Commitments

3 Months Ended

Aug. 31, 2023

(8) Commitments

As of August 31, 2023, our purchase commitments under various contracts for the remainder of 2024 and annually thereafter were as follows (in millions):


	Aircraft and Aircraft Related		Other(1)		Total
2024 (remainder)	$	1,162	$	505	$	1,667
2025		1,565		606		2,171
2026		591		492		1,083
2027		290		221		511
2028		263		129		392
Thereafter		1,654		88		1,742
Total	$	5,525	$	2,041	$	7,566

(1)

Primarily information technology 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 August 31, 2023, we had $685 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 August 31, 2023 with the year of expected delivery:


	Cessna SkyCourier 408		ATR 72-600F		B767F		B777F		Total
2024 (remainder)		12		8		8		2		30
2025		12		6		10		2		30
2026		14		1		2		—		17
2027		—		—		—		—		—
2028		—		—		—		—		—
Thereafter		—		—		—		—		—
Total		38		15		20		4		77

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 August 31, 2023 is as follows (in millions):


	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2024 (remainder)	$	89		$	2,101		$	2,190		$	310		$	2,500
2025		112			2,796			2,908			38			2,946
2026		110			2,511			2,621			30			2,651
2027		109			2,204			2,313			22			2,335
2028		109			1,889			1,998			21			2,019
Thereafter		236			8,623			8,859			648			9,507
Total lease payments		765			20,124			20,889			1,069			21,958
Less imputed interest		(88	)		(3,081	)		(3,169	)		(339	)		(3,508	)
Present value of lease liability	$	677		$	17,043		$	17,720		$	730		$	18,450

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 August 31, 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 $1.8 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2024 to 2027.