Commitments

9 Months Ended

Feb. 28, 2025

NOTE 9: Commitments

As of February 28, 2025, 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)	$	429	$	192	$	621
2026		925		800		1,725
2027		278		560		838
2028		587		395		982
2029		393		323		716
Thereafter		1,258		100		1,358
Total	$	3,870	$	2,370	$	6,240

(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 February 28, 2025, we had $594 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, 2025 with the year of expected delivery:


	Cessna SkyCourier 408		ATR 72-600F		B767F		B777F		Total
2025 (remainder)		5		1		2		2		10
2026		18		6		7		—		31
2027		—		—		—		—		—
2028		—		4		—		2		6
2029		—		4		—		—		4
Thereafter		—		2		—		—		2
Total		23		17		9		4		53

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, 2025 is as follows (in millions):


	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2025 (remainder)	$	32		$	603		$	635		$	13		$	648
2026		125			3,065			3,190			57			3,247
2027		124			2,684			2,808			56			2,864
2028		124			2,338			2,462			56			2,518
2029		117			1,959			2,076			53			2,129
Thereafter		138			9,179			9,317			655			9,972
Total lease payments		660			19,828			20,488			890			21,378
Less imputed interest		(73	)		(3,525	)		(3,598	)		(328	)		(3,926	)
Present value of lease liability	$	587		$	16,303		$	16,890		$	562		$	17,452

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, 2025, 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.

In March 2025, Federal Express exercised options to purchase eight B777F aircraft, three of which are expected to be delivered in calendar year 2026 and five of which are expected to be delivered in calendar year 2027.