1. Canadian National Railway (TSX: CNR)
DCF Valuation
Valuation Date: 2016-07-12

3. Canadian National Railway (TSX: CNR)
Inputs & Assumptions <Pg.1>
Revenue
Bottom Up Method
Segementation % of Total Freight Rev. 2016F Segm.Growth 2017 Segm.Growth 2018F Segm.Growth 2019F Segm.Growth 2020F Segm.Growth Terminal Segement Growth
Intermodal 24.16% 0% 1% 2% 3% 4% 3%
Petroleum & Chemicals 20.53% 1% 1% 1% 1% 1% 2%
Grains & Fertilizers 17.37% 1% 1% 2% 2% 2% 3%
Forest Products 13.91% 4% 4% 3% 4% 3% 3%
Metals & Minerals 12.51% -7% -5% 0% 1% 2% 2%
Automotive 5.73% 4% 3% 4% 2% 3% 3%
Coal 5.80% -20% -15% -10% -5% 0% 0%
Total Freight Revenue 100.00% -0.67% 0.24% 1.44% 2.04% 2.47% 2.29%
Other Revenue 5.60% of Total Gross Revenue
Top-Down Method
Current Size 2016F 2016F 2016F 2016F 2016F Terminal Year
Market Share 10.97% 11.00% 11.30% 11.00% 10.80% 11.00% 11.00%
Railway Transp. Industry Growth $115,000 0% 1% 1% 2% 1% 2%
2-Method Reconciliation 50% Bottom-Up AND 50% Top-Down
Foreign Exchange Impact 102.00% <<<If input is larger than 100% means USD appreciates
`
Operating Expenses CapEx
Cateory % of Total Gross Rev. FY16 - FY18
Labour & Fringe Benefits 19.61% Track and Roadway $1,500
Fuel 13.57% Rolling Stock / Locomotives $600
Casualty & Other 2.98% IT (Productivity Improve) $400
Purchased Services & Material 13.22% Others (PTC Implement) $400
Occupancy/Rent Expense 2.76% FY19 - FY20
Track and Roadway $1,544
Rolling Stock / Locomotives $618
Depreciation & PP&E IT (Productivity Improve) $412
Others (PTC Implement) $412
Asset Type Useful Life FY21 Onwards
Land Undepreciated Track and Roadway $1,425
Track and Roadway 50 Year Rolling Stock / Locomotives $570
Rolling Stock 20 Year IT (Productivity Improve) $570
Buildings 50 Year Others (PTC Implement) $570
IT 10 Year New CapEx Addition Depreciable Time
Other 25 Year 0.5 Year
Amortization on Intangibles as % of Total Revenue
1.19%

4. Canadian National Railway (TSX: CNR)
Inputs & Assumptions <Pg.2>
Working Capital
Year Days of Sales Outstanding (DSO) Days of Trans Material Consumption (DTMC) Days of Paybales Outstanding (DPO)
FY16 - FY18 27.2 Days 37.4 Days 97.2 Days
FY19 - FY20 27.2 Days 37.4 Days 97.2 Days
FY21 Onwards 27.2 Days 35.0 Days 99.0 Days
Tax Assumption
Taxes
Effective Tax rate 27.33%
WACC
WACC
Target Debt-to-Equity 17%
Beta 0.90 vs. S&P500
Interest Rate
Terms LIBOR Credit Spread of "A" Rating Canadian Firm
3-Month 0.70% 0.56%
1-Year 1.30% 0.18%
3-Year 0.96% 0.57%
5-Year 1.10% 1.03%
7-Year 1.22% 1.30%
10-Year 1.36% 1.90%
20-Year 1.72% 2.38%
30-Year 1.81% 2.45%
90-Day Commercial Paper Weighted Average Interest Rate 0.41%
Acount Rec. Securitization Weighted Average Interest Rate 1.24%
Capital Lease Weighted Average Interest Rate 4.00%
Dividends & Share Buyback
Year Dividend Growth Total Repurchase Amount Growth
2015 (Actual) $1.25 Per Share $1,752
2016 20.00% 5%
2017 15% 5%
2018 10% -20%
2019 5% -20%
2020 5% -20%
2021 Onwards 2% -100%

5. Canadian National Railway (TSX: CNR)
DCF
