☒ | |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 87-3883291 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
427 West 12th Street Kansas City, Missouri | 64105 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||
Preferred Stock, Par Value $25 Per Share, 4%, Noncumulative | * | * | ||
Common Stock, $.01 Per Share Par Value | * | * |
* | See Explanatory Note |
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Auditor Name: PricewaterhouseCoopers LLP | ||
Auditor Location: Kansas City, Missouri | ||
2017 | 2016 | ||||||||||||||||
Owned | Leased | Total | Owned | Leased | Total | ||||||||||||
Freight Cars: | |||||||||||||||||
Box cars | 3,205 | 1,212 | 4,417 | 3,212 | 2,105 | 5,317 | |||||||||||
Hoppers (covered and open top) | 4,735 | 2,107 | 6,842 | 4,333 | 2,030 | 6,363 | |||||||||||
Gondolas | 2,619 | 1,267 | 3,886 | 2,993 | 1,295 | 4,288 | |||||||||||
Automotive | 2,731 | 1,142 | 3,873 | 2,483 | 768 | 3,251 | |||||||||||
Flat cars (intermodal and other) | 850 | 98 | 948 | 851 | 97 | 948 | |||||||||||
Tank cars | 4 | 568 | 572 | 4 | 645 | 649 | |||||||||||
Total | 14,144 | 6,394 | 20,538 | 13,876 | 6,940 | 20,816 | |||||||||||
Locomotives: | |||||||||||||||||
Freight | 736 | 146 | 882 | 736 | 121 | 857 | |||||||||||
Switching | 187 | — | 187 | 187 | — | 187 | |||||||||||
Total | 923 | 146 | 1,069 | 923 | 121 | 1,044 |
Average Age (in Years) of Owned and Leased Locomotives: | 2017 | 2016 | |||
Freight | 16.2 | 15.0 | |||
Switching | 42.0 | 41.0 | |||
All locomotives | 20.2 | 19.7 |
Fourth | Third | Second | First | ||||||||||||
2017 | |||||||||||||||
Dividends per share: | |||||||||||||||
Common stock | $ | 0.36 | $ | 0.36 | $ | 0.33 | $ | 0.33 | |||||||
$25 par preferred stock | 0.25 | 0.25 | 0.25 | 0.25 | |||||||||||
Stock price ranges: | |||||||||||||||
$25 par preferred: | |||||||||||||||
— High | $ | 28.91 | $ | 29.14 | $ | 29.50 | $ | 29.35 | |||||||
— Low | 26.96 | 27.35 | 25.45 | 26.75 | |||||||||||
Common: | |||||||||||||||
— High | $ | 114.85 | $ | 109.13 | $ | 105.15 | $ | 90.82 | |||||||
— Low | 99.70 | 100.17 | 84.92 | 79.05 | |||||||||||
2016 | |||||||||||||||
Dividends per share: | |||||||||||||||
Common stock | $ | 0.33 | $ | 0.33 | $ | 0.33 | $ | 0.33 | |||||||
$25 par preferred stock | 0.25 | 0.25 | 0.25 | 0.25 | |||||||||||
Stock price ranges: | |||||||||||||||
$25 par preferred: | |||||||||||||||
— High | $ | 31.10 | $ | 29.54 | $ | 29.00 | $ | 27.30 | |||||||
— Low | 25.52 | 26.40 | 25.70 | 25.31 | |||||||||||
Common: | |||||||||||||||
— High | $ | 96.83 | $ | 100.69 | $ | 98.99 | $ | 88.84 | |||||||
— Low | 79.30 | 86.52 | 83.00 | 62.20 |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||
Kansas City Southern | $ | 100.00 | $ | 149.50 | $ | 148.83 | $ | 92.38 | $ | 106.56 | $ | 133.99 | ||||||
S&P 500 (1) | 100.00 | 132.39 | 150.51 | 152.59 | 170.84 | 208.14 | ||||||||||||
Dow Jones U.S. Industrial Transportation (2) | 100.00 | 140.91 | 171.45 | 133.47 | 172.86 | 221.67 |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may yet be purchased under the Plans or Programs | ||||||||||
October 1-31, 2017 | 254,792 | (i) | $ | 101.10 | (i) | 254,792 | (i) | $ | 589,239,305 | |||||
November 1-30, 2017 | 299,724 | $ | 105.46 | 299,724 | $ | 557,631,058 | ||||||||
December 1-31, 2017 | 114,676 | $ | 111.86 | 114,676 | $ | 544,803,013 | ||||||||
Total | 669,192 | 669,192 |
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Earnings From Continuing Operations | |||||||||||||||||||
Revenues | $ | 2,582.9 | $ | 2,334.2 | $ | 2,418.8 | $ | 2,577.1 | $ | 2,369.3 | |||||||||
Operating expenses (i) (ii) | 1,661.3 | 1,515.7 | 1,615.0 | 1,768.0 | 1,630.7 | ||||||||||||||
Operating income | $ | 921.6 | $ | 818.5 | $ | 803.8 | $ | 809.1 | $ | 738.6 | |||||||||
Net income (iii) (iv) | $ | 963.9 | $ | 479.9 | $ | 485.3 | $ | 504.3 | $ | 353.3 | |||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 9.18 | $ | 4.44 | $ | 4.41 | $ | 4.56 | $ | 3.19 | |||||||||
Diluted | 9.16 | 4.43 | 4.40 | 4.55 | 3.18 | ||||||||||||||
Financial Position | |||||||||||||||||||
Total assets | $ | 9,198.7 | $ | 8,817.5 | $ | 8,341.0 | $ | 7,976.4 | $ | 7,283.7 | |||||||||
Total long-term debt obligations, including current portion and short-term borrowings | 2,619.4 | 2,478.2 | 2,401.1 | 2,301.4 | 2,168.8 | ||||||||||||||
Total stockholders’ equity | 4,548.9 | 4,089.9 | 3,914.3 | 3,755.5 | 3,370.6 | ||||||||||||||
Total equity | 4,865.4 | 4,404.5 | 4,224.7 | 4,064.1 | 3,676.6 | ||||||||||||||
Other Data Per Common Share | |||||||||||||||||||
Cash dividends declared per common share | $ | 1.38 | $ | 1.32 | $ | 1.32 | $ | 1.12 | $ | 0.86 |
Item 10. | Directors, Executive Officers and Corporate Governance |
Lydia I. Beebe Principal, LIBB Advisors, LLC Age Director Since Committees Experience Qualifications co-chair of the Stanford Institutional Investors Forum at Stanford Law School. She was the Chief Governance Officer for Chevron Corp. from 1995 to 2015 and served in various other legal roles since 1977. During this time, she gained valuable skills relating to executive leadership at a large publicly-traded company, including corporate governance matters that are important to our stockholders. She has extensive experience in a wide array of legal challenges that face a public company and its board of directors. Ms. Beebe also has expertise with boardroom issues as a director of other public companies. Through LIBB Advisors, she also routinely advises companies on corporate strategy and working with all stakeholders. In addition, she serves as an advisory board member of the Rock Center for Corporate Governance at Stanford University. Ms. Beebe also served as chairman of the board of the Northern California Chapter of the National Association of Corporate Directors.Other Current Public Directorships Past Directorships |
2017 | 2016 | Change | |||||||||
Revenues | $ | 2,582.9 | $ | 2,334.2 | $ | 248.7 | |||||
Operating expenses | 1,661.3 | 1,515.7 | 145.6 | ||||||||
Operating income | 921.6 | 818.5 | 103.1 | ||||||||
Equity in net earnings of affiliates | 11.5 | 14.6 | (3.1 | ) | |||||||
Interest expense | (100.2 | ) | (97.7 | ) | (2.5 | ) | |||||
Foreign exchange gain (loss) | 41.7 | (72.0 | ) | 113.7 | |||||||
Other expense, net | (0.3 | ) | (0.7 | ) | 0.4 | ||||||
Income before income taxes | 874.3 | 662.7 | 211.6 | ||||||||
Income tax expense (benefit) | (89.6 | ) | 182.8 | (272.4 | ) | ||||||
Net income | 963.9 | 479.9 | 484.0 | ||||||||
Less: Net income attributable to noncontrolling interest | 1.9 | 1.8 | 0.1 | ||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ | 962.0 | $ | 478.1 | $ | 483.9 |
Revenues | Carloads and Units | Revenue per Carload/Unit | ||||||||||||||||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||||||||||||
Chemical and petroleum | $ | 539.9 | $ | 475.4 | 14 | % | 273.5 | 258.5 | 6 | % | $ | 1,974 | $ | 1,839 | 7 | % | ||||||||||||||
Industrial and consumer products | 588.3 | 554.0 | 6 | % | 329.9 | 317.0 | 4 | % | 1,783 | 1,748 | 2 | % | ||||||||||||||||||
Agriculture and minerals | 477.4 | 461.0 | 4 | % | 244.3 | 251.4 | (3 | %) | 1,954 | 1,834 | 7 | % | ||||||||||||||||||
Energy | 283.8 | 202.7 | 40 | % | 291.7 | 253.9 | 15 | % | 973 | 798 | 22 | % | ||||||||||||||||||
Intermodal | 363.8 | 357.6 | 2 | % | 975.1 | 952.8 | 2 | % | 373 | 375 | (1 | %) | ||||||||||||||||||
Automotive | 230.8 | 189.9 | 22 | % | 155.5 | 133.3 | 17 | % | 1,484 | 1,425 | 4 | % | ||||||||||||||||||
Carload revenues, carloads and units | 2,484.0 | 2,240.6 | 11 | % | 2,270.0 | 2,166.9 | 5 | % | $ | 1,094 | $ | 1,034 | 6 | % | ||||||||||||||||
Other revenue | 98.9 | 93.6 | 6 | % | ||||||||||||||||||||||||||
Total revenues (i) | $ | 2,582.9 | $ | 2,334.2 | 11 | % | ||||||||||||||||||||||||
(i) Included in revenues: | ||||||||||||||||||||||||||||||
Fuel surcharge | $ | 169.5 | $ | 103.8 |
Lu M. Córdova Strategic Planning Projects, Governor’s Office, State of Colorado Age Director Since Committees Experience non-profit organization, from June 2018 to present; President of Techstars Foundation, an American seed accelerator, from December 2017 to June 2018; Chief Executive Officer then Chair of Corlund Industries, L.L.C., an investment holding company, since 2005; General Manager of AlmacenStorage-US, LLC, a Mexican REIT, from 2007 to 2019Qualifications start-up phase through high growth into the Past Directorships | ||
Robert J. Druten (Chairman of the Board) Retired Executive Vice President and Chief Financial Officer of Hallmark Cards, Inc. Age Director Since Committees Experience Qualifications Other Current Public Directorships Past Directorships |
Antonio O. Garza, Jr. Counsel, White & Case, LLP Age Director Since Committees Experience Qualifications Other Current Public Directorships Past Directorships | ||
Garza-Santos Chairman and Chief Executive Officer of Maquinaria Diesel SA de CV (“MADISA”) Age Director Since Committees Experience Qualifications Mr. Garza-Santos is a business and community leader in Monterrey, N.L. Mexico. As Chairman and Chief Executive Officer of MADISA,Mr. Garza-Santos has experience in all phases of leading a company.Mr. Garza-Santos also sits on the board of directors of Promotora Ambiental, S.A.B. de C.V., a publicly-traded waste management services company based out of Monterrey, Mexico.Mr. Garza-Santos is a recognized leader in Monterrey, which provides the Company with additional insight and leadership on the business and political environment both regionally in Monterrey as well as nationally across Mexico.Other Current Public Directorships |
Janet H. Kennedy Vice President, North America Regions, Google Cloud at Google Age Director Since Committees Experience Qualifications | director. |
Mitchell J. Krebs President and Chief Executive Officer of Coeur Mining, Inc. Age Director Since Committees: Audit; Finance & Strategic Investment Experience Qualifications Other Current Public Directorships | ||
Henry J. Maier Retired President and Chief Executive Officer, FedEx Ground, a package shipping company, which is a subsidiary of FedEx Corp. Age Director Since Committees Experience Qualifications Other Current Public Directorships |
Change | ||||||||||||||
2017 | 2016 | Dollars | Percent | |||||||||||
Compensation and benefits | $ | 493.8 | $ | 462.4 | $ | 31.4 | 7 | % | ||||||
Purchased services | 193.7 | 208.5 | (14.8 | ) | (7 | %) | ||||||||
Fuel | 316.1 | 253.8 | 62.3 | 25 | % | |||||||||
Mexican fuel excise tax credit | (44.1 | ) | (62.8 | ) | 18.7 | (30 | %) | |||||||
Equipment costs | 129.2 | 120.0 | 9.2 | 8 | % | |||||||||
Depreciation and amortization | 320.9 | 305.0 | 15.9 | 5 | % | |||||||||
Materials and other | 251.7 | 228.8 | 22.9 | 10 | % | |||||||||
Total operating expenses | $ | 1,661.3 | $ | 1,515.7 | $ | 145.6 | 10 | % |
2016 | 2015 | Change | |||||||||
Revenues | $ | 2,334.2 | $ | 2,418.8 | $ | (84.6 | ) | ||||
Operating expenses | 1,515.7 | 1,615.0 | (99.3 | ) | |||||||
Operating income | 818.5 | 803.8 | 14.7 | ||||||||
Equity in net earnings of affiliates | 14.6 | 18.3 | (3.7 | ) | |||||||
Interest expense | (97.7 | ) | (81.9 | ) | (15.8 | ) | |||||
Debt retirement and exchange costs | — | (7.6 | ) | 7.6 | |||||||
Foreign exchange loss | (72.0 | ) | (56.6 | ) | (15.4 | ) | |||||
Other expense, net | (0.7 | ) | (3.4 | ) | 2.7 | ||||||
Income before income taxes | 662.7 | 672.6 | (9.9 | ) | |||||||
Income tax expense | 182.8 | 187.3 | (4.5 | ) | |||||||
Net income | 479.9 | 485.3 | (5.4 | ) | |||||||
Less: Net income attributable to noncontrolling interest | 1.8 | 1.8 | — | ||||||||
Net income attributable to Kansas City Southern and subsidiaries | $ | 478.1 | $ | 483.5 | $ | (5.4 | ) |
Revenues | Carloads and Units | Revenue per Carload/Unit | ||||||||||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||||||||
Chemical and petroleum | $ | 475.4 | $ | 474.2 | — | 258.5 | 259.7 | — | $ | 1,839 | $ | 1,826 | 1 | % | ||||||||||||||||
Industrial and consumer products | 554.0 | 570.4 | (3 | %) | 317.0 | 320.5 | (1 | %) | 1,748 | 1,780 | (2 | %) | ||||||||||||||||||
Agriculture and minerals | 461.0 | 429.3 | 7 | % | 251.4 | 238.8 | 5 | % | 1,834 | 1,798 | 2 | % | ||||||||||||||||||
Energy | 202.7 | 252.3 | (20 | %) | 253.9 | 280.8 | (10 | %) | 798 | 899 | (11 | %) | ||||||||||||||||||
Intermodal | 357.6 | 381.5 | (6 | %) | 952.8 | 990.3 | (4 | %) | 375 | 385 | (3 | %) | ||||||||||||||||||
Automotive | 189.9 | 218.7 | (13 | %) | 133.3 | 126.5 | 5 | % | 1,425 | 1,729 | (18 | %) | ||||||||||||||||||
Carload revenues, carloads and units | 2,240.6 | 2,326.4 | (4 | %) | 2,166.9 | 2,216.6 | (2 | %) | $ | 1,034 | $ | 1,050 | (2 | %) | ||||||||||||||||
Other revenue | 93.6 | 92.4 | 1 | % | ||||||||||||||||||||||||||
Total revenues (i) | $ | 2,334.2 | $ | 2,418.8 | (3 | %) | ||||||||||||||||||||||||
(i) Included in revenues: | ||||||||||||||||||||||||||||||
Fuel surcharge | $ | 103.8 | $ | 230.1 |
Thomas A. McDonnell Retired President and non-profit foundationAge Director Since Committees Experience Qualifications Other Current Public Directorships |
Past Directorships | |||
Patrick J. Ottensmeyer President and Age Director Since Committees: Executive Experience Qualifications |
Change | ||||||||||||||
2016 | 2015 | Dollars | Percent | |||||||||||
Compensation and benefits | $ | 462.4 | $ | 442.2 | $ | 20.2 | 5 | % | ||||||
Purchased services | 208.5 | 223.0 | (14.5 | ) | (7 | %) | ||||||||
Fuel | 253.8 | 306.9 | (53.1 | ) | (17 | %) | ||||||||
Mexican fuel excise tax credit | (62.8 | ) | — | (62.8 | ) | 100 | % | |||||||
Equipment costs | 120.0 | 119.4 | 0.6 | 1 | % | |||||||||
Depreciation and amortization | 305.0 | 284.6 | 20.4 | 7 | % | |||||||||
Materials and other | 228.8 | 229.3 | (0.5 | ) | — | |||||||||
Lease termination costs | — | 9.6 | (9.6 | ) | (100 | %) | ||||||||
Total operating expenses | $ | 1,515.7 | $ | 1,615.0 | $ | (99.3 | ) | (6 | %) |
2017 | 2016 | 2015 | |||||||||
Cash flows provided by (used for): | |||||||||||
Operating activities | $ | 1,028.4 | $ | 919.0 | $ | 909.2 | |||||
Investing activities | (681.1 | ) | (628.2 | ) | (873.0 | ) | |||||
Financing activities | (383.8 | ) | (256.8 | ) | (247.6 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (36.5 | ) | 34.0 | (211.4 | ) | ||||||
