|
(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
|
|
Smaller reporting company
|
|
o
|
|
|
|
|
Emerging growth company
|
|
o
|
Class
|
|
Number of Shares Outstanding
|
Class A Common Stock
|
|
58,390,843
|
Class B Common Stock
|
|
541,138
|
|
INDEX
|
||
|
|
Page
|
|
|
|
|
||
|
|
|
Part I
|
||
|
|
|
Item 1.
|
|
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Part II
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
OPERATING REVENUES
|
$
|
603,304
|
|
|
$
|
576,927
|
|
|
$
|
1,772,955
|
|
|
$
|
1,636,468
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
||||||||
Labor and benefits
|
175,853
|
|
|
169,576
|
|
|
539,407
|
|
|
500,936
|
|
||||
Equipment rents
|
35,325
|
|
|
33,291
|
|
|
104,214
|
|
|
100,399
|
|
||||
Purchased services
|
53,717
|
|
|
68,562
|
|
|
178,864
|
|
|
176,358
|
|
||||
Depreciation and amortization
|
65,392
|
|
|
64,222
|
|
|
197,127
|
|
|
186,509
|
|
||||
Diesel fuel used in train operations
|
45,713
|
|
|
34,535
|
|
|
137,487
|
|
|
105,718
|
|
||||
Electricity used in train operations
|
2,742
|
|
|
765
|
|
|
7,020
|
|
|
6,072
|
|
||||
Casualties and insurance
|
9,912
|
|
|
10,624
|
|
|
32,862
|
|
|
33,346
|
|
||||
Materials
|
32,744
|
|
|
30,664
|
|
|
97,589
|
|
|
77,861
|
|
||||
Trackage rights
|
22,838
|
|
|
22,632
|
|
|
67,119
|
|
|
66,652
|
|
||||
Net gain on sale and impairment of assets
|
(642
|
)
|
|
(315
|
)
|
|
(2,501
|
)
|
|
(1,096
|
)
|
||||
Restructuring costs
|
3,286
|
|
|
2,628
|
|
|
12,931
|
|
|
8,744
|
|
||||
Other expenses, net
|
28,604
|
|
|
29,901
|
|
|
82,978
|
|
|
89,494
|
|
||||
Total operating expenses
|
475,484
|
|
|
467,085
|
|
|
1,455,097
|
|
|
1,350,993
|
|
||||
OPERATING INCOME
|
127,820
|
|
|
109,842
|
|
|
317,858
|
|
|
285,475
|
|
||||
Interest income
|
417
|
|
|
463
|
|
|
1,499
|
|
|
1,271
|
|
||||
Interest expense
|
(26,429
|
)
|
|
(28,281
|
)
|
|
(80,605
|
)
|
|
(80,431
|
)
|
||||
Other income/(loss), net
|
1,515
|
|
|
1,868
|
|
|
(237
|
)
|
|
4,519
|
|
||||
Income before income taxes
|
103,323
|
|
|
83,892
|
|
|
238,515
|
|
|
210,834
|
|
||||
Provision for income taxes
|
(31,013
|
)
|
|
(30,507
|
)
|
|
(41,569
|
)
|
|
(82,032
|
)
|
||||
Net income
|
$
|
72,310
|
|
|
$
|
53,385
|
|
|
$
|
196,946
|
|
|
$
|
128,802
|
|
Less: Net income attributable to noncontrolling interest
|
2,720
|
|
|
3,145
|
|
|
8,090
|
|
|
6,317
|
|
||||
Net income attributable to Genesee & Wyoming Inc.
|
$
|
69,590
|
|
|
$
|
50,240
|
|
|
$
|
188,856
|
|
|
$
|
122,485
|
|
Basic earnings per common share attributable to Genesee & Wyoming Inc. common stockholders:
|
$
|
1.18
|
|
|
$
|
0.82
|
|
|
$
|
3.13
|
|
|
$
|
1.99
|
|
Weighted average shares – Basic
|
59,168
|
|
|
61,629
|
|
|
60,343
|
|
|
61,518
|
|
||||
Diluted earnings per common share attributable to Genesee & Wyoming Inc. common stockholders:
|
$
|
1.16
|
|
|
$
|
0.80
|
|
|
$
|
3.08
|
|
|
$
|
1.96
|
|
Weighted average shares – Diluted
|
60,131
|
|
|
62,477
|
|
|
61,255
|
|
|
62,399
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
NET INCOME
|
$
|
72,310
|
|
|
$
|
53,385
|
|
|
$
|
196,946
|
|
|
$
|
128,802
|
|
OTHER COMPREHENSIVE INCOME/(LOSS):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(9,501
|
)
|
|
32,902
|
|
|
(59,042
|
)
|
|
100,054
|
|
||||
Net unrealized gain on qualifying cash flow hedges, net of tax (provision) of ($1,583), ($303), ($4,612) and ($567), respectively
|
5,153
|
|
|
736
|
|
|
14,756
|
|
|
638
|
|
||||
Changes in pension and other postretirement benefits, net of tax (provision)/benefit of ($14), ($20), ($42) and $887, respectively
|
43
|
|
|
38
|
|
|
129
|
|
|
(2,149
|
)
|
||||
Other comprehensive (loss)/income
|
(4,305
|
)
|
|
33,676
|
|
|
(44,157
|
)
|
|
98,543
|
|
||||
COMPREHENSIVE INCOME
|
$
|
68,005
|
|
|
$
|
87,061
|
|
|
$
|
152,789
|
|
|
$
|
227,345
|
|
Less: Comprehensive (loss)/income attributable to noncontrolling interest
|
(2,179
|
)
|
|
8,500
|
|
|
(9,495
|
)
|
|
24,663
|
|
||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO GENESEE & WYOMING INC.
|
$
|
70,184
|
|
|
$
|
78,561
|
|
|
$
|
162,284
|
|
|
$
|
202,682
|
|
|
|
G&W Stockholders
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Class A
Common Stock |
|
Class B
Common Stock |
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income/(Loss) |
|
Treasury
Stock |
|
Non-controlling Interest
|
|
Total
Equity |
||||||||||||||||
BALANCE, December 31, 2016
|
|
$
|
742
|
|
|
$
|
8
|
|
|
$
|
1,709,615
|
|
|
$
|
1,685,813
|
|
|
$
|
(197,316
|
)
|
|
$
|
(232,348
|
)
|
|
$
|
220,607
|
|
|
$
|
3,187,121
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
122,485
|
|
|
—
|
|
|
—
|
|
|
6,317
|
|
|
128,802
|
|
||||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80,197
|
|
|
—
|
|
|
18,346
|
|
|
98,543
|
|
||||||||
Conversion of 45,000 shares Class B Common Stock to Class A Common Stock
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Value of stock issued for stock-based compensation - 296,580 shares Class A Common Stock
|
|
2
|
|
|
—
|
|
|
8,001
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,003
|
|
||||||||
Settlement of deferred stock awards - 17,661 shares
|
|
—
|
|
|
—
|
|
|
738
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
738
|
|
||||||||
Compensation cost related to stock-based compensation
|
|
—
|
|
|
—
|
|
|
13,309
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,309
|
|
||||||||
Value of treasury stock repurchased - 44,114 shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,275
|
)
|
|
—
|
|
|
(3,275
|
)
|
||||||||
Other
|
|
—
|
|
|
—
|
|
|
444
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
438
|
|
||||||||
BALANCE, September 30, 2017
|
|
$
|
745
|
|
|
$
|
7
|
|
|
$
|
1,732,107
|
|
|
$
|
1,808,298
|
|
|
$
|
(117,119
|
)
|
|
$
|
(235,623
|
)
|
|
$
|
245,264
|
|
|
$
|
3,433,679
|
|
|
|
G&W Stockholders
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Class A
Common Stock
|
|
Class B
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Non-controlling Interest
|
|
Total
Equity
|
||||||||||||||||
BALANCE, December 31, 2017
|
|
$
|
748
|
|
|
$
|
7
|
|
|
$
|
1,757,332
|
|
|
$
|
2,234,864
|
|
|
$
|
(105,534
|
)
|
|
$
|
(236,951
|
)
|
|
$
|
245,626
|
|
|
$
|
3,896,092
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
188,856
|
|
|
—
|
|
|
—
|
|
|
8,090
|
|
|
196,946
|
|
||||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,572
|
)
|
|
—
|
|
|
(17,585
|
)
|
|
(44,157
|
)
|
||||||||
Conversion of 160,000 shares Class B Common Stock to Class A Common Stock
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Value of stock issued for stock-based compensation - 209,357 shares Class A Common Stock
|
|
2
|
|
|
—
|
|
|
7,812
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,814
|
|
||||||||
Settlement of deferred stock awards - 21,567 shares
|
|
—
|
|
|
—
|
|
|
995
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
995
|
|
||||||||
Compensation cost related to stock-based compensation
|
|
—
|
|
|
—
|
|
|
13,029
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,029
|
|
||||||||
Value of treasury stock repurchased - 3,599,107 shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(273,294
|
)
|
|
—
|
|
|
(273,294
|
)
|
||||||||
Distribution to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,898
|
)
|
|
(14,898
|
)
|
||||||||
Amounts reclassified from accumulated other comprehensive loss to retained earnings related to the United States Tax Cuts and Jobs Act
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,970
|
|
|
(2,970
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
43
|
|
||||||||
BALANCE, September 30, 2018
|
|
$
|
752
|
|
|
$
|
5
|
|
|
$
|
1,779,168
|
|
|
$
|
2,426,690
|
|
|
$
|
(135,076
|
)
|
|
$
|
(510,245
|
)
|
|
$
|
221,276
|
|
|
$
|
3,782,570
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2018
|
|
2017
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
196,946
|
|
|
$
|
128,802
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
197,127
|
|
|
186,509
|
|
||
Stock-based compensation
|
13,029
|
|
|
13,354
|
|
||
Deferred income taxes
|
7,978
|
|
|
51,231
|
|
||
Net gain on sale and impairment of assets
|
(2,501
|
)
|
|
(1,096
|
)
|
||
Changes in assets and liabilities which provided/(used) cash, net of effect of acquisitions:
|
|
|
|
||||
Accounts receivable, net
|
(50,143
|
)
|
|
(18,020
|
)
|
||
Materials and supplies
|
3,133
|
|
|
8,998
|
|
||
Prepaid expenses and other
|
(11,663
|
)
|
|
14,257
|
|
||
Accounts payable and accrued expenses
|
33,818
|
|
|
(41,529
|
)
|
||
Other assets and liabilities, net
|
9,750
|
|
|
7,883
|
|
||
Net cash provided by operating activities
|
397,474
|
|
|
350,389
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of property and equipment
|
(194,132
|
)
|
|
(149,105
|
)
|
||
Grant proceeds from outside parties
|
16,696
|
|
|
15,998
|
|
||
Net cash paid for acquisitions, net of cash acquired
|
—
|
|
|
(107,586
|
)
|
||
Proceeds from sale of business
|
7,927
|
|
|
—
|
|
||
Proceeds from sale of investment
|
—
|
|
|
2,100
|
|
||
Insurance proceeds for replacement of assets
|
2,780
|
|
|
1,406
|
|
||
Proceeds from disposition of property and equipment
|
3,710
|
|
|
4,238
|
|
||
Other investing activities
|
(2,921
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(165,940
|
)
|
|
(232,949
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Principal payments on revolving line-of-credit, long-term debt and capital lease obligations
|
(766,713
|
)
|
|
(498,925
|
)
|
||
Proceeds from revolving line-of-credit and long-term borrowings
|
821,666
|
|
|
418,735
|
|
||
Debt amendment/issuance costs
|
(5,318
|
)
|
|
—
|
|
||
Common share repurchases
|
(270,488
|
)
|
|
—
|
|
||
Distribution to noncontrolling interest
|
(14,898
|
)
|
|
—
|
|
||
Installment payments on Freightliner deferred consideration
|
(6,255
|
)
|
|
—
|
|
||
Other financing related activities, net
|
5,006
|
|
|
4,728
|
|
||
Net cash used in financing activities
|
(237,000
|
)
|
|
(75,462
|
)
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
(939
|
)
|
|
5,980
|
|
||
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
|
(6,405
|
)
|
|
47,958
|
|
||
CASH AND CASH EQUIVALENTS, beginning of period
|
80,472
|
|
|
32,319
|
|
||
CASH AND CASH EQUIVALENTS, end of period
|
$
|
74,067
|
|
|
$
|
80,277
|
|
|
|
GBP
|
|
USD
|
||||
Cash and cash equivalents
|
|
£
|
20,224
|
|
|
$
|
26,117
|
|
Accounts receivable
|
|
16,849
|
|
|
21,759
|
|
||
Materials and supplies
|
|
13,360
|
|
|
17,253
|
|
||
Prepaid expenses and other
|
|
3,238
|
|
|
4,182
|
|
||
Property and equipment
|
|
20,649
|
|
|
26,666
|
|
||
Goodwill
|
|
8,592
|
|
|
11,096
|
|
||
Intangible assets
|
|
42,000
|
|
|
54,239
|
|
||
Total assets
|
|
124,912
|
|
|
161,312
|
|
||
Accounts payable and accrued expenses
|
|
21,341
|
|
|
27,560
|
|
||
Deferred income tax liabilities, net
|
|
5,220
|
|
|
6,741
|
|
||
Deferred items-grants from outside parties
|
|
601
|
|
|
776
|
|
||
Net assets
|
|
£
|
97,750
|
|
|
$
|
126,235
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Numerators:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Genesee & Wyoming Inc.
|
$
|
69,590
|
|
|
$
|
50,240
|
|
|
$
|
188,856
|
|
|
$
|
122,485
|
|
Denominators:
|
|
|
|
|
|
|
|
||||||||
Weighted average Class A common shares outstanding – Basic
|
59,168
|
|
|
61,629
|
|
|
60,343
|
|
|
61,518
|
|
||||
Weighted average Class B common shares outstanding
|
664
|
|
|
723
|
|
|
679
|
|
|
743
|
|
||||
Dilutive effect of employee stock-based awards
|
299
|
|
|
125
|
|
|
233
|
|
|
138
|
|
||||
Weighted average shares – Diluted
|
60,131
|
|
|
62,477
|
|
|
61,255
|
|
|
62,399
|
|
||||
Earnings per common share attributable to Genesee & Wyoming Inc. common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
$
|
1.18
|
|
|
$
|
0.82
|
|
|
$
|
3.13
|
|
|
$
|
1.99
|
|
Diluted earnings per common share
|
$
|
1.16
|
|
|
$
|
0.80
|
|
|
$
|
3.08
|
|
|
$
|
1.96
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Antidilutive shares
|
704
|
|
|
1,245
|
|
|
1,045
|
|
|
1,302
|
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||
Class A Common Stock repurchased
|
894
|
|
|
3,560
|
|
||
Average price paid per share of Class A Common Stock repurchased
|
$
|
87.46
|
|
|
$
|
75.99
|
|
Shares excluded from weighted-average basic shares outstanding
|
301
|
|
|
1,707
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Accounts receivable – trade
|
$
|
423,880
|
|
|
$
|
401,723
|
|
Accounts receivable – grants from outside parties
|
14,610
|
|
|
17,734
|
|
||
Accounts receivable – insurance and other third-party claims
|
12,186
|
|
|
10,753
|
|
||
Total accounts receivable
|
450,676
|
|
|
430,210
|
|
||
Less: Allowance for doubtful accounts
|
(9,571
|
)
|
|
(13,505
|
)
|
||
Accounts receivable, net
|
$
|
441,105
|
|
|
$
|
416,705
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Amortization of deferred grants
|
$
|
3,173
|
|
|
$
|
2,978
|
|
|
$
|
8,776
|
|
|
$
|
9,287
|
|
|
Local Currency
|
|
United States Dollar Equivalent
|
|
Interest Rate
|
|||||
United States dollar
|
$
|
1,303,000
|
|
|
$
|
1,303,000
|
|
|
3.74
|
%
|
British pound
|
£
|
247,932
|
|
|
$
|
323,353
|
|
|
2.22
|
%
|
|
Quarterly Payment Date
|
|
Principal Amount of Each Quarterly Installment
|
||
United States dollar:
|
March 31, 2020
|
|
$
|
4,513
|
|
|
June 30, 2020 through March 31, 2023
|
|
$
|
17,788
|
|
|
Maturity date - June 5, 2023
|
|
$
|
1,085,031
|
|
|
|
|
|
||
British pound:
|
June 30, 2020
|
|
£
|
2,293
|
|
|
September 30, 2020 through March 31, 2023
|
|
£
|
3,412
|
|
|
Maturity date - June 5, 2023
|
|
£
|
208,111
|
|
|
|
September 30, 2018
|
||
Total available borrowing capacity
|
|
$
|
625,000
|
|
Outstanding revolving loans
|
|
$
|
6,304
|
|
Outstanding letter of credit guarantees
|
|
$
|
2,086
|
|
Unused borrowing capacity
|
|
$
|
616,610
|
|
|
Local Currency
|
|
United States Dollar Equivalent
|
|
Interest Rate
|
|||||
United States dollar (swingline loan)
|
$
|
5,000
|
|
|
$
|
5,000
|
|
|
5.75
|
%
|
British pound (swingline loan)
|
£
|
1,000
|
|
|
$
|
1,304
|
|
|
2.20
|
%
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended
September 30, 2018 |
|
Estimated Total Restructuring and Related Costs
|
||||||
Rationalization of locomotive and railcar fleet
(a)
|
$
|
379
|
|
|
$
|
6,317
|
|
|
$
|
28,000
|
|
Management restructuring
(b)
|
1,610
|
|
|
3,739
|
|
|
10,000
|
|
|||
Productivity and automation investments
|
1,502
|
|
|
2,790
|
|
|
14,000
|
|
|||
Total
|
$
|
3,491
|
|
|
$
|
12,846
|
|
|
$
|
52,000
|
|
(a)
|
The emergence of new commercial opportunities may result in less restructuring and related expense.
