Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-20853 | |
Entity Registrant Name | ANSYS, Inc. | |
Entity Central Index Key | 0001013462 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3219960 | |
Entity Address, Address Line One | 2600 ANSYS Drive, | |
Entity Address, City or Town | Canonsburg, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15317 | |
City Area Code | 844 | |
Local Phone Number | 462-6797 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 86,661,338 | |
The Nasdaq Global Select Market | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | ANSS | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 507,689 | $ 614,391 |
Short-term investments | 165 | 183 |
Accounts receivable, less allowance for doubtful accounts of $18,300 | 653,763 | 760,287 |
Other receivables and current assets | 222,459 | 289,261 |
Total current assets | 1,384,076 | 1,664,122 |
Long-term assets: | ||
Property and equipment, net | 80,825 | 80,838 |
Operating lease right-of-use assets | 127,198 | 129,140 |
Goodwill | 3,737,195 | 3,658,267 |
Other intangible assets, net | 870,544 | 809,183 |
Other long-term assets | 196,305 | 261,880 |
Deferred income taxes | 84,791 | 84,515 |
Total long-term assets | 5,096,858 | 5,023,823 |
Total assets | 6,480,934 | 6,687,945 |
Current liabilities: | ||
Accounts payable | 21,938 | 14,021 |
Accrued bonuses and commissions | 37,584 | 160,908 |
Accrued income taxes | 10,908 | 7,698 |
Other accrued expenses and liabilities | 184,154 | 198,220 |
Deferred revenue | 396,331 | 413,989 |
Total current liabilities | 650,915 | 794,836 |
Long-term liabilities: | ||
Deferred income taxes | 83,758 | 58,126 |
Long-term operating lease liabilities | 110,227 | 112,802 |
Long-term debt | 753,653 | 753,574 |
Other long-term liabilities | 100,219 | 102,756 |
Total long-term liabilities | 1,047,857 | 1,027,258 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 2,000,000 shares authorized; zero shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 300,000,000 shares authorized; 95,267,307 shares issued | 953 | 953 |
Additional paid-in capital | 1,505,788 | 1,540,317 |
Retained earnings | 4,883,552 | 4,782,930 |
Treasury stock, at cost: 8,611,394 and 8,317,389 shares, respectively | (1,498,693) | (1,335,627) |
Accumulated other comprehensive loss | (109,438) | (122,722) |
Total stockholders' equity | 4,782,162 | 4,865,851 |
Total liabilities and stockholders' equity | $ 6,480,934 | $ 6,687,945 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 18,300 | $ 18,300 |
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 | 8,611,394 | 8,317,389 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Total revenue | $ 509,447 | $ 425,077 |
Cost of sales: | ||
Amortization | 19,618 | 17,252 |
Total cost of sales | 67,652 | 64,760 |
Gross profit | 441,795 | 360,317 |
Operating expenses: | ||
Selling, general and administrative | 188,584 | 169,755 |
Research and development | 120,335 | 105,274 |
Amortization | 5,181 | 4,125 |
Total operating expenses | 314,100 | 279,154 |
Operating income | 127,695 | 81,163 |
Interest income | 4,078 | 527 |
Interest expense | (10,758) | (2,967) |
Other expense, net | (177) | (694) |
Income before income tax provision | 120,838 | 78,029 |
Income tax provision | 20,216 | 7,041 |
Net income | $ 100,622 | $ 70,988 |
Earnings per share – basic: | ||
Earnings per share | $ 1.16 | $ 0.81 |
Weighted average shares | 86,930 | 87,122 |
Earnings per share – diluted: | ||
Earnings per share | $ 1.15 | $ 0.81 |
Weighted average shares | 87,431 | 87,750 |
Software licenses | ||
Revenue: | ||
Total revenue | $ 219,152 | $ 157,445 |
Cost of sales: | ||
Cost of sales: | 11,744 | 8,436 |
Maintenance and service | ||
Revenue: | ||
Total revenue | 290,295 | 267,632 |
Cost of sales: | ||
Cost of sales: | $ 36,290 | $ 39,072 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 100,622 | $ 70,988 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 13,284 | (22,092) |
Comprehensive income | $ 113,906 | $ 48,896 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 100,622 | $ 70,988 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and intangible assets amortization | 32,124 | 29,080 |
Operating lease right-of-use assets expense | 5,381 | 5,553 |
Deferred income tax benefit | (2,915) | (861) |
Provision for bad debts | (118) | 2,326 |
Stock-based compensation expense | 44,171 | 35,651 |
Other | 307 | 919 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 185,385 | 180,259 |
Other receivables and current assets | 68,991 | 43,479 |
Other long-term assets | (5,798) | (5,983) |
Accounts payable, accrued expenses and current liabilities | (135,365) | (143,883) |
Accrued income taxes | 1,481 | (1,119) |
Deferred revenue | (25,879) | 455 |
Other long-term liabilities | (7,621) | (5,928) |
Net cash provided by operating activities | 260,766 | 210,936 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (120,584) | (4,915) |
Capital expenditures | (6,892) | (5,062) |
Other investing activities | (914) | 13 |
Net cash used in investing activities | (128,390) | (9,964) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (196,494) | (155,571) |
Restricted stock withholding taxes paid in lieu of issued shares | (52,916) | (59,196) |
Proceeds from shares issued for stock-based compensation | 8,582 | 10,122 |
Net cash used in financing activities | (240,828) | (204,645) |
Effect of exchange rate fluctuations on cash and cash equivalents | 1,750 | (6,573) |
Net decrease in cash and cash equivalents | (106,702) | (10,246) |
Cash and cash equivalents, beginning of period | 614,391 | 667,667 |
Cash and cash equivalents, end of period | 507,689 | 657,421 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 7,650 | 3,566 |
Interest paid | 10,606 | 2,626 |
Fair value of non-cash consideration in connection with acquisitions | $ 5,056 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income |
Beginning balance at Dec. 31, 2021 | $ 4,484,048 | $ 953 | $ 1,465,694 | $ 4,259,220 | $ (1,185,707) | $ (56,112) |
Beginning balance, shares at Dec. 31, 2021 | 95,267 | 8,188 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares acquired | $ (155,571) | $ (155,571) | ||||
Treasury shares acquired, shares | 500 | 500 | ||||
Stock-based compensation activity | $ (13,422) | (50,287) | $ 36,865 | |||
