þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Delaware (State or other jurisdiction of incorporation or organization) 427 West 12th Street, Kansas City, Missouri (Address of principal executive offices) | 44-0663509 (I.R.S. Employer Identification No.) 64105 (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Preferred Stock, Par Value $25 Per Share, 4%, Noncumulative | New York Stock Exchange | |
Common Stock, $.01 Per Share Par Value | New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
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Item 1. | Business |
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• | Meridian Speedway, LLC (“MSLLC”), a |
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Norfolk Southern Corporation (“NS”) through its wholly-owned subsidiary, The Alabama Great Southern Railroad Company, owns the remaining |
• | ||
• | Trans-Serve, Inc. (doing business as Superior Tie and Timber), a wholly-owned and consolidated operator of a railroad wood tie treatment facility; | |
• | Transfin Insurance, Ltd., a wholly-owned and consolidated captive insurance company, providing property, general liability and certain other insurance coverage to KCS and its subsidiaries and affiliates; | |
• | Southern Capital Corporation, LLC (“Southern Capital”), a fifty percent owned unconsolidated affiliate that leases locomotives and other equipment; and | |
• | Ferrocarril y Terminal del Valle de México, S.A. de C.V. (“FTVM”), a twenty-five percent owned unconsolidated affiliate that provides railroad services as well as ancillary services in the greater Mexico City area. |
MARKETS SERVED | Business Mix | |
Chemical and petroleum. This sector | ||
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• | Conferring regularly with other railroads’ security personnel and with industry experts on security issues; | |
• | Analyzing routing alternatives and other strategies to reduce the distances that certain chemicals, which might be toxic if inhaled, are transported; | |
• | Initiating a series of over 20 voluntary action items agreed to between AAR and DHS as enhancing security in the rail industry; and | |
• | Including periodic security training as part of the scheduled training for operating employees and managers. |
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Item 1A. | Risk Factors |
• | quarterly variations in operating results; | |
• | operating results that vary from the expectations of management, securities analysts, ratings agencies and investors; | |
• | changes in expectations as to future financial performance, including financial estimates by securities analysts, ratings agencies and investors; | |
• | developments generally affecting the railroad industry; | |
• | announcements by KCS or its competitors of significant contracts, acquisitions, joint marketing relationships, joint ventures or capital commitments; | |
• | the assertion or resolution of significant claims or proceedings against KCS; | |
• | KCS’ dividend policy and restrictions on the payment of dividends; | |
• | future sales of KCS’ equity or equity-linked securities; | |
• | the issuance of common stock in payment of dividends on preferred stock or upon conversion of preferred | |
• | general domestic and international economic conditions including the availability of short- and long-term financing. |
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Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
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2008 | 2007 | 2006 | ||||||||||
Total track miles | 7,700 | 7,685 | 7,690 | |||||||||
Miles of welded rail in service | 4,605 | 4,605 | 4,380 | |||||||||
Main line welded rail percent | 79% | 79% | 75% | |||||||||
Cross ties replaced | 706,975 | 708,715 | 641,610 |
2008 | 2007 | 2006 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||
Leased | Owned | Leased | Owned | Leased | Owned | Leased | Owned | Leased | Owned | |||||||||||||||||||||||||||||||
Locomotives | 416 | 627 | 417 | 656 | 385 | 692 | 382 | 536 | 416 | 627 | ||||||||||||||||||||||||||||||
Rolling stock: | ||||||||||||||||||||||||||||||||||||||||
Box cars | 6,460 | 1,581 | 5,967 | 2,419 | 6,454 | 2,522 | 6,199 | 875 | 6,460 | 1,581 | ||||||||||||||||||||||||||||||
Gondolas | 3,271 | 1,781 | 3,321 | 1,917 | 3,557 | 1,993 | 2,856 | 1,746 | 3,271 | 1,781 | ||||||||||||||||||||||||||||||
Covered hoppers | 5,841 | 923 | 6,055 | 1,170 | 6,638 | 1,323 | ||||||||||||||||||||||||||||||||||
Hoppers | 4,949 | 882 | 5,841 | 923 | ||||||||||||||||||||||||||||||||||||
Flat cars (intermodal and other) | 2,071 | 583 | 1,995 | 894 | 2,247 | 945 | 1,335 | 512 | 2,071 | 583 | ||||||||||||||||||||||||||||||
Auto racks | 1,753 | — | 1,753 | — | 1,750 | — | 1,761 | — | 1,753 | — | ||||||||||||||||||||||||||||||
Tank cars | 524 | 32 | 527 | 93 | 546 | 101 | 527 | 15 | 524 | 32 | ||||||||||||||||||||||||||||||
Other | — | 57 | — | 58 | — | 58 | — | 51 | — | 57 | ||||||||||||||||||||||||||||||
Total | 19,920 | 4,957 | 19,618 | 6,551 | 21,192 | 6,942 | 17,627 | 4,081 | 19,920 | 4,957 | ||||||||||||||||||||||||||||||
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Average Age (In Years): | 2008 | 2007 | 2006 | |||||||||||||||||
Average Age (In Years) of Leased and Owned Locomotives: | 2009 | 2008 | ||||||||||||||||||
Road locomotives | 13.5 | 15.7 | 20.3 | 13.5 | 13.5 | |||||||||||||||
All locomotives | 19.3 | 20.6 | 21.7 | 20.0 | 19.3 |
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Item 3. | Legal Proceedings |
Item 4. | Submission of Matters to a Vote of Security Holders |
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Item 5. | Market for KCS’ Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
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2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||
Kansas City Southern | 100.00 | 123.81 | 170.60 | 202.37 | 239.73 | 133.03 | 100.00 | 137.79 | 163.45 | 193.63 | 107.45 | 187.76 | ||||||||||||||||||||||||||||||||||||||||||||||||
S&P 500 | 100.00 | 110.88 | 116.33 | 134.70 | 142.10 | 89.53 | 100.00 | 104.91 | 121.48 | 128.16 | 80.74 | 102.11 | ||||||||||||||||||||||||||||||||||||||||||||||||
Dow Jones Transportation Average | 100.00 | 128.68 | 143.18 | 154.43 | 163.90 | 131.82 | 100.00 | 111.27 | 120.01 | 127.37 | 102.44 | 126.00 | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) | The Dow Jones Transportation Average is an index prepared by Dow Jones & Co., Inc., an independent company. | |
(2) | The S&P 500 is an index prepared by Standard and Poor’s Corporation, an independent company. The S&P 500 Index reflects the change in weighted average market value for 500 companies whose shares are traded on the New York Stock Exchange, American Stock Exchange and the Nasdaq Stock Market. |
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Item 6. | Selected Financial Data |
2008 | 2007 | 2006 | 2005(i) | 2004 | 2009 | 2008 | 2007 | 2006 | 2005(i) | |||||||||||||||||||||||||||||||
Earnings From Continuing Operations | ||||||||||||||||||||||||||||||||||||||||
Results of Operations | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,852.1 | $ | 1,742.8 | $ | 1,659.7 | $ | 1,352.0 | $ | 639.5 | $ | 1,480.2 | $ | 1,852.1 | $ | 1,742.8 | $ | 1,659.7 | $ | 1,352.0 | ||||||||||||||||||||
Operating expenses | 1,461.9 | 1,380.4 | 1,355.4 | 1,289.7 | 556.0 | 1,212.0 | 1,461.9 | 1,380.4 | 1,355.4 | 1,289.7 | ||||||||||||||||||||||||||||||
Operating income | $ | 390.2 | $ | 362.4 | $ | 304.3 | $ | 62.3 | $ | 83.5 | $ | 268.2 | $ | 390.2 | $ | 362.4 | $ | 304.3 | $ | 62.3 | ||||||||||||||||||||
Income before minority interest | $ | 184.2 | $ | 154.2 | $ | 109.2 | $ | 83.1 | $ | 24.4 | ||||||||||||||||||||||||||||||
Net income | $ | 69.0 | $ | 184.2 | $ | 154.2 | $ | 109.2 | $ | 83.1 | ||||||||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | 2.02 | $ | 1.77 | $ | 1.20 | $ | 1.21 | $ | 0.25 | $ | 0.61 | $ | 2.02 | $ | 1.77 | $ | 1.20 | $ | 1.21 | ||||||||||||||||||||
Diluted | 1.86 | 1.57 | 1.08 | 1.10 | 0.25 | 0.61 | 1.86 | 1.57 | 1.08 | 1.10 | ||||||||||||||||||||||||||||||
Financial Position | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,442.7 | $ | 4,928.2 | $ | 4,637.3 | $ | 4,423.6 | $ | 2,440.6 | $ | 5,479.1 | $ | 5,439.2 | $ | 4,928.2 | $ | 4,637.3 | $ | 4,423.6 | ||||||||||||||||||||
Total debt obligations, including current portion | 2,086.1 | 1,755.9 | 1,757.0 | 1,860.6 | 665.7 | 1,980.0 | 2,086.1 | 1,755.9 | 1,757.0 | 1,860.6 | ||||||||||||||||||||||||||||||
Total stockholders’ equity | 1,911.5 | 1,726.3 | 1,582.4 | 1,426.2 | 1,016.5 | 2,058.8 | 1,911.5 | 1,726.3 | 1,582.4 | 1,426.2 | ||||||||||||||||||||||||||||||
Total equity(ii) | 2,341.6 | 2,185.2 | 1,969.3 | 1,682.7 | 1,426.2 | |||||||||||||||||||||||||||||||||||
Other Data Per Common Share | ||||||||||||||||||||||||||||||||||||||||
Cash dividends per common share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
(i) | The 2005 results reflect the consolidation of Mexrail effective January 1, 2005 and KCSM effective April 1, 2005. | |
(ii) | The adoption of the new accounting guidance on noncontrolling interests has resulted in the reclassification of amounts previously attributable to minority interest, now referred to as noncontrolling interest, to a separate component of total equity in the |
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Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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• | fluctuations in the market price for the Company’s common stock; | |
• | KCS’ dividend policy and restrictions on its ability to pay dividends on its common stock; | |
• | KCS’ high degree of leverage; | |
• | the Company’s potential need for and ability to obtain additional financing; | |
• | KCS’ ability to successfully implement its business strategy, including the strategy to convert customers from using trucking services to rail transportation services; | |
• | the impact of competition, including competition from other rail carriers, trucking companies and maritime shippers in the United States and Mexico; | |
• | United States, Mexican and global economic, political and social conditions; | |
• | the effects of the North American Free Trade Agreement, or NAFTA, on the level of trade among the United States, Mexico and Canada; | |
• | uncertainties regarding the litigation KCS faces and any future claims and litigation; | |
• | the effects of employee training, stability of the existing information technology systems, technological improvements and capital expenditures on labor productivity, operating efficiencies and service reliability; | |
• | the adverse impact of any termination or revocation of KCSM’s Concession by the Mexican government; | |
• | legal or regulatory developments in the United States, Mexico or Canada; | |
• | KCS’ ability to generate sufficient cash, including its ability to collect on its customer receivables, to pay principal and interest on its debt, meet its obligations and fund its other liquidity | |
• | the effects of adverse general economic conditions affecting customer demand and the industries and geographic areas that produce and consume the commodities KCS carries; | |
• | material adverse changes in economic and industry conditions, including the availability of short and long-term financing, both within the United States and Mexico and globally; |
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• | natural events such as severe weather, fire, floods, hurricanes, earthquakes or other disruptions to the Company’s operating systems, structures and equipment or the ability of customers to produce or deliver their products; | |
• | KCS’ business may be affected by market and regulatory responses to climate change; | |
• | disruption in fuel supplies, changes in fuel prices and the Company’s ability to assess fuel surcharges; | |
• | KCS’ ability to attract and retain qualified management personnel; | |
• | changes in labor costs and labor difficulties, including work stoppages affecting either operations or customers’ abilities to deliver goods for shipment; | |
• | credit risk of customers and counterparties and their failure to meet their financial obligations; | |
• | the outcome of claims and litigation, including those related to environmental contamination, | |
• | acts of terrorism or risk of terrorist activities; | |
• | war or risk of war; |
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• | political and economic conditions in Mexico and the level of trade between the United States and Mexico; and | |
• | legislative, regulatory, or legal developments involving taxation, including enactment of new foreign, federal or state income or other tax rates, revisions of controlling authority, and the outcome of tax claims and litigation. |
• | The Kansas City Southern Railway Company (“KCSR”), a wholly-owned subsidiary; | |
• | Kansas City Southern de México, S.A. de C.V. (“KCSM”), which became a wholly-owned subsidiary as of April 1, 2005, when KCS completed its acquisition of KCSM; | |
• | Mexrail, Inc. (“Mexrail”), a wholly-owned consolidated subsidiary; which, in turn, wholly owns The Texas Mexican Railway Company (“Tex-Mex”); | |
• | Meridian Speedway, LLC (“MSLLC”), a | |
• | Panama Canal Railway Company (“PCRC”), a fifty percent owned unconsolidated affiliate, that provides international container shipping companies with a railway transportation option in lieu of the Panama Canal and owns all of the common stock of Panarail Tourism Company (“Panarail”); | |
• | Southern Capital Corporation, LLC (“Southern Capital”), a fifty percent owned unconsolidated affiliate that owns and leases locomotives and other equipment; and |
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• | Ferrocarril y Terminal del Valle de México, S.A. de C.V. (“FTVM”), a twenty-five percent owned unconsolidated affiliate that provides railroad services as well as ancillary services in the greater Mexico City area. |
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Change | ||||||||||||||||
2009 | 2008 | Dollars | Percent | |||||||||||||
Revenues | $ | 1,480.2 | $ | 1,852.1 | $ | (371.9 | ) | (20 | )% | |||||||
Operating expenses | 1,212.0 | 1,461.9 | (249.9 | ) | (17 | )% | ||||||||||
Operating income | 268.2 | 390.2 | (122.0 | ) | (31 | )% | ||||||||||
Equity in net earnings of unconsolidated affiliates | 7.7 | 18.0 | (10.3 | ) | (57 | )% | ||||||||||
Interest expense | (173.7 | ) | (138.9 | ) | (34.8 | ) | 25 | % | ||||||||
Debt retirement costs | (5.9 | ) | (5.6 | ) | (0.3 | ) | 5 | % | ||||||||
Foreign exchange gain (loss) | 2.1 | (21.0 | ) | 23.1 | (110 | )% | ||||||||||
Other income, net | 5.2 | 6.0 | (0.8 | ) | (13 | )% | ||||||||||
Income before income taxes and noncontrolling interest | 103.6 | 248.7 | (145.1 | ) | (58 | )% | ||||||||||
Income tax expense | 34.6 | 64.5 | (29.9 | ) | (46 | )% | ||||||||||
Net income | 69.0 | 184.2 | (115.2 | ) | (63 | )% | ||||||||||
Noncontrolling interest | 1.0 | 0.3 | 0.7 | 233 | % | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ | 68.0 | $ | 183.9 | $ | (115.9 | ) | (63 | )% | |||||||
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Revenues | Carloads and Units | Revenue per Carload/Unit | ||||||||||||||||||||||||||||||||||
2009 | 2008 | % Change | 2009 | 2008 | % Change | 2009 | 2008 | % Change | ||||||||||||||||||||||||||||
Chemical and petroleum | $ | 323.4 | $ | 347.8 | (7 | )% | 238.3 | 240.2 | (1 | )% | $ | 1,357 | $ | 1,448 | (6 | )% | ||||||||||||||||||||
Industrial and consumer products | 344.4 | 508.6 | (32 | )% | 267.0 | 367.6 | (27 | )% | 1,290 | 1,384 | (7 | )% | ||||||||||||||||||||||||
Agriculture and minerals | 360.0 | 455.0 | (21 | )% | 246.3 | 293.3 | (16 | )% | 1,462 | 1,551 | (6 | )% | ||||||||||||||||||||||||
Total general commodities | 1,027.8 | 1,311.4 | (22 | )% | 751.6 | 901.1 | (17 | )% | 1,367 | 1,455 | (6 | )% | ||||||||||||||||||||||||
Coal | 187.2 | 203.7 | (8 | )% | 301.2 | 301.3 | — | 622 | 676 | (8 | )% | |||||||||||||||||||||||||
Intermodal | 143.4 | 160.6 | (11 | )% | 516.4 | 520.9 | (1 | )% | 278 | 308 | (10 | )% | ||||||||||||||||||||||||
Automotive | 52.9 | 105.6 | (50 | )% | 51.7 | 101.6 | (49 | )% | 1,023 | 1,039 | (2 | )% | ||||||||||||||||||||||||
Subtotal | 1,411.3 | 1,781.3 | (21 | )% | 1,620.9 | 1,824.9 | (11 | )% | $ | 871 | $ | 976 | (11 | )% | ||||||||||||||||||||||
Other revenue | 68.9 | 70.8 | (3 | )% | ||||||||||||||||||||||||||||||||
Total revenues(i) | $ | 1,480.2 | $ | 1,852.1 | (20 | )% | ||||||||||||||||||||||||||||||
(i) Included in revenues: | ||||||||||||||||||||||||||||||||||||
Fuel surcharge | $ | 77.9 | $ | 200.3 | ||||||||||||||||||||||||||||||||
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Revenues by commodity | ||||
group for 2009 | ||||
Chemical and petroleum. Revenues decreased $24.4 million for the year ended December 31, 2009, primarily due to a decline in the fuel surcharge and unfavorable fluctuations in the value of the U.S. dollar against the value of the Mexican peso. Revenues decreased in chemical products used to manufacture glass and paint as a result of the downturn in the automotive and construction industries. Petroleum products also declined year over year due to an unfavorable customer mix, partially offset by an increase in volumes. | ||||
Industrial and consumer products. Revenues decreased $164.2 million for the year ended December 31, 2009, due to decreases in volume, fuel surcharge and unfavorable fluctuations in the value of the U.S. dollar against the value of the Mexican peso. Volumes in metals and scrap decreased as a result of weak demand for pipe used in oil drilling and slab shipments used in automobiles and appliances. Forest products were affected by decreased demand that resulted in temporary mill shutdowns to bring inventory in line with demand. | ||||
Agriculture and minerals. Revenues decreased $95.0 million for the year ended December 31, 2009, due to decreases in volume, fuel surcharge and unfavorable fluctuations in the value of the U.S. dollar against the value of the Mexican peso. Grain traffic accounted for the majority of the decrease as traffic patterns shifted due to a combination of factors. There was an abundant supply of grain, primarily corn that was grown in Mexico, as well as an abundant supply of alternative grains which drove a change in origination and traffic patterns. In addition, significantly lower vessel freight rates from U.S. ports along the Gulf of Mexico drove a substitution from rail to vessel for certain shipments to Mexico. The decrease was partially offset by an increase in food products revenue driven by new business. |
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Change | ||||||||||||||||
2009 | 2008 | Dollars | Percent | |||||||||||||
Compensation and benefits | $ | 328.8 | $ | 369.9 | $ | (41.1 | ) | (11 | )% | |||||||
Purchased services | 171.3 | 209.1 | (37.8 | ) | (18 | )% | ||||||||||
Fuel | 189.4 | 324.6 | (135.2 | ) | (42 | )% | ||||||||||
Equipment costs | 164.1 | 178.6 | (14.5 | ) | (8 | )% | ||||||||||
Depreciation and amortization | 182.5 | 168.6 | 13.9 | 8 | % | |||||||||||
Casualties and insurance | 43.1 | 72.7 | (29.6 | ) | (41 | )% | ||||||||||
Materials and other | 132.8 | 138.4 | (5.6 | ) | (4 | )% | ||||||||||
Total operating expenses | $ | 1,212.0 | $ | 1,461.9 | $ | (249.9 | ) | (17 | )% | |||||||
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• | Equity in earnings from the operations of PCRC was $2.9 million for the year ended December 31, 2009, compared to $8.2 million for 2008. The decrease is primarily due to a reduction in container volume attributable to the downturn in the economy. | |
• | Equity in earnings of Southern Capital was $3.5 million for the year ended December 31, 2009, compared to $5.1 million for 2008. The decrease is primarily due to the loss on sale of railcars and other equipment in 2009, lower lease income due to lease expirations and larger casualties expense recorded in 2009. | |
• | KCSM’s equity in earnings of FTVM was $1.3 million for the year ended December 31, 2009, compared to $4.7 million for 2008. The decrease is primarily due to the decline in volume due to the downturn in the Mexican economy and a favorable adjustment related to negotiations of a maintenance agreement recorded in 2008. |
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Change | ||||||||||||||||
2008 | 2007 | Dollars | Percent | |||||||||||||
Revenues | $ | 1,852.1 | $ | 1,742.8 | $ | 109.3 | 6 | % | ||||||||
Operating expenses: | ||||||||||||||||
Compensation and benefits | 374.6 | 394.1 | (19.5 | ) | (5 | )% | ||||||||||
Purchased services | 198.9 | 184.7 | 14.2 | 8 | % | |||||||||||
Fuel | 324.8 | 270.8 | 54.0 | 20 | % | |||||||||||
Equipment costs | 182.5 | 182.4 | 0.1 | — | ||||||||||||
Depreciation and amortization | 170.1 | 160.2 | 9.9 | 6 | % | |||||||||||
Casualties and insurance | 74.7 | 71.0 | 3.7 | 5 | % | |||||||||||
Materials and other | 136.3 | 117.2 | 19.1 | 16 | % | |||||||||||
Total operating expenses | 1,461.9 | 1,380.4 | 81.5 | 6 | % | |||||||||||
Operating income | 390.2 | 362.4 | 27.8 | 8 | % | |||||||||||
Equity in net earnings of unconsolidated affiliates | 18.0 | 11.4 | 6.6 | 58 | % | |||||||||||
Interest expense | (138.9 | ) | (156.7 | ) | 17.8 | (11 | )% | |||||||||
Debt retirement costs | (5.6 | ) | (6.9 | ) | 1.3 | (19 | )% | |||||||||
Foreign exchange loss | (21.0 | ) | (0.9 | ) | (20.1 | ) | 2,233 | % | ||||||||
Other income | 6.0 | 12.0 | (6.0 | ) | (50 | )% | ||||||||||
Income before income taxes and minority interest | 248.7 | 221.3 | 27.4 | 12 | % | |||||||||||
Income tax expense | 64.5 | 67.1 | (2.6 | ) | (4 | )% | ||||||||||
Income before minority interest | 184.2 | 154.2 | 30.0 | 19 | % | |||||||||||
Minority interest | 0.3 | 0.4 | (0.1 | ) | (25 | )% | ||||||||||
Net income | $ | 183.9 | $ | 153.8 | $ | 30.1 | 20 | % | ||||||||
Change | ||||||||||||||||
2008 | 2007 | Dollars | Percent | |||||||||||||
Revenues | $ | 1,852.1 | $ | 1,742.8 | $ | 109.3 | 6 | % | ||||||||
Operating expenses | 1,461.9 | 1,380.4 | 81.5 | 6 | % | |||||||||||
Operating income | 390.2 | 362.4 | 27.8 | 8 | % | |||||||||||
Equity in net earnings of unconsolidated affiliates | 18.0 | 11.4 | 6.6 | 58 | % | |||||||||||
Interest expense | (138.9 | ) | (156.7 | ) | 17.8 | (11 | )% | |||||||||
Debt retirement costs | (5.6 | ) | (6.9 | ) | 1.3 | (19 | )% | |||||||||
Foreign exchange loss | (21.0 | ) | (0.9 | ) | (20.1 | ) | 2,233 | % | ||||||||
Other income, net | 6.0 | 12.0 | (6.0 | ) | (50 | )% | ||||||||||
Income before income taxes and noncontrolling interest | 248.7 | 221.3 | 27.4 | 12 | % | |||||||||||
Income tax expense | 64.5 | 67.1 | (2.6 | ) | (4 | )% | ||||||||||
Net income | 184.2 | 154.2 | 30.0 | 19 | % | |||||||||||
Noncontrolling interest | 0.3 | 0.4 | (0.1 | ) | (25 | )% | ||||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ | 183.9 | $ | 153.8 | $ | 30.1 | 20 | % | ||||||||
Revenues | Carloads and Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | Revenues | Carloads and Units | Revenue per Carload/Unit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2008 | 2007 | Dollars | Percent | 2008 | 2007 | Units | Percent | 2008 | 2007 | % Change | 2008 | 2007 | % Change | 2008 | 2007 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Chemical and petroleum | $ | 347.8 | $ | 320.4 | $ | 27.4 | 9 | % | 240.2 | 228.3 | 11.9 | 5 | % | $ | 347.8 | $ | 320.4 | 9 | % | 240.2 | 228.3 | 5 | % | $ | 1,448 | $ | 1,403 | 3 | % | |||||||||||||||||||||||||||||||||||||||
Industrial and consumer products | 508.6 | 501.1 | 7.5 | 1 | % | 367.6 | 393.8 | (26.2 | ) | (7 | )% | 508.6 | 501.1 | 1 | % | 367.6 | 393.8 | (7 | )% | 1,384 | 1,272 | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Agriculture and minerals | 455.0 | 403.7 | 51.3 | 13 | % | 293.3 | 297.9 | (4.6 | ) | (2 | )% | 455.0 | 403.7 | 13 | % | 293.3 | 297.9 | (2 | )% | 1,551 | 1,355 | 14 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total general commodities | 1,311.4 | 1,225.2 | 86.2 | 7 | % | 901.1 | 920.0 | (18.9 | ) | (2 | )% | 1,311.4 | 1,225.2 | 7 | % | 901.1 | 920.0 | (2 | )% | 1,455 | 1,332 | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Coal | 203.7 | 193.0 | 6 | % | 301.3 | 314.1 | (4 | )% | 676 | 614 | 10 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intermodal | 160.6 | 143.1 | 17.5 | 12 | % | 520.9 | 526.4 | (5.5 | ) | (1 | )% | 160.6 | 143.1 | 12 | % | 520.9 | 526.4 | (1 | )% | 308 | 272 | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||
Automotive | 105.6 | 110.9 | (5.3 | ) | (5 | )% | 101.6 | 108.4 | (6.8 | ) | (6 | )% | 105.6 | 110.9 | (5 | )% | 101.6 | 108.4 | (6 | )% | 1,039 | 1,023 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||
Coal | 203.7 | 193.0 | 10.7 | 6 | % | 301.3 | 314.1 | (12.8 | ) | (4 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carload revenues, carloads and units | 1,781.3 | 1,672.2 | 109.1 | 7 | % | 1,824.9 | 1,868.9 | (44.0 | ) | (2 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | 1,781.3 | 1,672.2 | 7 | % | 1,824.9 | 1,868.9 | (2 | )% | $ | 976 | $ | 895 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenue | 70.8 | 70.6 | 0.2 | — | 70.8 | 70.6 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues(i) | $ | 1,852.1 | $ | 1,742.8 | $ | 109.3 | 6 | % | $ | 1,852.1 | $ | 1,742.8 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(i) Included in revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuel surcharge | $ | 200.3 | $ | 133.2 | $ | 200.3 | $ | 133.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
32
35
Revenues by commodity | ||||
group for 2008 | ||||
Chemical and petroleum.Revenues increased $27.4 million for the year ended December 31, 2008, due to targeted rate increases, fuel surcharge increases, and increased traffic volumes from new business primarily in | ||||
Industrial and consumer products.Revenues increased $7.5 million for the year ended December 31, 2008 primarily due to higher demand in the | ||||
Agriculture and minerals.Revenues increased $51.3 million for the year ended December 31, 2008, driven by targeted rate increases, fuel surcharge increases and increased length of haul of cross border traffic from customers moving their business from various competitors onto the KCS network. |
3336
Change | Change | |||||||||||||||||||||||||||||||
2008 | 2007 | Dollars | Percent | 2008 | 2007 | Dollars | Percent | |||||||||||||||||||||||||
