NOTE 11. COMMITMENTS AND CONTINGENCIES

The Company has obligations under various facilities, equipment leases and software license agreements. Minimum commitments under these obligations with a future life of greater than one year at June 30, 2016 are as follows:



Years ending June 30,

2017	$	106.2
2018	106.1
2019	78.9
2020	59.6
2021	39.5
Thereafter	100.8
	$	491.1

In addition to fixed rentals, certain leases require payment of maintenance and real estate taxes and contain escalation provisions based on future adjustments in price indices.

As of June 30, 2016, the Company has purchase commitments of approximately $625.2 million, including a reinsurance premium with Chubb for the fiscal 2017 policy year, as well as obligations related to purchase and maintenance agreements on our software, equipment, and other assets, of which $331.1 million relates to fiscal 2017, $111.3 million relates to the fiscal year ending June 30, 2018, and the remaining $182.8 million relates to fiscal years ending June 30, 2019 through fiscal 2021.

In July 2016, Uniloc USA, Inc. and Uniloc Luxembourg, S.A. (“Uniloc”) filed a lawsuit against the Company in the United States District Court for the Eastern District of Texas alleging that Company products and services infringe four patents. Uniloc alleges infringement of its patents concerning centralized management of application programs on a network, distribution of application programs to a target station on a network, management of configurable application programs on a network, and license use management on a network. The complaint seeks unspecified monetary damages, costs, and injunctive relief. This litigation is still in its earliest stages and the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter. The Company intends to vigorously defend against this lawsuit.

During the second quarter of fiscal 2016, in the course of a compliance review of its clients and vendors globally, the Company determined that subsidiaries of the Company had previously entered into service arrangements outside the United States of America ("U.S.") with several entities that are designated as Specially Designated Nationals (“SDNs”) by the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury. Under these service arrangements, the Company provided managed service solutions to the SDNs. Immediately following the discovery of such service arrangements, the Company terminated the service arrangements with each SDN. The Company has voluntarily notified OFAC of the service arrangements and is cooperating fully with OFAC. The Company may be subject to fines and penalties, which amounts would be based on such factors OFAC may consider relevant. At this time, the Company is unable to estimate any reasonably possible loss, or range of reasonably possible loss, with respect to this matter. This is primarily because this matter involves a complex issue subject to inherent uncertainty. There can be no assurance that this matter will be resolved in a manner that is not adverse to the Company. For more information regarding this matter, see below in Part II Item 9B, Other Information of this Annual Report on Form 10-K.

In June 2011, the Company received a Commissioner’s Charge from the U.S. Equal Employment Opportunity Commission (“EEOC”) alleging that the Company has violated Title VII of the Civil Rights Act of 1964 by refusing to recruit, hire, transfer and promote certain persons on the basis of their race, in the State of Illinois from at least the period of January 1, 2007 to the present. In July 2016, the Company entered into a settlement with the EEOC that resolved all matters related to the Commissioner’s Charge without admitting any of the EEOC’s allegations. The terms of the settlement did not have a material adverse impact on the Company's consolidated results of operations, financial condition, or cash flows.

The Company is subject to various claims and litigation in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims and litigation against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future.

It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties.