Form 20-F
|
Form 40-F
|
X
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
|
·
|
Net income was C$886 million, or C$1.10 per diluted share, compared with net income of C$847 million, or C$1.03 per diluted share, for second-quarter 2014. The Q2-2015 results included a deferred income tax expense of C$42 million (C$0.05 per diluted share) resulting from the enactment of a higher provincial corporate income tax rate.
|
·
|
Excluding the deferred income tax expense, Q2-2015 adjusted diluted EPS increased 12 per cent to C$1.15 from year-earlier diluted EPS of C$1.03. (1)
|
·
|
Q2-2015 operating income increased eight per cent to C$1,362 million.
|
·
|
Second-quarter 2015 revenues were flat at C$3,125 million, carloadings decreased by three per cent, and revenue ton-miles declined by seven per cent.
|
·
|
CN’s operating ratio for Q2-2015 improved by 3.2 points to 56.4 per cent from 59.6 per cent the year before.
|
·
|
Free cash flow for the first six months of 2015 was C$1,051 million, compared with C$1,270 million for the year-earlier period. (1)
|
1)
|
See discussion and reconciliation of non-GAAP adjusted performance measures in the attached supplementary schedule, Non-GAAP Measures.
|
2)
|
See Forward-Looking statements for a summary of the key assumptions and risks regarding CN’s 2015 outlook.
|
Media
|
Investment Community
|
Mark Hallman
|
Janet Drysdale
|
Director
|
Vice-President
|
Communications and Public Affairs
|
Investor Relations
|
(905) 669-3384
|
(514) 399-0052
|
Consolidated Statement of Income - unaudited
|
Three months ended
|
Six months ended
|
|||||||||||||||||||||||||
June 30
|
June 30
|
|||||||||||||||||||||||||
In millions, except per share data
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||||||||
Revenues
|
$
|
3,125
|
$
|
3,116
|
$
|
6,223
|
$
|
5,809
|
||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||
Labor and fringe benefits
|
542
|
560
|
1,210
|
1,147
|
||||||||||||||||||||||
Purchased services and material
|
434
|
390
|
891
|
778
|
||||||||||||||||||||||
Fuel
|
327
|
484
|
688
|
952
|
||||||||||||||||||||||
Depreciation and amortization
|
285
|
257
|
581
|
513
|
||||||||||||||||||||||
Equipment rents
|
83
|
84
|
177
|
161
|
||||||||||||||||||||||
Casualty and other
|
92
|
83
|
251
|
180
|
||||||||||||||||||||||
Total operating expenses
|
1,763
|
1,858
|
3,798
|
3,731
|
||||||||||||||||||||||
Operating income
|
1,362
|
1,258
|
2,425
|
2,078
|
||||||||||||||||||||||
Interest expense
|
(105)
|
(91)
|
(209)
|
(183)
|
||||||||||||||||||||||
Other income (Note 3)
|
16
|
2
|
20
|
96
|
||||||||||||||||||||||
Income before income taxes
|
1,273
|
1,169
|
2,236
|
1,991
|
||||||||||||||||||||||
Income tax expense (Note 4)
|
(387)
|
(322)
|
(646)
|
(521)
|
||||||||||||||||||||||
Net income
|
$
|
886
|
$
|
847
|
$
|
1,590
|
$
|
1,470
|
||||||||||||||||||
Earnings per share (Note 5)
|
||||||||||||||||||||||||||
Basic
|
$
|
1.10
|
$
|
1.03
|
$
|
1.97
|
$
|
1.78
|
||||||||||||||||||
Diluted
|
$
|
1.10
|
$
|
1.03
|
$
|
1.96
|
$
|
1.77
|
||||||||||||||||||
Weighted-average number of shares (Note 5)
|
||||||||||||||||||||||||||
Basic
|
803.5
|
821.8
|
806.4
|
824.9
|
||||||||||||||||||||||
Diluted
|
808.0
|
825.3
|
811.1
|
828.3
|
||||||||||||||||||||||
See accompanying notes to unaudited consolidated financial statements.
|
Consolidated Statement of Comprehensive Income - unaudited
|
Three months ended
|
Six months ended
|
|||||||||||||
June 30
|
June 30
|
|||||||||||||
In millions
|
2015
|
2014
|
2015
|
2014
|
||||||||||
Net income
|
$
|
886
|
$
|
847
|
$
|
1,590
|
$
|
1,470
|
||||||
Other comprehensive income (loss) (Note 9)
|
||||||||||||||
Net gain (loss) on foreign currency translation
|
(18)
|
(30)
|
78
|
(5)
|
||||||||||
Net change in pension and other postretirement benefit plans
|
54
|
30
|
115
|
63
|
||||||||||
Other comprehensive income before income taxes
|
36
|
-
|
193
|
58
|
||||||||||
Income tax recovery (expense)
|
(27)
|
(38)
|
42
|
(14)
|
||||||||||
Other comprehensive income (loss)
|
9
|
(38)
|
235
|
44
|
||||||||||
Comprehensive income
|
$
|
895
|
$
|
809
|
$
|
1,825
|
$
|
1,514
|
||||||
See accompanying notes to unaudited consolidated financial statements.
|
Canadian National Railway Company
|
Consolidated Balance Sheet - unaudited
|
June 30
|
December 31
|
||||
In millions
|
2015
|
2014
|
|||
Assets
|
|||||
Current assets
|
|||||
Cash and cash equivalents
|
$
|
86
|
$
|
52
|
|
Restricted cash and cash equivalents (Note 6)
|
462
|
463
|
|||
Accounts receivable
|
910
|
928
|
|||
Material and supplies
|
463
|
335
|
|||
Deferred and receivable income taxes
|
76
|
163
|
|||
Other
|
162
|
125
|
|||
Total current assets
|
2,159
|
2,066
|
|||
Properties
|
30,053
|
28,514
|
|||
Pension asset
|
1,070
|
882
|
|||
Intangible and other assets
|
323
|
330
|
|||
Total assets
|
$
|
33,605
|
$
|
31,792
|
|
Liabilities and shareholders’ equity
|
|||||
Current liabilities
|
|||||
Accounts payable and other
|
$
|
1,596
|
$
|
1,657
|
|
Current portion of long-term debt
|
1,502
|
544
|
|||
Total current liabilities
|
3,098
|
2,201
|
|||
Deferred income taxes
|
7,383
|
6,902
|
|||
Other liabilities and deferred credits
|
662
|
704
|
|||
Pension and other postretirement benefits
|
666
|
650
|
|||
Long-term debt
|
7,842
|
7,865
|
|||
Shareholders’ equity
|
|||||
Common shares
|
3,687
|
3,718
|
|||
Common shares in Share Trusts (Note 6)
|
(44)
|
-
|
|||
Additional paid-in capital
|
461
|
439
|
|||
Accumulated other comprehensive loss (Note 9)
|
(2,192)
|
(2,427)
|
|||
Retained earnings
|
12,042
|
11,740
|
|||
Total shareholders’ equity
|
13,954
|
13,470
|
|||
Total liabilities and shareholders’ equity
|
$
|
33,605
|
$
|
31,792
|
|
See accompanying notes to unaudited consolidated financial statements.
