Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 20, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | KANSAS CITY SOUTHERN | ||
Entity Central Index Key | 54,480 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 106,643,666 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 9,660 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 2,334.2 | $ 2,418.8 | $ 2,577.1 |
Operating expenses: | |||
Compensation and benefits | 462.4 | 442.2 | 474.5 |
Purchased services | 208.5 | 223 | 245.2 |
Fuel | 253.8 | 306.9 | 415.9 |
Mexican fuel excise tax credit | (62.8) | 0 | 0 |
Equipment costs | 120 | 119.4 | 119.2 |
Depreciation and amortization | 305 | 284.6 | 258.1 |
Materials and other | 228.8 | 229.3 | 216.8 |
Lease termination costs | 0 | 9.6 | 38.3 |
Total operating expenses | 1,515.7 | 1,615 | 1,768 |
Operating income | 818.5 | 803.8 | 809.1 |
Equity in net earnings of affiliates | 14.6 | 18.3 | 21.1 |
Interest expense | (97.7) | (81.9) | (72.8) |
Debt retirement and exchange costs | 0 | (7.6) | (6.6) |
Foreign exchange loss | (72) | (56.6) | (35.5) |
Other expense, net | (0.7) | (3.4) | (2.2) |
Income before income taxes | 662.7 | 672.6 | 713.1 |
Income tax expense | 182.8 | 187.3 | 208.8 |
Net income | 479.9 | 485.3 | 504.3 |
Less: Net income attributable to noncontrolling interest | 1.8 | 1.8 | 1.7 |
Net income attributable to Kansas City Southern and subsidiaries | 478.1 | 483.5 | 502.6 |
Preferred stock dividends | 0.2 | 0.2 | 0.2 |
Net income available to common stockholders | $ 477.9 | $ 483.3 | $ 502.4 |
Earnings per share: | |||
Basic earnings per share | $ 4.44 | $ 4.41 | $ 4.56 |
Diluted earnings per share | $ 4.43 | $ 4.40 | $ 4.55 |
Average shares outstanding (in thousands): | |||
Basic | 107,560 | 109,709 | 110,163 |
Potentially dilutive common shares | 201 | 206 | 270 |
Diluted | 107,761 | 109,915 | 110,433 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 479.9 | $ 485.3 | $ 504.3 |
Other comprehensive loss: | |||
Reclassification adjustment from cash flow hedges included in net income, net of tax of less than $0.1 million | 0 | 0 | 0.1 |
Amortization of prior service credit, net of tax of less than $(0.1) million and $(0.1) million | 0 | (0.1) | (0.2) |
Foreign currency translation adjustments, net of tax of $(1.0) million, $(0.8) million and $(0.7) million | (1.5) | (1.4) | (1.1) |
Other comprehensive loss | (1.5) | (1.5) | (1.2) |
Comprehensive income | 478.4 | 483.8 | 503.1 |
Less: comprehensive income attributable to noncontrolling interest | 1.8 | 1.8 | 1.7 |
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ 476.6 | $ 482 | $ 501.4 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tax effect on reclassification adjustment from cash flow hedges included in net income | $ 0 | ||
Tax effect on amortization of prior service credit | $ 0 | (0.1) | |
Tax effect on foreign currency translation adjustments | $ (1) | $ (0.8) | $ (0.7) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 170.6 | $ 136.6 |
Accounts receivable, net | 191 | 171.9 |
Materials and supplies | 152.6 | 137.9 |
Other current assets | 133.8 | 90.6 |
Total current assets | 648 | 537 |
Investments | 32.9 | 34.7 |
Property and equipment (including concession assets), net | 8,069.7 | 7,705.4 |
Other assets | 66.9 | 63.9 |
Total assets | 8,817.5 | 8,341 |
Current liabilities: | ||
Long-term debt due within one year | 25.4 | 276.1 |
Short-term borrowings | 181.3 | 80 |
Accounts payable and accrued liabilities | 537.7 | 401.5 |
Total current liabilities | 744.4 | 757.6 |
Long-term debt | 2,271.5 | 2,045 |
Deferred income taxes | 1,289.3 | 1,191.1 |
Other noncurrent liabilities and deferred credits | 107.8 | 122.6 |
Total liabilities | 4,413 | 4,116.3 |
Stockholders’ equity: | ||
$.01 par, common stock, 400,000,000 shares authorized, 123,352,185 shares issued; 106,606,619 and 108,461,144 shares outstanding at December 31, 2016 and 2015, respectively | 1.1 | 1.1 |
Additional paid-in capital | 954.8 | 947.1 |
Retained earnings | 3,134.1 | 2,964.7 |
Accumulated other comprehensive loss | (6.2) | (4.7) |
Total stockholders’ equity | 4,089.9 | 3,914.3 |
Noncontrolling interest | 314.6 | 310.4 |
Total equity | 4,404.5 | 4,224.7 |
Total liabilities and equity | 8,817.5 | 8,341 |
$25 Par Preferred Stock [Member] | ||
Stockholders’ equity: | ||
$25 par, 4% noncumulative, preferred stock, 840,000 shares authorized, 649,736 shares issued, 242,170 shares outstanding | $ 6.1 | $ 6.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders’ equity: | |||
Common Stock, Par Value | $ 0.01 | $ 0.01 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |
Common Stock, Shares Issued | 123,352,185 | 123,352,185 | |
Common Stock, Shares Outstanding | 106,606,619 | 108,461,144 | |
$25 Par Preferred Stock [Member] | |||
Stockholders’ equity: | |||
Preferred Stock, Par Value | $ 25 | $ 25 | $ 25 |
Preferred Stock, Dividend Rate | 4.00% | 4.00% | |
Preferred Stock, Shares Authorized | 840,000 | 840,000 | |
Preferred Stock, Shares Issued | 649,736 | 649,736 | |
Preferred Stock, Shares Outstanding | 242,170 | 242,170 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Operating activities: | |||
Net income | $ 479.9 | $ 485.3 | $ 504.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 305 | 284.6 | 258.1 |
Deferred income taxes | 104.8 | 135.8 | 140.1 |
Equity in net earnings of affiliates | (14.6) | (18.3) | (21.1) |
Share-based compensation | 19.2 | 11.4 | 10 |
Excess tax benefit from share-based compensation | (5.7) | 0.1 | 0.7 |
Distributions from unconsolidated affiliates | 13 | 16.5 | 25.5 |
Debt retirement and exchange costs | 0 | 7.6 | 6.6 |
Unrealized loss on foreign currency derivative instruments | 41.1 | 46 | 4.3 |
Mexican fuel excise tax credit | (62.8) | 0 | 0 |
Changes in working capital items: | |||
Accounts receivable | (18.3) | 12 | 17.2 |
Materials and supplies | (14.2) | (26.2) | 9.2 |
Other current assets | 9.9 | (10.1) | (10) |
Accounts payable and accrued liabilities | 55.8 | (31.4) | (26.1) |
Other, net | 0.2 | (4) | (12.8) |
Net cash provided by operating activities | 913.3 | 909.3 | 906 |
Investing activities: | |||
Capital expenditures | (563.9) | (688) | (668.2) |
Purchase or replacement of equipment under operating leases | (26.6) | (144.2) | (302.1) |
Property investments in MSLLC | (33.1) | (17.4) | (26.7) |
Other, net | (4.6) | (23.4) | 14.1 |
Net cash used for investing activities | (628.2) | (873) | (982.9) |
Financing activities: | |||
Proceeds from short-term borrowings | 8,698.7 | 10,866.2 | 15,368.8 |
Repayment of short-term borrowings | (8,597.9) | (11,237.3) | (14,920.2) |
Proceeds from issuance of long-term debt | 248.7 | 623.7 | 175 |
Repayment of long-term debt | (276.4) | (149.8) | (508) |
Dividends paid | (142.8) | (140.1) | (116.6) |
Shares repurchased | (185.4) | (194.2) | 0 |
Debt costs | (2.6) | (20.3) | (4.9) |
Excess tax benefit from share-based compensation | 5.7 | (0.1) | (0.7) |
Proceeds from employee stock plans | 0.9 | 4.2 | 2 |
Net cash used for financing activities | (251.1) | (247.7) | (4.6) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 34 | (211.4) | (81.5) |
At beginning of year | 136.6 | 348 | 429.5 |
At end of year | 170.6 | 136.6 | 348 |
Non-cash investing and financing activities: | |||
Capital expenditures and purchase or replacement of equipment under operating lease accrued but not yet paid at end of year | 64 | 43.9 | 83.2 |
Capital lease obligations incurred | 2.4 | 4.7 | 9.1 |
Non-cash asset acquisitions | 4.8 | 7.6 | 5.9 |
Dividends accrued but not yet paid at end of year | 35.2 | 35.9 | 31 |
Cash payments: | |||
Interest paid, net of amounts capitalized | 84.3 | 81.1 | 72.5 |
Income tax payments, net of refunds | $ 40.5 | $ 40.3 | $ 62.9 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | $25 Par Preferred Stock [Member] | $.01 Par Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] | $25 Par Preferred Stock [Member] | $25 Par Preferred Stock [Member]Retained Earnings [Member] |
Balance at Dec. 31, 2013 | $ 3,676.6 | $ 6.1 | $ 1.1 | $ 942.5 | $ 2,422.9 | $ (2) | $ 306 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 504.3 | 502.6 | 1.7 | ||||||
Other comprehensive loss | (1.2) | (1.2) | |||||||
Contributions from noncontrolling interest | 0.9 | 0.9 | |||||||
Dividends on common stock | (123.6) | (123.6) | |||||||
Dividends on preferred stock | $ (0.2) | $ (0.2) | |||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | (2) | (2) | |||||||
Excess tax benefit from share-based compensation | (0.7) | (0.7) | |||||||
Share-based compensation | 10 | 10 | |||||||
Balance at Dec. 31, 2014 | 4,064.1 | 6.1 | 1.1 | 949.8 | 2,801.7 | (3.2) | 308.6 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 485.3 | 483.5 | 1.8 | ||||||
Other comprehensive loss | (1.5) | (1.5) | |||||||
Dividends on common stock | (144.8) | (144.8) | |||||||
Dividends on preferred stock | (0.2) | (0.2) | |||||||
Share repurchases | (194.2) | (18.7) | (175.5) | ||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 4.7 | 4.7 | |||||||
Excess tax benefit from share-based compensation | (0.1) | (0.1) | |||||||
Share-based compensation | 11.4 | 11.4 | |||||||
Balance at Dec. 31, 2015 | 4,224.7 | 6.1 | 1.1 | 947.1 | 2,964.7 | (4.7) | 310.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 479.9 | 478.1 | 1.8 | ||||||
Other comprehensive loss | (1.5) | (1.5) | |||||||
Contributions from noncontrolling interest | 2.4 | 2.4 | |||||||
Dividends on common stock | (141.9) | (141.9) | |||||||
Dividends on preferred stock | $ (0.2) | $ (0.2) | |||||||
Share repurchases | (185.4) | (18.8) | (166.6) | ||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 1.6 | 1.6 | |||||||
Excess tax benefit from share-based compensation | 5.7 | 5.7 | |||||||
Share-based compensation | 19.2 | 19.2 | |||||||
Balance at Dec. 31, 2016 | $ 4,404.5 | $ 6.1 | $ 1.1 | $ 954.8 | $ 3,134.1 | $ (6.2) | $ 314.6 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock, Dividends Per Share | $ 1.32 | $ 1.32 | $ 1.12 |
$25 Par Preferred Stock [Member] | |||
Preferred Stock, Par Value | 25 | 25 | 25 |
Preferred Stock, Dividends Per Share | $ 1 | $ 1 | $ 1 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Kansas City Southern (“KCS” or the “Company”), a Delaware corporation, is a holding company with principal operations in rail transportation. The Company is engaged primarily in the freight rail transportation business operating through a single coordinated rail network under one reportable business segment. The Company generates revenues and cash flows by providing its customers with freight delivery services both within its regions, and throughout North America through connections with other Class I rail carriers. KCS’s customers conduct business in a number of different industries, including electric-generating utilities, chemical and petroleum products, paper and forest products, agriculture and mineral products, automotive products and intermodal transportation. The primary subsidiaries of the Company consist of the following: • The Kansas City Southern Railway Company (“KCSR”), a wholly-owned consolidated subsidiary. KCSR is a U.S. Class I railroad that services the midwest and southeast regions of the United States; • Kansas City Southern de México, S.A. de C.V. (“KCSM”), a wholly-owned consolidated 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”); • KCSM Servicios, S.A. de C.V. (“KCSM Servicios”), a wholly-owned consolidated subsidiary which provides employee services to KCSM; • Meridian Speedway, LLC (“MSLLC”), a seventy percent -owned consolidated affiliate. MSLLC owns the former KCSR rail line between Meridian, Mississippi and Shreveport, Louisiana, which is the portion of the rail line between Dallas, Texas and Meridian known as the “Meridian Speedway”. Including equity investments in: • Panama Canal Railway Company (“PCRC”), a fifty percent -owned unconsolidated affiliate which provides ocean to ocean freight and passenger services along the Panama Canal; • 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; and • PTC-220, LLC (“PTC-220”), a fourteen percent -owned unconsolidated affiliate that holds the licenses to large blocks of radio spectrum and other assets for the deployment of positive train control. The KCSM Concession. KCSM holds a concession from the Mexican government until June 2047 (exclusive service through 2027, subject to certain trackage and haulage rights granted to other concessionaires), which is renewable under certain conditions for an additional period of up to 50 years (the “Concession”). The Concession is to provide freight transportation services over north-east rail lines which are a primary commercial corridor of the Mexican railroad system. KCSM has the right to use, but does not own, all track and buildings that are necessary for the rail lines’ operation. KCSM is required to pay the Mexican government an annual concession duty equal to 1.25% of gross revenues during the Concession period. Employees and Labor Relations. KCSR participates in industry-wide multi-employer bargaining as a member of the National Carriers’ Conference Committee, as well as local bargaining for agreements that are limited to KCSR's property. Approximately 75% of KCSR employees are covered by collective bargaining agreements. KCSM Servicios union employees are covered by one labor agreement, which was signed on April 16, 2012, between KCSM Servicios and the Sindicato de Trabajadores Ferrocarrileros de la República Mexicana (“Mexican Railroad Union”), for an indefinite period of time, for the purpose of regulating the relationship between the parties. Approximately 80% of KCSM Servicios employees are covered by this labor agreement. Union labor negotiations have not historically resulted in any strike, boycott, or other disruption in the Company’s business operations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation. The accompanying consolidated financial statements are presented using the accrual basis of accounting and include the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. The equity method of accounting is used for all entities in which the Company or its subsidiaries have significant influence, but not a controlling interest. The Company evaluates less-than-majority-owned investments for consolidation pursuant to consolidation and variable interest entity guidance. The Company does not have any less-than-majority-owned investments requiring consolidation. Use of Estimates. The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to the recoverability and useful lives of assets, litigation provisions, and income taxes. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. Revenue Recognition. The Company recognizes freight revenue based upon the percentage of completion of a commodity movement as a shipment moves from origin to destination, with the related expense recognized as incurred. Other revenues, in general, are recognized when the product is shipped, as services are performed or contractual obligations are fulfilled. Foreign Exchange Gain (Loss). For financial reporting purposes, foreign subsidiaries maintain records in U.S. dollars, which is the functional currency. The dollar is the currency that reflects the economic substance of the underlying events and circumstances relevant to the entity. Monetary assets and liabilities denominated in pesos are remeasured into dollars using current exchange rates. The difference between the exchange rate on the date of the transaction and the exchange rate on the settlement date, or balance sheet date if not settled, is included in the income statement as foreign exchange gain or loss. Cash Equivalents. Short-term liquid investments with an initial maturity of three months or less are classified as cash and cash equivalents. Accounts Receivable, net. Accounts receivable are net of an allowance for uncollectible accounts as determined by historical experience and adjusted for economic uncertainties or known trends. Accounts are charged to the allowance when a customer enters bankruptcy, when an account has been transferred to a collection agent or submitted for legal action, or when a customer is significantly past due and all available means of collection have been exhausted. At December 31, 2016 and 2015 , the allowance for doubtful accounts was $5.3 million and $4.9 million , respectively. For the years ended December 31, 2016 , 2015 and 2014 , bad debt expense was $1.2 million , $1.0 million and $0.4 million , respectively. Materials and Supplies. Materials and supplies consisting of diesel fuel, items to be used in the maintenance of rolling stock and items to be used in the maintenance or construction of road property are valued at the lower of average cost or net realizable value. Derivative Instruments. Derivatives are measured at fair value and recorded on the balance sheet as either assets or liabilities. Changes in the fair value of derivatives are recorded either through current earnings or as other comprehensive income, depending on hedge designation. Gains and losses on derivative instruments classified as cash flow hedges are reported in other comprehensive income and are reclassified into earnings in the periods in which earnings are impacted by the variability of the cash flow of the hedged item. The ineffective portion of all hedge transactions is recognized in current period earnings. Property and Equipment (including Concession Assets). KCS capitalizes costs for self-constructed additions and improvements to property including direct labor and material, indirect overhead costs, and interest during long-term construction projects. For purchased assets, all costs necessary to make the asset ready for its intended use are capitalized. Expenditures that significantly increase asset values, productive capacity, efficiency, safety or extend useful lives are capitalized. Repair and maintenance costs are expensed as incurred. Property and equipment are carried at cost and are depreciated primarily on the group method of depreciation, which the Company believes closely approximates a straight line basis over the estimated useful lives of the assets measured in years. The group method of depreciation applies a composite rate to classes of similar assets rather than to individual assets. Composite depreciation rates are based upon the Company’s estimates of the expected average useful lives of assets as well as expected net salvage value at the end of their useful lives. In developing these estimates, the Company utilizes periodic depreciation studies performed by an independent engineering firm. Depreciation rate studies are performed at least every three years for equipment and at least every six years for road property (rail, ties, ballast, etc.). The Company completed depreciation studies for KCSM in 2016 and KCSR in 2015. The impacts of the studies were immaterial to the consolidated financial results for all periods. Under the group method of depreciation, the cost of railroad property and equipment (net of salvage or sales proceeds) retired or replaced in the normal course of business is charged to accumulated depreciation with no gain or loss recognized. Gains or losses on dispositions of land or non-group property and abnormal retirements of railroad property are recognized through income. A retirement of railroad property would be considered abnormal if the cause of the retirement is unusual in nature and its actual life is significantly shorter than what would be expected for that group based on the depreciation studies. An abnormal retirement could cause the Company to re-evaluate the estimated useful life of the impacted asset class. Costs incurred by the Company to acquire the concession rights and related assets, as well as subsequent improvements to the concession assets, are capitalized and amortized using the group method of depreciation over the lesser of the current expected Concession term, including probable renewal of an additional 50-year term, or the estimated useful lives of the assets and rights. Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value would be reduced to the estimated fair value. Future cash flow estimates for an impairment review would be based on the lowest level of identifiable cash flows, which are the Company’s U.S. and Mexican operations. During the years ended December 31, 2016 and 2015 , management did not identify any indicators of impairment. Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations. As of December 31, 2016 and 2015 , the goodwill balance was $13.2 million , which is included in other assets in the consolidated balance sheets. Goodwill is not amortized, but is reviewed at least annually, or more frequently as indicators warrant, for impairment. An impairment loss would be recognized to the extent that the carrying amount exceeds the assets’ fair values. The Company performed its annual impairment review for goodwill as of November 30, 2016 and 2015 , and concluded there was no impairment. Fair Value of Financial Instruments. Non-financial assets and liabilities are recognized at fair value on a nonrecurring basis. These assets and liabilities are measured at fair value on an ongoing basis but are subject to recognition in the financial statements only in certain circumstances. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into three levels based upon the observability of inputs. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value in its entirety requires judgment and considers factors specific to the asset or liability. Environmental Liabilities. The Company records liabilities for remediation and restoration costs related to past activities when the Company’s obligation is probable and the costs can be reasonably estimated. Costs of future expenditures for environmental remediation are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Costs of ongoing compliance activities related to current operations are expensed as incurred. Personal Injury Claims. Personal injury claims in excess of self-insurance levels are insured up to certain coverage amounts, depending on the type of claim and year of occurrence. The Company’s personal injury liability is based on actuarial studies performed on an undiscounted basis by an independent third party actuarial firm and reviewed by management. The liability is based on claims filed and an estimate of claims incurred but not yet reported. Adjustments to the liability are reflected as operating expenses in the period in which the adjustments are known. Legal fees related to personal injury claims are recorded in operating expense in the period incurred. Health and Welfare and Postemployment Benefits. The Company provides certain medical, life and other postemployment benefits to certain active employees and retirees. The Company uses actuaries to assist management in measuring the benefit obligation and cost based on the current plan provisions, employee demographics, and assumptions about financial and demographic factors affecting the probability, timing and amount of expected future benefit payments. Significant assumptions include the discount rate, rate of increase in compensation levels, and the health care cost trend rate. Actuarial gains and losses determined at the measurement date (December 31) are recognized immediately in the consolidated statements of income. Share-Based Compensation. The Company accounts for all share-based compensation in accordance with fair value recognition provisions. Under this method, compensation expense is measured at grant date fair value net of estimated forfeitures, and is recognized over the requisite service period in which the award is earned. The Company issues treasury stock to settle share-based awards. Income Taxes. Deferred income tax effects of transactions reported in different periods for financial reporting and income tax return purposes are recorded under the liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. In addition, the Company has not provided U.S. federal income taxes on the undistributed operating earnings of its foreign subsidiaries because the Company intends to indefinitely reinvest the earnings outside the U.S. or the earnings will be remitted in a tax-free transaction. The Company has recognized a deferred tax asset, net of a valuation allowance, for net operating loss and tax credit carryovers. The Company projects sufficient future taxable income to realize the deferred tax asset recorded less the valuation allowance. These projections take into consideration assumptions about future income, future capital expenditures and inflation rates. If assumptions or actual conditions change, the deferred tax asset, net of the valuation allowance, will be adjusted to properly reflect the expected tax benefit. Treasury Stock. The excess of repurchase price over par value of common shares held in treasury is allocated between additional paid-in capital and retained earnings. New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled in exchange for those goods or services. The new standard will become effective for the Company beginning with the first quarter 2018 and the Company plans to adopt the accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. The Company has substantially completed a review of the likely impacts of the application of the new standard to the existing portfolio of customer contracts entered into prior to the adoption of the new standard and will continue to review new contracts entered into prior to the adoption of the new standard. Based on this review, the adop tion of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The new standard will become effective for the Company beginning with the first quarter 2019 and requires a modified retrospective transition approach. The Company is currently evaluating the impacts the adoption of this accounting guidance will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The new standard will become effective for the Company beginning with the first quarter of 2017. Upon adoption of the new ASU, the Company plans to account for forfeitures as incurred. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows , which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The Company plans to early adopt the ASU beginning with the first quarter of 2017. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , that requires entities to recognize at the transaction date the income tax consequences of many intercompany asset transfers. The Company plans to early adopt the ASU beginning with the first quarter of 2017. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. |
Mexican Fuel Excise Tax Credit
Mexican Fuel Excise Tax Credit | 12 Months Ended |
Dec. 31, 2016 | |
Mexican Fuel Excise Tax Credit [Abstract] | |
Mexican Fuel Excise Tax Credit | Mexican Fuel Excise Tax Credit Fuel purchases made in Mexico are subject to an excise tax that is included in fuel expense. During the second quarter of 2016, the Company determined that it could utilize a credit available under changes in Mexican law for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in Mexico. As a result, the Company recognized a $62.8 million benefit during the year ended December 31, 2016. The Mexican fuel excise tax credit is realized through the offset of the current year Mexico income tax liability and income tax withholding payment obligations of KCSM with no carryforward to future periods. |
Flooding in the Southeastern Un
Flooding in the Southeastern United States Flooding in the Southeastern United States | 12 Months Ended |
Dec. 31, 2016 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Flooding in the Southeastern United States | Flooding in the Southeastern United States In March 2016, flooding in the southeastern United States caused damage to the Company’s track infrastructure and interruptions to the Company’s rail service. The Company filed a claim under its insurance program for property damage, incremental expenses and lost profits caused by this flooding event. In December 2016, the Company settled its insurance claim related to the flooding, and as a result, recognized a gain on insurance recovery of $3.0 million . This gain primarily represents the recovery of lost profits and the replacement value of property in excess of its carrying value, net of the self-insured retention. The gain on insurance recovery was recognized in Materials and other in the Consolidated Statements of Income. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share adjusts basic earnings per common share for the effects of potentially dilutive common shares, if the effect is not anti-dilutive. Potentially dilutive common shares include the dilutive effects of shares issuable under the Stock Option and Performance Award Plan and shares issuable upon the conversion of preferred stock to common stock. The following table reconciles the basic earnings per share computation to the diluted earnings per share computation (in millions, except share and per share amounts) : 2016 2015 2014 Net income available to common stockholders for purposes of computing basic and diluted earnings per share $ 477.9 $ 483.3 $ 502.4 Weighted-average number of shares outstanding (in thousands) : Basic shares 107,560 109,709 110,163 Effect of dilution 201 206 270 Diluted shares 107,761 109,915 110,433 Earnings per share: Basic earnings per share $ 4.44 $ 4.41 $ 4.56 Diluted earnings per share $ 4.43 $ 4.40 $ 4.55 Potentially dilutive shares excluded from the calculation ( in thousands ): 2016 2015 2014 Stock options excluded as their inclusion would be anti-dilutive 185 84 57 |
Property and Equipment (includi
