Income Taxes

9 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 15. Income Taxes

The Company’s income tax provision was $12.1 million and $18.9 million for the three months ended December 31, 2021 and 2020, respectively. The Company’s income tax provision was $39.6 million and $46.1 million for the nine months ended December 31, 2021 and 2020, respectively. The Company’s effective tax rate was 21% and 23.4% for the three months ended December 31, 2021 and 2020, respectively. The Company’s effective tax rate was 34.2% and 21.4% for the nine months ended December 31, 2021 and 2020, respectively. The effective tax rate differs from the statutory federal income tax rate of 21% for the three months ended December 31, 2021 and 2020 primarily due to state and foreign income taxes and permanent differences offset by credits and excess tax benefits. The Company recognized excess tax benefits associated with stock-based awards of $0.3 million and $1.9 million for the three months ended December 31, 2021 and 2020, respectively. The effective tax rate differs from the statutory federal income tax rate of 21% for the nine months ended December 31, 2021, 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 stock-based compensation. The effective tax rate differs from the statutory federal income tax rate of 21% for the nine months ended December 31, 2020, primarily due state and foreign income taxes and permanent differences offset by credits and excess tax benefits. The Company recognized excess tax benefits associated with stock-based awards of $10.1 million and $10.4 million for the nine months ended December 31, 2021 and 2020, respectively.

The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. The outcome of these audits cannot be predicted with certainty. During the nine months ended December 31, 2021, the Company closed an income tax audit in Germany which covered fiscal years 2016 through 2019 with no material adjustments. The Company’s most recent completed income tax audit in the U.S. related to fiscal year 2016. All other tax years remain subject to examination by the federal, state and foreign tax authorities.