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INCOME TAXES
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The effective tax rate was 19.5% for the first quarter of 2021, compared to 18.0% for the first quarter of 2020. The effective tax rate was favorably impacted by tax benefits related to employee share based payments during the first quarter of 2021 and 2020. The significant components of the Company’s effective tax rate were consistent year over year.
At December 31, 2020, the Company had $227.0 million in unrecognized tax benefits, the recognition of which would have an effect of $216.3 million on the effective tax rate. Included in the balance of unrecognized tax benefits at December 31, 2020 was $16.8 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, 2020, the Company had accrued $30.3 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, 2020 during the three months ended March 31, 2021.
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. As a result of these audits, certain adjustments have been assessed. The Company has filed a protest and submitted additional information for consideration. The Company is evaluating the adjustments and believes that it is adequately reserved for any potential exposure. As of March 31, 2021, the federal statute of limitations had not expired for the 2013 through 2020 tax years.
At March 31, 2021, the Company is subject to non-U.S. income tax examinations for the tax years of 2013 through 2020. In addition, the Company is subject to state and local income tax examinations for the tax years 1998 through 2020.