Property and Equipment (including Concession Assets) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment (including Concession Assets) | Property and Equipment (including Concession Assets) The following tables list the major categories of property and equipment, including concession assets, as well as the weighted-average composite depreciation rate for each category ( in millions ): As of December 31, 2016 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2016 Land $ 219.2 $ — $ 219.2 N/A Concession land rights 141.2 (25.1 ) 116.1 1.0 % Rail and other track material 1,925.4 (445.0 ) 1,480.4 1.6-3.2% Ties 1,710.1 (423.8 ) 1,286.3 2.0-5.0% Grading 910.7 (153.9 ) 756.8 0.9 % Bridges and tunnels 739.4 (137.6 ) 601.8 1.1 % Ballast 748.3 (215.1 ) 533.2 2.5-4.7% Other (a) 1,152.1 (332.4 ) 819.7 3.0 % Total road property 7,186.0 (1,707.8 ) 5,478.2 2.8 % Locomotives 1,485.9 (356.9 ) 1,129.0 4.5 % Freight cars 887.7 (152.5 ) 735.2 3.5 % Other equipment 66.2 (23.6 ) 42.6 6.4 % Total equipment 2,439.8 (533.0 ) 1,906.8 4.2 % Technology and other 182.2 (126.2 ) 56.0 17.4 % Construction in progress 293.4 — 293.4 N/A Total property and equipment (including concession assets) $ 10,461.8 $ (2,392.1 ) $ 8,069.7 N/A _____________ (a) Other includes signals, buildings and other road assets. As of December 31, 2015 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2015 Land $ 218.1 $ — $ 218.1 N/A Concession land rights 141.2 (23.7 ) 117.5 1.0 % Rail and other track material 1,814.7 (394.6 ) 1,420.1 1.8-3.0% Ties 1,596.2 (357.1 ) 1,239.1 2.0-4.1% Grading 878.4 (144.9 ) 733.5 0.9 % Bridges and tunnels 703.4 (130.7 ) 572.7 1.1 % Ballast 696.6 (187.7 ) 508.9 2.5-4.1% Other (a) 1,095.0 (301.9 ) 793.1 3.0 % Total road property 6,784.3 (1,516.9 ) 5,267.4 2.7 % Locomotives 1,456.6 (302.7 ) 1,153.9 4.6 % Freight cars 809.6 (123.6 ) 686.0 3.9 % Other equipment 59.9 (20.7 ) 39.2 6.5 % Total equipment 2,326.1 (447.0 ) 1,879.1 4.4 % Technology and other 159.3 (120.7 ) 38.6 15.6 % Construction in progress 184.7 — 184.7 N/A Total property and equipment (including concession assets) $ 9,813.7 $ (2,108.3 ) $ 7,705.4 N/A _____________ (a) Other includes signals, buildings and other road assets. Concession assets, net of accumulated amortization of $610.7 million and $538.0 million , totaled $2,131.6 million and $2,070.5 million at December 31, 2016 and 2015 , respectively. The Company capitalized $0.5 million , $0.7 million , and $0.9 million of interest for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Depreciation and amortization of property and equipment (including concession assets) totaled $305.0 million , $284.6 million and $258.1 million , for 2016 , 2015 , and 2014 , respectively. |
Lease Termination Costs
Lease Termination Costs | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Lease Termination Costs | Lease Termination Costs During 2016, 2015 and 2014, the Company purchased $26.6 million , $144.2 million and $300.7 million , respectively, of equipment under existing operating leases and replacement equipment as certain operating leases expired. For the years ended December 31, 2015 and 2014, the Company recognized $9.6 million and $38.3 million of lease termination costs (included in operating expenses) due to the early termination of certain operating leases and the related purchase of the equipment. The Company did not incur lease termination costs during 2016. |
Other Balance Sheet Captions
Other Balance Sheet Captions | 12 Months Ended |
Dec. 31, 2016 | |
Other Balance Sheet Captions [Abstract] | |
Other Balance Sheet Captions | Other Balance Sheet Captions Other Current Assets. Other current assets included the following items at December 31 (in millions): 2016 2015 Refundable taxes $ 113.2 $ 71.6 Prepaid expenses 18.2 16.8 Other 2.4 2.2 Other current assets $ 133.8 $ 90.6 Accounts Payable and Accrued Liabilities. Accounts payable and accrued liabilities included the following items at December 31 (in millions): 2016 2015 Accounts payable $ 247.8 $ 176.7 Accrued wages and vacation 78.7 50.9 Derailments, personal injury and other claim provisions 39.2 40.5 Foreign currency derivative instruments 41.1 46.0 Dividends payable 35.2 35.9 Income and other taxes 36.0 18.8 Other 59.7 32.7 Accounts payable and accrued liabilities $ 537.7 $ 401.5 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in Note 2 — “Significant Accounting Policies”. As of December 31, 2016 , the Company’s derivative financial instruments are measured at fair value on a recurring basis and consist of foreign currency forward and option contracts, which are classified as Level 2 valuations. The Company determines the fair value of its derivative financial instrument positions based upon pricing models using inputs observed from actively quoted markets and also takes into consideration the contract terms as well as other inputs, including market currency exchange rates and in the case of option contracts, volatility, the risk-free interest rate and the time to expiration. The fair value of the foreign currency derivative instruments was a liability of $41.1 million and $46.0 million as of December 31, 2016 and 2015 , respectively. The Company’s short-term financial instruments include cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings. The carrying value of the short-term financial instruments approximates their fair value. The fair value of the Company’s debt is estimated using quoted market prices when available. When quoted market prices are not available, fair value is estimated based on current market interest rates for debt with similar maturities and credit quality. The fair value of the Company’s debt was $2,303.8 million and $2,287.5 million at December 31, 2016 and 2015 , respectively. The carrying value was $2,296.9 million and $2,321.1 million at December 31, 2016 and 2015 , respectively. If the Company’s debt were measured at fair value, the fair value measurements of the individual debt instruments would have been classified as either Level 1 or Level 2 in the fair value hierarchy. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into derivative transactions in certain situations based on management’s assessment of current market conditions and perceived risks. Management intends to respond to evolving business and market conditions and in doing so, may enter into such transactions as deemed appropriate. Credit Risk. As a result of the use of derivative instruments, the Company is exposed to counterparty credit risk. The Company manages this risk by limiting its counterparties to large financial institutions which meet the Company’s credit rating standards and have an established banking relationship with the Company. As of December 31, 2016 , the Company did not expect any losses as a result of default of its counterparties. Foreign Currency Derivative Instruments. The Company’s Mexican subsidiaries have net U.S. dollar-denominated monetary liabilities which, for Mexican income tax purposes, are subject to periodic revaluation based on changes in the value of the Mexican peso against the U.S. dollar. This revaluation creates fluctuations in the Company’s Mexican income tax expense and the amount of income taxes paid in Mexico. The Company hedges its exposure to this cash tax risk by entering into foreign currency forward contracts and foreign currency option contracts known as zero-cost collars. The foreign currency forward contracts involve the Company’s purchase of pesos at an agreed-upon weighted-average exchange rate to each U.S dollar. The zero-cost collars involve the Company’s purchase of a Mexican peso call option and a simultaneous sale of a Mexican peso put option, with equivalent U.S. dollar notional amounts for each option and no net cash premium paid by the Company. Below is a summary of the Company’s 2016 and 2015 foreign currency derivative contracts (amounts in millions, except Ps./USD) : Foreign currency forward contracts Contracts to purchase Ps./pay USD Offsetting contracts to sell Ps./receive USD Notional amount Notional amount Weighted-average exchange rate (in Ps./USD) Maturity date Notional amount Notional amount Weighted-average exchange rate (in Ps./USD) Maturity date Cash received/(paid) on settlement 2016 contracts outstanding at December 31, 2016 $ 340.0 Ps. 6,207.7 Ps. 18.3 1/17/2017 — — — — — 2016 contracts and 2016 offsetting contracts settled $ 60.0 Ps. 1,057.3 Ps. 17.6 4/29/2016 $ 60.7 Ps. 1,057.3 Ps. 17.4 4/29/2016 $ 0.7 2015 contracts and 2016 offsetting contracts settled $ 300.0 Ps. 4,480.4 Ps. 14.9 1/15/2016 $ 251.0 Ps. 4,480.4 Ps. 17.9 1/15/2016 $ (49.0 ) 2014 contracts and 2015 offsetting contracts settled $ 300.0 Ps. 4,364.7 Ps. 14.6 1/15/2015 $ 298.8 Ps. 4,364.7 Ps. 14.6 1/15/2015 $ (1.2 ) 2014 contracts and 2014 offsetting contracts settled $ 345.0 Ps. 4,642.5 Ps. 13.5 12/31/2014 $ 321.4 Ps. 4,642.5 Ps. 14.4 12/31/2014 $ (23.6 ) Foreign currency zero-cost collar contracts Notional amount Maturity date Cash received/(paid) on settlement 2015 contracts settled in 2016 $ 80.0 1/15/2016 $ (10.1 ) 2015 contracts settled in 2015 $ 50.0 9/28/2015 $ (4.3 ) The Company has not designated any of the foreign currency derivative contracts as hedging instruments for accounting purposes. The Company measures the foreign currency derivative contracts at fair value each period and recognizes any change in fair value in foreign exchange loss within the consolidated statements of income. The following table presents the fair value of derivative instruments included in the consolidated balance sheets at December 31 ( in millions ): Derivative Liabilities Balance Sheet Location 2016 2015 Derivatives not designated as hedging instruments: Foreign currency forward contracts Accounts payable and accrued liabilities $ 41.1 $ 39.8 Foreign currency zero-cost collar contracts Accounts payable and accrued liabilities — 6.2 Total derivative liabilities $ 41.1 $ 46.0 The following table presents the effects of derivative instruments on the consolidated statements of income for the years ended December 31 (in millions) : Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative Derivatives not designated as hedging instruments: 2016 2015 2014 Foreign currency forward contracts Foreign exchange loss $ (49.6 ) $ (36.7 ) $ (27.9 ) Foreign currency zero-cost collar contracts Foreign exchange loss (3.9 ) (10.5 ) — Total $ (53.5 ) $ (47.2 ) $ (27.9 ) |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Commercial Paper. The Company’s commercial paper program generally serves as the primary means of short-term funding. As of December 31, 2016 , KCS had $181.3 million of commercial paper outstanding, net of $0.1 million discount, at a weighted-average interest rate of 1.290% . As of December 31, 2015, KCS had $80.0 million of commercial paper outstanding at a weighted-average interest rate of 1.072% . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt at December 31 (in millions): 2016 2015 Principal Unamortized Discount and Debt Issuance Costs Net Principal Unamortized Discount and Debt Issuance Costs Net Revolving credit facilities, variable interest rate, due 2020 $ — $ — $ — $ — $ — $ — KCS Floating rate senior notes — — — 244.8 1.0 243.8 KCS 2.35% senior notes, due 2020 257.3 1.7 255.6 239.5 2.1 237.4 KCS 3.00% senior notes, due 2023 439.1 4.7 434.4 439.1 5.4 433.7 KCS 3.85% senior notes, due 2023 199.2 2.0 197.2 195.0 2.2 192.8 KCS 3.125% senior notes, due 2026 250.0 3.4 246.6 — — — KCS 4.30% senior notes, due 2043 448.7 9.6 439.1 437.6 9.8 427.8 KCS 4.95% senior notes, due 2045 499.2 8.0 491.2 476.7 7.9 468.8 KCSR senior notes 3.85% to 4.95%, due through 2045 2.9 — 2.9 40.7 0.6 40.1 KCSM senior notes 2.35% to 3.00%, due through 2023 28.5 0.2 28.3 51.5 0.3 51.2 RRIF loans 2.96% to 4.29%, due serially through 2037 81.4 0.5 80.9 84.9 0.6 84.3 Financing agreements 5.737% to 9.310%, due serially through 2023 102.5 0.4 102.1 119.9 0.5 119.4 Capital lease obligations, due serially to 2024 18.3 — 18.3 21.4 — 21.4 Other debt obligations 0.3 — 0.3 0.4 — 0.4 Total 2,327.4 30.5 2,296.9 2,351.5 30.4 2,321.1 Less: Debt due within one year 25.4 — 25.4 276.1 — 276.1 Long-term debt $ 2,302.0 $ 30.5 $ 2,271.5 $ 2,075.4 $ 30.4 $ 2,045.0 Revolving Credit Facility KCS with certain of its domestic subsidiaries named therein as guarantors, has an $800.0 million revolving credit facility (the “KCS Revolving Credit Facility”), with a $25.0 million standby letter of credit facility which, if utilized, constitutes usage under the revolving facility. The KCS Revolving Credit Facility serves as a backstop for KCS’s $800.0 million commercial paper program (the “KCS Commercial Paper Program”) which generally serves as the Company’s primary means of short-term funding. Borrowings under the KCS Revolving Credit Facility bear interest at floating rates. Depending on the Company’s credit rating, the margin that KCS pays above the London Interbank Offered Rate (“LIBOR”) at any point is between 1.125% and 2.0% . As of December 31, 2016, the margin is 1.5% based on KCS’s current credit rating. The KCS Revolving Credit Facility is guaranteed by KCSR, together with certain domestic subsidiaries named therein as guarantors (the “Subsidiary Guarantors”) and matures on December 9, 2020 . The KCS Revolving Credit Facility agreement contains representations, warranties, covenants (including financial covenants related to a leverage ratio and an interest coverage ratio) and events of default that are customary for credit agreements of this type. The occurrence of an event of default could result in the termination of the commitments and the acceleration of the repayment of any outstanding principal balance on the KCS Revolving Credit Facility and the KCS Commercial Paper Program. As of December 31, 2016 and 2015, KCS had no outstanding borrowings under the KCS Revolving Credit Facility. Debt Exchange During the first quarter of 2016, KCS entered into agreements with certain holders of KCSR and KCSM senior notes (collectively, the “Existing Notes”) to exchange Existing Notes for new securities issued by KCS. Each KCS note issued in exchange for an Existing Note has the same interest rate, interest payment dates and maturity date and substantially identical redemption provisions as the corresponding Existing Note. The following table summarizes the outstanding notes that were exchanged on March 29, 2016 ( in millions ): Issuer of Existing Notes Series of Existing Notes Principal Amount Outstanding Prior to Exchange Principal Amount of Notes Exchanged Principal Amount Outstanding Following Exchange KCSR 3.85% Senior Notes due 2023 $ 5.0 $ 4.2 $ 0.8 KCSR 4.30% Senior Notes due 2043 12.4 11.1 1.3 KCSR 4.95% Senior Notes due 2045 23.3 22.5 0.8 KCSM 2.35% Senior Notes due 2020 35.4 17.8 17.6 The Company has accounted for this transaction as a debt exchange as the exchanged debt instruments are not considered to be substantially different. The balance of the unamortized discount and issue costs from the Existing Notes is being amortized as an adjustment of interest expense over the term of the KCS notes. There was no gain or loss recognized as a result of the exchange. Senior Notes The Company’s senior notes include certain covenants which are customary for these types of debt instruments issued by borrowers with similar credit ratings. The KCS Notes are unsecured and unsubordinated obligations of the Company and are unconditionally guaranteed, jointly and severally, by KCSR and each current and future domestic subsidiary of KCS that guarantees the KCS Revolving Credit Facility or certain other debt of KCS or a Note Guarantor (collectively, the “Note Guarantors”). KCSR’s senior notes are unconditionally guaranteed, jointly and severally, on an unsecured senior basis, by KCS and each current and future domestic subsidiary of KCS that guarantees the KCS Revolving Credit Facility or certain other debt of KCS or a note guarantor. KCSR’s senior notes and the note guarantees rank pari passu in right of payment with KCSR’s, KCS’s and the Note Guarantors’ existing and future unsecured, unsubordinated obligations. KCSM’s senior notes are denominated in U.S. dollars; are unsecured, unsubordinated obligations; rank pari passu in right of payment with KCSM’s existing and future unsecured, unsubordinated obligations and are senior in right of payment to KCSM’s future subordinated indebtedness. Senior notes are redeemable at the issuer’s option, in whole or in part, at any time, by paying the greater of either 100% of the principal amount to be redeemed and a formula price based on interest rates prevailing at the time of redemption and time remaining to maturity. In addition, KCSM senior notes are redeemable, in whole but not in part, at KCSM’s option at any time at a redemption price of 100% of their principal amount, plus any accrued unpaid interest in the event of certain changes in the Mexican withholding tax rate. 3.125% Senior Notes. On May 16, 2016, KCS issued $250.0 million principal amount of senior unsecured notes due June 1, 2026 (the “3.125% Senior Notes”), which bear interest semiannually at a fixed annual rate of 3.125% . The 3.125% Senior Notes were issued at a discount to par value, resulting in a $1.3 million discount and a yield to maturity of 3.185% . The net proceeds from the offering were used to repay the outstanding commercial paper issued by KCS and for other general corporate purposes. Floating Rate Senior Notes. On October 28, 2016, $250.0 million principal amount of outstanding floating rate senior notes issued by KCS and KCSM (together, the “Floating Rate Senior Notes”) matured. The Floating Rate Senior Notes were redeemed by the Company upon maturity at a redemption price equal to 100% of the principal amount using available cash on hand and commercial paper. RRIF Loan Agreements The following loans were made under the Railroad Rehabilitation and Improvement Financing (“RRIF”) Program administered by the Federal Railroad Administration (“FRA”): KCSR RRIF Loan Agreement. On February 21, 2012, KCSR entered into an agreement with the FRA to borrow $54.6 million to be used to reimburse KCSR for a portion of the purchase price of thirty new locomotives (the “Locomotives”) acquired by KCSR in the fourth quarter of 2011. The loan bears interest at 2.96% annually and the principal balance amortizes quarterly with a final maturity of February 24, 2037 . The obligations under the financing agreement are secured by a first priority security interest in the Locomotives and certain related rights. In addition, the Company has agreed to guarantee repayment of the amounts due under the financing agreement and certain related agreements. The occurrence of an event of default could result in the acceleration of the repayment of any outstanding principal balance of the loan. Tex-Mex RRIF Loan Agreement. On June 28, 2005, Tex-Mex entered into an agreement with the FRA to borrow $50.0 million to be used for infrastructure improvements in order to accommodate growing freight rail traffic related to the NAFTA corridor. The loan bears interest at 4.29% annually and the principal balance amortizes quarterly with a final maturity of July 13, 2030 . The loan is guaranteed by Mexrail, which has issued a pledge agreement in favor of the lender equal to the gross revenues earned by Mexrail on per-car fees on traffic crossing the International Rail Bridge in Laredo, Texas. In addition, the Company has agreed to guarantee the scheduled principal payment installments due to the FRA from Tex-Mex under the loan agreement on a rolling five-year basis. Locomotive Financing Agreements During 2008 and 2011, KCSM entered into various financing agreements totaling $216.0 million to purchase locomotives. The agreements mature between December 2020 and September 2023 , are payable on a quarterly or semi-annual basis and contain annual interest rates ranging between 5.737% and 9.310% . KCSM has either granted the lender a security interest in the locomotives to secure the loan or has secured the loans by transferring legal ownership of the locomotives to irrevocable trusts established by KCSM to which the lender is the primary beneficiary and KCSM has a right of reversion upon satisfaction of the obligations of the loan agreements. KCSM’s locomotive financing agreements contain representations, warranties and covenants typical of such equipment loan agreements. Events of default in the financing agreements include, but are not limited to, certain payment defaults, certain bankruptcy and liquidation proceedings and the failure to perform any covenants or agreements contained in the financing agreements. Any event of default could trigger acceleration of KCSM’s payment obligations under the terms of the financing agreements. Debt Covenants Compliance The Company was in compliance with all of its debt covenants as of December 31, 2016 . Other Debt Provisions Certain loan agreements and debt instruments entered into or guaranteed by the Company and its subsidiaries provide for default in the event of a specified change in control of the Company or particular subsidiaries of the Company. Leases and Debt Maturities The Company leases transportation equipment, as well as office and other operating facilities, under various capital and operating leases. Rental expenses under operating leases were $61.0 million , $63.9 million , and $76.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Operating leases that contain scheduled rent adjustments are recognized on a straight-line basis over the term of the lease. Contingent rentals and sublease rentals were not significant. Minimum annual payments and present value thereof under existing capital leases, other debt maturities and minimum annual rental commitments under non-cancelable operating leases are as follows (in millions) : Long- Term Debt Capital Leases Total Debt Years Minimum Lease Payments Less Interest Net Present Value Operating Leases Total 2017 $ 22.0 $ 4.9 $ 1.5 $ 3.4 $ 25.4 $ 66.4 $ 91.8 2018 35.2 4.9 1.3 3.6 38.8 45.1 83.9 2019 15.5 3.7 1.0 2.7 18.2 39.9 58.1 2020 299.0 2.7 0.8 1.9 300.9 32.9 333.8 2021 8.8 2.7 0.6 2.1 10.9 21.7 32.6 Thereafter 1,928.6 5.1 0.5 4.6 1,933.2 94.5 2,027.7 Total $ 2,309.1 $ 24.0 $ 5.7 $ 18.3 $ 2,327.4 $ 300.5 $ 2,627.9 In the normal course of business, the Company enters into long-term contractual requirements for future goods and services needed for the operations of the business. Such commitments are not in excess of expected requirements and are not reasonably likely to result in performance penalties or payments that would have a material adverse effect on the Company’s liquidity. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Current income tax expense represents the amounts expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. Tax Expense. Income tax expense consists of the following components (in millions): 2016 2015 2014 Current: Federal $ 1.0 $ — $ (2.5 ) State and local 0.6 0.3 1.2 Foreign 76.4 51.2 70.0 Total current 78.0 51.5 68.7 Deferred: Federal 92.7 109.3 112.6 State and local 13.1 15.5 16.9 Foreign (1.0 ) 11.0 10.6 Total deferred 104.8 135.8 140.1 Total income tax expense $ 182.8 $ 187.3 $ 208.8 Income before income taxes consists of the following (in millions) : 2016 2015 2014 Income before income taxes: U.S. $ 279.9 $ 315.0 $ 326.5 Foreign 382.8 357.6 386.6 Total income before income taxes $ 662.7 $ 672.6 $ 713.1 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities follow at December 31 (in millions): 2016 2015 Assets: Tax credit and loss carryovers $ 70.7 $ 83.6 Reserves not currently deductible for tax 79.8 84.2 Other 31.6 35.7 Gross deferred tax assets before valuation allowance 182.1 203.5 Valuation allowance (1.7 ) (1.1 ) Net deferred tax assets 180.4 202.4 Liabilities: Property (1,389.0 ) (1,314.9 ) Investments (73.8 ) (71.3 ) Other (6.9 ) (7.3 ) Gross deferred tax liabilities (1,469.7 ) (1,393.5 ) Net deferred tax liability $ (1,289.3 ) $ (1,191.1 ) Tax Rates. Differences between the Company’s effective income tax rate and the U.S. federal statutory income tax rate of 35% follow (in millions): 2016 2015 2014 Dollars Percent Dollars Percent Dollars Percent Income tax expense using the statutory rate in effect $ 231.9 35.0 % $ 235.4 35.0 % $ 249.6 35.0 % Tax effect of: Difference between U.S. and foreign tax rate (17.4 ) (2.6 %) (17.8 ) (2.6 %) (23.0 ) (3.2 %) Foreign exchange (i) (45.0 ) (6.8 %) (40.5 ) (6.1 %) (24.2 ) (3.4 %) State and local income tax provision, net 8.1 1.2 % 10.3 1.5 % 11.7 1.6 % Other, net 5.2 0.8 % (0.1 ) — (5.3 ) (0.7 %) Income tax expense $ 182.8 27.6 % $ 187.3 27.8 % $ 208.8 29.3 % _____________________ (i) Mexican income taxes are paid in Mexican pesos, and as a result, the effective income tax rate reflects fluctuations in the value of the Mexican peso against the U.S. dollar. The foreign exchange impact on income taxes includes the gain or loss from the revaluation of the Company’s net U.S. dollar-denominated monetary liabilities into Mexican pesos which is included in Mexican taxable income under Mexican tax law. As a result, a strengthening of the Mexican peso against the U.S. dollar for the reporting period will generally increase the Mexican cash tax obligation and the effective income tax rate, and a weakening of the Mexican peso against the U.S. dollar for the reporting period will generally decrease the Mexican cash tax obligation and the effective tax rate. To hedge its exposure to this cash tax risk, the Company enters into foreign currency derivative contracts, which are measured at fair value each period and any change in fair value is recognized in foreign exchange loss within the consolidated statements of income. Refer to Note 10 Derivative Instruments for further information. Difference Attributable to Foreign Investments. At December 31, 2016 , the Company’s cumulative undistributed earnings of foreign subsidiaries was $2,181.8 million . The Company has not provided a deferred income tax liability on the undistributed earnings because the Company intends to indefinitely reinvest the earnings outside the U.S. or remit the earnings in tax-free transactions. If the foreign earnings were to be remitted in a taxable transaction, as of December 31, 2016 , the Company would incur gross federal income taxes of $763.6 million which would be partially offset by foreign tax credits. Tax Carryovers. The Company has U.S. state net operating losses which are carried forward from 5 to 20 years and are analyzed each year to determine the likelihood of realization. The state loss carryovers arise from both combined and separate tax filings from as early as 1999 and may expire as early as December 31, 2017 and as late as December 31, 2036. The state loss carryover at December 31, 2016 , was $435.1 million . In addition, the Company has $49.6 million of U.S. federal tax credit carryovers consisting primarily of $37.2 million of track maintenance credits which, if not used, will begin to expire in 2025. The Mexico federal loss carryovers at December 31, 2016 , were $7.5 million and, if not used, will begin to expire in 2025. A deferred tax asset was recorded in prior periods for the expected future tax benefit of these losses which will be carried forward to reduce only Mexican income tax payable in future years. A deferred tax asset is also recorded for an asset tax credit carryover in the amount of $4.3 million , which if not used, will begin to expire in 2017. The valuation allowance for deferred tax assets as of December 31, 2016 and 2015 , was $1.7 million and $1.1 million , respectively. The Company believes it is more likely than not that reversals of existing temporary differences that will produce future taxable income and the results of future operations will generate sufficient taxable income to realize the deferred tax assets, net of valuation allowances, related to loss carryovers and tax credits. Uncertain Tax Positions. The accounting guidance for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance requires the Company to recognize in the consolidated financial statements the benefit of a tax position only if the impact is more likely than not of being sustained on audit based on the technical merits of the position. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ( in millions ): 2016 2015 Balance at January 1, $ 1.7 $ 1.7 Additions based on tax positions related to the current year 1.3 — Additions for tax positions of prior years 2.5 — Reductions as a result of lapse of statute of limitations (1.7 ) — Balance at December 31, $ 3.8 $ 1.7 All of the unrecognized tax benefits would affect the effective income tax rate if recognized and is not expected to significantly change in the next twelve months. Interest and penalties related to uncertain tax positions are included in income before taxes on the consolidated statements of income. Accrued interest and penalties on unrecognized tax benefits and interest and penalty expense was immaterial to the consolidated financial statements for all periods presented. Tax Contingencies . Tax returns filed in the U.S. for periods after 2012 and in Mexico for periods after 2008 for KCSM and after 2010 for Mexico subsidiaries other than KCSM remain open to examination by the taxing authorities. The Servicio de Administración Tributaria (the “SAT”), the Mexican equivalent of the IRS, is currently examining the KCSM 2009, 2010 and 2011 Mexico tax returns and the 2013 Mexico tax return of KCSM Servicios. An SAT examination was completed during the second quarter of 2016 without adjustment for the 2012 Mexico tax return of KCSM Servicios. The Company litigated a Value Added Tax (“VAT”) audit assessment from the SAT for KCSM for the year ended December 31, 2005. In November 2016, KCSM was notified of a resolution by the Mexican tax court annulling this assessment. The SAT has appealed this resolution. The Company believes it is more likely than not that it will continue to prevail in this matter. However, an unexpected adverse resolution could have a material effect on the consolidated financial statements in a particular quarter or fiscal year. KCSM has not historically assessed VAT on international import transportation services provided to its customers based on a written ruling that KCSM obtained from the SAT in 2008 stating that such services were not subject to VAT (the “2008 Ruling”). Notwithstanding the 2008 Ruling, in December 2013, the SAT unofficially informed KCSM of an intended implementation of new criteria effective as of January 1, 2014, pursuant to which VAT would be assessed on all international import transportation services on the portion of the services provided within Mexico. Additionally, in November 2013, the SAT filed an action to nullify the 2008 Ruling, potentially exposing the application of the new criteria to open tax years. In February 2014, KCSM filed an action opposing the SAT’s nullification action. In December 2016, KCSM was notified of a resolution issued by the Mexican tax court confirming the 2008 Ruling. The SAT has appealed this resolution. The Company believes it is more likely than not that it will continue to prevail in this matter. As of the date of this filing, the SAT has not implemented any new criteria regarding this assessment of VAT on international import transportation services. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Information regarding the Company’s capital stock at December 31 follows: Shares Authorized Shares Issued 2016 2015 2016 2015 $25 par, 4% noncumulative, preferred stock 840,000 840,000 649,736 649,736 $1 par, preferred stock 2,000,000 2,000,000 — — $.01 par, common stock 400,000,000 400,000,000 123,352,185 123,352,185 Shares outstanding at December 31: 2016 2015 $25 par, 4% noncumulative, preferred stock 242,170 242,170 $.01 par, common stock 106,606,619 108,461,144 Share Repurchase Program. In May 2015, the Company announced a share repurchase program of up to $500.0 million , which expires on June 30, 2017 . Management's assessment of market conditions, available liquidity and other factors will determine the timing and volume of repurchases. During 2016, KCS repurchased 2,127,612 shares of common stock for $185.4 million at an average price of $87.15 per share under this program. Since inception of this program, KCS has repurchased 4,261,596 shares of common stock for $379.6 million at an average price of $89.07 per share. The excess of repurchase price over par value is allocated between additional paid-in capital and retained earnings. Treasury Stock. Shares of common stock in Treasury and related activity follow: 2016 2015 2014 Balance at beginning of year 14,891,041 12,959,855 13,122,956 Shares repurchased 2,127,612 2,133,984 — Shares issued to fund stock option exercises (15,264 ) (89,035 ) (46,100 ) Employee stock purchase plan shares issued (82,372 ) (52,736 ) (33,402 ) Nonvested shares issued (179,309 ) (62,936 ) (121,865 ) Nonvested shares forfeited 3,858 1,909 38,266 Balance at end of year 16,745,566 14,891,041 12,959,855 Change in Control Provisions. The Company and certain of its subsidiaries have entered into agreements with certain employees whereby, upon defined circumstances constituting a change in control of the Company or subsidiary, certain stock options become exercisable, certain benefit entitlements are automatically funded and such employees are entitled to specified cash payments upon termination of employment. The Company and certain of its subsidiaries have established trusts to provide for the funding of corporate commitments and entitlements of certain officers, directors, employees and others in the event of a specified change in control of the Company or subsidiary. Assets held in such trusts on December 31, 2016 and 2015 , were not material. Depending upon the circumstances at the time of any such change in control, the most significant of which would be the price paid for KCS common stock by a party seeking to control the Company, funding of the Company’s trusts could be substantial. Cash Dividends on Common Stock. The following table presents the amount of cash dividends declared per common share by the Company’s Board of Directors: 2016 2015 2014 Cash dividends declared per common share $ 1.32 $ 1.32 $ 1.12 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation On October 7, 2008, the Company’s stockholders approved the Kansas City Southern 2008 Stock Option and Performance Award Plan (the “2008 Plan”). The 2008 plan became effective on October 14, 2008 and replaced the Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award Plan. The 2008 Plan provides for the granting of up to 2.3 million shares of the Company’s common stock to eligible persons as defined in the 2008 Plan. The material terms and performance measures of the 2008 Plan were reapproved by the Company’s stockholders on May 2, 2013. On February 19, 2016 the Company granted 66,320 shares of nonvested stock (“the market-based award”) under the 2008 Plan. The market-based award contains a market condition that accelerates the vesting in three tranches if the twenty trading day volume-weighted average price of the Company’s common stock is above $84.14 , $91.79 or $99.44 . If the target share prices are met prior to December 31, 2017, the awards would vest on January 5, 2018. If the target prices are met after January 1, 2018 but prior to the fifth anniversary of the grant date, the awards would vest immediately. If the target prices are not met prior to the fifth anniversary of the grant date, the awards would forfeit. The target prices of $84.14 and $91.79 were met in the first and second quarters of 2016, respectively. The target price of $99.44 has not been met as of December 31, 2016. See further details in the nonvested stock summary table below. Stock Options. The exercise price for options granted under the 2008 Plan equals the closing market price of the Company’s stock on the date of grant. Options generally have a 3 year vesting period and are exercisable over the 10 year contractual term, except that options outstanding become immediately exercisable upon certain defined circumstances constituting a change in control of the Company. The grant date fair value, less estimated forfeitures, is recorded to expense on a straight-line basis over the vesting period. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average assumptions used were as follows: 2016 2015 2014 Expected dividend yield 1.60 % 0.94 % 1.19 % Expected volatility 32.29 % 37.11 % 45.57 % Risk-free interest rate 1.51 % 1.82 % 1.96 % Expected term (years) 6.0 6.0 6.0 Weighted-average grant date fair value of stock options granted $ 22.98 $ 41.49 $ 38.31 The expected dividend yield is calculated as the ratio of dividends paid per share of common stock to the stock price on the date of grant. The expected volatility is based on the historical volatility of the Company’s stock price over a term equal to the estimated life of the options. The risk-free interest rate is determined based on U.S. Treasury rates for instruments with terms approximating the expected life of the options granted, which represents the period of time the awards are expected to be outstanding and is based on the historical experience of similar awards. A summary of stock option activity is as follows: Number of Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value In years In millions Options outstanding at December 31, 2015 317,745 $ 73.94 Granted 113,127 82.71 Exercised (15,264 ) 57.48 Forfeited or expired (805 ) 106.52 Options outstanding at December 31, 2016 414,803 $ 76.87 6.4 $ 6.0 Vested and expected to vest at December 31, 2016 411,726 $ 76.77 6.4 $ 6.0 Exercisable at December 31, 2016 253,188 $ 67.60 5.0 $ 5.8 The aggregate intrinsic value in the table above, which is the amount by which the market value of the underlying stock exceeded the exercise price of outstanding options, represents the amount optionees would have realized if all in-the-money options had been exercised on the last business day of the period indicated. Compensation cost of $2.5 million , $2.0 million , and $1.7 million was recognized for stock option awards for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The total income tax benefit recognized in the consolidated statements of income was $0.9 million , $0.7 million , and $0.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Additional information regarding stock option exercises appears in the table below (in millions) : 2016 2015 2014 Aggregate grant-date fair value of stock options vested $ 1.8 $ 2.0 $ 2.3 Intrinsic value of stock options exercised 0.6 6.1 3.3 Cash received from option exercises 0.9 4.2 2.0 Tax benefit realized from options exercised during the annual period 0.2 2.3 1.3 As of December 31, 2016 , $1.1 million of unrecognized compensation cost relating to nonvested stock options is expected to be recognized over a weighted-average period of 1.0 year. At December 31, 2016 , there were 562,754 shares available for future grants under the 2008 Plan. Nonvested Stock. The 2008 Plan provides for the granting of nonvested stock awards to officers and other designated employees. The grant date fair value is based on the closing market price on the date of the grant. These awards are subject to forfeiture if employment terminates during the vesting period, which is generally 3 year or 5 year vesting for employees. Awards granted to the Company’s directors vest immediately on date of grant. The grant date fair value of nonvested shares, less estimated forfeitures, is recorded to compensation expense on a straight-line basis over the vesting period. The fair value and requisite service period of nonvested market-based awards granted on February 19, 2016 are estimated on the date of grant using the Monte Carlo simulation model. The assumptions used in the Monte Carlo simulation model are consistent with those used to value stock options and were as follows: Nonvested Stock Expected dividend yield 1.58 % Expected volatility 31.68 % Risk-free interest rate 0.53% - 1.89% Expected term (years) 1.9 Weighted-average grant date fair value $ 70.95 A summary of nonvested stock activity is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value In millions Nonvested stock at December 31, 2015 146,783 $ 99.61 Granted 174,703 80.92 Vested (79,618 ) 81.55 Forfeited (3,858 ) 123.02 Nonvested stock at December 31, 2016 238,010 $ 91.55 $ 20.2 The fair value (at vest date) of shares vested during the years ended December 31, 2016 , 2015 , and 2014 was $7.0 million , $6.4 million , and $8.5 million , respectively. The weighted-average grant date fair value of nonvested stock granted during 2016 , 2015 , and 2014 was $80.92 , $112.03 and $105.04 , respectively. Compensation cost for nonvested stock and market-based awards was $9.6 million , $5.1 million , and $4.0 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The total income tax benefit recognized in the consolidated statements of income was $3.5 million , $1.9 million , and $1.5 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. As of December 31, 2016 , $11.4 million of unrecognized compensation costs related to nonvested stock and market-based awards is expected to be recognized over a weighted-average period of 1.4 years. Performance Based Awards. The Company granted performance based nonvested stock awards during 2016 (the “2016 Awards”), 2015 (the “2015 Awards”) and 2014 (the “2014 Awards”). The awards granted provide a target number of shares that generally vest at the end of a 3 year requisite service period following the grant date. In addition to the service condition, the number of nonvested shares to be received depends on the attainment of defined Company-wide performance goals based on operating ratio (“OR”) and return on invested capital (“ROIC”) over a three -year performance period. The 2016 Awards are also subject to a revenue growth multiplier based on a three -year performance period calculated as defined in the award agreement that can range from 80% to 140% of the award earned based on the OR and ROIC achieved. The number of nonvested shares ultimately earned will range between zero to 200% of the target award. A summary of performance based nonvested stock activity at target is as follows: Target Number of Shares * Weighted-Average Grant Date Fair Value Nonvested stock, at December 31, 2015 141,604 $ 106.83 Granted 62,866 82.71 Vested (59,463 ) 105.03 Forfeited (608 ) 105.55 Nonvested stock, at December 31, 2016 144,399 $ 97.08 _____________________ * For the 2016 Awards and the 2015 Awards, participants in the aggregate can earn up to a maximum of 125,732 and 70,420 shares, respectively. For the 2014 Awards, the performance shares earned were 36,300 . The weighted-average grant date fair value of performance based nonvested stock granted during 2016 , 2015 and 2014 was $82.71 , $119.35 and $94.23 , respectively. The Company expenses the grant date fair value of the awards which are probable of being earned over the performance periods. Compensation cost on performance based awards was $5.7 million , $3.0 million and $3.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Total income tax benefit recognized in the consolidated statements of income for performance based awards was $2.1 million , $1.1 million and $1.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , $3.9 million of unrecognized compensation cost related to performance based awards is expected to be recognized over a weighted-average period of 1.0 year. The fair value (at vest date) of shares vested for the year ended December 31, 2016 was $5.0 million . Employee Stock Purchase Plan. The employee stock purchase plan (“ESPP”) provides substantially all U.S. full-time employees of the Company, certain subsidiaries and certain other affiliated entities, with the right to subscribe to an aggregate of 4.0 million shares of common stock of the Company. Prior to January 1, 2015, eligible employees could contribute, through payroll deductions, up to 5% of their regular base compensation during six -month purchase periods. The purchase price for shares was equal to 90% of the closing market price on either the exercise date or the offering date, whichever was lower. Effective January 1, 2015, the ESPP plan was amended to allow eligible employees to contribute up to 10% of their regular base compensation during six -month purchase periods at a purchase price equal to 85% of the closing market price on either the exercise date or the offering date, whichever is lower. At the end of each purchase period, the accumulated deductions are applied toward the purchase of the Company’s common stock. Both the discount in grant price and the share option purchase price are valued to derive the award’s fair value. The awards vest and the expense is recognized ratably over the offering period. The following table summarizes activity related to the various ESPP offerings: Exercise Date Received from Employees(i) In millions Date Issued Purchase Price Shares Issued July 2016 offering January 12, 2017 $ 72.12 36,108 $ 2.6 January 2016 offering July 11, 2016 62.66 41,895 2.6 July 2015 offering January 8, 2016 63.47 40,477 2.6 January 2015 offering July 6, 2015 77.52 35,097 2.7 July 2014 offering January 9, 2015 96.48 17,639 1.7 January 2014 offering July 10, 2014 96.76 17,026 1.6 _____________________ (i) Represents amounts received from employees through payroll deductions for share purchases under applicable offering. The fair value of the ESPP stock purchase rights is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average assumptions used for each of the respective periods were as follows: Year Ended December 31, 2016 2015 2014 Expected dividend yield 1.65 % 1.20 % 0.99 % Expected volatility 23.84 % 17.00 % 19.03 % Risk-free interest rate 0.46 % 0.10 % 0.10 % Expected term (years) 0.5 0.5 0.5 Weighted-average grant date fair value $ 17.29 $ 20.55 $ 17.13 Compensation expense of $1.4 million , $1.3 million , and $0.6 million was recognized for ESPP option awards for the years ended December 31, 2016 , 2015 , and 2014 , respectively. At December 31, 2016 , there were 3.6 million remaining shares available for future ESPP offerings under the plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Concession Duty. Under KCSM’s 50 -year Concession, which could expire in 2047 unless extended, KCSM pays annual concession duty expense of 1.25% of gross revenues. For the year ended December 31, 2016 , the concession duty expense, which is recorded within materials and other in operating expenses, was $14.9 million , compared to $15.4 million and $15.8 million for the same periods in 2015 and 2014 , respectively. Litigation. The Company is a party to various legal proceedings and administrative actions, all of which, except as set forth below, are of an ordinary, routine nature and incidental to its operations. Included in these proceedings are various tort claims brought by current and former employees for job-related injuries and by third parties for injuries related to railroad operations. KCS aggressively defends these matters and has established liability provisions, which management believes are adequate to cover expected costs. Although it is not possible to predict the outcome of any legal proceeding, in the opinion of management, other than those proceedings described in detail below, such proceedings and actions should not, individually, or in the aggregate, have a material adverse effect on the Company’s consolidated financial statements. Environmental Liabilities. The Company’s U.S. operations are subject to extensive federal, state and local environmental laws and regulations. The major U.S. environmental laws to which the Company is subject include, among others, the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA,” also known as the Superfund law), the Toxic Substances Control Act, the Federal Water Pollution Control Act, and the Hazardous Materials Transportation Act. CERCLA can impose joint and several liabilities for cleanup and investigation costs, without regard to fault or legality of the original conduct, on current and predecessor owners and operators of a site, as well as those who generate, or arrange for the disposal of, hazardous substances. The Company does not believe that compliance with the requirements imposed by the environmental legislation will impair its competitive capability or result in any material additional capital expenditures, operating or maintenance costs. The Company is, however, subject to environmental remediation costs as described in the following paragraphs. The Company’s Mexico operations are subject to Mexican federal and state laws and regulations relating to the protection of the environment through the establishment of standards for water discharge, water supply, emissions, noise pollution, hazardous substances and transportation and handling of hazardous and solid waste. The Mexican government may bring administrative and criminal proceedings, impose economic sanctions against companies that violate environmental laws, and temporarily or even permanently close non-complying facilities. The risk of incurring environmental liability is inherent in the railroad industry. As part of serving the petroleum and chemicals industry, the Company transports hazardous materials and has a professional team available to respond to and handle environmental issues that might occur in the transport of such materials. The Company performs ongoing reviews and evaluations of the various environmental programs and issues within the Company’s operations, and, as necessary, takes actions intended to limit the Company’s exposure to potential liability. Although these costs cannot be predicted with certainty, management believes that the ultimate outcome of identified matters will not have a material adverse effect on the Company’s consolidated financial statements. Personal Injury. The Company’s personal injury liability is based on semi-annual actuarial studies performed on an undiscounted basis by an independent third party actuarial firm and reviewed by management. This liability is based on personal injury claims filed and an estimate of claims incurred but not yet reported. Actual results may vary from estimates due to the number, type and severity of the injury, costs of medical treatments and uncertainties in litigation. Adjustments to the liability are reflected within operating expenses in the period in which changes to estimates are known. Personal injury claims in excess of self-insurance levels are insured up to certain coverage amounts, depending on the type of claim and year of occurrence. The personal injury liability as of December 31, 2016 is based on an updated actuarial study of personal injury claims through November 30, 2016 and review of December 2016 experience. For the years ended December 31, 2016 and 2015 , the Company recorded a $1.1 million and $6.1 million reduction, respectively, in personal injury liability, due to changes in estimates as a result of the Company’s claims development and settlement experience. The personal injury liability activity was as follows (in millions): 2016 2015 Balance at beginning of year $ 23.9 $ 29.3 Accruals 4.8 6.8 Changes in estimate (1.1 ) (6.1 ) Payments (3.8 ) (6.1 ) Balance at end of year $ 23.8 $ 23.9 Certain Disputes with Ferromex. KCSM and Ferrocarril Mexicano, S.A. de C.V. (“Ferromex”) use certain trackage rights, switching services and interline services provided by each other. KCSM and Ferromex had not agreed on the rates to be charged for trackage rights and switching services for periods beginning in 1998 through December 31, 2008, or for interline services for periods beginning in 1998 through February 8, 2010. Both KCSM and Ferromex had initiated administrative proceedings seeking a determination by the Mexican Secretaría de Comunicaciones y Transportes (“Secretary of Communications and Transportation” or “SCT”) of the rates that KCSM and Ferromex should pay each other. The SCT issued rulings in 2002 and 2008 setting the rates for the services and both KCSM and Ferromex had challenged these rulings based on different grounds. Additionally, KCSM and Ferromex had not settled amounts payable to each other for trackage rights and switching services for the year ended December 31, 2009. In the first quarter of 2016, KCSM and Ferromex executed a settlement agreement resolving amounts payable to each other for trackage rights and switching services for periods beginning in 1998 through December 31, 2009, and for interline services for periods beginning in 1998 through February 8, 2010. Under this settlement agreement, KCSM and Ferromex also agreed to terminate all related administrative proceedings. This settlement agreement did not have a significant effect on the consolidated financial statements. Tax Contingencies. Information regarding tax contingencies is included in Note 13 Income Taxes - Tax Contingencies. Contractual Agreements. In the normal course of business, the Company enters into various contractual agreements related to commercial arrangements and the use of other railroads’ or governmental entities’ infrastructure needed for the operations of the business. The Company is involved or may become involved in certain disputes involving transportation rates, product loss or damage, charges, and interpretations related to these agreements. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that, when resolved, these disputes will have a material effect on its consolidated financial statements. Credit Risk. The Company continually monitors risks related to economic changes and certain customer receivables concentrations. Significant changes in customer concentration or payment experience, deterioration of customer creditworthiness or weakening in economic trends could have a significant impact on the collectability of the Company’s receivables and its operating results. If the financial condition of the Company’s customers were to deteriorate and result in an impairment of their ability to make payments, additional allowances may be required. The Company has recorded provisions for uncollectability based on its best estimate as of December 31, 2016 . Panama Canal Railway Company (”PCRC”) Guarantees and Indemnities. At December 31, 2016 , the Company had issued and outstanding $5.5 million under a standby letter of credit to fulfill its obligation to fund fifty percent of the debt service reserve and liquidity reserve established by PCRC in connection with the issuance of the 7.0% Senior Secured Notes due November 1, 2026 (the “PCRC Notes”). Additionally, KCS has pledged its shares of PCRC as security for the PCRC Notes. Mexican Antitrust Review. Pursuant to the Mexican Regulatory Railroad Service Law as recently amended and the new Mexican Antitrust Law, on September 12, 2016, the Mexican government’s antitrust commission (Comisión Federal de Competencia Económica or “COFECE”), announced that it would review competitive conditions in the Mexican railroad industry, with respect to the existence of effective competition in the provision of interconnection services, trackage rights and switching rights used to render public freight transport in Mexico. The COFECE review includes the entire freight rail transportation market in Mexico and is not targeted to any single rail carrier. Notwithstanding that it is too early to determine what, if any, impact this review may have on Mexican rail operations in the future, if the COFECE determines there is a lack of effective competition, it could request the new Mexican Agencia Reguladora del Transporte Ferroviario (“Regulatory Agency of Rail Transportation” or “ARTF”), which oversees primary regulatory jurisdiction for the Company’s Mexican operations, to establish new limited mandatory trackage rights and/or rate regulation under the Amendments to the Mexican Regulatory Railroad Service Law. COFECE has extended its own preliminary report deadline to January 30, 2017. Surface Transportation Board. On July 27, 2016, the Surface Transportation Board issued a Notice of Proposed Rulemaking in Ex Parte 711 (Sub-No.1) Reciprocal Switching proposing rules related to reciprocal switching. Initial comments on the proposed rule were due by October 26, 2016, and replies to the initial comments were due by January 13, 2017. Until the rule has been finalized, KCS cannot determine what effect, if any, the rule will have on its business. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Fourth Third Second First (In millions, except per share amounts) 2016 Revenues $ 598.5 $ 604.5 $ 568.5 $ 562.7 Operating income 210.9 (i) 199.8 (i) 219.9 (i) 187.9 Net income 130.3 121.0 120.5 108.1 Net income attributable to Kansas City Southern and subsidiaries 129.6 120.6 120.1 107.8 Per share data: Basic earnings per common share $ 1.21 $ 1.12 $ 1.12 $ 1.00 Diluted earnings per common share 1.21 1.12 1.11 0.99 2015 Revenues $ 598.0 $ 631.9 $ 585.8 $ 603.1 Operating income 218.9 219.9 186.8 178.2 (ii) Net income 140.0 131.9 112.2 101.2 Net income attributable to Kansas City Southern and subsidiaries 139.3 131.6 111.8 100.8 Per share data: Basic earnings per common share $ 1.28 $ 1.20 $ 1.01 $ 0.91 Diluted earnings per common share 1.28 1.20 1.01 0.91 _____________________ (i) During the second, third and fourth quarters of 2016, the Company recognized $34.0 million , $15.6 million and $13.2 million , respectively, of credits available under changes in Mexican law for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in Mexico. (ii) During the first quarter of 2015, the Company recognized pre-tax lease termination costs of $9.6 million , due to the early termination of certain operating leases and the related purchase of equipment. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company strategically manages its rail operations as one reportable business segment over a single coordinated rail network that extends from the midwest and southeast portions of the United States south into Mexico and connects with other Class I railroads. Financial information reported at this level, such as revenues, operating income and cash flows from operations, is used by corporate management, including the Company’s chief operating decision-maker, in evaluating overall financial and operational performance, market strategies, as well as the decisions to allocate capital resources. The Company’s chief operating decision-maker is the chief executive officer. The following tables provide information by geographic area (in millions) : Years ended December 31, 2016 2015 2014 Revenues U.S. $ 1,210.8 $ 1,248.4 $ 1,372.2 Mexico 1,123.4 1,170.4 1,204.9 Total revenues $ 2,334.2 $ 2,418.8 $ 2,577.1 December 31, 2016 2015 Property and equipment (including concession assets), net U.S. $ 4,960.6 $ 4,642.6 Mexico 3,109.1 3,062.8 Total property and equipment (including concession assets), net $ 8,069.7 $ 7,705.4 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Foreign Currency Hedging As of December 31, 2016, the Company had outstanding foreign currency forward contracts with an aggregate notional amount of $340.0 million . During January 2017, the Company entered into offsetting foreign currency forward contracts with an aggregate notional amount of $287.0 million . These offsetting contracts matured on January 17, 2017 , and obligated the Company to sell a total of Ps.6,207.7 million at a weighted-average exchange rate of Ps.21.63 to each U.S. dollar. During January 2017, the Company entered into foreign currency option contracts known as zero-cost collars with an aggregate notional amount of $380.0 million to hedge its exposure to fluctuations in the Mexican cash tax obligation due to changes in the value of the Mexican peso against the U.S. dollar. The zero-cost collar contracts with an aggregate notional amount of $130.0 million and $250.0 million will mature on April 25, 2017 and January 16, 2018 , respectively. The zero-cost collar contracts have a weighted-average rate of Ps.21.61 to each U.S. dollar for the Mexican peso call options purchased by KCS and a weighted-average rate of Ps.23.87 to each U.S. dollar for the Mexican peso put options sold by KCS. The Company has not designated these foreign currency derivative instruments as hedging instruments for accounting purposes. The Company will measure the foreign currency derivative instruments at fair value each period and will recognize any change in fair value in foreign exchange gain (loss) within the consolidated statements of comprehensive income. Common Stock Dividend On January 26, 2017, the Company’s Board of Directors declared a cash dividend of $0.33 per share payable on April 5, 2017 , to common stockholders of record as of March 13, 2017 . The aggregate amount of the dividend declared was approximately $35.2 million . |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Consolidating Financial Information [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Pursuant to Securities and Exchange Commission (“SEC”) Regulation S-X Rule 3-10 “Financial statements of guarantors and issuers of guaranteed securities registered or being registered”, the Company is required to provide condensed consolidating financial information for issuers of certain of its senior notes that are guaranteed. As of December 31, 2016 , KCS had outstanding $2,093.5 million senior notes due through 2045 . The senior notes are unsecured obligations of KCS, and are also jointly and severally and fully and unconditionally guaranteed on an unsecured senior basis by KCSR and certain wholly-owned domestic subsidiaries of KCS. As a result, the Company is providing the following condensed consolidating financial information (in millions) . Condensed Consolidating Statements of Comprehensive Income - KCS Notes 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,101.3 $ 1,252.5 $ (19.6 ) $ 2,334.2 Operating expenses 4.7 794.7 734.0 (17.7 ) 1,515.7 Operating income (loss) (4.7 ) 306.6 518.5 (1.9 ) 818.5 Equity in net earnings of affiliates 468.5 7.1 12.7 (473.7 ) 14.6 Interest expense (81.9 ) (83.0 ) (63.1 ) 130.3 (97.7 ) Foreign exchange loss — — (72.0 ) — (72.0 ) Other income (expense), net 104.4 (0.2 ) 24.1 (129.0 ) (0.7 ) Income before income taxes 486.3 230.5 420.2 (474.3 ) 662.7 Income tax expense 7.1 87.4 89.2 (0.9 ) 182.8 Net income 479.2 143.1 331.0 (473.4 ) 479.9 Less: Net income attributable to noncontrolling interest — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 479.2 141.3 331.0 (473.4 ) 478.1 Other comprehensive loss (1.5 ) — (2.5 ) 2.5 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 477.7 $ 141.3 $ 328.5 $ (470.9 ) $ 476.6 Condensed Consolidating Statements of Comprehensive Income - KCS Notes—(Continued) 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,135.9 $ 1,302.3 $ (19.4 ) $ 2,418.8 Operating expenses 4.6 779.7 849.3 (18.6 ) 1,615.0 Operating income (loss) (4.6 ) 356.2 453.0 (0.8 ) 803.8 Equity in net earnings of affiliates 464.0 7.4 16.5 (469.6 ) 18.3 Interest expense (4.6 ) (84.9 ) (40.1 ) 47.7 (81.9 ) Debt retirement and exchange costs 0.1 (5.2 ) (2.5 ) — (7.6 ) Foreign exchange loss — — (56.6 ) — (56.6 ) Other income (expense), net 45.9 (3.1 ) 1.4 (47.6 ) (3.4 ) Income before income taxes 500.8 270.4 371.7 (470.3 ) 672.6 Income tax expense 16.5 98.3 72.5 — 187.3 Net income 484.3 172.1 299.2 (470.3 ) 485.3 Less: Net income attributable to noncontrolling interest — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 484.3 170.3 299.2 (470.3 ) 483.5 Other comprehensive loss (1.5 ) — (2.2 ) 2.2 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 482.8 $ 170.3 $ 297.0 $ (468.1 ) $ 482.0 Condensed Consolidating Statements of Comprehensive Income - KCS Notes—(Continued) 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,242.0 $ 1,353.7 $ (18.6 ) $ 2,577.1 Operating expenses 7.6 901.0 879.1 (19.7 ) 1,768.0 Operating income (loss) (7.6 ) 341.0 474.6 1.1 809.1 Equity in net earnings of affiliates 476.7 7.6 18.9 (482.1 ) 21.1 Interest expense (0.1 ) (83.3 ) (39.6 ) 50.2 (72.8 ) Debt retirement and exchange costs — (2.7 ) (3.9 ) — (6.6 ) Foreign exchange loss — — (35.5 ) — (35.5 ) Other income (expense), net 50.1 0.2 (1.2 ) (51.3 ) (2.2 ) Income before income taxes 519.1 262.8 413.3 (482.1 ) 713.1 Income tax expense 16.5 99.1 93.2 — 208.8 Net income 502.6 163.7 320.1 (482.1 ) 504.3 Less: Net income attributable to noncontrolling interest — 1.7 — — 1.7 Net income attributable to Kansas City Southern and subsidiaries 502.6 162.0 320.1 (482.1 ) 502.6 Other comprehensive income (loss) (1.2 ) 0.1 (1.8 ) 1.7 (1.2 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 501.4 $ 162.1 $ 318.3 $ (480.4 ) $ 501.4 Condensed Consolidating Balance Sheets - KCS Notes December 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 0.9 $ 275.4 $ 381.2 $ (9.5 ) $ 648.0 Investments — 3.9 29.0 — 32.9 Investments in consolidated subsidiaries 3,497.7 493.7 — (3,991.4 ) — Property and equipment (including concession assets), net — 4,203.6 3,868.8 (2.7 ) 8,069.7 Other assets 2,015.5 43.0 252.6 (2,244.2 ) 66.9 Total assets $ 5,514.1 $ 5,019.6 $ 4,531.6 $ (6,247.8 ) $ 8,817.5 Liabilities and equity: Current liabilities $ (501.3 ) $ 1,004.0 $ 252.6 $ (10.9 ) $ 744.4 Long-term debt 1,883.1 1,357.7 1,274.9 (2,244.2 ) 2,271.5 Deferred income taxes 26.9 1,075.3 188.0 (0.9 ) 1,289.3 Other liabilities 4.0 86.3 17.5 — 107.8 Stockholders’ equity 4,101.4 1,181.7 2,798.6 (3,991.8 ) 4,089.9 Noncontrolling interest — 314.6 — — 314.6 Total liabilities and equity $ 5,514.1 $ 5,019.6 $ 4,531.6 $ (6,247.8 ) $ 8,817.5 December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 242.8 $ 189.5 $ 359.5 $ (254.8 ) $ 537.0 Investments — 3.9 30.8 — 34.7 Investments in consolidated subsidiaries 3,108.4 479.6 — (3,588.0 ) — Property and equipment (including concession assets), net — 3,903.2 3,803.0 (0.8 ) 7,705.4 Other assets 1,791.1 40.6 19.3 (1,787.1 ) 63.9 Total assets $ 5,142.3 $ 4,616.8 $ 4,212.6 $ (5,630.7 ) $ 8,341.0 Liabilities and equity: Current liabilities $ (566.9 ) $ 1,066.6 $ 512.8 $ (254.9 ) $ 757.6 Long-term debt 1,759.8 1,260.0 812.3 (1,787.1 ) 2,045.0 Deferred income taxes 20.9 998.4 171.8 — 1,191.1 Other liabilities 3.8 94.4 24.4 — 122.6 Stockholders’ equity 3,924.7 887.0 2,691.3 (3,588.7 ) 3,914.3 Noncontrolling interest — 310.4 — — 310.4 Total liabilities and equity $ 5,142.3 $ 4,616.8 $ 4,212.6 $ (5,630.7 ) $ 8,341.0 Condensed Consolidating Statements of Cash Flows - KCS Notes 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 428.4 $ 236.0 $ 482.7 $ (233.8 ) $ 913.3 Investing activities: Capital expenditures — (373.1 ) (190.8 ) — (563.9 ) Purchase or replacement of equipment under operating leases — (26.6 ) — — (26.6 ) Property investments in MSLLC — — (33.1 ) — (33.1 ) Proceeds from repayment of loans to affiliates 9,067.7 — — (9,067.7 ) — Loans to affiliates (9,123.4 ) — — 9,123.4 — Contributions to consolidated affiliates (153.4 ) (6.5 ) — 159.9 — Other investing activities — (12.6 ) 6.1 1.9 (4.6 ) Net cash used (209.1 ) (418.8 ) (217.8 ) 217.5 (628.2 ) Financing activities: Proceeds from short-term borrowings 8,698.7 243.5 — (243.5 ) 8,698.7 Repayment of short-term borrowings (8,597.9 ) (243.5 ) — 243.5 (8,597.9 ) Proceeds from issuance of long-term debt 248.7 — — — 248.7 Repayment of long-term debt (244.8 ) (3.5 ) (28.1 ) — (276.4 ) Dividends paid (142.8 ) — (230.2 ) 230.2 (142.8 ) Shares repurchased (185.4 ) — — — (185.4 ) Proceeds from loans from affiliates — 8,879.9 — (8,879.9 ) — Repayment of loans from affiliates — (8,824.2 ) — 8,824.2 — Contributions from affiliates — 153.1 6.8 (159.9 ) — Other financing activities 4.2 (0.1 ) (1.8 ) 1.7 4.0 Net cash provided (used) (219.3 ) 205.2 (253.3 ) 16.3 (251.1 ) Cash and cash equivalents: Net increase — 22.4 11.6 — 34.0 At beginning of year 0.2 10.2 126.2 — 136.6 At end of year $ 0.2 $ 32.6 $ 137.8 $ — $ 170.6 Condensed Consolidating Statements of Cash Flows - KCS Notes—(Continued) 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 45.3 $ 356.6 $ 526.0 $ (18.6 ) $ 909.3 Investing activities: Capital expenditures — (382.8 ) (305.2 ) — (688.0 ) Purchase or replacement of equipment under operating leases — (82.8 ) (61.4 ) — (144.2 ) Property investments in MSLLC — — (17.4 ) — (17.4 ) Proceeds from repayment of loans to affiliates 293.9 — — (293.9 ) — Loans to affiliates (80.0 ) — — 80.0 — Other investing activities (0.8 ) (31.4 ) 6.5 2.3 (23.4 ) Net cash provided (used) 213.1 (497.0 ) (377.5 ) (211.6 ) (873.0 ) Financing activities: Proceeds from short-term borrowings 80.0 10,786.2 — — 10,866.2 Repayment of short-term borrowings — (10,937.3 ) (300.0 ) — (11,237.3 ) Proceeds from issuance of long-term debt — 663.7 40.0 (80.0 ) 623.7 Repayment of long-term debt — (88.4 ) (61.4 ) — (149.8 ) Dividends paid (140.1 ) — (17.8 ) 17.8 (140.1 ) Shares repurchased (194.2 ) — — — (194.2 ) Repayment of loans from affiliates — (293.9 ) — 293.9 — Other financing activities (4.1 ) (9.2 ) (1.4 ) (1.5 ) (16.2 ) Net cash provided (used) (258.4 ) 121.1 (340.6 ) 230.2 (247.7 ) Cash and cash equivalents: Net decrease — (19.3 ) (192.1 ) — (211.4 ) At beginning of year 0.2 29.5 318.3 — 348.0 At end of year $ 0.2 $ 10.2 $ 126.2 $ — $ 136.6 Condensed Consolidating Statements of Cash Flows - KCS Notes—(Continued) 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 345.3 $ 379.1 $ 495.9 $ (314.3 ) $ 906.0 Investing activities: Capital expenditures — (479.5 ) (190.2 ) 1.5 (668.2 ) Purchase or replacement of equipment under operating leases — (203.6 ) (98.5 ) — (302.1 ) Property investments in MSLLC — — (26.7 ) — (26.7 ) Proceeds from repayment of loans to affiliates 70.4 — — (70.4 ) — Contributions to consolidated affiliates (299.6 ) — — 299.6 — Other investing activities (1.0 ) 8.6 5.8 0.7 14.1 Net cash used (230.2 ) (674.5 ) (309.6 ) 231.4 (982.9 ) Financing activities: Proceeds from short-term borrowings — 15,068.8 300.0 — 15,368.8 Repayment of short-term borrowings — (14,920.2 ) — — (14,920.2 ) Proceeds from issuance of long-term debt — 175.0 — — 175.0 Repayment of long-term debt — (423.6 ) (84.4 ) — (508.0 ) Dividends paid (116.6 ) — (314.3 ) 314.3 (116.6 ) Repayment of loans from affiliates — (70.4 ) — 70.4 — Contributions from affiliates — 300.4 1.4 (301.8 ) — Other financing activities 1.3 (1.4 ) (3.5 ) — (3.6 ) Net cash provided (used) (115.3 ) 128.6 (100.8 ) 82.9 (4.6 ) Cash and cash equivalents: Net increase (decrease) (0.2 ) (166.8 ) 85.5 — (81.5 ) At beginning of year 0.4 196.3 232.8 — 429.5 At end of year $ 0.2 $ 29.5 $ 318.3 $ — $ 348.0 As of December 31, 2016 , KCSR had outstanding $2.9 million principal amount of senior notes due through 2045. The senior notes are unsecured obligations of KCSR, and are also jointly and severally and fully and unconditionally guaranteed on an unsecured senior basis by KCS and certain wholly-owned domestic subsidiaries. As a result, the Company is providing the following condensed consolidating financial information (in millions) . Condensed Consolidating Statements of Comprehensive Income - KCSR Notes 2016 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,077.3 $ 43.7 $ 1,252.5 $ (39.3 ) $ 2,334.2 Operating expenses 4.7 776.3 38.1 734.0 (37.4 ) 1,515.7 Operating income (loss) (4.7 ) 301.0 5.6 518.5 (1.9 ) 818.5 Equity in net earnings (losses) of affiliates 468.5 (0.2 ) 5.3 12.7 (471.7 ) 14.6 Interest expense (81.9 ) (83.0 ) — (63.1 ) 130.3 (97.7 ) Foreign exchange loss — — — (72.0 ) — (72.0 ) Other income (expense), net 104.4 (0.2 ) — 24.1 (129.0 ) (0.7 ) Income before income taxes 486.3 217.6 10.9 420.2 (472.3 ) 662.7 Income tax expense 7.1 84.3 3.1 89.2 (0.9 ) 182.8 Net income 479.2 133.3 7.8 331.0 (471.4 ) 479.9 Less: Net income attributable to noncontrolling interest — — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 479.2 133.3 6.0 331.0 (471.4 ) 478.1 Other comprehensive loss (1.5 ) — — (2.5 ) 2.5 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 477.7 $ 133.3 $ 6.0 $ 328.5 $ (468.9 ) $ 476.6 Condensed Consolidating Statements of Comprehensive Income - KCSR Notes—(Continued) 2015 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,112.5 $ 42.1 $ 1,302.3 $ (38.1 ) $ 2,418.8 Operating expenses 4.6 760.4 38.0 849.3 (37.3 ) 1,615.0 Operating income (loss) (4.6 ) 352.1 4.1 453.0 (0.8 ) 803.8 Equity in net earnings (losses) of affiliates 464.0 (1.4 ) 5.5 16.5 (466.3 ) 18.3 Interest expense (4.6 ) (84.8 ) (0.1 ) (40.1 ) 47.7 (81.9 ) Debt retirement and exchange costs 0.1 (5.2 ) — (2.5 ) — (7.6 ) Foreign exchange loss — — — (56.6 ) — (56.6 ) Other income (expense), net 45.9 (3.2 ) 0.1 1.4 (47.6 ) (3.4 ) Income before income taxes 500.8 257.5 9.6 371.7 (467.0 ) 672.6 Income tax expense 16.5 95.2 3.1 72.5 — 187.3 Net income 484.3 162.3 6.5 299.2 (467.0 ) 485.3 Less: Net income attributable to noncontrolling interest — — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 484.3 162.3 4.7 299.2 (467.0 ) 483.5 Other comprehensive loss (1.5 ) — — (2.2 ) 2.2 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 482.8 $ 162.3 $ 4.7 $ 297.0 $ (464.8 ) $ 482.0 Condensed Consolidating Statements of Comprehensive Income - KCSR Notes—(Continued) 2014 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,215.8 $ 48.7 $ 1,353.7 $ (41.1 ) $ 2,577.1 Operating expenses 7.6 881.6 41.8 879.1 (42.1 ) 1,768.0 Operating income (loss) (7.6 ) 334.2 6.9 474.6 1.0 809.1 Equity in net earnings (losses) of affiliates 476.7 (0.1 ) 5.5 18.9 (479.9 ) 21.1 Interest expense (0.1 ) (83.3 ) — (39.6 ) 50.2 (72.8 ) Debt retirement and exchange costs — (2.7 ) — (3.9 ) — (6.6 ) Foreign exchange loss — — — (35.5 ) — (35.5 ) Other income (expense), net 50.1 0.2 — (1.2 ) (51.3 ) (2.2 ) Income before income taxes 519.1 248.3 12.4 413.3 (480.0 ) 713.1 Income tax expense 16.5 94.7 4.4 93.2 — 208.8 Net income 502.6 153.6 8.0 320.1 (480.0 ) 504.3 Less: Net income attributable to noncontrolling interest — — 1.7 — — 1.7 Net income attributable to Kansas City Southern and subsidiaries 502.6 153.6 6.3 320.1 (480.0 ) 502.6 Other comprehensive income (loss) (1.2 ) 0.1 — (1.8 ) 1.7 (1.2 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 501.4 $ 153.7 $ 6.3 $ 318.3 $ (478.3 ) $ 501.4 Condensed Consolidating Balance Sheets - KCSR Notes December 31, 2016 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 0.9 $ 271.8 $ 4.6 $ 381.2 $ (10.5 ) $ 648.0 Investments — 3.9 — 29.0 — 32.9 Investments in consolidated subsidiaries 3,497.7 (9.8 ) 491.7 — (3,979.6 ) — Property and equipment (including concession assets), net — 4,024.5 179.1 3,868.8 (2.7 ) 8,069.7 Other assets 2,015.5 43.0 — 252.6 (2,244.2 ) 66.9 Total assets $ 5,514.1 $ 4,333.4 $ 675.4 $ 4,531.6 $ (6,237.0 ) $ 8,817.5 Liabilities and equity: Current liabilities $ (501.3 ) $ 913.2 $ 91.7 $ 252.6 $ (11.8 ) $ 744.4 Long-term debt 1,883.1 1,357.7 0.1 1,274.9 (2,244.3 ) 2,271.5 Deferred income taxes 26.9 937.7 137.6 188.0 (0.9 ) 1,289.3 Other liabilities 4.0 86.2 0.1 17.5 — 107.8 Stockholders’ equity 4,101.4 1,038.6 131.3 2,798.6 (3,980.0 ) 4,089.9 Noncontrolling interest — — 314.6 — — 314.6 Total liabilities and equity $ 5,514.1 $ 4,333.4 $ 675.4 $ 4,531.6 $ (6,237.0 ) $ 8,817.5 December 31, 2015 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 242.8 $ 182.7 $ 7.7 $ 359.5 $ (255.7 ) $ 537.0 Investments — 3.9 — 30.8 — 34.7 Investments in consolidated subsidiaries 3,108.4 (7.6 ) 477.6 — (3,578.4 ) — Property and equipment (including concession assets), net — 3,716.4 186.8 3,803.0 (0.8 ) 7,705.4 Other assets 1,791.1 40.5 — 19.3 (1,787.0 ) 63.9 Total assets $ 5,142.3 $ 3,935.9 $ 672.1 $ 4,212.6 $ (5,621.9 ) $ 8,341.0 Liabilities and equity: Current liabilities $ (566.9 ) $ 959.6 $ 107.8 $ 512.8 $ (255.7 ) $ 757.6 Long-term debt 1,759.8 1,259.9 0.1 812.3 (1,787.1 ) 2,045.0 Deferred income taxes 20.9 863.7 134.7 171.8 — 1,191.1 Other liabilities 3.8 94.2 0.2 24.4 — 122.6 Stockholders’ equity 3,924.7 758.5 118.9 2,691.3 (3,579.1 ) 3,914.3 Noncontrolling interest — — 310.4 — — 310.4 Total liabilities and equity $ 5,142.3 $ 3,935.9 $ 672.1 $ 4,212.6 $ (5,621.9 ) $ 8,341.0 Condensed Consolidating Statements of Cash Flows - KCSR Notes 2016 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 428.4 $ 235.4 $ 0.6 $ 482.7 $ (233.8 ) $ 913.3 Investing activities: Capital expenditures — (372.5 ) (0.6 ) (190.8 ) — (563.9 ) Purchase or replacement of equipment under operating leases — (26.6 ) — — — (26.6 ) Property investments in MSLLC — — — (33.1 ) — (33.1 ) Proceeds from repayment of loans to affiliates 9,067.7 — — — (9,067.7 ) — Loans to affiliates (9,123.4 ) — — — 9,123.4 — Contributions to consolidated affiliates (153.4 ) — (6.5 ) — 159.9 — Other investing activities — (12.6 ) — 6.1 1.9 (4.6 ) Net cash used (209.1 ) (411.7 ) (7.1 ) (217.8 ) 217.5 (628.2 ) Financing activities: Proceeds from short-term borrowings 8,698.7 243.5 — — (243.5 ) 8,698.7 Repayment of short-term borrowings (8,597.9 ) (243.5 ) — — 243.5 (8,597.9 ) Proceeds from issuance of long-term debt 248.7 — — — — 248.7 Repayment of long-term debt (244.8 ) (3.4 ) (0.1 ) (28.1 ) — (276.4 ) Dividends paid (142.8 ) — — (230.2 ) 230.2 (142.8 ) Shares repurchased (185.4 ) — — — — (185.4 ) Proceeds from loans from affiliates — 8,879.9 — — (8,879.9 ) — Repayment of loans from affiliates — (8,824.2 ) — — 8,824.2 — Contributions from affiliates — 146.6 6.5 6.8 (159.9 ) — Other financing activities 4.2 (0.1 ) — (1.8 ) 1.7 4.0 Net cash provided (used) (219.3 ) 198.8 6.4 (253.3 ) 16.3 (251.1 ) Cash and cash equivalents: Net increase (decrease) — 22.5 (0.1 ) 11.6 — 34.0 At beginning of year 0.2 10.1 0.1 126.2 — 136.6 At end of year $ 0.2 $ 32.6 $ — $ 137.8 $ — $ 170.6 Condensed Consolidating Statements of Cash Flows - KCSR Notes—(Continued) 2015 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 45.3 $ 355.6 $ 1.0 $ 526.0 $ (18.6 ) $ 909.3 Investing activities: Capital expenditures — (381.5 ) (1.3 ) (305.2 ) — (688.0 ) Purchase or replacement of equipment under operating leases — (82.8 ) — (61.4 ) — (144.2 ) Property investments in MSLLC — — — (17.4 ) — (17.4 ) Proceeds from repayment of loans to affiliates 293.9 — — — (293.9 ) — Loans to affiliates (80.0 ) — — — 80.0 — Other investing activities (0.8 ) (30.7 ) (0.7 ) 6.5 2.3 (23.4 ) Net cash provided (used) 213.1 (495.0 ) (2.0 ) (377.5 ) (211.6 ) (873.0 ) Financing activities: Proceeds from short-term borrowings 80.0 10,786.2 — — — 10,866.2 Repayment of short-term borrowings — (10,937.3 ) — (300.0 ) — (11,237.3 ) Proceeds from issuance of long-term debt — 663.7 — 40.0 (80.0 ) 623.7 Repayment of long-term debt — (88.3 ) (0.1 ) (61.4 ) — (149.8 ) Dividends paid (140.1 ) — — (17.8 ) 17.8 (140.1 ) Shares repurchased (194.2 ) — — — — (194.2 ) Repayment of loans from affiliates — (293.9 ) — — 293.9 — Other financing activities (4.1 ) (9.9 ) 0.7 (1.4 ) (1.5 ) (16.2 ) Net cash provided (used) (258.4 ) 120.5 0.6 (340.6 ) 230.2 (247.7 ) Cash and cash equivalents: Net decrease — (18.9 ) (0.4 ) (192.1 ) — (211.4 ) At beginning of year 0.2 29.0 0.5 318.3 — 348.0 At end of year $ 0.2 $ 10.1 $ 0.1 $ 126.2 $ — $ 136.6 Condensed Consolidating Statements of Cash Flows - KCSR Notes—(Continued) 2014 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 345.3 $ 377.0 $ 2.1 $ 495.9 $ (314.3 ) $ 906.0 Investing activities: Capital expenditures — (477.8 ) (1.7 ) (190.2 ) 1.5 (668.2 ) Purchase or replacement of equipment under operating leases — (203.6 ) — (98.5 ) — (302.1 ) Property investments in MSLLC — — — (26.7 ) — (26.7 ) Proceeds from repayment of loans to affiliates 70.4 — — — (70.4 ) — Contributions to consolidated affiliates (299.6 ) — — — 299.6 — Other investing activities (1.0 ) 9.7 (1.1 ) 5.8 0.7 14.1 Net cash used (230.2 ) (671.7 ) (2.8 ) (309.6 ) 231.4 (982.9 ) Financing activities: Proceeds from short-term borrowings — 15,068.8 — 300.0 — 15,368.8 Repayment of short-term borrowings — (14,920.2 ) — — — (14,920.2 ) Proceeds from issuance of long-term debt — 175.0 — — — 175.0 Repayment of long-term debt — (423.5 ) (0.1 ) (84.4 ) — (508.0 ) Dividends paid (116.6 ) — — (314.3 ) 314.3 (116.6 ) Repayment of loans from affiliates — (70.4 ) — — 70.4 — Contributions from affiliates — 299.3 1.1 1.4 (301.8 ) — Other financing activities 1.3 (1.4 ) — (3.5 ) — (3.6 ) Net cash provided (used) (115.3 ) 127.6 1.0 (100.8 ) 82.9 (4.6 ) Cash and cash equivalents: Net increase (decrease) (0.2 ) (167.1 ) 0.3 85.5 — (81.5 ) At beginning of year 0.4 196.1 0.2 232.8 — 429.5 At end of year $ 0.2 $ 29.0 $ 0.5 $ 318.3 $ — $ 348.0 |
Significant Accounting Polici30
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation Policy | Principles of Consolidation. The accompanying consolidated financial statements are presented using the accrual basis of accounting and include the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. The equity method of accounting is used for all entities in which the Company or its subsidiaries have significant influence, but not a controlling interest. The Company evaluates less-than-majority-owned investments for consolidation pursuant to consolidation and variable interest entity guidance. The Company does not have any less-than-majority-owned investments requiring consolidation. |
Use of Estimates Policy | Use of Estimates. The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to the recoverability and useful lives of assets, litigation provisions, and income taxes. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. |
Revenue Recognition Policy | Revenue Recognition. The Company recognizes freight revenue based upon the percentage of completion of a commodity movement as a shipment moves from origin to destination, with the related expense recognized as incurred. Other revenues, in general, are recognized when the product is shipped, as services are performed or contractual obligations are fulfilled. |
Foreign Exchange Gain (Loss) Policy | Foreign Exchange Gain (Loss). For financial reporting purposes, foreign subsidiaries maintain records in U.S. dollars, which is the functional currency. The dollar is the currency that reflects the economic substance of the underlying events and circumstances relevant to the entity. Monetary assets and liabilities denominated in pesos are remeasured into dollars using current exchange rates. The difference between the exchange rate on the date of the transaction and the exchange rate on the settlement date, or balance sheet date if not settled, is included in the income statement as foreign exchange gain or loss. |
Cash Equivalents Policy | Cash Equivalents. Short-term liquid investments with an initial maturity of three months or less are classified as cash and cash equivalents. |
Accounts Receivable, net Policy | Accounts Receivable, net. Accounts receivable are net of an allowance for uncollectible accounts as determined by historical experience and adjusted for economic uncertainties or known trends. Accounts are charged to the allowance when a customer enters bankruptcy, when an account has been transferred to a collection agent or submitted for legal action, or when a customer is significantly past due and all available means of collection have been exhausted. |
Materials and Supplies Policy | Materials and Supplies. Materials and supplies consisting of diesel fuel, items to be used in the maintenance of rolling stock and items to be used in the maintenance or construction of road property are valued at the lower of average cost or net realizable value. |
Derivative Instruments Policy | Derivative Instruments. Derivatives are measured at fair value and recorded on the balance sheet as either assets or liabilities. Changes in the fair value of derivatives are recorded either through current earnings or as other comprehensive income, depending on hedge designation. Gains and losses on derivative instruments classified as cash flow hedges are reported in other comprehensive income and are reclassified into earnings in the periods in which earnings are impacted by the variability of the cash flow of the hedged item. The ineffective portion of all hedge transactions is recognized in current period earnings. |
Property and Equipment (including Concession Assets) Policy | Property and Equipment (including Concession Assets). KCS capitalizes costs for self-constructed additions and improvements to property including direct labor and material, indirect overhead costs, and interest during long-term construction projects. For purchased assets, all costs necessary to make the asset ready for its intended use are capitalized. Expenditures that significantly increase asset values, productive capacity, efficiency, safety or extend useful lives are capitalized. Repair and maintenance costs are expensed as incurred. Property and equipment are carried at cost and are depreciated primarily on the group method of depreciation, which the Company believes closely approximates a straight line basis over the estimated useful lives of the assets measured in years. The group method of depreciation applies a composite rate to classes of similar assets rather than to individual assets. Composite depreciation rates are based upon the Company’s estimates of the expected average useful lives of assets as well as expected net salvage value at the end of their useful lives. In developing these estimates, the Company utilizes periodic depreciation studies performed by an independent engineering firm. Depreciation rate studies are performed at least every three years for equipment and at least every six years for road property (rail, ties, ballast, etc.). The Company completed depreciation studies for KCSM in 2016 and KCSR in 2015. The impacts of the studies were immaterial to the consolidated financial results for all periods. Under the group method of depreciation, the cost of railroad property and equipment (net of salvage or sales proceeds) retired or replaced in the normal course of business is charged to accumulated depreciation with no gain or loss recognized. Gains or losses on dispositions of land or non-group property and abnormal retirements of railroad property are recognized through income. A retirement of railroad property would be considered abnormal if the cause of the retirement is unusual in nature and its actual life is significantly shorter than what would be expected for that group based on the depreciation studies. An abnormal retirement could cause the Company to re-evaluate the estimated useful life of the impacted asset class. Costs incurred by the Company to acquire the concession rights and related assets, as well as subsequent improvements to the concession assets, are capitalized and amortized using the group method of depreciation over the lesser of the current expected Concession term, including probable renewal of an additional 50-year term, or the estimated useful lives of the assets and rights. Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value would be reduced to the estimated fair value. Future cash flow estimates for an impairment review would be based on the lowest level of identifiable cash flows, which are the Company’s U.S. and Mexican operations. |
Goodwill Policy | Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations. As of December 31, 2016 and 2015 , the goodwill balance was $13.2 million , which is included in other assets in the consolidated balance sheets. Goodwill is not amortized, but is reviewed at least annually, or more frequently as indicators warrant, for impairment. An impairment loss would be recognized to the extent that the carrying amount exceeds the assets’ fair values. |
Fair Value of Financial Instruments Policy | Fair Value of Financial Instruments. Non-financial assets and liabilities are recognized at fair value on a nonrecurring basis. These assets and liabilities are measured at fair value on an ongoing basis but are subject to recognition in the financial statements only in certain circumstances. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into three levels based upon the observability of inputs. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value in its entirety requires judgment and considers factors specific to the asset or liability. |
Environmental Liabilities Policy | Environmental Liabilities. The Company records liabilities for remediation and restoration costs related to past activities when the Company’s obligation is probable and the costs can be reasonably estimated. Costs of future expenditures for environmental remediation are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Costs of ongoing compliance activities related to current operations are expensed as incurred. |
Personal Injury Claims Policy | Personal Injury Claims. Personal injury claims in excess of self-insurance levels are insured up to certain coverage amounts, depending on the type of claim and year of occurrence. The Company’s personal injury liability is based on actuarial studies performed on an undiscounted basis by an independent third party actuarial firm and reviewed by management. The liability is based on claims filed and an estimate of claims incurred but not yet reported. Adjustments to the liability are reflected as operating expenses in the period in which the adjustments are known. Legal fees related to personal injury claims are recorded in operating expense in the period incurred. |
Health and Welfare and Postemployment Benefits Policy | Health and Welfare and Postemployment Benefits. The Company provides certain medical, life and other postemployment benefits to certain active employees and retirees. The Company uses actuaries to assist management in measuring the benefit obligation and cost based on the current plan provisions, employee demographics, and assumptions about financial and demographic factors affecting the probability, timing and amount of expected future benefit payments. Significant assumptions include the discount rate, rate of increase in compensation levels, and the health care cost trend rate. Actuarial gains and losses determined at the measurement date (December 31) are recognized immediately in the consolidated statements of income. |
Share-Based Compensation Policy | Share-Based Compensation. The Company accounts for all share-based compensation in accordance with fair value recognition provisions. Under this method, compensation expense is measured at grant date fair value net of estimated forfeitures, and is recognized over the requisite service period in which the award is earned. The Company issues treasury stock to settle share-based awards. |
Income Taxes Policy | Income Taxes. Deferred income tax effects of transactions reported in different periods for financial reporting and income tax return purposes are recorded under the liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. In addition, the Company has not provided U.S. federal income taxes on the undistributed operating earnings of its foreign subsidiaries because the Company intends to indefinitely reinvest the earnings outside the U.S. or the earnings will be remitted in a tax-free transaction. The Company has recognized a deferred tax asset, net of a valuation allowance, for net operating loss and tax credit carryovers. The Company projects sufficient future taxable income to realize the deferred tax asset recorded less the valuation allowance. These projections take into consideration assumptions about future income, future capital expenditures and inflation rates. If assumptions or actual conditions change, the deferred tax asset, net of the valuation allowance, will be adjusted to properly reflect the expected tax benefit. |
