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Income Taxes
3 Months Ended
Dec. 27, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The effective tax rate was 28.8% and 34.3% for the first quarter of fiscal 2015 and 2014, respectively. The effective tax rates for the first quarter 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 quarter of fiscal 2015 by 6.5%.
Unrecognized tax benefits were $239 million and $272 million at December 27, 2014, and September 27, 2014, respectively. The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $209 million and $241 million at December 27, 2014, and September 27, 2014, respectively.
We classify interest and penalties on unrecognized tax benefits as income tax expense. At December 27, 2014, and September 27, 2014, before tax benefits, we had $52 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 2013. We are also subject to income tax assessments by major state and foreign jurisdictions for fiscal years 2005 through 2013 and 2002 through 2013, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease up to $5 million primarily due to expiration of statutes of limitations in various jurisdictions.