View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2010	Jul. 30, 2010
Statement [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q2
Trading Symbol	anss
Entity Registrant Name	ANSYS INC
Entity Central Index Key	0001013462
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		90,894,908

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	$ 415,488	$ 335,878
Short-term investments	1,097	7,966
Accounts receivable, less allowance for doubtful accounts of $4,282 and $4,418, respectively	63,522	67,084
Other receivables and current assets	81,730	86,735
Deferred income taxes	16,905	17,827
Total current assets	578,742	515,490
Property and equipment, net	33,565	35,131
Goodwill	1,034,738	1,038,824
Other intangible assets, net	295,886	322,313
Other long-term assets	5,253	5,848
Deferred income taxes	5,366	2,576
Total assets	1,953,550	1,920,182
Current liabilities:
Current portion of long-term debt and capital lease obligations	21,436	26,758
Accounts payable	3,767	2,426
Accrued bonuses and commissions	18,428	23,162
Accrued income taxes	11,052	12,262
Deferred income taxes	31	143
Other accrued expenses and liabilities	28,143	32,740
Deferred revenue	190,410	169,275
Total current liabilities	273,267	266,766
Long-term liabilities:
Long-term debt and capital lease obligations, less current portion	148,839	198,668
Deferred income taxes	95,154	107,313
Other long-term liabilities	33,740	34,804
Total long-term liabilities	$ 277,733	$ 340,785
Commitments and contingencies	0	0
Stockholders' equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; 0 issued and 0 outstanding	$ 0	$ 0
Common stock, $.01 par value; 150,000,000 shares authorized; 90,759,890 and 89,716,317 shares issued, respectively	908	897
Additional paid-in capital	828,011	801,574
Retained earnings	570,063	502,201
Treasury stock, at cost: 0 and 40,678 shares, respectively	0	(853)
Accumulated other comprehensive income	3,568	8,812
Total stockholders' equity	1,402,550	1,312,631
Total liabilities and stockholders' equity	$ 1,953,550	$ 1,920,182

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Accounts receivable, allowance for doubtful accounts	$ 4,282	$ 4,418
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	90,759,890	89,716,317
Treasury stock, shares	0	40,678

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Revenue:
Software licenses	$ 81,744	$ 73,136	$ 163,330	$ 143,625
Maintenance and service	56,023	48,890	110,490	94,711
Total revenue	137,767	122,026	273,820	238,336
Cost of sales:
Software licenses	2,310	2,366	4,919	4,666
Amortization of software and acquired technology	8,178	9,001	16,392	17,997
Maintenance and service	13,652	12,193	27,482	24,525
Restructuring charges	0	498	0	498
Total cost of sales	24,140	24,058	48,793	47,686
Gross profit	113,627	97,968	225,027	190,650
Operating expenses:
Selling, general and administrative	35,979	32,570	71,207	66,395
Research and development	21,390	19,909	43,977	39,939
Amortization	3,875	4,021	7,837	8,019
Restructuring charges	0	808	0	808
Total operating expenses	61,244	57,308	123,021	115,161
Operating income	52,383	40,660	102,006	75,489
Interest expense	(1,245)	(2,941)	(2,794)	(6,218)
Interest income	422	360	790	929
Other income (expense), net	139	(817)	(368)	(1,305)
Income before income tax provision	51,699	37,262	99,634	68,895
Income tax provision	16,206	10,125	31,772	20,663
Net income	$ 35,493	$ 27,137	$ 67,862	$ 48,232
Earnings per share - basic:
Basic earnings per share	$ 0.39	$ 0.31	$ 0.75	$ 0.55
Weighted average shares - basic	90,614	87,726	90,289	88,296
Earnings per share - diluted:
Diluted earnings per share	$ 0.38	$ 0.3	$ 0.73	$ 0.53
Weighted average shares - diluted	93,146	91,048	92,960	91,612

