Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 0-20853 | |
Entity Registrant Name | ANSYS, Inc. | |
Entity Central Index Key | 0001013462 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
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 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 Common Stock, Shares Outstanding | 87,252,523 | |
The Nasdaq Global Select Market | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | ANSS | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 957,704 | $ 912,672 |
Short-term investments | 504 | 479 |
Accounts receivable, less allowance for doubtful accounts of $14,600 and $14,000, respectively | 449,664 | 537,564 |
Other receivables and current assets | 214,492 | 268,522 |
Total current assets | 1,622,364 | 1,719,237 |
Long-term assets: | ||
Property and equipment, net | 91,872 | 96,503 |
Operating lease right-of-use assets | 125,323 | 137,730 |
Goodwill | 3,110,736 | 3,038,306 |
Other intangible assets, net | 689,398 | 694,865 |
Other long-term assets | 228,207 | 225,119 |
Deferred income taxes | 22,872 | 28,830 |
Total long-term assets | 4,268,408 | 4,221,353 |
Total assets | 5,890,772 | 5,940,590 |
Current liabilities: | ||
Accounts payable | 9,608 | 18,691 |
Accrued bonuses and commissions | 51,856 | 112,491 |
Accrued income taxes | 8,980 | 26,116 |
Other accrued expenses and liabilities | 186,545 | 199,466 |
Deferred revenue | 338,396 | 372,061 |
Total current liabilities | 595,385 | 728,825 |
Long-term liabilities: | ||
Deferred income taxes | 103,649 | 110,321 |
Long-term operating lease liabilities | 108,207 | 120,940 |
Long-term debt | 753,327 | 798,118 |
Other long-term liabilities | 79,986 | 84,514 |
Total long-term liabilities | 1,045,169 | 1,113,893 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 2,000,000 shares authorized; zero shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 300,000,000 shares authorized; 95,267,307 and 95,266,320 shares issued, respectively | 953 | 953 |
Additional paid-in capital | 1,381,590 | 1,434,203 |
Retained earnings | 3,970,707 | 3,804,593 |
Treasury stock, at cost: 8,066,350 and 8,693,809 shares, respectively | (1,070,210) | (1,124,102) |
Accumulated other comprehensive loss | (32,822) | (17,775) |
Total stockholders' equity | 4,250,218 | 4,097,872 |
Total liabilities and stockholders' equity | $ 5,890,772 | $ 5,940,590 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 14,600 | $ 14,000 |
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 | 95,267,307 | 95,266,320 |
Treasury stock, shares | 8,066,350 | 8,693,809 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 446,654 | $ 385,661 | $ 809,880 | $ 690,646 |
Cost of sales: | ||||
Amortization | 15,025 | 9,764 | 29,974 | 19,316 |
Total cost of sales | 64,158 | 53,860 | 126,261 | 103,976 |
Gross profit | 382,496 | 331,801 | 683,619 | 586,670 |
Operating expenses: | ||||
Selling, general and administrative | 160,410 | 128,698 | 306,625 | 259,220 |
Research and development | 100,879 | 86,133 | 201,358 | 172,245 |
Amortization | 4,434 | 4,163 | 8,841 | 8,325 |
Total operating expenses | 265,723 | 218,994 | 516,824 | 439,790 |
Operating income | 116,773 | 112,807 | 166,795 | 146,880 |
Interest income | 486 | 934 | 1,003 | 3,709 |
Interest expense | (3,336) | (3,040) | (6,651) | (6,691) |
Other income, net | 14,937 | 1,884 | 15,336 | 2,011 |
Income before income tax provision | 128,860 | 112,585 | 176,483 | 145,909 |
Income tax provision | 35,144 | 16,021 | 10,369 | 3,281 |
Net income | $ 93,716 | $ 96,564 | $ 166,114 | $ 142,628 |
Earnings per share – basic: | ||||
Earnings per share | $ 1.08 | $ 1.13 | $ 1.91 | $ 1.66 |
Weighted average shares | 87,168 | 85,651 | 86,988 | 85,724 |
Earnings per share – diluted: | ||||
Earnings per share | $ 1.06 | $ 1.11 | $ 1.89 | $ 1.64 |
Weighted average shares | 88,053 | 86,934 | 88,019 | 87,152 |
Software licenses | ||||
Revenue: | ||||
Total revenue | $ 214,822 | $ 169,341 | $ 347,426 | $ 257,171 |
Cost of sales: | ||||
Total cost of sales | 8,065 | 8,511 | 15,671 | 13,437 |
Maintenance and service | ||||
Revenue: | ||||
Total revenue | 231,832 | 216,320 | 462,454 | 433,475 |
Cost of sales: | ||||
Total cost of sales | $ 41,068 | $ 35,585 | $ 80,616 | $ 71,223 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income | $ 93,716 | $ 96,564 | $ 166,114 | $ 142,628 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 4,217 | 10,288 | (15,047) | (14,004) |
Comprehensive income | $ 97,933 | $ 106,852 | $ 151,067 | $ 128,624 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 166,114 | $ 142,628 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and intangible assets amortization | 54,146 | 41,356 |
Operating lease right-of-use assets expense | 11,100 | 10,216 |
Deferred income tax benefit | (9,110) | (15,684) |
Provision for bad debts | 660 | 5,672 |
Stock-based compensation expense | 78,004 | 65,071 |
Gain on equity investment | (15,139) | 0 |
Other | 1,212 | 2,099 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 92,170 | 79,444 |
Other receivables and current assets | 54,554 | 44,377 |
Other long-term assets | (1,743) | (9,280) |
Accounts payable, accrued expenses and current liabilities | (86,276) | (88,099) |
Accrued income taxes | (17,947) | 19,576 |
Deferred revenue | (28,792) | (25,678) |
Other long-term liabilities | (8,969) | 7,306 |
Net cash provided by operating activities | 289,984 | 279,004 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (105,192) | (100,194) |
Capital expenditures | (10,835) | (16,967) |
Other investing activities | (297) | (2,405) |
Net cash used in investing activities | (116,324) | (119,566) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | (45,000) | (75,000) |
Purchase of treasury stock | 0 | (161,029) |
Restricted stock withholding taxes paid in lieu of issued shares | (90,697) | (65,396) |
Proceeds from shares issued for stock-based compensation | 13,644 | 15,874 |
Other financing activities | (50) | 0 |
Net cash used in financing activities | (122,103) | (285,551) |
Effect of exchange rate fluctuations on cash and cash equivalents | (6,525) | (1,435) |
Net increase (decrease) in cash and cash equivalents | 45,032 | (127,548) |
Cash and cash equivalents, beginning of period | 912,672 | 872,094 |
Cash and cash equivalents, end of period | 957,704 | 744,546 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 39,325 | 13,483 |
Interest paid | $ 6,024 | $ 8,412 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Livermore Software Technology Corporation | Analytical Graphics, Inc. | Common Stock | Common StockAnalytical Graphics, Inc. | Additional Paid-In Capital | Additional Paid-In CapitalLivermore Software Technology Corporation | Additional Paid-In CapitalAnalytical Graphics, Inc. | Retained Earnings | Treasury Stock | Treasury StockLivermore Software Technology Corporation | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance at Dec. 31, 2019 | $ 3,453,379 | $ 946 | $ 1,188,939 | $ 3,370,706 | $ (1,041,831) | $ (65,381) | ||||||
Beginning balance, shares at Dec. 31, 2019 | 94,628 | 8,893 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury shares acquired | (161,029) | $ (161,029) | ||||||||||
