Income taxes (Tables)
|
12 Months Ended |
Sep. 30, 2016 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of income from continuing operations before income taxes |
The components of income before income taxes and the corresponding provision for income taxes are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended September 30, |
|
2016 |
|
2015 |
|
2014 |
Income before income taxes: |
|
|
|
|
|
|
|
|
United States |
$ |
238,871 |
|
|
$ |
232,359 |
|
|
$ |
180,820 |
|
Foreign |
47,097 |
|
|
27,460 |
|
|
46,549 |
|
Income before income taxes |
$ |
285,968 |
|
|
$ |
259,819 |
|
|
$ |
227,369 |
|
|
| Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended September 30, |
|
2016 |
|
2015 |
|
2014 |
Current provision: |
|
|
|
|
|
|
|
|
Federal |
$ |
69,025 |
|
|
$ |
74,050 |
|
|
$ |
55,656 |
|
State and local |
15,595 |
|
|
15,332 |
|
|
12,003 |
|
Foreign |
15,536 |
|
|
9,581 |
|
|
11,416 |
|
Total current provision |
100,156 |
|
|
98,963 |
|
|
79,075 |
|
Deferred tax expense (benefit): |
|
|
|
|
|
|
|
|
Federal |
7,778 |
|
|
2,233 |
|
|
1,750 |
|
State and local |
902 |
|
|
403 |
|
|
181 |
|
Foreign |
(3,028 |
) |
|
(1,829 |
) |
|
967 |
|
Total deferred tax expense (benefit) |
5,652 |
|
|
807 |
|
|
2,898 |
|
Provision for income taxes |
$ |
105,808 |
|
|
$ |
99,770 |
|
|
$ |
81,973 |
|
|
| Reconciliation of tax provision using the federal statutory income tax rate to reported provision |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Year ended September 30, |
|
2016 |
|
2015 |
|
2014 |
Current provision: |
|
|
|
|
|
|
|
|
Federal |
$ |
69,025 |
|
|
$ |
74,050 |
|
|
$ |
55,656 |
|
State and local |
15,595 |
|
|
15,332 |
|
|
12,003 |
|
Foreign |
15,536 |
|
|
9,581 |
|
|
11,416 |
|
Total current provision |
100,156 |
|
|
98,963 |
|
|
79,075 |
|
Deferred tax expense (benefit): |
|
|
|
|
|
|
|
|
Federal |
7,778 |
|
|
2,233 |
|
|
1,750 |
|
State and local |
902 |
|
|
403 |
|
|
181 |
|
Foreign |
(3,028 |
) |
|
(1,829 |
) |
|
967 |
|
Total deferred tax expense (benefit) |
5,652 |
|
|
807 |
|
|
2,898 |
|
Provision for income taxes |
$ |
105,808 |
|
|
$ |
99,770 |
|
|
$ |
81,973 |
|
The provision for income taxes differs from that which would have resulted from the use of the federal statutory income tax rate as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended September 30, |
|
2016 |
|
2015 |
|
2014 |
Federal income tax provision at statutory rate of 35% |
$ |
100,089 |
|
|
$ |
90,937 |
|
|
$ |
79,579 |
|
State income taxes, net of federal benefit |
10,723 |
|
|
9,847 |
|
|
7,920 |
|
Foreign taxation |
(3,976 |
) |
|
(2,208 |
) |
|
(3,909 |
) |
Permanent items |
1,284 |
|
|
1,602 |
|
|
1,286 |
|
Tax credits |
(1,592 |
) |
|
(961 |
) |
|
(1,623 |
) |
Valuation allowances on net operating loss carryforwards |
— |
|
|
— |
|
|
(962 |
) |
Other |
(720 |
) |
|
553 |
|
|
(318 |
) |
Provision for income taxes |
$ |
105,808 |
|
|
$ |
99,770 |
|
|
$ |
81,973 |
|
|
| Significant items comprising the Company's deferred tax assets and liabilities |
Our net deferred tax position is summarized below (in thousands):
|
|
|
|
|
|
|
|
|
|
As of September 30, |
|
2016 |
|
2015 |
Balance of tax jurisdictions with net deferred tax assets |
$ |
8,644 |
|
|
$ |
11,058 |
|
Balance of tax jurisdictions with net deferred tax liabilities |
(16,813 |
) |
|
(6,546 |
) |
Net deferred tax assets/(liabilities) |
$ |
(8,169 |
) |
|
$ |
4,512 |
|
The significant items comprising our deferred tax assets and liabilities as of September 30, 2016 and 2015 are as follows (in thousands):
|
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|
|
|
|
|
|
|
|
As of September 30, |
|
2016 |
|
2015 |
Net deferred tax assets/(liabilities) |
|
|
|
|
|
Costs deductible in future periods |
$ |
27,738 |
|
|
$ |
25,896 |
|
Deferred revenue |
23,469 |
|
|
21,446 |
|
Stock compensation |
5,085 |
|
|
4,600 |
|
Net operating loss carryforwards |
1,291 |
|
|
1,356 |
|
Amortization of goodwill and intangible assets |
(34,484 |
) |
|
(22,061 |
) |
Capitalized software |
(10,126 |
) |
|
(9,781 |
) |
Accounts receivable - unbilled |
(13,810 |
) |
|
(9,598 |
) |
Property and equipment |
(5,517 |
) |
|
(6,650 |
) |
Other |
(1,815 |
) |
|
(696 |
) |
|
$ |
(8,169 |
) |
|
$ |
4,512 |
|
|
| Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits |
The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
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|
Year ended September 30, |
|
2016 |
|
2015 |
|
2014 |
Balance at beginning of year |
$ |
529 |
|
|
$ |
812 |
|
|
$ |
812 |
|
Lapse of statute of limitation |
— |
|
|
(200 |
) |
|
— |
|
Reductions for tax positions of prior years |
(81 |
) |
|
(83 |
) |
|
— |
|
Balance at end of year |
$ |
448 |
|
|
$ |
529 |
|
|
$ |
812 |
|
|