FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Report of Foreign Issuer
 
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
For the month of May, 2009
 
Commission File Number: 001-02413
 
Canadian National Railway Company
(Translation of registrant’s name into English)
 
935 de la Gauchetiere Street West
Montreal, Quebec
Canada H3B 2M9

(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F           Form 40-F    X  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes           No    X  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes           No    X  

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes           No    X  

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A


 
 
Canadian National Railway Company

Table of Contents
 
Item
 
1.
2008 Update CN Investor Fact Book
 
 
 

 
Item 1
 
 
 
 
 

 
 
Ticker symbols


CNR
Toronto Stock Exchange


CNI
New York Stock Exchange
 
 

 

 
Except where otherwise indicated, all financial information reflected in this document is expressed in Canadian dollars and determined on the basis of United States generally accepted accounting principles (U.S. GAAP). The Company’s objective is to provide meaningful and relevant information reflecting the Company’s financial condition, results of operations and operational performance. In certain instances, the Company may make reference to certain non-GAAP measures that, from management’s perspective, are useful measures of performance. In addition, certain statistical data are based on estimated data available at such time and are subject to change as more complete information becomes available. The reader is advised to read all information provided in this document in conjunction with the Company’s 2008 Annual Consolidated Financial Statements, Notes thereto and Management’s discussion and analysis (MD&A).
 
The Company makes reference to non-GAAP measures in this document that do not have any standardized meaning prescribed by U.S. GAAP and are, therefore, not necessarily comparable to similar measures presented by other companies and, as such, should not be considered in isolation. Management believes that non-GAAP measures such as adjusted net income and the resulting adjusted performance measures for such items as operating income, operating ratio and per share data are useful measures of performance that can facilitate period-to-period comparisons as they exclude items that do not arise as part of the normal day-to-day operations or that could potentially distort the analysis of trends in business performance. The exclusion of the specified items in the adjusted measures do not, however, imply that such items are necessarily non-recurring. The Company also believes that free cash flow is a useful measure of performance as it demonstrates the Company's ability to generate cash after the payment of capital expenditures and dividends. Free cash flow does not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies. The Company defines free cash flow as cash provided from operating activities, excluding changes in the accounts receivable securitization program and changes in cash and cash equivalents resulting from foreign exchange fluctuations, less cash used by investing activities and the payment of dividends. In addition, the Company believes that adjusted debt-to-total capitalization is a useful credit measure that aims to show the true leverage of the Company. Similarly, adjusted debt-to-adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) is another useful credit measure because it reflects the Company’s ability to service its debt. The Company excludes Other income in the calculation of EBITDA. A reconciliation of the various non-GAAP measures presented in this document to their comparable U.S. GAAP measures is provided in Appendix A.
 
 
1

 
Financial & statistical highlights
 
 
Financial highlights


$ in millions, except per share data, or unless otherwise indicated

   
2006
   
2007
   
2008
 
                   
Financial results
                 
Revenues
  $ 7,929     $ 7,897     $ 8,482  
Operating income
  $ 3,030     $ 2,876     $ 2,894  
Adjusted net income (1)
  $ 1,810     $ 1,725     $ 1,778  
Adjusted diluted earnings per share (1)
 
$
3.40
   
$
3.40
   
$
3.71
 
Weighted-average number of
                       
shares diluted (millions)
    534.3       508.0       480.0  
                         
Financial ratios
                       
Operating ratio
    61.8%       63.6%       65.9%  
Debt-to-total capitalization
    36.3%       35.6%       42.8%  
Adjusted debt-to-total capitalization (2,4)
    40.4%       40.4%       45.2%  
Adjusted debt-to-adjusted EBITDA (2,3,4)
 
1.8 times
   
1.9 times
   
2.4 times
 
                   
Other information
                       
Dividend per share
  $ 0.65    
$
0.84
   
$
0.92
 
Net capital expenditures
  $ 1,298     $ 1,387     $ 1,424  
Free cash flow (4)
  $ 1,343     $ 828     $ 794  
                         

(1)  
Adjusted to exclude items affecting the comparability of results. See Appendix A for a reconciliation of Non-GAAP measures.
(2)  
Debt adjusted to include the present value of operating lease commitments plus securitization financing.
(3)  
Earnings before interest, income taxes, depreciation and amoritization (EBITDA), and adjusted to exclude other income and the deemed interest on operating leases.
(4)  
See Appendix A for a reconciliation of Non-GAAP measures.
 
