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Income Taxes
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company's tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items in the related period.
The effective tax rate was 16.4% and 22.0% for the three and nine months ended June 30, 2023, respectively, compared to 18.0% and 18.5% for the three and nine months ended June 30, 2022, respectively. The decrease in the effective tax rate for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022 is primarily due to a discrete impact from filing the Company’s fiscal year 2022 U.S. federal income tax return during the period ended June 30, 2023. The increase in the effective tax rate for the nine months ended June 30, 2023 as compared to the nine months ended June 30, 2022 is primarily due to the tax impact of stock-based compensation and foreign operations, partially offset by a discrete impact from filing the Company’s fiscal year 2022 U.S. federal income tax return during the period ended June 30, 2023.
At June 30, 2023, the Company had $73.2 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. It is anticipated that the Company’s existing liabilities for unrecognized tax benefits will change within the next twelve months due to audit settlements or the expiration of statutes of limitations. The Company does not expect these changes to be material to the consolidated financial statements. The Company recognizes interest and, if applicable, penalties for any uncertain tax positions as a component of income tax expense.
On July 21, 2023, the IRS issued Notice 2023-55 (the “Notice”) which provides guidance to taxpayers in determining whether a foreign tax is eligible for a U.S. foreign tax credit, specifically delaying until 2024 the application of foreign tax credit regulations that were issued in 2022. The Company is currently evaluating the impact of the Notice on its FY23 effective tax rate.
The Company and its subsidiaries are subject to U.S. federal income tax as well as the income tax of multiple state and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for fiscal years through September 30, 2018. Major jurisdictions where there are wholly owned subsidiaries of F5, Inc. which require income tax filings include the United Kingdom, Singapore, Israel, and India. The earliest periods open for review by local taxing authorities are fiscal years 2020 for the United Kingdom, 2018 for Singapore, 2013 for Israel, and 2019 for India. The Company is currently under audit by the Internal Revenue Service for fiscal year 2019, by various states for fiscal years 2015 through 2021, and by various foreign jurisdictions including Germany for fiscal years 2016 to 2019, India for fiscal years 2019 to 2022, Israel for fiscal years 2013 to 2017, Saudi Arabia for fiscal years 2015 to 2020, and Singapore for fiscal years 2019 to 2020.