Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes was as follows during fiscal 2018, 2017 and 2016:

	Year ended September 30,
	2018			2017			2016
	(In thousands)
Current:
Federal	$	8,071		$	19,576		$	50,631
State	2,236			1,055			2,900
Foreign	9,559			8,486			7,597
	19,866			29,117			61,128
Deferred:
Federal	28,013			(5,027		)	(23,592		)
State	132			(296		)	(225		)
Foreign	(2,416		)	(726		)	(2,190		)
	25,729			(6,049		)	(26,007		)
Total provision	$	45,595		$	23,068		$	35,121

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at September 30, 2018 and 2017 were as follows:

	September 30,
	2018			2017
	(In thousands)
Deferred tax assets:
Loss and credit carryforwards	$	24,400		$	34,383
Compensation benefits	30,388			45,823
Property and equipment	—			3,476
Other assets	9,674			12,239
	64,462			95,921
Less valuation allowance	(19,564		)	(17,657		)
Total deferred tax assets	44,898			78,264
Deferred tax liabilities:
Intangible assets	(15,921		)	(25,346		)
Property and equipment	(2,616		)	—
Other liabilities	(6,229		)	(5,714		)
Total deferred tax liabilities	(24,766		)	(31,060		)
Deferred tax assets, net	$	20,132		$	47,204

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 (24.5% in fiscal 2018, and 35% in fiscal 2017 and 2016) to income before provision for income taxes for fiscal 2018, 2017 and 2016 is shown below:

	Year Ended September 30,
	2018			2017			2016
	(In thousands)
Income tax provision at U.S. federal statutory rate	$	46,119		$	52,963		$	50,599
State income taxes, net of U.S. federal benefit	3,429			2,193			2,244
Foreign tax rate differential	(42		)	(1,761		)	(4,661		)
Intercompany interest	—			(477		)	(1,223		)
Research credits	(3,486		)	(2,572		)	(4,398		)
Domestic production deduction	(3,041		)	(3,075		)	(3,726		)
Amended returns/audit settlements/statute expirations	(2,349		)	(1,296		)	(248		)
Foreign	4,040			744			(1,702		)
Valuation allowance	1,907			2,512			1,262
Foreign tax credit	1,320			(1,342		)	(3,286		)
Excess tax benefits relating to stock-based compensation	(22,253		)	(24,746		)	—
Tax effect of the Tax Act	23,579			—			—
Other	(3,628		)	(75		)	260
Recorded income tax provision	$	45,595		$	23,068		$	35,121

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,
	2018			2017			2016
	(In thousands)
Gross unrecognized tax benefits at beginning of year	$	6,480		$	6,799		$	4,634
Gross increases for tax positions in prior years	404			57			1,004
Gross decreases for tax positions in prior years	—			(19		)	(117		)
Gross increases based on tax positions related to the current year	1,625			1,291			1,310
Decreases for settlements and payments	—			(151		)	(32		)
Decreases due to statue expiration	(2,396		)	(1,497		)	—
Gross unrecognized tax benefits at end of year	$	6,113		$	6,480		$	6,799