 

 
2

 
Statistical highlights



unaudited


   
2006
   
2007
   
2008
 
                         
Route miles (includes Canada and the U.S.)
    20,264       20,421       20,961  
Carloads (thousands)
    4,824       4,744       4,615  
Gross ton miles (millions)
    352,972       347,898       339,854  
Revenue ton miles (millions)
    185,610       184,148       177,951  
Employees (average for the year)
    22,092       22,389       22,695  
Employees (end of year)
    22,250       22,696       22,227  
Diesel fuel consumed (U.S. gallons in millions)
    401       392       380  
Average fuel price ($ per U.S. gallon) (1)
    2.13       2.40       3.39  
                         
(1)  2006 includes the impact of the Company’s fuel hedging program.
 
 
 
 
3

 
 
 
4

 
 
 
5

 
 
 
6

 
Canadian National Railway Company
Quarterly consolidated statement of income 2007 - 2008
 
 
unaudited
                                                           
$ in millions, unless otherwise indicated
                                                       
               
2007
                           
2008
             
      Q1       Q2       Q3       Q4    
Year
      Q1       Q2       Q3       Q4    
Year
 
                                                                                 
Revenues
  $ 1,906     $ 2,027     $ 2,023     $ 1,941     $ 7,897     $ 1,927     $ 2,098     $ 2,257     $ 2,200     $ 8,482  
                                                                                 
Operating expenses
                                                                               
Labor and fringe benefits
    485       430       446       340       1,701       461       392       424       397       1,674  
Purchased services and material
    276       263       247       259       1,045       285       283       268       301       1,137  
Fuel
    219       249       251       307       1,026       310       399       390       304       1,403  
Depreciation and amortization
    171       168       165       173       677       175       176       177       197       725  
Equipment rents
    66       62       59       60       247       64       60       59       79       262  
Casualty and other
    128       44       87       66       325       109       81       95       102       387  
                                                                                 
Total operating expenses
    1,345       1,216       1,255       1,205       5,021       1,404       1,391       1,413       1,380       5,588  
                                                                                 
Operating income
    561       811       768       736       2,876       523       707       844       820       2,894  
Interest expense
    (88 )     (85 )     (78 )     (85 )     (336 )     (86 )     (87 )     (92 )     (110 )     (375 )
Other income (loss)
    4       1       2       159       166       (6 )     9       4       19       26  
                                                                                 
                                                                                 
Income before income taxes
    477       727       692       810       2,706       431       629       756       729       2,545  
                                                                                 
Income tax (expense) recovery
    (153 )     (211 )     (207 )     23       (548 )     (120 )     (170 )     (204 )     (156 )     (650 )
                                                                                 
                                                                                 
Net income
  $ 324     $ 516     $ 485     $ 833     $ 2,158     $ 311     $ 459     $ 552     $ 573     $ 1,895  
                                                                                 
Earnings per share
                                                                               
Basic
    0.64       1.02       0.97       1.70       4.31       0.64       0.96       1.17       1.22       3.99  
Diluted
    0.63       1.01       0.96       1.68       4.25       0.64       0.95       1.16       1.21       3.95  
                                                                                 
Weighted-average number of shares
                                                                               
Basic
    510.2       505.2       499.7       489.8       501.2       482.8       476.4       471.7       468.1       474.7  
Diluted
    517.8       512.3       506.4       495.9       508.0       488.6       482.0       477.1       472.5       480.0  
 
 
7

 
Canadian National Railway Company
Quarterly consolidated balance sheet 2007 - 2008
 
 
 
unaudited

In millions

         
2007
                     
2008
             
      Q1       Q2       Q3       Q4       Q1       Q2       Q3       Q4  
                                                                 
Assets
                                                               
                                                                 
Current assets:
                                                               
