|6 Months Ended|
Jun. 30, 2019
|Income Tax Disclosure [Abstract]|
|Income Taxes||Income Taxes
The Company's tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete events arising in each respective quarter. During each interim period, the Company updates the estimated annual effective tax rate which is subject to significant volatility due to several factors, including the Company's ability to accurately predict the income (loss) before provision for income taxes in multiple jurisdictions, the effects of acquisitions, the integration of those acquisitions, and changes in tax law. In circumstances where the Company is unable to predict income (loss) in multiple jurisdictions, the actual year to date effective tax rate may be the best estimate of the annual effective tax rate for purposes of determining the interim provision for income tax.
The Company recorded an expense from income tax of $2.1 million and a benefit from income tax of $7.6 million for the three and six months ended June 30, 2019, respectively. The effective tax rate was 33.5% and 22.8% for the three and six months ended June 30, 2019, respectively. Of the $7.6 million benefit from income tax recorded for the six months ended June 30, 2019, $8.2 million relates to the tax accounting effects of the sale of Medix.
The Company recorded a benefit for income tax of $3.6 million and $5.0 million for the three and six months ended June 30, 2018, respectively. The effective tax rate was 58.3% and 46.7% for the three and six months ended June 30, 2018, respectively.
The decrease in the effective tax rate for the three and six months ended June 30, 2019 compared with the three and six months ended June 30, 2018 is primarily attributable to the tax accounting effects of the sale of Medix. The Company's effective tax rate for the three and six months ended June 30, 2019 differed from the federal statutory rate of 21% primarily due to the tax accounting effects of the sale of Medix. Other significant factors that impact the effective tax rate are Federal and California research and development credits, non-deductible executive compensation expenses, and inclusions related to global intangible low-taxed income.
The Company recorded $0.2 million of net tax expense related to unrecognized tax benefits for the three and six months ended June 30, 2019, primarily due to the increase in uncertain tax positions related to the prior year. Within the next twelve months, it is possible that the uncertain tax benefit may change with a range of approximately zero to $3.8 million. The Company's tax returns remain open to examination as follows: U.S Federal, 2015 through 2018, U.S. states, 2014 through 2018, and significant foreign jurisdictions, generally 2014 through 2018.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef