,031 (117,614 ) Trade names 154,259 (117,379 ) 137,225 (113,677 ) Total $ 1,058,951 $ (582,597 ) $ 756,936 $ (546,021 ) Indefinite-lived intangible asset: Trade name $ 357 $ 357 Finite-lived intangible assets are amortized over their estimated useful lives of two years to seventeen years . Amortization expense for the intangible assets reflected above was $36.9 million , $40.8 million and $49.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) 2020 $ 54,735 2021 53,231 2022 53,548 2023 52,474 2024 50,530 Thereafter 211,836 Total intangible assets subject to amortization, net 476,354 Indefinite-lived trade name 357 Other intangible assets, net $ 476,711 The changes in goodwill during the years ended December 31, 2019 and 2018 were as follows: (in thousands) 2019 2018 Beginning balance - January 1 $ 1,572,455 $ 1,378,553 Acquisitions and adjustments (1) 842,588 204,381 Currency translation (1,763 ) (10,479 ) Ending balance - December 31 $ 2,413,280 $ 1,572,455 (1) In accordance with the accounting for business combinations, we recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
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 our 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) December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 322,455 $ 322,455 $ — $ — Short-term investments $ 288 $ — $ 288 $ — Deferred compensation plan investments $ 1,110 $ 1,110 $ — $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 446,055 $ 446,055 $ — $ — Short-term investments $ 225 $ — $ 225 $ — Deferred compensation plan investments $ 1,646 $ 1,646 $ — $ — The cash equivalents in the preceding tables represent money market funds, valued at net asset value, with carrying values which approximate their fair values because of their short-term nature. The short-term investments in the preceding tables represent deposits held by certain foreign subsidiaries. The deposits have fixed interest rates with original maturities 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 our consolidated balance sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We primarily have operating leases for office space and leased cars included in our ROU assets and lease liabilities. Our executive offices and those related to certain domestic product development, marketing, production and administration are located in a 186,000 square foot office facility in Canonsburg, Pennsylvania. The term of the lease is 183 months, which began on October 1, 2014 and expires on December 31, 2029. The lease agreement includes options to renew the contract through August 2044, an option to lease additional space in January 2025 and an option to terminate the lease in December 2025. No options are included in the lease liability as renewal is not reasonably certain. In addition, we are reasonably certain we will not terminate the lease agreement. Absent the exercise of options in the lease, our base rent (inclusive of property taxes and certain operating costs) was $4.3 million per annum for the first five years of the lease term, $4.5 million per annum for years six through ten and $4.7 million per annum for years eleven through fifteen. The components of our global lease cost reflected in the consolidated statements of income for the year ended December 31, 2019 are as follows: (in thousands) Lease liability cost $ 22,507 Variable lease cost not included in the lease liability (1) 3,754 Total lease cost $ 26,261 (1) Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate. For the years ended December 31, 2018 and 2017, lease cost totaled $21.3 million and $18.4 million , respectively. Other information related to operating leases for the year ended December 31, 2019 is as follows: (in thousands) Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (20,031 ) Right-of-use assets obtained in exchange for new operating lease liabilities $ 35,191 As of December 31, 2019 , the weighted-average remaining lease term of operating leases was 7.7 years , and the weighted-average discount rate of operating leases was 3.7% . The maturity schedule of the operating lease liabilities as of December 31, 2019 is as follows: (in thousands) 2020 $ 21,617 2021 19,439 2022 16,616 2023 12,513 2024 12,421 Thereafter 46,159 Total future lease payments 128,765 Less: Present value adjustment (18,838 ) Present value of future lease payments (1) $ 109,927 (1) Includes the current portion of operating lease liabilities of $18.2 million , which is reflected in other accrued expenses and liabilities in the consolidated balance sheets. As of December 31, 2019 , we had operating office leases that have not yet commenced with combined lease obligations of $16.3 million . The leases commence in 2020 and have a weighted-average lease term of 7.2 years . The future minimum lease payments under ASC 840, including termination fees, under noncancellable operating leases for office space in effect at December 31, 2018 were as follows: (in thousands) 2019 $ 16,354 2020 12,469 2021 10,177 2022 8,523 2023 6,809 Thereafter 14,267 Total $ 68,599 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt In February 2019, we entered into a credit agreement for a $500.0 million unsecured revolving credit facility, which includes a $50.0 million sublimit for the issuance of letters of credit, with Bank of America, N.A. as the Administrative Agent. The revolving credit facility becomes payable in full on February 22, 2024 and is available for general corporate purposes, including, among others, to finance acquisitions and capital expenditures. In connection with the acquisition of LST, we amended our existing credit agreement (amended credit agreement). The amendment provides for a new $500.0 million unsecured term loan facility to finance the acquisition. The term loan was funded on November 1, 2019 and matures on November 1, 2024. Principal on the term loan will be payable on the last business day of each fiscal quarter commencing with the ninth full fiscal quarter after the funding date at a rate of 1.25% per quarter, increasing to 2.50% per quarter after the next four fiscal quarters. Borrowings under the amended credit agreement will accrue interest at the Eurodollar rate plus an applicable margin or at the base rate, at our election. For the quarter ended December 31, 2019 , we elected to apply the Eurodollar rate. The base rate is the applicable margin plus the highest of (i) the federal funds rate plus 0.500% , (ii) the Bank of America prime rate and (iii) the Eurodollar rate plus 1.000% . The applicable margin for these borrowings is a percentage per annum based on the lower of (1) a pricing level determined by our then-current consolidated leverage ratio and (2) a pricing level determined by our debt ratings (if such debt ratings exist). This results in a margin ranging from 1.125% to 1.750% and 0.125% to 0.750% for the Eurodollar rate and base rate, respectively. The interest rate in effect as of December 31, 2019 was 2.964% . The amended credit agreement contains language in the event the Eurodollar rate is not available due to LIBOR changes. If this occurs, the base rate will be used for borrowings. However, we may work with the Administrative Agent to amend the agreement to replace the Eurodollar rate with (i) one or more rates based on the Secured Overnight Financing Rate (SOFR); or (ii) another alternative benchmark rate, subject to the lenders' approval. The amended credit agreement contains customary representations and warranties, affirmative and negative covenants and events of default. The amended credit agreement also contains a financial covenant requiring us to maintain a consolidated leverage ratio of indebtedness to earnings before interest, taxes, depreciation and amortization not exceeding 3.50 to 1.00 as of the end of any fiscal quarter (for the four-quarter period ending on such date) with an opportunity for a temporary increase in such consolidated leverage ratio to 4.00 to 1.00 upon the consummation of certain qualified acquisitions for which the aggregate consideration is at least $250.0 million . As of December 31, 2019 , there were no outstanding borrowings under the unsecured revolving credit agreement, and the carrying value of the term loan was $498.5 million , which is net of $1.5 million of unamortized debt issuance costs. We were in compliance with all covenants. As of December 31, 2019 , scheduled maturities of total debt for each of the five succeeding fiscal years is as follows: (in thousands) 2020 (1) $ — 2021 — 2022 25,000 2023 50,000 2024 425,000 Total $ 500,000 (1) We repaid $75.0 million of the unsecured term loan in January 2020 prior to its scheduled maturity date. As such, the payment is reflected as current on our consolidated balance sheet but not in the table above. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes included the following components: Year Ended December 31, (in thousands) 2019 2018 2017 Domestic $ 448,271 $ 455,478 $ 344,447 Foreign 74,312 31,607 51,247 Total $ 522,583 $ 487,085 $ 395,694 The provision for income taxes was composed of the following: Year Ended December 31, (in thousands) 2019 2018 2017 Current: Federal $ 44,824 $ 58,138 $ 112,414 State 9,554 12,888 7,879 Foreign 31,421 30,359 18,843 Deferred: Federal (8,833 ) (20,764 ) (7,387 ) State (965 ) (2,901 ) (584 ) Foreign (4,713 ) (10,010 ) 5,278 Total $ 71,288 $ 67,710 $ 136,443 The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate was as follows: Year Ended December 31, 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 1.5 1.5 1.1 Foreign rate differential 0.8 0.8 0.1 Uncertain tax positions (0.2 ) 0.5 0.3 U.S. tax reform enactment (0.4 ) 0.2 4.5 Valuation allowance release (1.3 ) — — Domestic production activity benefit — — (2.6 ) Benefit from entity structuring activities — (1.4 ) — Research and development credits (2.2 ) (2.3 ) (1.4 ) Stock-based compensation (3.1 ) (3.3 ) (3.1 ) Foreign-derived intangible income deduction (3.8 ) (3.9 ) — Other 1.3 0.8 0.6 13.6 % 13.9 % 34.5 % On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Reform). Tax Reform made broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent ; (2) requiring companies to pay a one-time federal income tax on certain unrepatriated earnings of foreign subsidiaries (transition tax); (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) creating a new provision designed to tax global intangible low-taxed income (GILTI) which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (5) repealing the domestic production activity deduction; (6) creating the foreign-derived intangible income deduction; (7) creating the base erosion anti-abuse tax, a new minimum tax; (8) allowing for full expensing of qualified property through bonus depreciation; and (9) creating limitations on the deductibility of certain executive compensation. The SEC staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for the tax effects of Tax Reform. SAB 118 provided a measurement period that was limited to one year from enactment for companies to complete the accounting under ASC 740, Income Taxes . In accordance with SAB 118, throughout the measurement period, a company must reflect the income tax effects of those aspects of Tax Reform for which the accounting under ASC 740 was complete in the financial statements. To the extent that a company’s accounting for certain income tax effects of Tax Reform was incomplete, but a reasonable estimate was able to be made, the company must record a provisional estimate in the financial statements. If a company could not determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the tax laws that were in effect immediately before the enactment of Tax Reform. As further discussed below, we finalized our provisional Tax Reform calculations as of the end of the measurement period, based on guidance and information available as of the reporting date. The U.S. government has not yet issued final guidance related to a portion of the new rules enacted as part of Tax Reform. Subsequent adjustments, if any, will be recorded in the period in which guidance is finalized. Our accounting for the impact of the reduction in the U.S. federal corporate tax rate on our deferred tax assets and liabilities is complete. Tax Reform reduced the corporate tax rate to 21 percent , effective January 1, 2018. Consequently, we recorded a net adjustment to deferred income tax expense of $1.9 million for the year ended December 31, 2017 to revalue our deferred tax assets and liabilities. No further adjustments were recorded for the years ended December 31, 2019 and 2018. Our accounting for the transition tax is complete. Reasonable estimates of certain effects were 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, we determined, 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, we recognized an additional measurement-period adjustment for the year ended December 31, 2018 of $0.9 million to the transition tax obligation and a corresponding adjustment to tax expense. In February 2019, the U.S. government published final regulations relating to transition tax. In accordance with the final regulations, we recognized a post-measurement period reduction for the year ended December 31, 2019 of $1.8 million to the transition tax obligation and a corresponding adjustment to tax expense, resulting in a final transition tax obligation of $15.1 million . We have elected to pay this liability over eight years; however, in accordance with IRS issued guidance, tax overpayments from the year ended December 31, 2017 are required to be applied to the transition tax obligation. Based on this guidance, the entire balance of the obligation has been paid as of December 31, 2019. Our accounting for the indefinite reinvestment assertion is complete. In general, it is our intention to permanently reinvest all earnings in excess of previously taxed amounts. As part of Tax Reform, substantially all of the previous earnings of our non-U.S. subsidiaries were taxed through the transition tax and current earnings are taxed as part of GILTI tax expense. These taxes increased our previously taxed earnings and allow for the repatriation of the majority of our foreign earnings without any residual U.S. federal tax. While we believe that the financial reporting bases may be greater than the tax bases of investments in foreign subsidiaries for any earnings in excess of previously taxed amounts, such amounts are considered permanently reinvested. The cumulative temporary difference related to such permanently reinvested earnings is approximately $32.8 million and we would anticipate the tax effect on those earnings to be immaterial as a result of Tax Reform. During the year ended December 31, 2018, we repatriated $144.3 million of foreign cash. We did not make any adjustments related to our indefinite reinvestment assertion during the years ended December 31, 2019 and 2018. Our accounting policy choice for GILTI is complete. Under U.S. GAAP, we are 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 measurement of our deferred taxes (the deferred method). We selected the period cost method and recorded GILTI tax expense of $0.6 million and $0.4 million in the financial statements for the years ended December 31, 2019 and 2018, respectively. The components of deferred tax assets and liabilities are as follows: December 31, (in thousands) 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 35,044 $ 39,290 Operating lease liabilities 26,628 — Stock-based compensation 24,254 20,464 Uncertain tax positions 19,227 17,823 Employee benefits 9,392 15,048 Research and development credits 5,865 5,951 Other 6,309 4,121 Valuation allowance (17,524 ) (21,676 ) Total deferred tax assets 109,195 81,021 Deferred tax liabilities: Other intangible assets (99,193 ) (38,787 ) Operating lease right-of-use assets (25,648 ) — Accounting method change (21,396 ) (31,626 ) Deferred revenue (13,744 ) (12,021 ) Property and equipment (3,780 ) (2,034 ) Total deferred tax liabilities (163,761 ) (84,468 ) Net deferred tax liabilities $ (54,566 ) $ (3,447 ) The valuation allowance decreased by $4.2 million for the year ended December 31, 2019. Due to an enacted law change in a foreign jurisdiction during the year ended December 31, 2019, certain expenses will become nondeductible for tax purposes in 2020, resulting in the ability to utilize net operating losses in a jurisdiction where we previously determined utilization was remote. Considering all positive and negative evidence, we determined significant positive evidence exists to release $6.7 million of valuation allowance previously established. This decrease in the valuation allowance is offset by other increases in unrealizable tax assets. As of each reporting date, management considers new evidence, both positive and negative, that could affect the future realization of deferred tax assets. If management determines it is more likely than not that an asset, or a portion of an asset, will not be realized, a valuation allowance is recorded. As of December 31, 2019 , we had federal net operating loss carryforwards of $4.2 million . These losses expire between 2025 - 2037, and are subject to limitations on their utilization. Deferred tax assets of $0.3 million have been recorded for state operating loss carryforwards. These losses expire between 2030 - 2038, and are subject to limitations on their utilization. We had total foreign net operating loss carryforwards of $142.0 million , of which $113.2 million are not currently subject to expiration dates. The remainder, $28.8 million , expires between 2024 - 2036. We had tax credit carryforwards of $4.1 million , of which $1.2 million are subject to limitations on their utilization. Approximately $0.6 million of these tax credit carryforwards are not currently subject to expiration dates. The remainder, $3.5 million , expires in various years between 2020 - 2039. The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ended December 31, (in thousands) 2019 2018 2017 Unrecognized tax benefit as of January 1 $ 22,827 $ 19,657 $ 15,209 Gross increases—acquisitions 26,914 — — Gross increases—tax positions in prior period 207 1,229 905 Gross decreases—tax positions in prior period (1,743 ) (376 ) (765 ) Gross increases—tax positions in current period 3,563 4,014 3,757 Reductions due to a lapse of the applicable statute of limitations (2,230 ) (994 ) (847 ) Changes due to currency fluctuation (453 ) (703 ) 1,414 Settlements — — (16 ) Unrecognized tax benefit as of December 31 $ 49,085 $ 22,827 $ 19,657 We believe that it is reasonably possible that approximately $8.3 million of uncertain tax positions included in the table above may be resolved within the next twelve months as a result of settlement with a taxing authority or a lapse of the statute of limitations. If the unrecognized tax benefit as of December 31, 2019 were to be recognized, a benefit of $47.3 million would impact the effective tax rate. We recognize interest and penalties related to income taxes as income tax expense. During the years ended December 31, 2019 , 2018 and 2017, we recorded penalty expense of $0.5 million , $0.8 million and $1.1 million , respectively. We recorded interest expense of less than $0.1 million , interest income of $0.1 million and interest expense of $0.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019 , we accrued a liability for penalties of $11.7 million and interest of $6.6 million . As of December 31, 2018 , we accrued a liability for penalties of $4.7 million and interest of $4.0 million . We are subject to taxation in the U.S. and various states and foreign jurisdictions. In the U.S., our only major tax jurisdiction, the 2016 - 2019 tax years are open to examination by the Internal Revenue Service. |
Pension And Profit-Sharing Plan
Pension And Profit-Sharing Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension And Profit-Sharing Plans | Pension and Profit-Sharing Plans We have a 401(k)/profit-sharing plan for all qualifying domestic employees that permits participants to defer a portion of their pay pursuant to Section 401(k) of the Internal Revenue Code. We make matching contributions on behalf of each eligible participant in an amount equal to 100% of the first 3% and an additional 25% of the next 5% , for a maximum total of 4.25% of the employee's compensation. We may make a discretionary contribution based on the participant's eligible compensation, provided the employee is employed at the end of the year and has worked at least 1,000 hours . We also maintain and contribute to various defined contribution and defined benefit pension arrangements for our international employees. We meet the minimum statutory funding requirements for our foreign plans. As of December 31, 2019 , the total unfunded portion of the defined benefit obligations is $11.2 million . Expenses related to our retirement programs were $16.3 million in 2019 , $12.4 million in 2018 and $10.1 million in 2017 . |
Non-Compete and Employment Agre
Non-Compete and Employment Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Non-Compete and Employment Agreements [Abstract] | |
Non-Compete and Employment Agreements | Non-Compete and Employment Agreements Our employees have signed agreements under which they have agreed not to disclose trade secrets or confidential information that, where legally permitted, restrict engagement in or connection with any business that is competitive with us anywhere in the world while employed by us (and, in some cases, for specified periods thereafter in relevant geographic areas), and that any products or technology created by them during their term of employment are our property. In addition, we require all channel partners to enter into agreements not to disclose our trade secrets and other proprietary information. We have an employment agreement with our Chief Executive Officer. This agreement provides for, among other things, in the case of termination by us other than for Cause (as defined therein) or by the Chief Executive Officer for Good Reason (as defined therein) and subject to his execution and delivery of a release of claims against us, he will receive minimum severance payments equal to the sum of two times his base salary and target bonus to be paid out over two years from the date of termination and up to two years of COBRA payments for health care coverage after termination. During his employment with us and for two years thereafter, following termination of employment under certain circumstances described in the contract, he will be subject to non-competition and non-solicitation obligations. We also have employment agreements with several other employees, primarily in foreign jurisdictions. The terms of these employment agreements generally include annual compensation and non-compete clauses. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have an equity incentive plan - the Fifth Amended and Restated ANSYS, Inc. 1996 Stock Option and Grant Plan (Stock Plan). The Stock Plan, as amended, authorizes the grant of approximately 39.8 million shares of our common stock in the form of: (i) incentive stock options (ISOs), (ii) nonqualified stock options, (iii) common stock with or without vesting or other restrictions, (iv) common stock upon the attainment of specified performance goals, (v) restricted stock awards, (vi) the right to receive cash dividends with the holders of the common stock as if the recipient held a specified number of shares of the common stock, (vii) deferred stock awards, (viii) restricted stock unit awards, (ix) stock appreciation rights and (x) cash-based awards. The Stock Plan provides that: (i) the exercise price of any stock option must be no less than the fair value of the stock at the date of grant and (ii) the exercise price of an ISO held by an optionee who possesses more than 10% of the total combined voting power of all classes of stock must be no less than 110% of the fair market value of the stock at the time of grant. The Compensation Committee of the Board of Directors has the authority to set expiration dates that are no later than ten years from the date of grant (or five years for an optionee who meets the 10% criterion), payment terms, and other provisions for each grant. Shares associated with unexercised options or reacquired shares of common stock (except those shares withheld as a result of tax withholding, shares used to pay an option exercise price or pursuant to a net issuance) become available again for option grants and common stock-related awards under the Stock Plan. The Compensation Committee of the Board of Directors may, at its sole discretion, accelerate the date or dates on which an award granted under the Stock Plan may vest or extend, in the case of a stock option, the exercise period up to the expiration date of the option, subject to the terms and conditions of the Stock Plan. Upon termination of service of a participant due to the participant’s death or disability, the vesting of restricted stock units held by the participant accelerates (in case of performance-based vesting, subject to the attainment of the performance requirement). In the event of a "sale event," defined in the Stock Plan as a "Transaction," all outstanding awards will be assumed or continued by the successor entity, with appropriate adjustment in the awards to reflect the transaction. In such event, except as the Compensation Committee may otherwise specify with respect to particular awards in the award agreements, if the service relationship of the holder of an award is terminated without cause on or within 18 months after the sale event, then all awards held by such holder will become fully vested and exercisable at that time. If there is a sale event in which the successor entity refuses to assume or continue outstanding awards, then subject to the consummation of the sale event, all awards with time-based vesting conditions will become fully vested and exercisable at the effective time of the sale event and all awards with performance-based vesting conditions may become vested at the discretion of the Compensation Committee and then all such awards will terminate at the time of the sale event. In the event of the termination of stock options or stock appreciation rights in connection with a sale event, the Compensation Committee may either make or provide for a cash payment to the holders of such awards equal to the difference between the per share transaction consideration and the exercise price of such awards or permit each holder to have at least a 15 -day period to exercise such awards prior to their termination. We currently issue shares related to exercised stock options or vested awards from our existing pool of treasury shares and have no specific policy to repurchase treasury shares as stock options are exercised or as awards vest. If the treasury pool is depleted, we will issue new shares. Total stock-based compensation expense recognized for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Cost of sales: Software licenses $ — $ — $ 969 Maintenance and service 8,494 5,224 2,533 Operating expenses: Selling, general and administrative 60,639 47,099 30,817 Research and development 47,057 31,023 18,835 Stock-based compensation expense before taxes 116,190 83,346 53,154 Related income tax benefits (47,454 ) (34,518 ) (20,503 ) Stock-based compensation expense, net of taxes $ 68,736 $ 48,828 $ 32,651 Net impact on earnings per share: Basic earnings per share $ (0.82 ) $ (0.58 ) $ (0.38 ) Diluted earnings per share $ (0.80 ) $ (0.57 ) $ (0.38 ) Stock Options Prior to 2017, we granted stock option awards. The value of each stock option award was estimated on the date of grant, or date of acquisition for options issued in a business combination, using the Black-Scholes option pricing model (Black-Scholes model). The determination of the fair value of stock-based payment awards using an option pricing model was affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables included our stock volatility during the preceding six years, actual and projected employee stock option exercise behaviors, interest rate assumptions using the five-year U.S. Treasury Note yield on date of grant or acquisition date, and expected dividends. The stock-based compensation expense for options is recorded ratably over the requisite service period. Forfeitures of awards are accounted for as they occur. As of December 31, 2019 , total unrecognized estimated compensation cost related to unvested stock options granted prior to that date was $1.0 million , which is expected to be recognized over a weighted average period of less than 1.0 year . Information regarding stock option transactions is summarized below: Year Ended December 31, 2019 2018 2017 (options in thousands) Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Outstanding, beginning of year 1,484 $ 62.80 2,170 $ 59.17 3,136 $ 56.37 Granted — $ — — $ — — $ — Exercised (495 ) $ 53.53 (679 ) $ 50.92 (956 ) $ 49.78 Forfeited (5 ) $ 64.21 (7 ) $ 86.28 (10 ) $ 80.92 Outstanding, end of year 984 $ 67.49 1,484 $ 62.80 2,170 $ 59.17 Vested and Exercisable, end of year 924 $ 65.71 1,347 $ 59.69 1,930 $ 55.11 Nonvested 60 $ 94.77 137 $ 93.44 240 $ 91.71 2019 2018 2017 Weighted Average Remaining Contractual Term (in years) Outstanding 3.18 3.55 4.10 Vested and Exercisable 2.95 3.14 3.57 Nonvested 6.71 7.60 8.30 Aggregate Intrinsic Value (in thousands) Exercised $ 72,098 $ 78,648 $ 58,472 Outstanding $ 186,926 $ 118,908 $ 191,895 Vested and Exercisable $ 177,111 $ 112,133 $ 178,456 Nonvested $ 9,815 $ 6,775 $ 13,439 Compensation Expense - Stock Options (in thousands) $ 1,709 $ 2,006 $ 2,948 Historical and future expected forfeitures have not been significant and, as a result, the outstanding option amounts reflected in the tables above approximate the options expected to vest. Information regarding stock options outstanding as of December 31, 2019 is summarized below: (options in thousands) Options Outstanding Options Exercisable Options Unvested Range of Exercise Prices Options Weighted- Weighted- Options Weighted- Average Remaining Contractual Life (years) Weighted- Options Weighted- Average Remaining Contractual Life (years) Weighted- Average Exercise Price $11.99 - $48.97 181 1.01 $ 43.29 181 1.01 $ 43.29 — 0.00 $ — $58.67 267 1.87 $ 58.67 267 1.87 $ 58.67 — 0.00 $ — $67.44 280 2.87 $ 67.44 280 2.87 $ 67.44 — 0.00 $ — $76.31 - $95.09 256 6.44 $ 93.89 196 6.36 $ 93.62 60 6.71 $ 94.77 Restricted Stock Units Under the terms of the Fifth Amended and Restated ANSYS, Inc. 1996 Stock Option and Grant Plan, we issue various restricted stock unit awards. The following table summarizes the types of awards and vesting conditions: Award Vesting Period Vesting Condition Restricted stock units with a market and service condition Three years Our performance measured by total stockholder return relative to the Nasdaq Composite Index for the measurement period and subject to continued employment through the vesting period. Restricted stock units with an operating performance and service condition Three years Operating performance metrics as defined at the beginning of the performance cycle. Restricted stock units with a service condition only Three or four years Continued employment through the yearly vesting period. The fair values of restricted stock units (RSUs) with a market condition were estimated using a Monte Carlo simulation model and are recognized over the vesting period. The determination of the fair values of the awards was affected by the grant date and several variables, each of which has been identified in the chart below: Year Ended December 31, Assumptions used in Monte Carlo lattice pricing model 2019 2018 