Income Taxes

6 Months Ended

Mar. 31, 2022

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, 2022 and 2021 were 24.8% and 25.0%, respectively, and for the six months ended March 31, 2022 and 2021 were 23.8% and 25.0%. The decrease in the effective income tax rate for the three and six months ended March 31, 2022, as compared to the three and six months ended March 31, 2021, is primarily driven by the impact of discrete tax benefits on the Company’s year to date earnings.