Document
Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 16, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 25,434,000,000 | ||
Entity Common Stock, Shares Outstanding | 87,229,991 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001013462 | ||
Nasdaq Stock Market LLC | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | ANSS | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Pittsburgh, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 667,667 | $ 912,672 |
Short-term investments | 361 | 479 |
Accounts receivable, less allowance for doubtful accounts of $14,600 and $14,000, respectively | 645,891 | 537,564 |
Other receivables and current assets | 324,655 | 268,522 |
Total current assets | 1,638,574 | 1,719,237 |
Long-term assets: | ||
Property and equipment, net | 87,914 | 96,503 |
Operating lease right-of-use assets | 120,881 | 137,730 |
Goodwill | 3,409,271 | 3,038,306 |
Other intangible assets, net | 763,119 | 694,865 |
Other long-term assets | 279,676 | 225,119 |
Deferred income taxes | 24,879 | 28,830 |
Total long-term assets | 4,685,740 | 4,221,353 |
Total assets | 6,324,314 | 5,940,590 |
Current liabilities: | ||
Accounts payable | 10,863 | 18,691 |
Accrued bonuses and commissions | 163,182 | 112,491 |
Accrued income taxes | 8,410 | 26,116 |
Other accrued expenses and liabilities | 204,509 | 199,466 |
Deferred revenue | 391,528 | 372,061 |
Total current liabilities | 778,492 | 728,825 |
Long-term liabilities: | ||
Deferred income taxes | 105,548 | 110,321 |
Long-term operating lease liabilities | 104,378 | 120,940 |
Long-term debt | 753,576 | 798,118 |
Other long-term liabilities | 98,272 | 84,514 |
Total long-term liabilities | 1,061,774 | 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 | 1,465,694 | 1,434,203 |
Retained earnings | 4,259,220 | 3,804,593 |
Treasury stock, at cost: 8,188,331 and 8,693,809 shares, respectively | (1,185,707) | (1,124,102) |
Accumulated other comprehensive loss | (56,112) | (17,775) |
Total stockholders' equity | 4,484,048 | 4,097,872 |
Total liabilities and stockholders' equity | $ 6,324,314 | $ 5,940,590 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 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 | 8,188,331 | 8,693,809 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Total revenue | $ 1,906,715 | $ 1,681,297 | $ 1,515,892 |
Cost of sales: | |||
Amortization | 60,762 | 40,642 | 21,710 |
Total cost of sales | 257,984 | 225,264 | 166,273 |
Gross profit | 1,648,731 | 1,456,033 | 1,349,619 |
Operating expenses: | |||
Selling, general and administrative | 715,377 | 587,707 | 521,200 |
Research and development | 404,870 | 355,371 | 298,210 |
Amortization | 15,213 | 16,599 | 15,169 |
Total operating expenses | 1,135,460 | 959,677 | 834,579 |
Operating income | 513,271 | 496,356 | 515,040 |
Interest income | 2,078 | 5,073 | 12,796 |
Interest expense | (12,405) | (10,988) | (3,461) |
Other income (expense), net | 12,410 | 3,484 | (1,792) |
Income before income tax provision | 515,354 | 493,925 | 522,583 |
Income tax provision | 60,727 | 60,038 | 71,288 |
Net income | $ 454,627 | $ 433,887 | $ 451,295 |
Earnings per share – basic: | |||
Earnings per share | $ 5.22 | $ 5.05 | $ 5.36 |
Weighted average shares | 87,100 | 85,840 | 84,259 |
Earnings per share – diluted: | |||
Earnings per share | $ 5.16 | $ 4.97 | $ 5.25 |
Weighted average shares | 88,102 | 87,288 | 85,925 |
Software licenses | |||
Revenue: | |||
Total revenue | $ 945,797 | $ 780,850 | $ 699,630 |
Cost of sales: | |||
Cost of sales | 38,156 | 30,618 | 23,944 |
Maintenance and service | |||
Revenue: | |||
Total revenue | 960,918 | 900,447 | 816,262 |
Cost of sales: | |||
Cost of sales | $ 159,066 | $ 154,004 | $ 120,619 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 454,627 | $ 433,887 | $ 451,295 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (38,337) | 47,606 | (3,002) |
Comprehensive income | $ 416,290 | $ 481,493 | $ 448,293 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 454,627 | $ 433,887 | $ 451,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 106,867 | 85,275 | 60,516 |
Operating lease right-of-use assets expense | 22,193 | 20,971 | 18,459 |
Deferred income tax benefit | (34,490) | (30,932) | (14,511) |
Provision for bad debts | 1,006 | 6,438 | 2,928 |
Stock-based compensation expense | 166,338 | 145,615 | 116,190 |
Gain on equity investment | (15,139) | 0 | 0 |
Other | 2,708 | 2,180 | 2,778 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (149,017) | (160,319) | (154,403) |
Other receivables and current assets | (64,316) | (2,312) | (26,182) |
Other long-term assets | (3,217) | (14,818) | (5,622) |
Accounts payable, accrued expenses and current liabilities | 53,846 | 21,362 | 38,543 |
Accrued income taxes | (18,429) | 19,713 | 575 |
Deferred revenue | 26,547 | 5,448 | 17,245 |
Other long-term liabilities | (42) | 14,802 | (7,875) |
Net cash provided by operating activities | 549,482 | 547,310 | 499,936 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (510,805) | (572,328) | (787,196) |
Capital expenditures | (23,018) | (35,370) | (44,940) |
Other investing activities | (2,990) | (6,555) | (1,412) |
Net cash used in investing activities | (536,813) | (614,253) | (833,548) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 0 | 375,000 | 500,000 |
Principal payments on long-term debt | (45,000) | (75,000) | 0 |
Purchase of treasury stock | (134,679) | (161,029) | (59,116) |
Restricted stock withholding taxes paid in lieu of issued shares | (97,037) | (71,019) | (42,431) |
Proceeds from shares issued for stock-based compensation | 31,377 | 29,560 | 34,093 |
Other financing activities | (513) | (915) | (3,137) |
Net cash (used in) provided by financing activities | (245,852) | 96,597 | 429,409 |
Effect of exchange rate fluctuations on cash and cash equivalents | (11,822) | 10,924 | (842) |
Net (decrease) increase in cash and cash equivalents | (245,005) | 40,578 | 94,955 |
Cash and cash equivalents, beginning of period | 912,672 | 872,094 | 777,139 |
Cash and cash equivalents, end of period | 667,667 | 912,672 | 872,094 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 130,426 | 54,174 | 86,770 |
Interest paid | 11,146 | 11,941 | 787 |
Fair value of common stock issued and unpaid consideration in connection with acquisitions | $ 0 | $ 232,690 | $ 307,173 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Livermore Software Technology Corporation | Analytical Graphics, Inc. | Common Stock | Common StockLivermore Software Technology Corporation | 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 | Treasury StockAnalytical Graphics, Inc. | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance at Dec. 31, 2018 | $ 2,649,547 | $ 932 | $ 867,462 | $ 2,919,411 | $ (1,075,879) | $ (62,379) | ||||||||
Beginning balance, shares at Dec. 31, 2018 | 93,236 | 9,602 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Acquisition activity | $ 307,173 | $ 14 | $ 307,159 | |||||||||||
Acquisition activity, shares | 1,392 | |||||||||||||
Treasury shares acquired | $ (59,116) | $ (59,116) | ||||||||||||
Treasury shares acquired, shares | 330 | 330 | ||||||||||||
Stock-based compensation activity | $ 107,482 | 14,318 | $ 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 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Acquisition activity | $ 1,531 | $ 218,348 | $ 7 | $ 1,030 | $ 218,108 | $ 501 | $ 233 | |||||||
Acquisition activity, shares | 638 | |||||||||||||
Acquisition activity, treasury shares | (6) | (3) | ||||||||||||
Treasury shares acquired | $ (161,029) | $ (161,029) | ||||||||||||
Treasury shares acquired, shares | 690 | 690 | ||||||||||||
Stock-based compensation activity | $ 104,150 | 26,126 | $ 78,024 | |||||||||||
Stock-based compensation activity, shares | (880) | |||||||||||||
Other comprehensive (loss)/income | 47,606 | 47,606 | ||||||||||||
Net income for the year | 433,887 | 433,887 | ||||||||||||
Ending balance at Dec. 31, 2020 | 4,097,872 | $ 953 | 1,434,203 | 3,804,593 | $ (1,124,102) | (17,775) | ||||||||
Ending balance, shares at Dec. 31, 2020 | 95,266 | 8,694 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Acquisition activity | $ 3,888 | $ 3,069 | $ 819 | |||||||||||
Acquisition activity, shares | 1 | |||||||||||||
Acquisition activity, treasury shares | (10) | |||||||||||||
Treasury shares acquired | $ (134,679) | $ (134,679) | ||||||||||||
Treasury shares acquired, shares | 347 | 347 | ||||||||||||
Stock-based compensation activity | $ 100,677 | 28,422 | $ 72,255 | |||||||||||
Stock-based compensation activity, shares | (843) | |||||||||||||
Other comprehensive (loss)/income | (38,337) | (38,337) | ||||||||||||
Net income for the year | 454,627 | 454,627 | ||||||||||||
Ending balance at Dec. 31, 2021 | $ 4,484,048 | $ 953 | $ 1,465,694 | $ 4,259,220 | $ (1,185,707) | $ (56,112) | ||||||||
Ending balance, shares at Dec. 31, 2021 | 95,267 | 8,188 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
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 high-tech, aerospace and defense, automotive, energy, industrial equipment, materials and chemicals, consumer products, healthcare, and construction. 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, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Accounting Principles The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States. Certain items in 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 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 consolidated financial statements. Accounting Guidance Issued and Not Yet Adopted Business combinations: In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , as if the acquirer had originated the contracts. Under the current guidance, such assets and liabilities are recognized by the acquirer at fair value on the acquisition date. ASU 2021-08 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted, including in an interim period, for any period for which financial statements have not yet been issued. We adopted the standard effective January 1, 2022. The standard will not impact acquired contract assets or liabilities from business combinations occurring prior to the effective date of adoption, and the impact in future periods will depend on the contract assets and contract liabilities acquired in future business combinations. 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: • Contract revenue • Standalone selling prices of our products and services • Allowance for doubtful accounts receivable • Valuation of goodwill and other intangible assets • Useful lives for depreciation and amortization • Acquired deferred revenue • Operating lease assets and liabilities • Fair values of stock awards • Deferred compensation • Income taxes • Uncertain tax positions • Tax valuation reserves • Contingencies and litigation 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 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. 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 and 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. 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. 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 is the principal to the transaction with the end-user. 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 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. 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, 2021 December 31, 2020 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 580,047 86.9 $ 571,587 62.6 Money market funds 87,620 13.1 341,085 37.4 Total $ 667,667 $ 912,672 Our money market fund balances are held in various funds of two issuers. 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 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 $76.0 million, $57.2 million and $36.9 million for the years ended December 31, 2021, 2020 and 2019, 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. 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 year ended December 31, 2021 that would indicate that the fair values of our reporting unit and indefinite-lived intangible asset are below their carrying amounts. 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) 2021 2020 2019 Revenue from channel partners 24 % 22 % 23 % No single customer or channel partner accounted for more than 5% of our revenue in 2021, 2020 or 2019. 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) 2021 2020 Cash and cash equivalents held domestically $ 365,390 $ 582,882 Cash and cash equivalents held by foreign subsidiaries 302,277 329,790 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 652,830 887,886 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 201,524 396,430 Allowance for Doubtful Accounts Allowance for Doubtful Accounts Policy 2021 and 2020 On January 1, 2020, we adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires us to use the current expected credit loss methodology to make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables over the lifetime of the receivables. 