Kansas City Southern (KSU) 10-K 12 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 04, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	KANSAS CITY SOUTHERN
Entity Central Index Key	0000054480
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			1.49
Entity Common Stock, Shares Outstanding (actual number)		96,519,854

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions, except Share data in Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Statements of Income [Abstract]
Revenues	1480.2	1852.1	1742.8
Operating expenses:
Compensation and benefits	328.8	369.9	384
Purchased services	171.3	209.1	198.4
Fuel	189.4	324.6	270.2
Equipment costs	164.1	178.6	184.6
Depreciation and amortization	182.5	168.6	159
Casualties and insurance	43.1	72.7	69.3
Materials and other	132.8	138.4	114.9
Total operating expenses	1,212	1461.9	1380.4
Operating income	268.2	390.2	362.4
Equity in net earnings of unconsolidated affiliates	7.7	18	11.4
Interest expense	-173.7	-138.9	-156.7
Debt retirement costs	-5.9	-5.6	-6.9
Foreign exchange gain (loss)	2.1	(21)	-0.9
Other income, net	5.2	6	12
Income before income taxes and noncontrolling interest	103.6	248.7	221.3
Income tax expense	34.6	64.5	67.1
Net income	69	184.2	154.2
Noncontrolling interest	1	0.3	0.4
Net income attributable to Kansas City Southern and subsidiaries	68	183.9	153.8
Preferred stock dividends	11	15.2	19.8
Net income available to common shareholders	$57	168.7	$134
Earnings per share:
Basic earnings per share	0.61	2.02	1.77
Diluted earnings per share	0.61	1.86	1.57
Average shares outstanding (in thousands):
Basic	93,145	83,674	75,832
Potentially dilutive common shares	504	14,928	21,784
Diluted	93,649	98,602	97,616

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	117.5	229.9
Accounts receivable, net	139.4	163.8
Restricted funds	35.8	34
Materials and supplies	106.4	96.3
Deferred income taxes	151.7	62.8
Other current assets	63	98.8
Total current assets	613.8	685.6
Investments	46.8	60.5
Property and Equipment (including concession assets), net	4747.2	4598.4
Deferred income taxes	0	36.4
Other assets	71.3	58.3
Total assets	5479.1	5439.2
Current liabilities:
Debt due within one year	68.1	637.4
Accounts payable and accrued liabilities	342.7	455.4
Total current liabilities	410.8	1092.8
Long-term debt	1911.9	1448.7
Deferred income taxes	567.1	492.4
Other noncurrent liabilities and deferred credits	247.7	220.1
Total liabilities	3137.5	3,254
Stockholders' equity:
$.01 par, common stock, 400,000,000 shares authorized; 110,583,068 and 106,252,860 shares issued at December 31, 2009 and 2008, respectively; 96,213,346 and 91,463,762 shares outstanding at December 31, 2009 and 2008, respectively	0.9	0.9
Paid-in capital	661.4	572.3
Retained earnings	1394.6	1337.6
Accumulated other comprehensive loss	-4.4	-5.6
Total stockholders' equity	2058.8	1911.5
Noncontrolling interest	282.8	273.7
Total equity	2341.6	2185.2
Total liabilities and equity	5479.1	5439.2
$25 Par Preferred Stock
Stockholders' equity:
Preferred Stock	6.1	6.1
Total equity	6.1	6.1
Series C
Stockholders' equity:
Total equity		0
Series D
Stockholders' equity:
Preferred Stock	0.2	0.2
Total equity	0.2	0.2

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008	12 Months Ended Dec. 31, 2009 $25 Par Preferred Stock	12 Months Ended Dec. 31, 2008 $25 Par Preferred Stock	12 Months Ended Dec. 31, 2009 Series D	12 Months Ended Dec. 31, 2008 Series D
Stockholders' equity:
Preferred stock, par value			25	25	1	1
Preferred stock, shares authorized (actual number)			840,000	840,000	210,000	210,000
Preferred stock, shares issued (actual number)			649,736	649,736	210,000	210,000
Preferred stock, shares outstanding (actual number)			242,170	242,170	209,995	209,995
Cumulative perpetual preferred stock liquidation preference					1,000	1,000
Preferred stock dividend rate			4%	4%	5.125%	5.125%
Common stock, par value	0.01	0.01
Common stock, shares authorized (actual number)	400,000,000	400,000,000
Common stock, shares issued (actual number)	110,583,068	106,252,860
Common stock, shares outstanding (actual number)	96,213,346	91,463,762

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities:
Net income	$69	184.2	154.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	182.5	168.6	159
Deferred income taxes	31.4	63.8	66.3
Equity in undistributed earnings of unconsolidated affiliates	-7.7	(18)	-11.4
Share-based compensation	9.9	7.4	11.1
Excess tax benefit from share-based compensation	-1.5	-5.6	-2.4
Other deferred compensation	3.3	-1.9	-2.1
Distributions from unconsolidated affiliates	7.3	18.9	4
Gain on sale of assets	-3.8	-3.4	-5.7
Debt retirement costs	5.9	5.6	6.9
Changes in working capital items:
Accounts receivable	23.3	52.6	81
Materials and supplies	-12.3	(6)	-12.4
Other current assets	8.6	(8)	0.9
Accounts payable and accrued liabilities	-19.9	-42.8	-65.4
Other, net	-3.1	-2.4	-16.2
Net cash provided by operating activities	292.9	413	367.8
Investing activities:
Capital expenditures	-349.2	-533.8	-396.8
Proceeds from disposal of property	13.9	20.9	16.6
Contribution from NS for MSLLC	0	27	143.4
Property investments in MSLLC	(22)	-30.4	(118)
Proceeds and repayments from loans to equity affiliates	0	0	14.4
Other, net	10.9	-21.7	-26.4
Net cash used for investing activities	-346.4	(538)	-366.8
Financing activities:
Proceeds from issuance of long-term debt	202.1	580.1	326.6
Repayment of long-term debt	-319.1	-262.8	-311.3
Debt costs	-9.3	-16.9	-19.6
Proceeds from common stock issuance	73.9	0	0
Proceeds from stock plans	3	8.6	0.7
Excess tax benefit from share-based compensation	1.5	5.6	2.4
Preferred stock dividends paid	(11)	-15.2	-23.3
Net cash provided by (used for) financing activities	-58.9	299.4	-24.5
Cash and cash equivalents:
Net increase (decrease) during each year	-112.4	174.4	-23.5
At beginning of year	229.9	55.5	79
At end of year	117.5	229.9	55.5
Non-cash investing and financing activities:
Capital expenditures accrued but not yet paid at year end	24.9	91.2	48.5
Capital lease obligations incurred	0	13.1	7.2
Non-cash asset acquisitions	21.3	21.8	0
Property contribution from NS for MSLLC	9.6	3.5	0
Property dividend from Southern Capital	0	0	10.3
Cash payments:
Interest paid, net of amounts capitalized	174	136.8	141.5
Income tax payments net of refunds	3.5	1.5	13.6

