Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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 | $ 16,309,000,000 | ||
Entity Common Stock, Shares Outstanding | 87,085,890 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
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, $0.01 par value per share | ||
Trading Symbol | ANSS | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Pittsburgh, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 614,391 | $ 667,667 |
Short-term investments | 183 | 361 |
Accounts receivable, less allowance for doubtful accounts of $18,300 and $14,600, respectively | 760,287 | 645,891 |
Other receivables and current assets | 289,261 | 324,655 |
Total current assets | 1,664,122 | 1,638,574 |
Long-term assets: | ||
Property and equipment, net | 80,838 | 87,914 |
Operating lease right-of-use assets | 129,140 | 120,881 |
Goodwill | 3,658,267 | 3,409,271 |
Other intangible assets, net | 809,183 | 763,119 |
Other long-term assets | 261,880 | 279,676 |
Deferred income taxes | 84,515 | 24,879 |
Total long-term assets | 5,023,823 | 4,685,740 |
Total assets | 6,687,945 | 6,324,314 |
Current liabilities: | ||
Accounts payable | 14,021 | 10,863 |
Accrued bonuses and commissions | 160,908 | 163,182 |
Accrued income taxes | 7,698 | 8,410 |
Other accrued expenses and liabilities | 198,220 | 204,509 |
Deferred revenue | 413,989 | 391,528 |
Total current liabilities | 794,836 | 778,492 |
Long-term liabilities: | ||
Deferred income taxes | 58,126 | 105,548 |
Long-term operating lease liabilities | 112,802 | 104,378 |
Long-term debt | 753,574 | 753,576 |
Other long-term liabilities | 102,756 | 98,272 |
Total long-term liabilities | 1,027,258 | 1,061,774 |
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, shares issued | 95,267,307 | 95,267,307 |
Common stock, $0.01 par value; 300,000,000 shares authorized; 95,267,307 shares issued | $ 953 | $ 953 |
Additional paid-in capital | 1,540,317 | 1,465,694 |
Retained earnings | 4,782,930 | 4,259,220 |
Treasury stock, at cost: 8,317,389 and 8,188,331 shares, respectively | (1,335,627) | (1,185,707) |
Accumulated other comprehensive loss | (122,722) | (56,112) |
Total stockholders' equity | 4,865,851 | 4,484,048 |
Total liabilities and stockholders' equity | $ 6,687,945 | $ 6,324,314 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 18,300 | $ 14,600 |
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 | 95,267,307 |
Treasury stock, shares | 8,317,389 | 8,188,331 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Total revenue | $ 2,065,553 | $ 1,906,715 | $ 1,681,297 |
Cost of sales: | |||
Amortization | 69,372 | 60,762 | 40,642 |
Total cost of sales | 250,641 | 257,984 | 225,264 |
Gross profit | 1,814,912 | 1,648,731 | 1,456,033 |
Operating expenses: | |||
Selling, general and administrative | 772,871 | 715,377 | 587,707 |
Research and development | 433,661 | 404,870 | 355,371 |
Amortization | 15,722 | 15,213 | 16,599 |
Total operating expenses | 1,222,254 | 1,135,460 | 959,677 |
Operating income | 592,658 | 513,271 | 496,356 |
Interest income | 5,717 | 2,078 | 5,073 |
Interest expense | (22,726) | (12,405) | (10,988) |
Other (expense) income, net | (334) | 12,410 | 3,484 |
Income before income tax provision | 575,315 | 515,354 | 493,925 |
Income tax provision | 51,605 | 60,727 | 60,038 |
Net income | $ 523,710 | $ 454,627 | $ 433,887 |
Earnings per share – basic: | |||
Earnings per share | $ 6.02 | $ 5.22 | $ 5.05 |
Weighted average shares | 87,051 | 87,100 | 85,840 |
Earnings per share – diluted: | |||
Earnings per share | $ 5.99 | $ 5.16 | $ 4.97 |
Weighted average shares | 87,490 | 88,102 | 87,288 |
Software licenses | |||
Revenue: | |||
Total revenue | $ 988,978 | $ 945,797 | $ 780,850 |
Cost of sales: | |||
Cost of sales | 33,081 | 38,156 | 30,618 |
Maintenance and service | |||
Revenue: | |||
Total revenue | 1,076,575 | 960,918 | 900,447 |
Cost of sales: | |||
Cost of sales | $ 148,188 | $ 159,066 | $ 154,004 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 523,710 | $ 454,627 | $ 433,887 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (66,610) | (38,337) | 47,606 |
Comprehensive income | $ 457,100 | $ 416,290 | $ 481,493 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 523,710 | $ 454,627 | $ 433,887 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 114,563 | 106,867 | 85,275 |
Operating lease right-of-use assets expense | 22,721 | 22,193 | 20,971 |
Deferred income tax benefit | (130,716) | (34,490) | (30,932) |
Provision for bad debts | 6,222 | 1,006 | 6,438 |
Stock-based compensation expense | 168,128 | 166,338 | 145,615 |
Gain on equity investment | 0 | (15,139) | 0 |
Other | 4,680 | 2,708 | 2,180 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (114,986) | (149,017) | (160,319) |
Other receivables and current assets | 30,259 | (64,316) | (2,312) |
Other long-term assets | (3,613) | (3,217) | (14,818) |
Accounts payable, accrued expenses and current liabilities | (8,250) | 53,846 | 21,362 |
Accrued income taxes | 99 | (18,429) | 19,713 |
Deferred revenue | 33,003 | 26,547 | 5,448 |
Other long-term liabilities | (14,817) | (42) | 14,802 |
Net cash provided by operating activities | 631,003 | 549,482 | 547,310 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (386,264) | (510,805) | (572,328) |
Capital expenditures | (24,370) | (23,018) | (35,370) |
Other investing activities | (734) | (2,990) | (6,555) |
Net cash used in investing activities | (411,368) | (536,813) | (614,253) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 0 | 0 | 375,000 |
Principal payments on long-term debt | 0 | (45,000) | (75,000) |
Purchase of treasury stock | (205,571) | (134,679) | (161,029) |
Restricted stock withholding taxes paid in lieu of issued shares | (64,242) | (97,037) | (71,019) |
Proceeds from shares issued for stock-based compensation | 25,595 | 31,377 | 29,560 |
Other financing activities | (1,290) | (513) | (915) |
Net cash (used in) provided by financing activities | (245,508) | (245,852) | 96,597 |
Effect of exchange rate fluctuations on cash and cash equivalents | (27,403) | (11,822) | 10,924 |
Net (decrease) increase in cash and cash equivalents | (53,276) | (245,005) | 40,578 |
Cash and cash equivalents, beginning of period | 667,667 | 912,672 | 872,094 |
Cash and cash equivalents, end of period | 614,391 | 667,667 | 912,672 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 115,339 | 130,426 | 54,174 |
Interest paid | 20,844 | 11,146 | 11,941 |
Fair value of unpaid consideration and common stock issued in connection with acquisitions | $ 5,391 | $ 0 | $ 232,690 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Livermore Software Technology, LLC | Analytical Graphics Inc. | Common Stock | Common Stock Livermore Software Technology, LLC | Common Stock Analytical Graphics Inc. | Additional Paid-In Capital | Additional Paid-In Capital Livermore Software Technology, LLC | Additional Paid-In Capital Analytical Graphics Inc. | Retained Earnings | Treasury Stock | Treasury Stock Livermore Software Technology, LLC | Treasury Stock Analytical Graphics Inc. | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance at Dec. 31, 2019 | $ 3,453,379 | $ 946 | $ 1,188,939 | $ 3,370,706 | $ (1,041,831) | $ (65,381) | ||||||||
Beginning balance, shares at Dec. 31, 2019 | 94,628 | 8,893 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
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 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Acquisition activity | $ 811 | $ 511 | $ 300 | |||||||||||
Acquisition activity, shares | ||||||||||||||
Acquisition activity, treasury shares | (3) | |||||||||||||
Treasury shares acquired | $ (205,571) | $ (205,571) | ||||||||||||
Treasury shares acquired, shares | 725 | 725 | ||||||||||||
Stock-based compensation activity | $ 129,463 | 74,112 | $ 55,351 | |||||||||||
Stock-based compensation activity, shares | (593) | |||||||||||||
Other comprehensive (loss)/income | (66,610) | (66,610) | ||||||||||||
Net income for the year | 523,710 | 523,710 | ||||||||||||
Ending balance at Dec. 31, 2022 | $ 4,865,851 | $ 953 | $ 1,540,317 | $ 4,782,930 | $ (1,335,627) | $ (122,722) | ||||||||
Ending balance, shares at Dec. 31, 2022 | 95,267 | 8,317 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | |
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 Business combinations: In October 2021, the Financial Accounting Standards Board 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. We adopted the standard effective January 1, 2022. Under the prior guidance, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. The standard does not impact acquired contract assets or liabilities from business combinations that occurred prior to the effective date of adoption, and the impact in current and future periods will depend on the contract assets and contract liabilities acquired in business combinations after the effective date of adoption. Accounting Guidance Issued and Not Yet Adopted It is not expected that the future adoption of any recently issued accounting pronouncements will have a material impact on our financial position, results of operations or cash flows. 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 subscription lease licenses. Subscription 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 subscription 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 subscription 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, consulting 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, 2022 December 31, 2021 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 503,733 82.0 $ 580,047 86.9 Money market funds 110,658 18.0 87,620 13.1 Total $ 614,391 $ 667,667 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 acquired software and technology, customer lists and trade names. 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 $85.1 million, $76.0 million and $57.2 million for the years ended December 31, 2022, 2021 and 2020, 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 2022, 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, 2022. Given the adverse economic and market conditions during the year, we considered a variety of qualitative factors to determine if an additional quantitative impairment test was required subsequent to our annual impairment test. Based on a variety of factors, including the excess of the fair value over the carrying amounts in the most recent impairment test, we determined it was not more likely than not that an impairment existed during the year. No other events or circumstances changed during the year ended December 31, 2022 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 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) 2022 2021 2020 Revenue from channel partners 24 % 24 % 22 % No single customer or channel partner accounted for more than 5% of our revenue in 2022 , 2021 or 2020. 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) 2022 2021 Cash and cash equivalents held domestically $ 326,784 $ 365,390 Cash and cash equivalents held by foreign subsidiaries 287,607 302,277 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 597,471 652,830 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 238,058 201,524 Allowance for Doubtful Accounts ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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, 2022, 2021 and 2020 were as follows: (in thousands) 2022 2021 2020 Beginning balance – January 1 $ 14,600 $ 14,000 $ 8,700 Additions: Charges to costs and expenses 6,222 1,006 6,438 Deductions: Write-offs (2,522) (406) (1,138) Ending balance – December 31 $ 18,300 $ 14,600 $ 14,000 We recorded provisions for bad debts of $6.2 million, $1.0 million and $6.4 million for the years ended December 31, 2022, 2021 and 2020, 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 converted to the functional currency in the period in which they occur. Assets and liabilities denominated in a currency other than our functional currency or our subsidiaries' functional currencies are translated at the effective exchange rate on the balance sheet date. Gains and losses resulting from foreign exchange transactions are included in other (expense) income, net. We recorded net foreign exchange gains of $1.6 million for the year ended December 31, 2022 and net foreign exchange losses of $1.8 million and $0.2 million for the years ended December 31, 2021 and 2020, 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) 2022 2021 2020 Net income $ 523,710 $ 454,627 $ 433,887 Weighted average shares outstanding – basic 87,051 87,100 85,840 Dilutive effect of stock plans 439 1,002 1,448 Weighted average shares outstanding – diluted 87,490 88,102 87,288 Basic earnings per share $ 6.02 $ 5.22 $ 5.05 Diluted earnings per share $ 5.99 $ 5.16 $ 4.97 Anti-dilutive shares 300 23 23 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, 2022 | |
