8. Income Taxes

The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 35% to income before income taxes for the three months ended September 30, 2015 and 2014 due to the following (in thousands):


	2015					2014
Computed “expected” tax expense	$	57,875		35.0	%	$	47,794		35.0	%
Changes resulting from:
Foreign income tax differential		(5,860	)	(3.5	)		(6,073	)	(4.5	)
State taxes net of federal benefits		2,501		1.5			1,597		1.2
Foreign-sourced nontaxable income		(2,344	)	(1.4	)		(4,218	)	(3.1	)
Domestic production activities deduction		(7,950	)	(4.8	)		—		—
Other		4,365		2.6			1,945		1.5

Provision for income taxes	$	48,587		29.4	%	$	41,045		30.1	%

The Company recorded favorable tax adjustments related to U.S. planning initiatives that were implemented during the third quarter of 2015. The impact of those adjustments, which involved amending tax returns for several prior years, was approximately $7.9 million.