Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 17, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Amendment Flag | false | ||
Entity Central Index Key | 0000054480 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-4717 | ||
Entity Registrant Name | KANSAS CITY SOUTHERN | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 44-0663509 | ||
Entity Address, Address Line One | 427 West 12th Street | ||
Entity Address, City or Town | Kansas City | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 64105 | ||
City Area Code | 816 | ||
Local Phone Number | 983.1303 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12,110 | ||
Entity Common Stock, Shares Outstanding | 96,150,940 | ||
Documents Incorporated by Reference | Kansas City Southern’s Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders which will be filed no later than 120 days after December 31, 2019, is incorporated by reference in Part III. | ||
$25 Par Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock, Par Value $25 Per Share, 4%, Noncumulative | ||
Trading Symbol | KSU | ||
Security Exchange Name | NYSE | ||
$.01 Par Common Stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.01 Per Share Par Value | ||
Trading Symbol | KSU | ||
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 2,866 | $ 2,714 | $ 2,582.9 |
Operating expenses: | |||
Compensation and benefits | 529.1 | 495.7 | 493.8 |
Purchased services | 219.2 | 200.7 | 193.7 |
Fuel | 340.4 | 348.2 | 316.1 |
Mexican fuel excise tax credit | 0 | (37.7) | (44.1) |
Equipment costs | 108.6 | 126.1 | 129.2 |
Depreciation and amortization | 350.7 | 346.7 | 320.9 |
Materials and other | 262.9 | 265.9 | 251.7 |
Restructuring charges | 168.8 | 0 | 0 |
Gain on insurance recoveries related to hurricane damage | 0 | (17.9) | 0 |
Total operating expenses | 1,979.7 | 1,727.7 | 1,661.3 |
Operating income | 886.3 | 986.3 | 921.6 |
Equity in net earnings of affiliates | 1 | 2.6 | 11.5 |
Interest expense | (115.9) | (110) | (100.2) |
Debt retirement costs | (1.1) | (2.2) | 0 |
Foreign exchange gain | 17.1 | 7.8 | 41.7 |
Other income (expense), net | 1 | 2.4 | (0.3) |
Income before income taxes | 788.4 | 886.9 | 874.3 |
Income tax expense (benefit) | 247.6 | 257.5 | (89.6) |
Net income | 540.8 | 629.4 | 963.9 |
Less: Net income attributable to noncontrolling interest | 1.9 | 2 | 1.9 |
Net income attributable to Kansas City Southern and subsidiaries | 538.9 | 627.4 | 962 |
Preferred stock dividends | 0.2 | 0.2 | 0.2 |
Net income available to common stockholders | $ 538.7 | $ 627.2 | $ 961.8 |
Earnings per share: | |||
Basic earnings per share | $ 5.42 | $ 6.16 | $ 9.18 |
Diluted earnings per share | $ 5.40 | $ 6.13 | $ 9.16 |
Average shares outstanding (in thousands): | |||
Basic | 99,316 | 101,852 | 104,728 |
Potentially dilutive common shares | 431 | 418 | 312 |
Diluted | 99,747 | 102,270 | 105,040 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 540.8 | $ 629.4 | $ 963.9 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on interest rate derivative instruments during the period, net of tax of $(4.9) million, $1.0 million and $(2.2) million | (18.9) | 2.6 | (3.4) |
Reclassification adjustment from cash flow hedges included in net income, net of tax of less than $0.1 million | 0.2 | 0 | 0 |
Foreign currency translation adjustments, net of tax of $3.8 million for 2017 | 0.5 | 0.1 | (3.3) |
Other comprehensive income (loss) | (18.2) | 2.7 | (6.7) |
Comprehensive income | 522.6 | 632.1 | 957.2 |
Less: comprehensive income attributable to noncontrolling interest | 1.9 | 2 | 1.9 |
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ 520.7 | $ 630.1 | $ 955.3 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Tax effect on unrealized gain (loss) on interest rate derivative instruments during the period | $ (4.9) | $ 1 | $ (2.2) |
Tax effect on reclassification adjustment from cash flow hedges included in net income | $ 0 | ||
Tax effect on foreign currency translation adjustments | $ 3.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 148.8 | $ 100.5 |
Accounts receivable, net | 274.2 | 301.2 |
Materials and supplies | 150.6 | 160.3 |
Other current assets | 155 | 73.4 |
Total current assets | 728.6 | 635.4 |
Operating lease right-of-use assets | 158.4 | 0 |
Investments | 47.6 | 44.9 |
Property and equipment (including concession assets), net | 8,806.3 | 8,691.1 |
Other assets | 45.9 | 98.4 |
Total assets | 9,786.8 | 9,469.8 |
Current liabilities: | ||
Long-term debt due within one year | 18 | 10.1 |
Accounts payable and accrued liabilities | 473.3 | 436.9 |
Total current liabilities | 491.3 | 447 |
Long-term operating lease liabilities | 85.7 | 0 |
Long-term debt | 3,228 | 2,679.3 |
Deferred income taxes | 1,128 | 1,079.9 |
Other noncurrent liabilities and deferred credits | 107.9 | 130.9 |
Total liabilities | 5,040.9 | 4,337.1 |
Stockholders’ equity: | ||
$.01 par, common stock, 400,000,000 shares authorized, 123,352,185 shares issued; 96,115,669 and 100,896,678 shares outstanding at December 31, 2019 and 2018, respectively | 1 | 1 |
Additional paid-in capital | 843.7 | 946.6 |
Retained earnings | 3,601.3 | 3,870.6 |
Accumulated other comprehensive loss | (29.1) | (10.9) |
Total stockholders’ equity | 4,422.5 | 4,813 |
Noncontrolling interest | 323.4 | 319.7 |
Total equity | 4,745.9 | 5,132.7 |
Total liabilities and equity | 9,786.8 | 9,469.8 |
$25 Par Preferred Stock [Member] | ||
Stockholders’ equity: | ||
$25 par, 4% noncumulative, preferred stock, 840,000 shares authorized, 649,736 shares issued; 222,625 and 228,395 shares outstanding at December 31, 2019 and 2018, respectively | $ 5.6 | $ 5.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 96,115,669 | 100,896,678 | |
$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 | 222,625 | 228,395 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating activities: | |||
Net income | $ 540.8 | $ 629.4 | $ 963.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 350.7 | 346.7 | 320.9 |
Deferred income taxes | 53.1 | 91.7 | (301.3) |
Equity in net earnings of affiliates | (1) | (2.6) | (11.5) |
Share-based compensation | 23.1 | 20.4 | 18.2 |
Distributions from affiliates | 7 | 5.5 | 12.5 |
Settlement of foreign currency derivative instruments | 11.9 | 13.9 | (10.8) |
Gain on foreign currency derivative instruments | (14.1) | (6.3) | (38.2) |
Restructuring charges | 168.8 | 0 | 0 |
Cash payments for restructuring charges | (6.3) | 0 | 0 |
Settlement of treasury lock agreements | (25.8) | 0 | 0 |
Gain on insurance recoveries related to hurricane damage | 0 | (17.9) | 0 |
Insurance proceeds related to hurricane damage | 0 | 17.9 | 0 |
Deemed mandatory repatriation tax | 0 | (18.7) | 41.3 |
Changes in working capital items: | |||
Accounts receivable | 36.4 | (68.4) | (46.7) |
Materials and supplies | 0.5 | (4.5) | 1.4 |
Other current assets | (56.8) | (41.1) | (68.6) |
Accounts payable and accrued liabilities | 10.5 | (18.2) | 160.4 |
Other, net | 4.7 | (2.1) | (13.1) |
Net cash provided by operating activities | 1,103.5 | 945.7 | 1,028.4 |
Investing activities: | |||
Capital expenditures | (587.2) | (520.3) | (585.4) |
Purchase or replacement of assets under operating leases | (39) | (98.9) | (42.6) |
Property investments in MSLLC | (27.5) | (26.1) | (26) |
Investments in and advances to affiliates | (36.7) | (19.2) | (20.4) |
Insurance proceeds related to hurricane damage | 0 | 7.6 | 0 |
Proceeds from disposal of property | 22.1 | 8.7 | 8.8 |
Other, net | (8) | (3.7) | (15.5) |
Net cash provided (used) | (676.3) | (651.9) | (681.1) |
Financing activities: | |||
Net short-term borrowings | 0 | (348.1) | 159 |
Proceeds from issuance of long-term debt | 847.5 | 499.4 | 0 |
Repayment of long-term debt | (285) | (81.5) | (25.4) |
Dividends paid | (144.3) | (147.5) | (142.5) |
Shares repurchased | (792.5) | (243.5) | (375.6) |
Debt issuance and retirement costs paid | (11.6) | (8) | 0 |
Proceeds from employee stock plans | 7 | 1.8 | 0.7 |
Net cash provided (used) | (378.9) | (327.4) | (383.8) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 48.3 | (33.6) | (36.5) |
At beginning of year | 100.5 | 134.1 | 170.6 |
At end of year | 148.8 | 100.5 | 134.1 |
Non-cash investing and financing activities: | |||
Capital expenditures and purchase or replacement of assets under operating lease accrued but not yet paid at end of year | 24 | 26.9 | 34.9 |
Other investing activities accrued but not yet paid at the end of the year | 31.2 | 53.8 | 56.7 |
Non-cash asset acquisitions | 0.5 | 0.7 | 0.1 |
Dividends accrued but not yet paid at end of year | 39 | 36.6 | 37.2 |
Cash payments: | |||
Interest paid, net of amounts capitalized | 110.5 | 105 | 97.9 |
Income tax payments, net of refunds | $ 170.5 | $ 221 | $ 51.1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | $25 Par Preferred Stock [Member] | $25 Par Preferred Stock [Member] | $.01 Par Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]$25 Par Preferred Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Balance at Dec. 31, 2016 | $ 4,404.5 | $ 6.1 | $ 1.1 | $ 954.8 | $ 3,134.1 | $ (6.2) | $ 314.6 | ||
Cumulative-effect adjustment due to adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting at Dec. 31, 2016 | 2.5 | 1.3 | 1.2 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 963.9 | 962 | 1.9 | ||||||
Other comprehensive income (loss) | (6.7) | (6.7) | |||||||
Dividends on common stock | (144.2) | (144.2) | |||||||
Dividends on preferred stock | $ (0.2) | $ (0.2) | |||||||
Share repurchases | (375.6) | (0.1) | (34) | (341.5) | |||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 3 | 3 | |||||||
Share-based compensation | 18.2 | 18.2 | |||||||
Balance at Dec. 31, 2017 | 4,865.4 | 6.1 | 1 | 943.3 | 3,611.4 | (12.9) | 316.5 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Reclassification due to adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | 0 | 0.7 | (0.7) | ||||||
Net income | 629.4 | 627.4 | 2 | ||||||
Other comprehensive income (loss) | 2.7 | 2.7 | |||||||
Contributions from noncontrolling interest | 1.2 | 1.2 | |||||||
Dividends on common stock | (146.7) | (146.7) | |||||||
Dividends on preferred stock | (0.2) | (0.2) | |||||||
Share repurchases | (243.5) | (0.4) | 0 | (21.1) | (222) | ||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 4 | 4 | |||||||
Share-based compensation | 20.4 | 20.4 | |||||||
Balance at Dec. 31, 2018 | 5,132.7 | 5.7 | 1 | 946.6 | 3,870.6 | (10.9) | 319.7 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 540.8 | 538.9 | 1.9 | ||||||
Other comprehensive income (loss) | (18.2) | (18.2) | |||||||
Contributions from noncontrolling interest | 1.8 | 1.8 | |||||||
Dividends on common stock | (146.5) | (146.5) | |||||||
Dividends on preferred stock | (0.2) | $ (0.2) | |||||||
Share repurchases | (710) | $ (0.1) | (0.1) | 0 | (48.4) | (661.5) | |||
Forward contract for accelerated share repurchases | (82.5) | (82.5) | |||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 4.1 | 4.1 | |||||||
Share-based compensation | 23.9 | 23.9 | |||||||
Balance at Dec. 31, 2019 | $ 4,745.9 | $ 5.6 | $ 1 | $ 843.7 | $ 3,601.3 | $ (29.1) | $ 323.4 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock, Dividends Per Share | $ 1.48 | $ 1.44 | $ 1.38 |
$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, 2019 | |
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 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; and • 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; • TFCM, S. de R.L. de C.V. (“TCM”), a forty-five percent -owned unconsolidated affiliate that operates a bulk liquid terminal in San Luis Potosí, Mexico; • 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 (the “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 additional periods of up to 50 years under 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 70% 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”), and which remains in effect during the period of the Concession, for the purpose of regulating the relationship between the parties. Approximately 75% of KCSM Servicios employees are covered by this labor agreement. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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. During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases, also known as Accounting Standard Codification (“ASC”) Topic 842, which requires lessees to recognize for all operating leases a right-of-use asset and a lease obligation in the consolidated balance sheet. Expenses are recognized in the consolidated statement of income in a manner similar to previous accounting guidance. Lessor accounting under the new standard is substantially unchanged and is immaterial to the Company. The Company adopted the accounting standard using a prospective transition approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented, with certain practical expedients available to ease the burden of adoption. The Company elected the following practical expedients upon adoption: not to reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, not to reassess initial direct costs for any existing leases, not to separately identify lease and nonlease components (i.e. maintenance costs) except for fleet vehicles and real estate, and not to evaluate historical land easements under the new guidance. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASC 842 to long-term leases (leases greater than 1 year). Adoption of the new standard resulted in $175.2 million of additional right-of-use lease assets and lease liabilities as of January 1, 2019. The new standard did not have a significant impact on the consolidated statements of income. See Note 5 , Leases for additional information. 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 and income taxes. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. Revenue Recognition. The primary performance obligation for the Company is to move customers’ freight from an origin to a destination. A performance obligation is created when a customer under a transportation contract or public tariff submits a bill of lading for the transport of goods. The Company recognizes revenue proportionally as a shipment moves from origin to destination, using the distance shipped to measure progress, as the customer simultaneously receives and consumes the benefit over time. Related expenses are recognized as incurred. Revenue associated with in-transit shipments at period end is recognized based on the distance shipped as of the balance sheet date. Payment is received at the time or shortly after the performance obligation is satisfied. The transaction price is generally in the form of a fixed fee determined at the inception of the transportation contract or the inception of the bill of lading. Certain customer agreements have variable consideration that are based on milestone achievements in the form of rebates, discounts or incentives. The Company makes judgments to determine whether the variable consideration is probable of occurring and should be included in the estimated transaction price at the beginning of the period to apply a more consistent rate throughout the year based on an analysis of historical experience with the customer, forecasted shipments and other economic indicators. The Company adjusts the estimate on a quarterly basis. Other revenues, including switching, storage, and demurrage are distinct services and are recognized as services are performed or as contractual obligations are fulfilled. The consideration for other revenue is allocated between the separate services based upon the stand-alone transaction price. 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, 2019 and 2018 , the allowance for doubtful accounts was $7.0 million and $4.1 million , respectively. For the years ended December 31, 2019 , 2018 and 2017 , bad debt expense was $0.4 million , $0.3 million and $1.6 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. Property and Equipment (including Concession Assets). KCS capitalizes costs for self-constructed additions and improvements to property including direct labor and material, indirect 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 performed depreciation studies for KCSR and KCSM in 2019. 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, is significant in amount, and varies significantly from the retirement profile identified through the depreciation studies. 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. Other than the abnormal impairments related to the implementation of Precision Scheduled Railroading (“PSR”), management did not identify any indicators of impairment for the years ended December 31, 2019 and 2018 . Leases. The Company leases transportation equipment, as well as office and other operating facilities, under various finance and operating leases. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the implicit rate is not readily determinable in most of the Company’s lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of approximately 1 year to 10 years, which may include the option to extend the lease when it is reasonably certain the Company will exercise that option. The Company does not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants. Additionally, short-term leases and leases with variable lease costs are immaterial, and the Company does not have any sublease arrangements. 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, 2019 and 2018 , 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 reporting units’ fair values. The Company performed its annual impairment review for goodwill as of November 30, 2019 and 2018 , and concluded there was no impairment. Investments and Impairment. The Company reviews equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable in accordance with generally accepted accounting principles. This determination requires significant judgment. In making this judgment, the Company considers available quantitative and qualitative evidence in evaluating potential impairment of these investments. If it is determined that an indicator of impairment exists, the Company assesses whether the carrying value exceeds the fair value of the asset. If the carrying value of the investment exceeds its fair value, the Company will evaluate, among other factors, general market conditions, the duration and extent to which the carrying value is greater than the fair value, and KCS’s intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge will be recorded and a new carrying basis in the investment will be established. No impairment charges were recognized during the years ended December 31, 2019 , 2018 and 2017. 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 recognizes liabilities for remediation and restoration costs when the Company’s obligation is probable and the costs can be reasonably estimated. Costs of future expenditures for environmental remediation and restoration 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 recognized 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 and is recognized over the requisite service period in which the award is earned. Forfeitures are recognized as they occur. 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 recognized under the asset and 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. 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 shares held in treasury is allocated between additional paid-in capital and retained earnings. New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses.” |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges The Company is implementing certain principles of PSR, which focus on providing reliable customer service, facilitating growth, improving asset utilization, and improving the cost profile of the Company. As a result of the PSR initiatives, management approved four separate restructuring plans during 2019, which resulted in restructuring charges of $168.8 million . Management approved the fourth restructuring plan during the fourth quarter of 2019, which coincided with the preparation of the Company’s annual financial statements, and recognized restructuring charges of $38.3 million in the consolidated statements of income. Expenses related to these initiatives are shown in the following table ( in millions ): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year-to-Date Restructuring charges: Asset impairments $ 62.5 $ 50.7 $ 8.6 $ 36.0 $ 157.8 Workforce reduction 3.2 — 3.4 0.4 $ 7.0 Contract restructuring 1.8 0.3 — 1.9 $ 4.0 Total restructuring charges $ 67.5 $ 51.0 $ 12.0 $ 38.3 $ 168.8 Asset Impairments. The Company committed to plans to dispose of certain locomotives and freight cars to increase operational fluidity, reduce maintenance expense, and improve labor and fuel efficiency. Accordingly, the Company performed an impairment analysis to adjust the carrying amount of each asset to the lower of its depreciated book value or its estimated fair value, less costs to dispose, and stopped recognizing depreciation expense. During 2019, the Company sold 66 of 127 locomotives and 1,467 of 2,011 freight cars identified under the plans. The carrying amount of the remaining assets held for sale of $11.3 million is classified as other current assets within the consolidated balance sheets at December 31, 2019. Additionally, the Company wrote off parts inventory associated with the locomotive and freight car models that were disposed. Workforce Reduction. The Company recognized severance costs associated with PSR initiatives focused on the cost profile of the Company and improving asset utilization by reducing the active locomotive fleet and rail cars online. Contract Restructuring. |
Mexican Fuel Excise Tax Credit
Mexican Fuel Excise Tax Credit | 12 Months Ended |
Dec. 31, 2019 | |
Mexican Fuel Excise Tax Credit [Abstract] | |
Mexican Fuel Excise Tax Credit | Mexican Fuel Excise Tax Credit Fuel purchases in Mexico are subject to an excise tax that is included in the price of fuel. Through April 29, 2019, the Company was eligible for a credit for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in Mexico. For years 2018 and 2017, the Mexican fuel excise tax credit (“IEPS credit”) was utilized and realized through the offset of the total annual Mexico income tax liability and income tax withholding payment obligations of KCSM, with no carryforward to future periods and recognized as a benefit in operating expenses on the consolidated statements of income. In December 2018, the Mexican government enacted changes in the tax law effective January 1, 2019 (“Mexico 2019 Tax Reform”), which, among other things, for 2019 eliminated the option to monetize the IEPS credit by offsetting income tax withholding payment obligations. As a result, the Company is allowed to offset the 2019 IEPS credit only against its Mexico corporate income tax liability on the 2019 annual income tax return. The elimination of the option to apply the IEPS credit to income tax withholding payment obligations required the Company to recognize the IEPS credit as a reduction of income tax expense rather than a reduction of operating expenses for 2019. On April 29, 2019, the Servicio de Administración Tributaria (the “SAT”), the Mexican equivalent of the IRS, published the Miscellaneous Fiscal Resolution for 2019 (“2019 Resolution”), which eliminated the Company’s eligibility for the IEPS credit effective beginning April 30, 2019. During the period of eligibility in 2019, the Company generated IEPS credits resulting in a $12.8 million net tax benefit, which was recognized as a reduction to income tax expense within the consolidated statements of income for the year ended December 31, 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Leases Classification December 31, 2019 ( in millions ) Assets Operating Operating lease right-of-use assets $ 158.4 Finance Property and equipment (including Concession assets), net 8.7 Total leased assets $ 167.1 Liabilities Current Operating Accounts payable and accrued liabilities $ 45.4 Finance Long-term debt due within one year 1.9 Noncurrent Operating Long-term operating lease liabilities 85.7 Finance Long-term debt 6.8 Total lease liabilities $ 139.8 Year ended Lease Cost Classification December 31, 2019 ( in millions ) Operating lease cost: Equipment costs $ 43.0 Materials and other 10.7 Finance lease cost: Amortization of finance lease assets Depreciation and amortization 2.7 Interest on lease liabilities Interest expense 1.1 Total lease cost $ 57.5 Cash Flow Information Cash paid for operating leases included in operating activities $ 58.7 Cash paid for finance leases included in operating activities 1.1 Cash paid for finance leases included in financing activities 2.7 Right-of-use assets obtained in exchange for operating lease liabilities 35.2 Lease Term and Discount Rate Weighted-Average Remaining Lease Term (years) Weighted-Average Discount Rate Operating leases 4.9 3.9 % Finance leases 3.9 11.1 % Remaining Maturities of Lease Liabilities Year Ending December 31 ( in millions ), Operating Leases Finance Leases 2020 $ 50.3 $ 2.7 2021 31.0 2.7 2022 22.0 2.7 2023 16.2 2.4 2024 13.7 0.1 Thereafter 8.4 — Total lease payments 141.6 10.6 Less imputed interest 10.5 1.9 Total $ 131.1 $ 8.7 As of December 31, 2019, the Company had additional operating leases that have not yet commenced of $3.3 million , which will commence during fiscal year 2020, and carry lease terms of 5 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table presents revenues disaggregated by the major commodity groups as well as the product types included within the major commodity groups (in millions) . The Company believes disaggregation by product type best depicts how cash flows are affected by economic factors. See Note 20 , Geographic Information in the consolidated financial statements for revenues by geographical area. Years ended December 31, 2019 (ASC 606) 2018 (ASC 606) 2017 (ASC 605) Chemical & Petroleum Chemicals $ 246.9 $ 236.3 $ 225.1 Petroleum 341.8 241.9 186.0 Plastics 148.5 143.9 128.8 Total 737.2 622.1 539.9 Industrial & Consumer Products Forest Products 261.4 268.0 255.8 Metals & Scrap 232.9 208.2 223.3 Other 116.1 114.8 109.2 Total 610.4 591.0 588.3 Agriculture & Minerals Grain 298.4 289.9 278.1 Food Products 149.4 145.7 151.1 Ores & Minerals 25.0 20.9 19.9 Stone, Clay & Glass 33.5 29.9 28.3 Total 506.3 486.4 477.4 Energy Utility Coal 126.9 117.3 166.3 Coal & Petroleum Coke 43.2 44.3 40.8 Frac Sand 27.4 37.4 51.8 Crude Oil 48.7 57.3 24.9 Total 246.2 256.3 283.8 Intermodal 370.2 382.8 363.8 Automotive 255.6 253.2 230.8 Total Freight Revenues 2,725.9 2,591.8 2,484.0 Other Revenue 140.1 122.2 98.9 Total Revenues $ 2,866.0 $ 2,714.0 $ 2,582.9 Major customers No individual customer makes up greater than 10% of total consolidated revenues. Contract Balances The amount of revenue recognized in 2019 from performance obligations partially satisfied in the previous year was $21.9 million . The performance obligations that were unsatisfied or partially satisfied as of December 31, 2019 , were $17.7 million , which represents in-transit shipments that are fully satisfied the following month. A receivable is any unconditional right to consideration, and is recognized as shipments have been completed and the relating performance obligation has been fully satisfied. At December 31, 2019 and 2018 , the accounts receivable, net balance was $274.2 million and $301.2 million , respectively. Contract assets represent a conditional right to consideration in exchange for goods or services. The Company did not have any contract assets at December 31, 2019 and 2018 . Contract liabilities represent consideration received in advance from customers, and are recognized as revenue over time as the relating performance obligation is satisfied. The amount of revenue recognized in 2019 that was included in the opening contract liability balance was $32.4 million . The Company has recognized contract liabilities within the accounts payable and accrued liabilities financial statement caption on the balance sheet. These are considered current liabilities as they will be settled in less than 12 months. The following tables summarize the changes in contract liabilities (in millions) : Contract liabilities Years ended December 31, 2019 (ASC 606) 2018 (ASC 606) Beginning balance $ 32.4 $ 26.8 Revenue recognized that was included in the contract liability balance at the beginning of the period (32.4 ) (26.8 ) Increases due to consideration received, excluding amounts recognized as revenue during the period 30.5 32.4 Ending balance $ 30.5 $ 32.4 |
