Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 23, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | KANSAS CITY SOUTHERN | ||
Entity Central Index Key | 54480 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 110,411,095 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $11.70 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | $2,577.10 | $2,369.30 | $2,238.60 |
Operating expenses: | |||
Compensation and benefits | 474.5 | 441.6 | 430.5 |
Purchased services | 245.2 | 217.6 | 219.8 |
Fuel | 415.9 | 389.6 | 359.6 |
Equipment costs | 119.2 | 160.5 | 167.1 |
Depreciation and amortization | 258.1 | 223.3 | 198.8 |
Materials and other | 216.8 | 198.1 | 189.9 |
Lease termination costs | 38.3 | 0 | 0 |
Elimination of deferred statutory profit sharing liability, net | 0 | 0 | -43 |
Total operating expenses | 1,768 | 1,630.70 | 1,522.70 |
Operating income | 809.1 | 738.6 | 715.9 |
Equity in net earnings of unconsolidated affiliates | 21.1 | 18.8 | 19.3 |
Interest expense | -72.8 | -80.6 | -100.4 |
Debt retirement costs | -6.6 | -119.2 | -20.1 |
Foreign exchange gain (loss) | -35.5 | -5.2 | 2.7 |
Other expense, net | -2.2 | -0.8 | -1 |
Income before income taxes | 713.1 | 551.6 | 616.4 |
Income tax expense | 208.8 | 198.3 | 237 |
Net income | 504.3 | 353.3 | 379.4 |
Less: Net income attributable to noncontrolling interest | 1.7 | 1.9 | 2.1 |
Net income attributable to Kansas City Southern and subsidiaries | 502.6 | 351.4 | 377.3 |
Preferred stock dividends | 0.2 | 0.2 | 0.2 |
Net income available to common stockholders | $502.40 | $351.20 | $377.10 |
Earnings per share: | |||
Basic earnings per share | $4.56 | $3.19 | $3.44 |
Diluted earnings per share | $4.55 | $3.18 | $3.43 |
Average shares outstanding (in thousands): | |||
Basic | 110,163 | 109,973 | 109,712 |
Potentially dilutive common shares | 270 | 367 | 368 |
Diluted | 110,433 | 110,340 | 110,080 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $504.30 | $353.30 | $379.40 |
Other comprehensive income (loss): | |||
Unrealized loss on cash flow hedges arising during the period, net of tax of $(0.1) million and $(0.6) million | 0 | -0.2 | -1 |
Reclassification adjustment from cash flow hedges included in net income, net of tax of less than $0.1 million, $0.3 million and $0.3 million | 0.1 | 0.7 | 0.4 |
Amortization of prior service credit, net of tax of $(0.1) million for all periods presented | -0.2 | -0.1 | -0.1 |
Foreign currency translation adjustments, net of tax of $(0.7) million and $0.4 million | -1.1 | 0 | 0.5 |
Other comprehensive income (loss) | -1.2 | 0.4 | -0.2 |
Comprehensive income | 503.1 | 353.7 | 379.2 |
Less: comprehensive income attributable to noncontrolling interest | 1.7 | 1.9 | 2.1 |
Comprehensive income attributable to Kansas City Southern and subsidiaries | $501.40 | $351.80 | $377.10 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tax effect on unrealized loss on cash flow hedges | ($0.10) | ($0.60) | |
Tax effect on reclassification adjustment from cash flow hedges included in net income | 0 | 0.3 | 0.3 |
Tax effect on amortization of prior service credit | -0.1 | -0.1 | -0.1 |
Tax effect on foreign currency translation adjustments | ($0.70) | $0.40 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $348 | $429.50 |
Accounts receivable, net | 181.6 | 198.3 |
Materials and supplies | 111 | 121.3 |
Deferred income taxes | 100.1 | 131.6 |
Other current assets | 77.6 | 61.7 |
Total current assets | 818.3 | 942.4 |
Investments | 36.4 | 41.1 |
Property and equipment (including concession assets), net | 7,154.70 | 6,356.30 |
Other assets | 81.6 | 95.6 |
Total assets | 8,091 | 7,435.40 |
Current liabilities: | ||
Long-term debt due within one year | 24.8 | 332 |
Short-term borrowings | 450.1 | 0 |
Accounts payable and accrued liabilities | 423.9 | 398.6 |
Total current liabilities | 898.8 | 730.6 |
Long-term debt | 1,841 | 1,856.90 |
Deferred income taxes | 1,156.30 | 1,044.60 |
Other noncurrent liabilities and deferred credits | 130.8 | 126.7 |
Total liabilities | 4,026.90 | 3,758.80 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity: | ||
$.01 par, common stock, 400,000,000 shares authorized, 123,352,185 shares issued; 110,392,330 and 110,229,229 shares outstanding at December 31, 2014 and 2013, respectively | 1.1 | 1.1 |
Additional paid-in capital | 949.8 | 942.5 |
Retained earnings | 2,801.70 | 2,422.90 |
Accumulated other comprehensive loss | -3.2 | -2 |
Total stockholders’ equity | 3,755.50 | 3,370.60 |
Noncontrolling interest | 308.6 | 306 |
Total equity | 4,064.10 | 3,676.60 |
Total liabilities and equity | 8,091 | 7,435.40 |
$25 Par Preferred Stock [Member] | ||
Stockholders’ equity: | ||
$25 par, 4% noncumulative, preferred stock, 840,000 shares authorized, 649,736 shares issued, 242,170 shares outstanding | $6.10 | $6.10 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stockholders’ equity: | |||
Common Stock, Par Value | $0.01 | $0.01 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |
Common Stock, Shares Issued | 123,352,185 | 123,352,185 | |
Common Stock, Shares Outstanding | 110,392,330 | 110,229,229 | |
$25 Par Preferred Stock [Member] | |||
Stockholders’ equity: | |||
Preferred Stock, Par Value | $25 | $25 | $25 |
Preferred Stock, Dividend Rate | 4.00% | 4.00% | |
Preferred Stock, Shares Authorized | 840,000 | 840,000 | |
Preferred Stock, Shares Issued | 649,736 | 649,736 | |
Preferred Stock, Shares Outstanding | 242,170 | 242,170 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $504.30 | $353.30 | $379.40 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 258.1 | 223.3 | 198.8 |
Deferred income taxes | 140.1 | 111.2 | 197.3 |
Equity in net earnings of unconsolidated affiliates | -21.1 | -18.8 | -19.3 |
Share-based compensation | 10 | 13.6 | 10.7 |
Excess tax benefit from share-based compensation | 0.7 | -4.2 | -31.5 |
Elimination of deferred statutory profit sharing liability | 0 | 0 | -47.8 |
Distributions from unconsolidated affiliates | 25.5 | 12.5 | 19.8 |
Debt retirement costs | 6.6 | 119.2 | 20.1 |
Changes in working capital items: | |||
Accounts receivable | 17.2 | -14.4 | -21.5 |
Materials and supplies | 9.2 | 7.1 | -9.3 |
Other current assets | -10 | -1.8 | -15.1 |
Accounts payable and accrued liabilities | -21.8 | 0.3 | -3 |
Other, net | -12.8 | -3 | -5.4 |
Net cash provided by operating activities | 906 | 798.3 | 673.2 |
Investing activities: | |||
Capital expenditures | -668.2 | -594.8 | -517.1 |
Purchase or replacement of equipment under operating leases | -302.1 | -211.8 | -22.9 |
Property investments in MSLLC | -26.7 | -31.6 | -35.2 |
Proceeds from disposal of property | 9.9 | 8.2 | 14.7 |
Other, net | 4.2 | -3.3 | 8.6 |
Net cash used for investing activities | -982.9 | -833.3 | -551.9 |
Financing activities: | |||
Proceeds from short-term borrowings | 15,368.80 | 0 | 0 |
Repayment of short-term borrowings | -14,920.20 | 0 | 0 |
Proceeds from issuance of long-term debt | 175 | 1,918.40 | 329.6 |
Repayment of long-term debt | -508 | -1,343.20 | -375.9 |
Dividends paid | -116.6 | -71.2 | -86.1 |
Debt costs | -4.9 | -117.8 | -22.1 |
Excess tax benefit from share-based compensation | -0.7 | 4.2 | 31.5 |
Proceeds from employee stock plans | 2 | 1.5 | 1.9 |
Net cash provided by (used for) financing activities | -4.6 | 391.9 | -121.1 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | -81.5 | 356.9 | 0.2 |
At beginning of year | 429.5 | 72.6 | 72.4 |
At end of year | 348 | 429.5 | 72.6 |
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 | 83.2 | 50.1 | 44.4 |
Capital lease obligations incurred | 9.1 | 0 | 13.8 |
Non-cash asset acquisitions | 5.9 | 56.7 | 13.2 |
Dividends accrued but not yet paid at end of year | 31 | 23.8 | 0 |
Cash payments: | |||
Interest paid, net of amounts capitalized | 72.5 | 84.1 | 97.9 |
Income tax payments, net of refunds | $62.90 | $99.20 | $1.90 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | $25 Par Preferred Stock [Member] | $.01 Par Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | $25 Par Preferred Stock [Member] | $25 Par Preferred Stock [Member] |
In Millions, unless otherwise specified | Retained Earnings [Member] | ||||||||
Balance at Dec. 31, 2011 | $3,058.70 | $6.10 | $1.10 | $884.20 | $1,875.30 | ($2.20) | $294.20 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 379.4 | 377.3 | 2.1 | ||||||
Other comprehensive income (loss) | -0.2 | -0.2 | |||||||
Contributions from noncontrolling interest | 7.8 | 7.8 | |||||||
Dividends on common stock | -85.9 | -85.9 | |||||||
Dividends on preferred stock | -0.2 | -0.2 | |||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | -1.1 | -1.1 | |||||||
Excess tax benefit from share-based compensation | 31.5 | 31.5 | |||||||
Share-based compensation | 10.7 | 10.7 | |||||||
Balance at Dec. 31, 2012 | 3,400.70 | 6.1 | 1.1 | 925.3 | 2,166.50 | -2.4 | 304.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 353.3 | 351.4 | 1.9 | ||||||
Other comprehensive income (loss) | 0.4 | 0.4 | |||||||
Dividends on common stock | -94.8 | -94.8 | |||||||
Dividends on preferred stock | -0.2 | -0.2 | |||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | -0.6 | -0.6 | |||||||
Excess tax benefit from share-based compensation | 4.2 | 4.2 | |||||||
Share-based compensation | 13.6 | 13.6 | |||||||
Balance at Dec. 31, 2013 | 3,676.60 | 6.1 | 1.1 | 942.5 | 2,422.90 | -2 | 306 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 504.3 | 502.6 | 1.7 | ||||||
Other comprehensive income (loss) | -1.2 | -1.2 | |||||||
Contributions from noncontrolling interest | 0.9 | 0.9 | |||||||
Dividends on common stock | -123.6 | -123.6 | |||||||
Dividends on preferred stock | -0.2 | -0.2 | |||||||
Options exercised and stock subscribed, net of shares withheld for employee taxes | -2 | -2 | |||||||
Excess tax benefit from share-based compensation | -0.7 | -0.7 | |||||||
Share-based compensation | 10 | 10 | |||||||
Balance at Dec. 31, 2014 | $4,064.10 | $6.10 | $1.10 | $949.80 | $2,801.70 | ($3.20) | $308.60 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock, Dividends Per Share | $1.12 | $0.86 | $0.78 |
$25 Par Preferred Stock [Member] | |||
Preferred Stock, Par Value | $25 | $25 | $25 |
Preferred Stock, Dividends Per Share | $1 | $1 | $1 |
Description_of_the_Business
Description of the Business | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Description of the Business | Description of the Business | |
Kansas City Southern (“KCS” or the “Company”), a Delaware corporation, is a holding company with principal operations in rail transportation. | ||
The Company is engaged primarily in the freight rail transportation business operating through a single coordinated rail network under one reportable business segment. The Company generates revenues and cash flows by providing its customers with freight delivery services both within its regions, and throughout North America through connections with other Class I rail carriers. KCS’s customers conduct business in a number of different industries, including electric-generating utilities, chemical and petroleum products, paper and forest products, agriculture and mineral products, automotive products and intermodal transportation. | ||
The primary subsidiaries of the Company consist of the following: | ||
• | The Kansas City Southern Railway Company (“KCSR”), a wholly-owned consolidated subsidiary; | |
• | Kansas City Southern de México, S.A. de C.V. (“KCSM”), a wholly-owned consolidated subsidiary which operates under the rights granted by the Concession acquired from the Mexican government in 1997 (the “Concession”) as described below; | |
• | Mexrail, Inc. (“Mexrail”), a wholly-owned consolidated subsidiary; which wholly owns The Texas Mexican Railway Company (“Tex-Mex”); | |
• | Meridian Speedway, LLC (“MSLLC”), a seventy percent-owned consolidated affiliate. MSLLC owns the former KCSR rail line between Meridian, Mississippi and Shreveport, Louisiana, which is the portion of the rail line between Dallas, Texas and Meridian known as the “Meridian Speedway”; | |
• | KCSM Servicios, S.A. de C.V. (“KCSM Servicios”), a wholly-owned consolidated subsidiary; | |
Including equity investments in: | ||
• | Panama Canal Railway Company (“PCRC”), a fifty percent-owned unconsolidated affiliate; | |
• | Southern Capital Corporation, LLC (“Southern Capital”), a fifty percent-owned unconsolidated affiliate that owned and leased locomotives and other equipment; | |
• | Ferrocarril y Terminal del Valle de México, S.A. de C.V. (“FTVM”), a twenty-five percent-owned unconsolidated affiliate that provides railroad services as well as ancillary services in the greater Mexico City area; and | |
• | PTC-220, LLC (“PTC-220”), a fourteen percent-owned unconsolidated affiliate that holds the licenses to large blocks of radio spectrum and other assets for the deployment of positive train control. | |
The KCSM Concession. KCSM holds a concession from the Mexican government until June 2047 (exclusive through 2027, subject to certain trackage and haulage rights granted to other concessionaires), which is renewable under certain conditions for an additional period of up to 50 years (the “Concession”). The Concession is to provide freight transportation services over rail lines which are a primary commercial corridor of the Mexican railroad system. These lines include the shortest, most direct rail passageway between Mexico City and Laredo, Texas and serve most of Mexico’s principal industrial cities and three of its major shipping ports. KCSM has the right to use, but does not own, all track and buildings that are necessary for the rail lines’ operation. KCSM is obligated to maintain the right of way, track structure, buildings and related maintenance facilities to the operational standards specified in the Concession agreement and to return the assets in that condition at the end of the Concession period. KCSM was required to pay the Mexican government a concession duty equal to 0.5% of gross revenues during the first 15 years of the Concession period, and on June 24, 2012, KCSM began paying 1.25% of such revenues, which is effective for the remaining years of the Concession period. | ||
Under the Concession and Mexican law, the Company may freely set rates unless the Mexican government determines that there is no effective competition. KCSM is required to register its rates with the Mexican government and to provide railroad services to all users on a fair and non-discriminatory basis and in accordance with efficiency and safety standards approved periodically by the Mexican government. In the event that rates charged are higher than the registered rates, KCSM must reimburse customers with interest, and risk the revocation of the Concession. | ||
Mexican Railroad Services Law and regulations and the Concession establish several circumstances under which the Concession will terminate: revocation by the Mexican government, statutory appropriation, or KCSM’s voluntary surrender of its rights or liquidation or bankruptcy. The Concession requires the undertaking of capital projects, including those described in a business plan filed every five years with the Mexican government. KCSM submitted its five-year plan with the Mexican government in the fourth quarter of 2012 in which KCSM committed to certain minimum investment and capital improvement goals, which may be waived by the Mexican government upon application for relief for good cause. The Mexican government could also revoke KCSM’s exclusivity to render railroad services after 2027 if it determines that there is insufficient competition. | ||
The Concession is subject to early termination or revocation under certain circumstances. In the event that the Concession is revoked by the Mexican government, KCSM will receive no compensation. Rail lines and all other fixtures covered by the Concession, as well as all improvements made by KCSM or third parties, will revert to the Mexican government. All other property not covered by the Concession, including all locomotives and railcars otherwise acquired, will remain KCSM’s property. In the event of early termination, or total or partial revocation, the Mexican government would have the right to cause KCSM to lease all service-related assets to it for a term of at least one year, automatically renewable for additional one-year terms up to five years. The amount of the rent would be determined by experts appointed by KCSM and the Mexican government. The Mexican government must exercise this right within four months after early termination or revocation of the Concession. In addition, the Mexican government would have a right of first refusal with respect to certain transfers by KCSM of railroad equipment within 90 days after any revocation of the Concession. The Mexican government may also temporarily seize the rail lines and assets used in operating the rail lines in the event of a natural disaster, war, significant public disturbances, or imminent danger to the domestic peace or economy for the duration of any of the foregoing events; provided, however, that Mexican law requires that the Mexican government pay KCSM compensation equal to damages caused and losses suffered if it effects a statutory appropriation for reasons of the public interest. These payments may not be sufficient to compensate the Company for its losses and may not be made timely. | ||
Employees and Labor Relations. Approximately 80% of KCSR employees are covered by collective bargaining agreements. KCSR participates in industry-wide bargaining as a member of the National Carriers’ Conference Committee. Long-term settlement agreements were reached and ratified during 2011 and the first half of 2012 covering all of the participating unions. These agreements will be in effect through December 2015. | ||
KCSM Servicios union employees are covered by one labor agreement, which was signed on April 16, 2012, between KCSM Servicios and the Sindicato de Trabajadores Ferrocarrileros de la República Mexicana (“Mexican Railroad Union”), for an indefinite period of time, for the purpose of regulating the relationship between the parties. Approximately 80% of KCSM Servicios employees are covered by this labor agreement. The compensation terms under this labor agreement are subject to renegotiation on an annual basis and all other benefits are subject to negotiation every two years. The union labor negotiations with the Mexican Railroad Union have not historically resulted in any strike, boycott or other disruption in KCSM’s business operations. On October 14, 2014, compensation terms covering the period from July 1, 2014 through June 30, 2015, were finalized between KCSM Servicios and the Mexican Railroad Union. The finalization of the compensation terms did not have a significant effect on the consolidated financial statements. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies | Significant Accounting Policies | |
Principles of Consolidation. The accompanying consolidated financial statements are presented using the accrual basis of accounting and include the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. | ||
The equity method of accounting is used for all entities in which the Company or its subsidiaries have significant influence, but not a controlling interest. The Company evaluates less-than-majority-owned investments for consolidation pursuant to consolidation and variable interest entity guidance. The Company does not have any less-than-majority-owned investments requiring consolidation. | ||
Use of Estimates. The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to the recoverability and useful lives of assets, personal injury claims, litigation provisions and income taxes. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. | ||
Revenue Recognition. The Company recognizes freight revenue based upon the percentage of completion of a commodity movement as a shipment moves from origin to destination, with the related expense recognized as incurred. Other revenues, in general, are recognized when the product is shipped, as services are performed or contractual obligations are fulfilled. | ||
Foreign Exchange Gain (Loss). For financial reporting purposes, foreign subsidiaries maintain records in U.S. dollars, which is the functional currency. The dollar is the currency that reflects the economic substance of the underlying events and circumstances relevant to the entity. Monetary assets and liabilities denominated in pesos are remeasured into dollars using current exchange rates. The difference between the exchange rate on the date of the transaction and the exchange rate on the settlement date, or balance sheet date if not settled, is included in the income statement as foreign exchange gain or loss. | ||
Cash Equivalents. Short-term liquid investments with an initial maturity of three months or less are classified as cash and cash equivalents. | ||
Accounts Receivable, net. Accounts receivable are net of an allowance for uncollectible accounts as determined by historical experience and adjusted for economic uncertainties or known trends. Accounts are charged to the allowance when a customer enters bankruptcy, when an account has been transferred to a collection agent or submitted for legal action, or when a customer is significantly past due and all available means of collection have been exhausted. At December 31, 2014 and 2013, the allowance for doubtful accounts was $8.7 million and $7.5 million, respectively. For the years ended December 31, 2014, 2013 and 2012, bad debt expense was $0.4 million, $0.6 million and $1.3 million, respectively. | ||
Materials and Supplies. Materials and supplies consisting of diesel fuel, items to be used in the maintenance of rolling stock and items to be used in the maintenance or construction of road property are valued at average cost. | ||
Derivative Instruments. Derivatives are measured at fair value and recorded on the balance sheet as either assets or liabilities. Changes in the fair value of derivatives are recorded either through current earnings or as other comprehensive income, depending on hedge designation. Gains and losses on derivative instruments classified as cash flow hedges are reported in other comprehensive income and are reclassified into earnings in the periods in which earnings are impacted by the variability of the cash flow of the hedged item. The ineffective portion of all hedge transactions is recognized in current period earnings. | ||
Property and Equipment (including Concession Assets). Property and equipment are carried at cost and are depreciated primarily on the group method of depreciation, which the Company believes closely approximates a straight line basis over the estimated useful lives of the assets measured in years. Technology assets and leasehold improvements are depreciated using the straight line method over the lesser of the estimated useful lives of the assets or the lease term. Costs incurred by the Company to acquire the concession rights and related assets, as well as subsequent improvements to the concession assets, are capitalized and amortized using the group method of depreciation over the lesser of the current expected Concession term, including probable renewal of an additional 50-year term, or the estimated useful lives of the assets and rights. | ||
KCS capitalizes costs for self-constructed additions and improvements to property including direct labor and material, indirect overhead costs, and interest during long-term construction projects. Direct costs are charged to capital projects based on the work performed and the material used. Indirect overhead costs are allocated to capital projects as a standard percentage, which is evaluated annually, and applied to direct labor and material costs. Asset removal activities are performed in conjunction with replacement activities; therefore, removal costs are estimated based on a standard percentage of direct labor and indirect overhead costs related to capital replacement projects. For purchased assets, all costs necessary to make the asset ready for its intended use are capitalized. Expenditures that significantly increase asset values, productive capacity, efficiency, safety or extend useful lives are capitalized. Repair and maintenance costs are expensed as incurred. | ||
The group method of depreciation applies a composite rate to classes of similar assets rather than to individual assets. Composite depreciation rates are based upon the Company’s estimates of the expected average useful lives of assets as well as expected net salvage value at the end of their useful lives. In developing these estimates, the Company utilizes periodic depreciation studies performed by an independent engineering firm. Depreciation rate studies are performed at least every three years for equipment and at least every six years for road property (rail, ties, ballast, etc.). The depreciation studies take into account factors such as: | ||
• | Statistical analysis of historical patterns of use and retirements of each asset class; | |
• | Evaluation of any expected changes in current operations and the outlook for the continued use of the assets; | |
• | Evaluation of technological advances and changes to maintenance practices; and | |
• | Historical and expected salvage to be received upon retirement. | |
The depreciation studies may also indicate that the recorded amount of accumulated depreciation is deficient or in excess of the amount indicated by the study. Any such deficiency or excess is amortized as a component of depreciation expense over the remaining useful lives of the affected asset class, as determined by the study. The Company also monitors these factors in non-study years to determine if adjustments should be made to depreciation rates. The Company completed depreciation studies for KCSM in 2014 and its U.S. based assets in 2012. The impacts of the studies were immaterial to the consolidated financial results for all periods. | ||
Also under the group method of depreciation, the cost of railroad property and equipment (net of salvage or sales proceeds) retired or replaced in the normal course of business is charged to accumulated depreciation with no gain or loss recognized. Actual historical costs are retired when available, such as with equipment costs. The use of estimates in recording the retirement of roadway assets is necessary as it is impractical to track individual, homogeneous network-type assets. Certain types of roadway assets are retired using statistical curves derived from the depreciation studies that indicate the relative distribution of the age of the assets retired. For other roadway assets, historical costs are estimated by (1) deflating current costs using inflation indices published by the U.S. Bureau of Labor Statistics and (2) the estimated useful life of the assets as determined by the depreciation studies. The indices applied to the replacement value are selected because they closely correlate with the major costs of the items comprising the roadway assets. Because of the number of estimates inherent in the depreciation and retirement processes and because it is impossible to precisely estimate each of these variables until a group of assets is completely retired, the Company continually monitors the estimated useful lives of its assets and the accumulated depreciation associated with each asset group to ensure the depreciation rates are appropriate. Gains or losses on dispositions of land or non-group property and abnormal retirements of railroad property are recognized through income. A retirement of railroad property would be considered abnormal if the cause of the retirement is unusual in nature and its actual life is significantly shorter than what would be expected for that group based on the depreciation studies. An abnormal retirement could cause the Company to re-evaluate the estimated useful life of the impacted asset class. | ||
Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value would be reduced to the estimated fair value. Future cash flow estimates for an impairment review would be based on the lowest level of identifiable cash flows, which are the Company’s U.S. and Mexican operations. During the years ended December 31, 2014 and 2013, management did not identify any indicators of impairment. | ||
Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations. As of December 31, 2014 and 2013, the goodwill balance was $13.2 million, which is included in other assets in the consolidated balance sheets. Goodwill is not amortized, but is reviewed at least annually, or more frequently as indicators warrant, for impairment. An impairment loss would be recognized to the extent that the carrying amount exceeds the assets’ fair values. The Company performed its annual impairment review for goodwill as of November 30, 2014 and 2013, and concluded there was no impairment. | ||
Fair Value of Financial Instruments. Non-financial assets and liabilities are recognized at fair value on a nonrecurring basis. These assets and liabilities are measured at fair value on an ongoing basis but are subject to recognition in the financial statements only in certain circumstances. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into three levels based upon the observability of inputs. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value in its entirety requires judgment and considers factors specific to the asset or liability. | ||
Environmental Liabilities. The Company records liabilities for remediation and restoration costs related to past activities when the Company’s obligation is probable and the costs can be reasonably estimated. Costs of future expenditures for environmental remediation are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Costs of ongoing compliance activities related to current operations are expensed as incurred. | ||
Personal Injury Claims. Personal injury claims in excess of self-insurance levels are insured up to certain coverage amounts, depending on the type of claim and year of occurrence. The Company’s personal injury liability is based on actuarial studies performed on an undiscounted basis by an independent third party actuarial firm and reviewed by management. The liability is based on claims filed and an estimate of claims incurred but not yet reported. Adjustments to the liability are reflected as operating expenses in the period in which the adjustments are known. Legal fees related to personal injury claims are recorded in operating expense in the period incurred. | ||
Health and Welfare and Postemployment Benefits. The Company provides certain medical, life and other postemployment benefits to certain active employees and retirees. The Company uses actuaries to assist management in measuring the benefit obligation and cost based on the current plan provisions, employee demographics, and assumptions about financial and demographic factors affecting the probability, timing and amount of expected future benefit payments. Significant assumptions include the discount rate, rate of increase in compensation levels, and the health care cost trend rate. Actuarial gains and losses determined at the measurement date (December 31) are recognized immediately in the consolidated statements of income. | ||
Share-Based Compensation. The Company accounts for all share-based compensation in accordance with fair value recognition provisions. Under this method, compensation expense is measured at grant date fair value net of estimated forfeitures, and is recognized over the requisite service period in which the award is earned. | ||
The Company issues treasury stock to settle share-based awards. The Company does not intend to repurchase any shares in 2015 to provide shares to issue as share-based awards; however, management frequently evaluates the appropriateness of the level of shares outstanding. | ||
Income Taxes. Deferred income tax effects of transactions reported in different periods for financial reporting and income tax return purposes are recorded under the liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. In addition, the Company has not provided U.S. federal income taxes on the undistributed operating earnings of its foreign investments since the earnings will be reinvested indefinitely or the earnings will be remitted in a tax-free transaction. | ||
The Company has recognized a deferred tax asset, net of a valuation allowance, for net operating loss and tax credit carryovers. The Company projects sufficient future taxable income to realize the deferred tax asset recorded less the valuation allowance. These projections take into consideration assumptions about inflation rates, currency fluctuations, future income and future capital expenditures. If assumptions or actual conditions change, the deferred tax asset, net of the valuation allowance, will be adjusted to properly reflect the expected tax benefit. | ||
New Accounting Pronouncements | ||
Effective January 1, 2014, the Company adopted, on a prospective basis, ASU No. 2013-11, Income Taxes, issued by the Financial Accounting Standards Board (FASB), related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance requires, unless certain conditions exists, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled in exchange for those goods or services. The standard will be effective for the Company beginning in the first quarter of 2017 and early adoption is not permitted. The new standard permits the use of either the retrospective or cumulative effect transition method on adoption. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||
Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share adjusts basic earnings per common share for the effects of potentially dilutive common shares, if the effect is not anti-dilutive. Potentially dilutive common shares include the dilutive effects of shares issuable under the Stock Option and Performance Award Plan and shares issuable upon the conversion of preferred stock to common stock. | ||||||||||||
The following table reconciles the basic earnings per share computation to the diluted earnings per share computation (in millions, except share and per share amounts): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income available to common stockholders for purposes of computing basic and diluted earnings per share | $ | 502.4 | $ | 351.2 | $ | 377.1 | ||||||
Weighted-average number of shares outstanding (in thousands): | ||||||||||||
Basic shares | 110,163 | 109,973 | 109,712 | |||||||||
Effect of dilution | 270 | 367 | 368 | |||||||||
