Business is conducted in various countries throughout the world and is subject to tax in numerous jurisdictions. A significant number of tax returns that are filed are subject to examination by various Federal, state and local tax authorities. Tax examinations are often complex, as tax authorities may disagree with the treatment of items reported requiring several years to resolve. Liabilities are established for possible assessments by tax authorities resulting from known tax exposures including, but not limited to, transfer pricing matters, tax credit deductibility of certain expenses, and deemed repatriation transition tax. Such liabilities represent a reasonable provision for taxes ultimately expected to be paid and may need to be adjusted over time as more information becomes known. The effect of changes in estimates related to contingent tax liabilities is included in the effective tax rate reconciliation above. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (excluding interest and penalties): Accrued interest and penalties payable for unrecognized tax benefits are included in either current or non-current income taxes payable. Interest and penalties related to unrecognized tax benefits are included in income tax expense. BMS is currently under examination by a number of tax authorities which have proposed or are considering proposing material adjustments to tax positions for issues such as transfer pricing, certain tax credits and the deductibility of certain expenses. It is reasonably possible that new issues will be raised by tax authorities which may require adjustments to the amount of unrecognized tax benefits; however, an estimate of such adjustments cannot reasonably be made at this time. It is also reasonably possible that the total amount of unrecognized tax benefits at December 31, 2019 could decrease in the range of approximately $290 million to $330 million in the next twelve months as a result of the settlement of certain tax audits and other events. The expected change in unrecognized tax benefits may result in the payment of additional taxes, adjustment of certain deferred taxes and/or recognition of tax benefits. The following is a summary of major tax jurisdictions for which tax authorities may assert additional taxes based upon tax years currently under audit and subsequent years that will likely be audited: 81 U.S. 2008 to 2019 Canada 2012 to 2019 France 2016 to 2019 Germany 2008 to 2019 Italy 2015 to 2019 Japan 2014 to 2019 Switzerland 2015 to 2019 UK 2012 to 2019 Year Ended December 31, Dollars in Millions 2019 2018 2017 Unrecognized tax benefits that if recognized would impact the effective tax rate $ 1,809 $ 853 $ 1,002 Accrued interest 292 167 148 Accrued penalties 10 11 15 Dollars in Millions 2019 2018 2017 Balance at beginning of year $ 995 $ 1,155 $ 995 Gross additions to tax positions related to current year 170 48 173 Gross additions to tax positions related to prior years 19 21 30 Gross additions to tax positions assumed in acquisitions 852 — — Gross reductions to tax positions related to prior years (35 ) (106 ) (22 ) Settlements (23) 2 (20) Reductions to tax positions related to lapse of statute (72 ) (119 ) (13 ) Cumulative translation adjustment (1) (6) 12 Balance at end of year $ 1,905 $ 995 $ 1,155 Year Ended December 31, Additional information regarding unrecognized tax benefits is as follows: