EX-99.1 CHARTER 2 dex991.htm BURLINGTON NORTHERN SANTA FE PRESS RELEASE dex991.htm
 


Exhibit 99.1
     BNSF LOGO                                                                  

 
FOR IMMEDIATE RELEASE
Investor Contact:         Marsha Morgan                  
           (817) 352-6452

Media Contact:         Mary Jo Keating
                                       (817) 867-6407
    
Burlington Northern Santa Fe Reports
All-Time Record Fourth Quarter EPS


·    
Quarterly earnings were $1.46 per diluted share, compared with fourth-quarter 2006 earnings of $1.42 per diluted share.
 
·   
Freight revenues increased $352 million, or 9 percent, to $4.12 billion compared with $3.77 billion in the fourth quarter of 2006, principally due to strong yields and an increase in fuel surcharges of approximately $120 million.
 
·   
Operating income was $950 million, compared to $943 million in the fourth quarter of 2006.  Operating income reflects a $257 million increase in fuel expense, principally resulting from higher fuel prices.
 
·   
Full-year 2007 earnings per diluted share were $5.10.  This compared to earnings per diluted share of $5.11 for 2006.
 
·   
For 2007, BNSF exceeded $1 billion in free cash flow before dividends and achieved $738 million in free cash flow after dividends.

                  FORT WORTH, Texas,  January 29, 2008 - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $1.46 per diluted share, compared with fourth-quarter 2006 earnings of $1.42 per share. 
 
              “For the fifth consecutive year, BNSF achieved all-time record annual revenues and was able to generate record cash flows despite a soft economy.  In the fourth quarter, the Company was able to demonstrate earnings per share growth despite significant fuel headwind and continued softness in the Industrial Products and Consumer Products businesses. Looking forward, we continue to be optimistic about the long-term prospects for BNSF,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer.
 
-more-
             
        
           Fourth-quarter 2007 freight revenues increased $352 million, or 9 percent, to an all-time quarterly record of $4.12 billion compared with $3.77 billion in the prior year. The 9-percent increase in revenue is primarily attributable to record quarterly revenues and volumes for both the Agricultural Products and Coal business groups and an increase in fuel surcharges of approximately $120 million driven by rising fuel prices.
 
               Agricultural Products revenues were up $158 million, or 24 percent, to an all-time quarterly record of $804 million for the fourth quarter of 2007.  This increase was primarily due to a 14-percent unit volume increase, predominately from wheat, ethanol, soybeans and fertilizer.  Coal revenues rose by $119 million, or 15 percent, to $894 million, as a result of increased tons per unit and improved yields.  Industrial Products revenues increased by $41 million, or 5 percent, to $926 million on 2-percent higher unit volumes.  Strong demand for construction and petroleum products was offset by a decline in building products as a result of weakness in the housing market.  Consumer Products revenues of $1.50 billion were $34 million, or 2 percent higher than the fourth quarter of 2006, principally due to stronger yields.
 
       Operating expenses for the fourth quarter of 2007 were $3.30 billion compared with fourth-quarter 2006 operating expenses of $2.94 billion.  The $356 million increase in operating expenses was largely driven by a $257 million increase in fuel expense primarily reflecting increased prices and a reduced hedge benefit.
 
       For the full year of 2007, operating revenues reached a record $15.8 billion, a 5-percent increase over 2006, which included revenue increases in each of the Company’s four business groups, with record revenues in the Agricultural Products and Coal business groups.  Despite a $310 million reduction in fuel hedge benefit, 2007 operating income of $3.49 billion decreased slightly compared with the prior year.
 
       Burlington Northern Santa Fe Corporation’s subsidiary BNSF Railway Company operates one of the largest North American rail networks, with about 32,000 route miles in 28 states and two Canadian provinces. BNSF Railway Company is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, carries the components of many of the products we depend on daily, and hauls enough low-sulfur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway Company is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com. 
 
2
        
       BNSF’s free cash flow, as discussed above, is a non-GAAP measure and should be considered in addition to, but not as a substitute or preferable to, other information prepared in accordance with GAAP. However, the information is included herein as management believes that free cash flow provides meaningful information about BNSF’s ability to generate cash flows from the operation of its business.  Below is the calculation of free cash flow for 2007.
 
