v3.26.1
LEASES
 12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases LEASES
The Company has operating and finance leases primarily for real estate properties, including corporate offices, facilities to support the Company’s manufacturing, assembly, research and development and distribution operations and retail stores, as well as information technology equipment, automobiles and office equipment, with remaining terms of approximately 1 year to 54 years. Some of the Company’s lease contracts include options at commencement to extend the leases for up to 30 years, while others include options to terminate the leases within 25 years.
A summary of total lease costs and other information relating to the Company’s finance and operating leases is as follows:
June 30,
($ in millions)202620252024
Total lease cost
Finance lease cost:
Amortization of right-of-use assets
$6 $9 $11 
Interest on lease liabilities
— — — 
Operating lease cost
520 496 458 
Short-term lease cost
40 32 45 
Variable lease cost
234 252 227 
Total
$800 $789 $741 
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases
$3 $5 $10 
Operating cash flows from operating leases
$505 $515 $489 
Right-of-use assets obtained in exchange for new finance lease liabilities$1 $— $1 
Right-of-use assets obtained in exchange for new operating lease liabilities$293 $537 $466 
Weighted-average remaining lease term – finance leases
16 years16 years16 years
Weighted-average remaining lease term – operating leases
8 years8 years9 years
Weighted-average discount rate – finance leases
0.2 %0.2 %0.3 %
Weighted-average discount rate – operating leases
3.0 %2.8 %2.8 %
The total future minimum lease payments, over the remaining lease term, relating to the Company’s operating and finance leases for each of the next five fiscal years and thereafter is as follows:
(In millions)Operating LeasesFinance Leases
Fiscal 2027$447 $3 
Fiscal 2028350 2 
Fiscal 2029264 2 
Fiscal 2030209 2 
Fiscal 2031176 2 
Thereafter735 17 
Total future minimum lease payments2,181 28 
Less imputed interest(241)— 
Total$1,940 $28 
Operating and finance lease liabilities included in the consolidated balance sheet are as follows:
June 30,
20262025
(In millions)Operating LeasesFinance LeasesOperating LeasesFinance Leases
Total current liabilities
$399 $3 $406 $3 
Total noncurrent liabilities
1,541 25 1,744 28 
Total
$1,940 $28 $2,150 $31 
The ROU assets and lease liabilities related to finance leases are included in Other assets and in Current debt and Long-term debt, respectively, in the accompanying consolidated balance sheets as of June 30, 2026 and 2025.
Leases LEASES
The Company has operating and finance leases primarily for real estate properties, including corporate offices, facilities to support the Company’s manufacturing, assembly, research and development and distribution operations and retail stores, as well as information technology equipment, automobiles and office equipment, with remaining terms of approximately 1 year to 54 years. Some of the Company’s lease contracts include options at commencement to extend the leases for up to 30 years, while others include options to terminate the leases within 25 years.
A summary of total lease costs and other information relating to the Company’s finance and operating leases is as follows:
June 30,
($ in millions)202620252024
Total lease cost
Finance lease cost:
Amortization of right-of-use assets
$6 $9 $11 
Interest on lease liabilities
— — — 
Operating lease cost
520 496 458 
Short-term lease cost
40 32 45 
Variable lease cost
234 252 227 
Total
$800 $789 $741 
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases
$3 $5 $10 
Operating cash flows from operating leases
$505 $515 $489 
Right-of-use assets obtained in exchange for new finance lease liabilities$1 $— $1 
Right-of-use assets obtained in exchange for new operating lease liabilities$293 $537 $466 
Weighted-average remaining lease term – finance leases
16 years16 years16 years
Weighted-average remaining lease term – operating leases
8 years8 years9 years
Weighted-average discount rate – finance leases
0.2 %0.2 %0.3 %
Weighted-average discount rate – operating leases
3.0 %2.8 %2.8 %
The total future minimum lease payments, over the remaining lease term, relating to the Company’s operating and finance leases for each of the next five fiscal years and thereafter is as follows:
(In millions)Operating LeasesFinance Leases
Fiscal 2027$447 $3 
Fiscal 2028350 2 
Fiscal 2029264 2 
Fiscal 2030209 2 
Fiscal 2031176 2 
Thereafter735 17 
Total future minimum lease payments2,181 28 
Less imputed interest(241)— 
Total$1,940 $28 
Operating and finance lease liabilities included in the consolidated balance sheet are as follows:
June 30,
20262025
(In millions)Operating LeasesFinance LeasesOperating LeasesFinance Leases
Total current liabilities
$399 $3 $406 $3 
Total noncurrent liabilities
1,541 25 1,744 28 
Total
$1,940 $28 $2,150 $31 
The ROU assets and lease liabilities related to finance leases are included in Other assets and in Current debt and Long-term debt, respectively, in the accompanying consolidated balance sheets as of June 30, 2026 and 2025.