|
(Mark One)
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
06-0984624
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
|
|
20 West Avenue, Darien, Connecticut 06820
|
||
(Address of principal executive offices)(Zip Code)
|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
o
|
|
|
|
|
|
|
|
Non-accelerated filer
|
|
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
o
|
Class
|
|
Number of Shares Outstanding
|
Class A Common Stock
|
|
57,155,398
|
Class B Common Stock
|
|
793,138
|
|
INDEX
|
||
|
|
Page
|
|
|
|
|
||
|
|
|
Part I
|
||
|
|
|
Item 1.
|
|
|
|
|
|
|
|
|
|
||
|
||
|
|
|
|
||
|
|
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Item 2.
|
||
|
|
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Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Part II
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
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Item 2.
|
||
|
|
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Item 3.
|
||
|
|
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Item 4.
|
||
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|
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Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
39,113
|
|
|
$
|
35,941
|
|
Accounts receivable, net
|
362,433
|
|
|
382,458
|
|
||
Materials and supplies
|
48,023
|
|
|
45,790
|
|
||
Prepaid expenses and other
|
52,218
|
|
|
43,197
|
|
||
Total current assets
|
501,787
|
|
|
507,386
|
|
||
PROPERTY AND EQUIPMENT, net
|
4,230,511
|
|
|
4,215,063
|
|
||
GOODWILL
|
829,058
|
|
|
826,575
|
|
||
INTANGIBLE ASSETS, net
|
1,116,804
|
|
|
1,128,952
|
|
||
DEFERRED INCOME TAX ASSETS, net
|
2,520
|
|
|
2,270
|
|
||
OTHER ASSETS, net
|
25,372
|
|
|
22,836
|
|
||
Total assets
|
$
|
6,706,052
|
|
|
$
|
6,703,082
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Current portion of long-term debt
|
$
|
108,114
|
|
|
$
|
75,966
|
|
Accounts payable
|
257,166
|
|
|
282,275
|
|
||
Accrued expenses
|
181,509
|
|
|
169,586
|
|
||
Total current liabilities
|
546,789
|
|
|
527,827
|
|
||
LONG-TERM DEBT, less current portion
|
2,142,306
|
|
|
2,205,785
|
|
||
DEFERRED INCOME TAX LIABILITIES, net
|
983,925
|
|
|
983,136
|
|
||
DEFERRED ITEMS - grants from outside parties
|
298,085
|
|
|
292,198
|
|
||
OTHER LONG-TERM LIABILITIES
|
159,647
|
|
|
174,675
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||
EQUITY:
|
|
|
|
||||
Class A Common Stock, $0.01 par value, one vote per share; 180,000,000 shares authorized at March 31, 2016 and December 31, 2015; 69,927,543 and 69,674,185 shares issued and 57,155,726 and 56,945,384 shares outstanding (net of 12,771,817 and 12,728,801 shares in treasury) on March 31, 2016 and December 31, 2015, respectively
|
699
|
|
|
697
|
|
||
Class B Common Stock, $0.01 par value, ten votes per share; 30,000,000 shares authorized at March 31, 2016 and December 31, 2015; 793,138 shares issued and outstanding on March 31, 2016 and December 31, 2015.
|
8
|
|
|
8
|
|
||
Additional paid-in capital
|
1,362,523
|
|
|
1,355,345
|
|
||
Retained earnings
|
1,571,695
|
|
|
1,544,676
|
|
||
Accumulated other comprehensive loss
|
(129,844
|
)
|
|
(153,457
|
)
|
||
Treasury stock, at cost
|
(229,781
|
)
|
|
(227,808
|
)
|
||
Total equity
|
2,575,300
|
|
|
2,519,461
|
|
||
Total liabilities and equity
|
$
|
6,706,052
|
|
|
$
|
6,703,082
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
OPERATING REVENUES
|
$
|
482,616
|
|
|
$
|
397,030
|
|
OPERATING EXPENSES:
|
|
|
|
||||
Labor and benefits
|
163,114
|
|
|
132,118
|
|
||
Equipment rents
|
38,430
|
|
|
22,032
|
|
||
Purchased services
|
46,502
|
|
|
24,381
|
|
||
Depreciation and amortization
|
49,330
|
|
|
42,217
|
|
||
Diesel fuel used in train operations
|
25,466
|
|
|
29,697
|
|
||
Electricity used in train operations
|
3,365
|
|
|
389
|
|
||
Casualties and insurance
|
10,120
|
|
|
8,523
|
|
||
Materials
|
21,591
|
|
|
18,695
|
|
||
Trackage rights
|
20,576
|
|
|
13,333
|
|
||
Net loss/(gain) on sale and impairment of assets
|
12,825
|
|
|
(317
|
)
|
||
Restructuring costs
|
1,127
|
|
|
—
|
|
||
Other expenses
|
33,174
|
|
|
33,342
|
|
||
Total operating expenses
|
425,620
|
|
|
324,410
|
|
||
INCOME FROM OPERATIONS
|
56,996
|
|
|
72,620
|
|
||
Interest income
|
75
|
|
|
26
|
|
||
Interest expense
|
(17,975
|
)
|
|
(13,508
|
)
|
||
Loss on settlement of foreign currency forward purchase contracts
|
—
|
|
|
(18,686
|
)
|
||
Other income, net
|
731
|
|
|
314
|
|
||
Income before income taxes
|
39,827
|
|
|
40,766
|
|
||
Provision for income taxes
|
(12,808
|
)
|
|
(16,862
|
)
|
||
Net income
|
$
|
27,019
|
|
|
$
|
23,904
|
|
Basic earnings per common share
|
$
|
0.47
|
|
|
$
|
0.43
|
|
Weighted average shares - Basic
|
57,025
|
|
|
55,826
|
|
||
Diluted earnings per common share
|
$
|
0.47
|
|
|
$
|
0.42
|
|
Weighted average shares - Diluted
|
57,964
|
|
|
57,121
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
NET INCOME
|
$
|
27,019
|
|
|
$
|
23,904
|
|
OTHER COMPREHENSIVE INCOME/(LOSS):
|
|
|
|
||||
Foreign currency translation adjustment
|
31,121
|
|
|
(46,747
|
)
|
||
Net unrealized loss on qualifying cash flow hedges, net of tax benefit of $6,288 and $4,207, respectively
|
(9,431
|
)
|
|
(6,311
|
)
|
||
Changes in pension and other postretirement benefits, net of tax (provision) of ($520) and ($30), respectively
|
1,923
|
|
|
53
|
|
||
Other comprehensive income/(loss)
|
23,613
|
|
|
(53,005
|
)
|
||
COMPREHENSIVE INCOME/(LOSS)
|
$
|
50,632
|
|
|
$
|
(29,101
|
)
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
27,019
|
|
|
$
|
23,904
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
49,330
|
|
|
41,813
|
|
||
Stock-based compensation
|
5,074
|
|
|
3,881
|
|
||
Excess tax benefit from share-based compensation
|
(53
|
)
|
|
(834
|
)
|
||
Deferred income taxes
|
5,029
|
|
|
10,236
|
|
||
Net loss/(gain) on sale and impairment of assets
|
12,825
|
|
|
(317
|
)
|
||
Loss on settlement of foreign currency forward purchase contracts
|
—
|
|
|
18,686
|
|
||
Changes in assets and liabilities which provided/(used) cash, net of effect of acquisitions:
|
|
|
|
||||
Accounts receivable, net
|
9,617
|
|
|
20,547
|
|
||
Materials and supplies
|
(1,381
|
)
|
|
543
|
|
||
Prepaid expenses and other
|
(6,564
|
)
|
|
(3,410
|
)
|
||
Accounts payable and accrued expenses
|
(26,877
|
)
|
|
(32,133
|
)
|
||
Other assets and liabilities, net
|
4,048
|
|
|
1,078
|
|
||
Net cash provided by operating activities
|
78,067
|
|
|
83,994
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchase of property and equipment
|
(55,993
|
)
|
|
(66,267
|
)
|
||
Grant proceeds from outside parties
|
16,229
|
|
|
16,369
|
|
||
Cash paid for acquisitions, net of cash acquired
|
—
|
|
|
(723,944
|
)
|
||
Net payment from settlement of foreign currency forward purchase contracts related to an acquisition
|
—
|
|
|
(18,686
|
)
|
||
Insurance proceeds for the replacement of assets
|
2,418
|
|
|
1,421
|
|
||
Proceeds from disposition of property and equipment
|
292
|
|
|
1,082
|
|
||
Net cash used in investing activities
|
(37,054
|
)
|
|
(790,025
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Principal payments on revolving line-of-credit, long-term debt and capital lease obligations
|
(143,684
|
)
|
|
(125,307
|
)
|
||
Proceeds from revolving line-of-credit and long-term borrowings
|
104,316
|
|
|
892,805
|
|
||
Debt amendment/issuance costs
|
