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Income Taxes
6 Months Ended
Mar. 28, 2015
Income Taxes [Abstract]  
Income Taxes

13. Income Taxes

 

As of March 28, 2015, the Company’s liability for unrecognized tax benefits was $4.3 million, of which $2.3 million would favorably affect the Company’s effective tax rate, if recognized. As of September 27, 2014, the Company’s liability for unrecognized tax benefits was $6.0 million, of which $3.8 million would favorably affect the Company’s effective tax rate, if recognized. The change in unrecognized benefits that would affect the effective tax rate is primarily a result of the favorable resolution of audit matters in connection with the Internal Revenue Service (“IRS”) examination of the Company’s federal income tax returns for the fiscal tax years ending October 1, 2011 and September 29, 2012. The IRS audit concluded during the three months ended March 28, 2015. As of March 28, 2015, the Company does not expect significant changes in the amount of unrecognized tax benefits during the next twelve months.

 

On December 19, 2014, the Tax Increase Prevention Act of 2014 was signed into law, which reinstated the United States Research and Development (R&D) tax credit retroactively from January 1, 2014 and extends it through December 31, 2014. As a result of this legislation, the Company recognized a tax benefit of approximately $2.1 million during the three months ended December 27, 2014.