We have operating and finance leases that primarily relate to certain of our data centers and facilities. As of May 31, 2025, our leases substantially have remaining terms of one year to fifteen years, some of which include options to extend and/or terminate the leases.

The components of lease expense were as follows:


	Year Ended May 31,
(in millions)	2025		2024		2023
Operating lease cost	$	1,716	$	1,159	$	883
Finance lease cost:
Amortization of ROU assets	$	48	$	—	$	—
Interest on lease liabilities		38		—		—
Total finance lease cost	$	86	$	—	$	—

Supplemental balance sheet information related to operating leases was as follows:


	As of May 31,
(Dollars in millions)	2025		2024
Operating lease ROU assets	$	13,145	$	7,290
Operating lease liabilities:
Operating lease liabilities, current	$	1,914	$	1,290
Operating lease liabilities, non-current		11,536		6,255
Total operating lease liabilities	$	13,450	$	7,545
Weighted average remaining lease term	10 years		9 years
Weighted average discount rate	5.3%		5.1%

Supplemental cash flow information related to operating leases was as follows:


	Year Ended May 31,
(in millions)	2025		2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,685	$	1,168	$	894
ROU assets obtained in exchange for operating lease obligations	$	6,970	$	4,246	$	1,957

As of May 31, 2025, ROU assets, net of $55 million of accumulated depreciation, current lease liabilities and non-current lease liabilities for our finance leases were $2.9 billion, $257 million and $2.7 billion, respectively. In fiscal 2025, we recorded finance lease ROU assets of $2.9 billion in exchange for finance lease obligations. Cash paid for amounts included in the measurement of finance lease liabilities was $27 million in fiscal 2025. As of May 31, 2025, the weighted average remaining lease term for finance leases was approximately fifteen years and the weighted average discount rate used for calculating finance lease obligations was 5.5%. We had no finance leases for the year ended and as of May 31, 2024.


	Operating Leases			Finance Leases
Fiscal 2026	$	1,964		$	266
Fiscal 2027		1,869			249
Fiscal 2028		1,795			256
Fiscal 2029		1,702			264
Fiscal 2030		1,661			272
Thereafter		8,692			3,104
Total lease payments		17,683			4,411
Less: imputed interest		(4,233	)		(1,477	)
Total lease liability	$	13,450		$	2,934

As of May 31, 2025, we have $43.4 billion of additional lease commitments, primarily for data centers, that are generally expected to commence between fiscal 2026 and fiscal 2028 and for terms of ten to sixteen years that were not reflected on our consolidated balance sheet as of May 31, 2025 or in the maturities table above.

In the ordinary course of business, we enter into certain unconditional purchase obligations with our suppliers, which are agreements that are enforceable and legally binding and specify terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the payment. Certain routine arrangements that are entered into in the ordinary course of business are not included in the amounts below, as they are generally entered into in order to secure pricing or other negotiated terms and are difficult to quantify in a meaningful way or are for terms of less than one year.

As of May 31, 2025, our unconditional purchase and certain other obligations were as follows (in millions):


Fiscal 2026	$	947
Fiscal 2027		401
Fiscal 2028		267
Fiscal 2029		262
Fiscal 2030		122
Thereafter		227
Total	$	2,226

As described in Note 6 above, as of May 31, 2025 we have senior notes and other borrowings that mature at various future dates and derivative financial instruments outstanding that we leverage to manage certain risks and exposures.

Our cloud, license and hardware sales agreements generally include certain provisions for indemnifying customers against liabilities if our products infringe a third party’s intellectual property rights. To date, we have not incurred any material costs as a result of such indemnifications and have not accrued any material liabilities related to such obligations in our consolidated financial statements. Certain of our sales agreements also include provisions indemnifying customers against liabilities in the event we breach confidentiality or service level requirements. It is not possible to determine the maximum potential amount under these indemnification agreements due to our limited and infrequent history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement.

Our Oracle Cloud Services agreements generally include a warranty that the cloud services will be performed in all material respects as defined in the agreement during the service period. Our license and hardware agreements also