Income Taxes

9 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three months ended June 30, 2020 was 21.9% compared to 28.7% for the comparable period in the prior year. The effective tax rate for the three months ended June 30, 2020 was favorably impacted primarily by an increased projected benefit for the deduction attributed to foreign derived intangible income (“FDII”) as well as larger unfavorable impacts from discrete items in the prior comparable period.

The effective tax rate for the nine months ended June 30, 2020 was 17.8% compared to 20.3% for the comparable period in the prior year. The effective tax rate for the nine months ended June 30, 2020 was favorably impacted primarily by an increased projected benefit for the deduction attributed to FDII as well as a small benefit from current year discrete items. The effective tax rate for the nine months ended June 30, 2020 was also favorably impacted by the reduction of the contingent consideration accrual of $8.4 million, that is not subject to tax.

Included in the third quarter of fiscal 2020 tax provision is additional tax expense of $4.1 million as a result of a change in the taxable gain from the disposition of certain of our surgical consumable products and related assets, which occurred in August 2019.