LEASES

3 Months Ended

Sep. 30, 2020

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 September 30,		2020		2019
Operating lease cost	$	498	$	465
Finance lease cost:
Amortization of right-of-use assets	$	206	$	125
Interest on lease liabilities		92		78
Total finance lease cost	$	298	$	203

Supplemental cash flow information related to leases was as follows:

(In millions)
Three Months Ended September 30,		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	491	$	453
Operating cash flows from finance leases		92		78
Financing cash flows from finance leases		136		79
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		678		983
Finance leases		635		1,489

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)
	September 30, 2020			June 30, 2020
Operating Leases
Operating lease right-of-use assets	$	9,047		$	8,753
Other current liabilities	$	1,744		$	1,616
Operating lease liabilities		7,753			7,671
Total operating lease liabilities	$	9,497		$	9,287
Finance Leases
Property and equipment, at cost	$	11,174		$	10,371
Accumulated depreciation		(1,591	)		(1,385	)
Property and equipment, net	$	9,583		$	8,986
Other current liabilities	$	596		$	540
Other long-term liabilities		9,571			8,956
Total finance lease liabilities	$	10,167		$	9,496
Weighted Average Remaining Lease Term
Operating leases		7 years			8 years
Finance leases		12 years			13 years
Weighted Average Discount Rate
Operating leases		2.6%			2.7%
Finance leases		3.8%			3.9%

Maturities of lease liabilities were as follows:

(In millions)
Year Ending June 30,	Operating Leases			Finance Leases
2021 (excluding the three months ended September 30, 2020)	$	1,522		$	709
2022		1,738			958
2023		1,566			968
2024		1,362			982
2025		1,090			1,304
Thereafter		3,513			7,805
Total lease payments		10,791			12,726
Less imputed interest		(1,294	)		(2,559	)
Total	$	9,497		$	10,167

As of September 30, 2020, we have additional operating and finance leases, primarily for datacenters, that have not yet commenced of $4.3 billion and $4.6 billion, respectively. These operating and finance leases will commence between fiscal year 2021 and fiscal year 2024 with lease terms of 1 year to 16 years.