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. In determining these percentages, we consider our historical loss experience, current economic trends and future conditions. The changes in the allowance for doubtful accounts during the years ended December 31, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 14,000 $ 8,700 Additions: Charges to costs and expenses 1,006 6,438 Deductions: Write-offs (406) (1,138) Ending balance – December 31 $ 14,600 $ 14,000 Allowance for Doubtful Accounts Policy 2019 Under previous guidance, we made judgments as to our ability to collect outstanding receivables and provided allowances for a portion of receivables when collection became doubtful. Provisions were made based upon a specific review of all significant outstanding invoices from both value and delinquency perspectives. For those invoices not specifically reviewed, provisions were estimated at differing rates based upon the age of the receivable and the geographic area of origin. In determining these percentages, we considered our historical collection experience and current economic trends in the customer's industry and geographic region. We recorded provisions for bad debts of $1.0 million, $6.4 million and $2.9 million for the years ended December 31, 2021, 2020 and 2019, 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 income (expense), net. We recorded net foreign exchange losses of $1.8 million, $0.2 million and $2.5 million for the years ended December 31, 2021, 2020 and 2019, 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) 2021 2020 2019 Net income $ 454,627 $ 433,887 $ 451,295 Weighted average shares outstanding – basic 87,100 85,840 84,259 Dilutive effect of stock plans 1,002 1,448 1,666 Weighted average shares outstanding – diluted 88,102 87,288 85,925 Basic earnings per share $ 5.22 $ 5.05 $ 5.36 Diluted earnings per share $ 5.16 $ 4.97 $ 5.25 Anti-dilutive shares 23 23 14 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 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (in thousands) 2021 2020 2019 Revenue: Lease licenses $ 617,643 $ 500,105 $ 406,043 Perpetual licenses 328,154 280,745 293,587 Software licenses 945,797 780,850 699,630 Maintenance 896,037 840,597 760,574 Service 64,881 59,850 55,688 Maintenance and service 960,918 900,447 816,262 Total revenue $ 1,906,715 $ 1,681,297 $ 1,515,892 Direct revenue, as a percentage of total revenue 76.3 % 77.8 % 77.1 % Indirect revenue, as a percentage of total revenue 23.7 % 22.2 % 22.9 % 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, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 388,810 $ 365,274 Acquired deferred revenue 3,831 6,872 Deferral of revenue 1,937,974 1,687,907 Recognition of deferred revenue (1,906,715) (1,681,297) Currency translation (11,119) 10,054 Ending balance – December 31 $ 412,781 $ 388,810 Total revenue allocated to remaining performance obligations as of December 31, 2021 will be recognized as revenue as follows: (in thousands) Next 12 months $ 764,862 Months 13-24 253,226 Months 25-36 158,281 Thereafter 81,491 Total revenue allocated to remaining performance obligations $ 1,257,860 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, 2021 and 2020 included amounts in deferred |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2021 Acquisitions On October 1, 2021, we acquired 100% of the shares of Zemax, a leader in high-performance optical imaging system simulation, for a purchase price of $411.5 million, paid in cash, or $399.1 million net of cash acquired from Zemax. The acquisition expands the scope of our optical and photonics simulation portfolio by giving users comprehensive solutions that could drive innovation in healthcare, autonomy, consumer electronics and the IIoT. Additionally, during the year ended December 31, 2021 we completed several other acquisitions to expand our solution offerings and enhance our customers' experience. These acquisitions were not individually significant. The combined purchase price of these acquisitions during the year ended December 31, 2021 was $110.7 million, which was paid in cash. During the year ended December 31, 2021, we incurred $6.0 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) Zemax Other Acquisitions Total Cash $ 411,471 $ 110,739 $ 522,210 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Zemax Other Acquisitions Total Cash $ 12,353 $ 4,320 $ 16,673 Accounts receivable and other tangible assets 7,069 2,978 $ 10,047 Developed software and core technologies (11 year weighted-average life) 96,000 32,200 $ 128,200 Customer lists (8 year weighted-average life) 10,000 2,300 $ 12,300 Trade names (10 year weighted-average life) 7,000 1,000 $ 8,000 Accounts payable and other liabilities (4,757) (2,852) $ (7,609) Deferred revenue (3,085) (746) $ (3,831) Net deferred tax liabilities (24,609) (7,509) $ (32,118) Total identifiable net assets $ 99,971 $ 31,691 $ 131,662 Goodwill $ 311,500 $ 79,048 $ 390,548 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: selection of a valuation methodology, royalty rate, discount rate and customer attrition rate. The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired with the Zemax acquisition are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 11 years Multi-period excess earnings Discount rate: 7.5% Trade names 10 years Relief-from-royalty Royalty rate: 2.0% Discount rate: 8.0% Customer lists 8 years Multi-period excess earnings Attrition rate: 10.0% Discount rate: 7.5% 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 or in the aggregate during 2021. 2020 Acquisitions On December 1, 2020, we acquired 100% of the shares of 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 $720.1 million, inclusive of net working capital adjustments. On April 1, 2020, we acquired 100% of the shares of Lumerical, a leading developer of photonic design and simulation tools, for a purchase price of $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. During the year ended December 31, 2020, we incurred $5.1 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 value 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) AGI Lumerical Total Cash $ 495,066 $ 107,545 $ 602,611 Ansys common stock (1) 222,236 — 222,236 Consideration not yet paid 2,787 — 2,787 Total consideration transferred at fair value $ 720,089 $ 107,545 $ 827,634 (1) We issued 0.6 million shares of our common stock in an unregistered offering to the prior owners of AGI with a fair value of $217.7 million, and we issued $4.5 million from shares held in treasury. Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) AGI Lumerical Total Cash $ 17,663 $ 11,844 $ 29,507 Accounts receivable and other tangible assets 28,677 4,244 32,921 Developed software and core technologies 184,100 31,614 215,714 Customer lists 25,400 1,616 27,016 Trade names 18,200 1,756 19,956 Accounts payable and other liabilities (23,576) (1,148) (24,724) Deferred revenue (5,467) (1,405) (6,872) Net deferred tax liabilities (52,473) (7,452) (59,925) Total identifiable net assets $ 192,524 $ 41,069 $ 233,593 Goodwill $ 527,565 $ 66,476 $ 594,041 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 weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired with the AGI acquisition are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 10 years Relief-from-royalty Royalty rate: 40.0% Discount rate: 11.0% Trade names 9 years Relief-from-royalty Royalty rate: 1.0% - 2.0% Discount rate: 11.0% Customer lists 15 years Multi-period excess earnings Attrition rate: 10.0% Discount rate: 12.0% The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired with the Lumerical acquisition are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 10 years Multi-period excess earnings Discount rate: 16.5% Trade names 6 years Relief-from-royalty Royalty rate: 2.0% Discount rate: 16.5% Customer lists 10 years Multi-period excess earnings Attrition rate: 10.0% 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 or in the aggregate for the year ended December 31, 2020. |
Other Receivables and Current A
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | 12 Months Ended |
Dec. 31, 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: December 31, (in thousands) 2021 2020 Receivables related to unrecognized revenue $ 200,888 $ 192,154 Income taxes receivable, including overpayments and refunds 71,332 31,628 Prepaid expenses and other current assets 52,435 44,740 Total other receivables and current assets $ 324,655 $ 268,522 Consumption, sales and VAT tax liabilities $ 52,630 $ 45,156 Accrued expenses and other current liabilities 151,879 154,310 Total other accrued expenses and liabilities $ 204,509 $ 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 Equipment 1-15 years $ 127,093 $ 123,139 Computer software 1-5 years 35,134 34,469 Buildings and improvements 2-40 years 38,391 38,332 Leasehold improvements 1-17 years 25,948 25,237 Furniture 1-11 years 14,773 14,902 Land 2,696 2,696 Property and equipment, gross 244,035 238,775 Less: Accumulated depreciation (156,121) (142,272) Property and equipment, net $ 87,914 $ 96,503 Depreciation expense related to property and equipment was $30.9 million, $28.0 million and $23.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsGoodwill 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. Intangible assets are classified as follows: December 31, 2021 December 31, 2020 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 985,685 $ (422,797) $ 859,620 $ (370,338) Customer lists 203,072 (57,175) 288,085 (136,093) Trade names 182,554 (128,577) 175,626 (122,392) Total $ 1,371,311 $ (608,549) $ 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 $76.0 million, $57.2 million and $36.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) 2022 $ 84,264 2023 89,105 2024 90,178 2025 88,744 2026 87,187 Thereafter 323,284 Total intangible assets subject to amortization, net 762,762 Indefinite-lived trade name 357 Other intangible assets, net $ 763,119 The changes in goodwill during the years ended December 31, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance - January 1 $ 3,038,306 $ 2,413,280 Acquisitions and adjustments (1) 391,534 596,054 Currency translation (20,569) 28,972 Ending balance - December 31 $ 3,409,271 $ 3,038,306 (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. Such adjustments are not material to our consolidated financial statements. 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 year ended December 31, 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 | 12 Months Ended |
Dec. 31, 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 these 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) December 31, 2021 Quoted Prices in Significant Other Significant Assets Cash equivalents $ 87,620 $ 87,620 $ — $ — Short-term investments $ 361 $ — $ 361 $ — Deferred compensation plan investments $ 1,602 $ 1,602 $ — $ — Equity securities $ 2,500 $ 2,500 $ — $ — 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 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 consolidated balance sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 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 consolidated statements of income for the years ended December 31, 2021, 2020, and 2019 are as follows: (in thousands) 2021 2020 2019 Lease liability cost $ 28,357 $ 24,818 $ 22,507 Variable lease cost not included in the lease liability (1) 4,085 5,067 3,754 Total lease cost $ 32,442 $ 29,885 $ 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. Other information related to operating leases for the years ended December 31, 2021, 2020, and 2019 is as follows: (in thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (28,474) $ (22,470) $ (20,031) Right-of-use assets obtained in exchange for new operating lease liabilities $ 13,586 $ 48,248 $ 35,191 As of December 31, 2021 2020 Weighted-average remaining lease term of operating leases 7.2 years 7.3 years Weighted-average discount rate of operating leases 3.0 % 2.9 % The maturity schedule of the operating lease liabilities as of December 31, 2021 is as follows: (in thousands) 2022 $ 25,856 2023 20,196 2024 18,664 2025 17,269 2026 15,175 Thereafter 44,669 Total future lease payments 141,829 Less: Present value adjustment (14,610) Present value of future lease payments (1) $ 127,219 (1) Includes the current portion of operating lease liabilities of $22.8 million, which is reflected in other accrued expenses and liabilities There were no material leases that have been signed but not yet commenced as of December 31, 2021. |
Debt
Debt | 12 Months Ended |
