Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for (benefit from) income taxes on income (loss) from continuing operations before income taxes consists of the following (in thousands):

	Fiscal
	2017			2016			2015
Currently payable:
Federal	$	5,617		$	(3,069	)	$	(932	)
State	1,022			89			108
Foreign	116,022			48,039			32,189
	122,661			45,059			31,365
Deferred and other:
Federal	1,413			(8,131		)	(4,327		)
State	(153		)	(439		)	(200		)
Foreign	(30,510		)	(1,095		)	(3,679		)
	(29,250		)	(9,665		)	(8,206		)
Provision for income taxes	$	93,411		$	35,394		$	23,159

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) from continuing operations before income taxes consist of (in thousands):

	Fiscal
	2017		2016			2015
United States	$	25,540	$	(44,029	)	$	(13,293	)
Foreign	276,515		166,925			112,861
Income from continuing operations before income taxes	$	302,055	$	122,896		$	99,568

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the income tax expense at the U.S. Federal statutory rate (35.0%) to actual income tax expense is as follows (in thousands):

	Fiscal
	2017			2016			2015
Federal statutory tax expense	$	105,719		$	43,015		$	34,849
Valuation allowance	4,454			1,441			635
Foreign taxes at rates less than U.S. rates, net	(12,346		)	(5,642		)	(10,558		)
Stock-based compensation	3,969			2,161			2,150
State income taxes, net of federal income tax benefit	398			(198		)	(38		)
Research and development credit	(7,884		)	(4,408		)	(2,979		)
Deferred compensation	(1,022		)	(428		)	(133		)
Release of foreign unrecognized tax benefits	(538		)	(4,961		)	(39		)
Release of interest accrued for unrecognized tax benefits	(78		)	(1,508		)	(38		)
Reversal of Competent Authority	—			4,328			—
Other	739			1,594			(690		)
Provision for income taxes	$	93,411		$	35,394		$	23,159
Effective tax rate	30.9		%	28.8		%	23.3		%

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were (in thousands):

	Fiscal year-end
	2017			2016
Deferred tax assets:
Reserves and accruals not currently deductible	$	52,803		$	34,800
Operating loss carryforwards and tax credits	61,371			52,213
Deferred service revenue	2,987			2,186
Inventory capitalization	7,116			5,001
Stock-based compensation	7,839			6,428
Competent authority offset to transfer pricing tax reserves	12,948			1,437
Depreciation and amortization	—			1,043
Other	4,567			5,277
Total gross deferred tax assets	149,631			108,385
Valuation allowance	(28,745		)	(17,642		)
Total net deferred tax assets	120,886			90,743
Deferred tax liabilities:
Gain on issuance of stock by subsidiary	22,378			20,781
Depreciation and amortization	60,956			—
Accumulated translation adjustment	234			4,273
Total gross deferred tax liabilities	83,568			25,054
Net deferred tax assets	$	37,318		$	65,689

Schedule of Deferred Tax Assets

The net deferred tax asset is classified on the consolidated balance sheets as follows (in thousands):

	Fiscal year-end
	2017			2016
Non-current deferred income tax assets	$	82,691		$	67,157
Non-current deferred income tax liabilities	(45,373		)	(1,468		)
Net deferred tax assets	$	37,318		$	65,689

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

	Fiscal year-end
	2017			2016			2015
Balance as of the beginning of the year	$	20,442		$	22,538		$	21,893
Increase related to acquisitions	25,151			—			—
Tax positions related to current year:
Additions	1,326			2,468			311
Reductions	—			—			—
Tax positions related to prior year:
Additions	4,951			424			855
Reductions	(65		)	(3,239		)	—
Settlements	—			(1,655		)	—
Lapses in statutes of limitations	(610		)	(94		)	(521		)
Decrease in unrecognized tax benefits based on audit results	(5,217		)	—			—
Foreign currency revaluation adjustment	1,588			—			—
Balance as of end of year	$	47,566		$	20,442		$	22,538

Summary of Income Tax Examinations

A summary of the fiscal tax years that remain subject to examination, as of September 30, 2017, for our major tax jurisdictions is:

United States—Federal	2011—forward
United States—Various States	2013—forward
Netherlands	2012—forward
Germany	2011—forward
Japan	2011—forward
South Korea	2012—forward
United Kingdom	2016—forward