Treasury shares acquired, shares | 690 | |||||||||||
Stock-based compensation activity | (21,772) | (70,769) | $ 48,997 | |||||||||
Stock-based compensation activity, shares | (541) | |||||||||||
Other comprehensive (loss)/income | (24,292) | (24,292) | ||||||||||
Net income | 46,064 | 46,064 | ||||||||||
Ending balance at Mar. 31, 2020 | 3,292,350 | $ 946 | 1,118,170 | 3,416,770 | $ (1,153,863) | (89,673) | ||||||
Ending balance, shares at Mar. 31, 2020 | 94,628 | 9,042 | ||||||||||
Beginning balance at Dec. 31, 2019 | 3,453,379 | $ 946 | 1,188,939 | 3,370,706 | $ (1,041,831) | (65,381) | ||||||
Beginning balance, shares at Dec. 31, 2019 | 94,628 | 8,893 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury shares acquired | $ (161,029) | |||||||||||
Treasury shares acquired, shares | 690 | |||||||||||
Net income | $ 142,628 | |||||||||||
Ending balance at Jun. 30, 2020 | 3,438,048 | $ 946 | 1,144,193 | 3,513,334 | $ (1,141,040) | (79,385) | ||||||
Ending balance, shares at Jun. 30, 2020 | 94,628 | 8,890 | ||||||||||
Beginning balance at Mar. 31, 2020 | 3,292,350 | $ 946 | 1,118,170 | 3,416,770 | $ (1,153,863) | (89,673) | ||||||
Beginning balance, shares at Mar. 31, 2020 | 94,628 | 9,042 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Acquisition activity | $ 1,531 | $ 1,030 | $ 501 | |||||||||
Acquisition activity, treasury shares | (6) | |||||||||||
Stock-based compensation activity | 37,315 | 24,993 | $ 12,322 | |||||||||
Stock-based compensation activity, shares | (146) | |||||||||||
Other comprehensive (loss)/income | 10,288 | 10,288 | ||||||||||
Net income | 96,564 | 96,564 | ||||||||||
Ending balance at Jun. 30, 2020 | 3,438,048 | $ 946 | 1,144,193 | 3,513,334 | $ (1,141,040) | (79,385) | ||||||
Ending balance, shares at Jun. 30, 2020 | 94,628 | 8,890 | ||||||||||
Beginning balance at Dec. 31, 2020 | 4,097,872 | $ 953 | 1,434,203 | 3,804,593 | $ (1,124,102) | (17,775) | ||||||
Beginning balance, shares at Dec. 31, 2020 | 95,266 | 8,694 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock-based compensation activity | (39,037) | (87,602) | $ 48,565 | |||||||||
Stock-based compensation activity, shares | (565) | |||||||||||
Other comprehensive (loss)/income | (19,264) | (19,264) | ||||||||||
Net income | 72,398 | 72,398 | ||||||||||
Ending balance at Mar. 31, 2021 | 4,111,969 | $ 953 | 1,346,601 | 3,876,991 | $ (1,075,537) | (37,039) | ||||||
Ending balance, shares at Mar. 31, 2021 | 95,266 | 8,129 | ||||||||||
Beginning balance at Dec. 31, 2020 | 4,097,872 | $ 953 | 1,434,203 | 3,804,593 | $ (1,124,102) | (17,775) | ||||||
Beginning balance, shares at Dec. 31, 2020 | 95,266 | 8,694 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury shares acquired | $ 0 | |||||||||||
Treasury shares acquired, shares | 0 | |||||||||||
Net income | $ 166,114 | |||||||||||
Ending balance at Jun. 30, 2021 | 4,250,218 | $ 953 | 1,381,590 | 3,970,707 | $ (1,070,210) | (32,822) | ||||||
Ending balance, shares at Jun. 30, 2021 | 95,267 | 8,066 | ||||||||||
Beginning balance at Mar. 31, 2021 | 4,111,969 | $ 953 | 1,346,601 | 3,876,991 | $ (1,075,537) | (37,039) | ||||||
Beginning balance, shares at Mar. 31, 2021 | 95,266 | 8,129 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Acquisition activity | $ 328 | $ 328 | ||||||||||
Acquisition activity, common shares | 1 | |||||||||||
Stock-based compensation activity | 39,988 | 34,661 | $ 5,327 | |||||||||
Stock-based compensation activity, shares | (63) | |||||||||||
Other comprehensive (loss)/income | 4,217 | 4,217 | ||||||||||
Net income | 93,716 | 93,716 | ||||||||||
Ending balance at Jun. 30, 2021 | $ 4,250,218 | $ 953 | $ 1,381,590 | $ 3,970,707 | $ (1,070,210) | $ (32,822) | ||||||
Ending balance, shares at Jun. 30, 2021 | 95,267 | 8,066 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ANSYS, Inc. (Ansys, we, us, our) develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia, including aerospace and defense, automotive, electronics, semiconductors, energy, turbomachinery, consumer products, and healthcare. 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. The COVID-19 pandemic has had, and may continue to have, an impact on our business and employees, particularly as new variants emerge. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information for commercial and industrial companies, the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Form 10-K). The condensed consolidated December 31, 2020 balance sheet presented is derived from the audited December 31, 2020 balance sheet included in the 2020 Form 10-K. In our opinion, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for any future period. Recently Adopted Accounting Guidance Income taxes: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 eliminated 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 clarified and simplified other aspects of the accounting for income taxes. We adopted ASU 2019-12 on January 1, 2021 with no material impact to our condensed consolidated financial statements. 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: June 30, 2021 December 31, 2020 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 556,074 58.1 $ 571,587 62.6 Money market funds 401,630 41.9 341,085 37.4 Total $ 957,704 $ 912,672 Our money market fund balances are held in various funds of two issuers. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes revenue: Three Months Ended Six Months Ended (in thousands, except percentages) June 30, June 30, June 30, June 30, Revenue: Lease licenses $ 129,794 $ 113,209 $ 194,871 $ 158,083 Perpetual licenses 85,028 56,132 152,555 99,088 Software licenses 214,822 169,341 347,426 257,171 Maintenance 218,297 203,179 431,971 403,667 Service 13,535 13,141 30,483 29,808 Maintenance and service 231,832 216,320 462,454 433,475 Total revenue $ 446,654 $ 385,661 $ 809,880 $ 690,646 Direct revenue, as a percentage of total revenue 75.4 % 78.1 % 73.8 % 76.2 % Indirect revenue, as a percentage of total revenue 24.6 % 21.9 % 26.2 % 23.8 % 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 six months ended June 30, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 388,810 $ 365,274 Acquired deferred revenue 746 1,405 Deferral of revenue 777,714 661,790 Recognition of revenue (809,880) (690,646) Currency translation (5,792) (1,635) Ending balance – June 30 $ 351,598 $ 336,188 Total revenue allocated to remaining performance obligations as of June 30, 2021 will be recognized as revenue as follows: (in thousands) Next 12 months $ 597,173 Months 13-24 177,100 Months 25-36 83,608 Thereafter 69,218 Total revenue allocated to remaining performance obligations $ 927,099 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 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the six months ended June 30, 2021 we completed several acquisitions to expand our solution offerings and enhance our customers' experience. The effects of the acquisitions were not material to our condensed consolidated results of operations individually or in the aggregate. The combined purchase price of the acquisitions during the six months ended June 30, 2021 was approximately $110.8 million, which was paid in cash. 