2017 Risk-free interest rate 2.5% 2.4% 1.5% Expected dividend yield —% —% —% Expected volatility—Ansys stock price 23% 21% 19% Expected volatility—Nasdaq Composite Index 16% 15% 15% Expected term 2.8 years 2.8 years 2.8 years Correlation factor 0.71 0.65 0.70 Weighted average fair value per share $238.99 $191.76 $120.94 The fair value of RSUs with operating performance metrics is based on the fair market value of our stock on the date of the grant and is recognized from the grant date through the conclusion of the measurement period associated with each operating performance metric based on management's estimates concerning the probability of vesting. The fair value of RSUs with only a service condition is based on the fair market value of our stock on the date of the grant and is recognized over the vesting period. Total compensation expense for employee RSU awards recorded for the years ended December 31, 2019 , 2018 and 2017 was $109.9 million , $77.4 million and $46.3 million , respectively. Information regarding all employee RSU transactions is summarized below: Year Ended December 31, 2019 2018 2017 (RSUs in thousands) RSUs Weighted- Average Grant Date Fair Value RSUs Weighted- Average Grant Date Fair Value RSUs Weighted- Average Grant Date Fair Value Nonvested, beginning of year 1,522 $ 129.96 1,361 $ 100.66 906 $ 86.45 Granted (1) 843 $ 192.37 681 $ 163.67 866 $ 109.67 Performance adjustment (2) 74 $ 167.87 76 $ 151.52 35 $ 98.29 Vested (704 ) $ 125.84 (524 ) $ 101.38 (341 ) $ 88.58 Forfeited (117 ) $ 140.43 (72 ) $ 125.29 (105 ) $ 90.80 Nonvested, end of year 1,618 $ 165.26 1,522 $ 129.96 1,361 $ 100.66 (1) Includes all RSUs granted during the year. RSUs with operating performance conditions are issued annually and have one or three performance cycles. Performance conditions are assigned at the beginning of each performance cycle and are reflected as grants at target at that time. (2) RSUs with a market or performance condition are granted at target and vest based on achievement of the market or operating performance and service conditions. The actual number of RSUs issued may be more or less than the target RSUs depending on the achievement of the market or operating performance conditions. Board of Directors During and prior to 2015, we granted deferred stock awards to non-employee Directors, which are rights to receive shares of common stock upon termination of service as a Director. Associated with these awards, we established a non-qualified 409(a) deferred compensation plan with assets held under a rabbi trust to provide Directors an opportunity to diversify their vested awards. During open trading windows and at their elective option, the Directors may convert their Ansys shares into a variety of non-Ansys-stock investment options in order to diversify a portion of their holdings, subject to meeting ownership guidelines. Information regarding deferred stock awards to non-employee Directors is summarized below: Year Ended December 31, 2019 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 12,250 120,449 132,699 Shares Diversified 13,348 (13,348 ) — Shares Issued Upon Retirement (20,000 ) (47,020 ) (67,020 ) Deferred Awards Outstanding, end of year 5,598 60,081 65,679 In 2019 , 2018 and 2017 , we granted 11,259 , 13,632 and 18,018 RSUs to non-employee Directors, respectively, which will vest in full upon the earlier of one year from the date of grant or the date of the next regular meeting of stockholders. If a non-employee Director retires prior to the vest date, the non-employee Director receives a pro-rata portion of the RSUs. The weighted-average grant date fair values per RSU were $187.53 , $165.71 and $123.38 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Total compensation expense associated with the awards recorded for the years ended December 31, 2019 , 2018 and 2017 was $2.5 million, $2.3 million and $2.6 million, respectively. Employee Stock Purchase Plan Our 1996 Employee Stock Purchase Plan (the “Purchase Plan”) was adopted by the Board of Directors on April 19, 1996 and was subsequently approved by our stockholders. The stockholders approved an amendment to the Purchase Plan in May 2016 to increase the number of shares available for offerings to 1.8 million shares. The Purchase Plan is administered by the Compensation Committee. Offerings under the Purchase Plan commence on each February 1 and August 1, and have a duration of six months . An employee who owns or is deemed to own shares of stock representing in excess of 5% of the combined voting power of all classes of our stock may not participate in the Purchase Plan. During each offering, an eligible employee may purchase shares under the Purchase Plan by authorizing payroll deductions of up to 10% of his or her cash compensation during the offering period. The maximum number of shares that may be purchased by any participating employee during any offering period is limited to 3,840 shares (as adjusted by the Compensation Committee from time to time). Unless the employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase common stock on the last business day of the period at a price equal to 90% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. Under applicable tax rules, an employee may not accrue the right to purchase more than $ 25,000 of common stock, based on the grant-date fair value, in any calendar year in which the option is outstanding at any time. As of December 31, 2019 , 1.6 million shares of common stock had been issued under the Purchase Plan. The total compensation expense recorded under the Purchase Plan during the years ended December 31, 2019 , 2018 and 2017 was $2.0 million , $1.8 million and $1.2 million , respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Under our stock repurchase program, we repurchased shares as follows: Year Ended December 31, (in thousands, except per share data) 2019 2018 2017 Number of shares repurchased 330 1,674 2,750 Average price paid per share $ 179.41 $ 161.12 $ 122.20 Total cost $ 59,116 $ 269,801 $ 336,042 In February 2018, our 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 December 31, 2019 , 3.5 million shares remained available for repurchase under the program. |
Royalty Agreements
Royalty Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Royalty Agreements [Abstract] | |
Royalty Agreements | Royalty Agreements We have entered into various renewable license agreements under which we have been granted access to the licensor's technology and the right to sell the technology in our product line. Royalties are payable to developers of the software at various rates and amounts, which generally are based upon unit sales, revenue or flat fees. Royalty fees are reported in cost of software licenses and were $22.4 million , $16.9 million and $16.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
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 was as follows: Year Ended December 31, (in thousands) 2019 2018 2017 United States $ 637,916 $ 506,335 $ 417,343 Japan 162,154 145,951 126,097 Germany 158,809 140,506 108,211 South Korea 90,082 72,724 63,011 France 68,551 67,657 53,672 China 64,725 57,567 54,415 Other EMEA 211,193 193,317 166,472 Other international 122,462 109,579 106,029 Total revenue $ 1,515,892 $ 1,293,636 $ 1,095,250 Property and equipment by geographic area was as follows: December 31, (in thousands) 2019 2018 United States $ 59,473 $ 46,605 India 5,660 4,176 Germany 4,237 2,158 United Kingdom 4,194 1,238 Other EMEA 5,532 3,724 Other international 4,540 3,754 Total property and equipment, net $ 83,636 $ 61,655 |
Unconditional Purchase Obligati
Unconditional Purchase Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |
Unconditional Purchase Obligations | Unconditional Purchase Obligations We have entered into various unconditional purchase obligations which primarily include royalties and software licenses and services . We expended $24.2 million , $22.4 million and $14.1 million related to unconditional purchase obligations that existed as of the beginning of each year for the years ended December 31, 2019 , 2018 and 2017 , respectively. Future expenditures under unconditional purchase obligations in effect as of December 31, 2019 are as follows: (in thousands) 2020 $ 37,183 2021 14,034 2022 10,689 2023 6,212 2024 3,264 Total $ 71,382 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2016, we initiated workforce realignment activities to reallocate resources to align with our future strategic plans. We completed the workforce realignment activities as of September 30, 2017. We 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 | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments We are 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 our opinion, the resolution of pending matters is not expected to have a material adverse effect on our 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 our results of operations, cash flows or financial position. Our Indian subsidiary has several service tax audits pending that have resulted in formal inquiries being received on transactions through mid-2012. We could incur tax charges and related liabilities of approximately $7.2 million . The service tax issues raised in our 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) passed a favorable ruling to Microsoft. The Microsoft case ruling was subsequently challenged in the Supreme Court by the Indian tax authority. We can provide no assurances on the impact that the present Microsoft case’s decision will have on our cases. We are uncertain as to when these service tax matters will be concluded. We sell software licenses and services to our customers under contractual agreements. Such agreements generally include certain provisions indemnifying the customer against claims of intellectual property infringement by third parties arising from such customer’s usage of our products or services. To date, payments related to these indemnification provisions have been immaterial. For several reasons, including the lack of prior material indemnification claims, we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | ANSYS, INC. AND SUBSIDIARIES Valuation and Qualifying Accounts (in thousands) Description Balance at Beginning of Year Additions: Charges to Costs and Expenses Deductions: Returns and Write-Offs Balance at End of Year Year ended December 31, 2019 $ 8,000 $ 2,928 $ 2,228 $ 8,700 Year ended December 31, 2018 $ 6,800 $ 1,577 $ 377 $ 8,000 Year ended December 31, 2017 $ 5,700 $ 1,474 $ 374 $ 6,800 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States. Certain items in the consolidated financial statements and the notes to the 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. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Leases: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (ASU 2016-02). We adopted ASU 2016-02 and its related amendments (collectively known as Accounting Standards Codification (ASC) 842) on January 1, 2019 using the modified retrospective approach. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 840, Leases . ASC 842 requires virtually all leases, other than leases of intangible assets, to be recorded on the balance sheet with a right-of-use (ROU) asset and a corresponding lease liability. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward our historical assessments of whether a contract contains a lease, lease classification and initial direct costs. In addition, we elected the accounting policy to combine the lease and nonlease components as a single component for all asset classes. We determine if an arrangement is a lease at inception. Leases are classified as either operating or finance leases based on certain criteria. This classification determines the timing and presentation of expenses on the income statement, as well as the presentation of the related cash flows and balance sheet. Operating leases are recorded on the balance sheet as operating lease right-of-use assets, other accrued expenses and liabilities, and long-term operating lease liabilities. We currently have no finance leases. ROU assets and related liabilities are recorded at lease commencement based on the present value of the lease payments over the expected lease term. Lease payments include future increases unless the increases are based on changes in an index or rate. As our leases do not usually provide an implicit rate, our incremental borrowing rate is used to calculate ROU assets and related liabilities. The incremental borrowing rate is determined based on our estimated credit rating, the term of the lease, the economic environment where the asset resides and full collateralization. The ROU assets and related lease liabilities include optional renewals for which we are reasonably certain to exercise; whereas, optional terminations are included unless it is reasonably certain not to be elected. The adoption of the new standard resulted in the recognition of ROU assets of $90.9 million and lease liabilities of $92.5 million , and corresponding deferred tax assets and liabilities, on our consolidated balance sheet as of January 1, 2019. The adoption had no impact on our consolidated statements of income or cash flows. Implementation cost accounting for cloud computing arrangements: In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). The standard aligns the accounting for costs incurred to implement a cloud computing arrangement (CCA) that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Under ASU 2018-15, an entity would apply Subtopic 350-40 to determine which implementation costs related to a CCA that is a service contract should be capitalized. The standard does not change the accounting for the service component of a CCA. The associated cash flows will be reflected within operating activities. We retrospectively adopted the guidance during the quarter ended December 31, 2019. The adoption resulted in the reclassification of cash flows associated with implementation costs related to CCAs that are service contracts on our consolidated statements of cash flows. This resulted in a decrease to operating cash flows, and a corresponding increase to investing cash flows, of $2.5 million , $1.4 million and $2.8 million for the years ending December 31, 2019, 2018 and 2017, respectively. The adoption had no impact on our consolidated balance sheets or consolidated statements of income. |
Accounting Guidance Issued And Not Yet Adopted | Accounting Guidance Issued and Not Yet Adopted Credit losses: In June 2016, the FASB issued ASU 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. We will adopt the standard effective January 1, 2020 and do not expect the adoption of the new standard to have a material effect on our consolidated financial statements. Income taxes: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. We are currently evaluating the impact that this guidance will have upon our financial position and results of operations, if any. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the amounts of revenue and expenses during the reported periods. Significant estimates included in these consolidated financial statements include: • Allowances for doubtful accounts receivable • Income tax accruals, including those related to the Tax Cuts and Jobs Act • Uncertain tax positions • Tax valuation reserves • Fair value of stock-based compensation and probabilities of performance award attainment • Contract revenue • Standalone selling prices of our products and services • Acquired deferred revenue • Useful lives for depreciation and amortization • Valuations of goodwill and other intangible assets • Deferred compensation • Loss contingencies • Operating lease assets and liabilities Actual results could differ from these estimates. Changes in estimates are recorded in the results of operations in the period that the changes occur. |
