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Income and Other Taxes
3 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income and Other Taxes
Income and Other Taxes

For the three months ended December 31, 2018 and 2017, the Company recorded income tax (expense) benefit of approximately $(15,000) and $0.3 million, respectively. Income tax expense for the three months ended December 31, 2018 is primarily comprised of state minimum tax expense. Income tax benefit for three months ended December 31, 2017 is primarily comprised of the effect of the December 22, 2017 Tax Cuts and Jobs Act (the “Tax Act”) which eliminated Alternative Minimum Taxes and resulted in a refund to the Company of amounts paid in prior fiscal years, state minimum tax expense, and foreign tax expense included within continuing operations.

For the three months ended December 31, 2018 and 2017, the effective tax rate on continuing operations was 0% and (80.2)%, respectively. The lower tax rate for the three months ended December 31, 2018 is primarily due to the operating loss and state minimum tax expense. The higher beneficial tax rate for three months ended December 31, 2017 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 fiscal year 2018 operating loss. Income tax expense is comprised of estimated alternative minimum tax as prescribed by ASC 740 and foreign tax expense. The Company uses some estimates to forecast permanent differences between book and tax accounting.
We have not provided for income taxes on non-U.S. subsidiaries' undistributed earnings as of December 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 December 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 months ended December 31, 2018 and 2017, there were no material increases or decreases in unrecognized tax benefits. As of December 31, 2018 and September 30, 2018, we had approximately $0.4 million of interest and penalties accrued as tax liabilities on our balance sheet. We believe that it is reasonably possible that none of the uncertain tax position will be paid or settled within the next 12 months. Interest that is accrued on tax liabilities is recorded within interest expense on the statement of condensed consolidated statements of operations.