Compensation and benefits | $ | 374.6 | $ | 394.1 | $ | (19.5 | ) | (5 | )% | $ | 369.9 | $ | 384.0 | $ | (14.1 | ) | (4 | )% | ||||||||||||||
Purchased services | 198.9 | 184.7 | 14.2 | 8 | % | 209.1 | 198.4 | 10.7 | 5 | % | ||||||||||||||||||||||
Fuel | 324.8 | 270.8 | 54.0 | 20 | % | 324.6 | 270.2 | 54.4 | 20 | % | ||||||||||||||||||||||
Equipment costs | 182.5 | 182.4 | 0.1 | — | 178.6 | 184.6 | (6.0 | ) | (3 | )% | ||||||||||||||||||||||
Depreciation and amortization | 170.1 | 160.2 | 9.9 | 6 | % | 168.6 | 159.0 | 9.6 | 6 | % | ||||||||||||||||||||||
Casualties and insurance | 74.7 | 71.0 | 3.7 | 5 | % | 72.7 | 69.3 | 3.4 | 5 | % | ||||||||||||||||||||||
Materials and other | 136.3 | 117.2 | 19.1 | 16 | % | 138.4 | 114.9 | 23.5 | 20 | % | ||||||||||||||||||||||
Total operating expenses | $ | 1,461.9 | $ | 1,380.4 | $ | 81.5 | 6 | % | $ | 1,461.9 | $ | 1,380.4 | $ | 81.5 | 6 | % | ||||||||||||||||
• | Equity in earnings from the operations of PCRC was $8.2 million for the year ended December 31, 2008, compared to $3.7 million in 2007. The increase is primarily due to increased freight revenue driven by higher volume from new and existing customers. |
37
• | Equity in earnings of Southern Capital was $5.1 million for the year ended December 31, 2008, compared to $4.8 million in 2007. The increase is primarily attributed to increased lease income as well as a reduction in interest and administrative expenses. | |
• | KCSM’s equity in earnings of FTVM was $4.7 million for the year ended December 31, 2008, compared to $2.9 million in 2007. The increase primarily reflects reduced maintenance expense in 2008 and a non-recurring prior year loss recorded in 2007. |
34
35
Change | ||||||||||||||||
2007 | 2006 | Dollars | Percent | |||||||||||||
Revenues | $ | 1,742.8 | $ | 1,659.7 | $ | 83.1 | 5 | % | ||||||||
Operating expenses: | ||||||||||||||||
Compensation and benefits | 394.1 | 393.6 | 0.5 | — | ||||||||||||
Purchased services | 184.7 | 204.7 | (20.0 | ) | (10 | )% | ||||||||||
Fuel | 270.8 | 253.6 | 17.2 | 7 | % | |||||||||||
Equipment costs | 182.4 | 179.7 | 2.7 | 2 | % | |||||||||||
Depreciation and amortization | 160.2 | 155.0 | 5.2 | 3 | % | |||||||||||
Casualties and insurance | 71.0 | 53.4 | 17.6 | 33 | % | |||||||||||
Materials and other | 117.2 | 115.4 | 1.8 | 2 | % | |||||||||||
Total operating expenses | 1,380.4 | 1,355.4 | 25.0 | 2 | % | |||||||||||
Operating income | 362.4 | 304.3 | 58.1 | 19 | % | |||||||||||
Equity in net earnings of unconsolidated affiliates | 11.4 | 7.3 | 4.1 | 56 | % | |||||||||||
Interest expense | (156.7 | ) | (167.2 | ) | 10.5 | (6 | )% | |||||||||
Debt retirement costs | (6.9 | ) | (4.8 | ) | (2.1 | ) | 44 | % | ||||||||
Foreign exchange loss | (0.9 | ) | (3.7 | ) | 2.8 | (76 | )% | |||||||||
Other income | 12.0 | 18.7 | (6.7 | ) | (36 | )% | ||||||||||
Income before income taxes and minority interest | 221.3 | 154.6 | 66.7 | 43 | % | |||||||||||
Income tax provision | 67.1 | 45.4 | 21.7 | 48 | % | |||||||||||
Income before minority interest | 154.2 | 109.2 | 45.0 | 41 | % | |||||||||||
Minority interest | 0.4 | 0.3 | 0.1 | 33 | % | |||||||||||
Net income | $ | 153.8 | $ | 108.9 | $ | 44.9 | 41 | % | ||||||||
Revenues | Carloads and Units | |||||||||||||||||||||||||||||||
Change | Change | |||||||||||||||||||||||||||||||
2007 | 2006 | Dollars | Percent | 2007 | 2006 | Units | Percent | |||||||||||||||||||||||||
Chemical and petroleum | $ | 320.4 | $ | 289.9 | $ | 30.5 | 11 | % | 228.3 | 217.6 | 10.7 | 5 | % | |||||||||||||||||||
Industrial and consumer products | 501.1 | 496.3 | 4.8 | 1 | % | 393.8 | 442.4 | (48.6 | ) | (11 | )% | |||||||||||||||||||||
Agriculture and minerals | 403.7 | 384.4 | 19.3 | 5 | % | 297.9 | 304.3 | (6.4 | ) | (2 | )% | |||||||||||||||||||||
Total general commodities | 1,225.2 | 1,170.6 | 54.6 | 5 | % | 920.0 | 964.3 | (44.3 | ) | (5 | )% | |||||||||||||||||||||
Intermodal | 143.1 | 135.4 | 7.7 | 6 | % | 526.4 | 547.7 | (21.3 | ) | (4 | )% | |||||||||||||||||||||
Automotive | 110.9 | 101.8 | 9.1 | 9 | % | 108.4 | 103.7 | 4.7 | 5 | % | ||||||||||||||||||||||
Coal | 193.0 | 174.9 | 18.1 | 10 | % | 314.1 | 305.0 | 9.1 | 3 | % | ||||||||||||||||||||||
Carload revenues, carloads and units | 1,672.2 | 1,582.7 | 89.5 | 6 | % | 1,868.9 | 1,920.7 | (51.8 | ) | (3 | )% | |||||||||||||||||||||
Other revenue | 70.6 | 77.0 | (6.4 | ) | (8 | )% | ||||||||||||||||||||||||||
Total revenues(i) | $ | 1,742.8 | $ | 1,659.7 | $ | 83.1 | 5 | % | ||||||||||||||||||||||||
(i) Included in revenues: | ||||||||||||||||||||||||||||||||
Fuel surcharge | $ | 133.2 | $ | 128.0 | ||||||||||||||||||||||||||||
36
Change | ||||||||||||||||
2007 | 2006 | Dollars | Percent | |||||||||||||
Compensation and benefits | $ | 394.1 | $ | 393.6 | $ | 0.5 | — | |||||||||
Purchased services | 184.7 | 204.7 | (20.0 | ) | (10 | )% | ||||||||||
Fuel | 270.8 | 253.6 | 17.2 | 7 | % | |||||||||||
Equipment costs | 182.4 | 179.7 | 2.7 | 2 | % | |||||||||||
Depreciation and amortization | 160.2 | 155.0 | 5.2 | 3 | % | |||||||||||
Casualties and insurance | 71.0 | 53.4 | 17.6 | 33 | % | |||||||||||
Materials and other | 117.2 | 115.4 | 1.8 | 2 | % | |||||||||||
Total operating expenses | $ | 1,380.4 | $ | 1,355.4 | $ | 25.0 | 2 | % | ||||||||
37
38
38
39
40
39
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Cash flows provided by (used for): | ||||||||||||||||||||||||
Operating activities | $ | 455.7 | $ | 381.5 | $ | 267.5 | $ | 292.9 | $ | 413.0 | $ | 367.8 | ||||||||||||
Investing activities | (580.7 | ) | (380.5 | ) | (166.0 | ) | (346.4 | ) | (538.0 | ) | (366.8 | ) | ||||||||||||
Financing activities | 299.4 | (24.5 | ) | (53.6 | ) | (58.9 | ) | 299.4 | (24.5 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 174.4 | (23.5 | ) | 47.9 | (112.4 | ) | 174.4 | (23.5 | ) | |||||||||||||||
Cash and cash equivalents beginning of year | 55.5 | 79.0 | 31.1 | 229.9 | 55.5 | 79.0 | ||||||||||||||||||
Cash and cash equivalents end of year | $ | 229.9 | $ | 55.5 | $ | 79.0 | $ | 117.5 | $ | 229.9 | $ | 55.5 | ||||||||||||
40
41
2008 | 2007 | 2006 | ||||||||||
Net income | $ | 183.9 | $ | 153.8 | $ | 108.9 | ||||||
Depreciation and amortization | 170.1 | 160.2 | 155.0 | |||||||||
Deferred income taxes | 63.8 | 66.3 | 41.0 | |||||||||
Equity in undistributed earnings of unconsolidated affiliates | (18.0 | ) | (11.4 | ) | (7.3 | ) | ||||||
Share-based and other deferred compensation | 5.5 | 9.0 | 10.2 | |||||||||
Minority interest | 0.3 | 0.4 | 0.3 | |||||||||
Distributions from unconsolidated affiliates | 18.9 | 4.0 | 4.5 | |||||||||
Gain on sale of assets | (3.4 | ) | (5.7 | ) | (7.8 | ) | ||||||
Excess tax benefit from share-based compensation | (5.6 | ) | (2.4 | ) | (0.2 | ) | ||||||
Debt retirement costs | 5.6 | 6.9 | 4.8 | |||||||||
Changes in working capital items | 45.5 | 8.0 | (24.5 | ) | ||||||||
Other, net | (10.9 | ) | (7.6 | ) | (17.4 | ) | ||||||
Net cash flow provided by operating activities | $ | 455.7 | $ | 381.5 | $ | 267.5 | ||||||
• | Financing cash outflows for 2009 were $58.9 million. During 2009, the Company repaid $319.1 million of debt, including the purchase of the 71/2% Senior Notes and repayment of borrowings under the 2007 KCSM Credit Agreement. During the same period, the Company received net proceeds of $189.0 million from the issuance of the 121/2% Senior Notes. The net cash outflows from these refinancing activities were substantially offset by $73.9 million in proceeds from the issuance of common stock under the ATM Equity Offering and Common Stock Purchase Agreement. | |
• | Financing cash inflows for 2008 were $299.4 million, resulting primarily from the issuance of debt and the financing of | |
• | Financing cash outflows for 2007 were $24.5 million, resulting primarily from the costs associated with refinancing debt and preferred stock dividend payments. During 2007, KCSM issued $165.0 million of 73/8% senior unsecured notes and used the proceeds, together with a new $30.0 million |
42
Credit Agreement. KCSM entered into a |
• | Proceeds from the sale of KCS common stock pursuant to employee stock plans were $3.0 million, $8.6 million, and $0.7 million in 2009, 2008, and | |
• | Payment of preferred stock cash dividends were $11.0 million, $15.2 million and $23.3 million in 2009, 2008, and |
41
Payments Due by Period | ||||||||||||||||||||
Less than | 1-3 | 3-5 | More than | |||||||||||||||||
Total | 1 Year | Years | Years | 5 Years | ||||||||||||||||
Long-term debt (including interest and capital lease obligations)(i) | $ | 2,758.6 | $ | 779.1 | $ | 283.2 | $ | 1,042.9 | $ | 653.4 | ||||||||||
Operating leases | 1,214.5 | 147.0 | 272.1 | 207.2 | 588.2 | |||||||||||||||
FIN 48 obligations | 2.1 | — | 0.4 | — | 1.7 | |||||||||||||||
Capital expenditures obligations(ii) | 495.0 | 116.0 | 247.0 | 132.0 | — | |||||||||||||||
Other contractual obligations(iii) | 355.4 | 56.8 | 100.5 | 78.8 | 119.3 | |||||||||||||||
Net periodic cost (benefit) recognized | $ | 4,825.6 | $ | 1,098.9 | $ | 903.2 | $ | 1,460.9 | $ | 1,362.6 | ||||||||||
Payments Due by Period | ||||||||||||||||||||
Less than | 1-3 | 3-5 | More than | |||||||||||||||||
Total | 1 Year | Years | Years | 5 Years | ||||||||||||||||
Long-term debt (including interest and capital lease obligations) | $ | 2,701.6 | $ | 230.0 | $ | 770.6 | $ | 1,032.0 | $ | 669.0 | ||||||||||
Operating leases | 1,104.2 | 146.6 | 252.5 | 199.3 | 505.8 | |||||||||||||||
Obligations due to uncertainty in income taxes | 2.1 | — | 0.4 | 1.7 | — | |||||||||||||||
Capital expenditures obligations(i) | 379.0 | 121.0 | 258.0 | — | — | |||||||||||||||
Other contractual obligations(ii) | 422.3 | 53.8 | 104.4 | 80.1 | 184.0 | |||||||||||||||
Total | $ | 4,609.2 | $ | 551.4 | $ | 1,385.9 | $ | 1,313.1 | $ | 1,358.8 | ||||||||||
(i) | ||
Capital expenditure obligations include minimum capital expenditures under the KCSM Concession agreement. | ||
Other contractual obligations include purchase commitments and certain maintenance agreements. |
43
4442
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Roadway capital program | $ | 243.8 | $ | 162.5 | $ | 100.4 | $ | 154.5 | $ | 243.8 | $ | 162.5 | ||||||||||||
Equipment | 49.1 | 40.3 | 40.4 | 11.2 | 49.1 | 40.3 | ||||||||||||||||||
Capacity | 166.0 | 47.4 | 70.7 | 76.8 | 166.0 | 47.4 | ||||||||||||||||||
Locomotive acquisitions | 79.2 | 127.2 | — | — | 79.2 | 127.2 | ||||||||||||||||||
Information technology | 16.8 | 12.3 | 15.4 | 6.5 | 16.8 | 12.3 | ||||||||||||||||||
Other | 21.6 | 20.8 | 14.9 | 33.9 | 21.6 | 20.8 | ||||||||||||||||||
Total capital expenditures | $ | 576.5 | $ | 410.5 | $ | 241.8 | ||||||||||||||||||
Total capital expenditures (accrual basis) | 282.9 | 576.5 | 410.5 | |||||||||||||||||||||
Change in capital accruals | 66.3 | (42.7 | ) | (13.7 | ) | |||||||||||||||||||
Total cash capital expenditures | $ | 349.2 | $ | 533.8 | $ | 396.8 | ||||||||||||||||||
2008 | 2007 | 2009 | 2008 | |||||||||||||
Debt due within one year | $ | 637.4 | $ | 650.9 | $ | 68.1 | $ | 637.4 | ||||||||
Long-term debt | 1,448.7 | 1,105.0 | 1,911.9 | 1,448.7 | ||||||||||||
Total debt | 2,086.1 | 1,755.9 | 1,980.0 | 2,086.1 | ||||||||||||
Stockholders’ equity | 1,911.5 | 1,726.3 | ||||||||||||||
Total equity | 2,341.6 | 2,185.2 | ||||||||||||||
Total debt plus equity | $ | 3,997.6 | $ | 3,482.2 | ||||||||||||
Total debt plus total equity | $ | 4,321.6 | $ | 4,271.3 | ||||||||||||
45
43
• | Statistical analysis of historical patterns of use and retirements of each asset class; | |
• | Evaluation of any expected changes in current operations and the outlook for the continued use of the assets; | |
• | Evaluation of technological advances and changes to maintenance practices; and | |
• | Historical and expected salvage to be received upon retirement. |
4644
4745
Average | ||||||||
Depreciation | ||||||||
Major Category | Cost | Rate | ||||||
Land | $ | 159.3 | N/A | |||||
Concession land rights | 135.7 | 2.0% | ||||||
Road property | ||||||||
Rail and other track material | 1,248.4 | 3.1% | ||||||
Ties | 909.8 | 3.7% | ||||||
Grading | 692.8 | 1.6% | ||||||
Bridges and tunnels | 461.3 | 1.6% | ||||||
Ballast | 359.7 | 4.0% | ||||||
Other(i) | 620.7 | 1.7% to 4.9% | ||||||
Total road property | 4,292.7 | 2.9% | ||||||
Equipment | ||||||||
Locomotives | 395.8 | 3.5% | ||||||
Freight cars | 142.8 | 4.6% | ||||||
Work equipment | 27.6 | 5.0% | ||||||
Other | 30.9 | 10.5% | ||||||
Total equipment | 597.1 | 4.2% | ||||||
Software | 84.2 | 10.2% | ||||||
Other | 54.5 | 3.8% | ||||||
Total | 5,323.5 | |||||||
Accumulated depreciation | 1,089.9 | |||||||
Net property and equipment | 4,233.6 | |||||||
Construction in progress | 354.3 | |||||||
Property and equipment, net | $ | 4,587.9 | ||||||
48
49
46
50
Item 7A. | Quantitative and Qualitative Disclosures |
5147
Item 8. | Financial Statements and Supplementary Data |
Page | ||||
Financial Statement Schedules: |
5248
5349
5450
51
2009 | 2008 | 2007 | ||||||||||
In millions, except share | ||||||||||||
and per share amounts | ||||||||||||
Revenues | $ | 1,480.2 | $ | 1,852.1 | $ | 1,742.8 | ||||||
Operating expenses: | ||||||||||||
Compensation and benefits | 328.8 | 369.9 | 384.0 | |||||||||
Purchased services | 171.3 | 209.1 | 198.4 | |||||||||
Fuel | 189.4 | 324.6 | 270.2 | |||||||||
Equipment costs | 164.1 | 178.6 | 184.6 | |||||||||
Depreciation and amortization | 182.5 | 168.6 | 159.0 | |||||||||
Casualties and insurance | 43.1 | 72.7 | 69.3 | |||||||||
Materials and other | 132.8 | 138.4 | 114.9 | |||||||||
Total operating expenses | 1,212.0 | 1,461.9 | 1,380.4 | |||||||||
Operating income | 268.2 | 390.2 | 362.4 | |||||||||
Equity in net earnings of unconsolidated affiliates | 7.7 | 18.0 | 11.4 | |||||||||
Interest expense | (173.7 | ) | (138.9 | ) | (156.7 | ) | ||||||
Debt retirement costs | (5.9 | ) | (5.6 | ) | (6.9 | ) | ||||||
Foreign exchange gain (loss) | 2.1 | (21.0 | ) | (0.9 | ) | |||||||
Other income, net | 5.2 | 6.0 | 12.0 | |||||||||
Income before income taxes and noncontrolling interest | 103.6 | 248.7 | 221.3 | |||||||||
Income tax expense | 34.6 | 64.5 | 67.1 | |||||||||
Net income | 69.0 | 184.2 | 154.2 | |||||||||
Noncontrolling interest | 1.0 | 0.3 | 0.4 | |||||||||
Net income attributable to Kansas City Southern and subsidiaries | 68.0 | 183.9 | 153.8 | |||||||||
Preferred stock dividends | 11.0 | 15.2 | 19.8 | |||||||||
Net income available to common shareholders | $ | 57.0 | $ | 168.7 | $ | 134.0 | ||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 0.61 | $ | 2.02 | $ | 1.77 | ||||||
Diluted earnings per share | $ | 0.61 | $ | 1.86 | $ | 1.57 | ||||||
Average shares outstanding(in thousands): | ||||||||||||
Basic | 93,145 | 83,674 | 75,832 | |||||||||
Potentially dilutive common shares | 504 | 14,928 | 21,784 | |||||||||
Diluted | 93,649 | 98,602 | 97,616 | |||||||||
52
2009 | 2008 | |||||||
In millions, except | ||||||||
share amounts | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 117.5 | $ | 229.9 | ||||
Accounts receivable, net | 139.4 | 163.8 | ||||||
Restricted funds | 35.8 | 34.0 | ||||||
Materials and supplies | 106.4 | 96.3 | ||||||
Deferred income taxes | 151.7 | 62.8 | ||||||
Other current assets | 63.0 | 98.8 | ||||||
Total current assets | 613.8 | 685.6 | ||||||
Investments | 46.8 | 60.5 | ||||||
Property and equipment (including concession assets), net | 4,747.2 | 4,598.4 | ||||||
Deferred income taxes | — | 36.4 | ||||||
Other assets | 71.3 | 58.3 | ||||||
Total assets | $ | 5,479.1 | $ | 5,439.2 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Debt due within one year | $ | 68.1 | $ | 637.4 | ||||
Accounts payable and accrued liabilities | 342.7 | 455.4 | ||||||
Total current liabilities | 410.8 | 1,092.8 | ||||||
Long-term debt | 1,911.9 | 1,448.7 | ||||||
Deferred income taxes | 567.1 | 492.4 | ||||||
Other noncurrent liabilities and deferred credits | 247.7 | 220.1 | ||||||
Total liabilities | 3,137.5 | 3,254.0 | ||||||
Commitments and contingencies | — | — | ||||||
Stockholders’ equity: | ||||||||
$25 par, 4% noncumulative, preferred stock, 840,000 shares authorized, 649,736 shares issued, 242,170 shares outstanding | 6.1 | 6.1 | ||||||
Series D — cumulative convertible perpetual preferred stock, $1 par, 5.125%, 210,000 shares authorized and issued, 209,995 shares outstanding with a liquidation preference of $1,000 per share | 0.2 | 0.2 | ||||||
$.01 par, common stock, 400,000,000 shares authorized; 110,583,068 and 106,252,860 shares issued at December 31, 2009 and 2008, respectively; 96,213,346 and 91,463,762 shares outstanding at December 31, 2009 and 2008, respectively | 0.9 | 0.9 | ||||||
Paid-in capital | 661.4 | 572.3 | ||||||
Retained earnings | 1,394.6 | 1,337.6 | ||||||
Accumulated other comprehensive loss | (4.4 | ) | (5.6 | ) | ||||
Total stockholders’ equity | 2,058.8 | 1,911.5 | ||||||
Noncontrolling interest | 282.8 | 273.7 | ||||||
Total equity | 2,341.6 | 2,185.2 | ||||||
Total liabilities and equity | $ | 5,479.1 | $ | 5,439.2 | ||||
53
2009 | 2008 | 2007 | ||||||||||
In millions | ||||||||||||
Operating activities: | ||||||||||||
Net income | $ | 69.0 | $ | 184.2 | $ | 154.2 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 182.5 | 168.6 | 159.0 | |||||||||
Deferred income taxes | 31.4 | 63.8 | 66.3 | |||||||||
Equity in undistributed earnings of unconsolidated affiliates | (7.7 | ) | (18.0 | ) | (11.4 | ) | ||||||
Share-based compensation | 9.9 | 7.4 | 11.1 | |||||||||
Excess tax benefit from share-based compensation | (1.5 | ) | (5.6 | ) | (2.4 | ) | ||||||
Other deferred compensation | 3.3 | (1.9 | ) | (2.1 | ) | |||||||
Distributions from unconsolidated affiliates | 7.3 | 18.9 | 4.0 | |||||||||
Gain on sale of assets | (3.8 | ) | (3.4 | ) | (5.7 | ) | ||||||
Debt retirement costs | 5.9 | 5.6 | 6.9 | |||||||||
Changes in working capital items: | ||||||||||||
Accounts receivable | 23.3 | 52.6 | 81.0 | |||||||||
Materials and supplies | (12.3 | ) | (6.0 | ) | (12.4 | ) | ||||||
Other current assets | 8.6 | (8.0 | ) | 0.9 | ||||||||
Accounts payable and accrued liabilities | (19.9 | ) | (42.8 | ) | (65.4 | ) | ||||||
Other, net | (3.1 | ) | (2.4 | ) | (16.2 | ) | ||||||
Net cash provided by operating activities | 292.9 | 413.0 | 367.8 | |||||||||
Investing activities: | ||||||||||||
Capital expenditures | (349.2 | ) | (533.8 | ) | (396.8 | ) | ||||||
Proceeds from disposal of property | 13.9 | 20.9 | 16.6 | |||||||||
Contribution from NS for MSLLC | — | 27.0 | 143.4 | |||||||||
Property investments in MSLLC | (22.0 | ) | (30.4 | ) | (118.0 | ) | ||||||
Proceeds and repayments from loans to equity affiliates | — | — | 14.4 | |||||||||
Other, net | 10.9 | (21.7 | ) | (26.4 | ) | |||||||
Net cash used for investing activities | (346.4 | ) | (538.0 | ) | (366.8 | ) | ||||||
Financing activities: | ||||||||||||
Proceeds from issuance of long-term debt | 202.1 | 580.1 | 326.6 | |||||||||
Repayment of long-term debt | (319.1 | ) | (262.8 | ) | (311.3 | ) | ||||||
Debt costs | (9.3 | ) | (16.9 | ) | (19.6 | ) | ||||||
Proceeds from common stock issuance | 73.9 | — | — | |||||||||
Proceeds from stock plans | 3.0 | 8.6 | 0.7 | |||||||||
Excess tax benefit from share-based compensation | 1.5 | 5.6 | 2.4 | |||||||||
Preferred stock dividends paid | (11.0 | ) | (15.2 | ) | (23.3 | ) | ||||||
Net cash provided by (used for) financing activities | (58.9 | ) | 299.4 | (24.5 | ) | |||||||
Cash and cash equivalents: | ||||||||||||
Net increase (decrease) during each year | (112.4 | ) | 174.4 | (23.5 | ) | |||||||
At beginning of year | 229.9 | 55.5 | 79.0 | |||||||||
At end of year | $ | 117.5 | $ | 229.9 | $ | 55.5 | ||||||
Supplemental cash flow information | ||||||||||||
Non-cash investing and financing activities: | ||||||||||||
Capital expenditures accrued but not yet paid at year end | $ | 24.9 | $ | 91.2 | $ | 48.5 | ||||||
Capital lease obligations incurred | — | 13.1 | 7.2 | |||||||||
Non-cash asset acquisitions | 21.3 | 21.8 | — | |||||||||
Property contribution from NS for MSLLC | 9.6 | 3.5 | — | |||||||||
Property dividend from Southern Capital | — | — | 10.3 | |||||||||
Cash payments: | ||||||||||||
Interest paid, net of amounts capitalized | $ | 174.0 | $ | 136.8 | $ | 141.5 | ||||||
Income tax payments net of refunds | 3.5 | 1.5 | 13.6 |
54
$1 Par Cumulative | Accumulated | |||||||||||||||||||||||||||||||||||
$25 Par | Preferred Stock | $.01 Par | Other | |||||||||||||||||||||||||||||||||
Preferred | Series C | Series D | Common | Paid in | Retained | Comprehensive | Noncontrolling | |||||||||||||||||||||||||||||
Stock | 4.25% | 5.125% | Stock | Capital | Earnings | Income (Loss) | Interest | Total | ||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2006 | $ | 6.1 | $ | 0.4 | $ | 0.2 | $ | 0.7 | $ | 523.0 | $ | 1,050.7 | $ | 1.3 | $ | 100.3 | $ | 1,682.7 | ||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 153.8 | 0.4 | 154.2 | |||||||||||||||||||||||||||||||||
Prior service cost and amortization net of tax of $0.6 million | (0.9 | ) | (0.9 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | 153.8 | (0.9 | ) | 0.4 | 153.3 | ||||||||||||||||||||||||||
Contributions from noncontrolling interest | 143.4 | 143.4 | ||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | (1.1 | ) | (1.1 | ) | ||||||||||||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||||||
Dividends on series C cumulative preferred stock ($37.53/share) | (15.0 | ) | (15.0 | ) | ||||||||||||||||||||||||||||||||
Dividends on series D cumulative preferred stock ($90.67/share) | 11.0 | (19.1 | ) | (8.1 | ) | |||||||||||||||||||||||||||||||
Options exercised and stock subscribed | 0.1 | 2.0 | 2.1 | |||||||||||||||||||||||||||||||||
Tax benefit from share-based compensation | 2.4 | 2.4 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 11.1 | 11.1 | ||||||||||||||||||||||||||||||||||
Adjustment to income tax payable upon adoption of certain provisions of FASB ASC740-10 (formerly FIN 48) | (1.3 | ) | (1.3 | ) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2007 | 6.1 | 0.4 | 0.2 | 0.8 | 549.5 | 1,168.9 | 0.4 | 243.0 | 1,969.3 | |||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 183.9 | 0.3 | 184.2 | |||||||||||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax of $(2.1) million | (3.4 | ) | (3.4 | ) | ||||||||||||||||||||||||||||||||
Reclassification adjustment from cash flow hedges included in net income, net of tax of $(0.2) million | (0.3 | ) | (0.3 | ) | ||||||||||||||||||||||||||||||||
Prior service cost amortization and adjustment, net of tax of $0.1 million | 0.6 | 0.6 | ||||||||||||||||||||||||||||||||||
Cumulative translation adjustment — FTVM, net of tax of $(1.1) million | (2.9 | ) | (2.9 | ) | ||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | 183.9 | (6.0 | ) | 0.3 | 178.2 | ||||||||||||||||||||||||||
Contributions from noncontrolling interest | 30.9 | 30.9 | ||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | (0.5 | ) | (0.5 | ) | ||||||||||||||||||||||||||||||||
Conversion of Series C cumulative convertible preferred stock | (0.4 | ) | 0.1 | 0.3 | — | |||||||||||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||||||
Dividends on series C cumulative preferred stock ($10.62/share) | (4.2 | ) | (4.2 | ) | ||||||||||||||||||||||||||||||||
Dividends on series D cumulative preferred stock ($51.24/share) | (10.8 | ) | (10.8 | ) | ||||||||||||||||||||||||||||||||
Options exercised and stock subscribed | 9.5 | 9.5 | ||||||||||||||||||||||||||||||||||
Tax benefit from share-based compensation | 5.6 | 5.6 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 7.4 | 7.4 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2008 | 6.1 | — | 0.2 | 0.9 | 572.3 | 1,337.6 | (5.6 | ) | 273.7 | 2,185.2 | ||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | 68.0 | 1.0 | 69.0 | |||||||||||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax of $(0.9) million | (1.6 | ) | (1.6 | ) | ||||||||||||||||||||||||||||||||
Reclassification adjustment from cash flow hedges included in net income, net of tax of $1.3 million | 2.3 | 2.3 | ||||||||||||||||||||||||||||||||||
Prior service cost amortization net of tax of $(0.1) million | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||||||
Cumulative translation adjustment — FTVM, net of tax of $(0.1) million | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | 68.0 | 1.2 | 1.0 | 70.2 | |||||||||||||||||||||||||||
Contributions from noncontrolling interest | 9.6 | 9.6 | ||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interest | (1.5 | ) | (1.5 | ) | ||||||||||||||||||||||||||||||||
Common stock issued | 73.9 | 73.9 | ||||||||||||||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||||||
Dividends on series D cumulative preferred stock ($51.24/share) | (10.8 | ) | (10.8 | ) | ||||||||||||||||||||||||||||||||
Options exercised and stock subscribed | 3.8 | 3.8 | ||||||||||||||||||||||||||||||||||
Tax benefit from share-based compensation | 1.5 | 1.5 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 9.9 | 9.9 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2009 | $ | 6.1 | $ | — | $ | 0.2 | $ | 0.9 | $ | 661.4 | $ | 1,394.6 | $ | (4.4 | ) | $ | 282.8 | $ | 2,341.6 | |||||||||||||||||
55
2008 | 2007 | 2006 | ||||||||||
In millions, except share | ||||||||||||
and per share amounts | ||||||||||||
Revenues | $ | 1,852.1 | $ | 1,742.8 | $ | 1,659.7 | ||||||
Operating expenses: | ||||||||||||
Compensation and benefits | 374.6 | 394.1 | 393.6 | |||||||||
Purchased services | 198.9 | 184.7 | 204.7 | |||||||||
Fuel | 324.8 | 270.8 | 253.6 | |||||||||
Equipment costs | 182.5 | 182.4 | 179.7 | |||||||||
Depreciation and amortization | 170.1 | 160.2 | 155.0 | |||||||||
Casualties and insurance | 74.7 | 71.0 | 53.4 | |||||||||
Materials and other | 136.3 | 117.2 | 115.4 | |||||||||
Total operating expenses | 1,461.9 | 1,380.4 | 1,355.4 | |||||||||
Operating income | 390.2 | 362.4 | 304.3 | |||||||||
Equity in net earnings of unconsolidated affiliates | 18.0 | 11.4 | 7.3 | |||||||||
Interest expense | (138.9 | ) | (156.7 | ) | (167.2 | ) | ||||||
Debt retirement costs | (5.6 | ) | (6.9 | ) | (4.8 | ) | ||||||
Foreign exchange loss | (21.0 | ) | (0.9 | ) | (3.7 | ) | ||||||
Other income | 6.0 | 12.0 | 18.7 | |||||||||
Income before income taxes and minority interest | 248.7 | 221.3 | 154.6 | |||||||||
Income tax expense | 64.5 | 67.1 | 45.4 | |||||||||
Income before minority interest | 184.2 | 154.2 | 109.2 | |||||||||
Minority interest | 0.3 | 0.4 | 0.3 | |||||||||
Net income | 183.9 | 153.8 | 108.9 | |||||||||
Preferred stock dividends | 15.2 | 19.8 | 19.5 | |||||||||