Hurricane Harvey
Hurricane Harvey | 12 Months Ended |
Dec. 31, 2019 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Hurricane Harvey | Hurricane Harvey In late August 2017, Hurricane Harvey made landfall on the Texas coast and caused flood damage to the Company’s track infrastructure and significantly disrupted the Company’s rail service. The Company filed a claim in the fourth quarter of 2017 under its insurance program for property damage, incremental expenses, and lost profits caused by Hurricane Harvey. In the third quarter of 2017, the Company recognized a receivable for probable insurance recovery offsetting the impact of incremental expenses recognized in the quarter. During 2018, the Company partially settled its insurance claim for $35.5 million . As a result of the nonrefundable partial settlement, the Company recognized gain on insurance recoveries of $17.9 million , net of the self-insured retention and insurance receivable. The Company received the nonrefundable cash proceeds of $25.5 million |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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 2008 and 2017 Equity Incentive Plans 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) : 2019 2018 2017 Net income available to common stockholders for purposes of computing basic and diluted earnings per share $ 538.7 $ 627.2 $ 961.8 Weighted-average number of shares outstanding (in thousands) : Basic shares 99,316 101,852 104,728 Effect of dilution 431 418 312 Diluted shares 99,747 102,270 105,040 Earnings per share: Basic earnings per share $ 5.42 $ 6.16 $ 9.18 Diluted earnings per share $ 5.40 $ 6.13 $ 9.16 Potentially dilutive shares excluded from the calculation ( in thousands ): 2019 2018 2017 Stock options excluded as their inclusion would be anti-dilutive 121 117 150 |
Property and Equipment (includi
Property and Equipment (including Concession Assets) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2019 Land $ 224.9 $ — $ 224.9 N/A Concession land rights 141.1 (29.4 ) 111.7 1.0 % Rail and other track material 2,122.9 (373.3 ) 1,749.6 1.8-3.2% Ties 1,738.4 (405.7 ) 1,332.7 1.4-5.0% Grading 991.5 (179.4 ) 812.1 1.1 % Bridges and tunnels 823.8 (163.0 ) 660.8 1.2 % Ballast 835.6 (236.4 ) 599.2 2.2-4.7% Other (a) 1,449.9 (438.5 ) 1,011.4 3.0 % Total road property 7,962.1 (1,796.3 ) 6,165.8 2.8 % Locomotives 1,593.9 (429.7 ) 1,164.2 5.2 % Freight cars 980.8 (196.6 ) 784.2 2.4 % Other equipment 77.9 (30.4 ) 47.5 4.5 % Total equipment 2,652.6 (656.7 ) 1,995.9 4.1 % Technology and other 345.1 (207.3 ) 137.8 16.3 % Construction in progress 170.2 — 170.2 N/A Total property and equipment (including Concession assets) $ 11,496.0 $ (2,689.7 ) $ 8,806.3 N/A _____________ (a) Other includes signals, buildings and other road assets. As of December 31, 2018 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2018 Land $ 219.3 $ — $ 219.3 N/A Concession land rights 141.1 (27.9 ) 113.2 1.0 % Rail and other track material 2,064.4 (296.3 ) 1,768.1 2.4-2.9% Ties 1,697.9 (465.6 ) 1,232.3 2.0-4.8% Grading 978.2 (169.4 ) 808.8 0.9 % Bridges and tunnels 803.9 (153.8 ) 650.1 1.1 % Ballast 799.9 (223.9 ) 576.0 2.5-4.2% Other (a) 1,367.2 (401.4 ) 965.8 3.2 % Total road property 7,711.5 (1,710.4 ) 6,001.1 2.8 % Locomotives 1,638.1 (436.3 ) 1,201.8 4.9 % Freight cars 1,034.1 (200.9 ) 833.2 2.7 % Other equipment 67.3 (29.0 ) 38.3 5.7 % Total equipment 2,739.5 (666.2 ) 2,073.3 4.1 % Technology and other 305.6 (173.9 ) 131.7 16.6 % Construction in progress 152.5 — 152.5 N/A Total property and equipment (including Concession assets) $ 11,269.5 $ (2,578.4 ) $ 8,691.1 N/A _____________ (a) Other includes signals, buildings and other road assets. Concession assets, net of accumulated amortization of $678.1 million and $645.2 million , totaled $2,335.5 million and $2,260.4 million at December 31, 2019 and 2018 , respectively. Depreciation and amortization of property and equipment (including Concession assets) totaled $350.7 million , $346.7 million and $320.9 million , for 2019 , 2018 , and 2017 , respectively. |
Other Balance Sheet Captions
Other Balance Sheet Captions | 12 Months Ended |
Dec. 31, 2019 | |
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): 2019 2018 Refundable taxes $ 67.3 $ 11.2 Advances to affiliates 47.3 6.3 Mexican fuel excise tax credit — 30.9 Prepaid expenses 21.0 21.7 Other 19.4 3.3 Other current assets $ 155.0 $ 73.4 Accounts Payable and Accrued Liabilities. Accounts payable and accrued liabilities included the following items at December 31 (in millions): 2019 2018 Accounts payable $ 157.1 $ 180.5 Income and other taxes 34.4 35.2 Accrued wages and vacation 79.0 60.9 Short-term operating lease liability 45.4 — Derailments, personal injury and other claim provisions 38.5 44.0 Dividends payable 38.7 36.4 Contract liabilities 30.5 32.4 Interest payable 23.1 20.1 Other 26.6 27.4 Accounts payable and accrued liabilities $ 473.3 $ 436.9 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s assets and liabilities recognized at fair value have been categorized based upon a fair value hierarchy as described in Note 2, Significant Accounting Policies. As of December 31, 2019 , 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 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 carrying value of the Company’s debt was $3,246.0 million and $2,689.4 million at December 31, 2019 and 2018 , 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 Level 2 in the fair value hierarchy. The fair value of the Company’s financial instruments is presented in the following table (in millions) : December 31, 2019 December 31, 2018 Level 2 Level 2 Assets Foreign currency derivative instruments $ 2.5 $ 0.3 Liabilities Debt instruments 3,535.7 2,661.3 Treasury lock agreements — 2.0 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , the Company did not expect any losses as a result of default of its counterparties. Interest Rate Derivative Instruments . In May 2017, the Company executed four treasury lock agreements with an aggregate notional value of $275.0 million and a weighted-average interest rate of 2.85% . The purpose of the treasury locks was to hedge the U.S. Treasury benchmark interest rate associated with future interest payments related to the anticipated refinancing of the $275.0 million , 2.35% senior notes due May 15, 2020 (the “2.35% Senior Notes”). The Company designated the treasury locks as cash flow hedges and recorded unrealized gains and losses in accumulated other comprehensive loss. During the fourth quarter of 2019, KCS issued $425.0 million principal amount of 2.875% senior notes due November 15, 2029 (the “2.875% Senior Notes”), effectively completing the refinancing of the 2.35% Senior Notes, and settled the treasury lock agreements, resulting in cash paid of $25.8 million . This amount was included in accumulated other comprehensive loss and is being amortized to interest expense over the life of the new 2.875% Senior Notes, increasing the effective interest rate on the notes to 3.60% . The settlement and amortization associated with the treasury lock agreements are classified as operating activities within the consolidated statements of cash flows. 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. The Company’s foreign currency forward and zero-cost collar contracts are executed with counterparties in the U.S. and are governed by an International Swaps and Derivatives Association agreement that includes standard netting arrangements. Asset and liability positions from contracts with the same counterparty are net settled upon maturity/expiration and presented on a net basis in the consolidated balance sheets prior to settlement. There was no offsetting of derivative assets or liabilities in the consolidated balance sheets as of December 31, 2019 and 2018 . Below is a summary of the Company’s 2019, 2018 and 2017 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) Notional amount Notional amount Weighted-average exchange rate (in Ps./USD) Cash received/(paid) on settlement Contracts executed in 2019 and outstanding at December 31, 2019 $ 105.0 Ps. 2,041.2 Ps. 19.4 — — — — Contracts executed in 2019 and settled in 2019 $ 400.0 Ps. 7,892.5 Ps. 19.7 $ 410.7 Ps. 7,892.5 Ps. 19.2 $ 10.7 Contracts executed in 2018 and settled in 2019 $ 20.0 Ps. 410.9 Ps. 20.5 $ 20.9 Ps. 410.9 Ps. 19.6 $ 0.9 Contracts executed in 2016 and settled in 2017 $ 340.0 Ps. 6,207.7 Ps. 18.3 $ 287.0 Ps. 6,207.7 Ps. 21.6 $ (53.0 ) Foreign currency zero-cost collar contracts Notional amount Cash received/(paid) on settlement Contracts executed in 2018 and settled in 2019 $ 120.0 $ 0.3 Contracts executed in 2018 and settled in 2018 $ 220.0 $ 3.9 Contracts executed in 2017 and settled in 2018 $ 80.0 $ 10.0 Contracts executed in 2017 and settled in 2017 $ 450.0 $ 42.2 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 gain (loss) within the consolidated statements of income. The cash flows associated with these instruments is classified as an operating activity within the consolidated statements of cash flows. The following table presents the fair value of derivative instruments included in the consolidated balance sheets at December 31 (in millions) : Derivative Assets Balance Sheet Location 2019 2018 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 2.5 $ — Foreign currency zero-cost collar contracts Other current assets — 0.3 Total derivatives not designated as hedging instruments 2.5 0.3 Total derivative assets $ 2.5 $ 0.3 Derivative Liabilities Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Treasury lock agreements Other noncurrent liabilities and deferred credits — 2.0 Total derivatives designated as hedging instruments — 2.0 Total derivative liabilities $ — $ 2.0 The following tables present the effects of derivative instruments on the consolidated statements of income and consolidated statements of comprehensive income for the years ended December 31 (in millions) : Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from AOCI into Income Amount of Gain/(Loss) Reclassified from AOCI into Income 2019 2018 2017 2019 2018 2017 Treasury lock agreements $ (23.8 ) $ 3.6 $ (5.6 ) Interest expense $ (0.2 ) $ — $ — Total $ (23.8 ) $ 3.6 $ (5.6 ) $ (0.2 ) $ — $ — Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative 2019 2018 2017 Foreign currency forward contracts Foreign exchange gain $ 14.1 $ — $ (11.9 ) Foreign currency zero-cost collar contracts Foreign exchange gain — 6.3 50.1 Total $ 14.1 $ 6.3 $ 38.2 See Note 11 , Fair Value Measurements, for the determination of the fair values of derivatives. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , and 2018, KCS had no commercial paper outstanding. For the years ended December 31, 2019 , 2018 and 2017, commercial paper borrowings were outstanding for less than 90 days and the related activity is presented on a net basis in the consolidated statements of cash flows. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt at December 31 (in millions): 2019 2018 Principal Unamortized Discount and Debt Issuance Costs Net Principal Unamortized Discount and Debt Issuance Costs Net Revolving credit facilities, variable interest rate, due 2024 $ — $ — $ — $ — $ — $ — KCS 2.35% senior notes, due 2020 — — — 257.3 0.7 256.6 KCS 3.00% senior notes, due 2023 439.1 2.5 436.6 439.1 3.2 435.9 KCS 3.85% senior notes, due 2023 199.2 1.1 198.1 199.2 1.4 197.8 KCS 3.125% senior notes, due 2026 250.0 2.4 247.6 250.0 2.7 247.3 KCS 2.875% senior notes, due 2029 425.0 4.2 420.8 — — — KCS 4.30% senior notes, due 2043 448.7 8.8 439.9 448.7 9.1 439.6 KCS 4.95% senior notes, due 2045 499.2 7.2 492.0 499.2 7.4 491.8 KCS 4.70% senior notes, due 2048 500.0 6.0 494.0 500.0 6.2 493.8 KCS 4.20% senior notes, due 2069 425.0 7.0 418.0 — — — KCSR 3.85% to 4.95% senior notes, due through 2045 2.7 — 2.7 2.7 — 2.7 KCSM 2.35% to 3.00% senior notes, due through 2023 5.6 — 5.6 23.2 0.1 23.1 RRIF loans 2.96% to 4.29%, due serially through 2037 70.2 0.4 69.8 74.1 0.4 73.7 Financing agreements 9.311%, due serially through 2020 12.0 — 12.0 15.5 — 15.5 Finance lease obligations, due serially to 2024 8.7 — 8.7 11.4 — 11.4 Other debt obligations 0.2 — 0.2 0.2 — 0.2 Total 3,285.6 39.6 3,246.0 2,720.6 31.2 2,689.4 Less: Debt due within one year 18.0 — 18.0 10.1 — 10.1 Long-term debt $ 3,267.6 $ 39.6 $ 3,228.0 $ 2,710.5 $ 31.2 $ 2,679.3 Revolving Credit Facility On March 8, 2019, KCS, with certain of its domestic subsidiaries named therein as guarantors, entered into a new 5 -year, $600.0 million senior unsecured revolving credit facility (the “Revolving Credit Facility”), with a $25.0 million standby letter of credit facility which, if utilized, constitutes usage under the Revolving Credit Facility. The Revolving Credit Facility replaced KCS’s existing $800.0 million revolving credit facility. The Revolving Credit Facility serves as a backstop for KCS’s commercial paper program (the “Commercial Paper Program”) which generally serves as the Company’s primary means of short-term funding. The Commercial Paper Program was amended during 2019 to decrease maximum borrowings under the program from $800.0 million to $600.0 million , consistent with the Revolving Credit Facility. Borrowings under the Revolving Credit Facility bear interest at floating rates. Depending on the Company’s credit rating, the margin that KCS would pay above the London Interbank Offered Rate (“LIBOR”) at any point is between 1.000% and 1.750% . As of December 31, 2019 , the margin was 1.25% based on KCS’s current credit rating. The Revolving Credit Facility is guaranteed by KCSR, together with certain domestic subsidiaries named therein as guarantors and matures on March 8, 2024 . The Revolving Credit Facility agreement contains representations, warranties, covenants 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 Revolving Credit Facility and the Commercial Paper Program. The Revolving Credit Facility was categorized as a debt modification and the Company incurred $2.5 million of debt issuance costs during the first quarter of 2019, which were capitalized and will be amortized over the life of the related debt instrument. The Company recorded debt retirement costs of $0.6 million to write off previously capitalized debt issuance costs. As of December 31, 2019 and 2018 , KCS had no outstanding borrowings under a revolving credit facility. Senior Notes The Company’s senior notes include certain covenants that are customary for these types of debt instruments issued by borrowers with similar credit ratings. The KCS notes are KCS’s general unsecured senior obligations and are unconditionally guaranteed, jointly and severally, on an unsecured senior basis by each current and future domestic subsidiary of KCS that from time to time guarantees the Revolving Credit Facility or any other debt of KCS or any of KCS’s significant subsidiaries that is a 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 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, plus, in each case, accrued interest thereon to, but excluding the redemption date. 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. On November 18, 2019, KCS issued $425.0 million principal amount of senior unsecured notes due November 15, 2029 (the “ 2.875% Senior Notes”), which bear interest semiannually at a fixed annual rate of 2.875% . The 2.875% Senior Notes were issued at a discount to par value, resulting in a $0.4 million discount and a yield to maturity of 2.885% . Additionally on November 18, 2019, KCS issued $425.0 million principal amount of senior unsecured notes due November 15, 2069 (the “ 4.20% Senior Notes”), which bear interest semiannually at a fixed annual rate of 4.20% . The 4.20% Senior Notes were issued at a discount to par value, resulting in a $2.1 million discount and a yield to maturity of 4.224% . The net proceeds from the offerings were used to make payments under the accelerated share repurchase (“ASR”) agreements, to redeem the KCS 2.35% Senior Notes, and for general corporate purposes. On December 18, 2019, KCS and KCSM redeemed all of the $275.0 million aggregate principal amount of the 2.35% Senior Notes, using cash on hand and proceeds from the issuance of KCS’s 2.875% and 4.20% Senior Notes, at a redemption price equal to 100.084% of the principal amount. The Company recorded debt retirement costs of $0.5 million for the call premiums and write-off of unamortized debt issuance costs and original issue discounts. 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 2011, KCSM entered into financing agreements totaling $91.0 million to purchase locomotives. The agreements mature December 2020 , are payable on a quarterly basis and contain annual interest rates of 9.311% . KCSM 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 financing 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, 2019 . 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. Debt Maturities Minimum annual payments for debt maturities are as follows (in millions) : Years Long-Term Debt Net Present Value Finance Leases Total 2020 $ 16.1 $ 1.9 $ 18.0 2021 4.2 2.1 6.3 2022 4.3 2.3 6.6 2023 649.1 2.3 651.4 2024 4.6 0.1 4.7 Thereafter 2,598.6 — 2,598.6 Total $ 3,276.9 $ 8.7 $ 3,285.6 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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 Cuts and Jobs Act. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Tax Reform Act”). The legislation significantly changed U.S. tax law by, among other things, lowering corporate income tax rates, implementing a modified territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduced the U.S. corporate income tax rate from a maximum of 35% to a 21% rate, effective January 1, 2018. Included in the Tax Reform Act were the global intangible low-taxed income (“GILTI”) provisions. The Company elected to account for GILTI tax in the period in which it is incurred. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. Tax Expense (Benefit). Income tax expense (benefit) consists of the following components (in millions): 2019 2018 2017 Current: Federal $ 22.3 $ (10.5 ) $ 47.3 State and local 1.8 0.7 0.6 Foreign 170.4 175.6 163.8 Total current 194.5 165.8 211.7 Deferred: Federal 27.5 77.6 (350.1 ) State and local 14.8 9.1 11.9 Foreign 10.8 5.0 36.9 Total deferred 53.1 91.7 (301.3 ) Total income tax expense (benefit) $ 247.6 $ 257.5 $ (89.6 ) Income before income taxes consists of the following (in millions) : 2019 2018 2017 Income before income taxes: U.S. $ 250.3 $ 366.2 $ 331.8 Foreign 538.1 520.7 542.5 Total income before income taxes $ 788.4 $ 886.9 $ 874.3 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow (in millions): 2019 2018 Assets: Reserves not currently deductible for tax $ 36.8 $ 36.6 Lease liability 35.1 — Compensation and benefits 23.1 20.9 Tax credit and loss carryovers 21.5 28.9 Other 22.4 16.9 Gross deferred tax assets before valuation allowance 138.9 103.3 Valuation allowance (4.4 ) (2.3 ) Net deferred tax assets 134.5 101.0 Liabilities: Property (1,181.3 ) (1,099.2 ) Investments (52.4 ) (49.7 ) Other (28.8 ) (32.0 ) Gross deferred tax liabilities (1,262.5 ) (1,180.9 ) Net deferred tax liability $ (1,128.0 ) $ (1,079.9 ) Tax Rates. Differences between the Company’s effective income tax rate and the U.S. federal statutory income tax rate of 21% for 2019 and 2018 and 35% for 2017 follow (in millions): 2019 2018 2017 Dollars Percent Dollars Percent Dollars Percent Income tax expense using the statutory rate in effect $ 165.6 21.0 % $ 186.2 21.0 % $ 306.0 35.0 % Tax effect of: Difference between U.S. and foreign tax rate 47.6 6.0 % 46.1 5.2 % (26.6 ) (3.0 %) Foreign exchange (i) 35.9 4.6 % 21.8 2.5 % 31.6 3.6 % Tax credits (16.8 ) (2.1 %) (14.2 ) (1.6 %) (8.4 ) (1.0 %) Mexican fuel excise tax credit, net (ii) (12.8 ) (1.6 %) — — — — State and local income tax provision, net 11.5 1.5 % 7.5 0.8 % 8.3 1.0 % Withholding tax 9.5 1.2 % 11.2 1.3 % 8.1 0.9 % Global intangible low-taxed income (“GILTI”) tax, net 2.7 0.3 % 11.8 1.3 % — — Change in U.S. tax rate — — (2.2 ) (0.3 %) (487.6 ) (55.8 %) Deemed mandatory repatriation — — (18.7 ) (2.1 %) 74.6 8.6 % Other, net 4.4 0.5 % 8.0 0.9 % 4.4 0.5 % Income tax expense (benefit) $ 247.6 31.4 % $ 257.5 29.0 % $ (89.6 ) (10.2 %) _____________________ (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 gain (loss) within the consolidated statements of income. Refer to Note 12 , Derivative Instruments in the consolidated financial statements for further information. (ii) For further discussion of the Mexican fuel excise tax credit, refer to Note 4, Mexican fuel excise tax credit. Difference Attributable to Foreign Investments. The Company asserts that all foreign earnings will be indefinitely reinvested to the extent of local needs and earnings that would be distributed in a taxable manner. The Company therefore intends to limit distributions to earnings previously taxed in the U.S., or earnings that would qualify for the 100 percent dividends received deduction provided for in the Tax Reform Act, and earnings that would not result in any significant foreign taxes. Therefore, the Company has not recognized a deferred tax liability on its investment in foreign subsidiaries. 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, 2020 and as late as December 31, 2039. The state loss carryover at December 31, 2019 was $351.9 million resulting in a state deferred tax asset of $22.5 million . The Mexico federal loss carryovers at December 31, 2019 , were $11.1 million and, if not used, will begin to expire in 2026. A deferred tax asset was recognized 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. The valuation allowance for deferred tax assets as of December 31, 2019 and 2018 , was $4.4 million and $2.3 million , respectively, primarily attributable to state net operating loss carryovers. 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. 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 ): 2019 2018 Balance at January 1, $ 2.2 $ — Additions for tax positions of prior years — 2.2 Balance at December 31, $ 2.2 $ 2.2 The unrecognized tax benefit would affect the effective income tax rate if recognized, and is reasonably possible to be resolved over the next twelve months as part of the Internal Revenue Service (“IRS”) examination. 