NOTE 14. Commitments and Contingencies
Commitments
In addition to the future lease commitments discussed in Note 8, the USPTO is obligated for the purchase of goods and services that have been ordered, but not yet received. Total undelivered orders for all of the USPTO’s activities were $281,995 thousand and $214,546 thousand as of September 30, 2005 and 2004, respectively. Of these amounts, $273,635 thousand and $203,014 thousand, respectively, were unpaid.
Contingencies
The USPTO is a party to various routine administrative proceedings, legal actions, and claims brought by or against it, including threatened or pending litigation involving labor relations claims, some of which may ultimately result in settlements or decisions against the federal government. As of September 30, 2005, management expects it is reasonably possible that three cases involving employment or labor relations claims may ultimately result in an adverse decision and require payment of awards or damages where the outcomes are expected to be less than $825 thousand. In addition, a discrimination class action suit outcome is considered reasonably possible, but a range of outcomes cannot be determined. In September 2005, a grievance was ruled in favor of a terminated employee. The employee has returned to work. The USPTO will be liable for lost wages offset by outside earnings. Information is not available to prepare an estimate, however the liability will not exceed $350 thousand.
Additionally, the USPTO may be required to make contributions to the Judgment Fund. For the years ended September 30, 2005 and 2004, there were no payments made on the USPTO’s behalf from the Judgment Fund.