Cash and cash equivalents beginning of year | 170.6 | 136.6 | 348.0 | ||||||||
Cash and cash equivalents end of year | $ | 134.1 | $ | 170.6 | $ | 136.6 |
Payments Due by Period | |||||||||||||||||||
Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More than 5 years | |||||||||||||||
Long-term debt and short-term borrowings (including interest and capital lease obligations) (i) | $ | 4,083.4 | $ | 474.5 | $ | 491.1 | $ | 182.5 | $ | 2,935.3 | |||||||||
Operating leases | 281.7 | 60.9 | 93.9 | 49.7 | 77.2 | ||||||||||||||
Deemed mandatory repatriation tax (ii) | 44.9 | 3.6 | 7.2 | 7.2 | 26.9 | ||||||||||||||
Capital expenditure obligations (iii) | 400.3 | 149.8 | 250.5 | — | — | ||||||||||||||
Other contractual obligations (iv) | 547.5 | 105.3 | 143.4 | 89.6 | 209.2 | ||||||||||||||
Total | $ | 5,357.8 | $ | 794.1 | $ | 986.1 | $ | 329.0 | $ | 3,248.6 |
2017 | 2016 | 2015 | ||||||||||
Roadway capital program | $ | 269.3 | $ | 271.8 | $ | 294.0 | ||||||
Locomotives and freight cars | 75.7 | 112.6 | 201.2 | |||||||||
Capacity | 111.4 | 109.6 | 86.6 | |||||||||
Positive train control | 51.7 | 49.6 | 34.0 | |||||||||
Information technology | 33.7 | 29.3 | 21.9 | |||||||||
Other | 17.7 | 11.1 | 11.0 | |||||||||
Total capital expenditures (accrual basis) | 559.5 | 584.0 | 648.7 | |||||||||
Change in capital accruals | 25.9 | (20.4 | ) | 39.3 | ||||||||
Total cash capital expenditures | $ | 585.4 | $ | 563.6 | $ | 688.0 | ||||||
Purchase or replacement of equipment under operating leases (accrual basis) | $ | 42.6 | $ | 26.6 | $ | 144.2 | ||||||
Change in capital accruals | — | — | — | |||||||||
Total cash purchase or replacement of equipment under operating leases | $ | 42.6 | $ | 26.6 | $ | 144.2 |
2017 | 2016 | 2015 | ||||||
Track miles of rail installed | 174 | 146 | 177 | |||||
Cross ties installed (thousands) | 699 | 711 | 829 |
2017 | 2016 | 2015 | |||||||||
(In millions, except share and per share amounts) | |||||||||||
Revenues | $ | 2,582.9 | $ | 2,334.2 | $ | 2,418.8 | |||||
Operating expenses: | |||||||||||
Compensation and benefits | 493.8 | 462.4 | 442.2 | ||||||||
Purchased services | 193.7 | 208.5 | 223.0 | ||||||||
Fuel | 316.1 | 253.8 | 306.9 | ||||||||
Mexican fuel excise tax credit | (44.1 | ) | (62.8 | ) | — | ||||||
Equipment costs | 129.2 | 120.0 | 119.4 | ||||||||
Depreciation and amortization | 320.9 | 305.0 | 284.6 | ||||||||
Materials and other | 251.7 | 228.8 | 229.3 | ||||||||
Lease termination costs | — | — | 9.6 | ||||||||
Total operating expenses | 1,661.3 | 1,515.7 | 1,615.0 | ||||||||
Operating income | 921.6 | 818.5 | 803.8 | ||||||||
Equity in net earnings of affiliates | 11.5 | 14.6 | 18.3 | ||||||||
Interest expense | (100.2 | ) | (97.7 | ) | (81.9 | ) | |||||
Debt retirement and exchange costs | — | — | (7.6 | ) | |||||||
Foreign exchange gain (loss) | 41.7 | (72.0 | ) | (56.6 | ) | ||||||
Other expense, net | (0.3 | ) | (0.7 | ) | (3.4 | ) | |||||
Income before income taxes | 874.3 | 662.7 | 672.6 | ||||||||
Income tax expense (benefit) | (89.6 | ) | 182.8 | 187.3 | |||||||
Net income | 963.9 | 479.9 | 485.3 | ||||||||
Less: Net income attributable to noncontrolling interest | 1.9 | 1.8 | 1.8 | ||||||||
Net income attributable to Kansas City Southern and subsidiaries | 962.0 | 478.1 | 483.5 | ||||||||
Preferred stock dividends | 0.2 | 0.2 | 0.2 | ||||||||
Net income available to common stockholders | $ | 961.8 | $ | 477.9 | $ | 483.3 | |||||
Earnings per share: | |||||||||||
Basic earnings per share | $ | 9.18 | $ | 4.44 | $ | 4.41 | |||||
Diluted earnings per share | $ | 9.16 | $ | 4.43 | $ | 4.40 | |||||
Average shares outstanding (in thousands): | |||||||||||
Basic | 104,728 | 107,560 | 109,709 | ||||||||
Potentially dilutive common shares | 312 | 201 | 206 | ||||||||
Diluted | 105,040 | 107,761 | 109,915 |
2017 | 2016 | 2015 | |||||||||
(In millions) | |||||||||||
Net income | $ | 963.9 | $ | 479.9 | $ | 485.3 | |||||
Other comprehensive loss: | |||||||||||
Unrealized loss on interest rate derivative instruments during the period, net of tax of $(2.2) million | (3.4 | ) | — | — | |||||||
Amortization of prior service credit, net of tax of less than $(0.1) million | — | — | (0.1 | ) | |||||||
Foreign currency translation adjustments, net of tax of $3.8 million, $(1.0) million and $(0.8) million | (3.3 | ) | (1.5 | ) | (1.4 | ) | |||||
Other comprehensive loss | (6.7 | ) | (1.5 | ) | (1.5 | ) | |||||
Comprehensive income | 957.2 | 478.4 | 483.8 | ||||||||
Less: comprehensive income attributable to noncontrolling interest | 1.9 | 1.8 | 1.8 | ||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 955.3 | $ | 476.6 | $ | 482.0 |
2017 | 2016 | ||||||
(In millions, except share and per share amounts) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 134.1 | $ | 170.6 | |||
Accounts receivable, net | 237.8 | 191.0 | |||||
Materials and supplies | 150.8 | 152.6 | |||||
Other current assets | 157.4 | 133.8 | |||||
Total current assets | 680.1 | 648.0 | |||||
Investments | 44.6 | 32.9 | |||||
Property and equipment (including concession assets), net | 8,403.8 | 8,069.7 | |||||
Other assets | 70.2 | 66.9 | |||||
Total assets | $ | 9,198.7 | $ | 8,817.5 | |||
LIABILITIES AND EQUITY | �� | ||||||
Current liabilities: | |||||||
Long-term debt due within one year | $ | 38.8 | $ | 25.4 | |||
Short-term borrowings | 345.1 | 181.3 | |||||
Accounts payable and accrued liabilities | 587.8 | 537.7 | |||||
Total current liabilities | 971.7 | 744.4 | |||||
Long-term debt | 2,235.5 | 2,271.5 | |||||
Deferred income taxes | 987.2 | 1,289.3 | |||||
Other noncurrent liabilities and deferred credits | 138.9 | 107.8 | |||||
Total liabilities | 4,333.3 | 4,413.0 | |||||
Stockholders’ equity: | |||||||
$25 par, 4% noncumulative, preferred stock, 840,000 shares authorized, 649,736 shares issued, 242,170 shares outstanding | 6.1 | 6.1 | |||||
$.01 par, common stock, 400,000,000 shares authorized, 123,352,185 shares issued; 103,036,805 and 106,606,619 shares outstanding at December 31, 2017 and 2016, respectively | 1.0 | 1.1 | |||||
Additional paid-in capital | 943.3 | 954.8 | |||||
Retained earnings | 3,611.4 | 3,134.1 | |||||
Accumulated other comprehensive loss | (12.9 | ) | (6.2 | ) | |||
Total stockholders’ equity | 4,548.9 | 4,089.9 | |||||
Noncontrolling interest | 316.5 | 314.6 | |||||
Total equity | 4,865.4 | 4,404.5 | |||||
Total liabilities and equity | $ | 9,198.7 | $ | 8,817.5 |
2017 | 2016 | 2015 | |||||||||
(In millions) | |||||||||||
Operating activities: | |||||||||||
Net income | $ | 963.9 | $ | 479.9 | $ | 485.3 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 320.9 | 305.0 | 284.6 | ||||||||
Deferred income taxes | (301.3 | ) | 104.8 | 135.8 | |||||||
Equity in net earnings of affiliates | (11.5 | ) | (14.6 | ) | (18.3 | ) | |||||
Share-based compensation | 18.2 | 19.2 | 11.4 | ||||||||
Distributions from unconsolidated affiliates | 12.5 | 13.0 | 16.5 | ||||||||
Debt retirement and exchange costs | — | — | 7.6 | ||||||||
Settlement of foreign currency derivative instruments | (10.8 | ) | (58.4 | ) | (5.5 | ) | |||||
(Gain) loss on foreign currency derivative instruments | (38.2 | ) | 53.5 | 47.2 | |||||||
Mexican fuel excise tax credit | (44.1 | ) | (62.8 | ) | — | ||||||
Deemed mandatory repatriation tax | 41.3 | — | — | ||||||||
Changes in working capital items: | |||||||||||
Accounts receivable | (46.7 | ) | (18.3 | ) | 12.0 | ||||||
Materials and supplies | 1.4 | (14.2 | ) | (26.2 | ) | ||||||
Other current assets | (24.5 | ) | 9.9 | (10.1 | ) | ||||||
Accounts payable and accrued liabilities | 160.4 | 101.8 | (27.1 | ) | |||||||
Other, net | (13.1 | ) | 0.2 | (4.0 | ) | ||||||
Net cash provided by operating activities | 1,028.4 | 919.0 | 909.2 | ||||||||
Investing activities: | |||||||||||
Capital expenditures | (585.4 | ) | (563.6 | ) | (688.0 | ) | |||||
Purchase or replacement of equipment under operating leases | (42.6 | ) | (26.6 | ) | (144.2 | ) | |||||
Property investments in MSLLC | (26.0 | ) | (33.1 | ) | (17.4 | ) | |||||
Investments in and advances to affiliates | (20.4 | ) | (0.9 | ) | (0.7 | ) | |||||
Proceeds from disposal of property | 8.8 | 5.0 | 4.6 | ||||||||
Other, net | (15.5 | ) | (9.0 | ) | (27.3 | ) | |||||
Net cash used for investing activities | (681.1 | ) | (628.2 | ) | (873.0 | ) | |||||
Financing activities: | |||||||||||
Proceeds from short-term borrowings | 12,102.6 | 8,698.7 | 10,866.2 | ||||||||
Repayment of short-term borrowings | (11,943.6 | ) | (8,597.9 | ) | (11,237.3 | ) | |||||
Proceeds from issuance of long-term debt | — | 248.7 | 623.7 | ||||||||
Repayment of long-term debt | (25.4 | ) | (276.4 | ) | (149.8 | ) | |||||
Dividends paid | (142.5 | ) | (142.8 | ) | (140.1 | ) | |||||
Shares repurchased | (375.6 | ) | (185.4 | ) | (194.2 | ) | |||||
Debt costs | — | (2.6 | ) | (20.3 | ) | ||||||
Proceeds from employee stock plans | 0.7 | 0.9 | 4.2 | ||||||||
Net cash used for financing activities | (383.8 | ) | (256.8 | ) | (247.6 | ) | |||||
Cash and cash equivalents: | |||||||||||
Net increase (decrease) during each year | (36.5 | ) | 34.0 | (211.4 | ) | ||||||
At beginning of year | 170.6 | 136.6 | 348.0 | ||||||||
At end of year | $ | 134.1 | $ | 170.6 | $ | 136.6 | |||||
Supplemental cash flow information | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Capital expenditures and purchase or replacement of equipment under operating lease accrued but not yet paid at end of year | $ | 34.9 | $ | 60.8 | $ | 40.4 | |||||
Other investing activities accrued but not yet paid at the end of the year | 56.7 | 38.3 | 22.3 | ||||||||
Capital lease obligations incurred | 0.1 | 2.4 | 4.7 | ||||||||
Non-cash asset acquisitions | 0.1 | 4.8 | 7.6 | ||||||||
Dividends accrued but not yet paid at end of year | 37.2 | 35.2 | 35.9 | ||||||||
Cash payments: | |||||||||||
Interest paid, net of amounts capitalized | $ | 97.9 | $ | 84.3 | $ | 81.1 | |||||
Income tax payments, net of refunds | 51.1 | 40.5 | 40.3 |
$25 Par Preferred Stock | $.01 Par Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non- controlling Interest | Total | |||||||||||||||||||||
Balance at December 31, 2014 | $ | 6.1 | $ | 1.1 | $ | 949.8 | $ | 2,801.7 | $ | (3.2 | ) | $ | 308.6 | $ | 4,064.1 | ||||||||||||
Net income | 483.5 | 1.8 | 485.3 | ||||||||||||||||||||||||
Other comprehensive loss | (1.5 | ) | (1.5 | ) | |||||||||||||||||||||||
Dividends on common stock ($1.32/share) | (144.8 | ) | (144.8 | ) | |||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | |||||||||||||||||||||||
Share repurchases | (18.7 | ) | (175.5 | ) | (194.2 | ) | |||||||||||||||||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 4.7 | 4.7 | |||||||||||||||||||||||||
Excess tax benefit from share-based compensation | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||||
Share-based compensation | 11.4 | 11.4 | |||||||||||||||||||||||||
Balance at December 31, 2015 | 6.1 | 1.1 | 947.1 | 2,964.7 | (4.7 | ) | 310.4 | 4,224.7 | |||||||||||||||||||
Net income | 478.1 | 1.8 | 479.9 | ||||||||||||||||||||||||
Other comprehensive loss | (1.5 | ) | (1.5 | ) | |||||||||||||||||||||||
Contributions from noncontrolling interest | 2.4 | 2.4 | |||||||||||||||||||||||||
Dividends on common stock ($1.32/share) | (141.9 | ) | (141.9 | ) | |||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | |||||||||||||||||||||||
Share repurchases | (18.8 | ) | (166.6 | ) | (185.4 | ) | |||||||||||||||||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 1.6 | 1.6 | |||||||||||||||||||||||||
Excess tax benefit from share-based compensation | 5.7 | 5.7 | |||||||||||||||||||||||||
Share-based compensation | 19.2 | 19.2 | |||||||||||||||||||||||||
Balance at December 31, 2016 | 6.1 | 1.1 | 954.8 | 3,134.1 | (6.2 | ) | 314.6 | 4,404.5 | |||||||||||||||||||
Cumulative-effect adjustment due to adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting | 1.3 | 1.2 | 2.5 | ||||||||||||||||||||||||
Net income | 962.0 | 1.9 | 963.9 | ||||||||||||||||||||||||
Other comprehensive loss | (6.7 | ) | (6.7 | ) | |||||||||||||||||||||||
Dividends on common stock ($1.38/share) | (144.2 | ) | (144.2 | ) | |||||||||||||||||||||||
Dividends on $25 par preferred stock ($1.00/share) | (0.2 | ) | (0.2 | ) | |||||||||||||||||||||||
Share repurchases | (0.1 | ) | (34.0 | ) | (341.5 | ) | (375.6 | ) | |||||||||||||||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | 3.0 | 3.0 | |||||||||||||||||||||||||
Share-based compensation | 18.2 | 18.2 | |||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 6.1 | $ | 1.0 | $ | 943.3 | $ | 3,611.4 | $ | (12.9 | ) | $ | 316.5 | $ | 4,865.4 |
2017 | 2016 | 2015 | |||||||||
Net income available to common stockholders for purposes of computing basic and diluted earnings per share | $ | 961.8 | $ | 477.9 | $ | 483.3 | |||||
Weighted-average number of shares outstanding (in thousands): | |||||||||||
Basic shares | 104,728 | 107,560 | 109,709 | ||||||||
Effect of dilution | 312 | 201 | 206 | ||||||||
Diluted shares | 105,040 | 107,761 | 109,915 | ||||||||
Earnings per share: | |||||||||||
Basic earnings per share | $ | 9.18 | $ | 4.44 | $ | 4.41 | |||||
Diluted earnings per share | $ | 9.16 | $ | 4.43 | $ | 4.40 |
Potentially dilutive shares excluded from the calculation (in thousands): | 2017 | 2016 | 2015 | |||||
Stock options excluded as their inclusion would be anti-dilutive | 150 | 185 | 84 |
As of December 31, 2017 | Cost | Accumulated Depreciation | Net Book Value | Depreciation Rates for 2017 | ||||||||||
Land | $ | 218.6 | $ | — | $ | 218.6 | N/A | |||||||
Concession land rights | 141.2 | (26.5 | ) | 114.7 | 1.0 | % | ||||||||
Rail and other track material | 1,967.0 | (425.9 | ) | 1,541.1 | 2.7-3.0% | |||||||||
Ties | 1,779.6 | (441.0 | ) | 1,338.6 | 2.0-4.8% | |||||||||
Grading | 969.9 | (162.1 | ) | 807.8 | 0.9 | % | ||||||||
Bridges and tunnels | 775.0 | (144.9 | ) | 630.1 | 1.1 | % | ||||||||
Ballast | 795.2 | (222.0 | ) | 573.2 | 2.3-4.2% | |||||||||
Other (a) | 1,270.4 | (363.3 | ) | 907.1 | 3.2 | % | ||||||||
Total road property | 7,557.1 | (1,759.2 | ) | 5,797.9 | 2.8 | % | ||||||||
Locomotives | 1,527.9 | (375.2 | ) | 1,152.7 | 4.7 | % | ||||||||
Freight cars | 937.9 | (168.9 | ) | 769.0 | 2.7 | % | ||||||||
Other equipment | 69.1 | (26.6 | ) | 42.5 | 5.9 | % | ||||||||
Total equipment | 2,534.9 | (570.7 | ) | 1,964.2 | 4.0 | % | ||||||||