Stock-based compensation activity, shares | (403) | |||||
Other comprehensive (loss) income | (22,092) | (22,092) | ||||
Net income | 70,988 | 70,988 | ||||
Ending balance at Mar. 31, 2022 | 4,363,951 | $ 953 | 1,415,407 | 4,330,208 | $ (1,304,413) | (78,204) |
Ending balance, shares at Mar. 31, 2022 | 95,267 | 8,285 | ||||
Beginning balance at Dec. 31, 2022 | 4,865,851 | $ 953 | 1,540,317 | 4,782,930 | $ (1,335,627) | (122,722) |
Beginning balance, shares at Dec. 31, 2022 | 95,267 | 8,317 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares acquired | $ (197,416) | $ (197,416) | ||||
Treasury shares acquired, shares | 650 | 650 | ||||
Stock-based compensation activity | $ (179) | (34,529) | $ 34,350 | |||
Stock-based compensation activity, shares | (356) | |||||
Other comprehensive (loss) income | 13,284 | 13,284 | ||||
Net income | 100,622 | 100,622 | ||||
Ending balance at Mar. 31, 2023 | $ 4,782,162 | $ 953 | $ 1,505,788 | $ 4,883,552 | $ (1,498,693) | $ (109,438) |
Ending balance, shares at Mar. 31, 2023 | 95,267 | 8,611 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ANSYS, Inc. (Ansys, we, us, our) develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia, including 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 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 | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information for commercial and industrial companies, the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Form 10-K). The condensed consolidated December 31, 2022 balance sheet presented is derived from the audited December 31, 2022 balance sheet included in the 2022 Form 10-K. In our opinion, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for any future period. Certain items in the notes to the condensed consolidated financial statements of prior years have been reclassified to conform to the current year's presentation. These reclassifications had no effect on reported net income, comprehensive income, cash flows, total assets or total liabilities and stockholders' equity. Accounting Guidance Issued and Not Yet Adopted Recently issued accounting pronouncements are not expected to have a material impact on our financial position, results of operations or cash flows upon adoption. Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market funds. Cash equivalents are carried at cost, which approximates fair value. Our cash and cash equivalents balances comprise the following: March 31, 2023 December 31, 2022 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 405,195 79.8 $ 503,733 82.0 Money market funds 102,494 20.2 110,658 18.0 Total $ 507,689 $ 614,391 Our money market fund balances are held in various funds of two issuers. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes revenue: Three Months Ended (in thousands, except percentages) March 31, March 31, Revenue: Subscription lease licenses $ 147,922 $ 91,457 Perpetual licenses 71,230 65,988 Software licenses 219,152 157,445 Maintenance 268,593 247,241 Service 21,702 20,391 Maintenance and service 290,295 267,632 Total revenue $ 509,447 $ 425,077 Direct revenue, as a percentage of total revenue 76.3 % 72.4 % Indirect revenue, as a percentage of total revenue 23.7 % 27.6 % Our software license revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract. The shift reflected above from indirect to direct revenue was driven primarily by our previously announced acquisition of DYNAmore, a channel partner that was formerly captured in our indirect business. 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 three months ended March 31, 2023 and 2022 were as follows: (in thousands) 2023 2022 Beginning balance – January 1 $ 435,758 $ 412,781 Acquired deferred revenue 6,555 84 Deferral of revenue 483,502 423,649 Recognition of revenue (509,447) (425,077) Currency translation 701 (6,317) Ending balance – March 31 $ 417,069 $ 405,120 Total revenue allocated to remaining performance obligations as of March 31, 2023 will be recognized as revenue as follows: (in thousands) Next 12 months $ 825,244 Months 13-24 345,708 Months 25-36 147,965 Thereafter 38,567 Total revenue allocated to remaining performance obligations $ 1,357,484 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the quarter ended March 31, 2023, we completed the acquisition of DYNAmore for a purchase price of $139.2 million, or $126.4 million net of cash acquired. The acquisition expands our position as a simulation solution provider within the automotive industry. The effects of the acquisition were not material to our condensed consolidated results of operations. During the three months ended March 31, 2023, we incurred acquisition-related expenses of $2.2 million. Acquisition-related expenses are recognized as selling, general and administrative and research and development expenses on the condensed consolidated statements of income. The assets acquired and liabilities assumed in connection with the acquisition have been recorded based upon management's estimates of the fair market value as of the date of acquisition. The following tables summarize the fair value of consideration and the fair value of identified assets acquired and liabilities assumed for the acquisition at the date of acquisition: Fair Value of Consideration: (in thousands) Cash $ 134,103 Non-cash consideration 5,056 Total consideration $ 139,159 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 12,779 Accounts receivable and other tangible assets 15,751 Developed software and core technologies 3,594 Customer lists 75,690 Trade names 2,220 Accounts payable and other liabilities (7,944) Deferred revenue (6,555) Net deferred tax liabilities (24,997) Total identifiable net assets $ 70,538 Goodwill $ 68,621 The goodwill, which is not tax-deductible, is attributed to intangible assets that do not qualify for separate recognition, including the assembled workforce of the acquired business and the synergies expected to arise as a result of the acquisition. The fair value of the assets acquired and liabilities assumed are based on preliminary calculations. The estimates and assumptions for these items are subject to change as additional information about what was known and knowable at the acquisition date is obtained during the measurement period (up to one year from the acquisition date). We