Dec. 31, 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 has never been utilized. In connection with an acquisition, 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 partially 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 on March 31, 2022 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 dates 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 on March 31, 2022 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 December 31, 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 rates in effect for the years ended December 31, 2021 and 2020 were 1.37% and 2.09%, respectively. As of December 31, 2021, the rate in effect for the Credit Agreements was 1.35%. 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 December 31, 2021 and December 31, 2020, the carrying values of the term loans were $753.6 million, which is net of $1.4 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 December 31, 2021 and December 31, 2020. As of December 31, 2021, scheduled maturities of total debt for each of the three succeeding fiscal years are as follows: (in thousands) 2022 $ — 2023 37,250 2024 717,750 Total $ 755,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income tax provision included the following components: Year Ended December 31, (in thousands) 2021 2020 2019 Domestic $ 460,395 $ 465,382 $ 448,271 Foreign 54,959 28,543 74,312 Total $ 515,354 $ 493,925 $ 522,583 The provision for income taxes was composed of the following: Year Ended December 31, (in thousands) 2021 2020 2019 Current: Federal $ 44,805 $ 26,855 $ 44,824 State 6,626 12,738 9,554 Foreign 43,786 51,377 31,421 Deferred: Federal (32,449) (12,203) (8,833) State (1,691) (2,119) (965) Foreign (350) (16,610) (4,713) Total $ 60,727 $ 60,038 $ 71,288 The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate was as follows: Year Ended December 31, 2021 2020 2019 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Nondeductible expenses 2.8 0.7 0.5 State income taxes, net of federal benefit 0.6 1.6 1.5 Foreign rate differential 0.6 0.4 0.8 Valuation allowance release — (0.8) (1.3) Benefit from tax planning and entity structuring activities (1.3) (1.5) — Research and development credits (3.1) (3.2) (2.2) Foreign-derived intangible income deduction (4.0) (2.8) (3.8) Stock-based compensation (5.4) (3.6) (3.1) Other 0.6 0.4 0.2 11.8 % 12.2 % 13.6 % The components of deferred tax assets and liabilities are as follows: December 31, (in thousands) 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 47,235 $ 47,551 Uncertain tax positions 35,574 18,565 Operating lease liabilities 30,634 34,803 Stock-based compensation 25,578 24,738 Employee benefits 12,902 13,290 Research and development credits 5,393 9,847 Allowance for doubtful accounts 3,522 3,193 Other 1,960 6,856 Valuation allowance (14,936) (15,398) Total deferred tax assets 147,862 143,445 Deferred tax liabilities: Other intangible assets (173,895) (147,960) Operating lease right-of-use assets (29,296) (33,304) Deferred revenue (19,521) (26,839) Property and equipment (5,785) (6,052) Accounting method change (34) (10,781) Total deferred tax liabilities (228,531) (224,936) Net deferred tax liabilities $ (80,669) $ (81,491) The net decrease in the valuation allowance was primarily due to currency fluctuations on balances relating to foreign jurisdictions, partially 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, 2021, we had federal net operating loss carryforwards of $14.8 million, which are subject to limitations of their utilization. Losses totaling $13.4 million are not currently subject to expiration dates, while the remaining $1.4 million of losses expire between 2025 - 2037. Deferred tax assets of $2.2 million have been recorded for state operating loss carryforwards. These losses expire between 2031 - 2042, and are subject to limitations on their utilization. We had total foreign net operating loss carryforwards of $173.2 million, of which $141.3 million are not currently subject to expiration dates. The remainder, $31.9 million, expires between 2025 - 2037. We had tax credit carryforwards of $6.6 million, of which $1.1 million are subject to limitations on their utilization. Of these tax credit carryforwards, $1.0 million are not currently subject to expiration dates. The remainder, $5.6 million, expires in various years between 2023 - 2041. In general, it is our intention to permanently reinvest all earnings in excess of previously taxed amounts. Substantially all of the pre-2018 earnings of our non-U.S. subsidiaries were taxed through the transition tax imposed as part of the Tax Cuts and Jobs Act of 2017 and post-2018 current earnings are taxed as part of global intangible low-taxed income tax expense. These taxes increase 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 $70.0 million, and we would anticipate the tax effect on those earnings to be immaterial. The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ended December 31, (in thousands) 2021 2020 2019 Unrecognized tax benefit as of January 1 $ 24,075 $ 49,085 $ 22,827 Gross changes—acquisitions — (24,963) 26,914 Gross increases—tax positions in prior period 10,183 1,572 207 Gross decreases—tax positions in prior period (2,281) — (1,743) Gross increases—tax positions in current period 13,223 1,281 3,563 Reductions due to a lapse of the applicable statute of limitations (3,226) (3,502) (2,230) Changes due to currency fluctuation (912) 994 (453) Settlements (1,421) (392) — Unrecognized tax benefit as of December 31 $ 39,641 $ 24,075 $ 49,085 We believe that it is reasonably possible that $3.5 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, 2021 were to be recognized, a benefit of $16.4 million would impact the effective tax rate. We recognize interest and penalties related to income taxes as income tax expense. We recorded penalty expense of $1.8 million, $0.2 million and $0.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. We recorded interest income of $0.2 million for the year ended December 31, 2021 and interest expense of $0.3 million and less than $0.1 million for the years ended December 31, 2020, and 2019, respectively. As of December 31, 2021, we accrued a liability for penalties of $7.2 million and interest of $5.2 million. As of December 31, 2020, we accrued a liability for penalties of $5.5 million and interest of $5.4 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 2018 - 2021 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, 2021 | |
Retirement Benefits [Abstract] | |
Pension And Profit-Sharing Plans | Pension and Profit-Sharing Plans We have a 401(k) 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 eligible compensation. We may make discretionary matching contributions. We may also make discretionary nonelective contributions in an amount to be determined by the Board of Directors for each Plan Year, provided the employee is employed at the end of the year and has worked at least 1,000 hours. Domestic employees of acquired businesses may participate in the 401(k) plan when their benefits are transitioned. 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, 2021 and 2020, the total unfunded portions of the defined benefit obligations were $9.2 million and $13.5 million, respectively. Expenses related to our retirement programs were $20.0 million in 2021, $18.7 million in 2020 and $16.3 million in 2019. |
Non-Compete and Employment Agre
Non-Compete and Employment Agreements | 12 Months Ended |
Dec. 31, 2021 | |
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. Under the terms of the employment agreement, in the event that the Chief Executive Officer’s employment with us is terminated by us without “Cause” or as a result of his resignation with “Good Reason,” (each as defined in the agreement) the Chief Executive Officer will be entitled to (i) receive an amount equal to two times the sum of his then effective base salary plus his target bonus, payable over 24 months in equal installments, (ii) in certain circumstances, a monthly payment would be made by us of an amount equal to the employer health insurance contribution amount that would have been paid to the Chief Executive Officer for at most 24 months following such termination and (iii) the period of time during which the Chief Executive Officer may exercise his vested stock options shall be extended to the longer of (x) three months after his date of termination or (y) seven days after the commencement of our first open trading window that occurs after the date of termination, but in no event later than the 10-year expiration date of such options. 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. If a termination under the circumstances described above occurs during the period beginning 60 days prior to the effective date of a definitive agreement that will result in a change in control and ending 18 months after the consummation (closing) of a change in control, then, in lieu of the benefits described in the foregoing paragraph, the Chief Executive Officer will be entitled to (a) the amounts described in clause (i) above, which will be paid in a lump sum in certain circumstances rather than over 24 months, (b) the acceleration and vesting of all outstanding stock-based awards held by the Chief Executive Officer, subject to any performance or metric-based requirements set forth therein which shall be separately determined as set forth in the applicable award agreement and (c) in certain circumstances, a monthly payment by us of an amount equal to the employer health insurance contribution amount that would have been paid to the Chief Executive Officer for at most 24 months following such termination. 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, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On 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 were no longer made under the Predecessor Plan. The 2021 Plan requires a minimum vesting period or performance period of one year for most award types and a maximum period for options to be exercisable as ten years from the grant date. Upon the death or disability of a participant, performance awards are vested pro-rata, subject to any performance target requirements, and all other awards become fully vested. 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 2021 Plan may vest in the event of a change in control or an employee's termination of employment. A change in control will result in awards either being assumed by the acquirer or the pre-existing awards becoming immediately vested and earned at target award levels. In the event an employee is terminated without cause within 18 months after the change in control, any assumed awards will become immediately vested. 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, 2021, 2020 and 2019 is as follows: Year Ended December 31, (in thousands, except per share amounts) 2021 2020 2019 Cost of sales: Maintenance and service 12,390 13,626 8,494 Operating expenses: Selling, general and administrative 91,772 73,491 60,639 Research and development 62,176 58,498 47,057 Stock-based compensation expense before taxes 166,338 145,615 116,190 Related income tax benefits (75,241) (56,485) (47,454) Stock-based compensation expense, net of taxes $ 91,097 $ 89,130 $ 68,736 Net impact on earnings per share: Basic earnings per share $ (1.05) $ (1.04) $ (0.82) Diluted earnings per share $ (1.03) $ (1.02) $ (0.80) As of December 31, 2021, total unrecognized estimated compensation expense related to awards granted prior to that date was $180.0 million, which is expected to be recognized over a weighted average period of 1.4 years. Forfeitures of awards are accounted for as they occur. 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 the date of grant or acquisition date, and expected dividends. The stock-based compensation expense for options was recorded ratably over the requisite service period. As of December 31, 2021, there is no unrecognized estimated compensation cost related to unvested stock options. Information regarding stock option transactions is summarized below: Year Ended December 31, 2021 2020 2019 (options in thousands) Options Weighted- Options Weighted- Options Weighted- Outstanding, beginning of year 648 $ 74.26 984 $ 67.49 1,484 $ 62.80 Granted — $ — — $ — — $ — Exercised (270) $ 61.42 (336) $ 54.43 (495) $ 53.53 Forfeited (3) $ 55.46 — $ — (5) $ 64.21 Outstanding, end of year 375 $ 83.67 648 $ 74.26 984 $ 67.49 Vested and Exercisable, end of year 375 $ 83.67 648 $ 74.26 924 $ 65.71 Nonvested — $ — — $ — 60 $ 94.77 2021 2020 2019 Weighted Average Remaining Contractual Term (in years) Outstanding 3.09 2.93 3.18 Vested and Exercisable 3.09 2.93 2.95 Nonvested 0.00 0.00 6.71 Aggregate Intrinsic Value (in thousands) Exercised $ 82,790 $ 78,269 $ 72,098 Outstanding $ 118,995 $ 187,679 $ 186,926 Vested and Exercisable $ 118,995 $ 187,679 $ 177,111 Nonvested $ — $ — $ 9,815 Compensation Expense - Stock Options (in thousands) $ — $ 1,030 $ 1,709 Information regarding stock options outstanding as of December 31, 2021 is summarized below: (options in thousands) Options Outstanding & Exercisable Range of Exercise Prices Options Weighted- Weighted- $12.26 - $24.42 1 1.86 $ 20.50 $67.44 146 0.86 $ 67.44 $78.56 - $94.15 19 2.84 $ 85.93 $95.09 209 4.67 $ 95.09 There were no unvested stock options as of December 31, 2021. Restricted Stock Units Under the terms of the 2021 Plan, we issue various restricted stock unit awards (RSUs). The following table summarizes the types of awards and vesting conditions: Award Vesting Period Vesting Condition Restricted stock units with a service condition only Three years Continued employment through the vesting period. One third vests annually. Restricted stock units with an operating performance and service condition Three years Operating performance metrics as defined at the beginning of each sub-performance period and subject to continued employment through the vesting period. 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 performance period and subject to continued employment through the vesting period. 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 straight-line over the vesting period. 