[Code of Federal Regulations]
[Title 49, Volume 9]
[Revised as of October 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR1201]
[Page 11-139]
TITLE 49--TRANSPORTATION
CHAPTER X--SURFACE TRANSPORTATION BOARD, DEPARTMENT OF TRANSPORTATION
(Continued)
PART 1201_RAILROAD COMPANIES--Table of Contents
Subpart A_Uniform System of Accounts
Source: 42 FR 35017, July 7, 1977, unless otherwise noted.
List of Instructions and Accounts
REGULATIONS PRESCRIBED--Table of Contents
(i) Regulations prescribed. Carriers by railroad subject to
provisions of the Interstate Commerce Act and not independently operated
as electric lines, and each lessor of such a carrier, shall comply with
regulations in this part as presented hereinafter.
(ii) Definitions.
1. Abandonment means the withdrawal from transportation service of a
branch line or other track segment or facility, representing a permanent
reduction in plant.
2. Accounts means the accounts prescribed in this system of
accounts.
3. Actually issued as applied to funded debt securities or capital
stock issued or assumed by the company, means those which have been sold
to bona fide purchasers or holders for a valuable consideration
(including those issued in exchange for other securities or other
property) and such purchasers or holders secured them free from control
by the carriers. Also securities issued as dividends on stock.
4. Actually outstanding as applied to funded debt securities or
capital stock issued or assumed by the carrier means those which have
been actually issued and are neither retired and canceled nor reacquired
and held by or for the accounting company.
5. (a) Affiliated companies means companies or persons that
directly, or indirectly through one or more intermediaries control, or
are controlled by, or are under common control with, the accounting
carrier.
(b) Control (including the terms controlling, controlled by, and
under common control with) means the possession directly or indirectly,
of the power to direct or cause the direction of the management and
policies of a company, whether such power is exercised through one or
more intermediary companies, or alone, or in conjunction with, or
pursuant to an agreement, and whether such power is established through
a majority of minority ownership or voting of securities, common
directors, officers or stockholders, voting trusts, holding trusts,
associated companies, contract or any other direct or indirect means.
6. Amortization means the gradual extinguishment of an amount in an
account by distributing such amount over a fixed period dependent on the
requirements of regulatory bodies, over the life of the asset or
liability to which it applies, or over the period during which it is
anticipated the benefit will be realized.
7. Carrier as used herein and when not otherwise indicated in the
context means any carrier to which this system of accounts is
applicable.
8. Consolidation means the formation of a new company. See
instruction 2-15.
9. Board means the Surface Transportation Board.
10. Compensating balance means the portion of any demand deposit (or
any time deposit or certificate of deposit) maintained by a carrier (or
by any person on behalf of the carrier) which constitutes support for
existing borrowing arrangements of the carrier with a lending
institution. Such arrangements include both outstanding borrowings and
the assurance of future credit availability. (The compensating balance
requirement should be adjusted by the amount of float unless such
adjustment would cause the compensating
[[Page 12]]
balance to be greater than the cash balance per carrier's books.) The
float adjustment is made by subtracting the float from the compensating
balance requirement if the collected bank ledger balance exceeds the
cash balance per carrier's books or by adding the float to the
compensating balance requirement if the collected bank ledger balance is
less than the cash balance per carrier's books.
(a) Float means deposits and withdrawals in transit which constitute
a difference between the collected bank ledger balance and the cash
balance per carrier's books.
11. Cost center refers to an organizational subdivision for which
cost data are desired and for which provision is made to accumulate
costs such as a terminal, yard, or track segment. A cost center may
correspond to a given area of responsibility for which costs are
presently accumulated for planning and control. A cost center is the
smallest segment of activity or area of responsibility for which costs
are accumulated and directly traceable.
12. Cost of renewal means the cost of additional material applied
(other than the value assigned second-hand parts remaining in the
rebuilt unit) plus the cost of labor used in the rebuilding process,
exclusive of the portion applicable to dismantling and repair of old
parts reused.
13. Cost of removal means cost of demolishing, dismantling, tearing
down or otherwise removing property.
14. Debt issue cost means all costs in connection with the issuance
and sale of evidences of debt, such as fees for drafting mortgages and
trust deeds; fees for issuing or recording evidences of debt; cost of
engraving and printing bonds and certificates of indebtedness; fees paid
trustees, specific costs of obtaining governmental authority; fees for
legal services; fees and commissions paid underwriters, brokers and
salespeople for marketing such evidences for debt; fees and costs of
listing on exchanges; and other like costs.
15. Discount as applied to funded debt securities or capital stock
issued or assumed by the carrier, means the excess of the par or face
value of the securities plus interest or dividends accrued at the date
of the sale over the cash value of the consideration received from their
sale.
16. Equity security encompasses any instrument representing
ownership shares (e.g., common, preferred and other capital stock), or
the right to acquire (e.g., warrants, rights, and call options) or
dispose of (e.g., put options) ownership shares in an enterprise at
fixed or determinable prices. The term does not encompass preferred
stock that by its terms either must be redeemed by the issuing
enterprise or is redeemable at the option of the investor, nor does it
include treasury stock or convertible bonds.
(a) Marketable, as applied to an equity security, means an equity
security as to which sales prices or bid and ask prices are currently
available on a national securities exchange (i.e., those registered with
the Securities and Exchange Commission) or in the over-the-counter
market. In the over-the-counter market, an equity security shall be
considered marketable when a quotation is publicly reported by the
National Association of Securities Dealers Automatic Quotations System
or by the National Quotations Bureau, Inc. (provided, in the latter
case, that quotations are available from at least three dealers). Equity
securities traded in foreign markets shall be considered marketable when
such markets are of a breadth and scope comparable to those referred to
above. This definition is not met by restricted stock (securities for
which sale is restricted by a governmental or contractual requirement
except where such requirement terminates within one year or where the
holder has the power to cause the requirement to be met within one
year). Any portion of the stock which can reasonably be expected to
qualify for sale within one year, such as may be the case under Rule 144
or similar rules of the Securities and Exchange Commission, is not
considered restricted.
(b) Market value refers to the aggregate of the market price of a
single share or unit times the number of shares or units of each
marketable equity security in the portfolio. When an equity has taken
positions involving short sales, sales of calls, and purchases of puts
for marketable equity securities and the same securities are
[[Page 13]]
included in the portfolio, those contracts shall be taken into
consideration in the determination of market value of the marketable
equity securities.
(c) Cost, as applied to a marketable equity security, refers to the
original cost unless a new cost basis has been assigned based on
recognition of an impairment of value that was deemed other than
temporary or as the result of a transfer between current and noncurrent
classifications. In such cases, the new cost basis assigned shall be
considered cost.
17. (a) Income taxes means taxes based on income determined under
provisions of the United States Internal Revenue Code and foreign, state
and other taxes (including franchise taxes) based on income.
(b) Income tax expense means the amount of income taxes (whether or
not currently payable or refundable) allocable to a period in the
determination of net income.
(c) Pretax accounting income means income or loss for a period,
exclusive of related income tax expense.
(d) Taxable income means the excess of revenues over deductions or
the excess of deductions over revenue to be reported for income tax
purposes for a period.
(e) Timing differences means differences between the periods in
which transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income. Timing
differences originate in one period and reverse or turn around in one or
more subsequent periods. Some timing differences reduce income taxes
that would otherwise be payable currently; others increase income taxes
that would otherwise be payable currently.
(f) Permanent differences means differences between taxable income
and pretax accounting income arising from transactions that, under
applicable tax laws and regulations, will not be offset by corresponding
differences or turn around in other periods.
(g) Tax effects means differentials in income taxes of a period
attributable to (1) revenue or expense transactions which enter into the
determination of pretax accounting income in one period and into the
determination of taxable income in another period, (2) deductions or
credits that may be carried backward or forward for income tax purposes
and (3) adjustments of prior periods and direct entries to other
stockholders' equity accounts which enter into the determination of
taxable income in a period but which do not enter into the determination
of pretax accounting income of that period. A permanent difference does
not result in a tax effect as that term is used in this definition.
(h) Deferred taxes means tax effects which are deferred for
allocation to income tax expense of future periods.
(i) Interperiod tax allocation means the process of apportioning
income taxes among periods.
(j) Tax allocation within a period means the process of apportioning
income tax expenses applicable to a given period between income before
extraordinary items and extraordinary items, and of associating the
income tax effects of adjustments of prior periods and direct entries to
other stockholders' equity accounts with these items.
18. (a) Investor means a business entity that holds an investment in
voting stock of another company.
(b) Investee means a corporation that issued voting stock held by an
investor.
(c) Corporate joint venture is a company owned and operated as a
separate and specific business or project for the mutual benefit of the
members of the group. Joint facilities for purposes of this system of
accounts are not considered corporate joint ventures.
(d) Dividends when applied to distributions received from investees
unless otherwise specified, means dividends received or receivable in
cash, other assets, or another class of stock and does not include stock
dividends or stock splits.
(e) Earnings or losses of an investee and financial position of an
investee refer to net income (or net loss) and financial position of an
investee determined in accordance with generally accepted accounting
principles.
(f) Undistributed earnings of an investee means net income less
dividends declared whether received or not.
[[Page 14]]
(g) Date of acquisition is the date on which the investor assumes
the rights of ownership. Ordinarily, this is the date assets are
received and other assets are given or securities issued.
19. Joint facility means any owned or leased carrier operating
property occupied or operated jointly by the carrier and one or more
other carriers, under an arrangement whereby the cost and income are
apportioned to the parties to the joint agreement. Portions of a
structure or other property used exclusively by each of two or more
carriers are not joint facilities.
20. Ledger value of an account means the undepreciated or
unamortized cost of acquisition of the item to the carrier, recorded in
the general ledger. In case the cost of any item of property is not
shown separately in the ledger, the ledger value of that item shall be
its proportionate share of the value of the entire group in which the
particular property is included.
21. Merger means the acquisition of one company by another. See
instruction 2-15.
22. Minor items of property means the associated parts or items of
which units of property are composed.
23. Net railway operating income: Operating revenue remaining after
deducting operating expenses, income taxes on ordinary income, and the
provision for deferred income taxes. Also, in arriving at NROI, deduct
the Income from Lease of Road and Equipment and add the Rent for Leased
Road and Equipment, formerly accounts 509 and 542, respectively.
24. Net salvage value means salvage value of property retired less
the cost of removal.
25. Nominally issued as applied to funded debt securities or capital
stock issued or assumed by the carrier, means those which have been
signed, certified by trustees, or otherwise executed, and placed with
the proper officer for sale and delivery, or pledged, or otherwise
placed in some special fund of the accounting company, but which have
not been sold or issued directly to the trustees of such fund in
accordance with contractual requirements.
26. Nominally outstanding as applied to funded debt securities or
capital stock issued or assumed by the carrier, means those which, after
being actually issued, have been reacquired by or for the accounting
company under such circumstances which require them to be considered as
held alive and not retired and canceled.
27. Premium as applied to funded debt securities or capital stock
issued or assumed by the carrier, means the excess of the cash value of
the consideration received from their sale over the sum of their par
(stated value of no par stock) or face value and interest or dividends
accrued at the date of sale.
28. Programmed track replacements are costs incurred as part of a
track replacement program or planned expenditures. Programmed track
replacements are generally performed by relatively large work gangs
which, on the basis of programmed and authorized work orders, use heavy
mechanized equipment to replace rail, ties and other track material. For
guidance on what not to capitalize, see the notes to the text of
Accounts 8, 9 and 11.
29. Property retired means units of property which have been
removed, sold, abandoned, destroyed, or which for any cause have been
permanently withdrawn from service; also minor items of property not
replaced.
30. Rail Transportation Property. Rail transportation property is
all property and other assets, irrespective of ownership, that comprise
the entire operating unit devoted to rail transportation service. This
definition comprises the following accounts:
701 Cash
703 Special deposits
704 Loans and notes receivable
705 Accounts receivable--interline and other balances
706 Accounts receivable--customers
707 Accounts receivable--other
708.5 Receivable with affiliated companies
709 Accrued accounts receivable
710 Working funds
711 Prepayments
712 Material and supplies
713 Other current assets
714 Deferred income tax charges
731 Road and equipment property
732 Improvements on leased property
31. Salvage value means the amount received from the sale of
operating property retired less any expenses in connection with the sale
or in preparing the property for sale. If the
[[Page 15]]
property is retained for reuse, the salvage value shall be recorded in
account 712, Materials and Supplies, or other appropriate account at an
amount not to exceed its recorded cost (actual or average), or current
market value, whichever is lower.
32. Segment of a business refers to a component of an entity whose
activities represent a separate major line of business or class of
customer. A segment may be in the form of a subsidiary, a division, or a
department, and in some cases a joint venture or other non-subsidiary
investee, provided that its assets, results of operations, and
activities can be clearly distinguished, physically and operationally
and for financial reporting purposes, from the other assets, results of
operations, and activities of the entity. The fact that the results of
operations of the segment being sold or abandoned cannot be separately
identified strongly suggests that the transaction should not be
classified as a disposal of a segment of business.
(a) Measurement date means the date on which the management having
authority to approve the action commits itself to a formal plan to
dispose of a segment of the business, whether by abandonment or sale.
The measurement date for disposals requiring Commission approval shall
be the service date of the Order authorizing the disposal.
(b) Disposal date refers to the date of closing the sale, if the
disposal is by sale or the date that operations cease if the disposal is
by abandonment.
33. Service life means the period between the date when operating
property is placed in service and the date of its retirement.
34. Service value means the ledger value of operating property less
its salvage value (see definition 17).
35. Track maintenance is material and labor costs of routine track
repairs such as sporadic tie replacement, repair of broken rails,
tightening track bolts and track spikes. A more complete list of
maintenance items are included in notes to the text of Accounts 8, 9 and
11.
36. Work equipment means equipment which can be coupled in a train
for movement over the carrier's tracks, and which is used in the
carrier's work service. See equipment listing for account 57, Work
equipment.
[42 FR 35017, July 7, 1977, as amended at 44 FR 3493, Jan. 19, 1979; 45
FR 31110, May 12, 1980; 48 FR 7183, Feb. 18, 1983; 48 FR 33718, July 25,
1983; 49 FR 2254, Jan. 19, 1984; 52 FR 4321, Feb. 11, 1987]
GENERAL INSTRUCTIONS--Table of Contents
1-1 Classification of carriers. (a) For purposes of accounting and
reporting, carriers are grouped into the following three classes:
Class I: Carriers having annual carrier operating revenues of $250
million or more after applying the railroad revenue deflator formula
shown in Note A.
Class II: Carriers having annual carrier operating revenues of less
than $250 million but in excess of $20 million after applying the
railroad revenue deflator formula shown in Note A.
Class III: Carriers having annual carrier operating revenues of $20
million or less after applying the railroad revenue deflator formula
shown in Note A.
(b)(1) The class to which any carrier belongs shall be determined by
annual carrier operating revenues after the railroad revenue deflator
adjustment. Families of railroads operating within the United States as
a single, integrated rail system will be treated as a single carrier for
classification purposes. Upward and downward reclassification will be
effected as of January 1 in the year immediately following the third
consecutive year of revenue qualification.
(2) If a Class II or Class III carrier's classification is changed
based on three years' adjusted revenues the carrier shall complete and
file the Classification Index Survey Form with the Board by March 31 of
the year following the end of the period to which it relates.
(3) Newly organized carriers shall be classified on the basis of
their annual carrier operating revenues after railroad revenue deflator
adjustment for the latest period of operation. If actual data are not
available, new carriers shall be classified on the basis of their
carrier operating revenues known and estimated for a year (after
railroad revenue deflator adjustment).
[[Page 16]]
(4) When a business combination occurs, such as a merger,
reorganization, or consolidation, the surviving carrier shall be
reclassified effective January 1 of the next calendar year on the basis
of the combined revenue for the year when the combination occurred
(after railroad revenue deflator adjustment).
(5) In unusual circumstances, such as partial liquidation and
curtailment or elimination of contracted services, where regulations
will unduly burden the carrier, the carrier may request the Board for an
exception to the regulations. This request shall be in writing
specifying the conditions justifying an exception.
(c) Class I carriers shall keep all of the accounts of this system
which are applicable to their operations. Class II and III carriers are
not required to maintain the accounts of this system.
(d) All switching and terminal companies, regardless of their
operating revenues will be designated Class III carriers.
(e) Unless provided for otherwise, all electric railway carriers,
regardless of operating revenues, will be designated Class III carriers.
Note A: The railroad revenue deflator formula is based on the
Railroad Freight Price Index developed by the Bureau of Labor
Statistics. The formula is as follows:
Current Year's Revenues x (1991 Average Index/Current Year's Average
Index)
Note B: See related regulations 49 CFR 1241.15 Railroad
classification survey form.
[57 FR 27185, June 18, 1992; 57 FR 31754, July 17, 1992; 66 FR 56245,
Nov. 7, 2001; 67 FR 57533, Sept. 11, 2002]
1-2 Classification of accounts. (a) Accounts are prescribed to cover
cost of property used in transportation operations and operations
incidental thereto and for revenues, expenses, taxes, rents, and other
items of income for such operations. Separate accounts are prescribed
for investment in property not used in transportation operations and for
other investments and income therefrom; for unusual and infrequent
items; for operations and disposal of discontinued segments; for
extraordinary items and accounting changes; and for assets, liabilities
and capital includable in the balance sheet statement. Retained earnings
accounts form the connecting link between the income account and the
equity section of the balance sheet. They are provided to record the
transfer of net income or loss for the year; certain capital
transactions; and, when authorized by the Board, other items.
(b) The cost of property, and the revenues, expenses, taxes and
rents for miscellaneous operations involving the use of such facilities
as hotels, restaurants, grain elevators, storage warehouses, power
plants, cold storage plants, etc., shall not be included in the accounts
prescribed for transportation operations unless the operation of the
facilities is conducted by the railway companies in connection with
furnishing transportation services. Likewise, the cost of property, the
revenues, expenses, taxes, and rents arising from the operation of
stockyards shall not be included in accounts prescribed for
transportation operations unless operation of the facilities is
conducted in connection with transportation of livestock. It is not
intended that cost of property and income arising from incidental public
stockyards service rendered by stockyards primarily devoted to
transportation services shall be excluded from transportation operation
accounts.
(c) Joint facility accounts are provided for the joint users of
tracks, bridges, yards, wharves, stations, and other facilities in which
to record items in settlement for use of such facilities. When the
compensation for the use of facilities is a fixed amount or is based
upon a charge per passenger, ton, car or other unit, the amount shall be
fairly apportioned by the operating company among the joint facility
operating expense and income accounts. The creditor shall show the
distribution of these charges upon its bills, and such distribution
shall be adhered to by the debtor. Train service in connection with the
line haul of traffic, including that operated under a joint arrangement
for the benefit of two or more carriers, is not considered a joint
facility operation.
(d)(1) Extraordinary Items. All items of profit and loss recognized
during the year are includable in ordinary income unless evidence
clearly supports their classification as extraordinary items.
[[Page 17]]
Extraordinary items are characterized by both their unusual nature
and infrequent occurrence taking into account the environment in which
the firm operates; they must also meet the materiality standard.
Unusual means the event or transaction must possess a high degree of
abnormality and be of a type clearly unrelated to, or only incidentally
related to the ordinary and typical activities of the entity.
Infrequent occurrence means the event or transaction shall be of a
type not reasonably expected to recur in the foreseeable future.
(2) Unusual or Infrequent Items. Material events unusual in nature
or infrequent in occurrence but not both, thus not meeting both criteria
for classification as extraordinary, shall be includable in the accounts
provided as separate components of income/expense from continuing
operations.
(3) Discontinued Operations. The results of continuing operations
shall be reported separately from discontinued operations and any gain
or loss resulting from disposal of a segment of a business (see
definition 23(a)) shall be reported in conjunction with the related
results of discontinued operations and not as an extraordinary item. The
disposal of a segment of a business shall be distinguished from other
disposals of assets incident to the evolution of the entity's business,
such as the disposal of part of a line of business, the shifting of
production or marketing activities for a particular line of business
from one location to another, the phasing out of a product line or class
of service, and other changes occasioned by technological improvements.
If a loss is expected from the proposed sale or abandonment of a
segment, the estimated loss shall be provided for at the measurement
date (see definition 23(b)). If a gain is expected, it shall be
recognized when realized, which ordinarily is the disposal date (see
definition 23(c)).
(4) Prior period adjustments. Only the following two items of profit
and loss shall be accounted for and reported as prior period adjustments
and excluded from the determination of net income for the current
period:
(1) Correction of an error in the financial statements of a prior
period, and
(2) Adjustments that result from realization of income tax benefits
of preacquisition operating loss carryforwards of purchased
subsidiaries.
With the exception of the two items just mentioned, all items of
profit and loss recognized during a period shall be included in the
determination of net income for that period.
Note: The carrier shall follow generally accepted accounting
principles where an interpretation of the rules is needed or obtain an
interpretation from its public accountant or the Board.
(5) Accounting Changes. Errors in financial statements result from
mathematical mistakes, mistakes in the application of accounting
principles, or oversight or misuse of facts that existed at the time the
financial statements were prepared. In contrast, a change in an
accounting estimate results from new information or subsequent
developments and from better insight or judgment. Correction of an error
should be accomplished through a prior period adjustment [See
Instruction 1-2(d)(4)]. Changes in an accounting estimate should be
accounted for in the period of change (and future period if the change
affects both)(See Instruction 1-7). A change in an accounting principle
or accounting entity should be referred to this Board for approval. The
cumulative effect of a change in accounting principle should ordinarily
be reflected in the account provided for in determining net income.
(6) Materiality. As a general standard an item shall be considered
material when it exceeds 10 percent of annual income (loss) before
extraordinary items. An item may also be considered in relation to the
trend of annual earnings before extraordinary items or other appropriate
criteria. Items shall be considered individually and not in the
aggregate in determining materiality. However, the effects of a series
of related transactions arising from a single specific and identifiable
event or plan of action shall be aggregated to determine materiality.
(7) Board Approval and Accountant's Letter. Items shall be included
in the accounts provided for extraordinary
[[Page 18]]
items, unusual or infrequent items, discontinued operations, prior
period adjustments and cumulative effect of changes in accounting
principles only upon approval of the Board. If the carrier retains the
service of an independent accountant, a request for using these accounts
shall be accompanied by a letter from the independent accountant
approving or otherwise commenting on the request.
Note: The carrier may refer to generally accepted accounting
principles for further guidance in applying paragraph (d) above.
[42 FR 35017, July 7, 1977 as amended at 43 FR 37455, Aug. 23, 1978; 52
FR 4321, 4324, Feb. 11, 1987]
1-3 Records. (a) Each carrier shall keep its books of account, and
all other books, records, and memoranda which support the entries in
such books of account so as to be able to furnish readily full
information as to any item included in any account. Each entry shall be
supported by such detailed information as will permit ready
identification, analysis, and verification of all facts relevant
thereto.
(b) All expenditures including the expense accounts of officers and
employees shall be supported by vouchers, payrolls, receipted bills,
canceled checks, receipts for petty cash payments, or other evidences of
the expenditures incurred.
(c) The books referred to herein include not only books of accounts
in a limited technical sense but all other records such as minute books,
stock books, reports, correspondence, memoranda, etc., which will be
useful in developing the history of or facts regarding any transaction.
(d) No carrier shall destroy any books, records, memoranda, etc.,
which support entries to its accounts unless destruction is permitted by
the regulations governing preservation of records, Part 1220 of this
chapter.
(e) In addition to prescribed accounts, clearing accounts, temporary
accounts, and subdivisions of any accounts may be kept, provided the
integrity of the prescribed accounts is not impaired.
(f) Cost detail shall be maintained by cost centers for purposes of
cost assignments effective 1-1-79. This provides for cost control and
cost planning at any designated area of responsibility. These cost
centers shall be similarly defined as the railroads' existing
responsibility centers. Cost center information shall therefore be kept
at the same level of detail presently collected, categorized, and
maintained in railroad internal managerial accounting systems. This
detailed information shall not be reported to the Board on an ongoing
basis. However, the carrier shall keep the detailed information to
provide a ready analysis and verification of the costs collected by cost
center.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987; 61
FR 9113, Mar. 7, 1996]
1-4 Accounting period. (a) Each carrier shall keep its books on a
monthly basis so that known transactions, as nearly as may be
ascertained, shall be entered in the accounts not later than 60 days
after the last day of the period for which the accounts are stated,
except that the time within which the final entries for the year ending
December 31 shall be made may be extended to such date in the following
March as shall not interfere with the preparation and filing of annual
report.
(b) A trial balance of the general ledger accounts shall be prepared
at the close of each month setting out the account number, title, and
amount of each ledger account. (Mechanical, electronic or automatic data
processing printout documentation producing the equivalent of manually
prepared trial balances shall identify balances by account numbers.) At
the end of the calendar year, the revenue, expense, and other income
accounts shall be closed into retained earnings account, and the balance
sheet account balances shall be brought forward to the general ledger
for the succeeding year.
(c) No changes shall be made in the accounts for periods covered by
quarterly and annual reports that have been filed with the Board unless
the changes have first been authorized by the Board.
1-5 Accrual method of accounting. The accounting for operating
revenues, operating expenses, income and other items each month and year
shall be, as nearly as practicable, upon the basis of accruals
consistently applied. Any change in practice of accounting for
[[Page 19]]
accruals or any unusual accruals involving material amounts shall be
reported promptly to the Board.
1-6 Charges to be just and reasonable. All charges to the accounts
prescribed in this system of accounts for carrier property, operating
revenues, operating and maintenance expenses, and other carrier
expenses, shall be just, reasonable and not exceed amounts necessary to
the honest and efficient operation and management of carrier business.
Payments shall not exceed the fair market value of goods and services
acquired in an arm's length transaction. Any payments in excess of such
just and reasonable charges shall be included in account 551,
Miscellaneous income charges.
1-7 Changes in accounting estimates. Changes in accounting estimate
arising during the current year which are applicable to prior years
shall be included in the same account which would have been charged or
credited if the item had been taken up or the adjustment made in the
year to which it pertained. [See Instruction 1-2(d)(5) for Accounting
Changes].
[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987]
1-8 Accounting for computer systems and word processing costs. (a)
Capitalized costs for computer systems and word processing equipment
shall be charged to property account 59, when such costs are not
dedicated to a particular function (See Account 59). Related
depreciation expenses for capitalized costs shall be charged to account
62-23-00, Depreciation, Other Equipment.
(b) Repair and maintenance costs related to computer systems and
word processing equipment shall be charged to function 46 of the Other
equipment subactivity by appropriate natural expense (labor, material,
purchased services, other). Repairs performed by an outside company
shall be charged to operating expense account 39-23-46.
(c) Operating costs related to computer systems and word processing
equipment shall be charged to function 87, Management services and data
and word processing, when the equipment benefits more than one activity.
When the equipment benefits one activity only, such operating costs
shall be charged to the activity/function benefited.
[52 FR 4324, Feb. 11, 1987]
1-9 Transactions with affiliated companies. (a) The records and
supporting data of all transactions with affiliated companies shall be
maintained in a separate file. The types of transactions referred to in
this paragraph are for management services or any other type of services
rendered, sale or use of facilities or any other type of assets or
property. The file shall be maintained so as to enable the carrier, upon
a Board request, to furnish accurate information with supporting
documentation about particular transactions within 15 days of the
request. We do not intend the file to include data relating to ordinary
carrier operations (e.g. lawful tariff charges or interchange of
equipment).
(b) Each bill rendered by an affiliated company shall state
specifically the basis used for determining charges, unless the file
contains the information to support the specific basis for charges.
(c) Punched cards, magnetic tapes, discs, or other machine-sensible
devices used for recording, consolidating, and summarizing accounting
transactions and records with a carrier's electronic or automatic data
processing system may constitute a file within the meaning of this
instruction.
(d) The carrier shall record, as the cost of assets or services
received from an affiliated supplier, the invoice price (plus any
incidental costs related to those transactions) in those cases where the
invoice price can be determined from a prevailing price list of the
affiliated supplier available to the general public in the normal course
of business. If no such price list exists, the charges shall be recorded
at the lower of their cost to the originating affiliated supplier (less
all applicable valuation reserves in case of asset sales, or their
estimated fair market value determined on the basis of a representative
study of similar competitive and arm's-length or bargained transaction.
Any difference between actual transaction price and the above,
[[Page 20]]
as well as charges that are not transportation related, shall be
considered of a financing nature and shall be recorded, accordingly, as
nonoperating charges or credits. (See instruction 1-6.)
(e) Nothing contained herein shall be construed as restraining the
carrier from subdividing accounts (see instruction I-3(e)) for the
purpose of recording separately transactions with affiliated companies.
(f) Carriers reporting information on a consolidated or combined
basis in railroad Annual Report Form R-1 shall maintain a file with
appropriate records and supporting data. This shall include work sheets
showing revenues, expenses, earnings, investment in assets and
accumulated depreciation for all affiliated railroads and rail-related
affiliated companies. The work sheets shall also disclose any
eliminations. Carriers shall also disclose the methodology used to
support segregation of rail-related or other items as appropriate.
Further, a file shall be maintained to support and reconcile entity
sales, transfers and reclassifications as well as taxes deducted from
gains or losses.
[42 FR 35017, July 7, 1977, as amended at 53 FR 46620, Nov. 18, 1988]
1-10 Accounting for income taxes. (a) The interperiod tax allocation
method of accounting shall be applied where material timing differences
(see definition 17(e)) occur between pretax accounting income and
taxable income. Carriers may elect, as provided by the Revenue Act of
1971, to account for the investment tax credit by either the flow
through method or the deferred method of accounting. See paragraphs (d)
and (e) below. All income taxes (Federal, state and other) currently
accruable for income tax return purposes shall be charged to account
556, Income taxes on ordinary income, and account 590, Income Taxes on
Extraordinary Items, as applicable.
(b) Under the interperiod tax allocation method of accounting the
tax effect of timing differences (see definition 17) originating in the
current accounting period are allocated to income tax expense of future
periods when the timing differences reverse. Similar timing differences
originating and reversing in the current accounting period should be
combined into groups and the current tax rates applied to determine the
tax effect of each group. A carrier shall not apply other than current
tax rates in determining the tax effect of reversing differences except
upon approval of the Board. When determining the amount of deferred
taxes, rather than computing state and other taxes individually by
jurisdiction, the Federal income tax rate may be increased by a percent
equivalent to the effect of taxes imposed by the jurisdictions. In
classifying a deferred charge or credit as current or noncurrent a
carrier shall follow the classification criteria used for the related
asset or liability which caused the timing difference. A deferred charge
or credit that is not related to an asset or liability because (a) there
is no associated asset or liability or (b) reduction of an associated
asset or liability will not cause the timing difference to reverse shall
be classified based on the expected reversal date of the specific timing
difference. Such classification disregards any additional timing
differences that may arise and is based on the criteria used for
classifying other assets and liabilities.
(c) The future tax benefits of loss carryforwards shall normally be
recognized in the year in which such loss is applied to reduce taxes.
Only in those unusual instances when realization is assured beyond any
reasonable doubt should the future tax benefits of loss carryforwards be
recognized in the year of loss. The tax effects of any realizable loss
carrybacks shall be recognized in the determination of net income (loss)
of the loss periods; appropriate adjustments of existing net deferred
tax credits may also be necessary in the loss period.
(d) Carriers electing to account for the investment tax credit by
the flow through method shall credit account 556 Income taxes on
ordinary income, or account 590, Income taxes on extraordinary items, as
applicable, and charge account 760, Federal income taxes accrued, with
the amount of investment tax credit utilized in the current accounting
period. When the flow
[[Page 21]]
through method is followed for the investment tax credit, account 557,
Provision for Deferred Taxes, shall reflect the difference between the
tax payable (after recognition of allowable investment tax credit) based
on taxable income and tax expense (with full recognition of investment
tax credit that would be allowable based on accounting income) based on
accounting income.
(e) Carriers electing to account for the investment tax credit by
the deferred method shall concurrently with making the entries
prescribed in (d) above charge account 557, Provision for deferred
taxes, or account 591, Provision for deferred taxes--extraordinary item,
as applicable, and shall credit account 786, Accumulated deferred income
tax credits, with the investment tax credit utilized as a reduction of
the current year's tax liability but deferred for accounting purposes.
The investment tax credit so deferred shall be amortized by credits to
account 557, Provision for deferred taxes.
Note A: Any change in practice of accounting for the investment tax
credit shall be reported promptly to the Board. Carriers desiring to
clear deferred investment tax credits because of a change from the
deferral method to the flow though method shall submit the proposed
journal entry to the Board for consideration and advice.
Note B: The carrier shall follow generally accepted accounting
principles where an interpretation of the accounting rules for income
taxes is needed or obtain an interpretation from its public accountant
or the Board.
[42 FR 35017, July 7, 1977, as amended at 47 FR 12350, Mar. 23, 1982; 52
FR 4321, Feb. 11, 1987; 67 FR 57533, Sept. 11, 2002]
1-11 Items in texts of accounts. The items appearing in the texts of
the accounts or elsewhere herein are for the purpose of more clearly
indicating the application of the prescribed accounting. The items are
intended to be representative, but not exhaustive. The appearance of an
item in the text of a primary account warrants the inclusion of the item
in the account mentioned only when the whole text also indicates
inclusion inasmuch as the same item frequently appears in more than one
primary account. The proper entry in each instance must be determined by
the entire text of each primary account.
1-12 Distribution of pay and expenses of employees. (a) The pay and
expenses of officers or employees regularly assigned to specific duties
who perform incidental services of a different nature involving small
expense may be included in the appropriate expense accounts for the
duties to which such officers or employees are regularly assigned.
(b) When it is necessary to apportion the pay of officers and
employees among various accounts, the carrier shall apportion the pay on
the basis of the directly assignable pay to the various accounts.
1-13 Payroll related expenses. (a) Fringe benefits (account series
12-00-00) distributed to the activities using one of the following
techniques (in order of preference):
(1) Apply appropriate factors to the total of the fringe expense
account, in such a way as to distribute an equitable proportion of cost
to each activity. These factors shall be developed to take into account
variables such as the following:
(i) The effect of seniority on the expense. For example, profit
sharing or pensions may be available to only certain categories of
employees, which may be more predominant in one activity than another.
(ii) The effect of the type of work performed. For example,
workmen's compensation expense may vary for each category of employees
because of the rate charged or the claims experience of the category.
(iii) Any other variable which may have an appreciable effect on the
equity of the apportionment.
(2) Distribute the amount in the same proportion as the pay charged
to each activity in account series 11-00-00 (salaries and wages).
(3) Distribute the amounts using any other equitable basis which the
carrier can substantiate.
(b) All carriers shall be prepared to describe the basis of
apportionment used to distribute expenses included in this instruction.
(c) Any carrier which finds it impracticable to distribute expenses
as required by this instruction should furnish the Board with full
particulars of
[[Page 22]]
the conditions which prevent the proper distribution. Upon receipt of
such information carrier will be advised of the procedure to be
followed.
1-14 Submission of questions. To maintain uniformity of accounting,
carriers shall submit questions of doubtful interpretation to the Board
for consideration and decision.
1-15 Transfers from government authorities. When a Federal, State,
or municipal government transfers cash or other assets to a railroad,
the transaction shall be accounted for in accordance with the provisions
set forth hereunder.
(a) The following forms of government transfers shall be included in
account 502, Railway Operating Revenues--Transfers from Government
Authorities for Current Operations when received:
(1) Payments as reimbursement for operating losses sustained on a
specific line, or in a certain region. Examples include support of
commuter operations of a railroad, and local rail service assistance
subsidies granted to a railroad under authority of the Railroad
Revitalization and Regulatory Reform Act of 1976;
(2) Subsidies designated by the donor to offset operating expenses
of the railroad, and
(3) Subsidies which may be applied at the discretion of the
recipient to operating expenses and/or operating property.
(b) Government transfers relating to the acquisition, addition to,
or improvement of depreciable operating property shall be included in
account 783, Deferred Revenues--Transfers from Government Authorities
when received. Account 783 shall be periodically charged, and account
503, Railway Operating Revenues--Amortization of Deferred Transfers from
Government Authorities shall be credited with amounts equal to the
depreciation costs of the assets to which they apply.
(c) Government transfers in the form of, or designated for the
purchase of nondepreciable operating property shall be included in
account 796, Other Capital Surplus in the manner described in the text
of that account.
(d)(1) Transfers from the Federal Government to Amtrak and ConRail
relating to the acquisitions, addition to, or improvement of depreciable
or nondepreciable operating property shall be included in account 796 in
the manner described in the text of that account.
(2) Transfers from the Federal Government to Amtrak and ConRail
other than those described in paragraph (d)(1) shall be accounted for in
accordance with paragraph (a) of this section.
(e) The provisions of this section do not apply to the following
forms of government transfers:
(1) Government contributions in connection with construction
projects in which government agencies and railroads participate.
Transfers of this type shall be accounted for in accordance with the
provisions of instruction 2-17. Paragraph (b) of that instruction lists
applicable construction projects.
(2) Government payment for specific services rendered by the carrier
in transporting property or persons by rail line other than services
described in paragraph (a)(1) of this section. Such payments shall be
included in account 501, Railway Operating Revenues (Exclusive of
Transfers from Government Authorities).
(3) Government transfers relating to other than carrier operations.
(4) Government transfers in exchange for debt and/or equity
securities of recipients.
(f) Government transfers shall generally be recorded when made
available to the railroad. However, transfers relating to specific
operations shall be recorded as earned.
(g) Government transfers in the form of assets other than cash shall
be recorded at fair value when received.
[43 FR 30558, July 17, 1978, as amended at 52 FR 4321, Feb. 11, 1987]
1-16 Business entertainment expenses. (a) Business entertainment
expenses are to be accounted for as operating expenses when incurred in
conjunction with sales or marketing related activities. Sales or
marketing related activities are those that emphasize a carrier's
ability to provide efficient, timely and competitive service. These
activities include outlays designed to promote new business as well as
outlays incurred in maintaining existing
[[Page 23]]
business. The entertainment expenditures must be reasonable in relation
to the business conducted and the business purpose for the entertainment
must be adequately supported. Examples of this type of activity include
the following:
(1) Salespersons' salaries and travel expenses, advertising,
promotional and educational material;
(2) The conduct of shipper symposiums, conferences, meetings and
traffic related functions;
(3) The use of direct mail solicitations and the publication and
distribution of routing guides and service directories;
(4) Incidental promotional materials such as road atlases,
calendars, pens, scratchpads, and other materials of nominal value;
(5) The conduct of business oriented lunches and dinners, public
affairs programming, conferences and customer service calls;
(6) Sponsoring sales promotion functions, involving a number of
customers or potential customers.
It must be noted that an activity listed above is not to be
automatically accounted for as an operating expense. A carrier must be
able to justify that an activity was primarily sales or marketing
related.
(b) Business entertainment expenses are to be accounted for as non-
operating expenses when they cannot be shown to be related to the sales
or marketing activity. These are expenses that are primarily related to
recreation or to the convenience and comfort of the individuals rather
than to the transaction of business. Examples of this type of activity
include the following:
(1) Recreational or resort entertainment, including but not limited
to, fishing, hunting, tennis, golfing, skiing or other sporting or
recreational trips or outings;
(2) Expense paid transportation in any carrier owned, leased or
furnished vehicles, planes, helicopters, boats, yachts, or other
methods;
(3) Expense paid lodging in any carrier owned, leased or furnished
motels, hotels, apartments, condominiums, lodges, rooms and other places
of overnight accommodation;
(4) Paid admission to any sporting, cultural, educational,
recreational, or entertaining occurrence or event;
(5) Gifts such as athletic equipment, food or liquor, beverages of
all types, smoking materials, clothing and personal accessories;
(6) The furnishing of lunches, dinners, appetizers or beverages
where there is no true business purpose;
(7) Social occasions such as holiday parties.
It must be noted that an activity listed above is not to be
automatically accounted for as a non-operating expense. If a carrier can
justify that the activity was primarily sales or marketing related, it
may be accounted for as an operating expense.
Note: The examples listed above are not inclusive, but are intended
as a guide to give carriers an indication of what will or will not be
permitted to be recovered through the rate structure. In all instances
the burden of proof will fall on the carrier involved.
[47 FR 9467, Mar. 5, 1982, as amended at 52 FR 4321, Feb. 11, 1987]
1-17 Disclosure guideline. In addition to the accounting policies
presented in these regulations, all disclosures relating to APB Opinions
and FASB Statements adopted by the Board are required.
[52 FR 4324, Feb. 11, 1987]
1-18 Distribution of expenses for material, tools, fuel, lubricants,
purchased services and general. (a) These expenses shall be assigned
directly to activities based on usage whenever possible.
(b) When it is necessary to apportion these expenses to two or more
activities they shall be equitably apportioned only to the activities in
which they are actually used or to the activities they support.
[67 FR 57533, Sept. 11, 2002]
INSTRUCTIONS FOR PROPERTY ACCOUNTS--Table of Contents
2-1 Items to be charged. (a) To the road and equipment property
accounts shall be charged the cost of purchasing land, the cost of
purchasing and constructing buildings, facilities and equipment, and the
cost of additions and betterments to property, Cost
[[Page 24]]
means the amount of cash disbursed, or the fair value of other assets
distributed, or the present value of amounts to be paid. Where the fair
market value of resources given up (assets, services or items of
stockholder's equity) is not clearly determinable, the cost may be
determined by the fair market value of the resources acquired. The
carrier shall be prepared to furnish the Board with the particulars of
its method of determining cash value when the consideration is other
than monetary. The amount of liabilities incurred with suppliers in the
normal course of business, which are due in customary trade terms not
exceeding approximately one year, shall be recorded at the maturity
value. Acquisition date is the date title passes to the carrier.
(b) The cost of road and equipment purchased under a plan involving
other deferred payments (debt or capital lease) shall be recorded at the
discounted present value of the payment, net of executory costs such as
insurance, maintenance, and taxes. The interest rate used to discount
the payments should be the prevailing market rate for similar debt
instruments of issues with similar credit ratings. In any event, the
rate used for valuation purposes will normally be at least equal to the
rate at which the carrier can obtain financing of a similar nature from
other sources at the date of the transaction (the carrier's incremental
borrowing rate). In the case of a capital lease, when it is practical to
ascertain the implicit rate computed by the lessor, and that rate is
less than the carrier's incremental borrowing rate, the carrier should
use the implicit rate. Acquisition date for a capital lease is the date
the lease agreement is signed. If the property covered by the lease has
yet to be constructed or has not been acquired by the lessor at the date
the lease agreement or commitment is signed, the acquisition date shall
be the date the property under construction is completed or the date the
property not yet acquired is acquired by the lessor. (See Instruction 2-
20.)
(c) Where actually incurred, interest cost is to be added to the
cost of road and equipment deemed qualifying assets during the period of
time required to get them ready for their intended use (acquisition
period). Qualifying assets are those that are (1) either constructed or
otherwise produced for a carrier's own use (including assets constructed
or produced for the carrier by others for which deposits or progress
payments have been made) or (2) assets intended for sale or lease that
are constructed or otherwise produced as discrete projects. The amount
of interest to be capitalized for qualifying assets shall be based upon
the average amount of accumulated expenditures for the asset during the
acquisition period at the rate used on specific new borrowings
associated with the qualifying asset. If average accumulated
expenditures for the asset exceed the amount of specific new borrowings
associated with the asset, the rate to be applied to such excess shall
be a weighted average of the rates applicable to other borrowings of the
enterprise. The total amount of interest cost capitalized in an
accounting period shall not exceed the total amount of interest cost
incurred by the enterprise during that period.
(d) Suitable records shall be maintained showing expenditures during
the year for original road and equipment and road extensions; for merger
and purchase of existing lines and reorganizations; for additions and
betterments; and credits for property retirement.
(e) When the carrier exchanges road and equipment for other road and
equipment with no other consideration involved, the road and equipment
received shall be recorded at the ledger value of the road and equipment
relinquished. Where the carrier receives a monetary consideration in the
exchange, the carrier shall recognize gain on the exchange to the extent
that the consideration received exceeds a proportionate share of the
recorded cost of the road and equipment surrendered. The portion of the
cost applicable to the realized amount shall be based on the ratio of
the monetary consideration to the total consideration received (monetary
consideration plus the estimate fair value of the road and equipment
received) or, if more clearly evident, the fair value of the road and
[[Page 25]]
equipment transferred. Where the carrier pays a monetary consideration
in the exchange, it shall not recognize any gain on the transaction but
shall record the road and equipment received at the amount of the
monetary consideration paid plus the recorded costs of the road and
equipment surrendered. If a loss is indicated by the terms of an
exchange transaction, the carrier shall recognize the entire loss on the
exchange. Immaterial gains and losses on these exchanges shall be
included in account 519, Miscellaneous Income, or 551, Miscellaneous
Income Charges, as appropriate. Material amounts shall be recorded in
accordance with Instruction 1-2(d).
[52 FR 4324, Feb. 11, 1987]
2-2 Minimum rule applicable to additions to property. An exception
to the rule in Instruction 2-1 is that when the cost of acquisition of
units of road property and of additions to existing units of road
property (other than land and tracks) is less than $5,000, such costs
may be charged to operating expenses. This amount (rounded to the
nearest $100) will be adjusted by the June Producer Price Index for all
commodities when an aggregate adjustment is $500 or more. The revision
will be published in the Federal Register and be effective as of January
1 of the following year. The carrier shall not parcel expenditures under
a general plan bringing the accounting for such expenditures within this
minimum rule. An amount of less than the current minimum capitalization
level, for the railroad as a whole or for individual property accounts
may be adopted for purposes of this rule provided the carrier first
notifies the Board of the amount it proposes to adopt and thereafter
makes no change in the amount unless authorized by the Board. An amount
adopted shall be adhered to in reporting property changes for valuation
purposes.
[55 FR 42016, Oct. 17, 1990]
2-3 Land. (a) Accounts are provided for the cost of land used in
transportation operations and also for land used in other than
transportation operations. When land is retired from transportation
operations but is retained by the carrier the original cost (estimated,
if not known) shall be transferred to the account prescribed for
property used in other than transportation operations. It is not
contemplated that irregular parcels of land acquired in connection with
acquisition of right-of-way which have no value as commercial property
shall be thus transferred, either for the purpose of making right-of-way
boundaries run more or less regular or for the purpose of eliminating
from transportation property account the cost of unoccupied lands
between tracks in yards and terminals. When any land, the cost of which
is included in the accounts, is sold or otherwise retired, the ledger
value shall be credited to the appropriate property investment account.
The profit or loss from sale or loss from retirement or land shall be
included in the accounts prescribed for such amounts.
(b) [Reserved]
[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987]
2-4 Structures. Accounts are provided for the cost of several
classes of buildings and facilities, including fixtures permanently
attached to and made a part thereof. When a building or other structure
is used or held primarily for transportation operations and is an
integral part of the carrier's transportation plant, but a part thereof
is used or held for commercial purposes such as for rental to others or
for use in other than transportation operations by the carrier, the
entire cost of the building or other structure is includable in the
accounts for transportation property. When a building or other structure
is used or held primarily for commercial purposes or for use in other
than transportation operations by the carrier, the entire cost of the
building or structure is includable in account 737, Property used in
other than carrier operations. Reclassification of property from its
primary classification as transportation or other than transportation
property, as the case may be, to the other classification is not
required where changes in use are of a temporary nature or for a short
period of time. The accounting for costs of maintenance, taxes, other
operating
[[Page 26]]
costs, and for revenues and rentals shall be consistent with the
classification of the building or other structure.