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 2015 and in Mexico for periods after 2012 remain open to examination by the taxing authorities. In 2018, the IRS initiated an examination of the 2016 U.S. federal tax return. During the first quarter of 2019, the Servicio de Administración Tributaria (the “SAT”), the Mexican equivalent of the IRS, initiated an audit of the KCSM 2013 and 2014 Mexico tax returns. The Company does not expect that these examinations will have a material impact on the consolidated financial statements. During the first quarter of 2017, the Company received audit assessments from the SAT for the KCSM 2009 and 2010 Mexico tax returns. In 2017, the Company commenced administrative actions with the SAT. During the first quarter of 2018, the audit assessments were nullified by the SAT. In the third quarter of 2018, the SAT issued new assessments and the Company filed administrative appeals with the SAT. The Company believes that it has strong legal arguments in its favor and it is more likely than not that it will prevail in any challenge of the assessments. 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 appealed this resolution to the Mexican circuit court. In September 2017, KCSM was notified of a resolution by the circuit court which ordered the tax court to consider an argument made by KCSM in the original tax court proceeding that was not addressed in the tax court’s November 2016 resolution. In October 2017, the tax court ruled that the arguments made by KCSM asserting that the SAT unduly extended the audit process were not valid, and also annulled the assessment consistent with the tax court’s earlier November 2016 ruling. In December 2017, KCSM and the SAT filed an appeal with the Federal Courts of Appeals. KCSM’s appeal was intended to preclude the SAT from issuing a new assessment. In November 2018, the Appeals Court issued a ruling denying the SAT appeal and permanently annulled the VAT assessment. The SAT is unable to appeal the decision. The Appeals Court also denied KCSM’s appeal. In February 2019, the SAT issued a new assessment that conflicted with the tax court’s guidelines. As such, in March 2019, KCSM filed a complaint with the tax court to require the SAT to follow the guidelines issued by the tax court that would result in no tax being assessed. In April 2019, the Company filed a nullification lawsuit with the tax court. In June 2019, the tax court ruled in favor of KCSM’s legal complaint, and declared the new 2005 VAT assessment null and void. In August 2019, the SAT informed KCSM that it would not issue a new assessment. 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 appealed this resolution. In October 2017, the circuit court resolved to not render a decision on the case but rather to send the SAT’s appeal to the Supreme Court. In February 2018, the Supreme Court decided not to hear the case and remanded the SAT’s appeal back to the circuit court for a decision. In July 2018, the circuit court ordered the tax court to consider certain arguments made by the SAT in the original court proceeding that were not addressed in the tax court’s December 2016 resolution. In October 2018, the tax court issued a decision confirming the 2008 Ruling. The SAT has appealed this decision. The Company believes it is more likely than not that it will continue to prevail in this matter. Further, as of the date of this filing, the SAT has not implemented any new criteria regarding the assessment of VAT on international import transportation services. The Company believes it is probable that any unexpected nullification of the 2008 Ruling and the implementation of any new VAT criteria would be applied on a prospective basis, in which case, due to the pass-through nature of VAT, KCSM would begin to assess its customers for VAT on international import transportation services, resulting in no material impact to the Company’s consolidated financial statements. Fuel purchases in Mexico are subject to an excise tax that is included in the price of fuel. Through April 29, 2019, the Company was eligible for an IEPS credit for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in Mexico. On April 29, 2019, the SAT published the 2019 Resolution, which eliminated locomotives as a type of equipment eligible for the IEPS credit beginning April 30, 2019. The Company believes the 2019 Resolution does not affect locomotives as equipment eligible for the IEPS credit generated from January 1, 2019 through April 29, 2019 and the Company should prevail in any challenge to this portion of the IEPS credit. KCSM filed a legal challenge to the 2019 Resolution based on various arguments, including, the SAT’s lack of authority to change the treatment of locomotives as equipment not eligible for IEPS credit adopted by the Mexico congress, and the discriminatory application against the rail industry. In December 2019, the Mexican court ruled in favor of the SAT. The Company does not plan on filing an appeal. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Information regarding the Company’s capital stock at December 31 follows: Shares Authorized Shares Issued 2019 2018 2019 2018 $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: 2019 2018 $25 par, 4% noncumulative, preferred stock 222,625 228,395 $.01 par, common stock 96,115,669 100,896,678 Share Repurchases. In November 2019, the Company announced a new common share repurchase program authorizing the Company to purchase up to $2.0 billion of its outstanding shares of common stock through December 31, 2022 (the “2019 Program”). Share repurchases may be made in the open market, through privately negotiated transactions, or through ASR transactions. The 2019 Program replaced KCS’s $800.0 million common share repurchase program announced on August 15, 2017 (the “2017 Program”), and eliminated the $59.3 million of remaining authorization under the 2017 program. Under an ASR agreement, the Company pays a specified amount to a financial institution and receives an initial delivery of shares. The final number and total cost of shares repurchased is then based on the volume-weighted average price of the Company’s common stock during the term of the agreements. The transactions are accounted for as equity transactions with any excess of repurchase price over par value allocated between additional paid-in capital and retained earnings. At the time the shares are received, there is an immediate reduction in the weighted-average number of shares outstanding for purposes of the basic and diluted earnings per share computation. During the fourth quarter of 2019, the Company paid $550.0 million under two ASR agreements and received an aggregate initial delivery of shares, which represents approximately 85% of the total shares to be received under the agreements. The final number and total cost of shares repurchased is then based on the volume-weighted-average price of the Company’s common stock during the term of the agreements, which are expected to be settled when final shares are delivered. The terms of the ASR agreements, structured as outlined above, were as follows: Third Party Institution Agreement Date Total Amount of Agreement (in millions) Initial Shares Delivered Fair Market Value of Initial Shares (in millions) Weighted-Average Price Per Share ASR Agreement #1 November 2019 $ 275.0 1,511,380 $ 233.75 $ 154.66 ASR Agreement #2 November 2019 $ 275.0 1,511,380 $ 233.75 $ 154.66 Total $ 550.0 3,022,760 $ 467.5 $ 154.66 As of December 31, 2019, the remaining $82.5 million was recognized as a forward contract indexed to the Company’s own common stock and included in capital surplus within additional paid-in capital in the accompanying consolidated balance sheets. The Company’s 2019 repurchases of common stock totaled 2,053,770 shares of common stock for $242.4 million under the 2017 Program, and 3,022,760 shares of common stock for $467.5 million under the 2019 Program (which consisted of initial delivery of shares under the ASR agreements.) During 2019, the Company repurchased 5,770 shares of its $25 par preferred stock for $0.1 million at an average price of $26.39 per share. Treasury Stock. Shares of common stock in treasury and related activity follow: 2019 2018 2017 Balance at beginning of year 22,455,507 20,315,380 16,745,566 Shares repurchased 5,076,530 2,272,213 3,759,678 Shares issued to fund stock option exercises (109,560 ) (24,024 ) (9,110 ) Employee stock purchase plan shares issued (72,707 ) (62,866 ) (76,401 ) Nonvested shares issued (124,031 ) (51,191 ) (124,519 ) Nonvested shares forfeited 10,777 5,995 20,166 Balance at end of year 27,236,516 22,455,507 20,315,380 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: 2019 2018 2017 Cash dividends declared per common share $ 1.48 $ 1.44 $ 1.38 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | Share-Based Compensation On May 4, 2017, the Company’ stockholders approved the Kansas City Southern 2017 Equity Incentive Plan (the “2017 Plan”). Upon approval, the Company ceased issuing awards under the Kansas City Southern 2008 Stock Option and Performance Award Plan (the “2008 Plan”). The Board of Directors and its Compensation and Organization Committee had previously adopted the 2017 Plan, subject to stockholder approval, on January 26, 2017, and February 17, 2017, respectively. The 2017 Plan provides for the granting of up to 3,750,000 shares of the Company’s common stock to eligible persons as defined in the 2017 Plan. Outstanding equity awards granted under the 2008 Plan and the 2017 Plan (the “Plans”) are to be governed by the terms and conditions of each individual plan and the related award agreements. Stock Options. The exercise price for options granted under the Plans 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 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: 2019 2018 2017 Expected dividend yield 1.33 % 1.36 % 1.52 % Expected volatility 26.38 % 27.09 % 30.74 % Risk-free interest rate 2.64 % 2.80 % 2.20 % Expected term (years) 5.7 6.0 6.0 Weighted-average grant date fair value of stock options granted $ 27.70 $ 28.52 $ 24.49 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 term 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, 2018 564,515 $ 83.24 Granted 142,348 108.00 Exercised (109,560 ) 63.57 Forfeited or expired (789 ) 104.48 Options outstanding at December 31, 2019 596,514 $ 92.73 6.2 $ 36.0 Exercisable at December 31, 2019 391,685 $ 86.42 4.9 $ 26.1 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 $2.6 million , $2.5 million , and $2.3 million was recognized for stock option awards for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The total income tax benefit recognized in the consolidated statements of income was $0.6 million , $0.6 million , and $0.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Additional information regarding stock option exercises appears in the table below (in millions) : 2019 2018 2017 Aggregate grant-date fair value of stock options vested $ 3.0 $ 1.9 $ 2.8 Intrinsic value of stock options exercised 7.2 1.0 0.2 Cash received from option exercises 7.0 1.8 0.7 Tax benefit from options exercised during the annual period 1.8 0.2 0.1 As of December 31, 2019 , $1.4 million of unrecognized compensation cost relating to nonvested stock options is expected to be recognized over a weighted-average period of one year . At December 31, 2019 , there were 3,179,090 shares available for future grants under the 2017 Plan. Nonvested Stock. The Plans provide 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 years or 5 years of vesting for employees. Awards granted to the Company’s directors vest immediately on date of grant. The grant date fair value of nonvested shares is recorded to compensation expense on a straight-line basis over the vesting period. 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, 2018 257,621 $ 96.61 Granted 96,163 114.69 Vested (122,812 ) 101.67 Forfeited (10,777 ) 102.44 Nonvested stock at December 31, 2019 220,195 $ 101.40 $ 33.7 The fair value (at vest date) of shares vested during the years ended December 31, 2019 , 2018 , and 2017 was $15.2 million , $10.4 million , and $5.9 million , respectively. The weighted-average grant date fair value of nonvested stock granted during 2019 , 2018 , and 2017 was $114.69 , $106.52 and $93.29 , respectively. Compensation cost for nonvested stock was $10.1 million , $10.8 million , and $9.3 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The total income tax benefit recognized in the consolidated statements of income was $2.5 million , $2.6 million , and $3.5 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. As of December 31, 2019 , $10.9 million of unrecognized compensation costs related to nonvested stock is expected to be recognized over a weighted-average period of 1.2 years. Performance Based Awards. The Company granted performance based nonvested stock awards during 2019 (the “2019 Awards”), 2018 (the “2018 Awards”) and 2017 (the “2017 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 3 -year performance period. The awards are also subject to a revenue growth multiplier based on a 3 -year performance period calculated as defined in the related 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, 2018 152,979 $ 91.74 Granted 50,681 110.13 Vested (51,072 ) 82.71 Forfeited (4,403 ) 104.47 Nonvested stock, at December 31, 2019 148,185 $ 100.76 _____________________ * For the 2019 Awards and the 2018 Awards, participants in the aggregate can earn up to a maximum of 96,998 and 96,774 shares, respectively. For the 2017 Awards, the performance shares earned were 87,092 . The weighted-average grant date fair value of performance based nonvested stock granted during 2019 , 2018 and 2017 was $110.13 , $105.83 and $87.09 , 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 $7.8 million , $5.8 million and $6.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Total income tax benefit recognized in the consolidated statements of income for performance based awards was $1.9 million , $1.5 million and $2.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , $5.3 million of unrecognized compensation cost related to performance based awards is expected to be recognized over a weighted-average period of eleven months . The fair value (at vest date) of shares vested for the year ended December 31, 2019 was $5.7 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. Under the ESPP, eligible employees may contribute, through payroll deductions, 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 2019 offering January 3, 2020 $ 104.83 27,949 $ 2.9 January 2019 offering July 2, 2019 81.83 36,735 3.0 July 2018 offering January 3, 2019 81.13 35,972 2.9 January 2018 offering July 2, 2018 90.07 32,271 2.9 July 2017 offering January 4, 2018 89.18 30,595 2.7 January 2017 offering July 5, 2017 68.70 40,293 2.8 _____________________ (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, 2019 2018 2017 Expected dividend yield 1.36 % 1.22 % 1.47 % Expected volatility 17.43 % 13.29 % 17.09 % Risk-free interest rate 2.31 % 1.73 % 0.89 % Expected term (years) 0.5 0.5 0.5 Weighted-average grant date fair value $ 21.56 $ 18.66 $ 17.90 Compensation expense of $1.4 million , $1.3 million , and $1.3 million was recognized for ESPP option awards for the years ended December 31, 2019 , 2018 , and 2017 , respectively. At December 31, 2019 , there were 3.4 million remaining shares available for future ESPP offerings under the plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , the concession duty expense, which is recorded within materials and other in operating expenses, was $18.9 million , compared to $17.8 million and $17.0 million for the same periods in 2018 and 2017 , respectively. Litigation. Occasionally, the Company is a party to various legal proceedings, regulatory examinations, investigations, administrative actions, and other legal matters, arising for the most part in the ordinary course of business, 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 that management believes are adequate to cover expected costs. The outcome of litigation and other legal matters is always uncertain. KCS believes it has valid defenses to the legal matters currently pending against it, is defending itself vigorously, and has recorded accruals determined in accordance with U.S. GAAP, where appropriate. In making a determination regarding accruals, using available information, KCS evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party to and records a loss contingency when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. These subjective determinations are based on the status of such legal or regulatory proceedings, the merits of KCS’s defenses and consultation with legal counsel. Actual outcomes of these legal and regulatory proceedings may materially differ from the current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to KCS’s consolidated results of operations, liquidity or financial condition. 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 Clean Water 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, 2019 , is based on an updated actuarial study of personal injury claims through November 30, 2019, and review of December 2019 experience. For the years ended December 31, 2019 and 2018 , the Company recognized increases of $0.2 million and $2.4 million , 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): 2019 2018 Balance at beginning of year $ 19.6 $ 19.3 Accruals 6.3 5.3 Changes in estimate 0.2 2.4 Payments (5.2 ) (7.4 ) Balance at end of year $ 20.9 $ 19.6 Tax Contingencies. Information regarding tax contingencies is included in Note 15 , 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 believes that, when resolved, these disputes will not 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 terms, deterioration of customer creditworthiness, bankruptcy, insolvency or liquidation of a customer, 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, 2019 . Panama Canal Railway Company (”PCRC”) Guarantees and Indemnities. At December 31, 2019 , the Company had issued and outstanding $5.6 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Fourth Third Second First (In millions, except per share amounts) 2019 Revenues $ 729.5 $ 747.7 $ 714.0 $ 674.8 Operating income (i) 236.0 282.0 208.0 160.3 Net income (iii) 127.9 180.6 129.1 103.2 Net income attributable to Kansas City Southern and subsidiaries 127.2 180.2 128.7 102.8 Per share data: Basic earnings per common share $ 1.31 $ 1.81 $ 1.29 $ 1.02 Diluted earnings per common share 1.30 1.81 1.28 1.02 2018 Revenues $ 694.0 $ 699.0 $ 682.4 $ 638.6 Operating income (ii)(iv) 256.4 265.4 245.8 218.7 Net income (v) 161.8 174.0 148.7 144.9 Net income attributable to Kansas City Southern and subsidiaries 161.1 173.6 148.2 144.5 Per share data: Basic earnings per common share $ 1.59 $ 1.71 $ 1.45 $ 1.41 Diluted earnings per common share 1.59 1.70 1.45 1.40 _____________________ (i) During the first, second, third and fourth quarters of 2019, the Company recognized pre-tax restructuring charges of $67.5 million , $51.0 million , $12.0 million and $38.3 million , respectively, within operating expenses related to the implementation of PSR initiatives. (ii) During the first, second, third, and fourth quarters of 2018, the Company recognized a pre-tax benefit of $9.2 million , $8.0 million , $9.4 million , and $11.1 million , respectively, within operating expenses related to a credit that was available for the excise tax included in the price of fuel that was purchased and consumed in locomotives and certain work equipment in Mexico. Effective January 1, 2019, the Company began recognizing the benefit as a reduction of income tax expense due to changes in Mexican tax law; and beginning April 30, 2019, railroads in Mexico are no longer eligible for the tax credit due to changes in Mexican tax regulations. (iii) During the first, second, third, and fourth quarters of 2019, the Company recognized, net, a tax benefit of $6.8 million , expense of $1.9 million , and benefits of $3.7 million , and $4.2 million , respectively, related to the Mexican fuel excise tax credit generated through April 29, 2019, noted in (ii) above. (iv) During the third and fourth quarters of 2018, the Company recognized a pre-tax gain of $9.4 million and $8.5 million , respectively, within operating expense for insurance recoveries related to damage from Hurricane Harvey in 2017. (v) During the second and third quarters of 2018, the Company recognized discrete tax benefits of $4.3 million and $16.6 million , respectively, for adjustments to the provisional tax impacts of the Tax Reform Act. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Revenues U.S. $ 1,493.5 $ 1,424.8 $ 1,359.5 Mexico 1,372.5 1,289.2 1,223.4 Total revenues $ 2,866.0 $ 2,714.0 $ 2,582.9 December 31, 2019 2018 Property and equipment (including Concession assets), net U.S. $ 5,435.9 $ 5,401.3 Mexico 3,370.4 3,289.8 Total property and equipment (including Concession assets), net $ 8,806.3 $ 8,691.1 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Lease Termination On January 10, 2020, the Company executed agreements that resulted in the termination of two existing leases covering 91 locomotives and the purchase of the underlying assets for a total cash purchase price of $78.0 million . This lease termination and purchase resulted in a decrease of the operating lease right-of-use asset and operating lease liability and 78 of the locomotives were subsequently recorded within property and equipment. The remaining 13 locomotives were impaired during the fourth quarter of 2019. The purchase of the impaired leased locomotives resulted in $6.0 million of make-whole payments recorded as incremental restructuring charges in the first quarter of 2020. Foreign Currency Hedging As of December 31, 2019 , the Company had outstanding foreign currency forward contracts with an aggregate notional amount of $105.0 million , which matured during January 2020 and obligated the Company to purchase a total of Ps. 2,041.2 million at a weighted-average exchange rate of Ps. 19.4 to each U.S. dollar. During January 2020, the Company entered into offsetting contracts with an aggregate notional amount of $108.6 million , which matured during January 2020 and obligated the Company to sell a total of Ps. 2,041.2 million at a weighted-average exchange rate of Ps. 18.8 to each U.S. dollar. During January 2020, the Company entered into several foreign currency forward contracts with an aggregate notional amount of $250.0 million and maturity dates in February 2020. These contracts obligate the Company to purchase a total of Ps. 4,751.5 million at a weighted-average exchange rate of Ps. 19.0 to each U.S. dollar. 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 income. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , KCS, the parent, had outstanding $3,186.2 million senior notes due through 2069 . 