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Income Taxes
9 Months Ended
Jun. 27, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The effective tax rate was 33.6% and 16.8% for the third quarter of fiscal 2015 and 2014, respectively, and 32.8% and 30.4% for the first nine months of fiscal 2015 and 2014, respectively. The effective tax rates for the third quarter and first nine months of fiscal 2015 and fiscal 2014 were impacted by such items as the domestic production deduction, state income taxes and losses in foreign jurisdictions for which no benefit is recognized. In addition, changes in tax reserves resulting from the expiration of statutes of limitations reduced the effective tax rate for the first nine months of fiscal 2015 by 2.3% and reduced the effective tax rate for the third quarter and nine months of fiscal 2014 by 12.8% and 3.8%, respectively.
Unrecognized tax benefits were $227 million and $272 million at June 27, 2015, and September 27, 2014, respectively. The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $198 million and $241 million at June 27, 2015, and September 27, 2014, respectively.
We classify interest and penalties on unrecognized tax benefits as income tax expense. At June 27, 2015, and September 27, 2014, before tax benefits, we had $51 million and $54 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
We are subject to income tax assessments for U.S. federal income taxes for fiscal years 2011 through 2014. We are also subject to income tax assessments by major state and foreign jurisdictions for fiscal years 2005 through 2014 and 2002 through 2014, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease up to $22 million primarily due to the expiration of statutes of limitations in various jurisdictions.