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Income and Other Taxes
6 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income and Other Taxes
Income and Other Taxes

For the three months ended March 31, 2019 and 2018, the Company recorded income tax (expense) benefit of approximately $(15,000) and $0.2 million, respectively. Income tax expense for the three months ended March 31, 2019 is primarily comprised of state minimum tax expense. Income tax benefit for the three months ended March 31, 2018 is primarily comprised of the effect of the December 22, 2017 Tax Cuts and Jobs Act (the “Tax Act”) which eliminated Alternative Minimum Taxes (“AMT”) 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 six months ended March 31, 2019 and 2018, the Company recorded income tax (expense) benefit of approximately $(30,000) and $0.5 million, respectively. Income tax expense for the six months ended March 31, 2019 is primarily comprised of state minimum tax expense. Income tax benefit for the six months ended March 31, 2018 is primarily comprised of the effect of the December 22, 2017 “Tax Act” which eliminated AMT and resulted in a refund to the Company of amounts paid in prior fiscal years.

For the three months ended March 31, 2019 and 2018, the effective tax rate on continuing operations was 0% and (5.2)%, respectively. The lower tax rate for the three months ended March 31, 2019 is primarily due to the operating loss and state minimum tax expense. The higher beneficial tax rate for the three 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 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.

For the six months ended March 31, 2019 and 2018, the effective tax rate on continuing operations was 0% and (13.7)%, respectively. The lower tax rate for the six months ended March 31, 2019 is primarily due to the operating loss and state minimum tax expense. 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. 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 March 31, 2019 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, 2019. 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, 2019 and 2018, there were no material increases or decreases in unrecognized tax benefits. As of March 31, 2019 and September 30, 2018, we had approximately $0.5 million and $0.4 million, respectively, 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 positions will be paid or settled within the next 12 months. Interest that is accrued on tax liabilities is recorded within interest expense on the condensed consolidated statements of operations.