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) 2022 2021 2020 Revenue: Subscription lease licenses $ 687,665 $ 617,643 $ 500,105 Perpetual licenses 301,313 328,154 280,745 Software licenses 988,978 945,797 780,850 Maintenance 1,004,245 896,037 840,597 Service 72,330 64,881 59,850 Maintenance and service 1,076,575 960,918 900,447 Total revenue $ 2,065,553 $ 1,906,715 $ 1,681,297 Direct revenue, as a percentage of total revenue 76.1 % 76.3 % 77.8 % Indirect revenue, as a percentage of total revenue 23.9 % 23.7 % 22.2 % 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, 2022 and 2021 were as follows: (in thousands) 2022 2021 Beginning balance – January 1 $ 412,781 $ 388,810 Acquired deferred revenue 5,818 3,831 Deferral of revenue 2,099,550 1,937,974 Recognition of deferred revenue (2,065,553) (1,906,715) Currency translation (16,838) (11,119) Ending balance – December 31 $ 435,758 $ 412,781 Total revenue allocated to remaining performance obligations as of December 31, 2022 will be recognized as revenue as follows: (in thousands) Next 12 months $ 846,312 Months 13-24 356,075 Months 25-36 170,977 Thereafter 43,482 Total revenue allocated to remaining performance obligations $ 1,416,846 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 deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period. Revenue recognized during the years ended December 31, 2022 and 2021 included amounts in deferred revenue and backlog at the beginning of the period of $764.9 million, of which $391.5 million was in deferred revenue, and $606.8 million, of which $372.1 million was in deferred revenue, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions During the year ended December 31, 2022, we completed several strategic acquisitions to expand our solution offerings and enhance our customers' experience. The effects of the acquisitions were not material to our consolidated results of operations individually or in the aggregate. The combined purchase price of the acquisitions completed during the year ended December 31, 2022 was approximately $401.8 million, or $391.6 million net of cash acquired. During the year ended December 31, 2022, we incurred acquisition-related expenses of $10.3 million. Acquisition-related expenses are recognized as selling, general and administrative and research and development expenses on the consolidated statements of income. The assets acquired and liabilities assumed in connection with 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 and the fair values of identified assets acquired and liabilities assumed for the combined 2022 acquisitions at each respective date of acquisition: Fair Value of Consideration: (in thousands) Cash $ 396,455 Consideration not yet paid 5,391 Total consideration $ 401,846 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 10,242 Accounts receivable and other tangible assets 4,821 Developed software and core technologies (9 year weighted-average life) 127,830 Customer lists (14 year weighted-average life) 7,926 Trade names (10 year weighted-average life) 5,304 Accounts payable and other liabilities (6,276) Deferred revenue (5,818) Net deferred tax liabilities (28,060) Total identifiable net assets $ 115,969 Goodwill $ 285,877 The goodwill, which is not tax-deductible, is attributed to intangible assets that do not qualify for separate recognition, including the assembled workforces of the acquired businesses and the synergies expected to arise as a result of the acquisitions. The fair values of the assets acquired and liabilities assumed are based on preliminary calculations. The estimates and assumptions for these items are subject to change as additional information about what was known and knowable at each respective acquisition date is obtained during the measurement period (up to one year from the acquisition date). 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 attrition rate. The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired in 2022 are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 9 years Multi-period excess earnings Discount rate: 9.5% - 18.0% Trade names 10 years Relief-from-royalty Royalty rate: 1.0% - 2.0% Discount rate: 10.0% - 18.0% Customer lists 14 years Multi-period excess earnings Attrition rate: 5.0% - 30.0% Discount rate: 9.5% - 15.0% 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 2022. 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, or $106.4 million net of cash acquired. 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 $ 411,501 $ 110,739 $ 522,240 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 6,831 2,978 $ 9,809 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 (4,915) (2,942) $ (7,857) Deferred revenue (3,085) (746) $ (3,831) Net deferred tax liabilities (24,171) (6,056) $ (30,227) Total identifiable net assets $ 100,013 $ 33,054 $ 133,067 Goodwill $ 311,488 $ 77,685 $ 389,173 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 businesses 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 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. |
Other Receivables and Current A
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 Receivables related to unrecognized revenue $ 209,139 $ 200,888 Income taxes receivable, including overpayments and refunds 28,963 71,332 Prepaid expenses and other current assets 51,159 52,435 Total other receivables and current assets $ 289,261 $ 324,655 Consumption, sales and VAT tax liabilities 41,812 $ 52,630 Accrued expenses and other current liabilities 156,408 151,879 Total other accrued expenses and liabilities $ 198,220 $ 204,509 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, 2022 | |
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 2022 2021 Equipment 1-15 years $ 127,672 $ 127,093 Computer software 1-5 years 27,030 35,134 Buildings and improvements 2-40 years 38,991 38,391 Leasehold improvements 1-17 years 27,560 25,948 Furniture 1-12 years 15,196 14,773 Land 2,696 2,696 Property and equipment, gross 239,145 244,035 Less: Accumulated depreciation (158,307) (156,121) Property and equipment, net $ 80,838 $ 87,914 Depreciation expense related to property and equipment was $29.5 million, $30.9 million and $28.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsGoodwill represents the excess of the fair value of consideration 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, 2022 December 31, 2021 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 1,106,789 $ (483,033) $ 985,685 $ (422,797) Customer lists 205,484 (71,618) 203,072 (57,175) Trade names 186,424 (135,220) 182,554 (128,577) Total $ 1,498,697 $ (689,871) $ 1,371,311 $ (608,549) 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. As of December 31, 2022, estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) 2023 $ 94,544 2024 99,348 2025 100,509 2026 102,172 2027 104,205 Thereafter 308,048 Total intangible assets subject to amortization, net 808,826 Indefinite-lived trade name 357 Other intangible assets, net $ 809,183 The changes in goodwill during the years ended December 31, 2022 and 2021 were as follows: (in thousands) 2022 2021 Beginning balance - January 1 $ 3,409,271 $ 3,038,306 Acquisitions and adjustments (1) 284,503 391,534 Currency translation (35,507) (20,569) Ending balance - December 31 $ 3,658,267 $ 3,409,271 (1) In addition to goodwill from acquisitions completed within the period, 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 2022, 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, 2022. Given the adverse economic and market conditions during the year, we considered a variety of qualitative factors to determine if an additional quantitative impairment test was required subsequent to our annual impairment test. Based on a variety of factors, including the excess of the fair value over the carrying amounts in the most recent impairment test, we determined it was not more likely than not that an impairment existed during the year. No other events or circumstances changed during the year ended December 31, 2022 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, 2022 | |
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 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 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, 2022 Quoted Prices in Significant Other Significant Assets Cash equivalents $ 110,658 $ 110,658 $ — $ — Short-term investments $ 183 $ — $ 183 $ — Deferred compensation plan investments $ 1,618 $ 1,618 $ — $ — Equity securities $ 892 $ 892 $ — $ — 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 $ — $ — 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, 2022 | |
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, 2022, 2021 and 2020 are as follows: (in thousands) 2022 2021 2020 Lease liability cost $ 27,543 $ 28,357 $ 24,818 Variable lease cost not included in the lease liability (1) 4,436 4,085 5,067 Total lease cost $ 31,979 $ 32,442 $ 29,885 (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, 2022, 2021 and 2020 is as follows: (in thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (26,767) $ (28,474) $ (22,470) Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,735 $ 13,586 $ 48,248 As of December 31, 2022 2021 Weighted-average remaining lease term of operating leases 6.9 years 7.2 years Weighted-average discount rate of operating leases 3.1 % 3.0 % The maturity schedule of the operating lease liabilities as of December 31, 2022 is as follows: (in thousands) 2023 $ 26,559 2024 24,092 2025 20,434 2026 18,655 2027 18,071 Thereafter 43,427 Total future lease payments 151,238 Less: Present value adjustment (15,633) Present value of future lease payments (1) $ 135,605 (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, 2022. