Income Taxes

6 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 5. Income Taxes

The effective tax rate for the three and six months ended March 31, 2022 was 4.2% and 21.2%, respectively. The effective tax rate for both periods was impacted by (i) benefits from research and development tax credits, partially offset by (ii) the inclusion of state taxes, (iii) income derived from certain foreign jurisdictions subject to higher tax rates and (iv) the exclusion of tax benefits related to losses recorded by certain foreign operations. The lower tax rate in the three months ended March 31, 2022 was primarily due to the disproportionate impact of research and development tax credits due to reduced pre-tax income as a result of restructuring and other costs in the period.

The effective tax rate for the three and six months ended March 31, 2021 was 21.0% and 23.2%, respectively. The effective tax rate for both periods was impacted by (i) the inclusion of state taxes, (ii) tax expense related to stock-based compensation, (iii) the exclusion of tax benefits related to losses recorded by certain foreign operations, partially offset by (iv) tax benefit related to remeasurement of deferred taxes as a result of a state law change and (v) research and development tax credits.

During the six months ended March 31, 2022 and March 31, 2021, cash paid for income taxes, net of refunds, were $55.8 million and $82.2 million, respectively.