(In Millions $USD, Except Per Share Value)
Discounted Cash Flow Valuation
0 1 2 3 4 5 6
2013A 2014A 2015A 3-Yr Avg. 2016F 2017F 2018F 2019F 2020F Projected CAGR Terminal Terminal Gorwth
Revenue $13,181 $13,452 $13,426 $13,568 $13,930 1.39% $14,250 2.29%
Operating Income $4,939 $5,008 $4,937 $4,944 $5,054 0.00% $5,134 1.60%
less: Taxes -$1,350 -$1,369 -$1,350 -$1,351 -$1,381 0.00% -$1,403
plus: Depreciation & Amort. $1,370 $1,431 $1,489 $1,550 $1,614 0.14% $1,686
less: Change in Net Working Capital -$78 -$328 $723 $97 $733 N.A. $796
less: CapEx -$2,900 -$2,900 -$2,900 -$2,985 -$2,985 0.01% -$3,135
Free Cashflow to Firm (Unlevered) $1,981 $1,842 $2,899 $2,255 $3,034 0.05% $3,078 1.46% Terminal Value
PV Factor 1.00 1.00 1.00 1.00 1.00
PV of FCF $1,981 $1,842 $2,899 $2,255 $3,034
PV of Terminal Value $53,431
Enterprise Vaue $65,442
less: Net Debt $9,751
less: Minority Interest $0
Equity Value $55,691
# of Share Outstandings 787.2
Price Per Share $70.75
WACC
Equity Debt
Beta 0.9 Tax rate 27.33%
Equity-to-Cap 85% Debt-to-Cap 15%
Market Risk Premium 6.50% Cost of Debt 2.87%
10-year US T-Bonds 2.24%
Cost of Equity 8.0900% Cost of Debt (after Tax)2.09%
WACC = 7.22%

6. Canadian National Railway (TSX: CNR)
Pro Forma
(In Millions $USD)
CNR Income Statement Pro Forma
-2 -1 0 1 2 3 4 5 6
2013A 2014A 2015A 3-Yr CAGR 2016F 2017F 2018F 2019F 2020F Projected CAGR Terminal Terminal Gorwth
Total Revenues $10,575 $12,134 $12,611 9.20% $13,181 $13,452 $13,426 $13,568 $13,930 1.39% $14,250 2.29%
Total Operating Expense ($6,702) ($7,510) ($7,345) 4.69% ($8,242) ($8,444) ($8,488) ($8,624) ($8,877) 1.87% ($9,116) 2.69%
Labour and Fringe Benefits ($2,182) ($2,319) ($2,406) 5.01% ($2,585) ($2,638) ($2,632) ($2,660) ($2,731) 1.39% ($2,794) 2.29%
Depreciation and Amortization ($980) ($1,050) ($1,158) 8.70% ($1,370) ($1,431) ($1,489) ($1,550) ($1,614) 4.19% ($1,686) 4.47%
Fuel ($1,619) ($1,846) ($1,285) -10.91% ($1,789) ($1,826) ($1,822) ($1,841) ($1,890) 1.39% ($1,934) 2.29%
Casualty and Other ($295) ($368) ($394) 15.57% ($393) ($401) ($400) ($405) ($415) 1.39% ($425) 2.29%
Purchased Services and Material ($1,351) ($1,598) ($1,729) 13.13% ($1,742) ($1,778) ($1,775) ($1,793) ($1,841) 1.39% ($1,884) 2.29%
Occupancy/Rent Expense ($275) ($329) ($373) 16.46% ($363) ($371) ($370) ($374) ($384) 1.39% ($393) 2.29%
Operating Income (EBIT) $3,873 $4,624 $5,266 16.60% $4,939 $5,008 $4,937 $4,944 $5,054 0.57% $5,134 1.60%
Interest Expense ($357) ($371) ($439) ($315) ($270) ($231) ($203) ($176)
Other Income $73 $107 $47 0 0 0 0 0
Income Before Income Taxes $3,589 $4,360 $4,874 $3,865 $3,962 $3,933 $3,959 $4,075 $5,134
Income Tax Expense ($977) ($1,193) ($1,336) -$1,056.25 -$1,083.01 -$1,074.90 -$1,082.02 -$1,113.68 -$1,403.33
Net Income - IS $2,612 $3,167 $3,538 $2,808 $2,879 $2,858 $2,877 $2,961 $3,731
EBITDA $4,853 $5,674 $6,424 15.05% $6,309 $6,439 $6,426 $6,494 $6,668 1.39% $6,821 2.29%
EBITDA Margin 45.89% 46.76% 50.94% 47.86% 47.86% 47.86% 47.86% 47.86% 47.86%