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt On June 30, 2022, we entered into a credit agreement (2022 Credit Agreement) with PNC Bank, National Association, as administrative agent, swing line lender, and an L/C issuer, the lenders party thereto, and the other L/C issuers party thereto. The 2022 Credit Agreement refinanced our previous credit agreements in their entirety. Terms used in this description of the 2022 Credit Agreement with initial capital letters that are not otherwise defined herein are as defined in the 2022 Credit Agreement. The 2022 Credit Agreement provides for a $755.0 million unsecured term loan facility and a $500.0 million unsecured revolving loan facility, which includes a $50.0 million sublimit for the issuance of letters of credit. The revolving loan facility is available for working capital and general corporate purposes. Each of the term loan facility and the revolving loan facility matures on June 30, 2027. The term loan facility was advanced by the lenders thereunder to refinance and replace our (i) Credit Agreement, dated as of February 22, 2019, as amended, among us, as borrower, Bank of America, N.A., as administrative agent, swing line lender and an L/C issuer, the lenders party thereto, and the other L/C issuers party thereto and (ii) Credit Agreement, dated as of November 9, 2020, among us, as borrower, Bank of America, N.A., as administrative agent, and the lenders party thereto (together, the "Prior Credit Agreements"). Borrowings under the term loan and revolving loan facilities accrue interest at a rate that is based on the Term SOFR plus an applicable margin or at the base rate plus an applicable margin, at our election. The base rate is the highest of (i) the Overnight Bank Funding Rate, plus 0.500%, (ii) the PNC Bank, National Association prime rate and (iii) Daily Simple SOFR plus an adjustment for SOFR plus 1.00%. The applicable margin for the borrowings is a percentage per annum based on the lower of (1) a pricing level determined by our then-current consolidated net leverage ratio and (2) a pricing level determined by our public debt rating (if available). T he 2022 Credit Agreement also provides for the option to add certain foreign subsidiaries as borrowers and to borrow in Euros, Sterling, Yen and Swiss Francs under the revolving loan facility, up to a sublimit of $150.0 million. Borrowings under the revolving loan facility denominated in these currencies will accrue interest at a rate that is based on (a) for Euros, €STR, (b) for Sterling, SONIA, (c) for Yen, TONAR and (d) for Swiss Francs, SARON, plus an applicable margin calculated as described above. Under the 2022 Credit Agreement and Prior Credit Agreements, the weighted average interest rates in effect for the years ended December 31, 2022 and 2021 were 2.72% and 1.37%, respectively. The rate in effect as of December 31, 2022 and for the first quarter of 2023 under the 2022 Credit Agreement is 5.56%. The 2022 Credit Agreement contains customary representations and warranties, affirmative and negative covenants and events of default. The 2022 Credit Agreement also contains a financial covenant requiring us and our subsidiaries to maintain a consolidated net leverage ratio not in excess of 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 net 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, 2022, we had $755.0 million of borrowings outstanding under the term loan, with a carrying value of $753.6 million, which is net of $1.4 million of unamortized debt discounts and issuance costs. The total amount was included in long-term debt. As of December 31, 2022, no borrowings were outstanding under the revolving loan facility. As of December 31, 2021, we had $755.0 million of borrowings outstanding under term loans under the Prior Credit Agreements, with a carrying value of $753.6 million, which is net of $1.4 million of unamortized debt discounts and issuance costs. The total amount was included in long-term debt. As of December 31, 2021, no borrowings were outstanding under the revolving loan facility under the Prior Credit Agreements . We were in compliance with all covenants under the 2022 Credit Agreement and the Prior Credit Agreements as of December 31, 2022 and December 31, 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income tax provision included the following components: Year Ended December 31, (in thousands) 2022 2021 2020 Domestic $ 504,797 $ 460,395 $ 465,382 Foreign 70,518 54,959 28,543 Total $ 575,315 $ 515,354 $ 493,925 The provision for income taxes was composed of the following: Year Ended December 31, (in thousands) 2022 2021 2020 Current: Federal $ 103,007 $ 44,805 $ 26,855 State 11,286 6,626 12,738 Foreign 68,028 43,786 51,377 Deferred: Federal (94,398) (32,449) (12,203) State (9,647) (1,691) (2,119) Foreign (26,671) (350) (16,610) Total $ 51,605 $ 60,727 $ 60,038 The reconciliation of the U.S. federal statutory tax rate to the consolidated effective tax rate was as follows: Year Ended December 31, 2022 2021 2020 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Nondeductible expenses 2.3 2.8 0.7 State income taxes, net of federal benefit 0.9 0.6 1.6 Foreign rate differential — (0.1) 0.4 Stock-based compensation (1.5) (5.4) (3.6) U.S. federal tax (benefit) expense on foreign earnings (2.4) 0.4 (1.7) Benefit from tax planning and entity structuring activities (2.5) (0.8) (1.5) Research and development credits (3.2) (3.1) (3.2) Foreign-derived intangible income deduction (5.7) (4.0) (2.8) Other 0.1 0.4 1.3 9.0 % 11.8 % 12.2 % The components of deferred tax assets and liabilities are as follows: December 31, (in thousands) 2022 2021 Deferred tax assets: Research and experimentation capitalization $ 85,677 $ — Uncertain tax positions 41,569 35,574 Net operating loss carryforwards 39,034 47,235 Operating lease liabilities 31,726 30,634 Debt obligation basis difference 28,758 — Stock-based compensation 27,548 25,578 Employee benefits 13,343 12,902 Research and development credits 5,390 5,393 Allowance for doubtful accounts 4,376 3,522 Other 2,638 1,926 Valuation allowance (17,336) (14,936) Total deferred tax assets 262,723 147,828 Deferred tax liabilities: Other intangible assets (192,018) (173,895) Operating lease right-of-use assets (30,308) (29,296) Deferred revenue (8,979) (19,521) Property and equipment (5,029) (5,785) Total deferred tax liabilities (236,334) (228,497) Net deferred tax assets (liabilities) $ 26,389 $ (80,669) The net increase in the valuation allowance was primarily due to $3.2 million net increases in unrealizable tax assets, partially offset by $0.8 million of currency fluctuations on balances relating to foreign jurisdictions. 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, 2022, we had federal net operating loss carryforwards of $15.9 million, which are subject to limitations of their utilization. Losses totaling $15.1 million are not currently subject to expiration dates, while the remaining $0.8 million of losses expire between 2028 - 2037. Deferred tax assets of $1.9 million have been recorded for state operating loss carryforwards. These losses expire between 2031 - 2043, and are subject to limitations on their utilization. We had total foreign net operating loss carryforwards of $144.4 million, of which $104.6 million are not currently subject to expiration dates. The remainder, $39.8 million, expires between 2025 - 2038. We had tax credit carryforwards of $7.1 million, of which $0.5 million are not currently subject to expiration dates and $6.6 million expire in various years between 2023 - 2042. Of these tax credit carryforwards, $1.0 million are subject to limitations on their utilization. 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 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. Unrecognized provisions for taxes on indefinitely reinvested undistributed earnings of foreign subsidiaries would not be significant. The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ended December 31, (in thousands) 2022 2021 2020 Unrecognized tax benefit as of January 1 $ 39,641 $ 24,075 $ 49,085 Gross changes—acquisitions — — (24,963) Gross increases—tax positions in prior period 403 10,183 1,572 Gross decreases—tax positions in prior period (2,780) (2,281) — Gross increases—tax positions in current period 13,905 13,223 1,281 Reductions due to a lapse of the applicable statute of limitations (3,743) (3,226) (3,502) Changes due to currency fluctuation (1,654) (912) 994 Settlements — (1,421) (392) Unrecognized tax benefit as of December 31 $ 45,772 $ 39,641 $ 24,075 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, 2022 were to be recognized, a benefit of $15.1 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 $0.7 million, $1.8 million and $0.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. We recorded interest expense of $0.1 million for the year ended December 31, 2022, interest income of $0.2 million for the year ended December 31, 2021 and interest expense of $0.3 million for the year ended December 31, 2020. As of December 31, 2022, we accrued a liability for penalties of $7.9 million and interest of $3.0 million. As of December 31, 2021, we accrued a liability for penalties of $7.2 million and interest of $5.2 million. |
Pension And Profit-Sharing Plan
Pension And Profit-Sharing Plans | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021, the total unfunded portions of the benefit obligations were $9.4 million and $9.2 million, respectively. Expenses related to our retirement programs were $21.9 million in 2022, $20.0 million in 2021 and $18.7 million in 2020. |
Non-Compete and Employment Agre
Non-Compete and Employment Agreements | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | |
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, 2022, 2021 and 2020 is as follows: Year Ended December 31, (in thousands, except per share amounts) 2022 2021 2020 Cost of sales: Maintenance and service 10,073 12,390 13,626 Operating expenses: Selling, general and administrative 93,117 91,772 73,491 Research and development 64,938 62,176 58,498 Stock-based compensation expense before taxes 168,128 166,338 145,615 Related income tax benefits (50,209) (75,241) (56,485) Stock-based compensation expense, net of taxes $ 117,919 $ 91,097 $ 89,130 Net impact on earnings per share: Basic earnings per share $ (1.35) $ (1.05) $ (1.04) Diluted earnings per share $ (1.35) $ (1.03) $ (1.02) As of December 31, 2022, total unrecognized estimated compensation expense related to awards granted prior to that date was $241.6 million, which is expected to be recognized over a weighted average period of 1.5 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, 2022, there is no unrecognized estimated compensation cost related to unvested stock options. Information regarding stock option transactions is summarized below: Year Ended December 31, 2022 2021 2020 (options in thousands) Options Weighted- Options Weighted- Options Weighted- Outstanding, beginning of year 375 $ 83.67 648 $ 74.26 984 $ 67.49 Granted — $ — — $ — — $ — Exercised (148) $ 67.56 (270) $ 61.42 (336) $ 54.43 Forfeited (1) $ 67.44 (3) $ 55.46 — $ — Outstanding, end of year 226 $ 94.24 375 $ 83.67 648 $ 74.26 Vested and Exercisable, end of year 226 $ 94.24 375 $ 83.67 648 $ 74.26 Nonvested — $ — — $ — — $ — 2022 2021 2020 Weighted Average Remaining Contractual Term (in years) Outstanding 3.53 3.09 2.93 Vested and Exercisable 3.53 3.09 2.93 Nonvested 0.00 0.00 0.00 Aggregate Intrinsic Value (in thousands) Exercised $ 30,358 $ 82,790 $ 78,269 Outstanding $ 33,361 $ 118,995 $ 187,679 Vested and Exercisable $ 33,361 $ 118,995 $ 187,679 Nonvested $ — $ — $ — Compensation Expense - Stock Options (in thousands) $ — $ — $ 1,030 Information regarding stock options outstanding as of December 31, 2022 is summarized below: (options in thousands) Options Outstanding & Exercisable Range of Exercise Prices Options Weighted- Weighted- $12.26 - $86.01 9 1.02 $ 80.88 $86.57 8 2.67 $ 86.57 $94.15 1 2.58 $ 94.15 $95.09 208 3.67 $ 95.09 There were no unvested stock options as of December 31, 2022. 