Diluted shares | 110,433 | 110,340 | 110,080 | |||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 4.56 | $ | 3.19 | $ | 3.44 | ||||||
Diluted earnings per share | $ | 4.55 | $ | 3.18 | $ | 3.43 | ||||||
Potentially dilutive shares excluded from the calculation (in thousands): | 2014 | 2013 | 2012 | |||||||||
Stock options excluded as their inclusion would be anti-dilutive | 57 | 57 | — | |||||||||
Lease_Termination_Costs_Notes
Lease Termination Costs (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Leases [Abstract] | |
Lease Termination Costs [Text Block] | Lease Termination Costs |
During 2014, the Company purchased $300.7 million of equipment under existing operating leases and replacement equipment as certain operating leases expired. During 2014, the Company recognized $38.3 million of lease termination costs (included in operating expenses) due to the early termination of certain operating leases and the related purchase of the equipment. The Company did not incur lease termination costs during 2013 or 2012. |
Property_and_Equipment_includi
Property and Equipment (including Concession Assets) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Property and Equipment (including Concession Assets) | Property and Equipment (including Concession Assets) | ||||||||||||||
The following tables list the major categories of property and equipment, including concession assets, as well as the weighted-average composite depreciation rate for each category (in millions): | |||||||||||||||
As of December 31, 2014 | Cost | Accumulated | Net Book | Depreciation | |||||||||||
Depreciation | Value | Rates for 2014 | |||||||||||||
Land | $ | 216.8 | $ | — | $ | 216.8 | N/A | ||||||||
Concession land rights | 141.2 | (22.3 | ) | 118.9 | 1 | % | |||||||||
Rail and other track material | 1,707.60 | (361.1 | ) | 1,346.50 | 1.9-3.2% | ||||||||||
Ties | 1,484.70 | (312.6 | ) | 1,172.10 | 2.0-4.2% | ||||||||||
Grading | 839.6 | (137.9 | ) | 701.7 | 1 | % | |||||||||
Bridges and tunnels | 669.5 | (123.8 | ) | 545.7 | 1.2 | % | |||||||||
Ballast | 649.8 | (170.0 | ) | 479.8 | 2.7-4.8% | ||||||||||
Other (a) | 943.5 | (275.6 | ) | 667.9 | 3.1 | % | |||||||||
Total road property | 6,294.70 | (1,381.0 | ) | 4,913.70 | 2.8 | % | |||||||||
Locomotives | 1,310.30 | (238.3 | ) | 1,072.00 | 4.7 | % | |||||||||
Freight cars | 610.6 | (98.3 | ) | 512.3 | 5.3 | % | |||||||||
Other equipment | 59 | (18.5 | ) | 40.5 | 8.2 | % | |||||||||
Total equipment | 1,979.90 | (355.1 | ) | 1,624.80 | 5 | % | |||||||||
Technology and other | 160.9 | (121.9 | ) | 39 | 13.2 | % | |||||||||
Construction in progress | 241.5 | — | 241.5 | N/A | |||||||||||
Total property and equipment (including concession assets) | $ | 9,035.00 | $ | (1,880.3 | ) | $ | 7,154.70 | N/A | |||||||
_____________ | |||||||||||||||
(a) | Other includes signals, buildings and other road assets. | ||||||||||||||
As of December 31, 2013 | Cost | Accumulated | Net Book | Depreciation | |||||||||||
Depreciation | Value | Rates for 2013 | |||||||||||||
Land | $ | 216.4 | $ | — | $ | 216.4 | N/A | ||||||||
Concession land rights | 141.2 | (20.9 | ) | 120.3 | 1 | % | |||||||||
Rail and other track material | 1,617.80 | (341.1 | ) | 1,276.70 | 1.8-3.1% | ||||||||||
Ties | 1,425.10 | (303.7 | ) | 1,121.40 | 2.0-4.3% | ||||||||||
Grading | 829.6 | (129.7 | ) | 699.9 | 1.1 | % | |||||||||
Bridges and tunnels | 606.4 | (116.5 | ) | 489.9 | 1.2 | % | |||||||||
Ballast | 602.7 | (155.2 | ) | 447.5 | 2.6-4.8% | ||||||||||
Other (a) | 874.1 | (252.8 | ) | 621.3 | 2.9 | % | |||||||||
Total road property | 5,955.70 | (1,299.0 | ) | 4,656.70 | 2.7 | % | |||||||||
Locomotives | 1,017.40 | (193.2 | ) | 824.2 | 5 | % | |||||||||
Freight cars | 362.2 | (78.9 | ) | 283.3 | 3.9 | % | |||||||||
Other equipment | 56.6 | (14.1 | ) | 42.5 | 7.4 | % | |||||||||
Total equipment | 1,436.20 | (286.2 | ) | 1,150.00 | 4.8 | % | |||||||||
Technology and other | 152.8 | (111.3 | ) | 41.5 | 11.6 | % | |||||||||
Construction in progress | 171.4 | — | 171.4 | N/A | |||||||||||
Total property and equipment (including | $ | 8,073.70 | $ | (1,717.4 | ) | $ | 6,356.30 | N/A | |||||||
concession assets) | |||||||||||||||
_____________ | |||||||||||||||
(a) | Other includes signals, buildings and other road assets. | ||||||||||||||
Concession assets, net of accumulated amortization of $483.1 million and $444.1 million, totaled $2,007.6 million and $1,951.0 million at December 31, 2014 and 2013, respectively. | |||||||||||||||
The Company capitalized $0.9 million, $1.1 million, and $0.9 million of interest for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||
Depreciation and amortization of property and equipment (including concession assets) totaled $258.1 million, $223.3 million and $198.8 million, for 2014, 2013, and 2012, respectively. |
Other_Balance_Sheet_Captions
Other Balance Sheet Captions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Balance Sheet Captions [Abstract] | ||||||||
Other Balance Sheet Captions | Other Balance Sheet Captions | |||||||
Accounts Payable and Accrued Liabilities. Accounts payable and accrued liabilities included the following items at December 31 (in millions): | ||||||||
2014 | 2013 | |||||||
Accounts payable | $ | 215 | $ | 200.5 | ||||
Accrued wages and vacation | 75.1 | 72.7 | ||||||
Derailments, personal injury and other claim provisions | 42.4 | 47.9 | ||||||
Dividends payable | 31 | 23.8 | ||||||
Income and other taxes | 24.8 | 18.5 | ||||||
Other | 35.6 | 35.2 | ||||||
Accounts payable and accrued liabilities | $ | 423.9 | $ | 398.6 | ||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements |
The Company’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in Note 2 — “Significant Accounting Policies”. As of December 31, 2014, the Company’s derivative financial instruments are measured at fair value on a recurring basis and consist of foreign currency forward contract agreements, which are classified as Level 2 valuations. The Company determines the fair value of its derivative financial instrument positions based upon pricing models using inputs observed from actively quoted markets and also takes into consideration the contract terms as well as other inputs, including market currency exchange rates. The fair value of the foreign currency forward contract liabilities was $4.3 million as of December 31, 2014. There were no foreign currency forward contract agreements outstanding as of December 31, 2013. | |
The Company’s short-term financial instruments include cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings. The carrying value of the short-term financial instruments approximates their fair value. | |
The fair value of the Company’s debt is estimated using quoted market prices when available. When quoted market prices are not available, fair value is estimated based on current market interest rates for debt with similar maturities and credit quality. The fair value of the Company’s debt was $1,884.1 million and $2,082.9 million at December 31, 2014 and 2013, respectively. The carrying value was $1,865.8 million and $2,188.9 million at December 31, 2014 and 2013, respectively. If the Company’s debt were measured at fair value, the fair value measurements of the individual debt instruments would have been classified as either Level 1 or Level 2 in the fair value hierarchy. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||
In general, the Company enters into derivative transactions in certain situations based on management’s assessment of current market conditions and perceived risks. Management intends to respond to evolving business and market conditions and in doing so, may enter into such transactions as deemed appropriate. | ||||||||||||||
Credit Risk. As a result of the use of derivative instruments, the Company is exposed to counterparty credit risk. The Company manages this risk by limiting its counterparties to large financial institutions which meet the Company’s credit rating standards and have an established banking relationship with the Company. As of December 31, 2014, the Company did not expect any losses as a result of default of its counterparties. | ||||||||||||||
Foreign Currency Forward Contracts. The Company’s Mexican subsidiaries have net U.S. dollar-denominated liabilities (primarily debt) which, for Mexican income tax purposes, are subject to periodic revaluation based on changes in the value of the Mexican peso against the U.S. dollar. This revaluation creates fluctuations in the Company’s Mexican cash tax obligation and the effective income tax rate. The Company has entered into foreign currency forward contracts to hedge its exposure to this risk. | ||||||||||||||
In the first quarter of 2014, the Company entered into foreign currency forward contracts with an aggregate notional amount of $345.0 million. These contracts matured on December 31, 2014, and obligated the Company to purchase a total of Ps.4,642.5 million at a weighted-average exchange rate of Ps.13.46 to each U.S. dollar. During October and December 2014, the Company entered into offsetting contracts with an aggregate notional amount of $30.0 million and $291.4 million, respectively. These offsetting contracts matured on December 31, 2014, and obligated the Company sell a total of Ps.403.7 million and Ps.4,238.8 million at a weighted-average exchange rate of Ps.13.46 and Ps.14.57 to each U.S. dollar, respectively. | ||||||||||||||
In December 2014, the Company entered into additional foreign currency forward contracts with an aggregate notional amount of $300.0 million. These contracts matured on January 15, 2015 and obligated the Company to purchase a total of Ps.4,364.7 million at a weighted-average rate of Ps.14.55 to each U.S. dollar. During January 2015, the Company entered into offsetting contracts with an aggregate notional amount of $298.8 million. These offsetting contracts matured on January 15, 2015, and obligated the Company to sell a total of Ps.4,364.7 million at a weighted-average exchange rate of Ps.14.61 to each U.S. dollar. | ||||||||||||||
In the first half of 2013, the Company entered into foreign currency forward contracts with an aggregate notional amount of $325.0 million. These contracts matured on December 31, 2013, and obligated the Company to purchase a total of Ps.4,202.3 million at a weighted-average exchange rate of Ps.12.93 to each U.S. dollar. During December 2013, the Company entered into offsetting contracts with an aggregate notional amount of $324.3 million. These offsetting contracts matured on December 31, 2013, and obligated the Company sell a total of Ps.4,202.3 million at a weighted-average exchange rate of Ps.12.96 to each U.S. dollar. | ||||||||||||||
In 2014 and 2013, the Company did not designate any of the foreign currency forward contracts as hedging instruments for accounting purposes, and the related net loss was recognized in foreign exchange gain (loss) within the consolidated statements of comprehensive income. | ||||||||||||||
As of December 31, 2013, the Company had no outstanding foreign currency forward contracts. | ||||||||||||||
The following table presents the fair value of derivative instruments included in the consolidated balance sheets (in millions): | ||||||||||||||
Derivative Liabilities | ||||||||||||||
Balance Sheet Location | December 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign currency forward contracts | Accounts payable and accrued liabilities | $ | 4.3 | $ | — | |||||||||
Total derivative liabilities | $ | 4.3 | $ | — | ||||||||||
The following table presents the effects of derivative instruments on the consolidated statements of income for the years ended December 31 (in millions): | ||||||||||||||
Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Recognized in Income on Derivative | |||||||||||||
Derivatives not designated as hedging instruments: | 2014 | 2013 | 2012 | |||||||||||
Foreign currency forward contracts | Foreign exchange gain (loss) | $ | (27.9 | ) | $ | (0.7 | ) | $ | — | |||||
Total | $ | (27.9 | ) | $ | (0.7 | ) | $ | — | ||||||
ShortTerm_Borrowings
Short-Term Borrowings | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Short-Term Borrowings | ||||||||
2014 | 2013 | |||||||
Commercial paper | $ | 150.1 | $ | — | ||||
Other short-term borrowings | 300 | — | ||||||
Total short-term borrowings | $ | 450.1 | $ | — | ||||
Commercial Paper. KCSR and KCSM’s commercial paper programs generally serve as the primary means of short-term funding. As of December 31, 2014, KCSR had $150.1 million of commercial paper outstanding at a weighted-average interest rate of 0.716% and KCSM had no commercial paper outstanding. | ||||||||
Short-Term Borrowing. On October 22, 2014, Kansas City Southern International Investments, S.A. de C.V. ("KCSII"), a wholly-owned subsidiary of the Company, KCSR, and certain other subsidiaries of the Company that guaranty KCSR’s Second Amended and Restated Credit Agreement dated as of November 21, 2012 (together with the Company and KCSR, the “Guarantors”), entered into a Credit Agreement dated as of October 22, 2014 (the "KCSII Credit Agreement") with The Bank of Tokyo-Mitsubishi UFJ, Ltd., as lender ("BTM"). Pursuant to the terms of the KCSII Credit Agreement, BTM agreed to extend credit in an aggregate principal amount of up to $300.0 million. KCSII borrowed $100.0 million on October 22, 2014, and borrowed an additional $200.0 million on December 15, 2014. The loans bear interest at weighted average rate of 1.49%. Repayment of each loan is due 90 days after each borrowing date of such loan, and each loan may be prepaid by KCSII with the prior written consent of the Lender. The proceeds of these loans were used to reduce commercial paper borrowings and for general corporate purposes. On January 22, 2015, KCSII repaid $100.0 million of this borrowing using available cash. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt | |||||||||||||||||||||||||||
Long-term debt at December 31 (in millions): | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
KCSR | ||||||||||||||||||||||||||||
Revolving credit facility, variable interest rate, due 2017 | $ | — | $ | — | ||||||||||||||||||||||||
Term loan | — | 245.3 | ||||||||||||||||||||||||||
4.30% senior notes, due 2043 | 446 | 445.9 | ||||||||||||||||||||||||||
3.85% senior notes, due 2023 | 199.8 | 199.7 | ||||||||||||||||||||||||||
RRIF loan, 2.96%, due serially to 2037 | 50.4 | 52 | ||||||||||||||||||||||||||
Capital lease obligations, due serially to 2019 | 8.2 | 9.8 | ||||||||||||||||||||||||||
Other debt obligations | 0.2 | 0.4 | ||||||||||||||||||||||||||
Tex-Mex | ||||||||||||||||||||||||||||
RRIF loan, 4.29%, due serially to 2030 | 37.8 | 39.4 | ||||||||||||||||||||||||||
KCSM | ||||||||||||||||||||||||||||
Revolving credit facility, variable interest rate, due 2017 | — | — | ||||||||||||||||||||||||||
8.0% senior notes, due 2018 | — | 62.3 | ||||||||||||||||||||||||||
2.35% senior notes, due 2020 | 274.7 | 274.7 | ||||||||||||||||||||||||||
3.0% senior notes, due 2023 | 448.4 | 448.2 | ||||||||||||||||||||||||||
Floating rate senior notes, variable interest rate, 0.9331% at December 31, 2014, due 2016 | 250 | 250 | ||||||||||||||||||||||||||
5.737% financing agreement, due 2023 | 39.2 | 43.8 | ||||||||||||||||||||||||||
6.195% financing agreement, due 2023 | 30.4 | 33.9 | ||||||||||||||||||||||||||
9.310% loan agreements, due 2020 | 66.9 | 74.6 | ||||||||||||||||||||||||||
Capital lease obligations, due serially to 2024 | 13.6 | 7.4 | ||||||||||||||||||||||||||
Other debt obligations | — | 1.3 | ||||||||||||||||||||||||||
KCS | ||||||||||||||||||||||||||||
Other debt obligations | 0.2 | 0.2 | ||||||||||||||||||||||||||
Total | 1,865.80 | 2,188.90 | ||||||||||||||||||||||||||
Less: Debt due within one year | 24.8 | 332 | ||||||||||||||||||||||||||
Long-term debt | $ | 1,841.00 | $ | 1,856.90 | ||||||||||||||||||||||||
KCSR Debt | ||||||||||||||||||||||||||||
Revolving Credit Facility and Term Loans. On January 30, 2014, the Company, KCSR and certain other subsidiaries of the Company that guaranty the KCSR credit agreement entered into an amendment to the KCSR credit agreement which eliminated certain representations as a condition to borrowing under the revolving credit facility (the “KCSR Revolving Facility”), provided for the prepayment of all outstanding term loans (the “Term Loan”) under the KCSR credit agreement on or before February 13, 2014, and increased the borrowing capacity under the KCSR Revolving Facility to $450.0 million. In addition, on January 30, 2014, the Company and KCSR, entered into agreements to establish a $450.0 million commercial paper program for KCSR (the “KCSR Commercial Paper Program”). The KCSR Revolving Facility serves as a backstop for the KCSR Commercial Paper Program, which generally serves as KCSR’s primary means of short-term funding. | ||||||||||||||||||||||||||||
KCSR’s credit agreement also consists of a letter of credit facility of $25.0 million (the “Letter of Credit Facility”) and a swing line facility of up to $15.0 million (the “Swing Line Facility”). The Letter of Credit Facility and the Swing Line Facility each constitute usage under the Revolving Facility. | ||||||||||||||||||||||||||||
In addition, KCSR’s credit agreement consisted of a $300.0 million term loan credit facility (“Term Loan Facility”) and a $275.0 million term loan A-2 credit facility (“Term Loan A-2”). On April 29, 2013, KCSR repaid the outstanding $277.5 million principal amount of the Term Loan Facility using a portion of the net proceeds from the issuance of $450.0 million principal amount of the 4.30% senior unsecured notes due May 15, 2043 (the “4.30% Senior Notes”). On February 7, 2014, KCSR borrowed $175.0 million under the KCSR Revolving Facility and used the proceeds and cash on hand to repay the outstanding $245.3 million principal amount of the KCSR Term Loan A-2. On February 14, 2014, KCSR repaid the outstanding $175.0 million principal amount of the KCSR Revolving Facility using proceeds received under the KCSR Commercial Paper Program. | ||||||||||||||||||||||||||||
The KCSR credit agreement is guaranteed by KCS, together with KCSR and certain subsidiaries named therein as guarantors (the “Subsidiary Guarantors”) and matures on November 15, 2017. Under the KCSR credit agreement, in the event that KCSR’s senior unsecured debt ratings would fall below investment grade at all three primary rating agencies, collateral would be re-pledged and the facilities would revert to secured obligations. In addition, in the event that KCSR achieves a senior unsecured debt rating of BBB/Baa2 or higher by at least two of the three primary rating agencies, the floating interest rates paid on the KCSR Revolving Facility would thereafter be determined by KCSR’s senior unsecured credit rating rather than by KCSR’s leverage ratio. Depending on KCSR’s credit rating during the life of the KCSR credit agreement, the margin KCSR would pay above the London Interbank Offered Rate (“LIBOR”) at any point would be equal to or lower than 1.50%. | ||||||||||||||||||||||||||||
The KCSR credit agreement also contains representations, warranties, covenants and events of default that are customary for credit agreements of this type. The occurrence of an event of default could result in the acceleration of the repayment of any outstanding principal balance of the Revolving Facility and KCSR Commercial Paper Program. | ||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, KCSR had $299.9 million and $200.0 million available under the Revolving Facility, respectively, with no outstanding borrowings. | ||||||||||||||||||||||||||||
4.30% Senior Notes. On April 29, 2013, KCSR issued the 4.30% Senior Notes due May 15, 2043, which bear interest semiannually at a fixed annual rate of 4.30%. The 4.30% Senior Notes were issued at a discount to par value, resulting in a $4.1 million discount and a yield to maturity of 4.355%. The net proceeds from the offering were used to fund the prepayment of the Term Loan Facility, to finance the purchase of certain leased equipment and for other general corporate purposes. The 4.30% Senior Notes are redeemable at KCSR’s option, in whole or in part, prior to November 15, 2042, by paying the greater of either (i) 100% of the principal amount of the 4.30% Senior Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the then-current U.S. Treasury rate plus 25 basis points, plus accrued interest to but excluding the redemption date. On or after November 15, 2042, the 4.30% Senior Notes may be redeemed at KCSR’s option, in whole or in part, at any time at a redemption price equal to 100% of the principal amount, plus any accrued and unpaid interest. | ||||||||||||||||||||||||||||
3.85% Senior Notes. On October 29, 2013, KCSR issued $200.0 million principal amount of 3.85% senior unsecured notes due November 15, 2023 (the “3.85% Senior Notes), which bear interest semiannually at a fixed annual rate of 3.85%. The 3.85% senior notes were issued at a discount to par value, resulting in a $0.3 million discount and a yield to maturity of 3.866%. The net proceeds from the offering were used to finance the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired, and pay all fees and expenses incurred in connection with the 3.85% Senior Notes offering. Any net proceeds not used for those purposes were used for general corporate purposes. The 3.85% Senior Notes are redeemable at KCSR’s option, in whole or in part, prior to August 15, 2023, by paying the greater of either (i) 100% of the principal amount of the 3.85% Senior Notes to redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the then-current U.S. Treasury rate plus 20 basis points, plus accrued interest to but excluding the redemption date. On or after August 15, 2023, the 3.85% Senior Notes may be redeemed at KCSR’s option, in whole or in part, at any time at a redemption price equal to 100% of the principal amount, plus any accrued and unpaid interest. | ||||||||||||||||||||||||||||
All of KCSR’s senior notes described above are unconditionally guaranteed, jointly and severally, on an unsecured senior basis, by KCS and certain domestic subsidiaries of KCS that guarantee the KCSR credit agreement (the “Note Guarantors”). KCSR’s senior notes and the note guarantees rank pari passu in right of payment with KCSR’s, KCS’s and the Note Guarantors’ existing and future unsecured, unsubordinated obligations. In addition, KCSR’s senior notes include certain covenants which are customary for these types of debt instruments issued by borrowers with similar credit ratings. | ||||||||||||||||||||||||||||
KCSR RRIF Loan Agreement. On February 21, 2012, KCSR, as borrower, entered into a financing agreement with the United States of America represented by the Secretary of Transportation acting through the Administrator of the Federal Railroad Administration (“FRA”). | ||||||||||||||||||||||||||||
The financing agreement provides KCSR with a 25-year, $54.6 million loan under the Railroad Rehabilitation and Improvement Financing Program (the “KCSR RRIF Loan”). The proceeds of the KCSR RRIF Loan were used to reimburse KCSR for 80% of the purchase price of thirty new locomotives (the “Locomotives”) acquired by KCSR in the fourth quarter of 2011. The outstanding principal balance bears interest at 2.96% per annum. KCSR is required to make quarterly principal and interest payments on the KCSR RRIF Loan commencing March 15, 2012, except for the first payment that was comprised solely of interest accrued from the date the funds were advanced to KCSR, which was February 24, 2012. | ||||||||||||||||||||||||||||
The obligations under the financing agreement are secured by a first priority security interest in the Locomotives and certain related rights. In addition, the Company has agreed to guarantee repayment of the amounts due under the financing agreement and certain related agreements. | ||||||||||||||||||||||||||||
The financing agreement contains representations, warranties, covenants and events of default that are similar to those contained in other KCSR debt agreements. The occurrence of an event of default could result in the acceleration of the repayment of any outstanding principal balance of the KCSR RRIF Loan. | ||||||||||||||||||||||||||||
Tex-Mex Debt | ||||||||||||||||||||||||||||
RRIF Loan Agreement. On June 28, 2005, Tex-Mex entered into an agreement with the FRA to borrow $50.0 million to be used for infrastructure improvements in order to accommodate growing freight rail traffic related to the NAFTA corridor. The note bears interest at 4.29% annually and the principal balance amortizes quarterly with a final maturity of July 13, 2030. The loan was made under the Railroad Rehabilitation and Improvement Financing Program administered by the FRA. The loan is guaranteed by Mexrail, which has issued a pledge agreement in favor of the lender equal to the gross revenues earned by Mexrail on per-car fees on traffic crossing the International Rail Bridge in Laredo, Texas. In addition, the Company has agreed to guarantee the scheduled principal payment installments due to the FRA from Tex-Mex under the loan agreement on a rolling five-year basis. | ||||||||||||||||||||||||||||
KCSM Debt | ||||||||||||||||||||||||||||
Revolving Credit Facility. KCSM’s amended and restated credit agreement consists of an unsecured revolving credit facility up to $200.0 million (the “KCSM Revolving Facility”), a letter of credit facility up to $15.0 million (the “KCSM letter of Credit Facility”), and a swing line facility up to $15.0 million (the “KCSM Swing Line Facility”). The KCSM Letter of Credit Facility and the KCSM Swing Line Facility each constitute usage under the KCSM Revolving Facility. The KCSM credit agreement matures on November 15, 2017. | ||||||||||||||||||||||||||||
On January 30, 2014, KCSM and certain subsidiaries of KCSM that guaranty the KCSM credit agreement entered into an amendment to the KCSM credit agreement which eliminated certain representations as a condition to borrowing under the KCSM Revolving Facility and provided for same-day availability of borrowed funds if desired by KCSM. Also on January 30, 2014, KCSM entered into agreements to establish a $200.0 million commercial paper program for KCSM (the “KCSM Commercial Paper Program”). The KCSM Revolving Facility serves as a backstop for the KCSM Commercial Paper Program, which generally serves as KCSM’s primary means of short-term funding. | ||||||||||||||||||||||||||||
KCSM and certain of its subsidiaries have agreed to subordinate payment of certain intercompany debt, certain KCSM subsidiaries guaranteed repayment of the amounts due under the KCSM credit agreement (up to the amount permitted by KCSM’s outstanding indentures) and certain equity interests as defined in the KCSM credit agreement were pledged to secure obligations under the KCSM credit agreement. | ||||||||||||||||||||||||||||
Under KCSM’s credit agreement, in the event that KCSM’s senior unsecured debt ratings were subsequently to fall below investment grade at all three primary rating agencies, collateral would be re-pledged and the facility would revert to a secured obligation. In addition, in the event that KCSM achieved a senior unsecured debt rating of BBB/Baa2 or higher by at least two of the three primary rating agencies, the floating interest rates paid on the KCSM credit agreement would thereafter be determined by KCSM’s senior unsecured credit rating rather than by KCSM’s leverage ratio. Depending on KCSM’s credit rating during the life of the KCSM credit agreement, the margin KCSM would pay above the LIBOR at any point would be equal to or lower than 1.75%. | ||||||||||||||||||||||||||||
The KCSM credit agreement contains representations, warranties, covenants and events of default that are customary for credit agreements of this type. The occurrence of an event of default could result in the acceleration of the repayment of any outstanding principal balance of the KCSM Revolving Facility. | ||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, KCSM had no amount outstanding under the KCSM Revolving Facility. | ||||||||||||||||||||||||||||
KCSM 8.0% Senior Notes. On January 22, 2010, KCSM issued $300.0 million principal amount of 8.0% senior unsecured notes due February 1, 2018 (the “KCSM 8.0% Senior Notes”), which bore interest semiannually at a fixed annual rate of 8.0%. | ||||||||||||||||||||||||||||
Through May 8, 2013, KCSM purchased $237.2 million principal amount of the tendered KCSM 8.0% Senior Notes, $181.0 million principal amount of the tendered 65/8% senior unsecured notes due December 15, 2020 and $149.7 million principal amount of the tendered 61/8% senior unsecured notes due June 15, 2021 (collectively, the “KCSM Senior Notes Tendered”), in accordance with the terms and conditions of the tender offer using a portion of the proceeds received from the issuance of $275.0 million principal amount of 2.35% senior unsecured notes due May 15, 2020 (the “2.35% Senior Notes”) and $450.0 million principal amount of 3.0% senior unsecured notes due May 15, 2023 (the “3.0% Senior Notes”). | ||||||||||||||||||||||||||||
On February 3, 2014, KCSM redeemed all of the remaining $62.8 million aggregate principal amount of the KCSM 8.0% Senior Notes, at a redemption price (expressed as a percentage of principal amount) of 104%, using a portion of the proceeds from the issuance of $250.0 million principal amount KCSM floating rate senior unsecured notes due October 28, 2016 (the “Floating Rate Senior Notes”), issued in the fourth quarter of 2013. | ||||||||||||||||||||||||||||
2.35% Senior Notes. On May 3, 2013, KCSM issued the 2.35% Senior Notes due May 15, 2020, which bear interest semiannually at a fixed annual rate of 2.35%. The 2.35% Senior Notes were issued at a discount to par value, resulting in a $0.3 million discount and a yield to maturity of 2.368%. KCSM used the net proceeds from the issuance of the 2.35% Senior Notes and the 3.0% Senior Notes to purchase the KCSM Senior Notes Tendered, pay all fees and expenses incurred in connection with the 2.35% Senior Notes and 3.0% Senior Notes offerings and the tender offers, to finance the purchase of certain leased equipment and for other general corporate purposes. The 2.35% Senior Notes are redeemable at KCSM’s option, in whole or in part, prior to April 15, 2020, by paying the greater of either (i) 100% of the principal amount of the 2.35% Senior Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the then-current U.S. Treasury rate plus 20 basis points, plus accrued interest and any additional amounts to but excluding the redemption date. On or after April 15, 2020, the 2.35% Senior Notes may be redeemed at KCSM’s option, in whole or in part, at any time at a redemption price equal to 100% of the principal amount, plus any accrued and unpaid interest. In addition, the notes are redeemable, in whole but not in part, at KCSM’s option at their principal amount, plus any accrued unpaid interest in the event of certain changes in the Mexican withholding tax rate. | ||||||||||||||||||||||||||||
3.0% Senior Notes. On May 3, 2013, KCSM issued the 3.0% Senior Notes due May 15, 2023, which bear interest semiannually at a fixed annual rate of 3.0%. The 3.0% Senior Notes were issued at a discount to par value, resulting in a $1.9 million discount and a yield to maturity of 3.048%. KCSM used the net proceeds from the issuance of the 3.0% Senior Notes and the 2.35% Senior Notes to purchase the KCSM Senior Notes Tendered, pay all fees and expenses incurred in connection with the 2.35% Senior Notes and 3.0% Senior Notes offerings and the tender offers, to finance the purchase of certain leased equipment and for other general corporate purposes. The 3.0% Senior Notes are redeemable at KCSM’s option, in whole or in part, prior to February 15, 2023, by paying the greater of either (i) 100% of the principal amount of the 3.0% Senior Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the then-current U.S. Treasury rate plus 20 basis points, plus accrued interest and any additional amounts to but excluding the redemption date. On or after February 15, 2023, the 3.0% Senior Notes may be redeemed at KCSM’s option, in whole or in part, at any time at a redemption price equal to 100% of the principal amount, plus any accrued and unpaid interest. In addition, the notes are redeemable, in whole but not in part, at KCSM’s option at their principal amount, plus any accrued unpaid interest in the event of certain changes in the Mexican withholding tax rate. | ||||||||||||||||||||||||||||
Floating Rate Senior Notes. On October 29, 2013, KCSM issued the Floating Rate Senior Notes due October 28, 2016, which bear interest quarterly at a rate equal to the three-month U.S. dollar LIBOR plus 70 basis points per annum. KCSM used the net proceeds from the issuance of the Floating Rate Senior Notes to pay fees and expenses related to the issuance of the Floating Rate Senior Notes and redeem the outstanding $29.4 million principal amount of the 61/8% Senior Notes. In addition, the Company used the remaining net proceeds to redeem the outstanding $62.8 million principal amount of the KCSM 8.0% Senior Notes during the first quarter of 2014 and to finance the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired. Any net proceeds not used for these purposes were used for general corporate purposes. The notes are redeemable, in whole but not in part, at KCSM’s option at any time at a redemption price of 100% of their principal amount, plus any accrued unpaid interest in the event of certain changes in the Mexican withholding tax rate. | ||||||||||||||||||||||||||||
All of KCSM’s senior notes described above are denominated in U.S. dollars; are unsecured, unsubordinated obligations; rank pari passu in right of payment with KCSM’s existing and future unsecured, unsubordinated obligations and are senior in right of payment to KCSM’s future subordinated indebtedness. In addition, KCSM’s senior notes include certain covenants which are customary for these types of debt instruments issued by borrowers with similar credit ratings and restrict or prohibit certain actions. | ||||||||||||||||||||||||||||
KCSM Locomotive Financing | ||||||||||||||||||||||||||||
