XML 29 R17.htm IDEA: XBRL DOCUMENT v3.25.1
INCOME TAXES
 6 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
11.    INCOME TAXES

The Company uses the asset and liability method of accounting for income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect on deferred tax assets and liabilities of a change in tax rates in income in the period that includes the enactment date. The Company records valuation allowances based on a determination of the expected realization of tax assets.

The Company’s effective tax rates for the three months ended March 31, 2025 and 2024 were 6.9% and 11.7%, respectively. For the three months ended March 31, 2025, the Company’s effective tax rate was primarily driven by nondeductible expenses. For the three months ended March 31, 2024, the Company’s effective tax rate was primarily driven by unfavorable discrete adjustments related to the Agreement in Principle (subsequently replaced by the Resolution Agreement and Plea Agreement) and changes in valuation allowance, partially offset by a change in the Company's forecasted loss before income taxes.

The Company’s effective tax rates for the six months ended March 31, 2025 and 2024 were 7.2% and 13.4%, respectively. For the six months ended March 31, 2025, the Company’s effective tax rate was primarily driven by a change in the valuation allowance. For the six months ended March 31, 2024, the Company’s effective tax rate was primarily driven by unfavorable permanent items related to the Agreement in Principle (subsequently replaced by the Resolution Agreement and Plea Agreement) and valuation allowance adjustments.