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Income Taxes
 6 Months Ended
Dec. 31, 2023
Income Taxes  
Income Taxes

11. Income Taxes

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The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

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The effective tax rates for the three months ended December 31, 2022 and 2023 were 19.5% and 20.2%, respectively. During the three months ended December 31, 2022, we recognized a net discrete tax benefit of $0.4 million related to equity-based compensation under ASU 2016-09 and a benefit of $0.4 million for changes in prior year tax estimates. During the three months ended December 31, 2023, we recognized a net discrete tax benefit of $0.2 million related to equity-based compensation under ASU 2016-09 and a benefit of $2.3 million from changes in prior year tax estimates.

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The effective tax rates for the six months ended December 31, 2022 and 2023 were 21.6% and 21.0%, respectively. During the six months ended December 31, 2022, we recognized net discrete tax benefit of $0.5 million related to equity-based compensation under ASU 2016-09 and a benefit of $0.4 million from changes in prior year tax estimates. During the six months ended December 31, 2023, we recognized a net discrete tax benefit of $0.6 million related to equity-based compensation under ASU 2016-09 and a benefit of $2.3 million from changes in prior year tax estimates.