Treasury Stock Policy | Treasury Stock. The excess of repurchase price over par value of common shares held in treasury is allocated between additional paid-in capital and retained earnings. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled in exchange for those goods or services. The new standard will become effective for the Company beginning with the first quarter 2018 and the Company plans to adopt the accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. The Company has substantially completed a review of the likely impacts of the application of the new standard to the existing portfolio of customer contracts entered into prior to the adoption of the new standard and will continue to review new contracts entered into prior to the adoption of the new standard. Based on this review, the adop tion of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The new standard will become effective for the Company beginning with the first quarter 2019 and requires a modified retrospective transition approach. The Company is currently evaluating the impacts the adoption of this accounting guidance will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The new standard will become effective for the Company beginning with the first quarter of 2017. Upon adoption of the new ASU, the Company plans to account for forfeitures as incurred. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows , which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The Company plans to early adopt the ASU beginning with the first quarter of 2017. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , that requires entities to recognize at the transaction date the income tax consequences of many intercompany asset transfers. The Company plans to early adopt the ASU beginning with the first quarter of 2017. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic Earnings Per Share Computation to the Diluted Earnings Per Share Computation | The following table reconciles the basic earnings per share computation to the diluted earnings per share computation (in millions, except share and per share amounts) : 2016 2015 2014 Net income available to common stockholders for purposes of computing basic and diluted earnings per share $ 477.9 $ 483.3 $ 502.4 Weighted-average number of shares outstanding (in thousands) : Basic shares 107,560 109,709 110,163 Effect of dilution 201 206 270 Diluted shares 107,761 109,915 110,433 Earnings per share: Basic earnings per share $ 4.44 $ 4.41 $ 4.56 Diluted earnings per share $ 4.43 $ 4.40 $ 4.55 |
Schedule of Potentially Dilutive Shares Excluded from the Calculation | Potentially dilutive shares excluded from the calculation ( in thousands ): 2016 2015 2014 Stock options excluded as their inclusion would be anti-dilutive 185 84 57 |
Property and Equipment (inclu32
Property and Equipment (including Concession Assets) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment by Type | The following tables list the major categories of property and equipment, including concession assets, as well as the weighted-average composite depreciation rate for each category ( in millions ): As of December 31, 2016 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2016 Land $ 219.2 $ — $ 219.2 N/A Concession land rights 141.2 (25.1 ) 116.1 1.0 % Rail and other track material 1,925.4 (445.0 ) 1,480.4 1.6-3.2% Ties 1,710.1 (423.8 ) 1,286.3 2.0-5.0% Grading 910.7 (153.9 ) 756.8 0.9 % Bridges and tunnels 739.4 (137.6 ) 601.8 1.1 % Ballast 748.3 (215.1 ) 533.2 2.5-4.7% Other (a) 1,152.1 (332.4 ) 819.7 3.0 % Total road property 7,186.0 (1,707.8 ) 5,478.2 2.8 % Locomotives 1,485.9 (356.9 ) 1,129.0 4.5 % Freight cars 887.7 (152.5 ) 735.2 3.5 % Other equipment 66.2 (23.6 ) 42.6 6.4 % Total equipment 2,439.8 (533.0 ) 1,906.8 4.2 % Technology and other 182.2 (126.2 ) 56.0 17.4 % Construction in progress 293.4 — 293.4 N/A Total property and equipment (including concession assets) $ 10,461.8 $ (2,392.1 ) $ 8,069.7 N/A _____________ (a) Other includes signals, buildings and other road assets. As of December 31, 2015 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2015 Land $ 218.1 $ — $ 218.1 N/A Concession land rights 141.2 (23.7 ) 117.5 1.0 % Rail and other track material 1,814.7 (394.6 ) 1,420.1 1.8-3.0% Ties 1,596.2 (357.1 ) 1,239.1 2.0-4.1% Grading 878.4 (144.9 ) 733.5 0.9 % Bridges and tunnels 703.4 (130.7 ) 572.7 1.1 % Ballast 696.6 (187.7 ) 508.9 2.5-4.1% Other (a) 1,095.0 (301.9 ) 793.1 3.0 % Total road property 6,784.3 (1,516.9 ) 5,267.4 2.7 % Locomotives 1,456.6 (302.7 ) 1,153.9 4.6 % Freight cars 809.6 (123.6 ) 686.0 3.9 % Other equipment 59.9 (20.7 ) 39.2 6.5 % Total equipment 2,326.1 (447.0 ) 1,879.1 4.4 % Technology and other 159.3 (120.7 ) 38.6 15.6 % Construction in progress 184.7 — 184.7 N/A Total property and equipment (including concession assets) $ 9,813.7 $ (2,108.3 ) $ 7,705.4 N/A _____________ (a) Other includes signals, buildings and other road assets. |
Other Balance Sheet Captions (T
Other Balance Sheet Captions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Balance Sheet Captions [Abstract] | |
Schedule of Other Current Assets | Other current assets included the following items at December 31 (in millions): 2016 2015 Refundable taxes $ 113.2 $ 71.6 Prepaid expenses 18.2 16.8 Other 2.4 2.2 Other current assets $ 133.8 $ 90.6 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities included the following items at December 31 (in millions): 2016 2015 Accounts payable $ 247.8 $ 176.7 Accrued wages and vacation 78.7 50.9 Derailments, personal injury and other claim provisions 39.2 40.5 Foreign currency derivative instruments 41.1 46.0 Dividends payable 35.2 35.9 Income and other taxes 36.0 18.8 Other 59.7 32.7 Accounts payable and accrued liabilities $ 537.7 $ 401.5 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Below is a summary of the Company’s 2016 and 2015 foreign currency derivative contracts (amounts in millions, except Ps./USD) : Foreign currency forward contracts Contracts to purchase Ps./pay USD Offsetting contracts to sell Ps./receive USD Notional amount Notional amount Weighted-average exchange rate (in Ps./USD) Maturity date Notional amount Notional amount Weighted-average exchange rate (in Ps./USD) Maturity date Cash received/(paid) on settlement 2016 contracts outstanding at December 31, 2016 $ 340.0 Ps. 6,207.7 Ps. 18.3 1/17/2017 — — — — — 2016 contracts and 2016 offsetting contracts settled $ 60.0 Ps. 1,057.3 Ps. 17.6 4/29/2016 $ 60.7 Ps. 1,057.3 Ps. 17.4 4/29/2016 $ 0.7 2015 contracts and 2016 offsetting contracts settled $ 300.0 Ps. 4,480.4 Ps. 14.9 1/15/2016 $ 251.0 Ps. 4,480.4 Ps. 17.9 1/15/2016 $ (49.0 ) 2014 contracts and 2015 offsetting contracts settled $ 300.0 Ps. 4,364.7 Ps. 14.6 1/15/2015 $ 298.8 Ps. 4,364.7 Ps. 14.6 1/15/2015 $ (1.2 ) 2014 contracts and 2014 offsetting contracts settled $ 345.0 Ps. 4,642.5 Ps. 13.5 12/31/2014 $ 321.4 Ps. 4,642.5 Ps. 14.4 12/31/2014 $ (23.6 ) Foreign currency zero-cost collar contracts Notional amount Maturity date Cash received/(paid) on settlement 2015 contracts settled in 2016 $ 80.0 1/15/2016 $ (10.1 ) 2015 contracts settled in 2015 $ 50.0 9/28/2015 $ (4.3 ) |
Schedule of Derivative Instruments in Consolidated Balance Sheets, Fair Value | The following table presents the fair value of derivative instruments included in the consolidated balance sheets at December 31 ( in millions ): Derivative Liabilities Balance Sheet Location 2016 2015 Derivatives not designated as hedging instruments: Foreign currency forward contracts Accounts payable and accrued liabilities $ 41.1 $ 39.8 Foreign currency zero-cost collar contracts Accounts payable and accrued liabilities — 6.2 Total derivative liabilities $ 41.1 $ 46.0 |
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income | The following table presents the effects of derivative instruments on the consolidated statements of income for the years ended December 31 (in millions) : Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative Derivatives not designated as hedging instruments: 2016 2015 2014 Foreign currency forward contracts Foreign exchange loss $ (49.6 ) $ (36.7 ) $ (27.9 ) Foreign currency zero-cost collar contracts Foreign exchange loss (3.9 ) (10.5 ) — Total $ (53.5 ) $ (47.2 ) $ (27.9 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt at December 31 (in millions): 2016 2015 Principal Unamortized Discount and Debt Issuance Costs Net Principal Unamortized Discount and Debt Issuance Costs Net Revolving credit facilities, variable interest rate, due 2020 $ — $ — $ — $ — $ — $ — KCS Floating rate senior notes — — — 244.8 1.0 243.8 KCS 2.35% senior notes, due 2020 257.3 1.7 255.6 239.5 2.1 237.4 KCS 3.00% senior notes, due 2023 439.1 4.7 434.4 439.1 5.4 433.7 KCS 3.85% senior notes, due 2023 199.2 2.0 197.2 195.0 2.2 192.8 KCS 3.125% senior notes, due 2026 250.0 3.4 246.6 — — — KCS 4.30% senior notes, due 2043 448.7 9.6 439.1 437.6 9.8 427.8 KCS 4.95% senior notes, due 2045 499.2 8.0 491.2 476.7 7.9 468.8 KCSR senior notes 3.85% to 4.95%, due through 2045 2.9 — 2.9 40.7 0.6 40.1 KCSM senior notes 2.35% to 3.00%, due through 2023 28.5 0.2 28.3 51.5 0.3 51.2 RRIF loans 2.96% to 4.29%, due serially through 2037 81.4 0.5 80.9 84.9 0.6 84.3 Financing agreements 5.737% to 9.310%, due serially through 2023 102.5 0.4 102.1 119.9 0.5 119.4 Capital lease obligations, due serially to 2024 18.3 — 18.3 21.4 — 21.4 Other debt obligations 0.3 — 0.3 0.4 — 0.4 Total 2,327.4 30.5 2,296.9 2,351.5 30.4 2,321.1 Less: Debt due within one year 25.4 — 25.4 276.1 — 276.1 Long-term debt $ 2,302.0 $ 30.5 $ 2,271.5 $ 2,075.4 $ 30.4 $ 2,045.0 |
Schedule of Debt Exchanged | The following table summarizes the outstanding notes that were exchanged on March 29, 2016 ( in millions ): Issuer of Existing Notes Series of Existing Notes Principal Amount Outstanding Prior to Exchange Principal Amount of Notes Exchanged Principal Amount Outstanding Following Exchange KCSR 3.85% Senior Notes due 2023 $ 5.0 $ 4.2 $ 0.8 KCSR 4.30% Senior Notes due 2043 12.4 11.1 1.3 KCSR 4.95% Senior Notes due 2045 23.3 22.5 0.8 KCSM 2.35% Senior Notes due 2020 35.4 17.8 17.6 |
Schedule Of Future Minimum Payments For Long-Term Debt, Capital And Operating Leases | Minimum annual payments and present value thereof under existing capital leases, other debt maturities and minimum annual rental commitments under non-cancelable operating leases are as follows (in millions) : Long- Term Debt Capital Leases Total Debt Years Minimum Lease Payments Less Interest Net Present Value Operating Leases Total 2017 $ 22.0 $ 4.9 $ 1.5 $ 3.4 $ 25.4 $ 66.4 $ 91.8 2018 35.2 4.9 1.3 3.6 38.8 45.1 83.9 2019 15.5 3.7 1.0 2.7 18.2 39.9 58.1 2020 299.0 2.7 0.8 1.9 300.9 32.9 333.8 2021 8.8 2.7 0.6 2.1 10.9 21.7 32.6 Thereafter 1,928.6 5.1 0.5 4.6 1,933.2 94.5 2,027.7 Total $ 2,309.1 $ 24.0 $ 5.7 $ 18.3 $ 2,327.4 $ 300.5 $ 2,627.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Tax Expense. Income tax expense consists of the following components (in millions): 2016 2015 2014 Current: Federal $ 1.0 $ — $ (2.5 ) State and local 0.6 0.3 1.2 Foreign 76.4 51.2 70.0 Total current 78.0 51.5 68.7 Deferred: Federal 92.7 109.3 112.6 State and local 13.1 15.5 16.9 Foreign (1.0 ) 11.0 10.6 Total deferred 104.8 135.8 140.1 Total income tax expense $ 182.8 $ 187.3 $ 208.8 |
Schedule of Income before Income Taxes, Domestic and Foreign | Income before income taxes consists of the following (in millions) : 2016 2015 2014 Income before income taxes: U.S. $ 279.9 $ 315.0 $ 326.5 Foreign 382.8 357.6 386.6 Total income before income taxes $ 662.7 $ 672.6 $ 713.1 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities follow at December 31 (in millions): 2016 2015 Assets: Tax credit and loss carryovers $ 70.7 $ 83.6 Reserves not currently deductible for tax 79.8 84.2 Other 31.6 35.7 Gross deferred tax assets before valuation allowance 182.1 203.5 Valuation allowance (1.7 ) (1.1 ) Net deferred tax assets 180.4 202.4 Liabilities: Property (1,389.0 ) (1,314.9 ) Investments (73.8 ) (71.3 ) Other (6.9 ) (7.3 ) Gross deferred tax liabilities (1,469.7 ) (1,393.5 ) Net deferred tax liability $ (1,289.3 ) $ (1,191.1 ) |
Schedule of Effective Income Tax Rate Reconciliation | Tax Rates. Differences between the Company’s effective income tax rate and the U.S. federal statutory income tax rate of 35% follow (in millions): 2016 2015 2014 Dollars Percent Dollars Percent Dollars Percent Income tax expense using the statutory rate in effect $ 231.9 35.0 % $ 235.4 35.0 % $ 249.6 35.0 % Tax effect of: Difference between U.S. and foreign tax rate (17.4 ) (2.6 %) (17.8 ) (2.6 %) (23.0 ) (3.2 %) Foreign exchange (i) (45.0 ) (6.8 %) (40.5 ) (6.1 %) (24.2 ) (3.4 %) State and local income tax provision, net 8.1 1.2 % 10.3 1.5 % 11.7 1.6 % Other, net 5.2 0.8 % (0.1 ) — (5.3 ) (0.7 %) Income tax expense $ 182.8 27.6 % $ 187.3 27.8 % $ 208.8 29.3 % _____________________ (i) Mexican income taxes are paid in Mexican pesos, and as a result, the effective income tax rate reflects fluctuations in the value of the Mexican peso against the U.S. dollar. The foreign exchange impact on income taxes includes the gain or loss from the revaluation of the Company’s net U.S. dollar-denominated monetary liabilities into Mexican pesos which is included in Mexican taxable income under Mexican tax law. As a result, a strengthening of the Mexican peso against the U.S. dollar for the reporting period will generally increase the Mexican cash tax obligation and the effective income tax rate, and a weakening of the Mexican peso against the U.S. dollar for the reporting period will generally decrease the Mexican cash tax obligation and the effective tax rate. To hedge its exposure to this cash tax risk, the Company enters into foreign currency derivative contracts, which are measured at fair value each period and any change in fair value is recognized in foreign exchange loss within the consolidated statements of income. Refer to Note 10 Derivative Instruments for further information. |
Schedule of Change in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ( in millions ): 2016 2015 Balance at January 1, $ 1.7 $ 1.7 Additions based on tax positions related to the current year 1.3 — Additions for tax positions of prior years 2.5 — Reductions as a result of lapse of statute of limitations (1.7 ) — Balance at December 31, $ 3.8 $ 1.7 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Capital Stock | Information regarding the Company’s capital stock at December 31 follows: Shares Authorized Shares Issued 2016 2015 2016 2015 $25 par, 4% noncumulative, preferred stock 840,000 840,000 649,736 649,736 $1 par, preferred stock 2,000,000 2,000,000 — — $.01 par, common stock 400,000,000 400,000,000 123,352,185 123,352,185 Shares outstanding at December 31: 2016 2015 $25 par, 4% noncumulative, preferred stock 242,170 242,170 $.01 par, common stock 106,606,619 108,461,144 |
Schedule of Treasury Stock | Shares of common stock in Treasury and related activity follow: 2016 2015 2014 Balance at beginning of year 14,891,041 12,959,855 13,122,956 Shares repurchased 2,127,612 2,133,984 — Shares issued to fund stock option exercises (15,264 ) (89,035 ) (46,100 ) Employee stock purchase plan shares issued (82,372 ) (52,736 ) (33,402 ) Nonvested shares issued (179,309 ) (62,936 ) (121,865 ) Nonvested shares forfeited 3,858 1,909 38,266 Balance at end of year 16,745,566 14,891,041 12,959,855 |
Schedule of Cash Dividends Declared per Common Share | The following table presents the amount of cash dividends declared per common share by the Company’s Board of Directors: 2016 2015 2014 Cash dividends declared per common share $ 1.32 $ 1.32 $ 1.12 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used were as follows: 2016 2015 2014 Expected dividend yield 1.60 % 0.94 % 1.19 % Expected volatility 32.29 % 37.11 % 45.57 % Risk-free interest rate 1.51 % 1.82 % 1.96 % Expected term (years) 6.0 6.0 6.0 Weighted-average grant date fair value of stock options granted $ 22.98 $ 41.49 $ 38.31 |
Schedule of Share-based Compensation, Stock Option Activity | A summary of stock option activity is as follows: Number of Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value In years In millions Options outstanding at December 31, 2015 317,745 $ 73.94 Granted 113,127 82.71 Exercised (15,264 ) 57.48 Forfeited or expired (805 ) 106.52 Options outstanding at December 31, 2016 414,803 $ 76.87 6.4 $ 6.0 Vested and expected to vest at December 31, 2016 411,726 $ 76.77 6.4 $ 6.0 Exercisable at December 31, 2016 253,188 $ 67.60 5.0 $ 5.8 |
Schedule of Stock Option Exercise Activity | Additional information regarding stock option exercises appears in the table below (in millions) : 2016 2015 2014 Aggregate grant-date fair value of stock options vested $ 1.8 $ 2.0 $ 2.3 Intrinsic value of stock options exercised 0.6 6.1 3.3 Cash received from option exercises 0.9 4.2 2.0 Tax benefit realized from options exercised during the annual period 0.2 2.3 1.3 |
Schedule Of Share-based Payment Award, Nonvested Stock, Valuation Assumptions | The assumptions used in the Monte Carlo simulation model are consistent with those used to value stock options and were as follows: Nonvested Stock Expected dividend yield 1.58 % Expected volatility 31.68 % Risk-free interest rate 0.53% - 1.89% Expected term (years) 1.9 Weighted-average grant date fair value $ 70.95 |
Schedule of Share-based Compensation, Nonvested Stock Activity | A summary of nonvested stock activity is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value In millions Nonvested stock at December 31, 2015 146,783 $ 99.61 Granted 174,703 80.92 Vested (79,618 ) 81.55 Forfeited (3,858 ) 123.02 Nonvested stock at December 31, 2016 238,010 $ 91.55 $ 20.2 |
Schedule of Share-based Compensation, Performance Based Award Activity | A summary of performance based nonvested stock activity at target is as follows: Target Number of Shares * Weighted-Average Grant Date Fair Value Nonvested stock, at December 31, 2015 141,604 $ 106.83 Granted 62,866 82.71 Vested (59,463 ) 105.03 Forfeited (608 ) 105.55 Nonvested stock, at December 31, 2016 144,399 $ 97.08 _____________________ * For the 2016 Awards and the 2015 Awards, participants in the aggregate can earn up to a maximum of 125,732 and 70,420 shares, respectively. For the 2014 Awards, the performance shares earned were 36,300 . |
Schedule of Employee Stock Purchase Plan Activity | The following table summarizes activity related to the various ESPP offerings: Exercise Date Received from Employees(i) In millions Date Issued Purchase Price Shares Issued July 2016 offering January 12, 2017 $ 72.12 36,108 $ 2.6 January 2016 offering July 11, 2016 62.66 41,895 2.6 July 2015 offering January 8, 2016 63.47 40,477 2.6 January 2015 offering July 6, 2015 77.52 35,097 2.7 July 2014 offering January 9, 2015 96.48 17,639 1.7 January 2014 offering July 10, 2014 96.76 17,026 1.6 _____________________ (i) Represents amounts received from employees through payroll deductions for share purchases under applicable offering. |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The weighted-average assumptions used for each of the respective periods were as follows: Year Ended December 31, 2016 2015 2014 Expected dividend yield 1.65 % 1.20 % 0.99 % Expected volatility 23.84 % 17.00 % 19.03 % Risk-free interest rate 0.46 % 0.10 % 0.10 % Expected term (years) 0.5 0.5 0.5 Weighted-average grant date fair value $ 17.29 $ 20.55 $ 17.13 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Personal Injury Liability Activity | The personal injury liability activity was as follows (in millions): 2016 2015 Balance at beginning of year $ 23.9 $ 29.3 Accruals 4.8 6.8 Changes in estimate (1.1 ) (6.1 ) Payments (3.8 ) (6.1 ) Balance at end of year $ 23.8 $ 23.9 |
Quarterly Financial Data (Una40
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Fourth Third Second First (In millions, except per share amounts) 2016 Revenues $ 598.5 $ 604.5 $ 568.5 $ 562.7 Operating income 210.9 (i) 199.8 (i) 219.9 (i) 187.9 Net income 130.3 121.0 120.5 108.1 Net income attributable to Kansas City Southern and subsidiaries 129.6 120.6 120.1 107.8 Per share data: Basic earnings per common share $ 1.21 $ 1.12 $ 1.12 $ 1.00 Diluted earnings per common share 1.21 1.12 1.11 0.99 2015 Revenues $ 598.0 $ 631.9 $ 585.8 $ 603.1 Operating income 218.9 219.9 186.8 178.2 (ii) Net income 140.0 131.9 112.2 101.2 Net income attributable to Kansas City Southern and subsidiaries 139.3 131.6 111.8 100.8 Per share data: Basic earnings per common share $ 1.28 $ 1.20 $ 1.01 $ 0.91 Diluted earnings per common share 1.28 1.20 1.01 0.91 _____________________ (i) During the second, third and fourth quarters of 2016, the Company recognized $34.0 million , $15.6 million and $13.2 million , respectively, of credits available under changes in Mexican law for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in Mexico. (ii) During the first quarter of 2015, the Company recognized pre-tax lease termination costs of $9.6 million , due to the early termination of certain operating leases and the related purchase of equipment. |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables provide information by geographic area (in millions) : Years ended December 31, 2016 2015 2014 Revenues U.S. $ 1,210.8 $ 1,248.4 $ 1,372.2 Mexico 1,123.4 1,170.4 1,204.9 Total revenues $ 2,334.2 $ 2,418.8 $ 2,577.1 December 31, 2016 2015 Property and equipment (including concession assets), net U.S. $ 4,960.6 $ 4,642.6 Mexico 3,109.1 3,062.8 Total property and equipment (including concession assets), net $ 8,069.7 $ 7,705.4 |
Condensed Consolidating Finan42
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Consolidating Financial Information KCS [Member] | |
Condensed Financial Statements [Line Items] | |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income - KCS Notes 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,101.3 $ 1,252.5 $ (19.6 ) $ 2,334.2 Operating expenses 4.7 794.7 734.0 (17.7 ) 1,515.7 Operating income (loss) (4.7 ) 306.6 518.5 (1.9 ) 818.5 Equity in net earnings of affiliates 468.5 7.1 12.7 (473.7 ) 14.6 Interest expense (81.9 ) (83.0 ) (63.1 ) 130.3 (97.7 ) Foreign exchange loss — — (72.0 ) — (72.0 ) Other income (expense), net 104.4 (0.2 ) 24.1 (129.0 ) (0.7 ) Income before income taxes 486.3 230.5 420.2 (474.3 ) 662.7 Income tax expense 7.1 87.4 89.2 (0.9 ) 182.8 Net income 479.2 143.1 331.0 (473.4 ) 479.9 Less: Net income attributable to noncontrolling interest — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 479.2 141.3 331.0 (473.4 ) 478.1 Other comprehensive loss (1.5 ) — (2.5 ) 2.5 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 477.7 $ 141.3 $ 328.5 $ (470.9 ) $ 476.6 Condensed Consolidating Statements of Comprehensive Income - KCS Notes—(Continued) 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,135.9 $ 1,302.3 $ (19.4 ) $ 2,418.8 Operating expenses 4.6 779.7 849.3 (18.6 ) 1,615.0 Operating income (loss) (4.6 ) 356.2 453.0 (0.8 ) 803.8 Equity in net earnings of affiliates 464.0 7.4 16.5 (469.6 ) 18.3 Interest expense (4.6 ) (84.9 ) (40.1 ) 47.7 (81.9 ) Debt retirement and exchange costs 0.1 (5.2 ) (2.5 ) — (7.6 ) Foreign exchange loss — — (56.6 ) — (56.6 ) Other income (expense), net 45.9 (3.1 ) 1.4 (47.6 ) (3.4 ) Income before income taxes 500.8 270.4 371.7 (470.3 ) 672.6 Income tax expense 16.5 98.3 72.5 — 187.3 Net income 484.3 172.1 299.2 (470.3 ) 485.3 Less: Net income attributable to noncontrolling interest — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 484.3 170.3 299.2 (470.3 ) 483.5 Other comprehensive loss (1.5 ) — (2.2 ) 2.2 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 482.8 $ 170.3 $ 297.0 $ (468.1 ) $ 482.0 Condensed Consolidating Statements of Comprehensive Income - KCS Notes—(Continued) 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,242.0 $ 1,353.7 $ (18.6 ) $ 2,577.1 Operating expenses 7.6 901.0 879.1 (19.7 ) 1,768.0 Operating income (loss) (7.6 ) 341.0 474.6 1.1 809.1 Equity in net earnings of affiliates 476.7 7.6 18.9 (482.1 ) 21.1 Interest expense (0.1 ) (83.3 ) (39.6 ) 50.2 (72.8 ) Debt retirement and exchange costs — (2.7 ) (3.9 ) — (6.6 ) Foreign exchange loss — — (35.5 ) — (35.5 ) Other income (expense), net 50.1 0.2 (1.2 ) (51.3 ) (2.2 ) Income before income taxes 519.1 262.8 413.3 (482.1 ) 713.1 Income tax expense 16.5 99.1 93.2 — 208.8 Net income 502.6 163.7 320.1 (482.1 ) 504.3 Less: Net income attributable to noncontrolling interest — 1.7 — — 1.7 Net income attributable to Kansas City Southern and subsidiaries 502.6 162.0 320.1 (482.1 ) 502.6 Other comprehensive income (loss) (1.2 ) 0.1 (1.8 ) 1.7 (1.2 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 501.4 $ 162.1 $ 318.3 $ (480.4 ) $ 501.4 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets - KCS Notes December 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 0.9 $ 275.4 $ 381.2 $ (9.5 ) $ 648.0 Investments — 3.9 29.0 — 32.9 Investments in consolidated subsidiaries 3,497.7 493.7 — (3,991.4 ) — Property and equipment (including concession assets), net — 4,203.6 3,868.8 (2.7 ) 8,069.7 Other assets 2,015.5 43.0 252.6 (2,244.2 ) 66.9 Total assets $ 5,514.1 $ 5,019.6 $ 4,531.6 $ (6,247.8 ) $ 8,817.5 Liabilities and equity: Current liabilities $ (501.3 ) $ 1,004.0 $ 252.6 $ (10.9 ) $ 744.4 Long-term debt 1,883.1 1,357.7 1,274.9 (2,244.2 ) 2,271.5 Deferred income taxes 26.9 1,075.3 188.0 (0.9 ) 1,289.3 Other liabilities 4.0 86.3 17.5 — 107.8 Stockholders’ equity 4,101.4 1,181.7 2,798.6 (3,991.8 ) 4,089.9 Noncontrolling interest — 314.6 — — 314.6 Total liabilities and equity $ 5,514.1 $ 5,019.6 $ 4,531.6 $ (6,247.8 ) $ 8,817.5 December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 242.8 $ 189.5 $ 359.5 $ (254.8 ) $ 537.0 Investments — 3.9 30.8 — 34.7 Investments in consolidated subsidiaries 3,108.4 479.6 — (3,588.0 ) — Property and equipment (including concession assets), net — 3,903.2 3,803.0 (0.8 ) 7,705.4 Other assets 1,791.1 40.6 19.3 (1,787.1 ) 63.9 Total assets $ 5,142.3 $ 4,616.8 $ 4,212.6 $ (5,630.7 ) $ 8,341.0 Liabilities and equity: Current liabilities $ (566.9 ) $ 1,066.6 $ 512.8 $ (254.9 ) $ 757.6 Long-term debt 1,759.8 1,260.0 812.3 (1,787.1 ) 2,045.0 Deferred income taxes 20.9 998.4 171.8 — 1,191.1 Other liabilities 3.8 94.4 24.4 — 122.6 Stockholders’ equity 3,924.7 887.0 2,691.3 (3,588.7 ) 3,914.3 Noncontrolling interest — 310.4 — — 310.4 Total liabilities and equity $ 5,142.3 $ 4,616.8 $ 4,212.6 $ (5,630.7 ) $ 8,341.0 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows - KCS Notes 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 428.4 $ 236.0 $ 482.7 $ (233.8 ) $ 913.3 Investing activities: Capital expenditures — (373.1 ) (190.8 ) — (563.9 ) Purchase or replacement of equipment under operating leases — (26.6 ) — — (26.6 ) Property investments in MSLLC — — (33.1 ) — (33.1 ) Proceeds from repayment of loans to affiliates 9,067.7 — — (9,067.7 ) — Loans to affiliates (9,123.4 ) — — 9,123.4 — Contributions to consolidated affiliates (153.4 ) (6.5 ) — 159.9 — Other investing activities — (12.6 ) 6.1 1.9 (4.6 ) Net cash used (209.1 ) (418.8 ) (217.8 ) 217.5 (628.2 ) Financing activities: Proceeds from short-term borrowings 8,698.7 243.5 — (243.5 ) 8,698.7 Repayment of short-term borrowings (8,597.9 ) (243.5 ) — 243.5 (8,597.9 ) Proceeds from issuance of long-term debt 248.7 — — — 248.7 Repayment of long-term debt (244.8 ) (3.5 ) (28.1 ) — (276.4 ) Dividends paid (142.8 ) — (230.2 ) 230.2 (142.8 ) Shares repurchased (185.4 ) — — — (185.4 ) Proceeds from loans from affiliates — 8,879.9 — (8,879.9 ) — Repayment of loans from affiliates — (8,824.2 ) — 8,824.2 — Contributions from affiliates — 153.1 6.8 (159.9 ) — Other financing activities 4.2 (0.1 ) (1.8 ) 1.7 4.0 Net cash provided (used) (219.3 ) 205.2 (253.3 ) 16.3 (251.1 ) Cash and cash equivalents: Net increase — 22.4 11.6 — 34.0 At beginning of year 0.2 10.2 126.2 — 136.6 At end of year $ 0.2 $ 32.6 $ 137.8 $ — $ 170.6 Condensed Consolidating Statements of Cash Flows - KCS Notes—(Continued) 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 45.3 $ 356.6 $ 526.0 $ (18.6 ) $ 909.3 Investing activities: Capital expenditures — (382.8 ) (305.2 ) — (688.0 ) Purchase or replacement of equipment under operating leases — (82.8 ) (61.4 ) — (144.2 ) Property investments in MSLLC — — (17.4 ) — (17.4 ) Proceeds from repayment of loans to affiliates 293.9 — — (293.9 ) — Loans to affiliates (80.0 ) — — 80.0 — Other investing activities (0.8 ) (31.4 ) 6.5 2.3 (23.4 ) Net cash provided (used) 213.1 (497.0 ) (377.5 ) (211.6 ) (873.0 ) Financing activities: Proceeds from short-term borrowings 80.0 10,786.2 — — 10,866.2 Repayment of short-term borrowings — (10,937.3 ) (300.0 ) — (11,237.3 ) Proceeds from issuance of long-term debt — 663.7 40.0 (80.0 ) 623.7 Repayment of long-term debt — (88.4 ) (61.4 ) — (149.8 ) Dividends paid (140.1 ) — (17.8 ) 17.8 (140.1 ) Shares repurchased (194.2 ) — — — (194.2 ) Repayment of loans from affiliates — (293.9 ) — 293.9 — Other financing activities (4.1 ) (9.2 ) (1.4 ) (1.5 ) (16.2 ) Net cash provided (used) (258.4 ) 121.1 (340.6 ) 230.2 (247.7 ) Cash and cash equivalents: Net decrease — (19.3 ) (192.1 ) — (211.4 ) At beginning of year 0.2 29.5 318.3 — 348.0 At end of year $ 0.2 $ 10.2 $ 126.2 $ — $ 136.6 Condensed Consolidating Statements of Cash Flows - KCS Notes—(Continued) 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 345.3 $ 379.1 $ 495.9 $ (314.3 ) $ 906.0 Investing activities: Capital expenditures — (479.5 ) (190.2 ) 1.5 (668.2 ) Purchase or replacement of equipment under operating leases — (203.6 ) (98.5 ) — (302.1 ) Property investments in MSLLC — — (26.7 ) — (26.7 ) Proceeds from repayment of loans to affiliates 70.4 — — (70.4 ) — Contributions to consolidated affiliates (299.6 ) — — 299.6 — Other investing activities (1.0 ) 8.6 5.8 0.7 14.1 Net cash used (230.2 ) (674.5 ) (309.6 ) 231.4 (982.9 ) Financing activities: Proceeds from short-term borrowings — 15,068.8 300.0 — 15,368.8 Repayment of short-term borrowings — (14,920.2 ) — — (14,920.2 ) Proceeds from issuance of long-term debt — 175.0 — — 175.0 Repayment of long-term debt — (423.6 ) (84.4 ) — (508.0 ) Dividends paid (116.6 ) — (314.3 ) 314.3 (116.6 ) Repayment of loans from affiliates — (70.4 ) — 70.4 — Contributions from affiliates — 300.4 1.4 (301.8 ) — Other financing activities 1.3 (1.4 ) (3.5 ) — (3.6 ) Net cash provided (used) (115.3 ) 128.6 (100.8 ) 82.9 (4.6 ) Cash and cash equivalents: Net increase (decrease) (0.2 ) (166.8 ) 85.5 — (81.5 ) At beginning of year 0.4 196.3 232.8 — 429.5 At end of year $ 0.2 $ 29.5 $ 318.3 $ — $ 348.0 |