Basic EPS $3.10 $3.86 $4.42 $3.68 $3.91 $3.99 $4.11 $4.31
Weighted Average Shares - Basic # 843.1 # 819.9 # 800.7 # 762.7 # 737.0 # 716.5 # 700.1 # 686.9
(In Millions $USD)
Revenue Schedule
Top-Down 2014A 2015A YOY @ Constant FX 2016F 2017F 2018F 2019F 2020F Terminal
Market Size $115,000 $115,000 $116,150 $117,312 $119,658 $120,854 $123,271
Market Size Growth Factor 0% 1% 1% 2% 1% 2%
Market Share 11% 11% 11% 11% 11% 11% 11%
Revenue Forecasted $12,650 $13,125 $12,904 $12,923 $13,294 $13,560
Bottom-Up 2014A 2015A YOY @ Constant FX 2016F 2017F 2018F 2019F 2020F Terminal
Segement: Intermodal 2,748 2,896 0.00% 2,896 2,925 2,983 3,073 3,196 3,292
% of Total Rev. 23.99% 24.33% 24.16% 24.16% 24.16% 24.16% 24.16% 24.16%
x Growth of this segment 0.00% 1.00% 2.00% 3.00% 4.00% 3.00%
Segement: Petroleum & Chemicals 2,354 2,442 -6.00% 2,466 2,491 2,516 2,541 2,567 2,618
% of Total Rev. 20.55% 20.51% 20.53% 20.53% 20.53% 20.53% 20.53% 20.53%
x Growth of this segment 1.00% 1.00% 1.00% 1.00% 1.00% 2.00%
Segement: Grains & Fertilizers 1,986 2,071 -3.00% 2,092 2,113 2,155 2,198 2,242 2,309
% of Total Rev. 17.34% 17.40% 17.37% 17.37% 17.37% 17.37% 17.37% 17.37%
x Growth of this segment 1.00% 1.00% 2.00% 2.00% 2.00% 3.00%
Segement: Forest Products 1,523 1,728 2.00% 1,797 1,869 1,925 2,002 2,062 2,124
% of Total Rev. 13.30% 14.51% 13.91% 13.91% 13.91% 13.91% 13.91% 13.91%
x Growth of this segment 4.00% 4.00% 3.00% 4.00% 3.00% 3.00%
Segement: Metals & Minerals 1,484 1,437 -13.00% 1,336 1,270 1,270 1,282 1,308 1,334
% of Total Rev. 12.96% 12.07% 12.51% 12.51% 12.51% 12.51% 12.51% 12.51%
x Growth of this segment -7.00% -5.00% 0.00% 1.00% 2.00% 2.00%
Segement: Automotive 620 719 4.00% 748 770 801 817 842 867
% of Total Rev. 5.41% 6.04% 5.73% 5.73% 5.73% 5.73% 5.73% 5.73%
x Growth of this segment 4.00% 3.00% 4.00% 2.00% 3.00% 3.00%
Segement: Coal 740 612 -25.00% 490 416 375 356 356 356
% of Total Rev. 6.46% 5.14% 5.80% 5.80% 5.80% 5.80% 5.80% 5.80%
x Growth of this segment -20.00% -15.00% -10.00% -5.00% 0.00% 0.00%
Total Freight Revenue from Bottom-Up 11,455 11,905 11,825 11,854 12,025 12,269 12,572 12,900
% of Total Rev. 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
x Growth of Firm Level -0.67% 0.24% 1.44% 2.04% 2.47% 2.61%
Total Freight Revenue from Top-Down $12,650 $13,125 $12,904 $12,923 $13,294 $13,560
Total Freight Revenue 11,455 11,905 12,238 12,489 12,464 12,596 12,933 13,230
x Foreign Exchange Impact 102% 102% 102% 102% 102% 102%
Total Freight Revenue After FX $12,482 $12,739 $12,714 $12,848 $13,192 $13,494
Plus: Other Non-Core Revenue $699 $713 $712 $719 $739 $756
Total Gross Revenue $13,181 $13,452 $13,426 $13,568 $13,930 $14,250
(In Millions $USD)
Operating Expenses Schedule
2013A 2014A 2015A 3-Yr Average 2016F 2017F 2018F 2019F 2020F Projected Avg Terminal Terminal Gorwth
Total Operating Expense ($6,701) ($7,509) ($7,344) ($8,241) ($8,444) ($8,488) ($8,623) ($8,876) 1.87% ($9,115)
Labour and Fringe Benefits ($2,182) ($2,319) ($2,406) ($2,585) ($2,638) ($2,632) ($2,660) ($2,731) 0 ($2,794) 0.45%
