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A N N U A L R E P O R T
F I S C A L Y E A R 2 0 1 3
“Moving America Where It Wants To Go”

Table of contents

  • Page 1
    ANNUAL REPORT FISCAL YEAR 2013 "Moving America Where It Wants To Go"

  • Page 2
    ... of The Board Letter from The Chief Financial Officer The Executive Team The Board of Directors Biographies of the Board of Directors Management's Discussion and Analysis of Financial Condition and Results of Operations Audited Financial Statements 4 8 10 12 13 14 19 39 Amtrak Annual Report 2013...

  • Page 3
    ... passenger rail mobility consisting of high quality service that is trip-time competitive with other intercity travel options." Amtrak manages a national network structured to provide short-distance services of 750 miles or less and long-distance trains that provide system connectivity on routes...

  • Page 4
    Amtrak Annual Report 2013 | 5

  • Page 5
    6 | Amtrak Annual Report 2013

  • Page 6

  • Page 7
    ...Regional trains experienced considerable delays. Twenty of Amtrak's 45 routes set annual ridership records. The long-distance services had their best year in two decades, while state-supported routes had their best year ever with 15.4 million passengers. Amtrak also set a monthly ridership record in...

  • Page 8
    ...FY 2014-FY 2018. Following its precepts, we strive to fulfill our mission of delivering intercity transportation with superior safety, customer service and financial excellence. Sincerely, Joe Boardman President and Chief Executive Officer Anthony Coscia Chairman, Board of Directors Amtrak Annual...

  • Page 9
    LETTER FROM THE CHIEF FINANCIAL OFFICER Gerald Sokol We are pleased to present our Fiscal Year 2013 Amtrak Annual Report, which includes the audited financial results of the company for the year ended September 30, 2013 (FY 2013). Issuance of our FY 2013 audited financial statements was delayed as...

  • Page 10
    ... is being recorded beginning in FY 2013 to recognize depreciation expense over the remaining life of these assets. Financial excellence is one of Amtrak's corporate goals established in the most recent Amtrak Strategic Plan. Although we generally take that to mean reducing our operating ratio and...

  • Page 11
    ...: Chief Marketing and Sales Officer Matthew Hardison, Chief Human Capital Officer Barry Melnkovic, Inspector General Ted Alves, Chief Corporate Liaison Margaret B. Reid, Chief Strategic Officer Mark Yachmetz and Chief Information Officer Jason Molfetas. Second row, left to right: Chief of Police...

  • Page 12
    THE BOARD OF DIRECTORS Pictured from back row; left to right: Christopher Beall, Jeffrey Moreland, Vice Chairman of the Board and Anthony Coscia, Chairman of the Board; Middle Row: Albert DiClemente, Yvonne Brathwaite Burke and Joseph Szabo (alternate for the U.S. Secretary of Transportation); ...

  • Page 13
    ... chairman of both the Executive Committee of the Transportation Research Board (TRB) and the American Association of State Highway and Transportation Officials' (AASHTO) Standing Committee on Rail Transportation (SCORT). Mr. Boardman is a native of New York State. He served in the United States Air...

  • Page 14
    ... Board in March 2013. Mr. Moreland was recently Executive Vice President for Public Affairs at Burlington Northern Santa Fe Railway Company (BNSF). Prior to that position, he served as Executive Vice President, Law & Government Affairs and Secretary, Executive Vice President Law and Chief of Staff...

  • Page 15
    ... to give birth while in office and the first to be granted maternity leave by the Speaker of the United States House of Representatives. She did not seek re-election to Congress in 1978 but instead ran for Attorney General of California. She won the Democratic nomination over Los Angeles City...

  • Page 16
    Moving America where it wants to go! Amtrak Annual Report 2013 | 17

  • Page 17
    ...Enjoy the journey®

  • Page 18
    ... obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments, or otherwise. GENERAL BUSINESS DESCRIPTION Our principal business is to provide rail passenger service in the major intercity travel markets of the United States. In...