2-5 Equipment. Accounts are provided for several classes of
equipment, such as locomotives, passenger-train cars, freight-train
cars, highway revenue equipment, work equipment, floating equipment, and
the necessary appurtenance, furniture, and fixtures first to equip for
service, including the cost of inspection, setting up, and trying out,
and transportation over foreign lines; also the cost of additions and
betterments, such as improved appliances, parts, or appurtenances. When
retired equipment is held without being torn down, the estimated value
of the salvage therefrom shall be included in account 741, Other assets,
until the salvage is recovered, except that the estimated scrap value of
retired equipment held for sale in the ordinary course of business, and
on which sale and realization of the proceeds within one year is
assured, is includable in account 713, Other current assets.
2-6 Components of construction cost. The cost of constructing
property includable in the property accounts shall include the direct
and other costs as described hereunder.
(a) Cost of labor. This includes the amount paid for labor expended
by the carrier's own employees, including the cost of labor expended for
preliminary work, such as sinking test holes or making soundings for
tunnels, grading, buildings, and other structures; and cost of labor
expended in laying and taking up tracks for temporary use in
construction, except the cost of labor expended on tracks provided for
the protection of traffic during the progress of addition and betterment
work. The cost of labor shall also include the accounting company's
expenditures for associated fringe benefits, such as vacation and
holiday pay, health and welfare group insurance, pensions and retirement
plans, payroll taxes and unemployment insurance. Office expenses and
traveling and other personal expenses of employees, when borne by the
carrier, shall be considered a part of the cost of the labor, as shall
also the cost of fidelity bonds and employer's liability insurance
premiums. When officers or employees are especially assigned to
construction work their pay and their traveling and incidental expenses
while thus engaged shall be included in the cost of the work. No charge
shall be made against road and equipment accounts for the pay of
officers and employees who merely render services incidentally in
connection with extensions, additions, or betterments, although
traveling and incidental expenses incurred by such officers and
employees solely on account of such work shall be included in the
account to which the cost of the work is chargeable.
(b) Cost of materials and supplies. This includes the purchase price
of materials and supplies, including small tools, at the point of free
delivery plus the cost of inspection and loading assumed by the carrier;
a suitable proportion of store expenses; also sales and excise taxes on
materials and supplies except as otherwise provided in the text of
account 712, Material and supplies. In calculating the cost of materials
used, proper allowance shall be made for the value of unused portions
and of cuttings, turnings, borings, etc.; for the value of the material
recovered from temporary tracks, scaffolding, cofferdams, and other
temporary structures used in construction; and for the value of small
tools recovered and used for other purposes.
(c) Cost of work-train service. This includes amounts paid to others
for rent and maintenance of equipment used; cost of labor of enginemen,
trainmen, and enginehousemen, including wages of engine crews and train
crews held in readiness for such service; and cost of fuel and other
supplies consumed in connection with the operation of work trains. It
shall also include the cost of maintaining the carrier's own equipment
used in construction service. Amounts representing constructive rent or
return upon the investment in owned equipment shall not be included as a
part of the cost of work-train service.
(d) Cost of special machine service. This includes the cost of labor
expended and of materials and supplies consumed in maintaining and
operating power shovels, scrapers, rail unloaders, ballast unloaders,
pile drivers, dredges, ditchers, weed burners, and other
[[Page 27]]
labor-saving machines; also rents paid for use of such machines.
(e) Cost of transportation. This includes the amounts paid to other
companies or individuals for the transportation of men, materials and
supplies, special machine outfits, appliances, and tools in connection
with construction. Freight charges paid foreign lines for the
transportation of construction material to the carrier's line shall be
included, so far as practicable, as a part of the cost of the material.
(f) Cost of contract work. This includes amounts paid for work
performed under contract by other companies, firms, or individuals, and
costs incident to the award of the contract.
(g) Cost of protection from casualties. This includes expenditures
for protection against fire, such as payments for discovery or
extinguishment of fires, cost of detecting and prosecuting incendiaries,
witness fees in relation thereto, amounts paid to municipal corporations
and other for fire protection, and other analogous items of expenditure
incurred directly in connection with construction work.
(h) Cost of injuries and damages. This includes expenditures on
account of injuries to persons or damage to property when incurred
directly as a result of construction projects, and shall be included in
the cost of the work in connection with which the injury or damage
occurs. It also includes that portion of premiums paid for insuring
property applicable to the period prior to the completion or coming into
service of the property insured. Insurance recovered on account of
compensation paid for injuries to persons incident to construction shall
be credited to the accounts to which such compensation is charged, and
insurance recovered on account of damages to property incident to
construction shall be credited to the accounts chargeable with the
expenditures necessary for restoring the damaged property. The cost of
injuries and damages incident to the removal of old structures, or parts
thereof, shall be charged to operating expenses, except that such costs
in connection with the removal of old structures which are incumberances
on newly acquired lands shall be included in accounts 2, Land for
transportation purposes, or 3, Grading, as appropriate.
(i) Cost of privileges. This includes compensation for temporary
privileges, such as the use of public property or streets, in connection
with the construction of the property of the carrier.
(j) Material excavated. The cost of disposing of material excavated
in connection with construction shall be considered as a part of the
cost of work, except that when such material is used for filling, the
cost of removal and dumping shall be equitably apportioned between the
work in connection with which the removal occurs and the work in
connection with which the material is used.
(k) Interest cost. [See Instruction 2-1(c)].
[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]
2-7 Additions to and retirements of property--General. (a) In
accounting for additions to and retirements and replacements of road and
equipment property (excluding land) used in transportation operations,
such property changes shall be considered as consisting of: (1) Units of
property, and (2) other than units of property as prescribed in
Instruction 2-19. Track property changes will be distinguished by units
of property as approved by the Commission.
(b) The cost of removal of retired property, both depreciable and
other than depreciable, when borne by the carrier, shall be charged, as
appropriate, to account 11-13-39, Personnel--Salaries and Wages--Way and
Structures--Other--Dismantling retired property, or 11-23-39.
Personnel--Salaries and Wages--Equipment--Other Equipment--Dismantling
retired property, and other appropriate accounts (including
subactivities 11 and 12). \1\
---------------------------------------------------------------------------
\1\ The references to solely related freight operating expense
activity/subactivity numbers and titles used throughout the system are
for convenience and brevity. Refer to the specific account texts to
determine the appropriate solely related passenger and/or common expense
activity/subactivity numbers.
---------------------------------------------------------------------------
(c) An equitable proportion of a balance in property accounts 76,
Interest
[[Page 28]]
During Construction, and 80, Other elements of investment, applicable to
retired property shall be cleared from these accounts concurrently with
the retirement accounting. Unless provided for otherwise, interest costs
shall be capitalized in accordance with generally accepted accounting
principles.
(d) When retired property is held and not removed, the estimated
value of the salvage therefrom shall be included in account 741, Other
assets, until the salvage is recovered, except that the estimated scrap
value of retired property held for sale in the ordinary course of
business, and on which sale and realization of the proceeds within one
year is assured, is includible in account 713, Other current assets.
(e) The accounting for track additions and retirements (with and
without replacement) shall be guided by Instruction 2-10.
[42 FR 35017, July 7, 1977, as amended at 46 FR 10920, Feb. 5, 1981; 48
FR 7183, Feb. 18, 1983; 49 FR 2254, Jan. 19, 1984; 52 FR 4321, Feb. 11,
1987]
2-8 Additions to and retirements of units of property. (a) When a
unit of road or equipment property is added to the plant, the cost
thereof shall be included in the appropriate primary account. When a
unit of property is retired, with or without replacement, the cost
thereof shall be written out of the property account at time of
retirement.
(b) When a unit of road or equipment property (or a minor item not
replaced) classified as depreciable and included in the accounts
prescribed for depreciable property is retired the service value shall
be charged to account 735, Accumulated depreciation; Road and equipment
property.
(c) When road property (other than a minor item constituting
repairs) classified as other than depreciable property is retired, the
cost thereof shall be cleared from the property account and the service
value shall be charged to account 61-13-99, General--Other Expenses--Way
and Structures--Other--Other. When the retirement requires Board
approval, the carrier shall clear the cost from the property account
upon the effective date of the abandonment. Subactivities 11 and 12 also
apply.
(d) When property included in the depreciable accounts but excluded
from the depreciation base is retired, the service value (including
engineering expenditures assignable to retired property but not included
in the depreciation base) shall be charged to operating expense.
2-9 Additions and retirements of other than units of property. (a)
When an item of road or equipment property, other than a complete unit,
is added to the plant and the addition is not a replacement, the cost
thereof shall be accounted for in the same manner as an addition of a
complete unit of property, subject to the minimum rule applicable to
road property (see Instruction 2-2). When an item of property other than
a complete unit (minor item) is replaced, independent of the complete
unit of which it is a part, the cost of replacement shall be treated as
maintenance and charged to operating expenses. If the replacement
constitutes an improvement then the cost of replacement should be
accounted for as a rebuilding expenditure under Instruction 2-12.
(b) When second-hand property acquired is in such physical condition
that it is necessary to rehabilitate the property to bring it up to the
standard required by the carrier, the cost of such rehabilitation shall
be included in the appropriate account for the property.
[42 FR 35017, July 7, 1977, as amended at 55 FR 42016, Oct. 17, 1990]
2-10 Additions to and retirements of track.
(a) When track or its components are added to the plant, the cost
shall be included in the track primary account. When track components
are replaced as part of a track replacement program, the replacement
cost shall be accounted for as an addition to the track property
account. The cost of track components which are retired with or without
replacement shall be written out of the track property account at the
time of retirement.
(b) When track is retired the service value (ledger value less net
salvage) shall be charged to account 735, Accumulated depreciation; Road
and equipment property.
[[Page 29]]
(c) All repairs of tracks shall be accounted for as operating
expenses.
(d) Track investment written out of the accounts shall be at
original cost or estimated standard or average cost for that density
category. Material to be reused shall be put in an investment pool at
unrecovered cost and, when reused, included in the appropriate density
category at the average cost of the investment pool.
[48 FR 7183, Feb. 18, 1983]
2-11 Expenses in connection with additions and betterments. The cost
of removing old material from equipment and from buildings, bridges,
wharves, tracks, and other fixed improvements, shall be charged to the
appropriate operating expense accounts. Such charges shall include the
cost of removing old foundations and filling old excavations, and
restoring condition of grounds after addition and betterment work; and
maintaining or protecting traffic during the progress of addition and
betterment work, including the cost of constructing, maintaining, and
removing temporary tracks required for maintaining traffic during the
progress of the work.
[42 FR 35017, July 7, 1977. Redesignated at 48 FR 7183, Feb. 18, 1983]
2-12 Units of property rebuilt or converted--(a) Rebuilding
expenditures. Carriers shall be governed by the following provisions
when determining and accounting for depreciable road and equipment
property rebuilding expenditures:
(1) Rebuilding expenditures are those cost actually incurred which
substantially extend the service life or substantially increase the
utility of depreciable road and equipment property. The rebuilding
expenditures shall be material in nature relative to the current
replacement cost of a similar new unit of road or equipment property.
Expenses resulting from delayed maintenance and repairs shall not be
considered in determining materiality.
(2) The phrase extend the service life means to extend the life of a
property unit past its estimated service life.
(3) The term increased utility means that the road or equipment
property has become more useful, more efficient, more durable, or has
greater capacity.
(4) Rebuilt or converted road or equipment property shall be
accounted for as an addition to the appropriate property accounts, with
the old units accounted for as retired from service. The charge to the
appropriate property accounts shall be composed of (i) the cost
(estimated if necessary) less a fair allowance for depreciation, or
salvage value, whichever is lower, of the parts reused, (ii) the cost of
labor expended in rebuilding or in the conversion process, (iii) the
cost of additional materials applied, and (iv) any other expenses
incurred directly with the rebuilding or conversion. In no case shall
the total amount charged to the property accounts for these units exceed
the current replacement costs of similar new units that would be used
for the same purpose. When a unit of road property or equipment is
transferred from one class of service to another, with or without
physical conversion, the unit shall be accounted for as retired from its
original account and be recorded in a primary investment account
appropriate to its new class of service.
(5) If it is necessary to repair the secondhand or reused parts
remaining in a rebuilt unit, the repair cost may be added to the value
assigned parts in determining the related cost to be capitalized.
Associated dismantling costs shall be included in operating expenses.
(b) Repair expenses. Expenses pertaining to road and equipment
property, which represent normal or delayed repairs and maintenance,
shall be expensed in the year incurred.
(c) File and Storage. Carriers shall keep records of each rebuilding
program readily available. These records shall be provided to
representatives of the Board when requested. The retention period shall
be as required by 49 CFR part 1220, Preservation of Records.
[44 FR 67426, Nov. 26, 1979. Redesignated at 48 FR 7183, Feb. 18, 1983,
and amended at 52 FR 4321, Feb. 11, 1987]
2-13 Changes in line of road and relocation of yard tracks.
(a) When changes are made in a line of road for the purpose of
reducing curves or grades, or to eliminate
[[Page 30]]
bridges, tunnels, tracks in the installation of a centralized traffic
control system, or other physical features, the part of the line so
changed shall be considered property retired and its ledger value
credited to the property accounts. The new line of road, including land,
grading, ballast, track elements, and other transportation facilities
serving the road shall be considered an addition and the cost charged to
the property accounts. The cost of track changes which do not involve
change in the existing roadbed shall be charged to operating expenses,
even though the tracks may be dismantled in the process, but the
resulting track extensions or reductions shall be accounted for as
additions or retirements as appropriate.
(b) The cost of shifting or rearranging tracks within a yard shall
be charged to operating expenses, even though the tracks may be
dismantled in the process, but resulting increases or decreases in
grading, ballast, or track length shall be accounted for as additions or
retirements, as appropriate. Where tracks in whole or in part within a
yard are determined to be no longer permanently used, the ledger value
of such tracks shall be eliminated from the property account. If yard
tracks and facilities are constructed in another location to take the
place of tracks retired, such tracks and facilities shall be accounted
for as additions and the cost thereof shall be included in the property
account.
[48 FR 7183, Feb. 18, 1983]
2-14 Track connections. (a) When the accounting carrier bears the
construction cost of a connecting track situated on the property of
another carrier, but acquires the salvage rights to the track, the cost
of the track construction shall be charged to account 731, Road and
equipment property.
(b) When carriers (1) share the cost of constructing a connecting
track of which a portion is situated on each carrier's right-of-way, and
(2) own and obtain the salvage rights to the track segment located on
their respective properties, the construction cost borne by each carrier
shall be charged to account 731, Road and equipment property.
(c) The cost of constructing a track connection on the right-of-way
of another carrier which acquires the ownership of and salvage rights to
the track, shall be charged by the carrier bearing such cost to accounts
37-11-00, Purchased service--Joint facility--Debit--Way and Structures--
Running, or 37-12-00, Purchased services--Joint facility--Debit--Way and
Structures--Switching. The owner carrier shall charge the amount of the
construction cost to account 731, Road and equipment--property, with
contra credit to accounts 38-11-00, Purchases services--Joint facility--
Credit--Way and Structures--Running, or 38-12-00, Purchases services--
Joint facility--Credit--Way and Structures--Switching. Material amounts
for such costs shall be referred to the Board for consideration and
decision.
(d) The cost of constructing a side track under a deposit refund
agreement shall be charged to account 731, Road and equipment property.
The deposit shall be credited to account 782, Other liabilities. Deposit
amounts refunded during the agreement period shall be charged to account
782, Other liabilities. Upon termination of the agreement, the amount of
any unrefunded deposit shall be credited to the applicable primary
property accounts on an equitable basis.
2-15 Merger, consolidation, and purchase of a railway operating
entity or system. (a) When a railway or portion thereof constituting an
operating unit or system is acquired by merger or consolidation in a
pooling of interests or by purchase the cost of acquisition represented
by cash, capital stock or other securities issued or assumed,
liabilities assumed, and other consideration, shall be recorded in the
accounts in the manner stated hereunder. Separate instructions are
provided for a merger of subsidiaries.
(b) Pooling of interests:
(1) When the acquisition results from a merger or consolidation
constituting a pooling of interests, in which all or substantially all
of the equity interest in predecessor companies continue, as such, in a
surviving company or a new company created for the purpose, the road and
equipment, the other assets, and the liabilities of the predecessor
companies, together with the balances
[[Page 31]]
in the accumulated amortization and depreciation accounts and the
retained earnings accounts shall be recorded in the appropriate balance
sheet accounts at the amounts shown in the accounts of predecessor
companies, adjusted as may be necessary to conform with the accounting
rules of the Board. Such adjustments shall be included in retained
earnings or the other accounts that would have been appropriate had the
adjustments been made in the books of account of the predecessor
company.
(2) When the total par or the stated value of no par capital stock
issued or outstanding pursuant to the pooling of interests is more than
the aggregate amount of the capital stock of the separate companies
before such pooling of interests, the excess shall be charged to account
795, Other capital, if unrestricted capital is available for such
purpose; otherwise, the excess shall be charged to retained earnings.
(3) When the total par or stated value of no par capital stock
issued or outstanding pursuant to the pooling of interests is less than
aggregate amount of the capital stock of the separate companies before
such pooling of interests, the difference for reduction in capital stock
shall be credited to account 795, Other capital.
(c) Purchase:
(1) When the acquisition results from a purchase (except from
subsidiaries controlled through ownership of the majority share of
voting stock) including mergers or consolidations other than pooling of
interests, the amount includible in account 731, Road and equipment
property, shall be the cost at the date of acquisition to the purchaser
of the transportation property acquired. The cost assigned the property,
as well as other assets acquired, shall be the amount of the cost
consideration given. Where property and other assets are acquired for
other than cash, including liabilities assumed and shares of stock
issued, cost shall be determined by either the fair value of the
consideration given or the fair value of the assets acquired, whichever
is more clearly evident. In addition to any liabilities assumed,
provision shall be made for such estimated liabilities as may be
necessary.
(2) When the costs of individual units or classes of transportation
property are not specified in the agreement, the cost assigned such
property shall be apportioned among the appropriate primary accounts
using the percentage relationship between the fair values for each class
of property acquired and the total of such values.
(d) Merger of subsidiaries:
The acquisition and merger of property of subsidiaries controlled
through ownership of the majority shares of voting stock is to be
accounted for as a pooling of interests or as a purchase depending on
the circumstances in each case. Where control was initially acquired
through issuance of capital stock to stockholders of the subsidiary the
rule applicable to pooling of interests ordinarily is applicable. Where
control was initially acquired through purchase of stock the rule
applicable to purchase of property may be appropriate even though the
shares were purchased gradually from time to time over a period of
years, in which event recognition of retained earnings since date of
acquisition assignable to such shares may be proper. The journal entry
pertaining to acquisition of property of subsidiaries shall be submitted
to the Board for consideration based on the principles herein and
procedures for which there is authoritative support, and the accounting
for the merger shall become final only after approval by the Board.
2-16 Reorganization of railway. (a) When a railway reorganization or
receivership has been consummated, the assets acquired, liabilities
assumed, and the capital stock or other securities issued or assumed,
and other consideration, shall be recorded in the accounts in the manner
stated hereunder. An adjustment of capitalization resulting in
modification and reformation of classes of securities pursuant to
voluntary action of the holders of securities but not resulting in a
formal reorganization following a bankruptcy or other receivership
proceedings (sometimes called a quasi-reorganization) is not covered by
this instruction 2-16. Reduction of capital stock and other
contributions to capital by stockholders shall be recorded in accordance
[[Page 32]]
with the instructions in the text of account 795, Other capital.
(b) The amounts includable in primary road and equipment property
accounts shall be recorded at cost as shown in the predecessor
companies' accounts except as otherwise provided in paragraphs (c) and
(d) of this instruction 2-16. The remaining assets and the liabilities
of the predecessor companies, adjusted as necessary to conform with the
accounting rules of the Board, together with the balances in the
accumulated amortization and depreciation accounts, shall be recorded in
the appropriate balance sheet accounts.
(c) When the amount recorded for assets acquired is more than the
par or stated value of no par capital stock issued and other
consideration paid, including liabilities assumed, the difference shall
be applied to such extent as necessary and is available to provide first
for any deficiency in past accrued depreciation on property classified
as depreciable; and, second, for any estimated loss from retirement of a
branch line, segment of track or other important facility indicated by
supporting records to be imminent. The remaining amount of the
difference, if any, shall be applied proportionately to reduce the
amounts includable in the property accounts in accordance with paragraph
(b) of this instruction 2-16, based on the percentage relationship
between such difference and the aggregate cost of the property shown in
the predecessor companies' accounts.
(d) When the amount applicable to the assets acquired is less than
the par or stated value of no par capital stock issued and other
consideration paid, including liabilities assumed, the accounting shall
be referred to the Board for consideration and decision.
2-17 Construction projects in which governmental agencies,
individuals, or others, and the carrier participate. (a) The amount
includible in the property account for construction projects in which
the carrier and governmental agencies, individuals, or others
participate shall be (1) the payment made by the carrier for its share
of the cost of construction plus (2) the recorded cost (estimated if
unknown) of property relinquished as a direct result of the arrangement
and retired from service less the value of salvage recovered therefrom
by the carrier and less depreciation accrued on depreciable property,
which is part of the carrier's cost of the project. The amount so
includable in the property account shall be distributed equitably among
the primary accounts applicable to railway property constructed. This
amount shall first be applied to railway facilities includable in
accounts other than 4, Other right-of-way expenditures, or 39, Public
improvements--Construction, then any remaining balance shall be included
in account 4 or 39, as appropriate. In no case shall the amount included
in the primary accounts for the railway facilities acquired exceed the
actual cost of constructing such facilities. The property account shall
not include any cost or value for facilities or land contributed or paid
for by governmental agencies, individuals or others. Property acquired
as a specific contribution to capital by stockholders does not come
under this rule. (See text of account 795, Other capital.)
(b) Construction projects as used in this section means widening of
highways, construction of spillways, drainage canals, farm and other
private passes, pipelines, drains or other facilities across the right-
of-way; construction of overhead highway bridges, and railroad bridges
over public highways and across streams, which provide a railroad use in
the operation of trains and a public use in the uninterrupted passage of
highway and river traffic; installation of warning signals to protect
highway traffic; and industrial side tracks. Also, reconstruction and
relocation of tracks and appurtenant facilities such as occur in
connection with carrying out flood control, reclamation, and other
public improvement projects where it becomes necessary to abandon part
of the line of railroad and relocate the tracks.
2-18 Leased property improvements and retirements. The cost to
lessee of structures, facilities, additions and betterments on leased
property and for retirement of property the cost of which is included in
account 732 Improvements on leased property, shall be accounted for in
conformity with the
[[Page 33]]
principles in the instructions for property owned. When lessor's
property is retired and replaced and lessee is not obligated to
reimburse the lessor for the retired property other than through the
replacement, the lessee shall (1) charge the cost of the replacement to
account 732, Improvements on leased property, (2) discontinue accruing
depreciation for lessor's retired property, and (3) when recording final
settlement with the lessor, consider jointly the amount accrued in
account 772, Accrued liability; Leased property, for lessor's retired
property and the respective amounts for the replacement included in
accounts 732, Improvements on leased property, and 733, Accumulated
depreciation; Improvements on leased property. When lessee is obligated
to reimburse the lessor currently or at the termination of the lease for
property retired other than through replacement, the lessee shall
include the amount of the obligation in the appropriate liability
account. The lessee shall furnish the lessor such information as is
required to enable the lessor to perform necessary accounting. The
accounting by the lessee and the lessor shall be consistent with
contractual arrangements.
[47 FR 26635, June 21, 1982, as amended at 52 FR 4321, Feb. 11, 1987]
2-19 List of units of property. (a) This list of units is
established for the purpose of designating the units of property to be
used in accounting for additions to and retirements and replacements of
property. Detailed information is included in instructions 2-7 and 2-8.
Items listed under road property accounts are subject to the minimum
rule applicable to additions to property. See instruction 2-2 pertaining
to the minimum rule.
(b) This list of units will be revised from time to time as may be
necessary to meet conditions. A carrier desiring to include in any
account an appropriate unit not now specified therein may, upon approval
of the Board, make such authorized addition to this list of units.
(c) Rules applicable to units of property rebuilt or converted and
to changes in line of road or tracks which involve accounting for units
or property retired are set forth in instructions 2-12 and 2-13.
[42 FR 35017, July 7, 1977, as amended at 48 FR 7183, Feb. 18, 1983]
Account 3, Grading
A retaining wall, riprap (hand placed), a protecting dyke, a
protecting crib, a wing dam, a revetment, mattress, pipe or other
structures to provide drainage. Each entire installation.
Account 5, Tunnels and Subways
The entire masonry, entire timber, and entire metal lining of a
tunnel or subway, including portals and wing walls.
Drainage. Entire installation.
Lighting. Each entire installation.
Ventilation. Each entire installation.
Account 6, Bridges, Trestles, and Culverts
A steel superstructure.
A concrete or stone substructure.
A concrete trestle, a complete bridge or approach.
A timber trestle, a complete bridge or approach.
Complete machinery for operating a movable span.
A protecting dyke, a protecting crib (a fender), a wing dam, a complete
culvert. Each entire installation.
Account 7, Elevated Structures
Any applicable units listed under account 6, Bridges, trestles, and
culverts.
Account 13, Fences, Snowsheds, and Signs
A complete snowshed.
One continuous mile of right-of-way fence.
One continuous mile of permanent sand or snow fence.
Account 16, Station and Office Buildings
A complete building, including attached platform.
A complete platform structurally detached from a building.
Each retaining wall installation.
Each timber trestle installation.
Each outside steam, water, air, etc., pipe line installation.
Each storm or sanitary sewer installation.
A complete fence.
Paving. Each complete installation.
A station stockyard. Each complete installation.
A track scale.
A track scale pit.
An outside crane or conveying system for handling freight.
A motor truck.
A motor tractor.
[[Page 34]]
Any applicable units listed under other accounts.
Account 17, Roadway Buildings
Any applicable units listed under account 16, Station and office
buildings, and 44, shop machinery.
Account 18, Water Stations
A complete water supply piping system.
A dam or reservoir.
A pump house.
Pumping machinery. Each complete installation.
A water tank. Each complete installation.
A complete track trough at one location.
A water crane. Complete with pit.
A water treating plant.
Account 19, Fuel Stations
A complete fuel supply system, including appurtenances.
A pump house.
A fuel oil storage tank (large).
Account 20, Shops and Enginehouses
A complete building, including attached platform.
A complete platform structually detached from a building.
A turntable.
A turntable pit.
A transfer table with machinery.
A transfer table pit.
A sand storage and handling and drying apparatus.
Outdoor bins. Each complete installation.
A lorry track system (outside).
A boiler washing plant. Each complete installation.
An overhead crane, outside.
Each outside pipe installation, steam, air, water, etc.
Each sewer installation, storm or sanitary.
Paving. Each complete installation.
Each shop fence or wall installation.
Any applicable unit under account 16, Station and office buildings.
Account 22, Storage Warehouses
A complete building, including attached platform.
A complete platform structurally detached from a building.
For additional items, see accounts 16 Station and office buildings, and
44, Shop machinery.
Account 23, Wharves and Docks
A timber float bridge.
A steel float bridge.
A wharf (including pile clusters).
A timber incline.
A bulkhead.
Jetties or breakwater.
Ferry racks (including pile clusters).
Float racks.
Each complete machinery installation.
For additional items, see accounts 3, Grading, 6, Bridges, testles and
culverts, and 44, Shop machinery.
Account 24, Coal and Ore Wharves
Car dumper complete.
Timber bridges.
Steel bridges.
Each complete machinery installation.
A loading or unloading machine complete.
Each coal or ore pocket installation.
For additional items, see accounts 6, Bridges, trestles and culverts,
16, Station and office buildings, 20, Shops and enginehouses, 23,
Wharves and docks, and 44, Shop machinery.
Account 25, TOFC/COFC Terminals
A complete building.
A complete building, including attached platform and ramp.
A complete platform and attached ramp, structurally detached from a
building.
A portable ramp.
A complete fence.
Paving, each complete installation.
An overhead crane, complete.
Each sewer installation.
A truck or tractor used exclusively at TOFC/COFC terminals.
Each floodlighting pole or tower installation.
Each floodlighting installation.
A power distribution system, complete.
Any applicable units listed under all other accounts.
Account 26, Communication Systems
A complete mile section or complete installation if less than a mile of
pole line including cross arms, wires and appurtenances.
Each mile or complete installation of cable with associated parts.
Each mile or complete installation of conduit with associated parts.
A complete tower.
A complete installation at each location constituting a separate means
of communication, such as radio, radar, carrier telephone, teletype, or
other communication systems.
For additional items see account 16, Station and office buildings.
Account 27, Signals and Interlockers
A signal system installation complete, or section thereof, with
associated parts, including masts, batteries, relays, ladder, etc.
A complete mile section or complete installation if less than a mile, or
pole line including cross arms, wires and appurtenances.
[[Page 35]]
Each mile or complete installation if less than one mile of cable with
associated parts.
Each mile or complete installation if less than one mile of conduit with
associated parts.
Switch movement with associated parts.
A complete building.
An interlocking plant complete (excluding machine).
An interlocking machine.
Signal bridge complete.
Each highway crossing protection installation complete.
Each car retarder installation complete.
A traffic control or C.T.C. system installation complete.
Account 29, Power Plants
Any applicable units listed under accounts 16, Station and office
buildings, and 20, Shops and enginehouses.
Account 31, Power Transmission Systems
A continuous mile, or a separate installation if less than a mile, of
catenary complete including catenary hangers, trolley wire and
appurtenances.
A continuous mile, or a separate installation if less than a mile, of
transmission line, including poles, wires, transformers, switches, and
other appurtenances.
Each outside steam, air, etc., pipe line installation.
A manhole.
Substation or switching station complete.
Each mile, or installation if less than a mile, of third rail.
A catenary bridge or support.
A high-tension transmission tower.
Any applicable units listed under accounts 26, Communication systems,
and 27, Signals and interlockers.
Account 35, Miscellaneous Structures
A complete building, including attached platform.
A complete platform structurally detached from a building.
A conveyor system complete.
An elevator system complete.
A blowing system complete.
Any applicable units listed under other accounts.
Account 37, Roadway Machines
Each roadway machine complete including accessories.
Each on and/or off-track automotive vehicle complete, including
appurtenant special-purpose machinery.
Account 39, Public Improvements--Construction
Any applicable units listed under other accounts.
Account 44, Shop Machinery
A machine (including foundation and motor, if any), such as lathes,
shapers, slotters, boring machines.
A furnace.
A boiler installation complete.
A motor vehicle used in shops only.
Testing equipment.
Overhead crane, complete.
Account 45, Power Plant Machinery
A power plant machine, including foundation, such as a turbine,
rectifier, dynamo, generator.
Any applicable unit listed under account 44, Shop machinery.
Account 52, Locomotives
Diesel electric, lead or booster, i.e., ``A'' or ``B'' units.
Diesel electric. Extra or spare engines.
Electric locomotive.
Radio control locomotive.
Account 53, Freight-Train Cars
A complete car.
Motor equipment of a motor driven car.
A propulsion motor, including generator.
A freight container, complete.
Account 54, Passenger-Train Cars
A complete car, including interior furnishings.
Motor equipment of a motor driven car.
A propulsion motor, including generator.
Account 55, Highway Revenue Equipment
A complete vehicle.
A chassis.
A container.
A bogie.
Account 56, Floating Equipment
A complete vessel or boat, exclusive of machinery.
Machinery: a boiler, a motor, an engine.
Account 57, Work Equipment
(a) Rail equipment: (1) A complete car or machine, (2) A boiler, (3) An
engine, (4) A motor, (5) Machinery equipment (with or without tractive
machinery) such as concrete mixer, snow plow, derrick, steam shovel, or
pile driver, (6) A complete motor equipment.
(b) Floating equipment--Work: (1) A complete vessel or boat, (2) A
boiler, (3) An engine, (4) A motor. Any applicable units listed under
other accounts.
Account 58, Miscellaneous Equipment
An airplane.
A complete vehicle.
[[Page 36]]
Account 59, Computer Systems and Word Processing Equipment
A Mainframe
A Mini-computer
A Word processing system
A Printer
A Monitor
A Modem
A Storage device
[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]
2-20 Accounting for leases. (a) Leases shall be accounted for as
capital leases whenever the lease meets one or more of the following
four criteria:
(1) The lease transfers ownership of the property to the lessee by
the end of the lease term,
(2) The lease contains a bargain purchase option,
(3) The lease term is equal to 75 percent or more of the estimated
economic life of the property, and,
(4) The present value at the beginning of the lease term of the
minimum lease payments equals or exceeds 90 percent of the fair value of
the leased property to the lessor at the inception of the lease less any
related investment tax credit retained by the lessor.
(b) If the lease does not meet any of the four criteria, the lease
shall be classified and accounted for as an operating lease.
(c) When accounting for capital leases the lessee shall record the
asset and the related obligation. The amount recorded as the asset and
the obligation shall be the present value at the beginning of the lease
term of the minimum lease payments during the lease term, excluding that
portion of the payments representing executory costs such as insurance,
maintenance, and taxes to be paid by the lessor. However, if that amount
exceeds the fair value of the leased property, the amount recorded as
the asset and the obligation shall be the fair value. The lessee shall
compute the present value of the minimum lease payments using its
incremental borrowing rate unless (1) it is practicable to learn the
implicit rate computed by the lessor and (2) the implicit rate computed
by the lessor is less than the lessee's incremental borrowing rate. If
both of those conditions are met, the lessee shall use the implicit
rate.
(d) Leased assets that meet the criteria for classification as a
capital lease shall be subject to depreciation over their useful lives
in the same manner as assets owned. If the capital lease meets the
criteria of either Instruction 2-20(a)(1) or 2-20(a)(2), the asset shall
be amortized in a manner consistent with the lessee's normal
depreciation policy for owned assets. If the lease does not meet either
of these two criteria, the asset shall be amortized in a manner
consistent with the lessee's normal depreciation policy except that the
period of amortization shall be the lease term.
(e) The accounting accorded the lease shall be subject to the same
considerations as other obligations in classifying them with current and
noncurrent liabilities in the classified balance sheet. Leases that meet
the criteria requiring capitalization shall be recorded in those
accounts that provide for carrier operating property or property used in
other than carrier operations, as appropriate. The accounts shall
segregate the amounts pertaining to capital leases.
(f) If the lease qualifies as an operating lease it should be
accounted for by charging the rent to expense over the lease term. The
rental expense should be recognized on a straight line basis over the
lease term unless another method is more representative of the use and
the benefits derived.
(g) The criteria specified in paragraph (a) should be applied to all
leases regardless of the relationship between the lessor and the lessee
unless it is clear that the terms of the lease transaction have been
significantly affected by their relationship. In this situation, the
accounting should be modified to recognize economic substance rather
than legal form.
(h) In the case of subsidiary companies or companies under common
control whose principal business activity is leasing property or
facilities to the carrier, the carrier is encouraged to request special
authority to file consolidated or combined financial statements. If the
carrier does not wish to file consolidated or combined financial
statements, capitalization of the lease will be required if the lease
meets the
[[Page 37]]
criteria that would require capitalization.
Note: The carrier shall follow generally accepted accounting
principles where an interpretation of the rules for lease accounting is
needed or obtain an interpretation from its public accountant or the
Board.
[42 FR 56611, Oct. 27, 1977, as amended at 52 FR 4321, 4325, Feb. 11,
1987]
2-21 Freight train car repair costing. Class I railroads shall
report the costs of repairing freight train cars by car types.
(a) The accounting for freight train car repair costs shall agree
with the applicable instructions and texts of accounts in 49 CFR Part
1201 relating to the equipment repair process (see Note A).
(b) Railroads may assign either actual costs, standard costs, or a
combination of both to the accounting process. Standard costs, if used,
shall recognize the differences in performing repairs on various types
of equipment, and the differences related to specific repair facilites.
Standard costs shall be based on adequate operational data which are
reviewed at least annually. The resulting variances (price, efficiency,
capacity, etc.) shall be reasonably allocated back to the car types to
derive the amounts reported in Form R-1.
(c) Railroads shall report repair costs by the freight train car
types shown in Schedule 415 of Form R-1. In assigning repair costs,
railroads may use either one of the following methodologies:
Level I: Job Order Cost System
Railroads may use a job order cost system for assigning repair costs
to the car types for freight train cars. Under this methodology,
railroads shall directly match direct labor and materials with the
specific unit of equipment that was repaired. Actual costs, standard
costs, or a combination of both may be used as stated above.
Level II: Alternative Repair Costs Methodology
Railroads not using the job order cost system shall report freight
train car repair costs by using the methodology described below:
(1) The repair costs relating to heavy, program, or project repairs
of freight train cars shall be directly assigned to the car types
repaired by using actual or standard costs. A heavy repair is defined as
a repair that is relatively so material in cost, repair time, or
physical damage that management's involvement in the determination of
the repair to be made is necessary and relatively greater than usual.
Program or project repairs are those repairs which are performed under a
predetermined plan where estimates costs, time periods, and car types to
be repaired are identified.
(2) The repair costs relating to light and running repairs of system
cars shall be allocated to the car types by using the Association of
American Railroads' Car Repair Billing System (CRBS) as the process for
distributing light and running repairs. The CRBS will be the tracking
system for recording the number of repairs, the car types and types of
repairs. Then by applying the CRBS standard costs to the particular
repairs, standard costs relationships by car type can be developed and
used to distribute actual light and running repair cost pools to the car
types.
(3) Railroads shall match repair costs billed by and paid to foreign
roads with the car types that were repaired. Foreign billings for light
and running repairs are usually conducted through CRBS, and therefore,
the car types can be identified. For heavy off-line repairs, car type
identification is possible because system management is generally
involved with the authorization of such heavy repairs and car
identification numbers are generally included in the billing process.
(4) Repair costs relating to foreign freight train cars shall also
be reported by car types. However, a separate breakdown between foreign
and system repair costs is not required for Board reporting purpose. Car
type identification for light and running repairs to foreign cars can be
obtained from CRBS tapes. The cost of heavy repairs to foreign cars
should be accumulated by car types. The resulting expense credits from
foreign railroads should be assigned to the car types to which they
relate.
(5) Railroads shall match any resulting expense credits with the car
types to which they relate. This can occur, for example, when a railroad
is charged with the repair costs of system cars,
[[Page 38]]
but the responsibility of the repair ultimately rests with and is paid
by a foreign road.
(d) Railroads shall submit to the Board any repair cost by car type
methodology which does not agree with item (c) above. The Board shall
review the methodology and determine if it is acceptable for reporting
purposes.
(e) Railroads may submit justification and supporting documents
requesting waiver from provisions required by this instruction. This
provision is intended to provide relief for those smaller Class I
railroads that might be unduly burdened by the cost of developing and
maintaining the required system. Waivers shall be directed to the
Board's Accounting and Valuation Board.
(f) Equipment repair cost records, including the allocation methods
used, shall be maintained and made available to the Board upon request.
Note A: The following accounts and reference pertain to the freight
train car repair process:
11-22-42
21-22-42
39-22-42
40-22-42
41-22-42
61-22-42
Instruction 2-12, Units of property rebuilt or converted.
[46 FR 52951, Dec. 4, 1981, as amended at 52 FR 4321, 4325, Feb. 11,
1987]
2-22 Map specifications.
(a) Class I Railroad companies shall maintain current maps of its
property and shall promptly record any changes that may take place.
(b) Class I companies shall furnish, on request, copies of maps
showing its property as it exists on such date or dates as may be fixed
by the Board.
(c) Class I companies shall maintain planimetric maps that show
right-of-way, track and other important facilities at a scale to show
sufficient detail.
(d) Maps shall be indexed and titled to clearly indicate the
specific area depicted.
(e) All maps shall be prepared in accordance with generally accepted
mapping practices.
[47 FR 50267, Nov. 5, 1982; 48 FR 32833, July 19, 1983]
2-23 Accounting for engineering costs.
(a) The pay and expenses of engineers, assistants and clerks engaged
in the survey and construction of new lines and extensions shall be
included in the cost of the particular property involved. This
accounting treatment also applies in making additions to and
improvements of the carriers road, including wharves and docks.
List of Officers and Employees
Chief engineer.
Assistant engineers.
Bridge and signal engineer.
Architects and draftsmen.
Chief clerk and other clerks.
Transitmen and levelmen.
Rodmen and chainmen.
Cooks and porters on business cars.
Items of Expense and Supplies
Atlases and maps.
Barometers.
Books for office use.
Business car service.
Cameras; compasses.
Camp equipage.
Chains for surveyors.
Drawing boards.
Drawing instruments.
Field glasses.
Furniture repairs and renewals.
Heating and lighting.
Magnets and magnifiers.
Official train service.
Paper, blue-print.
Periodicals and newspapers.
Photographic supplies.
Printing and stationery.
Provisions for business cars.
Rent and repairs of offices.
Rods for surveyors.
Sextants and slide rules.
Telegraph and telephone service.
Traveling expenses.
Triangles and tripods.
(b) When employees listed in (a) above are engaged in the repair and
maintenance of the roadway, their pay and expenses shall be charged to
the appropriate operating expense accounts.
(c) Expenditures for tentative or preliminary surveys shall be
carried in account 743, Other deferred debits, until it is determined
whether or not to continue the work. If the project is continued,
expenditures for all surveys shall be transferred to the appropriate
property account and, if abandoned, to appropriate income accounts.
[[Page 39]]
(d) The cost of designing, making plans and specificaitons, and
supervising the construction of equipment shall be included in the cost
of the particular equipment.
(e) Fees and expenses of architects specially employed for designing
or supervising the construction of buildings shall be included in the
accounts appropriate for the cost of the buildings constructed.
[49 FR 2254, Jan. 19, 1984, as amended at 52 FR 4321, Feb. 11, 1987]
2-24 Accounting for other general expenditures.
Expenditures of a general nature that are attributable but not
directly assignable to original construction or important expansion of
road shall be equitably assigned to the cost of specific units or
segments of property. These expenditures include the pay and expenses of
executive and general officers and their assistants engaged exclusively
with such construction, law expenses (other than organization expenses),
stationery and printing, and taxes before property is used in
transportation operations.
[49 FR 2255, Jan. 19, 1984, as amended at 52 FR 4321, Feb. 11, 1987]
INSTRUCTIONS FOR MAINTENANCE EXPENSES--Table of Contents
3-1 Items to be charged. (a) The accounts provided for maintenance
of road property and of equipment are designed to show the cost of
repairs and also the loss through depreciation of the property used in
transportation operations, including expenses resulting from ordinary
wear and tear of service, exposure to the elements, inadequacy,
obsolesence, or other depreciation, or from accident, fire, flood, or
other casualty.
(b) These accounts shall include the cost of labor, materials and
supplies, work-train service, floating equipment work service, special
machine service, contract work, privileges, protection from casualties,
and other analogous items of expense in connection with the maintenance
of the plant used in railway service. The cost of materials and
supplies, which shall include small tools, shall include the cost at the
point of free delivery plus freight charges of foreign lines, and the
costs of inspection and loading assumed by the carrier; also a
proportion of store expenses. Such costs shall not include expenses of
transportation over the carrier's line. Royalties for patent rights on
mechanical appliances used in repairs of equipment shall be included in
the cost of the repairs. The cost of boarding, traveling, and other
incidental expenses of employees shall be included in the accounts to
which the pay of the employees is chargeable, except where otherwise
specified in the text of the accounts. In calculating the cost of
materials used proper allowance shall be made for the value of unused
portions and of cuttings, turnings, borings, etc., and for the value of
the material recovered from property repaired and from temporary tracks,
scaffolding, cofferdams, and other temporary structures used in repair
work.
(c) The cost of repairs shall include the cost of inspecting to
determine the repairs necessary, and of adjusting or repairing parts,
both of road property and of equipment, such as the repairing of
locomotives, cars, frogs, switches, rails, etc.; the cost of inspecting
and testing after repairs have been made such as the testing of
locomotives after repairs to determine whether the repairs have been
properly made, and the running of repaired locomotives light in order to
break them in for regular service; incidental costs of repairs, such as
the construction or removal of false work in connection with
maintenance, cost of demolishing retired road property and disposing of
the wreckage therefrom when the property is dismantled by or for the
carrier; cost of maintaining or protecting traffic during the progress
of construction work, including the cost of constructing, maintaining
and removing temporary tracks required for maintaining traffic during
the progress of the work; cost of mowing and beautifying grounds around
buildings; repairing fences, sidewalks, driveways, and streets within or
adjacent to such grounds; cost of removing snow from roofs of buildings
(when not removed by those employed in the buildings); cost of
periodical restorations of seasonal features, such as gardens,
shrubbery, and lawns; cost of
[[Page 40]]
operating hothouses in connection with the work of beautifying grounds;
and cost of clearing and removing casual incumbrances, such as ice,
snow, and fallen timber.
(d) An employee's job classification shall not govern the accounting
for work performed. Charges to a particular expense function shall be
based on the nature of the work performed.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]
INSTRUCTIONS FOR DEPRECIATION ACCOUNTS--Table of Contents
4-1 Method. (a) There shall be charged monthly to operating expenses
or other appropriate accounts and credited to account 735, Accumulated
depreciation; Road and equipment property, during the service life of
depreciable road and equipment property, includable in accounts classed
as depreciable, amounts which will approximate the loss in service value
not restored by current repairs or covered by insurance. The charges for
accruing depreciation currently shall be computed in conformity with the
group plan by applying to the cost of property such percentage rates as
will distribute the service value by the straight-line method in equal
annual charges to operating expenses or other accounts during the
estimated life of the property. In the case of track accounts 8, 9 and
11, service value shall reflect net salvage value. For road property,
the cost shall be original cost or estimated original cost, as used in
the valuation records, adjusted to current date. If a carrier submits
proof that the actual cost of depreciable property is substantially
different from cost figures in the valuation records, the carrier may,
with the approval of the Board, use such cost figures as the
depreciation base.
(b) The term group plan means the plan under which depreciation
charges are accrued upon the basis of the cost of depreciable property
includable in accounts classed as depreciable using the service lives of
the individual depreciable units in the accounts and properly weighing
to determine the composite annual rate of depreciation.
