Income Taxes

9 Months Ended

Sep. 30, 2020

At September 30, 2020, the Company had gross uncertain tax benefits of $95.1 million, of which $56.8 million, if recognized, would impact the effective tax rate.

The following is a reconciliation of the liability for uncertain tax positions (in millions):


Balance at December 31, 2019	$	109.1
Additions for tax positions	15.3
Reductions for tax positions	(29.3)
Balance at September 30, 2020	$	95.1

The Company recognizes interest and penalties accrued related to uncertain tax positions in income tax expense. The amounts recognized in income tax expense for interest and penalties during the three and nine months ended September 30, 2020 and 2019 were not significant.

The effective tax rate for the three months ended September 30, 2020 was 17.5%, compared with 19.5% for the three months ended September 30, 2019. The effective tax rate for the nine months ended September 30, 2020 was 19.1%, compared with 20.1% for the nine months ended September 30, 2019. The lower rate for 2020 reflects the results of tax planning initiatives and lower overall foreign tax expense partially offset by lower year over year tax benefits related to share-based payment transactions.

- Definition

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.

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