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity and Comprehensive Income (USD $)
In Millions	$25 Par Preferred Stock	Series C	Series D	$.01 Par Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Total
Beginning Balance at Dec. 31, 2006	6.1	0.4	0.2	0.7	$523	1050.7	1.3	100.3	1682.7
Comprehensive income:
Net income						153.8		0.4	154.2
Prior service cost and amortization net of tax of $0.6 million and $0.1 million and $(0.1) million for the year ended 2007, 2008 and 2009 respectively							-0.9		-0.9
Comprehensive income						153.8	-0.9	0.4	153.3
Contributions from noncontrolling interest								143.4	143.4
Distribution to noncontrolling interest								-1.1	-1.1
Dividends on $25 par preferred stock ($1.00/share) and ($1.00/share) and ($1.00/share), on Series C cumulative preferred stock ($37.53/share), ($10.62/share), on Series D cumulative preferred stock ($90.67/share), ($51.24/share) and ($51.24/share) for the year ended 2007, 2008 and 2009 respectively	-0.2	(15)	-8.1
Options exercised and stock subscribed				0.1	2				2.1
Tax benefit from share-based compensation					2.4				2.4
Share-based compensation					11.1				11.1
Adjustment to income tax payable upon adoption of certain provisions of FASB ASC 740-10 (formerly FIN 48)						-1.3			-1.3
Ending Balance at Dec. 31, 2007	6.1	0.4	0.2	0.8	549.5	1168.9	0.4	243	1969.3
Comprehensive income:
Net income						183.9		0.3	184.2
Unrealized gain (loss) on cash flow hedges, net of tax of $(2.1) million and $(0.9) million for the year ended 2008 and 2009 respectively							-3.4		-3.4
Reclassification adjustment from cash flow hedges included in net income, net of tax of $(0.2) million and $1.3 million for the year ended 2008 and 2009 respectively							-0.3		-0.3
Prior service cost and amortization net of tax of $0.6 million and $0.1 million and $(0.1) million for the year ended 2007, 2008 and 2009 respectively							0.6		0.6
Cumulative translation adjustment - FTVM, net of tax of $(1.1) million and $(0.1) million for the year ended 2008 and 2009 respectively							-2.9		-2.9
Comprehensive income						183.9	(6)	0.3	178.2
Contributions from noncontrolling interest								30.9	30.9
Distribution to noncontrolling interest								-0.5	-0.5
Conversion of Series C cumulative convertible preferred stock		-0.4		0.1	0.3				0
Dividends on $25 par preferred stock ($1.00/share) and ($1.00/share) and ($1.00/share), on Series C cumulative preferred stock ($37.53/share), ($10.62/share), on Series D cumulative preferred stock ($90.67/share), ($51.24/share) and ($51.24/share) for the year ended 2007, 2008 and 2009 respectively	-0.2	-4.2	-10.8
Options exercised and stock subscribed					9.5				9.5
Tax benefit from share-based compensation					5.6				5.6
Share-based compensation					7.4				7.4
Ending Balance at Dec. 31, 2008	6.1	0	0.2	0.9	572.3	1337.6	-5.6	273.7	2185.2
Comprehensive income:
Net income						68		1	69
Unrealized gain (loss) on cash flow hedges, net of tax of $(2.1) million and $(0.9) million for the year ended 2008 and 2009 respectively							-1.6		-1.6
Reclassification adjustment from cash flow hedges included in net income, net of tax of $(0.2) million and $1.3 million for the year ended 2008 and 2009 respectively							2.3		2.3
Prior service cost and amortization net of tax of $0.6 million and $0.1 million and $(0.1) million for the year ended 2007, 2008 and 2009 respectively							-0.2		-0.2
Cumulative translation adjustment - FTVM, net of tax of $(1.1) million and $(0.1) million for the year ended 2008 and 2009 respectively							0.7		0.7
Comprehensive income						68	1.2	1	70.2
Contributions from noncontrolling interest								9.6	9.6
Distribution to noncontrolling interest								-1.5	-1.5
Common stock issued					73.9				73.9
Dividends on $25 par preferred stock ($1.00/share) and ($1.00/share) and ($1.00/share), on Series C cumulative preferred stock ($37.53/share), ($10.62/share), on Series D cumulative preferred stock ($90.67/share), ($51.24/share) and ($51.24/share) for the year ended 2007, 2008 and 2009 respectively	-0.2		-10.8
Options exercised and stock subscribed					3.8				3.8
Tax benefit from share-based compensation					1.5				1.5
Share-based compensation					9.9				9.9
Ending Balance at Dec. 31, 2009	6.1		0.2	0.9	661.4	1394.6	-4.4	282.2	2341.6