Cash and cash equivalents
  $ 106     $ 241     $ 214     $ 310     $ 334     $ 161     $ 288     $ 413  
Accounts receivable
    508       425       641       370       621       843       657       913  
Material and supplies
    208       204       206       162       212       217       213       200  
Deferred income taxes
    83       73       69       68       67       67       69       98  
Other
    184       159       316       138       111       88       131       132  
      1,089       1,102       1,446       1,048       1,345       1,376       1,358       1,756  
                                                                 
Properties
    20,988       20,401       19,883       20,413       20,754       20,864       21,472       23,203  
Intangible and other assets
    1,646       1,664       1,576       1,999       2,065       2,113       2,134       1,761  
Total assets
  $ 23,723     $ 23,167     $ 22,905     $ 23,460     $ 24,164     $ 24,353     $ 24,964    
$
26,720
 
                                                                 
Liabilities and shareholders equity
                                                               
                                                                 
Current liabilities:
                                                               
Accounts payable and other
  $ 1,510     $ 1,489     $ 1,261     $ 1,336     $ 1,333     $ 1,289     $ 1,329     $ 1,386  
Current portion of long-term debt
    244       366       293       254       269       85       449       506  
      1,754       1,855       1,554       1,590       1,602       1,374       1,778       1,892  
                                                                 
Deferred income taxes
    5,025       4,885       4,940       4,908       5,021       5,100       5,246       5,511  
Other liabilities and deferred credits
    1,532       1,443       1,410       1,422       1,404       1,381       1,378       1,353  
Long-term debt
    5,602       5,193       5,342       5,363       6,064       6,389       6,264       7,405  
                                                                 
Shareholders’ equity:
                                                               
Common shares
    4,426       4,417       4,359       4,283       4,241       4,208       4,171       4,179  
Accumulated other comprehensive income (loss)
    (50 )     (180 )     (257 )     (31 )     9       (1 )     54       (155 )
Retained earnings
    5,434       5,554       5,557       5,925       5,823       5,902       6,073       6,535  
      9,810       9,791       9,659       10,177       10,073       10,109       10,298       10,559  
Total liabilities and shareholders’ equity
  $ 23,723     $ 23,167     $ 22,905     $ 23,460     $ 24,164     $ 24,353     $ 24,964     $ 26,720  
 
 
8

 
Canadian National Railway Company
Quarterly consolidated statement of cash flows 2007 - 2008
 
 
 
unaudited

In millions
 
                
2007
                           
2008
             
      Q1       Q2       Q3       Q4    
Year
      Q1       Q2       Q3       Q4    
Year
 
                                                                             
Operating Activities
                                                                           
Net income
  $ 324     $ 516     $ 485     $ 833     $ 2,158     $ 311     $ 459     $ 552     $ 573     $ 1,895  
Adjustments to reconcile net income to net cash provided from operating activities:
                                                                               
Depreciation and amortization
    172       169       165       172       678       175       176       177       197       725  
Deferred income taxes
    7       43       75       (207 )     (82 )     25       89       73       43       230  
Gain on sale of Central Station Complex
    -       -       -       (92 )     (92 )     -       -       -       -       -  
Gain on sale of investment in English Welsh and Scottish Railway
    -       -       -       (61 )     (61 )     -       -       -       -       -  
Other changes in:
                                                                               
Accounts receivable
    176       38       (252 )     267       229       (235 )     (233 )     209       (173 )     (432 )
Material and supplies
    (19 )     (1 )     (6 )     44       18       (48 )     (6 )     6       25       (23 )
Accounts payable and other
    (428 )     2       (69 )     99       (396 )     (59 )     (39 )     (1 )     (28 )     (127 )
Other current assets
    8       21       46       (9 )     84       29       22       (16 )     2       37  
Other
    23       (22 )     2       (122 )     (119 )     (33 )     (59 )     (43 )     (139 )     (274 )
Cash provided from operating activities
    263       766       446       942       2,417       165       409       957       500       2,031  
                                                                                 
