Income Taxes

The components of provision from income taxes are as follows (dollars in thousands):



	Three months Ended June 30,						Nine Months Ended June 30,
	2014			2013			2014			2013
Domestic	$	4,710		$	25,712		$	8,505		$	8,136
Foreign	2,249			1,278			7,826			10,967
Provision for income taxes	$	6,959		$	26,990		$	16,331		$	19,103
Effective tax rate	(14.7		)%	(338.1		)%	(12.3		)%	(29.9		)%

The effective income tax rate was (14.7)% and (12.3)% for the three and nine months ended June 30, 2014, respectively. Our current effective tax rate differs from the U.S. federal statutory rate of 35% primarily due to earnings in foreign operations which are subject to a significantly lower tax rate than the U.S. statutory tax rate, driven primarily by our subsidiaries in Ireland. The effective tax rate for the three and nine months ended June 30, 2014 included the impact of $1.0 million and ($2.8) million, respectively, in adjustments to the domestic valuation allowance as a result of acquisitions.

The effective income tax rate was (338.1)% and (29.9)% for the three and nine months ended June 30, 2013, respectively. The difference in the effective tax rate in fiscal 2013 as compared to the U.S. federal statutory rate of 35% was primarily driven by the establishment of a valuation allowance related to our net domestic deferred tax assets for which we concluded that the recoverability of the net assets was not more likely than not during the third quarter of fiscal 2013.

Our effective income tax rate is based upon the income for the year, the composition of income in different countries, changes relating to valuation allowances for certain countries if and as necessary, and adjustments, if any, for the potential tax consequences, benefits or resolutions of audits or other tax contingencies. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in the United States. Our effective tax rate may be adversely affected by earnings being lower than anticipated in countries where we have lower statutory tax rates and higher than anticipated in countries where we have higher statutory tax rates.

At June 30, 2014 and September 30, 2013, the liability for income taxes associated with uncertain tax positions was $21.1 million and $19.6 million, respectively, and is included in other long term liabilities. If these benefits were recognized, they would favorably impact the effective tax rate. We do not expect a significant change in the amount of unrecognized tax benefits within the next twelve months.