Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statements of Comprehensive Income



	Three Months Ended June 30, 2019
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	321.5		$	10.7	$	392.4		$	(10.6	)	$	714.0
Operating expenses	2.1			262.4			9.9		242.2			(10.6		)	506.0
Operating income (loss)	(2.1		)	59.1			0.8		150.2			—			208.0
Equity in net earnings (losses) of affiliates	130.6			(0.2		)	1.1		(0.7		)	(131.0		)	(0.2		)
Interest expense	(26.5		)	(21.5		)	—		(6.9		)	26.9			(28.0		)
Debt retirement costs	—			—			—		—			—			—
Foreign exchange gain	—			—			—		8.3			—			8.3
Other income (expense), net	26.5			(0.3		)	—		0.8			(26.9		)	0.1
Income before income taxes	128.5			37.1			1.9		151.7			(131.0		)	188.2
Income tax expense (benefit)	(0.2		)	8.3			0.3		50.7			—			59.1
Net income	128.7			28.8			1.6		101.0			(131.0		)	129.1
Less: Net income attributable to noncontrolling interest	—			—			—		0.4			—			0.4
Net income attributable to Kansas City Southern and subsidiaries	128.7			28.8			1.6		100.6			(131.0		)	128.7
Other comprehensive income (loss)	(7.5		)	—			—		0.1			(0.1		)	(7.5		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	121.2		$	28.8		$	1.6	$	100.7		$	(131.1	)	$	121.2

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



	Three Months Ended June 30, 2018
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	314.1		$	11.5	$	367.5		$	(10.7	)	$	682.4
Operating expenses	2.3			226.9			9.7		208.4			(10.7		)	436.6
Operating income (loss)	(2.3		)	87.2			1.8		159.1			—			245.8
Equity in net earnings (losses) of affiliates	125.3			(0.5		)	0.9		0.5			(125.2		)	1.0
Interest expense	(23.1		)	(17.8		)	—		(7.3		)	20.2			(28.0		)
Debt retirement costs	—			—			—		(2.2		)	—			(2.2		)
Foreign exchange loss	—			—			—		(21.0		)	—			(21.0		)
Other income, net	20.0			0.6			—		—			(20.1		)	0.5
Income before income taxes	119.9			69.5			2.7		129.1			(125.1		)	196.1
Income tax expense (benefit)	(28.3		)	12.6			0.9		62.2			—			47.4
Net income	148.2			56.9			1.8		66.9			(125.1		)	148.7
Less: Net income attributable to noncontrolling interest	—			—			—		0.5			—			0.5
Net income attributable to Kansas City Southern and subsidiaries	148.2			56.9			1.8		66.4			(125.1		)	148.2
Other comprehensive income (loss)	0.3			—			—		(1.2		)	1.2			0.3
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	148.5		$	56.9		$	1.8	$	65.2		$	(123.9	)	$	148.5



	Six Months Ended June 30, 2019
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	645.7		$	22.4	$	741.7		$	(21.0	)	$	1,388.8
Operating expenses	3.3			553.5			19.5		465.4			(21.2		)	1,020.5
Operating income (loss)	(3.3		)	92.2			2.9		276.3			0.2			368.3
Equity in net earnings (losses) of affiliates	233.0			(0.5		)	1.8		0.6			(233.4		)	1.5
Interest expense	(52.9		)	(42.9		)	—		(14.0		)	53.6			(56.2		)
Debt retirement costs	(0.2		)	(0.2		)	—		(0.2		)	—			(0.6		)
Foreign exchange gain	—			—			—		12.9			—			12.9
Other income (expense), net	53.0			(0.7		)	—		1.6			(53.7		)	0.2
Income before income taxes	229.6			47.9			4.7		277.2			(233.3		)	326.1
Income tax expense (benefit)	(1.9		)	10.2			1.0		84.5			—			93.8
Net income	231.5			37.7			3.7		192.7			(233.3		)	232.3
Less: Net income attributable to noncontrolling interest	—			—			—		0.8			—			0.8
Net income attributable to Kansas City Southern and subsidiaries	231.5			37.7			3.7		191.9			(233.3		)	231.5
Other comprehensive income (loss)	(12.4		)	—			—		0.3			(0.3		)	(12.4		)
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	219.1		$	37.7		$	3.7	$	192.2		$	(233.6	)	$	219.1

Condensed Consolidating Statements of Comprehensive Income—(Continued)



