XML 34 R19.htm IDEA: XBRL DOCUMENT v3.24.4
Commitments
 6 Months Ended
Nov. 30, 2024
Commitments [Abstract]  
Commitments

NOTE 8: Commitments

As of November 30, 2024, our purchase commitments under various contracts for the remainder of 2025 and annually thereafter were as follows (in millions):

 

 

Aircraft and Aircraft Related

 

 

Other(1)

 

 

Total

 

2025 (remainder)

 

$

1,041

 

 

$

297

 

 

$

1,338

 

2026

 

 

714

 

 

 

807

 

 

 

1,521

 

2027

 

 

257

 

 

 

556

 

 

 

813

 

2028

 

 

295

 

 

 

400

 

 

 

695

 

2029

 

 

310

 

 

 

328

 

 

 

638

 

Thereafter

 

 

1,226

 

 

 

100

 

 

 

1,326

 

Total

 

$

3,843

 

 

$

2,488

 

 

$

6,331

 

(1) Primarily software and advertising.

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 November 30, 2024, we had $462 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 November 30, 2024 with the year of expected delivery:

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2025 (remainder)

 

 

12

 

 

 

2

 

 

 

8

 

 

 

2

 

 

 

24

 

2026

 

 

14

 

 

 

5

 

 

 

3

 

 

 

—

 

 

 

22

 

2027

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

2028

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

2029

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Thereafter

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

 

26

 

 

 

7

 

 

 

11

 

 

 

2

 

 

 

46

 

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 November 30, 2024 is as follows (in millions):

 

 

Aircraft
and Related
Equipment

 

 

Facilities
and Other

 

 

Total
Operating
Leases

 

 

Finance Leases

 

 

Total Leases

 

2025 (remainder)

 

$

63

 

 

$

1,425

 

 

$

1,488

 

 

$

16

 

 

$

1,504

 

2026

 

 

124

 

 

 

2,961

 

 

 

3,085

 

 

 

29

 

 

 

3,114

 

2027

 

 

124

 

 

 

2,618

 

 

 

2,742

 

 

 

22

 

 

 

2,764

 

2028

 

 

124

 

 

 

2,279

 

 

 

2,403

 

 

 

21

 

 

 

2,424

 

2029

 

 

117

 

 

 

1,911

 

 

 

2,028

 

 

 

19

 

 

 

2,047

 

Thereafter

 

 

138

 

 

 

9,033

 

 

 

9,171

 

 

 

629

 

 

 

9,800

 

Total lease payments

 

 

690

 

 

 

20,227

 

 

 

20,917

 

 

 

736

 

 

 

21,653

 

Less imputed interest

 

 

(78

)

 

 

(3,590

)

 

 

(3,668

)

 

 

(316

)

 

 

(3,984

)

Present value of lease liability

 

$

612

 

 

$

16,637

 

 

$

17,249

 

 

$

420

 

 

$

17,669

 

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 November 30, 2024, 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 $0.9 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2025 to 2027.