Amtrak 2014 Annual Report Download - page 44

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 36
7. Leasing Arrangements (continued)
Operating Rights and Leases
As of September 30, 2014, Amtrak is obligated for the following minimum rental payments
under operating rights and lease agreements (in thousands):
Year ending September 30,
2015 $ 16,610
2016 14,321
2017 13,504
2018 11,034
2019 7,711
Thereafter 30,693
Total $ 93,873
Rent expense for FY2014 and FY2013 was $53.3 million and $54.6 million, respectively and is
included in “Facility, communication and office related” expenses in the Consolidated
Statements of Operations.
Amtrak lease offices, operating areas, stations and other terminal space. These leases often
contain renewal options to enable the Company to retain the use of facilities. Some of the leases
contain escalation clauses that increase the rents based on a fixed or variable rate, such as an
inflation factor index. Under certain leases, the Company is obligated to pay additional amounts
based on the facility’ s operating expenses.
Most of the rights-of-way over which Amtrak operates are owned by other railroads. Amtrak
uses such trackage under contracts with these railroads. The terms of the agreements range up to
six years, although they may remain in effect longer if neither party seeks to renegotiate. Costs
incurred are based on usage. The total amount incurred for use of the other railroads’ rights-of-
way during FY2014 and FY2013, totaled $89.5 million and $131.4 million, respectively, and are
included in “Train operations” in the Consolidated Statements of Operations.