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Income Taxes
6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

During the six months ended June 30, 2019 and 2020, the Company recorded income tax expense of $24.9 million and $24.7 million, reflecting an effective tax rate of 40.9% and 26.3%, respectively.
In February 2019, to align compensation and benefit plans after completion of the merger with CEC, the Compensation Committee of the Company’s Board of Directors took action to terminate all deferred compensation arrangements, including for employees already participating in such arrangements. These changes affected the tax deductibility of certain arrangements, which resulted in a discrete item recorded during the three months ended March 31, 2019, reducing the Company’s deferred tax assets by $11.5 million and increasing the Company’s 2019 effective tax rate and future cash tax payments.
The Company had $1.2 million of unrecognized tax benefits as of December 31, 2019 and June 30, 2020. Interest and penalties, including those related to uncertain tax positions, are included in the provision for income taxes in the unaudited condensed consolidated statements of income. The Company incurred approximately $105,000 and $39,000 related to interest and penalties during the six months ended June 30, 2019 and 2020, respectively.
The Company paid $24.7 million and $16.2 million in income taxes during the six months ended June 30, 2019 and 2020, respectively.
The tax years since 2016 remain open for Federal tax examination and the tax years since 2015 remain open to examination by state and local taxing jurisdictions in which the Company is subject to taxation.