I I I I I I I I I I I I I I I I I KANSAS CITY/? I The Kansas City Southern Railway Company SOUTHERN I 427 West 12th Street, Kansas City, MO 64105 NOTICE
1. This report is required for every class I railroad operating within the United States. Three copies of this Annual Report should be completed. Two of the copies must be filed with the Surface Transportation Board Office of Economics, Environmental Analysis and Administration, 395 E St. N.W.. Washington, DC 20423, by March 31 of the year following that for which the report is made. One copy should be retained by the carrier.
2. Every inquiry must be definitely answered. Where the word "none" truly and completely states the fact, it should be given as the answer. If any inquiry is inapplicable, the words "not applicable" should be used.
3. Wherever the space provided in the schedules is insufficient to permit a full and complete statement of the requested information, inserts should be prepared and appropriately identified by the number of the schedule.
4. All entries should be made in permanent black ink or typed. Those of a contrary character must be indicated in parentheses. Items of an unusual character must be indicated by appropriate symbols and explained in footnotes.
5. Money items, except averages, throughout the Annual Report should be shown in thousands of dollars adjusted to accord with footings Totals for amounts reported in subsidiary accounts included in supporting schedules must be in agreement with related primary accounts. For purposes of rounding, amounts of $500 but less than $1,000 should be raised to the nearest thousand dollars and amounts of less than $500 should be lowered.
6. Except where the context clearly indicates some other meaning, the following terms when used in this report have the following meanings: a) Board means Surface Transportation Board. b) Respondent means the person or corporation on whose behalf the report is made c) Year means the year ended December 31 for which the report is being made. d) Close of the year means the close of business on December 31 for the year for which the report is being made. If the report is made for a shorter period than one year, it means the close of the period covered by the report. e) Beginning of the year means the beginning of business on January 1 of the year for which the report is being made. If the report is made for a shorter period than one year, it means the beginning of that period. f) Preceding year means the year ended December 31 of the year preceding the year for which the report is made. g) The Uniform System of Accounts for Railroad Companies means the system of accounts in Part 1201 of Title 49, Code of Federal Regulation, as amended.
7. The ICC Termination Act of 1995 abolished the Interstate Commerce Commission and replaced it with the Surface Transportation Board. Any references to the Interstate Commerce Commission or Commission contained in this report refer to the Surface Transportation Board.
8. Any references to the Bureau of Accounts or the Office of Economics contained in this report refer to the Office of Economics, Environmental Analysis and Administration of the Surface Transportation Board.
For Index, See Back of Form ACAA-R1
ANNUAL REPORT
OF
THE KANSAS CITY SOUTHERN RAILWAY COMPANY
fmg > KANSAS CUV? SOUTHERN -
TO THE
SURFACE TRANSPORTATION BOARD
FOR THE
YEAR ENDED DECEMBER 31, 2007
Name, official title, telephone number and office address of officer In charge of correspondence with the Commission rsQafdlng this report:
(Name) Michael K. Borrows (Title) Senior Vice President and Chief Accounting Officer
(Telephone number) (816) 983-1371 (Office address) 427 West 12* Street Kansas City. Missouri 64105 I Road Initials: KCSR Year 2007 I I I I I I THIS PAGE
LEFT BLANK I
INTENTIONALLY I I I I I I I I
Railroad Annual Report R-1 I I I Road Iritis ACSR Year 20C7
TABLE OF CONTENTS
SCHEDULE PAGE
Schedules emitted by Responaeit A 1 Usnl.ty cf Respondent B 2 Vclirg 3cw«'s and Elections C 3 Corrparab'.a Statement el Fmanc al PosJ'on 200 5 Resjlls of Operations 210 16 Retained Earnings - Onapprcpriatea 220 19 Caoi'al Slock 230 20 Statement of Changes in Fi.-anciai Pos.ticn 240 21 Working Capital Irrormatio-. 245 23 In/silments and Advances • Affiliated Companies 310 26 In/eslmerls !m Common Slocks of AITIialed Com=an.es 31 OA 30 Road Procerty ant! Equipment and Improvements to Leased Property ana Equipment 330 32 Dearec'aticn Base aid Ra'ss - Road and £qv,iprrent Owned and Used and Leased Irom Ciiers 332 34 Accui%.la:ed Depreciation - Rsai and E'ju pment Owned and Used 335 35 Accrued Liaoility - Leased Procerty 339 36 Oeorec ation Base and Rales - imoroverrenls to Rcas and cqui3ir8.nl Leased '.'Oil Others 340 37 Aicum Ja:e
SPECIAL NOTICE
Docket No. 33559 Railroad Class.fication Index, served January 20.1983, modified the reporting requirements for class II. Ill and all Switching and terminal companies These carriers will notify the Board only if the calculation results in a different revenue level than its current classification.
The dark border on the schedules represents data that are captured for processing by the Surface Transportation Board
II is estimated mat an average of EDO burden hours per response are required to complete this collection of information This estimate includes lime for reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the collection of information. Comments concerning the accuracy of this burden estimate or suggestions for reducing this burden should be directed to the Office of the Secretary. Surface Transportation Board and the Office of Information and Regulatory Affairs. Office of Management and Budget.
Railroad Annual Report R-1 30MI t> -iate KCSR Year 2:5 A. SCHEDULES OMITTED BY RESPONDENT
1 Tl~e lesponcsn:, ai :ls cp-sn may crri* pages from ins repsr: provided Ae;a s nothing la repcrt cr Ir.a schedules areTO !appaca^Ie . 2 Shi,« celcw »» pages sxcjudiid aad r.iicaie ira schedule n^mtec and utte n lha s^aca provided beiow 3 if nc scheauies were cnnRed i.-.d.catfl "NONE"
Pace Schecils Na Tn'e
10-15 2CO Comparative Statement cf Financial Position - Explanatory Nates ana Blank Pages
23-2S 310 Investments and Advances Affiliated Companies - Continued Pages
'033 Annua. R8EC1R-' Road Initials KCSR Year: 2007
B. IDENTITY OF RESPONDENT
Answers ID Ih9 quesi.ons asked shcbld te made in full, without reference ;o data relumed on the corresponding rase ol previous reports. In case any cnafic.es cf :-.e nature re'erred 10 unis- Inquiry 4 en this page nave ta'
1. Exact name of common carrier making this report The Kansas City Southern Railway Company See note on oaae 4 2 Date ot incorporation March 19.1900 3 Under laws of what Government. State or Territory organized? If more than one, name all. If in bankruptcy, give court of jurisdiction and dates of beginning of receivership or trusteeship and of appointment of receivers or trustees
State of Missouri
Article II Chapter XII Revised Statutes cf Missouri 1899
4 If the respondent was reorganized during the year, involved in a consolidation or merger, or conducted its business under a different name, give full
STOCKHOLDERS' REPORTS
5 The respondent is required to send lo the Bureau ai Accounts, immediately upon preparation, two copies of its latest annual report to stockholders Check appropriate box:
| X ITWO copies are attached lo this report.
I ITWO copies will be submitted (date)
I I No annual report to stockholders is prepared.
Railroad Annual Report R-1 P:-a: --.i.s KCSR
C. VOTING POWERS AND ELECTIONS 1 3 late tr.e par va!.je of each share cf stock Ccfp'noti. S No Psr cer share: first preferred S 350.CCO sar share: second pis lerred, S Nona per share dEcer.tLre stock. 5 More per sha.-e 2 State whether or nat es:h. share o- stock has ne ugh- to ere vo'.e if r.ol. g.ve ful! partis j!ars in a fcc'rote Ves 3 Are ,-cting rights ?r jpcn.ooal to rold.ngs' Yes if not state in a footnote the re'ation between holdings and correspond;,".g voting ngnts. 4 Are vciing rights attacned » any secjrr.es otter than stcc'<' No If so. name in a foot-note each secur.ly. ether Shan stock C -Ahich voting ngn-s are attached ;as cf the cicse o! the year; and slate .r. delaii tre relation bef.veen holdings and corresponding voting rignis. slating wneine' vot rg r.g^is are aclu3< or ccnt.nge^i. and il cwlir.gent, sr.c.vmg the contingency 5 Has any class c<- iss-e ct secunt as ai> special pnv, eges in -he etei'ici of directors. :rus:ees or managers or in '.he deiernna!;on of corpc-a:e action ay any merrcd'' _No. 1! so, deserts fully m a fcc'.ncie each such class or issue and give a succinct staterrent showing cleart> the character aid extent cl such privileges 6 Give the date cf the latest casing si lie slccV Seek arior to trs actual fi!r.g of lh-5 report, and state the purpose of such closinq Stock t)03k last closed Apr,! 3. 1931 ? State the :cra! vol.r.g ps/.'er sf 3,1 security raiders o; tie respondent at the dale of such closing, if within one year cf the date of such Filing, if no' stale as of :ne close of lha year 9.S40.C57 jotes, as of Degerroer 31. 2-3C7 . (Oasal 8 State r,e total rumce.- ol siccA.-otae.'s oi recora, as cf Ir.a date st-.cwn in answer to inquiry No 7 1 stockholder 9 Gi a the nar.es al me :r\irty secunt., hcstiers of tre respondent *hc. at the date c: tne latest ciosing of the stock book or compilation or list of sio^I-.clcers o! !-e rispcider,; ;'f -,vlriin 1 year pr cr '.c \f-.a act ja; King 3! l.l'.s reccrt), had the hignssi vet TQ pc.-.ers in Ihe re^cndent. shOAi'iig fo: each his address the ni.n:aer ol votes to '.vh-.ch ne was entitled, v/hicn respect to secunt.es he:ti by him. such securities being Classified as carrrnan s>'cc«. secord preferred stcck. firs: preferred sleek and other securities, stating in a footnote the names of such other sec.iriiies (if any] If any si.cn no cier nelc in trust, give \>n a footnote} toe particulars cf the trust In tr.e case of ,'ctmg trust agresmenls, g ve as supplemental information me names anci adcresscs cf the ih ny la-gest ho.ders of the voting last certificates and lha amount o* their individual holdings. If the stockfcos* 1aa s not c'ossd cr ins Us; of SiOcMiofcters camp.'ierf within sxh year, thmi ii/ch thirty security holders asol Ids close of the year.
M.rrber of vo:es NUMBER OF VOTES CLASSIPED WITH loivn-rt RESPECT TO SECURITIES OH Line se:unly r-olcer WHICH BASED line NO Hurt cl se:.rc/ reiser Ada-ess c! sec.rity r.Mer •«as enuiied Stcu No PREFERRED CCTTC'' Secs-Ji FKSI W ft) C) C) te) il 1 Kansas C.ty SaUneT. 427 West ir Street Karsss Cilv. .Vissouri 64105 9.540.057 9.840.CCO 67 1 2 2 3 3 4 4 5 5 6 6 7 7 3 & 9 9 10 10 11 11 12 12 13 13 14 14 15 15 IS 16 17 17 18 18 IS 19 2G 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 23 23 29 29 Road Initials: KCSR Year 2007
C. VOTING POWERS AND ELECTIONS • Concluded
10 Slate (he total number of votes cast at the latest general meeting for the election of directors of the respondent, 9.840.057 votes cast.
11 Give the date of such meeting May 3, 2C07
12. Give the place of such meeting Kansas City. Missouri 64105
NOTES AND REMARKS
List of consolidated companies, subsidiaries and affiliates1 The Kansas City Southern Railway Company Gateway Eastern Railway Rice-Garden Corporation Mid-Sou;h Microwave, Inc. Southern Capital Corporation, LLC Mexrail. Inc. Tne Texas Mexican Railway Company Meridian Speedway. LLC
Effective January 1, 2C07, The Kansas City Southern Railway Company R-1 includes Meridian Speedway. LLC.
Railroad Annual Report R-1
200. COMPARATIVE STATEMENT OF FINANCIAL POSITION -ASSETS (D:'lsrs Ji Tncusar.is)
Lne C-3SS AlK'.rl Tie Eaiaice a! Ba a-c: il Line N-3 Cl-.IK* close cfysa.- D«g.r-n.ng;l ,Ea- Na (a) Currant Assets . 7C1 Cas>- 2C.S38 3C.79J i 2 7C2 Terrpc-aryCasn IrnsslTe-ls iS 135 5.434 2 3 'C3 Sax v Dec:&'.s . 6 3 A:c3ii".s RK« .-as'e 4 7Ci •LaanardNcres . . 4 5 7C5 • l.-iert.re 3rd Diner Ba ar:es 2012 2S36 5 6 ?:s - Cus:-:refi 69.652 89.355 6 7 7S7 • 0!I-M 24875 23129 7 3 7:9 7C8 • *zc.'\.t- AccCj.";s Rc-ce .ac'es 13652 55.862 S 9 7C83 - Pecavat 35 !.-jm A'f i'3'.es Co.-'Bar.es 542.994 S5S.442 3 -.0 7C95 • Lesj. A Icmnce Icr Urcci «:i3 e A::curi: (58791 CC227) 10 •. ; 7'3 7'.l 7'4 A'o-Xfl; F-nss P-epajir-nrs Oe'irred lr£o~e Ta< Get is 55.869 UCB1 \: 12 .'12 Mater alsa-dS-ap.as 5B.537 47.773 12 13 713 OTIS' Cir'sni Assets - Resi-idea Cas.- H.547 32.593 13 •,4 TOTAL CURRENT ASSETS 9 23 TOTAL OTHES ASSETS 523 SeS 545 083 23 Road and Equipment 24 73!, 732 Read iSchcdu-b 330} L m 30 Cci. h & 6 2 215.433 1,9-6.985 24 75 731 732 Equ sme't iSchedt,!: 33J) Lire 39 Coi. h £ b 359.451 395 107 25 25 731.. 732 Unalccaieaftem 252.1 B7 2BS.4C5 25 ! A=rumJa;e3 Oepr«cai en ara AT-artuLcr (SchitiJes 335 3'2 and 351} (320 953 2' 733 735 73S (821.716 27 23 N'ei Read ana EqiiJj~wl 2.K53SS 1 879,515 28 £9 TOTAL ASSETS 3.345.676 3.474,422 29 NOTES AND REMARKS Note: Lines 24c-27c tta-ie been resisted lo include solr.va'&'sat.'vare amortization and sotware conslijciion in progress previously excluded from Scr.eci.le 333 {lir.es 38 and 42 respectively) ana schedule 335 (line 33) .n error The 2007 beginning balances within these schedules have been res!a!s "r.'.ai Fteis I Road In-jals: KCSR Year 2007 I 200. COMPARATIVE STATEMENT OF FINANCIAL POSITION - LIABILITIES AND STOCKHOLDERS' EQUITY (Dollars in Thousands) I Lre Cross Account Title Balance at Balance at Line No Crteck clcse cf year beginning of yea M3 (a) (0) (c) Current Liabilities I 30 751 Leans and Moles Payacle 30 31 752 Accounts Payable Interline an Olner Balances 18.478 24.343 31 32 753 Auaited Accounts and Wages 29S63 31852 32 33 754 Oiier Accounts Pavable 1BS83 21,399 33 I 34 755. 7=3 Interest and CUcends Payable 7.353 8.007 34 35 737 Payaa'es 10 Affiliated Companies . . 35 36 759 Accrued Accounts Payable 178.803 178.482 38 37 760. 7S1 7615.752 Taxes Accrued 16.522 20.312 37 I 33 763 Other Current Lraoil ties 1.743 . 38 39 J 764 Equipment Obligations and Olher Lcng-Terrr. Deb: Due wtlhin One Year 650.012 15.655 39 *Q TOTAL CURRENT LIABILITIES S21.562 3CO.C61 40 I Non-Current Liabllllles 4) 755. 757 Funded Decs Unmatured 246.679 780.396 41 42 765 Equipment Obl:ga::ons 738 972 42 43 7S6.5 Casualized Lease Obligations 6.984 554 43 44 768 Debt in Defai.1: . . 44 I 45 769 Accojnts Payable- Aflidaled Ccmganies 224.799 657.031 45 43 770.1.7702 Unarncriizea Cebl Premum . . 48 47 7B1 ir.teres! in Default . . 47 48 783 Deferred Revenues-Transfers frcm Gcvemmenial Autncnbes . . 48 I 49 786 Accumulated Deferred Income Tax Credits 430,255 440.649 49 50 771. 772. 774. 775. Other Long-Term L'ac'lilies and Deferred Credits 782. 784 105.663 99.335 50 I 51 TOTAL NON-CURRENT LIABILITIES 1.015.118 1.979,.! S3 SI Stockholders' Equity 52 51. 792 Total Capital Stock: (Scr.edjle 230) Lines 53. 54 57.504 57.504 52 S3 Corrrr.cn Seek 36.504 36.504 53 I 54 Preferred Slock 21.000 21.000 54 55 Discount on Cae:tal Stock . . 55 55 94. 795 Additional Cap :al (Schedule 230) 784.551 645.057 55 Retained Earnings: I 57 97 Appreciated . . 57 53 33 Unaosrapnated (ScheoU* 220) 570.728 495.099 S3 59 98.1 Net Unrealized Loss on Nci-Cu>rent Marketable Equity Secunbes . . 59 60 985 Less Treasury Stock (3.787) (3.787) 60 I 61 Net Sicckrclders' Equ.iy 1.403.996 1.194.873 61 62 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 3.345.676 3,474.422 62 I NOTES AND REMARKS I I Railroad Annual Report R-1 I I I Read ln,Sils KCSR tea- 20:7 200. COMPARATIVE STATEMENT OF FINANCIAL POSITION - EXPLANATORY NOTES (Cc,l3's in Thousands) Tne rotes listed be o.i are prcv dad la cisrlosa si.pp'emer.lary ,nfo.-n-a; en on waters unicn have an important eSect on the financial condition a'" the carrer Tne carr.e: snail g.-.e iRe part.culars cai'ed tor he;e.n and where there is noting la report, insert Ira word "none", and in addition Irtereto sha I er.:er i". separate notes win suitable parrcu!a?s other maaers involving material anxiunts of the character commonly disclosed in fnsnc.ai stajsreivs t,nfl«r genera Iy aicepled ac:suni.ng and report r.g ;r nctples. except as shewn ir otner scned:/es Tnis ir.rtuees statements eiplalmr.; (i; serv.;e 'r.ie-,-jp(i;n nst.far.ce polices and 'ndicanrj the amounl of indemnity to *hich responder.t w.ll be entitled for .v3ik stoppage losses and ir-e raxi.-rum a.T«u.ii cf atfd sus:3ined b,- cine* ra-(C3is. ;2) p3-..:t. ars cancerrirx) 3t. gat ars lor storit purchase opiions granted to officers and employees, and (3) wrat entries na' 1 Amcurt '.est Taled ,1 ne;es>4'y) o! net iitcon e or retained I.-.COTE v.c.icn has to te provided for cap ta expend.'ures. ard 'or sinking and ether S-rsds pursuant ta f rc.iscrs at recig3ruzai.cn plans, rror.gages. deeds at trust or otner contracts S None 2 cst:niateJ arrc jnt or rUu.-a eainii gs -vrvch can be realised before paying Fcccral incorre taxes because cf unused ard availaala net cperat r.g loss carr/cver on January 1 of year fc'lowing that (or .'.hich the report .s made S Nona 3 (a) Huoia.n the p'B:eojie in accounting far psr.s :n funds an i reocrdii-.g in the acccurts the Ci/nem aixl past service pension costs, indicating whether or nol cons stent with tne prior year ^.'ol Aec gaeie (b) State amount if any representing tr.e excess of tns astuanafiy ccTipu'.ed value of vested benefits over the total of tr.a pension fund (c) Is any pan cf pens an plan iLfjed? Spec.ry Yes No (i) If finding is by insurance give name of insuring company If funding a by triist agreement. 1st trustee;*) Date cf trust agreement or latest amendment If respondent is affiliated .n any v/ay with tne toistee(s). explan affiialon tc) List aiTmaled companies -Ahicn arc mended in Die pension plan funding agreement and describe basis for allocating charges unde: the agreeme-.: fe) (>l Is any pat cf :.te pension plan fj.Td invested 'n s:oc.< or sther secji»ies of the respondent cr any of its affiliates1 Spec.fy Yes No I! yes. g:v: nurrber cl the shares for each class of slack or clner security (») Are vofng rights attached to any sec-jr.lies neld by the pension plan? Specify Yes Mo If yes. who 4 Stale whether a seg'egared pcl.lical fund has been established as provided by the Federal Election Campaign Act of 1971 (18 US C. 610). Yes_X .No 5 (a) The arr,Cur.l of e.