Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Income tax expense (benefit) for the years ended September 30, 2017, 2016, and 2015 was allocated as follows:



	Year Ended September 30,
(in millions)	2017		2016			2015
Income tax expense attributable to income from operations	$	8.8	$	18.0		$	22.4
Taxes allocated to stockholders’ equity, related to unrealized losses on available-for-sale securities	—		—			(0.4		)
Taxes allocated to stockholders’ equity, related to pension liabilities	1.0		0.2			(0.8		)
Taxes allocated to additional paid-in capital, related to share-based compensation	0.1		(0.8		)	(0.5		)
Total income tax expense	$	9.9	$	17.4		$	20.7

The components of income tax expense (benefit) attributable to income from operations were as follows:



	Year Ended September 30,
(in millions)	2017			2016			2015
Current taxes:
U.S. federal	$	0.7		$	1.3		$	0.8
U.S. State and local	1.2			0.8			1.2
International	16.7			16.8			15.4
Total current taxes	18.6			18.9			17.4
Deferred taxes	(9.8		)	(0.8		)	5.0
Income tax benefit attributable to interest income	$	—		$	(0.1	)	$	—
Income tax expense	$	8.8		$	18.0		$	22.4

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



	Year Ended September 30,
(in millions)	2017			2016		2015
U.S.	$	(13.9	)	$	4.9	$	14.5
International	29.1			67.9		63.7
Income from operations, before tax	$	15.2		$	72.8	$	78.2

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



	Year Ended September 30,
	2017		2016		2015
Federal statutory rate effect of:	35.0	%	35.0	%	35.0	%
U.S. State and local income taxes	(2.6	)%	1.3	%	1.8	%
Foreign earnings and losses taxed at lower rates	11.5	%	(11.0	)%	(11.1	)%
Change in foreign valuation allowance	(1.4	)%	(0.3	)%	(0.1	)%
Change in state valuation allowance	4.1	%	—	%	0.6	%
U.S. permanent items	3.6	%	0.8	%	0.5	%
Foreign permanent items	8.1	%	1.9	%	2.1	%
U.S. bargain purchase gain	—	%	(3.0	)%	—	%
Other reconciling items	(0.6	)%	0.3	%	(0.1	)%
Effective rate	57.7	%	25.0	%	28.7	%

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



(in millions)	September 30, 2017			September 30, 2016
Deferred tax assets:
Share-based compensation	$	3.7		$	4.3
Pension liability	0.1			1.9
Deferred compensation	2.0			2.0
Foreign net operating loss carryforwards	5.6			2.0
U.S. State and local net operating loss carryforwards	6.6			4.9
U.S. federal net operating loss carryforwards	21.9			12.4
Intangible assets	6.1			8.3
Bad debt reserve	1.4			1.6
Tax credit carryforwards	1.6			1.4
Other compensation	3.6			3.3
Other	1.9			1.8
Total gross deferred tax assets	54.5			43.9
Less valuation allowance	(4.0		)	(3.6		)
Deferred tax assets	50.5			40.3
Deferred income tax liabilities:
Unrealized gain on securities	3.2			1.3
Prepaid expenses	2.5			1.9
Property and equipment	2.2			2.6
Deferred income tax liabilities	7.9			5.8
Deferred income taxes, net	$	42.6		$	34.5

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



	Year Ended September 30,
(in millions)	2017		2016		2015
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	—		—		—
Settlements	—		—		—
Lapse of statute of limitations	—		—		—
Balance, end of year	$	0.1	$	0.1	$	—