—
|
|
|
(5,933
|
)
|
||
Proceeds from employee stock purchases
|
2,668
|
|
|
2,727
|
|
||
Treasury stock purchases
|
(1,974
|
)
|
|
(2,847
|
)
|
||
Excess tax benefit from share-based compensation
|
53
|
|
|
834
|
|
||
Net cash (used in)/provided by financing activities
|
(38,621
|
)
|
|
762,279
|
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
780
|
|
|
(3,555
|
)
|
||
INCREASE IN CASH AND CASH EQUIVALENTS
|
3,172
|
|
|
52,693
|
|
||
CASH AND CASH EQUIVALENTS, beginning of period
|
35,941
|
|
|
59,727
|
|
||
CASH AND CASH EQUIVALENTS, end of period
|
$
|
39,113
|
|
|
$
|
112,420
|
|
|
|
GBP
|
|
USD
|
||||
Cash consideration
|
|
£
|
492,083
|
|
|
$
|
733,006
|
|
Deferred consideration
|
|
24,200
|
|
|
36,048
|
|
||
Total consideration
|
|
£
|
516,283
|
|
|
$
|
769,054
|
|
|
|
Three Months Ended
|
||
|
|
March 31,
|
||
|
|
2015
|
||
Operating revenues
|
|
$
|
553,649
|
|
Net income
|
|
$
|
47,789
|
|
Basic earnings per common share
|
|
$
|
0.86
|
|
Diluted earnings per common share
|
|
$
|
0.84
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
Numerator:
|
|
|
|
||||
Net income
|
$
|
27,019
|
|
|
$
|
23,904
|
|
Denominators:
|
|
|
|
||||
Weighted average Class A common shares outstanding - Basic
|
57,025
|
|
|
55,826
|
|
||
Weighted average Class B common shares outstanding
|
793
|
|
|
1,002
|
|
||
Dilutive effect of employee stock-based awards
|
146
|
|
|
293
|
|
||
Weighted average shares - Diluted
|
57,964
|
|
|
57,121
|
|
||
|
|
|
|
||||
Basic earnings per common share
|
$
|
0.47
|
|
|
$
|
0.43
|
|
Diluted earnings per common share
|
$
|
0.47
|
|
|
$
|
0.42
|
|
|
Three Months Ended
|
||||
|
March 31,
|
||||
|
2016
|
|
2015
|
||
Antidilutive shares
|
1,311
|
|
|
503
|
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Accounts receivable - trade
|
$
|
340,331
|
|
|
$
|
339,100
|
|
Accounts receivable - grants from outside parties
|
13,687
|
|
|
22,997
|
|
||
Accounts receivable - insurance and other third-party claims
|
25,074
|
|
|
26,574
|
|
||
Total accounts receivable
|
379,092
|
|
|
388,671
|
|
||
Less: Allowance for doubtful accounts
|
(16,659
|
)
|
|
(6,213
|
)
|
||
Accounts receivable, net
|
$
|
362,433
|
|
|
$
|
382,458
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2016
|
|
2015
|
||||
Amortization of deferred grants
|
$
|
2,949
|
|
|
$
|
2,799
|
|
|
|
Local Currency
|
|
United States Dollar Equivalent
|
|
Interest Rate
|
|||||
United States dollar
|
|
$
|
1,737,000
|
|
|
$
|
1,737,000
|
|
|
2.43
|
%
|
Australian dollar
|
|
A$
|
276,627
|
|
|
$
|
212,228
|
|
|
4.14
|
%
|
British pound
|
|
£
|
101,681
|
|
|
$
|
146,350
|
|
|
2.51
|
%
|
Composition
|
|
March 31, 2016
|
||
Total available borrowing capacity
|
|
$
|
625,000
|
|
Outstanding revolving loans
|
|
$
|
57,937
|
|
Outstanding letter of credit guarantees
|
|
$
|
5,123
|
|
Unused borrowing capacity
|
|
$
|
561,940
|
|
|
|
Local Currency
|
|
United States Dollar Equivalent
|
|
Interest Rate
|
|||||
British pound (swingline loan)
|
|
£
|
1,400
|
|
|
$
|
2,015
|
|
|
2.48
|
%
|
British pound
|
|
£
|
18,000
|
|
|
$
|
25,907
|
|
|
2.51
|
%
|
Canadian dollar
|
|
C$
|
23,000
|
|
|
$
|
17,724
|
|
|
2.88
|
%
|
Euro
|
|
€
|
10,800
|
|
|
$
|
12,292
|
|
|
2.00
|
%
|
|
|
|
|
Notional Amount
|
|
|
|
|
||||
Effective Date
|
|
Expiration Date
|
|
Date
|
|
Amount
|
|
Pay Fixed Rate
|
|
Receive Variable Rate
|
||
9/30/2015
|
|
9/30/2016
|
|
9/30/2015
|
|
$
|
350,000
|
|
|
0.93%
|
|
1-month LIBOR
|
9/30/2016
|
|
9/30/2026
|
|
9/30/2026
|
|
$
|
100,000
|
|
|
2.79%
|
|
3-month LIBOR
|
9/30/2016
|
|
9/30/2026
|
|
9/30/2026
|
|
$
|
100,000
|
|
|
2.79%
|
|
3-month LIBOR
|
9/30/2016
|
|
9/30/2026
|
|
9/30/2026
|
|
$
|
100,000
|
|
|
2.80%
|
|
3-month LIBOR
|
Effective Date
|
|
Settlement Date
|
|
Notional Amount
|
|
Exchange Rate
|
3/25/2015
|
|
3/31/2020
|
|
£60,000
|
|
1.50
|
3/25/2015
|
|
3/31/2020
|
|
£60,000
|
|
1.51
|
6/30/2015
|
|
3/31/2020
|
|
£2,035
|
|
1.57
|
9/30/2015
|
|
3/31/2020
|
|
£1,846
|
|
1.51
|
12/31/2015
|
|
3/31/2020
|
|
£1,873
|
|
1.48
|
3/31/2016
|
|
3/31/2020
|
|
£1,881
|
|
1.45
|
|
|
|
Fair Value
|
||||||
|
Balance Sheet Location
|
|
March 31,
2016 |
|
December 31, 2015
|
||||
Asset Derivatives:
|
|
|
|
|
|
||||
Derivatives designated as hedges:
|
|
|
|
|
|
||||
British pound forward contracts
|
Other assets, net
|
|
$
|
5,706
|
|
|
$
|
1,530
|
|
Total derivatives designated as hedges
|
|
|
$
|
5,706
|
|
|
$
|
1,530
|
|
|
|
|
|
|
|
||||
Liability Derivatives:
|
|
|
|
|
|
||||
Derivatives designated as hedges:
|
|
|
|
|
|
||||
Interest rate swap agreements
|
Accrued expenses
|
|
$
|
27,992
|
|
|
$
|
846
|
|
Interest rate swap agreements
|
Other long-term liabilities
|
|
—
|
|
|
11,655
|
|
||
British pound forward contracts
|
Other long-term liabilities
|
|
18
|
|
|
—
|
|
||
Total liability derivatives designated as hedges
|
|
|
$
|
28,010
|
|
|
$
|
12,501
|
|
|
|
Total Cash Flow Hedge OCI Activity,
Net of Tax
|
||||||
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Derivatives Designated as Cash Flow Hedges:
|
|
|
|
|
||||
Effective portion of changes in fair value recognized in OCI:
|
|
|
|
|
||||
Interest rate swap agreements
|
|
$
|
(9,302
|
)
|
|
$
|
(5,839
|
)
|
British pound forward contracts
|
|
2,503
|
|
|
(472
|
)
|
||
|
|
$
|
(6,799
|
)
|
|
$
|
(6,311
|
)
|
|
|
|
|
Amount Recognized in Earnings
|
||||||
|
|
|
|
Three Months Ended
|
||||||
|
|
Location of Amount Recognized in Earnings
|
|
March 31,
|
||||||
|
|
2016
|
|
2015
|
||||||
Derivative Instruments Not Designated as Hedges:
|
|
|
|
|
|
|
||||
British pound forward purchase contracts
|
|
Loss on settlement of foreign currency forward purchase contracts
|
|
$
|
—
|
|
|
$
|
(18,686
|
)
|
|
|
|
|
$
|
—
|
|
|
$
|
(18,686
|
)
|
•
|
Level 1 - Quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date.
|
•
|
Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable market data.
|
•
|
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable.
|
•
|
Financial Instruments Carried at Fair Value:
Derivative instruments are recorded on the consolidated balance sheets as either assets or liabilities measured at fair value. During the reporting period, the Company's derivative financial instruments consisted of interest rate swap agreements and foreign currency forward contracts. The Company estimated the fair value of its interest rate swap agreements based on Level 2 valuation inputs, including fixed interest rates, LIBOR implied forward interest rates and the remaining time to maturity. The Company estimated the fair value of its British pound forward contracts based on Level 2 valuation inputs, including LIBOR implied forward interest rates, British pound LIBOR implied forward interest rates and the remaining time to maturity.
|
•
|
The Company's recurring fair value measurements using significant unobservable inputs (Level 3) relate solely to the Company's deferred consideration from the Freightliner acquisition. The fair value of the deferred consideration liability was estimated by discounting, to present value, contingent payments expected to be made.
|
•
|
Financial Instruments Carried at Historical Cost:
Since the Company's long-term debt is not actively traded, fair value was estimated using a discounted cash flow analysis based on Level 2 valuation inputs, including borrowing rates the Company believes are currently available to it for loans with similar terms and maturities.
