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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
3. Basis of Presentation and Summary of Significant Accounting Policies (continued)
19
In April 2015, the FASB issued ASU No. 2015-03, Imputation of Interest (Subtopic 835-30): Simplifying the
Presentation of Debt Issuance Costs. Under the new guidance, the debt issuance costs related to a recognized
debt liability will be presented on the balance sheet as a direct deduction from the carrying amount of that
debt liability. The amortization of debt issuance costs will continue to be included in interest expense. This
guidance should be applied retrospectively and is effective for the Company beginning with the fiscal year
ending September 30, 2017, with early adoption permitted. This ASU is not expected to have a material
impact on the Company’s consolidated statements of financial position or results of operations.
In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for
Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This ASU
removes the requirement to categorize within the fair value hierarchy all investments for which fair value is
measured using the net asset value per share practical expedient. This ASU is effective for the Company
beginning with the fiscal year ending September 30, 2017. Reporting entities must apply the new guidance
retrospectively to all periods presented. This ASU is expected to impact the Company’s fair value disclosures
on pension assets, but it will not have an impact on the Company’s consolidated statements of financial
condition or results of operations.
In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of
Inventory. The ASU simplifies the subsequent measurement of inventory by using only the lower of cost or
net realizable value. The ASU defines net realizable value as estimated selling prices in the ordinary course
of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective
for the Company beginning with the fiscal year ending September 30, 2018. The ASU should be applied
prospectively with earlier application permitted as of the beginning of an annual reporting period. The adoption
of this ASU is not expected to have a material effect on Amtrak’s consolidated financial statement presentation
or disclosures.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase
transparency and comparability among companies by requiring most leases to be included in the balance
sheet and by expanding disclosures on leasing arrangements. This ASU is effective for the Company beginning
with the fiscal year ending September 30, 2021, with early adoption permitted. The Company is currently
evaluating the impact of adopting this new guidance. As the Company is and will continue to be involved in
multiple leasing arrangements whereby the Company is either the lessee or the lessor, the adoption of the
ASU is expected to have a significant impact on the Company’s consolidated financial statements and
disclosures.