|
(b)
|
Subject to requisite U.K. consultative process.
|
|
Rationalization of Locomotive and Railcar Fleet
|
|
Management Restructuring
|
|
Productivity and Automation Investments
|
|
Total
|
||||||||
Restructuring and related liability as of December 31, 2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring and related costs incurred
|
6,317
|
|
|
3,739
|
|
|
2,790
|
|
|
12,846
|
|
||||
Cash payments
|
(797
|
)
|
|
(2,405
|
)
|
|
(2,567
|
)
|
|
(5,769
|
)
|
||||
Non-cash settlements
|
(897
|
)
|
|
—
|
|
|
(223
|
)
|
|
(1,120
|
)
|
||||
Restructuring and related liability as of September 30, 2018
|
$
|
4,623
|
|
|
$
|
1,334
|
|
|
$
|
—
|
|
|
$
|
5,957
|
|
|
|
|
|
Notional Amount
|
|
|
|
|
||||
Effective Date
|
|
Expiration Date
|
|
Date
|
|
Amount
|
|
Pay Fixed Rate
|
|
Receive Variable Rate
|
||
12/1/2016
|
|
12/1/2021
|
|
12/1/2021
|
|
A$
|
372,600
|
|
|
2.44%
|
|
AUD-BBR
|
12/1/2016
|
|
12/1/2021
|
|
12/1/2021
|
|
A$
|
110,746
|
|
|
2.44%
|
|
AUD-BBR
|
12/1/2016
|
|
12/1/2021
|
|
12/1/2021
|
|
A$
|
34,155
|
|
|
2.44%
|
|
AUD-BBR
|
8/31/2018
|
|
8/31/2021
|
|
8/31/2021
|
|
$
|
100,000
|
|
|
2.70%
|
|
1-month LIBOR
|
8/31/2018
|
|
8/31/2021
|
|
8/31/2021
|
|
$
|
100,000
|
|
|
2.71%
|
|
1-month LIBOR
|
8/31/2018
|
|
8/31/2048
|
|
8/31/2048
|
|
$
|
100,000
|
|
|
2.84%
|
|
1-month LIBOR
|
8/31/2018
|
|
8/31/2048
|
|
8/31/2048
|
|
$
|
100,000
|
|
|
2.87%
|
|
1-month LIBOR
|
8/31/2018
|
|
8/31/2048
|
|
8/31/2048
|
|
$
|
100,000
|
|
|
2.84%
|
|
1-month LIBOR
|
|
|
|
|
Notional Amount
|
|
|
|
|
||||
Effective Date
|
|
Settlement Date
|
|
Date
|
|
Amount
|
|
Pay Fixed Rate
|
|
Receive Variable Rate
|
||
9/30/2016
|
|
8/15/2018
|
|
9/30/2026
|
|
$
|
100,000
|
|
|
2.76%
|
|
1-month LIBOR
|
9/30/2016
|
|
8/15/2018
|
|
9/30/2026
|
|
$
|
100,000
|
|
|
2.74%
|
|
1-month LIBOR
|
9/30/2016
|
|
8/15/2018
|
|
9/30/2026
|
|
$
|
100,000
|
|
|
2.73%
|
|
1-month LIBOR
|
Effective date
|
|
Settlement Date
|
|
Notional Amount
|
|
Exchange Rate (AUD to USD)
|
5/2/2018
|
|
11/5/2018
|
|
$4,315
|
|
0.75
|
5/2/2018
|
|
12/21/2018
|
|
$5,753
|
|
0.75
|
Effective date
|
|
Settlement Date
|
|
Notional Amount
|
|
Exchange Rate (AUD to USD)
|
4/18/2018
|
|
7/5/2018
|
|
$5,379
|
|
0.78
|
Effective Date
|
|
Settlement Date
|
|
Notional Amount
|
|
Exchange Rate (GBP to USD)
|
3/25/2015
|
|
3/31/2020
|
|
£60,000
|
|
1.51
|
3/25/2015
|
|
3/31/2020
|
|
£60,000
|
|
1.50
|
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
|
6/30/2016
|
|
3/31/2020
|
|
£1,909
|
|
1.35
|
9/30/2016
|
|
3/31/2020
|
|
£1,959
|
|
1.33
|
12/30/2016
|
|
3/31/2020
|
|
£1,989
|
|
1.28
|
3/31/2017
|
|
3/31/2020
|
|
£1,975
|
|
1.30
|
6/30/2017
|
|
3/31/2020
|
|
£2,026
|
|
1.34
|
10/2/2017
|
|
3/31/2020
|
|
£2,079
|
|
1.36
|
12/29/2017
|
|
3/31/2020
|
|
£2,111
|
|
1.39
|
3/29/2018
|
|
3/31/2020
|
|
£2,096
|
|
1.44
|
6/29/2018
|
|
3/31/2020
|
|
£2,151
|
|
1.36
|
9/28/2018
|
|
3/31/2020
|
|
£2,207
|
|
1.34
|
|
|
|
Fair Value
|
||||||
|
Balance Sheet Location
|
|
September 30,
2018 |
|
December 31, 2017
|
||||
Asset Derivatives:
|
|
|
|
|
|
||||
Derivatives designated as hedges:
|
|
|
|
|
|
||||
Interest rate swap agreements
|
Prepaid expenses and other
|
|
$
|
527
|
|
|
$
|
—
|
|
Foreign currency forward contracts
|
Prepaid expenses and other
|
|
383
|
|
|
—
|
|
||
Interest rate swap agreements
|
Other assets
|
|
6,596
|
|
|
—
|
|
||
British pound forward contracts
|
Other assets
|
|
20,803
|
|
|
13,657
|
|
||
Total derivatives designated as hedges
|
|
|
$
|
28,309
|
|
|
$
|
13,657
|
|
Derivatives not designated as hedges:
|
|
|
|
|
|
||||
Cross-currency swap contract
|
Prepaid expenses and other
|
|
$
|
16,648
|
|
|
$
|
5,775
|
|
Cross-currency swap contract
|
Other assets
|
|
—
|
|
|
2,887
|
|
||
Total derivatives not designated as hedges
|
|
|
$
|
16,648
|
|
|
$
|
8,662
|
|
|
|
|
|
|
|
||||
Liability Derivatives:
|
|
|
|
|
|
||||
Derivatives designated as hedges:
|
|
|
|
|
|
||||
Interest rate swap agreements
|
Accrued expenses
|
|
$
|
755
|
|
|
$
|
1,972
|
|
Interest rate swap agreements
|
Other long-term liabilities
|
|
1,706
|
|
|
12,410
|
|
||
British pound forward contracts
|
Other long-term liabilities
|
|
246
|
|
|
829
|
|
||
Total derivatives designated as hedges
|
|
|
$
|
2,707
|
|
|
$
|
15,211
|
|
|
|
Total Cash Flow Hedge OCI Activity,
Net of Tax |
||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Derivatives Designated as Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
||||||||
Effective portion of net changes in fair value recognized in OCI, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap agreements
|
|
$
|
4,816
|
|
|
$
|
388
|
|
|
$
|
14,396
|
|
|
$
|
(1,382
|
)
|
Foreign currency forward contracts
|
|
(13
|
)
|
|
—
|
|
|
275
|
|
|
—
|
|
||||
British pound forward contracts, net
(a)
|
|
350
|
|
|
348
|
|
|
85
|
|
|
2,020
|
|
||||
|
|
$
|
5,153
|
|
|
$
|
736
|
|
|
$
|
14,756
|
|
|
$
|
638
|
|
(a)
|
The
three and nine
months ended
September 30, 2018
represented a net gain of
$2.0 million
and
$5.5 million
, respectively, for the mark-to-market of the British pound forward contracts, offset by a net loss of
$1.7 million
and
$5.4 million
, respectively, for the mark-to-market of the U.K. intercompany loan. The
three and nine
months ended
September 30, 2017
represented a net gain of
$3.2 million
and
$8.6 million
, respectively, for the mark-to-market of the U.K. intercompany loan, offset by a net loss of
$2.8 million
and
$6.6 million
, respectively, for the mark-to-market of the British pound forward contracts.
|
|
|
|
|
Amount Recognized in Earnings
|
||||||||||||||
|
|
Location of Amount Recognized in Earnings
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
September 30,
|
|
September 30,
|
|||||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
Derivative Instruments Not Designated as Hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cross-currency swap agreements
|
|
Interest expense
|
|
$
|
—
|
|
|
$
|
(1,887
|
)
|
|
$
|
—
|
|
|
$
|
(1,887
|
)
|
Cross-currency swap agreements, net
(a)
|
|
Other income/(loss), net
|
|
(2,410
|
)
|
|
(842
|
)
|
|
(4,900
|
)
|
|
(4,510
|
)
|
||||
|
|
|
|
$
|
(2,410
|
)
|
|
$
|
(2,729
|
)
|
|
$
|
(4,900
|
)
|
|
$
|
(6,397
|
)
|
(a)
|
The three months ended
September 30, 2018
represented a net gain of
$0.6 million
for the mark-to-market of the Swaps, offset by a net loss of
$3.0 million
for the mark-to-market of the GRail Intercompany Loan. The nine months ended
September 30, 2018
represented a net gain of
$3.2 million
for the mark-to-market of the Swaps, partially offset by a net loss of
$8.1 million
for the mark-to-market of the GRail Intercompany Loan. The
three and nine
months ended
September 30, 2017
represented a net gain of
$1.7 million
and
$2.0 million
, respectively, for the mark-to-market of the Swaps, offset by a net loss of
$2.5 million
and
$6.5 million
, respectively, for the mark-to-market of the GRail Intercompany Loan.
|
•
|
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.
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Financial instruments carried at fair value using Level 2 inputs:
|
|
|
|
||||
Financial assets carried at fair value:
|
|
|
|
||||
Interest rate swap agreements
|
$
|
7,123
|
|
|
$
|
—
|
|
Foreign currency forward contracts
|
383
|
|
|
—
|
|
||
British pound forward contracts
|
20,803
|
|
|
13,657
|
|
||
Cross-currency swap contracts
|
16,648
|
|
|
8,662
|
|
||
Total financial assets carried at fair value
|
$
|
44,957
|
|
|
$
|
22,319
|
|
Financial liabilities carried at fair value:
|
|
|
|
||||
Interest rate swap agreements
|
$
|
2,461
|
|
|
$
|
14,382
|
|
British pound forward contracts
|
246
|
|
|
829
|
|
||
Total financial liabilities carried at fair value
|
$
|
2,707
|
|
|
$
|
15,211
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Financial instrument carried at fair value using Level 3 inputs:
|
|
|
|
||||
Financial liabilities carried at fair value:
|
|
|
|
||||
Accrued deferred consideration – HOG
|
$
|
6,368
|
|
|
$
|
5,974
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Freightliner
|
|
$
|
—
|
|
|
$
|
859
|
|
|
$
|
—
|
|
|
$
|
2,405
|
|
HOG
|
|
$
|
137
|
|
|
$
|
126
|
|
|
$
|
394
|
|
|
$
|
166
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Financial liabilities carried at historical cost:
|
|
|
|
|
|
|
|
|
||||||||
United States term loan
|
|
$
|
1,295,234
|
|
|
$
|
1,302,650
|
|
|
$
|
1,204,714
|
|
|
$
|
1,208,657
|
|
U.K. term loan
|
|
322,526
|
|
|
325,565
|
|
|
124,747
|
|
|
126,480
|
|
||||
Australian credit agreement
|
|
465,547
|
|
|
473,331
|
|
|
513,192
|
|
|
528,105
|
|
||||
Australia subordinated shareholder loan from MIRA
|
|
172,296
|
|
|
170,173
|
|
|
186,085
|
|
|
184,750
|
|
||||
Revolving credit facility
|
|
2,395
|
|
|
6,304
|
|
|
225,155
|
|
|
229,483
|
|
||||
Other debt
|
|
2,375
|
|
|
2,363
|
|
|
2,419
|
|
|
2,426
|
|
||||
Total
|
|
$
|
2,260,373
|
|
|
$
|
2,280,386
|
|
|
$
|
2,256,312
|
|
|
$
|
2,279,901
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Operating expense:
|
|
|
|
|
|
|
|
|||||||||
|
Service cost
(a)
|
$
|
3,610
|
|
|
$
|
3,909
|
|
|
$
|
11,235
|
|
|
$
|
11,434
|
|
Nonoperating income, net:
|
|
|
|
|
|
|
|
|||||||||
|
Interest cost
|
2,383
|
|
|
2,588
|
|
|
7,416
|
|
|
7,569
|
|
||||
|
Expected return on plan assets
|
(4,572
|
)
|
|
(4,327
|
)
|
|
(14,231
|
)
|
|
(12,655
|
)
|
||||
|
Total nonoperating income, net
(b)
|
(2,189
|
)
|
|
(1,739
|
)
|
|
(6,815
|
)
|
|
(5,086
|
)
|
||||
Net periodic benefit cost
|
$
|
1,421
|
|
|
$
|
2,170
|
|
|
$
|
4,420
|
|
|
$
|
6,348
|
|
|
Foreign Currency Translation Adjustment
|
|
Defined Benefit Plans
|
|
Net Unrealized Gain/(Loss) on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance, December 31, 2017
|
$
|
(74,617
|
)
|
|
$
|
(19,601
|
)
|
|
$
|
(11,316
|
)
|
|
$
|
(105,534
|
)
|
Other comprehensive (loss)/income before reclassifications
|
(41,395
|
)
|
|
—
|
|
|
14,926
|
|
|
(26,469
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss, net of tax (provision)/benefit of ($42) and $76, respectively
|
—
|
|
|
129
|
|
(a)
|
(232
|
)
|
(b)
|
(103
|
)
|
||||
Current period change
|
(41,395
|
)
|
|
129
|
|
|
14,694
|
|
|
(26,572
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss to retained earnings related to the United States Tax Cuts and Jobs Act
|
—
|
|
|
(132
|
)
|
|
(2,838
|
)
|
|
(2,970
|
)
|
||||
Balance, September 30, 2018
|
$
|
(116,012
|
)
|
|
$
|
(19,604
|
)
|
|
$
|
540
|
|
|
$
|
(135,076
|
)
|
|
Foreign Currency Translation Adjustment
|
|
Defined Benefit Plans
|
|
Net Unrealized Gain/(Loss) on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance, December 31, 2016
|
$
|
(163,642
|
)
|
|
$
|
(19,948
|
)
|
|
$
|
(13,726
|
)
|
|
$
|
(197,316
|
)
|
Other comprehensive income/(loss) before reclassifications
|
81,412
|
|
|
(2,262
|
)
|
|
(7,003
|
)
|
|
72,147
|
|
||||
Amounts reclassified from accumulated other comprehensive loss, net of tax (provision) of ($60) and ($5,347), respectively
|
—
|
|
|
113
|
|
(a)
|
7,937
|
|
(b)
|
8,050
|
|
||||
Current period change
|
81,412
|
|
|
(2,149
|
)
|
|
934
|
|
|
80,197
|
|
||||
Balance, September 30, 2017
|
$
|
(82,230
|
)
|
|
$
|
(22,097
|
)
|
|
$
|
(12,792
|
)
|
|
$
|
(117,119
|
)
|
(a)
|
Existing net gains realized were recorded in labor and benefits on the consolidated statements of operations.
|
(b)
|
Existing net gains/(losses) realized were recorded in interest expense on the consolidated statements of operations (see Note
8
,
Derivative Financial Instruments
).
