Income Taxes |
9 Months Ended |
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Jun. 27, 2015 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
Our effective income tax provision for the nine months ended June 27, 2015, was 40.4%, compared to an effective tax benefit of 92.6% for the same period in the prior year and an effective tax benefit of 87.1% for the fiscal year ended September 27, 2014. During the second quarter of fiscal year 2015, we recognized a $5.6 million pre-tax gain, including associated indirect expenses, on the sale of The Game assets. We accounted for this event as a discrete item for tax provision purposes, recording tax expense on the pre-tax gain, including associated indirect expenses, at the full applicable statutory rate. See Note D—Sale of The Game, for further information on this transaction. In addition, during the third quarter of fiscal year 2015, employee stock options were exercised and depleted our excess tax benefit pool, which resulted in $0.3 million in income tax expense recorded in the quarter. Excluding the effect of these discrete items, the effective tax provision on normal operations for the nine months ended June 27, 2015, was 4.2%.
Based on our current projected pre-tax income and the anticipated amount of U.S. taxable income compared to profits in the offshore taxable and tax-free jurisdictions in which we operate, our estimated annual income tax rate for the fiscal year ending October 3, 2015, is expected to be approximately 20%, including the effect of the aforementioned discrete items. However, changes in the mix of U.S. taxable income compared to profits in tax-free jurisdictions can have a significant impact on our overall effective tax rate.
We file income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. Tax years 2011 through 2013, according to statute and with few exceptions, remain open to examination by various state, local and foreign jurisdictions. Tax years 2012 through 2013 remain open to examination by the Internal Revenue Service.
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