XML 55 R36.htm IDEA: XBRL DOCUMENT
v3.23.3

Income Taxes (Tables) | 12 Months Ended
--- | ---
Sep. 30, 2023
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, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Domestic |  | $ | (49,193 | ) |  | $ | 97,460 |  |  | $ | 41,199 |
Foreign |  |  | 381,759 |  |  |  | 299,638 |  |  |  | 350,556 |
Total income before income taxes |  | $ | 332,566 |  |  | $ | 397,098 |  |  | $ | 391,755 |
Schedule of Provision For (Benefit From) Income Taxes | Our Provision (benefit) for income taxes consisted of the following:
(in thousands) |  | Year ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 7,311 |  |  | $ | 767 |  |  | $ | 4,774 |
State |  |  | 10,020 |  |  |  | 6,675 |  |  |  | 1,609 |
Foreign |  |  | 53,019 |  |  |  | 33,612 |  |  |  | 66,554 |
|  |  | 70,350 |  |  |  | 41,054 |  |  |  | 72,937 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (11,821 | ) |  |  | 25,730 |  |  |  | (152,311 | )
State |  |  | (10,028 | ) |  |  | (3,177 | ) |  |  | (27,228 | )
Foreign |  |  | 38,525 |  |  |  | 20,410 |  |  |  | 21,434 |
|  |  | 16,676 |  |  |  | 42,963 |  |  |  | (158,105 | )
Provision (benefit) for income taxes |  | $ | 87,026 |  |  | $ | 84,017 |  |  | $ | (85,168 | )
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, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Statutory federal income tax rate |  | $ | 69,839 |  |  |  | 21 | % |  | $ | 83,391 |  |  |  | 21 | % |  | $ | 82,268 |  |  |  | 21 | %
Change in valuation allowance |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (134,695 | ) |  |  | (34 | )%
State income taxes, net of federal tax benefit |  |  | 577 |  |  |  | 0 | % |  |  | 6,518 |  |  |  | 2 | % |  |  | (28,768 | ) |  |  | (8 | )%
Federal research and development credits |  |  | (7,751 | ) |  |  | (2 | )% |  |  | (7,477 | ) |  |  | (2 | )% |  |  | (5,764 | ) |  |  | (2 | )%
Uncertain tax positions |  |  | 23,302 |  |  |  | 7 | % |  |  | 2,418 |  |  |  | 1 | % |  |  | 3,398 |  |  |  | 1 | %
Foreign tax credit |  |  | (11,415 | ) |  |  | (3 | )% |  |  | (9,078 | ) |  |  | (2 | )% |  |  | (35,368 | ) |  |  | (9 | )%
Foreign rate differences |  |  | (20,829 | ) |  |  | (6 | )% |  |  | (8,982 | ) |  |  | (2 | )% |  |  | (34,584 | ) |  |  | (9 | )%
Foreign tax on U.S. provision |  |  | 11,415 |  |  |  | 3 | % |  |  | 9,078 |  |  |  | 2 | % |  |  | 5,931 |  |  |  | 2 | %
Excess tax benefits from restricted stock |  |  | (6,963 | ) |  |  | (2 | )% |  |  | (8,278 | ) |  |  | (2 | )% |  |  | (6,141 | ) |  |  | (2 | )%
Audits and settlements |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 33,370 |  |  |  | 9 | %
U.S. permanent items |  |  | 5,341 |  |  |  | 2 | % |  |  | 3,453 |  |  |  | — |  |  |  | 7,449 |  |  |  | 2 | %
Non-deductible compensation |  |  | 8,344 |  |  |  | 3 | % |  |  | 11,851 |  |  |  | 3 | % |  |  | 10,940 |  |  |  | 3 | %
Base Erosion Anti-Abuse Tax (BEAT) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,936 |  |  |  | 1 | %
GILTI, net of foreign tax credits |  |  | 17,861 |  |  |  | 5 | % |  |  | 2,705 |  |  |  | 1 | % |  |  | 18,217 |  |  |  | 4 | %
Foreign-Derived Intangible Income (FDII) |  |  | (8,987 | ) |  |  | (3 | )% |  |  | (6,848 | ) |  |  | (2 | )% |  |  | (4,428 | ) |  |  | (1 | )%
Non-deductible imputed interest |  |  | 6,292 |  |  |  | 2 | % |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Sale of a portion of the PLM services business |  |  | — |  |  |  | — |  |  |  | 6,844 |  |  |  | 2 | % |  |  | — |  |  |  | — |
Other, net |  |  | — |  |  |  | (1 | )% |  |  | (1,578 | ) |  |  | (1 | )% |  |  | 71 |  |  |  | — |
Provision (benefit) for income taxes |  | $ | 87,026 |  |  |  | 26 | % |  | $ | 84,017 |  |  |  | 21 | % |  | $ | (85,168 | ) |  |  | (22 | )%
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, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 22,272 |  |  | $ | 40,419 |
