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): 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: 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. Future expected benefit payments as of September 30, 2013,  related to postretirement benefits for the subsequent five years were  as follows (in thousands): September 30, 2013 2012 Changes in postretirement benefit obligation: Balance at beginning of year  $ 689  $ 895 Service cost 66 23 Interest cost 23 17 Actuarial loss (gain) 20 (189) Benefits paid (59) (57) Balance at end of year $ 739 $  689 Change in plan assets: Fair value of assets at beginning of year $ —  $ — Employer contributions 59 57 Benefits paid (59) (57) Fair value of assets at end of year $ — $  — 2013 2012 Weighted-average assumptions used to  determine benefit obligations at September 30: Discount rate pre-retirement  0.00% 0.00% Discount rate post-retirement 4.26% 3.08% Current year trend rate 8.10% 8.40% Ultimate trend rate 5.00% 5.00% Year ultimate trend rate reached 2023 2023 Year Ended September 30, 2013 2012 2011 Components of net periodic  postretirement benefit cost: Service cost $ 66  $ 23  $ 40 Interest cost 23 17 39 Prior service cost — 51 115 Net gain recognized (59) (107) (37) Net periodic postretirement  benefit cost $  30 $  (16)  $ 157 J. COMMITMENTS AND CONTINGENCIES Long-Term Debt Leases Year Ending September 30, Expected Benefit Payments 2014 $ 40 2015 43 2016 43 2017 54 2018 63 2019 through 2023 353 Years Ending September 30, Operating Leases 2014 $ 4,741 2015 3,661 2016 2,801 2017 1,956 2018 2,143 Thereafter 6,405 Total lease commitments $ 21,707 See Note G herein for a discussion of our long-term debt.  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): 38 2013 2012 Weighted-average assumptions used to  determine benefit costs at September 30: Discount rate pre-retirement 0.00% 0.00% Discount rate post-retirement 3.08% 4.24% Current year trend rate 8.40% 9.00% Ultimate trend rate 5.00% 5.00% Year ultimate trend rate reached 2023 2015