Leases

12 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

NOTE 10. LEASES

Summary of leases

The Company's operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and satellite transponders. The Company’s finance leases consist of certain satellite transponders. The Company’s operating leases generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised.

Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.

Other required lease disclosures

The total lease cost for operating and finance leases included in the Statements of Operations was as follows:

		For the fiscal years ended June 30,
		2023		2022		2021
	Income Statement Location	(in millions)
Operating lease costs	Selling, general and administrative	$	121	$	125	$	135
Operating lease costs	Operating expenses	32		36		37
Finance lease costs	Depreciation and amortization	25		27		27
Finance lease costs	Interest expense, net	2		3		4
Short term lease costs	Operating expenses	16		12		15
Variable lease costs	Selling, general and administrative	24		24		28
Total lease costs		$	220	$	227	$	246

Additional information related to the Company’s operating and finance leases under ASU 2016-02:

	As of June 30, 2023				As of June 30, 2022
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted-average remaining lease term	13.7 years		1.8 years		11.0 years		2.8 years
Weighted-average incremental borrowing rate	5.11	%	3.64	%	3.56	%	3.64	%

	For the fiscal years ended June 30,
	2023		2022		2021
	(in millions)
Cash paid - Operating lease liabilities	$	172	$	182	$	184
Cash paid - Finance lease liabilities - principal	24		27		30
Cash paid - Finance lease liabilities - interest	2		3		4
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	248		72		25

Future minimum lease payments as of June 30, 2023 are as follows:

	As of June 30, 2023
	Operating Leases		Finance Leases
	(in millions)
Fiscal 2024	$	169	$	28
Fiscal 2025	158		15
Fiscal 2026	141		—
Fiscal 2027	137		—
Fiscal 2028	100		—
Thereafter	1,084		—
Total future minimum lease payments	$	1,789	$	43
Less: interest	(549)		(1)
Present value of minimum payments	$	1,240	$	42

Leases

NOTE 10. LEASES

Summary of leases

The Company's operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and satellite transponders. The Company’s finance leases consist of certain satellite transponders. The Company’s operating leases generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised.

Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.

Other required lease disclosures

The total lease cost for operating and finance leases included in the Statements of Operations was as follows:

		For the fiscal years ended June 30,
		2023		2022		2021
	Income Statement Location	(in millions)
Operating lease costs	Selling, general and administrative	$	121	$	125	$	135
Operating lease costs	Operating expenses	32		36		37
Finance lease costs	Depreciation and amortization	25		27		27
Finance lease costs	Interest expense, net	2		3		4
Short term lease costs	Operating expenses	16		12		15
Variable lease costs	Selling, general and administrative	24		24		28
Total lease costs		$	220	$	227	$	246

Additional information related to the Company’s operating and finance leases under ASU 2016-02:

	As of June 30, 2023				As of June 30, 2022
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted-average remaining lease term	13.7 years		1.8 years		11.0 years		2.8 years
Weighted-average incremental borrowing rate	5.11	%	3.64	%	3.56	%	3.64	%

	For the fiscal years ended June 30,
	2023		2022		2021
	(in millions)
Cash paid - Operating lease liabilities	$	172	$	182	$	184
Cash paid - Finance lease liabilities - principal	24		27		30
Cash paid - Finance lease liabilities - interest	2		3		4
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	248		72		25

Future minimum lease payments as of June 30, 2023 are as follows:

	As of June 30, 2023
	Operating Leases		Finance Leases
	(in millions)
Fiscal 2024	$	169	$	28
Fiscal 2025	158		15
Fiscal 2026	141		—
Fiscal 2027	137		—
Fiscal 2028	100		—
Thereafter	1,084		—
Total future minimum lease payments	$	1,789	$	43
Less: interest	(549)		(1)
Present value of minimum payments	$	1,240	$	42