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 value of consideration transferred and the fair values of identified assets acquired and liabilities assumed for the combined acquisitions at each respective date of acquisition: Fair Value of Consideration Transferred: (in thousands) Cash $ 110,790 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 4,320 Accounts receivable and other tangible assets 2,854 Developed software and core technologies (12 year weighted-average life) 32,200 Customer lists (9 year weighted-average life) 2,300 Trade names (10 year weighted-average life) 1,000 Accounts payable and other liabilities (2,834) Deferred revenue (746) Net deferred tax liabilities (7,311) Total identifiable net assets $ 31,783 Goodwill $ 79,007 The goodwill, which is not tax-deductible, is attributed to intangible assets that do not qualify for separate recognition, including the assembled workforces of the acquired businesses 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 each respective acquisition date is obtained during the measurement period (up to one year from the acquisition date). On December 1, 2020, we acquired 100% of the shares of Analytical Graphics, Inc. (AGI), a premier provider of mission-simulation, modeling, testing and analysis software for aerospace, defense and intelligence applications. The acquisition expands the scope of our offerings, empowering users to solve challenges by simulating from the chip level all the way to a customer's entire mission. The purchase price was approximately $720.6 million, inclusive of net working capital adjustments. On April 1, 2020, we acquired 100% of the shares of Lumerical Inc. (Lumerical), a leading developer of photonic design and simulation tools, for a purchase price of approximately $107.5 million, which was paid in cash. The acquisition adds best-in-class photonic products to our multiphysics portfolio, providing customers with a full set of solutions to solve their next-generation product challenges. The operating results of each acquisition have been included in our condensed consolidated financial statements since each respective date of acquisition. |
Other Receivables and Current A
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
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: (in thousands) June 30, December 31, Receivables related to unrecognized revenue $ 113,354 $ 192,154 Income taxes receivable, including overpayments and refunds 45,879 31,628 Prepaid expenses and other current assets 55,259 44,740 Total other receivables and current assets $ 214,492 $ 268,522 Accrued vacation 41,656 34,132 Consumption, VAT and sales tax liabilities 25,321 45,156 Accrued expenses and other current liabilities 119,568 120,178 Total other accrued expenses and liabilities $ 186,545 $ 199,466 Receivables related to unrecognized revenue represent the current portion of billings made for customer contracts that have not yet been recognized as revenue. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (EPS) amounts are computed by dividing earnings by the weighted average number of common shares outstanding during the period. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive equivalents outstanding. To the extent stock awards are anti-dilutive, they are excluded from the calculation of diluted EPS. The details of basic and diluted EPS are as follows: Three Months Ended Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Net income $ 93,716 $ 96,564 $ 166,114 $ 142,628 Weighted average shares outstanding – basic 87,168 85,651 86,988 85,724 Dilutive effect of stock plans 885 1,283 1,031 1,428 Weighted average shares outstanding – diluted 88,053 86,934 88,019 87,152 Basic earnings per share $ 1.08 $ 1.13 $ 1.91 $ 1.66 Diluted earnings per share $ 1.06 $ 1.11 $ 1.89 $ 1.64 Anti-dilutive shares 31 26 29 27 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets are classified as follows: June 30, 2021 December 31, 2020 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 890,397 $ (396,417) $ 859,620 $ (370,338) Customer lists and contract backlog 286,732 (142,392) 288,085 (136,093) Trade names 176,262 (125,541) 175,626 (122,392) Total $ 1,353,391 $ (664,350) $ 1,323,331 $ (628,823) 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 $19.5 million and $13.9 million for the three months ended June 30, 2021 and 2020, respectively. Amortization expense for the intangible assets reflected above was $38.8 million and $27.6 million for the six months ended June 30, 2021 and 2020, respectively As of June 30, 2021, estimated future amortization expense for the intangible assets reflected above was as follows: (in thousands) Remainder of 2021 $ 36,684 2022 78,527 2023 80,665 2024 80,069 2025 77,767 2026 75,567 Thereafter 259,762 Total intangible assets subject to amortization 689,041 Indefinite-lived trade name 357 Other intangible assets, net $ 689,398 The changes in goodwill during the six months ended June 30, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 3,038,306 $ 2,413,280 Acquisitions and adjustments (1) 78,610 69,330 Currency translation (6,180) (8,311) Ending balance – June 30 $ 3,110,736 $ 2,474,299 (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. During the first quarter of 2021, 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, 2021. No other events or circumstances changed during the six months ended June 30, 2021 that would indicate that the fair values of our reporting unit and indefinite-lived intangible asset are below their carrying amounts. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2021 | |
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. Our long-term debt is classified within Level 2 of the fair value hierarchy because these borrowings are not actively traded and have a variable interest rate structure based upon market rates. The carrying amount of our long-term debt approximates the estimated fair value. See Note 10, "Debt", for additional information on our borrowings. The following tables provide the assets carried at fair value and measured on a recurring basis: Fair Value Measurements at Reporting Date Using: (in thousands) June 30, Quoted Prices in Significant Other Significant Assets Cash equivalents $ 401,630 $ 401,630 $ — $ — Short-term investments $ 504 $ — $ 504 $ — Deferred compensation plan investments $ 1,602 $ 1,602 $ — $ — Equity securities $ 3,078 $ 3,078 $ — $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2020 Quoted Prices in Significant Other Significant Assets Cash equivalents $ 341,085 $ 341,085 $ — $ — Short-term investments $ 479 $ — $ 479 $ — Deferred compensation plan investments $ 1,602 $ 1,602 $ — $ — 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 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 condensed consolidated balance sheets. The equity securities represent our investment in a publicly traded company. These securities are traded in an active market with quoted prices. As a result, the securities are classified as Level 1 in the fair value hierarchy. The securities are recorded within other long-term assets on our condensed consolidated balance sheets. