INCOME TAXES

6 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted by the United States in March 2020. The CARES Act includes provisions to support individuals and businesses in the form of loans, grants, and tax changes, among other types of relief. We are currently assessing the impact of this law, however it did not have a material impact on our provision for income taxes for the three months ended March 31, 2020. We did not and do not intend to take any loans or grants pursuant to the CARES Act or other U.S. Pandemic-related legislation.

The Company’s effective income tax rate was 17.8% and 20.1% for the three and six months ended March 31, 2020, respectively, compared to an effective income tax rate of 28.5% and 26.0% for the three and six months ended March 31, 2019, respectively. The decrease in our effective tax rate for the six months ended March 31, 2020 compared to the prior year is primarily attributable to a higher tax benefit related to share based compensation and the favorable impact from the absence of non-deductible KMG acquisition-related costs.