Commitments and Contingencies

12 Months Ended

May. 31, 2015

11. Commitments and Contingencies

On October 3, 2003, we entered into a sale-leaseback transaction whereby we sold and leased back a facility located in Garden City, New York. The lease is classified as an operating lease. Net proceeds from the sale of the facility were $14.0 million and the cost and related accumulated depreciation of the facility of $9.5 million and $4.6 million, respectively, were removed from the Consolidated Balance Sheet at the time of sale. The gain realized on the sale of $9.1 million has been deferred and is being amortized over the 20-year lease term. As of May 31, 2015 and 2014, the unamortized balance of the deferred gain was approximately $3.8 million and $4.3 million, respectively, and is included in Other liabilities and deferred income on the Consolidated Balance Sheet.

In May 2015, we entered into a sale-leaseback transaction related to our two S-92 rotary-wing aircraft. The proceeds of $40.3 million have been deferred as a sales-leaseback advance pending completion of the sale transaction. The lease is classified as an operating lease and has a term of two years.

In addition to the leases described above, we lease other facilities and equipment under agreements that are classified as operating leases that expire at various dates through 2034. Future minimum payments under all operating leases at May 31, 2015 are as follows:

Year	Facilities and Equipment
2016	$	19.7
2017		15.6
2018		11.3
2019		9.9
2020		9.4
2021 and thereafter		38.0

Rental expense for facilities and equipment during fiscal years 2015, 2014, and 2013 was $33.3 million, $30.6 million, and $30.0 million, respectively.

We enter into purchase obligations which arise in the ordinary course of business and represent a binding commitment to acquire inventory, including raw materials, parts and components, as well as equipment to support the operations of our business. The aggregate amount of purchase obligations due in each of the next five fiscal years is $222.6 million in 2016, $15.2 million in 2017, $4.1 million in 2018 and $0.1 in 2019 and 2020.

We routinely issue letters of credit and performance bonds in the ordinary course of our business. These instruments are typically issued in conjunction with insurance contracts or other business requirements. The total of these instruments outstanding at May 31, 2015 was approximately $15.4 million.

We are involved in various claims and legal actions, including environmental matters, arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our consolidated financial condition or results of operations.