INCOME TAXES

The following is a reconciliation of the beginning and ending amounts of gross unrecognized tax benefits for uncertain tax positions, including positions which impact only the timing of tax benefits:



	Three Months Ended
	February 27, 2016		February 28, 2015
Unrecognized tax benefits at beginning of year	$	3,859	$	2,487
Additions for current period tax positions	144		175
Changes in interest and penalties	34		19
Unrecognized tax benefits at end of period	$	4,037	$	2,681

At February 27, 2016, the amount of unrecognized tax benefit that would impact the effective tax rate, if recognized, was $2,926. The Company recognizes interest and penalties related to unrecognized benefits in income tax expense. At February 27, 2016, the Company had $304 accrued for the payment of interest and penalties.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease by $282 over the next twelve months as a result of expected settlements with taxing authorities or the lapse of the statue of limitations in certain jurisdictions. Due to the various jurisdictions in which the Company files tax returns and the uncertainty regarding the timing of settlements, it is possible that there could be other significant changes in the amount of unrecognized tax benefits in the next twelve months; however, the amount cannot be estimated.

The Company is regularly audited by federal, state and foreign tax authorities. The Company's federal tax returns for years subsequent to fiscal year 2011 are open for examination. With few exceptions, the Company is no longer subject to income tax examinations by state or foreign tax jurisdictions for years prior to 2010.

The Company's effective tax rate increased 0.6 percentage points to 30.5% in the first quarter of 2016 from 29.9% in the first quarter of 2015. The Company's effective tax rate in the first quarter of 2016 reflected a 1.8 percentage point unfavorable impact from domestic manufacturing deduction adjustments related to the retroactive extension of bonus depreciation partially offset by a 1.0 percentage point favorable impact related to the extension of the research and development tax credit as well as a 0.2 percentage point favorable impact on other tax items.