determined the fair value of our intangible assets using various valuation techniques, including the relief-from-royalty method and the multi-period excess earnings method. These models utilize certain unobservable inputs classified as Level 3 measurements as defined by ASC 820, Fair Value Measurements and Disclosures . The determination of fair value requires considerable judgment and is sensitive to changes in underlying assumptions, estimates and market factors. Estimating fair value requires us to make assumptions and estimates regarding our future plans, as well as industry and economic conditions. These assumptions and estimates include, but are not limited to: selection of a valuation methodology, royalty rate, discount rate and attrition rate. The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 8 years Relief-from-royalty Royalty rate: 20.0% Discount rate: 15.5% Trade names 5 years Relief-from-royalty Royalty rate: 1.0% Discount rate: 15.5% Customer lists 14 years Multi-period excess earnings Attrition rate: 5.0% Discount rate: 15.5% 2022 Acquisitions During the year ended December 31, 2022, we completed several acquisitions to enhance our customers' experience. These acquisitions were not individually significant. The combined purchase price of these acquisitions during the year ended December 31, 2022 was $401.7 million, or $390.9 million net of cash acquired. The operating results of each acquisition have been included in our condensed consolidated financial statements since each respective date of acquisition. The effects of the acquisitions were not material to our condensed consolidated results of operations. |
Other Receivables and Current A
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | Other Receivables and Current Assets and Other Accrued Expenses and Liabilities Our other receivables and current assets and other accrued expenses and liabilities comprise the following balances: (in thousands) March 31, December 31, Receivables related to unrecognized revenue $ 144,602 $ 209,139 Income taxes receivable, including overpayments and refunds 14,458 28,963 Prepaid expenses and other current assets 63,399 51,159 Total other receivables and current assets $ 222,459 $ 289,261 Accrued vacation 46,285 39,118 Payroll-related accruals 38,255 20,716 Consumption, VAT and sales tax liabilities 15,754 41,812 Accrued expenses and other current liabilities 83,860 96,574 Total other accrued expenses and liabilities $ 184,154 $ 198,220 Receivables related to unrecognized revenue represent the current portion of billings made for customer contracts that have not yet been recognized as revenue. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (EPS) amounts are computed by dividing earnings by the weighted average number of common shares outstanding during the period. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive equivalents outstanding. To the extent stock awards are anti-dilutive, they are excluded from the calculation of diluted EPS. The details of basic and diluted EPS are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Net income $ 100,622 $ 70,988 Weighted average shares outstanding – basic 86,930 87,122 Dilutive effect of stock plans 501 628 Weighted average shares outstanding – diluted 87,431 87,750 Basic earnings per share $ 1.16 $ 0.81 Diluted earnings per share $ 1.15 $ 0.81 Anti-dilutive shares 650 65 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets are classified as follows: March 31, 2023 December 31, 2022 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 1,112,781 $ (501,164) $ 1,106,789 $ (483,033) Customer lists 278,702 (71,717) 205,484 (71,618) Trade names 189,005 (137,420) 186,424 (135,220) Total $ 1,580,488 $ (710,301) $ 1,498,697 $ (689,871) 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 March 31, 2023, estimated future amortization expense for the intangible assets reflected above was as follows: (in thousands) Remainder of 2023 $ 74,589 2024 105,244 2025 106,805 2026 108,672 2027 111,166 2028 107,841 Thereafter 255,870 Total intangible assets subject to amortization 870,187 Indefinite-lived trade name 357 Other intangible assets, net $ 870,544 The changes in goodwill during the three months ended March 31, 2023 and 2022 were as follows: (in thousands) 2023 2022 Beginning balance – January 1 $ 3,658,267 $ 3,409,271 Acquisitions and adjustments (1) 69,227 1,961 Currency translation 9,701 (11,335) Ending balance – March 31 $ 3,737,195 $ 3,399,897 (1) In accordance with the accounting for business combinations, we recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. During the first quarter of 2023, 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, 2023. No events or circumstances changed during the three months ended March 31, 2023 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 our borrowings. The following tables provide the assets carried at fair value and measured on a recurring basis: Fair Value Measurements at Reporting Date Using: (in thousands) March 31, Quoted Prices in Significant Other Significant Assets Cash equivalents $ 102,494 $ 102,494 $ — $ — Short-term investments $ 165 $ — $ 165 $ — Deferred compensation plan investments $ 1,634 $ 1,634 $ — $ — Equity securities $ 916 $ 916 $ — $ — 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 $ — $ — The cash equivalents in the preceding tables represent money market funds, valued at net asset value, with carrying values which approximate their fair values because of their short-term nature. The short-term investments in the preceding tables represent deposits held by certain foreign subsidiaries. The deposits have fixed interest rates with original maturities ranging from three months to one year. The deferred compensation plan investments in the preceding tables represent trading securities held in a rabbi trust for the benefit of non-employee directors. These securities consist of mutual funds traded in an active market with quoted prices. As a result, the plan assets are classified as Level 1 in the fair value hierarchy. The plan assets are recorded within other long-term assets on our condensed consolidated balance sheets. The equity securities represent our investment in a publicly traded company. These securities are traded in an active market with quoted prices. As a result, the securities are classified as Level 1 in the fair value hierarchy. The securities are recorded within other long-term assets on our condensed consolidated balance sheets. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Our right-of-use assets and lease liabilities primarily include operating leases for office space. Our executive offices and those related to certain domestic product development, marketing, production and administration are located in a 186,000 square foot office facility in Canonsburg, Pennsylvania. The term of the lease is 183 months, which began on October 1, 2014 and expires on December 31, 2029. The lease agreement includes options to renew the contract through August 2044, an option to lease additional space in January 2025 and an option to terminate the lease in December 2025. No options are included in the lease liability as renewal is not reasonably certain. In addition, we are reasonably certain we will not terminate the lease agreement. Absent the exercise of options in the lease, our remaining base rent (inclusive of property taxes and certain operating costs) is $4.5 million per annum through 2024 and $4.7 million per annum for 2025 - 2029. The components of our global lease cost reflected in the condensed consolidated statements of income are as follows: Three Months Ended (in thousands) March 31, March 31, Lease liability cost $ 7,041 $ 6,971 Variable lease cost not included in the lease liability (1) 1,183 1,084 Total lease cost $ 8,224 $ 8,055 (1) Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate. Other information related to operating leases is as follows: Three Months Ended (in thousands) March 31, March 31, Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (6,779) $ (7,018) Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,414 $ 16,318 As of March 31, 2023 2022 Weighted-average remaining lease term of operating leases 6.7 years 7.3 years Weighted-average discount rate of operating leases 3.2 % 2.9 % The maturity schedule of the operating lease liabilities as of March 31, 2023 is as follows: (in thousands) Remainder of 2023 $ 20,886 2024 25,316 2025 21,759 2026 19,415 2027 18,078 Thereafter 43,495 Total future lease payments 148,949 Less: Present value adjustment (15,100) Present value of future lease payments (1) $ 133,849 (1) Includes the current portion of operating lease liabilities of $23.6 million, which is reflected in other accrued expenses and liabilities in the condensed consolidated balance sheets. There were no material leases that have been signed but not yet commenced as of March 31, 2023. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
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. 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). The 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, the weighted average interest rate in effect for the three months ended March 31, 2023 was 5.56%. Under the prior credit agreements, the weighted average interest rate in effect for the three months ended March 31, 2022 was 1.35%. The rate in effect as of March 31, 2023 and for the second quarter of 2023 under the 2022 Credit Agreement is 5.87%. 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 March 31, 2023, we had $755.0 million of borrowings outstanding under the term loan, with a carrying value of $753.7 million, which is net of $1.3 million of unamortized debt discounts and issuance costs. The total amount was included in long-term debt. As of March 31, 2023, no borrowings were outstanding under the revolving loan facility. 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. We were in compliance with all covenants under the 2022 Credit Agreement as of March 31, 2023 and December 31, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income before income tax provision, income tax provision and effective tax rates were as follows: Three Months Ended (in thousands, except percentages) March 31, March 31, Income before income tax provision $ 120,838 $ 78,029 Income tax provision $ 20,216 $ 7,041 Effective tax rate 16.7 % 9.0 % |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2023 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Under our stock repurchase program, we repurchased shares as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Number of shares repurchased 650 500 Average price paid per share $ 302.34 $ 311.14 Total cost $ 196,494 $ 155,571 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Total stock-based compensation expense and its net impact on basic and diluted earnings per share are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Cost of sales: Maintenance and service $ 2,878 $ 2,563 Operating expenses: Selling, general and administrative 23,905 20,444 Research and development 17,388 12,644 Stock-based compensation expense before taxes 44,171 35,651 Related income tax benefits (18,186) (24,888) Stock-based compensation expense, net of taxes $ 25,985 $ 10,763 Net impact on earnings per share: Basic earnings per share $ (0.30) $ (0.12) Diluted earnings per share $ (0.30) $ (0.12) |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information | Geographic Information Revenue to external customers is attributed to individual countries based upon the location of the customer. Revenue by geographic area is as follows: Three Months Ended (in thousands) March 31, March 31, United States $ 246,707 $ 197,561 China 39,436 25,796 Germany 38,674 30,586 Japan 38,086 37,871 South Korea 21,864 21,940 Other Europe, Middle East and Africa (EMEA) 82,404 74,437 Other international 42,276 36,886 Total revenue $ 509,447 $ 425,077 Property and equipment by geographic area is as follows: (in thousands) March 31, December 31, United States $ 58,916 $ 58,258 India 5,769 5,978 EMEA 10,886 11,043 Other international 5,254 5,559 Total property and equipment, net $ 80,825 $ 80,838 |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2023 | |
