Leases

12 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Leases

The Company has operating and finance leases for data centers, corporate offices and certain equipment. Our leases have remaining lease terms of one to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Operating lease cost	$	404	$	484	$	616
Short-term lease cost	35		40		53
Variable lease cost	73		73		56
Sublease income	(18)		(32)		(40)
Total operating costs	$	494	$	565	$	685

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$	404	$	484	$	616
ROU assets obtained in exchange for operating lease liabilities(1)	$	227	$	279	$	530

(1) There were $1,142 million, $1,085 million, and $763 million in modifications and terminations in fiscal 2023, 2022, and 2021, respectively. See Note 18 – "Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

		As of
(in millions)	Balance Sheet Line Item	March 31, 2023		March 31, 2022
ROU operating lease assets	Operating right-of-use assets, net	$	909	$	1,133
Operating lease liabilities	Current operating lease liabilities	$	317	$	388
Operating lease liabilities	Non-current operating lease liabilities	648		815
Total operating lease liabilities		$	965	$	1,203

The weighted-average operating lease term was 3.9 years and 4.4 years as of March 31, 2023 and March 31, 2022, respectively. The weighted-average operating lease discount rate was 3.9% and 3.3% as of March 31, 2023 and March 31, 2022, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of March 31, 2023:

	Fiscal Year
(in millions)	2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	334	$	272	$	181	$	88	$	68	$	94	$	1,037
Less: imputed interest													(72)
Total operating lease liabilities													$	965

Finance Leases

The components of finance lease expense were as follows:

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Finance lease cost:
Amortization of right-of-use assets	$	218	$	346	$	433
Interest on lease liabilities	17		27		45
Total finance lease cost	$	235	$	373	$	478

The following table provides supplemental cash flow information related to the Company’s finance leases:

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Interest paid for finance lease liabilities – Operating cash flows	$	17	$	27	$	45
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	315		501		584
Total cash paid in the measurement of finance lease obligations	$	332	$	528	$	629
Capital expenditures through finance lease obligations(1)	$	102	$	233	$	348

(1) See Note 18 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

		As of
(in millions)	Balance Sheet Line Item	March 31, 2023		March 31, 2022
ROU finance lease assets	Property and Equipment, net	$	424	$	602
Finance lease	Short-term debt and current maturities of long-term debt	$	215	$	289
Finance lease	Long-term debt, net of current maturities	287		354
Total finance lease liabilities(1)		$	502	$	643

(1) See Note 11 – “Debt” for further information on finance lease liabilities.

The weighted-average finance lease term was 2.9 years and 2.8 years as of March 31, 2023 and March 31, 2022, respectively. The weighted-average finance lease discount rate was 3.4% and 2.9% as of March 31, 2023 and March 31, 2022, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of March 31, 2023:

	Fiscal Year
(in millions)	2024		2025		2026		2027		2028		Thereafter		Total
Finance lease payments	$	226	$	153	$	91	$	49	$	12	$	—	$	531
Less: imputed interest													(29)
Total finance lease liabilities													$	502

Leases

Leases

The Company has operating and finance leases for data centers, corporate offices and certain equipment. Our leases have remaining lease terms of one to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within one to three years.

Operating Leases

The components of operating lease expense were as follows:

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Operating lease cost	$	404	$	484	$	616
Short-term lease cost	35		40		53
Variable lease cost	73		73		56
Sublease income	(18)		(32)		(40)
Total operating costs	$	494	$	565	$	685

Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and as such, are excluded from the supplemental cash flow information stated below.

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Cash paid for amounts included in the measurement of operating lease liabilities – operating cash flows	$	404	$	484	$	616
ROU assets obtained in exchange for operating lease liabilities(1)	$	227	$	279	$	530

(1) There were $1,142 million, $1,085 million, and $763 million in modifications and terminations in fiscal 2023, 2022, and 2021, respectively. See Note 18 – "Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents operating lease balances:

		As of
(in millions)	Balance Sheet Line Item	March 31, 2023		March 31, 2022
ROU operating lease assets	Operating right-of-use assets, net	$	909	$	1,133
Operating lease liabilities	Current operating lease liabilities	$	317	$	388
Operating lease liabilities	Non-current operating lease liabilities	648		815
Total operating lease liabilities		$	965	$	1,203

The weighted-average operating lease term was 3.9 years and 4.4 years as of March 31, 2023 and March 31, 2022, respectively. The weighted-average operating lease discount rate was 3.9% and 3.3% as of March 31, 2023 and March 31, 2022, respectively.

The following maturity analysis presents expected undiscounted cash payments for operating leases as of March 31, 2023:

	Fiscal Year
(in millions)	2024		2025		2026		2027		2028		Thereafter		Total
Operating lease payments	$	334	$	272	$	181	$	88	$	68	$	94	$	1,037
Less: imputed interest													(72)
Total operating lease liabilities													$	965

Finance Leases

The components of finance lease expense were as follows:

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Finance lease cost:
Amortization of right-of-use assets	$	218	$	346	$	433
Interest on lease liabilities	17		27		45
Total finance lease cost	$	235	$	373	$	478

The following table provides supplemental cash flow information related to the Company’s finance leases:

	For the Fiscal Year Ended
(in millions)	March 31, 2023		March 31, 2022		March 31, 2021
Interest paid for finance lease liabilities – Operating cash flows	$	17	$	27	$	45
Cash paid for amounts included in the measurement of finance lease obligations – financing cash flows	315		501		584
Total cash paid in the measurement of finance lease obligations	$	332	$	528	$	629
Capital expenditures through finance lease obligations(1)	$	102	$	233	$	348

(1) See Note 18 – ”Cash Flows” for further information on non-cash activities affecting cash flows.

The following table presents finance lease balances:

		As of
(in millions)	Balance Sheet Line Item	March 31, 2023		March 31, 2022
ROU finance lease assets	Property and Equipment, net	$	424	$	602
Finance lease	Short-term debt and current maturities of long-term debt	$	215	$	289
Finance lease	Long-term debt, net of current maturities	287		354
Total finance lease liabilities(1)		$	502	$	643

(1) See Note 11 – “Debt” for further information on finance lease liabilities.

The weighted-average finance lease term was 2.9 years and 2.8 years as of March 31, 2023 and March 31, 2022, respectively. The weighted-average finance lease discount rate was 3.4% and 2.9% as of March 31, 2023 and March 31, 2022, respectively.

The following maturity analysis presents expected undiscounted cash payments for finance leases as of March 31, 2023:

	Fiscal Year
(in millions)	2024		2025		2026		2027		2028		Thereafter		Total
Finance lease payments	$	226	$	153	$	91	$	49	$	12	$	—	$	531
Less: imputed interest													(29)
Total finance lease liabilities													$	502