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009
Cash flows from operating activities:
Net income	$ 67,862	$ 48,232
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	30,265	31,784
Deferred income tax benefit	(11,895)	(15,849)
Provision for bad debts	924	926
Stock-based compensation expense	9,160	6,120
Excess tax benefits from stock options	(6,553)	(1,824)
Other	37	213
Changes in operating assets and liabilities:
Accounts receivable	246	10,145
Other receivables and current assets	2,437	19,064
Other long-term assets	3	1,292
Accounts payable, accrued expenses and current liabilities	1,886	(18,283)
Deferred revenue	26,752	14,839
Other long-term liabilities	(1,238)	(1,969)
Net cash provided by operating activities	119,886	94,690
Cash flows from investing activities:
Capital expenditures	(4,419)	(4,511)
Purchases of short-term investments	(959)	(2,209)
Maturities of short-term investments	7,883	5,212
Other	0	(12)
Net cash provided by (used in) investing activities	2,505	(1,520)
Cash flows from financing activities:
Principal payments on long-term debt	(55,000)	(40,684)
Principal payments on capital leases	(153)	(182)
Purchase of treasury stock	0	(39,904)
Proceeds from issuance of common stock under Employee Stock Purchase Plan	628	700
Proceeds from exercise of stock options	11,221	3,323
Excess tax benefits from stock options	6,553	1,824
Net cash used in financing activities	(36,751)	(74,923)
Effect of exchange rate fluctuations on cash and cash equivalents	(6,030)	5,280
Net increase in cash and cash equivalents	79,610	23,527
Cash and cash equivalents, beginning of period	335,878	228,176
Cash and cash equivalents, end of period	415,488	251,703
Supplemental disclosures of cash flow information:
Income taxes paid	35,671	28,069
Interest paid	$ 1,976	$ 5,211

Accounting Policies	6 Months Ended
Accounting Policies	Jun. 30, 2010
Statement [Line Items]
Accounting Policies	div table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd valign="top" width="4%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"b2./b/font/td td valign="top" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"bAccounting Policies /b/font/td/tr/table p style="margin-top: 6px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"bBasis of Presentation /b/font/p p style="margin-top: 6px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"The accompanying unaudited condensed consolidated financial statements have been prepared by ANSYS in accordance with accounting principles generally accepted in the United States for interim financial information for commercial and industrial companies and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the accompanying 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 condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements (and notes thereto) included in the Company's Annual Report on Form 10-K for the year ended Decembernbsp;31, 2009. The condensed consolidated Decembernbsp;31, 2009 balance sheet presented is derived from the audited Decembernbsp;31, 2009 balance sheet included in the most recent Annual Report on Form 10-K. In the opinion of management, 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 and six months ended Junenbsp;30, 2010 are not necessarily indicative of the results that may be expected for any future period. /font/p p style="margin-top: 0px; margin-bottom: 0px;"font class="_mt" size="1" /fontnbsp;/p p style="margin-top: 0px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"bCash and Cash Equivalents /b/font/p p style="margin-top: 6px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"Cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market mutual funds. Cash equivalents are carried at cost, which approximates fair value. The Company's cash and cash equivalents balances are comprised of the following: /font/p p style="margin-top: 0px; margin-bottom: 0px; font-size: 12px;"nbsp;/p table border="0" cellspacing="0" cellpadding="0" width="92%" trtd width="66%" /td td valign="bottom" width="4%" /td td /td td /td td valign="bottom" width="4%" /td td /td td valign="bottom" width="4%" /td td /td td /td td valign="bottom" width="4%" /td td /td td /td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="4" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bJunenbsp;30, 2010/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="4" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bDecembernbsp;31, 2009/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td/tr trtd valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="1"bifont style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;nbsp;nbsp;/fontfont style="font-family: Times New Roman;" class="_mt" size="1"(in thousands, except percentages)/font/i/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bAmount/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b%nbsp;ofnbsp;Total/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bAmount/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"b%nbsp;ofnbsp;Total/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;nbsp;nbsp;Money market mutual funds/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"b$/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b265,963/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b64.0/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"170,577/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"50.8/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;nbsp;/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;nbsp;nbsp;Cash accounts/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b149,525/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b36.0/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"165,301/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"49.2/font/td td valign="bottom" nowrap="nowrap"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;/font/td/tr tr style="font-size: 1px;"td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td valign="bottom" /td td valign="bottom" /td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;nbsp;nbsp;nbsp;Total/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"b$/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b415,488/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom" /td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"335,878/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom" /td td valign="bottom" /td/tr tr style="font-size: 1px;"td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td valign="bottom" /td td valign="bottom" /td/tr/table p style="margin-top: 12px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"The money market mutual fund balances reflected above are held in various funds of a single issuer. /font/p /div

Long-Term Debt

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

Long-Term Debt

6.	Long-Term Debt

Borrowings consist of the following:


*(in thousands)*	June 30, 2010			December 31, 2009
Term loan payable in quarterly installments with a final maturity of July 31, 2013	$	170,076		$	225,076
Capitalized lease obligations		199			350

Total		170,275			225,426
Less current portion		(21,436	)		(26,758	)

Long-term debt and capital lease obligations, net of current portion	$	148,839		$	198,668