Free Cash Flow Calculation (in millions)
     2007  
Net cash provided by operating activities
$
 $3,492  
Net cash used for investing activities
   (2,374
)
Free Cash Flow before Dividends
   1,118  
Dividends paid
   (380
)
Free Cash Flow after Dividends
  $ 738  


Financial information follows:

3


Burlington Northern Santa Fe Corporation
Consolidated Income Information
(Dollars in millions, except per share data)
 
   
Three Months
    
   
Ended December 31,
  
Year Ended December 31,
   
2007
  
2006
  
2007
  
2006
  
2005
       
(As Adjusted)*
      
(As Adjusted)*
  
(As Adjusted)*
Operating revenues
                              
Freight revenues
   $ 4,121     $ 3,769     $ 15,349     $ 14,545     $ 12,606  
    Other revenues
     124       113       453       440       381  
Total operating revenues
     4,245       3,882        15,802       14,985       12,987  
                                         
Operating expenses
                                        
Compensation and benefits
     979       994        3,773       3,816       3,515  
Fuel
     960       703        3,197       2,734       1,959  
Purchased services
      513       461        2,023       1,906       1,713  
Depreciation and amortization
      340       301        1,293       1,176       1,111  
Equipment rents
      238       235        942       930       886  
Materials and other (a)
      265       245        1,088       902       876  
Total operating expenses
     3,295       2,939        12,316       11,464       10,060  
                                         
Operating income
     950       943        3,486       3,521       2,927  
Interest expense
      126       121        511       485       437  
Other expense, net
      1       10        18       40       37  
                                         
Income before income taxes
      823       812        2,957       2,996       2,453  
Income tax expense
      306       293        1,128       1,107       919  
                                         
Net income
   $  517     $ 519     $  1,829     $ 1,889     $ 1,534  
                                         
Diluted earnings per share
   $  1.46     $ 1.42     $ 5.10     $ 5.11     $ 4.02  
                                         
Diluted average shares outstanding (in millions)
      354.3       365.3       358.9       369.8       381.8  
                                         
Operating ratio (b)
      76.9 %     75.0 %      77.3 %     75.8 %     76.8 %
                                         
(a)  2007 includes a first-quarter charge of $81 million for additional environmental expenses and a technology system write-off.   2005
      includes a fourth-quarter net loss of $57 million from two commuter-related transactions.
(b) Calculated as total operating expenses less other revenues divided by freight revenues.
 *   Prior year numbers have been adjusted for the retrospective adoption of Financial Accounting Standards Board (FASB) Staff Position
      (FSP) AUG AIR-1, Accounting  for Planned Major Maintenance Activities.


4
 

    Burlington Northern Santa Fe Corporation
    Consolidated Income Information 2007
    (Dollars in millions, except per share data)
 
                           
2007
   
1st
  
2nd
  
3rd
  
4th
  
Full
   
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Year
                               
Operating revenues
                              
Freight revenues
   $ 3,544     $ 3,736     $ 3,948     $  4,121     $ 15,349  
    Other revenues
     101       107       121       124       453  
Total operating revenues
     3,645       3,843       4,069        4,245       15,802  
                                         
Operating expenses
                                        
Compensation and benefits
     932       925       937       979       3,773  
Fuel
     652       771       814        960       3,197  
Purchased services
     502       507       501        513       2,023  
Depreciation and amortization
     307       322       324        340       1,293  
Equipment rents
     232       237       235        238       942  
Materials and other (a)
     326       240       257        265       1,088  
Total operating expenses
     2,951       3,002       3,068        3,295       12,316  
                                         
Operating income
     694       841       1,001        950       3,486  
Interest expense
     121       132       132        126       511  
Other expense, net
     5       6       6        1       18  
                                         
Income before income taxes
     568       703       863        823       2,957  
Income tax expense
     219       270       333        306       1,128  
                                         
Net income
   $ 349     $ 433     $ 530     $  517     $ 1,829  
                                         
Diluted earnings per share
   $ 0.96     $ 1.20     $ 1.48     $  1.46     $ 5.10  
                                         
Diluted average shares outstanding (in millions)
     363.7       360.8       357.1        354.3       358.9  
                                         
Operating ratio (b)
     80.4 %     77.5 %     74.6 %      76.9 %     77.3 %
                                         
(a)  First-quarter includes a charge of $81 million for additional environmental expenses and a technology system write-off.
(b)  Calculated as total operating expenses less other revenues divided by freight revenues.

5


    Burlington Northern Santa Fe Corporation
    Consolidated Income Information 2006*
    (Dollars in millions, except per share data)
 
                           
2006
   
1st
  
2nd
  
3rd
  
4th
  
Full
   
Quarter
  
Quarter
  
Quarter
  
Quarter
  
Year
                               
Operating revenues
                              
Freight revenues
   $ 3,369     $ 3,592     $ 3,815     $ 3,769     $ 14,545  
    Other revenues
     94       109       124       113       440  
Total operating revenues
     3,463       3,701       3,939       3,882       14,985  
                                         
Operating expenses
                                        
Compensation and benefits
     919       928       975       994       3,816  
Fuel
     561       678       792       703       2,734  
Purchased services
     464       481       500       461       1,906  
Depreciation and amortization
     289       290       296       301       1,176  
Equipment rents
     231       232       232       235       930  
Materials and other
     206       228       223       245       902  
Total operating expenses
     2,670       2,837       3,018       2,939       11,464  
                                         