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 vesting period based on management's estimates concerning the probability of operating performance metric achievement. The fair values of 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 2021 2020 2019 Risk-free interest rate 0.3% 0.7% 2.5% Expected dividend yield —% —% —% Expected volatility—Ansys stock price 36% 25% 23% Expected volatility—Nasdaq Composite Index 26% 18% 16% Expected term 2.8 years 2.8 years 2.8 years Correlation factor 0.84 0.77 0.71 Weighted average fair value per share $238.87 $245.08 $238.99 Total compensation expense for employee RSU awards recorded for the years ended December 31, 2021, 2020 and 2019 was $160.2 million, $138.3 million and $109.9 million, respectively. Information regarding all employee RSU transactions is summarized below: Year Ended December 31, 2021 2020 2019 (RSUs in thousands) RSUs Weighted- RSUs Weighted- RSUs Weighted- Nonvested, beginning of year 1,323 $ 201.98 1,618 $ 165.26 1,522 $ 129.96 Granted (1) 501 $ 333.50 501 $ 256.47 843 $ 192.37 Performance adjustment - awards with market condition (2) 17 $ 238.99 18 $ 191.76 12 $ 120.96 Performance adjustment - awards with performance condition (2) 63 $ 376.48 (10) $ 279.08 62 $ 176.89 Vested (793) $ 194.50 (742) $ 158.13 (704) $ 125.84 Forfeited (43) $ 263.13 (62) $ 193.28 (117) $ 140.43 Nonvested, end of year 1,068 $ 277.71 1,323 $ 201.98 1,618 $ 165.26 (1) Includes all RSUs granted during the year. RSUs with operating performance conditions are issued annually and have one performance cycle or three sub-performance cycles. Performance conditions are assigned near the beginning of each performance cycle or sub-performance cycle, as applicable, and awards are reflected as grants at the target number of units 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 Prior to 2016, 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, 2021 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 6,998 58,681 65,679 Shares Diversified — — — Shares Issued Upon Retirement — (1,857) (1,857) Deferred Awards Outstanding, end of year 6,998 56,824 63,822 Year Ended December 31, 2020 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 5,598 60,081 65,679 Shares Diversified 1,400 (1,400) — Deferred Awards Outstanding, end of year 6,998 58,681 65,679 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 Information regarding RSU awards to non-employee Directors is summarized below: Year Ended December 31, 2021 2020 2019 BOD RSUs Weighted- BOD RSUs Weighted- BOD RSUs Weighted- Nonvested, beginning of year 8,071 $ 253.93 9,688 $ 187.53 13,632 $ 165.71 Granted 6,576 $ 329.78 9,664 $ 253.40 11,259 $ 187.53 Vested (8,219) $ 255.06 (10,704) $ 193.35 (14,287) $ 166.71 Forfeited — $ — (577) $ 253.93 (916) $ 187.53 Nonvested, end of year 6,428 $ 330.08 8,071 $ 253.93 9,688 $ 187.53 The RSUs to non-employee Directors 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. Total compensation expense associated with the awards recorded for the years ended December 31, 2021, 2020 and 2019 was $2.1 million, $2.2 million and $2.5 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 of which 0.1 million shares are available for future purchases as of December 31, 2021. 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 |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Number of shares repurchased 347 690 330 Average price paid per share $ 388.35 $ 233.48 $ 179.41 Total cost $ 134,679 $ 161,029 $ 59,116 |
Royalty Agreements
Royalty Agreements | 12 Months Ended |
Dec. 31, 2021 | |
Royalty Agreements [Abstract] | |
Royalty Agreements | Royalty AgreementsWe 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 $36.9 million, $29.6 million and $22.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 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 was as follows: Year Ended December 31, (in thousands) 2021 2020 2019 United States $ 867,125 $ 776,716 $ 637,916 Japan 193,096 183,117 162,154 Germany 158,541 160,771 158,809 South Korea 105,853 74,953 90,082 Other EMEA 359,074 307,933 279,744 Other international 223,026 177,807 187,187 Total revenue $ 1,906,715 $ 1,681,297 $ 1,515,892 Property and equipment by geographic area was as follows: December 31, (in thousands) 2021 2020 United States $ 62,880 $ 65,633 India 6,144 7,408 Germany 4,434 5,277 France 4,217 5,749 Other EMEA 4,998 5,847 Other international 5,241 6,589 Total property and equipment, net $ 87,914 $ 96,503 |
Unconditional Purchase Obligati
Unconditional Purchase Obligations | 12 Months Ended |
Dec. 31, 2021 | |
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 minimum royalty contracts, software licenses and support, and network services. We expended $44.9 million, $37.2 million and $24.2 million related to unconditional purchase obligations that existed as of the beginning of each year for the years ended December 31, 2021, 2020 and 2019, respectively. Future expenditures under unconditional purchase obligations in effect as of December 31, 2021 are as follows: (in thousands) 2022 $ 54,788 2023 12,858 2024 4,671 2025 1,759 2026 1,119 Total $ 75,195 |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments We are subject to various claims, investigations, and legal and regulatory proceedings that arise in the ordinary course of business, including, but not limited to, 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 $7.5 million. As such charges are not probable at this time, a reserve has not been recorded on the consolidated balance sheet as of December 31, 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 $7.5 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, by third parties, of infringement or misappropriation of their intellectual property rights 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, 2021 | |
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 Additions: Deductions: Balance at Year ended December 31, 2021 Allowance for doubtful accounts $ 14,000 $ 1,006 $ 406 $ 14,600 Year ended December 31, 2020 Allowance for doubtful accounts $ 8,700 $ 6,438 $ 1,138 $ 14,000 Year ended December 31, 2019 Allowance for doubtful accounts $ 8,000 $ 2,928 $ 2,228 $ 8,700 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States. Certain items in 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 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 consolidated financial statements. |
Accounting Guidance Issued And Not Yet Adopted | Accounting Guidance Issued and Not Yet Adopted Business combinations: In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , as if the acquirer had originated the contracts. Under the current guidance, such assets and liabilities are recognized by the acquirer at fair value on the acquisition date. ASU 2021-08 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted, including in an interim period, for any period for which financial statements have not yet been issued. We adopted the standard effective January 1, 2022. The standard will not impact acquired contract assets or liabilities from business combinations occurring prior to the effective date of adoption, and the impact in future periods will depend on the contract assets and contract liabilities acquired in future business combinations. |
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: • Contract revenue • Standalone selling prices of our products and services • Allowance for doubtful accounts receivable • Valuation of goodwill and other intangible assets • Useful lives for depreciation and amortization • Acquired deferred revenue • Operating lease assets and liabilities • Fair values of stock awards • Deferred compensation • Income taxes • Uncertain tax positions • Tax valuation reserves • Contingencies and litigation 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 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. 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 and 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. 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. 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 is the principal to the transaction with the end-user. 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 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. |
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, 2021 December 31, 2020 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 580,047 86.9 $ 571,587 62.6 Money market funds 87,620 13.1 341,085 37.4 Total $ 667,667 $ 912,672 |
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, |
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 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 $76.0 million, $57.2 million and $36.9 million for the years ended December 31, 2021, 2020 and 2019, 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. 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 year ended December 31, 2021 that would indicate that the fair values of our reporting unit and indefinite-lived intangible asset are below their carrying amounts. |
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) 2021 2020 2019 Revenue from channel partners 24 % 22 % 23 % No single customer or channel partner accounted for more than 5% of our revenue in 2021, 2020 or 2019. 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) 2021 2020 Cash and cash equivalents held domestically $ 365,390 $ 582,882 Cash and cash equivalents held by foreign subsidiaries 302,277 329,790 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 652,830 887,886 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 201,524 396,430 |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts Allowance for Doubtful Accounts Policy 2021 and 2020 On January 1, 2020, we adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires us to use the current expected credit loss methodology to make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables over the lifetime of the receivables. 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. In determining these percentages, we consider our historical loss experience, current economic trends and future conditions. The changes in the allowance for doubtful accounts during the years ended December 31, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 14,000 $ 8,700 Additions: Charges to costs and expenses 1,006 6,438 Deductions: Write-offs (406) (1,138) Ending balance – December 31 $ 14,600 $ 14,000 Allowance for Doubtful Accounts Policy 2019 Under previous guidance, we made judgments as to our ability to collect outstanding receivables and provided allowances for a portion of receivables when collection became doubtful. Provisions were made based upon a specific review of all significant outstanding invoices from both value and delinquency perspectives. For those invoices not specifically reviewed, provisions were estimated at differing rates based upon the age of the receivable and the geographic area of origin. In determining these percentages, we considered our historical collection experience and current economic trends in the customer's industry and geographic region. We recorded provisions for bad debts of $1.0 million, $6.4 million and $2.9 million for the years ended December 31, 2021, 2020 and 2019, 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 income (expense), net. We recorded net foreign exchange losses of $1.8 million, $0.2 million and $2.5 million for the years ended December 31, 2021, 2020 and 2019, 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) 2021 2020 2019 Net income $ 454,627 $ 433,887 $ 451,295 Weighted average shares outstanding – basic 87,100 85,840 84,259 Dilutive effect of stock plans 1,002 1,448 1,666 Weighted average shares outstanding – diluted 88,102 87,288 85,925 Basic earnings per share $ 5.22 $ 5.05 $ 5.36 Diluted earnings per share $ 5.16 $ 4.97 $ 5.25 Anti-dilutive shares 23 23 14 |
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 InstrumentsWe 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. Our term loans are variable rate debt obligations and, therefore, the carrying amounts approximate the fair values. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary Of Cash And Cash Equivalents | Our cash and cash equivalents balances comprise the following: December 31, 2021 December 31, 2020 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 580,047 86.9 $ 571,587 62.6 Money market funds 87,620 13.1 341,085 37.4 Total $ 667,667 $ 912,672 |
Allowance for Doubtful Accounts Rollforward | The changes in the allowance for doubtful accounts during the years ended December 31, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 14,000 $ 8,700 Additions: Charges to costs and expenses 1,006 6,438 Deductions: Write-offs (406) (1,138) Ending balance – December 31 $ 14,600 $ 14,000 |
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) 2021 2020 2019 Net income $ 454,627 $ 433,887 $ 451,295 Weighted average shares outstanding – basic 87,100 85,840 84,259 Dilutive effect of stock plans 1,002 1,448 1,666 Weighted average shares outstanding – diluted 88,102 87,288 85,925 Basic earnings per share $ 5.22 $ 5.05 $ 5.36 Diluted earnings per share $ 5.16 $ 4.97 $ 5.25 Anti-dilutive shares 23 23 14 |
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) 2021 2020 2019 Revenue from channel partners 24 % 22 % 23 % |
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) 2021 2020 Cash and cash equivalents held domestically $ 365,390 $ 582,882 Cash and cash equivalents held by foreign subsidiaries 302,277 329,790 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 652,830 887,886 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 201,524 396,430 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue: Year Ended December 31, (in thousands) 2021 2020 2019 Revenue: Lease licenses $ 617,643 $ 500,105 $ 406,043 Perpetual licenses 328,154 280,745 293,587 Software licenses 945,797 780,850 699,630 Maintenance 896,037 840,597 760,574 Service 64,881 59,850 55,688 Maintenance and service 960,918 900,447 816,262 Total revenue $ 1,906,715 $ 1,681,297 $ 1,515,892 Direct revenue, as a percentage of total revenue 76.3 % 77.8 % 77.1 % Indirect revenue, as a percentage of total revenue 23.7 % 22.2 % 22.9 % |
Changes in Deferred Revenue | The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the years ended December 31, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance – January 1 $ 388,810 $ 365,274 Acquired deferred revenue 3,831 6,872 Deferral of revenue 1,937,974 1,687,907 Recognition of deferred revenue (1,906,715) (1,681,297) Currency translation (11,119) 10,054 Ending balance – December 31 $ 412,781 $ 388,810 |