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
Financial instruments carried at fair value using Level 2 inputs:
|
|
|
|
||||
Financial assets carried at fair value:
|
|
|
|
||||
British pound forward contracts
|
$
|
5,706
|
|
|
$
|
1,530
|
|
Total financial assets carried at fair value
|
$
|
5,706
|
|
|
$
|
1,530
|
|
Financial liabilities carried at fair value:
|
|
|
|
||||
Interest rate swap agreements
|
$
|
27,992
|
|
|
$
|
12,501
|
|
British pound forward contracts
|
18
|
|
|
—
|
|
||
Total financial liabilities carried at fair value
|
$
|
28,010
|
|
|
$
|
12,501
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
GBP
|
|
USD
|
|
GBP
|
|
USD
|
||||||||
Financial instrument carried at fair value using Level 3 inputs:
|
|
|
|
|
|
|
|
||||||||
Financial liabilities carried at fair value:
|
|
|
|
|
|
|
|
||||||||
Accrued deferred consideration
|
£
|
24,266
|
|
|
$
|
34,926
|
|
|
£
|
24,200
|
|
|
$
|
35,680
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Financial liabilities carried at historical cost:
|
|
|
|
|
|
|
|
|
||||||||
United States term loan
|
|
$
|
1,721,760
|
|
|
$
|
1,721,971
|
|
|
$
|
1,755,736
|
|
|
$
|
1,750,040
|
|
Australian term loan
|
|
210,508
|
|
|
211,299
|
|
|
209,242
|
|
|
210,128
|
|
||||
U.K. term loan
|
|
146,039
|
|
|
145,734
|
|
|
149,500
|
|
|
150,030
|
|
||||
Revolving credit facility
|
|
53,088
|
|
|
57,663
|
|
|
39,737
|
|
|
44,833
|
|
||||
Other debt
|
|
3,092
|
|
|
3,068
|
|
|
3,123
|
|
|
3,090
|
|
||||
Total
|
|
$
|
2,134,487
|
|
|
$
|
2,139,735
|
|
|
$
|
2,157,338
|
|
|
$
|
2,158,121
|
|
|
Three Months Ended
|
||
|
March 31, 2016
|
||
Service cost
|
$
|
3,427
|
|
Interest cost
|
3,188
|
|
|
Expected return on plan assets
|
(4,074
|
)
|
|
Net periodic benefit cost
|
$
|
2,541
|
|
|
Foreign Currency Translation Adjustment
|
|
Defined Benefit Plans
|
|
Net Unrealized Gain/(Loss) on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance, December 31, 2015
|
$
|
(156,146
|
)
|
|
$
|
11,005
|
|
|
$
|
(8,316
|
)
|
|
$
|
(153,457
|
)
|
Other comprehensive loss before reclassifications
|
31,121
|
|
|
—
|
|
|
(9,261
|
)
|
|
21,860
|
|
||||
Amounts reclassified from accumulated other comprehensive loss, net of tax (provision)/benefit of $(520) and $113, respectively
|
—
|
|
|
1,923
|
|
(a)
|
(170
|
)
|
(b)
|
1,753
|
|
||||
Current period change
|
31,121
|
|
|
1,923
|
|
|
(9,431
|
)
|
|
23,613
|
|
||||
Balance, March 31, 2016
|
$
|
(125,025
|
)
|
|
$
|
12,928
|
|
|
$
|
(17,747
|
)
|
|
$
|
(129,844
|
)
|
|
Foreign Currency Translation Adjustment
|
|
Defined Benefit Plans
|
|
Net Unrealized Gain/(Loss) on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance, December 31, 2014
|
$
|
(70,746
|
)
|
|
$
|
1,405
|
|
|
$
|
(2,911
|
)
|
|
$
|
(72,252
|
)
|
Other comprehensive loss before reclassifications
|
(46,747
|
)
|
|
—
|
|
|
(5,859
|
)
|
|
(52,606
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss, net of tax (provision)/benefit of ($30) and $301, respectively
|
—
|
|
|
53
|
|
(a)
|
(452
|
)
|
(b)
|
(399
|
)
|
||||
Current period change
|
(46,747
|
)
|
|
53
|
|
|
(6,311
|
)
|
|
(53,005
|
)
|
||||
Balance, March 31, 2015
|
$
|
(117,493
|
)
|
|
$
|
1,458
|
|
|
$
|
(9,222
|
)
|
|
$
|
(125,257
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
United States dollar per Australian dollar
|
$
|
0.72
|
|
|
$
|
0.79
|
|
United States dollar per British pound
|
$
|
1.43
|
|
|
$
|
1.51
|
|
United States dollar per Canadian dollar
|
$
|
0.73
|
|
|
$
|
0.81
|
|
United States dollar per Euro
|
$
|
1.10
|
|
|
$
|
1.13
|
|
|
Three Months Ended March 31, 2016
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
$
|
221,825
|
|
|
$
|
24,777
|
|
|
$
|
79,812
|
|
|
$
|
326,414
|
|
Freight-related revenues
|
61,525
|
|
|
25,490
|
|
|
46,443
|
|
|
133,458
|
|
||||
All other revenues
|
16,428
|
|
|
1,531
|
|
|
4,785
|
|
|
22,744
|
|
||||
Total Operating revenues
|
$
|
299,778
|
|
|
$
|
51,798
|
|
|
$
|
131,040
|
|
|
$
|
482,616
|
|
Income/(loss) from operations
|
$
|
69,978
|
|
|
$
|
(11,751
|
)
|
|
$
|
(1,231
|
)
|
|
$
|
56,996
|
|
Depreciation and amortization
|
$
|
36,189
|
|
|
$
|
6,656
|
|
|
$
|
6,485
|
|
|
$
|
49,330
|
|
Interest expense, net
|
$
|
10,465
|
|
|
$
|
2,395
|
|
|
$
|
5,040
|
|
|
$
|
17,900
|
|
Provision for/(benefit from) income taxes
|
$
|
16,009
|
|
|
$
|
(2,525
|
)
|
|
$
|
(676
|
)
|
|
$
|
12,808
|
|
Expenditures for additions to property & equipment, net of grants from outside parties
|
$
|
29,177
|
|
|
$
|
5,187
|
|
|
$
|
5,400
|
|
|
$
|
39,764
|
|
|
Three Months Ended March 31, 2015
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
$
|
243,030
|
|
|
$
|
46,358
|
|
|
$
|
8,821
|
|
|
$
|
298,209
|
|
Freight-related revenues
|
58,061
|
|
|
10,864
|
|
|
9,200
|
|
|
78,125
|
|
||||
All other revenues
|
16,533
|
|
|
2,720
|
|
|
1,443
|
|
|
20,696
|
|
||||
Total Operating revenues
|
$
|
317,624
|
|
|
$
|
59,942
|
|
|
$
|
19,464
|
|
|
$
|
397,030
|
|
Income/(loss) from operations
|
$
|
57,081
|
|
|
$
|
14,236
|
|
|
$
|
1,303
|
|
|
$
|
72,620
|
|
Depreciation and amortization
|
$
|
35,305
|
|
|
$
|
6,226
|
|
|
$
|
686
|
|
|
$
|
42,217
|
|
Interest expense, net
|
$
|
10,773
|
|
|
$
|
2,333
|
|
|
$
|
376
|
|
|
$
|
13,482
|
|
Loss on settlement of foreign currency forward purchase contracts
|
$
|
16,374
|
|
|
$
|
2,312
|
|
|
$
|
—
|
|
|
$
|
18,686
|
|
Provision for/(benefit from) income taxes
|
$
|
14,157
|
|
|
$
|
2,928
|
|
|
$
|
(223
|
)
|
|
$
|
16,862
|
|
Expenditures for additions to property & equipment, net of grants from outside parties
|
$
|
45,270
|
|
|
$
|
4,615
|
|
|
$
|
13
|
|
|
$
|
49,898
|
|
|
March 31, 2016
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Property and equipment, net
|
$
|
3,447,028
|
|
|
$
|
469,722
|
|
|
$
|
313,761
|
|
|
$
|
4,230,511
|
|
|
December 31, 2015
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Property and equipment, net
|
$
|
3,433,669
|
|
|
$
|
465,123
|
|
|
$
|
316,271
|
|
|
$
|
4,215,063
|
|
|
Three Months Ended
|
||||||||||||
|
March 31, 2016
|
|
March 31, 2015
|
||||||||||
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
276,755
|
|
|
57.3
|
%
|
|
$
|
290,419
|
|
|
73.1
|
%
|
Non-United States:
|
|
|
|
|
|
|
|
||||||
Australia
|
$
|
51,798
|
|
|
10.7
|
%
|
|
$
|
59,941
|
|
|
15.1
|
%
|
Canada
|
23,023
|
|
|
4.8
|
%
|
|
27,205
|
|
|
6.9
|
%
|
||
U.K.
|
95,676
|
|
|
19.8
|
%
|
|
9,654
|
|
|
2.4
|
%
|
||
Netherlands
|
24,761
|
|
|
5.2
|
%
|
|
7,433
|
|
|
1.9
|
%
|
||
Other
|
10,603
|
|
|
2.2
|
%
|
|
2,378
|
|
|
0.6
|
%
|
||
Total Non-United States
|
$
|
205,861
|
|
|
42.7
|
%
|
|
$
|
106,611
|
|
|
26.9
|
%
|
Total operating revenues
|
$
|
482,616
|
|
|
100.0
|
%
|
|
$
|
397,030
|
|
|
100.0
|
%
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
Property and equipment located in:
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
3,204,941
|
|
|
75.8
|
%
|
|
$
|
3,202,963
|
|
|
76.0
|
%
|
Non-United States:
|
|
|
|
|
|
|
|
||||||
Australia
|
$
|
469,722
|
|
|
11.0
|
%
|
|
$
|
465,123
|
|
|
11.0
|
%
|
Canada
|
242,088
|
|
|
5.7
|
%
|
|
230,706
|
|
|
5.5
|
%
|
||
U.K.
|
298,792
|
|
|
7.1
|
%
|
|
303,210
|
|
|
7.2
|
%
|
||
Other
|
14,968
|
|
|
0.4
|
%
|
|
13,061
|
|
|
0.3
|
%
|
||
Total Non-United States
|
$
|
1,025,570
|
|
|
24.2
|
%
|
|
$
|
1,012,100
|
|
|
24.0
|
%
|
Total property and equipment, net
|
$
|
4,230,511
|
|
|
100.0
|
%
|
|
$
|
4,215,063
|
|
|
100.0
|
%
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
•
|
Our North American Operations segment includes nine operating regions that serve
41
U.S. states and
four
Canadian provinces. This segment includes
114
short line and regional freight railroads with more than
13,000
track-miles.