Operating income
     793       864       921       943       3,521  
Interest expense
     121       118       125       121       485  
Other expense, net
     9       11       10       10       40  
                                         
Income before income taxes
     663       735       786       812       2,996  
Income tax expense
     253       264       297       293       1,107  
                                         
Net income
   $ 410     $ 471     $ 489     $ 519     $ 1,889  
                                         
Diluted earnings per share
   $ 1.09     $ 1.27     $ 1.33     $ 1.42     $ 5.11  
                                         
Diluted average shares outstanding (in millions)
     376.7       370.7       366.8       365.3       369.8  
                                         
Operating ratio (a)
     76.5 %     75.9 %     75.9 %     75.0 %     75.8 %
                                         
(a) Calculated as total operating expenses less other revenues divided by freight revenues.
 *   Prior year numbers have been adjusted for the retrospective adoption of FSP AUG AIR-1, Accounting  for Planned Major Maintenance
      Activities.

6
 
Burlington Northern Santa Fe Corporation
  
Consolidated Balance Sheet Information
  
(Dollars in millions, except per share amounts)
  
 
 
December 31,
  
 
2007
  
2006
  
           
       (As Adjusted)*
 
  
Assets
                
Current assets:
                
Cash and cash equivalents
$
330 
    
$
375
    
Accounts receivable, net
  
 790 
     
805
    
Materials and supplies
   579       
488
    
Current portion of deferred income taxes
  
290 
      
345
    
Other current assets
  
192 
      
168
    
Total current assets
  
 2,181 
      
2,181
    
                 
Property and equipment, net
  
29,567 
      
27,921
    
                 
Other assets
  
 1,835 
      
1,695
    
                 
Total assets
$
 33,583 
    
$
31,797
    
                 
Liabilities and stockholders' equity
                
Current liabilities:
                
Accounts payable and other current liabilities
$
 2,824 
    
$
2,853
    
Long-term debt due within one year
  
 411 
      
473
    
Total current liabilities
  
 3,235 
      
3,326
    
                 
Long-term debt and commercial paper
  
 7,735 
      
6,912
    
Deferred income taxes
  
 8,484 
     
8,298
    
Casualty and environmental liabilities
  
 843 
     
830
    
Pension and retiree health and welfare liability
  
 444 
     
604
    
Employee separation costs
  
 77 
     
86
    
Other liabilities
  
 1,621 
     
1,213
    
Total liabilities
  
 22,439 
     
21,269
    
                 
Stockholders' equity:
                
Common stock and additional paid-in capital
  
 7,353 
     
6,995
    
Retained earnings
  
 11,152 
     
9,739
    
Treasury stock and other
  
 (7,361)
     
(6,206)
    
Total stockholders' equity
  
 11,144 
      
10,528
    
                 
Total liabilities and stockholders' equity
$
 33,583 
    
$
31,797
    
                 
Book value per share
$
 32.05 
    
$
29.42
    
Common shares outstanding (in millions)
  
 347.7 
      
357.9
    
Net debt to total capitalization (a)
  
 41.2 
 %    
40.0
 %   
                 
(a)  Net debt is calculated as total debt less cash and cash equivalents, and capitalization is calculated as the sum of net debt and
       total stockholders' equity.
    
 *   Prior year numbers have been adjusted for the retrospective adoption of FSP AUG AIR-1, Accounting  for Planned Major 
      Maintenance Activities.
    
7

    Burlington Northern Santa Fe Corporation
    Consolidated Cash Flow Information
    (in millions)
 
   
Three Months
      
   
Ended December 31,
    
Year Ended December 31,
   
2007
    
2006
    
2007
    
2006
    
2005
         
    (As Adjusted)*
          
    (As Adjusted)*
  
    (As Adjusted)*
Operating activities
                                  
                                       
Net income
$
 517 
   
$
519
    
$
 1,829 
   
$
1,889
    
$
1,534
  
Adjustments to reconcile net income to net cash provided by operating activities:
                                      
Depreciation and amortization
  
 340 
     
301
      
 1,293 
     
1,176
      
1,111
  
Deferred income taxes
  
 60 
     
155
      
 280 
     
316
      
219
  
Long-term casualty and environmental liabilities, net
  
-
      
(15)
      
 26 
     
(55)
      
(71)
  
Other, net
  
25 
      
(103)
      
 162 
     
(70)
      
(28)
  
Changes in accounts receivable sales program
  
 100 
     
-
      
 -  
      
-
      
(350)
  
                Other changes in working capital  
(15)
      (34)      
 (98)
       (67)       291   
                                       
