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INCOME TAXES
6 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 7 INCOME TAXES
We use an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating our estimated annual effective tax rate, we consider forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and estimates will occur as information and assumptions change.
Our income tax benefit from continuing operations for the three months ended March 31, 2021 and 2020 was $36.6 million and $113.4 million, respectively, resulting in effective tax rates of 22.9 percent and 21.2 percent, respectively. Our income tax benefit from continuing operations for the six months ended March 31, 2021 and 2020 was $54.7 million and $99.3 million, respectively, resulting in effective tax rates of 21.4 percent and 20.3 percent, respectively. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three and six months ended March 31, 2021 and 2020 primarily due to state and foreign income taxes, permanent non-deductible items and discrete adjustments. Additionally, the effective tax rate for the three and six months ended March 31, 2021 includes a federal tax benefit arising from the ability to carryback the projected fiscal year 2021 federal net operating loss to a year when the statutory rate was 35.0 percent. The discrete adjustments for the six months ended March 31, 2021 and 2020 are primarily due to tax expense related to equity compensation of $4.1 million and $2.4 million, respectively.
For the next 12 months, we cannot predict with certainty whether we will achieve ultimate resolution of any uncertain tax positions associated with our U.S. and international operations that could result in increases or decreases of our unrecognized tax benefits. However, we do not expect the increases or decreases to have a material effect on our results of continuing operations or financial position.