v3.26.1
Leases
 12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
    The components of lease expense are as follows:
Years ended June 30,
($ in millions)202620252024
Operating lease expense (1)$289 $167 $135 
Short-term and variable lease expense (2)39 27 14 
Finance lease expense
Amortization of right-of-use assets (2)6 4 4 
Interest on lease liabilities (3)2 1 1 
Total lease expense$336 $199 $154 
(1)Included in both cost of sales and selling, general, and administrative expenses
(2)Included primarily in cost of sales
(3)Included in interest expense

    Supplemental balance sheet information related to leases:
June 30,
($ in millions)Balance Sheet Location20262025
Assets
Operating lease right-of-use assets, netOperating lease assets$1,039 $1,116 
Finance lease assets, net (1)Property, plant, and equipment, net35 75 
Total lease assets, net$1,074 $1,191 
Liabilities
Operating leases:
Current operating lease liabilitiesOther current liabilities$216 $240 
Non-current operating lease liabilitiesOperating lease liabilities852 910 
Finance leases:
Current finance lease liabilitiesCurrent portion of long-term debt13 15 
Non-current finance lease liabilitiesLong-term debt, less current portion31 41 
Total lease liabilities$1,112 $1,206 
(1)Finance lease assets are recorded net of accumulated amortization of $11 million and $15 million as of June 30, 2026 and 2025, respectively.
    Supplemental cash flow information related to leases:
Years ended June 30,
($ in millions)202620252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$285 $159 $127 
Operating cash flows from finance leases2 1 1 
Financing cash flows from finance leases16 12 11 
Lease assets obtained in exchange for new lease obligations:
Operating leases (1)$82 $639 $44 
Finance leases2 20 3 
Other non-cash modifications to lease assets:
Operating leases$43 $20 $73 
Finance leases(36)— — 
(1)Fiscal year 2025 primarily includes operating leases acquired in the Merger.
    
    The following table presents the maturities of the Company's lease liabilities recorded on the consolidated balance sheets as of the fiscal year ending June 30, 2026:
($ in millions)Operating LeasesFinance Leases
2027$253 $14 
2028228 5 
2029189 4 
2030128 3 
203197 3 
Thereafter380 27 
Total lease payments1,275 56 
Less: imputed interest(207)(12)
Total lease liabilities$1,068 $44 

    The Company's leases do not contain any material residual value guarantees or material restrictive covenants. The table above excludes approximately $40 million of minimum lease payments relating to operating leases for which the Company has committed to, but which have not yet commenced as of June 30, 2026.

    The weighted-average remaining lease term and discount rate are as follows:
June 30,
20262025
Weighted-average remaining lease term (in years):
Operating leases7.37.7
Finance leases12.09.3
Weighted-average discount rate:
Operating leases4.6 %4.6 %
Finance leases4.2 %3.9 %
Leases Leases
    The components of lease expense are as follows:
Years ended June 30,
($ in millions)202620252024
Operating lease expense (1)$289 $167 $135 
Short-term and variable lease expense (2)39 27 14 
Finance lease expense
Amortization of right-of-use assets (2)6 4 4 
Interest on lease liabilities (3)2 1 1 
Total lease expense$336 $199 $154 
(1)Included in both cost of sales and selling, general, and administrative expenses
(2)Included primarily in cost of sales
(3)Included in interest expense

    Supplemental balance sheet information related to leases:
June 30,
($ in millions)Balance Sheet Location20262025
Assets
Operating lease right-of-use assets, netOperating lease assets$1,039 $1,116 
Finance lease assets, net (1)Property, plant, and equipment, net35 75 
Total lease assets, net$1,074 $1,191 
Liabilities
Operating leases:
Current operating lease liabilitiesOther current liabilities$216 $240 
Non-current operating lease liabilitiesOperating lease liabilities852 910 
Finance leases:
Current finance lease liabilitiesCurrent portion of long-term debt13 15 
Non-current finance lease liabilitiesLong-term debt, less current portion31 41 
Total lease liabilities$1,112 $1,206 
(1)Finance lease assets are recorded net of accumulated amortization of $11 million and $15 million as of June 30, 2026 and 2025, respectively.
    Supplemental cash flow information related to leases:
Years ended June 30,
($ in millions)202620252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$285 $159 $127 
Operating cash flows from finance leases2 1 1 
Financing cash flows from finance leases16 12 11 
Lease assets obtained in exchange for new lease obligations:
Operating leases (1)$82 $639 $44 
Finance leases2 20 3 
Other non-cash modifications to lease assets:
Operating leases$43 $20 $73 
Finance leases(36)— — 
(1)Fiscal year 2025 primarily includes operating leases acquired in the Merger.
    
    The following table presents the maturities of the Company's lease liabilities recorded on the consolidated balance sheets as of the fiscal year ending June 30, 2026:
($ in millions)Operating LeasesFinance Leases
2027$253 $14 
2028228 5 
2029189 4 
2030128 3 
203197 3 
Thereafter380 27 
Total lease payments1,275 56 
Less: imputed interest(207)(12)
Total lease liabilities$1,068 $44 

    The Company's leases do not contain any material residual value guarantees or material restrictive covenants. The table above excludes approximately $40 million of minimum lease payments relating to operating leases for which the Company has committed to, but which have not yet commenced as of June 30, 2026.

    The weighted-average remaining lease term and discount rate are as follows:
June 30,
20262025
Weighted-average remaining lease term (in years):
Operating leases7.37.7
Finance leases12.09.3
Weighted-average discount rate:
Operating leases4.6 %4.6 %
Finance leases4.2 %3.9 %