|
Canadian National Railway Company
|
Consolidated Statement of Changes in Shareholders’ Equity - unaudited
|
Number of
|
Common
|
Accumulated
|
|||||||||||||||||||
common shares
|
shares
|
Additional
|
other
|
Total
|
|||||||||||||||||
Share
|
Common
|
in Share
|
paid-in
|
comprehensive
|
Retained
|
shareholders’
|
|||||||||||||||
In millions
|
Outstanding
|
Trusts
|
shares
|
Trusts
|
capital
|
loss (Note 9)
|
earnings
|
equity
|
|||||||||||||
Balance at December 31, 2014
|
809.4
|
-
|
$
|
3,718
|
$
|
-
|
$
|
439
|
$
|
(2,427)
|
$
|
11,740
|
$
|
13,470
|
|||||||
Net income
|
1,590
|
1,590
|
|||||||||||||||||||
Stock-based compensation
|
0.4
|
18
|
22
|
(2)
|
38
|
||||||||||||||||
Share repurchase program (Note 6)
|
(10.7)
|
(49)
|
(784)
|
(833)
|
|||||||||||||||||
Share purchases by Share Trusts (Note 6)
|
(0.6)
|
0.6
|
(44)
|
(44)
|
|||||||||||||||||
Other comprehensive income
|
235
|
235
|
|||||||||||||||||||
Dividends
|
(502)
|
(502)
|
|||||||||||||||||||
Balance at June 30, 2015
|
798.5
|
0.6
|
$
|
3,687
|
$
|
(44)
|
$
|
461
|
$
|
(2,192)
|
$
|
12,042
|
$
|
13,954
|
|||||||
Number of
|
Common
|
Accumulated
|
|||||||||||||||||||
common shares
|
shares
|
Additional
|
other
|
Total
|
|||||||||||||||||
Share
|
Common
|
in Share
|
paid-in
|
comprehensive
|
Retained
|
shareholders’
|
|||||||||||||||
In millions
|
Outstanding
|
Trusts
|
shares
|
(1)
|
Trusts
|
capital
|
(1)
|
loss (Note 9)
|
earnings
|
equity
|
|||||||||||
Balance at December 31, 2013
|
830.6
|
-
|
$
|
3,795
|
$
|
-
|
$
|
220
|
$
|
(1,850)
|
$
|
10,788
|
$
|
12,953
|
|||||||
Net income
|
1,470
|
1,470
|
|||||||||||||||||||
Stock-based compensation
|
0.5
|
15
|
3
|
18
|
|||||||||||||||||
Share repurchase program (Note 6)
|
(11.9)
|
(58)
|
(672)
|
(730)
|
|||||||||||||||||
Other comprehensive income
|
44
|
44
|
|||||||||||||||||||
Dividends
|
(412)
|
(412)
|
|||||||||||||||||||
Balance at June 30, 2014
|
819.2
|
-
|
$
|
3,752
|
$
|
-
|
$
|
223
|
$
|
(1,806)
|
$
|
11,174
|
$
|
13,343
|
|||||||
See accompanying notes to unaudited consolidated financial statements.
|
|||||||||||||||||||||
(1) The Company reclassified certain 2014 balances from Common shares to Additional paid-in capital to conform with the 2015 presentation.
|
Canadian National Railway Company
|
Consolidated Statement of Cash Flows - unaudited
|
|
Three months ended
|
Six months ended
|
||||||||||
June 30
|
June 30
|
|||||||||||
In millions
|
2015
|
2014
|
2015
|
2014
|
||||||||
Operating activities
|
||||||||||||
Net income
|
$
|
886
|
$
|
847
|
$
|
1,590
|
$
|
1,470
|
||||
Adjustments to reconcile net income to net cash
|
||||||||||||
provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
285
|
257
|
581
|
513
|
||||||||
Deferred income taxes
|
147
|
53
|
217
|
148
|
||||||||
Gain on disposal of property (Note 3)
|
-
|
-
|
-
|
(80)
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable
|
5
|
(47)
|
76
|
(99)
|
||||||||
Material and supplies
|
(35)
|
(27)
|
(119)
|
(81)
|
||||||||
Accounts payable and other
|
(91)
|
143
|
(70)
|
96
|
||||||||
Other current assets
|
10
|
24
|
(7)
|
11
|
||||||||
Pensions and other, net
|
(4)
|
23
|
(73)
|
(60)
|
||||||||
Net cash provided by operating activities
|
1,203
|
1,273
|
2,195
|
1,918
|
||||||||
Investing activities
|
||||||||||||
Property additions
|
(659)
|
(482)
|
(1,127)
|
(730)
|
||||||||
Disposal of property (Note 3)
|
-
|
-
|
-
|
97
|
||||||||
Change in restricted cash and cash equivalents
|
11
|
3
|
1
|
(20)
|
||||||||
Other, net
|
(14)
|
(15)
|
(17)
|
(15)
|
||||||||
Net cash used in investing activities
|
(662)
|
(494)
|
(1,143)
|
(668)
|
||||||||
Financing activities
|
||||||||||||
Issuance of debt
|
-
|
-
|
-
|
347
|
||||||||
Repayment of debt
|
(9)
|
(117)
|
(56)
|
(573)
|
||||||||
Net issuance of commercial paper (Note 6)
|
69
|
(180)
|
379
|
9
|
||||||||
Common shares issued for stock options exercised,
|
||||||||||||
equity award settlements, and excess tax benefits
|
3
|
6
|
13
|
13
|
||||||||
Repurchase of common shares (Note 6)
|
(402)
|
(347)
|
(812)
|
(712)
|
||||||||
Purchase of common shares by Share Trusts (Note 6)
|
(44)
|
-
|
(44)
|
-
|
||||||||
Dividends paid
|
(250)
|
(206)
|
(502)
|
(412)
|
||||||||
Net cash used in financing activities
|
(633)
|
(844)
|
(1,022)
|
(1,328)
|
||||||||
Effect of foreign exchange fluctuations on US
|
||||||||||||
dollar-denominated cash and cash equivalents
|
-
|
(6)
|
4
|
(9)
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(92)
|
(71)
|
34
|
(87)
|
||||||||
Cash and cash equivalents, beginning of period
|
178
|
198
|
52
|
214
|
||||||||
Cash and cash equivalents, end of period
|
$
|
86
|
$
|
127
|
$
|
86
|
$
|
127
|
||||
Supplemental cash flow information
|
|
|||||||||||
Net cash receipts from customers and other
|
$
|
3,083
|
$
|
3,060
|
$
|
6,295
|
$
|
5,732
|
||||
Net cash payments for:
|
|
|||||||||||
Employee services, suppliers and other expenses
|
(1,564)
|
(1,512)
|
(3,364)
|
(3,196)
|
||||||||
Interest
|
(111)
|
(105)
|
(202)
|
(210)
|
||||||||
Personal injury and other claims
|
(13)
|
(11)
|
(28)
|
(24)
|
||||||||
Pensions (Note 7)
|
(6)
|
(7)
|
(92)
|
(100)
|
||||||||
Income taxes
|
(186)
|
(152)
|
(414)
|
(284)
|
||||||||
Net cash provided by operating activities
|
$
|
1,203
|
$
|
1,273
|
$
|
2,195
|
$
|
1,918
|
||||
See accompanying notes to unaudited consolidated financial statements.
