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1509-1694994 9
National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements
Years Ended September 30, 2014 and 2013
1. Nature of Operations
The National Railroad Passenger Corporation (Amtrak or the Company) was incorporated in
1971 pursuant to the Rail Passenger Service Act of 1970 and is authorized to operate a
nationwide system of passenger rail transportation. The United States government (the Federal
Government) through the Secretary of the United States Department of Transportation (the DOT)
owns all issued and outstanding preferred stock (see Note 5). Amtrak’ s principal business is to
provide rail passenger transportation service in the major intercity travel markets of the United
States. The Company also operates commuter rail operations on behalf of certain states and
transit agencies, provides equipment and right-of-way maintenance services, and has leasing
operations.
The Company has a history of recurring operating losses and is dependent on subsidies from the
Federal Government to operate the national passenger rail system and maintain the underlying
infrastructure. These subsidies are usually received through annual appropriations. In recent
fiscal years, appropriated funds for Amtrak have been provided to the DOT, which through its
agency the Federal Railroad Administration (the FRA), provides those funds to Amtrak pursuant
to operating and capital funds grant agreements (see Note 4). Amtrak’ s ability to continue
operating in its current form is dependent upon the continued receipt of subsidies from the
Federal Government (see Note 2). The DOT, through the FRA, also provides financing to
Amtrak through the Railroad Rehabilitation and Infrastructure Financing Program (see Note 6
and Note 7).
2. Funding
The enactment on October 16, 2008 of the Passenger Rail Investment and Improvement Act of
2008 (PRIIA) as Public Law 110-432 authorized to the Secretary of the DOT (the Secretary) five
annual grants for Amtrak amounting to $9.8 billion for fiscal years (FY) 2009 through 2013.
Pursuant to the Continuing Appropriations Resolutions, 2014 (the 2014 CR) and Continuing
Appropriations Resolutions, 2015 (the 2015 CR), some of the requirements in PRIIA continue to
apply to the 2014 CR and 2015 CR.
The enactment on October 17, 2013 of the 2014 CR as Public Law 113-46 and the enactment on
January 17, 2014 of the Consolidated Appropriations Act, 2014, as Public Law 113-76 provided
total funding of approximately $1.4 billion for Amtrak’ s fiscal year ended September 30, 2014
(FY2014), consisting of capital and debt service assistance funds totaling $1.0 billion, of which
$10.3 million is designated to the FRA for oversight of capital projects and expenses associated
with implementation of PRIIA section 212, and operating funds totaling $340.0 million. As of