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Note 13. Income Taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Note 13. Income Taxes

In determining the quarterly provision for income taxes, the Company used a discrete effective tax rate method based on statutory tax rates for 2019 and an estimated annual effective tax rate for 2018. Our periodic effective income tax rate is affected by the relative mix of pre-tax earnings or losses and underlying income tax rates applicable to the various taxing jurisdictions.

 

Income tax expense for the second quarter of 2019 was $5,896 compared to an income tax benefit of $890 for the second quarter of 2018.  Income tax expense for the first six months of 2019 was $7,640 compared to an income tax benefit of $1,687 for the first six months of 2018.  The variance in income taxes between 2019 and 2018 is attributable to taxes on income generated by the investment partnerships.

 

As of June 30, 2019 and December 31, 2018, we had approximately $352 and $341, respectively, of unrecognized tax benefits, which are included in other liabilities in the consolidated balance sheets.