Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Summary of Income (Loss) Before Income Taxes

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

(in thousands)	Year ended September 30,
	2023			2022		2021
Domestic	$	(49,193	)	$	97,460	$	41,199
Foreign		381,759			299,638		350,556
Total income before income taxes	$	332,566		$	397,098	$	391,755

Schedule of Provision For (Benefit From) Income Taxes

Our Provision (benefit) for income taxes consisted of the following:

(in thousands)	Year ended September 30,
	2023			2022			2021
Current:
Federal	$	7,311		$	767		$	4,774
State		10,020			6,675			1,609
Foreign		53,019			33,612			66,554
		70,350			41,054			72,937
Deferred:
Federal		(11,821	)		25,730			(152,311	)
State		(10,028	)		(3,177	)		(27,228	)
Foreign		38,525			20,410			21,434
		16,676			42,963			(158,105	)
Provision (benefit) for income taxes	$	87,026		$	84,017		$	(85,168	)

Summary of Federal Income Tax Rate and Effective Income Tax Rate

Taxes computed at the statutory federal income tax rates are reconciled to the Provision (benefit) for income taxes as follows:

(in thousands)	Year ended September 30,
	2023					2022					2021
Statutory federal income tax rate	$	69,839		21	%	$	83,391		21	%	$	82,268		21	%
Change in valuation allowance		—		—			—		—			(134,695	)	(34	)%
State income taxes, net of federal tax benefit		577		0	%		6,518		2	%		(28,768	)	(8	)%
Federal research and development credits		(7,751	)	(2	)%		(7,477	)	(2	)%		(5,764	)	(2	)%
Uncertain tax positions		23,302		7	%		2,418		1	%		3,398		1	%
Foreign tax credit		(11,415	)	(3	)%		(9,078	)	(2	)%		(35,368	)	(9	)%
Foreign rate differences		(20,829	)	(6	)%		(8,982	)	(2	)%		(34,584	)	(9	)%
Foreign tax on U.S. provision		11,415		3	%		9,078		2	%		5,931		2	%
Excess tax benefits from restricted stock		(6,963	)	(2	)%		(8,278	)	(2	)%		(6,141	)	(2	)%
Audits and settlements		—		—			—		—			33,370		9	%
U.S. permanent items		5,341		2	%		3,453		—			7,449		2	%
Non-deductible compensation		8,344		3	%		11,851		3	%		10,940		3	%
Base Erosion Anti-Abuse Tax (BEAT)		—		—			—		—			2,936		1	%
GILTI, net of foreign tax credits		17,861		5	%		2,705		1	%		18,217		4	%
Foreign-Derived Intangible Income (FDII)		(8,987	)	(3	)%		(6,848	)	(2	)%		(4,428	)	(1	)%
Non-deductible imputed interest		6,292		2	%		—		—			—		—
Sale of a portion of the PLM services business		—		—			6,844		2	%		—		—
Other, net		—		(1	)%		(1,578	)	(1	)%		71		—
Provision (benefit) for income taxes	$	87,026		26	%	$	84,017		21	%	$	(85,168	)	(22	)%

Schedule of Deferred Tax Assets and Liabilities

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

(in thousands)	September 30,
	2023			2022
Deferred tax assets:
Net operating loss carryforwards	$	22,272		$	40,419
Foreign tax credits		3,750			14,527
Capitalized research and development		83,748			23,274
Pension benefits		5,327			7,639
Prepaid expenses		15,040			15,886
Deferred revenue		5,902			2,146
Stock-based compensation		19,684			19,486
Other reserves not currently deductible		19,604			14,689
Amortization of intangible assets		90,888			130,825
Research and development and other tax credits		64,618			78,862
Lease liabilities		50,102			46,672
Fixed assets		83,796			78,249
Capital loss carryforward		3,700			3,955
Other		2,279			1,256
Gross deferred tax assets		470,710			477,885
Valuation allowance	$	(21,695	)	$	(22,283	)
Total deferred tax assets		449,015			455,602
Deferred tax liabilities:
Acquired intangible assets not deductible	$	(263,178	)	$	(118,360	)
Lease assets		(37,332	)		(36,940	)
Pension prepayments		(1,808	)		(2,622	)
Deferred revenue		(17,400	)		(35,193	)
Depreciation		(5,779	)		(6,937	)
Deferred income		(8,656	)		(5,991	)
Prepaid commissions		(13,757	)		(13,356	)
Other		(7,294	)		(8,508	)
Total deferred tax liabilities		(355,204	)		(227,907	)
Net deferred tax assets	$	93,811		$	227,695

Summary of Valuation Allowance

The changes to the valuation allowance were primarily due to the following:

(in thousands)	Year ended September 30,
	2023			2022			2021
Valuation allowance, beginning of year	$	22,283		$	52,085		$	205,423
Net release of valuation allowance(1)		—			—			(134,235	)
Net decrease in deferred tax assets with a full valuation allowance(2)		(588	)		(29,802	)		(19,103	)
Valuation allowance, end of year	$	21,695		$	22,283		$	52,085

(1)In 2021, this is attributable to the release in the United States.

(2)In 2022, this change included the loss of foreign attributes upon liquidation of a foreign subsidiary. In 2021, this change includes the loss of state attributes upon merger of two wholly-owned subsidiaries.

Schedule of Unrecognized Tax Benefit

	Year ended September 30,
Unrecognized tax benefits (in thousands)	2023			2022			2021
Unrecognized tax benefit, beginning of year	$	23,923		$	21,166		$	16,107
Tax positions related to current year:
Additions		7,075			3,144			4,844
Tax positions related to prior years:
Additions		20,855			785			30,130
Reductions		—			(1,172	)		(478	)
Settlements		—			—			(29,437	)
Statute expirations		(1,111	)		—			—
Unrecognized tax benefit, end of year	$	50,742		$	23,923		$	21,166

Summary of Income Tax Examinations Years

As of September 30, 2023, we remained subject to examination in the following major tax jurisdictions for the tax years indicated:

Major Tax Jurisdiction	Open Years
United States	2020 through 2023
Germany	2015 through 2023
France	2020 through 2023
Japan	2018 through 2023
Ireland	2019 through 2023