Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes was as follows during fiscal 2016, 2015 and 2014:

	Year ended September 30,
	2016			2015			2014
	(In thousands)
Current:
Federal	$	50,631		$	23,646		$	42,570
State	2,900			(5,381		)	4,221
Foreign	7,597			10,405			7,487
	61,128			28,670			54,278
Deferred:
Federal	(23,592		)	(5,004		)	(15,401		)
State	(225		)	1,422			(1,093		)
Foreign	(2,190		)	(2,352		)	468
	(26,007		)	(5,934		)	(16,026		)
Total provision	$	35,121		$	22,736		$	38,252

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at September 30, 2016 and 2015 were as follows:

	September 30,
	2016			2015
	(In thousands)
Deferred tax assets:
Net operating loss carryforward	$	16,122		$	17,650
Foreign tax credit carryforward	14,590			—
Research credit carryforward	6,132			5,759
Accrued bonus	13,807			5,400
Investments	619			1,042
Accrued compensation	1,328			1,834
Share-based compensation	27,203			23,741
Deferred revenue	1,467			979
Accrued lease costs	3,406			5,009
Property and equipment	3,348			3,249
Other	7,728			5,613
	95,750			70,276
Less valuation allowance	(15,145		)	(13,882		)
Total deferred tax assets	80,605			56,394
Deferred tax liabilities:
Intangible assets	(28,056		)	(30,286		)
Prepaid expense	(3,959		)	(3,877		)
Other	(992		)	(993		)
Total deferred tax liabilities	(33,007		)	(35,156		)
Deferred tax assets, net	$	47,598		$	21,238

Reconciliation Between Federal Statutory Income Tax Rate and Effective Tax Rate

A reconciliation of the provision for income taxes, with the amount computed by applying the U.S. federal statutory income tax rate (35% in fiscal 2016, 2015 and 2014) to income before provision for income taxes for fiscal 2016, 2015 and 2014 is shown below:

	Year Ended September 30,
	2016			2015			2014
	(In thousands)
Income tax provision at U.S. federal statutory rate	$	50,599		$	38,233		$	46,595
State income taxes, net of U.S. federal benefit	2,244			1,719			2,832
Foreign tax rate differential	(4,661		)	(5,279		)	(4,592		)
Intercompany interest	(1,223		)	(1,260		)	(1,246		)
Research credits	(4,398		)	(2,104		)	(302		)
Domestic production deduction	(3,726		)	(1,607		)	(3,141		)
Federal and state audit settlements	(248		)	(5,806		)	(5,886		)
Foreign	(1,702		)	(3,109		)	(1,654		)
Valuation allowance	1,262			1,805			3,888
Foreign Tax Credit	(3,286		)	(1,296		)	150
Other	260			1,440			1,608
Recorded income tax provision	$	35,121		$	22,736		$	38,252

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,
	2016			2015			2014
	(In thousands)
Gross unrecognized tax benefits at beginning of year	$	4,634		$	4,554		$	9,009
Gross increases for tax positions in prior years	1,004			1,725			2,468
Gross decreases for tax positions in prior years	(117		)	(3		)	(967		)
Gross increases based on tax positions related to the current year	1,310			582			923
Decreases for settlements and payments	(32		)	(2,224		)	(6,879		)
Gross unrecognized tax benefits at end of year	$	6,799		$	4,634		$	4,554