Income Taxes

6 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 12—Income Taxes

For the three and six months ended March 31, 2025, the effective income tax rates were 16% and 17%, respectively, and for the three and six months ended March 31, 2024, the effective income tax rates were 15% and 17%, 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 six months ended March 31, 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 three and six months ended March 31, 2024, a $184 million tax benefit as a result of the conclusion of an audit.

For the three and six months ended March 31, 2025, the Company’s gross unrecognized tax benefits increased $246 million and $339 million, respectively, and the Company’s net unrecognized tax benefits increased $88 million and $100 million, respectively. The change in unrecognized tax benefits is related to various tax positions across several jurisdictions, including an increase in gross timing differences.

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.