Note 8. Income Taxes

As of June 26, 2016, the Company had a gross amount of unrecognized tax benefits of $290,800 ($191,900 net of federal benefit). As of March 27, 2016, the Company had a gross amount of unrecognized tax benefits of $290,400 ($188,800 net of federal benefit).

The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as part of the provision for income taxes. The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for the first three months of fiscal 2017 was $13,400 (net of federal benefit). The cumulative amount included in the consolidated balance sheet as of June 26, 2016 was $350,600 (net of federal benefit). The total amount of interest and penalties related to tax uncertainties recognized in the consolidated statement of income for the first three months of fiscal 2016 was $15,900 (net of federal benefit). The cumulative amount of interest and penalties included in the consolidated balance sheet as of March 27, 2016 was $339,800 (net of federal benefit).

A reconciliation of the changes in the gross balance of unrecognized tax benefits, excluding interest is as follows:



Beginning balance at March 27, 2016 of unrecognized tax benefit	$	290,400
Increases related to current period tax positions		400
Reductions as a result of a lapse in the applicable statute of limitations		—
Ending balance at June 26, 2016 of unrecognized tax benefits	$	290,800