The Company’s income tax provision was $16.5 million for the three months ended June 30, 2020, and the income tax provision was $14.2 million for the three months ended June 30, 2019. The Company’s effective tax rate was 27.0% and 13.8% for the three

months ended June 30, 2020 and 2019, respectively. The Company’s U.S. federal statutory corporate income tax rate of 21% was applied in the computation of the income tax provision for the three months ended June 30, 2020 and 2019.

The significant differences between the statutory income tax rate and effective income tax rate for the three months ended June 30, 2020 and 2019 were as follows:

	For the Three Months Ended June 30,
		2020			2019
Statutory income tax rate		21.0		%	21.0		%
Increase (decrease) resulting from:
Excess tax benefits from stock-based awards		(0.9	)		(12.4	)
Credits		(1.9	)		(1.6	)
State taxes, net		3.9			3.4
Permanent differences		5.0			1.9
Other		(0.1	)		1.4
Effective tax rate		27.0		%	13.8		%

The Company recognizes excess tax benefits and shortfalls in the income tax provision as discrete items in the period in which restricted stock units vest or stock option exercises occur. The Company recognized excess tax benefits associated with stock-based awards of $0.5 million and $12.8 million as an income tax benefit for the three months ended June 30, 2020 and 2019, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during each period. The amount of future excess tax benefits or shortfalls will likely fluctuate from period to period based on the price of the Company’s stock, the number of restricted stock units that vest or stock options that are exercised, and the fair value assigned to such stock-based awards under U.S. GAAP.

The Company is subject to the examination of its income tax returns by the Internal Revenue Service (“IRS”) and other tax authorities. The outcome of these audits cannot be predicted with certainty. The Company’s management regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the Company’s provision for income taxes. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. The Company’s most recent income tax audits were in the U.S. relating to fiscal year 2016 and in Germany, which covered fiscal years 2012 through 2015. These audits did not materially impact our financial statements. All other tax years remain subject to examination by the federal, state and foreign tax authorities.

On March 27, 2020 the House passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and the President of the United States signed the legislation into law. The Company does not expect the provisions of the legislation to have a significant impact on the effective tax rate or the income tax payable and deferred income tax positions of the Company.