|
|
· |
Net income declined to C$461 million, or C$0.97 per diluted share, from year-earlier net income of C$552 million, or C$1.16 per diluted share, largely as a result of lower freight volumes stemming from depressed North American and global economies. |
· |
Revenues declined 18 per cent to C$1,845 million, carloads declined 15 per cent to 1,032 thousand, and revenue ton-miles declined 11 per cent. |
· |
Operating expenses declined 18 per cent to C$1,156 million, reflecting lower year-over-year fuel prices and cost-containment measures in response to lower traffic. |
· |
Operating income declined 18 per cent to C$689 million, while the operating ratio was essentially flat at 62.7 per cent. |
· |
Nine-month 2009 free cash flow increased to C$657 million from C$483 million generated during the comparable period of 2008. (1) |
Media |
Investment Community |
Mark Hallman |
Robert Noorigian |
Director, Communications & Public Affairs |
Vice-President, Investor Relations |
(905) 669-3384 |
(514) 399-0052 |
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED STATEMENT OF INCOME (U.S. GAAP) |
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended | ||||||||
|
|
September 30 |
|
September 30 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
(Unaudited) | ||||||||||
Revenues |
$ |
1,845 |
|
$ |
2,257 |
|
$ |
5,485 |
|
$ |
6,282 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| |
|
Labor and fringe benefits |
|
416 |
|
|
424 |
|
|
1,283 |
|
|
1,277 |
|
Purchased services and material |
|
227 |
|
|
268 |
|
|
771 |
|
|
836 |
|
Fuel |
|
192 |
|
|
390 |
|
|
548 |
|
|
1,099 |
|
Depreciation and amortization |
|
191 |
|
|
177 |
|
|
593 |
|
|
528 |
|
Equipment rents |
|
66 |
|
|
59 |
|
|
218 |
|
|
183 |
|
Casualty and other |
|
64 |
|
|
95 |
|
|
319 |
|
|
285 |
Total operating expenses |
|
1,156 |
|
|
1,413 |
|
|
3,732 |
|
|
4,208 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
689 |
|
|
844 |
|
|
1,753 |
|
|
2,074 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(97) |
|
|
(92) |
|
|
(317) |
|
|
(265) | |
Other income (Note 3) |
|
21 |
|
|
4 |
|
|
191 |
|
|
7 | |
Income before income taxes |
|
613 |
|
|
756 |
|
|
1,627 |
|
|
1,816 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (Note 7) |
|
(152) |
|
|
(204) |
|
|
(355) |
|
|
(494) | |
Net income |
$ |
461 |
|
$ |
552 |
|
$ |
1,272 |
|
$ |
1,322 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note 10) |
|
|
|
|
|
|
|
|
|
|
| |
|
Basic |
$ |
0.98 |
|
$ |
1.17 |
|
$ |
2.71 |
|
$ |
2.77 |
|
Diluted |
$ |
0.97 |
|
$ |
1.16 |
|
$ |
2.69 |
|
$ |
2.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares |
|
|
|
|
|
|
|
|
|
|
| |
|
Basic |
|
469.4 |
|
|
471.7 |
|
|
468.8 |
|
|
477.0 |
|
Diluted |
|
473.8 |
|
|
477.1 |
|
|
473.1 |
|
|
482.6 |
See accompanying notes to unaudited consolidated financial statements. |
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED BALANCE SHEET (U.S. GAAP) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
September 30 |
|
December 31 |
|
September 30 | |||
|
|
2009 |
|
|
2008 |
|
|
2008 |
|
|
(Unaudited) |
|
|
|
|
|
(Unaudited) |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
233 |
|
$ |
413 |
|
$ |
288 |
Accounts receivable (Note 4) |
|
849 |
|
|
913 |
|
|
657 |
Material and supplies |
|
237 |
|
|
200 |
|
|
213 |
Deferred income taxes |
|
70 |
|
|
98 |
|
|
69 |
Other |
|
60 |
|
|
132 |
|
|
131 |
|
|
1,449 |
|
|
1,756 |
|
|
1,358 |
|
|
|
|
|
|
|
|
|
Properties |
|
22,454 |
|
|
23,203 |
|
|
21,472 |
Intangible and other assets |
|
1,849 |
|
|
1,761 |
|
|
2,134 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
25,752 |
|
$ |
26,720 |
|
$ |
24,964 |
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and other |
$ |
1,159 |
|
$ |
1,386 |
|
$ |
1,329 |
Current portion of long-term debt |
|
89 |
|
|
506 |
|
|
449 |
|
|
1,248 |
|
|
1,892 |
|
|
1,778 |
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
5,363 |
|
|
5,511 |
|
|
5,246 |
Other liabilities and deferred credits |
|
1,227 |
|
|
1,353 |
|
|
1,378 |
Long-term debt (Note 4) |
|
6,511 |
|
|
7,405 |
|
|
6,264 |
