Amtrak 2013 Annual Report Download - page 68

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 29
4. Basis of Presentation and Summary of Significant Accounting Policies (continued)
The Company bases these estimates on historical experience, the current economic environment,
and on various other assumptions that are believed to be reasonable under the circumstances.
However, uncertainties associated with these estimates exist and actual results may differ from
these estimates. Some of the more significant estimates include: allowance for doubtful accounts
and obsolescence of material and supplies, estimated useful lives of property and equipment,
calculation of accelerated depreciation related to Sandy, recoverability of 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),
estimated costs for retroactive wages for union employees, estimated costs of asset retirement
obligations, valuation allowance for deferred tax assets and environmental reserves.
Comprehensive Loss
Amtrak reports a comprehensive loss in the Consolidated Statements of Comprehensive Loss.
Comprehensive loss is defined as all changes in capitalization during a period, other than those
resulting from investments by and distributions to stockholders. As of September 30, 2013 and
2012, Accumulated Other Comprehensive Loss consists of adjustments for pension and other
post-retirement liabilities.
Recent Accounting Pronouncements
In February 2013, the FASB issued ASU 2013-02, Other Comprehensive Income (Topic 220).
This guidance seeks to improve the reporting of reclassifications out of accumulated other
comprehensive income. Companies are required to report the effect of significant
reclassifications out of accumulated other comprehensive income on the respective line items in
net income if the amount being reclassified is required under U.S. generally accepted accounting
principles (“GAAP”). This update is effective prospectively for reporting periods beginning after
December 15, 2013. The Company does not expect the adoption of this standard to have a
material impact on its financial condition or results of operations.