|
•
|
Our Australian Operations segment provides rail freight services in South Australia, the Northern Territory and New South Wales. Included in the Australian Operations segment is our operation of the
1,400
-mile Tarcoola-to-Darwin rail line, which is the sole north-south rail corridor outside the coasts and primarily carries intermodal and commodity freight.
|
•
|
Our U.K./European Operations segment includes the majority of the operations of Freightliner Group Limited (Freightliner), which we acquired in March 2015. Freightliner is the United Kingdom's (U.K.) largest rail maritime intermodal operator and the U.K.'s second-largest rail freight company. Our U.K./European Operations segment also includes heavy-haul freight operations in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.
|
|
|
Income/(Loss) Before Taxes Impact
|
|
After-Tax Net Income/(Loss) Impact
|
|
Diluted Earnings/(Loss) Per Common Share Impact
|
||||||
Three Months Ended March 31, 2016
|
|
|
|
|
|
|
||||||
Australia impairment and related costs
|
|
$
|
(21.1
|
)
|
|
$
|
(16.8
|
)
|
|
$
|
(0.29
|
)
|
Business development and related costs
|
|
$
|
(0.5
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
—
|
|
Restructuring costs
|
|
$
|
(1.1
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
(0.01
|
)
|
Net gain on sale of assets
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
Short Line Tax Credit
|
|
$
|
—
|
|
|
$
|
6.3
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
||||||
Three Months Ended March 31, 2015
|
|
|
|
|
|
|
||||||
Loss on settlement of Freightliner acquisition-related foreign currency forward purchase contracts
|
|
$
|
(18.7
|
)
|
|
$
|
(11.6
|
)
|
|
$
|
(0.2
|
)
|
Freightliner acquisition-related costs
|
|
$
|
(12.6
|
)
|
|
$
|
(9.5
|
)
|
|
$
|
(0.17
|
)
|
Credit facility refinancing-related costs
|
|
$
|
(2.0
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(0.02
|
)
|
Australian severance costs
|
|
$
|
(1.7
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
(0.02
|
)
|
Net gain on sale of assets
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
|
GBP
|
|
USD
|
||||
Cash consideration
|
|
£
|
492,083
|
|
|
$
|
733,006
|
|
Deferred consideration
|
|
24,200
|
|
|
36,048
|
|
||
Total consideration
|
|
£
|
516,283
|
|
|
$
|
769,054
|
|
|
Three Months Ended March 31,
|
|
Increase in Total Operations
|
|
Increase/(Decrease) in Existing
Operations
|
|
|
||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||||||||||||
|
Total Operations
|
|
New
Operations
|
|
Existing
Operations
|
|
Total Operations
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Currency Impact
|
||||||||||||||||
Freight revenues
|
$
|
326,414
|
|
|
$
|
73,414
|
|
|
$
|
253,000
|
|
|
$
|
298,209
|
|
|
$
|
28,205
|
|
|
9.5
|
%
|
|
$
|
(45,209
|
)
|
|
(15.2
|
)%
|
|
$
|
(5,815
|
)
|
Freight-related revenues
|
133,458
|
|
|
49,395
|
|
|
84,063
|
|
|
78,125
|
|
|
55,333
|
|
|
70.8
|
%
|
|
5,938
|
|
|
7.6
|
%
|
|
(1,603
|
)
|
|||||||
All other revenues
|
22,744
|
|
|
4,651
|
|
|
18,093
|
|
|
20,696
|
|
|
2,048
|
|
|
9.9
|
%
|
|
(2,603
|
)
|
|
(12.6
|
)%
|
|
(600
|
)
|
|||||||
Total operating revenues
|
$
|
482,616
|
|
|
$
|
127,460
|
|
|
$
|
355,156
|
|
|
$
|
397,030
|
|
|
$
|
85,586
|
|
|
21.6
|
%
|
|
$
|
(41,874
|
)
|
|
(10.5
|
)%
|
|
$
|
(8,018
|
)
|
Carloads
|
681,384
|
|
|
231,791
|
|
|
449,593
|
|
|
502,364
|
|
|
179,020
|
|
|
35.6
|
%
|
|
(52,771
|
)
|
|
(10.5
|
)%
|
|
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease)
|
|
Currency
Impact
|
|
2015 Constant Currency
|
|
Increase/(Decrease)(Constant Currency)
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||||||||
|
Amount
|
|
% of
Operating
Revenues
|
|
Amount
|
|
% of
Operating
Revenues
|
|
|
|
|||||||||||||||||||
Labor and benefits
|
$
|
163,114
|
|
|
33.8
|
%
|
|
$
|
132,118
|
|
|
33.3
|
%
|
|
$
|
30,996
|
|
|
$
|
(2,578
|
)
|
|
$
|
129,540
|
|
|
$
|
33,574
|
|
Equipment rents
|
38,430
|
|
|
8.0
|
%
|
|
22,032
|
|
|
5.6
|
%
|
|
16,398
|
|
|
(353
|
)
|
|
21,679
|
|
|
16,751
|
|
||||||
Purchased services
|
46,502
|
|
|
9.6
|
%
|
|
24,381
|
|
|
6.1
|
%
|
|
22,121
|
|
|
(685
|
)
|
|
23,696
|
|
|
22,806
|
|
||||||
Depreciation and amortization
|
49,330
|
|
|
10.2
|
%
|
|
42,217
|
|
|
10.6
|
%
|
|
7,113
|
|
|
(1,040
|
)
|
|
41,177
|
|
|
8,153
|
|
||||||
Diesel fuel used in train operations
|
25,466
|
|
|
5.2
|
%
|
|
29,697
|
|
|
7.5
|
%
|
|
(4,231
|
)
|
|
(690
|
)
|
|
29,007
|
|
|
(3,541
|
)
|
||||||
Electricity used in train operations
|
3,365
|
|
|
0.7
|
%
|
|
389
|
|
|
0.1
|
%
|
|
2,976
|
|
|
(13
|
)
|
|
376
|
|
|
2,989
|
|
||||||
Casualties and insurance
|
10,120
|
|
|
2.1
|
%
|
|
8,523
|
|
|
2.1
|
%
|
|
1,597
|
|
|
(186
|
)
|
|
8,337
|
|
|
1,783
|
|
||||||
Materials
|
21,591
|
|
|
4.5
|
%
|
|
18,695
|
|
|
4.7
|
%
|
|
2,896
|
|
|
(328
|
)
|
|
18,367
|
|
|
3,224
|
|
||||||
Trackage rights
|
20,576
|
|
|
4.3
|
%
|
|
13,333
|
|
|
3.4
|
%
|
|
7,243
|
|
|
(439
|
)
|
|
12,894
|
|
|
7,682
|
|
||||||
Net loss/(gain) on sale and impairment of assets
|
12,825
|
|
|
2.7
|
%
|
|
(317
|
)
|
|
(0.1
|
)%
|
|
13,142
|
|
|
8
|
|
|
(309
|
)
|
|
13,134
|
|
||||||
Restructuring costs
|
1,127
|
|
|
0.2
|
%
|
|
—
|
|
|
—
|
%
|
|
1,127
|
|
|
—
|
|
|
—
|
|
|
1,127
|
|
||||||
Other expenses
|
33,174
|
|
|
6.9
|
%
|
|
33,342
|
|
|
8.4
|
%
|
|
(168
|
)
|
|
(549
|
)
|
|
32,793
|
|
|
381
|
|
||||||
Total operating expenses
|
$
|
425,620
|
|
|
88.2
|
%
|
|
$
|
324,410
|
|
|
81.7
|
%
|
|
$
|
101,210
|
|
|
$
|
(6,853
|
)
|
|
$
|
317,557
|
|
|
$
|
108,063
|
|
|
|
Three Months Ended March 31, 2016
|
||||||||||||||
|
|
North
American
Operations
|
|
Australian
Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
|
$
|
221,825
|
|
|
$
|
24,777
|
|
|
$
|
79,812
|
|
|
$
|
326,414
|
|
Freight-related revenues
|
|
61,525
|
|
|
25,490
|
|
|
46,443
|
|
|
133,458
|
|
||||
All other revenues
|
|
16,428
|
|
|
1,531
|
|
|
4,785
|
|
|
22,744
|
|
||||
Total operating revenues
|
|
$
|
299,778
|
|
|
$
|
51,798
|
|
|
$
|
131,040
|
|
|
$
|
482,616
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Labor and benefits
|
|
$
|
102,590
|
|
|
$
|
15,768
|
|
|
$
|
44,756
|
|
|
$
|
163,114
|
|
Equipment rents
|
|
15,056
|
|
|
1,695
|
|
|
21,679
|
|
|
38,430
|
|
||||
Purchased services
|
|
15,701
|
|
|
5,251
|
|
|