On July 31, 2008, in association with the acquisition of Ansoft Corporation ("Ansoft"), ANSYS borrowed $355.0 million from a syndicate of banks. The interest rate on the indebtedness provides for tiered pricing with the initial rate at the prime rate + 0.50%, or the LIBOR rate + 1.50%, with step downs permitted after the initial six months under the credit agreement down to a flat prime rate or the LIBOR rate + 0.75%. Such tiered pricing is determined by the Company's consolidated leverage ratio. The Company's consolidated leverage ratio has been reduced to the lowest level in the debt agreement. During the six months ended June 30, 2010, the Company made the required quarterly principal payments of $12.8 million in the aggregate. In addition, the Company made prepayments totaling $42.2 million, which reduce, on a pro-rata basis, future quarterly principal installmen ts. As of June 30, 2010, required future principal payments total $10.6 million for the remainder of 2010, $31.9 million in 2011, $74.4 million in 2012 and $53.1 million in 2013.

The Company entered into an interest rate swap agreement in order to hedge a portion of each of the first eight forecasted quarterly variable rate interest payments on the Company's term loan. Under the swap agreement, the Company received the variable, three-month LIBOR rate required under its term loan and paid a fixed LIBOR interest rate of 3.32% on the notional amount. The initial notional amount of $300.0 million was amortized equally at an amount of $37.5 million per quarter over eight quarters through June 30, 2010. Because the Company paid the LIBOR rate on its underlying credit agreement, the interest rate swap agreement qualified for hedge accounting.

For the three and six months ended June 30, 2010, the Company recorded interest expense related to the term loan at weighted average interest rates of 1.59% and 1.82%, respectively. If the Company did not enter into the interest rate swap agreement, the weighted average interest rates would have been 1.04% and 1.02% for the three and six months ended June 30, 2010, respectively. For the three and six months ended June 30, 2009, the Company recorded interest expense related to the term loan at weighted average interest rates of 3.67% and 3.91%, respectively. If the Company did not enter into the interest rate swap agreement, the weighted average interest rates would have been 2.22% and 2.43% for the three and six months ended June 30, 2009, respectively. The interest expense on the term loan and amortization related to debt financing costs were as fo llows:

Three Months Ended

June 30, 2010

June 30, 2009

(in thousands)

Interest
Expense

Amortization

Interest
Expense

Amortization

July 31, 2008 term loan (interest expense includes $287 loss and $995 loss, respectively, on interest rate swap)

826

308

2,520

336

Six Months Ended

June 30, 2010

June 30, 2009

(in thousands)

Interest
Expense

Amortization

Interest
Expense

Amortization

July 31, 2008 term loan (interest expense includes $864 loss and $2,042 loss, respectively, on interest rate swap)

1,965

617

5,406

647

The interest rate on the outstanding term loan balance of $170.1 million is set for the quarter ending September 30, 2010 at 1.28%, which is based on LIBOR + 0.75%. As of June 30, 2010, the fair value of the debt approximated the recorded value.

The credit agreement includes covenants related to the consolidated leverage ratio and the consolidated fixed charge coverage ratio, as well as certain restrictions on additional investments and indebtedness. As of June 30, 2010, the Company is in compliance with all financial covenants as stated in the credit agreement.

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

Goodwill and Intangible Assets

7.	Goodwill and Intangible Assets

During the first quarter of 2010, the Company completed the annual impairment test for goodwill and intangible assets with indefinite lives and determined that these assets had not been impaired as of the test date, January 1, 2010. The Company tested the goodwill and identifiable intangible assets utilizing estimated cash flow methodologies and market comparable information. No events occurred or circumstances changed during the quarter ended June 30, 2010 that would indicate that the fair value of the Company's reporting unit is below its carrying amount.

The Company's intangible assets and estimated useful lives are classified as follows:


	June 30, 2010					December 31, 2009
*(in thousands)*	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Core technology (3 – 10 years)	$	204,307	$	(107,930	)	$	205,212	$	(96,851	)
Trademarks (3 – 10 years)		100,948		(17,033	)		101,034		(12,591	)
Non-compete agreements (5 years)		575		(431	)		712		(505	)
Customer lists (9 – 13 years)		163,511		(48,418	)		169,184		(44,239	)

Total	$	469,341	$	(173,812	)	$	476,142	$	(154,186	)

Unamortized intangible assets:
Trademarks	$	357				$	357

Amortization expense for the intangible assets reflected above was $12.1 million and $12.9 million for the three months ended June 30, 2010 and 2009, respectively. Amortization expense for the intangible assets reflected above was $24.2 million and $25.8 million for the six months ended June 30, 2010 and 2009, respectively.

Amortization expense for the amortized intangible assets reflected above is expected to be approximately $48.2 million, $44.9 million, $41.7 million, $36.7 million and $34.5 million for the years ending December 31, 2010, 2011, 2012, 2013 and 2014, respectively.

