Income Taxes

9 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

(in thousands)	Three months ended						Nine months ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Income before income taxes	$	76,526		$	100,778		$	244,019		$	259,720
Provision for income taxes	$	15,128		$	30,302		$	44,082		$	53,476
Effective income tax rate		20	%		30	%		18	%		21	%

The effective tax rate for the three and nine months ended June 30, 2023 was lower than the effective tax rate for the corresponding prior-year periods primarily due to $8.1 million of tax expense in the quarter ended June 30, 2022 arising from the basis difference on goodwill related to the sale of a portion of our PLM business.

In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the Internal Revenue Service in the U.S. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. We are currently under audit by tax authorities in several jurisdictions. Audits by tax authorities typically involve examination of the deductibility of certain permanent items, transfer pricing, limitations on net operating losses and tax credits.