Remaining Performance Obligations, Expected Timing of Satisfaction | Total revenue allocated to remaining performance obligations as of December 31, 2021 will be recognized as revenue as follows: (in thousands) Next 12 months $ 764,862 Months 13-24 253,226 Months 25-36 158,281 Thereafter 81,491 Total revenue allocated to remaining performance obligations $ 1,257,860 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Fair Value of Consideration Transferred | Fair Value of Consideration Transferred: (in thousands) Zemax Other Acquisitions Total Cash $ 411,471 $ 110,739 $ 522,210 Fair Value of Consideration Transferred: (in thousands) AGI Lumerical Total Cash $ 495,066 $ 107,545 $ 602,611 Ansys common stock (1) 222,236 — 222,236 Consideration not yet paid 2,787 — 2,787 Total consideration transferred at fair value $ 720,089 $ 107,545 $ 827,634 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Zemax Other Acquisitions Total Cash $ 12,353 $ 4,320 $ 16,673 Accounts receivable and other tangible assets 7,069 2,978 $ 10,047 Developed software and core technologies (11 year weighted-average life) 96,000 32,200 $ 128,200 Customer lists (8 year weighted-average life) 10,000 2,300 $ 12,300 Trade names (10 year weighted-average life) 7,000 1,000 $ 8,000 Accounts payable and other liabilities (4,757) (2,852) $ (7,609) Deferred revenue (3,085) (746) $ (3,831) Net deferred tax liabilities (24,609) (7,509) $ (32,118) Total identifiable net assets $ 99,971 $ 31,691 $ 131,662 Goodwill $ 311,500 $ 79,048 $ 390,548 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) AGI Lumerical Total Cash $ 17,663 $ 11,844 $ 29,507 Accounts receivable and other tangible assets 28,677 4,244 32,921 Developed software and core technologies 184,100 31,614 215,714 Customer lists 25,400 1,616 27,016 Trade names 18,200 1,756 19,956 Accounts payable and other liabilities (23,576) (1,148) (24,724) Deferred revenue (5,467) (1,405) (6,872) Net deferred tax liabilities (52,473) (7,452) (59,925) Total identifiable net assets $ 192,524 $ 41,069 $ 233,593 Goodwill $ 527,565 $ 66,476 $ 594,041 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired with the Zemax acquisition are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 11 years Multi-period excess earnings Discount rate: 7.5% Trade names 10 years Relief-from-royalty Royalty rate: 2.0% Discount rate: 8.0% Customer lists 8 years Multi-period excess earnings Attrition rate: 10.0% Discount rate: 7.5% The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired with the AGI acquisition are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 10 years Relief-from-royalty Royalty rate: 40.0% Discount rate: 11.0% Trade names 9 years Relief-from-royalty Royalty rate: 1.0% - 2.0% Discount rate: 11.0% Customer lists 15 years Multi-period excess earnings Attrition rate: 10.0% Discount rate: 12.0% The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired with the Lumerical acquisition are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 10 years Multi-period excess earnings Discount rate: 16.5% Trade names 6 years Relief-from-royalty Royalty rate: 2.0% Discount rate: 16.5% Customer lists 10 years Multi-period excess earnings Attrition rate: 10.0% Discount rate: 12.5% |
Other Receivables and Current_2
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, (in thousands) 2021 2020 Receivables related to unrecognized revenue $ 200,888 $ 192,154 Income taxes receivable, including overpayments and refunds 71,332 31,628 Prepaid expenses and other current assets 52,435 44,740 Total other receivables and current assets $ 324,655 $ 268,522 Consumption, sales and VAT tax liabilities $ 52,630 $ 45,156 Accrued expenses and other current liabilities 151,879 154,310 Total other accrued expenses and liabilities $ 204,509 $ 199,466 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property and Equipment | Property and equipment consists of the following: December 31, (in thousands) Estimated Useful Lives 2021 2020 Equipment 1-15 years $ 127,093 $ 123,139 Computer software 1-5 years 35,134 34,469 Buildings and improvements 2-40 years 38,391 38,332 Leasehold improvements 1-17 years 25,948 25,237 Furniture 1-11 years 14,773 14,902 Land 2,696 2,696 Property and equipment, gross 244,035 238,775 Less: Accumulated depreciation (156,121) (142,272) Property and equipment, net $ 87,914 $ 96,503 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets (Finite-Lived) | Intangible assets are classified as follows: December 31, 2021 December 31, 2020 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 985,685 $ (422,797) $ 859,620 $ (370,338) Customer lists 203,072 (57,175) 288,085 (136,093) Trade names 182,554 (128,577) 175,626 (122,392) Total $ 1,371,311 $ (608,549) $ 1,323,331 $ (628,823) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Intangible Assets (Indefinite-Lived) | Intangible assets are classified as follows: December 31, 2021 December 31, 2020 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 985,685 $ (422,797) $ 859,620 $ (370,338) Customer lists 203,072 (57,175) 288,085 (136,093) Trade names 182,554 (128,577) 175,626 (122,392) Total $ 1,371,311 $ (608,549) $ 1,323,331 $ (628,823) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Estimated Future Amortization Expense for Intangible Assets | As of December 31, 2021, estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) 2022 $ 84,264 2023 89,105 2024 90,178 2025 88,744 2026 87,187 Thereafter 323,284 Total intangible assets subject to amortization, net 762,762 Indefinite-lived trade name 357 Other intangible assets, net $ 763,119 |
Changes in Goodwill | The changes in goodwill during the years ended December 31, 2021 and 2020 were as follows: (in thousands) 2021 2020 Beginning balance - January 1 $ 3,038,306 $ 2,413,280 Acquisitions and adjustments (1) 391,534 596,054 Currency translation (20,569) 28,972 Ending balance - December 31 $ 3,409,271 $ 3,038,306 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, 2021 Quoted Prices in Significant Other Significant Assets Cash equivalents $ 87,620 $ 87,620 $ — $ — Short-term investments $ 361 $ — $ 361 $ — Deferred compensation plan investments $ 1,602 $ 1,602 $ — $ — Equity securities $ 2,500 $ 2,500 $ — $ — 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) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of our global lease cost reflected in the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019 are as follows: (in thousands) 2021 2020 2019 Lease liability cost $ 28,357 $ 24,818 $ 22,507 Variable lease cost not included in the lease liability (1) 4,085 5,067 3,754 Total lease cost $ 32,442 $ 29,885 $ 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 years ended December 31, 2021, 2020, and 2019 is as follows: (in thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (28,474) $ (22,470) $ (20,031) Right-of-use assets obtained in exchange for new operating lease liabilities $ 13,586 $ 48,248 $ 35,191 As of December 31, 2021 2020 Weighted-average remaining lease term of operating leases 7.2 years 7.3 years Weighted-average discount rate of operating leases 3.0 % 2.9 % |
Schedule of Maturity of Operating Lease Liabilities | The maturity schedule of the operating lease liabilities as of December 31, 2021 is as follows: (in thousands) 2022 $ 25,856 2023 20,196 2024 18,664 2025 17,269 2026 15,175 Thereafter 44,669 Total future lease payments 141,829 Less: Present value adjustment (14,610) Present value of future lease payments (1) $ 127,219 (1) Includes the current portion of operating lease liabilities of $22.8 million, which is reflected in other accrued expenses and liabilities |
Debt (Table)
Debt (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Debt | As of December 31, 2021, scheduled maturities of total debt for each of the three succeeding fiscal years are as follows: (in thousands) 2022 $ — 2023 37,250 2024 717,750 Total $ 755,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Income Taxes | Income before income tax provision included the following components: Year Ended December 31, (in thousands) 2021 2020 2019 Domestic $ 460,395 $ 465,382 $ 448,271 Foreign 54,959 28,543 74,312 Total $ 515,354 $ 493,925 $ 522,583 |
Components Of Provision For Income Taxes | The provision for income taxes was composed of the following: Year Ended December 31, (in thousands) 2021 2020 2019 Current: Federal $ 44,805 $ 26,855 $ 44,824 State 6,626 12,738 9,554 Foreign 43,786 51,377 31,421 Deferred: Federal (32,449) (12,203) (8,833) State (1,691) (2,119) (965) Foreign (350) (16,610) (4,713) Total $ 60,727 $ 60,038 $ 71,288 |
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, 2021 2020 2019 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Nondeductible expenses 2.8 0.7 0.5 State income taxes, net of federal benefit 0.6 1.6 1.5 Foreign rate differential 0.6 0.4 0.8 Valuation allowance release — (0.8) (1.3) Benefit from tax planning and entity structuring activities (1.3) (1.5) — Research and development credits (3.1) (3.2) (2.2) Foreign-derived intangible income deduction (4.0) (2.8) (3.8) Stock-based compensation (5.4) (3.6) (3.1) Other 0.6 0.4 0.2 11.8 % 12.2 % 13.6 % |
Components Of Deferred Tax Assets And Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, (in thousands) 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 47,235 $ 47,551 Uncertain tax positions 35,574 18,565 Operating lease liabilities 30,634 34,803 Stock-based compensation 25,578 24,738 Employee benefits 12,902 13,290 Research and development credits 5,393 9,847 Allowance for doubtful accounts 3,522 3,193 Other 1,960 6,856 Valuation allowance (14,936) (15,398) Total deferred tax assets 147,862 143,445 Deferred tax liabilities: Other intangible assets (173,895) (147,960) Operating lease right-of-use assets (29,296) (33,304) Deferred revenue (19,521) (26,839) Property and equipment (5,785) (6,052) Accounting method change (34) (10,781) Total deferred tax liabilities (228,531) (224,936) Net deferred tax liabilities $ (80,669) $ (81,491) |
Reconciliation Of Unrecognized Tax Benefits | The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ended December 31, (in thousands) 2021 2020 2019 Unrecognized tax benefit as of January 1 $ 24,075 $ 49,085 $ 22,827 Gross changes—acquisitions — (24,963) 26,914 Gross increases—tax positions in prior period 10,183 1,572 207 Gross decreases—tax positions in prior period (2,281) — (1,743) Gross increases—tax positions in current period 13,223 1,281 3,563 Reductions due to a lapse of the applicable statute of limitations (3,226) (3,502) (2,230) Changes due to currency fluctuation (912) 994 (453) Settlements (1,421) (392) — Unrecognized tax benefit as of December 31 $ 39,641 $ 24,075 $ 49,085 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 is as follows: Year Ended December 31, (in thousands, except per share amounts) 2021 2020 2019 Cost of sales: Maintenance and service 12,390 13,626 8,494 Operating expenses: Selling, general and administrative 91,772 73,491 60,639 Research and development 62,176 58,498 47,057 Stock-based compensation expense before taxes 166,338 145,615 116,190 Related income tax benefits (75,241) (56,485) (47,454) Stock-based compensation expense, net of taxes $ 91,097 $ 89,130 $ 68,736 Net impact on earnings per share: Basic earnings per share $ (1.05) $ (1.04) $ (0.82) Diluted earnings per share $ (1.03) $ (1.02) $ (0.80) |
Summary of Stock Options | Information regarding stock option transactions is summarized below: Year Ended December 31, 2021 2020 2019 (options in thousands) Options Weighted- Options Weighted- Options Weighted- Outstanding, beginning of year 648 $ 74.26 984 $ 67.49 1,484 $ 62.80 Granted — $ — — $ — — $ — Exercised (270) $ 61.42 (336) $ 54.43 (495) $ 53.53 Forfeited (3) $ 55.46 — $ — (5) $ 64.21 Outstanding, end of year 375 $ 83.67 648 $ 74.26 984 $ 67.49 Vested and Exercisable, end of year 375 $ 83.67 648 $ 74.26 924 $ 65.71 Nonvested — $ — — $ — 60 $ 94.77 2021 2020 2019 Weighted Average Remaining Contractual Term (in years) Outstanding 3.09 2.93 3.18 Vested and Exercisable 3.09 2.93 2.95 Nonvested 0.00 0.00 6.71 Aggregate Intrinsic Value (in thousands) Exercised $ 82,790 $ 78,269 $ 72,098 Outstanding $ 118,995 $ 187,679 $ 186,926 Vested and Exercisable $ 118,995 $ 187,679 $ 177,111 Nonvested $ — $ — $ 9,815 Compensation Expense - Stock Options (in thousands) $ — $ 1,030 $ 1,709 |
Summary of Types of Awards and Vesting Conditions | The following table summarizes the types of awards and vesting conditions: Award Vesting Period Vesting Condition Restricted stock units with a service condition only Three years Continued employment through the vesting period. One third vests annually. Restricted stock units with an operating performance and service condition Three years Operating performance metrics as defined at the beginning of each sub-performance period and subject to continued employment through the vesting period. 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 performance period and subject to continued employment through the vesting period. |
Summary of Restricted Stock Units | Information regarding all employee RSU transactions is summarized below: Year Ended December 31, 2021 2020 2019 (RSUs in thousands) RSUs Weighted- RSUs Weighted- RSUs Weighted- Nonvested, beginning of year 1,323 $ 201.98 1,618 $ 165.26 1,522 $ 129.96 Granted (1) 501 $ 333.50 501 $ 256.47 843 $ 192.37 Performance adjustment - awards with market condition (2) 17 $ 238.99 18 $ 191.76 12 $ 120.96 Performance adjustment - awards with performance condition (2) 63 $ 376.48 (10) $ 279.08 62 $ 176.89 Vested (793) $ 194.50 (742) $ 158.13 (704) $ 125.84 Forfeited (43) $ 263.13 (62) $ 193.28 (117) $ 140.43 Nonvested, end of year 1,068 $ 277.71 1,323 $ 201.98 1,618 $ 165.26 (1) Includes all RSUs granted during the year. RSUs with operating performance conditions are issued annually and have one performance cycle or three sub-performance cycles. Performance conditions are assigned near the beginning of each performance cycle or sub-performance cycle, as applicable, and awards are reflected as grants at the target number of units 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. |