25,550
|
|
|
46,502
|
|
||||
Depreciation and amortization
|
|
36,189
|
|
|
6,656
|
|
|
6,485
|
|
|
49,330
|
|
||||
Diesel fuel used in train operations
|
|
13,524
|
|
|
4,037
|
|
|
7,905
|
|
|
25,466
|
|
||||
Electricity used in train operations
|
|
—
|
|
|
—
|
|
|
3,365
|
|
|
3,365
|
|
||||
Casualties and insurance
|
|
7,240
|
|
|
1,535
|
|
|
1,345
|
|
|
10,120
|
|
||||
Materials
|
|
13,000
|
|
|
2,419
|
|
|
6,172
|
|
|
21,591
|
|
||||
Trackage rights
|
|
8,867
|
|
|
2,289
|
|
|
9,420
|
|
|
20,576
|
|
||||
Net (gain)/loss on sale and impairment of assets
|
|
(159
|
)
|
|
12,982
|
|
|
2
|
|
|
12,825
|
|
||||
Restructuring costs
|
|
359
|
|
|
693
|
|
|
75
|
|
|
1,127
|
|
||||
Other expenses
|
|
17,433
|
|
|
10,224
|
|
|
5,517
|
|
|
33,174
|
|
||||
Total operating expenses
|
|
229,800
|
|
|
63,549
|
|
|
132,271
|
|
|
425,620
|
|
||||
Income/(loss) from operations
|
|
$
|
69,978
|
|
|
$
|
(11,751
|
)
|
|
$
|
(1,231
|
)
|
|
$
|
56,996
|
|
Operating ratio
|
|
76.7
|
%
|
|
122.7
|
%
|
|
100.9
|
%
|
|
88.2
|
%
|
||||
Interest expense, net
|
|
$
|
10,465
|
|
|
$
|
2,395
|
|
|
$
|
5,040
|
|
|
$
|
17,900
|
|
Provision for/(benefit from) income taxes
|
|
$
|
16,009
|
|
|
$
|
(2,525
|
)
|
|
$
|
(676
|
)
|
|
$
|
12,808
|
|
Carloads
|
|
383,192
|
|
|
46,223
|
|
|
251,969
|
|
|
681,384
|
|
||||
Expenditures for additions to property & equipment, net of grants from outside parties
|
|
$
|
29,177
|
|
|
$
|
5,187
|
|
|
$
|
5,400
|
|
|
$
|
39,764
|
|
|
|
Three Months Ended March 31, 2015
|
||||||||||||||
|
|
North
American Operations |
|
Australian
Operations |
|
U.K./European Operations
|
|
Total
Operations |
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
|
$
|
243,030
|
|
|
$
|
46,358
|
|
|
$
|
8,821
|
|
|
$
|
298,209
|
|
Freight-related revenues
|
|
58,061
|
|
|
10,864
|
|
|
9,200
|
|
|
78,125
|
|
||||
All other revenues
|
|
16,533
|
|
|
2,720
|
|
|
1,443
|
|
|
20,696
|
|
||||
Total operating revenues
|
|
$
|
317,624
|
|
|
$
|
59,942
|
|
|
$
|
19,464
|
|
|
$
|
397,030
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Labor and benefits
|
|
109,451
|
|
|
17,384
|
|
|
5,283
|
|
|
132,118
|
|
||||
Equipment rents
|
|
17,786
|
|
|
2,186
|
|
|
2,060
|
|
|
22,032
|
|
||||
Purchased services
|
|
14,129
|
|
|
5,040
|
|
|
5,212
|
|
|
24,381
|
|
||||
Depreciation and amortization
|
|
35,305
|
|
|
6,226
|
|
|
686
|
|
|
42,217
|
|
||||
Diesel fuel used in train operations
|
|
24,025
|
|
|
3,681
|
|
|
1,991
|
|
|
29,697
|
|
||||
Electricity used in train operations
|
|
—
|
|
|
—
|
|
|
389
|
|
|
389
|
|
||||
Casualties and insurance
|
|
6,455
|
|
|
1,881
|
|
|
187
|
|
|
8,523
|
|
||||
Materials
|
|
16,010
|
|
|
2,225
|
|
|
460
|
|
|
18,695
|
|
||||
Trackage rights
|
|
6,544
|
|
|
4,996
|
|
|
1,793
|
|
|
13,333
|
|
||||
Net gain on sale of assets
|
|
(297
|
)
|
|
(6
|
)
|
|
(14
|
)
|
|
(317
|
)
|
||||
Other expenses
|
|
31,135
|
|
|
2,093
|
|
|
114
|
|
|
33,342
|
|
||||
Total operating expenses
|
|
260,543
|
|
|
45,706
|
|
|
18,161
|
|
|
324,410
|
|
||||
Income from operations
|
|
$
|
57,081
|
|
|
$
|
14,236
|
|
|
$
|
1,303
|
|
|
$
|
72,620
|
|
Operating ratio
|
|
82.0
|
%
|
|
76.3
|
%
|
|
93.3
|
%
|
|
81.7
|
%
|
||||
Interest expense, net
|
|
$
|
10,773
|
|
|
$
|
2,333
|
|
|
$
|
376
|
|
|
$
|
13,482
|
|
Loss on settlement of foreign currency forward purchase contracts
|
|
$
|
16,374
|
|
|
$
|
2,312
|
|
|
$
|
—
|
|
|
$
|
18,686
|
|
Provision for/(benefit from) income taxes
|
|
$
|
14,157
|
|
|
$
|
2,928
|
|
|
$
|
(223
|
)
|
|
$
|
16,862
|
|
Carloads
|
|
422,713
|
|
|
54,024
|
|
|
25,627
|
|
|
502,364
|
|
||||
Expenditures for additions to property & equipment, net of grants from outside parties
|
|
$
|
45,270
|
|
|
$
|
4,615
|
|
|
$
|
13
|
|
|
$
|
49,898
|
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|||||||||||||
|
2016
|
|
2015
|
|
Amount
|
|
%
|
|
||||||||||
Freight revenues
|
$
|
221,825
|
|
|
$
|
243,030
|
|
|
$
|
(21,205
|
)
|
|
(8.7
|
)%
|
|
$
|
(1,756
|
)
|
Freight-related revenues
|
61,525
|
|
|
58,061
|
|
|
3,464
|
|
|
6.0
|
%
|
|
(584
|
)
|
||||
All other revenues
|
16,428
|
|
|
16,533
|
|
|
(105
|
)
|
|
(0.6
|
)%
|
|
(303
|
)
|
||||
Total operating revenues
|
$
|
299,778
|
|
|
$
|
317,624
|
|
|
$
|
(17,846
|
)
|
|
(5.6
|
)%
|
|
$
|
(2,643
|
)
|
Carloads
|
383,192
|
|
|
422,713
|
|
|
(39,521
|
)
|
|
(9.3
|
)%
|
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight
Revenues Per
Carload
|
||||||||||||||||||||||||||||
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015*
|
|
2016
|
|
2015
|
|
|||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2016
|
|
2015*
|
|||||||||||||||
Agricultural Products
|
$
|
28,056
|
|
|
12.7
|
%
|
|
$
|
34,094
|
|
|
14.1
|
%
|
|
56,015
|
|
|
14.6
|
%
|
|
58,337
|
|
|
13.8
|
%
|
|
$
|
501
|
|
|
$
|
584
|
|
|
Autos & Auto Parts
|
4,035
|
|
|
1.8
|
%
|
|
4,551
|
|
|
1.9
|
%
|
|
6,806
|
|
|
1.8
|
%
|
|
7,223
|
|
|
1.7
|
%
|
|
593
|
|
|
630
|
|
|||||
Chemicals & Plastics
|
33,748
|
|
|
15.2
|
%
|
|
35,613
|
|
|
14.8
|
%
|
|
44,359
|
|
|
11.6
|
%
|
|
46,043
|
|
|
10.9
|
%
|
|
761
|
|
|
773
|
|
|||||
Coal & Coke
|
16,826
|
|
|
7.6
|
%
|
|
26,918
|
|
|
11.2
|
%
|
|
48,678
|
|
|
12.7
|
%
|
|
79,612
|
|
|
18.8
|
%
|
|
346
|
|
|
338
|
|
|||||
Food & Kindred Products
|
8,434
|
|
|
3.8
|
%
|
|
9,228
|
|
|
3.8
|
%
|
|
14,964
|
|
|
3.9
|
%
|
|
15,888
|
|
|
3.8
|
%
|
|
564
|
|
|
581
|
|
|||||
Intermodal
|
1
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
12
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
83
|
|
|
N/A
|
|
|||||
Lumber & Forest Products
|
20,870
|
|
|
9.4
|
%
|
|
19,431
|
|
|
8.1
|
%
|
|
34,832
|
|
|
9.1
|
%
|
|
32,589
|
|
|
7.7
|
%
|
|
599
|
|
|
596
|
|
|||||
Metallic Ores
|
5,062
|
|
|
2.3
|
%
|
|
5,127
|
|
|
2.1
|
%
|
|
6,225
|
|
|
1.6
|
%
|
|
6,365
|
|
|
1.5
|
%
|
|
813
|
|
|
805
|
|
|||||
Metals
|
27,043
|
|
|
12.2
|
%
|
|
26,149
|
|
|
10.8
|
%
|
|
35,905
|
|
|
9.4
|
%
|
|
34,589
|
|
|
8.2
|
%
|
|
753
|
|
|
756
|
|
|||||
Minerals & Stone
|
24,794
|
|
|
11.2
|
%
|
|
27,401
|
|
|
11.3
|
%
|
|
43,681
|
|
|
11.4
|
%
|
|
47,384
|
|
|
11.2
|
%
|
|
568
|
|
|
578
|
|
|||||
Petroleum Products
|
18,273
|
|
|
8.2
|
%
|
|
17,644
|
|
|
7.3
|
%
|
|
25,989
|
|
|
6.8
|
%
|
|
27,057
|
|
|
6.4
|
%
|
|
703
|
|
|
652
|
|
|||||
Pulp & Paper
|
26,128
|
|
|
11.8
|
%
|
|
27,101
|
|
