Stock-Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based CompensationOn 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 are no longer made under the Predecessor Plan.

Total stock-based compensation expense and its net impact on basic and diluted earnings per share are as follows:

	Three Months Ended				Six Months Ended
(in thousands, except per share data)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Cost of sales:
Maintenance and service	$	3,519	$	3,464	$	7,081	$	6,330
Operating expenses:
Selling, general and administrative	23,515		16,319		40,738		31,463
Research and development	15,851		14,347		30,185		27,278
Stock-based compensation expense before taxes	42,885		34,130		78,004		65,071
Related income tax benefits	(8,783)		(10,883)		(51,408)		(36,789)
Stock-based compensation expense, net of taxes	$	34,102	$	23,247	$	26,596	$	28,282
Net impact on earnings per share:
Basic earnings per share	$	(0.39)	$	(0.27)	$	(0.31)	$	(0.33)
Diluted earnings per share	$	(0.39)	$	(0.27)	$	(0.30)	$	(0.32)