Revenue Recognition | Revenue Recognition Our revenue is derived principally from the licensing of computer software products and from related maintenance contracts. We adopted ASC 606 on January 1, 2018. 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. Revenue Recognition Policy 2019 and 2018 (ASC 606) We enter 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/or the utility that enables the customer to access authorization keys, provided that an enforceable contract has been received. Typically, our perpetual licenses are sold with post-contract support (PCS), which includes unspecified technical enhancements and customer support. We allocate 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 we satisfy the PCS performance obligation over time. In addition to perpetual licenses, we sell time-based lease licenses. Lease licenses are sold only as a bundled arrangement that includes the rights to a term software license and PCS. Utilizing observable inputs, we 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. This determination considered the value relationship for our products between PCS to time-based lease licenses, the value relationship between PCS and perpetual licenses, the average economic life of our products, software renewal rates and the price of the bundled arrangement in relation to the perpetual licensing approach. 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 upon delivery of the licensed product and/or utility that enables the customer to access authorization keys. The PCS is classified as maintenance revenue and is recognized ratably over the term of the contract, as we satisfy the PCS performance obligation 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, we recognize 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), we measure the progress toward completion of the obligations and recognize revenue accordingly. In measuring progress towards the completion of performance obligations, we typically utilize output-based estimates for services with contractual billing arrangements that are not based on time and materials, and estimate 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. Proceeds from customers for the purpose of expediting road-map items, developing new products or creating specific features and functionality for existing products is classified as revenue. We also execute arrangements through independent channel partners in which the channel partners are authorized to market and distribute our software products to end users of our 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. We recognize revenue from transactions with channel partners in a manner consistent with the direct sales described above for both perpetual and time-based licenses. Revenue from channel partner transactions is the amount remitted to us 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. Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the consolidated balance sheet as accounts receivable and accrued expenses. The collection and payment of these amounts are reported on a net basis in the consolidated statements of income and do not impact reported revenues or expenses. We do not offer right of return. We warrant to our customers that our software will perform substantially as specified in our current user manuals. We have not experienced significant claims related to software warranties beyond the scope of maintenance support, which we are 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 us. Our agreements with our customers generally require us to indemnify the customer against claims that our software infringes third-party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard respects, including our right to replace an infringing product. Significant Judgments (ASC 606) Our 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, to allocate the transaction price to each performance obligation. We use the estimated standalone selling price method to allocate the transaction price for each performance obligation. The estimated standalone selling price is determined using all information reasonably available to us, including market conditions and other observable inputs. The corresponding revenues are recognized as the related performance obligations are satisfied. We apply a practical expedient to expense sales commissions as incurred when the amortization period would have been one year or less. Sales commissions associated with the initial year of multi-year contracts are expensed as incurred due to their immateriality. Sales commissions associated with multi-year contracts beyond the initial year are subject to an employee service requirement and are expensed as incurred as they are not considered incremental costs to obtain a contract. We are 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 us with a significant financing benefit. We consider various factors in assessing whether a financing component exists, including the duration of the contract, market interest rates and the timing of payments. Our contracts do not include a significant financing component requiring adjustment to the transaction price. Revenue Recognition Policy 2017 (ASC 605) Revenue from perpetual licenses was classified as license revenue and was recognized upon delivery of the licensed product and/or the utility that enabled the customer to access authorization keys, provided that acceptance had occurred and a signed contractual obligation was received, the price was fixed and determinable, and collectibility of the receivable was probable. We determined the fair value of PCS sold together with perpetual licenses based on the rate charged for PCS when sold separately. Revenue from PCS contracts was classified as maintenance and service revenue and was recognized ratably over the term of the contract. Revenue for software lease licenses was classified as license revenue and was recognized over the period of the lease contract. Typically, our software leases include PCS which, due to the short term (principally one year or less) of our software lease licenses, were not permitted to be separated from lease revenue for accounting purposes. As a result, both the lease licenses and PCS were recognized ratably over the lease period. We included the revenue for the entire lease arrangement within software license revenue in the consolidated statements of income. Many of our semiconductor products are typically licensed via longer term leases of 24 – 36 months. We recognized revenue for these licenses over the term of the lease contract. Because we did not have vendor-specific objective evidence of the fair value of these leases, we also recognized revenue from perpetual licenses over the term of the lease contract during the infrequent occurrence of these licenses being sold with semiconductor leases in multiple-element arrangements. Revenue from training, support and other services was recognized as the services were performed. We applied the specific performance method to contracts in which the service consisted of a single act, such as providing a training class to a customer, and the proportional performance method to other service contracts that were longer in duration and often included multiple acts (for example, both training and consulting). In applying the proportional performance method, we typically utilized output-based estimates for services with contractual billing arrangements that were not based on time and materials, and estimated output based on the total tasks completed as compared to the total tasks required for each work contract. Input-based estimates were utilized for services that involved general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure. The accounting treatment under ASC 605 associated with arrangements through independent channel partners, non-income related taxes, warranties and indemnification obligations is consistent with the accounting treatment under ASC 606 described above. |
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. Our cash and cash equivalents balances comprise the following: December 31, 2019 December 31, 2018 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 549,639 63.0 $ 331,084 42.6 Money market funds 322,455 37.0 446,055 57.4 Total $ 872,094 $ 777,139 Our money market fund balances are held in various funds of a single issuer. |
Property And Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of assets, which range from one year to forty years . Repairs and maintenance are charged to expense as incurred. Gains or losses from the sale or retirement of property and equipment are included in operating income. |
Research And Development | Research and Development Research and development costs are expensed as incurred. Internally developed software costs required to be capitalized as defined by the accounting guidance are not material to our consolidated financial statements. |
Business Combinations | Business Combinations When we consummate an acquisition, the assets acquired and the liabilities assumed are recognized separately from goodwill at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of the fair value of consideration transferred over the acquisition date fair value of the net identifiable assets acquired. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as we obtain new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Upon the earlier of the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, any subsequent adjustments are recorded in the consolidated statements of income. |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the fair value of consideration transferred over the fair value of net identifiable assets acquired. Other intangible assets consist of trade names, customer lists, contract backlog and acquired software and technology. Intangible assets that are not considered to have an indefinite useful life are amortized over their useful lives, which range from two years to seventeen years . Amortization expense for intangible assets was $36.9 million , $40.8 million and $49.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. We test goodwill and indefinite-lived intangible assets for impairment at least annually by performing a quantitative assessment of whether the fair value of each reporting unit or asset exceeds its carrying amount. We have one reporting unit. Goodwill is tested at this reporting unit level and indefinite-lived intangible assets are tested at the individual asset level. This requires us to assess and make judgments regarding a variety of factors which impact the fair value of the reporting unit or asset being tested, including business plans, anticipated future cash flows, economic projections and other market data. We perform our annual impairment tests for goodwill and indefinite-lived intangible assets as of January 1 of each year unless there is an indicator that would require a test during the year. We periodically review the carrying value of other intangible assets and will recognize impairments when events or circumstances indicate that such assets may be impaired. |
Concentrations Of Credit Risk | Concentrations of Credit Risk We have a concentration of credit risk with respect to revenue and trade receivables due to the use of certain significant channel partners to market and sell our products. We perform periodic credit evaluations of our customers' financial condition and generally do not require collateral. The following table outlines concentrations of risk with respect to our revenue: Year Ended December 31, (as a % of revenue) 2019 2018 2017 Revenue from channel partners 23 % 22 % 25 % Largest channel partner 4 % 4 % 5 % 2 nd largest channel partner 2 % 2 % 2 % No single customer accounted for more than 5% of our revenue in 2019 , 2018 or 2017 . In addition to the concentration of credit risk with respect to trade receivables, our cash and cash equivalents are also exposed to concentration risk. Our cash and cash equivalent accounts are insured through various public and private bank deposit insurance programs, foreign and domestic; however, a significant portion of our funds are not insured. The following table outlines concentrations of risk with respect to our cash and cash equivalents: As of December 31, (in thousands) 2019 2018 Cash and cash equivalents held domestically $ 626,433 $ 616,249 Cash and cash equivalents held by foreign subsidiaries 245,661 160,890 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 855,721 754,163 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 330,551 452,166 |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts We make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables when collection becomes doubtful. Provisions are made based upon a specific review of all significant outstanding invoices from both value and delinquency perspectives. For those invoices not specifically reviewed, provisions are estimated at differing rates based upon the age of the receivable and the geographic area of origin. In determining these percentages, we consider our historical collection experience and current economic trends in the customer's industry and geographic region. We recorded provisions for bad debts of $2.9 million , $1.6 million and $1.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event we determine that we will be able to realize deferred tax assets for which a valuation allowance was used to reduce their carrying value, the adjustment to the valuation allowance will be recorded as a reduction to the provision for income taxes. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more-likely-than-not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed its examination even though the statute of limitations remains open. We recognize interest and penalties related to income taxes within the income tax expense line in the consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. |
Foreign Currencies | Foreign Currencies Certain of our sales and intercompany transactions are denominated in foreign currencies. These transactions are translated to the functional currency at the exchange rate on the transaction date. Assets and liabilities denominated in a currency other than our functional currency or our subsidiaries' functional currencies are translated at the effective exchange rate on the balance sheet date. Gains and losses resulting from foreign exchange transactions are included in other expense, net. We recorded net foreign exchange losses of $2.5 million , $3.1 million and $1.9 million for the years ended December 31, 2019 , 2018 and 2017, respectively. The financial statements of our foreign subsidiaries are translated from the functional (local) currency to U.S. Dollars. Assets and liabilities are translated at the exchange rates on the balance sheet date. Results of operations are translated at average exchange rates, which approximate rates in effect when the underlying transactions occurred. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is composed entirely of foreign currency translation adjustments. |