	Six Months Ended June 30, 2018
	Parent			KCSR			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Revenues	$	—		$	615.9		$	20.4	$	704.3		$	(19.6	)	$	1,321.0
Operating expenses	3.5			452.7			17.9		402.0			(19.6		)	856.5
Operating income (loss)	(3.5		)	163.2			2.5		302.3			—			464.5
Equity in net earnings (losses) of affiliates	280.0			(0.7		)	1.7		1.1			(280.1		)	2.0
Interest expense	(44.4		)	(35.1		)	—		(14.2		)	40.2			(53.5		)
Debt retirement costs	—			—			—		(2.2		)	—			(2.2		)
Foreign exchange gain	—			—			—		6.8			—			6.8
Other income, net	39.6			0.3			—		0.5			(40.2		)	0.2
Income before income taxes	271.7			127.7			4.2		294.3			(280.1		)	417.8
Income tax expense (benefit)	(21.0		)	25.0			1.3		118.9			—			124.2
Net income	292.7			102.7			2.9		175.4			(280.1		)	293.6
Less: Net income attributable to noncontrolling interest	—			—			—		0.9			—			0.9
Net income attributable to Kansas City Southern and subsidiaries	292.7			102.7			2.9		174.5			(280.1		)	292.7
Other comprehensive income	6.0			—			—		—			—			6.0
Comprehensive income attributable to Kansas City Southern and subsidiaries	$	298.7		$	102.7		$	2.9	$	174.5		$	(280.1	)	$	298.7

Condensed Consolidating Balance Sheets



	June 30, 2019
	Parent			KCSR		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated KCS
Assets:
Current assets	$	195.4		$	251.8	$	5.8	$	368.4	$	(211.7	)	$	609.7
Operating lease right-of-use assets	—			164.3		—		33.1		(4.2		)	193.2
Investments	—			3.5		5.9		38.6		—			48.0
Investments in consolidated subsidiaries	5,012.5			3.2		200.2		—		(5,215.9		)	—
Property and equipment (including concession assets), net	—			4,383.9		161.7		4,206.8		(7.8		)	8,744.6
Other assets	2,523.1			16.7		—		23.8		(2,521.0		)	42.6
Total assets	$	7,731.0		$	4,823.4	$	373.6	$	4,670.7	$	(7,960.6	)	$	9,638.1
Liabilities and equity:
Current liabilities	$	583.9		$	46.8	$	75.9	$	274.7	$	(214.0	)	$	767.3
Long-term operating lease liabilities	—			88.3		—		18.8		(3.3		)	103.8
Long-term debt	2,307.4			1,827.9		—		787.1		(2,521.0		)	2,401.4
Deferred income taxes	(8.0		)	821.6		84.6		191.9		(2.0		)	1,088.1
Other liabilities	18.5			92.1		0.2		15.2		—			126.0
Stockholders’ equity	4,829.2			1,946.7		212.9		3,060.7		(5,220.3		)	4,829.2
Noncontrolling interest	—			—		—		322.3		—			322.3
Total liabilities and equity	$	7,731.0		$	4,823.4	$	373.6	$	4,670.7	$	(7,960.6	)	$	9,638.1

Condensed Consolidating Balance Sheets—(Continued)



	December 31, 2018
	Parent			KCSR		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated KCS
Assets:
Current assets	$	229.8		$	257.6	$	5.0	$	350.4	$	(207.4	)	$	635.4
Operating lease right-of-use assets	—			—		—		—		—			—
Investments	—			3.9		4.4		36.6		—			44.9
Investments in consolidated subsidiaries	4,852.8			4.4		190.2		—		(5,047.4		)	—
Property and equipment (including concession assets), net	—			4,429.2		165.1		4,104.8		(8.0		)	8,691.1
Other assets	2,523.4			59.3		—		36.8		(2,521.1		)	98.4
Total assets	$	7,606.0		$	4,754.4	$	364.7	$	4,528.6	$	(7,783.9	)	$	9,469.8
Liabilities and equity:
Current liabilities	$	214.2		$	109.2	$	80.1	$	252.3	$	(208.8	)	$	447.0
Long-term operating lease liabilities	—			—		—		—		—			—
Long-term debt	2,563.0			1,828.8		—		808.5		(2,521.0		)	2,679.3
Deferred income taxes	(4.4		)	812.8		84.7		188.8		(2.0		)	1,079.9
Other liabilities	20.2			94.8		0.2		15.8		(0.1		)	130.9
Stockholders’ equity	4,813.0			1,908.8		199.7		2,943.5		(5,052.0		)	4,813.0
Noncontrolling interest	—			—		—		319.7		—			319.7
Total liabilities and equity	$	7,606.0		$	4,754.4	$	364.7	$	4,528.6	$	(7,783.9	)	$	9,469.8