(c) For the purpose of the group plan of depreciation accounting,
the following primary accounts are classed as depreciable accounts:
Road accounts:
3. Grading.
4. Other right-of-way expenditures.
5. Tunnels and subways.
6. Bridges, trestles and culverts.
7. Elevated structures.
8. Ties.
9. Rails and other track material.
11. Ballast.
13. Fences, snowsheds, and signs.
16. Station and office buildings.
17. Roadway buildings.
18. Water stations.
19. Fuel stations.
20. Shops and enginehouses.
22. Storage warehouses.
23. Wharves and docks.
24. Coal and ore wharves.
25. TOFC/COFC terminals.
26. Communication systems.
27. Signals and interlockers.
29. Power plants.
31. Power transmission systems.
35. Miscellaneous structures.
37. Roadway machines.
39. Public improvements-construction.
44. Shop machinery.
45. Power plant machinery.
Equipment accounts:
52. Locomotives.
53. Freight-train cars.
54. Passenger-train cars.
55. Highway revenue equipment.
56. Floating equipment.
57. Work equipment.
58. Miscellaneous equipment.
59. Computer systems and word processing equipment.
(d) When abandonment of a branch line or other important segment of
the track structure or other part of the plant for which depreciation
charges are not includable in the accounts as foreseeable within a
reasonable period of time due to exhaustion of traffic, obsolescence or
other causes, application may be made to the Board for authority to
record a suitable provision in anticipation of a probable loss.
[42 FR 35017, July 7, 1977, as amended at 48 FR 4183, Feb. 18, 1983; 52
FR 4325, Feb. 11, 1987]
4-2 Rates of depreciation. (a) A separate composite annual
percentage rate for each depreciable property account, or a subgroup in
that account, shall be used in computing annual depreciation
[[Page 41]]
expenses and accumulated depreciation. The composite rates shall be
based on the results of a depreciation study performed by each railroad.
A depreciation study shall, in general, contain the following
components:
(i) Actuarial or semiactuarial methods for determining service lives
for road and equipment properties;
(ii) Salvage value calculations for road and equipment properties;
(iii) Accumulated depreciation for each account or subaccount as
appropriate;
(iv) Other factors and related calculations involving the
depreciation process; and
(v) A commentary on any adjustments and judgmental factors used in
the study.
(b) Railroads shall submit to the Board for review and approval a
report on depreciation studies and proposed depreciation rates every
three years for equipment property, and every six years for road
property. Railroads can, however, submit depreciation studies prior to
its scheduled year, in which case a new cycle will begin.
(c) In computing monthly depreciation charges, the annual percentage
rates shall be applied to the depreciation base as of the first of each
month and the results shall be divided by twelve.
(d) Class II railroads are exempt from the three-year and six-year
cyclical reviews, but shall submit depreciation studies when requested
by the Board. Class III railroads are not required to submit
depreciation studies.
(e) A separate track depreciation rate shall apply to each primary
property account in each track density category as provided in
Instruction 4-3(d). Track depreciation rates shall be developed by
estimating the average life based on an acceptable depreciation
methodology, consistently applied, including as an option the units of
production method based on gross ton-miles per mile of track.
[42 FR 35017, July 7, 1977, as amended at 46 FR 20210, Apr. 3, 1981; 48
FR 7184, Feb. 18, 1983; 52 FR 4321, Feb. 11, 1987]
4-3 Depreciation records to be kept. (a) The carrier shall maintain
for each class of property in convenient and accessible form engineering
and other data bearing on prospective service lives.
(b) The carrier also shall keep such records of depreciable property
and property retirements as will reflect the service life of each class
of property which has been retired, or will permit the determination of
service life indications by past experience of useful life tenure of
comparable property, turnover, or other appropriate methods; also such
records as will reflect the percentage of value of the salvage for
property retired from each class of depreciable property.
(c) For purposes of analysis the carrier shall maintain subsidiary
records in which the accumulated depreciation account is broken down
into component parts corresponding to each primary account to show the
current credits and debits and the balance for each account. Such
detailed information shall be reported annually to this Board. For
balance sheet purposes, the accumulated depreciation account shall be
treated as a single composite account for depreciable property.
(d) Carriers shall be prepared to justify all track depreciation
rates by keeping appropriate data on the service lives and salvage
values of track components which went into the life and net salvage
computation of each primary account in each density category.
(e) The investment and related accumulated depreciation for accounts
3, 4, 5, 8, 9, 11 and 39 must be maintained by distinct traffic density
categories. Each line segment shall be identified on January 1 of each
year as belonging to one of the following traffic density classes, based
on the average traffic density in the preceding three years:
Density
------------------------------------------------------------------------
Class Description
------------------------------------------------------------------------
I Lines carrying at least 20 million gross ton-miles per mile
on an annual basis and not designated as belonging to
Density Class III.
II Lines carrying less than 20 million gross ton-miles per mile
on an annual basis and not designated as belonging to
Density Class III.
III Lines identified as potentially subject to abandonment
pursuant to Section 10904 of the Interstate Commerce Act.
IV Yard and way switching tracks.
V Electronic yards.
------------------------------------------------------------------------
Note A: For purposes of designating line segments as belonging to
one of the density
[[Page 42]]
classes, the carrier shall consider all traffic carried over the segment
whether in the carrier's trains or in the trains of other carriers
(estimated if not known).
Note B: When a carrier operates systems of parallel tracks on a
single roadbed, the density associated with the related segment of a
rail route shall be the aggregate gross ton-miles on all individual
tracks.
[42 FR 35017, July 7, 1977, as amended at 46 FR 20210, Apr. 3, 1981; 48
FR 7183, Feb. 18, 1983; 52 FR 4321, Feb. 11, 1987]
4-4 Leased property--depreciation. (a) The carrier shall include in
operating expenses charges for depreciation on road property and
equipment used but not owned, the rent for which is includable in the
lease rental accounts, and shall maintain the same records of service
lives, salvage values, etc., as provided for owned road property and
equipment. The excess of the total compensation paid over the amount
chargeable for depreciation shall be included in the rent account. If
settlement between the carrier and the lessor is not currently made, the
amount of the depreciation accrued during the period of the lease shall
be credited by the carrier to account 772. Accrued liability; Leased
property. The necessary adjustments of the difference between the
balance thus accrued in that account and the actual amount of settlement
shall be made appropriately through accounts 519, Miscellaneous income,
or 551, Miscellaneous income charges, at the time settlement for
depreciation on the property is made with the lessor.
(b) The carrier shall not include in the depreciation account in
operating expenses any charges for depreciation of equipment used but
not owned when the rents therefor are not included in the lease rental
accounts but shall include such charges in the appropriate other rent
expense accounts.
4-5 Jointly used property--depreciation. The owning carrier shall
include in the depreciation accounts in operating expenses the charges
for depreciation on units of depreciable property jointly used with one
or more other carriers. The owning carrier shall credit and each using
carrier shall charge the appropriate joint facility accounts in
operating expenses with the amounts billed by the owning carrier against
each using carrier for its proportion of the service loss on property
retired from service whether billed currently as depreciation or when
retirements occur as the loss in service value. The using carriers shall
be required to account for depreciation or retirement of units of road
property jointly used but not owned to the extent of their contract
liability. The same principle shall apply to terminal companies and
their nonowner tenants in accounting for depreciation accruals or
retirement charges recorded in the accounts of the terminal companies.
INSTRUCTIONS FOR INCOME AND BALANCE SHEET ACCOUNTS--Table of Contents
5-1 Current assets. (a) In the group of accounts designated as
current assets shall be included cash, those assets which are readily
convertible into cash or are held for current use in operations, current
claims against others and amounts accruing to the carrier which are
subject to settlement in the ordinary course of business within one
year. There shall not be included in this group of accounts any amount
the collection of which is not reasonably assured within one year
because of the known financial conditions of the debtor or otherwise.
Such items shall be included in account 741, Other assets, at an amount
not in excess of a reasonable estimate of realizable value. Items of
current character but of doubtful value shall be written down or written
off by charge to account 63-61-00, General--Uncollectible accounts--
General and administrative, or account 553, Uncollectible accounts, as
appropriate. Adjustment of these items of doubtful value shall be made
by direct reduction of the asset account in which such items are carried
or by provision in account 709.5, Allowance for uncollectible accounts,
for the estimated uncollectible amount.
(b) The carrier shall transfer the estimated realizable value of
obsolete material to account 741, Other assets, equitably distribute the
loss due to obsolescence among the accounts ordinarily chargeable for
such classes of material, and concurrently credit account 712, Material
and Supplies.
[[Page 43]]
5-2 Recorded value of securities owned. (a)(1) The investment in
securities other than those issued or assumed by the accounting company
shall be recorded in these accounts at cost, but excluding amounts paid
for accrued interest and accrued dividends.
(2) Accounts 702, Temporary Cash Investments, 721, Investments in
Affiliated Companies, and 722, Other Investments, shall be maintained in
such a manner as to reflect the marketable equity securities' portion
(see definition 26) and other securities or investments.
(3) For the purpose of determining net ledger value, the marketable
equity securities in account 702 shall be considered the current
portfolio and the marketable equity securities in accounts 721 and 722
(combined) shall be considered the noncurrent portfolio. The net ledger
value of each portfolio shall be the lower of its aggregate cost or
market value. (See definition 26.) The amount by which aggregate cost
exceeds market value shall be accounted for as the valuation allowance.
Account 702, Temporary Cash Investments, shall be subdivided to include
the valuation allowance for the marketable equity securities included
therein. Account 724, Allowance for Net Unrealized Loss on Noncurrent
Marketable Equity Securities--Cr., is the valuation allowance for the
marketable equity securities recorded in account 721, Investments in
Affiliated Companies, and 722, Other Investments. Marketable equity
securities accounted for by the equity method shall not be combined with
other marketable equity securities when determining aggregate cost and
market value.
(4) Realized gains and losses (the difference between net proceeds
from sale and cost) shall be included in the determination of net income
of the period in which they occur. Changes in the valuation allowance
for marketable equity securities included in account 702 shall be
charged to account 551, Miscellaneous Income Charges, or credited to
account 519, Miscellaneous Income, as appropriate, with a contra entry
to the valuation allowance contained within account 702. Changes in the
valuation allowance for marketable equity securities included in
accounts 721 and 722 shall be recorded in equity account 798.1, Net
Unrealized Loss on Noncurrent Marketable Equity Securities, with a
contra entry to valuation account 724.
(5) If there is a change in the classification of a marketable
equity security between current and noncurrent, the security shall be
transferred at the lower of its cost or market value at date of
transfer. If market value is less than cost, the market value shall
become the new cost basis, and the difference shall be accounted for as
if it were a realized loss and included in the determination of net
income.
(6) The accounting company shall write down the ledger value of any
securities to the extent of impairment in their value or write off
entirely if there is no reasonable prospect of realizing any value
therefrom. For long term investments in marketable equity securities,
when the decline in market value below cost is judged to be other than
temporary, the cost basis of the individual security shall be writen
down to a new cost basis. The amount of the write-down shall be
accounted for as realized loss by a charge to account 551, Other Income
Charges, and a credit to account 723, Reserve for Adjustment of
Investment in Securities. The new cost basis shall not be changed for
subsequent recoveries in value.
(b)(1) For financial statement purposes the carrier shall follow the
principles of equity accounting for (1) all investments in corporate
joint ventures (see definition 21(c)), and (2) all investments in voting
stock of affiliated companies giving the carrier the ability to
significantly influence the operating and financial policies of an
investee (see definition 21(b)). For purposes of this instruction an
investment of 20 percent or more of the outstanding voting stock of an
investee will indicate the ability to exercise significant influence
over an investee in the absence of evidence to the contrary.
(2) Since the equity method is not to be effected by entries in the
books of accounts but is to apply only in financial reports to the
Board, the carrier shall establish worksheet or memorandum accounts.
Three basic worksheet or memorandum accounts are needed:
[[Page 44]]
(i) An investment account to include (1) equity in the undistributed
earnings or losses of the investee since the date of acquisition (see
definition 21(g)); (2) accumulated amortization of the difference
between cost and net assets at date of acquisition (see (b)(3) below);
and other adjustments for disposition or writedown of investments.
(ii) An income account to include (1) the investor's share of the
investee's undistributed profits or losses for each reporting period
subsequent to acquisition of the investment except that in the year of
acquisition such amount shall be determined from the date of
acquisition; (2) amortization for the reporting period of the difference
between cost and net assets at date of acquisition. This account shall
be closed at year-end to the retained earnings memorandum account
discussed in paragraph (iii) below.
(iii) A retained earnings account to include (1) equity in the
undistributed earnings or losses of the investee since the date of
acquisition; (2) accumulated amortization of the difference between cost
and net assets acquired at date of acquisition (see (b)(3) below).
(iv) Other memorandum accounts will be needed for such adjustments
as gains and losses on disposition of investments, recognition of
impairments in value, the investor's share of extraordinary and prior
period adjustments reported in the investee's financial statements (see
instruction 1-2(d)), and provision for deferred taxes where it is
reasonable to assume that undistributed earnings of an investee will be
transferred to the investor in a taxable distribution. These memorandum
accounts shall be closed at year-end to the retained earnings memorandum
account discussed in paragraph (iii) above.
(3) The carrier shall retain the following information for each
investee in support of the worksheet or memorandum accounts:
(i) Original cost of investment.
(ii) Equity in net assets of investee at date of acquisition.
(iii) Allocation of difference between cost and equity in net
assets, namely, to specific assets of investee or to goodwill.
(iv) Accumulated amortization of difference between cost and equity
in net assets.
(v) Unamortized balance of difference between cost and equity in net
assets.
(vi) Equity in undistributed earnings/losses for each year since
date of acquisition.
(vii) Dividends received since date of acquisition if determinable.
(viii) Proceeds from sale of investments.
(4) Any difference between the investor's cost and its share of the
net assets of the investee at date of acquisition shall be allocated to
specific assets of the investee to the extent the difference is
attributable to them. When the difference is allocated to depreciable or
amortizable assets, depreciation and amortization (through the
investment and income memorandum accounts) should absorb the difference
over the remaining life of the related assets. If the difference is not
related to specific accounts, it should be considered goodwill and
amortized over a reasonable period not to exceed 40 years. For
investments made prior to November 1, 1970, amortization of goodwill is
not required in the absence of evidence that the goodwill has a limited
term of existence.
(5) The financial statements of the investee that are used for
equity accounting should be timely. If the accounting year of the
investee differs from that of the investor then the most recent
available financial statements may be used. The lag in reporting should
be consistent from period to period.
(6) Material profits or losses on transactions between the investor
and investee shall be eliminated until realized by either company as if
the two were consolidated.
(7) A transaction of the investee of a capital nature that affects
the investor's share of the investee's stockholder's equity should be
reported in the financial statements as if the two were consolidated.
(8) The investor shall deduct any dividends applicable to
outstanding cumulative preferred stock whether or not declared, and any
other dividends declared when computing its share of undistributed
earnings or losses.
[[Page 45]]
(9) The investor shall suspend application of the equity method when
the investment (including the investment memorandum account) together
with any net advances made to the investee is reduced to zero.
Additional losses shall not be provided for unless the investor has
guaranteed obligations of the investee or is otherwise committed to
provide further financial support for the investee. If the investee
subsequently reports net income the investor shall resume applying the
equity method at such time as its share of that net income equals the
share of net losses not recognized during the period of suspension.
(10) When the investor's voting stock interest falls below the level
of ownership described in paragraph (b)(1) of this instruction, the
investment no longer qualifies for the equity method. Should dividends
received on the investment in subsequent periods exceed the investor's
share of earnings for such periods, the investment memorandum and income
memorandum accounts shall be reduced by the excess amount.
(11) When the level of ownership of an investment increases to that
described in paragraph (b)(1) of this instruction, the equity method
shall be applied. The memorandum accounts for the investment, income
(for current year's equity in undistributed earnings less amoritzation),
and retained earnings (for prior years' equity in undistributed earnings
less amortization) shall be adjusted retroactively on a step-by-step
basis determining the equity in net assets at date of acquisition,
amortization adjustment, and equity in undistributed earnings or losses
at each level of ownership. Where small purchases are made over a period
of time and then a purhase is made which qualifies the investment for
the equity method, the date of latest purchase may be used as date of
acquisition.
(12) Information having significance with respect to the investor's
ownership in investees shall be disclosed in notes to financial
statements of annual reports filed with the Board in accordance with
generally accepted accounting principles.
(c) When securities with a fixed maturity date are purchased at a
discount (i.e., when total cost including brokerage fees, taxes,
commissions, etc., is less than par), such discounts may be amortized
over the remaining life of the securities through periodic debits to the
account in which the securities are carried (preferably coincident with
entries recording interest accruals) and credits to the same account in
which interest income is credited. No debits shall be made in respect to
discounts upon securities held as investments or in special funds if
there is reason to believe that such securities will be disposed of by
redemption or otherwise at less than par or will not be paid at date of
maturity. When securities with a fixed maturity date are purchased at a
premium (i.e., when the total cost including brokerage fees, taxes,
commissions, etc., is in excess of par), such premium may be amortized
over the remaining life of the securities through periodic credits to
the account in which the securities are carried (preferably coincident
with entries recording interest accruals) and debits to the same
accounts in which the interest income is recorded.
Note: The carrier shall follow generally accepted accounting
principles where an interpretation of the rules for equity accounting is
needed or obtain an interpretation from its public accountant or the
Board.
5-3 Discounts, expenses, and premiums on debt. (a) Ledger accounts
shall be provided to cover the discounts, expenses, and premiums on the
sale or resale of each subclass of funded debt and of receivers' and
trustees' securities issued for the benefit of or assumed by the
company. (For explanation of subclass see account 765, Funded debt
unmatured.) The net debit balances remaining in the ledger accounts for
discount and premium shall be included in account 770.1, Unamortized
debt discount, and the net credit balances in account 770.2, Unamortized
premium on debt. Debt expense shall be included in account 743, Other
deferred debits.
(b) Each fiscal period there shall be charged to account 548,
Amortization of discount on funded debt, a proportion on a consistent
basis of each of the debit balances in the discount and premium accounts
and correspondingly there shall be credited to income account 517,
Release of premiums on funding debt, a similar proportion of each of the
credit
[[Page 46]]
balances in these accounts. Related debt expense shall also be charged
to account 548 on a proportional and consistent basis. The amounts for
the respective debit balances for discount and expenses applicable to a
particular issue of obligations may be charged directly to account 548
at time of issue when the aggregate of such amounts does not appreciably
affect the accounts. The method of apportioning debt discount, issue
costs, and premium to accounts 517 and 548 shall be the interest method,
where the effective interest rate on the date of issuance is applied to
the carrying value (debt, less related discount, and issue cost, plus
related premium of each specific issue to the beginning of any given
period.) However, other methods of amortization may be used if the
results obtained are not materially different from those which would
result from the interest method.
(c) When any funded debt which has been actually issued to bona fide
holders for value is reacquired by the accounting company, that
proportion of the balance remaining in accounts containing discount,
expense and premium on funded debt for the subclass of the security
reacquired applicable to the portion reacquired shall be credited or
charged thereto, as appropriate, and concurrently charged or credited to
account 519, Miscellaneous income, account 551, Miscellaneous income
charges; or to account 570, Extraordinary items, as appropriate, in
accordance with the text of these accounts. Such proportion shall be
based upon the ratio of the par value of the security reacquired to the
par value of all the securities of the subclass actually outstanding
immediately before such reacquirement. Gains and losses from
extinguishment of debt (excluding debt maturing serially) which is
acquired to satisfy sinking fund requirements, shall not be recorded as
extraordinary items regardless of amount, but shall be included in
accounts 519 and 551, as appropriate. Such gains and losses shall be
separately disclosed in reports to this Board.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]
5-4 Discount, premium, and assessment on capital stock. (a) Separate
ledger accounts shall be provided for each subclass of capital stock
issued or assumed by the accounting company to cover discount suffered
and premium realized at the time of sale of capital stock. General
levies or assessments against stockholders shall be credited to the
appropriate ledger accounts for the subclass of capital stock against
which the levy or assessment is made.
(b) The total of net debit balance in these ledger accounts shall be
included in account 793, Discount on capital stock, and the total of net
credit balances in account 794, Premiums and assessments on capital
stock.
(c) Discount on each subclass of capital stock may be offset or
reduced by charges to account 794, Premiums and assessments on capital
stock, to the extent that net gains from premiums or assessments have
been included therein or to account 795, Other capital, to the extent
that net gains from reacquisition and resale or retirement of capital
stock applicable to such subclass have been included therein. Any
remaining discount may be amortized by charge to account 616. Other
debits to retained earnings, or may be retained and carried in account
793, Discount on capital stock, until the stock to which the discount
applies is retired.
(d) In case the accounting company is permitted and elects with the
approval of the Board, to distribute all or any part of the net balance
of other paid-in capital to its stockholders, the amount thus
distributed shall be charged to account 795, Other capital.
(e) When capital stock is reacquired, either by purchase or
donation, and is retired or cancelled, account 791, Capital stock, shall
be charged with the par value, stated value of no par stock, or if no
par stock without stated value, the proportionate amount at which the
particular class of stock is included in account 791. Any excess of
reacquisition cost over the recorded value of the stock shall be charged
to account 795, Other capital, to the extent of the accumulated net
gains included in this account applicable to reacquisition and resale or
retirement of such subclass. Any remaining excess reacquisition cost
shall be charged to account 616,
[[Page 47]]
Other debits to retained earnings. Any excess of recorded value over
reaquisition cost shall be credited to account 795, Other capital.
(f) When capital stock is reacquired, either by purchase or
donation, and is not retired or cancelled, nor properly includable in
sinking or other funds, the reacquisition cost shall be charged to
account 798.5, Treasury stock.
(g) When treasury stock is resold, account 798.5, Treasury stock,
shall be credited with the cost paid for it. Gains shall be credited to
account 795, `Other capital.' Losses shall be charged to account 795,
Other capital, to the extent that previous net gains from sales or
retirements of the same class of stock are included therein; otherwise,
to account 616, Other debits to retained earnings.
5-5 Joint liabilities. The accounting company shall state as a
liability in its balance sheet the difference between the total par
value of securities jointly or severally issued by it and others and the
portion of such liability which, under the joint arrangement, it is
expected will be liquidated by the other party or parties to the joint
arrangement. The amount of the jointly or severally issued securities
expected to be liquidated by the other party or parties shall be shown
as a contingent liability in accordance with instruction 5-6 pertaining
to contingent assets and liabilities.
5-6 Contingencies. (a) The proper accounting treatment for
contingencies depends upon whether the contingency is: Probable: the
event or events are likely to occur; Reasonably possible: the chance of
occurrence of the future event or events is more than remote, but less
than likely; or Remote: the chance of occurrence of the future event or
events is slight.
(b) Loss contingencies must be accrued when they are probable and
the amount of loss can be reasonably estimated. Where they are only
reasonably possible, only footnote disclosure is required. Where they
are remote, footnote disclosure is not required, but is permitted.
(c) Gain contingencies usually are not reflected in the accounts
since to do so might be to recognize revenue prior to its realization.
Adequate disclosure shall be made of contingencies that might result in
gain, but care shall be exercised to avoid misleading implications as to
the likelihood of realization.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
5-7 Long-term obligations. Commitments under unconditional purchase
obligations associated with suppliers' financing arrangements and future
payments on long-term borrowings and redeemable stock shall be disclosed
in accordance with generally accepted accounting principles. Such
disclosures shall not preclude accounting recognition if the substance
of a financing arrangement is the acquisition of an asset or incurrence
of a liability.
[47 FR 4266, Jan. 29, 1982, as amended at 52 FR 4321, Feb. 11, 1987]
INSTRUCTIONS FOR CLEARING ACCOUNTS--Table of Contents
6-1 Items to be charged. In recognition of the fact that certain
expenditures incident to the construction and the operation of property
are not chargeable directly to any particular property investment or
expense account, clearing accounts have been provided for the purpose of
securing an equitable distribution of such items to the proper primary
accounts.
6-2 Material and stationery store expenses. (a) To clearing accounts
called Material store expenses and Stationery store expenses shall be
charged expenses in connection with purchasing, handling and storing
material and stationery in and distributing it from the company's
storehouses. Including the pay of officers and employees in the
purchasing and store departments and their traveling, office, and other
expenses; also expenses, including wages, fuel, and supplies, of
operating switching locomotives when exclusively assigned to the service
of switching at material storehouses. (Expenses of incidental switching
at material yards by locomotives in regular switching service shall be
charged to the appropriate transportation accounts.) The pay and
expenses of men employed in purchasing or inspecting a single class of
material, such as ties, shall be added as
[[Page 48]]
store expenses to the cost of that particular material.
(b) The total amount of storehouse expenses charged to these
accounts shall be distributed among the accounts to which material and
stationery has been charged, in proportion to the amounts charged to
each account for the items issued, except that the amount representing
the purchasing department expenses shall be apportioned on the value of
the items issued which were purchased by that department. To avoid
monthly fluctuations in the ratio of store expenses to the value of
material and statonery purchased or issued, carriers may make a monthly
apportionment on the basis of fair percentage rates, provided the store
expense accounts are adjusted and closed out at the end of each year.
6-3 Shop expenses. (a) To a clearing account entitled Shop expenses
shall be charged items of expense at shops, enginehouses, repair tracks,
and other places where mechanical work is performed, not assignable
directly to specific accounts. Such expenses shall be apportioned among
the various accounts affected. The basis of distribution shall be the
relative proportion which the total amount of charges to Shop expenses
bears to the total of the directly distributed labor. To avoid monthly
fluctuations in the ratio of shop expenses to the total of distributed
labor, carriers are permitted to make the monthly apportionment on the
basis of a percentage of the distributed labor, provided the shop
expense account is adjusted and closed out at the end of the year.
(b) The expenses assignable to this account shall include the pay of
foremen (who exercise supervision over all departments), their clerks,
and other employees engaged in general work in and about shops, cost of
heat, light and power; cost of small tools and supplies and water and
power purchased; also cost of removal of snow and ice from transfer
tables and shop yards, and other incidental shop expenses. To this
account shall be charged expenses, including wages, fuel and supplies,
of operating switching locomotives when exclusively assigned to
switching service at shops (the expenses of incidental switching at
shops by locomotives in transportation switching service shall be
charged to appropriate transportation accounts).
6-4 Gravel and sand pits and quarries. (a) When a gravel or sand pit
or quarry is opened for operations likely to extend over a long period,
an account shall be set up designated, Operations of gravel pit at ----
----------, or Operations of quarry at --------, as the case may be. To
this account shall be charged cost of the land in excess of its
estimated value after the gravel, sand, or stone has been removed
(credit to the property account in which the cost of the land is
included); payments for right to enter upon and remove ballast from land
not owned by the carrier; cost of sinking test holes; and costs
preparatory to opening the pit or quarry. To this account shall be
charged also the cost, in excess of the estimated salvage value, of
rails and fastenings, ties, other material and labor used in
constructing tracks to and in the gravel pit or quarry (the estimated
salvage being carried in an appropriate suspense account); cost of labor
and train service employed in producing, quarrying, and loading ballast,
including the cost of operation, repairs, and depreciation of power
shovels and other machines and machinery; pay and expenses of watchmen;
cost of explosives and hand tools, and miscellaneous expenses; and cost
of installing, operating and maintaining signals and interlockers at
gravel pits.
(b) Credit to the clearing account shall be made each month to cover
the cost of ballast material produced during the month. The cost of
production shall include the expenses directly assignable to the monthly
output plus a proportion of the expenses not directly assignable, such
as cost of land, tracks, machinery, and interlockers. This latter amount
shall be computed upon the basis of the ratio which the monthly output
bears to the total estimated yardage to be taken from the pit. When any
portion of the product of such pits or quarries is sold, the cost
thereof shall be credited to this clearing account and any related
profit shall be credited to account 110, Incidental.
6-5 Power plant operations. (a) The accounting for the expenses of
maintaining and operating an electric,
[[Page 49]]
steam, or other power plant (both building and machinery) shall be
determined by the purpose for which the power produced is used. When a
power plant is intended and used for producing power solely for the
carrier's own operations and the cost of operating the plant is
chargeable to clearing account Shop expenses, or to any one specific
account for operating expenses, the expenses of maintenance shall be
charged to the appropriate maintenance accounts, and the cost of
operation to the account appropriate according to the use of the power.
(b) When the power from such a plant is properly chargeable to more
than one account, the expenses of maintaining and operating the plant
shall be included in clearing account designated Power plant operations.
The expense of maintenance shall be cleared from that account to the
appropriate maintenance accounts. The expenses of operation shall be
apportioned to the appropriate accounts upon the basis of quantity of
power used for the various purposes.
(c) When a part of the power produced by a power plant is sold and
the remainder is used in the carrier's own operations, the cost of
maintaining and operating the plant shall be charged to a clearing
account. The expense of maintenance shall be cleared from that account
to the appropriate maintenance accounts. The proportion of the expenses
of operation assignable to the power sold, on the basis of ratio of
quantity of power sold to total quantity of power produced, shall be
credited to this clearing account and any related profit shall be
credited to account 110, Incidental. The remainder of the cost of
operation shall be distributed to the appropriate expense accounts for
the carrier's own operations.
(d) When power plants are intended and used solely for furnishing
power to others, their investment cost shall be included in account 737,
Property used in other than carrier operations, and the revenues and
operating expenses shall be included in the accounts provided for
operations of such property.
(e) The accounting for the maintenance of transmission systems and
distribution systems shall be in accordance with instructions pertaining
to power plant operations.
PROPERTY ACCOUNTS--Table of Contents
Road--Table of Contents
0 Road.
The several primary accounts included in this general account are
designed to show the cost of land and road property owned by the carrier
and devoted to transportation service.
2 Land for transportation purposes.
This account shall include the cost of land of necessary width
acquired for roadway; the cost of land for station, office, shop, and
other grounds; for ingress to or egress from such grounds; for borrow
pits, waste banks, snow fences, sand fences, and other railway
appurtenances; and for storage of material adjoining the right-of-way;
the cost of land for wharves and docks and the cost of riparian or water
rights necessary therefor; the cost of removing from the right-of-way
and locating elsewhere the property of others, and the cost of the
necessary land for relocation of the property, when such costs are
assumed by the accounting carrier.
The carrier's records shall be kept in such manner as to show
separately the cost of land purchased. Proceeds from the sale of timber
or of improvements purchased with right-of-way, less any cost of
removal, shall be credited to this account.
Items of Expense
Abstracts.
Appraisals.
Arbitrators in condemnation cases.
Commissions paid to others.
Condemnation expenses, including court costs and special counsel fees.
Damages to property of others.
Deferred payments for right-of-way.
Ditches for waterways when part of consideration.
Judgments and decreed costs to clear or defend titles.
Notarial fees.
Plats.
Premiums on condemnation bonds.
Recording deeds.
Payments for relinquishment of cattle passes and other rights.
Removal and relocation of buildings and other structures not purchased.
[[Page 50]]
Rent of land when part of consideration for purchase.
Right-of-way agents' compensation (engaged solely in acquiring right of
way).
Taxes accrued and assumed at time of purchase.
Note A: The cost of land acquired in excess of that necessary for
transportation operations shall be included in balance sheet account
737, ``Property used in other than carrier operations.'' When the
purchase of land acquired for transportation operations involves land
not used for such purposes, the charges to this account shall be based
upon the estimated cost of only that portion which is used for such
purposes, and the cost of the remaining land shall be included in
account 737, ``Property used in other than carrier operations.'' Only
the actual cost borne by the carrier for right-of-way and other lands
acquired through vacation of streets and highways shall be included in
this account. No donation should be considered as involved in the
acquisition of such property.
Note B: Amounts paid for options to purchase land for use in
transportation operations shall be charged to account 743, ``Other
deferred debits.'' If the carrier subsequently purchases the land, the
amount of the option payment shall be transferred to this account. If
the carrier does not acquire the land and forfeits the option paid, the
amount shall be charged to account 551, ``Miscellaneous income
charges.''
3 Grading.
(a) This account shall include the cost of clearing and grading the
roadway, and of constructing protection for the roadway, tracks,
embankments and cuts.
(b) When a part of a bridge or trestle, or the entire structure, is
converted by filling into an earth embankment, and the bridge or trestle
is used in lieu of a temporary trestle which would otherwise be required
for the filling, the estimated cost of such temporary trestle shall be
included in the cost of the filling, and charged to this account. (See
note A, under account 6, ``Bridges, trestles, and culverts.'')
(c) When a tunnel is converted into an open cut, the cost of
clearing, grubbing, and excavating shall be included in this account.
(Also see instruction 2-11.)
Details of Roadbed and Items of Expense
Advertising for contractors' bids.
Berm ditches.
Blasting.
Breakwaters.
Bulkheading.
Clearing land.
Cribbing.
Dikes (including those of earthen construction which are intended to
function indefinitely).
Ditches (not required by right-of-way agreement).
Dressing slopes.
Excavation for conversion of tunnels into open cuts.
Filling bridges, trestles, and culverts.
Grading outfits.
Grubbing land.
Material taken from borrow pits.
New channels for streams.
Operations of steam shovels.
Payments for privilege of wasting material on the property of others.
Payments for waste banks off the right-of-way.
Retaining walls.
Revetments.
Riprap.
Spoil banks.
Temporary trestles for fills.
Tools for grading.
Wing dams.
[42 FR 35017, July 7, 1977, as amended at 49 FR 2255, Jan. 19, 1984]
4 Other right-of-way expenditures.
This account shall include the cost (in excess of cost of railway
facilities installed, if any) actually borne by the carrier of
improvement projects (other than public improvement projects), such as
the construction of canals, farm and other private passes, pipe lines,
drains, and other facilities across the carrier's right-of-way.
5 Tunnels and subways.
This account shall include the cost of tunnels and subways for the
passage of trains, including apparatus for ventilating and lighting and
safety devices therein, other than signals.
Note A: The cost of tracks, including guard rails, in tunnels shall
not be charged to this account.
Note B: Station subways not highway crossings are includible in
account 16, ``Station and office buildings.''
Note C: When a tunnel is converted into an open cut, the ledger
value of the tunnel shall be credited to this account. The service value
of the tunnel shall be charged to account 735, ``Accumulated
depreciation; Road and equipment property.''
[42 FR 35017, July 7, 1977, as amended at 48 FR 7183, Feb. 18, 1983]
[[Page 51]]
6 Bridges, trestles, and culverts.
This account shall include the cost of the substructure and
superstructure of bridges, trestles, and culverts which carry the tracks
of the carrier over water-courses, ravines, public and private highways,
and other railways.
Details of Bridge Structures
Abutments.
Bridge signs.
Cofferdams.
Concrete and masonry ends for culvert.
Cribs.
Decking, including gravel for fire protection.
Dike protection.
Drainage systems.
Draw protection.
Drawbridge engines and machinery.
False work.
Guard timbers.
Ice breakers.
Painting (except repainting).
Pier protection.
Piers and foundations.
Pipe culverts.
Retaining walls.
Riprap around abutments.
Riprap at culverts ends.
Supports.
Water channels.
Waterproofing.
Wind dams.
Wing walls.
Note A: When a part or the entire structure of a bridge or trestle
is converted, by filling, into an earth embankment, the ledger value of
the structure, or of the portion thereof filled, shall be credited to
this account. In case the bridge or trestle is used in lieu of a
temporary trestle for the purpose of filling, the estimated cost of such
temporary trestle shall be charged to account 3, ``Grading.'' The ledger
value of the structure or portion thereof, filled, less the value of the
salvage and the estimated cost of trestle charged to account 3 shall be
charged to account 735, ``Accumulated depreciation; Road and equipment
property.''
Note B: The cost of bridges to carry the carrier's tracks over
undergrade crossings, including the necessary piers and abutments to
sustain them, shall be included in this account.
7 Elevated structures.
This account shall include the cost of elevated structures and
foundations of elevated railway systems. This account is applicable to
structures other than earthwork, which are for the purpose of elevating
tracks above the grade of streets, and which are not properly
classifiable as bridges or trestles.
Note: The cost of stations and other structures built on elevated
structures shall be accounted for according to the class of the
structure and not in this account.
8 Ties.
(a) This account shall include the cost of cross, switch, bridge and
other track ties used in the construction of tracks for the movement or
storage of locomotives and cars (including tracks in shop, fuel station,
supply yard areas, etc.), and the cost of additional ties subsequently
laid in such tracks. This account should also include the cost of labor
for unloading, distributing and placing ties in tracks.
(b) The cost of handling ties in general supply and storage yards
shall be included as store expenses.
Note: The cost of ties used in the construction of car floats shall
be included in the cost of such floating equipment, and the cost of ties
used in the construction of temporary tracks, such as gravel-pit and
quarry tracks, shall be included in the appropriate clearing accounts.
Note: Respacing crossties is to be considered maintenance and
expense.
[48 FR 7183, Feb. 18, 1983]
9 Rails and other track material.
(a) This account shall include the cost of rails and other track
material used in the construction of tracks for the movement or storage
of locomotives and cars (including tracks in shop, fuel station, supply
yard areas, etc.); the cost of welding two or more lengths or rail into
continuous lengths for use in construction of tracks; and the cost of
labor associated with unloading and installation of the rail and other
track material.
(b) The cost of handling rails and other track material in general
supply and storage yards shall be included as store expenses.
Items of Other Track Material
Angle bars.
Anticreepers.
Bumping posts.
Compromise joints.
Connecting rods.
Crossings, including foundations or bases.
Derails.
Frog blocking.
Frogs.
Guard-rail blocking.
Guard-rail clamps.
[[Page 52]]
Guard-rail fasteners.
Guard rails, switch and other.
Main rods.
Nut locks.
Nuts.
Offset bars.
Rail braces.
Rail chairs.
Rail clips.
Rail joints.
Rail rests.
Rail shims.
Rail splices.
Splice bars.
Step chairs.
Switch chairs.
Switch crossings.
Switch lamps.
Switch locks and keys.
Switch points.
Switch stands.
Switch targets.
Switches.
Tie plates.
Tie plugs.
Tie rods.
Track bolts.
Track insulators.
Track spikes.
Note A: The cost of rails and other track material used in the
construction of car floats shall be included in the cost of such
floating equipment and the cost of rails and other track material used
in the construction of temporary tracks, such as gravel-pit and quarry
tracks, shall be included in the appropriate clearing accounts.
Note B: The following activities are considered as maintenance and
should be expensed accordingly.
Rail flaw detection
Track inspection
Shifting of existing track
Removing weeds in track
Transposing rail
Restoring chipped and battered rail ends by welding
and/or by rail grinding train or other such equipment.
Gauging track
Loading scrap track materials
Lubricating rail
Tightening bolts
Resetting spikes and rail anchors in existing track
Any other maintenance work not involving the
placement of track material
[48 FR 7183, Feb. 18, 1983, as amended at 49 FR 2255, Jan 19, 1984; 52
FR 4326, Feb. 11, 1987]
11 Ballast.
(a) This account shall include the cost of gravel, stone, slag,
cinders, sand, and like material used in ballasting tracks (including
tracks in shop, fuel station, and supply yard areas, etc.) including
cost of worktrain service and the cost of labor expended in placing
ballast in tracks.
Note A: The cost of ballast used in the construction of temporary
tracks, such as gravel-pit and quarry tracks, shall be included in the
appropriate clearing accounts.
Note B: Earth placed to form a crown in the middle of the track is
not considered as ballast.
Note C: The cost of ballast material placed on the decking of
bridges solely for fire-protected purposes shall be included in account
6, ``Bridges, trestles and culverts.''
Note D: Surfacing (surface correction of existing ballast) is to be
considered maintenance and expensed.
[48 FR 7183, Feb. 18, 1983, as amended at 49 FR 2255, Jan. 19, 1984]
13 Fences, snowsheds, and signs.
This account shall include:
(a) Fences. The cost of right-of-way fences and snow and sand
fences, farm gates, cattle guards, wing fences, aprons, and hedges, on
property not previously fenced, excluding those around stockyards, fuel
stations, station and shop grounds, and building sites.
(b) Snowsheds. The cost of snowsheds, including initial cost of
planting trees for protecting tracks from snow.
(c) Signs. The initial cost of signs other than those for
identification of bridges, signals, stations and other structures.
Sign Items
Boundary signs.
Bridge-caution signs.
Crossing signs.
Curve and elevation markers.
Division-limit signs.
Mileposts.
Monuments.
Safety-first signs at crossings.
Section-limit signs.
Slow or stop signs.
Tunnel-caution signs.
Water-station signs.
Whistle signs.
Yard-limit signs.
Note A: The cost of fences (other than right-of-way boundary fences)
around stockyards, fuel and water stations, and other building sites,
shall be charged to the accounts appropriate for the cost of the
structures.
[[Page 53]]
Note B: The cost of signs for identifying bridges, signals,
stations, and other structures shall be included in the account
appropriate for the cost of the structures.
Note C: The cost of crossing signals, including crossing gates,
shall be included in account 27, ``Signals and interlockers.''
Note D: This account shall also include the cost of replacing units
of such property or substantial parts of fences or snowsheds the
original cost of which are charged to this account.
16 Station and office buildings.
This account shall include the cost of station and general office
structures, their fixtures, appurtenances, and furniture necessary to
equip the buildings ready for use.
Station and Office Structures and Details
Breakwaters for protection of buildings.
Buildings and rooms for trainmen.
Buildings on piers.
Coal transferring machinery (not on coal and ore wharves).
Coal trestles (not at fuel stations).
Drainage and sewerage systems.
Elevators and machinery.
Fences.
Freight cranes and derricks.
Freight handling machinery.
Gas-supply systems.
General office buildings.
Grain elevators and warehouses.
Heating plants.
Hoisting engines, for handling freight.
Lighting plants.
Ore-transferring machinery.
Pavement within ground limits.
Platforms, passengers, including planking between tracks.
Power distribution systems, interior.
Sidewalks.
Station footbridges (not highway crossings).
Station intertrack fences.
Telegraph offices.
Track scales.
Water-supply systems.
Yard offices.
Note A: Office buildings used exclusively in connection with
maintenance of way shall be included in account 17, ``Roadway
buildings.'' Those used exclusively in connection with maintenance of
equipment shall be included in account 20, ``Shops and enginehouses.''
Note B: The cost of grading and preparing grounds both before and
after the construction of station buildings, the cost of constructing
sidewalks, driveways, and fences thereon, and the cost of permanent
water rights shall be included in the cost of the buildings. The fees
and expenses of architects employed to design or supervise the
construction in the buildings shall also be included in the cost of the
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
17 Roadway buildings.
This account shall include the cost of roadway shops and other
roadway buildings, including drainage, water, gas, and sewer pipes and
connections; and all machinery, fixtures, and furniture to equip the
building ready for use.
List of Roadway Buildings
Breakwaters for protection of buildings.
Carpenters shops.
Fire-engine houses.
Frog shops for repair of track material.
Hand-car houses.
Lighting plants.
Lumber sheds.
Planning mills.
Rail reclamation plant.
Rail shops for repair of track material.
Rail welding plant.
Repair shops.
Scrap bins.
Section dwelling houses.
Tool houses.
Note: The cost of grading and preparing grounds both before and
after the construction of roadway buildings, the cost of constructing
sidewalks, driveways, and fences thereon, and the cost of permanent
water rights, shall be included in the cost of the buildings. The fees
and expenses of architects, employed to design or supervise the
construction of the buildings, shall also be included in the cost of the
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
18 Water stations.
This account shall include the cost of structures, facilities, and
appliances necessary to equip for service, stations for supplying water.
The cost of analyses of water preliminary to the establishment of water
stations shall be included in this account.
Water Station Structures and Details
Boilers.
Breakwaters for protection of buildings.
Buildings on piers.
[[Page 54]]
Cisterns and dams.
Fences.
Pump houses.
Purifying plants.
Reservoirs and wells.
Settling basins.
Stationary engines.
Steam pipes.
Tanks and foundations.
Water pipe lines.
Water-treating plants.
Note A: The cost of water stations used solely for supplying water
to shops, power plants, stations, hotels, tenement houses, or section
houses shall be charged to the appropriate accounts relating to the
property so supplied.
Note B: The cost of a temporary water station established only for
use during the construction period shall be included in the primary
accounts to which is charged the cost of the work in connection with
which the water station is used.
Note C: The cost of grading and preparing grounds both before and
after the construction of water station buildings, the cost of
constructing sidewalks, driveways, and fences thereon, and the cost of
permanent water rights shall be included in the cost of the buildings.
The fees and expenses of architects employed to design or supervise the
construction of the buildings shall also be included in the cost of the
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
19 Fuel stations.
This account shall include the cost of structures, facilities other
than tracks, and appliances necessary to equip for service, stations for
supplying fuel to locomotives and floating equipment.
Fuel Station Structures and Details
Breakwaters for protection of buildings.
Buildings on piers.
Dumping machinery.
Elevating machinery.
Fences.
Fuel houses or stations.
Fuel-oil plants, pumps, and tanks.
Fuel platforms on wharves.
Stationary engines.
Weighing apparatus.
Note A: The cost of fuel stations, coal houses, etc., used solely
for supplying fuel to shops, power plants, stations, hotels, tenement
houses, or section houses shall be charged to the appropriate accounts
relating to the property so supplied.
Note B: The cost of a temporary fuel station established only for
use during the construction period shall be allocated to the primary
accounts charged with the construction costs.
Note C: The cost of grading and preparing grounds both before and
after the construction of fuel station buildings, the cost of
constructing sidewalks, driveways, and fences thereon, and the cost of
permanent water rights shall be included in the cost of the buildings.
The fees and expenses of architects employed to design or supervise the
construction of the buildings shall also be included in the cost of the
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
20 Shops and enginehouses.
This account shall include the cost of buildings to be used as shops
and enginehouses and storehouses for material for maintenance of
equipment; foundations, except those special to particular machines and
other apparatus; furniture and fixtures other than equipment chargeable
to account 44, Shop machinery; drainage, sewerage, and water supply
systems; and plants for heat and light.
Shop and Enginehouse Structures and Details
Air-compressor houses.
Bins for material.
Blacksmith shops.
Breakwaters for protection of buildings.
Buildings on piers.
Car sheds and shops.
Carpenter shops.
Electric-power distribution systems within buildings.
Enginehouses.
Fire engine houses.
Footbridges (not public highways).
Foundries and machine shops.
Gas-compressor houses.
Heating and lighting plants.
Laboratories.
Lumber sheds.
Material and supply truck tracks.
Motor-crane tracks.
Offices, shop.
Paint shops.
Pipe lines, air, and heat.
Pipe lines, gas, interior.
Planning mills and repair shops.
Platforms, shop and yard.
Scale houses and scales.
Scrap bins.
Sidewalks.
Steam-distribution systems, interior.
Storehouses.
Tanks, gas, and oil.
Test rooms.
Turntables.
[[Page 55]]
Upholstering shops.
Warehouses.
Note A: The cost of distinct power plant buildings for shop purposes
shall be included in account 29, ``Power plants.'' The cost of
distribution systems leading from such power plants to shops shall be
included in account 31, ``Power-transmission systems.''
Note B: The cost of grading and preparing grounds both before and
after the construction of shop buildings, the cost of constructing
sidewalks, driveways, and fences thereon, and the costs of permanent
water rights shall be included in the costs of the buildings. The fees
and expenses of architects employed to design or supervise the
construction of the buildings shall also be included in the cost of the
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
Note C: The cost of shop buildings devoted solely to the maintenance
of way and structures shall be included in account 17, ``Roadway
buildings.''
22 Storage warehouses.
This account shall include the cost of storage warehouses, including
machinery and fixtures therein. The buildings herein referred to are not
the ordinary freight warehouses or stations where freight is received
for shipment, etc., but warehouses in which merchandise is stored and
which the railway companies operate as storage warehouses.
