Income Taxes

6 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

16. INCOME TAXES

The Company calculates the interim tax provision in accordance with the provisions of ASC 740-270, Income Taxes; Interim Reporting, specifically ASC-740-270-25-2. For interim periods, the Company estimates the annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The effective income tax rates for the three months ended March 31, 2023 and 2022 were 29.1% and 24.8%, respectively, and for the six months ended March 31, 2023 and 2022 were 21.8% and 23.8%. The increase in the effective income tax rate for the three months ended March 31, 2023, as compared to the three months ended March 31, 2022, was primarily driven by the impact of updated forecast state tax assumptions in the current year. The decrease in the effective income tax rate for the six months ended March 31, 2023, as compared to the six months ended March 31, 2022, was primarily driven by the impact of year-to-date disallowed stock-based compensation expense on the Company’s current earnings.