Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes was as follows during fiscal 2014, 2013 and 2012:

	Year ended September 30,
	2014			2013			2012
	(In thousands)
Current:
Federal	$	42,570		$	31,469		$	42,502
State	4,221			2,755			4,899
Foreign	7,487			3,994			3,959
	54,278			38,218			51,360
Deferred:
Federal	(15,401		)	(468		)	(6,843		)
State	(1,093		)	2,069			(925		)
Foreign	468			2,070			647
	(16,026		)	3,671			(7,121		)
Total provision	$	38,252		$	41,889		$	44,239

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at September 30, 2014 and 2013 were as follows:

	September 30,
	2014			2013
	(In thousands)
Deferred tax assets:
Net operating loss carryforward	$	18,618		$	21,529
Research credit carryforward	5,018			4,074
Accrued Bonus	8,484			3,591
Capital loss carryforward	519			165
Investments	1,059			1,101
Accrued compensation	1,381			1,662
Share-based compensation	20,238			16,443
Deferred revenue	629			2,139
Accrued lease costs	1,007			1,127
Property and equipment	2,837			2,155
Other	4,212			3,502
	64,002			57,488
Less valuation allowance	(12,078		)	(8,712		)
Total deferred tax assets	51,924			48,776
Deferred tax liabilities:
Intangible assets	(27,391		)	(29,912		)
Prepaid expense	(3,966		)	(3,526		)
Other	(993		)	(1,515		)
Total deferred tax liabilities	(32,350		)	(34,953		)
Deferred tax assets, net	$	19,574		$	13,823

Reconciliation Between Federal Statutory Income Tax Rate and Effective Tax Rate

The reconciliation between the U.S. federal statutory income tax rate of 35% and our effective tax rate is shown below for fiscal 2014, 2013 and 2012:

	Year Ended September 30,
	2014			2013			2012
	(In thousands)
Income tax provision at U.S. federal statutory rate	$	46,595		$	46,194		$	47,685
State income taxes, net of U.S. federal benefit	2,832			2,689			3,663
Foreign Tax Rate Differential	(4,592		)	(2,855		)	(3,616		)
Intercompany Interest	(1,246		)	—			—
Research credits	(302		)	(2,412		)	(375		)
Domestic production deduction	(3,141		)	(2,168		)	(3,054		)
Federal and State Audit Settlements	(5,886		)	—			(1,203		)
Foreign	(1,654		)	—			—
Valuation Allowance	3,888			2,310			—
Intercompany dividend	150			(32		)	2,692
Other	1,608			(1,837		)	(1,553		)
Recorded income tax provision	$	38,252		$	41,889		$	44,239

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended September 30,
	2014			2013		2012
	(In thousands)
Gross unrecognized tax benefits at beginning of year	$	9,009		$	7,501	$	9,539
Gross increases for tax positions in prior years	2,468			508		64
Gross decreases for tax positions in prior years	(967		)	—		(2,035		)
Gross increases based on tax positions related to the current year	923			1,000		681
Decreases for settlements and payments	(6,879		)	—		(748		)
Gross unrecognized tax benefits at end of year	$	4,554		$	9,009	$	7,501