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 2022 2021 2020 Risk-free interest rate 1.8% 0.3% 0.7% Expected dividend yield —% —% —% Expected volatility—Ansys stock price 37% 36% 25% Expected volatility—Nasdaq Composite Index 26% 26% 18% Expected term 2.8 years 2.8 years 2.8 years Correlation factor 0.84 0.84 0.77 Weighted average fair value per share $290.65 $238.87 $245.08 Total compensation expense for employee RSU awards recorded for the years ended December 31, 2022, 2021 and 2020 was $161.7 million, $160.2 million and $138.3 million, respectively. Information regarding all employee RSU transactions is summarized below: Year Ended December 31, 2022 2021 2020 (RSUs in thousands) RSUs Weighted- RSUs Weighted- RSUs Weighted- Nonvested, beginning of year 1,068 $ 277.71 1,323 $ 201.98 1,618 $ 165.26 Granted (1) 851 $ 299.58 501 $ 333.50 501 $ 256.47 Performance adjustment - awards with market condition (2) (8) $ 276.73 17 $ 238.99 18 $ 191.76 Performance adjustment - awards with performance condition (2) 73 $ 300.28 63 $ 376.48 (10) $ 279.08 Vested (592) $ 256.72 (793) $ 194.50 (742) $ 158.13 Forfeited (182) $ 295.13 (43) $ 263.13 (62) $ 193.28 Nonvested, end of year 1,210 $ 302.09 1,068 $ 277.71 1,323 $ 201.98 (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, 2022 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 6,998 56,824 63,822 Shares Diversified — — — Deferred Awards Outstanding, end of year 6,998 56,824 63,822 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 Information regarding RSU awards to non-employee Directors is summarized below: Year Ended December 31, 2022 2021 2020 BOD RSUs Weighted- BOD RSUs Weighted- BOD RSUs Weighted- Nonvested, beginning of year 6,428 $ 330.08 8,071 $ 253.93 9,688 $ 187.53 Granted 9,515 $ 254.23 6,576 $ 329.78 9,664 $ 253.40 Vested (6,428) $ 330.08 (8,219) $ 255.06 (10,704) $ 193.35 Forfeited — $ — — $ — (577) $ 253.93 Nonvested, end of year 9,515 $ 254.23 6,428 $ 330.08 8,071 $ 253.93 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, 2022, 2021 and 2020 was $2.3 million, $2.1 million and $2.2 million, respectively. Employee Stock Purchase Plan On May 12, 2022, our stockholders approved the ANSYS, Inc. 2022 Employee Stock Purchase Plan (2022 ESPP) and the reservation by our Board of Directors of 750,000 shares of common stock for issuance under the 2022 ESPP. On October 27, 2022 our Board of Directors approved the amendment and restatement of the 2022 ESPP. The 2022 ESPP replaced the 1996 Employee Stock Purchase Plan (1996 Plan) in its entirety. The shares issued in both January and July 2022 were under the 1996 Plan. Shares issued in 2023 and beyond will be under the 2022 ESPP. The 2022 ESPP and 1996 Plan (Purchase Plans) allow our employees and employees of our designated subsidiaries to purchase shares of our common stock at a discount to fair market value. There were 750,000 shares available for future purchases as of December 31, 2022. The Purchase Plans are administered by the Compensation Committee. Offerings under the Purchase Plans commence on the first business day occurring on or before each February 1 and August 1, and end on the last business day occurring on or before the following July 31 and January 31, respectively. 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 Plans. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2020 Number of shares repurchased 725 347 690 Average price paid per share $ 283.38 $ 388.35 $ 233.48 Total cost $ 205,571 $ 134,679 $ 161,029 |
Royalty Agreements
Royalty Agreements | 12 Months Ended |
Dec. 31, 2022 | |
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 $32.0 million, $36.9 million and $29.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2020 United States $ 932,587 $ 867,125 $ 776,716 Germany 198,612 158,541 160,771 Japan 186,199 193,096 183,117 South Korea 127,948 105,853 74,953 Other EMEA 349,159 359,074 307,933 Other international 271,048 223,026 177,807 Total revenue $ 2,065,553 $ 1,906,715 $ 1,681,297 Property and equipment by geographic area was as follows: December 31, (in thousands) 2022 2021 United States $ 58,258 $ 62,880 India 5,978 6,144 Germany 2,533 4,434 Other EMEA 8,510 9,215 Other international 5,559 5,241 Total property and equipment, net $ 80,838 $ 87,914 |
Unconditional Purchase Obligati
Unconditional Purchase Obligations | 12 Months Ended |
Dec. 31, 2022 | |
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 $54.8 million, $44.9 million and $37.2 million related to unconditional purchase obligations that existed as of the beginning of each year for the years ended December 31, 2022, 2021 and 2020, respectively. Future expenditures under unconditional purchase obligations in effect as of December 31, 2022 are as follows: (in thousands) 2023 $ 54,775 2024 18,832 2025 4,446 2026 3,542 2027 2,663 Total $ 84,258 |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2022 | |
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 parties' 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 consolidated 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 $6.9 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, 2022. 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 $6.9 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In January 2023, we had a $120.7 million cash outflow (net of cash acquired) associated with a strategic acquisition. The acquisition was funded with our existing cash balance. Due to the limited time since the acquisition date, the initial accounting for the business combination is incomplete. As a result, we are unable to provide the amount recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed. The preliminary allocation of purchase price will be included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2023. We do not expect the operation to be material to our financial results. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 Business combinations: In October 2021, the Financial Accounting Standards Board 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. We adopted the standard effective January 1, 2022. Under the prior guidance, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. The standard does not impact acquired contract assets or liabilities from business combinations that occurred prior to the effective date of adoption, and the impact in current and future periods will depend on the contract assets and contract liabilities acquired in business combinations after the effective date of adoption. |
Accounting Guidance Issued And Not Yet Adopted | Accounting Guidance Issued and Not Yet Adopted It is not expected that the future adoption of any recently issued accounting pronouncements will have a material impact on our financial position, results of operations or cash flows. |
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 subscription lease licenses. Subscription 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 subscription 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 subscription 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, consulting 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, 2022 December 31, 2021 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 503,733 82.0 $ 580,047 86.9 Money market funds 110,658 18.0 87,620 13.1 Total $ 614,391 $ 667,667 |
Property And Equipment | Property and Equipment Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of assets, which range from one year to forty years. Repairs and maintenance are charged to expense as incurred. Gains or losses from the sale or retirement of property and equipment are included in operating income. |
Research And Development | Research and Development Research and development costs are expensed as incurred. Internally developed software costs required to be capitalized as defined by the accounting guidance are not material to our consolidated financial statements. |
Business Combinations | Business Combinations When we consummate an acquisition, the assets acquired and the liabilities assumed are recognized separately from goodwill at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of the fair value of consideration transferred over the acquisition date fair value of the net identifiable assets acquired. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as we obtain new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Upon the earlier of the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, any subsequent adjustments are recorded in the consolidated statements of income. |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the fair value of consideration transferred over the fair value of net identifiable assets acquired. Other intangible assets consist of acquired software and technology, customer lists and trade names. 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 $85.1 million, $76.0 million and $57.2 million for the years ended December 31, 2022, 2021 and 2020, 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 2022, 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, 2022. Given the adverse economic and market conditions during the year, we considered a variety of qualitative factors to determine if an additional quantitative impairment test was required subsequent to our annual impairment test. Based on a variety of factors, including the excess of the fair value over the carrying amounts in the most recent impairment test, we determined it was not more likely than not that an impairment existed during the year. No other events or circumstances changed during the year ended December 31, 2022 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 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) 2022 2021 2020 Revenue from channel partners 24 % 24 % 22 % No single customer or channel partner accounted for more than 5% of our revenue in 2022 , 2021 or 2020. 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) 2022 2021 Cash and cash equivalents held domestically $ 326,784 $ 365,390 Cash and cash equivalents held by foreign subsidiaries 287,607 302,277 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 597,471 652,830 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 238,058 201,524 |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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, 2022, 2021 and 2020 were as follows: (in thousands) 2022 2021 2020 Beginning balance – January 1 $ 14,600 $ 14,000 $ 8,700 Additions: Charges to costs and expenses 6,222 1,006 6,438 Deductions: Write-offs (2,522) (406) (1,138) Ending balance – December 31 $ 18,300 $ 14,600 $ 14,000 We recorded provisions for bad debts of $6.2 million, $1.0 million and $6.4 million for the years ended December 31, 2022, 2021 and 2020, 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 converted to the functional currency in the period in which they occur. Assets and liabilities denominated in a currency other than our functional currency or our subsidiaries' functional currencies are translated at the effective exchange rate on the balance sheet date. Gains and losses resulting from foreign exchange transactions are included in other (expense) income, net. We recorded net foreign exchange gains of $1.6 million for the year ended December 31, 2022 and net foreign exchange losses of $1.8 million and $0.2 million for the years ended December 31, 2021 and 2020, 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) 2022 2021 2020 Net income $ 523,710 $ 454,627 $ 433,887 Weighted average shares outstanding – basic 87,051 87,100 85,840 Dilutive effect of stock plans 439 1,002 1,448 Weighted average shares outstanding – diluted 87,490 88,102 87,288 Basic earnings per share $ 6.02 $ 5.22 $ 5.05 Diluted earnings per share $ 5.99 $ 5.16 $ 4.97 Anti-dilutive shares 300 23 23 |
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, 2022 | |
Summary Of Cash And Cash Equivalents | Our cash and cash equivalents balances comprise the following: December 31, 2022 December 31, 2021 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 503,733 82.0 $ 580,047 86.9 Money market funds 110,658 18.0 87,620 13.1 Total $ 614,391 $ 667,667 |
Allowance for Doubtful Accounts Rollforward | The changes in the allowance for doubtful accounts during the years ended December 31, 2022, 2021 and 2020 were as follows: (in thousands) 2022 2021 2020 Beginning balance – January 1 $ 14,600 $ 14,000 $ 8,700 Additions: Charges to costs and expenses 6,222 1,006 6,438 Deductions: Write-offs (2,522) (406) (1,138) Ending balance – December 31 $ 18,300 $ 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) 2022 2021 2020 Net income $ 523,710 $ 454,627 $ 433,887 Weighted average shares outstanding – basic 87,051 87,100 85,840 Dilutive effect of stock plans 439 1,002 1,448 Weighted average shares outstanding – diluted 87,490 88,102 87,288 Basic earnings per share $ 6.02 $ 5.22 $ 5.05 Diluted earnings per share $ 5.99 $ 5.16 $ 4.97 Anti-dilutive shares 300 23 23 |
