Condensed Consolidating Financial Information

Pursuant to Securities and Exchange Commission (“SEC”) Regulation S-X Rule 3-10 “Financial statements of guarantors and issuers of guaranteed securities registered or being registered”, the Company is required to provide condensed consolidating financial information for issuers of certain of its senior notes that are guaranteed.

As of September 30, 2017, KCS had outstanding $2,093.5 million senior notes due through 2045. The senior notes are unsecured obligations of KCS, and are also jointly and severally and fully and unconditionally guaranteed on an unsecured senior basis by Kansas City Southern Railway Company (“KCSR”) and certain wholly-owned domestic subsidiaries of KCS. As a result, the Company is providing the following condensed consolidating financial information (in millions).

Condensed Consolidating Statements of Comprehensive Income - KCS Notes



	Three Months Ended September 30, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	316.1		$	344.9		$	(4.4	)	$	656.6
Operating expenses	0.8			221.6			204.8			(4.4		)	422.8
Operating income (loss)	(0.8		)	94.5			140.1			—			233.8
Equity in net earnings of affiliates	130.2			2.5			2.2			(132.1		)	2.8
Interest expense	(20.3		)	(17.7		)	(8.8		)	21.6			(25.2		)
Foreign exchange gain	—			—			0.8			—			0.8
Other income (expense), net	20.8			(0.3		)	0.7			(21.5		)	(0.3		)
Income before income taxes	129.9			79.0			135.0			(132.0		)	211.9
Income tax expense	0.6			26.4			55.0			—			82.0
Net income	129.3			52.6			80.0			(132.0		)	129.9
Less: Net income attributable to noncontrolling interest	—			0.6			—			—			0.6
Net income attributable to Kansas City Southern and subsidiaries	129.3			52.0			80.0			(132.0		)	129.3
Other comprehensive loss	(0.7		)	—			(0.3		)	0.3			(0.7		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	128.6		$	52.0		$	79.7		$	(131.7	)	$	128.6

Condensed Consolidating Statements of Comprehensive Income - KCS Notes—(Continued)



	Three Months Ended September 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	289.9		$	319.0		$	(4.4	)	$	604.5
Operating expenses	0.9			214.7			193.5			(4.4		)	404.7
Operating income (loss)	(0.9		)	75.2			125.5			—			199.8
Equity in net earnings of affiliates	119.1			1.7			3.0			(120.3		)	3.5
Interest expense	(21.7		)	(20.6		)	(16.7		)	33.8			(25.2		)
Foreign exchange loss	—			—			(19.8		)	—			(19.8		)
Other income (expense), net	26.3			(0.1		)	7.1			(33.3		)	—
Income before income taxes	122.8			56.2			99.1			(119.8		)	158.3
Income tax expense	2.2			19.9			15.2			—			37.3
Net income	120.6			36.3			83.9			(119.8		)	121.0
Less: Net income attributable to noncontrolling interest	—			0.4			—			—			0.4
Net income attributable to Kansas City Southern and subsidiaries	120.6			35.9			83.9			(119.8		)	120.6
Other comprehensive loss	(0.3		)	—			(0.4		)	0.4			(0.3		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	120.3		$	35.9		$	83.5		$	(119.4	)	$	120.3



	Nine Months Ended September 30, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	924.4		$	1,011.2		$	(13.1	)	$	1,922.5
Operating expenses	4.9			661.4			585.5			(13.1		)	1,238.7
Operating income (loss)	(4.9		)	263.0			425.7			—			683.8
Equity in net earnings of affiliates	410.8			5.3			8.2			(414.6		)	9.7
Interest expense	(61.0		)	(54.6		)	(27.1		)	67.8			(74.9		)
Foreign exchange gain	—			—			61.8			—			61.8
Other income, net	66.7			0.5			1.3			(67.8		)	0.7
Income before income taxes	411.6			214.2			469.9			(414.6		)	681.1
Income tax expense	1.3			78.1			190.2			—			269.6
Net income	410.3			136.1			279.7			(414.6		)	411.5
Less: Net income attributable to noncontrolling interest	—			1.2			—			—			1.2
Net income attributable to Kansas City Southern and subsidiaries	410.3			134.9			279.7			(414.6		)	410.3
Other comprehensive income (loss)	(1.7		)	—			1.8			(1.8		)	(1.7		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	408.6		$	134.9		$	281.5		$	(416.4	)	$	408.6

