Amtrak 2013 Annual Report Download - page 89

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 50
11. Commitments and Contingencies (continued)
jurisdictional grounds, which was granted on June 13, 2011. The case was transferred to the U.S.
District Court for the District of Columbia. The District Court granted Amtrak’ s motion for
summary judgment and denied NY City’ s claims. NY City appealed to the DC Circuit Court of
Appeals. All briefing on appeal was completed by January 16, 2014. On November 24, 2014, the
DC Circuit Court of Appeals heard oral arguments in the appeal and took the matter under
advisement. At this stage of the litigation, it is Amtrak’ s assessment that an outcome adverse to
its interests, while reasonably possible, is not probable.
Amtrak is involved in various other litigation and arbitration proceedings in the normal course of
business, including but not limited to several distinct tort, contract and civil rights claims. The
outcome of these matters cannot be predicted with certainty. When management concludes that it
is probable that a liability has been incurred and the amount of the liability can be reasonably
estimated, it is accrued through a charge to earnings. While the ultimate amount of liability
incurred in any of these lawsuits and claims is dependent on future developments, in
management’ s opinion, recorded liabilities, where applicable, are adequate to cover the future
payment of such liabilities and claims. However, the final outcome of any of these lawsuits and
claims cannot be predicted with certainty, and unfavorable or unexpected outcomes could result
in additional accruals that could be significant to Amtrak’ s results of operations in a particular
year. Any adjustments to the recorded liability will be reflected in earnings in the periods in
which such adjustments are known.
Americans With Disabilities Act (“ADA”) Compliance
Under the ADA, stations in the intercity rail transportation system served by Amtrak were
required to be readily accessible to and usable by individuals with disabilities no later than
July 26, 2010, 42 U.S.C. §12162(e). This requirement applies to all components of a station used
by the general public, including passenger platforms, designated waiting areas, ticketing areas,
restrooms, and in some cases, concession areas. The Company has developed a plan to bring its
stations into ADA compliance. This plan is regularly updated and adjusted based on external
factors, such as recent regulation promulgated by the DOT regarding ADA requirements for
platforms. This new regulation requires platform length level boarding at all stations with no
active freight railroad use (as described in the rule) and also requires that all alternative means
assisted boarding – meaning other than plans for full-length level boarding platforms – be
submitted to DOT for review and approval prior to construction. In light of these external
factors, Amtrak is reassessing its previously developed plans to meet the requirements and has
agreed to adopt a policy that will minimize the use of mobile lifts and provide level boarding