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: Year Ended December 31, (in thousands, except per share data) 2019 2018 2017 Net income $ 451,295 $ 419,375 $ 259,251 Weighted average shares outstanding – basic 84,259 83,973 84,988 Dilutive effect of stock plans 1,666 1,940 1,866 Weighted average shares outstanding – diluted 85,925 85,913 86,854 Basic earnings per share $ 5.36 $ 4.99 $ 3.05 Diluted earnings per share $ 5.25 $ 4.88 $ 2.98 Anti-dilutive shares 14 7 84 |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation in accordance with share-based payment accounting guidance. The guidance requires an entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized over the period during which an employee is required to provide services in exchange for the award, typically the vesting period. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments We account for certain assets and liabilities at fair value in accordance with the accounting guidance applicable to fair value measurements and disclosures. The carrying values of cash, cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, other accrued liabilities and short-term obligations are deemed to be reasonable estimates of their fair values because of their short-term nature. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Cash And Cash Equivalents | Our cash and cash equivalents balances comprise the following: December 31, 2019 December 31, 2018 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 549,639 63.0 $ 331,084 42.6 Money market funds 322,455 37.0 446,055 57.4 Total $ 872,094 $ 777,139 |
Basic And Diluted Earnings Per Share | The details of basic and diluted EPS are as follows: Year Ended December 31, (in thousands, except per share data) 2019 2018 2017 Net income $ 451,295 $ 419,375 $ 259,251 Weighted average shares outstanding – basic 84,259 83,973 84,988 Dilutive effect of stock plans 1,666 1,940 1,866 Weighted average shares outstanding – diluted 85,925 85,913 86,854 Basic earnings per share $ 5.36 $ 4.99 $ 3.05 Diluted earnings per share $ 5.25 $ 4.88 $ 2.98 Anti-dilutive shares 14 7 84 |
Customer Concentration Risk | |
Schedule Of Risk Concentration | The following table outlines concentrations of risk with respect to our revenue: Year Ended December 31, (as a % of revenue) 2019 2018 2017 Revenue from channel partners 23 % 22 % 25 % Largest channel partner 4 % 4 % 5 % 2 nd largest channel partner 2 % 2 % 2 % |
Credit Concentration Risk | |
Schedule Of Risk Concentration | The following table outlines concentrations of risk with respect to our cash and cash equivalents: As of December 31, (in thousands) 2019 2018 Cash and cash equivalents held domestically $ 626,433 $ 616,249 Cash and cash equivalents held by foreign subsidiaries 245,661 160,890 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 855,721 754,163 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 330,551 452,166 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue: Year Ended December 31, (in thousands) 2019 2018 2017 Revenue: Lease licenses $ 406,043 $ 275,619 $ 376,886 Perpetual licenses 293,587 301,098 248,078 Software licenses 699,630 576,717 624,964 Maintenance 760,574 676,883 440,428 Service 55,688 40,036 29,858 Maintenance and service 816,262 716,919 470,286 Total revenue $ 1,515,892 $ 1,293,636 $ 1,095,250 Direct revenue, as a percentage of total revenue 77.1 % 77.6 % 75.2 % Indirect revenue, as a percentage of total revenue 22.9 % 22.4 % 24.8 % |
Changes in Deferred Revenue | The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the years ended December 31, 2019 and 2018 were as follows: (in thousands) 2019 2018 Beginning balance – January 1 $ 343,174 $ 299,730 Acquired deferred revenue 6,880 2,470 Deferral of revenue 1,532,549 1,339,964 Recognition of deferred revenue (1,515,892 ) (1,293,636 ) Currency translation (1,437 ) (5,354 ) Ending balance – December 31 $ 365,274 $ 343,174 |
Remaining Performance Obligations, Expected Timing of Satisfaction | Total revenue allocated to remaining performance obligations as of December 31, 2019 will be recognized as revenue as follows: (in thousands) Next 12 months $ 569,751 Months 13-24 177,364 Months 25-36 93,097 Thereafter 30,531 Total revenue allocated to remaining performance obligations $ 870,743 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Fair Value of Consideration Transferred | Fair Value of Consideration Transferred: (in thousands) LST Granta Design Other Acquisitions Total Cash $ 470,623 $ 208,736 $ 136,232 $ 815,591 Ansys common stock 307,173 — — 307,173 Total consideration transferred at fair value $ 777,796 $ 208,736 $ 136,232 $ 1,122,764 Fair Value of Consideration Transferred: (in thousands) OPTIS Cash $ 290,983 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) OPTIS Cash $ 7,957 Accounts receivable and other tangible assets 15,910 Developed software and core technologies (10-year weighted-average life) 47,597 Customer lists (12-year life) 41,303 Trade names (9-year weighted-average life) 10,749 Accounts payable and other liabilities (11,941 ) Deferred revenue (2,470 ) Net deferred tax liabilities (23,438 ) Total identifiable net assets $ 85,667 Goodwill $ 205,316 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) LST Granta Design Other Acquisitions Total Cash $ 8,520 $ 13,644 $ 6,231 $ 28,395 Accounts receivable and other tangible assets 20,568 6,941 10,746 38,255 Developed software and core technologies (10-year weighted-average life) 167,700 32,445 25,018 225,163 Customer lists (15-year weighted-average life) 25,900 20,016 15,743 61,659 Trade names (10-year weighted-average life) 10,600 4,579 2,051 17,230 Indemnification asset 34,039 — — 34,039 Accounts payable and other liabilities (3,721 ) (6,714 ) (6,425 ) (16,860 ) Deferred revenue (3,565 ) (1,426 ) (1,889 ) (6,880 ) Uncertain tax positions (34,039 ) — (257 ) (34,296 ) Net deferred tax liabilities (47,596 ) (9,822 ) (8,294 ) (65,712 ) Total identifiable net assets $ 178,406 $ 59,663 $ 42,924 $ 280,993 Goodwill $ 599,390 $ 149,073 $ 93,308 $ 841,771 |
Business Acquisition, Pro Forma Information | The table presented below reflects the impact of OPTIS from the date of acquisition to December 31, 2018. The operating loss does not include integration costs borne directly by us and our non-OPTIS subsidiaries as a result of the acquisition. (in thousands) Year Ended December 31, 2018 Revenue $ 18,532 Operating loss $ (5,462 ) (in thousands) Year Ended December 31, 2019 Revenue $ 44,079 Operating income $ 6,733 |
Other Receivables and Current_2
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | |
Schedule of Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | Our other receivables and current assets, and other accrued expenses and liabilities, comprise the following balances: December 31, (in thousands) 2019 2018 Receivables related to unrecognized revenue $ 177,679 $ 167,144 Income taxes receivable, including overpayments and refunds 26,672 13,709 Prepaid expenses and other current assets 45,268 35,260 Total other receivables and current assets $ 249,619 $ 216,113 Consumption, sales and VAT tax liabilities $ 36,398 $ 24,192 Accrued expenses and other current liabilities 106,549 75,367 Total other accrued expenses and liabilities $ 142,947 $ 99,559 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property and Equipment | Property and equipment consists of the following: December 31, (in thousands) Estimated Useful Lives 2019 2018 Equipment 1-15 years $ 105,428 $ 92,409 Computer software 1-5 years 33,878 35,053 Buildings and improvements 5-40 years 38,095 27,352 Leasehold improvements 1-17 years 19,876 15,782 Furniture 1-13 years 12,766 10,846 Land 2,696 1,759 Property and equipment, gross 212,739 183,201 Less: Accumulated depreciation (129,103 ) (121,546 ) Property and equipment, net $ 83,636 $ 61,655 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets (Finite-Lived) | Intangible assets are classified as follows: December 31, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Developed software and core technologies $ 635,063 $ (332,622 ) $ 410,680 $ (314,730 ) Customer lists and contract backlog 269,629 (132,596 ) 209,031 (117,614 ) Trade names 154,259 (117,379 ) 137,225 (113,677 ) Total $ 1,058,951 $ (582,597 ) $ 756,936 $ (546,021 ) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Intangible Assets (Indefinite-Lived) | Intangible assets are classified as follows: December 31, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Finite-lived intangible assets: Developed software and core technologies $ 635,063 $ (332,622 ) $ 410,680 $ (314,730 ) Customer lists and contract backlog 269,629 (132,596 ) 209,031 (117,614 ) Trade names 154,259 (117,379 ) 137,225 (113,677 ) Total $ 1,058,951 $ (582,597 ) $ 756,936 $ (546,021 ) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Estimated Future Amortization Expense for Intangible Assets | As of December 31, 2019 , estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) 2020 $ 54,735 2021 53,231 2022 53,548 2023 52,474 2024 50,530 Thereafter 211,836 Total intangible assets subject to amortization, net 476,354 Indefinite-lived trade name 357 Other intangible assets, net $ 476,711 |
Changes in Goodwill | The changes in goodwill during the years ended December 31, 2019 and 2018 were as follows: (in thousands) 2019 2018 Beginning balance - January 1 $ 1,572,455 $ 1,378,553 Acquisitions and adjustments (1) 842,588 204,381 Currency translation (1,763 ) (10,479 ) Ending balance - December 31 $ 2,413,280 $ 1,572,455 (1) In accordance with the accounting for business combinations, we recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 322,455 $ 322,455 $ — $ — Short-term investments $ 288 $ — $ 288 $ — Deferred compensation plan investments $ 1,110 $ 1,110 $ — $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents $ 446,055 $ 446,055 $ — $ — Short-term investments $ 225 $ — $ 225 $ — Deferred compensation plan investments $ 1,646 $ 1,646 $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of our global lease cost reflected in the consolidated statements of income for the year ended December 31, 2019 are as follows: (in thousands) Lease liability cost $ 22,507 Variable lease cost not included in the lease liability (1) 3,754 Total lease cost $ 26,261 (1) Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate. |
Lessee, Operating Lease Other Information | Other information related to operating leases for the year ended December 31, 2019 is as follows: (in thousands) Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (20,031 ) Right-of-use assets obtained in exchange for new operating lease liabilities $ 35,191 |
Schedule of Maturity of Operating Lease Liabilities | The maturity schedule of the operating lease liabilities as of December 31, 2019 is as follows: (in thousands) 2020 $ 21,617 2021 19,439 2022 16,616 2023 12,513 2024 12,421 Thereafter 46,159 Total future lease payments 128,765 Less: Present value adjustment (18,838 ) Present value of future lease payments (1) $ 109,927 (1) Includes the current portion of operating lease liabilities of $18.2 million , which is reflected in other accrued expenses and liabilities in the consolidated balance sheets. |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments under ASC 840, including termination fees, under noncancellable operating leases for office space in effect at December 31, 2018 were as follows: (in thousands) 2019 $ 16,354 2020 12,469 2021 10,177 2022 8,523 2023 6,809 Thereafter 14,267 Total $ 68,599 |
Debt (Table)
Debt (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Debt | As of December 31, 2019 , scheduled maturities of total debt for each of the five succeeding fiscal years is as follows: (in thousands) 2020 (1) $ — 2021 — 2022 25,000 2023 50,000 2024 425,000 Total $ 500,000 (1) We repaid $75.0 million of the unsecured term loan in January 2020 prior to its scheduled maturity date. As such, the payment is reflected as current on our consolidated balance sheet but not in the table above. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Income Taxes | Income before income taxes included the following components: Year Ended December 31, (in thousands) 2019 2018 2017 Domestic $ 448,271 $ 455,478 $ 344,447 Foreign 74,312 31,607 51,247 Total $ 522,583 $ 487,085 $ 395,694 |
Components Of Provision For Income Taxes | The provision for income taxes was composed of the following: Year Ended December 31, (in thousands) 2019 2018 2017 Current: Federal $ 44,824 $ 58,138 $ 112,414 State 9,554 12,888 7,879 Foreign 31,421 30,359 18,843 Deferred: Federal (8,833 ) (20,764 ) (7,387 ) State (965 ) (2,901 ) (584 ) Foreign (4,713 ) (10,010 ) 5,278 Total $ 71,288 $ 67,710 $ 136,443 |
Reconciliation Of U.S. Federal Statutory Tax Rate To Consolidated Effective Tax Rate | The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate was as follows: Year Ended December 31, 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 1.5 1.5 1.1 Foreign rate differential 0.8 0.8 0.1 Uncertain tax positions (0.2 ) 0.5 0.3 U.S. tax reform enactment (0.4 ) 0.2 4.5 Valuation allowance release (1.3 ) — — Domestic production activity benefit — — (2.6 ) Benefit from entity structuring activities — (1.4 ) — Research and development credits (2.2 ) (2.3 ) (1.4 ) Stock-based compensation (3.1 ) (3.3 ) (3.1 ) Foreign-derived intangible income deduction (3.8 ) (3.9 ) — Other 1.3 0.8 0.6 13.6 % 13.9 % 34.5 % |
Components Of Deferred Tax Assets And Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, (in thousands) 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 35,044 $ 39,290 Operating lease liabilities 26,628 — Stock-based compensation 24,254 20,464 Uncertain tax positions 19,227 17,823 Employee benefits 9,392 15,048 Research and development credits 5,865 5,951 Other 6,309 4,121 Valuation allowance (17,524 ) (21,676 ) Total deferred tax assets 109,195 81,021 Deferred tax liabilities: Other intangible assets (99,193 ) (38,787 ) Operating lease right-of-use assets (25,648 ) — Accounting method change (21,396 ) (31,626 ) Deferred revenue (13,744 ) (12,021 ) Property and equipment (3,780 ) (2,034 ) Total deferred tax liabilities (163,761 ) (84,468 ) Net deferred tax liabilities $ (54,566 ) $ (3,447 ) |
Reconciliation Of Unrecognized Tax Benefits | The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ended December 31, (in thousands) 2019 2018 2017 Unrecognized tax benefit as of January 1 $ 22,827 $ 19,657 $ 15,209 Gross increases—acquisitions 26,914 — — Gross increases—tax positions in prior period 207 1,229 905 Gross decreases—tax positions in prior period (1,743 ) (376 ) (765 ) Gross increases—tax positions in current period 3,563 4,014 3,757 Reductions due to a lapse of the applicable statute of limitations (2,230 ) (994 ) (847 ) Changes due to currency fluctuation (453 ) (703 ) 1,414 Settlements — — (16 ) Unrecognized tax benefit as of December 31 $ 49,085 $ 22,827 $ 19,657 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock-Based Compensation Expense | Total stock-based compensation expense recognized for the years ended December 31, 2019 , 2018 and 2017 is as follows: Year Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Cost of sales: Software licenses $ — $ — $ 969 Maintenance and service 8,494 5,224 2,533 Operating expenses: Selling, general and administrative 60,639 47,099 30,817 Research and development 47,057 31,023 18,835 Stock-based compensation expense before taxes 116,190 83,346 53,154 Related income tax benefits (47,454 ) (34,518 ) (20,503 ) Stock-based compensation expense, net of taxes $ 68,736 $ 48,828 $ 32,651 Net impact on earnings per share: Basic earnings per share $ (0.82 ) $ (0.58 ) $ (0.38 ) Diluted earnings per share $ (0.80 ) $ (0.57 ) $ (0.38 ) |
Summary Of Stock Options | Information regarding stock option transactions is summarized below: Year Ended December 31, 2019 2018 2017 (options in thousands) Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Outstanding, beginning of year 1,484 $ 62.80 2,170 $ 59.17 3,136 $ 56.37 Granted — $ — — $ — — $ — Exercised (495 ) $ 53.53 (679 ) $ 50.92 (956 ) $ 49.78 Forfeited (5 ) $ 64.21 (7 ) $ 86.28 (10 ) $ 80.92 Outstanding, end of year 984 $ 67.49 1,484 $ 62.80 2,170 $ 59.17 Vested and Exercisable, end of year 924 $ 65.71 1,347 $ 59.69 1,930 $ 55.11 Nonvested 60 $ 94.77 137 $ 93.44 240 $ 91.71 2019 2018 2017 Weighted Average Remaining Contractual Term (in years) Outstanding 3.18 3.55 4.10 Vested and Exercisable 2.95 3.14 3.57 Nonvested 6.71 7.60 8.30 Aggregate Intrinsic Value (in thousands) Exercised $ 72,098 $ 78,648 $ 58,472 Outstanding $ 186,926 $ 118,908 $ 191,895 Vested and Exercisable $ 177,111 $ 112,133 $ 178,456 Nonvested $ 9,815 $ 6,775 $ 13,439 Compensation Expense - Stock Options (in thousands) $ 1,709 $ 2,006 $ 2,948 |