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) 2022 2021 2020 Revenue from channel partners 24 % 24 % 22 % |
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) 2022 2021 Cash and cash equivalents held domestically $ 326,784 $ 365,390 Cash and cash equivalents held by foreign subsidiaries 287,607 302,277 Cash and cash equivalents held in excess of deposit insurance, foreign and domestic 597,471 652,830 Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic 238,058 201,524 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue: Year Ended December 31, (in thousands) 2022 2021 2020 Revenue: Subscription lease licenses $ 687,665 $ 617,643 $ 500,105 Perpetual licenses 301,313 328,154 280,745 Software licenses 988,978 945,797 780,850 Maintenance 1,004,245 896,037 840,597 Service 72,330 64,881 59,850 Maintenance and service 1,076,575 960,918 900,447 Total revenue $ 2,065,553 $ 1,906,715 $ 1,681,297 Direct revenue, as a percentage of total revenue 76.1 % 76.3 % 77.8 % Indirect revenue, as a percentage of total revenue 23.9 % 23.7 % 22.2 % |
Changes in Deferred Revenue | The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the years ended December 31, 2022 and 2021 were as follows: (in thousands) 2022 2021 Beginning balance – January 1 $ 412,781 $ 388,810 Acquired deferred revenue 5,818 3,831 Deferral of revenue 2,099,550 1,937,974 Recognition of deferred revenue (2,065,553) (1,906,715) Currency translation (16,838) (11,119) Ending balance – December 31 $ 435,758 $ 412,781 |
Remaining Performance Obligations, Expected Timing of Satisfaction | Total revenue allocated to remaining performance obligations as of December 31, 2022 will be recognized as revenue as follows: (in thousands) Next 12 months $ 846,312 Months 13-24 356,075 Months 25-36 170,977 Thereafter 43,482 Total revenue allocated to remaining performance obligations $ 1,416,846 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Fair Value of Consideration | Fair Value of Consideration: (in thousands) Cash $ 396,455 Consideration not yet paid 5,391 Total consideration $ 401,846 Fair Value of Consideration Transferred: (in thousands) Zemax Other Acquisitions Total Cash $ 411,501 $ 110,739 $ 522,240 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 10,242 Accounts receivable and other tangible assets 4,821 Developed software and core technologies (9 year weighted-average life) 127,830 Customer lists (14 year weighted-average life) 7,926 Trade names (10 year weighted-average life) 5,304 Accounts payable and other liabilities (6,276) Deferred revenue (5,818) Net deferred tax liabilities (28,060) Total identifiable net assets $ 115,969 Goodwill $ 285,877 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 6,831 2,978 $ 9,809 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 (4,915) (2,942) $ (7,857) Deferred revenue (3,085) (746) $ (3,831) Net deferred tax liabilities (24,171) (6,056) $ (30,227) Total identifiable net assets $ 100,013 $ 33,054 $ 133,067 Goodwill $ 311,488 $ 77,685 $ 389,173 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 9 years Multi-period excess earnings Discount rate: 9.5% - 18.0% Trade names 10 years Relief-from-royalty Royalty rate: 1.0% - 2.0% Discount rate: 10.0% - 18.0% Customer lists 14 years Multi-period excess earnings Attrition rate: 5.0% - 30.0% Discount rate: 9.5% - 15.0% 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% |
Other Receivables and Current_2
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 Receivables related to unrecognized revenue $ 209,139 $ 200,888 Income taxes receivable, including overpayments and refunds 28,963 71,332 Prepaid expenses and other current assets 51,159 52,435 Total other receivables and current assets $ 289,261 $ 324,655 Consumption, sales and VAT tax liabilities 41,812 $ 52,630 Accrued expenses and other current liabilities 156,408 151,879 Total other accrued expenses and liabilities $ 198,220 $ 204,509 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property and Equipment | Property and equipment consists of the following: December 31, (in thousands) Estimated Useful Lives 2022 2021 Equipment 1-15 years $ 127,672 $ 127,093 Computer software 1-5 years 27,030 35,134 Buildings and improvements 2-40 years 38,991 38,391 Leasehold improvements 1-17 years 27,560 25,948 Furniture 1-12 years 15,196 14,773 Land 2,696 2,696 Property and equipment, gross 239,145 244,035 Less: Accumulated depreciation (158,307) (156,121) Property and equipment, net $ 80,838 $ 87,914 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets (Finite-Lived) | Intangible assets are classified as follows: December 31, 2022 December 31, 2021 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 1,106,789 $ (483,033) $ 985,685 $ (422,797) Customer lists 205,484 (71,618) 203,072 (57,175) Trade names 186,424 (135,220) 182,554 (128,577) Total $ 1,498,697 $ (689,871) $ 1,371,311 $ (608,549) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Intangible Assets (Indefinite-Lived) | Intangible assets are classified as follows: December 31, 2022 December 31, 2021 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 1,106,789 $ (483,033) $ 985,685 $ (422,797) Customer lists 205,484 (71,618) 203,072 (57,175) Trade names 186,424 (135,220) 182,554 (128,577) Total $ 1,498,697 $ (689,871) $ 1,371,311 $ (608,549) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Estimated Future Amortization Expense for Intangible Assets | As of December 31, 2022, estimated future amortization expense for the intangible assets reflected above is as follows: (in thousands) 2023 $ 94,544 2024 99,348 2025 100,509 2026 102,172 2027 104,205 Thereafter 308,048 Total intangible assets subject to amortization, net 808,826 Indefinite-lived trade name 357 Other intangible assets, net $ 809,183 |
Changes in Goodwill | The changes in goodwill during the years ended December 31, 2022 and 2021 were as follows: (in thousands) 2022 2021 Beginning balance - January 1 $ 3,409,271 $ 3,038,306 Acquisitions and adjustments (1) 284,503 391,534 Currency translation (35,507) (20,569) Ending balance - December 31 $ 3,658,267 $ 3,409,271 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Quoted Prices in Significant Other Significant Assets Cash equivalents $ 110,658 $ 110,658 $ — $ — Short-term investments $ 183 $ — $ 183 $ — Deferred compensation plan investments $ 1,618 $ 1,618 $ — $ — Equity securities $ 892 $ 892 $ — $ — 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 $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 are as follows: (in thousands) 2022 2021 2020 Lease liability cost $ 27,543 $ 28,357 $ 24,818 Variable lease cost not included in the lease liability (1) 4,436 4,085 5,067 Total lease cost $ 31,979 $ 32,442 $ 29,885 (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, 2022, 2021 and 2020 is as follows: (in thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (26,767) $ (28,474) $ (22,470) Right-of-use assets obtained in exchange for new operating lease liabilities $ 36,735 $ 13,586 $ 48,248 As of December 31, 2022 2021 Weighted-average remaining lease term of operating leases 6.9 years 7.2 years Weighted-average discount rate of operating leases 3.1 % 3.0 % |
Schedule of Maturity of Operating Lease Liabilities | The maturity schedule of the operating lease liabilities as of December 31, 2022 is as follows: (in thousands) 2023 $ 26,559 2024 24,092 2025 20,434 2026 18,655 2027 18,071 Thereafter 43,427 Total future lease payments 151,238 Less: Present value adjustment (15,633) Present value of future lease payments (1) $ 135,605 (1) Includes the current portion of operating lease liabilities of $22.8 million, which is reflected in other accrued expenses and liabilities |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2020 Domestic $ 504,797 $ 460,395 $ 465,382 Foreign 70,518 54,959 28,543 Total $ 575,315 $ 515,354 $ 493,925 |
Components Of Provision For Income Taxes | The provision for income taxes was composed of the following: Year Ended December 31, (in thousands) 2022 2021 2020 Current: Federal $ 103,007 $ 44,805 $ 26,855 State 11,286 6,626 12,738 Foreign 68,028 43,786 51,377 Deferred: Federal (94,398) (32,449) (12,203) State (9,647) (1,691) (2,119) Foreign (26,671) (350) (16,610) Total $ 51,605 $ 60,727 $ 60,038 |
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, 2022 2021 2020 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Nondeductible expenses 2.3 2.8 0.7 State income taxes, net of federal benefit 0.9 0.6 1.6 Foreign rate differential — (0.1) 0.4 Stock-based compensation (1.5) (5.4) (3.6) U.S. federal tax (benefit) expense on foreign earnings (2.4) 0.4 (1.7) Benefit from tax planning and entity structuring activities (2.5) (0.8) (1.5) Research and development credits (3.2) (3.1) (3.2) Foreign-derived intangible income deduction (5.7) (4.0) (2.8) Other 0.1 0.4 1.3 9.0 % 11.8 % 12.2 % |
Components Of Deferred Tax Assets And Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, (in thousands) 2022 2021 Deferred tax assets: Research and experimentation capitalization $ 85,677 $ — Uncertain tax positions 41,569 35,574 Net operating loss carryforwards 39,034 47,235 Operating lease liabilities 31,726 30,634 Debt obligation basis difference 28,758 — Stock-based compensation 27,548 25,578 Employee benefits 13,343 12,902 Research and development credits 5,390 5,393 Allowance for doubtful accounts 4,376 3,522 Other 2,638 1,926 Valuation allowance (17,336) (14,936) Total deferred tax assets 262,723 147,828 Deferred tax liabilities: Other intangible assets (192,018) (173,895) Operating lease right-of-use assets (30,308) (29,296) Deferred revenue (8,979) (19,521) Property and equipment (5,029) (5,785) Total deferred tax liabilities (236,334) (228,497) Net deferred tax assets (liabilities) $ 26,389 $ (80,669) |
Reconciliation Of Unrecognized Tax Benefits | The following is a reconciliation of the total amounts of unrecognized tax benefits: Year Ended December 31, (in thousands) 2022 2021 2020 Unrecognized tax benefit as of January 1 $ 39,641 $ 24,075 $ 49,085 Gross changes—acquisitions — — (24,963) Gross increases—tax positions in prior period 403 10,183 1,572 Gross decreases—tax positions in prior period (2,780) (2,281) — Gross increases—tax positions in current period 13,905 13,223 1,281 Reductions due to a lapse of the applicable statute of limitations (3,743) (3,226) (3,502) Changes due to currency fluctuation (1,654) (912) 994 Settlements — (1,421) (392) Unrecognized tax benefit as of December 31 $ 45,772 $ 39,641 $ 24,075 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 is as follows: Year Ended December 31, (in thousands, except per share amounts) 2022 2021 2020 Cost of sales: Maintenance and service 10,073 12,390 13,626 Operating expenses: Selling, general and administrative 93,117 91,772 73,491 Research and development 64,938 62,176 58,498 Stock-based compensation expense before taxes 168,128 166,338 145,615 Related income tax benefits (50,209) (75,241) (56,485) Stock-based compensation expense, net of taxes $ 117,919 $ 91,097 $ 89,130 Net impact on earnings per share: Basic earnings per share $ (1.35) $ (1.05) $ (1.04) Diluted earnings per share $ (1.35) $ (1.03) $ (1.02) |
Summary of Stock Options | Information regarding stock option transactions is summarized below: Year Ended December 31, 2022 2021 2020 (options in thousands) Options Weighted- Options Weighted- Options Weighted- Outstanding, beginning of year 375 $ 83.67 648 $ 74.26 984 $ 67.49 Granted — $ — — $ — — $ — Exercised (148) $ 67.56 (270) $ 61.42 (336) $ 54.43 Forfeited (1) $ 67.44 (3) $ 55.46 — $ — Outstanding, end of year 226 $ 94.24 375 $ 83.67 648 $ 74.26 Vested and Exercisable, end of year 226 $ 94.24 375 $ 83.67 648 $ 74.26 Nonvested — $ — — $ — — $ — 2022 2021 2020 Weighted Average Remaining Contractual Term (in years) Outstanding 3.53 3.09 2.93 Vested and Exercisable 3.53 3.09 2.93 Nonvested 0.00 0.00 0.00 Aggregate Intrinsic Value (in thousands) Exercised $ 30,358 $ 82,790 $ 78,269 Outstanding $ 33,361 $ 118,995 $ 187,679 Vested and Exercisable $ 33,361 $ 118,995 $ 187,679 Nonvested $ — $ — $ — Compensation Expense - Stock Options (in thousands) $ — $ — $ 1,030 |