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Our right-of-use (ROU) assets and lease liabilities primarily include operating leases for office space. 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 remaining base rent (inclusive of property taxes and certain operating costs) is $4.5 million per annum through 2024 and $4.7 million per annum for 2025 - 2029. The components of our global lease cost reflected in the condensed consolidated statements of income are as follows: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Lease liability cost $ 7,138 $ 6,280 $ 14,139 $ 12,498 Variable lease cost not included in the lease liability (1) 904 1,224 2,186 2,321 Total lease cost $ 8,042 $ 7,504 $ 16,325 $ 14,819 (1) Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate. Other information related to operating leases is as follows: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (7,139) $ (5,668) $ (13,966) $ (11,401) Right-of-use assets obtained in exchange for new operating lease liabilities 5,007 642 5,594 20,243 As of June 30, 2021 2020 Weighted-average remaining lease term of operating leases 6.9 years 7.7 years Weighted-average discount rate of operating leases 3.0 % 3.3 % The maturity schedule of the operating lease liabilities as of June 30, 2021 is as follows: (in thousands) Remainder of 2021 $ 14,238 2022 25,593 2023 20,018 2024 18,734 2025 17,708 Thereafter 50,813 Total future lease payments 147,104 Less: Present value adjustment (14,934) Present value of future lease payments (1) $ 132,170 (1) Includes the current portion of operating lease liabilities of $24.0 million, which is reflected in other accrued expenses and liabilities in the condensed consolidated balance sheets. There were no material leases that have been signed but not yet commenced as of June 30, 2021. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
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 (Revolving Credit Facility), 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. The Revolving Credit Facility had not been utilized as of June 30, 2021. We amended our credit agreement (Amended Credit Agreement) on October 16, 2019. The amendment provided for a new $500.0 million unsecured term loan facility to finance our acquisition of Livermore Software Technology (LST) in the fourth quarter of 2019. 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. We repaid $75.0 million of the unsecured term loan balance in January 2020 prior to the scheduled maturity dates in 2022 ($25.0 million) and 2023 ($50.0 million). In June 2021, we repaid $26.0 million of the unsecured term loan balance prior to the scheduled maturity date in 2024. In connection with the acquisition of AGI, we entered into a credit agreement (AGI Credit Agreement) on November 9, 2020, with Bank of America, N.A. as the Administrative Agent. The AGI Credit Agreement provided for a new $375.0 million unsecured term loan facility to finance a portion of the cash consideration for the acquisition. The term loan was funded on December 1, 2020 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 fifth 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. We repaid $19.0 million of the unsecured term loan balance in June 2021 prior to the scheduled maturity dates in 2022 ($18.8 million) and 2023 ($0.2 million). Borrowings under the Amended Credit Agreement and the AGI Credit Agreement (collectively, the Credit Agreements) accrue interest at the Eurodollar rate plus an applicable margin or at the base rate, at our election. For the quarter ended June 30, 2021, 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, respecti vely. The weighted average interest rate in effect during each of the three and six months ended June 30, 2021 was 1.45%. As of June 30, 2021, the rate in effect for the Credit Agreements was 1.40%. The Credit Agreements contain 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 Credit Agreements 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 Credit Agreements contain customary representations and warranties, affirmative and negative covenants and events of default. The Credit Agreements also each contain 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 June 30, 2021 and December 31, 2020, the carrying values of the term loans were $753.3 million, which is net of $1.7 million of unamortized debt issuance costs, and $798.1 million, which is net of $1.9 million of unamortized debt issuance costs, respectively. We were in compliance with all covenants as of June 30, 2021 and December 31, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income before income tax provision, income tax provision and effective tax rates were as follows: Three Months Ended Six Months Ended (in thousands, except percentages) June 30, June 30, June 30, June 30, Income before income tax provision $ 128,860 $ 112,585 $ 176,483 $ 145,909 Income tax provision 35,144 16,021 10,369 3,281 Effective tax rate 27.3 % 14.2 % 5.9 % 2.2 % Tax expense for the first half of 2021 and 2020 benefited due to increased stock compensation benefits, many of which were recognized discretely in the first quarter of each year. These benefits were partially offset by an increase in non-deductible compensation in 2021. |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2021 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Under our stock repurchase program, we repurchased shares as follows: Six Months Ended (in thousands, except per share data) June 30, June 30, Number of shares repurchased — 690 Average price paid per share $ — $ 233.48 Total cost $ — $ 161,029 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationOn May 14, 2021, our stockholders approved the ANSYS, Inc. 2021 Equity and Incentive Compensation Plan (the 2021 Plan). The 2021 Plan is a long-term incentive plan pursuant to which awards may be granted to directors, officers, other employees and certain consultants of Ansys and its subsidiaries. These awards include stock option rights, stock appreciation rights, restricted stock, restricted stock units, cash incentives, performance shares, performance units and other awards. The 2021 Plan authorizes 4.4 million shares of common stock for issuance, plus 1.6 million shares that remained available for issuance under the Fifth Amended and Restated ANSYS, Inc. 1996 Stock Option and Grant Plan (the Predecessor Plan) as of the effective date of the 2021 Plan plus any shares relating to the outstanding awards under the Predecessor Plan or the 2021 Plan that are subsequently forfeited. As of the effective date of the 2021 Plan, grants are no longer made under the Predecessor Plan. Total stock-based compensation expense and its net impact on basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Cost of sales: Maintenance and service $ 3,519 $ 3,464 $ 7,081 $ 6,330 Operating expenses: Selling, general and administrative 23,515 16,319 40,738 31,463 Research and development 15,851 14,347 30,185 27,278 Stock-based compensation expense before taxes 42,885 