9. Income taxes


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Current income tax expense	$	0.3	$	6.2	$	1.8	$	7.3
Deferred tax benefit		(18.7)		(3.3)		(18.6)		(9.0)
Total income tax (benefit) expense, net	$	(18.4)	$	2.9	$	(16.8)	$	(1.7)

For the three and six months ended June 30, 2016 and 2015

Income tax benefit for the three months ended June 30, 2016 was $18.4 million. Expected income tax benefit for the same period, based on the Canadian enacted statutory rate of 26% was $9.0 million. The primary items impacting the tax rate for the three months ended June 30, 2016 were $4.6 million related to capital gain on intercompany notes, $2.6 million related to foreign exchange, $1.8 million relating to a change in the valuation allowance and $0.4 million of other permanent differences. These items were partially offset by $18.8 million related to capital loss recognized on tax restructuring.

Income tax expense for the three months ended June 30, 2015 was $2.9 million. Expected income tax expense for the same period, based on the Canadian enacted statutory rate of 26%, was $4.4 million. The primary items impacting the tax rate for the three months ended June 30, 2015 were $9.0 million relating to a change in the valuation allowance, $3.4 million of dividend withholding and other state taxes, and $2.5 million of other permanent differences. These items were partially offset by $3.6 million relating to tax credits, $2.4 million relating to foreign exchange and $1.6 million relating to operating in higher tax rate jurisdictions.

Income tax benefit for the six months ended June 30, 2016 was $16.8 million. Expected income tax benefit for the same period, based on the Canadian enacted statutory rate of 26%, was $12.0 million. The primary items impacting the tax rate for the six months ended June 30, 2016 were $5.1 million relating to foreign exchange, $4.6 million relating to a change in the valuation allowance, $4.2 million related to capital gain on intercompany notes and $0.1 million of other permanent differences. These items were partially offset by $18.8 million related to capital loss recognized on tax restructuring.

Income tax benefit for the six months ended June 30, 2015 was $1.7 million. Expected income tax expense for the same period, based on the Canadian enacted statutory rate of 26%, was $0.8 million. The primary items impacting the tax rate for the six months ended June 30, 2015 were $4.1 million relating to foreign exchange, $4.0 million relating to operating in higher tax rate jurisdictions, $3.6 million related to tax credits, and $0.6 million of other permanent differences. These items were partially offset by $6.2 million relating to a change in the valuation allowance, and $3.6 million relating to dividend withholding and other taxes.

As of June 30, 2016, we have recorded a valuation allowance of $179.8 million. The amount is comprised primarily of provisions against Canadian and U.S. net operating loss carryforwards. In assessing the recoverability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon projected future taxable income in the United States and in Canada and available tax planning strategies.