Income Taxes |
9 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 9. INCOME TAXES: We account for income taxes in accordance with FASB ASC 740, “Income Taxes” (“ASC 740”). Under ASC 740, we recognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect those temporary differences to be recovered or settled. We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized by considering all available positive and negative evidence. During the three months ended June 30, 2025, we recognized an income tax benefit of $6.5 million. During the three months ended June 30, 2024, we recognized an income tax provision of $11.1 million. During the nine months ended June 30, 2025, we recognized an income tax benefit of $3.0 million. During the nine months ended June 30, 2024, we recognized an income tax expense of $11.5 million. The effective income tax rate for the three months ended June 30, 2025 and 2024 was 11.1% and 25.9%, respectively. The effective income tax rate for the nine months ended June 30, 2025 and 2024 was 8.9% and 25.2%, respectively. The changes in the effective income tax rates are primarily the result of recording the goodwill impairment. The tax effect of the goodwill impairment during the three months ended June 30, 2025 results in a negative effective tax rate for the fiscal year. A negative tax rate makes using an estimate of the annual effective tax rate an unreliable method in determining interim period tax expense. Therefore, we have used the nine months ended June 30, 2025 effective tax rate in determining the three and nine months ended June 30, 2025 income tax benefit. |