5.737% Financing Agreement. On February 26, 2008, KCSM entered into a financing agreement with Export Development Canada (“EDC”) for an aggregate principal amount of $72.8 million. KCSM used the proceeds to finance 85.0% of the purchase price of forty new SD70ACe locomotives purchased by KCSM in late 2007 and early 2008. KCSM granted EDC a security interest in the locomotives to secure the loan. The financing agreement requires KCSM to make thirty equal semi-annual principal payments of approximately $2.4 million plus interest at an annual rate of 5.737%, with the final payment due and payable on February 28, 2023. | ||||||||||||||||||||||||||||
6.195% Financing Agreement. On September 24, 2008, KCSM entered into a financing agreement with DVB Bank AG (“DVB”) for an aggregate principal amount of $52.2 million. KCSM used the proceeds to finance approximately 80% of the purchase price of twenty-nine ES44AC locomotives purchased by KCSM in June 2008. KCSM granted DVB a security interest in the locomotives to secure the loan. The financing agreement requires KCSM to make sixty equal quarterly principal payments plus interest at an annual rate of 6.195%, with the final payment due and payable on September 29, 2023. | ||||||||||||||||||||||||||||
9.310% Loan Agreements. On September 1, 2011, KCSM, as borrower, entered into five Loan Agreements (each a “Loan Agreement”, and collectively, the “Loan Agreements”) with General Electric Capital Corporation, as lender (“GE”), each with a principal amount of approximately $18.2 million. KCSM used the loan proceeds to finance approximately 88% of the purchase price of seventy-five GE AC4400 CW locomotives (the “Locomotives”) purchased by KCSM from GE on September 1, 2011. The Locomotives were previously leased by KCSM from GE pursuant to a Lease Agreement dated April 30, 1998. The Lease Agreement, which had been accounted for as an operating lease, was terminated with the purchase of the Locomotives by KCSM. To secure the loans from GE, KCSM transferred legal ownership of the Locomotives to five irrevocable trusts established by KCSM to which GE is the primary beneficiary and KCSM has a right of reversion upon satisfaction of the obligations of the Loan Agreements. | ||||||||||||||||||||||||||||
Each Loan Agreement requires KCSM to make thirty-eight quarterly principal payments plus interest at an annual rate of 9.31%, which approximates the implicit interest rate in the Lease Agreement. The final payments are due and payable on December 15, 2020. | ||||||||||||||||||||||||||||
KCSM’s locomotive financing agreements contain representations, warranties and covenants typical of such equipment loan agreements. Events of default in the financing agreements include, but are not limited to, certain payment defaults, certain bankruptcy and liquidation proceedings and the failure to perform any covenants or agreements contained in the financing agreements. Any event of default could trigger acceleration of KCSM’s payment obligations under the terms of the financing agreements. | ||||||||||||||||||||||||||||
Debt Covenants Compliance | ||||||||||||||||||||||||||||
The Company was in compliance with all of its debt covenants as of December 31, 2014. | ||||||||||||||||||||||||||||
Other Debt Provisions | ||||||||||||||||||||||||||||
Change in Control Provisions. Certain loan agreements and debt instruments entered into or guaranteed by the Company and its subsidiaries provide for default in the event of a specified change in control of the Company or particular subsidiaries of the Company. | ||||||||||||||||||||||||||||
Leases and Debt Maturities | ||||||||||||||||||||||||||||
The Company leases transportation equipment, as well as office and other operating facilities, under various capital and operating leases. Rental expenses under operating leases were $76.4 million, $106.7 million, and $108.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. Operating leases that contain scheduled rent adjustments are recognized on a straight-line basis over the term of the lease. Contingent rentals and sublease rentals were not significant. Minimum annual payments and present value thereof under existing capital leases, other debt maturities and minimum annual rental commitments under non-cancelable operating leases are as follows (in millions): | ||||||||||||||||||||||||||||
Long- | Capital Leases | Total | ||||||||||||||||||||||||||
Term | Debt | |||||||||||||||||||||||||||
Years | Debt | Minimum | Less | Net | Operating Leases | Total | ||||||||||||||||||||||
Lease | Interest | Present | ||||||||||||||||||||||||||
Payments | Value | |||||||||||||||||||||||||||
2015 | $ | 20 | $ | 6.8 | $ | 2 | $ | 4.8 | $ | 24.8 | $ | 74.5 | $ | 99.3 | ||||||||||||||
2016 | 270.8 | 6.3 | 1.7 | 4.6 | 275.4 | 67.6 | 343 | |||||||||||||||||||||
2017 | 22 | 4 | 1.3 | 2.7 | 24.7 | 57.3 | 82 | |||||||||||||||||||||
2018 | 35.2 | 3.9 | 1.1 | 2.8 | 38 | 37.3 | 75.3 | |||||||||||||||||||||
2019 | 15.5 | 2.7 | 0.8 | 1.9 | 17.4 | 30.5 | 47.9 | |||||||||||||||||||||
Thereafter | 1,480.50 | 6.7 | 1.7 | 5 | 1,485.50 | 98.5 | 1,584.00 | |||||||||||||||||||||
Total | $ | 1,844.00 | $ | 30.4 | $ | 8.6 | $ | 21.8 | $ | 1,865.80 | $ | 365.7 | $ | 2,231.50 | ||||||||||||||
In the normal course of business, the Company enters into long-term contractual requirements for future goods and services needed for the operations of the business. Such commitments are not in excess of expected requirements and are not reasonably likely to result in performance penalties or payments that would have a material adverse effect on the Company’s liquidity. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||||
Current income tax expense represents the amounts expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. | |||||||||||||||||||||
Tax Expense. Income tax expense consists of the following components (in millions): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | (2.5 | ) | $ | 6 | $ | 2.8 | ||||||||||||||
State and local | 1.2 | 1.9 | 0.7 | ||||||||||||||||||
Foreign | 70 | 79.2 | 36.2 | ||||||||||||||||||
Total current | 68.7 | 87.1 | 39.7 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 112.6 | 99 | 99.2 | ||||||||||||||||||
State and local | 16.9 | 11.9 | (7.4 | ) | |||||||||||||||||
Foreign | 10.6 | 0.3 | 105.5 | ||||||||||||||||||
Total deferred | 140.1 | 111.2 | 197.3 | ||||||||||||||||||
Total income tax expense | $ | 208.8 | $ | 198.3 | $ | 237 | |||||||||||||||
Income before income taxes consists of the following (in millions): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Income before income taxes: | |||||||||||||||||||||
U.S. | $ | 341.8 | $ | 319.2 | $ | 282.8 | |||||||||||||||
Foreign | 371.3 | 232.4 | 333.6 | ||||||||||||||||||
Total income before income taxes | $ | 713.1 | $ | 551.6 | $ | 616.4 | |||||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities follow at December 31 (in millions): | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loss carryovers | $ | 52.2 | $ | 52.6 | |||||||||||||||||
Reserves not currently deductible for tax | 94.5 | 91.2 | |||||||||||||||||||
Other | 69.3 | 64.6 | |||||||||||||||||||
Gross deferred tax assets before valuation allowance | 216 | 208.4 | |||||||||||||||||||
Valuation allowance | (0.9 | ) | (2.7 | ) | |||||||||||||||||
Net deferred tax assets | 215.1 | 205.7 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Property | (1,194.7 | ) | (1,044.6 | ) | |||||||||||||||||
Investments | (68.2 | ) | (66.3 | ) | |||||||||||||||||
Other | (8.4 | ) | (7.8 | ) | |||||||||||||||||
Gross deferred tax liabilities | (1,271.3 | ) | (1,118.7 | ) | |||||||||||||||||
Net deferred tax liability | $ | (1,056.2 | ) | $ | (913.0 | ) | |||||||||||||||
Tax Rates. Differences between the Company’s effective income tax rate and the U.S. federal statutory income tax rate of 35% follow (in millions): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||
Income tax expense using the statutory rate in effect | $ | 249.6 | 35 | % | $ | 193.1 | 35 | % | $ | 215.7 | 35 | % | |||||||||
Tax effect of: | |||||||||||||||||||||
Difference between U.S. and foreign tax rate | (23.0 | ) | (3.2 | %) | (15.4 | ) | (2.8 | %) | (18.4 | ) | (3.0 | %) | |||||||||
Foreign exchange and inflation adjustments (i) | (25.6 | ) | (3.6 | %) | 4.7 | 0.8 | % | 42.3 | 6.9 | % | |||||||||||
State and local income tax provision, net | 11.7 | 1.6 | % | 8.9 | 1.6 | % | 8.4 | 1.3 | % | ||||||||||||
Change in valuation allowances | (1.8 | ) | (0.3 | %) | (0.9 | ) | (0.2 | %) | (11.2 | ) | (1.8 | %) | |||||||||
Other, net | (2.1 | ) | (0.2 | %) | 7.9 | 1.5 | % | 0.2 | — | ||||||||||||
Income tax expense | $ | 208.8 | 29.3 | % | $ | 198.3 | 35.9 | % | $ | 237 | 38.4 | % | |||||||||
_____________________ | |||||||||||||||||||||
(i) | Mexican income taxes are paid in Mexican pesos, and as a result, the effective income tax rate reflects fluctuations in the value of the Mexican peso against the U.S. dollar. Most significantly, any gain or loss from the revaluation of net U.S. dollar-denominated monetary liabilities (primarily debt) into Mexican pesos is included in Mexican taxable income under Mexican tax law. As a result, a strengthening of the Mexican peso against the U.S. dollar for the reporting period will generally increase the Mexican cash tax obligation and the effective income tax rate, and a weakening of the Mexican peso against the U.S. dollar for the reporting period will generally decrease the Mexican cash tax obligation and the effective tax rate. To hedge its exposure to this risk, during 2014 and 2013 the Company entered into foreign currency forward contracts, which are measured at fair value each period and any change in fair value is recognized in foreign exchange gain (loss) within the consolidated statements of income. Refer to Note 8 Derivative Instruments for further information. | ||||||||||||||||||||
Difference Attributable to Foreign Investments. At December 31, 2014, the Company’s book basis exceeded the tax basis of its foreign investments by $1,593.9 million. The Company has not provided a deferred income tax liability for the income taxes, if any, which might become payable on the realization of this basis difference because the Company intends to indefinitely reinvest in foreign investments the operating earnings which gave rise to the basis differential or remit the earnings in tax-free transactions. Moreover, the Company has no other plans to realize this basis differential by a sale of its interests in foreign investments. If the earnings were to be remitted in a taxable transaction, as of December 31, 2014, the Company would incur gross federal income taxes of $557.9 million which would be partially offset by foreign tax credits. | |||||||||||||||||||||
Changes in Tax Law. On December 11, 2013, changes to the Mexican Federal Income Tax Law were approved eliminating the statutory income tax rate reduction to 29% for 2014 and 28% for 2015 and thereafter, and leaving the existing 30% statutory income tax rate in effect for future years. Additionally, the Entrepreneurial Tax of Unique Rate (referred to by its Spanish acronym, IETU or Flat Tax) was repealed as of January 1, 2014. The Company's deferred income tax assets and liabilities as of December 31, 2013 were revalued using the rates expected to be in effect when the underlying temporary differences are expected to reverse. The change in tax law did not have a material impact to the consolidated financial statements. | |||||||||||||||||||||
Tax Carryovers. The Company has both U.S. federal and state net operating losses which are carried forward 20 years for federal tax purposes and from 5 to 20 years for state tax purposes. Both the federal and state loss carryovers are analyzed each year to determine the likelihood of realization. The U.S. federal loss carryover at December 31, 2014, was $32.8 million and if not used, would begin to expire in 2023. The consolidated financial statements do not reflect $8.9 million of federal loss carryovers due to a limitation on recognized excess tax benefits related to share based compensation until they are used to reduce current taxes payable at which point will be recognized as an increase to additional paid in capital. In addition, the Company has $37.3 million of tax credit carryovers consisting primarily of $31.7 million of track maintenance credits which, if not used, will begin to expire in 2024. | |||||||||||||||||||||
The state loss carryovers arise from both combined and separate tax filings from as early as 1999. The loss carryovers may expire as early as December 31, 2015 and as late as December 31, 2034. The state loss carryover at December 31, 2014, was $472.5 million. | |||||||||||||||||||||
The Mexico federal loss carryovers at December 31, 2014, were $83.5 million and, if not used, will begin to expire in 2019. A deferred tax asset was recorded in prior periods for the expected future tax benefit of these losses which will be carried forward to reduce only Mexican income tax payable in future years. A deferred tax asset is also recorded for an asset tax credit carryover in the amount of $5.7 million, which, if not used, will begin to expire in 2017. | |||||||||||||||||||||
The valuation allowance for deferred tax assets as of December 31, 2014 and 2013, was $0.9 million and $2.7 million, respectively. | |||||||||||||||||||||
The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, net of valuation allowances, related to loss carryovers and tax credits. | |||||||||||||||||||||
Uncertain Tax Positions. The accounting guidance for uncertainty in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance requires the Company to recognize in the consolidated financial statements the benefit of a tax position only if the impact is more likely than not of being sustained on audit based on the technical merits of the position. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Balance at January 1, | $ | 3.5 | $ | 3.6 | |||||||||||||||||
Additions based on tax positions related to the current year | — | — | |||||||||||||||||||
Additions for tax positions of prior years | — | — | |||||||||||||||||||
Reductions for tax positions of prior years | (1.8 | ) | (0.1 | ) | |||||||||||||||||
Balance at December 31, | $ | 1.7 | $ | 3.5 | |||||||||||||||||
All of the unrecognized tax benefits would affect the effective income tax rate if recognized and is not expected to significantly change in the next twelve months. | |||||||||||||||||||||
Interest and penalties related to uncertain tax positions are included in income before taxes on the consolidated statements of income. Accrued interest and penalties on unrecognized tax benefits and interest and penalty expense was immaterial to the consolidated financial statements for all periods presented. | |||||||||||||||||||||
Tax Contingencies. Tax returns filed in the U.S. for periods after 2010 and in Mexico for periods after 2008 remain open to examination by the taxing authorities. In 2014, the Internal Revenue Service (“IRS”) initiated an examination on the 2011 and 2012 U.S. federal tax returns. This examination was completed and settled in the fourth quarter of 2014 with an immaterial impact to the consolidated financial statements. The Servicio de Administración Tributaria (the “SAT”), the Mexican equivalent of the IRS, is currently examining the KCSM 2009 and 2010 tax returns and the KCSM Servicios 2012 tax return. In the fourth quarter of 2014, the 2007 KCSM examination was completed without adjustment. The Company is litigating a Value Added Tax (“VAT”) audit assessment from the SAT for KCSM for the year ended December 31, 2005. The Company believes it is more likely than not that it will prevail in challenging the KCSM 2005 assessment. While the outcome of this matter cannot be predicted with certainty, the Company does not believe, when resolved, that this dispute will have a material effect on its consolidated financial statements. However, an unexpected adverse resolution could have a material effect on the consolidated financial statements in a particular quarter or fiscal year. | |||||||||||||||||||||
NAFTA Rail, S. de R.L. de C.V. (NAFTA), a wholly-owned subsidiary of KCS, recorded a receivable from the SAT for VAT paid by NAFTA in connection with NAFTA’s purchase of locomotives. NAFTA subsequently collected VAT in connection with leasing these locomotives, and offset the resulting VAT payable against the existing VAT receivable. The SAT issued a resolution in 2013 which denied this offset, and assessed payment. NAFTA litigated this resolution and in January 2015 a Mexican tax court issued a favorable ruling by dismissing the SAT resolution. The SAT has the right to appeal this tax court decision. An adverse resolution could result in the determination that approximately $13.4 million of VAT receivable recorded by NAFTA is not recoverable. | |||||||||||||||||||||
KCSM has not historically assessed VAT on international import transportation services provided to its customers based on a written ruling that KCSM obtained from the SAT in 2008 stating that such services were exempt from VAT (the “2008 Ruling”). Notwithstanding the 2008 Ruling, in December 2013, the SAT unofficially informed KCSM of an intended implementation of new criteria effective as of January 1, 2014, pursuant to which VAT would be assessed on all international import transportation services on the portion of the services provided within Mexico. Additionally, in November 2013, the SAT filed an action to nullify the 2008 Ruling, potentially exposing the application of the new criteria to open tax years. In February 2014, KCSM filed an action opposing the SAT’s nullification action. While the SAT’s unofficial communication to KCSM is not enforceable and the 2008 Ruling continues to be in effect, KCSM notified its customers in December 2013 of the potential assessment of VAT on international import transportation services; however, implementation of any VAT assessment will depend on future developments and any guidance published by the SAT. Due to the pass-through nature of VAT assessed on services provided to customers, the Company does not believe any ultimate requirement to assess VAT on international import transportation services will have a significant effect on its consolidated financial statements. However, unexpected adverse implementation criteria imposed by the SAT for open tax years could have a material effect on the consolidated financial statements of the Company in a particular quarter or fiscal year. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Stockholders' Equity | Stockholders’ Equity | |||||||||||||||
Information regarding the Company’s capital stock at December 31 follows: | ||||||||||||||||
Shares Authorized | Shares Issued | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
$25 par, 4% noncumulative, preferred stock | 840,000 | 840,000 | 649,736 | 649,736 | ||||||||||||
$1 par, preferred stock | 2,000,000 | 2,000,000 | — | — | ||||||||||||
$.01 par, common stock | 400,000,000 | 400,000,000 | 123,352,185 | 123,352,185 | ||||||||||||
Shares outstanding at December 31: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
$25 par, 4% noncumulative, preferred stock | 242,170 | 242,170 | ||||||||||||||
$.01 par, common stock | 110,392,330 | 110,229,229 | ||||||||||||||
Treasury Stock. Shares of common stock in Treasury and related activity follow: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Balance at beginning of year | 13,122,956 | 13,220,832 | 13,441,328 | |||||||||||||
Shares issued to fund stock option exercises | (46,100 | ) | (54,209 | ) | (141,728 | ) | ||||||||||
Employee stock purchase plan shares issued | (33,402 | ) | (42,391 | ) | (44,319 | ) | ||||||||||
Nonvested shares issued | (121,865 | ) | (5,723 | ) | (56,136 | ) | ||||||||||
Nonvested shares forfeited | 38,266 | 4,447 | 21,687 | |||||||||||||
Balance at end of year | 12,959,855 | 13,122,956 | 13,220,832 | |||||||||||||
Change in Control Provisions. The Company and certain of its subsidiaries have entered into agreements with employees whereby, upon defined circumstances constituting a change in control of the Company or subsidiary, certain stock options become exercisable, certain benefit entitlements are automatically funded and such employees are entitled to specified cash payments upon termination of employment. | ||||||||||||||||
The Company and certain of its subsidiaries have established trusts to provide for the funding of corporate commitments and entitlements of officers, directors, employees and others in the event of a specified change in control of the Company or subsidiary. Assets held in such trusts on December 31, 2014 and 2013, were not material. Depending upon the circumstances at the time of any such change in control, the most significant of which would be the price paid for KCS common stock by a party seeking to control the Company, funding of the Company’s trusts could be substantial. | ||||||||||||||||
Accumulated Other Comprehensive Loss. The following table summarizes the changes in the after-tax balances of each component of accumulated other comprehensive income (loss) (in millions): | ||||||||||||||||
Postemployment Benefits | Foreign Currency Translation Adjustment | Unrealized Loss on Cash Flow Hedges | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at December 31, 2012 | $ | 0.4 | $ | (2.2 | ) | $ | (0.6 | ) | $ | (2.4 | ) | |||||
Other comprehensive loss before reclassifications | — | — | (0.2 | ) | (0.2 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (0.1 | ) | — | 0.7 | 0.6 | |||||||||||
Net current-period other comprehensive income (loss) | (0.1 | ) | — | 0.5 | 0.4 | |||||||||||
Balance at December 31, 2013 | 0.3 | (2.2 | ) | (0.1 | ) | (2.0 | ) | |||||||||
Other comprehensive loss before reclassifications | — | (1.1 | ) | — | (1.1 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (0.2 | ) | — | 0.1 | (0.1 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (0.2 | ) | (1.1 | ) | 0.1 | (1.2 | ) | |||||||||
Balance at December 31, 2014 | $ | 0.1 | $ | (3.3 | ) | $ | — | $ | (3.2 | ) | ||||||
The following table summarizes the effects on net income of significant amounts being reclassified out of each component of accumulated other comprehensive income (loss) for the year ended December 31 (in millions): | ||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | 2014 | 2013 | 2012 | Affected Line Item in the Consolidated Statements of Income | ||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||
Interest rate swaps | $ | (0.1 | ) | $ | (0.6 | ) | $ | (0.7 | ) | Interest expense | ||||||
— | (0.4 | ) | — | Debt retirement costs | ||||||||||||
Total before tax | (0.1 | ) | (1.0 | ) | (0.7 | ) | ||||||||||
Tax effect | — | 0.3 | 0.3 | Income tax expense | ||||||||||||
Net of tax | (0.1 | ) | (0.7 | ) | (0.4 | ) | ||||||||||
Postemployment benefits: | ||||||||||||||||
Amortization of prior service credit | 0.3 | 0.2 | 0.2 | Compensation and benefits expense | ||||||||||||
Total before tax | 0.3 | 0.2 | 0.2 | |||||||||||||
Tax effect | (0.1 | ) | (0.1 | ) | (0.1 | ) | Income tax expense | |||||||||
Net of tax | 0.2 | 0.1 | 0.1 | |||||||||||||
Total reclassification for the period, net of tax | $ | 0.1 | $ | (0.6 | ) | $ | (0.3 | ) | ||||||||
Cash Dividends on Common Stock. The following table presents the amount of cash dividends declared per common share by the Company’s Board of Directors: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cash dividends declared per common share | $ | 1.12 | $ | 0.86 | $ | 0.78 | ||||||||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||||||
On October 7, 2008, the Company’s stockholders approved the Kansas City Southern 2008 Stock Option and Performance Award Plan (the “2008 Plan”). The 2008 plan became effective on October 14, 2008 and replaced the Kansas City Southern 1991 Amended and Restated Stock Option and Performance Award Plan. The 2008 Plan provides for the granting of up to 2.3 million shares of the Company’s common stock to eligible persons as defined in the 2008 Plan. | |||||||||||||
Stock Options. The exercise price for options granted under the 2008 Plan equals the closing market price of the Company’s stock on the date of grant. Options generally have a 3 year vesting period and are exercisable over the 10 year contractual term, except that options outstanding become immediately exercisable upon certain defined circumstances constituting a change in control of the Company. The grant date fair value, less estimated forfeitures, is recorded to expense on a straight-line basis over the vesting period. | |||||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average assumptions used were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividend yield | 1.19 | % | 0.88 | % | 0 | % | |||||||
Expected volatility | 45.57 | % | 46.12 | % | 46.59 | % | |||||||
Risk-free interest rate | 1.96 | % | 1.11 | % | 0.46 | % | |||||||
Expected term (years) | 6 | 6 | 6 | ||||||||||
Weighted-average grant date fair value of stock options granted | $ | 38.31 | $ | 40.05 | $ | 29.45 | |||||||
The expected dividend yield is calculated as the ratio of dividends paid per share of common stock to the stock price on the date of grant. The expected dividend yield for 2012 was 0% as all stock options were granted prior to the initial dividend declaration on March 30, 2012. The expected volatility is based on the historical volatility of the Company’s stock price over a term equal to the estimated life of the options. The risk-free interest rate is determined based on U.S. Treasury rates for instruments with terms approximating the expected life of the options granted, which represents the period of time the awards are expected to be outstanding and is based on the historical experience of similar awards. | |||||||||||||
A summary of stock option activity is as follows: | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Per Share | Term | ||||||||||||
In years | In millions | ||||||||||||
Options outstanding at December 31, 2013 | 362,759 | $ | 54.94 | ||||||||||
Granted | 53,021 | 94.23 | |||||||||||
Exercised | (46,100 | ) | 43.93 | ||||||||||
Forfeited or expired | (13,582 | ) | 91.32 | ||||||||||
Options outstanding at December 31, 2014 | 356,098 | $ | 60.83 | 6.58 | $ | 21.8 | |||||||
Vested and expected to vest at December 31, 2014 | 353,769 | $ | 60.64 | 6.57 | $ | 21.7 | |||||||
Exercisable at December 31, 2014 | 256,888 | $ | 49.62 | 5.88 | $ | 18.6 | |||||||
Compensation cost of $1.7 million, $2.4 million, and $1.8 million was recognized for stock option awards for the years ended December 31, 2014, 2013, and 2012, respectively. The total income tax benefit recognized in the consolidated statements of income was $0.7 million, $0.9 million, and $0.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Additional information regarding stock option exercises appears in the table below (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Aggregate grant-date fair value of stock options vested | $ | 2.3 | $ | 1.8 | $ | 1.3 | |||||||
Intrinsic value of stock options exercised | 3.3 | 5 | 12.1 | ||||||||||
Cash received from option exercises | 2 | 1.5 | 1.9 | ||||||||||
Tax benefit realized from options exercised during the annual period | 1.3 | 1.9 | 4.6 | ||||||||||
As of December 31, 2014, $1.0 million of unrecognized compensation cost relating to nonvested stock options is expected to be recognized over a weighted-average period of 1.0 year. At December 31, 2014, there were 1,059,927 shares available for future grants under the 2008 Plan. | |||||||||||||
Nonvested Stock. The 2008 Plan provides for the granting of nonvested stock awards to officers and other designated employees. The grant date fair value is based on the closing market price on the date of the grant. These awards are subject to forfeiture if employment terminates during the vesting period, which is generally 3 year or 5 year vesting for employees. Awards granted to the Company’s directors vest immediately on date of grant. The grant date fair value of nonvested shares, less estimated forfeitures, is recorded to compensation expense on a straight-line basis over the vesting period. | |||||||||||||
A summary of nonvested stock activity is as follows: | |||||||||||||
Number of | Weighted- | Aggregate | |||||||||||
Shares | Average Grant | Intrinsic | |||||||||||
Date Fair | Value | ||||||||||||
Value | |||||||||||||
In millions | |||||||||||||
Nonvested stock at December 31, 2013 | 202,060 | $ | 63 | ||||||||||
Granted | 75,541 | 105.04 | |||||||||||
Vested | (82,642 | ) | 54.53 | ||||||||||
Forfeited | (38,266 | ) | 66.45 | ||||||||||
Nonvested stock at December 31, 2014 | 156,693 | $ | 86.89 | $ | 19.1 | ||||||||
The fair value (at vest date) of shares vested during the years ended December 31, 2014, 2013, and 2012 was $8.5 million, $12.2 million, and $7.8 million, respectively. | |||||||||||||
The weighted-average grant date fair value of nonvested stock granted during 2014, 2013, and 2012 was $105.04, $103.38 and $70.98, respectively. Compensation cost for nonvested stock was $4.0 million, $5.6 million, and $4.4 million for the years ended December 31, 2014, 2013, and 2012, respectively. The total income tax benefit recognized in the consolidated statements of income was $1.5 million, $2.1 million, and $1.6 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
As of December 31, 2014, $7.2 million of unrecognized compensation costs related to nonvested stock is expected to be recognized over a weighted-average period of 1.9 years. | |||||||||||||
Performance Based Awards. The Company granted performance based nonvested stock awards during 2014 (the “2014 Awards”), 2013 (the “2013 Awards”) and 2012 (the “2012 Awards”). The awards granted provide a target number of shares that generally vest at the end of a 3 year requisite service period following the grant date. In addition to the service condition, the number of nonvested shares to be received depends on the attainment of defined Company-wide performance goals based on operating ratio and return on invested capital over a three-year performance period. The number of nonvested shares ultimately earned will range between zero to 200% of the target award. | |||||||||||||
A summary of performance based nonvested stock activity at target is as follows: | |||||||||||||
Target Number of Shares * | Weighted-Average Grant Date Fair Value | ||||||||||||
Nonvested stock, at December 31, 2013 | 178,886 | $ | 69.19 | ||||||||||
Granted | 43,110 | 94.23 | |||||||||||
Vested | (72,900 | ) | 52.66 | ||||||||||
Forfeited | (17,031 | ) | 86.59 | ||||||||||
Nonvested stock, at December 31, 2014 | 132,065 | $ | 84.24 | ||||||||||
_____________________ | |||||||||||||
* For the 2014 Awards and the 2013 Awards, participants in the aggregate can earn up to a maximum of 74,298 and 52,838 shares, respectively. For the 2012 Awards, the performance shares earned were 45,000. | |||||||||||||
The weighted-average grant date fair value of performance based nonvested stock granted during 2014, 2013 and 2012 was $94.23, $82.34 and $62.81, respectively. The Company expenses the grant date fair value of the awards which are probable of being earned over the performance periods. Compensation cost on performance based awards was $3.7 million, $5.1 million and $4.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. Total income tax benefit recognized in the consolidated statements of income for performance based awards was $1.3 million, $1.9 million and $1.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
As of December 31, 2014, $4.0 million of unrecognized compensation cost related to performance based awards is expected to be recognized over a weighted-average period of 0.9 year. The fair value (at vest date) of shares vested for the year ended December 31, 2014 was $6.8 million. | |||||||||||||
Employee Stock Purchase Plan. The employee stock purchase plan (“ESPP”) provides substantially all full-time employees of the Company, certain subsidiaries and certain other affiliated entities, with the right to subscribe to an aggregate of 4.0 million shares of common stock of the Company. | |||||||||||||
Prior to January 1. 2015, eligible employees could contribute, through payroll deductions, up to 5% of their regular base compensation during six-month purchase periods. | |||||||||||||
The purchase price for shares was equal to 90% of the closing market price on either the exercise date or the offering date, whichever was lower. Effective January 1, 2015, the ESPP plan was amended to allow eligible employees to contribute up to 10% of their regular base compensation during six-month purchase periods at a purchase price equal to 85% of the closing market price on either the exercise date or the offering date, whichever is lower. | |||||||||||||
At the end of each purchase period, the accumulated deductions are applied toward the purchase of the Company’s common stock. Both the discount in grant price and the share option purchase price are valued to derive the award’s fair value. The awards vest and the expense is recognized ratably over the offering period. | |||||||||||||
The following table summarizes activity related to the various ESPP offerings: | |||||||||||||
Exercise Date | Received | ||||||||||||
from | |||||||||||||
Date | Purchase | Shares | Employees(i) | ||||||||||
Issued | Price | Issued | |||||||||||
In millions | |||||||||||||
July 2014 offering | January 9, 2015 | $ | 96.48 | 17,639 | $ | 1.7 | |||||||
January 2014 offering | July 10, 2014 | 96.76 | 17,026 | 1.6 | |||||||||
July 2013 offering | January 13, 2014 | 97.58 | 16,376 | 1.6 | |||||||||
January 2013 offering | July 12, 2013 | 77.53 | 19,292 | 1.5 | |||||||||
July 2012 offering | January 14, 2013 | 61.73 | 23,099 | 1.4 | |||||||||
January 2012 offering | July 13, 2012 | 61.84 | 21,559 | 1.3 | |||||||||
_____________________ | |||||||||||||
(i) | Represents amounts received from employees through payroll deductions for share purchases under applicable offering. | ||||||||||||
The fair value of the ESPP stock purchase rights is estimated on the date of grant using the Black-Scholes option pricing model. The weighted-average assumptions used for each of the respective periods were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividend yield | 0.99 | % | 0.9 | % | 0.59 | % | |||||||
Expected volatility | 19.03 | % | 18.3 | % | 28.97 | % | |||||||
Risk-free interest rate | 0.1 | % | 0.13 | % | 0.14 | % | |||||||
Expected term (years) | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted-average grant date fair value | $ | 17.13 | $ | 14.48 | $ | 12.4 | |||||||