Technology and other | 229.1 | (144.4 | ) | 84.7 | 17.1 | % | ||||||||
Construction in progress | 223.7 | — | 223.7 | N/A | ||||||||||
Total property and equipment (including concession assets) | $ | 10,904.6 | $ | (2,500.8 | ) | $ | 8,403.8 | N/A |
As of December 31, 2016 | Cost | Accumulated Depreciation | Net Book Value | Depreciation Rates for 2016 | ||||||||||
Land | $ | 219.2 | $ | — | $ | 219.2 | N/A | |||||||
Concession land rights | 141.2 | (25.1 | ) | 116.1 | 1.0 | % | ||||||||
Rail and other track material | 1,925.4 | (445.0 | ) | 1,480.4 | 1.6-3.2% | |||||||||
Ties | 1,710.1 | (423.8 | ) | 1,286.3 | 2.0-5.0% | |||||||||
Grading | 910.7 | (153.9 | ) | 756.8 | 0.9 | % | ||||||||
Bridges and tunnels | 739.4 | (137.6 | ) | 601.8 | 1.1 | % | ||||||||
Ballast | 748.3 | (215.1 | ) | 533.2 | 2.5-4.7% | |||||||||
Other (a) | 1,152.1 | (332.4 | ) | 819.7 | 3.0 | % | ||||||||
Total road property | 7,186.0 | (1,707.8 | ) | 5,478.2 | 2.8 | % | ||||||||
Locomotives | 1,485.9 | (356.9 | ) | 1,129.0 | 4.5 | % | ||||||||
Freight cars | 887.7 | (152.5 | ) | 735.2 | 3.5 | % | ||||||||
Other equipment | 66.2 | (23.6 | ) | 42.6 | 6.4 | % | ||||||||
Total equipment | 2,439.8 | (533.0 | ) | 1,906.8 | 4.2 | % | ||||||||
Technology and other | 182.2 | (126.2 | ) | 56.0 | 17.4 | % | ||||||||
Construction in progress | 293.4 | — | 293.4 | N/A | ||||||||||
Total property and equipment (including concession assets) | $ | 10,461.8 | $ | (2,392.1 | ) | $ | 8,069.7 | N/A |
2017 | 2016 | ||||||
Refundable taxes | $ | 81.6 | $ | 64.0 | |||
Mexican fuel excise tax credit | 35.1 | 49.2 | |||||
Prepaid expenses | 18.3 | 18.2 | |||||
Other | 22.4 | 2.4 | |||||
Other current assets | $ | 157.4 | $ | 133.8 |
2017 | 2016 | ||||||
Accounts payable | $ | 225.1 | $ | 247.8 | |||
Income and other taxes | 111.8 | 36.0 | |||||
Accrued wages and vacation | 89.0 | 78.7 | |||||
Derailments, personal injury and other claim provisions | 48.0 | 39.2 | |||||
Foreign currency derivative instruments | — | 41.1 | |||||
Dividends payable | 37.2 | 35.2 | |||||
Other | 76.7 | 59.7 | |||||
Accounts payable and accrued liabilities | $ | 587.8 | $ | 537.7 |
Foreign currency forward contracts | |||||||||||||||||||||||||||||||||
Contracts to purchase Ps./pay USD | Offsetting contracts to sell Ps./receive USD | ||||||||||||||||||||||||||||||||
Notional amount | Notional amount | Weighted-average exchange rate (in Ps./USD) | Maturity date | Notional amount | Notional amount | Weighted-average exchange rate (in Ps./USD) | Maturity date | Cash received/(paid) on settlement | |||||||||||||||||||||||||
Contracts executed in 2016 and settled in 2017 | $ | 340.0 | Ps. | 6,207.7 | Ps. | 18.3 | 1/17/2017 | $ | 287.0 | Ps. | 6,207.7 | Ps. | 21.6 | 1/17/2017 | $ | (53.0 | ) | ||||||||||||||||
Contracts executed in 2016 and settled in 2016 | $ | 60.0 | Ps. | 1,057.3 | Ps. | 17.6 | 4/29/2016 | $ | 60.7 | Ps. | 1,057.3 | Ps. | 17.4 | 4/29/2016 | $ | 0.7 | |||||||||||||||||
Contracts executed in 2015 and settled in 2016 | $ | 300.0 | Ps. | 4,480.4 | Ps. | 14.9 | 1/15/2016 | $ | 251.0 | Ps. | 4,480.4 | Ps. | 17.9 | 1/15/2016 | $ | (49.0 | ) | ||||||||||||||||
Contracts executed in 2014 and settled in 2015 | $ | 300.0 | Ps. | 4,364.7 | Ps. | 14.6 | 1/15/2015 | $ | 298.8 | Ps. | 4,364.7 | Ps. | 14.6 | 1/15/2015 | $ | (1.2 | ) | ||||||||||||||||
Foreign currency zero-cost collar contracts | |||||||||||||||||||||||||||||||||
Notional amount | Maturity date | Weighted-average call rate outstanding options (in Ps./USD) | Weighted-average put rate outstanding options (in Ps./USD) | Cash received/(paid) on settlement | |||||||||||||||||||||||||||||
Contracts executed in 2017 and outstanding at December 31, 2017 | $ | 80.0 | 1/16/2018 | Ps. | 21.7 | Ps. | 24.8 | — | |||||||||||||||||||||||||
Contracts executed in 2017 and settled in 2017 | $ | 450.0 | — | — | — | $ | 42.2 | ||||||||||||||||||||||||||
Contracts executed in 2015 and settled in 2016 | $ | 80.0 | — | — | — | $ | (10.1 | ) | |||||||||||||||||||||||||
Contracts executed in 2015 and settled in 2015 | $ | 50.0 | — | — | — | $ | (4.3 | ) |
Derivative Assets | |||||||||
Balance Sheet Location | 2017 | 2016 | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency zero-cost collar contracts | Other current assets | $ | 7.9 | $ | — | ||||
Total derivatives not designated as hedging instruments | 7.9 | — | |||||||
Total derivative assets | $ | 7.9 | $ | — |
Derivative Liabilities | |||||||||
Balance Sheet Location | 2017 | 2016 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Treasury lock agreements | Other noncurrent liabilities and deferred credits | $ | 5.6 | $ | — | ||||
Total derivatives designated as hedging instruments | 5.6 | — | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency forward contracts | Accounts payable and accrued liabilities | — | 41.1 | ||||||
Total derivatives not designated as hedging instruments | — | 41.1 | |||||||
Total derivative liabilities | $ | 5.6 | $ | 41.1 |
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in OCI on Derivative | ||||||||||||
2017 | 2016 | 2015 | |||||||||||
Treasury lock agreements | $ | (5.6 | ) | $ | — | $ | — | ||||||
Total | $ | (5.6 | ) | $ | — | $ | — | ||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Recognized in Income on Derivative | |||||||||||
2017 | 2016 | 2015 | |||||||||||
Foreign currency forward contracts | Foreign exchange gain (loss) | $ | (11.9 | ) | $ | (49.6 | ) | $ | (36.7 | ) | |||
Foreign currency zero-cost collar contracts | Foreign exchange gain (loss) | 50.1 | (3.9 | ) | (10.5 | ) | |||||||
Total | $ | 38.2 | $ | (53.5 | ) | $ | (47.2 | ) |
2017 | 2016 | ||||||||||||||||||||||
Principal | Unamortized Discount and Debt Issuance Costs | Net | Principal | Unamortized Discount and Debt Issuance Costs | Net | ||||||||||||||||||
Revolving credit facilities, variable interest rate, due 2020 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
KCS 2.35% senior notes, due 2020 | 257.3 | 1.2 | 256.1 | 257.3 | 1.7 | 255.6 | |||||||||||||||||
KCS 3.00% senior notes, due 2023 | 439.1 | 4.0 | 435.1 | 439.1 | 4.7 | 434.4 | |||||||||||||||||
KCS 3.85% senior notes, due 2023 | 199.2 | 1.7 | 197.5 | 199.2 | 2.0 | 197.2 | |||||||||||||||||
KCS 3.125% senior notes, due 2026 | 250.0 | 3.1 | 246.9 | 250.0 | 3.4 | 246.6 | |||||||||||||||||
KCS 4.30% senior notes, due 2043 | 448.7 | 9.3 | 439.4 | 448.7 | 9.6 | 439.1 | |||||||||||||||||
KCS 4.95% senior notes, due 2045 | 499.2 | 7.6 | 491.6 | 499.2 | 8.0 | 491.2 | |||||||||||||||||
KCSR senior notes 3.85% to 4.95%, due through 2045 | 2.9 | — | 2.9 | 2.9 | — | 2.9 | |||||||||||||||||
KCSM senior notes 2.35% to 3.00%, due through 2023 | 28.5 | 0.2 | 28.3 | 28.5 | 0.2 | 28.3 | |||||||||||||||||
RRIF loans 2.96% to 4.29%, due serially through 2037 | 77.8 | 0.5 | 77.3 | 81.4 | 0.5 | 80.9 | |||||||||||||||||
Financing agreements 5.737% to 9.310%, due serially through 2023 | 84.2 | 0.3 | 83.9 | 102.5 | 0.4 | 102.1 | |||||||||||||||||
Capital lease obligations, due serially to 2024 | 15.0 | — | 15.0 | 18.3 | — | 18.3 | |||||||||||||||||
Other debt obligations | 0.3 | — | 0.3 | 0.3 | — | 0.3 | |||||||||||||||||
Total | 2,302.2 | 27.9 | 2,274.3 | 2,327.4 | 30.5 | 2,296.9 | |||||||||||||||||
Less: Debt due within one year | 38.8 | — | 38.8 | 25.4 | — | 25.4 | |||||||||||||||||
Long-term debt | $ | 2,263.4 | $ | 27.9 | $ | 2,235.5 | $ | 2,302.0 | $ | 30.5 | $ | 2,271.5 |
Long- Term Debt | Capital Leases | Total Debt | |||||||||||||||||||||||||
Years | Minimum Lease Payments | Less Interest | Net Present Value | Operating Leases | Total | ||||||||||||||||||||||
2018 | $ | 35.2 | $ | 4.9 | $ | 1.3 | $ | 3.6 | $ | 38.8 | $ | 60.9 | $ | 99.7 | |||||||||||||
2019 | 15.5 | 3.6 | 0.9 | 2.7 | 18.2 | 52.1 | 70.3 | ||||||||||||||||||||
2020 | 299.0 | 2.7 | 0.8 | 1.9 | 300.9 | 41.8 | 342.7 | ||||||||||||||||||||
2021 | 12.3 | 2.7 | 0.6 | 2.1 | 14.4 | 28.2 | 42.6 | ||||||||||||||||||||
2022 | 12.4 | 2.7 | 0.4 | 2.3 | 14.7 | 21.5 | 36.2 | ||||||||||||||||||||
Thereafter | 1,912.8 | 2.5 | 0.1 | 2.4 | 1,915.2 | 77.2 | 1,992.4 | ||||||||||||||||||||
Total | $ | 2,287.2 | $ | 19.1 | $ | 4.1 | $ | 15.0 | $ | 2,302.2 | $ | 281.7 | $ | 2,583.9 |
2017 | 2016 | 2015 | |||||||||
Current: | |||||||||||
Federal | $ | 47.3 | $ | 1.0 | $ | — | |||||
State and local | 0.6 | 0.6 | 0.3 | ||||||||
Foreign | 163.8 | 76.4 | 51.2 | ||||||||
Total current | 211.7 | 78.0 | 51.5 | ||||||||
Deferred: | |||||||||||
Federal | (350.1 | ) | 92.7 | 109.3 | |||||||
State and local | 11.9 | 13.1 | 15.5 | ||||||||
Foreign | 36.9 | (1.0 | ) | 11.0 | |||||||
Total deferred | (301.3 | ) | 104.8 | 135.8 | |||||||
Total income tax expense (benefit) | $ | (89.6 | ) | $ | 182.8 | $ | 187.3 |
2017 | 2016 | 2015 | |||||||||
Income before income taxes: | |||||||||||
U.S. | $ | 331.8 | $ | 279.9 | $ | 315.0 | |||||
Foreign | 542.5 | 382.8 | 357.6 | ||||||||
Total income before income taxes | $ | 874.3 | $ | 662.7 | $ | 672.6 |
2017 | 2016 | ||||||
Assets: | |||||||
Tax credit and loss carryovers | $ | 26.9 | $ | 70.7 | |||
Reserves not currently deductible for tax | 54.1 | 106.4 | |||||
Other | 25.2 | 31.6 | |||||
Gross deferred tax assets before valuation allowance | 106.2 | 208.7 | |||||
Valuation allowance | (2.1 | ) | (1.7 | ) | |||
Net deferred tax assets | 104.1 | 207.0 | |||||
Liabilities: | |||||||
Property | (1,012.7 | ) | (1,389.0 | ) | |||
Investments | (48.0 | ) | (73.8 | ) | |||
Other | (30.6 | ) | (33.5 | ) | |||
Gross deferred tax liabilities | (1,091.3 | ) | (1,496.3 | ) | |||
Net deferred tax liability | $ | (987.2 | ) | $ | (1,289.3 | ) |
2017 | 2016 | 2015 | ||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||
Income tax expense using the statutory rate in effect | $ | 306.0 | 35.0 | % | $ | 231.9 | 35.0 | % | $ | 235.4 | 35.0 | % | ||||||||
Tax effect of: | ||||||||||||||||||||
Difference between U.S. and foreign tax rate | (25.1 | ) | (2.9 | %) | (17.4 | ) | (2.6 | %) | (17.8 | ) | (2.6 | %) | ||||||||
Foreign exchange (i) | 31.6 | 3.6 | % | (45.0 | ) | (6.8 | %) | (40.5 | ) | (6.1 | %) | |||||||||
State and local income tax provision, net | 8.3 | 1.0 | % | 8.1 | 1.2 | % | 10.3 | 1.5 | % | |||||||||||
Change in U.S. tax rate | (487.6 | ) | (55.8 | %) | — | — | — | — | ||||||||||||
Deemed mandatory repatriation | 74.6 | 8.6 | % | — | — | — | — | |||||||||||||
Other, net | 2.6 | 0.3 | % | 5.2 | 0.8 | % | (0.1 | ) | — | |||||||||||
Income tax expense (benefit) | $ | (89.6 | ) | (10.2 | %) | $ | 182.8 | 27.6 | % | $ | 187.3 | 27.8 | % |
2017 | 2016 | ||||||
Balance at January 1, | $ | 3.8 | $ | 1.7 | |||
Additions based on tax positions related to the current year | — | 1.3 | |||||
Additions for tax positions of prior years | — | 2.5 | |||||
Reductions for tax positions of prior years | (0.1 | ) | — | ||||
Reductions as a result of lapse of statute of limitations | (3.7 | ) | (1.7 | ) | |||
Balance at December 31, | $ | — | $ | 3.8 |
Shares Authorized | Shares Issued | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
$25 par, 4% noncumulative, preferred stock | 840,000 | 840,000 | 649,736 | 649,736 | |||||||
$1 par, preferred stock | 2,000,000 | 2,000,000 | — | — | |||||||
$.01 par, common stock | 400,000,000 | 400,000,000 | 123,352,185 | 123,352,185 |
2017 | 2016 | ||||
$25 par, 4% noncumulative, preferred stock | 242,170 | 242,170 | |||
$.01 par, common stock | 103,036,805 | 106,606,619 |
2017 | 2016 | 2015 | ||||||
Balance at beginning of year | 16,745,566 | 14,891,041 | 12,959,855 | |||||
Shares repurchased | 3,759,678 | 2,127,612 | 2,133,984 | |||||
Shares issued to fund stock option exercises | (9,110 | ) | (15,264 | ) | (89,035 | ) | ||
Employee stock purchase plan shares issued | (76,401 | ) | (82,372 | ) | (52,736 | ) | ||
Nonvested shares issued | (124,519 | ) | (179,309 | ) | (62,936 | ) | ||
Nonvested shares forfeited | 20,166 | 3,858 | 1,909 | |||||
Balance at end of year | 20,315,380 | 16,745,566 | 14,891,041 |
2017 | 2016 | 2015 | |||||||||
Cash dividends declared per common share | $ | 1.38 | $ | 1.32 | $ | 1.32 |
2017 | 2016 | 2015 | |||||||||
Expected dividend yield | 1.52 | % | 1.60 | % | 0.94 | % | |||||
Expected volatility | 30.74 | % | 32.29 | % | 37.11 | % | |||||
Risk-free interest rate | 2.20 | % | 1.51 | % | 1.82 | % | |||||
Expected term (years) | 6.0 | 6.0 | 6.0 | ||||||||
Weighted-average grant date fair value of stock options granted | $ | 24.49 | $ | 22.98 | $ | 41.49 |
Number of Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
In years | In millions | |||||||||||
Options outstanding at December 31, 2016 | 414,803 | $ | 76.87 | |||||||||
Granted | 97,090 | 87.11 | ||||||||||
Exercised | (9,110 | ) | 80.32 | |||||||||
Forfeited or expired | (2,159 | ) | 88.35 | |||||||||
Options outstanding at December 31, 2017 | 500,624 | $ | 78.74 | 6.1 | $ | 14.0 | ||||||
Exercisable at December 31, 2017 | 339,711 | $ | 74.33 | 5.0 | $ | 11.0 |
2017 | 2016 | 2015 | |||||||||
Aggregate grant-date fair value of stock options vested | $ | 2.8 | $ | 1.8 | $ | 2.0 | |||||
Intrinsic value of stock options exercised | 0.2 | 0.6 | 6.1 | ||||||||
Cash received from option exercises | 0.7 | 0.9 | 4.2 | ||||||||
Tax benefit from options exercised during the annual period | 0.1 | 0.2 | 2.3 |
Nonvested Stock | |||||
Expected dividend yield | 1.58 | % | |||
Expected volatility | 31.68 | % | |||
Risk-free interest rate | 0.53% - 1.89% | ||||
Expected term (years) | 1.9 | ||||
Weighted-average grant date fair value | $ | 70.95 |
Number of Shares | Weighted- Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||
In millions | ||||||||||
Nonvested stock at December 31, 2016 | 238,010 | $ | 91.55 | |||||||
Granted | 121,307 | 93.29 | ||||||||
Vested | (62,472 | ) | 87.51 | |||||||
Forfeited | (20,166 | ) | 90.83 | |||||||
Nonvested stock at December 31, 2017 | 276,679 | $ | 93.28 | $ | 29.1 |
Target Number of Shares * | Weighted-Average Grant Date Fair Value | |||||
Nonvested stock, at December 31, 2016 | 144,399 | $ | 97.08 | |||
Granted | 54,588 | 87.09 | ||||
Vested | (36,323 | ) | 94.23 | |||
Forfeited | (23,162 | ) | 102.30 | |||
Nonvested stock, at December 31, 2017 | 139,502 | $ | 93.05 |
Exercise Date | Received from Employees(i) In millions | |||||||||||
Date Issued | Purchase Price | Shares Issued | ||||||||||