Summary Of Restricted Stock Units | Information regarding all employee RSU transactions is summarized below: Year Ended December 31, 2019 2018 2017 (RSUs in thousands) RSUs Weighted- Average Grant Date Fair Value RSUs Weighted- Average Grant Date Fair Value RSUs Weighted- Average Grant Date Fair Value Nonvested, beginning of year 1,522 $ 129.96 1,361 $ 100.66 906 $ 86.45 Granted (1) 843 $ 192.37 681 $ 163.67 866 $ 109.67 Performance adjustment (2) 74 $ 167.87 76 $ 151.52 35 $ 98.29 Vested (704 ) $ 125.84 (524 ) $ 101.38 (341 ) $ 88.58 Forfeited (117 ) $ 140.43 (72 ) $ 125.29 (105 ) $ 90.80 Nonvested, end of year 1,618 $ 165.26 1,522 $ 129.96 1,361 $ 100.66 (1) Includes all RSUs granted during the year. RSUs with operating performance conditions are issued annually and have one or three performance cycles. Performance conditions are assigned at the beginning of each performance cycle and are reflected as grants at target at that time. (2) RSUs with a market or performance condition are granted at target and vest based on achievement of the market or operating performance and service conditions. The actual number of RSUs issued may be more or less than the target RSUs depending on the achievement of the market or operating performance conditions. |
Summary Of Deferred Stock Awards To Non-Employee Directors | Information regarding deferred stock awards to non-employee Directors is summarized below: Year Ended December 31, 2019 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 12,250 120,449 132,699 Shares Diversified 13,348 (13,348 ) — Shares Issued Upon Retirement (20,000 ) (47,020 ) (67,020 ) Deferred Awards Outstanding, end of year 5,598 60,081 65,679 |
Employee Stock Option | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Information Regarding Stock Options Outstanding | Information regarding stock options outstanding as of December 31, 2019 is summarized below: (options in thousands) Options Outstanding Options Exercisable Options Unvested Range of Exercise Prices Options Weighted- Weighted- Options Weighted- Average Remaining Contractual Life (years) Weighted- Options Weighted- Average Remaining Contractual Life (years) Weighted- Average Exercise Price $11.99 - $48.97 181 1.01 $ 43.29 181 1.01 $ 43.29 — 0.00 $ — $58.67 267 1.87 $ 58.67 267 1.87 $ 58.67 — 0.00 $ — $67.44 280 2.87 $ 67.44 280 2.87 $ 67.44 — 0.00 $ — $76.31 - $95.09 256 6.44 $ 93.89 196 6.36 $ 93.62 60 6.71 $ 94.77 |
Restricted Stock Units (RSUs) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Assumptions To Estimate Fair Value Of Stock Awards | The determination of the fair values of the awards was affected by the grant date and several variables, each of which has been identified in the chart below: Year Ended December 31, Assumptions used in Monte Carlo lattice pricing model 2019 2018 2017 Risk-free interest rate 2.5% 2.4% 1.5% Expected dividend yield —% —% —% Expected volatility—Ansys stock price 23% 21% 19% Expected volatility—Nasdaq Composite Index 16% 15% 15% Expected term 2.8 years 2.8 years 2.8 years Correlation factor 0.71 0.65 0.70 Weighted average fair value per share $238.99 $191.76 $120.94 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Under our stock repurchase program, we repurchased shares as follows: Year Ended December 31, (in thousands, except per share data) 2019 2018 2017 Number of shares repurchased 330 1,674 2,750 Average price paid per share $ 179.41 $ 161.12 $ 122.20 Total cost $ 59,116 $ 269,801 $ 336,042 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Revenue By Geographic Area | Revenue by geographic area was as follows: Year Ended December 31, (in thousands) 2019 2018 2017 United States $ 637,916 $ 506,335 $ 417,343 Japan 162,154 145,951 126,097 Germany 158,809 140,506 108,211 South Korea 90,082 72,724 63,011 France 68,551 67,657 53,672 China 64,725 57,567 54,415 Other EMEA 211,193 193,317 166,472 Other international 122,462 109,579 106,029 Total revenue $ 1,515,892 $ 1,293,636 $ 1,095,250 |
Property and Equipment by Geographic Area | Property and equipment by geographic area was as follows: December 31, (in thousands) 2019 2018 United States $ 59,473 $ 46,605 India 5,660 4,176 Germany 4,237 2,158 United Kingdom 4,194 1,238 Other EMEA 5,532 3,724 Other international 4,540 3,754 Total property and equipment, net $ 83,636 $ 61,655 |
Unconditional Purchase Obliga_2
Unconditional Purchase Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |
Unrecorded Unconditional Purchase Obligations Disclosure | Future expenditures under unconditional purchase obligations in effect as of December 31, 2019 are as follows: (in thousands) 2020 $ 37,183 2021 14,034 2022 10,689 2023 6,212 2024 3,264 Total $ 71,382 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | We 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) | 12 Months Ended |
Dec. 31, 2019Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Operating lease right-of-use assets | $ 105,671,000 | $ 90,900,000 | ||
Operating lease liabilities | 109,927,000 | $ 92,500,000 | ||
Impact of ASU 2018-15 adoption | $ 2,500,000 | $ 1,400,000 | $ 2,800,000 | |
Lease license to license revenue | 50.00% | |||
Lease license to maintenance revenue | 50.00% | |||
Amortization of intangible assets | $ 36,900,000 | 40,800,000 | 49,800,000 | |
Provisions for doubtful accounts | 2,928,000 | 1,577,000 | 1,474,000 | |
Net foreign exchange losses | $ (2,500,000) | $ (3,100,000) | $ (1,900,000) | |
Minimum | ||||
Semiconductor product licenses, term | 24 months | |||
Property and equipment, estimated useful lives (years) | 1 year | |||
Finite-lived intangible asset, useful life | 2 years | |||
Maximum | ||||
Semiconductor product licenses, term | 36 months | |||
Property and equipment, estimated useful lives (years) | 40 years | |||
Finite-lived intangible asset, useful life | 17 years | |||
Customer Concentration Risk | ||||
Number of customers with more than five percent of revenue | 0 | 0 | 0 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Summary Of Cash And Cash Equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash accounts, Amount | $ 549,639 | $ 331,084 |
Money market funds, Amount | 322,455 | 446,055 |
Total | $ 872,094 | $ 777,139 |
Cash | ||
Percent Of Cash And Cash Equivalents | 63.00% | 42.60% |
Money Market Funds | ||
Percent Of Cash And Cash Equivalents | 37.00% | 57.40% |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Schedule Of Risk Concentration) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Total | $ 872,094 | $ 777,139 | |
Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Channel partner concentration risk, percentage | 23.00% | 22.00% | 25.00% |
Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents held in excess of deposit insurance, foreign and domestic | $ 855,721 | $ 754,163 | |
Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic | $ 330,551 | $ 452,166 | |
1st Largest Channel Partner | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Channel partner concentration risk, percentage | 4.00% | 4.00% | 5.00% |
2nd Largest Channel Partner | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Channel partner concentration risk, percentage | 2.00% | 2.00% | 2.00% |
United States | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total | $ 626,433 | $ 616,249 | |
Foreign | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total | $ 245,661 | $ 160,890 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Net income | $ 451,295 | $ 419,375 | $ 259,251 |
Weighted average shares outstanding - basic | 84,259 | 83,973 | 84,988 |
Dilutive effect of stock plans | 1,666 | 1,940 | 1,866 |
Weighted average shares outstanding - diluted | 85,925 | 85,913 | 86,854 |
Basic earnings per share | $ 5.36 | $ 4.99 | $ 3.05 |
Diluted earnings per share | $ 5.25 | $ 4.88 | $ 2.98 |
Anti-dilutive shares | 14 | 7 | 84 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Cumulative effect of new accounting principle in period of adoption | $ 183,120 | ||
Lease license to license revenue | 50.00% | ||
Amount of revenue recognized from beginning deferred revenue and backlog | $ 475,900 | $ 387,200 | |
Gross impact | |||
Cumulative effect of new accounting principle in period of adoption | $ 242,400 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Line Items] | |||
Total revenue | $ 1,515,892 | $ 1,293,636 | $ 1,095,250 |
Lease license | |||
Statement [Line Items] | |||
Total revenue | 406,043 | 275,619 | 376,886 |
Perpetual license | |||
Statement [Line Items] | |||
Total revenue | 293,587 | 301,098 | 248,078 |
Software licenses | |||
Statement [Line Items] | |||
Total revenue | 699,630 | 576,717 | 624,964 |
Maintenance | |||
Statement [Line Items] | |||
Total revenue | 760,574 | 676,883 | 440,428 |
Service | |||
Statement [Line Items] | |||
Total revenue | 55,688 | 40,036 | 29,858 |
Maintenance and service | |||
Statement [Line Items] | |||
Total revenue | $ 816,262 | $ 716,919 | $ 470,286 |
Direct revenue, as a percentage of total revenue | |||
Statement [Line Items] | |||
Concentration risk, percentage | 77.10% | 77.60% | 75.20% |
Indirect revenue, as a percentage of total revenue | |||
Statement [Line Items] | |||
Concentration risk, percentage | 22.90% | 22.40% | 24.80% |
Changes in Deferred Revenue (De
Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | $ 343,174 | $ 299,730 |
Acquired deferred revenue | 6,880 | 2,470 |
Deferral of revenue | 1,532,549 | 1,339,964 |
Recognition of deferred revenue | (1,515,892) | (1,293,636) |
Currency translation | (1,437) | (5,354) |
Ending balance | $ 365,274 | $ 343,174 |
Remaining Performance Obligatio
Remaining Performance Obligations, Expected Timing of Satisfaction (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 870,743 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 569,751 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 177,364 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 93,097 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 30,531 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | Nov. 01, 2019 | Feb. 01, 2019 | May 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Total consideration transferred at fair value | $ 1,122,764,000 | |||||
Fair value of common stock issued as consideration in connection with acquisitions | 307,173,000 | $ 0 | $ 0 | |||
Acquisition costs | 6,600,000 | |||||
Uncertain tax positions | 34,296,000 | |||||
Livermore Software Technology Corporation | ||||||
Percentage of shares acquired | 100.00% | |||||
Total consideration transferred at fair value | $ 777,796,000 | |||||
Payments to acquire businesses, gross | $ 470,600,000 | |||||
Business acquisition, equity interest issued or Issuable, number of shares | 1,400 | |||||
Business acquisition, share price | $ 220.74 | |||||
Fair value of common stock issued as consideration in connection with acquisitions | $ 307,173,000 | |||||
Uncertain tax positions | $ 34,039,000 | |||||
Granta Design | ||||||
Percentage of shares acquired | 100.00% | |||||
Total consideration transferred at fair value | $ 208,736,000 | |||||
Payments to acquire businesses, gross | 208,700,000 | |||||
Uncertain tax positions | $ 0 | |||||
OPTIS | ||||||
Percentage of shares acquired | 100.00% | |||||
Total consideration transferred at fair value | $ 290,983,000 | |||||
Payments to acquire businesses, gross | $ 291,000,000 | |||||
Goodwill, period increase (decrease) | 2,600,000 | |||||
Series of Individually Immaterial Business Acquisitions | ||||||
Total consideration transferred at fair value | 136,232,000 | |||||
Payments to acquire businesses, gross | 136,200,000 | $ 67,000,000 | ||||
Uncertain tax positions | $ 257,000 |
Acquisitions Fair Value of Cons
Acquisitions Fair Value of Consideration Transferred 2019 (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Feb. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash | $ 815,591 | ||||
Fair value of common stock issued as consideration in connection with acquisitions | 307,173 | $ 0 | $ 0 | ||
Total consideration transferred at fair value | 1,122,764 | ||||
Livermore Software Technology Corporation | |||||
Cash | $ 470,623 | ||||
Fair value of common stock issued as consideration in connection with acquisitions | 307,173 | ||||
Total consideration transferred at fair value | $ 777,796 | ||||
Granta Design | |||||
Cash | $ 208,736 | ||||
Total consideration transferred at fair value | $ 208,736 | ||||
Other Acquisitions | |||||
Cash | 136,232 | ||||
Total consideration transferred at fair value | $ 136,232 |
Acquisitions Recognized Amounts
Acquisitions Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed 2019 (Details) - USD ($) | Dec. 31, 2019 | Nov. 01, 2019 | Feb. 01, 2019 |
Business Acquisition [Line Items] | |||
Cash | $ 28,395,000 | ||
Accounts receivable and other tangible assets | 38,255,000 | ||
Indemnification asset | 34,039,000 | ||
Accounts payable and other liabilities | (16,860,000) | ||
Deferred revenue | (6,880,000) | ||
Uncertain tax positions | (34,296,000) | ||
Net deferred tax liabilities | (65,712,000) | ||
Total identifiable net assets | 280,993,000 | ||
Goodwill | 841,771,000 | ||
Developed Software and Core Technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 225,163,000 | ||
Customer Lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 61,659,000 | ||
Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 17,230,000 | ||
Livermore Software Technology Corporation | |||
Business Acquisition [Line Items] | |||
Cash | $ 8,520,000 | ||
Accounts receivable and other tangible assets | 20,568,000 | ||
Indemnification asset | 34,039,000 | ||
Accounts payable and other liabilities | (3,721,000) | ||
Deferred revenue | (3,565,000) | ||
Uncertain tax positions | (34,039,000) | ||
Net deferred tax liabilities | (47,596,000) | ||
Total identifiable net assets | 178,406,000 | ||
Goodwill | 599,390,000 | ||
Livermore Software Technology Corporation | Developed Software and Core Technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 167,700,000 | ||
Livermore Software Technology Corporation | Customer Lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 25,900,000 | ||
Livermore Software Technology Corporation | Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 10,600,000 | ||
Granta Design | |||
Business Acquisition [Line Items] | |||
Cash | $ 13,644,000 | ||
Accounts receivable and other tangible assets | 6,941,000 | ||
Indemnification asset | 0 | ||
Accounts payable and other liabilities | (6,714,000) | ||
Deferred revenue | (1,426,000) | ||
Uncertain tax positions | 0 | ||
Net deferred tax liabilities | (9,822,000) | ||
Total identifiable net assets | 59,663,000 | ||
Goodwill | 149,073,000 | ||
Granta Design | Developed Software and Core Technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 32,445,000 | ||
Granta Design | Customer Lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 20,016,000 | ||
Granta Design | Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 4,579,000 | ||
Other Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash | 6,231,000 | ||
Accounts receivable and other tangible assets | 10,746,000 | ||
Indemnification asset | 0 | ||
Accounts payable and other liabilities | (6,425,000) | ||
Deferred revenue | (1,889,000) | ||
Uncertain tax positions | (257,000) | ||
Net deferred tax liabilities | (8,294,000) | ||
Total identifiable net assets | 42,924,000 | ||
Goodwill | 93,308,000 | ||
Other Acquisitions | Developed Software and Core Technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 25,018,000 | ||
Other Acquisitions | Customer Lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 15,743,000 | ||
Other Acquisitions | Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 2,051,000 |
Acquisitions Pro Forma Informat
