Income Taxes

6 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The calculation of the effective tax rate is as follows (in thousands):

	Three months ended March 31,						Six months ended March 31,
	2024			2023			2024			2023
Income before income taxes	$	43,917		$	10,973		$	73,795		$	12,587
Income tax provision	10,429			2,500			16,222			2,951
Net income	$	33,488		$	8,473		$	57,573		$	9,636
Effective tax rate	24		%	23		%	22		%	23		%

Our income tax provision reflects an effective tax rate on pre-tax income of 24% and 22% for the three and six months ended March 31, 2024, respectively, compared to 23% for both the three and six months ended March 31, 2023. The effective tax rate for the three and six months ended March 31, 2024 was favorably impacted by the estimated Research and Development Tax Credit (R&D Tax Credit) as well as discrete items related to the vesting of RSUs and the release of a reserve for unrecognized tax benefits upon expiration of the statute of limitations. These items were offset by an inclusion related to U.S. global intangible income and the tax expense related to certain nondeductible expenses. The effective tax rate for the three and six months ended March 31, 2023 was favorably impacted by the estimated R&D Tax Credit and the projected utilization of net operating loss carryforwards in the U.K. that had been fully reserved with a valuation allowance. The favorable impacts were offset by state income tax expense, certain nondeductible expenses and an income inclusion related to U.S. global intangible income.