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LEASES

6 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

NOTE 12 — LEASES

We have operating and finance leases for datacenters, corporate offices, research and development facilities, retail stores, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows:

(In millions)		Three Months Ended December 31,								Six Months Ended December 31,
			2019				2018				2019				2018
Operating lease cost		$	478			$	413			$	943			$	823
Finance lease cost:
Amortization of right-of-use assets		$	163			$	84			$	288			$	162
Interest on lease liabilities			84				59				162				114
Total finance lease cost		$	247			$	143			$	450			$	276

Supplemental cash flow information related to leases was as follows:

(In millions)		Three Months Ended December 31,								Six Months Ended December 31,
			2019				2018				2019				2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	479			$	407			$	932			$	804
Operating cash flows from finance leases			84				59				162				114
Financing cash flows from finance leases			104				54				183				101
Right-of-use assets obtained in exchange for lease obligations:
Operating leases			948				472				1,931				968
Finance leases			863				645				2,352				1,064

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)
		December 31, 2019				June 30, 2019
Operating Leases
Operating lease right-of-use assets		$	8,439			$	7,379
Other current liabilities		$	1,616			$	1,515
Operating lease liabilities			7,172				6,188
Total operating lease liabilities		$	8,788			$	7,703
Finance Leases
Property and equipment, at cost		$	9,403			$	7,041
Accumulated depreciation			(1,062	)			(774	)
Property and equipment, net		$	8,341			$	6,267
Other current liabilities		$	464			$	317
Other long-term liabilities			8,287				6,257
Total finance lease liabilities		$	8,751			$	6,574
Weighted Average Remaining Lease Term
Operating leases			7 years				7 years
Finance leases			13 years				13 years
Weighted Average Discount Rate
Operating leases			2.8%				3.0%
Finance leases			4.1%				4.6%

Maturities of lease liabilities were as follows:

(In millions)
Year Ending June 30,		Operating Leases				Finance Leases
2020 (excluding the six months ended December 31, 2019)		$	966			$	393
2021			1,705				804
2022			1,507				819
2023			1,306				827
2024			1,084				838
Thereafter			3,394				7,619
Total lease payments			9,962				11,300
Less imputed interest			(1,174	)			(2,549	)
Total		$	8,788			$	8,751

As of December 31, 2019, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $2.4 billion and $4.2 billion, respectively. These operating and finance leases will commence between fiscal year 2020 and fiscal year 2022 with lease terms of 1 year to 16 years.

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- References

No definition available.

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- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-URI http://asc.fasb.org/topic&trid=2208923

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