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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2022
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,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Current provision/(benefit): |  |  |  |  |
Federal | $ | 45,042 |  |  | $ | 62,062 |  |  | $ | 65,735 |
State and local | 15,371 |  |  | 20,077 |  |  | 28,117 |
Foreign | 2,653 |  |  | 16,919 |  |  | (2,154) |
Total current provision for income taxes | 63,066 |  |  | 99,058 |  |  | 91,698 |
Deferred tax expense/(benefit): |  |  |  |  |
Federal | 7,107 |  |  | (2,527) |  |  | (12,984) |
State and local | 2,130 |  |  | (590) |  |  | (4,246) |
Foreign | 967 |  |  | (3,460) |  |  | (1,915) |
Total deferred tax expense/(benefit) | 10,204 |  |  | (6,577) |  |  | (19,145) |
Provision for income taxes | $ | 73,270 |  |  | $ | 92,481 |  |  | $ | 72,553 |
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,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Domestic | $ | 274,641 |  |  | $ | 339,647 |  |  | $ | 304,240 |
Foreign | 2,457 |  |  | 44,034 |  |  | (17,178) |
Income before provision for income taxes | $ | 277,098 |  |  | $ | 383,681 |  |  | $ | 287,062 |
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,
| 2022 |  | 2021 |  | 2020
| (dollars in thousands)
Tax expense at statutory rate | $ | 58,190 |  |  | $ | 80,573 |  |  | $ | 60,284 |
Increase/(decrease) due to: |  |  |  |  |
State income taxes, net of federal benefit | 14,244 |  |  | 18,350 |  |  | 17,480 |
Foreign taxation rate differentials | (709) |  |  | 4,212 |  |  | (463) |
Non-deductible expenses | 882 |  |  | 2,254 |  |  | 2,200 |
Valuation allowance - foreign jurisdictions | 4,875 |  |  | 2,285 |  |  | 916 |
Tax credits | (5,239) |  |  | (5,072) |  |  | (4,149) |
Excess tax expense/(benefits) from stock-based compensation | 1,143 |  |  | (6,008) |  |  | (2,038) |
Other | (116) |  |  | (4,113) |  |  | (1,677) |
Income tax expense | $ | 73,270 |  |  | $ | 92,481 |  |  | $ | 72,553 |
U.S Federal Statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effective tax rate | 26.4 | % |  | 24.1 | % |  | 25.3 | %
Schedule of Deferred Tax Assets and Liabilities |
Table 11.4: Components of Deferred Tax Assets and Liabilities
| As of September 30,
| 2022 |  | 2021
| (in thousands)
Deferred tax assets/(liabilities): |  |  |
Costs deductible in future periods | $ | 36,604 |  |  | $ | 28,921 |
Deferred revenue | 7,273 |  |  | 7,878 |
Stock compensation | 4,918 |  |  | 3,679 |
Capital loss carryforward | 2,391 |  |  | — |
Net operating loss carryforwards | 6,666 |  |  | 3,618 |
Amortization of goodwill and intangibles | (198,903) |  |  | (203,094) |
Capitalized software | (15,445) |  |  | (11,343) |
Accounts receivable - unbilled | (12,087) |  |  | (15,317) |
Property and equipment | (2,577) |  |  | (910) |
Prepaid expenses | (11,522) |  |  | (7,913) |
Financial instruments | (8,261) |  |  | 107 |
Valuation allowance | (8,075) |  |  | (3,200) |
Other | (2,111) |  |  | 3,926 |
Net deferred tax liability | $ | (201,129) |  |  | $ | (193,648) |
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,
| 2022 |  | 2021
| (in thousands)
Total of tax jurisdictions with net deferred tax assets | $ | 4,970 |  |  | $ | 990 |
Total of tax jurisdictions with net deferred tax liabilities | (206,099) |  |  | (194,638) |
Net deferred tax liabilities | $ | (201,129) |  |  | $ | (193,648) |
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,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Balance at beginning of year | $ | 12,642 |  |  | $ | 1,798 |  |  | $ | 3,001 |
Additions for acquired unrecognized tax benefits | — |  |  | 11,244 |  |  | — |
Decreases for lapse of statue of limitations | (1,412) |  |  | — |  |  | — |
Decreases for settlements with taxing authorities | (4,785) |  |  | — |  |  | — |
Increases for tax positions taken in current year | 2,231 |  |  | 300 |  |  | 770 |
Decreases for tax positions taken in current year | — |  |  | (700) |  |  | (1,973) |
Balance at end of year | $ | 8,676 |  |  | $ | 12,642 |  |  | $ | 1,798 |

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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 https://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 https://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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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