Upload
finance16
View
621
Download
3
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Annual 2002Investors’ Report
Page(s)
Earnings Press Release 1 - 4
Consolidated Statement of Income Information 5 - 6
Consolidated Balance Sheet Information 7
Consolidated Cash Flow Information 8 - 9
Operating Statistics 10 - 11
Revenue Statistics by Commodity 12 - 13
Capital Expenditures and Track Maintenance 14 -15
Outstanding Debt 16
INDEX
BURLINGTON NORTHERN SANTA FE CORPORATIONINVESTORS' REPORT - UNAUDITED
Annual 2002
1
NEWSContact: Marsha Morgan FOR IMMEDIATE RELEASE
(817) 352-6452
Burlington Northern Santa Fe ReportsFourth Quarter/Year-End 2002 Results
• Fourth quarter 2002 earnings of $0.54 per share compared with $0.46 per shareincluding an adjustment for workforce reduction related costs in 2001, or $0.57 pershare excluding these costs.
• Freight revenues of $2.27 billion for the fourth quarter 2002 were flat comparedwith 2001 fourth quarter.
• Operating income was $436 million compared with $401 million a year ago, or$467 million adjusted.
FORT WORTH, Texas, January 21, 2003 - Burlington Northern Santa Fe Corporation(BNSF) (NYSE: BNI) today reported fourth quarter 2002 earnings of $0.54 per share comparedwith $0.46 per share including an adjustment for workforce reduction related costs in 2001, or$0.57 per share excluding these costs.
“In spite of the economic challenges BNSF faced throughout 2002, we posted our fifthconsecutive year-over-year quarterly record for on-time performance for our customers,” saidMatthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “We achievedfourth quarter and annual record revenues in our international intermodal, truckload andperishables sectors within Consumer Products as well as several annual revenue records in theIndustrial Products sector. In addition, for the fourth consecutive year BNSF generatedsignificant positive free cash flow.”
Freight revenues of $2.27 billion for the fourth quarter 2002 were flat compared with2001 fourth quarter. Consumer Products revenues increased $27 million, or 3 percent, to $846million, primarily reflecting increased volumes in the international, truckload, and perishablessectors. Industrial Products revenues were essentially flat at $491 million as general softness inthe building, construction and petroleum products sectors was partially offset by new chemical
2
traffic. Coal revenues decreased $6 million, or 1 percent, to $540 million, reflecting decreasedshipments compared to the same 2001 period. Agricultural Products revenues declined $22million, or 5 percent, to $393 million, primarily as a result of reduced soybean exports anddomestic corn demand.
Operating expenses of $1.87 billion were $35 million lower than the same 2001 period,or $31 million higher excluding the 2001 fourth quarter workforce reduction related costsincluded in materials and other expense. Compensation and benefits expense driven by higherwage and benefit rates, and higher purchased services expense were partially offset by lowerequipment rents.
Operating income was $436 million for the 2002 fourth quarter compared with operatingincome in the same 2001 period of $401 million, or $467 million adjusted. BNSF’s operatingratio was 80.8 percent for the 2002 fourth quarter compared with 82.4 percent in 2001, or 79.4percent adjusted.
Rose said, “Going forward, we will continue to focus on customer service, revenuequality, operating efficiencies and technological innovation, building on the excellent foundationwe have laid over the past two years. As the U.S. economic recovery picks up steam in 2003,BNSF is well-positioned for strong earnings growth.”
Year-End 2002 Results
BNSF’s earnings per share for the year ended December 31, 2002, was $2.00 on a dilutedbasis compared with prior period earnings of $1.87 per diluted share.
Freight revenues for the year were $8.87 billion compared with 2001 revenues of $9.09billion. Operating expenses of $7.32 billion decreased by $135 million. Operating income fellto $1.66 billion from $1.75 billion as compared with the prior period. 2001 earnings includeunusual items comprised of an automotive contract settlement gain, losses on non-railinvestments, work force reduction related costs and an expense associated with the earlyextinguishment of debt.
3
Common Stock Repurchases
During the 2002 fourth quarter, BNSF repurchased approximately 3 million shares of itscommon stock at an average price of $25.76 per share. This brings total repurchases underBNSF’s 120-million share-repurchase program to approximately 116 million shares as ofDecember 31, 2002, at an average price of $25.97 per share since the program was announced inJuly 1997.