Compensation expense of $0.6 million, $0.5 million, and $0.5 million was recognized for ESPP option awards for the years ended December 31, 2014, 2013, and 2012, respectively. At December 31, 2014, there were 3.8 million remaining shares available for future ESPP offerings under the plan. |
Postemployment_Benefits
Postemployment Benefits | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Postemployment Benefits [Abstract] | ||||||||||||||||||||||||
Postemployment Benefits | Postemployment Benefits | |||||||||||||||||||||||
Health and Welfare. Certain U.S. employees that have met age and service requirements are eligible for medical benefits and life insurance coverage during retirement. The retiree medical plan is contributory and provides benefits to retirees, their covered dependents and beneficiaries. The plan provides for annual adjustments to retiree contributions, and also contains, depending on the coverage selected, certain deductibles, co-payments, co-insurance, and coordination with Medicare. Certain management employees also maintain their status under a collective bargaining agreement, which permits them access to post-retirement medical under the multi-employer plan described below. The life insurance plan is non-contributory and covers union retirees only. The Company’s policy, in most cases, is to fund benefits payable under these plans as the obligations become due. | ||||||||||||||||||||||||
Postemployment Benefits. Mexican law requires that the Company provide certain postemployment benefits to its Mexican union and non-union employees. These plans provide statutorily calculated benefits which are payable upon retirement, death, disability, voluntary or involuntary termination of employees based on length of service. | ||||||||||||||||||||||||
The Company uses December 31 as the measurement date for its postemployment benefit obligations. | ||||||||||||||||||||||||
Net Periodic Benefit Cost, Plan Obligations and Funded Status | ||||||||||||||||||||||||
Components of the net cost (benefit) for these plans were as follows for the years ended December 31 (in millions): | ||||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.8 | $ | 0.9 | $ | 0.9 | ||||||||||||
Interest cost | 0.2 | 0.2 | 0.2 | 1 | 0.9 | 0.8 | ||||||||||||||||||
Actuarial (gain) loss (i) | 0.9 | (0.9 | ) | 0.1 | 3.8 | (1.0 | ) | 3.1 | ||||||||||||||||
Foreign currency (gain) loss | — | — | — | (1.5 | ) | (0.1 | ) | 0.6 | ||||||||||||||||
Prior service credit (ii) | (0.2 | ) | (0.2 | ) | (0.2 | ) | — | — | — | |||||||||||||||
Net periodic cost (benefit) recognized | $ | 1 | $ | (0.8 | ) | $ | 0.2 | $ | 4.1 | $ | 0.7 | $ | 5.4 | |||||||||||
_____________________ | ||||||||||||||||||||||||
(i) | Net benefit costs above do not include a component for the amortization of actuarial gains or losses as the Company’s policy is to recognize such gains and losses immediately. | |||||||||||||||||||||||
(ii) | During 2005, the Company revised its medical plan to exclude prescription drug coverage available under Medicare part D. This negative plan amendment generated an unrecognized prior service benefit of $2.3 million which is being amortized over the estimated remaining life of the affected participants of 9.5 years. | |||||||||||||||||||||||
The following table reconciles the change in the benefit obligation, fair value of plan assets and the accrued benefit cost as of and for each of the years ended December 31 (in millions): | ||||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Benefit obligation at beginning of year | $ | 5.5 | $ | 6.5 | $ | 12.8 | $ | 13.2 | ||||||||||||||||
Service cost | 0.1 | 0.1 | 0.8 | 0.9 | ||||||||||||||||||||
Interest cost | 0.2 | 0.2 | 1 | 0.9 | ||||||||||||||||||||
Actuarial (gain) loss | 0.9 | (0.9 | ) | 3.8 | (1.0 | ) | ||||||||||||||||||
Foreign currency (gain) loss | — | — | (1.5 | ) | (0.1 | ) | ||||||||||||||||||
Benefits paid, net of retiree contributions | (0.4 | ) | (0.4 | ) | (0.8 | ) | (1.1 | ) | ||||||||||||||||
Benefit obligation at end of year | $ | 6.3 | $ | 5.5 | $ | 16.1 | $ | 12.8 | ||||||||||||||||
As of December 31, 2014 and 2013, the Company’s health and welfare and postemployment benefit obligations were unfunded. | ||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||
The assumptions used to determine benefit obligations and costs are selected based on current and expected market conditions. Discount rates are selected based on the rates on low risk government bonds with cash flows approximating the timing of expected benefit payments. The U.S. bond market is utilized for the U.S. health and welfare obligation and the Mexico bond market is utilized for the postemployment obligation. | ||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations were as follows for the years ended December 31: | ||||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 3.75 | % | 4.5 | % | 8 | % | 8.25 | % | ||||||||||||||||
Rate of compensation increase | n/a | n/a | 4.5 | % | 4.5 | % | ||||||||||||||||||
Weighted-average assumptions used to determine net benefit cost for the periods were as follows for the years ended December 31: | ||||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.5 | % | 3.5 | % | 8.25 | % | 6.75 | % | ||||||||||||||||
Rate of compensation increase | n/a | n/a | 4.5 | % | 4.5 | % | ||||||||||||||||||
The following table presents the assumed health care cost trends: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Health care trend rate for next year | 6.5 | % | 6.5 | % | 8 | % | ||||||||||||||||||
Ultimate trend rate | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
Year that rate reaches ultimate rate | 2021 | 2023 | 2029 | |||||||||||||||||||||
Cash Flows | ||||||||||||||||||||||||
The following table presents benefit payments expected to be paid, which reflect expected future service, as appropriate, for each of the next five years and the aggregate five years thereafter (in millions): | ||||||||||||||||||||||||
Year | Health and | Postemployment | ||||||||||||||||||||||
Welfare | Benefits | |||||||||||||||||||||||
2015 | $ | 0.5 | $ | 1 | ||||||||||||||||||||
2016 | 0.5 | 1 | ||||||||||||||||||||||
2017 | 0.5 | 1.1 | ||||||||||||||||||||||
2018 | 0.4 | 1.3 | ||||||||||||||||||||||
2019 | 0.3 | 1.4 | ||||||||||||||||||||||
2020-2024 | 1.7 | 8.9 | ||||||||||||||||||||||
Multi-Employer Plan. Under collective bargaining agreements, KCSR participates in a multi-employer benefit plan, which provides certain post-retirement health care and life insurance benefits to eligible union employees and certain retirees. Premiums under this plan are expensed as incurred and were $3.7 million, $3.9 million and $4.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
401(k) and Profit Sharing Plan. The Company sponsors the KCS 401(k) and Profit Sharing Plan (the “401(k) plan”), whereby participants can choose to make contributions in the form of salary deductions pursuant to Section 401(k) of the Internal Revenue Code. The Company matches 401(k) contributions up to a maximum of 5% of compensation. The Company recognized expense of $2.7 million, $2.5 million and $2.3 million for the years ended December 31, 2014, 2013 and 2012, related to the KCS 401(k) and Profit Sharing Plan. The 401(k) plan includes the Company’s common stock as an investment option. The common stock is acquired by the 401(k) plan trustee through open market transactions of previously registered shares. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||
Concession Duty. Under KCSM’s 50-year Concession, which would expire in 2047 unless extended, KCSM pays concession duty expense of 1.25% of gross revenues. For the year ended December 31, 2014, the concession duty expense, which is recorded within materials and other in operating expenses, was $15.8 million, compared to $14.3 million and $9.4 million for the same periods in 2013 and 2012, respectively. | ||||||||
Litigation. The Company is a party to various legal proceedings and administrative actions, all of which, except as set forth below, are of an ordinary, routine nature and incidental to its operations. Included in these proceedings are various tort claims brought by current and former employees for job-related injuries and by third parties for injuries related to railroad operations. KCS aggressively defends these matters and has established liability provisions, which management believes are adequate to cover expected costs. Although it is not possible to predict the outcome of any legal proceeding, in the opinion of management, other than those proceedings described in detail below, such proceedings and actions should not, individually, or in the aggregate, have a material adverse effect on the Company’s consolidated financial statements. | ||||||||
On April 15, 2014, a putative securities class action lawsuit was filed in the United States District Court for the Western District of Missouri against the Company and certain of its current and former officers and directors. The securities class action is styled as Gross v. Kansas City Southern, et al., 4:14-cv-00345-BCW. On April 16, 2014, the first of two shareholder derivative actions purportedly brought on behalf of the Company (which is named as a “nominal defendant”) was filed in the United States District Court for the Western District of Missouri against certain of the Company’s current and former directors and officers. The first derivative action is styled as Webster v. Starling, et al., 4:14-cv-00349-BCW. The second derivative action was filed on June 6, 2014, and is styled as Lerner v. Starling, et al., 4:14-cv-00509-BCW. The complaints allege, among other things, that the Company made misrepresentations or omitted to disclose certain facts in connection with its volume guidance for fiscal year 2013. The complaints seek unspecified damages and equitable relief. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that, when resolved, these disputes will have a material effect on its consolidated financial statements. However, an adverse resolution could have a material effect on the Company’s consolidated financial statements. | ||||||||
Environmental Liabilities. The Company’s U.S. operations are subject to extensive federal, state and local environmental laws and regulations. The major U.S. environmental laws to which the Company is subject include, among others, the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA,” also known as the Superfund law), the Toxic Substances Control Act, the Federal Water Pollution Control Act, and the Hazardous Materials Transportation Act. CERCLA can impose joint and several liabilities for cleanup and investigation costs, without regard to fault or legality of the original conduct, on current and predecessor owners and operators of a site, as well as those who generate, or arrange for the disposal of, hazardous substances. The Company does not believe that compliance with the requirements imposed by the environmental legislation will impair its competitive capability or result in any material additional capital expenditures, operating or maintenance costs. The Company is, however, subject to environmental remediation costs as described in the following paragraphs. | ||||||||
The Company’s Mexico operations are subject to Mexican federal and state laws and regulations relating to the protection of the environment through the establishment of standards for water discharge, water supply, emissions, noise pollution, hazardous substances and transportation and handling of hazardous and solid waste. The Mexican government may bring administrative and criminal proceedings, impose economic sanctions against companies that violate environmental laws, and temporarily or even permanently close non-complying facilities. | ||||||||
The risk of incurring environmental liability is inherent in the railroad industry. As part of serving the petroleum and chemicals industry, the Company transports hazardous materials and has a professional team available to respond to and handle environmental issues that might occur in the transport of such materials. | ||||||||
The Company performs ongoing reviews and evaluations of the various environmental programs and issues within the Company’s operations, and, as necessary, takes actions intended to limit the Company’s exposure to potential liability. Although these costs cannot be predicted with certainty, management believes that the ultimate outcome of identified matters will not have a material adverse effect on the Company’s consolidated financial statements. | ||||||||
Personal Injury. The Company’s personal injury liability is based on semi-annual actuarial studies performed on an undiscounted basis by an independent third party actuarial firm and reviewed by management. This liability is based on personal injury claims filed and an estimate of claims incurred but not yet reported. Actual results may vary from estimates due to the number, type and severity of the injury, costs of medical treatments and uncertainties in litigation. Adjustments to the liability are reflected within operating expenses in the period in which changes to estimates are known. Personal injury claims in excess of self-insurance levels are insured up to certain coverage amounts, depending on the type of claim and year of occurrence. The personal injury liability as of December 31, 2014 is based on an updated actuarial study of personal injury claims through November 30, 2014 and review of December 2014 experience. For the years ended December 31, 2014 and 2013, the Company recorded a $4.2 million reduction and a $1.3 million increase, respectively, in personal injury liability, due to changes in estimates as a result of the Company’s claims development and settlement experience. | ||||||||
The personal injury liability activity was as follows (in millions): | ||||||||
2014 | 2013 | |||||||
Balance at beginning of year | $ | 31.2 | $ | 34.4 | ||||
Accruals | 8.8 | 8.8 | ||||||
Change in estimate | (4.2 | ) | 1.3 | |||||
Payments | (6.5 | ) | (13.3 | ) | ||||
Balance at end of year | $ | 29.3 | $ | 31.2 | ||||
Certain Disputes with Ferromex. KCSM and Ferrocarril Mexicano, S.A. de C.V. (“Ferromex”) use certain trackage rights, haulage rights and interline services (the “Services”) provided by each other. The rates to be charged after January 1, 2009, were agreed to pursuant to the Trackage Rights Agreement, dated February 9, 2010 (the “Trackage Rights Agreement”), between KCSM and Ferromex. The rates payable for these Services for the period beginning in 1998 through December 31, 2008 are still not resolved. If KCSM cannot reach an agreement with Ferromex for rates applicable for Services which were provided prior to January 1, 2009, which are not subject to the Trackage Rights Agreement, the Mexican Secretaría de Comunicaciones y Transportes (“Secretary of Communications and Transportation” or “SCT”) is entitled to set the rates in accordance with Mexican law and regulations. KCSM and Ferromex both initiated administrative proceedings seeking a determination by the SCT of the rates that KCSM and Ferromex should pay each other in connection with the Services. The SCT issued rulings in 2002 and 2008 setting the rates for the Services and both KCSM and Ferromex challenged these rulings. Although KCSM and Ferromex have challenged these matters based on different grounds and these cases continue to evolve, management believes the amounts recorded related to these matters are adequate. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that, when resolved, these disputes will have a material effect on its consolidated financial statements. | ||||||||
Tax Contingencies. Information regarding tax contingencies is included in Note 11 Income Taxes - Tax Contingencies. | ||||||||
Contractual Agreements. In the normal course of business, the Company enters into various contractual agreements related to commercial arrangements and the use of other railroads’ or governmental entities’ infrastructure needed for the operations of the business. The Company is involved or may become involved in certain disputes involving transportation rates, product loss or damage, charges, and interpretations related to these agreements. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that, when resolved, these disputes will have a material effect on its consolidated financial statements. | ||||||||
Credit Risk. The Company continually monitors risks related to economic changes and certain customer receivables concentrations. Significant changes in customer concentration or payment terms, deterioration of customer creditworthiness or further weakening in economic trends could have a significant impact on the collectability of the Company’s receivables and its operating results. If the financial condition of the Company’s customers were to deteriorate and result in an impairment of their ability to make payments, additional allowances may be required. The Company has recorded provisions for uncollectability based on its best estimate at December 31, 2014. | ||||||||
Mexican Legislation. In 2013, proposed legislation was introduced in the Mexican House of Deputies to amend certain provisions in the Mexican Regulatory Railroad Service Law. In February 2014, this proposed legislation was approved by the Mexican House of Deputies and was sent to the Mexican Senate. On December 14, 2014, the Mexican Senate passed a revised version of the Mexican House of Deputies’ bill, and on December 15, 2014, the Mexican House of Deputies passed the bill as amended by the Mexican Senate. On January 26, 2015, the bill was published in the Official Federal Gazette (Diario Oficial de la Federacion) and became law. While it is too early to determine the outcome of this legislation, the Company does not believe, when implemented, it will have a material effect on its consolidated financial statements. | ||||||||
In May 2014, new Mexican antitrust legislation was approved, and became effective on July 7, 2014. This new law replaces antitrust law that had been effective since 1993. The Company will continue to evaluate the Mexican government’s implementation of this legislation. While the Company continues to evaluate the Mexican government’s implementation of this legislation, the Company does not believe it will have a material effect on its consolidated financial statements. | ||||||||
Panama Canal Railway Company (”PCRC”) Guarantees and Indemnities. At December 31, 2014, the Company had issued and outstanding $5.4 million under a standby letter of credit to fulfill its obligation to fund fifty percent of the debt service reserve and liquidity reserve established by PCRC in connection with the issuance of the 7.0% Senior Secured Notes due November 1, 2026 (the “PCRC Notes”). Additionally, KCS has pledged its shares of PCRC as security for the PCRC Notes. |
Elimination_of_Deferred_Statut
Elimination of Deferred Statutory Profit Sharing Liability, Net | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Elimination of Deferred Statutory Profit Sharing Liability, Net | Elimination of Deferred Statutory Profit Sharing Liability, Net |
During the second quarter of 2012, the Company completed an organizational restructuring whereby employees of KCSM became employees of KCSM Servicios, S.A. de C.V. (“KCSM Servicios”), a wholly-owned subsidiary of the Company. KCSM Servicios provides employee services to KCSM, and KCSM pays KCSM Servicios market-based rates for these services. The effective date of this organizational restructuring was May 1, 2012. | |
Mexican employees are entitled to receive Mexican statutory profit sharing. The related cash payment to employees is based on an employer’s net profit determined under accounting principles prescribed in Mexican law, rather than its net profit determined under U.S. GAAP. U.S. GAAP requires the recording of deferred liabilities or assets for financial reporting purposes on the differences between the amounts determined under the two different accounting principles. | |
As a result of the organizational restructuring, KCSM’s obligation to pay Mexican statutory profit sharing terminated on the effective date. Accordingly, in the second quarter of 2012, KCSM recognized a $43.0 million net reduction to operating expense. This reduction includes the elimination of $47.8 million of the deferred Mexican statutory profit sharing liability, net of $4.8 million of transaction costs. KCSM Servicios became obligated to pay Mexican statutory profit sharing to its employees beginning on the effective date of the organizational restructuring. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | |||||||||||||||
Fourth | Third | Second | First | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 642.5 | $ | 677.5 | $ | 649.7 | $ | 607.4 | ||||||||
Operating income | 213.9 | 229.4 | 205.8 | (i) | 160 | (ii) | ||||||||||
Net income | 141.7 | 138.4 | 130.2 | 94 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 141 | 138.1 | 129.8 | 93.7 | ||||||||||||
Per share data: | ||||||||||||||||
Basic earnings per common share | $ | 1.28 | $ | 1.25 | $ | 1.18 | $ | 0.85 | ||||||||
Diluted earnings per common share | 1.28 | 1.25 | 1.18 | 0.85 | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 615.6 | $ | 621.6 | $ | 579.3 | $ | 552.8 | ||||||||
Operating income | 196.1 | 200.3 | 179.3 | 162.9 | ||||||||||||
Net income | 114.4 | 119 | 15.7 | (iii) | 104.2 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 113.8 | 118.4 | 15.4 | (iii) | 103.8 | |||||||||||
Per share data: | ||||||||||||||||
Basic earnings per common share | $ | 1.03 | $ | 1.08 | $ | 0.14 | $ | 0.94 | ||||||||
Diluted earnings per common share | 1.03 | 1.07 | 0.14 | 0.94 | ||||||||||||
_____________________ | ||||||||||||||||
(i) | During the second quarter of 2014, the Company recognized pre-tax lease termination costs of $8.4 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||||
(ii) | During the first quarter of 2014, the Company recognized pre-tax lease termination costs of $29.9 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||||
(iii) | During the second quarter of 2013, the Company recognized pre-tax debt retirement costs of $111.4 million, related to debt restructuring activities that occurred during the period. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information | |||||||||||||||||||||||
As discussed in Note 10, at December 31, 2014, KCSR has outstanding $450.0 million principal amount of 4.30% Senior Notes due May 15, 2043 and $200.0 million principal amount of 3.85% Senior Notes due November 15, 2023, which are unsecured obligations of KCSR, and are also jointly and severally and fully and unconditionally guaranteed on an unsecured senior basis by KCS and certain wholly-owned domestic subsidiaries. KCSR filed a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”) in connection with an exchange offer with respect to the 4.30% Senior Notes and 3.85% Senior Notes, which was declared effective on May 28, 2014. As a result, the Company is providing the accompanying condensed consolidating financial information (in millions) pursuant to SEC Regulation S-X Rule 3-10 “Financial statements of guarantors and issuers of guaranteed securities registered or being registered.” | ||||||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Revenues | $ | — | $ | 1,215.80 | $ | 48.7 | $ | 1,353.70 | $ | (41.1 | ) | $ | 2,577.10 | |||||||||||
Operating expenses | 7.6 | 881.6 | 41.8 | 879.1 | (42.1 | ) | 1,768.00 | |||||||||||||||||
Operating income (loss) | (7.6 | ) | 334.2 | 6.9 | 474.6 | 1 | 809.1 | |||||||||||||||||
Equity in net earnings (losses) of unconsolidated affiliates | 476.7 | (0.1 | ) | 5.5 | 18.9 | (479.9 | ) | 21.1 | ||||||||||||||||
Interest expense | (0.1 | ) | (83.3 | ) | — | (39.6 | ) | 50.2 | (72.8 | ) | ||||||||||||||
Debt retirement costs | — | (2.7 | ) | — | (3.9 | ) | — | (6.6 | ) | |||||||||||||||
Foreign exchange loss | — | — | — | (35.5 | ) | — | (35.5 | ) | ||||||||||||||||
Other income (expense), net | 50.1 | 0.2 | — | (1.2 | ) | (51.3 | ) | (2.2 | ) | |||||||||||||||
Income before income taxes | 519.1 | 248.3 | 12.4 | 413.3 | (480.0 | ) | 713.1 | |||||||||||||||||
Income tax expense | 16.5 | 94.7 | 4.4 | 93.2 | — | 208.8 | ||||||||||||||||||
Net income | 502.6 | 153.6 | 8 | 320.1 | (480.0 | ) | 504.3 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1.7 | — | — | 1.7 | ||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 502.6 | 153.6 | 6.3 | 320.1 | (480.0 | ) | 502.6 | |||||||||||||||||
Other comprehensive income (loss) | (1.2 | ) | 0.1 | — | (1.8 | ) | 1.7 | (1.2 | ) | |||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 501.4 | $ | 153.7 | $ | 6.3 | $ | 318.3 | $ | (478.3 | ) | $ | 501.4 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income—(Continued) | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Revenues | $ | — | $ | 1,115.00 | $ | 42.6 | $ | 1,251.90 | $ | (40.2 | ) | $ | 2,369.30 | |||||||||||
Operating expenses | 4.8 | 829.6 | 39 | 800.1 | (42.8 | ) | 1,630.70 | |||||||||||||||||
Operating income (loss) | (4.8 | ) | 285.4 | 3.6 | 451.8 | 2.6 | 738.6 | |||||||||||||||||
Equity in net earnings of unconsolidated affiliates | 318.3 | 1.1 | 6.3 | 15.7 | (322.6 | ) | 18.8 | |||||||||||||||||
Interest expense | (0.1 | ) | (68.5 | ) | 0.1 | (59.3 | ) | 47.2 | (80.6 | ) | ||||||||||||||
Debt retirement costs | — | (1.5 | ) | — | (117.7 | ) | — | (119.2 | ) | |||||||||||||||
Foreign exchange loss | — | (1.3 | ) | — | (3.9 | ) | — | (5.2 | ) | |||||||||||||||
Other income (expense), net | 44.6 | 5.1 | (0.1 | ) | (0.6 | ) | (49.8 | ) | (0.8 | ) | ||||||||||||||
Income before income taxes | 358 | 220.3 | 9.9 | 286 | (322.6 | ) | 551.6 | |||||||||||||||||
Income tax expense | 17.6 | 81.2 | 2.9 | 96.6 | — | 198.3 | ||||||||||||||||||
Net income | 340.4 | 139.1 | 7 | 189.4 | (322.6 | ) | 353.3 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1.9 | — | — | 1.9 | ||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 340.4 | 139.1 | 5.1 | 189.4 | (322.6 | ) | 351.4 | |||||||||||||||||
Other comprehensive income (loss) | 0.4 | 0.5 | — | (0.1 | ) | (0.4 | ) | 0.4 | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 340.8 | $ | 139.6 | $ | 5.1 | $ | 189.3 | $ | (323.0 | ) | $ | 351.8 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income—(Continued) | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Revenues | $ | — | $ | 1,079.70 | $ | 29.9 | $ | 1,164.70 | $ | (35.7 | ) | $ | 2,238.60 | |||||||||||
Operating expenses | 4.2 | 805 | 34 | 717.7 | (38.2 | ) | 1,522.70 | |||||||||||||||||
Operating income (loss) | (4.2 | ) | 274.7 | (4.1 | ) | 447 | 2.5 | 715.9 | ||||||||||||||||
Equity in net earnings of unconsolidated affiliates | 218.9 | 2.6 | 6.6 | 15.5 | (224.3 | ) | 19.3 | |||||||||||||||||
Interest expense | (0.1 | ) | (65.0 | ) | — | (88.2 | ) | 52.9 | (100.4 | ) | ||||||||||||||
Debt retirement costs | — | (19.6 | ) | — | (0.5 | ) | — | (20.1 | ) | |||||||||||||||
Foreign exchange gain | — | — | — | 2.7 | — | 2.7 | ||||||||||||||||||
Other income (expense), net | 46.5 | 11.7 | — | (128.5 | ) | 69.3 | (1.0 | ) | ||||||||||||||||
Income before income taxes | 261.1 | 204.4 | 2.5 | 248 | (99.6 | ) | 616.4 | |||||||||||||||||
Income tax expense (benefit) | 8.4 | 74.4 | (0.2 | ) | 154.4 | — | 237 | |||||||||||||||||
Net income | 252.7 | 130 | 2.7 | 93.6 | (99.6 | ) | 379.4 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 2.1 | — | — | 2.1 | ||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 252.7 | 130 | 0.6 | 93.6 | (99.6 | ) | 377.3 | |||||||||||||||||
Other comprehensive income (loss) | (0.2 | ) | (0.6 | ) | — | 0.9 | (0.3 | ) | (0.2 | ) | ||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 252.5 | $ | 129.4 | $ | 0.6 | $ | 94.5 | $ | (99.9 | ) | $ | 377.1 | |||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Current assets | $ | 2.7 | $ | 281.7 | $ | 6 | $ | 562.5 | $ | (34.6 | ) | $ | 818.3 | |||||||||||
Investments | — | 3.9 | — | 32.5 | — | 36.4 | ||||||||||||||||||
Investments in consolidated subsidiaries | 2,616.00 | (4.3 | ) | 471.3 | — | (3,083.0 | ) | — | ||||||||||||||||
Property and equipment (including concession assets), net | — | 3,385.50 | 193.3 | 3,575.90 | — | 7,154.70 | ||||||||||||||||||
Other assets | 1.6 | 45.2 | — | 34.8 | — | 81.6 | ||||||||||||||||||
Total assets | $ | 2,620.30 | $ | 3,712.00 | $ | 670.6 | $ | 4,205.70 | $ | (3,117.6 | ) | $ | 8,091.00 | |||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
Current liabilities | $ | (1,156.0 | ) | $ | 1,484.70 | $ | 115.6 | $ | 489.1 | $ | (34.6 | ) | $ | 898.8 | ||||||||||
Long-term debt | 0.2 | 701 | 0.2 | 1,139.60 | — | 1,841.00 | ||||||||||||||||||
Deferred income taxes | 7.3 | 835.8 | 132 | 181.2 | — | 1,156.30 | ||||||||||||||||||
Other liabilities | 3.7 | 94.4 | 0.7 | 32 | — | 130.8 | ||||||||||||||||||
Stockholders’ equity | 3,765.10 | 596.1 | 113.5 | 2,363.80 | (3,083.0 | ) | 3,755.50 | |||||||||||||||||
Noncontrolling interest | — | — | 308.6 | — | — | 308.6 | ||||||||||||||||||
Total liabilities and equity | $ | 2,620.30 | $ | 3,712.00 | $ | 670.6 | $ | 4,205.70 | $ | (3,117.6 | ) | $ | 8,091.00 | |||||||||||
Condensed Consolidating Balance Sheets—(Continued) | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Current assets | $ | 2.6 | $ | 403 | $ | 8.8 | $ | 560.1 | $ | (32.1 | ) | $ | 942.4 | |||||||||||
Investments | — | 9.6 | — | 31.5 | — | 41.1 | ||||||||||||||||||
Investments in consolidated subsidiaries | 2,154.60 | (2.1 | ) | 461.8 | — | (2,614.3 | ) | — | ||||||||||||||||
Property and equipment (including concession assets), net | 0.1 | 2,780.40 | 198.6 | 3,377.20 | — | 6,356.30 | ||||||||||||||||||
Other assets | 1.5 | 50.9 | — | 43.2 | — | 95.6 | ||||||||||||||||||
Total assets | $ | 2,158.80 | $ | 3,241.80 | $ | 669.2 | $ | 4,012.00 | $ | (2,646.4 | ) | $ | 7,435.40 | |||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
Current liabilities | $ | (1,216.5 | ) | $ | 1,580.60 | $ | 130.7 | $ | 267.9 | $ | (32.1 | ) | $ | 730.6 | ||||||||||
Long-term debt | 0.2 | 704.3 | 0.2 | 1,152.20 | — | 1,856.90 | ||||||||||||||||||
Deferred income taxes | (11.7 | ) | 719.8 | 127.6 | 208.9 | — | 1,044.60 | |||||||||||||||||
Other liabilities | 6.6 | 92 | 0.7 | 27.5 | (0.1 | ) | 126.7 | |||||||||||||||||
Stockholders’ equity | 3,380.20 | 145.1 | 104 | 2,355.50 | (2,614.2 | ) | 3,370.60 | |||||||||||||||||
Noncontrolling interest | — | — | 306 | — | — | 306 | ||||||||||||||||||
Total liabilities and equity | $ | 2,158.80 | $ | 3,241.80 | $ | 669.2 | $ | 4,012.00 | $ | (2,646.4 | ) | $ | 7,435.40 | |||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net cash provided | $ | 415.7 | $ | 306.6 | $ | 2.1 | $ | 495.9 | $ | (314.3 | ) | $ | 906 | |||||||||||
Investing activities: | ||||||||||||||||||||||||
Capital expenditures | — | (477.8 | ) | (1.7 | ) | (190.2 | ) | 1.5 | (668.2 | ) | ||||||||||||||
Purchase or replacement of equipment under operating leases | — | (203.6 | ) | — | (98.5 | ) | — | (302.1 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (26.7 | ) | — | (26.7 | ) | ||||||||||||||||
Contribution to consolidated affiliates | (299.6 | ) | — | — | — | 299.6 | — | |||||||||||||||||
Other investing activities | (1.0 | ) | 9.7 | (1.1 | ) | 5.8 | 0.7 | 14.1 | ||||||||||||||||
Net cash used | (300.6 | ) | (671.7 | ) | (2.8 | ) | (309.6 | ) | 301.8 | (982.9 | ) | |||||||||||||
Financing activities: | ||||||||||||||||||||||||
Proceeds from short-term borrowings | — | 15,068.80 | — | 300 | — | 15,368.80 | ||||||||||||||||||
Repayment of short-term borrowings | — | (14,920.2 | ) | — | — | — | (14,920.2 | ) | ||||||||||||||||
Proceeds from issuance of long-term debt | — | 175 | — | — | — | 175 | ||||||||||||||||||
Repayment of long-term debt | — | (423.5 | ) | (0.1 | ) | (84.4 | ) | — | (508.0 | ) | ||||||||||||||
Dividends paid | (116.6 | ) | — | — | (314.3 | ) | 314.3 | (116.6 | ) | |||||||||||||||
Contribution from affiliates | — | 299.3 | 1.1 | 1.4 | (301.8 | ) | — | |||||||||||||||||
Other financing activities | 1.3 | (1.4 | ) | — | (3.5 | ) | — | (3.6 | ) | |||||||||||||||
Net cash provided (used) | (115.3 | ) | 198 | 1 | (100.8 | ) | 12.5 | (4.6 | ) | |||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Net increase (decrease) | (0.2 | ) | (167.1 | ) | 0.3 | 85.5 | — | (81.5 | ) | |||||||||||||||
At beginning of year | 0.4 | 196.1 | 0.2 | 232.8 | — | 429.5 | ||||||||||||||||||
At end of year | $ | 0.2 | $ | 29 | $ | 0.5 | $ | 318.3 | $ | — | $ | 348 | ||||||||||||
Condensed Consolidating Statements of Cash Flows—(Continued) | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net cash provided | $ | 70.7 | $ | 272.2 | $ | 2.6 | $ | 463.8 | $ | (11.0 | ) | $ | 798.3 | |||||||||||
Investing activities: | ||||||||||||||||||||||||
Capital expenditures | — | (417.4 | ) | (2.0 | ) | (175.8 | ) | 0.4 | (594.8 | ) | ||||||||||||||
Purchase or replacement of equipment under operating leases | — | (130.9 | ) | — | (80.9 | ) | — | (211.8 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (31.6 | ) | — | (31.6 | ) | ||||||||||||||||
Proceeds from repayment of loans to affiliates | — | 181.4 | — | — | (181.4 | ) | — | |||||||||||||||||
Loans to affiliates | — | (69.5 | ) | — | — | 69.5 | — | |||||||||||||||||
Other investing activities | (4.9 | ) | (5.1 | ) | (1.1 | ) | 10.8 | 5.2 | 4.9 | |||||||||||||||
Net cash used | (4.9 | ) | (441.5 | ) | (3.1 | ) | (277.5 | ) | (106.3 | ) | (833.3 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 687.6 | — | 1,230.80 | — | 1,918.40 | ||||||||||||||||||
Repayment of long-term debt | — | (344.3 | ) | (0.1 | ) | (998.8 | ) | — | (1,343.2 | ) | ||||||||||||||
Debt costs | — | (7.5 | ) | — | (110.3 | ) | — | (117.8 | ) | |||||||||||||||
Dividends paid | (71.2 | ) | — | — | (11.0 | ) | 11 | (71.2 | ) | |||||||||||||||
Proceeds from loans from affiliates | — | — | — | 69.5 | (69.5 | ) | — | |||||||||||||||||
Repayment of loans from affiliates | — | — | — | (181.4 | ) | 181.4 | — | |||||||||||||||||
Other financing activities | 5.7 | — | 0.7 | 4.9 | (5.6 | ) | 5.7 | |||||||||||||||||
Net cash provided (used) | (65.5 | ) | 335.8 | 0.6 | 3.7 | 117.3 | 391.9 | |||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Net increase | 0.3 | 166.5 | 0.1 | 190 | — | 356.9 | ||||||||||||||||||
At beginning of year | 0.1 | 29.6 | 0.1 | 42.8 | — | 72.6 | ||||||||||||||||||
At end of year | $ | 0.4 | $ | 196.1 | $ | 0.2 | $ | 232.8 | $ | — | $ | 429.5 | ||||||||||||
Condensed Consolidating Statements of Cash Flows—(Continued) | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net cash provided | $ | 53.3 | $ | 236.4 | $ | 2.3 | $ | 389.2 | $ | (8.0 | ) | $ | 673.2 | |||||||||||