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 100% owned domestic subsidiaries of KCS (the “Guarantor Subsidiaries”). As of December 31, 2019 , KCSR had outstanding $2.7 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 the Guarantor Subsidiaries. The following condensed and consolidating financial information ( in millions ) of KCS, KCSR, the Guarantor Subsidiaries and the other KCS subsidiaries that are not guarantors (the "Non-Guarantor Subsidiaries") are being presented in order to meet the reporting requirements under Rule 3-10 of Regulation S-X. Pursuant to Rule 3-10(d) and (f) of Regulation S-X, separate financial statements for the Issuer, the Parent and the Guarantor Subsidiaries are not required to be filed with the SEC as the subsidiary debt issuer and the guarantors are directly or indirectly 100% owned by the Parent and the guarantees are full and unconditional and joint and several. Condensed Consolidating Statements of Comprehensive Income 2019 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,325.8 $ 42.7 $ 1,541.4 $ (43.9 ) $ 2,866.0 Operating expenses 5.3 1,044.7 37.6 934.7 (42.6 ) 1,979.7 Operating income (loss) (5.3 ) 281.1 5.1 606.7 (1.3 ) 886.3 Equity in net earnings (losses) of affiliates 548.7 (1.1 ) 3.7 (0.3 ) (550.0 ) 1.0 Interest expense (109.7 ) (85.4 ) — (28.0 ) 107.2 (115.9 ) Debt retirement costs (0.7 ) (0.2 ) — (0.2 ) — (1.1 ) Foreign exchange gain — — — 17.1 — 17.1 Other income (expense), net 107.5 (1.1 ) — 2.0 (107.4 ) 1.0 Income before income taxes 540.5 193.3 8.8 597.3 (551.5 ) 788.4 Income tax expense 1.6 44.4 0.7 201.3 (0.4 ) 247.6 Net income 538.9 148.9 8.1 396.0 (551.1 ) 540.8 Less: Net income attributable to noncontrolling interest — — — 1.9 — 1.9 Net income attributable to Kansas City Southern and subsidiaries 538.9 148.9 8.1 394.1 (551.1 ) 538.9 Other comprehensive income (loss) (18.2 ) — — 0.5 (0.5 ) (18.2 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 520.7 $ 148.9 $ 8.1 $ 394.6 $ (551.6 ) $ 520.7 Condensed Consolidating Statements of Comprehensive Income—(Continued) 2018 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,279.2 $ 45.2 $ 1,433.5 $ (43.9 ) $ 2,714.0 Operating expenses 5.2 877.2 38.7 848.4 (41.8 ) 1,727.7 Operating income (loss) (5.2 ) 402.0 6.5 585.1 (2.1 ) 986.3 Equity in net earnings (losses) of affiliates 635.6 (1.1 ) 4.5 0.3 (636.7 ) 2.6 Interest expense (96.1 ) (78.8 ) — (28.6 ) 93.5 (110.0 ) Debt retirement costs — — — (2.2 ) — (2.2 ) Foreign exchange gain — — — 7.8 — 7.8 Other income, net 92.5 1.6 — 1.9 (93.6 ) 2.4 Income before income taxes 626.8 323.7 11.0 564.3 (638.9 ) 886.9 Income tax expense (benefit) (0.6 ) 69.7 2.6 186.3 (0.5 ) 257.5 Net income 627.4 254.0 8.4 378.0 (638.4 ) 629.4 Less: Net income attributable to noncontrolling interest — — — 2.0 — 2.0 Net income attributable to Kansas City Southern and subsidiaries 627.4 254.0 8.4 376.0 (638.4 ) 627.4 Other comprehensive income 2.7 — — 0.1 (0.1 ) 2.7 Comprehensive income attributable to Kansas City Southern and subsidiaries $ 630.1 $ 254.0 $ 8.4 $ 376.1 $ (638.5 ) $ 630.1 Condensed Consolidating Statements of Comprehensive Income—(Continued) 2017 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,220.8 $ 43.5 $ 1,359.0 $ (40.4 ) $ 2,582.9 Operating expenses 5.7 862.8 39.1 791.0 (37.3 ) 1,661.3 Operating income (loss) (5.7 ) 358.0 4.4 568.0 (3.1 ) 921.6 Equity in net earnings of affiliates 974.8 19.0 4.5 9.6 (996.4 ) 11.5 Interest expense (81.3 ) (72.2 ) — (34.4 ) 87.7 (100.2 ) Debt retirement costs — — — — — — Foreign exchange gain — — — 41.7 — 41.7 Other income (expense), net 86.7 (0.6 ) — 1.2 (87.6 ) (0.3 ) Income before income taxes 974.5 304.2 8.9 586.1 (999.4 ) 874.3 Income tax expense (benefit) 9.9 (310.6 ) (42.5 ) 254.2 (0.6 ) (89.6 ) Net income 964.6 614.8 51.4 331.9 (998.8 ) 963.9 Less: Net income attributable to noncontrolling interest — — — 1.9 — 1.9 Net income attributable to Kansas City Southern and subsidiaries 964.6 614.8 51.4 330.0 (998.8 ) 962.0 Other comprehensive income (loss) (6.7 ) — — 0.5 (0.5 ) (6.7 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 957.9 $ 614.8 $ 51.4 $ 330.5 $ (999.3 ) $ 955.3 Condensed Consolidating Balance Sheets December 31, 2019 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 214.7 $ 534.3 $ 5.3 $ 406.2 $ (431.9 ) $ 728.6 Operating lease right-of-use assets — 124.5 — 37.7 (3.8 ) 158.4 Investments — 3.5 9.5 34.6 — 47.6 Investments in consolidated subsidiaries 5,201.4 1.9 203.0 — (5,406.3 ) — Property and equipment (including Concession assets), net — 4,440.0 158.8 4,217.1 (9.6 ) 8,806.3 Other assets 2,526.2 16.2 — 26.4 (2,522.9 ) 45.9 Total assets $ 7,942.3 $ 5,120.4 $ 376.6 $ 4,722.0 $ (8,374.5 ) $ 9,786.8 Liabilities and equity: Current liabilities $ 365.5 $ 250.1 $ 68.8 $ 241.2 $ (434.3 ) $ 491.3 Long-term operating lease liabilities — 64.7 — 23.9 (2.9 ) 85.7 Long-term debt 3,147.2 1,826.8 — 777.0 (2,523.0 ) 3,228.0 Deferred income taxes (6.1 ) 844.8 85.5 206.2 (2.4 ) 1,128.0 Other liabilities 13.2 76.2 0.2 18.3 — 107.9 Stockholders’ equity 4,422.5 2,057.8 222.1 3,132.0 (5,411.9 ) 4,422.5 Noncontrolling interest — — — 323.4 — 323.4 Total liabilities and equity $ 7,942.3 $ 5,120.4 $ 376.6 $ 4,722.0 $ (8,374.5 ) $ 9,786.8 Condensed Consolidating Balance Sheets—(Continued) December 31, 2018 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 229.8 $ 257.6 $ 5.0 $ 350.4 $ (207.4 ) $ 635.4 Operating lease right-of-use assets — — — — — — Investments — 3.9 4.4 36.6 — 44.9 Investments in consolidated subsidiaries 4,852.8 4.4 190.2 — (5,047.4 ) — Property and equipment (including Concession assets), net — 4,429.2 165.1 4,104.8 (8.0 ) 8,691.1 Other assets 2,523.4 59.3 — 36.8 (2,521.1 ) 98.4 Total assets $ 7,606.0 $ 4,754.4 $ 364.7 $ 4,528.6 $ (7,783.9 ) $ 9,469.8 Liabilities and equity: Current liabilities $ 214.2 $ 109.2 $ 80.1 $ 252.3 $ (208.8 ) $ 447.0 Long-term operating lease liabilities — — — — — — Long-term debt 2,563.0 1,828.8 — 808.5 (2,521.0 ) 2,679.3 Deferred income taxes (4.4 ) 812.8 84.7 188.8 (2.0 ) 1,079.9 Other liabilities 20.2 94.8 0.2 15.8 (0.1 ) 130.9 Stockholders’ equity 4,813.0 1,908.8 199.7 2,943.5 (5,052.0 ) 4,813.0 Noncontrolling interest — — — 319.7 — 319.7 Total liabilities and equity $ 7,606.0 $ 4,754.4 $ 364.7 $ 4,528.6 $ (7,783.9 ) $ 9,469.8 Condensed Consolidating Statements of Cash Flows 2019 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 354.4 $ 375.4 $ 1.0 $ 587.7 $ (215.0 ) $ 1,103.5 Investing activities: Capital expenditures — (278.8 ) (1.0 ) (307.4 ) — (587.2 ) Purchase or replacement of assets under operating leases — (38.4 ) — (0.6 ) — (39.0 ) Property investments in MSLLC — — — (27.5 ) — (27.5 ) Insurance proceeds related to hurricane damage — — — — — — Investments in and advances to affiliates (14.3 ) — (14.3 ) (31.4 ) 23.3 (36.7 ) Proceeds from repayment of loans to affiliates 147.0 — — 130.0 (277.0 ) — Loans to affiliates (147.0 ) — — (130.0 ) 277.0 — Proceeds from disposal of property — 17.8 — 4.3 — 22.1 Other investing activities — (12.5 ) — 2.6 1.9 (8.0 ) Net cash used (14.3 ) (311.9 ) (15.3 ) (360.0 ) 25.2 (676.3 ) Financing activities: Net short-term borrowings — — — — — — Proceeds from issuance of long-term debt 847.5 — — — — 847.5 Repayment of long-term debt (257.4 ) (2.8 ) — (24.8 ) — (285.0 ) Debt issuance and retirement costs paid (9.1 ) (1.2 ) — (1.3 ) — (11.6 ) Dividends paid (144.3 ) — — (213.1 ) 213.1 (144.3 ) Shares repurchased (792.5 ) — — — — (792.5 ) Proceeds from loans from affiliates 130.0 147.0 — — (277.0 ) — Repayment of loans from affiliates (130.0 ) (147.0 ) — — 277.0 — Contributions from affiliates — — 14.3 9.0 (23.3 ) — Proceeds from employee stock plans 7.0 — — — — 7.0 Net cash provided (used) (348.8 ) (4.0 ) 14.3 (230.2 ) 189.8 (378.9 ) Cash and cash equivalents: Net increase (decrease) (8.7 ) 59.5 — (2.5 ) — 48.3 At beginning of year 41.5 28.1 — 30.9 — 100.5 At end of year $ 32.8 $ 87.6 $ — $ 28.4 $ — $ 148.8 Condensed Consolidating Statements of Cash Flows—(Continued) 2018 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 223.8 $ 460.9 $ 1.2 $ 501.3 $ (241.5 ) $ 945.7 Investing activities: Capital expenditures — (244.8 ) (1.1 ) (274.4 ) — (520.3 ) Purchase or replacement of assets under operating leases — (88.4 ) — (10.5 ) — (98.9 ) Property investments in MSLLC — — — (26.1 ) — (26.1 ) Insurance proceeds related to hurricane damage — 7.6 — — — 7.6 Investments in and advances to affiliates (7.8 ) — (7.8 ) (15.2 ) 11.6 (19.2 ) Proceeds from repayment of loans to affiliates 4,584.5 — — 125.0 (4,709.5 ) — Loans to affiliates (4,515.6 ) — — (125.0 ) 4,640.6 — Proceeds from disposal of property — 4.1 — 4.6 — 8.7 Other investing activities — (6.1 ) — — 2.4 (3.7 ) Net cash provided (used) 61.1 (327.6 ) (8.9 ) (321.6 ) (54.9 ) (651.9 ) Financing activities: Net short-term borrowings (348.1 ) — — — — (348.1 ) Proceeds from issuance of long-term debt 499.4 — — — — 499.4 Repayment of long-term debt — (3.9 ) (0.1 ) (77.5 ) — (81.5 ) Debt issuance and retirement costs paid (6.2 ) — — (1.8 ) — (8.0 ) Dividends paid (147.5 ) — — (239.1 ) 239.1 (147.5 ) Shares repurchased (243.5 ) — — — — (243.5 ) Proceeds from loans from affiliates 125.0 4,465.6 — 50.0 (4,640.6 ) — Repayment of loans from affiliates (125.0 ) (4,584.5 ) — — 4,709.5 — Contributions from affiliates — — 7.8 3.8 (11.6 ) — Proceeds from employee stock plans 1.8 — — — — 1.8 Net cash provided (used) (244.1 ) (122.8 ) 7.7 (264.6 ) 296.4 (327.4 ) Cash and cash equivalents: Net increase (decrease) 40.8 10.5 — (84.9 ) — (33.6 ) At beginning of year 0.7 17.6 — 115.8 — 134.1 At end of year $ 41.5 $ 28.1 $ — $ 30.9 $ — $ 100.5 Condensed Consolidating Statements of Cash Flows—(Continued) 2017 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 220.4 $ 556.6 $ 0.4 $ 266.9 $ (15.9 ) $ 1,028.4 Investing activities: Capital expenditures — (375.2 ) (0.3 ) (209.9 ) — (585.4 ) Purchase or replacement of assets under operating leases — (42.6 ) — — — (42.6 ) Property investments in MSLLC — — — (26.0 ) — (26.0 ) Insurance proceeds related to hurricane damage — — — — — — Investments in and advances to affiliates (0.6 ) — (0.6 ) (20.4 ) 1.2 (20.4 ) Proceeds from repayment of loans to affiliates 12,241.7 — — — (12,241.7 ) — Loans to affiliates (12,102.6 ) — — — 12,102.6 — Proceeds from disposal of property — 6.0 — 2.8 — 8.8 Other investing activities — (17.2 ) — (1.7 ) 3.4 (15.5 ) Net cash provided (used) 138.5 (429.0 ) (0.9 ) (255.2 ) (134.5 ) (681.1 ) Financing activities: Net short-term borrowings 159.0 — — — — 159.0 Proceeds from issuance of long-term debt — — — — — — Repayment of long-term debt — (3.5 ) (0.1 ) (21.8 ) — (25.4 ) Debt issuance and retirement costs paid — — — — — — Dividends paid (142.5 ) — — (12.5 ) 12.5 (142.5 ) Shares repurchased (375.6 ) — — — — (375.6 ) Proceeds from loans from affiliates — 12,102.6 — — (12,102.6 ) — Repayment of loans from affiliates — (12,241.7 ) — — 12,241.7 — Contributions from affiliates — — 0.6 0.6 (1.2 ) — Proceeds from employee stock plans 0.7 — — — — 0.7 Net cash provided (used) (358.4 ) (142.6 ) 0.5 (33.7 ) 150.4 (383.8 ) Cash and cash equivalents: Net increase (decrease) 0.5 (15.0 ) — (22.0 ) — (36.5 ) At beginning of year 0.2 32.6 — 137.8 — 170.6 At end of year $ 0.7 $ 17.6 $ — $ 115.8 $ — $ 134.1 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases, also known as Accounting Standard Codification (“ASC”) Topic 842, which requires lessees to recognize for all operating leases a right-of-use asset and a lease obligation in the consolidated balance sheet. Expenses are recognized in the consolidated statement of income in a manner similar to previous accounting guidance. Lessor accounting under the new standard is substantially unchanged and is immaterial to the Company. The Company adopted the accounting standard using a prospective transition approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented, with certain practical expedients available to ease the burden of adoption. The Company elected the following practical expedients upon adoption: not to reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, not to reassess initial direct costs for any existing leases, not to separately identify lease and nonlease components (i.e. maintenance costs) except for fleet vehicles and real estate, and not to evaluate historical land easements under the new guidance. Additionally, the Company elected the short-term lease exemption policy, applying the requirements of ASC 842 to long-term leases (leases greater than 1 year). Adoption of the new standard resulted in $175.2 million of additional right-of-use lease assets and lease liabilities as of January 1, 2019. The new standard did not have a significant impact on the consolidated statements of income. See Note 5 , Leases for additional information. |
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 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 primary performance obligation for the Company is to move customers’ freight from an origin to a destination. A performance obligation is created when a customer under a transportation contract or public tariff submits a bill of lading for the transport of goods. The Company recognizes revenue proportionally as a shipment moves from origin to destination, using the distance shipped to measure progress, as the customer simultaneously receives and consumes the benefit over time. Related expenses are recognized as incurred. Revenue associated with in-transit shipments at period end is recognized based on the distance shipped as of the balance sheet date. Payment is received at the time or shortly after the performance obligation is satisfied. The transaction price is generally in the form of a fixed fee determined at the inception of the transportation contract or the inception of the bill of lading. Certain customer agreements have variable consideration that are based on milestone achievements in the form of rebates, discounts or incentives. The Company makes judgments to determine whether the variable consideration is probable of occurring and should be included in the estimated transaction price at the beginning of the period to apply a more consistent rate throughout the year based on an analysis of historical experience with the customer, forecasted shipments and other economic indicators. The Company adjusts the estimate on a quarterly basis. |
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. |
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. |
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 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 performed depreciation studies for KCSR and KCSM in 2019. 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, is significant in amount, and varies significantly from the retirement profile identified through the depreciation studies. 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. |
Leases Policy | Leases. The Company leases transportation equipment, as well as office and other operating facilities, under various finance and operating leases. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the implicit rate is not readily determinable in most of the Company’s lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of approximately 1 year to 10 years, which may include the option to extend the lease when it is reasonably certain the Company will exercise that option. The Company does not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants. Additionally, short-term leases and leases with variable lease costs are immaterial, and the Company does not have any sublease arrangements. |
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, 2019 and 2018 , the goodwill balance was $13.2 million |
Investments and Impairment Policy | Investments and Impairment. |
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 recognizes liabilities for remediation and restoration costs when the Company’s obligation is probable and the costs can be reasonably estimated. Costs of future expenditures for environmental remediation and restoration 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 recognized 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 and is recognized over the requisite service period in which the award is earned. Forfeitures are recognized as they occur. 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 recognized under the asset and 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. 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. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses.” |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Expenses Related to PSR Initiatives | Expenses related to these initiatives are shown in the following table ( in millions ): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year-to-Date Restructuring charges: Asset impairments $ 62.5 $ 50.7 $ 8.6 $ 36.0 $ 157.8 Workforce reduction 3.2 — 3.4 0.4 $ 7.0 Contract restructuring 1.8 0.3 — 1.9 $ 4.0 Total restructuring charges $ 67.5 $ 51.0 $ 12.0 $ 38.3 $ 168.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Leases | Leases Classification December 31, 2019 ( in millions ) Assets Operating Operating lease right-of-use assets $ 158.4 Finance Property and equipment (including Concession assets), net 8.7 Total leased assets $ 167.1 Liabilities Current Operating Accounts payable and accrued liabilities $ 45.4 Finance Long-term debt due within one year 1.9 Noncurrent Operating Long-term operating lease liabilities 85.7 Finance Long-term debt 6.8 Total lease liabilities $ 139.8 |
Schedule of Lease Expense Components | Year ended Lease Cost Classification December 31, 2019 ( in millions ) Operating lease cost: Equipment costs $ 43.0 Materials and other 10.7 Finance lease cost: Amortization of finance lease assets Depreciation and amortization 2.7 Interest on lease liabilities Interest expense 1.1 Total lease cost $ 57.5 |
Schedule of Cash Flow Information | Cash Flow Information Cash paid for operating leases included in operating activities $ 58.7 Cash paid for finance leases included in operating activities 1.1 Cash paid for finance leases included in financing activities 2.7 Right-of-use assets obtained in exchange for operating lease liabilities 35.2 |
Schedule of Lease Term and Discount Rate | Lease Term and Discount Rate Weighted-Average Remaining Lease Term (years) Weighted-Average Discount Rate Operating leases 4.9 3.9 % Finance leases 3.9 11.1 % |
Schedule of Remaining Maturities of Lease Liabilities | Remaining Maturities of Lease Liabilities Year Ending December 31 ( in millions ), Operating Leases Finance Leases 2020 $ 50.3 $ 2.7 2021 31.0 2.7 2022 22.0 2.7 2023 16.2 2.4 2024 13.7 0.1 Thereafter 8.4 — Total lease payments 141.6 10.6 Less imputed interest 10.5 1.9 Total $ 131.1 $ 8.7 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents revenues disaggregated by the major commodity groups as well as the product types included within the major commodity groups (in millions) . The Company believes disaggregation by product type best depicts how cash flows are affected by economic factors. See Note 20 , Geographic Information in the consolidated financial statements for revenues by geographical area. Years ended December 31, 2019 (ASC 606) 2018 (ASC 606) 2017 (ASC 605) Chemical & Petroleum Chemicals $ 246.9 $ 236.3 $ 225.1 Petroleum 341.8 241.9 186.0 Plastics 148.5 143.9 128.8 Total 737.2 622.1 539.9 Industrial & Consumer Products Forest Products 261.4 268.0 255.8 Metals & Scrap 232.9 208.2 223.3 Other 116.1 114.8 109.2 Total 610.4 591.0 588.3 Agriculture & Minerals Grain 298.4 289.9 278.1 Food Products 149.4 145.7 151.1 Ores & Minerals 25.0 20.9 19.9 Stone, Clay & Glass 33.5 29.9 28.3 Total 506.3 486.4 477.4 Energy Utility Coal 126.9 117.3 166.3 Coal & Petroleum Coke 43.2 44.3 40.8 Frac Sand 27.4 37.4 51.8 Crude Oil 48.7 57.3 24.9 Total 246.2 256.3 283.8 Intermodal 370.2 382.8 363.8 Automotive 255.6 253.2 230.8 Total Freight Revenues 2,725.9 2,591.8 2,484.0 Other Revenue 140.1 122.2 98.9 Total Revenues $ 2,866.0 $ 2,714.0 $ 2,582.9 |
Schedule of Changes in Contract Liabilities | The following tables summarize the changes in contract liabilities (in millions) : Contract liabilities Years ended December 31, 2019 (ASC 606) 2018 (ASC 606) Beginning balance $ 32.4 $ 26.8 Revenue recognized that was included in the contract liability balance at the beginning of the period (32.4 ) (26.8 ) Increases due to consideration received, excluding amounts recognized as revenue during the period 30.5 32.4 Ending balance $ 30.5 $ 32.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) : 2019 2018 2017 Net income available to common stockholders for purposes of computing basic and diluted earnings per share $ 538.7 $ 627.2 $ 961.8 Weighted-average number of shares outstanding (in thousands) : Basic shares 99,316 101,852 104,728 Effect of dilution 431 418 312 Diluted shares 99,747 102,270 105,040 Earnings per share: Basic earnings per share $ 5.42 $ 6.16 $ 9.18 Diluted earnings per share $ 5.40 $ 6.13 $ 9.16 |
Schedule of Potentially Dilutive Shares Excluded from the Calculation | Potentially dilutive shares excluded from the calculation ( in thousands ): 2019 2018 2017 Stock options excluded as their inclusion would be anti-dilutive 121 117 150 |
Property and Equipment (inclu_2
Property and Equipment (including Concession Assets) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2019 Land $ 224.9 $ — $ 224.9 N/A Concession land rights 141.1 (29.4 ) 111.7 1.0 % Rail and other track material 2,122.9 (373.3 ) 1,749.6 1.8-3.2% Ties 1,738.4 (405.7 ) 1,332.7 1.4-5.0% Grading 991.5 (179.4 ) 812.1 1.1 % Bridges and tunnels 823.8 (163.0 ) 660.8 1.2 % Ballast 835.6 (236.4 ) 599.2 2.2-4.7% Other (a) 1,449.9 (438.5 ) 1,011.4 3.0 % Total road property 7,962.1 (1,796.3 ) 6,165.8 2.8 % Locomotives 1,593.9 (429.7 ) 1,164.2 5.2 % Freight cars 980.8 (196.6 ) 784.2 2.4 % Other equipment 77.9 (30.4 ) 47.5 4.5 % Total equipment 2,652.6 (656.7 ) 1,995.9 4.1 % Technology and other 345.1 (207.3 ) 137.8 16.3 % Construction in progress 170.2 — 170.2 N/A Total property and equipment (including Concession assets) $ 11,496.0 $ (2,689.7 ) $ 8,806.3 N/A _____________ (a) Other includes signals, buildings and other road assets. As of December 31, 2018 Cost Accumulated Depreciation Net Book Value Depreciation Rates for 2018 Land $ 219.3 $ — $ 219.3 N/A Concession land rights 141.1 (27.9 ) 113.2 1.0 % Rail and other track material 2,064.4 (296.3 ) 1,768.1 2.4-2.9% Ties 1,697.9 (465.6 ) 1,232.3 2.0-4.8% Grading 978.2 (169.4 ) 808.8 0.9 % Bridges and tunnels 803.9 (153.8 ) 650.1 1.1 % Ballast 799.9 (223.9 ) 576.0 2.5-4.2% Other (a) 1,367.2 (401.4 ) 965.8 3.2 % Total road property 7,711.5 (1,710.4 ) 6,001.1 2.8 % Locomotives 1,638.1 (436.3 ) 1,201.8 4.9 % Freight cars 1,034.1 (200.9 ) 833.2 2.7 % Other equipment 67.3 (29.0 ) 38.3 5.7 % Total equipment 2,739.5 (666.2 ) 2,073.3 4.1 % Technology and other 305.6 (173.9 ) 131.7 16.6 % Construction in progress 152.5 — 152.5 N/A Total property and equipment (including Concession assets) $ 11,269.5 $ (2,578.4 ) $ 8,691.1 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, 2019 | |
Other Balance Sheet Captions [Abstract] | |
Schedule of Other Current Assets | Other current assets included the following items at December 31 (in millions): 2019 2018 Refundable taxes $ 67.3 $ 11.2 Advances to affiliates 47.3 6.3 Mexican fuel excise tax credit — 30.9 Prepaid expenses 21.0 21.7 Other 19.4 3.3 Other current assets $ 155.0 $ 73.4 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities included the following items at December 31 (in millions): 2019 2018 Accounts payable $ 157.1 $ 180.5 Income and other taxes 34.4 35.2 Accrued wages and vacation 79.0 60.9 Short-term operating lease liability 45.4 — Derailments, personal injury and other claim provisions 38.5 44.0 Dividends payable 38.7 36.4 Contract liabilities 30.5 32.4 Interest payable 23.1 20.1 Other 26.6 27.4 Accounts payable and accrued liabilities $ 473.3 $ 436.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of the Company's Financial Instruments | The fair value of the Company’s financial instruments is presented in the following table (in millions) : December 31, 2019 December 31, 2018 Level 2 Level 2 Assets Foreign currency derivative instruments $ 2.5 $ 0.3 Liabilities Debt instruments 3,535.7 2,661.3 Treasury lock agreements — 2.0 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Derivative Instruments | Below is a summary of the Company’s 2019, 2018 and 2017 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) Notional amount Notional amount Weighted-average exchange rate (in Ps./USD) Cash received/(paid) on settlement Contracts executed in 2019 and outstanding at December 31, 2019 $ 105.0 Ps. 2,041.2 Ps. 19.4 — — — — Contracts executed in 2019 and settled in 2019 $ 400.0 Ps. 7,892.5 Ps. 19.7 $ 410.7 Ps. 7,892.5 Ps. 19.2 $ 10.7 Contracts executed in 2018 and settled in 2019 $ 20.0 Ps. 410.9 Ps. 20.5 $ 20.9 Ps. 410.9 Ps. 19.6 $ 0.9 Contracts executed in 2016 and settled in 2017 $ 340.0 Ps. 6,207.7 Ps. 18.3 $ 287.0 Ps. 6,207.7 Ps. 21.6 $ (53.0 ) Foreign currency zero-cost collar contracts Notional amount Cash received/(paid) on settlement Contracts executed in 2018 and settled in 2019 $ 120.0 $ 0.3 Contracts executed in 2018 and settled in 2018 $ 220.0 $ 3.9 Contracts executed in 2017 and settled in 2018 $ 80.0 $ 10.0 Contracts executed in 2017 and settled in 2017 $ 450.0 $ 42.2 |
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 Assets Balance Sheet Location 2019 2018 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 2.5 $ — Foreign currency zero-cost collar contracts Other current assets — 0.3 Total derivatives not designated as hedging instruments 2.5 0.3 Total derivative assets $ 2.5 $ 0.3 Derivative Liabilities Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Treasury lock agreements Other noncurrent liabilities and deferred credits — 2.0 Total derivatives designated as hedging instruments — 2.0 Total derivative liabilities $ — $ 2.0 |
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | The following tables present the effects of derivative instruments on the consolidated statements of income and consolidated statements of comprehensive income for the years ended December 31 (in millions) : Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in OCI on Derivative Location of Gain/(Loss) Reclassified from AOCI into Income Amount of Gain/(Loss) Reclassified from AOCI into Income 2019 2018 2017 2019 2018 2017 Treasury lock agreements $ (23.8 ) $ 3.6 $ (5.6 ) Interest expense $ (0.2 ) $ — $ — Total $ (23.8 ) $ 3.6 $ (5.6 ) $ (0.2 ) $ — $ — Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative 2019 2018 2017 Foreign currency forward contracts Foreign exchange gain $ 14.1 $ — $ (11.9 ) Foreign currency zero-cost collar contracts Foreign exchange gain — 6.3 50.1 Total $ 14.1 $ 6.3 $ 38.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt at December 31 (in millions): 2019 2018 Principal Unamortized Discount and Debt Issuance Costs Net Principal Unamortized Discount and Debt Issuance Costs Net Revolving credit facilities, variable interest rate, due 2024 $ — $ — $ — $ — $ — $ — KCS 2.35% senior notes, due 2020 — — — 257.3 0.7 256.6 KCS 3.00% senior notes, due 2023 439.1 2.5 436.6 439.1 3.2 435.9 KCS 3.85% senior notes, due 2023 199.2 1.1 198.1 199.2 1.4 197.8 KCS 3.125% senior notes, due 2026 250.0 2.4 247.6 250.0 2.7 247.3 KCS 2.875% senior notes, due 2029 425.0 4.2 420.8 — — — KCS 4.30% senior notes, due 2043 448.7 8.8 439.9 448.7 9.1 439.6 KCS 4.95% senior notes, due 2045 499.2 7.2 492.0 499.2 7.4 491.8 KCS 4.70% senior notes, due 2048 500.0 6.0 494.0 500.0 6.2 493.8 KCS 4.20% senior notes, due 2069 425.0 7.0 418.0 — — — KCSR 3.85% to 4.95% senior notes, due through 2045 2.7 — 2.7 2.7 — 2.7 KCSM 2.35% to 3.00% senior notes, due through 2023 5.6 — 5.6 23.2 0.1 23.1 RRIF loans 2.96% to 4.29%, due serially through 2037 70.2 0.4 69.8 74.1 0.4 73.7 Financing agreements 9.311%, due serially through 2020 12.0 — 12.0 15.5 — 15.5 Finance lease obligations, due serially to 2024 8.7 — 8.7 11.4 — 11.4 Other debt obligations 0.2 — 0.2 0.2 — 0.2 Total 3,285.6 39.6 3,246.0 2,720.6 31.2 2,689.4 Less: Debt due within one year 18.0 — 18.0 10.1 — 10.1 Long-term debt $ 3,267.6 $ 39.6 $ 3,228.0 $ 2,710.5 $ 31.2 $ 2,679.3 |