Through its subsidiary, The Burlington Northern and Santa Fe Railway Company, BNSFoperates one of the largest railroad networks in North America, with 33,000 route miles covering28 states and two Canadian provinces. BNSF is an industry leader in Web-enabling a variety ofcustomer transactions at www.bnsf.com. The railway is among the world’s top transporters ofintermodal traffic, moves more grain than any other American railroad, transports the mineralcomponents of many of the products we depend on daily, and hauls enough coal to generateabout 10 percent of the electricity produced in the United States.
Consolidated financial statements follow.
Statements made in this release concerning projections or expectations of financial oroperational performance, or concerning other future events or objectives or results, are"forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements involve a number of risks and uncertainties and actual results may differmaterially from that projected or implied in those statements. Important factors that could causesuch differences include, but are not limited to, economic and industry conditions: materialadverse changes in economic or industry conditions, both within the United States and globally,customer demand, effects of adverse economic conditions affecting shippers, adverse economicconditions in the industries and geographic areas that produce and consume freight, competitionand consolidation within the transportation industry, the extent to which BNSF is successful ingaining new long-term relationships with customers or retaining existing ones, changes in fuelprices, changes in the securities and capital markets, and changes in labor costs and labordifficulties, including stoppages affecting either BNSF’s operations or our customers’ abilities todeliver goods to BNSF for shipment; legal and regulatory factors: developments and changes inlaws and regulations and the ultimate outcome of shipper and rate claims subject toadjudication, environmental investigations or proceedings and other types of claims andlitigation; and operating factors: technical difficulties, changes in operating conditions andcosts, competition, and commodity concentrations, the Company’s ability to achieve its
4
operational and financial initiatives and to contain costs, as well as natural events such assevere weather, floods and earthquakes or other disruptions of the Company’s operatingsystems, structures, or equipment.
The Company cautions against placing undue reliance on forward-looking statements,which reflect its current beliefs and are based on information currently available to it as of thedate a forward-looking statement is made. The Company undertakes no obligation to reviseforward-looking statements to reflect future events, changes in circumstances, or changes inbeliefs. In the event the Company does update any forward-looking statement, no inferenceshould be made that the Company will make additional updates with respect to that statement,related matters, or any other forward-looking statement. Any corrections or revisions mayappear in the Company’s public filings with the Securities and Exchange Commission, which areaccessible at www.sec.gov or on the Company’s website at www.bnsf.com, and which you areadvised to consult.
Burlington Northern Santa Fe CorporationConsolidated Income Information*(In millions, except per share data)
Three MonthsEnded December 31,
2002 2001 2002 2001 2000
Operating revenuesFreight revenues $ 2,270 $ 2,272 $ 8,873 $ 9,090 $ 9,112 Other revenues 31 29 106 118 95
Total operating revenues 2,301 2,301 8,979 9,208 9,207
Operating expenses Compensation and benefits 739 713 2,879 2,850 2,729 Purchased services 286 274 1,139 1,088 1,026 Depreciation and amortization 235 229 931 909 895 Equipment rents 164 177 698 736 740 Fuel 227 230 833 973 932 Materials and other 214 277 843 902 772
Total operating expenses 1,865 1,900 7,323 7,458 7,094
Operating income 436 401 1,656 1,750 2,113 Interest expense 107 111 428 463 453 Other expense - net 5 7 12 114 75
Income before income taxes 324 283 1,216 1,173 1,585 Income tax expense 122 106 456 442 605
Net income $ 202 $ 177 $ 760 $ 731 $ 980
Diluted earnings per share $ 0.54 $ 0.46 $ 2.00 $ 1.87 $ 2.36
Diluted average shares outstanding 376.1 386.5 380.8 390.7 415.2
Operating ratio 80.8% 82.4% 81.3% 80.7% 76.8%
*
Certain prior period amounts have been reclassified to conform with the current period presentation.
Fourth quarter 2001 earnings include work force reduction related costs. Adjusting for the unusual item, fourth quarter 2001 earnings is $0.57 per diluted share and the operating ratio is 79.4 percent. Full-year 2001 earnings include unusual items comprised of an automotive contract settlement, non-rail investment losses, workforce reduction related costs and an expense associated with the early extinguishment of debt. Adjusting for the unusual items, full-year 2001 earnings is $2.08 per diluted share and the operating ratio is 80.3 percent.