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income attributable to noncontrolling interest
|
$
|
2,720
|
|
|
$
|
3,145
|
|
|
$
|
8,090
|
|
|
$
|
6,317
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(4,804
|
)
|
|
4,972
|
|
|
(17,647
|
)
|
|
18,642
|
|
||||
Net unrealized gain/(loss) on qualifying cash flow hedges, net of tax (provision)/benefit of $41, ($164), ($26), and $127, respectively
|
(95
|
)
|
|
383
|
|
|
62
|
|
|
(296
|
)
|
||||
Comprehensive (loss)/income attributable to noncontrolling interest
|
$
|
(2,179
|
)
|
|
$
|
8,500
|
|
|
$
|
(9,495
|
)
|
|
$
|
24,663
|
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
United States dollar per Australian dollar
|
|
|
|
|
$
|
0.72
|
|
|
$
|
0.78
|
|
||||
United States dollar per British pound
|
|
|
|
|
$
|
1.30
|
|
|
$
|
1.35
|
|
||||
United States dollar per Canadian dollar
|
|
|
|
|
$
|
0.77
|
|
|
$
|
0.80
|
|
||||
United States dollar per Euro
|
|
|
|
|
$
|
1.16
|
|
|
$
|
1.20
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
United States dollar per Australian dollar
|
$
|
0.73
|
|
|
$
|
0.79
|
|
|
$
|
0.76
|
|
|
$
|
0.77
|
|
United States dollar per British pound
|
$
|
1.30
|
|
|
$
|
1.31
|
|
|
$
|
1.35
|
|
|
$
|
1.28
|
|
United States dollar per Canadian dollar
|
$
|
0.77
|
|
|
$
|
0.80
|
|
|
$
|
0.78
|
|
|
$
|
0.77
|
|
United States dollar per Euro
|
$
|
1.16
|
|
|
$
|
1.17
|
|
|
$
|
1.19
|
|
|
$
|
1.11
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Freight revenues by commodity group:
|
|
|
|
|
|
|
|
||||||||
Agricultural Products
|
$
|
30,565
|
|
|
$
|
4,150
|
|
|
$
|
1,053
|
|
|
$
|
35,768
|
|
Autos & Auto Parts
|
5,513
|
|
|
—
|
|
|
—
|
|
|
5,513
|
|
||||
Chemicals & Plastics
|
38,436
|
|
|
—
|
|
|
—
|
|
|
38,436
|
|
||||
Coal & Coke
|
23,006
|
|
|
32,357
|
|
|
2,588
|
|
|
57,951
|
|
||||
Food & Kindred Products
|
8,761
|
|
|
—
|
|
|
—
|
|
|
8,761
|
|
||||
Intermodal
|
514
|
|
|
17,538
|
|
|
58,609
|
|
|
76,661
|
|
||||
Lumber & Forest Products
|
24,113
|
|
|
—
|
|
|
—
|
|
|
24,113
|
|
||||
Metallic Ores
|
3,573
|
|
|
8,914
|
|
|
—
|
|
|
12,487
|
|
||||
Metals
|
34,904
|
|
|
—
|
|
|
—
|
|
|
34,904
|
|
||||
Minerals & Stone
|
38,570
|
|
|
2,066
|
|
|
22,344
|
|
|
62,980
|
|
||||
Petroleum Products
|
18,236
|
|
|
224
|
|
|
99
|
|
|
18,559
|
|
||||
Pulp & Paper
|
31,961
|
|
|
—
|
|
|
—
|
|
|
31,961
|
|
||||
Waste
|
8,089
|
|
|
—
|
|
|
—
|
|
|
8,089
|
|
||||
Other
|
7,191
|
|
|
—
|
|
|
—
|
|
|
7,191
|
|
||||
Total freight revenues
|
273,432
|
|
|
65,249
|
|
|
84,693
|
|
|
423,374
|
|
||||
Freight-related revenues
|
66,045
|
|
|
10,136
|
|
|
69,269
|
|
|
145,450
|
|
||||
All other revenues
|
16,232
|
|
|
1,318
|
|
|
16,930
|
|
|
34,480
|
|
||||
Total operating revenues
|
$
|
355,709
|
|
|
$
|
76,703
|
|
|
$
|
170,892
|
|
|
$
|
603,304
|
|
Operating income
|
$
|
102,484
|
|
|
$
|
20,713
|
|
|
$
|
4,623
|
|
|
$
|
127,820
|
|
Depreciation and amortization
|
$
|
41,388
|
|
|
$
|
14,937
|
|
|
$
|
9,067
|
|
|
$
|
65,392
|
|
Interest expense, net
|
$
|
10,339
|
|
|
$
|
12,780
|
|
|
$
|
2,893
|
|
|
$
|
26,012
|
|
Provision for income taxes
|
$
|
26,323
|
|
|
$
|
2,398
|
|
|
$
|
2,292
|
|
|
$
|
31,013
|
|
Cash expenditures for additions to property & equipment, net of grants from outside parties
|
$
|
42,120
|
|
|
$
|
8,185
|
|
|
$
|
6,704
|
|
|
$
|
57,009
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Freight revenues by commodity group:
|
|
|
|
|
|
|
|
||||||||
Agricultural Products
|
$
|
28,699
|
|
|
$
|
6,059
|
|
|
$
|
964
|
|
|
$
|
35,722
|
|
Autos & Auto Parts
|
6,079
|
|
|
—
|
|
|
—
|
|
|
6,079
|
|
||||
Chemicals & Plastics
|
36,745
|
|
|
—
|
|
|
—
|
|
|
36,745
|
|
||||
Coal & Coke
|
20,008
|
|
|
29,013
|
|
|
2,345
|
|
|
51,366
|
|
||||
Food & Kindred Products
|
8,257
|
|
|
—
|
|
|
—
|
|
|
8,257
|
|
||||
Intermodal
|
311
|
|
|
19,012
|
|
|
67,374
|
|
|
86,697
|
|
||||
Lumber & Forest Products
|
22,204
|
|
|
—
|
|
|
—
|
|
|
22,204
|
|
||||
Metallic Ores
|
3,703
|
|
|
11,305
|
|
|
—
|
|
|
15,008
|
|
||||
Metals
|
26,008
|
|
|
—
|
|
|
—
|
|
|
26,008
|
|
||||
Minerals & Stone
|
34,769
|
|
|
792
|
|
|
20,680
|
|
|
56,241
|
|
||||
Petroleum Products
|
16,425
|
|
|
223
|
|
|
—
|
|
|
16,648
|
|
||||
Pulp & Paper
|
28,135
|
|
|
—
|
|
|
—
|
|
|
28,135
|
|
||||
Waste
|
6,662
|
|
|
—
|
|
|
—
|
|
|
6,662
|
|
||||
Other
|
4,963
|
|
|
—
|
|
|
—
|
|
|
4,963
|
|
||||
Total freight revenues
|
242,968
|
|
|
66,404
|
|
|
91,363
|
|
|
400,735
|
|
||||
Freight-related revenues
|
60,286
|
|
|
12,880
|
|
|
67,757
|
|
|
140,923
|
|
||||
All other revenues
|
15,673
|
|
|
1,986
|
|
|
17,610
|
|
|
35,269
|
|
||||
Total operating revenues
|
$
|
318,927
|
|
|
$
|
81,270
|
|
|
$
|
176,730
|
|
|
$
|
576,927
|
|
Operating income
|
$
|
82,203
|
|
|
$
|
22,276
|
|
|
$
|
5,363
|
|
|
$
|
109,842
|
|
Depreciation and amortization
|
$
|
40,036
|
|
|
$
|
15,753
|
|
|
$
|
8,433
|
|
|
$
|
64,222
|
|
Interest expense, net
|
$
|
9,817
|
|
|
$
|
13,678
|
|
|
$
|
4,323
|
|
|
$
|
27,818
|
|
Provision for income taxes
|
$
|
28,270
|
|
|
$
|
2,013
|
|
|
$
|
224
|
|
|
$
|
30,507
|
|
Cash expenditures for additions to property & equipment, net of grants from outside parties
|
$
|
41,713
|
|
|
$
|
4,545
|
|
|
$
|
6,981
|
|
|
$
|
53,239
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Freight revenues by commodity group:
|
|
|
|
|
|
|
|
||||||||
Agricultural Products
|
$
|
91,630
|
|
|
$
|
15,639
|
|
|
$
|
3,073
|
|
|
$
|
110,342
|
|
Autos & Auto Parts
|
16,686
|
|
|
—
|
|
|
—
|
|
|
16,686
|
|
||||
Chemicals & Plastics
|
113,625
|
|
|
—
|
|
|
—
|
|
|
113,625
|
|
||||
Coal & Coke
|
62,038
|
|
|
96,506
|
|
|
8,751
|
|
|
167,295
|
|
||||
Food & Kindred Products
|
25,587
|
|
|
—
|
|
|
—
|
|
|
25,587
|
|
||||
Intermodal
|
1,203
|
|
|
50,613
|
|
|
192,413
|
|
|
244,229
|
|
||||
Lumber & Forest Products
|
70,362
|
|
|
—
|
|
|
—
|
|
|
70,362
|
|
||||
Metallic Ores
|
10,816
|
|
|
24,770
|
|
|
—
|
|
|
35,586
|
|
||||
Metals
|
95,791
|
|
|
—
|
|
|
—
|
|
|
95,791
|
|
||||
Minerals & Stone
|
107,122
|
|
|
6,247
|
|
|
63,849
|
|
|
177,218
|
|
||||
Petroleum Products
|
52,870
|
|
|
560
|
|
|
107
|
|
|
53,537
|
|
||||
Pulp & Paper
|
90,346
|
|
|
—
|
|
|
—
|
|
|
90,346
|
|
||||
Waste
|
21,316
|
|
|
—
|
|
|
—
|
|
|
21,316
|
|
||||
Other
|
19,325
|
|
|
—
|
|
|
—
|
|
|
19,325
|
|
||||
Freight revenues
|
778,717
|
|
|
194,335
|
|
|
268,193
|
|
|
1,241,245
|
|
||||
Freight-related revenues
|
193,344
|
|
|
32,214
|
|
|
203,491
|
|
|
429,049
|
|
||||
All other revenues
|
48,835
|
|
|
4,017
|
|
|
49,809
|
|
|
102,661
|
|
||||
Total operating revenues
|
$
|
1,020,896
|
|
|
$
|
230,566
|
|
|
$
|
521,493
|
|
|
$
|
1,772,955
|
|
Operating income/(loss)
|
$
|
255,918
|
|
|
$
|
62,585
|
|
|
$
|
(645
|
)
|
|
$
|
317,858
|
|
Depreciation and amortization
|
$
|
123,266
|
|
|
$
|
46,232
|
|
|
$
|
27,629
|
|
|
$
|
197,127
|
|
Interest expense, net
|
$
|
30,572
|
|
|
$
|
38,914
|
|
|
$
|
9,620
|
|
|
$
|
79,106
|
|
Provision for income taxes
|
$
|
26,930
|
|
|
$
|
7,120
|
|
|
$
|
7,519
|
|
|
$
|
41,569
|
|
Cash expenditures for additions to property & equipment, net of grants from outside parties
|
$
|
129,607
|
|
|
$
|
27,936
|
|
|
$
|
19,893
|
|
|
$
|
177,436
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Freight revenues by commodity group:
|
|
|
|
|
|
|
|
||||||||
Agricultural Products
|
$
|
92,956
|
|
|
$
|
17,737
|
|
|
$
|
3,532
|
|
|
$
|
114,225
|
|
Autos & Auto Parts
|
17,019
|
|
|
—
|
|
|
—
|
|
|
17,019
|
|
||||
Chemicals & Plastics
|
111,660
|
|
|
—
|
|
|
—
|
|
|
111,660
|
|
||||
Coal & Coke
|
57,123
|
|
|
86,292
|
|
|
7,464
|
|
|
150,879
|
|
||||
Food & Kindred Products
|
24,856
|
|
|
—
|
|
|
—
|
|
|
24,856
|
|
||||
Intermodal
|
726
|
|
|
52,113
|
|
|
190,163
|
|
|
243,002
|
|
||||
Lumber & Forest Products
|
64,903
|
|
|
—
|
|
|
—
|
|
|
64,903
|
|
||||
Metallic Ores
|
10,519
|
|
|
29,595
|
|
|
—
|
|
|
40,114
|
|
||||
Metals
|
78,681
|
|
|
—
|
|
|
—
|
|
|
78,681
|
|
||||
Minerals & Stone
|
97,446
|
|
|
4,787
|
|
|
49,823
|
|
|
152,056
|
|
||||
Petroleum Products
|
50,696
|
|
|
507
|
|
|
—
|
|
|
51,203
|
|
||||
Pulp & Paper
|
79,690
|
|
|
—
|
|
|
—
|
|
|
79,690
|
|
||||
Waste
|
19,000
|
|
|
—
|
|
|
—
|
|
|
19,000
|
|
||||
Other
|
14,347
|
|
|
—
|
|
|
—
|
|
|
14,347
|
|
||||
Freight revenues
|
$
|
719,622
|
|
|
$
|
191,031
|
|
|
$
|
250,982
|
|
|
$
|
1,161,635
|
|
Freight-related revenues
|
186,814
|
|
|
36,089
|
|
|
164,978
|
|
|
387,881
|
|
||||
All other revenues
|
47,641
|
|
|
4,866
|
|
|
34,445
|
|
|
86,952
|
|
||||
Total operating revenues
|
$
|
954,077
|
|
|
$
|
231,986
|
|
|
$
|
450,405
|
|
|
$
|
1,636,468
|
|
Operating income/(loss)
|
$
|
229,545
|
|
|
$
|
59,685
|
|
|
$
|
(3,755
|
)
|
|
$
|
285,475
|
|
Depreciation and amortization
|
$
|
117,822
|
|
|
$
|
45,915
|
|
|
$
|
22,772
|
|
|
$
|
186,509
|
|
Interest expense, net
|
$
|
29,928
|
|
|
$
|
41,500
|
|
|
$
|
7,732
|
|
|
$
|
79,160
|
|
Provision for/(benefit from) income taxes
|
$
|
78,133
|
|
|
$
|
4,805
|
|
|
$
|
(906
|
)
|
|
$
|
82,032
|
|
Cash expenditures for additions to property & equipment, net of grants from outside parties
|
$
|
105,940
|
|
|
$
|
9,721
|
|
|
$
|
17,446
|
|
|
$
|
133,107
|
|
|
September 30, 2018
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Cash and cash equivalents
|
$
|
7,624
|
|
|
$
|
52,568
|
|
|
$
|
13,875
|
|
|
$
|
74,067
|
|
Property and equipment, net
|
$
|
3,674,865
|
|
|
$
|
617,960
|
|
|
$
|
320,470
|
|
|
$
|
4,613,295
|
|
|
December 31, 2017
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Cash and cash equivalents
|
$
|
13,584
|
|
|
$
|
52,407
|
|
|
$
|
14,481
|
|
|
$
|
80,472
|
|
Property and equipment, net
|
$
|
3,657,801
|
|
|
$
|
664,367
|
|
|
$
|
334,753
|
|
|
$
|
4,656,921
|
|
•
|
North American Operations
:
Our
seven
North American regions serve
41
U.S. states and
four
Canadian provinces and include
115
short line and regional freight railroads with more than
13,000
track-miles.
|
•
|
Australian Operations
:
Our Australia Region serves New South Wales, the Northern Territory, and South Australia and operates the
1,400
-mile Tarcoola-to-Darwin rail line. The Australia Region is
51.1%
owned by us and
48.9%
owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets (MIRA).
|
•
|
U.K./European Operations
:
Our U.K./European Region includes the United Kingdom's (U.K.) largest rail maritime intermodal operator and the second-largest freight rail provider, as well as regional rail services in Continental Europe.