1_Consolidated Statements of Ch

Consolidated Statements of Changes in Equity (Parenthetical) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
$25 Par Preferred Stock
Comprehensive income:
Preferred stock, par value	25	25
$25 Par Preferred Stock | Retained Earnings
Comprehensive income:
Preferred stock, par value	25	25	25
Dividends per share	$1	$1	$1
Series C | Retained Earnings
Comprehensive income:
Dividends per share		10.62	37.53
Series D
Comprehensive income:
Preferred stock, par value	1	1
Series D | Paid-in Capital
Comprehensive income:
Dividends per share			90.67
Series D | Retained Earnings
Comprehensive income:
Dividends per share	51.24	51.24	90.67
Accumulated Other Comprehensive Income (Loss)
Comprehensive income:
Tax effect on unrealized gain (loss) on cash flow hedges	-0.9	-2.1
Tax effect on reclassification adjustment from cash flow hedges included in net income	1.3	-0.2
Tax effect on prior service cost and amortization	-0.1	0.1	0.6
Tax effect on cumulative transaction adjustment-FTVM	-0.1	-1.1

Description of the Business

Description of the Business
	12 Months Ended Dec. 31, 2009 USD / shares
Description of the Business [Abstract]
Description of the Business	Note1. Description of the Business Kansas City Southern (KCS or the Company), a Delaware corporation, was initially organized in 1962 as Kansas City Southern Industries, Inc. In 2002, the Company formally changed its name to Kansas City Southern. KCS is a holding company with principal operations in rail transportation. The Company is engaged primarily in the freight rail transportation business operating through a single coordinated rail network under one reportable business segment. Effective January1, 2008, the Company realigned its segments into one reportable segment to reflect the strategic focus on the single coordinated rail network. Prior to January1, 2008, the Company reported two segments. All prior period segment information has been recast to conform to the current year presentation. 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 ClassI rail carriers. KCS 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; Kansas City Southern de Mxico, S.A. de C.V. (KCSM), is a wholly-owned subsidiary which operates under the rights granted by the Concession acquired from the Mexican government in 1997 (the Concession) as described below; Mexrail, Inc. (Mexrail), a wholly-owned consolidated subsidiary; which wholly owns The Texas Mexican Railway Company (Tex-Mex); Meridian Speedway, LLC (MSLLC), a seventy-two percent owned consolidated affiliate. On December1, 2005, KCS and KCSR entered into a transaction agreement with Norfolk Southern Corporation (NS) and its wholly-owned subsidiary, The Alabama Great Southern Railroad Company (AGS), providing for the formation of a limited liability company between the parties relating to the ownership and improvement of the KCSR rail line between Meridian, Mississippi and Shreveport, Louisiana, which is the portion of the KCSR rail line between Dallas, Texas and Meridian known as the Meridian Speedway Combined with equity investments in: Panama Canal Railway Company (PCRC), a fifty percent owned unconsolidated affiliate which owns all of the common stock of Panarail Tourism Company (Panarail); Southern Capital Corporation, LLC (Southern Capital), a fifty percent owned unconsolidated affiliate that owns and leases locomotives and other equipment; Ferrocarril y Terminal del Valle de Mxico, 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. KCS completed its acquisition of control of Grupo KCSM, S.A. de C.V. (Grupo KCSM), formerly known as Grupo Transportacin Ferroviaria Mexicana,

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies [Abstract]
Significant Accounting Policies	Note2. 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. Basis of Presentation.During the third quarter of 2009, the Company identified that changes in accounts payable and accrued liabilities related to capital spending had not been correctly presented in the Companys prior period consolidated cash flow statements. Changes in these accruals had previously been classified within cash flows from operating activities and should have been classified as capital expenditures within investing activities, in order to report capital expenditures on a cash basis rather than on an accrual basis. The accompanying consolidated cash flow statements have been revised to present capital expenditures on a cash basis for the years ended December31, 2008 and 2007. This revision did not impact the change in cash and cash equivalents as previously reported, however, net cash provided by operating activities decreased by $42.7million, from $455.7million to $413.0million and capital expenditures and cash used by investing activities decreased by $42.7million from $580.7million to $538.0million for the year ended December31, 2008. For the year ended December31, 2007, net cash provided by operating activities decreased by $13.7million from $381.5million to $367.8million and capital expenditures and cash used by investing activities decreased by $13.7million from $380.5million to $366.8million. This revision did not impact operating income or net income, working capital, any earnings per share measures as previously reported. Use of Estimates.The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States (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, environmental remediation, personal injury claims, and deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates. Revenue Recognition.The Company recognizes freig

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	Note3. Earnings Per Share Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Nonvested stock awards granted to employees and officers is included in weighted average shares as it is earned for purposes of computing basic earnings per common share. 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 upon the conversion of preferred stock to common stock and shares issuable under the Stock Option and Performance Award Plan. The following table reconciles the weighted average shares used for the basic earnings per share computation to the shares used for the diluted earnings per share computation (in thousands): 2009 2008 2007 Basic shares 93,145 83,674 75,832 Additional weighted average shares attributable to: Convertible preferred stock 13,882 20,389 Stock options 502 987 1,327 Nonvested shares 2 59 68 Diluted shares 93,649 98,602 97,616 Potentially dilutive shares excluded from the calculation (in thousands): 2009 2008 2007 Stock options where the exercise price is greater than the average market price of common shares 50 64 39 Convertible preferred stock which are anti-dilutive 7,000 The following table reconciles net income available to common stockholders for purposes of basic earnings per share to net income for purposes of diluted earnings per share (in millions): 2009 2008 2007 Net income available to common stockholders for purposes of computing basic earnings per share $ 57.0 $ 168.7 $ 134.0 Effect of dividends on conversion of convertible preferred stock 14.9 19.6 Net income available to common stockholders for purposes of computing diluted earnings per share $ 57.0 $ 183.6 $ 153.6

