Note 9. Income Taxes

The income tax provision represents the Company’s federal and state income tax obligations as well as foreign tax provisions. The Company’s income tax provision was $5.2 million and $11.5 million for the three and six months ended September 30, 2015, respectively. The Company’s income tax provision was $0.3 million and $0.6 million for the three and six months ended September 30, 2014, respectively. The estimated annual effective income tax rate is based upon estimated income before income taxes for the year, the geographical composition of the estimated income before taxes and estimated permanent differences. The estimated annual effective income tax rate can fluctuate and may differ from the actual tax rate recognized in fiscal 2016 for various reasons, including estimates of income before taxes, tax legislation, permanent differences, discrete items, and any adjustments between tax provision calculations and filed tax returns.

The significant differences between the statutory tax rate and effective tax rate for the three and six months ended September 30, 2015 and 2014 were as follows:


	For the Three Months Ended September 30,						For the Six Months Ended September 30,
	2015			2014			2015			2014
Statutory income tax rate		35.0	%		34.0	%		35.0	%		34.0	%
Increase (decrease) resulting from:
Losses not benefited		—			(26.0	)		—			(15.7	)
Credits		(1.2	)		—			(1.4	)		—
State taxes, net		3.3			—			3.3			—
Permanent differences		3.0			—			3.5			—
Other		0.2			—			0.6			2.6

Effective tax rate		40.3	%		8.0	%		41.0	%		20.9	%

The Company and its subsidiaries are subject to U.S. federal income tax, as well as income taxes in Germany and multiple state jurisdictions. All tax years remain subject to examination by the Internal Revenue Service and state tax authorities, because the Company has net operating loss and tax credit carryforwards which may be utilized in future years to offset taxable income, those years may also be subject to review by relevant taxing authorities if the carryforwards are utilized. Fiscal years 2012 through 2015 remain open to examination in Germany.