2. BURLINGTON NORTHERN SANTA FE CORPORATION
INVESTORS' REPORT - UNAUDITED
Annual 2001
INDEX
Page
Earnings Press Release 1-3
Consolidated Statement of Income 4-5
Consolidated Balance Sheet 6
Consolidated Cash Flow Information 7-8
Operating Statistics 9 - 10
Revenue Statistics by Commodity 11 - 12
Capital Expenditures and Track Maintenance 13 -14
Outstanding Debt 15
3. NEWS
Contact: Richard Russack FOR IMMEDIATE RELEASE
(817) 352-6425
Burlington Northern Santa Fe Reports
Fourth Quarter/Full Year 2001 Results
• Fourth-quarter 2001 earnings of $0.46 per diluted share include an $0.11 per
diluted share after-tax charge for workforce reduction related costs. Without the
charge, earnings were $0.57 per diluted share, compared with fourth-quarter 2000
earnings of $0.65 per diluted share.
• Freight revenues were $2.27 billion for the fourth-quarter 2001 on over 3 percent
higher ton-miles, 2 percent lower than fourth-quarter 2000 revenues of $2.32
billion.
• Free cash flow for the twelve months ended December 31, 2001 was
$443 million, an increase of 3 percent over the prior year.
FORT WORTH, Texas, January 22, 2002 - - Burlington Northern Santa Fe Corporation
(BNSF) (NYSE: BNI) today reported fourth-quarter 2001 earnings of $0.46 per diluted share,
which includes a $42 million after-tax charge for workforce reduction related costs. Without the
charge, fourth-quarter earnings per share is $0.57 per diluted share compared with fourth-quarter
2000 earnings of $0.65 per diluted share.
“Despite the U.S. recession, BNSF generated $443 million of free cash flow, a 3 percent
improvement over last year. Additionally, we operated the railroad at the highest level of fourth-
quarter on-time performance since the BNSF merger,” said Matthew K. Rose, President and
Chief Executive Officer. “BNSF’s continued focus is on revenue quality, operating expense
efficiencies and free cash flow while providing transportation services that consistently meet
customers' expectations.”
1
4. Freight revenues for the 2001 fourth quarter were $2.27 billion, 2 percent lower on over 3
percent higher ton-miles compared with the same 2000 period. Agricultural Products revenues
increased $20 million, or 5 percent, to $415 million, primarily due to increases in demand for
soybeans, wheat and flour. Coal revenues increased $18 million, or 3 percent, to $546 million on
9 percent higher volumes as a result of increased demand for electricity and new business.
Industrial Products revenues fell $13 million or 3 percent, to $492 million because of continued
production cutbacks affecting most sectors. Consumer Products revenues decreased $68 million,
or 8 percent, to $819 million, primarily reflecting decreases in automotive shipments as well as
fewer domestic intermodal shipments resulting from the economic slowdown. However, BNSF
had a 9 percent volume gain in its truckload business in the fourth quarter.
Operating expenses of $1.83 billion, excluding the charge, were up $34 million or
slightly less than 2 percent on over 3 percent higher ton-miles. Reductions in fuel and equipment
rents expenses generally offset increases in compensation and benefits and other cost categories.
Operating income was $472 million, excluding the charge, for fourth-quarter 2001
compared with $544 million a year ago.
Full-Year 2001 Results
BNSF’s earnings per share including unusual items for the year ended December 31,
2001 was $1.87 on a diluted basis compared with earnings of $2.36 per diluted share in the prior
period.
Without unusual items, BNSF’s 2001 earnings per share was $2.08 on a diluted basis
compared with earnings of $2.45 per diluted share for the same period last year. Freight
revenues for the year were $9.09 billion, a decrease of less than 1 percent compared with 2000.
Operating expenses of $7.39 billion for 2001 increased by $330 million or 5 percent on 2 percent
higher ton-miles. Operating income fell to $1.79 billion from $2.15 billion for 2000.
Common Stock Repurchases
During the 2001 fourth quarter, BNSF repurchased 2.0 million shares at an average price
of $26.96 per share. This brings total repurchases under BNSF’s 120 million share-repurchase
program to 103.1 million shares as of December 31, 2001 at an average price of $25.74 per share
since the program was announced in July 1997.