Property and Equipment

Property and Equipment (including Concession Assets)
	12 Months Ended Dec. 31, 2009 USD / shares
Property and Equipment [Abstract]
Property and Equipment	Note4. Property and Equipment (including Concession Assets) Property and Equipment.Property and equipment, including concession assets, and related accumulated depreciation and amortization are summarized below at December 31 (in millions): 2009 2009 2008 Depreciation Rate Land $ 162.9 $ 162.7 Concession land rights 137.6 138.0 1.0 % Road property Rail and other track material 1,320.4 1,255.7 2.8 % Ties 1,000.6 912.3 3.6 % Grading 729.1 698.8 0.9 % Bridges and tunnels 513.2 464.1 1.4 % Ballast 434.1 364.0 3.5 % Other (i) 675.3 609.5 3.0 % Road property total 4,672.7 4,304.4 Equipment Locomotives 487.8 488.4 6.9 % Freight cars 149.5 164.2 5.2 % Work equipment 17.3 15.9 2.1 % Other 24.7 19.7 8.8 % Equipment total 679.3 688.2 Technology and other 125.3 115.8 11.2 % Construction in progress 165.6 354.3 Total property 5,943.4 5,763.4 Accumulated depreciation and amortization 1,196.2 1,165.0 Net property $ 4,747.2 $ 4,598.4 (i) Other reflects structures, signals, roadway machines, communications and other road assets. Concession assets, net of accumulated amortization of $259.8million and $254.3million, totaled $1,774.2million and $1,775.2million for 2009 and 2008, respectively. The Company capitalized $2.8million and $4.4million of interest for the years ended December31, 2009 and 2008, respectively. Depreciation and amortization of property and equipment totaled $182.5million, $168.6million, and $159.0million for 2009, 2008, and 2007, respectively.

Other Balance Sheet Captions

Other Balance Sheet Captions
	12 Months Ended Dec. 31, 2009 USD / shares
Other Balance Sheet Captions [Abstract]
Other Balance Sheet Captions	Note5. Other Balance Sheet Captions Other Current Assets.Other current assets included the following items at December 31 (in millions): 2009 2008 Deferred employees statutory profit sharing asset $ 36.8 $ 12.2 Prepaid expenses 16.1 14.6 Refundable taxes 5.9 38.9 Deposits 0.3 20.6 Purchase accounting for the fair value of certain contracts 11.3 Other 3.9 1.2 Other current assets, net $ 63.0 $ 98.8 Accounts Payable and Accrued Liabilities.Accounts payable and accrued liabilities included the following items at December 31 (in millions): 2009 2008 Accounts payable $ 169.6 $ 255.8 Derailments, personal injury and other claim reserves 60.6 64.1 Accrued wages and vacation 39.1 42.3 Interest payable 23.6 25.5 Rents and leases 19.3 14.2 Income and other taxes 8.1 23.2 Other 22.4 30.3 Accounts payable and accrued liabilities $ 342.7 $ 455.4

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	Note6. Fair Value Measurements The Companys short-term financial instruments include cash and cash equivalents, accounts receivable, and accounts payable. The carrying value of the short-term financial instruments approximates the fair value due to their short-term nature. The fair value of the Companys debt is estimated using quoted market prices when available. When quoted market prices are not available, fair value is estimated based on current market interest rates for debt with similar maturities and credit quality. The fair value of the Companys debt was $2,031.1million and $1,911.5million at December31, 2009 and 2008, respectively. The financial statement carrying value was $1,980.0million and $2,086.1million at December31, 2009 and 2008, respectively. The Companys assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in Note2 Significant Accounting Policies. The following table presents the Companys assets and liabilities measured at fair value on a recurring basis as of December31 (in millions): Fair Value Measurements Net Assets (Liabilities) Level 1 Level 2 Level 3 at Fair Value 2009 Interest rate contracts $ $ (4.9 ) $ $ (4.9 ) Net asset (liabilities), at fair value $ $ (4.9 ) $ $ (4.9 ) Fair Value Measurements Net Assets (Liabilities) Level 1 Level 2 Level 3 at Fair Value 2008 Investments (i) $ $ $12.4 $ 12.4 Interest rate contracts (5.7 ) (5.7 ) Net asset (liabilities), at fair value $ $ (5.7 ) $12.4 $ 6.7 (i) Investments with Level1 and/or Level2 inputs are classified as a Level3 investment in their entirety if it has at least one significant Level3 input. The Company determines the fair values of its derivative financial instrument positions based upon pricing models using inputs observed from actively quoted markets. Pricing models take into consideration the contract terms as well as other inputs, including forward interest rate curves. As prescribed by the guidance, the Company recognizes the fair value of its derivative financial instruments as a Level2 valuation. The Company determined the fair value of its investment in a financial institution cash management fund based upon the value of the underlying investments. Underlying investments were valued using quoted market prices, if available. If quoted market prices were not available due to an inactive market, adjustments using unobservable inputs were required to determine the fair value. Because of these unobservable inputs, the Company recognized the fair value of its investment as a Level3 valuation. The following table presents additional information about this investm

