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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2012

Income Tax Expense (Benefit) [Abstract]

Summary Of Income (Loss) Before Income Taxes

Our income (loss) before income taxes consisted of the following:



	Year ended September 30,
	2012			2011			2010
	(in thousands)
Domestic	$	(11,422	)	$	(23,984	)	$	(31,837	)
Foreign	132,158			128,532			113,973
Total income before income taxes	$	120,736		$	104,548		$	82,136

Schedule Of Provision For (Benefit From) Income Taxes

Our provision for income taxes consisted of the following:



	Year ended September 30,
	2012			2011			2010
	(in thousands)
Current:
Federal	$	8,534		$	22,849		$	5,755
State	1,733			(192		)	(177		)
Foreign	41,101			31,530			30,192
	51,368			54,187			35,770
Deferred:
Federal	106,041			(31,303		)	30,570
State	7,706			(2,176		)	733
Foreign	(8,981		)	(1,584		)	(9,305		)
	104,766			(35,063		)	21,998
Total provision for income taxes	$	156,134		$	19,124		$	57,768

Summary Of Federal Income Tax Rate And Effective Income Tax Rate

The reconciliation between the statutory federal income tax rate and our effective income tax rate is shown below:



	Year ended September 30,
	2012		2011		2010
Statutory federal income tax rate	35	%	35	%	35	%
Change in valuation allowance	103	%	3	%	4	%
State income taxes, net of federal tax benefit	—	%	(2	)%	1	%
Federal and state research and development credits	(1	)%	(5	)%	(1	)%
Tax audit and examination settlements	1	%	—	%	1	%
Foreign rate differences	(16	)%	(15	)%	(26	)%
Subsidiary reorganization	3	%	1	%	53	%
Other, net	4	%	1	%	3	%
Effective income tax rate	129	%	18	%	70	%

Schedule Of Deferred Tax Assets And Liabilities

The significant temporary differences that created deferred tax assets and liabilities are shown below:



	September 30,
	2012			2011
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	23,879		$	29,785
Foreign tax credits	—			5,403
Capitalized research and development expense	59,562			66,957
Pension benefits	29,651			25,431
Deferred maintenance revenue	34,618			13,786
Stock-based compensation	17,137			15,723
Accrual for litigation	16,310			17,893
Other reserves not currently deductible	18,083			15,728
Amortization of intangible assets	10,658			7,552
Other tax credits	23,899			20,432
Depreciation	5,582			4,816
Other	8,464			6,859
Gross deferred tax assets	247,843			230,365
Valuation allowance	(170,404		)	(38,600		)
Total deferred tax assets	77,439			191,765
Deferred tax liabilities:
Acquired intangible assets not deductible	(53,030		)	(58,303		)
Pension prepayments	(12,475		)	(10,957		)
Other	(651		)	(649		)
Total deferred tax liabilities	(66,156		)	(69,909		)
Net deferred tax assets	$	11,283		$	121,856

Summary Of Valuation Allowance

The changes to the valuation allowance were primarily due to:



	Year ended September 30,
	2012			2011			2010
	(in millions)
Valuation allowance beginning of year	$	38.6		$	40.5		$	46.3
Net release of valuation allowance (1)	—			(2.4		)	(16.8		)
Establish valuation allowance in the U.S.	124.5			—			4.8
Net increase in deferred tax assets for foreign jurisdictions with a full valuation allowance	—			—			2.8
Net decrease in deferred tax assets for foreign jurisdictions with a full valuation allowance	(2.1		)	(0.8		)	(0.3		)
Establish valuation allowance in foreign jurisdictions	0.6			—			—
Adjust deferred tax asset and valuation allowance in the U.S. primarily for tax credits	8.8			1.3			3.7
Valuation allowance end of year	$	170.4		$	38.6		$	40.5

(1)

In 2011 and 2010, this net reduction is primarily attributed to the release of the valuation allowance on foreign tax credits in the U.S. In both 2011 and 2010, this was the result of the subsidiary reorganizations described previously. As such, the current year change is included in subsidiary reorganization in the reconciliation between our statutory income tax rate and our effective income tax rate.

Schedule Of Unrecognized Tax Benefit

Changes in the unrecognized tax benefit were due to:



	Year ended September 30,
	2012				2011			2010
	(in millions)
Unrecognized tax benefit beginning of year	$	16.2			$	15.9		$	16.9
Tax positions related to current year	3.4				1.1			1.2
Tax positions related to prior years	0.9				(0.8		)	(2.2		)
Statute expirations	(1.4		)	—	—			—
Unrecognized tax benefit end of year	$	19.1			$	16.2		$	15.9

Summary Of Income Tax Examinations Years

As of September 30, 2012, we remained subject to examination in the following major tax jurisdictions for the tax years indicated:



Major Tax Jurisdiction		Open Years
United States		2009 through 2012
Germany		2007 through 2012
France		2009 through 2012
Japan		2006 through 2012
Ireland		2008 through 2012

- Definition

Tabular disclosure of 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 (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details

- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

+ References+ Details

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References+ Details