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 $7.1 million. As such charges are not probable at this time, a reserve has not been recorded on the condensed consolidated balance sheet as of March 31, 2023. The service tax issues raised in our notices and inquiries are very similar to the case, M/s Microsoft Corporation (I) (P) Ltd. Vs. Commissioner of Service Tax, New Delhi, wherein the Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) issued a favorable ruling to Microsoft. The Microsoft ruling was subsequently challenged in the Supreme Court by the Indian tax authority and a decision is still pending. We can provide no assurances on the impact that the present Microsoft case's decision will have on our cases, however, an unfavorable ruling in the Microsoft case may impact our assessment of probability and result in the recording of a $7.1 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information for commercial and industrial companies, the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Form 10-K). The condensed consolidated December 31, 2022 balance sheet presented is derived from the audited December 31, 2022 balance sheet included in the 2022 Form 10-K. In our opinion, all adjustments considered necessary for a fair presentation of the financial statements have been included, and all adjustments are of a normal and recurring nature. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for any future period. Certain items in the notes to the condensed consolidated financial statements of prior years have been reclassified to conform to the current year's presentation. These reclassifications had no effect on reported net income, comprehensive income, cash flows, total assets or total liabilities and stockholders' equity. |
Accounting Guidance Issued and Not Yet Adopted | Accounting Guidance Issued and Not Yet AdoptedRecently issued accounting pronouncements are not expected to have a material impact on our financial position, results of operations or cash flows upon adoption. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market funds. Cash equivalents are carried at cost, which approximates fair value. Our cash and cash equivalents balances comprise the following: March 31, 2023 December 31, 2022 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 405,195 79.8 $ 503,733 82.0 Money market funds 102,494 20.2 110,658 18.0 Total $ 507,689 $ 614,391 Our money market fund balances are held in various funds of two issuers. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Our cash and cash equivalents balances comprise the following: March 31, 2023 December 31, 2022 (in thousands, except percentages) Amount % of Total Amount % of Total Cash accounts $ 405,195 79.8 $ 503,733 82.0 Money market funds 102,494 20.2 110,658 18.0 Total $ 507,689 $ 614,391 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue: Three Months Ended (in thousands, except percentages) March 31, March 31, Revenue: Subscription lease licenses $ 147,922 $ 91,457 Perpetual licenses 71,230 65,988 Software licenses 219,152 157,445 Maintenance 268,593 247,241 Service 21,702 20,391 Maintenance and service 290,295 267,632 Total revenue $ 509,447 $ 425,077 Direct revenue, as a percentage of total revenue 76.3 % 72.4 % Indirect revenue, as a percentage of total revenue 23.7 % 27.6 % |
Changes in Deferred Revenue | The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the three months ended March 31, 2023 and 2022 were as follows: (in thousands) 2023 2022 Beginning balance – January 1 $ 435,758 $ 412,781 Acquired deferred revenue 6,555 84 Deferral of revenue 483,502 423,649 Recognition of revenue (509,447) (425,077) Currency translation 701 (6,317) Ending balance – March 31 $ 417,069 $ 405,120 |
Remaining Performance Obligations, Expected Timing of Satisfaction | Total revenue allocated to remaining performance obligations as of March 31, 2023 will be recognized as revenue as follows: (in thousands) Next 12 months $ 825,244 Months 13-24 345,708 Months 25-36 147,965 Thereafter 38,567 Total revenue allocated to remaining performance obligations $ 1,357,484 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Fair Value of Consideration | The following tables summarize the fair value of consideration and the fair value of identified assets acquired and liabilities assumed for the acquisition at the date of acquisition: Fair Value of Consideration: (in thousands) Cash $ 134,103 Non-cash consideration 5,056 Total consideration $ 139,159 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: (in thousands) Cash $ 12,779 Accounts receivable and other tangible assets 15,751 Developed software and core technologies 3,594 Customer lists 75,690 Trade names 2,220 Accounts payable and other liabilities (7,944) Deferred revenue (6,555) Net deferred tax liabilities (24,997) Total identifiable net assets $ 70,538 Goodwill $ 68,621 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The weighted-average useful life, valuation method and assumptions used to determine the fair value of the intangible assets acquired are as follows: Intangible Asset Weighted-Average Useful Life Valuation Method Assumptions Developed software and core technologies 8 years Relief-from-royalty Royalty rate: 20.0% Discount rate: 15.5% Trade names 5 years Relief-from-royalty Royalty rate: 1.0% Discount rate: 15.5% Customer lists 14 years Multi-period excess earnings Attrition rate: 5.0% Discount rate: 15.5% |
Other Receivables and Current_2
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | |
Schedule of Other Receivables and Current Assets and Other Accrued Expenses and Liabilities | Our other receivables and current assets and other accrued expenses and liabilities comprise the following balances: (in thousands) March 31, December 31, Receivables related to unrecognized revenue $ 144,602 $ 209,139 Income taxes receivable, including overpayments and refunds 14,458 28,963 Prepaid expenses and other current assets 63,399 51,159 Total other receivables and current assets $ 222,459 $ 289,261 Accrued vacation 46,285 39,118 Payroll-related accruals 38,255 20,716 Consumption, VAT and sales tax liabilities 15,754 41,812 Accrued expenses and other current liabilities 83,860 96,574 Total other accrued expenses and liabilities $ 184,154 $ 198,220 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Details of Basic and Diluted EPS | The details of basic and diluted EPS are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Net income $ 100,622 $ 70,988 Weighted average shares outstanding – basic 86,930 87,122 Dilutive effect of stock plans 501 628 Weighted average shares outstanding – diluted 87,431 87,750 Basic earnings per share $ 1.16 $ 0.81 Diluted earnings