Net income available to common shareholders | $ | 168.7 | $ | 134.0 | $ | 89.4 | ||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 2.02 | $ | 1.77 | $ | 1.20 | ||||||
Diluted earnings per share | $ | 1.86 | $ | 1.57 | $ | 1.08 | ||||||
Average shares outstanding(in thousands): | ||||||||||||
Basic | 83,674 | 75,832 | 74,593 | |||||||||
Potential dilutive common shares | 14,928 | 21,784 | 17,793 | |||||||||
Diluted | 98,602 | 97,616 | 92,386 | |||||||||
56
2008 | 2007 | |||||||
In millions, except | ||||||||
share amounts | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 229.9 | $ | 55.5 | ||||
Accounts receivable, net | 167.3 | 243.4 | ||||||
Restricted funds | 34.0 | 11.5 | ||||||
Materials and supplies | 96.3 | 90.3 | ||||||
Deferred income taxes | 62.8 | 177.8 | ||||||
Other current assets | 100.4 | 67.2 | ||||||
Total current assets | 690.7 | 645.7 | ||||||
Investments | 60.5 | 79.3 | ||||||
Property and equipment, net of accumulated depreciation of $903.4 million and $871.9 million at December 31, 2008 and 2007, respectively | 3,405.8 | 2,917.8 | ||||||
Concession assets, net of accumulated amortization of $186.5 million and $129.2 million at December 31, 2008 and 2007, respectively | 1,182.1 | 1,215.5 | ||||||
Deferred income taxes | 36.4 | — | ||||||
Other assets | 67.2 | 69.9 | ||||||
Total assets | $ | 5,442.7 | $ | 4,928.2 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Debt due within one year | $ | 637.4 | $ | 650.9 | ||||
Accounts payable and accrued liabilities | 458.9 | 447.8 | ||||||
Total current liabilities | 1,096.3 | 1,098.7 | ||||||
Other liabilities | ||||||||
Long-term debt | 1,448.7 | 1,105.0 | ||||||
Deferred income taxes | 492.4 | 499.1 | ||||||
Other noncurrent liabilities and deferred credits | 220.1 | 256.1 | ||||||
Total other liabilities | 2,161.2 | 1,860.2 | ||||||
Minority interest | 273.7 | 243.0 | ||||||
Commitments and contingencies | — | — | ||||||
Stockholders’ equity: | ||||||||
$25 par, 4% noncumulative, preferred stock, 840,000 shares authorized, 649,736 shares issued, 242,170 shares outstanding | 6.1 | 6.1 | ||||||
Series C — redeemable cumulative convertible perpetual preferred stock, $1 par, 4.25%, 400,000 shares authorized, 400,000 shares issued and outstanding with a liquidation preference of $200.0 million at December 31, 2007 | — | 0.4 | ||||||
Series D — cumulative convertible perpetual preferred stock, $1 par, 5.125%, 210,000 shares authorized and issued, 209,995 and 210,000 shares outstanding with a liquidation preference of $210.0 million at December 31, 2008 and December 31, 2007, respectively | 0.2 | 0.2 | ||||||
$.01 par, common stock, 400,000,000 shares authorized; 106,252,860 and 92,863,585 shares issued at December 31, 2008 and 2007, respectively; 91,463,762 and 76,975,507 shares outstanding at December 31, 2008 and 2007, respectively | 0.9 | 0.8 | ||||||
Paid in capital | 572.3 | 549.5 | ||||||
Retained earnings | 1,337.6 | 1,168.9 | ||||||
Accumulated other comprehensive income (loss) | (5.6 | ) | 0.4 | |||||
Total stockholders’ equity | 1,911.5 | 1,726.3 | ||||||
Total liabilities and stockholders’ equity | $ | 5,442.7 | $ | 4,928.2 | ||||
57
2008 | 2007 | 2006 | ||||||||||
(In millions) | ||||||||||||
Operating activities: | ||||||||||||
Net income | $ | 183.9 | $ | 153.8 | $ | 108.9 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 170.1 | 160.2 | 155.0 | |||||||||
Deferred income taxes | 63.8 | 66.3 | 41.0 | |||||||||
Equity in undistributed earnings of unconsolidated affiliates | (18.0 | ) | (11.4 | ) | (7.3 | ) | ||||||
Share-based and other deferred compensation | 5.5 | 9.0 | 10.2 | |||||||||
Minority interest | 0.3 | 0.4 | 0.3 | |||||||||
Distributions from unconsolidated affiliates | 18.9 | 4.0 | 4.5 | |||||||||
Gain on sale of assets | (3.4 | ) | (5.7 | ) | (7.8 | ) | ||||||
Excess tax benefit from share-based compensation | (5.6 | ) | (2.4 | ) | (0.2 | ) | ||||||
Debt retirement costs | 5.6 | 6.9 | 4.8 | |||||||||
Changes in working capital items: | ||||||||||||
Accounts receivable | 76.1 | 90.9 | (18.6 | ) | ||||||||
Materials and supplies | (6.0 | ) | (17.8 | ) | 0.4 | |||||||
Other current assets | (35.7 | ) | 34.2 | (50.9 | ) | |||||||
Accounts payable and accrued liabilities | 11.1 | (99.3 | ) | 44.6 | ||||||||
Other, net | (10.9 | ) | (7.6 | ) | (17.4 | ) | ||||||
Net cash provided by operating activities | 455.7 | 381.5 | 267.5 | |||||||||
Investing activities: | ||||||||||||
Capital expenditures | (576.5 | ) | (410.5 | ) | (241.8 | ) | ||||||
Proceeds from disposal of property | 20.9 | 16.6 | 30.0 | |||||||||
Contribution from NS for MSLLC (net of change in restricted contribution) | 18.5 | 129.1 | 76.5 | |||||||||
Property investments in MSLLC | (30.4 | ) | (118.0 | ) | (37.8 | ) | ||||||
Proceeds and repayments from loans to equity affiliates | — | 14.4 | (1.1 | ) | ||||||||
Other, net | (13.2 | ) | (12.1 | ) | 8.2 | |||||||
Net cash used for investing activities | (580.7 | ) | (380.5 | ) | (166.0 | ) | ||||||
Financing activities: | ||||||||||||
Proceeds from issuance of long-term debt | 580.1 | 326.6 | 460.4 | |||||||||
Repayment of long-term debt | (262.8 | ) | (311.3 | ) | (502.6 | ) | ||||||
Debt costs | (16.9 | ) | (19.6 | ) | (15.9 | ) | ||||||
Proceeds from stock plans | 8.6 | 0.7 | 8.6 | |||||||||
Excess tax benefit from share-based compensation | 5.6 | 2.4 | 0.2 | |||||||||
Dividends paid | (15.2 | ) | (23.3 | ) | (4.3 | ) | ||||||
Net cash provided by (used for) financing activities | 299.4 | (24.5 | ) | (53.6 | ) | |||||||
Cash and cash equivalents: | ||||||||||||
Net increase (decrease) during each year | 174.4 | (23.5 | ) | 47.9 | ||||||||
At beginning of year | 55.5 | 79.0 | 31.1 | |||||||||
At end of year | $ | 229.9 | $ | 55.5 | $ | 79.0 | ||||||
Supplemental cash flow information: | ||||||||||||
Cash payments (refunds): | ||||||||||||
Interest paid, net of amounts capitalized | $ | 136.8 | $ | 141.5 | $ | 163.5 | ||||||
Income tax payments (refunds) | 1.5 | 0.7 | (0.4 | ) |
58
$1 Par Cumulative | Accumulated | |||||||||||||||||||||||||||||||
$25 Par | Preferred Stock | $.01 Par | Other | |||||||||||||||||||||||||||||
Preferred | Series C | Series D | Common | Paid in | Retained | Comprehensive | ||||||||||||||||||||||||||
Stock | 4.25% | 5.125% | Stock | Capital | Earnings | Income (Loss) | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Balance at December 31, 2005 | $ | 6.1 | $ | 0.4 | $ | 0.2 | $ | 0.7 | $ | 473.1 | $ | 946.1 | $ | (0.4 | ) | $ | 1,426.2 | |||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 108.9 | 108.9 | ||||||||||||||||||||||||||||||
Amortization of interest rate swaps | 0.4 | 0.4 | ||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | 108.9 | 0.4 | 109.3 | ||||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||
Dividends on series C cumulative preferred stock ($5.31/share) | (2.1 | ) | (2.1 | ) | ||||||||||||||||||||||||||||
Dividends on series D cumulative preferred stock ($9.40/share) | (2.0 | ) | (2.0 | ) | ||||||||||||||||||||||||||||
Stock issued for repayment of debt | 35.0 | 35.0 | ||||||||||||||||||||||||||||||
Options exercised and stock subscribed | 8.6 | 8.6 | ||||||||||||||||||||||||||||||
Tax benefit from share-based compensation | 2.0 | 2.0 | ||||||||||||||||||||||||||||||
Share-based compensation | 4.3 | 4.3 | ||||||||||||||||||||||||||||||
Adjustment to adopt FASB Statement No. 158, net of tax of $0.8 million | 1.3 | 1.3 | ||||||||||||||||||||||||||||||
Balance at December 31, 2006 | 6.1 | 0.4 | 0.2 | 0.7 | 523.0 | 1,050.7 | 1.3 | 1,582.4 | ||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 153.8 | 153.8 | ||||||||||||||||||||||||||||||
Prior service cost and amortization, net of tax of $0.6 million | (0.9 | ) | (0.9 | ) | ||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | 153.8 | (0.9 | ) | 152.9 | |||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||
Dividends on series C cumulative preferred stock ($37.53/share) | (15.0 | ) | (15.0 | ) | ||||||||||||||||||||||||||||
Dividends on series D cumulative preferred stock ($90.67/share) | 11.0 | (19.1 | ) | (8.1 | ) | |||||||||||||||||||||||||||
Options exercised and stock subscribed | 0.1 | 2.0 | 2.1 | |||||||||||||||||||||||||||||
Tax benefit from share-based compensation | 2.4 | 2.4 | ||||||||||||||||||||||||||||||
Share-based compensation | 11.1 | 11.1 | ||||||||||||||||||||||||||||||
Adjustment to income tax payable upon adoption of FIN 48 | (1.3 | ) | — | (1.3 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2007 | 6.1 | 0.4 | 0.2 | 0.8 | 549.5 | 1,168.9 | 0.4 | 1,726.3 | ||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||
Net income | 183.9 | 183.9 | ||||||||||||||||||||||||||||||
Change in fair value of interest rate swaps net of tax benefit of $2.3 million | (3.7 | ) | (3.7 | ) | ||||||||||||||||||||||||||||
Prior service cost, amortization and adjustment net of tax of $0.1 million | 0.6 | 0.6 | ||||||||||||||||||||||||||||||
Cumulative translation adjustment — FTVM, net of tax of $1.1 million | (2.9 | ) | (2.9 | ) | ||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | 183.9 | (6.0 | ) | 177.9 | |||||||||||||||||||||||
Conversion of Series C cumulative convertible preferred stock | (0.4 | ) | 0.1 | 0.3 | — | — | ||||||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||
Dividends on series C cumulative preferred stock ($10.62/share) | (4.2 | ) | (4.2 | ) | ||||||||||||||||||||||||||||
Dividends on series D cumulative preferred stock ($51.24/share) | (10.8 | ) | (10.8 | ) | ||||||||||||||||||||||||||||
Options exercised and stock subscribed | 9.5 | 9.5 | ||||||||||||||||||||||||||||||
Tax benefit from share-based compensation | 5.6 | 5.6 | ||||||||||||||||||||||||||||||
Share-based compensation | 7.4 | 7.4 | ||||||||||||||||||||||||||||||
Balance at December 31, 2008 | $ | 6.1 | $ | — | $ | 0.2 | $ | 0.9 | $ | 572.3 | $ | 1,337.6 | $ | (5.6 | ) | $ | 1,911.5 | |||||||||||||||
59
Note 1. | Description of the Business |
• | The Kansas City Southern Railway Company (“KCSR”), a wholly-owned consolidated subsidiary; | |
• | Kansas City Southern de México, S.A. de C.V. (“KCSM”), is a wholly-owned subsidiary which operates under the rights granted by the Concession acquired from the Mexican government in 1997 (the “Concession”) as described below; | |
• | Mexrail, Inc. (“Mexrail”), a wholly-owned consolidated subsidiary; which wholly owns The Texas Mexican Railway Company (“Tex-Mex”); | |
• | Meridian Speedway, LLC (“MSLLC”), a | |
• | Panama Canal Railway Company (“PCRC”), a fifty percent owned unconsolidated affiliate which owns all of the common stock of Panarail Tourism Company (“Panarail”); | |
• | Southern Capital Corporation, LLC (“Southern Capital”), a fifty percent owned unconsolidated affiliate that owns and leases locomotives and other | |
• | Ferrocarril y Terminal del Valle de México, S.A. de C.V. (“FTVM”), a twenty-five percent owned unconsolidated affiliate that provides railroad services as well as ancillary services in the greater Mexico City area. |
60
56
61
57
Note 2. | Significant Accounting Policies |
6258
63
59
• | Statistical analysis of historical patterns of use and retirements of each asset class; | |
• | Evaluation of any expected changes in current operations and the outlook for the continued use of the assets; | |
• | Evaluation of technological advances and changes to maintenance practices; and | |
• | Historical and expected salvage to be received upon retirement. |
60
64
61
65
Note 3. | Earnings Per Share |
62
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Basic shares | 83,674 | 75,832 | 74,593 | 93,145 | 83,674 | 75,832 | ||||||||||||||||||
Additional weighted average shares attributable to: | ||||||||||||||||||||||||
Escrow note, $47.0 million | — | — | 1,667 | |||||||||||||||||||||
VAT/put settlement contingency payment, $110.0 million | — | — | 1,418 | |||||||||||||||||||||
Convertible preferred stock | 13,882 | 20,389 | 13,389 | — | 13,882 | 20,389 | ||||||||||||||||||
Stock options | 987 | 1,327 | 1,266 | 502 | 987 | 1,327 | ||||||||||||||||||
Nonvested shares | 59 | 68 | 53 | 2 | 59 | 68 | ||||||||||||||||||
Diluted shares | 98,602 | 97,616 | 92,386 | 93,649 | 98,602 | 97,616 | ||||||||||||||||||
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Stock options where the exercise price is greater than the average market price of common shares | 64 | 39 | — | 50 | 64 | 39 | ||||||||||||||||||
Convertible preferred stock which are anti-dilutive | — | — | 7,000 | 7,000 | — | — | ||||||||||||||||||
66
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Net income available to common stockholders for purposes of computing basic earnings per share | $ | 168.7 | $ | 134.0 | $ | 89.4 | $ | 57.0 | $ | 168.7 | $ | 134.0 | ||||||||||||
Effect of dividends on conversion of convertible preferred stock | 14.9 | 19.6 | 8.5 | — | 14.9 | 19.6 | ||||||||||||||||||
Effect of interest expense on conversion of $47.0 million escrow note | — | — | 1.4 | |||||||||||||||||||||
Effect of interest expense on conversion of note payable to TMM for VAT/Put settlement | — | — | 0.8 | |||||||||||||||||||||
Net income available to common stockholders for purposes of computing diluted earnings per share | $ | 183.6 | $ | 153.6 | $ | 100.1 | $ | 57.0 | $ | 183.6 | $ | 153.6 | ||||||||||||
6763
Note |
Percentage | ||||||||||||
Ownership at | ||||||||||||
December 31, | Carrying Value | |||||||||||
Company | 2008 | 2008 | 2007 | |||||||||
PCRC | 50 | % | $ | 6.7 | $ | 7.0 | ||||||
Southern Capital | 50 | % | 26.7 | 25.4 | ||||||||
FTVM | 25 | % | 10.9 | 16.8 | ||||||||
Other | 16.2 | 30.1 | ||||||||||
Total | $ | 60.5 | $ | 79.3 | ||||||||
2009 | ||||||||||||
2009 | 2008 | Depreciation Rate | ||||||||||
Land | $ | 162.9 | $ | 162.7 | ||||||||
Concession land rights | 137.6 | 138.0 | 1.0 | % | ||||||||
Road property | ||||||||||||
Rail and other track material | 1,320.4 | 1,255.7 | 2.8 | % | ||||||||
Ties | 1,000.6 | 912.3 | 3.6 | % | ||||||||
Grading | 729.1 | 698.8 | 0.9 | % | ||||||||
Bridges and tunnels | 513.2 | 464.1 | 1.4 | % | ||||||||
Ballast | 434.1 | 364.0 | 3.5 | % | ||||||||
Other (i) | 675.3 | 609.5 | 3.0 | % | ||||||||
Road property total | 4,672.7 | 4,304.4 | ||||||||||
Equipment | ||||||||||||
Locomotives | 487.8 | 488.4 | 6.9 | % | ||||||||
Freight cars | 149.5 | 164.2 | 5.2 | % | ||||||||
Work equipment | 17.3 | 15.9 | 2.1 | % | ||||||||
Other | 24.7 | 19.7 | 8.8 | % | ||||||||
Equipment total | 679.3 | 688.2 | ||||||||||
Technology and other | 125.3 | 115.8 | 11.2 | % | ||||||||
Construction in progress | 165.6 | 354.3 | ||||||||||
Total property | 5,943.4 | 5,763.4 | ||||||||||
Accumulated depreciation and amortization | 1,196.2 | 1,165.0 | ||||||||||
Net property | $ | 4,747.2 | $ | 4,598.4 | ||||||||
(i) | Other reflects structures, signals, roadway machines, communications and other road assets. |
6864
69
As of and for the Year Ended | ||||||||||||
December 31, 2008 | ||||||||||||
Southern | ||||||||||||
PCRC | Capital | FTVM | ||||||||||
Investment in unconsolidated affiliates | $ | 6.7 | $ | 26.7 | $ | 10.9 | ||||||
Equity in net assets of unconsolidated affiliates | 3.3 | 26.7 | 10.9 | |||||||||
Financial condition: | ||||||||||||
Current assets | $ | 18.3 | $ | 2.8 | $ | 41.0 | ||||||
Other assets | 106.2 | 65.2 | 22.4 | |||||||||
Assets | $ | 124.5 | $ | 68.0 | $ | 63.4 | ||||||
Current liabilities | $ | 13.1 | $ | — | $ | 10.7 | ||||||
Long-term liabilities | 104.7 | 14.5 | 9.2 | |||||||||
Equity of stockholders and partners | 6.7 | 53.5 | 43.5 | |||||||||
Liabilities and equity | $ | 124.5 | $ | 68.0 | $ | 63.4 | ||||||
Operating results: | ||||||||||||
Revenues | $ | 48.0 | $ | 14.8 | $ | 64.3 | ||||||
Expenses | 31.7 | 4.6 | 46.5 | |||||||||
Net income | $ | 16.3 | $ | 10.2 | $ | 17.8 | ||||||
70
As of and for the Year Ended | ||||||||||||
December 31, 2007 | ||||||||||||
Southern | ||||||||||||
PCRC | Capital | FTVM | ||||||||||
Investment in unconsolidated affiliates | $ | 7.0 | $ | 25.4 | $ | 16.8 | ||||||
Equity in net assets of unconsolidated affiliates | 3.2 | 25.4 | 15.5 | |||||||||
Financial condition: | ||||||||||||
Current assets | $ | 18.8 | $ | 1.4 | $ | 61.3 | ||||||
Other assets | 98.8 | 71.9 | 28.1 | |||||||||
Assets | $ | 117.6 | $ | 73.3 | $ | 89.4 | ||||||
Current liabilities | $ | 6.6 | $ | — | $ | 11.8 | ||||||
Long-term liabilities | 104.6 | 22.6 | 15.6 | |||||||||
Equity of stockholders and partners | 6.4 | 50.7 | 62.0 | |||||||||
Liabilities and equity | $ | 117.6 | $ | 73.3 | $ | 89.4 | ||||||
Operating results: | ||||||||||||
Revenues | $ | 30.5 | $ | 26.4 | $ | 65.8 | ||||||
Expenses | 23.9 | 5.2 | 54.0 | |||||||||
Net income | $ | 6.6 | $ | 21.2 | $ | 11.8 | ||||||
As of and for the Year Ended | ||||||||||||
December 31, 2006 | ||||||||||||
Southern | ||||||||||||
PCRC | Capital | FTVM | ||||||||||
Investment in unconsolidated affiliates | $ | 18.3 | $ | 29.2 | $ | 13.9 | ||||||
Equity in net assets of unconsolidated affiliates | (0.3 | ) | 29.2 | 12.6 | ||||||||
Financial condition: | ||||||||||||
Current assets | $ | 5.4 | $ | 2.4 | $ | 46.4 | ||||||
Other assets | 78.7 | 87.1 | 33.9 | |||||||||
Assets | $ | 84.1 | $ | 89.5 | $ | 80.3 | ||||||
Current liabilities | $ | 14.6 | $ | — | $ | 13.5 | ||||||
Long-term liabilities | 70.0 | 31.1 | 16.5 | |||||||||
Equity of stockholders and partners | (0.5 | ) | 58.4 | 50.3 | ||||||||
Liabilities and equity | $ | 84.1 | $ | 89.5 | $ | 80.3 | ||||||
Operating results: | ||||||||||||
Revenues | $ | 19.0 | $ | 18.1 | $ | 60.5 | ||||||
Expenses | 20.9 | 7.4 | 45.7 | |||||||||
Net income (loss) | $ | (1.9 | ) | $ | 10.7 | $ | 14.8 | |||||
71
Note 5. | Other Balance Sheet Captions |
2008 | 2007 | 2009 | 2008 | |||||||||||||
Purchase accounting for the fair value of certain contracts | $ | 11.3 | $ | 11.3 | ||||||||||||
Deferred employees statutory profit sharing asset | 12.2 | 16.9 | $ | 36.8 | $ | 12.2 | ||||||||||
Deposits | 20.6 | 20.6 | ||||||||||||||
Prepaid expenses | 17.1 | 16.1 | 16.1 | 14.6 | ||||||||||||
Refundable taxes | 38.9 | — | 5.9 | 38.9 | ||||||||||||
Deposits | 0.3 | 20.6 | ||||||||||||||
Purchase accounting for the fair value of certain contracts | — | 11.3 | ||||||||||||||
Other | 0.3 | 2.3 | 3.9 | 1.2 | ||||||||||||
Other current assets, net | $ | 100.4 | $ | 67.2 | $ | 63.0 | $ | 98.8 | ||||||||
72
2008 | 2007 | |||||||
Land | $ | 159.3 | $ | 157.9 | ||||
Concession land rights | 135.7 | 133.1 | ||||||
Road property | ||||||||
Rail and other track material | 1,248.4 | 1,096.1 | ||||||
Ties | 909.8 | 782.8 | ||||||
Grading | 692.8 | 669.5 | ||||||
Bridges and tunnels | 461.3 | 433.4 | ||||||
Ballast | 359.7 | 310.2 | ||||||
Other (i) | 620.7 | 546.3 | ||||||
Road property total | 4,292.7 | 3,838.3 | ||||||
Equipment | ||||||||
Locomotives | 395.8 | 349.0 | ||||||
Freight cars | 142.8 | 149.3 | ||||||
Work equipment | 27.6 | 26.5 | ||||||
Other | 30.9 | 24.5 | ||||||
Equipment total | 597.1 | 549.3 | ||||||
Software | 84.2 | 82.1 | ||||||
Other | 54.5 | 64.7 | ||||||
Total | 5,323.5 | 4,825.4 | ||||||
Accumulated depreciation and amortization | 1,089.9 | 1,001.1 | ||||||
Net property and equipment | 4,233.6 | 3,824.3 | ||||||
Construction in progress | 354.3 | 309.0 | ||||||
Property and equipment, net | $ | 4,587.9 | $ | 4,133.3 | ||||
73
2008 | 2007 | |||||||
Accounts payable | $ | 174.7 | $ | 101.1 | ||||
Claim reserves | 50.2 | 60.2 | ||||||
Purchase accounting for the fair value of certain contracts | 6.4 | 8.8 | ||||||
Income and other taxes | 23.3 | 13.4 | ||||||
Interest payable | 25.4 | 16.7 | ||||||
Prepaid freight charges due to other railroads | 27.1 | 37.0 | ||||||
Vacation accrual | 12.6 | 13.3 | ||||||
Wages Payable | 12.6 | 20.5 | ||||||
Other | 126.6 | 176.8 | ||||||
Accounts Payable and Accrued liabilities | $ | 458.9 | $ | 447.8 | ||||
2009 | 2008 | |||||||
Accounts payable | $ | 169.6 | $ | 255.8 | ||||
Derailments, personal injury and other claim reserves | 60.6 | 64.1 | ||||||
Accrued wages and vacation | 39.1 | 42.3 | ||||||
Interest payable | 23.6 | 25.5 | ||||||
Rents and leases | 19.3 | 14.2 | ||||||
Income and other taxes | 8.1 | 23.2 | ||||||
Other | 22.4 | 30.3 | ||||||
Accounts payable and accrued liabilities | $ | 342.7 | $ | 455.4 | ||||
Note 6. | Fair Value |
65
Fair Value Measurements | Assets at | |||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||
Assets: | ||||||||||||||||
Investments(i) | $ | — | $ | — | $ | 12.4 | $ | 12.4 | ||||||||
Derivative financial instruments | — | (5.7 | ) | — | (5.7 | ) | ||||||||||
$ | — | $ | (5.7 | ) | $ | 12.4 | $ | 6.7 | ||||||||
Fair Value Measurements | Net Assets (Liabilities) | |||||||||||
Level 1 | Level 2 | Level 3 | at Fair Value | |||||||||
2009 | ||||||||||||
Interest rate contracts | $— | $ | (4.9 | ) | $— | $ | (4.9 | ) | ||||
Net asset (liabilities), at fair value | $— | $ | (4.9 | ) | $— | $ | (4.9 | ) | ||||
Fair Value Measurements | Net Assets (Liabilities) | |||||||||||
Level 1 | Level 2 | Level 3 | at Fair Value | |||||||||
2008 | ||||||||||||
Investments (i) | $— | $ | — | $12.4 | $ | 12.4 | ||||||
Interest rate contracts | — | (5.7 | ) | — | (5.7 | ) | ||||||
Net asset (liabilities), at fair value | $— | $ | (5.7 | ) | $12.4 | $ | 6.7 | |||||
(i) | Investments with Level 1 and/or Level 2 inputs are classified as a Level 3 investment in their entirety if it has at least one significant Level 3 input. |
2009 | 2008 | |||||||
Balance at beginning of period | $ | 12.4 | $ | 37.8 | ||||
Total gains/(losses) (realized and unrealized) | 0.8 | (0.8 | ) | |||||
Purchases, issuances and settlements | (13.2 | ) | (24.6 | ) | ||||
Transfers in and/or out of level 3 | — | — | ||||||
Balance at end of period | $ | — | $ | 12.4 | ||||
7466
Balance at December 31, 2007 | $ | 37.8 | ||
Total gains/(losses) (realized and unrealized) | (0.8 | ) | ||
Purchases, issuances and settlements | (24.6 | ) | ||
Transfers in and/or out of level 3 | — | |||
Balance at December 31, 2008 | $ | 12.4 | ||
Note 7. | Long-Term Debt |
2008 | 2007 | 2009 | 2008 | |||||||||||||
KCS | ||||||||||||||||
Other debt obligations | $ | 0.2 | $ | 0.2 | $ | 0.6 | $ | 0.2 | ||||||||
KCSR | ||||||||||||||||
Revolving credit facility, variable interest rate, 2.579% at December 31, 2008, due 2009 | 100.0 | 120.0 | ||||||||||||||
Term loans, variable interest rate, 3.738% at December 31, 2008, due 2009 | 313.9 | 317.1 | ||||||||||||||
91/2% senior notes | — | 200.0 | ||||||||||||||
Revolving credit facility, variable interest rate, 1.510% at December 31, 2009, due 2011 | 40.0 | 100.0 | ||||||||||||||
Term loans, variable interest rate, 1.959% at December 31, 2009, due 2013 | 310.6 | 313.9 | ||||||||||||||
71/2% senior notes, due 2009 | 200.0 | 200.0 | — | 200.0 | ||||||||||||
13.0% senior notes, due 2013 | 168.1 | — | 171.2 | 168.1 | ||||||||||||
8.0% senior notes, due 2015 | 275.0 | — | 275.0 | 275.0 | ||||||||||||
Capital lease obligations, due serially to 2017 | 12.1 | 7.6 | 11.0 | 12.1 | ||||||||||||
Other debt obligations | 11.7 | 12.3 | 11.8 | 11.7 | ||||||||||||
Tex-Mex | ||||||||||||||||
RRIF loan, 4.29%, due serially to 2030 | 46.7 | 48.0 | 45.3 | 46.7 | ||||||||||||
KCSM | ||||||||||||||||
Revolving credit facility, variable interest rate, due 2011 | — | 20.0 | ||||||||||||||
Term loan, variable interest rate, 2.096% at December 31, 2008, due 2012 | 30.0 | 30.0 | ||||||||||||||
Term loan, variable interest rate, due 2012 | — | 30.0 | ||||||||||||||
93/8% senior notes, due 2012 | 460.0 | 460.0 | 460.0 | 460.0 | ||||||||||||
75/8% senior notes, due 2013 | 175.0 | 175.0 | 175.0 | 175.0 | ||||||||||||
73/8% senior notes, due 2014 | 165.0 | 165.0 | 165.0 | 165.0 | ||||||||||||
5.737% locomotive financing agreement | 70.3 | — | ||||||||||||||
6.195% locomotive financing agreement | 51.3 | — | ||||||||||||||
121/2% senior notes, due 2016 | 189.7 | — | ||||||||||||||
5.737% financing agreement | 65.5 | 70.3 | ||||||||||||||
6.195% financing agreement | 47.8 | 51.3 | ||||||||||||||
Capital lease obligations, due serially to 2012 | 6.8 | 0.7 | 5.0 | 6.8 | ||||||||||||
Other debt obligations | 6.5 | — | ||||||||||||||
Total | 2,086.1 | 1,755.9 | 1,980.0 | 2,086.1 | ||||||||||||
Less: Debt due within one year | 637.4 | 650.9 | 68.1 | 637.4 | ||||||||||||
Long-term debt | $ | 1,448.7 | $ | 1,105.0 | $ | 1,911.9 | $ | 1,448.7 | ||||||||
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78
69
79
70
Capital Leases | Capital Leases | Operating Leases | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long- | Minimum | Net | Operating Leases | Long- | Minimum | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term | Lease | Less | Present | Total | Southern | Third | Term | Lease | Less | Present | Total | Southern | Third | |||||||||||||||||||||||||||||||||||||||||||||||||||
Years | Debt | Payments | Interest | Value | Debt | Capital | Party | Total | Debt | Payments | Interest | Value | Debt | Capital | Party | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
2009 | $ | 634.7 | $ | 4.1 | $ | 1.4 | $ | 2.7 | $ | 637.4 | $ | 21.3 | $ | 125.7 | $ | 147.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
2010 | 9.8 | 3.7 | 1.2 | 2.5 | 12.3 | 20.6 | 117.6 | 138.2 | $ | 65.8 | $ | 3.5 | $ | 1.2 | $ | 2.3 | $ | 68.1 | $ | 20.2 | $ | 126.4 | $ | 146.6 | ||||||||||||||||||||||||||||||||||||||||
2011 | 9.8 | 3.8 | 1.0 | 2.8 | 12.6 | 19.9 | 114.0 | 133.9 | 14.2 | 3.8 | 1.0 | 2.8 | 17.0 | 19.8 | 119.9 | 139.7 | ||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 499.9 | 3.9 | 0.8 | 3.1 | 503.0 | 15.1 | 93.1 | 108.2 | 474.4 | 3.9 | 0.8 | 3.1 | 477.5 | 14.8 | 98.0 | 112.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 353.0 | 2.0 | 0.6 | 1.4 | 354.4 | 13.3 | 85.7 | 99.0 | 658.5 | 2.0 | 0.6 | 1.4 | 659.9 | 13.2 | 88.8 | 102.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 176.3 | 2.1 | 0.5 | 1.6 | 177.9 | 12.5 | 84.8 | 97.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | 560.0 | 7.3 | 0.9 | 6.4 | 566.4 | 82.2 | 506.0 | 588.2 | 574.8 | 5.3 | 0.5 | 4.8 | 579.6 | 69.7 | 436.1 | 505.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,067.2 | $ | 24.8 | $ | 5.9 | $ | 18.9 | $ | 2,086.1 | $ | 172.4 | $ | 1,042.1 | $ | 1,214.5 | $ | 1,964.0 | $ | 20.6 | $ | 4.6 | $ | 16.0 | $ | 1,980.0 | $ | 150.2 | $ | 954.0 | $ | 1,104.2 | ||||||||||||||||||||||||||||||||
80
71
Note 8. | Income Taxes |
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Current: | ||||||||||||||||||||||||
Federal | $ | 0.9 | $ | — | $ | 4.0 | $ | (1.1 | ) | $ | 0.9 | $ | — | |||||||||||
