Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision for interim periods is determined using an estimated annual effective tax rate adjusted for discrete items, if any, which are taken into account in the quarterly period in which they occur. We review and update our estimated annual effective tax rate each quarter. We recorded an income tax provision of $0.7 million and $5.9 million for the three and six months ended June 30, 2020, respectively, based on our estimated annual 2020 effective tax rate. We recognized an income tax provision of $4.8 million and $2.7 million for the three and six months ended June 30, 2019, respectively, based on our estimated annual 2019 effective tax rate adjusted for discrete items.

At June 30, 2020 and December 31, 2019, we had deferred tax assets, net of deferred tax liabilities and valuation allowance, of $7.2 million and $12.6 million, respectively.

We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes line in the consolidated statements of operations. During the six months ended June 30, 2020, we recognized an immaterial amount of interest expense in the consolidated statements of operations associated with our unrecognized tax benefits.

At June 30, 2020 and December 31, 2019, we had net reserves of $35.4 million and $34.8 million, respectively, for unrecognized tax benefits, which are recorded as a component of other long-term liabilities within our consolidated balance sheets.