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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2021
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, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Domestic |  | $ | 41,199 |  |  | $ | (73,865 | ) |  | $ | (112,077 | )
Foreign |  |  | 350,556 |  |  |  | 208,571 |  |  |  | 132,377 |
Total income before income taxes |  | $ | 391,755 |  |  | $ | 134,706 |  |  | $ | 20,300 |
Schedule Of Provision For (Benefit From) Income Taxes | Our provision (benefit) for income taxes consisted of the following:
(in thousands) |  | Year ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,774 |  |  | $ | 2,187 |  |  | $ | 13,130 |
State |  |  | 1,609 |  |  |  | 1,266 |  |  |  | (945 | )
Foreign |  |  | 66,554 |  |  |  | 25,199 |  |  |  | 33,867 |
|  |  | 72,937 |  |  |  | 28,652 |  |  |  | 46,052 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (152,311 | ) |  |  | (26,811 | ) |  |  | 22,911 |
State |  |  | (27,228 | ) |  |  | (4,063 | ) |  |  | 1,759 |
Foreign |  |  | 21,434 |  |  |  | 6,233 |  |  |  | (22,962 | )
|  |  | (158,105 | ) |  |  | (24,641 | ) |  |  | 1,708 |
Total provision (benefit) for income taxes |  | $ | (85,168 | ) |  | $ | 4,011 |  |  | $ | 47,760 |
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, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Statutory federal income tax rate |  | $ | 82,268 |  |  |  | 21 | % |  | $ | 28,288 |  |  |  | 21 | % |  | $ | 4,263 |  |  |  | 21 | %
Change in valuation allowance |  |  | (134,695 | ) |  |  | (34 | )% |  |  | (16,489 | ) |  |  | (12 | )% |  |  | 66,417 |  |  |  | 327 | %
State income taxes, net of federal tax benefit |  |  | (28,768 | ) |  |  | (8 | )% |  |  | (2,998 | ) |  |  | (2 | )% |  |  | 607 |  |  |  | 3 | %
Federal research and development credits |  |  | (5,764 | ) |  |  | (2 | )% |  |  | (5,483 | ) |  |  | (4 | )% |  |  | (3,731 | ) |  |  | (18 | )%
Uncertain tax positions |  |  | 3,398 |  |  |  | 1 | % |  |  | 3,072 |  |  |  | 2 | % |  |  | 2,611 |  |  |  | 13 | %
Foreign tax credit |  |  | (35,368 | ) |  |  | (9 | )% |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Foreign rate differences |  |  | (34,584 | ) |  |  | (9 | )% |  | $ | (22,074 | ) |  |  | (16 | )% |  | $ | (26,952 | ) |  |  | (133 | )%
Foreign tax on U.S. provision |  |  | 5,931 |  |  |  | 2 | % |  |  | 4,523 |  |  |  | 3 | % |  |  | 6,547 |  |  |  | 32 | %
Excess tax benefits from restricted stock |  |  | (6,141 | ) |  |  | (2 | )% |  |  | (1,743 | ) |  |  | (1 | )% |  |  | (5,940 | ) |  |  | (29 | )%
Audits and settlements |  |  | 33,370 |  |  |  | 9 | % |  |  | — |  |  |  | — |  |  |  | 51 |  |  |  | — |
U.S. permanent items |  |  | 18,389 |  |  |  | 5 | % |  |  | 6,590 |  |  |  | 5 | % |  |  | 2,483 |  |  |  | 12 | %
BEAT |  |  | 2,936 |  |  |  | 1 | % |  |  | (1,759 | ) |  |  | (1 | )% |  |  | 1,759 |  |  |  | 9 | %
GILTI, net of foreign tax credits |  |  | 18,217 |  |  |  | 4 | % |  |  | 14,899 |  |  |  | 11 | % |  |  | 6,170 |  |  |  | 31 | %
Foreign-Derived Intangible Income (FDII) |  |  | (4,428 | ) |  |  | (1 | )% |  |  | (2,461 | ) |  |  | (2 | )% |  |  | (6,409 | ) |  |  | (32 | )%
Other, net |  |  | 71 |  |  |  | — |  |  |  | (354 | ) |  |  | (1 | )% |  |  | (116 | ) |  |  | (1 | )%
Provision (benefit) for income taxes |  | $ | (85,168 | ) |  |  | (22 | )% |  | $ | 4,011 |  |  |  | 3 | % |  | $ | 47,760 |  |  |  | 235 | %
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, |
|  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 65,383 |  |  | $ | 61,495 |
Foreign tax credits |  |  | 36,287 |  |  |  | 8,074 |
Capitalized research and development |  |  | 27,546 |  |  |  | 30,109 |
Pension benefits |  |  | 14,097 |  |  |  | 14,370 |
