Item 8

  

Supplemental balance sheet information related to leases was as follows:

> **(In millions, except lease term and discount rate)**
>
> June 30, ................................ 2025 / 2025 / 2024 / 2024
> Operating Leases
> Operating lease right-of-use assets ..... $ / 24,823 / $ / 18,961
> Other current liabilities ............... $ / 5,424 / $ / 3,580
> Operating lease liabilities ............. 17,437 / 15,497
> Total operating lease liabilities ....... $ / 22,861 / $ / 19,077
> Finance Leases
> Property and equipment, at cost ......... $ / 53,876 / $ / 32,248
> Accumulated depreciation ................ ( 9,861 / ) / ( 6,386 / )
> Property and equipment, net ............. $ / 44,015 / $ / 25,862
> Other current liabilities ............... $ / 3,172 / $ / 2,349
> Other long-term liabilities ............. 43,000 / 24,796
> Total finance lease liabilities ......... $ / 46,172 / $ / 27,145
> Weighted Average Remaining Lease Term
> Operating leases ........................ 6   years / 7   years
> Finance leases .......................... 13   years / 12   years
> Weighted Average Discount Rate
> Operating leases ........................ 3.5 % / 3.3 %
> Finance leases .......................... 4.2 % / 3.9 %

  

The following table outlines maturities of our lease liabilities as of June 30, 2025:

> **(In millions)**
>
> Year Ending June 30, .................... Operating    Leases / Operating    Leases / Finance    Leases / Finance    Leases
> 2026 .................................... $ / 6,111 / $ / 5,008
> 2027 .................................... 5,237 / 5,157
> 2028 .................................... 3,495 / 5,187
> 2029 .................................... 2,419 / 4,521
> 2030 .................................... 2,017 / 4,382
> Thereafter .............................. 6,202 / 36,251
> Total lease payments .................... 25,481 / 60,506
> Less imputed interest ................... ( 2,620 / ) / ( 14,334 / )
> Total ................................... $ / 22,861 / $ / 46,172

As of June 30, 2025, we had additional leases, primarily for datacenters, that had not yet commenced of $ 92.7  billion. These leases will commence between fiscal year 2026 and fiscal year 2031 with lease terms of   1   year to   20   years.

  

NOTE 14 — CONTINGENCIES

Irish Data Protection Commission Matter

In 2018, the Irish Data Protection Commission (“IDPC”) began investigating a complaint against LinkedIn as to whether LinkedIn’s targeted advertising practices violated the recently implemented European Union General Data Protection Regulation (“GDPR”). Microsoft cooperated throughout the period of inquiry. In October 2024, the IDPC provided LinkedIn with a final decision alleging GDPR violations and assessing a fine. In November 2024, LinkedIn appealed the final decision to the Irish courts, and the next hearing is scheduled for December 2025.

  

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PART II