Note A: The cost of grading and preparing grounds both before and
after the construction of storage warehouse buildings, the cost of
constructing sidewalks, driveways, and fences thereon, and the cost of
permanent water rights shall be included in the cost of the buildings.
The fees and expenses of architects employed to design or supervise the
construction of the buildings shall also be included in the cost of
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
Note B: The cost of warehouses leased to noncarriers shall be
charged to account 737, ``Property used in other than carrier
operations.''
23 Wharves and docks.
This account shall include the cost of wharves, docks, dry docks,
slips, float bridges, and other landings for vessels, including the cost
of necessary dredging and the cost of float-bridge machinery; also the
cost of piling, pile protection, cribs, cofferdams, walls, and other
necessary devices and apparatus for the operation or protection of
wharves and docks.
Details of Wharves and Docks
Bridge pontoons.
Bulkheads.
Caissons and cribwork.
Dry docks.
Ferry-bridge machinery.
Ferry bridges.
Ferry slips.
Jetties and inclines.
Transfer-bridge machinery.
Transfer bridges.
Note A: The cost of coal and ore wharves and docks shall be included
in account 24, ``Coal and ore wharves.''
Note B: The cost of the land on which wharves are built and cost of
riparian or water rights for wharves and docks shall be charged to
account 2, ``Land for transportation purposes.''
Note C: The cost of buildings located on wharves shall be included
in the accounts appropriate for the class of buildings.
Note D: The cost of grading and preparing grounds both before and
after the construction of wharves (other than coal and ore wharves), the
cost of constructing sidewalks, driveways, and fences thereon, and the
cost of permanent water rights shall be included in the cost of the
wharves. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
24 Coal and ore wharves.
This account shall include the cost of wharves and docks for the
transfer, treatment, blending, or storage of coal or ore, including the
cost of necessary dredging and of conveyors, machinery, and fixtures.
Note A: The structures referred to in the account do not include
small transfer or storage trestles or wharves at stations where coal is
stored or delivered, such trestles being classed as station buildings.
Note B: The cost of grading and preparing grounds both before and
after the construction of coal and ore wharves, the cost of constructing
sidewalks, driveways, and fences thereon, and the cost of permanent
water rights shall be included in the cost of the wharves. The fees and
expenses of architects employed to design or supervise the construction
of whaves shall also be included in the cost of the wharves. However,
the cost of restoring the grounds after addition and betterment work
shall be included in the appropriate operating expense accounts.
[[Page 56]]
25 TOFC/COFC terminals.
This account shall include the cost of structures, fixtures,
machinery and appurtenances comprising terminals used for loading and
unloading trailers and containers on and from flat cars.
TOFC/COFC Terminal Structures and Details
Cranes and hoists, including related machinery and appurtenances.
Drainage and sewerage.
Fences.
Grading and preparing grounds for TOFC/COFC terminals.
Offices, TOFC/COFC terminal.
Lighting system.
Platforms, ramps and appurtenances.
Power distribution systems.
Sidewalks, pavements and driveways on terminal grounds.
Terminal trucks and tractors.
Note A: ``Trailer,'' as used in the text and elsewhere in this
system of accounts unless otherwise indicated in the context, means
trailer bodies used in TOFC/COFC service which are permanently mounted
on running gear. ``Containers'' means trailer bodies used in TOFC/COFC
service which are not permanently mounted on wheels or chassis, but are
separated from such running gear before being loaded on flat cars.
Note B: The cost of grading and preparing grounds both before and
after the construction of TOFC/COFC terminals, the cost of constructing
sidewalks, driveways, and fences thereon, and the cost of permanent
water rights shall be included in the cost of the buildings. The fees
and expenses of architects employed to design or supervise the
construction of the buildings shall also be included in the cost of the
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
26 Communication systems.
This account shall include the cost of telegraph, telephone, radio,
radar, inductive train communication, and other communication systems,
including terminal equipment.
Details of Telegraph and Telephone Terminal Equipment
Batteries.
Cables and wires, interior.
Carrier terminating equipment.
Conduits, interior.
Connecting wires.
Current-controlling instruments.
Electric generators and motors.
Electric meters.
Engines, stationary.
Fuses and mechanical protectors.
Rectifiers.
Rheostats.
Sending and receiving instruments.
Switchboards.
Telegraph repeaters.
Telephone repeaters.
Teletypewriters.
Testing outfits.
Transformers.
Details of Telegraph and Telephone Outside Plant
Aerial attachments.
Braces.
Brackets.
Cable boxes and appurtenances.
Cable and wires, aerial.
Conduits and appurtenances.
Cross arms.
Gas and associated facilities for cables.
Guy stubs.
Guy wires.
Insulators.
Load coils.
Submarine cables and connections.
Telephone pole boxes.
Towers.
Underground cables and connections.
Details of Radio, Radar, and Inductive Train Communication Equipment
Aerials or antenna, and attachments.
Buildings or towers used exclusively for wireless.
Control units.
Power generating, converting, or supply equipment.
Radar console and associated equipment.
Roadside or office equipment for all wireless systems operated on
special channels between train and train, train and tower or office, or
between ship and shore.
Specialized testing and repair equipment.
Transmitters and receivers, including mobile units.
Note A: Radio, radar or trainphone equipment (except portable
apparatus) which is permanently attached to locomotives, cars, work
equipment, or other rolling stock or floating equipment shall be
included in the same accounts as the equipment on which installed.
Wireless sets for instruction, advertising, or entertainment shall be
included in the same accounts as the building in which located.
Note B: Communication systems of limited extent, not connected with
other systems used for special purposes and usually installed within a
single building, group of buildings, or within the limits of a station
or shop layout or yard, shall be included in the same account as the
building in which located or in the account appropriate for the service
with which associated.
[[Page 57]]
Items
Buzzers, bells, dictaphone or other interoffice communication systems in
an office or group of buildings.
Loud speakers, bells, or whistles in shop and other yards.
Loud speakers, public address devices, press button control lights,
telautograph or other systems in stations or on platforms.
Whistles, klaxons, or horns operated from signals towers.
Note C: Test sets shall be classified as tools and included in the
account appropriate for their use.
27 Signals and interlockers.
This account shall include the cost of interlocking and other
signals apparatus for governing the movements of locomotives, cars, and
trains, and for the protection of traffic at crossings, including towers
and other buildings, furniture, fixtures, and machinery in connection
therewith; roadway installations for train control and remote control
including the cost of the initial tests of such installation; also the
cost of buildings and machinery of power plants used primarily for the
production of power for the operation of signals and interlockers.
Items
Automatic-train control devices other than on equipment.
Call-bell systems along track to call in flagmen.
Call boxes, electric.
Car-retarder systems.
Centralized traffic control.
Crossing flasher-light signals.
Crossing gates, highway and railway.
Crossing signals bells.
Crossing warning signals.
Interlocker buildings and machinery.
Power apparatus primarily for the operation of signals and interlockers.
Power-distribution lines primarily for the operation of signals and
interlockers.
Signal buildings.
Signal machinery, poles and foundations.
Train-order signals.
Note A: When signal or interlocking apparatus is located in a
station building, only the cost of the signal or interlocking apparatus
shall be charged to this account. The entire cost of the building shall
be included in account 16, ``Station and office buildings.''
Note B: The cost of track material, such as switches, special rail
braces, special roads, special track fastenings, split rails, derails,
derail stands, and frogs, used in connection with interlockers, shall be
included in account 9, ``Rail and other track material.''
Note C: When derails are arranged so as to be thrown from switch
stands, the cost of labor expended in the installation of the
connections between the switch stand and derail and the devices for
throwing the derail shall be included in account 9, ``Rail and other
track material.'' The cost of the material shall be included in account
9, ``Rail and other track material.''
Note D: The cost of grading and preparing grounds both before and
after the construction of signal and interlocker buildings, the cost of
constructing sidewalks, driveways, and fences thereon, and the cost of
permanent water rights shall be included in the cost of the buildings.
The fees and expenses of architects employed to design or supervise the
construction of the buildings shall also be included in the cost of the
buildings. However, the cost of restoring the grounds after addition and
betterment work shall be included in the appropriate operating expense
accounts.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
29 Power plants.
This account shall include the cost of power-plant and substation
buildings (housing machinery provided for in account 45, ``Power-plant
machinery''); all foundations other than those special to particular
machines and apparatus; and also dams, canals, pipe lines, and
accessories devoted to the utilization of water for power. Gas and sewer
pipes and their connections, fixtures (including wiring) for lighting
and heating, and furniture and miscellaneous fixtures shall be
considered as a part of the power-plant buildings.
Power-Plant Structure Items
Buildings.
Coal bunkers, pockets and trestles.
Fences (other than right-of-way boundary fences).
Fixtures for lighting (including wiring) and heating power-plant
buildings.
Foundations (except special foundations for machines and other
apparatus).
Fuel-oil tanks.
Furniture.
Hose and appliances for protecting buildings against fire.
Pavement within ground limits.
Permanent rights in water supply.
Platforms.
Smoke stacks and chimneys and their foundations when distinct from and
not resting on boilers.
Water, sewer, gas, and drainage, pipes and connections.
Wells (but not pumps).
[[Page 58]]
Dam, Canal, and Pipe-Line Items
Aqueducts.
Bridges.
Fences (other than right-of-way boundary fences).
Footbridges.
Reservoirs.
Roadways.
Sluices.
Valves.
Water rights.
Note A: The cost of power-plant machinery, including stacks resting
on boilers, and special foundations for machines, shall be included in
account 45, ``Power-plant machinery.''
Note B: The cost of the buildings and the power machinery and other
apparatus of plants used primarily for operating signals and
interlockers shall be included in account 27, ``Signals and
interlockers.''
Note C: Investment in buildings and machinery of detached plants for
furnishing power both for operating purposes and for sale shall be
included in this account and in account 45, ``Power-plant machinery,''
respectively. When plants are intended and used primarily for generating
power for sale to other than common carriers, the investment shall be
included in account 737. ``Property used in other than carrier
operations.''
31 Power-transmission systems.
This account shall include the cost of systems for conveying
electricity, steam, and compressed air from producing plants to place or
building where used; also the cost of conduits and of poles, cross arms,
insulator pins, brackets, and other pole fixtures, and of other
structures for power-transmission and distribution systems, including
those for electric railway operation, and lighting systems for general
lighting purposes.
Power-Transmission System Items
Air pipe-line in car yards.
Compressed air pipe-lines.
Compressed air storage tanks (not at power houses or shops).
Cut-outs (not at power houses and substations).
Overhead trolley wires.
Rail-insulating devices.
Steam-heating pipe-lines in car yards.
Switchboards (not at power houses and substations).
Third-rail insulation and protection.
Transformers (not at power houses and substations).
Underground power tubes.
Pole-Line and Conduit Items
Braces and other support for holding poles in position.
Brackets, cross arms, and other pole fixtures.
Conduits for wires and cables.
Cutting and trimming trees.
Guy stubs and wires.
Manholes.
Poles and towers.
Sewer traps.
Stenciling or painting letters or numbers on poles.
Note A: The cost of wire and pipe-distribution systems located
within shop buildings and in stations and office buildings shall be
included in the cost of the buildings, except that lateral service lines
to equipment-shop machines shall be included in account 44, ``Shop
machinery.'' The cost of distribution systems used primarily for
operating signals and interlockers shall be included in account 27,
``Signals and interlockers.''
Note B: The cost of conduits and of poles and fixtures for telegraph
and telephone, or signal lines shall be included in account 26,
``Communication systems,'' or account 27, ``Signals and interlockers,''
as appropriate. The cost of poles and conduits used for telegraph and
telephone or signal lines and for power-distribution lines shall be
included in the account appropriate according to their predominant use.
35 Miscellaneous structures.
This account shall include the cost of all permanent structures not
provided for elsewhere, including all fixtures and furniture to equip
them for use.
Miscellaneous Structures Items
Floodlight tower installations in yards.
Grain elevators where grain is stored for owners.
Storehouses for general purpose materials and supplies.
Note A: Small storage elevators at way stations where grain is
received for shipment are classed as station buildings.
Note B: The cost of grading and preparing grounds both before and
after the construction of miscellaneous structures and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the structures. The fees and expenses of architects
employed to design or supervise the construction of the buildings shall
also be included in the cost of the structures. However, the cost of
restoring the grounds after addition and betterment work shall be
included in the appropriate operating expense accounts.
[[Page 59]]
37 Roadway machines.
This account shall include the cost of the initial outfit of roadway
machines provided for the maintenance of roadway and structures at the
time the road is opened for commercial traffic, and the cost of
additional roadway machines acquired subsequently. This account shall
also include the cost of on and/or off-track automotive vehicles,
permanently equipped with special-purpose machinery such as hydraulic
cranes, derricks, ditching apparatus, pile-driving equipment, and
similar machines listed below, and used exclusively in maintenance of
way and structures.
List of Roadway Machines
Adzers.
Anchor applicators.
Ballast regulators.
Cars, lever.
Cars, motor inspection.
Cars, push.
Cars (small), crane, for supply yards and general use.
Concrete mixers.
Ditching machines.
Dredging machines.
Engines, portable.
Grading outfits.
Hydraulic outfits.
Jacks, hydraulic.
Pile drivers.
Plows, unloading.
Rail grinders.
Rail unloaders.
Rock crushers.
Scarifier-inserters.
Spike drivers.
Spike pullers.
Tie tampers.
Timber trucks.
Trackliners.
Note A: When an important addition and betterment project or the
construction of a new line necessitates the purchase of roadway machines
to be used exclusively thereon, the cost shall be included in the
accounts to which the cost of the work is charged. The amount realized
from any subsequent sale, or the appraised value of the machines
retained after the completion of the special work for which they were
purchased, shall be credited to the accounts charged with the cost
thereof. The appraised value of such machines retained shall be debited
to this account and thereafter considered as the cost of such property.
Note B: The cost of machines for the equipment of roadway shops
shall be included in account 17, ``Roadway buildings.''
Note C: The cost of roadway machines, such as pile drivers, log
loaders, hoist engines, and concrete mixers, when permanently mounted
for movement on the carrier's tracks, shall be included in account 57,
``Work equipment.''
39 Public improvements; construction.
This account shall include amounts assessed on carrier property by
governmental authority (by mutual agreement or otherwise) to cover the
cost of constructing public improvements, when such assessments are made
against property within defined areas of taxing districts. The account
also shall include carrier's portion of the cost of public improvements
constructed under governmental requirements. (See instruction 2-17.) The
entire amount of each assessment and other liabilities for public
improvements shall be included in this account as soon as the amounts
are determined.
Items
Cost of land outside carrier's right-of-way to provide for the
relocation of streets or highways or providing slopes therefor.
Cost of removal and relocation of buildings and other structures in
connection with the construction of streets and highways.
Curbing streets and highways.
Damage to property of others when incidental to highway construction.
Drainage systems.
Engineering--When such costs apply to items chargeable to this account.
Flood protection.
Grading streets and highways.
Guttering streets and highways.
Irrigation systems.
Levees.
Overhead highway bridges, including approaches.
Paving streets and highways, including such pavings at crossings.
Planking, highway crossings.
Sewer systems.
Sidewalks.
Street-lighting systems.
Water works.
Note A: The cost of railway facilities installed in connection with
joint public improvement projects if not in excess of total costs borne
by the carrier shall be included in accounts other than account 39,
``Public improvements; construction,'' appropriate for the class of
property installed. Any costs borne by the carrier in excess of the cost
of railway facilities shall be charged to this account. The carrier
shall charge the cost of assessments for public improvements which
[[Page 60]]
is borne by joint owner tenants to the appropriate property accounts
other than account 39, ``Public improvements; construction,''
assessments from tenant owners shall be credited to account 795, ``Other
capital.'' The owner tenants shall charge their proportionate share of
the assessment to account 721, ``Investments and advances; affiliated
companies.'' The carrier shall charge the appropriate property accounts
other than the public improvement account for the cost of public
improvement assessments borne by nonowner tenants with contra credit to
account 38-00-00, ``Purchased services--Joint facility--Credit,'' and
the tenants shall charge their proportionate share of the assessments to
account 37-00-00, ``Purchased services--Joint facility--Debit.''
Note B: The cost to the carrier of maintaining public improvements
shall be included in operating expenses.
Note C: Any portion of the cost of public improvements which is
included in the general tax levy for a regular taxing district shall be
included in the account appropriate for the taxes.
Note D: The amount of the deferred payments of assessments for
public improvements, if payments are to be made within one year, shall
be included in account 763, ``Other current liabilities.'' If the
payments are spread over a longer period they shall be credited to
account 782, ``Other liabilities.'' The interest paid on such
assessments shall be included in account 547, ``Interest on unfunded
debt.''
Note E: Interest imposed for failure to pay assessments within the
allocated time shall be charged to Account 547, Interest on unfunded
debt. Any related penalties shall be charged to Account 551,
Miscellaneous income charges.
Note F: Assessments on noncarrier property for the cost of
constructing public improvements shall be charged to account 737,
``Property used in other than carrier operations.''
[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
44 Shop machinery.
This account shall include the cost of machinery and other apparatus
in shops and engine houses, including the cost of special foundations
and installation and cost of small hand tools necessary first to equip a
shop.
List of Shop Machinery
Ash conveyors.
Air compressors.
Belting.
Blowers.
Boilers for furnishing power.
Boring machines.
Cars, motor.
Cars, push.
Cranes.
Drilling machines.
Drop tables.
Forges.
Framing machines.
Furnaces.
Grinding and polishing machines.
Hoists.
Hydraulic jacks.
Lathes.
Lifting magnets.
Metal chimneys.
Milling machines.
Motors.
Pipe cutting and threading machines.
Planers.
Pneumatic hammers.
Power equipment.
Punches.
Riveters.
Saws.
Shafting.
Shapers.
Slotters.
Stationary engines.
Steam hammers.
Vises.
Welding machines.
Woodworking machines.
Note A: The cost of power-plant machinery and other apparatus for
shop purposes, when located in distinct buildings, shall be included in
account 45, ``Power-plant machinery.''
Note B: The cost of foundations other than those special to
particular machines and other apparatus shall be included in the cost of
the building and not in this account.
45 Power-plant machinery.
This account shall include the cost of machinery and other apparatus
in power plants and substations for generating and transforming power
used for the operation of trains and cars or to furnish power, heat, and
light for stations, shops, and general purposes, and also the cost of
foundations special to particular machines or other apparatus including
the cost of installation.
Items
Air compressors.
Ash-conveying machinery.
Battery-charging apparatus.
Boiler-room appliances and tools.
Boilers and fittings.
Circuit breakers.
Furnaces.
Ice-manufacturing machinery and apparatus.
Lubricating devices.
Mechanical stokers.
Metal stacks on boilers.
[[Page 61]]
Refrigerating--machinery and apparatus.
Rotary converters.
Sewer connection for machinery.
Coal-conveying machinery.
Condensers.
Cranes.
Draft machinery.
Dynamos.
Engine-room appliances and tools.
Feed water heaters.
Special foundations for machines.
Steam-distribution systems within the plant.
Switchboards.
Tanks.
Tractors, trailers, and trucks, permanently assigned to power plants.
Transformers.
Turbines.
Water meters.
Well pumps.
Note A: The cost of power machinery and other apparatus installed in
a shop as part of the shop equipment shall be included in account 44,
``Shop machinery.''
Note B: The cost of power machinery and other apparatus installed in
station and office buildings shall be included in account 16, ``Station
and office buildings.''
Note C: The cost of buildings and the power machinery and other
apparatus of plants used primarily for operating signals and
interlockers shall be included in account 27, ``Signals and
interlockers.''
Note D: The cost of foundations other than those special to
particular machines and other apparatus shall be included in the cost of
the building and not in this account.
Note E: The cost of machinery and buildings of detached plants for
producing power both for operating purposes and for sale shall be
included in this account and in account 29, ``Power plants,''
respectively. When plants are intended and used primarily for generating
power for sale to noncarriers the investment shall be included in
account 737, ``Property used in other than carrier operations.''
Equipment--Table of Contents
50 Equipment.
The several primary accounts included in this general account are
designed to show the cost of the several classes of equipment vehicles
and shop and power plant equipment owned by the carrier, or held under
equipment trust agreements or other contractual obligation for purchase
of the property.
52 Locomotives.
(a) This account shall include the cost of locomotives and tenders
purchased or built by the carrier, and of appurtenances, furniture, and
fixtures necessary to equip them for service, including the cost of
inspection, setting up, and trying out after receipt from builders, and
transportation charges to the carrier's line. This account may also
include the cost of spare engines carried on hand for the purpose of
temporarily replacing similar units removed from locomotives for
overhaul, repair or other reason.
(b) Records shall be maintained to reflect separately the investment
cost of locomotives on the basis of their initial identification for
depreciation purposes; i.e., road passenger, road freight, road
switching and yard switching.
List of Appurtenances to Locomotives
Airbrake equipment and hose.
Arm rests.
Brake fixtures.
Cab cushions.
Clocks.
Fire-extinguishing apparatus.
Gongs.
Headlamps.
Metallic packing.
Pneumatic sanding equipment.
Radio equipment, permanently attached.
Seat boxes.
Signal lamps.
Speed recorders.
Steam-gauge lamps.
Steam-heat equipment and hose.
Storm doors.
Tool boxes.
Train-signal equipment and hose.
Note: Cars with motor equipment are not to be classed as
locomotives.
53 Freight-train cars.
This account shall include the cost of freight-train cars of all
classes, such as motor-driven cars, purchased or built by the carrier,
including all appurtenances, furniture, and fixtures necessary to equip
them for service, and the cost of inspection and transportation charges
to the carrier's line.
List of Freight-Train Cars
Automobile.
Ballast (commercial).
Beer.
Box.
Cabin.
Caboose.
Charcoal.
Coal.
Coke.
Dump (commercial).
[[Page 62]]
Express.
Flat.
Fruit.
Furniture.
Gondola.
Gondola (hopper).
Gondola (long).
Hay.
Lime.
Mail.
Oil tank.
Ore.
Logging.
Platform.
Polling.
Poultry.
Produce.
Rack.
Refrigerator.
Stock.
Tank and water (when used as commercial cars).
List of Appurtenances to Freight-Train Cars
Air-brake equipment, including hose.
Cooking equipment and utensils.
Heating units.
Lamps and fixtures.
Loading devices.
Refrigeration units.
Seats.
Speed recorders.
Train-signal equipment, including hose.
Water tanks.
54 Passenger-train cars.
This account shall include the cost of passenger-train cars of all
classes, such as motor-driven cars, purchased or built by the carrier,
including all appurtenances, furniture, and fixtures necessary to equip
them for service, and cost of inspection and transportation charges to
the carrier's line.
List of Passenger-Train Cars
Automobile.
Baggage.
Baggage-express.
Baggage-mail.
Baggage-mail-express.
Buffet.
Cafe, chair, and club.
Dining.
Library.
Milk.
Observation.
Parlor.
Parlor-baggage.
Passenger.
Passenger-baggage.
Passenger-baggage-mail.
Postal.
Refrigerator-express.
Sleeping.
Smoking.
Tourists.
List of Appurtenances to Passenger-Train Cars
Air-brake equipment including hose.
Bedding.
Chairs.
Coat hooks.
Curtains and fixtures.
Cushions.
Electric bells.
Floor coverings.
Heating equipment.
Ice boxes.
Ice tanks.
Kitchen equipment and utensils.
Lighting equipment.
Mail catchers.
Parcel racks.
Ranges and boilers.
Seats.
Speed recorders.
Steam-heat hose.
Table china.
Table glassware.
Table linen.
Table silver.
Toilet equipment.
Train-signal equipment, including hose.
Water tanks.
55 Highway revenue equipment.
(a) This account shall include the cost of highway vehicles used in
revenue transportation service, including pickup and delivery service,
substitute line-haul service, and TOFC/COFC service; also the cost of
appurtenances (such as radio communication equipment) necessary to equip
them for service, and the inspection and transportation costs and
charges required for delivery of the vehicles into the carrier's revenue
service.
(b) Records shall be maintained to identify the carrier's investment
in the following equipment, including appurtenances:
List of Highway Revenue Equipment
Bogies.
Buses.
Chassis.
Containers.
Semi-trailers.
Tractors.
Trailers.
Trucks.
[[Page 63]]
List of Appurtenances to Highway Revenue Equipment
Fire extinguishers.
Heating units.
Radio communication equipment.
Refrigeration units.
Rigging equipment.
Road dollies.
Tarpaulins.
Note: The cost of trucks and tractors, which are used exclusively at
TOFC/COFC terminals for loading and unloading trailers and containers on
and from flat cars shall be charged to account 25, ``TOFC/COFC
terminals.''
56 Floating equipment.
This account shall include the cost of marine or floating equipment
of all kinds except work equipment, purchased or built by the carrier,
including all appurtenances, furniture, and fixtures necessary to equip
it for service, and cost of inspection and transportation charges to the
carrier's line.
List of Floating Equipment
Barges.
Canal boats.
Car and other floats.
Ferryboats.
Lighters.
Power launches.
Power lighters.
Scows.
Steam boats.
Steamships.
Transfer boats.
Tugboats.
List f Appurtenances to Floating Equipment
Anchors.
Barometers.
Beds and bedding.
Binnacle lamps.
Blocks and tackle.
China, crockery, and glassware.
Chronometers.
Compasses.
Desks and furniture.
Engines and foundations.
Fire buckets and extinguishers.
Floor coverings.
Gangplanks.
Heating equipment
Hoisting equipment.
Kitchen equipment.
Life preservers.
Lighting equipment.
Linen.
Logs.
Machinery and foundations.
Masts.
Boilers and foundations.
Cables.
Capstan bars.
Charts.
Pianos and other musical instruments.
Pumps.
Railings.
Rigging.
Scales.
Seats, chairs, and cushions.
Spyglasses and telescopes.
Steam distribution systems.
Steering equipment.
Ticket cases.
Tool boxes and tools.
Tracks on car floats.
Ventilating equipment.
57 Work equipment.
This account shall include the cost of work equipment, including
motor-driven equipment, purchased or built by the carrier; cost of
appurtenances, furniture, and fixtures necessary to equip it for
service; and cost of inspection and transportation charges to the
carrier's line.
List of Rail Work Equipment
Air-brake instruction cars.
Ballast cars.
Ballast unloader cars.
Boarding cars.
Bridge cars.
Business cars.
Camp cars.
Cinder cars.
Concrete mixers (mounted).
Derrick cars.
Dirt spreaders (mounted).
Ditching cars.
Dump cars.
Dynamometer cars.
Gas tank cars.
Grading cars.
Gravel cars.
Indicator cars.
Locomotive tanks used permanently as water cars.
Locomotives.
Officers' cars.
Outfit cars.
Painters' cars.
Pay cars.
Pile drivers (mounted).
Rail cars.
Rail saws (mounted).
Salt cars.
Sanding cars.
Scale test cars.
Scraper cars.
Snow dozers.
Snow drags.
Snow plows (moved by but not attached to locomotives).
[[Page 64]]
Sprinkling cars.
Steam shovels.
Steam wrecking derricks.
Supply cars.
Sweeper cars.
Tool cars.
Tool and block cars.
Water cars.
Weed burners (mounted).
Wrecking cars.
List of Floating Work Equipment
Derricks.
Dredges.
Pile drivers.
58 Miscellaneous equipment.
(a) This account shall include the cost of automobiles, trucks and
other highway equipment not used in revenue transportation service and
not provided for elsewhere; the cost of airplanes; the cost of
appurtenances (such as radio communication equipment) necessary to equip
them for service; and the inspection and transportation costs and
charges required for delivery of the vehicles to the carrier.
(b) The cost of on and/or off-track automotive vehicles, which are
permanently equipped with special-purpose machinery and used exclusively
in maintenance of way and structures, shall be charged to account 37,
Roadway machines.
List of Miscellaneous Equipment
Airplanes.
Automobiles.
Buses.
Emergency repair vehicles.
Road dollies.
Semi-trailers.
Tractors.
Trailers.
Trucks.
Wreckers.
List of Appurtenances to Miscellaneous Equipment
Fire extinguisher.
Radio communication equipment.
Rigging equipment.
Tarpaulins.
59 Computer systems and word processing equipment.
This account shall include the cost of mainframe and mini-computers
and data processing equipment as well as the cost of word processing
equipment that is not dedicated to a particular function. Essentially
this account consists of all computer-related equipment that remains
under the control of the data processing department. This account shall
also include the cost of foundations, power supply, fixtures,
appurtenances and other devices to prepare this equipment for use.
Items
Mainframes, Mini-computers, Word processing systems, Printers,
Monitors, Modems, Storage devices.
Note A: The cost of micro computers, data processing equipment, and
word processing equipment which are an integral part of and essential to
the operation of a separate facility shall be charged to the appropriate
property account for that facility.
Note B: Carriers desiring to adopt other methods of accounting for
computers and word processing equipment that are considered more
suitable for their operational structure shall submit justification and
supporting documents to the Board for consideration and decision.
[52 FR 4326, Feb. 11, 1987]
General Expenditures--Table of Contents
70 General expenditures.
The primary accounts of this general account are designed to include
expenditures made in connection with the acquisition and construction of
original road and equipment, and with extension, additions, and
betterments to road and equipment property, when such expenditures
cannot properly be included in any of the foregoing accounts as a part
of the cost of any specific work. When assignable, such expenditures
shall be included in the cost of the property for which the expenditures
occurred.
76 Interest during construction.
(a) When any bonds, notes, or other evidences of indebtedness are
sold, or any interest-bearing debt is incurred for acquisition and
construction of original road and equipment, extensions, additions, and
betterments, the interest accruing on the part of the debt representing
the cost of property chargeable to road and equipment accounts (less
interest, if any, allowed by depositaries on unexpended balances) after
such funds become available for
[[Page 65]]
use and before the receipt or the completion or coming into service of
the property so acquired shall be charged to this account.
(b) When such securities are sold at a premium, the proportion of
such premium assignable to the time between the date of the actual
issuance of the securities and the time when the property acquired or
the improvement made becomes available for service shall be credited to
this account.
(c) This account shall also include such proportion of the discount
and expense on funded debt issued for the acquisition of original road,
original equipment, road extensions, additions, and betterments, as is
equitably assignable to the period between the date of the actual
issuance of securities and the time when the property acquired or the
improvement made become available for the service for which it is
intended. The proportion of discount and expense thus chargeable shall
be determined by the ratio between the period prior to the completion or
coming into service of the facilities or improvements acquired and the
period of the entire life of the securities issued.
Note A: Interest on bonds, notes, or other evidences of indebtedness
accruing before the proceeds from the sale of the securities become
available for use shall not be included in this account, nor shall there
be included any interest accruing after the property with respect to
which the proceeds are expended is received or becomes available for use
in connection with commercial service.
Note B: If securities issued or assumed by the carrier are
subsequently sold or exchanged by or for the carrier, the excess of the
par value and accrued interest of the securities over the actual money
value of the consideration received shall be deemed a discount. In no
case (except as provided in the third paragraph of this account) shall
discount be included as part of the cost of items included in the
accounts prescribed in this classification.
Note C: Whenever interest, premium, or discount assignable to the
construction period is incurred in connection with an expenditure
covered by some specific road and equipment account or accounts, such
interest, premium, or discount shall be charged directly to the specific
accounts to which it is related. Unless provided for otherwise, interest
costs shall be capitalized in accordance with generally accepted
accounting principles.
Note D: This account shall not include interest during the
construction period on the carrier's own funds expended in connection
with the acquisition or construction of original road and equipment,
extensions, additions, and betterments.
(5 U.S.C. 553; 49 U.S.C. 10321)
[42 FR 35017, July 7, 1977, as amended at 46 FR 10920, Feb. 5, 1981]
Other Property Accounts--Table of Contents
80 Other elements of investment.
(a) This account shall include amounts resulting from adjustment of
the primary property accounts to conform with cost of property in
valuation records. The amount in this account shall be cleared on a
consistent basis as property is retired from service or otherwise in
accordance with the rules in paragraphs (b), (c), and (d) of this
account. Any material amount in this account assignable to property
previously retired from service shall be cleared immediately.
(b) When property is retired from service, an equitable portion of
the balance in this account assignable to such property shall be cleared
when the retirement entry is made. The amount so cleared, when a debit,
shall be charged to account 551, Miscellaneous income charges, or, when
a credit, shall be recorded in account 519, Miscellaneous income. The
exception to this general rule with respect to a credit balance
assignable to property retired is that when property classified as
depreciable is retired from service and the balance in the accumulated
depreciation account for the property is materially deficient, because
of sudden retirement or other unusual cause, the portion of a credit
balance cleared for the retirement, equal to the deficiency, shall be
applied to reduce the amount of loss otherwise chargeable to the
accumulated depreciation account.
(c) A carrier may apply to the Board for authority to clear the
entire balance from this account immediately or amortize the balance
over a short period of time by appropriate inclusion in account 616,
Other debits to retained earnings, or account 606 Other credits to
retained earnings. Any amount so authorized or directed by the Board to
be
[[Page 66]]
cleared and written off to retained income shall be in lieu of amounts
includible in accounts indicated in paragraph (b).
(d) Other plans for clearance, disposition, or classification of a
balance in this account in conformity with sound accounting principles
may be submitted to the Board with suitable details for consideration.
This includes application for disposition of a balance in this account
attributable to reduction of capitalization in a reorganization. An
accounting procedure so applied for shall become effective only after
Board approval. Each carrier shall maintain a record of items initially
included in and cleared later from this account and the basis used in
computing such items.
Note: The amounts attributable to past mergers, consolidations and
purchases of property included in this account shall be merged with the
adjustment made pursuant to paragraph (a) of this text.
90 Construction in progress.
This account shall include expenditures incurred by the carrier in
the process of constructing road and equipment with its own forces or
under contract during the period prior to the time property is placed in
transportation operations, including cost of materials and supplies
located at point of use and of necessary land acquired for such
projects. When a project is completed or when a segment of a large
project is completed and placed in service, the cost of the completed
project or the completed segment thereof shall be transferred to the
appropriate road and equipment primary accounts. Separate subaccounts
may be maintained for road, equipment, or other classes of expenditures.
Expenditures for relatively unimportant projects may be included
directly in primary accounts.
RAILWAY OPERATING REVENUE ACCOUNTS--Table of Contents
Transportation Revenue Accounts--Table of Contents
100 Transportation; rail line.
The primary accounts included in this general account are designed
to show amounts of money which the carrier becomes entitled to receive
or which accrue to its benefit from services rendered in transporting
property or persons by rail line. The detail accounts include in this
general account series are summarized in account 501, Railway Operating
Revenues.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
101 Freight.
(a) This account shall include revenue from the transportation of
freight and from transit, stop, and reconsigning privileges, upon the
basis of lawful tariff rates.
(b) This account shall include collections in excess of tariff
charges, except where such amounts are segregated and held subject to
refund.
(c) Proceeds derived from the sale of unclaimed and refused freight
which has been transported in accordance with the contract of shipment
shall be credited to this account in cases where such items can be
readily identified. Uncollected tariff charges on such shipments shall
be charged to this account.
(d) Amounts determined to be uncollectible shall be accounted for in
accordance with the text of account 63-61-00 General--Uncollectible
accounts.
Items To Be Credited
(a) Revenue upon the basis of local freight tariff rates, regardless
of class of train in which the freight is transported.
(b) The carrier's proportion of revenue upon the basis of through
freight tariff rates, regardless of class of train on which the freight
is transported.
(c) Revenue from transportation of mail matter, and empty mail
pouches, at freight rates.
(d) Revenue from transportation of freight on special trains at
rates based on weights of shipments.
(e) Revenue on basis of classifications and freight tariffs from
transportation of caretakers of freight shipments.
(f) Revenue from reconsigning privileges.
(g) Revenue from stop privileges.
(h) Revenue from transit privileges.
(i) Revenue upon the basis of arbitraries out of freight, rates for
water transfers (ferriage, lighterage, and floatage).
(j) Revenue from transportation of trailers and containers on flat
cars in TOFC/COFC service upon the basis of all-rail line-haul freight
tariff rates and under arrangements for motor carrier-railroad joint
haul, and from the loading and unloading of trailers and containers on
and from flat cars upon
[[Page 67]]
the basis of tariff rates and under arrangements for motor carrier-
railroad joint haul.
Items To Be Charged
(a) Amounts paid as bridge and ferry arbitraries on freight.
(b) Amounts paid for completing a haul.
(c) Amounts paid for elevation of freight.
(d) Amounts paid for switching services, in connection with the
transportation of freight, on the basis of switching tariffs, and
allowances out of through rates, including amounts paid for switching
empty cars in connection with a freight revenue movement.
(e) Amounts paid for transferring freight between stations.
(f) Arbitraries and allowances to others for lighterage and
wharfage.
(g) The carrier's proportion of overcharges resulting from the use
of erroneous rates, weights, classifications or computations.
(h) The carrier's proportion of refunds on account of errors in
routing and billing.
(i) The carrier's proportion of uncollected revenue on freight lost
or destroyed in transit.
(j) The carrier's proportion of uncollected tariff charges on
damaged shipments for which charges neither shipper nor consignee is
liable.
(k) Amounts paid on basis of tariff rates for loading and unloading
livestock.
(l) Amounts paid to motor truck companies for hauling trailers and
containers to and from TOFC/COFC terminals, and allowances to shippers
who perform such service on the basis of tariff rates.
Note A: Amounts paid for switching empty cars other than in
connection with loaded movements shall be charged to operating expense
account 61-32-XX, ``General--Other Expenses--Transportation--Yard--
Freight,'' except that amounts paid for switching equipment for repairs
shall be included in the appropriate equipment repair accounts.
Note B: Other carriers' proportion of revenue and of uncollectible
undercharges paid by the carrier on account of its errors in routing and
billing shall be charged to operating expense account 61-35-76,
``General--Other Expenses--Transportation--Administrative Support.''
Note C: When a lessee company transports freight over the tracks of
another carrier on the basis of a proportion of revenues under a joint
arrangement, it shall include the entire compensation in its revenues
and statistics, charging the appropriate joint facility expense and
rental accounts with the amounts paid the lessor company, and the lessor
company shall credit the corresponding accounts.
Note D: Revenue from the transportation of caretakers of freight
shipments, when not included as a part of the freight charges on the
waybill covering the freight shipments, shall be credited to account
102, ``Passenger.''
Note E: This account shall be maintained so as to show separately
payments and allowances for (a) terminal collection and delivery
services when performed in connection with line-haul transportation of
freight on the basis of freight tariff rates, further separated between
(1) TOFC/COFC service, and (2) all other freight service; also (b)
payments for switching services when performed in connection with line-
haul transportation of freight on the basis of switching tariffs and
allowances out of freight rates, including the switching of empty cars
in connection with a revenue movement, and (c) payments on basis of
tariff rates for loading and unloading livestock.
102 Passenger.
This account shall include the revenue from transportation of
passengers at passenger tariff fares, from the transportation of
passengers at special fares as provided by law, and from incidental
charges in connection therewith.
Items To Be Credited
(a) Revenue from local passenger fares.
(b) The carrier's proportion of revenue from interline passenger
fares.
(c) Revenue from extra fares.
(d) Revenue from additional fares or charges for exclusive use of a
passenger car, drawing room, compartment, bedroom, etc.
(e) Revenue from mileage and scrip coupons honored for all services
covered by this account.
(f) Revenue from transportation of passengers in special cars or on
special trains when charge is based on passenger fare per capita,
regardless of the number of passengers actually transported.
(g) Revenue from a guaranteed minimum amount not based on per capita
fare, for transportation of passengers on special or chartered trains.
(h) Cash fare penalty collections.
(i) Unclaimed collections and deposits for transportation of
passengers.
(j) Passenger fare overcharges.
(k) Revenue from transportation of corpses, based on passenger
fares.
(l) Revenue from water transfers (ferriage), bridge tolls, and
transfers between railway stations or between railway stations and
docks, received as arbitraries in divisions of passenger fares.
Items To Be Charged
(a) Amounts paid as bridge tolls, and also for ferry, depot to depot
and depot to dock passenger transfer service.
[[Page 68]]
(b) Amounts paid for switching in completing a passenger
transportation movement.
(c) Amounts paid for switching empty passenger-train cars in
connection with transportation of passengers. (See note C.)
(d) Redemptions of unused and partially unused local tickets and
redemptions of carrier's proportions of unused and partially unused
interline tickets.
(e) Refund of extra fares, cash fare penalty collections, and
overcharges in excess of tariff fares.
(f) Uncollectible undercharges.
Note A: Gross receipts from the sale of mileage tickets, and scrip
books shall be credited to a suspense account. The suspense account
shall be charged and this account credited with the value of coupons as
honored, in connection with any of the services provided for in Items To
Be Credited.
Note B: When a lessee company transports passengers over the tracks
of another company under a joint arrangement upon the basis of a
proportion of the passenger revenue, it shall include the entire
compensation in its passenger revenue and statistics, charging the
appropriate joint facility expense and rental accounts with the amounts
paid the lessor company and the lessor company shall credit the
corresponding joint facility accounts.
Note C: Amounts paid for switching empty passenger-train cars other
than in connection with loaded movements, shall be charged to account
61-42-XX. General--Other Expenses--Transportation--Yard--Passenger,
except that when switched for repairs, the amounts paid shall be
included in account 39-25-45, Purchased Services--Repairs Billed by
Others--Equipment--Other Equipment.
Note D: Amounts determined to be uncollectible shall be accounted
for in accordance with the text of account 63-62-00, General--
Uncollectible accounts.
103 Passenger-related.
This account shall include the revenue from the transportation of
baggage, packages, etc. on passenger trains at other than freight or
express tariff rates. This account shall also include the revenue from
berth and seat accommodations furnished in sleeping, parlor observation,
chair, and other special passenger cars, also the revenue derived from
the operation of passenger trains not provided for elsewhere, and dining
and buffet service.
The amounts recorded in this account shall not include aid in the form
of abatement or forgiveness of taxes, assumption by local governments of
station maintenance costs, and other similar special indirect benefits,
contributed by governmental agencies.
104 Switching.
(a) This account shall include the revenue from switching service
upon the basis of lawful tariff rates. To this account shall be credited
the carrier's revenue upon the basis of tariff rates, or the carrier's
allowance out of through rates, from the switching of cars of all kinds,
loaded or empty, either locally at a station or within a switching
district, between connecting lines, between local industries, or between
connecting lines and local industries; revenue upon the basis of
distinct tariff rates for trapcar and ferry-car service and for spotting
cars; also the revenue from interwork switching at industrial plants,
and the revenue from penalty switching incident to the improper delivery
of cars by other carriers.
(b) To this account shall be charged amounts paid others for
switching when such switching service is provided for in the switching
rate charged by the carrier.
Note: Penalty switching charges paid by the carrier shall be
included in expense account 61-32-XX, General--Other Expenses--
Transportation--Yard--Freight.
105 Water transfers.
(a) This account shall include the revenue, from the transfer by
water (ferriage, lighterage, and floatage) of passenger, freight,
vehicles and livestock, upon the basis of lawful local tariff rates.
(b) This account also shall include revenue from water transfers of
other traffic, such as the revenue from towing beyond lighterage limits
and all other towing for which an extra charge is made; insurance of
freight afloat when billed out at other than cost; storage of freight
afloat; grain overage in boats; pumping performed for outside parties;
and from other similar sources.
(c) To this account shall be charged amounts payable to other
companies or individuals for extra lighterage, extra towing, and for all
other service when such payments represent revenue collected and
credited to this account and not a direct expense.
[[Page 69]]
Note: No revenue shall be included in this account for water
transfers of passengers or shipments upon the basis of arbitraries out
of rates for transportation involving rail line haul.
106 Demurrage.
This account shall include the revenue from the detention of cars
incident to loading, unloading, reconsigning, and stops in transit upon
the basis of lawful tariffs for demurrage. This account shall also
include the revenue from the detention of trailers and containers used
in TOFC/COFC service, incident to loading and unloading, upon the basis
of tariff rates.
Note: This account shall be maintained so as to reflect separately
(1) revenue from detention of cars, and (2) revenue from detention of
trailers and containers used in TOFC/COFC service.
110 Incidental.
This account is designed to show the amounts which the carrier
becomes entitled to receive from services rendered incidentally with
rail-line and water-line transportation; for the use of facilities of
which the expenses for operation and maintenance are not separable from
railway expenses and from incidental sources not provided for elsewhere.
Among the items included in this account are revenues derived from (1)
hotels and restaurants, (2) operations conducted at stations and on
trains by individual or companies other than railway companies, (3)
storage, (4) the sale of electric power, (5) renting property operated
and maintained in connection with the property used in the carrier's
transportation operations and from railway operations not provided for
elsewhere.
Joint Facility Revenue Accounts--Table of Contents
120 Joint facility.
The primary accounts included in this general account are designed
to show the carrier's proportion of revenues collected by others in
connection with operation of joint facilities and the amount payable by
the carrier to other companies from operation of joint facilities.
121 Joint facility--credit.
This account shall include the carrier's proportion of revenue
collected by others in connection with the operation of joint tracks,
yards, terminals, and other facilities, including revenue from hotels,
restaurants, grain elevators, sale of power, and other miscellaneous
operations.
Note A: The purpose of this account is to show the amounts of
revenue from the operation of joint tracks, yards, terminals and other
facilities operated by other companies, which under existing contracts
or agreements are credited by the operating company to the tenant
companies which participate therein. The bill rendered by any creditor
company against a debtor company for the latter's proportion of the
expense of maintenance and operation of joint facilities, which includes
also a credit covering a proportion of the revenue to be paid over,
shall show the distribution of the credit for such proportion of the
revenue separately from the distribution of the expense of operation.
Note B: No credits shall be made to this account representing
amounts creditable by the operating company to primary accounts 101-103,
105 and 110.
122 Joint facility--debit.
This account shall include that proportion of revenue from the
operation of joint tracks, yards, terminals, and other facilities, which
is creditable to other companies, including revenue from hotels,
restaurants, grain elevators, sale of power, and other miscellaneous
operations.
Note A: The purpose of this account is to show the amount of revenue
from operation of a terminal company or other carrier which, under the
terms of existing contracts or agreements covering the joint use of
tracks, yards, and other facilities, is credited to other carriers that
participate in the benefits from such joint use. The bill rendered by a
creditor company against a debtor company for the latter's proportion of
expense of maintaining and operating joint facilities, which includes a
credit covering the debtor company's proportion of the revenues from
operation of such joint facilities, shall indicate separately the proper
distribution of both the revenues and the expenses included in the bill,
and such distribution shall be adhered to by the debtor.
Note B: No debits shall be made to this account representing amounts
creditable by the operating company to primary accounts 101-103, 105 and
110.
[[Page 70]]
OPERATING EXPENSE ACCOUNTS--Table of Contents
Source: 52 FR 4326, Feb. 11, 1987, unless otherwise noted.
Instruction
(1) The operating expense accounts use a six-digit code. The first
two digits denote natural expense, the second two digits denote
activity/subactivity, and the third two digits denote detailed
functions. [See Table A for an overview of the coding structure and
Tables B-E for detailed functions.]