Acquisitions Pro Forma Information 2019 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 1,515,892 | $ 1,293,636 | $ 1,095,250 |
Operating income | 515,040 | $ 476,574 | $ 390,728 |
2019 Acquisitions | |||
Revenue | 44,079 | ||
Operating income | $ 6,733 |
Fair Value of Consideration Tra
Fair Value of Consideration Transferred 2018 (Details) - USD ($) $ in Thousands | May 02, 2018 | Dec. 31, 2019 |
Cash | $ 1,122,764 | |
OPTIS | ||
Cash | $ 290,983 |
Recognized Amounts of Identifia
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed 2018 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 02, 2018 |
Business Acquisition [Line Items] | ||
Cash | $ 28,395 | |
Accounts receivable and other tangible assets | 38,255 | |
Accounts payable and other liabilities | (16,860) | |
Deferred revenue | (6,880) | |
Net deferred tax liabilities | (65,712) | |
Total identifiable net assets | 280,993 | |
Goodwill | 841,771 | |
Developed Software and Core Technologies | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | 225,163 | |
Customer Lists | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | 61,659 | |
Trade Names | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | $ 17,230 | |
OPTIS | ||
Business Acquisition [Line Items] | ||
Cash | $ 7,957 | |
Accounts receivable and other tangible assets | 15,910 | |
Accounts payable and other liabilities | (11,941) | |
Deferred revenue | (2,470) | |
Net deferred tax liabilities | (23,438) | |
Total identifiable net assets | 85,667 | |
Goodwill | 205,316 | |
OPTIS | Developed Software and Core Technologies | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | 47,597 | |
OPTIS | Customer Lists | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | 41,303 | |
OPTIS | Trade Names | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets | $ 10,749 |
Pro Forma Information 2018 (Det
Pro Forma Information 2018 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 1,515,892 | $ 1,293,636 | $ 1,095,250 |
Operating income (loss) | $ 515,040 | 476,574 | $ 390,728 |
OPTIS | |||
Revenue | 18,532 | ||
Operating income (loss) | $ (5,462) |
Valuation Assumptions and Weigh
Valuation Assumptions and Weighted-Average Useful Life (Details) | May 02, 2018 | Dec. 31, 2019 | Nov. 01, 2019 | Feb. 01, 2019 |
Developed Software and Core Technologies | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Trade Names | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Customer Lists | ||||
Finite-lived intangible asset, useful life | 15 years | |||
Livermore Software Technology Corporation | Developed Software and Core Technologies | ||||
Royalty Rate | 50.00% | |||
Discount Rate | 10.00% | |||
Livermore Software Technology Corporation | Trade Names | ||||
Royalty Rate | 2.00% | |||
Discount Rate | 10.00% | |||
Livermore Software Technology Corporation | Customer Lists | ||||
Discount Rate | 11.00% | |||
Attrition Rate | 10.00% | |||
Granta Design | Developed Software and Core Technologies | ||||
Discount Rate | 12.50% | |||
Granta Design | Trade Names | ||||
Royalty Rate | 2.00% | |||
Discount Rate | 14.00% | |||
Granta Design | Customer Lists | ||||
Discount Rate | 12.50% | |||
Attrition Rate | 10.00% | |||
Granta Design | Minimum | Developed Software and Core Technologies | ||||
Royalty Rate | 8.00% | |||
Granta Design | Maximum | Developed Software and Core Technologies | ||||
Royalty Rate | 10.00% | |||
OPTIS | Developed Software and Core Technologies | ||||
Finite-lived intangible asset, useful life | 10 years | |||
OPTIS | Trade Names | ||||
Finite-lived intangible asset, useful life | 9 years | |||
OPTIS | Customer Lists | ||||
Finite-lived intangible asset, useful life | 12 years |
Other Receivables and Current_3
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | ||
Receivables related to unrecognized revenue | $ 177,679 | $ 167,144 |
Income taxes receivable, including overpayments and refunds | 26,672 | 13,709 |
Prepaid expenses and other current assets | 45,268 | 35,260 |
Total other receivables and current assets | 249,619 | 216,113 |
Consumption, sales and VAT tax liabilities | 36,398 | 24,192 |
Accrued expenses and other current liabilities | 106,549 | 75,367 |
Total other accrued expenses and liabilities | $ 142,947 | $ 99,559 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense related to property and equipment | $ 23.6 | $ 18.4 | $ 17.9 |
Property and Equipment (Compone
Property and Equipment (Components Of Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 212,739 | $ 183,201 |
Less: Accumulated depreciation | (129,103) | (121,546) |
Property and equipment, net | 83,636 | 61,655 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 105,428 | 92,409 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 33,878 | 35,053 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 38,095 | 27,352 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,876 | 15,782 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,766 | 10,846 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,696 | $ 1,759 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 1 year | |
Minimum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 1 year | |
Minimum | Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 1 year | |
Minimum | Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 5 years | |
Minimum | Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 1 year | |
Minimum | Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 1 year | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 40 years | |
Maximum | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 15 years | |
Maximum | Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 5 years | |
Maximum | Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 40 years | |
Maximum | Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 17 years | |
Maximum | Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 13 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 36,900,000 | $ 40,800,000 | $ 49,800,000 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 1,058,951 | $ 756,936 |
Amortized intangible assets, accumulated amortization | (582,597) | (546,021) |
Indefinite-lived trade name | 357 | |
Trade Names | ||
Intangible Assets [Line Items] | ||
Indefinite-lived trade name | 357 | 357 |
Developed Software and Core Technologies | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 635,063 | 410,680 |
Amortized intangible assets, accumulated amortization | (332,622) | (314,730) |
Customer Lists | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 269,629 | 209,031 |
Amortized intangible assets, accumulated amortization | (132,596) | (117,614) |
Trade Names | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 154,259 | 137,225 |
Amortized intangible assets, accumulated amortization | $ (117,379) | $ (113,677) |
Estimated Future Amortization E
Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 54,735 | |
2021 | 53,231 | |
2022 | 53,548 | |
2023 | 52,474 | |
2024 | 50,530 | |
Thereafter | 211,836 | |
Total intangible assets subject to amortization, net | 476,354 | |
Indefinite-lived trade name | 357 | |
Other intangible assets, net | $ 476,711 | $ 211,272 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,572,455 | $ 1,378,553 |
Acquisitions and adjustments | 842,588 | 204,381 |
Currency translation | (1,763) | (10,479) |
Ending balance | $ 2,413,280 | $ 1,572,455 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 322,455 | $ 446,055 |
Short-term investments | 288 | 225 |
Deferred compensation plan investments | 1,110 | 1,646 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 322,455 | 446,055 |
Short-term investments | 0 | 0 |
Deferred compensation plan investments | 1,110 | 1,646 |
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 | 288 | 225 |
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) | 12 Months Ended |
Dec. 31, 2019 | |
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 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Lease cost | $ 26,261 | $ 21,300 | $ 18,400 |
Operating lease, weighted average remaining lease term | 7 years 8 months 12 days | ||
Operating lease, weighted average discount rate, percent | 3.70% | ||
Current portion of operating lease liabilities | $ 18,200 | ||
Operating office lease liabilities that have not yet commenced | $ 16,300 | ||
Lessee, operating lease, lease not yet commenced, term of contract | 7 years 2 months 12 days | ||
Canonsburg Office, New Company Headquarters | Lease Agreement Effective September 14, 2012 | |||
Lessee, Lease, Description [Line Items] | |||
Area of real estate property | ft² | 186,000 | ||
Period of leased property | 183 months | ||
Base rent, years one through five | $ 4,300 | ||
Base rent, years six through ten | 4,500 | ||
Base rent, years eleven through fifteen | $ 4,700 |
Leases Schedule of Lease Cost (
Leases Schedule of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Lease liability cost | $ 22,507 | ||
Variable lease cost not included in the lease liability | 3,754 | ||
Total lease cost | $ 26,261 | $ 21,300 | $ 18,400 |
Leases Lessee, Operating Lease
Leases Lessee, Operating Lease Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ (20,031) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 35,191 |
Leases Schedule of Maturity of
Leases Schedule of Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 21,617 | |
2021 | 19,439 | |
2022 | 16,616 | |
2023 | 12,513 | |
2024 | 12,421 | |
Thereafter | 46,159 | |
Total future lease payments | 128,765 | |
Present value adjustment | (18,838) | |
Present value of future lease payments | $ 109,927 | $ 92,500 |
Leases Schedule of Future Minim
Leases Schedule of Future Minimum Rental Payments for Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 16,354 |
2020 | 12,469 |
2021 | 10,177 |
2022 | 8,523 |
2023 | 6,809 |
Thereafter | 14,267 |
Future minimum lease payments | $ 68,599 |
Debt (Detail)
Debt (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Nov. 01, 2019 | |
Line of Credit Facility [Line Items] | ||
Weighted-average interest rate at a point in time | 2.964% | |
Consolidated leverage ratio | 3.50 | |
Consolidated leverage ratio increased | 4 | |
Qualified acquisition amount | $ 250,000,000 | |
Outstanding borrowings under the credit agreement | 0 | |
Term loan | $ 498,500,000 | $ 500,000,000 |
Term loan principal repayment rate, initial | 1.25% | |
Term loan principal repayment rate, increased | 2.50% | |
Unamortized debt issuance cost | $ 1,500,000 | |
Current portion of long-term debt | 75,000,000 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |
Base Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on federal funds rate | 0.50% | |
Debt instrument, basis spread on eurodollar rate | 1.00% | |
Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.125% | |
Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.75% | |
Eurodollar | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.125% | |
Eurodollar | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.75% |
Schedule of Maturities of Debt
Schedule of Maturities of Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 25,000 |
2023 | 50,000 |
2024 | 425,000 |
Total | $ 500,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | 27 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||
Federal statutory tax rate | 21.00% | 21.00% | 35.00% | |
Effective income tax rate reconciliation, change in enacted tax rate, amount | $ 1,900,000 | |||
Effective income tax rate reconciliation, repatriation of foreign earnings, amount | $ (1,800,000) | $ 900,000 | 16,000,000 | $ 15,100,000 |
Cumulative temporary difference, permanently reinvested earnings | (32,800,000) | |||
Foreign earnings repatriated | 144,300,000 | |||
Valuation allowance, deferred tax asset, increase (decrease), amount | (4,200,000) | |||
Effective income tax rate reconciliation, GILTI, amount | 600,000 | 400,000 | ||
Valuation allowance, deferred taxes, released | 6,700,000 | |||
Deferred tax assets, valuation allowance | 17,524,000 | 21,676,000 | 17,524,000 | |
Deferred tax assets, operating loss carryforwards, state and local | 300,000 | 300,000 | ||
Tax credit carryforwards | 4,100,000 | 4,100,000 | ||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 8,300,000 | 8,300,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 47,300,000 | 47,300,000 | ||
Penalty expense | 500,000 | 800,000 | 1,100,000 | |
Interest (income) expense | (100,000) | (100,000) | $ 400,000 | |
Liability for penalties | 11,700,000 | 4,700,000 | 11,700,000 | |
Liability for interest | 6,600,000 | $ 4,000,000 | 6,600,000 | |
Subject To Expiration | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforwards | 3,500,000 | 3,500,000 | ||
Subject To Utilization Limitations | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforwards | 1,200,000 | 1,200,000 | ||
Not Subject To Expiration | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforwards | 600,000 | 600,000 | ||
Foreign Country | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | 142,000,000 | 142,000,000 | ||
Federal Domestic | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | 4,200,000 | 4,200,000 | ||
Operating Loss Carryforward With No Expiration Date | Foreign Country | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | 113,200,000 | 113,200,000 | ||
Subject To Expiration | Foreign Country | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | $ 28,800,000 | $ 28,800,000 | ||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Effective income tax rate reconciliation, deduction, percent | 50.00% |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 448,271 | $ 455,478 | $ 344,447 |
Foreign | 74,312 | 31,607 | 51,247 |
Income before income tax provision | $ 522,583 | $ 487,085 | $ 395,694 |
Income Taxes (Components Of Pro
Income Taxes (Components Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 44,824 | $ 58,138 | $ 112,414 |
Current, State | 9,554 | 12,888 | 7,879 |
Current, Foreign | 31,421 | 30,359 | 18,843 |
Deferred, Federal | (8,833) | (20,764) | (7,387) |
Deferred, State | (965) | (2,901) | (584) |
Deferred, Foreign | (4,713) | (10,010) | 5,278 |
Total | $ 71,288 | $ 67,710 | $ 136,443 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of U.S. Federal Statutory Tax Rate To Consolidated Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 1.50% | 1.50% | 1.10% |
Foreign rate differential | 0.80% | 0.80% | 0.10% |
Uncertain tax positions | (0.20%) | 0.50% | 0.30% |
U.S. tax reform enactment | (0.40%) | 0.20% | 4.50% |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, percent | (1.30%) | 0.00% | 0.00% |
Domestic production activity benefit | 0.00% | 0.00% | (2.60%) |
Benefit from entity restructuring | 0.00% | (1.40%) | 0.00% |
Research and development credits | (2.20%) | (2.30%) | (1.40%) |
Stock-based compensation | (3.10%) | (3.30%) | (3.10%) |
Foreign-derived intangible income deduction | (3.80%) | (3.90%) | 0.00% |
Other | 1.30% | 0.80% | 0.60% |
Consolidated effective tax rate | 13.60% | 13.90% | 34.50% |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 35,044 | $ 39,290 |
Operating lease liabilities | 26,628 | 0 |
Stock-based compensation | 24,254 | 20,464 |
Uncertain tax positions | 19,227 | 17,823 |
Employee benefits | 9,392 | 15,048 |
Research and development credits | 5,865 | 5,951 |
Other | 6,309 | 4,121 |
Valuation allowance | (17,524) | (21,676) |
Deferred tax assets | 109,195 | 81,021 |
Other intangible assets | (99,193) | (38,787) |
Operating lease right-of-use assets | (25,648) | 0 |
Accounting method change | (21,396) | (31,626) |
Deferred revenue | (13,744) | (12,021) |
Property and equipment | (3,780) | (2,034) |
Deferred tax liabilities | (163,761) | (84,468) |
Net deferred tax liabilities | $ (54,566) | $ (3,447) |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit as of January 1 | $ 22,827 | $ 19,657 | $ 15,209 |
Gross increases-acquisitions | 26,914 | 0 | 0 |
Gross increases-tax positions in prior period | 207 | 1,229 | 905 |
