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LEASES | 3 Months Ended
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Sep. 30, 2022
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 less than 1 year to 19 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 September 30, |  |  | 2022 |  |  |  | 2021 |
Operating lease cost |  | $ | 662 |  |  | $ | 588 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 189 |  |  | $ | 226 |
Interest on lease liabilities |  |  | 113 |  |  |  | 104 |
Total finance lease cost |  | $ | 302 |  |  | $ | 330 |
Supplemental cash flow information related to leases was as follows:
(In millions) |  |  |  |  |  |  |  |
Three Months Ended September 30, |  |  | 2022 |  |  |  | 2021 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 654 |  |  | $ | 566 |
Operating cash flows from finance leases |  |  | 113 |  |  |  | 104 |
Financing cash flows from finance leases |  |  | 256 |  |  |  | 200 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Operating leases |  |  | 1,189 |  |  |  | 1,171 |
Finance leases |  |  | 611 |  |  |  | 1,389 |
Supplemental balance sheet information related to leases was as follows:
(In millions, except lease term and discount rate) |  |  |  |  |  |
|  | September 30, 2022 |  |  | June 30, 2022 |
Operating Leases |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 13,347 |  |  | $ | 13,148 |
Other current liabilities |  | $ | 2,224 |  |  | $ | 2,228 |
Operating lease liabilities |  |  | 11,660 |  |  |  | 11,489 |
Total operating lease liabilities |  | $ | 13,884 |  |  | $ | 13,717 |
Finance Leases |  |  |  |  |  |  |  |
Property and equipment, at cost |  | $ | 17,322 |  |  | $ | 17,388 |
Accumulated depreciation |  |  | (3,475 | ) |  |  | (3,285 | )
Property and equipment, net |  | $ | 13,847 |  |  | $ | 14,103 |
Other current liabilities |  | $ | 1,055 |  |  | $ | 1,060 |
Other long-term liabilities |  |  | 13,575 |  |  |  | 13,842 |
Total finance lease liabilities |  | $ | 14,630 |  |  | $ | 14,902 |
Weighted Average Remaining Lease Term |  |  |  |  |  |  |  |
Operating leases |  |  | 8 years |  |  |  | 8 years |
Finance leases |  |  | 11 years |  |  |  | 12 years |
Weighted Average Discount Rate |  |  |  |  |  |  |  |
Operating leases |  |  | 2.4% |  |  |  | 2.1% |
Finance leases |  |  | 3.2% |  |  |  | 3.1% |
The following table outlines maturities of our lease liabilities as of September 30, 2022:
(In millions) |  |  |  |  |  |
Year Ending June 30, |  | Operating Leases |  |  | Finance Leases |
2023 (excluding the three months ended September 30, 2022) |  | $ | 1,913 |  |  | $ | 1,107 |
2024 |  |  | 2,327 |  |  |  | 1,480 |
2025 |  |  | 2,060 |  |  |  | 1,796 |
2026 |  |  | 1,706 |  |  |  | 1,477 |
2027 |  |  | 1,409 |  |  |  | 1,482 |
Thereafter |  |  | 5,960 |  |  |  | 10,028 |
Total lease payments |  |  | 15,375 |  |  |  | 17,370 |
Less imputed interest |  |  | (1,491 | ) |  |  | (2,740 | )
Total |  | $ | 13,884 |  |  | $ | 14,630 |
As of September 30, 2022, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $6.5 billion and $10.5 billion, respectively. These operating and finance leases will commence between fiscal year 2023 and fiscal year 2028 with lease terms of less than 1 year to 18 years.

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- Definition The entire disclosure for operating and finance leases of lessee. Includes, but is not limited to, description of operating and finance leases and maturity analysis of operating and finance lease liabilities. + References No definition available. + Details
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- References No definition available. + Details
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