Condensed Consolidating Financial Information KCSR [Member] | |
Condensed Financial Statements [Line Items] | |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income - KCSR Notes 2016 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,077.3 $ 43.7 $ 1,252.5 $ (39.3 ) $ 2,334.2 Operating expenses 4.7 776.3 38.1 734.0 (37.4 ) 1,515.7 Operating income (loss) (4.7 ) 301.0 5.6 518.5 (1.9 ) 818.5 Equity in net earnings (losses) of affiliates 468.5 (0.2 ) 5.3 12.7 (471.7 ) 14.6 Interest expense (81.9 ) (83.0 ) — (63.1 ) 130.3 (97.7 ) Foreign exchange loss — — — (72.0 ) — (72.0 ) Other income (expense), net 104.4 (0.2 ) — 24.1 (129.0 ) (0.7 ) Income before income taxes 486.3 217.6 10.9 420.2 (472.3 ) 662.7 Income tax expense 7.1 84.3 3.1 89.2 (0.9 ) 182.8 Net income 479.2 133.3 7.8 331.0 (471.4 ) 479.9 Less: Net income attributable to noncontrolling interest — — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 479.2 133.3 6.0 331.0 (471.4 ) 478.1 Other comprehensive loss (1.5 ) — — (2.5 ) 2.5 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 477.7 $ 133.3 $ 6.0 $ 328.5 $ (468.9 ) $ 476.6 Condensed Consolidating Statements of Comprehensive Income - KCSR Notes—(Continued) 2015 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,112.5 $ 42.1 $ 1,302.3 $ (38.1 ) $ 2,418.8 Operating expenses 4.6 760.4 38.0 849.3 (37.3 ) 1,615.0 Operating income (loss) (4.6 ) 352.1 4.1 453.0 (0.8 ) 803.8 Equity in net earnings (losses) of affiliates 464.0 (1.4 ) 5.5 16.5 (466.3 ) 18.3 Interest expense (4.6 ) (84.8 ) (0.1 ) (40.1 ) 47.7 (81.9 ) Debt retirement and exchange costs 0.1 (5.2 ) — (2.5 ) — (7.6 ) Foreign exchange loss — — — (56.6 ) — (56.6 ) Other income (expense), net 45.9 (3.2 ) 0.1 1.4 (47.6 ) (3.4 ) Income before income taxes 500.8 257.5 9.6 371.7 (467.0 ) 672.6 Income tax expense 16.5 95.2 3.1 72.5 — 187.3 Net income 484.3 162.3 6.5 299.2 (467.0 ) 485.3 Less: Net income attributable to noncontrolling interest — — 1.8 — — 1.8 Net income attributable to Kansas City Southern and subsidiaries 484.3 162.3 4.7 299.2 (467.0 ) 483.5 Other comprehensive loss (1.5 ) — — (2.2 ) 2.2 (1.5 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 482.8 $ 162.3 $ 4.7 $ 297.0 $ (464.8 ) $ 482.0 Condensed Consolidating Statements of Comprehensive Income - KCSR Notes—(Continued) 2014 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,215.8 $ 48.7 $ 1,353.7 $ (41.1 ) $ 2,577.1 Operating expenses 7.6 881.6 41.8 879.1 (42.1 ) 1,768.0 Operating income (loss) (7.6 ) 334.2 6.9 474.6 1.0 809.1 Equity in net earnings (losses) of affiliates 476.7 (0.1 ) 5.5 18.9 (479.9 ) 21.1 Interest expense (0.1 ) (83.3 ) — (39.6 ) 50.2 (72.8 ) Debt retirement and exchange costs — (2.7 ) — (3.9 ) — (6.6 ) Foreign exchange loss — — — (35.5 ) — (35.5 ) Other income (expense), net 50.1 0.2 — (1.2 ) (51.3 ) (2.2 ) Income before income taxes 519.1 248.3 12.4 413.3 (480.0 ) 713.1 Income tax expense 16.5 94.7 4.4 93.2 — 208.8 Net income 502.6 153.6 8.0 320.1 (480.0 ) 504.3 Less: Net income attributable to noncontrolling interest — — 1.7 — — 1.7 Net income attributable to Kansas City Southern and subsidiaries 502.6 153.6 6.3 320.1 (480.0 ) 502.6 Other comprehensive income (loss) (1.2 ) 0.1 — (1.8 ) 1.7 (1.2 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 501.4 $ 153.7 $ 6.3 $ 318.3 $ (478.3 ) $ 501.4 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets - KCSR Notes December 31, 2016 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 0.9 $ 271.8 $ 4.6 $ 381.2 $ (10.5 ) $ 648.0 Investments — 3.9 — 29.0 — 32.9 Investments in consolidated subsidiaries 3,497.7 (9.8 ) 491.7 — (3,979.6 ) — Property and equipment (including concession assets), net — 4,024.5 179.1 3,868.8 (2.7 ) 8,069.7 Other assets 2,015.5 43.0 — 252.6 (2,244.2 ) 66.9 Total assets $ 5,514.1 $ 4,333.4 $ 675.4 $ 4,531.6 $ (6,237.0 ) $ 8,817.5 Liabilities and equity: Current liabilities $ (501.3 ) $ 913.2 $ 91.7 $ 252.6 $ (11.8 ) $ 744.4 Long-term debt 1,883.1 1,357.7 0.1 1,274.9 (2,244.3 ) 2,271.5 Deferred income taxes 26.9 937.7 137.6 188.0 (0.9 ) 1,289.3 Other liabilities 4.0 86.2 0.1 17.5 — 107.8 Stockholders’ equity 4,101.4 1,038.6 131.3 2,798.6 (3,980.0 ) 4,089.9 Noncontrolling interest — — 314.6 — — 314.6 Total liabilities and equity $ 5,514.1 $ 4,333.4 $ 675.4 $ 4,531.6 $ (6,237.0 ) $ 8,817.5 December 31, 2015 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 242.8 $ 182.7 $ 7.7 $ 359.5 $ (255.7 ) $ 537.0 Investments — 3.9 — 30.8 — 34.7 Investments in consolidated subsidiaries 3,108.4 (7.6 ) 477.6 — (3,578.4 ) — Property and equipment (including concession assets), net — 3,716.4 186.8 3,803.0 (0.8 ) 7,705.4 Other assets 1,791.1 40.5 — 19.3 (1,787.0 ) 63.9 Total assets $ 5,142.3 $ 3,935.9 $ 672.1 $ 4,212.6 $ (5,621.9 ) $ 8,341.0 Liabilities and equity: Current liabilities $ (566.9 ) $ 959.6 $ 107.8 $ 512.8 $ (255.7 ) $ 757.6 Long-term debt 1,759.8 1,259.9 0.1 812.3 (1,787.1 ) 2,045.0 Deferred income taxes 20.9 863.7 134.7 171.8 — 1,191.1 Other liabilities 3.8 94.2 0.2 24.4 — 122.6 Stockholders’ equity 3,924.7 758.5 118.9 2,691.3 (3,579.1 ) 3,914.3 Noncontrolling interest — — 310.4 — — 310.4 Total liabilities and equity $ 5,142.3 $ 3,935.9 $ 672.1 $ 4,212.6 $ (5,621.9 ) $ 8,341.0 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows - KCSR Notes 2016 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 428.4 $ 235.4 $ 0.6 $ 482.7 $ (233.8 ) $ 913.3 Investing activities: Capital expenditures — (372.5 ) (0.6 ) (190.8 ) — (563.9 ) Purchase or replacement of equipment under operating leases — (26.6 ) — — — (26.6 ) Property investments in MSLLC — — — (33.1 ) — (33.1 ) Proceeds from repayment of loans to affiliates 9,067.7 — — — (9,067.7 ) — Loans to affiliates (9,123.4 ) — — — 9,123.4 — Contributions to consolidated affiliates (153.4 ) — (6.5 ) — 159.9 — Other investing activities — (12.6 ) — 6.1 1.9 (4.6 ) Net cash used (209.1 ) (411.7 ) (7.1 ) (217.8 ) 217.5 (628.2 ) Financing activities: Proceeds from short-term borrowings 8,698.7 243.5 — — (243.5 ) 8,698.7 Repayment of short-term borrowings (8,597.9 ) (243.5 ) — — 243.5 (8,597.9 ) Proceeds from issuance of long-term debt 248.7 — — — — 248.7 Repayment of long-term debt (244.8 ) (3.4 ) (0.1 ) (28.1 ) — (276.4 ) Dividends paid (142.8 ) — — (230.2 ) 230.2 (142.8 ) Shares repurchased (185.4 ) — — — — (185.4 ) Proceeds from loans from affiliates — 8,879.9 — — (8,879.9 ) — Repayment of loans from affiliates — (8,824.2 ) — — 8,824.2 — Contributions from affiliates — 146.6 6.5 6.8 (159.9 ) — Other financing activities 4.2 (0.1 ) — (1.8 ) 1.7 4.0 Net cash provided (used) (219.3 ) 198.8 6.4 (253.3 ) 16.3 (251.1 ) Cash and cash equivalents: Net increase (decrease) — 22.5 (0.1 ) 11.6 — 34.0 At beginning of year 0.2 10.1 0.1 126.2 — 136.6 At end of year $ 0.2 $ 32.6 $ — $ 137.8 $ — $ 170.6 Condensed Consolidating Statements of Cash Flows - KCSR Notes—(Continued) 2015 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 45.3 $ 355.6 $ 1.0 $ 526.0 $ (18.6 ) $ 909.3 Investing activities: Capital expenditures — (381.5 ) (1.3 ) (305.2 ) — (688.0 ) Purchase or replacement of equipment under operating leases — (82.8 ) — (61.4 ) — (144.2 ) Property investments in MSLLC — — — (17.4 ) — (17.4 ) Proceeds from repayment of loans to affiliates 293.9 — — — (293.9 ) — Loans to affiliates (80.0 ) — — — 80.0 — Other investing activities (0.8 ) (30.7 ) (0.7 ) 6.5 2.3 (23.4 ) Net cash provided (used) 213.1 (495.0 ) (2.0 ) (377.5 ) (211.6 ) (873.0 ) Financing activities: Proceeds from short-term borrowings 80.0 10,786.2 — — — 10,866.2 Repayment of short-term borrowings — (10,937.3 ) — (300.0 ) — (11,237.3 ) Proceeds from issuance of long-term debt — 663.7 — 40.0 (80.0 ) 623.7 Repayment of long-term debt — (88.3 ) (0.1 ) (61.4 ) — (149.8 ) Dividends paid (140.1 ) — — (17.8 ) 17.8 (140.1 ) Shares repurchased (194.2 ) — — — — (194.2 ) Repayment of loans from affiliates — (293.9 ) — — 293.9 — Other financing activities (4.1 ) (9.9 ) 0.7 (1.4 ) (1.5 ) (16.2 ) Net cash provided (used) (258.4 ) 120.5 0.6 (340.6 ) 230.2 (247.7 ) Cash and cash equivalents: Net decrease — (18.9 ) (0.4 ) (192.1 ) — (211.4 ) At beginning of year 0.2 29.0 0.5 318.3 — 348.0 At end of year $ 0.2 $ 10.1 $ 0.1 $ 126.2 $ — $ 136.6 Condensed Consolidating Statements of Cash Flows - KCSR Notes—(Continued) 2014 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 345.3 $ 377.0 $ 2.1 $ 495.9 $ (314.3 ) $ 906.0 Investing activities: Capital expenditures — (477.8 ) (1.7 ) (190.2 ) 1.5 (668.2 ) Purchase or replacement of equipment under operating leases — (203.6 ) — (98.5 ) — (302.1 ) Property investments in MSLLC — — — (26.7 ) — (26.7 ) Proceeds from repayment of loans to affiliates 70.4 — — — (70.4 ) — Contributions to consolidated affiliates (299.6 ) — — — 299.6 — Other investing activities (1.0 ) 9.7 (1.1 ) 5.8 0.7 14.1 Net cash used (230.2 ) (671.7 ) (2.8 ) (309.6 ) 231.4 (982.9 ) Financing activities: Proceeds from short-term borrowings — 15,068.8 — 300.0 — 15,368.8 Repayment of short-term borrowings — (14,920.2 ) — — — (14,920.2 ) Proceeds from issuance of long-term debt — 175.0 — — — 175.0 Repayment of long-term debt — (423.5 ) (0.1 ) (84.4 ) — (508.0 ) Dividends paid (116.6 ) — — (314.3 ) 314.3 (116.6 ) Repayment of loans from affiliates — (70.4 ) — — 70.4 — Contributions from affiliates — 299.3 1.1 1.4 (301.8 ) — Other financing activities 1.3 (1.4 ) — (3.5 ) — (3.6 ) Net cash provided (used) (115.3 ) 127.6 1.0 (100.8 ) 82.9 (4.6 ) Cash and cash equivalents: Net increase (decrease) (0.2 ) (167.1 ) 0.3 85.5 — (81.5 ) At beginning of year 0.4 196.1 0.2 232.8 — 429.5 At end of year $ 0.2 $ 29.0 $ 0.5 $ 318.3 $ — $ 348.0 |
Description of the Business (De
Description of the Business (Details) | 12 Months Ended |
Dec. 31, 2016 | |
MSLLC [Member] | |
Description Of The Business [Line Items] | |
Ownership percentage of MSLLC | 70.00% |
PCRC [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 50.00% |
FTVM [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 25.00% |
PTC-220 [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 14.00% |
KCSM [Member] | |
Description Of The Business [Line Items] | |
Percentage of gross revenue payable under railroad Concession to Mexican government | 1.25% |
KCSM [Member] | Maximum [Member] | |
Description Of The Business [Line Items] | |
Additional Concession renewal period | 50 years |
KCSR [Member] | Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | |
Description Of The Business [Line Items] | |
Percentage of employees covered by collective bargaining or labor agreements | 75.00% |
KCSM Servicios [Member] | Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | |
Description Of The Business [Line Items] | |
Percentage of employees covered by collective bargaining or labor agreements | 80.00% |
Significant Accounting Polici44
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 5.3 | $ 4.9 | |
Bad debt expense | 1.2 | 1 | $ 0.4 |
Goodwill | $ 13.2 | $ 13.2 |
Mexican Fuel Excise Tax Credit
Mexican Fuel Excise Tax Credit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mexican Fuel Excise Tax Credit [Line Items] | ||||||
Benefit recognized by the Company relating to a Mexican fuel excise tax credit | $ 13.2 | $ 15.6 | $ 34 | $ 62.8 | $ 0 | $ 0 |
Mexican Tax Authority [Member] | ||||||
Mexican Fuel Excise Tax Credit [Line Items] | ||||||
Benefit recognized by the Company relating to a Mexican fuel excise tax credit | $ 62.8 |
Flooding in the Southeastern 46
Flooding in the Southeastern United States Flooding in the Southeastern United States (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2016USD ($) | |
Natural Disasters and Other Casualty Events [Member] | Materials and Other Expense [Member] | |
Unusual or Infrequent Item, or Both [Line Items] | |
Gain on insurance recoveries related to flooding damage | $ 3 |
Earnings Per Share Reconciliati
Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net Income available to common stockholders for purposes of computing basic earnings per share | $ 477.9 | $ 483.3 | $ 502.4 | ||||||||
Net Income available to common stockholders for purposes of computing diluted earnings per share | $ 477.9 | $ 483.3 | $ 502.4 | ||||||||
Weighted-average number of shares outstanding reconciliation (in thousands): | |||||||||||
Basic shares | 107,560 | 109,709 | 110,163 | ||||||||
Effect of dilution | 201 | 206 | 270 | ||||||||
Diluted | 107,761 | 109,915 | 110,433 | ||||||||
Earnings per Share [Abstract] | |||||||||||
Basic earnings per share | $ 1.21 | $ 1.12 | $ 1.12 | $ 1 | $ 1.28 | $ 1.20 | $ 1.01 | $ 0.91 | $ 4.44 | $ 4.41 | $ 4.56 |
Diluted earnings per share | $ 1.21 | $ 1.12 | $ 1.11 | $ 0.99 | $ 1.28 | $ 1.20 | $ 1.01 | $ 0.91 | $ 4.43 | $ 4.40 | $ 4.55 |
Stock Options [Member] | |||||||||||
Potentially dilutive shares excluded from the calculation [Abstract] | |||||||||||
Stock options excluded as their inclusion would be anti-dilutive | 185 | 84 | 57 |
Property and Equipment (inclu48
Property and Equipment (including Concession Assets) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated amortization | $ 610.7 | $ 538 | |
Concession assets, net of accumulated amortization | 2,131.6 | 2,070.5 | |
Capitalized interest during period | 0.5 | 0.7 | $ 0.9 |
Depreciation and amortization | $ 305 | $ 284.6 | $ 258.1 |
Property and Equipment (inclu49
Property and Equipment (including Concession Assets) Schedule of Property and Equipment (including Concession Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 10,461.8 | $ 9,813.7 | |
Accumulated Depreciation | (2,392.1) | (2,108.3) | |
Net Book Value | 8,069.7 | 7,705.4 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 219.2 | 218.1 | |
Accumulated Depreciation | 0 | 0 | |
Net Book Value | 219.2 | 218.1 | |
Concession land rights [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 141.2 | 141.2 | |
Accumulated Depreciation | (25.1) | (23.7) | |
Net Book Value | $ 116.1 | $ 117.5 | |
Depreciation Rates | 1.00% | 1.00% | |
Road property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 7,186 | $ 6,784.3 | |
Accumulated Depreciation | (1,707.8) | (1,516.9) | |
Net Book Value | $ 5,478.2 | $ 5,267.4 | |
Depreciation Rates | 2.80% | 2.70% | |
Rail and other track material [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 1,925.4 | $ 1,814.7 | |
Accumulated Depreciation | (445) | (394.6) | |
Net Book Value | $ 1,480.4 | $ 1,420.1 | |
Rail and other track material [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 1.60% | 1.80% | |
Rail and other track material [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 3.20% | 3.00% | |
Ties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 1,710.1 | $ 1,596.2 | |
Accumulated Depreciation | (423.8) | (357.1) | |
Net Book Value | $ 1,286.3 | $ 1,239.1 | |
Ties [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 2.00% | 2.00% | |
Ties [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 5.00% | 4.10% | |
Grading [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 910.7 | $ 878.4 | |
Accumulated Depreciation | (153.9) | (144.9) | |
Net Book Value | $ 756.8 | $ 733.5 | |
Depreciation Rates | 0.90% | 0.90% | |
Bridges and tunnels [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 739.4 | $ 703.4 | |
Accumulated Depreciation | (137.6) | (130.7) | |
Net Book Value | $ 601.8 | $ 572.7 | |
Depreciation Rates | 1.10% | 1.10% | |
Ballast [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 748.3 | $ 696.6 | |
Accumulated Depreciation | (215.1) | (187.7) | |
Net Book Value | $ 533.2 | $ 508.9 | |
Ballast [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 2.50% | 2.50% | |
Ballast [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 4.70% | 4.10% | |
Other road property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | [1] | $ 1,152.1 | $ 1,095 |
Accumulated Depreciation | [1] | (332.4) | (301.9) |
Net Book Value | [1] | $ 819.7 | $ 793.1 |
Depreciation Rates | [1] | 3.00% | 3.00% |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 2,439.8 | $ 2,326.1 | |
Accumulated Depreciation | (533) | (447) | |
Net Book Value | $ 1,906.8 | $ 1,879.1 | |
Depreciation Rates | 4.20% | 4.40% | |
Locomotives [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 1,485.9 | $ 1,456.6 | |
Accumulated Depreciation | (356.9) | (302.7) | |
Net Book Value | $ 1,129 | $ 1,153.9 | |
Depreciation Rates | 4.50% | 4.60% | |
Freight cars [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 887.7 | $ 809.6 | |
Accumulated Depreciation | (152.5) | (123.6) | |
Net Book Value | $ 735.2 | $ 686 | |
Depreciation Rates | 3.50% | 3.90% | |
Other equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 66.2 | $ 59.9 | |
Accumulated Depreciation | (23.6) | (20.7) | |
Net Book Value | $ 42.6 | $ 39.2 | |
Depreciation Rates | 6.40% | 6.50% | |
Technology and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 182.2 | $ 159.3 | |
Accumulated Depreciation | (126.2) | (120.7) | |
Net Book Value | $ 56 | $ 38.6 | |
Depreciation Rates | 17.40% | 15.60% | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 293.4 | $ 184.7 | |
Accumulated Depreciation | 0 | 0 | |
Net Book Value | $ 293.4 | $ 184.7 | |
[1] | Other includes signals, buildings and other road assets. |
Lease Termination Costs (Detail
Lease Termination Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Lease Termination Costs [Line Items] | ||||
Lease termination costs included in operating expenses | $ 9.6 | $ 0 | $ 9.6 | $ 38.3 |
Equipment under operating leases [Member] | ||||
Lease Termination Costs [Line Items] | ||||
Property, plant and equipment additions | $ 26.6 | $ 144.2 | $ 300.7 |
Other Balance Sheet Captions Ot
Other Balance Sheet Captions Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Balance Sheet Captions [Abstract] | ||
Refundable taxes | $ 113.2 | $ 71.6 |
Prepaid expenses | 18.2 | 16.8 |
Other | 2.4 | 2.2 |
Other current assets | $ 133.8 | $ 90.6 |
Other Balance Sheet Captions Ac
Other Balance Sheet Captions Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Balance Sheet Captions [Abstract] | |||
Accounts payable | $ 247.8 | $ 176.7 | |
Accrued wages and vacation | 78.7 | 50.9 | |
Derailments, personal injury and other claim provisions | 39.2 | 40.5 | |
Foreign currency derivative instruments | 41.1 | 46 | |
Dividends payable | 35.2 | 35.9 | $ 31 |
Income and other taxes | 36 | 18.8 | |
Other | 59.7 | 32.7 | |
Accounts payable and accrued liabilities | $ 537.7 | $ 401.5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of Company's debt | $ 2,296.9 | $ 2,321.1 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Company's debt | 2,303.8 | 2,287.5 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency derivative instrument liabilities | $ 41.1 | $ 46 |
Derivative Instruments Summary
Derivative Instruments Summary of Foreign Currecy Derivative Contracts (Details) - Not Designated as Hedging Instrument [Member] MXN in Millions, $ in Millions | Apr. 29, 2016USD ($) | Jan. 15, 2016USD ($) | Sep. 28, 2015USD ($) | Jan. 15, 2015USD ($) | Dec. 31, 2016MXNMXN / $ | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)MXN / $ | Apr. 29, 2016MXNMXN / $ | Apr. 29, 2016USD ($)MXN / $ | Jan. 15, 2016MXNMXN / $ | Jan. 15, 2016USD ($)MXN / $ | Jan. 15, 2015MXNMXN / $ | Jan. 15, 2015USD ($)MXN / $ | Dec. 31, 2014MXNMXN / $ | Dec. 31, 2014USD ($)MXN / $ |
Foreign Currency Forward Contracts [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of foreign currency contracts | MXN 6,207.7 | $ 340 | MXN 1,057.3 | $ 60 | MXN 4,480.4 | $ 300 | MXN 4,364.7 | $ 300 | MXN 4,642.5 | $ 345 | |||||
Weighted-average exchange rate of foreign currency forward contracts (in Ps per USD) | MXN / $ | 18.3 | 18.3 | 17.6 | 17.6 | 14.9 | 14.9 | 14.6 | 14.6 | 13.5 | 13.5 | |||||
Maturity date of foreign currency contracts | Apr. 29, 2016 | Jan. 15, 2016 | Jan. 15, 2015 | Jan. 17, 2017 | Dec. 31, 2014 | ||||||||||
Foreign Currency Forward Contracts [Member] | Foreign Exchange Loss [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Cash received on settlement of foreign currency contracts | $ 0.7 | ||||||||||||||
Cash paid on settlement of foreign currency contracts | $ (49) | $ (1.2) | $ (23.6) | ||||||||||||
Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instrument [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of foreign currency contracts | MXN 1,057.3 | $ 60.7 | MXN 4,480.4 | $ 251 | MXN 4,364.7 | $ 298.8 | MXN 4,642.5 | $ 321.4 | |||||||
Weighted-average exchange rate of foreign currency forward contracts (in Ps per USD) | MXN / $ | 17.4 | 17.4 | 17.9 | 17.9 | 14.6 | 14.6 | 14.4 | 14.4 | |||||||
Maturity date of foreign currency contracts | Apr. 29, 2016 | Jan. 15, 2016 | Jan. 15, 2015 | Dec. 31, 2014 | |||||||||||
Foreign Currency Zero-Cost Collar Contracts [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of foreign currency contracts | $ 50 | $ 80 | |||||||||||||
Maturity date of foreign currency contracts | Jan. 15, 2016 | Sep. 28, 2015 | |||||||||||||
Foreign Currency Zero-Cost Collar Contracts [Member] | Foreign Exchange Loss [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Cash paid on settlement of foreign currency contracts | $ (10.1) | $ (4.3) |
Derivative Instruments Fair Val
Derivative Instruments Fair Value of Derivative Instruments (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 41.1 | $ 46 |
Foreign Currency Forward Contracts [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 41.1 | 39.8 |
Foreign Currency Zero-Cost Collar Contracts [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 0 | $ 6.2 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments Affecting the Consolidated Statements of Income (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ (53.5) | $ (47.2) | $ (27.9) |
Foreign Currency Forward Contracts [Member] | Foreign Exchange Loss [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | (49.6) | (36.7) | (27.9) |
Foreign Currency Zero-Cost Collar Contracts [Member] | Foreign Exchange Loss [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ (3.9) | $ (10.5) | $ 0 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - KCS [Member] - Commercial Paper [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Borrowings [Line Items] | ||
Amount of commercial paper outstanding | $ 181.3 | $ 80 |
Debt instrument, discount | $ 0.1 | |
Weighted-average interest rate of commercial paper outstanding | 1.29% | 1.072% |
Long-Term Debt Schedule of Long
Long-Term Debt Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 29, 2016 | Dec. 31, 2015 | Feb. 21, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 2,309.1 | ||||
Unamortized discount and debt issuance costs | 30.5 | $ 30.4 | |||
Total, gross | 2,327.4 | 2,351.5 | |||
Total | 2,296.9 | 2,321.1 | |||
Less: Debt due within one year, gross | 25.4 | 276.1 | |||
Unamortized discount and debt issuance costs, current | 0 | 0 | |||
Less: Debt due within one year | 25.4 | 276.1 | |||
Long-term debt, gross | 2,302 | 2,075.4 | |||
Unamortized discount and debt issuance costs, noncurrent | 30.5 | 30.4 | |||
Long-term debt | 2,271.5 | 2,045 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 0 | 0 | |||
Unamortized discount and debt issuance costs | 0 | 0 | |||
Long-term debt instrument | 0 | 0 | |||
Senior Notes [Member] | KCS [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 2,093.5 | ||||
Senior Notes [Member] | KCS [Member] | Floating rate senior notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 0 | 244.8 | |||
Unamortized discount and debt issuance costs | 0 | 1 | |||
Long-term debt instrument | 0 | 243.8 | |||
Senior Notes [Member] | KCS [Member] | 2.35% senior notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 257.3 | 239.5 | |||
Unamortized discount and debt issuance costs | 1.7 | 2.1 | |||
Long-term debt instrument | $ 255.6 | 237.4 | |||
Debt instrument, stated interest rate | 2.35% | ||||
Senior Notes [Member] | KCS [Member] | 3.00% senior notes due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 439.1 | 439.1 | |||
Unamortized discount and debt issuance costs | 4.7 | 5.4 | |||
Long-term debt instrument | $ 434.4 | 433.7 | |||
Debt instrument, stated interest rate | 3.00% | ||||
Senior Notes [Member] | KCS [Member] | 3.85% senior notes due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 199.2 | 195 | |||
Unamortized discount and debt issuance costs | 2 | 2.2 | |||
Long-term debt instrument | $ 197.2 | 192.8 | |||
Debt instrument, stated interest rate | 3.85% | ||||
Senior Notes [Member] | KCS [Member] | 3.125% senior notes due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 250 | 0 | |||
Unamortized discount and debt issuance costs | 3.4 | 0 | |||
Long-term debt instrument | $ 246.6 | 0 | |||
Debt instrument, stated interest rate | 3.125% | ||||
Senior Notes [Member] | KCS [Member] | 4.30% senior notes due 2043 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 448.7 | 437.6 | |||
Unamortized discount and debt issuance costs | 9.6 | 9.8 | |||
Long-term debt instrument | $ 439.1 | 427.8 | |||
Debt instrument, stated interest rate | 4.30% | ||||
Senior Notes [Member] | KCS [Member] | 4.95% senior notes due 2045 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 499.2 | 476.7 | |||
Unamortized discount and debt issuance costs | 8 | 7.9 | |||
Long-term debt instrument | $ 491.2 | 468.8 | |||
Debt instrument, stated interest rate | 4.95% | ||||
Senior Notes [Member] | KCSR [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 2.9 | 40.7 | |||
Unamortized discount and debt issuance costs | 0 | 0.6 | |||
Long-term debt instrument | $ 2.9 | 40.1 | |||
Senior Notes [Member] | KCSR [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.85% | ||||
Senior Notes [Member] | KCSR [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.95% | ||||
Senior Notes [Member] | KCSR [Member] | 3.85% senior notes due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 0.8 | $ 5 | |||
Debt instrument, stated interest rate | 3.85% | ||||
Senior Notes [Member] | KCSR [Member] | 4.30% senior notes due 2043 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 1.3 | $ 12.4 | |||
Debt instrument, stated interest rate | 4.30% | ||||
Senior Notes [Member] | KCSR [Member] | 4.95% senior notes due 2045 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 0.8 | $ 23.3 | |||
Debt instrument, stated interest rate | 4.95% | ||||
Senior Notes [Member] | KCSM [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 28.5 | 51.5 | |||
Unamortized discount and debt issuance costs | 0.2 | 0.3 | |||
Long-term debt instrument | $ 28.3 | 51.2 | |||
Senior Notes [Member] | KCSM [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 2.35% | ||||
Senior Notes [Member] | KCSM [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.00% | ||||
Senior Notes [Member] | KCSM [Member] | 2.35% senior notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 17.6 | $ 35.4 | |||
Debt instrument, stated interest rate | 2.35% | ||||
Secured Debt [Member] | RRIF loans due serially through 2037 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 81.4 | 84.9 | |||
Unamortized discount and debt issuance costs | 0.5 | 0.6 | |||
Long-term debt instrument | $ 80.9 | 84.3 | |||
Secured Debt [Member] | RRIF loans due serially through 2037 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 2.96% | ||||
Secured Debt [Member] | RRIF loans due serially through 2037 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.29% | ||||
Secured Debt [Member] | Financing agreements due serially through 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | $ 102.5 | 119.9 | |||
Unamortized discount and debt issuance costs | 0.4 | 0.5 | |||
Long-term debt instrument | $ 102.1 | 119.4 | |||
Secured Debt [Member] | Financing agreements due serially through 2023 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 5.737% | ||||
Secured Debt [Member] | Financing agreements due serially through 2023 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 9.31% | ||||
Secured Debt [Member] | KCSR [Member] | RRIF loans due serially through 2037 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 2.96% | ||||
Secured Debt [Member] | KCSM [Member] | Financing agreements due serially through 2023 [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 5.737% | ||||
Secured Debt [Member] | KCSM [Member] | Financing agreements due serially through 2023 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 9.31% | ||||
Capital Lease Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Capital lease obligations | $ 18.3 | 21.4 | |||
Other Debt Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt instrument, gross | 0.3 | 0.4 | |||
Unamortized discount and debt issuance costs | 0 | 0 | |||
Long-term debt instrument | $ 0.3 | $ 0.4 |
Long-Term Debt Revolving Credit
Long-Term Debt Revolving Credit Facility (Details) - KCS [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
KCS Commercial Paper Program [Member] | Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Commercial paper maximum borrowing capacity | $ 800 | |
Revolving Credit Facility [Member] | KCS Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 800 | |
Revolving credit facility maturity date | Dec. 9, 2020 | |
Outstanding borrowings under the revolving credit facility | $ 0 | $ 0 |
Revolving Credit Facility [Member] | KCS Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Margin KCS pays or would pay above the LIBOR | 1.50% | |
Revolving Credit Facility [Member] | KCS Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Margin KCS pays or would pay above the LIBOR | 1.125% | |
Revolving Credit Facility [Member] | KCS Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Margin KCS pays or would pay above the LIBOR | 2.00% | |
Revolving Credit Facility [Member] | KCS Revolving Credit Facility [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 25 |
Long-Term Debt Debt Exchange (D
Long-Term Debt Debt Exchange (Details) - USD ($) $ in Millions | Mar. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Conversion [Line Items] | |||
Outstanding principal amount of the Senior Notes | $ 2,309.1 | ||
KCSR [Member] | Senior Notes [Member] | |||
Debt Conversion [Line Items] | |||
Outstanding principal amount of the Senior Notes | 2.9 | $ 40.7 | |
KCSR [Member] | Senior Notes [Member] | 3.85% Senior Notes due 2023 [Member] | |||
Debt Conversion [Line Items] | |||
Debt instrument, stated interest rate | 3.85% | ||
Outstanding principal amount of the Senior Notes | $ 5 | 0.8 | |
Principal amount of Existing Notes exchanged | $ 4.2 | ||
KCSR [Member] | Senior Notes [Member] | 4.30% Senior Notes due 2043 [Member] | |||
