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The unfunded liability was $0.7 million as of September 30, 2013 and 2012. The following table illustrates the changes in accumulated postretirement benefit obligation and the changes in fair value of assets of the postretirement benefit plan (in thousands): 

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If the medical care cost trend rate assumptions were increased or decreased by 1% as of September 30, 2013, the effect of this change on the accumulated postretirement benefit obligation and service and interest costs would be an increase of $138,709 and $24,151 or a decrease of $100,063 and $17,894, respectively. 

The components of net periodic postretirement benefit costs for the last three years are as follows: 

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<img src='content_image/286306.jpg'>

Future expected benefit payments as of September 30, 2013, related to postretirement benefits for the subsequent five years were as follows (in thousands): 

<img src='content_image/286300.jpg'>

## J. COMMITMENTS AND CONTINGENCIES 

## Long-Term Debt 

See Note G herein for a discussion of our long-term debt. 

## Leases 

We lease certain offices, facilities and equipment under operating leases expiring at various dates through 2023. 

At September 30, 2013, the minimum annual rental commitments under leases having terms in excess of one year were as follows (in thousands): 

<img src='content_image/286301.jpg'>

Lease expense for all operating leases was $6.0 million, $5.4 million and $3.7 million for Fiscal 2013, 2012 and 2011, respectively. The lease on our previous Canadian facility does not expire until July 2023, however, we have sublet that facility through July 2019. We recorded a $1.7 million loss in the fourth quarter of fiscal year 2013 for the net difference between our annual lease costs and the expected receipts from the anticipated sublease, as well as the write-off of leasehold improvements. 

