Leases

12 Months Ended

Jun. 30, 2023

5. Leases

The following table summarizes the components of lease cost:



(in millions)	2023		2022		2021
Operating lease cost	$	112	$	117	$	119

Finance lease cost	31		23		16



Variable lease cost	21		13		24

Total lease cost	$	164	$	153	$	159

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)	2023			2022
Operating Leases
Operating lease right-of-use assets	$	435		$	457

Current portion of operating lease liabilities	100			102
Long-term operating lease liabilities	375			388
Total operating lease liabilities	475			490

Finance Leases
Finance lease right-of-use assets	82			68

Current portion of finance lease liabilities	27			23
Long-term finance lease liabilities	59			49
Total finance lease liabilities	$	86		$	72

Weighted-average remaining lease term (years)
Operating leases	5.7 years			6.0 years
Finance leases	4.1 years			4.1 years

Weighted-average discount rate
Operating leases	3.6		%	3.0		%
Finance leases	3.1		%	1.8		%

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 table summarizes supplemental cash flow information related to leases:



(in millions)	2023		2022		2021
Cash paid for lease liabilities:
Operating cash flows paid for operating leases	$	119	$	123	$	115

Financing cash flows paid for finance leases	31		21		15
Non-cash right-of-use assets obtained in exchange for lease obligations:
New operating leases	75		101		138
New finance leases	42		28		45

Future lease payments under non-cancellable leases as of June 30, 2023 were as follows:


(in millions)	Operating Leases		Finance Leases		Total

2024	$	113	$	28	$	141
2025	103		24		127
2026	86		17		103
2027	68		10		78
2028	55		6		61
Thereafter	97		7		104
Total future lease payments	522		92		614

Less: imputed interest	47		6		53
Total lease liabilities	$	475	$	86	$	561