This spreadsheet supports STUDENT analysis of the case, "AMTRAK: Acela

Financing" (Case 37)

Copyright © 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised: December 2, 2005
 Exhibit 2
Amtrak: Acela Financing
Income Statement
(in millions of dollars)
Fiscal Year Ending September 30
1994 1995 1996
Revenues
Passenger related and other $1,152 $1,177 $1,213
Commuter 184 213 234
Reimbursable 77 107 108
Federal payments - - -
Total revenues $1,413 $1,497 $1,555

Expenses
Salaries, wages, and benefits $1,330 $1,241 $1,236
Train operations 358 321 321
Facility and office related 153 172 181
Maintenance-of-way goods and services 45 73 59
Advertising and sales 91 90 109
Interest 185 144 149
Depreciation and amortization 245 230 238
Other 83 34 25
One-time charges/(gains) (244) - -
Total expenses 2,246 2,305 2,318

Operating income/(loss) ($833) ($808) ($763)

Exclude federal payments and related interest

Operating loss restated ($833) ($808) ($763)

Federal Grants:
Federal operating grant $352 $392 $285
Excess railroad retirement taxes 150 150 120
Federal capital - interest - - -
Federal capital - progressive overhaul and other - - 36
Total federal grants $502 $542 $441

Net loss ($331) ($266) ($322)

Source of data: Amtrak annual report.

Ending September 30
1997 1998

$1,341 $1,392
242 260
91 91
- 542
$1,674 $2,285

$1,299 $1,448
365 356
187 190
46 52
98 102
160 181
242 294
39 15
- -
2,436 2,638

($762) ($353)

577

($762) ($930)

$223 $202
142 142
42 -
37 82
$444 $426

($318) ($504)
 Exhibit 3
Amtrak: Acela Financing
Balance Sheet
(in millions of dollars)
FY Ending
ASSETS Sept. 30, 1998
Current assets
Cash and equivalents $274.7
Temporary cash investments 409.7
Accounts receivable, net 88.7
Materials and supplies 91.6
Other current assets 3.4
Total current assets 868.1
Property, plant, and equipment 9,456.4
Less accumulated depreciation (3,106.9)
Net property, plant, and equipment 6,349.5
Other assets and deferred charges 87.6
Total assets $7,305.3
LIABILITIES AND CAPITALIZATION
Current liabilities
Accounts payable $270.8
Accrued expenses and other current liabilities 186.7
Deferred ticket revenue 61.4
Current maturities of long-term debt and capital-lease obligations 102.2
Total current liabilities 621.1
Long-term debt and capital lease obligations
Capital-lease obligations 1,213.1
Equipment and other debt 322.5
1,535.6
Other liabilities and deferred credit
Deferred federal payments 457.0
Casualty reserves 136.2
Postretirement employee-benefits obligation 118.4
Environmental reserve 35.4
Advances from railroads and commuter agencies 20.6
Other 1.5
769.1
Total liabilities 2,925.8
Capitalization
Preferred stock 10,939.7
Common stock 93.9
Other paid-in capital 6,471.3
Accumulated comprehensive loss (13,125.4)
4,379.5
Total liabilities and capitalization $7,305.3
 Lessee
Amtrak

Equipment Lease Payments

Owner Trustee
Equity investors put up $53.6 Wilmington Trust
million (20% of equipment
value) in exchange for lease
payments after debt service.

Equity Investor Lender

BNY Capital Funding, Export Development
LLC Corporation (EDC) of
Canada
 Lenders advance $214.3 million (80%
of equipment value) in exchange for
first claim on lease payments on
locomotives and trainsets.

Lender
ort Development
oration (EDC) of
Canada
 Exhibit 5
Amtrak: Acela Financing
BNY Capital Funding LLC’s Proposed Lease Payment Schedule
(In dollars)

Date Due Amount

1999 June $ -
Dec. 200,102
2000 June 3,761,228
Dec. 7,965,652
2001 June 10,022,594
Dec. 10,316,948
2002 June 8,617,634
Dec. 10,360,645
2003 June 9,828,570
Dec. 10,367,985
2004 June 8,607,823
Dec. 10,418,573
2005 June 9,683,063
Dec. 10,435,186
2006 June 8,580,151
Dec. 11,599,993
2007 June 7,338,339
Dec. 11,468,211
2008 June 9,475,208
Dec. 15,792,709
2009 June 7,765,741
Dec. 20,224,322
2010 June 5,067,035
Dec. 15,872,556
2011 June 4,121,823
Dec. 22,807,129
2012 June 3,336,587
Dec. 23,645,133
2013 June 2,662,913
Dec. 24,055,367
2014 June 1,957,919
Dec. 20,017,608
2015 June 6,067,613
Dec. 6,287,652
2016 June 12,292,315
Dec. 21,394,788
2017 June 6,551,924
Dec. 18,107,167
2018 June 8,612,133
Dec. 13,469,295
2019 June 8,864,543
Dec. 6,654,238
2020 June 2,035,748
Dec. 1
 Exhibit 6
Amtrak: Acela Financing
7-Year MACRS Schedule
(figures in percent of depreciable investment)

Year % Depreciated
1 14.29
2 24.49
3 17.49
4 12.49
5 8.93
6 8.93
7 8.93
8 4.45