2
5. Through its subsidiary, The Burlington Northern and Santa Fe Railway Company, BNSF
operates one of the largest railroad networks in the United States, with 33,000 route miles
covering 28 states and two Canadian provinces
Consolidated financial statements follow.
Statements made in this release concerning predictions or expectations of financial or
operational performance, or concerning other future events 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, changes in fuel prices, and changes in labor
costs and labor difficulties including stoppages; legal and regulatory factors: developments and
changes in laws and regulations and the ultimate outcome of shipper claims, 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 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
data 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.
3
6. Burlington Northern Santa Fe Corporation
Consolidated Income Information *
(In millions, except per share data)
Three Months
Ended December 31, Year Ended December 31,
2001 2000 2001 2000 1999
Operating revenues
Freight revenues $ 2,272 $ 2,315 $ 9,090 $ 9,112 $ 9,074
Other revenues 29 24 118 95 121
Total operating revenues 2,301 2,339 9,208 9,207 9,195
Operating expenses
Compensation and benefits 713 680 2,850 2,729 2,772
Purchased services 273 253 1,084 1,024 1,051
Depreciation and amortization 229 225 909 895 897
Equipment rents 178 195 740 742 752
Fuel 230 271 973 932 700
Materials and other 272 171 897 777 818
Total operating expenses 1,895 1,795 7,453 7,099 6,990
Operating income 406 544 1,755 2,108 2,205
Interest expense 111 117 463 453 387
Other (income) expense - net 12 11 110 70 (1)
Income before income taxes 283 416 1,182 1,585 1,819
Income tax expense 106 161 445 605 682
Income before extraordinary charge 177 255 737 980 1,137
Extraordinary charge, net of tax - - 6 - -
Net income $ 177 $ 255 $ 731 $ 980 $ 1,137
Diluted earnings per share after
extraordinary charge $ 0.46 $ 0.65 $ 1.87 $ 2.36 $ 2.44
Diluted average shares outstanding 386.5 394.4 390.7 415.2 466.8
Operating ratio 82.1% 76.5% 80.7% 76.9% 75.7%
* Fourth-quarter 2001 earnings include unusual items of $0.11 per diluted share comprised of workforce reduction related costs.
Excluding the unusual items, fourth-quarter earnings per share is $0.57 and operating ratio is 79.2%. Full-year earnings include
unusual items of $0.21 diluted share comprised of losses related to non-rail investments, the fourth-quarter workforce reduction
related costs and an extraordinary charge for a loss on early extinguishment of debt net of a transportation contract settlement.
Excluding the unusual items, full-year earnings per share is $2.08 and the operating ratio is 80.2%.
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 76.4%.
1999 earnings include unusual items of $0.01 per diluted share comprised of reorganization costs and environmental expenses,
partially offset by a credit for the reversal of liabilities associated with the consolidation of certain clerical work-forces and a gain in
connection with prior-period line sales that was partially offset by costs related to those line sales. Excluding the unusual items, full
year earnings per share is $2.43 and the operating ratio is 75.4%.
4
7. Burlington Northern Santa Fe Corporation
Consolidated Income Information *
(In millions, except per share data)
2001
1st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Operating revenues
Freight revenues $ 2,263 $ 2,241 $ 2,314 $ 2,272 $ 9,090
Other revenues 30 30 29 29 118
Total operating revenues 2,293 2,271 2,343 2,301 9,208
Operating expenses
Compensation and benefits 729 694 714 713 2,850
Purchased services 262 274 275 273 1,084
Depreciation and amortization 228 230 222 229 909
Equipment rents 187 190 185 178 740
Fuel 257 246 240 230 973
Materials and other 211 209 205 272 897
Total operating expenses 1,874 1,843 1,841 1,895 7,453
Operating income 419 428 502 406 1,755
Interest expense 120 115 117 111 463
Other (income) expense - net 73 5 20 12 110
Income before income taxes 226 308 365 283 1,182
Income tax expense 86 113 140 106 445
Income before extraordinary charge 140 195 225 177 737
Extraordinary charge, net of tax 6 - - - 6
Net income $ 134 $ 195 $ 225 $ 177 $ 731
Diluted earnings per share after
extraordinary charge $ 0.34 $ 0.50 $ 0.58 $ 0.46 $ 1.87
Diluted average shares outstanding 394.1 393.8 390.2 386.5 390.7
Operating Ratio 81.5% 80.9% 78.3% 82.1% 80.7%
* Fourth-quarter 2001 earnings include unusual items of $0.11 per diluted share comprised of workforce reduction related costs.
