LEASES

9 Months Ended

Mar. 31, 2020

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 March 31,				Nine Months Ended March 31,
		2020		2019		2020		2019
Operating lease cost	$	522	$	431	$	1,465	$	1,254
Finance lease cost:
Amortization of right-of-use assets	$	135	$	100	$	423	$	262
Interest on lease liabilities		87		65		249		179
Total finance lease cost	$	222	$	165	$	672	$	441

Supplemental cash flow information related to leases was as follows:

(In millions)	Three Months Ended March 31,				Nine Months Ended March 31,
		2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	505	$	425	$	1,437	$	1,229
Operating cash flows from finance leases		87		65		249		179
Financing cash flows from finance leases		110		66		293		167
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		680		730		2,611		1,698
Finance leases		259		658		2,611		1,722

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)
	March 31, 2020			June 30, 2019
Operating Leases
Operating lease right-of-use assets	$	8,448		$	7,379
Other current liabilities	$	1,557		$	1,515
Operating lease liabilities		7,248			6,188
Total operating lease liabilities	$	8,805		$	7,703
Finance Leases
Property and equipment, at cost	$	9,366		$	7,041
Accumulated depreciation		(1,198	)		(774	)
Property and equipment, net	$	8,168		$	6,267
Other current liabilities	$	470		$	317
Other long-term liabilities		8,140			6,257
Total finance lease liabilities	$	8,610		$	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		4.1%			4.6%

Maturities of lease liabilities were as follows:

(In millions)
Year Ending June 30,	Operating Leases			Finance Leases
2020 (excluding the nine months ended March 31, 2020)	$	483		$	196
2021		1,810			796
2022		1,627			811
2023		1,445			818
2024		1,226			830
Thereafter		3,764			7,601
Total lease payments		10,355			11,052
Less imputed interest		(1,550	)		(2,442	)
Total	$	8,805		$	8,610

As of March 31, 2020, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $2.7 billion and $3.5 billion, respectively. These operating and finance leases will commence between fiscal year 2020 and fiscal year 2023 with lease terms of 1 year to 16 years.