Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 10, 2020 | |
Document Information [Line Items] | ||
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000054480 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 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 Common Stock, Shares Outstanding | 95,020,228 | |
$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 | |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 731.7 | $ 674.8 |
Operating expenses: | ||
Compensation and benefits | 133.4 | 128.9 |
Purchased services | 53.3 | 52.8 |
Fuel costs | 74.9 | 83 |
Equipment costs | 21.9 | 30.4 |
Depreciation and amortization | 89.4 | 88.5 |
Materials and other | 64 | 63.4 |
Restructuring charges | 6 | 67.5 |
Total operating expenses | 442.9 | 514.5 |
Operating income | 288.8 | 160.3 |
Equity in net earnings of affiliates | 1 | 1.7 |
Interest expense | (34.2) | (28.2) |
Debt retirement costs | 0 | (0.6) |
Foreign exchange gain (loss) | (59.5) | 4.6 |
Other income, net | 1.4 | 0.1 |
Income before income taxes | 197.5 | 137.9 |
Income tax expense | 45.2 | 34.7 |
Net income | 152.3 | 103.2 |
Less: Net income attributable to noncontrolling interest | 0.5 | 0.4 |
Net income attributable to Kansas City Southern and subsidiaries | 151.8 | 102.8 |
Preferred stock dividends | 0.1 | 0.1 |
Net income available to common stockholders | $ 151.7 | $ 102.7 |
Earnings per share: | ||
Basic earnings per share | $ 1.59 | $ 1.02 |
Diluted earnings per share | $ 1.58 | $ 1.02 |
Average shares outstanding (in thousands): | ||
Basic | 95,662 | 100,500 |
Potentially dilutive common shares | 509 | 415 |
Diluted | 96,171 | 100,915 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 152.3 | $ 103.2 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on interest rate derivative instruments, net of tax of $1.2 million and $(1.7) million, respectively | 4.8 | (5.1) |
Reclassification adjustment from cash flow hedges included in net income, net of tax of $0.1 million | 0.5 | 0 |
Foreign currency translation adjustments | (1.7) | 0.2 |
Other comprehensive income (loss) | 3.6 | (4.9) |
Comprehensive income | 155.9 | 98.3 |
Less: Comprehensive income attributable to noncontrolling interest | 0.5 | 0.4 |
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ 155.4 | $ 97.9 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Tax effect on unrealized gain (loss) on interest rate derivative instruments | $ 1.2 | $ (1.7) |
Tax effect on reclassification adjustment from cash flow hedges included in net income | $ 0.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 91 | $ 148.8 |
Accounts receivable, net | 269.8 | 274.2 |
Materials and supplies | 143.6 | 150.6 |
Other current assets | 117.5 | 155 |
Total current assets | 621.9 | 728.6 |
Operating lease right-of-use assets | 81.4 | 158.4 |
Investments | 45.9 | 47.6 |
Property and equipment (including concession assets), net | 8,924 | 8,806.3 |
Other assets | 92.5 | 45.9 |
Total assets | 9,765.7 | 9,786.8 |
Current liabilities: | ||
Long-term debt due within one year | 17.1 | 18 |
Accounts payable and accrued liabilities | 453.6 | 473.3 |
Total current liabilities | 470.7 | 491.3 |
Long-term operating lease liabilities | 51.4 | 85.7 |
Long-term debt | 3,227 | 3,228 |
Deferred income taxes | 1,149.2 | 1,128 |
Other noncurrent liabilities and deferred credits | 105.4 | 107.9 |
Total liabilities | 5,003.7 | 5,040.9 |
Stockholders' equity: | ||
$.01 par, common stock, 400,000,000 shares authorized; 123,352,185 shares issued; 95,014,649 and 96,115,669 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 1 | 1 |
Additional paid-in capital | 925 | 843.7 |
Retained earnings | 3,532 | 3,601.3 |
Accumulated other comprehensive loss | (25.5) | (29.1) |
Total stockholders’ equity | 4,438.1 | 4,422.5 |
Noncontrolling interest | 323.9 | 323.4 |
Total equity | 4,762 | 4,745.9 |
Total liabilities and equity | 9,765.7 | 9,786.8 |
$25 Par Preferred Stock [Member] | ||
Stockholders' equity: | ||
$25 par, 4% noncumulative, preferred stock, 840,000 shares authorized, 649,736 shares issued; 222,625 shares outstanding at March 31, 2020 and December 31, 2019, respectively | $ 5.6 | $ 5.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
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 | 95,014,649 | 96,115,669 |
$25 Par Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred Stock, Par Value | $ 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 | 222,625 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Operating activities: | |||||
Net income | $ 152.3 | $ 127.9 | $ 129.1 | $ 103.2 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 89.4 | 88.5 | |||
Deferred income taxes | 19.8 | 6.9 | |||
Equity in net earnings of affiliates | (1) | (1.7) | |||
Share-based compensation | 10.3 | 6 | |||
Settlement of foreign currency derivative instruments | (3.7) | 0.7 | |||
(Gain) loss on foreign currency derivative instruments | 33.7 | (3.6) | |||
Foreign exchange (gain) loss | 25.8 | (1) | |||
Restructuring charges | 6 | 67.5 | |||
Cash payments for restructuring charges | (0.5) | (0.5) | |||
Changes in working capital items: | |||||
Accounts receivable | (2.9) | 33.8 | |||
Materials and supplies | 5.9 | (8.7) | |||
Other current assets | (6.7) | 4.2 | |||
Accounts payable and accrued liabilities | (38) | (15.6) | |||
Other, net | (7.2) | (7) | |||
Net cash provided by operating activities | 283.2 | 272.7 | |||
Investing activities: | |||||
Capital expenditures | (98.8) | (179.9) | |||
Purchase or replacement of assets under operating leases | (78.2) | 0 | |||
Property investments in MSLLC | (4.3) | (4.7) | |||
Investments in and advances to affiliates | (4.3) | (8.4) | |||
Proceeds from disposal of property | 3.3 | 2.2 | |||
Other, net | (6.3) | 1.1 | |||
Net cash used for investing activities | (188.6) | (189.7) | |||
Financing activities: | |||||
Repayment of long-term debt | (2.4) | (2.7) | |||
Dividends paid | (38.6) | (36.4) | |||
