Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Abiomed Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Federal	25,893)	8,624)	—)	—)	752)	7,313)
State	9,184)	12,379)	6,563)	564)	1,491)	5,045)
Foreign	16,565)	12,312)	14,300)	11,525)	3,400)	1,066)
Current tax expense	51,642)	33,315)	20,863)	12,089)	5,643)	13,424)
Federal	5,376)	30,413)	33,239)	(7,153)	38,848)	23,008)
State	(1,720)	(2,382)	1,584)	(1,503)	(1,014)	(349)
Foreign	(1,243)	1,349)	(1,870)	911)	4,790)	3,144)
Deferred tax expense (benefit)	2,413)	29,380)	32,953)	(7,745)	42,624)	25,803)
Income tax provision	54,055)	62,695)	53,816)	4,344)	48,267)	39,227)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Abiomed Inc. current tax expense increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Abiomed Inc. deferred tax expense (benefit) decreased from 2020 to 2021 and from 2021 to 2022.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Abiomed Inc. income tax provision increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Abiomed Inc., effective income tax rate (EITR) reconciliation

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Statutory income tax rate	21.00%	21.00%	21.00%	21.00%	31.50%	35.00%
Credits	-11.30%	-6.00%	-10.80%	-1.50%	-4.90%	-3.30%
Non-deductible acquired IPR&D	10.50%	0.00%	0.00%	0.00%	0.00%	0.00%
Rate differential on foreign operations	6.50%	4.10%	3.20%	0.20%	0.00%	0.10%
Excess tax benefits from stock-based awards	-4.80%	-3.30%	-5.20%	-24.10%	-17.20%	0.20%
State taxes, net	4.30%	3.20%	3.10%	0.10%	2.00%	3.80%
Non-deductible officers’ compensation	2.00%	1.40%	1.20%	0.00%	0.00%	0.00%
Permanent differences	0.90%	1.00%	3.80%	1.80%	2.40%	3.30%
Change in valuation allowance	0.30%	0.30%	5.30%	-0.40%	0.50%	0.20%
Foreign taxes	0.00%	0.00%	0.00%	4.10%	2.20%	2.00%
Other	-1.00%	0.10%	-0.60%	0.40%	0.60%	1.70%
Effective income tax rate, before effect of the Tax Reform Act on net deferred tax assets	28.40%	21.80%	21.00%	1.60%	17.10%	43.00%
Effect of the Tax Reform Act on net deferred tax assets	0.00%	0.00%	0.00%	0.00%	13.00%	0.00%
Effective income tax rate	28.40%	21.80%	21.00%	1.60%	30.10%	43.00%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

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Item	Description	The company
Effective income tax rate, before effect of the Tax Reform Act on net deferred tax assets	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Abiomed Inc. effective income tax rate, before effect of the Tax Reform Act on net deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.

Abiomed Inc., components of deferred tax assets and liabilities

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Net operating loss and tax credit carryforwards	29,802)	27,893)	50,604)	62,835)	48,724)	8,814)
Stock-based compensation	14,608)	13,790)	13,607)	15,488)	13,271)	16,560)
Nondeductible reserves and accruals	15,441)	12,097)	9,570)	9,739)	8,290)	10,303)
Foreign net operating loss carryforwards	9,107)	6,856)	6,778)	7,360)	9,598)	13,634)
Deferred revenue	5,830)	5,522)	4,404)	3,677)	3,770)	4,308)
Other, net	312)	363)	1,063)	613)	1,648)	3,443)
Deferred tax assets, before valuation allowance	75,100)	66,521)	86,026)	99,712)	85,301)	57,062)
Valuation allowance	(19,405)	(15,667)	(15,170)	(1,302)	(1,652)	(2,468)
Deferred tax assets	55,695)	50,854)	70,856)	98,410)	83,649)	54,594)
Goodwill	(7,829)	(7,897)	(7,843)	(7,136)	(6,787)	(9,444)
In-process research and development	(12,063)	(12,496)	(4,564)	(4,593)	(5,045)	(4,374)
Depreciation	(14,197)	(11,747)	(9,211)	(2,175)	(1,011)	—)
Basis differences on other investments	(11,442)	(7,766)	(6,124)	(7,146)	—)	—)
Domestic deferred tax liability on foreign net operating loss carryforwards	(393)	(415)	(584)	(680)	(963)	(6,836)
Deferred tax liabilities	(45,924)	(40,321)	(28,326)	(21,730)	(13,806)	(20,654)
Net deferred tax assets (liabilities)	9,771)	10,533)	42,530)	76,680)	69,843)	33,940)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

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Item	Description	The company
Deferred tax assets, before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Abiomed Inc. deferred tax assets, before valuation allowance decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Abiomed Inc. deferred tax assets decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Abiomed Inc. net deferred tax assets (liabilities) decreased from 2020 to 2021 and from 2021 to 2022.

