INCOME TAXES

Our tax provision for the thirteen and twenty-six week periods ended July 3, 2016 consisted of taxes accrued in the U.S. and foreign jurisdictions. We continue to record a valuation allowance against a portion of our U.S. and foreign deferred tax assets as we do not believe it is more likely than not that we will be able to utilize the deferred tax assets in future periods.

Deferred Income Taxes

Net deferred tax assets were classified on the balance sheet as follows (in thousands):



	July 3, 2016			December 31, 2015
Deferred tax assets – current	$	—		$	10,566
Deferred tax assets – non-current	18,125			6,719
Deferred tax liabilities – current	—			(441		)
Deferred tax liabilities – non-current	(5,560		)	(5,187		)
Net deferred tax assets	$	12,565		$	11,657
Valuation allowance	$	3,480		$	3,562

Unrecognized Tax Benefits

During the thirteen and twenty-six week periods ended July 3, 2016, unrecognized tax benefits, interest and penalties increased by $1.7 million and $7.1 million, respectively, primarily due to accruals related to the business we acquired in December 2015 of $1.1 million and $6.3 million, respectively.

We recognize interest and penalties related to unrecognized tax benefits in tax expense.

For our major tax jurisdictions, the following years were open for examination by the tax authorities as of July 3, 2016:



Jurisdiction		Open Tax Years
U.S.		2012 and forward
The Netherlands		2013 and forward
Czech Republic		2013 and forward