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Common shares |
|
4,239 |
|
|
4,179 |
|
|
4,171 |
Accumulated other comprehensive income (loss) |
|
(288) |
|
|
(155) |
|
|
54 |
Retained earnings |
|
7,452 |
|
|
6,535 |
|
|
6,073 |
|
|
11,403 |
|
|
10,559 |
|
|
10,298 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
25,752 |
|
$ |
26,720 |
|
$ |
24,964 |
See accompanying notes to unaudited consolidated financial statements. |
|
|
|
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (U.S. GAAP) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended | ||||||||
|
September 30 |
|
September 30 | ||||||||
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
(Unaudited) | ||||||||||
Common shares (1) |
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
4,203 |
|
$ |
4,208 |
|
$ |
4,179 |
|
$ |
4,283 |
Stock options exercised and other |
|
36 |
|
|
17 |
|
|
60 |
|
|
59 |
Share repurchase programs (Note 4) |
|
- |
|
|
(54) |
|
|
- |
|
|
(171) |
Balance, end of period |
$ |
4,239 |
|
$ |
4,171 |
|
$ |
4,239 |
|
$ |
4,171 |
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
(207) |
|
$ |
(1) |
|
$ |
(155) |
|
$ |
(31) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign exchange gain (loss) on: |
|
|
|
|
|
|
|
|
|
|
|
Translation of the net investment in foreign operations |
|
(552) |
|
|
259 |
|
|
(884) |
|
|
399 |
Translation of U.S. dollar-denominated long-term debt |
|
|
|
|
|
|
|
|
|
|
|
designated as a hedge of the net investment in U.S. subsidiaries |
|
541 |
|
|
(248) |
|
|
863 |
|
|
(389) |
Pension and other postretirement benefit plans (Note 6): |
|
|
|
|
|
|
|
|
|
|
|
Amortization of prior service cost included in net |
|
|
|
|
|
|
|
|
|
|
|
periodic benefit cost |
|
1 |
|
|
6 |
|
|
2 |
|
|
18 |
Amortization of net actuarial loss (gain) included in net |
|
|
|
|
|
|
|
|
|
|
|
periodic benefit cost (income) |
|
- |
|
|
- |
|
|
1 |
|
|
(2) |
Other comprehensive income (loss) before income taxes |
|
(10) |
|
|
17 |
|
|
(18) |
|
|
26 |
Income tax recovery (expense) |
|
(71) |
|
|
38 |
|
|
(115) |
|
|
59 |
Other comprehensive income (loss) |
|
(81) |
|
|
55 |
|
|
(133) |
|
|
85 |
Balance, end of period |
$ |
(288) |
|
$ |
54 |
|
$ |
(288) |
|
$ |
54 |
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings |
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
$ |
7,110 |
|
$ |
5,902 |
|
$ |
6,535 |
|
$ |
5,925 |
Net income |
|
461 |
|
|
552 |
|
|
1,272 |
|
|
1,322 |
Share repurchase programs (Note 4) |
|
- |
|
|
(273) |
|
|
- |
|
|
(846) |
Dividends |
|
(119) |
|
|
(108) |
|
|
(355) |
|
|
(328) |
Balance, end of period |
$ |
7,452 |
|
$ |
6,073 |
|
$ |
7,452 |
|
$ |
6,073 |
See accompanying notes to unaudited consolidated financial statements. |
CANADIAN NATIONAL RAILWAY COMPANY |
CONSOLIDATED STATEMENT OF CASH FLOWS (U.S. GAAP) |
(In millions) |
|
|
Three months ended |
|
|
Nine months ended | ||||||
|
|
September 30 |
|
|
September 30 | ||||||
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
(Unaudited) | |||||||||
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
461 |
|
$ |
552 |
|
$ |
1,272 |
|
$ |
1,322 |
Adjustments to reconcile net income to net cash |
|
|
|
|
|
|
|
|
|
|
|
provided from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
191 |
|
|
177 |
|
|
593 |
|
|
528 |
Deferred income taxes |
|
96 |
|
|
73 |
|
|
146 |
|
|
187 |
Gain on disposal of property (Note 3) |
|
- |
|
|
- |
|
|
(157) |
|
|
- |
Other changes in: |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(31) |
|
|
209 |
|
|
(2) |
|
|
(259) |
Material and supplies |
|
16 |
|
|
6 |
|
|
(33) |
|
|
(48) |
Accounts payable and other |
|
(51) |
|
|
(1) |
|
|
(192) |
|
|
(99) |
Other current assets |
|
45 |
|
|
(16) |
|
|
86 |
|
|
35 |
Other |
|
(77) |
|
|
(43) |
|
|
(113) |
|
|
(135) |
Cash provided from operating activities |
|
650 |
|
|
957 |
|
|
1,600 |
|
|
1,531 |
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
Property additions |
|
(342) |
|
|
(415) |
|
|
(838) |
|
|
(944) |
Acquisitions, net of cash acquired (Note 3) |
|
- |
|
|
- |
|
|
(373) |
|
|
- |
Disposal of property (Note 3) |
|
7 |
|
|
- |
|
|
157 |
