Income Tax Matters

3 Months Ended

Mar. 31, 2019

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



	Quarter Ended
	March 31,
	2019		2018
Domestic	$	9.5	$	5.6
Foreign	0.3		0.3
Total	$	9.8	$	5.9

The income tax provision for the quarters ended March 31, 2019 and March 31, 2018 was $9.8 million and $5.9 million, respectively, reflecting an effective tax rate of 26% and 19%, respectively. 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.

The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2018 was primarily due to: (i) a decrease of $1.8 million (6% of taxable income) for the recognition of excess tax benefits from stock-based compensation and (ii) a decrease of $0.8 million (3% of taxable income) related to the valuation allowance for certain state net operating losses, partially offset by an increase of $0.6 million (2% of taxable income) related to non-deductible compensation expense.

Our gross unrecognized benefits relating to uncertain tax positions were $1.5 million at both March 31, 2019 and December 31, 2018. If and when the gross unrecognized tax benefits are recognized, $0.4 million will be reflected in our income tax provision and thus affect the effective tax rate in future periods.

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