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
1 - Basis of presentation
|
In management’s opinion, the accompanying unaudited Interim Consolidated Financial Statements and Notes thereto, expressed in Canadian dollars, and prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial statements, contain all adjustments (consisting of normal recurring accruals) necessary to present fairly Canadian National Railway Company’s (“CN” or the “Company”) financial position as at June 30, 2015 and December 31, 2014, its results of operations and cash flows for the three and six months ended June 30, 2015 and 2014, as well as changes in shareholders’ equity for the six months ended June 30, 2015 and 2014.
|
These unaudited Interim Consolidated Financial Statements and Notes thereto have been prepared using accounting policies consistent with those used in preparing the Company’s 2014 Annual Consolidated Financial Statements and Notes thereto. While management believes that the disclosures presented are adequate to ensure that the information is not misleading, these unaudited Interim Consolidated Financial Statements and Notes thereto should be read in conjunction with the Company’s 2014 Annual Consolidated Financial Statements and Notes thereto.
|
2 - Recent accounting pronouncement
|
On April 7, 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Interest – Imputation of Interest. This ASU simplifies the presentation of debt issuance costs by requiring that such costs be presented in the balance sheet as a deduction from the carrying amount of debt. This standard is effective for annual and interim reporting periods beginning after December 15, 2015. Early adoption is permitted and the new guidance should be applied on a retrospective basis. The Company plans to implement this standard in the fourth quarter of 2015. The Company does not expect a significant impact to its Consolidated Financial Statements from the adoption of this standard.
|
Disposal of property
|
2014
|
Deux-Montagnes
|
On February 28, 2014, the Company closed a transaction with Agence Métropolitaine de Transport to sell the Deux-Montagnes subdivision between Saint-Eustache and Montreal, Quebec, including the Mont-Royal tunnel, together with the rail fixtures (collectively the “Deux-Montagnes”), for cash proceeds of $97 million before transaction costs. Under the agreement, the Company obtained the perpetual right to operate freight trains over the Deux-Montagnes at its then current level of operating activity, with the possibility of increasing its operating activity for additional consideration. The transaction resulted in a gain on disposal of $80 million ($72 million after-tax) that was recorded in Other income under the full accrual method of accounting for real estate transactions.
|
Included in the 2015 figures was a deferred income tax expense of $42 million resulting from the enactment of a higher provincial corporate income tax rate, which was recorded in the second quarter.
|
Included in the 2014 figure was an income tax recovery of $18 million resulting from a change in estimate of the deferred income tax liability related to properties, which was recorded in the first quarter.
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
5 – Earnings per share
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
In millions, except per share data
|
2015
|
2014
|
2015
|
2014
|
|||||||
Net income
|
$
|
886
|
$
|
847
|
$
|
1,590
|
$
|
1,470
|
|||
Weighted-average basic shares outstanding
|
803.5
|
821.8
|
806.4
|
824.9
|
|||||||
Effect of stock-based compensation
|
4.5
|
3.5
|
4.7
|
3.4
|
|||||||
Weighted-average diluted shares outstanding
|
808.0
|
825.3
|
811.1
|
828.3
|
|||||||
Basic earnings per share
|
$
|
1.10
|
$
|
1.03
|
$
|
1.97
|
$
|
1.78
|
|||
Diluted earnings per share
|
$
|
1.10
|
$
|
1.03
|
$
|
1.96
|
$
|
1.77
|
The Company has an $800 million revolving credit facility agreement with a consortium of lenders. The agreement, which contains customary terms and conditions, allows for an increase in the facility amount, up to a maximum of $1.3 billion, as well as the option to extend the term by an additional year at each anniversary date, subject to the consent of individual lenders. On March 12, 2015, the Company exercised such option and extended the term of its agreement by one year to May 5, 2020. The credit facility is available for general corporate purposes, including back-stopping the Company’s commercial paper program, and provides for borrowings at various interest rates, including the Canadian prime rate, bankers’ acceptance rates, the U.S. federal funds effective rate and the London Interbank Offered Rate (LIBOR), plus applicable margins. The credit facility agreement has one financial covenant, which limits debt as a percentage of total capitalization, and with which the Company is in compliance. As at June 30, 2015 and December 31, 2014, the Company had no outstanding borrowings under its revolving credit facility and there were no draws during the six months ended June 30, 2015.
