Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Income tax expense (benefit) for the years ended September 30, 2016, 2015, and 2014 was allocated as follows:



	Year Ended September 30,
(in millions)	2016			2015			2014
Income tax expense attributable to income from continuing operations	$	18.0		$	22.4		$	6.4
Income tax (benefit) expense attributable to loss from discontinued operations	—			—			(0.2		)
Taxes allocated to stockholders’ equity, related to unrealized gains (losses) on available-for-sale securities	—			(0.4		)	0.1
Taxes allocated to stockholders’ equity, related to pension liabilities	0.2			(0.8		)	(0.5		)
Taxes allocated to additional paid-in capital, related to share-based compensation	(0.8		)	(0.5		)	0.1
Total income tax expense	$	17.4		$	20.7		$	5.9

The components of the provision for income taxes attributable to income from continuing operations were as follows:



	Year Ended September 30,
(in millions)	2016			2015		2014
Current taxes:
U.S. federal	$	1.3		$	0.8	$	0.5
U.S. State and local	0.8			1.2		—
International	16.8			15.4		11.6
Total current taxes	18.9			17.4		12.1
Deferred taxes	(0.8		)	5.0		(5.7		)
Income tax benefit attributable to interest income	$	(0.1	)	$	—	$	—
Income tax expense	$	18.0		$	22.4	$	6.4

U.S. and international components of (loss) income from continuing operations, before income taxes, was as follows:



	Year Ended September 30,
(in millions)	2016		2015		2014
U.S.	$	4.9	$	14.5	$	(13.0	)
International	67.9		63.7		39.0
Income from continuing operations, before tax	$	72.8	$	78.2	$	26.0

Items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes were as follows:



	Year Ended September 30,
	2016		2015		2014
Federal statutory rate effect of:	35.0	%	35.0	%	35.0	%
U.S. State and local income taxes	1.3	%	1.8	%	—	%
Foreign earnings taxed at lower rates	(9.3	)%	(10.1	)%	(14.7	)%
Change in foreign valuation allowance	(0.3	)%	(0.1	)%	1.9	%
Change in state valuation allowance	—	%	0.6	%	(0.2	)%
Uncertain tax positions	—	%	—	%	(0.5	)%
U.S. permanent items	0.8	%	0.5	%	1.9	%
Foreign permanent items	0.2	%	1.1	%	7.0	%
U.S. bargain purchase gain	(3.0	)%	—	%	—	%
Other reconciling items	0.3	%	(0.1	)%	(5.7	)%
Effective rate	25.0	%	28.7	%	24.7	%

The components of deferred income tax assets and liabilities were as follows:



(in millions)	September 30, 2016			September 30, 2015
Deferred tax assets:
Share-based compensation	$	4.3		$	3.2
Pension liability	1.9			2.7
Deferred compensation	2.0			2.3
Foreign net operating loss carryforwards	2.0			2.3
U.S. State and local net operating loss carryforwards	4.9			4.3
U.S. federal net operating loss carryforwards	12.4			8.6
Intangible assets	8.3			4.6
Capital loss carryforwards	—			0.2
Bad debt reserve	1.6			2.4
Tax Credit Carryforwards	1.4			1.0
Other compensation	3.3			1.9
Other	1.8			1.3
Total gross deferred tax assets	43.9			34.8
Less valuation allowance	(3.6		)	(3.2		)
Deferred tax assets	40.3			31.6
Deferred income tax liabilities:
Unrealized gain on securities	1.3			1.0
Prepaid expenses	1.9			1.1
Fixed assets	2.6			1.3
Deferred income tax liabilities	5.8			3.4
Deferred income taxes, net	$	34.5		$	28.2

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	Year Ended September 30,
(in millions)	2016		2015		2014
Balance, beginning of year	$	—	$	—	$	0.1
Gross increases for tax positions related to current year	—		—		—
Gross increases for tax positions related to prior years	0.1		—		—
Gross decreases for tax positions of prior years	—		—		(0.1		)
Settlements	—		—		—
Lapse of statute of limitations	—		—		—
Balance, end of year	$	0.1	$	—	$	—