Amtrak 2015 Annual Report Download - page 33

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
8. Fair Value Measurements (continued)
31
The estimated fair values of the non-derivative financial instruments listed above are based upon discounted
cash flow analyses using interest rates available to Amtrak at September 30, 2015 and 2014, for debt with
the same remaining maturities.
For cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable,
accrued expenses and other current liabilities, the carrying amounts approximate fair value given the short-
term nature of the financial instruments.
9. Income Taxes
The Company recorded $49.0 million of income tax expense for the year ended September 30, 2015. This
resulted from net deferred tax liabilities that arise in periods subsequent to the expiration of the Company’s
existing net operating losses. There was no provision or benefit for income taxes for the year ended September
30, 2014.
A reconciliation of the expected amount computed by applying the U.S. federal statutory income tax rate of
35% to Amtrak’s pretax loss to Amtrak’s actual income tax rate for FY2015 and FY2014 is as follows:
Year ended September 30,
2015 2014
U.S. federal statutory income tax rate 35.0 % 35.0 %
Book/tax basis difference (25.3) (30.3)
Adjustments to OCI (10.7) 3.8
Federal operating grants (7.4) (11.7)
Valuation allowance 2.8 1.7
Other 1.5 1.5
Effective income tax rate (4.1) % — %