|
|
- |
Other, net |
|
13 |
|
|
22 |
|
|
50 |
|
|
42 |
Cash used by investing activities |
|
(322) |
|
|
(393) |
|
|
(1,004) |
|
|
(902) |
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
Issuance of long-term debt |
|
185 |
|
|
778 |
|
|
1,625 |
|
|
3,430 |
Reduction of long-term debt |
|
(611) |
|
|
(798) |
|
|
(2,070) |
|
|
(2,796) |
Issuance of common shares due to exercise of stock |
|
|
|
|
|
|
|
|
| ||
options and related excess tax benefits realized |
|
34 |
|
|
14 |
|
|
49 |
|
|
48 |
Repurchase of common shares |
|
- |
|
|
(327) |
|
|
- |
|
|
(1,017) |
Dividends paid |
|
(119) |
|
|
(108) |
|
|
(355) |
|
|
(328) |
Cash used by financing activities |
|
(511) |
|
|
(441) |
|
|
(751) |
|
|
(663) |
Effect of foreign exchange fluctuations on U.S. |
|
|
|
|
|
|
|
|
|
|
|
dollar-denominated cash and cash equivalents |
|
(15) |
|
|
4 |
|
|
(25) |
|
|
12 |
Net increase (decrease) in cash and cash equivalents |
|
(198) |
|
|
127 |
|
|
(180) |
|
|
(22) |
Cash and cash equivalents, beginning of period |
|
431 |
|
|
161 |
|
|
413 |
|
|
310 |
Cash and cash equivalents, end of period |
$ |
233 |
|
$ |
288 |
|
$ |
233 |
|
$ |
288 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information |
|
|
|
|
|
|
|
|
|
|
|
Net cash receipts from customers and other |
$ |
1,802 |
|
$ |
2,391 |
|
$ |
5,540 |
|
$ |
6,025 |
Net cash payments for: |
|
|
|
|
|
|
|
|
|
|
|
Employee services, suppliers and other expenses |
|
(925) |
|
|
(1,195) |
|
|
(3,257) |
|
|
(3,749) |
Interest |
|
(107) |
|
|
(82) |
|
|
(306) |
|
|
(272) |
Workforce reductions |
|
(5) |
|
|
(5) |
|
|
(13) |
|
|
(17) |
Personal injury and other claims |
|
(21) |
|
|
(18) |
|
|
(86) |
|
|
(62) |
Pensions |
|
(57) |
|
|
(24) |
|
|
(85) |
|
|
(77) |
Income taxes |
|
(37) |
|
|
(110) |
|
|
(193) |
|
|
(317) |
Cash provided from operating activities |
$ |
650 |
|
$ |
957 |
|
$ |
1,600 |
|
$ |
1,531 |
See accompanying notes to unaudited consolidated financial statements. | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
At January 31, 2009 | ||
(In U.S. millions) |
| |
|
|
|
Consideration |
| |
Cash |
$ |
300 |
Fair value of total consideration transferred |
$ |
300 |
|
|
|
Recognized amounts of identifiable assets acquired and liabilities assumed |
|
|
Current assets |
$ |
6 |
Other long-term assets |
|
4 |
Property, plant and equipment |
|
304 |
Current liabilities |
|
(4) |
Other long-term liabilities |
|
(10) |
Total identifiable net assets |
$ |
300 |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
The following table provides the 2009 activity for all cash settled awards: |
|
|
||||||
|
||||||||
|
|
|
RSUs |
Voluntary Incentive Deferral Plan (VIDP) |
||||
In millions |
|
|
Nonvested |
Vested |
Nonvested |
Vested |
||
Outstanding at December 31, 2008 |
|
|
1.3 |
0.9 |
(1) |
0.1 |
1.8 |
|
Granted |
|
|
0.9 |
- |
- |
0.1 |
(2) | |
Transferred into plan |
|
|
- |
- |
- |
0.1 |
||
Payout |
|
|
- |
(0.9) |
- |
(0.2) |
||
Outstanding at September 30, 2009 |
|
|
2.2 |
- |
0.1 |
1.8 |
||
(1) Includes 0.1 million of 2004 time-vested RSUs. |
|
|
|
|||||
(2) Includes the Company's match and dividends earned on original deferred share units. |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
The following table provides valuation and expense information for all cash settled awards: | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
In millions, unless otherwise indicated |
RSUs (1) |
|
Vision (1) |
|
VIDP (2) |
|
|
Total | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2003 |
|
|
| |||
Year of grant |
2009 |
|
2008 |
|
2007 |
|
2006 |
|
2004 |
|
2005 |
|
onwards |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Stock-based compensation expense (recovery) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
recognized over requisite service period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Nine months ended September 30, 2009 |
$ |
18 |
|
$ |
4 |
|
$ |
11 |
|
$ |
(2) |
|
|
N/A |
|
|
N/A |
|
$ |
24 |
|
$ |
55 | |
Nine months ended September 30, 2008 |
|
N/A |
|
$ |
11 |
|
$ |
1 |
|
$ |
14 |
|
$ |
3 |
|
$ |
2 |
|
$ |
8 |
|
$ |
