Income Taxes

9 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Our effective tax rate was (10.2%) and 82.8% for the nine months ended June 30, 2024 and 2023, respectively. The effective tax rate for the nine months ended June 30, 2024 differs from the U.S. statutory tax rate of 21% primarily due to goodwill and intangible impairment losses for which no tax benefit can be recognized. The effective tax rate for the nine months ended June 30, 2023 differs from the U.S. statutory tax rate of 21% primarily due to the release of a portion of our valuation allowance in connection with a deferred tax liability related to the Entrepix acquisition resulting in recognition of previously recorded deferred tax assets. For the three months ended June 30, 2024 and 2023, we recorded income tax expense of $0.5 million and an income tax expense of $0.2 million, respectively. For the nine months ended June 30, 2024 and 2023, we recorded an income tax expense of $0.7 million and income tax benefit of $2.7 million, respectively. The quarterly income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which we operate. However, losses in certain jurisdictions and discrete items are excluded from the determination of the estimated annual effective tax rate.