|
|
|
Income/(Loss) Before Taxes Impact
|
|
After-Tax Net Income/(Loss) Attributable to G&W Impact
|
|
Diluted Earnings/(Loss) Per Common Share Impact
|
||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
||||||
Corporate development and related costs
|
|
$
|
(0.3
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
—
|
|
Restructuring and related costs
|
|
$
|
(3.3
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
(0.04
|
)
|
Gain on settlement
|
|
$
|
0.9
|
|
|
$
|
0.3
|
|
|
$
|
0.01
|
|
TCJA measurement period adjustment
|
|
$
|
—
|
|
|
$
|
(1.6
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
||||||
Corporate development and related costs
|
|
$
|
(1.7
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(0.02
|
)
|
Restructuring costs
|
|
$
|
(2.6
|
)
|
|
$
|
(2.2
|
)
|
|
$
|
(0.04
|
)
|
Recognition of unrecognized tax benefits
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
$
|
0.05
|
|
|
|
Income/(Loss) Before Taxes Impact
|
|
After-Tax Net Income/(Loss) Attributable to G&W Impact
|
|
Diluted Earnings/(Loss) Per Common Share Impact
|
||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
||||||
Restructuring and related costs
|
|
$
|
(12.9
|
)
|
|
$
|
(10.5
|
)
|
|
$
|
(0.17
|
)
|
Credit facility refinancing-related costs
|
|
$
|
(2.7
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
(0.03
|
)
|
Loss on sale of ERS
|
|
$
|
(1.4
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(0.02
|
)
|
Corporate development and related costs
|
|
$
|
(0.9
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(0.01
|
)
|
Gain on settlement
|
|
$
|
7.3
|
|
|
$
|
2.6
|
|
|
$
|
0.04
|
|
2017 Short Line Tax Credit
|
|
$
|
—
|
|
|
$
|
31.6
|
|
|
$
|
0.52
|
|
Prior period tax adjustment
|
|
$
|
—
|
|
|
$
|
(3.7
|
)
|
|
$
|
(0.06
|
)
|
TCJA measurement period adjustment
|
|
$
|
—
|
|
|
$
|
(1.6
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
||||||
Corporate development and related costs
|
|
$
|
(10.8
|
)
|
|
$
|
(7.4
|
)
|
|
$
|
(0.12
|
)
|
Restructuring costs
|
|
$
|
(8.7
|
)
|
|
$
|
(7.8
|
)
|
|
$
|
(0.13
|
)
|
Gain on sale of investment
|
|
$
|
1.6
|
|
|
$
|
1.0
|
|
|
$
|
0.02
|
|
Recognition of unrecognized tax benefits
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
$
|
0.05
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease) in Total Operations
|
|
Increase/(Decrease) in Existing Operations
|
|
Currency Impact
|
|
Currency Impact on Total Existing Operations
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||||||||||
|
|
Total Operations
|
|
Divested Operations
|
|
Total Existing/Ongoing Operations
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
|
|||||||||||||||||||||
Freight revenues
|
$
|
423,374
|
|
|
$
|
400,735
|
|
|
$
|
10,590
|
|
|
$
|
390,145
|
|
|
$
|
22,639
|
|
|
5.6
|
%
|
|
$
|
33,229
|
|
|
8.5
|
%
|
|
$
|
(6,300
|
)
|
|
$
|
(6,198
|
)
|
Freight-related revenues
|
145,450
|
|
|
140,923
|
|
|
3,276
|
|
|
137,647
|
|
|
4,527
|
|
|
3.2
|
%
|
|
7,803
|
|
|
5.7
|
%
|
|
(1,544
|
)
|
|
(1,520
|
)
|
||||||||
All other revenues
|
34,480
|
|
|
35,269
|
|
|
4
|
|
|
35,265
|
|
|
(789
|
)
|
|
(2.2
|
)%
|
|
(785
|
)
|
|
(2.2
|
)%
|
|
(360
|
)
|
|
(360
|
)
|
||||||||
Total operating revenues
|
$
|
603,304
|
|
|
$
|
576,927
|
|
|
$
|
13,870
|
|
|
$
|
563,057
|
|
|
$
|
26,377
|
|
|
4.6
|
%
|
|
$
|
40,247
|
|
|
7.1
|
%
|
|
$
|
(8,204
|
)
|
|
$
|
(8,078
|
)
|
Carloads
|
838,919
|
|
|
814,128
|
|
|
31,239
|
|
|
782,889
|
|
|
24,791
|
|
|
3.0
|
%
|
|
56,030
|
|
|
7.2
|
%
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease)
|
|
Currency
Impact |
|
2017 Constant Currency*
|
|
Increase/(Decrease)Constant Currency*
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||
|
Amount
|
|
% of
Operating Revenues |
|
Amount
|
|
% of
Operating Revenues |
|
|
|
|||||||||||||||||||
Labor and benefits
|
$
|
175,853
|
|
|
29.1
|
%
|
|
$
|
169,576
|
|
|
29.4
|
%
|
|
$
|
6,277
|
|
|
$
|
(1,872
|
)
|
|
$
|
167,704
|
|
|
$
|
8,149
|
|
Equipment rents
|
35,325
|
|
|
5.9
|
%
|
|
33,291
|
|
|
5.8
|
%
|
|
2,034
|
|
|
(305
|
)
|
|
32,986
|
|
|
2,339
|
|
||||||
Purchased services
|
53,717
|
|
|
8.9
|
%
|
|
68,562
|
|
|
11.9
|
%
|
|
(14,845
|
)
|
|
(880
|
)
|
|
67,682
|
|
|
(13,965
|
)
|
||||||
Depreciation and amortization
|
65,392
|
|
|
10.9
|
%
|
|
64,222
|
|
|
11.1
|
%
|
|
1,170
|
|
|
(1,464
|
)
|
|
62,758
|
|
|
2,634
|
|
||||||
Diesel fuel used in train operations
|
45,713
|
|
|
7.6
|
%
|
|
34,535
|
|
|
6.0
|
%
|
|
11,178
|
|
|
(607
|
)
|
|
33,928
|
|
|
11,785
|
|
||||||
Electricity used in train operations
|
2,742
|
|
|
0.5
|
%
|
|
765
|
|
|
0.1
|
%
|
|
1,977
|
|
|
(30
|
)
|
|
735
|
|
|
2,007
|
|
||||||
Casualties and insurance
|
9,912
|
|
|
1.6
|
%
|
|
10,624
|
|
|
1.9
|
%
|
|
(712
|
)
|
|
(117
|
)
|
|
10,507
|
|
|
(595
|
)
|
||||||
Materials
|
32,744
|
|
|
5.4
|
%
|
|
30,664
|
|
|
5.3
|
%
|
|
2,080
|
|
|
(378
|
)
|
|
30,286
|
|
|
2,458
|
|
||||||
Trackage rights
|
22,838
|
|
|
3.8
|
%
|
|
22,632
|
|
|
3.9
|
%
|
|
206
|
|
|
(366
|
)
|
|
22,266
|
|
|
572
|
|
||||||
Net gain on sale and impairment of assets
|
(642
|
)
|
|
(0.1
|
)%
|
|
(315
|
)
|
|
(0.1
|
)%
|
|
(327
|
)
|
|
7
|
|
|
(308
|
)
|
|
(334
|
)
|
||||||
Restructuring costs
|
3,286
|
|
|
0.5
|
%
|
|
2,628
|
|
|
0.5
|
%
|
|
658
|
|
|
(22
|
)
|
|
2,606
|
|
|
680
|
|
||||||
Other expenses, net
|
28,604
|
|
|
4.7
|
%
|
|
29,901
|
|
|
5.2
|
%
|
|
(1,297
|
)
|
|
(363
|
)
|
|
29,538
|
|
|
(934
|
)
|
||||||
Total operating expenses
|
$
|
475,484
|
|
|
78.8
|
%
|
|
$
|
467,085
|
|
|
81.0
|
%
|
|
$
|
8,399
|
|
|
$
|
(6,397
|
)
|
|
$
|
460,688
|
|
|
$
|
14,796
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||
|
|
North
American
Operations
|
|
Australian
Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
|
$
|
273,432
|
|
|
$
|
65,249
|
|
|
$
|
84,693
|
|
|
$
|
423,374
|
|
Freight-related revenues
|
|
66,045
|
|
|
10,136
|
|
|
69,269
|
|
|
145,450
|
|
||||
All other revenues
|
|
16,232
|
|
|
1,318
|
|
|
16,930
|
|
|
34,480
|
|
||||
Total operating revenues
|
|
355,709
|
|
|
76,703
|
|
|
170,892
|
|
|
603,304
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Labor and benefits
|
|
107,940
|
|
|
17,400
|
|
|
50,513
|
|
|
175,853
|
|
||||
Equipment rents
|
|
15,441
|
|
|
1,452
|
|
|
18,432
|
|
|
35,325
|
|
||||
Purchased services
|
|
14,968
|
|
|
6,319
|
|
|
32,430
|
|
|
53,717
|
|
||||
Depreciation and amortization
|
|
41,388
|
|
|
14,937
|
|
|
9,067
|
|
|
65,392
|
|
||||
Diesel fuel used in train operations
|
|
23,230
|
|
|
8,074
|
|
|
14,409
|
|
|
45,713
|
|
||||
Electricity used in train operations
|
|
—
|
|
|
—
|
|
|
2,742
|
|
|
2,742
|
|
||||
Casualties and insurance
|
|
6,636
|
|
|
1,651
|
|
|
1,625
|
|
|
9,912
|
|
||||
Materials
|
|
12,836
|
|
|
3,003
|
|
|
16,905
|
|
|
32,744
|
|
||||
Trackage rights
|
|
10,586
|
|
|
1,932
|
|
|
10,320
|
|
|
22,838
|
|
||||
Net gain on sale and impairment of assets
|
|
(506
|
)
|
|
(20
|
)
|
|
(116
|
)
|
|
(642
|
)
|
||||
Restructuring costs
|
|
1
|
|
|
—
|
|
|
3,285
|
|
|
3,286
|
|
||||
Other expenses, net
|
|
20,705
|
|
|
1,242
|
|
|
6,657
|
|
|
28,604
|
|
||||
Total operating expenses
|
|
253,225
|
|
|
55,990
|
|
|
166,269
|
|
|
475,484
|
|
||||
Operating income
|
|
$
|
102,484
|
|
|
$
|
20,713
|
|
|
$
|
4,623
|
|
|
$
|
127,820
|
|
Operating ratio
|
|
71.2
|
%
|
|
73.0
|
%
|
|
97.3
|
%
|
|
78.8
|
%
|
||||
Interest expense, net
|
|
$
|
10,339
|
|
|
$
|
12,780
|
|
|
$
|
2,893
|
|
|
$
|
26,012
|
|
Provision for income taxes
|
|
$
|
26,323
|
|
|
$
|
2,398
|
|
|
$
|
2,292
|
|
|
$
|
31,013
|
|
Expenditures for additions to property & equipment, net of grants from outside parties
|
|
$
|
42,120
|
|
|
$
|
8,185
|
|
|
$
|
6,704
|
|
|
$
|
57,009
|
|
Carloads
|
|
446,219
|
|
|
151,318
|
|
|
241,382
|
|
|
838,919
|
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||
|
|
North
American Operations |
|
Australian
Operations |
|
U.K./European Operations
|
|
Total
Operations |
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
|
$
|
242,968
|
|
|
$
|
66,404
|
|
|
$
|
91,363
|
|
|
$
|
400,735
|
|
Freight-related revenues
|
|
60,286
|
|
|
12,880
|
|
|
67,757
|
|
|
140,923
|
|
||||
All other revenues
|
|
15,673
|
|
|
1,986
|
|
|
17,610
|
|
|
35,269
|
|
||||
Total operating revenues
|
|
318,927
|
|
|
81,270
|
|
|
176,730
|
|
|
576,927
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Labor and benefits
|
|
102,692
|
|
|
17,618
|
|
|
49,266
|
|
|
169,576
|
|
||||
Equipment rents
|
|
12,623
|
|
|
1,480
|
|
|
19,188
|
|
|
33,291
|
|
||||
Purchased services
|
|
15,254
|
|
|
7,139
|
|
|
46,169
|
|
|
68,562
|
|
||||
Depreciation and amortization
|
|
40,036
|
|
|
15,753
|
|
|
8,433
|
|
|
64,222
|
|
||||
Diesel fuel used in train operations
|
|
16,934
|
|
|
6,003
|
|
|
11,598
|
|
|
34,535
|
|
||||
Electricity used in train operations
|
|
—
|
|
|
—
|
|
|
765
|
|
|
765
|
|
||||
Casualties and insurance
|
|
8,488
|
|
|
1,367
|
|
|
769
|
|
|
10,624
|
|
||||
Materials
|
|
11,889
|
|
|
3,398
|
|
|
15,377
|
|
|
30,664
|
|
||||
Trackage rights
|
|
10,025
|
|
|
3,500
|
|
|
9,107
|
|
|
22,632
|
|
||||
Net gain on sale and impairment of assets
|
|
(110
|
)
|
|
(37
|
)
|
|
(168
|
)
|
|
(315
|
)
|
||||
Restructuring costs
|
|
316
|
|
|
—
|
|
|
2,312
|
|
|
2,628
|
|
||||
Other expenses, net
|
|
18,577
|
|
|
2,773
|
|
|
8,551
|
|
|
29,901
|
|
||||
Total operating expenses
|
|
236,724
|
|
|
58,994
|
|
|
171,367
|
|
|
467,085
|
|
||||
Operating income
|
|
$
|
82,203
|
|
|
$
|
22,276
|
|
|
$
|
5,363
|
|
|
$
|
109,842
|
|
Operating ratio
|
|
74.2
|
%
|
|
72.6
|
%
|
|
97.0
|
%
|
|
81.0
|
%
|
||||
Interest expense, net
|
|
$
|
9,817
|
|
|
$
|
13,678
|
|
|
$
|
4,323
|
|
|
$
|
27,818
|
|
Provision for income taxes
|
|
$
|
28,270
|
|
|
$
|
2,013
|
|
|
$
|
224
|
|
|
$
|
30,507
|
|
Expenditures for additions to property & equipment, net of grants from outside parties
|
|
$
|
41,713
|
|
|
$
|
4,545
|
|
|
$
|
6,981
|
|
|
$
|
53,239
|
|
Carloads
|
|
407,697
|
|
|
123,651
|
|
|
282,780
|
|
|
814,128
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
||||||||||
Freight revenues
|
$
|
273,432
|
|
|
$
|
242,968
|
|
|
$
|
30,464
|
|
|
12.5
|
%
|
|
$
|
(690
|
)
|
Freight-related revenues
|
66,045
|
|
|
60,286
|
|
|
5,759
|
|
|
9.6
|
%
|
|
(225
|
)
|
||||
All other revenues
|
16,232
|
|
|
15,673
|
|
|
559
|
|
|
3.6
|
%
|
|
(123
|
)
|
||||
Total operating revenues
|
$
|
355,709
|
|
|
$
|
318,927
|
|
|
$
|
36,782
|
|
|
11.5
|
%
|
|
$
|
(1,038
|
)
|
Carloads
|
446,219
|
|
|
407,697
|
|
|
38,522
|
|
|
9.4
|
%
|
|
|
|
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|
2017 Constant Currency*
|
|
Increase/(Decrease) Constant Currency*
|
||||||||||||||
|
Three Months Ended September 30,
|
|
|
|
|
||||||||||||||||||
Commodity Group
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||
Agricultural Products
|
$
|
30,565
|
|
|
$
|
28,699
|
|
|
$
|
1,866
|
|
|
$
|
(38
|
)
|
|
$
|
28,661
|
|
|
$
|
1,904
|
|
Autos & Auto Parts
|
5,513
|
|
|
6,079
|
|
|
(566
|
)
|
|
(33
|
)
|
|
6,046
|
|
|
(533
|
)
|
||||||
Chemicals & Plastics
|
38,436
|
|
|
36,745
|
|
|
1,691
|
|
|
(118
|
)
|
|
36,627
|
|
|
1,809
|
|
||||||
Coal & Coke
|
23,006
|
|
|
20,008
|
|
|
2,998
|
|
|
(32
|
)
|
|
19,976
|
|
|
3,030
|
|
||||||
Food & Kindred Products
|
8,761
|
|
|
8,257
|
|
|
504
|
|
|
(11
|
)
|
|
8,246
|
|
|
515
|
|
||||||
Intermodal
|
514
|
|
|
311
|
|
|
203
|
|
|
(1
|
)
|
|
310
|
|
|
204
|
|
||||||
Lumber & Forest Products
|
24,113
|
|
|
22,204
|
|
|
1,909
|
|
|
(44
|
)
|
|
22,160
|
|
|
1,953
|
|
||||||
Metallic Ores
|
3,573
|
|
|
3,703
|
|
|
(130
|
)
|
|
(44
|
)
|
|
3,659
|
|
|
(86
|
)
|
||||||
Metals
|
34,904
|
|
|
26,008
|
|
|
8,896
|
|
|
(84
|
)
|
|
25,924
|
|
|
8,980
|
|
||||||
Minerals & Stone
|
38,570
|
|
|
34,769
|
|
|
3,801
|
|
|
(44
|
)
|
|
34,725
|
|
|
3,845
|
|
||||||
Petroleum Products
|
18,236
|
|
|
16,425
|
|
|
1,811
|
|
|
(62
|
)
|
|
16,363
|
|
|
1,873
|
|
||||||
Pulp & Paper
|
31,961
|
|
|
28,135
|
|
|
3,826
|
|
|
(144
|
)
|
|
27,991
|
|
|
3,970
|
|
||||||
Waste
|
8,089
|
|
|
6,662
|
|
|
1,427
|
|
|
(9
|
)
|
|
6,653
|
|
|
1,436
|
|
||||||
Other
|
7,191
|
|
|
4,963
|
|
|
2,228
|
|
|
(26
|
)
|
|
4,937
|
|
|
2,254
|
|
||||||
Total freight revenues
|
$
|
273,432
|
|
|
$
|
242,968
|
|
|
$
|
30,464
|
|
|
$
|
(690
|
)
|
|
$
|
242,278
|
|
|
$
|
31,154
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight Revenues Per
Carload
|
||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||
|
|
2018
|
|
2017 Constant Currency*
|
|
|
||||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017 Constant Currency*
|
|||||||||||||||
Agricultural Products
|
$
|
30,565
|
|
|
11.2
|
%
|
|
$
|
28,661
|
|
|
11.8
|
%
|
|
50,989
|
|
|
47,588
|
|
|
$
|
599
|
|
|
$
|
603
|
|
|
$
|
602
|
|
|
Autos & Auto Parts
|
5,513
|
|
|
2.0
|
%
|
|
6,046
|
|
|
2.5
|
%
|
|
8,724
|
|
|
9,728
|
|
|
632
|
|
|
625
|
|
|
622
|
|
||||||
Chemicals & Plastics
|
38,436
|
|
|
14.0
|
%
|
|
36,627
|
|
|
15.1
|
%
|
|
43,903
|
|
|
43,739
|
|
|
875
|
|
|
840
|
|
|
837
|
|
||||||
Coal & Coke
|
23,006
|
|
|
8.4
|
%
|
|
19,976
|
|
|
8.3
|
%
|
|
70,314
|
|
|
60,864
|
|
|
327
|
|
|
329
|
|
|
328
|
|
||||||
Food & Kindred Products
|
8,761
|
|
|
3.2
|
%
|
|
8,246
|
|
|
3.4
|
%
|
|
15,312
|
|
|
14,415
|
|
|
572
|
|
|
573
|
|
|
572
|
|
||||||
Intermodal
|
514
|
|
|
0.2
|
%
|
|
310
|
|
|
0.1
|
%
|
|
4,922
|
|
|
3,145
|
|
|
104
|
|
|
99
|
|
|
99
|
|
||||||
Lumber & Forest Products
|
24,113
|
|
|
8.8
|
%
|
|
22,160
|
|
|
9.2
|
%
|
|
37,328
|
|
|
35,846
|
|
|
646
|
|
|
619
|
|
|
618
|
|
||||||
Metallic Ores
|
3,573
|
|
|
1.3
|
%
|
|
3,659
|
|
|
1.5
|
%
|
|
4,655
|
|
|
4,667
|
|
|
768
|
|
|
793
|
|
|
784
|
|
||||||
Metals
|
34,904
|
|
|
12.8
|
%
|
|