Schedule Of Future Minimum Payments For Long-Term Debt | Minimum annual payments for debt maturities are as follows (in millions) : Years Long-Term Debt Net Present Value Finance Leases Total 2020 $ 16.1 $ 1.9 $ 18.0 2021 4.2 2.1 6.3 2022 4.3 2.3 6.6 2023 649.1 2.3 651.4 2024 4.6 0.1 4.7 Thereafter 2,598.6 — 2,598.6 Total $ 3,276.9 $ 8.7 $ 3,285.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Tax Expense (Benefit). Income tax expense (benefit) consists of the following components (in millions): 2019 2018 2017 Current: Federal $ 22.3 $ (10.5 ) $ 47.3 State and local 1.8 0.7 0.6 Foreign 170.4 175.6 163.8 Total current 194.5 165.8 211.7 Deferred: Federal 27.5 77.6 (350.1 ) State and local 14.8 9.1 11.9 Foreign 10.8 5.0 36.9 Total deferred 53.1 91.7 (301.3 ) Total income tax expense (benefit) $ 247.6 $ 257.5 $ (89.6 ) |
Schedule of Income before Income Taxes, Domestic and Foreign | Income before income taxes consists of the following (in millions) : 2019 2018 2017 Income before income taxes: U.S. $ 250.3 $ 366.2 $ 331.8 Foreign 538.1 520.7 542.5 Total income before income taxes $ 788.4 $ 886.9 $ 874.3 |
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 at December 31 follow (in millions): 2019 2018 Assets: Reserves not currently deductible for tax $ 36.8 $ 36.6 Lease liability 35.1 — Compensation and benefits 23.1 20.9 Tax credit and loss carryovers 21.5 28.9 Other 22.4 16.9 Gross deferred tax assets before valuation allowance 138.9 103.3 Valuation allowance (4.4 ) (2.3 ) Net deferred tax assets 134.5 101.0 Liabilities: Property (1,181.3 ) (1,099.2 ) Investments (52.4 ) (49.7 ) Other (28.8 ) (32.0 ) Gross deferred tax liabilities (1,262.5 ) (1,180.9 ) Net deferred tax liability $ (1,128.0 ) $ (1,079.9 ) |
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 21% for 2019 and 2018 and 35% for 2017 follow (in millions): 2019 2018 2017 Dollars Percent Dollars Percent Dollars Percent Income tax expense using the statutory rate in effect $ 165.6 21.0 % $ 186.2 21.0 % $ 306.0 35.0 % Tax effect of: Difference between U.S. and foreign tax rate 47.6 6.0 % 46.1 5.2 % (26.6 ) (3.0 %) Foreign exchange (i) 35.9 4.6 % 21.8 2.5 % 31.6 3.6 % Tax credits (16.8 ) (2.1 %) (14.2 ) (1.6 %) (8.4 ) (1.0 %) Mexican fuel excise tax credit, net (ii) (12.8 ) (1.6 %) — — — — State and local income tax provision, net 11.5 1.5 % 7.5 0.8 % 8.3 1.0 % Withholding tax 9.5 1.2 % 11.2 1.3 % 8.1 0.9 % Global intangible low-taxed income (“GILTI”) tax, net 2.7 0.3 % 11.8 1.3 % — — Change in U.S. tax rate — — (2.2 ) (0.3 %) (487.6 ) (55.8 %) Deemed mandatory repatriation — — (18.7 ) (2.1 %) 74.6 8.6 % Other, net 4.4 0.5 % 8.0 0.9 % 4.4 0.5 % Income tax expense (benefit) $ 247.6 31.4 % $ 257.5 29.0 % $ (89.6 ) (10.2 %) _____________________ (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 gain (loss) within the consolidated statements of income. Refer to Note 12 , Derivative Instruments in the consolidated financial statements for further information. (ii) For further discussion of the Mexican fuel excise tax credit, refer to Note 4, Mexican fuel excise tax credit. |
Schedule of Change in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ( in millions ): 2019 2018 Balance at January 1, $ 2.2 $ — Additions for tax positions of prior years — 2.2 Balance at December 31, $ 2.2 $ 2.2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Capital Stock | Information regarding the Company’s capital stock at December 31 follows: Shares Authorized Shares Issued 2019 2018 2019 2018 $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: 2019 2018 $25 par, 4% noncumulative, preferred stock 222,625 228,395 $.01 par, common stock 96,115,669 100,896,678 |
Schedule of Terms of Accelerated Share Repurchase Agreements | The terms of the ASR agreements, structured as outlined above, were as follows: Third Party Institution Agreement Date Total Amount of Agreement (in millions) Initial Shares Delivered Fair Market Value of Initial Shares (in millions) Weighted-Average Price Per Share ASR Agreement #1 November 2019 $ 275.0 1,511,380 $ 233.75 $ 154.66 ASR Agreement #2 November 2019 $ 275.0 1,511,380 $ 233.75 $ 154.66 Total $ 550.0 3,022,760 $ 467.5 $ 154.66 |
Schedule of Treasury Stock | Shares of common stock in treasury and related activity follow: 2019 2018 2017 Balance at beginning of year 22,455,507 20,315,380 16,745,566 Shares repurchased 5,076,530 2,272,213 3,759,678 Shares issued to fund stock option exercises (109,560 ) (24,024 ) (9,110 ) Employee stock purchase plan shares issued (72,707 ) (62,866 ) (76,401 ) Nonvested shares issued (124,031 ) (51,191 ) (124,519 ) Nonvested shares forfeited 10,777 5,995 20,166 Balance at end of year 27,236,516 22,455,507 20,315,380 |
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: 2019 2018 2017 Cash dividends declared per common share $ 1.48 $ 1.44 $ 1.38 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Stock Option Valuation Assumptions | The weighted-average assumptions used were as follows: 2019 2018 2017 Expected dividend yield 1.33 % 1.36 % 1.52 % Expected volatility 26.38 % 27.09 % 30.74 % Risk-free interest rate 2.64 % 2.80 % 2.20 % Expected term (years) 5.7 6.0 6.0 Weighted-average grant date fair value of stock options granted $ 27.70 $ 28.52 $ 24.49 |
Schedule of 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, 2018 564,515 $ 83.24 Granted 142,348 108.00 Exercised (109,560 ) 63.57 Forfeited or expired (789 ) 104.48 Options outstanding at December 31, 2019 596,514 $ 92.73 6.2 $ 36.0 Exercisable at December 31, 2019 391,685 $ 86.42 4.9 $ 26.1 |
Schedule of Stock Option Exercise Activity | Additional information regarding stock option exercises appears in the table below (in millions) : 2019 2018 2017 Aggregate grant-date fair value of stock options vested $ 3.0 $ 1.9 $ 2.8 Intrinsic value of stock options exercised 7.2 1.0 0.2 Cash received from option exercises 7.0 1.8 0.7 Tax benefit from options exercised during the annual period 1.8 0.2 0.1 |
Schedule of 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, 2018 257,621 $ 96.61 Granted 96,163 114.69 Vested (122,812 ) 101.67 Forfeited (10,777 ) 102.44 Nonvested stock at December 31, 2019 220,195 $ 101.40 $ 33.7 |
Schedule of Performance Based Nonvested Stock 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, 2018 152,979 $ 91.74 Granted 50,681 110.13 Vested (51,072 ) 82.71 Forfeited (4,403 ) 104.47 Nonvested stock, at December 31, 2019 148,185 $ 100.76 _____________________ * For the 2019 Awards and the 2018 Awards, participants in the aggregate can earn up to a maximum of 96,998 and 96,774 shares, respectively. For the 2017 Awards, the performance shares earned were 87,092 . |
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 2019 offering January 3, 2020 $ 104.83 27,949 $ 2.9 January 2019 offering July 2, 2019 81.83 36,735 3.0 July 2018 offering January 3, 2019 81.13 35,972 2.9 January 2018 offering July 2, 2018 90.07 32,271 2.9 July 2017 offering January 4, 2018 89.18 30,595 2.7 January 2017 offering July 5, 2017 68.70 40,293 2.8 _____________________ (i) Represents amounts received from employees through payroll deductions for share purchases under applicable offering. |
Schedule of Employee Stock Purchase Plan Valuation Assumptions | The weighted-average assumptions used for each of the respective periods were as follows: Year Ended December 31, 2019 2018 2017 Expected dividend yield 1.36 % 1.22 % 1.47 % Expected volatility 17.43 % 13.29 % 17.09 % Risk-free interest rate 2.31 % 1.73 % 0.89 % Expected term (years) 0.5 0.5 0.5 Weighted-average grant date fair value $ 21.56 $ 18.66 $ 17.90 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Personal Injury Liability Activity | The personal injury liability activity was as follows (in millions): 2019 2018 Balance at beginning of year $ 19.6 $ 19.3 Accruals 6.3 5.3 Changes in estimate 0.2 2.4 Payments (5.2 ) (7.4 ) Balance at end of year $ 20.9 $ 19.6 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Fourth Third Second First (In millions, except per share amounts) 2019 Revenues $ 729.5 $ 747.7 $ 714.0 $ 674.8 Operating income (i) 236.0 282.0 208.0 160.3 Net income (iii) 127.9 180.6 129.1 103.2 Net income attributable to Kansas City Southern and subsidiaries 127.2 180.2 128.7 102.8 Per share data: Basic earnings per common share $ 1.31 $ 1.81 $ 1.29 $ 1.02 Diluted earnings per common share 1.30 1.81 1.28 1.02 2018 Revenues $ 694.0 $ 699.0 $ 682.4 $ 638.6 Operating income (ii)(iv) 256.4 265.4 245.8 218.7 Net income (v) 161.8 174.0 148.7 144.9 Net income attributable to Kansas City Southern and subsidiaries 161.1 173.6 148.2 144.5 Per share data: Basic earnings per common share $ 1.59 $ 1.71 $ 1.45 $ 1.41 Diluted earnings per common share 1.59 1.70 1.45 1.40 _____________________ (i) During the first, second, third and fourth quarters of 2019, the Company recognized pre-tax restructuring charges of $67.5 million , $51.0 million , $12.0 million and $38.3 million , respectively, within operating expenses related to the implementation of PSR initiatives. (ii) During the first, second, third, and fourth quarters of 2018, the Company recognized a pre-tax benefit of $9.2 million , $8.0 million , $9.4 million , and $11.1 million , respectively, within operating expenses related to a credit that was available for the excise tax included in the price of fuel that was purchased and consumed in locomotives and certain work equipment in Mexico. Effective January 1, 2019, the Company began recognizing the benefit as a reduction of income tax expense due to changes in Mexican tax law; and beginning April 30, 2019, railroads in Mexico are no longer eligible for the tax credit due to changes in Mexican tax regulations. (iii) During the first, second, third, and fourth quarters of 2019, the Company recognized, net, a tax benefit of $6.8 million , expense of $1.9 million , and benefits of $3.7 million , and $4.2 million , respectively, related to the Mexican fuel excise tax credit generated through April 29, 2019, noted in (ii) above. (iv) During the third and fourth quarters of 2018, the Company recognized a pre-tax gain of $9.4 million and $8.5 million , respectively, within operating expense for insurance recoveries related to damage from Hurricane Harvey in 2017. (v) During the second and third quarters of 2018, the Company recognized discrete tax benefits of $4.3 million and $16.6 million , respectively, for adjustments to the provisional tax impacts of the Tax Reform Act. |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Revenues U.S. $ 1,493.5 $ 1,424.8 $ 1,359.5 Mexico 1,372.5 1,289.2 1,223.4 Total revenues $ 2,866.0 $ 2,714.0 $ 2,582.9 December 31, 2019 2018 Property and equipment (including Concession assets), net U.S. $ 5,435.9 $ 5,401.3 Mexico 3,370.4 3,289.8 Total property and equipment (including Concession assets), net $ 8,806.3 $ 8,691.1 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Consolidating Financial Information [Abstract] | |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income 2019 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,325.8 $ 42.7 $ 1,541.4 $ (43.9 ) $ 2,866.0 Operating expenses 5.3 1,044.7 37.6 934.7 (42.6 ) 1,979.7 Operating income (loss) (5.3 ) 281.1 5.1 606.7 (1.3 ) 886.3 Equity in net earnings (losses) of affiliates 548.7 (1.1 ) 3.7 (0.3 ) (550.0 ) 1.0 Interest expense (109.7 ) (85.4 ) — (28.0 ) 107.2 (115.9 ) Debt retirement costs (0.7 ) (0.2 ) — (0.2 ) — (1.1 ) Foreign exchange gain — — — 17.1 — 17.1 Other income (expense), net 107.5 (1.1 ) — 2.0 (107.4 ) 1.0 Income before income taxes 540.5 193.3 8.8 597.3 (551.5 ) 788.4 Income tax expense 1.6 44.4 0.7 201.3 (0.4 ) 247.6 Net income 538.9 148.9 8.1 396.0 (551.1 ) 540.8 Less: Net income attributable to noncontrolling interest — — — 1.9 — 1.9 Net income attributable to Kansas City Southern and subsidiaries 538.9 148.9 8.1 394.1 (551.1 ) 538.9 Other comprehensive income (loss) (18.2 ) — — 0.5 (0.5 ) (18.2 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 520.7 $ 148.9 $ 8.1 $ 394.6 $ (551.6 ) $ 520.7 Condensed Consolidating Statements of Comprehensive Income—(Continued) 2018 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,279.2 $ 45.2 $ 1,433.5 $ (43.9 ) $ 2,714.0 Operating expenses 5.2 877.2 38.7 848.4 (41.8 ) 1,727.7 Operating income (loss) (5.2 ) 402.0 6.5 585.1 (2.1 ) 986.3 Equity in net earnings (losses) of affiliates 635.6 (1.1 ) 4.5 0.3 (636.7 ) 2.6 Interest expense (96.1 ) (78.8 ) — (28.6 ) 93.5 (110.0 ) Debt retirement costs — — — (2.2 ) — (2.2 ) Foreign exchange gain — — — 7.8 — 7.8 Other income, net 92.5 1.6 — 1.9 (93.6 ) 2.4 Income before income taxes 626.8 323.7 11.0 564.3 (638.9 ) 886.9 Income tax expense (benefit) (0.6 ) 69.7 2.6 186.3 (0.5 ) 257.5 Net income 627.4 254.0 8.4 378.0 (638.4 ) 629.4 Less: Net income attributable to noncontrolling interest — — — 2.0 — 2.0 Net income attributable to Kansas City Southern and subsidiaries 627.4 254.0 8.4 376.0 (638.4 ) 627.4 Other comprehensive income 2.7 — — 0.1 (0.1 ) 2.7 Comprehensive income attributable to Kansas City Southern and subsidiaries $ 630.1 $ 254.0 $ 8.4 $ 376.1 $ (638.5 ) $ 630.1 Condensed Consolidating Statements of Comprehensive Income—(Continued) 2017 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Revenues $ — $ 1,220.8 $ 43.5 $ 1,359.0 $ (40.4 ) $ 2,582.9 Operating expenses 5.7 862.8 39.1 791.0 (37.3 ) 1,661.3 Operating income (loss) (5.7 ) 358.0 4.4 568.0 (3.1 ) 921.6 Equity in net earnings of affiliates 974.8 19.0 4.5 9.6 (996.4 ) 11.5 Interest expense (81.3 ) (72.2 ) — (34.4 ) 87.7 (100.2 ) Debt retirement costs — — — — — — Foreign exchange gain — — — 41.7 — 41.7 Other income (expense), net 86.7 (0.6 ) — 1.2 (87.6 ) (0.3 ) Income before income taxes 974.5 304.2 8.9 586.1 (999.4 ) 874.3 Income tax expense (benefit) 9.9 (310.6 ) (42.5 ) 254.2 (0.6 ) (89.6 ) Net income 964.6 614.8 51.4 331.9 (998.8 ) 963.9 Less: Net income attributable to noncontrolling interest — — — 1.9 — 1.9 Net income attributable to Kansas City Southern and subsidiaries 964.6 614.8 51.4 330.0 (998.8 ) 962.0 Other comprehensive income (loss) (6.7 ) — — 0.5 (0.5 ) (6.7 ) Comprehensive income attributable to Kansas City Southern and subsidiaries $ 957.9 $ 614.8 $ 51.4 $ 330.5 $ (999.3 ) $ 955.3 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets December 31, 2019 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 214.7 $ 534.3 $ 5.3 $ 406.2 $ (431.9 ) $ 728.6 Operating lease right-of-use assets — 124.5 — 37.7 (3.8 ) 158.4 Investments — 3.5 9.5 34.6 — 47.6 Investments in consolidated subsidiaries 5,201.4 1.9 203.0 — (5,406.3 ) — Property and equipment (including Concession assets), net — 4,440.0 158.8 4,217.1 (9.6 ) 8,806.3 Other assets 2,526.2 16.2 — 26.4 (2,522.9 ) 45.9 Total assets $ 7,942.3 $ 5,120.4 $ 376.6 $ 4,722.0 $ (8,374.5 ) $ 9,786.8 Liabilities and equity: Current liabilities $ 365.5 $ 250.1 $ 68.8 $ 241.2 $ (434.3 ) $ 491.3 Long-term operating lease liabilities — 64.7 — 23.9 (2.9 ) 85.7 Long-term debt 3,147.2 1,826.8 — 777.0 (2,523.0 ) 3,228.0 Deferred income taxes (6.1 ) 844.8 85.5 206.2 (2.4 ) 1,128.0 Other liabilities 13.2 76.2 0.2 18.3 — 107.9 Stockholders’ equity 4,422.5 2,057.8 222.1 3,132.0 (5,411.9 ) 4,422.5 Noncontrolling interest — — — 323.4 — 323.4 Total liabilities and equity $ 7,942.3 $ 5,120.4 $ 376.6 $ 4,722.0 $ (8,374.5 ) $ 9,786.8 Condensed Consolidating Balance Sheets—(Continued) December 31, 2018 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Assets: Current assets $ 229.8 $ 257.6 $ 5.0 $ 350.4 $ (207.4 ) $ 635.4 Operating lease right-of-use assets — — — — — — Investments — 3.9 4.4 36.6 — 44.9 Investments in consolidated subsidiaries 4,852.8 4.4 190.2 — (5,047.4 ) — Property and equipment (including Concession assets), net — 4,429.2 165.1 4,104.8 (8.0 ) 8,691.1 Other assets 2,523.4 59.3 — 36.8 (2,521.1 ) 98.4 Total assets $ 7,606.0 $ 4,754.4 $ 364.7 $ 4,528.6 $ (7,783.9 ) $ 9,469.8 Liabilities and equity: Current liabilities $ 214.2 $ 109.2 $ 80.1 $ 252.3 $ (208.8 ) $ 447.0 Long-term operating lease liabilities — — — — — — Long-term debt 2,563.0 1,828.8 — 808.5 (2,521.0 ) 2,679.3 Deferred income taxes (4.4 ) 812.8 84.7 188.8 (2.0 ) 1,079.9 Other liabilities 20.2 94.8 0.2 15.8 (0.1 ) 130.9 Stockholders’ equity 4,813.0 1,908.8 199.7 2,943.5 (5,052.0 ) 4,813.0 Noncontrolling interest — — — 319.7 — 319.7 Total liabilities and equity $ 7,606.0 $ 4,754.4 $ 364.7 $ 4,528.6 $ (7,783.9 ) $ 9,469.8 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows 2019 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 354.4 $ 375.4 $ 1.0 $ 587.7 $ (215.0 ) $ 1,103.5 Investing activities: Capital expenditures — (278.8 ) (1.0 ) (307.4 ) — (587.2 ) Purchase or replacement of assets under operating leases — (38.4 ) — (0.6 ) — (39.0 ) Property investments in MSLLC — — — (27.5 ) — (27.5 ) Insurance proceeds related to hurricane damage — — — — — — Investments in and advances to affiliates (14.3 ) — (14.3 ) (31.4 ) 23.3 (36.7 ) Proceeds from repayment of loans to affiliates 147.0 — — 130.0 (277.0 ) — Loans to affiliates (147.0 ) — — (130.0 ) 277.0 — Proceeds from disposal of property — 17.8 — 4.3 — 22.1 Other investing activities — (12.5 ) — 2.6 1.9 (8.0 ) Net cash used (14.3 ) (311.9 ) (15.3 ) (360.0 ) 25.2 (676.3 ) Financing activities: Net short-term borrowings — — — — — — Proceeds from issuance of long-term debt 847.5 — — — — 847.5 Repayment of long-term debt (257.4 ) (2.8 ) — (24.8 ) — (285.0 ) Debt issuance and retirement costs paid (9.1 ) (1.2 ) — (1.3 ) — (11.6 ) Dividends paid (144.3 ) — — (213.1 ) 213.1 (144.3 ) Shares repurchased (792.5 ) — — — — (792.5 ) Proceeds from loans from affiliates 130.0 147.0 — — (277.0 ) — Repayment of loans from affiliates (130.0 ) (147.0 ) — — 277.0 — Contributions from affiliates — — 14.3 9.0 (23.3 ) — Proceeds from employee stock plans 7.0 — — — — 7.0 Net cash provided (used) (348.8 ) (4.0 ) 14.3 (230.2 ) 189.8 (378.9 ) Cash and cash equivalents: Net increase (decrease) (8.7 ) 59.5 — (2.5 ) — 48.3 At beginning of year 41.5 28.1 — 30.9 — 100.5 At end of year $ 32.8 $ 87.6 $ — $ 28.4 $ — $ 148.8 Condensed Consolidating Statements of Cash Flows—(Continued) 2018 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 223.8 $ 460.9 $ 1.2 $ 501.3 $ (241.5 ) $ 945.7 Investing activities: Capital expenditures — (244.8 ) (1.1 ) (274.4 ) — (520.3 ) Purchase or replacement of assets under operating leases — (88.4 ) — (10.5 ) — (98.9 ) Property investments in MSLLC — — — (26.1 ) — (26.1 ) Insurance proceeds related to hurricane damage — 7.6 — — — 7.6 Investments in and advances to affiliates (7.8 ) — (7.8 ) (15.2 ) 11.6 (19.2 ) Proceeds from repayment of loans to affiliates 4,584.5 — — 125.0 (4,709.5 ) — Loans to affiliates (4,515.6 ) — — (125.0 ) 4,640.6 — Proceeds from disposal of property — 4.1 — 4.6 — 8.7 Other investing activities — (6.1 ) — — 2.4 (3.7 ) Net cash provided (used) 61.1 (327.6 ) (8.9 ) (321.6 ) (54.9 ) (651.9 ) Financing activities: Net short-term borrowings (348.1 ) — — — — (348.1 ) Proceeds from issuance of long-term debt 499.4 — — — — 499.4 Repayment of long-term debt — (3.9 ) (0.1 ) (77.5 ) — (81.5 ) Debt issuance and retirement costs paid (6.2 ) — — (1.8 ) — (8.0 ) Dividends paid (147.5 ) — — (239.1 ) 239.1 (147.5 ) Shares repurchased (243.5 ) — — — — (243.5 ) Proceeds from loans from affiliates 125.0 4,465.6 — 50.0 (4,640.6 ) — Repayment of loans from affiliates (125.0 ) (4,584.5 ) — — 4,709.5 — Contributions from affiliates — — 7.8 3.8 (11.6 ) — Proceeds from employee stock plans 1.8 — — — — 1.8 Net cash provided (used) (244.1 ) (122.8 ) 7.7 (264.6 ) 296.4 (327.4 ) Cash and cash equivalents: Net increase (decrease) 40.8 10.5 — (84.9 ) — (33.6 ) At beginning of year 0.7 17.6 — 115.8 — 134.1 At end of year $ 41.5 $ 28.1 $ — $ 30.9 $ — $ 100.5 Condensed Consolidating Statements of Cash Flows—(Continued) 2017 Parent KCSR Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated KCS Operating activities: Net cash provided $ 220.4 $ 556.6 $ 0.4 $ 266.9 $ (15.9 ) $ 1,028.4 Investing activities: Capital expenditures — (375.2 ) (0.3 ) (209.9 ) — (585.4 ) Purchase or replacement of assets under operating leases — (42.6 ) — — — (42.6 ) Property investments in MSLLC — — — (26.0 ) — (26.0 ) Insurance proceeds related to hurricane damage — — — — — — Investments in and advances to affiliates (0.6 ) — (0.6 ) (20.4 ) 1.2 (20.4 ) Proceeds from repayment of loans to affiliates 12,241.7 — — — (12,241.7 ) — Loans to affiliates (12,102.6 ) — — — 12,102.6 — Proceeds from disposal of property — 6.0 — 2.8 — 8.8 Other investing activities — (17.2 ) — (1.7 ) 3.4 (15.5 ) Net cash provided (used) 138.5 (429.0 ) (0.9 ) (255.2 ) (134.5 ) (681.1 ) Financing activities: Net short-term borrowings 159.0 — — — — 159.0 Proceeds from issuance of long-term debt — — — — — — Repayment of long-term debt — (3.5 ) (0.1 ) (21.8 ) — (25.4 ) Debt issuance and retirement costs paid — — — — — — Dividends paid (142.5 ) — — (12.5 ) 12.5 (142.5 ) Shares repurchased (375.6 ) — — — — (375.6 ) Proceeds from loans from affiliates — 12,102.6 — — (12,102.6 ) — Repayment of loans from affiliates — (12,241.7 ) — — 12,241.7 — Contributions from affiliates — — 0.6 0.6 (1.2 ) — Proceeds from employee stock plans 0.7 — — — — 0.7 Net cash provided (used) (358.4 ) (142.6 ) 0.5 (33.7 ) 150.4 (383.8 ) Cash and cash equivalents: Net increase (decrease) 0.5 (15.0 ) — (22.0 ) — (36.5 ) At beginning of year 0.2 32.6 — 137.8 — 170.6 At end of year $ 0.7 $ 17.6 $ — $ 115.8 $ — $ 134.1 |
Description of the Business (De
Description of the Business (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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% |
TCM [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 45.00% |
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 | 70.00% |
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 | 75.00% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Additional right-of-use lease assets recognized as a result of adoption of ASU 2016-02 | $ 175.2 | |||
Additional lease liabilities recognized as a result of adoption of ASU 2016-02 | $ 175.2 | |||
Allowance for doubtful accounts | $ 7 | $ 4.1 | ||
Bad debt expense | 0.4 | 0.3 | $ 1.6 | |
Other Assets [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Goodwill | $ 13.2 | $ 13.2 | ||
Minimum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating and finance leases, remaining lease terms | 1 year | |||
Maximum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating and finance leases, remaining lease terms | 10 years |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Impairment and Restructuring Costs [Line Items] | |||||||
Restructuring charges | $ 38.3 | $ 12 | $ 51 | $ 67.5 | $ 168.8 | $ 0 | $ 0 |
PSR Initiatives [Member] | |||||||
Asset Impairment and Restructuring Costs [Line Items] | |||||||
Restructuring charges | 38.3 | 12 | 51 | 67.5 | 168.8 | ||
PSR Initiatives [Member] | Asset Impairments [Member] | |||||||
Asset Impairment and Restructuring Costs [Line Items] | |||||||
Restructuring charges | 36 | 8.6 | 50.7 | 62.5 | 157.8 | ||
PSR Initiatives [Member] | Workforce Reduction [Member] | |||||||
Asset Impairment and Restructuring Costs [Line Items] | |||||||
Restructuring charges | 0.4 | 3.4 | 0 | 3.2 | 7 | ||
PSR Initiatives [Member] | Contract Restructuring [Member] | |||||||
Asset Impairment and Restructuring Costs [Line Items] | |||||||
Restructuring charges | $ 1.9 | $ 0 | $ 0.3 | $ 1.8 | $ 4 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - PSR Initiatives [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)locomotivesfreight_carsrestructuring_plans | |
Asset Impairment and Restructuring Costs [Line Items] | |
Number of separate restructuring plans approved by management | restructuring_plans | 4 |
Other Current Assets [Member] | |
Asset Impairment and Restructuring Costs [Line Items] | |
Carrying amount of remaining assets held for sale | $ | $ 11.3 |
Locomotives [Member] | |
Asset Impairment and Restructuring Costs [Line Items] | |
Number of units sold | locomotives | 66 |
Number of units identified for sale | locomotives | 127 |
Freight Cars [Member] | |
Asset Impairment and Restructuring Costs [Line Items] | |
Number of units sold | freight_cars | 1,467 |
Number of units identified for sale | freight_cars | 2,011 |
Mexican Fuel Excise Tax Credit
Mexican Fuel Excise Tax Credit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Mexican Fuel Excise Tax Credit [Line Items] | |||||
Mexican fuel excise tax credit, income tax expense reduction | $ 4.2 | $ 3.7 | $ (1.9) | $ 6.8 | |
Income Tax Expense (Benefit) [Member] | |||||
Mexican Fuel Excise Tax Credit [Line Items] | |||||
Mexican fuel excise tax credit, income tax expense reduction | $ 12.8 |
Leases Narrative (Details)
Leases Narrative (Details) - Operating Leases [Member] $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Additional operating leases not yet commenced | $ 3.3 |