per share $ 1.15 $ 0.81 Anti-dilutive shares 650 65 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets (Indefinite-Lived) | Intangible assets are classified as follows: March 31, 2023 December 31, 2022 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 1,112,781 $ (501,164) $ 1,106,789 $ (483,033) Customer lists 278,702 (71,717) 205,484 (71,618) Trade names 189,005 (137,420) 186,424 (135,220) Total $ 1,580,488 $ (710,301) $ 1,498,697 $ (689,871) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Intangible Assets (Finite-Lived) | Intangible assets are classified as follows: March 31, 2023 December 31, 2022 (in thousands) Gross Accumulated Gross Accumulated Finite-lived intangible assets: Developed software and core technologies $ 1,112,781 $ (501,164) $ 1,106,789 $ (483,033) Customer lists 278,702 (71,717) 205,484 (71,618) Trade names 189,005 (137,420) 186,424 (135,220) Total $ 1,580,488 $ (710,301) $ 1,498,697 $ (689,871) Indefinite-lived intangible asset: Trade name $ 357 $ 357 |
Estimated Future Amortization Expense for Intangible Assets | As of March 31, 2023, estimated future amortization expense for the intangible assets reflected above was as follows: (in thousands) Remainder of 2023 $ 74,589 2024 105,244 2025 106,805 2026 108,672 2027 111,166 2028 107,841 Thereafter 255,870 Total intangible assets subject to amortization 870,187 Indefinite-lived trade name 357 Other intangible assets, net $ 870,544 |
Changes in Goodwill | The changes in goodwill during the three months ended March 31, 2023 and 2022 were as follows: (in thousands) 2023 2022 Beginning balance – January 1 $ 3,658,267 $ 3,409,271 Acquisitions and adjustments (1) 69,227 1,961 Currency translation 9,701 (11,335) Ending balance – March 31 $ 3,737,195 $ 3,399,897 (1) In accordance with the accounting for business combinations, we recorded adjustments to goodwill for the effect of changes in the provisional fair values of the assets acquired and liabilities assumed during the measurement period (up to one year from the acquisition date) as we obtained new information about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, Quoted Prices in Significant Other Significant Assets Cash equivalents $ 102,494 $ 102,494 $ — $ — Short-term investments $ 165 $ — $ 165 $ — Deferred compensation plan investments $ 1,634 $ 1,634 $ — $ — Equity securities $ 916 $ 916 $ — $ — 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 $ — $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of our global lease cost reflected in the condensed consolidated statements of income are as follows: Three Months Ended (in thousands) March 31, March 31, Lease liability cost $ 7,041 $ 6,971 Variable lease cost not included in the lease liability (1) 1,183 1,084 Total lease cost $ 8,224 $ 8,055 (1) Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate. |
Lessee, Operating Lease Other Information | Other information related to operating leases is as follows: Three Months Ended (in thousands) March 31, March 31, Cash paid for amounts included in the measurement of the lease liability: Operating cash flows from operating leases $ (6,779) $ (7,018) Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,414 $ 16,318 As of March 31, 2023 2022 Weighted-average remaining lease term of operating leases 6.7 years 7.3 years Weighted-average discount rate of operating leases 3.2 % 2.9 % |
Schedule of Maturity of Operating Lease Liabilities | The maturity schedule of the operating lease liabilities as of March 31, 2023 is as follows: (in thousands) Remainder of 2023 $ 20,886 2024 25,316 2025 21,759 2026 19,415 2027 18,078 Thereafter 43,495 Total future lease payments 148,949 Less: Present value adjustment (15,100) Present value of future lease payments (1) $ 133,849 (1) Includes the current portion of operating lease liabilities of $23.6 million, which is reflected in other accrued expenses and liabilities in the condensed consolidated balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | Our income before income tax provision, income tax provision and effective tax rates were as follows: Three Months Ended (in thousands, except percentages) March 31, March 31, Income before income tax provision $ 120,838 $ 78,029 Income tax provision $ 20,216 $ 7,041 Effective tax rate 16.7 % 9.0 % |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Class of Stock Disclosures [Abstract] | |
Stock Repurchase Program | Under our stock repurchase program, we repurchased shares as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Number of shares repurchased 650 500 Average price paid per share $ 302.34 $ 311.14 Total cost $ 196,494 $ 155,571 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense and Its Net Impact on Basic and Diluted Earnings Per Share | Total stock-based compensation expense and its net impact on basic and diluted earnings per share are as follows: Three Months Ended (in thousands, except per share data) March 31, March 31, Cost of sales: Maintenance and service $ 2,878 $ 2,563 Operating expenses: Selling, general and administrative 23,905 20,444 Research and development 17,388 12,644 Stock-based compensation expense before taxes 44,171 35,651 Related income tax benefits (18,186) (24,888) Stock-based compensation expense, net of taxes $ 25,985 $ 10,763 Net impact on earnings per share: Basic earnings per share $ (0.30) $ (0.12) Diluted earnings per share $ (0.30) $ (0.12) |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
Revenue by Geographic Area | Revenue by geographic area is as follows: Three Months Ended (in thousands) March 31, March 31, United States $ 246,707 $ 197,561 China 39,436 25,796 Germany 38,674 30,586 Japan 38,086 37,871 South Korea 21,864 21,940 Other Europe, Middle East and Africa (EMEA) 82,404 74,437 Other international 42,276 36,886 Total revenue $ 509,447 $ 425,077 |
Property and Equipment by Geographic Area | Property and equipment by geographic area is as follows: (in thousands) March 31, December 31, United States $ 58,916 $ 58,258 India 5,769 5,978 EMEA 10,886 11,043 Other international 5,254 5,559 Total property and equipment, net $ 80,825 $ 80,838 |
Organization (Detail)
Organization (Detail) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Accounting Policies - Cash and
Accounting Policies - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Cash accounts, Amount | $ 405,195 | $ 503,733 |