|
11.2
|
%
|
|
41,168
|
|
|
10.7
|
%
|
|
42,765
|
|
|
10.1
|
%
|
|
635
|
|
|
634
|
|
|||||
Waste
|
3,788
|
|
|
1.7
|
%
|
|
3,288
|
|
|
1.4
|
%
|
|
8,286
|
|
|
2.2
|
%
|
|
7,293
|
|
|
1.7
|
%
|
|
457
|
|
|
451
|
|
|||||
Other
|
4,767
|
|
|
2.1
|
%
|
|
4,729
|
|
|
2.0
|
%
|
|
16,272
|
|
|
4.2
|
%
|
|
17,568
|
|
|
4.2
|
%
|
|
293
|
|
|
269
|
|
|||||
Total
|
$
|
221,825
|
|
|
100.0
|
%
|
|
$
|
241,274
|
|
|
100.0
|
%
|
|
383,192
|
|
|
100.0
|
%
|
|
422,713
|
|
|
100.0
|
%
|
|
$
|
579
|
|
|
$
|
571
|
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|
2015 Constant Currency
|
|
Increase/(Decrease) in Total Operations Constant Currency
|
||||||||||||||
Commodity Group
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||
Agricultural Products
|
$
|
28,056
|
|
|
$
|
34,377
|
|
|
$
|
(6,321
|
)
|
|
$
|
(283
|
)
|
|
$
|
34,094
|
|
|
$
|
(6,038
|
)
|
Autos & Auto Parts
|
4,035
|
|
|
4,624
|
|
|
(589
|
)
|
|
(73
|
)
|
|
4,551
|
|
|
(516
|
)
|
||||||
Chemicals & Plastics
|
33,748
|
|
|
35,885
|
|
|
(2,137
|
)
|
|
(272
|
)
|
|
35,613
|
|
|
(1,865
|
)
|
||||||
Coal & Coke
|
16,826
|
|
|
26,968
|
|
|
(10,142
|
)
|
|
(50
|
)
|
|
26,918
|
|
|
(10,092
|
)
|
||||||
Food & Kindred Products
|
8,434
|
|
|
9,243
|
|
|
(809
|
)
|
|
(15
|
)
|
|
9,228
|
|
|
(794
|
)
|
||||||
Intermodal
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Lumber & Forest Products
|
20,870
|
|
|
19,497
|
|
|
1,373
|
|
|
(66
|
)
|
|
19,431
|
|
|
1,439
|
|
||||||
Metallic Ores
|
5,062
|
|
|
5,211
|
|
|
(149
|
)
|
|
(84
|
)
|
|
5,127
|
|
|
(65
|
)
|
||||||
Metals
|
27,043
|
|
|
26,398
|
|
|
645
|
|
|
(249
|
)
|
|
26,149
|
|
|
894
|
|
||||||
Minerals & Stone
|
24,794
|
|
|
27,477
|
|
|
(2,683
|
)
|
|
(76
|
)
|
|
27,401
|
|
|
(2,607
|
)
|
||||||
Petroleum Products
|
18,273
|
|
|
17,858
|
|
|
415
|
|
|
(214
|
)
|
|
17,644
|
|
|
629
|
|
||||||
Pulp & Paper
|
26,128
|
|
|
27,422
|
|
|
(1,294
|
)
|
|
(321
|
)
|
|
27,101
|
|
|
(973
|
)
|
||||||
Waste
|
3,788
|
|
|
3,295
|
|
|
493
|
|
|
(7
|
)
|
|
3,288
|
|
|
500
|
|
||||||
Other
|
4,767
|
|
|
4,775
|
|
|
(8
|
)
|
|
(46
|
)
|
|
4,729
|
|
|
38
|
|
||||||
Total freight revenues
|
$
|
221,825
|
|
|
$
|
243,030
|
|
|
$
|
(21,205
|
)
|
|
$
|
(1,756
|
)
|
|
$
|
241,274
|
|
|
$
|
(19,449
|
)
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
|
Increase/(Decrease) (Constant Currency)
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
|
|
Currency
Impact
|
|
2015 Constant Currency
|
|
|||||||||||||||||||
|
Amount
|
|
% of
Operating
Revenues
|
|
Amount
|
|
% of
Operating
Revenues
|
|
Increase/(Decrease)
|
|
|
|
|||||||||||||||||
Labor and benefits
|
$
|
102,590
|
|
|
34.2
|
%
|
|
$
|
109,451
|
|
|
34.5
|
%
|
|
$
|
(6,861
|
)
|
|
$
|
(891
|
)
|
|
$
|
108,560
|
|
|
$
|
(5,970
|
)
|
Equipment rents
|
15,056
|
|
|
5.1
|
%
|
|
17,786
|
|
|
5.6
|
%
|
|
(2,730
|
)
|
|
(123
|
)
|
|
17,663
|
|
|
(2,607
|
)
|
||||||
Purchased services
|
15,701
|
|
|
5.2
|
%
|
|
14,129
|
|
|
4.4
|
%
|
|
1,572
|
|
|
(172
|
)
|
|
13,957
|
|
|
1,744
|
|
||||||
Depreciation and amortization
|
36,189
|
|
|
12.1
|
%
|
|
35,305
|
|
|
11.1
|
%
|
|
884
|
|
|
(517
|
)
|
|
34,788
|
|
|
1,401
|
|
||||||
Diesel fuel used in train operations
|
13,524
|
|
|
4.5
|
%
|
|
24,025
|
|
|
7.6
|
%
|
|
(10,501
|
)
|
|
(341
|
)
|
|
23,684
|
|
|
(10,160
|
)
|
||||||
Casualties and insurance
|
7,240
|
|
|
2.4
|
%
|
|
6,455
|
|
|
2.0
|
%
|
|
785
|
|
|
(38
|
)
|
|
6,417
|
|
|
823
|
|
||||||
Materials
|
13,000
|
|
|
4.4
|
%
|
|
16,010
|
|
|
5.0
|
%
|
|
(3,010
|
)
|
|
(136
|
)
|
|
15,874
|
|
|
(2,874
|
)
|
||||||
Trackage rights
|
8,867
|
|
|
3.0
|
%
|
|
6,544
|
|
|
2.1
|
%
|
|
2,323
|
|
|
(6
|
)
|
|
6,538
|
|
|
2,329
|
|
||||||
Net gain on sale of assets
|
(159
|
)
|
|
(0.1
|
)%
|
|
(297
|
)
|
|
(0.1
|
)%
|
|
138
|
|
|
8
|
|
|
(289
|
)
|
|
130
|
|
||||||
Restructuring costs
|
359
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
|
359
|
|
|
—
|
|
|
—
|
|
|
359
|
|
||||||
Other expenses
|
17,433
|
|
|
5.8
|
%
|
|
31,135
|
|
|
9.8
|
%
|
|
(13,702
|
)
|
|
(136
|
)
|
|
30,999
|
|
|
(13,566
|
)
|
||||||
Total operating expenses
|
$
|
229,800
|
|
|
76.7
|
%
|
|
$
|
260,543
|
|
|
82.0
|
%
|
|
$
|
(30,743
|
)
|
|
$
|
(2,352
|
)
|
|
$
|
258,191
|
|
|
$
|
(28,391
|
)
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease) in Total Operations
|
|
Increase/(Decrease) in Existing
Operations
|
|
|
||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||||||||||||
|
Total Operations
|
|
New
Operations
|
|
Existing
Operations
|
|
Total Operations
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Currency Impact
|
||||||||||||||||
Freight revenues
|
$
|
24,777
|
|
|
$
|
—
|
|
|
$
|
24,777
|
|
|
$
|
46,358
|
|
|
$
|
(21,581
|
)
|
|
(46.6
|
)%
|
|
$
|
(21,581
|
)
|
|
(46.6
|
)%
|
|
$
|
(3,781
|
)
|
Freight-related revenues
|
25,490
|
|
|
10,906
|
|
|
14,584
|
|
|
10,864
|
|
|
14,626
|
|
|
134.6
|
%
|
|
3,720
|
|
|
34.2
|
%
|
|
(860
|
)
|
|||||||
All other revenues
|
1,531
|
|
|
28
|
|
|
1,503
|
|
|
2,720
|
|
|
(1,189
|
)
|
|
(43.7
|
)%
|
|
(1,217
|
)
|
|
(44.7
|
)%
|
|
(228
|
)
|
|||||||
Total operating revenues
|
$
|
51,798
|
|
|
$
|
10,934
|
|
|
$
|
40,864
|
|
|
$
|
59,942
|
|
|
$
|
(8,144
|
)
|
|
(13.6
|
)%
|
|
$
|
(19,078
|
)
|
|
(31.8
|
)%
|
|
$
|
(4,869
|
)
|
Carloads
|
46,223
|
|
|
—
|
|
|
46,223
|
|
|
54,024
|
|
|
(7,801
|
)
|
|
(14.4
|
)%
|
|
(7,801
|
)
|
|
(14.4
|
)%
|
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight Revenues Per
Carload
|
||||||||||||||||||||||||||||
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015*
|
|
2016
|
|
2015
|
|
|||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2016
|
|
2015*
|
|||||||||||||||
Agricultural Products
|
$
|
4,999
|
|
|
20.2
|
%
|
|
$
|
6,222
|
|
|
14.6
|
%
|
|
13,573
|
|
|
29.4
|
%
|
|
14,596
|
|
|
27.0
|
%
|
|
$
|
368
|
|
|
$
|
426
|
|
|
Intermodal
|
14,573
|
|
|
58.8
|
%
|
|
15,846
|
|
|
37.2
|
%
|
|
13,623
|
|
|
29.5
|
%
|
|
14,349
|
|
|
26.6
|
%
|
|
1,070
|
|
|
1,104
|
|
|||||
Metallic Ores
|
3,107
|
|
|
12.5
|
%
|
|
18,459
|
|
|
43.4
|
%
|
|
2,318
|
|
|
5.0
|
%
|
|
10,746
|
|
|
19.9
|
%
|
|
1,340
|
|
|
1,718
|
|
|||||
Minerals & Stone
|
1,879
|
|
|
7.6
|
%
|
|
1,788
|
|
|
4.2
|
%
|
|
16,648
|
|
|
36.0
|
%
|
|
14,270
|
|
|
26.4
|
%
|
|
113
|
|
|
125
|
|
|||||
Petroleum Products
|
219
|
|
|
0.9
|
%
|
|
262