Investing activities: | ||||||||||||||||||||||||
Capital expenditures | — | (281.2 | ) | (2.1 | ) | (233.8 | ) | — | (517.1 | ) | ||||||||||||||
Purchase or replacement of equipment under operating leases | — | (19.7 | ) | — | (3.2 | ) | — | (22.9 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (35.2 | ) | — | (35.2 | ) | ||||||||||||||||
Proceeds from repayment of loans to affiliates | — | 87.2 | — | — | (87.2 | ) | — | |||||||||||||||||
Other investing activities | (0.5 | ) | 5.8 | (0.5 | ) | 17.5 | 1 | 23.3 | ||||||||||||||||
Net cash used | (0.5 | ) | (207.9 | ) | (2.6 | ) | (254.7 | ) | (86.2 | ) | (551.9 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 329.6 | — | — | — | 329.6 | ||||||||||||||||||
Repayment of long-term debt | — | (356.2 | ) | (0.1 | ) | (19.6 | ) | — | (375.9 | ) | ||||||||||||||
Debt costs | — | (21.3 | ) | — | (0.8 | ) | — | (22.1 | ) | |||||||||||||||
Dividends paid | (86.1 | ) | — | — | (8.0 | ) | 8 | (86.1 | ) | |||||||||||||||
Repayment of loans from affiliates | — | — | — | (87.2 | ) | 87.2 | — | |||||||||||||||||
Other financing activities | 33.4 | — | 0.5 | 0.5 | (1.0 | ) | 33.4 | |||||||||||||||||
Net cash provided (used) | (52.7 | ) | (47.9 | ) | 0.4 | (115.1 | ) | 94.2 | (121.1 | ) | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Net increase (decrease) | 0.1 | (19.4 | ) | 0.1 | 19.4 | — | 0.2 | |||||||||||||||||
At beginning of year | — | 49 | — | 23.4 | — | 72.4 | ||||||||||||||||||
At end of year | $ | 0.1 | $ | 29.6 | $ | 0.1 | $ | 42.8 | $ | — | $ | 72.6 | ||||||||||||
Geographic_Information
Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Geographic Information | Geographic Information | |||||||||||
The Company strategically manages its rail operations as one reportable business segment over a single coordinated rail network that extends from the midwest and southeast portions of the United States south into Mexico and connects with other Class I railroads. Financial information reported at this level, such as revenues, operating income and cash flows from operations, is used by corporate management, including the Company’s chief operating decision-maker, in evaluating overall financial and operational performance, market strategies, as well as the decisions to allocate capital resources. | ||||||||||||
The Company’s strategic initiatives, which drive its operational direction, are developed and managed at the Company’s headquarters and targets are communicated to its various activity centers. The activity centers are responsible for executing the overall corporate strategy and operating plan established by corporate management as a coordinated system. The role of each region is to manage the operational activities and monitor and control costs over the coordinated rail network. | ||||||||||||
The following tables provide information by geographic area (in millions): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | ||||||||||||
U.S. | $ | 1,372.20 | $ | 1,268.00 | $ | 1,216.70 | ||||||
Mexico | 1,204.90 | 1,101.30 | 1,021.90 | |||||||||
Total revenues | $ | 2,577.10 | $ | 2,369.30 | $ | 2,238.60 | ||||||
Years ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Property and equipment (including concession assets), net | ||||||||||||
U.S. | $ | 4,311.00 | $ | 3,662.20 | ||||||||
Mexico | 2,843.70 | 2,694.10 | ||||||||||
Total property and equipment (including concession assets), net | $ | 7,154.70 | $ | 6,356.30 | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Foreign Currency Hedging | |
During January 2015, the Company entered into foreign currency forward contracts with an aggregate notional amount of $300.0 million to hedge its exposure to fluctuations in the Mexican cash tax obligation due to changes in the value of the Mexican peso against the U.S. dollar. These contracts mature on January 15, 2016 and obligate the Company to purchase a total of Ps.4,480.4 million at a weighted-average exchange rate of Ps.14.93 to each U.S. dollar. The Company has not designated these foreign currency forward contracts as hedging instruments for accounting purposes. The Company will measure the foreign currency forward contracts at fair value each period and will recognize any change in fair value in foreign exchange gain (loss) within the consolidated statements of comprehensive income. | |
Common Stock Dividend | |
On January 29, 2015, the Company’s Board of Directors declared a cash dividend of $0.33 per share payable on April 8, 2015, to common stockholders of record as of March 9, 2015. The aggregate amount of the dividend declared was approximately $36.4 million. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Principles of Consolidation Policy | Principles of Consolidation. The accompanying consolidated financial statements are presented using the accrual basis of accounting and include the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. | |
The equity method of accounting is used for all entities in which the Company or its subsidiaries have significant influence, but not a controlling interest. The Company evaluates less-than-majority-owned investments for consolidation pursuant to consolidation and variable interest entity guidance. The Company does not have any less-than-majority-owned investments requiring consolidation. | ||
Use of Estimates Policy | Use of Estimates. The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include those related to the recoverability and useful lives of assets, personal injury claims, litigation provisions and income taxes. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. | |
Revenue Recognition Policy | Revenue Recognition. The Company recognizes freight revenue based upon the percentage of completion of a commodity movement as a shipment moves from origin to destination, with the related expense recognized as incurred. Other revenues, in general, are recognized when the product is shipped, as services are performed or contractual obligations are fulfilled. | |
Foreign Exchange Gain (Loss) Policy | Foreign Exchange Gain (Loss). For financial reporting purposes, foreign subsidiaries maintain records in U.S. dollars, which is the functional currency. The dollar is the currency that reflects the economic substance of the underlying events and circumstances relevant to the entity. Monetary assets and liabilities denominated in pesos are remeasured into dollars using current exchange rates. The difference between the exchange rate on the date of the transaction and the exchange rate on the settlement date, or balance sheet date if not settled, is included in the income statement as foreign exchange gain or loss. | |
Cash Equivalents Policy | Cash Equivalents. Short-term liquid investments with an initial maturity of three months or less are classified as cash and cash equivalents. | |
Accounts Receivable, net Policy | Accounts Receivable, net. Accounts receivable are net of an allowance for uncollectible accounts as determined by historical experience and adjusted for economic uncertainties or known trends. Accounts are charged to the allowance when a customer enters bankruptcy, when an account has been transferred to a collection agent or submitted for legal action, or when a customer is significantly past due and all available means of collection have been exhausted. | |
Materials and Supplies Policy | Materials and Supplies. Materials and supplies consisting of diesel fuel, items to be used in the maintenance of rolling stock and items to be used in the maintenance or construction of road property are valued at average cost. | |
Derivative Instruments Policy | Derivative Instruments. Derivatives are measured at fair value and recorded on the balance sheet as either assets or liabilities. Changes in the fair value of derivatives are recorded either through current earnings or as other comprehensive income, depending on hedge designation. Gains and losses on derivative instruments classified as cash flow hedges are reported in other comprehensive income and are reclassified into earnings in the periods in which earnings are impacted by the variability of the cash flow of the hedged item. The ineffective portion of all hedge transactions is recognized in current period earnings. | |
Property and Equipment (including Concession Assets) Policy | Property and Equipment (including Concession Assets). Property and equipment are carried at cost and are depreciated primarily on the group method of depreciation, which the Company believes closely approximates a straight line basis over the estimated useful lives of the assets measured in years. Technology assets and leasehold improvements are depreciated using the straight line method over the lesser of the estimated useful lives of the assets or the lease term. Costs incurred by the Company to acquire the concession rights and related assets, as well as subsequent improvements to the concession assets, are capitalized and amortized using the group method of depreciation over the lesser of the current expected Concession term, including probable renewal of an additional 50-year term, or the estimated useful lives of the assets and rights. | |
KCS capitalizes costs for self-constructed additions and improvements to property including direct labor and material, indirect overhead costs, and interest during long-term construction projects. Direct costs are charged to capital projects based on the work performed and the material used. Indirect overhead costs are allocated to capital projects as a standard percentage, which is evaluated annually, and applied to direct labor and material costs. Asset removal activities are performed in conjunction with replacement activities; therefore, removal costs are estimated based on a standard percentage of direct labor and indirect overhead costs related to capital replacement projects. For purchased assets, all costs necessary to make the asset ready for its intended use are capitalized. Expenditures that significantly increase asset values, productive capacity, efficiency, safety or extend useful lives are capitalized. Repair and maintenance costs are expensed as incurred. | ||
The group method of depreciation applies a composite rate to classes of similar assets rather than to individual assets. Composite depreciation rates are based upon the Company’s estimates of the expected average useful lives of assets as well as expected net salvage value at the end of their useful lives. In developing these estimates, the Company utilizes periodic depreciation studies performed by an independent engineering firm. Depreciation rate studies are performed at least every three years for equipment and at least every six years for road property (rail, ties, ballast, etc.). The depreciation studies take into account factors such as: | ||
• | Statistical analysis of historical patterns of use and retirements of each asset class; | |
• | Evaluation of any expected changes in current operations and the outlook for the continued use of the assets; | |
• | Evaluation of technological advances and changes to maintenance practices; and | |
• | Historical and expected salvage to be received upon retirement. | |
The depreciation studies may also indicate that the recorded amount of accumulated depreciation is deficient or in excess of the amount indicated by the study. Any such deficiency or excess is amortized as a component of depreciation expense over the remaining useful lives of the affected asset class, as determined by the study. The Company also monitors these factors in non-study years to determine if adjustments should be made to depreciation rates. The Company completed depreciation studies for KCSM in 2014 and its U.S. based assets in 2012. The impacts of the studies were immaterial to the consolidated financial results for all periods. | ||
Also under the group method of depreciation, the cost of railroad property and equipment (net of salvage or sales proceeds) retired or replaced in the normal course of business is charged to accumulated depreciation with no gain or loss recognized. Actual historical costs are retired when available, such as with equipment costs. The use of estimates in recording the retirement of roadway assets is necessary as it is impractical to track individual, homogeneous network-type assets. Certain types of roadway assets are retired using statistical curves derived from the depreciation studies that indicate the relative distribution of the age of the assets retired. For other roadway assets, historical costs are estimated by (1) deflating current costs using inflation indices published by the U.S. Bureau of Labor Statistics and (2) the estimated useful life of the assets as determined by the depreciation studies. The indices applied to the replacement value are selected because they closely correlate with the major costs of the items comprising the roadway assets. Because of the number of estimates inherent in the depreciation and retirement processes and because it is impossible to precisely estimate each of these variables until a group of assets is completely retired, the Company continually monitors the estimated useful lives of its assets and the accumulated depreciation associated with each asset group to ensure the depreciation rates are appropriate. Gains or losses on dispositions of land or non-group property and abnormal retirements of railroad property are recognized through income. A retirement of railroad property would be considered abnormal if the cause of the retirement is unusual in nature and its actual life is significantly shorter than what would be expected for that group based on the depreciation studies. An abnormal retirement could cause the Company to re-evaluate the estimated useful life of the impacted asset class. | ||
Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value would be reduced to the estimated fair value. Future cash flow estimates for an impairment review would be based on the lowest level of identifiable cash flows, which are the Company’s U.S. and Mexican operations. | ||
Goodwill Policy | Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations. As of December 31, 2014 and 2013, the goodwill balance was $13.2 million, which is included in other assets in the consolidated balance sheets. Goodwill is not amortized, but is reviewed at least annually, or more frequently as indicators warrant, for impairment. An impairment loss would be recognized to the extent that the carrying amount exceeds the assets’ fair values. | |
Fair Value of Financial Instruments Policy | Fair Value of Financial Instruments. Non-financial assets and liabilities are recognized at fair value on a nonrecurring basis. These assets and liabilities are measured at fair value on an ongoing basis but are subject to recognition in the financial statements only in certain circumstances. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into three levels based upon the observability of inputs. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value in its entirety requires judgment and considers factors specific to the asset or liability. | |
Environmental Liabilities Policy | Environmental Liabilities. The Company records liabilities for remediation and restoration costs related to past activities when the Company’s obligation is probable and the costs can be reasonably estimated. Costs of future expenditures for environmental remediation are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Costs of ongoing compliance activities related to current operations are expensed as incurred. | |
Personal Injury Claims Policy | Personal Injury Claims. Personal injury claims in excess of self-insurance levels are insured up to certain coverage amounts, depending on the type of claim and year of occurrence. The Company’s personal injury liability is based on actuarial studies performed on an undiscounted basis by an independent third party actuarial firm and reviewed by management. The liability is based on claims filed and an estimate of claims incurred but not yet reported. Adjustments to the liability are reflected as operating expenses in the period in which the adjustments are known. Legal fees related to personal injury claims are recorded in operating expense in the period incurred. | |
Health and Welfare and Postemployment Benefits Policy | Health and Welfare and Postemployment Benefits. The Company provides certain medical, life and other postemployment benefits to certain active employees and retirees. The Company uses actuaries to assist management in measuring the benefit obligation and cost based on the current plan provisions, employee demographics, and assumptions about financial and demographic factors affecting the probability, timing and amount of expected future benefit payments. Significant assumptions include the discount rate, rate of increase in compensation levels, and the health care cost trend rate. Actuarial gains and losses determined at the measurement date (December 31) are recognized immediately in the consolidated statements of income. | |
Share-Based Compensation Policy | Share-Based Compensation. The Company accounts for all share-based compensation in accordance with fair value recognition provisions. Under this method, compensation expense is measured at grant date fair value net of estimated forfeitures, and is recognized over the requisite service period in which the award is earned. | |
The Company issues treasury stock to settle share-based awards. The Company does not intend to repurchase any shares in 2015 to provide shares to issue as share-based awards; however, management frequently evaluates the appropriateness of the level of shares outstanding. | ||
Income Taxes Policy | Income Taxes. Deferred income tax effects of transactions reported in different periods for financial reporting and income tax return purposes are recorded under the liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. In addition, the Company has not provided U.S. federal income taxes on the undistributed operating earnings of its foreign investments since the earnings will be reinvested indefinitely or the earnings will be remitted in a tax-free transaction. | |
The Company has recognized a deferred tax asset, net of a valuation allowance, for net operating loss and tax credit carryovers. The Company projects sufficient future taxable income to realize the deferred tax asset recorded less the valuation allowance. These projections take into consideration assumptions about inflation rates, currency fluctuations, future income and future capital expenditures. If assumptions or actual conditions change, the deferred tax asset, net of the valuation allowance, will be adjusted to properly reflect the expected tax benefit. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Reconciliation of Basic Earnings Per Share Computation to the Diluted Earnings Per Share Computation | The following table reconciles the basic earnings per share computation to the diluted earnings per share computation (in millions, except share and per share amounts): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income available to common stockholders for purposes of computing basic and diluted earnings per share | $ | 502.4 | $ | 351.2 | $ | 377.1 | ||||||
Weighted-average number of shares outstanding (in thousands): | ||||||||||||
Basic shares | 110,163 | 109,973 | 109,712 | |||||||||
Effect of dilution | 270 | 367 | 368 | |||||||||
Diluted shares | 110,433 | 110,340 | 110,080 | |||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 4.56 | $ | 3.19 | $ | 3.44 | ||||||
Diluted earnings per share | $ | 4.55 | $ | 3.18 | $ | 3.43 | ||||||
Potentially dilutive shares excluded from the calculation (in thousands): | 2014 | 2013 | 2012 | |||||||||
Stock options excluded as their inclusion would be anti-dilutive | 57 | 57 | — | |||||||||
Property_and_Equipment_includi1
Property and Equipment (including Concession Assets) (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Property Plant and Equipment by Type | The following tables list the major categories of property and equipment, including concession assets, as well as the weighted-average composite depreciation rate for each category (in millions): | ||||||||||||||
As of December 31, 2014 | Cost | Accumulated | Net Book | Depreciation | |||||||||||
Depreciation | Value | Rates for 2014 | |||||||||||||
Land | $ | 216.8 | $ | — | $ | 216.8 | N/A | ||||||||
Concession land rights | 141.2 | (22.3 | ) | 118.9 | 1 | % | |||||||||
Rail and other track material | 1,707.60 | (361.1 | ) | 1,346.50 | 1.9-3.2% | ||||||||||
Ties | 1,484.70 | (312.6 | ) | 1,172.10 | 2.0-4.2% | ||||||||||
Grading | 839.6 | (137.9 | ) | 701.7 | 1 | % | |||||||||
Bridges and tunnels | 669.5 | (123.8 | ) | 545.7 | 1.2 | % | |||||||||
Ballast | 649.8 | (170.0 | ) | 479.8 | 2.7-4.8% | ||||||||||
Other (a) | 943.5 | (275.6 | ) | 667.9 | 3.1 | % | |||||||||
Total road property | 6,294.70 | (1,381.0 | ) | 4,913.70 | 2.8 | % | |||||||||
Locomotives | 1,310.30 | (238.3 | ) | 1,072.00 | 4.7 | % | |||||||||
Freight cars | 610.6 | (98.3 | ) | 512.3 | 5.3 | % | |||||||||
Other equipment | 59 | (18.5 | ) | 40.5 | 8.2 | % | |||||||||
Total equipment | 1,979.90 | (355.1 | ) | 1,624.80 | 5 | % | |||||||||
Technology and other | 160.9 | (121.9 | ) | 39 | 13.2 | % | |||||||||
Construction in progress | 241.5 | — | 241.5 | N/A | |||||||||||
Total property and equipment (including concession assets) | $ | 9,035.00 | $ | (1,880.3 | ) | $ | 7,154.70 | N/A | |||||||
_____________ | |||||||||||||||
(a) | Other includes signals, buildings and other road assets. | ||||||||||||||
As of December 31, 2013 | Cost | Accumulated | Net Book | Depreciation | |||||||||||
Depreciation | Value | Rates for 2013 | |||||||||||||
Land | $ | 216.4 | $ | — | $ | 216.4 | N/A | ||||||||
Concession land rights | 141.2 | (20.9 | ) | 120.3 | 1 | % | |||||||||
Rail and other track material | 1,617.80 | (341.1 | ) | 1,276.70 | 1.8-3.1% | ||||||||||
Ties | 1,425.10 | (303.7 | ) | 1,121.40 | 2.0-4.3% | ||||||||||
Grading | 829.6 | (129.7 | ) | 699.9 | 1.1 | % | |||||||||
Bridges and tunnels | 606.4 | (116.5 | ) | 489.9 | 1.2 | % | |||||||||
Ballast | 602.7 | (155.2 | ) | 447.5 | 2.6-4.8% | ||||||||||
Other (a) | 874.1 | (252.8 | ) | 621.3 | 2.9 | % | |||||||||
Total road property | 5,955.70 | (1,299.0 | ) | 4,656.70 | 2.7 | % | |||||||||
Locomotives | 1,017.40 | (193.2 | ) | 824.2 | 5 | % | |||||||||
Freight cars | 362.2 | (78.9 | ) | 283.3 | 3.9 | % | |||||||||
Other equipment | 56.6 | (14.1 | ) | 42.5 | 7.4 | % | |||||||||
Total equipment | 1,436.20 | (286.2 | ) | 1,150.00 | 4.8 | % | |||||||||
Technology and other | 152.8 | (111.3 | ) | 41.5 | 11.6 | % | |||||||||
Construction in progress | 171.4 | — | 171.4 | N/A | |||||||||||
Total property and equipment (including | $ | 8,073.70 | $ | (1,717.4 | ) | $ | 6,356.30 | N/A | |||||||
concession assets) | |||||||||||||||
_____________ | |||||||||||||||
(a) | Other includes signals, buildings and other road assets. |
Other_Balance_Sheet_Captions_T
Other Balance Sheet Captions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Balance Sheet Captions [Abstract] | ||||||||
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities included the following items at December 31 (in millions): | |||||||
2014 | 2013 | |||||||
Accounts payable | $ | 215 | $ | 200.5 | ||||
Accrued wages and vacation | 75.1 | 72.7 | ||||||
Derailments, personal injury and other claim provisions | 42.4 | 47.9 | ||||||
Dividends payable | 31 | 23.8 | ||||||
Income and other taxes | 24.8 | 18.5 | ||||||
Other | 35.6 | 35.2 | ||||||
Accounts payable and accrued liabilities | $ | 423.9 | $ | 398.6 | ||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Schedule of Derivative Instruments in Consolidated Balance Sheets, Fair Value | The following table presents the fair value of derivative instruments included in the consolidated balance sheets (in millions): | |||||||||||||
Derivative Liabilities | ||||||||||||||
Balance Sheet Location | December 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign currency forward contracts | Accounts payable and accrued liabilities | $ | 4.3 | $ | — | |||||||||
Total derivative liabilities | $ | 4.3 | $ | — | ||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income | The following table presents the effects of derivative instruments on the consolidated statements of income for the years ended December 31 (in millions): | |||||||||||||
Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Recognized in Income on Derivative | |||||||||||||
Derivatives not designated as hedging instruments: | 2014 | 2013 | 2012 | |||||||||||
Foreign currency forward contracts | Foreign exchange gain (loss) | $ | (27.9 | ) | $ | (0.7 | ) | $ | — | |||||
Total | $ | (27.9 | ) | $ | (0.7 | ) | $ | — | ||||||
ShortTerm_Borrowings_Tables
Short-Term Borrowings (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Short-term Debt | Short-term borrowings at December 31 (in millions): | |||||||
2014 | 2013 | |||||||
Commercial paper | $ | 150.1 | $ | — | ||||
Other short-term borrowings | 300 | — | ||||||
Total short-term borrowings | $ | 450.1 | $ | — | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||
Schedule of Long-Term Debt Instruments | Long-term debt at December 31 (in millions): | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
KCSR | ||||||||||||||||||||||||||||
Revolving credit facility, variable interest rate, due 2017 | $ | — | $ | — | ||||||||||||||||||||||||
Term loan | — | 245.3 | ||||||||||||||||||||||||||
4.30% senior notes, due 2043 | 446 | 445.9 | ||||||||||||||||||||||||||
3.85% senior notes, due 2023 | 199.8 | 199.7 | ||||||||||||||||||||||||||
RRIF loan, 2.96%, due serially to 2037 | 50.4 | 52 | ||||||||||||||||||||||||||
Capital lease obligations, due serially to 2019 | 8.2 | 9.8 | ||||||||||||||||||||||||||
Other debt obligations | 0.2 | 0.4 | ||||||||||||||||||||||||||
Tex-Mex | ||||||||||||||||||||||||||||
RRIF loan, 4.29%, due serially to 2030 | 37.8 | 39.4 | ||||||||||||||||||||||||||
KCSM | ||||||||||||||||||||||||||||
Revolving credit facility, variable interest rate, due 2017 | — | — | ||||||||||||||||||||||||||
8.0% senior notes, due 2018 | — | 62.3 | ||||||||||||||||||||||||||
2.35% senior notes, due 2020 | 274.7 | 274.7 | ||||||||||||||||||||||||||
3.0% senior notes, due 2023 | 448.4 | 448.2 | ||||||||||||||||||||||||||
Floating rate senior notes, variable interest rate, 0.9331% at December 31, 2014, due 2016 | 250 | 250 | ||||||||||||||||||||||||||
5.737% financing agreement, due 2023 | 39.2 | 43.8 | ||||||||||||||||||||||||||
6.195% financing agreement, due 2023 | 30.4 | 33.9 | ||||||||||||||||||||||||||
9.310% loan agreements, due 2020 | 66.9 | 74.6 | ||||||||||||||||||||||||||
Capital lease obligations, due serially to 2024 | 13.6 | 7.4 | ||||||||||||||||||||||||||
Other debt obligations | — | 1.3 | ||||||||||||||||||||||||||
KCS | ||||||||||||||||||||||||||||
Other debt obligations | 0.2 | 0.2 | ||||||||||||||||||||||||||
Total | 1,865.80 | 2,188.90 | ||||||||||||||||||||||||||
Less: Debt due within one year | 24.8 | 332 | ||||||||||||||||||||||||||
Long-term debt | $ | 1,841.00 | $ | 1,856.90 | ||||||||||||||||||||||||
Schedule Of Future Minimum Payments For Long-Term Debt, Capital And Operating Leases | Minimum annual payments and present value thereof under existing capital leases, other debt maturities and minimum annual rental commitments under non-cancelable operating leases are as follows (in millions): | |||||||||||||||||||||||||||
Long- | Capital Leases | Total | ||||||||||||||||||||||||||
Term | Debt | |||||||||||||||||||||||||||
Years | Debt | Minimum | Less | Net | Operating Leases | Total | ||||||||||||||||||||||
Lease | Interest | Present | ||||||||||||||||||||||||||
Payments | Value | |||||||||||||||||||||||||||
2015 | $ | 20 | $ | 6.8 | $ | 2 | $ | 4.8 | $ | 24.8 | $ | 74.5 | $ | 99.3 | ||||||||||||||
2016 | 270.8 | 6.3 | 1.7 | 4.6 | 275.4 | 67.6 | 343 | |||||||||||||||||||||
2017 | 22 | 4 | 1.3 | 2.7 | 24.7 | 57.3 | 82 | |||||||||||||||||||||
2018 | 35.2 | 3.9 | 1.1 | 2.8 | 38 | 37.3 | 75.3 | |||||||||||||||||||||
2019 | 15.5 | 2.7 | 0.8 | 1.9 | 17.4 | 30.5 | 47.9 | |||||||||||||||||||||
Thereafter | 1,480.50 | 6.7 | 1.7 | 5 | 1,485.50 | 98.5 | 1,584.00 | |||||||||||||||||||||
Total | $ | 1,844.00 | $ | 30.4 | $ | 8.6 | $ | 21.8 | $ | 1,865.80 | $ | 365.7 | $ | 2,231.50 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Components of Income Tax Expense | Tax Expense. Income tax expense consists of the following components (in millions): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | (2.5 | ) | $ | 6 | $ | 2.8 | ||||||||||||||
State and local | 1.2 | 1.9 | 0.7 | ||||||||||||||||||
Foreign | 70 | 79.2 | 36.2 | ||||||||||||||||||
Total current | 68.7 | 87.1 | 39.7 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 112.6 | 99 | 99.2 | ||||||||||||||||||
State and local | 16.9 | 11.9 | (7.4 | ) | |||||||||||||||||
Foreign | 10.6 | 0.3 | 105.5 | ||||||||||||||||||
Total deferred | 140.1 | 111.2 | 197.3 | ||||||||||||||||||
Total income tax expense | $ | 208.8 | $ | 198.3 | $ | 237 | |||||||||||||||
Schedule of Income before Income Taxes, Domestic and Foreign | Income before income taxes consists of the following (in millions): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Income before income taxes: | |||||||||||||||||||||
U.S. | $ | 341.8 | $ | 319.2 | $ | 282.8 | |||||||||||||||
Foreign | 371.3 | 232.4 | 333.6 | ||||||||||||||||||
Total income before income taxes | $ | 713.1 | $ | 551.6 | $ | 616.4 | |||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities follow at December 31 (in millions): | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loss carryovers | $ | 52.2 | $ | 52.6 | |||||||||||||||||
Reserves not currently deductible for tax | 94.5 | 91.2 | |||||||||||||||||||
Other | 69.3 | 64.6 | |||||||||||||||||||
Gross deferred tax assets before valuation allowance | 216 | 208.4 | |||||||||||||||||||
Valuation allowance | (0.9 | ) | (2.7 | ) | |||||||||||||||||
Net deferred tax assets | 215.1 | 205.7 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Property | (1,194.7 | ) | (1,044.6 | ) | |||||||||||||||||
Investments | (68.2 | ) | (66.3 | ) | |||||||||||||||||
Other | (8.4 | ) | (7.8 | ) | |||||||||||||||||
Gross deferred tax liabilities | (1,271.3 | ) | (1,118.7 | ) | |||||||||||||||||
Net deferred tax liability | $ | (1,056.2 | ) | $ | (913.0 | ) | |||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Tax Rates. Differences between the Company’s effective income tax rate and the U.S. federal statutory income tax rate of 35% follow (in millions): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||
Income tax expense using the statutory rate in effect | $ | 249.6 | 35 | % | $ | 193.1 | 35 | % | $ | 215.7 | 35 | % | |||||||||
Tax effect of: | |||||||||||||||||||||
Difference between U.S. and foreign tax rate | (23.0 | ) | (3.2 | %) | (15.4 | ) | (2.8 | %) | (18.4 | ) | (3.0 | %) | |||||||||
Foreign exchange and inflation adjustments (i) | (25.6 | ) | (3.6 | %) | 4.7 | 0.8 | % | 42.3 | 6.9 | % | |||||||||||
State and local income tax provision, net | 11.7 | 1.6 | % | 8.9 | 1.6 | % | 8.4 | 1.3 | % | ||||||||||||
Change in valuation allowances | (1.8 | ) | (0.3 | %) | (0.9 | ) | (0.2 | %) | (11.2 | ) | (1.8 | %) | |||||||||
Other, net | (2.1 | ) | (0.2 | %) | 7.9 | 1.5 | % | 0.2 | — | ||||||||||||
Income tax expense | $ | 208.8 | 29.3 | % | $ | 198.3 | 35.9 | % | $ | 237 | 38.4 | % | |||||||||
_____________________ | |||||||||||||||||||||
(i) | Mexican income taxes are paid in Mexican pesos, and as a result, the effective income tax rate reflects fluctuations in the value of the Mexican peso against the U.S. dollar. Most significantly, any gain or loss from the revaluation of net U.S. dollar-denominated monetary liabilities (primarily debt) into Mexican pesos is included in Mexican taxable income under Mexican tax law. As a result, a strengthening of the Mexican peso against the U.S. dollar for the reporting period will generally increase the Mexican cash tax obligation and the effective income tax rate, and a weakening of the Mexican peso against the U.S. dollar for the reporting period will generally decrease the Mexican cash tax obligation and the effective tax rate. To hedge its exposure to this risk, during 2014 and 2013 the Company entered into foreign currency forward contracts, which are measured at fair value each period and any change in fair value is recognized in foreign exchange gain (loss) within the consolidated statements of income. Refer to Note 8 Derivative Instruments for further information. | ||||||||||||||||||||
Schedule of Change in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Balance at January 1, | $ | 3.5 | $ | 3.6 | |||||||||||||||||
Additions based on tax positions related to the current year | — | — | |||||||||||||||||||
Additions for tax positions of prior years | — | — | |||||||||||||||||||
Reductions for tax positions of prior years | (1.8 | ) | (0.1 | ) | |||||||||||||||||
Balance at December 31, | $ | 1.7 | $ | 3.5 | |||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Schedule of Capital Stock | Information regarding the Company’s capital stock at December 31 follows: | |||||||||||||||
Shares Authorized | Shares Issued | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
$25 par, 4% noncumulative, preferred stock | 840,000 | 840,000 | 649,736 | 649,736 | ||||||||||||
$1 par, preferred stock | 2,000,000 | 2,000,000 | — | — | ||||||||||||
$.01 par, common stock | 400,000,000 | 400,000,000 | 123,352,185 | 123,352,185 | ||||||||||||
Shares outstanding at December 31: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
$25 par, 4% noncumulative, preferred stock | 242,170 | 242,170 | ||||||||||||||
$.01 par, common stock | 110,392,330 | 110,229,229 | ||||||||||||||
Schedule of Treasury Stock | Shares of common stock in Treasury and related activity follow: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Balance at beginning of year | 13,122,956 | 13,220,832 | 13,441,328 | |||||||||||||
Shares issued to fund stock option exercises | (46,100 | ) | (54,209 | ) | (141,728 | ) | ||||||||||
Employee stock purchase plan shares issued | (33,402 | ) | (42,391 | ) | (44,319 | ) | ||||||||||
Nonvested shares issued | (121,865 | ) | (5,723 | ) | (56,136 | ) | ||||||||||
Nonvested shares forfeited | 38,266 | 4,447 | 21,687 | |||||||||||||
Balance at end of year | 12,959,855 | 13,122,956 | 13,220,832 | |||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in the after-tax balances of each component of accumulated other comprehensive income (loss) (in millions): | |||||||||||||||