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, 2021 is summarized below: (options in thousands) Options Outstanding & Exercisable Range of Exercise Prices Options Weighted- Weighted- $12.26 - $24.42 1 1.86 $ 20.50 $67.44 146 0.86 $ 67.44 $78.56 - $94.15 19 2.84 $ 85.93 $95.09 209 4.67 $ 95.09 |
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 2021 2020 2019 Risk-free interest rate 0.3% 0.7% 2.5% Expected dividend yield —% —% —% Expected volatility—Ansys stock price 36% 25% 23% Expected volatility—Nasdaq Composite Index 26% 18% 16% Expected term 2.8 years 2.8 years 2.8 years Correlation factor 0.84 0.77 0.71 Weighted average fair value per share $238.87 $245.08 $238.99 |
Diversified Deferred Stock Award | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Stock Awards To Non-Employee Directors | Information regarding deferred stock awards to non-employee Directors is summarized below: Year Ended December 31, 2021 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 6,998 58,681 65,679 Shares Diversified — — — Shares Issued Upon Retirement — (1,857) (1,857) Deferred Awards Outstanding, end of year 6,998 56,824 63,822 Year Ended December 31, 2020 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 5,598 60,081 65,679 Shares Diversified 1,400 (1,400) — Deferred Awards Outstanding, end of year 6,998 58,681 65,679 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 |
Director Restricted Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Stock Awards To Non-Employee Directors | Information regarding RSU awards to non-employee Directors is summarized below: Year Ended December 31, 2021 2020 2019 BOD RSUs Weighted- BOD RSUs Weighted- BOD RSUs Weighted- Nonvested, beginning of year 8,071 $ 253.93 9,688 $ 187.53 13,632 $ 165.71 Granted 6,576 $ 329.78 9,664 $ 253.40 11,259 $ 187.53 Vested (8,219) $ 255.06 (10,704) $ 193.35 (14,287) $ 166.71 Forfeited — $ — (577) $ 253.93 (916) $ 187.53 Nonvested, end of year 6,428 $ 330.08 8,071 $ 253.93 9,688 $ 187.53 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Number of shares repurchased 347 690 330 Average price paid per share $ 388.35 $ 233.48 $ 179.41 Total cost $ 134,679 $ 161,029 $ 59,116 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segments, Geographical Areas [Abstract] | |
Revenue By Geographic Area | Revenue by geographic area was as follows: Year Ended December 31, (in thousands) 2021 2020 2019 United States $ 867,125 $ 776,716 $ 637,916 Japan 193,096 183,117 162,154 Germany 158,541 160,771 158,809 South Korea 105,853 74,953 90,082 Other EMEA 359,074 307,933 279,744 Other international 223,026 177,807 187,187 Total revenue $ 1,906,715 $ 1,681,297 $ 1,515,892 |
Property and Equipment by Geographic Area | Property and equipment by geographic area was as follows: December 31, (in thousands) 2021 2020 United States $ 62,880 $ 65,633 India 6,144 7,408 Germany 4,434 5,277 France 4,217 5,749 Other EMEA 4,998 5,847 Other international 5,241 6,589 Total property and equipment, net $ 87,914 $ 96,503 |
Unconditional Purchase Obliga_2
Unconditional Purchase Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |
Unconditional Purchase Obligations | Future expenditures under unconditional purchase obligations in effect as of December 31, 2021 are as follows: (in thousands) 2022 $ 54,788 2023 12,858 2024 4,671 2025 1,759 2026 1,119 Total $ 75,195 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lease license to license revenue | 50.00% | ||
Lease license to maintenance revenue | 50.00% | ||
Amortization of intangible assets | $ 76,000 | $ 57,200 | $ 36,900 |
Provision for bad debts | 1,006 | 6,438 | 2,928 |
Net foreign exchange loss | $ (1,800) | $ (200) | $ (2,500) |
Customer Concentration Risk | |||
Number of channel partners with more than five percent of revenue | 0 | 0 | 0 |
Number of customers with more than five percent of revenue | 0 | 0 | 0 |
Minimum | |||
Property and equipment, estimated useful lives (years) | 1 year | ||
Finite-lived intangible asset, useful life | 2 years | ||
Maximum | |||
Property and equipment, estimated useful lives (years) | 40 years | ||
Finite-lived intangible asset, useful life | 17 years |
Accounting Policies - Summary o
Accounting Policies - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash accounts, Amount | $ 580,047 | $ 571,587 |
Money market funds, Amount | 87,620 | 341,085 |
Total | $ 667,667 | $ 912,672 |
Cash | ||
Percent Of Cash And Cash Equivalents | 86.90% | 62.60% |
Money Market Funds | ||
Percent Of Cash And Cash Equivalents | 13.10% | 37.40% |
Accounting Policies - Schedule
Accounting Policies - Schedule of Risk Concentration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
Total | $ 667,667 | $ 912,672 | |
Customer Concentration Risk | Revenue Benchmark | Channel Partner | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | 22.00% | 23.00% |
Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents held in excess of deposit insurance, foreign and domestic | $ 652,830 | $ 887,886 | |
Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic | 201,524 | 396,430 | |
United States | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total | 365,390 | 582,882 | |
Foreign | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total | $ 302,277 | $ 329,790 |
Accounting Policies - Allowance
Accounting Policies - Allowance for Doubtful Accounts Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance - January 1 | $ 14,000 | $ 8,700 | |
Additions: Charges to costs and expenses | 1,006 | 6,438 | $ 2,928 |
Deductions: Write-offs | (406) | (1,138) | |
Ending balance - December 31 | $ 14,600 | $ 14,000 | $ 8,700 |
Accounting Policies - Basic and
Accounting Policies - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Net income | $ 454,627 | $ 433,887 | $ 451,295 |
Weighted average shares outstanding - basic | 87,100 | 85,840 | 84,259 |
Dilutive effect of stock plans | 1,002 | 1,448 | 1,666 |
Weighted average shares outstanding - diluted | 88,102 | 87,288 | 85,925 |
Basic earnings per share | $ 5.22 | $ 5.05 | $ 5.36 |
Diluted earnings per share | $ 5.16 | $ 4.97 | $ 5.25 |
Anti-dilutive shares | 23 | 23 | 14 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Amount of revenue recognized from beginning deferred revenue and backlog | $ 606.8 | $ 569.8 |
Amount of revenue recognized from beginning deferred revenue | $ 372.1 | $ 351.4 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement [Line Items] | |||
Total revenue | $ 1,906,715 | $ 1,681,297 | $ 1,515,892 |
Lease licenses | |||
Statement [Line Items] | |||
Total revenue | 617,643 | 500,105 | 406,043 |
Perpetual licenses | |||
Statement [Line Items] | |||
Total revenue | 328,154 | 280,745 | 293,587 |
Software licenses | |||
Statement [Line Items] | |||
Total revenue | 945,797 | 780,850 | 699,630 |
Maintenance | |||
Statement [Line Items] | |||
Total revenue | 896,037 | 840,597 | 760,574 |
Service | |||
Statement [Line Items] | |||
Total revenue | 64,881 | 59,850 | 55,688 |
Maintenance and service | |||
Statement [Line Items] | |||
Total revenue | $ 960,918 | $ 900,447 | $ 816,262 |
Direct revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | |||
Statement [Line Items] | |||
Concentration risk, percentage | 76.30% | 77.80% | 77.10% |
Indirect revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | |||
Statement [Line Items] | |||
Concentration risk, percentage | 23.70% | 22.20% | 22.90% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | $ 388,810 | $ 365,274 |
Acquired deferred revenue | 3,831 | 6,872 |
Deferral of revenue | 1,937,974 | 1,687,907 |
Recognition of deferred revenue | (1,906,715) | (1,681,297) |
Currency translation | (11,119) | 10,054 |
Ending balance | $ 412,781 | $ 388,810 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations, Expected Timing of Satisfaction (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1,257,860 |
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 | $ 764,862 |
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 | $ 253,226 |
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]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 158,281 |
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]: 2025-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 81,491 |
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 (Details) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 01, 2020 | Apr. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash | $ 522,210 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 510,805 | $ 572,328 | $ 787,196 | |||
Acquisition costs | 6,000 | $ 5,100 | ||||
Zemax, LLC | ||||||
Percentage of shares acquired | 100.00% | |||||
Cash | $ 411,471 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 399,100 | |||||
Series of Individually Immaterial Business Acquisitions | ||||||
Cash | $ 110,739 | |||||
Analytical Graphics, Inc. | ||||||
Percentage of shares acquired | 100.00% | |||||
Cash | $ 720,100 | |||||
Lumerical | ||||||
Percentage of shares acquired | 100.00% | |||||
Cash | $ 107,500 |
Acquisitions - Fair Value of Co
Acquisitions - Fair Value of Consideration Transferred 2021 (Details) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2021 |
Cash | $ 522,210 | |
Zemax, LLC | ||
Cash | $ 411,471 | |
Other Acquisitions | ||
Cash | $ 110,739 |
Acquisitions - Recognized Amoun
Acquisitions - Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed 2021 (Details) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Cash | $ 16,673 | $ 29,507 | |
Accounts receivable and other tangible assets | 10,047 | 32,921 | |
Accounts payable and other liabilities | (7,609) | (24,724) | |
Deferred revenue | (3,831) | (6,872) | |
Net deferred tax liabilities | (32,118) | (59,925) | |
Total identifiable net assets | 131,662 | 233,593 | |
Goodwill | 390,548 | 594,041 | |
Developed Software and Core Technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 128,200 | 215,714 | |
Finite-lived intangible asset, useful life | 11 years | ||
Customer Lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 12,300 | 27,016 | |
Finite-lived intangible asset, useful life | 8 years | ||
Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 8,000 | $ 19,956 | |
Finite-lived intangible asset, useful life | 10 years | ||
Zemax, LLC | |||
Business Acquisition [Line Items] | |||
Cash | $ 12,353 | ||
Accounts receivable and other tangible assets | 7,069 | ||
Accounts payable and other liabilities | (4,757) | ||
Deferred revenue | (3,085) | ||
Net deferred tax liabilities | (24,609) | ||
Total identifiable net assets | 99,971 | ||
Goodwill | 311,500 | ||
Zemax, LLC | Developed Software and Core Technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 96,000 | ||
Finite-lived intangible asset, useful life | 11 years | ||
Zemax, LLC | Customer Lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 10,000 | ||
Finite-lived intangible asset, useful life | 8 years | ||
Zemax, LLC | Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 7,000 | ||
Finite-lived intangible asset, useful life | 10 years | ||
Other Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash | $ 4,320 | ||
Accounts receivable and other tangible assets | 2,978 | ||
Accounts payable and other liabilities | (2,852) | ||
Deferred revenue | (746) | ||
Net deferred tax liabilities | (7,509) | ||
Total identifiable net assets | 31,691 | ||
Goodwill | 79,048 | ||
Other Acquisitions | Developed Software and Core Technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 32,200 | ||
Other Acquisitions | Customer Lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 2,300 | ||
Other Acquisitions | Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 1,000 |
Acquisitions - Valuation Assump
Acquisitions - Valuation Assumptions and Weighted-Average Useful Life (Details) | Oct. 01, 2021 | Dec. 01, 2020 | Apr. 01, 2020 | Dec. 31, 2021 |
Developed Software and Core Technologies | ||||
Finite-lived intangible asset, useful life | 11 years | |||
Trade Names | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Customer Lists | ||||
Finite-lived intangible asset, useful life | 8 years | |||
Zemax, LLC | Developed Software and Core Technologies | ||||
Finite-lived intangible asset, useful life | 11 years | |||
Discount Rate | 7.50% | |||
Zemax, LLC | Trade Names | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Royalty Rate | 2.00% | |||
Discount Rate | 8.00% | |||
Zemax, LLC | Customer Lists | ||||
Finite-lived intangible asset, useful life | 8 years | |||
Discount Rate | 7.50% | |||
Attrition Rate | 10.00% | |||
Analytical Graphics, Inc. | Developed Software and Core Technologies | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Royalty Rate | 40.00% | |||
Discount Rate | 11.00% | |||
Analytical Graphics, Inc. | Trade Names | ||||
Finite-lived intangible asset, useful life | 9 years | |||
Discount Rate | 11.00% | |||
Analytical Graphics, Inc. | Customer Lists | ||||
Finite-lived intangible asset, useful life | 15 years | |||
Discount Rate | 12.00% | |||
Attrition Rate | 10.00% | |||
Analytical Graphics, Inc. | Minimum | Trade Names | ||||
Royalty Rate | 1.00% | |||
Analytical Graphics, Inc. | Maximum | Trade Names | ||||
Royalty Rate | 2.00% | |||
Lumerical | Developed Software and Core Technologies | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Discount Rate | 16.50% | |||
Lumerical | Trade Names | ||||
Finite-lived intangible asset, useful life | 6 years | |||
Royalty Rate | 2.00% | |||
Discount Rate | 16.50% | |||
Lumerical | Customer Lists | ||||
Finite-lived intangible asset, useful life | 10 years | |||
Discount Rate | 12.50% | |||
Attrition Rate | 10.00% |
Acquisitions - Fair Value of _2