Long-Term Debt

Long-Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-Term Debt [Abstract]
Long-Term Debt	Note7. Long-Term Debt Long-term debt at December 31 (in millions): 2009 2008 KCS Other debt obligations $ 0.6 $ 0.2 KCSR Revolving credit facility, variable interest rate, 1.510% at December31, 2009, due 2011 40.0 100.0 Term loans, variable interest rate, 1.959% at December31, 2009, due 2013 310.6 313.9 71/2%senior notes, due 2009 200.0 13.0%senior notes, due 2013 171.2 168.1 8.0%senior notes, due 2015 275.0 275.0 Capital lease obligations, due serially to 2017 11.0 12.1 Other debt obligations 11.8 11.7 Tex-Mex RRIF loan, 4.29%, due serially to 2030 45.3 46.7 KCSM Term loan, variable interest rate, due 2012 30.0 93/8%senior notes, due 2012 460.0 460.0 75/8%senior notes, due 2013 175.0 175.0 73/8%senior notes, due 2014 165.0 165.0 121/2%senior notes, due 2016 189.7 5.737% financing agreement 65.5 70.3 6.195% financing agreement 47.8 51.3 Capital lease obligations, due serially to 2012 5.0 6.8 Other debt obligations 6.5 Total 1,980.0 2,086.1 Less: Debt due within one year 68.1 637.4 Long-term debt $ 1,911.9 $ 1,448.7 KCSR Debt Revolving Credit Facility and Term Loans.On April28, 2006, KCS, KCSR and the other subsidiary guarantors named therein entered into an amended and restated credit agreement (the 2006 Credit Agreement), in an aggregate amount of $371.1million with The Bank of Nova Scotia and other lenders named in the 2006 Credit Agreement. The 2006 Credit Agreement initially consisted of a $125.0million revolving credit facility with a letter of credit sublimit of $25.0million and swing line advances of up to $15.0million, and a $246.1million term loan facility (the Term Loan B Facility). On May31, 2007, KCSR entered into Amendment No.1 to the 2006 Credit Agreement which provided for a new $75.0million term loan facility (the Term Loan C Facility) under the 2006 Credit Agreement. The revolving credit facility bears interest at either LIBOR, or an alternate base rate, plus a spread based on the Companys leverage ratio as defined in the 2006 Credit Agreement. The Term Loan B Facility bears interest at LIBOR plus 175basis points or the alternative base rate plus 75basis points. The Term Loan C Facility bears interest at LIBOR plus 150basis points or the alternative base rate plus 50basis points. The 2006 Credit Agreement contains covenants that restrict or prohibit certain actions, including, but not limited to, KCS ability to incur debt, create or suffer to exist liens, make prepayment of particular debt, pay dividends, make in

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	Note8. Income Taxes Current income tax expense represents the amounts expected to be reported on the Companys 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 basis of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. Tax Expense.Income tax expense (benefit) consists of the following components (in millions): 2009 2008 2007 Current: Federal $ (1.1 ) $ 0.9 $ State and local 1.3 (0.2 ) 0.8 Foreign 3.0 Total current 3.2 0.7 0.8 Deferred: Federal 35.4 40.8 33.2 State and local 2.1 7.9 2.4 Foreign (6.1 ) 15.1 30.7 Total deferred 31.4 63.8 66.3 Total income tax expense $ 34.6 $ 64.5 $ 67.1 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities follow at December 31 (in millions): 2009 2008 Liabilities: Depreciation $ 579.7 $ 545.6 Investments 74.0 71.0 Concession rights 154.6 152.5 Other, net 16.7 8.5 Gross deferred tax liabilities 825.0 777.6 Assets: Loss carryovers (276.5 ) (284.5 ) Book reserves not currently deductible for tax (124.6 ) (99.3 ) Vacation accrual (3.6 ) (3.7 ) Other, net (28.6 ) (19.8 ) Gross deferred tax assets before valuation allowance (433.3 ) (407.3 ) Valuation allowance on loss carryovers 23.7 22.9 Gross deferred tax assets (409.6 ) (384.4 ) Net deferred tax liability $ 415.4 $ 393.2 Tax Rates.Differences between the Companys effective income tax rates and the U.S.federal income tax statutory rates of 35% follow (in millions): 2009 2008 2007 Income tax expense using the statutory rate in effect $ 36.3 $ 87.0 $ 77.5 Tax effect of:

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity [Abstract]
Stockholders' Equity	Note9. Stockholders Equity Information regarding the Companys capital stock at December 31 follows: Shares Authorized Shares Issued 2009 and 2008 2009 2008 $25par, 4% noncumulative, preferred stock 840,000 649,736 649,736 $1par, preferred stock 2,000,000 $1par, seriesA, preferred stock 150,000 $1par, seriesB convertible, preferred stock 1,000,000 $1par, seriesC redeemable cumulative convertible perpetual preferred stock 400,000 $1par, seriesD cumulative convertible perpetual preferred stock 210,000 210,000 210,000 $.01par, common stock 400,000,000 110,583,068 106,252,860 Shares outstanding at December 31: 2009 2008 $25par, 4% noncumulative, preferred stock 242,170 242,170 $1par, seriesD cumulative convertible perpetual preferred stock 209,995 209,995 $.01par, common stock 96,213,346 91,463,762 Treasury Stock.Shares of common stock in Treasury and related activity follow: 2009 2008 2007 Balance at beginning of year 14,789,098 15,888,078 16,943,252 Shares issued for preferred stock dividend (378,667 ) Shares issued to fund stock option exercises (359,575 ) (1,065,724 ) (84,528 ) Employee stock purc hase plan shares issued (71,699 ) (91,326 ) (116,663 ) Nonvested shares issued (107,365 ) (225,873 ) (563,112 ) Nonvested shares forfeited 119,263 283,943 87,796 Balance at end of year 14,369,722 14,789,098 15,888,078 Redemption of SeriesC Redeemable Cumulative Convertible Perpetual Preferred Stock.On June12, 2008, the Company called for redemption all of the outstanding shares of its 4.25% SeriesC Redeemable Cumulative Convertible Perpetual Preferred Stock (the SeriesC Preferred Stock) with a redemption date of July15, 2008 (the RedemptionDate). The holders of the outstanding shares had the option to redeem at a redemption price of $500 per share or convert each share into 33.4728shares of KCS common stock. Each share converted also received an appropriate number of common stock or other preferred stock purchase rights under KCS 2005 Rights Agreement. All 400,000shares of SeriesC Preferred Stock were converted into 13,389,109shares of common stock. SeriesD Cumulative Convertible Perpetual Preferred Stock.On December9, 2005, KCS completed the sale and issuance of 210,000shares of its 5.125% SeriesD Convertible Preferred Stock, par value $1.00 per share (SeriesD Preferred Stock). Each share of SeriesD Preferred Stock is convert