(2) The operating expense account explanations use a three-tier
format. Section 1 contains natural expense explanations with applicable
activity/subactivity and function assignment. Section 2 details the
activity/subactivity explanations. Section 3 explains the functions
appropriate for each activity/subactivity. To obtain a complete
explanation for a particular account, refer to section 1 to locate the
natural expense and activity/subactivity (first four digits) and read
the appropriate account text. Accounts that are assigned to functions
are appropriately listed. For further information, refer to section 2
and section 3.
(3) All accounts listed in Table A and section 1 are for freight
only. Refer to Table F for applicable passenger or common account codes.
Account numbers designated with an asterisk in section 1 denote freight
only accounts, while other accounts are used for both freight and
passenger or common accounts.
(4) All expense assigned to common operating accounts shall be
allocated to freight and passenger accounts in accordance with Part 1242
of this chapter.
[[Page 71]]
Table A--Coding Structure for Railway Operating Expense Accounts \1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
XX-00 Way and structures XX-10 Equipment XX-20 Transportation XX-30, 40, 50 XX-60
---------------------------------------------------------------------------------------------------------------------------------------------
Train
Freight Other and Specialized Administrative General and
Control Running Switching Other Locomotive cars equipment Train Yard yard SVDS support administrative
common
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Freight \2\....................................... XX-00 XX-11 XX-12 XX-13 XX-21 XX-22 XX-23 XX-31 XX-32 XX-33 XX-34 XX-35 XX-61
Personnel......................................... 10-00 ....... ......... ....... .......... ....... ......... ....... ....... ....... ........... .............. ..............
Salaries and wages............................ 11-00 \3\ 11- \3\ 11-12 \3\ 11- \3\ 11-21 \3\ 11- 11-23 \3\ 11- \3\ 11- \3\ 11- \3\ 11-34 \3\ 11-35 \3\ 11-61
11 13 22 31 32 33
Fringe benefits............................... 12-00 12-11 12-12 12-13 12-21 12-22 12-23 12-31 12-32 12-33 12-34 12-35 12-61
Materiel.......................................... 20-00 ....... ......... ....... .......... ....... ......... ....... ....... ....... ........... .............. ..............
Materiel, tools, supp, fuel, lubricants....... 21-00 \3\ 21- \3\ 21-12 \3\ 21- \3\ 21-21 \3\ 21- \3\ 21-23 \3\ 21- \3\ 21- \3\ 21- \3\ 21-34 \3\ 21-35 \3\ 21-61
11 13 22 31 32 33
Purchased services................................ 30-00 ....... ......... ....... .......... ....... ......... ....... ....... ....... ........... .............. ..............
Lease rentals--DR............................. 31-00 31-11 31-12 31-13 31-21 31-22 31-23 ....... ....... ....... ........... .............. ..............
Lease rentals--CR............................. 32-00 32-11 32-12 32-13 32-21 32-22 32-23 ....... ....... ....... ........... .............. ..............
Jt. Fac. Rent--DR............................. 33-00 33-11 33-12 33-13 33-21 33-22 33-23 ....... ....... ....... ........... .............. ..............
Jt. Fac. Rent--CR............................. 34-00 34-11 34-12 34-13 34-21 34-22 34-23 ....... ....... ....... ........... .............. ..............
Other rents--DR............................... 35-00 35-11 35-12 35-13 35-21 35-22 35-23 ....... ....... ....... ........... .............. ..............
Other rents--CR............................... 36-00 36-11 36-12 36-13 36-21 36-22 36-23 ....... ....... ....... ........... .............. ..............
Jt. facility--DR.............................. 37-00 37-11 37-12 37-13 37-21 37-22 37-23 37-31 37-32 ....... 37-34 37-35 37-61
Jt. facility--CR.............................. 38-00 38-11 38-12 38-13 38-21 38-22 38-23 38-31 38-32 ....... 38-34 38-35 38-61
Repairs billed by others--DR.................. 39-00 \3\ 39- \3\ 39-12 \3\ 39- \3\ 39-21 \3\ 39- \3\ 39-23 ....... ....... ....... ........... .............. ..............
11 13 22
Repairs billed to others--CR.................. 40-00 \3\ 40- \3\ 40-12 \3\ 40- \3\ 40-21 \3\ 40- \3\ 40-23 ....... ....... ....... ........... .............. ..............
11 13 22
Other purchase services....................... 41-00 \3\ 41- \3\ 41-12 \3\ 41- \3\ 41-21 \3\ 41- \3\ 41-23 \3\ 41- \3\ 41- \3\ 41- \3\ 41-34 \3\ 41-35 \3\ 41-61
11 13 22 31 32 33
Claims and insurance.............................. 50-00 ....... ......... ....... .......... ....... ......... ....... ....... ....... ........... .............. ..............
Loss damage claims............................ 51-00 ....... ......... ....... .......... ....... ......... 51-31 51-32 51-33 51-34 .............. ..............
Other casualties.............................. 52-00 52-11 52-12 52-13 52-21 52-22 52-23 52-31 52-32 ....... 52-34 52-35 52-61
Insurance..................................... 53-00 53-11 53-12 53-13 53-21 53-22 53-23 53-31 53-32 ....... 53-34 53-35 53-61
General........................................... 60-00 ....... ......... ....... .......... ....... ......... ....... ....... ....... ........... .............. ..............
Other expenses................................ 61-00 \3\ 61- \3\ 61-12 \3\ 61- \3\ 61-21 \3\ 61- \3\ 61-23 \3\ 61- \3\ 61- ....... \3\ 61-34 \3\ 61-35 \3\ 61-61
11 13 22 31 32
Depreciation.................................. 62-00 62-11 62-12 62-13 62-21 62-22 62-23 ....... ....... ....... ........... .............. ..............
Uncollectible account......................... 63-00 ....... ......... ....... .......... ....... ......... ....... ....... ....... ........... .............. 63-61
Property taxes................................ 64-00 ....... ......... ....... .......... ....... ......... ....... ....... ....... ........... .............. 64-61
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Each operating expense account has a six-digit code divided into three two-digit groups. The first two-digit group denotes the natural expense [see control column], the second group
denotes the activity/subactivity for freight, passenger or common service [see Table F]; and the third group signifies applicable function assignment [see Tables B, C, D & E].
\2\ The account numbers shown on this matrix are for freight only. The account numbers for passenger and common are derived by applying the natural expense code (first two digits) to the
activity codes shown in Table F. Natural expenses are used only in the same activities as shown for freight.
\3\ Expenses shall be reported by applicable functions [see account text].
[[Page 72]]
Table B--Function Code Use--Way and Structures
----------------------------------------------------------------------------------------------------------------
Running Switching Other
--------------------------------------------
Code Functions \1\
F P C F P C F P C
----------------------------------------------------------------------------------------------------------------
ADMINISTRATION
02 Track...................................................... ... ... ... ... ... ... X X X
03 Bridges and buildings...................................... ... ... ... ... ... ... X X X
04 Signals.................................................... ... ... ... ... ... ... X X X
05 Communications............................................. ... ... ... ... ... ... X X X
06 Other...................................................... ... ... ... ... ... ... X X X
REPAIRS AND MAINTENANCE
10 Roadway.................................................... X X X X X X ... ... ...
11 Tunnels and subways........................................ X X X X X X ... ... ...
12 Bridges and culverts....................................... X X X X X X ... ... ...
13 Ties....................................................... X X X X X X ... ... ...
14 Rails and other track material............................. X X X X X X ... ... ...
16 Ballast.................................................... X X X X X X ... ... ...
19 Signals and interlockers................................... X X X X X X ... ... ...
20 Communication systems...................................... ... ... ... ... ... ... X X X
21 Power systems.............................................. ... ... ... ... ... ... X X X
22 Highway grade crossings.................................... X X X X X X ... ... ...
23 Station and office buildings............................... ... ... ... ... ... ... X X X
24 Shop bldgs.--Locomotives................................... ... ... ... ... ... ... X X X
25 Shop bldgs.--Freight cars.................................. ... ... ... ... ... ... X
26 Shop bldgs.--Other equipment............................... ... ... ... ... ... ... X X X
27 Locomotive servicing facilities............................ ... ... ... ... ... ... X X X
28 Misc. buildings and structures............................. ... ... ... ... ... ... X X X
29 Coal terminals............................................. ... ... ... ... ... ... X
30 Ore terminals.............................................. ... ... ... ... ... ... X
31 TOFC/COFC terminals........................................ ... ... ... ... ... ... X
32 Other marine terminals..................................... ... ... ... ... ... ... X
33 Motor vehicle loading and distribution facilities.......... ... ... ... ... ... ... X
35 Facilities--Other specialized services operations.......... ... ... ... ... ... ... X
36 Roadway machines........................................... ... ... ... ... ... ... X X X
37 Small tools and supplies................................... ... ... ... ... ... ... X X X
38 Snow removal............................................... ... ... ... ... ... ... X X X
39 Dismantling retired property............................... X X X X X X X X X
48 Road property damaged...................................... X X X X X X X X X
OTHER
99 Other...................................................... X X X X X X X X X
----------------------------------------------------------------------------------------------------------------
\1\ F--Freight; P--Passenger; C--Common.
Table C--Function Code Use--Equipment
----------------------------------------------------------------------------------------------------------------
Locomotives Freight Cars Other
------------------------------- Equipment
Code Functions --------------
\1\F P C F P C F P C
----------------------------------------------------------------------------------------------------------------
ADMINISTRATION
01 Administration............................................ X X X X ... ... X X X
REPAIR AND MAINTENANCE
39 Dismantling retired property.............................. X X X X ... ... X X X
41 Locomotives............................................... X X X ... ... ... ... ... ...
42 Freight cars.............................................. .... ... ... X ... ... ... ... ...
43 Trucks, trailers, containers in revenue service........... .... ... ... ... ... ... X ... ...
44 Floating equipment in revenue service..................... .... ... ... ... ... ... X ... ...
45 Passenger and other revenue equipment..................... .... ... ... ... ... ... X X X
46 Computer systems and word processing equipment............ .... ... ... ... ... ... X X X
47 Work and other nonrevenue equipment....................... .... ... ... ... ... ... X X X
48 Equipment damaged......................................... X X X X ... ... X X X
49 Shop machinery--locomotives............................... .... ... ... ... ... ... X X X
50 Shop machinery--freight cars.............................. .... ... ... ... ... ... X X X
51 Shop machinery--other equipment........................... .... ... ... ... ... ... X X X
99 Other..................................................... X X X X ... ... X X X
----------------------------------------------------------------------------------------------------------------
\1\ F--Freight; P--Passenger; C--Common.
[[Page 73]]
Table D--Function Code Use--Transportation
----------------------------------------------------------------------------------------------------------------
Train Yard Train and Specialized Administrative
------------------------------ yard common services support
Code ---------------------------------------------
*F P C F P C F P C F P C F P C
----------------------------------------------------------------------------------------------------------------
ADMINISTRATION
01 ............................ X X X X X X ... ... ... X ... ... X X X
OPERATIONS
56 Engine...................... X X X ... ... ... ... ... ... ... ... ... .... ... ...
57 Train crews................. X X X ... ... ... ... ... ... ... ... ... .... ... ...
58 Dispatching trains.......... X X X ... ... ... ... ... ... ... ... ... .... ... ...
59 Operating switches, signals, X X X X X X ... ... ... ... ... ... .... ... ...
interlockers, retarders,
humps......................
60 Operating drawbridges....... X X X ... ... ... ... ... ... ... ... ... .... ... ...
61 Highway crossing protection. X X X ... ... ... ... ... ... ... ... ... .... ... ...
62 Train inspection and X X X ... ... ... ... ... ... ... ... ... .... ... ...
lubrication................
63 Clearing wrecks............. X X X X X X ... ... ... ... ... ... .... ... ...
64 Switch crews................ ... ... ... X X X ... ... ... ... ... ... .... ... ...
65 Controlling operations...... ... ... ... X X X ... ... ... ... ... ... .... ... ...
66 Yard and terminal clerical.. ... ... ... X X X ... ... ... ... ... ... .... ... ...
67 Locomotive fuel............. X X X X X X ... ... ... ... ... ... .... ... ...
68 Power purchased/produced for X X X X X X ... ... ... ... ... ... .... ... ...
motive power...............
69 Servicing locomotives....... X X X X X X ... ... ... ... ... ... .... ... ...
70 Cleaning car interior....... ... ... ... ... ... ... X X X ... ... ... .... ... ...
71 Adjusting, transferring ... ... ... ... ... ... X ... ... ... ... ... .... ... ...
loads......................
72 Car loading devices and ... ... ... ... ... ... X ... ... ... ... ... .... ... ...
grain doors................
73 Pick up and delivery, marine ... ... ... ... ... ... ... ... ... X ... ... .... ... ...
haul, rail substitute
service....................
74 Loading, unloading, local ... ... ... ... ... ... ... ... ... X ... ... .... ... ...
marine.....................
75 Protective services......... ... ... ... ... ... ... ... ... ... X ... ... .... ... ...
76 Clerks and accounting ... ... ... ... ... ... ... ... ... ... ... ... X X X
employees..................
77 Communications systems ... ... ... ... ... ... ... ... ... ... ... ... X X X
operations.................
78 Loss and damage claims ... ... ... ... ... ... ... ... ... ... ... ... X X X
processing.................
OTHER
99 Other....................... X X X X X X ... ... ... X ... ... X X X
----------------------------------------------------------------------------------------------------------------
[[Page 74]]
Table E--Functional Code Use--General and Administrative
------------------------------------------------------------------------
Code Functions Freight Passenger Common
------------------------------------------------------------------------
ADMINISTRATION
Administration.............. X X X
GENERAL
86 Accounting, auditing, X X X
finance....................
87 Management services and data X X X
and word processing........
88 Marketing................... X X X
89 Sales....................... X X X
90 Industrial development...... X
91 Personnel, labor relations.. X X X
92 Legal and secretarial....... X X X
93 Public relations and X X X
advertising................
94 Research and development.... X X X
OTHER
99 Other....................... X X X
------------------------------------------------------------------------
Table F--Activity/Subactivity Code Use
------------------------------------------------------------------------
Code
Activity/subactivity Freight passenger Common
------------------------------------------------------------------------
Way and structures:
Running...................... 11 14 17
Switching.................... 12 15 18
Other........................ 13 16 19
Equipment:
Locomotives.................. 21 24 26
Freight cars................. 22 N/A N/A
Other........................ 23 25 27
Transportation:
Train........................ 31 41 51
Yard......................... 32 42 52
Train and yard common........ 33 43 53
Specialized services......... 34 N/A N/A
Administrative support....... 35 45 55
General and administrative....... 61 62 63
------------------------------------------------------------------------
Section 1--Natural Expense Explanations*
Personnel--Table of Contents
Control--10-00-00
This account may be used as a control account for all accounts in
the Personnel Series: Salaries and Wages. Fringe Benefits Not Included
in Compensation.
Salaries and Wages--Control 11-00-00
This account series includes the compensation payable to employees
for services performed. It includes amounts payable in connection with
profit sharing and stock option plans that are part of employee
compensation. This account series also includes amounts of compensation
payable to employees for paid time off as a fringe benefit: Vacation
pay, holiday pay, sick pay, and other payments considered direct
compensation for time not worked. Amounts of labor billed by
contractors, other companies, and joint facilities, are not considered
salaries and wages of the carrier company and are not to be included in
this account group. Its components shall be distributed to the following
accounts in accordance with Instruction 1-12.
Salaries and Wages--Way and Structures--Running--11-11-XX
This account includes the compensation payable to all repair and
maintenance employees and others who are associated with the repair and
maintenance of the carrier's roadway and track on the line of road and
outside of classification yards. Compensation payable to officers and
technical and clerical employees shall only be assigned to Way and
Structures--Other. This account shall be subdivided by the following
functions:
Repair and Maintenance:
Roadway................................................. 11-11-10
Tunnels and Subways..................................... 11-11-11
Bridges and Culverts.................................... 11-11-12
[[Page 75]]
Ties.................................................... 11-11-13
Rails and Other Track Material.......................... 11-11-14
Ballast................................................. 11-11-16
Signals and Interlockers................................ 11-11-19
Highway Grade Crossings................................. 11-11-22
Dismantling Retired Property............................ 11-11-39
Road Property and Equipment Damaged..................... 11-11-48
Other--Other................................................ 11-11-99
Salaries and Wages--Way and Structures--Switching--11-12-XX
This account includes the compensation payable to all repair and
maintenance employees and others who are associated with the repair and
maintenance of the carrier's roadway and track within classification
yards and stations. Compensation payable to officers and technical and
clerical employees shall be assigned to Way and Structures--Other. This
account shall be subdivided by the following functions:
Repair and Maintenance:
Roadway................................................. 11-12-10
Tunnels and Subways..................................... 11-12-11
Bridges and Culverts.................................... 11-12-12
Ties.................................................... 11-12-13
Rails and Other Track Material.......................... 11-12-14
Ballast................................................. 11-12-16
Signals and Interlockers................................ 11-12-19
Highway Grade Crossings................................. 11-12-22
Dismantling Retired Property............................ 11-12-39
Road Property and Equipment Damaged..................... 11-12-48
Other--Other............................................ 11-12-99
Salaries and Wages--Way and Structures--Other--11-13-XX
This account includes the compensation payable to all repair and
maintenance employees and others who are associated with the repair and
maintenance of the carrier's structures other than roadway and track.
Each administration account (functions 02-06) includes the compensation
payable to all officers and technical and clerical employees associated
with the Way and Structures Activity. This account shall be subdivided
by the following functions:
Administration:
Track................................................... 11-13-02
Bridges and Buildings................................... 11-13-03
Signals................................................. 11-13-04
Communications.......................................... 11-13-05
Other................................................... 11-13-06
Repair and Maintenance:
Communication Systems................................... 11-13-20
Power Systems........................................... 11-13-21
Station and Office Buildings............................ 11-13-23
Shop Buildings--Locomotives............................. 11-13-24
Shop Buildings--Freight Cars............................ *11-13-25
Shop Buildings--Other................................... 11-13-26
Locomotive Servicing Facilities......................... 11-13-27
Miscellaneous Buildings and Structures.................. *11-13-28
Coal Terminals.......................................... *11-13-29
Ore Terminals........................................... *11-13-30
TOFC/COFC Terminals..................................... *11-13-31
Other Marine Terminals.................................. *11-13-32
Motor Vehicle Loading and Distribution Facilities....... *11-13-33
Facilities for Other Specialized Services Operations.... *11-13-35
Roadway Machines........................................ 11-13-36
Snow Removal............................................ 11-13-38
Dismantling Retired Property............................ 11-13-39
Road Property and Equipment Damaged..................... 11-13-48
Other--Other............................................ 11-13-99
Salaries and Wages--Equipment--Locomotives--11-21-XX
This account includes the compensation payable to all officers and
technical and clerical employees, repair and maintenance employees, and
others who are associated with the repair and maintenance of
locomotives, whether owned by the carrier or by others. This account
shall be subdivided by the following functions:
Administration--General..................................... 11-21-01
Repair and Maintenance:
Dismantling Retired Property............................ 11-21-39
Locomotives............................................. 11-21-41
Road Property and Equipment Damaged..................... 11-21-48
Other--Other................................................ 11-21-99
Salaries and Wages--Equipment--Freight Cars--11-22-XX*
This account includes the compensation payable to all officers,
technical and clerical employees, repair and maintenance employees, and
others, who are associated with the repair and maintenance of freight
cars, whether owned by the carrier or by others. This account shall be
subdivided by the following functions:
Administration--General..................................... 11-22-01
Repair and Maintenance:
Dismantling Retired Property............................ 11-22-39
Freight Cars............................................ 11-22-42
Road Property and Equipment Damaged..................... 11-22-48
Other--Other................................................ 11-22-99
Salaries and Wages--Equipment--Other Equipment--11-23-XX
This account includes the compensation payable to all officers,
technical and clerical employees, repair and maintenance employees, and
others, who are associated with the repair and maintenance of equipment
other than locomotives and freight cars, whether
[[Page 76]]
owned by the carrier or by others. This account shall be subdivided by
the following functions:
Administration--General..................................... 11-23-01
Repair and Maintenance:
Dismantling Retired Property............................ 11-23-39
Trucks, Trailers, Containers in Revenue Service......... *11-23-43
Floating Equipment--Revenue Service..................... *11-23-44
Passenger and Other Revenue Service..................... 11-23-45
Work and Other Non-Revenue Equipment.................... 11-23-47
Road Property and Equipment Damaged..................... 11-23-48
Shop Machinery--Locomotives............................. 11-23-49
Shop Machinery--Other Equipment......................... 11-23-51
Other--Other................................................ 11-23-99
Salaries and Wages--Transportation--Train--11-31-XX
This account includes the compensation payable to all officers,
technical and clerical employees, engine and train crews, and other
operational employees, who are associated with the dispatching and
operation of freight trains over the roadway and outside of
classification yards. This account shall be subdivided by the following
functions:
Administration--General..................................... 11-31-01
Operations:
Engine Crews............................................ 11-31-56
Train Crews............................................. 11-31-57
Dispatching Trains...................................... 11-31-58
Operating Switches, Signals, Interlockers, Retarders, 11-31-59
Humps..................................................
Operating Drawbridges................................... 11-31-60
Highway Crossing Protection............................. 11-31-61
Train Inspection and Lubrication........................ 11-31-62
Clearing Wrecks......................................... 11-31-63
Locomotive Fuel......................................... 11-31-67
Electric Power Purchased/Produced for Motive Power...... 11-31-68
Servicing Locomotives................................... 11-31-69
Other--Other................................................ 11-31-99
Salaries and Wages--Transportation--Yard--11-32-XX
This account includes the compensation payable to all officers,
technical and clerical employees, engine and train crews, and other
operational employees, who are associated with the movement of freight
cars within classification yards and in terminal switching and transfer
service. This account shall be subdivided by the following functions:
Administration--General..................................... 11-32-01
Operations:
Operating Switches, Signals, Interlockers, Retarders, 11-32-59
Humps..................................................
Clearing Wrecks......................................... 11-32-63
Switch Crews............................................ 11-32-64
Controlling Operations.................................. 11-32-65
Yard and Terminal Clerical.............................. 11-32-66
Locomotive Fuel......................................... 11-32-67
Electric Power Purchased/Produced for Motive Power...... 11-32-68
Servicing Locomotives................................... 11-32-69
Other--Other................................................ 11-32-99
Salaries and Wages--Transportation--Train and Yard--Common--11-33-XX
This account includes the compensation payable to all officers,
performing functions incurred on behalf of both train and yard
operations. This account shall be subdivided by the following functions:
Operations:
Cleaning Car Interiors.................................. 11-33-70
Adjusting and Transferring Loads........................ *11-33-71
Car Loading Devices and Grain Doors..................... *11-33-72
Salaries and Wages--Transportation--Specialized Services--11-34-XX*
This account includes the compensation payable to all officers,
technical and clerical employees, and other operational employees who
are associated with operating services which are specialized in nature
and in cost characteristics. The specialized services designated by the
Board appear within the explanation of activities/subactivities. This
account shall be subdivided by the following functions:
Administration--General..................................... 11-34-01
Operations:
Pick Up and Delivery, Marine Line Haul, and Rail 11-34-73
Substitute Service.....................................
Loading, Unloading, and Local Marine.................... 11-34-74
Protective Services..................................... 11-34-75
Other--Other................................................ 11-34-99
Salaries and Wages--Transportation--Administrative Support--11-35-XX
This account includes the compensation payable to all officers, are
associated with providing direct administrative support for the
Transportation Activity. For further clarification refer to the
explanation of the Administrative Support Operations Subactivity. Each
account shall be subdivided by the following functions:
Administration--General..................................... 11-35-01
Operations:
Clerical and Accounting Employees....................... 11-35-76
Communication Systems Operations........................ 11-35-77
[[Page 77]]
Loss and Damage Claims Processing....................... 11-35-78
Other--Other................................................ 11-35-99
Salaries and Wages--General and Administrative--11-61-XX
This account includes the compensation payable to all employees who
are associated with overall administration or other general support for
carrier operations. Overall administration includes executive, legal,
financial, treasury, accounting, budgeting, taxation, corporate
planning, costing, marketing, advertising, traffic, corporate secretary,
public relations, real estate, insurance administration, personnel
administration, pension plan administration, general purchasing, labor
relations, internal auditing, industrial engineering, and regulatory
reporting. For further clarification refer to the explanation of the
General and Administrative Activity. This account shall be subdivided by
the following functions:
Administration--General..................................... 11-61-01
General:
Accounting, Auditing, Finance........................... 11-61-86
Marketing............................................... 11-61-88
Sales................................................... 11-61-89
Industrial Development.................................. *11-61-90
Personnel and Labor Relations........................... 11-61-91
Legal and Secretarial................................... 11-61-92
Public Relations and Advertising........................ 11-61-93
Research and Development................................ 11-61-94
Other--Other................................................ 11-61-99
Fringe Benefits Not Included in Compensation--Control--12-00-00
This account series includes amounts payable to others, or other
costs charged to expense, for employee benefits which are not considered
part of direct compensation. These benefits include the carrier portions
of Railroad Retirement contributions, pension expense, unemployment
taxes, dental plans, health plans, hospitalization insurance, life
insurance, subsidies for employee lunchrooms, company entertainment
facilities for personal use, and other benefits to employees that are
not includible in direct compensation. They exclude travel expense on
company business, casualties, workmen's compensation, as well as dues,
memberships, and similar items when the direct beneficiary is clearly
the company rather than the employee.
Fringe Benefits Not Included in Compensation--Way and 12-11-00
Structures--Running........................................
Fringe Benefits Not Included in Compensation--Way and 12-12-00
Structures--Switching......................................
Fringe Benefits Not Included in Compensation--Way and 12-13-00
Structures--Other..........................................
Fringe Benefits Not Included in Compensation--Equipment 12-21-00
Locomotives................................................
Fringe Benefits Not Included in Compensation--Equipment-- *12-22-00
Freight Cars...............................................
Fringe Benefits Not Included in Compensation--Equipment-- 12-23-00
Other Equipment............................................
Fringe Benefits Not Included in Compensation-- 12-31-00
Transportation--Train......................................
Fringe Benefits Not Included in Compensation-- 12-32-00
Transportation--Yard.......................................
Fringe Benefits Not Included in Compensation-- 12-33-00
Transportation--Train and Yard Common......................
Fringe Benefits Not Included in Compensation-- 12-34-00
Transportation--Specialized Services.......................
Fringe Benefits Not Included in Compensation-- 12-35-00
Transportation--Administrative Support.....................
Fringe Benefits Not Included in Compensation--General and 12-61-00
Administrative.............................................
Materiel Control--20-00-00
This account may be used as a control account for the Materiel
series: Materials, Tools, Supplies, Fuels, Lubricants.
Materials, Tools, Supplies, Fuels, Lubricants--Control--21-00-00
This account group includes the cost of items installed or
commodities consumed which are charged to expense in connection with
carrier operations. This account group includes charges to expense for
all materials, small tools, supplies, fuels, lubricants, purchased
standard stationery and forms, freight-in on materials and supplies, and
similar items. This account group excludes purchased services such as
utilities, communications, postage and other items of similar nature.
Its components shall be distributed to the following accounts:
[[Page 78]]
Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Running--21-11-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
the performance or support of the repair and maintenance of the
carrier's roadway and track on the line of the road and outside of
classification yards. Each account includes charges to expense for all
materials, small tools, supplies, fuels, lubricants, purchased standard
stationery and forms, freight-in on materials, and supplies, and similar
items. Its components shall be distributed to the following functions in
accordance with Instruction 1-18:
Repair and Maintenance:
Roadway................................................. 21-11-10
Tunnels and Subways..................................... 21-11-11
Bridges and Culverts.................................... 21-11-12
Ties.................................................... 21-11-13
Rails and Other Track Material.......................... 21-11-14
Ballast................................................. 21-11-16
Signals and Interlockers................................ 21-11-19
Dismantling Retired Property............................ 21-11-39
Road Property and Equipment Damaged..................... 21-11-48
Other--Other............................................ 21-11-99
Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Switching--21-12-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
the performance or support of the repair and maintenance of the
carrier's roadway and track within classification yards and stations.
This account includes charges to expense for all materials, small tools,
supplies, fuels, lubricants, purchased standard stationery and forms,
freight-in on materials and supplies, and similar items. Its components
shall be distributed to the following functions in accordance with
Instruction 1-18:
Repair and Maintenance:
Roadway................................................. 21-12-10
Tunnels and Subways..................................... 21-12-11
Bridges and Culverts.................................... 21-12-12
Ties.................................................... 21-12-13
Rails and Other Track Material.......................... 21-12-14
Ballast................................................. 21-12-16
Signals and Interlockers................................ 21-12-19
Highway Grade Crossings................................. 21-12-22
Dismantling Retired Property............................ 21-12-29
Road Property and Equipment Damaged..................... 21-12-48
Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Other--21-13-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
the performance or support of the repair and maintenance of the
carrier's structures not provided for in running or switching. Each
account includes charges to expense for all materials, small tools,
supplies, fuels, lubricants, purchased standard stationery and forms,
freight-in on materials and supplies, and similar items. Its components
shall be distributed to the following functions in accordance with
Instruction 1-18:
Administration:
Track................................................... 21-13-02
Bridges and Buildings................................... 21-13-03
Signals................................................. 21-13-04
Communications.......................................... 21-13-05
Other................................................... 21-13-06
Repair and Maintenance:
Communication Systems................................... 21-13-20
Power Systems........................................... 21-13-21
Station and Office Buildings............................ 21-13-23
Shop Buildings--Locomotives............................. 21-13-24
Shop Buildings--Freight Cars............................ *21-13-25
Shop Buildings--Other Equipment......................... 21-13-26
Locomotive Servicing Facilities......................... 21-13-27
Coal Terminals.......................................... *21-13-29
Ore Terminals........................................... *21-13-30
TOFC/COFC Terminals..................................... *21-13-31
Other Marine Terminals.................................. *21-13-32
Motor Vehicle Loading and Distribution Facilities....... *21-13-33
Facilities for Other Specialized Services Operations.... *21-13-35
Roadway Machines........................................ 21-13-36
Snow Removal............................................ 21-13-38
Dismantling Retired Property............................ 21-13-39
Road Property and Equipment Damaged..................... 21-13-48
Other--Other................................................ 21-13-99
Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Locomotives--
21-21-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
the performance or support of the repair and maintenance of locomotives,
whether owned by the carrier or by others. This account includes charges
to expense for all materials, small tools, supplies, fuels, lubricants,
purchased standard stationery and forms, freight-in on materials and
supplies, and similar items. Its components shall be distributed to the
following functions in accordance with Instruction 1-18:
[[Page 79]]
Administration--General..................................... 21-21-01
Repair and Maintenance:
Locomotives............................................. 21-21-41
Road Property and Equipment Damaged..................... 21-21-48
Other--Other................................................ 21-21-99
Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Freight Cars--
21-22-XX*
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
the performance or support of the repair and maintenance of freight-
cars, whether owned by the carrier or by others. This account includes
charges to expense for all materials, small tools, supplies, fuels,
lubricants, purchased standard stationery and forms, freight-in on
materials and supplies, and similar items. Its components shall be
distributed to the following functions in accordance with Instruction 1-
18:
Administration--General..................................... 21-22-01
Repair and Maintenance:
Dismantling Retired Property............................ 21-22-39
Freight Cars............................................ 21-22-42
Road Property and Equipment Damaged..................... 21-22-48
Other--Other................................................ 21-22-99
Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Other
Equipment--21-23-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
the performance or support of the repair and maintenance of equipment by
others. This account includes charges to expense for all materials,
small tools, supplies, fuels, lubricants, purchased standard stationery
and forms, freight-in on materials and supplies, and similar items. Its
components shall be distributed to the following functions in accordance
with Instruction 1-18:
Administration--General..................................... 21-23-01
Repair and Maintenance:
Dismantling Retired Property............................ 21-23-39
Trucks, Trailers, Containers in Revenue Service......... *21-23-43
Floating Equipment--Revenue Service..................... *21-23-44
Passenger and Other Revenue Equipment................... 21-23-45
Computer Systems and Word Processing Equipment.......... 21-23-46
Work and Other Non-Revenue Equipment.................... 21-23-47
Road Property and Equipment Damaged..................... 21-23-48
Shop Machinery--Locomotives............................. 21-23-49
Shop Machinery--Freight Cars............................ *21-23-50
Shop Machinery--Other Equipment......................... 21-23-51
Other--Other................................................ 21-23-99
Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Train--
21-31-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
association with the dispatching and operation of freight trains over
the charges to expense for all materials, small tools, supplies, fuels,
lubricants, purchased standard stationery and forms, freight-in on
materials and supplies, and similar items. Its components shall be
distributed to the following functions in accordance with Instruction 1-
18:
Administration--General..................................... 21-31-01
Operations:
Engine Crews............................................ 21-31-56
Train Crews............................................. 21-31-57
Dispatching Trains...................................... 21-31-58
Operating Switches, Signals, Interlockers, Retarders, 21-31-59
Humps..................................................
Operating Drawbridges................................... 21-31-60
Highway Crossing Protection............................. 21-31-61
Train Inspection and Lubrication........................ 21-31-62
Clearing Wrecks......................................... 21-31-63
Locomotive Fuels........................................ 21-31-67
Electric Power Purchased/Produced for Motive Power...... 21-31-68
Servicing Locomotives................................... 21-31-69
Other--Other................................................ 21-31-99
Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Yard--21-
32-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
and in terminal switching and transfer service. This account includes
charges to expense for all materials, small tools, supplies, fuels,
lubricants, purchased standard stationery and forms, freight-in on
materials and supplies, and similar items. Its components shall be
distributed to the following functions in accordance with Instruction 1-
18:
Administration--General..................................... 21-32-01
Operations:
Operating Switches, Signals, Interlockers, Retarders, 21-32-59
Humps..................................................
Clearing Wrecks......................................... 21-32-63
Switch Crews............................................ 21-32-64
Controlling Operations.................................. 21-32-65
[[Page 80]]
Yard and Terminal Clerical.............................. 21-32-66
Locomotive Fuel......................................... 21-32-67
Electric Power Purchased/Produced for Motive Power...... 21-32-68
Servicing Locomotives................................... 21-32-69
Other--Other................................................ 21-32-99
Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Train and
Yard Common--21-33-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed on
behalf of both train and yard operations. This account includes charges
to expense for all materials, small tools, supplies, fuels, lubricants,
supplies, and similar items. Its components shall be distributed to the
following functions in accordance with Instruction 1-18:
Operations:
Cleaning Car Interiors................. 21-33-70
Adjusting, Transferring Loads.......... *21-33-71
Car Loading Devices and Grain Doors.... *21-33-72
Materials, Tools, Supplies, Fuels, Lubricants--Transportation--
Specialized Services--21-34-XX*
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
operating services which are specialized in nature and in cost
characteristics. The specialized services designated by the Board appear
within the explanation of specialized services. This account shall be
subdivided by the following functions:
Administration--General..................................... 21-34-01
Operations:
Pick Up and Delivery, Marine Line Haul, and Rail 21-34-73
Substitute Service.....................................
Loading, Unloading, and Local Marine.................... 21-34-74
Protective Services..................................... 21-34-75
Other--Other................................................ 21-34-99
Materials, Tools, Supplies, Fuels, Lubricants--Transportation--
Administrative Support--21-35-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
association with providing direct administrative support for the
Transportation Activity. For further clarification refer to the
explanation of the Administrative Support Operations Subactivity. This
account shall be subdivided by the following functions:
Administration--General..................................... 21-35-01
Operations:
Clerks, Accounting Employees............................ 21-35-76
Communication Systems Operations........................ 21-35-77
Loss and Damage Claims Processing....................... 21-35-78
Other--Other................................................ 21-35-99
Materials, Tools, Supplies, Fuels, Lubricants--General and
Administrative--21-61-XX
This account includes the cost of items installed or commodities
consumed which are charged to expense, where such items are consumed in
providing overall administration or other general support for carrier
operations. For further clarification refer to the definition of the
General and Administrative Activity. This account shall be subdivided by
the following functions:
Administration--General..................................... 21-61-01
General:
Accounting, Auditing, Finance........................... 21-61-86
Management Services and Data and Word Processing........ 21-61-87
Marketing............................................... 21-61-88
Sales................................................... 21-61-89
Industrial Development.................................. *21-61-90
Legal and Secretarial................................... 21-61-92
Public Relations and Advertising........................ 21-61-93
Research and Development................................ 21-61-94
Other--Other............................................ 21-61-99
Purchased Services
Control--30-00-00
This account may be used as a control account for all accounts in
the Purchased services series:
Lease Rentals--Dr.
Lease Rentals--Cr.
Joint Facility Rent--Dr.
Joint Facility Rent--Cr.
Other Rents--Dr.
Other Rents--Cr.
Joint Facility--Dr.
Joint Facility--Cr.
Repairs Billed by Others--Dr.
Repairs Billed to Others--Cr.
Other Purchased Services
Lease Rentals--Debit--Control--31-00-00
This account series includes the rentals of road property and
equipment with terms of 30 days or more. This account excludes joint
facility and joint trackage rents, insurance and maintenance elements of
lease payments, and all elements of capital leases as defined in FASB
Statement No. 13. Capitalized
[[Page 81]]
leases shall be included in the applicable property account for the
particular asset leased [See Instruction 2-11b]. The components of this
natural expense will be distributed to the following accounts in
accordance with Instruction 1-18:
Lease Rentals--Dr.--Way and Structures--Running............. 31-11-00
Lease Rentals--Dr.--Way and Structures--Switching........... 31-12-00
Lease Rentals--Dr.--Way and Structures--Other............... 31-13-00
Lease Rentals--Dr.--Equipment--Locomotives.................. 31-21-00
Lease Rentals--Dr.--Equipment--Freight Cars................. *31-22-00
Lease Rentals--Dr.--Equipment--Other Equipment.............. 31-23-00
Lease Rentals--Credit--Control--32-00-00
This account group includes the rentals of owned property and
equipment or subleases of leased road property and equipment with terms
of from 30 days to one year. Longer term leases are indicative of a
noncarrier operation and all revenues and expenses related to such
property and equipment should be classified accordingly and excluded
from railroad operations. This account excludes joint facilities and
joint trackage, capital leases, and portions of lease receipts covering
maintenance and insurance. The components of this natural expense
account will be distributed to the following accounts in accordance with
Instruction 1-18:
Lease Rentals--Cr.--Way and Structures--Running............. 32-11-00
Lease Rentals--Cr.--Way and Structures--Switching........... 32-12-00
Lease Rentals--Cr.--Way and Structures--Other............... 32-13-00
Lease Rentals--Cr.--Equipment--Locomotives.................. 32-21-00
Lease Rentals--Cr.--Equipment--Freight Cars................. *32-22-00
Joint Facility Rents--Debits--Control--33-00-00
This account group includes amounts payable accrued as rent for
equipment, tracks, yards, terminals, and other facilities owned or
controlled by other carriers, companies, or individuals, and in the
joint use of which the accounting company participates. Amounts paid or
payable by the accounting company in reimbursement for taxes on property
jointly used shall be charged to this account.
The cost of maintenance, operation, or administration of joint
facilities, chargeable to the accounting company, shall be charged to
the various joint facility accounts (37-XX-00). When the compensation
for the use of joint facilities is a fixed amount or is based upon a
charge per passenger, ton, car, or other unit, it shall be fairly
apportioned between this account and Joint Facility--Dr. (37-XX-00).
This apportionment shall be made by the operating company and shall be
followed by the accounting company.
The components of this natural expense consist of the following
accounts:
Joint Facility Rents--Dr.--Way and Structures--Running...... 33-11-00
Joint Facility Rents--Dr.--Way and Structures--Switching.... 33-12-00
Joint Facility Rents--Dr.--Way and Structures--Other........ 33-13-00
Joint Facility Rents--Dr. Equipment--Locomotives............ *33-21-00
Joint Facility Rents--Dr. Equipment--Freight Cars........... *33-22-00
Joint Facility Rents--Dr. Equipment--Other Equipment........ 33-23-00
Joint Facility Rents--Credit--Control--34-00-00
This account series includes amounts receivable accrued for rent of
equipment, tracks, yards, terminals and other facilities owned or
controlled by the accounting company and used jointly with other
companies or individuals. Amounts receivable from other companies in
reimbursement for taxes on property jointly used shall be credited to
this account.
The portion of the cost of maintenance, operation, or administration
of joint facilities recoverable from others shall be credited to the
various joint facility accounts (38-XX-00). When the compensation for
the use of joint facilities is a fixed amount or is based upon a charge
per passenger, ton, car, or other unit, it shall be fairly apportioned
by the creditor between this account and Joint Facility--Cr. (38-XX-00).
The components of this account series shall be distributed to the
following accounts:
Joint Facility Rents--Cr.--Way and Structures--Running...... 34-11-00
[[Page 82]]
Joint Facility Rents--Cr.--Way and Structures--Switching.... 34-12-00
Joint Facility Rents--Cr.--Way and Structures--Other........ 34-13-00
Joint Facility Rents--Cr.--Equipment--Locomotives........... *34-21-00
Joint Facility Rents--Cr.--Equipment--Freight Cars.......... *34-22-00
Joint Facility Rents--Cr.--Equipment--Other Equipment....... 34-23-00
Other Rents--Debit--Control--35-00-00
This account group includes the rents with terms of less than 30
days which are not renewed. This account includes all time and mileage
payments for interchange locomotive, freight car, and other revenue
equipment hire. The components of this account will be distributed to
the following accounts in accordance with Instruction 1-18:
Other Rents--Dr.--Way and Structures--Running............... 35-11-00
Other Rents--Dr.--Way and Structures--Switching............. 35-12-00
Other Rents--Dr.--Way and Structures--Other................. 35-13-00
Other Rents--Dr.--Equipment--Locomotives.................... 35-21-00
Other Rents--Dr.--Equipment--Freight Cars................... *35-22-00
Other Rents--Dr.--Equipment--Other Equipment................ 35-23-00
Other Rents--Credit--Control--36-00-00
This account includes rents with terms of less than 30 days which
are not renewed. This account includes all time and mileage receipts for
interchanged locomotive, freight car, and other revenue equipment hire.
