6. Fedexs CEO is routinely confronted with lease agreements that can be structured as either financing or operating leases. Explain how electing a financing lease rather than an operating lease affects the income statement and statement of cash flows throughout the lease.

7. In May 2021, FedEx Services was named as a defendant in a lawsuit filed in the U.S. District Court for the Southern District of Texas related to the termination of a former FedEx Services employee. The complaint alleged race discrimination and retaliation for complaints of discrimination under Section 1981 of the Civil Rights Act of 1866 and Title VII of the Civil Rights Act of 1964. The plaintiff is requesting compensatory and punitive damages of $375 million in the lawsuit.

You are meeting with the controller to determine whether and how to account for this lawsuit. What issues should you discuss in the meeting?