Amtrak 2015 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 2015 Amtrak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 61

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61

National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
12. Postretirement Employee Benefits (continued)
46
cash is available. There were no unfunded withdrawal requests as of September 30, 2015 or September 30,
2014. Investments in real estate investment funds are classified as Level 2 assets.
Money Market Funds
Money market funds generally transact subscription and redemption activity at a $1.00 stable NAV. However,
on a daily basis, the fund’s NAV is calculated using the amortized cost (not market value) of the securities
held in the fund. It is generally accepted as industry best practice that securities valued at amortized cost are
Level 2 assets; amortized cost does not meet the criteria for an “active market.” This factor was the primary
determinant used by management to assign a fair value hierarchy of Level 2 to money market funds. Amtrak’s
category of investments in money market funds is comprised of JPMorgan 100% U.S. Treasury Securities
Money Market Fund. Management obtained and reviewed JP Morgan’s Money Market Funds Annual Report
and reviewed the investment valuation for JPMorgan 100% U.S. Treasury Securities Money Market Fund
in the significant accounting policies section of the report, which states that, “Each Fund has elected to use
the amortized cost method of valuation pursuant to Rule 2a-7 under the 1940 Act provided that certain
conditions are met, including that the Fund’s Board of Trustees continues to believe that the amortized cost
valuation method fairly reflects the market-based NAV per share of the Fund.”