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Income Taxes
3 Months Ended
Dec. 29, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The effective tax rate was 36.3% and 35.8% for the first quarter of fiscal years 2013 and 2012, respectively. The effective tax rate for the first quarter of fiscal 2013 was impacted by such items as the domestic production deduction, state income taxes and losses in foreign jurisdictions and related valuation allowances.
Unrecognized tax benefits were $139 million and $168 million at December 29, 2012, and September 29, 2012, respectively. This change is primarily a result of audit settlements related to temporary differences. Substantially all of the unrecognized tax benefits, if recognized, would impact our effective tax rate.
We classify interest and penalties on unrecognized tax benefits as income tax expense. At December 29, 2012, and September 29, 2012, before tax benefits, we had $62 million and $64 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
We are subject to income tax examinations for U.S. federal income taxes for fiscal years 2003 through 2011, and for foreign, state and local income taxes for fiscal years 2001 through 2011. During the next twelve months, it is reasonably possible the amount of unrecognized tax benefits could change, but such changes are anticipated to be immaterial in amount.