Income Taxes |
6 Months Ended |
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Mar. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The income tax provision for interim periods comprises income tax on ordinary income (loss) at the most recent estimated annual effective income tax rate, adjusted for the income tax effect of discrete items. Management uses an estimated annual effective income tax rate based on the forecasted pretax income/(loss) and statutory tax rates in the various jurisdictions in which the Company operates. The Organization for Economic Co-operation and Development (“OECD”) and the G20 Inclusive Framework on Base Erosion and Profit Shifting (the "Inclusive Framework") have put forth Pillar Two proposals that ensure a minimal level of taxation. Several countries in which the Company operates, including several European Union member states, have adopted domestic legislation to implement the Inclusive Framework's global corporate minimum tax rate of fifteen percent. This legislation became effective for the Company beginning October 1, 2024. Based on the Company's current analysis of Pillar Two provisions, these tax law changes did not have a material impact on the Company's financial statements for the six months ended March 31, 2025, and are not expected to have a material impact for fiscal 2025. Current and Prior Period Tax Expense Income tax expense of $25.4 million and $19.2 million for the three months ended March 31, 2025 and 2024, respectively, reflects estimated federal, foreign, state and local income taxes. The Company’s effective tax rate was 26% and 26% for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate was higher than the U.S. federal statutory rate of 21% for the three months ended March 31, 2025 due to U.S. state and local taxes, Global Intangible Low-Taxed Income (“GILTI”), U.S. and foreign permanent differences, and the amount of foreign earnings taxed at higher rates.
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