Money market funds, Amount | 102,494 | 110,658 |
Total | $ 507,689 | $ 614,391 |
Cash | ||
Percent Of Cash And Cash Equivalents | 79.80% | 82% |
Money Market Funds | ||
Percent Of Cash And Cash Equivalents | 20.20% | 18% |
Money Market Funds | Money Market Fund Benchmark | Money Market Fund Concentration Risk | ||
Concentration risk, percentage | 100% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Amount of revenue recognized from beginning deferred revenue and backlog | $ 317.6 | $ 244.6 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 509,447 | $ 425,077 |
Direct revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 76.30% | 72.40% |
Indirect revenue, as a percentage of total revenue | Revenue Benchmark | Sales Channel Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 23.70% | 27.60% |
Subscription lease licenses | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 147,922 | $ 91,457 |
Perpetual licenses | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 71,230 | 65,988 |
Software licenses | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 219,152 | 157,445 |
Maintenance | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 268,593 | 247,241 |
Service | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 21,702 | 20,391 |
Maintenance and service | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 290,295 | $ 267,632 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Changes in Deferred Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning balance | $ 435,758 | $ 412,781 |
Acquired deferred revenue | 6,555 | 84 |
Deferral of revenue | 483,502 | 423,649 |
Recognition of revenue | (509,447) | (425,077) |
Currency translation | 701 | (6,317) |
Ending balance | $ 417,069 | $ 405,120 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations, Expected Timing of Satisfaction (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1,357,484 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 825,244 |
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]: 2024-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 345,708 |
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]: 2025-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 147,965 |
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]: 2026-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 38,567 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Total consideration | $ 139,200 | $ 401,700 | |
Payments to acquire businesses, net of cash acquired | 120,584 | $ 4,915 | |
Acquisition-related expenses | 2,200 | ||
Series of Individually Immaterial Business Acquisitions | |||
Total consideration | 139,159 | ||
Payments to acquire businesses, net of cash acquired | $ 126,400 | $ 390,900 |
Acquisitions - Fair Value of Co
Acquisitions - Fair Value of Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Total consideration | $ 139,200 | $ 401,700 |
Series of Individually Immaterial Business Acquisitions | ||
Cash | 134,103 | |
Non-cash consideration | 5,056 | |
Total consideration | $ 139,159 |
Acquisitions - Recognized Amoun
Acquisitions - Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed (Details) - Series of Individually Immaterial Business Acquisitions $ in Thousands | Mar. 31, 2023 USD ($) |
Cash | $ 12,779 |
Accounts receivable and other tangible assets | 15,751 |
Accounts payable and other liabilities | (7,944) |
Deferred revenue | (6,555) |
Net deferred tax liabilities | (24,997) |
Total identifiable net assets | 70,538 |
Goodwill | 68,621 |
Developed software and core technologies | |
Finite-lived intangible assets | 3,594 |
Customer lists | |
Finite-lived intangible assets | 75,690 |
Trade names | |
Finite-lived intangible assets | $ 2,220 |
Acquisitions - Valuation Assump
Acquisitions - Valuation Assumptions and Weighted-Average Useful Life (Details) - Series of Individually Immaterial Business Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Developed software and core technologies | |
Finite-lived intangible asset, useful life | 8 years |
Royalty Rate | 20% |
Discount Rate | 15.50% |
Customer lists | |
Finite-lived intangible asset, useful life | 14 years |
Discount Rate | 15.50% |
Attrition Rate | 5% |
Trade names | |
Finite-lived intangible asset, useful life | 5 years |
Royalty Rate | 1% |
Discount Rate | 15.50% |
Other Receivables and Current_3
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Receivables and Current Assets and Other Accrued Expenses and Liabilities [Abstract] | ||
Receivables related to unrecognized revenue | $ 144,602 | $ 209,139 |
Income taxes receivable, including overpayments and refunds | 14,458 | 28,963 |
Prepaid expenses and other current assets | 63,399 | 51,159 |
Total other receivables and current assets | 222,459 | 289,261 |
Accrued vacation | 46,285 | 39,118 |
Payroll-related accruals | 38,255 | 20,716 |
Consumption, VAT and sales tax liabilities | 15,754 | 41,812 |
Accrued expenses and other current liabilities | 83,860 | 96,574 |
Total other accrued expenses and liabilities | $ 184,154 | $ 198,220 |
Earnings Per Share - Details of
Earnings Per Share - Details of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 100,622 | $ 70,988 |
Weighted average shares outstanding – basic | 86,930 | 87,122 |
Dilutive effect of stock plans | 501 | 628 |
Weighted average shares outstanding – diluted | 87,431 | 87,750 |
Basic earnings per share | $ 1.16 | $ 0.81 |
Diluted earnings per share | $ 1.15 | $ 0.81 |
Anti-dilutive shares | 650 | 65 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Finite-lived intangible asset, useful life | 2 years |
Maximum | |
Finite-lived intangible asset, useful life | 17 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 1,580,488 | $ 1,498,697 |
Amortized intangible assets, accumulated amortization | (710,301) | (689,871) |
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 | 1,112,781 | 1,106,789 |
Amortized intangible assets, accumulated amortization | (501,164) | (483,033) |
Customer lists | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 278,702 | 205,484 |
Amortized intangible assets, accumulated amortization | (71,717) | (71,618) |
Trade names | ||
Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 189,005 | 186,424 |