Year Ended December 31,
Full-year 2000 earnings include unusual items of $0.09 per diluted share comprised of reduction and redeployment of employees and costs for the terminated BNSF/CN merger proposal. Excluding the unusual items, full-year earnings per share is $2.45 and the operating ratio is 76.3 percent.
5
Burlington Northern Santa Fe CorporationConsolidated Income Information*(In millions, except per share data)
20021st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Operating revenuesFreight revenues $ 2,138 $ 2,183 $ 2,282 $ 2,270 $ 8,873 Other revenues 25 24 26 31 106
Total operating revenues 2,163 2,207 2,308 2,301 8,979
Operating expenses Compensation and benefits 714 696 730 739 2,879 Purchased services 275 281 297 286 1,139 Depreciation and amortization 230 231 235 235 931 Equipment rents 175 177 182 164 698 Fuel 184 207 215 227 833 Materials and other 205 194 230 214 843
Total operating expenses 1,783 1,786 1,889 1,865 7,323
Operating income 380 421 419 436 1,656 Interest expense 109 105 107 107 428 Other (income) expense - net (4) 6 5 5 12
Income before income taxes 275 310 307 324 1,216 Income tax expense 103 116 115 122 456
Net income $ 172 $ 194 $ 192 $ 202 $ 760
Diluted earnings per share $ 0.45 $ 0.51 $ 0.51 $ 0.54 $ 2.00
Diluted average shares outstanding 385.5 382.3 379.5 376.1 380.8
Operating ratio 82.2% 80.7% 81.6% 80.8% 81.3%
* Certain prior period amounts have been reclassified to conform with the current period presentation.
6
Burlington Northern Santa Fe CorporationConsolidated Balance Sheet Information(In millions, except per share amounts)
2002 2001AssetsCurrent assets Cash and cash equivalents $ 28 $ 26 Accounts receivable, net 141 172 Materials and supplies 226 191 Current portion of deferred income taxes 314 306 Other current assets 82 28 Total current assets 791 723
Property and equipment, net 24,022 23,110
Other assets 954 888
Total assets $ 25,767 $ 24,721
Liabilities and stockholders' equityCurrent liabilities Accounts payable and other current liabilities $ 1,918 $ 1,873 Long-term debt due within one year 173 288 Total current liabilities 2,091 2,161
Long-term debt and commercial paper 6,641 6,363 Deferred income taxes 6,975 6,731 Casualty and environmental liabilities 445 423 Minimum pension liability 368 12 Employee merger and separation costs 170 216 Other liabilities 1,145 966 Total liabilities 17,835 16,872
Stockholders' equity Common stock and additional paid-in capital 5,669 5,589 Retained earnings 5,625 5,048 Treasury stock (3,114) (2,745) Unearned compensation (39) (34) Accumulated other comprehensive income (209) (9) Total stockholders' equity 7,932 7,849
Total liabilities and stockholders' equity $ 25,767 $ 24,721
Book value per share $ 21.11 $ 20.34
Common shares outstanding 375.8 385.8
Net debt to total capitalization * 46.1% 45.8%
* Net debt is calculated as total debt less cash.
