Amtrak 2013 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2013 Amtrak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 107

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107

Amtrak Annual Report 2013 | 31
Capital Expenditures
Capital spending programs are and have been designed to assure the ability to provide safe, efficient
and reliable transportation services. We receive funds from state and local entities for capital
programs as well as from federal appropriations.
The following table summarizes major capital expenditures by department for FY 2013 and FY 2012
(in millions):
Year Ended September 30,
2013 2012
Engineering $ 533.4 $ 464.3
Mechanical 415.9 326.4
Information Technology (“IT”) 38.3 35.0
Other 151.0 199.0
Total $ 1,138.6 $ 1,024.7
• Engineering major capital expenditures in FY 2013 included $217.8 million for track
replacement and maintenance projects; $103.6 million for station and facility upgrades; and
$38.2 million for construction and upgrades to bridges, tunnels, and culverts. Included in the
engineering capital spending is approximately $50.0 million of capital improvements for
compliance with the Americans with Disabilities Act (“ADA”).
• Mechanical major capital expenditures in FY 2013 included $71.9 million for overhauls and
conversions of Amfleets (single-level intercity passenger cars built for us in the 1970s and 1980s);
$55.3 million for overhauls and modifications on Superliners (bi-level passenger cars built for us
in the 1970s and 1990s and used on long distance trains that do not use the NEC); and $43.5
million for locomotive overhauls. Beyond overhauls, we also paid $60.5 million in milestone
payments towards the acquisition of long distance single-level cars from CAF USA, a part of the
CAF Group, an organization that designs, manufactures and delivers railway and transit vehicles
throughout the world.
• IT major capital expenditures in FY 2013 included $16.7 million for the Reservation Ecosystem
Next Generation Program (a program providing reservation services for passengers to book,
modify, or view reservation information in real time); and $10.3 million for our regular employee
hardware replacement program.
• Other major capital expenditures included $28.3 million related to safety, security, and
infrastructure protection; $15.1 million to remediate structural failings in the Philadelphia 30th
Street Station under street parking garage; and $14.5 million on the Gateway program (a
proposal to build a high-speed rail corridor along the NEC between 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 preparation of these financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. We base these estimates and