Share-Based Compensation

Share-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Share-Based Compensation [Abstract]
Share-Based Compensation	Note10. Share-Based Compensation On October7, 2008, the Companys stockholders approved the Kansas City Southern 2008 Stock Option and Performance Award Plan (the 2008 Plan). The 2008 plan became effective on October14, 2008 and replaces the Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award Plan (the 1991 Plan). The 2008 Plan provides for the granting of up to 2.3million shares of the Companys common stock to eligible persons as defined in the 2008 Plan. Outstanding equity awards granted under the 1991 Plan and the 2008 Plan (the Plans) are to be governed by the terms and conditions of each individual plan and the related award agreements. Stock Option Plan.Options will be granted under the 2008 Plan at 100% of the closing market price of the Companys stock on the date of grant. Under the 1991 Plan, options were granted at 100% of the average market price of the Companys stock on the date of grant. Options generally have a 5year cliff vesting period and are exercisable over the 10year contractual term, except that options outstanding with limited rights (LRs) or limited stock appreciation rights (LSARs), become immediately exercisable upon certain defined circumstances constituting a change in control of the Company. The Plans include provisions for stock appreciation rights, LRs and LSARs. All outstanding options include LSARs, except for options granted to non-employee Directors prior to 1999. The grant date fair value, less estimated forfeitures, is recorded to expense on a straight-line basis over the vesting period. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average assumptions used were as follows: 2009 2008 2007 Expected dividend yield 0 % 0 % 0 % Expected volatility 42.86 % 32.28 % 34.17 % Risk-free interest rate 1.66 % 3.29 % 4.70 % Expected term (years) 7.50 7.50 7.50 Weighted-average grant date fair value of stock options granted $ 6.45 $ 18.33 $ 16.04 The Company has not paid dividends to common shareholders since January of 2000 and currently does not expect to pay dividends to common stockholders in the future. The expected volatility is based on the historical volatility of the Companys stock price over a term equal to the estimated life of the options. The risk-free interest rate is determined based on the U.S.Treasury rates approximating the expected life of the options granted, which represents the period of time the awards are expected to be outstanding and is based on the historical experience of similar awards. The following table summarizes combined activity under the Plans: Weighted- Weighted- Average Average Exercise Remaining Aggregate Number of Price Contractual Intrinsic

Profit Sharing and Other Postre

Profit Sharing and Other Postretirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Profit Sharing and Other Postretirement Benefits [Abstract]
Profit Sharing and Other Postretirement Benefits	Note11. Profit Sharing and Other Postretirement Benefits Health and Welfare.Certain U.S.employees that have met age and service requirements are eligible for medical benefits and life insurance coverage during retirement. The retiree medical plan is contributory and provides benefits to retirees, their covered dependents and beneficiaries. The plan provides for annual adjustments to retiree contributions, and also contains, depending on the coverage selected, certain deductibles, co-payments, co-insurance, and coordination with Medicare. Certain management employees also maintain their status under a collective bargaining agreement, which permits them access to post-retirement medical under the multi-employer plan described below. The life insurance plan is non-contributory and covers union retirees only. The Companys policy, in most cases, is to fund benefits payable under these plans as the obligations become due. However, certain plan assets (money market funds held in a life insurance company) exist with respect to life insurance benefits. KCSM Post-Employment Benefits. Mexican law requires that the Company provide certain post-employment benefits to its Mexican union and non-union employees. These plans provide statutorily calculated benefits which are payable upon retirement, death, disability, voluntary or involuntary termination to employees who meet applicable service requirements. In addition to these statutorily required post-employment benefits, the Company and the union have been engaged in negotiations regarding an incremental benefit that would be paid to the Companys union employees upon retirement. The current calculated liability related to this incremental benefit is based on various factors including retirement eligibility based on a combination of age and years of credited service and the employees salary at the time of retirement. As of the date of this filing, the Company was still negotiating with the union regarding this benefit and details of this benefit continue to be discussed. The Company uses December 31 as the measurement date for its retirement benefit obligations. Net Periodic Benefit Cost, Plan Obligations and Funded Status Components of the net cost (benefit) for these plans were as follows for the years ended December 31 (inmillions): Health and Welfare Mexico Post-Employment Benefit 2009 2008 2007 2009 2008 2007 Service cost $ 0.1 $ 0.1 $ 0.1 $ 2.5 $ 1.9 $ 2.0 Interest cost 0.3 0.4 0.4 1.4 1.4 1.2 Expected return on plan assets Actuarial (gain) loss(i) (0.2 ) 0.2 0.1 (3.6 ) 1.0 (1.0 ) Foreign currency (gain) loss 0.7 (3.8 ) Prior service credit(ii) (0.3 ) (0.3 ) (0.3 )

