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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 $423,310 thousand and $281,995 thousand
as of September 30, 2006 and 2005, respectively. Of these amounts, $418,995
thousand and $273,635 thousand, respectively, were unpaid.
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.
One grievance has been decided by arbitration where the employee has
been reinstated and is being awarded backpay. Although the final liability
is unknown, a reserve of $250 thousand has been setup. As of September
30, 2006, management expects it is reasonably possible that approximately
$67,821 thousand may be owed for awards or damages involving labor relations
claims. In addition, a potential class action suit outcome is considered
reasonably possible, but a range of outcomes cannot be determined.
Additionally, the USPTO may be required to make reimbursements to the
Judgment Fund. For the years ended September 30, 2006 and 2005, there
were no payments made on behalf of the USPTO from the Judgment Fund.
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