Additional operating leases not yet commenced, lease terms | 5 years |
Leases Lease Assets and Liabili
Leases Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Operating | $ 158.4 | $ 0 |
Total leased assets | 167.1 | |
Liabilities, Current | ||
Operating | 45.4 | 0 |
Liabilities, Noncurrent | ||
Operating | 85.7 | $ 0 |
Total lease liabilities | 139.8 | |
Operating lease right-of-use assets [Member] | ||
Assets | ||
Operating | 158.4 | |
Property and equipment (including concession assets), net [Member] | ||
Assets | ||
Finance | 8.7 | |
Accounts payable and accrued liabilities [Member] | ||
Liabilities, Current | ||
Operating | 45.4 | |
Long-term debt due within one year [Member] | ||
Liabilities, Current | ||
Finance | 1.9 | |
Long-term operating lease liabilities [Member] | ||
Liabilities, Noncurrent | ||
Operating | 85.7 | |
Long-term debt [Member] | ||
Liabilities, Noncurrent | ||
Finance | $ 6.8 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost [Line Items] | |
Total lease cost | $ 57.5 |
Equipment costs [Member] | |
Lease Cost [Line Items] | |
Operating lease cost | 43 |
Materials and other [Member] | |
Lease Cost [Line Items] | |
Operating lease cost | 10.7 |
Depreciation and amortization [Member] | |
Lease Cost [Line Items] | |
Amortization of finance lease assets | 2.7 |
Interest expense [Member] | |
Lease Cost [Line Items] | |
Interest on lease liabilities | $ 1.1 |
Leases Cash Flow Information (D
Leases Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating leases included in operating activities | $ 58.7 |
Cash paid for finance leases included in operating activities | 1.1 |
Cash paid for finance leases included in financing activities | 2.7 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 35.2 |
Leases Lease Term and Discount
Leases Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Weighted-Average Remaining Lease Term | |
Operating leases | 4 years 10 months 24 days |
Finance leases | 3 years 10 months 24 days |
Weighted-Average Discount Rate | |
Operating leases | 3.90% |
Finance leases | 11.10% |
Leases Remaining Maturities of
Leases Remaining Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 50.3 |
2021 | 31 |
2022 | 22 |
2023 | 16.2 |
2024 | 13.7 |
Thereafter | 8.4 |
Total lease payments | 141.6 |
Less imputed interest | 10.5 |
Total | 131.1 |
Finance Leases | |
2020 | 2.7 |
2021 | 2.7 |
2022 | 2.7 |
2023 | 2.4 |
2024 | 0.1 |
Thereafter | 0 |
Total lease payments | 10.6 |
Less imputed interest | 1.9 |
Total | $ 8.7 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 729.5 | $ 747.7 | $ 714 | $ 674.8 | $ 694 | $ 699 | $ 682.4 | $ 638.6 | $ 2,866 | $ 2,714 | $ 2,582.9 |
ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,582.9 | ||||||||||
Freight Revenues [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,725.9 | 2,591.8 | |||||||||
Freight Revenues [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,484 | ||||||||||
Chemical and Petroleum [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 737.2 | 622.1 | |||||||||
Chemical and Petroleum [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 539.9 | ||||||||||
Chemicals [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 246.9 | 236.3 | |||||||||
Chemicals [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 225.1 | ||||||||||
Petroleum [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 341.8 | 241.9 | |||||||||
Petroleum [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 186 | ||||||||||
Plastics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 148.5 | 143.9 | |||||||||
Plastics [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 128.8 | ||||||||||
Industrial and Consumer Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 610.4 | 591 | |||||||||
Industrial and Consumer Products [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 588.3 | ||||||||||
Forest Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 261.4 | 268 | |||||||||
Forest Products [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 255.8 | ||||||||||
Metals and Scrap [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 232.9 | 208.2 | |||||||||
Metals and Scrap [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 223.3 | ||||||||||
Other Industrial and Consumer Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 116.1 | 114.8 | |||||||||
Other Industrial and Consumer Products [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 109.2 | ||||||||||
Agriculture and Minerals [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 506.3 | 486.4 | |||||||||
Agriculture and Minerals [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 477.4 | ||||||||||
Grain [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 298.4 | 289.9 | |||||||||
Grain [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 278.1 | ||||||||||
Food Products [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 149.4 | 145.7 | |||||||||
Food Products [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 151.1 | ||||||||||
Ores and Minerals [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 25 | 20.9 | |||||||||
Ores and Minerals [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 19.9 | ||||||||||
Stone, Clay and Glass [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 33.5 | 29.9 | |||||||||
Stone, Clay and Glass [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 28.3 | ||||||||||
Energy [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 246.2 | 256.3 | |||||||||
Energy [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 283.8 | ||||||||||
Utility Coal [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 126.9 | 117.3 | |||||||||
Utility Coal [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 166.3 | ||||||||||
Coal and Petroleum Coke [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 43.2 | 44.3 | |||||||||
Coal and Petroleum Coke [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 40.8 | ||||||||||
Frac Sand [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 27.4 | 37.4 | |||||||||
Frac Sand [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 51.8 | ||||||||||
Crude Oil [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 48.7 | 57.3 | |||||||||
Crude Oil [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 24.9 | ||||||||||
Intermodal [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 370.2 | 382.8 | |||||||||
Intermodal [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 363.8 | ||||||||||
Automotive [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 255.6 | 253.2 | |||||||||
Automotive [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 230.8 | ||||||||||
Other Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 140.1 | $ 122.2 | |||||||||
Other Revenue [Member] | ASC 605 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 98.9 |
Revenue Narrative (Details)
Revenue Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Amount of revenue recognized from performace obligations partially satisfied in previous year | $ 21.9 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Accounts receivable, net | 274.2 | $ 301.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations that were unsatisfied or partially satisfied | $ 17.7 | |
Performance obligations that were unsatisfied or partially satisfied, expected timing of satisfaction | 1 month |
Revenue Changes in Contract Lia
Revenue Changes in Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract Liabilities [Roll Forward] | ||
Beginning balance | $ 32.4 | $ 26.8 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (32.4) | (26.8) |
Increases due to consideration received, excluding amounts recognized as revenue during the period | 30.5 | 32.4 |
Ending balance | $ 30.5 | $ 32.4 |
Hurricane Harvey (Details)
Hurricane Harvey (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unusual or Infrequent Item, or Both [Line Items] | |||||
Gain on insurance recoveries related to hurricane damage | $ 8.5 | $ 9.4 | $ 0 | $ 17.9 | $ 0 |
Hurricane Harvey [Member] | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Partial settlement of insurance claim, gross | 35.5 | 35.5 | |||
Gain on insurance recoveries related to hurricane damage | $ 17.9 | ||||
Proceeds from insurance settlement | $ 25.5 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net income available to common stockholders for purposes of computing basic earnings per share | $ 538.7 | $ 627.2 | $ 961.8 | ||||||||
Net income available to common stockholders for purposes of computing diluted earnings per share | $ 538.7 | $ 627.2 | $ 961.8 | ||||||||
Weighted-average number of shares outstanding reconciliation [Abstract] | |||||||||||
Basic shares | 99,316 | 101,852 | 104,728 | ||||||||
Effect of dilution | 431 | 418 | 312 | ||||||||
Diluted | 99,747 | 102,270 | 105,040 | ||||||||
Earnings per Share [Abstract] | |||||||||||
Basic earnings per share | $ 1.31 | $ 1.81 | $ 1.29 | $ 1.02 | $ 1.59 | $ 1.71 | $ 1.45 | $ 1.41 | $ 5.42 | $ 6.16 | $ 9.18 |
Diluted earnings per share | $ 1.30 | $ 1.81 | $ 1.28 | $ 1.02 | $ 1.59 | $ 1.70 | $ 1.45 | $ 1.40 | $ 5.40 | $ 6.13 | $ 9.16 |
Stock Options [Member] | |||||||||||
Potentially dilutive shares excluded from the calculation [Abstract] | |||||||||||
Stock options excluded as their inclusion would be anti-dilutive | 121 | 117 | 150 |
Property and Equipment (inclu_3
Property and Equipment (including Concession Assets) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated amortization | $ 678.1 | $ 645.2 | |
Concession assets, net of accumulated amortization | 2,335.5 | 2,260.4 | |
Depreciation and amortization | $ 350.7 | $ 346.7 | $ 320.9 |
Property and Equipment (inclu_4
Property and Equipment (including Concession Assets) Schedule of Property and Equipment (including Concession Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 11,496 | $ 11,269.5 | |
Accumulated Depreciation | (2,689.7) | (2,578.4) | |
Net Book Value | 8,806.3 | 8,691.1 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 224.9 | 219.3 | |
Accumulated Depreciation | 0 | 0 | |
Net Book Value | 224.9 | 219.3 | |
Concession land rights [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 141.1 | 141.1 | |
Accumulated Depreciation | (29.4) | (27.9) | |
Net Book Value | $ 111.7 | $ 113.2 | |
Depreciation Rates | 1.00% | 1.00% | |
Road property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 7,962.1 | $ 7,711.5 | |
Accumulated Depreciation | (1,796.3) | (1,710.4) | |
Net Book Value | $ 6,165.8 | $ 6,001.1 | |
Depreciation Rates | 2.80% | 2.80% | |
Rail and other track material [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 2,122.9 | $ 2,064.4 | |
Accumulated Depreciation | (373.3) | (296.3) | |
Net Book Value | $ 1,749.6 | $ 1,768.1 | |
Rail and other track material [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 1.80% | 2.40% | |
Rail and other track material [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 3.20% | 2.90% | |
Ties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 1,738.4 | $ 1,697.9 | |
Accumulated Depreciation | (405.7) | (465.6) | |
Net Book Value | $ 1,332.7 | $ 1,232.3 | |
Ties [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 1.40% | 2.00% | |
Ties [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 5.00% | 4.80% | |
Grading [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 991.5 | $ 978.2 | |
Accumulated Depreciation | (179.4) | (169.4) | |
Net Book Value | $ 812.1 | $ 808.8 | |
Depreciation Rates | 1.10% | 0.90% | |
Bridges and tunnels [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 823.8 | $ 803.9 | |
Accumulated Depreciation | (163) | (153.8) | |
Net Book Value | $ 660.8 | $ 650.1 | |
Depreciation Rates | 1.20% | 1.10% | |
Ballast [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 835.6 | $ 799.9 | |
Accumulated Depreciation | (236.4) | (223.9) | |
Net Book Value | $ 599.2 | $ 576 | |
Ballast [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 2.20% | 2.50% | |
Ballast [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation Rates | 4.70% | 4.20% | |
Other road property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | [1] | $ 1,449.9 | $ 1,367.2 |
Accumulated Depreciation | [1] | (438.5) | (401.4) |
Net Book Value | [1] | $ 1,011.4 | $ 965.8 |
Depreciation Rates | [1] | 3.00% | 3.20% |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 2,652.6 | $ 2,739.5 | |
Accumulated Depreciation | (656.7) | (666.2) | |
Net Book Value | $ 1,995.9 | $ 2,073.3 | |
Depreciation Rates | 4.10% | 4.10% | |
Locomotives [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 1,593.9 | $ 1,638.1 | |
Accumulated Depreciation | (429.7) | (436.3) | |
Net Book Value | $ 1,164.2 | $ 1,201.8 | |
Depreciation Rates | 5.20% | 4.90% | |
Freight cars [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 980.8 | $ 1,034.1 | |
Accumulated Depreciation | (196.6) | (200.9) | |
Net Book Value | $ 784.2 | $ 833.2 | |
Depreciation Rates | 2.40% | 2.70% | |
Other equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 77.9 | $ 67.3 | |
Accumulated Depreciation | (30.4) | (29) | |
Net Book Value | $ 47.5 | $ 38.3 | |
Depreciation Rates | 4.50% | 5.70% | |
Technology and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 345.1 | $ 305.6 | |
Accumulated Depreciation | (207.3) | (173.9) | |
Net Book Value | $ 137.8 | $ 131.7 | |
Depreciation Rates | 16.30% | 16.60% | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 170.2 | $ 152.5 | |
Accumulated Depreciation | 0 | 0 | |
Net Book Value | $ 170.2 | $ 152.5 | |
[1] | Other includes signals, buildings and other road assets. |
Other Balance Sheet Captions Ot
Other Balance Sheet Captions Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Balance Sheet Captions [Abstract] | ||
Refundable taxes | $ 67.3 | $ 11.2 |
Advances to affiliates | 47.3 | 6.3 |
Mexican fuel excise tax credit | 0 | 30.9 |
Prepaid expenses | 21 | 21.7 |
Other | 19.4 | 3.3 |
Other current assets | $ 155 | $ 73.4 |
Other Balance Sheet Captions Ac
Other Balance Sheet Captions Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Balance Sheet Captions [Abstract] | |||
Accounts payable | $ 157.1 | $ 180.5 | |
Income and other taxes | 34.4 | 35.2 | |
Accrued wages and vacation | 79 | 60.9 | |
Short-term operating lease liability | 45.4 | 0 | |
Derailments, personal injury and other claim provisions | 38.5 | 44 | |
Dividends payable | 38.7 | 36.4 | |
Contract liabilities | 30.5 | 32.4 | $ 26.8 |
Interest payable | 23.1 | 20.1 | |
Other | 26.6 | 27.4 | |
Accounts payable and accrued liabilities | $ 473.3 | $ 436.9 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of Company's debt | $ 3,246 | $ 2,689.4 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt instruments | 3,535.7 | 2,661.3 |
Foreign Currency Derivative Instruments [Member] | Fair Value, 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 instruments, assets | 2.5 | 0.3 |
Treasury Lock Agreements [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of treasury lock agreements, liabilities | $ 0 | $ 2 |
Derivative Instruments Interest
Derivative Instruments Interest Rate Derivative Instruments (Details) $ in Millions | Nov. 18, 2019USD ($) | May 31, 2017USD ($)Treasury_Lock_Agreements | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 18, 2019 |
Derivative [Line Items] | |||||||
Long-term debt instrument, gross | $ 3,276.9 | $ 3,276.9 | |||||
Cash paid for settlement of treasury lock agreements | 25.8 | $ 0 | $ 0 | ||||
Senior Notes [Member] | KCS [Member] | |||||||
Derivative [Line Items] | |||||||
Long-term debt instrument, gross | $ 3,186.2 | $ 3,186.2 | |||||
Senior Notes [Member] | 2.35% Senior Notes due May 15, 2020 [Member] | |||||||
Derivative [Line Items] | |||||||
Long-term debt instrument, gross | $ 275 | ||||||
Debt instrument, stated interest rate | 2.35% | 2.35% | |||||
Debt instrument, maturity date | May 15, 2020 | ||||||
Senior Notes [Member] | 2.875% Senior Notes due November 15, 2029 [Member] | KCS [Member] | |||||||
Derivative [Line Items] | |||||||
Debt instrument, stated interest rate | 2.875% | 2.875% | 2.875% | ||||
Debt instrument, maturity date | Nov. 15, 2029 | Nov. 15, 2029 | |||||
Debt instrument, face amount | $ 425 | $ 425 | $ 425 | ||||
Debt instrument, interest rate effective percentage after effect of cash flow hedge | 3.60% | 3.60% | |||||
Treasury Lock Agreements [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Number of treasury lock agreements executed | Treasury_Lock_Agreements | 4 | ||||||
Aggregate notional value of treasury lock agreements | $ 275 | ||||||
Weighted-average interest rate of treasury lock agreements | 2.85% | ||||||
Cash paid for settlement of treasury lock agreements | $ 25.8 |
Derivative Instruments Summary
Derivative Instruments Summary of Foreign Currency Derivative Contracts (Details) $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2018USD ($)$ / $ | Dec. 31, 2017USD ($)$ / $ | Dec. 31, 2019MXN ($)$ / $ | Dec. 31, 2018MXN ($)$ / $ | Dec. 31, 2017MXN ($)$ / $ | Dec. 31, 2016USD ($)$ / $ | Dec. 31, 2016MXN ($)$ / $ | |
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | $ 11.9 | $ 13.9 | $ (10.8) | |||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2019 and Settled in 2019 [Member] | Foreign Exchange Gain [Member] | ||||||||
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | 10.7 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2018 and Settled in 2019 [Member] | Foreign Exchange Gain [Member] | ||||||||
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | 0.9 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2016 and Settled in 2017 [Member] | Foreign Exchange Gain [Member] | ||||||||
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | (53) | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 105 | $ 2,041.2 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.4 | 19.4 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | Contracts Executed in 2019 and Outstanding [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 105 | $ 2,041.2 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.4 | 19.4 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | Contracts Executed in 2019 and Settled in 2019 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 400 | $ 7,892.5 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.7 | 19.7 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | Contracts Executed in 2018 and Settled in 2019 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 20 | $ 410.9 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 20.5 | 20.5 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | Contracts Executed in 2016 and Settled in 2017 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 340 | $ 6,207.7 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 18.3 | 18.3 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instruments [Member] | Contracts Executed in 2019 and Settled in 2019 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 410.7 | $ 7,892.5 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.2 | 19.2 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instruments [Member] | Contracts Executed in 2018 and Settled in 2019 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 20.9 | $ 410.9 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.6 | 19.6 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instruments [Member] | Contracts Executed in 2016 and Settled in 2017 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 287 | $ 6,207.7 | ||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 21.6 | 21.6 | ||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2018 and Settled in 2019 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 120 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2018 and Settled in 2019 [Member] | Foreign Exchange Gain [Member] | ||||||||
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | $ 0.3 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2018 and Settled in 2018 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | 220 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2018 and Settled in 2018 [Member] | Foreign Exchange Gain [Member] | ||||||||
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | 3.9 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2017 and Settled in 2018 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | $ 80 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2017 and Settled in 2018 [Member] | Foreign Exchange Gain [Member] | ||||||||
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | $ 10 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2017 and Settled in 2017 [Member] | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency contracts | 450 | |||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Contracts Executed in 2017 and Settled in 2017 [Member] | Foreign Exchange Gain [Member] | ||||||||
Derivative [Line Items] | ||||||||
Cash received (paid) on settlement of foreign currency contracts | $ 42.2 |
Derivative Instruments Fair Val
Derivative Instruments Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 2.5 | $ 0.3 |
Derivative liabilities, fair value | 0 | 2 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 2.5 | 0.3 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 2.5 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 0.3 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | 0 | 2 |
Designated as Hedging Instrument [Member] | Treasury Lock Agreements [Member] | Other Noncurrent Liabilities and Deferred Credits [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 0 | $ 2 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments Affecting the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in OCI on Derivative | $ (23.8) | $ 3.6 | $ (5.6) |
Amount of Gain/(Loss) Reclassified from AOCI into Income | (0.2) | 0 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Treasury Lock Agreements [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in OCI on Derivative | (23.8) | 3.6 | (5.6) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Treasury Lock Agreements [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Reclassified from AOCI into Income | (0.2) | 0 | 0 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | 14.1 | 6.3 | 38.2 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Foreign Exchange Gain [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | 14.1 | 0 | (11.9) |
Not Designated as Hedging Instrument [Member] | Foreign Currency Zero-Cost Collar Contracts [Member] | Foreign Exchange Gain [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ 0 | $ 6.3 | $ 50.1 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - KCS [Member] - Commercial Paper [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Borrowings [Line Items] | |||
Amount of commercial paper outstanding | $ 0 | $ 0 | |
Maximum [Member] | |||
Short-term Borrowings [Line Items] | |||
Commercial paper, days outstanding | 90 days | 90 days | 90 days |
Long-Term Debt Schedule of Long
Long-Term Debt Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 21, 2012 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 3,276.9 | |||
Unamortized discount and debt issuance costs | 39.6 | $ 31.2 | ||
Finance lease obligations | 8.7 | |||
Total, gross | 3,285.6 | 2,720.6 | ||
Total | 3,246 | 2,689.4 | ||
Less: Debt due within one year, gross | 18 | 10.1 | ||
Unamortized discount and debt issuance costs, current | 0 | 0 | ||
Less: Debt due within one year | 18 | 10.1 | ||
Long-term debt, gross | 3,267.6 | 2,710.5 | ||
Unamortized discount and debt issuance costs, noncurrent | 39.6 | 31.2 | ||
Long-term debt | 3,228 | 2,679.3 | ||
KCS [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 3,147.2 | 2,563 | ||
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] | KCSR [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | 2.7 | 2.7 | ||
Unamortized discount and debt issuance costs | 0 | 0 | ||
Long-term debt instrument | $ 2.7 | 2.7 | ||
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] | KCSM [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 5.6 | 23.2 | ||
Unamortized discount and debt issuance costs | 0 | 0.1 | ||
Long-term debt instrument | $ 5.6 | 23.1 | ||
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] | KCS [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 3,186.2 | |||
Senior Notes [Member] | KCS [Member] | 2.35% senior notes due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | 0 | 257.3 | ||
Unamortized discount and debt issuance costs | 0 | 0.7 | ||
Long-term debt instrument | $ 0 | 256.6 | ||
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 | 2.5 | 3.2 | ||
Long-term debt instrument | $ 436.6 | 435.9 | ||
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 | 199.2 | ||
Unamortized discount and debt issuance costs | 1.1 | 1.4 | ||
Long-term debt instrument | $ 198.1 | 197.8 | ||
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 | 250 | ||
Unamortized discount and debt issuance costs | 2.4 | 2.7 | ||
Long-term debt instrument | $ 247.6 | 247.3 | ||
Debt instrument, stated interest rate | 3.125% | |||
Senior Notes [Member] | KCS [Member] | 2.875% senior notes due 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 425 | 0 | ||
Unamortized discount and debt issuance costs | 4.2 | 0 | ||
Long-term debt instrument | $ 420.8 | 0 | ||
Debt instrument, stated interest rate | 2.875% | |||
Senior Notes [Member] | KCS [Member] | 4.30% senior notes due 2043 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 448.7 | 448.7 | ||
