LEASES (Tables)

12 Months Ended

Jun. 30, 2023

A summary of total lease costs and other information for the periods relating to the Company’s finance and operating leases is as follows:


	June 30
(In millions)	2023			2022			2021
Total lease cost
Finance lease cost:
Amortization of right-of-use assets	$	11		$	12		$	9
Interest on lease liabilities	—			—			—
Operating lease cost	444			465			470
Short-term lease cost	41			24			19
Variable lease cost	213			332			301
Total	$	709		$	833		$	799
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	463		$	506		$	451
Financing cash flows from finance leases	$	15		$	18		$	12
Right-of-use assets obtained in exchange for new operating lease liabilities	$	273		$	279		$	267
Right-of-use assets obtained in exchange for new finance lease liabilities	$	34		$	10		$	44
Weighted-average remaining lease term – finance leases	14 years			3 years			3 years
Weighted-average remaining lease term – operating leases	9 years			9 years			10 years
Weighted-average discount rate – finance leases	0.4		%	1.0		%	1.1		%
Weighted-average discount rate – operating leases	2.5		%	2.4		%	2.3		%

Operating lease liability, maturity schedule

The total future minimum lease payments, over the remaining lease term, relating to the Company’s operating and finance leases for each of the next five fiscal years and thereafter is as follows:


(In millions)	Operating Leases		Finance Leases
Fiscal 2024	$	399	$	9
Fiscal 2025	362		5
Fiscal 2026	299		3
Fiscal 2027	236		2
Fiscal 2028	185		2
Thereafter	827		21
Total future minimum lease payments	2,308		42
Less imputed interest	(253)		—
Total	$	2,055	$	42

Finance lease liability, maturity schedule

The total future minimum lease payments, over the remaining lease term, relating to the Company’s operating and finance leases for each of the next five fiscal years and thereafter is as follows:


(In millions)	Operating Leases		Finance Leases
Fiscal 2024	$	399	$	9
Fiscal 2025	362		5
Fiscal 2026	299		3
Fiscal 2027	236		2
Fiscal 2028	185		2
Thereafter	827		21
Total future minimum lease payments	2,308		42
Less imputed interest	(253)		—
Total	$	2,055	$	42

Schedule of operating lease and finance lease liabilities included in the consolidated balance sheet

Operating lease and finance lease liabilities included in the consolidated balance sheet are as follows:


	June 30
	2023				2022
(In millions)	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Total current liabilities	$	357	9		$	365	$	13
Total noncurrent liabilities	1,698		33		1,868		10
Total	$	2,055	$	42	$	2,233	$	23

Details of impairment of lease assets by type and by region

A summary of impairment charges is as follows:



(In millions)	Year Ended June 30, 2021
Product Category		Impairment Charge
Skin care		$	1
Makeup		52
Fragrance		14
Hair care		4
Other		—
Total		$	71

Region
The Americas		$	23
Europe, the Middle East & Africa		48
Asia/Pacific		—
Total		$	71