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Income Taxes
 6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The gross liability for unrecognized tax benefits at June 30, 2019 and December 31, 2018 was $15,479 and $14,367, respectively, exclusive of interest and penalties, of which $15,126 and $13,774 would affect the effective tax rate if the Company were to recognize the tax benefit.
The Company classifies interest and penalties on unrecognized tax benefits as income tax expense. As of June 30, 2019 and December 31, 2018, the combined amount of accrued interest and penalties related to tax positions taken on tax returns was $1,677 and $1,289, respectively.
 
June 30, 2019
 
December 31, 2018
Gross liability for unrecognized tax benefits, exclusive of interest and penalties
$
15,479

 
$
14,367

Interest and penalties on unrecognized benefits
1,677

 
1,289

Total gross uncertain tax positions
$
17,156

 
$
15,656

Amount included in Current liabilities
$
2,964

 
$
3,131

Amount included in Other long-term liabilities
14,192

 
12,525

 
$
17,156

 
$
15,656


The Company's effective income tax rate for the three and six months ended June 30, 2019 and 2018 differs from the federal income tax statutory rate due to the following:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Statutory rate
 
21.0
 %
 
21.0
 %
 
21.0
 %
 
21.0
 %
State taxes, net of federal tax benefit
 
2.6

 
2.3

 
2.6

 
2.3

Foreign tax expense and tax rate differential
 
(0.1
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
Tax benefit from stock option exercises
 
(1.1
)
 
(2.0
)
 
(1.1
)
 
(6.5
)
Other, net
 
(0.3
)
 
(0.1
)
 
(0.3
)
 
(0.2
)
 
 
22.1
 %
 
21.1
 %
 
22.1
 %
 
16.5
 %

The increase in the Company's effective tax rate for the three and six months ended June 30, 2019 was primarily due to reduced tax benefits related to the lower volume of stock option exercises as compared to the three and six months ended June 30, 2018.
The Company files income tax returns in the United States on a consolidated basis and in many U.S. state and foreign jurisdictions. The Company is subject to examination of income tax returns by the Internal Revenue Service (IRS) and other domestic and foreign tax authorities. The Company is no longer subject to U.S. federal income tax examination for years before 2015 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2014.
The Company estimates it will recognize $2,964 of gross unrecognized tax benefits. This amount is expected to be paid within one year or to be removed at the expiration of the statute of limitations and resolution of income tax audits and is netted against the current payable account. These unrecognized tax benefits are related to tax positions taken on certain federal, state, and foreign tax returns. However, the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ
materially from the amounts accrued for each year. While it is reasonably possible that some issues under examination could be resolved in the next twelve months, based upon the current facts and circumstances, the Company cannot reasonably estimate the timing of such resolution or the total range of potential changes as it relates to the current unrecognized tax benefits that are recorded as part of the Company’s financial statements.