Net cash provided by operating activities
  
 1,027 
     
823
      
 3,492 
      
3,189
      
2,706
  
                                       
Investing activities
                                      
                                       
Capital expenditures
  
 (473)
      
(465)
      
 (2,248)
      
(2,014)
      
(1,750)
  
Other, net
  
 210 
     
143
      
 (126)
      
(153)
      
(370)
  
                                       
Net cash used for investing activities
  
 (263)
      
(322)
      
 (2,374)
      
(2,167)
      
(2,120)
  
                                       
Financing activities
                                      
                                       
Dividends paid
  
 (112)
      
(90)
      
 (380)
      
(310)
      
(267)
  
Purchase of BNSF common stock
  
 (301)
      
(140)
      
 (1,265)
      
(730)
      
(799)
  
Proceeds from stock options exercised
  
 16 
     
17
      
 142 
     
116
      
244
  
Other, net
  
 (412)
      
3
      
 340 
     
202
      
(11)
  
                                       
Net cash used for financing activities
  
 (809)
      
(210)
      
 (1,163)
      
(722)
      
(833)
  
(Decrease) increase in cash and cash equivalents
  
 (45)
      
291
      
 (45)
      
300
      
(247)
  
Cash and cash equivalents:
                                      
                                       
Beginning of period
  
 375 
     
84
      
 375
      
75
      
322
  
End of period
$
 330 
   
$
375
    
$
 330
    
$
375
    
$
75
  
 
 *
  
Prior year numbers have been adjusted for the retrospective adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities and certain comparative prior period amounts have been adjusted to conform to the current period presentation.

8


    Burlington Northern Santa Fe Corporation
  
    Consolidated Cash Flow Information*
  
    (in millions)
  
   
                     
2007
   
1st
  
2nd
  
3rd
    
4th
  
Full
   
Quarter
  
Quarter
  
Quarter
    
Quarter
  
Year
                                 
Operating activities
                                
                                 
Net income
   $ 349     $ 433     $ 530     $
 517
     $ 1,829  
Adjustments to reconcile net income to net cash provided by operating activities:
                                        
Depreciation and amortization
     307       322       324      
 340
       1,293  
Deferred income taxes
     52       62       106      
 60
       280  
Long-term casualty and environmental liabilities, net
     42       (9 )     (7 )    
  - 
       26  
Other, net
     41       52       44      
25
       162  
Changes in accounts receivable sales program
     300       (300 )     (100 )    
 100
       -   
Other changes in working capital
     57       (132 )     (8 )     
 (15
 )     (98 ) 
                                         
Net cash provided by operating activities
     1,148       428       889      
 1,027
       3,492  
                                         
Investing activities
                                        
                                         
Capital expenditures
     (537 )     (615 )     (623 )    
 (473
 )     (2,248 ) 
Other, net
     (294 )     112       (154 )    
 210
       (126 ) 
                                         
Net cash used for investing activities
     (831 )     (503 )     (777 )    
 (263
 )      (2,374 ) 
                                         
Financing activities
                                        
                                         
Dividends paid
     (90 )     (89 )     (89 )    
 (112
 )      (380 ) 
Purchase of BNSF common stock
     (349 )     (360 )     (255 )    
 (301
 )      (1,265 ) 
Proceeds from stock options exercised
     55       60       11      
 16
       142  
Other, net
     84       465       203      
 (412
 )      340  
                                         
Net cash (used for) provided by financing activities
     (300 )     76       (130 )    
 (809
 )     (1,163 ) 
Increase (decrease) in cash and cash equivalents
     17       1       (18 )    
 (45
 )      (45 ) 
Cash and cash equivalents:
                                        
                                         
Beginning of period
     375       392       393      
 375
        375  
End of period
   $ 392     $ 393     $ 375     $
 330
     $  330  
                                         

 *   Certain interim period amounts have been reclassified to conform with the current period presentation.

9


    Burlington Northern Santa Fe Corporation
    Operating Statistics*
   
Three Months
      
   
Ended December 31,
    
Year Ended December 31,
   
2007
      
2006
      
2007
      
2006
      
2005
           
(As Adjusted)*
          
(As Adjusted)*
    
(As Adjusted)*
                                       
Cars/units (in thousands)
  
 2,600 
     
2,677
      
 10,318 
     
10,637
      
10,024
  
                                       
Average revenues per car/unit
$
 1,585 
   
$
1,408
    
$
 1,488 
   
$
1,367
    
$
1,258
  
                                       
Revenue ton miles (in millions)
  
 170,246 
     
163,790
      
 657,572 
     
647,857
      
604,656
  
                                       
Gross ton miles (in millions)
  
