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 28, 2015		March 1, 2014
Unrecognized tax benefits at beginning of year	$	2,487	$	2,155
Additions for current period tax positions	175		79
Changes in interest and penalties	19		33
Unrecognized tax benefits at end of period	$	2,681	$	2,267

At February 28, 2015, the amount of unrecognized tax benefit that would impact the effective tax rate, if recognized, was $1,678. The Company recognizes interest and penalties related to unrecognized benefits in income tax expense. At February 28, 2015, the Company had $289 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 $250 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 2010 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 2009.

As part of the purchase of the Stanadyne Business on May 1, 2014, the Company acquired approximately $45,500 of federal net operating loss carryforwards and $1,700 of general business credits, which are subject to certain annual restrictions on utilization. These balances are estimated pending the completion and filing of the pre-acquisition federal return of the Stanadyne Business. The Company expects to finalize the purchase price allocation with respect to these attributes within one year of the purchase date.