Leases

12 Months Ended

Jun. 30, 2025

6. Leases

The following table summarizes the components of lease cost:



(in millions)	2025		2024		2023
Operating lease cost	$	157	$	120	$	112

Finance lease cost	51		39		31



Variable lease cost	43		31		21

Total lease cost	$	251	$	190	$	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)	20251			2024
Operating Leases
Operating lease right-of-use assets	$	758		$	475

Current portion of operating lease liabilities	164			117
Long-term operating lease liabilities	654			400
Total operating lease liabilities	818			517

Finance Leases
Finance lease right-of-use assets	192			102

Current portion of finance lease liabilities	44			33
Long-term finance lease liabilities	157			75
Total finance lease liabilities	$	201		$	108

Weighted-average remaining lease term (years)
Operating leases	5.9 years			5.5 years
Finance leases	6.3 years			4.1 years

Weighted-average discount rate
Operating leases	3.9		%	4.1		%
Finance leases	4.6		%	4.4		%

1 Increases in the right-of-use asset and liability balances are primarily due to acquisitions.

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)	2025		2024		2023
Cash paid for lease liabilities:
Operating cash flows paid for operating leases	$	167	$	124	$	119

Financing cash flows paid for finance leases	53		36		31
Non-cash right-of-use assets obtained in exchange for lease obligations:
New operating leases	130		143		75
New finance leases	107		55		42

Future lease payments under non-cancellable leases as of June 30, 2025 were as follows:


(in millions)	Operating Leases		Finance Leases		Total

2026	$	197	$	52	$	249
2027	174		45		219
2028	146		35		181
2029	111		25		136
2030	97		19		116
Thereafter	199		57		256
Total future lease payments	924		233		1,157

Less: imputed interest	106		32		138
Total lease liabilities	$	818	$	201	$	1,019