Accounts Receivable

3 Months Ended

Mar. 31, 2014

Accounts Receivable, Net [Abstract]

Accounts Receivable [Text Block]

ACCOUNTS RECEIVABLE:

Accounts receivable consisted of the following as of March 31, 2014 and December 31, 2013 (dollars in thousands):

	March 31, 2014			December 31, 2013
Accounts receivable - trade	$	257,264		$	264,562
Accounts receivable - grants from outside parties	23,052			33,003
Accounts receivable - insurance claims and other third-party claims	49,496			31,643
Total accounts receivable	329,812			329,208
Less: Allowance for doubtful accounts	(3,652		)	(3,755		)
Accounts receivable, net	$	326,160		$	325,453

Grants from Outside Parties

The Company periodically receives grants for the upgrade and construction of rail lines and the upgrade of locomotives from federal, provincial, state and local agencies and other outside parties in the United States and Australia and provinces in Canada in which the Company operates. These grants typically reimburse the Company for 50% to 100% of the actual cost of specific projects. In total, the Company received grant proceeds of $12.8 million and $2.8 million in the three months ended March 31, 2014 and 2013, respectively, from such grant programs. The proceeds were presented as cash inflows from investing activities within each of the applicable periods.

None of the Company’s grants represent a future liability of the Company unless the Company abandons the rehabilitated or new track structure within a specified period of time, fails to maintain the upgraded or new track to certain standards and to make certain minimum capital improvements or ceases use of the locomotives within the specified geographic area and time period, as defined in the respective agreements. As the Company intends to comply with these agreements, the Company has recorded additions to track property and locomotives and has deferred the amount of the grants. The amortization of deferred grants is a non-cash offset to depreciation expense over the useful lives of the related assets. During the three months ended March 31, 2014 and 2013, the Company recorded offsets to depreciation expense from grant amortization of $2.6 million and $2.2 million, respectively.

Insurance and Third-Party Claims

Accounts receivable from insurance and other third-party claims at March 31, 2014 included $32.2 million from the Company’s North American & European Operations and $17.3 million from the Company’s Australian Operations. The balance from the Company’s North American & European Operations resulted predominately from the Company’s anticipated insurance recoveries associated with a derailment in Alabama (the Aliceville Derailment) in November 2013 and the settlement of a third-party claim. The balance from the Company’s Australian Operations resulted predominately from the Company’s anticipated insurance recoveries associated with a derailment in Australia’s Northern Territory (the Edith River Derailment) in December 2011. The Company received proceeds from insurance totaling $0.3 million and $9.3 million for the three months ended March 31, 2014 and 2013, respectively.