as % of Total Revenue 20.63% 19.11% 19.08% 19.61% 19.61% 19.61% 19.61% 19.61% 19.61% 19.61% 19.61%
Depreciation and Amortization (1)
($980) ($1,050) ($1,158) ($1,370) ($1,431) ($1,489) ($1,550) ($1,614) ($1,686)
as % of Total Revenue 9.27% 8.65% 9.18% 9.03% 10.39% 10.64% 11.09% 11.42% 11.59% 11.83%
Fuel ($1,619) ($1,846) ($1,285) ($1,789) ($1,826) ($1,822) ($1,841) ($1,890) 0 ($1,934)
as % of Total Revenue 15.31% 15.21% 10.19% 13.57% 13.57% 13.57% 13.57% 13.57% 13.57% 13.57% 13.57%
Casualty and Other - CF ($295) ($368) ($394) ($393) ($401) ($400) ($405) ($415) 0 ($425)
as % of Total Revenue 2.79% 3.03% 3.12% 2.98% 2.98% 2.98% 2.98% 2.98% 2.98% 2.98% 2.98%
Purchased Services and Material- CF ($1,351) ($1,598) ($1,729) ($1,742) ($1,778) ($1,775) ($1,793) ($1,841) 0 ($1,884)
as % of Total Revenue 12.78% 13.17% 13.71% 13.22% 13.22% 13.22% 13.22% 13.22% 13.22% 13.22% 13.22%
Occupancy/Rent Expense ($275) ($329) ($373) ($363) ($371) ($370) ($374) ($384) 0 ($393)
as % of Total Revenue 2.60% 2.71% 2.96% 2.76% 2.76% 2.76% 2.76% 2.76% 2.76% 2.76% 2.76%
Notes(1): Depreciation is Based on the Waterfall Schedule and Amortization Schedule

7. (In Millions $USD)
CNR Balance Sheet Pro Forma
0 1 2 3 4 5 6
2013A 2014A 2015A 3-Yr average 2016F 2017F 2018F 2019F 2020F Projected CAGR Terminal
Assets
Cash and Cash Equivalents $214 $52 $153 1.22% $161.05 $164.36 $164.04 $165.77 $170.20 $174.11
Restricted Cash and Cash Equivalents $448 $463 $523 4.07% $536.01 $547.04 $545.95 $551.72 $566.47 $579.47
Accounts Receivable - Trade $815 $928 $878 $981 $1,001 $999 $1,009 $1,036 $1,060
Deferred and Receivable Income Taxes $137 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Assets -BS $89 $215 $244 1.55% $205 $209 $208 $211 $216 $221
Supplies and Materials $0 $335 $355 $362 $369 $368 $372 $382 $366
Raw Materials $274 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $1,977 $1,993 $2,153 $2,244 $2,290 $2,285 $2,310 $2,371 $2,401
Properties (Net PP&E) $26,227 $28,514 $32,624 $34,311 $35,940 $37,511 $39,108 $40,644 $42,263
Pension Asset $0 $882 $1,305 $1,305 $1,305 $1,305 $1,305 $1,305 $1,305
Other Noncurrent Assets $1,959 $298 $320 7.30% $962 $982 $980 $990 $1,016 $1,040
Total Assets $30,163 $31,687 $36,402 $38,822 $40,517 $42,081 $43,712 $45,337 $47,008
Liabilities
Accounts payable and other $1,477 $1,657 $1,556 $1,725 $1,760 $1,757 $1,776 $1,823 $1,900
Current Portion of Long-Term Debt $1,021 $544 $1,442 $1,442 $858 $729 $765 $16
Total Current Liabilities $2,498 $2,201 $2,998 $3,167 $2,618 $2,486 $2,541 $1,839 $1,900
Total Deferred Income Tax Liability $6,537 $6,834 $8,105 24.84% $8,524 $8,929 $9,319 $9,716 $10,098 $8,105
Other Liabilities and Deferred Credits $815 $704 $644 6.12% $807 $824 $822 $831 $853
Pension and Other Postretirement Benefits $541 $650 $720 $720 $720 $720 $720 $720
Orignal Long-Term Debt $6,819 $7,828 $8,985 $7,543 $6,685 $5,956 $5,191 $5,175
Total Liabilities before additional financing $17,210 $18,217 $21,452 $20,761 $19,776 $19,303 $18,998 $18,685
