Amtrak 2015 Annual Report Download - page 22

National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
4. Accounting and Reporting for Federal Payments
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Certain funds are provided to Amtrak during the year through federal payments. These federal payments,
which are recorded when received in “Other paid-in capital” in the Consolidated Balance Sheets and
Consolidated Statements of Changes in Capitalization, totaled $1.5 billion per year in each of FY2015 and
FY2014.
Note 2 provides information on the Company's annual operating and capital and debt service funding.
Additional federal funding received by the Company is described below.
In accordance with the Disaster Relief Appropriations Act, 2013 (Public Law No. 113-2, January 29, 2013),
Amtrak was provided with a net appropriation of $30.2 million for damages incurred following Sandy on
October 29, 2012, of which $7.0 million and $3.5 million was received in FY2015 and FY2014, respectively,
and with a net appropriation of $185.0 million for the Hudson Yards Concrete Encasement Project, of which
$28.7 million and $130.6 million was received in FY2015 and FY2014, respectively.
Since 2005, the Department of Homeland Security has awarded Amtrak a total of $159.9 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 $147.8 million and $108.3 million as of September 30, 2015 and 2014,
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. Funding is provided on
a reimbursable basis. As of September 30, 2015 and 2014, Amtrak cumulatively received $240.5 million and
$133.7 million, respectively, which were recorded in “Other paid-in capital” in the Consolidated Balance
Sheets and Statements of Changes in Capitalization.
Additional appropriations are made to directly fund operations of Amtrak’s Office of Inspector General (OIG).
$23.9 million was appropriated in FY2015 to be spent by September 30, 2015. Amtrak and the OIG entered
into a services agreement on January 8, 2010, whereby Amtrak would continue to provide accounting and
financial management services for the OIG. Amtrak is reimbursed for expenses incurred upon the submission
of invoices to the OIG. As of September 30, 2015, Amtrak invoiced and received $22.4 million, which was
recorded in “Other paid-in capital” in the Consolidated Balance Sheets and Consolidated Statements of
Changes in Capitalization.
“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 for the
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 has a balance of $4.0 billion as of
September 30, 2015 and 2014, was issued in 1976 and matures on December 31, 2975, and is secured by the
real and personal property of Amtrak, WTC, CUS, and PRIL. The second note has a balance of $1.1 billion