Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Summary Of Income (Loss) Before Income Taxes

Our income (loss) before income taxes consisted of the following:

(in thousands)	Year ended September 30,
	2019			2018			2017
Domestic	$	(112,077	)	$	(114,591	)	$	(140,150	)
Foreign	132,377			143,247			138,744
Total income (loss) before income taxes	$	20,300		$	28,656		$	(1,406	)

Schedule Of Provision For (Benefit From) Income Taxes

Our (benefit) provision for income taxes consisted of the following:

(in thousands)	Year ended September 30,
	2019			2018			2017
Current:
Federal	$	13,130		$	3,009		$	2,423
State	(945		)	2,003			340
Foreign	33,867			28,213			17,881
	46,052			33,225			20,644
Deferred:
Federal	22,911			(12,594		)	4,911
State	1,759			(445		)	877
Foreign	(22,962		)	(43,517		)	(34,077		)
	1,708			(56,556		)	(28,289		)
Total provision (benefit) for income taxes	$	47,760		$	(23,331	)	$	(7,645	)

Summary Of Federal Income Tax Rate And Effective Income Tax Rate

Taxes computed at the statutory federal income tax rates are reconciled to the provision (benefit) for income taxes as follows:

 

(in thousands)	Year ended September 30,
	2019					2018					2017
Statutory federal income tax rate	$	4,263		21	%	$	7,021		25	%	$	(492	)	(35	)%
Change in valuation allowance	66,417			327	%	(181,047		)	(632	)%	17,334			1,233	%
Transition impact of U.S. Tax Act	—			—	%	126,122			440	%	—			—	%
Federal rate change	—			—	%	69,648			243	%	—			—	%
State income taxes, net of federal tax benefit	607			3	%	2,401			8	%	627			45	%
Federal research and development credits	(3,731		)	(18	)%	(3,058		)	(11	)%	(2,182		)	(155	)%
Uncertain tax positions	2,611			13	%	(4,646		)	(16	)%	(3,840		)	(273	)%
Foreign rate differences	(26,952		)	(133	)%	(38,743		)	(135	)%	(27,932		)	(1,987	)%
Foreign tax on U.S. provision	6,547			32	%	2,736			10	%	2,737			195	%
Excess tax benefits from restricted stock	(5,940		)	(29	)%	(11,641		)	(41	)%	—			—	%
Audits and settlements	51			—	%	2,352			8	%	—			—	%
U.S. permanent items	2,483			12	%	5,408			19	%	6,030			429	%
BEAT	1,759			9	%	—			—	%	—			—	%
GILTI, net of foreign tax credits	6,170			31	%	—			—	%	—			—	%
Foreign-Derived Intangible Income (FDII)	(6,409		)	(32	)%	—			—	%	—			—	%
Other, net	(116		)	(1	)%	116			1	%	73			4	%
Benefit for income taxes	$	47,760		235	%	$	(23,331	)	(81	)%	$	(7,645	)	(544	)%

Schedule Of Deferred Tax Assets And Liabilities

The significant temporary differences that created deferred tax assets and liabilities are shown below: 

(in thousands)	September 30,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	26,462		$	31,329
Foreign tax credits	—			2,201
Capitalized research and development	34,560			20,999
Pension benefits	14,838			12,296
Prepaid expenses	41,739			30,614
Deferred revenue	9,899			33,886
Stock-based compensation	12,306			11,622
Other reserves not currently deductible	20,986			13,588
Amortization of intangible assets	168,376			96,841
Research and development and other tax credits	49,995			55,760
Fixed assets	45,450			4,364
Capital loss carryforward	31,248			33,024
Deferred interest	10,864			13,057
Other	1,623			1,152
Gross deferred tax assets	468,346			360,733
Valuation allowance	(177,663		)	(141,950		)
Total deferred tax assets	290,683			218,783
Deferred tax liabilities:
Acquired intangible assets not deductible	(42,554		)	(41,139		)
Pension prepayments	(2,532		)	(2,362		)
Deferred revenue	(19,312		)	(6,978		)
Unbilled accounts receivable	(31,005		)	—
Deferred income	(19,040		)	(6,641		)
Prepaid commissions	(17,423		)	—
Other	(1,866		)	(1,686		)
Total deferred tax liabilities	(133,732		)	(58,806		)
Net deferred tax assets	$	156,951		$	159,977

Summary Of Valuation Allowance

The changes to the valuation allowance were primarily due to the following:

(in millions)	Year ended September 30,
	2019			2018			2017
Valuation allowance beginning of year	$	142.0		$	279.7		$	235.5
Net release of valuation allowance (1)	(1.8		)	(2.8		)	(9.1		)
Net increase (decrease) in deferred tax assets with a full valuation allowance (2)	37.5			(134.9		)	53.3
Valuation allowance end of year	$	177.7		$	142.0		$	279.7

(1) In 2019, 2018 and 2017, this is attributable to the release in foreign jurisdictions.

(2)

In 2019, this is due in large part to a change in method of accounting for federal income tax purposes resulting in deferred tax liabilities that cannot be offset against available tax attributes in the scheduling of the reversal of existing temporary differences, and by the adoption of ASC606. In 2018, this is primarily attributable to U.S. tax reform: the utilization of tax attributes used to offset the transition tax, the revaluation of the U.S. net deferred tax assets and liabilities, the ability to realize net operating losses from the reversal of existing deferred tax assets which can now be carried forward indefinitely and can therefore be netted against deferred tax liabilities for indefinite lived intangible.

Schedule Of Unrecognized Tax Benefit

	Year ended September 30,
Unrecognized tax benefits (in millions)	2019			2018			2017
Unrecognized tax benefit beginning of year	$	9.8		$	14.8		$	15.5
Tax positions related to current year:
Additions	1.5			1.5			0.9
Tax positions related to prior years:
Additions	1.4			—			1.0
Reductions	—			(4.7		)	(1.6		)
Settlements	(1.2		)	—			(1.0		)
Statute expirations	—			(1.8		)	—
Unrecognized tax benefit end of year	$	11.5		$	9.8		$	14.8

Summary Of Income Tax Examinations Years

As of September 30, 2019, we remained subject to examination in the following major tax jurisdictions for the tax years indicated:

Major Tax Jurisdiction	Open Years
United States	2015 through 2019
Germany	2011 through 2019
France	2016 through 2019
Japan	2014 through 2019
Ireland	2015 through 2019