39 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Liability outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
September 30, 2009 |
$ |
18 |
|
$ |
12 |
|
$ |
20 |
|
$ |
- |
|
$ |
- |
|
|
N/A |
|
$ |
98 |
|
$ |
148 | |
December 31, 2008 |
|
N/A |
|
$ |
8 |
|
$ |
9 |
|
$ |
53 |
|
$ |
3 |
|
$ |
- |
|
$ |
88 |
|
$ |
161 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Fair value per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
September 30, 2009 ($) |
$ |
41.39 |
|
$ |
32.88 |
|
$ |
36.45 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
$ |
52.73 |
|
|
N/A | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Fair value of awards vested during period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Nine months ended September 30, 2009 |
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
$ |
1 |
|
$ |
1 | |
Nine months ended September 30, 2008 |
|
N/A |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
2 |
|
$ |
2 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Nonvested awards at September 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Unrecognized compensation cost |
$ |
13 |
|
$ |
4 |
|
$ |
1 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
$ |
2 |
|
$ |
20 | |
Remaining recognition period (years) |
|
2.25 |
|
|
1.25 |
|
|
0.25 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
3.25 |
|
|
N/A | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Assumptions (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Stock price ($) |
$ |
52.73 |
|
$ |
52.73 |
|
$ |
52.73 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
$ |
52.73 |
|
|
N/A | |
Expected stock price volatility (4) |
|
32% |
|
|
36% |
|
|
36% |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A | |
Expected term (years) (5) |
|
2.25 |
|
|
1.25 |
|
|
0.25 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A | |
Risk-free interest rate (6) |
|
1.42% |
|
|
0.74% |
|
|
0.22% |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A | |
Dividend rate ($) (7) |
$ |
1.01 |
|
$ |
1.01 |
|
$ |
1.01 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
(1) |
Compensation cost is based on the fair value of the awards at period-end using the lattice-based valuation model that uses the assumptions as presented herein. | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
(2) |
Compensation cost is based on intrinsic value. |
|
|
|
|
|
|
|
|
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
(3) |
Assumptions used to determine fair value are at September 30, 2009. |
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
(4) |
Based on the historical volatility of the Company's stock over a period commensurate with the expected term of the award. | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
(5) |
Represents the remaining period of time that awards are expected to be outstanding. |
| ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
(6) |
Based on the implied yield available on zero-coupon government issues with an equivalent term commensurate with the expected term of the awards. | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
(7) |
Based on the annualized dividend rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
Options outstanding | |||||||
|
Weighted- |
|
| ||||
|
Number |
average |
Weighted-average |
Aggregate | |||
|
of options |
exercise price |
years to expiration |
intrinsic value | |||
In millions |
|
|
|
In millions | |||
Outstanding at December 31, 2008 (1) |
13.2 |
$ |
29.05 |
|
|
| |
Granted |
1.2 |
$ |
42.13 |
|
|
| |
Exercised |
(1.9) |
$ |
19.14 |
|
|
| |
Outstanding at September 30, 2009 (1) |
12.5 |
$ |
30.27 |
4.4 |
$ |
281 | |
Exercisable at September 30, 2009 (1) |
9.9 |
$ |
26.53 |
3.4 |
$ |
261 | |
|
|
|
|
|
|
| |
(1) |
Stock options with a U.S. dollar exercise price have been translated to Canadian dollars using the foreign exchange rate in effect at the balance sheet date. |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
