Commitments

9 Months Ended

Feb. 28, 2023

(8) Commitments

As of February 28, 2023, our purchase commitments under various contracts for the remainder of 2023 and annually thereafter were as follows (in millions):


	Aircraft and Related		Other(1)		Total
2023 (remainder)	$	271	$	228	$	499
2024		1,944		717		2,661
2025		1,565		550		2,115
2026		568		442		1,010
2027		296		172		468
Thereafter		1,913		139		2,052
Total	$	6,557	$	2,248	$	8,805

(1)

Primarily equipment and advertising contracts.

The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above.

As of February 28, 2023, we had $930 million in deposits and progress payments on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our accompanying unaudited condensed consolidated balance sheets. Aircraft and related contracts are subject to price escalations. The following table is a summary of the key aircraft we are committed to purchase as of February 28, 2023 with the year of expected delivery:


	Cessna SkyCourier 408		ATR 72-600F		B767F		B777F		Total
2023 (remainder)		5		4		3		—		12
2024		13		8		14		4		39
2025		12		6		10		2		30
2026		14		1		—		—		15
2027		—		—		—		—		—
Thereafter		—		—		—		—		—
Total		44		19		27		6		96

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year as of February 28, 2023 is as follows (in millions):


	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2023 (remainder)	$	34		$	570		$	604		$	34		$	638
2024		103			2,905			3,008			91			3,099
2025		84			2,600			2,684			38			2,722
2026		81			2,322			2,403			30			2,433
2027		80			2,046			2,126			22			2,148
Thereafter		170			9,790			9,960			669			10,629
Total lease payments		552			20,233			20,785			884			21,669
Less imputed interest		(43	)		(2,923	)		(2,966	)		(345	)		(3,311	)
Present value of lease liability	$	509		$	17,310		$	17,819		$	539		$	18,358

While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations.

As of February 28, 2023, FedEx has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases are generally for build-to-suit facilities and have undiscounted future payments of approximately $2.3 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2023 to 2024.