The components of this account will be distributed to the following
accounts in accordance with Instruction 1-18:
Other Rents--Cr.--Way and Structures--Running............... 36-11-00
Other Rents--Cr.--Way and Structures--Switching............. 36-12-00
Other Rents--Cr.--Way and Structures--Other................. 36-13-00
Other Rents--Cr.--Equipment--Locomotives.................... 36-21-00
Other Rents--Cr.--Equipment--Freight Cars................... *36-22-00
Other Rents--Cr.--Equipment--Other Equipment................ 36-23-00
Joint Facility--Debit--Control--37-00-00
This account includes joint trackage and joint facility costs,
exclusive of rents, payable by the railroad to others. The components of
this account will be distributed to the following accounts in accordance
with Instruction 1-18:
Joint Facility--Dr.--Way and Structures--Running............ 37-11-00
Joint Facility--Dr.--Way and Structures--Switching.......... 37-12-00
Joint Facility--Dr.--Way and Structures--Other.............. 37-13-00
Joint Facility--Dr.--Equipment--Locomotives................. 37-21-00
Joint Facility--Dr.--Equipment--Freight Cars................ *37-22-00
Joint Facility--Dr.--Equipment--Other Equipment............. 37-23-00
Joint Facility--Dr.--Transportation--Train.................. 37-31-00
Joint Facility--Dr.--Transportation--Yard................... 37-32-00
Joint Facility--Dr.--Transportation--Specialized Services... *37-34-00
Joint Facility--Dr.--Transportation--Administrative Support. 37-35-00
Joint Facility--Dr.--General and Administrative............. 37-61-00
Joint Facility--Credit--Control--38-00-00
This account group includes joint trackage and joint facility costs,
exclusive of rents, payable by others to the railroad. The components of
this account will be distributed to the following accounts in accordance
with Instruction 1-18:
Joint Facility--Cr.--Way and Structures--Running............ 38-11-00
Joint Facility--Cr.--Way and Structures--Switching.......... 38-12-00
Joint Facility--Cr.--Way and Structures--Other.............. 38-13-00
Joint Facility--Cr.--Equipment--Locomotives................. 38-21-00
Joint Facility--Cr.--Equipment--Freight Cars................ *38-22-00
Joint Facility--Cr.--Equipment--Other Equipment............. 38-23-00
Joint Facility--Cr.--Transportation--Train.................. 38-31-00
Joint Facility--Cr.--Transportation--Yard................... 38-32-00
Joint Facility--Cr.--Transportation--Specialized Services... *38-34-00
Joint Facility--Cr.--Transportation--Administrative Support. 38-35-00
Joint Facility--Cr.--General and Administrative............. 38-61-00
[[Page 83]]
Repairs Billed by Others--Debit--Control--39-00-00
This account group includes amounts payable by the railroad to
others for repair and maintenance of the reporting railroad's property
and equipment. The components of this account shall be distributed to
the following accounts in accordance with Instruction 1-18:
Repairs Billed by Others--Dr.--Way and Structures--Running--39-11-XX
This account includes amounts payable by the railroad to others for
repair and maintenance of the reporting railroad's property associated
with the carrier's roadway and track on the line of road and outside of
classification yards. This account shall be subdivided by the following
functions:
Repair and Maintenance:
Roadway................................................. 39-11-10
Tunnels and Subways..................................... 39-11-11
Bridges and Culverts.................................... 39-11-12
Ties.................................................... 39-11-13
Rails and Other Track Material.......................... 39-11-14
Ballast................................................. 39-11-16
Signals and Interlockers................................ 39-11-19
Highway Grade Crossings................................. 39-11-22
Road Property and Equipment Damaged..................... 39-11-48
Repairs Billed by Others--Dr.--Way and Structures--Switching--39-12-XX
This account includes amounts payable by the railroad to others for
repair and maintenance of the reporting railroad's property associated
with the carrier's roadway and track within classification yards and
stations. This account shall be subdivided by the following functions:
Repair and Maintenance:
Roadway................................................. 39-12-10
Tunnels and Subways..................................... 39-12-11
Bridges and Culverts.................................... 39-12-12
Ties.................................................... 39-12-13
Rails and Other Track Material.......................... 39-12-14
Ballast................................................. 39-12-16
Signals and Interlockers................................ 39-12-19
Highway Grade Crossings................................. 39-12-22
Road Property and Equipment Damaged..................... 39-12-48
Repairs Billed by Others--Dr.--Way and Structures--Other--39-13-XX
This account includes amounts payable by the railroad to others for
repair and maintenance of the carrier's structures other than roadway
and track. This account shall be subdivided by the following functions:
Repair and Maintenance:
Communication Systems................................... 39-13-20
Power Systems........................................... 39-13-21
Station and Office Buildings............................ 39-13-23
Shop Buildings--Locomotives............................. 39-13-24
Shop Buildings--Freight Cars............................ *39-13-25
Shop Buildings--Other Equipment......................... 39-13-26
Locomotive Servicing Facilities......................... 39-13-27
Miscellaneous Buildings and Structures.................. 39-13-28
Coal Terminals.......................................... *39-13-29
Ore Terminals........................................... *39-13-30
TOFC/COFC Terminals..................................... *39-13-31
Other Marine Terminals.................................. *39-13-32
Motor Vehicle Loading and Distribution Facilities....... *39-13-33
Facilities for Other Specialized Services Operations.... *39-13-35
Roadway Machines........................................ 39-13-36
Snow Removal............................................ 39-13-38
Road Property and Equipment Damaged..................... 39-13-48
Repairs Billed by Others--Dr.--Equipment--Locomotives--39-21-XX
This account includes amounts payable by the railroad to others for
repair and maintenance under the Locomotive subactivity. This account
shall be subdivided by the following functions:
Repair and Maintenance:
Locomotives............................................. 39-21-41
Road Property and Equipment Damaged..................... 39-21-48
Repairs Billed by Others--Dr.--Equipment--Freight Cars--39-22-XX*
This account includes amounts payable by the railroad to others for
repair and maintenance under the Freight Car subactivity. This account
shall be subdivided by the following functions:
Repair and Maintenance:
Freight Cars............................................ 39-22-42
Road Property and Equipment Damaged..................... 39-22-48
Repairs Billed by Others--Dr.--Equipment Other Equipment--39-23-XX
This account includes amounts payable by the railroad to others for
the repair and maintenance of equipment not pertaining to the Locomotive
or Freight Car subactivity. This account shall be subdivided by the
following functions:
Repair and Maintenance:
Trucks, Trailers, and Containers in Revenue Service..... *39-23-43
Floating Equipment--Revenue Service..................... *39-23-44
[[Page 84]]
Passenger and Other Revenue Equipment................... 39-23-45
Computer Systems and Word Processing Equipment.......... 39-23-46
Work and Other Non-Revenue Equipment.................... 39-23-47
Road Property and Equipment Damaged..................... 39-23-48
Shop Machinery--Locomotives............................. 39-23-49
Shop Machinery--Freight Cars............................ *39-23-50
Shop Machinery--Other Equipment......................... 39-23-51
Repairs Billed to Others--Cr.--Control 40-00-00
This account series includes amounts payable by others to the
railroad for repair and maintenance of others' road property and
equipment. The components of this account shall be distributed to the
following accounts in accordance with Instruction 1-18:
Repairs Billed to Others--Cr.--Way and Structures--Running--40-11-XX
This account includes amounts payable by others to the railroad for
repair and maintenance of other railroads' roadway and track on the line
of road and outside of classification yards. This account shall be
subdivided by the following functions:
Repair and Maintenance:
Roadway................................................. 40-11-10
Tunnels and Subways..................................... 40-11-11
Bridges and Culverts.................................... 40-11-12
Ties.................................................... 40-11-13
Rails and Other Track Material.......................... 40-11-14
Ballast................................................. 40-11-16
Signals and Interlockers................................ 40-11-19
Highway Grade Crossings................................. 40-11-22
Road Property and Equipment Damaged..................... 40-11-48
Repairs Billed to Others--Cr.--Way and Structures Switching--40-12-XX
This account includes amounts payable by others to the railroad for
repair and maintenance of other railroads' roadway and track within
classification yards and stations. This account shall be subdivided by
the following functions:
Repair and Maintenance:
Roadway................................................. 40-12-10
Tunnels and Subways..................................... 40-12-11
Bridges and Culverts.................................... 40-12-12
Ties.................................................... 40-12-13
Rails and Other Track Material.......................... 40-12-14
Ballast................................................. 40-12-16
Signals and Interlockers................................ 40-12-19
Highway Grade Crossings................................. 40-12-22
Road Property and Equipment Damaged..................... 40-12-48
Repairs Billed to Others--Cr.--Way and Structures--Other--40-13-XX
This account includes amounts payable by others to the railroad for
repair and maintenance of other railroads' structures other than roadway
and track. This account shall be subdivided by the following functions:
Repair and Maintenance:
Communication Systems................................... 40-13-20
Power Systems........................................... 40-13-21
Station and Office Buildings............................ 40-13-23
Shop Buildings Locomotives.............................. 40-13-24
Shop Buildings--Freight Cars............................ *40-13-25
Shop Buildings--Other Equipment......................... 40-13-26
Locomotive Servicing Facilities......................... 40-13-27
Miscellaneous Buildings and Structures.................. 40-13-28
Coal Terminals.......................................... *40-13-29
Ore Terminals........................................... *40-13-30
TOFC/COFC Terminals..................................... *40-13-31
Other Marine Terminals.................................. *40-13-32
Motor Vehicle Loading and Distribution Facilities....... *40-13-33
Facilities for Other Specialized Services Operations.... *40-13-35
Roadway Machines........................................ 40-13-36
Snow Removal............................................ 40-13-38
Road Property and Equipment Damaged..................... 40-13-48
Repairs Billed to Others--Cr.--Equipment Locomotives--40-21-XX
This account includes amounts payable by others to the railroad for
repair and maintenance of other railroads' locomotives. This account
shall be subdivided by the following functions:
Repair and Maintenance:
Locomotives............................................. 40-21-41
Road Property and Equipment Damaged..................... 40-21-48
Repairs Billed to Others--Cr.--Equipment--Freight Cars--40-22-XX*
This account includes amounts payable by others to the railroad for
repair and maintenance of other railroads' freight cars. This account
shall be subdivided by the following functions:
Repair and Maintenance:
Freight Cars............................................ 40-22-42
Road Property and Equipment Damaged..................... 40-22-48
Repairs Billed to Others--Cr.--Equipment--Other Equipment--40-23-XX
This account includes amounts payable by others to the railroad for
repair and maintenance of other railroads' other equipment. Each account
shall be subdivided by the following functions:
[[Page 85]]
Repair and Maintenance:
Trucks, Trailers, and Containers in Revenue Service..... *40-23-43
Floating Equipment--Revenue Service..................... *40-23-44
Passenger and Other Revenue Equipment................... 40-23-45
Computer Systems and Word Processing Equipment.......... 40-23-46
Road Property and Equipment Damaged..................... 40-23-48
Shop Machinery--Locomotives............................. 40-23-49
Shop Machinery--Freight Cars............................ *40-23-50
Shop Machinery--Other Equipment......................... 40-23-51
Other Purchased Services--Control--41-00-00
This account group includes amounts charged or credited to operating
expenses for purchased advertising; purchased printing; outside
professional services such as legal, accounting, audit, engineering, and
consulting; payments for detour of trains; utilities, telephone,
postage, subscriptions, communications, purchased electric power for
train and locomotive propulsion; and other services purchased. The
components of this account group shall be distributed to the following
accounts in accordance with Instruction 1-18:
Other Purchased Services--Way and Structures--Running--41-11-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Repair and Maintenance:
Roadway................................................. 41-11-10
Tunnels and Subways..................................... 41-11-11
Bridges and Culverts.................................... 41-11-12
Ties.................................................... 41-11-13
Rails and Other Track Material.......................... 41-11-14
Ballast................................................. 41-11-16
Signals and Interlockers................................ 41-11-19
Highway Grade Crossings................................. 41-11-22
Dismantling Retired Property............................ 41-11-39
Road Property and Equipment Damaged..................... 41-11-48
Other--Other................................................ 41-11-99
Other Purchased Services--Way and Structures--Switching--41-12-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Repair and Maintenance:
Roadway................................................. 41-12-10
Tunnels and Subways..................................... 41-12-11
Bridges and Culverts.................................... 41-12-12
Ties.................................................... 41-12-13
Rails and Other Track Material.......................... 41-12-14
Ballast................................................. 41-12-16
Signals and Interlockers................................ 41-12-19
Highway Grade Crossings................................. 41-12-22
Dismantling Retired Property............................ 41-12-39
Road Property and Equipment Damaged..................... 41-12-48
Other--Other................................................ 41-12-99
Other Purchased Services--Way and Structures--Other--41-13-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administration:
Track................................................... 41-13-02
Bridges and Buildings................................... 41-13-03
Signals................................................. 41-13-04
Communications.......................................... 41-13-05
Other................................................... 41-13-06
Repair and Maintenance:
Communication Systems................................... 41-13-20
Power Systems........................................... 41-13-21
Station and Office Buildings............................ 41-13-23
Shop Buildings--Locomotives............................. 41-13-24
Shop Buildings--Freight Cars............................ *41-13-25
Shop Buildings--Other Equipment......................... 41-13-26
Locomotive Servicing Facilities......................... 41-13-27
Miscellaneous Buildings and Structures.................. 41-13-28
Coal Terminals.......................................... *41-13-29
Ore Terminals........................................... *41-13-30
TOFC/COFC Terminals..................................... *41-13-31
Other Marine Terminals.................................. *41-13-32
Motor Vehicle Loading and Distribution Facilities....... *41-13-33
Facilities for Other Specialized Services Operations.... *41-13-35
Roadway Machines........................................ 41-13-36
Snow Removal............................................ 41-13-38
Dismantling Retired Property............................ 41-13-39
Road Property and Equipment Damaged..................... 41-13-48
Other--Other................................................ 41-13-99
Other Purchased Services--Equipment--Locomotives--41-21-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administrative--General..................................... 41-21-01
Repair and Maintenance:
Dismantling Retired Property............................ 41-21-39
[[Page 86]]
Locomotives............................................. 41-21-41
Road Property and Equipment Damaged..................... 41-21-48
Other--Other................................................ 41-21-99
Other Purchased Services--Equipment--Freight Cars--41-22-XX*
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administrative--General..................................... 41-22-01
Repair and Maintenance:
Dismantling Retired Property............................ 41-22-39
Freight Cars............................................ 41-22-42
Road Property and Equipment Damaged..................... 41-22-48
Other--Other................................................ 41-22-99
Other Purchased Services--Equipment--Other Equipment--41-23-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administrative--General..................................... 41-23-01
Repair and Maintenance:
Dismantling Retired Property............................ 41-23-39
Trucks, Trailers, Containers in Revenue Service......... 41-23-43
Floating Equipment--Revenue Service..................... *41-23-44
Passenger and Other Revenue Equipment................... 41-23-45
Computer Systems and Word Processing Equipment.......... 41-23-46
Work and Other Non-Revenue Equipment.................... 41-23-47
Road Property and Equipment Damaged..................... 41-23-48
Shop Machinery--Locomotives............................. 41-23-49
Shop Machinery--Freight Cars............................ *41-23-50
Shop Machinery--Other Equipment......................... 41-23-51
Other--Other................................................ 41-23-99
Other Purchased Services--Transportation--Train--41-31-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administration--General..................................... 41-31-01
Operations:
Engine Crews............................................ 41-31-56
Train Crews............................................. 41-31-57
Dispatching Trains...................................... 41-31-58
Operating Switches, Signals, Interlockers, Retarders, 41-31-59
Humps..................................................
Operating Drawbridges................................... 41-31-60
Highway Crossing Protection............................. 41-31-61
Train Inspection and Lubrication........................ 41-31-62
Clearing Wrecks......................................... 41-31-63
Locomotive Fuel......................................... 41-31-67
Electric Power Purchased/Produced for Motive Power...... 41-31-68
Servicing Locomotives................................... 41-31-69
Other--Other................................................ 41-31-99
Other Purchased Services--Transportation--Yard--41-32-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administration--General..................................... 41-32-01
Operations:
Operating Switches, Signals, Interlockers, Retarders, 41-32-59
Humps..................................................
Clearing Wrecks......................................... 41-32-63
Switch Crews............................................ 41-32-64
Controlling Operations.................................. 41-32-65
Yard and Terminal Clerical.............................. 41-32-66
Locomotive Fuel......................................... 41-32-67
Electric Power Purchased/Produced for Motive Power...... 41-32-68
Servicing Locomotives................................... 41-32-69
Other--Other................................................ 41-32-99
Other Purchased Services--Transportation--Train and Yard Common--41-33-
XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Operations:
Cleaning Car Interiors.................................. 41-33-70
Adjusting, Transferring Loads........................... 41-33-71
Car Loading Devices and Grain Doors..................... 41-33-72
Other Purchased Services--Transportation--Specialized Services--41-34-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administration--General..................................... 41-34-73
Operations:
Pick Up and Delivery, Marine Line Haul, and Rail 41-34-73
Substitute Service.....................................
Loading, Unloading, and Local Marine.................... 41-34-74
Protective Services..................................... 41-34-75
Other--Other................................................ 41-34-99
[[Page 87]]
Other Purchased Services--Transportation--Administrative Support--41-35-
XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administration--General..................................... 41-35-01
Operations:
Clerks, Accounting Employees............................ 41-35-76
Communication Systems Operations........................ 41-35-77
Loss and Damage Claims Processing....................... 41-35-78
Other--Other................................................ 41-35-99
Other Purchased Services--General and Administrative--41-61-XX
This account includes amounts charged or credited to operating
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:
Administration--General..................................... 41-61-01
General:
Accounting, Auditing, Finance........................... 41-61-86
Management Services and Data and Word Processing........ 41-61-87
Marketing............................................... 41-61-88
Sales................................................... 41-61-89
Industrial Development.................................. *41-61-90
Personnel and Labor Relations........................... 41-61-91
Legal and Secretarial................................... 41-61-92
Public Relations and Advertising........................ 41-61-93
Research and Development................................ 41-61-94
Other--Other................................................ 41-61-99
Claims and Insurance--Table of Contents
Control--50-00-00
This account may be used as a control account for all accounts in
the Claims and Insurance series: Loss and Damage Claims, Other
Casualties, Insurance.
Loss and Damage Claims--Control--51-00-00
This account series includes amounts payable to compensate for the
loss or damage of freight or other goods carried in revenue service.
Loss and damage claims should not be allocated. When specific
identification of loss and damage claims is possible, the related
expenses shall be directly assigned to the Train, Yard, or Specialized
service Subactivity. If a solely related determination cannot be made
the loss and damage claim shall be charged to the Train and Yard
Subactivity. This account series excludes amounts payable to employees
or other parties for injuries sustained or loss of life; for damage to
real property of others or personal property not carried in revenue
services; all payments for other damages of any kind; and related
insurance premiums. These costs are appropriately charged to the
following accounts:
Loss and Damage Claims--Transportation--Train............... 51-31-00
Loss and Damage Claims--Transportation--Yard................ 51-32-00
Loss and Damage Claims--Transportation--Train and Yard 51-33-00
Common.....................................................
Loss and Damage Claims--Transportation--Specialized Services *51-34-00
Other Casualties--Control--52-00-00
This account includes amounts payable to employees or other parties
for injuries sustained or loss of life in connection with the
construction, maintenance, operations, and administration of railroad
property and equipment; for damage to real property, property of others
or personal property not carried in revenue service; all payments for
other damages of any kind. This account excludes freight and other goods
carried in a revenue service, and insurance premiums related to the
casualties chargeable to this account.
Note: The costs of clearing wrecks and repairing casualty-caused
damage to the railroad's property and equipment are properly classified
under other natural expense accounts as appropriate and further
classified by relevant activities and functions. These costs are
appropriately charged to the following accounts:
Other Casualties--Way and Structures--Running............... 52-11-00
Other Casualties--Way and Structures--Switching............. 52-12-00
Other Casualties--Way and Structures--Other................. 52-13-00
Other Casualties--Equipment--Locomotives.................... 52-21-00
Other Casualties--Equipment--Freight Cars................... *52-22-00
Other Casualties--Equipment--Other Equipment................ 52-34-00
Other Casualties--Transportation--Train..................... 52-31-00
Other Casualties--Transportation--Yard...................... 52-32-00
[[Page 88]]
Other Casualties--Transportation--Specialized Services...... *52-34-00
Other Casualties--Transportation--Administrative Support.... 52-35-00
Other Casualties--General and Administrative................ 52-61-00
Insurance--Control--53-00-00
This account series include premiums for insurance to cover property
and equipment loss and damage, liability, business interruption, and the
like. These costs are appropriately charged to the following accounts:
Insurance--Way and Structures--Running...................... 53-11-00
Insurance--Way and Structures--Switching.................... 53-12-00
Insurance--Way and Structures--Other........................ 53-13-00
Insurance--Equipment--Locomotives........................... 53-21-00
Insurance--Equipment--Freight Cars.......................... *53-22-00
Insurance--Equipment--Other Equipment....................... 53-23-00
Insurance--Transportation--Train............................ 53-31-00
Insurance--Transportation--Yard............................. 53-32-00
Insurance--Transportation--Specialized Services............. *53-34-00
Insurance--Transportation--Administrative Support........... 53-35-00
Insurance--General and Administrative....................... 53-61-00
General--Table of Contents
Control--60-00-00
This account may be used as a control account for all accounts in
the General series: Other Expenses, Depreciation, Uncollectible
Accounts, Property Taxes, Other Taxes.
Other Expenses--Control--61-00-00
This account series includes amounts charged to operating expenses
for items not otherwise provided for in the other natural expense
accounts, including travel and other expenses of employees, road
property and equipment retirement losses, and other items of a general
nature.
Other Expenses--Way and Structures--Running--61-11-XX
Each account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, road property
retirement losses, and other items of a general nature associated with
the carrier's roadway and track on the line of road and outside of
classification yards. Each account shall be subdivided by the following
functions:
Repair Maintenance:
Roadway................................................. 61-11-10
Tunnels and Subways..................................... 61-11-11
Bridges and Culverts.................................... 61-11-12
Ties.................................................... 61-11-13
Rails and Other Track Material.......................... 61-11-14
Ballast................................................. 61-11-16
Signals and Interlockers................................ 61-11-19
Highway Grade Crossings................................. 61-11-22
Dismantling Retired Property............................ 61-11-39
Road Property and Equipment Damaged..................... 61-11-48
Other--Other................................................ 61-11-99
Other Expenses--Way and Structures--Switching--61-12-XX
Each account includes amount charged to operating expenses for items
not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, road property
retirement losses, and other items of a general nature associated with
the carrier's roadway and track within classification yards and
stations. Each account shall be subdivided by the following functions:
Repair and Maintenance:
Roadway................................................. 61-12-10
Tunnels and Subways..................................... 61-12-11
Bridges and Culverts.................................... 61-12-12
Ties.................................................... 61-12-13
Rails and Other Track Material.......................... 61-12-14
Ballast................................................. 61-12-16
Signals and Interlockers................................ 61-12-19
Highway Grade Crossings................................. 61-12-22
Dismantling Retired Property............................ 61-12-39
Road Property and Equipment Damaged..................... 61-12-48
Other--Other................................................ 61-12-99
Other Expenses--Way and Structures--Other--61-13-XX
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, road property
retirement losses, and other items of a general nature associated with
the carrier's structures other than roadway and track. This account
shall be subdivided by the following functions:
Administration:
Track................................................... 61-13-02
Bridges and Buildings................................... 61-13-03
Signals................................................. 61-13-04
Communications.......................................... 61-13-05
[[Page 89]]
Other................................................... 61-13-06
Repair and Maintenance:
Communication Systems................................... 61-13-20
Power Systems........................................... 61-13-21
Station and Office Buildings............................ 61-13-23
Shop Buildings--Locomotives............................. 61-13-24
Shop Buildings--Freight Cars............................ *61-13-25
Shop Buildings--Other Equipment......................... 61-13-26
Locomotive Servicing Facilities......................... 61-13-27
Miscellaneous Buildings and Structures.................. 61-13-28
Coal Terminals.......................................... *61-13-29
Ore Terminals........................................... *61-13-30
TOFC/COFC Terminals..................................... *61-13-31
Other Marine Terminals.................................. *61-13-32
Motor Vehicle Loading and Distribution Facilities....... *61-13-33
Facilities for Other Specialized Services Operations.... *61-13-35
Roadway Machines........................................ 61-13-36
Snow Removal............................................ 61-13-38
Dismantling Retired Property............................ 61-13-39
Road Property and Equipment Damaged..................... 61-13-48
Other--Other................................................ 61-13-99
Other Expenses--Equipment--Locomotives 61-21-XX
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees and equipment
retirement losses, associated with the repair and maintenance of
locomotives, whether owned by the carrier or by others. This account
shall be subdivided by the following functions:
Administration--General..................................... 61-21-01
Repair and Maintenance:
Dismantling Retired Property............................ 61-21-39
Locomotives............................................. 61-21-41
Road Property and Equipment Damaged..................... 61-21-48
Other--Other................................................ 61-21-99
Other Expenses--Equipment--Freight Cars--61-22-XX*
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, equipment retirement
losses, associated with the repair and maintenance of freight cars,
whether owned by the carrier or by others. This account shall be
subdivided by the following functions:
Administration--General..................................... 61-22-01
Repair and Maintenance:
Dismantling Retired Property............................ 61-22-39
Freight Cars............................................ 61-22-42
Road Property and Equipment Damaged..................... 61-22-48
Other--Other................................................ 61-22-99
Other Expenses--Equipment--Other Equipment--61-23-XX
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, equipment retirement
losses, associated with the repair and maintenance of equipment other
than locomotives and freight cars, whether owned by the carrier or by
others. This account shall be subdivided by the following functions:
Administration--General..................................... 61-23-01
Repair and Maintenance:
Dismantling Retired Property............................ 61-23-39
Trucks, Trailers, Containers in Revenue Service......... *61-23-43
Floating Equipment--Revenue Service..................... *61-23-44
Passenger and Other Revenue Equipment................... 61-23-45
Computer Systems and Word Processing Equipment.......... 61-23-46
Work and Other Non-Revenue Equipment.................... 61-23-47
Road Property and Equipment Damaged..................... 61-23-48
Shop Machinery--Locomotives............................. 61-23-49
Shop Machinery--Freight Cars............................ *61-23-50
Shop Machinery--Other Equipment......................... 61-23-51
Other--Other................................................ 61-23-99
Other Expenses--Transportation--Train--61-23-XX
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, associated with the
dispatching and operations of freight-trains over the roadway and
outside of classification yards. This account shall be subdivided by the
following functions:
Administration--General..................................... 61-31-01
Operations:
Engine Crews............................................ 61-31-56
Train Crews............................................. 61-31-57
Dispatching Trains...................................... 61-31-58
Operating Switches, Signals, Interlockers, Retarders, 61-31-59
Humps..................................................
Operating Drawbridges................................... 61-31-60
Highway Crossing Protection............................. 61-31-61
Train Inspection and Lubrication........................ 61-31-62
Clearing Wrecks......................................... 61-31-63
Locomotive Fuel......................................... 61-31-67
Electric Power Purchased/Produced for Motive Power...... 61-31-68
Servicing Locomotives................................... 61-31-69
Other--Other................................................ 61-31-99
[[Page 90]]
Other Expenses--Transportation--Yard--61-32-XX
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, and other items of a
general nature associated with the movement of freight cars within
classification yards and in terminal switching and transfer service.
This account shall be subdivided by the following functions:
Administration--General..................................... 61-32-01
Operations:
Operating Switches, Signals, Interlockers, Retarders, 61-32-59
Humps..................................................
Clearing Wrecks......................................... 61-32-63
Switch Crews............................................ 61-32-64
Controlling Operations.................................. 61-32-65
Yard and Terminal Clerical.............................. 61-32-66
Locomotive Fuel......................................... 61-32-67
Electric Power Purchased/Produced for Motive Power...... 61-32-68
Servicing Locomotives................................... 61-32-69
Other--Other................................................ 61-32-99
Other Expenses--Transportation--Specialized Services--61-34-XX*
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, and other items of a
general nature incurred in operating services which are specialized in
nature and in cost characteristics. The specialized services designated
by the Board appear within the explanation of activities/ subactivities.
This account shall be subdivided by the following functions:
Administration--General..................................... 61-34-01
Operations:
Pick Up and Delivery, Marine Line Haul, and Rail 61-34-73
Substitute Service.....................................
Loading, Unloading, and Local Marine.................... 61-34-74
Protective Services..................................... 61-34-75
Other--Other................................................ 61-34-99
Other Expenses--Transportation--Administrative Support--61-35-XX
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, and other items of a
general nature incurred in association with providing direct
administrative support for the Transportation Activity. This account
shall be subdivided by the following functions:
Administration--General..................................... 61-35-01
Operations:
Clerks, Accounting Employees............................ 61-35-76
Communication Systems Operations........................ 61-35-77
Loss and Damage Claims Processing....................... 61-35-78
Other--Other................................................ 61-35-99
Other Expenses--General and Administrative--61-61-XX
This account includes amounts charged to operating expenses for
items not otherwise provided for in the other natural expense accounts,
including travel and other expenses of employees, and other items of a
general nature incurred in providing overall administration or other
support for carrier operations. This account shall be subdivided by the
following functions:
Administration--General..................................... 61-61-01
General:
Accounting, Auditing, Finance........................... 61-61-86
Management Services and Data Processing................. 61-61-87
Marketing............................................... 61-61-88
Sales................................................... 61-61-89
Industrial Development.................................. *61-61-90
Personnel Labor Relations............................... 61-61-91
Legal and Secretarial................................... 61-61-92
Public Relations and Advertising........................ 61-61-93
Research and Development................................ 61-61-94
Other--Other................................................ 61-61-99
Depreciation--Control--62-00-00
This account group includes the amounts charged to operating
expenses for depreciation of owned road property and equipment, and the
depreciation element of road property held under capital lease in
accordance with FASB Statement No. 13. These costs are appropriately
charged to the following accounts:
Depreciation--Way and Structures--Running................... 62-11-00
Depreciation--Way and Structures--Switching................. 62-12-00
Depreciation--Way and Structures--Other..................... 62-13-00
Depreciation--Equipment--Locomotives........................ 62-21-00
Depreciation--Equipment--Freight Cars....................... *62-22-00
Depreciation--Equipment--Other Equipment.................... 62-23-00
Uncollectible Accounts--Control--63-00-00
This account includes charges to operating expenses for the
writedown of accounts and notes due to the railroad, whether classified
as current or long-
[[Page 91]]
term. This account includes any credits to allowance accounts for
collectibility and total writeoff of receivables. This account does not
include writedowns of property, equipment, or investments (except
accounts, notes, or other receivables held as investments). Proper
adjustments of incorrect receivables are not to be charged to this
account. Collections of amounts previously written off or down are to be
credited to this account. The total of this account shall be charged to
the following account:
Uncollectible Accounts--General and Administrative.......... 63-61-00
Property Taxes--Control--64-00-00
This account includes only taxes based on the value of real estate
and personal property used in railroad operations. The total of this
account shall be charged to the following account:
Property Taxes--General and Administrative.................. 64-61-00
Other Taxes--Control--65-00-00
This account includes taxes on gross receipts, franchise fees,
excise taxes, and similar items. This account excludes property taxes
and taxes chargeable as employee benefits. The total of this account
shall be charged to the following account:
Other Taxes--General and Administrative..................... 65-61-00
OPERATING EXPENSE ACCOUNTS--Table of Contents
Section 2--Activity/Subactivity Explanations
Way and Structures Activity--(XX-10-XX)
(A) Way and Structures activity refers to repairing, maintaining,
leasing, renting, depreciating, and retiring right-of-way and trackage,
structures, buildings, and facilities. It includes all natural expense
object subclassifications such as salaries and wages, fringe benefits,
material and supplies, lease rentals, purchased services, casualties,
depreciation and retirements, where such objects are in the performance
or support of the above functions. Specifically included are all natural
expense objects in the performance of the above described functions on
property of the type included in property accounts 2 through 45,
excluding 44, whether such property is owned or leased. It includes the
costs of operating work trains in support of this activity.
This activity excludes all expenses related to transportation and
other equipment described in property accounts 44, 46 and 52 through 58,
all of which should be charged to the Equipment activity. It also
excludes expenses in performance or support of Transportation, General
and Administrative activities, property used for noncarrier operations,
non-operating property, and interest or other fixed charges.
Running Subactivity--(XX-11-XX)
(1) Running subactivity of the Way and Structures activity refers to
the functions of repairing, maintaining, leasing, renting, depreciating,
and retiring right-of-way, trackage, signals and interlockers, and
highway grade crossings for running tracks, passing tracks, crossovers,
etc., including turn-outs from those tracks, passing clearance points.
It includes all natural expense object subclassifications under the Way
and Structures activity that are applicable to right-of-way and trackage
as defined above. This subactivity specifically excludes expenses
incurred in operating signals and interlockers and highway grade
crossings, which are properly charged to the Transportation activity.
Switching Subactivity--(XX-12-XX)
(2) Switching subactivity of the Way and Structures activity refers
to the function of repairing, maintaining, leasing, renting,
depreciating, and retiring right-of-way, trackage, signals and
interlockers, and highway grade crossings for yards where separate
switching services are maintained, including classification, house,
team, industry, and other tracks switched by yard locomotives, and for
station, team, industry, and other switching tracks for which no
separate switching service is maintained. It includes all natural
expense object subclassifications under the Way and Structures activity
that are applicable to right-of-way and trackage as defined above.
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This subactivity specifically excludes expenses incurred in operating
signals and interlockers, and highway grade crossings, which are
properly charged to the Transportation activity.
Other Subactivity--(XX-13-XX)
(3) Other subactivity of the Way and Structures activity refers to
the function of repairing, maintaining, leasing, renting, depreciating,
and retiring other roadway property structures, buildings, and
facilities not provided for in the Running and Switching subactivities.
It includes all natural expense object subclassifications under the Way
and Structures activity that are applicable to the structures,
buildings, and facilities as defined above. The specifically excludes
expenses incurred in operating such structures, buildings, and
facilities, which are properly charged to the Equipment, Transportation,
and General and Administrative activities.
Equipment Activity--(XX-20-XX)
(B) Equipment activity refers to repairing, maintaining, leasing,
renting, depreciating, and retiring transportation and other operating
equipment. It includes all natural expense object subclassifications
such as salaries and wages, fringe benefits, material and supplies,
lease rentals, purchased services, casualties, depreciation, and
retirements. Specifically included are all natural expense objects in
the performance of the above functions on property of the type included
in property accounts 44, 46 and 52 through 58, whether such property is
owned or leased. The costs of operating work trains in support of the
Equipment activity are to be included herein.
This activity excludes all expenses related to road property as
described in property accounts 2 through 45, excluding account 44, all
of which should be charged to the Way and Structures activity. It also
excludes expenses in performance of, or support for Transportation,
General and Administrative activities, property used for noncarrier
operations, nonoperating property, and interest or other fixed charges.
Locomotives Subactivity--(XX-21-XX)
(1) Locomotives subactivity of the Equipment activity refers to
repairing, maintaining, leasing, renting, depreciating, and retiring
locomotives. It includes all natural expense object subclassifications
under the Equipment activity that are applicable to locomotives. This
subactivity specifically excludes expenses incurred in operating
locomotives, such as locomotive fuel and lubricants, train crew wages,
operating supplies, servicing (as opposed to maintaining or repairing),
and cleaning which are includable in the Transportation activity, except
when locomotive use is clearly in support of other activities or
subactivities. When locomotives are operated in support of repairing or
maintaining locomotives, the operating costs shall be charged to this
subactivity.
Freight Train Cars Subactivity--(XX-22-XX)
(2) Freight Train Cars subactivity of the Equipment activity refers
to repairing, maintaining, leasing, renting, depreciating, and retiring
freight train cars. It includes all natural expense object
subclassifications under the Equipment activity that are applicable to
freight train cars. This subactivity pertains to all freight train cars
described in property account 53, whether owned or leased, including
freight cars used for hauling freight in company service and cabooses.
It does not pertain to work equipment. This subactivity specifically
excludes expenses incurred in running trains or operating freight cars,
such as for locomotive fuel and lubricants, train crew wages, inspecting
trains, operating supplies, servicing (as opposed to maintaining or
repairing), and cleaning, which are includable in the Transportation
activity, except where such costs are clearly in support of repairing or
maintaining freight cars, other activities or subactivities. When
locomotives or trains are operated in support of repairing or
maintaining freight cars, the operating costs shall be charged to this
subactivity.
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Other Equipment Subactivity--(XX-23-XX)
(3) Other Equipment subactivity of the Equipment activity refers to
repairing, maintaining, leasing, renting, depreciating, and retiring
other equipment. It includes all natural expense object
subclassifications under the Equipment activity which are applicable to
other equipment. The subactivity pertains to all equipment described in
property accounts 44, 46 and 54 through 58, whether such property is
owned or leased. This subactivity specifically excludes expenses
incurred in operating other equipment, such as for fuel and lubricants,
crew wages, inspecting equipment, operating supplies, servicing (as
opposed to maintaining or repairing), and cleaning, which are includible
in the Transportation activity, except where such costs are clearly in
support of other activities or subactivities. When locomotives, trains,
or other equipment are operating in support of repairing or maintaining
other equipment, the operating costs shall be charged to this
subactivity.
Transportation Activity--(XX-30-XX)
(C) Transportation activity refers to operating, servicing,
inspecting, weighing, assembling, and switching trains; operating
highway revenue services; operating facilities in connection with
carrier transportation operations including coal and ore terminals,
intermodal terminals, terminal grain elevators, and others; operating
carfloat and carferry services and related facilities; operating
communications systems which primarily support train operations; and
joint facility transportation operations. It includes various
administrative functions directly supporting transportation operations
including those described in the Administrative Support Operations
subactivity. Work train costs in support of the Way and Structures or
the Equipment activities should be charged to those activities. However,
shipments of company materials, handled in predominantly revenue freight
trains, are appropriately included in this activity. This activity
includes all natural expense object subclassifications such as salaries
and wages, fringe benefits, material and supplies, purchased services,
lost or damaged freight, and casualties.
Train Operations Subactivity--(XX-31-XX)
This activity excludes all expenses assignable to the Way and
Structures, Equipment, and General and Administrative activities, as
well as those expenses for noncarrier operations and nonoperating
functions.
(1) Train Operations subactivity of the Transportation activity
refers to operations of all trains except those performing yard
functions in terminals. It includes running trains in road or way
service; switching trains except where such switching is performed
within yards or terminals; and making customer pick-ups and deliveries
except in yards and terminals.
It also provides for dispatching, controlling, reporting, and
monitoring road train movements; inspecting and lubricating trains;
servicing, fueling, and cleaning (not repairing or maintaining)
locomotives; purchasing or producing electric power for motive power;
and operating supporting activities such as communications, signaling,
crossing protection, and interlockings.
This subactivity also includes crew calling and transporting; crew
lodging, meals, and other expenses; lost or damaged freight; casualties
and insurance; clearing wrecks; and operating joint tracks and
facilities except for yards or specialized services. It also includes
salaries and wages, fringe benefits, material and supplies, fuel and
lubricants, purchased services, casualty and damages, and other natural
expense elements incurred in operating trains.
The Train Operations subactivity excludes the operation of
specialized services, all of which should be charged to the Specialized
Services Operations subactivity. However, road or way switching between
trains and specialized service facilities outside of terminal areas
belongs to the Train Operations subactivity.
Work and other nonrevenue train operating costs are to be charged to
the appropriate supported activity. Shipments of company materials
normally should be charged to this subactivity,
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except where the train movement is exclusively or predominantly for such
nonrevenue purpose where the supported activity should bear the train
operating costs.
Yard Operations Subactivity--(XX-32-XX)
(2) Yard Operations subactivity of the Transportation activity
refers to classifying cars to make-up or break-down trains; sorting and
handling waybills in connection with freight car classification and
switching in yards or terminals; inspecting, servicing, fueling, and
cleaning (not repairing or maintaining) locomotives and cabooses used to
provide yard or terminal services; purchasing or producing electric
power for motive power; diverting or holding cars; and reporting
operating and car movement data related to yards and terminals. It also
includes operating supporting activities in yards or terminals, such as
communications, signaling, and interlockings; yard crew calling and
transporting; yard crew lodging, meals, and other expenses; lost or
damaged freight specifically traceable to occurrences resulting from the
performance of yard operations; casualties and insurance related to yard
operations; clearing wrecks which occurred in the performance of yard
operations; and operating joint yards and terminals.
Within terminals, this subactivity includes pick-up or delivery of
freight cars from or to customer spur tracks, team tracks, freight
houses, interchange tracks, rip tracks, and specialized service
facilities. It also includes salaries and wages, fringe benefits,
material and supplies, fuel and lubricants, purchased services, casualty
and damages, and other natural expense elements incurred in operating
yards and terminals.
The Yard Operations subactivity includes the cost of switching
operations within facilities for Specialized Services and switching or
transfer operations between yards and the specialized service
facilities. The latter is not limited or affected by definitions or
restrictions contained in carrier operating rules or labor agreements.
It is related solely to the defined operations when they are performed
in a yard or terminal area.
Train and Yard Common Subactivity--(XX-33-XX)
(3) Train and Yard Common subactivity of the Transportation activity
refers to the function of adjusting and transferring loads; and placing
and removing car loading devices and grain doors. It also includes lost
or damaged freight not specifically traceable to numerous activities
resulting from performance of train, yard, or specialized services
operations. It also includes salaries and wages, fringe benefits,
material and supplies, purchased services, and other natural expense
elements incurred in performing the functions defined above. It excludes
the natural expense elements of casualties and insurance, which shall be
charged to the Train Operations and Yard Operations subactivities.
Specialized Services Operations Subactivity--(XX-34-XX)
(4) Specialized Services Operations subactivity of the
Transportation activity refers to operating services which are
specialized in nature and in cost characteristics, including all of
those so designated by the Board. The purpose of segregating the cost of
such services is primarily to preclude distortion of general costs
applicable to the Train Operations and Yard Operations subactivities.
Secondarily, further breakout of the costs of operating individual
specialized services can be provided in less detail than the full range
of natural expense accounts, in reports used for recurring cost analysis
purposes pertaining to each type of specialized service.
The designated specialized services operations are as follows:
(a) TOFC/COFC Operations refers to the function of operating rail-
to-ground or water and ground or water-to-rail transfer facilities for
handling trailers or containers, including related storage; and the
highway movement of trailers or containers within a terminal area for
purposes of pick-up, delivery, or interchange.
The service includes loading, tie-down, and/or unloading flat cars
or dollies and piggyback trailers to or from
[[Page 95]]
highway tractors; moving trailers, dollies, or containers within the
facility; servicing, cleaning, and fueling (but not repairing or
maintaining) facility equipment; operating storage areas; and
casualties, claims, and insurance relating to the facility.
TOFC/COFC Operations do not include Plan V or other arrangements,
where there is a division of revenues between the rail and motor
carrier. They do not include switching services performed within the
facility by yard or road crews. They also do not include the functions
of the Way and Structures, Equipment, and General and Administrative
activities, or the Train, Yard, Train and Yard Common, or Administrative
Support Operations subactivities.
(b) Floating Operations refers to operations of water vessels and
equipment in revenue service. They include the operation of carferries,
tugs, barges, lighterage, and all other forms of water craft.
Floating operations exclude operations includable in the
Administrative Support Operations subactivity, and the switching
transfer of cars between general yards or trains and the facility or a
dedicated yard serving the facility, or switching within the dedicated
supporting terminal facility when performed by yard crews. They also do
not include costs appropriate to the Way and Structures, Equipment, or
General and Administrative activities.
Floating operations should be classified by line and terminal
operations. The distribution should be made based on the nature of the
operation and not the facility or equipment. When the service occurs
between distinct terminals, the operation should be considered a line
operation. When the service is conducted within a general terminal or
harbor area, the operation should be considered a terminal operation.
(c) Coal Terminal Operations and Ore Terminal Operations refers to
operations of rail-to-water or water-to-rail transloading facilities for
coal or for ores, including related storage, blending, and other
processing or handling at the facility. These operations include loading
and/or unloading rail cars or water vessels at the facility; moving
commodities within the facility by whatever means; operating the
facility's pollution control equipment; operating and directing the
operations of moorings and tugboats; servicing, cleaning, and fueling
(but not repairing or maintaining) facility equipment; operating storage
areas; and casualties, claims, and insurance relating to the facility.
These terminal operations do not include costs appropriate to the
Way and Structures, Equipment, or General and Administrative activities.
They also do not include costs appropriate to the Train Operations, Yard
Operations, Train and Yard Operations Common, or Administrative Support
Services Operations subactivities. Switching transfer of cars between
general yards or trains and the facility or a dedicated yard serving the
facility and switching within the dedicated supporting terminal facility
when performed by yard crews should be charged to the Yard Operations
subactivity.
(d) Other Marine Terminal Operations refers to the operations of
marine terminals other than those for which a separate designated
specialized service operation category is provided.
(e) Motor Vehicle Loading and Distribution Facility Operations
refers to the operations of facilities for loading, unloading, or
storing motor vehicles.
(f) Protective Service Operations refers to the function of
servicing, cleaning, and fueling (but not repairing or maintaining)
mechanical protective service equipment.
(g) Other Specialized Services Operations refers to the function of
performing rail substitute service, other highway revenue service, LCL
terminal operations, warehouse operations, freight car transloading,
grain elevator terminal operations, livestock feeding operations, and
other specialized services designated by the Board. It includes the
transportation operating expenses of only those services listed above.
Administrative Support Operations Subactivity--(XX-35-XX)
(5) Administrative Support Operations subactivity refers to
operations providing direct administrative support to the overall
Transportation activity. It includes administrative support for the
[[Page 96]]
Common, and the Specialized Services Operations subactivities. The
administrative support operations includes receiving and processing
customer orders, requesting cars, preparing waybills, rating shipments,
billing customers, collecting customer receivables in the ordinary
course of business (not to include treasury, legal, general accounting,
revenue accounting, or credit operations, all of which are chargeable to
the General and Administrative activity), billing and recording
demurrage, reporting interchanges, reporting advances, and the initial
reporting and summarization of input documents for purposes of cash
collection and accounting. Any operations beyond the initial
summarization and reporting of input data are assignable to the General
and Administrative activity except for those otherwise included in the
definition of this subactivity.
Carrier staff, administrative, or clerical operations related to
operating or transportation department general administration should not
be charged to this subactivity. The Administrative Support Operations
subactivity may be performed at local stations, regional offices, or
even at the general offices; however, the location of the operation
performance does not affect its nature. The operations included in this
subactivity should reasonably correlate to the quantity of shipments or
to the quantity of carloadings.
General and Administrative Activity--(XX-60-XX)
(D) General and Administrative activity refers to the providing of
overall administration or other general support for carrier operations.
It comprehends only that portion of general and administrative
activities that relates to carrier operations (as distinguished from
noncarrier operations or nonoperating activities) including executive,
legal, financial, treasury, accounting, budgeting, taxation, corporate
planning, costing, marketing, advertising, traffic, corporate secretary,
public relations, real estate, insurance administration, personnel
administration, pension plan administration, general purchasing, labor
relations, internal auditing, industrial engineering, and regulatory
reporting.
This activity excludes expenses incurred for noncarrier operations
of the carrier company as well as for general administration of the
corporate entity and nonoperating income or expenses. It also excludes
expenses in performance of or direct support for Way and Structures,
Equipment, and Transportation activities, with particular attention to
the Administrative Support Operations subactivity.
Section 3--Function Explanations
Note: Functions do not necessarily correlate to organizational
structure. A particular department may not have a specific USOA expense
function code. However, its costs may be includable under various
function codes. Costs not properly chargeable to specific functions
should be assigned to Function Code 99, Other.
(a) Functions Related to the Way and Structures Activity
(1) Administration Functions.
(02) Administration, Track--General administration and supervision
of central, regional, and divisional engineering functions related to
repair and maintenance of track. Used only in Way and Structures--Other.
Included are:
General engineering and design.
Valuation engineering for maintenance and
improvements.
Planning and supervision of repair and
maintenance work.
Budget preparation, clerical support, and similar
functions.
(03) Administration, Bridges and Buildings--General administration
and supervision of central, regional and divisional engineering
functions related to repair and maintenance of bridges and buildings.
Used only in Way and Structures--Other. Included are:
General engineering and design.
Valuation engineering for maintenance and
improvements.
Planning and supervision of repair and
maintenance work.
Budget preparation, clerical support, and similar
functions.
(04) Administration, Signals--General administration and supervision
of
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central, regional, and divisional engineering functions related to
repair and maintenance of signals. Used only in Way and Structures--
Other. Included are:
General engineering and design.
Valuation engineering for maintenance and
improvements.
Planning and supervision of repair and
maintenance work.
Budget preparation, clerical support, and similar
functions.
(05) Administration, Communications--General administration and
supervision of central, regional, and divisional engineering functions
related to repair and maintenance of communication facilities. Used only
in Way and Structures--Other. Included are:
General engineering and design.
Valuation engineering for maintenance and
improvements.
Planning and supervision of repair and
maintenance work.
Budget preparation, clerical support, and similar
functions.
(06) Administration, Other--General administration and supervision
of central, regional, and divisional engineering functions related to
repair and maintenance of other roadway property. Used only in Way and
Structures--Other. Included are:
General engineering and design.
Valuation engineering for maintenance and
improvements.
Planning and supervision of repair and
maintenance work.
Budget preparation, clerical support, and similar
functions.
(2) Repair and Maintenance Functions--These functions include:
Repair and maintenance work on road property and
equipment, including gang foreman, shop foreman, and other supervisors
with direct authority over workers; all higher levels of supervision are
included in the Administration function.
Work train service. Crew wages are to be charged
directly; other work train expenses except fuel may be apportioned if
not solely identifiable to work train service.
Store expense and shop expense.
(10) Repair and Maintenance, Roadway--Roadway, cuts, fills, banks,
embankments, subgrade, roadbed, ditches, drains, landscaping; cutting
and removing grass, brush, debris; dressing ballast; preventing and
extinguishing fires; patrolling and inspection; roadway relocation.
(11) Repair and Maintenance, Tunnels and Subways--Repaving,
ventilating, lighting, other maintenance.
(12) Repair and Maintenance, Bridges and Culverts--Bridges,
trestles, culverts and elevated structures which carry tracks;
repairing, filling, dredging, cleaning, watching these structures.
(13) Repair and Maintenance, Ties--Cross, switch, bridge, and other
track ties. This function includes expenses associated with unloading,
distributing and placing ties in tracks.
(14) Repair and Maintenance, Rails and Other Track Material--All
track material used in repair of tracks except ballast and ties. This
function includes expenses associated with unloading and installing Rail
and Other Track Material.
(16) Repair and Maintenance, Ballast--Gravel, stone, slag, cinders,
sand, and like material.
(19) Repair and Maintenance, Signals and Interlockers--Signals and
interlockers and related apparatus governing train movement.
(20) Repair and Maintenance, Communications Systems--Telephone,
telegraph, radio, radar, inductive train communication, and other
communication systems, including terminal equipment.
(21) Repair and Maintenance, Power Systems--Power plants,
substations, transmission and distribution systems.
(22) Repair and Maintenance, Highway Grade Crossings--Highway grade
crossing signals, gates, and related apparatus.
(23) Repair and Maintenance, Station and Office Buildings--Station
and office buildings, fixtures, appurtenances, and grounds.
(24) Repair and Maintenance, Shop Buildings--Locomotives--Shops and
buildings, fixtures, appurtenances, and grounds, used for the repair,
maintenance and servicing of locomotives.
(25) Repair and Maintenance, Shop Buildings--Freight Cars--Shops and
buildings, fixtures, appurtenances, and grounds, used for the repair,
maintenance, and servicing of freight cars.
(26) Repair and Maintenance, Shop Buildings--Other--Shops and
buildings,
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fixtures, appurtenances, and grounds, used for the repair, maintenance,
and servicing of revenue service equipment other than locomotives and
freight cars; roadway machines; work equipment and the like.