Shares repurchased | (111.7) | (50.3) | |||
Debt issuance costs paid | 0 | (1.6) | |||
Proceeds from employee stock plans | 4.4 | 0.2 | |||
Net cash used for financing activities | (148.3) | (90.8) | |||
Effect of exchange rate changes on cash | (4.1) | 0 | |||
Cash and cash equivalents: | |||||
Net decrease during each period | (57.8) | (7.8) | |||
At beginning of year | 148.8 | $ 92.7 | 100.5 | $ 100.5 | |
At end of period | $ 91 | $ 148.8 | $ 92.7 | $ 148.8 |
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, 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 | 103.2 | 102.8 | 0.4 | ||||||
Other comprehensive income (loss) | (4.9) | (4.9) | |||||||
Contribution from noncontrolling interest | 1.8 | 1.8 | |||||||
Dividends on common stock | (36.3) | (36.3) | |||||||
Dividends on preferred stock | $ (0.1) | $ (0.1) | |||||||
Share repurchases | (50.3) | 0 | 0 | (4.4) | (45.9) | ||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | (2.1) | (2.1) | |||||||
Share-based compensation | 6 | 6 | |||||||
Balance at Mar. 31, 2019 | 5,150 | 5.7 | 1 | 946.1 | 3,891.1 | (15.8) | 321.9 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 129.1 | 128.7 | 0.4 | ||||||
Other comprehensive income (loss) | (7.5) | (7.5) | |||||||
Dividends on common stock | (36) | (36) | |||||||
Dividends on preferred stock | 0 | 0 | |||||||
Share repurchases | (92.4) | (0.1) | 0 | (7.3) | (85) | ||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 2.3 | 2.3 | |||||||
Share-based compensation | 6 | 6 | |||||||
Balance at Jun. 30, 2019 | 5,151.5 | 5.6 | 1 | 947.1 | 3,898.8 | (23.3) | 322.3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 180.6 | 180.2 | 0.4 | ||||||
Other comprehensive income (loss) | (7.3) | (7.3) | |||||||
Dividends on common stock | (35.6) | (35.6) | |||||||
Dividends on preferred stock | (0.1) | (0.1) | |||||||
Share repurchases | (99.8) | 0 | 0 | (7.7) | (92.1) | ||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 2.7 | 2.7 | |||||||
Share-based compensation | 5.2 | 5.2 | |||||||
Balance at Sep. 30, 2019 | 5,197.2 | 5.6 | 1 | 947.3 | 3,951.2 | (30.6) | 322.7 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 127.9 | 127.2 | 0.7 | ||||||
Other comprehensive income (loss) | 1.5 | 1.5 | |||||||
Dividends on common stock | (38.6) | (38.6) | |||||||
Dividends on preferred stock | 0 | 0 | |||||||
Share repurchases | (467.5) | 0 | 0 | (29) | (438.5) | ||||
Forward contract for accelerated share repurchases | (82.5) | (82.5) | |||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 1.2 | 1.2 | |||||||
Share-based compensation | 6.7 | 6.7 | |||||||
Balance at Dec. 31, 2019 | 4,745.9 | 5.6 | 1 | 843.7 | 3,601.3 | (29.1) | 323.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 152.3 | 151.8 | 0.5 | ||||||
Other comprehensive income (loss) | 3.6 | 3.6 | |||||||
Dividends on common stock | (38.2) | (38.2) | |||||||
Dividends on preferred stock | (0.1) | $ (0.1) | |||||||
Share repurchases | (194.2) | $ 0 | 0 | (11.4) | (182.8) | ||||
Settlement of forward contract for accelerated share repurchase | 82.5 | 82.5 | |||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | (0.1) | (0.1) | |||||||
Share-based compensation | 10.3 | 10.3 | |||||||
Balance at Mar. 31, 2020 | $ 4,762 | $ 5.6 | $ 1 | $ 925 | $ 3,532 | $ (25.5) | $ 323.9 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Common Stock, Dividends Per Share | $ 0.4 | $ 0.4 | $ 0.36 | $ 0.36 | $ 0.36 |
$25 Par Preferred Stock [Member] | |||||
Preferred Stock, Par Value | 25 | 25 | 25 | 25 | 25 |
Preferred Stock, Dividends Per Share | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of the management of KCS, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal and recurring adjustments) necessary to reflect a fair statement of the results for interim periods in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . The results of operations for the three months ended March 31, 2020 , are not necessarily indicative of the results to be expected for the full year ending December 31, 2020 . Certain prior year amounts have been reclassified to conform to the current year presentation. During the first quarter of 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments - Credit Losses,” which required the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. Adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. During the first quarter of 2020, the Company early adopted the SEC’s, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities |
COVID-19
COVID-19 | 3 Months Ended |
Mar. 31, 2020 | |
COVID-19 [Abstract] | |
COVID-19 | COVID-19 In March 2020, the World Health Organization categorized Coronavirus Disease 2019 (“COVID-19”) as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The U.S. and Mexico governments have deemed rail transportation as “critical infrastructure” providing essential services during this global emergency. As a provider of critical infrastructure, Kansas City Southern has an obligation to keep employees working and freight moving. KCS remains focused on protecting the health and wellbeing of its employees and the communities in which it operates while assuring the continuity of its business operations. The Company’s consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s first quarter 2020 results of operations, excluding the impacts of foreign exchange losses. The Company recognized $59.5 million of foreign currency exchange losses due to the depreciation of the Mexican peso against the U.S. dollar, partially resulting from the increased market volatility driven by the global COVID-19 pandemic. The Company hedges its exposure to foreign currency fluctuations and the related impacts in Mexican income tax expense by entering into foreign currency contracts, which have historically offset on an annual basis. