Commitments

12 Months Ended

May 31, 2023

Commitments

Commitments

12. Commitments

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 $406.1 million in 2024, $93.4 million in 2025, $34.6 million in 2026, $4.8 million in 2027 and none in 2028.

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, 2023 was approximately $22.7 million which includes $12.9 million related to a guarantee of 40% of the outstanding debt of our Indian joint venture. We have recognized a current liability of $9.6 million based on the fair value of our guarantee obligation.