U.S. Department of State Fiscal Year 2019 Agency Financial Report

other U.S. Government agencies. Generally, amounts to be paid under any decision, settlement, or award pertaining to these legal matters are funded from the Judgment Fund. Payments made by the Judgement Fund for cases covered under the Contract Disputes Act on behalf of the Department totaled $63 million in 2019. No payments were made by the Fund on behalf of the Department in 2018. As a part of our continuing evaluation of estimates required for the preparation of our financial statements, we recognize settlements of claims and lawsuits and revised other estimates in our contingent liabilities. Management and the Legal Advisor believe we have made adequate provision for the amounts that may become due under the suits, claims, and proceedings we have discussed here. In addition, the Department is responsible for environmental cleanup costs associated with asbestos and lead based paint. A liability is recognized for those costs that are both probable and reasonably estimable (see Note 8, Other Liabilities , for additional information). The following tables show each type of contingency, the likelihood of future events occurring, and the potential estimable range of losses at September 30, 2019 and 2018 (dollars in millions) . 2019 Accrued Liabilities Estimated Range of Loss Lower End Upper End Legal Contingencies: Probable $ 25 $ 25 $ 795 Reasonably Possible $ — $ — $ 60 Environmental Contingencies: Probable $ 54 $ 54 $ 54 Reasonably Possible $ — $ — $ — 2018 Accrued Liabilities Estimated Range of Loss Lower End Upper End Legal Contingencies: Probable $ 8 $ 8 $ 8 Reasonably Possible $ — $ 6 $ 793 Environmental Contingencies: Probable $ 96 $ 96 $ 96 Reasonably Possible $ — $ — $ — Commitments In addition to the future lease commitments discussed in Note 11, Leases , the Department is committed under obligations for goods and services which have been ordered but not yet received at fiscal year end; these are termed undelivered orders (see Note 15, Statement of Budgetary Resources ). Rewards Programs: Under 22 U.S.C. 2708, the Department has the authority to operate rewards programs that are critical to combating international terrorism, narcotics trafficking, war crimes, and transnational organized crime. The Rewards for Justice Program offers rewards for information leading to the arrest or conviction in any country of persons responsible for acts of international terrorism against U.S. persons or property, or to the location of key terrorist leaders. See further details at www.rewardsforjustice.net . The Narcotics Rewards Program has the authority to offer rewards for information leading to the arrest or conviction in any country of persons committing major foreign violations of U.S. narcotics laws or the killing or kidnapping of U.S. narcotics law enforcement officers or their family members. The War Crimes Rewards Program offers rewards for information leading to the arrest, transfer, or conviction of persons indicted by a judge of the International Criminal Tribunal for the former Yugoslavia, the International Criminal Tribunal for Rwanda, or the Special Court of Sierra Leone for serious violations of international humanitarian law. The Transnational Organized Crime Rewards Program offers rewards for information leading to the arrest or conviction of significant members of transnational criminal organizations involved in activities that threaten national security, such as human trafficking, and trafficking in arms or other illicit goods. Pending reward offers under the four programs total $1.1 billion. Under the programs, we have paid out $314 million since 2003. Reward payments are funded from Diplomatic and Consular Programs prior year expired, unobligated balances using available transfer authorities as necessary. Management and the Legal Advisor believe there is adequate funding for the amounts that may become due under the Rewards Program. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 93 NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS | FINANCIAL SECTION