Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v2.4.0.8
Income taxes (Tables)
12 Months Ended
Sep. 30, 2013
Income taxes  
Components of income from continuing operations before income taxes

The Company's components of income from continuing operations before income taxes and the corresponding provision for income taxes is as follows (in thousands):

 
  Year ended September 30,  
 
  2013   2012   2011  

Income from continuing operations before income taxes:

                   

United States

  $ 140,371   $ 93,418   $ 66,842  

Foreign

    48,688     38,333     59,054  
               

Income from continuing operations before income taxes

  $ 189,059   $ 131,751   $ 125,896  
               

 
  Year ended September 30,  
 
  2013   2012   2011  

Current provision:

                   

Federal

  $ 43,460   $ 36,348   $ 20,090  

State and local

    11,257     9,006     4,484  

Foreign

    14,821     13,572     17,422  
               

Total current provision

    69,538     58,926     41,996  
               

Deferred tax expense (benefit):

                   

Federal

  $ 2,741   $ (1,272 ) $ 1,572  

State and local

    851     (471 )   397  

Foreign

    (1,196 )   (1,531 )   (211 )
               

Total deferred tax expense (benefit)

    2,396     (3,274 )   1,758  
               

Income tax expense

  $ 71,934   $ 55,652   $ 43,754  
               
Provision for income taxes

 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,  
 
  2013   2012   2011  

Federal income tax provision at statutory rate of 35%

  $ 66,171   $ 46,113   $ 44,063  

State income taxes, net of federal benefit

    8,183     5,558     3,175  

Foreign taxation

    (3,499 )   (1,950 )   (3,644 )

Permanent items

    708     2,808     314  

True up to prior year

        2,715      

Valuation allowances on net operating loss carryforwards

        305     (16 )

Other

    371     103     (138 )
               

Income tax expense

  $ 71,934   $ 55,652   $ 43,754  
               
Significant items comprising the Company's deferred tax assets and liabilities

 The significant items comprising the Company's deferred tax assets and liabilities as of September 30, 2013 and 2012 are as follows (in thousands):

 
  As of September 30,  
 
  2013   2012  

Deferred tax assets—current:

             

Costs deductible in future periods

  $ 21,186   $ 11,126  

Deferred revenue

    10,930     14,543  

Net operating loss carryforwards

        811  

Other

    544      
           

Total deferred tax assets—current

    32,660     26,480  
           

Deferred tax liabilities—current:

             

Accounts receivable—unbilled

    6,217     3,932  

Other

        341  
           

Total deferred tax liabilities—current:

    6,217     4,273  
           

Net deferred tax asset—current

  $ 26,443   $ 22,207  
           

Deferred tax assets—non-current:

             

Net operating loss carryforwards

  $ 4,080   $ 5,728  

Valuation allowance on net operating loss carryforwards

    (968 )   (1,313 )
           

Net operating loss carryforwards net of valuation reserve

    3,112     4,415  

Deferred revenue

    10,340     6,737  

Stock compensation

    4,601     4,176  

Costs deductible in future periods

    1,528     1,021  

Other

    5,360     3,055  
           

Total deferred tax assets—non-current

    24,941     19,404  
           

Deferred tax liabilities—non-current

             

Amortization of goodwill and intangible assets

    19,383     14,218  

Capitalized software

    9,045     4,701  

Property and equipment

    8,687     8,535  

Deferred contract costs

    2,059     452  

Other

    947     513  
           

Total deferred tax liability—non-current

  $ 40,121   $ 28,419  
           

Net deferred tax liability—non-current

  $ 15,180   $ 9,015  
           
Components of noncurrent deferred tax assets (liabilities)

 Due to deferred tax assets and liabilities in different tax jurisdictions, the net long-term assets and liabilities are reflected on the accompanying consolidated balance sheet as follows (in thousands):

 
  As of September 30,  
 
  2013   2012  

Long-term assets

  $ 1,179   $ 1,369  

Long-term liabilities

    16,359     10,384  
           

Net deferred tax liability—non-current

  $ 15,180   $ 9,015  
           
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  
 
  2013   2012   2011  

Balance at beginning of year

  $ 1,059   $ 1,172   $ 1,553  

Lapse of statute of limitation

    (230 )   (113 )   (381 )

Reductions for tax positions of prior years

    (17 )        
               

Balance at end of year

  $ 812   $ 1,059   $ 1,172