COMMITMENTS

3 Months Ended

Aug. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

NOTE 8: COMMITMENTS

As of August 31, 2025, our purchase commitments under various contracts for the remainder of 2026 and annually thereafter were as follows (in millions):


	Aircraft and Aircraft Related		Other(1)		Total
2026 (remainder)	$	808	$	626	$	1,434
2027	1,119		712		1,831
2028	993		545		1,538
2029	413		461		874
2030	205		35		240
Thereafter	1,073		90		1,163
Total	$	4,611	$	2,469	$	7,080

(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, 2025, we had $528 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 the accompanying unaudited condensed consolidated balance sheets. Aircraft and aircraft-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, 2025, with the year of expected delivery:


	Cessna SkyCourier 408	ATR 72-600F	B767F	B777F	Total
2026 (remainder)	15	3	6	—	24
2027	4	4	—	5	13
2028	—	4	—	5	9
2029	—	4	—	—	4
2030	—	2	—	—	2
Thereafter	—	—	—	—	—
Total	19	17	6	10	52

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, 2025 is as follows (in millions):


	Aircraft and Related Equipment		Facilities and Other		Total Operating Leases		Finance Leases		Total Leases
2026 (remainder)	$	95	$	2,237	$	2,332	$	85	$	2,417
2027	124		2,917		3,041		116		3,157
2028	124		2,539		2,663		115		2,778
2029	117		2,143		2,260		112		2,372
2030	47		1,795		1,842		95		1,937
Thereafter	91		7,995		8,086		619		8,705
Total lease payments	598		19,626		20,224		1,142		21,366
Less imputed interest	(62)		(3,430)		(3,492)		(347)		(3,839)
Present value of lease liability	$	536	$	16,196	$	16,732	$	795	$	17,527

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, 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 $1 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from calendar years 2025 to 2026.