Income Taxes

3 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Benefit for Income Taxes

The Company computes its tax provision (benefit) for interim periods by applying the estimated annual effective tax rate (“AETR”) to year-to-date income from operations and adjusting for discrete items arising in that quarter. However, if the Company is unable to make a reliable estimate of its AETR, then the actual effective tax rate for the year-to-date period may be the best estimate. For the three months ended September 30, 2022, the Company computed its tax provision (benefit) using the AETR approach. However, for the three months ended September 30, 2023, the Company recorded the actual effective tax rate as it was determined that the AETR approach was not the most appropriate estimate to be applied to the year-to-date pretax (loss) income given small changes in the forecast of pre-tax (loss) income would result in significant changes in the AETR.

Benefit for income taxes was $17.5 million and $93.5 million for the three months ended September 30, 2023 and 2022, respectively, resulting in effective tax rates of 33.6% and 89.3%, respectively. Income tax benefit decreased due to a change in the Company’s approach to computing its tax provision (benefit) for interim periods to an actual effective tax rate method.