Total New Debt Addition Since 2016 $3,154 $6,177 $8,281 $9,986 $11,399
Total Liabilities after additional financing $24,105 $26,147 $27,778 $29,180 $30,285
Common Shares $4,015 $3,718 $3,705 $3,705 $3,705 $3,705 $3,705 $3,705 $3,705
Common Shares in Share Trusts $0 $0 -$100 -$100 -$100 -$100 -$100 -$100 0
Additional Paid in Capital $0 $439 $475 $475 $475 $475 $475 $475 $475
Accumulated OCI -$1,850 -$2,427 -$1,767 -$1,767 -$1,767 -$1,767 -$1,767 -$1,767 0
Retained Earnings $10,788 $11,740 $12,637 $12,443.09 $12,097.22 $12,030.66 $12,260.01 $12,781.20 $14,449.61
Total Shareholder's equity $12,953 $13,470 $14,950 $14,756 $14,410 $14,344 $14,573 $15,094
Total Liabilities & Shareholder's Equity $30,163 $31,687 $36,402 $35,707 $34,380 $33,841 $33,767 $33,980
Total Liabilities & Shareholder's Equity $38,861.23 $40,557.12 $42,121.64 $43,752.91 $45,378.91

8. PP&E Pool, and CapEx Schedule
0 1 2 3 4 5 6
Projected CapEx Depreciation Rate 2014A 2015A 2016F 2017F 2018F 2019F 2020F Projected Avg Terminal Terminal Gorwth
Land Undepreciated 0 0 0 0 0 0 0 0
Track and Roadway 2% 1,500 1,500 1,500 1,544 1,544 1,425
Rolling Stock 5% 600 600 600 618 618 570
Buildings 2% 0 0 0 0 0 0 0 0
IT 10% 400 400 400 412 412 570
Other 4% 400 400 400 412 412 570
Total Capital Expenditures 2,900 2,900 2,900 2,985 2,985 3,135
Gross PP&E
Land Undepreciated $2,487 $2,487 $2,487 $2,487 $2,487 $2,487 $2,487
Track and Roadway 2% $31,454 $32,954 $34,454 $35,954 $37,498 $39,042 $40,467
Rolling Stock 5% $6,216 $6,816 $7,416 $8,016 $8,634 $9,251 $9,821
Buildings 2% $1,791 $1,791 $1,791 $1,791 $1,791 $1,791 $1,791
IT 10% $1,067 $1,467 $1,867 $2,267 $2,679 $3,090 $3,660
Other 4% $1,812 $2,212 $2,612 $3,012 $3,424 $3,835 $4,405
Total Gross PP&E (*)
$44,827 $47,727 $50,627 $53,527 $56,512 $59,497 $62,632
Notes(*): Includes all capital leases
Depreciation Waterfall
Year 0 Addition $1,155 $1,155 $1,155 $1,155 $1,155 $1,155
Year 1 Addition $58 $58 $58 $58 $58 $58
Year 2 Addition $58 $58 $58 $58 $58
Year 3 Addition $58 $58 $58 $58
Year 4 Addition $60 $60 $60
Year 5 Addition $60 $60
Year 6 Addition $68
Total Depreciation Expenses $1,213 $1,271 $1,329 $1,389 $1,448 $1,517
Net PP&E (Ending) $28,514 $32,624 $34,311 $35,940 $37,511 $39,108 $40,644 $42,263
Total CapEx as % of Revenue 22.00% 21.56% 21.60% 22.00% 21.43% 22.00%
Total depreciation Expenses as % of Revenue 9.20% 9.45% 9.90% 10.23% 10.40% 10.64%
Amortization
Depreciation & Amortization (from cashflow statement) $1,158
less Depreciation only on PP&E (1)
$1,008
Amortization on Intangibles $150 $157 $160 $160 $161 $166 $169
as % of Total Revenue 1.19% 1.19% 1.19% 1.19% 1.19% 1.19% 1.19%
Notes(1): $1,008 = Accumulated Depreciated on PP&E in 2015 - Accumulated Depreciated on PP&E in 2014
(In Millions $USD)
Working Capital Schedule
0 1 2 3 4 5 6
2013A 2014A 2015A 3-Yr CAGR 2016F 2017F 2018F 2019F 2020F Projected CAGR Terminal Terminal Gorwth
Revenue $10,575 $12,134 $12,611 $13,181 $13,452 $13,426 $13,568 $13,930 $14,250