Condensed Consolidating Statements of Comprehensive Income - KCS Notes—(Continued)



	Nine Months Ended September 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	817.5		$	931.6		$	(13.4	)	$	1,735.7
Operating expenses	3.7			585.1			552.7			(13.4		)	1,128.1
Operating income (loss)	(3.7		)	232.4			378.9			—			607.6
Equity in net earnings of affiliates	336.3			4.7			9.0			(339.6		)	10.4
Interest expense	(61.1		)	(63.2		)	(46.6		)	97.7			(73.2		)
Foreign exchange loss	—			—			(47.3		)	—			(47.3		)
Other income, net	79.1			—			16.9			(96.5		)	(0.5		)
Income before income taxes	350.6			173.9			310.9			(338.4		)	497.0
Income tax expense	2.1			65.9			79.4			—			147.4
Net income	348.5			108.0			231.5			(338.4		)	349.6
Less: Net income attributable to noncontrolling interest	—			1.1			—			—			1.1
Net income attributable to Kansas City Southern and subsidiaries	348.5			106.9			231.5			(338.4		)	348.5
Other comprehensive loss	(1.0		)	—			(1.7		)	1.7			(1.0		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	347.5		$	106.9		$	229.8		$	(336.7	)	$	347.5

Condensed Consolidating Balance Sheets - KCS Notes



	September 30, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated KCS
Assets:
Current assets	$	29.3	$	250.2	$	398.7	$	(37.7	)	$	640.5
Investments	—		3.9		48.0		—			51.9
Investments in consolidated subsidiaries	3,906.9		498.1		—		(4,405.0		)	—
Property and equipment (including concession assets), net	—		4,414.1		3,924.1		(2.6		)	8,335.6
Other assets	2,525.2		48.7		252.7		(2,754.3		)	72.3
Total assets	$	6,461.4	$	5,215.0	$	4,623.5	$	(7,199.6	)	$	9,100.3
Liabilities and equity:
Current liabilities	$	257.2	$	475.4	$	231.4	$	(39.2	)	$	924.8
Long-term debt	2,066.2		1,883.7		1,042.8		(2,754.3		)	2,238.4
Deferred income taxes	27.0		1,149.2		256.9		(0.8		)	1,432.3
Other liabilities	9.0		72.7		16.7		—			98.4
Stockholders’ equity	4,102.0		1,318.2		3,075.7		(4,405.3		)	4,090.6
Noncontrolling interest	—		315.8		—		—			315.8
Total liabilities and equity	$	6,461.4	$	5,215.0	$	4,623.5	$	(7,199.6	)	$	9,100.3

Condensed Consolidating Balance Sheets - KCS Notes—(Continued)



	December 31, 2016
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated KCS
Assets:
Current assets	$	18.3	$	275.4	$	389.6	$	(35.3	)	$	648.0
Investments	—		3.9		29.0		—			32.9
Investments in consolidated subsidiaries	3,497.7		493.7		—		(3,991.4		)	—
Property and equipment (including concession assets), net	—		4,203.6		3,868.8		(2.7		)	8,069.7
Other assets	2,767.9		43.0		252.6		(2,996.6		)	66.9
Total assets	$	6,283.9	$	5,019.6	$	4,540.0	$	(7,026.0	)	$	8,817.5
Liabilities and equity:
Current liabilities	$	87.3	$	432.8	$	261.0	$	(36.7	)	$	744.4
Long-term debt	2,064.3		1,928.9		1,274.9		(2,996.6		)	2,271.5
Deferred income taxes	26.9		1,075.3		188.0		(0.9		)	1,289.3
Other liabilities	4.0		86.3		17.5		—			107.8
Stockholders’ equity	4,101.4		1,181.7		2,798.6		(3,991.8		)	4,089.9
Noncontrolling interest	—		314.6		—		—			314.6
Total liabilities and equity	$	6,283.9	$	5,019.6	$	4,540.0	$	(7,026.0	)	$	8,817.5

