Amtrak 2014 Annual Report Download - page 19

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 11
3. Basis of Presentation and Summary of Significant Accounting Policies
Method of Accounting
The accompanying consolidated financial statements are presented using the accrual basis of
accounting in accordance with accounting principles generally accepted in the United States of
America.
Principles of Consolidation
The Consolidated Financial Statements reflect the consolidated operations of Amtrak and its
three wholly owned subsidiaries, Chicago Union Station Company (CUS), Passenger Railroad
Insurance, Limited (PRIL), and Penn Station Leasing, LLC (PSL); and its 99.9% interest in
Washington Terminal Company (WTC). All significant intercompany balances and transactions
have been eliminated.
CUS was incorporated on July 3, 1913 as the Union Station Company, for the purpose of
constructing, operating and maintaining a new railroad terminal in the City of Chicago. The
name was officially changed to Chicago Union Station Company on May 7, 1915. Amtrak
acquired 50% stock ownership interest in CUS in 1976 as part of the conveyance of the
Northeast Corridor (NEC) and off-Corridor properties. Amtrak purchased the remaining 50%
stock ownership in 1984. CUS’ s business is comprised of the following segments: provision of
right of way and station access and use to intercity and commuter services; and lease and
licensing of station space for retail services, display advertising, special events and other
commercial uses.
PRIL was incorporated on December 18, 1996 under the laws of Bermuda to provide excess
liability and property insurance coverage to Amtrak.
PSL was formed on April 17, 2001 to acquire from Amtrak and sublet back to Amtrak the
leasehold estate in a portion of the real property and improvements located in the City and State
of New York, commonly known as Penn Station.
WTC was formed on December 6, 1901 and is comprised of buildings and the rail yard adjacent
to Washington Union Station. WTC provides switching services for passenger trains using the
station or passing through the area.