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note12. Commitments and Contingencies Concession Duty.Under the Concession, the Mexican government has the right to receive a payment from the Company equivalent to 0.5% of the gross revenue during the first 15years of the Concession period and 1.25% of the gross revenue during the remaining years of the Concession period. For the year ended December31, 2009, the concession duty expense, which is recorded within operating expenses, amounted to $3.2million, compared to $4.3million for the same periods in 2008 and 2007. Litigation.The Company is a party to various legal proceedings and administrative actions, all of which, except as set forth below, are of an ordinary, routine nature and incidental to its operations. Included in these proceedings are various tort claims brought by current and former employees for job-related injuries and by third parties for injuries related to railroad operations. KCS aggressively defends these matters and has established liability reserves, which management believes are adequate to cover expected costs. Although it is not possible to predict the outcome of any legal proceeding, in the opinion of management, other than those proceedings described in detail below, such proceedings and actions should not, individually, or in the aggregate, have a material adverse effect on the Companys financial condition and liquidity. However, a material adverse outcome in one or more of these proceedings could have a material adverse impact on the results of operations in a particular quarter or fiscal year. Environmental Liabilities.The Companys U.S.operations are subject to extensive federal, state and local environmental laws and regulations. The major U.S.environmental laws to which the Company is subject include, among others, the Federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, also known as the Superfund law), the Toxic Substances Control Act, the Federal Water Pollution Control Act, and the Hazardous Materials Transportation Act. CERCLA can impose joint and several liabilities for cleanup and investigation costs, without regard to fault or legality of the original conduct, on current and predecessor owners and operators of a site, as well as those who generate, or arrange for the disposal of, hazardous substances. The Company does not believe that compliance with the requirements imposed by the environmental legislation will impair its competitive capability or result in any material additional capital expenditures, operating or maintenance costs. The Company is, however, subject to environmental remediation costs as described below. The Companys 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 and impose economic sanctions against companies that violate environmental laws, and temporarily or even permanently close non-c

Settlement Agreement with TMM

Settlement Agreement with TMM
	12 Months Ended Dec. 31, 2009 USD / shares
Settlement Agreement [Abstract]
Settlement Agreement	Note13. Settlement Agreement with TMM In furtherance of the Companys strategy for expansion into Mexico, on December15, 2004, the Company entered into an Amended and Restated Acquisition Agreement (the Acquisition Agreement) with Grupo TMM, S.A.B. (TMM, formerly Grupo TMM, S.A.), and other parties under which KCS acquired full control of KCSM through the purchase of shares of common stock of Grupo KCSM. On September24, 2007, KCS entered into a Settlement Agreement (the Agreement) with TMM, TMM Logistics, S.A. de C.V., a subsidiary of TMM, and VEX Asesores Corporativos, S.A. de C.V. (formerly Jos F. Serrano International Business, S.A. de C.V.) (the Consulting Firm), resolving certain claims and disputes over liabilities established as part of KCS acquisition of KCSM (successor by merger to Grupo KCSM). Pursuant to the terms of the Agreement, KCS agreed to pay TMM $54.1million in cash to retire two notes totaling $86.6million which were negotiated in 2005 at the closing of KCS acquisition of KCSM to cover certain post-closing contingencies and tax liabilities. The parties also agreed to terminate the consulting agreement between KCS and the Consulting Firm and make the final annual payment of $3.0million, payable on settlement. The settlement amount of $57.1million was paid by KCS to TMM on October1, 2007.

Derivative Instruments

Derivative Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments [Abstract]
Derivative Instruments	Note14. Derivative Instruments The Company does not engage in the trading of derivative financial instruments except where the Companys objective is to manage the variability of forecasted interest payments attributable to changes in interest rates or fuel price risk. In general, the Company enters into derivative transactions in limited situations based on managements assessment of current market conditions and perceived risks. However, management intends to respond to evolving business and market conditions and in doing so, may enter into such transactions more frequently 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 the counterparty credit risk by entering into contracts with large financial institutions with which the Company has an established banking relationship. As of December31, 2009, the Company did not expect any losses as a result of default of its counterparties. Interest Rate Swaps.During 2008, the Company entered into five forward starting interest rate swaps, which have been designated as cash flow hedges. The forward starting interest rate swaps effectively convert interest payments from variable rates to fixed rates. The swaps are highly effective and as a result there will be deminimus earnings impact associated with ineffectiveness of these hedges. The hedging instruments have an aggregate notional amount of $250.0million at an average fixed rate of 2.71%, with forward starting settlements indexed to the three-month LIBOR occurring every quarter, expiring September 2010 through March 2011. Fuel Derivative Transactions.In January 2009, the Company entered into fuel swap agreements, which had been designated as cash flow hedges. The effective portion of the gain or loss on the derivative instruments was reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of the effectiveness were recognized in current earnings. During the second quarter of 2009, it became probable that the hedged transactions would not occur as forecasted. Therefore, the hedging relationship was dedesignated on May31, 2009 and hedge accounting was discontinued. Changes in the fair value of the derivative instrument after dedesignation are recorded in earnings. As of December31, 2009, the Company has no outstanding fuel swap agreements. The following table presents the fair value of derivative instruments included in the consolidated balance sheet as of December31, 2009 (in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other current assets $ Accounts payable accrued liabilities $ 3.2 Interest r

