x |
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Delaware |
41-1804964 | |
| (State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer Identification
No.) |
| Class |
Shares Outstanding at
October 31, 2002 | |
| Common stock, $.01 par value |
377,475,697 shares |
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||
| Revenues |
$ |
2,308 |
$ |
2,343 |
$ |
6,678 |
|
$ |
6,907 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Operating expenses: |
||||||||||||||
| Compensation and benefits |
|
730 |
|
714 |
|
2,140 |
|
|
2,137 |
| ||||
| Purchased services |
|
297 |
|
275 |
|
850 |
|
|
811 |
| ||||
| Depreciation and amortization |
|
235 |
|
222 |
|
696 |
|
|
680 |
| ||||
| Equipment rents |
|
182 |
|
185 |
|
537 |
|
|
562 |
| ||||
| Fuel |
|
215 |
|
240 |
|
606 |
|
|
743 |
| ||||
| Materials and other |
|
228 |
|
205 |
|
655 |
|
|
625 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
1,887 |
|
1,841 |
|
5,484 |
|
|
5,558 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Operating income |
|
421 |
|
502 |
|
1,194 |
|
|
1,349 |
| ||||
| Interest expense |
|
107 |
|
117 |
|
321 |
|
|
352 |
| ||||
| Other (income) expense, net |
|
7 |
|
20 |
|
(19 |
) |
|
98 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Income before income taxes and extraordinary charge |
|
307 |
|
365 |
|
892 |
|
|
899 |
| ||||
| Income tax expense |
|
115 |
|
140 |
|
334 |
|
|
339 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Income before extraordinary charge |
$ |
192 |
$ |
225 |
$ |
558 |
|
$ |
560 |
| ||||
| Extraordinary charge, net |
|
|
|
|
|
|
|
|
(6 |
) | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Net income |
$ |
192 |
$ |
225 |
$ |
558 |
|
$ |
554 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Earnings per share: |
||||||||||||||
| Basic earnings per share (before extraordinary charge) |
$ |
0.51 |
$ |
0.58 |
$ |
1.47 |
|
$ |
1.44 |
| ||||
| Basic earnings per share (after extraordinary charge) |
$ |
0.51 |
$ |
0.58 |
$ |
1.47 |
|
$ |
1.43 |
| ||||
| Diluted earnings per share (before extraordinary charge) |
$ |
0.51 |
$ |
0.58 |
$ |
1.46 |
|
$ |
1.43 |
| ||||
| Diluted earnings per share (after extraordinary charge) |
$ |
0.51 |
$ |
0.58 |
$ |
1.46 |
|
$ |
1.41 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Average shares (in millions): |
||||||||||||||
| Basic |
|
376.4 |
|
387.3 |
|
379.5 |
|
|
388.5 |
| ||||
| Dilutive effect of stock awards |
|
3.1 |
|
2.9 |
|
2.9 |
|
|
3.5 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Diluted |
|
379.5 |
|
390.2 |
|
382.4 |
|
|
392.0 |
| ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Dividends declared per share |
$ |
0.12 |
$ |
0.12 |
$ |
0.36 |
|
$ |
0.36 |
| ||||
| ASSETS |
September 30, 2002 |
December 31, 2001 |
||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
47 |
|
$ |
26 |
| ||
| Accounts receivable, net |
|
208 |
|
|
172 |
| ||
| Materials and supplies |
|
200 |
|
|
191 |
| ||
| Current portion of deferred income taxes |
|
333 |
|
|
306 |
| ||
| Other current assets |
|
108 |
|
|
28 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
896 |
|
|
723 |
| ||
| Property and equipment, net |
|
23,826 |
|
|
23,110 |
| ||
| Other assets |
|
954 |
|
|
888 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
25,676 |
|
$ |
24,721 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable and other current liabilities |
$ |
1,967 |
|
$ |
1,873 |
| ||
| Long-term debt due within one year |
|
143 |
|
|
288 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
2,110 |
|
|
2,161 |
| ||
| Long-term debt and commercial paper |
|
6,802 |
|
|
6,363 |
| ||
| Deferred income taxes |
|
7,060 |
|
|
6,731 |
| ||
| Casualty and environmental liabilities |
|
426 |
|
|
423 |
| ||
| Employee merger and separation costs |
|
178 |
|
|
216 |
| ||
| Other liabilities |
|
1,028 |
|
|
978 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
17,604 |
|
|
16,872 |
| ||
| |
|
|
|
|
| |||
| Commitments and contingencies (see notes 2, 6, and 8) |
||||||||
| Stockholders equity: |
||||||||
| Common stock, $.01 par value, 600,000 shares authorized; 496,577 shares and 492,818 shares issued,
respectively |
|
5 |
|
|
5 |
| ||
| Additional paid-in capital |
|
5,664 |
|
|
5,584 |
| ||
| Retained earnings |
|
5,468 |
|
|
5,048 |
| ||
| Treasury stock, at cost, 118,054 shares and 107,041 shares, respectively |
|
(3,041 |
) |
|
(2,745 |
) | ||
| Unearned compensation |
|
(43 |
) |
|
(34 |
) | ||
| Accumulated other comprehensive income (deficit) |
|
19 |
|
|
(9 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
8,072 |
|
|
7,849 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
25,676 |
|
$ |
24,721 |
| ||
| |
|
|
|
|
| |||
| Nine Months Ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Operating Activities: |
||||||||
| Net income |
$ |
558 |
|
$ |
554 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
|
696 |
|
|
680 |
| ||
| Deferred income taxes |
|
286 |
|
|
206 |
| ||
| Extraordinary charge |
|
|
|
|
9 |
| ||
| Employee merger and separation costs paid |
|
(48 |
) |
|
(38 |
) | ||
| Other, net |
|
(32 |
) |
|
75 |
| ||
| Changes in current assets and liabilities: |
||||||||
| Accounts receivable, net |
|
(36 |
) |
|
15 |
| ||
| Materials and supplies |
|
1 |
|
|
13 |
| ||
| Other current assets |
|
(46 |
) |
|
25 |
| ||
| Accounts payable and other current liabilities |
|
100 |
|
|
27 |
| ||
| |
|
|
|
|
| |||
| Net cash provided by operating activities |
|
1,479 |
|
|
1,566 |
| ||
| |
|
|
|
|
| |||
| Investing Activities: |
||||||||
| Capital expenditures |
|
(1,016 |
) |
|
(1,061 |
) | ||
| Other, net |
|
(127 |
) |
|
(4 |
) | ||
| |
|
|
|
|
| |||
| Net cash used for investing activities |
|
(1,143 |
) |
|
(1,065 |
) | ||
| |
|
|
|
|
| |||
| Financing Activities: |
||||||||
| Net increase (decrease) in commercial paper and bank borrowings |
|
40 |
|
|
(320 |
) | ||
| Proceeds from issuance of long-term debt |
|
300 |
|
|
400 |
|||