Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income tax expense (benefit) for the years ended September 30, 2019, 2018, and 2017 was allocated as follows:



	Year Ended September 30,
(in millions)	2019			2018		2017
Income tax expense attributable to income from operations	$	25.9		$	46.0	$	8.8
Taxes allocated to stockholders’ equity, related to pension liabilities	(0.2		)	0.1		1.0
Taxes allocated to additional paid-in capital, related to share-based compensation	—			—		0.1
Total income tax expense	$	25.7		$	46.1	$	9.9

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

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



	Year Ended September 30,
(in millions)	2019			2018		2017
U.S.	$	(2.6	)	$	9.9	$	(13.9	)
International	113.6			91.6		29.1
Income from operations, before tax	$	111.0		$	101.5	$	15.2

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,
	2019		2018		2017
Federal statutory rate effect of:	21.0	%	24.5	%	35.0	%
U.S. State and local income taxes	(1.5	)%	0.8	%	(2.6	)%
Foreign earnings and losses taxed at different rates	0.7	%	(0.8	)%	11.5	%
Change in foreign valuation allowance	1.0	%	(0.8	)%	(1.4	)%
Change in state valuation allowance	0.5	%	—	%	4.1	%
U.S. permanent items	0.1	%	(0.2	)%	3.6	%
Foreign permanent items	0.7	%	2.1	%	8.1	%
U.S. bargain purchase gain	(1.0	)%	—	%	—	%
Remeasurement of deferred tax	—	%	8.5	%	—	%
Repatriation Transition tax	—	%	11.0	%	—	%
GILTI	2.2	%	—	%	—	%
Other reconciling items	(0.4	)%	0.2	%	(0.6	)%
Effective rate	23.3	%	45.3	%	57.7	%

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



(in millions)	September 30, 2019			September 30, 2018
Deferred tax assets:
Share-based compensation	$	3.3		$	2.8
Deferred compensation	3.6			1.4
Foreign net operating loss carryforwards	2.6			4.2
U.S. State and local net operating loss carryforwards	9.2			8.7
U.S. federal net operating loss carryforwards	1.1			—
Intangible assets	4.8			1.8
Bad debt reserve	1.3			1.5
Tax credit carryforwards	0.5			—
Foreign tax credit carryforwards	5.0			6.5
Other compensation	2.2			3.4
Other	1.1			0.9
Total gross deferred tax assets	34.7			31.2
Less valuation allowance	(8.5		)	(3.5		)
Deferred tax assets	26.2			27.7
Deferred income tax liabilities:
Unrealized gain on securities	3.2			2.6
Prepaid expenses	2.2			1.8
Property and equipment	2.6			3.1
Pension liability	0.2			0.4
Deferred income tax liabilities	8.2			7.9
Deferred income taxes, net	$	18.0		$	19.8

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



	Year Ended September 30,
(in millions)	2019			2018		2017
Balance, beginning of year	$	0.1		$	0.1	$	0.1
Gross decreases for tax positions of prior years	(0.1		)	—		—
Balance, end of year	$	—		$	0.1	$	0.1