State and local | (0.2 | ) | 0.8 | 0.4 | 1.3 | (0.2 | ) | 0.8 | ||||||||||||||||
Foreign | — | — | — | 3.0 | — | — | ||||||||||||||||||
Total current | 0.7 | 0.8 | 4.4 | 3.2 | 0.7 | 0.8 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
Federal | 40.8 | 33.2 | 12.7 | 35.4 | 40.8 | 33.2 | ||||||||||||||||||
State and local | 7.9 | 2.4 | 7.2 | 2.1 | 7.9 | 2.4 | ||||||||||||||||||
Foreign | 15.1 | 30.7 | 21.1 | (6.1 | ) | 15.1 | 30.7 | |||||||||||||||||
Total deferred | 63.8 | 66.3 | 41.0 | 31.4 | 63.8 | 66.3 | ||||||||||||||||||
Total income tax expense | $ | 64.5 | $ | 67.1 | $ | 45.4 | $ | 34.6 | $ | 64.5 | $ | 67.1 | ||||||||||||
81
2008 | 2007 | 2009 | 2008 | |||||||||||||
Liabilities: | ||||||||||||||||
Depreciation | $ | 545.6 | $ | 533.5 | $ | 579.7 | $ | 545.6 | ||||||||
Investments | 71.0 | 73.0 | 74.0 | 71.0 | ||||||||||||
Concession rights | 152.5 | 199.7 | 154.6 | 152.5 | ||||||||||||
Other, net | 8.5 | 9.8 | 16.7 | 8.5 | ||||||||||||
Gross deferred tax liabilities | 777.6 | 816.0 | 825.0 | 777.6 | ||||||||||||
Assets: | ||||||||||||||||
Loss carryovers | (284.5 | ) | (336.3 | ) | (276.5 | ) | (284.5 | ) | ||||||||
Book reserves not currently deductible for tax | (99.3 | ) | (146.7 | ) | (124.6 | ) | (99.3 | ) | ||||||||
Vacation accrual | (3.7 | ) | (3.9 | ) | (3.6 | ) | (3.7 | ) | ||||||||
Other, net | (19.8 | ) | (16.7 | ) | (28.6 | ) | (19.8 | ) | ||||||||
Gross deferred tax assets before valuation allowance | (407.3 | ) | (503.6 | ) | (433.3 | ) | (407.3 | ) | ||||||||
Valuation allowance on loss carryovers | 22.9 | 8.9 | 23.7 | 22.9 | ||||||||||||
Gross deferred tax assets | (384.4 | ) | (494.7 | ) | (409.6 | ) | (384.4 | ) | ||||||||
Net deferred tax liability | $ | 393.2 | $ | 321.3 | $ | 415.4 | $ | 393.2 | ||||||||
72
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Income tax expense using the Statutory rate in effect | $ | 87.0 | $ | 77.5 | $ | 54.1 | ||||||||||||||||||
Income tax expense using the statutory rate in effect | $ | 36.3 | $ | 87.0 | $ | 77.5 | ||||||||||||||||||
Tax effect of: | ||||||||||||||||||||||||
Permanent items | 3.3 | 2.1 | 1.0 | 2.2 | 3.3 | 2.1 | ||||||||||||||||||
State and local income tax provision, net | 2.8 | 2.1 | 3.9 | 1.8 | 2.8 | 2.1 | ||||||||||||||||||
Tax credits | (2.5 | ) | (2.9 | ) | (1.8 | ) | (1.9 | ) | (2.5 | ) | (2.9 | ) | ||||||||||||
Uncertain tax positions | (4.3 | ) | — | (2.8 | ) | — | (4.3 | ) | — | |||||||||||||||
Difference between U.S. and foreign tax rate | (8.5 | ) | (9.0 | ) | (3.1 | ) | (5.2 | ) | (8.5 | ) | (9.0 | ) | ||||||||||||
Foreign exchange and inflation adjustments | (12.1 | ) | 7.4 | 12.5 | 12.2 | (27.4 | ) | (5.6 | ) | |||||||||||||||
Inflation on foreign loss carryforwards | (15.3 | ) | (13.0 | ) | (17.4 | ) | ||||||||||||||||||
Change in valuation allowances | 14.0 | — | — | 0.8 | 14.0 | — | ||||||||||||||||||
Change in Mexican tax law | (11.1 | ) | — | — | ||||||||||||||||||||
Other, net | 0.1 | 2.9 | (1.0 | ) | (0.5 | ) | 0.1 | 2.9 | ||||||||||||||||
Income tax expense | $ | 64.5 | $ | 67.1 | $ | 45.4 | $ | 34.6 | $ | 64.5 | $ | 67.1 | ||||||||||||
Effective tax rate | 25.9 | % | 30.3 | % | 29.4 | % |
82
73
2008 | 2007 | 2009 | 2008 | |||||||||||||
Balance at January 1, | $ | 32.6 | $ | 26.3 | $ | 2.1 | $ | 32.6 | ||||||||
Additions based on tax positions related to the current year | — | — | — | — | ||||||||||||
Additions for tax positions of prior years | 0.9 | 7.9 | — | 0.9 | ||||||||||||
Reductions for tax positions of prior years | (18.5 | ) | (1.6 | ) | — | (18.5 | ) | |||||||||
Settlements | (12.9 | ) | — | — | (12.9 | ) | ||||||||||
Balance at December 31, | $ | 2.1 | $ | 32.6 | $ | 2.1 | $ | 2.1 | ||||||||
83
74
Note 9. | Stockholders’ Equity |
Shares | Shares | |||||||||||||||||||||||
Authorized | Shares Issued | Authorized | Shares Issued | |||||||||||||||||||||
2008 and 2007 | 2008 | 2007 | 2009 and 2008 | 2009 | 2008 | |||||||||||||||||||
$25 par, 4% noncumulative, preferred stock | 840,000 | 649,736 | 649,736 | 840,000 | 649,736 | 649,736 | ||||||||||||||||||
$1 par, preferred stock | 2,000,000 | — | — | 2,000,000 | — | — | ||||||||||||||||||
$1 par, series A, preferred stock | 150,000 | — | — | 150,000 | — | — | ||||||||||||||||||
$1 par, series B convertible, preferred stock | 1,000,000 | — | — | 1,000,000 | — | — | ||||||||||||||||||
$1 par, series C redeemable cumulative convertible perpetual preferred stock | 400,000 | — | 400,000 | 400,000 | — | — | ||||||||||||||||||
$1 par, series D cumulative convertible perpetual preferred stock | 210,000 | 210,000 | 210,000 | 210,000 | 210,000 | 210,000 | ||||||||||||||||||
$.01 par, common stock | 400,000,000 | 106,252,860 | 92,863,585 | 400,000,000 | 110,583,068 | 106,252,860 |
2008 | 2007 | 2009 | 2008 | |||||||||||||
$25 par, 4% noncumulative, preferred stock | 242,170 | 242,170 | 242,170 | 242,170 | ||||||||||||
$1 par, series C redeemable cumulative convertible perpetual preferred stock | — | 400,000 | ||||||||||||||
$1 par, series D cumulative convertible perpetual preferred stock | 209,995 | 210,000 | 209,995 | 209,995 | ||||||||||||
$.01 par, common stock | 91,463,762 | 76,975,507 | 96,213,346 | 91,463,762 |
84
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Balance at beginning of year | 15,888,078 | 16,943,252 | 17,957,035 | 14,789,098 | 15,888,078 | 16,943,252 | ||||||||||||||||||
Shares issued for preferred stock dividend | — | (378,667 | ) | — | — | — | (378,667 | ) | ||||||||||||||||
Shares issued to fund stock option exercises | (1,065,724 | ) | (84,528 | ) | (617,107 | ) | (359,575 | ) | (1,065,724 | ) | (84,528 | ) | ||||||||||||
Employee stock purchase plan shares issued | (91,326 | ) | (116,663 | ) | (109,644 | ) | ||||||||||||||||||
Employee stock purc hase plan shares issued | (71,699 | ) | (91,326 | ) | (116,663 | ) | ||||||||||||||||||
Nonvested shares issued | (225,873 | ) | (563,112 | ) | (428,143 | ) | (107,365 | ) | (225,873 | ) | (563,112 | ) | ||||||||||||
Nonvested shares forfeited | 283,943 | 87,796 | 141,111 | 119,263 | 283,943 | 87,796 | ||||||||||||||||||
Balance at end of year | 14,789,098 | 15,888,078 | 16,943,252 | 14,369,722 | 14,789,098 | 15,888,078 | ||||||||||||||||||
75
85
76
Note 10. | Share-Based Compensation |
86
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||
Expected volatility | 32.28 | % | 34.17 | % | 37.84 | % | 42.86 | % | 32.28 | % | 34.17 | % | ||||||||||||
Risk-free interest rate | 3.29 | % | 4.70 | % | 4.96 | % | 1.66 | % | 3.29 | % | 4.70 | % | ||||||||||||
Expected term(years) | 7.50 | 7.50 | 6.83 | 7.50 | 7.50 | 7.50 | ||||||||||||||||||
Weighted-average grant date fair value of stock options granted | $ | 18.33 | $ | 16.04 | $ | 12.62 | $ | 6.45 | $ | 18.33 | $ | 16.04 |
77
Weighted- | Weighted- | Weighted- | Weighted- | |||||||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||||||
Exercise | Remaining | Aggregate | Exercise | Remaining | Aggregate | |||||||||||||||||||||||||||
Number of | Price | Contractual | Intrinsic | Number of | Price | Contractual | Intrinsic | |||||||||||||||||||||||||
Shares | per Share | Term | Value | Shares | per Share | Term | Value | |||||||||||||||||||||||||
In years | In millions | In years | In millions | |||||||||||||||||||||||||||||
Options outstanding at December 31, 2005 | 3,707,393 | $ | 9.11 | |||||||||||||||||||||||||||||
Granted | 90,800 | 26.03 | ||||||||||||||||||||||||||||||
Exercised | (627,907 | ) | 10.83 | |||||||||||||||||||||||||||||
Forfeited or expired | (229,954 | ) | 12.77 | |||||||||||||||||||||||||||||
Options outstanding at December 31, 2006 | 2,940,332 | 8.98 | 2,940,332 | $ | 8.98 | |||||||||||||||||||||||||||
Granted | 32,500 | 33.78 | 32,500 | 33.78 | ||||||||||||||||||||||||||||
Exercised | (95,907 | ) | 6.14 | (95,907 | ) | 6.14 | ||||||||||||||||||||||||||
Forfeited or expired | (19,162 | ) | 20.95 | (19,162 | ) | 20.95 | ||||||||||||||||||||||||||
Options outstanding at December 31, 2007 | 2,857,763 | 9.28 | 2,857,763 | 9.28 | ||||||||||||||||||||||||||||
Granted | 15,380 | 43.15 | 15,380 | 43.15 | ||||||||||||||||||||||||||||
Exercised | (1,094,184 | ) | 7.79 | (1,094,184 | ) | 7.79 | ||||||||||||||||||||||||||
Forfeited or expired | (91,344 | ) | 17.99 | (91,344 | ) | 17.99 | ||||||||||||||||||||||||||
Options outstanding at December 31, 2008 | 1,687,615 | $ | 10.08 | 2.90 | $ | 15.1 | 1,687,615 | 10.08 | ||||||||||||||||||||||||
Granted | 8,000 | 13.52 | ||||||||||||||||||||||||||||||
Exercised | (359,623 | ) | 8.26 | |||||||||||||||||||||||||||||
Forfeited or expired | (34,137 | ) | 23.65 | |||||||||||||||||||||||||||||
Vested and expected to vest at December 31, 2008 | 1,681,100 | $ | 10.00 | 2.88 | $ | 15.2 | ||||||||||||||||||||||||||
Options outstanding at December 31, 2009 | 1,301,855 | $ | 10.25 | 1.99 | $ | 30.0 | ||||||||||||||||||||||||||
Exercisable at December 31, 2008 | 1,588,735 | $ | 8.80 | 2.58 | $ | 16.3 | ||||||||||||||||||||||||||
Vested and expected to vest at December 31, 2009 | 1,297,665 | $ | 10.18 | 1.97 | $ | 30.0 | ||||||||||||||||||||||||||
Exercisable at December 31, 2009 | 1,245,975 | $ | 9.24 | 1.76 | $ | 30.0 | ||||||||||||||||||||||||||
87
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Aggregate grant-date fair value of stock options vested | $ | 1.2 | $ | 0.5 | $ | 0.7 | $ | 0.2 | $ | 1.2 | $ | 0.5 | ||||||||||||||||
Intrinsic value of stock options exercised | 12.3 | 2.7 | 11.4 | 5.9 | 37.9 | 2.9 | ||||||||||||||||||||||
Cash received from option exercises | 8.3 | 0.6 | 6.7 | 3.0 | 8.3 | 0.6 |
78
Weighted- | Weighted- | |||||||||||||||||||||||
Average Grant | Aggregate | Average Grant | Aggregate | |||||||||||||||||||||
Number of | Date | Intrinsic | Number of | Date | Intrinsic | |||||||||||||||||||
Shares | Fair Value | Value | Shares | Fair Value | Value | |||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||
Nonvested stock at December 31, 2005 | 392,151 | $ | 20.57 | |||||||||||||||||||||
Granted | 421,002 | 25.73 | ||||||||||||||||||||||
Vested | (58,469 | ) | 20.17 | |||||||||||||||||||||
Forfeited | (141,111 | ) | 22.33 | |||||||||||||||||||||
Nonvested stock at December 31, 2006 | 613,573 | 23.74 | 613,573 | $ | 23.74 | |||||||||||||||||||
Granted | 570,464 | 33.26 | 570,464 | 33.26 | ||||||||||||||||||||
Vested | (81,613 | ) | 24.86 | (81,613 | ) | 24.86 | ||||||||||||||||||
Forfeited | (87,796 | ) | 26.05 | (87,796 | ) | 26.05 | ||||||||||||||||||
Nonvested stock at December 31, 2007 | 1,014,628 | 28.80 | 1,014,628 | 28.80 | ||||||||||||||||||||
Granted | 232,551 | 37.95 | 232,551 | 37.95 | ||||||||||||||||||||
Vested | (134,979 | ) | 30.50 | (134,979 | ) | 30.50 | ||||||||||||||||||
Forfeited | (283,943 | ) | 26.91 | (283,943 | ) | 26.91 | ||||||||||||||||||
Nonvested stock at December 31, 2008 | 828,257 | $ | 31.74 | $ | 15.8 | 828,257 | 31.74 | |||||||||||||||||
Granted | 116,130 | 18.49 | ||||||||||||||||||||||
Vested | (105,078 | ) | 31.32 | |||||||||||||||||||||
Forfeited | (119,263 | ) | 30.37 | |||||||||||||||||||||
Nonvested stock at December 31, 2009 | 720,046 | $ | 29.89 | $ | 24.0 | |||||||||||||||||||
88
79
Weighted-Average | Weighted-Average | |||||||||||||||
Target Number of | Grant Date | Target Number of | Grant Date | |||||||||||||
Shares* | Fair Value | Shares* | Fair Value | |||||||||||||
Nonvested stock, at December 31, 2006 | — | — | — | $ | — | |||||||||||
Granted | 504,638 | 30.77 | 504,638 | 30.77 | ||||||||||||
Vested | — | — | — | — | ||||||||||||
Forfeited | (27,000 | ) | 29.82 | (27,000 | ) | 29.82 | ||||||||||
Nonvested stock, at December 31, 2007 | 477,638 | 30.82 | 477,638 | 30.82 | ||||||||||||
Granted | 83,229 | 37.82 | 83,229 | 37.82 | ||||||||||||
Vested | (46,988 | ) | 30.13 | (46,988 | ) | 30.13 | ||||||||||
Forfeited | (127,999 | ) | 29.93 | (127,999 | ) | 29.93 | ||||||||||
Nonvested stock, at December 31, 2008 | 385,880 | $ | 32.71 | 385,880 | 32.71 | |||||||||||
Granted | 5,642 | 18.67 | ||||||||||||||
Vested | (47,609 | ) | 30.75 | |||||||||||||
Forfeited | (38,318 | ) | 33.36 | |||||||||||||
Nonvested stock, at December 31, 2009 | 305,595 | $ | 32.67 | |||||||||||||
* | The performance shares earned in 2008 and 2007 were |
80
89
Offering Date | Exercise Date | Received | ||||||||||||||||||||||
Purchase | Shares | Date | Purchase | Shares | from | |||||||||||||||||||
Date | Price | Subscribed | Issued | Price | Issued | Employees(i) | ||||||||||||||||||
In millions | ||||||||||||||||||||||||
October 31, | ||||||||||||||||||||||||
Twentieth offering | 2008 | $ | 26.78 | 103,876 | — | $ | — | — | $ | — | ||||||||||||||
October 31, | February 5, | |||||||||||||||||||||||
Nineteenth offering | 2007 | 34.69 | 83,461 | 2009 | 16.79 | 71,830 | 1.2 | |||||||||||||||||
October 31, | January 24, | |||||||||||||||||||||||
Eighteenth offering | 2006 | 25.97 | 101,737 | 2008 | 25.97 | 89,739 | 2.3 |
Offering Date | Exercise Date | Received | ||||||||||||||||
Purchase | Date | Purchase | Shares | from | ||||||||||||||
Price | Issued | Price | Issued | Employees(i) | ||||||||||||||
In millions | ||||||||||||||||||
2010 offering | $ | 29.63 | — | $ | — | — | $ | — | ||||||||||
2009 offering | 26.78 | February 5, 2010 | 26.78 | 81,692 | 2.2 | |||||||||||||
2008 offering | 34.69 | February 5, 2009 | 16.79 | 71,830 | 1.2 |
(i) | Represents amounts received from employees through payroll deductions for share purchases under applicable offering. |
Twentieth | Nineteenth | Eighteenth | 2010 | 2009 | 2008 | |||||||||||||||||||
Offering | Offering | Offering | Offering | Offering | Offering | |||||||||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||
Expected volatility | 66 | % | 32 | % | 32 | % | 34 | % | 66 | % | 32 | % | ||||||||||||
Risk free interest rate | 1.38 | % | 4.10 | % | 4.99 | % | 0.12 | % | 1.38 | % | 4.10 | % | ||||||||||||
Expected life(years) | 1 | 1 | 1 | 0.5 | 1.0 | 1.0 | ||||||||||||||||||
Fair value at grant date | $ | 10.56 | $ | 9.32 | $ | 7.15 | $ | 6.49 | $ | 10.56 | $ | 9.32 |
Note 11. | Profit Sharing and Other Postretirement Benefits |
9081
Health and Welfare | Mexico Retirement Benefit | Health and Welfare | Mexico Post-Employment Benefit | |||||||||||||||||||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2008 | 2007 | 2006 | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 1.4 | $ | 1.4 | $ | 1.7 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 2.5 | $ | 1.9 | $ | 2.0 | ||||||||||||||||||||||||
Interest cost | 0.4 | 0.4 | 0.5 | 1.2 | 0.9 | 1.0 | 0.3 | 0.4 | 0.4 | 1.4 | 1.4 | 1.2 | ||||||||||||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Actuarial (gain) loss(i) | 0.2 | 0.1 | (0.7 | ) | — | (0.5 | ) | (2.6 | ) | (0.2 | ) | 0.2 | 0.1 | (3.6 | ) | 1.0 | (1.0 | ) | ||||||||||||||||||||||||||||||
Foreign currency (gain) loss | — | — | — | (2.9 | ) | — | — | — | — | — | 0.7 | (3.8 | ) | — | ||||||||||||||||||||||||||||||||||
Prior service credit(ii) | (0.3 | ) | (0.3 | ) | (0.3 | ) | — | — | — | (0.3 | ) | (0.3 | ) | (0.3 | ) | — | — | — | ||||||||||||||||||||||||||||||
Net periodic cost (benefit) recognized | $ | 0.4 | $ | 0.3 | $ | (0.4 | ) | $ | (0.3 | ) | $ | 1.8 | $ | 0.1 | $ | (0.1 | ) | $ | 0.4 | $ | 0.3 | $ | 1.0 | $ | 0.5 | $ | 2.2 | |||||||||||||||||||||
(i) | Net benefit costs above do not include a component for the amortization of actuarial gains or losses as the Company’s policy is to recognize such gains and losses immediately. | |
(ii) | During 2005, the Company revised its medical plan to exclude prescription drug coverage available under Medicare part D. This negative plan amendment generated an unrecognized prior service benefit of $2.3 million which is being amortized over the estimated remaining life of the affected participants of 9.5 years. |
Health and Welfare | Mexico Retirement Benefit | Health and Welfare | Mexico Post-Employment Benefit | |||||||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 7.1 | $ | 7.2 | $ | 14.3 | $ | 12.1 | $ | 7.0 | $ | 7.1 | $ | 16.0 | $ | 18.2 | ||||||||||||||||
Service cost | 0.1 | 0.1 | 1.4 | 1.4 | 0.1 | 0.1 | 2.5 | 1.9 | ||||||||||||||||||||||||
Interest cost | 0.4 | 0.4 | 1.2 | 0.9 | 0.3 | 0.4 | 1.4 | 1.4 | ||||||||||||||||||||||||
Actuarial (gain) loss | 0.1 | 0.1 | — | (0.5 | ) | (0.3 | ) | 0.1 | (3.6 | ) | 1.0 | |||||||||||||||||||||
Foreign currency (gain) loss | — | — | (2.9 | ) | — | — | — | 0.7 | (3.8 | ) | ||||||||||||||||||||||
Benefits paid, net of retiree contributions(i) | (0.7 | ) | (0.7 | ) | (0.3 | ) | (0.9 | ) | (0.7 | ) | (0.7 | ) | (1.1 | ) | (1.5 | ) | ||||||||||||||||
Prior service cost | — | — | (1.2 | ) | 1.3 | — | — | — | (1.2 | ) | ||||||||||||||||||||||
Benefit obligation at end of year | 7.0 | 7.1 | 12.5 | 14.3 | 6.4 | 7.0 | 15.9 | 16.0 | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 0.5 | 0.5 | 0.3 | 0.5 | ||||||||||||||||||||||||||||
Actual return on plan assets | — | 0.1 | — | — | ||||||||||||||||||||||||||||
Benefits paid, net of contributions(i) | (0.2 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | 0.3 | 0.5 | 0.1 | 0.3 | ||||||||||||||||||||||||||||
Funded status | $ | (6.7 | ) | $ | (6.6 | ) | $ | (12.5 | ) | $ | (14.3 | ) | $ | (6.3 | ) | $ | (6.7 | ) | $ | (15.9 | ) | $ | (16.0 | ) | ||||||||
(i) | Benefits paid reflected in the reconciliation of the benefit obligation include both medical and life insurance benefits, whereas benefits paid reflected in the reconciliation of the funded status include only life insurance benefits. Plan assets relate only to life insurance benefits. Medical benefits are funded as obligations become due. |
9182
Health and Welfare | Mexico Retirement Benefit | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Discount rate (U.S. and Mexico) | 6.00 | % | 6.00 | % | 8.00 | % | 8.00 | % | ||||||||
Rate of compensation increase | n/a | n/a | 4.50 | % | 4.50 | % |
Mexico Post-Employment | ||||||||||||||||
Health and Welfare | Benefit | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Discount rate (U.S. and Mexico) | 5.25 | % | 6.00 | % | 8.50 | % | 8.00 | % | ||||||||
Rate of compensation increase | n/a | n/a | 4.50 | % | 4.50 | % |
Health and Welfare | Mexico Retirement Benefit | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Discount rate | 6.00 | % | 5.75 | % | 8.00 | % | 8.00 | % | ||||||||
Expected long-term rate of return on plan assets | 3.00 | % | 3.00 | % | n/a | n/a | ||||||||||
Rate of compensation increase | n/a | n/a | 4.50 | % | 4.50 | % |
Mexico Post- | ||||||||||||||||
Employment | ||||||||||||||||
Health and Welfare | Benefit | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Discount rate | 6.00 | % | 6.00 | % | 8.50 | % | 8.00 | % | ||||||||
Expected long-term rate of return on plan assets | 3.00 | % | 3.00 | % | n/a | n/a | ||||||||||
Rate of compensation increase | n/a | n/a | 4.50 | % | 4.50 | % |
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Health care trend rate for next year | 8.00 | % | 8.00 | % | 9.00 | % | 7.50 | % | 8.00 | % | 8.00 | % | ||||||||||||
Ultimate trend rate | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | ||||||||||||
Year that rate reaches ultimate rate | 2015 | 2014 | 2010 | 2015 | 2015 | 2014 |
Mexico | Mexico | |||||||||||||||
Health and | Retirement | Health and | Post-Employment | |||||||||||||
Year | Welfare | Benefit | Welfare | Benefit | ||||||||||||
2009 | $ | 0.8 | $ | 0.4 | ||||||||||||
2010 | 0.8 | 0.4 | $ | 0.7 | $ | 0.6 | ||||||||||
2011 | 0.8 | 0.3 | 0.8 | 0.6 | ||||||||||||
2012 | 0.8 | 0.6 | 0.8 | 0.6 | ||||||||||||
2013 | 0.8 | 1.1 | 0.7 | 0.6 | ||||||||||||
2014 - 2018 | 2.9 | 10.7 | ||||||||||||||
2014 | 0.6 | 0.6 | ||||||||||||||
2015 - 2019 | 2.5 | 3.6 |
9283
Note 12. | Commitments and Contingencies |
84
93
2008 | 2007 | 2009 | 2008 | |||||||||||||
Balance at beginning of year | $ | 90.0 | $ | 117.4 | $ | 90.7 | $ | 90.0 | ||||||||
Accruals, net (includes the impact of actuarial studies) | 16.0 | 25.1 | 7.4 | 16.0 | ||||||||||||
Payments | (15.3 | ) | (52.5 | ) | (11.2 | ) | (15.3 | ) | ||||||||
Balance at end of year | $ | 90.7 | $ | 90.0 | $ | 86.9 | $ | 90.7 | ||||||||
9485
95
86
87
96
97
Note 13. | Settlement Agreement with TMM |
88
Note | Derivative Instruments |
9889
Fourth | Third | Second | First | |||||||||||||
In millions, except per share amounts | ||||||||||||||||
2008 | ||||||||||||||||
Revenues | $ | 423.8 | $ | 491.5 | $ | 486.2 | $ | 450.6 | ||||||||
Operating income | 91.2 | 111.0 | 104.6 | 83.4 | ||||||||||||
Net income | 39.2 | 51.6 | 55.4 | 37.7 | ||||||||||||
Per share data: | ||||||||||||||||
Basic earnings per common share | $ | 0.40 | $ | 0.55 | $ | 0.64 | $ | 0.43 | ||||||||
Diluted earnings per common share | 0.40 | 0.52 | 0.56 | 0.39 | ||||||||||||
Dividends per share: | ||||||||||||||||
$25 par preferred stock | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | ||||||||
$1 par series C preferred stock | — | — | 5.31 | 5.31 | ||||||||||||
$1 par series D preferred stock | 12.81 | 12.81 | 12.81 | 12.81 | ||||||||||||
Stock price ranges: | ||||||||||||||||
$25 par preferred: | ||||||||||||||||
— High | $ | 21.90 | $ | 24.26 | $ | 23.60 | $ | 23.76 | ||||||||
— Low | 18.04 | 20.00 | 22.25 | 20.95 | ||||||||||||
Common: | ||||||||||||||||
— High | $ | 43.61 | $ | 55.00 | $ | 50.66 | $ | 41.16 | ||||||||
— Low | 16.59 | 40.52 | 39.48 | 29.50 | ||||||||||||
2007 | ||||||||||||||||
Revenues | $ | 460.3 | $ | 444.1 | $ | 427.1 | $ | 411.3 | ||||||||
Operating income | 108.7 | 98.2 | 83.1 | 72.4 | ||||||||||||
Net income | 54.7 | 46.7 | 30.2 | 22.2 | ||||||||||||
Per share data: | ||||||||||||||||
Basic earnings per common share | $ | 0.66 | $ | 0.55 | $ | 0.33 | $ | 0.22 | ||||||||
Diluted earnings per common share | 0.56 | 0.48 | 0.30 | 0.21 | ||||||||||||
Dividends per share: | ||||||||||||||||
$25 par preferred stock | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | ||||||||
$1 par series C preferred stock(i) | 5.31 | 5.31 | 5.31 | 21.60 | ||||||||||||
$1 par series D preferred stock(i) | 12.81 | 12.81 | 12.81 | 52.24 | ||||||||||||
Stock price ranges: | ||||||||||||||||
$25 par preferred: | ||||||||||||||||
— High | $ | 24.00 | $ | 23.60 | $ | 24.00 | $ | 23.75 | ||||||||
— Low | 21.11 | 23.00 | 22.60 | 22.85 | ||||||||||||
Common: | ||||||||||||||||
— High | $ | 39.39 | $ | 40.94 | $ | 42.50 | $ | 36.35 | ||||||||
— Low | 31.47 | 30.02 | 35.65 | 28.37 |
Asset Derivatives | Liability Derivatives | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate contracts | Other current assets | $ | — | Accounts payable & accrued liabilities | $ | 3.2 | ||||||
Interest rate contracts | Other assets | — | Other non-current liabilities & deferred credits | 1.7 | ||||||||
Total derivatives designated as hedging instruments | $ | — | $ | 4.9 | ||||||||
Location of Gain/ | Amount of Gain/ | |||||||||||||||
(Loss) Recognized in | (Loss) Recognized in | |||||||||||||||
Amount of | Location of Gain/(Loss) | Amount of Gain/(Loss) | Income on Derivative | Income on Derivative | ||||||||||||
Gain/(Loss) | Reclassified from | Reclassified from | (Ineffective Portion | (Ineffective Portion | ||||||||||||
Derivatives in Cash | Recognized in OCI | Accumulated OCI into | Accumulated OCI into | and Amount Excluded | and Amount Excluded | |||||||||||
Flow Hedging | on Derivative | Income (Effective | Income (Effective | from Effectiveness | from Effectiveness | |||||||||||
Relationships | (Effective Portion) | Portion) | Portion) | Testing) | Testing) | |||||||||||
Interest rate contracts | $ | (3.4 | ) | Interest expense | $ | (4.5 | ) | Interest expense | $ | — | ||||||
Fuel swap contracts | 0.9 | Fuel expense | 0.9 | Fuel Expense | (2.0 | ) | ||||||||||
Total | $ | (2.5 | ) | $ | (3.6 | ) | $ | (2.0 | ) | |||||||
Location of Gain/(Loss) | Amount of Gain/(Loss) | |||||
Recognized in Income | Recognized in Income | |||||
Derivatives not Designated as Hedging Instruments | on Derivative | on Derivative | ||||
Fuel swap contracts | Fuel expense | $ | 0.7 | |||
Total | $ | 0.7 | ||||
9990
Note 15. | Quarterly Financial Data (Unaudited) |
Fourth | Third | Second | First | |||||||||||||
In millions, except per share amounts | ||||||||||||||||
2009 | ||||||||||||||||
Revenues | $ | 406.8 | $ | 386.1 | $ | 341.3 | $ | 346.0 | ||||||||
Operating income | 91.9 | 84.4 | 43.4 | 48.5 | ||||||||||||
Net income (loss) | 34.9 | 29.0 | 7.3 | (2.2 | ) | |||||||||||
Net income (loss) attributable to Kansas City Southern and subsidiaries | 34.7 | 28.6 | 6.8 | (2.1 | ) | |||||||||||
Per share data: | ||||||||||||||||
Basic earnings (loss) per common share | $ | 0.33 | $ | 0.27 | $ | 0.07 | $ | (0.08 | ) | |||||||
Diluted earnings (loss) per common share | 0.33 | 0.27 | 0.07 | (0.08 | ) | |||||||||||
Dividends per share: | ||||||||||||||||
$25 par preferred stock | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | ||||||||
$1 par series D preferred stock | 12.81 | 12.81 | — | 25.62 | ||||||||||||
Stock price ranges: | ||||||||||||||||
$25 par preferred: | ||||||||||||||||
— High | $ | 22.90 | $ | 21.00 | $ | 22.00 | $ | 21.00 | ||||||||
— Low | 19.55 | 17.50 | 17.68 | 14.27 | ||||||||||||
Common: | ||||||||||||||||
— High | $ | 34.57 | $ | 29.19 | $ | 17.98 | $ | 23.54 | ||||||||
— Low | 22.57 | 14.75 | 12.25 | 12.47 | ||||||||||||
2008 | ||||||||||||||||
Revenues | $ | 423.8 | $ | 491.5 | $ | 486.2 | $ | 450.6 | ||||||||
Operating income | 91.2 | 111.0 | 104.6 | 83.4 | ||||||||||||
Net income | 39.2 | 51.7 | 55.5 | 37.8 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 39.2 | 51.6 | 55.4 | 37.7 | ||||||||||||
Per share data: | ||||||||||||||||
Basic earnings per common share | $ | 0.40 | $ | 0.55 | $ | 0.64 | $ | 0.43 | ||||||||
Diluted earnings per common share | 0.40 | 0.52 | 0.56 | 0.39 | ||||||||||||
Dividends per share: | ||||||||||||||||
$25 par preferred stock | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | ||||||||
$1 par series C preferred stock | — | — | 5.31 | 5.31 | ||||||||||||
$1 par series D preferred stock | 12.81 | 12.81 | 12.81 | 12.81 | ||||||||||||
Stock price ranges: | ||||||||||||||||
$25 par preferred: | ||||||||||||||||
— High | $ | 22.20 | $ | 24.50 | $ | 23.60 | $ | 26.00 | ||||||||
— Low | 17.55 | 20.00 | 22.00 | 20.95 | ||||||||||||
Common: | ||||||||||||||||
— High | $ | 44.38 | $ | 55.90 | $ | 50.66 | $ | 41.55 | ||||||||
— Low | 15.71 | 40.05 | 39.01 | 29.00 |
91
Note | Condensed Consolidating Financial Information |
2008 | 2009 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 925.4 | $ | 15.1 | $ | 944.7 | $ | (33.1 | ) | $ | 1,852.1 | $ | — | $ | 753.4 | $ | 17.8 | $ | 739.8 | $ | (30.8 | ) | $ | 1,480.2 | ||||||||||||||||||||||
