Income Taxes |
9 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Effective Tax Rate The effective income tax rate was 23.3% and 24.5% during the quarters ended June 30, 2025 and 2024, respectively, and 17.2% and 19.9% during the nine months ended June 30, 2025 and 2024, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. The Organization for Economic Co-operation and Development published Pillar Two Model Rules (“Pillar Two”) for a global 15% minimum tax rate that are in the process of being adopted by a number of jurisdictions in which we operate. We continue to monitor these legislative developments and do not expect Pillar Two to have a material impact on our fiscal 2025 consolidated financial statements. The One Big Beautiful Bill Act (“OBBBA”) of 2025 was signed into law on July 4, 2025. We continue to monitor the impact of the tax provisions of the OBBBA, most of which are not effective for FICO until fiscal 2026 and after. We do not expect the OBBBA to have a material impact on our fiscal 2025 consolidated financial statements. The total unrecognized tax benefit for uncertain tax positions was estimated to be $23.2 million and $19.9 million at June 30, 2025 and September 30, 2024, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We accrued interest of $2.9 million and $1.7 million related to unrecognized tax benefits as of June 30, 2025 and September 30, 2024, respectively.
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