  • Page 19
    ... service (Chicago-Detroit/Pontiac, Michigan) - 0.5 million. Amtrak-owned and/or -maintained property includes: • Northeast Corridor: 363 miles of the 456-mile NEC, which connects Washington, D.C., Philadelphia, New York City, and Boston and is the busiest passenger line in the country, with trains...

  • Page 20
    ... that date to the 1830s, Amtrak, the U.S. Department of Transportation and the commuter railroads have created a network that supports an intense daily schedule of more than 2,200 trains and provides hourly high-speed service, with a top speed (on the Boston to New York route) of 150 mph. On each...

  • Page 21
    ...we serve. Operating over routes that range up to 2,438 miles in length (the Empire Builder), the long-distance trains serve to connect nearby communities with one another, with terminal cities, and with other Amtrak services at major hubs such as Chicago. The majority of coach passengers travel over...

  • Page 22
    ... our revenue was 89% in FY 2013 and 88% in FY 2012. Certain project related and non-cash expenses are not eligible for reimbursement under our annual operating grant.We rely on federal funding for operating and capital and debt service costs not covered by revenues. Amtrak Annual Report 2013 | 23

  • Page 23
    .... NEC train ridership decreased by 0.2% while ticket revenues increased by 5.3% in FY 2013, compared with FY 2012. Ridership and ticket revenue suffered in most markets in the north end of the NEC in FY 2013, especially the Boston/Philadelphia and New York City/Boston endpoints. Several service...

  • Page 24
    ...the Capitol Ltd., City of New Orleans, Sunset Ltd., Palmetto, and Coast Starlight. However, the ridership increase was modest when compared with SD routes in FY 2013 because of service changes resulting from track work and weather-related outages, including Sandy. State supported revenues We partner...

  • Page 25
    ... purchased in support of the Michigan Line track improvements. Facility, communication, and office-related expenses increased by $6.4 million to $181.9 million in FY 2013, compared with FY 2012, primarily because of increased station rent and facility maintenance expenses. Advertising and sales...

  • Page 26
    ... premiums. Indirect cost capitalized to property and equipment increased by $9.4 million to $126.4 million in FY 2013, compared with FY 2012, primarily because of an increase in capital spending on track replacement work and engineering labor. Net Other Expense Selected Financial Data (in millions...

  • Page 27
    ... year $ 282.3 As discussed elsewhere in this Annual Report, we rely on federal funding for capital and debt service payments and operating costs not covered by revenues. The portion of eligible operating expenses covered by total revenues was 89% in FY 2013 and 88% in FY 2012. Operating Cash Flows...

  • Page 28
    ...FY 2013, compared with $853.9 million in FY 2012. The increase was driven by an increase in capital spending due to the Hudson Yards Tunnel project and Long Distance Car Replacement project, along with spending on the new ACS 64 locomotives and the Springfield double track. Financing Cash Flows Cash...

  • Page 29
    ... a five-year financial plan for operating and capital expenditures within 60 days of the enactment of the fiscal year appropriation. Congress enacted the Consolidated and Further Continuing Appropriations Act 2015, signed by the President of the United States on December 16, 2014. Therefore, the...

  • Page 30
    ... Newark, New Jersey and New York City). • • • CRITICAL ACCOUNTING ESTIMATES This MD&A is based on our Consolidated Financial Statements contained elsewhere in this Annual Report, which have been prepared in accordance with accounting principles generally accepted in the United States. The...

  • Page 31
    ...the service life or salvage value of individual property units within the same class. This excludes computer equipment and software, which are carried at cost and are individually depreciated on a straight-line basis over their estimated useful lives, which are generally 5 to 10 years. Property held...

  • Page 32
    ...in New York and New Jersey, requiring repair work and disrupting passenger-related revenue. Costs incurred by us during FY 2013 totaled approximately $21.7 million, including repairs to damaged property and emergency incurred expenses to continue operating the affected tunnels. We currently estimate...

