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,
	2017			2016			2017			2016
Domestic	$	(41,803	)	$	(33,691	)	$	(89,386	)	$	(62,693	)
Foreign	17,136			35,890			51,144			60,594
(Loss) income before income taxes	$	(24,667	)	$	2,199		$	(38,242	)	$	(2,099	)

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



	Three Months Ended March 31,						Six Months Ended March 31,
	2017			2016			2017			2016
Domestic	$	4,822		$	5,021		$	8,981		$	9,559
Foreign	4,319			4,224			10,513			7,453
Provision for income taxes	$	9,141		$	9,245		$	19,494		$	17,012
Effective tax rate	(37.1		)%	420.4		%	(51.0		)%	(810.5		)%

The effective income tax rate was (37.1)% and 420.4% for the three months ended March 31, 2017 and 2016, respectively. The effective income tax rate was (51.0)% and (810.5)% for the six months ended March 31, 2017 and 2016, respectively. Our current effective income tax rate differs from the U.S. federal statutory rate of 35% primarily due to current period losses in the United States that require an additional valuation allowance and accordingly provide no benefit to the provision as well as an increase to indefinite lived deferred tax liabilities. This is partially offset by our earnings in foreign operations that are subject to a significantly lower tax rate than the U.S. statutory tax rate, driven primarily by our subsidiaries in Ireland.

The effective income tax rate is based upon the income for the year, the composition of the 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. The majority of our income before provision for income taxes from foreign operations has been earned by subsidiaries in Ireland. 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, 2017 and September 30, 2016, we had gross tax effected unrecognized tax benefits of $28.3 million and $27.3 million, respectively, which are included in other long-term liabilities. If these benefits were recognized, they would impact our effective tax rate. We do not expect a significant change in the amount of unrecognized tax benefits within the next 12 months.