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which includes modifications to the limitation on business interest expense and net operating loss provisions, and provides a payment delay of employer payroll taxes during 2020 after the date of enactment. The Company estimates the payment of approximately $12.0 million of employer payroll taxes otherwise due in 2020 will be delayed with 50% due by December 31, 2021 and the remaining 50% by December 31, 2022. The CARES Act is not expected to have a material impact on the Company’s consolidated financial statements. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During 2019, the Company began implementing principles of Precision Scheduled Railroading (“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 in 2019, management approved four separate restructuring plans that totaled $168.8 million , including a $67.5 million restructuring plan in the first quarter of 2019. The restructuring plans were substantially completed in 2019. During the first quarter of 2020, the Company purchased 91 locomotives for $78.2 million that were part of two existing leases. Of the 91 locomotives, 13 were impaired during the fourth quarter of 2019. The purchase of the impaired lease locomotives resulted in $6.0 million of make-whole payments recorded as incremental restructuring charges in the first quarter of 2020. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
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 12 for revenues by geographical area. Three Months Ended March 31, 2020 2019 Chemical & Petroleum Chemicals $ 62.5 $ 60.5 Petroleum 95.8 74.3 Plastics 40.3 33.8 Total 198.6 168.6 Industrial & Consumer Products Forest Products 68.9 66.4 Metals & Scrap 62.3 57.0 Other 27.8 26.4 Total 159.0 149.8 Agriculture & Minerals Grain 77.8 72.7 Food Products 42.7 35.7 Ores & Minerals 5.8 6.5 Stone, Clay & Glass 8.2 8.0 Total 134.5 122.9 Energy Utility Coal 23.6 32.5 Coal & Petroleum Coke 11.6 10.5 Frac Sand 3.8 8.0 Crude Oil 17.3 13.6 Total 56.3 64.6 Intermodal 88.7 79.9 Automotive 53.9 57.6 Total Freight Revenues 691.0 643.4 Other Revenue 40.7 31.4 Total Revenues $ 731.7 $ 674.8 Contract Balances The amount of revenue recognized in the first quarter of 2020 from performance obligations partially satisfied in previous periods was $17.7 million . The performance obligations that were unsatisfied or partially satisfied as of March 31, 2020 , were $18.2 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 March 31, 2020 and December 31, 2019 , the accounts receivable, net balance was $269.8 million and $274.2 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 March 31, 2020 and December 31, 2019. 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 the first quarter of 2020 that was included in the opening contract liability balance was $10.5 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 Three Months Ended March 31, 2020 2019 Beginning balance $ 30.5 $ 32.4 Revenue recognized that was included in the contract liability balance at the beginning of the period (10.5 ) (15.7 ) Increases due to consideration received, excluding amounts recognized as revenue during the period 1.1 5.6 Ending balance $ 21.1 $ 22.3 |
Earnings Per Share Data
Earnings Per Share Data | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Data | Earnings Per Share Data Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share adjusts basic earnings per common share for the effects of potentially dilutive common shares, if the effect is not anti-dilutive. Potentially dilutive common shares include the dilutive effects of shares issuable under the stock option and performance award plans. 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) : Three Months Ended March 31, 2020 2019 Net income available to common stockholders for purposes of computing basic and diluted earnings per share $ 151.7 $ 102.7 Weighted-average number of shares outstanding ( in thousands ): Basic shares 95,662 100,500 Effect of dilution 509 415 Diluted shares 96,171 100,915 Earnings per share: Basic earnings per share $ 1.59 $ 1.02 Diluted earnings per share $ 1.58 $ 1.02 Potentially dilutive shares excluded from the calculation (in thousands): Stock options excluded as their inclusion would be anti-dilutive 72 212 |
Property and Equipment (includi
Property and Equipment (including Concession Assets) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment (including Concession Assets) | Property and Equipment (including Concession Assets) Property and equipment, including concession assets, and related accumulated depreciation and amortization are summarized below (in millions) : March 31, December 31, Land $ 225.2 $ 224.9 Concession land rights 141.1 141.1 Road property 7,969.3 7,962.1 Equipment 2,762.8 2,652.6 Technology and other 348.8 345.1 Construction in progress 203.5 170.2 Total property 11,650.7 11,496.0 Accumulated depreciation and amortization 2,726.7 2,689.7 Property and equipment (including concession assets), net $ 8,924.0 $ 8,806.3 Concession assets, net of accumulated amortization of $695.0 million and $678.1 million , totaled $2,342.1 million and $2,335.5 million at March 31, 2020 and December 31, 2019 , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s derivative financial instruments are measured at fair value on a recurring basis and consist of foreign currency forward and option contracts and treasury lock agreements, 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 $3,244.1 million and $3,246.0 million at March 31, 2020 and December 31, 2019 , 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) : March 31, 2020 December 31, 2019 Level 2 Level 2 Assets Foreign currency derivative instruments $ — $ 2.5 Treasury lock agreements 6.0 — Liabilities Debt instruments 3,403.0 3,535.7 Foreign currency derivative instruments 27.5 — |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 , the Company did not expect any losses as a result of default of its counterparties. Interest Rate Derivative Instruments . In March 2020, the Company executed three 30 -year treasury lock agreements with an aggregate notional value of $400.0 million and a weighted average interest rate of 1.45% . The purpose of the treasury locks is to hedge the U.S. Treasury benchmark interest rate associated with future interest payments related to the anticipated refinancing of the $444.7 million , 3.00% senior notes due May 15, 2023 (the “3.00% Senior Notes”). The Company has designated the treasury locks as cash flow hedges and recorded unrealized gains and losses in accumulated other comprehensive loss. Upon settlement, the unrealized gain or loss in accumulated other comprehensive income will be amortized to interest expense over the life of the future underlying debt issuance. 