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INCOME TAXES
 3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES

The reconciliations of income tax expense with federal income taxes at the statutory rate are as follows (in millions of dollars):
 
Three Months Ended March 31,
 
2020
 
2019
Federal income tax
$
30

 
$
74

States income taxes, net of federal benefit
(2
)
 
10

Foreign rate difference
2

 
5

Goodwill impairment
2

 
—

Tax benefit related to the Fabory business
(82
)
 
—

Change in tax contingencies
3

 
—

Change in valuation allowance
3

 
1

Investment in foreign subsidiary
3

 
—

Other, net
(2
)
 
(1
)
Income tax (benefit) expense
$
(43
)
 
$
89

Effective tax rate
(30.4
)%
 
25.4
%


The Company's effective tax rate for the three months ended March 31, 2020 was negative 30.4% compared to 25.4% in the three months ended March 31, 2019. The negative tax rate this quarter was primarily driven by a tax benefit from losses in the Company’s investment in the Fabory business.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. The CARES Act did not have a material impact on the Company's consolidated financial condition or results of operations as of and for the three months ended March 31, 2020. The Company plans to defer the timing of federal tax estimates and payroll taxes as permitted by the CARES Act.