Earnings before income taxes comprised: Year Ended December 31, 2018 2017 2016 (Amounts in thousands) U.S.  $ 88,674 $ 102,372 $ 170,681 Non-U.S.  87,600 160,635 42,231 Total $ 176,274 $ 263,007 $ 212,912 2018 2017 2016 Balance — January 1 $ 51.5 $ 59.3 $ 56.1 Gross amount of (decrease) increase in unrecognized tax benefits resulting from tax positions taken: During a prior year (6.6 ) (3.5 ) 1.9 During the current period 4.0 5.5 14.3 Decreases in unrecognized tax benefits relating to: Settlements with taxing authorities (2.7) (10.8) (4.0) Lapse of the applicable statute of limitations (3.7 ) (3.1 ) (7.3 ) Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments (1.3) 4.1 (1.7) Balance — December 31 $ 41.2 $ 51.5 $ 59.3 A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): The amount of gross unrecognized tax benefits at December 31, 2018 was $54.1 million, which includes $12.9 million of accrued interest and penalties. Of this amount $53.6 million, if recognized, would favorably impact our effective tax rate. With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2016, state and local income tax audits for years through 2012 or non-U.S. income tax audits for years through 2011. We are currently under examination for various years in Austria, Canada, France, Germany, India, Indonesia, Italy, Japan, Mexico, Philippines, Saudi Arabia, Singapore, Thailand, the U.S. and Venezuela. It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense up to approximately $16 million within the next 12 months. Our business segments share a focus on industrial flow control technology and have a high number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively. We conduct our operations through these three business segments based on type of product and how we manage the business: • EPD for long lead time, custom and other highly-engineered pumps and pump systems, mechanical seals, auxiliary systems and replacement parts and related services; • IPD for engineered and pre-configured industrial pumps and pump systems and related products and services; and • FCD for engineered and industrial valves, control valves, actuators and controls and related services. 17.BUSINESS SEGMENT INFORMATION 103