|
Commercial paper
|
The Company has a commercial paper program in Canada and a new commercial paper program was established in the U.S. during the second quarter of 2015. Both programs are back-stopped by the Company’s revolving credit facility, enabling it to issue commercial paper up to a maximum aggregate principal amount of $800 million, or the US dollar equivalent on a combined basis. As at June 30, 2015, the Company had total commercial paper borrowings of $380 million (nil as at December 31, 2014) at a weighted-average interest rate of 0.87% presented in Current portion of long-term debt on the Consolidated Balance Sheet.
|
Accounts receivable securitization program
|
The Company has an agreement to sell an undivided co-ownership interest in a revolving pool of accounts receivable to unrelated trusts for maximum cash proceeds of $450 million. On June 18, 2015, the Company extended the term of its agreement by one year to February 1, 2018. As at June 30, 2015, the Company had proceeds of $50 million ($50 million as at December 31, 2014) received under the accounts receivable securitization program presented in Current portion of long-term debt on the Consolidated Balance Sheet at a weighted-average interest rate of 0.96% (1.24% as at December 31, 2014) which is secured by, and limited to, $56 million ($56 million as at December 31, 2014) of accounts receivable.
|
|
Bilateral letter of credit facilities and Restricted cash and cash equivalents
|
The Company has a series of bilateral letter of credit facility agreements with various banks to support its requirements to post letters of credit in the ordinary course of business. On March 12, 2015, the Company extended the expiry date of its agreements by one year to April 28, 2018. Under these agreements, the Company has the option from time to time to pledge collateral in the form of cash or cash equivalents, for a minimum term of one month, equal to at least the face value of the letters of credit issued. As at June 30, 2015, the Company had letters of credit drawn of $485 million ($487 million as at December 31, 2014) from a total committed amount of $517 million ($511 million as at December 31, 2014) by the various banks. As at June 30, 2015, cash and cash equivalents of $462 million ($463 million as at December 31, 2014) were pledged as collateral and recorded as Restricted cash and cash equivalents on the Consolidated Balance Sheet.
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
Share purchases
|
Share repurchase programs
|
The Company may repurchase shares pursuant to a normal course issuer bid (NCIB) at prevailing market prices plus brokerage fees, or such other prices as may be permitted by the Toronto Stock Exchange. Under its current NCIB, the Company may repurchase up to 28.0 million common shares between October 24, 2014 and October 23, 2015. As at June 30, 2015, the Company had repurchased 16.3 million common shares for $1,243 million under its current program.
|
The following table provides the information related to the share repurchase programs for the three and six months ended June 30, 2015 and 2014:
|
|
Three months ended June 30
|
Six months ended June 30
|
||||||||
In millions, except per share data
|
2015
|
2014
|
2015
|
2014
|
||||||
Number of common shares repurchased (1)
|
5.3
|
5.6
|
10.7
|
11.9
|
||||||
Weighted-average price per share (2)
|
$
|
77.14
|
$
|
64.70
|
$
|
78.17
|
$
|
61.29
|
||
Amount of repurchase (3)
|
$
|
404
|
$
|
365
|
$
|
833
|
$
|
730
|
||
(1)
|
Includes repurchases of common shares in the first quarters of 2015 and 2014 pursuant to private agreements between the Company and arm's length third-party sellers.
|
|||||||||
(2)
|
Includes brokerage fees.
|
|||||||||
(3)
|
Includes settlements in subsequent periods.
|
7 - Pensions and other postretirement benefits
|
The Company has various retirement benefit plans under which substantially all of its employees are entitled to benefits at retirement age, generally based on compensation and length of service and/or contributions. Additional information relating to the retirement benefit plans is provided in Note 12 - Pensions and other postretirement benefits to the Company’s 2014 Annual Consolidated Financial Statements.
|
Components of net periodic benefit cost (income) for pensions and other postretirement benefits (OPEB)
|
||||||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||||||||
|
Pensions
|
OPEB
|
Pensions
|
OPEB
|
||||||||||||||
In millions
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||
Current service cost
|
$
|
35
|
$
|
31
|
$
|
-
|
$
|
-
|
$
|
78
|
$
|
66
|
$
|
1
|
$
|
1
|
||
Interest cost
|
162
|
177
|
2
|
4
|
325
|
355
|
5
|
6
|
||||||||||
Expected return on plan assets
|
(251)
|
(244)
|
(502)
|
(489)
|
||||||||||||||
Amortization of prior service cost
|
1
|
1
|
1
|
-
|
2
|
2
|
1
|
1
|
||||||||||
Amortization of net actuarial loss (gain)
|
53
|
30
|
(1)
|
(1)
|
114
|
62
|
(2)
|
(2)
|
||||||||||
Net periodic benefit cost (income) (1)
|
$
|
-
|
$
|
(5)
|
$
|
2
|
$
|
3
|
$
|
17
|
$
|
(4)
|
$
|
5
|
$
|
6
|
||
(1)
|
In the second quarter of 2015, the Company revised its estimate of full year Net periodic benefit cost (income) for pensions to reflect updated plan demographic information.
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
The Company has various stock-based compensation plans for eligible employees. A description of the Company’s major plans is provided in Note 14 – Stock plans to the Company’s 2014 Annual Consolidated Financial Statements.
|
Three months ended June 30
|
Six months ended June 30
|
|||||||||
In millions
|
2015
|
2014
|
2015
|
2014
|
||||||
Equity settled awards
|
||||||||||
Share Units Plan (1)
|
$
|
9
|
$
|
-
|
$
|
17
|
$
|
-
|
||
Stock option awards
|
2
|
3
|
5
|
5
|
||||||
Equity settled awards expense
|
$
|
11
|
$
|
3
|
$
|
22
|
$
|
5
|
||
Cash settled awards
|
||||||||||
Share Units Plan (1)
|
$
|
(7)
|
$
|
31
|
$
|
2
|
$
|
45
|
||
Voluntary Incentive Deferral Plan (2)
|
(5)
|
20
|
(4)
|
21
|
||||||
Cash settled awards expense (recovery)
|
$
|
(12)
|
$
|
51
|
(2)
|
66
|
||||
Total stock-based compensation expense (recovery)
|
$
|
(1)
|
$
|
54
|
$
|
20
|
$
|
71
|
||
Tax benefit recognized in income
|
$
|
-
|
$
|
15
|
$
|
5
|
$
|
19
|
||
(1)
|
Performance share unit (PSU) awards are granted under the Share Units Plan.
|
|||||||||
(2)
|
Deferred share unit (DSU) awards are granted under the Voluntary Incentive Deferral Plan.