Excluding the unusual items, fourth-quarter earnings per share is $0.57 and the operating ratio is 79.2%. Full-year earnings include
unusual items of $0.21 diluted share comprised of losses related to non-rail investments, the fourth-quarter workforce reduction
related costs and an extraordinary charge for a loss on early extinguishment of debt net of a transportation contract settlement.
Excluding the unusual items, full-year earnings per share is $2.08 and the operating ratio is 80.2%.
5
8. Burlington Northern Santa Fe Corporation
Consolidated Balance Sheet Information
(In millions, except per share amounts)
December 31,
2001 2000
Assets
Current assets
Cash and cash equivalents $ 26 $ 11
Accounts receivable, net 172 314
Materials and supplies 191 220
Current portion of deferred income taxes 306 299
Other current assets 28 132
Total current assets 723 976
Property and equipment, net 23,110 22,369
Other assets 888 1,030
Total assets $ 24,721 $ 24,375
Liabilities and stockholders' equity
Current liabilities
Accounts payable and other current liabilities $ 1,873 $ 1,954
Long-term debt due within one year 288 232
Total current liabilities 2,161 2,186
Long-term debt and commercial paper 6,363 6,614
Deferred income taxes 6,731 6,422
Casualty and environmental liabilities 423 430
Employee merger and separation costs 216 262
Other liabilities 978 981
Total liabilities 16,872 16,895
Stockholders' equity
Common stock and additional paid-in capital 5,589 5,433
Retained earnings 5,048 4,505
Treasury stock (2,745) (2,413)
Unearned compensation (34) (35)
Accumulated other comprehensive deficit (9) (10)
Total stockholders' equity 7,849 7,480
Total liabilities and stockholders' equity $ 24,721 $ 24,375
Total debt to total capital 45.9% 47.8%
Book value per share $ 20.34 $ 19.10
Common shares outstanding 385.8 391.6
6
9. Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information
(In millions)
Three Months
Ended December 31, Year Ended December 31,
2001 2000 2001 2000 1999
Operating activities
Net income $ 177 $ 255 $ 731 $ 980 $ 1,137
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 229 225 909 895 897
Deferred income taxes 96 135 302 353 444
Employee merger and separation costs paid (17) (11) (55) (58) (93)
Other - net 7 (42) 91 33 (112)
Changes in working capital 139 48 219 114 151
Net cash provided by operating activities 631 610 2,197 2,317 2,424
Investing activities and dividends paid
Capital expenditures (398) (409) (1,459) (1,399) (1,788)
Other - net (101) (122) (105) (281) (152)
Dividends paid (47) (48) (190) (206) (224)
Free cash flow after dividends paid 85 31 443 431 260
Financing activities excluding dividends paid
Purchase of BNSF common stock (54) (152) (317) (1,496) (688)
Proceeds from stock options exercised 7 8 113 13 121
Other - net (1) (16) (18) 7 (59)
Net debt paid (incurred) $ 37 $ (129) $ 221 $ (1,045) $ (366)
7
10. Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information
(In millions)
2001
1st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Operating activities
Net income $ 134 $ 195 $ 225 $ 177 $ 731
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 228 230 222 229 909
Deferred income taxes 39 68 99 96 302
Employee merger and separation costs paid (17) (10) (11) (17) (55)
Other - net 67 (8) 25 7 91
Changes in working capital (91) 96 75 139 219
Net cash provided by operating activities 360 571 635 631 2,197
Investing activities and dividends paid
Capital expenditures (234) (403) (424) (398) (1,459)