The following table provides valuation and expense information for all stock option awards: | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions, unless otherwise indicated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Year of grant |
|
|
2009 |
|
|
2008 |
|
|
2007 |
|
|
2006 |
|
|
2005 |
|
|
Total | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
recognized over requisite service period (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Nine months ended September 30, 2009 |
$ |
8 |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
- |
|
$ |
11 | |||
Nine months ended September 30, 2008 |
|
N/A |
|
$ |
5 |
|
$ |
2 |
|
$ |
2 |
|
$ |
2 |
|
$ |
11 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
At grant date ($) |
$ |
12.60 |
|
$ |
12.44 |
|
$ |
13.36 |
|
$ |
13.80 |
|
$ |
9.19 |
|
|
N/A | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of awards vested during period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Nine months ended September 30, 2009 |
$ |
- |
|
$ |
3 |
|
$ |
3 |
|
$ |
3 |
|
$ |
3 |
|
$ |
12 | |||
Nine months ended September 30, 2008 |
|
N/A |
|
$ |
- |
|
$ |
3 |
|
$ |
3 |
|
$ |
3 |
|
$ |
9 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonvested awards at September 30, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Unrecognized compensation cost |
$ |
7 |
|
$ |
3 |
|
$ |
2 |
|
$ |
1 |
|
$ |
- |
|
$ |
13 | |||
Remaining recognition period (years) |
|
3.3 |
|
|
2.3 |
|
|
1.3 |
|
|
0.3 |
|
|
- |
|
|
N/A | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumptions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Grant price ($) |
$ |
42.13 |
|
$ |
48.51 |
|
$ |
52.79 |
|
$ |
51.51 |
|
$ |
36.33 |
|
|
N/A | |||
Expected stock price volatility (2) |
|
39% |
|
|
27% |
|
|
24% |
|
|
25% |
|
|
25% |
|
|
N/A | |||
Expected term (years) (3) |
|
5.3 |
|
|
5.3 |
|
|
5.2 |
|
|
5.2 |
|
|
5.2 |
|
|
N/A | |||
Risk-free interest rate (4) |
|
1.97% |
|
|
3.58% |
|
|
4.12% |
|
|
4.04% |
|
|
3.50% |
|
|
N/A | |||
Dividend rate ($) (5) |
$ |
1.01 |
|
$ |
0.92 |
|
$ |
0.84 |
|
$ |
0.65 |
|
$ |
0.50 |
|
|
N/A | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Compensation cost is based on the grant date fair value using the Black-Scholes option-pricing model that uses the assumptions at the grant date. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Based on the average of the historical volatility of the Company's stock over a period commensurate with the expected term of the award and the implied volatility from traded options on the Company's stock. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) |
Represents the period of time that awards are expected to be outstanding. The Company uses historical data to estimate option exercise and employee termination, and groups of employees that have similar historical exercise behavior are considered separately. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) |
Based on the implied yield available on zero-coupon government issues with an equivalent term commensurate with the expected term of the awards. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) |
Based on the annualized dividend rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
(a) Components of net periodic benefit income for pensions | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended | ||||
|
|
September 30 |
|
|
September 30 | ||||
In millions |
|
2009 |
|
2008 |
|
|
2009 |
|
2008 |
Service cost |
$ |
21 |
$ |
34 |
|
$ |
65 |
$ |
104 |
Interest cost |
|
222 |
|
200 |
|
|
665 |
|
600 |
Expected return on plan assets |
|
(252) |
|
(251) |
|
|
(756) |
|
(753) |
Amortization of prior service cost |
|
- |
|
5 |
|
|
- |
|
15 |
Recognized net actuarial loss |
|
1 |
|
- |
|
|
4 |
|
- |
Net periodic benefit (income) |
$ |
(8) |
$ |
(12) |
|
$ |
(22) |
$ |
(34) |
|
|
|
|
|
|
|
|
|
|
(b) Components of net periodic benefit cost for other postretirement benefits | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended | ||||
|
|
September 30 |
|
|
September 30 | ||||
In millions |
|
2009 |
|
2008 |
|
|
2009 |
|
2008 |
Service cost |
$ |
- |
$ |
1 |
|
$ |
2 |
$ |
3 |
Interest cost |
|
4 |
|
4 |
|
|
12 |
|
12 |
Curtailment gain |
|
- |
|
(4) |
|
|
(3) |