Investing Activities
                                                                               
Properties additions
    (203 )     (344 )     (350 )     (490 )     (1,387 )     (177 )     (352 )     (415 )     (480 )     (1,424 )
Acquisitions, net of cash acquired
    -       -       -       (25 )     (25 )     -       -       -       (50 )     (50 )
Sale of Central Station Complex
    -       -       -       351       351       -       -       -       -       -  
Sale of investment in English Welsh and Scottish Railway
    -       -       -       114       114       -       -       -       -       -  
Other, net
    10       2       14       26       52       11       9       22       32       74  
Cash used by investing activities
    (193 )     (342 )     (336 )     (24 )     (895 )     (166 )     (343 )     (393 )     (498 )     (1,400 )
                                                                                 
Financing Activities
                                                                               
Issuance of long-term debt
    434       1,050       1,841       846       4,171       1,055       1,597       778       1,003       4,433  
Reduction of long-term debt
    (145 )     (904 )     (1,420 )     (1,120 )     (3,589 )     (580 )     (1,418 )     (798 )     (793 )     (3,589 )
Issuance of common shares due to exercise of stock  options and related excess tax benefits realized
    18       41       14       4       77       18       16       14       6       54  
Repurchase of common shares
    (343 )     (344 )     (452 )     (445 )     (1,584 )     (367 )     (323 )     (327 )     (4 )     (1,021 )
Dividends paid
    (107 )     (105 )     (104 )     (102 )     (418 )     (111 )     (109 )     (108 )     (108 )     (436 )
Cash provided from (used by) financing activities
    (143 )     (262 )     (121 )     (817 )     (1,343 )     15       (237 )     (441 )     104       (559 )
Effect of foreign exchange fluctuations on U.S. dollar-denominated cash and cash equivalents
    -       (27 )     (16 )     (5 )     (48 )     10       (2 )     4       19       31  
                                                                                 
Net increase (decrease) in cash and cash equivalents
    (73 )     135       (27 )     96       (131 )     24       (173 )     127       125       103  
Cash and cash equivalents, beginning of period
    179       106       241       214       179       310       334       161       288       310  
Cash and cash equivalents, end of period
  $ 106     $ 241     $ 214     $ 310     $ 310     $ 334     $ 161     $ 288     $ 413     $ 413  
                                                                                 
Supplemental cash flow information
                                                                               
Net cash receipts from customers and other
  $ 2,074     $ 2,086     $ 1,770     $ 2,209     $ 8,139     $ 1,748     $ 1,886     $ 2,391     $ 1,987     $ 8,012  
Net cash payments for:
                                                                               
Employee services, suppliers and other expenses
    (1,237 )     (1,017 )     (1,090 )     (979 )     (4,323 )     (1,339 )     (1,215 )     (1,195 )     (1,171 )     (4,920 )
Interest
    (114 )     (73 )     (86 )     (67 )     (340 )     (100 )     (90 )     (82 )     (124 )     (396 )
Workforce reductions
    (9 )     (7 )     (8 )     (7 )     (31 )     (6 )     (6 )     (5 )     (5 )     (22 )
Personal injury and other claims
    (20 )     (26 )     (12 )     (28 )     (86 )     (26 )     (18 )     (18 )     (29 )     (91 )
Pensions
    (1 )     (22 )     (27 )     (25 )     (75 )     (22 )     (31 )     (24 )     (50 )     (127 )
Income taxes
    (430 )     (175 )     (101 )     (161 )     (867 )     (90 )     (117 )     (110 )     (108 )     (425 )
Cash provided from operating activities
  $ 263     $ 766     $ 446     $ 942     $ 2,417     $ 165     $ 409     $ 957     $ 500     $ 2,031  
 
 
9

 
Canadian National Railway Company
Quarterly financial aand statistical data 2007 - 2008
 
 
 
unaudited

 
               
2007
                           
2008
             
      Q1       Q2       Q3       Q4    
Year
      Q1       Q2       Q3       Q4    
Year
 
Revenues (millions of dollars)
                                                                           
                                                                                 
Petroleum and chemicals
    303       300       317       306       1,226       319       322       346       359       1,346  
Metals and minerals
    198       225       208       195       826       205       239       269       237       950  
Forest products
    410       414       392       336       1,552       330       357       383       366       1,436  
Coal
    89       99       99       98       385       99       107       140       132       478  
Grain and fertilizers
    309       322       330       350       1,311       340       334       327       381       1,382  
Intermodal
    313       346       361       362       1,382       351       393       446       390       1,580  
Automotive
    132       142       114       116       504       116       124       117       112       469  
Total rail freight revenues
    1,754       1,848       1,821       1,763       7,186       1,760       1,876       2,028       1,977       7,641  
Other revenues
    152       179       202       178       711       167       222       229       223       841  
Total revenues
    1,906       2,027       2,023       1,941       7,897       1,927       2,098       2,257       2,200       8,482  
                                                                                 