 288,172 
     
282,499
      
 1,121,255 
     
1,119,928
      
1,061,108
  
                                       
RTM/GTM
  
 0.59 
     
0.58
      
 0.59 
     
0.58
      
0.57
  
                                       
Freight revenue/thousand RTM
$
 24.21 
   
$
23.01
    
$
 23.34 
   
$
22.45
    
$
20.85
  
                                       
Operating expense/thousand RTM (a)
$
 19.35 
   
$
17.94
    
$
 18.73 
   
$
17.70
    
$
16.64
  
                                       
Freight revenue/thousand GTM
$
 14.30 
   
$
13.34
    
$
 13.69 
   
$
12.99
    
$
11.88
  
                                       
Operating expense/thousand GTM (a)
$
 11.43 
   
$
10.40
    
$
 10.98 
   
$
10.24
    
$
9.48
  
                                       
Compensation and benefits/thousand GTM
$
 3.40 
   
$
3.52
    
$
 3.36 
   
$
3.41
    
$
3.31
  
                                       
Average employees
  
 40,970 
     
41,550
      
 41,189 
     
41,338
      
39,353
  
                                       
Period end employees
  
 40,261 
     
41,201
      
 40,261 
     
41,201
      
40,388
  
                                       
Thousand RTM/average employee
  
 4,155 
     
3,942
      
 15,965 
     
15,672
      
15,365
  
                                       
Thousand GTM/average employee
  
 7,034 
     
6,799
      
 27,222 
     
27,092
      
26,964
  
                                       
Gallons of fuel used (in millions)
  
 373 
     
378
      
 1,442 
     
1,478
      
1,402
  
                                       
Average price per gallon of fuel (b)
$
 2.57 
   
$
1.86
    
$
 2.22 
   
$
1.85
    
$
1.40
  
                                       
GTM/gallon of fuel
  
 773 
     
747
      
 778 
     
758
      
757
  
                                       
Freight train miles (in millions)
  
 44 
     
44
      
 169 
     
173
      
167
  
                                       
GTM/freight train hours (in thousands)
  
 135 
     
124
      
 129 
     
123
      
121
  
                                       
Route miles operated
  
 32,205 
     
31,910
      
 32,205 
     
31,910
      
32,154
  
                                       
(a)
2007 includes a first-quarter charge of $81 million for additional environmental expenses and a technology system write-off.
(b)
Includes handling, taxes and hedge effect.
 *
Prior year numbers have been adjusted for the retrospective adoption of FSP AUG AIR-1, Accounting  for Planned Major Maintenance
Activities and certain comparative prior period amounts have been adjusted to conform to the current period presentation.

10

 
    Burlington Northern Santa Fe Corporation
    Operating Statistics*
                     2007
   
1st
  
2nd
  
3rd
  
4th
    Full
   
Quarter
  
Quarter
  
Quarter
  
Quarter
    Year
                               
Cars/units (in thousands)
  
2,507
    
2,581
    
2,630
    
 2,600 
   
 10,318 
 
                               
Average revenues per car/unit
$
1,414
  
$
1,448
  
$
1,501
  
$
 1,585 
 
$
  1,488 
 
                               
Revenue ton miles (in millions)
  
157,263
    
163,428
    
166,635
    
 170,246 
     657,572 
 
                               
Gross ton miles (in millions)
  
270,083
    
279,535
    
283,465
    
 288,172 
     1,121,255 
 
                               
RTM/GTM
  
0.58
    
0.58
    
0.59
    
 0.59 
     0.59 
 
                               
Freight revenue/thousand RTM
$
22.54
  
$
22.86
  
$
23.69
  
$
 24.21 
 
$
  23.34 
 
                               
Operating expense/thousand RTM  (a)
$
18.76
  
$
18.37
  
$
18.41
  
$
 19.35 
 
$
  18.73 
 
                               
Freight revenue/thousand GTM
$
13.12
  
$
13.37
  
$
13.93
  
$
 14.30 
 
$
  13.69 
 
                               
Operating expense/thousand GTM  (a)
$
10.93
  
$
10.74
  
$
10.82
  
$
 11.43 
 
$
  10.98 
 
                               
Compensation and benefits/thousand GTM
$
3.45
  
$
3.31
  
$
3.31
  
$
 3.40 
 
$
  3.36 
 
                               
Average employees
  
40,984
    
41,510
    
41,293
    
 40,970 
     41,189 
 
                               
Period end employees
  
41,541
    
41,328
    
41,087
    
 40,261 
     40,261 
 
                               
Thousand RTM/average employee
  
3,837
    
3,937
    
4,035
    
 4,155 
     15,965 
 
                               
Thousand GTM/average employee
  
6,590
    
6,734
    
6,865
    
 7,034 
     27,222 
 
                               
Gallons of fuel used (in millions)
  