|
(7) |
Amortization of prior service cost |
|
1 |
|
1 |
|
|
2 |
|
3 |
Recognized net actuarial gain |
|
(1) |
|
- |
|
|
(3) |
|
(2) |
Net periodic benefit cost |
$ |
4 |
$ |
2 |
|
$ |
10 |
$ |
9 |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
(i) |
the lack of specific technical information available with respect to many sites; |
(ii) |
the absence of any government authority, third-party orders, or claims with respect to particular sites; |
(iii) |
the potential for new or changed laws and regulations and for development of new remediation technologies and uncertainty regarding the timing of the work with respect to particular sites; |
(iv) |
the ability to recover costs from any third parties with respect to particular sites; and |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
(a) |
contracts granting the Company the right to use or enter upon property owned by third parties such as leases, easements, trackage rights and sidetrack agreements; |
(b) |
contracts granting rights to others to use the Company’s property, such as leases, licenses and easements; |
(c) |
contracts for the sale of assets and securitization of accounts receivable; |
(d) |
contracts for the acquisition of services; |
(e) |
financing agreements; |
(f) |
trust indentures, fiscal agency agreements, underwriting agreements or similar agreements relating to debt or equity securities of the Company and engagement agreements with financial advisors; |
(g) |
transfer agent and registrar agreements in respect of the Company’s securities; |
(h) |
trust and other agreements relating to pension plans and other plans, including those establishing trust funds to secure payment to certain officers and senior employees of special retirement compensation arrangements; |
(i) |
pension transfer agreements; |
(j) |
master agreements with financial institutions governing derivative transactions; and |
(k) |
settlement agreements with insurance companies or other third parties whereby such insurer or third party has been indemnified for any present or future claims relating to insurance policies, incidents or events covered by the settlement agreements. |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
In millions |
|
September 30, 2009 |
|
|
December 31, 2008 | |||||
|
|
|
Carrying |
|
Fair |
|
|
Carrying |
|
Fair |
|
|
|
amount |
|
value |
|
|
amount |
|
value |
Financial assets |
|
|
|
|
|
|
|
|
| |
|
Investments |
$ |
22 |
$ |
112 |
|
$ |
24 |
$ |
127 |
Financial liabilities |
|
|
|
|
|
|
|
|
| |
|
Long-term debt (including current portion) |
$ |
6,600 |
$ |
7,519 |
|
$ |
7,911 |
$ |
8,301 |
CANADIAN NATIONAL RAILWAY COMPANY |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (U.S. GAAP) |
|
|
Three months ended |
|
Nine months ended | ||||||||
|
|
September 30 |
|
September 30 | ||||||||
In millions, except per share data |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
461 |
|
$ |
552 |
|
$ |
1,272 |
|
$ |
1,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
469.4 |
|
|
471.7 |
|
|
468.8 |
|
|
477.0 |
Effect of stock options |
|
|
4.4 |
|
|
5.4 |
|
|
4.3 |
|
|
5.6 |
Weighted-average diluted shares outstanding |
|
|
473.8 |
|
|
477.1 |
|
|
473.1 |
|
|
482.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.98 |
|
$ |
1.17 |
|
$ |
2.71 |
|
$ |
2.77 |
Diluted earnings per share |
|
$ |
0.97 |
|
$ |
1.16 |
|
$ |
2.69 |
|
$ |
2.74 |
CANADIAN NATIONAL RAILWAY COMPANY |
SELECTED RAILROAD STATISTICS (1) (U.S. GAAP) |
|
|
|
|
| |
Three months ended |
|
Nine months ended | |||
September 30 |
|
September 30 | |||
2009 |
2008 |
|
2009 |
2008 | |
(Unaudited) | |||||
Statistical operating data |
|
|
|
|
|
|
|
|
|
| |
Rail freight revenues ($ millions) |
1,656 |
2,028 |
|
4,953 |
5,664 |
Gross ton miles (GTM) (millions) |
77,817 |
86,369 |
|
225,930 |
257,983 |
Revenue ton miles (RTM) (millions) |
40,487 |
45,346 |
|
118,043 |
135,569 |
Carloads (thousands) |
1,032 |
1,217 |
|
2,914 |
3,537 |
Route miles (includes Canada and the U.S.) |
21,104 |
20,421 |
|
21,104 |
20,421 |
Employees (end of period) |
21,579 |
22,569 |
|
21,579 |
