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Income Taxes
 6 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

6.

Income Taxes

The Company recorded income tax expense of $33.2 million for the three months ended March 31, 2021, or 25.0% of pre-tax income, compared to $38.3 million, or 35.8% of pre-tax income, for the three months ended March 31, 2020. Results for the three months ended March 31, 2021 were unfavorably impacted by $1.4 million of net discrete charges, including a $0.8 million charge related to state audit settlements. Results for the three months ended March 31, 2020 were unfavorably impacted by $11.1 million of net discrete tax charges, including an $11.4 million charge related to a valuation allowance recorded against certain foreign net deferred tax assets in Europe and a $1.2 million benefit related to employee stock-based compensation payments.

The Company recorded income tax expense of $46.4 million for the six months ended March 31, 2021, or 21.5% of pre-tax income, compared to $59.0 million, or 28.9% of pre-tax income, for the six months ended March 31, 2020. Results for the six months ended March 31, 2021 were favorably impacted by $5.3 million of net discrete tax benefits, including $4.4 million of uncertain tax benefit reserve releases and $2.1 million of interest income related to amended returns and a $0.8 million charge related to state audit settlements. Results for the six months ended March 31, 2020 were unfavorably impacted by $10.0 million of net discrete tax charges, including an $11.4 million charge related to a valuation allowance recorded against certain foreign net deferred tax assets in Europe and a $2.7 million benefit related to employee stock-based compensation payments.

The Company’s liability for gross unrecognized tax benefits, excluding related interest and penalties, was $62.9 million and $79.8 million as of March 31, 2021 and September 30, 2020, respectively. As of March 31, 2021, net unrecognized tax benefits, excluding interest and penalties, of $17.6 million would affect the Company’s net income if recognized.

The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in the “Provision for income taxes” in the Condensed Consolidated Statements of Income. During the six months ended March 31, 2021 and 2020, the Company recognized expense of $1.0 million and $0.7 million, respectively, related to interest and penalties. At March 31, 2021, the Company had accruals for the payment of interest and penalties of $6.7 million. During the next twelve months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce net unrecognized tax benefits by approximately $3.9 million because the Company’s tax positions are sustained on audit, the Company agrees to their disallowance or the statutes of limitations close.