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 International Swaps and Derivatives Association agreements that include 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 March 31, 2020 and December 31, 2019 . Below is a summary of the Company’s 2020 and 2019 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 2020 and outstanding $ 155.0 Ps. 3,158.4 Ps. 20.4 — — — — Contracts executed in 2020 and settled in 2020 $ 305.0 Ps. 5,816.0 Ps. 19.1 $ 293.3 Ps. 5,816.0 Ps. 19.8 $ (7.3 ) (i) Contracts executed in 2019 and settled in 2020 $ 105.0 Ps. 2,041.2 Ps. 19.4 $ 108.6 Ps. 2,041.2 Ps. 18.8 $ 3.6 Contracts executed in 2019 and settled in 2019 (ii) $ 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 (ii) $ 20.0 Ps. 410.9 Ps. 20.5 $ 20.9 Ps. 410.9 Ps. 19.6 $ 0.9 Foreign currency zero-cost collar contracts Notional amount Cash received/(paid) on settlement Contracts executed in 2018 and settled in 2019 (ii) $ 120.0 $ 0.3 (i) During April 2020, the Company paid an additional $4.4 million for the settlement of these forward contracts. (ii) During the first quarter of 2019, the Company settled $120.0 million and $75.0 million of zero-cost collar contracts and forward contracts, respectively, resulting in cash received of $0.3 million and $0.4 million . 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 tables present the fair value of derivative instruments included in the Consolidated Balance Sheets ( in millions ): Derivative Assets Balance Sheet Location March 31, December 31, 2019 Derivatives designated as hedging instruments: Treasury lock agreements Other assets $ 6.0 $ — Total derivatives designated as hedging instruments 6.0 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets — 2.5 Total derivatives not designated as hedging instruments — 2.5 Total derivative assets $ 6.0 $ 2.5 Derivative Liabilities Balance Sheet Location March 31, December 31, 2019 Derivatives not designated as hedging instruments: Foreign currency forward contracts Accounts payable and accrued liabilities $ 27.5 $ — Total derivatives not designated as hedging instruments 27.5 — Total derivative liabilities $ 27.5 $ — The following table presents the effects of derivative instruments on the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for the three months ended March 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 2020 2019 2020 2019 Treasury lock agreements $ 6.0 $ (6.8 ) Interest expense $ (0.6 ) $ — Total $ 6.0 $ (6.8 ) $ (0.6 ) $ — Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative 2020 2019 Foreign currency forward contracts Foreign exchange gain (loss) $ (33.7 ) $ 3.6 Total $ (33.7 ) $ 3.6 See Note 7 |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 , KCS had no commercial paper outstanding. For the three months ended March 31, 2020 and 2019 , any 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. |
Share Repurchases
Share Repurchases | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Share Repurchases | 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 accelerated share repurchase (“ASR”) transactions. 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 represented approximately 85% of the total shares to be received under the agreements. The final number and total cost of shares repurchased was then based on the volume-weighted-average price of the Company’s common stock during the term of the agreements, which were settled in March 2020. The terms of the ASR agreements, structured as outlined above, were as follows: Third Party Institution Agreement Date Settlement Date Total Amount of Agreement (in millions) Initial Shares Delivered Fair Market Value of Initial Shares (in millions) Additional Shares Delivered Fair Market Value of Additional Shares (in millions) Total Shares Delivered Weighted-Average Price Per Share ASR Agreement #1 November 2019 March 2020 $ 275.0 1,511,380 $ 233.75 224,244 $ 41.25 1,735,624 $ 158.44 ASR Agreement #2 November 2019 March 2020 $ 275.0 1,511,380 $ 233.75 221,692 $ 41.25 1,733,072 $ 158.68 Total $ 550.0 3,022,760 $ 467.5 445,936 $ 82.5 3,468,696 $ 158.56 During the three months ended March 31, 2020 , KCS repurchased 1,291,635 shares of common stock for $194.2 million , which includes shares delivered to settle the ASR agreements noted above. Since inception of the 2019 Program, KCS has repurchased 4,314,395 shares of common stock for $661.7 million at an average price of $153.37 per share. The excess of repurchase price over par value is allocated between additional paid-in capital and retained earnings. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Concession Duty. Under Kansas City Southern de México, S.A. de C.V. (“KCSM”)’s 50 -year railroad concession from the Mexican government (the “Concession”), which could expire in 2047 unless extended, KCSM pays annual concession duty expense of 1.25% of gross revenues. For the three months ended March 31, 2020 , the concession duty expense, which is recorded within materials and other in operating expenses, was $4.8 million , compared to $4.2 million for the same period in 2019 . 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 March 31, 2020 , is based on an updated actuarial study of personal injury claims through November 30, 2019, and review of the last four months’ experience. Although these estimates cannot be predicted with certainty, management believes that the ultimate outcome will not have a material adverse effect on the Company’s consolidated financial statements. 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. In 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. 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. 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 at March 31, 2020 . Panama Canal Railway Company (“PCRC”) Guarantees and Indemnities. At March 31, 2020 , 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. |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2020 | |
