Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

    The Company recorded a net income tax benefit of $0.2 million (0.64%) and net income tax expense of $2.8 million (3.77%) during the three and nine months ended September 30, 2020, respectively, which included discrete items. Tax benefit of $2.4 million and $1.9 million resulted from certain discrete items related to stock compensation, return to provision adjustments and uncertain tax positions during the three and nine months ended September 30, 2020, respectively. The income tax expense, exclusive of discrete items, was $2.2 million (9.23%) and $4.7 million (6.31%) during the three and nine months ended September 30, 2020, respectively. The Company expects its full year effective tax rate to be in the range of 6% to 7%.

     As of September 30, 2020 and December 31, 2019 a liability of $8.0 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 decreased this liability reserve during the three and nine months ended September 30, 2020 by $1.4 million and $1.2 million, respectively. For the three and nine month periods ended September 30, 2019 there were no reductions to the liability. The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense.

Subsequent to February 29, 2020, 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 continuing to analyze to determine the financial impact on our condensed financial statements.