July 2017 offering | January 4, 2018 | $ | 89.18 | 30,595 | $ | 2.7 | ||||||
January 2017 offering | July 5, 2017 | 68.70 | 40,293 | 2.8 | ||||||||
July 2016 offering | January 12, 2017 | 72.12 | 36,108 | 2.6 | ||||||||
January 2016 offering | July 11, 2016 | 62.66 | 41,895 | 2.6 | ||||||||
July 2015 offering | January 8, 2016 | 63.47 | 40,477 | 2.6 | ||||||||
January 2015 offering | July 6, 2015 | 77.52 | 35,097 | 2.7 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Expected dividend yield | 1.47 | % | 1.65 | % | 1.20 | % | |||||
Expected volatility | 17.09 | % | 23.84 | % | 17.00 | % | |||||
Risk-free interest rate | 0.89 | % | 0.46 | % | 0.10 | % | |||||
Expected term (years) | 0.5 | 0.5 | 0.5 | ||||||||
Weighted-average grant date fair value | $ | 17.90 | $ | 17.29 | $ | 20.55 |
2017 | 2016 | ||||||
Balance at beginning of year | $ | 23.8 | $ | 23.9 | |||
Accruals | 4.8 | 4.8 | |||||
Changes in estimate | (3.6 | ) | (1.1 | ) | |||
Payments | (5.7 | ) | (3.8 | ) | |||
Balance at end of year | $ | 19.3 | $ | 23.8 |
Fourth | Third | Second | First | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
2017 | |||||||||||||||
Revenues | $ | 660.4 | $ | 656.6 | $ | 656.4 | $ | 609.5 | |||||||
Operating income | 237.8 | (i) | 233.8 | (i) | 239.3 | (i) | 210.7 | (i) | |||||||
Net income | 552.4 | (iii) | 129.9 | 134.7 | 146.9 | ||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 551.7 | 129.3 | 134.4 | 146.6 | |||||||||||
Per share data: | |||||||||||||||
Basic earnings per common share | $ | 5.35 | $ | 1.24 | $ | 1.27 | $ | 1.38 | |||||||
Diluted earnings per common share | 5.33 | 1.23 | 1.27 | 1.38 | |||||||||||
2016 | |||||||||||||||
Revenues | $ | 598.5 | $ | 604.5 | $ | 568.5 | $ | 562.7 | |||||||
Operating income | 210.9 | (ii) | 199.8 | (ii) | 219.9 | (ii) | 187.9 | ||||||||
Net income | 130.3 | 121.0 | 120.5 | 108.1 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 129.6 | 120.6 | 120.1 | 107.8 | |||||||||||
Per share data: | |||||||||||||||
Basic earnings per common share | $ | 1.21 | $ | 1.12 | $ | 1.12 | $ | 1.00 | |||||||
Diluted earnings per common share | 1.21 | 1.12 | 1.11 | 0.99 |
Years ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenues | |||||||||||
U.S. | $ | 1,359.5 | $ | 1,210.8 | $ | 1,248.4 | |||||
Mexico | 1,223.4 | 1,123.4 | 1,170.4 | ||||||||
Total revenues | $ | 2,582.9 | $ | 2,334.2 | $ | 2,418.8 |
December 31, | |||||||
2017 | 2016 | ||||||
Property and equipment (including concession assets), net | |||||||
U.S. | $ | 5,227.3 | $ | 4,960.6 | |||
Mexico | 3,176.5 | 3,109.1 | |||||
Total property and equipment (including concession assets), net | $ | 8,403.8 | $ | 8,069.7 |
2017 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Revenues | $ | — | $ | 1,244.7 | $ | 1,359.0 | $ | (20.8 | ) | $ | 2,582.9 | ||||||||
Operating expenses | 5.7 | 882.2 | 791.0 | (17.6 | ) | 1,661.3 | |||||||||||||
Operating income (loss) | (5.7 | ) | 362.5 | 568.0 | (3.2 | ) | 921.6 | ||||||||||||
Equity in net earnings of affiliates | 974.8 | 6.4 | 9.6 | (979.3 | ) | 11.5 | |||||||||||||
Interest expense | (81.3 | ) | (72.2 | ) | (34.4 | ) | 87.7 | (100.2 | ) | ||||||||||
Debt retirement and exchange costs | — | — | — | — | — | ||||||||||||||
Foreign exchange gain | — | — | 41.7 | — | 41.7 | ||||||||||||||
Other income (expense), net | 86.7 | (0.6 | ) | 1.2 | (87.6 | ) | (0.3 | ) | |||||||||||
Income before income taxes | 974.5 | 296.1 | 586.1 | (982.4 | ) | 874.3 | |||||||||||||
Income tax expense (benefit) | 9.9 | (353.1 | ) | 254.2 | (0.6 | ) | (89.6 | ) | |||||||||||
Net income | 964.6 | 649.2 | 331.9 | (981.8 | ) | 963.9 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1.9 | — | 1.9 | ||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 964.6 | 649.2 | 330.0 | (981.8 | ) | 962.0 | |||||||||||||
Other comprehensive income (loss) | (6.7 | ) | — | 0.5 | (0.5 | ) | (6.7 | ) | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 957.9 | $ | 649.2 | $ | 330.5 | $ | (982.3 | ) | $ | 955.3 |
2016 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Revenues | $ | — | $ | 1,101.3 | $ | 1,252.5 | $ | (19.6 | ) | $ | 2,334.2 | ||||||||
Operating expenses | 4.7 | 794.7 | 734.0 | (17.7 | ) | 1,515.7 | |||||||||||||
Operating income (loss) | (4.7 | ) | 306.6 | 518.5 | (1.9 | ) | 818.5 | ||||||||||||
Equity in net earnings of affiliates | 468.5 | 5.3 | 12.7 | (471.9 | ) | 14.6 | |||||||||||||
Interest expense | (81.9 | ) | (83.0 | ) | (63.1 | ) | 130.3 | (97.7 | ) | ||||||||||
Debt retirement and exchange costs | — | — | — | — | — | ||||||||||||||
Foreign exchange loss | — | — | (72.0 | ) | — | (72.0 | ) | ||||||||||||
Other income (expense), net | 104.4 | (0.2 | ) | 24.1 | (129.0 | ) | (0.7 | ) | |||||||||||
Income before income taxes | 486.3 | 228.7 | 420.2 | (472.5 | ) | 662.7 | |||||||||||||
Income tax expense | 7.1 | 87.4 | 89.2 | (0.9 | ) | 182.8 | |||||||||||||
Net income | 479.2 | 141.3 | 331.0 | (471.6 | ) | 479.9 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1.8 | — | 1.8 | ||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 479.2 | 141.3 | 329.2 | (471.6 | ) | 478.1 | |||||||||||||
Other comprehensive loss | (1.5 | ) | — | (2.5 | ) | 2.5 | (1.5 | ) | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 477.7 | $ | 141.3 | $ | 326.7 | $ | (469.1 | ) | $ | 476.6 |
2015 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Revenues | $ | — | $ | 1,135.9 | $ | 1,302.3 | $ | (19.4 | ) | $ | 2,418.8 | ||||||||
Operating expenses | 4.6 | 779.7 | 849.3 | (18.6 | ) | 1,615.0 | |||||||||||||
Operating income (loss) | (4.6 | ) | 356.2 | 453.0 | (0.8 | ) | 803.8 | ||||||||||||
Equity in net earnings of affiliates | 464.0 | 5.6 | 16.5 | (467.8 | ) | 18.3 | |||||||||||||
Interest expense | (4.6 | ) | (84.9 | ) | (40.1 | ) | 47.7 | (81.9 | ) | ||||||||||
Debt retirement and exchange costs | 0.1 | (5.2 | ) | (2.5 | ) | — | (7.6 | ) | |||||||||||
Foreign exchange loss | — | — | (56.6 | ) | — | (56.6 | ) | ||||||||||||
Other income (expense), net | 45.9 | (3.1 | ) | 1.4 | (47.6 | ) | (3.4 | ) | |||||||||||
Income before income taxes | 500.8 | 268.6 | 371.7 | (468.5 | ) | 672.6 | |||||||||||||
Income tax expense | 16.5 | 98.3 | 72.5 | — | 187.3 | ||||||||||||||
Net income | 484.3 | 170.3 | 299.2 | (468.5 | ) | 485.3 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1.8 | — | 1.8 | ||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 484.3 | 170.3 | 297.4 | (468.5 | ) | 483.5 | |||||||||||||
Other comprehensive loss | (1.5 | ) | — | (2.2 | ) | 2.2 | (1.5 | ) | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 482.8 | $ | 170.3 | $ | 295.2 | $ | (466.3 | ) | $ | 482.0 |
December 31, 2017 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Assets: | |||||||||||||||||||
Current assets | $ | 292.0 | $ | 222.9 | $ | 475.5 | $ | (310.3 | ) | $ | 680.1 | ||||||||
Investments | — | 3.9 | 40.7 | — | 44.6 | ||||||||||||||
Investments in consolidated subsidiaries | 4,462.4 | 184.2 | — | (4,646.6 | ) | — | |||||||||||||
Property and equipment (including concession assets), net | — | 4,454.8 | 3,954.9 | (5.9 | ) | 8,403.8 | |||||||||||||
Other assets | 2,159.6 | 46.8 | 252.5 | (2,388.7 | ) | 70.2 | |||||||||||||
Total assets | $ | 6,914.0 | $ | 4,912.6 | $ | 4,723.6 | $ | (7,351.5 | ) | $ | 9,198.7 | ||||||||
Liabilities and equity: | |||||||||||||||||||
Current liabilities | $ | 277.9 | $ | 673.6 | $ | 332.0 | $ | (311.8 | ) | $ | 971.7 | ||||||||
Long-term debt | 2,066.8 | 1,517.2 | 1,040.3 | (2,388.8 | ) | 2,235.5 | |||||||||||||
Deferred income taxes | (7.1 | ) | 818.8 | 177.0 | (1.5 | ) | 987.2 | ||||||||||||
Other liabilities | 13.5 | 70.3 | 55.1 | — | 138.9 | ||||||||||||||
Stockholders’ equity | 4,562.9 | 1,832.7 | 2,802.7 | (4,649.4 | ) | 4,548.9 | |||||||||||||
Noncontrolling interest | — | — | 316.5 | — | 316.5 | ||||||||||||||
Total liabilities and equity | $ | 6,914.0 | $ | 4,912.6 | $ | 4,723.6 | $ | (7,351.5 | ) | $ | 9,198.7 |
December 31, 2016 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Assets: | |||||||||||||||||||
Current assets | $ | 18.3 | $ | 275.4 | $ | 389.6 | $ | (35.3 | ) | $ | 648.0 | ||||||||
Investments | — | 3.9 | 29.0 | — | 32.9 | ||||||||||||||
Investments in consolidated subsidiaries | 3,497.7 | 179.1 | — | (3,676.8 | ) | — | |||||||||||||
Property and equipment (including concession assets), net | — | 4,203.6 | 3,868.8 | (2.7 | ) | 8,069.7 | |||||||||||||
Other assets | 2,767.9 | 43.0 | 252.6 | (2,996.6 | ) | 66.9 | |||||||||||||
Total assets | $ | 6,283.9 | $ | 4,705.0 | $ | 4,540.0 | $ | (6,711.4 | ) | $ | 8,817.5 | ||||||||
Liabilities and equity: | |||||||||||||||||||
Current liabilities | $ | 87.3 | $ | 432.8 | $ | 261.0 | $ | (36.7 | ) | $ | 744.4 | ||||||||
Long-term debt | 2,064.3 | 1,928.9 | 1,274.9 | (2,996.6 | ) | 2,271.5 | |||||||||||||
Deferred income taxes | 26.9 | 1,075.3 | 188.0 | (0.9 | ) | 1,289.3 | |||||||||||||
Other liabilities | 4.0 | 86.3 | 17.5 | — | 107.8 | ||||||||||||||
Stockholders’ equity | 4,101.4 | 1,181.7 | 2,484.0 | (3,677.2 | ) | 4,089.9 | |||||||||||||
Noncontrolling interest | — | — | 314.6 | — | 314.6 | ||||||||||||||
Total liabilities and equity | $ | 6,283.9 | $ | 4,705.0 | $ | 4,540.0 | $ | (6,711.4 | ) | $ | 8,817.5 |
2017 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Operating activities: | |||||||||||||||||||
Net cash provided | $ | 220.4 | $ | 557.0 | $ | 266.9 | $ | (15.9 | ) | $ | 1,028.4 | ||||||||
Investing activities: | |||||||||||||||||||
Capital expenditures | — | (375.5 | ) | (209.9 | ) | — | (585.4 | ) | |||||||||||
Purchase or replacement of equipment under operating leases | — | (42.6 | ) | — | — | (42.6 | ) | ||||||||||||
Property investments in MSLLC | — | — | (26.0 | ) | — | (26.0 | ) | ||||||||||||
Investments in and advances to affiliates | (0.6 | ) | (0.6 | ) | (20.4 | ) | 1.2 | (20.4 | ) | ||||||||||
Proceeds from repayment of loans to affiliates | 12,241.7 | — | — | (12,241.7 | ) | — | |||||||||||||
Loans to affiliates | (12,102.6 | ) | — | — | 12,102.6 | — | |||||||||||||
Proceeds from disposal of property | — | 6.0 | 2.8 | — | 8.8 | ||||||||||||||
Other investing activities | — | (17.2 | ) | (1.7 | ) | 3.4 | (15.5 | ) | |||||||||||
Net cash provided (used) | 138.5 | (429.9 | ) | (255.2 | ) | (134.5 | ) | (681.1 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from short-term borrowings | 12,102.6 | — | — | — | 12,102.6 | ||||||||||||||
Repayment of short-term borrowings | (11,943.6 | ) | — | — | — | (11,943.6 | ) | ||||||||||||
Repayment of long-term debt | — | (3.6 | ) | (21.8 | ) | — | (25.4 | ) | |||||||||||
Dividends paid | (142.5 | ) | — | (12.5 | ) | 12.5 | (142.5 | ) | |||||||||||
Shares repurchased | (375.6 | ) | — | — | — | (375.6 | ) | ||||||||||||
Proceeds from loans from affiliates | — | 12,102.6 | — | (12,102.6 | ) | — | |||||||||||||
Repayment of loans from affiliates | — | (12,241.7 | ) | — | 12,241.7 | — | |||||||||||||
Contributions from affiliates | — | 0.6 | 0.6 | (1.2 | ) | — | |||||||||||||
Other financing activities | 0.7 | — | — | — | 0.7 | ||||||||||||||
Net cash used | (358.4 | ) | (142.1 | ) | (33.7 | ) | 150.4 | (383.8 | ) | ||||||||||
Cash and cash equivalents: | |||||||||||||||||||
Net increase (decrease) | 0.5 | (15.0 | ) | (22.0 | ) | — | (36.5 | ) | |||||||||||
At beginning of year | 0.2 | 32.6 | 137.8 | — | 170.6 | ||||||||||||||
At end of year | $ | 0.7 | $ | 17.6 | $ | 115.8 | $ | — | $ | 134.1 |
2016 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Operating activities: | |||||||||||||||||||
Net cash provided | $ | 434.1 | $ | 236.0 | $ | 482.7 | $ | (233.8 | ) | $ | 919.0 | ||||||||
Investing activities: | |||||||||||||||||||
Capital expenditures | — | (372.8 | ) | (190.8 | ) | — | (563.6 | ) | |||||||||||
Purchase or replacement of equipment under operating leases | — | (26.6 | ) | — | — | (26.6 | ) | ||||||||||||
Property investments in MSLLC | — | — | (33.1 | ) | — | (33.1 | ) | ||||||||||||
Investments in and advances to affiliates | (153.4 | ) | (6.5 | ) | (0.9 | ) | 159.9 | (0.9 | ) | ||||||||||
Proceeds from repayment of loans to affiliates | 9,067.7 | — | — | (9,067.7 | ) | — | |||||||||||||
Loans to affiliates | (9,123.4 | ) | — | — | 9,123.4 | — | |||||||||||||
Proceeds from disposal of property | — | 2.0 | 3.1 | (0.1 | ) | 5.0 | |||||||||||||
Other investing activities | — | (14.9 | ) | 3.9 | 2.0 | (9.0 | ) | ||||||||||||
Net cash used | (209.1 | ) | (418.8 | ) | (217.8 | ) | 217.5 | (628.2 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from short-term borrowings | 8,698.7 | 243.5 | — | (243.5 | ) | 8,698.7 | |||||||||||||
Repayment of short-term borrowings | (8,597.9 | ) | (243.5 | ) | — | 243.5 | (8,597.9 | ) | |||||||||||
Proceeds from issuance of long-term debt | 248.7 | — | — | — | 248.7 | ||||||||||||||
Repayment of long-term debt | (244.8 | ) | (3.5 | ) | (28.1 | ) | — | (276.4 | ) | ||||||||||
Dividends paid | (142.8 | ) | — | (230.2 | ) | 230.2 | (142.8 | ) | |||||||||||
Shares repurchased | (185.4 | ) | — | — | — | (185.4 | ) | ||||||||||||
Proceeds from loans from affiliates | — | 8,879.9 | — | (8,879.9 | ) | — | |||||||||||||
Repayment of loans from affiliates | — | (8,824.2 | ) | — | 8,824.2 | — | |||||||||||||
Contribution from affiliates | — | 153.1 | 6.8 | (159.9 | ) | — | |||||||||||||
Other financing activities | (1.5 | ) | (0.1 | ) | (1.8 | ) | 1.7 | (1.7 | ) | ||||||||||
Net cash provided (used) | (225.0 | ) | 205.2 | (253.3 | ) | 16.3 | (256.8 | ) | |||||||||||
Cash and cash equivalents: | |||||||||||||||||||
Net increase | — | 22.4 | 11.6 | — | 34.0 | ||||||||||||||
At beginning of year | 0.2 | 10.2 | 126.2 | — | 136.6 | ||||||||||||||
At end of year | $ | 0.2 | $ | 32.6 | $ | 137.8 | $ | — | $ | 170.6 |
2015 | |||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | |||||||||||||||
Operating activities: | |||||||||||||||||||
Net cash provided | $ | 45.2 | $ | 356.6 | $ | 526.0 | $ | (18.6 | ) | $ | 909.2 | ||||||||
Investing activities: | |||||||||||||||||||
Capital expenditures | — | (382.8 | ) | (305.2 | ) | — | (688.0 | ) | |||||||||||
Purchase or replacement of equipment under operating leases | — | (82.8 | ) | (61.4 | ) | — | (144.2 | ) | |||||||||||
Property investments in MSLLC | — | — | (17.4 | ) | — | (17.4 | ) | ||||||||||||