Unamortized discount and debt issuance costs | 8.8 | 9.1 | ||
Long-term debt instrument | $ 439.9 | 439.6 | ||
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 | 499.2 | ||
Unamortized discount and debt issuance costs | 7.2 | 7.4 | ||
Long-term debt instrument | $ 492 | 491.8 | ||
Debt instrument, stated interest rate | 4.95% | |||
Senior Notes [Member] | KCS [Member] | 4.70% senior notes due 2048 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 500 | 500 | ||
Unamortized discount and debt issuance costs | 6 | 6.2 | ||
Long-term debt instrument | $ 494 | 493.8 | ||
Debt instrument, stated interest rate | 4.70% | |||
Senior Notes [Member] | KCS [Member] | 4.20% senior notes due 2069 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 425 | 0 | ||
Unamortized discount and debt issuance costs | 7 | 0 | ||
Long-term debt instrument | $ 418 | 0 | ||
Debt instrument, stated interest rate | 4.20% | |||
Secured Debt [Member] | RRIF loans due serially through 2037 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 70.2 | 74.1 | ||
Unamortized discount and debt issuance costs | 0.4 | 0.4 | ||
Long-term debt instrument | $ 69.8 | 73.7 | ||
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 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | $ 12 | 15.5 | ||
Unamortized discount and debt issuance costs | 0 | 0 | ||
Long-term debt instrument | $ 12 | 15.5 | ||
Debt instrument, stated interest rate | 9.311% | |||
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 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, stated interest rate | 9.311% | |||
Finance Lease Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Finance lease obligations | $ 8.7 | 11.4 | ||
Other Debt Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt instrument, gross | 0.2 | 0.2 | ||
Unamortized discount and debt issuance costs | 0 | 0 | ||
Long-term debt instrument | $ 0.2 | $ 0.2 |
Long-Term Debt Revolving Credit
Long-Term Debt Revolving Credit Facility (Details) - USD ($) $ in Millions | Mar. 08, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Debt retirement costs | $ (1.1) | $ (2.2) | $ 0 | ||
KCS [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt retirement costs | (0.7) | 0 | $ 0 | ||
KCS [Member] | Commercial Paper [Member] | |||||
Debt Instrument [Line Items] | |||||
Commercial paper program replaced | 800 | ||||
Commercial paper maximum borrowing capacity | 600 | ||||
KCS [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term to maturity | 5 years | ||||
Credit facility maximum borrowing capacity | $ 600 | ||||
Revolving credit facility replaced | $ 800 | ||||
Revolving credit facility maturity date | Mar. 8, 2024 | ||||
Debt issuance costs | $ 2.5 | ||||
Debt retirement costs | $ 0.6 | ||||
Outstanding borrowings under the revolving credit facility | $ 0 | $ 0 | |||
KCS [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Margin KCS pays or would pay above the LIBOR | 1.25% | ||||
KCS [Member] | 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 | 1.00% | ||||
KCS [Member] | 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 | 1.75% | ||||
KCS [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 25 |
Long-Term Debt Senior Notes (De
Long-Term Debt Senior Notes (Details) - USD ($) $ in Millions | Dec. 18, 2019 | Nov. 18, 2019 | May 31, 2017 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||
Debt retirement costs | $ (1.1) | $ (2.2) | $ 0 | ||||
KCS [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt retirement costs | $ (0.7) | $ 0 | $ 0 | ||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Redemption option senior notes, price expressed as a percent of principal amount | 100.00% | ||||||
Senior Notes [Member] | 2.35% Senior Notes due May 15, 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | May 15, 2020 | ||||||
Debt instrument, stated interest rate | 2.35% | 2.35% | |||||
Debt instrument, extinguishment amount | $ 275 | ||||||
Redemption price expressed as a percent of principal amount | 100.084% | ||||||
Debt retirement costs | $ 0.5 | ||||||
Senior Notes [Member] | KCS [Member] | 2.875% Senior Notes due November 15, 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 425 | $ 425 | $ 425 | ||||
Debt instrument, maturity date | Nov. 15, 2029 | Nov. 15, 2029 | |||||
Debt instrument, stated interest rate | 2.875% | 2.875% | 2.875% | ||||
Debt instrument, unamortized discount | $ 0.4 | ||||||
Debt instrument, yield to maturity | 2.885% | ||||||
Senior Notes [Member] | KCS [Member] | 4.20% Senior Notes due November 15, 2069 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 425 | ||||||
Debt instrument, maturity date | Nov. 15, 2069 | ||||||
Debt instrument, stated interest rate | 4.20% | ||||||
Debt instrument, unamortized discount | $ 2.1 | ||||||
Debt instrument, yield to maturity | 4.224% | ||||||
Senior Notes [Member] | KCSM [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Additional redemption option KCSM senior notes, price expressed as percent of principal amount | 100.00% |
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, 2019 | Dec. 31, 2011 |
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 9.311% | |
KCSM [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 91 | |
Debt instrument, stated interest rate | 9.311% |
Long-Term Debt Leases and Debt
Long-Term Debt Leases and Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Long-Term Debt | ||
Long-Term Debt, Payments Due in 2020 | $ 16.1 | |
Long-Term Debt, Payments Due in 2021 | 4.2 | |
Long-Term Debt, Payments Due in 2022 | 4.3 | |
Long-Term Debt, Payments Due in 2023 | 649.1 | |
Long-Term Debt, Payments Due in 2024 | 4.6 | |
Long-Term Debt, Payments Due Thereafter | 2,598.6 | |
Total Long-Term Debt | 3,276.9 | |
Finance Leases, Net Present Value [Abstract] | ||
Finance Leases, Net Present Value, Payments Due in 2020 | 1.9 | |
Finance Leases, Net Present Value, Payments Due in 2021 | 2.1 | |
Finance Leases, Net Present Value, Payments Due in 2022 | 2.3 | |
Finance Leases, Net Present Value, Payments Due in 2023 | 2.3 | |
Finance Leases, Net Present Value, Payments Due in 2024 | 0.1 | |
Finance Leases, Net Present Value, Payments Due Thereafter | 0 | |
Total Finance Leases, Net Present Value | 8.7 | |
Long Term Debt And Finance Lease Obligation [Abstract] | ||
Total Debt, Payments Due in 2020 | 18 | |
Total Debt, Payments Due in 2021 | 6.3 | |
Total Debt, Payments Due in 2022 | 6.6 | |
Total Debt, Payments Due in 2023 | 651.4 | |
Total Debt, Payments Due in 2024 | 4.7 | |
Total Debt, Payments Due Thereafter | 2,598.6 | |
Total Debt, Payments Due | $ 3,285.6 | $ 2,720.6 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
U.S. corporate income tax rate | 21.00% | 21.00% | 35.00% |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax Disclosure [Line Items] | |||
U.S. corporate income tax rate | 21.00% | 35.00% | |
Percent dividends received deduction provided for in Tax Reform Act | 100.00% | ||
State and Local Jurisdiction [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryover, amount | $ 351.9 | ||
Net operating loss carryover, deferred tax asset | $ 22.5 | ||
State and Local Jurisdiction [Member] | Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryover, period | 5 years | ||
State and Local Jurisdiction [Member] | Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryover, period | 20 years | ||
Foreign Tax Authority [Member] | Mexican Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryover, amount | $ 11.1 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 22.3 | $ (10.5) | $ 47.3 |
State and local | 1.8 | 0.7 | 0.6 |
Foreign | 170.4 | 175.6 | 163.8 |
Total current | 194.5 | 165.8 | 211.7 |
Deferred: | |||
Federal | 27.5 | 77.6 | (350.1) |
State and local | 14.8 | 9.1 | 11.9 |
Foreign | 10.8 | 5 | 36.9 |
Total deferred | 53.1 | 91.7 | (301.3) |
Income tax expense (benefit) | $ 247.6 | $ 257.5 | $ (89.6) |
Income Taxes Schedule of Inco_2
Income Taxes Schedule of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 250.3 | $ 366.2 | $ 331.8 |
Foreign | 538.1 | 520.7 | 542.5 |
Income before income taxes | $ 788.4 | $ 886.9 | $ 874.3 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Reserves not currently deductible for tax | $ 36.8 | $ 36.6 |
Lease liability | 35.1 | 0 |
Compensation and benefits | 23.1 | 20.9 |
Tax credit and loss carryovers | 21.5 | 28.9 |
Other | 22.4 | 16.9 |
Gross deferred tax assets before valuation allowance | 138.9 | 103.3 |
Valuation allowance | (4.4) | (2.3) |
Net deferred tax assets | 134.5 | 101 |
Liabilities: | ||
Property | (1,181.3) | (1,099.2) |
Investments | (52.4) | (49.7) |
Other | (28.8) | (32) |
Gross deferred tax liabilities | (1,262.5) | (1,180.9) |
Net deferred tax liability | $ (1,128) | $ (1,079.9) |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Income tax expense using the statutory rate in effect | $ 165.6 | $ 186.2 | $ 306 | |
Tax effect of: | ||||
Difference between U.S. and foreign tax rate | 47.6 | 46.1 | (26.6) | |
Foreign exchange | [1] | 35.9 | 21.8 | 31.6 |
Tax credits | (16.8) | (14.2) | (8.4) | |
Mexican fuel excise tax credit, net | [2] | (12.8) | 0 | 0 |
State and local income tax provision, net | 11.5 | 7.5 | 8.3 | |
Withholding tax | 9.5 | 11.2 | 8.1 | |
Global intangible low-taxed income (GILTI) tax, net | 2.7 | 11.8 | 0 | |
Change in U.S. tax rate | 0 | (2.2) | (487.6) | |
Deemed mandatory repatriation | 0 | (18.7) | 74.6 | |
Other, net | 4.4 | 8 | 4.4 | |
Income tax expense (benefit) | $ 247.6 | $ 257.5 | $ (89.6) | |
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% | |
Tax rate effect of: | ||||
Difference between U.S. and foreign tax rate | 6.00% | 5.20% | (3.00%) | |
Foreign exchange | [1] | 4.60% | 2.50% | 3.60% |
Tax credits | (2.10%) | (1.60%) | (1.00%) | |
Mexican fuel excise tax credit, net | [2] | (1.60%) | 0.00% | 0.00% |
State and local income tax provision, net | 1.50% | 0.80% | 1.00% | |
Withholding tax | 1.20% | 1.30% | 0.90% | |
Global intangible low-taxed income (GILTI) tax, net | 0.30% | 1.30% | 0.00% | |
Change in U.S. tax rate | 0 | (0.003) | (0.558) | |
Deemed mandatory repatriation | 0 | (0.021) | 0.086 | |
Other, net | 0.50% | 0.90% | 0.50% | |
Effective income tax rate | 31.40% | 29.00% | (10.20%) | |
[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 gain (loss) within the consolidated statements of income. Refer to Note 12 , Derivative Instruments in the consolidated financial statements for further information. | |||
[2] | For further discussion of the Mexican fuel excise tax credit, refer to Note 4, Mexican fuel excise tax credit. |
Income Taxes Uncertain Tax Posi
Income Taxes Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Rollforward] | ||
Balance at January 1, | $ 2.2 | $ 0 |
Additions for tax positions of prior years | 0 | 2.2 |
Balance at December 31, | $ 2.2 | $ 2.2 |
Stockholders' Equity Capital St
Stockholders' Equity Capital Stock Shares Authorized, Issued and Outstanding (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
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 | 96,115,669 | 100,896,678 |
$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 | 222,625 | 228,395 |
$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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 Repurchases (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2019USD ($) | Dec. 31, 2019USD ($)agreements$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Aug. 31, 2017USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased | shares | 5,076,530 | 2,272,213 | 3,759,678 | |||
Shares repurchased | $ 710,000 | $ 243,500 | $ 375,600 | |||
Forward contract recognized by the Company for portion of accelerated share repurchase agreements not yet settled | $ 82,500 | |||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Maximum amount of share repurchase program | $ 2,000,000 | |||||
Expiration date of share repurchase program | Dec. 31, 2022 | |||||
Shares repurchased | shares | 3,022,760 | |||||
Shares repurchased | $ 467,500 | |||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | Accelerated Share Repurchase Agreements [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount paid under ASR agreements | $ 550,000 | 550,000 | ||||
Number of ASR agreements entered into by the Company | agreements | 2 | |||||
Initial shares delivered as percentage of total shares to be received | 85.00% | |||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | Accelerated Share Repurchase Agreements [Member] | Additional Paid-in Capital [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Forward contract recognized by the Company for portion of accelerated share repurchase agreements not yet settled | $ 82,500 | |||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | Accelerated Share Repurchase Agreements [Member] | Initial Shares Delivered [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased | shares | 3,022,760 | |||||
Shares repurchased | $ 467,500 | |||||
Weighted-average price of shares repurchased under ASR Agreement(s) | $ / shares | $ 154.66 | |||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | Accelerated Share Repurchase Agreements [Member] | ASR Agreement 1 [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount paid under ASR agreements | $ 275,000 | 275,000 | ||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | Accelerated Share Repurchase Agreements [Member] | ASR Agreement 1 [Member] | Initial Shares Delivered [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased | shares | 1,511,380 | |||||
Shares repurchased | $ 233,750 | |||||
Weighted-average price of shares repurchased under ASR Agreement(s) | $ / shares | $ 154.66 | |||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | Accelerated Share Repurchase Agreements [Member] | ASR Agreement 2 [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Amount paid under ASR agreements | $ 275,000 | 275,000 | ||||
Common Stock [Member] | 2019 Share Repurchase Program [Member] | Accelerated Share Repurchase Agreements [Member] | ASR Agreement 2 [Member] | Initial Shares Delivered [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased | shares | 1,511,380 | |||||
Shares repurchased | $ 233,750 | |||||
Weighted-average price of shares repurchased under ASR Agreement(s) | $ / shares | $ 154.66 | |||||
Common Stock [Member] | 2017 Share Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Maximum amount of share repurchase program | $ 800,000 | |||||
Remaining authorized repurchase amount that was eliminated | $ 59,300 | $ 59,300 | ||||
Shares repurchased | shares | 2,053,770 | |||||
Shares repurchased | $ 242,400 | |||||
$25 Par Preferred Stock [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased | shares | 5,770 | |||||
Shares repurchased | $ 100 | |||||
Average price of shares repurchased | $ / shares | $ 26.39 | |||||
Preferred stock, par value | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 |
Stockholders' Equity Treasury S
Stockholders' Equity Treasury Stock (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Balance at beginning of year | 22,455,507 | 20,315,380 | 16,745,566 |
Shares repurchased | 5,076,530 | 2,272,213 | 3,759,678 |
Shares issued to fund stock option exercises | (109,560) | (24,024) | (9,110) |
Employee stock purchase plan shares issued | (72,707) | (62,866) | (76,401) |
Nonvested shares issued | (124,031) | (51,191) | (124,519) |
Nonvested shares forfeited | 10,777 | 5,995 | 20,166 |
Balance at end of year | 27,236,516 | 22,455,507 | 20,315,380 |
Stockholders' Equity Cash Divid
Stockholders' Equity Cash Dividends on Common Stock (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Cash dividends declared per common share | $ 1.48 | $ 1.44 | $ 1.38 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | Dec. 31, 2019shares |
2017 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 3,750,000 |
Share-Based Compensation, Stock
Share-Based Compensation, Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised, number of shares | (109,560) | (24,024) | (9,110) |
Cash received from option exercises | $ 7 | $ 1.8 | $ 0.7 |
Share-based Payment Arrangement, 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 | 1.33% | 1.36% | 1.52% |
Expected volatility | 26.38% | 27.09% | 30.74% |
Risk-free interest rate | 2.64% | 2.80% | 2.20% |
Expected term (years) | 5 years 8 months 12 days | 6 years | 6 years |
Weighted-average grant date fair value of stock options granted | $ 27.70 | $ 28.52 | $ 24.49 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, number of shares, beginning of period | 564,515 | ||
Options, weighted-average exercise price per share, beginning of period | $ 83.24 | ||
Granted, number of shares | 142,348 | ||
Granted, weighted-average exercise price | $ 108 | ||
Exercised, number of shares | (109,560) | ||
Exercised, weighted-average exercise price per share | $ 63.57 | ||
Forfeited or expired, number of shares | (789) | ||
Forfeited or expired, weighted-average exercise price per share | $ 104.48 | ||
Options outstanding, number of shares, end of period | 596,514 | 564,515 | |
Options, weighted-average exercise price per share, end of period | $ 92.73 | $ 83.24 | |
Options outstanding, weighted-average remaining contractual term | 6 years 2 months 12 days | ||
Options outstanding, aggregate intrinsic value | $ 36 | ||
Exercisable, number of shares | 391,685 | ||
Exercisable, weighted-average exercise price per share | $ 86.42 | ||
Exercisable, weighted-average remaining contractual term | 4 years 10 months 24 days | ||
Exercisable, aggregate intrinsic value | $ 26.1 | ||
Compensation expense | 2.6 | $ 2.5 | $ 2.3 |
Income tax benefit recognized in the income statement | 0.6 | 0.6 | 0.8 |
Aggregate grant-date fair value of stock options vested | 3 | 1.9 | 2.8 |
Intrinsic value of stock options exercised | 7.2 | 1 | 0.2 |
Cash received from option exercises | 7 | 1.8 | 0.7 |
Tax benefit from options exercised during the annual period | 1.8 | $ 0.2 | $ 0.1 |
Unrecognized compensation cost relating to nonvested stock options | $ 1.4 | ||
Unrecognized compensation cost weighted-average period of recognition | 1 year | ||
Shares available for future grants | 3,179,090 |
Share-Based Compensation, Nonve
Share-Based Compensation, Nonvested Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Forfeited, number of shares | (10,777) | (5,995) | (20,166) |
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 | 257,621 | ||
Nonvested stock, weighted-average grant date fair value, beginning of period | $ 96.61 | ||
Granted, number of shares | 96,163 | ||
Granted, weighted-average grant date fair value | $ 114.69 | $ 106.52 | $ 93.29 |
Vested, number of shares | (122,812) | ||
Vested, weighted-average grant date fair value | $ 101.67 | ||
Forfeited, number of shares | (10,777) | ||
Forfeited, weighted-average grant date fair value | $ 102.44 | ||
Nonvested stock, number of shares, end of period | 220,195 | 257,621 | |
Nonvested stock, weighted-average grant date fair value, end of period | $ 101.40 | $ 96.61 | |
Nonvested stock, aggregate intrinsic value | $ 33.7 | ||
Shares vested, fair value | 15.2 | $ 10.4 | $ 5.9 |
Compensation expense | 10.1 | 10.8 | 9.3 |
Income tax benefit recognized in the income statement | 2.5 | $ 2.6 | $ 3.5 |
Unrecognized compensation cost relating to nonvested stock | $ 10.9 | ||
Unrecognized compensation cost weighted-average period of recognition | 1 year 2 months 12 days | ||
Nonvested Stock [Member] | Minimum [Member] | Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Nonvested Stock [Member] | Maximum [Member] | Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Share-Based Compensation, Perfo
Share-Based Compensation, Performance Based Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Forfeited, number of shares | (10,777) | (5,995) | (20,166) | |
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] | 152,979 | ||
Nonvested stock, weighted-average grant date fair value, beginning of period | $ 91.74 | |||
Granted, number of shares | [1] | 50,681 | ||
Granted, weighted-average grant date fair value | $ 110.13 | $ 105.83 | $ 87.09 | |
Vested, number of shares | [1] | (51,072) | ||
Vested, weighted-average grant date fair value | $ 82.71 | |||
Forfeited, number of shares | [1] | (4,403) | ||
Forfeited, weighted-average grant date fair value | $ 104.47 | |||
Nonvested stock, number of shares, end of period | [1] | 148,185 | 152,979 | |
Nonvested stock, weighted-average grant date fair value, end of period | $ 100.76 | $ 91.74 | ||
Compensation expense | $ 7.8 | $ 5.8 | $ 6 | |
Income tax benefit recognized in the income statement | 1.9 | $ 1.5 | $ 2.2 | |
Unrecognized compensation cost relating to nonvested stock | $ 5.3 | |||
Unrecognized compensation cost weighted-average period of recognition | 11 months | |||
Shares vested, fair value | $ 5.7 | |||
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% | |||
2019 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 | 96,998 | |||
2018 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 | 96,774 | |||
2017 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 | 87,092 | |||
[1] | * For the 2019 Awards and the 2018 Awards, participants in the aggregate can earn up to a maximum of 96,998 and 96,774 shares, respectively. For the 2017 Awards, the performance shares earned were 87,092 . |
Share-Based Compensation, Emplo
Share-Based Compensation, Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, shares issued | 72,707 | 62,866 | 76,401 | |||||||
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% | 10.00% | ||||||||
Employee stock purchase plan, purchase price | 85.00% | |||||||||
Expected dividend yield | 1.36% | 1.22% | 1.47% | |||||||
Expected volatility | 17.43% | 13.29% | 17.09% | |||||||
Risk-free interest rate | 2.31% | 1.73% | 0.89% | |||||||
Expected term (years) | 6 months | 6 months | 6 months | |||||||
Weighted-average grant date fair value | $ 21.56 | $ 18.66 | $ 17.90 | |||||||
Compensation expense | $ 1.4 | $ 1.3 | $ 1.3 | |||||||
Shares available for future grants | 3,400,000 | 3,400,000 | ||||||||
July 2019 offering ESPP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, purchase price | $ 104.83 | |||||||||
Exercised, shares issued | 27,949 | |||||||||
Proceeds received from employees | [1] | $ 2.9 | ||||||||
January 2019 offering ESPP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, purchase price | $ 81.83 | |||||||||
Exercised, shares issued | 36,735 | |||||||||
Proceeds received from employees | [1] | $ 3 | ||||||||
July 2018 offering ESPP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, purchase price | $ 81.13 | |||||||||
Exercised, shares issued | 35,972 | |||||||||
Proceeds received from employees | [1] | $ 2.9 | ||||||||
January 2018 offering ESPP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, purchase price | $ 90.07 | |||||||||
Exercised, shares issued | 32,271 | |||||||||
Proceeds received from employees | [1] | $ 2.9 | ||||||||
July 2017 offering ESPP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, purchase price | $ 89.18 | |||||||||
Exercised, shares issued | 30,595 | |||||||||
Proceeds received from employees | [1] | $ 2.7 | ||||||||
January 2017 offering ESPP [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, purchase price | $ 68.70 | |||||||||
Exercised, shares issued | 40,293 | |||||||||
Proceeds received from employees | [1] | $ 2.8 | ||||||||
[1] | Represents amounts received from employees through payroll deductions for share purchases under applicable offering. |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Guarantee [Member] | |||
Loss Contingencies [Line Items] | |||
Letter of credit outstanding, amount | $ 5.6 | ||
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 | $ 18.9 | $ 17.8 | $ 17 |
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, 2019 | Dec. 31, 2018 | |
Personal Injury Liability Activity [Roll Forward] | ||
Balance at beginning of year | $ 19.6 | $ 19.3 |
Accruals | 6.3 | 5.3 |
Changes in estimate | 0.2 | 2.4 |
Payments | (5.2) | (7.4) |
Balance at end of year | $ 20.9 | $ 19.6 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Revenues | $ 729.5 | $ 747.7 | $ 714 | $ 674.8 | $ 694 | $ 699 | $ 682.4 | $ 638.6 | $ 2,866 | $ 2,714 | $ 2,582.9 | ||||||||
Operating income | 236 | [1] | 282 | [1] | 208 | [1] | 160.3 | [1] | 256.4 | [2],[3] | 265.4 | [2],[3] | 245.8 | [2] | 218.7 | [2] | 886.3 | 986.3 | 921.6 |
Net income | 127.9 | [4] | 180.6 | [4] | 129.1 | [4] | 103.2 | [4] | 161.8 | 174 | [5] | 148.7 | [5] | 144.9 | 540.8 | 629.4 | 963.9 | ||
Net income attributable to Kansas City Southern and subsidiaries | $ 127.2 | $ 180.2 | $ 128.7 | $ 102.8 | $ 161.1 | $ 173.6 | $ 148.2 | $ 144.5 | $ 538.9 | $ 627.4 | $ 962 | ||||||||
Per share data: | |||||||||||||||||||
Basic earnings per common share | $ 1.31 | $ 1.81 | $ 1.29 | $ 1.02 | $ 1.59 | $ 1.71 | $ 1.45 | $ 1.41 | $ 5.42 | $ 6.16 | $ 9.18 | ||||||||
Diluted earnings per common share | $ 1.30 | $ 1.81 | $ 1.28 | $ 1.02 | $ 1.59 | $ 1.70 | $ 1.45 | $ 1.40 | $ 5.40 | $ 6.13 | $ 9.16 | ||||||||
Restructuring charges | $ 38.3 | $ 12 | $ 51 | $ 67.5 | $ 168.8 | $ 0 | $ 0 | ||||||||||||
Mexican fuel excise tax credit, operating expense offset | $ 11.1 | $ 9.4 | $ 8 | $ 9.2 | 0 | 37.7 | 44.1 | ||||||||||||
Mexican fuel excise tax credit, income tax benefit (expense), net | $ 4.2 | $ 3.7 | $ (1.9) | $ 6.8 | |||||||||||||||
Gain on insurance recoveries related to hurricane damage | $ 8.5 | 9.4 | $ 0 | $ 17.9 | $ 0 | ||||||||||||||