|
Equity settled awards
|
Share Units Plan
|
Under the Share Units Plan, the Company grants performance share unit (PSU) awards.
|
PSU-ROIC awards vest from 0% to 200%, subject to the attainment of a return on invested capital (ROIC) performance condition (previously from 0% to 150% for PSUs-ROIC outstanding as at December 31, 2014) over the plan period. Payout of PSU-ROIC awards is conditional upon the attainment of a minimum share price.
|
PSU-TSR awards, introduced in 2015, vest from 0% to 200%, subject to the attainment of a total shareholder return (TSR) market condition over the plan period of three years based on the Company’s TSR relative to a Class I Railways peer group and components of the S&P/TSX 60 Index.
|
Equity settled PSUs are settled in common shares of the Company, subject to the attainment of their respective vesting conditions, by way of disbursement from the Share Trusts. The number of shares remitted to the participant upon settlement is equal to the number of PSUs awarded multiplied by their respective vesting factor less amounts withheld to satisfy the participant’s minimum statutory withholding tax requirement.
|
The settlement of PSUs, for senior and executive management employees, is conditional on compliance with the conditions of their benefit plans, award or employment agreements, including but not limited to non-compete, non-solicitation and non-disclosure of confidential information.
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
PSUs-ROIC (1)
|
PSUs-TSR (2)
|
DSUs (3)
|
||||||||||
Units
|
Weighted-
average
grant date
fair value
|
Units
|
Weighted-
average
grant date
fair value
|
Units
|
Weighted-
average
grant date
fair value
|
|||||||
In millions
|
In millions
|
In millions
|
||||||||||
Outstanding at December 31, 2014
|
0.9
|
$
|
71.05
|
-
|
N/A
|
1.7
|
$
|
76.29
|
||||
Granted
|
0.4
|
$
|
50.87
|
0.1
|
$
|
114.86
|
-
|
$
|
81.18
|
|||
Outstanding at June 30, 2015
|
1.3
|
$
|
64.32
|
0.1
|
$
|
114.86
|
1.7
|
$
|
76.44
|
|||
(1)
|
The grant date fair value of PSUs-ROIC granted in 2015 of $22 million is calculated using a lattice-based valuation model. As at June 30, 2015, total unrecognized compensation cost related to non-vested PSUs-ROIC outstanding was $30 million and is expected to be recognized over a weighted-average period of 1.7 years.
|
|||||||||||
(2)
|
The grant date fair value of PSUs-TSR granted in 2015 of $16 million is calculated using a Monte Carlo simulation model. As at June 30, 2015, the total unrecognized compensation cost related to non-vested PSUs-TSR outstanding was $11 million and is expected to be recognized over a weighted-average period of 2.1 years.
|
|||||||||||
(3)
|
The grant date fair value of DSUs granted in 2015 of $2 million is calculated using an intrinsic value model and represents deferrals of the annual incentive bonus payment and other eligible incentive payments. As at June 30, 2015, the total unrecognized compensation cost related to non-vested DSUs outstanding was $1 million. The remaining recognition period has not been quantified as it relates solely to the 25% Company grant, representing a minimal number of units. As at June 30, 2015, the aggregate intrinsic value of DSUs outstanding amounted to $127 million.
|
Stock option awards
|
Options outstanding
|
||||
Weighted-
|
||||
Number
|
average
|
|||
of options
|
exercise price
|
|||
In millions
|
||||
Outstanding at December 31, 2014 (1)
|
7.5
|
$
|
37.37
|
|
Granted (2)
|
0.8
|
$
|
84.49
|
|
Exercised
|
(0.4)
|
$
|
29.71
|
|
Outstanding at June 30, 2015 (1) (3) (4)
|
7.9
|
$
|
44.41
|
|
Exercisable at June 30, 2015 (1) (4)
|
5.6
|
$
|
35.14
|
|
(1)
|
Stock options with a US dollar exercise price have been translated into Canadian dollars using the foreign exchange rate in effect at the balance sheet date.
|
|||
(2)
|
The grant date fair value of options awarded in 2015 of $11 million ($13.21 per unit) is calculated using the Black-Scholes option-pricing model.
|
|||
(3)
|
As at June 30, 2015, total unrecognized compensation cost related to non-vested options outstanding was $12 million and is expected to be recognized over a weighted-average period of 2.1 years.
|
|||
(4)
|
As at June 30, 2015, substantially all stock options were in-the-money. The weighted-average term to expiration of outstanding options was 5.7 years and the weighted-average term to expiration of exercisable stock options was 4.6 years. As at June 30, 2015, the aggregate intrinsic value of in-the-money stock options outstanding amounted to $229 million and aggregate intrinsic value of stock options exercisable amounted to $207 million.
|
Cash settled awards
|
Number of units - In millions
|
PSUs-ROIC (1)
|
DSUs (2)
|
|||
Outstanding at December 31, 2014
|
1.6
|
0.5
|
|||
Settled
|
(0.9)
|
(0.1)
|
|||
Outstanding at June 30, 2015
|
0.7
|
0.4
|
|||
(1)
|
As at June 30, 2015, total unrecognized compensation cost related to non-vested PSUs-ROIC outstanding was $15 million and is expected to be recognized over a weighted-average period of 1.3 years. As at June 30, 2015 the PSU liability was $52 million ($157 million as at December 31, 2014).
|
||||
(2)
|
As at June 30, 2015, total unrecognized compensation cost related to non-vested DSUs outstanding was minimal. The remaining recognition period has not been quantified as it relates solely to the 25% Company grant and the dividends earned thereon, representing a minimal number of units. As at June 30, 2015 the DSU liability was $36 million ($40 million as at December 31, 2014).
