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Income Taxes
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3 Months Ended |
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Dec. 29, 2013
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| Notes to Financial Statements [Abstract] | |
| Note 4 - Income Taxes |
Note 4 — Income Taxes
The Company estimates its annual effective income tax rate for continuing operations to be approximately 18% for fiscal 2014, which is higher than the 16% effective income tax rate for fiscal 2013. The estimated annual effective tax rate for fiscal 2014 reflects the United States federal research and development tax credit expected to be generated through December 31, 2013, the date on which the credit expired. The annual effective tax rate for fiscal 2013 included a tax benefit of $64 million related to fiscal 2012 due to the retroactive extension of the United States federal research and development tax credit in fiscal 2013. Tax benefits from foreign earnings taxed at rates that are less than the United States federal tax rate are expected to be approximately 17% in fiscal 2014 and were 17% in fiscal 2013.
The Company believes that it is reasonably possible that several tax audits will be resolved within the next 12 months, thereby decreasing some or all of its $233 million unrecognized tax benefit liability at December 29, 2013. Such decrease will result in a reduction of the effective tax rate to the extent tax benefits are sustained or in the settlement of the liability with the tax authorities to the extent not sustained.
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