360
    
356
    
353
    
 373 
     1,442 
 
                               
Average price per gallon of fuel (b)
$
1.81
  
$
2.17
  
$
2.31
  
$
 2.57 
 
$
  2.22 
 
                               
GTM/gallon of fuel
  
750
    
785
    
803
    
 773 
     778 
 
                               
Freight train miles (in millions)
  
41
    
42
    
42
    
 44 
   
 169 
 
                               
GTM/freight train hours (in thousands)
  
125
    
126
    
130
    
 135 
   
 129 
 
                               
Route Miles Operated
  
32,023
    
32,332
    
32,231
    
 32,205 
   
 32,205 
 
                               
(a)  2007 includes a first-quarter charge of $81 million for additional environmental expenses and a technology system write-off.
(b)  Includes handling, taxes and hedge effect.
 *   Certain interim period amounts have been reclassified to conform with the current period presentation.

11

Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity*
                           
   
Three Months
                    
06-07
   
Ended December 31,
  
Percent
    
Year Ended December 31,
  
Percent
 
  
2007
  
2006
  
Change
    
2007
  
2006
  
2005
  
Change
Revenues  (in millions)                                            
                                             
Domestic Intermodal
$
700 
 
$
674
      3.9 
%
  
$
  2,541   
$
2,564
  
$
2,372
      (0.9)
%
International Intermodal
  
664 
   
661
      0.5         2,627     
2,576
    
2,121
      2.0   
Automotive
  
133 
   
128
      3.9         496     
473
    
405
      4.9   
Total Consumer Products
  
1,497 
   
1,463
      2.3         5,664     
5,613
    
4,898
      0.9   
                                             
Industrial Products
  
 926 
   
885
      4.6         3,684     
3,589
    
3,128
      2.6   
Coal
    894     
775
      15.4         3,279     
2,916
    
2,448
      12.4   
Agricultural Products
    804     
646
      24.5         2,722     
2,427
    
2,132
      12.2   
Total freight revenue
    4,121     
3,769
      9.3         15,349     
14,545
    
12,606
      5.5   
Other revenue
    124     
113
      9.7         453     
440
    
381
      3.0   
Total revenues
$
  4,245   
$
3,882
      9.4 
%
  
$
  15,802   
$
14,985
  
$
12,987
      5.5 
%
                                             
Cars/units  (in thousands)
                                            
Domestic Intermodal
    551     
554
      (0.5)
%
      2,097     
2,151
    
2,110
      (2.5)
%
International Intermodal
    673     
793
      (15.1)        2,886     
3,195
    
2,928
      (9.7)  
Automotive
    42     
45
      (6.7)        166     
174
    
177
      (4.6)  
Total Consumer Products
    1,266     
1,392
      (9.1)        5,149     
5,520
    
5,215
      (6.7)  
                                             
Industrial Products
    412     
402
      2.5         1,664     
1,686
    
1,655
      (1.3)  
Coal
    640     
636
      0.6         2,472     
2,458
    
2,238
      0.6   
Agricultural Products
    282     
247
      14.2         1,033     
973
    
916
      6.2   
Total cars/units
    2,600     
2,677
      (2.9)
%
      10,318     
10,637
    
10,024
      (3.0)
%
                                             
Average revenue per car/unit
                                            
Domestic Intermodal
$
  1,270   
$
1,217
      4.4 
%
  
$
  1,212   
$
1,192
  
$
1,124
      1.7 
%
International Intermodal
    987     
834
      18.3         910     
806
    
724
      12.9   
Automotive
    3,167     
2,844
      11.4         2,988     
2,718
    
2,288
      9.9   
Total Consumer Products
    1,182     
1,051
      12.5         1,100     
1,017
    
939
      8.2   
                                             
Industrial Products
    2,248     
2,201
      2.1         2,214     
2,129
    
1,890
      4.0   
Coal
    1,397     
1,219
      14.6         1,326     
1,186
    
1,094
      11.8   
Agricultural Products
    2,851     
2,615
      9.0         2,635     
2,494
    
2,328
      5.7   
Average revenue per car/unit
$
  1,585   
$
1,408
      12.6 
%
  
$
  1,488   
$
1,367
  
$
1,258
      8.9 
%
                                             
Revenue ton miles  (in millions)
                                            
Domestic Intermodal
    13,737     
13,711
      0.2 
%
      52,492     
53,904
    
54,463
      (2.6)
%
International Intermodal
   20,039     
21,513
      (6.9)        82,526     
84,728
    
78,332
      (2.6)  
Automotive
    1,576     
1,602
      (1.6)        6,123     
6,004
    
5,794
      2.0   
Total Consumer Products
    35,352     
36,826
      (4.0)        141,141     
144,636
    
138,589
      (2.4)  
                                             