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
9 - Accumulated other comprehensive loss
|
In millions
|
Foreign
currency
translation
adjustments
|
Pension
and other
postretirement
benefit plans
|
Derivative
instruments
|
Total
before tax
|
Income tax
recovery
(expense)
|
Total
net of tax
|
|||||||||||
Balance at March 31, 2015
|
$
|
(362)
|
$
|
(2,449)
|
$
|
7
|
$
|
(2,804)
|
$
|
603
|
$
|
(2,201)
|
|||||
Other comprehensive income (loss)
|
|||||||||||||||||
before reclassifications:
|
|||||||||||||||||
Foreign exchange loss on
|
|||||||||||||||||
translation of net investment in
|
|||||||||||||||||
foreign operations
|
(120)
|
(120)
|
-
|
(120)
|
|||||||||||||
Foreign exchange gain on
|
|||||||||||||||||
translation of US dollar-
|
|||||||||||||||||
denominated debt designated
|
|||||||||||||||||
as a hedge of the net investment
|
|||||||||||||||||
in U.S. subsidiaries (1)
|
102
|
102
|
(13)
|
89
|
|||||||||||||
Amounts reclassified from Accumulated
|
|||||||||||||||||
other comprehensive loss:
|
|||||||||||||||||
Amortization of net actuarial loss
|
52
|
52
|
(2)
|
(13)
|
(3)
|
39
|
|||||||||||
Amortization of prior service cost
|
2
|
2
|
(2)
|
(1)
|
(3)
|
1
|
|||||||||||
Other comprehensive income (loss)
|
(18)
|
54
|
-
|
36
|
(27)
|
9
|
|||||||||||
Balance at June 30, 2015
|
$
|
(380)
|
$
|
(2,395)
|
$
|
7
|
$
|
(2,768)
|
$
|
576
|
$
|
(2,192)
|
|||||
In millions
|
Foreign
currency
translation
adjustments
|
Pension
and other
postretirement
benefit plans
|
Derivative i
nstruments
|
Total
before tax
|
Income tax
recovery
(expense)
|
Total
net of tax
|
|||||||||||
Balance at December 31, 2014
|
$
|
(458)
|
$
|
(2,510)
|
$
|
7
|
$
|
(2,961)
|
$
|
534
|
$
|
(2,427)
|
|||||
Other comprehensive income (loss)
|
|||||||||||||||||
before reclassifications:
|
|||||||||||||||||
Foreign exchange gain on
|
|||||||||||||||||
translation of net investment in
|
|||||||||||||||||
foreign operations
|
622
|
622
|
-
|
622
|
|||||||||||||
Foreign exchange loss on
|
|||||||||||||||||
translation of US dollar-
|
|||||||||||||||||
denominated debt designated
|
|||||||||||||||||
as a hedge of the net investment
|
|||||||||||||||||
in U.S. subsidiaries (1)
|
(544)
|
(544)
|
72
|
(472)
|
|||||||||||||
Amounts reclassified from Accumulated
|
|||||||||||||||||
other comprehensive loss:
|
|||||||||||||||||
Amortization of net actuarial loss
|
112
|
112
|
(2)
|
(29)
|
(3)
|
83
|
|||||||||||
Amortization of prior service cost
|
3
|
3
|
(2)
|
(1)
|
(3)
|
2
|
|||||||||||
Other comprehensive income
|
78
|
115
|
-
|
193
|
42
|
235
|
|||||||||||
Balance at June 30, 2015
|
$
|
(380)
|
$
|
(2,395)
|
$
|
7
|
$
|
(2,768)
|
$
|
576
|
$
|
(2,192)
|
|||||
(1)
|
The Company designates US dollar-denominated debt of the parent company as a foreign currency hedge of its net investment in U.S. subsidiaries. As a result, from the dates of designation, foreign exchange gains and losses on translation of the Company’s US dollar-denominated debt are recorded in Accumulated other comprehensive loss, which minimizes volatility of earnings resulting from the conversion of US dollar-denominated debt into Canadian dollars.
|
||||||||||||||||
(2)
|
Reclassified to Labor and fringe benefits on the Consolidated Statement of Income and included in components of net periodic benefit cost. See Note 7 - Pensions and other postretirement benefits.
|
||||||||||||||||
(3)
|
Included in Income tax expense on the Consolidated Statement of Income.
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
In millions
|
Foreign
currency
translation
adjustments
|
Pension
and other
postretirement
benefit plans
|
Derivative
instruments
|
Total
before tax
|
Income tax
recovery
(expense)
|
Total
net of tax
|
|||||||||||
Balance at March 31, 2014
|
$
|
(508)
|
$
|
(1,482)
|
$
|
8
|
$
|
(1,982)
|
$
|
214
|
$
|
(1,768)
|
|||||
Other comprehensive income (loss)
|
|||||||||||||||||
before reclassifications:
|
|||||||||||||||||
Foreign exchange loss on
|
|||||||||||||||||
translation of net investment in
|
|||||||||||||||||
foreign operations
|
(257)
|
(257)
|
-
|
(257)
|
|||||||||||||
Foreign exchange gain on
|
|||||||||||||||||
translation of US dollar-
|
|||||||||||||||||
denominated debt designated
|
|||||||||||||||||
as a hedge of the net investment
|
|||||||||||||||||
in U.S. subsidiaries (1)
|
227
|
227
|
(31)
|
196
|
|||||||||||||
Amounts reclassified from Accumulated
|
|||||||||||||||||
other comprehensive loss:
|
|||||||||||||||||
Amortization of net actuarial loss
|
29
|
29
|
(2)
|
(7)
|
(3)
|
22
|
|||||||||||
Amortization of prior service cost
|
1
|
1
|
(2)
|
-
|
1
|
||||||||||||
Other comprehensive income (loss)
|
(30)
|
30
|
-
|
-
|
(38)
|
(38)
|
|||||||||||
Balance at June 30, 2014
|
$
|
(538)
|
$
|
(1,452)
|
$
|
8
|
$
|
(1,982)
|
$
|
176
|
$
|
(1,806)
|
|||||
In millions
|
Foreign
currency
translation
adjustments
|
Pension
and other
postretirement
benefit plans
|
Derivative
instruments
|
Total
before tax
|
Income tax
recovery
(expense)
|
Total
net of tax
|
|||||||||||
Balance at December 31, 2013
|
$
|
(533)
|
$
|
(1,515)
|
$
|
8
|
$
|
(2,040)
|
$
|
190
|
$
|
(1,850)
|
|||||
Other comprehensive income (loss)
|
|||||||||||||||||
before reclassifications:
|
|||||||||||||||||
Foreign exchange gain on
|
|||||||||||||||||
translation of net investment in
|
|||||||||||||||||
foreign operations
|
19
|
19
|
-
|
19
|
|||||||||||||
Foreign exchange loss on
|
|||||||||||||||||
translation of US dollar-
|
|||||||||||||||||
denominated debt designated
|
|||||||||||||||||
as a hedge of the net investment
|
|||||||||||||||||
in U.S. subsidiaries (1)
|
(24)
|
(24)
|
1
|
(23)
|
|||||||||||||
Amounts reclassified from Accumulated
|
|||||||||||||||||
other comprehensive loss:
|
|||||||||||||||||
Amortization of net actuarial loss
|
60
|
60
|
(2)
|
(15)
|
(3)
|
45
|
|||||||||||
Amortization of prior service cost
|
3
|
3
|
(2)
|
-
|
3
|
||||||||||||
Other comprehensive income (loss)
|
(5)
|
63
|
-
|
58
|
(14)
|
44
|
|||||||||||
Balance at June 30, 2014
|
$
|
(538)
|
$
|
(1,452)
|
$
|
8
|
$
|
(1,982)
|
$
|
176
|
$
|
(1,806)
|
|||||
(1)
|
The Company designates US dollar-denominated debt of the parent company as a foreign currency hedge of its net investment in U.S. subsidiaries. As a result, from the dates of designation, foreign exchange gains and losses on translation of the Company’s US dollar-denominated debt are recorded in Accumulated other comprehensive loss, which minimizes volatility of earnings resulting from the conversion of US dollar-denominated debt into Canadian dollars.
