DEBT, COMMITMENTS, CONTINGENCIES AND GUARANTEES

We lease facilities under operating leases that include renewal and escalation clauses. Rent expense is recorded on a straight-line basis over the lease term. Total rent expense was $53.9 million, $58.5 million, and $56.4 million for Fiscal Years 2017, 2016, and 2015, respectively. Future minimum debt obligations, lease payments under non-cancelable leases, and purchase commitments due as of June 30, 2017 are as follows (excluding future potential payments in connection with acquisitions - see Note 3):



(dollars in millions)	FY 2018		FY 2019		FY 2020		FY 2021		FY 2022		Thereafter		Total
Debt obligations (principal)	$	28.4	$	21.7	$	31.8	$	589.6	$	—	$	—	$	671.5
Operating leases	44.1		36.5		28.9		21.8		19.3		81.8		232.4
Purchase commitments*	129.6		39.4		19.7		12.4		1.1		0.2		202.4
Total	$	202.1	$	97.6	$	80.4	$	623.8	$	20.4	$	82.0	$	1,106.3

*includes commitments to purchase software, hardware and services

We have letter-of-credit agreements with banks, totaling approximately $9.5 million, guaranteeing performance under various operating leases and vendor agreements. Additionally, the borrowings under the 2016 Credit Agreement and the Notes are guaranteed by certain of our U.S. subsidiaries.

We periodically become involved in various claims and lawsuits that are incidental to our business. We are also regularly subject to, and are currently undergoing, audits by tax authorities in the United States and foreign jurisdictions for prior tax years relating to indirect taxes. Although we believe our accruals for non-income tax related tax exposures to be appropriately estimated, and we intend to defend our positions through litigation if necessary, the final outcome of tax audits and related litigation is inherently uncertain and could be materially different than that reflected in our accruals. Adverse outcomes of tax audits could also result in assessments of substantial additional taxes and/or fines or penalties relating to ongoing or future audits. For indirect tax-related matters we estimate our reasonably possible loss in excess of amounts accrued as probable and estimable to be up to approximately $9.2 million at June 30, 2017.

In connection with the pending acquisition of the Company by certain investments funds affiliated with Pamplona Capital Management, pursuant to the Agreement and Plan of Merger, several lawsuits were filed by shareholders of PAREXEL against the Company. The Company believes that the claims asserted against them are without merit and intend to vigorously defend against these lawsuits.

If the merger is not completed within the expected time frame or at all, we may be subject to a number of material risks. The price of our common stock may decline to the extent that current market prices reflect a market assumption that the merger will be completed. We could be required to reimburse certain expenses of Parent or pay Parent a termination fee of $138 million if the merger agreement is terminated under specific circumstances described in the merger agreement.

The above table does not include asset retirement obligations due to the uncertainty of the timing of the future cash outflows related to the restoration costs associated with returning certain facilities to their original condition upon termination of our long-term leases. As of June 30, 2017, the obligation expected to be incurred is $3.8 million.

The above table does not include contingent consideration due to the uncertainty regarding the amounts and timing of the future cash outflows related to the potential payments. As of June 30, 2017, we recorded contingent consideration liabilities of $18.0 million. See Note 13 to our consolidated financial statements included in this annual report for more information.

We believe, after consultation with counsel or other experts, that no matters currently pending would, in the event of an adverse outcome, either individually or in the aggregate, have a material impact on our consolidated financial position, results of operations, or liquidity.