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New words:
abroad, actor, amparo, aware, Carte, column, demonstrating, derecognized, difficult, district, elevated, emission, expressed, extinguish, fifteen, freeze, froze, GHG, inflationary, Infraestructura, invasion, lift, magnitude, mailbox, methodology, Ministry, necessarily, newly, notification, overhead, prove, revitalization, risen, Russia, Scope, SICT, Society, stronger, SWIFT, Telecommunication, Title, transparency, Ukraine, USD, viable
Removed:
ASR, assumed, authorizing, basic, book, call, ceased, circuit, collar, computation, consolidating, decision, diluted, dispose, disposed, drawn, eligibility, excise, exclusively, facilitating, GILTI, inference, institution, internally, inventory, issuing, NaN, obligate, privately, proposal, published, reducing, reliable, repurchase, repurchased, responded, SCT, stopped, transition, utilization, vendor, workforce
Financial report summary
?Risks
- Public health threats or outbreaks of communicable diseases could have a material adverse effect on the Company’s operations and financial results.
- Capacity constraints could materially adversely affect service and operating efficiency.
- KCS competes against other railroads and other transportation providers.
- KCS’s business strategy, operations and growth rely significantly on agreements with other railroads and third parties.
- KCS depends on the stability, availability and security of its information technology systems to operate its business. Disruptions in KCS’s information technology (“IT”) systems could materially adversely affect the Company’s business and operating results.
- Severe weather or other natural disasters could result in significant business interruptions that impact KCS’s railroad operations and expenditures, and KCS’s insurance coverage may not be sufficient to cover damages to KCS or all of KCS’s liabilities.
- KCS’s business may be adversely affected by changes in general economic or other market conditions.
- KCS may be subject to various claims and litigation that could have a material adverse effect on KCS’s consolidated financial statements.
- A majority of KCS’s employees belong to labor unions. Strikes or work stoppages could adversely affect operations.
- KCS is dependent on certain key suppliers of core rail equipment.
- KCS’s business is vulnerable to fluctuations in fuel costs and disruptions in fuel supplies.
- KCS’s business may be affected by future acts of terrorism, war or other acts of violence or crime.
- KCS U.S. and Mexico rail common carrier subsidiaries are required by United States and Mexican laws, respectively, to transport hazardous materials, which could expose KCS to significant costs and claims.
- KCS’s business is subject to regulation by federal, state and local legislatures and agencies that could impose significant costs on the Company’s business operations.
- KCS is subject to environmental regulations, which may impose significant costs on the Company’s business operations.
- KCS’s business may be affected by climate change and the market and regulatory responses to climate change.
- During the pendency of the Voting Trust, KCS is subject to business uncertainties and contractual restrictions that could materially adversely affect KCS’s operating results, financial position and/or cash flows or result in a loss of employees, suppliers, vendors or customers.
- KCS may have difficulty attracting, motivating and retaining executives and other key employees in light of the combination of CP and KCS.
- Significant demands will be placed on KCS as a result of the combination of the two companies.
- KCSM’s Mexican Concession is subject to revocation or termination in certain circumstances, which would prevent KCSM from conducting rail operations under the Concession and would have a material adverse effect on the Company’s consolidated financial statements.
- KCS’s ownership of KCSM and operations in Mexico subject it to Mexican economic and political risks.
- Downturns in the United States economy or in trade between the United States and Asia or Mexico and fluctuations in the peso-dollar exchange rates could have material adverse effects on KCS’s consolidated financial statements.
- The unavailability of qualified personnel could adversely affect KCS’s operations.
Management Discussion
- Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations
- The discussions set forth in this Annual Report on Form 10-K may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. In addition, management may make forward-looking statements orally or in other writings, including, but not limited to, in press releases, executive presentations, in annual reports, and other filings with the Securities and Exchange Commission. Readers can usually identify these forward-looking statements by the use of such verbs as “may,” “will,” “should,” “likely,” “plans,” “projects,” “expects,” “anticipates,” “believes” or similar verbs or conjugations of such verbs. The Company has based these forward-looking statements on management’s current expectations, assumptions, estimates, beliefs, and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, forward-looking statements involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control, including but not limited to, the factors identified below and those discussed under Item 1A, Risk Factors, of this Form 10-K. Readers are strongly encouraged to consider these factors and the following factors when evaluating any forward-looking statements concerning the Company:
- •the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern de México, S.A. de C.V.’s (“KCSM”) Concession;