25,924
|
|
|
10.7
|
%
|
|
43,752
|
|
|
34,003
|
|
|
798
|
|
|
765
|
|
|
762
|
|
||||||
Minerals & Stone
|
38,570
|
|
|
14.1
|
%
|
|
34,725
|
|
|
14.3
|
%
|
|
60,496
|
|
|
57,104
|
|
|
638
|
|
|
609
|
|
|
608
|
|
||||||
Petroleum Products
|
18,236
|
|
|
6.7
|
%
|
|
16,363
|
|
|
6.8
|
%
|
|
26,231
|
|
|
24,772
|
|
|
695
|
|
|
663
|
|
|
661
|
|
||||||
Pulp & Paper
|
31,961
|
|
|
11.7
|
%
|
|
27,991
|
|
|
11.6
|
%
|
|
44,403
|
|
|
42,244
|
|
|
720
|
|
|
666
|
|
|
663
|
|
||||||
Waste
|
8,089
|
|
|
3.0
|
%
|
|
6,653
|
|
|
2.7
|
%
|
|
15,859
|
|
|
14,330
|
|
|
510
|
|
|
465
|
|
|
464
|
|
||||||
Other
|
7,191
|
|
|
2.6
|
%
|
|
4,937
|
|
|
2.0
|
%
|
|
19,331
|
|
|
15,252
|
|
|
372
|
|
|
325
|
|
|
324
|
|
||||||
Total
|
$
|
273,432
|
|
|
100.0
|
%
|
|
$
|
242,278
|
|
|
100.0
|
%
|
|
446,219
|
|
|
407,697
|
|
|
$
|
613
|
|
|
$
|
596
|
|
|
$
|
594
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
Increase/(Decrease) Constant Currency*
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
Currency
Impact
|
|
2017 Constant Currency*
|
|
|||||||||||||||||||
|
Amount
|
|
% of
Operating
Revenues
|
|
Amount
|
|
% of
Operating
Revenues
|
|
Increase/(Decrease)
|
|
|
|
|||||||||||||||||
Labor and benefits
|
$
|
107,940
|
|
|
30.3
|
%
|
|
$
|
102,692
|
|
|
32.2
|
%
|
|
$
|
5,248
|
|
|
$
|
(336
|
)
|
|
$
|
102,356
|
|
|
$
|
5,584
|
|
Equipment rents
|
15,441
|
|
|
4.4
|
%
|
|
12,623
|
|
|
4.0
|
%
|
|
2,818
|
|
|
(36
|
)
|
|
12,587
|
|
|
2,854
|
|
||||||
Purchased services
|
14,968
|
|
|
4.2
|
%
|
|
15,254
|
|
|
4.8
|
%
|
|
(286
|
)
|
|
(56
|
)
|
|
15,198
|
|
|
(230
|
)
|
||||||
Depreciation and amortization
|
41,388
|
|
|
11.6
|
%
|
|
40,036
|
|
|
12.5
|
%
|
|
1,352
|
|
|
(249
|
)
|
|
39,787
|
|
|
1,601
|
|
||||||
Diesel fuel used in train operations
|
23,230
|
|
|
6.5
|
%
|
|
16,934
|
|
|
5.3
|
%
|
|
6,296
|
|
|
(75
|
)
|
|
16,859
|
|
|
6,371
|
|
||||||
Casualties and insurance
|
6,636
|
|
|
1.9
|
%
|
|
8,488
|
|
|
2.7
|
%
|
|
(1,852
|
)
|
|
(18
|
)
|
|
8,470
|
|
|
(1,834
|
)
|
||||||
Materials
|
12,836
|
|
|
3.6
|
%
|
|
11,889
|
|
|
3.7
|
%
|
|
947
|
|
|
(43
|
)
|
|
11,846
|
|
|
990
|
|
||||||
Trackage rights
|
10,586
|
|
|
3.0
|
%
|
|
10,025
|
|
|
3.1
|
%
|
|
561
|
|
|
(8
|
)
|
|
10,017
|
|
|
569
|
|
||||||
Net gain on sale and impairment of assets
|
(506
|
)
|
|
(0.1
|
)%
|
|
(110
|
)
|
|
—
|
%
|
|
(396
|
)
|
|
3
|
|
|
(107
|
)
|
|
(399
|
)
|
||||||
Restructuring costs
|
1
|
|
|
—
|
%
|
|
316
|
|
|
0.1
|
%
|
|
(315
|
)
|
|
—
|
|
|
316
|
|
|
(315
|
)
|
||||||
Other expenses, net
|
20,705
|
|
|
5.8
|
%
|
|
18,577
|
|
|
5.8
|
%
|
|
2,128
|
|
|
(69
|
)
|
|
18,508
|
|
|
2,197
|
|
||||||
Total operating expenses
|
$
|
253,225
|
|
|
71.2
|
%
|
|
$
|
236,724
|
|
|
74.2
|
%
|
|
$
|
16,501
|
|
|
$
|
(887
|
)
|
|
$
|
235,837
|
|
|
$
|
17,388
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
||||||||||
Freight revenues
|
$
|
65,249
|
|
|
$
|
66,404
|
|
|
$
|
(1,155
|
)
|
|
(1.7
|
)%
|
|
$
|
(4,880
|
)
|
Freight-related revenues
|
10,136
|
|
|
12,880
|
|
|
(2,744
|
)
|
|
(21.3
|
)%
|
|
(947
|
)
|
||||
All other revenues
|
1,318
|
|
|
1,986
|
|
|
(668
|
)
|
|
(33.6
|
)%
|
|
(146
|
)
|
||||
Total operating revenues
|
$
|
76,703
|
|
|
$
|
81,270
|
|
|
$
|
(4,567
|
)
|
|
(5.6
|
)%
|
|
$
|
(5,973
|
)
|
Carloads
|
151,318
|
|
|
123,651
|
|
|
27,667
|
|
|
22.4
|
%
|
|
|
|
Three Months Ended
September 30,
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|
2017 Constant Currency*
|
|
Increase/(Decrease) Constant Currency*
|
||||||||||||||
|
|
|
|
|
|||||||||||||||||||
Commodity Group
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||
Agricultural Products
|
$
|
4,150
|
|
|
$
|
6,059
|
|
|
$
|
(1,909
|
)
|
|
$
|
(442
|
)
|
|
$
|
5,617
|
|
|
$
|
(1,467
|
)
|
Coal & Coke
|
32,357
|
|
|
29,013
|
|
|
3,344
|
|
|
(2,162
|
)
|
|
26,851
|
|
|
5,506
|
|
||||||
Intermodal
|
17,538
|
|
|
19,012
|
|
|
(1,474
|
)
|
|
(1,391
|
)
|
|
17,621
|
|
|
(83
|
)
|
||||||
Metallic Ores
|
8,914
|
|
|
11,305
|
|
|
(2,391
|
)
|
|
(820
|
)
|
|
10,485
|
|
|
(1,571
|
)
|
||||||
Minerals & Stone
|
2,066
|
|
|
792
|
|
|
1,274
|
|
|
(48
|
)
|
|
744
|
|
|
1,322
|
|
||||||
Petroleum Products
|
224
|
|
|
223
|
|
|
1
|
|
|
(17
|
)
|
|
206
|
|
|
18
|
|
||||||
Total freight revenues
|
$
|
65,249
|
|
|
$
|
66,404
|
|
|
$
|
(1,155
|
)
|
|
$
|
(4,880
|
)
|
|
$
|
61,524
|
|
|
$
|
3,725
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight Revenues Per
Carload
|
||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||
|
|
2018
|
|
2017 Constant Currency*
|
|
|
||||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017 Constant Currency*
|
|||||||||||||||
Agricultural Products
|
$
|
4,150
|
|
|
6.3
|
%
|
|
$
|
5,617
|
|
|
9.1
|
%
|
|
6,529
|
|
|
13,163
|
|
|
$
|
636
|
|
|
$
|
460
|
|
|
$
|
427
|
|
|
Coal & Coke
|
32,357
|
|
|
49.6
|
%
|
|
26,851
|
|
|
43.7
|
%
|
|
106,809
|
|
|
81,142
|
|
|
303
|
|
|
358
|
|
|
331
|
|
||||||
Intermodal
|
17,538
|
|
|
26.9
|
%
|
|
17,621
|
|
|
28.7
|
%
|
|
14,610
|
|
|
15,416
|
|
|
1,200
|
|
|
1,233
|
|
|
1,143
|
|
||||||
Metallic Ores
|
8,914
|
|
|
13.7
|
%
|
|
10,485
|
|
|
17.0
|
%
|
|
6,464
|
|
|
8,354
|
|
|
1,379
|
|
|
1,353
|
|
|
1,255
|
|
||||||
Minerals & Stone
|
2,066
|
|
|
3.2
|
%
|
|
744
|
|
|
1.2
|
%
|
|
16,813
|
|
|
5,488
|
|
|
123
|
|
|
144
|
|
|
136
|
|
||||||
Petroleum Products
|
224
|
|
|
0.3
|
%
|
|
206
|
|
|
0.3
|
%
|
|
93
|
|
|
88
|
|
|
2,409
|
|
|
2,534
|
|
|
2,341
|
|
||||||
Total
|
$
|
65,249
|
|
|
100.0
|
%
|
|
$
|
61,524
|
|
|
100.0
|
%
|
|
151,318
|
|
|
123,651
|
|
|
$
|
431
|
|
|
$
|
537
|
|
|
$
|
498
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease)
|
|
Currency Impact
|
|
2017 Constant Currency*
|
|
Increase/(Decrease)
Constant Currency* |
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||
|
Amount
|
|
% of
Operating Revenues |
|
Amount
|
|
% of
Operating Revenues |
|
|
|
|
||||||||||||||||||
Labor and benefits
|
$
|
17,400
|
|
|
22.7
|
%
|
|
$
|
17,618
|
|
|
21.6
|
%
|
|
$
|
(218
|
)
|
|
$
|
(1,290
|
)
|
|
$
|
16,328
|
|
|
$
|
1,072
|
|
Equipment rents
|
1,452
|
|
|
1.9
|
%
|
|
1,480
|
|
|
1.8
|
%
|
|
(28
|
)
|
|
(111
|
)
|
|
1,369
|
|
|
83
|
|
||||||
Purchased services
|
6,319
|
|
|
8.2
|
%
|
|
7,139
|
|
|
8.8
|
%
|
|
(820
|
)
|
|
(537
|
)
|
|
6,602
|
|
|
(283
|
)
|
||||||
Depreciation and amortization
|
14,937
|
|
|
19.5
|
%
|
|
15,753
|
|
|
19.4
|
%
|
|
(816
|
)
|
|
(1,166
|
)
|
|
14,587
|
|
|
350
|
|
||||||
Diesel fuel used in train operations
|
8,074
|
|
|
10.5
|
%
|
|
6,003
|
|
|
7.4
|
%
|
|
2,071
|
|
|
(431
|
)
|
|
5,572
|
|
|
2,502
|
|
||||||
Casualties and insurance
|
1,651
|
|
|
2.2
|
%
|
|
1,367
|
|
|
1.7
|
%
|
|
284
|
|
|
(102
|
)
|
|
1,265
|
|
|
386
|
|
||||||
Materials
|
3,003
|
|
|
3.9
|
%
|
|
3,398
|
|
|
4.2
|
%
|
|
(395
|
)
|
|
(260
|
)
|
|
3,138
|
|
|
(135
|
)
|
||||||
Trackage rights
|
1,932
|
|
|
2.5
|
%
|
|
3,500
|
|
|
4.3
|
%
|
|
(1,568
|
)
|
|
(249
|
)
|
|
3,251
|
|
|
(1,319
|
)
|
||||||
Net gain on sale and impairment of assets
|
(20
|
)
|
|
—
|
%
|
|
(37
|
)
|
|
—
|
%
|
|
17
|
|
|
3
|
|
|
(34
|
)
|
|
14
|
|
||||||
Other expenses, net
|
1,242
|
|
|
1.6
|
%
|
|
2,773
|
|
|
3.4
|
%
|
|
(1,531
|
)
|
|
(212
|
)
|
|
2,561
|
|
|
(1,319
|
)
|
||||||
Total operating expenses
|
$
|
55,990
|
|
|
73.0
|
%
|
|
$
|
58,994
|
|
|
72.6
|
%
|
|
$
|
(3,004
|
)
|
|
$
|
(4,355
|
)
|
|
$
|
54,639
|
|
|
$
|
1,351
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease) in Total Operations
|
|
Increase/(Decrease) in Existing Operations
|
|
Currency Impact
|
|
Currency Impact on Total Existing Operations
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Total Operations
|
|
Total Operations
|
|
Divested Operations
|
|
Total Existing/Ongoing Operations
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
|
||||||||||||||||||||
Freight revenues
|
$
|
84,693
|
|
|
$
|
91,363
|
|
|
$
|
10,590
|
|
|
$
|
80,773
|
|
|
$
|
(6,670
|
)
|
|
(7.3
|
)%
|
|
$
|
3,920
|
|
|
4.9
|
%
|
|
$
|
(730
|
)
|
|
$
|
(628
|
)
|
Freight-related revenues
|
69,269
|
|
|
67,757
|
|
|
3,276
|
|
|
64,481
|
|
|
1,512
|
|
|
2.2
|
%
|
|
4,788
|
|
|
7.4
|
%
|
|
(372
|
)
|
|
(348
|
)
|
||||||||
All other revenues
|
16,930
|
|
|
17,610
|
|
|
4
|
|
|
17,606
|
|
|
(680
|
)
|
|
(3.9
|
)%
|
|
(676
|
)
|
|
(3.8
|
)%
|
|
(91
|
)
|
|
(91
|
)
|
||||||||
Total operating revenues
|
$
|
170,892
|
|
|
$
|
176,730
|
|
|
$
|
13,870
|
|
|
$
|
162,860
|
|
|
$
|
(5,838
|
)
|
|
(3.3
|
)%
|
|
$
|
8,032
|
|
|
4.9
|
%
|
|
$
|
(1,193
|
)
|
|
$
|
(1,067
|
)
|
Carloads
|
241,382
|
|
|
282,780
|
|
|
31,239
|
|
|
251,541
|
|
|
(41,398
|
)
|
|
(14.6
|
)%
|
|
(10,159
|
)
|
|
(4.0
|
)%
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease) in Existing Operations
|
|
Currency Impact on Ongoing Operations
|
|
2017 Constant Currency Existing Operations*
|
|
Increase/(Decrease) in Existing Operations Constant Currency*
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||||
Commodity Group
|
Total Operations
|
|
Total Operations
|
|
Divested Operations
|
|
Total Existing/Ongoing Operations
|
|
|
|
|
||||||||||||||||||||
Agricultural Products
|
$
|
1,053
|
|
|
$
|
964
|
|
|
$
|
—
|
|
|
$
|
964
|
|
|
$
|
89
|
|
|
$
|
(24
|
)
|
|
$
|
940
|
|
|
$
|
113
|
|
Coal & Coke
|
2,588
|
|
|
2,345
|
|
|
—
|
|
|
2,345
|
|
|
243
|
|
|
(29
|
)
|
|
$
|
2,316
|
|
|
272
|
|
|||||||
Intermodal
|
58,609
|
|
|
67,374
|
|
|
10,590
|
|
|
56,784
|
|
|
1,825
|
|
|
(247
|
)
|
|
$
|
56,537
|
|
|
2,072
|
|
|||||||
Minerals & Stone
|
22,344
|
|
|
20,680
|
|
|
—
|
|
|
20,680
|
|
|
1,664
|
|
|
(328
|
)
|
|
$
|
20,352
|
|
|
1,992
|
|
|||||||
Petroleum Products
|
99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
$
|
—
|
|
|
99
|
|
|||||||
Total operating revenues
|
$
|
84,693
|
|
|
$
|
91,363
|
|
|
$
|
10,590
|
|
|
$
|
80,773
|
|
|
$
|
3,920
|
|
|
$
|
(628
|
)
|
|
$
|
80,145
|
|
|
$
|
4,548
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight Revenues Per
Carload
|
||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||
|
|
2018
|
|
2017 Constant Currency*
|
|
|
||||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017 Constant Currency*
|
|||||||||||||||
Agricultural Products
|
$
|
1,053
|
|
|
1.2
|
%
|
|
$
|
940
|
|
|
0.9
|
%
|
|
776
|
|
|
777
|
|
|
$
|
1,357
|
|
|
$
|
1,241
|
|
|
$
|
1,210
|
|
|
Coal & Coke
|
2,588
|
|
|
3.1
|
%
|
|
2,316
|
|
|
2.6
|
%
|
|
4,271
|
|
|
3,798
|
|
|
606
|
|
|
617
|
|
|
610
|
|
||||||
Intermodal
|
58,609
|
|
|
69.2
|
%
|
|
67,025
|
|
|
74.0
|
%
|
|
188,002
|
|
|
229,059
|
|
|
312
|
|
|
294
|
|
|
293
|
|
||||||
Minerals & Stone
|
22,344
|
|
|
26.4
|
%
|
|
20,352
|
|
|
22.5
|
%
|
|
48,111
|
|
|
49,146
|
|
|
464
|
|
|
421
|
|
|
414
|
|
||||||
Petroleum Products
|
99
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
|
222
|
|
|
—
|
|
|
446
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
84,693
|
|
|
100.0
|
%
|
|
$
|
90,633
|
|
|
100.0
|
%
|
|
241,382
|
|
|
282,780
|
|
|
$
|
351
|
|
|
$
|
323
|
|
|
$
|
321
|
|
|
Three Months Ended September 30,
|
|
Increase/(Decrease)
|
|
Currency Impact
|
|
2017 Constant Currency*
|
|
Increase/(Decrease)
Constant Currency* |
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||
|
Amount
|
|
% of
Operating Revenues |
|
Amount
|
|
% of
Operating Revenues |
|
|
|
|
||||||||||||||||||
Labor and benefits
|
$
|
50,513
|
|
|
29.6
|
%
|
|
$
|
49,266
|
|
|
27.9
|
%
|
|
$
|
1,247
|
|
|
$
|
(246
|
)
|
|
$
|
49,020
|
|
|
$
|
1,493
|
|
Equipment rents
|
18,432
|
|
|
10.8
|
%
|
|
19,188
|
|
|
10.9
|
%
|
|
(756
|
)
|
|
(158
|
)
|
|
19,030
|
|
|
(598
|
)
|
||||||
Purchased services
|
32,430
|
|
|
19.0
|
%
|
|
46,169
|
|
|
26.1
|
%
|
|
(13,739
|
)
|
|
(287
|
)
|
|
45,882
|
|
|
(13,452
|
)
|
||||||
Depreciation and amortization
|
9,067
|
|
|
5.3
|
%
|
|
8,433
|
|
|
4.8
|
%
|
|
634
|
|
|
(49
|
)
|
|
8,384
|
|
|
683
|
|
||||||
Diesel fuel used in train operations
|
14,409
|
|
|
8.4
|
%
|
|
11,598
|
|
|
6.6
|
%
|
|
2,811
|
|
|
(101
|
)
|
|
11,497
|
|
|
2,912
|
|
||||||
Electricity used in train operations
|
2,742
|
|
|
1.6
|
%
|
|
765
|
|
|
0.4
|
%
|
|
1,977
|
|
|
(30
|
)
|
|
735
|
|
|
2,007
|
|
||||||
Casualties and insurance
|
1,625
|
|
|
1.0
|
%
|
|
769
|
|
|
0.4
|
%
|
|
856
|
|
|
3
|
|
|
772
|
|
|
853
|
|
||||||
Materials
|
16,905
|
|
|
9.9
|
%
|
|
15,377
|
|
|
8.7
|
%
|
|
1,528
|
|
|
(75
|
)
|
|
15,302
|
|
|
1,603
|
|
||||||
Trackage rights
|
10,320
|
|
|
6.0
|
%
|
|
9,107
|
|
|
5.2
|
%
|
|
1,213
|
|
|
(109
|
)
|
|
8,998
|
|
|
1,322
|
|
||||||
Net gain on sale and impairment of assets
|
(116
|
)
|
|
(0.1
|
)%
|
|
(168
|
)
|
|
(0.1
|
)%
|
|
52
|
|
|
1
|
|
|
(167
|
)
|
|
51
|
|
||||||
Restructuring costs
|
3,285
|
|
|
1.9
|
%
|
|
2,312
|
|
|
1.3
|
%
|
|
973
|
|
|
(22
|
)
|
|
2,290
|
|
|
995
|
|
||||||
Other expenses, net
|
6,657
|
|
|
3.9
|
%
|
|
8,551
|
|
|
4.8
|
%
|
|
(1,894
|
)
|
|
(82
|
)
|
|
8,469
|
|
|
(1,812
|
)
|
||||||
Total operating expenses
|
$
|
166,269
|
|
|
97.3
|
%
|
|
$
|
171,367
|
|
|
97.0
|
%
|
|
$
|
(5,098
|
)
|
|
$
|
(1,155
|
)
|
|
$
|
170,212
|
|
|
$
|
(3,943
|
)
|
|
Nine Months Ended
September 30, 2018 |
|
Outlook for Three Months Ended
December 31, 2018
|
|
Outlook for Six Months Ended June 30, 2019
|
|
Estimated Total Restructuring and Related Costs
|
||||||||
Rationalization of locomotive and railcar fleet
(a)
|
$
|
6,317
|
|
|
$
|
—
|
|
|
$
|
21,200
|
|
|
$
|
28,000
|
|
Management restructuring
(b)
|
3,739
|
|
|
2,800
|
|
|
3,350
|
|
|
10,000
|
|
||||
Productivity and automation investments
|
2,790
|
|
|
2,400
|
|
|
8,500
|
|
|
14,000
|
|
||||
Total
|
$
|
12,846
|
|
|
$
|
5,200
|
|
|
$
|
33,050
|
|
|
$
|
52,000
|
|
(a)
|
The emergence of new commercial opportunities may result in less restructuring and related expense.