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) : Three Months Ended March 31, Revenues 2020 2019 U.S. $ 379.9 $ 365.6 Mexico 351.8 309.2 Total revenues $ 731.7 $ 674.8 Property and equipment (including concession assets), net March 31, December 31, U.S. $ 5,559.4 $ 5,435.9 Mexico 3,364.6 3,370.4 Total property and equipment (including concession assets), net $ 8,924.0 $ 8,806.3 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 12 for revenues by geographical area. Three Months Ended March 31, 2020 2019 Chemical & Petroleum Chemicals $ 62.5 $ 60.5 Petroleum 95.8 74.3 Plastics 40.3 33.8 Total 198.6 168.6 Industrial & Consumer Products Forest Products 68.9 66.4 Metals & Scrap 62.3 57.0 Other 27.8 26.4 Total 159.0 149.8 Agriculture & Minerals Grain 77.8 72.7 Food Products 42.7 35.7 Ores & Minerals 5.8 6.5 Stone, Clay & Glass 8.2 8.0 Total 134.5 122.9 Energy Utility Coal 23.6 32.5 Coal & Petroleum Coke 11.6 10.5 Frac Sand 3.8 8.0 Crude Oil 17.3 13.6 Total 56.3 64.6 Intermodal 88.7 79.9 Automotive 53.9 57.6 Total Freight Revenues 691.0 643.4 Other Revenue 40.7 31.4 Total Revenues $ 731.7 $ 674.8 |
Schedule of Changes in Contract Liabilities | The following tables summarize the changes in contract liabilities (in millions) : Contract liabilities Three Months Ended March 31, 2020 2019 Beginning balance $ 30.5 $ 32.4 Revenue recognized that was included in the contract liability balance at the beginning of the period (10.5 ) (15.7 ) Increases due to consideration received, excluding amounts recognized as revenue during the period 1.1 5.6 Ending balance $ 21.1 $ 22.3 |
Earnings Per Share Data (Tables
Earnings Per Share Data (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) : Three Months Ended March 31, 2020 2019 Net income available to common stockholders for purposes of computing basic and diluted earnings per share $ 151.7 $ 102.7 Weighted-average number of shares outstanding ( in thousands ): Basic shares 95,662 100,500 Effect of dilution 509 415 Diluted shares 96,171 100,915 Earnings per share: Basic earnings per share $ 1.59 $ 1.02 Diluted earnings per share $ 1.58 $ 1.02 |
Schedule of Potentially Dilutive Shares Excluded from the Calculation | Potentially dilutive shares excluded from the calculation (in thousands): Stock options excluded as their inclusion would be anti-dilutive 72 212 |
Property and Equipment (inclu_2
Property and Equipment (including Concession Assets) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment by Type | Property and equipment, including concession assets, and related accumulated depreciation and amortization are summarized below (in millions) : March 31, December 31, Land $ 225.2 $ 224.9 Concession land rights 141.1 141.1 Road property 7,969.3 7,962.1 Equipment 2,762.8 2,652.6 Technology and other 348.8 345.1 Construction in progress 203.5 170.2 Total property 11,650.7 11,496.0 Accumulated depreciation and amortization 2,726.7 2,689.7 Property and equipment (including concession assets), net $ 8,924.0 $ 8,806.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) : March 31, 2020 December 31, 2019 Level 2 Level 2 Assets Foreign currency derivative instruments $ — $ 2.5 Treasury lock agreements 6.0 — Liabilities Debt instruments 3,403.0 3,535.7 Foreign currency derivative instruments 27.5 — |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Derivative Instruments | Below is a summary of the Company’s 2020 and 2019 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 2020 and outstanding $ 155.0 Ps. 3,158.4 Ps. 20.4 — — — — Contracts executed in 2020 and settled in 2020 $ 305.0 Ps. 5,816.0 Ps. 19.1 $ 293.3 Ps. 5,816.0 Ps. 19.8 $ (7.3 ) (i) Contracts executed in 2019 and settled in 2020 $ 105.0 Ps. 2,041.2 Ps. 19.4 $ 108.6 Ps. 2,041.2 Ps. 18.8 $ 3.6 Contracts executed in 2019 and settled in 2019 (ii) $ 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 (ii) $ 20.0 Ps. 410.9 Ps. 20.5 $ 20.9 Ps. 410.9 Ps. 19.6 $ 0.9 Foreign currency zero-cost collar contracts Notional amount Cash received/(paid) on settlement Contracts executed in 2018 and settled in 2019 (ii) $ 120.0 $ 0.3 (i) During April 2020, the Company paid an additional $4.4 million for the settlement of these forward contracts. (ii) During the first quarter of 2019, the Company settled $120.0 million and $75.0 million of zero-cost collar contracts and forward contracts, respectively, resulting in cash received of $0.3 million and $0.4 million . |
Schedule of Derivative Instruments in Consolidated Balance Sheets, Fair Value | The following tables present the fair value of derivative instruments included in the Consolidated Balance Sheets ( in millions ): Derivative Assets Balance Sheet Location March 31, December 31, 2019 Derivatives designated as hedging instruments: Treasury lock agreements Other assets $ 6.0 $ — Total derivatives designated as hedging instruments 6.0 — Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets — 2.5 Total derivatives not designated as hedging instruments — 2.5 Total derivative assets $ 6.0 $ 2.5 Derivative Liabilities Balance Sheet Location March 31, December 31, 2019 Derivatives not designated as hedging instruments: Foreign currency forward contracts Accounts payable and accrued liabilities $ 27.5 $ — Total derivatives not designated as hedging instruments 27.5 — Total derivative liabilities $ 27.5 $ — |
