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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of the following:

		Year Ended September 30,
		2018				2017				2016
Current		$	42,047			$	69,535			$	77,682
Deferred			25,098				6,551				(2,315	)
		$	67,145			$	76,086			$	75,367

Components of Deferred Tax Assets and Liabilities

Deferred income taxes are comprised of the following components:

		As of September 30,
		2018				2017
Deferred tax assets:
Deferred revenue		$	30,596			$	44,571
Employee compensation and benefits			72,218				87,204
Intangible assets, computer software and intellectual property			9,793				14,997
Tax credits, net capital and operating loss carryforwards			184,450				155,478
Other			49,732				78,114
Total deferred tax assets			346,789				380,364
Valuation allowances			(112,727	)			(94,573	)
Total deferred tax assets, net			234,062				285,791
Deferred tax liabilities:
Anticipated withholdings on subsidiaries’ earnings			(68,394	)			(74,419	)
Intangible assets, computer software and intellectual property			(114,094	)			(136,238	)
Other			(31,750	)			(32,736	)
Total deferred tax liabilities			(214,238	)			(243,393	)
Net deferred tax assets		$	19,824			$	42,398

Effective Income Tax Rate Varied from Statutory Guernsey Tax Rate

The effective income tax rate varied from the statutory Guernsey tax rate as follows:

		Year Ended September 30,
		2018				2017				2016
Statutory Guernsey tax rate			0	%			0	%			0	%
Foreign taxes(1)			15.9				14.8				15.5
Effective income tax rate			15.9	%			14.8	%			15.5	%

As a Guernsey company subject to a corporate tax rate of zero percent, the Company’s overall effective tax rate is attributable to foreign taxes. The Company’s income before income tax expense is considered to be foreign income.

(1) In fiscal year 2018, foreign taxes included a benefit of $9,564 due to conclusions of tax audits in certain jurisdictions, which resulted in an increase to the Company’s tax credits carryforwards and a reduction to the Company’s provision for gross unrecognized tax benefits. In addition, foreign taxes in fiscal year 2018 included a benefit of $18,022 that was attributable to the expiration of the periods set forth in statutes of limitations related to unrecognized tax benefits accumulated over several years in certain jurisdictions. Foreign taxes in fiscal year 2018 also included a tax expenses of $12,032 resulting from the creation of valuation allowances on deferred tax assets at certain of the Company’s subsidiaries, which may not be realized based on the Company’s projections of future taxable income.

In addition, foreign taxes in fiscal year 2018 included a provisional expense of $2,321 relating to changes in tax law in the United States pursuant to SAB No. 118 (see Note 2). The provisional expense is attributable to deemed repatriation of foreign income partially offset by a benefit resulting from the re-evaluation of the Company’s deferred tax assets and liabilities due to the expected lower blended effective U.S. federal tax rate when the assets and liabilities are expected to be utilized.

As an indirect consequence to the changes in tax law in the United States the Company no longer makes a permanently reinvest assertion relating to one of its subsidiaries, therefore, a provisional tax liability of $4,059 was recorded related to the tax implications of remitting earnings that were previously asserted as permanently reinvested.

During fiscal year 2018, as a result of funding decisions for the construction of the Company’s new campus in Israel, see also Note 2, the Company recorded a tax benefit of $28,795 related to the release of withholding and income tax reserves for unremitted earnings.

In fiscal year 2017, foreign taxes included a benefit of $9,450 due to conclusions of tax audits in certain jurisdictions, which resulted in a reduction to the Company’s provision for gross unrecognized tax benefits. Foreign taxes in fiscal year 2017 also included a net benefit of $11,037 due to a reduction of taxes payable, partially offset by a reduction of deferred tax asset on operating loss carryforwards of certain of the Company’s subsidiaries resulting from internal structural changes in certain jurisdictions in which the Company operates. In addition, foreign taxes in fiscal year 2017 included a benefit of $28,774 that was attributable to the expiration of the periods set forth in statutes of limitations related to unrecognized tax benefits accumulated over several years in certain jurisdictions. Foreign taxes in fiscal year 2017 also included a benefit of $12,754 resulting from the release of valuation allowances on deferred tax assets at certain of the Company’s subsidiaries, which will, more likely than not, be realized due to the Company’s projections of future taxable income.

Aggregate Changes in Balance of Company's Gross Unrecognized Tax Benefits

The aggregate changes in the balance of the Company’s gross unrecognized tax benefits were as follows:

		Year Ended September 30,
		2018				2017				2016
Balance at beginning of fiscal year		$	193,024			$	196,668			$	126,706
Additions based on tax positions related to the current year			20,329				22,319				65,009
Additions (reduction) for tax positions of prior years			(3,805	)			12,261				41,183
Settlements with tax authorities			(3,880	)			(9,450	)			(31,624	)
Lapse of statute of limitations			(18,022	)			(28,774	)			(4,606	)
Balance at end of fiscal year		$	187,646			$	193,024			$	196,668

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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.

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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.

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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.

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