-p cyers corlnoulon to arrp'oyee stack ownership loans for the current year was S None (b) The amount of investxe-4 ta« credit used to red jce current r.corre tax expense resetting from cont/icutions to qualiRed employee slock Oivnersh p plans fcr the current year was $ Nora 6 In reference tc Occ\et Nc 37-465 scecif/ me total amount of Business entertainment expenditures charged to tne non-operating expense account S None Continued OP 'cllg.ving page Sajrcad Ar-'ua1 Repsrt S-i I Road Iraiials: KCSR Year. 2007 I 200. COMPARATIVE STATEMENT OF FINANCIAL POSITION - EXPLANATORY NOTES - Continued 7 Give poircjlars with resseci !o contingent assets and liabilities at the dose of the year, n accortiar.ee v,,!t\ instruction 5-6 In !he Uniform System of Accounts for Railrcaa Companies, that are net reflected m the amounts of the respondent I Disclose the nature and amount of contingency that is material Examples of contingent facilities are items wh.ch may become cb!!gat.c.-.s as a resi.lt of pending or threatened litigation, assessments or possiale assessments of add.! cnal taxes and agreements or obligations to repurchase secunties or property Additional pages may oe added if irore space is neeeed. (Exp>am and/or reference to (he fc! owing pages.) I Litigation: Tre Company is a party lo vancus legal proceedings arc admirJstraiive act'cns. all of which are of an oidmary. rcutine nature and incidental to its operations. railroad operations KCSR aggressively defends these rra'te'S end has established dao'lity reserves wncn management believes are adequate lo cover expected costs Allnough it is not possible to predict Ine outcome of any legal proceeding, in tne op nion of Tanagemenl, other than those proceed'ngs I descnued in detail below suc"i proceedings ana actions snould not. individually, or in the aggregate, have a material adverse effect on trse Comgany's financial condition. Hc.veter. a materal adverse ojtco.T.3 in one or more of these proceed'njs cou.d have a matenal adverse impact on the operations of a particular period. Environmental Matters: I The Compary's operations are subject to extensive federal, state aid local environmental laws and regulations .Tne ma,or U S environmental laws to which the Company is Subject include, among others, the Federal Comprehensive Environmental Response. Ccrrpensalion and UaoSily Ac! ('CERCLA.' also known as tne Superfjnd >aw). the Toxic Substances Cent-el Act. the Federal Water PoSulicn Control Act. and the Hazardous Matena's Transportation Act. CERCLA can impose jar.! ana several liabiMies fcr cleanup and investigation costs, without regard to fault or legality cf iha original conduct, on current and I predecessor owners and operators of a Site, as v.ell as those who generate, cr arrange for the disposal of. hazardous substances. The Company dees not believe that compliance with the requirements imposed by the environmental leg'slat'on mil impair its competitive capabi! ly or result in any material additional cap.:al expenditures, opera! ng or maintenance costs. The Corrcany is. however, subject to environmental remediation costs as descnbed below. KCS conducts studies, as we'l as sue surveys, lo determine the extent of environmental remedial on necessary lo dean up a ste. These studies incorporate tne analysis of internal ana external environmental engineering staff and consultation with legal counsel. From these stud.es and surveys, a range of I and change periodically as additional cr oetter information becomes available as to the extent of site remediation requ red, if any. KCS accrues for the cost of remediation where the 33'igation is probable and such costs can be reasonasly estimated. Cost esimates can be influenced By advanced technologies related to the detection, appropriate remedial course of action and anticipated cast Certain I changes cojld occur rial would materially affect management's estimates and assumptions related to costs for environmental remediation If KCS becomes subject to more stringent environmental remediation costs at known sites, discovers additional contamination, discovers previously unknown s.les. or becomes Accordingly, management believes that estimates relates to Ire accrual cf environmental remediaton liabPities are critical lo KCS' results of operations. I The risk of incurr,ng envronmental liability is inherent in the railroad industry. As part of serving the petroleum and chemicals industry, the Company materials Additionally, the Company is a partner in the Responsible Caren program and. as a result, has initialed additional environmental, health and safety programs. The Company performs ongoing reviews and evaluations ol the various envirormenial programs and issues wltnln the Company's operations, and. as necessary, lakes actions Intended to Ism.! the Company's exposure to potential liabl'uy. I Tna Coirpany owns property thai is. or has been, used for mduslr-al purposes. Use of these properi.es may subject the Company to potentially material liabilities relatng to the investigation and deanuo cf contaminants, claims alleging personal injury, or property damage as me result of exposures to. or release of. nazartfous substances Although the Company is responsible fcr investigating and the remediation of cantarrmation a! several locations, based on cjrrently avaitab'e information, the Company does not expect any re'ated liabilities, individually or collectively, lo have a material impact on its financial I positioi or casn flows Should the Company become subj'ect lo more slringenl cleanup requirements al these s be reasonably estimated. Costs of ongoing compliance aclivi:.es to current operations are expensed as incurred. The Company's recorded Pabffitles for these issues represerl its best estimates (01 an uncisccunted basis) of remedialian and restoration costs that may be required to comply with present laws and I regu'alicns. AJthojgh these costs csrnot ce p-ed cied win certainty, management believes thai the Ultimate outcome of identified matters will not have a matenal adverse effect on the Company's consolidated financial position or cash Cows. Casualty Claim Reserves: I Due lo the nature cl railroad oaeralions. claims related to personal injuries and th>rd party liabilities resulting from crossing collisions and derailments, as wen as claims related to personal property damage and Diner casualties is a substantial expense lo KCS Claims are estimated and recorded fcr known reported occurrences as well as fcr incurred bjl not reported {'IBNR') occurrences. Consistent with the general practice willta the railroad !ndus:ry. the estimated (•acilny for these casualty expenses is a:tuanally delerrrtned at an und'scounied basis. In esB-naLng the tub My fO' casualty claims. KCS bases the estimate on an updated study cf casualty reserves, whicn calculates an estimate using historical experience and estimates of claim costs as well as numerous assumptions I reganj'ng factors re'evanl to the derivation of an estimate of future cla'm casts. Persona' injury and other casually clams are subject I? a significant degree cl uncertainty, especially estimates re'a'ed to incurred but not reported persona! iriunes fcr which a party has ye! to assert a claim In deriving an estimate o' the provision for casualty claims, management must make assumptions related to substantially uncertain matters (injury seventy claimant age and legal jurisdiction). Changes in the assumptions used for actuarial studies could have a matenal I effect 01 lie estimate ol Ihe provision fcr casualty c'atms Tne most sensitive assumpsons for personal injury accruals are the expected average cost per tfaim and the prs.ected frequency rates for the nurroer cf claims that v,ill ultimately result in payment. Management believes that Ihe accounting estimate related lo Ihe Hab.iity for personal usuries and c»er casualty claims is critical lo KCS' resu'ts of operations. I Railroad Annual Report R-1 I I F33dlnil.as KCSR Yes- 2C:7 200. COMPARATIVE STATEMENT OF FINANCIAL POSITION • EXPLANATORY NOTES • Cccetjasd Casuj ty Claim Fie serves |conlmu Long Term Debt and Credit Facility Activity [Line 38] Oi May 3' 2u37 KCSR erveted «o ^cnsreTe-.i N; ! '.o Ice 2X5 Cresii Agreemen: wn:cK previews for a ne* S/5 0 "•> en lein> loan faa'iiy (tie •tt'~ Lean C Fac !/)vHnar,-a matuffl/ dale o' Ac'l 28 2CI3 T-.e X'9 Deaii AgretnieM. tanejer. ;rc«des te'an earigr lenT^a'..:*! aaa !,-a: s s: aajs c.- cr a "he ea- Jest f nal rrstjnly ca'e s' a-y o-litancicg 9 WW Ncles aro 7 1-7vt Ns«s w ass :n? 2C06 Cres.i Ajreame'l fce: ! H a-e -a-ea at leas: Da's By MsaV* ana BS» a; Si? .n eacn case, w tr> ai .MSI sfao.e oui'ccxs. or fr.-r to s,cn :a'e, Ire S l.'Z% Nales jno 7 < 2-j ,'lDiei nate :e;n lelrarcea r tj.l. sr in an:ur.t sutfoen1 13 >rc«Fe3s.:i/ repay si.cn 9 1;2',i Holes ire 7 I 2V, Mc'es hss »«> oapC3i? Nc'as 3rd 7 *•?% (ta!es is cjrr«n:ly Cclces- 1. 2CGS Bassd '^pcn i.ie a's-^rrsr.'.ore: wnnnascn prsvs:n fe •as ."3 crtsr.s cf SJP."a« rcioee- meiresutna r- a nul-niy ta'.i cf Ji.V X 2C5S 1C 'enra^ce 'tie 9 1-2% Ncies pr.o- a s..:i aa:e Du>-ng ;r-e ->^ ^jn$r cf 2G07, me Ccmpar.y re=ass f ea tfs ;6,'33I ens ; .nee' :n: 27:? Cr»i! Ajreer-^i f-cm i;r; :erm t!e:i 1C c^-enl deb: and as af 3ece.TG« 31 . 2307, If.e o:-ja^snj rec-a»,fiefi ftcrr long :ein csb: la CJrtsr: debt i3&;e Term Loan C Faci,!/ bears -iisresl at e.lfter LIBOR p.i-s ',SO oass penis cr an al:«:Ra:ibe iaie rate cu» 5: basis so.il* Precce^s 'rcm advan:» i.nte- !^« Term Loan C Fac lily -Acre used la rezu:e amounts cjsSanJi-g ..nee- i Antilmsl Lawsuif As at Oe:>-:e: 3!. 2037 23 p'-!s;-«t cass aucns .-,ave teen re3 asansl Tr.a Kansas City Sc.lnem Ha,.*3/ Company a WTO ly-emied 50M :-ary c' :r» Crn;any I'KCSR"), a^^g .'..in ;-,e olrer CTas; I U S ra CcaCs [on 2, :n jc-^e cases ^» Assscai-cn of Arrencan Ra 'roads), Li va-.:<.5 -ei&a i SM.C: ccurs a:flg.r, gIna i *e ra,!-;ads ccnsp f« to fi< -uel su-:.~3f;es nvca;.cno'US ant/rus: aim On N'avemSer 6, 2007 ire Jut ca< Pa,~e> s.i W.AC.SL-I:! 0:153- en (MPML l ctiered -ha! ihese :i<-ativ« : ass atf'ci case, be ccnsc icated lor prec ai ran:! ^g bel=re lh9 Ur.ce.- S»als3 ^.s.f::'. Ccjr, tc- u-e Oisinct cl C=li.tr,c,a Afire ihe nra-e-s ren-at wan; In a:k)].ar.. :he Maw Jersey Aiiarne/ General has iniiaied an AvesLga'.st of ra I hel lu'cria'ses ard fas saughl nhrrraticn legarcn; insse surcharses from KCSA and other ra,l,-oads. KCSR is roaperai.'g V..L-I >r,« New Je^ey A:;;r-.ey Geieral's lequef. far irlirmal'or ATI I? p.-ese'vng a'l of .is legal defenses KCSR oe leves ihat Ine piice (•x.ig a.iegaljr.s a;a asl il *!3ve ns Ter.'.. be. ms 4 has siren; ca'ensei ani inieras 13 vigorous,/ canlesi lrie»e lawsu's If.fo^h Inai ard appeal if reef !E3r/ Wr, c :ne r.-a a.::»r.e o( 'fes^ .Ta'lers carflDl se rred Kei n.i-. ceia.il/, D*e Campany ce'i«»es lial w Reinsurance Litigation: Irsurarce cs-pan-es Aho prev.^ac insurance to the CoRi;ary f.'-d a-t aali«i «-• federal c:un m Vermont ('.Reinsurance U.jaiiO.V) seeking a declarai.c.i !na! Ifey nase ~3 eb.gai.cn lo ndernrf/ lira Corrjany ccncemng a panicmr casua!^ c.aim. That daim, Kenp. st ai v Tne Kansas Cn/ Eaj\-en Ra'way Cc-parr/. et a. was fled in ihe Ci-tr-4 Ccu-1 frf Ja:«scr. Ccunly, Misscua fKemp Litigation*) am «erj to (nal n Septerrbe' 20CS The Company reacred 3setleTentivilninepa.iii.ts r ihe i Acquisitions of Locomotives: In AST- 2307, KCSR ard jsl 2CS7, KCSR and KCSM en'e'ed nlo defn uve pu'cnase agreements Wild Gene-al Electro Company ("Ge") to acq-jire an ag;te;aie of S3 iTca-taiives -v.^i (a) Changes In Valuation Accounts S Ma.~/«:ai:eEc..f.-, Se?.-->es NONE Dr. (CD Cr (^rj C;sr Market tc Sran-9 C-rra-l PonfdiO N' A ass! li N;n-Curr»R! Pcrfoho Itl A S (P'eAC.! Y-) Curt'l Por:!c3o N' A N/ A as cf .' i N/ A N/ A (a) AT . grcss ,n-ea as ;a.ns 3-0 'esses pe-j n'nj, ic maw-able equly sec^rkes were as fc'ows. Ga .is L;sses Cu'-ent $ 5 (:} A re1 .ni->ai S NOTE .' ' tcale! Bslaice sheet date sf rscorteo" year tnless specified as prevcus year R3i.-oad Arnaa1 Refit R-1 I 16 Road Initials: KCSR Year 2007 I 210. RESULTS OF OPERATIONS (Oo'iars in Thousands) 1 . Disclose the requested irifarriiaiicn lettt-. eresponded ! pcr!2ir!,ng is trie 4. All centra or.irira hcrcundcr should bs indicated in parentheses, results of operations tor (he year 5. Crosschecks I 2 Report total operating expanses from Schedule 4 10 ol tins report Any Schedule 210 Schedu*e210 dispanl.es in expense amounts shown in this schedule and expense amounts Line 1 5. column (b) - Line 62. column (b) reported in Schedule 410 must be ful'y explained on page 18 Line 47 plus 43 plus 49, column (b) * Line S3, co'umn (b) 3 List dividends From investments accounted (cr under the cost method on Line SO. column (b) = Line 64, column (b) the appropriate lir.e No. i&far Account No. 513 'Dividend Income." List Schedule 4 10 dividends accounted for by tne equity method on the appropriate dividend line Line 14, column (b) = Line 620, column (h) I No. 25 under the 'Income From Affiliated Companies" subsection of this Line 14. column (d) = Line 620. column (I) schedule Line 14, column (e) - Una 620, colinm (g) Freight- Passenger- I Amount for Amount for related related Line Cross Hem current year preceding yea revenue 4 revenue & Line No Check expenses expanses No. (a) (b) (e) (d) (e) ORDINARY ITEMS I OPERATING INCOME Railway Operating Income 1 (101) Freight 880,149 830.049 880.149 NONE 1 2 (102) Passenger . - 2 I 3 (103) Passenger-Related - - 3 4 (104) Switcning 20,779 18.638 20.779 4 5 (105) Waler Transfers . 5 6 (106) Demurrage 18.372 19.130 18.372 6 I 7 (1 10) Incidental 6.626 8.278 6.626 7 8 (121) Joint Facility -Credit . . - 8 9 (122) Joint Facility -Debit . - - 9 10 (501) Railway Operating Revenues (exclusive of Transfers I from Government Authorities - Lines 1-9) 925.926 876.095 925.926 to 11 (502) Railway Operating Revenues • Transfers from Government Authorities for Current Operations . 11 12 (503) Railway Operating Revenues • Amortization of Deferred . . Transfers from Government Authorities 12 I 13 TOTAL RAILWAY OPERATING REVENUES (Lines 10-12) 925.926 876,085 925,926 13 14 (531) Railway Operating Expenses 770.390 722.847 770.390 14 15 Net Revenue from Railway Operations 155.536 153.248 155,536 15 OTHER INCOME I 16 (503) Revenue from Property Used in Other I han Carrier Operations 17 11 16 17 (510) Miscellaneous Rent Income . 3.580 17 18 (512) Separately Operated Properties • Profit . . 18 19 (513) Dividend Income (Cost Method) 2 . 19 I 20 (514) Interest Income 2.600 2,297 20 21 (516) Income from Sinking and Other Funds . - 21 22 (517) Release of Premiums on Funded Debt . - 22 23 (518) Reimbursements Received under Contracts and Agreements . . 23 I 24 (519) Miscellaneous Income 5.504 11,167 24 Income from Affiliated Companies: 519 25 a Dividends (Equity Method) 25 25 b. Equity in Undistributed Earnings (Losses) 4.818 5.328 26 I 27 TOTAL OTHER INCOME (Lines 16-26) 12,941 22,383 27 28 TOTAL INCOME (Lines 15. 27) 168.477 175.631 28 MISCELLANEOUS DEDUCTIONS FROM INCOME 29 (534 ) Expenses of Property Used in Otter Than Carrier Operations 22 22 29 I 30 (544) Miscellaneous Taxes . . 30 31 (545) Separately Ooerated Properties • Loss . . 31 32 (549) Maintenance of Investment Organization . . 32 33 (550) Income Transferred under Contracts and Agreements . . 33 I 3s (551) Miscellaneous Income Charges 206 1.671 34 35 (553) Uncol>e:!ible Accounts (3,221) 2,240 35 36 TOTAL MISCELLANEOUS DEDUCTIONS (Lines 29-35) (2.993) 3.933 36 37 Income Available lor Fixed Charges (Lines 28, 36) 171,470 171.698 37 I Railroad Annual Report R-1 I I Road.n.«al5 KCSR Year 2007 17 210. RESULTS OF OPERATIONS - Cowljasd (Oc'lars m Thousands) Lf.e C-ass i-en-i Amount for Aniourl ft;' Line \9 Chock cwren year preceding year No 0! (b) :=) FIXED CHARGES {546) In'.eres: on Fenced Deal 38 (31 FuK) .nte-est Nairn Dsiau1; 62.907 6C17S 36 39 Railroad An-.usl Report R-1 18 Road Initials: KCSR Year 2007 NOTES AND REMARKS FOR SCHEDULES 210 AND 220 THIS PAGE INTENTIONALLY LEFT BLANK Railroad Annual Report R-1 Road ni'als KCSR Year 2COT 19 220. RETAINED EARNINGS (Dfli.ars i.n Tr.o-sartfs) 1 5-.0* nsiow me .!ems at Ftetai-ed =3.-..n3s A:cibn:s of the roironien: for tne year, dassif ed in accordance .-.sh tfe Ur.fcrm S»s:em of Accaw.ls for Sasitoad Cair-par.es 2 A: contra entnes r.erejrrjs: shock! ba sac AI in parertt'eses. 3 Show jraec "Rexarns" :re arr.ci.nt of assigned rederas inccmsta* consequences for Acccunss 60S and 515 -; Segregate :n ccr-ir- fc) n!i amounts appLcable to ;re equity n um.s'.riDuted earnings (losses) of affi.iatea csrr.panies basso on the sqt.1,1 memof! of accounting 5 l:r.e 3 flire 7 if 3ao l :3,ar:ei. co jr-n |c) srcu'd ajree « th lire 26. cc'um (bj. Scred-- s 2:!> The tstal of co.urnrts <|;) anj {c). line* Sard 7, sncu'd agrtev.iihl.ro 61 C3ltmn(b). SchaauieSIO 5 Inc'.-de "n column (t! orl/ arro^rts appl C3ble !c letamec earn.rigs exclusive c! any a.T<;.r.ts .nciLdoJ in ccli.tr.n (c) Lire C.'CS3 ilcm Retained Eqjtly In jrdis- Lne No Cneck earnings- tr:biited earnings No. unappropnafed (losses) of afTt- iaied companies !aj W (c) 1 33'ao;es at Eeo .iri.nj c! Year 443.893 48.206 1 1 2 i&CI 5! 3i.3r Per.oa AJi^s'.fcnts to B«g..nn.'ng Re:a nsd Eam;rgs _ 2 CREDITS 3 (302) Cradit Ba ar:e Translsrrsd (roni Income 70.811 4,818 3 4 (303) App'ocnauor.s Released . . 4 5 i'506) Other Crcd is to Re'a red Eat!' i-gs . . 5 8 TOTAL CREDITS 70,811 4.8 18 6 OEBiTS 7 ,3 1 2) Dec 1 3a[jr:e T'ansferred ':orr Incsne 7 8 '6 ;5i Other Cecils :o Retained Earnirgs . . & 9 {320) Apo'OanatiORS for Sinking and Other Fjrcs . . 9 10 (62 1 ) AporoEriatons for Ct.-wr Purcoses . . 10 11 (523) Dividends: Comrron Stcck . . 11 12 Preferred S'ccii* . . 12 13 TOTAL DEBITS . . 13 14 Net rcrease (Decrease) dj'irg Year (Line S minus Line 13) 70,811 4.818 14 15 Balances at Clcse of Year (Lines 1, 2 ard U) 517,704 53.024 15 16 Balances from Line !5 \f) 53.024 N/A 16 17 J79B) Tcl3l orapprcpnaled Retained Earnings and Eqjity n 17 Undistrikuied Ea.