  • Page 33
    ... Accounting for pensions and other post-retirement benefits requires management to make several estimates and assumptions (see Note 13 to the Consolidated Financial Statements). These include the discount rates used to measure future obligations and interest expense, long-term rate of return on plan...

  • Page 34
    ... used a compensation increase rate of 4.2% to value our FY 2013 and FY 2012 pension obligations. Health Care Cost Trend Rates Health care cost trend rates are based on recent plan experience and industry trends. We use guidance from employee benefits and actuarial consultants, Amtrak-specific claims...

  • Page 35
    ... by factors that include official rulings, newly discovered or developed evidence, or changes in laws, regulations and evidentiary standards. Inflation In preparing financial statements, U.S. generally accepted accounting principles require the use of historical cost, which does not reflect...

  • Page 36
    Notes Amtrak Annual Report 2013 | 37

  • Page 37
    Notes 38 | Amtrak Annual Report 2013

  • Page 38
    CONSOLIDATED FINANCIAL STATEMENTS National Railroad Passenger Corporation and Subsidiaries (Amtrak) Years Ended September 30, 2013 and 2012 With Report of Independent Auditors Ernst & Young LLP

  • Page 39
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Consolidated Financial Statements Years Ended September 30, 2013 and 2012 Contents Report of Independent Auditors...1 Audited Financial Statements Consolidated Balance Sheets ...3 Consolidated Statements of Operations ...5 ...

  • Page 40
    ... National Railroad Passenger Corporation and subsidiaries ("Amtrak" or the "Company"), which comprise the consolidated balance sheets as of September 30, 2013 and 2012, and the related consolidated statements of operations, comprehensive loss, changes in capitalization, and cash flows for the years...

  • Page 41
    ... financial position of National Railroad Passenger Corporation and subsidiaries at September 30, 2013 and 2012, and the consolidated results of their operations and their cash flows for the years then ended in conformity with U.S. generally accepted accounting principles. Federal Government Funding...

  • Page 42
    ...,373 at September 30, 2013 and 2012, respectively Prepaid expenses Other current assets Total current assets Property and equipment: Locomotives Passenger cars and other rolling stock Right-of-way and other properties Construction in progress Leasehold improvements Property and equipment, gross Less...

  • Page 43
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Consolidated Balance Sheets (continued) (In Thousands of Dollars) September 30 2013 2012 Liabilities and capitalization Current liabilities: Accounts payable Accrued expenses and other current liabilities Deferred ticket revenue ...

  • Page 44
    ...Year Ended September 30 2013 2012 Revenues: Passenger related Commuter State capital payments Other Total revenues Expenses: Salaries, wages, and benefits Train operations Fuel, power, and utilities Materials Facility, communication, and office related Advertising and sales Casualty and other claims...

  • Page 45
    ... Passenger Corporation and Subsidiaries (Amtrak) Consolidated Statements of Comprehensive Loss (In Thousands of Dollars) Year Ended September 30 2013 2012 Net loss Other comprehensive loss: Pension and other postretirement benefit items: Net (gain) loss arising during period Prior service cost...

  • Page 46
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Consolidated Statements of Changes in Capitalization (In Thousands of Dollars) Preferred Stock $ 10,939,699 - - - - - (440) - $ 93,857 - $ 23,436,542 1,771,986 $ (27,738,991) $ - - (1,255,014) Common Stock Other Paid-in Capital ...

  • Page 47
    ...) Consolidated Statements of Cash Flows (In Thousands of Dollars) Year Ended September 30 2013 2012 Cash flows from operating activities Net loss Adjustments to reconcile net loss to net cash used in operating activities: Depreciation Loss on sale of property and equipment Gain on exercise of early...

  • Page 48
    ...Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements Years Ended September 30, 2013 and 2012 1. Nature of Operations The National Railroad Passenger Corporation ("Amtrak" or the "Company") was incorporated in 1971 pursuant to the Rail Passenger Service...

  • Page 49
    ... Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 2. Restatement of 2012 Financial Statements (continued) Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 250-10S99-2, Considering the Effects of Prior Year...

  • Page 50
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 2. Restatement of 2012 Financial Statements (continued) The following tables set forth the Company' s Consolidated Balance Sheet as of September 30, 2012 and the Consolidated ...

  • Page 51
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 2. Restatement of 2012 Financial Statements (continued) S eptember 30, 2012 As Previously Reported Consolidated Balance Sheet (continued) Current Liabilities: Accounts payable ...

  • Page 52
    ... Reported Consolidated Statement of Operations Revenues: Passenger related ...$ Commuter ...State capital payments ...Other ...Total revenues ...Expenses: Salaries, wages, and benefits ...Train operations ...Fuel, power, and utilities ...M aterials ...Facility, communication, and office related...

  • Page 53
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 2. Restatement of 2012 Financial Statements (continued) Consolidated S tatement of Changes in Capitalization $ - 10,939,699 - - 93,857 23,436,542 1,771,986 - 10,939,699 $ 93,857...

  • Page 54
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 2. Restatement of 2012 Financial Statements (continued) As Previously Reported $ (26,668,561) (1,342,004) - (28,010,565) (1,239,435) $ (29,250,000) $ Adjustments (in thousands of...

  • Page 55
    ... net loss to net cash used in operating activities: Depreciation ...Gain on sale of property and equipment...Loss on early extinguishment of debt ...Other ...Changes in assets and liabilities: Accounts receivable ...M aterials and supplies ...Prepaid expenses ...Other current assets ...Other...

  • Page 56
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 3. Funding The enactment on October 16, 2008 of the Passenger Rail Investment and Improvement Act of 2008 ("PRIIA") as Public Law 110-432 authorized to the Secretary of the DOT (...

  • Page 57
    ..., operating and maintaining a new railroad terminal in the City of Chicago. The name was officially changed to Chicago Union Station Company on May 7, 1915. Amtrak acquired 50% stock ownership in 1976 as part of the conveyance of the Northeast Corridor ("NEC") and off-Corridor properties. Amtrak...

  • Page 58
    ... funds for certain operations of the Amtrak Police Department; (ii) restricted cash from a contractor performing work for the Illinois Department of Transportation; (iii), restricted cash held for Amtrak' s Office of Inspector General ("OIG") and used to reimburse the cost of program management...

  • Page 59
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 4. Basis of Presentation and Summary of Significant Accounting Policies (continued) Accounts Receivable and Allowance for Doubtful Accounts Billed accounts receivable represent ...

  • Page 60
    ... service life or salvage value of individual property units within the same class. This excludes computer equipment and software, which are stated at cost and are individually depreciated on a straight-line basis over their estimated useful lives, which are generally 5 to 10 years. Properties held...

  • Page 61
    ... maintenance, are charged to operating expense when the work is performed. The cost of internally developed software is capitalized and amortized over its estimated useful life, which is generally 5 to 10 years. The Company recognizes the fair value of any liability for conditional asset retirement...

  • Page 62
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 4. Basis of Presentation and Summary of Significant Accounting Policies (continued) 135,515 and 41,000 rail ties during the fiscal years 2013 and 2012, respectively, and plans on...

  • Page 63
    ... in New York and New Jersey, requiring repair work and disrupting passenger-related revenue. Costs incurred by Amtrak during the year ended September 30, 2013 totaled approximately $21.7 million, including repairs to damaged property and emergency incurred expenses to continue operating the...

  • Page 64
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 4. Basis of Presentation and Summary of Significant Accounting Policies (continued) accelerated over five years, $40.3 million for the East River Tunnel is being accelerated over...

  • Page 65
    ...other transportation revenue from use of Amtrak-owned tracks and other services; commercial development revenue from retail, parking, advertising, real property leases/easements/sales, and right-of-way fees; freight access fee revenue from the use of Amtrak-owned tracks by freight railroad companies...

  • Page 66
    ... 30, 2013 and 2012, respectively. Advertising Expenses The Company records advertising expenses as incurred and reports these amounts in "Advertising and sales" in the Consolidated Statements of Operations. Advertising expenses were $35.5 million and $24.0 million for fiscal years 2013 and 2012...

