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:



	Six Months Ended
	May 28, 2016		May 30, 2015
Unrecognized tax benefits at beginning of year	$	3,859	$	2,487
Additions for current period tax positions	636		284
Additions related to acquired tax positions	—		1,052
Changes in interest and penalties	86		99
Unrecognized tax benefits at end of period	$	4,581	$	3,922

At May 28, 2016, the amount of unrecognized tax benefit that would impact the effective tax rate, if recognized, was $3,280. The Company recognizes interest and penalties related to unrecognized benefits in income tax expense. At May 28, 2016, the Company had $337 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 statute 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 was 32.4% in both the second quarter of 2016 and the second quarter of 2015. The Company's effective tax rate in the second quarter of 2016 increased due to the rise in domestic earnings as a result of the proceeds from the TransWeb/3M litigation satisfaction of judgment (see Note 12) offset by decreases resulting from the benefits of the renewed research and development tax credit as well as a favorable tax impact from the adjustment to the Filter Resources contingent liability discussed in Note 2. The effective tax rate for the first six months of 2016 increased 0.5% to 31.9% from 31.4% in the first six months of 2015. This increase was primarily driven by the increase in domestic earnings as noted above during the second quarter of 2016 as well as adjustments in the first quarter of 2016 to reflect the unfavorable impact from domestic manufacturing deduction adjustments related to the retroactive extension of bonus depreciation, partially offset by the favorable impact related to the extension of the research and development tax credit.