Amtrak 2013 Annual Report Download - page 26

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Amtrak Annual Report 2013 | 27
train and a vehicle at a road crossing as well as increases in reserves related to various employee
injuries covered under the Federal Employers Liability Act.
Depreciation expense increased by $39.4 million to $687.1 million in FY 2013, compared with FY
2012, because of an adjustment for accelerated depreciation related to Sandy in FY 2013.
Other expenses increased by $23.5 million to $374.4 million in FY 2013, compared with FY 2012,
primarily because of increased reimbursable maintenance of way activities, increases in professional
fees and increases in insurance 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)
Net other expense includes interest income on cash and cash equivalents and escrow deposits held,
interest expense associated with the financing of equipment and buildings, loss recognized upon the
early extinguishment of debt, and other non-operating income and expenses.
Year Ended September 30,
Other (Income) and Expense: 2013 2012 $ Change % Change
Interest income $ (2.4) $ (7.7) $ 5.3 (68.8)%
Interest expense 75.0 100.8 (25.8) (25.6)
Loss on early extinguishment of debt 10.5 3.8 6.7 176.3
Other (income) expense, net (20.9) 0.6 (21.5)
Net other expense $ 62.2 $ 97.5 $ (35.3) (36.2)%
Interest income decreased by $5.3 million to $2.4 million in FY 2013, compared with FY 2012. The
decrease was primarily because of reduced income-earning cash and cash equivalents resulting from
the release and use of cash collateral instruments associated with lease obligations terminated in FY
2013.
Interest expense decreased by $25.8 million to $75.0 million in FY 2013, compared with FY 2012,
primarily because of the decrease in the outstanding principal balance on existing capital leases
resulting from regular principal payments made throughout the year and early buyouts exercised in
FY 2013.
Loss on early extinguishment of debt increased by $6.7 million to $10.5 million in FY 2013,
compared with FY 2012. The increase was driven by the restructuring of the Pennsylvania Economic
Development Financing Authority (“PEDFA”) Garage Bonds and the purchase of the equity
interests in the leases related to the three Acela High Speed Maintenance Facilities (“HSMF”) in
FY 2013. The increase in FY 2013 was offset by the refinancing of the PEDFA Series A and B
bonds in FY 2012, which were accounted for as early extinguishments of debt in FY 2012.
Other (income) expense, net changed by $21.5 million to $20.9 million of other income in FY 2013,