Foreign tax credits |  |  | 3,750 |  |  |  | 14,527 |
Capitalized research and development |  |  | 83,748 |  |  |  | 23,274 |
Pension benefits |  |  | 5,327 |  |  |  | 7,639 |
Prepaid expenses |  |  | 15,040 |  |  |  | 15,886 |
Deferred revenue |  |  | 5,902 |  |  |  | 2,146 |
Stock-based compensation |  |  | 19,684 |  |  |  | 19,486 |
Other reserves not currently deductible |  |  | 19,604 |  |  |  | 14,689 |
Amortization of intangible assets |  |  | 90,888 |  |  |  | 130,825 |
Research and development and other tax credits |  |  | 64,618 |  |  |  | 78,862 |
Lease liabilities |  |  | 50,102 |  |  |  | 46,672 |
Fixed assets |  |  | 83,796 |  |  |  | 78,249 |
Capital loss carryforward |  |  | 3,700 |  |  |  | 3,955 |
Other |  |  | 2,279 |  |  |  | 1,256 |
Gross deferred tax assets |  |  | 470,710 |  |  |  | 477,885 |
Valuation allowance |  | $ | (21,695 | ) |  | $ | (22,283 | )
Total deferred tax assets |  |  | 449,015 |  |  |  | 455,602 |
Deferred tax liabilities: |  |  |  |  |  |
Acquired intangible assets not deductible |  | $ | (263,178 | ) |  | $ | (118,360 | )
Lease assets |  |  | (37,332 | ) |  |  | (36,940 | )
Pension prepayments |  |  | (1,808 | ) |  |  | (2,622 | )
Deferred revenue |  |  | (17,400 | ) |  |  | (35,193 | )
Depreciation |  |  | (5,779 | ) |  |  | (6,937 | )
Deferred income |  |  | (8,656 | ) |  |  | (5,991 | )
Prepaid commissions |  |  | (13,757 | ) |  |  | (13,356 | )
Other |  |  | (7,294 | ) |  |  | (8,508 | )
Total deferred tax liabilities |  |  | (355,204 | ) |  |  | (227,907 | )
Net deferred tax assets |  | $ | 93,811 |  |  | $ | 227,695 |
Summary of Valuation Allowance | The changes to the valuation allowance were primarily due to the following:
(in thousands) |  | Year ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Valuation allowance, beginning of year |  | $ | 22,283 |  |  | $ | 52,085 |  |  | $ | 205,423 |
Net release of valuation allowance(1) |  |  | — |  |  |  | — |  |  |  | (134,235 | )
Net decrease in deferred tax assets with a full valuation allowance(2) |  |  | (588 | ) |  |  | (29,802 | ) |  |  | (19,103 | )
Valuation allowance, end of year |  | $ | 21,695 |  |  | $ | 22,283 |  |  | $ | 52,085 |
(1) In 2021, this is attributable to the release in the United States. (2) In 2022, this change included the loss of foreign attributes upon liquidation of a foreign subsidiary. In 2021, this change includes the loss of state attributes upon merger of two wholly-owned subsidiaries.
Schedule of Unrecognized Tax Benefit |
|  | Year ended September 30, |
Unrecognized tax benefits (in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Unrecognized tax benefit, beginning of year |  | $ | 23,923 |  |  | $ | 21,166 |  |  | $ | 16,107 |
Tax positions related to current year: |  |  |  |  |  |  |  |  |
Additions |  |  | 7,075 |  |  |  | 3,144 |  |  |  | 4,844 |
Tax positions related to prior years: |  |  |  |  |  |  |  |  |
Additions |  |  | 20,855 |  |  |  | 785 |  |  |  | 30,130 |
Reductions |  |  | — |  |  |  | (1,172 | ) |  |  | (478 | )
Settlements |  |  | — |  |  |  | — |  |  |  | (29,437 | )
Statute expirations |  |  | (1,111 | ) |  |  | — |  |  |  | — |
Unrecognized tax benefit, end of year |  | $ | 50,742 |  |  | $ | 23,923 |  |  | $ | 21,166 |
Summary of Income Tax Examinations Years | As of September 30, 2023, we remained subject to examination in the following major tax jurisdictions for the tax years indicated:
Major Tax Jurisdiction |  | Open Years
United States |  | 2020 through 2023
Germany |  | 2015 through 2023
France |  | 2020 through 2023
Japan |  | 2018 through 2023
Ireland |  | 2019 through 2023

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482663/740-10-55-217 + Details
Name: | us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration