Amtrak 2013 Annual Report Download - page 64

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 25
4. Basis of Presentation and Summary of Significant Accounting Policies (continued)
accelerated over five years, $40.3 million for the East River Tunnel is being accelerated over
11 years, and $16.0 million for the North River Tunnel is being accelerated over 17 years. The
acceleration of depreciation expense increased the Company’ s net loss during the year ended
September 30, 2013 by $39.7 million.
Asset Retirement Obligations
The Company accounts for asset retirement obligations (“AROs”) in accordance with FASB
ASC Topic 410, Asset Retirement and Environmental Obligations. The standard applies to legal
obligations associated with the retirement of long-lived assets that result from the acquisition,
construction, development and/or normal use of the asset. In accordance with FASB ASC Topic
410, the Company recognizes the fair value of the ARO in the period in which it is incurred, if a
reasonable estimate of fair value can be made. The fair value of the obligation is estimated when
the Company obtains sufficient information about the timing and or method of settlement.
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, 2013 and 2012, the actuarial reserve for casualty
losses and claims was $190.2 million and $190.0 million, respectively. Of the total amount
reserved as of September 30, 2013 and 2012, the estimated current claims liability included in
“Accrued expenses and other current liabilities” in the Consolidated Balance Sheets was
$57.3 million and $53.1 million, respectively. The balance of the reserve as of both
September 30, 2013 and 2012 is included in “Casualty reserves” in the Consolidated Balance
Sheets.