Discrete tax benefits recognized for adjustments to the provisional tax impacts of the Tax Reform Act | $ (16.6) | $ (4.3) | |||||||||||||||||
[1] | During the first, second, third and fourth quarters of 2019, the Company recognized pre-tax restructuring charges of $67.5 million , $51.0 million , $12.0 million and $38.3 million , respectively, within operating expenses related to the implementation of PSR initiatives. | ||||||||||||||||||
[2] | During the first, second, third, and fourth quarters of 2018, the Company recognized a pre-tax benefit of $9.2 million , $8.0 million , $9.4 million , and $11.1 million , respectively, within operating expenses related to a credit that was available for the excise tax included in the price of fuel that was purchased and consumed in locomotives and certain work equipment in Mexico. Effective January 1, 2019, the Company began recognizing the benefit as a reduction of income tax expense due to changes in Mexican tax law; and beginning April 30, 2019, railroads in Mexico are no longer eligible for the tax credit due to changes in Mexican tax regulations. | ||||||||||||||||||
[3] | During the third and fourth quarters of 2018, the Company recognized a pre-tax gain of $9.4 million and $8.5 million , respectively, within operating expense for insurance recoveries related to damage from Hurricane Harvey in 2017. | ||||||||||||||||||
[4] | During the first, second, third, and fourth quarters of 2019, the Company recognized, net, a tax benefit of $6.8 million , expense of $1.9 million , and benefits of $3.7 million , and $4.2 million , respectively, related to the Mexican fuel excise tax credit generated through April 29, 2019, noted in (ii) above. | ||||||||||||||||||
[5] | During the second and third quarters of 2018, the Company recognized discrete tax benefits of $4.3 million and $16.6 million , respectively, for adjustments to the provisional tax impacts of the Tax Reform Act. |
Geographic Information (Informa
Geographic Information (Information by Geographic Area) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Segments | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of reportable business segments of the Company | Segments | 1 | ||||||||||
Revenues | $ 729.5 | $ 747.7 | $ 714 | $ 674.8 | $ 694 | $ 699 | $ 682.4 | $ 638.6 | $ 2,866 | $ 2,714 | $ 2,582.9 |
Property and equipment (including concession assets), net | 8,806.3 | 8,691.1 | 8,806.3 | 8,691.1 | |||||||
UNITED STATES | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,493.5 | 1,424.8 | 1,359.5 | ||||||||
Property and equipment (including concession assets), net | 5,435.9 | 5,401.3 | 5,435.9 | 5,401.3 | |||||||
MEXICO | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,372.5 | 1,289.2 | $ 1,223.4 | ||||||||
Property and equipment (including concession assets), net | $ 3,370.4 | $ 3,289.8 | $ 3,370.4 | $ 3,289.8 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions, $ in Millions | Jan. 10, 2020USD ($)locomotivesLeases | Dec. 31, 2019USD ($)locomotives$ / $ | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 24, 2020USD ($)$ / $ | Jan. 24, 2020MXN ($)$ / $ | Dec. 31, 2019MXN ($)$ / $ |
Lease Termination [Abstract] | |||||||||||
Restructuring charges | $ | $ 38.3 | $ 12 | $ 51 | $ 67.5 | $ 168.8 | $ 0 | $ 0 | ||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | |||||||||||
Foreign Currency Hedging [Abstract] | |||||||||||
Notional amount of foreign currency contracts | $ 105 | $ 105 | $ 2,041.2 | ||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.4 | 19.4 | 19.4 | ||||||||
Lease Termination [Member] | |||||||||||
Lease Termination [Abstract] | |||||||||||
Number of locomotives covered by terminated leases that were impaired | locomotives | 13 | ||||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | |||||||||||
Foreign Currency Hedging [Abstract] | |||||||||||
Notional amount of foreign currency contracts | $ 250 | $ 4,751.5 | |||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19 | 19 | |||||||||
Subsequent Event [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instrument [Member] | |||||||||||
Foreign Currency Hedging [Abstract] | |||||||||||
Notional amount of foreign currency contracts | $ 108.6 | $ 2,041.2 | |||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 18.8 | 18.8 | |||||||||
Subsequent Event [Member] | Lease Termination [Member] | |||||||||||
Lease Termination [Abstract] | |||||||||||
Number of leases terminated | Leases | 2 | ||||||||||
Number of locomotives covered under terminated leases | locomotives | 91 | ||||||||||
Cash purchase price for purchase of underlying assets | $ | $ 78 | ||||||||||
Number of locomotives covered by terminated lease included in property and equipment | locomotives | 78 | ||||||||||
Restructuring charges | $ | $ 6 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Condensed Financial Statements, Captions [Line Items] | |
Outstanding principal amount of the senior notes | $ 3,276.9 |
KCS [Member] | Senior Notes [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Outstanding principal amount of the senior notes | 3,186.2 |
KCSR [Member] | Senior Notes [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Outstanding principal amount of the senior notes | $ 2.7 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||||||
Revenues | $ 729.5 | $ 747.7 | $ 714 | $ 674.8 | $ 694 | $ 699 | $ 682.4 | $ 638.6 | $ 2,866 | $ 2,714 | $ 2,582.9 | ||||||||
Operating expenses | 1,979.7 | 1,727.7 | 1,661.3 | ||||||||||||||||
Operating income | 236 | [1] | 282 | [1] | 208 | [1] | 160.3 | [1] | 256.4 | [2],[3] | 265.4 | [2],[3] | 245.8 | [2] | 218.7 | [2] | 886.3 | 986.3 | 921.6 |
Equity in net earnings (losses) of affiliates | 1 | 2.6 | 11.5 | ||||||||||||||||
Interest expense | (115.9) | (110) | (100.2) | ||||||||||||||||
Debt retirement costs | (1.1) | (2.2) | 0 | ||||||||||||||||
Foreign exchange gain | 17.1 | 7.8 | 41.7 | ||||||||||||||||
Other income (expense), net | 1 | 2.4 | (0.3) | ||||||||||||||||
Income before income taxes | 788.4 | 886.9 | 874.3 | ||||||||||||||||
Income tax expense (benefit) | 247.6 | 257.5 | (89.6) | ||||||||||||||||
Net income | 127.9 | [4] | 180.6 | [4] | 129.1 | [4] | 103.2 | [4] | 161.8 | 174 | [5] | 148.7 | [5] | 144.9 | 540.8 | 629.4 | 963.9 | ||
Less: Net income attributable to noncontrolling interest | 1.9 | 2 | 1.9 | ||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ 127.2 | $ 180.2 | $ 128.7 | $ 102.8 | $ 161.1 | $ 173.6 | $ 148.2 | $ 144.5 | 538.9 | 627.4 | 962 | ||||||||
Other comprehensive income (loss) | (18.2) | 2.7 | (6.7) | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 520.7 | 630.1 | 955.3 | ||||||||||||||||
Consolidating Adjustments [Member] | |||||||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||||||
Revenues | (43.9) | (43.9) | (40.4) | ||||||||||||||||
Operating expenses | (42.6) | (41.8) | (37.3) | ||||||||||||||||
Operating income | (1.3) | (2.1) | (3.1) | ||||||||||||||||
Equity in net earnings (losses) of affiliates | (550) | (636.7) | (996.4) | ||||||||||||||||
Interest expense | 107.2 | 93.5 | 87.7 | ||||||||||||||||
Debt retirement costs | 0 | 0 | 0 | ||||||||||||||||
Foreign exchange gain | 0 | 0 | 0 | ||||||||||||||||
Other income (expense), net | (107.4) | (93.6) | (87.6) | ||||||||||||||||
Income before income taxes | (551.5) | (638.9) | (999.4) | ||||||||||||||||
Income tax expense (benefit) | (0.4) | (0.5) | (0.6) | ||||||||||||||||
Net income | (551.1) | (638.4) | (998.8) | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | (551.1) | (638.4) | (998.8) | ||||||||||||||||
Other comprehensive income (loss) | (0.5) | (0.1) | (0.5) | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | (551.6) | (638.5) | (999.3) | ||||||||||||||||
Parent [Member] | |||||||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||||||||
Operating expenses | 5.3 | 5.2 | 5.7 | ||||||||||||||||
Operating income | (5.3) | (5.2) | (5.7) | ||||||||||||||||
Equity in net earnings (losses) of affiliates | 548.7 | 635.6 | 974.8 | ||||||||||||||||
Interest expense | (109.7) | (96.1) | (81.3) | ||||||||||||||||
Debt retirement costs | (0.7) | 0 | 0 | ||||||||||||||||
Foreign exchange gain | 0 | 0 | 0 | ||||||||||||||||
Other income (expense), net | 107.5 | 92.5 | 86.7 | ||||||||||||||||
Income before income taxes | 540.5 | 626.8 | 974.5 | ||||||||||||||||
Income tax expense (benefit) | 1.6 | (0.6) | 9.9 | ||||||||||||||||
Net income | 538.9 | 627.4 | 964.6 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 538.9 | 627.4 | 964.6 | ||||||||||||||||
Other comprehensive income (loss) | (18.2) | 2.7 | (6.7) | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 520.7 | 630.1 | 957.9 | ||||||||||||||||
KCSR [Member] | |||||||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||||||
Revenues | 1,325.8 | 1,279.2 | 1,220.8 | ||||||||||||||||
Operating expenses | 1,044.7 | 877.2 | 862.8 | ||||||||||||||||
Operating income | 281.1 | 402 | 358 | ||||||||||||||||
Equity in net earnings (losses) of affiliates | (1.1) | (1.1) | 19 | ||||||||||||||||
Interest expense | (85.4) | (78.8) | (72.2) | ||||||||||||||||
Debt retirement costs | (0.2) | 0 | 0 | ||||||||||||||||
Foreign exchange gain | 0 | 0 | 0 | ||||||||||||||||
Other income (expense), net | (1.1) | 1.6 | (0.6) | ||||||||||||||||
Income before income taxes | 193.3 | 323.7 | 304.2 | ||||||||||||||||
Income tax expense (benefit) | 44.4 | 69.7 | (310.6) | ||||||||||||||||
Net income | 148.9 | 254 | 614.8 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 148.9 | 254 | 614.8 | ||||||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 148.9 | 254 | 614.8 | ||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||||||
Revenues | 42.7 | 45.2 | 43.5 | ||||||||||||||||
Operating expenses | 37.6 | 38.7 | 39.1 | ||||||||||||||||
Operating income | 5.1 | 6.5 | 4.4 | ||||||||||||||||
Equity in net earnings (losses) of affiliates | 3.7 | 4.5 | 4.5 | ||||||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||||||
Debt retirement costs | 0 | 0 | 0 | ||||||||||||||||
Foreign exchange gain | 0 | 0 | 0 | ||||||||||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||||||||||
Income before income taxes | 8.8 | 11 | 8.9 | ||||||||||||||||
Income tax expense (benefit) | 0.7 | 2.6 | (42.5) | ||||||||||||||||
Net income | 8.1 | 8.4 | 51.4 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 8.1 | 8.4 | 51.4 | ||||||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 8.1 | 8.4 | 51.4 | ||||||||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | |||||||||||||||||||
Revenues | 1,541.4 | 1,433.5 | 1,359 | ||||||||||||||||
Operating expenses | 934.7 | 848.4 | 791 | ||||||||||||||||
Operating income | 606.7 | 585.1 | 568 | ||||||||||||||||
Equity in net earnings (losses) of affiliates | (0.3) | 0.3 | 9.6 | ||||||||||||||||
Interest expense | (28) | (28.6) | (34.4) | ||||||||||||||||
Debt retirement costs | (0.2) | (2.2) | 0 | ||||||||||||||||
Foreign exchange gain | 17.1 | 7.8 | 41.7 | ||||||||||||||||
Other income (expense), net | 2 | 1.9 | 1.2 | ||||||||||||||||
Income before income taxes | 597.3 | 564.3 | 586.1 | ||||||||||||||||
Income tax expense (benefit) | 201.3 | 186.3 | 254.2 | ||||||||||||||||
Net income | 396 | 378 | 331.9 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | 1.9 | 2 | 1.9 | ||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 394.1 | 376 | 330 | ||||||||||||||||
Other comprehensive income (loss) | 0.5 | 0.1 | 0.5 | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ 394.6 | $ 376.1 | $ 330.5 | ||||||||||||||||
[1] | During the first, second, third and fourth quarters of 2019, the Company recognized pre-tax restructuring charges of $67.5 million , $51.0 million , $12.0 million and $38.3 million , respectively, within operating expenses related to the implementation of PSR initiatives. | ||||||||||||||||||
[2] | During the first, second, third, and fourth quarters of 2018, the Company recognized a pre-tax benefit of $9.2 million , $8.0 million , $9.4 million , and $11.1 million , respectively, within operating expenses related to a credit that was available for the excise tax included in the price of fuel that was purchased and consumed in locomotives and certain work equipment in Mexico. Effective January 1, 2019, the Company began recognizing the benefit as a reduction of income tax expense due to changes in Mexican tax law; and beginning April 30, 2019, railroads in Mexico are no longer eligible for the tax credit due to changes in Mexican tax regulations. | ||||||||||||||||||
[3] | During the third and fourth quarters of 2018, the Company recognized a pre-tax gain of $9.4 million and $8.5 million , respectively, within operating expense for insurance recoveries related to damage from Hurricane Harvey in 2017. | ||||||||||||||||||
[4] | During the first, second, third, and fourth quarters of 2019, the Company recognized, net, a tax benefit of $6.8 million , expense of $1.9 million , and benefits of $3.7 million , and $4.2 million , respectively, related to the Mexican fuel excise tax credit generated through April 29, 2019, noted in (ii) above. | ||||||||||||||||||
[5] | During the second and third quarters of 2018, the Company recognized discrete tax benefits of $4.3 million and $16.6 million , respectively, for adjustments to the provisional tax impacts of the Tax Reform Act. |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Current assets | $ 728.6 | $ 635.4 |
Operating lease right-of-use assets | 158.4 | 0 |
Investments | 47.6 | 44.9 |
Investments in consolidated subsidiaries | 0 | 0 |
Property and equipment (including concession assets), net | 8,806.3 | 8,691.1 |
Other assets | 45.9 | 98.4 |
Total assets | 9,786.8 | 9,469.8 |
Liabilities and equity: | ||
Current liabilities | 491.3 | 447 |
Long-term operating lease liabilities | 85.7 | 0 |
Long-term debt | 3,228 | 2,679.3 |
Deferred income taxes | 1,128 | 1,079.9 |
Other liabilities | 107.9 | 130.9 |
Stockholders’ equity | 4,422.5 | 4,813 |
Noncontrolling interest | 323.4 | 319.7 |
Total liabilities and equity | 9,786.8 | 9,469.8 |
Consolidating Adjustments [Member] | ||
Assets: | ||
Current assets | (431.9) | (207.4) |
Operating lease right-of-use assets | (3.8) | 0 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | (5,406.3) | (5,047.4) |
Property and equipment (including concession assets), net | (9.6) | (8) |
Other assets | (2,522.9) | (2,521.1) |
Total assets | (8,374.5) | (7,783.9) |
Liabilities and equity: | ||
Current liabilities | (434.3) | (208.8) |
Long-term operating lease liabilities | (2.9) | 0 |
Long-term debt | (2,523) | (2,521) |
Deferred income taxes | (2.4) | (2) |
Other liabilities | 0 | (0.1) |
Stockholders’ equity | (5,411.9) | (5,052) |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | (8,374.5) | (7,783.9) |
Parent [Member] | ||
Assets: | ||
Current assets | 214.7 | 229.8 |
Operating lease right-of-use assets | 0 | 0 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | 5,201.4 | 4,852.8 |
Property and equipment (including concession assets), net | 0 | 0 |
Other assets | 2,526.2 | 2,523.4 |
Total assets | 7,942.3 | 7,606 |
Liabilities and equity: | ||
Current liabilities | 365.5 | 214.2 |
Long-term operating lease liabilities | 0 | 0 |
Long-term debt | 3,147.2 | 2,563 |
Deferred income taxes | (6.1) | (4.4) |
Other liabilities | 13.2 | 20.2 |
Stockholders’ equity | 4,422.5 | 4,813 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 7,942.3 | 7,606 |
KCSR [Member] | ||
Assets: | ||
Current assets | 534.3 | 257.6 |
Operating lease right-of-use assets | 124.5 | 0 |
Investments | 3.5 | 3.9 |
Investments in consolidated subsidiaries | 1.9 | 4.4 |
Property and equipment (including concession assets), net | 4,440 | 4,429.2 |
Other assets | 16.2 | 59.3 |
Total assets | 5,120.4 | 4,754.4 |
Liabilities and equity: | ||
Current liabilities | 250.1 | 109.2 |
Long-term operating lease liabilities | 64.7 | 0 |
Long-term debt | 1,826.8 | 1,828.8 |
Deferred income taxes | 844.8 | 812.8 |
Other liabilities | 76.2 | 94.8 |
Stockholders’ equity | 2,057.8 | 1,908.8 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 5,120.4 | 4,754.4 |
Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 5.3 | 5 |
Operating lease right-of-use assets | 0 | 0 |
Investments | 9.5 | 4.4 |
Investments in consolidated subsidiaries | 203 | 190.2 |
Property and equipment (including concession assets), net | 158.8 | 165.1 |
Other assets | 0 | 0 |
Total assets | 376.6 | 364.7 |
Liabilities and equity: | ||
Current liabilities | 68.8 | 80.1 |
Long-term operating lease liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Deferred income taxes | 85.5 | 84.7 |
Other liabilities | 0.2 | 0.2 |
Stockholders’ equity | 222.1 | 199.7 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 376.6 | 364.7 |
Non-Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 406.2 | 350.4 |
Operating lease right-of-use assets | 37.7 | 0 |
Investments | 34.6 | 36.6 |
Investments in consolidated subsidiaries | 0 | 0 |
Property and equipment (including concession assets), net | 4,217.1 | 4,104.8 |
Other assets | 26.4 | 36.8 |
Total assets | 4,722 | 4,528.6 |
Liabilities and equity: | ||
Current liabilities | 241.2 | 252.3 |
Long-term operating lease liabilities | 23.9 | 0 |
Long-term debt | 777 | 808.5 |
Deferred income taxes | 206.2 | 188.8 |
Other liabilities | 18.3 | 15.8 |
Stockholders’ equity | 3,132 | 2,943.5 |
Noncontrolling interest | 323.4 | 319.7 |
Total liabilities and equity | $ 4,722 | $ 4,528.6 |
Condensed Consolidating State_2
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net cash provided | $ 1,103.5 | $ 945.7 | $ 1,028.4 |
Investing activities: | |||
Capital expenditures | (587.2) | (520.3) | (585.4) |
Purchase or replacement of assets under operating leases | (39) | (98.9) | (42.6) |
Property investments in MSLLC | (27.5) | (26.1) | (26) |
Insurance proceeds related to hurricane damage | 0 | 7.6 | 0 |
Investments in and advances to affiliates | (36.7) | (19.2) | (20.4) |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | 0 |
Proceeds from disposal of property | 22.1 | 8.7 | 8.8 |
Other investing activities | (8) | (3.7) | (15.5) |
Net cash provided (used) | (676.3) | (651.9) | (681.1) |
Financing activities: | |||
Net short-term borrowings | 0 | (348.1) | 159 |
Proceeds from issuance of long-term debt | 847.5 | 499.4 | 0 |
Repayment of long-term debt | (285) | (81.5) | (25.4) |
Debt issuance and retirement costs paid | (11.6) | (8) | 0 |
Dividends paid | (144.3) | (147.5) | (142.5) |
Shares repurchased | (792.5) | (243.5) | (375.6) |
Proceeds from loans from affiliates | 0 | 0 | 0 |
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 0 | 0 | 0 |
Proceeds from employee stock plans | 7 | 1.8 | 0.7 |
Net cash provided (used) | (378.9) | (327.4) | (383.8) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 48.3 | (33.6) | (36.5) |
At beginning of year | 100.5 | 134.1 | 170.6 |
At end of year | 148.8 | 100.5 | 134.1 |
Consolidating Adjustments [Member] | |||
Operating activities: | |||
Net cash provided | (215) | (241.5) | (15.9) |
Investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Purchase or replacement of assets under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Insurance proceeds related to hurricane damage | 0 | 0 | 0 |
Investments in and advances to affiliates | 23.3 | 11.6 | 1.2 |
Proceeds from repayment of loans to affiliates | (277) | (4,709.5) | (12,241.7) |
Loans to affiliates | 277 | 4,640.6 | 12,102.6 |
Proceeds from disposal of property | 0 | 0 | 0 |
Other investing activities | 1.9 | 2.4 | 3.4 |
Net cash provided (used) | 25.2 | (54.9) | (134.5) |
Financing activities: | |||
Net short-term borrowings | 0 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | 0 | 0 | 0 |
Debt issuance and retirement costs paid | 0 | 0 | 0 |
Dividends paid | 213.1 | 239.1 | 12.5 |
Shares repurchased | 0 | 0 | 0 |
Proceeds from loans from affiliates | (277) | (4,640.6) | (12,102.6) |
Repayment of loans from affiliates | 277 | 4,709.5 | 12,241.7 |
Contributions from affiliates | (23.3) | (11.6) | (1.2) |
Proceeds from employee stock plans | 0 | 0 | 0 |
Net cash provided (used) | 189.8 | 296.4 | 150.4 |
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 |
Parent [Member] | |||
Operating activities: | |||
Net cash provided | 354.4 | 223.8 | 220.4 |
Investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Purchase or replacement of assets under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Insurance proceeds related to hurricane damage | 0 | 0 | 0 |
Investments in and advances to affiliates | (14.3) | (7.8) | (0.6) |
Proceeds from repayment of loans to affiliates | 147 | 4,584.5 | 12,241.7 |
Loans to affiliates | (147) | (4,515.6) | (12,102.6) |
Proceeds from disposal of property | 0 | 0 | 0 |
Other investing activities | 0 | 0 | 0 |
Net cash provided (used) | (14.3) | 61.1 | 138.5 |
Financing activities: | |||
Net short-term borrowings | 0 | (348.1) | 159 |
Proceeds from issuance of long-term debt | 847.5 | 499.4 | 0 |
Repayment of long-term debt | (257.4) | 0 | 0 |
Debt issuance and retirement costs paid | (9.1) | (6.2) | 0 |
Dividends paid | (144.3) | (147.5) | (142.5) |
Shares repurchased | (792.5) | (243.5) | (375.6) |
Proceeds from loans from affiliates | 130 | 125 | 0 |
Repayment of loans from affiliates | (130) | (125) | 0 |
Contributions from affiliates | 0 | 0 | 0 |
Proceeds from employee stock plans | 7 | 1.8 | 0.7 |
Net cash provided (used) | (348.8) | (244.1) | (358.4) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | (8.7) | 40.8 | 0.5 |
At beginning of year | 41.5 | 0.7 | 0.2 |
At end of year | 32.8 | 41.5 | 0.7 |
KCSR [Member] | |||
Operating activities: | |||
Net cash provided | 375.4 | 460.9 | 556.6 |
Investing activities: | |||
Capital expenditures | (278.8) | (244.8) | (375.2) |
Purchase or replacement of assets under operating leases | (38.4) | (88.4) | (42.6) |
Property investments in MSLLC | 0 | 0 | 0 |
Insurance proceeds related to hurricane damage | 0 | 7.6 | 0 |
Investments in and advances to affiliates | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | 0 |
Proceeds from disposal of property | 17.8 | 4.1 | 6 |
Other investing activities | (12.5) | (6.1) | (17.2) |
Net cash provided (used) | (311.9) | (327.6) | (429) |
Financing activities: | |||
Net short-term borrowings | 0 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | (2.8) | (3.9) | (3.5) |
Debt issuance and retirement costs paid | (1.2) | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Shares repurchased | 0 | 0 | 0 |
Proceeds from loans from affiliates | 147 | 4,465.6 | 12,102.6 |
Repayment of loans from affiliates | (147) | (4,584.5) | (12,241.7) |
Contributions from affiliates | 0 | 0 | 0 |
Proceeds from employee stock plans | 0 | 0 | 0 |
Net cash provided (used) | (4) | (122.8) | (142.6) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 59.5 | 10.5 | (15) |
At beginning of year | 28.1 | 17.6 | 32.6 |
At end of year | 87.6 | 28.1 | 17.6 |
Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided | 1 | 1.2 | 0.4 |
Investing activities: | |||
Capital expenditures | (1) | (1.1) | (0.3) |
Purchase or replacement of assets under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Insurance proceeds related to hurricane damage | 0 | 0 | 0 |
Investments in and advances to affiliates | (14.3) | (7.8) | (0.6) |
Proceeds from repayment of loans to affiliates | 0 | 0 | 0 |
Loans to affiliates | 0 | 0 | 0 |
Proceeds from disposal of property | 0 | 0 | 0 |
Other investing activities | 0 | 0 | 0 |
Net cash provided (used) | (15.3) | (8.9) | (0.9) |
Financing activities: | |||
Net short-term borrowings | 0 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | 0 | (0.1) | (0.1) |
Debt issuance and retirement costs paid | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Shares repurchased | 0 | 0 | 0 |
Proceeds from loans from affiliates | 0 | 0 | 0 |
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 14.3 | 7.8 | 0.6 |
Proceeds from employee stock plans | 0 | 0 | 0 |
Net cash provided (used) | 14.3 | 7.7 | 0.5 |
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 |
Non-Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided | 587.7 | 501.3 | 266.9 |
Investing activities: | |||
Capital expenditures | (307.4) | (274.4) | (209.9) |
Purchase or replacement of assets under operating leases | (0.6) | (10.5) | 0 |
Property investments in MSLLC | (27.5) | (26.1) | (26) |
Insurance proceeds related to hurricane damage | 0 | 0 | 0 |
Investments in and advances to affiliates | (31.4) | (15.2) | (20.4) |
Proceeds from repayment of loans to affiliates | 130 | 125 | 0 |
Loans to affiliates | (130) | (125) | 0 |
Proceeds from disposal of property | 4.3 | 4.6 | 2.8 |
Other investing activities | 2.6 | 0 | (1.7) |
Net cash provided (used) | (360) | (321.6) | (255.2) |
Financing activities: | |||
Net short-term borrowings | 0 | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | (24.8) | (77.5) | (21.8) |
Debt issuance and retirement costs paid | (1.3) | (1.8) | 0 |
Dividends paid | (213.1) | (239.1) | (12.5) |
Shares repurchased | 0 | 0 | 0 |
Proceeds from loans from affiliates | 0 | 50 | 0 |
Repayment of loans from affiliates | 0 | 0 | 0 |
Contributions from affiliates | 9 | 3.8 | 0.6 |
Proceeds from employee stock plans | 0 | 0 | 0 |
Net cash provided (used) | (230.2) | (264.6) | (33.7) |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | (2.5) | (84.9) | (22) |
At beginning of year | 30.9 | 115.8 | 137.8 |
At end of year | $ 28.4 | $ 30.9 | $ 115.8 |