|
(b)
|
Subject to requisite U.K. consultative process.
|
|
Rationalization of Locomotive and Railcar Fleet
|
|
Management Restructuring
|
|
Productivity and Automation Investments
|
|
Total
|
||||||||
Restructuring and related liability as of December 31, 2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring and related costs incurred
|
6,317
|
|
|
3,739
|
|
|
2,790
|
|
|
12,846
|
|
||||
Cash payments
|
(797
|
)
|
|
(2,405
|
)
|
|
(2,567
|
)
|
|
(5,769
|
)
|
||||
Non-cash settlements
|
(897
|
)
|
|
—
|
|
|
(223
|
)
|
|
(1,120
|
)
|
||||
Restructuring and related liability as of June 30, 2018
|
$
|
4,623
|
|
|
$
|
1,334
|
|
|
$
|
—
|
|
|
$
|
5,957
|
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease) in
Total Operations
|
|
Currency Impact
|
|||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|||||||||||||||||||||||||||||
|
Total Operations
|
|
Divested Operations
|
|
Total Ongoing Operations
|
|
Total Operations
|
|
Divested Operations
|
|
Total Ongoing Operations
|
|
Amount
|
|
%
|
|
||||||||||||||||||
Freight revenues
|
$
|
1,241,245
|
|
|
$
|
17,086
|
|
|
$
|
1,224,159
|
|
|
$
|
1,161,635
|
|
|
$
|
32,558
|
|
|
$
|
1,129,077
|
|
|
$
|
79,610
|
|
|
6.9
|
%
|
|
$
|
13,920
|
|
Freight-related revenues
|
429,049
|
|
|
7,006
|
|
|
422,043
|
|
|
387,881
|
|
|
11,940
|
|
|
375,941
|
|
|
41,168
|
|
|
10.6
|
%
|
|
8,208
|
|
||||||||
All other revenues
|
102,661
|
|
|
21
|
|
|
102,640
|
|
|
86,952
|
|
|
22
|
|
|
86,930
|
|
|
15,709
|
|
|
18.1
|
%
|
|
1,125
|
|
||||||||
Total operating revenues
|
$
|
1,772,955
|
|
|
$
|
24,113
|
|
|
$
|
1,748,842
|
|
|
$
|
1,636,468
|
|
|
$
|
44,520
|
|
|
$
|
1,591,948
|
|
|
$
|
136,487
|
|
|
8.3
|
%
|
|
$
|
23,253
|
|
Carloads
|
2,484,595
|
|
|
50,949
|
|
|
2,433,646
|
|
|
2,445,458
|
|
|
63,882
|
|
|
2,381,576
|
|
|
39,137
|
|
|
1.6
|
%
|
|
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease) in
Existing/Ongoing
Operations
|
|
Currency Impact on Total Ongoing Operations
|
|||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|||||||||||||||||||||
|
Total Ongoing Operations
|
|
New Operations
|
|
Existing Operations
|
|
Total Ongoing Operations
|
|
Amount
|
|
%
|
|
||||||||||||||
Freight revenues
|
$
|
1,224,159
|
|
|
$
|
1,580
|
|
|
$
|
1,222,579
|
|
|
$
|
1,129,077
|
|
|
$
|
93,502
|
|
|
8.3
|
%
|
|
$
|
11,279
|
|
Freight-related revenues
|
422,043
|
|
|
32,532
|
|
|
389,511
|
|
|
375,941
|
|
|
13,570
|
|
|
3.6
|
%
|
|
7,084
|
|
||||||
All other revenues
|
102,640
|
|
|
14,440
|
|
|
88,200
|
|
|
86,930
|
|
|
1,270
|
|
|
1.5
|
%
|
|
1,123
|
|
||||||
Total operating revenues
|
$
|
1,748,842
|
|
|
$
|
48,552
|
|
|
$
|
1,700,290
|
|
|
$
|
1,591,948
|
|
|
$
|
108,342
|
|
|
6.8
|
%
|
|
$
|
19,486
|
|
Carloads
|
2,433,646
|
|
|
2,813
|
|
|
2,430,833
|
|
|
2,381,576
|
|
|
49,257
|
|
|
2.1
|
%
|
|
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease)
|
|
Currency
Impact |
|
2017 Constant Currency*
|
|
Increase/(Decrease)
Constant Currency*
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||
|
Amount
|
|
% of
Operating Revenues |
|
Amount
|
|
% of
Operating Revenues |
|
|
|
|||||||||||||||||||
Labor and benefits
|
$
|
539,407
|
|
|
30.4
|
%
|
|
$
|
500,936
|
|
|
30.6
|
%
|
|
$
|
38,471
|
|
|
$
|
7,526
|
|
|
$
|
508,462
|
|
|
$
|
30,945
|
|
Equipment rents
|
104,214
|
|
|
5.9
|
%
|
|
100,399
|
|
|
6.1
|
%
|
|
3,815
|
|
|
3,736
|
|
|
104,135
|
|
|
79
|
|
||||||
Purchased services
|
178,864
|
|
|
10.1
|
%
|
|
176,358
|
|
|
10.8
|
%
|
|
2,506
|
|
|
5,828
|
|
|
182,186
|
|
|
(3,322
|
)
|
||||||
Depreciation and amortization
|
197,127
|
|
|
11.1
|
%
|
|
186,509
|
|
|
11.4
|
%
|
|
10,618
|
|
|
1,075
|
|
|
187,584
|
|
|
9,543
|
|
||||||
Diesel fuel used in train operations
|
137,487
|
|
|
7.8
|
%
|
|
105,718
|
|
|
6.5
|
%
|
|
31,769
|
|
|
2,080
|
|
|
107,798
|
|
|
29,689
|
|
||||||
Electricity used in train operations
|
7,020
|
|
|
0.4
|
%
|
|
6,072
|
|
|
0.4
|
%
|
|
948
|
|
|
576
|
|
|
6,648
|
|
|
372
|
|
||||||
Casualties and insurance
|
32,862
|
|
|
1.8
|
%
|
|
33,346
|
|
|
2.0
|
%
|
|
(484
|
)
|
|
241
|
|
|
33,587
|
|
|
(725
|
)
|
||||||
Materials
|
97,589
|
|
|
5.5
|
%
|
|
77,861
|
|
|
4.8
|
%
|
|
19,728
|
|
|
960
|
|
|
78,821
|
|
|
18,768
|
|
||||||
Trackage rights
|
67,119
|
|
|
3.8
|
%
|
|
66,652
|
|
|
4.1
|
%
|
|
467
|
|
|
1,740
|
|
|
68,392
|
|
|
(1,273
|
)
|
||||||
Net gain on sale and impairment of assets
|
(2,501
|
)
|
|
(0.1
|
)%
|
|
(1,096
|
)
|
|
(0.1
|
)%
|
|
(1,405
|
)
|
|
8
|
|
|
(1,088
|
)
|
|
(1,413
|
)
|
||||||
Restructuring costs
|
12,931
|
|
|
0.7
|
%
|
|
8,744
|
|
|
0.5
|
%
|
|
4,187
|
|
|
630
|
|
|
9,374
|
|
|
3,557
|
|
||||||
Other expenses, net
|
82,978
|
|
|
4.7
|
%
|
|
89,494
|
|
|
5.5
|
%
|
|
(6,516
|
)
|
|
1,338
|
|
|
90,832
|
|
|
(7,854
|
)
|
||||||
Total operating expenses
|
$
|
1,455,097
|
|
|
82.1
|
%
|
|
$
|
1,350,993
|
|
|
82.6
|
%
|
|
$
|
104,104
|
|
|
$
|
25,738
|
|
|
$
|
1,376,731
|
|
|
$
|
78,366
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
|
North
American
Operations
|
|
Australian
Operations
|
|
U.K./European Operations
|
|
Total
Operations
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
|
$
|
778,717
|
|
|
$
|
194,335
|
|
|
$
|
268,193
|
|
|
$
|
1,241,245
|
|
Freight-related revenues
|
|
193,344
|
|
|
32,214
|
|
|
203,491
|
|
|
429,049
|
|
||||
All other revenues
|
|
48,835
|
|
|
4,017
|
|
|
49,809
|
|
|
102,661
|
|
||||
Total operating revenues
|
|
1,020,896
|
|
|
230,566
|
|
|
521,493
|
|
|
1,772,955
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Labor and benefits
|
|
329,146
|
|
|
55,318
|
|
|
154,943
|
|
|
539,407
|
|
||||
Equipment rents
|
|
41,574
|
|
|
3,950
|
|
|
58,690
|
|
|
104,214
|
|
||||
Purchased services
|
|
43,550
|
|
|
19,603
|
|
|
115,711
|
|
|
178,864
|
|
||||
Depreciation and amortization
|
|
123,266
|
|
|
46,232
|
|
|
27,629
|
|
|
197,127
|
|
||||
Diesel fuel used in train operations
|
|
71,963
|
|
|
23,557
|
|
|
41,967
|
|
|
137,487
|
|
||||
Electricity used in train operations
|
|
—
|
|
|
—
|
|
|
7,020
|
|
|
7,020
|
|
||||
Casualties and insurance
|
|
23,249
|
|
|
5,198
|
|
|
4,415
|
|
|
32,862
|
|
||||
Materials
|
|
39,189
|
|
|
8,725
|
|
|
49,675
|
|
|
97,589
|
|
||||
Trackage rights
|
|
30,225
|
|
|
6,510
|
|
|
30,384
|
|
|
67,119
|
|
||||
Net gain on sale and impairment of assets
|
|
(2,124
|
)
|
|
(133
|
)
|
|
(244
|
)
|
|
(2,501
|
)
|
||||
Restructuring costs
|
|
42
|
|
|
—
|
|
|
12,889
|
|
|
12,931
|
|
||||
Other expenses, net
|
|
64,898
|
|
|
(979
|
)
|
|
19,059
|
|
|
82,978
|
|
||||
Total operating expenses
|
|
764,978
|
|
|
167,981
|
|
|
522,138
|
|
|
1,455,097
|
|
||||
Operating income/(loss)
|
|
$
|
255,918
|
|
|
$
|
62,585
|
|
|
$
|
(645
|
)
|
|
$
|
317,858
|
|
Operating ratio
|
|
74.9
|
%
|
|
72.9
|
%
|
|
100.1
|
%
|
|
82.1
|
%
|
||||
Interest expense, net
|
|
$
|
30,572
|
|
|
$
|
38,914
|
|
|
$
|
9,620
|
|
|
$
|
79,106
|
|
Provision for income taxes
|
|
$
|
26,930
|
|
|
$
|
7,120
|
|
|
$
|
7,519
|
|
|
$
|
41,569
|
|
Expenditures for additions to property & equipment, net of grants from outside parties
|
|
$
|
129,607
|
|
|
$
|
27,936
|
|
|
$
|
19,893
|
|
|
$
|
177,436
|
|
Carloads
|
|
1,282,585
|
|
|
442,798
|
|
|
759,212
|
|
|
2,484,595
|
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||
|
|
North
American Operations |
|
Australian
Operations |
|
U.K./European Operations
|
|
Total
Operations |
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
||||||||
Freight revenues
|
|
$
|
719,622
|
|
|
$
|
191,031
|
|
|
$
|
250,982
|
|
|
$
|
1,161,635
|
|
Freight-related revenues
|
|
186,814
|
|
|
36,089
|
|
|
164,978
|
|
|
387,881
|
|
||||
All other revenues
|
|
47,641
|
|
|
4,866
|
|
|
34,445
|
|
|
86,952
|
|
||||
Total operating revenues
|
|
954,077
|
|
|
231,986
|
|
|
450,405
|
|
|
1,636,468
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Labor and benefits
|
|
314,932
|
|
|
52,447
|
|
|
133,557
|
|
|
500,936
|
|
||||
Equipment rents
|
|
39,993
|
|
|
4,215
|
|
|
56,191
|
|
|
100,399
|
|
||||
Purchased services
|
|
45,350
|
|
|
19,821
|
|
|
111,187
|
|
|
176,358
|
|
||||
Depreciation and amortization
|
|
117,822
|
|
|
45,915
|
|
|
22,772
|
|
|
186,509
|
|
||||
Diesel fuel used in train operations
|
|
54,038
|
|
|
18,913
|
|
|
32,767
|
|
|
105,718
|
|
||||
Electricity used in train operations
|
|
—
|
|
|
—
|
|
|
6,072
|
|
|
6,072
|
|
||||
Casualties and insurance
|
|
26,532
|
|
|
4,219
|
|
|
2,595
|
|
|
33,346
|
|
||||
Materials
|
|
38,413
|
|
|
8,629
|
|
|
30,819
|
|
|
77,861
|
|
||||
Trackage rights
|
|
28,732
|
|
|
10,392
|
|
|
27,528
|
|
|
66,652
|
|
||||
Net gain on sale and impairment of assets
|
|
(870
|
)
|
|
(59
|
)
|
|
(167
|
)
|
|
(1,096
|
)
|
||||
Restructuring costs
|
|
384
|
|
|
338
|
|
|
8,022
|
|
|
8,744
|
|
||||
Other expenses, net
|
|
59,206
|
|
|
7,471
|
|
|
22,817
|
|
|
89,494
|
|
||||
Total operating expenses
|
|
724,532
|
|
|
172,301
|
|
|
454,160
|
|
|
1,350,993
|
|
||||
Operating income/(loss)
|
|
$
|
229,545
|
|
|
$
|
59,685
|
|
|
$
|
(3,755
|
)
|
|
$
|
285,475
|
|
Operating ratio
|
|
75.9
|
%
|
|
74.3
|
%
|
|
100.8
|
%
|
|
82.6
|
%
|
||||
Interest expense, net
|
|
$
|
29,928
|
|
|
$
|
41,500
|
|
|
$
|
7,732
|
|
|
$
|
79,160
|
|
Provision for/(benefit from) income taxes
|
|
$
|
78,133
|
|
|
$
|
4,805
|
|
|
$
|
(906
|
)
|
|
$
|
82,032
|
|
Expenditures for additions to property & equipment, net of grants from outside parties
|
|
$
|
105,940
|
|
|
$
|
9,721
|
|
|
$
|
17,446
|
|
|
$
|
133,107
|
|
Carloads
|
|
1,207,760
|
|
|
419,156
|
|
|
818,542
|
|
|
2,445,458
|
|
|
Nine Months Ended September 30,
|
|
Increase in
Total Operations |
|
Increase in Existing Operations
|
|
Currency Impact
|
||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|||||||||||||||||||||||||||
|
Total Operations
|
|
New
Operations |
|
Existing
Operations |
|
Total Operations
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
|||||||||||||||||
Freight revenues
|
$
|
778,717
|
|
|
$
|
1,580
|
|
|
$
|
777,137
|
|
|
$
|
719,622
|
|
|
$
|
59,095
|
|
|
8.2
|
%
|
|
$
|
57,515
|
|
|
8.0
|
%
|
|
$
|
748
|
|
Freight-related revenues
|
193,344
|
|
|
240
|
|
|
193,104
|
|
|
186,814
|
|
|
6,530
|
|
|
3.5
|
%
|
|
6,290
|
|
|
3.4
|
%
|
|
170
|
|
|||||||
All other revenues
|
48,835
|
|
|
10
|
|
|
48,825
|
|
|
47,641
|
|
|
1,194
|
|
|
2.5
|
%
|
|
1,184
|
|
|
2.5
|
%
|
|
127
|
|
|||||||
Total operating revenues
|
$
|
1,020,896
|
|
|
$
|
1,830
|
|
|
$
|
1,019,066
|
|
|
$
|
954,077
|
|
|
$
|
66,819
|
|
|
7.0
|
%
|
|
$
|
64,989
|
|
|
6.8
|
%
|
|
$
|
1,045
|
|
Carloads
|
1,282,585
|
|
|
2,813
|
|
|
1,279,772
|
|
|
1,207,760
|
|
|
74,825
|
|
|
6.2
|
%
|
|
72,012
|
|
|
6.0
|
%
|
|
|
|
|
|
Increase/(Decrease) in Total Operations
|
|
New Operations
|
|
Currency
Impact
|
|
2017 Constant Currency*
|
|
Increase/(Decrease) in Existing Operations Constant Currency*
|
|||||||||||||||
|
Nine Months Ended September 30,
|
|
|
|
|
|
||||||||||||||||||||