Quarterly Financial Data

Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Financial Data (Unaudited) [Abstract]
Quarterly Financial Data (Unaudited)	Note15. Quarterly Financial Data (Unaudited) Fourth Third Second First In millions, except per share amounts 2009 Revenues $ 406.8 $ 386.1 $ 341.3 $ 346.0 Operating income 91.9 84.4 43.4 48.5 Net income (loss) 34.9 29.0 7.3 (2.2 ) Net income (loss) attributable to Kansas City Southern and subsidiaries 34.7 28.6 6.8 (2.1 ) Per share data: Basic earnings (loss) per common share $ 0.33 $ 0.27 $ 0.07 $ (0.08 ) Diluted earnings (loss) per common share 0.33 0.27 0.07 (0.08 ) Dividends per share: $25par preferred stock $ 0.25 $ 0.25 $ 0.25 $ 0.25 $1par seriesD preferred stock 12.81 12.81 25.62 Stock price ranges: $25par preferred: High $ 22.90 $ 21.00 $ 22.00 $ 21.00 Low 19.55 17.50 17.68 14.27 Common: High $ 34.57 $ 29.19 $ 17.98 $ 23.54 Low 22.57 14.75 12.25 12.47 2008 Revenues $ 423.8 $ 491.5 $ 486.2 $ 450.6 Operating income 91.2 111.0 104.6 83.4 Net income 39.2 51.7 55.5 37.8 Net income attributable to Kansas City Southern and subsidiaries 39.2 51.6 55.4 37.7 Per share data: Basic earnings per common share $ 0.40 $ 0.55 $ 0.64 $ 0.43 Diluted earnings per common share 0.40 0.52 0.56 0.39 Dividends per share: $25par preferred stock $ 0.25 $ 0.25 $ 0.25 $ 0.25 $1par seriesC preferred stock 5.31 5.31 $1par seriesD preferred stock 12.81 12.81 12.81 12.81 Stock price ranges: $25par preferred: High $ 22.20 $ 24.50 $ 23.60 $ 26.00 Low 17.55 20.00 22.00 20.95 Common: High $ 44.38 $ 55.90 $ 50.66 $ 41.55 Low 15.71 40.05 39.01 29.00

Condensed Consolidating Financi

Condensed Consolidating Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Condensed Consolidating Financial Information [Abstract]
Condensed Consolidating Financial Information	Note16. Condensed Consolidating Financial Information As discussed in Note7, at December31, 2009, KCSR has outstanding $275.0million of 8.0%Senior Notes due 2015 and $190.0million of 13.0%Senior Notes due 2013, which are unsecured obligations of KCSR, which are also jointly and severally and fully and unconditionally guaranteed on an unsecured senior basis by KCS and certain wholly-owned domestic subsidiaries. As a result, the following accompanying condensed consolidating financial information (in millions) has been prepared and presented pursuant to SEC RegulationS-X Rule3-10 Financial statements of guarantors and issuers of guaranteed securities registered or being registered. The 8.0%Senior Notes were registered by means of an amendment to KCS shelf registration statement filed and automatically effective as of May23, 2008. The 13.0%Senior Notes were registered under KCS shelf registration statement filed and automatically effective as of November21, 2008. Condensed Consolidating Statements of Income 2009 Guarantor Non-Guarantor Consolidating Consolidated Parent KCSR Subsidiaries Subsidiaries Adjustments KCS Revenues $ $ 753.4 $ 17.8 $ 739.8 $ (30.8 ) $ 1,480.2 Operating expenses 4.1 602.5 18.8 619.9 (33.3 ) 1,212.0 Operating income (loss) (4.1 ) 150.9 (1.0 ) 119.9 2.5 268.2 Equity in net earnings of unconsolidated affiliates 72.3 3.2 17.8 (85.6 ) 7.7 Interest income (expense) (0.2 ) (64.8 ) 1.6 (113.5 ) 3.2 (173.7 ) Debt retirement costs (5.3 ) (0.6 ) (5.9 ) Foreign exchange gain 2.1 2.1 Other income, net 0.7 6.6 3.6 (5.7 ) 5.2 Income before income taxes and noncontrolling interest 68.7 90.6 0.6 29.3 (85.6 ) 103.6 Income tax expense 0.7 31.3 0.4 2.2 34.6 Net income 68.0 59.3 0.2 27.1 (85.6 ) 69.0 Noncontrolling interest 1.0 1.0 Net income attributable to Kansas City Southern and subsidiaries $ 68.0 $ 59.3 $ 0.2 $ 26.1 $ (85.6 ) $ 68.0

Geographic Information

Geographic Information
	12 Months Ended Dec. 31, 2009 USD / shares
Geographic Information [Abstract]
Geographic Information	Note17. 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 ClassI railroads. Financial information reported at this level, such as revenues, operating income and cash flows from operations, is used by corporate management, including the Companys chief operating decision-maker, in evaluating overall financial and operational performance, market strategies, as well as the decisions to allocate capital resources. The Companys strategic initiatives, which drive its operational direction, are developed and managed at the Companys headquarters and targets are communicated to its various regional activity centers. Corporate management is responsible for, among others, KCS marketing strategy, the oversight of large cross-border customer accounts, overall planning and control of infrastructure and rolling stock, the allocation of capital resources based upon growth and capacity constraints over the coordinated network, and other functions such as financial planning, accounting, and treasury. The role of each region is to manage the operational activities and monitor and control costs over the coordinated rail network. Such cost control is required to ensure that pre-established efficiency standards set at the corporate level are attained. The regional activity centers are responsible for executing the overall corporate strategy and operating plan established by corporate management as a coordinated system. The following tables (in millions) provide information by geographic area in accordance with the accounting guidance on segment reporting: Years Ended December31 2009 2008 2007 Revenues U.S. $ 864.2 $ 1,033.6 $ 929.6 Mexico 616.0 818.5 813.2 Total revenues $ 1,480.2 $ 1,852.1 $ 1,742.8 Years Ended December31 2009 2008 Property and equipment (including concession assets), net U.S. $ 2,501.2 $ 2,342.1 Mexico 2,246.0 2,256.3 Total property and equipment (including concession assets), net $ 4,747.2 $ 4,598.4

Subsequent Event

Subsequent Event
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Event [Abstract]
Subsequent Event	Note18. Subsequent Event Fuel Derivative Transactions.In anticipation of future increases in diesel fuel prices, the Company entered into fuel swap agreements in the first quarter of 2010 to hedge 22.6million gallons of diesel fuel purchases through the end of 2010 at an average swap price per gallon of $2.22. The Company has evaluated subsequent events through February11, 2010, the date that these financial statements were issued and determined that no additional subsequent events occurred that would require additional recognition or disclosure.