34,130 78,004 65,071 Related income tax benefits (8,783) (10,883) (51,408) (36,789) Stock-based compensation expense, net of taxes $ 34,102 $ 23,247 $ 26,596 $ 28,282 Net impact on earnings per share: Basic earnings per share $ (0.39) $ (0.27) $ (0.31) $ (0.33) Diluted earnings per share $ (0.39) $ (0.27) $ (0.30) $ (0.32) |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2021 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information | Geographic Information Revenue to external customers is attributed to individual countries based upon the location of the customer. Revenue by geographic area is as follows: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, United States $ 208,402 $ 184,143 $ 361,103 $ 309,256 Japan 60,198 55,849 102,213 93,208 Germany 30,609 27,274 61,955 57,371 South Korea 23,091 17,461 45,489 33,022 Other Europe, Middle East and Africa (EMEA) 74,348 60,083 146,277 119,393 Other international 50,006 40,851 92,843 78,396 Total revenue $ 446,654 $ 385,661 $ 809,880 $ 690,646 Property and equipment by geographic area is as follows: (in thousands) June 30, December 31, United States $ 63,494 $ 65,633 India 6,437 7,408 Germany 5,369 5,277 France 5,003 5,749 Other EMEA 5,252 5,847 Other international 6,317 6,589 Total property and equipment, net $ 91,872 $ 96,503 |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2021 | |
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 third party's 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 $7.3 million. As such charges are not probable at this time, a reserve has not been recorded on the condensed consolidated balance sheet as of June 30, 2021. 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) issued a favorable ruling to Microsoft. The Microsoft ruling was subsequently challenged in the Supreme Court by the Indian tax authority and a decision is still pending. We can provide no assurances on the impact that the present Microsoft case's decision will have on our cases, however, an unfavorable ruling in the Microsoft case may impact our assessment of probability and result in the recording of a $7.3 million reserve. 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 or non-compliance to contractual terms and conditions 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information for commercial and industrial companies, the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Form 10-K). The condensed consolidated December 31, 2020 balance sheet presented is derived from the audited December 31, 2020 balance sheet included in the 2020 Form 10-K. In our opinion, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for any future period. |
Changes in Accounting Policies | Recently Adopted Accounting Guidance Income taxes: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 eliminated 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 clarified and simplified other aspects of the accounting for income taxes. We adopted ASU 2019-12 on January 1, 2021 with no material impact to our condensed consolidated financial statements. |
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: June 30, 2021 December 31, 2020 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 556,074 58.1 $ 571,587 62.6 Money market funds 401,630 41.9 341,085 37.4 Total $ 957,704 $ 912,672 Our money market fund balances are held in various funds of two issuers. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Our cash and cash equivalents balances comprise the following: June 30, 2021 December 31, 2020 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 556,074 58.1 $ 571,587 62.6 Money market funds 401,630 41.9 341,085 37.4 Total $ 957,704 $ 912,672 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue: Three Months Ended Six Months Ended (in thousands, except percentages) June 30, June 30, June 30, June 30, Revenue: Lease licenses $ 129,794 $ 113,209 $ 194,871 $ 158,083 Perpetual licenses 85,028 56,132 152,555 99,088 Software licenses 214,822 169,341 347,426 257,171 Maintenance 218,297 203,179 431,971 403,667 Service 13,535 13,141 30,483 29,808 Maintenance and service 231,832 216,320 462,454 433,475 Total revenue $ 446,654 $ 385,661 $ 809,880 $ 690,646 Direct revenue, as a percentage of total revenue 75.4 % 78.1 % 73.8 % 76.2 % Indirect revenue, as a percentage of total revenue 24.6 % 21.9 % 26.2 % 23.8 % |
Changes in Deferred Revenue | The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the six months ended June 30, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 388,810 $ 365,274 Acquired deferred revenue 746 1,405 Deferral of revenue 777,714 661,790 Recognition of revenue (809,880) (690,646) Currency translation (5,792) (1,635) Ending balance – June 30 $ 351,598 $ 336,188 |
Remaining Performance Obligations, Expected Timing of Satisfaction | Total revenue allocated to remaining performance obligations as of June 30, 2021 will be recognized as revenue as follows: (in thousands) Next 12 months $ 597,173 Months 13-24 177,100 Months 25-36 83,608 Thereafter 69,218 Total revenue allocated to remaining performance obligations $ 927,099 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Fair Value of Consideration Transferred | Fair Value of Consideration Transferred: (in thousands) Cash $ 110,790 |
Schedule of Recognized Amounts of Identified Assets Acquired and Liabilities Assumed | Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 4,320 Accounts receivable and other tangible assets 2,854 Developed software and core technologies (12 year weighted-average life) 32,200 Customer lists (9 year weighted-average life) 2,300 Trade names (10 year weighted-average life) 1,000 Accounts payable and other liabilities (2,834) Deferred revenue (746) Net deferred tax liabilities (7,311) Total identifiable net assets $ 31,783 Goodwill $ 79,007 |
Other Receivables and Current_2
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: (in thousands) June 30, December 31, Receivables related to unrecognized revenue $ 113,354 $ 192,154 Income taxes receivable, including overpayments and refunds 45,879 31,628 Prepaid expenses and other current assets 55,259 44,740 Total other receivables and current assets $ 214,492 $ 268,522 Accrued vacation 41,656 34,132 Consumption, VAT and sales tax liabilities 25,321 45,156 Accrued expenses and other current liabilities 119,568 120,178 Total other accrued expenses and liabilities $ 186,545 $ 199,466 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Details of Basic and Diluted EPS | The details of basic and diluted EPS are as follows: Three Months Ended Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Net income $ 93,716 $ 96,564 $ 166,114 $ 142,628 Weighted average shares outstanding – basic 87,168 85,651 86,988 85,724 Dilutive effect of stock plans 885 1,283 1,031 1,428 Weighted average shares outstanding – diluted 88,053 86,934 88,019 87,152 Basic earnings per share $ 1.08 $ 1.13 $ 1.91 $ 1.66 Diluted earnings per share $ 1.06 $ 1.11 $ 1.89 $ 1.64 Anti-dilutive shares 31 26 29 27 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets (Indefinite-Lived) | Intangible assets are classified as follows: June 30, 