The changes in goodwill during the six months ended June 30, 2010 are as follows:


*(in thousands)*
Beginning balance – January 1, 2010	$	1,038,824
Currency translation and other		(2,673	)
Ansoft stock option tax benefit		(1,413	)

Ending balance – June 30, 2010	$	1,034,738

In conjunction with the Ansoft acquisition, Ansoft stock option holders received approximately 1.94 million fully vested ANSYS options. As these options are exercised, ANSYS may receive a tax benefit that will be treated as a reduction in goodwill. As of June 30, 2010, there are currently 475,000 shares underlying these options outstanding.

Fair Value Measurement

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

Fair Value Measurement

9.	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 the Company's own assumptions used to measure assets and liabilities at fair value.

A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following tables provide the assets and liabilities carried at fair value and measured on a recurring basis:


				Fair Value Measurements at Reporting Date Using:
*(in thousands)*	June 30, 2010			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents	$	265,963		$	265,963	$	0		$	0

Short-term investments	$	1,097		$	0	$	1,097		$	0


				Fair Value Measurements at Reporting Date Using:
*(in thousands)*	December 31, 2009			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents	$	170,577		$	170,577	$	0		$	0

Short-term investments	$	7,966		$	0	$	7,966		$	0

Liabilities
Interest rate swap agreement	$	(853	)	$	0	$	(853	)	$	0

The cash equivalents in the preceding tables represent money market mutual funds.

The short-term investments in the preceding tables represent deposits held by certain foreign subsidiaries of the Company. The deposits have fixed interest rates with maturity dates ranging from three months to one year. For the three months ended June 30, 2010, there were no unrealized gains or losses associated with these deposits.

The interest rate swap agreement in the preceding table was recorded in other accrued expenses and liabilities on the condensed consolidated balance sheet and was used to hedge a portion of each of the first eight forecasted quarterly variable rate interest payments on the Company's term loan. There was no ineffective portion of the swap agreement for the three or six months ended June 30, 2010 and 2009. The interest rate swap agreement terminated on June 30, 2010.

The pre-tax loss on the Company's derivative financial instrument is categorized in the table below:


	Three Months Ended
*(in thousands)*	Loss Recognized in Accumulated Other Comprehensive Income (Effective Portion)			Loss Reclassified from Accumulated Other Comprehensive Income into Income Statement (Effective Portion)			Gain / (Loss) Recognized in Income Statement (Ineffective Portion)
Cash Flow Hedge
Interest rate swap agreement
June 30, 2010	$	0		$	(287	)	$	0

June 30, 2009	$	(386	)	$	(995	)	$	0


	Six Months Ended
*(in thousands)*	Loss Recognized in Accumulated Other Comprehensive Income (Effective Portion)			Loss Reclassified from Accumulated Other Comprehensive Income into Income Statement (Effective Portion)			Gain / (Loss) Recognized in Income Statement (Ineffective Portion)
Cash Flow Hedge
Interest rate swap agreement
June 30, 2010	$	(11	)	$	(864	)	$	0

June 30, 2009	$	(449	)	$	(2,042	)	$	0

The carrying values of cash, accounts receivable, accounts payable, accrued expenses, other accrued liabilities and short-term obligations approximate their fair values because of their short-term nature. The carrying value of long-term debt approximates its fair value due to the variable interest rate underlying the Company's credit facility.

