Commitments

9 Months Ended

Feb. 28, 2022

(8) Commitments

As of February 28, 2022, our purchase commitments under various contracts for the remainder of 2022 and annually thereafter were as follows (in millions):


	Aircraft and Related		Other(1)		Total
2022 (remainder)	$	242	$	287	$	529
2023		2,636		838		3,474
2024		1,929		614		2,543
2025		1,392		463		1,855
2026		423		391		814
Thereafter		2,271		268		2,539
Total	$	8,893	$	2,861	$	11,754

(1)

Primarily equipment and advertising contracts.

The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of February 28, 2022, our obligation to purchase two Boeing 777 Freighter (“B777F”) aircraft and two Boeing 767-300 Freighter (“B767F”) aircraft is conditioned upon there being no event that causes FedEx Express or its employees not to be covered by the Railway Labor Act of 1926, as amended. Open purchase orders that are cancelable are not considered unconditional purchase obligations for financial reporting purposes and are not included in the table above.

During the first quarter of 2022, FedEx Express exercised options to purchase an additional 20 B767F aircraft, ten of which will be delivered in 2024 and ten of which will be delivered in 2025.

As of February 28, 2022, we had $677 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, 2022 with the year of expected delivery:


	Cessna SkyCourier 408		ATR 72-600F		B767F		B777F		Total
2022 (remainder)		3		5		3		—		11
2023		12		6		13		2		33
2024		12		6		14		4		36
2025		12		6		10		2		30
2026		11		1		—		—		12
Thereafter		—		—		—		—		—
Total		50		24		40		8		122

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, 2022 is as follows (in millions):


	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2022 (remainder)	$	33		$	531		$	564		$	52		$	616
2023		200			2,674			2,874			35			2,909
2024		111			2,343			2,454			31			2,485
2025		80			2,078			2,158			27			2,185
2026		73			1,826			1,899			22			1,921
Thereafter		223			9,139			9,362			691			10,053
Total lease payments		720			18,591			19,311			858			20,169
Less imputed interest		(55	)		(2,411	)		(2,466	)		(357	)		(2,823	)
Present value of lease liability	$	665		$	16,180		$	16,845		$	501		$	17,346

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, 2022, 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 $2.6 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2022 to 2023.