2021 December 31, 2020 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 890,397 $ (396,417) $ 859,620 $ (370,338) Customer lists and contract backlog 286,732 (142,392) 288,085 (136,093) Trade names 176,262 (125,541) 175,626 (122,392) Total $ 1,353,391 $ (664,350) $ 1,323,331 $ (628,823) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Intangible Assets (Finite-Lived) | Intangible assets are classified as follows: June 30, 2021 December 31, 2020 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 890,397 $ (396,417) $ 859,620 $ (370,338) Customer lists and contract backlog 286,732 (142,392) 288,085 (136,093) Trade names 176,262 (125,541) 175,626 (122,392) Total $ 1,353,391 $ (664,350) $ 1,323,331 $ (628,823) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Estimated Future Amortization Expense for Intangible Assets | As of June 30, 2021, estimated future amortization expense for the intangible assets reflected above was as follows: (in thousands) Remainder of 2021 $ 36,684 2022 78,527 2023 80,665 2024 80,069 2025 77,767 2026 75,567 Thereafter 259,762 Total intangible assets subject to amortization 689,041 Indefinite-lived trade name 357 Other intangible assets, net $ 689,398 |
Changes in Goodwill | The changes in goodwill during the six months ended June 30, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 3,038,306 $ 2,413,280 Acquisitions and adjustments (1) 78,610 69,330 Currency translation (6,180) (8,311) Ending balance – June 30 $ 3,110,736 $ 2,474,299 (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) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables provide the assets carried at fair value and measured on a recurring basis: Fair Value Measurements at Reporting Date Using: (in thousands) June 30, Quoted Prices in Significant Other Significant Assets Cash equivalents $ 401,630 $ 401,630 $ — $ — Short-term investments $ 504 $ — $ 504 $ — Deferred compensation plan investments $ 1,602 $ 1,602 $ — $ — Equity securities $ 3,078 $ 3,078 $ — $ — Fair Value Measurements at Reporting Date Using: (in thousands) December 31, 2020 Quoted Prices in Significant Other Significant Assets Cash equivalents $ 341,085 $ 341,085 $ — $ — Short-term investments $ 479 $ — $ 479 $ — Deferred compensation plan investments $ 1,602 $ 1,602 $ — $ — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of our global lease cost reflected in the condensed consolidated statements of income are as follows: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Lease liability cost $ 7,138 $ 6,280 $ 14,139 $ 12,498 Variable lease cost not included in the lease liability (1) 904 1,224 2,186 2,321 Total lease cost $ 8,042 $ 7,504 $ 16,325 $ 14,819 (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 is as follows: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (7,139) $ (5,668) $ (13,966) $ (11,401) Right-of-use assets obtained in exchange for new operating lease liabilities 5,007 642 5,594 20,243 As of June 30, 2021 2020 Weighted-average remaining lease term of operating leases 6.9 years 7.7 years Weighted-average discount rate of operating leases 3.0 % 3.3 % |
Schedule of Maturity of Operating Lease Liabilities | The maturity schedule of the operating lease liabilities as of June 30, 2021 is as follows: (in thousands) Remainder of 2021 $ 14,238 2022 25,593 2023 20,018 2024 18,734 2025 17,708 Thereafter 50,813 Total future lease payments 147,104 Less: Present value adjustment (14,934) Present value of future lease payments (1) $ 132,170 (1) Includes the current portion of operating lease liabilities of $24.0 million, which is reflected in other accrued expenses and liabilities in the condensed consolidated balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | Our income before income tax provision, income tax provision and effective tax rates were as follows: Three Months Ended Six Months Ended (in thousands, except percentages) June 30, June 30, June 30, June 30, Income before income tax provision $ 128,860 $ 112,585 $ 176,483 $ 145,909 Income tax provision 35,144 16,021 10,369 3,281 Effective tax rate 27.3 % 14.2 % 5.9 % 2.2 % |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Under our stock repurchase program, we repurchased shares as follows: Six Months Ended (in thousands, except per share data) June 30, June 30, Number of shares repurchased — 690 Average price paid per share $ — $ 233.48 Total cost $ — $ 161,029 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense and Its Net Impact on Basic and Diluted Earnings Per Share | Total stock-based compensation expense and its net impact on basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended (in thousands, except per share data) June 30, June 30, June 30, June 30, Cost of sales: Maintenance and service $ 3,519 $ 3,464 $ 7,081 $ 6,330 Operating expenses: Selling, general and administrative 23,515 16,319 40,738 31,463 Research and development 15,851 14,347 30,185 27,278 Stock-based compensation expense before taxes 42,885 34,130 78,004 65,071 Related income tax benefits (8,783) (10,883) (51,408) (36,789) Stock-based compensation expense, net of taxes $ 34,102 $ 23,247 $ 26,596 $ 28,282 Net impact on earnings per share: Basic earnings per share $ (0.39) $ (0.27) $ (0.31) $ (0.33) Diluted earnings per share $ (0.39) $ (0.27) $ (0.30) $ (0.32) |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segments, Geographical Areas [Abstract] | |
Revenue by Geographic Area | Revenue by geographic area is as follows: Three Months Ended Six Months Ended (in thousands) June 30, June 30, June 30, June 30, United States $ 208,402 $ 184,143 $ 361,103 $ 309,256 Japan 60,198 55,849 102,213 93,208 Germany 30,609 27,274 61,955 57,371 South Korea 23,091 17,461 45,489 33,022 Other Europe, Middle East and Africa (EMEA) 74,348 60,083 146,277 119,393 Other international 50,006 40,851 92,843 78,396 Total revenue $ 446,654 $ 385,661 $ 809,880 $ 690,646 |
Property and Equipment by Geographic Area | Property and equipment by geographic area is as follows: (in thousands) June 30, December 31, United States $ 63,494 $ 65,633 India 6,437 7,408 Germany 5,369 5,277 France 5,003 5,749 Other EMEA 5,252 5,847 Other international 6,317 6,589 Total property and equipment, net $ 91,872 $ 96,503 |
Organization (Detail)
Organization (Detail) | 6 Months Ended |
Jun. 30, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Accounting Policies - Cash and
Accounting Policies - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Cash accounts, Amount | $ 556,074 | $ 571,587 |
Money market funds, Amount | 401,630 | 341,085 |
Total | $ 957,704 | $ 912,672 |
Cash | ||
Percent Of Cash And Cash Equivalents | 58.10% | 62.60% |
Money Market Funds | ||
Percent Of Cash And Cash Equivalents | 41.90% | 37.40% |
Accounting Policies - Cash an_2
Accounting Policies - Cash and Cash Equivalents - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
Money Market Funds | Money Market Fund Benchmark | Money Market Fund Concentration Risk | |
Cash and Cash Equivalents [Line Items] | |