-rw.gs (Losses) of Animated Corr.par.;es af Snd of Year 570.728 53.024 18 (797) Total Appropriated Ralained tam.figs: 18 19 Cred.is (Jorng Yes.' 5 NONE 19 20 Desits during Year S NONE 20 21 Balance at Case of Year S NONE 2f An-oi.ri of Assigned Feceral Income Tax Cc-.siquir.ces- 22 Ac;our.t6CS S NO.'.'E 22 23 Accou".t5'6 3 NOME 23 • l( at/ dividends have not been declared en cumulative preferred s'.ccX, g;,e cjmualive undeclared dwidends at beginning c! year and end of year. Ra.'icaa ATTJ31 Report R-l 20 Road Initials. KCSR Year 2C07 111 S5§f I I*! ^ *• 1 lit; DC I o n 5 § U U S CO III" ill ill' 03 o o ll "3 *-" « r> v" >o u> n n « in e i^ Railroad Annual Report R-t Road Inn a's.KCSR Vear.2CO? 21 240. STATEMENT OF CASH FLOWS (Dollars in Troasands) Give ife informal c.- as requests;) cc-.cerri.-g re casr. "G.-JS dur.ng Ihe year Either trie d.rect cr ind.recj rretnod can oe used. The irea method shc-.vs 89 ts p'.r.c.pal :3rr,c:.*e'VS opera'>.-.g cas-. receipts and payp-er.ts sue", as casn receive! (r:m custorre's 35 :asn paid la sic-pliers and employees. Ihe sun of .vhicn is r.et casn f c.v !;em ope.'atirg activities The indirect memo* Mais Aith net ,r.con>e and adjusts i! (cr revenue and expense items tr-ai were ncl :ne resell o' c=erat.ng casn Ira-i5acticr.s IR tne curarr. pe-ioa to reconcile it to -.el casn ilxv from operating activities if direct method is used complete lines 1 -<*', .'id.ia;! mstt-sc csmpiste '-HIM 10-4* Cash 's? the purpose ol tnis schedule sr-ail include cash and casn equivalents »h:cn are shcrt-wm. mgrly liquid 'rweslmer.is reacii/ ccr.verticie to -.rtov.n amounts of cash, and so rwar Ine.r maturity that iney piesenl ins.gmticarrt DSK of cringes m value because cf cnanges 1.1 iiieresl rates lr.'crmat,or> acojt all investing aig tira-rcin; acavil-es Atvcti do rat direciy attecl casn snal! Be separately disclosed in (cot- nates :Q th s schedule Ttie> st~a 1 clearly re aie ire casn (if ar./J and r.on cash asaecu c( transact ens Examples cf nercasn investing and transactions incli.oe ccnver! ng :*t-. to eq. CASH FLOWS FROM OPERATING ACTIVITIES ire Cress Cesc-iciion Current Year Friar Year Line No Check W Lire Cross Descrpl on Current Year Pnor Year L-ne No Checu 10 Incarre rrcm Ccre.nuirg Operations 75.629 74.531 to ADJUSTMENTS TO RECONCILE INCOME FROM CONTINUING OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Line Cross Descr.pi on Cjrrer* Year Pnor Yaar Line Ko Chsck (a) (b) (O No 11 Loss (Gain? on Sale cr D sposal of Targible Property and Investments (5.493) (9.828) 11 12 Dearec.at or arjj ArronizaLon Expenses 62.615 67.043 12 13 Increase (Decrease) n Provision for Deferred Income Taxes 27.017 28280 13 14 Net Decease <;.rc'?3se} in Uid slnbuted Earnings (Lossestof Affjiaies (4,818) (5.328) 14 15 Decrease 'increase) in Accounts Receivable 51,203 (2,248) IS 16^ Decrease -ircrease; in Ualarais and S jsplies arc! Other Current Assets (65,360) 17,066 16 17 Increase >.3ecrease} m Current UaoiKes Cthe: Than Debt (12.855) 40,711 17 18 Increase (Decrease) in Other - net 23,773 (136.037) 18 19 Mel Cash Prov.ded from Centring Ccarations (Lines 10-18) 151.712 74.217 19 2C Add (Subtract; Cash Generated (Pail! ay Reason cf D.sconlinuecf Operations and Extraordinary Items 20 21 N£T CASH PROVIDED FROM OPERATISG ACTIVITIES (Ones JS & 20) 151.712 74,217 21 CASH FLOWS FROM INVESTING ACTIVITIES L,ne Crass Descriotion Current Year Prior Year Lire No Chec* ia) (b) (c) No 22 Proceeds '-am Sa:e at Prope."/ 11.181 40.235 « 23 Cac.13i Expero^urei (370, 7C5) (191.698) 23 24 Net Cnin-;i in Terpsrar/ Casn Ir.vestnrsrts No: QLalifying as Cash Equivalen . . 24 25 Proceeds fion SaleiRepa/.Tenc of InvestTfncs ard Advances . 3,771 25 25 Purer-ass Pr.ce oJLorg-Term Invesi-nents and Adran:es . - 25 27 Net Decrease rirc:ease> -r. SirX.ng ana Olr-ei Special Furds . . 27 28 O^er • ret 1 14.671 72.024 23 29 NET CASH USED IN INVESTING ACTIVITIES (Lnes 22-28) (244,653) (75.693) 29 iContinued cr. next page) Ra'iroac Anrja: Repot'.-! 22 Road Initiate KCSR Year: 2007 240 STATEMENT OF CASH FLOWS • Concluded (Dollars in Thousands) CASH FLOWS FROM FINANCING ACTIVITIES Line Cr ass Description Current Year Prior Year Line No Check (a) (b) (c) No. 30 Proceeds from Issuance of Long-Term Debt 1 05.000 438.465 30 31 Principal Payments of Long-Term Debt (18.523) (410.123) 31 32 Proceeds from Issuance of Capital Slock - 32 33 Purchase Price of Acquiring Treasury Stock - 33 34 Cash Dividends Paid - 34 35 Other -net (3.491) (7.497) 35 36 NET CASH FROM FINANCING ACTIVITIES (L'nes 30-35) 82,985 20,845 36 37 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Lines 21. 29 & 38) (10.155) 19.364 37 38 Cash and Cash Equivalents at Beginning of the Year 30.793 11.429 38 39 CASH AND CASH EQUIVALENTS AT END OF THE YEAR (Lines 37 & 38) 20,638 30.793 39 Footnotes to Schedule 2*0 40 Cash Pad (Refunds) during the Year for Interest (Net of Amount Capitalized)' 66.769 66.795 40 41 income Taxes (net)' 724 (846) 41 'Only appi.es il indirect method is adopted NOTES AND REMARKS Railroad Annual Report R-1 I I Road initials KCSS Year 2C:? 23 245. WORKING CAPITAL (Dollars in Thousands) I 1, Tr-s scheme si-cJa mc.Lde cr.l/ data perta ring ;o rai.v.-a/ IrariSMfiation services I 2 Carry O-ilcaiCulat-o1) 3flir.es 9. 13. 20 3rd 2'. 13 liis nearest wide ri:rr.t6r Line Item Source Aiiiourt L 28 TOTAL WORKING CAPITAL Una 24 * tine 27 79.177 28 I Notes: (A; Use asmn-.sn carrier penlcn only. Common carrier refers to .-airway transportation senice (3) Rent Incore is tt-e sum of Schedule 410, calurrn (•lines 121. 122. 123, 127. 123. 129. 133. 134. 133. 203, I 210. 212. 227. 22S. 231. 312. 314 and 316 Rem if coma .s added lo rauway operating revenues to produca tcval reveres Rent incorr.s is also added lo total 24 Roac Initials KCSR Year 2007 • NOTES AND REMARKS 1 1 i THIS PAGE INTENTIONALLY LEFT BLANK 1 1 1 1 1 1 1 1 1 ' 1 1 1 1 Railroad Annual Report FM 1 1 I I F.;a3 n.13.5 KCSR 25 GENERAL INSTRUCTIONS CONCERNING RETURNS IN SCHEDULES 310 AND 310A i S:nedi. e Ji; src.d ; .•« n" cj=ac'S:SCKS 5c-ss. ::.-e- secueae» 33:s.-s. •.Rsec-u-e2 ttstss sra nvest-e<-J ad<«n:es 3.'aH^aiedco.rpan.°5 I ••e-s a i mzvce'". si c.o;c o' >«' Ai>o. c.sc.;se 4ie n,is-jn^r,:s —a;e c^sosej s.' sns vt>.i:e» ec.vi iurng:.-« year ard the ap: I n|-efc'o.'<-v; c.-aa1 in: s-c« • sa:n S':i»s ana eacMc'assrf 1) Carr'-f3 • aci.'.e i) Carrer*- raii'.e I 3) N 3 Tne sutc ass 1:31 C". :J c asses ;C). fci (i) 3rd (?) s--:^.5 K ice sari as !»ai pro/ oed ;c- cass '3'i T-e «inds si irj. ;sn:e.-t's rvesvneris ji Ife secjr.' es E( olh-3' ;:mpan es v:u 3 09 sn;«n ty s^ms^ oc;-s.:e :ne nances of I .-s. [he s, !cres:.-y ami Ts"e' es I II f.!.~ ng 111 :: sn IV V V,n;!esai3 an3 re'a I '.ra:e VI F.nsna. .n>_r=r,:e an: lea. estate I 1 VII ''"•a-ssasa'.o" ciTtris," ca-cu a-ni c:".e' p-o i: u . ides Vill Sen c«s Gavernrer: I All o-ner $ B, :af-.e.-5. as ;»e :*rm s LSs-d fep* 5 n»-l cctr.csn es c.vn nj or c;erai rtj lari/cads. rac.i!ies aijchjfy ir.e.-elo 5uch as bridges. (err«s. uri:i depots ant o:hs,' is-rrma' (ac. i:.es. slesa rv; cars. 3a:«i csis, c.- ng cars. f.'9 B*"! cars, express servco and facuues. electric rartays. h gw.way molcr vehicles sieaT-ocats 9R2 a'ner ma- ne •jarsftraSy equfnsm. pipe lines tatter ftan irose for tanspoftatkin c! water), ard cCier irstrjrrenia'ibes I devoted to l!-e va-spcrtaiicn of cerso-s or p-cperty Icr rw a Telegraph a-.d Is'spr.cne ca^-pantes ace re: mean! to be -nc;..dec:. 6 Nsrcarr er c-T-Tairiis sf-cJtl fcr l-e p.:p:ss of msse soieci-lss. inclLie 14 e;nar.e corpan.es. le'eg'apti campanes, rrrmng companies, |urng c 001:3^^1. riolsl C3.r,par«j esc. Pu-ely Ytfa-.nj cirnpn.es' are 19 Be c'assed as nc-carr.er ccrrpan.es. e /en Ihcugi Lha S«CJM« re!a by sued I cc.r^an es a-e 'ar;>,y c' er!.-el/ Si:se os.ea cr Bis.rr.ed sy car;.e's. 7 B/ an ac^.e crsc/si c-i is ~ear.t c'e vi-:cf> n-amts ,-s an o-'jar 13-131 for oserabng p.'cperty cr 33.T nis:enr.g .is Cr.ancj: af(a"s An irao/e corpcr- ai'cn .s ore .V-I:P -as c*e- fattei •/ sesorrM .n a csrvc'.itg :=rp^aLcn aid vwncti Rsttfier cperaui ;roseay nor axr.mtss u r 310. INVESTMENTS AND ADVANCES AFFILIATED COMPANIES 1 &ve particulars ot investments in slocks, bands, other secured osl.gations. unsecured notes and investment advances of companies affffialed win respondent included in accounts Nos. 715. "Sinking Funds'. 716. "Capital Funds*. 721 'Investments and Advances Affiliated Companies*, and 717. 'Other Funds." 2. Entries in (his schedule shcu'd be made in accordance with the definitions and general instructions given on page 25. Classifying the investments by means ol letters. Figures and symbols in columns (a), (b) and (c) 3. Indicate by means of an arbitrary mark in column (d) the cbhgafon in support of which any security is pledged, mortgaged or otherwise encumbered, giving names and other important particulars of such obligations in Icolnotes. 4 Give tola's for each class and for each suaclass and a grand total for each account. S. Erlries in column (d) should show date of matuiity of bonds and other evidences of indebtedness. In case obligations of Ihe same designation mature serially, the dale in column (d) may be reported as "SeriaCy 19 to 19 " Abbreviations in common use in standard financial publications may Line Account Class Kind of Name of issuing company and also lien reference, Extent line No. No. No. Industry if any (include rats (or preferred stocks and bonds) of control No. (a) (b) (c) 1 Investment in Affiliated Companies 1 2 2 3 721 A-1 VI Southern Development Company 100.0% 3 4 VII Caymex Transportation , Inc. 100.0% 4 5 VII Joolin Union Depot Company 33.3% 5 6 VII Kansas City Terminal Railway Company 16.6% 6 7 VII Trailer Train Company 0.627% 7 9 VI Southern Capital Corporation 50.0% 9 10 VII MSLLC 75.8% 10 11 IV Pabtex 100.0% 11 T2 VII Gateway 100.0% 12 14 Total Class A-1 14 15 15 Id Unsecured Notes 16 17 17 18 18 19 Total Unsecured Notes 19 20 20 21 21 22 22 23 23 24 24 25 25 26 23 27 Advances 27 28 28 29 721 E-1 VII Joplin Union Depot Company 33.3% 29 31 VII Kansas City Terminal Railway Company 16.6% 31 32 32 33 Total Class E-1 33 34 34 35 35 35 36 37 Total Advances 37 38 38 39 39 40 Grand Total Account 721 40 Railroad Annual Report R-1 Rcaa Inrja's KCSR Year a;07 27 310. INVESTMENTS AND ADVANCES AFFILIATED COMPANIES - Concluded (Dc'Jarsin Thousands) Se used to conserve space 5 II any af She ccmpa lies ir;h,ded n (h.5 s:hsc Je are csrl.'o.yes' t/ respcr.de!1! :*e sercem o! csnlrol sto jU be sr>o-Ari in co.i.™ (•; In case an/ cvrainy ksied is ccnirc.lsa ether than ihroujn sc'ual :.-,rsrsh,p af secuMies. g.ve particulars m a fcoino:e In cases of ,oinc canrol. give names cl o'.ner pan.es and pacers o) ccnt:i 7 If an/ advances reported are pieced, gito sartictiars n a tca'rale a in.ejlT.ents ,n ccmpar.es in .vncn re irer rs niginai cost ar present e^Jty m '.olal assets are less Iran S10.0C3 rray be C3irbined:n ens figure 9 A.sa r:iu3«d sriculd be in.esi-r.sr.ls IT. Ln.nccr&a.'a'«d en!i< e: s^cr. as 'assee crga.-JZDLcns (excus ve a! amotnls nornna ly setliet! en a cjrrenl Oasis! 10 This scr.e dbie sncula net ivj'-jce secuni es JSjed cr assumed ta/ respcnaenl 1 1 For afh.a'.es vrh.:h ca n:t rc?u.i IB ir,e Inters'jle Commerce Comm S3 en ord are jcinby snned gne "anes and ex'.anl c! csnircl cf oilier ertit.es by te3'."3Set invest.'"*:'!: and Ad-.ar.c2s Line Cpen.nj Balance r.ddiSo.-.s Desjttsns Closing Ba'ance Oispcsw af- Adjustments Cwiderdscr Lir.9 \o. (i! olhe- Uian sale. ProCtjLcss) AcccurtrziS inreras: Created No explain) to Ir.ccme in W) P»> 1') 0* W (l) 1 1 2 2 3 3.S-7 . 3.255 592 NONE NONE 3 4 306.333 . 53,515 252.324 4 5 13 . -.0 5 6 133 . . 183 6 7 20 . . 20 7 9 14.530 . 8.389 5.841 4.000 9 10 . 25.411 . 26.411 10 11 26 26 11 12 55764 56.764 12 14 324,429 83.201 £5459 342,171 4.000 14 15 15 15 ...... 16 17 17 18 13 19 . . . - - . . 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 26 28 29 127 . . 127 . . . 29 3' 3.1« , . 3,144 . . . 31 32 32 33 3,271 . . 3.271 . . . 33 34 34 35 35 35 38 37 3,271 . . 3.271 . . . 37 33 38 39 39 40 327. 7CO 83.201 65.459 345.442 . . 4.CCD 40 \ctes1 L Ra.ircad Ar.iual RipsK R-1 I 30 Reed Initials KCSR Year. 2007 I a - •Si I I I I I I _ CO CO I OT 3 5 a T" I I I I I 111 r O I I 3 s! «S I I 3 I Ra.lrcad Annual Report R-1 I I I I a.- lv.3.s KCS1 Vea- 31 INSTRUCTIONS CONCERNING RETURNS TO BE MADE IN SCHEDULE 330 ' . G»e pan cu i't c' bs j-ces 31 !ne sej ~n rg a-a ess* ;( ins >ea- 310 J 38 :"3.~ges i.'/;) Ire year in Aceou-1 ho 721. "Read ana Esuicrrsnl I Press-:/.' •"3 Ax;«-i So 73? •jTprc.srrerns en Lease: F'cpeny.' c'assfea oy p- msry acccurls •.- accordance VK:I ;"e UP tarmSyflem clAcccunis le.- RSI .-cad Cancer e> T.~e csta-ces, B/ ? -irrary ac::.-is. sncu.3 irso'ar as «nc.v. ce s-s:«i .« co w r (jj) ari ail cha.i;es mai* sj -.5 'ft yen liasc be analyzes .n CC*IT.« (:} !c S'l iiclLSive Cc ..r-i (3) s-C'.id se ire rai :t a-e a.T;i,r!s n c: iirr-s (c) Tr-fc.g" (tj Ceiuirn pi| .3 *>* a;;regai» c' c:li.rr.ns •':) 10 (I}. "iwSi.'t G'ii: ::!3.3 :l ::'."TS (6) aic ;-j s".:jiS eq.a ve iu-1 ci A:::'jT.s 711 a-a ?3? fcr re respeclf.'e te'>s I r 2 in c:!unvi (•:; 3'S :: ;e STJ-A • a scu'seT.:r:5 r-ace Iv i^« ssf: t ci-:;ose c.' a.'ciiasirg. cc,-s; ucung ana ecuip: r; mJA b-«s ard fcr ire exieis^o cf c 3 .'res as p.-c-..c« 'or .1 nj.'vCis-. 2-1, 'lams :o c« cna-js: - s! ire u-rfc-T. S»swm cf Acccjn's fcr Rastaad Ccn-par. es t:r SUS.T .isms. 3 'n cc unv (c! s u :e sr;.'.r .i-e cosl ot a -a .way a- POTOKI i"5'ec;. aca j-eo as ac cpeia-Jrj s^i ly w sj-sie^i 6/ ri,'cnas<. .Terjtc. eeniEinJai en. I r«o-;a-iZ3: C"- race tay- g slia cr Irais'e." or cllenMie I 4 !.- «'.-m ,c: 3-3 ;«; s.-c. a 3« .-c' en-res ce .en-g a»;a- -d ce:i5rn-en(s. as iefirsd. 5 Ir. cc..Tn |f| sn^j:: c« 5-:e-2d a I crei. j -*:-es9n^g prsctro so.;, aoanaorea or otnenv.se reined. 5 Bsih vt aes.: 3-; C'« '. ;»>.-c..e3 ji m- '.'anj'e-, a:,,s!Te'-; s: ; ea-»-:e :a-v>esnrea dan : equ p-nj.-; ac:sunis. s-o--'d ce in;-ucea n the cstLTn in wi -si 3ie .;e-r v.js n ; 3. v n:-j:e3, a sc As rais'e; c< ;••;*> ea-s :e:ift sr c;ea.:s 'TOT. iwesiiren! m rcaa ari e;u prceti t: opwa'i.-g expenses cr o:he: I 3cccv,r:s cr <..c£ 7 I' c.nrg ire ,ea- a-. n3i-. :js: cnarge c' »' -ZO.CCQ cr r.o.-* .-.as mj=s :o Acccurt .-;o 2. 'Lane fcr Trars:3-Jii:n P.tpcses ' sla:e >n a (=cro:e He I »s' lou'izi area end ;irer ie;a Is A.-ICR wl' deniir/ Ire creifci/ 9 Repcrt en hne 29 ar-cur.is r.ai nciuo.ble 11 the or.nary rsa; Kcc^nts Tr.e items raportao sr.o Ja se bneil/ iderl.fwi and ex:la n£d under *No!es and Rerra vs.' c eij.-. Arraj-uj itex!: ee -epclsd c--< tnj I ne cn.y '.n:er special C':um stances, 'jsuai.y after psr.T.iSicn .1 cbla ned from the Cc-rrrsss on 'cr cxcspl.cns lo p:$i:"b*^ accsjri'.ng Rstfa-M o sucn ai.lrcr;y snc., J se mace Anen ei^ainr.g the amouili repcned. Respcndena mus: roi maXe arciirary I cna.ijej *3 *e piriet! s:ua :r:a'jrrn r.ua.n3su 330. ROAD PROPERTY AND EQUIPMENT AND IMPROVEMENTS TO LEASED PROPERTY AND EQUIPMENT (Dollars in Thousands) Expenditures during Expenditures during Balance at the year for the year for Una Cross Account beginning original road and purchase of Line No Check of year equipment, and existing lines, No road extensions reorganizations, etc (a) (b) 1 (2) Lane for transportation purooses 63.373 NONE NONE 1 2 (3) Grading 172.934 2 3 14) Other r.°gh:-cf-way expendi:ures 770 3 - 4 (5) Tunnels and subways 36 4 5 (8) Bridges, trestles and culverts 200.930 5 6 (7) Elevated strictures - 6 7 (B) Ties 445.064 7 8 (9) Rail and other track material •575.822 8 9 (11) Ballast 149.237 9 10 (13) Fences, snow sheds and signs 1.226 10 11 (16) Station and office buildings 36.776 11 12 (17) Roadway buildings 460 12 13 (18) Water stations 84 13 14 (19) Fuel stations 7.929 14 15 (20) Shops and enginenouses 51.397 15 16 (22) Storage warehouses - 16 17 (23) Wharves and docks 702 17 18 (24) Coal and ore wharves - 18 19 (25) TOFC/COFC terminals 20.041 19 20 (26) Communication systems 63.060 20 21 (27) Signals and interlopers 54.603 21 22 (29) Power plants 23 22 23 [31) Power-t-ansmission systems 1.044 23 24 (35) Miscellaneous structures 9.021 24 25 |37I Roadway machines 41.158 25 26 (39) Public improvements - Construction 11.905 25 27 '44) Shop machinery 9.152 27 28 45) Power-pfanI machinery 188 28 29 Other (specify and explain) . 29 30 TOTAL- EXPENDITURES FOR ROAD 1.916.985 . . 30 31 52) Locomotives 162.720 31 32 (53) Freight-train cars 104.649 32 33 54) Passenger-train cars . 33 34 53) highway revenue equipment . 34 35 55) Floating equipment . 35 36 37) Work equipment - 11.527 36 37 SB) Miscellaneous equipment 12.583 37 38 59) Computer systems and word processing equipment 103,628 38 39 TOTAL EXPENDITURES FOR EQUIPMENT 395.107 , . 39 40 76) Interest during construction 2.150 40 41 SO) Other elements of investment . 41 42 (SO) Construction in progress 290.101 42 43 GRAND TOTAL 2.604.343 . . 43 Note: In the 2006 R-1, software/software amortization and software construction In progress were excluded from Schedule 330 {lines 38 and 42 respectively) in error The 2007 beginning balances have been restated to properly include these items. Railroad Annual Repcrt R-1 ReaJ !n.tials. KCSR Year 2C07 33 330. ROAD PROPERTY AND EQUIPMENT AND IMPROVEMENTS TO LEASED PROPERTY AND EQUIPMENTConcluded (CcJars n Tnoi.iar.ds) expend lj;ss Cretfti tor Balance a: Lre C'css fcr acd.!icr.s prope'ty >e; red Net cnan;as close L..-M Nio Chesr GJ.-rg'.-.e ,sar di-r (13 !re yea.' curirg tne /ear of /ear No ia' 10 13) {•>> 1 14,154 410 13.744 77.117 1 2 28825 400 28.425 201.359 2 3 . . . 770 3 4 - . - 36 4 5 17.C42 1.409 15.633 216.613 5 6 . . - . e 7 1C8.293 218S1 86.432 531.495 7 & 94,250 8910 85.340 661.162 8 9 41.039 3.330 37.709 186.946 9 10 49 152 (103) 1.123 10 11 806 249 557 37.333 11 12 55 8 48 508 12 13 . 14 04) 70 13 14 512 239 273 8.202 14 15 325 . 325 51.722 15 16 . . - . 16 17 117 - 117 819 17 18 . . . - 18 19 435 . 495 20.538 19 20 4.431 - 4.431 67.491 20 21 21.539 94 21.445 76.048 21 22 . . . 23 22 23 . 31 (31) 1,013 23 24 47 1 46 9,067 24 25 2.028 3.792 (1.764) 39.394 25 26 5.841 171 5.670 17,575 26 27 235 404 (169) 8.983 27 28 . 131 (131) 57 28 29 . . . . 29 30 340.084 41.606 298.478 2.215,463 30 31 44.991 80.311 (35.320) 127.400 31 32 11.184 1.924 9,240 113.889 32 33 . . . . 