Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Quarterly Financial Information


	Fourth		Third		Second		First
	(In millions, except per share amounts)
2020
Revenues	$	693.4	$	659.6	$	547.9	$	731.7
Operating income (i)(ii)	262.3		271.5		180.4		288.8
Net income (iii)	166.3		190.2		110.3		152.3
Net income attributable to Kansas City Southern and subsidiaries	165.7		189.8		109.7		151.8
Per share data:
Basic earnings per common share	$	1.81	$	2.02	$	1.16	$	1.59
Diluted earnings per common share	1.80		2.01		1.16		1.58

2019
Revenues	$	729.5	$	747.7	$	714.0	$	674.8
Operating income (iv)	236.0		282.0		208.0		160.3
Net income (v)	127.9		180.6		129.1		103.2
Net income attributable to Kansas City Southern and subsidiaries	127.2		180.2		128.7		102.8
Per share data:
Basic earnings per common share	$	1.31	$	1.81	$	1.29	$	1.02
Diluted earnings per common share	1.30		1.81		1.28		1.02

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(i) During the first, second and third quarters of 2020, the Company recognized pre-tax restructuring charges of

$6.0 million, $10.5 million and $0.5 million, respectively, within operating expenses related to the Company’s VSP program and the purchase of impaired, leased locomotives.

(ii) During the fourth quarter of 2020, the Company recognized $13.6 million of pre-tax expense within operating expenses related to the write-off of software development costs.

(iii) During the first, second and third quarters of 2020, the Company recognized tax expense of $2.2 million and $2.0 million, and a benefit of $4.2 million, respectively, for GILTI tax expense recognized in the first and second quarters of 2020, and subsequently reversed in the third quarter of 2020 when GILTI regulations were finalized. Additionally, during the third quarter of 2020, the Company recognized a $14.5 million tax benefit for the reversal of 2018 and 2019 GILTI tax expense recognized in prior years’ consolidated financial statements.

(iv) During the first, second, third and fourth quarters of 2019, the Company recognized pre-tax restructuring charges of $67.5 million, $51.0 million, $12.0 million and $38.3 million, respectively, within operating expenses related to the implementation of PSR initiatives.

(v) During the first, second, third, and fourth quarters of 2019, the Company recognized, net, a tax benefit of $6.8 million, expense of $1.9 million, and benefits of $3.7 million, and $4.2 million, respectively, related to the Mexican fuel excise tax credit generated through April 29, 2019. Prior to 2019, the Company recognized a pre-tax benefit within operating expenses related to a credit that was available for the excise tax included in the price of fuel that was purchased and consumed in locomotives and certain work equipment in Mexico. Effective January 1, 2019, the Company began recognizing the benefit as a reduction of income tax expense due to changes in Mexican tax law; and beginning April 30, 2019, railroads in Mexico are no longer eligible for the tax credit due to changes in Mexican tax regulations.