  • Page 67
    ... Company. Accordingly, there is no provision for state and local income or franchise taxes recorded in the consolidated financial statements for the fiscal years 2013 and 2012 (see Note 10). Use of Estimates The preparation of financial statements in conformity with accounting principles generally...

  • Page 68
    ...long-lived assets, estimates of wrecked and damaged equipment, estimates of casualty reserves, pension and other postretirement employee benefits expense and obligations (including expected return on plan assets, discount rates, rate of future compensation increases, and health care cost trend rates...

  • Page 69
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 5. Accounting and Reporting for Federal Payments Certain funds are provided to Amtrak during the year through federal payments for capital and operating expenditures. These ...

  • Page 70
    ... of Acela Express high-speed rail operations occurs. It will also reconfigure track switches at the western entrance to New York Penn Station to mitigate congestion. Funding is provided on a reimbursable basis. As of September 30, 2013 and 2012, Amtrak cumulatively received $20.6 million...

  • Page 71
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 5. Accounting and Reporting for Federal Payments (continued) matures on December 31, 2975, and is secured by the real and personal property of Amtrak, WTC, CUS, and PRIL. The ...

  • Page 72
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 6. Preferred and Common Stock (continued) As of September 30, 2013 and 2012, 10,000,000 shares of $10 par value common stock were authorized, of which 9,385,694 shares were ...

  • Page 73
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 7. Mortgages and Debt Total debt in the Consolidated Balance Sheets consisted of the following (in thousands): September 30, 2013 September 30, 2012 Long-term debt: Current Long-...

  • Page 74
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 7. Mortgages and Debt (continued) Mortgage Obligations Penn Station Mortgage In June 2001, PSL mortgaged a substantial portion of improvements located at Penn Station in New York...

  • Page 75
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 7. Mortgages and Debt (continued) On February 15, 2012, Amtrak initiated a mandatory tender for purchase of the $45.0 million Series B bonds. The Series B bonds were remarketed ...

  • Page 76
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 7. Mortgages and Debt (continued) Equipment Loans In 2010 and 2009, Amtrak exercised early buyout options to purchase 40 locomotives and eight superliner passenger cars under ...

  • Page 77
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 7. Mortgages and Debt (continued) On November 2, 2012 Amtrak also entered into an interest rate swap agreement to manage the interest cost and risk associated with the 2012 PEDFA...

  • Page 78
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 7. Mortgages and Debt (continued) charges, deposits, and other" in the Consolidated Balance Sheets and is being amortized over the term of the loan. The amortization of the ...

  • Page 79
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 7. Mortgages and Debt (continued) certain of its borrowing arrangements to provide on a timely basis its audited financial statements as of and for the year ended September 30, ...

  • Page 80
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 8. Leasing Arrangements (continued) Future Minimum Lease Payments As of September 30, 2013, future minimum lease payments are (in thousands): Year ending September 30, 2014 2015 ...

  • Page 81
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 8. Leasing Arrangements (continued) Amtrak lease offices, operating areas, stations and other terminal space. These leases often contain renewal options to enable the Company to ...

  • Page 82
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 9. Fair Value Measurements (continued) The Company' s derivative financial instruments are valued by a third-party consultant based on prevailing market data derived from ...

  • Page 83
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 9. Fair Value Measurements (continued) The estimated fair values of the non-derivative financial instruments listed above are based upon discounted cash flow analyses using ...

  • Page 84
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 10. Income Taxes (continued) Deferred income tax assets and liabilities were comprised of the following (in thousands): September 30 2013 2012 Deferred tax assets: Deferred gain ...

  • Page 85
    ... various agreements with states, cities, and other local transportation authorities and private companies pursuant to which Amtrak is required to fund various railroad facility and infrastructure improvements, and to fund the remanufacture and supply of railroad passenger equipment. Such commitments...

  • Page 86
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 11. Commitments and Contingencies (continued) contract with the same contractor to provide materials and engineering technical support for the new electric locomotives. The ...

