NOTES TO THE FINANCIAL STATEMENTS 120

Note 19. Commitments

Long-Term Operating Leases as of September 30, 2017, and 2016

(In billions of dollars) 2017 2016

General Services Administration ................................................................. 22.4 23.1

U.S. Postal Service .................................................................................... 7.6 7.4

Department of State................................................................................... 1.6 1.6

Department of Health and Human Services ................................................. 1.0 1.0

Other operating leases ............................................................................... 4.5 5.1

Total long-term operating leases ............................................................. 37.1 38.2

The government has entered into contractual commitments that require future use of financial resources. It has

significant amounts of long-term lease obligations and undelivered orders. Undelivered orders represent the value of goods

and services ordered that have not yet been received.

The government has other commitments that may require future use of financial resources. For example, the

government has callable subscriptions in certain Multilateral Development Banks (MDBs), which are international financial

institutions that finance economic and social development projects in developing countries. Callable capital in the MDBs

serves as a supplemental pool of resources that may be redeemed and converted into ordinary paid in shares, if the MDB

cannot otherwise meet certain obligations through its other available resources. MDBs are able to use callable capital as

backing to obtain favorable financing terms when borrowing from international capital markets. To date, there has never been

a call on this capital at any MDBs and none is anticipated.
121 NOTES TO THE FINANCIAL STATEMENTS 

Undelivered Orders and Other Commitments as of September 30, 2017, and 2016

(In billions of dollars) 2017 2016

Undelivered Orders:

Department of Defense............................................................................... 263.8 239.6

Defense Security Cooperation Agency......................................................... 140.8 130.0

Department of Education ............................................................................ 128.1 123.4

Department of Health and Human Services.................................................. 114.2 96.1

Department of Transportation...................................................................... 103.7 105.9

Department of Agriculture ........................................................................... 62.0 52.4

Department of Housing and Urban Development.......................................... 39.1 35.1

Department of Homeland Security ............................................................... 37.9 35.7

Department of Energy................................................................................. 22.8 22.2

Department of State ................................................................................... 21.8 21.6

Agency for International Development ......................................................... 17.9 17.6

All other agencies....................................................................................... 112.1 91.6

Total undelivered orders........................................................................... 1,064.2 971.2

Other Commitments:

GSE Senior Preferred Stock Purchase Agreements...................................... 258.1 258.1

U.S. Participation in the International Monetary Fund.................................... 157.0 155.1

Callable Capital Subscriptions for Multilateral Development Banks ................ 120.6 120.0

All other commitments ................................................................................ 19.2 16.7

Total other commitments .......................................................................... 554.9 549.9
 NOTES TO THE FINANCIAL STATEMENTS 122

Other Commitments and Risks

Undelivered Orders

 DOD reported undelivered orders of $263.8 billion and $239.6 billion as of September 30, 2017, and 2016, respectively.

The increase of $24.2 billion in fiscal year 2017 was primarily caused by increased estimates in non-federal undelivered

orders.

Commitments to GSEs

At September 30, 2017 and 2016, the maximum remaining potential commitment to the GSEs for the remaining life of

the SPSPAs was $258.1 billion, which was established on December 31, 2012. Refer to Note 8—Investments in

Government-Sponsored Enterprises for a full description of the SPSPAs related commitments and contingent liability, if any,

as well as additional information.

Terrorism Risk Insurance Program

Congress originally enacted the Terrorism Risk Insurance Act (TRIA) in November 2002 to address market disruptions

resulting from terrorist attacks on September 11, 2001. Most recently, the Terrorism Risk Insurance Program Reauthorization

Act of 2015 extended the Terrorism Risk Insurance Program (TRIP) until December 31, 2020. The TRIP helps to ensure

available and affordable commercial property and casualty insurance for terrorism risk, and simultaneously allows private

markets to stabilize. The authority to pay claims under the TRIP Program is activated when the Secretary of the Treasury (in

consultation with the Secretary of the U.S. Department of Homeland Security and the U.S. Attorney General) certifies an “act

of terrorism.” In the event of certification of an “act of terrorism” insurers may be eligible to receive reimbursement from the

U.S. government for associated insured losses assuming an aggregate insured loss threshold (“program trigger”) has been

reached once a particular insurer has satisfied its designated deductible amount. For calendar years 2017 and 2016, the

program trigger amount was $140 million and $120 million, respectively. This amount will increase by $20 million annually

through calendar year 2020. Insured losses above insurer deductibles will be shared between insurance companies and the

U.S. government. The TRIP includes both mandatory and discretionary authority for the Department of the Treasury to

recoup federal payments made under the TRIP through policyholder surcharges under certain circumstances, and contains

provisions designed to manage litigation arising from or relating to a certified act of terrorism. There were no claims under

the TRIP as of September 30, 2017 or 2016.