Abiomed Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Deferred tax assets	10,552)	11,380)	43,336)	77,502)	70,746)	34,723)
	Deferred tax liabilities	781)	847)	806)	822)	903)	783)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Abiomed Inc. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Abiomed Inc. deferred tax liabilities increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Abiomed Inc., adjustments to financial statements

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Adjustment to Total Assets
Total assets (as reported)	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Less: Noncurrent deferred tax assets, net	10,552)	11,380)	43,336)	77,502)	70,746)	34,723)
Total assets (adjusted)	1,662,841)	1,482,979)	1,173,126)	976,844)	715,629)	515,691)
Adjustment to Total Liabilities
Total liabilities (as reported)	170,067)	164,684)	150,996)	117,456)	96,851)	98,343)
Less: Noncurrent deferred tax liabilities, net	781)	847)	806)	822)	903)	783)
Total liabilities (adjusted)	169,286)	163,837)	150,190)	116,634)	95,948)	97,560)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	1,503,326)	1,329,675)	1,065,466)	936,890)	689,524)	452,071)
Less: Net deferred tax assets (liabilities)	9,771)	10,533)	42,530)	76,680)	69,843)	33,940)
Stockholders’ equity (adjusted)	1,493,555)	1,319,142)	1,022,936)	860,210)	619,681)	418,131)
Adjustment to Net Income
Net income (as reported)	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Add: Deferred income tax expense (benefit)	2,413)	29,380)	32,953)	(7,745)	42,624)	25,803)
Net income (adjusted)	138,918)	254,905)	235,962)	251,271)	154,794)	77,919)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Abiomed Inc., Financial Data: Reported vs. Adjusted

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Abiomed Inc., adjusted financial ratios

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Net Profit Margin
Reported net profit margin	13.23%	26.61%	24.14%	33.66%	18.89%	11.70%
Adjusted net profit margin	13.46%	30.08%	28.06%	32.66%	26.07%	17.50%
Total Asset Turnover
Reported total asset turnover	0.62	0.57	0.69	0.73	0.76	0.81
Adjusted total asset turnover	0.62	0.57	0.72	0.79	0.83	0.86
Financial Leverage
Reported financial leverage	1.11	1.12	1.14	1.13	1.14	1.22
Adjusted financial leverage	1.11	1.12	1.15	1.14	1.15	1.23
Return on Equity (ROE)
Reported ROE	9.08%	16.96%	19.05%	27.65%	16.27%	11.53%
Adjusted ROE	9.30%	19.32%	23.07%	29.21%	24.98%	18.64%
Return on Assets (ROA)
Reported ROA	8.16%	15.09%	16.69%	24.57%	14.26%	9.47%
Adjusted ROA	8.35%	17.19%	20.11%	25.72%	21.63%	15.11%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Abiomed Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Abiomed Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Abiomed Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Abiomed Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Abiomed Inc. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Abiomed Inc., Financial Ratios: Reported vs. Adjusted

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	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Revenue	1,031,753)	847,522)	840,883)	769,432)	593,749)	445,304)
Profitability Ratio
Net profit margin¹	13.23%	26.61%	24.14%	33.66%	18.89%	11.70%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	138,918)	254,905)	235,962)	251,271)	154,794)	77,919)
Revenue	1,031,753)	847,522)	840,883)	769,432)	593,749)	445,304)
Profitability Ratio
Adjusted net profit margin²	13.46%	30.08%	28.06%	32.66%	26.07%	17.50%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 136,505 ÷ 1,031,753 = 13.23%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 138,918 ÷ 1,031,753 = 13.46%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Abiomed Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Revenue	1,031,753)	847,522)	840,883)	769,432)	593,749)	445,304)
Total assets	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Activity Ratio
Total asset turnover¹	0.62	0.57	0.69	0.73	0.76	0.81
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	1,031,753)	847,522)	840,883)	769,432)	593,749)	445,304)
Adjusted total assets	1,662,841)	1,482,979)	1,173,126)	976,844)	715,629)	515,691)
Activity Ratio
Adjusted total asset turnover²	0.62	0.57	0.72	0.79	0.83	0.86

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 1,031,753 ÷ 1,673,393 = 0.62

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 1,031,753 ÷ 1,662,841 = 0.62

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Abiomed Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Stockholders’ equity	1,503,326)	1,329,675)	1,065,466)	936,890)	689,524)	452,071)
Solvency Ratio
Financial leverage¹	1.11	1.12	1.14	1.13	1.14	1.22
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	1,662,841)	1,482,979)	1,173,126)	976,844)	715,629)	515,691)
Adjusted stockholders’ equity	1,493,555)	1,319,142)	1,022,936)	860,210)	619,681)	418,131)
Solvency Ratio
Adjusted financial leverage²	1.11	1.12	1.15	1.14	1.15	1.23

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 1,673,393 ÷ 1,503,326 = 1.11

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 1,662,841 ÷ 1,493,555 = 1.11

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Abiomed Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Stockholders’ equity	1,503,326)	1,329,675)	1,065,466)	936,890)	689,524)	452,071)
Profitability Ratio
ROE¹	9.08%	16.96%	19.05%	27.65%	16.27%	11.53%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	138,918)	254,905)	235,962)	251,271)	154,794)	77,919)
Adjusted stockholders’ equity	1,493,555)	1,319,142)	1,022,936)	860,210)	619,681)	418,131)
Profitability Ratio
Adjusted ROE²	9.30%	19.32%	23.07%	29.21%	24.98%	18.64%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 136,505 ÷ 1,503,326 = 9.08%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 138,918 ÷ 1,493,555 = 9.30%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Abiomed Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Total assets	1,673,393)	1,494,359)	1,216,462)	1,054,346)	786,375)	550,414)
Profitability Ratio
ROA¹	8.16%	15.09%	16.69%	24.57%	14.26%	9.47%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	138,918)	254,905)	235,962)	251,271)	154,794)	77,919)
Adjusted total assets	1,662,841)	1,482,979)	1,173,126)	976,844)	715,629)	515,691)
Profitability Ratio
Adjusted ROA²	8.35%	17.19%	20.11%	25.72%	21.63%	15.11%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 136,505 ÷ 1,673,393 = 8.16%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 138,918 ÷ 1,662,841 = 8.35%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Abiomed Inc. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Abiomed Inc. (NASDAQ:ABMD)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Abiomed Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Abiomed Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)