INCOME TAXES

9 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

(12) INCOME TAXES

Income tax expense for the three months ended March 31, 2023 and 2022 was $17.2 million and $14.7 million, respectively, which reflects effective tax rates of 26% and 27%, respectively. The change in the effective tax rate for the three months ended March 31, 2023 is primarily related to changes in stock-based compensation expense.

Income tax expense for the nine months ended March 31, 2023 and 2022 was $59.8 million and $40.1 million, respectively, which reflects effective tax rates of 28% and 14%, respectively. The change in the effective tax rate for the nine months ended March 31, 2023, is primarily driven by the prior year valuation allowance release resulting from the Subsidiary Reorganization. Excluding the valuation allowance release, the effective tax rate would have been 25% for the nine months ended March 31, 2022 with the remaining difference primarily related to repricing due to the Subsidiary Reorganization and state legislative changes.

As of March 31, 2023, total tax liabilities included $52.3 million within other current liabilities in the accompanying Condensed Consolidated Balance Sheets.