Gross decreases-tax positions in prior period | (1,743) | (376) | (765) |
Gross increases-tax positions in current period | 3,563 | 4,014 | 3,757 |
Reductions due to a lapse of the applicable statute of limitations | (2,230) | (994) | (847) |
Changes due to currency fluctuation | (453) | (703) | |
Changes due to currency fluctuation | 1,414 | ||
Settlements | 0 | 0 | (16) |
Unrecognized tax benefit as of December 31 | $ 49,085 | $ 22,827 | $ 19,657 |
Pension And Profit-Sharing Pl_2
Pension And Profit-Sharing Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Total unfunded portion of the defined benefit obligations | $ 11.2 | ||
Expenses related to retirement programs | $ 16.3 | $ 12.4 | $ 10.1 |
Four Zero One K Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contributions per employee, percent | 4.25% | ||
Minimum working hours per employee required to be eligible for discretionary contribution | 1000 hours | ||
First Three Percent Of Employee Pay | Four Zero One K Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee contribution employer matches | 100.00% | ||
Percentage of employee pay employer matches | 3.00% | ||
More Than Three Percent Up To Eight Percent Of Employee Pay | Four Zero One K Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of employee contribution employer matches | 25.00% | ||
Percentage of employee pay employer matches | 5.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares authorized for grant under the plan | 39,800,000 | ||
Percentage of voting interest to be held by optionee | 10.00% | ||
Exercise price as a percentage of fair value at the time of grant | 110.00% | ||
Maximum months after sale event where awards fully vest when service relationship terminated without cause | 18 months | ||
Minimum number of days that may be granted to terminated employee to exercise awards prior to termination | 15 days | ||
Restricted stock granted | 843,000 | 681,000 | 866,000 |
Stock-based compensation expense | $ 116,190,000 | $ 83,346,000 | $ 53,154,000 |
Employee Stock Option | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total unrecognized estimated unvested stock option compensation cost | $ 1,000,000 | ||
Weighted-average period of recognition of unrecognized compensation cost (years) | 1 year | ||
Performance Shares | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 3 years | ||
RSU grant date fair value | $ 238.99 | $ 191.76 | $ 120.94 |
Restricted Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 109,900,000 | $ 77,400,000 | $ 46,300,000 |
Director Restricted Stock Units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock granted | 11,259 | 13,632 | 18,018 |
RSU grant date fair value | $ 187.53 | $ 165.71 | $ 123.38 |
Stock-based compensation expense | $ 2,500,000 | $ 2,300,000 | $ 2,600,000 |
Market and Service Condition Stock Units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 3 years | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 3 years | ||
Maximum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expiration period of options from the date of grant | 10 years | ||
Expiration period for optionee who meets the 10% criteria | 5 years | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 4 years | ||
ANSYS 1996 Employee Stock Purchase Plan | Employee Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares authorized for grant under the plan | 1,800,000 | ||
Expiration period of options from the date of grant | 6 months | ||
Share-based compensation arrangement by share-based payment award, maximum employee subscription rate | 10.00% | ||
Share-based compensation arrangement by share-based payment award, maximum number of shares per employee | 3,840 | ||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 90.00% | ||
Share-based compensation arrangement by share-based payment award, maximum dollar amount of common stock purchasable in a calendar year | $ 25,000 | ||
Share-based compensation arrangement by share-based payment award, shares issued as of date | 1,600,000 | ||
Stock-based compensation expense | $ 2,000,000 | $ 1,800,000 | $ 1,200,000 |
ANSYS 1996 Employee Stock Purchase Plan | Maximum | Employee Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, eligibility, ownership percentage | 5.00% |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 116,190 | $ 83,346 | $ 53,154 |
Related income tax benefits | (47,454) | (34,518) | (20,503) |
Stock-based compensation expense, net of taxes | $ 68,736 | $ 48,828 | $ 32,651 |
Basic earnings per share | $ (0.82) | $ (0.58) | $ (0.38) |
Diluted earnings per share | $ (0.80) | $ (0.57) | $ (0.38) |
Software Licenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 0 | $ 0 | $ 969 |
Maintenance and service | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | 8,494 | 5,224 | 2,533 |
Selling, General And Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | 60,639 | 47,099 | 30,817 |
Research And Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 47,057 | $ 31,023 | $ 18,835 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Options) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning of year, Weighted-Average Exercise Price | $ 62.80 | $ 59.17 | $ 56.37 |
Granted, Weighted-Average Exercise Price | 0 | 0 | 0 |
Exercised, Weighted-Average Exercise Price | 53.53 | 50.92 | 49.78 |
Forfeited, Weighted-Average Exercise Price | 64.21 | 86.28 | 80.92 |
Outstanding, end of year, Weighted-Average Exercise Price | 67.49 | 62.80 | 59.17 |
Vested and Exercisable, end of year, Weighted-Average Exercise Price | 65.71 | 59.69 | 55.11 |
Nonvested, Weighted-Average Exercise Price | $ 94.77 | $ 93.44 | $ 91.71 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of year, Options | 1,484 | 2,170 | 3,136 |
Granted, Options | 0 | 0 | 0 |
Exercised, Options | (495) | (679) | (956) |
Forfeited, Options | (5) | (7) | (10) |
Outstanding, end of year, Options | 984 | 1,484 | 2,170 |
Vested and Exercisable, end of year, Options | 924 | 1,347 | 1,930 |
Nonvested, Options | 60 | 137 | 240 |
Outstanding, Weighted-Average Remaining Contractual Term (in years) | 3 years 2 months 4 days | 3 years 6 months 18 days | 4 years 1 month 6 days |
Vested and Exercisable, Weighted-Average Remaining Contractual Term (in years) | 2 years 11 months 12 days | 3 years 1 month 20 days | 3 years 6 months 25 days |
Nonvested, Weighted-Average Remaining Contractual Term (in years) | 6 years 8 months 15 days | 7 years 7 months 6 days | 8 years 3 months 18 days |
Exercised, Aggregate Intrinsic Value | $ 72,098 | $ 78,648 | $ 58,472 |
Outstanding, Aggregate Intrinsic Value | 186,926 | 118,908 | 191,895 |
Vested and Exercisable, Aggregate Intrinsic Value | 177,111 | 112,133 | 178,456 |
Nonvested, Aggregate Intrinsic Value | 9,815 | 6,775 | 13,439 |
Compensation Expense - Stock Options (in thousands) | $ 1,709 | $ 2,006 | $ 2,948 |
Stock-Based Compensation (Infor
Stock-Based Compensation (Information Regarding Stock Options Outstanding) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
$11.99 - $48.97 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | $ 11.99 |
Range of Exercise Prices, Upper Limit | $ 48.97 |
Options Outstanding, Options | shares | 181 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 1 year 3 days |
Options Outstanding, Weighted-Average Exercise Price | $ 43.29 |
Options Exercisable, Options | shares | 181 |
Options Exercisable, Weighted-Average Remaining Contractual Life (years) | 1 year 3 days |
Options Exercisable, Weighted-Average Exercise Price | $ 43.29 |
Options Unvested, Options | shares | 0 |
Options Unvested, Weighted-Average Remaining Contractual Life (years) | 0 years |
Options Unvested, Weighted-Average Exercise Price | $ 0 |
$58.67 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 58.67 |
Range of Exercise Prices, Upper Limit | $ 58.67 |
Options Outstanding, Options | shares | 267 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 1 year 10 months 13 days |
Options Outstanding, Weighted-Average Exercise Price | $ 58.67 |
Options Exercisable, Options | shares | 267 |
Options Exercisable, Weighted-Average Remaining Contractual Life (years) | 1 year 10 months 13 days |
Options Exercisable, Weighted-Average Exercise Price | $ 58.67 |
Options Unvested, Options | shares | 0 |
Options Unvested, Weighted-Average Remaining Contractual Life (years) | 0 years |
Options Unvested, Weighted-Average Exercise Price | $ 0 |
$67.44 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 67.44 |
Range of Exercise Prices, Upper Limit | $ 67.44 |
Options Outstanding, Options | shares | 280 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 2 years 10 months 13 days |
Options Outstanding, Weighted-Average Exercise Price | $ 67.44 |
Options Exercisable, Options | shares | 280 |
Options Exercisable, Weighted-Average Remaining Contractual Life (years) | 2 years 10 months 13 days |
Options Exercisable, Weighted-Average Exercise Price | $ 67.44 |
Options Unvested, Options | shares | 0 |
Options Unvested, Weighted-Average Remaining Contractual Life (years) | 0 years |
Options Unvested, Weighted-Average Exercise Price | $ 0 |
$76.31 - $95.09 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 76.31 |
Range of Exercise Prices, Upper Limit | $ 95.09 |
Options Outstanding, Options | shares | 256 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 6 years 5 months 8 days |
Options Outstanding, Weighted-Average Exercise Price | $ 93.89 |
Options Exercisable, Options | shares | 196 |
Options Exercisable, Weighted-Average Remaining Contractual Life (years) | 6 years 4 months 9 days |
Options Exercisable, Weighted-Average Exercise Price | $ 93.62 |
Options Unvested, Options | shares | 60 |
Options Unvested, Weighted-Average Remaining Contractual Life (years) | 6 years 8 months 15 days |
Options Unvested, Weighted-Average Exercise Price | $ 94.77 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions To Estimate Fair Value Of Stock Awards) (Details) - Restricted Stock Unit Compensation Expense - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.50% | 2.40% | 1.50% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 2 years 9 months 18 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
Correlation factor | 0.71 | 0.65 | 0.70 |
Weighted average fair value per share | $ 238.99 | $ 191.76 | $ 120.94 |
Ansys Stock Price | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility | 23.00% | 21.00% | 19.00% |
Nasdaq Composite Index | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility | 16.00% | 15.00% | 15.00% |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Restricted Stock Units) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of year, RSUs | 1,522 | 1,361 | 906 |
Granted, RSUs | 843 | 681 | 866 |
Performance adjustment, RSUs | 74 | 76 | 35 |
Vested, RSUs | (704) | (524) | (341) |
Forfeited, RSUs | (117) | (72) | (105) |
Nonvested, end of year, RSUs | 1,618 | 1,522 | 1,361 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested, beginning of year, Weighted-Average Grant Date Fair Value, RSUs | $ 129.96 | $ 100.66 | $ 86.45 |
Granted, Weighted-Average Grant Date Fair Value, RSUs | 192.37 | 163.67 | 109.67 |
Performance adjustment, Weighted-Average Grant Date Fair Value, RSUs | 167.87 | 151.52 | 98.29 |
Vested, Weighted-Average Grant Date Fair Value, RSUs | 125.84 | 101.38 | 88.58 |
Forfeited, Weighted-Average Grant Date Fair Value, RSUs | 140.43 | 125.29 | 90.80 |
Nonvested, end of year, Weighted-Average Grant Date Fair Value, RSUs | $ 165.26 | $ 129.96 | $ 100.66 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary of Deferred Stock Awards to Non-Employee Directors) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Deferred awards outstanding, beginning of year | 132,699 |
Shares diversified | 0 |
Shares issued upon retirement | (67,020) |
Deferred awards outstanding, end of year | 65,679 |
Diversified Deferred Stock Award | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Deferred awards outstanding, beginning of year | 12,250 |
Shares diversified | 13,348 |
Shares issued upon retirement | (20,000) |
Deferred awards outstanding, end of year | 5,598 |
Undiversified Deferred Stock Award | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Deferred awards outstanding, beginning of year | 120,449 |
Shares diversified | (13,348) |
Shares issued upon retirement | (47,020) |
Deferred awards outstanding, end of year | 60,081 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock Disclosures [Abstract] | |||
Number of shares repurchased | 330 | 1,674 | 2,750 |
Average price paid per share | $ 179.41 | $ 161.12 | $ 122.20 |
Total cost | $ 59,116 | $ 269,801 | $ 336,042 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) | Dec. 31, 2019shares |
Class of Stock Disclosures [Abstract] | |
Stock repurchase program, number of shares authorized to be repurchased | 5,000,000 |
Stock repurchase program, remaining number of shares authorized to be repurchased | 3,500,000 |
Royalty Agreements (Details)
Royalty Agreements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of goods and services sold | $ 166,273,000 | $ 155,885,000 | $ 150,164,000 |
Royalty | |||
Cost of goods and services sold | $ 22,400,000 | $ 16,900,000 | $ 16,000,000 |
Revenue by Geographic Area (Det
Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 1,515,892 | $ 1,293,636 | $ 1,095,250 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 637,916 | 506,335 | 417,343 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 162,154 | 145,951 | 126,097 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 158,809 | 140,506 | 108,211 |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 90,082 | 72,724 | 63,011 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 68,551 | 67,657 | 53,672 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 64,725 | 57,567 | 54,415 |
Other EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 211,193 | 193,317 | 166,472 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 122,462 | $ 109,579 | $ 106,029 |
Property and Equipment by Geogr
Property and Equipment by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 83,636 | $ 61,655 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 59,473 | 46,605 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 5,660 | 4,176 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 4,237 | 2,158 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 4,194 | 1,238 |
Other EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 5,532 | 3,724 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 4,540 | $ 3,754 |
Unconditional Purchase Obliga_3
Unconditional Purchase Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |||
Unconditional purchase obligations, beginning of year | $ 24,200 | $ 22,400 | $ 14,100 |
Future expenditures under purchase obligations, next twelve months | 37,183 | ||
Future expenditures under purchase obligations, year two | 14,034 | ||
Future expenditures under purchase obligations, year three | 10,689 | ||
Future expenditures under purchase obligations, year four | 6,212 | ||
Future expenditures under purchase obligations, year five | 3,264 | ||
Future expenditures under purchase obligations | $ 71,382 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 331 | $ 1,435 | $ 6,176 | $ 2,355 | $ 10,297 |
Operating Income (Loss) | |||||
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 | Dec. 31, 2019USD ($) |
India Service Tax Audit | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 7.2 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Provisions for doubtful accounts | $ 2,928 | $ 1,577 | $ 1,474 |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 8,000 | 6,800 | 5,700 |
Provisions for doubtful accounts | 2,928 | 1,577 | 1,474 |
Deductions - returns and write-offs | 2,228 | 377 | 374 |
Balance at end of year | $ 8,700 | $ 8,000 | $ 6,800 |
Uncategorized Items - anss20191
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 183,120,000 |