Acquisitions - Fair Value of Consideration Transferred 2020 (Details) - USD ($) shares in Thousands, $ in Thousands | Dec. 01, 2020 | Apr. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash | $ 602,611 | |||
Ansys common stock | 222,236 | |||
Consideration not yet paid | 2,787 | |||
Total consideration transferred at fair value | 827,634 | |||
Analytical Graphics, Inc. | ||||
Cash | $ 495,066 | |||
Ansys common stock | 222,236 | |||
Consideration not yet paid | 2,787 | |||
Total consideration transferred at fair value | $ 720,089 | |||
Stock issued to prior owners of Analytical Graphics, Inc., amount | $ 3,888 | $ 218,348 | ||
Analytical Graphics, Inc. | Common Stock | ||||
Common stock issued to prior owners of Analytical Graphics, Inc., shares | 600 | 1 | 638 | |
Stock issued to prior owners of Analytical Graphics, Inc., amount | $ 7 | |||
Analytical Graphics, Inc. | Common Stock | Prior AGI Owners | ||||
Stock issued to prior owners of Analytical Graphics, Inc., amount | $ 217,700 | |||
Analytical Graphics, Inc. | Treasury Stock | ||||
Stock issued to prior owners of Analytical Graphics, Inc., amount | $ 819 | $ 233 | ||
Analytical Graphics, Inc. | Treasury Stock | Prior AGI Owners | ||||
Stock issued to prior owners of Analytical Graphics, Inc., amount | $ 4,500 | |||
Lumerical | ||||
Cash | $ 107,545 | |||
Total consideration transferred at fair value | $ 107,545 |
Acquisitions - Recognized Amo_2
Acquisitions - Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed 2020 (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 01, 2020 | Apr. 01, 2020 |
Cash | $ 16,673 | $ 29,507 | ||
Accounts receivable and other tangible assets | 10,047 | 32,921 | ||
Accounts payable and other liabilities | (7,609) | (24,724) | ||
Deferred revenue | (3,831) | (6,872) | ||
Net deferred tax liabilities | (32,118) | (59,925) | ||
Total identifiable net assets | 131,662 | 233,593 | ||
Goodwill | 390,548 | 594,041 | ||
Developed Software and Core Technologies | ||||
Finite-lived intangible assets | 128,200 | 215,714 | ||
Customer Lists | ||||
Finite-lived intangible assets | 12,300 | 27,016 | ||
Trade Names | ||||
Finite-lived intangible assets | $ 8,000 | $ 19,956 | ||
Analytical Graphics, Inc. | ||||
Cash | $ 17,663 | |||
Accounts receivable and other tangible assets | 28,677 | |||
Accounts payable and other liabilities | (23,576) | |||
Deferred revenue | (5,467) | |||
Net deferred tax liabilities | (52,473) | |||
Total identifiable net assets | 192,524 | |||
Goodwill | 527,565 | |||
Analytical Graphics, Inc. | Developed Software and Core Technologies | ||||
Finite-lived intangible assets | 184,100 | |||
Analytical Graphics, Inc. | Customer Lists | ||||
Finite-lived intangible assets | 25,400 | |||
Analytical Graphics, Inc. | Trade Names | ||||
Finite-lived intangible assets | $ 18,200 | |||
Lumerical | ||||
Cash | $ 11,844 | |||
Accounts receivable and other tangible assets | 4,244 | |||
Accounts payable and other liabilities | (1,148) | |||
Deferred revenue | (1,405) | |||
Net deferred tax liabilities | (7,452) | |||
Total identifiable net assets | 41,069 | |||
Goodwill | 66,476 | |||
Lumerical | Developed Software and Core Technologies | ||||
Finite-lived intangible assets | 31,614 | |||
Lumerical | Customer Lists | ||||
Finite-lived intangible assets | 1,616 | |||
Lumerical | Trade Names | ||||
Finite-lived intangible assets | $ 1,756 |
Other Receivables and Current_3
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | ||
Receivables related to unrecognized revenue | $ 200,888 | $ 192,154 |
Income taxes receivable, including overpayments and refunds | 71,332 | 31,628 |
Prepaid expenses and other current assets | 52,435 | 44,740 |
Total other receivables and current assets | 324,655 | 268,522 |
Consumption, sales and VAT tax liabilities | 52,630 | 45,156 |
Accrued expenses and other current liabilities | 151,879 | 154,310 |
Total other accrued expenses and liabilities | $ 204,509 | $ 199,466 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense related to property and equipment | $ 30.9 | $ 28 | $ 23.6 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 244,035 | $ 238,775 |
Less: Accumulated depreciation | (156,121) | (142,272) |
Property and equipment, net | 87,914 | 96,503 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 127,093 | 123,139 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 35,134 | 34,469 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 38,391 | 38,332 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 25,948 | 25,237 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,773 | 14,902 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,696 | $ 2,696 |
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 | Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives (years) | 2 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 | Buildings and 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) | 11 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization of intangible assets | $ 76,000 | $ 57,200 | $ 36,900 |
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 (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 1,371,311 | $ 1,323,331 |
Amortized intangible assets, accumulated amortization | (608,549) | (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 | 985,685 | 859,620 |
Amortized intangible assets, accumulated amortization | (422,797) | (370,338) |
Customer Lists | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 203,072 | 288,085 |
Amortized intangible assets, accumulated amortization | (57,175) | (136,093) |
Trade Names | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 182,554 | 175,626 |
Amortized intangible assets, accumulated amortization | $ (128,577) | $ (122,392) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 84,264 | |
2023 | 89,105 | |
2024 | 90,178 | |
2025 | 88,744 | |
2026 | 87,187 | |
Thereafter | 323,284 | |
Total intangible assets subject to amortization, net | 762,762 | |
Indefinite-lived trade name | 357 | |
Other intangible assets, net | $ 763,119 | $ 694,865 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 3,038,306 | $ 2,413,280 |
Acquisitions and adjustments | 391,534 | 596,054 |
Currency translation | (20,569) | 28,972 |
Ending balance | $ 3,409,271 | $ 3,038,306 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 87,620 | $ 341,085 |
Short-term investments | 361 | 479 |
Deferred compensation plan investments | 1,602 | 1,602 |
Equity securities | 2,500 | |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 87,620 | 341,085 |
Short-term investments | 0 | 0 |
Deferred compensation plan investments | 1,602 | 1,602 |
Equity securities | 2,500 | |
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 | 361 | 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 (Details) | 12 Months Ended |
Dec. 31, 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 (Details) $ in Millions | Dec. 31, 2021USD ($)ft² |
Lessee, Lease, Description [Line Items] | |
Current portion of operating lease liabilities | $ 22.8 |
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 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Lease liability cost | $ 28,357 | $ 24,818 | $ 22,507 |
Variable lease cost not included in the lease liability | 4,085 | 5,067 | 3,754 |
Total lease cost | $ 32,442 | $ 29,885 | $ 26,261 |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ (28,474) | $ (22,470) | $ (20,031) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 13,586 | $ 48,248 | $ 35,191 |
Weighted-average remaining lease term of operating leases | 7 years 2 months 12 days | 7 years 3 months 18 days | |
Weighted-average discount rate of operating leases | 3.00% | 2.90% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 25,856 | |
2023 | 20,196 | |
2024 | 18,664 | |
2025 | 17,269 | |
2026 | 15,175 | |
Thereafter | 44,669 | |
Total future lease payments | 141,829 | |
Less: Present value adjustment | (14,610) | |
Present value of future lease payments | $ 127,219 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued expenses and liabilities | Other accrued expenses and liabilities |
Debt (Details)
Debt (Details) - USD ($) | Jun. 30, 2021 | Jan. 06, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 01, 2020 | Nov. 01, 2019 |
Debt Disclosure [Line Items] | ||||||
Term loan principal repayment rate, initial | 1.25% | |||||
Term loan principal repayment rate, increased | 2.50% | |||||
Weighted-average interest rate over time | 1.37% | 2.09% | ||||
Weighted-average interest rate at a point in time | 1.35% | |||||
Consolidated leverage ratio | 3.50 | |||||
Consolidated leverage ratio increased | 4 | |||||
Qualified acquisition amount | $ 250,000,000 | |||||
Long-term debt | 753,576,000 | $ 798,118,000 | ||||
Unamortized debt issuance cost | 1,400,000 | $ 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 | |||||
Early repayment of debt due in 2023 | $ 200,000 | |||||
Revolving Credit Facility | ||||||
Debt Disclosure [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |||||
Outstanding borrowings under the credit agreement | 0 | |||||
Letter of Credit | ||||||
Debt Disclosure [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||
Base Rate | ||||||
Debt Disclosure [Line Items] | ||||||
Debt instrument, basis spread 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% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 37,250 |
2024 | 717,750 |
Total | $ 755,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Deferred tax assets, operating loss carryforwards, state and local | $ 2,200 | ||
Tax credit carryforwards | 6,600 | ||
Cumulative temporary difference, permanently reinvested earnings | 70,000 | ||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 3,500 | ||
Unrecognized tax benefits that would impact effective tax rate | 16,400 | ||
Penalty expense | 1,800 | $ 200 | $ 500 |
Interest (income) expense | (200) | 300 | $ 100 |
Liability for penalties | 7,200 | 5,500 | |
Liability for interest | 5,200 | $ 5,400 | |
Subject To Expiration | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | 5,600 | ||
Subject To Utilization Limitations | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | 1,100 | ||
Not Subject To Expiration | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | 1,000 | ||
Federal Domestic | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 14,800 | ||
Foreign Country | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 173,200 | ||
Operating Loss Carryforward With No Expiration Date | Federal Domestic | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 13,400 | ||
Operating Loss Carryforward With No Expiration Date | Foreign Country | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 141,300 | ||
Subject To Expiration | Federal Domestic | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 1,400 | ||
Subject To Expiration | Foreign Country | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 31,900 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 460,395 | $ 465,382 | $ 448,271 |
Foreign | 54,959 | 28,543 | 74,312 |
Income before income tax provision | $ 515,354 | $ 493,925 | $ 522,583 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 44,805 | $ 26,855 | $ 44,824 |
Current, State | 6,626 | 12,738 | 9,554 |
Current, Foreign | 43,786 | 51,377 | 31,421 |
Deferred, Federal | (32,449) | (12,203) | (8,833) |
Deferred, State | (1,691) | (2,119) | (965) |
Deferred, Foreign | (350) | (16,610) | (4,713) |
Total | $ 60,727 | $ 60,038 | $ 71,288 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Consolidated Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Nondeductible expenses | 2.80% | 0.70% | 0.50% |
State income taxes, net of federal benefit | 0.60% | 1.60% | 1.50% |
Foreign rate differential | 0.60% | 0.40% | 0.80% |
Valuation allowance release | 0.00% | (0.80%) | (1.30%) |
Benefit from tax planning and entity structuring activities | (1.30%) | (1.50%) | 0.00% |
Research and development credits | (3.10%) | (3.20%) | (2.20%) |
Foreign-derived intangible income deduction | (4.00%) | (2.80%) | (3.80%) |
Stock-based compensation | (5.40%) | (3.60%) | (3.10%) |
Other | 0.60% | 0.40% | 0.20% |
Consolidated effective tax rate | 11.80% | 12.20% | 13.60% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 47,235 | $ 47,551 |
Uncertain tax positions | 35,574 | 18,565 |
Operating lease liabilities | 30,634 | 34,803 |
Stock-based compensation | 25,578 | 24,738 |
Employee benefits | 12,902 | 13,290 |
Research and development credits | 5,393 | 9,847 |
Allowance for doubtful accounts | 3,522 | 3,193 |
Other | 1,960 | 6,856 |
Valuation allowance | (14,936) | (15,398) |
Total deferred tax assets | 147,862 | 143,445 |
Other intangible assets | (173,895) | (147,960) |
Operating lease right-of-use assets | (29,296) | (33,304) |
Deferred revenue | (19,521) | (26,839) |
Property and equipment | (5,785) | (6,052) |
Accounting method change | (34) | (10,781) |
Total deferred tax liabilities | (228,531) | (224,936) |
Net deferred tax liabilities | $ (80,669) | $ (81,491) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit as of January 1 | $ 24,075 | $ 49,085 | $ 22,827 |
Gross decreases-acquisitions | 0 | (24,963) | |
Gross increases-acquisitions | 26,914 | ||
Gross increases-tax positions in prior period | 10,183 | 1,572 | 207 |
Gross decreases-tax positions in prior period | (2,281) | 0 | (1,743) |
Gross increases-tax positions in current period | 13,223 | 1,281 | 3,563 |
Reductions due to a lapse of the applicable statute of limitations | (3,226) | (3,502) | (2,230) |
Changes due to currency fluctuation | (912) | (453) | |
Changes due to currency fluctuation | 994 | ||
Settlements | (1,421) | (392) | 0 |
Unrecognized tax benefit as of December 31 | $ 39,641 | $ 24,075 | $ 49,085 |
Pension And Profit-Sharing Pl_2
Pension And Profit-Sharing Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)h | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Total unfunded portion of the defined benefit obligations | $ 9.2 | $ 13.5 | |
Expenses related to retirement programs | $ 20 | $ 18.7 | $ 16.3 |
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 | h | 1,000 | ||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
2021 Plan number of shares authorized | 4,400,000 | ||
Predecessor Plan shares that remained available for issuance | 1,600,000 | ||
Maximum months after sale event where awards fully vest when service relationship terminated without cause | 18 months | ||
Total unrecognized estimated unvested stock awards | $ 180,000,000 | ||
Weighted-average period of recognition of unrecognized compensation cost (years) | 1 year 4 months 24 days | ||
Stock-based compensation expense | $ 166,338,000 | $ 145,615,000 | $ 116,190,000 |
Performance Shares | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 3 years | ||
Restricted Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 160,200,000 | 138,300,000 | 109,900,000 |
Restricted Stock Units (RSUs) | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 3 years | ||
Director Restricted Stock Units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,100,000 | 2,200,000 | 2,500,000 |
Market and Service Condition Stock Units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Restricted stock unit vesting period | 3 years | ||
Maximum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expiration period of options from the date of grant | 10 years | ||
ANSYS 1996 Employee Stock Purchase Plan | Employee Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Predecessor Plan shares that remained available for issuance | 1,800,000 | ||
Expiration period of options from the date of grant | 6 months | ||
Stock-based compensation expense | $ 4,000,000 | $ 4,100,000 | $ 2,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 100,000 | ||
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 | 1,700,000 | ||
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 - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 166,338 | $ 145,615 | $ 116,190 |
Related income tax benefits | (75,241) | (56,485) | (47,454) |
Stock-based compensation expense, net of taxes | $ 91,097 | $ 89,130 | $ 68,736 |
Basic earnings per share (in dollars per share) | $ (1.05) | $ (1.04) | $ (0.82) |
Diluted earnings per share (in dollars per share) | $ (1.03) | $ (1.02) | $ (0.80) |
Maintenance and service | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 12,390 | $ 13,626 | $ 8,494 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | 91,772 | 73,491 | 60,639 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 62,176 | $ 58,498 | $ 47,057 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 (in dollars per share) | $ 74.26 | $ 67.49 | $ 62.80 |
Granted, Weighted-Average Exercise Price (in dollars per share) | 0 | 0 | 0 |
Exercised, Weighted-Average Exercise Price (in dollars per share) | 61.42 | 54.43 | 53.53 |
Forfeited, Weighted-Average Exercise Price (in dollars per share) | 55.46 | 0 | 64.21 |
Outstanding, end of year, Weighted-Average Exercise Price (in dollars per share) | 83.67 | 74.26 | 67.49 |
Vested and Exercisable, end of year, Weighted-Average Exercise Price (in dollars per share) | 83.67 | 74.26 | 65.71 |
Nonvested, Weighted-Average Exercise Price (in dollars per share) | $ 0 | $ 0 | $ 94.77 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of year, Options (in shares) | 648 | 984 | 1,484 |
Granted, Options (in shares) | 0 | 0 | 0 |
Exercised, Options (in shares) | (270) | (336) | (495) |
Forfeited, Options (in shares) | (3) | 0 | (5) |
Outstanding, end of year, Options (in shares) | 375 | 648 | 984 |
Vested and Exercisable, end of year, Options (in shares) | 375 | 648 | 924 |
Nonvested, Options (in shares) | 0 | 0 | 60 |
Outstanding, Weighted-Average Remaining Contractual Term (in years) | 3 years 1 month 2 days | 2 years 11 months 4 days | 3 years 2 months 4 days |
Vested and Exercisable, Weighted-Average Remaining Contractual Term (in years) | 3 years 1 month 2 days | 2 years 11 months 4 days | 2 years 11 months 12 days |
Nonvested, Weighted-Average Remaining Contractual Term (in years) | 0 years | 0 years | 6 years 8 months 15 days |
Exercised, Aggregate Intrinsic Value | $ 82,790 | $ 78,269 | $ 72,098 |
Outstanding, Aggregate Intrinsic Value | 118,995 | 187,679 | 186,926 |
Vested and Exercisable, Aggregate Intrinsic Value | 118,995 | 187,679 | 177,111 |
Nonvested, Aggregate Intrinsic Value | 0 | 0 | 9,815 |
Compensation Expense - Stock Options (in thousands) | $ 0 | $ 1,030 | $ 1,709 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information Regarding Stock Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
$12.26 - $24.42 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (in dollars per share) | $ 12.26 |
Range of Exercise Prices, Upper Limit (in dollars per share) | $ 24.42 |
Options Outstanding, Options (in shares) | shares | 1,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 1 year 10 months 9 days |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 20.50 |
$67.44 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (in dollars per share) | 67.44 |
Range of Exercise Prices, Upper Limit (in dollars per share) | $ 67.44 |
Options Outstanding, Options (in shares) | shares | 146,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 10 months 9 days |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 67.44 |
$78.56 - $94.15 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (in dollars per share) | 78.56 |
Range of Exercise Prices, Upper Limit (in dollars per share) | $ 94.15 |
Options Outstanding, Options (in shares) | shares | 19,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 2 years 10 months 2 days |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 85.93 |
$95.09 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (in dollars per share) | 95.09 |
Range of Exercise Prices, Upper Limit (in dollars per share) | $ 95.09 |
Options Outstanding, Options (in shares) | shares | 209,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 4 years 8 months 1 day |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 95.09 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions to Estimate Fair Value of Stock Awards (Details) - Restricted Stock Unit Compensation Expense - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk-free interest rate | 0.30% | 0.70% | 2.50% |
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 | 0.84 | 0.77 | 0.71 |
Weighted average fair value per share (in dollars per share) | $ 238.87 | $ 245.08 | $ 238.99 |
Ansys Stock Price | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility | 36.00% | 25.00% | 23.00% |
Nasdaq Composite Index | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility | 26.00% | 18.00% | 16.00% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 (in shares) | 1,323 | 1,618 | 1,522 |
Granted, RSUs (in shares) | 501 | 501 | 843 |
Performance adjustment, market condition, RSUs (in shares) | 17 | 18 | 12 |
Performance adjustment, performance condition, RSUs (in shares) | 63 | (10) | 62 |
Vested, RSUs (in shares) | (793) | (742) | (704) |
Forfeited, RSUs (in shares) | (43) | (62) | (117) |
Nonvested, end of year, RSUs (in shares) | 1,068 | 1,323 | 1,618 |
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 (in dollars per share) | $ 201.98 | $ 165.26 | $ 129.96 |
Granted, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 333.50 | 256.47 | 192.37 |
Performance adjustment, Market Condition, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 238.99 | 191.76 | 120.96 |
Performance adjustment, Performance Condition, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 376.48 | 279.08 | 176.89 |
Vested, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 194.50 | 158.13 | 125.84 |
Forfeited, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 263.13 | 193.28 | 140.43 |
Nonvested, end of year, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | $ 277.71 | $ 201.98 | $ 165.26 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Deferred Stock Awards to Non-Employee Directors (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Deferred awards outstanding, beginning of year (in shares) | 65,679 | 65,679 | 132,699 |
Shares diversified (in shares) | 0 | 0 | 0 |
Shares issued upon retirement (in shares) | (1,857) | (67,020) | |
Deferred awards outstanding, end of year (in shares) | 63,822 | 65,679 | 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 (in shares) | 6,998 | 5,598 | 12,250 |
Shares diversified (in shares) | 0 | 1,400 | 13,348 |
Shares issued upon retirement (in shares) | 0 | (20,000) | |
Deferred awards outstanding, end of year (in shares) | 6,998 | 6,998 | 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 (in shares) | 58,681 | 60,081 | 120,449 |
Shares diversified (in shares) | 0 | (1,400) | (13,348) |
Shares issued upon retirement (in shares) | (1,857) | (47,020) | |
Deferred awards outstanding, end of year (in shares) | 56,824 | 58,681 | 60,081 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Restricted Stock Units to Non-Employee Directors (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 (in shares) | 1,323 | 1,618 | 1,522 |
Granted, RSUs (in shares) | 501 | 501 | 843 |
Vested, RSUs (in shares) | (793) | (742) | (704) |
Forfeited, RSUs (in shares) | (43) | (62) | (117) |
Nonvested, end of year, RSUs (in shares) | 1,068 | 1,323 | 1,618 |
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 (in dollars per share) | $ 201.98 | $ 165.26 | $ 129.96 |
Granted, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 333.50 | 256.47 | 192.37 |
Vested, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 194.50 | 158.13 | 125.84 |
Forfeited, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 263.13 | 193.28 | 140.43 |
Nonvested, end of year, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | $ 277.71 | $ 201.98 | $ 165.26 |
Director Restricted Stock Units | |||
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 (in shares) | 8,071 | 9,688 | 13,632 |
Granted, RSUs (in shares) | 6,576 | 9,664 | 11,259 |
Vested, RSUs (in shares) | (8,219) | (10,704) | (14,287) |
Forfeited, RSUs (in shares) | 0 | (577) | (916) |
Nonvested, end of year, RSUs (in shares) | 6,428 | 8,071 | 9,688 |
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 (in dollars per share) | $ 253.93 | $ 187.53 | $ 165.71 |
Granted, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 329.78 | 253.40 | 187.53 |
Vested, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 255.06 | 193.35 | 166.71 |
Forfeited, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | 0 | 253.93 | 187.53 |
Nonvested, end of year, Weighted-Average Grant Date Fair Value, RSUs (in dollars per share) | $ 330.08 | $ 253.93 | $ 187.53 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |||
Number of shares repurchased | 347 | 690 | 330 |
Average price paid per share | $ 388.35 | $ 233.48 | $ 179.41 |
Total cost | $ 134,679 | $ 161,029 | $ 59,116 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) shares in Millions | Dec. 31, 2021shares |
Class of Stock Disclosures [Abstract] | |
Stock repurchase program, remaining number of shares authorized to be repurchased | 2.5 |
Royalty Agreements (Details)
Royalty Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost of goods and services sold | $ 257,984 | $ 225,264 | $ 166,273 |
Royalty | |||
Cost of goods and services sold | $ 36,900 | $ 29,600 | $ 22,400 |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 1,906,715 | $ 1,681,297 | $ 1,515,892 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 867,125 | 776,716 | 637,916 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 193,096 | 183,117 | 162,154 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 158,541 | 160,771 | 158,809 |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 105,853 | 74,953 | 90,082 |
Other EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 359,074 | 307,933 | 279,744 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 223,026 | $ 177,807 | $ 187,187 |
Geographic Information - Proper
Geographic Information - Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 87,914 | $ 96,503 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 62,880 | 65,633 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 6,144 | 7,408 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 4,434 | 5,277 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 4,217 | 5,749 |
Other EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 4,998 | 5,847 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 5,241 | $ 6,589 |
Unconditional Purchase Obliga_3
Unconditional Purchase Obligations (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |
2022 | $ 54,788 |
2023 | 12,858 |
2024 | 4,671 |
2025 | 1,759 |
2026 | 1,119 |
Total | $ 75,195 |
Unconditional Purchase Obliga_4
Unconditional Purchase Obligations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |||
Unconditional purchase obligations, beginning of year | $ 44.9 | $ 37.2 | $ 24.2 |
Contingencies and Commitments -
Contingencies and Commitments - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) |
India Service Tax Audit | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 7.5 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts rollforward - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 14,000 | $ 8,700 | $ 8,000 |
Additions: charges to costs and expenses | 1,006 | 6,438 | 2,928 |
Deductions: write-offs | 406 | 1,138 | 2,228 |
Balance at end of year | $ 14,600 | $ 14,000 | $ 8,700 |