Amtrak 2014 Annual Report Download - page 26

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 18
3. Basis of Presentation and Summary of Significant Accounting Policies (continued)
expense increased the Company’ s net loss during FY2014 and FY2013 by $31.7 million and
$39.7 million, respectively. As of September 30, 2013 the estimated accelerated depreciation was
$231.8 million. The Company’ s estimate changed during FY2014 to $193.1 million as disclosed
above. The change in estimate is being recognized on a prospective basis.
Casualty Losses and Claims
Provision is made for Amtrak’ s portion of the estimated actuarial liability for unsettled casualty
and other claims. Personal injury liability and ultimate loss projections are undiscounted and
estimated using standard actuarial methodologies. These actuarial estimates include an estimate
for unasserted claims. As of September 30, 2014 and 2013, the reserve for casualty losses and
claims was $196.7 million and $236.0 million, respectively. Of the total amount reserved as of
September 30, 2014 and 2013, the estimated current claims liability included in “Accrued
expenses and other current liabilities” in the Consolidated Balance Sheets was $46.0 million and
$57.3 million, respectively. The balance of the reserve as of both September 30, 2014 and 2013
is included in “Casualty reserves” in the Consolidated Balance Sheets.
Revenue Recognition
“Passenger related” revenue in the Consolidated Statements of Operations includes ticket
revenue, state contribution revenue associated with requested service provided by Amtrak, and
food and beverage revenue as follows (in millions):
Year Ended September 30,
2014 2013
Ticket $ 2,147.2
$ 2,056.2
State contribution 235.2 187.1
Food and beverage 125.8 123.4
Total passenger related revenue $ 2,508.2
$ 2,366.7
These revenues are recognized as operating revenues when the related services are provided.
Amounts received for tickets that have been sold but not used are reflected as “Deferred ticket
revenue” in the Consolidated Balance Sheets.