INCOME TAXES

Significant components of the provision for income taxes from continuing operations are as follows (in millions).



	Nine months ended March 31,
	2012		2013
Current:
Federal	$	2.2	$	11.5
State	2.8		0.2
Total current	5.0		11.7
Deferred:
Federal	13.4		13.9
State	0.7		0.4
Total deferred	14.1		14.3
Change in valuation allowance	1.3		(1.5		)
Total income tax expense	$	20.4	$	24.5

Income tax expense for the nine months ended March 31, 2013 includes the impact of releasing a $1.6 million valuation allowance for unitary state net operating loss carryforwards.

The Company assesses the realization of its deferred tax assets to determine whether an income tax valuation allowance is required. Based on all available evidence, both positive and negative, and the weight of that evidence to the extent such evidence can be objectively verified, the Company determines whether it is more likely than not that all or a portion of the deferred tax assets will be realized. The main factors that the Company considers include:


•	cumulative losses in recent years;


•	income/losses expected in future years;


•	unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels;


•	the availability, or lack thereof, of taxable income in prior carryback periods that would limit realization of tax benefits;


•	the carryforward period associated with the deferred tax assets and liabilities; and


•	prudent and feasible tax-planning strategies.

During the nine months ended March 31, 2013, management concluded that it was more likely than not that certain unitary state net operating loss deferred tax assets were realizable. Management based this determination on the Company having cumulative pre-tax income in recent years exclusive of nonrecurring expenses associated with its initial public offering as well as forecasted income in the net operating loss carryforward period. The Company continues to maintain valuation allowances on state net operating losses in states without cumulative pre-tax income and in states where net operating loss deductions have been suspended due to uncertainty surrounding its ability to utilize the net operating losses during the prescribed carryforward periods.

As of March 31, 2013, the Company had generated net operating loss carryforwards for federal income tax and state income tax purposes of approximately $3.4 million and $515.0 million, respectively. The federal and state net operating loss carryforwards expire from 2020 to 2029 and 2013 to 2030, respectively.

The Company’s U.S. federal income tax returns for tax years 2005 and beyond remain subject to examination by the Internal Revenue Service.