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, 2022 2021 2020 (RSUs in thousands) RSUs Weighted- RSUs Weighted- RSUs Weighted- Nonvested, beginning of year 1,068 $ 277.71 1,323 $ 201.98 1,618 $ 165.26 Granted (1) 851 $ 299.58 501 $ 333.50 501 $ 256.47 Performance adjustment - awards with market condition (2) (8) $ 276.73 17 $ 238.99 18 $ 191.76 Performance adjustment - awards with performance condition (2) 73 $ 300.28 63 $ 376.48 (10) $ 279.08 Vested (592) $ 256.72 (793) $ 194.50 (742) $ 158.13 Forfeited (182) $ 295.13 (43) $ 263.13 (62) $ 193.28 Nonvested, end of year 1,210 $ 302.09 1,068 $ 277.71 1,323 $ 201.98 (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, 2022 is summarized below: (options in thousands) Options Outstanding & Exercisable Range of Exercise Prices Options Weighted- Weighted- $12.26 - $86.01 9 1.02 $ 80.88 $86.57 8 2.67 $ 86.57 $94.15 1 2.58 $ 94.15 $95.09 208 3.67 $ 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 2022 2021 2020 Risk-free interest rate 1.8% 0.3% 0.7% Expected dividend yield —% —% —% Expected volatility—Ansys stock price 37% 36% 25% Expected volatility—Nasdaq Composite Index 26% 26% 18% Expected term 2.8 years 2.8 years 2.8 years Correlation factor 0.84 0.84 0.77 Weighted average fair value per share $290.65 $238.87 $245.08 |
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, 2022 Diversified Undiversified Total Deferred Awards Outstanding, beginning of year 6,998 56,824 63,822 Shares Diversified — — — Deferred Awards Outstanding, end of year 6,998 56,824 63,822 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 |
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, 2022 2021 2020 BOD RSUs Weighted- BOD RSUs Weighted- BOD RSUs Weighted- Nonvested, beginning of year 6,428 $ 330.08 8,071 $ 253.93 9,688 $ 187.53 Granted 9,515 $ 254.23 6,576 $ 329.78 9,664 $ 253.40 Vested (6,428) $ 330.08 (8,219) $ 255.06 (10,704) $ 193.35 Forfeited — $ — — $ — (577) $ 253.93 Nonvested, end of year 9,515 $ 254.23 6,428 $ 330.08 8,071 $ 253.93 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2020 Number of shares repurchased 725 347 690 Average price paid per share $ 283.38 $ 388.35 $ 233.48 Total cost $ 205,571 $ 134,679 $ 161,029 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segments, Geographical Areas [Abstract] | |
Revenue By Geographic Area | Revenue by geographic area was as follows: Year Ended December 31, (in thousands) 2022 2021 2020 United States $ 932,587 $ 867,125 $ 776,716 Germany 198,612 158,541 160,771 Japan 186,199 193,096 183,117 South Korea 127,948 105,853 74,953 Other EMEA 349,159 359,074 307,933 Other international 271,048 223,026 177,807 Total revenue $ 2,065,553 $ 1,906,715 $ 1,681,297 |
Property and Equipment by Geographic Area | Property and equipment by geographic area was as follows: December 31, (in thousands) 2022 2021 United States $ 58,258 $ 62,880 India 5,978 6,144 Germany 2,533 4,434 Other EMEA 8,510 9,215 Other international 5,559 5,241 Total property and equipment, net $ 80,838 $ 87,914 |
Unconditional Purchase Obliga_2
Unconditional Purchase Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |
Unconditional Purchase Obligations | Future expenditures under unconditional purchase obligations in effect as of December 31, 2022 are as follows: (in thousands) 2023 $ 54,775 2024 18,832 2025 4,446 2026 3,542 2027 2,663 Total $ 84,258 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
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, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Lease license to license revenue | 50% | ||
Lease license to maintenance revenue | 50% | ||
Amortization of intangible assets | $ 85,100 | $ 76,000 | $ 57,200 |
Provision for bad debts | 6,222 | 1,006 | 6,438 |
Net foreign exchange (gain) loss | $ (1,600) | $ 1,800 | $ 200 |
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 |
Money Market Funds | Money Market Fund Concentration Risk | Money Market Fund Benchmark | |||
Concentration risk, % of money market funds with two issuers | 100% | ||
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash accounts, Amount | $ 503,733 | $ 580,047 |
Money market funds, Amount | 110,658 | 87,620 |
Total | $ 614,391 | $ 667,667 |
Cash | ||
Percent Of Cash And Cash Equivalents | 82% | 86.90% |
Money Market Funds | ||
Percent Of Cash And Cash Equivalents | 18% | 13.10% |
Money Market Funds | Money Market Fund Benchmark | Money Market Fund Concentration Risk | ||
Concentration risk, % of money market funds with two issuers | 100% |
Accounting Policies - Schedule
Accounting Policies - Schedule of Risk Concentration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Total | $ 614,391 | $ 667,667 | |
Customer Concentration Risk | Revenue Benchmark | Channel Partner | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24% | 24% | 22% |
Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents held in excess of deposit insurance, foreign and domestic | $ 597,471 | $ 652,830 | |
Largest balance of cash and cash equivalents held with one financial institution, foreign and domestic | 238,058 | 201,524 | |
United States | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total | 326,784 | 365,390 | |
Foreign | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Total | $ 287,607 | $ 302,277 |
Accounting Policies - Allowance
Accounting Policies - Allowance for Doubtful Accounts Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance - January 1 | $ 14,600 | $ 14,000 | $ 8,700 |
Additions: Charges to costs and expenses | 6,222 | 1,006 | 6,438 |
Deductions: Write-offs | (2,522) | (406) | (1,138) |
Ending balance - December 31 | $ 18,300 | $ 14,600 | $ 14,000 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net income | $ 523,710 | $ 454,627 | $ 433,887 |
Weighted average shares outstanding - basic | 87,051 | 87,100 | 85,840 |
Dilutive effect of stock plans | 439 | 1,002 | 1,448 |
Weighted average shares outstanding - diluted | 87,490 | 88,102 | 87,288 |
Basic earnings per share | $ 6.02 | $ 5.22 | $ 5.05 |
Diluted earnings per share | $ 5.99 | $ 5.16 | $ 4.97 |
Anti-dilutive shares | 300 | 23 | 23 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Amount of revenue recognized from beginning deferred revenue and backlog | $ 764.9 | $ 606.8 |
Amount of revenue recognized from beginning deferred revenue | $ 391.5 | $ 372.1 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | |||
Total revenue | $ 2,065,553 | $ 1,906,715 | $ 1,681,297 |
Subscription lease licenses | |||
Statement [Line Items] | |||
Total revenue | 687,665 | 617,643 | 500,105 |
Perpetual licenses | |||
Statement [Line Items] | |||
Total revenue | 301,313 | 328,154 | 280,745 |
Software licenses | |||
Statement [Line Items] | |||
Total revenue | 988,978 | 945,797 | 780,850 |
Maintenance | |||
Statement [Line Items] | |||
Total revenue | 1,004,245 | 896,037 | 840,597 |
Service | |||
Statement [Line Items] | |||
Total revenue | 72,330 | 64,881 | 59,850 |
Maintenance and service | |||
Statement [Line Items] | |||
Total revenue | $ 1,076,575 | $ 960,918 | $ 900,447 |
Direct revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | |||
Statement [Line Items] | |||
Concentration risk, percentage | 76.10% | 76.30% | 77.80% |
Indirect revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | |||
Statement [Line Items] | |||
Concentration risk, percentage | 23.90% | 23.70% | 22.20% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | $ 412,781 | $ 388,810 |
Acquired deferred revenue | 5,818 | 3,831 |
Deferral of revenue | 2,099,550 | 1,937,974 |
Recognition of deferred revenue | (2,065,553) | (1,906,715) |
Currency translation | (16,838) | (11,119) |
Ending balance | $ 435,758 | $ 412,781 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations, Expected Timing of Satisfaction (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1,416,846 |
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 | $ 846,312 |
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 | $ 356,075 |
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 | $ 170,977 |
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]: 2026-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 43,482 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||||
Acquisition costs | $ 10,300 | $ 6,000 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 386,264 | 510,805 | $ 572,328 | |
Cash | 522,240 | |||
Business Acquisition [Line Items] | ||||
Cash | 522,240 | |||
Total consideration | 401,800 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 386,264 | 510,805 | $ 572,328 | |
Zemax, LLC | ||||
Business Combination and Asset Acquisition [Abstract] | ||||
Percentage of shares acquired | 100% | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 399,100 | |||
Cash | $ 411,501 | |||
Business Acquisition [Line Items] | ||||
Percentage of shares acquired | 100% | |||
Cash | $ 411,501 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 399,100 | |||
Series of Individually Immaterial Business Acquisitions | ||||
Business Combination and Asset Acquisition [Abstract] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 391,600 | 106,400 | ||
Cash | 396,455 | 110,739 | ||
Business Acquisition [Line Items] | ||||
Cash | 396,455 | 110,739 | ||
Consideration not yet paid | 5,391 | |||
Total consideration | 401,846 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 391,600 | $ 106,400 |
Acquisitions - Recognized Amoun
Acquisitions - Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Cash | $ 10,242 | $ 16,673 | |
Accounts receivable and other tangible assets | 4,821 | 9,809 | |
Accounts payable and other liabilities | (6,276) | (7,857) | |
Deferred revenue | (5,818) | (3,831) | |
Net deferred tax liabilities | (28,060) | (30,227) | |
Total identifiable net assets | 115,969 | 133,067 | |
Goodwill | 285,877 | 389,173 | |
Developed software and core technologies | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 127,830 | $ 128,200 | |
Finite-lived intangible asset, useful life | 9 years | 11 years | |
Customer lists | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 7,926 | $ 12,300 | |
Finite-lived intangible asset, useful life | 14 years | 8 years | |
Trade names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 5,304 | $ 8,000 | |
Finite-lived intangible asset, useful life | 10 years | 10 years | |
Zemax, LLC | |||
Business Acquisition [Line Items] | |||
Cash | $ 12,353 | ||
Accounts receivable and other tangible assets | 6,831 | ||
Accounts payable and other liabilities | (4,915) | ||
Deferred revenue | (3,085) | ||
Net deferred tax liabilities | (24,171) | ||
Total identifiable net assets | 100,013 | ||
Goodwill | 311,488 | ||
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 | (2,942) | ||
Deferred revenue | (746) | ||
Net deferred tax liabilities | (6,056) | ||
Total identifiable net assets | 33,054 | ||
Goodwill | 77,685 | ||
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) | 12 Months Ended | ||
Oct. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Developed software and core technologies | |||
Finite-lived intangible asset, useful life | 9 years | 11 years | |
Trade names | |||
Finite-lived intangible asset, useful life | 10 years | 10 years | |
Customer lists | |||
Finite-lived intangible asset, useful life | 14 years | 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% | ||
Discount Rate | 8% | ||
Zemax, LLC | Customer lists | |||
Finite-lived intangible asset, useful life | 8 years | ||
Discount Rate | 7.50% | ||
Attrition Rate | 10% | ||
Other Acquisitions | Developed software and core technologies | Minimum | |||
Discount Rate | 9.50% | ||
Other Acquisitions | Developed software and core technologies | Maximum | |||
Discount Rate | 18% | ||
