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INCOME TAXES
6 Months Ended
Jun. 30, 2018
INCOME TAXES  
INCOME TAXES

 

NOTE 6—INCOME TAXES

 

The Company’s effective tax rate for the three and six months ended June 30, 2018 was 6.4% and 4.1% based on pretax income of $2.5 million and $2.6 million, respectively.  The Company’s effective tax rate for the quarter was less than the statutory rate primarily due to the impact of current quarter earnings in jurisdictions where the Company is currently precluded from recording a tax provision. The effective tax rate was (75.2)% and (51.1)% for the three and six months ended June 30, 2017.  The difference was primarily due to the impact of current quarter earnings in jurisdictions where the Company is currently precluded from recording a tax provision for the six months ended June 30, 2018 and the release of $0.7 million of accruals for uncertain tax positions due to the expiration of statute limitations in a foreign jurisdiction during the three months ended June 30, 2018.

 

As of June 30, 2018, the Company had total unrecognized tax benefits of approximately $3.4 million all of which would impact the Company’s effective tax rate if recognized.  The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax provision in its condensed consolidated statement of operations.  As of June 30, 2018, the Company’s accrual of interest and penalties amounted to $1.0 million.  The Company recorded no material year-to-date change in accrual of unrecognized tax benefits and associated interest and penalties.