Condensed Consolidating Statements of Cash Flows - KCS Notes



	Nine Months Ended September 30, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Operating activities:
Net cash provided	$	215.1		$	413.9		$	109.7		$	(5.0	)	$	733.7
Investing activities:
Capital expenditures	—			(292.9		)	(154.0		)	—			(446.9		)
Purchase or replacement of equipment under operating leases	—			(42.6		)	—			—			(42.6		)
Property investments in MSLLC	—			—			(23.7		)	—			(23.7		)
Investments in and advances to affiliates	(0.5		)	(0.5		)	(20.3		)	1.0			(20.3		)
Proceeds from repayment of loans to affiliates	9,814.6			—			—			(9,814.6		)	—
Loans to affiliates	(9,772.2		)	—			—			9,772.2			—
Proceeds from disposal of property	—			5.2			1.4			—			6.6
Other investing activities	—			(16.5		)	1.4			—			(15.1		)
Net cash provided (used)	41.9			(347.3		)	(195.2		)	(41.4		)	(542.0		)
Financing activities:
Proceeds from short-term borrowings	9,772.2			—			—			—			9,772.2
Repayment of short-term borrowings	(9,600.9		)	—			—			—			(9,600.9		)
Repayment of long-term debt	—			(2.7		)	(17.5		)	—			(20.2		)
Dividends paid	(105.1		)	—			(5.0		)	5.0			(105.1		)
Shares repurchased	(320.4		)	—			—			—			(320.4		)
Proceeds from loans from affiliates	—			9,772.2			—			(9,772.2		)	—
Repayment of loans from affiliates	—			(9,814.6		)	—			9,814.6			—
Contribution from affiliates	—			0.5			0.5			(1.0		)	—
Other financing activities	0.5			—			—			—			0.5
Net cash used	(253.7		)	(44.6		)	(22.0		)	46.4			(273.9		)
Cash and cash equivalents:
Net increase (decrease)	3.3			22.0			(107.5		)	—			(82.2		)
At beginning of year	0.2			32.6			137.8			—			170.6
At end of period	$	3.5		$	54.6		$	30.3		$	—		$	88.4

Condensed Consolidating Statements of Cash Flows - KCS Notes—(Continued)



	Nine Months Ended September 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Operating activities:
Net cash provided	$	178.2		$	380.8		$	288.5		$	(163.9	)	$	683.6
Investing activities:
Capital expenditures	—			(269.5		)	(135.6		)	—			(405.1		)
Purchase or replacement of equipment under operating leases	—			(26.6		)	—			—			(26.6		)
Property investments in MSLLC	—			—			(31.2		)	—			(31.2		)
Investments in and advances to affiliates	(103.4		)	(6.5		)	(0.9		)	109.9			(0.9		)
Proceeds from repayment of loans to affiliates	6,743.5			—			—			(6,743.5		)	—
Loans to affiliates	(6,742.5		)	—			—			6,742.5			—
Proceeds from disposal of property	—			1.4			2.3			(0.1		)	3.6
Other investing activities	—			(10.4		)	4.5			0.1			(5.8		)
Net cash used	(102.4		)	(311.6		)	(160.9		)	108.9			(466.0		)
Financing activities:
Proceeds from short-term borrowings	6,499.0			243.5			—			(243.5		)	6,499.0
Repayment of short-term borrowings	(6,579.3		)	—			—			—			(6,579.3		)
Proceeds from issuance of long-term debt	248.7			—			—			—			248.7
Repayment of long-term debt	—			(2.6		)	(18.2		)	—			(20.8		)
Dividends paid	(107.2		)	—			(162.2		)	162.2			(107.2		)
Shares repurchased	(99.8		)	—			—			—			(99.8		)
Proceeds from loans from affiliates	—			6,499.0			—			(6,499.0		)	—
Repayment of loans from affiliates	—			(6,743.5		)	—			6,743.5			—
Contribution from affiliates	—			103.1			6.8			(109.9		)	—
Other financing activities	(1.5		)	(0.1		)	(1.8		)	1.7			(1.7		)
Net cash provided (used)	(40.1		)	99.4			(175.4		)	55.0			(61.1		)
Cash and cash equivalents:
Net increase (decrease)	35.7			168.6			(47.8		)	—			156.5
At beginning of year	0.2			10.2			126.2			—			136.6
At end of period	$	35.9		$	178.8		$	78.4		$	—		$	293.1

As of September 30, 2017, KCSR had outstanding $2.9 million principal amount of senior notes due through 2045. The senior notes 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. As a result, the Company is providing the following condensed consolidating financial information (in millions).

