INCOME TAXES

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate was 18.0% for the first quarter of 2020, compared to 17.9% for the first quarter of 2019. The effective tax rate was favorably impacted by tax benefits related to employee share based payments during the first quarter of 2020 and 2019. The significant components of the Company's effective tax rate were consistent year over year.

In response to the COVID-19 outbreak, global legislation concerning income taxes was passed in March 2020. The Company is still assessing the applicability of the stimulus elements within the global legislation, however, it is not expected to have a material impact on the Company's consolidated financial statements.

At December 31, 2019, the Company had $203.0 million in unrecognized tax benefits, the recognition of which would have an effect of $195.3 million on the effective tax rate. Included in the balance of unrecognized tax benefits at December 31, 2019 was $17.3 million related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months.

The Company classifies all income tax related interest and penalties as income tax expense. At December 31, 2019, the Company had accrued $26.2 million for the potential payment of income tax interest and penalties.

There were no significant changes to any of the balances of unrecognized tax benefits at December 31, 2019 during the three months ended March 31, 2020.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The IRS is currently auditing the Company's 2013, 2014, 2015 and 2016 income tax returns. No significant adjustments have been proposed by the IRS. At March 31, 2020, the federal statute of limitations had not expired for the 2013 through 2019 tax years.

At March 31, 2020, the Company is subject to non-U.S. income tax examinations for the tax years of 2013 through 2019. In addition, the Company is subject to state and local income tax examinations for the tax years 1998 through 2019.