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Income Taxes
3 Months Ended
Dec. 28, 2012
Income Taxes

9. Income Taxes

The Company utilizes the liability method of accounting for income taxes. The federal statutory rate was 34% for all periods. The difference between the Company’s effective tax rate and the federal statutory rate for fiscal 2012 is primarily due to the full valuation allowance offsetting any current period benefit from operating losses and the effect of foreign earnings taxed at rates differing from the federal statutory rate. The difference between the Company’s effective tax rate and the federal statutory rate for fiscal 2013 is primarily due to a change in the Company’s valuation allowance offsetting any current period liability from operating gains and the effect of foreign earnings taxed at rates differing from the federal statutory rate.