We have operating and finance leases for datacenters, corporate offices, research and development facilities, Microsoft Experience Centers, and certain equipment. Our leases have remaining lease terms of less than 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)


Year Ended June 30,	2025			2024		2023

Operating lease cost	$	5,524	$	3,555	$	2,875


Finance lease cost:
Amortization of right-of-use assets	$	3,408	$	1,800	$	1,352
Interest on lease liabilities		1,417		734		501


Total finance lease cost	$	4,825	$	2,534	$	1,853

Supplemental cash flow information related to leases was as follows:


(In millions)


Year Ended June 30,	2025			2024		2023

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,931	$	3,550	$	2,706
Operating cash flows from finance leases		1,372		734		501
Financing cash flows from finance leases		2,283		1,286		1,056

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		7,826		6,703		3,514
Finance leases		20,511		11,633		3,128

Supplemental balance sheet information related to leases was as follows:


(In millions, except lease term and discount rate)


June 30,	2025			2024

Operating Leases

Operating lease right-of-use assets	$	24,823		$	18,961


Other current liabilities	$	5,424		$	3,580
Operating lease liabilities		17,437			15,497


Total operating lease liabilities	$	22,861		$	19,077


Finance Leases

Property and equipment, at cost	$	53,876		$	32,248
Accumulated depreciation		(9,861	)		(6,386	)


Property and equipment, net	$	44,015		$	25,862


Other current liabilities	$	3,172		$	2,349
Other long-term liabilities		43,000			24,796


Total finance lease liabilities	$	46,172		$	27,145


Weighted Average Remaining Lease Term

Operating leases		6 years			7 years
Finance leases		13 years			12 years

Weighted Average Discount Rate

Operating leases		3.5%			3.3%
Finance leases		4.2%			3.9%

The following table outlines maturities of our lease liabilities as of June 30, 2025:


(In millions)


Year Ending June 30,	Operating Leases			Finance Leases

2026	$	6,111		$	5,008
2027		5,237			5,157
2028		3,495			5,187
2029		2,419			4,521
2030		2,017			4,382
Thereafter		6,202			36,251


Total lease payments		25,481			60,506
Less imputed interest		(2,620	)		(14,334	)


Total	$	22,861		$	46,172

As of June 30, 2025, we had additional leases, primarily for datacenters, that had not yet commenced of $92.7 billion. These leases will commence between fiscal year 2026 and fiscal year 2031 with lease terms of 1 year to 20 years.