Concentration risk, % of money market funds with two issuers | 100.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Amount of revenue recognized from beginning deferred revenue and backlog | $ 373.7 | $ 343.9 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 446,654 | $ 385,661 | $ 809,880 | $ 690,646 |
Lease licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 129,794 | 113,209 | 194,871 | 158,083 |
Perpetual licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 85,028 | 56,132 | 152,555 | 99,088 |
Software licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 214,822 | 169,341 | 347,426 | 257,171 |
Maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 218,297 | 203,179 | 431,971 | 403,667 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 13,535 | 13,141 | 30,483 | 29,808 |
Maintenance and service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 231,832 | $ 216,320 | $ 462,454 | $ 433,475 |
Direct revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 75.40% | 78.10% | 73.80% | 76.20% |
Indirect revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 24.60% | 21.90% | 26.20% | 23.80% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Changes in Deferred Revenue (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | $ 388,810 | $ 365,274 |
Acquired deferred revenue | 746 | 1,405 |
Deferral of revenue | 777,714 | 661,790 |
Recognition of revenue | (809,880) | (690,646) |
Currency translation | (5,792) | (1,635) |
Ending balance | $ 351,598 | $ 336,188 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations, Expected Timing of Satisfaction (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 927,099 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 597,173 |
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]: 2022-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 177,100 |
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]: 2023-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 83,608 |
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]: 2024-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 69,218 |
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 ($) $ in Thousands | Dec. 01, 2020 | Apr. 01, 2020 | Jun. 30, 2021 |
Series of Individually Immaterial Business Acquisitions | |||
Payments to acquire businesses, gross | $ 110,790 | ||
Analytical Graphics, Inc. | |||
Payments to acquire businesses, gross | $ 720,600 | ||
Percentage of shares acquired | 100.00% | ||
Lumerical | |||
Payments to acquire businesses, gross | $ 107,500 | ||
Percentage of shares acquired | 100.00% |
Fair Value of Consideration Tra
Fair Value of Consideration Transferred (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Series of Individually Immaterial Business Acquisitions | |
Cash | $ 110,790 |
Recognized Amounts of Identifia
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed (Details) - Series of Individually Immaterial Business Acquisitions $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Cash | $ 4,320 |
Accounts receivable and other tangible assets | 2,854 |
Accounts payable and other liabilities | (2,834) |
Deferred revenue | (746) |
Net deferred tax liabilities | (7,311) |
Total identifiable net assets | 31,783 |
Goodwill | 79,007 |
Developed Software and Core Technologies | |
Finite-lived intangible assets | $ 32,200 |
Finite-lived intangible asset, useful life | 12 years |
Customer Lists | |
Finite-lived intangible assets | $ 2,300 |
Finite-lived intangible asset, useful life | 9 years |
Trade Names | |
Finite-lived intangible assets | $ 1,000 |
Finite-lived intangible asset, useful life | 10 years |
Other Receivables and Current_3
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | ||
Receivables related to unrecognized revenue | $ 113,354 | $ 192,154 |
Income taxes receivable, including overpayments and refunds | 45,879 | 31,628 |
Prepaid expenses and other current assets | 55,259 | 44,740 |
Total other receivables and current assets | 214,492 | 268,522 |
Accrued vacation | 41,656 | 34,132 |
Consumption, VAT and sales tax liabilities | 25,321 | 45,156 |
Accrued expenses and other current liabilities | 119,568 | 120,178 |
Total other accrued expenses and liabilities | $ 186,545 | $ 199,466 |
Earnings Per Share - Details of
Earnings Per Share - Details of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 93,716 | $ 72,398 | $ 96,564 | $ 46,064 | $ 166,114 | $ 142,628 |
Weighted average shares outstanding – basic | 87,168 | 85,651 | 86,988 | 85,724 | ||
Dilutive effect of stock plans | 885 | 1,283 | 1,031 | 1,428 | ||
Weighted average shares outstanding – diluted | 88,053 | 86,934 | 88,019 | 87,152 | ||
Basic earnings per share | $ 1.08 | $ 1.13 | $ 1.91 | $ 1.66 | ||
Diluted earnings per share | $ 1.06 | $ 1.11 | $ 1.89 | $ 1.64 | ||
Anti-dilutive shares | 31 | 26 | 29 | 27 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amortization of intangible assets | $ 19.5 | $ 13.9 | $ 38.8 | $ 27.6 |
Minimum | ||||
Finite-lived Intangible asset, useful life | 2 years | |||
Maximum | ||||
Finite-lived Intangible asset, useful life | 17 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 1,353,391 | $ 1,323,331 |
Amortized intangible assets, accumulated amortization | (664,350) | (628,823) |
Indefinite-lived intangible assets (excluding goodwill) | 357 | |
Trade Names | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | 357 | 357 |
Developed Software and Core Technologies | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 890,397 | 859,620 |
Amortized intangible assets, accumulated amortization | (396,417) | (370,338) |
Customer Lists | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 286,732 | 288,085 |
Amortized intangible assets, accumulated amortization | (142,392) | (136,093) |
Trade Names | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 176,262 | 175,626 |
Amortized intangible assets, accumulated amortization | $ (125,541) | $ (122,392) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 36,684 | |
2022 | 78,527 | |
2023 | 80,665 | |
2024 | 80,069 | |
2025 | 77,767 | |
2026 | 75,567 | |
Thereafter | 259,762 | |
Total intangible assets subject to amortization | 689,041 | |
Indefinite-lived trade name | 357 | |
Other intangible assets, net | $ 689,398 | $ 694,865 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 3,038,306 | $ 2,413,280 |
Acquisitions and adjustments | 78,610 | 69,330 |
Currency translation | (6,180) | (8,311) |
Ending balance | $ 3,110,736 | $ 2,474,299 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 401,630 | $ 341,085 |
Short-term investments | 504 | 479 |
Deferred compensation plan investments | 1,602 | 1,602 |
Equity securities | 3,078 | |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 401,630 | 341,085 |
Short-term investments | 0 | 0 |
Deferred compensation plan investments | 1,602 | 1,602 |
Equity securities | 3,078 | |
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 | 504 | 479 |
Deferred compensation plan investments | 0 | 0 |
Equity securities | 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 |
Equity securities | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
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 Millions | Jun. 30, 2021USD ($)ft² |
Lessee, Lease, Description [Line Items] | |
