Leases

12 Months Ended

Jun. 30, 2022

5. Leases

The following table summarizes the components of lease cost:



(in millions)	2022		2021		2020
Operating lease cost	$	117	$	119	$	134

Finance lease cost	23		16		13



Variable lease cost	13		24		17

Total lease cost	$	153	$	159	$	164

Variable lease cost primarily includes payments for property taxes, maintenance and insurance.

The following table summarizes supplemental balance sheet and other information related to leases at June 30:


(in millions)	2022			2021
Operating Leases
Operating lease right-of-use assets	$	457		$	460

Current portion of operating lease liabilities	102			105
Long-term operating lease liabilities	388			374
Total operating lease liabilities	490			479

Finance Leases
Finance lease right-of-use assets	68			63

Current portion of finance lease liabilities	23			19
Long-term finance lease liabilities	49			45
Total finance lease liabilities	$	72		$	64

Weighted-average remaining lease term (years)
Operating leases	6.0 years			6.5 years
Finance leases	4.1 years			4.2 years

Weighted-average discount rate
Operating leases	3.0		%	2.9		%
Finance leases	1.8		%	1.5		%

Operating leases are included in other assets, other accrued liabilities, and deferred income taxes and other liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, net, current portion of long-term obligations and other short-term borrowings, and long-term obligations, less current portion in our consolidated balance sheets.

The following tables summarizes supplemental cash flow information related to leases:



(in millions)	2022		2021		2020
Cash paid for lease liabilities:
Operating cash flows paid for operating leases	$	123	$	115	$	125

Financing cash flows paid for finance leases	21		15		7
Non-cash right-of-use assets obtained in exchange for lease obligations:
New operating leases	101		138		150
New finance leases	28		45		40
Amended lease standard adoption impact as of July 1, 2019 (1)	—		—		400

(1)Includes the effect of $22 million from reclassifying deferred rent as an offset to the lease right-of-use asset in accordance with the transition guidance.

Future lease payments under non-cancellable leases as of June 30, 2022 were as follows:


(in millions)	Operating Leases		Finance Leases		Total

2023	$	114	$	24	$	138
2024	98		19		117
2025	88		14		102
2026	71		7		78
2027	54		5		59
Thereafter	114		6		120
Total future lease payments	539		75		614

Less: imputed interest	49		3		52
Total lease liabilities	$	490	$	72	$	562