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Income Taxes
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our income tax expense, deferred tax assets and liabilities, and unrecognized tax benefits reflect management's best assessment of estimated current and future liabilities. We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense.
Unrecognized Tax Benefits
As of June 30, 2023, the total amount of gross unrecognized tax benefits was $78.0 million, of which $52.2 million, if recognized, would reduce our effective tax rate. As of September 30, 2022, the total amount of gross unrecognized tax benefits was $69.7 million, of which $44.0 million, if recognized, would reduce our effective tax rate. The fiscal year-to-date period ended June 30, 2023 increase was primarily due to current year reserves for transfer pricing and interest accruals. Our liability for unrecognized tax benefits is classified within other non-current liabilities in our unaudited interim condensed consolidated balance sheets.
Effective Tax Rate
Each period, the combination of multiple different factors can impact our effective tax rate. These factors include both recurring items such as tax rates and the relative amount of income earned in foreign jurisdictions, as well as discrete items that may occur in, but are not necessarily consistent between periods.
Our effective tax rate in the third quarter of fiscal 2023 was 30.9% or a tax expense of $7.4 million and our effective tax rate in the third quarter of fiscal 2022 was 19.8% or a tax expense of $9.8 million. The increase in our effective tax rate was primarily due to the non-recurring discrete benefits from the settlement of Federal tax audit and prior year tax return true-ups in fiscal 2022.
Our effective tax rate in the fiscal year-to-date period ended June 30, 2023 was 20.4% or a tax expense of $49.3 million and our effective tax rate in the fiscal year-to-date period ended July 1, 2022 was 15.3% or a tax expense of $28.2 million. The increase in our effective tax rate was primarily due to the non-recurring discrete benefits from the settlement of a federal tax audit and prior year tax return true-ups in fiscal 2022 and lower tax benefits related to settlement of stock-based awards in fiscal 2023.
Compared to the Federal statutory rate of 21%, our effective tax rate for the third quarter of fiscal 2023 was higher primarily due to the mix of earnings favoring jurisdictions with higher tax rates. The effective tax rate for the fiscal year-to-date period ended June 30, 2023 was lower primarily due to tax benefits related to settlement of stock-based awards.
On July 21, 2023, the IRS announced in a notice that taxpayers can temporarily apply the regulations in effect prior to 2022 related to U.S. federal foreign tax credits. This relief applies to foreign taxes paid or accrued in our fiscal 2023. We are currently evaluating the effect on our consolidated financial statements and expect to recognize any changes in our financial results for the period ending September 29, 2023.