|
|
|
0.6
|
%
|
|
61
|
|
|
0.1
|
%
|
|
63
|
|
|
0.1
|
%
|
|
3,590
|
|
|
4,159
|
|
|||||
Total
|
$
|
24,777
|
|
|
100.0
|
%
|
|
$
|
42,577
|
|
|
100.0
|
%
|
|
46,223
|
|
|
100.0
|
%
|
|
54,024
|
|
|
100.0
|
%
|
|
$
|
536
|
|
|
$
|
788
|
|
|
Three Months Ended March 31,
|
|
Increase/(Decrease)
|
|
Currency Impact
|
|
2015 Constant Currency
|
|
Increase/(Decrease) Constant Currency
|
||||||||||||||
Commodity Group
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||
Agricultural Products
|
$
|
4,999
|
|
|
$
|
6,768
|
|
|
$
|
(1,769
|
)
|
|
$
|
(546
|
)
|
|
$
|
6,222
|
|
|
$
|
(1,223
|
)
|
Intermodal
|
14,573
|
|
|
17,243
|
|
|
(2,670
|
)
|
|
(1,397
|
)
|
|
15,846
|
|
|
(1,273
|
)
|
||||||
Metallic Ores
|
3,107
|
|
|
20,115
|
|
|
(17,008
|
)
|
|
(1,656
|
)
|
|
18,459
|
|
|
(15,352
|
)
|
||||||
Minerals & Stone
|
1,879
|
|
|
1,949
|
|
|
(70
|
)
|
|
(161
|
)
|
|
1,788
|
|
|
91
|
|
||||||
Petroleum Products
|
219
|
|
|
283
|
|
|
(64
|
)
|
|
(21
|
)
|
|
262
|
|
|
(43
|
)
|
||||||
Total freight revenues
|
$
|
24,777
|
|
|
$
|
46,358
|
|
|
$
|
(21,581
|
)
|
|
$
|
(3,781
|
)
|
|
$
|
42,577
|
|
|
$
|
(17,800
|
)
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
Currency Impact
|
|
2015 Constant Currency
|
|
Increase/(Decrease)
(Constant Currency) |
||||||||||||||||||
|
Amount
|
|
% of
Operating Revenues |
|
Amount
|
|
% of
Operating Revenues |
|
|
|
|
||||||||||||||||||
Labor and benefits
|
$
|
15,768
|
|
|
30.5
|
%
|
|
$
|
17,384
|
|
|
29.0
|
%
|
|
$
|
(1,616
|
)
|
|
$
|
(1,492
|
)
|
|
$
|
15,892
|
|
|
$
|
(124
|
)
|
Equipment rents
|
1,695
|
|
|
3.3
|
%
|
|
2,186
|
|
|
3.7
|
%
|
|
(491
|
)
|
|
(177
|
)
|
|
2,009
|
|
|
(314
|
)
|
||||||
Purchased services
|
5,251
|
|
|
10.1
|
%
|
|
5,040
|
|
|
8.4
|
%
|
|
211
|
|
|
(399
|
)
|
|
4,641
|
|
|
610
|
|
||||||
Depreciation and amortization
|
6,656
|
|
|
12.8
|
%
|
|
6,226
|
|
|
10.4
|
%
|
|
430
|
|
|
(501
|
)
|
|
5,725
|
|
|
931
|
|
||||||
Diesel fuel used in train operations
|
4,037
|
|
|
7.8
|
%
|
|
3,681
|
|
|
6.2
|
%
|
|
356
|
|
|
(282
|
)
|
|
3,399
|
|
|
638
|
|
||||||
Electricity used in train operations
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Casualties and insurance
|
1,535
|
|
|
3.0
|
%
|
|
1,881
|
|
|
3.1
|
%
|
|
(346
|
)
|
|
(144
|
)
|
|
1,737
|
|
|
(202
|
)
|
||||||
Materials
|
2,419
|
|
|
4.7
|
%
|
|
2,225
|
|
|
3.7
|
%
|
|
194
|
|
|
(177
|
)
|
|
2,048
|
|
|
371
|
|
||||||
Trackage rights
|
2,289
|
|
|
4.4
|
%
|
|
4,996
|
|
|
8.3
|
%
|
|
(2,707
|
)
|
|
(405
|
)
|
|
4,591
|
|
|
(2,302
|
)
|
||||||
Net loss/(gain) on sale and impairment of assets
|
12,982
|
|
|
25.1
|
%
|
|
(6
|
)
|
|
—
|
%
|
|
12,988
|
|
|
—
|
|
|
(6
|
)
|
|
12,988
|
|
||||||
Restructuring costs
|
693
|
|
|
1.3
|
%
|
|
—
|
|
|
—
|
%
|
|
693
|
|
|
—
|
|
|
—
|
|
|
693
|
|
||||||
Other expenses
|
10,224
|
|
|
19.7
|
%
|
|
2,093
|
|
|
3.5
|
%
|
|
8,131
|
|
|
(178
|
)
|
|
1,915
|
|
|
8,309
|
|
||||||
Total operating expenses
|
$
|
63,549
|
|
|
122.7
|
%
|
|
$
|
45,706
|
|
|
76.3
|
%
|
|
$
|
17,843
|
|
|
$
|
(3,755
|
)
|
|
$
|
41,951
|
|
|
$
|
21,598
|
|
|
Three Months Ended March 31,
|
|
Increase in Total Operations
|
|
Increase/(Decrease) in Existing
Operations
|
|
|
|||||||||||||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||||||||||||||
|
Total Operations
|
|
New
Operations
|
|
Existing
Operations
|
|
Total Operations
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Currency Impact
|
|||||||||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Freight revenues
|
$
|
79,812
|
|
|
$
|
73,414
|
|
|
$
|
6,398
|
|
|
$
|
8,821
|
|
|
$
|
70,991
|
|
|
NM
|
(a)
|
$
|
(2,423
|
)
|
|
(27.5
|
)%
|
|
$
|
(278
|
)
|
Freight-related revenues
|
46,443
|
|
|
38,489
|
|
|
7,954
|
|
|
9,200
|
|
|
37,243
|
|
|
NM
|
|
(1,246
|
)
|
|
(13.5
|
)%
|
|
(159
|
)
|
|||||||
All other revenues
|
4,785
|
|
|
4,623
|
|
|
162
|
|
|
1,443
|
|
|
3,342
|
|
|
NM
|
|
(1,281
|
)
|
|
(88.8
|
)%
|
|
(69
|
)
|
|||||||
Total operating revenues
|
$
|
131,040
|
|
|
$
|
116,526
|
|
|
$
|
14,514
|
|
|
$
|
19,464
|
|
|
$
|
111,576
|
|
|
NM
|
|
$
|
(4,950
|
)
|
|
(25.4
|
)%
|
|
$
|
(506
|
)
|
Carloads
|
251,969
|
|
|
231,791
|
|
|
20,178
|
|
|
25,627
|
|
|
226,342
|
|
|
NM
|
|
(5,449
|
)
|
|
(21.3
|
)%
|
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight
Revenues Per
Carload
|
||||||||||||||||||||||||||||
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015*
|
|
2016
|
|
2015
|
|
|||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2016
|
|
2015*
|
|||||||||||||||
Agricultural Products
|
$
|
343
|
|
|
0.4
|
%
|
|
$
|
11
|
|
|
0.1
|
%
|
|
394
|
|
|
0.1
|
%
|
|
17
|
|
|
0.1
|
%
|
|
$
|
871
|
|
|
$
|
647
|
|
|
Coal & Coke
|
4,344
|
|
|
5.4
|
%
|
|
901
|
|
|
10.7
|
%
|
|
8,063
|
|
|
3.2
|
%
|
|
2,375
|
|
|
9.3
|
%
|
|
539
|
|
|
379
|
|
|||||
Intermodal
|
64,529
|
|
|
80.9
|
%
|
|
6,099
|
|
|
71.4
|
%
|
|
212,095
|
|
|
84.2
|
%
|
|
19,272
|
|
|
75.2
|
%
|
|
304
|
|
|
316
|
|
|||||
Lumber & Forest Products
|
67
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
|
180
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
|
372
|
|
|
N/A
|
||||||
Minerals & Stone
|
10,529
|
|
|
13.2
|
%
|
|
1,532
|
|
|
17.8
|
%
|
|
31,237
|
|
|
12.4
|
%
|
|
3,963
|
|
|
15.4
|
%
|
|
337
|
|
|
387
|
|
|||||
Total
|
$
|
79,812
|
|
|
100.0
|
%
|
|
$
|
8,543
|
|
|
100.0
|
%
|
|
251,969
|
|
|
100.0
|
%
|
|
25,627
|
|
|
100.0
|
%
|
|
$
|
317
|
|
|
$
|
333
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
Increase/(Decrease)
|
|
Currency Impact
|
|
2015 Constant Currency
|
|
Increase/(Decrease)
(Constant Currency) |
||||||||||||||||||
|
Amount
|
|
% of
Operating Revenues |
|
Amount
|
|
% of
Operating Revenues |
|
|
|
|
||||||||||||||||||
Labor and benefits
|
$
|
44,756
|
|
|
34.2
|
%
|
|
$
|
5,283
|
|
|
27.1
|
%
|
|
$
|
39,473
|
|
|
$
|
(195
|
)
|
|
$
|
5,088
|
|
|
$
|
39,668
|
|
Equipment rents
|
21,679
|
|
|
16.5
|
%
|
|
2,060
|
|
|
10.6
|
%
|
|
19,619
|
|
|
(53
|
)
|
|
2,007
|
|
|
19,672
|
|
||||||
Purchased services
|
25,550
|
|
|
19.5
|
%
|
|
5,212
|
|
|
26.8
|
%
|
|
20,338
|
|
|
(114
|
)
|
|
5,098
|
|
|
20,452
|
|
||||||
Depreciation and amortization
|
6,485
|
|
|
4.9
|
%
|
|
686
|
|
|
3.5
|
%
|
|
5,799
|
|
|
(22
|
)
|
|
664
|
|
|
5,821
|
|
||||||
Diesel fuel used in train operations
|
7,905
|
|
|
6.0
|
%
|
|
1,991
|
|
|