Operating expenses | 8.1 | 749.9 | 23.7 | 715.4 | (35.2 | ) | 1,461.9 | 4.1 | 602.5 | 18.8 | 619.9 | (33.3 | ) | 1,212.0 | ||||||||||||||||||||||||||||||||||
Operating income (loss) | (8.1 | ) | 175.5 | (8.6 | ) | 229.3 | 2.1 | 390.2 | (4.1 | ) | 150.9 | (1.0 | ) | 119.9 | 2.5 | 268.2 | ||||||||||||||||||||||||||||||||
Equity in net earnings of unconsolidated affiliates | 190.5 | 4.0 | — | 16.7 | (193.2 | ) | 18.0 | 72.3 | 3.2 | — | 17.8 | (85.6 | ) | 7.7 | ||||||||||||||||||||||||||||||||||
Interest income (expense) | 3.8 | (57.8 | ) | 1.6 | (90.2 | ) | 3.7 | (138.9 | ) | (0.2 | ) | (64.8 | ) | 1.6 | (113.5 | ) | 3.2 | (173.7 | ) | |||||||||||||||||||||||||||||
Debt retirement costs | — | (5.6 | ) | — | — | — | (5.6 | ) | — | (5.3 | ) | — | (0.6 | ) | — | (5.9 | ) | |||||||||||||||||||||||||||||||
Foreign exchange loss | — | — | — | (21.0 | ) | — | (21.0 | ) | ||||||||||||||||||||||||||||||||||||||||
Other income (expense) | (1.1 | ) | 6.8 | — | 6.1 | (5.8 | ) | 6.0 | ||||||||||||||||||||||||||||||||||||||||
Foreign exchange gain | — | — | — | 2.1 | — | 2.1 | ||||||||||||||||||||||||||||||||||||||||||
Other income, net | 0.7 | 6.6 | — | 3.6 | (5.7 | ) | 5.2 | |||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and minority interest | 185.1 | 122.9 | (7.0 | ) | 140.9 | (193.2 | ) | 248.7 | ||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | 0.9 | 42.7 | (3.7 | ) | 24.6 | — | 64.5 | |||||||||||||||||||||||||||||||||||||||||
Minority interest | 0.3 | — | — | — | — | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
Income before income taxes and noncontrolling interest | 68.7 | 90.6 | 0.6 | 29.3 | (85.6 | ) | 103.6 | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | 0.7 | 31.3 | 0.4 | 2.2 | — | 34.6 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 183.9 | $ | 80.2 | $ | (3.3 | ) | $ | 116.3 | $ | (193.2 | ) | $ | 183.9 | ||||||||||||||||||||||||||||||||||
Net income | 68.0 | 59.3 | 0.2 | 27.1 | (85.6 | ) | 69.0 | |||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | 1.0 | — | 1.0 | ||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ | 68.0 | $ | 59.3 | $ | 0.2 | $ | 26.1 | $ | (85.6 | ) | $ | 68.0 | |||||||||||||||||||||||||||||||||||
10092
2007 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 807.8 | $ | 37.2 | $ | 928.4 | $ | (30.6 | ) | $ | 1,742.8 | $ | — | $ | 925.4 | $ | 15.1 | $ | 944.7 | $ | (33.1 | ) | $ | 1,852.1 | ||||||||||||||||||||||
Operating expenses | 21.3 | 682.0 | 19.4 | 687.0 | (29.3 | ) | 1,380.4 | 8.1 | 749.9 | 23.7 | 715.4 | (35.2 | ) | 1,461.9 | ||||||||||||||||||||||||||||||||||
Operating income (loss) | (21.3 | ) | 125.8 | 17.8 | 241.4 | (1.3 | ) | 362.4 | (8.1 | ) | 175.5 | (8.6 | ) | 229.3 | 2.1 | 390.2 | ||||||||||||||||||||||||||||||||
Equity in net earnings of unconsolidated affiliates | 180.1 | 15.4 | — | 9.3 | (193.4 | ) | 11.4 | 190.5 | 4.0 | — | 16.7 | (193.2 | ) | 18.0 | ||||||||||||||||||||||||||||||||||
Interest expense | (2.5 | ) | (62.9 | ) | (1.3 | ) | (91.8 | ) | 1.8 | (156.7 | ) | |||||||||||||||||||||||||||||||||||||
Interest income (expense) | 3.8 | (57.8 | ) | 1.6 | (90.2 | ) | 3.7 | (138.9 | ) | |||||||||||||||||||||||||||||||||||||||
Debt retirement costs | — | — | — | (6.9 | ) | — | (6.9 | ) | — | (5.6 | ) | — | — | — | (5.6 | ) | ||||||||||||||||||||||||||||||||
Foreign exchange loss | — | — | — | (0.9 | ) | — | (0.9 | ) | — | — | — | (21.0 | ) | — | (21.0 | ) | ||||||||||||||||||||||||||||||||
Other income (expense) | (0.5 | ) | 5.8 | — | 7.2 | (0.5 | ) | 12.0 | ||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (1.1 | ) | 6.8 | — | 6.1 | (5.8 | ) | 6.0 | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes and minority interest | 155.8 | 84.1 | 16.5 | 158.3 | (193.4 | ) | 221.3 | |||||||||||||||||||||||||||||||||||||||||
Income tax provision | 1.6 | 16.9 | 7.1 | 41.5 | — | 67.1 | ||||||||||||||||||||||||||||||||||||||||||
Minority interest | 0.4 | — | — | — | — | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and noncontrolling interest | 185.1 | 122.9 | (7.0 | ) | 140.9 | (193.2 | ) | 248.7 | ||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 0.9 | 42.7 | (3.7 | ) | 24.6 | — | 64.5 | |||||||||||||||||||||||||||||||||||||||||
Net income | $ | 153.8 | $ | 67.2 | $ | 9.4 | $ | 116.8 | $ | (193.4 | ) | $ | 153.8 | |||||||||||||||||||||||||||||||||||
Net income (loss) | 184.2 | 80.2 | (3.3 | ) | 116.3 | (193.2 | ) | 184.2 | ||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 0.3 | — | — | — | — | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Kansas City Southern and subsidiaries | $ | 183.9 | $ | 80.2 | $ | (3.3 | ) | $ | 116.3 | $ | (193.2 | ) | $ | 183.9 | ||||||||||||||||||||||||||||||||||
2006 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Revenues | $ | — | $ | 789.3 | $ | 10.0 | $ | 881.3 | $ | (20.9 | ) | $ | 1,659.7 | $ | — | $ | 807.8 | $ | 37.2 | $ | 928.4 | $ | (30.6 | ) | $ | 1,742.8 | ||||||||||||||||||||||
Operating expenses | 16.7 | 631.7 | 19.5 | 708.4 | (20.9 | ) | 1,355.4 | 21.3 | 682.0 | 19.4 | 687.0 | (29.3 | ) | 1,380.4 | ||||||||||||||||||||||||||||||||||
Operating income (loss) | (16.7 | ) | 157.6 | (9.5 | ) | 172.9 | — | 304.3 | (21.3 | ) | 125.8 | 17.8 | 241.4 | (1.3 | ) | 362.4 | ||||||||||||||||||||||||||||||||
Equity in net earnings (losses) of unconsolidated affiliates | 130.2 | (1.7 | ) | — | 4.9 | (126.1 | ) | 7.3 | 180.1 | 15.4 | — | 9.3 | (193.4 | ) | 11.4 | |||||||||||||||||||||||||||||||||
Interest expense | (5.7 | ) | (65.1 | ) | (1.7 | ) | (96.1 | ) | 1.4 | (167.2 | ) | |||||||||||||||||||||||||||||||||||||
Interest income (expense) | (2.5 | ) | (62.9 | ) | (1.3 | ) | (91.8 | ) | 1.8 | (156.7 | ) | |||||||||||||||||||||||||||||||||||||
Debt retirement costs | — | (2.2 | ) | — | (2.6 | ) | — | (4.8 | ) | — | — | — | (6.9 | ) | — | (6.9 | ) | |||||||||||||||||||||||||||||||
Foreign exchange loss | — | — | — | (3.7 | ) | — | (3.7 | ) | — | — | — | (0.9 | ) | — | (0.9 | ) | ||||||||||||||||||||||||||||||||
Other income | 0.7 | 10.7 | — | 8.7 | (1.4 | ) | 18.7 | |||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (0.5 | ) | 5.8 | — | 7.2 | (0.5 | ) | 12.0 | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and minority interest | 108.5 | 99.3 | (11.2 | ) | 84.1 | (126.1 | ) | 154.6 | ||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) | (0.7 | ) | 32.1 | (4.3 | ) | 18.3 | — | 45.4 | ||||||||||||||||||||||||||||||||||||||||
Minority interest | 0.3 | — | — | — | — | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
Income before income taxes and noncontrolling interest | 155.8 | 84.1 | 16.5 | 158.3 | (193.4 | ) | 221.3 | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | 1.6 | 16.9 | 7.1 | 41.5 | — | 67.1 | ||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 108.9 | $ | 67.2 | $ | (6.9 | ) | $ | 65.8 | $ | (126.1 | ) | $ | 108.9 | 154.2 | 67.2 | 9.4 | 116.8 | (193.4 | ) | 154.2 | |||||||||||||||||||||||||||
Noncontrolling interest | 0.4 | — | — | — | — | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ | 153.8 | $ | 67.2 | $ | 9.4 | $ | 116.8 | $ | (193.4 | ) | $ | 153.8 | |||||||||||||||||||||||||||||||||||
10193
December 31, 2008 | December 31, 2009 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | $ | 21.9 | $ | 357.5 | $ | 3.4 | $ | 321.2 | $ | (13.3 | ) | $ | 690.7 | $ | 0.5 | $ | 219.1 | $ | 3.4 | $ | 428.8 | $ | (38.0 | ) | $ | 613.8 | ||||||||||||||||||||||
Investments held for operating purposes and affiliate investment | 2,280.4 | 45.2 | 1.8 | 722.8 | (2,989.7 | ) | 60.5 | 1,577.8 | 31.7 | 1.9 | 1,616.0 | (3,180.6 | ) | 46.8 | ||||||||||||||||||||||||||||||||||
Property and equipment, net | — | 1,593.6 | 213.4 | 1,598.8 | — | 3,405.8 | ||||||||||||||||||||||||||||||||||||||||||
Concession assets, net | — | — | — | 1,182.1 | — | 1,182.1 | ||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes | — | — | — | 36.4 | — | 36.4 | ||||||||||||||||||||||||||||||||||||||||||
Property and equipment (including concession assets), net | — | 1,734.1 | 212.4 | 2,800.7 | — | 4,747.2 | ||||||||||||||||||||||||||||||||||||||||||
Other assets | 1.0 | 37.6 | — | 42.4 | (13.8 | ) | 67.2 | 1.3 | 42.0 | — | 90.9 | (62.9 | ) | 71.3 | ||||||||||||||||||||||||||||||||||
Total assets | $ | 2,303.3 | $ | 2,033.9 | $ | 218.6 | $ | 3,903.7 | $ | (3,016.8 | ) | $ | 5,442.7 | $ | 1,579.6 | $ | 2,026.9 | $ | 217.7 | $ | 4,936.4 | $ | (3,281.5 | ) | $ | 5,479.1 | ||||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | $ | 415.1 | $ | 395.3 | $ | 120.7 | $ | 178.1 | $ | (12.9 | ) | $ | 1,096.3 | $ | (455.7 | ) | $ | 567.6 | $ | 124.0 | $ | 211.7 | $ | (36.8 | ) | $ | 410.8 | |||||||||||||||||||||
Long-term debt | 0.2 | 454.1 | 0.6 | 993.8 | — | 1,448.7 | 0.2 | 793.8 | 0.4 | 1,147.5 | (30.0 | ) | 1,911.9 | |||||||||||||||||||||||||||||||||||
Deferred income taxes | (27.5 | ) | 367.7 | 79.4 | 72.8 | — | 492.4 | (27.8 | ) | 423.1 | 79.6 | 92.2 | — | 567.1 | ||||||||||||||||||||||||||||||||||
Other liabilities | 4.0 | 134.3 | 7.5 | 88.5 | (14.2 | ) | 220.1 | 4.1 | 142.0 | 3.0 | 132.7 | (34.1 | ) | 247.7 | ||||||||||||||||||||||||||||||||||
Minority interest | — | 31.4 | — | 273.7 | (31.4 | ) | 273.7 | |||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 1,911.5 | 651.1 | 10.4 | 2,296.8 | (2,958.3 | ) | 1,911.5 | 2,058.8 | 69.0 | 10.7 | 3,069.5 | (3,149.2 | ) | 2,058.8 | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | 31.4 | — | 282.8 | (31.4 | ) | 282.8 | |||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 2,303.3 | $ | 2,033.9 | $ | 218.6 | $ | 3,903.7 | $ | (3,016.8 | ) | $ | 5,442.7 | $ | 1,579.6 | $ | 2,026.9 | $ | 217.7 | $ | 4,936.4 | $ | (3,281.5 | ) | $ | 5,479.1 | ||||||||||||||||||||||
December 31, 2007 | December 31, 2008 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | $ | 24.2 | $ | 268.7 | $ | 3.0 | $ | 405.7 | $ | (55.9 | ) | $ | 645.7 | $ | 21.9 | $ | 354.0 | $ | 3.4 | $ | 319.6 | $ | (13.3 | ) | $ | 685.6 | ||||||||||||||||||||||
Investments held for operating purposes and affiliate investment | 2,100.1 | 436.7 | — | 571.3 | (3,028.8 | ) | 79.3 | 2,280.4 | 45.2 | 1.8 | 722.8 | (2,989.7 | ) | 60.5 | ||||||||||||||||||||||||||||||||||
Property and equipment, net | 0.6 | 1,329.7 | 219.5 | 1,368.5 | (0.5 | ) | 2,917.8 | |||||||||||||||||||||||||||||||||||||||||
Concession assets, net | — | — | — | 1,215.5 | — | 1,215.5 | ||||||||||||||||||||||||||||||||||||||||||
Property and equipment (including concession assets), net | — | 1,593.6 | 213.4 | 2,791.4 | — | 4,598.4 | ||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes | — | — | — | 36.4 | — | 36.4 | ||||||||||||||||||||||||||||||||||||||||||
Other assets | 1.5 | 27.4 | — | 41.0 | — | 69.9 | 1.0 | 37.6 | — | 33.5 | (13.8 | ) | 58.3 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 2,126.4 | $ | 2,062.5 | $ | 222.5 | $ | 3,602.0 | $ | (3,085.2 | ) | $ | 4,928.2 | $ | 2,303.3 | $ | 2,030.4 | $ | 218.6 | $ | 3,903.7 | $ | (3,016.8 | ) | $ | 5,439.2 | ||||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | $ | 355.5 | $ | 428.7 | $ | 111.4 | $ | 234.9 | $ | (31.8 | ) | $ | 1,098.7 | $ | 415.1 | $ | 391.8 | $ | 120.7 | $ | 178.1 | $ | (12.9 | ) | $ | 1,092.8 | ||||||||||||||||||||||
Long-term debt | 0.2 | 207.3 | 0.5 | 897.0 | — | 1,105.0 | 0.2 | 454.1 | 0.6 | 993.8 | — | 1,448.7 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes | 11.9 | 341.1 | 83.0 | 63.1 | — | 499.1 | (27.5 | ) | 367.7 | 79.4 | 72.8 | — | 492.4 | |||||||||||||||||||||||||||||||||||
Other liabilities | 31.6 | 99.2 | 15.7 | 133.6 | (24.0 | ) | 256.1 | 4.0 | 134.3 | 7.5 | 88.5 | (14.2 | ) | 220.1 | ||||||||||||||||||||||||||||||||||
Minority interest | 0.9 | 31.4 | — | 239.8 | (29.1 | ) | 243.0 | |||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 1,726.3 | 954.8 | 11.9 | 2,033.6 | (3,000.3 | ) | 1,726.3 | 1,911.5 | 651.1 | 10.4 | 2,296.8 | (2,958.3 | ) | 1,911.5 | ||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | 31.4 | — | 273.7 | (31.4 | ) | 273.7 | |||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 2,126.4 | $ | 2,062.5 | $ | 222.5 | $ | 3,602.0 | $ | (3,085.2 | ) | $ | 4,928.2 | $ | 2,303.3 | $ | 2,030.4 | $ | 218.6 | $ | 3,903.7 | $ | (3,016.8 | ) | $ | 5,439.2 | ||||||||||||||||||||||
10294
2008 | 2009 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Excluding intercompany activity | $ | (55.9 | ) | $ | 214.6 | $ | (6.2 | ) | $ | 310.3 | $ | (7.1 | ) | $ | 455.7 | $ | 787.6 | $ | (513.0 | ) | $ | 3.4 | $ | 18.1 | $ | (3.2 | ) | $ | 292.9 | |||||||||||||||||||
Intercompany activity | 57.2 | 18.5 | 8.0 | (83.7 | ) | — | — | (855.5 | ) | 773.8 | 2.8 | 78.9 | — | — | ||||||||||||||||||||||||||||||||||
Net cash provided | 1.3 | 233.1 | 1.8 | 226.6 | (7.1 | ) | 455.7 | |||||||||||||||||||||||||||||||||||||||||
Net cash provided (used) | (67.9 | ) | 260.8 | 6.2 | 97.0 | (3.2 | ) | 292.9 | ||||||||||||||||||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (194.6 | ) | (1.5 | ) | (380.4 | ) | — | (576.5 | ) | — | (197.4 | ) | (5.2 | ) | (148.0 | ) | 1.4 | (349.2 | ) | ||||||||||||||||||||||||||||
Proceeds from disposal of property | — | 17.7 | — | 3.2 | — | 20.9 | ||||||||||||||||||||||||||||||||||||||||||
Contribution from NS for MSLLC (net of change in restricted contribution) | — | — | — | 18.5 | — | 18.5 | ||||||||||||||||||||||||||||||||||||||||||
Return of investment | — | — | — | 101.0 | (101.0 | ) | — | |||||||||||||||||||||||||||||||||||||||||
Property investments in MSLLC | — | — | — | (30.4 | ) | — | (30.4 | ) | — | — | — | (22.0 | ) | — | (22.0 | ) | ||||||||||||||||||||||||||||||||
Other investing activities | 0.5 | (108.8 | ) | (0.2 | ) | 95.3 | — | (13.2 | ) | — | 10.9 | (0.9 | ) | (35.4 | ) | 50.2 | 24.8 | |||||||||||||||||||||||||||||||
Net cash provided (used) | 0.5 | (285.7 | ) | (1.7 | ) | (293.8 | ) | — | (580.7 | ) | ||||||||||||||||||||||||||||||||||||||
Net cash used | — | (186.5 | ) | (6.1 | ) | (104.4 | ) | (49.4 | ) | (346.4 | ) | |||||||||||||||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 455.2 | — | 124.9 | — | 580.1 | 0.8 | 51.0 | — | 189.0 | (38.7 | ) | 202.1 | |||||||||||||||||||||||||||||||||||
Repayment of long-term debt | (0.6 | ) | (236.4 | ) | — | (25.8 | ) | — | (262.8 | ) | (0.4 | ) | (285.4 | ) | — | (42.0 | ) | 8.7 | (319.1 | ) | ||||||||||||||||||||||||||||
Proceeds from common stock issuance | 73.9 | — | — | — | — | 73.9 | ||||||||||||||||||||||||||||||||||||||||||
Other financing activities | (1.0 | ) | (15.9 | ) | — | (8.1 | ) | 7.1 | (17.9 | ) | (6.5 | ) | (5.1 | ) | — | (86.8 | ) | 82.6 | (15.8 | ) | ||||||||||||||||||||||||||||
Net cash provided (used) | (1.6 | ) | 202.9 | — | 91.0 | 7.1 | 299.4 | 67.8 | (239.5 | ) | — | 60.2 | 52.6 | (58.9 | ) | |||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net increase | 0.2 | 150.3 | 0.1 | 23.8 | — | 174.4 | ||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) | (0.1 | ) | (165.2 | ) | 0.1 | 52.8 | — | (112.4 | ) | |||||||||||||||||||||||||||||||||||||||
At beginning of year | (0.2 | ) | 27.6 | 0.1 | 28.0 | — | 55.5 | — | 177.9 | 0.2 | 51.8 | — | 229.9 | |||||||||||||||||||||||||||||||||||
At end of year | $ | — | $ | 177.9 | $ | 0.2 | $ | 51.8 | $ | — | $ | 229.9 | $ | (0.1 | ) | $ | 12.7 | $ | 0.3 | $ | 104.6 | $ | — | $ | 117.5 | |||||||||||||||||||||||
10395
2007 | 2008 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Excluding intercompany activity | $ | 12.2 | $ | 42.9 | $ | 28.5 | $ | 297.9 | $ | — | $ | 381.5 | $ | (55.9 | ) | $ | 216.8 | $ | (7.0 | ) | $ | 266.2 | $ | (7.1 | ) | $ | 413.0 | |||||||||||||||||||||
Intercompany activity | 61.7 | 14.7 | (27.9 | ) | (48.5 | ) | — | — | 57.2 | 18.5 | 8.0 | (83.7 | ) | — | — | |||||||||||||||||||||||||||||||||
Net cash provided | 73.9 | 57.6 | 0.6 | 249.4 | — | 381.5 | 1.3 | 235.3 | 1.0 | 182.5 | (7.1 | ) | 413.0 | |||||||||||||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (166.8 | ) | (0.5 | ) | (243.2 | ) | — | (410.5 | ) | — | (308.5 | ) | (0.7 | ) | (224.6 | ) | — | (533.8 | ) | ||||||||||||||||||||||||||||
Contribution from NS for MSLLC (net of change in restricted contribution) | — | — | — | 129.1 | — | 129.1 | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from disposal of property | — | 17.7 | — | 3.2 | — | 20.9 | ||||||||||||||||||||||||||||||||||||||||||
Contribution from NS for MSLLC | — | — | — | 27.0 | — | 27.0 | ||||||||||||||||||||||||||||||||||||||||||
Property investments in MSLLC | — | — | — | (118.0 | ) | — | (118.0 | ) | — | — | — | (30.4 | ) | — | (30.4 | ) | ||||||||||||||||||||||||||||||||
Other investing activities | — | 18.7 | — | 0.2 | — | 18.9 | 0.5 | 2.9 | (0.2 | ) | (24.9 | ) | — | (21.7 | ) | |||||||||||||||||||||||||||||||||
Net cash used | — | (148.1 | ) | (0.5 | ) | (231.9 | ) | — | (380.5 | ) | ||||||||||||||||||||||||||||||||||||||
Net cash provided (used) | 0.5 | (287.9 | ) | (0.9 | ) | (249.7 | ) | — | (538.0 | ) | ||||||||||||||||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long- term debt | — | 105.0 | — | 221.6 | — | 326.6 | — | 455.2 | — | 124.9 | — | 580.1 | ||||||||||||||||||||||||||||||||||||
Repayment of long-term debt | (54.1 | ) | (19.6 | ) | — | (237.6 | ) | — | (311.3 | ) | (0.6 | ) | (236.4 | ) | — | (25.8 | ) | — | (262.8 | ) | ||||||||||||||||||||||||||||
Other financing activities | (20.2 | ) | (3.5 | ) | — | (16.1 | ) | — | (39.8 | ) | (1.0 | ) | (15.9 | ) | — | (8.1 | ) | 7.1 | (17.9 | ) | ||||||||||||||||||||||||||||
Net cash provided (used) | (74.3 | ) | 81.9 | — | (32.1 | ) | — | (24.5 | ) | (1.6 | ) | 202.9 | — | 91.0 | 7.1 | 299.4 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) | (0.4 | ) | (8.6 | ) | 0.1 | (14.6 | ) | — | (23.5 | ) | ||||||||||||||||||||||||||||||||||||||
Net increase | 0.2 | 150.3 | 0.1 | 23.8 | — | 174.4 | ||||||||||||||||||||||||||||||||||||||||||
At beginning of year | 0.2 | 36.2 | — | 42.6 | — | 79.0 | (0.2 | ) | 27.6 | 0.1 | 28.0 | — | 55.5 | |||||||||||||||||||||||||||||||||||
At end of year | $ | (0.2 | ) | $ | 27.6 | $ | 0.1 | $ | 28.0 | $ | — | $ | 55.5 | $ | — | $ | 177.9 | $ | 0.2 | $ | 51.8 | $ | — | $ | 229.9 | |||||||||||||||||||||||
10496
2006 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||
Guarantor | Non-Guarantor | Consolidating | Consolidated | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||||||||||||||||||||||||
Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | Parent | KCSR | Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Excluding intercompany activity | $ | (148.7 | ) | $ | 225.4 | $ | 81.5 | $ | 128.0 | $ | (18.7 | ) | $ | 267.5 | $ | 12.2 | $ | 32.5 | $ | 24.3 | $ | 298.8 | $ | — | $ | 367.8 | ||||||||||||||||||||||
Intercompany activity | 187.7 | (145.3 | ) | (80.5 | ) | 19.4 | 18.7 | — | 61.7 | 14.7 | (27.9 | ) | (48.5 | ) | — | — | ||||||||||||||||||||||||||||||||
Net cash provided | 39.0 | 80.1 | 1.0 | 147.4 | — | 267.5 | 73.9 | 47.2 | (3.6 | ) | 250.3 | — | 367.8 | |||||||||||||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | — | (93.1 | ) | — | (148.7 | ) | — | (241.8 | ) | — | (156.4 | ) | 3.7 | (244.1 | ) | — | (396.8 | ) | ||||||||||||||||||||||||||||||
Proceeds from disposal of property | — | 26.9 | — | 3.1 | — | 30.0 | ||||||||||||||||||||||||||||||||||||||||||
Contribution from NS for MSLLC (net of change in restricted contribution) | — | — | — | 76.5 | 76.5 | |||||||||||||||||||||||||||||||||||||||||||
Contribution from NS for MSLLC | — | — | — | 143.4 | — | 143.4 | ||||||||||||||||||||||||||||||||||||||||||
Property investments in MSLLC | — | — | — | (37.8 | ) | (37.8 | ) | — | — | — | (118.0 | ) | — | (118.0 | ) | |||||||||||||||||||||||||||||||||
Other investing activities | — | 8.2 | — | (1.1 | ) | — | 7.1 | — | 18.7 | — | (14.1 | ) | — | 4.6 | ||||||||||||||||||||||||||||||||||
Net cash used | — | (58.0 | ) | — | (108.0 | ) | — | (166.0 | ) | — | (137.7 | ) | 3.7 | (232.8 | ) | — | (366.8 | ) | ||||||||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long- term debt | — | 257.2 | — | 203.2 | — | 460.4 | — | 105.0 | — | 221.6 | — | 326.6 | ||||||||||||||||||||||||||||||||||||
Repayment of long-term debt | (44.0 | ) | (256.3 | ) | (0.1 | ) | (202.2 | ) | — | (502.6 | ) | (54.1 | ) | (19.6 | ) | — | (237.6 | ) | — | (311.3 | ) | |||||||||||||||||||||||||||
Other financing activities | 4.5 | (7.5 | ) | — | (8.4 | ) | — | (11.4 | ) | (20.2 | ) | (3.5 | ) | — | (16.1 | ) | — | (39.8 | ) | |||||||||||||||||||||||||||||
Net cash used | (39.5 | ) | (6.6 | ) | (0.1 | ) | (7.4 | ) | — | (53.6 | ) | |||||||||||||||||||||||||||||||||||||
Net cash provided (used) | (74.3 | ) | 81.9 | — | (32.1 | ) | — | (24.5 | ) | |||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) | (0.5 | ) | 15.5 | 0.9 | 32.0 | — | 47.9 | (0.4 | ) | (8.6 | ) | 0.1 | (14.6 | ) | — | (23.5 | ) | |||||||||||||||||||||||||||||||
At beginning of year | 0.7 | 20.7 | (0.9 | ) | 10.6 | — | 31.1 | 0.2 | 36.2 | — | 42.6 | — | 79.0 | |||||||||||||||||||||||||||||||||||
At end of year | $ | 0.2 | $ | 36.2 | $ | — | $ | 42.6 | $ | — | $ | 79.0 | $ | (0.2 | ) | $ | 27.6 | $ | 0.1 | $ | 28.0 | $ | — | $ | 55.5 | |||||||||||||||||||||||
Note | Geographic Information |
105
97
Years Ended December 31 | Years Ended December 31 | |||||||||||||||||||||||
2008 | 2007 | 2006 | 2009 | 2008 | 2007 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
U.S | $ | 1,033.6 | $ | 929.6 | $ | 885.7 | ||||||||||||||||||
U.S. | $ | 864.2 | $ | 1,033.6 | $ | 929.6 | ||||||||||||||||||
Mexico | 818.5 | 813.2 | 774.0 | 616.0 | 818.5 | 813.2 | ||||||||||||||||||
Total revenues | $ | 1,852.1 | $ | 1,742.8 | $ | 1,659.7 | $ | 1,480.2 | $ | 1,852.1 | $ | 1,742.8 | ||||||||||||
Years Ended December 31 | ||||||||
2008 | 2007 | |||||||
Long-lived Assets | ||||||||
U.S | $ | 2,342.1 | $ | 2,045.0 | ||||
Mexico | 2,245.8 | 2,088.3 | ||||||
Total long-lived assets | $ | 4,587.9 | $ | 4,133.3 | ||||
Years Ended December 31 | ||||||||
2009 | 2008 | |||||||
Property and equipment (including concession assets), net | ||||||||
U.S. | $ | 2,501.2 | $ | 2,342.1 | ||||
Mexico | 2,246.0 | 2,256.3 | ||||||
Total property and equipment (including concession assets), net | $ | 4,747.2 | $ | 4,598.4 | ||||
Note | Subsequent Event |
10698
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
99
100
Item 10. | Directors, Executive Officers and Corporate Governance |
107
101
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
108
Weighted- | Number of Securities | Weighted- | Number of Securities | |||||||||||||||||||||
Average Exercise | Remaining Available for | Average Exercise | Remaining Available for | |||||||||||||||||||||
Number of Securities | Price of | Future Issuance Under | Number of Securities | Price of | Future Issuance Under | |||||||||||||||||||
to be Issued upon | Outstanding | Equity Compensation | to be Issued upon | Outstanding | Equity Compensation | |||||||||||||||||||
Exercise of | Options, | Plans-Excluding | Exercise of | Options, | Plans-Excluding | |||||||||||||||||||
Outstanding Options, | Warrants and | Securities Reflected in | Outstanding Options, | Warrants and | Securities Reflected in | |||||||||||||||||||
Plan Category | Warrants and Rights | Rights | the First Column(i) | Warrants and Rights | Rights | the First Column(i) | ||||||||||||||||||
Equity compensation plans: | ||||||||||||||||||||||||
Approved by security holders | 1,687,615 | $ | 10.08 | 6,215,672 | 1,744,555 | $ | 15.53 | 10,124,400 | ||||||||||||||||
Not approved by security holders | — | — | — | — | — | — | ||||||||||||||||||
Total | 1,687,615 | $ | 10.08 | 6,215,672 | 1,744,555 | $ | 15.53 | 10,124,400 | ||||||||||||||||
(i) | Includes |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
2008 | 2007 | |||||||
Audit fees | $ | 3,000.0 | $ | 3,681.7 | ||||
Audit-related fees(1) | 616.5 | 465.5 | ||||||
Tax fees | 28.0 | 50.0 | ||||||
All other fees | — | — | ||||||
$ | 3,664.5 | $ | 4,197.2 | |||||
109102
Item 15. | Exhibits and Financial Statement Schedules |
(a) | List of Documents filed as part of this Report |
Exhibit | Description | |||
(2) | Plan of acquisition, reorganization, arrangement, liquidation or succession. | |||
2 | .1 | Stockholders’ Agreement by and among KCS, Grupo TMM, S.A., TMM Holdings, S.A. de C.V., TMM Multimodal, S.A. de C.V. and certain stockholders of Grupo TMM, S.A (the “Stockholders’ Agreement”), filed as Exhibit 10.3 to the Company’s Current Report onForm 8-K filed on December 21, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.1. | ||
2 | .2 | Registration Rights Agreement by and among KCS, Grupo TMM, S.A., TMM Multimodal, S.A. de C.V. and certain stockholders of Grupo TMM, S.A. (the “Acquisition Registration Rights Agreement”), filed as Exhibit 10.4 to the Company’s Current Report onForm 8-K filed on December 21, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.2. | ||
2 | .3 | Rights Agreement, dated September 29, 2005, by and between KCS and UMB Bank, n.a. (the “2005 Rights Agreement”), filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on October 3, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.3. | ||
2 | .4 | Registration Rights Agreement, dated November 21, 2006, among Kansas City Southern de México, S.A. de C.V. (“KCSM”), Morgan Stanley & Co. Incorporated, Banc of America Securities LLC, BBVA Securities Inc., BMO Capital Markets Corp., and Scotia Capital (USA) Inc. (the “2006 Registration Rights Agreement”), filed as Exhibit 4.3 to the Company’s Current Report onForm 8-K filed on November 28, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.4. | ||
2 | .5 | Registration Rights Agreement, dated May 16, 2007, among KCSM, Morgan Stanley & Co. Incorporated, Banc of America Securities LLC, BBVA Securities Inc., BMO Capital Markets Corp., and Scotia Capital (USA) Inc. (the “2007 Registration Rights Agreement”), filed as Exhibit 2.5 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.5. | ||
(3) | Articles of Incorporation and Bylaws Articles of Incorporation | |||
3 | .1 | Restated Certificate of Incorporation, filed as Exhibit 3.1 to the Company’s Registration Statement onForm S-4 originally filed July 12, 2002 (RegistrationNo. 333-92360), as amended and declared effective on July 30, 2002 (the “2002S-4 Registration Statement”), is incorporated herein by reference as Exhibit 3.1. Bylaws. | ||
3 | .2 | The Amended and Restated By-Laws of the Company, as amended on November 11, 2008, filed as Exhibit 3.2 to the Company’s Current Report onForm 8-K filed on November 11, 2008 (FileNo. 1-4717), are incorporated herein by reference as Exhibit 3.2. | ||
(4) | Instruments Defining the Right of Security Holders, Including Indentures | |||