33 34 . . . . 34 35 - . . . 35 38 2.998 508 2.490 14.017 36 37 222 366 (144 12.439 37 38 11.327 23.249 (11.922 91,706 38 39 70,702 106.358 (35,656 359.451 39 40 . 3 (3 2.147 40 •41 - - - - 41 42 (40.C81 (40.081 250.020 42 43 370.705 147.967 222.733 2.827.081 43 RalroaO Annual Repci fl-l I 34 Road Initials: KCSR Year 2C07 I 332. DEPRECIATION BASE AND RATES - ROAD AND EQUIPMENT OWNED AND USED AND LEASED FROM OTHERS / (Dollars in Thousands) 1 Sha.v 'n cclunni (9) end (e). fcr eacn primary account, lha eeprec'alicn base used ID compute the depreciation cnarges for the mcntn of January, and in co -jrrs jc) ar.i (1) snow ine depraciat'on base used to confute ire depreciation cnargss tat the ntgntn cf December, in cofcnws (d) and (g) show the coinposila ra:es used ir computing ;na cepreaauon cnarges to the montn cf Decemser. and on lines 30 a-.o 39 cf these columns show the composite percentage fcr all road I and «3vjiCTtam accounts, raspec:n eiy ascertained by apc.y.-ig trie pr.rnary account cc-rnposile rases io lha depreciation oase used n ccmput.rg the cnarges fcr December and dvidirg lt>e total so computed by me total depreciation oase lor via same month. The depreciai en ease shcula not include lha cost of equipment used cut no: c.vnec!, unen :ne rents therefore are -nciueed rn tne rent lor equspmenl and Account Nos. 31 -22-CO. 31-23-CO. 31-25-00. 31-21-CO, 35-21 -CO. 35-23-CO 35-22-00 and 35-25-03 It should induce Uie cost of equ-pmsnt owned a-.Q leased :o Dinars when the rents therefrom are included in the rent fcr equipment Accounts Nos 32-21 -CO, 32-22.CC. 32-23-CO, 32-25-00, 25-21-00. 36-22-CO 35-23-00 and 35-25-00. inclusive Tne composite rales used should be these prescriced sr ot.1er.wsa authorized oy tne Board, except lhat where tne use cf component rates nas been authorized the composite rates to I be shewn fsr the respective primary accounts should be reccrrputeo frcm lha December charges developed by the use of the authorized rates If any changes in rates were effective curing the year, give full particulars >n a fccinote. 2. All leased properties may ce cornered and ore composite rate computed fcr eacn primary account, or a separata scnecjle may be included Icr each such property 3 Shaw in columns (e), (t) and (g) data a:plicab!e to Lessor property. wnen the rent therefore is included '-n Account Ncs 31-1 1 CO, 31-1240, 31-13-00. 31-21-00, 31 -22-CO ana 31-23-CU. inclusive. I 4 If cepreaa::on accruals have seen cisccntiru.ed for any accojnt, Ine depreciation base should be reported. neverJieless, in support cf depreciation reserves Authority tar the disccnutuance c! accruals should be snown in a footnote .rxJ.caling the accounts) effected S D'sclaiures in IRe respective sectcps of tftis scneau!e rray tie crafted if e.lher total road leased Iroii others or total equipment leased from others reoreser.ts less man 5% cl total roao swnad ar tctai equipment owned, respecU-eiy OWNED AND USED - • LEASED FROM OTHERS De:reoai on base Annual Depreciailon base Annual I Lre Account composite composite Line No Al bsqi.-.-.T.a At ciose rale Al baqinninp At close rate No of rear of veer (percent) cf year of year (percent) 'al fb) ie\ W '»! Hi fo) ROAD 1 (3) Grading 172.934 193.900 0.84 1 I 2 (4) Other, right-of-way encendilures 770 770 1.23 2 3 (5) Tunnels and subways 36 36 14.46 3 4 (6) Bridges. IresPes and" culverts 200,980 201.868 1.39 4 5 (7) Elevated structures - . - 5 I 6 <8) Ties 445.C64 506,513 290 rOTAL ROAD AND 6 7 (9) Rail and older lrac< material 575,823 629.364 2.34 7 a (11) Ba»3st 149.238 176,999 2.49 EQU.PMENT LEASED FROM 8 9 (13) Fences, snow sheds and s'g.is 1.226 1.225 1.29 9 10 (18) Slanon and office buildings 36.776 37.039 2.92 OTHERS IS LESS THAN 5% 10 I 11 (17) Roacway cuttings 460 450 1.26 11 12 (IB) Water statoas 84 84 3.77 Or TOTAL OWNED 12 13 (19) Fuel stations 7.929 8.352 327 13 14 (20) Shoos and eigmehouses 51.397 SO. 194 103 14 - . . I 15 (22) Sto'age warenouses 15 16 (23) Wharves and decks 702 819 (1286; 16 17 (24) Coal and ore wharves - - . 17 18 (25) TOFC/COrC terminals 20.041 20.537 1.67 18 19 (26) CommjacaLcn systems 63,060 68.899 0.81 19 I 20 (27) Sana's and interlorters 54.604 60.19S 252 20 21 (29) Power plants 23 23 . 21 22 (31) PoweMransmiss.cn systems 1,044 1.044 1.55 22 23 (35) Miscellaneous stniclures 9.021 9,057 0.03 23 24 (37) Roadway machines 41.158 39.786 (1.09) 24 I 25 (39) Public .'mpro/eme'ts-cans^uciicn 11.905 14.955 3.06 25 26 (44) Sncp mach.nery 9.152 9.190 0.60 26 27 (45) Poner-plant machinery 188 188 1.48 27 28 All other road acccunls . - . 28 I 29 Amortization (adjustmerls) . - - 29 30 TOTAL ROAD 1.853.615 2.029,500 2.05 0 0 30 EQUIPMENT 31 (52) Locomotives 162.720 112.460 5.90 31 32 (53) Freight-Iran cars 100.149 99.490 292 4.500 11,684 4.34 32 I 33 (54) Passenger-train cars . - . 33 34 (55) Highway revenue ecuicmenl - . - 34 35 (53) Floating equ'crnen: . . . 35 36 (57) Work equipment 11.527 14.524 1.33 36 I 37 (53) Miscellaneous euulomenl 12.583 12.368 264 37 33 (59) Computer systems and wcro prccess.13 ecu>a-iient 103,628 114.587 876 38 39 TOTAL EQUIPMENT 390,607 353,429 468 4.500 11.684 434 39 40 GRAND TOTAL 2.244,222 2.382.929 N/A 4.500 1 1.684 N/A 40 I I Rai'road Annual Report R-1 I I I I 35 335. ACCUMULATED DEPRECIATION - ROAD AND EQUIPMENT OWNED AND USED iDtfsrs «-. TPCusarSs) 1 O.j:!ose n-.e icq-red ntermaion in regard :o cred.ls ana seSKs to Acccurl Mo 735 -Accumulated (Jesreaasai. Road ana Eq-j pment Fiopeny • duMg we >ea' rc-li:.r.s :s c.'.nea anJ used road ara equipment neuse ertr'.es to depreciation ol «C.L pnwni cwr.ed 0.1 not used v,*jtn U~.e fesLttiry rents are included I ,r. ife 'Lesie Re.-js!s-.C:ei;-Hq-.p.Tei-ir acicurls arc -Ctna' Retts-Cied !-Es.jiprrj:rr accsunls Exciude any enlr.es fc- cepieoai.cn cf squipmer4 Van is jsed Sut not o.'.-.^a .-.re.-, the res-ling rents are included m 'Lease Renla!--Dehi-£qj sm?nf account a'id "O'her Renti-Dec>t-Equi?menl' ace: u;: Is (See 5 ;reo«fie 35 ' to; the acc-irs. a:es rt=rec.a'icn to road a~d squ pmen! o/.nsd andtease d1 0 offers } Z V arty date are i—lacec .n c;tu,Tins (d) or (fi. explain me enlr es ,n aetai. 1 f. aeb.l ca'B-\ce .1 co J.TV.S tbi o.- .;; So- any prmaiy accjutt Sfiajd be designated 'Ct ' 4 if there s any ir.ecns.ster.iy tetoeen ,":e a«d.is to the reserve as sr,o.vn :n cetirnn (c/ ard the chatgei u operating expenses a h£ explanal en shcold Be I givei S 'Enter amounti feprsst-.ij.-g airontzala-. uicer art aulrioreed wncrtizav-on p'og-am outer vun Icr defense prcjecli an lues 29 and 29 CRE3STS TO RESERVE CESIT5 TO RESERVE Q,n-g 'tie /ear Cur ng ±t >ear I Alls.1-: Ba'a-ca Cna-ges " Otfsr Rewemsrij Oder 3a:arce Lire Coss i- re; nn.rg osera:,rg creeps debts at clcse Lfi Nc -na:V o'/sa- expwses " clyear Ko (a) !SJ (=) !3) l«) P) IS) ROAO I 1 (3j Gra:..-s 2840' 1,615 61 400 29827 1 50 2 l-sj Owe-. r;-!i-cl-AJ/e«=er=u,ies M4 S . . 3 450 2 3 i5; 7>,-nitsands^i.va«s 17 S - . . 22 3 4 (6) B'dses irssvesa-dc-jl'.e'a 5 Cc i-r-.-i CREDITS TO RESERVE DEBITS TO RESERVE Dunng the year During Ihe year Acco'.r; Balance Charges to Other Rei.rements Oiler Balance Lire Cross at begmnng operating credits deoils at close Line No Chert of year expenses of year No (a) (» (c) (d) {el (0 (9) ROAD 1 (3) Grad.ng 1 2 (4) Other. ngM-ofw/ experdii'-res 2 3 (5) Tunnels ana subways 3 4 (6) Sr.dges. tres:'es arg culverts 4 5 (7) Elevated structures 5 6 (8) Ties 6 7 (9) Rail and other track malenal 7 8 (It) Ballast 8 g (13) Fer.ces. snow sheas an; s:gr.s 9 10 (16) Stalicn and office buildings 10 11 (17) Roadway bu IrJings 11 12 (•8) Wa:er stations 12 13 (19) Fuel stations N/A BASED ON 5% RULE 13 14 (20) Shops and enginehojses 14 15 (22) Storage warehouses 15 16 (23) Wharves arc decks 16 17 (24) Coal and ere wharves 17 ia (25) TOFC/COFC term.nals 18 19 (25) CEmmurrcat.on systems 19 20 (27) Signa's and mterfcdters 20 21 (29) Power plants 21 22 (31) Power-transmission systems 22 23 (35) M.scelianeous structures 23 24 (3/J Roaoway machines 24 25 (39) Pjfciic improvemen:s"Cans:rucl;sn 25 26 (44) Shop machinery' 26 27 (45) Power-riant macrwiery 27 28 A'l other read accosts 28 29 Amcrti23t.cn adjustments 29 30 TOTAL ROAD 30 EQUIPMENT 31 (52) Locarrotives 31 32 (53) Fre ght-l/am cars 32 33 (54) Passenger-ira'n cars - 33 34 (55) Hignway revenue equipment 34 35 (£5) Floating equipment 35 36 (57) Work ecu pmenl 36 37 (58) M.scel'aneousesuon-.erit 37 33 (59) Computer systems ani weri processing ecu'pment 38 39 Arrortizapon acjustmenb 39 40 TOTAL EQUIPMENT 40 41 GRAND TOTAL NONE NONE 41 • To be reported wiln equipment expenses ratner than W 4 5 expenses. Railiead Annual Report R-1 3:3d i-.liais KCSR Yea'-2007 37 340 DEPRECIATION BASE AND RATES • IMPROVEMENTS TO R OAD AND EQUIPMENT LEA SED FROM OTHERS (Del art in Thousand51 1 Snc« ,n ccLfji ic) isr sick p'm ay ac:a',-l r,t depre: er-on ba« used m iwrEtAri; Shede;rec:ai.an erargss lor the .TOti,n c' January, and in column (c) show Lie depreci3t.cn base wsed in csmsjarg ire deuecialcr. charges for u-.e morn of Decc>mb«r in coljmn (d) shew the eg npcs'le raiei used in coraput^ig tne fiep;ec.a'.9.i cnaiges far ire msnlh el Dsce-niwr and 01 .inn 33 and 40 c* tnese c3unv> I shan *.» compos.!* percentageof a!l road ant! equipment a-.coaris. respe:!sveiy ascertained ay app yng :-e pnmary account =cmpos.H rates :o tie aapreciaf.on base used n ccmpui.-g ihe charges for Decs-Tiber srd d vidins the lolal so ccr-puted by the tolal desre: aaan tase fo- !he fsr me tame rr.gnl.1 T."_s scnecule si-culd 'ncUjie on.y implavements lo leased prcpcrty caarjca Ic .Account 732 ' .inprove-nenu en Leased Prejen/ " The ccmpos.te ra»i um sncuid be those prescioed or other.1rise authorized by tve 3asrd except I* at v-he.-e Ice -se of ccr.p;t«n: -ates ras aeen au'.iorjea. !t» CO.TMS le rales 10 u-a accounti should be reccrRcuted from !.•: Oecemier cnaiges developed sy f;e uaa of the authorized :a;es. It any charges :n r>:es .verc ffffecive dunng the y«air oi Osp'sdaton aaia Annual ccrrpcsite Lint rate Lne No AccO'-n; At beginning of year fit close o* year (psrcsnO No :a> IB) (=1 (s) ROAD 1 |3) Graj.-.g 1 2 14) Olner, ngnt-ol-Aay e>psnc.!jie! 2 3 !5) Tunnels and s*b.vays 3 4 (B) Eddgas, iiaslies and cu,ven:> 4 5 !?) Eievawd stnjcxres 5 e (B| "Pai S 7 [St Rail and o:r.?( tracx matena 7 a (Mi Eailast 8 9 (13) Fercas, sno.v srccs ard S'qrs 9 10 (15) Salionar.dcff.ceb-iloings 10 1! (17) Roaoway Buildings 11 12 (13) Walar stanans M/A BASED CN 5',') RULE 12 13 (13) Fuelslatons 13 14 120) Shops and eng'nehsusss 14 15 (22) Slcraga warehouses 15 16 (231 VJharvei and dccXs 16 17 (24) Coal and o;e ntants 17 18 (25! TOFC/COFC lenr.nart 18 19 (26) Convnunicalion svsMms 19 20 {27) Signals and mtefockers 20 21 (29) Power plants 21 22 O!) Power-transmiss.an s>sfens 22 23 (35) MisceHanecus strucluras 23 24 (37) Rcadvi^ay macrines 24 25 (39) Public !mprosemsn!S"C3niin.caon 25 26 (•14) Shoo machiner/ • 26 27 Hi) Po «ar- plant mach.nery 27 28 Ait otrier road acccLnis 23 29 Amcrtisaiian actuStir^nts 29 30 TOTAL ROA3 22.904 23.921 419 30 EQUPMENT 31 152) LccomoS'es 23.749 32.407 eie 31 32 (53) Fra c.nl-tra..n ^rs 573 4.0S7 2169 32 33 (54) Passerger-ua n cars - - - 33 34 (55) Highway r^-enue equipment . . - 34 35 (£9) Floating eq-jicme-.i . - - 35 36 (57) Wort, equsmert; 135 135 079 36 37 (58! M,s:ellanec-s «:u.p~ent 277 277 367 37 33 (59;- Con-.pute'j>-slems3r3wcni process ng e3,iifrrert 17 17 . 38 39 Anol'zat on ad usirrenlf - - 39 43 TOTAL. EQUIPMENT 27.751 33.923 3.59 40 A; GRASO TOTAL 50.655 60,344 7.47 41 • To oe -aborted >v tn esuipiren; expense rav.er ihan V7 & 5 expenses Ra.i'oad Annual Repo-. R-l 38 Read Initials: KCSR Year 2007 342. ACCUMULATED DEPRECIATION - IMPROVEMENTS TO ROAD AND EQUIPMENT LEASED FROM OTHERS (Dollars in Thousands) 1 . Enter ir.s requited information corcerrung to ceb,:s ar.d credits to Account 733. 'Accumulated tieprecahon-lmarcvemenls on Leased Property.' during the year retang a improvements made to road and equ'prnent properly leased from others. Ihe depreciation charges far -an ch are included in ooeraiing expenses cf :ne rescsndent. 2. 1' any entries are mace 'or C3h.rnn ( i) 'Oirer cred is' cr column (0 *0tr.er debits.* slate Ihe facts occasioning such entries on page 39 A debt balance in cc!umr> (9) cr (g) lor any primary account shsj.i ce s*so.vn in parenthesis cr designated 'Dr ' 3 Any inconsistency between Ihe crecits to me reserve as shown in column (c) and the charges to operating expenses should be fully explained en page 35 4 Show m cclumn (a) ire debts to :he reserve ans.r.g from retirements Tnese de: ts sr-cald noi exceed investmeni. etc. 5. Details in me respective sections sf this sehec jle may be omitted if eilner total road leased from others or total equipment leased from oiners represents less (nan 5% a.' tola! road ov.nei cr total equipment owned, respectively However, line 39, Grand Tola), snoiild ce completed. CREDITS TO RESERVE DEBITS TO RESERVE During the year During Ihe year Acccunl Sa'ance Cnarges to Other Retirements Other Balance Line Cross at Beginning cperai ng credits debits at close Line No Check of year expenses cfyear No (a) (b) (c> (a) (e) (0 (g) ROAD 1 (3) Grading 1 2 (4) Oiler, right-of-way excercf -ures . 2 3 (5) Tunnels and sue ways TOTAL IMPROVEMENTS TO ROAD 3 4 (S) Br.dges L'es:!es ana culve.ls LEASED FROM OTHERS IS LE SS 4 S (?) Elevated structures THAV 5% OF TOTAL ROAD OWN ED . 5 6 (8) Ties . 6 7 (9) Rail and ciher track material . 7 8 (11) Bates! . 8 9 13) Fences, snow sheds and signs . 9 10 (16) Station and office buttings . 10 11 17) Road-.vay buildings . 11 12 (18) Water s:aliens . 12 13 (IS) Fuel stations . 13 14 (20) Sncos and engineucuses . 14 IS (22) Storage warenouses . 15 16 23) Wharves and docks . 16 17 24) Coal and era wharves . 17 18 25) TOFC/COFC lerm.na'5 . 18 19 26) Communication systems . 19 20 27) S.gnals and intertockers . 20 21 29) Psyjver plants . 21 22 31) Pcwe'-lrz' 39 GRAND TOTAL 17.677 4.543 1.521 1.799 . 21.942 39 • To be reported with equiprrent expenses raiherthan w & S expenses. RaJroad Annual Report R-1 1 | Roa3 ln.i.3is KCSR vear 2007 39 NOTES AND REMARKS FOR SCHEDULE 342 1 1 THIS PACE INTENTIONALLY LEFT BLANK 1 1 1 1 1 1 . 1 1 1 1 1 1 1 Pa tread #>n-ua Repot R-l 1 1 40 Road IniKa's: KCSR Year 2007 350. DEPRECIATION BASE AND RATES - ROAD AND EQUIPMENT LEASED TO OTHERS (Do&rs in Thousands) 1 This schpdule is in ce usec ft cases where TB rels'pd deprecation reserve is camsd in the accounts cf B-e respcncent and the rent therefrom is inchidsc in Accounts 32-1 1-00 32-12-00 32-13-CO.22-21-CD.32-22-CO.ani! 32-23-00 2. Shew in columns (a) ant (c) fcr each otmaiy 3cca>j.il. the deprec.at.cn base used m computing the depreciation for tha months of January and Cecemcer. respectively, wilh respect to read and equipment owned By the respondent cut teased to o:ners. the depreciation charges for which are not includicle in opera* -ng excenses ol We rose-oncer::, but for »n.:h the ceareoalion reserve is recorded in tie accounts cf the respcndenl. If the base fo' read is other than Ine original cos: cr estimated origins' ccst as lauid by Ine Beard's Office cf eccnorruc and Environmental Analysis Drought lo a current dale by me respcnoen! from its Order Ha 3 reccrss and accounts, cr 19 elher than leaser vaxe fcr equipment, a full explanation snouid be g.vefi. comscs :e percentage for ait read and eqiscrrari accc.nts. respectively ascenamea oy applying :ne primary accounts composite rates to Ine Depreciation 3 jse used :o compute the cesreaatian far Decerrcer and divicing tne tolal also compiled by the eeprec-a'^an case. 4 if depreciai on accrua's have oeen cisccnlmuec for any account, Ine depreciation base should be reported, nevertheless, n support cf depreciation reserves Authority for 'he d s:onilnuance of accruals sr.ci/3 be shown in a footnote indicating the accounl(s) affected. : If leal road leased to others is !ess than 5% of total road c-.vned om;t If total equipment leased to others is .'ess than 5H of lolal equ'prnenl ov.ned: omit. Ho'.veve.-. L.r.e 39. Grand Torai. should ce ccmp'eted. Decreoat on base Annual composite Line rate Line No. Accoun! At besting of year At close of year (percent) No. (a) (b) (c) (d) ROAD 1 (3) Gracing ALL DEPRECIATION EXPENSE=OR OWNED ROAD AND 1 2 (<:) Outer, ngnl-of-v.ay expenditures EQUIPMENT LEASED TO OTHERS IS RECORDED IN KCSR'S 2 3 (5) Tunnels a^a :ibwa>s OPERATING EXPENSE AND TOTAL ROAD AND EQUIPMENT 3 4 (S) Bridges, trestles and culverts LEASED TO OTHERS IS LESS THAN 5% OF TOTAL OWNED 4 5 (7) Elevated structures ROAD AND EQUIPMENT 5 e (8) Ties 6 7 (9) Rail and otner tracX maienal 7 8 (It) Ba'last 8 9 (13) Fences snow sheds and ssns 9 10 (16) Station and office auMiigi 10 11 (17) Roadway Build igs 11 12 (18) Water stations 12 13 (19) Fuel stations 13 14 (20) Shoes and enginenouses 14 15 (22) Storage warehouse* 15 16 (23) V/r 39 GRAND TOTAL 108.457 107.863 N/A 39 Railroad Annual Report R-t I I 41 351. ACCUMULATED DEPRECIATION- ROAD AND EQUIPMENT LEASED TO OTHERS •Cs a-s nThcjsan:sl • Tr s s:r.« r; ei .rt the ac:;-jnis ;i 'J-i resccr-:en anc Itis rent !-e'=f'O,-n is^ti^oed n 1-W 32 -2-tO. 3£-'3-c;, 32-2'i-K 32-22-CS a-c 32-23-:0 I : 1 2 C 5C-C53 :'5o:>ar'a je'jis:i' i::0u"!735 •Ac:J-'i.'a'*d3i:'e:,aic""flaas ar-i £<;. Mf sr. . F-oceiiy/ aj-fty re >«ar 'ein.r.j -o read and eq-'i— eii ,eaus :a c'_-.e-s. ttte CE^af.-iot na ;ei lor ,-.R.cr are -oi nc u; 6 e .t 2pe.-al.ng ttfenss c' r-e lespcndcm tSei ScredJe 333 'cr ife resene re'a, ig ;o rcao ara ss.ipTen! c*ied 3.-.S use; B/ tr-e 'espsnie-i;. 3 l!ar,ye-Ir,es a-e Taie 'cr 'Ov;sr C.-e;.-s' a.-d "Otter C«rs ' sial* Ire ':xrs ocus-cn n? 3u:h envies A dee.! ca'ir.cs n cc's^nrs {&) or (g) 'cr any Dniva.-y accj. I 4 Da'a $ n •re tes:e:'i.s SB:.:-S c1 1- s sa-.eci.le rrsy oe afea 'I a !••«•:s(3' -oaa 'eases -o c(r«-s c' W.3'. Kuifm»-t 'eases !TCT ctr-ers repfes.