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Commitments
3 Months Ended
Aug. 31, 2013
Commitments [Abstract]  
Commitments

(4) Commitments

 

As of August 31, 2013, our purchase commitments under various contracts for the remainder of 2014 and annually thereafter were as follows (in millions):

  Aircraft and        
  Aircraft Related Other(1)  Total   
            
2014 (remainder)$ 828 $ 62 $ 890  
2015  1,121   31   1,152  
2016  1,083   28   1,111  
2017  891   22   913  
2018  1,475   19   1,494  
Thereafter  5,211   86   5,297  
Total$ 10,609 $ 248 $ 10,857  
            
(1) Primarily advertising and promotions contracts.

The amounts reflected in the table above for purchase commitments represent noncancelable agreements to purchase goods or services. As of August 31, 2013, our obligation to purchase four Boeing 767-300 Freighter (“B767F”) aircraft and nine Boeing 777 Freighter (“B777F”) aircraft is conditioned upon there being no event that causes us or our employees not to be covered by the Railway Labor Act of 1926, as amended. Commitments to purchase aircraft in passenger configuration do not include the attendant costs to modify these aircraft for cargo transport unless we have entered into noncancelable commitments to modify such aircraft.  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 2014, we entered into supplemental agreements to purchase the 16 Boeing 757 (“B757”) option aircraft pursuant to an agreement originally entered into in March 2013. Delivery of the aircraft will occur through 2015.

 

We had $416 million in deposits and progress payments as of August 31, 2013 on aircraft purchases and other planned aircraft-related transactions. These deposits are classified in the “Other assets” caption of our consolidated balance sheets. In addition to our commitment to purchase B777Fs and B767Fs, our aircraft purchase commitments include the B757 aircraft in passenger configuration, which will require additional costs to modify for cargo transport. 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, 2013 with the year of expected delivery:

  B757 B767F B777F Total 
          
2014 (remainder) 16  4  2  22 
2015 11  12  -  23 
2016 -  10  2  12 
2017 -  10  -  10 
2018 -  10  2  12 
Thereafter -  4  14  18 
Total 27  50  20  97 
          

A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at August 31, 2013 is as follows (in millions):
              
     Operating Leases 
     Aircraft    Total 
     and Related Facilities Operating 
     Equipment  and Other Leases 
              
2014 (remainder)  $ 416 $ 557 $ 973 
2015    448   715   1,163 
2016    453   579   1,032 
2017    391   762   1,153 
2018    326   454   780 
Thereafter    824   3,945   4,769 
Total  $ 2,858 $ 7,012 $ 9,870 

Future minimum lease payments under capital leases were immaterial at August 31, 2013. 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.