me Taxes

The components of provision (benefit) from income taxes are as follows (dollars in thousands):



	Three Months Ended December 31,
	2013			2012
Domestic	$	(1,455	)	$	(16,488	)
Foreign	4,433			7,927
Provision (benefit) from income taxes	$	2,978		$	(8,561	)
Effective tax rate	(5.7		)%	27.9		%

The effective income tax rate was (5.7)% and 27.9% for the three months ended December 31, 2013 and 2012, respectively. Our current effective tax rate differs from the U.S. federal statutory rate of 35% primarily due to earnings in foreign operations which are subject to a significantly lower tax rate than the U.S. statutory tax rate driven primarily by our subsidiaries in Ireland. The effective tax rate for the three months ended December 31, 2013 was also impacted by a $5.2 million benefit for income taxes due to the release of a portion of the domestic valuation allowance resulting from a one-time tax benefit recorded in connection with an immaterial acquisition for which a net deferred tax liability was established related to acquired intangible assets.

Our effective income tax rate is based upon the income for the year, the composition of income in different countries, changes relating to valuation allowances for certain countries if and as necessary, and adjustments, if any, for the potential tax consequences, benefits or resolutions of audits or other tax contingencies. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in the United States. Our effective tax rate may be adversely affected by earnings being lower than anticipated in countries where we have lower statutory tax rates and higher than anticipated in countries where we have higher statutory tax rates. For the three months ended December 31, 2013, our international profits are lower as compared to the three months ended December 31, 2012, and therefore, the impact on our effective tax rate from our foreign operations is lower in the first quarter of fiscal 2014 as compared to prior year.

At December 31, 2013 and September 30, 2013, the liability for income taxes associated with uncertain tax positions was $20.1 million and $19.6 million, respectively, and is included in other long-term liabilities. If these benefits were recognized, they would favorably impact the effective tax rate. We do not expect a significant change in the amount of unrecognized tax benefits within the next twelve months.