Income Tax Matters

3 Months Ended

Mar. 31, 2020

The provision for income taxes consisted of the following for the periods presented (in millions of dollars):



	Quarter Ended
	March 31,
	2020		2019
Domestic	$	9.5	$	9.5
Foreign	0.1		0.3
Total	$	9.6	$	9.8

The income tax provision for the quarters ended March 31, 2020 and March 31, 2019 was $9.6 million and $9.8 million, respectively, reflecting an effective tax rate of 25% and 26%, respectively. There was no material difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2020.

The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2019 was primarily due to: (i) an increase of $0.4 million (1% of taxable income) related to non-deductible compensation expense and (ii) an increase of $0.7 million (2% of taxable income) related to the valuation allowance for certain state net operating losses, partially offset by a decrease of $0.5 million (1% of taxable income) for the recognition of excess tax benefits from stock-based compensation.

Our gross unrecognized benefits relating to uncertain tax positions were $3.9 million and $4.1 million at March 31, 2020 and December 31, 2019, respectively, of which, $0.4 million and $0.9 million would be recorded through our income tax provision and thus impact the effective tax rate at March 31, 2020 and December 31, 2019, respectively, if the gross unrecognized tax benefits were to be recognized.

We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months.

On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security ("CARES") Act to provide certain relief as a result of the Coronavirus Disease 2019 outbreak. We are currently evaluating how provisions in the CARES Act will impact our consolidated financial statements.