Geographic Information - Revenue	6 Months Ended
Geographic Information - Revenue	Jun. 30, 2010
Statement [Line Items]
Geographic Information - Revenue	div table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd valign="top" width="4%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"b10./b/font/td td valign="top" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"bGeographic Information - Revenue /b/font/td/tr/table p style="margin-top: 6px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"Revenue to external customers is attributed to individual countries based upon the location of the customer. Revenue by geographic area is as follows: /font/p p style="margin-top: 0px; margin-bottom: 0px; font-size: 12px;"nbsp;/p table border="0" cellspacing="0" cellpadding="0" width="92%" trtd width="64%" /td td valign="bottom" width="3%" /td td /td td /td td valign="bottom" width="3%" /td td /td td /td td valign="bottom" width="3%" /td td /td td /td td valign="bottom" width="3%" /td td /td td /td/tr trtd valign="bottom"font class="_mt" size="1"nbsp;/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="5" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bThree Months Ended/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="5" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bSix Months Ended/b/font/td/tr trtd valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="1"bi(in thousands)/i/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bJunenbsp;30,br /2010/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bJunenbsp;30,br /2009/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bJunenbsp;30,br /2010/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center"font style="font-family: Times New Roman;" class="_mt" size="1"bJunenbsp;30,br /2009/b/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"United States/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"b$/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b45,667/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"41,469/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"b$/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b89,774/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"79,552/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Japan/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b21,603/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"17,110/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b45,351/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"36,796/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Germany/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b14,315/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"17,083/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b29,665/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"33,196/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Canada/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b2,446/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"1,847/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b4,897/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"3,489/font/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Other European/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b32,160/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"28,308/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b65,182/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"54,800/font/td/tr trtd valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Other international/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b21,576/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"16,209/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"bnbsp;/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b38,951/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"nbsp;/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"30,503/font/td/tr tr style="font-size: 1px;"td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td td style="border-top: #000000 1px solid;" valign="bottom"nbsp;/td/tr tr bgcolor="#cceeff"td valign="top" p style="text-indent: -1em; margin-left: 1em;"font style="font-family: Times New Roman;" class="_mt" size="2"Total revenue/font/p/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"b$/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b137,767/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"122,026/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"b$/b/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"b273,820/b/font/td td valign="bottom"font class="_mt" size="1"nbsp;nbsp;/font/td td valign="bottom"font style="font-family: Times New Roman;" class="_mt" size="2"$/font/td td valign="bottom" align="right"font style="font-family: Times New Roman;" class="_mt" size="2"238,336/font/td/tr tr style="font-size: 1px;"td valign="bottom" /td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td valign="bottom"nbsp;nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td td style="border-top: #000000 3px double;" valign="bottom"nbsp;/td/tr/table p style="margin-top: 0px; margin-bottom: 0px;"font class="_mt" size="1" /fontnbsp;/p /div

Recently Issued Accounting Pronouncements

6 Months Ended

Jun. 30, 2010

Statement [Line Items]

Recently Issued Accounting Pronouncements

15.

Recently Issued Accounting Pronouncements

Revenue Recognition for Multiple-Deliverable Arrangements: In October 2009, new accounting guidance was issued for revenue arrangements with multiple deliverables that are outside the scope of the software revenue recognition guidance. Under the new accounting guidance, when vendor specific objective evidence or third party evidence for deliverables in an arrangement cannot be determined, a best estimate of the selling price is required to separate deliverables and allocate arrangement consideration using the relative selling price method. The new guidance includes new disclosure requirements on how the application of the relative selling price method affects the timing and amount of revenue recognition. This guidance is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June mp;nbsp;15, 2010. This guidance is not expected to have an impact on the Company's financial position, results of operations or cash flows. /font/p p style="margin-top: 12px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"biRevenue Recognition for Certain Arrangements that Include Software Elements:/i/b In October 2009, new accounting guidance was issued for revenue arrangements that include both tangible products and software elements. This new accounting guidance affects companies that sell or lease tangible products in an arrangement that contains software that is more than incidental to the tangible product as a whole. Additionally, clarification is given regarding what guidance should be used in allocation and measuring revenue. This guidance is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after Junenbsp;15, 2010. This guidance is not expected to have an impact on the Company's financial position, results of operations or cash flows. /font/p /div

Uncertain Tax Positions	6 Months Ended
Uncertain Tax Positions	Jun. 30, 2010
Statement [Line Items]
Uncertain Tax Positions	div table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd valign="top" width="4%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"b8./b/font/td td valign="top" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"bUncertain Tax Positions /b/font/td/tr/table p style="margin-top: 6px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"The Company's reserve for uncertain tax positions decreased from $10.0 million at Decembernbsp;31, 2009 to $9.3 million at Junenbsp;30, 2010. /font/p p style="margin-top: 0px; margin-bottom: 0px; font-size: 18px;"nbsp;/p /div

Stock Repurchase Program	6 Months Ended
Stock Repurchase Program	Jun. 30, 2010
Statement [Line Items]
Stock Repurchase Program	div table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%" trtd valign="top" width="4%" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"b12./b/font/td td valign="top" align="left"font style="font-family: Times New Roman;" class="_mt" size="2"bStock Repurchase Program /b/font/td/tr/table p style="margin-top: 6px; margin-bottom: 0px;"font style="font-family: Times New Roman;" class="_mt" size="2"Under the Company's stock repurchase program, during the six months ended Junenbsp;30, 2010, the Company repurchased no shares. During the six months ended Junenbsp;30, 2009, the Company repurchased 2,069,763 shares at an average price per share of $19.28. As of Junenbsp;30, 2010, 1.3nbsp;million shares remain authorized under the Company's stock repurchase program. /font/p p style="margin-top: 0px; margin-bottom: 0px; font-size: 18px;"nbsp;/p /div