*--is s 1 essir.an 5 : :f i^te lc!s read o-w.sd cr ica sc-'pTe.'i; c^ned, reipez'uveiy rfcwe --a!, line 39. G'aRd Tola' snculs se cc—p etea CREDITS TO ReSERVC OEBrrS TO RESERVE O.nr-g a-e rear D-r.r Depreciation and Class Miles of road Investments amortization of Line {See Narre of company used (See Ins. 4) in property' defense projects Line No. ins. 2) (whole number) (See Ins. S) (See Ins. 6) No. (a) (c) (c) (d) (e) 1 R Kansas City Southern Ra'fway Ccmpany 2.681 2,766.237 799.774 1 2 732 • 733 • 735 Improvements en Leased Properly - 60.844 21.942 2 3 3 4 4 S 5 6 6 7 - 7 a 8 9 9 10 10 If 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 TOTAL 2.661 2.827.031 821.716 31 Railroad Annual Report R-1 I I Roas Inilals KCSR Year 2CC7 352B. INVESTMENT IN RAILWAY PROPERTY USED IN TRANSPORTATION SERVICE - BY PROPERTY ACCOUNTS ;DcBars ~.i Tnojssnas! I 1 in co urr.ns ft, TrOuC.-. (ej g.-/e ty pr.rr.ar/ acccurls. •„-« amcu.-.t of .ni.esl'ne.-i a! ir.e c.ose c! :ne year .n prcperi/ at respancer; ana eacfi gn>Lp of c 353 at corr.panies and properties 2 Tre airsLP-K far resp;n:«-i arss Isr ea:n gro-? cr c.ass sf ccmpanes are! prcpert.cs en ,r.e 44 ,-iere.n, sno Ja coTespor.d .v.lh ISe amouras fcr «3C.n class cf ccmpa-./ ar, J proce-iiss she AR ,n schedul* 352A Carl n.ing records snaJ be rnan-lned Dy respondent of tn* primary property accounts se^araieiy Jcr aacn car-pan/ srp-cpeTf .P.OJCB: -n ire schedule 3 Hepcn on lii:e 25 grncunls reorasorUf.g cac ta:.za(-cn of ren'ais Icr leased prcperty based en 6 percent per y«ar vihere property is not cassiCeO I cy a=c;ums cy ten :arr e- ov.-e'-s or v.t-ers ;os; cr pr;p»r,y teaseo Iro.r. oihe' can ers is r,c( sice.'.ainarle. iCen:i!y ncn-tarner ov.-ners ano brar.y exc.a r an page 37 rtKrn; I Ra.rcao Annual Repot R-1 I I 44 Road Initials. KCSR Year 2007 INSTRUCTIONS CONCERNING RETURNS TO BE MADE IN SCHEDULE 410 Cross Checks Schedule 410 Schedule 210 Line 620. column (h) Line 14. column (b) Line 620. column (f) Line 14. column (d) Line 620. column (g) Line 14. column (e) Schedule 412 Lines 136 thru 138 column (f) Line 29, column (b) Lines 118 thru 123. and 130 thru 135 column (0 Line 29. column (c) Schedule 414 Line 231. column (f) bne 19. columns (b) thru (d) Line 230. column (0 Line 19, columns (a) thru (g) Schedule 415 Lines 207.208.211.212. column (0 Lines 5,38. column (0 Lines 226.227. column (f) Lines 24,39. column (f) Lines 311.312.315, 316, column (f) Lines 32. 35. 36, 37. 40.41. column (f) and Schedule 414 Minus line 24, columns (b) thru (d) plus line 24. columns (e) thru (g) Schedule 415 Line 213. column (f) Lines 5.38, columns (c) and (d) Line 232, column (f) Lines 24,39, columns (c) and (d) Line 317. column (f) Lines 32.35.36.37.40,41. columns (c) and (d) Lines 202, 203.216. column (f) • equal to or greater than, Lines 5,38, column (b) but variance cannot exceed line 216. column {Q Lines 221.222.235. column (0 - equal to or greater than, Lines 24.39, column (b) but variance cannot exceed line 235. column (f) Lines 302 thru 307 and 320. column (f) - equal to or Lines 32.35.36.37,40, 41. column (b) greater than, but variance cannot exceed line 320. column (0 Schedule 417 Line 507, column (f) Line 1, column (j) Line 508. column (0 Line 2. column (j) Line 509. column (f) Line 3. column (j) Line 510, column (f) Line 4, column (j) Line 511. column (0 Line 5, column (j) Line 512. column (f) Line 8, column (j) Line 513. column (f) Line 7, column (j) Line 514. column (f) Line 8. column Q) Line 515. column (f) Line 9. column (j) Line 516. column (f) Line 10. column (j) Line 517. column (Q Line 11. column (j) Schedule 450 Schedule 210 Line 4, column b Line 47, column b Railroad Annual Report R-1 Read l-..ta s r-ar Z337 45 Ii s. s 8 GO LLJ CO 1 * a S S 8 = 3 O 'I 1 S UJ t i Q. O I £ 5 I! I!1 ll 11 | i l e: { P I s cc 1 ll expens e j I t i I NJIIH : o l rail w | 4 wit h i tinf l u a : g A V AN D S I HU C 1 UHt AOMIN f S I RATIO N R Railroad Anrua! Re;o.", 1-1 Road Initials KCSR Year 2007 3 C o o 111 K O O i II5 Ii s fi I Railroad Annual Report R-1 Road ir:ia!s KCSR ves: 2CD7 47 in g « o o CM CO •* |T. o "- co tn o Cw g jr (£| g CO o ^ N CO T in 10 35 to s n o a 5 0 8 8S CM tM w •M •M CM s " 1 1 1 • ev «- en ' 1 w i t ro i i n • o s § n S S & a 3 D g c T- i _ •J i a in O w- T- ,•5 ,j* •q- T^- lO to CO C! Jl ro *_ <*> l— r> CO '* o> to t3- s *~* 1 z o ^ 1 1 1 1 1 •- • • CO ' i CO i • § b 3 1 CO 3 3 g 3 a 3 D 1 S M 5 CO 1J S b i 0 *• "- n in CO T- to to £ *- -"' n •° 3|S- ' <8 *N ,1 -S s8.=- • 1 • • en S s s § 5 CO 1 1 D § IO o s . S uo to to 1 5 1 11I11 Z 111 11 11 c 1 ^ 1 * 1 1 g O t 1 1 1 1 • • «- • i CO • CM i i • • m W S |S a S UJ N CO IN i i r? is i CO s ? S T— T- ifl to 31 , , , , ^. o , 2 i- , CO O p s •3 - S s g < s 3 5 fS lff a: | CM 5||s Z 1 11 El z 11 1111 1 1Z Z Z z i1Z S I11 o its • • • 1 • • V 0 CO • 1_J » s s " CO 1 5 * — z z Z z 2f z Z Z z z z 2: z Z z z z Z Z z z z Z ^ o 0 * i \ ? i s. & if i V ll ? £ q g 1I a ? i (a ) c 1 a £ f a c l I j expens e ac | j •I l : j 1 ! Nam e o ' railwa y i I 1 c c 1 j j 4 i -i t .j 1 u : ] j i 0 i I"< i I u ! u. f. ; I I ( I « I i j 1 j TOTA L WA Y AN D STRUCT l i 1 i ] Dismanllin o Retire d Roa Pr Othe i Rani s - [O f dil l Switc h Join t 1-aciW v - Debi Swtlchi n Join t facilit y - Dobi l Dina r Join t Facilit y - [Cicdil ] Othe r Diamnntlin q Retire d Roa Pr o Disirwnllini i Reine d Rou Pi u Leas e Rental: . • [Credit ) Othe r Rent a - Debi t Join t Facilit y • [Credit ] Join t Faciit v • [Crcdil l Switc h Adniiniuiatio n Eauiomcn t Damage d Othv r C]isualik) b an d Insurant . Othe r Rents - [Credit ] Join t Facilit y • Debi Re-pan s Bille d t o Otlicr - [Or e Ci 6 c u. Joln l Facilit y Rou t - Debi KEf'Al K AN O MAINILNANCL - 1 5 LOCOMOTIVE S EQUIPMLN T y1 10 0) 0 - CM CO T rf» 12 f- a a g •t- r> o T- CM CO t •« to go S r "^ (O So CO CO O «- CM 5 2 i v> UJ Q. 81 P .5 UJ a «'.s'ls a. S o ill 1 ae o o i E S Re t T an d ! Railroad Annual Report R-t Yaar 20Q7 g „ n •» LO a r» « v) 0 Cs CM n y 01 0 CM •n « « 19 ^ ac Cl a cs 5 "~ S - r? P § r o - -5 ffj P5 r? **! -j "» n •*> "> •V * ^' •e- T * " ' ' ' s: • 1 • ao o • • n • • - S 3 s J g S 8 S 12 = J § ra 5 g i S S 2 § ? CM M SJ 0 >( 2 S t 1 ^ " " C _» ¥ td v 0 £ z 1 1 1 1 - 1 • n 0 en • i/l in ro 3 rj § s i S c 5 s 5 -M r> S 5 ^ 1 a 1 is S (N o •^ CM in * a c 8 "" 5 CO s 8f s *™ H|- = lil en 2 ir> CM C § § S- i 5 S a c in S | | 1 1 ||1 £ 111 1 3 1 C g ^- fj —• •— CT 00 JK t 1 i S S «• eC - n Cli r\" s CM § 3 1 I 1 1 I1 UJ ^ a1 *' i o fc • 1 1 1 1 oj || « S 5! S f a s i§i s S 2 £ CO S S t— ||J I11115 11 1 1z Iz i 3 § 0 ~ n at a n 1 CM CO N 83(ll! M pu r 3 V sr>utT(P s s s Ul c CM s r. iSI S3 (4 ) F- « u: N (C 1 en en i IiIz" 1111 1 1111 C3 S s 5 f •n i f •s 1 = a (a ) t j « cxpcnt d :icc.n i ] r « j Nam e n l railw:i y o p s ] i I in i ! h- i 5 2 ( ( < < { i i i \ ! C t (. ( 3 i i { L_ 1 3 j ( " TOTA L EOUIPMFN T i 1 1 _! TOTA L OTHE R EQUIPMEN T I i j TOTA t THA W OPERATION S Repair s nillor t o OUwi r - |CrwM | Jom t f aciht y Ren • |Cr«d«l [ rjllw u Kunl i - IJuln l Olho r Runt s • [Ciudit j Depreciatio n Tiai n Craw s Oocmlln p Signal s an d Intcriocker Hmhwa y Crossin g Prolcclio n Trai n Inspectio an d Lubricatio r-ledri c Powe r Purcrwun l o Piod u Othe r Casualtie s an d Insuranc e Join t Facilit y - Dcpi l AdmlnlGtratio n Locomotiv e Fue l Clcann a Wrack s Administratio n Jom i Facilit y KPI K • Debi t Vi V JOMI I Facilit y • ICredll l TRAI N OPERATION S d t! S YAR D OPLKA 1 ION S OIIII. K [ Oull-'M t N l • Cunlilluii d TRANSPORTATIO N Ss au U 0 rt ^ « Ratiroad A.int.al Recon R-1 50 Road Initials: KCSR Year: 2007 I IN S 8 Ui u CD 1C UJ 4 c> ID OT 2 BUJ 111 It; EL O s in i i I I § i! e o f r J exp e CO s 3 3 s 0 c5o 5 g •o i n 5 lin g I ? i n g an d i ng e ^ f II Si' ui 3 S Raaroad Annual Report R-1 I Rcadln/.ais KC3R Year 2007 51 CO o o r- c\ •ft TT (O ^_ CO «— CN. CO V .-> o K. en o r- CM •v, ^ m to N. co a> £ a ^ § CM I E S S 5 SJ S S ft 3 a Si S iS § s § c g 10 0 <0 O 10 o CO ID O CO CO 1 1 (O .C • >. 3 1 «- i .0 o N N V CM O g 1 c a S s s S ft o to CO CM CO a §; io c n 5 1 CM" *•" "- en cs CO !*-" •^' 6 CO o m o 3 „ * ^ CM ^S g g r* I r- I 1 U g S O VI S. Z I 1 1 • 1 - ' c, o o n N f. M 3 in § 1 • 1 • ^ ^r O CM i (a ) I 4 c I !• j c cr I expens e acco u i < i 7 U '} Nrim c o f railwa y p \ ^ i ^ 2 S1I|.1UD( ] ODUIJ J | t | < •j y •5 \ C ! c < c I ] 1™ 1 1 >- c j ll u j M j c c \ | j ] j i Officer s - Genera l AdminiMriiiio n Adniinisirfitiu n cy c Casualtie s an d Insuranc e O ADMINISTRATIVE : SUPPOR T OPh l : GLNDcA l ANOAnMINISTRATIV r 1 Communication s System Operati o 1 Casualtie s an d Insuranc e 1 Join t Hicilit y - Ocln l 1 Join t l acilit y • [Credi M 1 TOTA I ADMINISTRATIV E SUPP < 1 AccouniinQ . Allditin q an d Financ e 1 MaruKiPrnc m Service s an d Dat a P n | Iniriumria l Develoninen 1 Publi c Relation s an d Advertisin g 1 Researc h an d Developmen t 1 Prooort v Tnxfl * | 10FAI . CARRIE R OPCRA 1 IN G u 0 I P I (J U CO O) a r- t\ CO in co P •» 00 a v- CM to < I I 52 Road Initials: KCSR Year: 2C07 412. WAY AND STRUCTURES (Dollars in Thousands) l Report fra:gM expenses only 2 The total depreciation expense reported in column (b). line 29. should balance to the sum of the depravation expense reported in schedule 410, column (0 lines 135. 137 and 138. 3. Repon n column (c> (he lease/rentals for the various property categcnes of Way and Structures The tola) net lease/rental reported in column (c), line 29 should balance the net amount reported in schedule 4 10. column (1), lines 118 through 123. plus lines 130 through 135. If an entire road or segment of track is leased and if fho actual breakdown of lease/rentals by property categories is not known, apportion the lease/rentals based on tne percentage of the categories depreciation bases to the depreciation bases for all categories of depreciable leased property. Use schedule 352B of this report for ootainmg the depreciation bases of the categories of leased property 4. Amortization adjustment of each road property type whicn is included in column (b) snail be repeated in column (d) as a debit or credit to the appropriate line item, the net adjustment on line 29 shall equal the adjustment reported on line 29 of schedule 335. 5 Report on line 28 all other lease rentals not apportioned to any category listed on lines t - 27. 6 Line 11. Account 18. shoi/d not include computer and data processing equipment reported on line 37 of schedule 415. Amortization Line Cross Property Category Depreciation Lease/Rentals adjustment Line No. Check account (net) dunng year No (a) (b) to (d) 1 2 Land for transportation purposes N/A 89 NONE 1 2 3 Grading 1.620 234 2 3 4 Other right-of-way expenditures 9 . 3 4 5 Tunnels and subways 5 . 4 5 6 Bndges. trestles and culverts 2.810 . 5 6 7 Elevated sbuctures . . 6 7 8 Ties 14.683 616 7 8 9 Rail and other track material 14.695 767 8 9 11 Ballast 4.399 217 9 10 13 Fences, snow sheds and signs 16 . 10 11 16 Station and office buildings 1.081 (328) 11 12 17 Roadway buildings 6 . 12 13 18 Water stations 3 . 13 14 19 Fuel stations 273 . 14 15 20 Shops and engmehouses 518 75 15 16 22 Storage warehouses . . 13 17 23 Wharves and docks (105) . 17 18 24 Coal and ore wharves . . 18 19 25 TOFC/COFC terminals 342 . 19 20 26 Communications systems ' 544 . 20 21 27 Signals and mtertockers 1.518 . 21 22 29 Power plants . - 22 23 31 Power transmission systems 16 . 23 24 35 Miscellaneous structures 3 . 24 25 37 Roadway machines (432) 164 25 28 39 Public improvements: construction 458 . 26 27 45 Power plant machines 3 . 27 28 .. Other lease'rcntals N/A . N/A 28 29 TOTAL 42.465 1.834 . 29 Railroad Annual Report R-1 I Rcac Initials KCSR Year 2:c? 53 CA R TYPE S (/ d I 1 yp c o f equipmen t 1 ; G i 5 r 414 . RENT S FO R I i •c C t i e ~i _I 1 1 j I OTHE R FREIGHT-CARRYIN G E C I i £ _i U ; L_ T J J ( j ; J c j ( ! C GRAN D TOTA L (LINE S 1 9 AN 24 ) i 1 TOTA L FREIGH T TRAI N CAR S Box-Plai n 4 0 Fuo t Refnaerate d Trailer s Refnnorator-Mecrtanica l Fla t TOFC/COF C Dai-Genera l Servic e Flat-Othe r Gondolrt-Pla m I j Honrwr-Opc n Top-Spcoa l Servic e d »- e Aut o Rack s infiiir j o f Scririliili ' 410 . 41 4 an d 5 "Otlio r E q ibi s i n thi sclwdul e wil l no t balanc 1 0 lino 3 s amount receivabl e an d payabl fo r deujM-lr ; cig m expense s onl y I i lin o supportin g schedul e rcni.i l inlormulio n b y in d equipmen t (reportin g lo r lease < nc s 23 1 (credits ) an d Q (dcb>ts Traile r <«i» l < i rolmnn s (b ) dn d (c rent.il! , lo r private-lin e car ; i column s (c) . (d) , (f ) nn d (g rental lo r railroa < iasi s pe r dicm) . Includ e railroa d owne pu die n ucrKniica l rle&icjnaiion s fo r cad i ta typ e ar si n 1 Box-Plai n 5 0 foo t an d Loruiu r 1 Fla t Multi-Leve l \ Tank-Unde r 22.00 0 Gallon s \ Othe r Trailer s 1 Refnoerale d Container s I Othe r Cojilainer s 1 TOTA L TRAILER S AN D CONTAINER • j||||j||||g ofj _ tv. ,. T- ,, r EN CO in o «— n in NOTES AND REMARKS THIS PAGE INTENTIONALLY LEFT BLANK Railroad Annual Report R-1 :s3 .n 1 a s rfCSR Ys3-:2:07 55 GENERAL INSTRUCTIONS CONCERNING RETURNS TO BE MADE IN SCHEDULE 415 Re::.". F-* 5..-: : a/ 1y;e ;• ec..c~el-i s . 'o'.r 'e 3'-"S '5 '"« !L,r-c'-;r,5 (53 a-,es a- rrata- a.s, ::o-s. step- «s Le J a."d Vtncants. -. ces 3-i jsr^ia.; Sc'-ei. e4:i.c:'«j-!n(ci *, :jScieeJs4!0 is (a) Licorra-iv-s. 're 5 c .s ir» 33 :=.--:3fe: :o !'.e 3." ci Sc :0. nes 2'2. 2C3 pu 2^8 iexcl-3 rg -wees resarsj Os no! re:crt :r. £5, ;-e-l ~ar-3;sd ' yn S;-?;,'e 41C ine 234 H 1 F.-e;-tC=rs .re 3J::rrpare: :3i-est.-i :' 3c e3_s-ilC.Ties221 i22plJSiJ5{a»c. i,3:-g.-.-5cl(re;a'si DD nol reicri .1 Scieou e 'tis. -e"J Cu crsc^ * 4 1C !."« 22i (c; S'-mcf hg-Mf Es'-wsni -«32, FbXirgE&iiprvi f'n»3sj, Passsnjif aniOintr R«,s-~e Hsu smenut-,9 35) Eqi.,p-eil lire 3ri. !.iac^.-e-y O^ier Eq. pr-er! (:«e <0|. P.JS ft^r* 3f ; O:--er Nors-Rmen-a E;a PT.«IL (!ir,j 41 cc.TsareJ w Sc-ei.le 410. ** sum cf ires 302 '^rc.gn 337 .rc..3,ve p-sl'.ea20(*xc.jC".s .vrecx rapa rs) C;.'£:r«?crt.nSclw:l..e4;5 C. Ira H:l? U-3S :-;-5. 215 an '*>« a£ocai cr. c- !,-j,gfi ur re; 3.- «<;»-» recc iab-e c* Scr.e;.ne s15 o; car v - scccrdanc; ,v,in )tisi.-i.c'.cr, 2-21. F'igrt '/am repair c«!.Rg 45CFR12-:1 : a: a- eipe'.s* 'c- »:i : asi c' ei-jcn-a-.: 3/ car lyce s.ii.i 05 iep:rt?d ..-. co'u-rvs (c) and (a) Far i-R;ro«:x«ni5 cr leased property, A;:a-.n:s 732 I Je-ais IB Sshetl. *» 340 3r.: 3*2 ci cnirges -jpcned cr cci.mns (;| an£ iii v> I balance ;o ScrM'.le 4 :p. citunrn ((), as (a:o-.vi (a) L:cs~c:.ss. ,ne5piuSl"e3S:c-;3'adlB£cf1s to) rre g-: Cars I re 24 p *s ire 35 corcara: 10 Sc.i9C.le 415. ,i-e 233 tc; SU.T. ;f ri S'M, £31. p-rer: n.-« 22) .r::awg E;u p.T.s-,1 ; n» 35;. Passeige' »ni Oinw Rs'.ari.? Equ.prrent (I r* 28). Cmp-'^r and Data Frocess."B EQ. :rrar,i (ii-e 37) Mach ne-^-Oi.-e' E?.:;ra,-i (Sne *0): arc '.Vc» a-xl Oltie- Kan-Rave-^e Equ p"ieni (I ne 41 ] ccTp jre4 :: Sc.ieoule 410. lina 317 5 *mct la: OR aSi-iirre"! c! each eai prns-t !y:B ari;h ^ f.t .ceo ..- col.mn (ci s-a i a* fepsrted ,n cc1 jrn (e) 3i a deBU or creii.! to the apprcpras ine 'lei; !n« ->• arF-si-v.erv. ci Ine 4} s.-a . ec;-ja v>e e^uiETieni ar-cri'zaun acjusimen! app .caole ie e^.'p'ns.i: ,55: .n fre.gr! s4rv.c> mciiKHO .n 'irj 33. «a UTB (cj. o LeaseiR^nls s -sciMed - cs'-.nv; v) s.-:J: saiarce » ccl.^-i jf) cf Schea. « 411 as fa S'.vi (a) l.c:3.'r:: -•es i".e 5 :us 'nj 38cc-pa-«d A.inSctied-i«<10.linei207 2:3 21' 3^212 ,S.. F-e-jh; Ca's. I nj 2- p us 13 19 c=,-":3r«d w -Ji S;.".e*-'e 410. Ires 226 p'us 22? (nc» thai S=r>ed./e 41C. ! RBI 230 ana 231, i-e repcned in Scheme 414 3PQ are ra: 1C be i.-. {c) Sum a! Lease 'Ss"-.a s I if Al O!-.ei Siu.pme.it. linn 32 35. 33, 37. 4C anc 4 1 w I talarce io Sches-'e 410. Lnes 311. 312, 315 and 31S. ejtepl for the .nLe':nanc.e renal ei t.-ai'e's and ccntairtrs nr-cri >s reporter <-. Sencdute 4 !4 T^re'cre, ts:h Sc.ieij:« 414 a.-d 415 should be UM3 >vnen taaidng Lease Ren:a,j Cirer Eqj'prr.e.-.l to ScXea.'e 410 Da nsi tepan ji Schedule 4'S Ira Tra ler ana Ccnia .-.«• renta's reporsj Hi Schedule 414 7 Ir.-vesir-en: tats Sy l>pes cf ea> prnen' ina-l b« repcre j A cc.jT-.rj [5) a~3 (h) and 3-Cwl9 no: rc!>.ds ir>« cos: o' Equipment Used 3ut Nat O^ned »nei »e .enis "if-e'c-e a-e nc iKsd n r.-e :ei: (c- cqi. pn-eil a-d Acso.n- Kcs 31-21-S3. 3I-J2-0;. 31-23-C3. 35-2: -CO. 35-22-CO and 35-23-CC I! sfcuid .-c.si y\s Ccs: c' Eq'.^rnem O,\-. Frc^.ly Usc-J B.I 'is: O.i'33 s-o.'O a'sc ce nc~iil wrer -fte .'en- .s i-rt.ce: ii A;:3>.-.: hcs 3J-:2-CO. j:-'3-:0. 31-22-33 and 31-23-CO.mci.sive. Tie 5 3-3 'o'o. •;! »:n eq- p-'er.i ac::.rn*m BCCCi,"! '.olals cf cs _Trs lg) a-d (nj, cf sc!-ed. e 4 15 3 Acri,-;i.l3ie3 cep-eca' s- 'cr sac- :ass c' e; j-stse-.: sna I be -e::rted .-> C5.'um.-» «| aid (i!- The ;ra-d lota' of each equpnwii reserve msaj* .n co.urtvi 13) Scr-e-Jj.1! 33S. sra:. eq-^a 'Re corr: rted a^gieja'.e Isiai a:: jr.. aad de=re?al o-< !cr 24 * TOTAL FREIGHT TRAIN CARS 11,651 1.511 507 - 24 OTHER EQUIPMENT-REVENUE FREIGHT HIGHWAY EQUIPMENT 25 Refrigerated Tracers 25 23 Other Trailers 1,066 . . 26 27 Refngeraled Containers . . . 27 28 Other Containers . . . 28 29 Bog.'es . . . 29 30 Chassis . . . 30 31 Other Highway Equipment (Freight) . . . 31 32 ' TOTAL HIGHWAY EQUIPMENT 1,066 - - . 32 FLOATING EQUIPMENT-REVENUE SERVICE B . . 33 Marine Line-Haul 33 34 Local Marine . . . 34 35 • TOTAL FLOATING EQUIPMENT - - . . 35 OTHER EQUIPMENT 36 Passenger and Other Revenue Equipment m (Freight Portion) 36 37 • Computer Systems and Word Processing Equip. 369 10.033 . 37 38 • Machinery-Locomotives 1 . 24 . 38 39 * Machinery-Freight Cars 2 - 24 . 39 40 - Machinery-Otner Equipment 3 . 7 . 40 41 * Work and Other Non-Revenue Equipment 3,258 517 . 41 42 TOTAL OTHER EQUIPMENT 3,627 10,605 - - 42 43 TOTAL ALL EQUIPMENT [FREIGHT PORTION) 56,111 16,103 507 . 43 t Tno 0312 to be (e;crtafl en Ine 38 m column (3) it Uie amci.nl reponua .n Sciu&le 4 10. column [[). 1 r.9 203. reduced By me adocaSle portion of Ine 215. 2 The daia to Co lessnae ca line 39 In ccijmn (b)°S ine aiioi.ni reported in Schedule -10. coiuntn (1). dne 222.reduce do / Ine aaocaSie portion ol '-mt 235 3 Tno data to ce repanea en ute 40 n ccljrji (01 it B» amount reported in Schedule 410, ctfurnn (!), Dnes 302 evsugri 308. reduced by Ine aEocabte canon ol l,ne 32C Railroad Annual Report R-1 Read ir.itia's „ . * 27,333 9.755 (23) 1 2 3.135 85237 . (754) . 2 3 . - - . . 3 4 - - - . - 4 5 33.523 94S93 . (337) . 5 6 6 7 7.607 9,621 - 4.336 . 