Postemployment Benefits | Foreign Currency Translation Adjustment | Unrealized Loss on Cash Flow Hedges | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at December 31, 2012 | $ | 0.4 | $ | (2.2 | ) | $ | (0.6 | ) | $ | (2.4 | ) | |||||
Other comprehensive loss before reclassifications | — | — | (0.2 | ) | (0.2 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (0.1 | ) | — | 0.7 | 0.6 | |||||||||||
Net current-period other comprehensive income (loss) | (0.1 | ) | — | 0.5 | 0.4 | |||||||||||
Balance at December 31, 2013 | 0.3 | (2.2 | ) | (0.1 | ) | (2.0 | ) | |||||||||
Other comprehensive loss before reclassifications | — | (1.1 | ) | — | (1.1 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (0.2 | ) | — | 0.1 | (0.1 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (0.2 | ) | (1.1 | ) | 0.1 | (1.2 | ) | |||||||||
Balance at December 31, 2014 | $ | 0.1 | $ | (3.3 | ) | $ | — | $ | (3.2 | ) | ||||||
Schedule of Effects on Net Income of Significant Amounts Being Reclassified out of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the effects on net income of significant amounts being reclassified out of each component of accumulated other comprehensive income (loss) for the year ended December 31 (in millions): | |||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | 2014 | 2013 | 2012 | Affected Line Item in the Consolidated Statements of Income | ||||||||||||
Unrealized losses on cash flow hedges: | ||||||||||||||||
Interest rate swaps | $ | (0.1 | ) | $ | (0.6 | ) | $ | (0.7 | ) | Interest expense | ||||||
— | (0.4 | ) | — | Debt retirement costs | ||||||||||||
Total before tax | (0.1 | ) | (1.0 | ) | (0.7 | ) | ||||||||||
Tax effect | — | 0.3 | 0.3 | Income tax expense | ||||||||||||
Net of tax | (0.1 | ) | (0.7 | ) | (0.4 | ) | ||||||||||
Postemployment benefits: | ||||||||||||||||
Amortization of prior service credit | 0.3 | 0.2 | 0.2 | Compensation and benefits expense | ||||||||||||
Total before tax | 0.3 | 0.2 | 0.2 | |||||||||||||
Tax effect | (0.1 | ) | (0.1 | ) | (0.1 | ) | Income tax expense | |||||||||
Net of tax | 0.2 | 0.1 | 0.1 | |||||||||||||
Total reclassification for the period, net of tax | $ | 0.1 | $ | (0.6 | ) | $ | (0.3 | ) | ||||||||
Schedule of Cash Dividends Declared per Common Share | The following table presents the amount of cash dividends declared per common share by the Company’s Board of Directors: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cash dividends declared per common share | $ | 1.12 | $ | 0.86 | $ | 0.78 | ||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividend yield | 1.19 | % | 0.88 | % | 0 | % | |||||||
Expected volatility | 45.57 | % | 46.12 | % | 46.59 | % | |||||||
Risk-free interest rate | 1.96 | % | 1.11 | % | 0.46 | % | |||||||
Expected term (years) | 6 | 6 | 6 | ||||||||||
Weighted-average grant date fair value of stock options granted | $ | 38.31 | $ | 40.05 | $ | 29.45 | |||||||
Schedule of Share-based Compensation, Stock Option Activity | A summary of stock option activity is as follows: | ||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | ||||||||||||
Per Share | Term | ||||||||||||
In years | In millions | ||||||||||||
Options outstanding at December 31, 2013 | 362,759 | $ | 54.94 | ||||||||||
Granted | 53,021 | 94.23 | |||||||||||
Exercised | (46,100 | ) | 43.93 | ||||||||||
Forfeited or expired | (13,582 | ) | 91.32 | ||||||||||
Options outstanding at December 31, 2014 | 356,098 | $ | 60.83 | 6.58 | $ | 21.8 | |||||||
Vested and expected to vest at December 31, 2014 | 353,769 | $ | 60.64 | 6.57 | $ | 21.7 | |||||||
Exercisable at December 31, 2014 | 256,888 | $ | 49.62 | 5.88 | $ | 18.6 | |||||||
Schedule of Stock Option Exercise Activity | Additional information regarding stock option exercises appears in the table below (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Aggregate grant-date fair value of stock options vested | $ | 2.3 | $ | 1.8 | $ | 1.3 | |||||||
Intrinsic value of stock options exercised | 3.3 | 5 | 12.1 | ||||||||||
Cash received from option exercises | 2 | 1.5 | 1.9 | ||||||||||
Tax benefit realized from options exercised during the annual period | 1.3 | 1.9 | 4.6 | ||||||||||
Schedule of Share-based Compensation, Nonvested Stock Activity | A summary of nonvested stock activity is as follows: | ||||||||||||
Number of | Weighted- | Aggregate | |||||||||||
Shares | Average Grant | Intrinsic | |||||||||||
Date Fair | Value | ||||||||||||
Value | |||||||||||||
In millions | |||||||||||||
Nonvested stock at December 31, 2013 | 202,060 | $ | 63 | ||||||||||
Granted | 75,541 | 105.04 | |||||||||||
Vested | (82,642 | ) | 54.53 | ||||||||||
Forfeited | (38,266 | ) | 66.45 | ||||||||||
Nonvested stock at December 31, 2014 | 156,693 | $ | 86.89 | $ | 19.1 | ||||||||
Schedule of Share-based Compensation, Performance Based Award Activity | A summary of performance based nonvested stock activity at target is as follows: | ||||||||||||
Target Number of Shares * | Weighted-Average Grant Date Fair Value | ||||||||||||
Nonvested stock, at December 31, 2013 | 178,886 | $ | 69.19 | ||||||||||
Granted | 43,110 | 94.23 | |||||||||||
Vested | (72,900 | ) | 52.66 | ||||||||||
Forfeited | (17,031 | ) | 86.59 | ||||||||||
Nonvested stock, at December 31, 2014 | 132,065 | $ | 84.24 | ||||||||||
_____________________ | |||||||||||||
* For the 2014 Awards and the 2013 Awards, participants in the aggregate can earn up to a maximum of 74,298 and 52,838 shares, respectively. For the 2012 Awards, the performance shares earned were 45,000. | |||||||||||||
Schedule of Employee Stock Purchase Plan Activity | The following table summarizes activity related to the various ESPP offerings: | ||||||||||||
Exercise Date | Received | ||||||||||||
from | |||||||||||||
Date | Purchase | Shares | Employees(i) | ||||||||||
Issued | Price | Issued | |||||||||||
In millions | |||||||||||||
July 2014 offering | January 9, 2015 | $ | 96.48 | 17,639 | $ | 1.7 | |||||||
January 2014 offering | July 10, 2014 | 96.76 | 17,026 | 1.6 | |||||||||
July 2013 offering | January 13, 2014 | 97.58 | 16,376 | 1.6 | |||||||||
January 2013 offering | July 12, 2013 | 77.53 | 19,292 | 1.5 | |||||||||
July 2012 offering | January 14, 2013 | 61.73 | 23,099 | 1.4 | |||||||||
January 2012 offering | July 13, 2012 | 61.84 | 21,559 | 1.3 | |||||||||
_____________________ | |||||||||||||
(i) | Represents amounts received from employees through payroll deductions for share purchases under applicable offering. | ||||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The weighted-average assumptions used for each of the respective periods were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividend yield | 0.99 | % | 0.9 | % | 0.59 | % | |||||||
Expected volatility | 19.03 | % | 18.3 | % | 28.97 | % | |||||||
Risk-free interest rate | 0.1 | % | 0.13 | % | 0.14 | % | |||||||
Expected term (years) | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted-average grant date fair value | $ | 17.13 | $ | 14.48 | $ | 12.4 | |||||||
Postemployment_Benefits_Tables
Postemployment Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Postemployment Benefits [Abstract] | ||||||||||||||||||||||||
Schedule of Net Benefit Costs | Components of the net cost (benefit) for these plans were as follows for the years ended December 31 (in millions): | |||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.8 | $ | 0.9 | $ | 0.9 | ||||||||||||
Interest cost | 0.2 | 0.2 | 0.2 | 1 | 0.9 | 0.8 | ||||||||||||||||||
Actuarial (gain) loss (i) | 0.9 | (0.9 | ) | 0.1 | 3.8 | (1.0 | ) | 3.1 | ||||||||||||||||
Foreign currency (gain) loss | — | — | — | (1.5 | ) | (0.1 | ) | 0.6 | ||||||||||||||||
Prior service credit (ii) | (0.2 | ) | (0.2 | ) | (0.2 | ) | — | — | — | |||||||||||||||
Net periodic cost (benefit) recognized | $ | 1 | $ | (0.8 | ) | $ | 0.2 | $ | 4.1 | $ | 0.7 | $ | 5.4 | |||||||||||
_____________________ | ||||||||||||||||||||||||
(i) | Net benefit costs above do not include a component for the amortization of actuarial gains or losses as the Company’s policy is to recognize such gains and losses immediately. | |||||||||||||||||||||||
(ii) | During 2005, the Company revised its medical plan to exclude prescription drug coverage available under Medicare part D. This negative plan amendment generated an unrecognized prior service benefit of $2.3 million which is being amortized over the estimated remaining life of the affected participants of 9.5 years. | |||||||||||||||||||||||
Schedule Of Changes In Projected Benefit Obligation And Plan Assets | The following table reconciles the change in the benefit obligation, fair value of plan assets and the accrued benefit cost as of and for each of the years ended December 31 (in millions): | |||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Benefit obligation at beginning of year | $ | 5.5 | $ | 6.5 | $ | 12.8 | $ | 13.2 | ||||||||||||||||
Service cost | 0.1 | 0.1 | 0.8 | 0.9 | ||||||||||||||||||||
Interest cost | 0.2 | 0.2 | 1 | 0.9 | ||||||||||||||||||||
Actuarial (gain) loss | 0.9 | (0.9 | ) | 3.8 | (1.0 | ) | ||||||||||||||||||
Foreign currency (gain) loss | — | — | (1.5 | ) | (0.1 | ) | ||||||||||||||||||
Benefits paid, net of retiree contributions | (0.4 | ) | (0.4 | ) | (0.8 | ) | (1.1 | ) | ||||||||||||||||
Benefit obligation at end of year | $ | 6.3 | $ | 5.5 | $ | 16.1 | $ | 12.8 | ||||||||||||||||
Schedule of Assumptions Used | Weighted-average assumptions used to determine benefit obligations were as follows for the years ended December 31: | |||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 3.75 | % | 4.5 | % | 8 | % | 8.25 | % | ||||||||||||||||
Rate of compensation increase | n/a | n/a | 4.5 | % | 4.5 | % | ||||||||||||||||||
Weighted-average assumptions used to determine net benefit cost for the periods were as follows for the years ended December 31: | ||||||||||||||||||||||||
Health and Welfare | Postemployment Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.5 | % | 3.5 | % | 8.25 | % | 6.75 | % | ||||||||||||||||
Rate of compensation increase | n/a | n/a | 4.5 | % | 4.5 | % | ||||||||||||||||||
The following table presents the assumed health care cost trends: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Health care trend rate for next year | 6.5 | % | 6.5 | % | 8 | % | ||||||||||||||||||
Ultimate trend rate | 5 | % | 5 | % | 5 | % | ||||||||||||||||||
Year that rate reaches ultimate rate | 2021 | 2023 | 2029 | |||||||||||||||||||||
Schedule of Expected Benefit Payments | The following table presents benefit payments expected to be paid, which reflect expected future service, as appropriate, for each of the next five years and the aggregate five years thereafter (in millions): | |||||||||||||||||||||||
Year | Health and | Postemployment | ||||||||||||||||||||||
Welfare | Benefits | |||||||||||||||||||||||
2015 | $ | 0.5 | $ | 1 | ||||||||||||||||||||
2016 | 0.5 | 1 | ||||||||||||||||||||||
2017 | 0.5 | 1.1 | ||||||||||||||||||||||
2018 | 0.4 | 1.3 | ||||||||||||||||||||||
2019 | 0.3 | 1.4 | ||||||||||||||||||||||
2020-2024 | 1.7 | 8.9 | ||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Personal Injury Liability Activity | The personal injury liability activity was as follows (in millions): | |||||||
2014 | 2013 | |||||||
Balance at beginning of year | $ | 31.2 | $ | 34.4 | ||||
Accruals | 8.8 | 8.8 | ||||||
Change in estimate | (4.2 | ) | 1.3 | |||||
Payments | (6.5 | ) | (13.3 | ) | ||||
Balance at end of year | $ | 29.3 | $ | 31.2 | ||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||
Fourth | Third | Second | First | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 642.5 | $ | 677.5 | $ | 649.7 | $ | 607.4 | ||||||||
Operating income | 213.9 | 229.4 | 205.8 | (i) | 160 | (ii) | ||||||||||
Net income | 141.7 | 138.4 | 130.2 | 94 | ||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 141 | 138.1 | 129.8 | 93.7 | ||||||||||||
Per share data: | ||||||||||||||||
Basic earnings per common share | $ | 1.28 | $ | 1.25 | $ | 1.18 | $ | 0.85 | ||||||||
Diluted earnings per common share | 1.28 | 1.25 | 1.18 | 0.85 | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 615.6 | $ | 621.6 | $ | 579.3 | $ | 552.8 | ||||||||
Operating income | 196.1 | 200.3 | 179.3 | 162.9 | ||||||||||||
Net income | 114.4 | 119 | 15.7 | (iii) | 104.2 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 113.8 | 118.4 | 15.4 | (iii) | 103.8 | |||||||||||
Per share data: | ||||||||||||||||
Basic earnings per common share | $ | 1.03 | $ | 1.08 | $ | 0.14 | $ | 0.94 | ||||||||
Diluted earnings per common share | 1.03 | 1.07 | 0.14 | 0.94 | ||||||||||||
_____________________ | ||||||||||||||||
(i) | During the second quarter of 2014, the Company recognized pre-tax lease termination costs of $8.4 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||||
(ii) | During the first quarter of 2014, the Company recognized pre-tax lease termination costs of $29.9 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||||
(iii) | During the second quarter of 2013, the Company recognized pre-tax debt retirement costs of $111.4 million, related to debt restructuring activities that occurred during the period. |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ||||||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Revenues | $ | — | $ | 1,215.80 | $ | 48.7 | $ | 1,353.70 | $ | (41.1 | ) | $ | 2,577.10 | |||||||||||
Operating expenses | 7.6 | 881.6 | 41.8 | 879.1 | (42.1 | ) | 1,768.00 | |||||||||||||||||
Operating income (loss) | (7.6 | ) | 334.2 | 6.9 | 474.6 | 1 | 809.1 | |||||||||||||||||
Equity in net earnings (losses) of unconsolidated affiliates | 476.7 | (0.1 | ) | 5.5 | 18.9 | (479.9 | ) | 21.1 | ||||||||||||||||
Interest expense | (0.1 | ) | (83.3 | ) | — | (39.6 | ) | 50.2 | (72.8 | ) | ||||||||||||||
Debt retirement costs | — | (2.7 | ) | — | (3.9 | ) | — | (6.6 | ) | |||||||||||||||
Foreign exchange loss | — | — | — | (35.5 | ) | — | (35.5 | ) | ||||||||||||||||
Other income (expense), net | 50.1 | 0.2 | — | (1.2 | ) | (51.3 | ) | (2.2 | ) | |||||||||||||||
Income before income taxes | 519.1 | 248.3 | 12.4 | 413.3 | (480.0 | ) | 713.1 | |||||||||||||||||
Income tax expense | 16.5 | 94.7 | 4.4 | 93.2 | — | 208.8 | ||||||||||||||||||
Net income | 502.6 | 153.6 | 8 | 320.1 | (480.0 | ) | 504.3 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1.7 | — | — | 1.7 | ||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 502.6 | 153.6 | 6.3 | 320.1 | (480.0 | ) | 502.6 | |||||||||||||||||
Other comprehensive income (loss) | (1.2 | ) | 0.1 | — | (1.8 | ) | 1.7 | (1.2 | ) | |||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 501.4 | $ | 153.7 | $ | 6.3 | $ | 318.3 | $ | (478.3 | ) | $ | 501.4 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income—(Continued) | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Revenues | $ | — | $ | 1,115.00 | $ | 42.6 | $ | 1,251.90 | $ | (40.2 | ) | $ | 2,369.30 | |||||||||||
Operating expenses | 4.8 | 829.6 | 39 | 800.1 | (42.8 | ) | 1,630.70 | |||||||||||||||||
Operating income (loss) | (4.8 | ) | 285.4 | 3.6 | 451.8 | 2.6 | 738.6 | |||||||||||||||||
Equity in net earnings of unconsolidated affiliates | 318.3 | 1.1 | 6.3 | 15.7 | (322.6 | ) | 18.8 | |||||||||||||||||
Interest expense | (0.1 | ) | (68.5 | ) | 0.1 | (59.3 | ) | 47.2 | (80.6 | ) | ||||||||||||||
Debt retirement costs | — | (1.5 | ) | — | (117.7 | ) | — | (119.2 | ) | |||||||||||||||
Foreign exchange loss | — | (1.3 | ) | — | (3.9 | ) | — | (5.2 | ) | |||||||||||||||
Other income (expense), net | 44.6 | 5.1 | (0.1 | ) | (0.6 | ) | (49.8 | ) | (0.8 | ) | ||||||||||||||
Income before income taxes | 358 | 220.3 | 9.9 | 286 | (322.6 | ) | 551.6 | |||||||||||||||||
Income tax expense | 17.6 | 81.2 | 2.9 | 96.6 | — | 198.3 | ||||||||||||||||||
Net income | 340.4 | 139.1 | 7 | 189.4 | (322.6 | ) | 353.3 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1.9 | — | — | 1.9 | ||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 340.4 | 139.1 | 5.1 | 189.4 | (322.6 | ) | 351.4 | |||||||||||||||||
Other comprehensive income (loss) | 0.4 | 0.5 | — | (0.1 | ) | (0.4 | ) | 0.4 | ||||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 340.8 | $ | 139.6 | $ | 5.1 | $ | 189.3 | $ | (323.0 | ) | $ | 351.8 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income—(Continued) | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Revenues | $ | — | $ | 1,079.70 | $ | 29.9 | $ | 1,164.70 | $ | (35.7 | ) | $ | 2,238.60 | |||||||||||
Operating expenses | 4.2 | 805 | 34 | 717.7 | (38.2 | ) | 1,522.70 | |||||||||||||||||
Operating income (loss) | (4.2 | ) | 274.7 | (4.1 | ) | 447 | 2.5 | 715.9 | ||||||||||||||||
Equity in net earnings of unconsolidated affiliates | 218.9 | 2.6 | 6.6 | 15.5 | (224.3 | ) | 19.3 | |||||||||||||||||
Interest expense | (0.1 | ) | (65.0 | ) | — | (88.2 | ) | 52.9 | (100.4 | ) | ||||||||||||||
Debt retirement costs | — | (19.6 | ) | — | (0.5 | ) | — | (20.1 | ) | |||||||||||||||
Foreign exchange gain | — | — | — | 2.7 | — | 2.7 | ||||||||||||||||||
Other income (expense), net | 46.5 | 11.7 | — | (128.5 | ) | 69.3 | (1.0 | ) | ||||||||||||||||
Income before income taxes | 261.1 | 204.4 | 2.5 | 248 | (99.6 | ) | 616.4 | |||||||||||||||||
Income tax expense (benefit) | 8.4 | 74.4 | (0.2 | ) | 154.4 | — | 237 | |||||||||||||||||
Net income | 252.7 | 130 | 2.7 | 93.6 | (99.6 | ) | 379.4 | |||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 2.1 | — | — | 2.1 | ||||||||||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 252.7 | 130 | 0.6 | 93.6 | (99.6 | ) | 377.3 | |||||||||||||||||
Other comprehensive income (loss) | (0.2 | ) | (0.6 | ) | — | 0.9 | (0.3 | ) | (0.2 | ) | ||||||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | $ | 252.5 | $ | 129.4 | $ | 0.6 | $ | 94.5 | $ | (99.9 | ) | $ | 377.1 | |||||||||||
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets | |||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Current assets | $ | 2.7 | $ | 281.7 | $ | 6 | $ | 562.5 | $ | (34.6 | ) | $ | 818.3 | |||||||||||
Investments | — | 3.9 | — | 32.5 | — | 36.4 | ||||||||||||||||||
Investments in consolidated subsidiaries | 2,616.00 | (4.3 | ) | 471.3 | — | (3,083.0 | ) | — | ||||||||||||||||
Property and equipment (including concession assets), net | — | 3,385.50 | 193.3 | 3,575.90 | — | 7,154.70 | ||||||||||||||||||
Other assets | 1.6 | 45.2 | — | 34.8 | — | 81.6 | ||||||||||||||||||
Total assets | $ | 2,620.30 | $ | 3,712.00 | $ | 670.6 | $ | 4,205.70 | $ | (3,117.6 | ) | $ | 8,091.00 | |||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
Current liabilities | $ | (1,156.0 | ) | $ | 1,484.70 | $ | 115.6 | $ | 489.1 | $ | (34.6 | ) | $ | 898.8 | ||||||||||
Long-term debt | 0.2 | 701 | 0.2 | 1,139.60 | — | 1,841.00 | ||||||||||||||||||
Deferred income taxes | 7.3 | 835.8 | 132 | 181.2 | — | 1,156.30 | ||||||||||||||||||
Other liabilities | 3.7 | 94.4 | 0.7 | 32 | — | 130.8 | ||||||||||||||||||
Stockholders’ equity | 3,765.10 | 596.1 | 113.5 | 2,363.80 | (3,083.0 | ) | 3,755.50 | |||||||||||||||||
Noncontrolling interest | — | — | 308.6 | — | — | 308.6 | ||||||||||||||||||
Total liabilities and equity | $ | 2,620.30 | $ | 3,712.00 | $ | 670.6 | $ | 4,205.70 | $ | (3,117.6 | ) | $ | 8,091.00 | |||||||||||
Condensed Consolidating Balance Sheets—(Continued) | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Current assets | $ | 2.6 | $ | 403 | $ | 8.8 | $ | 560.1 | $ | (32.1 | ) | $ | 942.4 | |||||||||||
Investments | — | 9.6 | — | 31.5 | — | 41.1 | ||||||||||||||||||
Investments in consolidated subsidiaries | 2,154.60 | (2.1 | ) | 461.8 | — | (2,614.3 | ) | — | ||||||||||||||||
Property and equipment (including concession assets), net | 0.1 | 2,780.40 | 198.6 | 3,377.20 | — | 6,356.30 | ||||||||||||||||||
Other assets | 1.5 | 50.9 | — | 43.2 | — | 95.6 | ||||||||||||||||||
Total assets | $ | 2,158.80 | $ | 3,241.80 | $ | 669.2 | $ | 4,012.00 | $ | (2,646.4 | ) | $ | 7,435.40 | |||||||||||
Liabilities and equity: | ||||||||||||||||||||||||
Current liabilities | $ | (1,216.5 | ) | $ | 1,580.60 | $ | 130.7 | $ | 267.9 | $ | (32.1 | ) | $ | 730.6 | ||||||||||
Long-term debt | 0.2 | 704.3 | 0.2 | 1,152.20 | — | 1,856.90 | ||||||||||||||||||
Deferred income taxes | (11.7 | ) | 719.8 | 127.6 | 208.9 | — | 1,044.60 | |||||||||||||||||
Other liabilities | 6.6 | 92 | 0.7 | 27.5 | (0.1 | ) | 126.7 | |||||||||||||||||
Stockholders’ equity | 3,380.20 | 145.1 | 104 | 2,355.50 | (2,614.2 | ) | 3,370.60 | |||||||||||||||||
Noncontrolling interest | — | — | 306 | — | — | 306 | ||||||||||||||||||
Total liabilities and equity | $ | 2,158.80 | $ | 3,241.80 | $ | 669.2 | $ | 4,012.00 | $ | (2,646.4 | ) | $ | 7,435.40 | |||||||||||
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net cash provided | $ | 415.7 | $ | 306.6 | $ | 2.1 | $ | 495.9 | $ | (314.3 | ) | $ | 906 | |||||||||||
Investing activities: | ||||||||||||||||||||||||
Capital expenditures | — | (477.8 | ) | (1.7 | ) | (190.2 | ) | 1.5 | (668.2 | ) | ||||||||||||||
Purchase or replacement of equipment under operating leases | — | (203.6 | ) | — | (98.5 | ) | — | (302.1 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (26.7 | ) | — | (26.7 | ) | ||||||||||||||||
Contribution to consolidated affiliates | (299.6 | ) | — | — | — | 299.6 | — | |||||||||||||||||
Other investing activities | (1.0 | ) | 9.7 | (1.1 | ) | 5.8 | 0.7 | 14.1 | ||||||||||||||||
Net cash used | (300.6 | ) | (671.7 | ) | (2.8 | ) | (309.6 | ) | 301.8 | (982.9 | ) | |||||||||||||
Financing activities: | ||||||||||||||||||||||||
Proceeds from short-term borrowings | — | 15,068.80 | — | 300 | — | 15,368.80 | ||||||||||||||||||
Repayment of short-term borrowings | — | (14,920.2 | ) | — | — | — | (14,920.2 | ) | ||||||||||||||||
Proceeds from issuance of long-term debt | — | 175 | — | — | — | 175 | ||||||||||||||||||
Repayment of long-term debt | — | (423.5 | ) | (0.1 | ) | (84.4 | ) | — | (508.0 | ) | ||||||||||||||
Dividends paid | (116.6 | ) | — | — | (314.3 | ) | 314.3 | (116.6 | ) | |||||||||||||||
Contribution from affiliates | — | 299.3 | 1.1 | 1.4 | (301.8 | ) | — | |||||||||||||||||
Other financing activities | 1.3 | (1.4 | ) | — | (3.5 | ) | — | (3.6 | ) | |||||||||||||||
Net cash provided (used) | (115.3 | ) | 198 | 1 | (100.8 | ) | 12.5 | (4.6 | ) | |||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Net increase (decrease) | (0.2 | ) | (167.1 | ) | 0.3 | 85.5 | — | (81.5 | ) | |||||||||||||||
At beginning of year | 0.4 | 196.1 | 0.2 | 232.8 | — | 429.5 | ||||||||||||||||||
At end of year | $ | 0.2 | $ | 29 | $ | 0.5 | $ | 318.3 | $ | — | $ | 348 | ||||||||||||
Condensed Consolidating Statements of Cash Flows—(Continued) | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net cash provided | $ | 70.7 | $ | 272.2 | $ | 2.6 | $ | 463.8 | $ | (11.0 | ) | $ | 798.3 | |||||||||||
Investing activities: | ||||||||||||||||||||||||
Capital expenditures | — | (417.4 | ) | (2.0 | ) | (175.8 | ) | 0.4 | (594.8 | ) | ||||||||||||||
Purchase or replacement of equipment under operating leases | — | (130.9 | ) | — | (80.9 | ) | — | (211.8 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (31.6 | ) | — | (31.6 | ) | ||||||||||||||||
Proceeds from repayment of loans to affiliates | — | 181.4 | — | — | (181.4 | ) | — | |||||||||||||||||
Loans to affiliates | — | (69.5 | ) | — | — | 69.5 | — | |||||||||||||||||
Other investing activities | (4.9 | ) | (5.1 | ) | (1.1 | ) | 10.8 | 5.2 | 4.9 | |||||||||||||||
Net cash used | (4.9 | ) | (441.5 | ) | (3.1 | ) | (277.5 | ) | (106.3 | ) | (833.3 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 687.6 | — | 1,230.80 | — | 1,918.40 | ||||||||||||||||||
Repayment of long-term debt | — | (344.3 | ) | (0.1 | ) | (998.8 | ) | — | (1,343.2 | ) | ||||||||||||||
Debt costs | — | (7.5 | ) | — | (110.3 | ) | — | (117.8 | ) | |||||||||||||||
Dividends paid | (71.2 | ) | — | — | (11.0 | ) | 11 | (71.2 | ) | |||||||||||||||
Proceeds from loans from affiliates | — | — | — | 69.5 | (69.5 | ) | — | |||||||||||||||||
Repayment of loans from affiliates | — | — | — | (181.4 | ) | 181.4 | — | |||||||||||||||||
Other financing activities | 5.7 | — | 0.7 | 4.9 | (5.6 | ) | 5.7 | |||||||||||||||||
Net cash provided (used) | (65.5 | ) | 335.8 | 0.6 | 3.7 | 117.3 | 391.9 | |||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Net increase | 0.3 | 166.5 | 0.1 | 190 | — | 356.9 | ||||||||||||||||||
At beginning of year | 0.1 | 29.6 | 0.1 | 42.8 | — | 72.6 | ||||||||||||||||||
At end of year | $ | 0.4 | $ | 196.1 | $ | 0.2 | $ | 232.8 | $ | — | $ | 429.5 | ||||||||||||
Condensed Consolidating Statements of Cash Flows—(Continued) | ||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||
Parent | KCSR | Guarantor | Non-Guarantor | Consolidating | Consolidated | |||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | KCS | |||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net cash provided | $ | 53.3 | $ | 236.4 | $ | 2.3 | $ | 389.2 | $ | (8.0 | ) | $ | 673.2 | |||||||||||
Investing activities: | ||||||||||||||||||||||||
Capital expenditures | — | (281.2 | ) | (2.1 | ) | (233.8 | ) | — | (517.1 | ) | ||||||||||||||
Purchase or replacement of equipment under operating leases | — | (19.7 | ) | — | (3.2 | ) | — | (22.9 | ) | |||||||||||||||
Property investments in MSLLC | — | — | — | (35.2 | ) | — | (35.2 | ) | ||||||||||||||||
Proceeds from repayment of loans to affiliates | — | 87.2 | — | — | (87.2 | ) | — | |||||||||||||||||
Other investing activities | (0.5 | ) | 5.8 | (0.5 | ) | 17.5 | 1 | 23.3 | ||||||||||||||||
Net cash used | (0.5 | ) | (207.9 | ) | (2.6 | ) | (254.7 | ) | (86.2 | ) | (551.9 | ) | ||||||||||||
Financing activities: | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 329.6 | — | — | — | 329.6 | ||||||||||||||||||
Repayment of long-term debt | — | (356.2 | ) | (0.1 | ) | (19.6 | ) | — | (375.9 | ) | ||||||||||||||
Debt costs | — | (21.3 | ) | — | (0.8 | ) | — | (22.1 | ) | |||||||||||||||
Dividends paid | (86.1 | ) | — | — | (8.0 | ) | 8 | (86.1 | ) | |||||||||||||||
Repayment of loans from affiliates | — | — | — | (87.2 | ) | 87.2 | — | |||||||||||||||||
Other financing activities | 33.4 | — | 0.5 | 0.5 | (1.0 | ) | 33.4 | |||||||||||||||||
Net cash provided (used) | (52.7 | ) | (47.9 | ) | 0.4 | (115.1 | ) | 94.2 | (121.1 | ) | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Net increase (decrease) | 0.1 | (19.4 | ) | 0.1 | 19.4 | — | 0.2 | |||||||||||||||||
At beginning of year | — | 49 | — | 23.4 | — | 72.4 | ||||||||||||||||||
At end of year | $ | 0.1 | $ | 29.6 | $ | 0.1 | $ | 42.8 | $ | — | $ | 72.6 | ||||||||||||
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables provide information by geographic area (in millions): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | ||||||||||||
U.S. | $ | 1,372.20 | $ | 1,268.00 | $ | 1,216.70 | ||||||
Mexico | 1,204.90 | 1,101.30 | 1,021.90 | |||||||||
Total revenues | $ | 2,577.10 | $ | 2,369.30 | $ | 2,238.60 | ||||||
Years ended | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Property and equipment (including concession assets), net | ||||||||||||
U.S. | $ | 4,311.00 | $ | 3,662.20 | ||||||||
Mexico | 2,843.70 | 2,694.10 | ||||||||||
Total property and equipment (including concession assets), net | $ | 7,154.70 | $ | 6,356.30 | ||||||||
Description_of_the_Business_De
Description of the Business (Details) | 12 Months Ended |
Dec. 31, 2014 | |
MSLLC [Member] | |
Description Of The Business [Line Items] | |
Ownership percentage of MSLLC | 70.00% |
PCRC [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 50.00% |
Southern Capital [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 50.00% |
FTVM [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 25.00% |
PTC-220 [Member] | |
Description Of The Business [Line Items] | |
Equity investment ownership percentage | 14.00% |
KCSM [Member] | |
Description Of The Business [Line Items] | |
Initial percentage of gross revenue payable under railroad Concession to Mexican Government | 0.50% |
Initial period of time for payments due under railroad Concession to Mexican Government | 15 years |
Date the percentage of revenue payable to the Mexican government increased under the Concession | 24-Jun-12 |
Percentage of gross revenue payable under railroad Concession to Mexican Government after initial fifteen year period | 1.25% |
KCSM [Member] | Maximum [Member] | |
Description Of The Business [Line Items] | |
Additional Concession renewal period | 50 years |
KCSR [Member] | Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | |
Description Of The Business [Line Items] | |
Percentage of employees covered by collective bargaining or labor agreements | 80.00% |
KCSM Servicios [Member] | Unionized Employees Concentration Risk [Member] | Number of Employees, Total [Member] | |
Description Of The Business [Line Items] | |
Percentage of employees covered by collective bargaining or labor agreements | 80.00% |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $8.70 | $7.50 | |
Bad debt expense | 0.4 | 0.6 | 1.3 |
Goodwill | $13.20 | $13.20 |
Earnings_Per_Share_Reconciliat
Earnings Per Share Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net Income available to common stockholders for purposes of computing basic earnings per share | $502.40 | $351.20 | $377.10 | ||||||||
Net Income available to common stockholders for purposes of computing diluted earnings per share | $502.40 | $351.20 | $377.10 | ||||||||
Weighted-average number of shares outstanding reconciliation (in thousands): | |||||||||||
Basic shares | 110,163 | 109,973 | 109,712 | ||||||||
Effect of dilution | 270 | 367 | 368 | ||||||||
Diluted | 110,433 | 110,340 | 110,080 | ||||||||
Earnings per Share [Abstract] | |||||||||||
Basic earnings per share | $1.28 | $1.25 | $1.18 | $0.85 | $1.03 | $1.08 | $0.14 | $0.94 | $4.56 | $3.19 | $3.44 |
Diluted earnings per share | $1.28 | $1.25 | $1.18 | $0.85 | $1.03 | $1.07 | $0.14 | $0.94 | $4.55 | $3.18 | $3.43 |
Stock Options [Member] | |||||||||||
Potentially dilutive shares excluded from the calculation [Abstract] | |||||||||||
Stock options excluded as their inclusion would be anti-dilutive | 57 | 57 | 0 |
Lease_Termination_Costs_Detail
Lease Termination Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Lease Termination Costs [Line Items] | |||||
Lease termination costs included in operating expenses | $8.40 | $29.90 | $38.30 | $0 | $0 |
Railroad Transportation Equipment [Member] | |||||
Lease Termination Costs [Line Items] | |||||
Property, plant and equipment additions | $300.70 |
Property_and_Equipment_includi2
Property and Equipment (including Concession Assets) (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Accumulated amortization | $483.10 | $444.10 | |
Concession assets, net of accumulated amortization | 2,007.60 | 1,951 | |
Capitalized interest during period | 0.9 | 1.1 | 0.9 |
Depreciation and amortization | $258.10 | $223.30 | $198.80 |
Property_and_Equipment_includi3
Property and Equipment (including Concession Assets) Schedule of Property and Equipment (including Concession Assets) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property, Plant and Equipment [Line Items] | ||||
Cost | $9,035 | $8,073.70 | ||
Accumulated Depreciation | -1,880.30 | -1,717.40 | ||
Net Book Value | 7,154.70 | 6,356.30 | ||
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 216.8 | 216.4 | ||
Accumulated Depreciation | 0 | 0 | ||
Net Book Value | 216.8 | 216.4 | ||
Concession land rights [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 141.2 | 141.2 | ||
Accumulated Depreciation | -22.3 | -20.9 | ||
Net Book Value | 118.9 | 120.3 | ||
Depreciation Rates | 1.00% | 1.00% | ||
Road property [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 6,294.70 | 5,955.70 | ||
Accumulated Depreciation | -1,381 | -1,299 | ||
Net Book Value | 4,913.70 | 4,656.70 | ||
Depreciation Rates | 2.80% | 2.70% | ||
Rail and other track material [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 1,707.60 | 1,617.80 | ||
Accumulated Depreciation | -361.1 | -341.1 | ||
Net Book Value | 1,346.50 | 1,276.70 | ||
Rail and other track material [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation Rates | 1.90% | 1.80% | ||
Rail and other track material [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation Rates | 3.20% | 3.10% | ||
Ties [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 1,484.70 | 1,425.10 | ||
Accumulated Depreciation | -312.6 | -303.7 | ||
Net Book Value | 1,172.10 | 1,121.40 | ||
Ties [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation Rates | 2.00% | 2.00% | ||
Ties [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation Rates | 4.20% | 4.30% | ||
Grading [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 839.6 | 829.6 | ||
Accumulated Depreciation | -137.9 | -129.7 | ||
Net Book Value | 701.7 | 699.9 | ||
Depreciation Rates | 1.00% | 1.10% | ||
Bridges and tunnels [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 669.5 | 606.4 | ||
Accumulated Depreciation | -123.8 | -116.5 | ||
Net Book Value | 545.7 | 489.9 | ||
Depreciation Rates | 1.20% | 1.20% | ||
Ballast [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 649.8 | 602.7 | ||
Accumulated Depreciation | -170 | -155.2 | ||
Net Book Value | 479.8 | 447.5 | ||
Ballast [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation Rates | 2.70% | 2.60% | ||
Ballast [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation Rates | 4.80% | 4.80% | ||
Other road property [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 943.5 | [1] | 874.1 | [1] |
Accumulated Depreciation | -275.6 | [1] | -252.8 | [1] |
Net Book Value | 667.9 | [1] | 621.3 | [1] |
Depreciation Rates | 3.10% | [1] | 2.90% | [1] |
Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 1,979.90 | 1,436.20 | ||
Accumulated Depreciation | -355.1 | -286.2 | ||
Net Book Value | 1,624.80 | 1,150 | ||
Depreciation Rates | 5.00% | 4.80% | ||
Locomotives [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 1,310.30 | 1,017.40 | ||
Accumulated Depreciation | -238.3 | -193.2 | ||
Net Book Value | 1,072 | 824.2 | ||
Depreciation Rates | 4.70% | 5.00% | ||
Freight cars [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 610.6 | 362.2 | ||
Accumulated Depreciation | -98.3 | -78.9 | ||
Net Book Value | 512.3 | 283.3 | ||
Depreciation Rates | 5.30% | 3.90% | ||
Other equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 59 | 56.6 | ||
Accumulated Depreciation | -18.5 | -14.1 | ||
Net Book Value | 40.5 | 42.5 | ||
Depreciation Rates | 8.20% | 7.40% | ||
Technology and other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 160.9 | 152.8 | ||
Accumulated Depreciation | -121.9 | -111.3 | ||