December 31,
7
Burlington Northern Santa Fe CorporationConsolidated Cash Flow Information(In millions)
Three MonthsEnded December 31,2002 2001 2002 2001 2000
Operating activities
Net income $ 202 $ 177 $ 760 $ 731 $ 980 Adjustments to reconcile net income to net cashprovided by operating activities:
Depreciation and amortization 235 229 931 909 895 Deferred income taxes 146 96 432 302 353 Employee merger and separation costs paid (7) (17) (55) (55) (58) Other - net 23 7 (9) 91 33 Changes in working capital 28 139 47 219 114
Net cash provided by operating activities 627 631 2,106 2,197 2,317
Investing activities and dividends paid
Capital expenditures (342) (398) (1,358) (1,459) (1,399) Other - net (32) (101) (159) (105) (281) Dividends paid (45) (47) (183) (190) (206)
Free cash flow after dividends paid 208 85 406 443 431
Financing activities excluding dividends paid
Purchase of BNSF common stock (72) (54) (353) (317) (1,496) Proceeds from stock options exercised - 7 40 113 13 Other - net 2 (1) (1) (18) 7
Net debt paid (incurred) $ 138 $ 37 $ 92 $ 221 $ (1,045)
Year Ended December 31,
8
Burlington Northern Santa Fe CorporationConsolidated Cash Flow Information*(In millions)
20021st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter YearOperating activities
Net income $ 172 $ 194 $ 192 $ 202 $ 760 Adjustments to reconcile net income to net cashprovided by operating activities:
Depreciation and amortization 230 231 235 235 931 Deferred income taxes 68 122 96 146 432 Employee merger and separation costs paid (20) (11) (17) (7) (55) Other - net (3) (30) 1 23 (9) Changes in working capital (91) 20 90 28 47
Net cash provided by operating activities 356 526 597 627 2,106
Investing activities and dividends paid
Capital expenditures (260) (381) (375) (342) (1,358) Other - net (108) 10 (29) (32) (159) Dividends paid (46) (46) (46) (45) (183)
Free cash flow after dividends paid (58) 109 147 208 406
Financing activities excluding dividends paid
Purchase of BNSF common stock (80) (119) (82) (72) (353) Proceeds from stock options exercised 27 8 5 - 40 Other - net - (2) (1) 2 (1)
Net debt paid (incurred) $ (111) $ (4) $ 69 $ 138 $ 92
* Certain prior period amounts have been reclassified to conform with the current period presentation.
9
Burlington Northern Santa Fe CorporationOperating Statistics*
Three MonthsEnded December 31,2002 2001 2002 2001 2000
Cars/units (thousands) 2,081 2,065 8,186 8,155 8,167
Average revenue per car/unit (a) $ 1,091 $ 1,100 $ 1,084 $ 1,111 $ 1,116
Revenue ton miles (millions) 125,442 127,972 490,234 501,829 491,959
Gross ton miles (millions) 223,573 227,183 873,335 896,566 875,249
RTM/GTM 0.56 0.56 0.56 0.56 0.56
Freight revenue/thousand RTM (a) $ 18.10 $ 17.75 $ 18.10 $ 18.05 $ 18.52
Operating expense/thousand RTM (b) $ 14.87 $ 14.85 $ 14.94 $ 14.86 $ 14.42
Freight revenue/thousand GTM (a) $ 10.15 $ 10.00 $ 10.16 $ 10.10 $ 10.41
Operating expense/thousand GTM (b) $ 8.34 $ 8.36 $ 8.39 $ 8.32 $ 8.11
Compensation and benefits/thousand GTM $ 3.30 $ 3.14 $ 3.30 $ 3.18 $ 3.12
Average employees 36,882 39,253 37,373 39,217 39,860
Period end employees 36,303 38,539 36,303 38,539 39,566
Thousand RTM/average employee 3,401 3,260 13,117 12,796 12,342
Thousand GTM/average employee 6,062 5,788 23,368 22,862 21,958
Gallons of fuel used (millions) 292 296 1,149 1,177 1,173
Average price per gallon of fuel (cents) (c) 77.7 77.7 72.5 82.7 79.5
GTM/gallon of fuel 766 768 760 762 746
Freight train miles (millions) 37 37 145 146 145
GTM/freight train hours (thousands) 143 143 144 142 147
Route miles operated 32,513 33,063 32,513 33,063 33,386
(a) Excludes effects of a third quarter 2001 automotive contract settlement of $32 million.(b) Excluding unusual items, fourth quarter 2001 and full-year 2001 and 2000 (i) operating expense/thousand RTM is $14.33,
$14.73 and $14.34, respectively and (ii) operating expense/thousand GTM is $8.07, $8.24 and $8.06, respectively.(c) Includes handling, taxes and hedge effect.
* Certain prior period amounts have been reclassified to conform with the current period presentation.