Industrial Products
    28,637     
28,252
      1.4         117,338     
120,130
    
116,404
      (2.3)  
Coal
    73,156     
70,366
      4.0         280,365     
271,499
    
242,409
      3.3   
Agricultural Products
    33,101     
28,346
      16.8         118,728     
111,592
    
107,254
      6.4   
Total revenue ton miles
    170,246     
163,790
      3.9 
%
      657,572     
647,857
    
604,656
      1.5 
%
                                             
Freight revenue per thousand ton miles
                                            
Domestic Intermodal
$
  50.96   
$
49.16
      3.7 
%
  
$
  48.41   
$
47.57
  
$
43.55
      1.8 
%
International Intermodal
    33.14     
30.73
      7.8         31.83     
30.40
    
27.08
      4.7   
Automotive
    84.39     
79.90
      5.6         81.01     
78.78
    
69.90
      2.8   
Total Consumer Products
    42.35     
39.73
      6.6         40.13     
38.81
    
35.34
      3.4   
                                             
Industrial Products
    32.34     
31.33
      3.2         31.40     
29.88
    
26.87
      5.1   
Coal
    12.22     
11.01
      11.0         11.70     
10.74
    
10.10
      8.9   
Agricultural Products
    24.29     
22.79
      6.6         22.93     
21.75
    
19.88
      5.4   
Freight revenue per thousand ton miles
$
  24.21   
$
23.01
      5.2 
%
  
$
  23.34   
$
22.45
  
$
20.85
      4.0 
%
 
 *   Certain comparative prior period amounts have been adjusted to conform to the current period presentation.
 
12
 
Burlington Northern Santa Fe Corporation
  
Revenue Statistics by Commodity*
  
                     
2007
   
1st
  
2nd
  
3rd
    
4th
  
Full
 
  
Quarter
  
Quarter
  
Quarter
    
Quarter
  
Year
Revenues  (in millions)                                
                                         
Domestic Intermodal
    $ 586      $ 610      $ 645      $ 700      $ 2,541   
International Intermodal
     610       663       690       664        2,627   
Automotive
     116       127       120       133        496   
Total Consumer Products
     1,312       1,400       1,455       1,497        5,664   
                                         
Industrial Products
     846       950       962       926        3,684   
Coal
     760       776       849       894        3,279   
Agricultural Products
     626       610       682       804        2,722   
Total freight revenue
     3,544       3,736       3,948       4,121        15,349   
Other revenue
     101       107       121       124        453   
Total revenues
   $ 3,645     $ 3,843     $ 4,069     $ 4,245      $ 15,802   
                                         
Cars/units  (in thousands)
                                        
Domestic Intermodal
     508       510       528       551        2,097   
International Intermodal
     727       746       740       673        2,886   
Automotive
     41       44       39       42        166   
Total Consumer Products
     1,276       1,300       1,307       1,266        5,149   
                                         
Industrial Products
     390       431       431       412        1,664   
Coal
     594       611       627       640        2,472   
Agricultural Products
     247       239       265       282        1,033   
Total cars/units
     2,507       2,581       2,630       2,600        10,318   
                                         
Average revenue per car/unit
                                        
Domestic Intermodal
   $ 1,154     $ 1,196     $ 1,222      $ 1,270      $ 1,212   
International Intermodal
     839       889       932       987        910   
Automotive
     2,829       2,886       3,077       3,167        2,988   
Total Consumer Products
     1,028       1,077       1,113       1,182        1,100   
                                         
Industrial Products
     2,169       2,204       2,232       2,248        2,214   
Coal
     1,279       1,270       1,354       1,397        1,326   
Agricultural Products
     2,534       2,552       2,574       2,851        2,635   
Average revenue per car/unit
   $ 1,414     $ 1,448     $ 1,501      $ 1,585      $ 1,488   
                                         
Revenue ton miles  (in millions)
                                        
Domestic Intermodal
     12,588       12,836       13,331       13,737        52,492   
International Intermodal
     20,321       21,312       20,854       20,039        82,526   
Automotive
     1,464       1,629       1,454       1,576        6,123   
Total Consumer Products
     34,373       35,777       35,639       35,352        141,141   
                                         
Industrial Products
     27,735       30,629       30,337       28,637        117,338   
Coal
     66,434       69,307       71,468       73,156        280,365   
Agricultural Products
     28,721       27,715       29,191       33,101        118,728   
Total revenue ton miles
     157,263       163,428       166,635       170,246        657,572   
                                         
Freight revenue per thousand ton miles
                                        
Domestic Intermodal
   $ 46.55     $ 47.52     $ 48.38      $ 50.96      $ 48.41   
International Intermodal
     30.02       31.11       33.09       33.14        31.83   
Automotive
     79.23       77.96       82.53       84.39        81.01   
Total Consumer Products
     38.17       39.13       40.83       42.35        40.13   
                                         
Industrial Products
     30.50       31.02       31.71       32.34        31.40   
Coal
     11.44       11.20       11.88       12.22        11.70   
Agricultural Products
     21.80       22.01       23.36       24.29        22.93   
Freight revenue per thousand ton miles
   $ 22.54     $ 22.86     $ 23.69      $ 24.21      $ 23.34   
 
 *   Certain interim period amounts have been reclassified to conform with the current period presentation.