Other - net (66) 50 12 (101) (105)
Dividends paid (48) (48) (47) (47) (190)
Free cash flow after dividends paid 12 170 176 85 443
Financing activities excluding dividends paid
Purchase of BNSF common stock (65) (92) (106) (54) (317)
Proceeds from stock options exercised 45 56 5 7 113
Other - net (9) (8) - (1) (18)
Net debt incurred $ (17) $ 126 $ 75 $ 37 $ 221
8
11. Burlington Northern Santa Fe Corporation
Operating Statistics
Three Months
Ended December 31, Year Ended December 31,
2001 2000 2001 2000 1999
Cars/units (thousands) 2,065 2,054 8,155 8,167 8,064
Average revenue per car/unit (a) $ 1,100 $ 1,127 $ 1,111 $ 1,116 $ 1,125
Revenue ton miles (millions) 127,972 123,791 501,829 491,959 493,207
Gross ton miles (millions) 227,183 219,516 896,566 875,249 871,952
RTM/GTM 0.563 0.564 0.560 0.562 0.566
Freight revenue/thousand RTM (a) $ 17.75 $ 18.70 $ 18.05 $ 18.52 $ 18.40
Operating expense/thousand RTM (b) $ 14.81 $ 14.50 $ 14.85 $ 14.43 $ 14.17
Freight revenue/thousand GTM (a) $ 10.00 $ 10.55 $ 10.10 $ 10.41 $ 10.41
Operating expense/thousand GTM (b) $ 8.34 $ 8.18 $ 8.31 $ 8.11 $ 8.02
Compensation and benefits/thousand GTM $ 3.14 $ 3.10 $ 3.18 $ 3.12 $ 3.18
Average employees 39,253 39,997 39,217 39,860 42,651
Period end employees 38,539 39,566 38,539 39,566 41,576
Thousand RTM/average employee 3,260 3,095 12,796 12,342 11,564
Gallons of fuel used (millions) 296 302 1,177 1,173 1,187
Average price per gallon of fuel (cents) (c) 77.7 89.7 82.7 79.5 59.0
GTM/gallon of fuel 768 727 762 746 735
Freight train miles (millions) 37 38 146 145 146
GTM/freight train hours (thousands) 143 136 142 147 139
Route Miles Operated 33,115 33,386 33,115 33,386 33,264
(a) Excludes effects of a third quarter 2001 transportation contract settlement of $32 million.
(b) Excluding unusual items, fourth quarter 2001 and full year 2001, 2000 and 1999 (i) operating expense/thousand RTM is $14.29,
$14.72, $14.34 and $14.11, respectively and (ii) operating expense/thousand GTM is $8.05, $8.24, $8.06 and $7.98, respectively.
(c) Includes handling, taxes and hedge effect.
9
12. Burlington Northern Santa Fe Corporation
Operating Statistics
2001
1st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Cars/units (thousands) 1,986 2,016 2,088 2,065 8,155
Average revenue per car/unit (a) $ 1,139 $ 1,112 $ 1,093 $ 1,100 $ 1,111
Revenue ton miles (millions) 125,727 122,510 125,620 127,972 501,829
Gross ton miles (millions) 223,206 220,109 226,068 227,183 896,566
RTM/GTM 0.563 0.557 0.556 0.563 0.560
Freight revenue/thousand RTM (a) $ 18.00 $ 18.29 $ 18.17 $ 17.75 $ 18.05
Operating expense/thousand RTM (b) $ 14.91 $ 15.04 $ 14.66 $ 14.81 $ 14.85
Freight revenue/thousand GTM (a) $ 10.14 $ 10.18 $ 10.09 $ 10.00 $ 10.10
Operating expense/thousand GTM (b) $ 8.40 $ 8.37 $ 8.14 $ 8.34 $ 8.31
Compensation and benefits/thousand GTM $ 3.27 $ 3.15 $ 3.16 $ 3.14 $ 3.18
Average employees 38,270 39,747 39,597 39,253 39,217
Period end employees 38,962 39,490 39,511 38,539 38,539
Thousand RTM/average employee 3,285 3,082 3,172 3,260 12,796
Gallons of fuel used (millions) 297 293 291 296 1,177
Average price per gallon of fuel (cents) (c) 86.5 84.0 82.5 77.7 82.7
GTM/gallon of fuel 752 751 777 768 762
Freight train miles (millions) 36 36 37 37 146
GTM/freight train hours (thousands) 146 138 140 143 142
Route Miles Operated 33,340 33,340 33,211 33,115 33,115
(a) Excludes effects of a third quarter 2001 transportation contract settlement of $32 million.