Year Ended December 31,
10
Burlington Northern Santa Fe CorporationOperating Statistics*
20021st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Cars/units (thousands) 1,927 2,036 2,142 2,081 8,186
Average revenue per car/unit $ 1,109 $ 1,072 $ 1,065 $ 1,091 $ 1,084
Revenue ton miles (millions) 120,122 120,123 124,547 125,442 490,234
Gross ton miles (millions) 212,461 214,334 222,967 223,573 873,335
RTM/GTM 0.57 0.56 0.56 0.56 0.56
Freight revenue/thousand RTM $ 17.80 $ 18.17 $ 18.32 $ 18.10 $ 18.10
Operating expense/thousand RTM $ 14.84 $ 14.87 $ 15.17 $ 14.87 $ 14.94
Freight revenue/thousand GTM $ 10.06 $ 10.19 $ 10.23 $ 10.15 $ 10.16
Operating expense/thousand GTM $ 8.39 $ 8.33 $ 8.47 $ 8.34 $ 8.39
Compensation and benefits/thousand GTM $ 3.36 $ 3.25 $ 3.27 $ 3.30 $ 3.30
Average employees 37,026 37,838 37,745 36,882 37,373
Period end employees 37,470 37,577 37,243 36,303 36,303
Thousand RTM/average employee 3,244 3,175 3,300 3,401 13,117
Thousand GTM/average employee 5,738 5,665 5,907 6,062 23,368
Gallons of fuel used (millions) 283 283 291 292 1,149
Average price per gallon of fuel (cents) (a) 65.0 73.1 73.9 77.7 72.5
GTM/gallon of fuel 751 757 766 766 760
Freight train miles (millions) 35 36 37 37 145
GTM/freight train hours (thousands) 148 146 139 143 144
Route miles operated 32,908 32,900 32,232 32,513 32,513
(a) Includes handling, taxes and hedge effect.
* Certain prior period amounts have been reclassified to conform with the current period presentation.
11
Burlington Northern Santa Fe CorporationRevenue Statistics by Commodity*
Revenues (in millions) 2002 2001 2002 2001 2000
Intermodal 698$ 666$ 4.8 % 2,758$ 2,638$ 2,652$ 4.5 %Automotive 79 85 (7.1) 322 410 493 (21.5)Other Consumer Products 69 68 1.5 273 276 260 (1.1)
Total Consumer Products 846 819 3.3 3,353 3,324 3,405 0.9
Industrial Products 491 492 (0.2) 2,041 2,080 2,114 (1.9)Coal 540 546 (1.1) 2,071 2,123 2,131 (2.4)Agricultural Products 393 415 (5.3) 1,408 1,531 1,462 (8.0)Total freight revenue 2,270 2,272 (0.1) 8,873 9,058 9,112 (2.0)Other revenue 31 29 6.9 106 118 95 (10.2) Total revenues 2,301$ 2,301$ 0.0 % 8,979$ 9,176$ 9,207$ (2.1) %
Cars/units (in thousands)
Intermodal 898 863 4.1 % 3,563 3,391 3,440 5.1 %Automotive 39 38 2.6 154 192 249 (19.8)Other Consumer Products 40 41 (2.4) 163 169 161 (3.6)
Total Consumer Products 977 942 3.7 3,880 3,752 3,850 3.4
Industrial Products 340 342 (0.6) 1,415 1,442 1,501 (1.9)Coal 546 559 (2.3) 2,097 2,133 2,023 (1.7)Agricultural Products 218 222 (1.8) 794 828 793 (4.1)Total cars/units 2,081 2,065 0.8 % 8,186 8,155 8,167 0.4 %
Average revenue per car/unit
Intermodal 777$ 772$ 0.6 % 774$ 778$ 771$ (0.5) %Automotive 2,026 2,237 (9.4) 2,091 2,135 1,980 (2.1)Other Consumer Products 1,725 1,659 4.0 1,675 1,633 1,615 2.6
Total Consumer Products 866 869 (0.3) 864 886 884 (2.5)
Industrial Products 1,444 1,439 0.3 1,442 1,442 1,408 0.0Coal 989 977 1.2 988 995 1,053 (0.7)Agricultural Products 1,803 1,869 (3.5) 1,773 1,849 1,844 (4.1)Average revenue per car/unit 1,091$ 1,100$ (0.8) % 1,084$ 1,111$ 1,116$ (2.4) %
Revenue ton miles (in millions)
Intermodal 22,915 22,024 4.0 % 90,122 88,353 92,658 2.0 %Automotive 1,195 1,261 (5.2) 4,837 5,911 7,597 (18.2)Other Consumer Products 2,974 3,034 (2.0) 12,098 12,070 11,812 0.2
