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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 31
5. Accounting and Reporting for Federal Payments (continued)
Since 2005, the Department of Homeland Security has awarded Amtrak a total of $148.7 million
in annual grants from the Intercity Passenger Rail Grants Program, American Recovery and
Reinvestment Act Rail and Transit Security Grant Program, and other security grants. Funding is
provided on a reimbursable basis. Amtrak has cumulatively received $92.0 million and
$64.7 million as of September 30, 2013 and 2012, respectively, which are included in “Other
Paid-in Capital” in the Consolidated Balance Sheets and Statements of Changes in
Capitalization.
In May 2011, the DOT awarded Amtrak $449.9 million in American Recovery and
Reinvestment Act of 2009 High Speed Intercity Passenger Rail funding to upgrade its rail
infrastructure to support more frequent and faster high-speed rail service, and to improve
reliability of current service between New York and Washington. The funding supports the
project to upgrade electrical power, signal systems, and track and overhead catenary wires
between Trenton and New Brunswick, New Jersey – one of the busiest segments of the NEC and
where the densest concentration 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 and $1.1 million, respectively, which were recorded
in “Other paid-in capital” in the Consolidated Balance Sheets and Statements of Changes in
Capitalization.
On October 15, 2010, the United States Department of Treasury and DOT, acting through the
FRA, in consultation with each other and the Company, entered into a Memorandum of
Understanding (the “MOU”) to set forth terms and conditions for the exercise of certain early
buyout options on select leases entered into by the Company. The MOU provides funding up to
$420.5 million from October 15, 2010 through July 1, 2013. Amtrak cumulatively received
$416.2 million and $359.0 million as of September 30, 2013 and 2012, respectively. The
Company exercised five early buyout options during the fiscal year ended September 30, 2013
and six early buyout options during the fiscal year ended September 30, 2012.
“Other paid-in capital”, included in the Consolidated Balance Sheets and Statements of Changes
in Capitalization, also includes the effects of certain funding received from the Federal
Government to finance acquisition of and improvements to property and equipment. In exchange
for this funding, Amtrak issued two promissory notes to the United States of America. The first
note with a balance of $4.0 billion as of September 30, 2013 and 2012, was issued in 1976 and