Other Acquisitions | Trade names | Minimum | |||
Royalty Rate | 1% | ||
Discount Rate | 10% | ||
Other Acquisitions | Trade names | Maximum | |||
Royalty Rate | 2% | ||
Discount Rate | 18% | ||
Other Acquisitions | Customer lists | Minimum | |||
Discount Rate | 9.50% | ||
Attrition Rate | 5% | ||
Other Acquisitions | Customer lists | Maximum | |||
Discount Rate | 15% | ||
Attrition Rate | 30% |
Other Receivables and Current_3
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | ||
Receivables related to unrecognized revenue | $ 209,139 | $ 200,888 |
Income taxes receivable, including overpayments and refunds | 28,963 | 71,332 |
Prepaid expenses and other current assets | 51,159 | 52,435 |
Total other receivables and current assets | 289,261 | 324,655 |
Consumption, sales and VAT tax liabilities | 41,812 | 52,630 |
Accrued expenses and other current liabilities | 156,408 | 151,879 |
Total other accrued expenses and liabilities | $ 198,220 | $ 204,509 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense related to property and equipment | $ 29.5 | $ 30.9 | $ 28 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 239,145 | $ 244,035 |
Less: Accumulated depreciation | (158,307) | (156,121) |
Property and equipment, net | 80,838 | 87,914 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 127,672 | 127,093 |
Computer Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27,030 | 35,134 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 38,991 | 38,391 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27,560 | 25,948 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,196 | 14,773 |
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) | 12 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | Dec. 31, 2021 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 1,498,697 | $ 1,371,311 |
Amortized intangible assets, accumulated amortization | (689,871) | (608,549) |
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 | 1,106,789 | 985,685 |
Amortized intangible assets, accumulated amortization | (483,033) | (422,797) |
Customer lists | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 205,484 | 203,072 |
Amortized intangible assets, accumulated amortization | (71,618) | (57,175) |
Trade names | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 186,424 | 182,554 |
Amortized intangible assets, accumulated amortization | $ (135,220) | $ (128,577) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 94,544 | |
2024 | 99,348 | |
2025 | 100,509 | |
2026 | 102,172 | |
2027 | 104,205 | |
Thereafter | 308,048 | |
Total intangible assets subject to amortization, net | 808,826 | |
Indefinite-lived trade name | 357 | |
Other intangible assets, net | $ 809,183 | $ 763,119 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 3,409,271 | $ 3,038,306 |
Acquisitions and adjustments | 284,503 | 391,534 |
Currency translation | (35,507) | (20,569) |
Ending balance | $ 3,658,267 | $ 3,409,271 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 110,658 | $ 87,620 |
Short-term investments | 183 | 361 |
Deferred compensation plan investments | 1,618 | 1,602 |
Equity securities | 892 | 2,500 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 110,658 | 87,620 |
Short-term investments | 0 | 0 |
Deferred compensation plan investments | 1,618 | 1,602 |
Equity securities | 892 | 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 | 183 | 361 |
Deferred compensation plan investments | 0 | 0 |
Equity securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Deferred compensation plan investments | 0 | 0 |
Equity securities | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 USD ($) 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Lease liability cost | $ 27,543 | $ 28,357 | $ 24,818 |
Variable lease cost not included in the lease liability | 4,436 | 4,085 | 5,067 |
Total lease cost | $ 31,979 | $ 32,442 | $ 29,885 |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ (26,767) | $ (28,474) | $ (22,470) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 36,735 | $ 13,586 | $ 48,248 |
Weighted-average remaining lease term of operating leases | 6 years 10 months 24 days | 7 years 2 months 12 days | |
Weighted-average discount rate of operating leases | 3.10% | 3% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 26,559 | |
2024 | 24,092 | |
2025 | 20,434 | |
2026 | 18,655 | |
2027 | 18,071 | |
Thereafter | 43,427 | |
Total future lease payments | 151,238 | |
Less: Present value adjustment | (15,633) | |
Present value of future lease payments | $ 135,605 | |
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 ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Line Items] | ||
Long-Term Debt | $ 755,000,000 | $ 755,000,000 |
Weighted-average interest rate over time | 2.72% | 1.37% |
Weighted-average interest rate at a point in time | 5.56% | |
Consolidated leverage ratio | 3.50 | |
Consolidated leverage ratio increased | 4 | |
Qualified acquisition amount | $ 250,000,000 | |
Unsecured Long-Term Debt, Noncurrent | 753,600,000 | $ 753,600,000 |
Unamortized debt issuance cost | 1,400,000 | 1,400,000 |
Revolving Credit Facility | ||
Debt Disclosure [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |
Foreign currency borrowings sublimit | 150,000,000 | |
Outstanding borrowings under the credit agreement | 0 | $ 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 Overnight Bank Funding Rate | 0.50% | |
Debt Instrument, Basis Spread on SOFR Rate | 1% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Deferred tax assets, operating loss carryforwards, state and local | $ 1,900 | ||
Tax credit carryforwards | 7,100 | ||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 3,500 | ||
Unrecognized tax benefits that would impact effective tax rate | 15,100 | ||
Penalty expense | 700 | $ 1,800 | $ 200 |
Interest (expense) income | (100) | 200 | $ (300) |
Liability for penalties | 7,900 | 7,200 | |
Liability for interest | 3,000 | $ 5,200 | |
Tax Credit Carry Forward With No Expiration Date | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | 500 | ||
Tax Credit Carryforward With Expiration | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | 6,600 | ||
Subject To Utilization Limitations | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | 1,000 | ||
Federal Domestic | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 15,900 | ||
Federal Domestic | Operating Loss Carryforward With No Expiration Date | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 15,100 | ||
Federal Domestic | Subject To Expiration | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 800 | ||
Foreign Country | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 144,400 | ||
Foreign Country | Operating Loss Carryforward With No Expiration Date | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 104,600 | ||
Foreign Country | Subject To Expiration | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 39,800 | ||
Unrealizable Tax Assets | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance, deferred tax asset, increase (decrease), amount | 3,200 | ||
Currency Fluctuations on Balances relating to Foreign Jurisdictions | |||
Income Tax Contingency [Line Items] | |||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (800) |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 504,797 | $ 460,395 | $ 465,382 |
Foreign | 70,518 | 54,959 | 28,543 |
Income before income tax provision | $ 575,315 | $ 515,354 | $ 493,925 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 103,007 | $ 44,805 | $ 26,855 |
Current, State | 11,286 | 6,626 | 12,738 |
Current, Foreign | 68,028 | 43,786 | 51,377 |
Deferred, Federal | (94,398) | (32,449) | (12,203) |
Deferred, State | (9,647) | (1,691) | (2,119) |
Deferred, Foreign | (26,671) | (350) | (16,610) |
Total | $ 51,605 | $ 60,727 | $ 60,038 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21% | 21% | 21% |
Nondeductible expenses | 2.30% | 2.80% | 0.70% |
State income taxes, net of federal benefit | 0.90% | 0.60% | 1.60% |
Foreign rate differential | 0% | (0.10%) | 0.40% |
Stock-based compensation | (1.50%) | (5.40%) | (3.60%) |
U.S. federal tax (benefit) expense on foreign earnings | (2.40%) | 0.40% | (1.70%) |
Benefit from tax planning and entity structuring activities | (2.50%) | (0.80%) | (1.50%) |
Research and development credits | (3.20%) | (3.10%) | (3.20%) |
Foreign-derived intangible income deduction | (5.70%) | (4.00%) | (2.80%) |
Other | 0.10% | 0.40% | 1.30% |
Consolidated effective tax rate | 9% | 11.80% | 12.20% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Research and experimentation capitalization | $ 85,677 | $ 0 |
Uncertain tax positions | 41,569 | 35,574 |
Net operating loss carryforwards | 39,034 | 47,235 |
Operating lease liabilities | 31,726 | 30,634 |
Debt obligation basis difference | 28,758 | 0 |
Stock-based compensation | 27,548 | 25,578 |
Employee benefits | 13,343 | 12,902 |
Research and development credits | 5,390 | 5,393 |
Allowance for doubtful accounts | 4,376 | 3,522 |
Other | 2,638 | 1,926 |
Valuation allowance | (17,336) | (14,936) |
Total deferred tax assets | 262,723 | 147,828 |
Other intangible assets | (192,018) | (173,895) |
Operating lease right-of-use assets | (30,308) | (29,296) |
Deferred revenue | (8,979) | (19,521) |
Property and equipment | (5,029) | (5,785) |
Total deferred tax liabilities | (236,334) | (228,497) |
Net deferred tax assets (liabilities) | $ 26,389 | |
Net deferred tax assets (liabilities) | $ (80,669) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit as of January 1 | $ 39,641 | $ 24,075 | $ 49,085 |
Gross decreases-acquisitions | (24,963) | ||
Gross increases-acquisitions | 0 | 0 | |
Gross increases-tax positions in prior period | 403 | 10,183 | 1,572 |
Gross decreases-tax positions in prior period | (2,780) | (2,281) | 0 |
Gross increases-tax positions in current period | 13,905 | 13,223 | 1,281 |
Reductions due to a lapse of the applicable statute of limitations | (3,743) | (3,226) | (3,502) |
Changes due to currency fluctuation | 994 | ||
Changes due to currency fluctuation | (1,654) | (912) | |
Settlements | 0 | (1,421) | (392) |
Unrecognized tax benefit as of December 31 | $ 45,772 | $ 39,641 | $ 24,075 |
Pension And Profit-Sharing Pl_2
Pension And Profit-Sharing Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) h | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Total unfunded portion of the benefit obligations | $ 9.4 | $ 9.2 | |
Expenses related to retirement programs | $ 21.9 | $ 20 | $ 18.7 |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expiration period of options from the date of grant | 10 years | ||
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% | ||
Percentage of employee pay employer matches | 3% | ||
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% | ||
Percentage of employee pay employer matches | 5% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
2021 Plan number of shares authorized | 4,400,000 | ||
Newly authorized shares | 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 | $ 241,600,000 | ||
Weighted-average period of recognition of unrecognized compensation cost (years) | 1 year 6 months | ||
Stock-based compensation expense | $ 168,128,000 | $ 166,338,000 | $ 145,615,000 |
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 | $ 161,700,000 | 160,200,000 | 138,300,000 |
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 | $ 2,300,000 | 2,100,000 | 2,200,000 |
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 | ||
Minimum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||
ANSYS 1996 Employee Stock Purchase Plan | Employee Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,200,000 | $ 4,000,000 | $ 4,100,000 |
Share-based compensation arrangement by share-based payment award, shares issued as of date | 100,000 | ||
ANSYS 2022 Employee Stock Purchase Plan | Employee Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Newly authorized shares | 750,000 | ||
