INCOME TAX EXPENSE

6 Months Ended

Mar. 31, 2017

Income Tax Expense [Abstract]

INCOME TAX EXPENSE

9. INCOME TAX EXPENSE

The second quarter 2017 effective income tax rate was 33.7% compared to 36.8% in the second quarter of 2016. The effective income tax rate for the first six months of 2017 was 33.6% compared to 34.4% for the first six months of 2016. The income tax expense in the second quarter and first six months of 2017 was unfavorably impacted by a decrease in the foreign tax rate benefit of 0.8% and 1.4%, respectively.

The income tax expense in the second quarter and first six months of 2016 was unfavorably impacted by a U.K. foreign valuation allowance that increased the second quarter and year-to-date effective tax rate by 4.8% and 2.5%, respectively. The income tax expense in the first six months of 2016 was favorably impacted by the extension of the research credit as a result of The Protecting Americans from Tax Hikes Act reducing the year-to-date effective tax rate by 3.0%. The income tax expense in the first six months of 2016 was unfavorably impacted by losses in foreign jurisdictions for which no tax benefit was recorded, increasing the year-to-date effective tax rate by 2.8%.

The Company estimates the fiscal 2017 effective tax rate will be approximately 34%. During the three-month period ended March 31, 2017, there were no material changes in the unrecognized tax benefits. The Company does not anticipate a material change in the amount of unrecognized tax benefits in the next twelve months.