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Income taxes (Tables) | 12 Months Ended
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Sep. 30, 2021
Income Tax Disclosure [Abstract] |
Provision for income taxes |
Table 13.1: Components of Provision for Income Taxes
| For the Year Ended September 30,
| 2021 |  | 2020 |  | 2019
| (in thousands)
Current provision/(benefit): |  |  |  |  |
Federal | $ | 62,062 |  |  | $ | 65,735 |  |  | $ | 37,123 |
State and local | 20,077 |  |  | 28,117 |  |  | 14,480 |
Foreign | 16,919 |  |  | (2,154) |  |  | 12,561 |
Total current provision for income taxes | 99,058 |  |  | 91,698 |  |  | 64,164 |
Deferred tax (benefit)/expense: |  |  |  |  |
Federal | (2,527) |  |  | (12,984) |  |  | 12,627 |
State and local | (590) |  |  | (4,246) |  |  | 3,013 |
Foreign | (3,460) |  |  | (1,915) |  |  | (2,979) |
Total deferred tax (benefit)/expense | (6,577) |  |  | (19,145) |  |  | 12,661 |
Provision for income taxes | $ | 92,481 |  |  | $ | 72,553 |  |  | $ | 76,825 |
Components of income from continuing operations before income taxes |
Table 13.2: Components of Income before Provision for Income Taxes by Country
| For the Year Ended September 30,
| 2021 |  | 2020 |  | 2019
| (in thousands)
Domestic | $ | 339,647 |  |  | $ | 304,240 |  |  | $ | 280,092 |
Foreign | 44,034 |  |  | (17,178) |  |  | 37,228 |
Income before provision for income taxes | $ | 383,681 |  |  | $ | 287,062 |  |  | $ | 317,320 |
Reconciliation of tax provision using the federal statutory income tax rate to reported provision |
Table 13.3: Reconciliation of Tax Expense at Statutory Rate to Actual Tax Expense
| For the Year Ended September 30,
| 2021 |  | 2020 |  | 2019
| (dollars in thousands)
Tax expense at statutory rate | $ | 80,573 |  |  | $ | 60,284 |  |  | $ | 66,637 |
Increase/(decrease) due to: |  |  |  |  |
State income taxes, net of federal benefit | 18,350 |  |  | 17,480 |  |  | 14,825 |
Foreign taxation rate differentials | 4,212 |  |  | (463) |  |  | 1,210 |
Non-deductible (benefit)/expense | 2,254 |  |  | 2,200 |  |  | 2,682 |
Valuation allowance - foreign jurisdictions | 2,285 |  |  | 916 |  |  | — |
Tax credits | (5,072) |  |  | (4,149) |  |  | (3,730) |
Toll tax | — |  |  | — |  |  | (481) |
Excess tax benefits from stock-based compensation | (6,008) |  |  | (2,038) |  |  | (4,783) |
Other | (4,113) |  |  | (1,677) |  |  | 465 |
Income tax expense | $ | 92,481 |  |  | $ | 72,553 |  |  | $ | 76,825 |
U.S Federal Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effective tax rate | 24.1 | % |  | 25.3 | % |  | 24.2 | %
Significant items comprising the Company's deferred tax assets and liabilities |
Table 13.4: Components of Deferred Tax Assets and Liabilities
| As of September 30,
| 2021 |  | 2020
| (in thousands)
Deferred tax assets/(liabilities): |  |  |
Costs deductible in future periods | $ | 28,921 |  |  | $ | 24,127 |
Deferred revenue | 7,878 |  |  | 8,054 |
Stock compensation | 3,679 |  |  | 4,140 |
Net operating loss carryforwards | 418 |  |  | 252 |
Amortization of goodwill and intangibles | (203,094) |  |  | (27,555) |
Capitalized software | (11,343) |  |  | (10,076) |
Accounts receivable - unbilled | (15,317) |  |  | (11,565) |
Property and equipment | (910) |  |  | (2,365) |
Prepaid expenses | (7,913) |  |  | (4,245) |
Other | 4,033 |  |  | (3,589) |
Net deferred tax liability | $ | (193,648) |  |  | $ | (22,822) |
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 13.5: Deferred Tax Assets and Liabilities By Jurisdiction Positions
| As of September 30,
| 2021 |  | 2020
| (in thousands)
Total of tax jurisdictions with net deferred tax assets | $ | 990 |  |  | $ | 1,915 |
Total of tax jurisdictions with net deferred tax liabilities | (194,638) |  |  | (24,737) |
Net deferred tax liabilities | $ | (193,648) |  |  | $ | (22,822) |
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits |
Table 13.6: Reconciliation of the Beginning and Ending Amounts of Potential Tax Benefits
| For the Year Ended September 30,
| 2021 |  | 2020 |  | 2019
| (in thousands)
Balance at beginning of year | $ | 1,798 |  |  | $ | 3,001 |  |  | $ | 721 |
Additions for acquired unrecognized tax benefits | 11,244 |  |  | — |  |  | — |
Increases for tax positions taken in current year | 300 |  |  | 770 |  |  | 2,280 |
Decreases for tax positions taken in current year | (700) |  |  | (1,973) |  |  | — |
Balance at end of year | $ | 12,642 |  |  | $ | 1,798 |  |  | $ | 3,001 |

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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