{
  "schema": "aic.lease-cash-comparison/1",
  "reviewed_on": "2026-10-26",
  "currency": "USD",
  "units": "millions",
  "issuer": "Microsoft",
  "scope": "Consolidated company, not AI-only",
  "sources": {
    "annual_report": {"url": "https://www.microsoft.com/investor/reports/ar26/", "locators": ["Cash Flows Statements, year ended June 30, 2026", "Note 13 Leases"]},
    "earnings_call": {"url": "https://www.microsoft.com/en-us/investor/events/fy-2026/earnings-fy-2026-q4", "event_date": "2026-07-29", "locator": "Amy Hood, before FY27 outlook"}
  },
  "period": {"start": "2025-07-01", "end": "2026-06-30", "basis": "fiscal_year"},
  "cash_ledger": {
    "measurement": "period_cash_flow",
    "lease_cash_note_scope": "The three disclosed lease-cash rows concern payments included in measurement of lease liabilities, not a reconstructed total of every lease-related cash flow.",
    "operating_cash_flow": {"value": 182935, "source_label": "Net cash from operations", "source": "annual_report"},
    "cash_ppe": {"value": 115948, "reported_signed_value": -115948, "source_label": "Additions to property and equipment", "source": "annual_report"},
    "operating_lease_cash": {"value": 6443, "source_label": "Operating cash flows from operating leases", "already_in_operating_cash_flow": true, "source": "annual_report"},
    "finance_lease_interest_cash": {"value": 2547, "source_label": "Operating cash flows from finance leases", "already_in_operating_cash_flow": true, "source": "annual_report"},
    "finance_lease_principal": {"value": 3101, "source_label": "Financing cash flows from finance leases", "already_in_operating_cash_flow": false, "source": "annual_report"},
    "residual_scope": "Operating cash less cash PP&E and finance-lease principal only. Other investing and financing flows remain outside; this is not ending cash, unrestricted liquidity or an issuer-defined FCF measure."
  },
  "asset_additions_ledger": {
    "measurement": "noncash_assets_obtained_for_lease_obligations",
    "source_label": "Right-of-use assets obtained in exchange for lease obligations",
    "operating": 4555,
    "finance": 24608,
    "source": "annual_report",
    "do_not_treat_as": ["Current-period lease cash", "Change in all future signed commitments"]
  },
  "future_obligations_ledger": {
    "as_of": "2026-06-30",
    "measurement": "future_contractual_payments",
    "commenced_undiscounted_payments": {"operating": 24706, "finance": 89686, "source": "annual_report"},
    "not_yet_commenced": {"value": 329100, "reported_text": "$329.1 billion", "precision": "rounded to $0.1 billion", "source": "annual_report"},
    "commencement_window": "Fiscal years 2027 to 2033",
    "qualifier": "Some uncommenced arrangements depend on contractual conditions",
    "do_not_treat_as": ["Cash paid in FY26", "FY26 new commitments only", "Recognized balance-sheet lease liabilities at present value"]
  },
  "management_presentation": {
    "source": "earnings_call",
    "useful_life_assets": ["Datacenters", "Office buildings"],
    "useful_life_years_before": 15,
    "useful_life_years_after": 25,
    "effective_from": "Start of FY27",
    "calendar_2026_capex_expectation": 175000,
    "capex_scope": "Management capex includes finance leases, excludes operating leases",
    "underlying_investment_comment": "Unchanged outside the useful-life effect",
    "expected_fy27_operating_income_effect": "Minimal benefit",
    "not_a_change_to": "GPU useful lives in this announcement"
  },
  "illustration": {
    "units": "normalized cash units, not Microsoft dollars",
    "cash_before_selected_lease_payment": 180,
    "cash_ppe": 100,
    "total_lease_payment": 20,
    "finance_interest_component": 5,
    "scope": "Single-period U.S. GAAP cash-classification illustration; cash amounts, timing and taxes held fixed",
    "not_a_claim": "The same legal lease can be freely relabeled, or Microsoft's existing leases were retroactively reclassified"
  },
  "forecast_boundary": {
    "P1_definition": "Operating cash flow minus cash purchases of PP&E, excluding finance-lease principal",
    "june_baseline_usd_millions": 6709,
    "status": "Unchanged; September combined result remains unresolved pending the other three companies",
    "supplemental_metric": "Selected residual after finance-lease principal is displayed separately, not substituted into P1 scoring"
  }
}