Commitments

6 Months Ended

Nov. 30, 2022

(8) Commitments

As of November 30, 2022, our purchase commitments under various contracts for the remainder of 2023 and annually thereafter were as follows (in millions):


	Aircraft and Related		Other(1)		Total
2023 (remainder)	$	957	$	465	$	1,422
2024		1,990		744		2,734
2025		1,436		529		1,965
2026		396		451		847
2027		302		180		482
Thereafter		1,925		141		2,066
Total	$	7,006	$	2,510	$	9,516

(1)

Primarily equipment 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 November 30, 2022, we had $770 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, 2022 with the year of expected delivery:


	Cessna SkyCourier 408		ATR 72-600F		B767F		B777F		Total
2023 (remainder)		7		7		5		—		19
2024		12		6		14		4		36
2025		12		6		10		2		30
2026		14		1		—		—		15
2027		—		—		—		—		—
Thereafter		—		—		—		—		—
Total		45		20		29		6		100

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, 2022 is as follows (in millions):


	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2023 (remainder)	$	86		$	1,349		$	1,435		$	98		$	1,533
2024		107			2,762			2,869			79			2,948
2025		82			2,484			2,566			31			2,597
2026		79			2,210			2,289			30			2,319
2027		79			1,944			2,023			21			2,044
Thereafter		166			9,198			9,364			669			10,033
Total lease payments		599			19,947			20,546			928			21,474
Less imputed interest		(44	)		(2,714	)		(2,758	)		(348	)		(3,106	)
Present value of lease liability	$	555		$	17,233		$	17,788		$	580		$	18,368

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, 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 $2.8 billion that will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2023 to 2024.