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LEASES

12 Months Ended

Jun. 30, 2026

The Company leases various property, plant and equipment, including office, warehousing, manufacturing and research and development facilities and equipment. These leases have remaining lease terms of up to 31 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to the Company’s leases as of June 30 was as follows:


	Balance sheet classification	2026		2025
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	401	$	333
Current lease liabilities	Current operating lease liabilities	$	86	$	87
Non-current lease liabilities	Long-term operating lease liabilities	366		305
Total operating lease liabilities		$	452	$	392

Finance leases
Right-of-use assets	Other assets	$	73	$	35
Current lease liabilities	Accounts payable and accrued liabilities	$	16	$	15
Non-current lease liabilities	Other liabilities	62		21
Total finance lease liabilities		$	78	$	36

Components of lease cost were as follows for the fiscal years ended June 30:


	2026		2025		2024
Operating lease cost	$	98	$	99	$	97
Finance lease cost:
Amortization of right-of-use assets	$	17	$	15	$	11
Interest on lease liabilities	2		2		1
Total finance lease cost	$	19	$	17	$	12
Variable lease cost	$	29	$	56	$	94
Short term lease cost	$	6	$	5	$	3

Supplemental cash flow information and noncash activity related to the Company’s leases were as follows during fiscal years ended June 30:


	2026		2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	102	$	97	$	97
Operating cash flows from finance leases	1		2		1
Financing cash flows from finance leases	18		15		11
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	148	$	56	$	113
Finance leases	56		17		17

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:


	2026		2025
Weighted-average remaining lease term:
Operating leases	7 years		5 years
Finance leases	9 years		3 years
Weighted-average discount rate:
Operating leases	4.7	%	4.1	%
Finance leases	5.1	%	4.9	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2026 were as follows:


Year	Operating leases		Finance leases
2027	$	106	$	19
2028	92		14
2029	78		13
2030	64		10
2031	43		4
Thereafter	167		38
Total lease payments	$	550	$	98
Less: Imputed interest	98		20
Total lease liabilities	$	452	$	78

Operating and finance lease payments presented in the table above exclude $11 and $1, respectively, of minimum lease payments signed but not yet commenced as of June 30, 2026.

On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The Company received proceeds of $19, net of selling costs. The asset had a carrying value of $3 and the transaction resulted in a $16 gain, which was recognized in Other (income) expense, net in the Health and Wellness segment. The leaseback is accounted for as an operating lease. The term of the lease is 8 years with options to extend the lease for two 5 year periods.

LEASES