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LEASES | 9 Months Ended
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Mar. 31, 2021
Leases [Abstract] |
LEASES | NOTE 13 — LEASES We have operating and finance leases for datacenters, corporate offices, research and development facilities, Microsoft Experience Centers, and certain equipment. Our leases have remaining lease terms of 1 year to 15 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 March 31, |  |  |  | Nine Months Ended March 31, |
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020 |
Operating lease cost |  | $ | 553 |  |  | $ | 522 |  |  | $ | 1,554 |  |  | $ | 1,465 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 211 |  |  | $ | 135 |  |  | $ | 666 |  |  | $ | 423 |
Interest on lease liabilities |  |  | 100 |  |  |  | 87 |  |  |  | 286 |  |  |  | 249 |
Total finance lease cost |  | $ | 311 |  |  | $ | 222 |  |  | $ | 952 |  |  | $ | 672 |
Supplemental cash flow information related to leases was as follows:
(In millions) |  | Three Months Ended March 31, |  |  |  | Nine Months Ended March 31, |
|  |  | 2021 |  |  |  | 2020 |  |  |  | 2021 |  |  |  | 2020 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 533 |  |  | $ | 505 |  |  | $ | 1,506 |  |  | $ | 1,437 |
Operating cash flows from finance leases |  |  | 100 |  |  |  | 87 |  |  |  | 286 |  |  |  | 249 |
Financing cash flows from finance leases |  |  | 168 |  |  |  | 110 |  |  |  | 457 |  |  |  | 293 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases |  |  | 1,106 |  |  |  | 680 |  |  |  | 3,362 |  |  |  | 2,611 |
Finance leases |  |  | 836 |  |  |  | 259 |  |  |  | 2,664 |  |  |  | 2,611 |
Supplemental balance sheet information related to leases was as follows:
(In millions, except lease term and discount rate) |  |  |  |  |  |
|  | March 31, 2021 |  |  | June 30, 2020 |
Operating Leases |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 10,673 |  |  | $ | 8,753 |
Other current liabilities |  | $ | 1,876 |  |  | $ | 1,616 |
Operating lease liabilities |  |  | 9,272 |  |  |  | 7,671 |
Total operating lease liabilities |  | $ | 11,148 |  |  | $ | 9,287 |
Finance Leases |  |  |  |  |  |  |  |
Property and equipment, at cost |  | $ | 13,412 |  |  | $ | 10,371 |
Accumulated depreciation |  |  | (2,051 | ) |  |  | (1,385 | )
Property and equipment, net |  | $ | 11,361 |  |  | $ | 8,986 |
Other current liabilities |  | $ | 753 |  |  | $ | 540 |
Other long-term liabilities |  |  | 11,301 |  |  |  | 8,956 |
Total finance lease liabilities |  | $ | 12,054 |  |  | $ | 9,496 |
Weighted Average Remaining Lease Term |  |  |  |  |  |  |  |
Operating leases |  |  | 6 years |  |  |  | 8 years |
Finance leases |  |  | 12 years |  |  |  | 13 years |
Weighted Average Discount Rate |  |  |  |  |  |  |  |
Operating leases |  |  | 2.2% |  |  |  | 2.7% |
Finance leases |  |  | 3.4% |  |  |  | 3.9% |
The following table outlines maturities of our lease liabilities as of March 31, 2021:
(In millions) |  |  |  |  |  |
Year Ending June 30, |  | Operating Leases |  |  | Finance Leases |
2021 (excluding the nine months ended March 31, 2021) |  | $ | 603 |  |  | $ | 278 |
2022 |  |  | 1,981 |  |  |  | 1,128 |
2023 |  |  | 1,803 |  |  |  | 1,140 |
2024 |  |  | 1,607 |  |  |  | 1,156 |
2025 |  |  | 1,320 |  |  |  | 1,481 |
Thereafter |  |  | 4,716 |  |  |  | 9,510 |
Total lease payments |  |  | 12,030 |  |  |  | 14,693 |
Less imputed interest |  |  | (882 | ) |  |  | (2,639 | )
Total |  | $ | 11,148 |  |  | $ | 12,054 |
As of March 31, 2021, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $5.3 billion and $6.8 billion, respectively. These operating and finance leases will commence between fiscal year 2021 and fiscal year 2026 with lease terms of 1 year to 15 years.

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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 + Details
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