13


    Burlington Northern Santa Fe Corporation
    Capital Expenditures and Track Maintenance
 
   
Three Months
    
   
Ended December 31,
  
Year Ended December 31,
   
2007
  
2006
  
2007
  
2006
  
2005
         
 
        
 
  
 
Capital expenditures  (in millions)
                              
Maintenance of way
                              
Rail
   $ 71     $ 53     $ 376     $ 304     $ 232  
Ties
     60       66       316       311       284  
Surfacing
     41       44       235       214       183  
Other
     99       94        432       397       354  
Total maintenance of way
     271       257        1,359       1,226       1,053  
Mechanical
     39       41        141       152       136  
Information services
     26       19        75       65       64  
Other
     31       39        105       121       108  
Total maintenance of business
     367       356        1,680       1,564       1,361  
                                         
Terminal and line expansion
     106       109        568       450       389  
Total capital expenditures
   $  473     $ 465     $  2,248     $ 2,014     $ 1,750  
                                         
Track maintenance
                                        
Track miles of rail laid
                                        
Maintenance of business
      174       133       773       692       517  
Expansion projects
      36       14        183       125       162  
Total
      210       147        956       817       679  
                                         
Cross ties inserted (thousands)
                                        
    Maintenance of business
      479       531        2,708       2,638       2,782  
    Expansion projects
      87       32        418       319       389  
Total
      566       563        3,126       2,957       3,171  
                                         
Track resurfaced (miles)
      1,869       2,181        11,687       12,588       12,790  
 
 

14


    Burlington Northern Santa Fe Corporation
    Capital Expenditures and Track Maintenance
 
                   
  2007
 
   
1st
  
2nd
  
3rd
  
4th
  
  Full
 
   
Quarter
  
Quarter
  
Quarter
  
Quarter
  
  Year
 
                                   
Capital expenditures  (in millions)
                                  
Maintenance of way
                                  
Rail
    $ 82      $ 117      $ 106     $ 71      $ 376  
Ties
     78       100       78        60       316    
Surfacing
     48       78       68        41       235    
Other
     103       102       128        99       432    
Total maintenance of way
     311       397       380        271       1,359    
Mechanical
     26       36       40        39       141    
Information services
     16       20       13        26       75    
Other
     27       24       23        31       105    
Total maintenance of business
     380       477       456        367       1,680    
                                           
Terminal and line expansion
     157       138       167        106       568    
Total capital expenditures
    $ 537      $ 615      $ 623     $  473     $ 2,248  
                                           
Track maintenance
                                          
Track miles of rail laid
                                          
Maintenance of business
     125       246       228       174       773    
Expansion projects
     21       51       75       36       183    
Total
     146       297       303        210       956    
                                           
Cross ties inserted (thousands)
                                          
    Maintenance of business
     664       818       747        479       2,708    
    Expansion projects
     54       133       144        87       418    
Total
     718       951       891        566       3,126    
                                           
Track resurfaced (miles)
     2,136       4,234       3,448        1,869       11,687    
   
   

15


Burlington Northern Santa Fe Corporation
Outstanding Debt
(Dollars in millions)
 
 
December 31,
 
2007
  
2006
               
Notes and debentures, weighted average rate of 6.6 percent, due 2008 to 2097*
$
  6,376     
$
5,364
  
               
Equipment obligations, weighted average rate of 6.6 percent, due 2008 to 2016
    297       
347
  
               
Capitalized lease obligations, weighted average rate of 6.3 percent, due 2008 to 2027
    938       
609
  
               
Mortgage bonds, weighted average rate of 5.6 percent, due 2008 to 2047
    102       
106
  
               
Financing obligations, weighted average rate of 6.3 percent, due 2008 to 2028
    211       
153
  
               
Commercial paper, weighted average rate of 5.5 percent
    261       
846
  
               
Unamortized discount and other, net
    (39)      
(40)
  
               
Total outstanding debt
    8,146       
7,385
  
               
Less:  current portion of long-term debt
    (411)      
(473)
  
               
    Long-term debt
$
  7,735     
$
6,912
  
               
  *  Notes and debentures include a fair value adjustment increase for hedges of $6 million and a decrease of $6 million at 
      December 31, 2007 and 2006, respectively.


16