Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.3
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Table 11.1: Components of Provision for Income Taxes
For the Year Ended September 30,
2023 2022 2021
(in thousands)
Current provision/(benefit):
Federal $ 34,033  $ 45,042  $ 62,062 
State and local 12,332  15,371  20,077 
Foreign 584  2,653  16,919 
Total current provision for income taxes 46,949  63,066  99,058 
Deferred tax expense/(benefit):
Federal (1,495) 7,107  (2,527)
State and local (673) 2,130  (590)
Foreign 3,720  967  (3,460)
Total deferred tax expense/(benefit) 1,552  10,204  (6,577)
Provision for income taxes $ 48,501  $ 73,270  $ 92,481 
Schedule of Income before Income Tax, Domestic and Foreign
Table 11.2: Components of Income before Provision for Income Taxes by Country
For the Year Ended September 30,
2023 2022 2021
(in thousands)
Domestic $ 198,115  $ 274,641  $ 339,647 
Foreign 12,178  2,457  44,034 
Income before provision for income taxes $ 210,293  $ 277,098  $ 383,681 
Schedule of Effective Income Tax Rate Reconciliation
Table 11.3: Reconciliation of Tax Expense at Statutory Rate to Actual Tax Expense
For the Year Ended September 30,
2023 2022 2021
(dollars in thousands)
Tax expense at statutory rate $ 44,162  $ 58,190  $ 80,573 
Increase/(decrease) due to:
State income taxes, net of federal benefit 11,501  14,244  18,350 
Foreign taxation rate differentials (590) (709) 4,212 
Non-deductible expenses 2,889  882  2,254 
Global intangible low taxed income 2,274  —  — 
Valuation allowance - foreign jurisdictions 2,010  4,875  2,285 
Tax credits (6,645) (5,239) (5,072)
Excess tax expense/(benefits) from stock-based compensation (1,399) 1,143  (6,008)
Other (5,701) (116) (4,113)
Income tax expense $ 48,501  $ 73,270  $ 92,481 
U.S. Federal Statutory tax rate 21.0  % 21.0  % 21.0  %
Effective tax rate 23.1  % 26.4  % 24.1  %
Schedule of Deferred Tax Assets and Liabilities
Table 11.4: Components of Deferred Tax Assets and Liabilities
As of September 30,
2023 2022
(in thousands)
Deferred tax assets/(liabilities):
Costs deductible in future periods $ 37,036  $ 36,604 
Deferred revenue 8,712  7,273 
Stock compensation 6,212  4,918 
Capital loss carryforward 2,391  2,391 
Net operating loss carryforwards 33,278  6,666 
Amortization of goodwill and intangibles (189,316) (198,903)
Capitalized software (28,246) (15,445)
Accounts receivable - unbilled (7,963) (12,087)
Property and equipment (3,437) (2,577)
Prepaid expenses (10,906) (11,522)
Financial instruments (8,158) (8,261)
Valuation allowance (34,643) (8,075)
Other (6,399) (2,111)
Net deferred tax liability $ (201,439) $ (201,129)
Our deferred tax assets and liabilities are held in various national and international jurisdictions that do not allow right of offset. Accordingly, our presentation of deferred taxes on our consolidated balance sheets is split between jurisdictions that show a net deferred tax asset and a net deferred tax liability.
Table 11.5: Deferred Tax Assets and Liabilities By Jurisdiction Positions
As of September 30,
2023 2022
(in thousands)
Total of tax jurisdictions with net deferred tax assets $ 2,459  $ 4,970 
Total of tax jurisdictions with net deferred tax liabilities (203,898) (206,099)
Net deferred tax liabilities $ (201,439) $ (201,129)
Summary of Income Tax Contingencies
Table 11.6: Reconciliation of the Beginning and Ending Amounts of Potential Tax Benefits
For the Year Ended September 30,
2023 2022 2021
(in thousands)
Balance at beginning of year $ 8,676  $ 12,642  $ 1,798 
Additions for acquired unrecognized tax benefits —  —  11,244 
Decreases for lapse of statute of limitations (2,051) (1,412) — 
Decreases for settlements with taxing authorities (692) (4,785) — 
Increases for tax positions taken in current year 300  2,231  300 
Decreases for tax positions taken in current year —  —  (700)
Balance at end of year $ 6,233  $ 8,676  $ 12,642