  • Page 87
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 11. Commitments and Contingencies (continued) On September 17, 2014, the Company filed a lawsuit in the Southern District of New York regarding insurance claims for losses ...

  • Page 88
    ... to operate intercity passenger rail service in return for paying Amtrak one-half of APU' s 1969 passenger service losses. APU took advantage of that opportunity, entered into a 1971 agreement with Amtrak, paid $52.0 million as required, and chose to receive Amtrak common stock at par value (rather...

  • Page 89
    ... new regulation requires platform length level boarding at all stations with no active freight railroad use (as described in the rule) and also requires that all alternative means assisted boarding - meaning other than plans for full-length level boarding platforms - be submitted to DOT for review...

  • Page 90
    ...Consolidated Financial Statements (continued) 11. Commitments and Contingencies (continued) options at stations where freight traffic is present when ridership is greater than 7,500 passenger boardings and unboardings per year. Amtrak believes that the new revised plans will entail additional costs...

  • Page 91
    ...City Terminal Railway Co. ("KCT") is a Class III railroad whose property is located in and around Kansas City, Missouri. Currently, Amtrak operates four Missouri state-supported service trains and two Amtrak long distance trains over KCT' s rail lines each day. Under federal law, Class III railroads...

  • Page 92
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 12. Environmental Matters (continued) been recorded. However, for remaining locations, the Company has no plans or expectations to undertake demolitions or major renovations that...

  • Page 93
    ... bargaining position and returns within 90 days of the termination or transfer, he or she will be eligible to reenter the plans. Obligations and Funded Status The liability of the Company' s pension plan, as well as other post-retirement benefits plans, as of September 30, 2013 and 2012 was...

  • Page 94
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Pension Benefits 2013 2012 Reconciliation of fair value of plan assets: Plan assets at October 1 Actual gain on plan assets ...

  • Page 95
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Pension and other postretirement benefit amounts recognized in accumulated other comprehensive loss at September 30, 2013 and ...

  • Page 96
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Plan Assets The Company' s pension plan asset allocation at September 30, 2013 and 2012, and target allocation for 2014, are as ...

  • Page 97
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) The accounting guidance on fair value measurements specifies a fair value hierarchy based on the ability to observe inputs used ...

  • Page 98
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Securities Money Market Fund in the significant accounting policies section of the report, which states that, "Each Fund has ...

  • Page 99
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Common/Collective Trust This category (collectively "the Funds") consists of an investment in the Thornburg International Equity ...

  • Page 100
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) The following table represents the fair values of the Company' s pension assets by level within the fair value hierarchy at ...

  • Page 101
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Total September 30, 2012 Agency backed bonds $ U.S. government securities Corporate bonds Government bonds Municipal bonds Asset-...

  • Page 102
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Estimated Future Benefit Payments Based upon the assumptions used to measure the pension and other postretirement benefit ...

  • Page 103
    ... Consolidated Financial Statements (continued) 13. Postretirement Employee Benefits (continued) Weighted-average assumptions used to determine net periodic benefit cost for the years ended September 30, 2013 and 2012 are as follows: Pension Benefits 2013 2012 Discount rate Expected long term return...

  • Page 104
    ... provides a 401(k) saving plan for union employees. Amtrak does not match any portion of the employee contributions under this plan. 14. Subsequent Events Term Loan On November 27, 2013, the Company entered into a $130.0 million credit facility with a major financial institution. On June 19, 2014...

  • Page 105
    National Railroad Passenger Corporation and Subsidiaries (Amtrak) Notes to Consolidated Financial Statements (continued) 14. Subsequent Events (continued) Management's Evaluation The Company has evaluated subsequent events through November 25, 2014, which is the date the financial statements were ...

  • Page 106
    ... of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2013 Ernst & Young LLP. All Rights Reserved. ey.com

  • Page 107
    Amtrak 60 Massachusetts Avenue, N.E. Washington, D.C. 20002 Amtrak.com Amtrak and Enjoy the journey are service marks of the National Railroad Passenger Corporation.