Statistical operating data
                                                                               
                                                                                 
Gross ton miles (GTM) (millions)
    81,741       88,344       88,498       89,315       347,898       84,327       87,287       86,369       81,871       339,854  
Revenue ton miles (RTM) (millions)
    44,093       46,423       46,481       47,151       184,148       44,959       45,264       45,346       42,382       177,951  
Carloads (thousands)
    1,131       1,204       1,204       1,205       4,744       1,132       1,188       1,217       1,078       4,615  
Route miles (includes Canada and the U.S.)
    20,263       20,219       20,219       20,421       20,421       20,421       20,421       20,421       20,961       20,961  
Employees (end of period)
    22,139       22,757       22,834       22,696       22,696       22,703       23,147       22,569       22,227       22,227  
Employees (average for the period)
    21,478       22,494       22,789       22,796       22,389       22,636       22,953       22,730       22,461       22,695  
                                                                                 
Productivity
                                                                               
                                                                                 
Operating ratio
    70.6       60.0       62.0       62.1       63.6       72.9       66.3       62.6       62.7       65.9  
Rail freight revenue per RTM (cents)
    3.98       3.98       3.92       3.74       3.90       3.91       4.14       4.47       4.66       4.29  
Rail freight revenue per carload ($)
    1,551       1,535       1,512       1,463       1,515       1,555       1,579       1,666       1,834       1,656  
Operating expenses per GTM (cents)
    1.65       1.38       1.42       1.35       1.44       1.66       1.59       1.64       1.69       1.64  
Labor and fringe benefits expense per GTM (cents)
    0.59       0.49       0.50       0.38       0.49       0.55       0.45       0.49       0.48       0.49  
GTMs per average number of employees (thousands)
    3,806       3,927       3,883       3,918       15,539       3,725       3,803       3,800       3,645       14,975  
Diesel fuel consumed (U.S. gallons in millions)
    96       98       96       102       392       99       96       92       93       380  
Average fuel price ($/U.S. gallon)
    2.18       2.30       2.39       2.70       2.40       3.02       3.82       3.84       2.88       3.39  
GTMs per U.S. gallon of fuel consumed
    851       901       922       876       887       852       909       939       880       894  
                                                                                 
Safety indicators
                                                                               
                                                                                 
Injury frequency rate per 200,000 person hours (1)
    1.6       1.6       2.2       2.1       1.9       2.1       1.2       2.1       1.7       1.8  
Accident rate per million train miles (1)
    2.7       1.7       3.0       3.6       2.7       2.7       2.7       2.2       2.8       2.6  
 
(1)  Based on Federal Railroad Administration (FRA) reporting criteria.
 
Certain statistical data and related productivity measures are based on estimated data available at such time and are subject to change as more complete information becomes available.
 
 
10

 
Appendix A

Canadian National Railway Company
Reconciliation of non-gaap measures



unaudited

$ in millions, except per share data, or unless otherwise indicated

Adjusted performance measures
                                           
         
2006
               
2007
               
2008
       
   
Reported
   
Adjustments(1)
   
Adjusted
   
Reported
   
Adjustments(2)
   
Adjusted
   
Reported
   
Adjustments(3)
   
Adjusted
 
                                                                         
Revenues
  $ 7,929     $     $ 7,929     $ 7,897     $     $ 7,897     $ 8,482     $     $ 8,482  
Operating expenses
    4,899             4,899       5,021             5,021       5,588             5,588  
                                                                         
Operating income
    3,030             3,030       2,876             2,876       2,894             2,894  
                                                                         
Interest expense
    (312 )           (312 )     (336 )           (336 )     (375 )           (375 )
Other income
    11             11       166       (153 )     13       26             26  
                                                                         
Income before
    2,729             2,729       2,706       (153 )     2,553       2,545             2,545  
income taxes
                                                                       
