v3.26.1
Leases
 12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
We primarily enter into lease agreements for office space, distribution centers, certain manufacturing facilities and equipment. Certain leases contain options that provide us with the ability to extend the lease term. Such options are included in the lease term when it is reasonably certain that the option will be exercised. When accounting for leases, we combine payments for leased assets, related services and other components of a lease. Payments within certain lease agreements are adjusted periodically for changes in an index or rate. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets.
The discount rate implicit within our leases is generally not determinable, and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and the currency in which lease payments are made.
The components of lease expense are as follows:
For the years ended June 30,202620252024
Operating lease expense$65 $64 $68 
Finance lease cost:
  Amortization of lease assets8 8 7 
  Interest on lease liabilities 5 5 5 
Short-term lease cost17 13 9 
Variable lease cost7 6 6 
Total lease cost$102 $96 $95 
Supplemental cash flow information related to leases is as follows:
For the years ended June 30,202620252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases$65 $64 $65 
Operating cash outflows - interest payments on finance leases5 5 5 
Financing cash outflows - payments on finance lease obligations6 5 5 
Right-of-use assets obtained in exchange for operating lease obligations46 18 42 
Right-of-use assets obtained in exchange for finance lease obligations4 2 4 
Supplemental balance sheet information related to operating leases is as follows:
June 30,20262025
Operating leases
Operating lease right-of-use assets (included within other long-term assets)$201$192
Current operating lease liabilities (included within other current liabilities)$49$47
Long-term operating lease liabilities (included within other long-term liabilities)164154
Total operating lease liabilities$213$201
Finance leases
Property, plant and equipment$113$127
Accumulated depreciation(28)(25)
Property, plant and equipment, net$85$102
Notes payable and long-term debt payable within one year $6$6
Long-term debt86102
Total finance lease liabilities$92$108
Weighted-average remaining lease term
Operating leases6.3 years6.3 years
Finance leases18.1 years18.8 years
Weighted-average discount rate
Operating leases4.4 %4.3 %
Finance leases5.2 %5.2 %
Maturities of lease liabilities at June 30, 2026 are as follows:
Operating LeasesFinance Leases
2027$57 $11 
202846 10 
202934 9 
203026 9 
203120 8 
Thereafter65 97 
Total lease payments$248 $144 
Less imputed interest35 52 
Total lease liabilities$213 $92 
Leases Leases
We primarily enter into lease agreements for office space, distribution centers, certain manufacturing facilities and equipment. Certain leases contain options that provide us with the ability to extend the lease term. Such options are included in the lease term when it is reasonably certain that the option will be exercised. When accounting for leases, we combine payments for leased assets, related services and other components of a lease. Payments within certain lease agreements are adjusted periodically for changes in an index or rate. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets.
The discount rate implicit within our leases is generally not determinable, and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and the currency in which lease payments are made.
The components of lease expense are as follows:
For the years ended June 30,202620252024
Operating lease expense$65 $64 $68 
Finance lease cost:
  Amortization of lease assets8 8 7 
  Interest on lease liabilities 5 5 5 
Short-term lease cost17 13 9 
Variable lease cost7 6 6 
Total lease cost$102 $96 $95 
Supplemental cash flow information related to leases is as follows:
For the years ended June 30,202620252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases$65 $64 $65 
Operating cash outflows - interest payments on finance leases5 5 5 
Financing cash outflows - payments on finance lease obligations6 5 5 
Right-of-use assets obtained in exchange for operating lease obligations46 18 42 
Right-of-use assets obtained in exchange for finance lease obligations4 2 4 
Supplemental balance sheet information related to operating leases is as follows:
June 30,20262025
Operating leases
Operating lease right-of-use assets (included within other long-term assets)$201$192
Current operating lease liabilities (included within other current liabilities)$49$47
Long-term operating lease liabilities (included within other long-term liabilities)164154
Total operating lease liabilities$213$201
Finance leases
Property, plant and equipment$113$127
Accumulated depreciation(28)(25)
Property, plant and equipment, net$85$102
Notes payable and long-term debt payable within one year $6$6
Long-term debt86102
Total finance lease liabilities$92$108
Weighted-average remaining lease term
Operating leases6.3 years6.3 years
Finance leases18.1 years18.8 years
Weighted-average discount rate
Operating leases4.4 %4.3 %
Finance leases5.2 %5.2 %
Maturities of lease liabilities at June 30, 2026 are as follows:
Operating LeasesFinance Leases
2027$57 $11 
202846 10 
202934 9 
203026 9 
203120 8 
Thereafter65 97 
Total lease payments$248 $144 
Less imputed interest35 52 
Total lease liabilities$213 $92