(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 month periods ended September 30, 2017 and 2016 is as follows:


	For the three months ended September 30,
	2017		2016
		(in millions)
Expected provision at the statutory rate	$	10.0	$	7.8
Increase/(decrease) due to:
Stock-based compensation		1.5		3.3
State income taxes benefit, net of federal benefit		0.6		0.7
Transaction costs not deductible for tax purposes		0.1		—
Change in statutory tax rate		—		(1.7)
Foreign tax rate differential		(2.2)		(0.7)
Change in valuation allowance		(5.7)		(2.4)
Other, net		1.1		(0.4)
Provision for income taxes	$	5.4	$	6.6

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 in which they occur.

The interim effective tax rate for the three months ended September 30, 2017 was positively impacted by lower tax rates on foreign earnings and foreign tax expense not recognized due to full valuation allowances recorded on certain foreign entities as well as reversing valuation allowances on deferred tax assets that are expected to be realized. The effective tax rate was negatively impacted by the smaller allowable deduction for stock-based compensation for tax purposes as compared to the book expense related to the Company’s Restricted Stock Unit plan (See Note 8 – Stock-based Compensation).

The interim effective tax rate for the three months ended September 30, 2016 was positively impacted by the United Kingdom (“UK”) tax rate decrease as well as foreign tax expense not recognized due to full valuation allowances recorded on certain foreign entities. The effective tax rate was negatively impacted by pre-IPO non-deductible stock-based compensation and the excess of GAAP stock compensation expense, related to the Company’s Restricted Stock Unit plan, over what is deductible for income tax purposes.

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.

As of September 30, 2017, the Company has a $0.2 million current liability for uncertain tax positions related to state taxing jurisdictions, including $0.1 million of accrued interest and penalties. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The entire balance is expected to be settled within the next year and would impact the effective tax rate if recognized.

As of September 30, 2017, the Company has removed the indefinite reinvestment assertion on several newly-operational foreign entities because it intends to remit the earnings. The Company has recorded an immaterial deferred tax liability in the quarterly tax provision. The indefinite reinvestment assertion remains for all other foreign subsidiaries.