Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.8.0.1
Income taxes (Tables)
12 Months Ended
Sep. 30, 2017
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,
 
2017
 
2016
 
2015
Income before income taxes:
 

 
 

 
 

United States
$
257,910

 
$
238,871

 
$
232,359

Foreign
56,325

 
47,097

 
27,460

Income before income taxes
$
314,235

 
$
285,968

 
$
259,819

Provision for income taxes
 
Year ended September 30,
 
2017
 
2016
 
2015
Current provision:
 

 
 

 
 

Federal
$
70,476

 
$
69,025

 
$
74,050

State and local
15,594

 
15,595

 
15,332

Foreign
11,221

 
15,536

 
9,581

Total current provision
97,291

 
100,156

 
98,963

Deferred tax expense (benefit):
 

 
 

 
 

Federal
5,490

 
7,778

 
2,233

State and local
643

 
902

 
403

Foreign
(1,371
)
 
(3,028
)
 
(1,829
)
Total deferred tax expense (benefit)
4,762

 
5,652

 
807

Provision for income taxes
$
102,053

 
$
105,808

 
$
99,770

Reconciliation of tax provision using the federal statutory income tax rate to reported provision
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,
 
2017
 
2016
 
2015
Federal income tax provision at statutory rate of 35%
$
109,982

 
$
100,089

 
$
90,937

State income taxes, net of federal benefit
10,554

 
10,723

 
9,847

Foreign taxation
(6,940
)
 
(3,976
)
 
(2,208
)
Permanent items
970

 
1,284

 
1,602

Tax credits
(4,851
)
 
(1,592
)
 
(961
)
Vesting of equity compensation
(6,569
)
 

 

Other
(1,093
)
 
(720
)
 
553

Provision for income taxes
$
102,053

 
$
105,808

 
$
99,770

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,
 
2017
 
2016
Balance of tax jurisdictions with net deferred tax assets
$
7,691

 
$
8,644

Balance of tax jurisdictions with net deferred tax liabilities
(20,106
)
 
(16,813
)
Net deferred tax liabilities
$
(12,415
)
 
$
(8,169
)
The significant items comprising our deferred tax assets and liabilities as of September 30, 2017 and 2016 are as follows (in thousands):
 
As of September 30,
 
2017
 
2016
Net deferred tax assets/(liabilities)
 

 
 

Costs deductible in future periods
$
30,794

 
$
27,738

Deferred revenue
20,703

 
23,469

Stock compensation
4,976

 
5,085

Net operating loss carryforwards
360

 
1,291

Amortization of goodwill and intangible assets
(36,100
)
 
(34,484
)
Capitalized software
(9,197
)
 
(10,126
)
Accounts receivable - unbilled
(12,953
)
 
(13,810
)
Property and equipment
(3,924
)
 
(5,517
)
Prepaid expenses
(3,741
)
 
(1,296
)
Other
(3,333
)
 
(519
)
 
$
(12,415
)
 
$
(8,169
)
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):
 
Year ended September 30,
 
2017
 
2016
 
2015
Balance at beginning of year
$
448

 
$
529

 
$
812

Lapse of statute of limitation

 

 
(200
)
Increases for tax positions taken in current year
185

 

 

Reductions for tax positions of prior years

 
(81
)
 
(83
)
Balance at end of year
$
633

 
$
448

 
$
529