Commodity Group
|
2018
|
|
2017
|
|
|
|
|
|
||||||||||||||||||
Agricultural Products
|
$
|
91,630
|
|
|
$
|
92,956
|
|
|
$
|
(1,326
|
)
|
|
113
|
|
|
$
|
95
|
|
|
93,051
|
|
|
(1,534
|
)
|
||
Autos & Auto Parts
|
16,686
|
|
|
17,019
|
|
|
(333
|
)
|
|
—
|
|
|
23
|
|
|
17,042
|
|
|
(356
|
)
|
||||||
Chemicals & Plastics
|
113,625
|
|
|
111,660
|
|
|
1,965
|
|
|
362
|
|
|
161
|
|
|
111,821
|
|
|
1,442
|
|
||||||
Coal & Coke
|
62,038
|
|
|
57,123
|
|
|
4,915
|
|
|
—
|
|
|
20
|
|
|
57,143
|
|
|
4,895
|
|
||||||
Food & Kindred Products
|
25,587
|
|
|
24,856
|
|
|
731
|
|
|
—
|
|
|
12
|
|
|
24,868
|
|
|
719
|
|
||||||
Intermodal
|
1,203
|
|
|
726
|
|
|
477
|
|
|
—
|
|
|
—
|
|
|
726
|
|
|
477
|
|
||||||
Lumber & Forest Products
|
70,362
|
|
|
64,903
|
|
|
5,459
|
|
|
1,050
|
|
|
56
|
|
|
64,959
|
|
|
4,353
|
|
||||||
Metallic Ores
|
10,816
|
|
|
10,519
|
|
|
297
|
|
|
—
|
|
|
36
|
|
|
10,555
|
|
|
261
|
|
||||||
Metals
|
95,791
|
|
|
78,681
|
|
|
17,110
|
|
|
—
|
|
|
120
|
|
|
78,801
|
|
|
16,990
|
|
||||||
Minerals & Stone
|
107,122
|
|
|
97,446
|
|
|
9,676
|
|
|
7
|
|
|
33
|
|
|
97,479
|
|
|
9,636
|
|
||||||
Petroleum Products
|
52,870
|
|
|
50,696
|
|
|
2,174
|
|
|
2
|
|
|
53
|
|
|
50,749
|
|
|
2,119
|
|
||||||
Pulp & Paper
|
90,346
|
|
|
79,690
|
|
|
10,656
|
|
|
—
|
|
|
120
|
|
|
79,810
|
|
|
10,536
|
|
||||||
Waste
|
21,316
|
|
|
19,000
|
|
|
2,316
|
|
|
—
|
|
|
2
|
|
|
19,002
|
|
|
2,314
|
|
||||||
Other
|
19,325
|
|
|
14,347
|
|
|
4,978
|
|
|
46
|
|
|
17
|
|
|
14,364
|
|
|
4,915
|
|
||||||
Total freight revenues
|
$
|
778,717
|
|
|
$
|
719,622
|
|
|
$
|
59,095
|
|
|
1,580
|
|
|
$
|
748
|
|
|
$
|
720,370
|
|
|
$
|
56,767
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight Revenues Per
Carload
|
||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
|
2018
|
|
2017 Constant Currency*
|
|
|
||||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017 Constant Currency*
|
|||||||||||||||
Agricultural Products
|
$
|
91,630
|
|
|
11.8
|
%
|
|
$
|
93,051
|
|
|
12.9
|
%
|
|
156,515
|
|
|
157,792
|
|
|
$
|
585
|
|
|
$
|
589
|
|
|
$
|
590
|
|
|
Autos & Auto Parts
|
16,686
|
|
|
2.1
|
%
|
|
17,042
|
|
|
2.4
|
%
|
|
26,546
|
|
|
27,705
|
|
|
629
|
|
|
614
|
|
|
615
|
|
||||||
Chemicals & Plastics
|
113,625
|
|
|
14.6
|
%
|
|
111,821
|
|
|
15.5
|
%
|
|
132,530
|
|
|
134,561
|
|
|
857
|
|
|
830
|
|
|
831
|
|
||||||
Coal & Coke
|
62,038
|
|
|
8.0
|
%
|
|
57,143
|
|
|
7.9
|
%
|
|
191,626
|
|
|
170,664
|
|
|
324
|
|
|
335
|
|
|
335
|
|
||||||
Food & Kindred Products
|
25,587
|
|
|
3.3
|
%
|
|
24,868
|
|
|
3.5
|
%
|
|
45,402
|
|
|
44,091
|
|
|
564
|
|
|
564
|
|
|
564
|
|
||||||
Intermodal
|
1,203
|
|
|
0.2
|
%
|
|
726
|
|
|
0.1
|
%
|
|
11,822
|
|
|
7,313
|
|
|
102
|
|
|
99
|
|
|
99
|
|
||||||
Lumber & Forest Products
|
70,362
|
|
|
9.0
|
%
|
|
64,959
|
|
|
9.0
|
%
|
|
111,311
|
|
|
105,020
|
|
|
632
|
|
|
618
|
|
|
619
|
|
||||||
Metallic Ores
|
10,816
|
|
|
1.3
|
%
|
|
10,555
|
|
|
1.5
|
%
|
|
13,499
|
|
|
13,840
|
|
|
801
|
|
|
760
|
|
|
763
|
|
||||||
Metals
|
95,791
|
|
|
12.3
|
%
|
|
78,801
|
|
|
10.9
|
%
|
|
119,796
|
|
|
104,496
|
|
|
800
|
|
|
753
|
|
|
754
|
|
||||||
Minerals & Stone
|
107,122
|
|
|
13.8
|
%
|
|
97,479
|
|
|
13.5
|
%
|
|
170,348
|
|
|
160,917
|
|
|
629
|
|
|
606
|
|
|
606
|
|
||||||
Petroleum Products
|
52,870
|
|
|
6.8
|
%
|
|
50,749
|
|
|
7.1
|
%
|
|
76,231
|
|
|
73,821
|
|
|
694
|
|
|
687
|
|
|
687
|
|
||||||
Pulp & Paper
|
90,346
|
|
|
11.6
|
%
|
|
79,810
|
|
|
11.1
|
%
|
|
127,522
|
|
|
120,831
|
|
|
708
|
|
|
660
|
|
|
661
|
|
||||||
Waste
|
21,316
|
|
|
2.7
|
%
|
|
19,002
|
|
|
2.6
|
%
|
|
42,677
|
|
|
39,461
|
|
|
499
|
|
|
481
|
|
|
482
|
|
||||||
Other
|
19,325
|
|
|
2.5
|
%
|
|
14,364
|
|
|
2.0
|
%
|
|
56,760
|
|
|
47,248
|
|
|
340
|
|
|
304
|
|
|
304
|
|
||||||
Total
|
$
|
778,717
|
|
|
100.0
|
%
|
|
$
|
720,370
|
|
|
100.0
|
%
|
|
1,282,585
|
|
|
1,207,760
|
|
|
$
|
607
|
|
|
$
|
596
|
|
|
$
|
596
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
Increase/(Decrease) Constant Currency*
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
Currency
Impact
|
|
2017 Constant Currency*
|
|
|||||||||||||||||||
|
Amount
|
|
% of
Operating
Revenues
|
|
Amount
|
|
% of
Operating
Revenues
|
|
Increase/(Decrease)
|
|
|
|
|||||||||||||||||
Labor and benefits
|
$
|
329,146
|
|
|
32.2
|
%
|
|
$
|
314,932
|
|
|
33.0
|
%
|
|
$
|
14,214
|
|
|
$
|
385
|
|
|
$
|
315,317
|
|
|
$
|
13,829
|
|
Equipment rents
|
41,574
|
|
|
4.1
|
%
|
|
39,993
|
|
|
4.2
|
%
|
|
1,581
|
|
|
44
|
|
|
40,037
|
|
|
1,537
|
|
||||||
Purchased services
|
43,550
|
|
|
4.3
|
%
|
|
45,350
|
|
|
4.8
|
%
|
|
(1,800
|
)
|
|
48
|
|
|
45,398
|
|
|
(1,848
|
)
|
||||||
Depreciation and amortization
|
123,266
|
|
|
12.1
|
%
|
|
117,822
|
|
|
12.3
|
%
|
|
5,444
|
|
|
260
|
|
|
118,082
|
|
|
5,184
|
|
||||||
Diesel fuel used in train operations
|
71,963
|
|
|
7.0
|
%
|
|
54,038
|
|
|
5.7
|
%
|
|
17,925
|
|
|
152
|
|
|
54,190
|
|
|
17,773
|
|
||||||
Casualties and insurance
|
23,249
|
|
|
2.3
|
%
|
|
26,532
|
|
|
2.8
|
%
|
|
(3,283
|
)
|
|
117
|
|
|
26,649
|
|
|
(3,400
|
)
|
||||||
Materials
|
39,189
|
|
|
3.8
|
%
|
|
38,413
|
|
|
4.0
|
%
|
|
776
|
|
|
56
|
|
|
38,469
|
|
|
720
|
|
||||||
Trackage rights
|
30,225
|
|
|
2.9
|
%
|
|
28,732
|
|
|
3.0
|
%
|
|
1,493
|
|
|
9
|
|
|
28,741
|
|
|
1,484
|
|
||||||
Net gain on sale and impairment of assets
|
(2,124
|
)
|
|
(0.2
|
)%
|
|
(870
|
)
|
|
(0.1
|
)%
|
|
(1,254
|
)
|
|
3
|
|
|
(867
|
)
|
|
(1,257
|
)
|
||||||
Restructuring costs
|
42
|
|
|
—
|
%
|
|
384
|
|
|
—
|
%
|
|
(342
|
)
|
|
—
|
|
|
384
|
|
|
(342
|
)
|
||||||
Other expenses, net
|
64,898
|
|
|
6.4
|
%
|
|
59,206
|
|
|
6.2
|
%
|
|
5,692
|
|
|
62
|
|
|
59,268
|
|
|
5,630
|
|
||||||
Total operating expenses
|
$
|
764,978
|
|
|
74.9
|
%
|
|
$
|
724,532
|
|
|
75.9
|
%
|
|
$
|
40,446
|
|
|
$
|
1,136
|
|
|
$
|
725,668
|
|
|
$
|
39,310
|
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|||||||||||||
|
2018
|
|
2017
|
|
Amount
|
|
%
|
|
||||||||||
Freight revenues
|
$
|
194,335
|
|
|
$
|
191,031
|
|
|
$
|
3,304
|
|
|
1.7
|
%
|
|
$
|
(2,158
|
)
|
Freight-related revenues
|
32,214
|
|
|
36,089
|
|
|
(3,875
|
)
|
|
(10.7
|
)%
|
|
(436
|
)
|
||||
All other revenues
|
4,017
|
|
|
4,866
|
|
|
(849
|
)
|
|
(17.4
|
)%
|
|
(91
|
)
|
||||
Total operating revenues
|
$
|
230,566
|
|
|
$
|
231,986
|
|
|
$
|
(1,420
|
)
|
|
(0.6
|
)%
|
|
$
|
(2,685
|
)
|
Carloads
|
442,798
|
|
|
419,156
|
|
|
23,642
|
|
|
5.6
|
%
|
|
|
|
|
|
Increase/(Decrease) in Total Operations
|
|
Currency Impact
|
|
2017 Constant Currency*
|
|
Increase/(Decrease) Total Operations Constant Currency*
|
||||||||||||||
|
Nine Months Ended September 30,
|
|
|
|
|
||||||||||||||||||
Commodity Group
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||
Agricultural Products
|
$
|
15,639
|
|
|
$
|
17,737
|
|
|
$
|
(2,098
|
)
|
|
$
|
(181
|
)
|
|
$
|
17,556
|
|
|
$
|
(1,917
|
)
|
Coal and Coke
|
96,506
|
|
|
86,292
|
|
|
10,214
|
|
|
(829
|
)
|
|
85,463
|
|
|
11,043
|
|
||||||
Intermodal
|
50,613
|
|
|
52,113
|
|
|
(1,500
|
)
|
|
(685
|
)
|
|
51,428
|
|
|
(815
|
)
|
||||||
Metallic Ores
|
24,770
|
|
|
29,595
|
|
|
(4,825
|
)
|
|
(494
|
)
|
|
29,101
|
|
|
(4,331
|
)
|
||||||
Minerals & Stone
|
6,247
|
|
|
4,787
|
|
|
1,460
|
|
|
43
|
|
|
4,830
|
|
|
1,417
|
|
||||||
Petroleum Products
|
560
|
|
|
507
|
|
|
53
|
|
|
(12
|
)
|
|
495
|
|
|
65
|
|
||||||
Total freight revenues
|
$
|
194,335
|
|
|
$
|
191,031
|
|
|
$
|
3,304
|
|
|
$
|
(2,158
|
)
|
|
188,873
|
|
|
$
|
5,462
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight Revenues Per
Carload
|
||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
|
2018
|
|
2017 Constant Currency*
|
|
|
||||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017 Constant Currency*
|
|||||||||||||||
Agricultural Products
|
$
|
15,639
|
|
|
8.0
|
%
|
|
$
|
17,556
|
|
|
9.3
|
%
|
|
33,816
|
|
|
43,804
|
|
|
$
|
462
|
|
|
$
|
405
|
|
|
$
|
401
|
|
|
Coal & Coke
|
96,506
|
|
|
49.7
|
%
|
|
85,463
|
|
|
45.2
|
%
|
|
300,947
|
|
|
271,485
|
|
|
321
|
|
|
318
|
|
|
315
|
|
||||||
Intermodal
|
50,613
|
|
|
26.1
|
%
|
|
51,428
|
|
|
27.2
|
%
|
|
41,321
|
|
|
44,153
|
|
|
1,225
|
|
|
1,180
|
|
|
1,165
|
|
||||||
Metallic Ores
|
24,770
|
|
|
12.7
|
%
|
|
29,101
|
|
|
15.4
|
%
|
|
16,921
|
|
|
24,114
|
|
|
1,464
|
|
|
1,227
|
|
|
1,207
|
|
||||||
Minerals & Stone
|
6,247
|
|
|
3.2
|
%
|
|
4,830
|
|
|
2.6
|
%
|
|
49,567
|
|
|
35,394
|
|
|
126
|
|
|
135
|
|
|
136
|
|
||||||
Petroleum Products
|
560
|
|
|
0.3
|
%
|
|
495
|
|
|
0.3
|
%
|
|
226
|
|
|
206
|
|
|
2,478
|
|
|
2,461
|
|
|
2,403
|
|
||||||
Total
|
$
|
194,335
|
|
|
100.0
|
%
|
|
$
|
188,873
|
|
|
100.0
|
%
|
|
442,798
|
|
|
419,156
|
|
|
$
|
439
|
|
|
$
|
456
|
|
|
$
|
451
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
Increase/(Decrease) Constant Currency*
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
Currency
Impact
|
|
2017 Constant Currency*
|
|
|||||||||||||||||||
|
Amount
|
|
% of
Operating
Revenues
|
|
Amount
|
|
% of
Operating
Revenues
|
|
Increase/(Decrease)
|
|
|
|
|||||||||||||||||
Labor and benefits
|
$
|
55,318
|
|
|
24.0
|
%
|
|
$
|
52,447
|
|
|
22.6
|
%
|
|
$
|
2,871
|
|
|
$
|
(512
|
)
|
|
$
|
51,935
|
|
|
$
|
3,383
|
|
Equipment rents
|
3,950
|
|
|
1.7
|
%
|
|
4,215
|
|
|
1.8
|
%
|
|
(265
|
)
|
|
(50
|
)
|
|
4,165
|
|
|
(215
|
)
|
||||||
Purchased services
|
19,603
|
|
|
8.5
|
%
|
|
19,821
|
|
|
8.6
|
%
|
|
(218
|
)
|
|
(277
|
)
|
|
19,544
|
|
|
59
|
|
||||||
Depreciation and amortization
|
46,232
|
|
|
20.1
|
%
|
|
45,915
|
|
|
19.8
|
%
|
|
317
|
|
|
(491
|
)
|
|
45,424
|
|
|
808
|
|
||||||
Diesel fuel used in train operations
|
23,557
|
|
|
10.2
|
%
|
|
18,913
|
|
|
8.2
|
%
|
|
4,644
|
|
|
(139
|
)
|
|
18,774
|
|
|
4,783
|
|
||||||
Casualties and insurance
|
5,198
|
|
|
2.3
|
%
|
|
4,219
|
|
|
1.8
|
%
|
|
979
|
|
|
(37
|
)
|
|
4,182
|
|
|
1,016
|
|
||||||
Materials
|
8,725
|
|
|
3.8
|
%
|
|
8,629
|
|
|
3.7
|
%
|
|
96
|
|
|
(145
|
)
|
|
8,484
|
|
|
241
|
|
||||||
Trackage rights
|
6,510
|
|
|
2.8
|
%
|
|
10,392
|
|
|
4.5
|
%
|
|
(3,882
|
)
|
|
(98
|
)
|
|
10,294
|
|
|
(3,784
|
)
|
||||||
Net (gain)/loss on sale and impairment of assets
|
(133
|
)
|
|
(0.1
|
)%
|
|
(59
|
)
|
|
—
|
%
|
|
(74
|
)
|
|
3
|
|
|
(56
|
)
|
|
(77
|
)
|
||||||
Restructuring costs
|
—
|
|
|
—
|
%
|
|
338
|
|
|
0.1
|
%
|
|
(338
|
)
|
|
9
|
|
|
347
|
|
|
(347
|
)
|
||||||
Other expenses, net
|
(979
|
)
|
|
(0.4
|
)%
|
|
7,471
|
|
|
3.2
|
%
|
|
(8,450
|
)
|
|
(112
|
)
|
|
7,359
|
|
|
(8,338
|
)
|
||||||
Total operating expenses
|
$
|
167,981
|
|
|
72.9
|
%
|
|
$
|
172,301
|
|
|
74.3
|
%
|
|
$
|
(4,320
|
)
|
|
$
|
(1,849
|
)
|
|
$
|
170,452
|
|
|
$
|
(2,471
|
)
|
|
Nine Months Ended September 30,
|
|
Increase/(Decrease) in Existing Operations
|
|
Currency Impact on Existing Operations
|
|
2017 Constant Currency Existing Operations*
|
|
