LEASES

3 Months Ended

Sep. 30, 2019

Leases [Abstract]

LEASES

NOTE 12 — 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 September 30,		2019		2018
Operating lease cost	$	465	$	410
Finance lease cost:
Amortization of right-of-use assets	$	125	$	78
Interest on lease liabilities		78		55
Total finance lease cost	$	203	$	133

Supplemental cash flow information related to leases was as follows:

(In millions)
Three Months Ended September 30,		2019		2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	453	$	397
Operating cash flows from finance leases		78		55
Financing cash flows from finance leases		79		47
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		983		496
Finance leases		1,489		419

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)
	September 30, 2019			June 30, 2019
Operating Leases
Operating lease right-of-use assets	$	7,890		$	7,379
Other current liabilities	$	1,551		$	1,515
Operating lease liabilities		6,659			6,188
Total operating lease liabilities	$	8,210		$	7,703
Finance Leases
Property and equipment, at cost	$	8,423		$	7,041
Accumulated depreciation		(899	)		(774	)
Property and equipment, net	$	7,524		$	6,267
Other current liabilities	$	404		$	317
Other long-term liabilities		7,461			6,257
Total finance lease liabilities	$	7,865		$	6,574
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%			3.0%
Finance leases		4.3%			4.6%

Maturities of lease liabilities were as follows:

(In millions)
Year Ending June 30,	Operating Leases			Finance Leases
2020 (excluding the three months ended September 30, 2019)	$	1,303		$	532
2021		1,536			727
2022		1,335			740
2023		1,139			746
2024		940			756
Thereafter		2,918			6,779
Total lease payments		9,171			10,280
Less imputed interest		(961	)		(2,415	)
Total	$	8,210		$	7,865

As of September 30, 2019, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $2.3 billion and $4.7 billion, respectively. These operating and finance leases will commence between fiscal year 2020 and fiscal year 2022 with lease terms of 1 year to 16 years.