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | The following table presents the effects of derivative instruments on the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for the three months ended March 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 2020 2019 2020 2019 Treasury lock agreements $ 6.0 $ (6.8 ) Interest expense $ (0.6 ) $ — Total $ 6.0 $ (6.8 ) $ (0.6 ) $ — Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivative Amount of Gain/(Loss) Recognized in Income on Derivative 2020 2019 Foreign currency forward contracts Foreign exchange gain (loss) $ (33.7 ) $ 3.6 Total $ (33.7 ) $ 3.6 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
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 Settlement Date Total Amount of Agreement (in millions) Initial Shares Delivered Fair Market Value of Initial Shares (in millions) Additional Shares Delivered Fair Market Value of Additional Shares (in millions) Total Shares Delivered Weighted-Average Price Per Share ASR Agreement #1 November 2019 March 2020 $ 275.0 1,511,380 $ 233.75 224,244 $ 41.25 1,735,624 $ 158.44 ASR Agreement #2 November 2019 March 2020 $ 275.0 1,511,380 $ 233.75 221,692 $ 41.25 1,733,072 $ 158.68 Total $ 550.0 3,022,760 $ 467.5 445,936 $ 82.5 3,468,696 $ 158.56 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) : Three Months Ended March 31, Revenues 2020 2019 U.S. $ 379.9 $ 365.6 Mexico 351.8 309.2 Total revenues $ 731.7 $ 674.8 Property and equipment (including concession assets), net March 31, December 31, U.S. $ 5,559.4 $ 5,435.9 Mexico 3,364.6 3,370.4 Total property and equipment (including concession assets), net $ 8,924.0 $ 8,806.3 |
COVID-19 (Details)
COVID-19 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
COVID-19 [Abstract] | ||
Foreign exchange loss | $ (59.5) | $ 4.6 |
Amount of employer payroll taxes for which the Company estimates payment will be delayed due to CARES Act. | $ 12 | |
Percentage of payroll taxes delayed due to CARES Act that are due by December 31, 2021 | 50.00% | |
Percentage of payroll taxes delayed due to CARES Act that are due by December 31, 2022. | 50.00% |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)locomotivesLeases | Dec. 31, 2019locomotives | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)restructuring_plans | |
Asset Impairment and Restructuring Costs [Line Items] | ||||
Restructuring charges | $ 6 | $ 67.5 | ||
PSR Initiatives [Member] | ||||
Asset Impairment and Restructuring Costs [Line Items] | ||||
Number of separate restructuring plans approved by management | restructuring_plans | 4 | |||
Restructuring charges | $ 6 | $ 67.5 | $ 168.8 | |
Number of leased locomotives purchased | locomotives | 91 | |||
Amount paid by the Company to purchase leased locomotives | $ 78.2 | |||
Number of existing leases that locomotives were a part of prior to purchase | Leases | 2 | |||
Number of leased locomotives purchased that were impaired | locomotives | 13 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 731.7 | $ 674.8 |
Freight Revenues [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 691 | 643.4 |
Chemical and Petroleum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 198.6 | 168.6 |
Chemicals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 62.5 | 60.5 |
Petroleum [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 95.8 | 74.3 |
Plastics [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 40.3 | 33.8 |
Industrial and Consumer Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 159 | 149.8 |
Forest Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 68.9 | 66.4 |
Metals and Scrap [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 62.3 | 57 |
Other Industrial and Consumer Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 27.8 | 26.4 |
Agriculture and Minerals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 134.5 | 122.9 |
Grain [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 77.8 | 72.7 |
Food Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 42.7 | 35.7 |
Ores and Minerals [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5.8 | 6.5 |
Stone, Clay and Glass [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8.2 | 8 |
Energy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 56.3 | 64.6 |
Utility Coal [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 23.6 | 32.5 |
Coal and Petroleum Coke [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11.6 | 10.5 |
Frac Sand [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3.8 | 8 |
Crude Oil [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17.3 | 13.6 |
Intermodal [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 88.7 | 79.9 |
Automotive [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 53.9 | 57.6 |
Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 40.7 | $ 31.4 |
Revenue Narrative (Details)
Revenue Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Amount of revenue recognized from performace obligations partially satisfied in previous periods | $ 17.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Accounts receivable, net | 269.8 | $ 274.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations that were unsatisfied or partially satisfied | $ 18.2 | |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contract Liabilities [Roll Forward] | ||
Beginning balance | $ 30.5 | $ 32.4 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (10.5) | (15.7) |
Increases due to consideration received, excluding amounts recognized as revenue during the period | 1.1 | 5.6 |
Ending balance | $ 21.1 | $ 22.3 |
Earnings Per Share Data (Detail
Earnings Per Share Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | ||
Net income available to common stockholders for purposes of computing basic earnings per share | $ 151.7 | $ 102.7 |
Net income available to common stockholders for purposes of computing diluted earnings per share | $ 151.7 | $ 102.7 |
