Income Taxes |
9 Months Ended |
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Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 12—Income Taxes For the three and nine months ended June 30, 2025, the effective income tax rate was 17%, and for the three and nine months ended June 30, 2024, the effective income tax rates were 19% and 18%, respectively. The effective income tax rates differ due to a change in the geographic mix of earnings as well as the following: •For the three and nine months ended June 30, 2025, a $60 million net tax benefit due to the reassessment of uncertain tax positions as a result of new information obtained during a tax examination; •For the nine months ended June 30, 2025, a $222 million tax benefit as a result of a tax position taken on certain expenses, partially offset by a $71 million tax expense related to the resolution of a tax matter; and •For the nine months ended June 30, 2024, a $184 million tax benefit as a result of the conclusion of an audit. For the three and nine months ended June 30, 2025, the Company’s gross unrecognized tax benefits decreased $2.4 billion and $2.1 billion, respectively, and the Company’s net unrecognized tax benefits decreased $66 million and increased $34 million, respectively. The change in unrecognized tax benefits is related to various tax positions across several jurisdictions and reflects the reassessment mentioned above, including a decrease in gross timing differences. For the three and nine months ended June 30, 2025, accrued interest related to uncertain tax positions decreased $168 million and $142 million, respectively. For the three and nine months ended June 30, 2024, accrued interest related to uncertain tax positions increased $18 million and decreased $33 million, respectively. The Internal Revenue Service concluded fieldwork related to its examination of the Company’s U.S. federal income tax returns for fiscal 2016 through 2018. For fiscal 2008 through 2018, an unresolved issue related to certain income tax deductions remains. The Company’s California income tax examination for fiscal 2012 through 2015 concluded and the Company filed an administrative appeal related to refund claims for those years. The Company’s California income tax returns for fiscal 2016 through 2021 are currently under examination. Except for the refund claims, the California statute of limitations has expired for fiscal years prior to 2016. The Company’s tax filings are subject to examination by U.S. federal, state and foreign taxing authorities. The timing and outcome of the final resolutions of the various ongoing income tax examinations and refund claims are uncertain. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next 12 months.
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