Investments in and advances to affiliates | (0.7 | ) | (0.7 | ) | (0.7 | ) | 1.4 | (0.7 | ) | ||||||||||
Proceeds from repayment of loans to affiliates | 293.9 | — | — | (293.9 | ) | — | |||||||||||||
Loans to affiliates | (80.0 | ) | — | — | 80.0 | — | |||||||||||||
Proceeds from disposal of property | — | 1.3 | 3.6 | (0.3 | ) | 4.6 | |||||||||||||
Other investing activities | (0.1 | ) | (32.0 | ) | 3.6 | 1.2 | (27.3 | ) | |||||||||||
Net cash provided (used) | 213.1 | (497.0 | ) | (377.5 | ) | (211.6 | ) | (873.0 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from short-term borrowings | 80.0 | 10,786.2 | — | — | 10,866.2 | ||||||||||||||
Repayment of short-term borrowings | — | (10,937.3 | ) | (300.0 | ) | — | (11,237.3 | ) | |||||||||||
Proceeds from issuance of long-term debt | — | 663.7 | 40.0 | (80.0 | ) | 623.7 | |||||||||||||
Repayment of long-term debt | — | (88.4 | ) | (61.4 | ) | — | (149.8 | ) | |||||||||||
Dividends paid | (140.1 | ) | — | (17.8 | ) | 17.8 | (140.1 | ) | |||||||||||
Shares repurchased | (194.2 | ) | — | — | — | (194.2 | ) | ||||||||||||
Repayment of loans from affiliates | — | (293.9 | ) | — | 293.9 | — | |||||||||||||
Other financing activities | (4.0 | ) | (9.2 | ) | (1.4 | ) | (1.5 | ) | (16.1 | ) | |||||||||
Net cash provided (used) | (258.3 | ) | 121.1 | (340.6 | ) | 230.2 | (247.6 | ) | |||||||||||
Cash and cash equivalents: | |||||||||||||||||||
Net decrease | — | (19.3 | ) | (192.1 | ) | — | (211.4 | ) | |||||||||||
At beginning of year | 0.2 | 29.5 | 318.3 | — | 348.0 | ||||||||||||||
At end of year | $ | 0.2 | $ | 10.2 | $ | 126.2 | $ | — | $ | 136.6 |
2017 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Revenues | $ | — | $ | 1,220.8 | $ | 43.5 | $ | 1,359.0 | $ | (40.4 | ) | $ | 2,582.9 | ||||||||||
Operating expenses | 5.7 | 862.8 | 39.1 | 791.0 | (37.3 | ) | 1,661.3 | ||||||||||||||||
Operating income (loss) | (5.7 | ) | 358.0 | 4.4 | 568.0 | (3.1 | ) | 921.6 | |||||||||||||||
Equity in net earnings of affiliates | 974.8 | 19.0 | 4.5 | 9.6 | (996.4 | ) | 11.5 | ||||||||||||||||
Interest expense | (81.3 | ) | (72.2 | ) | — | (34.4 | ) | 87.7 | (100.2 | ) | |||||||||||||
Debt retirement and exchange costs | — | — | — | — | — | — | |||||||||||||||||
Foreign exchange gain | — | — | — | 41.7 | — | 41.7 | |||||||||||||||||
Other income (expense), net | 86.7 | (0.6 | ) | — | 1.2 | (87.6 | ) | (0.3 | ) | ||||||||||||||
Income before income taxes | 974.5 | 304.2 | 8.9 | 586.1 | (999.4 | ) | 874.3 | ||||||||||||||||
Income tax expense (benefit) | 9.9 | (310.6 | ) | (42.5 | ) | 254.2 | (0.6 | ) | (89.6 | ) | |||||||||||||
Net income | 964.6 | 614.8 | 51.4 | 331.9 | (998.8 | ) | 963.9 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | 1.9 | — | 1.9 | |||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 964.6 | 614.8 | 51.4 | 330.0 | (998.8 | ) | 962.0 | ||||||||||||||||
Other comprehensive income (loss) | (6.7 | ) | — | — | 0.5 | (0.5 | ) | (6.7 | ) | ||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 957.9 | $ | 614.8 | $ | 51.4 | $ | 330.5 | $ | (999.3 | ) | $ | 955.3 |
2016 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Revenues | $ | — | $ | 1,077.3 | $ | 43.7 | $ | 1,252.5 | $ | (39.3 | ) | $ | 2,334.2 | ||||||||||
Operating expenses | 4.7 | 776.3 | 38.1 | 734.0 | (37.4 | ) | 1,515.7 | ||||||||||||||||
Operating income (loss) | (4.7 | ) | 301.0 | 5.6 | 518.5 | (1.9 | ) | 818.5 | |||||||||||||||
Equity in net earnings (losses) of affiliates | 468.5 | (0.2 | ) | 3.5 | 12.7 | (469.9 | ) | 14.6 | |||||||||||||||
Interest expense | (81.9 | ) | (83.0 | ) | — | (63.1 | ) | 130.3 | (97.7 | ) | |||||||||||||
Debt retirement and exchange costs | — | — | — | — | — | — | |||||||||||||||||
Foreign exchange loss | — | — | — | (72.0 | ) | — | (72.0 | ) | |||||||||||||||
Other income (expense), net | 104.4 | (0.2 | ) | — | 24.1 | (129.0 | ) | (0.7 | ) | ||||||||||||||
Income before income taxes | 486.3 | 217.6 | 9.1 | 420.2 | (470.5 | ) | 662.7 | ||||||||||||||||
Income tax expense | 7.1 | 84.3 | 3.1 | 89.2 | (0.9 | ) | 182.8 | ||||||||||||||||
Net income | 479.2 | 133.3 | 6.0 | 331.0 | (469.6 | ) | 479.9 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | 1.8 | — | 1.8 | |||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 479.2 | 133.3 | 6.0 | 329.2 | (469.6 | ) | 478.1 | ||||||||||||||||
Other comprehensive loss | (1.5 | ) | — | — | (2.5 | ) | 2.5 | (1.5 | ) | ||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 477.7 | $ | 133.3 | $ | 6.0 | $ | 326.7 | $ | (467.1 | ) | $ | 476.6 |
2015 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Revenues | $ | — | $ | 1,112.5 | $ | 42.1 | $ | 1,302.3 | $ | (38.1 | ) | $ | 2,418.8 | ||||||||||
Operating expenses | 4.6 | 760.4 | 38.0 | 849.3 | (37.3 | ) | 1,615.0 | ||||||||||||||||
Operating income (loss) | (4.6 | ) | 352.1 | 4.1 | 453.0 | (0.8 | ) | 803.8 | |||||||||||||||
Equity in net earnings (losses) of affiliates | 464.0 | (1.4 | ) | 3.7 | 16.5 | (464.5 | ) | 18.3 | |||||||||||||||
Interest expense | (4.6 | ) | (84.8 | ) | (0.1 | ) | (40.1 | ) | 47.7 | (81.9 | ) | ||||||||||||
Debt retirement and exchange costs | 0.1 | (5.2 | ) | — | (2.5 | ) | — | (7.6 | ) | ||||||||||||||
Foreign exchange loss | — | — | — | (56.6 | ) | — | (56.6 | ) | |||||||||||||||
Other income (expense), net | 45.9 | (3.2 | ) | 0.1 | 1.4 | (47.6 | ) | (3.4 | ) | ||||||||||||||
Income before income taxes | 500.8 | 257.5 | 7.8 | 371.7 | (465.2 | ) | 672.6 | ||||||||||||||||
Income tax expense | 16.5 | 95.2 | 3.1 | 72.5 | — | 187.3 | |||||||||||||||||
Net income | 484.3 | 162.3 | 4.7 | 299.2 | (465.2 | ) | 485.3 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | 1.8 | — | 1.8 | |||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 484.3 | 162.3 | 4.7 | 297.4 | (465.2 | ) | 483.5 | ||||||||||||||||
Other comprehensive loss | (1.5 | ) | — | — | (2.2 | ) | 2.2 | (1.5 | ) | ||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 482.8 | $ | 162.3 | $ | 4.7 | $ | 295.2 | $ | (463.0 | ) | $ | 482.0 |
December 31, 2017 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Current assets | $ | 292.0 | $ | 214.1 | $ | 8.8 | $ | 475.5 | $ | (310.3 | ) | $ | 680.1 | ||||||||||
Investments | — | 3.9 | — | 40.7 | — | 44.6 | |||||||||||||||||
Investments in consolidated subsidiaries | 4,462.4 | 7.4 | 182.2 | — | (4,652.0 | ) | — | ||||||||||||||||
Property and equipment (including concession assets), net | — | 4,283.2 | 171.6 | 3,954.9 | (5.9 | ) | 8,403.8 | ||||||||||||||||
Other assets | 2,159.6 | 46.8 | — | 252.5 | (2,388.7 | ) | 70.2 | ||||||||||||||||
Total assets | $ | 6,914.0 | $ | 4,555.4 | $ | 362.6 | $ | 4,723.6 | $ | (7,356.9 | ) | $ | 9,198.7 | ||||||||||
Liabilities and equity: | |||||||||||||||||||||||
Current liabilities | $ | 277.9 | $ | 578.7 | $ | 94.9 | $ | 332.0 | $ | (311.8 | ) | $ | 971.7 | ||||||||||
Long-term debt | 2,066.8 | 1,517.2 | — | 1,040.3 | (2,388.8 | ) | 2,235.5 | ||||||||||||||||
Deferred income taxes | (7.1 | ) | 734.8 | 84.0 | 177.0 | (1.5 | ) | 987.2 | |||||||||||||||
Other liabilities | 13.5 | 70.0 | 0.3 | 55.1 | — | 138.9 | |||||||||||||||||
Stockholders’ equity | 4,562.9 | 1,654.7 | 183.4 | 2,802.7 | (4,654.8 | ) | 4,548.9 | ||||||||||||||||
Noncontrolling interest | — | — | — | 316.5 | — | 316.5 | |||||||||||||||||
Total liabilities and equity | $ | 6,914.0 | $ | 4,555.4 | $ | 362.6 | $ | 4,723.6 | $ | (7,356.9 | ) | $ | 9,198.7 |
December 31, 2016 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Current assets | $ | 18.3 | $ | 271.8 | $ | 4.6 | $ | 389.6 | $ | (36.3 | ) | $ | 648.0 | ||||||||||
Investments | — | 3.9 | — | 29.0 | — | 32.9 | |||||||||||||||||
Investments in consolidated subsidiaries | 3,497.7 | (9.8 | ) | 177.1 | — | (3,665.0 | ) | — | |||||||||||||||
Property and equipment (including concession assets), net | — | 4,024.5 | 179.1 | 3,868.8 | (2.7 | ) | 8,069.7 | ||||||||||||||||
Other assets | 2,767.9 | 43.0 | — | 252.6 | (2,996.6 | ) | 66.9 | ||||||||||||||||
Total assets | $ | 6,283.9 | $ | 4,333.4 | $ | 360.8 | $ | 4,540.0 | $ | (6,700.6 | ) | $ | 8,817.5 | ||||||||||
Liabilities and equity: | |||||||||||||||||||||||
Current liabilities | $ | 87.3 | $ | 342.1 | $ | 91.7 | $ | 261.0 | $ | (37.7 | ) | $ | 744.4 | ||||||||||
Long-term debt | 2,064.3 | 1,928.8 | 0.1 | 1,274.9 | (2,996.6 | ) | 2,271.5 | ||||||||||||||||
Deferred income taxes | 26.9 | 937.7 | 137.6 | 188.0 | (0.9 | ) | 1,289.3 | ||||||||||||||||
Other liabilities | 4.0 | 86.2 | 0.1 | 17.5 | — | 107.8 | |||||||||||||||||
Stockholders’ equity | 4,101.4 | 1,038.6 | 131.3 | 2,484.0 | (3,665.4 | ) | 4,089.9 | ||||||||||||||||
Noncontrolling interest | — | — | — | 314.6 | — | 314.6 | |||||||||||||||||
Total liabilities and equity | $ | 6,283.9 | $ | 4,333.4 | $ | 360.8 | $ | 4,540.0 | $ | (6,700.6 | ) | $ | 8,817.5 |
2017 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net cash provided | $ | 220.4 | $ | 556.6 | $ | 0.4 | $ | 266.9 | $ | (15.9 | ) | $ | 1,028.4 | ||||||||||
Investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (375.2 | ) | (0.3 | ) | (209.9 | ) | — | (585.4 | ) | |||||||||||||
Purchase or replacement of equipment under operating leases | — | (42.6 | ) | — | — | — | (42.6 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (26.0 | ) | — | (26.0 | ) | |||||||||||||||
Investments in and advances to affiliates | (0.6 | ) | — | (0.6 | ) | (20.4 | ) | 1.2 | (20.4 | ) | |||||||||||||
Proceeds from repayment of loans to affiliates | 12,241.7 | — | — | — | (12,241.7 | ) | — | ||||||||||||||||
Loans to affiliates | (12,102.6 | ) | — | — | — | 12,102.6 | — | ||||||||||||||||
Proceeds from disposal of property | — | 6.0 | — | 2.8 | — | 8.8 | |||||||||||||||||
Other investing activities | — | (17.2 | ) | — | (1.7 | ) | 3.4 | (15.5 | ) | ||||||||||||||
Net cash provided (used) | 138.5 | (429.0 | ) | (0.9 | ) | (255.2 | ) | (134.5 | ) | (681.1 | ) | ||||||||||||
Financing activities: | |||||||||||||||||||||||
Proceeds from short-term borrowings | 12,102.6 | — | — | — | — | 12,102.6 | |||||||||||||||||
Repayment of short-term borrowings | (11,943.6 | ) | — | — | — | — | (11,943.6 | ) | |||||||||||||||
Repayment of long-term debt | — | (3.5 | ) | (0.1 | ) | (21.8 | ) | — | (25.4 | ) | |||||||||||||
Dividends paid | (142.5 | ) | — | — | (12.5 | ) | 12.5 | (142.5 | ) | ||||||||||||||
Shares repurchased | (375.6 | ) | — | — | — | — | (375.6 | ) | |||||||||||||||
Proceeds from loans from affiliates | — | 12,102.6 | — | — | (12,102.6 | ) | — | ||||||||||||||||
Repayment of loans from affiliates | — | (12,241.7 | ) | — | — | 12,241.7 | — | ||||||||||||||||
Contributions from affiliates | — | — | 0.6 | 0.6 | (1.2 | ) | — | ||||||||||||||||
Other financing activities | 0.7 | — | — | — | — | 0.7 | |||||||||||||||||
Net cash provided (used) | (358.4 | ) | (142.6 | ) | 0.5 | (33.7 | ) | 150.4 | (383.8 | ) | |||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Net increase (decrease) | 0.5 | (15.0 | ) | — | (22.0 | ) | — | (36.5 | ) | ||||||||||||||
At beginning of year | 0.2 | 32.6 | — | 137.8 | — | 170.6 | |||||||||||||||||
At end of year | $ | 0.7 | $ | 17.6 | $ | — | $ | 115.8 | $ | — | $ | 134.1 |
2016 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net cash provided | $ | 434.1 | $ | 235.4 | $ | 0.6 | $ | 482.7 | $ | (233.8 | ) | $ | 919.0 | ||||||||||
Investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (372.2 | ) | (0.6 | ) | (190.8 | ) | — | (563.6 | ) | |||||||||||||
Purchase or replacement of equipment under operating leases | — | (26.6 | ) | — | — | — | (26.6 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (33.1 | ) | — | (33.1 | ) | |||||||||||||||
Investments in and advances to affiliates | (153.4 | ) | — | (6.5 | ) | (0.9 | ) | 159.9 | (0.9 | ) | |||||||||||||
Proceeds from repayment of loans to affiliates | 9,067.7 | — | — | — | (9,067.7 | ) | — | ||||||||||||||||
Loans to affiliates | (9,123.4 | ) | — | — | — | 9,123.4 | — | ||||||||||||||||
Proceeds from disposal of property | — | 2.0 | — | 3.1 | (0.1 | ) | 5.0 | ||||||||||||||||
Other investing activities | — | (14.9 | ) | — | 3.9 | 2.0 | (9.0 | ) | |||||||||||||||
Net cash used | (209.1 | ) | (411.7 | ) | (7.1 | ) | (217.8 | ) | 217.5 | (628.2 | ) | ||||||||||||
Financing activities: | |||||||||||||||||||||||
Proceeds from short-term borrowings | 8,698.7 | 243.5 | — | — | (243.5 | ) | 8,698.7 | ||||||||||||||||
Repayment of short-term borrowings | (8,597.9 | ) | (243.5 | ) | — | — | 243.5 | (8,597.9 | ) | ||||||||||||||
Proceeds from issuance of long-term debt | 248.7 | — | — | — | — | 248.7 | |||||||||||||||||
Repayment of long-term debt | (244.8 | ) | (3.4 | ) | (0.1 | ) | (28.1 | ) | — | (276.4 | ) | ||||||||||||
Dividends paid | (142.8 | ) | — | — | (230.2 | ) | 230.2 | (142.8 | ) | ||||||||||||||
Shares repurchased | (185.4 | ) | — | — | — | — | (185.4 | ) | |||||||||||||||
Proceeds from loans from affiliates | — | 8,879.9 | — | — | (8,879.9 | ) | — | ||||||||||||||||
Repayment of loans from affiliates | — | (8,824.2 | ) | — | — | 8,824.2 | — | ||||||||||||||||
Contribution from affiliates | — | 146.6 | 6.5 | 6.8 | (159.9 | ) | — | ||||||||||||||||
Other financing activities | (1.5 | ) | (0.1 | ) | — | (1.8 | ) | 1.7 | (1.7 | ) | |||||||||||||
Net cash provided (used) | (225.0 | ) | 198.8 | 6.4 | (253.3 | ) | 16.3 | (256.8 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Net increase (decrease) | — | 22.5 | (0.1 | ) | 11.6 | — | 34.0 | ||||||||||||||||
At beginning of year | 0.2 | 10.1 | 0.1 | 126.2 | — | 136.6 | |||||||||||||||||
At end of year | $ | 0.2 | $ | 32.6 | $ | — | $ | 137.8 | $ | — | $ | 170.6 |
2015 | |||||||||||||||||||||||
Parent | KCSR | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated KCS | ||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net cash provided | $ | 45.2 | $ | 355.6 | $ | 1.0 | $ | 526.0 | $ | (18.6 | ) | $ | 909.2 | ||||||||||
Investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (381.5 | ) | (1.3 | ) | (305.2 | ) | — | (688.0 | ) | |||||||||||||
Purchase or replacement of equipment under operating leases | — | (82.8 | ) | — | (61.4 | ) | — | (144.2 | ) | ||||||||||||||
Property investments in MSLLC | — | — | — | (17.4 | ) | — | (17.4 | ) | |||||||||||||||
Investments in and advances to affiliates | (0.7 | ) | — | (0.7 | ) | (0.7 | ) | 1.4 | (0.7 | ) | |||||||||||||