7 3 5,705 50.721 361 27.430 300 8 9 1.S92 . 826 . 9 10 2,232 179 10.111 103 2.350 10 '.1 13693 23.622 1,212 11,253 1,212 11 12 . 1.442 - 436 . 12 13 38C 201 . 120 . 13 14 . . . . . U :s . . . - - 15 18 . 15 . 1 . 16 17 . 3 . 3 . 17 18 - 124 - 123 . 18 19 1.521 7,934 . 4.598 - 19 2C 4,845 2.133 - 1,738 . 20 21 . 30 . 22 . 21 22 1.9D2 . . . . 22 23 . . . . . 23 24 3B.Q35 98117 11, 6B4 51,494 4.362 24 25 25 26 1,171 . - - . 26 27 . . . . . 27 23 . . - . . 28 29 . . . . . 29 30 . . . . . 30 31 . - - . - 31 32 1,171 - - - - 32 33 . . . . . 33 34 . . - - . 34 35 - . - . - 35 36 38 37 1,836 91863 . 35.S88 . 37 33 . 3.S94 . 2931 . 33 39 . 4022 . 3,023 . 33 40 . 1.067 . SC4 . 40 41 ^.858 25.044 . 13,625 . 41 42 3,694 126.713 - 56.375 - 42 43 73,423 31S.326 11634 107.033 4.362 43 • T>e :•£ !J Si -esc-ed an : in 39. 23 ma 41 r. :: irr.r.s ,g) »"d (N 3 U-t iv.er.Tieil lecouJso n o-optrty 4ccc^rj «, a licaled IP .ccaroti-»i. fct 3h: Cars ana C'.-ar Equ'siieri 2 T-e c * The da!i to be reported on ling 3fl In column (b) Is ilw amount reported In Schedule 410, column (f), line 203, reduced by the allocable portion of line 216. 2 The data lo ce reported an Ing 39 in cataifa (b) S lha arRCunl reponad in Schedulo 410. cciiimn (f). line 222. reduced by Die aCccable portion of line 235. 3 Tne C3!a » to ropuiea en >,ne *0 in c:!unn (C) t Lie amount reported n Schedule 410, column (f). Lies 302 thrcugn 305. raduced by Uie aaocabta pcrtion al ins 320 Railroad Annual Report R-1 I I aoa'J Inr-als nCSR Year 2CJ7 S7B 415. SUPPORTING SCHEDULE - EQUIPMENT IMPROVEMENTS ON LEASED PROPERTY - Concluded (Dc-lars in Treasancs) nveslrreni ca^e as of 12.31 AccufifeaKd desreoaUcn as cf 12-31 I Lne Cross Leasa anJ re'its i C.vr.e-5 Cao laired Owned Caprj'izM Line Ho Cnack. (ne:> lease lease No :H fat .1"* (') W I 1 •W^E NONE eca NONE 226 1 2 3: 793 13530 2 3 - - - 3 4 - - 4 I 5 - - 32.407 - 13.308 5 6 . - 6 7 - . 7 6 - - 8 I 9 . - 9 •o - - 10 51 - . tl 12 - - 12 I !3 - - 13 -.4 . - 14 15 - . 15 18 435 431 ie 17 - - 17 I . . 18 18 19 2 2 19 20 3.651 945 20 21 - - 21 I 22 - . 22 23 - - 23 I 24 - - 4.C38 - 1.378 24 25 - - 25 25 - . 26 27 - - 27 28 - - 23 I 29 - - 29 3-3 - - 30 31 - - 31 I 32 - • - - - 32 33 - - 33 34 - - 34 I 35 - - - . - 35 36 . . 3d 37 17 17 37 38 - - 33 I 3S - - 39 40 - • 40 41 412 396 41 I 42 - - 429 - 413 42 43 . _ 35.924 . 15,599 43 1 T»* jaa is ;e -epcrisa on -.93 Ji. 39 ara W -n ic'D-ms is, 313 (h) ,* ihg ww«is'ii»i| recorded i P'Oftn/ nswu.il «. n'ccaud !o ~ocorrcl»«. Fra>;nt Cari ara Cire: 6;,-o.T«ii I 2 The i;:tec.3'J3i •? ;e -eii-Jei 01 inn 33. 39 inn ii5 n cilu.v (:| a :a'CLta;ea oy T.uif i rg L'a r,r«u-i«iiiri ta 58 Roadlni:al3 KCSR Yaar 2C07 I 14 I I I I i s I a: I is u g WfE OS I Z n 1 I (A ll I 0 CM I S I I grand ! fc)»t q (d ) * ( g I §2 II 8 £ £ Railroad Annual Report R-1 I I I 1 | R jad .Ti: a!s KCSR Year 2QOT 59 NOTES AND REMARKS 1 1 THIS PAGE INTENTIONALLY LEFT BLANK 1 1 1 1 1 1 1 1 1 1 1 1 H Ra '.road Arnual Report R-l 1 1 60 Road Initials: KCSR Year. 2007 §6 IT I ! f*i II 3 f^ "" ^ I * !li Sc S -S ° ^ » H i§ o — C OEA'^ fl) ^ —= 2 iil-ai II||I | l$ | II \ 1| S 5 2 I ft 5s 5 g O 5) '§ G> U n Q •*! 'Sw ^- I O II ! CL s of s U> as^ssom-i -ss Ee II 1 S 5 § «" g S1" -^ 5 -o Ui 11 ^ I is 11,|| rfill 0 w Ul s 0 •9 -fI .o5 so '•50 '.= O Tl ^ W " SI &|1 D. - CO §|l ll.S ^ ||= ||| | g; tl-§ If «'f llri-lfs g *iv!l"lll|H-* pro B >\ ^ "He s*~"s|3 f^*: i i|sit'i-ii 'i ?i o |||g||F| «|||-i | ||{fi|frii|if|fi Railroad Ainual Report R-1 Road .n.tials KCSR Ywr z;C7 61 418. SUPPORTING SCHEDULE - CAPITAL LEASES ..TSL-uCtiinj. Tr_s s^.edUe A I. shew LIB i.-.vestmen1. ir cs? allies leases n read and eqk.pirer; ay p.vuar, account Co jnrt •ai ;ci-,av aeccurt rii.Tber ara lie 'or .vhiCf- capital lease airc.ris are ,"i;u:83 Martin ifll 9iB toa: invsstrerl in ttat pninar, a:cOwnt ';) :he .tvesl-vent m capital leases 3! ;re end ol r.s year ;dj the Cuire.-it year amarazabcn jei the a:cj.-!uia:ea arror,i3i:o.-i relatng :; irte leased properjes. (Dollars in Tr.cjsar.a?; Capi'jl Leases LT« P'-.T-ar/A;cc.riMo 1 TcSJ rveslnenl IftvesinisnL Ci^reasYaar Acci,mulalea Lire No ~ae atEiaofYea' si End cf rear Amcrtzalon Amcrt zatcn Mo (»t C=» «=l d( (ej 1 53 • FieighlCa-v 113.839 V..M4 507 4.362 1 2 2 3 3 4 4 5 5 6 S 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 U •5 15 15 18 17 17 Rjiircsd Annual Report P.-1 82 Road Initials: KCSR Year: 2007 NOTES AND REMARKS THIS PAGE INTENTIONALLY LEFT BLANK Railroad Annual Report R-1 I I Road .r iials: KCSR Year 2007 63 450. ANALYSIS OF TAXES lOcl'an n Thcjsands; I A Fa i.vay Taxes L.T18 Cress Line fia Cherf Kind 3t 31 Amci.nt No I (a/ W • O^sr ir-an 'j S G^^crr.-neni Tues 9,283 1 u S Gavernnerl Taxes f-.c:mfl Taxes 2 Ncnnal fax ar.j Surtax 2 I 3 Excess P.'oto . 3 •1 Total • incoire Ta Nsl credits I LJW Begtinrg of year (charges) 'or End if year Line NO Pa.1.cuafs balance cjfrenl year Adjuslrrenis baia.-ce No (a! (a) (c) W 1 Ac:s'eralea Depiac-aMR, Sec 167 IR C . I G'J del ne Lf.ei Puisjan: la Rev Proc 62-21 476,258 < 10,578) 1 2 Acce'enied AmorcziLcn c'Facinl'es.Set: 163 1 R C . 2 3 Acce'ented Amcft'jrat on o: RoCir.j) Stock. Sec. tt« 1 R C . . 3 4 Arr_jnijaaon o' F 1S TOTALS •!32,e&5 (21.575) . (54.400) 19 I Ra.;.'oaa Arn.al RepOT R 1 I I 64 Road Initials: KCSR Year. 2007 450. ANALYSIS OF TAXES • Concluded (Dollars in Thousands) Fooiroies t If now-throjgh ireltiod was elected, indicate net decrease (or increase) in tax accrual because of investment tax credit II deferral method far investment tax credit was elected (11 Indicate amount of credit utilized as a reduction of lax liability for current year (2) Deduct amojnt of current year's credit applied so reduction of tax liability but de'sned for accounting purposes (3) Balance cf current year's credi; used to reduce current year's tax accrual (4) Add amount of prior year's deferred credits being amortized to renuce current year's tax accrual (5) Total decrease in current year's !ax accrual resulting Itom use of investment iax credits 2 Estimated amount of future earrings .vhlch can be realized before paying Federal income taxes because of unused and available net operating loss carryover en January I of the year following that for which the report is made Railroad Annual Report R-t Read :r.i;.a:s KCSR Year 2007 65 460. ITEMS IN SELECTED INCOME AND RETAINED EARNINGS ACCOUNTS FOR THE YEAR (CoJa-'s .r. TncLSands) Gi .e a cue! desef'pl en fen sl! liens, resird-ess cf arojnt. inc.-.ded d jn.ig 1ha >esr in Accounts 555, Unusual ar Ir.freqjenl Ke.rs, 560. Income or Loss frcm Operations ol Oisconlirued Sejr-eiis. 5S2. Cain at Less on D.sposa! of Cisccns'nued Seg-nerrts. 570. Extraordinary Items. 5SO. income Taxes on Extrao-asrary liems 592. Curru av.e Effect cf Cnanges ,n Ac:ouiLnj Pi r.c.ples, 5C3, Appropriations Released; 606. Clher Cred ts to Rela ned Earnings. SIS, 0:rer Deans 'a Rela nea earn r;3. £23, Appro ?rra! ons .'o: Sirr.ng arj 0-r.er ? jrds, ar,d 521. Apprspr;a;iors for other Puposas. If apprcpiialions released ;e^fr:l app'opr.a! ens p'ovxlcc di.rr.g the /ear, each account stcjid rci be repsrcd. For Accajr-ts 5^9, Misc&iardsus jncarre, ana 55), Miscellaneous Income Charges, if tne total in e.ir.er ac:ojrt exceeds 10% ol net income before e/'.racrti.-ary ileois, descr be Ins thrai! larges: Je-ns -n :re ac:o^r: £".ct any outer items r. e Line Account lie-n Debits Credits Lne Wa Wo Ma ;a> It; (C) ld> 1 519 Mis^e'ianeous Inccrre N.'A 5.504 1 2 551 Mis:e.taneous l:iccn-e Charges 205 N/A 2 3 555 ifrusij3l or In.'requen: lle'ns - . 3 4 560 Ooerat-ons cf Diason! -v*e MEMORANDA RELATING TO SELECTED INCOME AND RETAINED EARNINGS ACCOUNTS L,ne 1 • Account 5 1 3 Footnaies. 5013 Gam on sa!e of prcpert.es and oil v, el!s •4S3 RoyaU'es or. o.l v,-slis 12) Miscellaneous Line 2 • A;;3L.r.l 551 Fcrjrotes 2:3 Ac-;ji5ton resear^i.'consiiliinj on GoLde.i Dorrs project 44 Miscellaneous 66 Road Initials KCSR Year 2007 501. GUARANTIES AND SURETYSHIPS (Dollars In Thousands) 1 If me respondent was under obligation as guarantor cr surety for tne performance by any other corporation or other association of any agreement or oWigat'on. show the particulars of each contract of guaranty or suretyship in effect at the close of the year or entered into and expired during the year This inquiry does not cover the case of ordinary commercial paper maturing on demand or not later than 2 years after the date of issue Items of less than $50,000 may be shown as one total. Sole or joint Line Names of all parties principally Description Amount of contingent contingent Line No and primarily liable liability liability No. (a) (b) (c) W 1 Kansas City Southern Gateway Eastern guarantees pnncipal and interest S 2.000.000 Joint and Several 1 2 Gateway Eastern Railway Company obligations under the KCSR 7.5% senior notes 2 3 Pabtex GP. LLC 3 4 Pablsx i. LP 4 5 Sis Bulk Holding. Inc 5 6 Southern Qeve.CDmert Coirpany 6 7 Southern Indusmal Services. Inc 7 8 Trans-Serve. Inc 8 9 9 10 10 11 Kansas Cfly Southern Gateway Eastern guarantees principal and interest S 2.000.000 Joint and Several 11 12 Gateway Eastern Railway Company obligations under the KCSR 9.5% sen.or notes 12 13 Southern Development Company 13 14 Southern Industrial Services. Inc 14 15 Trans-Serve, Inc 15 16 16 17 17 18 Kansas City Southern Gateway Eastern guarantees principal and interest S 437.100 Joint and Several 18 19 Gateway Eastern Railway Company obligations under Irse KCSR Amended and restated 19 20 Southern DeveloDment Company credit agreement 20 21 Kansas City Nothem Railway Co 21 22 Trans Serve 22 23 Pabtex GP. LLC 23 24 Southern Industrial Services. Inc 24 25 Sis Bulk Holding 25 26 Veals Inc 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 . 36 37 37 38 38 2. If any corporation or other associations was under obligation as guarantor or surety (or the performance by the respondent of any agreement or ooiigaticn. show the particulars called for horeunder for each such contract of guaranty or suretyship at the close of the year or entered into and expired during the year This inquiry does no; cover the case of ordinary commercial paper maturing on demand or not later than 2 years after dale of issue, nor does it include ordinary surety bonds or undertakings on appeals in court proceedings. Finance cockel number, title Line maturity date and consise descrip- Names of all Amount of contingent Sole or joint Line No tion of agreement cr obligation guarantors and sureties liability of guarantors contingent liability No. (a) (b) (c) (d) 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 Railroad Annual Report R-1 67 502. COMPENSATING BALANCES AND SHORT-TERM BORROWING ARRANGEMENTS (Cc 3:5 -.3 .-;'6S as a ;j :e re s-aw Lie :«;u -trWi :3irpirs3'..i3 Mar«*s end sftc-l-'scm b:rr ?ac:-3ie c sc 3S.-S is reqi. re: e.-a- 1-0.3" i*t arra-jsn-e-! s ne. re.ucss Is «.' i n} r:! a^if) -sslrcte: ! 31 Sa *~c& ihsss jals, -n3/:~..rr 2n; _trs c* 3-iS'.3" 2. T.T,e cep:si;; j.-c se- .is'esc'iscos' ::-s: j;"5 :;rncsr>>3n; :»ar:ssn:t.i 3 Co.-ser»- -g C2 aica sr.-a-strre-:s r*e: oi'/ oa c socss: Icr fe lalesi Ss:&. yea- 4 CCJr;«is3' "3 csUncis r.:L:edi' Acc:-,n; 70J. S:ec at C;?:s.'.5, ana nATCCjri7l7. CLierF.rai. sio'.ld a.sc cs sepsriM!/a sclcssa ceo.v : d.T.;e-Ea- -g Sa a^ce a-arse-STTS a-* sJ'r 41" ,• rra'.t' a K 'eq.i't ='a: os.-s n !ccl.-.c-ei -A.-in «^ agg'ejjia s( *r:'en S".3 Ofa. agrsei-ent i Wre-v a :amsr i nci i COT: 'ance JUT a c;->peiialu5 ca a-:e requiremen: -ne fac' sns- s ;e':.M osss 9.cns JH'JI saitd arii pssac'a 5anoc-"s •nfft-i' ;-cp P93£ b e sa~: :.*s r-ay te ,Tm«;ia:e fncl vasue cr ^•p'edidasisj arc -rate- al. 1 Tn« C: : Anr.a' 68 Road Initials: KCSR Year: 2007 NOTES AND REMARKS THIS PAGE INTENTIONALLY LEFT BLANK Railroad Annual Report R-1 RoaU'i.tais KCSR tear 2CD: 69 510. SEPARATION OF DEBTHOLDINGS BETWEEN ROAD PROPERTY AND EQUIPMENT (De3arsn Thousands) "(•a pr.ncipa, USE ot si-ia jcl'eci-'e is ;o 1. Debt Outstanding at End or Yen: -ne Balance 3t Line K3 ACCCLIU Ma T,i:e Source Closed Yea: No 1 751 tears 3-d \ctss Pa/asle Sen ZOO. L 30 _ 1 2 754 Hqj.p.ren: 0:bgaticns and Other Long-Tenn Debt due W.tn.n Cue Year Sch. 200 L. 33 650012 2 3 755- -57 rurceo Seat U-jnatureJ Sch.JCO -.41 246.679 3 4 756 Ecu pmer! Oti gadcns Sch.JCO.L « 733 4 5 7565 Cap.'aiiied L.ease Cfci.gatiara Sch. 200. L. 43 6,984 5 6 733 Dsol .n De»a.,l Sch ZOO. L 44 . 6 7 785 Acco-nls Pa>,ac:e AS ia;«d Conijan.es Sch 200 L 45 224.799 7 8 770 1 773 2 Urairor-j^ej OK! Cranium Sch 200. L. 46 . 8 9 To'a: Oebl Saflil 1-8 1.125,212 9 50 Dsbi C'rect.y Sealed to Rsad Piosety Note 1. 896.739 10 11 Deil O.rectr/ -)e ated to £qo c.T.ent Nois t 7.624 11 12 Total Ceb! Oirectiy Rela'ed la Road & Eauipira.it SjmL lOardL. 11 904.413 12 13 Percent D.necl.y Re.af&i to Road L ICdiv byL. 12 VVhcle% + 2deomals 99 15% 13 14 Perce.il >rect;y Relate? to Equipment L. Udlv byL 12 V 15 Ces' Nat Direct;.' Related x> Road sr Equiorner.l L9-L 12 224.799 15 16 P.aad Properry Debt (Nate 2) !L 13XL -5| + L 13 1.119.7CO 16 17 Equipment Seb! [Note 2j (L 14 XL. 15) *L. U 9.512 17 II. Interest Accrued During the Yean Lire Saiance at Line Ma Account No Tie Source C:ose oi Year No 18 545-545 Total Interest and Amortization (Fixed Chjraesl Sch 2)0, L 42 68,279 18 19 54B Conur.ge.-.t Imeresl on Funded Debt Sch 210. L 44 . 19 20 S!7 Release ot Premiums en Forded Debt Sc.1. 210. (. 22 . 20 21 Total Interest |1~ 18 '•L 19) -L 20 63.279 21 22 .rlsrsst DvecSy delated to Road Propel, Debt tlwe 4 67,537 22 23 interest Cnecti> Related :o Eiuicrrerl Debt Nate 4 692 23 2i .rteres: Net Oirec'Jy Re'aled la Rcac or Equ'pnent Property Decl L. 21 -ft 22 » L 23) . 24 25 Irterest Read Property Debt L 22*(L 24XL 13) 67,537 25 26 Interest rqjiprnent Dect L 23*(L.24XL 14) 692 26 27 Emsedded ^ate ol Debt Capital - Road Prosarty L. 25 div by L 16 604% 27 23 Emoedded Rate of Debt Capital • Equpmeit L 26 div byL 17 7.28% 28 >re:3 i Direct re'aled means the purpose v.Cj;ri the funds v,ere used »vrien tee deal was >ssued Ncla 2. L.ra IS plus Line 17 rrjsl eqi^al Line 9 Note 3 '.me 21 "neli-des i.-.'e Ra.lrssd Annjal Reocr R-l 70 Road Initials: KCSR Yean 2007 NOTES AND REMARKS THIS PAGE INTENTIONALLY LEFT BLANK Railroad Annual Report R-1 :aa lT.;ia;s. KCSR Year 2007 71 ui a Ui o w z 111 ffi w = at o o to => cr Ra-'oao Arr.ual Report R-i 1 72 Road Iniliais: KCSR Year 2007 1 - CN i 0 IT « r- < c li 8 " j I ? i | J 1 ( 1 < ( E 1 I i ( ) ^t 1 O c 0 1 UI 1 c c j g 1 1 c* ] ; ^ 2 s ** t 1 1 I ° g Q UI 1 1 a. a OT UI | 1 O!1 'o * UI Ug) < 1 £ j ! s .! j 4 | 1 1 •5 _ . join t to o u s J •£ S? || _ i c G £ t s C a 1^ j s I 1 jl s 11 1 Eas t S U * i fee s an d B S If us | I U Ij " 1 !!s u i II 1 f 3 5 5 5 1 iy £a ^^ 7: z a 5 £ * ^i i i 0 C 3 0 L C 1 1 8 I a 1 i- oUl • 1 0 a. 1 ! i | j 0 il|* 1 O y 3 s-g I1 i s =• 1 C j w 1 c i 1 £ u^ iS u 1 II S i 3 VI 1 5 1 tM m LI 1 Rca INSTRUCTIONS CONCERNING RETURNS TO BE MADE IN SCHEDULE 700 Sale pa-£cj ais cl a I '.-s:ts cpamti by !lf L'-~.a i.vrec oy resBCJBenl £2.' Line c-.-.ned ay prsp"eiar,j cc-rpan:«s ;31 Line cpeti'od wf 3-jr ,ea 5s fcr a SBK 'rad j-.m. lessor teing (A; an abated cirjcrasan, cr (B) mdepencwi or r.o: affiliated *Kn respondent ;-) Lna c:ora;od ui-csi contract cr agreen-eni (or or.tingenl fart. i*.".er be iig (A) an affiliated corporation. or IB} indeoendenl or no! afmbletl wtri r Gi.'e subiaia 5 fcr each ol :hs several lumsared classes. .r. tr.e si\xr '.is:ei4 a:o.e as fta'l as 'Jie Iclal fcr all classes Lergths ;( tacit st-cu.i be reported tc the nearest WHOLE iri'e ad;usled :o accent v.nh fiot.ngs. i 9 , C3sir,tirg ona-raifrr,i)e and ever as a whcle mte and d-sregarding a.-.y (ra::,o^. ess Tar cra>a.f .Tiile in cclLrrn (a, insert y\e rtgut 3 land ieCer. if an/) inii caLng .ts class in a-:cai ianca AT.U; In? prece=:.ng ctasilicalon In ce.Mmn pi qivs lf« vanjjs prcpcn.ans of eaon class o.vr.aj at leasej ay respa.-.iien:. l;st,"3 escn prcportiwi ar.ea in any groupirg Canadian mileas* sncu'd SB ssgrcsa:£tl i.r.gie or frs'. train Iracki. am in the following cciurrns tie lenguii cl second main l/ack; ad olhcr ma-n (racks, passing tracks, cross-overs and , -.'.-a/ i.vlidiflj Uaccs. and /ait s.vncnr.g ncis These c'assas cf traclis are denned as fercws u^n-nt) traus. passing tracxs. croi}-o>ers. etc . me ud.ng lum oi.ts tr:m these tracks to clearance points W3f iei.idhin; kid's . Sa'jon, toi.Ti. mdostry and ot-er switch ng Iracki fcr #hich no separate se Vard SAii:l»r.g tixts Yaris wnere separali s/^ch.ng urvices are mair.lair.ed, ir.ming classificstiai. hCk.se. team, industry and otar irac>.s switched DV yard loccrrctves T>e returns n columns fh) and 01 should include traiits serving industnes, such as Rimes, fr'i.s. smelters, faclorias. etc. Tracks beionging to an industry for 'Ahicn no rent is payab'e sfojid not Da included Tracks leading to and in gravel ana sand p.ts aid quarries. Ina cast of >vhich is chargeable ta a clearing account and which are used m gerang 01.1 material \y tne res^cnderr: use. >.nc.>d no: ce jituied Class (1) includes ali ::nes cperalea by «e respondent a: (he close ol tie year :o nnlcn n has Side in perpetuity Class (2) i^d-das «aci lire. M title to wrioi a m an tractive prcpreury corporation of the respondent 0 e., one all of wnose outstanding stocVs or ODlt- gaiiens are held by or for tne respontianl, a.-d wn.ch is operated by the respondent or an affiliated system corporation without any accounting to the said proprietary corporation) R may also include such line -&hen the actual title to an of the outstanding stocks or obligations rest in a corporation controlled by or cjfitrol'jrg tie respcncen:. BUI in me case at any susf. Inclusion, the facts of ralaton to Ifte respondent cf His coipwaton ridding the sacunties thoukj be Ui/ sel totrt in a footnote. An inactive corporan'cn is one which has Deert practically absorbed 'm a controlling corporation, and which neither operates property nor admir»siers i:s Tnancal affairs, .fit ma mains an arganizaticn it does so only !or Ihe purpose of complyirg with legal req Jiemenls and main- taining I.Ha to property or franchises Class {31 inciudes all rack; operand ur.der a lease or formal conveyance of less than !h« yaaiuft interest in Ihe property. «*i a specific and unccndi- tisnal rent ;e!