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Annual 2002
Investors’ Report
BURLINGTON NORTHERN SANTA FE CORPORATION
                      INVESTORS' REPORT - UNAUDITED
                             ...
NEWS
Contact:       Marsha Morgan                                 FOR IMMEDIATE RELEASE
               (817) 352-6452

   ...
traffic. Coal revenues decreased $6 million, or 1 percent, to $540 million, reflecting decreased
shipments compared to the...
Common Stock Repurchases


       During the 2002 fourth quarter, BNSF repurchased approximately 3 million shares of its
c...
operational and financial initiatives and to contain costs, as well as natural events such as
severe weather, floods and e...
Burlington Northern Santa Fe Corporation
Consolidated Income Information*
(In millions, except per share data)

          ...
Burlington Northern Santa Fe Corporation
Consolidated Income Information*
(In millions, except per share data)

          ...
Burlington Northern Santa Fe Corporation
Consolidated Balance Sheet Information
(In millions, except per share amounts)

 ...
Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information
(In millions)
                                ...
Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information*
(In millions)
                               ...
Burlington Northern Santa Fe Corporation
Operating Statistics*

                                                          ...
Burlington Northern Santa Fe Corporation
Operating Statistics*

                                                          ...
Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity*

                                               ...
Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity*

                                               ...
Burlington Northern Santa Fe Corporation
Capital Expenditures and Track Maintenance*

                                    ...
Burlington Northern Santa Fe Corporation
Capital Expenditures and Track Maintenance*

                                    ...
Burlington Northern Santa Fe Corporation
Outstanding Debt



                                                             ...
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bnsf 4Q 2002 Investors Report

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Transcript of "bnsf 4Q 2002 Investors Report"

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

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