Stock-Based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] |
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| Stock-Based Compensation Expense |
Total stock-based compensation expense recognized for the years ended December 31, 2024, 2023 and 2022 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | (in thousands, except per share amounts) | | 2024 | | 2023 | | 2022 | | Cost of sales: | | | | | | | | Maintenance and service | | 14,313 | | | 13,337 | | | 10,073 | | | Operating expenses: | | | | | | | | Selling, general and administrative | | 161,905 | | | 126,175 | | | 93,117 | | | Research and development | | 94,682 | | | 82,379 | | | 64,938 | | | Stock-based compensation expense before taxes | | 270,900 | | | 221,891 | | | 168,128 | | | Related income tax benefits | | (65,647) | | | (53,880) | | | (50,209) | | | Stock-based compensation expense, net of taxes | | $ | 205,253 | | | $ | 168,011 | | | $ | 117,919 | | | | | | | | | | | | | | | | | | | | | | |
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| Summary of Stock Options |
Information regarding stock option transactions is summarized below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | 2024 | | 2023 | | 2022 | | (options in thousands) | | Options | | Weighted-
Average
Exercise
Price | | Options | | Weighted-
Average
Exercise
Price | | Options | | Weighted-
Average
Exercise
Price | | Outstanding, beginning of year | | 103 | | | $ | 94.23 | | | 226 | | | $ | 94.24 | | | 375 | | | $ | 83.67 | | | Granted | | — | | | $ | — | | | — | | | $ | — | | | — | | | $ | — | | | Exercised | | (1) | | | $ | 86.57 | | | (123) | | | $ | 94.32 | | | (148) | | | $ | 67.56 | | | Forfeited | | (2) | | | $ | 86.01 | | | — | | | $ | — | | | (1) | | | $ | 67.44 | | | Outstanding, end of year | | 100 | | | $ | 94.46 | | | 103 | | | $ | 94.23 | | | 226 | | | $ | 94.24 | | | Vested and Exercisable, end of year | | 100 | | | $ | 94.46 | | | 103 | | | $ | 94.23 | | | 226 | | | $ | 94.24 | | | Nonvested | | — | | | $ | — | | | — | | | $ | — | | | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | 2024 | | 2023 | | 2022 | Weighted Average Remaining Contractual Term (in years) | | | | | | | | Outstanding | | 1.59 | | 2.52 | | 3.53 | | Vested and Exercisable | | 1.59 | | 2.52 | | 3.53 | Aggregate Intrinsic Value (in thousands) | | | | | | | | Exercised | | $ | 83 | | | $ | 28,231 | | | $ | 30,358 | | | Outstanding | | $ | 24,370 | | | $ | 27,717 | | | $ | 33,361 | | | Vested and Exercisable | | $ | 24,370 | | | $ | 27,717 | | | $ | 33,361 | | Compensation Expense - Stock Options (in thousands) | | $ | — | | | $ | — | | | $ | — | |
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| 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 | Prior to March 2023, one third of the awards vested annually. Commencing in March 2023, one third vests in the first year and then one eighth quarterly thereafter. | | 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. | | Board of Director restricted stock unit awards | The earlier of one year or the next regular meeting of stockholders | Continued service on the Board of Directors through the vesting period. Directors that retire prior to the vest date receive a pro-rata portion of the RSUs. |
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| Summary of Restricted Stock Units |
Information regarding all employee and non-employee director RSU transactions is summarized below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | 2024 | | 2023 | | 2022 | | (RSUs in thousands) | | RSUs | | Weighted-
Average
Grant Date Fair Value | | RSUs | | Weighted-
Average
Grant Date Fair Value | | RSUs | | Weighted-
Average
Grant Date Fair Value | | Nonvested, beginning of year | | 1,538 | | | $ | 309.33 | | | 1,220 | | | $ | 301.72 | | | 1,074 | | | $ | 278.02 | | Granted(1) | | 948 | | | $ | 339.43 | | | 867 | | | $ | 314.04 | | | 861 | | | $ | 299.08 | | Performance adjustment - awards with market condition(2) | | (20) | | | $ | 285.28 | | | (11) | | | $ | 279.42 | | | (8) | | | $ | 276.73 | | Performance adjustment - awards with performance condition(2) | | 59 | | | $ | 339.62 | | | 79 | | | $ | 310.37 | | | 73 | | | $ | 300.28 | | | Vested | | (894) | | | $ | 310.84 | | | (558) | | | $ | 300.30 | | | (598) | | | $ | 257.51 | | | Forfeited | | (76) | | | $ | 322.38 | | | (59) | | | $ | 313.58 | | | (182) | | | $ | 295.13 | | | Nonvested, end of year | | 1,555 | | | $ | 327.62 | | | 1,538 | | | $ | 309.33 | | | 1,220 | | | $ | 301.72 | |
(1) Includes all RSUs granted during the year. RSUs with operating performance conditions 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.
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| Employee Stock Option |
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| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] |
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| Information Regarding Stock Options Outstanding |
Information regarding stock options outstanding as of December 31, 2024 is summarized below: | | | | | | | | | | | | | | | | | | (options in thousands) | | Options Outstanding & Exercisable | | Exercise Price | | Options | | Weighted-
Average
Remaining
Contractual
Life (years) | | | | $86.57 | | 7 | | | 0.67 | | | | $94.15 | | 1 | | | 0.58 | | | | $95.09 | | 92 | | | 1.67 | | |
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| Restricted Stock Units (RSUs) |
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| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] |
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| 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. Due to the pending merger with Synopsys, there were no RSUs with a market condition issued in 2024. | | | | | | | | | | | | | Year Ended December 31, | | Assumptions used in Monte Carlo lattice pricing model | 2023 | | 2022 | | Risk-free interest rate | 4.6% | | 1.8% | | Expected dividend yield | —% | | —% | | Expected volatility—Ansys stock price | 36% | | 37% | | Expected volatility—Nasdaq Composite Index | 25% | | 26% | | Expected term | 2.8 years | | 2.8 years | | Correlation factor | 0.83 | | 0.84 | | Weighted average fair value per share | $452.14 | | $290.65 |
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