XML 43 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Commitments
6 Months Ended
Nov. 30, 2017
Commitments [Abstract]  
Commitments

(7) Commitments

As of November 30, 2017, our purchase commitments under various contracts for the remainder of 2018 and annually thereafter were as follows (in millions):

 

 

 

Aircraft and

Aircraft-Related

 

 

Other(1)

 

 

Total

 

2018 (remainder)

 

$

870

 

 

$

469

 

 

$

1,339

 

2019

 

 

1,723

 

 

 

679

 

 

 

2,402

 

2020

 

 

1,965

 

 

 

525

 

 

 

2,490

 

2021

 

 

1,488

 

 

 

386

 

 

 

1,874

 

2022

 

 

1,451

 

 

 

235

 

 

 

1,686

 

Thereafter

 

 

3,334

 

 

 

499

 

 

 

3,833

 

Total

 

$

10,831

 

 

$

2,793

 

 

$

13,624

 

 

 

(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 November 30, 2017, our obligation to purchase four Boeing 767-300 Freighter (“B767F”) aircraft and six Boeing 777 Freighter (“B777F”) 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 second quarter of 2018, FedEx Express entered into an agreement to purchase 50 Cessna SkyCourier 408 aircraft with options to purchase up to 50 additional Cessna SkyCourier 408 aircraft. The 50 firm-order Cessna SkyCourier 408 aircraft are expected to be delivered from fiscal 2021 through 2024.

During the second quarter of 2018, FedEx Express entered into an agreement to purchase 30 ATR 72-600F aircraft with options to purchase up to 20 additional ATR 72-600F aircraft. The 30 firm-order ATR 72-600F aircraft are expected to be delivered from fiscal 2021 through 2026.

We had $684 million in deposits and progress payments as of November 30, 2017 on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our 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 November 30, 2017 with the year of expected delivery:

 

 

 

Cessna SkyCourier 408

 

 

ATR 72-600F

 

 

B767F

 

 

B777F

 

 

Total

 

2018 (remainder)

 

 

-

 

 

 

-

 

 

 

8

 

 

 

1

 

 

 

9

 

2019

 

 

-

 

 

 

-

 

 

 

15

 

 

 

2

 

 

 

17

 

2020

 

 

-

 

 

 

-

 

 

 

16

 

 

 

3

 

 

 

19

 

2021

 

 

12

 

 

 

5

 

 

 

10

 

 

 

3

 

 

 

30

 

2022

 

 

12

 

 

 

6

 

 

 

10

 

 

 

4

 

 

 

32

 

Thereafter

 

 

26

 

 

 

19

 

 

 

6

 

 

 

-

 

 

 

51

 

Total

 

 

50

 

 

 

30

 

 

 

65

 

 

 

13

 

 

 

158

 

 

A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at November 30, 2017 is as follows (in millions):

 

 

 

Aircraft

and Related

Equipment

 

 

Facilities

and Other

 

 

Total

Operating

Leases

 

2018 (remainder)

 

$

335

 

 

$

1,113

 

 

$

1,448

 

2019

 

 

343

 

 

 

2,014

 

 

 

2,357

 

2020

 

 

261

 

 

 

1,799

 

 

 

2,060

 

2021

 

 

203

 

 

 

1,623

 

 

 

1,826

 

2022

 

 

185

 

 

 

1,464

 

 

 

1,649

 

Thereafter

 

 

175

 

 

 

8,746

 

 

 

8,921

 

Total

 

$

1,502

 

 

$

16,759

 

 

$

18,261

 

 

Future minimum lease payments under capital leases were immaterial at November 30, 2017. 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.