LEASES

6 Months Ended

Dec. 31, 2018

Leases [Abstract]

LEASES

NOTE 13 — LEASES

We have operating and finance leases for datacenters, corporate offices, research and development facilities, retail stores, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows:

(In millions)	Three Months Ended December 31,				Six Months Ended December 31,
		2018		2017		2018		2017
Operating lease cost	$	413	$	399	$	823	$	787
Finance lease cost:
Amortization of right-of-use assets	$	84	$	57	$	162	$	105
Interest on lease liabilities		59		44		114		74
Total finance lease cost	$	143	$	101	$	276	$	179

Supplemental cash flow information related to leases was as follows:

(In millions)	Three Months Ended December 31,				Six Months Ended December 31,
		2018		2017		2018		2017
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	407	$	375	$	804	$	744
Operating cash flows from finance leases		59		45		114		75
Financing cash flows from finance leases		54		31		101		56
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		472		308		968		699
Finance leases		645		650		1,064		1,378

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)
	December 31, 2018			June 30, 2018
Operating Leases
Operating lease right-of-use assets	$	6,806		$	6,686
Other current liabilities	$	1,421		$	1,399
Operating lease liabilities		5,683			5,568
Total operating lease liabilities	$	7,104		$	6,967
Finance Leases
Property and equipment, at cost	$	5,554		$	4,543
Accumulated depreciation		(566	)		(404	)
Property and equipment, net	$	4,988		$	4,139
Other current liabilities	$	245		$	176
Other long-term liabilities		4,965			4,125
Total finance lease liabilities	$	5,210		$	4,301
Weighted Average Remaining Lease Term
Operating leases		7 years			7 years
Finance leases		13 years			13 years
Weighted Average Discount Rate
Operating leases		2.9%			2.7%
Finance leases		4.9%			5.2%

Maturities of lease liabilities were as follows:

(In millions)
Year Ending June 30,	Operating Leases			Finance Leases
2019 (excluding the six months ended December 31, 2018)	$	799		$	241
2020		1,503			479
2021		1,244			487
2022		1,048			495
2023		861			498
Thereafter		2,439			4,934
Total lease payments		7,894			7,134
Less imputed interest		(790	)		(1,924	)
Total	$	7,104		$	5,210

As of December 31, 2018, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $2.7 billion and $6.4 billion, respectively. These operating and finance leases will commence between fiscal year 2019 and fiscal year 2022 with lease terms of 1 year to 16 years.