Current portion of operating lease liabilities | $ 24 |
Canonsburg Office, New Company Headquarters | |
Lessee, Lease, Description [Line Items] | |
Area of real estate property | ft² | 186,000 |
Period of leased property | 183 months |
Base rent through 2024 | $ 4.5 |
Base rent 2025-2029 | $ 4.7 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Lease liability cost | $ 7,138 | $ 6,280 | $ 14,139 | $ 12,498 |
Variable lease cost not included in the lease liability | 904 | 1,224 | 2,186 | 2,321 |
Total lease cost | $ 8,042 | $ 7,504 | $ 16,325 | $ 14,819 |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease Other Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ (7,139) | $ (5,668) | $ (13,966) | $ (11,401) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 5,007 | $ 642 | $ 5,594 | $ 20,243 |
Weighted-average remaining lease term of operating leases | 6 years 10 months 24 days | 7 years 8 months 12 days | 6 years 10 months 24 days | 7 years 8 months 12 days |
Weighted-average discount rate of operating leases | 3.00% | 3.30% | 3.00% | 3.30% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 14,238 |
2022 | 25,593 |
2023 | 20,018 |
2024 | 18,734 |
2025 | 17,708 |
Thereafter | 50,813 |
Total future lease payments | 147,104 |
Less: Present value adjustment | (14,934) |
Present value of future lease payments | $ 132,170 |
Debt (Detail)
Debt (Detail) - USD ($) | Jun. 30, 2021 | Jan. 06, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 01, 2020 | Nov. 01, 2019 |
Debt Disclosure [Line Items] | |||||||
Term loan principal repayment rate, initial | 1.25% | 1.25% | 1.25% | ||||
Term loan principal repayment rate, increased | 2.50% | 2.50% | 2.50% | ||||
Weighted-average interest rate over time | 1.45% | 1.45% | |||||
Weighted-average interest rate at point in time | 1.40% | 1.40% | 1.40% | ||||
Consolidated leverage ratio | 3.50 | 3.50 | 3.50 | ||||
Consolidated leverage ratio increased | 4 | 4 | 4 | ||||
Qualified acquisition amount | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | ||||
Long-term debt | 753,327,000 | 753,327,000 | 753,327,000 | $ 798,118,000 | |||
Unamortized debt issuance cost | 1,700,000 | 1,700,000 | 1,700,000 | $ 1,900,000 | |||
Livermore Software Technology Corporation | |||||||
Debt Disclosure [Line Items] | |||||||
Unsecured debt | $ 500,000,000 | ||||||
Early debt repayment | 26,000,000 | $ 75,000,000 | |||||
Early repayment of debt due in 2022 | 25,000,000 | ||||||
Early repayment of debt due in 2023 | $ 50,000,000 | ||||||
Analytical Graphics, Inc. | |||||||
Debt Disclosure [Line Items] | |||||||
Unsecured debt | $ 375,000,000 | ||||||
Early debt repayment | 19,000,000 | ||||||
Early repayment of debt due in 2022 | 18,800,000 | 18,800,000 | 18,800,000 | ||||
Early repayment of debt due in 2023 | 200,000 | 200,000 | 200,000 | ||||
Revolving credit facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum borrowing capacity | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Outstanding borrowings under the credit agreement | 0 | 0 | 0 | ||||
Letters of credit | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||
Base rate | |||||||
Debt Disclosure [Line Items] | |||||||
Debt instrument, basis spead on federal funds rate | 0.50% | ||||||
Debt instrument, basis spread on Eurodollar rate | 1.00% | ||||||
Base rate | Minimum | |||||||
Debt Disclosure [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.125% | ||||||
Base rate | Maximum | |||||||
Debt Disclosure [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.75% | ||||||
Eurodollar | Minimum | |||||||
Debt Disclosure [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.125% | ||||||
Eurodollar | Maximum | |||||||
Debt Disclosure [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.75% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before income tax provision | $ 128,860 | $ 112,585 | $ 176,483 | $ 145,909 |
Income tax provision | $ 35,144 | $ 16,021 | $ 10,369 | $ 3,281 |
Effective tax rate | 27.30% | 14.20% | 5.90% | 2.20% |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Class of Stock Disclosures [Abstract] | |||
Number of shares repurchased | 0 | 690 | |
Average price paid per share | $ 0 | $ 233.48 | |
Total cost | $ 161,029 | $ 0 | $ 161,029 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) shares in Millions | Jun. 30, 2021shares |
Class of Stock Disclosures [Abstract] | |
Stock repurchase program, remaining number of shares authorized to be repurchased | 2.8 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense and Its Net Impact on Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 42,885 | $ 34,130 | $ 78,004 | $ 65,071 |
Related income tax benefits | (8,783) | (10,883) | (51,408) | (36,789) |
Stock-based compensation expense, net of taxes | $ 34,102 | $ 23,247 | $ 26,596 | $ 28,282 |
Basic earnings per share | $ (0.39) | $ (0.27) | $ (0.31) | $ (0.33) |
Diluted earnings per share | $ (0.39) | $ (0.27) | $ (0.30) | $ (0.32) |
Maintenance and service | ||||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 3,519 | $ 3,464 | $ 7,081 | $ 6,330 |
Selling, general and administrative | ||||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | 23,515 | 16,319 | 40,738 | 31,463 |
Research and development | ||||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense before taxes | $ 15,851 | $ 14,347 | $ 30,185 | $ 27,278 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) shares in Millions | 6 Months Ended |
Jun. 30, 2021shares | |
Share-based Payment Arrangement [Abstract] | |
2021 Plan number of shares authorized | 4.4 |
Predecessor Plan shares that remained available for issuance | 1.6 |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 446,654 | $ 385,661 | $ 809,880 | $ 690,646 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 208,402 | 184,143 | 361,103 | 309,256 |
Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 60,198 | 55,849 | 102,213 | 93,208 |
Germany | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 30,609 | 27,274 | 61,955 | 57,371 |
South Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 23,091 | 17,461 | 45,489 | 33,022 |
Other Europe, Middle East and Africa (EMEA) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 74,348 | 60,083 | 146,277 | 119,393 |
Other international | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 50,006 | $ 40,851 | $ 92,843 | $ 78,396 |
Geographic Information - Proper
Geographic Information - Property and Equipment by Geographic Area (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 91,872 | $ 96,503 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 63,494 | 65,633 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 6,437 | 7,408 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 5,369 | 5,277 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 5,003 | 5,749 |
Other EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 5,252 | 5,847 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 6,317 | $ 6,589 |
Contingencies and Commitments (
Contingencies and Commitments (Detail) $ in Millions | Jun. 30, 2021USD ($) |
India Service Tax Audit | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 7.3 |