Total Consumer Products 27,084 26,319 2.9 107,057 106,334 112,067 0.7
Industrial Products 21,906 22,336 (1.9) 92,489 97,241 99,178 (4.9)Coal 54,211 56,276 (3.7) 209,353 213,158 204,303 (1.8)Agricultural Products 22,241 23,041 (3.5) 81,335 85,096 76,411 (4.4)Total revenue ton miles 125,442 127,972 (2.0) % 490,234 501,829 491,959 (2.3) %
Freight revenue per thousand ton miles
Intermodal 30.46$ 30.24$ 0.7 % 30.60$ 29.86$ 28.62$ 2.5 %Automotive 66.11 67.41 (1.9) 66.57 69.36 64.89 (4.0) Other Consumer Products 23.20 22.41 3.5 22.57 22.87 22.01 (1.3)
Total Consumer Products 31.24 31.12 0.4 31.32 31.26 30.38 0.2
Industrial Products 22.41 22.03 1.7 22.07$ 21.39 21.32 3.2 Coal 9.96 9.70 2.7 9.89 9.96 10.43 (0.7) Agricultural Products 17.67 18.01 (1.9) 17.31 17.99 19.13 (3.8) Freight revenue per thousand ton miles 18.10$ 17.75$ 2.0 % 18.10$ 18.05$ 18.52$ 0.3 %
* Excludes effects of a third quarter 2001 automotive contract settlement of $32 million.
ChangePercentChange
Three MonthsEnded December 31, Percent Year Ended December 31,
01-02
12
Burlington Northern Santa Fe CorporationRevenue Statistics by Commodity*
Revenues (in millions)
Intermodal 633$ 693$ 734$ 698$ 2,758$ Automotive 81 86 76 79 322 Other Consumer Products 64 69 71 69 273
Total Consumer Products 778 848 881 846 3,353
Industrial Products 491 535 524 491 2,041 Coal 508 488 535 540 2,071 Agricultural Products 361 312 342 393 1,408 Total freight revenue 2,138 2,183 2,282 2,270 8,873 Other revenue 25 24 26 31 106 Total revenues 2,163$ 2,207$ 2,308$ 2,301$ 8,979$
Cars/units (in thousands)
Intermodal 804 905 956 898 3,563 Automotive 37 40 38 39 154 Other Consumer Products 39 41 43 40 163
Total Consumer Products 880 986 1,037 977 3,880
Industrial Products 332 373 370 340 1,415 Coal 511 500 540 546 2,097 Agricultural Products 204 177 195 218 794 Total cars/units 1,927 2,036 2,142 2,081 8,186
Average revenue per car/unit
Intermodal 787$ 766$ 768$ 777$ 774$ Automotive 2,189 2,150 2,000 2,026 2,091 Other Consumer Products 1,641 1,683 1,651 1,725 1,675
Total Consumer Products 884 860 850 866 864
Industrial Products 1,479 1,434 1,416 1,444 1,442 Coal 994 976 991 989 988 Agricultural Products 1,770 1,763 1,754 1,803 1,773 Average revenue per car/unit 1,109$ 1,072$ 1,065$ 1,091$ 1,084$
Revenue ton miles (in millions)
Intermodal 20,847 23,246 23,114 22,915 90,122 Automotive 1,232 1,267 1,143 1,195 4,837 Other Consumer Products 2,978 3,030 3,116 2,974 12,098
Total Consumer Products 25,057 27,543 27,373 27,084 107,057
Industrial Products 22,188 24,312 24,083 21,906 92,489 Coal 50,573 50,294 54,275 54,211 209,353 Agricultural Products 22,304 17,974 18,816 22,241 81,335 Total revenue ton miles 120,122 120,123 124,547 125,442 490,234
Freight revenue per thousand ton miles
Intermodal 30.36$ 29.81$ 31.76$ 30.46$ 30.60$ Automotive 65.75 67.88 66.49 66.11 66.57 Other Consumer Products 21.49 22.77 22.79 23.20 22.57
Total Consumer Products 31.05 30.79 32.18 31.24 31.32
Industrial Products 22.13 22.01 21.76 22.41 22.07 Coal 10.04 9.70 9.86 9.96 9.89 Agricultural Products 16.19 17.36 18.18 17.67 17.31 Freight revenue per thousand ton miles 17.80$ 18.17$ 18.32$ 18.10$ 18.10$
* Excludes effects of a third quarter 2001 automotive contract settlement of $32 million.
