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Income Taxes | 9 Months Ended
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Jun. 30, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | 14. Income Taxes For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to year-to-date pretax income (loss), excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. The Company recorded income tax (benefit) provision of ($2.6) million and $0.5 million for the three months ended June 30, 2018 and 2017, respectively. The Company recorded income tax (benefit) provision of ($2.8) million and $3.3 million for the nine months ended June 30, 2018 and 2017, respectively. In December 2017, the Tax Cuts and Jobs Act tax legislation was signed into law, which reduced the U.S. Federal statutory tax rate from 35% to 21%, among other changes. As a result of the enactment of this legislation, the tax provision for the first nine months of fiscal 2018 includes discrete tax expense of $1.2 million from the Company’s net deferred tax assets revaluation based on the enacted tax rate of 21%, as compared with the previous rate of 35%. U.S. tax law requires that taxpayers with a fiscal year beginning before and ending after the effective date of a rate change calculate a blended tax rate for the year based on the pro rata number of days in the year before and after such effective date. As a result, for the fiscal year ending September 30, 2018, our U.S. federal statutory income tax rate is expected to be 24.5%. The effective income tax rate for the three and nine months ended June 30, 2018 differs from the U.S. federal statutory tax rate of 24.5% primarily due to the favorable impacts of stock award exercises and increased U.S. federal research and development tax credits, as well as non-taxable contingent consideration gains and related unrealized foreign currency translation gains on Euro-denominated contingent consideration liabilities. These discrete benefits and non-taxable gains were partly offset by the aforementioned revaluation of deferred tax assets, non-deductible acquired intangible asset amortization, as well as operating losses incurred in Ireland, where tax benefits are offset by a valuation allowance. The effective income tax rate for the three and nine months ended June 30, 2017 differs from the U.S. federal statutory tax rate of 35% due to the operating losses incurred in Ireland and non-deductible acquired intangible asset amortization and unrealized foreign currency translation losses on Euro-denominated contingent consideration liabilities. These items were partly offset by non-taxable contingent consideration gains, the U.S. federal research and development income tax credit and the domestic production manufacturing deduction. The effective income tax rate for the three months ended June 30, 2018 was impacted by discrete tax benefit of $1.0 million related to share awards vested, expired, cancelled and exercised during the periods. The effective income tax rate for the nine months ended June 30, 2018 and 2017 was impacted by discrete tax benefit (expense) of $1.4 million and ($0.3) million, respectively, related to share awards vested, expired, cancelled and exercised during the periods. The total amount of unrecognized tax benefits, excluding interest and penalties that, if recognized, would affect the effective tax rate is $1.3 million and $1.2 million as of June 30, 2018 and September 30, 2017, respectively. Interest and penalties related to unrecognized tax benefits are recorded in the income tax provision. The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. U.S. income tax returns for years prior to fiscal 2015 are no longer subject to examination by federal tax authorities. For tax returns for state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2007. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2012. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical and NorMedix for periods prior to their respective acquisition dates, pursuant to the terms of the related share purchase agreements. As of June 30, 2018 and September 30, 2017, there were no undistributed earnings in foreign subsidiaries. The Internal Revenue Service (“IRS”) completed an examination of our fiscal 2016 U.S. federal income tax return in the third quarter of fiscal 2018, with a payment made in associated primarily with timing adjustments.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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