Condensed Consolidating Statements of Comprehensive Income - KCSR Notes



	Three Months Ended September 30, 2017
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	310.7		$	9.9	$	344.9		$	(8.9	)	$	656.6
Operating expenses	0.8			216.5			9.6		204.8			(8.9		)	422.8
Operating income (loss)	(0.8		)	94.2			0.3		140.1			—			233.8
Equity in net earnings (losses) of affiliates	130.2			(0.3		)	2.1		2.2			(131.4		)	2.8
Interest expense	(20.3		)	(17.7		)	—		(8.8		)	21.6			(25.2		)
Foreign exchange gain	—			—			—		0.8			—			0.8
Other income (expense), net	20.8			(0.3		)	—		0.7			(21.5		)	(0.3		)
Income before income taxes	129.9			75.9			2.4		135.0			(131.3		)	211.9
Income tax expense	0.6			25.4			1.0		55.0			—			82.0
Net income	129.3			50.5			1.4		80.0			(131.3		)	129.9
Less: Net income attributable to noncontrolling interest	—			—			0.6		—			—			0.6
Net income attributable to Kansas City Southern and subsidiaries	129.3			50.5			0.8		80.0			(131.3		)	129.3
Other comprehensive loss	(0.7		)	—			—		(0.3		)	0.3			(0.7		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	128.6		$	50.5		$	0.8	$	79.7		$	(131.0	)	$	128.6



	Three Months Ended September 30, 2016
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	283.5		$	11.8	$	319.0		$	(9.8	)	$	604.5
Operating expenses	0.9			210.1			10.0		193.5			(9.8		)	404.7
Operating income (loss)	(0.9		)	73.4			1.8		125.5			—			199.8
Equity in net earnings (losses) of affiliates	119.1			(0.3		)	1.2		3.0			(119.5		)	3.5
Interest expense	(21.7		)	(20.6		)	—		(16.7		)	33.8			(25.2		)
Foreign exchange loss	—			—			—		(19.8		)	—			(19.8		)
Other income (expense), net	26.3			(0.1		)	—		7.1			(33.3		)	—
Income before income taxes	122.8			52.4			3.0		99.1			(119.0		)	158.3
Income tax expense	2.2			18.8			1.1		15.2			—			37.3
Net income	120.6			33.6			1.9		83.9			(119.0		)	121.0
Less: Net income attributable to noncontrolling interest	—			—			0.4		—			—			0.4
Net income attributable to Kansas City Southern and subsidiaries	120.6			33.6			1.5		83.9			(119.0		)	120.6
Other comprehensive loss	(0.3		)	—			—		(0.4		)	0.4			(0.3		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	120.3		$	33.6		$	1.5	$	83.5		$	(118.6	)	$	120.3

Condensed Consolidating Statements of Comprehensive Income - KCSR Notes—(Continued)



	Nine Months Ended September 30, 2017
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	906.4		$	33.0	$	1,011.2		$	(28.1	)	$	1,922.5
Operating expenses	4.9			647.0			29.4		585.5			(28.1		)	1,238.7
Operating income (loss)	(4.9		)	259.4			3.6		425.7			—			683.8
Equity in net earnings (losses) of affiliates	410.8			(0.6		)	3.9		8.2			(412.6		)	9.7
Interest expense	(61.0		)	(54.6		)	—		(27.1		)	67.8			(74.9		)
Foreign exchange gain	—			—			—		61.8			—			61.8
Other income, net	66.7			0.5			—		1.3			(67.8		)	0.7
Income before income taxes	411.6			204.7			7.5		469.9			(412.6		)	681.1
Income tax expense	1.3			75.2			2.9		190.2			—			269.6
Net income	410.3			129.5			4.6		279.7			(412.6		)	411.5
Less: Net income attributable to noncontrolling interest	—			—			1.2		—			—			1.2
Net income attributable to Kansas City Southern and subsidiaries	410.3			129.5			3.4		279.7			(412.6		)	410.3
Other comprehensive income (loss)	(1.7		)	—			—		1.8			(1.8		)	(1.7		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	408.6		$	129.5		$	3.4	$	281.5		$	(414.4	)	$	408.6