Proceeds from repayment of loans to affiliates | 293.9 | — | — | — | (293.9 | ) | — | ||||||||||||||||
Loans to affiliates | (80.0 | ) | — | — | — | 80.0 | — | ||||||||||||||||
Proceeds from disposal of property | — | 1.3 | — | 3.6 | (0.3 | ) | 4.6 | ||||||||||||||||
Other investing activities | (0.1 | ) | (32.0 | ) | — | 3.6 | 1.2 | (27.3 | ) | ||||||||||||||
Net cash provided (used) | 213.1 | (495.0 | ) | (2.0 | ) | (377.5 | ) | (211.6 | ) | (873.0 | ) | ||||||||||||
Financing activities: | |||||||||||||||||||||||
Proceeds from short-term borrowings | 80.0 | 10,786.2 | — | — | — | 10,866.2 | |||||||||||||||||
Repayment of short-term borrowings | — | (10,937.3 | ) | — | (300.0 | ) | — | (11,237.3 | ) | ||||||||||||||
Proceeds from issuance of long-term debt | — | 663.7 | — | 40.0 | (80.0 | ) | 623.7 | ||||||||||||||||
Repayment of long-term debt | — | (88.3 | ) | (0.1 | ) | (61.4 | ) | — | (149.8 | ) | |||||||||||||
Dividends paid | (140.1 | ) | — | — | (17.8 | ) | 17.8 | (140.1 | ) | ||||||||||||||
Shares repurchased | (194.2 | ) | — | — | — | — | (194.2 | ) | |||||||||||||||
Repayment of loans from affiliates | — | (293.9 | ) | — | — | 293.9 | — | ||||||||||||||||
Other financing activities | (4.0 | ) | (9.9 | ) | 0.7 | (1.4 | ) | (1.5 | ) | (16.1 | ) | ||||||||||||
Net cash provided (used) | (258.3 | ) | 120.5 | 0.6 | (340.6 | ) | 230.2 | (247.6 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Net decrease | — | (18.9 | ) | (0.4 | ) | (192.1 | ) | — | (211.4 | ) | |||||||||||||
At beginning of year | 0.2 | 29.0 | 0.5 | 318.3 | — | 348.0 | |||||||||||||||||
At end of year | $ | 0.2 | $ | 10.1 | $ | 0.1 | $ | 126.2 | $ | — | $ | 136.6 |
Environmental • Rail transportation is the most energy efficient way to move freight over land. In 2021, KCS moved each ton of freight approximately 419 miles on average on only one gallon of fuel. • KCS provides a carbon calculator to its customers on its website to estimate the greenhouse gas emission savings potential associated with shipping by rail vs. truck. • In 2021, KCS committed to a science-based carbon emissions reduction target approved by the Science Based Targets Initiative. KCS will reduce Scope 1 and 2 carbon emissions by at least 42% per million gross ton-miles by 2034, compared to 2019, the base year.• To optimize our fuel efficiency, KCS’s fuel conservation team drives fuel conservation and efficiency initiatives by: • Implementing strategies to improve fuel efficiency, including multiple fuel saving technologies in our locomotives • Managing horsepower-per-ton • Forecasting fuel consumption and providing monthly goals and reports with recommendations • Analyzing fuel burn and efficiency data to identify opportunities and trends • Managing vendor and program compliance • In 2021, KCS avoided the use of 25.7M gallons of diesel fuel which would be 17.0% of our annual fuel consumption if these fuel conservation and efficiency initiatives were not implemented. • KCS is committed to reducing plastic waste in the environment and continues to uphold its pledge to Operation Clean Sweep a campaign by the Plastic Industry Association and American Chemistry Council’s Plastics Division by stewarding its best management practices within our organization and with our partners. |
Safety • The consolidated 2021 rate of reportable workplace injuries and illnesses decreased by 6% from 2020. • The KCS Health, Safety, Security & Environmental Management System covers 100% of operations. • KCS has been a Responsible Care Partner since 1999. • KCS had the best-in-class • The consolidated 2021 rate of reportable train accidents decreased by 13% from 2020; total train accidents decreased by 22% |
Item 11. | Executive Compensation |
Current NEOs | ||
President and Chief Executive Officer | ||
Michael W. Upchurch | Executive | |
Jeffrey M. Songer | Executive Vice President and Chief Operating Officer |
Michael J. Naatz | Executive Vice President and Chief Marketing Officer | |
Adam J. Godderz | Senior Vice President - Chief Legal Officer and Corporate Secretary | |
Brian D. Hancock | Former Executive Vice President and Chief Innovation Officer* |
* | Mr. Hancock retired from the Company on July 2, 2021. |
Compensation Element | Purpose | Characteristic | ||
Base Salary | To provide a fixed element of pay for an individual’s primary duties and responsibilities. | Base salaries are reviewed annually and are set based on performance, experience, competitiveness versus market and internal equity considerations. | ||
Annual Incentive | To encourage and reward the achievement of specified financial and operational goals on an annual basis. | Performance-based cash award opportunity; amount earned is based on actual results relative to pre-determined goals. | ||
Long-Term Incentives | ||||
Performance Share Awards | To motivate management for long-term financial success and value creation for stockholders. | Three-year performance-based share awards with pre-determined financial goals. | ||
Restricted Share Awards | To align the executives’ interests with those of investors (via creation of stockholder value), to encourage stock ownership and to provide an incentive for retention. | Service-based long-term incentive opportunity; ultimate award value depends on share price. |
Compensation Element | Purpose | Characteristic | ||
Non-Qualified Stock Options | To incentivize and reward the creation of long-term stockholder value. | Service-based long-term incentive opportunity; amounts realized are dependent upon share price appreciation. |
Pay Mix | ||||||||
CEO | Other NEOs | |||||||
Base Salary | 15 | % | 28 | % | ||||
Short - Term Incentive | 17 | % | 21 | % | ||||
Stock Options | 17 | % | 13 | % | ||||
Performance Shares | 34 | % | 25 | % | ||||
Restricted Stock | 17 | % | 13 | % | ||||
Total | 100 | % | 100 | % | ||||
Multiple of Base Salary | ||
Chief Executive Officer | 5X | |
Other NEOs | 3X |
A. O. Smith Corporation | ITT Inc. | |
Alliant Energy Corporation | Kennametal Inc. | |
Atmos Energy Corporation | Marathon Oil Company | |
Canadian Pacific Railway | Martin Marietta Materials, Inc. | |
CF Industries Holdings, Inc. | OGE Energy Corp. | |
Curtiss-Wright Corporation | Pinnacle West Capital Corporation | |
EQT Corporation | Snap-on Incorporated | |
Evergy, Inc. | Southwest Gas Holdings, Inc. | |
Flowserve Corporation | The Timken Company | |
GATX Corporation | Trinity Industries, Inc. | |
Hexcel Corporation | Vulcan Materials Company | |
IDEX Corporation |
Percentage of Base Salary | ||||||||||||
Current Officers | Threshold Performance Level | Target Performance Level | Maximum Performance Level | |||||||||
Mr. Ottensmeyer | 0 | % | 115 | % | 230 | % | ||||||
Mr. Upchurch | 0 | % | 75 | % | 150 | % | ||||||
Mr. Songer | 0 | % | 80 | % | 160 | % | ||||||
Mr. Naatz | 0 | % | 70 | % | 140 | % |
Percentage of Base Salary | ||||||||||||
Current Officers | Threshold Performance Level | Target Performance Level | Maximum Performance Level | |||||||||
Mr. Godderz | 0 | % | 65 | % | 130 | % | ||||||
Mr. Hancock | 0 | % | 70 | % | 140 | % |
OR | OCF | Operational Objectives | ||||||||||||||||||
TPC | Safety | |||||||||||||||||||
IFR | AFR | |||||||||||||||||||
Ottensmeyer | 40 | % | 40 | % | 10 | % | 5 | % | 5 | % | ||||||||||
Upchurch | 45 | % | 45 | % | 5 | % | 2.5 | % | 2.5 | % | ||||||||||
Songer | 40 | % | 40 | % | 10 | % | 5 | % | 5 | % | ||||||||||
Naatz | 45 | % | 45 | % | 5 | % | 2.5 | % | 2.5 | % | ||||||||||
Godderz | 45 | % | 45 | % | 5 | % | 2.5 | % | 2.5 | % | ||||||||||
Hancock | 45 | % | 45 | % | 5 | % | 2.5 | % | 2.5 | % |
Threshold (0% Payout) | Target (100% Payout) | Maximum (200% Payout) | ||||||||||
OR | 62.15 | % | 59.15% - 59.65 | % | 56.90 | % | ||||||
OCF (in millions) | $ | 854 | $ | 1,024 - $1,057 | $ | 1,187 | ||||||
TPC | <60.26 | % | 60.26% - 63.13 | % | >63.13 | % | ||||||
IFR | >1.62 | 1.62 | 1.44 | |||||||||
AFR | >3.35 | 3.35 | 2.97 |
Rank | Adjustment to Payout Percentage | |||
1 st | 120 | % | ||
2 nd | 110 | % | ||
2 nd to last place (6th ) | 90 | % | ||
Last place (7 th ) | 80 | % | ||
Any other ranking (3 rd , 4th , or 5th ) | No adjustment |
2021 Results | ||||
OR | 60.28 | % | ||
OCF (in millions) | $ | 1,032 | ||
TPC | 63.12 | % | ||
IFR | 1.71 | |||
AFR | 3.24 |
Performance Shares | 50 | % | ||
Stock Options | 25 | % | ||
Restricted Stock | 25 | % |
Current Officers | Number of Target Performance Shares Granted Under the 2021 LTI Program | Number of Non-Incentive Stock Options Granted Under the 2021 LTI Program | Number of Shares of Restricted Stock Granted Under the 2021 LTI Program | |||||||||
Mr. Ottensmeyer | 11,369 | 20,429 | 5,685 | |||||||||
Mr. Upchurch | 2,821 | 5,069 | 1,410 | |||||||||
Mr. Songer* | 2,399 | 4,311 | 3,568 | |||||||||
Mr. Naatz | 2,271 | 4,082 | 1,136 | |||||||||
Mr. Godderz | 1,516 | 2,724 | 758 | |||||||||
Mr. Hancock | 2,271 | 4,082 | 1,136 |
* | Mr. Songer received a one-time $500,000 increase in his restricted stock award value in recognition of his continuing role in leading the Company’s ongoing Precision Scheduled Railroading strategy and to ensure his retention during the negotiations and potential acquisition of the Company. |
Rank | Adjustment to Payout Percentage | |||
1 st | 120 | % | ||
2 nd | 110 | % | ||
2 nd to last place (6th ) | 90 | % | ||
Last place (7 th ) | 80 | % | ||
Any other ranking (3 rd , 4th , or 5th ) | No adjustment |
Performance Level | Return on Invested Capital (75% weight) | Consolidated Operating Ratio (25% weight) | Percentage Payout of Total Incentive Target | |||||||||
2021 | ||||||||||||
Threshold | 8.19% | 62.15% | 0% | |||||||||
Target | 9.77% - 10.09% | 59.15% - 59.65% | 100% | |||||||||
Maximum | 12.150% | 56.90% | 200% | |||||||||
2022 | ||||||||||||
Threshold | -120 bp change (1) | +200 bp change (1) | 0% | |||||||||
Target | +10 bp to +20 bp change (1) | -20 bp to -50 bp change (1) | 100% | |||||||||
Maximum | +50 bp change (1) | -100 bp change (1) | 200% | |||||||||
2023 | ||||||||||||
Threshold | -120 bp change (1) | +200 bp change (1) | 0% | |||||||||
Target | +10 bp to +20 bp change (1) | -20 bp to -50 bp change (1) | 100% | |||||||||
Maximum | +50 bp change (1) | -100 bp change (1) | 200% |
(1) | Based on the immediately preceding year’s actual results. |
* | These performance levels should not be viewed as predictions or estimates of future performance and the actual achievement of these levels is subject to numerous known and unknown risks and uncertainties including, without limitation, those described under “forward looking statements”, “risk factors” or similar headings in our quarterly and annual reports filed with the SEC. The Compensation Committee establishes these levels solely to help it align pay with performance. The levels are not intended to provide investors or any other party with guidance about our future financial performance or operating results. |
2019 LTI Program (Vest Date – 02/25/2022) | 2020 LTI Program (Vest Date – 02/24/2023) | 2021 LTI Program (Vest Date – 02/23/2024) | ||||||||||
Ottensmeyer | $ | 9,304,068.00 | $ | 7,619,155.20 | $ | 6,848,685.60 | ||||||
Upchurch | $ | 2,078,280.00 | $ | 1,775,272.80 | $ | 1,699,370.40 | ||||||
Songer | $ | 2,051,172.00 | $ | 1,775,272.80 | $ | 1,445,157.60 | ||||||
Naatz | $ | 1,983,100.80 | $ | 1,680,696.00 | $ | 1,368,050.40 | ||||||
Godderz | $ | 1,017,453.60 | $ | 942,756.00 | $ | 913,238.40 | ||||||
Hancock (1) | N/A | N/A | N/A |
(1) | Mr. Hancock’s awards were forfeited upon his retirement from the Company on July 2, 2021. |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($)(1) | Option Awards ($)(2) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($)(3) | Total ($) | ||||||||||||||||||||||||
Patrick J. Ottensmeyer President and Chief Executive Officer | | 2021 2020 2019 | | $ $ $ | 1,051,250 983,333 971,691 | | $ $ $ | 530,000 0 0 | | $ $ $ | 3,859,541 3,566,267 2,733,648 | | $ $ $ | 1,199,999 1,086,895 850,501 | | $ $ $ | 1,324,628 1,376,677 1,752,931 | | $ $ $ | 202,765 122,740 71,641 | | $ $ $ | 8,168,183 7,135,912 6,380,412 | | ||||||||
Michael W. Upchurch Executive Vice President and Chief Financial Officer | | 2021 2020 2019 | | $ $ $ | 536,250 509,428 501,641 | | $ $ $ | 420,500 0 0 | | $ $ $ | 977,182 859,644 631,971 | | $ $ $ | 297,753 253,253 190,014 | | $ $ $ | 447,747 446,108 575,884 | | $ $ $ | 61,300 62,492 61,602 | | $ $ $ | 2,740,732 2,130,925 1,961,112 | | ||||||||
Jeffrey M. Songer Executive Vice President and Chief Operating Officer | | 2021 2020 2019 | | $ $ $ | 534,000 510,076 505,159 | | $ $ $ | 269,000 0 0 | | $ $ $ | 1,343,652 860,503 625,818 | | $ $ $ | 253,228 253,253 187,494 | | $ $ $ | 464,633 446,666 579,922 | | $ $ $ | 54,817 62,197 63,791 | | $ $ $ | 2,919,330 2,132,695 1,962,184 | | ||||||||
Michael J. Naatz Executive Vice President and Chief Marketing Officer | | 2021 2020 2019 | | $ $ $ | 505,250 469,337 424,960 | | $ $ $ | 254,500 0 0 | | $ $ $ | 793,736 798,462 577,044 | | $ $ $ | 239,777 239,732 181,236 | | $ $ $ | 396,116 411,188 487,854 | | $ $ $ | 50,854 48,165 54,216 | | $ $ $ | 2,240,233 1,966,884 1,725,310 | | ||||||||
Adam J. Godderz Senior Vice President Chief Legal Officer and Corporate Secretary (4) | 2021 | $ | 482,500 | $ | 375,000 | $ | 537,038 | $ | 160,008 | $ | 346,396 | $ | 204,870 | $ | 2,105,812 | |||||||||||||||||
Brian D. Hancock Executive Vice President and Chief Innovation Officer (5) | | 2021 2020 2019 | | $ $ $ | 254,606 478,367 460,800 | | $ $ $ | 0 0 0 | | $ $ $ | 795,847 808,086 597,590 | | $ $ $ | 239,776 239,732 181,236 | | $ $ $ | 0 418,963 528,998 | | $ $ $ | 2,077,549 60,277 66,380 | | $ $ $ | 3,367,778 2,005,425 1,835,004 | |
(1) | This column presents the aggregate grant date fair value of stock awards made in 2021, 2020 or 2019, as applicable, computed in accordance with FASB ASC Topic 718. For additional information, refer to Note 15 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC. The amount for 2021 reflects (a) the grant date fair value for time vested stock awards under our Executive Plan and the 2021 LTI Program, and (b) the probable outcome at grant date for the performance share grant made pursuant to the 2021 LTI Program. See “Compensation Discussion and Analysis” above for more detail on these awards, the Executive Plan, the 2021 LTI Program, and the Grants of Plan-Based Awards table for the value of each grant. The value of the 2021 performance shares awards, assuming the highest level of performance achieved, would be, respectively, as follows: Mr. Ottensmeyer — $4,799,992; Mr. Upchurch — $1,191,026; Mr. Songer — $1,012,858; Mr. Naatz — $958,816; Mr. Godderz – $640,055 and Mr. Hancock — $958,816. |