4 | .1 | The Fourth, Seventh, Eighth, Eleventh, Twelfth, Thirteenth, Fourteenth, Fifteenth and Sixteenth paragraphs of the Company’s Restated Certificate of Incorporation. (See Exhibit 3.1). |
Exhibit | Description | |||
(2) | Plan of acquisition, reorganization, arrangement, liquidation or succession | |||
2 | .1 | Stockholders’ Agreement, dated December 15, 2004, by and among KCS, Grupo TMM, S.A., TMM Holdings, S.A. de C.V., TMM Multimodal, S.A. de C.V. and certain stockholders of Grupo TMM, S.A. (the “Stockholders’ Agreement”), filed as Exhibit 10.3 to the Company’s Current Report onForm 8-K, filed on December 21, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.1. | ||
2 | .2 | Registration Rights Agreement by and among KCS, Grupo TMM, S.A., TMM Multimodal, S.A. de C.V. and certain stockholders of Grupo TMM, S.A. (the “Acquisition Registration Rights Agreement”), filed as Exhibit 10.4 to the Company’s Current Report onForm 8-K, filed on December 21, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.2. | ||
2 | .3 | Rights Agreement, dated September 29, 2005, by and between KCS and UMB Bank, n.a. (the “2005 Rights Agreement”), filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on October 3, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.3. | ||
2 | .4 | Registration Rights Agreement, dated May 5, 2003, between KCS and Morgan Stanley & Co. Incorporated and Deutsche Bank Securities Inc. (the “2003 Registration Rights Agreement”), filed as Exhibit 4.5 to the Company’s Registration Statement onForm S-3 originally filed on August 1, 2003 (RegistrationNo. 333-107573), (the “2003S-3 Registration Statement”), is incorporated herein by reference as Exhibit 2.4. | ||
2 | .5 | Registration Rights Agreement, dated April 19, 2005, between Kansas City Southern de México, S.A. de C.V. (“KCSM”), and Morgan Stanley & Co. Incorporated and Scotia Capital (USA) Inc. (the “2005 KCSM Registration Rights Agreement”), is incorporated herein by reference to Exhibit 4.1 of KCSM’s Current Report onForm 8-K, filed on April 25, 2005 (FileNo. 333-08322) is incorporated herein by reference as Exhibit 2.5. | ||
2 | .6 | Registration Rights Agreement, dated November 21, 2006, between KCSM and Morgan Stanley & Co. Incorporated, Banc of America Securities LLC, BBVA Securities Inc., BMO Capital Markets Corp., and Scotia Capital (USA) Inc. (the “2006 KCSM Registration Rights Agreement”), filed as Exhibit 4.3 to the Company’s Current Report onForm 8-K, filed on November 28, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.6. | ||
2 | .7 | Registration Rights Agreement, dated May 16, 2007, between KCSM and Morgan Stanley & Co. Incorporated, Banc of America Securities LLC, BBVA Securities Inc., BMO Capital Markets Corp., and Scotia Capital (USA) Inc. (the “2007 KCSM Registration Rights Agreement”), filed as Exhibit 2.5 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 2.7. |
103
Exhibit | Description | |||
2 | .8 | Registration Rights Agreement, dated March 30, 2009, between Kansas City Southern de México, S.A. de C.V. (“KCSM”) and Banc of America Securities, LLC, as representative of the placement agents listed therein (“2009 KCSM Registration Rights Agreement”), filed as Exhibit 2.1 to the Company’sForm 10-Q for the quarter ended March 31, 2009 (FileNo. 1-4717), is incorporated by reference as Exhibit 2.8. | ||
2 | .9 | Registration Rights Agreement, dated January 22, 2010, between KCSM and Banc of America Securities, LLC, as representative of the placement agents listed therein (the “2010 KCSM Registration Rights Agreement”), filed as Exhibit 4.2 to the Company’s Current Report onForm 8-K, filed on January 28, 2010 (FileNo. 1-4717), is incorporated by reference as Exhibit 2.9. | ||
(3) | Articles of Incorporation and Bylaws Articles of Incorporation | |||
3 | .1 | Restated Certificate of Incorporation, filed as Exhibit 3.1 to the Company’s Registration Statement onForm S-4 originally filed July 12, 2002 (RegistrationNo. 333-92360), as amended and declared effective on July 30, 2002 (the “2002S-4 Registration Statement”), is incorporated herein by reference as Exhibit 3.1. | ||
3 | .2 | The Amended and Restated By-Laws of the Company, as amended on November 11, 2008, filed as Exhibit 3.2 to the Company’s Current Report onForm 8-K, filed on November 11, 2008 (FileNo. 1-4717), are incorporated herein by reference as Exhibit 3.2. | ||
(4) | Instruments Defining the Right of Security Holders, Including Indentures | |||
4 | .1 | The Fourth, Seventh, Eighth, Eleventh, Twelfth, Thirteenth, Fourteenth, Fifteenth and Sixteenth paragraphs of the Company’s Restated Certificate of Incorporation. (See Exhibit 3.1) | ||
4 | .2 | Article I, Sections 1, 3 and 11 of Article II, Article V and Article VIII of the Company’s Bylaws. (See Exhibit 3.2) | ||
4 | .3 | Indenture, dated July 1, 1992, between the Company and The Chase Manhattan Bank (the “1992 Indenture”) filed as Exhibit 4 to the Company’s Shelf Registration of $300 million of 7% Debentures onForm S-3 filed June 19, 1992 (RegistrationNo. 33-47198), is incorporated herein by reference as Exhibit 4.3. | ||
4 | .3.1 | Supplemental Indenture, dated December 17, 1999, to the 1992 Indenture between the Company and The Chase Manhattan Bank, filed as Exhibit 4.5.4 to the Company’sForm 10-K for the year ended December 31, 1999 (File No 1-4717), is incorporated herein by reference as Exhibit 4.3.1. | ||
4 | .4 | Indenture, dated September 27, 2000, among the Company, The Kansas City Southern Railway Company (“KCSR”), certain other subsidiaries of the Company and The Bank of New York, as Trustee (the “2000 Indenture”), filed as Exhibit 4.1 to the Company’s Registration Statement onForm S-4 originally filed on January 25, 2001 (RegistrationNo. 333-54262), as amended and declared effective on March 15, 2001 (the “2001S-4 Registration Statement”), is incorporated herein by reference as Exhibit 4.4. | ||
4 | .4.1 | Supplemental Indenture, dated January 29, 2001, to the 2000 Indenture, among the Company, KCSR, certain other subsidiaries of the Company and The Bank of New York, as trustee, filed as Exhibit 4.1.1 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 4.4.1. | ||
4 | .4.2 | Second Supplemental Indenture, dated June 10, 2005, to the 2000 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company and The Bank of New York, as trustee, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.4.2. | ||
4 | .4.3 | Third Supplemental Indenture, dated February 5, 2007, to the 2000 Indenture, among the Company, KCSR, certain other subsidiaries of the Company and the Bank of New York Trust Company, N.A., as trustee, filed as Exhibit 4.4.3 to the Company’sForm 10-K for the year ended December 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.4.3. | ||
4 | .4.4 | Fourth Supplemental Indenture, dated May 21, 2008, to the 2000 Indenture, among the Company, KCSR, certain other subsidiaries of the Company and the Bank of New York Trust Company, N.A., as trustee, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on May 23, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.4.4. | ||
4 | .4.5 | Form of Exchange Note (included as Exhibit B to Exhibit 4.4 of thisForm 10-K). |
104
Exhibit | Description | |||
4 | .5 | Exchange and Registration Rights Agreement, dated September 27, 2000, among the Company, KCSR, and certain other subsidiaries of the Company, filed as Exhibit 4.3 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 4.5. | ||
4 | .6 | Indenture, dated June 12, 2002, among KCSR, the Company and certain subsidiaries of the Company, and U.S. Bank National Association, as trustee, covering up to $200,000,000 of KCSR’s 71/2% Senior Notes due 2009 (the “June 12, 2002 Indenture”), filed as Exhibit 4.1 to the 2002S-4 Registration Statement (RegistrationNo. 333-92360), is incorporated herein by reference as Exhibit 4.6. | ||
4 | .6.1 | Form of Face of Exchange Note, filed as Exhibit 4.2 to the 2002S-4 Registration Statement (RegistrationNo. 333-92360), is incorporated herein by reference as Exhibit 4.6.1. | ||
4 | .6.2 | Supplemental Indenture, dated June 10, 2005, to the June 12, 2002 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company, and U.S. Bank National Association, as trustee, filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended June 30, 2005, is incorporated herein by reference as Exhibit 4.6.2. | ||
4 | .6.3 | Second Supplemental Indenture, dated February 5, 2007, to the June 12, 2002 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company, and U.S. Bank National Association, as trustee, filed as Exhibit 4.6.3 to the Company’sForm 10-K for year ended December 31, 2006, is incorporated herein by reference as Exhibit 4.6.3. | ||
4 | .6.4 | Third Supplemental Indenture, dated January 27, 2009, to the June 12, 2002 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company, and U.S. Bank National Association, as trustee, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on February 2, 2009, is incorporated herein by reference as Exhibit 4.6.4. | ||
4 | .7 | Certificate of Designations of 4.25% Redeemable Cumulative Convertible Perpetual Preferred Stock, Series C, filed as Exhibit 3.1(b) to the Company’sForm 10-Q for the quarter ended March 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.7. | ||
4 | .8 | 2003 Registration Rights Agreement (See Exhibit 2.4) | ||
4 | .9 | Certificate of Designations of 5.125% Cumulative Convertible Perpetual Preferred Stock, Series D, filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K, filed on December 15, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.9. | ||
4 | .10 | Indenture, dated April 19, 2005, between TFM and The Bank of Nova Scotia Trust Company of New York, covering up to $460,000,000 of TFM’s 93/8% Senior Notes due 2012 (the “2005 KCSM Indenture”), filed as Exhibit 4.13 to the Company’s 2006S-1 Registration Statement (RegistrationNo. 333-138831), is incorporated herein by reference as Exhibit 4.10. | ||
4 | .10.1 | The 2005 KCSM Registration Rights Agreement. (See Exhibit 2.5) | ||
4 | .11 | Indenture, dated November 21, 2006, between KCSM and U.S. Bank National Association, as trustee and paying agent, covering up to $175,000,000 of KCSM’s 75/8% Senior Notes due 2013 (the “2006 KCSM Indenture”), filed as Exhibit 4.2 to the Company’s Current Report onForm 8-K, filed on November 28, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.11. | ||
4 | .11.1 | The 2006 KCSM Registration Rights Agreement. (See Exhibit 2.6) | ||
4 | .12 | Indenture, dated May 16, 2007, between KCSM and U.S. Bank National Association, as trustee and paying agent, covering up to $165,000,000 of KCSM’s 73/8% Senior Notes due 2014 (the “2007 KCSM Indenture”), filed as Exhibit 4.14 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.12. | ||
4 | .12.1 | The KCSM 2007 Registration Rights Agreement. (See Exhibit 2.7) | ||
4 | .13 | Indenture, dated May 30, 2008, among KCSR, the Company and certain subsidiaries of the Company, and U.S. Bank National Association, as trustee, covering up to $275,000,000 of KCSR’s 8% Senior Notes due 2015 (the “May 2008 Indenture”), filed as Exhibit 4.2 to the Company’s Current Report onForm 8-K filed on June 2, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.13. |
105
Exhibit | Description | |||
4 | .14 | Indenture, dated December 18, 2008 among KCSR, the Company and certain subsidiaries of the Company, and U.S. Bank National Association, as trustee, covering up to $190,000,000 of KCSR’s 13% Senior Notes due 2013 (the “December 2008 Indenture”), filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K filed on December 19, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.14. | ||
4 | .15 | Indenture, dated March 30, 2009, between KCSM and U.S. Bank National Association, as trustee and paying agent, covering up to $200,000,000 of KCSR’s 121/2% Senior Notes due 2016 (the “2009 KCSM Indenture”), filed as Exhibit 4.1 to the Company’sForm 10-Q for the quarter ended March 31, 2009 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.15. | ||
4 | .15.1 | Supplemental Indenture to the 2009 KCSM Indenture, dated November 12, 2009, between KCSM, as issuer, and U.S. Bank National Association, as trustee and paying agent (the “2009 KCSM Supplemental Indenture”), is attached to thisForm 10-K as Exhibit 4.15.1. | ||
4 | .15.2 | The KCSM 2009 Registration Rights Agreement. (See Exhibit 2.8) | ||
4 | .16 | Indenture, dated January 22, 2010, between KCSM and U.S. Bank National Association, as trustee and paying agent, covering up to $300,000,000 of KCSM’s 8% Senior Notes due 2018 (the “2010 KCSM Indenture”), filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K, filed on January 28, 2010 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.16. | ||
4 | .16.1 | 2010 KCSM Registration Rights Agreement. (See Exhibit 2.9) | ||
4 | .17 | The Stockholders’ Agreement. (See Exhibit 2.1) | ||
4 | .18 | The Acquisition Registration Rights Agreement. (See Exhibit 2.2) | ||
4 | .19 | The 2005 Rights Agreement. (See Exhibit 2.3) | ||
(10) | Material Contracts. | |||
10 | .1 | Form of Officer Indemnification Agreement attached as Exhibit 10.1 to the Company’sForm 10-K for the year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.1. | ||
10 | .2 | Form of Director Indemnification Agreement attached as Exhibit 10.2 to the Company’sForm 10-K for the year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.2. | ||
10 | .3 | Description of the Company’s 1991 incentive compensation plan, filed as Exhibit 10.4 to the Company’sForm 10-K for the year ended December 31, 1990 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.3. | ||
10 | .4 | Directors Deferred Fee Plan, adopted August 20, 1982, as amended and restated effective January 1, 2005, filed as Exhibit 10.7 to the Company’sForm 10-K for the year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.4. | ||
10 | .5 | Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award Plan, as amended and restated effective as of August 7, 2007 (the “Amended 1991 Plan”), filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended September 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5. | ||
10 | .5.1 | Form of Non-Qualified Stock Option Award Agreement for employees under the Amended 1991 Plan, filed as Exhibit 10.8.2 to the Company’sForm 10-K for the year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.1. | ||
10 | .5.2 | Form of Non-Qualified Stock Option Award Agreement for Directors under the Amended 1991 Plan, filed as Exhibit 10.8.3 to the Company’sForm 10-K for the year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.2. | ||
10 | .5.3 | Form of Non-Qualified Stock Option Award agreement for employees under the Amended 1991 Plan (referencing threshold dates), filed as Exhibit 10.8.4 to the Company’sForm 10-K for the year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.3. | ||
10 | .5.4 | Form of Restricted Shares Award and Performance Shares Award Agreement under the Amended 1991 Plan, filed as Exhibit 10.5.4 to the Company’sForm 10-K for the year ended December 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.4. |
106
Exhibit | Description | |||
10 | .5.5 | Form of Restricted Shares Award Agreement (non-management directors) under the Amended 1991 Plan, filed as Exhibit 10.2 to the Company’s Current Report onForm 8-K, filed on May 11, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.5. | ||
10 | .5.6 | Form of Restricted Shares Award Agreement (cliff vesting) under the Amended 1991 Plan, filed as Exhibit 10.5.6 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.6. | ||
10 | .5.7 | Form of Restricted Shares Award Agreement under the Amended 1991 Plan (applicable to restricted shares to be purchased), filed as Exhibit 10.8.7 to the Company’sForm 10-K for the year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.7. | ||
10 | .5.8 | Form of Restricted Shares Award and Performance Shares Award Agreement for Interim Awards under the Amended 1991 Plan, filed as Exhibit 10.5.8 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.8. | ||
10 | .5.9 | Form of Restricted Shares Award Agreement (consultants) under the Amended 1991 Plan, filed as Exhibit 10.5.9 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.9. | ||
10 | .5.10 | Form of Restricted Shares Award Agreement (executive plan) under the Amended 1991 Plan, filed as Exhibit 10.5.10 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.10. | ||
10 | .5.11 | First Amendment to the Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award Plan, effective July 2, 2008, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on July 8, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.11. | ||
10 | .6 | Kansas City Southern 401(k) and Profit Sharing Plan (as amended and restated, effective April 1, 2002) (the “Amended 401(k) and Profit Sharing Plan”), filed as Exhibit 10.10.1 to the Company’sForm 10-K for the year ended December 31, 2002 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6. | ||
10 | .6.1 | First Amendment to the Amended 401(k) and Profit Sharing Plan, effective January 1, 2003, filed as Exhibit 10.10.2 to the Company’sForm 10-K for the year ended December 31, 2002 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.1. | ||
10 | .6.2 | Amendment to the Amended 401(k) and Profit Sharing Plan, dated June 30, 2003 and effective as of January 1, 2001, filed as Exhibit 10.10.3 to the Company’sForm 10-K for the year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.2. | ||
10 | .6.3 | Amendment to the Amended 401(k) and Profit Sharing Plan, dated December 3, 2003 and effective as of January 1, 2003, filed as Exhibit 10.10.4 to the Company’sForm 10-K for the year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.3. | ||
10 | .6.4 | Amendment to the Amended 401(k) and Profit Sharing Plan, dated and effective August 7, 2007, filed as Exhibit 10.6.4 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.4. | ||
10 | .7 | Employment Agreement, as amended and restated January 1, 2001, among the Company, KCSR and Michael R. Haverty, filed as Exhibit 10.12 to the Company’sForm 10-K for the year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.7. | ||
10 | .7.1 | Addendum to Employment Agreement dated August 18, 2004 between KCSR, the Company and Michael R. Haverty, filed as Exhibit 10.8.1 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.7.1. | ||
10 | .7.2 | Amendment to Amended and Restated Employment Agreement effective January 1, 2005 among KCSR, the Company and Michael R. Haverty, filed as Exhibit 10.8.2 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.7.2. | ||
10 | .7.3 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Michael R. Haverty, filed as Exhibit 10.7.3 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.7.3. |
107
Exhibit | Description | |||
10 | .8 | Employment Agreement, dated May 15, 2006, between KCSR and Patrick J. Ottensmeyer (the “Ottensmeyer Employment Agreement”), attached as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on June 12, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.8. | ||
10 | .8.1 | Amendment No. 1 to the Ottensmeyer Employment Agreement, dated May 7, 2007, filed as Exhibit 10.4 to the Company’sForm 10-Q for the quarter ended June 30, 2007 (FileNo. 1-4717), is incorporated by reference as Exhibit 10.8.1. | ||
10 | .8.2 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Patrick J. Ottensmeyer, filed as Exhibit 10.8.2 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.8.2. | ||
10 | .9 | Kansas City Southern Executive Plan, as amended and restated November 11, 2008, filed as Exhibit 10.10 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.9. | ||
10 | .10 | The Amended and Restated Kansas City Southern Annual Incentive Plan, as approved by the Company’s Compensation and Organization Committee on November 11, 2008, filed as Exhibit 10.11 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.10. | ||
10 | .11 | Security Agreement, dated March 30, 2004, from KCS, KCSR and certain other subsidiaries of KCS to The Bank of Nova Scotia as Collateral Agent, filed as Exhibit 10.19.1 to the Company’sForm 10-K for the year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.11. | ||
10 | .11.1 | Amendment No. 1 to the Security Agreement, dated December 22, 2004, among KCSR, KCS, the subsidiary guarantors, the lenders party thereto and The Bank of Nova Scotia, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on December 29, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.11.1. | ||
10 | .11.2 | Amendment No. 1 to the Security Agreement, dated as of November 29, 2006, among KCSR, KCS, the subsidiary guarantors, The Bank of Nova Scotia, as collateral agent and administrative agent, and the lenders party thereto, filed as Exhibit 10.15.2 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.11.2. | ||
10 | .11.3 | Amended and Restated Credit Agreement, dated April 28, 2006, among KCSR, KCS, the subsidiary guarantors, the lenders party thereto, The Bank of Nova Scotia, Morgan Stanley Senior Funding, Inc., Harris Bank, N.A., LaSalle Bank National Association and Bank of Tokyo-Mitsubishi UFJ Trust Company, and Scotia Capital, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended March 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.11.3. | ||
10 | .11.4 | Amendment No. 1 to the Amended and Restated Credit Agreement, dated May 31, 2007, among KCSR, KCS, the subsidiary guarantors, the lenders party thereto and The Bank of Nova Scotia, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended June 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.11.4. | ||
10 | .12 | The 1992 Indenture. (See Exhibit 4.3) | ||
10 | .12.1 | The Supplemental Indenture, dated December 17, 1999, to the 1992 Indenture. (See Exhibit 4.3.1) | ||
10 | .13 | The 2000 Indenture. (See Exhibit 4.4) | ||
10 | .13.1 | The Supplemental Indenture, dated January 29, 2001, to the 2000 Indenture. (See Exhibit 4.4.1) | ||
10 | .13.2 | The Second Supplemental Indenture, dated June 10, 2005, to the 2000 Indenture. (See Exhibit 4.4.2) | ||
10 | .13.3 | The Third Supplemental Indenture, dated February 5, 2007, to the 2000 Indenture. (See Exhibit 4.4.3) | ||
10 | .13.4 | The Fourth Supplemental Indenture, dated December 18, 2008, to the 2000 Indenture. (See Exhibit 4.4.4) | ||
10 | .14 | Intercompany Agreement, dated August 16, 1999, between the Company and Stilwell Financial Inc., filed as Exhibit 10.23 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 10.14. |
108
Exhibit | Description | |||
10 | .15 | Tax Disaffiliation Agreement, dated August 16, 1999, between the Company and Stilwell Financial Inc., filed as Exhibit 10.24 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 10.15. | ||
10 | .16 | Lease Agreement, originally dated June 26, 2001 and amended March 26, 2002, between KCSR and Broadway Square Partners LLP, filed as Exhibit 10.34 to the Company’sForm 10-K for the year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.16. | ||
10 | .17 | The June 12, 2002 Indenture. (See Exhibit 4.6) | ||
10 | .17.1 | The Supplemental Indenture, dated June 10, 2005, to the June 12, 2002 Indenture. (See Exhibit 4.6.2) | ||
10 | .17.2 | The Second Supplemental Indenture, dated February 5, 2007, to the June 12, 2002 Indenture. (See Exhibit 4.6.3) | ||
10 | .17.3 | The Third Supplemental Indenture, dated January 27, 2009, to the June 12, 2002 Indenture. (See Exhibit 4.6.4) | ||
10 | .18 | Agreement to Forego Compensation between A. Edward Allinson and the Company, fully executed on March 30, 2001; Loan Agreement between A. Edward Allinson and the Company fully executed on September 18, 2001; and the Promissory Note executed by the Trustees of The A. Edward Allinson Irrevocable Trust Agreement dated, June 4, 2001, Courtney Ann Arnot, A. Edward Allinson III and Bradford J. Allinson, Trustees, as Maker, and the Company, as Holder, filed as Exhibit 10.36 to the Company’sForm 10-K for the year ended December 31, 2002 (FileNo. 1-4717), are incorporated herein by reference as Exhibit 10.18. | ||
10 | .19 | Agreement to Forego Compensation between Michael G. Fitt and the Company, fully executed on March 30, 2001; Loan Agreement between Michael G. Fitt and the Company, fully executed on September 7, 2001; and the Promissory Note executed by the Trustees of The Michael G. and Doreen E. Fitt Irrevocable Insurance Trust, Anne E. Skyes, Colin M-D. Fitt and Ian D.G. Fitt, Trustees, as Maker, and the Company, as Holder, filed as Exhibit 10.37 to the Company’sForm 10-K for the year ended December 31, 2002 (FileNo. 1-4717), are incorporated herein by reference as Exhibit 10.19. | ||
10 | .20 | Kansas City Southern Employee Stock Ownership Plan, as amended and restated, effective April 1, 2002, (the “Amended Employee Stock Ownership Plan”), filed as Exhibit 10.38 to the Company’sForm 10-K for the year ended December 31, 2002 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.20. | ||
10 | .20.1 | Amendment to the Amended Employee Stock Ownership Plan, dated June 30, 2003 and effective as of January 1, 2001, filed as Exhibit 10.38.2 to the Company’sForm 10-K for the year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.20.1. | ||
10 | .20.2 | Amendment to the Amended Employee Stock Ownership Plan, dated December 3, 2003 and effective as of January 1, 2003, filed as Exhibit 10.38.3 to the Company’sForm 10-K for the year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.20.2. | ||
10 | .20.3 | Amendment to the Amended Employee Stock Ownership Plan, dated and effective October 29, 2007, filed as Exhibit 10.24.3 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.20.3. | ||
10 | .21 | Transaction Agreement, dated December 1, 2005, among the Company, KCSR, Norfolk Southern Corporation and The Alabama Great Southern Railroad Company (the “Transaction Agreement”), filed as Exhibit 10.46 to the Company’sForm 10-K for the year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.21. | ||
10 | .21.1 | Amendment No. 1 to the Transaction Agreement, dated January 17, 2006, filed as Exhibit 10.47 to the Company’sForm 10-K for the year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.21.1. | ||
10 | .21.2 | Amendment No. 2 to the Transaction Agreement, dated May 1, 2006, filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended March 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.21.2. |
109
Exhibit | Description | |||
