Note 11—Income Taxes

For the three and nine months ended March 31, 2017 and 2016, the effective tax rates which includes the impact of discrete items, were as follows:


	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
Effective tax rate provision (benefit)	(13.6)	%	63.1	%	7.9	%	43.7	%

Our effective tax rate differs from the US federal statutory income tax rate of 35.0%, due to the mix and levels between United States and foreign earnings. Included in the nine months ended March 31, 2017 was a benefit of $778 related to a reduction in the enacted UK statutory tax rate, an expense of $884 related to the finalization of certain audits and a benefit of $1,462 related to recognized benefits for liquidations of certain of the Company’s dormant subsidiaries. Excluding these discrete items, the effective tax rate for the nine months ended March 31, 2017 is lower than the statutory rate primarily due to the mix of earnings, which includes the impact of the debt extinguishment charges recorded associated with the Fifth Amendment (see Note 13).

In October 2015, the Mexican Tax Authorities concluded their audit of the 2008 tax year and issued an assessment. The Company has won a case in the Mexican Tax Court related to this assessment; however the Mexican tax authorities have appealed the result. The Company has been indemnified for all taxes payable and unrecognized tax positions by ASG from the prior owners.

During the nine months ended March 31, 2017 and 2016, cash paid for taxes was $10,651 and $10,036, respectively.