	Nine Months Ended September 30, 2016
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	798.8		$	33.9	$	931.6		$	(28.6	)	$	1,735.7
Operating expenses	3.7			571.6			28.7		552.7			(28.6		)	1,128.1
Operating income (loss)	(3.7		)	227.2			5.2		378.9			—			607.6
Equity in net earnings of affiliates	336.3			—			3.3		9.0			(338.2		)	10.4
Interest expense	(61.1		)	(63.2		)	—		(46.6		)	97.7			(73.2		)
Foreign exchange loss	—			—			—		(47.3		)	—			(47.3		)
Other income, net	79.1			—			—		16.9			(96.5		)	(0.5		)
Income before income taxes	350.6			164.0			8.5		310.9			(337.0		)	497.0
Income tax expense	2.1			62.4			3.5		79.4			—			147.4
Net income	348.5			101.6			5.0		231.5			(337.0		)	349.6
Less: Net income attributable to noncontrolling interest	—			—			1.1		—			—			1.1
Net income attributable to Kansas City Southern and subsidiaries	348.5			101.6			3.9		231.5			(337.0		)	348.5
Other comprehensive loss	(1.0		)	—			—		(1.7		)	1.7			(1.0		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	347.5		$	101.6		$	3.9	$	229.8		$	(335.3	)	$	347.5

Condensed Consolidating Balance Sheets - KCSR Notes



	September 30, 2017
	Parent		KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated KCS
Assets:
Current assets	$	29.3	$	245.5		$	4.7	$	398.7	$	(37.7	)	$	640.5
Investments	—		3.9			—		48.0		—			51.9
Investments in consolidated subsidiaries	3,906.9		(11.7		)	496.0		—		(4,391.2		)	—
Property and equipment (including concession assets), net	—		4,240.6			173.5		3,924.1		(2.6		)	8,335.6
Other assets	2,525.2		48.7			—		252.7		(2,754.3		)	72.3
Total assets	$	6,461.4	$	4,527.0		$	674.2	$	4,623.5	$	(7,185.8	)	$	9,100.3
Liabilities and equity:
Current liabilities	$	257.2	$	392.4		$	83.0	$	231.4	$	(39.2	)	$	924.8
Long-term debt	2,066.2		1,883.7			—		1,042.8		(2,754.3		)	2,238.4
Deferred income taxes	27.0		1,008.9			140.3		256.9		(0.8		)	1,432.3
Other liabilities	9.0		72.6			0.1		16.7		—			98.4
Stockholders’ equity	4,102.0		1,169.4			135.0		3,075.7		(4,391.5		)	4,090.6
Noncontrolling interest	—		—			315.8		—		—			315.8
Total liabilities and equity	$	6,461.4	$	4,527.0		$	674.2	$	4,623.5	$	(7,185.8	)	$	9,100.3



	December 31, 2016
	Parent		KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated KCS
Assets:
Current assets	$	18.3	$	271.8		$	4.6	$	389.6	$	(36.3	)	$	648.0
Investments	—		3.9			—		29.0		—			32.9
Investments in consolidated subsidiaries	3,497.7		(9.8		)	491.7		—		(3,979.6		)	—
Property and equipment (including concession assets), net	—		4,024.5			179.1		3,868.8		(2.7		)	8,069.7
Other assets	2,767.9		43.0			—		252.6		(2,996.6		)	66.9
Total assets	$	6,283.9	$	4,333.4		$	675.4	$	4,540.0	$	(7,015.2	)	$	8,817.5
Liabilities and equity:
Current liabilities	$	87.3	$	342.1		$	91.7	$	261.0	$	(37.7	)	$	744.4
Long-term debt	2,064.3		1,928.8			0.1		1,274.9		(2,996.6		)	2,271.5
Deferred income taxes	26.9		937.7			137.6		188.0		(0.9		)	1,289.3
Other liabilities	4.0		86.2			0.1		17.5		—			107.8
Stockholders’ equity	4,101.4		1,038.6			131.3		2,798.6		(3,980.0		)	4,089.9
Noncontrolling interest	—		—			314.6		—		—			314.6
Total liabilities and equity	$	6,283.9	$	4,333.4		$	675.4	$	4,540.0	$	(7,015.2	)	$	8,817.5