Weighted-Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Basic shares | 95,662 | 100,500 |
Effect of dilution | 509 | 415 |
Diluted | 96,171 | 100,915 |
Earnings Per Share [Abstract] | ||
Basic earnings per share | $ 1.59 | $ 1.02 |
Diluted earnings per share | $ 1.58 | $ 1.02 |
Stock Options [Member] | ||
Potentially Dilutive Shares Excluded from the Calculation [Abstract] | ||
Stock options excluded as their inclusion would be anti-dilutive | 72 | 212 |
Property and Equipment (Inclu_3
Property and Equipment (Including Concession Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment (including concession assets), gross | $ 11,650.7 | $ 11,496 |
Accumulated depreciation and amortization | 2,726.7 | 2,689.7 |
Property and equipment (including concession assets), net | 8,924 | 8,806.3 |
Accumulated amortization | 695 | 678.1 |
Concession assets, net of accumulated amortization | 2,342.1 | 2,335.5 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment (including concession assets), gross | 225.2 | 224.9 |
Concession land rights [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment (including concession assets), gross | 141.1 | 141.1 |
Road property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment (including concession assets), gross | 7,969.3 | 7,962.1 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment (including concession assets), gross | 2,762.8 | 2,652.6 |
Technology and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment (including concession assets), gross | 348.8 | 345.1 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment (including concession assets), gross | $ 203.5 | $ 170.2 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of Company's debt | $ 3,244.1 | $ 3,246 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt instruments | 3,403 | 3,535.7 |
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 | 0 | 2.5 |
Fair value of foreign currency derivative instruments, liabilities | 27.5 | 0 |
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, assets | $ 6 | $ 0 |
Derivative Instruments Interest
Derivative Instruments Interest Rate Derivative Instruments (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2020USD ($)Treasury_Lock_Agreements | Mar. 31, 2020USD ($)Treasury_Lock_Agreements | |
Derivative [Line Items] | ||
Term of future forecasted debt issuance | 30 years | |
Senior Notes [Member] | 3.00% Senior Notes due May 15, 2023 [Member] | ||
Derivative [Line Items] | ||
Senior notes anticipated to be refinanced | $ 444.7 | $ 444.7 |
Senior notes, stated interest rate | 3.00% | 3.00% |
Senior notes, maturity date | May 15, 2023 | |
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 | 3 | 3 |
Aggregate notional value of treasury lock agreements | $ 400 | $ 400 |
Weighted average interest rate of treasury lock agreements | 1.45% | 1.45% |
Derivative Instruments Summary
Derivative Instruments Summary of Foreign Currency Derivative Contracts (Details) $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 17, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020MXN ($)$ / $ | Mar. 31, 2020USD ($)$ / $ | Dec. 31, 2019MXN ($)$ / $ | Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2018MXN ($)$ / $ | Dec. 31, 2018USD ($)$ / $ | ||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | $ (3.7) | $ 0.7 | |||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2020 and Settled in 2020 [Member] | Foreign Exchange Gain (Loss) [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | [1] | (7.3) | |||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2020 and Settled in 2020 [Member] | Foreign Exchange Gain (Loss) [Member] | Subsequent Event [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | $ (4.4) | ||||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2019 and Settled in 2020 [Member] | Foreign Exchange Gain (Loss) [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | $ 3.6 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2019 and Settled in 2019 [Member] | Foreign Exchange Gain (Loss) [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | [2] | $ 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 (Loss) [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | [2] | 0.9 | |||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2018 and 2019 and Settled in 2019 [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of foreign currency contracts | 75 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Contracts Executed in 2018 and 2019 and Settled in 2019 [Member] | Foreign Exchange Gain (Loss) [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | 0.4 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | Contracts Executed in 2020 and Outstanding [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of foreign currency contracts | $ 3,158.4 | $ 155 | |||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 20.4 | 20.4 | |||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | Contracts Executed in 2020 and Settled in 2020 [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of foreign currency contracts | $ 5,816 | $ 305 | |||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.1 | 19.1 | |||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Initial Derivative Instruments [Member] | Contracts Executed in 2019 and Settled in 2020 [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of foreign currency contracts | $ 2,041.2 | $ 105 | |||||||||||
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 | [2] | $ 7,892.5 | $ 400 | ||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | [2] | 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 | [2] | $ 410.9 | $ 20 | ||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | [2] | 20.5 | 20.5 | ||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instruments [Member] | Contracts Executed in 2020 and Settled in 2020 [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of foreign currency contracts | $ 5,816 | $ 293.3 | |||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 19.8 | 19.8 | |||||||||||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Offsetting Derivative Instruments [Member] | Contracts Executed in 2019 and Settled in 2020 [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of foreign currency contracts | $ 2,041.2 | $ 108.6 | |||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | 18.8 | 18.8 | |||||||||||
