v3.23.2
Leases
 12 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases
NOTE 10. LEASES
Summary of leases
The Company's operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and satellite transponders. The Company’s finance leases consist of certain satellite transponders. The Company’s operating leases generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised.
Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.
Other required lease disclosures
The total lease cost for operating and finance leases included in the Statements of Operations was as follows:
For the fiscal years ended June 30,
202320222021
Income Statement Location(in millions)
Operating lease costsSelling, general and administrative$121 $125 $135 
Operating lease costsOperating expenses32 36 37 
Finance lease costsDepreciation and amortization25 27 27 
Finance lease costsInterest expense, net2 3 4 
Short term lease costsOperating expenses16 12 15 
Variable lease costsSelling, general and administrative24 24 28 
Total lease costs$220 $227 $246 
Additional information related to the Company’s operating and finance leases under ASU 2016-02:
As of June 30, 2023As of June 30, 2022
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term13.7 years1.8 years11.0 years2.8 years
Weighted-average incremental borrowing rate5.11 %3.64 %3.56 %3.64 %
For the fiscal years ended June 30,
202320222021
(in millions)
Cash paid - Operating lease liabilities$172 $182 $184 
Cash paid - Finance lease liabilities - principal24 27 30 
Cash paid - Finance lease liabilities - interest2 3 4 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities248 72 25 
Future minimum lease payments as of June 30, 2023 are as follows:
As of June 30, 2023
Operating LeasesFinance Leases
(in millions)
Fiscal 2024$169 $28 
Fiscal 2025158 15 
Fiscal 2026141 — 
Fiscal 2027137 — 
Fiscal 2028100 — 
Thereafter1,084 — 
Total future minimum lease payments$1,789 $43 
Less: interest(549)(1)
Present value of minimum payments$1,240 $42 
Leases
NOTE 10. LEASES
Summary of leases
The Company's operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and satellite transponders. The Company’s finance leases consist of certain satellite transponders. The Company’s operating leases generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised.
Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.
Other required lease disclosures
The total lease cost for operating and finance leases included in the Statements of Operations was as follows:
For the fiscal years ended June 30,
202320222021
Income Statement Location(in millions)
Operating lease costsSelling, general and administrative$121 $125 $135 
Operating lease costsOperating expenses32 36 37 
Finance lease costsDepreciation and amortization25 27 27 
Finance lease costsInterest expense, net2 3 4 
Short term lease costsOperating expenses16 12 15 
Variable lease costsSelling, general and administrative24 24 28 
Total lease costs$220 $227 $246 
Additional information related to the Company’s operating and finance leases under ASU 2016-02:
As of June 30, 2023As of June 30, 2022
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term13.7 years1.8 years11.0 years2.8 years
Weighted-average incremental borrowing rate5.11 %3.64 %3.56 %3.64 %
For the fiscal years ended June 30,
202320222021
(in millions)
Cash paid - Operating lease liabilities$172 $182 $184 
Cash paid - Finance lease liabilities - principal24 27 30 
Cash paid - Finance lease liabilities - interest2 3 4 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities248 72 25 
Future minimum lease payments as of June 30, 2023 are as follows:
As of June 30, 2023
Operating LeasesFinance Leases
(in millions)
Fiscal 2024$169 $28 
Fiscal 2025158 15 
Fiscal 2026141 — 
Fiscal 2027137 — 
Fiscal 2028100 — 
Thereafter1,084 — 
Total future minimum lease payments$1,789 $43 
Less: interest(549)(1)
Present value of minimum payments$1,240 $42