(b) Excluding unusual items, fourth quarter and full year 2001 (i) operating expense/thousand RTM is $14.29 and $14.72,
respectively and (ii) operating expense/thousand GTM is $8.05 and $8.24, respectively.
(c) Includes handling, taxes and hedge effect.
10
15. Burlington Northern Santa Fe Corporation
Capital Expenditures and Track Maintenance
Three Months
Ended December 31, Year Ended December 31,
2001 2000 2001 2000 1999
Capital expenditures (in millions)
Maintenance of way
Rail $ 50 $ 43 $ 233 $ 210 $ 256
Ties 50 25 254 206 170
Surfacing 41 26 146 134 130
Other 98 86 335 285 254
Total maintenance of way 239 180 968 835 810
Mechanical 62 77 183 221 240
Information services 19 23 69 66 74
Other 42 61 101 144 151
Total maintenance of business 362 341 1,321 1,266 1,275
New locomotives/freight cars - - - - 261
Terminal and line expansion 36 43 126 99 233
Other - 25 12 34 19
Total capital expenditures $ 398 $ 409 $ 1,459 $ 1,399 $ 1,788
Operating lease commitments $ - $ 62 $ 149 $ 363 $ 477
Total capital commitments $ 398 $ 471 $ 1,608 $ 1,762 $ 2,265
Track maintenance
Track miles of rail laid
Maintenance of business 211 136 788 674 784
Expansion projects 3 1 18 21 106
Total 214 137 806 695 890
Cross ties inserted (thousands)
Maintenance of business 654 396 2,646 2,450 2,055
Expansion projects 8 6 58 77 310
Total 662 402 2,704 2,527 2,365
Track resurfaced (miles) 2,836 1,927 11,011 11,228 10,505
Statement Explanation
Certain prior-period amounts have been reclassified to conform with the current-period presentation.
13
16. Burlington Northern Santa Fe Corporation
Capital Expenditures and Track Maintenance
2001
1st 2nd 3rd 4th Full
Quarter Quarter Quarter Quarter Year
Capital expenditures (in millions)
Maintenance of way
Rail $ 40 $ 71 $ 72 $ 50 $ 233
Ties 43 84 77 50 254
Surfacing 17 41 47 41 146
Other 64 82 91 98 335
Total maintenance of way 164 278 287 239 968
Mechanical 26 44 51 62 183
Information services 9 21 20 19 69
Other 9 18 32 42 101
Total maintenance of business 208 361 390 362 1,321
Terminal and line expansion 23 39 28 36 126
Other 3 3 6 - 12
Total capital expenditures $ 234 $ 403 $ 424 $ 398 $ 1,459
Operating lease commitments $ - $ 97 $ 52 $ - $ 149
Total capital commitments $ 234 $ 500 $ 476 $ 398 $ 1,608
Track maintenance
Track miles of rail laid
Maintenance of business 72 254 251 211 788
Expansion projects - 12 3 3 18
Total 72 266 254 214 806
Cross ties inserted (thousands)
Maintenance of business 330 846 816 654 2,646
Expansion projects 1 39 10 8 58
Total 331 885 826 662 2,704
Track resurfaced (miles) 1,252 3,519 3,404 2,836 11,011
14
17. Burlington Northern Santa Fe Corporation
Outstanding Debt
December 31,
2001 2000
Debentures, weighted average rate of 7.34%, due 2006 to 2097 $ 2,558 $ 2,558
Notes, weighted average rate of 6.91%, due 2002 to 2037 1,942 1,736
Capitalized lease obligations, weighted average rate of 6.55%, due 2003 to 2016 672 736
Equipment obligations, weighted average rate of 7.27%, due 2003 to 2016 677 742
Mortgage bonds, weighted average rate of 7.93%, due 2006 to 2047 425 467
Commercial paper, 2.1% variable on $216 million, 3.9% fixed on $200 million 416 567
Bank borrowings, (variable) - 74
Unamortized discount and other, net (39) (34)
Total outstanding debt 6,651 6,846
Less: Current portion of long-term debt (288) (232)
Long-term debt $ 6,363 $ 6,614
15
