Income Taxes

6 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 15. Income Taxes

The Company’s income tax provision was $10.3 million and $10.7 million for the three months ended September 30, 2021 and 2020, respectively. The Company’s income tax provision was $27.5 million and $27.2 million for the six months ended September 30, 2021 and 2020, respectively. The Company’s effective tax rate was 15.3% and 14.7% for the three months ended September 30, 2021 and 2020, respectively. The Company’s effective tax rate was 47.5% and 20.3% for the six months ended September 30, 2021 and 2020, respectively. The effective tax rate differs from the statutory federal income tax rate of 21% for the three months ended September 30, 2021 and 2020 primarily due to the recognition of excess tax benefits associated with stock-based awards of $6.2 million and $7.9 million as an income tax benefit for the three months ended September 30, 2021 and 2020, respectively. The effective tax rate differs from the statutory federal income tax rate of 21% for the six months ended September 30, 2021 and 2020 primarily due to a non-deductible charge for in-process research and development related to the preCARDIA acquisition offset by excess tax benefits related to share-based compensation.    The Company recognized excess tax benefits associated with stock-based awards of $9.8 million and $8.5 million for the six months ended September 30, 2021 and 2020, respectively.

The Company is subject to the examination of its income tax returns by the Internal Revenue Service (“IRS”) and other tax authorities. The outcome of these audits cannot be predicted with certainty. The Company’s most recent completed income tax audits were in the U.S. relating to fiscal year 2016 and in Germany, which covered fiscal years 2012 through 2015. These tax audits did not materially impact the financial statements. The Company is currently undergoing an income tax audit by the German tax authorities on Abiomed Europe GMBH and ECP for fiscal years 2016 through 2019. All other tax years remain subject to examination by the federal, state and foreign tax authorities.