(27) Repair and Maintenance, Locomotive Servicing Facilities--Fuel
and water stations, fixtures, appurtenances, and grounds.
(28) Repair and Maintenance, Miscellaneous Buildings and Structures.
All permanent buildings and structures, and their fixtures,
appurtenances, and grounds, not otherwise provided for. (Includes
storehouses.)
(29) Repair and Maintenance, Coal Terminals--Wharves, docks, and
other loading or unloading facilities for handling coal, including
conveyors, machinery and fixtures.
(30) Repair and Maintenance, Ore Terminal--Wharves, docks, and other
loading or unloading facilities for handling ores and other bulk mineral
commodities, including conveyors, machinery and fixtures.
(31) Repair and Maintenance, TOFC/COFC--Terminals--TOFC/COFC
terminal structures, fixtures, machinery and appurtenances, used for
transfer of trailers and containers.
(32) Repair and Maintenance, Other Marine Terminals--Marine terminal
structures, fixtures, machinery and appurtenances not otherwise provided
for.
(33) Repair and Maintenance, Motor Vehicle Loading and Distribution
Facilities--Buildings, structures, fixtures, machinery and appurtenances
used for receipt, loading, unloading, and distribution of motor
vehicles.
(35) Repair and Maintenance Facilities for Other Specialized
Services Operations--Buildings, structures, machinery, fixtures and
grounds, used as part or whole of a revenue-producing specialized
service.
(36) Repair and Maintenance, Roadway Machines--Machines and
equipment used for repairs of roadway and structures.
(37) Small tools and Supplies--Cost of small tools and supplies used
in repair and maintenances.
(38) Snow Removal--Removal of snow and ice; plow and flange service;
setting up, taking down and storing fences. If the amount of labor
expense is not substantial, the wages of those employees who perform
snow removal duties may be included in the appropriate expense accounts
for the duties they are normally assigned.
(39) Dismantling Retired Property--Dismantling retired road property
when the property is not to be replaced through normal maintenance,
addition or betterment.
(48) Road Property Damaged--Repair of roadway property and
structures, used in revenue service, and all equipment not used in
revenue service, when damage is caused by derailments, collision, fire,
explosions, sabotage, other casualties, and excluding damage resulting
through normal operations or use; such as part failures, overloads,
overheating, short circuits and similar events. Part failures through
normal operations are those where the resulting damage is restricted to
the unit of road property which experienced the failure. When the damage
extends to other units of road property, related expenses shall be
charged to this function.
(3) Other Function.
(99) Other--All expenses not properly includable in the above
functions.
(b) Functions Related to the Equipment Activity
(1) Administrative Functions.
(01) Administration, General--General administration and supervision
of central, regional, and divisional repair and maintenance functions.
Included are:
General engineering and design.
Valuation engineering for maintenance and
improvements.
Planning and supervision of repair and
maintenance of equipment.
Budget preparation, clerical support, and similar
functions.
(2) Repair and Maintenance Functions--These functions include:
Repair and maintenance work on equipment
including gang foreman, shop foreman, and other supervisors with direct
authority over workers; all higher levels of supervision are included in
the Administrative function.
Store expense and shop expense.
(39) Dismantling Retired Property--Dismantling retired equipment
when the property is not to be replaced
[[Page 99]]
through normal maintenance, addition or betterment.
(40) [Reserved]
(41) Repair and Maintenance, Locomotives--Repair of locomotives in
revenue service.
(42) Repair and Maintenance, Freight Cars--Repair of freight cars
and attached motor equipment in revenue service.
(43) Repair and Maintenance, Trucks, Trailers, Containers in Revenue
Service--Repair, inspection, and lubrication of trucks, trailers and
containers in revenue service.
(44) Repair and Maintenance, Floating Equipment in Revenue Service--
Floating equipment including appurtenances.
(45) Repair and Maintenance, Passenger and Other Revenue Equipment--
Repair, inspection and lubrication of passenger train cars and attached
motor equipment, and other equipment used in revenue service.
(46) Repair and Maintenance, Computer Systems and Word Processing
Systems--Computers and attached peripheral equipment; data recording and
punch-card processing equipment; word processing equipment.
(47) Repair and Maintenance, Work and Other Non-Revenue Equipment--
Rail and floating work equipment and appurtenances, and all other
equipment not used in revenue service and not provided for elsewhere.
(48) Equipment Damaged--Repair of locomotives, freight cars, other
equipment used in revenue service, and all equipment not used in revenue
service, when damage is caused by derailment, collision, fire,
explosions, sabotage, washouts, or other casualties, and excluding
damage resulting through normal operations or use, such as part
failures, overloads, overheating, short circuits and the like. Part
failures through normal operations are those where the resulting damage
is restricted to the equipment that experienced the failure. When the
damage extends to other units of equipment, related repairs shall be
charged to this function.
(49) Repair and Maintenance, Shop Machinery--Locomotives--Repair of
shop machinery and other apparatus, including special foundations used
for the repair, maintenance and servicing of locomotives.
(50) Repair and Maintenance, Shop Machinery--Freight Cars--Repair of
shop machinery and other apparatus, including special foundations for
the repair, maintenance and servicing of freight cars.
(51) Repair and Maintenance, Shop Machinery--Other Equipment--Repair
of shop machinery and other apparatus, including special foundations for
the repair, maintenance and servicing of other equipment.
(3) Other Function.
(99) Other--All equipment expenses not properly includable in the
above functions.
(c) Functions Related to the Transportation Activity
(1) Administrative Function.
(01) Administration, General--General administration and supervision
of central, regional, and divisional operational functions. Included
are:
Planning and supervision of train, yard, common,
specialized services and support operations.
Budget preparation, clerical support, and similar
functions.
[Not applicable to the Train and Yard Common Subactivity.]
(2) Operations Functions.
(56) Engine Crews--Operation of trains in line-haul revenue service
by enginemen, including crew meals, lodging, deadheading and other
expenses.
(57) Train Crews--Operation of trains in line-haul revenue service
by trainmen, including crew meals, lodging, deadheading, and other
expenses.
(58) Dispatching Trains--Costs include dispatchers, supporting
staff, train order stations and operators, office and supplies expense.
(59) Operating Switches, Signals, Interlockers, Retarders, Humps--
Operators, switch tenders, supplies, etc.
(60) Operating Drawbridges--Engineers, tenders, watchmen, supplies,
etc.
(61) Highway Crossing Protection--Gatekeepers, flagmen, lighting,
supplies, etc.
(62) Train Inspection and Lubrication--Inspection and lubrication of
trains (cars and locomotives), including minor repairs made by
inspectors. This includes the inspection of train locomotives when
indistinguishable from
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the inspection and lubrication of train cars.
(63) Clearing Wrecks--Removal of equipment, freight or other goods,
and property of others damaged in wrecks; note that repair of wreck
damage caused to roadway property and equipment is classified as
function Code 48--Road Property and Equipment Damaged.
(64) Switch Crews--Operation of trains and locomotives in yard and
terminal revenue switching service by enginemen and trainmen, including
associated expenses.
(65) Controlling Operations--Directing the operations of yard and
terminal interchange and classification service, including office and
supplies expense.
(66) Yard and Terminal Clerical--Clerical work in support of the
operation of yard and terminal switching and classification service,
including office and supplies expense.
(67) Locomotive Fuel--Cost of locomotive fuel used in all service,
including the receipt, storage, and dispensing of the fuel.
(68) Electric Power Purchased/Produced for Motive Power--Purchase
cost and cost of producing electric power for use by electrically-
powered motive equipment in all service.
(69) Servicing Locomotives--Preparing locomotives for switching
service in yards and for train service, including moving locomotives
around engine yards. This includes the inspection and lubrication of
yard locomotives and may include the inspection and lubrication of train
locomotives where distinguishable from the inspection and lubrication of
train cars.
(70) Cleaning Car Interiors--Cleaning and preparing car interiors
for revenue service, including minor repairs made by car cleaners. This
includes payment for cleaning cars due to spoilage of perishable
shipments.
(71) Adjusting and Transferring Loads--Transferring, picking up,
straightening, and reloading freight in the ordinary course of
transportation.
(72) Car Loading Devices and Grain Doors--Servicing car loading
devices and placing and removing grain doors.
(73) Pickup & Delivery, Marine Line Haul & Rail Substitute Service--
Operation of trucks, floating equipment, and all other specialized
equipment providing line haul movement for revenue including TOFC/COFC
pick-up and delivery.
(74) Loading & Unloading and Local Marine--All other specialized
services in the transportation activity such as TOFC/COFC loading,
unloading, and tie down; coal and ore loading and unloading; and other
similar functions.
(75) Protective Services--Inspecting, servicing, cleaning, and
fueling protective equipment and devices.
(76) Clerical and Accounting Employees--Direct administrative
support to the Transportation Activity, including receiving and
processing customer orders, requesting cars, preparing waybills, rating
shipments, billing customers, collecting customer receivables in the
ordinary course of business, billing and recording demurrage, reporting
interchanges, reporting advances, and the initial summarization and
reporting of input data.
(77) Communications Systems Operation--Cost of operating
communications systems; when such operations are an integral part of
other functions, only specifically identifiable costs of operating
communications systems are to be allocated to this function.
(78) Loss and Damage Claims Processing--Receipt, investigation,
other handling, and adjustment and settlement of claims for loss or
damage of freight or other goods carried in revenue service. Does not
include handling claims for personal injury or for loss or damage of
other property.
(3) Other Function.
(99) Other--All transportation expenses not properly includable in
the above functions.
(d) Functions Related to the General and Administration Activity
(1) Administrative Function.
(01) Administration, General--General administration and supervision
of central, regional, and divisional general functions. Included are:
Planning and supervision of general and
administrative functions.
Budget preparation, clerical support, and similar
functions. It includes the overall responsibility for two or more of the
General and Administrative functions listed below or the responsibility
that expands to more than one activity.
[[Page 101]]
(2) General Functions.
(86) Accounting, Auditing, Finance--General and corporate
accounting, auditing by internal auditors and outside accountants,
treasury, tax accounting and returns, financial reporting, corporate
planning related to investment decisions and budgeting.
(87) Management Services and Data and Word Processing--Systems
planning and design, programming, computer operations, data control, key
entry of data, and related activities; This includes operating expenses
associated with a particular computer system or word processing
equipment that is dedicated to more than one activity. This does not
include expenses associated with computer systems or word processing
equipment dedicated exclusively to the Way and Structure, Equipment or
Transportation Activity; these expenses shall be charged to the
appropriate subactivity/function.
(88) Marketing--Market planning and analysis, traffic analysis,
costing, pricing, and related activities.
(89) Sales--Traffic solicitation and related sales efforts.
(90) Industrial Development--Efforts to locate industries on real
estate accessible to the railroad's lines for the purpose of creating
future revenues.
(91) Personnel and Labor Relations--Efforts to attract and retain
employees, handle fringe benefit plans, monitor and negotiate labor
contracts, maintain employee data and records, coordinate training
programs, handle grievances, handle employee transfers, operate job
safety and equal opportunity programs, and related activities.
(92) Legal and Secretarial--Legal functions handled by attorneys and
supporting staff; including lawsuits, injury and damage claims, commerce
matters, and similar functions; corporate secretarial functions
involving shareholder records, corporate minutes, stock certificates,
and similar items.
(93) Public Relations and Advertising--Public relations activities
with governmental bodies, shippers, and the general public; advertising
in the media, booklets, publications; open houses and tours; and similar
activities.
(94) Research and Development--Research into the use of methods,
procedures, practices, equipment, machinery tools, and plant, and in
determining and measuring the impact of factors or costs not previously
known, with the intention of finding ways to improve maintenance,
operations, administration, rates, productivity, environmental impact,
and similar items. Does not include specific studies or development
efforts for which an implementation decision has already been made.
(3) Other Function.
(99) Other--All general and administration expenses not properly
includable in the above functions.
INCOME ACCOUNTS--Table of Contents
Ordinary Items--Table of Contents
501 Railway operating revenues.
This account is a summarization of Railway Operating Revenue
Accounts 101 to 122. It excludes transfers from governmental authorities
except when the transfer payment is for specific services for
transporting property or persons by rail line other than commuter
operations and local rail service subsidies granted under authority of
the Railroad Revitalization and Regulatory Reform Act of 1976 [See
Instruction 1-15(e)(2)].
[52 FR 4346, Feb. 11, 1987]
502 Railway operating revenues--transfers from government authorities
for current operations.
This account shall include amounts received or receivable from
Federal, state, or municipal authorities which are specifically
designated to offset operating expenses, or which may be applied at the
discretion of the railroad to operating expenses and/or railroad
property.
This account shall also include amounts received from government
authorities to offset operating costs sustained on specific lines or in
certain regions. Examples are: (1) Local Rail Service Assistance
Subsidies granted to the carrier under authority of the Railroad
Revitalization and Regulatory Reform Act of 1976, and (2) payments by
regional transit authorities
[[Page 102]]
in connection with specified operations performed by the carrier.
This account shall also include indirect receipts which reduce
operating expenses, such as assumption of station maintenance costs,
abatement of taxes, or other indirect contributions by government
agencies, if clearly identifiable and measurable.
Note: This account shall not include receipts from government
authorities designated for the acquisition, addition to, or improvement
of railway operating property. (See instruction 1-15.)
(49 U.S.C. 304, 320)
[43 FR 30558, July 17, 1978]
503 Railway operating revenues--amortization of deferred transfers from
government authorities.
This account shall include the amortization applicable to amounts
representing the cost of acquisition, addition to, or improvement of
depreciable operating property received from Federal, state, or
municipal authorities. (See instruction 1-15, and account 783,
``Deferred Revenues--Transfers from Government Authorities.'')
(49 U.S.C. 304, 320)
[43 FR 30558, July 17, 1978]
506 Revenues from property used in other than carrier operations.
This account shall include the total revenues derived from property
used in other than carrier operations, the cost of which is includible
in balance-sheet account 737, ``Property used in other than carrier
operations.''
510 Miscellaneous rent income.
(a) This account shall include such rents of property owned and
controlled by the accounting carrier as are not provided for in the
foregoing accounts.
(b) This account shall be charged with the cost of maintenance of
the property rented, also specific incidental expenses in connection
with such property, such as the cost of negotiating contracts,
advertising for tenants, fees paid conveyancers, collectors'
commissions, and analogous items.
Note A: Taxes on property the rent of which is creditable to this
account shall be charged to account 64-61-00, Property Taxes.
Note B: The rent from property carried in account 737, Property used
in other than carrier operations, shall not be included in this account.
Such rents shall be included in account 506, Revenues from property used
in other than carrier operations.
Note C: Rent and other income from real estate acquired for new
lines or for additions and betterments shall be credited to the
appropriate road and equipment accounts until the completion or coming
into service of the property.
Note D: Rent and other income from real estate acquired for new
lines or for additions and betterments shall be credited to the
appropriate road and equipment accounts until the completion or coming
into service of the property.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4346, Feb. 11, 1987]
512 Separately operated properties; profit.
(a) This account shall include amounts earned under the terms of
agreements or contracts whereby the net income resulting from the
operation by others or properties of other companies having a separate
corporate existence is to be paid, in whole or in part, to the
accounting company.
(b) In determining the amount earned by the accounting company,
consideration shall be given not only to the operating revenues and
operating expenses but also to other items of income or deduction which
affect that amount.
Note A: The amount payable by the operating company shall be charged
by it to account 550, Income Transferred under Contracts and Agreements.
Note B: Dividends or other returns upon securities issued by
separately operated companies, and held or controlled by the accounting
company, shall be included in accounts 513, ``Dividend income,'' 514,
``Interest income,'' or 516, ``Income from sinking and other funds,'' as
may be appropriate.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
513 Dividend income.
(a) This account shall include dividends declared on railway and
other stocks, the income from which is the property of the accounting
company, whether such stocks are owned by the accounting company and
held in its treasury or deposited in trust, or are controlled through
lease or otherwise.
[[Page 103]]
(b) Dividends declared shall not be credited prior to actual
collection unless their payment is reasonably assured by past
experience, guaranty, anticipated provision, or otherwise. (See note C
to account 708, ``Interest and dividends receivable.'')
(c) Accruals of guaranteed dividends may be included in this account
if their payment is reasonably assured.
Note A: This account shall not include credits for dividends on
stocks issued or assumed by the accounting company and owned by it,
whether pledged as collateral or held in its treasury, in special
deposits, or in sinking or other funds.
Note B: Dividends on stocks of other companies held in sinking or
other funds shall be credited to account 516, ``Income from sinking and
other funds.''
514 Interest income.
(a) This account shall include the interest on securities and
debenture stock of other companies, the income from which is the
property of the accounting company whether such securities are owned by
the accounting company and held in its treasury or deposited in trust,
or are controlled through lease or otherwise.
(b) The account shall also include interest on notes and other
evidences of indebtedness and interest on bank balances, open accounts,
and other analogous items, including discount or short-term notes.
Interest shall not be accrued unless its payment is reasonably assured
by past experience, guaranty, anticipated provision, or otherwise. (See
note C to account 708, ``Interest and dividends receivable.'')
(c) At the option of the accounting company there may be included
each year in this account the portion, applicable to the fiscal period,
of the amount requisite to extinguish, during the interval between the
date of acquisition and the date of maturity, the discount or premium on
securities of other companies owned (other than short-term notes).
Amounts thus credited or charged shall be concurrently charged or
credited to the account in which the cost of the securities is carried.
The discount on short-term notes shall be distributed through equal
monthly credits, over the terms of the notes.
Note A: This account shall not include interest on securities issued
or assumed by the accounting company and owned by it, whether pledged as
collateral or held in its treasury, in special deposits, or in sinking
or other funds.
Note B: Interest on securities other than those of the accounting
company, and on other assets held in sinking or other funds shall be
included in account 516, ``Income from sinking and other funds.''
Note C: Discount on bills for material purchased shall be credited
to the accounts to which is charged the cost of the material with
respect to which the discount is allowed.
516 Income from sinking and other funds.
(a) This account shall include the income on cash, securities, and
other assets (not including securities issued or assumed by the
accounting company) held in sinking and other funds. (See note C to
account 708, ``Interest and dividends receivable.'')
(b) At the option of the accounting company there may be included
each year in this account the portion, applicable to the fiscal period,
of the amount requisite to extinguish, during the interval between the
date of acquisition and the date of maturity, the discount or premium on
funded securities held in sinking or other funds. Amounts thus credited
or charged shall be concurrently charged or credited to the account in
which the cost of the securities is carried.
517 Release of premiums on funded debt.
This account shall include, during each fiscal year, such proportion
of the premiums on outstanding funded debt as may be applicable to the
period. (See instruction 5-3.)
518 Reimbursement received under contracts and agreements.
(a) This account shall include amounts received or receivable from
other companies or individuals, representing the whole or a part of the
net loss of the accounting company, when under the terms of agreements
or contract, no obligation for subsequent reimbursement is incurred.
(b) In determining the amount receivable by the accounting company,
consideration shall be given not only
[[Page 104]]
to the operating revenues and operating expenses, but also to other
items of income or deduction which affect that amount.
Note: The amount payable shall be charged by the contributing
company to account 545, ``Separately operated properties--Loss.''
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
519 Miscellaneous income.
(a) This account shall include all items, not provided for
elsewhere, properly creditable to income accounts during the current
year. Among the items which shall be included in this account are:
Cancellation of balance sheet accounts representing unclaimed wages
and vouchered accounts written off because of carrier's inability to
locate the creditor.
Profit from sale of securities carried as temporary cash
investments.
Profit from sale of land used for transportation purposes, of
noncarrier property and of securities acquired for investment purposes.
Profit from company bonds reacquired.
Decreases in the valuation allowance (contained within account 702)
for the marketable equity securities included in current assets.
(b) Gains from extinguishment of debt shall be aggregated and, if
material, credited to account 570, ``Extraordinary Items,'' upon
approval by the Board; however, gains from extinguishment of debt
(excluding debt maturing serially) which is made to satisfy sinking fund
requirements, shall be recorded in this account regardless of amount.
531 Railway operating expenses.
This account shall include total expenses caused by operations, as
shown in the primary expense accounts provided in these regulations.
534 Expenses of property used in other than carrier operations.
This account shall include depreciation, rent, taxes, and other
expenses incurred on property used in other than carrier operations.
Note: If property for which rent expense is includable in this
account is sublet, the rent from the sublease shall be included in
account 506, Revenues from property used in other than carrier
operations.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
544 Miscellaneous taxes.
This account shall include all accruals for taxes not provided for
elsewhere, such as taxes on securities owned, and taxes on income from
securities owned.
545 Separately operated properties; loss.
(a) This account shall include amounts payable under the terms of
agreements or contracts whereby the net loss resulting from the
operation by others of properties of other companies having a separate
corporate existence is to be paid, in whole or in part, by the
accounting company.
(b) In determining the amount payable by the accounting company,
consideration shall be given not only to the operating revenues and
operating expenses, but also to other items of income or deductions
which affect that amount.
Note A: The amounts receivable by the operating company shall be
credited by it to account 518, Reimbursements received under contracts
and agreements.
Note B: Dividends or other returns upon securities issued by
separately operated companies and held or controlled by the accounting
company shall not be included in this account to offset a deficit
payable, but in accounts 513, ``Dividend income,'' or 514, ``Interest
income,'' as may be appropriate.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
546 Interest on funded debt.
This account shall include the current accruals of interest on all
classes of long-term debt, the principal of which is includable in
accounts 765, Funded debt unmatured; 766, Equipment obligations; 767,
Receivers' and trustees' securities; 768, Debt in default; and 769,
Accounts Payable; affiliated companies.
Note A: This account shall not include charges for interest on
funded debt obligations issued or assumed by the accounting company and
owned by it, whether pledged as collateral or held in its treasury, in
special deposits, or in sinking or other funds.
[[Page 105]]
Note B: When funded debt is incurred for new lines or extensions, or
for addition and betterment purposes, the accruals of interest on such
funded debt (less interest received on unexpended balances), to the date
of completion or coming into service of the property so acquired shall
be includable in the road and equipment accounts.
Note C: This account shall be maintained so as to show separately:
(a) Fixed interest which will be paid, or for which provision for
payment will be made, when the interest matures; (b) interest in
default; and (c) contingent interest determined to be payable.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
547 Interest on unfunded debt.
This account shall include interest accrued on unfunded debt, such
as short-term notes payable on demand or having maturity dates of one
year or less from dates of issue, and open accounts, including discount
and expense on demand and short-term loans, interest on receipts
outstanding for installments paid on capital stock, interest on deferred
payments for public improvements, interest on tax deficiencies,
overcharge claims and court awards, and other analogous items. The
discount on short-term notes, if of a considerable amount shall be
distributed through equal monthly charges, over the term of the notes.
Note: When short-term notes or other evidences of unfunded
indebtedness are issued for new lines or extensions or for addition and
betterment purposes the accrual of interest to the date of completion or
coming into service of the property shall be included in the road and
equipment accounts.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
548 Amortization of discount on funded debt.
(a) This account shall be charged during each fiscal period with the
proportion of the discount on funded debt obligations applicable to that
period. This proportion shall be determined according to a rule the
uniform application of which through the interval between the date of
sale and the date of maturity will extinguish the discount on funded
debt.
(b) The charge to this account for any period must not be either
greater or less than the proportion of the balance remaining unamortized
applicable to that period so long as any portion of the discount remains
unextinguished. However, the entire amount for the discount and expense
applicable to any particular issue of obligations may be charged
directly to this account at time of issue when the aggregate of such
amounts does not appreciably affect the accounts. (See instruction 5-
3(b).)
549 Maintenance of investment organization.
This account shall include the directly assignable administration
expenses of the accounting company which are incident to its investments
in leased or nonoperating physical property, and in stocks, bonds, or
other securities.
Items of Expense
Advertising annual reports (lessor companies only).
Calls for bonds in accordance with sinking fund provisions of mortgages.
Directors' fees.
Printing and mailing dividend checks.
Publishing and mailing annual reports and other corporate statements to
shareholders.
Publishing notices of declaration of dividends.
Law expenses.
Office expenses.
Salaries of officers, clerks, and attendant.
Stationery and printing.
Note: Administration expenses incident to railway operation are
includible in the primary accounts provided for in operating expense
general account series 60-00-00.
550 Income transferred under contracts and agreements.
(a) This account shall include the whole or any portion of the
income of the accounting company payable to another company under the
terms of agreements or contracts without obligation for reimbursement.
(b) In determining the amount payable by the accounting company,
consideration shall be given not only to operating revenues and
operating expenses, but also to other items of income or deduction which
affect that amount.
Note A: The amount receivable by the other company shall be credited
by it to account 512, ``Separately operated properties--Profit.''
[[Page 106]]
Note B: Dividends or other payments upon securities issued or
assumed by the accounting company shall not be included in this account.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
551 Miscellaneous income charges.
(a) This account shall include items, not otherwise provided for in
the other income accounts. This includes:
Income tax on the interest on the accounting company's funded debt when
these taxes are assumed by the company.
Payments of old accounts previously written off.
Penalties and fines for violation of the Interstate Commerce Act or
other federal and state laws.
Loss on sale of securities carried as temporary cash investments.
Loss on sale of land used for transportation purposes and of noncarrier
property.
Loss on sale of securities acquired for investment purposes, and charges
to write down the ledger value of such securities because of impairment
in their value.
Loss from company bonds reacquired.
Increases in the valuation allowance (contained within account 702) for
the marketable equity securities included in current assets.
Contributions for charitable, social, or community welfare purposes
that do not have a direct relation to the protection of company
property, development of its business, or welfare of its employees.
(b) Losses from extinguishment of debt shall be aggregated and, if
material, charged to account 570, ``Extraordinary Items (net),'' upon
approval by the Board; however, losses from extinguishment of debt
(excluding debt maturing serially) which is made to satisfy sinking fund
requirements, shall be included in this account regardless of amount.
(c) Contributions for charitable, social, or community welfare
purposes that have a direct relation to the protection of company
property, development of its business, or welfare of its employees
should be charged to account 61-61-99, Other Expenses--General and
Administrative--Other.
(49 U.S.C. 12, 20, 304, 913, and 1012)
[42 FR 35017, July 7, 1977, as amended at 42 FR 64350, Dec. 23, 1977; 52
FR 4347, Feb. 11, 1987; 67 FR 57533, Sept. 11, 2002]
553 Uncollectible accounts.
This account shall include losses on receivable, notes, or claims
that are not includible in account 63-61-00. ``General--Uncollectible
Accounts--General and Administrative.''
555 Unusual or infrequent items (debit) credit.
This account shall include material items unusual in nature or
infrequent in occurrence, but not both, accounted for in the current
year in accordance with the text of instruction 1-2(d), upon approval by
the Board.
556 Income taxes on ordinary income.
This account shall include accruals for Federal, State and other
income taxes applicable to ordinary income. See the text of account 590,
for recording other income tax consequences.
557 Provision for deferred taxes.
(a) This account shall include the net tax effect of all material
timing differences [See definition 17(e)] originating and reversing in
the current accounting period and the future tax benefits of loss
carryforwards recognized in accordance with Instruction 1-10.
(b) This account shall include credits for the amortization of the
investment tax credit if the carrier elected to use the deferred method
of accounting for the investment tax credit. (See instruction 1-10.)
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987; 67
FR 57533, Sept. 11, 2002]
560 Income or loss from operations of discontinued segments.
This account shall include the results of operations of a segment of
a business (see definition 32(a)), after giving effect to income tax
consequences, that has been or will be discontinued in accordance with
the text of instruction 1-2(d), upon approval by the Board.
562 Gain or loss on disposal of discontinued segments.
This account shall include the gain or loss from the disposal of a
segment of a business, after giving effect to income tax consequences,
in accordance
[[Page 107]]
with the text of instruction 1-2(d), upon approval by the Board.
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
570 Extraordinary items (net).
(a) This account shall include extraordinary items accounted for
during the current accounting year in accordance with the text of
instruction 1-2(d), upon submission of a letter from the carrier's
independent accountants, approving or otherwise commenting on the item
and upon approval by the Board.
(b) This account shall be maintained in a manner sufficient to
identify the nature and gross amount of each debit and credit.
(c) Income tax consequences of charges and credits to this account
shall be recorded in account 590, ``Income taxes on extraordinary
items,'' or account 591, ``Provision for deferred taxes--extraordinary
items.''
590 Income taxes on extraordinary items.
This account shall include the estimated income tax consequences
(debit or credit) assignable to the aggregate of items of both taxable
income and deductions from taxable income which for accounting purposes
are classified as unusual and infrequent, and are recorded in account
570, ``Extraordinary Items (Net).'' The tax effect of any timing
differences caused by recognizing an item in the account provided for
extraordinary items in different periods in determining accounting
income and taxable income shall be included in account 591, ``Provision
for deferred taxes--extraordinary items.''
591 Provision for deferred taxes--extraordinary items.
This account shall include debits or credits for the current
accounting period for income taxes deferred currently, or for
amortization of income taxes deferred in prior accounting periods
applicable to items of revenue or expense included in account 570,
``Extraordinary Items (Net).'' (See instruction 1-10.)
592 Cumulative effect of changes in accounting principles.
This account shall include the cumulative effect of changing to a
new accounting principle, after giving effect of income tax
consequences, in accordance with instruction 1-2(d), upon approval by
the Board.
Form of Income Statement
I. Ordinary Items
501 Railway operating revenues (exclusive of transfers from ......
government authorities)........................................
503 Railway operating revenues (amortization of deferred ......
transfers from government authorities).........................
502 Railway operating revenues (amortization of deferred ......
transfers from government authorities..........................
531 Railway operating expenses.................................. ......
-------
Net Revenue from Railway Operation \1\........................ ......
=======
II. Other Income
506 Revenues from property used in other than carrier operations ......
510 Miscellaneous rent income................................... ......
512 Separately operated properties--profit...................... ......
513 Dividend income............................................. ......
514 Interest income............................................. ......
516 Income from sinking and other funds......................... ......
517 Release of premiums on funded debt.......................... ......
518 Reimbursements received under contracts and agreements...... ......
519 Miscellaneous income........................................ ......
Income from affiliated companies:
Dividends..................................................... ......
Equity in undistributed earnings (losses)..................... ......
-------
Total income from affiliated companies...................... ......
=======
Total other income.......................................... ......
=======
Total income................................................ ......
=======
III. Miscellaneous Deductions From Income
534 Expenses of property used in other than carrier operations.. ......
535 Taxes on property used in other than carrier operations..... ......
543 Miscellaneous rent expense.................................. ......
544 Miscellaneous taxes......................................... ......
545 Separately operated properties-loss......................... ......
549 Maintenance of investment organization...................... ......
550 Income transferred under contracts and agreements........... ......
551 Miscellaneous income charges................................ ......
553 Uncollectible accounts...................................... ......
-------
Total miscellaneous deductions.............................. ......
=======
Income available for fixed charges.......................... ......
IV. Fixed Charges
546 Interest on funded debt:
(a) Fixed interest not in default............................. ......
(b) Interest in default....................................... ......
547 Interest on unfunded debt................................... ......
548 Amortization of discount on funded debt..................... ......
-------
Total fixed charges......................................... ......
Income after fixed charges.................................. ......
=======
V. Other Deductions
546 Interest on funded debt: (c) Contingent interest............ ......
[[Page 108]]
VI. Unusual or Infrequent Items
555 Unusual or infrequent items (debt) credit................... ......
Income (loss) from continuing operations (before income taxes) ......
VII. Provision for Income Taxes
556 Income taxes on ordinary income:
Federal income taxes.......................................... ......
State income taxes............................................ ......
Other income taxes............................................ ......
557 Provision for deferred taxes................................ ......
Income from continuing operations............................. ......
VIII. Discontinued Operations
560 Income or loss from operations of discontinued segments ......
(less applicable income taxes of $----)........................
562 Gain or loss on disposal of discontinued segments (less ......
applicable income taxes of $----)..............................
-------
Income (loss) before extraordinary items.................... ......
=======
IX. Extraordinary Items and Accounting Changes
570 Extraordinary items (net)................................... ......
590 Income taxes on extraordinary items......................... ......
591 Provision for deferred taxes--extraordinary items........... ......
-------
Total extraordinary items................................... ......
=======
592 Cumulative effect of changes in accounting principles (less ......
applicable income taxes of $----)..............................
-------
Net income.................................................. ......
------------------------------------------------------------------------
\1\ Reconciliation of net railway operating income (NROI):
Net revenues from railway operations.......................... ......
(556) Income taxes on ordinary income........................... ......
(557) Provision for deferred income taxes....................... ......
(560) Taxes applicable to income or loss from operations of ......
discontinued segments..........................................
(562) Taxes applicable to gain or loss on disposal of ......
discontinued segments..........................................
Income from lease of road and equipment (formerly account 509) ......
Rent for leased roads and equipment (formerly account 542).... ......
-------
Net railway operating income................................ ......
(49 U.S.C. 304, 320)
[42 FR 35017, July 7, 1977, as amended at 43 FR 30558, July 17, 1978; 67
FR 57533, Sept. 11, 2002]
RETAINED EARNINGS ACCOUNTS--Table of Contents
Credit--Table of Contents
601 Credit balance (at beginning of calendar year).
This account shall include the net credit balance in the retained
earnings account at the beginning of the calendar year.
601.5 Prior period adjustments to beginning retained earnings account.
This account shall include adjustments net of assigned income taxes,
in accordance with the text of instruction 1-2(d), to the balance in the
retained earnings account at the beginning of the calendar year, upon
approval by the Board.
602 Credit balance transferred from income.
This account shall show the net credit balance brought forward from
the income account for the calendar year.
603 Appropriations released.
This account is provided to return to unappropriated retained
earnings the amount of appropriations no longer required. The account
shall be subdivided to show the nature of the appropriations being
released and the circumstances of the release shall be fully described.
606 Other credits to retained earnings.
This account shall include other credit adjustments, net of assigned
income taxes, not provided for elsewhere in this system but only after
such inclusion has been authorized by the Board.
Debit--Table of Contents
611 Debit balance (at beginning of calendar year).
This account shall include the net debit balance in the retained
earnings account at the beginning of the calendar year.
612 Debit balance transferred from income.
This account shall show the net debit balance brought forward from
the income account for the calendar year.
616 Other debits to retained earnings.
(a) This account shall include losses from resale of reacquired
capital stock, and charges which reduce or write-off discount on capital
stock issued by the company, but only to the extent that such charges
exceed credit balances in account 795, ``Other capital,'' applicable to
net gains from reacquisition and
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resale or retirement of such subclass of capital stock. See instruction
5-4.
(b) This account shall also include other debit adjustments, net of
assigned income taxes, not provided for elsewhere in this system but
only after such inclusion has been authorized by the Board.
620 Appropriations for sinking and other funds.
This account shall be charged and account 797, ``Retained earnings;
Appropriated,'' shall be credited with amounts appropriated pursuant to
provisions of reorganization plans, mortgages, deeds of trust, or other
contracts requiring payments into sinking funds, capital funds, and
other funds.
621 Appropriations for other purposes.
This account shall be charged and account 797, ``Retained earnings;
Appropriated,'' shall be credited with the amount of appropriations for
general contingencies, indefinite possible future losses and other
corporate purposes not provided for elsewhere. The appropriations shall
be released when their respective purposes have been served.
623 Dividends.
This account shall be charged with the amount of dividends declared
on actually outstanding capital stock issued or assumed by the company.
If the dividend is not payable in cash, the securities or other property
to be distribruted shall be described with sufficient particularity to
identify the distribution. This account shall be subdivided to show
separately the dividends declared on the various subclasses of capital
stock.
Note: This account shall not include charges for dividends on
capital stock issued or assumed by the company and owned by it, whether
pledged as collateral or held in its treasury, in special deposits, or
sinking or other funds.
GENERAL BALANCE SHEET ACCOUNTS EXPLANATIONS--Table of Contents
Assets--Table of Contents
Current Assets
701 Cash.
(a) This account shall include money, checks, sight drafts, and
sight bills of exchange in the hands of the accounting company's
financial officers and agents, or in transit from its agents and
conductors for which such agents and conductors have received credit. It
shall include, also, deposits with banks and trust companies available
for use on demand, and savings accounts subject to the usual clause
reserving the right to defer payment for a specified number of days.
(b) The amount of checks and drafts, which have been transmitted to
payees and which remain unpaid at the close of the accounting period,
shall be credited to this account. When the amount of such checks and
drafts cannot be determined with absolute accuracy, an estimate of the
amount shall be used. Amounts not transmitted to payees shall be
included in the appropriate liability accounts.
Note: Compensating balances under an agreement which legally
restricts the use of such funds shall not be included in this account.
Such balances shall be included in account 703, ``Special Deposits,'' or
717, ``Other Funds,'' as appropriate.
702 Temporary cash investments.
This account shall include the cost of securities and other
obligations acquired for the purpose of temporarily investing cash, such
as United States Treasury certificates, marketable securities, time
drafts receivable, demand loans, time loans, time deposits with banks
and trust companies, and other similar investments of a temporary
character, which are readily convertible into cash at substantially
their recorded cost.
This account shall be subdivided to reflect the marketable equity
securities portion (and its corresponding valuation allowance) and other
temporary investments. (See instruction 5-2.)
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703 Special deposits.
This account shall include cash deposits, either placed in the hands
of trustees or under the direct control of the reporting company, which
are restricted for specific purposes. Examples are those deposits made
for the payment of dividends and interest due within one year, the
liquidation of other current liabilities, to guarantee fulfillment of
current contract obligations to meet specific operating requirements, or
compensating balances (See definition 10) under an agreement which
legally restricts the use of such funds, and which constitute support
for short-term borrowing arrangements. Subaccounts may be set up, if
necessary, to account for special deposits for specific purposes.
Note: Deposits available for general company purposes shall be
included in account 701, ``Cash.''
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
704 Loans and notes receivable.
This account shall include the book value of all collectible
obligations in the form of demand or time loans and notes receivable, or
other similar evidences (except interest coupons) of money receivable
within a time not exceeding one year from date of issue.
Note A: Current loans and notes receivable from affiliated companies
shall be included in account 708.5, ``Receivables from affiliated
companies.''
Note B: Obligations held as investments which mature more than one
year after date of issue shall be included in accounts 721,
``Investments and advances: Affiliated companies,'' or 722, ``Other
investments and advances,'' as appropriate.
Note C: Loans and notes receivable acquired for the purpose of
temporarily investing cash shall be included in account 702, ``Temporary
cash investments.''
705 Accounts receivable; interline and other balances.
This account shall include the net debit balances receivable from
other companies representing items such as interline freight, passenger,
switching, and baggage revenues, charges for equipment interchanged on a
per diem or mileage basis, and charges, for car repairs, loss and damage
freight claims, and overcharge claims.
Note: The amount to be entered in this account is not the net
balance between this account and account 752, ``Accounts payable;
Interline and other balances.'' Net credit balances payable to other
companies shall be included in account 752.
706 Accounts receivable; customers.
This account shall include amounts currently due from customers for
transportation and other charges incidental to transportation, and from
agents and other representatives charged with the collection or custody
of current revenues.
Note: Amounts advanced to general and special agents as working
funds shall be included in account 710, ``Working funds.''
707 Accounts receivable; other.
This account shall include amounts due in audited accounts, such as
those due from the United States or other Governments for the
transportation of mails and Government property, and from express
companies for express facilities furnished under contract; miscellaneous
bills against other railway companies, corporations, firms, and
individuals; and other similar items.
Note A: The amount to be entered in this account is not the net
balance between this account and account 754, ``Accounts payable;
Other.''
Note B: Amounts due from affiliated companies for miscellaneous
bills and other items subject to current settlement shall be included in
account 708.5, ``Receivables from affiliated companies.''
708 Interest and dividends receivable.
This account shall include the amount of interest accrued to the
date of the balance sheet on bonds, mortgages, notes, and other
commercial paper owned, on loans made, open accounts, bank deposits, and
the amount of dividends declared on stocks owned, and dividends accrued
on such stocks when contracts require that the dividends be paid at
stated times.
Note A: No amount representing interest or dividends receivable
shall be included in this account unless its payment is reasonably
assured by past experience, anticipated provision, or otherwise.
Note B: No dividends or other returns on securities issued or
assumed by the accounting company shall be included in this account.
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Note C: If settlement of amounts included in this account is not
made when due, such amounts that are not subject to current settlement
shall be transferred to account 741, ``Other assets,'' at their
estimated realizable value. Items of current character but of doubtful
value, as well as noncurrent items, shall be written off to the extent
of any estimated uncollectible portion by charge to account 553,
``Uncollectible accounts''. If notes are taken in settlement of amounts
included in this account, the amounts shall be transferred to account
704, ``Loans and notes receivable,'' or account 741, as appropriate.
(See instruction 5-1.)
Note D: Current interest and dividends receivable from affiliated
companies shall be included in account 708.5, ``Receivables from
affiliated companies,'' and noncurrent amounts receivable shall be
included in account 721, ``Investments and advances; Affiliated
companies.''
708.5 Receivables from affiliated companies.
This account shall include amounts due from affiliated companies
which are subject to current settlement such as deposits, demand or time
loans, notes receivable, interest, dividends, miscellaneous bills and
similar items.
Note: Receivables from affiliated companies, representing net debit
balances for items such as operating revenues, charges for equipment
interchanged, car repairs and claims, shall not be included in this
account but in account 705, ``Accounts receivable; Interline and other
balances.''
709 Accrued accounts receivable.
This account shall include estimates of all unaudited current items
receivable by the carrier to the date of the balance sheet, including
those which are creditable to revenue, expense, or income accounts.
Among the items which shall be included in this account are:
Amounts receivable from others for unreported interline traffic.
Amounts receivable from others for use of facilities, including
equipment, for which bills have not been rendered.
Amounts receivable from others for services for which bills have not
been rendered.
Rents receivable for which bills have not been rendered.
709.5 Allowance for uncollectible accounts.
This account shall be credited with amounts provided for receivables
which may become uncollectible, and shall be maintained to show the
amount of each separate allowance set out below and the amounts of
debits and credits thereto:
(a) Allowance for receivables applicable to transportation
operations. Credits to this subdivision shall be concurrently charged to
account 63-60-00, ``Uncollectible Accounts; General and
administrative.''
(b) Allowances for receivables not applicable to transportation
operations. Credits to this subdivision shall be concurrently charged to
account 553, ``Uncollectable accounts.''
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
710 Working funds.
This account shall include amounts advanced to general and special
agents, and to other officers and employees, as working funds from which
certain expenditures are to be made and accounted for. It also includes
advances to fast freight lines and to demurrage and other bureaus.
Note: Advances to jointly owned or used terminal companies and other
companies for permanent working funds or capital purposes shall be
included in accounts 721, ``Investments and advances; Affiliated
companies,'' or 722, ``Other investments and advances,'' as appropriate.
711 Prepayments.
This account shall include the balances in the accounts representing
short-term prepaid rents chargeable to the appropriate rent accounts as
the term is consumed for which the rents are paid; also short-term
interest, and insurance premiums, taxes and licenses, and similar items
paid in advance of their accrual, which are to be apportioned and
charged, as they accrue, to the appropriate accounts.
712 Material and supplies.
(a) This account shall include the balances representing the cost of
all unapplied material, such as road and shop material, articles in
process of manufacture by the accounting company, fuel, stationery, and
dining car and other supplies. In determining the cost of material and
supplies suitable
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allowance shall be made for any purchase discounts allowed. The cost
shall include all specifically assignable transportation charges
incurred in obtaining the delivery of such materials and supplies upon
the premises of the carrier including loading and unloading, and a
suitable proportion of purchasing and store expenses. The cost shall
also include sales and excise taxes on material purchases; however,
sales and excise taxes may be charged to account 65-60-00, ``Other
taxes; General and administrative,'' provided this procedure will not
adversely affect the accounts and is consistently followed. Taxes on
gasoline, other motor fuel, and motor oil are also includible in this
account.
(b) Materials recovered for reuse in connection with construction,
maintenance, or the retirement of property shall be charged to this
account at cost, or average cost, estimated if not known, less
accumulated depreciation, if any, plus the cost to restore the materials
to a serviceable condition, or current market value, whichever is lower.
(See definition 31, Salvage value.)
(c) Scrap and other nonusable materials, including obsolete parts,
shall be included in account 713, ``Other current assets,'' at the
estimated salvage value when the sale of the materials is imminent and
there is a relatively firm market price. Obsolete parts not subject to
imminent sale shall be included in account 741, ``Other assets,'' at
their net realizable value.
(d) Material and supplies shall be credited to this account and
charged to the appropriate operating expense or other account on the
basis of recorded cost, average cost, or other recognized pricing
system, provided that such system is consistently applied and is based
on the cost of such material and supplies.
(e) An inventory of material and supplies shall be taken during each
calendar year and the necessary adjustments to bring this account into
harmony with the actual inventory balances shall be made in the accounts
of the year in which the inventories are taken. In effecting this
adjustment, determined differences in accounting for important classes
of material shall be equitably assigned among the accounts to which the
classes of material are ordinarily chargeable. Other differences shall
be equitably apportioned among the primary accounts to which material
has been charged since the last inventory. (Also see instruction 5-
1(b).)
Note: Balances representing the cost of unapplied construction
material and supplies located at the point of use, which have been
purchased for projected new roads and extensions, or for new railroad
equipment, shall be included in account 90, ``Construction in
progress.''
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
713 Other current assets.
This account shall include amounts for other current assets which
are not includible in the foregoing current asset accounts.
714 Deferred income tax debits.
This account shall include the current portion of deferred income
tax debits and credits determined in accordance with Instruction 1-10,
when the balance is a net debit. A net credit balance shall be included
in account 762, ``Deferred income tax credits''.
(49 U.S.C. 10321, 11145; 5 U.S.C. 553)
[47 FR 12350, Mar. 23, 1982]
Special Funds
715 Sinking funds.
(a) This account shall include the amount of cash, the ledger value
of live securities of other companies, and other assets which are held
by trustees of sinking and other funds for the purpose of redeeming
outstanding obligations, including such assets held in the hands of the
accounting company's treasurer when the assets are segregated in a
distinct fund.
(b) This account shall include amounts deposited with trustees on
account of mortgaged property sold, where the proceeds are held for the
redemption of securities; and also the par value (or the amount recorded
for no par stock) of live securities issued or assumed by the accounting
company and held in such funds.
(c) A separate subaccount shall be kept for each fund. The title of
each subaccount shall designate the obligation redeemable from the fund.
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Note: In stating the balance sheet in the annual reports to the
Board the total amount of the funds and the par value (or the amount
recorded for no par stock) of securities issued or assumed by the
accounting company and held in the funds shall be shown in the short
columns, and the net amount of the funds (total amount less securities
issued or assumed) shall be shown in the long column.
716 Capital funds.
(a) This account shall include cash and the ledger value of other
assets held by trustees or by the accounting company's treasurer when
segregated in distinct funds that have been (1) realized from the sale
of equipment obligations or other long-term obligations and not yet
applied toward the specific purposes for which the obligations were
incurred, and (2) set aside in accordance with governmental, mortgage,
or contractual requirements in connection with reorganizations or
otherwise. This account shall also include funds deposited with trustees
to be held until mortgaged property sold is replaced.
