Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income tax expense (benefit) for the years ended September 30, 2018, 2017, and 2016 was allocated as follows:



	Year Ended September 30,
(in millions)	2018		2017		2016
Income tax expense attributable to income from operations	$	46.0	$	8.8	$	18.0
Taxes allocated to stockholders’ equity, related to pension liabilities	0.1		1.0		0.2
Taxes allocated to additional paid-in capital, related to share-based compensation	—		0.1		(0.8		)
Total income tax expense	$	46.1	$	9.9	$	17.4

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



	Year Ended September 30,
(in millions)	2018		2017			2016
Current taxes:
U.S. federal	$	0.8	$	0.7		$	1.3
U.S. State and local	0.5		1.2			0.8
International	22.4		16.7			16.8
Total current taxes	23.7		18.6			18.9
Deferred taxes	22.3		(9.8		)	(0.8		)
Income tax benefit attributable to interest income	—		—			(0.1		)
Income tax expense	$	46.0	$	8.8		$	18.0

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



	Year Ended September 30,
(in millions)	2018		2017			2016
U.S.	$	9.9	$	(13.9	)	$	4.8
International	91.6		29.1			67.9
Income from operations, before tax	$	101.5	$	15.2		$	72.7

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,
	2018		2017		2016
Federal statutory rate effect of:	24.5	%	35.0	%	35.0	%
U.S. State and local income taxes	0.8	%	(2.6	)%	1.3	%
Foreign earnings and losses taxed at lower rates	(0.8	)%	11.5	%	(11.0	)%
Change in foreign valuation allowance	(0.8	)%	(1.4	)%	(0.3	)%
Change in state valuation allowance	—	%	4.1	%	—	%
U.S. permanent items	(0.2	)%	3.6	%	0.8	%
Foreign permanent items	2.1	%	8.1	%	1.9	%
U.S. bargain purchase gain	—	%	—	%	(3.0	)%
Remeasurement of deferred tax	8.5	%	—	%	—	%
Repatriation Transition tax	11.0	%	—	%	—	%
Other reconciling items	0.2	%	(0.6	)%	0.3	%
Effective rate	45.3	%	57.7	%	25.0	%

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



(in millions)	September 30, 2018			September 30, 2017
Deferred tax assets:
Share-based compensation	$	2.8		$	3.7
Pension liability	—			0.1
Deferred compensation	1.4			2.0
Foreign net operating loss carryforwards	4.2			5.6
U.S. State and local net operating loss carryforwards	8.7			6.6
U.S. federal net operating loss carryforwards	—			21.9
Intangible assets	1.8			6.1
Bad debt reserve	1.5			1.4
Tax credit carryforwards	—			1.6
Foreign tax credit carryforwards	6.5			—
Other compensation	3.4			3.6
Other	0.9			1.9
Total gross deferred tax assets	31.2			54.5
Less valuation allowance	(3.5		)	(4.0		)
Deferred tax assets	27.7			50.5
Deferred income tax liabilities:
Unrealized gain on securities	2.6			3.2
Prepaid expenses	1.8			2.5
Property and equipment	3.1			2.2
Pension liability	0.4			—
Deferred income tax liabilities	7.9			7.9
Deferred income taxes, net	$	19.8		$	42.6

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



	Year Ended September 30,
(in millions)	2018		2017		2016
Balance, beginning of year	$	0.1	$	0.1	$	—
Gross increases for tax positions related to prior years	—		—		0.1
Balance, end of year	$	0.1	$	0.1	$	0.1