123 NOTES TO THE FINANCIAL STATEMENTS

Note 19. Commitments

Long-Term Operating Leases as of September 30, 2018, and 2017

(In billions of dollars) 2018 2017

General Services Administration ................................................................. 21.6 22.4

U.S. Postal Service.................................................................................... 3.5 7.6

Department of State................................................................................... 1.4 1.6

Department of Defense .............................................................................. 0.9 1.0

Department of Health and Human Services ................................................. 0.8 1.0

Other operating leases ............................................................................... 3.9 3.5

Total long-term operating leases ............................................................. 32.1 37.1

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

significant amounts of long-term lease obligations.

Undelivered Orders and Other Commitments as of September 30, 2018, and 2017

Restated

(In billions of dollars) 2018 2017

Undelivered Orders:

Department of Defense.............................................................................. 319.8 263.8

Security Assistance Accounts..................................................................... 168.4 140.8

Department of Education............................................................................ 132.7 128.1

Department of Health and Human Services................................................. 122.7 114.2

Department of Transportation..................................................................... 110.5 103.7

Department of Agriculture .......................................................................... 58.3 62.0

Department of Housing and Urban Development ......................................... 48.9 39.1

Department of Homeland Security .............................................................. 42.3 37.9

Department of Energy................................................................................ 27.0 22.8

Department of State................................................................................... 24.0 21.8

U.S. Agency for International Development ................................................. 17.4 17.9

All other entities......................................................................................... 126.6 126.0

Total undelivered orders .......................................................................... 1,198.6 1,078.1

Other Commitments:

GSE Senior Preferred Stock Purchase Agreements..................................... 254.1 258.1

U.S. Participation in the International Monetary Fund................................... 154.9 157.0

Callable Capital Subscriptions for Multilateral Development Banks................ 121.1 120.6

All other commitments ............................................................................... 22.4 30.0

Total other commitments ......................................................................... 552.5 565.7
NOTES TO THE FINANCIAL STATEMENTS 124

Undelivered Orders and Other Commitments 

Undelivered Orders

Undelivered orders represent the value of goods and services ordered that have not yet been received. As of September 

30, 2018, and 2017, DOD reported undelivered orders of $319.8 billion and $263.8 billion, respectively. The $56.0 billion 

increase primarily resulted from an increase in activity (available budgetary resources) and continued refinement of 

estimation methods used in the classification of non-federal undelivered orders. 

Certain amounts related to DOJ have been restated. Refer to Note 1.U—Restatements for more information.

GSE Senior Preferred Stock Purchase Agreements

At September 30, 2018 and 2017, the maximum remaining potential commitment to the GSEs for the remaining life of 

the SPSPAs was $254.1 billion and $258.1 billion, respectively, 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.

U.S. Participation in the International Monetary Fund

The government participates in the IMF through a quota subscription and certain borrowing arrangements that 

supplement IMF resources. As of September 30, 2018, and 2017, the financial commitment under the U.S. quota and 

borrowing arrangements was $154.9 billion and $157.0 billion, respectively. Refer to Note 2—Cash and Other Monetary 

Assets for more information regarding the U.S. participation in the IMF.

Callable Capital Subscriptions for Multilateral Development Banks

The government has callable subscriptions in certain 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. As of September 30, 2018, and 2017, the capital commitment to MDBs was $121.1 billion 

and $120.6 billion, respectively. 

All Other Commitments

Certain amounts related to Treasury have been restated. Refer to Note 1.U—Restatements for more information.

Other Risks

Terrorism Risk Insurance Program

Congress originally enacted the Terrorism Risk Insurance Act 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 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 2018 and 2017, the program trigger amount was $160.0 million and $140.0 million, respectively. This amount will 

increase by $20.0 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 

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, 2018 or 2017.
125 NOTES TO THE FINANCIAL STATEMENTS

U.S. Contributions to International Organizations

The U.S. government enters into agreements to pay future contributions to international organizations in which it 

participates as a member. These contributions may include financial and in-kind support, including assessed contributions, 

voluntary contributions, grants, and other assistance to international organizations. Following are examples of international

organizations and their underlying missions which are supported by U.S. contributions:

x Office of the United Nations High Commissioner for Refugees, which supports annual and supplementary appeals 

for Africa, East Asia, Europe, Near East, South Asia, and the Western Hemisphere, as well as protection activities, 

refugee resettlement, and the global HIV/AIDS initiative;

x International Committee of the Red Cross, which aids in annual emergency and budget extension appeals for Africa, 

East Asia, Europe, Near East, South Asia, and the Western Hemisphere to support protection and assistance for 

conflict-affected populations;

x International Organization for Migration, which supports migration programs and the U.S. Refugee Assistance 

Program;

x North Atlantic Treaty Organization, which promotes conflict prevention and peaceful resolution of disputes;

x United Nations, which enables the world’s nations to work together toward freedom, democracy, peace, and human

rights;

x World Food Program, which provides emergency nutrition programming;

x Global Environment Facility, which is a multilateral trust fund that provides grants for global environmental 

projects;

x Green Climate Fund, established to support the efforts of developing countries to respond to the challenge of climate 

change;

x United Nations Children’s Fund, which promotes humanitarian and developmental assistance to children and 

mothers in developing countries; and

x World Health Organization, which provides support for collaborative efforts in a wide range of health-related 

activities, including infectious diseases, maternal and child health, family planning, safe motherhood, newborn 

health, reproductive health, environmental health, and HIV/AIDS.