22,569 |
Employees (average for the period) |
21,610 |
22,730 |
|
21,899 |
22,773 |
|
|
|
|
| |
Productivity |
|
|
|
|
|
|
|
|
|
| |
Operating ratio (%) |
62.7 |
62.6 |
|
68.0 |
67.0 |
Rail freight revenue per RTM (cents) |
4.09 |
4.47 |
|
4.20 |
4.18 |
Rail freight revenue per carload ($) |
1,605 |
1,666 |
|
1,700 |
1,601 |
Operating expenses per GTM (cents) |
1.49 |
1.64 |
|
1.65 |
1.63 |
Labor and fringe benefits expense per GTM (cents) |
0.53 |
0.49 |
|
0.57 |
0.49 |
GTMs per average number of employees (thousands) |
3,601 |
3,800 |
|
10,317 |
11,328 |
Diesel fuel consumed (U.S. gallons in millions) |
79 |
92 |
|
244 |
287 |
Average fuel price ($/U.S. gallon) |
2.19 |
3.84 |
|
2.05 |
3.55 |
GTMs per U.S. gallon of fuel consumed |
985 |
939 |
|
926 |
899 |
|
|
|
|
| |
Safety indicators |
|
|
|
|
|
|
|
|
|
| |
Injury frequency rate per 200,000 person hours (2) |
2.10 |
2.13 |
|
1.68 |
1.80 |
Accident rate per million train miles (2) |
1.98 |
2.16 |
|
1.94 |
2.50 |
|
|
|
|
| |
Financial ratio |
|
|
|
|
|
|
|
|
|
| |
Debt to total capitalization ratio (% at end of period) |
36.7 |
39.5 |
|
36.7 |
39.5 |
(1) Includes data relating to companies acquired as of the date of acquisition. | |||||
(2) Based on Federal Railroad Administration (FRA) reporting criteria. |
CANADIAN NATIONAL RAILWAY COMPANY |
SUPPLEMENTARY INFORMATION (U.S. GAAP) |
|
Three months ended September 30 |
|
Nine months ended September 30 | ||||
|
|
|
Variance |
|
|
|
Variance |
|
2009 |
2008 |
Fav (Unfav) |
|
2009 |
2008 |
Fav (Unfav) |
|
(Unaudited) | ||||||
Revenues (millions of dollars) |
|
|
|
|
|
|
|
Petroleum and chemicals |
309 |
346 |
(11%) |
|
958 |
987 |
(3%) |
Metals and minerals |
183 |
269 |
(32%) |
|
539 |
713 |
(24%) |
Forest products |
291 |
383 |
(24%) |
|
876 |
1,070 |
(18%) |
Coal |
128 |
140 |
(9%) |
|
342 |
346 |
(1%) |
Grain and fertilizers |
298 |
327 |
(9%) |
|
985 |
1,001 |
(2%) |
Intermodal |
359 |
446 |
(20%) |
|
996 |
1,190 |
(16%) |
Automotive |
88 |
117 |
(25%) |
|
257 |
357 |
(28%) |
Total rail freight revenue |
1,656 |
2,028 |
(18%) |
|
4,953 |
5,664 |
(13%) |
Other revenues |
189 |
229 |
(17%) |
|
532 |
618 |
(14%) |
Total revenues |
1,845 |
2,257 |
(18%) |
|
5,485 |
6,282 |
(13%) |
|
|
|
|
|
|
|
|
Revenue ton miles (millions) |
|
|
|
|
|
|
|
Petroleum and chemicals |
7,470 |
8,272 |
(10%) |
|
22,111 |
24,668 |
(10%) |
Metals and minerals |
3,422 |
5,140 |
(33%) |
|
9,487 |
13,971 |
(32%) |
Forest products |
7,288 |
8,715 |
(16%) |
|
20,684 |
25,999 |
(20%) |
Coal |
4,343 |
4,159 |
4% |
|
10,629 |
11,189 |
(5%) |
Grain and fertilizers |
8,971 |
9,379 |
(4%) |
|
29,578 |
31,915 |
(7%) |
Intermodal |
8,480 |
9,040 |
(6%) |
|
24,064 |
25,795 |
(7%) |
Automotive |
513 |
641 |
(20%) |
|
1,490 |
2,032 |
(27%) |
|
40,487 |
45,346 |
(11%) |
|
118,043 |
135,569 |
(13%) |
Rail freight revenue / RTM (cents) |
|
|
|
|
|
|
|
Total rail freight revenue per RTM |
4.09 |
4.47 |
(9%) |
|
4.20 |
4.18 |
- |
Commodity groups: |
|
|
|
|
|
|
|
Petroleum and chemicals |
4.14 |
4.18 |
(1%) |
|
4.33 |
4.00 |
8% |
Metals and minerals |
5.35 |
5.23 |
2% |
|
5.68 |
5.10 |
11% |
Forest products |
3.99 |
4.39 |
(9%) |
|
4.24 |
4.12 |
3% |
Coal |
2.95 |
3.37 |
(12%) |
|
3.22 |
3.09 |
4% |
Grain and fertilizers |
3.32 |
3.49 |
(5%) |
|
3.33 |
3.14 |
6% |
Intermodal |
4.23 |
4.93 |
(14%) |
|
4.14 |
4.61 |
(10%) |
Automotive |
17.15 |
18.25 |
(6%) |
|
17.25 |
17.57 |
(2%) |
|
|
|
|
|
|
|
|
Carloads (thousands) |
|
|
|
|
|
|
|
Petroleum and chemicals |
132 |
139 |
(5%) |
|
385 |
424 |
(9%) |
Metals and minerals |
189 |
287 |
(34%) |
|
497 |
797 |
(38%) |
Forest products |
103 |
132 |
(22%) |
|
303 |
395 |
(23%) |
Coal |
116 |
103 |
13% |
|
313 |
280 |
12% |
Grain and fertilizers |
121 |
137 |
(12%) |
|
383 |
436 |
(12%) |
Intermodal |
333 |
370 |
(10%) |
|
925 |
1,045 |
(11%) |
Automotive |
38 |
49 |
(22%) |
|
108 |
160 |
(33%) |
|
1,032 |
1,217 |
(15%) |
|
2,914 |
3,537 |
(18%) |
Rail freight revenue / carload (dollars) |
|
|
|
|
|
|
|
Total rail freight revenue per carload |
1,605 |
1,666 |
(4%) |
|
1,700 |
1,601 |
6% |
Commodity groups: |