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 | [2] | $ 7,892.5 | $ 410.7 | ||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | [2] | 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 | [2] | $ 410.9 | $ 20.9 | ||||||||||
Weighted-average exchange rate of foreign currency forward contracts | $ / $ | [2] | 19.6 | 19.6 | ||||||||||
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 | $ 120 | [2] | ||||||||||
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 (Loss) [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash received/(paid) on settlement of foreign currency contracts | $ 0.3 | $ 0.3 | [2] | ||||||||||
[1] | During April 2020, the Company paid an additional $4.4 million for the settlement of these forward contracts. | ||||||||||||
[2] | During the first quarter of 2019, the Company settled $120.0 million and $75.0 million of zero-cost collar contracts and forward contracts, respectively, resulting in cash received of $0.3 million |
Derivative Instruments Fair Val
Derivative Instruments Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 6 | $ 2.5 |
Derivative liabilities, fair value | 27.5 | 0 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 6 | 0 |
Designated as Hedging Instrument [Member] | Treasury Lock Agreements [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 6 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 2.5 |
Derivative liabilities, fair value | 27.5 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | 0 | 2.5 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $ 27.5 | $ 0 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments Affecting the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in OCI on Derivative | $ 6 | $ (6.8) |
Amount of Gain/(Loss) Reclassified from AOCI into Income | (0.6) | 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 | 6 | (6.8) |
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 | (0.6) | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | (33.7) | 3.6 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Foreign Exchange Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivative | $ (33.7) | $ 3.6 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - KCS [Member] - Commercial Paper [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
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 |
Share Repurchases (Details)
Share Repurchases (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | |||||
Mar. 31, 2020USD ($)shares | Nov. 30, 2019USD ($)shares | Mar. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)agreements | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares repurchased | $ 194,200 | $ 467,500 | $ 99,800 | $ 92,400 | $ 50,300 | |||
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 | 1,291,635 | 4,314,395 | ||||||
Shares repurchased | $ 194,200 | $ 661,700 | ||||||
Average price of shares repurchased | $ / shares | $ 153.37 | |||||||
Common Stock [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% | |||||||
Shares repurchased | shares | 3,468,696 | |||||||
Weighted-average price of all shares repurchased under ASR Agreement(s) | $ / shares | $ 158.56 | |||||||
Common Stock [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 | |||||||
Common Stock [Member] | Accelerated Share Repurchase Agreements [Member] | Additional Shares Delivered [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares repurchased | shares | 445,936 | |||||||
Shares repurchased | $ 82,500 | |||||||
Common Stock [Member] | ASR Agreement 1 [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount paid under ASR agreements | $ 275,000 | |||||||
Shares repurchased | shares | 1,735,624 | |||||||
Weighted-average price of all shares repurchased under ASR Agreement(s) | $ / shares | $ 158.44 | |||||||
Common Stock [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 | |||||||
Common Stock [Member] | ASR Agreement 1 [Member] | Additional Shares Delivered [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares repurchased | shares | 224,244 | |||||||
Shares repurchased | $ 41,250 | |||||||
Common Stock [Member] | ASR Agreement 2 [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Amount paid under ASR agreements | $ 275,000 | |||||||
Shares repurchased | shares | 1,733,072 | |||||||
Weighted-average price of all shares repurchased under ASR Agreement(s) | $ / shares | $ 158.68 | |||||||
Common Stock [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 | |||||||
Common Stock [Member] | ASR Agreement 2 [Member] | Additional Shares Delivered [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares repurchased | shares | 221,692 | |||||||
Shares repurchased | $ 41,250 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 | $ 4.8 | $ 4.2 |
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 |
Geographic Information (Informa
Geographic Information (Information by Geographic Area) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)Segments | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of reportable business segments of the Company | Segments | 1 | ||
Revenues | $ 731.7 | $ 674.8 | |
Property and equipment (including concession assets), net | 8,924 | $ 8,806.3 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 379.9 | 365.6 | |
Property and equipment (including concession assets), net | 5,559.4 | 5,435.9 | |
MEXICO | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 351.8 | $ 309.2 | |
Property and equipment (including concession assets), net | $ 3,364.6 | $ 3,370.4 |