«rved The tact !ia! the .essor does or does not maintain an independent organization fcr francal purposes is Immaterial in Inn conneccon C.333 (4) ts the same as class (3). except mat the rent rese'ven is condilioral .pan earning! cr other fact C'ass (5, mcl Jdes all IracX; operated and .-nainair.ed by ciners. but over Ahich the responjor.i has V.e r>gM to operate K Raad held b/ Ihe respcnder:! as joint cr ccniiTon c«ne: or a jcint lasses or under aiy joint arra'ngemEni should oe snown in its appropriate class, and tne envy of lar.g;h sr'O.la DO cf *a entire ieigtn of Ire pcrt'cn jclnKy held Tne class symbol shou d have Ihe letter (J) attacned R=ad ope.'sad b> t.s reipcneer.t as a;er; fcr ancthe: carrier shov.:j r.ct be included m fris schedule Ra ,road A. 74 Road Initials: KCSR Year- 2037 700. MILEAGE OPERATED AT CLOSE OF YEAR Runru g (racks, passing tracks, cress-overs. e!c. Miles of pass Proportion owned Miles of Miles cf ail ing tracks, Miles of way Miles cf yard Line Class or leased Miles cf read second main other cross-overs switching switching Total Line No. oy respondent track main tracks and lumouts tracks tracks No. O) (b) 51 f 51 52 52 53 53 54 54 55 55 56 56 57 TOTAL 3.151 30 2 321 256 672 4,432 57 58 ! ,es of eisctnfiec read 58 : track included in NONE NONE NONE NONE NONE NONE NONE receding grand total Ra Iroad Annual Resort R-t Roaa ir.,na's KCSR Year 2CC7 75 T- ,, r>. rg so tf) o p- 90 X o CM to t m (0 r- oo 0> o tN ^. a a> O o N i ^ ^ C-4 1 1 1 S3 <, B S III is ° * 1 => s Z H| III Z "I = ' • gj 12 n • • o • TS- = r- S !•- O S •; rt 3 § ^ si ! i ||g 5s| • -I! \ as p~ U) o 1 3 S « co 1 5 S IB . «•} UJ 5 = 8? —J 2. > c ° $ z SsSI o 4 C1 S 0 T- •T § (1 ) rialiii . Lin e operate d unde r trackag e rate d roa hel b y G mil e an d disreg a mileag e shoul d b iRITORIE S ( shoul d no t b e mcl u VTE D B Y RESPO r § ( ( ( o: t ! t ii tL~° p ° u. p c g * -^ a " Q ° S § B O ^ S UJ < l*i ! O C/J p g ^-S IT I •§ ^ — 5 K «"sll O (T> < H S S o 1 1 1 1 ^- (U "O £ •= • • CM • - ' <0 & Is ^ S g « 2 s illjj Si - i 1 8 ' * ' ' 1 ' 1 oHi! 111* UJ If - o Jo I *1 » 0 | ~ Ji 3Jh! 1 , QO s s to S UO S < iStl 1 i— T- co 1 § Q ra _ a g OJ I S" o is|.| •I "~ 3 •jj o • ** TI UJ cfr|f 5 s iHa >. t ® ° i 1 1 c ^ ft ^"a « ^ S ~ t •C -^ -O O O -•• M S|ls uj o - w» 5 u8 g 1 1 II V U t« S _J c S f = Arkansa s OklntKHii a Louisian a sill Missour i Tennesse e Alabam a 1 ft u cQ =i •o I "^ O 6 ,J. o T- NOTES AND REMARKS THIS PAGE INTENTIONALLY LEFT BLANK Railroad Annual Report R-1 Roaa tRKtats KCSR Year 2007 77 s«T i5 Uc. ? 5g £u §3 n - S g li fl 2 -5 = !5 ° 1 J = = ^3338 I u E si E = jg i: Iv, I8 i 1 -- ga: o z s EC 01 o o O o en g fc S I to I o Ifi 5 u Ra frsad Annual Report R-l 78 Road Initials KCSR Year 2007 13 1 2 C w IE UJ uai CO eg T O D LE A EN T 5| S .1 3 o j n 5 f ; o j 01 u a "*S o Z Z KBo iils O u> 4 * 75 t« S i S 0 3 Z Railroad Annual Report R-l floaoinl.a.5 KCS^ Year 22C7 79 ; z s s? S II io < Q ' • 3 S 2 S at «us. i *«•-*' * "i i3-? o D O 0« U.H UJ 1 1 Pi z ~ U £ > £» Z UJ tillr, « * -ss ~~ O = •• I ? I |g s! 21 «jj i ! is Si-If - II 1 !£ I puf f di u i IE is :e»i J> I T . s as 5 < g ii 3 Railroad Ann.al R*pari R-l I 80 Road Ireifals- KCSR Year. 2007 I 710. INVENTORY OF EQUIPMENT - Continued instructions re.- •epon.ng freight-Ira n car data 1 Gve particulars c! each a! Ihe vancus classes cf eqv pme.il wmch respondent owned or leased during :he vear 2. In cciumn (d) g. ,-e trie number of ur.,3 purchased cr Cuil in company shops, in cclLmn (o) gi /* vie nirncer cf new unis leased Jrcm outers The term I •ne.v' means a >.nl p'aced n service lor me first uno en any railroad 3. Urjis leased 10 alters far a period of one year er mere are reparable :n column (n) Un.ts tompcrarly oul cl respondent's service and rented to others for less v.an one year ara to be mcuded in COIU.T.II (i). Um:s reniad (ram otr.ers (cr a period less man one year snouid not ee included in column Q) I UNITS OWNED. INCLUDED IN INVESTMENT ACCOUNT AND LEASED FROM OTHERS Un.'.s in service of resson Changes diinng the year dent at be; rn>Rg cl year Units installed All oner unils, N9.YOT I Rebu It un.ts lncl.c:ng ^classi- New units rebuilt units acquired and fication and sec- Lme Cross Ciaii of equ.pn!er.i and car oes gna! ans Tirne-Tjleag A'l clne'3 purchased leased Ircm rebuili urits ond hand units Line No Check cars or cuil: others rewmten into purchased or No property accounts leased from others (a) (6) (c) Id) (e) (1) (9) I FREIGHT TRAIN CARS 36 Plain bax cars -40' (SI . 92 ) NONE NONE 35 37 Plain cox cars - 50' and longer (83.0-7. B4_C-7. 65 . E6 I B7 . B6 1 1.702 37 38 Equipped box cars (AliCodoA. ExceotA s ) 5.040 1.675 38 39 ala I 61 710. INVENTORY OF EQUIPMENT - Cenir.uec! - 0:ii.'"' ;:") stcJd HIJ.-, agyega-a cacao:? to Si •ja'sayTa.r, ::u'ii^S',i;a'J;'tasfoi-'Mi -or '.-9 jni-wam a-s ceso-. ne -antr-si ca:axy • -o-s =1 J o:: ess as pf; ..ess !:- - 3u s 36 ;f TS WR CCTS cf 3. es 3:-.e- n; CB-S n t-!5tfa-;« C:!wsr. ra ca;ac.., ;f -sun ars u apa: !,- n ia-s I :' irscairiroiiv ..h :n L"B ;3."'S '-:Erosd :s :a"; Cusiorrar t 5 T n-.e -T; .ta^s ca-^ rclt-s 'o (•;,;*•.! cars, orsr nan uc::>es. ;A,"93 cr is:a '..-tftr 'ess: a jre3tr«m. vv;sa m:s." Ji« rs-a. » ssriea en a ps- o dm a-3 >.-e na-1 n-,!3jc3 cjs s _r.3»f 'Cede cl Car c re RulE-s" :r ACU a ce so stiuci ' usss o> 3'c-iwf ra roaJ I U.--:.TS 0-AtlEO INCLUDED :. IMVESTMENT ACCOJIST AND LrASEC FROM OTHERS C"irjMa.-i«g ,ssr iri's a* ccse cr ,e3r •c:icjjSsfll Tc'al n ssr.Kaofreiicr.se'-.l ;KI 'i'i;jii I I.1* :& :ei •«! '•c'a w.i:= j'-'sspciileii Agj-«$3ie apse :/ '-".0 C'SSi ^.-.e: erc>v.i«J CA- 38 532 1.293 48SO 6163 508,560 38 I 39 75 62 75 137 13,700 39 4C 340 84 727 an 81,100 40 I 41 1 33S £47 3.277 3.824 382,400 375 41 42 213 61 . 61 8.100 42 43 140 . 4t8 415 41 SCO 43 I 44 . . . . . 44 45 . . . . . 45 _ I 46 99 300 300 22.800 200 46 47 . m 138 198 10,494 94 47 I 48 . . . m _ 48 49 342 343 685 63.020 49 _ I £0 3 14 14 1.073 SO 51 3 24 10 34 2.754 51 52 12 B 311 311 21,770 52 I 53 4.451 2.432 10.57! 13.C03 1.157,465 66S 53 54 - 3 3 3 N.'A 54 I 55 4*51 2,435 10.571 13.CQ6 3 1.157,468 SS9 55 I I I I I I 82 Road Initials. KCSR Yea<:2C07 I 710. INVENTORY OF EQUIPMENT -Continued UNITS OWNED. INCLUDED IN INVESTMENT ACCOUNT AND LEASED FROM OTHERS Uniis in service of respon- Changes during the year cent at beg-na'r,g ol year Units Installed I All other units, Rebuilt units ifc'bding rec-assi- Mew acquired aid ficalicn and sec- Line Cress New uni:s units rebU'lt units ond hand un'ls Line No. Clack Class ef esuprreni and car designator.: Per tfiem All others pur:hased 'eased (ram rewritten into purchased or No. I cr bud! olhe.'S property accounls leased frcm otters (a) (b) (0 (a) (e) (0 (9) FLOATING EQUIPMENT I 56 Seil-iuccei'cG' vessels [TL;=ca:s. car (ernes, etc I N/A N/A N/A N/A N/A N/A 56 57 Nen-seif-prcpe:ierJ vessels (Car Poats 1 cWsrs. etc.] N/A N/A N/A N/A N/A N/A 57 I 53 TOTAL (:.nes 56 and 57) N/A N/A N/A N/A N/A N/A 58 HIGHWAY REVENUE EQUIPMENT I 59 ChasssZl . Z57. 253.Z69 1.282 59 60 Or/van U .2 , ZS . 1-6 514 15 60 61 FiatbeaU3_ .Z3_ . . 61 62 Open bed U'- . Zt . . 62 I 63 Mechan.cal refngeralcr US . Z5 . . 63 64 Bjlk hcoper U0_ _. Z0_ .. . - 64 65 Irsulated U7 . Z7 . . 65 68 Tank ' ZO _. U6 (S«er.oie) . . 66 I 67 Other Iraiter and container (Special equipped Dry Van U9_ _, ZS . Z9 ) 67 . . I 68 Tractor 63 69 True* . . 69 70 TOTAL (lines SS to 69) 1.796 15 70 I NOTES AND REMARKS NOTES- L ne 66 (Tank) must hive filling code 'CM' la qua'ify at a -ank: otherwise, il 13 a bulk hosser. I Musi have listing cede "CM" to quaWy 1st lark otherwise it is a bu KCSR its- 2:0' 63 I 710. INVENTORY OF EQUIPMENT -Concluded UN.TS OWNED. INCLUCEO 'N INVESTMENT ACCOUNT AND LEAS50 FROM OTHERS C-ar-es ii!.r.-g vea' L'r. ts ii c'ue c' \'*ar I (:an;.4:di Ts'3' .-. service ct -esio.-.dw.: '•:=) (iiifji) tir :s '•! Jes I'CiT ser. cecvesior;*-: A;;rt5jie cacsc!/ ire Cr:ss frnelre: a/rreij Qar.eG ars -.sea Leased f.-am P«i ien A.' clrer of -n.ti fepsted Lease: '.a stt-eri Lne h3 C-ec< c'iea>» .nc.ufl r.; ci-e.-s r.ec' |K)i() f(c I r«;a»fC3'.;i [see r.s 4) I ("J W U ("M () {•=•> (nj 56 NiA N'.'A N'A N-A M/A N,'A N'A £6 : I 57 iN: A WA N A N'A M'A M'A N'A 57 53 N.A NU N'A N-A M'A N.-A MiA 53 I 59 352 S30 930 N/A 59 60 . 49< 35 529 13.225 60 61 . . . . 61 82 . . - . 62 I 63 . . . . 63 64 . . . . 64 65 . . . . 65 I 66 . . . . 66 57 67 I 88 . . . - 68 £9 . . . 69 70 352 494 965 1.459 13,225 70 I NOTES AND REMARKS I I I I I I Pa. oafl A-.'La! Rip;;: ?.•! I I 84 Read Initials. KCSR Year- 2007 I 71 OS. UNIT COST OF EQUIPMENT INSTALLED DURING THE YEAR (Dollars in Thousands) 1 . Give particulars as request, separately. to: the vanouj tiasses of new units and rebu.!! units of equipoise; instated by respondent during the year If I mforrrat.on rec.arci.-s Die cos! ol any mils ms!a"ed is not complete at lirr.e of Til ng or :e:ort. the units should ba omilted, but reference ID (he number of UP..IS cm.:tea should te g ven ji 'sctrcte, Die details as io cast lo ce given in the report or the Mowing year. Tne cost of units under construction at Ire dose of the year snould no; se reflected in th.s scheme even though pan cf Ine cos! appears in the property account for tne year Indicate m column (e) whether an installs! on repieae-xs eqjipmeit purcnased (P). ba:'! cr rebuilt by contract .n suls tie ra.!raas shops (C) or bu it or reb jit in company or system shops (S) incUKfng ur.il: acquired tnrcugn capita'ized leases (L) I 2 In ccljrrn (a) 'is: eacn class ar type of locomotive ur.,t. car cr TOFC/COFC equipment en a separate line. By dass is mean! the standard class .ficalen used :o astirgasn types of locsmclive uws frelgnt cars cr mt-er ec.upnr.en; acop'.ed by the Assooat.on ol Aniencan Railroads, and should include physical characteristics requested by Schedule 7 tO. Lcccmotive units should be identified as to power source, wheel arrangement and horsepower per unit, such as a'umnurR-ccve'ed hopper car (LO). steel boxcarvsperal service (XAP), etc. For TOFOCOFC show type of equipment as enumerated in Schedule 7 10. I 3 In column (c) sho.v :he :oal *e:ghl in Ions :f 2.0CO pouncs. The weight o' tr.e equipment acquired shou'd be Uie weight empty 4. The CDS! shcii'd be the ccn-p'eta ccs: as entered en the ledger, inc'udmg lo'e'an line rre.cht ct-argss and handling charges S Data for :r..s schedu'e should be confined to the ur.ils repcrted in Schedule 710. columns (c) and (e) (or !ocomoi.ve un.is. passengsr-'^am cars aid company seance cars ard cclumr.s (d) and (f) icr freigiit Van cars, Coating equipment and highway revenue equ-'prrenl. Disclose new units in the upper section cf this sci-edule and m the 'ewer section 6s:'ose resuill un.!s acquired ar revA-tten into t.e respondent's accounts. The term "new" as used herein sha.l mean a uml I cr units p'aced in se'vice for the first fn-.e on any railroad. 5 All unequipped boxcars acquired in v.h:le cr .n pan vuln r.cen:ive per e em funds should be repcrted on separa'e tnes and aparccriaiely idenlined 2y fcowcle c> sub-he3d>ng NEW UNITS I Method of Line Class of equ pmen; Number ol units Tola! weight Tola! cost acquisition Line I No (tons) (see instruction) No (a) (C) (0 (d) (e) 1 1 2 NONE 2 I 3 3 4 4 5 5 6 6 I 7 7 8 8 9 9 10 - 10 11 11 I 12 12 13 13 14 14 15 15 I 16 16 17 17 18 18 19 • 19 20 20 I 21 21 22 22 23 23 24 24 I 25 TOTAL . N/A . N/A 25 REBUILT UNITS 26 Oumo and ballast cars [MWB. MWD] 72 282.635 18.329 L 26 40 137.445 27 I 27 Other maintenance and service equipment cars 2.592 L 28 28 29 29 30 30 31 31 I 32 32 33 33 34 34 35 35 I 36 36 37 37 38 TOTAL 112 N/A 20.921 N/A 38 39 GRAND TOTAL 112 N/A 20.921 N/A 39 Railroad Annual Repcrl R-1 I I rm.3S f.ZSn ver 2CC7 85 a . I at "2 o 5 f, e •5 1I — £. 5 I iflit 111t i! ig s§ n= S :| !IJ X X l ill X UJ _ ^S III IS gli 5 a a <0 Ia o u II5 ~ Ia — u EE u. X X X X Ill- X X X S: X O Z Ill a Is UJ o S ti o I |1||! o a ^s!!^ 1 = ^ = _ 1*38 u 5 Hi I 1 s a &e 9 !j o>X ™ »• 1 ||l|' UJ S sail. til S ^ Em«i0Sa K •g | RSfffSte' « o'B'S'S I 8 " rs s?* s = u; Ra iroao Annjsl Repcrt R-1 I I Road Initials'KCSR Year: 2007 I I I S> 3 •= o S, I uj §3 fiS-e sn *= I S3 11 If I It cI Sa Ji?.!- I |li !°Mss I I Q. ui or z I •^sg-^S E § | | = 3!*§ g = D' lii'll gl^li= 1^*s3 I ||I||| ISlflll I S TI i a»35 BE I _ il||1 ils||ii i f C . 3 S S I I s ". a a 5 - = Ift^i I l!il!!l o UI — IM r> ^i I Railroad Annual Report R-1 I I I I Road Ma s KCSS Yea- 2C37 87 I I I V) I o 55 !" f ~- I I HI o 0> I S £9 I if s I S < •s I § 5 fe - = 0 S I sll s1 Ir c-o II I ui 5 t 1^ I I I g ls s I § »!•§ e'»2 ^ Tota l o l H u I I = -3 = B I P.ail-aad Animal Rapo/1 R-t I 1 1 88 Road Initials: KCSR Year2C07 - CN Ifl i CO 4 !l ^ - „ 1 * 4 < c < I \ i u I t? f Q C3 1 ifI i!! cn eo c U < c CO OJ O r i i! 3 _ ^ 2 "' ji IBS 3 j= — !i (A ~ ° -i 1 It c I !l 1 c V 8 | ,__ i | G - 1 s 2 1 0 I if I r-. S..! g i C9 1 U 0 5 W S al|5 CO C4 cr C * a ir 5 g » 5 | Mil 0 1 1 afl| 3 b» CM in ,1 r s ( , 1 iff 1) a i 1 1 i o 5 1 S ^« 1 3 ||| E : 1 ) r» CM CM (£ e r 1 c\ c O • CO ! e i 1 fill' g 31 ats < u» £s ^? 1 S fspi i V 1 1 I fffjf •j 1 n lilib n d rela y rai l i 1 1 r 1 1 1 < ca u Q LLJ u. 1 ! — CM <•» 1 «M CO » m (0 CO o> Si - - Railroad Annual Report R-1 • 1 724. RAILS LAID IN ADDITIONAL TRACKS AND IN NEW LINES AND EXTENSIONS '. G..-> pa1-. :~:arso' a a s app-sj d-_^.-g me yea' m cc-rw:! en aim ifte :3ns!f-elc- of re.v;;ack. 1- :; _.-n- (a) c'ESS 'y l-e * re s' -3 arpi es 3S 13 ens 'i;.\ffA sts$ '3.4. 3£sse.Te.r yczzsz • 3, Ne.% '3 i nt;-3i a c./ j.-ssjrte -o-e l-w n a 'c;i-c:s; (4: Re 5, -sis 2 Rsl.ms nc:,uT-.s(;, arc i;jsr.:jacere;ii'ei Ji'A'HOuE(;.msers Frsc: u-iS tf ess nan cr.S'h3/s- 3.13 reaiKesafSai. arts i » i~ .s - - - ti< 1 - - •* -u - *•t, -w- «-- B» i* e pi 3 ' RAf. .APPLIED if; R^MMNG TfVC<5 PASSING R.4IL VPL.SD iN YARD STATION. TEAW. INDUSTflV TRACKS CROSS-OVERS ETC AND OTHER SWITCHING TSWCXS •fi»ff. 33 TQTJi!. N.'A _ . . N.'A 49 23 33 34 K..rDererT.-sof-eAr,.,-,,r3!.-a-.« =a,, ro MCV, c-css-sve.-s. etc inv.n«i,a»s»e.elad . 34 35 I*.— 1»' ;f ~C?s of re.'< v'3'J. sat en ssarr i:«s:."/ a".d c!"er swilen -fl :ians m »n en :ai 5 *.e'e 'a-d 043 35 36 Trac^'^les v AC Jed. 'a "s&'ed en S>S^TI i" R3 Ira: I Road Initials: KCSR Year 2007 I 725. WEIGHT OF RAIL Give the particulars called for below concerning :he road and (rack operated by the respondent at the ctoss of the year Only the respond- ent's proportion of joint,/ owned mileage should be induced. Under 'Weight of rail," Die various weights of rails should be given. Road and (rack occupied under trackage right or other form of license should not be included herein, but all road and track held under any form of I lease (granl.'ng exclusive possession lo Ine lessee) should be included Weight of Line-haul com- Switching and ter- Une rails per panies (nvles of minal companies Remarks Line No. yard main track) (mi'es of all tracks; No. I (a) (b) (c) 5? . s S I a s s" Ul g UL U) s U! g -5 11 5 3 i Railroad Annual nepcil R-1 92 Road Initials-KCSR Year 2007 INSTRUCTIONS CONCERNING RETURNS TO BE MADE IN SCHEDULE 755 Unit Tram. Way Train and Through Train data under items 2,3,4,6 and 12 shall be obtained from conductor's wheel reports (freight) cr similar records. Unit train service is a specialized scheduled shuttle type service '.n equipment (Railroad or private!/ owned) decicated to such service, moving between origin and destination. The applicable tariffs anoVor contracts generally require that a specific rr.inirr.um tonnage or quantity of carloads ae tendered as a unit for snip- mem on one biii of lading or olher shipping document in a solid (rain for rrovemsnt between origin and destination. Such tariffs and/or contracts generally contain restricted detention provisions and are subject to ame-vclume requirements which reflect the approximate capacity of the unit trains for the slated period Way Trains are defined as trains operated primanfy So gather ar.d distribute cars In road service and move them between way stations or way points Through Trains are those trams operated between t-.vo or more major concentration or distribution points. Do not include Unit Tram statistics in Way and Through Tram statistics. A Work Train is a tram operated solely or preponderantly lor the purpose of transporting company freight, work equipment or company employees Statistics for Wort Trains should be reported under item 11 only. Statistics related to company equipment, company employees and company freight moving in trarsporiat'on trains are rot to be reported in item 11. but are to be reported in Items 4-17.6-04,7-02.8-04 and 8-05 as instructed in notes I, K and L (A) Report rales of road operated at close of year, excluding industrial tracks, yard tracks and sidings. (3) A train-mile is the movement of a train a distance of 1 mile In cotrpulmg train-miles, fractions representing less than one-r>a!f mile shall be disregarded and other fractions considered as 1 mile. Train-miles - Running shall be based on the actual distance run between terminals and/ or stations and shall be computed from the crucial time tables or distance tables. Tram-miles shall not be increased to cover the running of locomotives from shcps to terminals, doubling hills, switching, or other work at way stations, or for the service of helper cr pusher locomotives or of extra locomotives on double-head or triple-head trains When the carrier's trains are detoured over foreign roads, the miies shall be computed on the basis of the miles actually run and in accortance with the service performed. Train-miles shall be kept separately for trains hauled by locomotives and trains moved by motorcars. (C) A motorcar is a self-propelled unit of equipment designed to carry freight or passenger traffic, and is not considered a locomotive. (D) A locomotive is self-propelled unit of equipment designed solely for moving other equipment. A locomotive unit-mile is a movement of a locomotive unit a distance of 1 mile under its own pc-.ver. Include miles made by all locomotive units Exclude miles made by motorcars. Miles of locomotives in helper service shall be computed on the basis