(2) | This column presents the aggregate grant date fair value of option awards made in 2021, 2020 or 2019, as applicable, computed in accordance with FASB ASC topic 718. For additional information, refer to Note 15 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC. |
(3) | “All Other Compensation” for the NEOs consists of: |
Name | Year | KCS 401(K) Plan Matching Contributions ($)(a) | Group Term Life Insurance Premiums ($) | AD&D Premiums ($) | LTD Premiums ($) | Matching Charitable Gifts ($)(b) | Financial Planning Reimbursement ($) | Other ($)(c) | Total ($) | |||||||||||||||||||||||||||
Ottensmeyer | 2021 | $ | 14,500 | $ | 600 | $ | 150 | $ | 1,050 | $ | 30,000 | $ | 15,000 | $ | 141,465 | $ | 202,765 | |||||||||||||||||||
2020 | $ | 14,250 | $ | 600 | $ | 150 | $ | 1,050 | $ | 25,000 | $ | 15,945 | $ | 65,745 | $ | 122,740 | ||||||||||||||||||||
2019 | $ | 14,000 | $ | 600 | $ | 150 | $ | 1,050 | $ | 30,000 | $ | 12,071 | $ | 13,770 | $ | 71,641 | ||||||||||||||||||||
Upchurch | 2021 | $ | 14,500 | $ | 600 | $ | 150 | $ | 1,050 | $ | 30,000 | $ | 15,000 | $ | 0 | $ | 61,300 | |||||||||||||||||||
2020 | $ | 14,250 | $ | 600 | $ | 150 | $ | 1,050 | $ | 30,000 | $ | 16,442 | $ | 0 | $ | 62,492 | ||||||||||||||||||||
2019 | $ | 14,000 | $ | 600 | $ | 150 | $ | 1,050 | $ | 30,000 | $ | 15,802 | $ | 0 | $ | 61,602 | ||||||||||||||||||||
Songer | 2021 | $ | 14,500 | $ | 600 | $ | 150 | $ | 1,050 | $ | 20,000 | $ | 15,000 | $ | 3,517 | $ | 54,817 | |||||||||||||||||||
2020 | $ | 14,250 | $ | 600 | $ | 150 | $ | 1,050 | $ | 25,000 | $ | 15,183 | $ | 5,964 | $ | 62,197 | ||||||||||||||||||||
2019 | $ | 14,000 | $ | 600 | $ | 150 | $ | 1,050 | $ | 27,668 | $ | 15,288 | $ | 5,035 | $ | 63,791 | ||||||||||||||||||||
Naatz | 2021 | $ | 14,500 | $ | 600 | $ | 150 | $ | 1,050 | $ | 15,000 | $ | 15,000 | $ | 4,554 | $ | 50,854 | |||||||||||||||||||
2020 | $ | 14,250 | $ | 600 | $ | 150 | $ | 1,050 | $ | 15,000 | $ | 15,435 | $ | 1,680 | $ | 48,165 | ||||||||||||||||||||
2019 | $ | 14,000 | $ | 600 | $ | 150 | $ | 1,050 | $ | 16,400 | $ | 15,698 | $ | 6,318 | $ | 54,216 | ||||||||||||||||||||
Godderz | 2021 | $ | 14,500 | $ | 600 | $ | 150 | $ | 1,050 | $ | 17,530 | $ | 15,000 | $ | 156,040 | $ | 204,870 | |||||||||||||||||||
Hancock | 2021 | $ | 14,500 | $ | 300 | $ | 75 | $ | 525 | $ | 30,000 | $ | 7,438 | $ | 2,024,711 | $ | 2,077,549 | |||||||||||||||||||
2020 | $ | 14,250 | $ | 600 | $ | 150 | $ | 1,050 | $ | 24,000 | $ | 15,440 | $ | 4,787 | $ | 60,277 | ||||||||||||||||||||
2019 | $ | 14,000 | $ | 600 | $ | 150 | $ | 1,050 | $ | 30,000 | $ | 15,288 | $ | 5,292 | $ | 66,380 |
(a) | Subject to Internal Revenue Service rules, we match 100% of each employee’s elective 401(k) contributions, which do not exceed 5% of his or her compensation. For 2021, the maximum match was $14,500. |
(b) | We provide a two-for-one |
(c) | Amounts in this column for 2021 include: Mr. Ottensmeyer — $138,935 for personal use of the Company’s aircraft (calculated as the incremental cost to the Company of such use) and $2,530 for an annual physical exam; Mr. Songer — $2,250 for an annual physical exam, $547 for a wellness reimbursement, and $720 for a cell phone allowance; Mr. Naatz — $4,500 for an annual physical exam and $54 for GKCCF administration fees; Mr. Godderz - $720 for a cell phone allowance, $155,277 for US Excise Tax Gross Up, and $43 for GKCCF administration fees; Mr. Hancock — $360 for a cell phone allowance, $2,000,000 for a severance payment and $24,330 for medical insurance premium payments, and $21 for GKCCF administration fees. Certain other perquisites are provided to our NEOs, but do not result in an aggregate incremental cost to the Company, and thus, no value for any of these perquisites is included in the Summary Compensation Table. Specifically, (1) all employees of the Company, including the NEOs, are given the opportunity to use our stadium and arena suites to the extent the suites are not being used for business purposes; (2) our NEOs may use the services of their administrative assistants for limited personal matters; and (3) spouses of certain of our NEOs accompanied them on private aircraft chartered to transport the NEOs for business purposes. |
(4) | Mr. Godderz was not a Named Executive Officer in 2019 or 2020. |
(5) | Mr. Hancock retired from the Company on July 2, 2021. |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | |||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date | Date Action Taken by Compensation Committee | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#)(5) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | ||||||||||||||||||||||||||||||||||||
Patrick J. Ottensmeyer | N/A | N/A | $ | 0 | $ | 1,204,207 | $ | 2,408,414 | ||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 1,229 | (4) | $ | 259,442 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 0 | 11,369 | 22,738 | $ | 2,399,996 | |||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 5,685 | (3) | $ | 1,200,104 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 20,429 | $ | 211.10 | $ | 1,199,999 |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | |||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date | Date Action Taken by Compensation Committee | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#)(5) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) | ||||||||||||||||||||||||||||||||||||
Michael W. Upchurch | N/A | N/A | $ | 0 | $ | 399,774 | $ | 799,548 | ||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 398 | (4) | $ | 84,018 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 0 | 2,821 | 5,642 | $ | 595,513 | |||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 1,410 | (3) | $ | 297,651 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 5,069 | $ | 211.10 | $ | 297,753 | |||||||||||||||||||||||||||||||||||||||||||
Jeffrey M. Songer | N/A | N/A | $ | 0 | $ | 422,394 | $ | 844,788 | ||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 398 | (4) | $ | 84,018 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 0 | 2,399 | 4,798 | $ | 506,429 | |||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 3,568 | (3) | $ | 753,205 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 4,311 | $ | 211.10 | $ | 253,228 | |||||||||||||||||||||||||||||||||||||||||||
Michael J. Naatz | N/A | N/A | $ | 0 | $ | 353,675 | $ | 707,350 | ||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 353 | (4) | $ | 74,518 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 0 | 2,271 | 4,542 | $ | 479,408 | |||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 1,136 | (3) | $ | 239,810 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 4,082 | $ | 211.10 | $ | 239,777 | |||||||||||||||||||||||||||||||||||||||||||
Adam J. Godderz | N/A | N/A | $ | 0 | $ | 309,283 | $ | 618,566 | ||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 270 | (4) | $ | 56,997 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 0 | 1,516 | 3,032 | $ | 320,028 | |||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 758 | (3) | $ | 160,014 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 2,724 | $ | 211.10 | $ | 160,008 | |||||||||||||||||||||||||||||||||||||||||||
Brian D. Hancock | N/A | N/A | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 363 | (4) | $ | 76,629 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 0 | 2,271 | 4,542 | $ | 479,408 | |||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 1,136 | (3) | $ | 239,810 | ||||||||||||||||||||||||||||||||||||||||||||
02/03/2021 | 4,082 | $ | 211.10 | $ | 239,777 |
(1) | The amounts reflected in these columns represent the threshold, target and maximum amounts that could have been earned under our 2021 AIP. Actual amounts paid for 2021 performance are reflected in the Non-Equity Incentive Plan Compensation column in the Summary Compensation Table. |
(2) | The amounts reflected in these columns represent the threshold, target and maximum amounts that could be earned for the performance share awards made under our 2021 LTI Program. See Compensation Discussion and Analysis for additional details of the 2021 LTI Program, including the performance goals. The amounts in the grant date fair value column represent the probable outcome at grant date of the performance goals for the 2021 LTI Program. |
(3) | This amount reflects restricted stock awards granted under the 2017 Plan pursuant to our 2021 LTI Program. The shares vest in full three years after the grant date. For participants that are retirement eligible, 1/3 of the shares become non-forfeitable in three annual installments beginning one year from the grant date; however, such shares remain subject to sale and transfer restrictions in accordance with the original vesting schedule. Mr. Ottensmeyer and Mr. Upchurch are retirement eligible. Holders of restricted stock are entitled to vote such shares and dividends declared on the Common Stock are accrued and paid to the participant upon the vesting ornon-forfeitability, as applicable, of the restricted shares. |
(4) | This amount reflects restricted stock awards granted under the 2017 Plan pursuant to our Executive Plan. The shares vest in full one year after the grant date. For participants that are retirement eligible, the shares become non-forfeitable immediately; however, such shares remain subject to sale and transfer restrictions in accordance with the original vesting schedule. Mr. Ottensmeyer and Mr. Upchurch are retirement eligible. Holders of restricted stock are entitled to vote such shares and dividends declared on the Common Stock are accrued and paid to the participant upon the vesting ornon-forfeitability, as applicable, of the restricted shares. |
(5) | The amounts in this column reflect non-qualified stock options granted under the 2017 Plan pursuant to our 2021 LTI Program. The options vest in equal 1/3 amounts on the first, second and third anniversary of the grant date. |
Option Awards | Stock Awards | |||||||||||||||
Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($)(3) | |||||||||||||
Ottensmeyer | | 4,690 161,650 | | $ $ | 1,101,704 28,455,431.46 | (1) (2) | 53,996 | $ | 12,000,240 | |||||||
Upchurch | | 37,845 11,288 | | $ $ | 7,559,089 1,396,024.14 | (1) (2) | 12,570 | $ | 2,787,307 | |||||||
Songer | 27,768 | $ | 4,667,998.97 | (2) | 22,811 | $ | 5,808,904 | |||||||||
Naatz | 20,010 | $ | 3,074,586.95 | (2) | 9,240 | $ | 2,320,635 | |||||||||
Godderz | | 8,844 5,936 | | $ $ | 1,725,180 726,923.58 | (1) (2) | 3,910 | $ | 1,038,968 | |||||||
Hancock | 14,619 | $ | 2,182,889 | (1) | 7,364 | $ | 1,570,142 |
(1) | This value was realized from options that were exercised prior to the merger. The value realized on shares that were sold immediately upon exercise is the difference between the actual sales price and the exercise price of the option. |
(2) | Pursuant to the Merger Agreement, each outstanding (vested and unvested) employee stock option was converted to cash and paid out immediately following the closing into Voting Trust. Options were cashed out at the difference between the Merger Consideration Value of $301.20 and the exercise price of the respective option. |
(3) | The value realized is the fair market value of our Common Stock (the closing price on the NYSE) on the trading day prior to the vesting date. Pursuant to the Merger Agreement, all unvested restricted share awards became vested immediately prior to the effective time of the merger and received the Merger Consideration paid to shareholders ($90.00 per share plus 2.884 shares of CP common stock per share). |
Benefit | General Severance | Change in Control Severance | ||
Cash Severance | • CEO: 2 x (base salary + target bonus) • Other NEOs: 1 x (base salary + target bonus) | • CEO: 3 x (base salary + target bonus) • Messrs. Upchurch & Godderz: 3 x (base salary + target bonus) (1) • Other NEOs: 2 x (base salary + target bonus) (1) | ||
Current-Year Bonus | • Prorated, subject to actual financial performance | • Prorated at target financial performance | ||
Long-Term Incentives | • Determined by equity award agreement | • CEO & NEOs: All unvested equity awards (including awards converted to cash-based awards in connection with the merger) shall vest upon Qualified Termination | ||
Welfare Benefit Continuation | • COBRA (for 12 months), if elected, executive will only be required to pay the same share of the applicable premium for medical coverage that would apply if the executive were participating in the medical plan as an active employee. | • COBRA (for 18 months), if elected, executive will only be required to pay the same share of the applicable premium for medical coverage that would apply if the executive were participating in the medical plan as an active employee. | ||
Outplacement | • One year – up to $25,000 | • One year – up to $25,000 |
(1) | Minimum of 60% target bonus used for select executives in the event of a CIC severance. |
restrictions upon a termination of affiliation by reason of a disability prior to vesting. Additionally, for the performance shares, if there is a termination of affiliation due to a disability prior to vesting, then upon such termination of affiliation the executive will be deemed to have earned a number of shares determined as if the Performance Goals were at target. Also, for the performance shares, if there is a termination of affiliation prior to vesting due to retirement, a portion of the performance shares will be forfeited where the forfeited portion shall equal the number of performance shares times a fraction, the numerator of which is the total number of remaining whole months in the performance period and the denominator of which is thirty-six months. The portion of performance shares not forfeited pursuant to the foregoing shall be earned based on the applicable performance percentage achieved and shall be paid on the later of the vesting date or the date the results are certified. |
