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Leases
 12 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases
NOTE 10. LEASES
On July 1, 2019, the Company adopted ASU 2016-02 on a modified retrospective basis and recognized a $9 million cumulative-effect adjustment to the opening balance of Accumulated deficit related to previous sale leaseback transactions.
Summary of leases
The Company's operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and satellite transponders. During the fourth quarter of fiscal 2020, the Company modified its contract related to its satellite transponders which resulted in certain transponders being classified as finance leases. Certain leases for satellite transponders were determined to be operating leases in accordance with ASU 2016-02. The Company’s operating leases generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised. 
Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.
Other required lease disclosures
The total lease cost for operating and finance leases included in the Statements of Operations was as follows:
For the fiscal years ended June 30,
202220212020
Income Statement Location(in millions)
Operating lease costsSelling, general and administrative$125 $135 $139 
Operating lease costsOperating expenses36 37 64 
Finance lease costsDepreciation and amortization27 27 6 
Finance lease costsInterest expense, net3 4 1 
Short term lease costsOperating expenses12 15 9 
Variable lease costsSelling, general and administrative24 28 41 
Total lease costs$227 $246 $260 
Additional information related to the Company’s operating and finance leases under ASU 2016-02:
As of June 30, 2022As of June 30, 2021
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term11.0 years2.8 years11.8 years3.7 years
Weighted-average incremental borrowing rate3.56 %3.64 %3.54 %3.64 %
For the fiscal years ended June 30,
20222021
(in millions)
Cash paid - Operating lease liabilities$182 $184 
Cash paid - Finance lease liabilities - principal27 30 
Cash paid - Finance lease liabilities - interest3 4 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities72 25 
Future minimum lease payments as of June 30, 2022 are as follows:
As of June 30, 2022
Operating LeasesFinance Leases
(in millions)
Fiscal 2023$172 $29 
Fiscal 2024157 26 
Fiscal 2025143 15 
Fiscal 2026126 — 
Fiscal 2027120 — 
Thereafter614 — 
Total future minimum lease payments$1,332 $70 
Less: interest(246)(3)
Present value of minimum payments$1,086 $67 
Leases
NOTE 10. LEASES
On July 1, 2019, the Company adopted ASU 2016-02 on a modified retrospective basis and recognized a $9 million cumulative-effect adjustment to the opening balance of Accumulated deficit related to previous sale leaseback transactions.
Summary of leases
The Company's operating leases primarily consist of real estate, including office space, warehouse space and printing facilities, and satellite transponders. During the fourth quarter of fiscal 2020, the Company modified its contract related to its satellite transponders which resulted in certain transponders being classified as finance leases. Certain leases for satellite transponders were determined to be operating leases in accordance with ASU 2016-02. The Company’s operating leases generally include options to extend the lease term or terminate the lease. Such options do not impact the Company’s lease term assessment until the Company is reasonably certain that the option will be exercised. 
Certain of the Company’s leases include rent adjustments which may be indexed to various metrics, including the consumer price index or other inflationary indexes. As a general matter, the Company’s real estate lease arrangements typically require adjustments resulting from changes in real estate taxes and other costs to operate the leased asset.
Other required lease disclosures
The total lease cost for operating and finance leases included in the Statements of Operations was as follows:
For the fiscal years ended June 30,
202220212020
Income Statement Location(in millions)
Operating lease costsSelling, general and administrative$125 $135 $139 
Operating lease costsOperating expenses36 37 64 
Finance lease costsDepreciation and amortization27 27 6 
Finance lease costsInterest expense, net3 4 1 
Short term lease costsOperating expenses12 15 9 
Variable lease costsSelling, general and administrative24 28 41 
Total lease costs$227 $246 $260 
Additional information related to the Company’s operating and finance leases under ASU 2016-02:
As of June 30, 2022As of June 30, 2021
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term11.0 years2.8 years11.8 years3.7 years
Weighted-average incremental borrowing rate3.56 %3.64 %3.54 %3.64 %
For the fiscal years ended June 30,
20222021
(in millions)
Cash paid - Operating lease liabilities$182 $184 
Cash paid - Finance lease liabilities - principal27 30 
Cash paid - Finance lease liabilities - interest3 4 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities72 25 
Future minimum lease payments as of June 30, 2022 are as follows:
As of June 30, 2022
Operating LeasesFinance Leases
(in millions)
Fiscal 2023$172 $29 
Fiscal 2024157 26 
Fiscal 2025143 15 
Fiscal 2026126 — 
Fiscal 2027120 — 
Thereafter614 — 
Total future minimum lease payments$1,332 $70 
Less: interest(246)(3)
Present value of minimum payments$1,086 $67