Net Book Value | 39 | 41.5 | ||
Depreciation Rates | 13.20% | 11.60% | ||
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost | 241.5 | 171.4 | ||
Accumulated Depreciation | 0 | 0 | ||
Net Book Value | $241.50 | $171.40 | ||
[1] | Other includes signals, buildings and other road assets. |
Other_Balance_Sheet_Captions_A
Other Balance Sheet Captions Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Other Balance Sheet Captions [Abstract] | |||
Accounts payable | $215 | $200.50 | |
Accrued wages and vacation | 75.1 | 72.7 | |
Derailments, personal injury and other claim provisions | 42.4 | 47.9 | |
Dividends payable | 31 | 23.8 | 0 |
Income and other taxes | 24.8 | 18.5 | |
Other | 35.6 | 35.2 | |
Accounts payable and accrued liabilities | $423.90 | $398.60 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value of company's debt | $1,865.80 | $2,188.90 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of company's debt | 1,884.10 | 2,082.90 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency forward contract agreements | $4.30 | $0 |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (Foreign Currency Forward Contracts [Member]) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2015 | Jan. 31, 2015 |
Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Offsetting Derivative Instrument [Member] | Offsetting Derivative Instrument [Member] | Offsetting Derivative Instrument [Member] | Offsetting Derivative Instrument [Member] | Offsetting Derivative Instrument [Member] | Offsetting Derivative Instrument [Member] | Offsetting Derivative Instrument [Member] | Offsetting Derivative Instrument [Member] | |
USD ($) | MXN | USD ($) | MXN | USD ($) | MXN | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | USD ($) | MXN | USD ($) | MXN | USD ($) | MXN | Subsequent Event [Member] | Subsequent Event [Member] | |
USD ($) | MXN | USD ($) | MXN | ||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Aggregate notional amount of derivative | $300 | 4,364.70 | $345 | 4,642.50 | $325 | 4,202.30 | $0 | $300 | 4,480.40 | $291.40 | 4,238.80 | $30 | 403.7 | $324.30 | 4,202.30 | $298.80 | 4,364.70 |
Derivative maturity date | 15-Jan-15 | 15-Jan-15 | 31-Dec-14 | 31-Dec-14 | 31-Dec-13 | 31-Dec-13 | 15-Jan-16 | 15-Jan-16 | 31-Dec-14 | 31-Dec-14 | 31-Dec-14 | 31-Dec-14 | 31-Dec-13 | 31-Dec-13 | 15-Jan-15 | 15-Jan-15 | |
Weighted average exchange rate of derivatives (in Ps per USD) | 14.55 | 13.46 | 12.93 | 14.93 | 14.57 | 13.46 | 12.96 | 14.61 |
Derivative_Instruments_Fair_Va
Derivative Instruments Fair Value of Derivative Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $4.30 | $0 |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, fair value | $4.30 | $0 |
Derivative_Instruments_Derivat
Derivative Instruments Derivative Instruments Affecting the Consolidated Statements of Income (Details) (Not Designated as Hedging Instrument [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | ($27.90) | ($0.70) | $0 |
Foreign Currency Forward Contracts [Member] | Foreign Exchange Gain (Loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income on Derivative | ($27.90) | ($0.70) | $0 |
Schedule_of_ShortTerm_Borrowin
Schedule of Short-Term Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-term Borrowings [Line Items] | ||
Short-term borrowings | $450.10 | $0 |
KCSR [Member] | Commercial Paper [Member] | ||
Short-term Borrowings [Line Items] | ||
Short-term borrowings | 150.1 | 0 |
KCSII [Member] | Other Short-Term Borrowings [Member] | ||
Short-term Borrowings [Line Items] | ||
Short-term borrowings | $300 | $0 |
ShortTerm_Borrowings_Narrative
Short-Term Borrowings (Narrative) (Details) (USD $) | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 15, 2014 | Oct. 22, 2014 | Jan. 22, 2015 | Dec. 31, 2014 |
KCSR [Member] | Commercial Paper [Member] | ||||
Short-term Borrowings [Line Items] | ||||
Amount of commercial paper outstanding | $150.10 | |||
Weighted-average interest rate of short-term borrowings | 0.72% | |||
KCSM [Member] | Commercial Paper [Member] | ||||
Short-term Borrowings [Line Items] | ||||
Amount of commercial paper outstanding | 0 | |||
KCSII [Member] | Loans Payable [Member] | KCSII Credit Agreement [Member] | ||||
Short-term Borrowings [Line Items] | ||||
Weighted-average interest rate of short-term borrowings | 1.49% | |||
Maximum aggregate principal amount available under credit agreement | 300 | |||
Proceeds from Issuance of Debt | 200 | 100 | ||
KCSII Credit agreement loans term to maturity | 90 days | |||
KCSII [Member] | Loans Payable [Member] | KCSII Credit Agreement [Member] | Subsequent Event [Member] | ||||
Short-term Borrowings [Line Items] | ||||
Outstanding principal amount of debt repaid | $100 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt Schedule of Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | $1,844 | |
Total | 1,865.80 | 2,188.90 |
Less: Debt due within one year | 24.8 | 332 |
Long-term debt | 1,841 | 1,856.90 |
KCSR [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0 | 0 |
KCSR [Member] | Loans Payable [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0 | 245.3 |
KCSR [Member] | Senior Notes [Member] | 4.30% Senior Notes, Due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 446 | 445.9 |
KCSR [Member] | Senior Notes [Member] | 3.85% Senior Notes, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 199.8 | 199.7 |
KCSR [Member] | Secured Debt [Member] | RRIF Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 50.4 | 52 |
KCSR [Member] | Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Capital lease obligations | 8.2 | 9.8 |
KCSR [Member] | Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0.2 | 0.4 |
Tex-Mex [Member] | Secured Debt [Member] | RRIF Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 37.8 | 39.4 |
KCSM [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0 | 0 |
KCSM [Member] | Senior Notes [Member] | 8.0% Senior Notes, Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0 | 62.3 |
KCSM [Member] | Senior Notes [Member] | 2.35% Senior Notes, Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 274.7 | 274.7 |
KCSM [Member] | Senior Notes [Member] | 3.0% Senior Notes, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 448.4 | 448.2 |
KCSM [Member] | Senior Notes [Member] | Floating Rate Senior Notes, Due 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 250 | 250 |
Variable interest rate | 0.93% | |
KCSM [Member] | Secured Debt [Member] | 5.737% Financing Agreement, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 39.2 | 43.8 |
KCSM [Member] | Secured Debt [Member] | 6.195% Financing Agreement, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 30.4 | 33.9 |
KCSM [Member] | Secured Debt [Member] | 9.310% Loan Agreements, Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 66.9 | 74.6 |
KCSM [Member] | Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Capital lease obligations | 13.6 | 7.4 |
KCSM [Member] | Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | 0 | 1.3 |
KCS [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0.2 | 0.2 |
KCS [Member] | Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt obligations | $0.20 | $0.20 |
LongTerm_Debt_KCSR_LongTerm_De
Long-Term Debt KCSR Long-Term Debt (Narrative) (Details) (KCSR [Member], USD $) | 0 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Feb. 14, 2014 | Feb. 07, 2014 | Apr. 29, 2013 | Oct. 29, 2013 | Feb. 21, 2012 | Jan. 30, 2014 | Dec. 31, 2013 |
locomotives | ||||||||
Commercial Paper [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper maximum borrowing capacity | $450 | |||||||
KCSR Credit Agreement Amendment [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 450 | |||||||
KCSR Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement expiration date | 15-Nov-17 | |||||||
KCSR Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from lines of credit | 175 | |||||||
Repayments of lines of credit | 175 | |||||||
Amount available under the Revolving Facility | 299.9 | 200 | ||||||
Outstanding borrowings under the Revolving Facility | 0 | 0 | ||||||
KCSR Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin KCSR would pay above the LIBOR | 1.50% | |||||||
KCSR Credit Agreement [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 25 | |||||||
KCSR Credit Agreement [Member] | Revolving Credit Facility [Member] | Swing Line Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 15 | |||||||
KCSR Credit Agreement [Member] | Loans Payable [Member] | Term Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | 300 | |||||||
Outstanding principal amount of debt repaid | 277.5 | |||||||
KCSR Credit Agreement [Member] | Loans Payable [Member] | Term Loan A-2 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | 275 | |||||||
Outstanding principal amount of debt repaid | 245.3 | |||||||
4.30% Senior Notes, Due May 15, 2043 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | 450 | |||||||
Debt instrument, stated interest rate | 4.30% | |||||||
Debt instrument, maturity date | 15-May-43 | |||||||
Debt instrument, discount | 4.1 | |||||||
Debt instrument, yield to maturity | 4.36% | |||||||
4.30% Senior Notes, Due May 15, 2043 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Date which Senior Notes are redeemable prior to, at KCSR's option, in whole or in part | 15-Nov-42 | |||||||
Redemption price expressed as percent of principal amount | 100.00% | |||||||
Additional basis spread on U.S. Treasury rate | 0.25% | |||||||
4.30% Senior Notes, Due May 15, 2043 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price expressed as percent of principal amount | 100.00% | |||||||
Date on or after which Senior Notes may be redeemed at KCSR's option, in whole or in part | 15-Nov-42 | |||||||
3.85% Senior Notes, Due November 15, 2023 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | 200 | |||||||
Debt instrument, stated interest rate | 3.85% | |||||||
Debt instrument, maturity date | 15-Nov-23 | |||||||
Debt instrument, discount | 0.3 | |||||||
Debt instrument, yield to maturity | 3.87% | |||||||
3.85% Senior Notes, Due November 15, 2023 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Date which Senior Notes are redeemable prior to, at KCSR's option, in whole or in part | 15-Aug-23 | |||||||
Redemption price expressed as percent of principal amount | 100.00% | |||||||
Additional basis spread on U.S. Treasury rate | 0.20% | |||||||
3.85% Senior Notes, Due November 15, 2023 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price expressed as percent of principal amount | 100.00% | |||||||
Date on or after which Senior Notes may be redeemed at KCSR's option, in whole or in part | 15-Aug-23 | |||||||
RRIF Loan Agreement [Member] | Secured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $54.60 | |||||||
Debt instrument, stated interest rate | 2.96% | |||||||
RRIF Loan term to maturity | 25 years | |||||||
Percentage of purchase price reimbursed | 80.00% | |||||||
Number of new locomotives acquired | 30 |
LongTerm_Debt_TexMex_LongTerm_
Long-Term Debt Tex-Mex Long-Term Debt (Narrative) (Details) (Tex Mex [Member], Secured Debt [Member], RRIF Loan Agreement [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jun. 28, 2005 |
Tex Mex [Member] | Secured Debt [Member] | RRIF Loan Agreement [Member] | |
Debt Instrument [Line Items] | |
Principal amount of debt | $50 |
Debt instrument, stated interest rate | 4.29% |
Debt instrument, maturity date | 13-Jul-30 |
LongTerm_Debt_KCSM_LongTerm_De
Long-Term Debt KCSM Long-Term Debt (Narrative) (Details) (KCSM [Member], USD $) | 0 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Feb. 03, 2014 | 8-May-13 | Jan. 22, 2010 | Oct. 29, 2013 | 3-May-13 | Feb. 26, 2008 | Sep. 24, 2008 | Sep. 01, 2011 | Jan. 30, 2014 | Dec. 31, 2013 |
payments | payments | agreements | |||||||||
locomotives | locomotives | trusts | |||||||||
locomotives | |||||||||||
payments | |||||||||||
Commercial Paper [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commercial paper maximum borrowing capacity | $200 | ||||||||||
KCSM Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility maximum borrowing capacity | 200 | ||||||||||
Credit agreement expiration date | 15-Nov-17 | ||||||||||
Amount outstanding under the KCSM Revolving Facility | 0 | 0 | |||||||||
KCSM Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Margin KCSM would pay above the LIBOR | 1.75% | ||||||||||
KCSM Credit Agreement [Member] | Revolving Credit Facility [Member] | Letter of Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility maximum borrowing capacity | 15 | ||||||||||
KCSM Credit Agreement [Member] | Revolving Credit Facility [Member] | Swing Line Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility maximum borrowing capacity | 15 | ||||||||||
KCSM 8.0% Senior Notes [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 300 | ||||||||||
Debt instrument, stated interest rate | 8.00% | ||||||||||
Debt instrument, maturity date | 1-Feb-18 | ||||||||||
Gross amount of debt purchased and redeemed | 62.8 | 237.2 | |||||||||
Redemption price expressed as percent of principal amount | 104.00% | ||||||||||
6 5/8% Senior Notes [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, stated interest rate | 6.63% | ||||||||||
Debt instrument, maturity date | 15-Dec-20 | ||||||||||
Gross amount of debt purchased and redeemed | 181 | ||||||||||
6 1/8% Senior Notes [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, stated interest rate | 6.13% | ||||||||||
Debt instrument, maturity date | 15-Jun-21 | ||||||||||
Gross amount of debt purchased and redeemed | 149.7 | 29.4 | |||||||||
2.35% Senior Notes, Due May 15, 2020 [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 275 | ||||||||||
Debt instrument, stated interest rate | 2.35% | ||||||||||
Debt instrument, maturity date | 15-May-20 | ||||||||||
Debt instrument, discount | 0.3 | ||||||||||
Debt instrument, yield to maturity | 2.37% | ||||||||||
2.35% Senior Notes, Due May 15, 2020 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price expressed as percent of principal amount | 100.00% | ||||||||||
Date which Senior Notes are redeemable prior to, at KCSM's option, in whole or in part | 15-Apr-20 | ||||||||||
Additional basis spread on U.S. Treasury rate | 0.20% | ||||||||||
2.35% Senior Notes, Due May 15, 2020 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price expressed as percent of principal amount | 100.00% | ||||||||||
Date on or after which Senior Notes may be redeemed | 15-Apr-20 | ||||||||||
3.0% Senior Notes, Due May 15, 2023 [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 450 | ||||||||||
Debt instrument, stated interest rate | 3.00% | ||||||||||
Debt instrument, maturity date | 15-May-23 | ||||||||||
Debt instrument, discount | 1.9 | ||||||||||
Debt instrument, yield to maturity | 3.05% | ||||||||||
3.0% Senior Notes, Due May 15, 2023 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price expressed as percent of principal amount | 100.00% | ||||||||||
Date which Senior Notes are redeemable prior to, at KCSM's option, in whole or in part | 15-Feb-23 | ||||||||||
Additional basis spread on U.S. Treasury rate | 0.20% | ||||||||||
3.0% Senior Notes, Due May 15, 2023 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price expressed as percent of principal amount | 100.00% | ||||||||||
Date on or after which Senior Notes may be redeemed | 15-Feb-23 | ||||||||||
Floating Rate Senior Notes, Due October 28, 2016 [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 250 | ||||||||||
Debt instrument, maturity date | 28-Oct-16 | ||||||||||
Floating Rate Senior Notes, Due October 28, 2016 [Member] | Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price expressed as percent of principal amount | 100.00% | ||||||||||
Floating Rate Senior Notes, Due October 28, 2016 [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Margin KCSM would pay above the LIBOR | 0.70% | ||||||||||
5.737% Financing Agreement, Due February 28, 2023 [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 72.8 | ||||||||||
Debt instrument, stated interest rate | 5.74% | ||||||||||
Debt instrument, maturity date | 28-Feb-23 | ||||||||||
Percentage of purchase price financed | 85.00% | ||||||||||
Number of locomotives purchased | 40 | ||||||||||
Debt instrument, number of principal payments | 30 | ||||||||||
Debt instrument, amount of periodic principal payments | 2.4 | ||||||||||
6.195% Financing Agreement, Due September 29, 2023 [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | 52.2 | ||||||||||
Debt instrument, stated interest rate | 6.20% | ||||||||||
Debt instrument, maturity date | 29-Sep-23 | ||||||||||
Percentage of purchase price financed | 80.00% | ||||||||||
Number of locomotives purchased | 29 | ||||||||||
Debt instrument, number of principal payments | 60 | ||||||||||
9.310% Loan Agreements, Due December 15, 2020 [Member] | Secured Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of debt | $18.20 | ||||||||||
Debt instrument, stated interest rate | 9.31% | ||||||||||
Debt instrument, maturity date | 15-Dec-20 | ||||||||||
Percentage of purchase price financed | 88.00% | ||||||||||
Number of locomotives purchased | 75 | ||||||||||
Debt instrument, number of principal payments | 38 | ||||||||||
Debt instrument, number of loan agreements | 5 | ||||||||||
Debt instrument, number of irrevocable trusts | 5 |
LongTerm_Debt_Leases_and_Debt_
Long-Term Debt Leases and Debt Maturities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||
Rental expenses under operating leases | $76.40 | $106.70 | $108.80 |
Long-Term Debt | |||
Long-Term Debt, Payments Due in 2015 | 20 | ||
Long-Term Debt, Payments Due in 2016 | 270.8 | ||
Long-Term Debt, Payments Due in 2017 | 22 | ||
Long-Term Debt, Payments Due in 2018 | 35.2 | ||
Long-Term Debt, Payments Due in 2019 | 15.5 | ||
Long-Term Debt, Payments Due Thereafter | 1,480.50 | ||
Total Long-Term Debt | 1,844 | ||
Capital Leases, Minimum Lease Payments | |||
Capital Leases, Minimum Lease Payments Due in 2015 | 6.8 | ||
Capital Leases, Minimum Lease Payments Due in 2016 | 6.3 | ||
Capital Leases, Minimum Lease Payments Due in 2017 | 4 | ||
Capital Leases, Minimum Lease Payments Due in 2018 | 3.9 | ||
Capital Leases, Minimum Lease Payments Due in 2019 | 2.7 | ||
Capital Leases, Minimum Lease Payments Due Thereafter | 6.7 | ||
Capital Leases, Minimum Lease Payments Total Due | 30.4 | ||
Capital Leases, Minimum Interest Payments | |||
Capital Leases, Minimum Interest Payments Due in 2015 | 2 | ||
Capital Leases, Minimum Interest Payments Due in 2016 | 1.7 | ||
Capital Leases, Minimum Interest Payments Due in 2017 | 1.3 | ||
Capital Leases, Minimum Interest Payments Due in 2018 | 1.1 | ||
Capital Leases, Minimum Interest Payments Due in 2019 | 0.8 | ||
Capital Leases, Minimum Interest Payments Due Thereafter | 1.7 | ||
Capital Leases, Minimum Interest Payments Total Due | 8.6 | ||
Capital Leases, Net Present Value | |||
Capital Leases, Net Present Value Due in 2015 | 4.8 | ||
Capital Leases, Net Present Value Due in 2016 | 4.6 | ||
Capital Leases, Net Present Value Due in 2017 | 2.7 | ||
Capital Leases, Net Present Value Due in 2018 | 2.8 | ||
Capital Leases, Net Present Value Due in 2019 | 1.9 | ||
Capital Leases, Net Present Value Due Thereafter | 5 | ||
Capital Leases, Net Present Value Total Due | 21.8 | ||
Total Debt | |||
Total Debt Due in 2015 | 24.8 | ||
Total Debt Due in 2016 | 275.4 | ||
Total Debt Due in 2017 | 24.7 | ||
Total Debt Due in 2018 | 38 | ||
Total Debt Due in 2019 | 17.4 | ||
Total Debt Due Thereafter | 1,485.50 | ||
Total | 1,865.80 | 2,188.90 | |
Operating Leases, Minimum Lease Payments | |||
Operating Leases, Minimum Lease Payments Due in 2015 | 74.5 | ||
Operating Leases, Minimum Lease Payments Due in 2016 | 67.6 | ||
Operating Leases, Minimum Lease Payments Due in 2017 | 57.3 | ||
Operating Leases, Minimum Lease Payments Due in 2018 | 37.3 | ||
Operating Leases, Minimum Lease Payments Due in 2019 | 30.5 | ||
Operating Leases, Minimum Lease Payments Due Thereafter | 98.5 | ||
Operating Leases, Minimum Lease Payments Total Due | 365.7 | ||
Total Debt and Operating Leases | |||
Total Debt and Operating Leases, Payments Due in 2015 | 99.3 | ||
Total Debt and Operating Leases, Payments Due in 2016 | 343 | ||
Total Debt and Operating Leases, Payments Due in 2017 | 82 | ||
Total Debt and Operating Leases, Payments Due in 2018 | 75.3 | ||
Total Debt and Operating Leases, Payments Due in 2019 | 47.9 | ||
Total Debt and Operating Leases, Payments Due Thereafter | 1,584 | ||
Total Debt and Operating Leases, Payments Due Total | $2,231.50 |
Income_Taxes_Schedule_of_Incom
Income Taxes Schedule of Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | ($2.50) | $6 | $2.80 |
State and local | 1.2 | 1.9 | 0.7 |
Foreign | 70 | 79.2 | 36.2 |
Total current | 68.7 | 87.1 | 39.7 |
Deferred: | |||
Federal | 112.6 | 99 | 99.2 |
State and local | 16.9 | 11.9 | -7.4 |
Foreign | 10.6 | 0.3 | 105.5 |
Total deferred | 140.1 | 111.2 | 197.3 |
Income tax expense | $208.80 | $198.30 | $237 |
Income_Taxes_Schedule_of_Incom1
Income Taxes Schedule of Income Before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. | $341.80 | $319.20 | $282.80 |
Foreign | 371.3 | 232.4 | 333.6 |
Income before income taxes | $713.10 | $551.60 | $616.40 |
Income_Taxes_Schedule_of_Defer
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ||
Loss carryovers | $52.20 | $52.60 |
Reserves not currently deductible for tax | 94.5 | 91.2 |
Other | 69.3 | 64.6 |
Gross deferred tax assets before valuation allowance | 216 | 208.4 |
Valuation allowance | -0.9 | -2.7 |
Net deferred tax assets | 215.1 | 205.7 |
Liabilities: | ||
Property | -1,194.70 | -1,044.60 |
Investments | -68.2 | -66.3 |
Other | -8.4 | -7.8 |
Gross deferred tax liabilities | -1,271.30 | -1,118.70 |
Net deferred tax liability | ($1,056.20) | ($913) |
Income_Taxes_Schedule_of_Effec
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Tax Disclosure [Abstract] | ||||||
Income tax expense using the statutory rate in effect | $249.60 | $193.10 | $215.70 | |||
Tax effect of: | ||||||
Difference between U.S. and foreign tax rate | -23 | -15.4 | -18.4 | |||
Foreign exchange and inflation adjustments | -25.6 | [1] | 4.7 | [1] | 42.3 | [1] |
State and local income tax provision, net | 11.7 | 8.9 | 8.4 | |||
Change in valuation allowances | -1.8 | -0.9 | -11.2 | |||
Other, net | -2.1 | 7.9 | 0.2 | |||
Income tax expense | $208.80 | $198.30 | $237 | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |||
Tax rate effect of: | ||||||
Difference between U.S. and foreign tax rate | -3.20% | -2.80% | -3.00% | |||
Foreign exchange and inflation adjustments | -3.60% | [1] | 0.80% | [1] | 6.90% | [1] |
State and local income tax provision, net | 1.60% | 1.60% | 1.30% | |||
Change in valuation allowances | -0.30% | -0.20% | -1.80% | |||
Other, net | -0.20% | 1.50% | 0.00% | |||
Effective income tax rate | 29.30% | 35.90% | 38.40% | |||
[1] | Mexican income taxes are paid in Mexican pesos, and as a result, the effective income tax rate reflects fluctuations in the value of the Mexican peso against the U.S. dollar. Most significantly, any gain or loss from the revaluation of net U.S. dollar-denominated monetary liabilities (primarily debt) into Mexican pesos is included in Mexican taxable income under Mexican tax law. As a result, a strengthening of the Mexican peso against the U.S. dollar for the reporting period will generally increase the Mexican cash tax obligation and the effective income tax rate, and a weakening of the Mexican peso against the U.S. dollar for the reporting period will generally decrease the Mexican cash tax obligation and the effective tax rate. To hedge its exposure to this risk, during 2014 and 2013 the Company entered into foreign currency forward contracts, which are measured at fair value each period and any change in fair value is recognized in foreign exchange gain (loss) within the consolidated statements of income. |
Income_Taxes_Uncertain_Tax_Pos
Income Taxes Uncertain Tax Positions (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits [Rollforward] | ||
Balance at January 1, | $3.50 | $3.60 |
Additions based on tax positions related to the current year | 0 | 0 |
Additions for tax positions of prior years | 0 | 0 |
Reductions for tax positions of prior years | -1.8 | -0.1 |
Balance at December 31, | $1.70 | $3.50 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 11, 2013 |
Income Tax Disclosure [Line Items] | ||||
Amount the Company's book basis exceeded the tax basis of its foreign investments | $1,593.90 | |||
Gross federal income taxes the Company would incur if the earnings were to be remitted in a taxable transaction | 557.9 | |||
Statutory income tax rate | 35.00% | 35.00% | 35.00% | |
NAFTA [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Value added tax receivable, noncurrent | 13.4 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforward, amount | 472.5 | |||
State and Local Jurisdiction [Member] | Maximum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforward, period | 20 years | |||
State and Local Jurisdiction [Member] | Minimum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforward, period | 5 years | |||
Mexican Tax Authority [Member] | Foreign Tax Authority [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforward, amount | 83.5 | |||
Tax credit carryforward, amount | 5.7 | |||
Mexican Tax Authority [Member] | Foreign Tax Authority [Member] | Eliminated 2014 Tax Rate Reduction [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory income tax rate | 29.00% | |||
Mexican Tax Authority [Member] | Foreign Tax Authority [Member] | Eliminated 2015 Tax Rate Reduction [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory income tax rate | 28.00% | |||
Mexican Tax Authority [Member] | Foreign Tax Authority [Member] | Years 2013 And Forward [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory income tax rate | 30.00% | |||
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforward, amount | 32.8 | |||
Federal operating loss carryforward not recognized in the financial statements | 8.9 | |||
Tax credit carryforward, amount | 37.3 | |||
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Track Maintenance Credits [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carryforward, amount | $31.70 | |||
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | Maximum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforward, period | 20 years |
Stockholders_Equity_Capital_St
Stockholders' Equity Capital Stock Shares Authorized, Issued and Outstanding (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares Issued | 123,352,185 | 123,352,185 |
Common Stock, Shares Outstanding | 110,392,330 | 110,229,229 |
$25 Par Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 840,000 | 840,000 |
Preferred Stock, Shares Issued | 649,736 | 649,736 |
Preferred Stock, Shares Outstanding | 242,170 | 242,170 |
$1 Par Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Stockholders_Equity_Parentheti
Stockholders' Equity (Parenthetical) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | |||
Common Stock, Par Value | $0.01 | $0.01 | |
$25 Par Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Par Value | $25 | $25 | $25 |
Preferred Stock, Dividend Rate | 4.00% | 4.00% | |
$1 Par Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Par Value | $1 | $1 |
Stockholders_Equity_Treasury_S
Stockholders' Equity Treasury Stock (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity, Class of Treasury Stock [Line Items] | |||
Balance at beginning of year | 13,122,956 | 13,220,832 | 13,441,328 |
Shares issued to fund stock option exercises | -46,100 | -54,209 | -141,728 |
Employee stock purchase plan shares issued | -33,402 | -42,391 | -44,319 |
Nonvested shares issued | -121,865 | -5,723 | -56,136 |
Nonvested shares forfeited | 38,266 | 4,447 | 21,687 |
Balance at end of year | 12,959,855 | 13,122,956 | 13,220,832 |
Stockholders_Equity_Accumulate
Stockholders' Equity Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | ($2) | ($2.40) | |
Other comprehensive loss before reclassifications | -1.1 | -0.2 | |
Amounts reclassified from accumulated other comprehensive loss | -0.1 | 0.6 | |
Other comprehensive income (loss) | -1.2 | 0.4 | -0.2 |
Balance | -3.2 | -2 | -2.4 |
Postemployment Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | 0.3 | 0.4 | |
Other comprehensive loss before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | -0.2 | -0.1 | |
Other comprehensive income (loss) | -0.2 | -0.1 | |
Balance | 0.1 | 0.3 | |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | -2.2 | -2.2 | |
Other comprehensive loss before reclassifications | -1.1 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Other comprehensive income (loss) | -1.1 | 0 | |
Balance | -3.3 | -2.2 | |
Unrealized Loss on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | -0.1 | -0.6 | |
Other comprehensive loss before reclassifications | 0 | -0.2 | |
Amounts reclassified from accumulated other comprehensive loss | 0.1 | 0.7 | |
Other comprehensive income (loss) | 0.1 | 0.5 | |
Balance | $0 | ($0.10) |
Stockholders_Equity_Significan
Stockholders' Equity Significant Reclassifications out of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Interest expense | ($72.80) | ($80.60) | ($100.40) | |||||||||
Debt retirement costs | -111.4 | -6.6 | -119.2 | -20.1 | ||||||||
Amortization of prior service credit | -474.5 | -441.6 | -430.5 | |||||||||
Income before income taxes | 713.1 | 551.6 | 616.4 | |||||||||
Tax effect | -208.8 | -198.3 | -237 | |||||||||
Net income | 141.7 | 138.4 | 130.2 | 94 | 114.4 | 119 | 15.7 | [1] | 104.2 | 504.3 | 353.3 | 379.4 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net income | 0.1 | -0.6 | -0.3 | |||||||||
Unrealized Losses on Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Interest expense | -0.1 | -0.6 | -0.7 | |||||||||
Debt retirement costs | 0 | -0.4 | 0 | |||||||||
Income before income taxes | -0.1 | -1 | -0.7 | |||||||||
Tax effect | 0 | 0.3 | 0.3 | |||||||||
Net income | -0.1 | -0.7 | -0.4 | |||||||||
Postemployment Benefits [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amortization of prior service credit | 0.3 | 0.2 | 0.2 | |||||||||
Income before income taxes | 0.3 | 0.2 | 0.2 | |||||||||
Tax effect | -0.1 | -0.1 | -0.1 | |||||||||
Net income | $0.20 | $0.10 | $0.10 | |||||||||
[1] | During the second quarter of 2013, the Company recognized pre-tax debt retirement costs of $111.4 million, related to debt restructuring activities that occurred during the period. |
Stockholders_Equity_Cash_Divid
Stockholders' Equity Cash Dividends on Common Stock (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | |||
Cash dividends declared per common share | $1.12 | $0.86 | $0.78 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (Stock Option and Performance Award Plan 2008 [Member]) | Dec. 31, 2014 |
Stock Option and Performance Award Plan 2008 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 2,300,000 |
ShareBased_Compensation_Stock_
Share-Based Compensation, Stock Options (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised, number of shares | -46,100 | -54,209 | -141,728 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Contractual term (years) | 10 years | ||
Expected dividend yield | 1.19% | 0.88% | 0.00% |
Expected volatility | 45.57% | 46.12% | 46.59% |
Risk-free interest rate | 1.96% | 1.11% | 0.46% |
Expected term (years) | 6 years | 6 years | 6 years |
Weighted-average grant date fair value of stock options granted | 38.31 | 40.05 | 29.45 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, number of shares, beginning of period | 362,759 | ||
Options, weighted-average exercise price per share, beginning of period | 54.94 | ||
Granted, number of shares | 53,021 | ||
Granted, weighted-average exercise price | 94.23 | ||
Exercised, number of shares | -46,100 | ||
Exercised, weighted-average exercise price per share | 43.93 | ||
Forfeited or expired, number of shares | -13,582 | ||
Forfeited or expired, weighted-average exercise price per share | 91.32 | ||
Options outstanding, number of shares, end of period | 356,098 | 362,759 | |
Options, weighted-average exercise price per share, end of period | 60.83 | 54.94 | |
Options outstanding, weighted-average remaining contractual term | 6 years 6 months 29 days | ||
Options outstanding, aggregate intrinsic value | 21.8 | ||
Vested and expected to vest, number of shares | 353,769 | ||
Vested and expected to vest, weighted-average exercise price per share | 60.64 | ||
Vested and expected to vest, weighted-average remaining contractual term | 6 years 6 months 25 days | ||
Vested and expected to vest, aggregate intrinsic value | 21.7 | ||
Exercisable, number of shares | 256,888 | ||
Exercisable, weighted-average exercise price per share | 49.62 | ||
Exercisable, weighted-average remaining contractual term | 5 years 10 months 17 days | ||
Exercisable, aggregate intrinsic value | 18.6 | ||
Compensation expense | 1.7 | 2.4 | 1.8 |
Income tax benefit recognized in the income statement | 0.7 | 0.9 | 0.7 |
Aggregate grant-date fair value of stock options vested | 2.3 | 1.8 | 1.3 |
Intrinsic value of stock options exercised | 3.3 | 5 | 12.1 |
Cash received from option exercises | 2 | 1.5 | 1.9 |
Tax benefit realized from options exercised during the annual period | 1.3 | 1.9 | 4.6 |
Unrecognized compensation cost relating to nonvested stock options | 1 | ||
Unrecognized compensation cost weighted-average period of recognition | 12 months | ||
Shares available for future grants | 1,059,927 |
ShareBased_Compensation_Nonves
Share-Based Compensation, Nonvested Stock (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Forfeited, number of shares | -38,266 | -4,447 | -21,687 |
Nonvested Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested stock, number of shares, beginning of period | 202,060 | ||
Nonvested stock, weighted-average grant date fair value, beginning of period | 63 | ||
Granted, number of shares | 75,541 | ||
Granted, weighted-average grant date fair value | 105.04 | 103.38 | 70.98 |
Vested, number of shares | -82,642 | ||
Vested, weighted-average grant date fair value | 54.53 | ||
Forfeited, number of shares | -38,266 | ||
Forfeited, weighted-average grant date fair value | 66.45 | ||
Nonvested stock, number of shares, end of period | 156,693 | 202,060 | |
Nonvested stock, weighted-average grant date fair value, end of period | 86.89 | 63 | |
Nonvested stock, aggregate intrinsic value | 19.1 | ||
Shares vested, fair value | 8.5 | 12.2 | 7.8 |
Compensation expense | 4 | 5.6 | 4.4 |
