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Income Taxes
3 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Note 10—Income Taxes
The effective income tax rates were 32% and 28% for the three months ended December 31, 2013 and 2012, respectively. The effective tax rate for the three months ended December 31, 2013 differs from the effective tax rate in the same period in the previous fiscal year mainly due to the absence of a $76 million tax benefit recognized in the first quarter of fiscal 2013, as a result of new guidance issued by the state of California regarding apportionment rules for years prior to fiscal 2012.
During the three months ended December 31, 2013, the Company's gross unrecognized tax benefits increased by $47 million, $45 million of which would favorably impact our effective income tax rate if recognized. The increase in gross unrecognized tax benefits is primarily due to potential audit exposure related to various tax positions across several jurisdictions. During the three months ended December 31, 2013 and 2012, the Company accrued $2 million of interest and no penalties related to uncertain tax positions.