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Income taxes
6 Months Ended
Jun. 30, 2019
Income taxes [Abstract]  
Income taxes
8. Income taxes

We recorded an income tax benefit for the second quarter of 2019 of $26 thousand at an effective tax rate of -16.3 %, compared to an income tax provision during the second quarter of 2018 of $305 thousand at an effective tax rate of 20.1%.  For the six months ended June 30, 2019, we recorded an income tax provision of $89 thousand at an effective tax rate of 8.7%, compared to an income tax provision during the six months ended June 30, 2018 of $483 thousand at an effective tax rate of 20.4%.  The effective tax rate for the both the second quarter of 2019 and six months ended June 30, 2019 was lower as it included the foreign-derived intangible income (“FDII”) deduction under the Tax Cuts and Jobs Act (the “Tax Reform Act”) as well as near breakeven pre-tax income in the second quarter of 2019.  The FDII deduction was not included in the effective tax rate for the second quarter of 2018 or six months ended June 30, 2018 as the interpretive guidance for the deduction was not yet released.

We are subject to U.S. federal income tax, as well as income tax in certain U.S. state and foreign jurisdictions.  We have substantially concluded all U.S. federal, state and local income tax, and foreign tax regulatory examination matters through 2014.  However, our federal tax returns for the years 2015 through 2017 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Condensed Consolidated Financial Statements.  

As of June 30, 2019, we had $104 thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.  We expect that $25 thousand of the $104 thousand of unrecognized tax benefits will reverse in 2019 upon the expiration of the statute of limitations.

We recognize interest and penalties related to uncertain tax positions in the income tax provision reported as "Deferred tax assets" in the Condensed Consolidated Balance Sheet.  As of June 30, 2019, we had $23 thousand of accrued interest and penalties related to uncertain tax positions.  The Company maintains a valuation allowance against certain deferred tax assets where realization is not certain.

In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income,” which provides a new standard that permits entities to make a one-time reclassification from accumulated other comprehensive loss (“AOCL”) to retained earnings for the stranded tax effects resulting from the newly enacted corporate tax rates under the Tax Reform Act. We adopted ASU 2018-02 on January 1, 2019 and elected not to reclassify the income tax effects of the Tax Reform Act from AOCL to retained earnings.  We continue to release disproportionate income tax effects from AOCL based on the aggregate portfolio approach.  The adoption of ASU 2018-02 did not have an impact on our Condensed Consolidated Financial Statements.