Debt Conversion [Line Items] | |||
Debt instrument, stated interest rate | 4.30% | ||
Outstanding principal amount of the Senior Notes | $ 12.4 | 1.3 | |
Principal amount of Existing Notes exchanged | $ 11.1 | ||
KCSR [Member] | Senior Notes [Member] | 4.95% Senior Notes due 2045 [Member] | |||
Debt Conversion [Line Items] | |||
Debt instrument, stated interest rate | 4.95% | ||
Outstanding principal amount of the Senior Notes | $ 23.3 | 0.8 | |
Principal amount of Existing Notes exchanged | $ 22.5 | ||
KCSM [Member] | Senior Notes [Member] | |||
Debt Conversion [Line Items] | |||
Outstanding principal amount of the Senior Notes | 28.5 | $ 51.5 | |
KCSM [Member] | Senior Notes [Member] | 2.35% Senior Notes due 2020 [Member] | |||
Debt Conversion [Line Items] | |||
Debt instrument, stated interest rate | 2.35% | ||
Outstanding principal amount of the Senior Notes | $ 35.4 | $ 17.6 | |
Principal amount of Existing Notes exchanged | $ 17.8 |
Long-Term Debt Senior Notes (De
Long-Term Debt Senior Notes (Details) - Senior Notes [Member] - USD ($) $ in Millions | Oct. 28, 2016 | May 16, 2016 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Redemption option senior notes, price expressed as a percent of principal amount | 100.00% | ||
Floating Rate Senior Notes Due October 28, 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Gross amount of floating rate senior notes redeemed | $ 250 | ||
Redemption price expressed as a percent of principal amount | 100.00% | ||
KCSM [Member] | |||
Debt Instrument [Line Items] | |||
Additional redemption option KCSM senior notes, price expressed as percent of principal amount | 100.00% | ||
KCS [Member] | 3.125% Senior Notes Due June 1, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 250 | ||
Debt instrument, maturity date | Jun. 1, 2026 | ||
Debt instrument, stated interest rate | 3.125% | ||
Debt instrument, discount | $ 1.3 | ||
Debt instrument, yield to maturity | 3.185% |
Long-Term Debt RRIF Loan Agreem
Long-Term Debt RRIF Loan Agreements (Details) - Secured Debt [Member] - RRIF Loan Agreement [Member] $ in Millions | Feb. 21, 2012USD ($)locomotives | Jun. 28, 2005USD ($) |
KCSR [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 54.6 | |
Number of new locomotives acquired | locomotives | 30 | |
Debt instrument, stated interest rate | 2.96% | |
Debt instrument, maturity date | Feb. 24, 2037 | |
Tex Mex [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 50 | |
Debt instrument, stated interest rate | 4.29% | |
Debt instrument, maturity date | Jul. 13, 2030 |
Long-Term Debt Locomotive Finan
Long-Term Debt Locomotive Financing Agreements (Details) - Secured Debt [Member] - Financing Agreement [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2011 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 5.737% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 9.31% | |
KCSM [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 216 | |
KCSM [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 5.737% | |
KCSM [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 9.31% |
Long-Term Debt Leases and Debt
Long-Term Debt Leases and Debt Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |||
Rental expenses under operating leases | $ 61 | $ 63.9 | $ 76.4 |
Long-Term Debt | |||
Long-Term Debt, Payments Due in 2017 | 22 | ||
Long-Term Debt, Payments Due in 2018 | 35.2 | ||
Long-Term Debt, Payments Due in 2019 | 15.5 | ||
Long-Term Debt, Payments Due in 2020 | 299 | ||
Long-Term Debt, Payments Due in 2021 | 8.8 | ||
Long-Term Debt, Payments Due Thereafter | 1,928.6 | ||
Total Long-Term Debt | 2,309.1 | ||
Capital Leases, Minimum Lease Payments | |||
Capital Leases, Minimum Lease Payments Due in 2017 | 4.9 | ||
Capital Leases, Minimum Lease Payments Due in 2018 | 4.9 | ||
Capital Leases, Minimum Lease Payments Due in 2019 | 3.7 | ||
Capital Leases, Minimum Lease Payments Due in 2020 | 2.7 | ||
Capital Leases, Minimum Lease Payments Due in 2021 | 2.7 | ||
Capital Leases, Minimum Lease Payments Due Thereafter | 5.1 | ||
Capital Leases, Minimum Lease Payments Total Due | 24 | ||
Capital Leases, Minimum Interest Payments | |||
Capital Leases, Minimum Interest Payments Due in 2017 | 1.5 | ||
Capital Leases, Minimum Interest Payments Due in 2018 | 1.3 | ||
Capital Leases, Minimum Interest Payments Due in 2019 | 1 | ||
Capital Leases, Minimum Interest Payments Due in 2020 | 0.8 | ||
Capital Leases, Minimum Interest Payments Due in 2021 | 0.6 | ||
Capital Leases, Minimum Interest Payments Due Thereafter | 0.5 | ||
Capital Leases, Minimum Interest Payments Total Due | 5.7 | ||
Capital Leases, Net Present Value | |||
Capital Leases, Net Present Value Due in 2017 | 3.4 | ||
Capital Leases, Net Present Value Due in 2018 | 3.6 | ||
Capital Leases, Net Present Value Due in 2019 | 2.7 | ||
Capital Leases, Net Present Value Due in 2020 | 1.9 | ||
Capital Leases, Net Present Value Due in 2021 | 2.1 | ||
Capital Leases, Net Present Value Due Thereafter | 4.6 | ||
Capital Leases, Net Present Value Total Due | 18.3 | ||
Total Debt | |||
Total Debt Due in 2017 | 25.4 | ||
Total Debt Due in 2018 | 38.8 | ||
Total Debt Due in 2019 | 18.2 | ||
Total Debt Due in 2020 | 300.9 | ||
Total Debt Due in 2021 | 10.9 | ||
Total Debt Due Thereafter | 1,933.2 | ||
Total | 2,327.4 | $ 2,351.5 | |
Operating Leases, Minimum Lease Payments | |||
Operating Leases, Minimum Lease Payments Due in 2017 | 66.4 | ||
Operating Leases, Minimum Lease Payments Due in 2018 | 45.1 | ||
Operating Leases, Minimum Lease Payments Due in 2019 | 39.9 | ||
Operating Leases, Minimum Lease Payments Due in 2020 | 32.9 | ||
Operating Leases, Minimum Lease Payments Due in 2021 | 21.7 | ||
Operating Leases, Minimum Lease Payments Due Thereafter | 94.5 | ||
Operating Leases, Minimum Lease Payments Total Due | 300.5 | ||
Total Debt and Operating Leases | |||
Total Debt and Operating Leases, Payments Due in 2017 | 91.8 | ||
Total Debt and Operating Leases, Payments Due in 2018 | 83.9 | ||
Total Debt and Operating Leases, Payments Due in 2019 | 58.1 | ||
Total Debt and Operating Leases, Payments Due in 2020 | 333.8 | ||
Total Debt and Operating Leases, Payments Due in 2021 | 32.6 | ||
Total Debt and Operating Leases, Payments Due Thereafter | 2,027.7 | ||
Total Debt and Operating Leases, Payments Due Total | $ 2,627.9 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 1 | $ 0 | $ (2.5) |
State and local | 0.6 | 0.3 | 1.2 |
Foreign | 76.4 | 51.2 | 70 |
Total current | 78 | 51.5 | 68.7 |
Deferred: | |||
Federal | 92.7 | 109.3 | 112.6 |
State and local | 13.1 | 15.5 | 16.9 |
Foreign | (1) | 11 | 10.6 |
Total deferred | 104.8 | 135.8 | 140.1 |
Income tax expense | $ 182.8 | $ 187.3 | $ 208.8 |
Income Taxes Schedule of Inco66
Income Taxes Schedule of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 279.9 | $ 315 | $ 326.5 |
Foreign | 382.8 | 357.6 | 386.6 |
Income before income taxes | $ 662.7 | $ 672.6 | $ 713.1 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Tax credit and loss carryovers | $ 70.7 | $ 83.6 |
Reserves not currently deductible for tax | 79.8 | 84.2 |
Other | 31.6 | 35.7 |
Gross deferred tax assets before valuation allowance | 182.1 | 203.5 |
Valuation allowance | (1.7) | (1.1) |
Net deferred tax assets | 180.4 | 202.4 |
Liabilities: | ||
Property | (1,389) | (1,314.9) |
Investments | (73.8) | (71.3) |
Other | (6.9) | (7.3) |
Gross deferred tax liabilities | (1,469.7) | (1,393.5) |
Net deferred tax liability | $ (1,289.3) | $ (1,191.1) |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Income tax expense using the statutory rate in effect | $ 231.9 | $ 235.4 | $ 249.6 | |
Tax effect of: | ||||
Difference between U.S. and foreign tax rate | (17.4) | (17.8) | (23) | |
Foreign exchange | [1] | (45) | (40.5) | (24.2) |
State and local income tax provision, net | 8.1 | 10.3 | 11.7 | |
Other, net | 5.2 | (0.1) | (5.3) | |
Income tax expense | $ 182.8 | $ 187.3 | $ 208.8 | |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Tax rate effect of: | ||||
Difference between U.S. and foreign tax rate | (2.60%) | (2.60%) | (3.20%) | |
Foreign exchange | [1] | (6.80%) | (6.10%) | (3.40%) |
State and local income tax provision, net | 1.20% | 1.50% | 1.60% | |
Other, net | 0.80% | 0.00% | (0.70%) | |
Effective income tax rate | 27.60% | 27.80% | 29.30% | |
[1] | Mexican income taxes are paid in Mexican pesos, and as a result, the effective income tax rate reflects fluctuations in the value of the Mexican peso against the U.S. dollar. The foreign exchange impact on income taxes includes the gain or loss from the revaluation of the Company’s net U.S. dollar-denominated monetary liabilities into Mexican pesos which is included in Mexican taxable income under Mexican tax law. As a result, a strengthening of the Mexican peso against the U.S. dollar for the reporting period will generally increase the Mexican cash tax obligation and the effective income tax rate, and a weakening of the Mexican peso against the U.S. dollar for the reporting period will generally decrease the Mexican cash tax obligation and the effective tax rate. To hedge its exposure to this cash tax risk, the Company enters into foreign currency derivative contracts, which are measured at fair value each period and any change in fair value is recognized in foreign exchange loss within the consolidated statements of income. |
Income Taxes Uncertain Tax Posi
Income Taxes Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Rollforward] | ||
Balance at January 1, | $ 1.7 | $ 1.7 |
Additions based on tax positions related to the current year | 1.3 | 0 |
Additions for tax positions of prior years | 2.5 | 0 |
Reductions as a result of lapse of statute of limitations | (1.7) | 0 |
Balance at December 31, | $ 3.8 | $ 1.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Line Items] | |
Amount the Company's book basis exceeded the tax basis of its foreign investments | $ 2,181.8 |
Gross federal income taxes the Company would incur if the earnings were to be remitted in a taxable transaction | 763.6 |
State and Local Jurisdiction [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforward, amount | $ 435.1 |
State and Local Jurisdiction [Member] | Minimum [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforward, period | 5 years |
State and Local Jurisdiction [Member] | Maximum [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforward, period | 20 years |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | |
Income Tax Disclosure [Line Items] | |
Tax credit carryforward, amount | $ 49.6 |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Track Maintenance Credits [Member] | |
Income Tax Disclosure [Line Items] | |
Tax credit carryforward, amount | 37.2 |
Mexican Tax Authority [Member] | Foreign Tax Authority [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforward, amount | 7.5 |
Tax credit carryforward, amount | $ 4.3 |
Stockholders' Equity Capital St
Stockholders' Equity Capital Stock Shares Authorized, Issued and Outstanding (Details) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares Issued | 123,352,185 | 123,352,185 |
Common Stock, Shares Outstanding | 106,606,619 | 108,461,144 |
$25 Par Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 840,000 | 840,000 |
Preferred Stock, Shares Issued | 649,736 | 649,736 |
Preferred Stock, Shares Outstanding | 242,170 | 242,170 |
$1 Par Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Common Stock, Par Value | $ 0.01 | $ 0.01 | |
$25 Par Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Par Value | $ 25 | $ 25 | $ 25 |
Preferred Stock, Dividend Rate | 4.00% | 4.00% | |
$1 Par Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Par Value | $ 1 | $ 1 |
Stockholders' Equity Share Repu
Stockholders' Equity Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | 20 Months Ended | ||
May 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Equity [Abstract] | |||||
Maximum amount of share repurchase program | $ 500 | ||||
Expiration date of share repurchase program | Jun. 30, 2017 | ||||
Shares repurchased (shares) | 2,127,612 | 2,133,984 | 0 | 4,261,596 | |
Shares repurchased | $ 185.4 | $ 194.2 | $ 379.6 | ||
Average price of shares repurchased | $ 87.15 | $ 89.07 |
Stockholders' Equity Treasury S
Stockholders' Equity Treasury Stock (Details) - shares | 12 Months Ended | 20 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Balance at beginning of year | 14,891,041 | 12,959,855 | 13,122,956 | |
Shares repurchased | 2,127,612 | 2,133,984 | 0 | 4,261,596 |
Shares issued to fund stock option exercises | (15,264) | (89,035) | (46,100) | |
Employee stock purchase plan shares issued | (82,372) | (52,736) | (33,402) | |
Nonvested shares issued | (179,309) | (62,936) | (121,865) | |
Nonvested shares forfeited | 3,858 | 1,909 | 38,266 | |
Balance at end of year | 16,745,566 | 14,891,041 | 12,959,855 | 16,745,566 |
Stockholders' Equity Cash Divid
Stockholders' Equity Cash Dividends on Common Stock (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Cash dividends declared per common share | $ 1.32 | $ 1.32 | $ 1.12 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | Feb. 19, 2016$ / sharesdaysTranchesshares | Dec. 31, 2016shares |
Nonvested Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, number of shares | shares | 174,703 | |
Market-based Award [Member] | Nonvested Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, number of shares | shares | 66,320 | |
Number of tranches | Tranches | 3 | |
Market condition, number of trading days | days | 20 | |
Target price number one | $ / shares | 84.14 | |
Target price number two | $ / shares | 91.79 | |
Target price number three | $ / shares | 99.44 | |
Stock Option and Performance Award Plan 2008 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | shares | 2,300,000 |
Share-Based Compensation, Stock
Share-Based Compensation, Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised, number of shares | (15,264) | (89,035) | (46,100) |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Contractual term (years) | 10 years | ||
Expected dividend yield | 1.60% | 0.94% | 1.19% |
Expected volatility | 32.29% | 37.11% | 45.57% |
Risk-free interest rate | 1.51% | 1.82% | 1.96% |
Expected term (years) | 6 years | 6 years | 6 years |
Weighted-average grant date fair value of stock options granted | $ 22.98 | $ 41.49 | $ 38.31 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, number of shares, beginning of period | 317,745 | ||
Options, weighted-average exercise price per share, beginning of period | $ 73.94 | ||
Granted, number of shares | 113,127 | ||
Granted, weighted-average exercise price | $ 82.71 | ||
Exercised, number of shares | (15,264) | ||
Exercised, weighted-average exercise price per share | $ 57.48 | ||
Forfeited or expired, number of shares | (805) | ||
Forfeited or expired, weighted-average exercise price per share | $ 106.52 | ||
Options outstanding, number of shares, end of period | 414,803 | 317,745 | |
Options, weighted-average exercise price per share, end of period | $ 76.87 | $ 73.94 | |
Options outstanding, weighted-average remaining contractual term | 6 years 4 months 24 days | ||
Options outstanding, aggregate intrinsic value | $ 6 | ||
Vested and expected to vest, number of shares | 411,726 | ||
Vested and expected to vest, weighted-average exercise price per share | $ 76.77 | ||
Vested and expected to vest, weighted-average remaining contractual term | 6 years 4 months 24 days | ||
Vested and expected to vest, aggregate intrinsic value | $ 6 | ||
Exercisable, number of shares | 253,188 | ||
Exercisable, weighted-average exercise price per share | $ 67.60 | ||
Exercisable, weighted-average remaining contractual term | 5 years | ||
Exercisable, aggregate intrinsic value | $ 5.8 | ||
Compensation expense | 2.5 | $ 2 | $ 1.7 |
Income tax benefit recognized in the income statement | 0.9 | 0.7 | 0.7 |
Aggregate grant-date fair value of stock options vested | 1.8 | 2 | 2.3 |
Intrinsic value of stock options exercised | 0.6 | 6.1 | 3.3 |
Cash received from option exercises | 0.9 | 4.2 | 2 |
Tax benefit realized from options exercised during the annual period | 0.2 | $ 2.3 | $ 1.3 |
Unrecognized compensation cost relating to nonvested stock options | $ 1.1 | ||
Unrecognized compensation cost weighted-average period of recognition | 1 year | ||
Shares available for future grants | 562,754 |
Share-Based Compensation, Nonve
Share-Based Compensation, Nonvested Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 19, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Forfeited, number of shares | (3,858) | (1,909) | (38,266) | |
Nonvested Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested stock, number of shares, beginning of period | 146,783 | |||
Nonvested stock, weighted-average grant date fair value, beginning of period | $ 99.61 | |||
Granted, number of shares | 174,703 | |||
Granted, weighted-average grant date fair value | $ 80.92 | $ 112.03 | $ 105.04 | |
Vested, number of shares | (79,618) | |||
Vested, weighted-average grant date fair value | $ 81.55 | |||
Forfeited, number of shares | (3,858) | |||
Forfeited, weighted-average grant date fair value | $ 123.02 | |||
Nonvested stock, number of shares, end of period | 238,010 | 146,783 | ||
Nonvested stock, weighted-average grant date fair value, end of period | $ 91.55 | $ 99.61 | ||
Nonvested stock, aggregate intrinsic value | $ 20.2 | |||
Shares vested, fair value | 7 | $ 6.4 | $ 8.5 | |
Compensation expense | 9.6 | 5.1 | 4 | |
Income tax benefit recognized in the income statement | 3.5 | $ 1.9 | $ 1.5 | |
Unrecognized compensation cost relating to nonvested stock | $ 11.4 | |||
Unrecognized compensation cost weighted-average period of recognition | 1 year 4 months 24 days | |||
Nonvested Stock [Member] | Minimum [Member] | Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Nonvested Stock [Member] | Maximum [Member] | Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Market-based Award [Member] | Nonvested Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 1.58% | |||
Expected volatility | 31.68% | |||
Risk-free interest rate, minimum | 0.53% | |||
Risk-free interest rate, maximum | 1.89% | |||
Expected term (years) | 1 year 10 months 10 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, number of shares | 66,320 | |||
Granted, weighted-average grant date fair value | $ 70.95 |
Share-Based Compensation, Perfo
Share-Based Compensation, Performance Based Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Forfeited, number of shares | (3,858) | (1,909) | (38,266) | |
Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 3 years | |||
OR and ROIC performance period | 3 years | |||
Revenue growth multiplier performance period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested stock, number of shares, beginning of period | [1] | 141,604 | ||
Nonvested stock, weighted-average grant date fair value, beginning of period | $ 106.83 | |||
Granted, number of shares | [1] | 62,866 | ||
Granted, weighted-average grant date fair value | $ 82.71 | $ 119.35 | $ 94.23 | |
Vested, number of shares | [1] | (59,463) | ||
Vested, weighted-average grant date fair value | $ 105.03 | |||
Forfeited, number of shares | [1] | (608) | ||
Forfeited, weighted-average grant date fair value | $ 105.55 | |||
Nonvested stock, number of shares, end of period | [1] | 144,399 | 141,604 | |
Nonvested stock, weighted-average grant date fair value, end of period | $ 97.08 | $ 106.83 | ||
Compensation expense | $ 5.7 | $ 3 | $ 3.7 | |
Income tax benefit recognized in the income statement | 2.1 | $ 1.1 | $ 1.3 | |
Unrecognized compensation cost relating to nonvested stock | $ 3.9 | |||
Unrecognized compensation cost weighted-average period of recognition | 1 year | |||
Shares vested, fair value | $ 5 | |||
Performance Based Awards [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Revenue growth multiplier range | 80.00% | |||
Performance based award, earned percentage | 0.00% | |||
Performance Based Awards [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Revenue growth multiplier range | 140.00% | |||
Performance based award, earned percentage | 200.00% | |||
2016 Awards [Member] | Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Maximum number of shares | 125,732 | |||
2015 Awards [Member] | Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Maximum number of shares | 70,420 | |||
2014 Awards [Member] | Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Earned shares | 36,300 | |||
[1] | * For the 2016 Awards and the 2015 Awards, participants in the aggregate can earn up to a maximum of 125,732 and 70,420 shares, respectively. For the 2014 Awards, the performance shares earned were 36,300. |
Share-Based Compensation, Emplo
Share-Based Compensation, Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercised, shares issued | 82,372 | 52,736 | 33,402 | |||||||||
Employee Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized | 4,000,000 | 4,000,000 | ||||||||||
Maximum employee contribution rate | 10.00% | 5.00% | 5.00% | 5.00% | ||||||||
Employee stock purchase plan, purchase price | 85.00% | 90.00% | ||||||||||
Expected dividend yield | 1.65% | 1.20% | 0.99% | |||||||||
Expected volatility | 23.84% | 17.00% | 19.03% | |||||||||
Risk-free interest rate | 0.46% | 0.10% | 0.10% | |||||||||
Expected term (years) | 6 months | 6 months | 6 months | |||||||||
Weighted-average grant date fair value | $ 17.29 | $ 20.55 | $ 17.13 | |||||||||
Compensation expense | $ 1.4 | $ 1.3 | $ 0.6 | |||||||||
Shares available for future grants | 3,600,000 | 3,600,000 | ||||||||||
July 2016 offering ESPP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercised, purchase price | $ 72.12 | |||||||||||
Exercised, shares issued | 36,108 | |||||||||||
Proceeds received from employees | [1] | $ 2.6 | ||||||||||
January 2016 offering ESPP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercised, purchase price | $ 62.66 | |||||||||||
Exercised, shares issued | 41,895 | |||||||||||
Proceeds received from employees | [1] | $ 2.6 | ||||||||||
July 2015 offering ESPP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercised, purchase price | $ 63.47 | |||||||||||
Exercised, shares issued | 40,477 | |||||||||||
Proceeds received from employees | [1] | $ 2.6 | ||||||||||
January 2015 offering ESPP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercised, purchase price | $ 77.52 | |||||||||||
Exercised, shares issued | 35,097 | |||||||||||
Proceeds received from employees | [1] | $ 2.7 | ||||||||||
July 2014 offering ESPP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercised, purchase price | $ 96.48 | |||||||||||
Exercised, shares issued | 17,639 | |||||||||||
Proceeds received from employees | [1] | $ 1.7 | ||||||||||
January 2014 offering ESPP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercised, purchase price | $ 96.76 | |||||||||||
Exercised, shares issued | 17,026 | |||||||||||
Proceeds received from employees | [1] | $ 1.6 | ||||||||||
[1] | Represents amounts received from employees through payroll deductions for share purchases under applicable offering. |
Commitments and Contingencies81
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial Guarantee [Member] | |||
Loss Contingencies [Line Items] | |||
Letter of credit outstanding, amount | $ 5.5 | ||
Percent guarantee of unconsolidated affiliate debt | 50.00% | ||
KCSM [Member] | |||
Loss Contingencies [Line Items] | |||
Total period of time for payments due under railroad Concession to Mexican Government | 50 years | ||
Percentage of gross revenue payable under railroad Concession to Mexican government | 1.25% | ||
KCSM [Member] | Materials and Other Expense [Member] | |||
Loss Contingencies [Line Items] | |||
Concession duty expense | $ 14.9 | $ 15.4 | $ 15.8 |
Panama Canal Railway Company [Member] | Financial Guarantee [Member] | 7.0% Senior Secured Notes due November 1, 2026 [Member] | |||
Loss Contingencies [Line Items] | |||
Debt instrument, stated interest rate | 7.00% | ||
Debt instrument, maturity date | Nov. 1, 2026 |
Commitments and Contingencies P
Commitments and Contingencies Personal Injury Liability Activity (Details) - Personal Injury [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Personal Injury Liability Activity [Roll Forward] | ||
Balance at beginning of year | $ 23.9 | $ 29.3 |
Accruals | 4.8 | 6.8 |
Changes in estimate | (1.1) | (6.1) |
Payments | (3.8) | (6.1) |
Balance at end of year | $ 23.8 | $ 23.9 |
Quarterly Financial Data (Una83
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Quarterly Financial Data [Abstract] | |||||||||||||||
Revenues | $ 598.5 | $ 604.5 | $ 568.5 | $ 562.7 | $ 598 | $ 631.9 | $ 585.8 | $ 603.1 | $ 2,334.2 | $ 2,418.8 | $ 2,577.1 | ||||
Operating income | 210.9 | [1] | 199.8 | [1] | 219.9 | [1] | 187.9 | 218.9 | 219.9 | 186.8 | 178.2 | [2] | 818.5 | 803.8 | 809.1 |
Net income | 130.3 | 121 | 120.5 | 108.1 | 140 | 131.9 | 112.2 | 101.2 | 479.9 | 485.3 | 504.3 | ||||
Net income attributable to Kansas City Southern and subsidiaries | $ 129.6 | $ 120.6 | $ 120.1 | $ 107.8 | $ 139.3 | $ 131.6 | $ 111.8 | $ 100.8 | $ 478.1 | $ 483.5 | $ 502.6 | ||||
Per share data: | |||||||||||||||
Basic earnings per common share | $ 1.21 | $ 1.12 | $ 1.12 | $ 1 | $ 1.28 | $ 1.20 | $ 1.01 | $ 0.91 | $ 4.44 | $ 4.41 | $ 4.56 | ||||
Diluted earnings per common share | $ 1.21 | $ 1.12 | $ 1.11 | $ 0.99 | $ 1.28 | $ 1.20 | $ 1.01 | $ 0.91 | $ 4.43 | $ 4.40 | $ 4.55 | ||||
Mexican fuel excise tax credit | $ 13.2 | $ 15.6 | $ 34 | $ 62.8 | $ 0 | $ 0 | |||||||||
Lease termination costs included in operating expenses | $ 9.6 | $ 0 | $ 9.6 | $ 38.3 | |||||||||||
[1] | During the second, third and fourth quarters of 2016, the Company recognized $34.0 million, $15.6 million and $13.2 million, respectively, of credits available under changes in Mexican law for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in Mexico | ||||||||||||||
[2] | During the first quarter of 2015, the Company recognized pre-tax lease termination costs of $9.6 million, due to the early termination of certain operating leases and the related purchase of equipment. |
Geographic Information (Informa
Geographic Information (Information by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 598.5 | $ 604.5 | $ 568.5 | $ 562.7 | $ 598 | $ 631.9 | $ 585.8 | $ 603.1 | $ 2,334.2 | $ 2,418.8 | $ 2,577.1 |
Property and equipment (including concession assets), net | 8,069.7 | 7,705.4 | 8,069.7 | 7,705.4 | |||||||
UNITED STATES | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,210.8 | 1,248.4 | 1,372.2 | ||||||||
Property and equipment (including concession assets), net | 4,960.6 | 4,642.6 | 4,960.6 | 4,642.6 | |||||||
MEXICO | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,123.4 | 1,170.4 | $ 1,204.9 | ||||||||
Property and equipment (including concession assets), net | $ 3,109.1 | $ 3,062.8 | $ 3,109.1 | $ 3,062.8 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, MXN in Millions, $ in Millions | Jan. 26, 2017USD ($)$ / shares | Jan. 17, 2017MXNMXN / $ | Apr. 29, 2016MXNMXN / $ | Jan. 15, 2016MXNMXN / $ | Sep. 28, 2015USD ($) | Jan. 15, 2015MXNMXN / $ | Jan. 31, 2017USD ($)MXN / $ | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Jan. 17, 2017USD ($)MXN / $ | Dec. 31, 2016MXNMXN / $ | Dec. 31, 2016USD ($)MXN / $ | Apr. 29, 2016USD ($)MXN / $ | Jan. 15, 2016USD ($)MXN / $ | Jan. 15, 2015USD ($)MXN / $ | Dec. 31, 2014MXNMXN / $ | Dec. 31, 2014USD ($)MXN / $ |
Common Stock Dividend [Abstract] | ||||||||||||||||||
Cash dividends declared per common share | $ / shares | $ 1.32 | $ 1.32 | $ 1.12 | |||||||||||||||
Aggregate amount of dividends on common stock | $ 141.9 | $ 144.8 | $ 123.6 | |||||||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Aggregate notional amount of foreign currency contracts | MXN 1,057.3 | MXN 4,480.4 | MXN 4,364.7 | MXN 6,207.7 | $ 340 | $ 60 | $ 300 | $ 300 | MXN 4,642.5 | $ 345 | ||||||||
Maturity date of foreign currency contracts | Apr. 29, 2016 | Jan. 15, 2016 | Jan. 15, 2015 | Jan. 17, 2017 | Dec. 31, 2014 | |||||||||||||
Weighted-average exchange rate of foreign currency forward contracts (in Ps per USD) | MXN / $ | 17.6 | 14.9 | 14.6 | 18.3 | 18.3 | 17.6 | 14.9 | 14.6 | 13.5 | 13.5 | ||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instrument [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Aggregate notional amount of foreign currency contracts | MXN 1,057.3 | MXN 4,480.4 | MXN 4,364.7 | $ 60.7 | $ 251 | $ 298.8 | MXN 4,642.5 | $ 321.4 | ||||||||||
Maturity date of foreign currency contracts | Apr. 29, 2016 | Jan. 15, 2016 | Jan. 15, 2015 | Dec. 31, 2014 | ||||||||||||||
Weighted-average exchange rate of foreign currency forward contracts (in Ps per USD) | MXN / $ | 17.4 | 17.9 | 14.6 | 17.4 | 17.9 | 14.6 | 14.4 | 14.4 | ||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Aggregate notional amount of foreign currency contracts | $ 50 | $ 80 | ||||||||||||||||
Maturity date of foreign currency contracts | Jan. 15, 2016 | Sep. 28, 2015 | ||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||
Common Stock Dividend [Abstract] | ||||||||||||||||||
Cash dividends declared per common share | $ / shares | $ 0.33 | |||||||||||||||||
Aggregate amount of dividends on common stock | $ 35.2 | |||||||||||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instrument [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Aggregate notional amount of foreign currency contracts | MXN 6,207.7 | $ 287 | ||||||||||||||||
Maturity date of foreign currency contracts | Jan. 17, 2017 | |||||||||||||||||
Weighted-average exchange rate of foreign currency forward contracts (in Ps per USD) | MXN / $ | 21.63 | 21.63 | ||||||||||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Aggregate notional amount of foreign currency contracts | $ 380 | |||||||||||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Call Option [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Weighted-average rate of foreign currency zero-cost collar contracts (in Ps. per USD) | MXN / $ | 21.61 | |||||||||||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Put Option [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Weighted-average rate of foreign currency zero-cost collar contracts (in Ps. per USD) | MXN / $ | 23.87 | |||||||||||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Zero Cost Collar Contracts April 2017 Maturiy [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Aggregate notional amount of foreign currency contracts | $ 130 | |||||||||||||||||
