Leases (Tables)

3 Months Ended

Jun. 30, 2023

Leases [Abstract]

Components of Lease Expense and Supplemental Cash Flow Information Related to Leases

The components of operating lease expense were as follows:

(in millions)	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022
Operating lease cost	$	90	$	106
Short-term lease cost	7		8
Variable lease cost	15		22
Sublease income	(4)		(4)
Total operating costs	$	108	$	132

The components of finance lease expense were as follows:

(in millions)	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022
Amortization of right-of-use assets	$	42	$	61
Interest on lease liabilities	4		5
Total finance lease cost	$	46	$	66

The following table provides supplemental cash flow information related to the Company’s finance leases:

(in millions)	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022
Interest paid for finance lease liabilities – Operating cash flows	$	4	$	5
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	61		96
Total cash paid in the measurement of finance lease obligations	$	65	$	101
Capital expenditures through finance lease obligations(1)	$	17	$	26

(1) See Note 17 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

Supplemental Balance Sheet Information Related to Leases

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

(in millions)	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$	90	$	106
ROU assets obtained in exchange for operating lease liabilities(1)	$	23	$	55

(1) Net of $230 million and $338 million in lease modifications and terminations for the three months ended June 30, 2023 and June 30, 2022, respectively. See Note 17 – “Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

		As of
(in millions)	Balance Sheet Line Item	June 30, 2023		March 31, 2023
ROU operating lease assets	Operating right-of-use assets, net	$	849	$	909
Operating lease liabilities	Current operating lease liabilities	$	303	$	317
Operating lease liabilities	Non-current operating lease liabilities	598		648
Total operating lease liabilities		$	901	$	965

The weighted-average operating lease term was 3.9 years and 3.9 years as of June 30, 2023 and March 31, 2023, respectively. The weighted-average operating lease discount rate was 4.1% and 3.9% as of June 30, 2023 and March 31, 2023, respectively.

The following table presents finance lease balances:

		As of
(in millions)	Balance Sheet Line Item	June 30, 2023		March 31, 2023
ROU finance lease assets	Property and Equipment, net	$	370	$	424
Finance lease	Short-term debt and current maturities of long-term debt	$	208	$	215
Finance lease	Long-term debt, net of current maturities	267		287
Total finance lease liabilities(1)		$	475	$	502

(1) See Note 10 – “Debt” for further information on finance lease liabilities.

Maturities of Operating Lease Liabilities

The following maturity analysis presents expected undiscounted cash payments for operating leases as of June 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	255	$	276	$	185	$	100	$	76	$	93	$	985
Less: imputed interest													(84)
Total operating lease liabilities													$	901

Maturities of Finance Lease Liabilities

The following maturity analysis presents expected undiscounted cash payments for finance leases as of June 30, 2023:

	Fiscal Year
(in millions)	Remainder of 2024		2025		2026		2027		2028		Thereafter		Total
Finance lease payments	$	164	$	161	$	99	$	53	$	14	$	—	$	491
Less: imputed interest													(16)
Total finance lease liabilities													$	475