(6) INCOME TAXES

A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the three and nine month periods ended March 31, 2017 and 2016 is as follows:


	Three months ended March 31,				Nine months ended March 31,
	2017		2016		2017		2016
	(in millions)
Expected expense/(benefit) at the statutory rate	$	9.6	$	(3.9)	$	24.4	$	(8.2)
Increase/(decrease) due to:
Non-deductible stock-based compensation		—		5.2		4.0		22.6
Excess tax benefit on stock-based compensation		(13.1)		—		(16.7)		—
State income taxes benefit, net of federal benefit		0.6		(0.2)		2.1		(0.7)
Transactions costs not deductible for tax purposes		1.5		0.6		1.8		1.1
Change in tax rates		—		—		(1.7)		—
Foreign tax rate differential		(1.8)		0.5		(2.1)		0.8
Foreign entities with valuation allowance		(2.0)		—		(8.7)		—
Other, net		5.8		5.6		4.3		6.0
Provision/(benefit) for income taxes	$	0.6	$	7.8	$	7.4	$	21.6

The interim period effective tax rate is driven from year-to-date and anticipated pre-tax book income for the full fiscal year adjusted for anticipated items that are deductible/non-deductible for tax purposes only (i.e., permanent items). Additionally, the tax expense or benefit related to discrete permanent differences in an interim period are recorded in the period they occur.

The interim effective tax rate for the three and nine months ended March 31, 2017 was positively impacted by foreign tax expense not recognized due to full valuation allowances recorded on certain foreign entities. Additionally, the excess tax benefit for the greater allowable deduction for stock-based compensation for tax purposes compared to the book expense related to the Company’s restricted stock unit plans (See Note 8 – Stock-based Compensation) was recorded as a discrete permanent benefit during the period.

The interim effective tax rate for the three and nine months ended March 31, 2016 and nine months ended March 31, 2017 was negatively impacted by stock-based compensation expense related to the common units of Communications Infrastructure Investments, LLC (“CII”). During the three months ended December 31, 2016, the CII common units became fully vested and as such the Company did not record any non-deductible stock based compensation during the three months ended March 31, 2017.

The Company files income tax returns in various federal, state, and local jurisdictions including the United States, Canada, United Kingdom and France. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities in major tax jurisdictions for years before 2012.