The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

As of December 31, 2019, the Company had unrecognized tax benefits amounting to $31,029, including an amount of $29,835, which, if recognized, would impact the Company’s ETR.

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions for the three months ended March 31, 2020:

	2020
Opening balance at January 1	$	31,029
Decrease related to prior year tax positions		(65	)
Effect of exchange rate changes		(1,270	)
Closing balance at March 31	$	29,694

The Company’s unrecognized tax benefits as of March 31, 2020 include an amount of $28,500, which, if recognized, would impact the Company’s ETR. As of December 31, 2019 and March 31, 2020, the Company had accrued approximately $5,812 and $5,724, respectively, in interest relating to unrecognized tax benefits.

During the year ended December 31, 2019 and the three months ended March 31, 2020, the company recognized approximately $826 and $193, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2019 and March 31, 2020, the Company had accrued approximately $1,084 and $1,068, respectively, for penalties.