Income tax expense
    (642 )     (277 )     (919 )     (548 )     (280 )     (828 )     (650 )     (117 )     (767 )
                                                                         
Net income
  $ 2,087     $ (277 )   $ 1,810     $ 2,158     $ (433 )   $ 1,725     $ 1,895     $ (117 )   $ 1,778  
                                                                         
Operating ratio
    61.8%               61.8%       63.6%               63.6%       65.9%               65.9%  
                                                                         
Diluted earnings
  $ 3.91     $ (0.51 )   $ 3.40     $ 4.25     $ (0.85 )   $ 3.40     $ 3.95     $ (0.24 )   $ 3.71  
 
(1)  
Adjusted to exclude a deferred income tax recovery of $277 million ($0.51 per diluted share) that resulted primarily from the enactment of lower corporate income tax rates in Canada and the resolution of matters pertaining to prior years’ income taxes.
 
(2)  
Adjusted to exclude a deferred income tax recovery of $328 million ($0.64 per diluted share) that resulted mainly from the enactment of corporate income tax rate changes in Canada, as well as the gains on sale of the Central Station Complex of $92 million, or $64 million after-tax ($0.13 per diluted share) and the Company’s investment in English Welsh and Scottish Railway of $61 million, or $41 million after-tax ($0.08 per diluted share).
 
(3)  
Adjusted to exclude a deferred income tax recovery of $117 million ($0.24 per diluted share), of which $83 million was due to the resolution of various income tax matters and adjustments related to tax filings of prior years, $23 million resulted from the enactment of corporate income tax rate changes in Canada and $11 million was due to net capital losses arising from the reorganization of a subsidiary.
 
 
11

 
Appendix A

Canadian National Railway Company
Reconciliation of non-gaap measures 2006 - 2008

 
unaudited

$ in millions, unless otherwise indicated
 
 
Free cash flow
                   
 
Year ended December 31,
 
2006
   
2007
   
2008
 
                     
Cash provided from operating activities
    $ 2,951     $ 2,417     $ 2,031  
Cash used by investing activities
      (1,349 )     (895 )     (1,400 )
Cash provided before financing activities
      1,602       1,522       631  
                           
Adjustments:
                         
Change in accounts receivable securitization
      82       (228 )     568  
Dividends paid
      (340 )     (418 )     (436 )
Effect of foreign exchange fluctuations on U.S. dollar-denominated cash and cash equivalents
    (1 )     (48 )     31  
Free cash flow
    $ 1,343    
$
828
    $ 794  
                           
Adjusted debt-to-total capitalization ratio
                         
 
December 31,
 
2006
   
2007
   
2008
 
                           
Debt-to-total capitalization ratio (a)
      36.3%       35.6%       42.8%  
Add: Present value of operating lease commitments plus securitization financing (b)
    4.1%       4.8%       2.4%  
Adjusted debt-to-total capitalization ratio
      40.4%       40.4%       45.2%  
                           
Adjusted debt-to-adjusted EBITDA
                         
 
Year ended December 31,
 
2006
   
2007
   
2008
 
                           
Debt
    $ 5,604     $ 5,617     $ 7,911  
Add: Present value of operating lease commitments plus securitization financing (b)
    1,044       1,287       787  
Adjusted debt
   
$
6,648
    $ 6,904     $ 8,698  
                           
EBITDA
      3,680       3,553       3,619  
Add: Deemed interest on operating leases
      38       41       39  
Adjusted EBITDA
    $ 3,718     $ 3,594     $ 3,658  
                           
Adjusted debt-to-adjusted EBITDA
   
1.8 times
   
1.9 times
   
2.4 times
 
 
(a)  
Debt-to-total capitalization is calculated as total long-term debt plus current portion of long-term debt divided by the sum of total debt plus total shareholders’ equity.
(b)  
The operating lease commitments have been discounted using the Company’s implicit interest rate for each of the periods presented.
 
 
12

 
 
 

 
SIGNATURES
 
          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
    Canadian National Railway Company  
           
Date: May 29, 2009  By: /s/ Cristina Circelli  
      Name:
Cristina Circelli
 
      Title:
Deputy Corporate Secretary and
General Counsel