10 | .22 | Participation Agreement, dated December 20, 2005, among KCSR, KCSRTrust 2005-1 (acting through Wilmington Trust Company, as owner trustee) (“2005 Trust”), GS Leasing (KCSR2005-1) LLC, Wells Fargo Bank Northwest, National Association, Export Development Canada, and KfW, filed as Exhibit 10.48 to the Company’sForm 10-K for the year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.22. | ||
10 | .23 | Equipment Lease Agreement, dated December 20, 2005, between KCSR and the KCSRTrust 2005-1, filed as Exhibit 10.49 to the Company’sForm 10-K for the year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.23. | ||
10 | .24 | Participation Agreement, dated August 2, 2006, among KCSR, KCSRTrust 2006-1 (acting through Wilmington Trust Company, as owner trustee) (“2006 Trust”), HSH Nordbank AG, New York Branch, Wells Fargo Bank Northwest, National Association, and DVB Bank AG, filed as Exhibit 10.4 to the Company’sForm 10-Q for the quarter ended September 30, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.24. | ||
10 | .25 | Equipment Lease Agreement, dated August 2, 2006, between KCSR and the KCSRTrust 2006-1, filed as Exhibit 10.41 to the Company’sForm 10-Q for the quarter ended September 30, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.25. | ||
10 | .26 | Limited Liability Company Agreement of Meridian Speedway, LLC, dated May 1, 2006, between the Alabama Great Southern Railroad Company and the Company, filed as Exhibit 10.3 to the Company’sForm 10-Q for the quarter ended March 31, 2006, (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.26. | ||
10 | .27 | Underwriting Agreement, dated December 4, 2006, among the Company, Morgan Stanley & Co. Incorporated, and Grupo TMM, S.A., filed as Exhibit 1.1 to the Company’s Current Report onForm 8-K, filed on December 5, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.27. | ||
10 | .28 | The 2005 Indenture. (See Exhibit 4.10) | ||
10 | .29 | The 2006 Indenture. (See Exhibit 4.11) | ||
10 | .30 | Lease Agreement, dated September 25, 2005, between KCSR and Louisiana Southern Railroad, Inc., filed as Exhibit 10.5 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.30. | ||
10 | .31 | Lease Agreement, dated September 25, 2005, between KCSR and Alabama Southern Railroad, Inc., filed as Exhibit 10.6 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.31. | ||
10 | .32 | Lease Agreement, dated September 25, 2005, between KCSR and Arkansas Southern Railroad, Inc., filed as Exhibit 10.7 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.32. | ||
10 | .33 | Lease Agreement, dated September 25, 2005, between KCSR and Arkansas Southern Railroad, Inc., filed as Exhibit 10.8 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.33. | ||
10 | .34 | Lease Agreement, dated September 25, 2005, between KCSR and Louisiana Southern Railroad, Inc., filed as Exhibit 10.9 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.34. | ||
10 | .35 | Equipment Lease Agreement, dated April 4, 2007, between KCSR and High Ridge Leasing, LLC, filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended March 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.35. | ||
10 | .36 | 2007 KCSM Indenture. (See Exhibit 4.12) | ||
10 | .37 | Credit Agreement, dated June 14, 2007, among KCSM as borrower, Arrendadora KCSM as guarantor, Bank of America, N.A. as administrative agent, and the other lenders named therein (the “2007 KCSM Credit Agreement”), filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended June 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.37. | ||
10 | .37.1 | Amendment No. 1 and Waiver No. 1, dated December 19, 2007, to the 2007 KCSM Credit Agreement, filed as Exhibit 10.49.1 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.37.1. |
110
Exhibit | Description | |||
4 | .2 | Article I, Sections 1, 3 and 11 of Article II, Article V and Article VIII of the Company’s Bylaws. (See Exhibit 3.2). | ||
4 | .3 | Indenture, dated July 1, 1992, between the Company and The Chase Manhattan Bank (the “1992 Indenture”) filed as Exhibit 4 to the Company’s Shelf Registration of $300 million of Debt Securities onForm S-3 filed June 19, 1992 (RegistrationNo. 33-47198), is incorporated herein by reference as Exhibit 4.3. | ||
4 | .3.1 | Supplemental Indenture, dated December 17, 1999, to the 1992 Indenture between the Company and The Chase Manhattan Bank, filed as Exhibit 4.5.4 to the Company’sForm 10-K for the fiscal year ended December 31, 1999 (File No 1-4717), is incorporated herein by reference as Exhibit 4.3.1. | ||
4 | .4 | Indenture, dated September 27, 2000, among the Company, The Kansas City Southern Railway Company (“KCSR”), certain other subsidiaries of the Company and The Bank of New York, as Trustee (the “2000 Indenture”), filed as Exhibit 4.1 to the Company’s Registration Statement onForm S-4 originally filed on January 25, 2001 (RegistrationNo. 333-54262), as amended and declared effective on March 15, 2001 (the “2001S-4 Registration Statement”), is incorporated herein by reference as Exhibit 4.4. | ||
4 | .4.1 | Supplemental Indenture, dated January 29, 2001, to the 2000 Indenture, among the Company, KCSR, certain other subsidiaries of the Company and The Bank of New York, as trustee, filed as Exhibit 4.1.1 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 4.4.1. | ||
4 | .4.2 | Second Supplemental Indenture, dated June 10, 2005, to the 2000 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company and The Bank of New York, as trustee, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.4.2. | ||
4 | .4.3 | Third Supplemental Indenture, dated February 5, 2007, to the 2000 Indenture, among the Company, KCSR, certain other subsidiaries of the Company and the Bank of New York Trust Company, N.A., as trustee, filed as Exhibit 4.4.3 to the Company’sForm 10-K for the fiscal year ended December 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.4.3. | ||
4 | .4.4 | Fourth Supplemental Indenture, dated May 21, 2008, to the 2000 Indenture, among the Company, KCSR, certain other subsidiaries of the Company and the Bank of New York Trust Company, N.A., as trustee, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on May 23, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.4.4. | ||
4 | .4.5 | Form of Exchange Note (included as Exhibit B to Exhibit 4.4 of thisForm 10-K). | ||
4 | .5 | Exchange and Registration Rights Agreement, dated September 27, 2000, among the Company, KCSR, and certain other subsidiaries of the Company, filed as Exhibit 4.3 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 4.5. | ||
4 | .6 | Indenture, dated June 12, 2002, among KCSR, the Company and certain subsidiaries of the Company, and U.S. Bank National Association, as trustee (the “June 12, 2002 Indenture”), filed as Exhibit 4.1 to the 2002S-4 Registration Statement (RegistrationNo. 333-92360), is incorporated herein by reference as Exhibit 4.6. | ||
4 | .6.1 | Form of Face of Exchange Note, filed as Exhibit 4.2 to the 2002S-4 Registration Statement (RegistrationNo. 333-92360), is incorporated herein by reference as Exhibit 4.6.1. | ||
4 | .6.2 | Supplemental Indenture, dated June 10, 2005, to the June 12, 2002 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company, and U.S. Bank National Association, as trustee, filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended June 30, 2005, is incorporated herein by reference as Exhibit 4.6.2. | ||
4 | .6.3 | Second Supplemental Indenture, dated February 5, 2007, to the June 12, 2002 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company, and U.S. Bank National Association, as trustee, filed as Exhibit 4.6.3 to the Company’sForm 10-K for fiscal year ended December 31, 2006, is incorporated herein by reference as Exhibit 4.6.3. |
Exhibit | Description | |||
10 | .37.2 | Amendment No. 2, dated as of December 19, 2008, to the 2007 KCSM Credit Agreement, filed as Exhibit 10.43.2 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.37.2. | ||
10 | .37.3 | Amendment No. 3 and Waiver No. 2 dated as of February 11, 2009, to the 2007 KCSM Credit Agreement, filed as Exhibit 10.43.3 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.37.3. | ||
10 | .38 | Settlement Agreement, dated September 21, 2007, among KCS and Grupo TMM, S.A.B., TMM Logistics, S.A. de C.V., and VEX Asesores Corporativos, S.A. de C.V. (formerly José F. Serrano International Business, S.A. de C.V.), filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended September 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.38. | ||
10 | .39 | Participation Agreement, dated September 27, 2007, among KCSR, KCSR2007-1 Statutory Trust (acting through U.S. Bank Trust National Association, as owner trustee) (“2007 Trust”), U.S. Bank Trust National Association, GS Leasing (KCSR2007-1) LLC, Wilimington Trust Company, and KfW, filed as Exhibit 10.51 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.39. | ||
10 | .40 | Equipment Lease Agreement, dated September 27, 2007, between KCSR and the KCSR2007-1 Statutory Trust, filed as Exhibit 10.52 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.40. | ||
10 | .41 | Kansas City Southern 2008 Stock Option and Performance Award Plan (the “2008 Plan”), filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on October 7, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.41. | ||
10 | .41.1 | Form of Non-Qualified Stock Option Award Agreement under the 2008 Plan, filed as Exhibit 10.47.1 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.41.1. | ||
10 | .41.2 | Form of Restricted Shares Award Agreement (cliff vesting) under the 2008 Plan, filed as Exhibit 10.47.2 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.41.2. | ||
10 | .41.3 | Form of Restricted Shares Award Agreement (graded vesting) under the 2008 Plan, filed as Exhibit 10.47.3 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.41.3. | ||
10 | .41.4 | Form of Restricted Shares Award Agreement under the 2008 Plan (applicable to restricted shares to be purchased), filed as Exhibit 10.47.4 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.41.4. | ||
10 | .41.5 | Form of Restricted Shares Award and Performance Shares Award Agreement under the 2008 Plan, filed as Exhibit 10.47.5 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.41.5. | ||
10 | .42 | The May 2008 Indenture. (See Exhibit 4.13) | ||
10 | .43 | The December 2008 Indenture. (See Exhibit 4.14) | ||
10 | .44 | Employment Agreement dated May 1, 2000, between Kansas City Southern Industries, Inc. and Scott E. Arvidson, filed as Exhibit 10.50 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.44. | ||
10 | .44.1 | Amendment to Employment Agreement dated January 1, 2001, between Kansas City Southern Industries, Inc. and Scott E. Arvidson, filed as Exhibit 10.50.1 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.44.1. | ||
10 | .44.2 | Addendum to Employment Agreement dated August 18, 2004, between the Company and Scott E. Arvidson, filed as Exhibit 10.50.2 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.44.2. | ||
10 | .44.3 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Scott E. Arvidson, filed as Exhibit 10.50.3 to the Company’sForm 10-K for the year ended December 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.44.3. |
111
Exhibit | Description | |||
4 | .6.4 | Third Supplemental Indenture, dated January 27, 2009, to the June 12, 2002 Indenture, among the Company, KCSR, and certain other subsidiaries of the Company, and U.S. Bank National Association, as trustee, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on February 2, 2009, is incorporated herein by reference as Exhibit 4.6.4. | ||
4 | .7 | Certificate of Designations of 4.25% Redeemable Cumulative Convertible Perpetual Preferred Stock, Series C, filed as Exhibit 3.1(b) to the Company’sForm 10-Q for the quarter ended March 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.7. | ||
4 | .8 | Registration Rights Agreement, dated May 5, 2003, among KCS, Morgan Stanley & Co. Incorporated and Deutsche Bank Securities Inc., filed as Exhibit 4.5 to the Company’s Registration Statement onForm S-3 originally filed on August 1, 2003 (RegistrationNo. 333-107573), as amended and declared effective on October 24, 2003 (the “2003S-3 Registration Statement”), is incorporated herein by reference as Exhibit 4.8. | ||
4 | .9 | Certificate of Designations of 5.125% Cumulative Convertible Perpetual Preferred Stock, Series D, filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K filed on December 15, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.9. | ||
4 | .10 | Indenture, dated April 19, 2005, between TFM and The Bank of Nova Scotia Trust Company of New York, covering up to $460,000,000 of TFM’s 93/8% Senior Notes due 2012 (the “2005 Indenture”), filed as Exhibit 4.13 to the 2006S-1 Registration Statement (RegistrationNo. 333-138831), is incorporated herein by reference as Exhibit 4.10. | ||
4 | .11 | Indenture, dated November 21, 2006, between KCSM and U.S. Bank National Association, as trustee and paying agent, covering up to $175,000,000 of KCSM’s 75/8% Senior Notes due 2013 (the “2006 Indenture”), filed as Exhibit 4.2 to the Company’s Current Report onForm 8-K filed on November 28, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.11. | ||
4 | .12 | Indenture, dated May 16, 2007, between KCSM and U.S. Bank National Association, as trustee and paying agent, covering up to $165,000,000 of KCSM’s 73/8% Senior Notes due 2014 (the “2007 Indenture”), filed as Exhibit 4.14 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.12. | ||
4 | .13 | Indenture, dated May 30, 2008, among KCSR, the Company and certain subsidiaries of the Company, and U.S. Bank National Association, as trustee (the “May 2008 Indenture”), filed as Exhibit 4.2 to the Company’s Current Report onForm 8-K filed on June 2, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.13. | ||
4 | .14 | Indenture, dated December 18, 2008 among KCSR, the Company and certain subsidiaries of the Company, and U.S. Bank National Association, as trustee (the “December 2008 Indenture”), filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K filed on December 19, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 4.14. | ||
(10) | Material Contracts | |||
10 | .1 | Form of Officer Indemnification Agreement attached as Exhibit 10.1 to the Company’sForm 10-K for the fiscal year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.1. | ||
10 | .2 | Form of Director Indemnification Agreement attached as Exhibit 10.2 to the Company’sForm 10-K for the fiscal year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.2. | ||
10 | .3 | Description of the Company’s 1991 incentive compensation plan, filed as Exhibit 10.4 to the Company’sForm 10-K for the fiscal year ended December 31, 1990 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.3. | ||
10 | .4 | Directors Deferred Fee Plan, adopted August 20, 1982, as amended and restated effective January 1, 2005, filed as Exhibit 10.7 to the Company’sForm 10-K for the fiscal year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.4. | ||
10 | .5 | Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award Plan, as amended and restated effective as of August 7, 2007 (the “Amended 1991 Plan”), filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended September 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5. |
Exhibit | Description | |||
10 | .45 | Participation Agreement (KCSR2008-1) dated as of April 1, 2008, among KCSR, KCSR2008-1 Statutory Trust (acting through U.S. Bank Trust National Association, not in its individual capacity, but solely as Owner Trustee) (“KCSR2008-1 Statutory Trust”), U.S. Bank Trust National Association (only in its individual capacity as expressly provided therein), MetLife Capital, Limited Partnership (as Owners Participant), Wilmington Trust Company (as Indenture Trustee) and Export Development Canada (as Loan Participant), filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended March 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.45. | ||
10 | .46 | Equipment Lease Agreement (KCSR2008-1) dated as of April 1, 2008, between KCSR2008-1 Statutory Trust (as Lessor) and KCSR (as Lessee), filed as Exhibit 10.3 to the Company’sForm 10-Q for the quarter ended March 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.46. | ||
10 | .47 | Confidential Severance Agreement and Full and General Release dated June 26, 2008, between KCSR and Arthur L. Shoener, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on July 2, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.47. | ||
10 | .48 | Employment Agreement, dated September 10, 2008, between KCSR and David Starling filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on September 15, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.48. | ||
10 | .49 | Loan and Security Agreement, dated February 26, 2008, between KCSM and Export Development Canada, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended March 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.49. | ||
10 | .50 | Loan Agreement, dated as of September 24, 2008, between KCSM and DVB Bank AG, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended September 30, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.50. | ||
10 | .51 | Underwriting Agreement, dated as of May 27, 2008, among KCSR, Morgan Stanley & Co. Incorporated, and Banc of America Securities LLC, as representatives of the underwriters listed therein, filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K, filed on June 2, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.51. | ||
10 | .52 | Underwriting Agreement, dated as of December 15, 2008, among KCSR, Morgan Stanley & Co. Incorporated, and Banc of America Securities LLC, as representatives of the underwriters listed therein, filed as Exhibit 1.1 to the Company’s Current Report onForm 8-K, filed on December 19, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.52. | ||
10 | .53 | 2009 KCSM Indenture. (See Exhibit 4.15) | ||
10 | .54 | Amended and Restated Kansas City Southern Annual Incentive Plan, as approved by the Company’s Compensation and Organization Committee on March 10, 2009, filed as Exhibit 10.3 to the Company’sForm 10-Q for the quarter ended March 31, 2009 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.54. | ||
10 | .55 | English translation of the Employment Agreement, dated April 20, 2006, between Kansas City Southern de México, S.A. de C.V. and José Guillermo Zozaya Delano, filed as Exhibit 10.4 to the Company’sForm 10-Q for the quarter ended March 31, 2009 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.55. | ||
10 | .56 | ATM Equity Offeringsm Sales Agreement dated as of April 27, 2009, between the Company and Merrill Lynch, Pierce, Fenner & Smith, Incorporated, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K on May 1, 2009 (FileNo. 1-4717) is incorporated hereby by reference as Exhibit 10.56. | ||
10 | .57 | Common Stock Purchase Agreement, dated July 31, 2009, between Kansas City Southern and the Investors, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on August 4, 2009 (FileNo. 1-4717) is incorporated herein by reference as Exhibit 10.57. | ||
10 | .58 | Confidential Separation Agreement and Full and General Release dated September 3, 2009, between KCSR and Scott E. Arvidson, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on September 10, 2009 (FileNo. 1-4717) is incorporated herein by reference as Exhibit 10.58. |
112
Exhibit | Description | |||
10 | .5.1 | Form of Non-Qualified Stock Option Award Agreement for employees under the Amended 1991 Plan, filed as Exhibit 10.8.2 to the Company’sForm 10-K for the fiscal year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.1. | ||
10 | .5.2 | Form of Non-Qualified Stock Option Award Agreement for Directors under the Amended 1991 Plan, filed as Exhibit 10.8.3 to the Company’sForm 10-K for the fiscal year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.2. | ||
10 | .5.3 | Form of Non-Qualified Stock Option Award agreement for employees under the Amended 1991 Plan (referencing threshold dates), filed as Exhibit 10.8.4 to the Company’sForm 10-K for the fiscal year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.3. | ||
10 | .5.4 | Form of Restricted Shares Award and Performance Shares Award Agreement under the Amended 1991 Plan, filed as Exhibit 10.5.4 to the Company’sForm 10-K for the fiscal year ended December 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.4. | ||
10 | .5.5 | Form of Restricted Shares Award Agreement (non-management directors) under the Amended 1991 Plan, filed as Exhibit 10.2 to the Company’s Current Report onForm 8-K, filed on May 11, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.5. | ||
10 | .5.6 | Form of Restricted Shares Award Agreement (cliff vesting) under the Amended 1991 Plan, filed as Exhibit 10.5.6 to the Company’sForm 10-K for the fiscal year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.6. | ||
10 | .5.7 | Form of Restricted Shares Award Agreement under the Amended 1991 Plan (applicable to restricted shares to be purchased), filed as Exhibit 10.8.7 to the Company’sForm 10-K for the fiscal year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.7. | ||
10 | .5.8 | Form of Restricted Shares Award and Performance Shares Award Agreement for Interim Awards under the Amended 1991 Plan, filed as Exhibit 10.5.8 to the Company’sForm 10-K for the fiscal year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.8. | ||
10 | .5.9 | Form of Restricted Shares Award Agreement (consultants) under the Amended 1991 Plan, filed as Exhibit 10.5.9 to the Company’sForm 10-K for the fiscal year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.9. | ||
10 | .5.10 | Form of Restricted Shares Award Agreement (executive plan) under the Amended 1991 Plan, filed as Exhibit 10.5.10 to the Company’sForm 10-K for the fiscal year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.5.10. | ||
10 | .5.11 | First Amendment to the Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award Plan, effective July 2, 2008, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 8, 2008 (File No. 1-4717), is incorporated herein by reference as Exhibit 10.5.11. | ||
10 | .6 | Kansas City Southern 401(k) and Profit Sharing Plan (as amended and restated, effective April 1, 2002) (the “Amended 401(k) and Profit Sharing Plan”), filed as Exhibit 10.10.1 to the Company’sForm 10-K for the fiscal year ended December 31, 2002 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6. | ||
10 | .6.1 | First Amendment to the Amended 401(k) and Profit Sharing Plan, effective January 1, 2003, filed as Exhibit 10.10.2 to the Company’sForm 10-K for the fiscal year ended December 31, 2002 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.1. | ||
10 | .6.2 | Amendment to the Amended 401(k) and Profit Sharing Plan, dated June 30, 2003 and effective as of January 1, 2001, filed as Exhibit 10.10.3 to the Company’sForm 10-K for the fiscal year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.2. | ||
10 | .6.3 | Amendment to the Amended 401(k) and Profit Sharing Plan, dated December 3, 2003 and effective as of January 1, 2003, filed as Exhibit 10.10.4 to the Company’sForm 10-K for the fiscal year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.3. |
113
Exhibit | Description | |||
10 | .6.4 | Amendment to the Amended 401(k) and Profit Sharing Plan, dated and effective August 7, 2007, filed as Exhibit 10.6.4 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.6.4. | ||
10 | .7 | Employment Agreement, as amended and restated January 1, 2001, among the Company, KCSR and Michael R. Haverty, filed as Exhibit 10.12 to the Company’sForm 10-K for the fiscal year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.7. | ||
10 | .7.1 | Addendum to Employment Agreement dated August 18, 2004 between The Kansas City Southern Railway Company, the Company and Michael R. Haverty, filed as Exhibit 10.8.1 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.7.1. | ||
10 | .7.2 | Amendment to Amended and Restated Employment Agreement effective January 1, 2005 among The Kansas City Southern Railway Company, the Company and Michael R. Haverty, filed as Exhibit 10.8.2 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.7.2. | ||
10 | .7.3 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Michael R. Haverty, is attached to thisForm 10-K as Exhibit 10.7.3. | ||
10 | .8 | Employment Agreement, dated May 15, 2006, between KCSR and Patrick J. Ottensmeyer (the “Ottensmeyer Employment Agreement”), attached as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on June 12, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.8. | ||
10 | .8.1 | Amendment No. 1 to the Ottensmeyer Employment Agreement, dated May 7, 2007, filed as Exhibit 10.4 to the Company’sForm 10-Q for the quarter ended June 30, 2007 (FileNo. 1-4717), is incorporated by reference as Exhibit 10.8.1. | ||
10 | .8.2 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Patrick J. Ottensmeyer, is attached to thisForm 10-K as Exhibit 10.8.2. | ||
10 | .9 | Employment Agreement, dated June 7, 2006, between KCSR and Michael K. Borrows, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed September 15, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.9. | ||
10 | .10 | Kansas City Southern Executive Plan, as amended and restated November 11, 2008, is attached to thisForm 10-K as Exhibit 10.10. | ||
10 | .11 | The Amended and Restated Kansas City Southern Annual Incentive Plan, as approved by the Company’s Compensation and Organization Committee on November 11, 2008 is attached to thisForm 10-K Exhibit 10.11. | ||
10 | .12 | Security Agreement, dated March 30, 2004, from KCS, KCSR and certain other subsidiaries of KCS to The Bank of Nova Scotia as Collateral Agent, filed as Exhibit 10.19.1 to the Company’sForm 10-K for the fiscal year ended December 31, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.12. | ||
10 | .12.1 | Amendment No. 1 to the Security Agreement, dated December 22, 2004, among KCSR, KCS, the subsidiary guarantors, the lenders party thereto and The Bank of Nova Scotia, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on December 29, 2004 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.12.1. | ||
10 | .12.2 | Amendment No. 1 to the Security Agreement, dated as of November 29, 2006, among KCSR, KCS, the subsidiary guarantors, The Bank of Nova Scotia, as collateral agent and administrative agent, and the lenders party thereto, filed as Exhibit 10.15.2 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.12.2. | ||
10 | .12.3 | Amended and Restated Credit Agreement, dated April 28, 2006, among KCSR, KCS, the subsidiary guarantors, the lenders party thereto, The Bank of Nova Scotia, Morgan Stanley Senior Funding, Inc., Harris Bank, N.A., LaSalle Bank National Association and Bank of Tokyo-Mitsubishi UFJ Trust Company, and Scotia Capital, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended March 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.12.3. |
114
Exhibit | Description | |||
10 | .12.4 | Amendment No. 1 to the Amended and Restated Credit Agreement, dated May 31, 2007, among KCSR, KCS, the subsidiary guarantors, the lenders party thereto and The Bank of Nova Scotia, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended June 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.12.4. | ||
10 | .13 | The 1992 Indenture. (See Exhibit 4.3) | ||
10 | .13.1 | The Supplemental Indenture, dated December 17, 1999, to the 1992 Indenture. (See Exhibit 4.3.1) | ||
10 | .14 | The 2000 Indenture. (See Exhibit 4.4) | ||
10 | .14.1 | The Supplemental Indenture, dated January 29, 2001, to the 2000 Indenture. (See Exhibit 4.4.1) | ||
10 | .14.2 | The Second Supplemental Indenture, dated June 10, 2005, to the 2000 Indenture. (See Exhibit 4.4.2) | ||
10 | .14.3 | The Third Supplemental Indenture, dated February 5, 2007, to the 2000 Indenture. (See Exhibit 4.4.3) | ||
10 | .14.3 | The Fourth Supplemental Indenture, dated December 18, 2008, to the 2000 Indenture. (See Exhibit 4.4.4) | ||
10 | .15 | Intercompany Agreement, dated August 16, 1999, between the Company and Stilwell Financial Inc., filed as Exhibit 10.23 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 10.15. | ||
10 | .16 | Tax Disaffiliation Agreement, dated August 16, 1999, between the Company and Stilwell Financial Inc., filed as Exhibit 10.24 to the Company’s 2001S-4 Registration Statement (RegistrationNo. 333-54262), is incorporated herein by reference as Exhibit 10.16. | ||
10 | .17 | Lease Agreement, originally dated June 26, 2001 and amended March 26, 2002, between KCSR and Broadway Square Partners LLP, filed as Exhibit 10.34 to the Company’sForm 10-K for the fiscal year ended December 31, 2001 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.17. | ||
10 | .18 | The June 12, 2002 Indenture. (See Exhibit 4.6) | ||
10 | .18.1 | The Supplemental Indenture, dated June 10, 2005, to the June 12, 2002 Indenture. (See Exhibit 4.6.2) | ||
10 | .18.2 | The Second Supplemental Indenture, dated February 5, 2007, to the June 12, 2002 Indenture. (See Exhibit 4.6.3) | ||
10 | .18.3 | The Third Supplemental Indenture, dated January 27, 2009, to the June 12, 2002 Indenture. (See Exhibit 4.6.4) | ||
10 | .19 | Agreement to Forego Compensation between A. Edward Allinson and the Company, fully executed on March 30, 2001; Loan Agreement between A. Edward Allinson and the Company fully executed on September 18, 2001; and the Promissory Note executed by the Trustees of The A. Edward Allinson Irrevocable Trust Agreement dated, June 4, 2001, Courtney Ann Arnot, A. Edward Allinson III and Bradford J. Allinson, Trustees, as Maker, and the Company, as Holder, filed as Exhibit 10.36 to the Company’sForm 10-K for the fiscal year ended December 31, 2002 (FileNo. 1-4717), are incorporated herein by reference as Exhibit 10.19. | ||
10 | .20 | Agreement to Forego Compensation between Michael G. Fitt and the Company, fully executed on March 30, 2001; Loan Agreement between Michael G. Fitt and the Company, fully executed on September 7, 2001; and the Promissory Note executed by the Trustees of The Michael G. and Doreen E. Fitt Irrevocable Insurance Trust, Anne E. Skyes, Colin M-D. Fitt and Ian D.G. Fitt, Trustees, as Maker, and the Company, as Holder, filed as Exhibit 10.37 to the Company’sForm 10-K for the fiscal year ended December 31, 2002 (FileNo. 1-4717), are incorporated herein by reference as Exhibit 10.20. | ||
10 | .21 | Kansas City Southern Employee Stock Ownership Plan, as amended and restated, effective April 1, 2002, (the “Amended Employee Stock Ownership Plan”), filed as Exhibit 10.38 to the Company’sForm 10-K for the fiscal year ended December 31, 2002 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.21. |
115
Exhibit | Description | |||
10 | .21.1 | Amendment to the Amended Employee Stock Ownership Plan, dated June 30, 2003 and effective as of January 1, 2001, filed as Exhibit 10.38.2 to the Company’sForm 10-K for the fiscal year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.21.1. | ||
10 | .21.2 | Amendment to the Amended Employee Stock Ownership Plan, dated December 3, 2003 and effective as of January 1, 2003, filed as Exhibit 10.38.3 to the Company’sForm 10-K for the fiscal year ended December 31, 2003 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.21.2. | ||
10 | .21.3 | Amendment to the Amended Employee Stock Ownership Plan, dated and effective October 29, 2007, filed as Exhibit 10.24.3 to the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.21.3. | ||
10 | .22 | The Stockholders’ Agreement. (See Exhibit 2.1) | ||
10 | .23 | The Acquisition Registration Rights Agreement. (See Exhibit 2.2) | ||
10 | .24 | The 2005 Rights Agreement. (See Exhibit 2.3) | ||
10 | .25 | Transaction Agreement, dated December 1, 2005, among the Company, KCSR, Norfolk Southern Corporation and The Alabama Great Southern Railroad Company (the “Transaction Agreement”), filed as Exhibit 10.46 to the Company’sForm 10-K for the fiscal year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.25. | ||
10 | .25.1 | Amendment No. 1 to the Transaction Agreement, dated January 17, 2006, filed as Exhibit 10.47 to the Company’sForm 10-K for the fiscal year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.25.1. | ||
10 | .25.2 | Amendment No. 2 to the Transaction Agreement, dated May 1, 2006, filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended March 31, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.25.2. | ||
10 | .26 | Participation Agreement, dated December 20, 2005, among KCSR, KCSRTrust 2005-1 (acting through Wilmington Trust Company, as owner trustee) (“2005 Trust”), GS Leasing (KCSR2005-1) LLC, Wells Fargo Bank Northwest, National Association, Export Development Canada, and KfW, filed as Exhibit 10.48 to the Company’sForm 10-K for the fiscal year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.26. | ||
10 | .27 | Equipment Lease Agreement, dated December 20, 2005, between KCSR and the KCSRTrust 2005-1, filed as Exhibit 10.49 to the Company’sForm 10-K for the fiscal year ended December 31, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.27. | ||
10 | .28 | Participation Agreement, dated August 2, 2006, among KCSR, KCSRTrust 2006-1 (acting through Wilmington Trust Company, as owner trustee) (“2006 Trust”), HSH Nordbank AG, New York Branch, Wells Fargo Bank Northwest, National Association, and DVB Bank AG, filed as Exhibit 10.4 to the Company’sForm 10-Q for the quarter ended September 30, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.28. | ||
10 | .29 | Equipment Lease Agreement, dated August 2, 2006, between KCSR and the KCSRTrust 2006-1, filed as Exhibit 10.4 to the Company’sForm 10-Q for the quarter ended September 30, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.29. | ||
10 | .30 | Limited Liability Company Agreement of Meridian Speedway, LLC, dated May 1, 2006, between the Alabama Great Southern Railroad Company and the Company, filed as Exhibit 10.3 to the Company’sForm 10-Q for the quarter ended March 31, 2006, (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.30. | ||
10 | .31 | Underwriting Agreement, dated December 4, 2006, among the Company, Morgan Stanley & Co. Incorporated, and Grupo TMM, S.A., filed as Exhibit 1.1 to the Company’s Current Report onForm 8-K filed December 5, 2006 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.31. | ||
10 | .32 | The 2005 Indenture. (See Exhibit 4.10) | ||
10 | .33 | The 2006 Indenture. (See Exhibit 4.11) | ||
10 | .34 | The 2006 Registration Rights Agreement. (See Exhibit 2.4) |
116
Exhibit | Description | |||
10 | .35 | Lease Agreement, dated September 25, 2005, between KCSR and Louisiana Southern Railroad, Inc., filed as Exhibit 10.5 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.35. | ||
10 | .36 | Lease Agreement, dated September 25, 2005, between KCSR and Alabama Southern Railroad, Inc., filed as Exhibit 10.6 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.36. | ||
10 | .37 | Lease Agreement, dated September 25, 2005, between KCSR and Arkansas Southern Railroad, Inc., filed as Exhibit 10.7 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.37. | ||
10 | .38 | Lease Agreement, dated September 25, 2005, between KCSR and Arkansas Southern Railroad, Inc., filed as Exhibit 10.8 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.38. | ||
10 | .39 | Lease Agreement, dated September 25, 2005, between KCSR and Louisiana Southern Railroad, Inc., filed as Exhibit 10.9 to the Company’sForm 10-Q for the quarter ended June 30, 2005 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.39. | ||
10 | .40 | Equipment Lease Agreement, dated April 4, 2007, between KCSR and High Ridge Leasing, LLC, filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended March 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.40. | ||
10 | .41 | 2007 Registration Rights Agreement. (See Exhibit 2.5) | ||
10 | .42 | 2007 Indenture. (See Exhibit 4.12) | ||
10 | .43 | Credit Agreement, dated June 14, 2007, among KCSM as borrower, Arrendadora KCSM as guarantor, Bank of America, N.A. as administrative agent, and the other lenders named therein (the “2007 KCSM Credit Agreement”), filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended June 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.43. | ||
10 | .43.1 | Amendment No. 1 and Waiver No. 1, dated December 19, 2007, to the 2007 KCSM Credit Agreement, filed as Exhibit 10.49.2 to the Company’s Form 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.43.1. | ||
10 | .43.2 | Amendment No. 2, dated as of December 19, 2008, to the 2007 KCSM Credit Agreement, is attached to thisForm 10-K as Exhibit 10.43.2. | ||
10 | .43.3 | Amendment No. 3 and Waiver No. 2 dated as of February 11, 2009, to the 2007 KCSM Credit Agreement is attached to this Form 10-K as Exhibit 10.43.3. | ||
10 | .44 | Settlement Agreement, dated September 21, 2007, among KCS and Grupo TMM, S.A.B., TMM Logistics, S.A. de C.V., and VEX Asesores Corporativos, S.A. de C.V. (formerly José F. Serrano International Business, S.A. de C.V.), filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended September 30, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.44. | ||
10 | .45 | Participation Agreement, dated September 27, 2007, among KCSR, KCSR2007-1 Statutory Trust (acting through U.S. Bank Trust National Association, as owner trustee) (“2007 Trust”), U.S. Bank Trust National Association, GS Leasing (KCSR2007-1) LLC, Wilimington Trust Company, and KfW, filed with the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.45. | ||
10 | .46 | Equipment Lease Agreement, dated September 27, 2007, between KCSR and the KCSR2007-1 Statutory Trust, filed with the Company’sForm 10-K for the year ended December 31, 2007 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.46. | ||
10 | .47 | Kansas City Southern 2008 Stock Option and Performance Award Plan (the “2008 Plan”), filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on October 7, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.47. | ||
10 | .47.1 | Form of Non-Qualified Stock Option Award Agreement under the 2008 Plan, is attached to thisForm 10-K as Exhibit 10.47.1. |
117
Exhibit | Description | |||
10 | .47.2 | Form of Restricted Shares Award Agreement (cliff vesting) under the 2008 Plan, is attached to thisForm 10-K as Exhibit 10.47.2. | ||
10 | .47.3 | Form of Restricted Shares Award Agreement (graded vesting) under the 2008 Plan, is attached to thisForm 10-K as Exhibit 10.47.3. | ||
10 | .47.4 | Form of Restricted Shares Award Agreement under the 2008 Plan (applicable to restricted shares to be purchased), is attached to thisForm 10-K as Exhibit 10.47.4. | ||
10 | .47.5 | Form of Restricted Shares Award and Performance Shares Award Agreement under the 2008 Plan, is attached to thisForm 10-K as Exhibit 10.47.5. | ||
10 | .48 | The May 2008 Indenture. (See Exhibit 4.13) | ||
10 | .49 | The December 2008 Indenture. (See Exhibit 4.14) | ||
10 | .50 | Employment Agreement dated May 1, 2000, between Kansas City Southern Industries, Inc. and Scott E. Arvidson, is attached to thisForm 10-K as Exhibit 10.50. | ||
10 | .50.1 | Amendment to Employment Agreement dated January 1, 2001, between Kansas City Southern Industries, Inc. and Scott E. Arvidson, is attached to thisForm 10-K as Exhibit 10.50.1. | ||
10 | .50.2 | Addendum to Employment Agreement dated August 18, 2004, between the Company and Scott E. Arvidson, is attached to thisForm 10-K as Exhibit 10.50.2. | ||
10 | .50.3 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Scott E. Arvidson, is attached to this Form 10-K as Exhibit 10.50.3. | ||
10 | .51 | Employment Agreement dated April 1, 2003, between the Company and Larry M. Lawrence, is attached to thisForm 10-K as Exhibit 10.51. | ||
10 | .51.1 | Addendum to Employment Agreement dated August 18, 2004, between the Company and Larry M. Lawrence, is attached to thisForm 10-K as Exhibit 10.51.1. | ||
10 | .51.2 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Larry M. Lawrence, is attached to thisForm 10-K as Exhibit 10.51.2. | ||
10 | .52 | Participation Agreement (KCSR2008-1) dated as of April 1, 2008, among KCSR, KCSR2008-1 Statutory Trust (acting through U.S. Bank Trust National Association, not in its individual capacity, but solely as Owner Trustee) (“KCSR2008-1 Statutory Trust”), U.S. Bank Trust National Association (only in its individual capacity as expressly provided therein), MetLife Capital, Limited Partnership (as Owners Participant), Wilmington Trust Company (as Indenture Trustee) and Export Development Canada (as Loan Participant), filed as Exhibit 10.2 to the Company’sForm 10-Q for the quarter ended March 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.52. | ||
10 | .53 | Equipment Lease Agreement (KCSR2008-1) dated as of April 1, 2008, between KCSR2008-1 Statutory Trust (as Lessor) and KCSR (as Lessee), filed as Exhibit 10.3 to the Company’sForm 10-Q for the quarter ended March 31, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.53. | ||
10 | .54 | Confidential Severance Agreement and Full and General Release dated June 26, 2008, between KCSR and Arthur L. Shoener, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on July 2, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.54. | ||
10 | .55 | Employment Agreement dated September 10, 2008, between KCSR and David Starling filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K filed on September 15, 2008 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 10.54. | ||
10 | .56 | Loan and Security Agreement dated February 26, 2008, between KCSM and Export Development Canada, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended March 31, 2008(File No. 1-4717), is incorporated herein by reference as Exhibit 10.56. | ||
10 | .57 | Loan Agreement dated as of September 24, 2008, between KCSM and DVB Bank AG, filed as Exhibit 10.1 to the Company’sForm 10-Q for the quarter ended September 30, 2008(File No. 1-4717), is incorporated herein by reference as Exhibit 10.57. |
118
Exhibit | Description | |||
10 | .58 | Underwriting Agreement dated as of May 27, 2008, among KCSR, Morgan Stanley & Co. Incorporated, and Banc of America Securities LLC, as representatives of the underwriters listed therein, filed as Exhibit 4.1 to the Company’s Current Report onForm 8-K filed on June 2, 2008 (File No. 1-4717), is incorporated herein by reference as Exhibit 10.58. | ||
10 | .59 | Underwriting Agreement dated as of December 15, 2008, among KCSR, Morgan Stanley & Co. Incorporated, and Banc of America Securities LLC, as representatives of the underwriters listed therein, filed as Exhibit 1.1 to the Company’s Current Report onForm 8-K filed on December 19, 2008(File No. 1-4717), is incorporated herein by reference as Exhibit 10.59. | ||
(12) | Statements Re Computation of Ratios | |||
12 | .1 | The Computation of Ratio of Earnings to Fixed Charges prepared pursuant to Item 601(b)(12) ofRegulation S-K is attached to thisForm 10-K as Exhibit 12.1. | ||
(21) | Subsidiaries of the Company | |||
21 | .1 | The list of the Subsidiaries of the Company prepared pursuant to Item 601(b)(21) ofRegulation S-K is attached to thisForm 10-K as Exhibit 21.1. | ||
(23) | Consents of Experts and Counsel | |||
23 | .1 | Consent of KPMG LLP is attached to thisForm 10-K as Exhibit 23.1. | ||
23 | .2 | Consent of KPMG Cárdenas Dosal, S.C. is attached to thisForm 10-K as Exhibit 23.2. | ||
(24) | Power of Attorney (included on the signature page). | |||
(31) | Section 302 Certifications | |||
31 | .1 | Certification of Michael R. Haverty, Chief Executive Officer of the Company, is attached to thisForm 10-K as Exhibit 31.1. | ||
31 | .2 | Certification of Michael W. Upchurch, Chief Financial Officer of the Company, is attached to thisForm 10-K as Exhibit 31.2. | ||
(32) | Section 1350 Certifications | |||
32 | .1 | Certification furnished pursuant to 18 U.S.C. Section 1350 of Michael R. Haverty, Chief Executive Officer of the Company, is attached to thisForm 10-K as Exhibit 32.1. | ||
32 | .2 | Certification furnished pursuant to 18 U.S.C. Section 1350 of Michael W. Upchurch, Chief Financial Officer of the Company, is attached to thisForm 10-K as Exhibit 32.2. |
Exhibit | Description | |||
10 | .59 | Employment Agreement, dated September 28, 2009, between KCSR and Mary K. Stadler, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on October 2, 2009 (FileNo. 1-4717) is incorporated herein by reference as Exhibit 10.59. | ||
10 | .60 | The 2009 KCSM Supplemental Indenture. (See Exhibit 4.15.1) | ||
10 | .61 | 2010 KCSM Indenture. (See Exhibit 4.16) | ||
10 | .62 | Placement Agreement, dated January 7, 2010, between KCSM and Banc of America Securities LLC, as representative of the placement agents listed therein, filed as Exhibit 10.1 to KCSM’s Current Report onForm 8-K, filed on January 13, 2010 (FileNo. 333-08322), is incorporated herein by reference as Exhibit 10.62. | ||
10 | .63 | Employment Agreement, dated August 15, 2008, between KCSR and Michael W. Upchurch, filed as Exhibit 10.1 to the Company’s Current Report onForm 8-K, filed on October 22, 2008 (FileNo. 1-4717) is incorporated herein by reference as Exhibit 10.63. | ||
(12) | Statements Re Computation of Ratios | |||
12 | .1 | The Computation of Ratio of Earnings to Fixed Charges prepared pursuant to Item 601(b)(12) ofRegulation S-K is attached to thisForm 10-K as Exhibit 12.1. | ||
(18) | Letter Re Change in Accounting Principles | |||
18 | .1 | Letter regarding change in accounting principles, filed as Exhibit 18.1 to the Company’sForm 10-Q for the quarter ended September 30, 2009 (FileNo. 1-4717), is incorporated herein by reference as Exhibit 18.1. | ||
(21) | Subsidiaries of the Company | |||
21 | .1 | The list of the Subsidiaries of the Company prepared pursuant to Item 601(b)(21) ofRegulation S-K is attached to thisForm 10-K as Exhibit 21.1. | ||
(23) | Consents of Experts and Counsel | |||
23 | .1 | Consent of KPMG LLP is attached to thisForm 10-K as Exhibit 23.1. | ||
(24) | Power of Attorney (included on the signature page). | |||
(31) | Section 302 Certifications | |||
31 | .1 | Certification of Michael R. Haverty, Chief Executive Officer of the Company, is attached to thisForm 10-K as Exhibit 31.1. | ||
31 | .2 | Certification of Michael W. Upchurch, Chief Financial Officer of the Company, is attached to thisForm 10-K as Exhibit 31.2. | ||
(32) | Section 1350 Certifications | |||
32 | .1 | Certification of Michael R. Haverty, Chief Executive Officer of the Company, furnished pursuant to 18 U.S.C. Section 1350, is attached to thisForm 10-K as Exhibit 32.1. | ||
32 | .2 | Certification of Michael W. Upchurch, Chief Financial Officer of the Company, furnished pursuant to 18 U.S.C. Section 1350, is attached to thisForm 10-K as Exhibit 32.2. | ||
(101) | Interactive Data File | |||
101 | The following financial information from Kansas City Southern’s Annual Report onForm 10-K for the year ended December 31, 2009, formatted in XBRL (Extensible Business Reporting Language) includes:(i) Consolidated Statements of Income for the years ended December 31, 2009, 2008 and 2007, (ii) Consolidated Balance Sheets as of December 31, 2009 and December 31, 2008, (iii) Consolidated Statements of Cash Flows for the years ended December 31, 2009, 2008, and 2007, (iv) Consolidated Statements of Changes in Equity and Comprehensive Income for the Three Years ended December 2009, 2008, and 2007 and(v) the Notes to Consolidated Financial Statements, tagged as blocks of text |
119113
By: | /s/ Michael R. Haverty |
/s/ Michael R. Haverty Michael R. Haverty | Chairman of the Board and Chief Executive Officer and Director. | |||
/s/ David L. Starling David L. Starling | President and Chief Operating Officer. | |||
/s/ Michael W. Upchurch Michael W. Upchurch | Executive Vice President and Chief Financial Officer (Principal Financial Officer). | |||
/s/ | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer). | |||
/s/ Henry R. Davis Henry R. Davis | Director. | |||
/s/ Robert J. Druten Robert J. Druten | Director. | |||
/s/ Terrence P. Dunn Terrence P. Dunn | Director. |
120114
James R. Jones | Director. | |||
/s/ Thomas A. McDonnell Thomas A. McDonnell | Director. | |||
/s/ Karen L. Pletz Karen L. Pletz | Director. | |||
/s/ Rodney E. Slater Rodney E. Slater | Director. |
121115
Regulation S-K | ||||||||
Item 601(b) | ||||||||
Exhibit | Document | Exhibit | ||||||
10 | .7.3 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Michael R. Haverty. | 10 | |||||
10 | .8.2 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Patrick J. Ottensmeyer. | 10 | |||||
10 | .10 | Kansas City Southern Executive Plan, as amended and restated November 11, 2008. | 10 | |||||
10 | .11 | Amended and Restated Kansas City Southern Annual Incentive Plan, as approved by the Company’s Compensation and Organization Committee on November 11, 2008. | 10 | |||||
10 | .43.2 | Amendment No. 2, dated as of December 19, 2008, to the 2007 KCSM Credit Agreement. | 10 | |||||
10 | .43.3 | Amendment No. 3 and Waiver No. 2, dated as of February 11, 2009, to the KCSM 2007 Credit Agreement. | 10 | |||||
10 | .47.1 | Form of Non-Qualified Stock Option Award Agreement under the 2008 Plan. | 10 | |||||
10 | .47.2 | Form of Restricted Shares Award Agreement (cliff vesting) under the 2008 Plan. | 10 | |||||
10 | .47.3 | Form of Restricted Shares Award Agreement (graded vesting) under the 2008 Plan. | 10 | |||||
10 | .47.4 | Form of Restricted Shares Award Agreement under the 2008 Plan (applicable to restricted shares to be purchased). | 10 | |||||
10 | .47.5 | Form of Restricted Shares and Performance shares Award Agreement under the 2008 Plan. | 10 | |||||
10 | .50 | Employment Agreement dated May 1, 2000, between Kansas City Southern Industries, Inc. and Scott E. Arvidson. | 10 | |||||
10 | .50.1 | Amendment to Employment Agreement dated January 1, 2001, between Kansas City Southern Industries, Inc. and Scott E. Arvidson. | 10 | |||||
10 | .50.2 | Addendum to Employment Agreement dated August 18, 2004, between the Company and Scott E. Arvidson. | 10 | |||||
10 | .50.3 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Scott E. Arvidson. | 10 | |||||
10 | .51 | Employment Agreement dated April 1, 2003, between the Company and Larry M. Lawrence. | 10 | |||||
10 | .51.1 | Addendum to Employment Agreement dated August 18, 2004, between the Company and Larry M. Lawrence | 10 | |||||
10 | .51.2 | Addendum to Employment Agreement effective January 1, 2009, between the Company, KCSR and Larry M. Lawrence. | 10 | |||||
12 | .1 | Computation of Ratio of Earnings to Fixed Charges | 12 | |||||
21 | .1 | Subsidiaries of the Company | 21 | |||||
23 | .1 | Consent of KPMG LLP | 23 | |||||
23 | .2 | Consent of KPMG Cárdenas Dosal, S.C | 23 | |||||
31 | .1 | Certification of Michael R. Haverty pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | 31 | |||||
31 | .2 | Certification of Michael W. Upchurch pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | 31 |
Regulation S-K | ||||||
Item 601(b) | ||||||
Exhibit | Document | Exhibit | ||||
4.15.1 | Supplemental Indenture, dated November 12, 2009, to the 2009 KCSM Indenture. | 4 and 10 | ||||
12.1 | Computation of Ratio of Earnings to Fixed Charges | 12 | ||||
21.1 | Subsidiaries of the Company | 21 | ||||
23.1 | Consent of KPMG LLP | 23 | ||||
31.1 | Certification of Michael R. Haverty pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | 31 | ||||
31.2 | Certification of Michael W. Upchurch pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | 31 | ||||
32.1 | Certification of Michael R. Haverty furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 | 32 | ||||
32.2 | Certification of Michael W. Upchurch furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 32 | ||||
101 | The following financial information from Kansas City Southern’s Annual Report onForm 10-K for the year ended December 31, 2009, formatted in XBRL (Extensible Business Reporting Language) includes:(i) Consolidated Statements of Income for the years ended December 31, 2009, 2008 and 2007, (ii) Consolidated Balance Sheets as of December 31, 2009 and December 31, 2008, (iii) Consolidated Statements of Cash Flows for the years ended December 31, 2009, 2008, and 2007, (iv) Consolidated Statements of Changes in Equity and Comprehensive Income for the Three Years ended December 2009, 2008, and 2007, and(v) the Notes to Consolidated Financial Statements, tagged as blocks of text | 100 |
122116
Regulation S-K | ||||||||
Item 601(b) | ||||||||
Exhibit | Document | Exhibit | ||||||
32 | .1 | Certification of Michael R. Haverty furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 | 32 | |||||
32 | .2 | Certification of Michael W. Upchurch furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 32 |
123