Patrick J. Ottensmeyer | ||||||||||||||||||||
Benefit | Death | Disability | Retirement | Change in Control | Without Cause or Good Reason | |||||||||||||||
Cash Severance | $ | — | $ | — | $ | — | $ | 6,792,621 | $ | 4,528,414 | ||||||||||
Retention Bonus | $ | — | $ | — | $ | — | $ | 1,590,000 | $ | — | ||||||||||
Equity (Intrinsic Value) | $ | — | $ | — | $ | — | ||||||||||||||
Unvested Restricted Stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unvested Performance Shares | $ | 23,771,909 | $ | 23,771,909 | $ | 16,666,400 | $ | 23,771,909 | $ | — | ||||||||||
Unexercisable Options | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | 23,771,909 | $ | 23,771,909 | $ | 16,666,400 | $ | 23,771,909 | $ | — | ||||||||||
Other Benefits | ||||||||||||||||||||
Outplacement Benefits | $ | — | $ | — | $ | — | $ | 25,000 | $ | 25,000 | ||||||||||
Health & Welfare (Present Value) | $ | — | $ | — | $ | — | $ | 8,072 | $ | 5,381 | ||||||||||
Estimated Make Whole Payment | $ | — | $ | — | $ | — | $ | 9,884,670 | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | 9,917,742 | $ | 30,381 | ||||||||||
Total | $ | 23,771,909 | $ | 23,771,909 | $ | 16,666,400 | $ | 42,072,272 | $ | 4,558,795 | ||||||||||
Michael W. Upchurch | ||||||||||||||||||||
Benefit | Death | Disability | Retirement | Change in Control | Without Cause or Good Reason | |||||||||||||||
Cash Severance | $ | — | $ | — | $ | — | $ | 2,822,322 | $ | 940,774 | ||||||||||
Retention Bonus | $ | — | $ | — | $ | — | $ | 811,500 | $ | — | ||||||||||
Equity (Intrinsic Value) | $ | — | $ | — | $ | — | ||||||||||||||
Unvested Restricted Stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unvested Performance Shares | $ | 5,552,923 | $ | 5,552,923 | $ | 3,828,252 | $ | 5,552,923 | $ | — | ||||||||||
Unexercisable Options | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | 5,552,923 | $ | 5,552,923 | $ | 3,828,252 | $ | 5,552,923 | $ | — | ||||||||||
Other Benefits | ||||||||||||||||||||
Outplacement Benefits | $ | — | $ | — | $ | — | $ | 25,000 | $ | 25,000 | ||||||||||
Health & Welfare (Present Value) | $ | — | $ | — | $ | — | $ | 16,115 | $ | 10,743 | ||||||||||
Estimated Make Whole Payment | $ | — | $ | — | $ | — | $ | 3,080,020 | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | 3,121,135 | $ | 35,743 | ||||||||||
Total | $ | 5,552,923 | $ | 5,552,923 | $ | 3,828,252 | $ | 12,307,880 | $ | 976,517 | ||||||||||
Jeffrey M. Songer | ||||||||||||||||||||
Benefit | Death | Disability | Retirement | Change in Control | Without Cause or Good Reason | |||||||||||||||
Cash Severance | $ | — | $ | — | $ | — | $ | 1,920,788 | $ | 960,394 | ||||||||||
Retention Bonus | $ | — | $ | — | $ | — | $ | 807,000 | $ | — | ||||||||||
Equity (Intrinsic Value) | $ | — | $ | — | $ | — | ||||||||||||||
Unvested Restricted Stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unvested Performance Shares | $ | 5,271,602 | $ | 5,271,602 | $ | — | $ | 5,271,602 | $ | — | ||||||||||
Unexercisable Options | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | 5,271,602 | $ | 5,271,602 | $ | — | $ | 5,271,602 | $ | — | ||||||||||
Other Benefits | $ | — | ||||||||||||||||||
Outplacement Benefits | $ | — | $ | — | $ | — | $ | 25,000 | $ | 25,000 | ||||||||||
Health & Welfare (Present Value) | $ | — | $ | — | $ | — | $ | 25,028 | $ | 16,685 | ||||||||||
Estimated Make Whole Payment | $ | — | $ | — | $ | — | $ | 2,677,757 | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | 2,727,785 | $ | 41,685 | ||||||||||
$ | — | |||||||||||||||||||
Total | $ | 5,271,602 | $ | 5,271,602 | $ | — | $ | 10,727,175 | $ | 1,002,079 | ||||||||||
Michael J. Naatz | ||||||||||||||||||||
Benefit | Death | Disability | Retirement | Change in Control | Without Cause or Good Reason | |||||||||||||||
Cash Severance | $ | — | $ | — | $ | — | $ | 1,725,350 | $ | 862,675 | ||||||||||
Retention Bonus | $ | — | $ | — | $ | — | $ | 763,500 | $ | — | ||||||||||
Equity (Intrinsic Value) | $ | — | $ | — | $ | — | ||||||||||||||
Unvested Restricted Stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unvested Performance Shares | $ | 5,031,847 | $ | 5,031,847 | $ | — | $ | 5,031,847 | $ | — | ||||||||||
Unexercisable Options | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | 5,031,847 | $ | 5,031,847 | $ | — | $ | 5,031,847 | $ | — | ||||||||||
Other Benefits | $ | — | ||||||||||||||||||
Outplacement Benefits | $ | — | $ | — | $ | — | $ | 25,000 | $ | 25,000 | ||||||||||
Health & Welfare (Present Value) | $ | — | $ | — | $ | — | $ | 24,978 | $ | 16,652 | ||||||||||
Estimated Make Whole Payment | $ | — | $ | — | $ | — | $ | 2,498,114 | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | 2,548,092 | $ | 41,652 | ||||||||||
Total | $ | 5,031,847 | $ | 5,031,847 | $ | — | $ | 10,068,789 | $ | 904,327 | ||||||||||
Adam J. Godderz | ||||||||||||||||||||
Benefit | Death | Disability | Retirement | Change in Control | Without Cause or Good Reason | |||||||||||||||
Cash Severance | $ | — | $ | — | $ | — | $ | 2,397,849 | $ | 799,283 | ||||||||||
Retention Bonus | $ | — | $ | — | $ | — | $ | 735,000 | $ | — | ||||||||||
Equity (Intrinsic Value) | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Unvested Restricted Stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unvested Performance Shares | $ | 2,873,448 | $ | 2,873,448 | $ | — | $ | 2,873,448 | $ | — | ||||||||||
Unexercisable Options | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | 2,873,448 | $ | 2,873,448 | $ | — | $ | 2,873,448 | $ | — | ||||||||||
Other Benefits | $ | — | ||||||||||||||||||
Outplacement Benefits | $ | — | $ | — | $ | — | $ | 25,000 | $ | 25,000 | ||||||||||
Health & Welfare (Present Value) | $ | — | $ | — | $ | — | $ | 25,028 | $ | 16,685 | ||||||||||
Estimated Make Whole Payment | $ | — | $ | — | $ | — | $ | 2,649,758 | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | 2,699,786 | $ | 41,685 | ||||||||||
Total | $ | 2,873,448 | $ | 2,873,448 | $ | — | $ | 8,706,083 | $ | 840,968 | ||||||||||
Brian D. Hancock* | ||||||||||||||||||||
Benefit | Death | Disability | Retirement | Change in Control | Without Cause or Good Reason | |||||||||||||||
Cash Severance | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Retention Bonus | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Equity (Intrinsic Value) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unvested Restricted Stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unvested Performance Shares | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Unexercisable Options | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Other Benefits | ||||||||||||||||||||
Outplacement Benefits | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Health & Welfare (Present Value) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Estimated Make Whole Payment | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
* | Mr. Hancock retired from the Company on July 2, 2021. Amounts paid to him upon his retirement are set forth in the Summary Compensation Table. |
Type | Amount | |||
Board of Directors | $ | 75,000 | ||
Chair of the Board | $ | 100,000 | ||
Committee Chair | $ | 20,000 | ||
Committee Membership | $ | 10,000 |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)(1) | Option Awards ($)(1) | All Other Compensation ($)(4) | Total ($) | |||||||||||||||
Lydia I. Beebe | $ | 260,000 | $ | 0 | $ | 0 | $ | 30,049 | $ | 290,049 | ||||||||||
Lu M. Córdova | $ | 270,000 | $ | 0 | $ | 0 | $ | 17,049 | $ | 287,049 | ||||||||||
Robert J. Druten | $ | 380,000 | (2) | $ | 0 | $ | 0 | $ | 27,430 | $ | 407,430 | |||||||||
Antonio O. Garza, Jr. | $ | 260,000 | $ | 0 | $ | 0 | $ | 50,075 | $ | 310,075 | ||||||||||
David Garza-Santos | $ | 250,000 | (3) | $ | 0 | $ | 0 | $ | 75 | $ | 250,075 | |||||||||
Janet H. Kennedy | $ | 250,000 | $ | 0 | $ | 0 | $ | 10,075 | $ | 260,075 | ||||||||||
Mitchell J. Krebs | $ | 260,000 | $ | 0 | $ | 0 | $ | 8,075 | $ | 268,075 | ||||||||||
Henry J. Maier | $ | 270,000 | $ | 0 | $ | 0 | $ | 49 | $ | 270,049 | ||||||||||
Thomas A. McDonnell | $ | 280,000 | $ | 0 | $ | 0 | $ | 30,030 | $ | 310,030 |
(1) | No stock or option awards were granted to any director in 2021. |
(2) | Mr. Druten deferred receipt of $240,000 pursuant to the Directors Deferred Stock Program. He accrued 817 deferred shares as a result of this deferral and receives dividend equivalents on such deferred shares. Pursuant to the Merger Agreement, outstanding deferred shares were paid out to the participant immediately prior to the effective time of the merger. In exchange for the deferred shares that were paid out, the participant received the Merger Consideration that was paid to all stockholders ($90.00 per share plus 2.884 shares of CP common stock per share). |
(3) | Mr. Garza-Santos deferred receipt of $110,000 pursuant to the Directors Deferred Stock Program. He accrued 374 deferred shares as a result of this deferral and receives dividend equivalents on such deferred shares. Pursuant to the Merger Agreement, outstanding deferred shares were paid out to the participant immediately prior to the effective time of the merger. In exchange for the deferred shares that were paid out, the participant received the Merger Consideration that was paid to all stockholders ($90.00 per share plus 2.884 shares of CP common stock per share). |
(4) | All Other Compensation for directors consists of: |
Name | Group Term Life Premiums | AD&D Premiums | Charitable Matching Gifts (a) | Other(b) | Total | |||||||||||||||
Lydia I. Beebe | $ | 39 | $ | 10 | $ | 30,000 | $ | 0 | $ | 30,049 | ||||||||||
Lu M. Córdova | $ | 39 | $ | 10 | $ | 17,000 | $ | 0 | $ | 17,049 | ||||||||||
Robert J. Druten | $ | 24 | $ | 6 | $ | 27,400 | $ | 0 | $ | 27,430 | ||||||||||
Antonio O. Garza, Jr. | $ | 60 | $ | 15 | $ | 14,000 | $ | 36,000 | $ | 50,075 | ||||||||||
David Garza-Santos | $ | 60 | $ | 15 | $ | 0 | $ | 0 | $ | 75 | ||||||||||
Janet H. Kennedy | $ | 60 | $ | 15 | $ | 10,000 | $ | 0 | $ | 10,075 | ||||||||||
Mitchell J. Krebs | $ | 60 | $ | 15 | $ | 8,000 | $ | 0 | $ | 8,075 | ||||||||||
Henry J. Maier | $ | 39 | $ | 10 | $ | 0 | $ | 0 | $ | 49 | ||||||||||
Thomas A. McDonnell | $ | 24 | $ | 6 | $ | 30,000 | $ | 0 | $ | 30,030 |
(a) | We provide a two-for-one |
(b) | Amounts in this column for 2021 include: Mr. Garza – director fees paid by the Company’s wholly owned subsidiary, Kansas City Southern de Mexico, S.A. de C.V., for serving as Chairman of its board of directors. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Name of Beneficial Owner | Common Stock (1) | Percent of Class (1) | ||||||
5% or Greater Owners | ||||||||
CP VOTING TRUST(2) | 100 | 100 | % | |||||
Named Executive Officers and Directors | ||||||||
Lydia I. Beebe | — | — | ||||||
Lu M. Córdova | — | — | ||||||
Robert J. Druten | — | — | ||||||
Antonio O. Garza, Jr. | — | — | ||||||
David Garza-Santos | — | — | ||||||
Janet H. Kennedy | — | — | ||||||
Mitchell J. Krebs | — | — | ||||||
Henry J. Maier | — | — | ||||||
Thomas A. McDonnell | — | — | ||||||
Patrick J. Ottensmeyer | — | — | ||||||
Brian D. Hancock | — | — | ||||||
Michael J. Naatz | — | — | ||||||
Jeffrey M. Songer | — | — | ||||||
Michael W. Upchurch | ||||||||
All executive officers and directors as a group (14 persons) | — | — |
(1) | This column includes Common Stock beneficially owned by officers, directors, nominees for director and beneficial owners of more than five percent of our Common Stock. The list of our executive officers is included in our Annual Report on Form 10-K for the year ended December 31, 2021. |
(2) | David L. Starling, 2442 NE Rivercrest Rd., Fayetteville, AR 72701, is the Trustee of a Voting Trust established December 14, 2021, by and between CP, Cygnus Holding Corp., a Delaware corporation and an indirect wholly owned subsidiary of CP, and David L. Starling. Upon the execution of the Voting Trust Agreement and completion of the merger transactions contemplated under the Merger Agreement, the Company was ultimately merged with and into a wholly-owned subsidiary of CP. Immediately upon completion of these transactions, the surviving subsidiary from these mergers changed its name to Kansas City Southern (KCS), and the certificate for all outstanding common shares of the Company was deposited with the Trustee to hold in trust. |
Plan Category | Number of Securities to Be Issued upon Exercise of Outstanding Options, Warrants and Rights | Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans-Excluding Securities Reflected in the First Column (i) | ||||||
Equity compensation plans: | |||||||||
Approved by security holders | 678,415 | $ | 82.22 | 7,242,526 | |||||
Not approved by security holders | — | — | — | ||||||
Total | 678,415 | $ | 82.22 | 7,242,526 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Year Ended December 31 | ||||||||
Fees | 2021 | 2020 | ||||||
Audit fees(1) | $ | 2,491.4 | $ | 1,779.8 | ||||
Audit-related fees(2) | 64.0 | 63.0 | ||||||
Tax fees(3) | 36.5 | 29.5 | ||||||
All other fees | 160.0 | — | ||||||
Total | $ | 2,751.9 | $ | 1,872.3 | ||||
(1) | Audit fees principally include fees for the audit of our consolidated financial statements included in our annual report on Form 10-K and internal control over financial reporting (integrated audit); the review of financial statements included in our quarterly reports on Form10-Q; the audit for statutory purposes of the consolidated financial statements of KCSM, our wholly-owned subsidiary; and services routinely provided by the auditor in connection with statutory and regulatory filings or engagements. |
(2) | Audit-related fees consist of fees for other attestation and related services that are reasonably related to the performance of the audit or review of our financial statements. |
(3) | Tax fees consist of tax compliance services. |
Item 15. | Exhibits and Financial Statement Schedules |
Exhibit | Description | |
31.2 | Certification of Michael W. Upchurch, Chief Financial Officer of the Company relating to this amendment, is attached to this Form | |
104 | ||
Kansas City Southern | ||
By: | / | |
Patrick J. Ottensmeyer President, Chief Executive Officer and Director |
April 4, 2022 | ||