Amortized intangible assets, accumulated amortization | $ (137,420) | $ (135,220) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 74,589 | |
2024 | 105,244 | |
2025 | 106,805 | |
2026 | 108,672 | |
2027 | 111,166 | |
2028 | 107,841 | |
Thereafter | 255,870 | |
Total intangible assets subject to amortization | 870,187 | |
Indefinite-lived trade name | 357 | |
Other intangible assets, net | $ 870,544 | $ 809,183 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 3,658,267 | $ 3,409,271 |
Acquisitions and adjustments | 69,227 | 1,961 |
Currency translation | 9,701 | (11,335) |
Ending balance | $ 3,737,195 | $ 3,399,897 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 102,494 | $ 110,658 |
Short-term investments | 165 | 183 |
Deferred compensation plan investments | 1,634 | 1,618 |
Equity securities | 916 | 892 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 102,494 | 110,658 |
Short-term investments | 0 | 0 |
Deferred compensation plan investments | 1,634 | 1,618 |
Equity securities | 916 | 892 |
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 | 165 | 183 |
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 (Detail) | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments maturity | 3 months |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments maturity | 1 year |
Leases - Additional Information
Leases - Additional Information (Detail) - Canonsburg Office, New Company Headquarters $ in Millions | Mar. 31, 2023 USD ($) ft² |
Lessee, Lease, Description [Line Items] | |
Area of real estate property | ft² | 186,000 |
Period of leased property | 183 months |
Base rent through 2024 | $ 4.5 |
Base rent 2025-2029 | $ 4.7 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Lease liability cost | $ 7,041 | $ 6,971 |
Variable lease cost not included in the lease liability | 1,183 | 1,084 |
Total lease cost | $ 8,224 | $ 8,055 |
Leases - Lessee, Operating Leas
Leases - Lessee, Operating Lease Other Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ (6,779) | $ (7,018) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 4,414 | $ 16,318 |
Weighted-average remaining lease term of operating leases | 6 years 8 months 12 days | 7 years 3 months 18 days |
Weighted-average discount rate of operating leases | 3.20% | 2.90% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 20,886 |
2024 | 25,316 |
2025 | 21,759 |
2026 | 19,415 |
2027 | 18,078 |
Thereafter | 43,495 |
Total future lease payments | 148,949 |
Less: Present value adjustment | (15,100) |
Present value of future lease payments | 133,849 |
Current portion of operating lease liabilities | $ 23,600 |
Debt (Detail)
Debt (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Disclosure [Line Items] | |||
Long-term debt, gross value | $ 755,000,000 | $ 755,000,000 | |
Weighted-average interest rate over time | 5.56% | 1.35% | |
Weighted-average interest rate at point in time | 5.87% | ||
Consolidated leverage ratio | 3.50 | ||
Consolidated leverage ratio increased | 4 | ||
Qualified acquisition amount | $ 250,000,000 | ||
Unsecured Long-Term Debt, Noncurrent | 753,700,000 | 753,600,000 | |
Unamortized debt discount and issuance costs | 1,300,000 | 1,400,000 | |
Revolving credit facility | |||
Debt Disclosure [Line Items] | |||
Line of credit, maximum borrowing capacity | 500,000,000 | ||
Foreign currency borrowings sublimit | 150,000,000 | ||
Outstanding borrowings under the credit agreement | 0 | $ 0 | |
Letters of credit | |||
Debt Disclosure [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||
Base rate | |||
Debt Disclosure [Line Items] | |||
Debt instrument, basis spread overnight bank funding rate | 0.50% | ||
Debt instrument, basis spread on SOFR rate | 1% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income before income tax provision | $ 120,838 | $ 78,029 |
Income tax provision | $ 20,216 | $ 7,041 |
Effective tax rate | 16.70% | 9% |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock Disclosures [Abstract] | ||
Number of shares repurchased | 650 | 500 |
Average price paid per share | $ 302.34 | $ 311.14 |
Purchase of treasury stock | $ 196,494 | $ 155,571 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) shares in Millions | Mar. 31, 2023 shares |
Class of Stock Disclosures [Abstract] | |
Stock repurchase program, remaining number of shares authorized to be repurchased | 1.1 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense and Its Net Impact on Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | $ 44,171 | $ 35,651 |
Related income tax benefits | (18,186) | (24,888) |
Stock-based compensation expense, net of taxes | $ 25,985 | $ 10,763 |
Basic earnings per share | $ (0.30) | $ (0.12) |
Diluted earnings per share | $ (0.30) | $ (0.12) |
Maintenance and service | ||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | $ 2,878 | $ 2,563 |
Selling, general and administrative | ||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | 23,905 | 20,444 |
Research and development | ||
Employee Service Share-Based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense before taxes | $ 17,388 | $ 12,644 |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 509,447 | $ 425,077 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 246,707 | 197,561 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 39,436 | 25,796 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 38,674 | 30,586 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 38,086 | 37,871 |
South Korea | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 21,864 | 21,940 |
Other Europe, Middle East and Africa (EMEA) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 82,404 | 74,437 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 42,276 | $ 36,886 |
Geographic Information - Proper
Geographic Information - Property and Equipment by Geographic Area (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 80,825 | $ 80,838 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 58,916 | 58,258 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 5,769 | 5,978 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 10,886 | 11,043 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 5,254 | $ 5,559 |
Contingencies and Commitments (
Contingencies and Commitments (Detail) $ in Millions | Mar. 31, 2023 USD ($) |
India Service Tax Audit | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 7.1 |