Commitments

6 Months Ended

Nov. 30, 2023

(8) Commitments

As of November 30, 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)	$	485	$	333	$	818
2025		1,626		659		2,285
2026		591		498		1,089
2027		290		226		516
2028		264		138		402
Thereafter		1,646		85		1,731
Total	$	4,902	$	1,939	$	6,841

(1)

Primarily information technology 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, 2023, we had $576 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, 2023 with the year of expected delivery:


	Cessna SkyCourier 408		ATR 72-600F		B767F		B777F		Total
2024 (remainder)		9		5		5		—		19
2025		12		8		10		2		32
2026		14		1		2		—		17
2027		—		—		—		—		—
2028		—		—		—		—		—
Thereafter		—		—		—		—		—
Total		35		14		17		2		68

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, 2023 is as follows (in millions):


	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2024 (remainder)	$	64		$	1,364		$	1,428		$	278		$	1,706
2025		118			2,912			3,030			38			3,068
2026		115			2,607			2,722			30			2,752
2027		114			2,306			2,420			22			2,442
2028		114			1,983			2,097			21			2,118
Thereafter		243			8,867			9,110			649			9,759
Total lease payments		768			20,039			20,807			1,038			21,845
Less imputed interest		(96	)		(3,056	)		(3,152	)		(332	)		(3,484	)
Present value of lease liability	$	672		$	16,983		$	17,655		$	706		$	18,361

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, 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 $1.7 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2024 to 2027.