Amtrak 2013 Annual Report Download - page 57

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 18
3. Funding (continued)
There are currently no Federal operating subsidies appropriated for any period subsequent to
December 11, 2014. Without such subsidies, Amtrak will not be able to continue to operate in its
current form and significant operating changes, restructuring or bankruptcy may occur. Such
changes or restructuring would likely result in asset impairments. The Company ultimately
expects it will receive sufficient funds in the form of Continuing Appropriations Resolutions or
other appropriations legislation to support its operations for the foreseeable future.
4. Basis of Presentation and Summary of Significant Accounting Policies
Method of Accounting
The accompanying financial statements are presented using the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America.
Principles of Consolidation
The Consolidated Financial Statements reflect the consolidated operations of Amtrak and its
three wholly owned subsidiaries, Chicago Union Station Company (“CUS”), Passenger Railroad
Insurance, Limited (“PRIL”), and Penn Station Leasing, LLC (“PSL”); and its 99.9% interest in
Washington Terminal Company (“WTC”). All significant intercompany balances and
transactions have been eliminated.
CUS was incorporated on July 3, 1913 as the Union Station Company, for the purpose of
constructing, 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 purchased the remaining 50% stock ownership in
1984. CUS’ s business is comprised of the following segments: provision of right of way and
station access and use to intercity and commuter services; and lease and licensing of station
space for retail services, display advertising, special events and other commercial uses.
PRIL was incorporated on December 18, 1996 under the laws of Bermuda to provide excess
liability and property insurance coverage to Amtrak.
PSL was formed on April 17, 2001 to acquire from Amtrak and sublet back to Amtrak the
leasehold estate in a portion of the real property and improvements located in the City and State
of New York, commonly known as Penn Station.