|
||||||||||||||||
(2)
|
Reclassified to Labor and fringe benefits on the Consolidated Statement of Income and included in components of net periodic benefit cost. See Note 7 - Pensions and other postretirement benefits.
|
||||||||||||||||
(3)
|
Included in Income tax expense on the Consolidated Statement of Income.
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
10 - Major commitments and contingencies
|
Contingencies
|
As at June 30, 2015, the Company had aggregate reserves for personal injury and other claims of $305 million, of which $49 million was recorded as a current liability ($298 million as at December 31, 2014, of which $48 million was recorded as a current liability).
|
Environmental matters
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
The Company’s provision for specific environmental sites is undiscounted and includes costs for remediation and restoration of sites, as well as monitoring costs. Costs related to any unknown existing or future contamination will be accrued in the period in which they become probable and reasonably estimable.
|
As at June 30, 2015, the Company had aggregate accruals for environmental costs of $133 million, of which $67 million was recorded as a current liability ($114 million as at December 31, 2014, of which $45 million was recorded as a current liability). The Company anticipates that the majority of the liability at June 30, 2015 will be paid out over the next five years. However, some costs may be paid out over a longer period. Based on the information currently available, the Company considers its accruals to be adequate.
|
A list of indemnifications found in various types of contracts with third parties is provided in Note 16 – Major commitments and contingencies to the Company’s 2014 Annual Consolidated Financial Statements.
|
Guarantees
|
(a) Guarantee of residual values of operating leases
|
(b) Other guarantees
|
Canadian National Railway Company
|
Notes to Unaudited Consolidated Financial Statements
|
11 - Financial instruments
|
The Company uses derivative financial instruments from time to time in the management of its foreign currency and interest rate exposures. The Company has limited involvement with derivative financial instruments in the management of its risks and does not hold or issue them for trading or speculative purposes. As at June 30, 2015, the Company had outstanding foreign exchange forward contracts with a notional value of US$350 million (US$350 million as at December 31, 2014). Changes in the fair value of forward contracts, resulting from changes in foreign exchange rates, are recognized in Other income in the Consolidated Statement of Income as they occur. For the three and six months ended June 30, 2015, the Company recorded a pre-tax loss of $7 million and a pre-tax gain of $29 million, respectively, related to foreign exchange forward contracts, compared to nil and a pre-tax gain of $10 million, respectively, for the same periods in 2014. As at June 30, 2015, the Company recorded an unrealized gain of $38 million ($9 million as at December 31, 2014) related to foreign exchange forward contracts in Other current assets in the Consolidated Balance Sheet.
|
Fair value of financial instruments
|
Canadian National Railway Company
|
Selected Railroad Statistics - unaudited
|
Three months ended June 30
|
Six months ended June 30
|
|||||
2015
|
2014
|
2015
|
2014
|
|||
Financial measures
|
||||||
Key financial performance indicators
|
||||||
Total revenues ($ millions)
|
3,125
|
3,116
|
6,223
|
5,809
|
||
Rail freight revenues ($ millions)
|
2,927
|
2,942
|
5,907
|
5,520
|
||
Operating income ($ millions)
|
1,362
|
1,258
|
2,425
|
2,078
|
||
Adjusted diluted earnings per share ($) (1)
|
1.15
|
1.03
|
2.01
|
1.68
|
||
Free cash flow ($ millions) (1)
|
530
|
776
|
1,051
|
1,270
|
||
Property additions ($ millions)
|
659
|
482
|
1,127
|
730
|
||
Share repurchases ($ millions)
|
404
|
365
|
833
|
730
|
||
Dividends per share ($)
|
0.3125
|
0.2500
|
0.6250
|
0.5000
|
||
Financial position
|
||||||
Total assets ($ millions)
|
33,605
|
30,634
|
33,605
|
30,634
|
||
Total liabilities ($ millions)
|
19,651
|
17,291
|
19,651
|
17,291
|
||
Shareholders' equity ($ millions)
|
13,954
|
13,343
|
13,954
|
13,343
|
||
Financial ratio
|
||||||
Operating ratio (%)
|
56.4
|
59.6
|
61.0
|
64.2
|
||
Operational measures (2)
|
||||||
Statistical operating data
|
||||||
Gross ton miles (GTM) (millions)
|
110,709
|
116,243
|
222,099
|
217,719
|
||
Revenue ton miles (RTM) (millions)
|
55,713
|
60,081
|
112,842
|
113,415
|
||
Carloads (thousands)
|
1,414
|
1,463
|
2,767
|
2,702
|
||
Route miles (includes Canada and the U.S.)
