Leases

Office Space

The Company's 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 lease was effective as of September 14, 2012, but because the leased premises were under construction, the Company was not obligated to pay rent until three months following the date that the leased premises were delivered to ANSYS, which occurred on October 1, 2014. The term of the lease is 183 months, beginning on October 1, 2014. Absent the exercise of options in the lease for additional rentable space or early lease termination, the Company's base rent (inclusive of property taxes and certain operating expenses) will be $4.3 million per annum for the first five years of the lease term, $4.5 million per annum for years six through ten and $4.7 million per annum for years eleven through fifteen. The Company incurred $4.4 million and $0.8 million in lease expense related to this facility during the years ended December 31, 2015 and 2014, respectively.

The Company's corporate headquarters was previously located in a separate office facility, also in Canonsburg, Pennsylvania. The Company occupied this space until November 2014, and the lease term expired on December 31, 2014. Lease expense related to this facility was $1.4 million in each of the years ended December 31, 2014 and 2013.

The Company has entered into various other noncancellable operating leases for office space.

Office space lease expense totaled $16.5 million, $15.8 million and $14.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum lease payments, including termination fees, under noncancellable operating leases for office space in effect at December 31, 2015 are as follows:



(in thousands)	Total		2016		2017		2018		2019		2020		Thereafter
Future minimum lease payments	$	71,887	$	13,800	$	10,449	$	7,834	$	7,043	$	6,195	$	26,566

Sale-Leaseback Arrangement

The lease agreement terms for the new Canonsburg headquarters facility provide that the Company was responsible for paying the cost of certain tenant improvements that exceeded an allowance to be paid by the landlord. There was no cap to the Company's obligation in excess of the landlord allowance. As a result, the Company was considered the owner of the building during the construction period and the lease was subject to sale-leaseback treatment.

The building was completed and delivered to the Company on October 1, 2014. The Company determined that the lease does not meet the criteria for capital lease treatment under the accounting guidance, and the Company does not have continuing involvement in the lease. As a result, the construction-in-progress asset and liability were removed from the consolidated balance sheets. The sale-leaseback treatment of the lease during the construction period did not have any impact on the Company's results of operations or cash flows.