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Income taxes
6 Months Ended
Jun. 30, 2021
Income taxes [Abstract]  
Income taxes
10. Income taxes

We recorded an income tax benefit for the second quarter of 2021 of $687 thousand at an effective tax rate of 24.5%, compared to an income tax benefit for the second quarter of 2020 of $921 thousand at an effective tax rate of 33.2%.  For the six months ended June 30, 2021,  we recorded an income tax benefit of $1.2 million at an effective tax rate of 22.3%, compared to an income tax benefit for the six months ended June 30, 2020 of $1.4 million at an effective tax rate of 32.8%The effective tax rate for the second quarter and first six months of 2020 was higher than the comparable 2021 periods as it included the impact of our net operating loss (“NOL”) that we incurred during 2020 and will carry back to prior years.  The CARES Act enacted on March 27, 2020 permits NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.  We generated an NOL in 2020, which we will carry back to tax years that had a federal statutory tax rate of 34% compared to 21% in 2020.

We are subject to U.S. federal income tax, as well as income tax in certain U.S. states and foreign jurisdictions.  We have substantially concluded all U.S. federal, state and local income tax, and foreign tax regulatory examination matters through 2016.  However, our federal tax returns for the years 2017 through 2019 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, 2021, we had $121 thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.  We expect $24 thousand of the $121 thousand of unrecognized tax benefits will reverse in the third quarter of 2021 upon the expiration of the applicable statute of limitations.

We recognize interest and penalties related to uncertain tax positions in the income tax provision.  As of June 30, 2021, we had $25 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.