Maturity date of foreign currency contracts | Apr. 25, 2017 | |||||||||||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Zero Cost Collar Contracts January 2018 Maturity [Member] | ||||||||||||||||||
Foreign Currency Hedging [Abstract] | ||||||||||||||||||
Aggregate notional amount of foreign currency contracts | $ 250 | |||||||||||||||||
Maturity date of foreign currency contracts | Jan. 16, 2018 |
Condensed Consolidating Finan86
Condensed Consolidating Financial Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||
Outstanding principal amount of the Senior Notes | $ 2,309.1 | |
KCS [Member] | Senior Notes [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Outstanding principal amount of the Senior Notes | 2,093.5 | |
KCSR [Member] | Senior Notes [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Outstanding principal amount of the Senior Notes | $ 2.9 | $ 40.7 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | $ 598.5 | $ 604.5 | $ 568.5 | $ 562.7 | $ 598 | $ 631.9 | $ 585.8 | $ 603.1 | $ 2,334.2 | $ 2,418.8 | $ 2,577.1 | ||||
Operating expenses | 1,515.7 | 1,615 | 1,768 | ||||||||||||
Operating income | 210.9 | [1] | 199.8 | [1] | 219.9 | [1] | 187.9 | 218.9 | 219.9 | 186.8 | 178.2 | [2] | 818.5 | 803.8 | 809.1 |
Equity in net earnings (losses) of affiliates | 14.6 | 18.3 | 21.1 | ||||||||||||
Interest expense | (97.7) | (81.9) | (72.8) | ||||||||||||
Debt retirement and exchange costs | 0 | (7.6) | (6.6) | ||||||||||||
Foreign exchange loss | (72) | (56.6) | (35.5) | ||||||||||||
Other income (expense), net | (0.7) | (3.4) | (2.2) | ||||||||||||
Income before income taxes | 662.7 | 672.6 | 713.1 | ||||||||||||
Income tax expense | 182.8 | 187.3 | 208.8 | ||||||||||||
Net income | 130.3 | 121 | 120.5 | 108.1 | 140 | 131.9 | 112.2 | 101.2 | 479.9 | 485.3 | 504.3 | ||||
Less: Net income attributable to noncontrolling interest | 1.8 | 1.8 | 1.7 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ 129.6 | $ 120.6 | $ 120.1 | $ 107.8 | $ 139.3 | $ 131.6 | $ 111.8 | $ 100.8 | 478.1 | 483.5 | 502.6 | ||||
Other comprehensive income (loss) | (1.5) | (1.5) | (1.2) | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 476.6 | 482 | 501.4 | ||||||||||||
Condensed Consolidating Financial Information KCS [Member] | Consolidating Adjustments [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | (19.6) | (19.4) | (18.6) | ||||||||||||
Operating expenses | (17.7) | (18.6) | (19.7) | ||||||||||||
Operating income | (1.9) | (0.8) | 1.1 | ||||||||||||
Equity in net earnings (losses) of affiliates | (473.7) | (469.6) | (482.1) | ||||||||||||
Interest expense | 130.3 | 47.7 | 50.2 | ||||||||||||
Debt retirement and exchange costs | 0 | 0 | |||||||||||||
Foreign exchange loss | 0 | 0 | 0 | ||||||||||||
Other income (expense), net | (129) | (47.6) | (51.3) | ||||||||||||
Income before income taxes | (474.3) | (470.3) | (482.1) | ||||||||||||
Income tax expense | (0.9) | 0 | 0 | ||||||||||||
Net income | (473.4) | (470.3) | (482.1) | ||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | (473.4) | (470.3) | (482.1) | ||||||||||||
Other comprehensive income (loss) | 2.5 | 2.2 | 1.7 | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | (470.9) | (468.1) | (480.4) | ||||||||||||
Condensed Consolidating Financial Information KCS [Member] | Parent [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||||
Operating expenses | 4.7 | 4.6 | 7.6 | ||||||||||||
Operating income | (4.7) | (4.6) | (7.6) | ||||||||||||
Equity in net earnings (losses) of affiliates | 468.5 | 464 | 476.7 | ||||||||||||
Interest expense | (81.9) | (4.6) | (0.1) | ||||||||||||
Debt retirement and exchange costs | 0.1 | 0 | |||||||||||||
Foreign exchange loss | 0 | 0 | 0 | ||||||||||||
Other income (expense), net | 104.4 | 45.9 | 50.1 | ||||||||||||
Income before income taxes | 486.3 | 500.8 | 519.1 | ||||||||||||
Income tax expense | 7.1 | 16.5 | 16.5 | ||||||||||||
Net income | 479.2 | 484.3 | 502.6 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 479.2 | 484.3 | 502.6 | ||||||||||||
Other comprehensive income (loss) | (1.5) | (1.5) | (1.2) | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 477.7 | 482.8 | 501.4 | ||||||||||||
Condensed Consolidating Financial Information KCS [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | 1,101.3 | 1,135.9 | 1,242 | ||||||||||||
Operating expenses | 794.7 | 779.7 | 901 | ||||||||||||
Operating income | 306.6 | 356.2 | 341 | ||||||||||||
Equity in net earnings (losses) of affiliates | 7.1 | 7.4 | 7.6 | ||||||||||||
Interest expense | (83) | (84.9) | (83.3) | ||||||||||||
Debt retirement and exchange costs | (5.2) | (2.7) | |||||||||||||
Foreign exchange loss | 0 | 0 | 0 | ||||||||||||
Other income (expense), net | (0.2) | (3.1) | 0.2 | ||||||||||||
Income before income taxes | 230.5 | 270.4 | 262.8 | ||||||||||||
Income tax expense | 87.4 | 98.3 | 99.1 | ||||||||||||
Net income | 143.1 | 172.1 | 163.7 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 1.8 | 1.8 | 1.7 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 141.3 | 170.3 | 162 | ||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0.1 | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 141.3 | 170.3 | 162.1 | ||||||||||||
Condensed Consolidating Financial Information KCS [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | 1,252.5 | 1,302.3 | 1,353.7 | ||||||||||||
Operating expenses | 734 | 849.3 | 879.1 | ||||||||||||
Operating income | 518.5 | 453 | 474.6 | ||||||||||||
Equity in net earnings (losses) of affiliates | 12.7 | 16.5 | 18.9 | ||||||||||||
Interest expense | (63.1) | (40.1) | (39.6) | ||||||||||||
Debt retirement and exchange costs | (2.5) | (3.9) | |||||||||||||
Foreign exchange loss | (72) | (56.6) | (35.5) | ||||||||||||
Other income (expense), net | 24.1 | 1.4 | (1.2) | ||||||||||||
Income before income taxes | 420.2 | 371.7 | 413.3 | ||||||||||||
Income tax expense | 89.2 | 72.5 | 93.2 | ||||||||||||
Net income | 331 | 299.2 | 320.1 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 331 | 299.2 | 320.1 | ||||||||||||
Other comprehensive income (loss) | (2.5) | (2.2) | (1.8) | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 328.5 | 297 | 318.3 | ||||||||||||
Condensed Consolidating Financial Information KCSR [Member] | Consolidating Adjustments [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | (39.3) | (38.1) | (41.1) | ||||||||||||
Operating expenses | (37.4) | (37.3) | (42.1) | ||||||||||||
Operating income | (1.9) | (0.8) | 1 | ||||||||||||
Equity in net earnings (losses) of affiliates | (471.7) | (466.3) | (479.9) | ||||||||||||
Interest expense | 130.3 | 47.7 | 50.2 | ||||||||||||
Debt retirement and exchange costs | 0 | 0 | |||||||||||||
Foreign exchange loss | 0 | 0 | 0 | ||||||||||||
Other income (expense), net | (129) | (47.6) | (51.3) | ||||||||||||
Income before income taxes | (472.3) | (467) | (480) | ||||||||||||
Income tax expense | (0.9) | 0 | 0 | ||||||||||||
Net income | (471.4) | (467) | (480) | ||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | (471.4) | (467) | (480) | ||||||||||||
Other comprehensive income (loss) | 2.5 | 2.2 | 1.7 | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | (468.9) | (464.8) | (478.3) | ||||||||||||
Condensed Consolidating Financial Information KCSR [Member] | Parent [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||||
Operating expenses | 4.7 | 4.6 | 7.6 | ||||||||||||
Operating income | (4.7) | (4.6) | (7.6) | ||||||||||||
Equity in net earnings (losses) of affiliates | 468.5 | 464 | 476.7 | ||||||||||||
Interest expense | (81.9) | (4.6) | (0.1) | ||||||||||||
Debt retirement and exchange costs | 0.1 | 0 | |||||||||||||
Foreign exchange loss | 0 | 0 | 0 | ||||||||||||
Other income (expense), net | 104.4 | 45.9 | 50.1 | ||||||||||||
Income before income taxes | 486.3 | 500.8 | 519.1 | ||||||||||||
Income tax expense | 7.1 | 16.5 | 16.5 | ||||||||||||
Net income | 479.2 | 484.3 | 502.6 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 479.2 | 484.3 | 502.6 | ||||||||||||
Other comprehensive income (loss) | (1.5) | (1.5) | (1.2) | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 477.7 | 482.8 | 501.4 | ||||||||||||
Condensed Consolidating Financial Information KCSR [Member] | KCSR [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | 1,077.3 | 1,112.5 | 1,215.8 | ||||||||||||
Operating expenses | 776.3 | 760.4 | 881.6 | ||||||||||||
Operating income | 301 | 352.1 | 334.2 | ||||||||||||
Equity in net earnings (losses) of affiliates | (0.2) | (1.4) | (0.1) | ||||||||||||
Interest expense | (83) | (84.8) | (83.3) | ||||||||||||
Debt retirement and exchange costs | (5.2) | (2.7) | |||||||||||||
Foreign exchange loss | 0 | 0 | 0 | ||||||||||||
Other income (expense), net | (0.2) | (3.2) | 0.2 | ||||||||||||
Income before income taxes | 217.6 | 257.5 | 248.3 | ||||||||||||
Income tax expense | 84.3 | 95.2 | 94.7 | ||||||||||||
Net income | 133.3 | 162.3 | 153.6 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 133.3 | 162.3 | 153.6 | ||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0.1 | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 133.3 | 162.3 | 153.7 | ||||||||||||
Condensed Consolidating Financial Information KCSR [Member] | Guarantor Subsidiaries [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | 43.7 | 42.1 | 48.7 | ||||||||||||
Operating expenses | 38.1 | 38 | 41.8 | ||||||||||||
Operating income | 5.6 | 4.1 | 6.9 | ||||||||||||
Equity in net earnings (losses) of affiliates | 5.3 | 5.5 | 5.5 | ||||||||||||
Interest expense | 0 | (0.1) | 0 | ||||||||||||
Debt retirement and exchange costs | 0 | 0 | |||||||||||||
Foreign exchange loss | 0 | 0 | 0 | ||||||||||||
Other income (expense), net | 0 | 0.1 | 0 | ||||||||||||
Income before income taxes | 10.9 | 9.6 | 12.4 | ||||||||||||
Income tax expense | 3.1 | 3.1 | 4.4 | ||||||||||||
Net income | 7.8 | 6.5 | 8 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 1.8 | 1.8 | 1.7 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 6 | 4.7 | 6.3 | ||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 6 | 4.7 | 6.3 | ||||||||||||
Condensed Consolidating Financial Information KCSR [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||
Revenues | 1,252.5 | 1,302.3 | 1,353.7 | ||||||||||||
Operating expenses | 734 | 849.3 | 879.1 | ||||||||||||
Operating income | 518.5 | 453 | 474.6 | ||||||||||||
Equity in net earnings (losses) of affiliates | 12.7 | 16.5 | 18.9 | ||||||||||||
Interest expense | (63.1) | (40.1) | (39.6) | ||||||||||||
Debt retirement and exchange costs | (2.5) | (3.9) | |||||||||||||
Foreign exchange loss | (72) | (56.6) | (35.5) | ||||||||||||
Other income (expense), net | 24.1 | 1.4 | (1.2) | ||||||||||||
Income before income taxes | 420.2 | 371.7 | 413.3 | ||||||||||||
Income tax expense | 89.2 | 72.5 | 93.2 | ||||||||||||
Net income | 331 | 299.2 | 320.1 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 331 | 299.2 | 320.1 | ||||||||||||
Other comprehensive income (loss) | (2.5) | (2.2) | (1.8) | ||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ 328.5 | $ 297 | $ 318.3 | ||||||||||||
[1] | During the second, third and fourth quarters of 2016, the Company recognized $34.0 million, $15.6 million and $13.2 million, respectively, of credits available under changes in Mexican law for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in Mexico | ||||||||||||||
[2] | During the first quarter of 2015, the Company recognized pre-tax lease termination costs of $9.6 million, due to the early termination of certain operating leases and the related purchase of equipment. |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Current assets | $ 648 | $ 537 |
Investments | 32.9 | 34.7 |
Investments in consolidated subsidiaries | 0 | 0 |
Property and equipment (including concession assets), net | 8,069.7 | 7,705.4 |
Other assets | 66.9 | 63.9 |
Total assets | 8,817.5 | 8,341 |
Liabilities and equity: | ||
Current liabilities | 744.4 | 757.6 |
Long-term debt | 2,271.5 | 2,045 |
Deferred income taxes | 1,289.3 | 1,191.1 |
Other liabilities | 107.8 | 122.6 |
Stockholders’ equity | 4,089.9 | 3,914.3 |
Noncontrolling interest | 314.6 | 310.4 |
Total liabilities and equity | 8,817.5 | 8,341 |
Condensed Consolidating Financial Information KCS [Member] | Consolidating Adjustments [Member] | ||
Assets: | ||
Current assets | (9.5) | (254.8) |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | (3,991.4) | (3,588) |
Property and equipment (including concession assets), net | (2.7) | (0.8) |
Other assets | (2,244.2) | (1,787.1) |
Total assets | (6,247.8) | (5,630.7) |
Liabilities and equity: | ||
Current liabilities | (10.9) | (254.9) |
Long-term debt | (2,244.2) | (1,787.1) |
Deferred income taxes | (0.9) | 0 |
Other liabilities | 0 | 0 |
Stockholders’ equity | (3,991.8) | (3,588.7) |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | (6,247.8) | (5,630.7) |
Condensed Consolidating Financial Information KCS [Member] | Parent [Member] | ||
Assets: | ||
Current assets | 0.9 | 242.8 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | 3,497.7 | 3,108.4 |
Property and equipment (including concession assets), net | 0 | 0 |
Other assets | 2,015.5 | 1,791.1 |
Total assets | 5,514.1 | 5,142.3 |
Liabilities and equity: | ||
Current liabilities | (501.3) | (566.9) |
Long-term debt | 1,883.1 | 1,759.8 |
Deferred income taxes | 26.9 | 20.9 |
Other liabilities | 4 | 3.8 |
Stockholders’ equity | 4,101.4 | 3,924.7 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 5,514.1 | 5,142.3 |
Condensed Consolidating Financial Information KCS [Member] | Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 275.4 | 189.5 |
Investments | 3.9 | 3.9 |
Investments in consolidated subsidiaries | 493.7 | 479.6 |
Property and equipment (including concession assets), net | 4,203.6 | 3,903.2 |
Other assets | 43 | 40.6 |
Total assets | 5,019.6 | 4,616.8 |
Liabilities and equity: | ||
Current liabilities | 1,004 | 1,066.6 |
Long-term debt | 1,357.7 | 1,260 |
Deferred income taxes | 1,075.3 | 998.4 |
Other liabilities | 86.3 | 94.4 |
Stockholders’ equity | 1,181.7 | 887 |
Noncontrolling interest | 314.6 | 310.4 |
Total liabilities and equity | 5,019.6 | 4,616.8 |
Condensed Consolidating Financial Information KCS [Member] | Non-Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 381.2 | 359.5 |
Investments | 29 | 30.8 |
Investments in consolidated subsidiaries | 0 | 0 |
Property and equipment (including concession assets), net | 3,868.8 | 3,803 |
Other assets | 252.6 | 19.3 |
Total assets | 4,531.6 | 4,212.6 |
Liabilities and equity: | ||
Current liabilities | 252.6 | 512.8 |
Long-term debt | 1,274.9 | 812.3 |
Deferred income taxes | 188 | 171.8 |
Other liabilities | 17.5 | 24.4 |
Stockholders’ equity | 2,798.6 | 2,691.3 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 4,531.6 | 4,212.6 |
Condensed Consolidating Financial Information KCSR [Member] | Consolidating Adjustments [Member] | ||
Assets: | ||
Current assets | (10.5) | (255.7) |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | (3,979.6) | (3,578.4) |
Property and equipment (including concession assets), net | (2.7) | (0.8) |
Other assets | (2,244.2) | (1,787) |
Total assets | (6,237) | (5,621.9) |
Liabilities and equity: | ||
Current liabilities | (11.8) | (255.7) |
Long-term debt | (2,244.3) | (1,787.1) |
Deferred income taxes | (0.9) | 0 |
Other liabilities | 0 | 0 |
Stockholders’ equity | (3,980) | (3,579.1) |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | (6,237) | (5,621.9) |
Condensed Consolidating Financial Information KCSR [Member] | Parent [Member] | ||
Assets: | ||
Current assets | 0.9 | 242.8 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | 3,497.7 | 3,108.4 |
Property and equipment (including concession assets), net | 0 | 0 |
Other assets | 2,015.5 | 1,791.1 |
Total assets | 5,514.1 | 5,142.3 |
Liabilities and equity: | ||
Current liabilities | (501.3) | (566.9) |
Long-term debt | 1,883.1 | 1,759.8 |
Deferred income taxes | 26.9 | 20.9 |
Other liabilities | 4 | 3.8 |
Stockholders’ equity | 4,101.4 | 3,924.7 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 5,514.1 | 5,142.3 |
Condensed Consolidating Financial Information KCSR [Member] | KCSR [Member] | ||
Assets: | ||
Current assets | 271.8 | 182.7 |
Investments | 3.9 | 3.9 |
Investments in consolidated subsidiaries | (9.8) | (7.6) |
Property and equipment (including concession assets), net | 4,024.5 | 3,716.4 |
Other assets | 43 | 40.5 |
Total assets | 4,333.4 | 3,935.9 |
Liabilities and equity: | ||
Current liabilities | 913.2 | 959.6 |
Long-term debt | 1,357.7 | 1,259.9 |
Deferred income taxes | 937.7 | 863.7 |
Other liabilities | 86.2 | 94.2 |
Stockholders’ equity | 1,038.6 | 758.5 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 4,333.4 | 3,935.9 |
Condensed Consolidating Financial Information KCSR [Member] | Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 4.6 | 7.7 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | 491.7 | 477.6 |
Property and equipment (including concession assets), net | 179.1 | 186.8 |
Other assets | 0 | 0 |
Total assets | 675.4 | 672.1 |
Liabilities and equity: | ||
Current liabilities | 91.7 | 107.8 |
Long-term debt | 0.1 | 0.1 |
Deferred income taxes | 137.6 | 134.7 |
Other liabilities | 0.1 | 0.2 |
Stockholders’ equity | 131.3 | 118.9 |
Noncontrolling interest | 314.6 | 310.4 |
Total liabilities and equity | 675.4 | 672.1 |
Condensed Consolidating Financial Information KCSR [Member] | Non-Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 381.2 | 359.5 |
Investments | 29 | 30.8 |
Investments in consolidated subsidiaries | 0 | 0 |
Property and equipment (including concession assets), net | 3,868.8 | 3,803 |
Other assets | 252.6 | 19.3 |
Total assets | 4,531.6 | 4,212.6 |
Liabilities and equity: | ||
Current liabilities | 252.6 | 512.8 |
Long-term debt | 1,274.9 | 812.3 |
Deferred income taxes | 188 | 171.8 |
Other liabilities | 17.5 | 24.4 |
Stockholders’ equity | 2,798.6 | 2,691.3 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | $ 4,531.6 | $ 4,212.6 |
Condensed Consolidating State89
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net cash provided | $ 913.3 | $ 909.3 | $ 906 |
Investing activities: | |||
Capital expenditures | (563.9) | (688) | (668.2) |
Purchase or replacement of equipment under operating leases | (26.6) | (144.2) | (302.1) |
Property investments in MSLLC | (33.1) | (17.4) | (26.7) |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | |
Contributions to consolidated affiliates | 0 | 0 | |
Other investing activities | (4.6) | (23.4) | 14.1 |
Net cash used for investing activities | (628.2) | (873) | (982.9) |
Financing activities: | |||
Proceeds from short-term borrowings | 8,698.7 | 10,866.2 | 15,368.8 |
Repayment of short-term borrowings | (8,597.9) | (11,237.3) | (14,920.2) |
Proceeds from issuance of long-term debt | 248.7 | 623.7 | 175 |
Repayment of long-term debt | (276.4) | (149.8) | (508) |
Dividends paid | (142.8) | (140.1) | (116.6) |
Shares repurchased | (185.4) | (194.2) | 0 |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 0 | 0 | |
Other financing activities | 4 | (16.2) | (3.6) |
Net cash used for financing activities | (251.1) | (247.7) | (4.6) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 34 | (211.4) | (81.5) |
At beginning of year | 136.6 | 348 | 429.5 |
At end of year | 170.6 | 136.6 | 348 |
Condensed Consolidating Financial Information KCS [Member] | Consolidating Adjustments [Member] | |||
Operating activities: | |||
Net cash provided | (233.8) | (18.6) | (314.3) |
Investing activities: | |||
Capital expenditures | 0 | 0 | 1.5 |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | (9,067.7) | (293.9) | (70.4) |
Loans to affiliates | 9,123.4 | 80 | |
Contributions to consolidated affiliates | 159.9 | 299.6 | |
Other investing activities | 1.9 | 2.3 | 0.7 |
Net cash used for investing activities | 217.5 | (211.6) | 231.4 |
Financing activities: | |||
Proceeds from short-term borrowings | (243.5) | 0 | 0 |
Repayment of short-term borrowings | 243.5 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | (80) | 0 |
Repayment of long-term debt | 0 | 0 | 0 |
Dividends paid | 230.2 | 17.8 | 314.3 |
Shares repurchased | 0 | 0 | |
Proceeds from loans from affiliates | (8,879.9) | ||
Repayment of loans from affiliates | 8,824.2 | 293.9 | 70.4 |
Contributions from affiliates | (159.9) | (301.8) | |
Other financing activities | 1.7 | (1.5) | 0 |
Net cash used for financing activities | 16.3 | 230.2 | 82.9 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 0 | 0 | 0 |
At beginning of year | 0 | 0 | 0 |
At end of year | 0 | 0 | 0 |
Condensed Consolidating Financial Information KCS [Member] | Parent [Member] | |||
Operating activities: | |||
Net cash provided | 428.4 | 45.3 | 345.3 |
Investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 9,067.7 | 293.9 | 70.4 |
Loans to affiliates | (9,123.4) | (80) | |
Contributions to consolidated affiliates | (153.4) | (299.6) | |
Other investing activities | 0 | (0.8) | (1) |
Net cash used for investing activities | (209.1) | 213.1 | (230.2) |
Financing activities: | |||
Proceeds from short-term borrowings | 8,698.7 | 80 | 0 |
Repayment of short-term borrowings | (8,597.9) | 0 | 0 |
Proceeds from issuance of long-term debt | 248.7 | 0 | 0 |
Repayment of long-term debt | (244.8) | 0 | 0 |
Dividends paid | (142.8) | (140.1) | (116.6) |
Shares repurchased | (185.4) | (194.2) | |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 0 | 0 | |
Other financing activities | 4.2 | (4.1) | 1.3 |
Net cash used for financing activities | (219.3) | (258.4) | (115.3) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 0 | 0 | (0.2) |
At beginning of year | 0.2 | 0.2 | 0.4 |
At end of year | 0.2 | 0.2 | 0.2 |
Condensed Consolidating Financial Information KCS [Member] | Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided | 236 | 356.6 | 379.1 |
Investing activities: | |||
Capital expenditures | (373.1) | (382.8) | (479.5) |
Purchase or replacement of equipment under operating leases | (26.6) | (82.8) | (203.6) |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | |
Contributions to consolidated affiliates | (6.5) | 0 | |
Other investing activities | (12.6) | (31.4) | 8.6 |
Net cash used for investing activities | (418.8) | (497) | (674.5) |
Financing activities: | |||
Proceeds from short-term borrowings | 243.5 | 10,786.2 | 15,068.8 |
Repayment of short-term borrowings | (243.5) | (10,937.3) | (14,920.2) |
Proceeds from issuance of long-term debt | 0 | 663.7 | 175 |
Repayment of long-term debt | (3.5) | (88.4) | (423.6) |
Dividends paid | 0 | 0 | 0 |
Shares repurchased | 0 | 0 | |
Proceeds from loans from affiliates | 8,879.9 | ||
Repayment of loans from affiliates | (8,824.2) | (293.9) | (70.4) |
Contributions from affiliates | 153.1 | 300.4 | |
Other financing activities | (0.1) | (9.2) | (1.4) |
Net cash used for financing activities | 205.2 | 121.1 | 128.6 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 22.4 | (19.3) | (166.8) |
At beginning of year | 10.2 | 29.5 | 196.3 |
At end of year | 32.6 | 10.2 | 29.5 |
Condensed Consolidating Financial Information KCS [Member] | Non-Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided | 482.7 | 526 | 495.9 |
Investing activities: | |||
Capital expenditures | (190.8) | (305.2) | (190.2) |
Purchase or replacement of equipment under operating leases | 0 | (61.4) | (98.5) |
Property investments in MSLLC | (33.1) | (17.4) | (26.7) |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | |
Contributions to consolidated affiliates | 0 | 0 | |
Other investing activities | 6.1 | 6.5 | 5.8 |
Net cash used for investing activities | (217.8) | (377.5) | (309.6) |
Financing activities: | |||
Proceeds from short-term borrowings | 0 | 0 | 300 |
Repayment of short-term borrowings | 0 | (300) | 0 |
Proceeds from issuance of long-term debt | 0 | 40 | 0 |
Repayment of long-term debt | (28.1) | (61.4) | (84.4) |
Dividends paid | (230.2) | (17.8) | (314.3) |
Shares repurchased | 0 | 0 | |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 6.8 | 1.4 | |
Other financing activities | (1.8) | (1.4) | (3.5) |
Net cash used for financing activities | (253.3) | (340.6) | (100.8) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 11.6 | (192.1) | 85.5 |
At beginning of year | 126.2 | 318.3 | 232.8 |
At end of year | 137.8 | 126.2 | 318.3 |
Condensed Consolidating Financial Information KCSR [Member] | Consolidating Adjustments [Member] | |||
Operating activities: | |||
Net cash provided | (233.8) | (18.6) | (314.3) |
Investing activities: | |||
Capital expenditures | 0 | 0 | 1.5 |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | (9,067.7) | (293.9) | (70.4) |
Loans to affiliates | 9,123.4 | 80 | |
Contributions to consolidated affiliates | 159.9 | 299.6 | |
Other investing activities | 1.9 | 2.3 | 0.7 |
Net cash used for investing activities | 217.5 | (211.6) | 231.4 |
Financing activities: | |||
Proceeds from short-term borrowings | (243.5) | 0 | 0 |
Repayment of short-term borrowings | 243.5 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | (80) | 0 |
Repayment of long-term debt | 0 | 0 | 0 |
Dividends paid | 230.2 | 17.8 | 314.3 |
Shares repurchased | 0 | 0 | |
Proceeds from loans from affiliates | (8,879.9) | ||
Repayment of loans from affiliates | 8,824.2 | 293.9 | 70.4 |
Contributions from affiliates | (159.9) | (301.8) | |
Other financing activities | 1.7 | (1.5) | 0 |
Net cash used for financing activities | 16.3 | 230.2 | 82.9 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 0 | 0 | 0 |
At beginning of year | 0 | 0 | 0 |
At end of year | 0 | 0 | 0 |
Condensed Consolidating Financial Information KCSR [Member] | Parent [Member] | |||
Operating activities: | |||
Net cash provided | 428.4 | 45.3 | 345.3 |
Investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 9,067.7 | 293.9 | 70.4 |
Loans to affiliates | (9,123.4) | (80) | |
Contributions to consolidated affiliates | (153.4) | (299.6) | |
Other investing activities | 0 | (0.8) | (1) |
Net cash used for investing activities | (209.1) | 213.1 | (230.2) |
Financing activities: | |||
Proceeds from short-term borrowings | 8,698.7 | 80 | 0 |
Repayment of short-term borrowings | (8,597.9) | 0 | 0 |
Proceeds from issuance of long-term debt | 248.7 | 0 | 0 |
Repayment of long-term debt | (244.8) | 0 | 0 |
Dividends paid | (142.8) | (140.1) | (116.6) |
Shares repurchased | (185.4) | (194.2) | |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 0 | 0 | |
Other financing activities | 4.2 | (4.1) | 1.3 |
Net cash used for financing activities | (219.3) | (258.4) | (115.3) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 0 | 0 | (0.2) |
At beginning of year | 0.2 | 0.2 | 0.4 |
At end of year | 0.2 | 0.2 | 0.2 |
Condensed Consolidating Financial Information KCSR [Member] | KCSR [Member] | |||
Operating activities: | |||
Net cash provided | 235.4 | 355.6 | 377 |
Investing activities: | |||
Capital expenditures | (372.5) | (381.5) | (477.8) |
Purchase or replacement of equipment under operating leases | (26.6) | (82.8) | (203.6) |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | |
Contributions to consolidated affiliates | 0 | 0 | |
Other investing activities | (12.6) | (30.7) | 9.7 |
Net cash used for investing activities | (411.7) | (495) | (671.7) |
Financing activities: | |||
Proceeds from short-term borrowings | 243.5 | 10,786.2 | 15,068.8 |
Repayment of short-term borrowings | (243.5) | (10,937.3) | (14,920.2) |
Proceeds from issuance of long-term debt | 0 | 663.7 | 175 |
Repayment of long-term debt | (3.4) | (88.3) | (423.5) |
Dividends paid | 0 | 0 | 0 |
Shares repurchased | 0 | 0 | |
Proceeds from loans from affiliates | 8,879.9 | ||
Repayment of loans from affiliates | (8,824.2) | (293.9) | (70.4) |
Contributions from affiliates | 146.6 | 299.3 | |
Other financing activities | (0.1) | (9.9) | (1.4) |
Net cash used for financing activities | 198.8 | 120.5 | 127.6 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 22.5 | (18.9) | (167.1) |
At beginning of year | 10.1 | 29 | 196.1 |
At end of year | 32.6 | 10.1 | 29 |
Condensed Consolidating Financial Information KCSR [Member] | Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided | 0.6 | 1 | 2.1 |
Investing activities: | |||
Capital expenditures | (0.6) | (1.3) | (1.7) |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | |
Contributions to consolidated affiliates | (6.5) | 0 | |
Other investing activities | 0 | (0.7) | (1.1) |
Net cash used for investing activities | (7.1) | (2) | (2.8) |
Financing activities: | |||
Proceeds from short-term borrowings | 0 | 0 | 0 |
Repayment of short-term borrowings | 0 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | (0.1) | (0.1) | (0.1) |
Dividends paid | 0 | 0 | 0 |
Shares repurchased | 0 | 0 | |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 6.5 | 1.1 | |
Other financing activities | 0 | 0.7 | 0 |
Net cash used for financing activities | 6.4 | 0.6 | 1 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | (0.1) | (0.4) | 0.3 |
At beginning of year | 0.1 | 0.5 | 0.2 |
At end of year | 0 | 0.1 | 0.5 |
Condensed Consolidating Financial Information KCSR [Member] | Non-Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided | 482.7 | 526 | 495.9 |
Investing activities: | |||
Capital expenditures | (190.8) | (305.2) | (190.2) |
Purchase or replacement of equipment under operating leases | 0 | (61.4) | (98.5) |
Property investments in MSLLC | (33.1) | (17.4) | (26.7) |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | |
Contributions to consolidated affiliates | 0 | 0 | |
Other investing activities | 6.1 | 6.5 | 5.8 |
Net cash used for investing activities | (217.8) | (377.5) | (309.6) |
Financing activities: | |||
Proceeds from short-term borrowings | 0 | 0 | 300 |
Repayment of short-term borrowings | 0 | (300) | 0 |
Proceeds from issuance of long-term debt | 0 | 40 | 0 |
Repayment of long-term debt | (28.1) | (61.4) | (84.4) |
Dividends paid | (230.2) | (17.8) | (314.3) |
Shares repurchased | 0 | 0 | |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 6.8 | 1.4 | |
Other financing activities | (1.8) | (1.4) | (3.5) |
Net cash used for financing activities | (253.3) | (340.6) | (100.8) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 11.6 | (192.1) | 85.5 |
At beginning of year | 126.2 | 318.3 | 232.8 |
At end of year | $ 137.8 | $ 126.2 | $ 318.3 |