Income tax benefit recognized in the income statement | 1.5 | 2.1 | 1.6 |
Unrecognized compensation cost relating to nonvested stock | 7.2 | ||
Unrecognized compensation cost weighted-average period of recognition | 1 year 10 months 24 days | ||
Nonvested Stock [Member] | Minimum [Member] | Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Nonvested Stock [Member] | Maximum [Member] | Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years |
ShareBased_Compensation_Perfor
Share-Based Compensation, Performance Based Awards (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Forfeited, number of shares | -38,266 | -4,447 | -21,687 | ||
Performance Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonvested stock, number of shares, beginning of period | 178,886 | [1] | |||
Nonvested stock, weighted-average grant date fair value, beginning of period | 69.19 | ||||
Granted, number of shares | 43,110 | [1] | |||
Granted, weighted-average grant date fair value | 94.23 | 82.34 | 62.81 | ||
Vested, number of shares | -72,900 | [1] | |||
Vested, weighted-average grant date fair value | 52.66 | ||||
Forfeited, number of shares | -17,031 | [1] | |||
Forfeited, weighted-average grant date fair value | 86.59 | ||||
Nonvested stock, number of shares, end of period | 132,065 | [1] | 178,886 | [1] | |
Nonvested stock, weighted-average grant date fair value, end of period | 84.24 | 69.19 | |||
Compensation expense | 3.7 | 5.1 | 4 | ||
Income tax benefit recognized in the income statement | 1.3 | 1.9 | 1.5 | ||
Unrecognized compensation cost relating to nonvested stock | 4 | ||||
Unrecognized compensation cost weighted-average period of recognition | 10 months 24 days | ||||
Shares vested, fair value | 6.8 | ||||
Performance Based Awards [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based award, earned percentage | 0.00% | ||||
Performance Based Awards [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance based award, earned percentage | 200.00% | ||||
2014 Awards [Member] | Performance Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Maximum number of shares | 74,298 | ||||
2013 Awards [Member] | Performance Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Maximum number of shares | 52,838 | ||||
2012 Awards [Member] | Performance Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Earned shares | 45,000 | ||||
[1] | * For the 2014 Awards and the 2013 Awards, participants in the aggregate can earn up to a maximum of 74,298 and 52,838 shares, respectively. For the 2012 Awards, the performance shares earned were 45,000. |
ShareBased_Compensation_Employ
Share-Based Compensation, Employee Stock Purchase Plan (Details) (USD $) | 12 Months Ended | 6 Months Ended | 0 Months Ended | |||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jan. 01, 2015 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercised, shares issued | 33,402 | 42,391 | 44,319 | |||||||||||||
Employee Stock [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares authorized | 4,000,000 | 4,000,000 | ||||||||||||||
Maximum employee contribution rate | 5.00% | 5.00% | ||||||||||||||
Employee stock purchase plan, purchase price | 90.00% | |||||||||||||||
Expected dividend yield | 0.99% | 0.90% | 0.59% | |||||||||||||
Expected volatility | 19.03% | 18.30% | 28.97% | |||||||||||||
Risk-free interest rate | 0.10% | 0.13% | 0.14% | |||||||||||||
Expected term (years) | 6 months | 6 months | 6 months | |||||||||||||
Weighted-average grant date fair value | 17.13 | 14.48 | 12.4 | |||||||||||||
Compensation expense | 0.6 | 0.5 | 0.5 | |||||||||||||
Shares available for future grants | 3,800,000 | 3,800,000 | ||||||||||||||
July 2014 offering ESPP [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercised, purchase price | $96.48 | |||||||||||||||
Exercised, shares issued | 17,639 | |||||||||||||||
Proceeds received from employees | 1.7 | [1] | ||||||||||||||
January 2014 offering ESPP [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercised, purchase price | $96.76 | |||||||||||||||
Exercised, shares issued | 17,026 | |||||||||||||||
Proceeds received from employees | 1.6 | [1] | ||||||||||||||
July 2013 offering ESPP [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercised, purchase price | $97.58 | |||||||||||||||
Exercised, shares issued | 16,376 | |||||||||||||||
Proceeds received from employees | 1.6 | [1] | ||||||||||||||
January 2013 offering ESPP [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercised, purchase price | $77.53 | |||||||||||||||
Exercised, shares issued | 19,292 | |||||||||||||||
Proceeds received from employees | 1.5 | [1] | ||||||||||||||
July 2012 offering ESPP [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercised, purchase price | $61.73 | |||||||||||||||
Exercised, shares issued | 23,099 | |||||||||||||||
Proceeds received from employees | 1.4 | [1] | ||||||||||||||
January 2012 offering ESPP [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Exercised, purchase price | $61.84 | |||||||||||||||
Exercised, shares issued | 21,559 | |||||||||||||||
Proceeds received from employees | $1.30 | [1] | ||||||||||||||
Subsequent Event [Member] | Employee Stock [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Maximum employee contribution rate | 10.00% | |||||||||||||||
Employee stock purchase plan, purchase price | 85.00% | |||||||||||||||
[1] | Represents amounts received from employees through payroll deductions for share purchases under applicable offering. |
Postemployment_Benefits_Narrat
Postemployment Benefits (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Profit Sharing Plan and 401 K [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Company Contribution Rate | 5.00% | ||
Defined Contribution Plan, Cost Recognized | $2.70 | $2.50 | $2.30 |
Multiemployer Plans, Postretirement Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plan, Period Contributions | $3.70 | $3.90 | $4.30 |
Postemployment_Benefits_Compon
Postemployment Benefits Components of Net Benefits and Costs (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 | |||
years | |||||||
Health and Welfare [Member] | |||||||
Postemployment and Other Postretirement Benefit Plans [Line Items] | |||||||
Service cost | $0.10 | $0.10 | $0.10 | ||||
Interest cost | 0.2 | 0.2 | 0.2 | ||||
Actuarial (gain) loss | 0.9 | [1] | -0.9 | [1] | 0.1 | [1] | |
Foreign currency (gain) loss | 0 | 0 | 0 | ||||
Prior service credit | -0.2 | [2] | -0.2 | [2] | -0.2 | [2] | |
Net periodic cost (benefit) recognized | 1 | -0.8 | 0.2 | ||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 2.3 | ||||||
Defined Benefit Plan, Amortization of Prior Service Amortization Period | 9.5 | ||||||
Postemployment Benefits [Member] | |||||||
Postemployment and Other Postretirement Benefit Plans [Line Items] | |||||||
Service cost | 0.8 | 0.9 | 0.9 | ||||
Interest cost | 1 | 0.9 | 0.8 | ||||
Actuarial (gain) loss | 3.8 | [1] | -1 | [1] | 3.1 | [1] | |
Foreign currency (gain) loss | -1.5 | -0.1 | 0.6 | ||||
Prior service credit | 0 | 0 | 0 | ||||
Net periodic cost (benefit) recognized | $4.10 | $0.70 | $5.40 | ||||
[1] | Net benefit costs above do not include a component for the amortization of actuarial gains or losses as the Company’s policy is to recognize such gains and losses immediately. | ||||||
[2] | During 2005, the Company revised its medical plan to exclude prescription drug coverage available under Medicare part D. This negative plan amendment generated an unrecognized prior service benefit of $2.3 million which is being amortized over the estimated remaining life of the affected participants of 9.5 years. |
Postemployment_Benefits_Change
Postemployment Benefits Change in Benefit Obligation (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Health and Welfare [Member] | ||||||
Benefit Plan, Change In Benefit Obligation [Roll Forward] | ||||||
Benefit obligation at beginning of year | $5.50 | $6.50 | ||||
Service cost | 0.1 | 0.1 | 0.1 | |||
Interest cost | 0.2 | 0.2 | 0.2 | |||
Actuarial (gain) loss | 0.9 | [1] | -0.9 | [1] | 0.1 | [1] |
Foreign currency (gain) loss | 0 | 0 | 0 | |||
Benefits paid, net of retiree contributions | -0.4 | -0.4 | ||||
Benefit obligation at end of year | 6.3 | 5.5 | 6.5 | |||
Funded status | -6.3 | -5.5 | ||||
Postemployment Benefits [Member] | ||||||
Benefit Plan, Change In Benefit Obligation [Roll Forward] | ||||||
Benefit obligation at beginning of year | 12.8 | 13.2 | ||||
Service cost | 0.8 | 0.9 | 0.9 | |||
Interest cost | 1 | 0.9 | 0.8 | |||
Actuarial (gain) loss | 3.8 | [1] | -1 | [1] | 3.1 | [1] |
Foreign currency (gain) loss | -1.5 | -0.1 | 0.6 | |||
Benefits paid, net of retiree contributions | -0.8 | -1.1 | ||||
Benefit obligation at end of year | 16.1 | 12.8 | 13.2 | |||
Funded status | ($16.10) | ($12.80) | ||||
[1] | Net benefit costs above do not include a component for the amortization of actuarial gains or losses as the Company’s policy is to recognize such gains and losses immediately. |
Postemployment_Benefits_Weight
Postemployment Benefits Weighted Average Assumptions Used for Benefit Obligations (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Health and Welfare [Member] | ||
Postemployment and Other Postretirement Benefit Plans [Line Items] | ||
Discount rate | 3.75% | 4.50% |
Postemployment Benefits [Member] | ||
Postemployment and Other Postretirement Benefit Plans [Line Items] | ||
Discount rate | 8.00% | 8.25% |
Rate of compensation increase | 4.50% | 4.50% |
Postemployment_Benefits_Weight1
Postemployment Benefits Weighted Average Assumptions Used for Benefit Costs (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Health and Welfare [Member] | ||
Postemployment and Other Postretirement Benefit Plans [Line Items] | ||
Discount rate | 4.50% | 3.50% |
Postemployment Benefits [Member] | ||
Postemployment and Other Postretirement Benefit Plans [Line Items] | ||
Discount rate | 8.25% | 6.75% |
Rate of compensation increase | 4.50% | 4.50% |
Postemployment_Benefits_Assume
Postemployment Benefits Assumed Health Care Cost Trends (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Health care trend rate for next year | 6.50% | 6.50% | 8.00% |
Ultimate trend rate | 5.00% | 5.00% | 5.00% |
Year that rate reaches ultimate rate | 2021 | 2023 | 2029 |
Postemployment_Benefits_Expect
Postemployment Benefits Expected Benefit Payments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Health and Welfare [Member] | |
Postemployment and Other Postretirement Benefit Plans [Line Items] | |
2015 | $0.50 |
2016 | 0.5 |
2017 | 0.5 |
2018 | 0.4 |
2019 | 0.3 |
2020-2024 | 1.7 |
Postemployment Benefits [Member] | |
Postemployment and Other Postretirement Benefit Plans [Line Items] | |
2015 | 1 |
2016 | 1 |
2017 | 1.1 |
2018 | 1.3 |
2019 | 1.4 |
2020-2024 | $8.90 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Guarantee [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of credit outstanding, amount | $5.40 | ||
Percent guarantee of unconsolidated affiliate debt | 50.00% | ||
KCSM [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of gross revenue payable under railroad Concession to Mexican government | 1.25% | ||
KCSM [Member] | Materials and Other Expense [Member] | |||
Loss Contingencies [Line Items] | |||
Concession duty expense | $15.80 | $14.30 | $9.40 |
Panama Canal Railway Company [Member] | Financial Guarantee [Member] | 7.0% Senior Secured Notes due November 1, 2026 [Member] | |||
Loss Contingencies [Line Items] | |||
Debt instrument, stated interest rate | 7.00% | ||
Debt instrument, maturity date | 1-Nov-26 |
Commitments_and_Contingencies_2
Commitments and Contingencies Personal Injury Liability Activity (Details) (Personal Injury [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Personal Injury [Member] | ||
Personal Injury Liability Activity [Roll Forward] | ||
Balance at beginning of year | $31.20 | $34.40 |
Accruals | 8.8 | 8.8 |
Change in estimate | -4.2 | 1.3 |
Payments | -6.5 | -13.3 |
Balance at end of year | $29.30 | $31.20 |
Elimination_of_Deferred_Statut1
Elimination of Deferred Statutory Profit Sharing Liability, Net (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Restructuring and Related Activities [Line Items] | ||||
Net reduction to operating expense as a result of the organizational restructuring | $0 | $0 | $43 | |
Elimination of deferred Mexican statutory profit sharing liability | 0 | 0 | 47.8 | |
KCSM [Member] | Organizational Restructuring [Member] | ||||
Restructuring and Related Activities [Line Items] | ||||
Net reduction to operating expense as a result of the organizational restructuring | 43 | |||
Elimination of deferred Mexican statutory profit sharing liability | 47.8 | |||
Transaction costs of organizational restructuring | $4.80 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Quarterly Financial Data [Abstract] | ||||||||||||||
Revenues | $642.50 | $677.50 | $649.70 | $607.40 | $615.60 | $621.60 | $579.30 | $552.80 | $2,577.10 | $2,369.30 | $2,238.60 | |||
Operating income | 213.9 | 229.4 | 205.8 | [1] | 160 | [2] | 196.1 | 200.3 | 179.3 | 162.9 | 809.1 | 738.6 | 715.9 | |
Net income | 141.7 | 138.4 | 130.2 | 94 | 114.4 | 119 | 15.7 | [3] | 104.2 | 504.3 | 353.3 | 379.4 | ||
Net income attributable to Kansas City Southern and subsidiaries | 141 | 138.1 | 129.8 | 93.7 | 113.8 | 118.4 | 15.4 | [3] | 103.8 | 502.6 | 351.4 | 377.3 | ||
Per share data: | ||||||||||||||
Basic earnings per common share | $1.28 | $1.25 | $1.18 | $0.85 | $1.03 | $1.08 | $0.14 | $0.94 | $4.56 | $3.19 | $3.44 | |||
Diluted earnings per common share | $1.28 | $1.25 | $1.18 | $0.85 | $1.03 | $1.07 | $0.14 | $0.94 | $4.55 | $3.18 | $3.43 | |||
Lease termination costs included in operating expenses | 8.4 | 29.9 | 38.3 | 0 | 0 | |||||||||
Debt retirement costs | ($111.40) | ($6.60) | ($119.20) | ($20.10) | ||||||||||
[1] | During the second quarter of 2014, the Company recognized pre-tax lease termination costs of $8.4 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||
[2] | During the first quarter of 2014, the Company recognized pre-tax lease termination costs of $29.9 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||
[3] | During the second quarter of 2013, the Company recognized pre-tax debt retirement costs of $111.4 million, related to debt restructuring activities that occurred during the period. |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Narrative) (Details) (KCSR [Member], Senior Notes [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
4.30% Senior Notes, Due May 15, 2043 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Outstanding principal amount of the Senior Notes | $450 |
Stated interest rate on Senior Notes | 4.30% |
Maturity date on Senior Notes | 15-May-43 |
3.85% Senior Notes, Due November 15, 2023 [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Outstanding principal amount of the Senior Notes | $200 |
Stated interest rate on Senior Notes | 3.85% |
Maturity date on Senior Notes | 15-Nov-23 |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Condensed Statements of Comprehensive Income Captions [Line Items] | ||||||||||||||
Revenues | $642.50 | $677.50 | $649.70 | $607.40 | $615.60 | $621.60 | $579.30 | $552.80 | $2,577.10 | $2,369.30 | $2,238.60 | |||
Operating expenses | 1,768 | 1,630.70 | 1,522.70 | |||||||||||
Operating income | 213.9 | 229.4 | 205.8 | [1] | 160 | [2] | 196.1 | 200.3 | 179.3 | 162.9 | 809.1 | 738.6 | 715.9 | |
Equity in net earnings of unconsolidated affiliates | 21.1 | 18.8 | 19.3 | |||||||||||
Interest expense | -72.8 | -80.6 | -100.4 | |||||||||||
Debt retirement costs | -111.4 | -6.6 | -119.2 | -20.1 | ||||||||||
Foreign exchange gain (loss) | -35.5 | -5.2 | 2.7 | |||||||||||
Other expense, net | -2.2 | -0.8 | -1 | |||||||||||
Income before income taxes | 713.1 | 551.6 | 616.4 | |||||||||||
Income tax expense (benefit) | 208.8 | 198.3 | 237 | |||||||||||
Net income | 141.7 | 138.4 | 130.2 | 94 | 114.4 | 119 | 15.7 | [3] | 104.2 | 504.3 | 353.3 | 379.4 | ||
Less: Net income attributable to noncontrolling interest | 1.7 | 1.9 | 2.1 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 141 | 138.1 | 129.8 | 93.7 | 113.8 | 118.4 | 15.4 | [3] | 103.8 | 502.6 | 351.4 | 377.3 | ||
Other comprehensive income (loss) | -1.2 | 0.4 | -0.2 | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 501.4 | 351.8 | 377.1 | |||||||||||
Parent [Member] | ||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Operating expenses | 7.6 | 4.8 | 4.2 | |||||||||||
Operating income | -7.6 | -4.8 | -4.2 | |||||||||||
Equity in net earnings of unconsolidated affiliates | 476.7 | 318.3 | 218.9 | |||||||||||
Interest expense | -0.1 | -0.1 | -0.1 | |||||||||||
Debt retirement costs | 0 | 0 | 0 | |||||||||||
Foreign exchange gain (loss) | 0 | 0 | 0 | |||||||||||
Other expense, net | 50.1 | 44.6 | 46.5 | |||||||||||
Income before income taxes | 519.1 | 358 | 261.1 | |||||||||||
Income tax expense (benefit) | 16.5 | 17.6 | 8.4 | |||||||||||
Net income | 502.6 | 340.4 | 252.7 | |||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 502.6 | 340.4 | 252.7 | |||||||||||
Other comprehensive income (loss) | -1.2 | 0.4 | -0.2 | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 501.4 | 340.8 | 252.5 | |||||||||||
KCSR [Member] | ||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | ||||||||||||||
Revenues | 1,215.80 | 1,115 | 1,079.70 | |||||||||||
Operating expenses | 881.6 | 829.6 | 805 | |||||||||||
Operating income | 334.2 | 285.4 | 274.7 | |||||||||||
Equity in net earnings of unconsolidated affiliates | -0.1 | 1.1 | 2.6 | |||||||||||
Interest expense | -83.3 | -68.5 | -65 | |||||||||||
Debt retirement costs | -2.7 | -1.5 | -19.6 | |||||||||||
Foreign exchange gain (loss) | 0 | -1.3 | 0 | |||||||||||
Other expense, net | 0.2 | 5.1 | 11.7 | |||||||||||
Income before income taxes | 248.3 | 220.3 | 204.4 | |||||||||||
Income tax expense (benefit) | 94.7 | 81.2 | 74.4 | |||||||||||
Net income | 153.6 | 139.1 | 130 | |||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 153.6 | 139.1 | 130 | |||||||||||
Other comprehensive income (loss) | 0.1 | 0.5 | -0.6 | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 153.7 | 139.6 | 129.4 | |||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | ||||||||||||||
Revenues | 48.7 | 42.6 | 29.9 | |||||||||||
Operating expenses | 41.8 | 39 | 34 | |||||||||||
Operating income | 6.9 | 3.6 | -4.1 | |||||||||||
Equity in net earnings of unconsolidated affiliates | 5.5 | 6.3 | 6.6 | |||||||||||
Interest expense | 0 | 0.1 | 0 | |||||||||||
Debt retirement costs | 0 | 0 | 0 | |||||||||||
Foreign exchange gain (loss) | 0 | 0 | 0 | |||||||||||
Other expense, net | 0 | -0.1 | 0 | |||||||||||
Income before income taxes | 12.4 | 9.9 | 2.5 | |||||||||||
Income tax expense (benefit) | 4.4 | 2.9 | -0.2 | |||||||||||
Net income | 8 | 7 | 2.7 | |||||||||||
Less: Net income attributable to noncontrolling interest | 1.7 | 1.9 | 2.1 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 6.3 | 5.1 | 0.6 | |||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 6.3 | 5.1 | 0.6 | |||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | ||||||||||||||
Revenues | 1,353.70 | 1,251.90 | 1,164.70 | |||||||||||
Operating expenses | 879.1 | 800.1 | 717.7 | |||||||||||
Operating income | 474.6 | 451.8 | 447 | |||||||||||
Equity in net earnings of unconsolidated affiliates | 18.9 | 15.7 | 15.5 | |||||||||||
Interest expense | -39.6 | -59.3 | -88.2 | |||||||||||
Debt retirement costs | -3.9 | -117.7 | -0.5 | |||||||||||
Foreign exchange gain (loss) | -35.5 | -3.9 | 2.7 | |||||||||||
Other expense, net | -1.2 | -0.6 | -128.5 | |||||||||||
Income before income taxes | 413.3 | 286 | 248 | |||||||||||
Income tax expense (benefit) | 93.2 | 96.6 | 154.4 | |||||||||||
Net income | 320.1 | 189.4 | 93.6 | |||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | 320.1 | 189.4 | 93.6 | |||||||||||
Other comprehensive income (loss) | -1.8 | -0.1 | 0.9 | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | 318.3 | 189.3 | 94.5 | |||||||||||
Consolidating Adjustments [Member] | ||||||||||||||
Condensed Statements of Comprehensive Income Captions [Line Items] | ||||||||||||||
Revenues | -41.1 | -40.2 | -35.7 | |||||||||||
Operating expenses | -42.1 | -42.8 | -38.2 | |||||||||||
Operating income | 1 | 2.6 | 2.5 | |||||||||||
Equity in net earnings of unconsolidated affiliates | -479.9 | -322.6 | -224.3 | |||||||||||
Interest expense | 50.2 | 47.2 | 52.9 | |||||||||||
Debt retirement costs | 0 | 0 | 0 | |||||||||||
Foreign exchange gain (loss) | 0 | 0 | 0 | |||||||||||
Other expense, net | -51.3 | -49.8 | 69.3 | |||||||||||
Income before income taxes | -480 | -322.6 | -99.6 | |||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||
Net income | -480 | -322.6 | -99.6 | |||||||||||
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | |||||||||||
Net income attributable to Kansas City Southern and subsidiaries | -480 | -322.6 | -99.6 | |||||||||||
Other comprehensive income (loss) | 1.7 | -0.4 | -0.3 | |||||||||||
Comprehensive income attributable to Kansas City Southern and subsidiaries | ($478.30) | ($323) | ($99.90) | |||||||||||
[1] | During the second quarter of 2014, the Company recognized pre-tax lease termination costs of $8.4 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||
[2] | During the first quarter of 2014, the Company recognized pre-tax lease termination costs of $29.9 million, due to the early termination of certain operating leases and the related purchase of equipment. | |||||||||||||
[3] | During the second quarter of 2013, the Company recognized pre-tax debt retirement costs of $111.4 million, related to debt restructuring activities that occurred during the period. |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ||
Current assets | $818.30 | $942.40 |
Investments | 36.4 | 41.1 |
Investments in consolidated subsidiaries | 0 | 0 |
Property and equipment (including concession assets), net | 7,154.70 | 6,356.30 |
Other assets | 81.6 | 95.6 |
Total assets | 8,091 | 7,435.40 |
Liabilities and equity: | ||
Current liabilities | 898.8 | 730.6 |
Long-term debt | 1,841 | 1,856.90 |
Deferred income taxes | 1,156.30 | 1,044.60 |
Other liabilities | 130.8 | 126.7 |
Stockholders’ equity | 3,755.50 | 3,370.60 |
Noncontrolling interest | 308.6 | 306 |
Total liabilities and equity | 8,091 | 7,435.40 |
Parent [Member] | ||
Assets: | ||
Current assets | 2.7 | 2.6 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | 2,616 | 2,154.60 |
Property and equipment (including concession assets), net | 0 | 0.1 |
Other assets | 1.6 | 1.5 |
Total assets | 2,620.30 | 2,158.80 |
Liabilities and equity: | ||
Current liabilities | -1,156 | -1,216.50 |
Long-term debt | 0.2 | 0.2 |
Deferred income taxes | 7.3 | -11.7 |
Other liabilities | 3.7 | 6.6 |
Stockholders’ equity | 3,765.10 | 3,380.20 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 2,620.30 | 2,158.80 |
KCSR [Member] | ||
Assets: | ||
Current assets | 281.7 | 403 |
Investments | 3.9 | 9.6 |
Investments in consolidated subsidiaries | -4.3 | -2.1 |
Property and equipment (including concession assets), net | 3,385.50 | 2,780.40 |
Other assets | 45.2 | 50.9 |
Total assets | 3,712 | 3,241.80 |
Liabilities and equity: | ||
Current liabilities | 1,484.70 | 1,580.60 |
Long-term debt | 701 | 704.3 |
Deferred income taxes | 835.8 | 719.8 |
Other liabilities | 94.4 | 92 |
Stockholders’ equity | 596.1 | 145.1 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 3,712 | 3,241.80 |
Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 6 | 8.8 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | 471.3 | 461.8 |
Property and equipment (including concession assets), net | 193.3 | 198.6 |
Other assets | 0 | 0 |
Total assets | 670.6 | 669.2 |
Liabilities and equity: | ||
Current liabilities | 115.6 | 130.7 |
Long-term debt | 0.2 | 0.2 |
Deferred income taxes | 132 | 127.6 |
Other liabilities | 0.7 | 0.7 |
Stockholders’ equity | 113.5 | 104 |
Noncontrolling interest | 308.6 | 306 |
Total liabilities and equity | 670.6 | 669.2 |
Non-Guarantor Subsidiaries [Member] | ||
Assets: | ||
Current assets | 562.5 | 560.1 |
Investments | 32.5 | 31.5 |
Investments in consolidated subsidiaries | 0 | 0 |
Property and equipment (including concession assets), net | 3,575.90 | 3,377.20 |
Other assets | 34.8 | 43.2 |
Total assets | 4,205.70 | 4,012 |
Liabilities and equity: | ||
Current liabilities | 489.1 | 267.9 |
Long-term debt | 1,139.60 | 1,152.20 |
Deferred income taxes | 181.2 | 208.9 |
Other liabilities | 32 | 27.5 |
Stockholders’ equity | 2,363.80 | 2,355.50 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | 4,205.70 | 4,012 |
Consolidating Adjustments [Member] | ||
Assets: | ||
Current assets | -34.6 | -32.1 |
Investments | 0 | 0 |
Investments in consolidated subsidiaries | -3,083 | -2,614.30 |
Property and equipment (including concession assets), net | 0 | 0 |
Other assets | 0 | 0 |
Total assets | -3,117.60 | -2,646.40 |
Liabilities and equity: | ||
Current liabilities | -34.6 | -32.1 |
Long-term debt | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other liabilities | 0 | -0.1 |
Stockholders’ equity | -3,083 | -2,614.20 |
Noncontrolling interest | 0 | 0 |
Total liabilities and equity | ($3,117.60) | ($2,646.40) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net cash provided (used) | $906 | $798.30 | $673.20 |
Investing activities: | |||
Capital expenditures | -668.2 | -594.8 | -517.1 |
Purchase or replacement of equipment under operating leases | -302.1 | -211.8 | -22.9 |
Property investments in MSLLC | -26.7 | -31.6 | -35.2 |
Proceeds from repayment of loans to affiliates | 0 | 0 | |
Loans to affiliates | 0 | ||
Contribution to consolidated affiliates | 0 | ||
Other investing activities | 14.1 | 4.9 | 23.3 |
Net cash used for investing activities | -982.9 | -833.3 | -551.9 |
Financing activities: | |||
Proceeds from short-term borrowings | 15,368.80 | 0 | 0 |
Repayment of short-term borrowings | -14,920.20 | 0 | 0 |
Proceeds from issuance of long-term debt | 175 | 1,918.40 | 329.6 |
Repayment of long-term debt | -508 | -1,343.20 | -375.9 |
Debt costs | -4.9 | -117.8 | -22.1 |
Dividends paid | -116.6 | -71.2 | -86.1 |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | |
Contributions from affiliates | 0 | ||
Other financing activities | -3.6 | 5.7 | 33.4 |
Net cash provided by (used for) financing activities | -4.6 | 391.9 | -121.1 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | -81.5 | 356.9 | 0.2 |
At beginning of year | 429.5 | 72.6 | 72.4 |
At end of year | 348 | 429.5 | 72.6 |
Parent [Member] | |||
Operating activities: | |||
Net cash provided (used) | 415.7 | 70.7 | 53.3 |
Investing activities: | |||
Capital expenditures | 0 | 0 | 0 |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 0 | 0 | |
Loans to affiliates | 0 | ||
Contribution to consolidated affiliates | -299.6 | ||
Other investing activities | -1 | -4.9 | -0.5 |
Net cash used for investing activities | -300.6 | -4.9 | -0.5 |
Financing activities: | |||
Proceeds from short-term borrowings | 0 | ||
Repayment of short-term borrowings | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | 0 | 0 | 0 |
Debt costs | 0 | 0 | |
Dividends paid | -116.6 | -71.2 | -86.1 |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | |
Contributions from affiliates | 0 | ||
Other financing activities | 1.3 | 5.7 | 33.4 |
Net cash provided by (used for) financing activities | -115.3 | -65.5 | -52.7 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | -0.2 | 0.3 | 0.1 |
At beginning of year | 0.4 | 0.1 | 0 |
At end of year | 0.2 | 0.4 | 0.1 |
KCSR [Member] | |||
Operating activities: | |||
Net cash provided (used) | 306.6 | 272.2 | 236.4 |
Investing activities: | |||
Capital expenditures | -477.8 | -417.4 | -281.2 |
Purchase or replacement of equipment under operating leases | -203.6 | -130.9 | -19.7 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 181.4 | 87.2 | |
Loans to affiliates | -69.5 | ||
Contribution to consolidated affiliates | 0 | ||
Other investing activities | 9.7 | -5.1 | 5.8 |
Net cash used for investing activities | -671.7 | -441.5 | -207.9 |
Financing activities: | |||
Proceeds from short-term borrowings | 15,068.80 | ||
Repayment of short-term borrowings | -14,920.20 | ||
Proceeds from issuance of long-term debt | 175 | 687.6 | 329.6 |
Repayment of long-term debt | -423.5 | -344.3 | -356.2 |
Debt costs | -7.5 | -21.3 | |
Dividends paid | 0 | 0 | 0 |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | |
Contributions from affiliates | 299.3 | ||
Other financing activities | -1.4 | 0 | 0 |
Net cash provided by (used for) financing activities | 198 | 335.8 | -47.9 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | -167.1 | 166.5 | -19.4 |
At beginning of year | 196.1 | 29.6 | 49 |
At end of year | 29 | 196.1 | 29.6 |
Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided (used) | 2.1 | 2.6 | 2.3 |
Investing activities: | |||
Capital expenditures | -1.7 | -2 | -2.1 |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | 0 | 0 | |
Loans to affiliates | 0 | ||
Contribution to consolidated affiliates | 0 | ||
Other investing activities | -1.1 | -1.1 | -0.5 |
Net cash used for investing activities | -2.8 | -3.1 | -2.6 |
Financing activities: | |||
Proceeds from short-term borrowings | 0 | ||
Repayment of short-term borrowings | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | -0.1 | -0.1 | -0.1 |
Debt costs | 0 | 0 | |
Dividends paid | 0 | 0 | 0 |
Proceeds from loans from affiliates | 0 | ||
Repayment of loans from affiliates | 0 | 0 | |
Contributions from affiliates | 1.1 | ||
Other financing activities | 0 | 0.7 | 0.5 |
Net cash provided by (used for) financing activities | 1 | 0.6 | 0.4 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 0.3 | 0.1 | 0.1 |
At beginning of year | 0.2 | 0.1 | 0 |
At end of year | 0.5 | 0.2 | 0.1 |
Non-Guarantor Subsidiaries [Member] | |||
Operating activities: | |||
Net cash provided (used) | 495.9 | 463.8 | 389.2 |
Investing activities: | |||
Capital expenditures | -190.2 | -175.8 | -233.8 |
Purchase or replacement of equipment under operating leases | -98.5 | -80.9 | -3.2 |
Property investments in MSLLC | -26.7 | -31.6 | -35.2 |
Proceeds from repayment of loans to affiliates | 0 | 0 | |
Loans to affiliates | 0 | ||
Contribution to consolidated affiliates | 0 | ||
Other investing activities | 5.8 | 10.8 | 17.5 |
Net cash used for investing activities | -309.6 | -277.5 | -254.7 |
Financing activities: | |||
Proceeds from short-term borrowings | 300 | ||
Repayment of short-term borrowings | 0 | ||
Proceeds from issuance of long-term debt | 0 | 1,230.80 | 0 |
Repayment of long-term debt | -84.4 | -998.8 | -19.6 |
Debt costs | -110.3 | -0.8 | |
Dividends paid | -314.3 | -11 | -8 |
Proceeds from loans from affiliates | 69.5 | ||
Repayment of loans from affiliates | -181.4 | -87.2 | |
Contributions from affiliates | 1.4 | ||
Other financing activities | -3.5 | 4.9 | 0.5 |
Net cash provided by (used for) financing activities | -100.8 | 3.7 | -115.1 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 85.5 | 190 | 19.4 |
At beginning of year | 232.8 | 42.8 | 23.4 |
At end of year | 318.3 | 232.8 | 42.8 |
Consolidating Adjustments [Member] | |||
Operating activities: | |||
Net cash provided (used) | -314.3 | -11 | -8 |
Investing activities: | |||
Capital expenditures | 1.5 | 0.4 | 0 |
Purchase or replacement of equipment under operating leases | 0 | 0 | 0 |
Property investments in MSLLC | 0 | 0 | 0 |
Proceeds from repayment of loans to affiliates | -181.4 | -87.2 | |
Loans to affiliates | 69.5 | ||
Contribution to consolidated affiliates | 299.6 | ||
Other investing activities | 0.7 | 5.2 | 1 |
Net cash used for investing activities | 301.8 | -106.3 | -86.2 |
Financing activities: | |||
Proceeds from short-term borrowings | 0 | ||
Repayment of short-term borrowings | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | 0 |
Repayment of long-term debt | 0 | 0 | 0 |
Debt costs | 0 | 0 | |
Dividends paid | 314.3 | 11 | 8 |
Proceeds from loans from affiliates | -69.5 | ||
Repayment of loans from affiliates | 181.4 | 87.2 | |
Contributions from affiliates | -301.8 | ||
Other financing activities | 0 | -5.6 | -1 |
Net cash provided by (used for) financing activities | 12.5 | 117.3 | 94.2 |
Cash and cash equivalents: | |||
Net increase (decrease) during each year | 0 | 0 | 0 |
At beginning of year | 0 | 0 | 0 |
At end of year | $0 | $0 | $0 |
Geographic_Information_Informa
Geographic Information (Information by Geographic Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $642.50 | $677.50 | $649.70 | $607.40 | $615.60 | $621.60 | $579.30 | $552.80 | $2,577.10 | $2,369.30 | $2,238.60 |
Property and equipment (including concession assets), net | 7,154.70 | 6,356.30 | 7,154.70 | 6,356.30 | |||||||
UNITED STATES | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,372.20 | 1,268 | 1,216.70 | ||||||||
Property and equipment (including concession assets), net | 4,311 | 3,662.20 | 4,311 | 3,662.20 | |||||||
MEXICO | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,204.90 | 1,101.30 | 1,021.90 | ||||||||
Property and equipment (including concession assets), net | $2,843.70 | $2,694.10 | $2,843.70 | $2,694.10 |
Subsequent_Events_Details
Subsequent Events (Details) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 29, 2015 | Jan. 31, 2015 | Jan. 31, 2015 |
USD ($) | USD ($) | USD ($) | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Foreign Currency Forward Contracts [Member] | Foreign Currency Forward Contracts [Member] | Foreign Currency Forward Contracts [Member] | Foreign Currency Forward Contracts [Member] | Foreign Currency Forward Contracts [Member] | Foreign Currency Forward Contracts [Member] | Foreign Currency Forward Contracts [Member] | USD ($) | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||||
USD ($) | MXN | USD ($) | MXN | USD ($) | MXN | USD ($) | Foreign Currency Forward Contracts [Member] | Foreign Currency Forward Contracts [Member] | |||||
USD ($) | MXN | ||||||||||||
Foreign Currency Hedging [Abstract] | |||||||||||||
Aggregate notional amount of foreign currency forward contracts | $300 | 4,364.70 | $345 | 4,642.50 | $325 | 4,202.30 | $0 | $300 | 4,480.40 | ||||
Foreign currency forward contracts maturity date | 15-Jan-15 | 15-Jan-15 | 31-Dec-14 | 31-Dec-14 | 31-Dec-13 | 31-Dec-13 | 15-Jan-16 | 15-Jan-16 | |||||
Weighted average exchange rate of foreign currency forward contracts (in Ps per USD) | 14.55 | 13.46 | 12.93 | 14.93 | |||||||||
Common Stock Dividend [Abstract] | |||||||||||||
Cash dividends declared per common share | $1.12 | $0.86 | $0.78 | $0.33 | |||||||||
Aggregate amount of dividends on common stock | $123.60 | $94.80 | $85.90 | $36.40 |