10. Income Taxes

Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management's best assessment of estimated current and future taxes to be paid. We are subject to income taxes in both the United States and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense.

Unrecognized Tax Benefit

As of June 30, 2017, the total amount of gross unrecognized tax benefits was $91.9 million, of which $79.8 million, if recognized, would reduce our effective tax rate. As of September 30, 2016, the total amount of gross unrecognized tax benefits was $75.2 million, of which $62.1 million, if recognized, would reduce our effective tax rate. Our net liability for unrecognized tax benefits is classified within other non-current liabilities in our consolidated balance sheets.

Withholding Taxes

We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities, and for which we receive a partial foreign tax credit in our income tax provision. The foreign current tax includes this withholding tax expense while the appropriate foreign tax credit benefit is included in current federal and foreign taxes. Withholding taxes were as follows (in thousands):



	Fiscal Quarter Ended				Fiscal Year-To-Date Ended
	June 30, 2017		July 1, 2016		June 30, 2017		July 1, 2016
Withholding taxes	$	12,381	$	11,540	$	34,780	$	33,728

Effective Tax Rate

Each period, the combination of 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 such as changes to our uncertain tax positions, that may occur in, but are not necessarily consistent between periods.

Our effective tax rate in the third quarter of fiscal 2017 was 20.9%, compared to 22.0% in the third quarter of fiscal 2016. The decrease in our effective tax rate reflects a benefit from the reduction of tax contingencies and the increased benefits from a relative change in foreign earned income.

Our effective tax rate was 21.6% in the fiscal year-to-date period ended June 30, 2017, compared to 20.9% in the fiscal year-to-date period ended July 1, 2016. The increase in our effective tax rate reflects decreases in discrete benefits from the both R&D credits and settlement of prior years' audit, partially offset by increased benefits from a relative change in foreign earned income.