Commitments and Contingencies	12 Months Ended
May 31, 2020
Commitments and Contingencies
Commitments and Contingencies	12. Commitments and Contingencies 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 $344.8 million in 2021, $15.8 million in 2022, $5.4 million in 2023, $0.1 in 2024 and $0.1 million in 2025. 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, 2020 was approximately $31.5 million which includes $12.4 million related to a guarantee of 40% of the outstanding debt of our Indian joint venture. We have recognized a current liability of $8.2 million based on the fair value of our guarantee obligation. 12. Commitments and Contingencies (Continued) 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. Government Actions to Mitigate COVID-19’s Impact On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the U.S. in response to the COVID-19 pandemic. The CARES Act includes provisions relating to refundable payroll tax credits, deferral of the employer portion of certain payroll taxes, net operating loss carrybacks, and other areas. The payroll tax deferral requires that the deferred payroll taxes be paid over two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022. During the fourth quarter of fiscal 2020, we deferred $2.5 million of payroll taxes which are included in Other liabilities on our Consolidated Balance Sheet. Certain subsidiaries of the Company expect to receive $57.2 million from the U.S. Treasury Department through the Payroll Support Program under the CARES Act. These funds will be used exclusively for the continuation of payment of employee wages, salaries and benefits for employees of those subsidiaries. Of the $57.2 million total amount expected to be received, approximately $48.5 million will be a direct grant and approximately $8.7 million will be in the form of a low interest 10-year senior unsecured promissory note. We expect that certain corporate restrictions will apply to us and those subsidiaries for approximately the next two years including restrictions on dividends, stock repurchases, employee compensation, and certain workforce actions. Other countries have enacted similar legislation to provide relief and stimulus measures to assist companies in mitigating the financial impact from COVID-19 and supporting their employees. During the fourth quarter of fiscal 2020, our foreign subsidiaries recognized employment subsidies of $2.8 million from foreign governments which have been deducted from the related expenses on our Consolidated Statement of Income.

Commitments and Contingencies

12 Months Ended

May 31, 2020

12. Commitments and Contingencies

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 $344.8 million in 2021, $15.8 million in 2022, $5.4 million in 2023, $0.1 in 2024 and $0.1 million in 2025.

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, 2020 was approximately $31.5 million which includes $12.4 million related to a guarantee of 40% of the outstanding debt of our Indian joint venture. We have recognized a current liability of $8.2 million based on the fair value of our guarantee obligation.

12. Commitments and Contingencies (Continued)

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.

Government Actions to Mitigate COVID-19’s Impact

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the U.S. in response to the COVID-19 pandemic. The CARES Act includes provisions relating to refundable payroll tax credits, deferral of the employer portion of certain payroll taxes, net operating loss carrybacks, and other areas. The payroll tax deferral requires that the deferred payroll taxes be paid over two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022. During the fourth quarter of fiscal 2020, we deferred $2.5 million of payroll taxes which are included in Other liabilities on our Consolidated Balance Sheet.

Certain subsidiaries of the Company expect to receive $57.2 million from the U.S. Treasury Department through the Payroll Support Program under the CARES Act. These funds will be used exclusively for the continuation of payment of employee wages, salaries and benefits for employees of those subsidiaries. Of the $57.2 million total amount expected to be received, approximately $48.5 million will be a direct grant and approximately $8.7 million will be in the form of a low interest 10-year senior unsecured promissory note. We expect that certain corporate restrictions will apply to us and those subsidiaries for approximately the next two years including restrictions on dividends, stock repurchases, employee compensation, and certain workforce actions.

Other countries have enacted similar legislation to provide relief and stimulus measures to assist companies in mitigating the financial impact from COVID-19 and supporting their employees. During the fourth quarter of fiscal 2020, our foreign subsidiaries recognized employment subsidies of $2.8 million from foreign governments which have been deducted from the related expenses on our Consolidated Statement of Income.