The Revenue Forgone Reform Act of 1993 authorized a total of $1,218 million in payments. We calculated the present value of these future reimbursements, at 7% interest, to be approximately $390 million. We recognized the $390 million as revenue during fiscal years 1991 through 1998. The amounts receivable as of September 30, 2004 and 2003, were $364 million and $367 million, respectively.

Note 9 - commitments

At September 30, 2004, we estimate our financial commitment for approved capital projects in progress to be approximately $2,808 million.

Our total rental expense for the years ended September 30 is summarized as follows:

At September 30, 2004, our future minimum lease payments for all non-cancellable leases are as follows:

Most of these leases contain renewal options for periods ranging from 3 to 20 years. Certain non-cancellable real estate leases give us the option to purchase the facilities at prices specified in the leases.

Capital leases included in buildings were $847 million in 2004 and $963 million in 2003. Total accumulated amortization is $259 million in 2004 and $259 million in 2003. Amortization expense for assets recorded under capital leases is included in depreciation expense.

Note 10 - contingent liabilities

Each quarter we review litigation pending against us. As a result of this review, we classify and adjust our contingencies for claims that we think it is probable that we will pay and for which we can reasonably estimate the amount of the unfavorable outcome.

These claims cover labor, equal employment opportunity, environmental issues, traffic accidents, injuries on postal properties, personal claims and property damages and suits and claims arising from postal contracts. We also recognize the settlements of claims and lawsuits and revisions of other estimates. Additionally, we evaluate the materiality of cases determined to have a reasonably possible chance of adverse outcome. Such cases are immaterial to our financial statements taken as a whole.