Stock-based compensation expense | $ 4,200,000 | ||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 750,000 | ||
Share-based compensation arrangement by share-based payment award, maximum employee subscription rate | 10% | ||
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, maximum dollar amount of common stock purchasable in a calendar year | $ 25,000 | ||
ANSYS 2022 Employee Stock Purchase Plan | Employee Stock | Before January 31, 2023 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 90% | ||
ANSYS 2022 Employee Stock Purchase Plan | Employee Stock | After January 31, 2023 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 85% | ||
ANSYS 2022 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% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 168,128 | $ 166,338 | $ 145,615 |
Related income tax benefits | (50,209) | (75,241) | (56,485) |
Stock-based compensation expense, net of taxes | $ 117,919 | $ 91,097 | $ 89,130 |
Basic earnings per share (in dollars per share) | $ (1.35) | $ (1.05) | $ (1.04) |
Diluted earnings per share (in dollars per share) | $ (1.35) | $ (1.03) | $ (1.02) |
Maintenance and service | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 10,073 | $ 12,390 | $ 13,626 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | 93,117 | 91,772 | 73,491 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense before taxes | $ 64,938 | $ 62,176 | $ 58,498 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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) | $ 83.67 | $ 74.26 | $ 67.49 |
Granted, Weighted-Average Exercise Price (in dollars per share) | 0 | 0 | 0 |
Exercised, Weighted-Average Exercise Price (in dollars per share) | 67.56 | 61.42 | 54.43 |
Forfeited, Weighted-Average Exercise Price (in dollars per share) | 67.44 | 55.46 | 0 |
Outstanding, end of year, Weighted-Average Exercise Price (in dollars per share) | 94.24 | 83.67 | 74.26 |
Vested and Exercisable, end of year, Weighted-Average Exercise Price (in dollars per share) | 94.24 | 83.67 | 74.26 |
Nonvested, Weighted-Average Exercise Price (in dollars per share) | $ 0 | $ 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of year, Options (in shares) | 375 | 648 | 984 |
Granted, Options (in shares) | 0 | 0 | 0 |
Exercised, Options (in shares) | (148) | (270) | (336) |
Forfeited, Options (in shares) | (1) | (3) | 0 |
Outstanding, end of year, Options (in shares) | 226 | 375 | 648 |
Vested and Exercisable, end of year, Options (in shares) | 226 | 375 | 648 |
Nonvested, Options (in shares) | 0 | 0 | 0 |
Outstanding, Weighted-Average Remaining Contractual Term (in years) | 3 years 6 months 10 days | 3 years 1 month 2 days | 2 years 11 months 4 days |
Vested and Exercisable, Weighted-Average Remaining Contractual Term (in years) | 3 years 6 months 10 days | 3 years 1 month 2 days | 2 years 11 months 4 days |
Nonvested, Weighted-Average Remaining Contractual Term (in years) | 0 years | 0 years | 0 years |
Exercised, Aggregate Intrinsic Value | $ 30,358 | $ 82,790 | $ 78,269 |
Outstanding, Aggregate Intrinsic Value | 33,361 | 118,995 | 187,679 |
Vested and Exercisable, Aggregate Intrinsic Value | 33,361 | 118,995 | 187,679 |
Nonvested, Aggregate Intrinsic Value | 0 | 0 | 0 |
Compensation Expense - Stock Options (in thousands) | $ 0 | $ 0 | $ 1,030 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information Regarding Stock Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
$12.26 - $86.01 | |
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) | $ 86.01 |
Options Outstanding, Options (in shares) | shares | 9,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 1 year 7 days |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 80.88 |
$86.57 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (in dollars per share) | 86.57 |
Range of Exercise Prices, Upper Limit (in dollars per share) | $ 86.57 |
Options Outstanding, Options (in shares) | shares | 8,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 2 years 8 months 1 day |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 86.57 |
$94.15 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (in dollars per share) | 94.15 |
Range of Exercise Prices, Upper Limit (in dollars per share) | $ 94.15 |
Options Outstanding, Options (in shares) | shares | 1,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 2 years 6 months 29 days |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 94.15 |
$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 | 208,000 |
Options Outstanding, Weighted-Average Remaining Contractual Life (years) | 3 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.80% | 0.30% | 0.70% |
Expected dividend yield | 0% | 0% | 0% |
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 | 0.84 | 0.77 |
Weighted average fair value per share (in dollars per share) | $ 290.65 | $ 238.87 | $ 245.08 |
Ansys Stock Price | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility | 37% | 36% | 25% |
Nasdaq Composite Index | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected volatility | 26% | 26% | 18% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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) | 1,068 | 1,323 | 1,618 |
Granted, RSUs (in shares) | 851 | 501 | 501 |
Performance adjustment, market condition, RSUs (in shares) | (8) | 17 | 18 |
Performance adjustment, performance condition, RSUs (in shares) | 73 | 63 | (10) |
Vested, RSUs (in shares) | (592) | (793) | (742) |
Forfeited, RSUs (in shares) | (182) | (43) | (62) |
Nonvested, end of year, RSUs (in shares) | 1,210 | 1,068 | 1,323 |
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) | $ 277.71 | $ 201.98 | $ 165.26 |
Granted, weighted-average grant date fair value, RSUs (in dollars per share) | 299.58 | 333.50 | 256.47 |
Performance adjustment, market condition, weighted-average grant date fair value, RSUs (in dollars per share) | 276.73 | 238.99 | 191.76 |
Performance adjustment, performance condition, weighted-average grant date fair value, RSUs (in dollars per share) | 300.28 | 376.48 | 279.08 |
Vested, weighted-average grant date fair value, RSUs (in dollars per share) | 256.72 | 194.50 | 158.13 |
Forfeited, weighted-average grant date fair value, RSUs (in dollars per share) | 295.13 | 263.13 | 193.28 |
Nonvested, end of year, weighted-Average grant date fair value, RSUs (in dollars per share) | $ 302.09 | $ 277.71 | $ 201.98 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Deferred Stock Awards to Non-Employee Directors (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Deferred awards outstanding, beginning of year (in shares) | 63,822 | 65,679 | 65,679 |
Shares diversified (in shares) | 0 | 0 | 0 |
Shares issued upon retirement (in shares) | (1,857) | ||
Deferred awards outstanding, end of year (in shares) | 63,822 | 63,822 | 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 | 6,998 | 5,598 |
Shares diversified (in shares) | 0 | 0 | 1,400 |
Shares issued upon retirement (in shares) | 0 | ||
Deferred awards outstanding, end of year (in shares) | 6,998 | 6,998 | 6,998 |
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) | 56,824 | 58,681 | 60,081 |
Shares diversified (in shares) | 0 | 0 | (1,400) |
Shares issued upon retirement (in shares) | (1,857) | ||
Deferred awards outstanding, end of year (in shares) | 56,824 | 56,824 | 58,681 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Restricted Stock Units to Non-Employee Directors (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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) | 1,068,000 | 1,323,000 | 1,618,000 |
Granted, RSUs (in shares) | 851,000 | 501,000 | 501,000 |
Vested, RSUs (in shares) | (592,000) | (793,000) | (742,000) |
Forfeited, RSUs (in shares) | (182,000) | (43,000) | (62,000) |
Nonvested, end of year, RSUs (in shares) | 1,210,000 | 1,068,000 | 1,323,000 |
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) | $ 277.71 | $ 201.98 | $ 165.26 |
Granted, weighted-average grant date fair value, RSUs (in dollars per share) | 299.58 | 333.50 | 256.47 |
Vested, weighted-average grant date fair value, RSUs (in dollars per share) | 256.72 | 194.50 | 158.13 |
Forfeited, weighted-average grant date fair value, RSUs (in dollars per share) | 295.13 | 263.13 | 193.28 |
Nonvested, end of year, weighted-Average grant date fair value, RSUs (in dollars per share) | $ 302.09 | $ 277.71 | $ 201.98 |
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) | 6,428 | 8,071 | 9,688 |
Granted, RSUs (in shares) | 9,515 | 6,576 | 9,664 |
Vested, RSUs (in shares) | (6,428) | (8,219) | (10,704) |
Forfeited, RSUs (in shares) | 0 | 0 | (577) |
Nonvested, end of year, RSUs (in shares) | 9,515 | 6,428 | 8,071 |
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) | $ 330.08 | $ 253.93 | $ 187.53 |
Granted, weighted-average grant date fair value, RSUs (in dollars per share) | 254.23 | 329.78 | 253.40 |
Vested, weighted-average grant date fair value, RSUs (in dollars per share) | 330.08 | 255.06 | 193.35 |
Forfeited, weighted-average grant date fair value, RSUs (in dollars per share) | 0 | 0 | 253.93 |
Nonvested, end of year, weighted-Average grant date fair value, RSUs (in dollars per share) | $ 254.23 | $ 330.08 | $ 253.93 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock Disclosures [Abstract] | |||
Number of shares repurchased | 725 | 347 | 690 |
Average price paid per share | $ 283.38 | $ 388.35 | $ 233.48 |
Total cost | $ 205,571 | $ 134,679 | $ 161,029 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) shares in Millions | Dec. 31, 2022 shares |
Class of Stock Disclosures [Abstract] | |
Stock repurchase program, remaining number of shares authorized to be repurchased | 1.7 |
Royalty Agreements (Details)
Royalty Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cost of goods and services sold | $ 250,641 | $ 257,984 | $ 225,264 |
Royalty | |||
Cost of goods and services sold | $ 32,000 | $ 36,900 | $ 29,600 |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 2,065,553 | $ 1,906,715 | $ 1,681,297 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 932,587 | 867,125 | 776,716 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 198,612 | 158,541 | 160,771 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 186,199 | 193,096 | 183,117 |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 127,948 | 105,853 | 74,953 |
Other EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 349,159 | 359,074 | 307,933 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 271,048 | $ 223,026 | $ 177,807 |
Geographic Information - Proper
Geographic Information - Property and Equipment by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 80,838 | $ 87,914 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 58,258 | 62,880 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 5,978 | 6,144 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 2,533 | 4,434 |
Other EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 8,510 | 9,215 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 5,559 | $ 5,241 |
Unconditional Purchase Obliga_3
Unconditional Purchase Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |
2023 | $ 54,775 |
2024 | 18,832 |
2025 | 4,446 |
2026 | 3,542 |
2027 | 2,663 |
Total | $ 84,258 |
Unconditional Purchase Obliga_4
Unconditional Purchase Obligations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |||
Unconditional purchase obligations, beginning of year | $ 54.8 | $ 44.9 | $ 37.2 |
Contingencies and Commitments -
Contingencies and Commitments - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
India Service Tax Audit | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 6.9 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 386,264 | $ 510,805 | $ 572,328 | |
Other Acquisitions | ||||
Subsequent Event [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 391,600 | $ 106,400 | ||
Other Acquisitions | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 120,700 |