Condensed Consolidating Statements of Cash Flows



	Six Months Ended June 30, 2019
	Parent			KCSR			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Operating activities:
Net cash provided	$	180.7		$	150.2		$	0.4		$	293.0		$	(83.1	)	$	541.2
Investing activities:
Capital expenditures	—			(153.4		)	(0.4		)	(196.6		)	—			(350.4		)
Purchase or replacement of equipment under operating leases	—			(0.3		)	—			(0.6		)	—			(0.9		)
Property investments in MSLLC	—			—			—			(22.3		)	—			(22.3		)
Investments in and advances to affiliates	(9.3		)	—			(9.3		)	(14.2		)	17.5			(15.3		)
Proceeds from repayment of loans to affiliates	131.0			—			—			40.0			(171.0		)	—
Loans to affiliates	(131.0		)	—			—			(40.0		)	171.0			—
Proceeds from disposal of property	—			11.5			—			0.8			—			12.3
Other investing activities	—			(3.8		)	—			6.3			—			2.5
Net cash used	(9.3		)	(146.0		)	(9.7		)	(226.6		)	17.5			(374.1		)
Financing activities:
Net short-term borrowings	—			—			—			—			—			—
Proceeds from issuance of long-term debt	—			—			—			—			—			—
Repayment of long-term debt	—			(1.9		)	—			(3.6		)	—			(5.5		)
Debt issuance and retirement costs paid	—			(1.2		)	—			(1.3		)	—			(2.5		)
Dividends paid	(72.6		)	—			—			(83.1		)	83.1			(72.6		)
Shares repurchased	(142.7		)	—			—			—			—			(142.7		)
Proceeds from loans from affiliates	40.0			131.0			—			—			(171.0		)	—
Repayment of loans from affiliates	(40.0		)	(131.0		)	—			—			171.0			—
Contribution from affiliates	—			—			9.3			8.2			(17.5		)	—
Other financing activities	3.3			—			—			—			—			3.3
Net cash provided (used)	(212.0		)	(3.1		)	9.3			(79.8		)	65.6			(220.0		)
Cash and cash equivalents:
Net increase (decrease)	(40.6		)	1.1			—			(13.4		)	—			(52.9		)
At beginning of year	41.5			28.1			—			30.9			—			100.5
At end of period	$	0.9		$	29.2		$	—		$	17.5		$	—		$	47.6

Condensed Consolidating Statements of Cash Flows—(Continued)



	Six Months Ended June 30, 2018
	Parent			KCSR			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated KCS
Operating activities:
Net cash provided	$	132.3		$	164.7		$	0.2		$	271.7		$	(143.1	)	$	425.8
Investing activities:
Capital expenditures	—			(116.0		)	(0.1		)	(151.2		)	—			(267.3		)
Purchase or replacement of equipment under operating leases	—			(88.3		)	—			(10.6		)	—			(98.9		)
Property investments in MSLLC	—			—			—			(20.4		)	—			(20.4		)
Investment in and advances to affiliates	(5.2		)	—			(5.2		)	(4.3		)	8.4			(6.3		)
Proceeds from repayment of loans to affiliates	3,766.8			—			—			125.0			(3,891.8		)	—
Loans to affiliates	(3,841.9		)	—			—			(125.0		)	3,966.9			—
Proceeds from disposal of property	—			3.0			—			2.7			—			5.7
Other investing activities	—			2.2			—			0.8			—			3.0
Net cash used	(80.3		)	(199.1		)	(5.3		)	(183.0		)	83.5			(384.2		)
Financing activities:
Net short-term borrowings	(348.1		)	—			—			—			—			(348.1		)
Proceeds from issuance of long-term debt	499.4			—			—			—			—			499.4
Repayment of long-term debt	—			(1.8		)	(0.1		)	(74.1		)	—			(76.0		)
Debt issuance and retirement costs paid	(6.2		)	—			—			(1.8		)	—			(8.0		)
Dividends paid	(74.1		)	—			—			(143.1		)	143.1			(74.1		)
Shares repurchased	(108.5		)	—			—			—			—			(108.5		)
Proceeds from loans from affiliates	125.0			3,791.9			—			50.0			(3,966.9		)	—
Repayment of loans from affiliates	(125.0		)	(3,766.8		)	—			—			3,891.8			—
Contribution from affiliates	—			—			5.2			3.2			(8.4		)	—
Other financing activities	0.7			—			—			—			—			0.7
Net cash provided (used)	(36.8		)	23.3			5.1			(165.8		)	59.6			(114.6		)
Cash and cash equivalents:
Net increase (decrease)	15.2			(11.1		)	—			(77.1		)	—			(73.0		)
At beginning of year	0.7			17.6			—			115.8			—			134.1
At end of period	$	15.9		$	6.5		$	—		$	38.7		$	—		$	61.1