Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded net income tax expense of $1.7 million (6.72%) and $3.0 million (5.84%) during the three and six months ended June 30, 2020, respectively, which included discrete items. Tax expense of $237 thousand and $473 thousand resulted from certain discrete items related to stock compensation and uncertain tax positions during the three and six months ended June 30, 2020, respectively. The income tax expense, exclusive of discrete items, was $1.4 million (5.77%) and $2.5 million (4.91%) during the three and six months ended June 30, 2020, respectively. The Company expects its full year effective tax rate to be in the range of 5% to 6%.

     As of June 30, 2020 and December 31, 2019 a liability of $9.4 million and $9.2 million for uncertain tax positions is included in other long-term liabilities of the Company's Condensed Consolidated Balance Sheets. The Company increased this liability reserve during the three and six months ended June 30, 2020 by $137 thousand and $206 thousand, respectively, and zero for the three and six month periods ended June 30, 2019. The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense.

The Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. The CARES Act includes income and payroll tax provisions that we are in the process of analyzing to determine the financial impact on our condensed consolidated financial statements.