of acaial distance run in such service (E) All locomotives unit-miles in road service shall be based on the actual distance run between terminals and/or stations. Follow instructions (B) regard- ing fractions and official time tables for computing locomotive-miles. (F) Train switching locomotive-miles shall be computed at the rate of 6 rales per hour for the time actually engaged in such service. Include miles allowed tram locomotives for performTng switching sendee at terminals and way stations. (G) Yard switching locomotive-miles shall be computed at the rale of 8 miles per hour for the lime actually engaged in yard switching service Include miles allowed to yard locomotives for switching service in yards where regular switching service is maintained and in terminal switching and transfer service (H) A car-mile is a movement of a urit of car equipment a distance of one mile. Use car designations shown in Schedule 710. Under Railroad Owned and Leased cars. Items 4-01 and 4-11. report both foreign cars and respondents' own cars while on the line of the respondent railroad. In items 4-13 and 4-15. report private-line cars and shipper owned cars. Loaded and empty miles should be reported whether or not the railroad reimbursed the owner on a leaded and/or empty mile basis. Report miies made by flatcars carrying empty highway trailers that are not moving under revenue bmi.igs as empty fra ght car-miles. Do not report m.les made by motorcars or business cars (I) Exclude from Hams 4-01,4-11,4-13 and 4-15 car-miles of wont equipment, cars carrying company freight and non-revenue private line cars moving in transportation trains Include such car-miles in Items 4-17.4-16 and 4-19. If private line cars move in revenue service, the loaded and empty miles should not be considered no-payment or non-revenue car miles „•*. . (J) Report miles actually run by passenger-tram cars m transportation service. Passenger-vain car-miles include miles run by coaches and ears in which passengers are earned at regular tariff fares without extra charge for space occupied; rales run by combination passenger and baggage, passenger and mail, passenger and express: miles run by sleeping, parlor and olher cars for which an extra fare is charged: miles run by dining, cafe and other cars devoted ex- clusively to the serving of meals and other refreshments and by club, lounge, and observation cars: and miles run by olher passenger-tram cars where services are combined such as baggage, express and mail. (K) From conductors' or dispatchers' train reports or other appropriate source, compute weight in Ions, 2,000 pounds. Item 6-01 includes weight of all locomotive units moved 1 mile m transportation trains. Ton miles of motorcars should be excluded. Items 6-02 and 6-03 represent tons behind locomotive units (cars and contents, cabooses) moved one mile in transportation trains (excluding non-revenue gross Ion-miles). Non-revenue gross ton-miles in transportation trains Include work equipment and cars carrying company freight (and their contents). Use ISO Ibs as the average weight per passenger, and 4 Ions as the average weight ol contents of each head-end car. Railroad Annual Report R-1 Rcao .iiLSis KCSR Year 93 INSTRUCTIONS CONCERNING RETURNS TO BE MADE IN SCHEDULE 755 • Concluded (L) F'om c:-: jc'cre' i'3'n -«c"j »• o!"er aisroira'e sc^rcsi. CCTJMB t;n-T >es B< 'rei;ht. To--m ss repreier: L~« njr-es' ji :cns si r=ve-ue Bf: ~c~ 'C'.eri.a I'S ;-.: ra/sj ana — is r -JOrspcnaLci 1-31- ire;. 3a re: ui-Ttes .~ rrcicrcar w.rs E«c. jda I C I snip rrert if {reirj-l ran&'sd ir T«ec :s;cjr;» express :a-» Tova Tj'-W.es Re«ru* F:e 5« srcj3 c:fr»spc« a ffie Tw-Wues reposes sn Foirr. CBS I'.t; fcja sa-.-.:e rep'as4".s e apsea : — e a.' ransssna: or ;rg ns (so-fi ars.-ar/ and ignl) o»;/.a?n me ime cr tporg L-e .nial >ert.na s ana ine a-ne a! ;:-e f rai »-T rais. irc'.di-.j i-a -s i.v.'c.iji5 a! .-.ay sia'.sns 3rd de'.jys en read as snc.tr cy conductors' sr d-spa^ners" tra •-i; u \3) \'.3-\-'.w. r~,,es Jis de •->;« r .«j r^i oy ira-rs 6"sag°d in ;s.Tpary sen,:e s j:n as c1-": ai rs^ec:;;.".. ns;e::i:n ira ns !crrailwa ycorrrrsss.a-er s ':r Ah en r>i> revenue is secedes !•« " J run' IT; spec ai j» )n *•- jp^ aks a $3,5 ca.T.e'5 prcseny jeiiuc: Cfl. ta«-,s run fcr t/3f>spo.T,rg ih» earner's an- ; c> ecs :s 3rd f-c-n ASV .vr*?n no I. ansparaun cnir^s :s made. v/rer (P) 7ns •t'.rrcer c' leaded frr-gh; cai j srtal be cbia n;d frcrr the can:j:ic:s' vjhee: '?;o-; aid shat ce lr.e sum of aU 'oaded ca.-s handed by ^acn l/a n. Fcr ei3T.p e. if a car troves leaded ( I ) .n a way fain (run me cngiianan penis. (2} .n tw? lrfo-_sh trims, and (3) in a way tram lo Ihe desbralion pc m. the icia. coi,n: c! !:a:e: cs.-s .-.;,:i :• fat.;. LAC c:.na far :ti* -ove.T^n'.s ir :ne «ay :r°i.ts a.-d Uc ciurJi for the novemerts 'n ihrcujh Irakis Tnerefc-'e. eac-i ca.' c.-.s"ia:ei cr {0) Repsr; vef de (T3FC Ira e~Vcc.ila.teri ai.t;rrcbi'as a.-.d lr. (R) R«pcn die n,.Tb9' of Icassc re /snue irai ers-'ccnla r.ers p:' sNppsr a: mc!3.-ca-ne-«lc .vnen8t9nMpr5vaicare5u.fei the sr.ifpet-mc.'or earner etc and nal ifcs ra^cad perfarir. that lervtie \3te TR« ccunl should (ef e:i *e uaile'.'csnu ner; •'&• \i."-c- expenses is rejor.ed n Schedule 417 LIT.S 2 C;lumn {:} CS) Rep an urder Man-e Terminal. Item IS. me lens Icaced cn*a a~d i.n!caced 'rcm marine vessel a! tf-e e»Fen«« of Die 'epofirg ra-ircxt. (T( Report ire tea! 'umier cf !cre ;n ra Ircad cars en ,ne a: ine erd cf !he year (exceot st-rp'us cars, ue faefcwj rcre-gn -airosa cars refers ID f'etghi cars c ftned by aJier rai.icaas *h;se insert ne ranta1 s setiea en i m« (6y hcur) ana aciuai >re.hai.l mi eage cnarges urder Ine Cads of Car Hire Rues Car.- en AI I Hi ;ov«ned by !e:ai csnd S-rc.js :ars a:e ca:s w cr- are r serviceac-e cc"d.l:9n Ic: '032 *.g en :re last day cf the year but ha' 1L-) F'a'.-TOFC.'COf C Cer-m. ei re;c.-ed .n Ires 25 (4-02S). 4 1 lJ 1-1SC). ir* (i-145) ard 75 14-160) >AI|I ce ccrrpLied Lsing cars •alre' than ccns'jucled :3n:air,er p aft1?, fs ear? :. an arJcJated ;ar CCT.S sl.ng of f.\e p!alf;ims rrcved sne rrfe A, I te ccunted as 3ns car-m ;e, not five car-mies. ('/; Trie =n:srm: jj L:»d f s;Lcr reared en L,ne 134 * I be :a:xia!£d for ire a% a'aje nt-ter o* 4il»-.Todal (TOrCXO-'C) units Icaced en the ave-ags ir!erm: Ra.lrcao A^tuai Hepsrt R i 94 Road Initials. KCSR Yean 2007 755. RAILROAD OPERATING STATISTICS Line Cross Line No. Check Item description Freight bain Passenger train No. (a) (b) (c) 1 t. Mies of Road Operated (A) 3.151 NONE 1 2 Train Miles - Running (B) XXXXXX XXXXXX 2 2-01 Unit Trains 4,083.358 XXXXXX 2 3 2-02 Way Trains 1.494.685 XXXXXX 3 4 2-03 Through Trains 3.147,238 4 5 2-C4 TOTAL TRAIN MILES (lines 2-4} 8.725.280 5 6 2-05 Motorcars (C) - 6 7 2-06 TOTAL, ALL TRAINS Cines 5,8) 8.725,280 7 3. Locomotive Unit Miles (D) XXXXXX XXXXXX Road Service (E) XXXXXX 'XXXXXX 8 3-0 tUnil Trains 11.897.983 XXXXXX 8 9 3-02 Way Trains 4.835,569 XXXXXX 9 10 3-03 Through Trams 9,103,564 10 11 3-04 TOTAL (lines a-10) 25,837.116 11 12 3-1 1 Train Switching (F) 693,726 XXXXXX 12 13 3-21 Yard Switching (G) 2,469,180 13 K 3-31 TOTAL ALL SERVICES (lines 11,12,13) 29.000.022 14 4 Freight Car-Miles (thousands) (H) XXXXXX XXXXXX 441 RR Owned and Leased Cars-Loaded XXXXXX XXXXXX 15 4-010 Box-Plain 40-Fool XXXXXX 15 18 4-011 Box-Plain 50-Foot and Longer 3.831 XXXXXX 16 17 4-012 Box-Equipped 49,614 XXXXXX 17 18 4-013 Gondola-Plain 19.568 XXXXXX 18 19 4-014 Consols-Equipped 6.611 XXXXXX 19 20 4-015 Hopper-Covered 33,974 XXXXXX 20 21 4-016 Hopper-Open Top-General Service 1.182 XXXXXX 21 22 4-017 Hopper-Open Tog-Special Service 3.630 XXXXXX 22 23 4-018 Refrigerator-Mechanical 45 XXXXXX 23 24 4-019 Refrigerator-Non-Mechanical 25 XXXXXX 24 25 4-020 Flat-TOFOCOFC 9,761 XXXXXX . 25 25 4-021 Flat-MulU-Level 87 XXXXXX 28 27 4-022 Flat-General Service 15 XXXXXX 27 28 4-023 Flat-All Other 4.663 XXXXXX 28 29 4-024 All Other Car Types-Total 1.419 XXXXXX 29 30 4-025 TOTAL (lines 15-29) 134.425 XXXXXX 30 Railroad Annual Report R-1 I I Road:.-. tais KCSR Year 236: 95 I 755. RAILROAD OPERATING STATISTICS - Continued Line Cross Una No Cnec* Item desc::pnon Froigh; tram Passeoger Cam No 0) (») 755. RAILROAD OPERATING STATISTICS - Continued Line Cross Line No Check Item description Freight tram Passenger tram No. (a) (W (e) 4-15 Private Line Cars-Empty (H) xxxxxx NONE 65 4-lSO Box-Plain 40-rcct - XXXXXX 65 66 4-151 Box-Plain 50-Foot and Longer 490 XXXXXX 66 87 4-152 Box-Equipped 606 XXXXXX 67 68 4-1 53 Gondola-Plain 33.458 XXXXXX 68 89 4-154 Gondola-Equipped 1.446 XXXXXX 69 70 4-155 Hopper-Covered 42.079 XXXXXX 70 71 4-156 Hopper-Cpen Top-General Service 919 XXXXXX 71 72 4-157 Hopper-Open Top-Special Service 44.954 XXXXXX 72 73 4-153 Refrigerator-Mechanical 5 XXXXXX 73 74 4-159 Refrigeratcr-Ncn-Mechanical - XXXXXX 74 75 4-180 Flal-TOFC/COFC 1,955 XXXXXX . 75 76 4-161 Flal-Multi-Level 73 XXXXXX 76 77 4-162 Flat-General Servile 6 XXXXXX 77 73 4-163 Flat-All Other 2,080 XXXXXX 78 79 4-164 Tank Under 22.000 Gallons 14,272 ' XXXXXX 79 80 4-165 Tank-22.000 Gallons and Over 25,292 XXXXXX 80 81 4-166 All Other Car Types 327 XXXXXX 81 82 4-167 TOTAL (lines 65-81) 167,962 XXXXXX 82 83 4-17 Work Equipment and Company Freight Car-Wiles 1.109 XXXXXX 83 84 4-18 No Payment Car-Miles |l)' XXXXXX 84 4-19 Total Car-Miles by Train Type (Note) XXXXXX XXXXXX 85 4-191 Unit Trains 188,331 XXXXXX 85 86 4-192 Way Trains 53,678 XXXXXX 86 87 4-193 Through Trains 339.584 XXXXXX 87 88 4-194 TOTAL (linos 85-87) 611,593 XXXXXX 88 89 4-zo Caboose Miles - XXXXXX 89 Note- Line 88. tola! car-miles by train type, is equal to the sum of Lines 30. 43. 84. 82, 83 and 84. Accordingly, the car-miles reported en Lines 83 and 84 are to be allocated lo Lines 85. 86 and 87 and included in the total shown en Lino 88. Railroad Annual Report R-1 Road Inibals KCSR Yean 2007 97 755. RAILROAD OPERATING STATISTICS - Concluded Line Cross Line No Check Item description Freight tram Passenger train No (a) (6) (c) 6 Gross Ton-Miles (thousands) (K) xxxxxx NONE 96 6-01 Road Locomotives 4.362.281 98 6-02 Freight Trains, Crs , Cnts and Caboose XXXXXX XXXXXX 99 6-020 Unit Trains 23.149.349 XXXXXX 99 100 6-021 Way Trains 5.286,895 XXXXXX 100 101 6-022 Through Trains 21.632,549 XXXXXX 101 102 6-03 Passenger- Trams. Crs and Cnts - 102 103 6-04 Non-Revenue 413,778 XXXXXX 103 104 6-05 TOTAL (lines 98-1 03) 54.844,852 .104 7 Tons of Freight (thousands) XXXXXX XXXXXX 105 7-C1 Revenue 77.970 XXXXXX 105 106 7-02 Non-Revenue 1,052 XXXXXX 106 107 7-03 TOTAL (lines 105.-.C6) 79.022 XXXXXX 107 8. Ton-Miles of Freight {thousands) (L) XXXXXX XXXXXX 108 8-01 Revenue-Road Service 30,101,534 XXXXXX 108 109 8-02 Revenue-Lake Transfer Service - XXXXXX 109 110 8-03 TOTAL (lines 108.109) 30,101,534 XXXXXX 110 111 8-04 Non-Revenue-Road Service 4,433 XXXXXX 111 112 9-05 Non-Revenje-Lake Transfer Service - XXXXXX 112 113 8-06 TOTAL (lines 111. 112) 4,433 XXXXXX 113 114 8-07 TOTAL-REVENUE AND NON-REVENUE (lines 1 10.1 13) 30.105,967 XXXXXX 114 9. Tra:n Hours (M) XXXXXX XXXXXX 115 9-01 Road Service 484.236 - XXXXXX 115 118 9-02 Tram Switching 109,076 XXXXXX 116 117 10 TOTAL YARD-SWITCHING HOURS Railroad Annual Report R-1 98 Road Initials: KCSR Year 2007 VERIFICATION The foregoing report shall be verified by the oath of the officer having control of the accounting of the respondent. This report shall also be verified by the oath of the president or other chief officer of the respondent, unless the respondent states that such officer has no control over the respondent's accounting and reporting OATH (To be made by the officer having control of the accounting of the respondent) State of MISSOURI County of JACKSON Edward E. Scott makes oath and says that he Is Asst. Vice President - Capital Investment Accounting (Insert here name of the affiant) (Insert here the official title of the affiant) Of THE KANSAS CITY SOUTHERN RAILWAY COMPANY (Insert here the exact legal title or name of the respondent) such books have been Kept in good faith during the penod covered by this report; that he knows that the entries contained in this report relating to accounting matters have been prepared in accordance with the provisions of the Uniform System of Accounts for Railroads and other accounting and reporting directives this Commission, that he believes that all other statements of fact contained in this report are true, and that this is a correct and complete statement accurately taken from the books and records, of the business and affairs of the above - named respondent during the period of time from and including January 1 , 20 07 to and including December 31 , 20 07 Subscribed and sworn to before me, a tA^ ( fW " (Signature of officer authorized to administer oaths) SUPPLEMENTAL OATH (By the president or other chief officer of the respondent) State of Ml County of JACKSON Michael K. Borrows makes oath and says that he Is Senior Vice President and Chief Accounting Officer (Insert here name of the affiant) (Insert here the official title of the affiant) of THE KANSAS CITY SOUTHERN RAILWAY COMPANY (Insert here the exact legal title or name of the respondent) that he has carefully examined the foregoing report; that he believes that all statements of fact contained in the said report are true, and that the said report is a correct and complete statement of the business and affairs of the above - named respondent and the operations of its property during the penod of time from and including January 1 20 07 to and including Subscribed and swom to before me, a NOTARY PUBLIC in and for the state and county above named, this 16th day of April . 20 08 My commission expires Use (Signature of officer authorized to administer oaths) Railroad Annual Report R-1 =*oaa Initial} KCSR Year 2:3? 99 MEMORANDA (FOR USE OF COMMISSION ONLY) CORRESPONDENCE Ansv/sr CfCfl A CORRECTIONS Aiilhoiity Date Data ofLettfif, Fax Cleric Correction Page er Telegram CfTcer Ser.d.nj Letter. Fax e: Telegram Comrriission Making Fie Number Correc'jcn Mo.-.th Day Yea: Warm Cay Year Maine T;UU EXPLANATORY REMARKS RaJroaJ A Page No. Page No Accumulates Bapretfaasn. Mileage-Average of road operalee 85 Read ana equipment leases: Of rew tracks In which rails »ere laid 88 From others 38 Of new tracks in which ties ware laid 87 Improvements lo 38 Miscellaneous items in retained income accounts for tr.e year 65 To ctners 41 Motorcar car miles 94 Owned a."d used 35 Motor ra I cars owned or leased 79 Accruals-Railway lax 63 Net Incsme I 17 Analysis of taxes 63 Oath I 98 Application of funds-Saurcs 21 Operating expenses (see Expenses) Balance sheet 5-9 Revenues (see Rever.jes) Capital siccx 20 Statistics (see Statistics) Car. 9 78-83 Ordinary income [ 16 Cnangss In financial pcs.lion 21-22 Private line cars1 loaded 95 Company serv.ce equip-nen: 79 Pnvate line ears empty 95 Compensating ba'arces and sron-termfccrrov.ir. garrangement s 67 Ra'is: | Consumption at luel oy moi.va-9O-.ver uuls 91 Laid in replacement 88 CcRfngem assets and hat l.:ies 8 Cnarges to operating expenses 45 Crashes (see Ties) Additional (rack's, newfane san d extensions 89 Debt holding* 69 M les of new,lrad< in which rails were laid 88 Ospreciai'cn base and rates: Weight of 89 Reafl and eqj!smenf leased: Railway -Operating expenses 45-53 From cawrs 34 Ra-lway - Operating revenues 16 Improvements to 32-33 Results of Operations 16-17 To others 40 Retained income unappropriated 19 Owned and used 34 Miscellaneous items in accounts for year 65 Eiecuic Iccomciive equipment at dose ol year 68 Revenues. Equipment-classified: 78-83 Freight ! 16 Company serv.cs 79 Passenger 16 Ficatir.g 82-83 Road and equipment • Investment in 32-33 FreJght-lra'n cars 80-61 Improvements to leased properly 32-33 Highway revenue equipment 62-63 Reserve 38 Passenger-train cars 78-79 Leased to others • Depreciation base and rates 40 Inventor/ 78-83 Reserve j 41 Ownsd-Nol 11 service of respondent 78 Owned - Deprecation base and rales 34 - Equipment-Leased, deprecation base and rate- Reserve 35 From otters 34 Used - Depredation base and rales 34 Improvements to 37 Reserve | 35 Reserve 38 Road • Mileage operated at dose of year 74 Ta others 40 By Slates and Territories 75 Reserve 41 Secunties (see Investments) Equipment-Owned, deprecation base rates 34 Short-term borrowing arrangements • Compensating balances and 67 Reserve ' 35 Sinking funds 7 Eipenses - Railway operating 45-53 Source and application of-working capital 21-22 Extraordinary items 17 Specialized service subschedule 60 Federal income taxes 63 Statement of changes in financial position 21-22 Financial position. Changes in 21-22 Statistics 94-97 Floating equipment 82-83 Stock outstanding ; 20 Freight cars loaded 94 Changes during year 20 Freignt-uain cars 80-81 Number of secunly holders 3 Freight car-mles 94 Total voting power 3-4 Fuel consumed diesel 91 Value per share ' 3 Cost 91 Voting ngnts ! 3 Funded debt (see Debt no'dings) Supporting schedule - Road 56-57 Guarantees ard suretysnips 66 Suretyships • Guaranties and 66 Identity ol respondent ' 2 Ties laid in repSacemeni 86 Items -n se'ecled income ard retained earning accounts 65 Ties -Additional tracks, new lines and extensions 87 Investments in common stoics of affiliated companies 30 Tracks operated at close of year 74 Investments and advances cl affil'ated companies 26-29 Miles of. at dose of year 75 Ra.lway property used in transportation serv.ce 42-43' Track and traffic concisions 85 Road and equ.pmenl 32-33 Train hours, yard switching 97 Chances during year 32-33 Tram mies 94 Leased prcceiy-improvernents made during the year 32-33 Tons of freight i 97 Leases 61 Ton-miles of freight | 97 Locomotive equipment 78 TOFC/COFC nu.-r.ber of leicnue trailers and containers Electric and otter 78 loaded and unloaded 97 Consumption of fuel diesel 91 Voting powers and etectiens 3 Lcccmome unit mi.es 94 Railroad Annual Report R-1y respcrcep! • 1 Fsr af . J'.ei .vhich da ro: 'e::r. :s »e S'-rtzce 7rans;a"3iiOfi 5»'B and are ,c n>i/ ;»ned d>sdcse in rcalr.aies !na name and exterl c( coptrc: c' I fe cLi*t fcnirc Im] en < es I I I I Res:;: ^-' I 26 Road Initials- KCSR Year: 2007