Leases

12 Months Ended

Jun. 30, 2024

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.

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,
		2024		2023		2022
	Income Statement Location	(in millions)
Operating lease costs	Selling, general and administrative	$	113	$	121	$	125
Operating lease costs	Operating expenses	31		32		36
Finance lease costs	Depreciation and amortization	24		25		27
Finance lease costs	Interest expense, net	1		2		3
Short term lease costs	Operating expenses	21		16		12
Variable lease costs	Selling, general and administrative	27		24		24
Total lease costs		$	217	$	220	$	227

Additional information related to the Company’s operating and finance leases under ASC 842, Leases:

	As of June 30, 2024				As of June 30, 2023
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted-average remaining lease term	13.1 years		1.1 years		13.7 years		1.8 years
Weighted-average incremental borrowing rate	5.22	%	3.64	%	5.11	%	3.64	%

	For the fiscal years ended June 30,
	2024		2023		2022
	(in millions)
Cash paid:
Operating lease liabilities	$	169	$	172	$	182
Finance lease liabilities - principal	24		24		27
Finance lease liabilities - interest	1		2		3
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	20		248		72

Future minimum lease payments as of June 30, 2024 are as follows:

	As of June 30, 2024
	Operating Leases		Finance Leases
	(in millions)
Fiscal 2025	$	169	$	19
Fiscal 2026	138		4
Fiscal 2027	139		—
Fiscal 2028	103		—
Fiscal 2029	91		—
Thereafter	999		—
Total future minimum lease payments	$	1,639	$	23
Less: interest	(495)		—
Present value of minimum payments	$	1,144	$	23

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.

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,
		2024		2023		2022
	Income Statement Location	(in millions)
Operating lease costs	Selling, general and administrative	$	113	$	121	$	125
Operating lease costs	Operating expenses	31		32		36
Finance lease costs	Depreciation and amortization	24		25		27
Finance lease costs	Interest expense, net	1		2		3
Short term lease costs	Operating expenses	21		16		12
Variable lease costs	Selling, general and administrative	27		24		24
Total lease costs		$	217	$	220	$	227

Additional information related to the Company’s operating and finance leases under ASC 842, Leases:

	As of June 30, 2024				As of June 30, 2023
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted-average remaining lease term	13.1 years		1.1 years		13.7 years		1.8 years
Weighted-average incremental borrowing rate	5.22	%	3.64	%	5.11	%	3.64	%

	For the fiscal years ended June 30,
	2024		2023		2022
	(in millions)
Cash paid:
Operating lease liabilities	$	169	$	172	$	182
Finance lease liabilities - principal	24		24		27
Finance lease liabilities - interest	1		2		3
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	20		248		72

Future minimum lease payments as of June 30, 2024 are as follows:

	As of June 30, 2024
	Operating Leases		Finance Leases
	(in millions)
Fiscal 2025	$	169	$	19
Fiscal 2026	138		4
Fiscal 2027	139		—
Fiscal 2028	103		—
Fiscal 2029	91		—
Thereafter	999		—
Total future minimum lease payments	$	1,639	$	23
Less: interest	(495)		—
Present value of minimum payments	$	1,144	$	23