Prepaid expenses |  |  | 12,540 |  |  |  | 13,579 |
Deferred revenue |  |  | 2,274 |  |  |  | 6,021 |
Stock-based compensation |  |  | 15,822 |  |  |  | 13,630 |
Other reserves not currently deductible |  |  | 16,796 |  |  |  | 15,130 |
Amortization of intangible assets |  |  | 147,385 |  |  |  | 162,426 |
Research and development and other tax credits |  |  | 74,846 |  |  |  | 70,695 |
Lease liabilities |  |  | 51,471 |  |  |  | 52,224 |
Fixed assets |  |  | 53,025 |  |  |  | 47,457 |
Capital loss carryforward |  |  | 35,156 |  |  |  | 35,851 |
Other |  |  | 2,269 |  |  |  | 1,849 |
Gross deferred tax assets |  |  | 554,897 |  |  |  | 532,910 |
Valuation allowance |  |  | (52,085 | ) |  |  | (205,423 | )
Total deferred tax assets |  |  | 502,812 |  |  |  | 327,487 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Acquired intangible assets not deductible |  |  | (108,746 | ) |  |  | (65,894 | )
Lease assets |  |  | (37,273 | ) |  |  | (35,885 | )
Pension prepayments |  |  | (2,834 | ) |  |  | (1,155 | )
Deferred revenue |  |  | (2,662 | ) |  |  | (594 | )
Depreciation |  |  | (7,121 | ) |  |  | (7,481 | )
Unbilled accounts receivable |  |  | (6,391 | ) |  |  | (12,699 | )
Deferred income |  |  | (21,744 | ) |  |  | (5,821 | )
Prepaid commissions |  |  | (16,990 | ) |  |  | (17,124 | )
Other |  |  | (5,427 | ) |  |  | (2,302 | )
Total deferred tax liabilities |  |  | (209,188 | ) |  |  | (148,955 | )
Net deferred tax assets |  | $ | 293,624 |  |  | $ | 178,532 |
Summary Of Valuation Allowance | The changes to the valuation allowance were primarily due to the following:
(in thousands) |  | Year ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Valuation allowance, beginning of year |  | $ | 205,423 |  |  | $ | 177,663 |  |  | $ | 141,950 |
Net release of valuation allowance(1) |  |  | (134,235 | ) |  |  | — |  |  |  | (1,772 | )
Net increase (decrease) in deferred tax assets with a full valuation allowance(2) |  |  | (19,103 | ) |  |  | 27,760 |  |  |  | 37,485 |
Valuation allowance, end of year |  | $ | 52,085 |  |  | $ | 205,423 |  |  | $ | 177,663 |
(1) | In 2021, this is attributable to the release in the U.S and in 2019, this is attributable to the release in foreign jurisdictions.
(2) | In 2021, this change includes the loss of state attributes a upon merger of two wholly-owned subsidiaries. In 2020, this change is largely attributed to the Onshape acquisition, the adoption of ASC 842 and the impact to the change in scheduling of the reversal of existing temporary differences. 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 ASC 606.
Schedule Of Unrecognized Tax Benefit |
|  | Year ended September 30, |
Unrecognized tax benefits (in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Unrecognized tax benefit, beginning of year |  | $ | 16,107 |  |  | $ | 11,484 |  |  | $ | 9,812 |
Tax positions related to current year: |  |  |  |  |  |  |  |  |  |  |  |
Additions |  |  | 4,844 |  |  |  | 2,173 |  |  |  | 1,466 |
Tax positions related to prior years: |  |  |  |  |  |  |  |  |  |  |  |
Additions |  |  | 30,130 |  |  |  | 2,452 |  |  |  | 1,375 |
Reductions |  |  | (478 | ) |  |  | (2 | ) |  |  | (9 | )
Settlements |  |  | (29,437 | ) |  |  | — |  |  |  | (1,160 | )
Unrecognized tax benefit, end of year |  | $ | 21,166 |  |  | $ | 16,107 |  |  | $ | 11,484 |
Summary Of Income Tax Examinations Years | As of September 30, 2021, we remained subject to examination in the following major tax jurisdictions for the tax years indicated:
Major Tax Jurisdiction |  | Open Years
United States |  | 2017 through 2021
Germany |  | 2015 through 2021
France |  | 2018 through 2021
Japan |  | 2016 through 2021
Ireland |  | 2017 through 2021

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