|
|
|
|
|
|
|
Petroleum and chemicals |
2,341 |
2,489 |
(6%) |
|
2,488 |
2,328 |
7% |
Metals and minerals |
968 |
937 |
3% |
|
1,085 |
895 |
21% |
Forest products |
2,825 |
2,902 |
(3%) |
|
2,891 |
2,709 |
7% |
Coal |
1,103 |
1,359 |
(19%) |
|
1,093 |
1,236 |
(12%) |
Grain and fertilizers |
2,463 |
2,387 |
3% |
|
2,572 |
2,296 |
12% |
Intermodal |
1,078 |
1,205 |
(11%) |
|
1,077 |
1,139 |
(5%) |
Automotive |
2,316 |
2,388 |
(3%) |
|
2,380 |
2,231 |
7% |
CANADIAN NATIONAL RAILWAY COMPANY |
NON-GAAP MEASURES - unaudited |
|
|
Three months ended |
|
|
Nine months ended | ||||||||
|
|
September 30, 2009 |
|
|
September 30, 2009 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions, except per share data |
Reported |
|
Adjustments |
|
Adjusted |
|
|
Reported |
|
Adjustments |
|
Adjusted | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
1,845 |
$ |
- |
$ |
1,845 |
|
$ |
5,485 |
$ |
- |
$ |
5,485 |
Operating expenses |
|
1,156 |
|
- |
|
1,156 |
|
|
3,732 |
|
(49) |
|
3,683 |
Operating income |
|
689 |
|
- |
|
689 |
|
|
1,753 |
|
49 |
|
1,802 |
Interest expense |
|
(97) |
|
- |
|
(97) |
|
|
(317) |
|
- |
|
(317) |
Other income |
|
21 |
|
- |
|
21 |
|
|
191 |
|
(157) |
|
34 |
Income before income taxes |
|
613 |
|
- |
|
613 |
|
|
1,627 |
|
(108) |
|
1,519 |
Income tax expense |
|
(152) |
|
(15) |
|
(167) |
|
|
(355) |
|
(55) |
|
(410) |
Net income |
$ |
461 |
$ |
(15) |
$ |
446 |
|
$ |
1,272 |
$ |
(163) |
$ |
1,109 |
Operating ratio |
|
62.7% |
|
|
|
62.7% |
|
|
68.0% |
|
|
|
67.1% |
Basic earnings per share |
$ |
0.98 |
$ |
(0.03) |
$ |
0.95 |
|
$ |
2.71 |
$ |
(0.35) |
$ |
2.36 |
Diluted earnings per share |
$ |
0.97 |
$ |
(0.03) |
$ |
0.94 |
|
$ |
2.69 |
$ |
(0.35) |
$ |
2.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CANADIAN NATIONAL RAILWAY COMPANY |
NON-GAAP MEASURES - unaudited |
|
Three months ended |
|
|
Nine months ended | |||||||||
|
|
September 30, 2008 |
|
|
September 30, 2008 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions, except per share data |
|
Reported |
|
Adjustments |
|
Adjusted |
|
|
Reported |
|
Adjustments |
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
2,257 |
$ |
- |
$ |
2,257 |
|
$ |
6,282 |
$ |
- |
$ |
6,282 |
Operating expenses |
|
1,413 |
|
- |
|
1,413 |
|
|
4,208 |
|
- |
|
4,208 |
Operating income |
|
844 |
|
- |
|
844 |
|
|
2,074 |
|
- |
|
2,074 |
Interest expense |
|
(92) |
|
- |
|
(92) |
|
|
(265) |
|
- |
|
(265) |
Other income |
|
4 |
|
- |
|
4 |
|
|
7 |
|
- |
|
7 |
Income before income taxes |
|
756 |
|
- |
|
756 |
|
|
1,816 |
|
- |
|
1,816 |
Income tax expense |
|
(204) |
|
(41) |
|
(245) |
|
|
(494) |
|
(75) |
|
(569) |
Net income |
$ |
552 |
$ |
(41) |
$ |
511 |
|
$ |
1,322 |
$ |
(75) |
$ |
1,247 |
Operating ratio |
|
62.6% |
|
|
|
62.6% |
|
|
67.0% |
|
|
|
67.0% |
Basic earnings per share |
$ |
1.17 |
$ |
(0.09) |
$ |
1.08 |
|
$ |
2.77 |
$ |
(0.16) |
$ |
2.61 |
Diluted earnings per share |
$ |
1.16 |
$ |
(0.09) |
$ |
1.07 |
|
$ |
2.74 |
$ |
(0.16) |
$ |
2.58 |
|
Three months ended |
|
Nine months ended | ||||||||
|
September 30 |
|
September 30 | ||||||||
In millions |
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
|
|
|
|
|
|
| |||
Cash provided from operating activities |
$ |
650 |
|
$ |
957 |
|
$ |
1,600 |
|
$ |
1,531 |
Cash used by investing activities |
|
(322) |
|
|
(393) |
|
|
(1,004) |
|
|
(902) |
Cash provided before financing activities |
|
328 |
|
|
564 |
|
|
596 |
|
|
629 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Change in accounts receivable securitization |
|
- |
|
|
(202) |
|
|
68 |
|
|
170 |
Dividends paid |
|
(119) |
|
|
(108) |
|
|
(355) |
|
|
(328) |
Acquisition of EJ&E |
|
- |
|
|
- |
|
|
373 |
|
|
- |
Effect of foreign exchange fluctuations on U.S. dollar-denominated |
|
|
|
|
| ||||||
cash and cash equivalents |
|
(15) |
|
|
4 |
|
|
(25) |
|
|
12 |
Free cash flow |
$ |
194 |
|
$ |
258 |
|
$ |
657 |
|
$ |
483 |
Canadian National Railway Company |
|||||
Date: October 20, 2009 |
By: |
/s/ Cristina Circelli |
|||
Name: |
Cristina Circelli |
||||
Title: |
Deputy Corporate Secretary and
General Counsel |