LEASES
The Company has several commitments under operating leases for warehouses, buildings, and equipment. The Company also has a number of finance leases with an immaterial impact on its consolidated financial statements. Leases have remaining lease terms ranging from approximately 1 year to 19 years.
The components of lease cost recognized were as follow (in millions):
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| Lease cost | Fiscal Year Ended |
| March 31, 2025 | | March 31, 2024 |
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| Operating lease cost | $ | 173 | | | $ | 167 | |
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Amounts reported in the consolidated balance sheet as of the fiscal years ended March 31, 2025 and 2024 were (in millions, except weighted average lease term and discount rate):
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| As of March 31, 2025 | | As of March 31, 2024 |
| Operating Leases: | | | |
| Operating lease right of use assets | $ | 562 | | $ | 601 |
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| Operating lease liabilities * | 591 | | 626 |
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| Weighted-average remaining lease term (In years) | | | |
| Operating leases | 6.0 | | 6.3 |
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| Weighted-average discount rate | | | |
| Operating leases | 4.4 | % | | 4.4 | % |
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* Operating lease liabilities includes $135 million current lease liabilities and $456 million non-current lease liabilities.
Other information related to leases was as follow (in millions):
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| Fiscal Year Ended |
| March 31, 2025 | | March 31, 2024 |
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| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 168 | | | $ | 160 | |
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| Right‑of‑use assets obtained in exchange for lease liabilities | | | |
| Operating Lease | $ | 106 | | | $ | 134 | |
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Future lease payments under non-cancellable leases as of March 31, 2025 were as follows (in millions):
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| Fiscal Year Ended March 31, | Operating Leases |
| 2026 | $ | 158 | |
| 2027 | 126 | |
| 2028 | 106 | |
| 2029 | 84 | |
| 2030 | 62 | |
| Thereafter | 134 | |
| Total undiscounted lease payments | 670 | |
| Less: imputed interest | 79 | |
| Total lease liabilities | $ | 591 | |
Total rent expense amounted to $194 million, $188 million and $182 million in fiscal years 2025, 2024 and 2023, respectively.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.