Commitments and Contingencies Commitments The Company signed long-term purchase agreements with certain software, hardware, telecommunication and other service providers to obtain favorable pricing and terms for services and products that are necessary for the operations of business activities. Under the terms of these agreements, the Company is contractually committed to purchase specified minimums over periods ranging from one to seven years . If the specified minimums are not met, the Company would have an obligation to pay the service provider all or a portion of the shortfall. Minimum purchase commitments as of July 1, 2016 were $317 million for fiscal 2017 , $343 million for fiscal 2018 and $1.2 billion for fiscal 2019 and thereafter. In the normal course of business, the Company may provide certain clients with financial performance guarantees, which are generally backed by letters of credit or surety bonds. In general, CSC would only be liable for the amounts of these guarantees in the event that its nonperformance permits termination of the related contract by the Companys client. The Company believes it is in compliance with its performance obligations under all service contracts for which there is a financial performance guarantee and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse effect on its consolidated results of operations or financial position. The Company also uses stand-by letters of credit, in lieu of cash, to support various risk management insurance policies. These letters of credit represent a contingent liability and the Company would only be liable if it defaults on its payment obligations towards these policies. Generally, such guarantees have a one -year term and are renewed annually. The following table summarizes the expiration of the Companys financial guarantees and stand-by letters of credit outstanding as of July 1, 2016 : (in millions) Fiscal 2017 Fiscal 2018 Fiscal 2019 and thereafter Total Surety bonds $ 21 $  $