Leases

12 Months Ended

Jun. 30, 2024

LEASES

Lessee Arrangements

The following amounts were recorded in the Company’s Balance Sheets relating to its operating leases and other supplemental information:


	As of June 30,
	2024			2023
	(in millions)
ROU assets	$	904		$	947
Lease liabilities
Current lease liabilities	$	76		$	72
Non-current lease liabilities	879			925
Total lease liabilities	$	955		$	997
Other supplemental information
Weighted average remaining lease term	16 years			17 years
Weighted average discount rate	5		%	5		%

In December 2022, the Company renewed the operating lease for its corporate headquarters at 1211 Avenue of the Americas in New York through fiscal 2042. In connection with this extension, the Company recorded additional operating lease assets and liabilities of approximately $540 million as of June 30, 2023.

The following table presents information about the Company’s lease costs and supplemental cash flows information for leases:


	For the years ended June 30,
	2024		2023		2022
	(in millions)
Lease costs
Total lease costs(a)	$	147	$	145	$	128
Supplemental cash flows information
Operating cash flows from operating leases	$	126	$	119	$	116
ROU assets obtained in exchange for operating lease liabilities	$	36	$	568	$	137


(a)			Total lease costs are net of sublease income of approximately $15 million in each period.

The following table presents the lease payments relating to the Company’s operating leases:


	As of June 30, 2024
	(in millions)
Fiscal Year
2025	$	121
2026	72
2027	69
2028	100
2029	93
Thereafter	1,015
Total lease payments	1,470
Less: imputed interest	(515)
Present value of operating lease liabilities	$	955

Lessor Arrangements

The Company’s lessor arrangements primarily relate to its owned production and office facilities at the FOX Studio Lot, which is located in Los Angeles, California. The Company leases production and office space on the FOX Studio Lot to Disney for an initial term of seven years, subject to two five-year renewal options exercisable by Disney. As a result, the FOX Studio Lot will predominantly be utilized by Disney until 2026. The Company will receive approximately $50 million annually in lease payments over the remaining lease term.

The Company recorded total lease income for fiscal 2024, 2023 and 2022 of approximately $55 million in each period, which is included in Revenues in the Statements of Operations. The Company recognizes lease payments for operating leases as revenue on a straight-line basis over the lease term and variable lease payments as revenue in the period incurred.