Income tax expense attributable to income from operations consists of the following for the fiscal years ended in thousands):

 

The following is a reconciliation of expected income tax expense (benefit) (computed by applying the federal statutory income tax rate to income before taxes) to actual income tax expense (benefit) (in thousands):

 

The deferred income tax asset and liability balances at in thousands) include:

 

 

The deferred tax balances are classified in the Consolidated Balance Sheets as follows at in thousands):

 

Current deferred tax assets and liabilities and non-current deferred tax assets and liabilities have been presented net in the Consolidated Balance Sheets.

 

We evaluate our deferred taxes to determine if the “more likely than standard of evidence has been met thereby supporting the need for a valuation allowance. A valuation allowance must be established for deferred tax assets when it is less than likely that assets will be realized. At of and such an allowance was in place against the Belgian foreign tax assets, and at this valuation allowance was approximately million.

 

The Company’s deferred income tax assets at with respect to the net operating losses expire as follows (in thousands):

 

Deferred U.S. federal income taxes are provided for unremitted foreign earnings of our foreign subsidiaries because we expect those earnings will be permanently reinvested.

 

 

We recognize interest and penalties related to income tax matters as a component of income tax expense. If the million of unrecognized tax benefits and related interest and penalties as of were recognized, approximately million would be recorded as a benefit to income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits including related interest and penalties as of and is as follows (in thousands):

 

It is reasonably possible that various issues relating to approximately million of the total gross unrecognized tax benefits as of will be resolved within the next months as exams are completed or statutes expire. If recognized, approximately million of unrecognized tax benefits would reduce our tax expense in the period realized. However, actual results could differ from those currently anticipated.

 

The Company conducts business globally and, as a result, the Company or or more of its subsidiaries files income tax returns in the U.S., various state, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by the taxing authorities in such major jurisdictions as the U.S. Canada, Mexico, Belgium and Honduras. As of the Company and certain subsidiaries are currently under audit from through in the U.S. While the amount of uncertain tax benefits with respect to the entities and years under audit change within the next months, it is anticipated that any of the changes will be significant.