|
19,500
|
19,800
|
19,500
|
19,800
|
||
Employees (end of period)
|
24,761
|
24,875
|
24,761
|
24,875
|
||
Employees (average for the period)
|
25,177
|
24,565
|
25,206
|
24,161
|
||
Key operating measures
|
||||||
Rail freight revenue per RTM (cents)
|
5.25
|
4.90
|
5.23
|
4.87
|
||
Rail freight revenue per carload ($)
|
2,070
|
2,011
|
2,135
|
2,043
|
||
GTMs per average number of employees (thousands)
|
4,397
|
4,732
|
8,811
|
9,011
|
||
Operating expenses per GTM (cents)
|
1.59
|
1.60
|
1.71
|
1.71
|
||
Labor and fringe benefits expense per GTM (cents)
|
0.49
|
0.48
|
0.54
|
0.53
|
||
Diesel fuel consumed (US gallons in millions)
|
106.0
|
112.3
|
220.3
|
219.2
|
||
Average fuel price ($ per US gallon)
|
2.73
|
3.84
|
2.79
|
3.90
|
||
GTMs per US gallon of fuel consumed
|
1,044
|
1,035
|
1,008
|
993
|
||
Terminal dwell (hours)
|
14.6
|
15.4
|
15.7
|
17.4
|
||
Train velocity (miles per hour)
|
26.2
|
26.2
|
25.5
|
25.1
|
||
Safety indicators (3)
|
||||||
Injury frequency rate (per 200,000 person hours)
|
1.46
|
1.47
|
1.55
|
1.78
|
||
Accident rate (per million train miles)
|
2.49
|
2.42
|
2.48
|
2.40
|
||
(1)
|
See supplementary schedule entitled Non-GAAP Measures for an explanation of this non-GAAP measure.
|
|||||
(2)
|
Statistical operating data, key operating measures and safety indicators are based on estimated data available at such time and are subject to change as more complete information becomes available, as such, certain of the comparative data have been restated. Definitions of these indicators are provided on our website, www.cn.ca/glossary.
|
|||||
(3)
|
Based on Federal Railroad Administration (FRA) reporting criteria.
|
Canadian National Railway Company
|
Supplementary Information - unaudited
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
2015
|
2014
|
% Change
Fav (Unfav)
|
% Change at
constant
currency
Fav (Unfav) (1)
|
2015
|
2014
|
% Change
Fav (Unfav)
|
% Change at
constant
currency
Fav (Unfav) (1)
|
||||
Revenues (millions of dollars)
|
|||||||||||
Petroleum and chemicals
|
586
|
564
|
4%
|
(4%)
|
1,229
|
1,132
|
9%
|
-
|
|||
Metals and minerals
|
351
|
370
|
(5%)
|
(14%)
|
728
|
678
|
7%
|
(2%)
|
|||
Forest products
|
424
|
393
|
8%
|
(1%)
|
842
|
732
|
15%
|
6%
|
|||
Coal
|
148
|
201
|
(26%)
|
(32%)
|
307
|
383
|
(20%)
|
(26%)
|
|||
Grain and fertilizers
|
489
|
526
|
(7%)
|
(12%)
|
1,024
|
957
|
7%
|
1%
|
|||
Intermodal
|
728
|
716
|
2%
|
(3%)
|
1,417
|
1,337
|
6%
|
2%
|
|||
Automotive
|
201
|
172
|
17%
|
7%
|
360
|
301
|
20%
|
9%
|
|||
Total rail freight revenues
|
2,927
|
2,942
|
(1%)
|
(7%)
|
5,907
|
5,520
|
7%
|
-
|
|||
Other revenues
|
198
|
174
|
14%
|
5%
|
316
|
289
|
9%
|
1%
|
|||
Total revenues
|
3,125
|
3,116
|
-
|
(7%)
|
6,223
|
5,809
|
7%
|
-
|
|||
Revenue ton miles (millions)
|
|||||||||||
Petroleum and chemicals
|
12,425
|
12,779
|
(3%)
|
(3%)
|
26,042
|
25,658
|
1%
|
1%
|
|||
Metals and minerals
|
5,430
|
6,018
|
(10%)
|
(10%)
|
11,141
|
11,027
|
1%
|
1%
|
|||
Forest products
|
7,605
|
7,582
|
-
|
-
|
14,847
|
14,137
|
5%
|
5%
|
|||
Coal
|
3,916
|
5,733
|
(32%)
|
(32%)
|
8,126
|
11,027
|
(26%)
|
(26%)
|
|||
Grain and fertilizers
|
11,783
|
14,073
|
(16%)
|
(16%)
|
24,727
|
25,386
|
(3%)
|
(3%)
|
|||
Intermodal
|
13,493
|
13,048
|
3%
|
3%
|
26,086
|
24,709
|
6%
|
6%
|
|||
Automotive
|
1,061
|
848
|
25%
|
25%
|
1,873
|
1,471
|
27%
|
27%
|
|||
Total revenue ton miles
|
55,713
|
60,081
|
(7%)
|
(7%)
|
112,842
|
113,415
|
(1%)
|
(1%)
|
|||
Rail freight revenue / RTM (cents)
|
|||||||||||
Petroleum and chemicals
|
4.72
|
4.41
|
7%
|
(1%)
|
4.72
|
4.41
|
7%
|
(1%)
|
|||
Metals and minerals
|
6.46
|
6.15
|
5%
|
(4%)
|
6.53
|
6.15
|
6%
|
(3%)
|
|||
Forest products
|
5.58
|
5.18
|
8%
|
(1%)
|
5.67
|
5.18
|
9%
|
1%
|
|||
Coal
|
3.78
|
3.51
|
8%
|
(1%)
|
3.78
|
3.47
|
9%
|
1%
|
|||
Grain and fertilizers
|
4.15
|
3.74
|
11%
|
5%
|
4.14
|
3.77
|
10%
|
4%
|
|||
Intermodal
|
5.40
|
5.49
|
(2%)
|
(6%)
|
5.43
|
5.41
|
-
|
(4%)
|
|||
Automotive
|
18.94
|
20.28
|
(7%)
|
(14%)
|
19.22
|
20.46
|
(6%)
|
(14%)
|
|||
Total rail freight revenue per RTM
|
5.25
|
4.90
|
7%
|
-
|
5.23
|
4.87
|
7%
|
-
|
|||
Carloads (thousands)
|
|||||||||||
Petroleum and chemicals
|
158
|
160
|
(1%)
|
(1%)
|
322
|
321
|
-
|
-
|
|||
Metals and minerals
|
243
|
267
|
(9%)
|
(9%)
|
480
|
474
|
1%
|
1%
|
|||
Forest products
|
112
|
113
|
(1%)
|
(1%)
|
221
|
213
|
4%
|
4%
|
|||
Coal
|
105
|
141
|
(26%)
|
(26%)
|
220
|
266
|
(17%)
|
(17%)
|
|||
Grain and fertilizers
|
147
|
172
|