Increase/(Decrease) in Existing Operations Constant Currency*
|
||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
||||||||||||||||||||||||||||||||
Commodity Group
|
Total Operations
|
|
Divested Operations
|
|
Total Ongoing/Existing Operations
|
|
Total Operations
|
|
Divested Operations
|
|
Total Ongoing Operations
|
|
|
|
|
||||||||||||||||||||||||
Agricultural Products
|
$
|
3,073
|
|
|
$
|
—
|
|
|
$
|
3,073
|
|
|
$
|
3,532
|
|
|
$
|
—
|
|
|
$
|
3,532
|
|
|
$
|
(459
|
)
|
|
$
|
384
|
|
|
$
|
3,916
|
|
|
$
|
(843
|
)
|
Coal & Coke
|
8,751
|
|
|
—
|
|
|
8,751
|
|
|
7,464
|
|
|
—
|
|
|
7,464
|
|
|
1,287
|
|
|
591
|
|
|
8,055
|
|
|
696
|
|
||||||||||
Intermodal
|
192,413
|
|
|
17,086
|
|
|
175,327
|
|
|
190,163
|
|
|
32,558
|
|
|
157,605
|
|
|
17,722
|
|
|
8,994
|
|
|
166,599
|
|
|
8,728
|
|
||||||||||
Minerals & Stone
|
63,849
|
|
|
—
|
|
|
63,849
|
|
|
49,823
|
|
|
—
|
|
|
49,823
|
|
|
14,026
|
|
|
2,720
|
|
|
52,543
|
|
|
11,306
|
|
||||||||||
Petroleum Products
|
107
|
|
|
—
|
|
|
107
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|
—
|
|
|
—
|
|
|
107
|
|
||||||||||
Total operating revenues
|
$
|
268,193
|
|
|
$
|
17,086
|
|
|
$
|
251,107
|
|
|
$
|
250,982
|
|
|
$
|
32,558
|
|
|
$
|
218,424
|
|
|
$
|
32,683
|
|
|
$
|
12,689
|
|
|
$
|
231,113
|
|
|
$
|
19,994
|
|
|
|
Freight Revenues
|
|
Carloads
|
|
Average Freight Revenues Per
Carload
|
||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
|
2018
|
|
2017 Constant Currency*
|
|
|
||||||||||||||||||||||||||
Commodity Group
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2017 Constant Currency*
|
|||||||||||||||
Agricultural Products
|
$
|
3,073
|
|
|
1.1
|
%
|
|
$
|
3,916
|
|
|
1.5
|
%
|
|
2,349
|
|
|
3,036
|
|
|
$
|
1,308
|
|
|
$
|
1,163
|
|
|
$
|
1,290
|
|
|
Coal & Coke
|
8,751
|
|
|
3.3
|
%
|
|
8,055
|
|
|
3.0
|
%
|
|
14,204
|
|
|
18,333
|
|
|
616
|
|
|
407
|
|
|
439
|
|
||||||
Intermodal
|
192,413
|
|
|
71.8
|
%
|
|
201,798
|
|
|
75.8
|
%
|
|
599,840
|
|
|
669,963
|
|
|
321
|
|
|
284
|
|
|
301
|
|
||||||
Minerals & Stone
|
63,849
|
|
|
23.8
|
%
|
|
52,543
|
|
|
19.7
|
%
|
|
142,577
|
|
|
127,210
|
|
|
448
|
|
|
392
|
|
|
413
|
|
||||||
Petroleum Products
|
107
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
242
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
268,193
|
|
|
100.0
|
%
|
|
$
|
266,312
|
|
|
100.0
|
%
|
|
759,212
|
|
|
818,542
|
|
|
$
|
353
|
|
|
$
|
307
|
|
|
$
|
325
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
Increase/(Decrease) Constant Currency*
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
|
|
Currency
Impact
|
|
2017 Constant Currency*
|
|
|||||||||||||||||||
|
Amount
|
|
% of
Operating
Revenues
|
|
Amount
|
|
% of
Operating
Revenues
|
|
Increase/(Decrease)
|
|
|
|
|||||||||||||||||
Labor and benefits
|
$
|
154,943
|
|
|
29.7
|
%
|
|
$
|
133,557
|
|
|
29.6
|
%
|
|
$
|
21,386
|
|
|
$
|
7,653
|
|
|
$
|
141,210
|
|
|
$
|
13,733
|
|
Equipment rents
|
58,690
|
|
|
11.3
|
%
|
|
56,191
|
|
|
12.5
|
%
|
|
2,499
|
|
|
3,742
|
|
|
59,933
|
|
|
(1,243
|
)
|
||||||
Purchased services
|
115,711
|
|
|
22.2
|
%
|
|
111,187
|
|
|
24.7
|
%
|
|
4,524
|
|
|
6,057
|
|
|
117,244
|
|
|
(1,533
|
)
|
||||||
Depreciation and amortization
|
27,629
|
|
|
5.3
|
%
|
|
22,772
|
|
|
5.1
|
%
|
|
4,857
|
|
|
1,306
|
|
|
24,078
|
|
|
3,551
|
|
||||||
Diesel fuel used in train operations
|
41,967
|
|
|
8.0
|
%
|
|
32,767
|
|
|
7.3
|
%
|
|
9,200
|
|
|
2,067
|
|
|
34,834
|
|
|
7,133
|
|
||||||
Electricity used in train operations
|
7,020
|
|
|
1.3
|
%
|
|
6,072
|
|
|
1.2
|
%
|
|
948
|
|
|
576
|
|
|
6,648
|
|
|
372
|
|
||||||
Casualties and insurance
|
4,415
|
|
|
0.8
|
%
|
|
2,595
|
|
|
0.6
|
%
|
|
1,820
|
|
|
161
|
|
|
2,756
|
|
|
1,659
|
|
||||||
Materials
|
49,675
|
|
|
9.5
|
%
|
|
30,819
|
|
|
6.8
|
%
|
|
18,856
|
|
|
1,049
|
|
|
31,868
|
|
|
17,807
|
|
||||||
Trackage rights
|
30,384
|
|
|
5.8
|
%
|
|
27,528
|
|
|
6.1
|
%
|
|
2,856
|
|
|
1,829
|
|
|
29,357
|
|
|
1,027
|
|
||||||
Net loss/(gain) on sale and impairment of assets
|
(244
|
)
|
|
—
|
%
|
|
(167
|
)
|
|
—
|
%
|
|
(77
|
)
|
|
2
|
|
|
(165
|
)
|
|
(79
|
)
|
||||||
Restructuring costs
|
12,889
|
|
|
2.5
|
%
|
|
8,022
|
|
|
1.8
|
%
|
|
4,867
|
|
|
621
|
|
|
8,643
|
|
|
4,246
|
|
||||||
Other expenses, net
|
19,059
|
|
|
3.7
|
%
|
|
22,817
|
|
|
5.1
|
%
|
|
(3,758
|
)
|
|
1,388
|
|
|
24,205
|
|
|
(5,146
|
)
|
||||||
Total operating expenses
|
$
|
522,138
|
|
|
100.1
|
%
|
|
$
|
454,160
|
|
|
100.8
|
%
|
|
$
|
67,978
|
|
|
$
|
26,451
|
|
|
$
|
480,611
|
|
|
$
|
41,527
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Senior secured credit facility
|
$
|
1,632,657
|
|
|
$
|
1,567,882
|
|
Australian senior secured credit facility
(a)
|
474,390
|
|
|
525,101
|
|
||
Australian subordinated shareholder loan from MIRA
(b)
|
172,296
|
|
|
186,085
|
|
||
Other debt
|
67,696
|
|
|
77,402
|
|
||
Less: deferred financing fees
|
(21,345
|
)
|
|
(25,175
|
)
|
||
Total debt
|
$
|
2,325,694
|
|
|
$
|
2,331,295
|
|
|
2018 Budgeted Capital Expenditures
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
|
||||||||
Track and equipment, self-funded
|
$
|
150,000
|
|
|
$
|
22,000
|
|
|
$
|
28,000
|
|
|
$
|
200,000
|
|
Track and equipment, subject to third-party funding
|
70,000
|
|
|
—
|
|
|
—
|
|
|
70,000
|
|
||||
New business investments
|
15,000
|
|
|
20,000
|
|
|
5,000
|
|
|
40,000
|
|
||||
Gross capital expenditures
|
235,000
|
|
|
42,000
|
|
|
33,000
|
|
|
310,000
|
|
||||
Grants from outside parties
|
(55,000
|
)
|
|
—
|
|
|
—
|
|
|
(55,000
|
)
|
||||
Net capital expenditures
|
$
|
180,000
|
|
|
$
|
42,000
|
|
|
$
|
33,000
|
|
|
$
|
255,000
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
North American Operations
|
|
Australian Operations
|
|
U.K./European Operations
|
|
Total
|
||||||||
Capital Expenditures:
|
|
|
|
|
|
|
|
||||||||
Track and equipment, self-funded
|
$
|
115,673
|
|
|
$
|
7,846
|
|
|
$
|
16,256
|
|
|
$
|
139,775
|
|
Track and equipment, subject to third-party funding
|
16,434
|
|
|
—
|
|
|
—
|
|
|
16,434
|
|
||||
New business investments
|
8,874
|
|
|
21,435
|
|
|
3,637
|
|
|
33,946
|
|
||||
Gross capital expenditures
|
140,981
|
|
|
29,281
|
|
|
19,893
|
|
|
190,155
|
|
||||
Grants from outside parties
|
(15,904
|
)
|
|
—
|
|
|
—
|
|
|
(15,904
|
)
|
||||
Net capital expenditures
|
$
|
125,077
|
|
|
$
|
29,281
|
|
|
$
|
19,893
|
|
|
$
|
174,251
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
United States dollar per Australian dollar
|
$
|
0.72
|
|
|
$
|
0.78
|
|
United States dollar per British pound
|
$
|
1.30
|
|
|
$
|
1.35
|
|
United States dollar per Canadian dollar
|
$
|
0.77
|
|
|
$
|
0.80
|
|
United States dollar per Euro
|
$
|
1.16
|
|
|
$
|
1.20
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
United States dollar per Australian dollar
|
$
|
0.73
|
|
|
$
|
0.79
|
|
|
$
|
0.76
|
|
|
$
|
0.77
|
|
United States dollar per British pound
|
$
|
1.30
|
|
|
$
|
1.31
|
|
|
$
|
1.35
|
|
|
$
|
1.28
|
|
United States dollar per Canadian dollar
|
$
|
0.77
|
|
|
$
|
0.80
|
|
|
$
|
0.78
|
|
|
$
|
0.77
|
|
United States dollar per Euro
|
$
|
1.16
|
|
|
$
|
1.17
|
|
|
$
|
1.19
|
|
|
$
|
1.11
|
|
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 2018
|
(a) Total Number of
Shares (or Units)
Purchased (1)(2)
|
|
(b) Average Price Paid
per Share (or Unit)
|
|
(c) Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs (2)
|
|
(d) Maximum Number
of Shares (or Units)
(or Approximate Dollar Value)
that May Yet Be Purchased
Under the Plans or
Programs (2)
|
||||||
July 1 to July 31
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
107,676,240
|
|
August 1 to August 31
|
481,974
|
|
|
$
|
87.21
|
|
|
481,974
|
|
|
$
|
65,642,994
|
|
September 1 to September 30
|
411,731
|
|
|
$
|
87.76
|
|
|
411,701
|
|
|
$
|
29,511,717
|
|
Total
|
893,705
|
|
|
$
|
87.46
|
|
|
893,675
|
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES.
|
ITEM 4.
|
MINE SAFETY DISCLOSURES.
|
ITEM 5.
|
OTHER INFORMATION.
|
ITEM 6.
|
EXHIBITS.
|
Exhibit
No.
|
|
Description of Exhibits
|
|
|
|
*3.1
|
|
|
|
|
|
*31.1
|
|
|
|
|
|
*31.2
|
|
|
|
|
|
*32.1
|
|
|
|
|
|
*101
|
|
The following financial information from Genesee & Wyoming Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, formatted in XBRL (eXtensible Business Reporting Language) includes: (i) Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, (ii) Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017, (iii) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2018 and 2017, (iv) Consolidated Statements of Changes in Equity for the nine months ended September 30, 2018 and 2017, (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and 2017, and (vi) the Notes to Consolidated Financial Statements.
|
|
|
GENESEE & WYOMING INC.
|
|
|
|
|
|
Date:
|
November 6, 2018
|
By:
|
/s/
T
IMOTHY
J. G
ALLAGHER
|
|
|
Name:
|
Timothy J. Gallagher
|
|
|
Title:
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
Date:
|
November 6, 2018
|
By:
|
/
s/ C
HRISTOPHER
F. L
IUCCI
|
|
|
Name:
|
Christopher F. Liucci
|
|
|
Title:
|
Chief Accounting Officer
(Principal Accounting Officer)
|
(i)
|
Except as otherwise provided by the Certificate of Incorporation or these By-laws, each director shall be elected by the vote of the majority of the votes cast with respect to that director’s election at any meeting of stockholders duly called for the election of directors at which a quorum is present. For purposes of this clause (E)(i), a majority of the votes cast means that the number of shares voted “for” a director’s election must exceed the number of shares voted “against” that director’s election.
|
(ii)
|
In lieu of clause (E)(i) of this Section 4, this clause shall apply to any election of directors if the number of director nominees exceeds the number of directors to be elected. A nominee for director in an election to which this clause applies shall be elected by a plurality
of all voting power present in person or represented by proxy and entitled to vote at a meeting of stockholders duly called for the election of directors and at which a quorum is present.
|
(C)
|
General
.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2018
, 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:
|
November 6, 2018
|
|
/s/ JOHN C. HELLMAN
|
|
|
|
John C. Hellmann,
|
|
|
|
Chairman, Chief Executive Officer and President
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2018
, 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:
|
November 6, 2018
|
|
/s/ TIMOTHY J. GALLAGHER
|
|
|
|
Timothy J. Gallagher,
|
|
|
|
Chief Financial Officer
|
|
|
/s/ JOHN C. HELLMANN
|
|
|
|
John C. Hellmann
|
|
|
|
Chairman, Chief Executive Officer and President
|
|
|
|
Date:
|
November 6, 2018
|
|
|
|
|
|
|
/s/ TIMOTHY J. GALLAGHER
|
|
|
|
Timothy J. Gallagher
|
|
|
|
Chief Financial Officer
|
|
|
|
Date:
|
November 6, 2018
|