Quarter1st 2nd
Quarter
2002FullYear
3rdQuarter
4thQuarter
13
Burlington Northern Santa Fe CorporationCapital Expenditures and Track Maintenance*
Three MonthsEnded December 31,2002 2001 2002 2001 2000
Capital expenditures (in millions)Maintenance of way
Rail $ 25 $ 50 $ 193 $ 233 $ 210 Ties 24 50 222 254 206 Surfacing 39 41 161 146 134 Other 88 98 325 335 285
Total maintenance of way 176 239 901 968 835 Mechanical 70 62 168 183 221 Information services 17 19 79 69 66 Other 44 42 95 101 144
Total maintenance of business 307 362 1,243 1,321 1,266
Terminal and line expansion 30 36 103 126 99 Other 5 - 12 12 34
Total capital expenditures $ 342 $ 398 $ 1,358 $ 1,459 $ 1,399
Operating lease commitments $ - $ - $ 147 $ 149 $ 363
Total capital commitments $ 342 $ 398 $ 1,505 $ 1,608 $ 1,762
Track maintenanceTrack miles of rail laid
Maintenance of business 69 211 648 837 680 Expansion projects - 3 4 18 21
Total 69 214 652 855 701
Cross ties inserted (thousands)Maintenance of business 256 654 2,228 2,646 2,450 Expansion projects 3 8 20 58 77
Total 259 662 2,248 2,704 2,527
Track resurfaced (miles) 2,499 1,252 12,499 11,011 11,228
* Certain prior period amounts have been reclassified to conform with the current period presentation.
Year Ended December 31,
14
Burlington Northern Santa Fe CorporationCapital Expenditures and Track Maintenance*
20021st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Capital expenditures (in millions)Maintenance of way
Rail $ 43 $ 63 $ 62 $ 25 $ 193 Ties 55 81 62 24 222 Surfacing 23 46 53 39 161 Other 61 83 93 88 325
Total maintenance of way 182 273 270 176 901 Mechanical 28 34 36 70 168 Information services 18 23 21 17 79 Other 6 21 24 44 95
Total maintenance of business 234 351 351 307 1,243
Terminal and line expansion 22 27 24 30 103 Other 4 3 - 5 12
Total capital expenditures $ 260 $ 381 $ 375 $ 342 $ 1,358
Operating lease commitments $ 6 $ 100 $ 41 $ - $ 147
Total capital commitments $ 266 $ 481 $ 416 $ 342 $ 1,505
Track maintenanceTrack miles of rail laid
Maintenance of business 90 229 260 69 648 Expansion projects - 2 2 - 4
Total 90 231 262 69 652
Cross ties inserted (thousands)Maintenance of business 478 971 523 256 2,228 Expansion projects 1 6 10 3 20
Total 479 977 533 259 2,248
Track resurfaced (miles) 1,548 4,179 4,273 2,499 12,499
* Certain prior period amounts have been reclassified to conform with the current period presentation.
15
Burlington Northern Santa Fe CorporationOutstanding Debt
December 31,2002 2001
Notes and debentures, weighted average rate of 6.4 percent, due 2003 to 2097* $ 4,719 $ 4,500
Equipment obligations, weighted average rate of 7.2 percent, due 2003 to 2016 611 677
Capitalized lease obligations, weighted average rate of 6.5 percent, due 2003 to 2023 646 672
Mortgage bonds, weighted average rate of 7.9 percent, due 2003 to 2047 422 425
Financing obligations, weighted average rate of 7.0 percent, due 2012 to 2022 138 -
Commercial paper, 2.0 percent, variable 320 416
Unamortized discount and other, net (42) (39)
Total outstanding debt 6,814 6,651
Less: current portion of long-term debt (173) (288)
Long-term debt $ 6,641 $ 6,363
* Notes and debentures include fair value adjustments for hedges of $77 million and $2 million in 2002 and 2001, respectively.
16