Income Taxes

9 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

12) Income Taxes

On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains several changes to corporate taxation including increased limitations on deductions for interest expense and reinstating 100% bonus depreciation on fixed assets acquired and placed in service after January 19, 2025. We are evaluating the full effects of the legislation on our estimated annual effective tax rate and cash tax position. As the legislation was signed into law after the close of our third quarter, the impacts are not included in our operating results for the nine months ended June 30, 2025.

The accompanying financial statements are reported on a fiscal year, however, the Company and its corporate subsidiaries file Federal and State income tax returns on a calendar year.

The current and deferred income tax expense for the three and nine months ended June 30, 2025 and June 30, 2024 are as follows:

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
(in thousands)	2025			2024			2025		2024
Income (loss) before income taxes	$	(23,090	)	$	(15,201	)	$	143,496	$	99,196
Current income tax expense (benefit)		(5,429	)		(4,418	)		30,958		31,382
Deferred income tax expense (benefit)		(1,032	)		261			10,372		(2,495	)
Total income tax expense (benefit)	$	(6,461	)	$	(4,157	)	$	41,330	$	28,887

At June 30, 2025, we did not have unrecognized income tax benefits.

Our continuing practice is to recognize interest and penalties related to income tax matters as a component of income tax expense. We file U.S. Federal income tax returns and various state and local returns. A number of years may elapse before an uncertain tax position is audited and finally resolved. For our Federal income tax returns we have four tax years subject to examination. In our major state tax jurisdictions of New York, Connecticut and Pennsylvania, we have four years that are subject to examination. In the state tax jurisdiction of New Jersey we have five tax years that are subject to examination. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, based on our assessment of many factors, including past experience and interpretation of tax law, we believe that our provision for income taxes reflect the most probable outcome. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events.