Condensed Consolidating Statements of Cash Flows - KCSR Notes



	Nine Months Ended September 30, 2017
	Parent			KCSR			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Operating activities:
Net cash provided	$	215.1		$	413.5		$	0.4		$	109.7		$	(5.0	)	$	733.7
Investing activities:
Capital expenditures	—			(292.6		)	(0.3		)	(154.0		)	—			(446.9		)
Purchase or replacement of equipment under operating leases	—			(42.6		)	—			—			—			(42.6		)
Property investments in MSLLC	—			—			—			(23.7		)	—			(23.7		)
Investments in and advances to affiliates	(0.5		)	—			(0.5		)	(20.3		)	1.0			(20.3		)
Proceeds from repayment of loans to affiliates	9,814.6			—			—			—			(9,814.6		)	—
Loans to affiliates	(9,772.2		)	—			—			—			9,772.2			—
Proceeds from disposal of property	—			5.2			—			1.4			—			6.6
Other investing activities	—			(16.5		)	—			1.4			—			(15.1		)
Net cash provided (used)	41.9			(346.5		)	(0.8		)	(195.2		)	(41.4		)	(542.0		)
Financing activities:
Proceeds from short-term borrowings	9,772.2			—			—			—			—			9,772.2
Repayment of short-term borrowings	(9,600.9		)	—			—			—			—			(9,600.9		)
Repayment of long-term debt	—			(2.6		)	(0.1		)	(17.5		)	—			(20.2		)
Dividends paid	(105.1		)	—			—			(5.0		)	5.0			(105.1		)
Shares repurchased	(320.4		)	—			—			—			—			(320.4		)
Proceeds from loans from affiliates	—			9,772.2			—			—			(9,772.2		)	—
Repayment of loans from affiliates	—			(9,814.6		)	—			—			9,814.6			—
Contribution from affiliates	—			—			0.5			0.5			(1.0		)	—
Other financing activities	0.5			—			—			—			—			0.5
Net cash provided (used)	(253.7		)	(45.0		)	0.4			(22.0		)	46.4			(273.9		)
Cash and cash equivalents:
Net increase (decrease)	3.3			22.0			—			(107.5		)	—			(82.2		)
At beginning of year	0.2			32.6			—			137.8			—			170.6
At end of period	$	3.5		$	54.6		$	—		$	30.3		$	—		$	88.4

Condensed Consolidating Statements of Cash Flows - KCSR Notes—(Continued)



	Nine Months Ended September 30, 2016
	Parent			KCSR			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Operating activities:
Net cash provided	$	178.2		$	380.2		$	0.6		$	288.5		$	(163.9	)	$	683.6
Investing activities:
Capital expenditures	—			(269.0		)	(0.5		)	(135.6		)	—			(405.1		)
Purchase or replacement of equipment under operating leases	—			(26.6		)	—			—			—			(26.6		)
Property investments in MSLLC	—			—			—			(31.2		)	—			(31.2		)
Investment in and advances to affiliates	(103.4		)	—			(6.5		)	(0.9		)	109.9			(0.9		)
Proceeds from repayment of loans to affiliates	6,743.5			—			—			—			(6,743.5		)	—
Loans to affiliates	(6,742.5		)	—			—			—			6,742.5			—
Proceeds from disposal of property	—			1.4			—			2.3			(0.1		)	3.6
Other investing activities	—			(10.4		)	—			4.5			0.1			(5.8		)
Net cash used	(102.4		)	(304.6		)	(7.0		)	(160.9		)	108.9			(466.0		)
Financing activities:
Proceeds from short-term borrowings	6,499.0			243.5			—			—			(243.5		)	6,499.0
Repayment of short-term borrowings	(6,579.3		)	—			—			—			—			(6,579.3		)
Proceeds from issuance of long-term debt	248.7			—			—			—			—			248.7
Repayment of long-term debt	—			(2.5		)	(0.1		)	(18.2		)	—			(20.8		)
Dividends paid	(107.2		)	—			—			(162.2		)	162.2			(107.2		)
Shares repurchased	(99.8		)	—			—			—			—			(99.8		)
Proceeds from loans from affiliates	—			6,499.0			—			—			(6,499.0		)	—
Repayment of loans from affiliates	—			(6,743.5		)	—			—			6,743.5			—
Contribution from affiliates	—			96.6			6.5			6.8			(109.9		)	—
Other financing activities	(1.5		)	(0.1		)	—			(1.8		)	1.7			(1.7		)
Net cash provided (used)	(40.1		)	93.0			6.4			(175.4		)	55.0			(61.1		)
Cash and cash equivalents:
Net increase (decrease)	35.7			168.6			—			(47.8		)	—			156.5
At beginning of year	0.2			10.1			0.1			126.2			—			136.6
At end of period	$	35.9		$	178.7		$	0.1		$	78.4		$	—		$	293.1