Income Taxes

The components of (loss) income before income taxes are as follows (dollars in thousands):



	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Domestic	$	(37,225	)	$	(55,683	)	$	(100,935	)	$	(121,628	)
Foreign	34,186			22,850			53,215			36,360
(Loss) income before income taxes	$	(3,039	)	$	(32,833	)	$	(47,720	)	$	(85,268	)

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



	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Domestic	$	5,832		$	5,250		$	9,634		$	3,795
Foreign	5,227			1,144			7,239			5,577
Provision for income taxes	$	11,059		$	6,394		$	16,873		$	9,372
Effective tax rate	(363.9		)%	(19.5		)%	(35.4		)%	(11.0		)%

The effective income tax rate was (363.9)% and (35.4)% for the three and six months ended March 31, 2015, respectively. Our current effective tax rate differs from the U.S. federal statutory rate of 35% primarily due to current period losses in the U.S. that require an additional valuation allowance and provide no benefit to the provision. The three and six months ended March 31, 2015 also include$3.5 million and $7.1 million, respectively, of deferred tax expense related to tax deductible goodwill. In addition, included in the three and six months ended March 31, 2015 is a $2.5 million increase to the valuation allowance resulting from an allocation period adjustment related to an acquisition. Earnings in foreign operations are subject to a significantly lower tax rate than the U.S. statutory tax rate, driven primarily by our subsidiaries in Ireland.

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 potential tax consequences resulting from 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 March 31, 2015 and September 30, 2014, the liability for income taxes associated with uncertain tax positions was $22.1 million and $21.2 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 12 months.