Income Taxes

3 Months Ended

Dec. 29, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rates for the first quarters of fiscal 2025 and 2024 were 94.9% and 26.1%, respectively. In the first quarter of fiscal 2025, we recognized a $115 million non-recurring charge related to legal contingencies as described in Note 17, "Commitments and Contingencies". We also determined that $31.3 million of this charge is not tax deductible, which increased our effective tax rate this quarter. Excluding the impact of the legal contingency charge, our effective tax rate was 27.2% in the first quarter of fiscal 2025.

At December 29, 2024 and September 29, 2024, the liability for income taxes associated with uncertain tax positions was $51.1 million and $50.1 million, respectively. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of our unrecognized tax positions may not significantly decrease within the next 12 months. These liabilities represent our current estimates of the additional tax liabilities that we may be assessed when the related audits are concluded. If these audits are resolved in a manner more unfavorable than our current expectations, our additional tax liabilities could be materially higher than the amounts currently recorded resulting in additional tax expense.