10.2
|
%
|
|
5,914
|
|
|
(67
|
)
|
|
1,924
|
|
|
5,981
|
|
||||||
Electricity used in train operations
|
3,365
|
|
|
2.6
|
%
|
|
389
|
|
|
2.0
|
%
|
|
2,976
|
|
|
(13
|
)
|
|
376
|
|
|
2,989
|
|
||||||
Casualties and insurance
|
1,345
|
|
|
1.0
|
%
|
|
187
|
|
|
1.0
|
%
|
|
1,158
|
|
|
(4
|
)
|
|
183
|
|
|
1,162
|
|
||||||
Materials
|
6,172
|
|
|
4.7
|
%
|
|
460
|
|
|
2.4
|
%
|
|
5,712
|
|
|
(15
|
)
|
|
445
|
|
|
5,727
|
|
||||||
Trackage rights
|
9,420
|
|
|
7.2
|
%
|
|
1,793
|
|
|
9.2
|
%
|
|
7,627
|
|
|
(28
|
)
|
|
1,765
|
|
|
7,655
|
|
||||||
Net gain on sale of assets
|
2
|
|
|
—
|
%
|
|
(14
|
)
|
|
(0.1
|
)%
|
|
16
|
|
|
—
|
|
|
(14
|
)
|
|
16
|
|
||||||
Restructuring costs
|
75
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||||
Other expenses
|
5,517
|
|
|
4.2
|
%
|
|
114
|
|
|
0.6
|
%
|
|
5,403
|
|
|
(235
|
)
|
|
(121
|
)
|
|
5,638
|
|
||||||
Total operating expenses
|
$
|
132,271
|
|
|
100.9
|
%
|
|
$
|
18,161
|
|
|
93.3
|
%
|
|
$
|
114,110
|
|
|
$
|
(746
|
)
|
|
$
|
17,415
|
|
|
$
|
114,856
|
|
|
|
2016 Budgeted
|
||
|
|
Capital
|
||
|
|
Expenditures
|
||
Track and equipment improvements, self-funded
|
|
$
|
175,000
|
|
Track and equipment improvements, subject to third-party funding
|
|
80,000
|
|
|
New business development
|
|
35,000
|
|
|
Gross capital expenditures
|
|
$
|
290,000
|
|
Grants from outside parties
|
|
(65,000
|
)
|
|
Net capital expenditures
|
|
$
|
225,000
|
|
|
|
Three Months Ended
|
||||||||||||||
|
|
March 31, 2016
|
||||||||||||||
Capital Expenditures:
|
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
|
||||||||
Track and equipment, self-funded
|
|
$
|
25,554
|
|
|
$
|
1,607
|
|
|
$
|
7,530
|
|
|
$
|
34,691
|
|
Track and equipment, subject to third-party funding
|
|
5,725
|
|
|
—
|
|
|
—
|
|
|
5,725
|
|
||||
New business development
|
|
1,600
|
|
|
—
|
|
|
508
|
|
|
2,108
|
|
||||
Gross capital expenditures
|
|
32,879
|
|
|
1,607
|
|
|
8,038
|
|
|
42,524
|
|
||||
Grants from outside parties
|
|
(5,193
|
)
|
|
—
|
|
|
—
|
|
|
(5,193
|
)
|
||||
Net capital expenditures
|
|
$
|
27,686
|
|
|
$
|
1,607
|
|
|
$
|
8,038
|
|
|
$
|
37,331
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
ITEM 4.
|
CONTROLS AND PROCEDURES.
|
ITEM 1.
|
LEGAL PROCEEDINGS.
|
ITEM 1A.
|
RISK FACTORS.
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
|
Period in 2016
|
(a) Total Number of
Shares (or Units)
Purchased (1)
|
|
(b) Average
Price Paid
per Share
(or Unit)
|
|
(c) Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs
|
|
(d) Maximum Number
of Shares (or Units)
(or Approximate Dollar Value)
that May Yet Be Purchased
Under the Plans or
Programs (2)
|
||||||
January 1 to January 31
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
300,000,000
|
|
February 1 to February 29
|
40,650
|
|
|
$
|
56.77
|
|
|
—
|
|
|
$
|
300,000,000
|
|
March 1 to March 31
|
2,366
|
|
|
$
|
57.12
|
|
|
—
|
|
|
$
|
300,000,000
|
|
Total
|
43,016
|
|
|
$
|
56.79
|
|
|
—
|
|
|
$
|
300,000,000
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES.
|
ITEM 4.
|
MINE SAFETY DISCLOSURES.
|
ITEM 5.
|
OTHER INFORMATION.
|
ITEM 6.
|
EXHIBITS.
|
|
|
GENESEE & WYOMING INC.
|
|
|
|
|
|
Date:
|
May 5, 2016
|
By:
|
/s/
T
IMOTHY
J. G
ALLAGHER
|
|
|
Name:
|
Timothy J. Gallagher
|
|
|
Title:
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
Date:
|
May 5, 2016
|
By:
|
/
s/ C
HRISTOPHER
F. L
IUCCI
|
|
|
Name:
|
Christopher F. Liucci
|
|
|
Title:
|
Chief Accounting Officer
(Principal Accounting Officer)
|
Exhibit
No.
|
|
Description of Exhibits
|
*10.1
|
|
Form of Performance-Based Restricted Unit Award Notice Under the Third Amended and Restated Omnibus Incentive Plan
|
|
|
|
*10.2
|
|
Form of Performance-Based Restricted Unit Award Notice for the CEO Under the Third Amended and Restated Omnibus Incentive Plan
|
|
|
|
*31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer
|
|
|
|
*31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer
|
|
|
|
*32.1
|
|
Section 1350 Certification
|
|
|
|
*101
|
|
The following financial information from Genesee & Wyoming Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, formatted in XBRL (eXtensible Business Reporting Language) includes: (i) Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015, (ii) Consolidated Statements of Operations for the three months ended March 31, 2016 and 2015, (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three months ended March 31, 2016 and 2015, (iv) Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and 2015 and (v) the Notes to Consolidated Financial Statements.
|
Type of Award:
|
Performance-Based Restricted Stock Unit Award
|
Performance Vesting Period:
|
[MONTH] [DATE], 20XX through [MONTH] [DATE], 20XX
|
Variance from GVA Target Performance
|
|
GVA Performance
Factor |
|
|
|
|
|
110% or greater
|
|
200
|
%
|
Between 102.5% and 110%
|
|
interpolated
|
|
Between 100% and 102.5%
|
|
100
|
%
|
100%
|
|
100
|
%
|
Between 97.5% and 100%
|
|
100
|
%
|
Between 80% and 97.5%
|
|
interpolated
|
|
80% and below
|
|
0
|
%
|
|
|
|
Type of Award:
|
Performance-Based Restricted Stock Unit Award
|
Performance Vesting Period:
|
[MONTH] [DATE], 20XX through [MONTH] [DATE], 20XX
|
Variance from GVA Target Performance
|
|
GVA Performance
Factor |
|
|
|
|
|
110% or greater
|
|
200
|
%
|
Between 102.5% and 110%
|
|
interpolated
|
|
Between 100% and 102.5%
|
|
100
|
%
|
100%
|
|
100
|
%
|
Between 97.5% and 100%
|
|
100
|
%
|
Between 80% and 97.5%
|
|
interpolated
|
|
80% and below
|
|
0
|
%
|
|
|
|
5.
|
Special Vesting Provisions
.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2016
, of Genesee & Wyoming Inc. (the "registrant");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 5, 2016
|
|
/s/ JOHN C. HELLMANN
|
|
|
|
John C. Hellmann,
|
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2016
, of Genesee & Wyoming Inc. (the "registrant");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 5, 2016
|
|
/s/ TIMOTHY J. GALLAGHER
|
|
|
|
Timothy J. Gallagher,
|
|
|
|
Chief Financial Officer
|
|
|
/s/ JOHN C. HELLMANN
|
|
|
|
John C. Hellmann
|
|
|
|
President and Chief Executive Officer
|
|
|
|
Date:
|
May 5, 2016
|
|
|
|
|
|
|
/s/ TIMOTHY J. GALLAGHER
|
|
|
|
Timothy J. Gallagher
|
|
|
|
Chief Financial Officer
|
|
|
|
Date:
|
May 5, 2016
|