8. Income taxes


	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Current income tax expense	$	1.3	$	0.8	$	3.6	$	2.6
Deferred income (benefit) expense		(17.2)		1.8		(42.1)		(16.8)
Total income tax (benefit) expense, net	$	(15.9)	$	2.6	$	(38.5)	$	(14.2)

For the three and nine months ended September 30, 2017 and 2016

Income tax benefit for the three months ended September 30, 2017 was $15.9 million. Expected income tax benefit for the same period, based on the Canadian enacted statutory rate of 26%, was $12.9 million. The primary items impacting the tax rate for the three months ended September 30, 2017 were $3.5 million related to a net increase to the Company's valuation allowances in Canada and $0.3 million of other permanent differences. These items were offset by $5.5 million relating to operating in higher tax rate jurisdictions and $1.3 million relating to foreign exchange.

Income tax expense for the three months ended September 30, 2016 was $2.6 million. Expected income tax benefit for the same period, based on the Canadian enacted statutory rate of 26%, was $20.2 million. The primary item impacting the tax rate for the three months ended September 30, 2016 was $22.5 million related to goodwill impairment. In addition, the rate was further impacted by a net increase to our valuation allowances of $8.6 million, consisting primarily of increases of $9.3 million in Canada related to capital loss on intercompany notes, $1.9 million relating to operating in higher tax rate jurisdictions and $0.8 million of other permanent differences.

Income tax benefit for the nine months ended September 30, 2017 was $38.5 million. Expected income tax benefit for the same period, based on the Canadian enacted statutory rate of 26%, was $24.1 million. The primary items impacting the tax rate for the nine months ended September 30, 2017 were $1.5 million related to a net increase to the Company's valuation allowances in Canada and $0.6 million relating to income taxes. These items were offset by $14.2 million relating to operating in higher tax rate jurisdictions and $2.3 million relating to foreign exchange.

Income tax benefit for the nine months ended September 30, 2016 was $14.2 million. Expected income tax benefit for the same period, based on the Canadian enacted statutory rate of 26%, was $32.2 million. The primary items impacting the tax rate for the nine months ended September 30, 2016 were $22.5 million relating to goodwill impairment, $5.5 million relating to foreign exchange and $1.1 million of other permanent differences. In addition, the rate was further impacted by a net increase to the Company’s valuation allowances of $13.2 million, consisting primarily of increases of $31.6 million in Canada related to losses and a decrease of $18.4 million in the United States due to tax restructurings and additional earnings. These items were offset by $18.5 million Canadian capital losses recognized on tax restructurings, $3.0 million related to capital loss on intercompany notes and $2.8 million relating to operating in higher tax rate jurisdictions.

As of September 30, 2017, we have recorded a valuation allowance of $ 187.5 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.