(b) An appropriate record shall be maintained for securities issued
or assumed by the accounting company and held in the funds, identifying
those that are nominally issued or nominally outstanding.
Note: Funds specifically set aside for sinking fund purposes shall
be included in account 715, ``Sinking funds.'' If one purpose of a
capital fund is to provide contributions to a sinking fund under
specified conditions, the entire amount of the fund shall be included in
this account until the contributions to the sinking fund are made, at
which time the amounts thereof shall be transferred to account 715.
Note: The ledger value of assets of the character indicated in
paragraph (a)(2) of this section, shall be transferred to the
appropriate current asset account when the assets are definitely
assigned in advance of expenditure to the payment of interest or other
current liabilities payable within one year.
717 Other funds.
This account shall include the amount of cash and the ledger value
of securities of other companies and other assets which are in the hands
of trustees or managers of insurance, employees' pension, savings,
relief, hospital, and other funds which have been raised and
specifically set aside or invested for specific purposes not provided
for elsewhere; also the par value (or the amount recorded for no par
stock) of securities issued or assumed by the accounting company and
held in such funds. A separate subaccount shall be kept for each fund.
Note A: Sinking funds and capital funds are provided for in accounts
715, ``Sinking funds,'' and 716, ``Capital funds,'' respectively.
Note B: In stating the balance sheet in the annual reports to the
Board, the total amount of the funds and the par value (or the amount
recorded for no par stock) of securities issued or assumed by the
accounting company and held in the funds shall be shown in the short
columns, and the net amount of the funds (total amount less securities
issued or assumed) shall be shown in the long column.
Note C: This account shall not include funds held by the accounting
company solely as trustee and in which it has no beneficial interest.
Note D: This account shall include compensating balances (see
definition 10) under an agreement which legally restricts the use of
such funds and which constitute support for long-term borrowing
arrangements.
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
Investments
721 Investments and advances; affiliated companies.
(a) This account shall include the ledger value of the accounting
company's investment in securities issued or assumed by affiliated
companies other than securities held in special deposits or special
funds; and also investment advances made to affiliated companies not
subject to current settlement; notes receivable from affiliated
companies which mature later than 1 year from date of the balance sheet;
and similar noncurrent items of affiliated companies.
(b) This account shall be maintained in such manner as to show each
of the following classes of investment in each affiliated company:
(1) Stocks.
(2) Bonds.
(3) Other secured obligations.
(4) Unsecured notes.
(5) Investment advances.
(c) A complete record of securities pledged shall be maintained to
show
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separately the ledger value of securities pledged and unpledged in the
annual report to the Board.
Note A: Accounts with affiliated companies which are subject to
current settlement, if their collection is reasonably assured, shall be
classed as current assets, and if settlement is deferred beyond one year
such items shall be transferred to this account.
Note B: The term affiliated companies (also see definition 5(a))
includes:
1. Controlled companies, including companies solely controlled by
the accounting company, and also companies jointly controlled by the
accounting company and others under a joint arrangement.
2. Controlling companies, including both companies solely
controlling the accounting company, and companies which jointly control
the accounting company under a joint arrangement.
3. Companies controlled by controlled companies.
4. Companies controlled by controlling companies.
By control (also see definition 5(a)) is meant the ability to determine
the action of a corporation. For the purposes of this account, the
following are to be considered forms of control:
(a) Right through title to securities issued or assumed to exercise
the major part of the voting power in the controlled corporation.
(b) Right through agreement or source other than title to
securities, to name the majority of the board of directors, managers, or
trustees of the controlled corporation.
(c) Right to foreclose a first lien upon all or a major part in
value of the tangible property of the controlled corporation.
(d) Right to secure control because of advances made for
construction of the operating property of the controlled corporation.
(e) Right to control only in a specific respect the action of the
controlled corporation.
A leasehold interest in the property of a corporation is not considered
a form of control over the lessor corporation.
Sole control is that which rests in one corporation.
Joint control is that which rests in two or more corporations and
which is held under a joint arrangement.
Note C: The value of securities borrowed by the accounting company
and pledged shall not be included in this account. A memorandum record
shall be kept.
Note D: The value of securities pledged for purposes other than that
of security for funded debt or short-term loans shall be included in
accounts 715, ``Sinking funds,'' 716, ``Capital funds,'' or 717, ``Other
funds,'' as appropriate.
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
721.5 Adjustments; investments and advances--affiliated companies.
(a) This account shall be credited with amounts charged to account
551, ``Miscellaneous income charges,'' to provide for impairment in the
value of investment securities and other assets included in account 721,
``Investments and advances; affiliated companies.''
(b) If provision is made for anticipated losses in specific assets,
when the assets are written down or written off, or are sold or
otherwise disposed of at a loss, the reduction in the book value or the
losses sustained shall be charged to this account to the extent of the
credit balance in the account applicable to the particular items
involved, and the remainder, if any, shall be charged to account 551,
``Miscellaneous income charges.'' Where a general provision for losses
in unspecified asset values is maintained, all such losses resulting
from write-downs, write-offs, etc., shall be charged to this account to
the extent of the total credit balance in the account, and the
remainder, if any, shall be charged to account 551, ``Miscellaneous
income charges.''
722 Other investments and advances.
(a) This account shall include the ledger value of the accounting
company's investment in securities issued or assumed by nonaffliated
companies other than securities held in special deposits or special
funds; and also investment advances made to nonaffiliated companies not
subject to current settlement; notes receivable from nonaffiliated
companies which mature later than 1 year from date of the balance sheet;
and similar noncurrent items of nonaffiliated companies.
(b) This account shall be maintained in such manner as to show each
of the following classes of investment in each nonaffiliated company:
(1) Stocks.
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(2) Bonds.
(3) Other secured obligations.
(4) Unsecured notes.
(5) Investment advances.
(c) A complete record of securities pledged shall be maintained to
show separately the ledger value of securities pledged and unpledged in
the annual report to the Board.
Note A: Accounts with nonaffiliated companies which are subject to
current settlement, if their collection is reasonably assured, shall be
classed as current assets, and if settlement is deferred beyond one year
such items shall be transferred to account 741, ``Other assets.''
Note B: The term nonaffiliated companies includes all companies
other than those defined as affiliated in note B of account 721,
``Investments and advances: Affiliated companies.''
Note C: The value of securities borrowed by the accounting company
and pledged shall not be included in this account. A memorandum record
shall be kept.
Note D: The value of securities pledged for purposes other than that
of security for funded debt or short-term loans shall be included in
accounts 715, ``Sinking funds,'' 716, ``Capital funds,'' or 717, ``Other
funds,'' as appropriate.
723 Adjustments; other investments and advances.
(a) This account shall be credited with amounts charged to account
551, ``Miscellaneous income charges,'' to provide for impairment in the
value of investment securities and other assets included in account 722,
``Other investments and advances.''
(b) If provision is made for anticipated losses in specific assets,
when the assets are written down or written off, or are sold or
otherwise disposed of at a loss, the reduction in the book value or the
losses sustained shall be charged to this account to the extent of the
credit balance in the account applicable to the particular items
involved, and the remainder, if any, shall be charged to account 551.
``Miscellaneous income charges.'' Where a general provision for losses
in unspecified asset values is maintained, all such losses resulting
from write-down, write-offs, etc., shall be charged to this account to
the extent of the total credit balance in the account, and the
remainder, if any shall be charged to account 551, ``Miscellaneous
income charges.''
724 Allowance for net unrealized loss on noncurrent marketable equity
securities--Cr.
This account shall reflect the amount by which aggregate cost
exceeds market value for the noncurrent marketable equity securities
found in accounts 721 and 722. This account shall be debited or credited
so that the balance at the balance sheet date shall reflect such
difference. (Refer to instruction 5-2.)
This account shall not include amounts by which aggregate cost exceeds
market value if such differences are judged to be other than temporary.
(Such differences should be charged to account 723.)
Tangible Property
731 Road and equipment property.
This account shall include the accounting company's investment in
road and equipment (including that held under contract for purchase),
used or held for use as transportation property in existence at the date
of the balance sheet. When property is retired from service, this
account shall be credited with the ledger value of the property retired.
Note A: This account shall not include any items representing titles
to securities.
Note B: When equipment or other property is acquired under an
agreement which provides that the cost shall be paid in installments,
the cost (its money value at time of purchase) shall be charged to the
appropriate road and equipment accounts at the time the equipment is
delivered to the carrier, and included in this account in the same
manner as the cost of equipment purchased outright. When the par value
of notes or other securities issued in payment, or in part payment, for
such equipment is more (or less) than the actual cash value of the
equipment at the time of the purchase, or of the proportion to which the
securities are applicable, the difference between the par value of the
securities and the actual cash value of the equipment, or of the
proportion paid for by the securities, shall be charged (or credited) to
the proper discount and premium accounts.
Note C: Held for use, as referred to above, implies the ability of
the carrier to substantiate within a reasonable period of time, by plan
or policy, the probable future use which is to be made of the property.
[[Page 116]]
732 Improvements on leased property.
(a) This account shall include the cost of improvements made by the
lessee to property which is held under lease from others or through
control of the company owning the property, where such improvements are
used by the lessee in transportation service, and the lessee is not to
be reimbursed by the lessor for such improvements. (See instruction 2-
18.)
(b) The carrier's records shall be kept in such manner as to show
the debits and credits to this account in accordance with the provisions
for road and equipment.
Note A: This account shall not include any itmes representing titles
to securities.
Note B: When the lessor company includes in account 731, ``Road and
equipment property,'' the cost of improvements made by the lessee to
property, leased by it from the lessor and settlement is not made at the
time for the cost thereof, the lessee, pending settlement with the
lessor, shall include the cost thereof in account 721, ``Investments and
advances; Affiliated companies,'' or 722, ``Other investments and
advances,'' as appropriate.
733 Accumulated depreciation; improvements on leased property.
(a) This account shall be credited with amounts concurrently charged
to operating expenses or other authorized accounts for depreciation
accrued on improvements to leased property, the cost of which is
included in account 732, ``Improvements on leased property.''
(b) The service value of each unit of property retired (and also of
each minor item, less than a unit, retired and not replaced) for which
this accumulated depreciation account has been established shall be
charged to this account.
(c) Instructions for depreciation accounts, rates of depreciation,
and records to be maintained, as contained in instruction 4 for owned
property, shall also apply to improvements on leased property.
734 Accumulated amortization; improvements on leased property--defense
projects.
This account shall include the amounts of accumulated past
provisions for amortization of improvements to leased property
applicable to defense projects, the cost of which is included in account
732, ``Improvements on leased property.'' This account shall be charged
with the amount of the credit balance applicable to specific property at
the time the property is retired. The accounting company shall maintain
separate subaccounts for amortization of (1) road property and (2)
equipment.
735 Accumulated depreciation; road and equipment property.
(a) This account shall be credited with amounts concurrently charged
to operating expenses or other authorized accounts to cover the loss in
service value of depreciable road and equipment property. It shall also
include adjustments which the Board may authorize the accounting company
to make such as adjustments for past accruals of depreciation, and
provision for material abandonment or other losses applicable to
nondepreciable property.
(b) The service value of each unit of depreciable property retired
(and also of each minor item, less than a unit, retired and not
replaced) shall be charged to this account. This account shall also be
charged for amounts for losses applicable to nondepreciable property
retired for which provision was previously made by approval of the
Board, and any resultant adjustment of such provision shall be referred
to the Board for consideration and decision.
(c) Comprehensive instructions pertaining to depreciation accounts,
rates of depreciation, and records to be maintained, are contained in
instruction 4.
736 Accumulated amortization; road and equipment property--defense
project.
This account shall include the amount of accumulated past provisions
for amortization of road and equipment defense projects, the cost of
which is included in account 731, ``Road and equipment property.'' This
account shall be charged with the amount of the credit balance
applicable to specific property at the time the property is retired. The
accounting company shall maintain separate subaccounts
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for amortization of (1) road property and (2) equipment.
737 Property used in other than carrier operations.
This account shall include the accounting company's investment in
property other than property assignable to accounts 731, ``Road and
equipment property,'' and 732, ``Improvements on leased property,'' such
as hotels, restaurants, powerplants, which are not operated by the
accounting company or another carrier in connection with its
transportation service.
Items of Investment
Coal and other mines.
Commercial power plants.
Hotels and restaurants.
Lands and buildings not used in transportation operations.
Lands and other property acquired and held in anticipation of future
use.
Mineral and timber lands.
Rails and other track material leased to others.
Saw mills and other manufacturing plants not operated in connection with
transportation service.
738 Accumulated depreciation; property used in other than carrier
operations.
This account shall be credited with amounts charged to income or
other authorized accounts for depreciation accrued on property, the cost
of which is included in account 737, ``Property used in other than
carrier operations.'' When such property is destroyed, sold, or
otherwise retired from service, this account shall be charged with the
amount of the credit balance applicable to the property retired.
Intangible Property
739 Organization expenses.
This account shall include all fees paid to governments for the
privilege of incorporation, and office and other expenditures incident
to organizing the corporation and putting it in readiness to do
business; cost of preparing and distributing prospectuses; special
counsel fees; cost of preparing and issuing certificates of stock; cost
of procuring the necessary certificates from State authorities; and
other like costs necessary and proper in organizing the enterprise.
Note: Cost of soliciting for loans or for the sale of bonds or other
evidences of indebtedness shall be charged to balance sheet account 743,
``Other deferred debits.'' (See instruction 5-3.)
Other Assets and Deferred Debits
741 Other assets.
This account shall include the estimated value of salvage
recoverable from property retired when the recovery of the salvage is
deferred for any reason. (See instruction 2-5 and 2-7.) This account
shall also include the estimated realizable amount for other assets of
doubtful value, collection of which within one year is not assured; also
other deferred assets and miscellaneous assets not otherwise provided
for in general balance sheet accounts. (See instruction 5-1.)
743 Other deferred debits.
(a) This account shall include the amount of debit balances in
suspense accounts that cannot be cleared and disposed of until
additional information is received, such as frieght claims paid when
found to be correct, but in advance of investigation with other
carriers; unextinguished discount on short-term notes; unadjusted debit
items not otherwise provided for and similar items the proper
disposition of which is uncertain
(b) This account shall also include the aggregate amount of the
expenses incurred in connection with the issuance of each class of the
carrier's outstanding long-term or equipment obligations, such as fees
for listing long-term obligations on stock exchanges, legal and other
fees, cost of tax stamps and similar items. (See account 14.) Separate
subdivisions shall be maintained for each issue of such obligations.
(See instruction 5-3.)
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
744 Accumulated deferred income tax debits.
This account shall include the amount of deferred noncurrent income
tax debits and credits determined in accordance with Instruction 1-10
when
[[Page 118]]
the balance is a net debit. A net credit balance shall be included in
account 786, ``Accumulated deferred income tax credits''.
(49 U.S.C. 10321, 11145; 5 U.S.C. 553)
[47 FR 12350, Mar. 23, 1982]
Liabilities and Shareholders' Equity--Table of Contents
Current Liabilities
751 Loans and notes payable.
(a) This account shall include the balances representing obligations
outstanding in the form of loans and notes payable or other similar
evidence (except interest coupons) of indebtedness payable on demand or
within a time not exceeding one year from date of issue.
(b) This account shall be kept in such form so as to show separately
the amounts of notes payable within one year from date of issue that are
secured by collateral.
Note A: Loans and notes payable to affiliated companies which are
subject to current settlement shall be included in account 757,
``Payables to affiliated companies,'' and noncurrent obligations in
account 769, ``Accounts payable; Affiliated companies.''
Note B: This account shall not include obligations due within one
year which are intended to be refinanced on a long-term basis. Long-term
refinancing of short-term obligations means: (1) Replacement with long-
term obligations or equity securities, or (2) renewal, extension, or
replacement with short-term obligations for an uninterrupted period
extending beyond one year from the balance sheet date.
The intention to refinance on a long-term basis shall be supported
by the ability to refinance. Evidence of this ability includes either:
(1) The actual issuance of an obligation, after the balance sheet date
but before the balance sheet is issued, or (2) before the balance sheet
is issued, the existence of a financing agreement which is long-term and
based on terms readily determinable with no existing violations of its
provisions, and with a lender which is financially capable of honoring
the agreement.
752 Accounts payable; interline and other balances.
This account shall include the net credit balances payable to other
companies representing items such as interline freight, passenger,
switching and baggage revenues, charges for equipment interchanged on a
per diem or mileage basis, and charges for car repairs, loss and damage
freight claims, and overcharge claims.
Note: The amount to be entered in this account is not the net
balance between this account and account 705, ``Accounts receivable;
Interline and other balances.'' Net debit balances receivable from other
companies shall be included in account 705.
753 Audited accounts and wages payable.
This account shall include the amount of audited vouchers or
accounts and audited payrolls unpaid on the date of the balance sheet.
It shall include balances representing unclaimed wages and outstanding
pay and time or discharge checks issued in payment of wages and all
other unpaid vouchered items.
Note: The amount of checks and drafts, which have been transmitted
to payees and which remain unpaid at the close of the accounting period,
shall be credited to account 701, ``Cash.''
754 Accounts payable; other.
This account shall include outstanding drafts drawn by station
agents, conductors' refund and extra-fare checks not presented for
redemption, taxes collected from employees and others for the account of
taxing agencies, and other items of the nature of demand liabilities not
covered by accounts 751, 752, 753, 755, 756, and 757.
Note A: The amount to be reported under this account is not the net
balance between this account and account 707, ``Accounts receivable;
Other.''
Note B: The amount of checks and drafts, which have been transmitted
to payees and which remain unpaid at the close of the accounting period,
shall be credited to account 701, ``Cash.'' When the amount of such
checks and drafts cannot be determined with absolute accuracy an
estimate of the amount shall be used.
Note C: Deposits and other items of affiliated companies subject to
current settlement shall be included in account 757, ``Payables to
affiliated companies.''
755 Interest payable.
This account shall include the amount of matured and unpaid interest
on funded debt, and other obligations of the accounting company for
which provision has been made for current
[[Page 119]]
settlement. This account shall also include the amount of interest
subject to current settlement accrued to the date of the balance sheet,
but payable after that date, on obligations of the accounting company.
Note: Interest payable on debt to affiliated companies, if subject
to current settlement, shall be included in account 757, ``Payables to
affiliated companies.'' Noncurrent interest shall be included in account
769, ``Accounts payable; Affiliated companies.'' Interest payable to
others which is not paid when it matures shall be included in account
781. ``Interest in default,'' if not subject to current settlement.
Where interest is in default, subsequent accruals shall be credited
directly to account 781.
756 Dividends payable.
This account shall include the amount of dividends payable on
capital stock but unpaid, at the date of the balance sheet.
Note: Dividends payable to affiliated companies shall be included in
account 757, ``Payables to affiliated companies.''
757 Payables to affiliated companies.
This account shall include amounts payable to affiliated companies
which are subject to current settlement such as deposits, demand or time
loans, notes payable, interest, dividends, miscellaneous bills, and
similar items.
Note: Payables to affiliated companies, representing net credit
balances for items such as revenues, charges for equipment interchanged,
car repairs and claims, shall not be included in this account but in
account 752, ``Accounts payable; Interline and other balances.''
759 Accrued accounts payable.
This account shall include estimates of unaudited items payable by
the carrier to the date of the balance sheet, including those which are
chargeable to revenue, expense, or income accounts. Among the items
which should be included in this account are:
Rents payable.
Amounts payable to others for unreported interline traffic.
Amounts payable to others for use of facilities, including equipment,
for which bills have not been rendered.
Amounts payable to others for services for which bills have not been
rendered.
Estimated amounts payable within one year covering liability for claims
for injuries to persons, loss and damage, and similar items.
Amounts payable (estimated if necessary) within one year pursuant to
agreements with labor organizations or otherwise for employees vacations
now earned.
760 Federal income taxes accrued.
This account shall be credited with the amount accrued for Federal
income taxes which has been concurrently charged to the appropriate
income or other authorized accounts. Credits to this account that are
based upon estimates shall be adjusted during the year so that this
account may show, as nearly as practicable the approximate amount of the
carrier's unpaid liability for such taxes. Payments of taxes for which
accruals have been made shall be debited to this account.
761 State and other income taxes accrued.
This account shall be credited with the amounts accrued for state
and other income taxes which have been concurrently charged to the
appropriate income or other authorized accounts. Credits to this account
that are based upon estimates shall be adjusted during the year so that
this account may show, as nearly as practicable, the approximate amount
of the carrier's unpaid liability for such taxes. Payments of taxes for
which accruals have been made shall be debited to this account.
761.5 Other taxes accrued.
(a) This account shall be credited with the accruals of all taxes,
other than income taxes, which have been concurrently charged to the
appropriate income or other accounts for taxes. Such accruals may be
based upon estimates, provided such estimates shall be adjusted during
the year so that this account may show, as nearly as practicable, the
approximate amount of the carrier's unpaid liability for such taxes.
Payments of taxes for which accruals have been made shall be debited to
this account.
(b) The records supporting the entries in this account shall be kept
to show separately by classes of taxes the amount of the tax accruals
for the current year and adjustments of accruals for prior years.
[[Page 120]]
Note: Amounts for prepayments of taxes shall be included in account
711, ``Prepayments.''
762 Deferred income tax credits.
This account shall include the current portion of deferred income
tax charges and credits determined in accordance with Instruction 1-10
when the balance is a net credit. A net debit balance shall be included
in account 714, ``Deferred income tax debits''.
(49 U.S.C. 10321, 11145; 5 U.S.C. 553)
[47 FR 12350, Mar. 23, 1982]
763 Other current liabilities.
There shall be included in this account the principal amount of
unpresented bonds drawn for redemption through the operation of sinking
and redemption fund agreements, also the principal amount of unpresented
fund debt obligations, and receivers' and trustees' securities which
have matured (for which provision has been made for current settlement),
and other current liabilities not includible in the foregoing current
liability accounts.
764 Equipment obligations and other long-term debt due within one year.
This account shall include the total amount of bonds, equipment
obligations, and other long-term debt, including obligations maturing
serially or payable in installments which are due and payable within one
year, and for which arrangements for long-term refinancing have not been
made (See note B to account 751, ``Loans and notes payable'') or for
which no sinking funds have been provided. This account shall be
subdivided according to the different classes of debt.
Long-Term Debt Due After One Year
765 Funded debt unmatured.
(a) This account shall include the total par value of unmatured debt
(other than equipment obligations), maturing more than one year from the
close of the accounting period, including obligations due within one
year which are expected to be refinanced on a long-term basis (see note
B to account 751, ``Loans and notes payable''), whether the securities
were issued by the accounting company or the payment was assumed by the
accounting company after being issued as the debt of other companies.
(See account 764, ``Equipment obligations and other long-term debt due
within one year.'')
(b) The amounts included in this account shall be divided to show
the par value of (1) certificates or other evidences of funded debt
(pledged and unpledged) held in the company's treasury, by its agents or
trustees, or otherwise subject to its control, including both those
reacquired after actual issue and those nominally but never actually
issued; and (2) certificates or other evidences of funded debt issued
and actually outstanding, being those not held by the company, its
agents or trustees, or subject to its control.
(c) The amounts included herein shall be further divided so as to
show the amount of each class of funded debt, as follows:
(1) Mortgage bonds. Bonds secured by lien on physical property and
not includible in the other subdivisions of this account.
(2) Collateral trust bonds. Bonds and notes secured by a lien on
securities or other negotiable paper; and stock trust certificates that
are similar in character to collateral trust bonds.
(3) Income bonds. Bonds which are a lien on a carrier's revenue
alone, or bonds which, while being a lien on its property and
franchises, can claim payment of interest only in case interest is
earned.
(4) Miscellaneous obligations. All funded obligations not provided
for by the other subdivisions of this account, also notes, unsecured
certificates of indebtedness, debenture bond, plain bonds, real estate
mortgages executed or assumed and other similar obligations maturing
more than one year from date of issue, but excluding liabilities for
assessments for public improvements and those evidenced by conditional
or deferred equipment purchase contracts for which provision is made in
accounts 782, ``Other liabilities,'' and 766, ``Equipment obligations,''
respectively.
(5) Receipts outstanding for funded debt. Receipts for payments on
account of funded debt. When certificates are issued for such payments,
the par value
[[Page 121]]
shall be included in the account covering the class of funded debt for
which the certificates are issued.
(d) Each of the above classes shall also be divided into subclasses
according to differences in mortgage or other lien or security therefor,
rate of interest, interest dates, or date of maturity. Parts of any
issue agreeing in other characteristics but maturing serially may be
treated as of the same subclass.
(e) Records shall be maintained in such manner as to show (1)
securities the issuance or assumption of which has been authorized by
the Board under provisions of the Interstate Commerce Act, and similar
securities issued or assumed prior to the effective date of such
provisions of the Act, and (2) other obligations of a kind which may
legally be issued or assumed without such authorization.
Note A: Securities (other than equipment obligations) maturing one
year or less from date of issue shall be included in accounts 757,
``Payables to affiliated companies,'' 769, ``Accounts payable;
Affiliated companies,'' or 751, ``Loans and notes payable,'' as
appropriate, except that where an issue of securities maturing serially
over a period of years contains short-term obligations such obligations
may be included as funded debt. Mature funded debt shall be included in
account 763, ``Other current liabilities,'' if provision has been made
for current settlement. If no provision has been made for current
settlement, matured funded debt shall be included in account 768, ``Debt
in default,'' except that when the collection of matured funded debt of
affiliated companies is not enforced by controlling companies, the
principal amount (to the extent held by a controlling company) shall be
included in account 769, ``Accounts payable; Affiliated companies.''
Note B: See definitions 3, actually issued; 4, actually outstanding;
25, nominally issued; and 26, nominally outstanding.
Note C: Nonnegotiable notes having a maturity of more than one year
after date of issue, held by affiliated companies, shall be included in
account 769, ``Accounts payable; Affiliated companies.''
Note D: Securities nominally issued or reacquired and held in the
company's treasury, except securities held by trustees in sinking or
other funds, shall be included in a subdivision of this account. In the
general balance sheet statement the total unmatured funded debt included
in this account shall be shown in the first short column. The amount
nominally but not actually issued and the amount nominally outstanding
shall be shown in the second short column, and in the long column shall
be shown the amount actually outstanding.
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
766 Equipment obligations.
(a) This account shall include the par value of equipment securities
and the principal amount of contractual obligations for the purchase of
equipment, excluding principal or obligations maturing serially or
payable in installments within one year from the close of the accounting
period, and including obligations due within one year which are expected
to be refinanced on a long-term basis (see account 764, ``Equipment
obligations and other long-term debt due within one year''); for
explanation of long-term refinancing, see note B to account 751, ``Loans
and notes payable.''
(b) The amounts included herein shall be divided as follows:
(1) Principal amount of equipment securities including those
maturing serially, issued or assumed by the accounting company or by
receivers and trustees, which have been authorized by the Board under
provisions of the Interstate Commerce Act and similar securities issued
or assumed prior to the effective date of such provisions of the act.
(2) Principal sums of obligations for equipment purchased under
conditional or deferred payment contracts, which may be legally entered
into or assumed by the accounting company or by receivers and trustees,
without authorization by the Board.
766.5 Capitalized lease obligations.
(a) Long-term leases which are clearly in substance installment
purchases shall be capitalized. The liability under such leases which
have been capitalized in fixed asset accounts shall be recorded in this
account. (See instruction 2-20.)
(b) This account shall be kept so as to show the liability under
each lease obligation.
Note A: The portion of the liability for long-term leases which is
payable within 1 year of the close of the accounting period is
includible in account 764, Equipment obligations and other long-term
debt due within one year.
[[Page 122]]
Note B: Leases which merely state the right to use property and a
related obligation to pay specific rents over a definite future period
shall not be considered to be assets and liabilities.
(49 U.S.C. 12, 20, 304, 913 and 1012)
[42 FR 56611, Oct. 27, 1977]
767 Receivers' and trustees' securities.
When receivers or trustees acting under the orders of a court are in
possession of the property of the company, and under the order of such
court issue or assume evidences of indebtedness (other than equipment
securities or obligations) the par value of such evidences shall be
credited to this account.
Note: The par value of equipment securities or the principal amount
of obligations incurred for the purchase of equipment under conditional
or deferred payment contracts shall be included in account 766,
``Equipment obligations.''
768 Debt in default.
This account shall include amounts transferred from other accounts
representing matured funded securities or obligations, receivers' and
trustees' securities, equipment obligations and short-term notes, when
maturity dates of such obligations have not been extended
Note A: The principle amount of matured funded debt of affiliated
companies the collection of which is not enforced by the controlling
company shall (to the extent of the principal amount held by the
controlling company) be included in account 769, ``Accounts payable;
Affiliated companies.''
Note B: The principal amount unpresented funded debt obligations
which have matured, and for which provision has been made for payment
shall be included in account 763, ``Other current liabilities.''
769 Accounts payable; affiliated companies.
This account shall include the par value of nonnegotiable notes
issued to affiliated companies; also matured funded debt of affiliated
companies held by controlling companies where there is no agreement for
an extension as to time of payment and collection of the principal is
not enforced; credit balances in open accounts with such companies other
than credit balances classable as current liablilities, and interest
accrued on notes, matured funded debt of affiliated companies and open
accounts included in this account, when such interest is not subject to
current settlements. The amounts included herein shall be divided as
follows:
(a) Notes, including not only nonnegotiable notes that run longer
than a term of one year, but also such notes payable on demand or within
one year from the date of issue when it is mutually agreed that the
notes shall not be enforced as current assets by the holder.
(b) Par value of matured funded debt of affiliated companies held by
controlling companies where there is no agreement for an extension of
time and collection is not enforced.
(c) Open accounts not subject to current settlement.
(d) Interest accrued on amounts included in this account when not
subject to current settlement.
Note A: Accounts with affiliated companies which are subject to
current settlement shall be classed as current assets or current
liabilities, as appropriate.
Note B: No item shall be included in this account which is not known
to be the property of an affiliated company.
Note C: The term affiliated companies includes:
1. Controlled companies, including companies solely controlled by
the accounting company, and also companies jointly controlled by the
accounting company and others under a joint arrangement. (See definition
4.)
2. Controlling companies, including both companies solely
controlling the accounting company, and companies which jointly control
the accounting company under a joint arrangement.
3. Companies controlled by controlled companies.
4. Companies controlled by controlling companies.
By control (See definition 8) is meant the ability to determine the
action of a corporation. For the purposes of this account, the following
are to be considered forms of control:
(a) Right through title to securities issued or assumed to exercise
the major part of the voting power in the controlled corporation.
(b) Right through agreement of some character or through some source
other than title to securities, to name the majority of the board of
directors, managers, or trustees of the controlled corporation.
[[Page 123]]
(c) Right to foreclose a first lien upon all or a major part in
value of the tangible property of the controlled corporation.
(d) Right to secure control in consequence of advances made for
construction of the operating property of the controlled corporation.
(e) Right to control only in a specific respect the action of the
controlled corporation.
A leasehold interest in the property of a corporation is not to be
classed as a form of control over the lessor corporation.
Sole control is that which rests in one corporation.
Joint control is that which rests in two or more corporations and
which is held under a joint arrangement.
770.1 Unamortized debt discount.
This account shall include the total of the net debit balances
representing the excess of the discount over the premimium in connection
with the issuance of each class of the carrier's outstanding long-term
or equipment obligations. Separate subdivisions shall be maintained for
each issue of such obligations. (See instruction 5-3.)
Note A: Issue costs related to long-term debt (debt expense) shall
be included in account 743, ``Other deferred debits.'' (See instruction
5-3.)
Note B: When long-term obligations are refinanced the balance of
debt discount and expense pertaining to the old obligations shall be
transferred to account 551, ``Miscellaneous income charges.''
770.2 Unamortized premium on debt.
This account shall include the total of all credit balances
representing the excess of the premium over the discount and expenses in
connection with the issuance of each class of the carrier's outstanding
long-term or equipment obligations. Separate subdivisions shall be
maintained for each issue of obligations. (See instruction 5-3.)
Other Long-Term Liabilities
771 Accrued liability; pension and welfare.
(a) This account shall include the credit balances accrued
representing the estimated liability of the carrier for amounts provided
by charges to operating expenses, including amounts contributed by
employees, irrespective of whether carried in special funds or in
general funds of the carrier, for pensions, accident and death benefits,
savings, relief, hospital, or other provident purposes.
(b) The carrier may use the ``full accrual basis'' to account for
pension costs upon prior approval of the Board. Full accrual basis as
used herein means recording in the accounts now and hereafter costs of
employees pensions accrued, including credits for past services, upon
the basis of actuarial computations, even though the sum has not been
funded by payment to the trustees. Applications for such accounting
shall show the method of computation, together with the carrier's
proposal for recording in the accounts the related income tax credits to
be realized in subsequent years.
(c) This account shall be charged when payments are made to retired
employees, or disbursements are made for the purposes for which
liability was provided.
(d) Separate subaccounts shall be maintained to show the amount
provided for each liability and the nature of and amounts of debits and
credits to the subaccounts.
772 Accrued liability; leased property.
(a) This account shall be credited with amounts concurrently charged
to operating expenses or other accounts to cover the accrued liability
on leased road and equipment when settlement between the accounting
carrier and the lessor is not made currently. The amounts recorded shall
include unsettled rent, based on depreciation or other factors, and
liability for property retired.
(b) This account shall be divided to show the liability to (1)
affiliated companies (See definition 4), and (2) others.
774 Accrued liability; casualty and other claims.
(a) This account shall be credited with the amounts charged to
operating expense to provide for estimated liabilities for claims for
deaths of or injuries to employees and others, and for damages to
property not owned or held under lease by the carrier; for claims for
loss, destruction, damage, or delays to property entrusted to the
carrier for transportation or storage; for revenue over charges, such as
those covered by
[[Page 124]]
reparation claims; and for similar items. No credits shall be made to
this account for amounts recoverable from insurance companies or others.
(b) Separate subaccounts shall be maintained to show the amount
provided for each liability and the nature of and amounts of debits and
credits to the subaccounts.
(c) If settlements for claims when audited are charged to this
account, the balances for each year shall be kept separately until all
items have been adjusted and cleared. If the settlements when audited
are charged to the appropriate expense accounts, the balance in this
account shall be adjusted through the expense accounts so as to reflect
the probable liability at the close of each accounting period for claims
which have been or may be filed for actuarial occurrences.
(d) Estimates of amounts payable within one year covering liability
for claims shall be transferred from this account to account 759,
``Accrued accounts payable.''
775 Other accrued liabilities.
(a) This account shall be credited with the amounts accrued for
estimated liabilities or losses provided by charges to operating expense
or income accounts which are not provided for in any of the preceding
accrued liability accounts.
(b) Separate subaccounts shall be maintained to show the amount
provided for each liability and the nature of and amounts of debits and
credits to the subaccounts.
(c) Upon accomplishment of the purpose for which each accrued
liability was provided in this account, any remaining balance in the
applicable subaccount shall be cleared to the appropriate operating
expense or other account. Prior Board approval shall be required for
clearance of balances in accrued liability subaccounts which were
originally established by authority of the Board.
(d) Estimates of amounts payable within one year covering any
liability included in this account shall be transferred to account 759,
``Accrued accounts payable.''
781 Interest in default.
This account shall include the amount of matured and unpaid interest
(for which no provision has been made for current settlement) on all
indebtedness issued or assumed by the accounting company except interest
which is added to the principal of the debt on which incurred. Where
interest is in default, subsequent accruals shall be credited to this
account.
Note: Interest matured and unpaid on debt to affiliated companies,
if not subject to current settlement, shall be included in account 769,
``Accounts payable; Affiliated companies.''
782 Other liabilities.
This account shall include assessments for public improvements;
retained amounts due governmental agencies for construction work;
percentages due contractors to be paid upon completion of contracts;
deposits for construction of side tracks to be refunded on basis of an
agreed portion of the earnings from the traffic handled over the tracks
and similar liabilities not payable within one year: This account shall
also include other deferred and noncurrent liabilities not otherwise
provided for in general balance sheet accounts. Assessments for public
improvements and amounts due governmental agencies and others for
payments to be made within one year, shall be included in account 763,
``Other current liabilities,'' or other appropriate current liability
account.
783 Deferred revenues--transfers from government authorities.
This account shall include amounts representing the cost of
acquisition, addition to, or improvement of depreciable operating
property received, or receivable from Federal, state, or local
authorities. Items to be included in this account shall be determined in
accordance with instruction 1-15.
An appropriate record shall be maintained of each asset associated
with these transfers showing: (1) Original cost to carrier (or fair
value if not purchased), (2) accumulated depreciation, and (3) estimated
salvage value, if any.
[[Page 125]]
This account shall be charged periodically, and account 503,
``Railway Operating Revenues--Amortization of Deferred Transfers from
Government Authorities,'' shall be credited with amounts equal to the
depreciation costs of the assets to which they apply. When such assets
are retired or otherwise disposed of, this account shall be charged, and
account 503 concurrently credited with any remaining associated amounts.
(See instruction 1-15.)
Note A: This account shall not include government transfers in the
form of, or designated for the purchase of land or other non-depreciable
property. Transfers of this type are includible in account 795, ``Other
Capital.''
Note B: This account shall not include transfers from the Federal
Government to either Amtrak or ConRail representing the cost of
depreciable and non-depreciable operating property.
(49 U.S.C. 304, 320)
[43 FR 30558, July 17, 1978]
Deferred Credits
784 Other deferred credits.
(a) This account shall include the amount of credit balances in
suspense accounts that cannot be disposed of until services are
performed or additional information is received, such as amounts
received from sale of mileage tickets, to be disposed of as mileage is
honored; amounts received from sales of excess baggage script, to be
disposed of as coupons are honored; interchangeable mileage credential
ticket redemption funds, amounts collected from the sale of damaged,
unclaimed, and over freight held pending final disposition, unadjusted
credit items not otherwise provided for; and similar items, the proper
disposition of which is uncertain.
786 Accumulated deferred income tax credits.
(a) This account shall be credited with the noncurrent portions of
deferred income tax debits and credits when the balance is a net credit,
as determined by Instruction 1-10. A net debit balance shall be included
in account 744, ``Accumulated deferred income tax debits''.
(b) This account shall be credited with the amount of investment tax
credits utilized in the current year for income tax purposes but
deferred for accounting purposes (see Instruction 1-10).
(c) This account shall be concurrently debited with amounts credited
to account 557, ``Provision for deferred taxes,'' representing
amortization of amounts for investment tax credits deferred in prior
accounting periods.
(d) This account shall be maintained in such a manner as to show
separately:
(1) the unamortized balance of deferred income taxes and deferred
investment tax credit separately as of the beginning and as of the end
of each year (2) the entries that affected the account balance, and (3)
the current year's net credits or charges applicable to timing
differences and deferred investment tax credits.
Note A: For definitions of income tax terminology see Definition 17.
Account 557, ``Provision for deferred taxes'', and account 591,
``Provision for deferred taxes--Extraordinary item,'' shall concurrently
be charged (credited) with the net effect of material timing effects.
Other related deferred income tax balance sheet accounts are:
Account 714, ``Deferred income tax debit.''
Account 744, ``Accumulated deferred income tax debits.''
Account 762, ``Deferred income tax credits.''
(49 U.S.C. 10321, 11145; 5 U.S.C. 553)
[47 FR 12350, Mar. 23, 1982, as amended at 67 FR 57533, Sept. 11, 2002]
Shareholders' Equity
791 Capital stock.
(a) This account shall include the par value of stocks with par
value; the stated value of no par stock having a stated value; and the
cash value of the consideration received or the amount approved by the
Board for no par stocks without stated value for all shares of capital
stock or other form of proprietary interest in the accounting company
which have been issued to bona fide purchasers and have not been
reacquired and canceled, also shares of stock nominally issued.
(b) This account also shall include amounts transferred from
retained earnings for no par stock without stated value when approved by
the Board.
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(c) The amount of the consideration received from the sale of par
value stock and no par stock having a stated value in excess of the
amount credited to this account shall be credited to account 794,
``Premiums and assessments on capital stock.''
(d) When capital stock is retired or canceled, this account shall be
charged with the amount at which such stock is carried in this account.
In the case of no par stock without stated value, the amount to be
charged shall be the proportion, applicable to the reacquired shares
immediately prior to reacquisition, of the total book liability included
herein of actually outstanding shares of the particular class and series
of stock of which the reacquired shares are a part.
(e) The amounts included in this account shall be recorded so as to
show (1) par value of shares of par value stock; the stated value of
shares of no par stock, and the amount paid in or approved by the Board
for no par stock without stated value (pledged or unpledged), held in
the company's treasury, by its agents or trustees, or otherwise subject
to its control, including shares nominally but never actually issued and
(2) par value of shares of par value stock, the stated value of shares
of no par stock, and the amount paid in or approved by the Board for
shares of no par stock without stated value, issued and actually
outstanding, being the shares not held by the company, its agents, or
trustees, or subject to its control.
(f) The amounts recorded shall be further divided so as to show the
amount of each class of stock issued, separated as between par value and
no par value stock, as follows:
(1) Common stock. Stocks which have no preference over other issues
of stock in distribution of dividends or of assets.
(2) Preferred stock. Stocks having preference over other issues of
stock in distribution of dividends or of assets.
(3) Debenture stock. Stock issued under a contract to pay a
specified return at specified intervals.
(4) Receipts outstanding for installments paid. Receipts for
payments on account of subscriptions to capital stock.
(g) When the subscriber has paid his subscription in full and is
entitled to receive certificates representing the shares for which he
has subscribed, the par value of stocks having par value, the stated
value of no par stock, or the agreed purchase price or the price
authorized by the Board for no par stock without stated value, as
appropriate, shall be included in the division for the class for which
the certificates are issued.
(h) Each of the above classes shall also be divided into subclasses
according to differences in dividend or interest rights, voting rights,
or conditions under which the securities may be retired.
Note A: When a general levy or assessment is made against the
holders of capital stock requiring the payment of any sum in addition to
the consideration agreed upon at the time of sale, the amount collected
shall be credited to account 794, ``Premiums and assessments on capital
stock.''
Note B: When no par stock without stated value is issued in exchange
for par stock, or no par stock with stated value, amounts included in
account 794, ``Premiums and assessments on capital stock,'' for the
retired stock, shall be transferred to this account, and any amounts
icluded in the discount account for the retired stock shall be charged
to account 795, ``Other capital''; Provided, however, That any excess
over the amount of accumulated net gains applicable to the subclass
exchanged included in account 795 shall be charged to account 616,
``Other debits to retained earnings.''
Note C: An appropriate record shall be maintained with respect to
shares of capital stock showing the number of shares nominally issued,
nominally outstanding, actually issued and actually outstanding.
Note D: See definitions 3, actually issued; 4, actually outstanding;
25, nominally issued; and 26, nominally outstanding.
[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
792 Capital stock to be distributed.
This account shall include the company's liability under agreements
to exchange its capital stock for the outstanding securities of
companies whose physical property has been acquired under such
agreements, but whose securities have not yet been surrendered for
exchange. This account shall also include stock dividends declared that
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remain undistributed at the end of an accounting period.
[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
793 Discount on capital stock.
This account shall include the excess of the par or stated value
recorded in account 791, ``Capital stock,'' (at the time of original
sale of par value stock and no par stock with a stated value) plus
accrued dividends, if any, over the cash value of the consideration
received.
794 Premiums and assessments on capital stock.
(a) This account shall include the excess of the actual cash vlaue
of the consideration received (at the time of original sale of par value
stock and no par stock with a stated value) over the par or stated value
of the stock issued, plus accrued dividends, if any, and subsequent
assessments against stockholders representing payments required in
excess of par or stated value.
(b) Separate subdivisions shall be maintained for premiums and for
assessments on each class and series of stock.
(c) When capital stock is retired and canceled, this account shall
be charged with the amount of assessments and premiums originally
recorded for the shares of stock retired and canceled.
795 Other capital.
(a) This account shall include all other capital not classified as
retained earnings. It shall include such items as the amount of consent
dividends on the accounting company's capital stock; capital arising
from donations by stockholders of capital stock of the company or other
contribution to capital; amounts representing reduction of the par or
recorded value of the accounting company's capital stock, including
reductions arising in merger of a railroad and pooling of interest (see
instruction 2-15(d)); capital from reorganization of the company (see
instruction 2-16); and amounts of forfeited subscriptions to the
accounting company's capital stock. This account shall also include
gains from the acquisition, retirement, or resale of reacquired shares
of the accounting company's capital stock; and forgiveness by
stockholders as a contribution to capital of long-term debt owed to
them.
(b) This account shall be charged with amounts included herein when
capitalized by stock dividends or otherwise with the approval of the
Board, and losses from retirement or resale of reacquired shares up to
an amount not in excess of credits included herein applicable to the
reacquired shares; and may be charged with the amortization of discount
on capital stock to the extent of credits herein for such stock.
(c) This account shall be subdivided to show each source of other
capital.
(d) This account shall be subdivided to show the cumulative amounts
representing the cost of nondepreciable operating property received from
government authorities, in accordance with the provisions of instruction
1-15.
(e) This account shall also be subdivided to show the cumulative
amounts representing the cost of depreciable and nondepreciable
operating property received by Amtrak or Conrail from the Federal
Government. (See instruction 1-15.)
(49 U.S.C. 304, 320)
[42 FR 35017, July 7, 1977, as amended at 43 FR 30558, July 17, 1978]
797 Retained earnings; appropriated.
This account shall include the accumulated amount of retained
earnings which has been appropriated and set aside according to
provisions of mortgages, deeds of trust, reorganization plans, or other
agreements requiring payments into capital funds, sinking funds, or
other funds; and also appropriations for general contingencies, possible
future losses (not in the category of liabilities actually incurred),
and other corporate purposes. This account shall be subdivided by
classes of appropriations showing the purpose for which each
appropriation is made.
798 Retained earnings; unappropriated.
(a) This account shall include the net balance (debit or credit) of
the amounts included in accounts 601 to 623, inclusive. It shall not
include transfers either to or from account 795,
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``Other capital,'' unless authorized upon application to the Board.
(b) Any balance representing retained earnings not segregated at the
date of the balance sheet shall be included in a subdivision of this
account.
(c) The balance of accounts 601 to 623, inclusive, shall be closed
into this account at the end of each calendar year.
798.1 Net unrealized loss on noncurrent marketable securities.
This account shall include the accumulated changes in account 724 to
the extent that these changes represent a net unrealized loss (aggregate
cost exceeds market value).
798.5 Treasury stock.
(a) This account shall include in subdivisions for each class the
reacquisition cost of capital stock which has been actually issued or
assumed by the carrier, then reacquired, and is neither retired nor
canceled, nor properly includable in sinking or other funds.
(b) This account shall be maintained to reflect separately
securities pledged and unpledged.
(c) This account shall be shown on the balance sheet as a deduction
in arriving at stockholders' equity.
Note: The accounting for the reacquisition and resale of capital
stock shall be in accordance with instruction 5-4, paragraphs (e)
through (g).
Form of General Balance Sheet Statement
The classified form of general balance sheet statement is designed
to show the financial condition of the accounting company at any
specified date.
Assets
Current assets:
701. Cash.
702. Temporary cash investments.
703. Special deposits.
704. Loans and notes receivable.
705. Accounts receivable; Interline and