United States DEPARTMENT of Commerce

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Note 15. Liabilities Not Covered by Budgetary Resources
FY 2007 FY 2006
Intragovernmental
Debt to Treasury $ 164,489 $ -
Accrued FECA Liability 32,008 30,954
Other 1,232 2,501
Total Intragovernmental 197,729 33,455
Accrued Payroll 28,896 23,584
Accrued Annual Leave 214,415 201,612
Federal Employee Benefits 625,816 589,964
Environmental and Disposal Liabilities 67,443 74,880
Contingent Liabilities 8,717 13,063
Unearned Revenue 795,468 762,463
ITA Foreign Service Nationals’ Voluntary Separation Pay 9,550 9,436
Other 983 1,137
Total $ 1,949,017 $ 1,709,594
Due to USPTO’s funding structure, budgetary resources do not cover a portion of its Unearned Revenue. The Unearned Revenue
reported above is the portion of USPTO’s Unearned Revenue that is considered not covered by budgetary resources. USPTO’s
Unearned Revenue is a liability for revenue received before the patent or trademark work has been completed. Budgetary resources
derived from the current reporting period’s revenue have been partially used to cover the current reporting period’s costs associated
with unearned revenue from a prior reporting period. In addition, the current patent fee structure sets low initial application fees
that are followed by income from maintenance fees as a supplement in later years to cover the full cost of the patent examination
and issuance processes. The combination of these funding circumstances requires USPTO to obtain additional budgetary resources
to cover its liability for unearned revenue.
F Y 2 0 0 7 P E R F O R M A N C E A N D A C C O U N T A B I L I T Y R E P O R T
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