Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded net income tax benefit of $217 thousand (1.46%) and $297 thousand (.44%) during the three and nine months ended September 30, 2019, respectively, which included discrete items. The primary discrete item is the tax benefit of $1.16 million and $5.32 million recorded during the three and nine months ended September 30, 2019, respectively, related to deferred tax true-up pertaining to tax carrying value of assets versus carrying value as per the accounting books. The income tax expense exclusive of discrete items was $947 thousand (6.38%) and $5.03 million (7.38%) during the three and nine months ended September 30, 2019, respectively. Our tax expense and effective tax rate has decreased year-over-year due to the recording of a one-time Transition tax liability last year resulting from the enactment of the Tax Cuts and Jobs Act (“TCJA”). The Company expects its full year effective tax rate to be in the range of 6% to 7%.

     As of September 30, 2019 and December 31, 2018 a liability of $9.3 million for uncertain tax positions is included in other long-term liabilities of the Company's Condensed Consolidated Balance Sheet. During the nine months ended September 30, 2019 and 2018, there was zero and $88 thousand increase to this liability reserve, respectively. The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense.