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Income and other Taxes
6 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income and other Taxes
Income and Other Taxes

For the three months ended March 31, 2018 and 2017, the Company recorded income tax benefit from continuing operations of approximately $0.2 million and $8,000, respectively. For the three months ended March 31, 2018 and 2017, the Company recorded no income tax benefit from discontinued operations. For the six months ended March 31, 2018 and 2017, the Company recorded income tax benefit (expense) from continuing operations of approximately $0.5 million and $(0.1) million, respectively. For the six months ended March 31, 2018 and 2017, the Company recorded no income tax benefit from discontinued operations. Income tax benefit for the three months ended March 31, 2018 is primarily due to the current period operating loss. Income tax benefit for the six months ended March 31, 2018 is primarily comprised of the effect of the Tax Act which eliminates AMT and will result in a refund to the Company of amounts paid in prior fiscal years. Income tax expense is comprised of estimated alternative minimum tax allocated between continuing operations and discontinued operations as prescribed by ASC 740 and foreign tax expense included within continuing operations.

For the three months ended March 31, 2018 and 2017, the effective tax rate on continuing operations was (5.2)% and 0.4%, respectively. The higher beneficial tax rate for the three months ended March 31, 2018 was primarily due to the current period benefit. The lower tax rate for the three months ended March 31, 2017 compared to the current period was primarily due to permanent differences, state tax benefits and foreign tax rate differentials.

For the six months ended March 31, 2018 and 2017, the effective tax rate on continuing operations was (13.7)% and 3.0%, respectively. The higher beneficial tax rate for the six months ended March 31, 2018 was primarily due to the effect of the Tax Act, which resulted in a credit to the Company on future tax payments for past AMT amounts paid and the current period operating loss. The lower tax rate for the six months ended March 31, 2017 compared to the current period was primarily due to permanent differences, state tax benefits and foreign tax rate differentials. The Company uses estimates to forecast the results from continuing operations for the current fiscal year as well as permanent differences between book and tax accounting.
We have not provided for income taxes on non-U.S. subsidiaries' undistributed earnings as of March 31, 2018 because we plan to indefinitely reinvest the unremitted earnings of our non-U.S. subsidiaries and all of our non-U.S. subsidiaries historically have negative earnings and profits.
All deferred tax assets have a full valuation allowance at March 31, 2018. However, on a quarterly basis, the Company will evaluate the positive and negative evidence to assess whether the more likely than not criteria, mandated by ASC 740, has been satisfied in determining whether there will be further adjustments to the valuation allowance.

During the three and six months ended March 31, 2018 and 2017, there were no material increases or decreases in unrecognized tax benefits. As of March 31, 2018 and September 30, 2017, we had approximately $0.4 million and $0.3 million, respectively, of interest and penalties accrued as tax liabilities on our balance sheet. Interest that is accrued on tax liabilities is recorded within interest expense on the statement of condensed consolidated statements of operations.

The Company’s Board of Directors has adopted a Tax Benefits Preservation Plan (the “Rights Plan”) to help preserve the value of our net operating losses and tax credit carryforwards by reducing the risk of limitation of these deferred tax assets. The Rights Plan was approved by the Company’s shareholders on March 10, 2015. On September 26, 2017, the Company extended the final expiration date of the rights contained therein from October 3, 2017 to October 3, 2018 (subject to earlier expiration as described in the Rights Plan), which extension was approved by the Company's shareholders at the Company's 2018 annual meeting of shareholders on March 16, 2018. The Rights Plan is intended to reduce the likelihood that the Company will experience an ownership change for purposes of Internal Revenue Code Section 382 by discouraging any person or group from becoming a “5% shareholder” or increasing their ownership of the Company’s common stock if they are already a “5% shareholder.”