Cost of Transportation Services
(1)
$5,722 $6,092 $5,793 $6,479 $6,612 $6,599 $6,669 $6,847 $7,004
Material Consumped in Transport Services
(2)
$2,970 $3,444 $3,014 $3,531 $3,604 $3,597 $3,635 $3,732 $3,817
Account Recievables $815 $928 $878 $981 $1,001 $999 $1,009 $1,036 $1,060
Supplies & Raw Materials $274 $335 $355 $362 $369 $368 $372 $382 $366
Account Payables $1,477 $1,657 $1,556 $1,725 $1,760 $1,757 $1,776 $1,823 $1,900
A/R Turnover 13.0x 13.1x 14.4x 13.4x 13.4x 13.4x 13.4x 13.4x 13.4x
Days of Sales Outstanding (DSO) 28.1 Days 27.9 Days 25.4 Days 27.2 Days 27.2 Days 27.2 Days 27.2 Days 27.2 Days 27.2 Days
Transport. Material Turnover
(3)
10.8x 10.3x 8.5x 9.8x 9.8x 9.8x 9.8x 9.8x 10.4x
Days of Trans Material Consumption (DTMC) 33.7 Days 35.5 Days 43.0 Days 37.4 Days 37.4 Days 37.4 Days 37.4 Days 37.4 Days 35.0 Days
Account Payable Turnover
(4)
3.9x 3.7x 3.7x 3.8x 3.8x 3.8x 3.8x 3.8x 3.7x
Days of Paybales Outstanding (DPO) 94.2 Days 99.3 Days 98.0 Days 97.2 Days 97.2 Days 97.2 Days 97.2 Days 97.2 Days 99.0 Days
Notes: (1). Cost of Transp. Serv. = Labour and Fringe Benefits + Fuel + Casulty + Purchased Services & Materials+ Rent/Lease Expensens
(2). Material consumped in the Transportation Services = Fuel + Purchased Services & Materials
(3). Transport. Material Turnover = Materail Comsumped in Transport. Services ÷ Supplies & Raw Materials
(4). Account Payable Turnover = Cost of Transport. Services ÷ Account Payables
Net Workingn Capital -$845 -$923 -$328 -$201 -$231 $532 $501
Change in Net Working Capital -$78 -$328 $723 $97 $733 -$31
ADD CHECKER TO EACH DEBT / COVENANT
(In Millions $USD)
Debt Maturity Profile
0 1 2 3 4 5 6
2016F 2017F 2018F 2019F 2020F Projected CAGR Terminal Terminal Gorwth
Orignal Debt
Beginning Debt 8,985.0 7,543.0 6,685.0 5,956.0 5,191.0
less Debt Retirement (1,442.0) (858.0) (729.0) (765.0) (16.0)
Ending Debt 7,543.0 6,685.0 5,956.0 5,191.0 5,175.0
New Debt(flow) 3,153.7 3,023.0 2,104.3 1,705.0 1,413.1
Interest Expenses $315 $270 $231 $203 $176
Total Debt Total Amount
Wtd. Avg
Interest
$11,754 2.98%
Short-Term Debt Obligations Total 551
Wtd. Avg
Interest 1.26%
Interest Bears Types Max. Capacity Usage Interest Payable - CF
1.26% Revolvers (1)(2)Backstone
800+500 0 0
1.26% Bilaterl Letter of Credit Facilities 575 551 0.57855
Notes (1) Total revolver avaliable = $ 800 Mln commited + additional $500Mln negotiable
(2) Revolver is used as a backstone agaisnt the commercial paper issuance
Current Portion of L.T. Debt Total 331
Wtd. Avg
Interest 0.41%
Interest rate
0.41% Commercial Paper 800 331 33.93%
1.24% Account Receivable Securitization 450 0
Long-Term Senior Bonds Total 9508
Wtd. Avg
Coupon 4.90%
Wtd. Avg
Interest 2.87%
Coupon Terms Maturity Book Value W.A. Coup W.A. Interest
5.80% 10-year notes 2016-06-01 346 0.21% 1.48% 0.05%
1.45% 5-year notes 2016-12-15 415 0.06% 1.48% 0.06%
1.53% 3-year floating rate notes 2017-11-14 346 0.06% 1.51% 0.05%
5.85% 10-year notes 2017-11-15 346 0.21% 1.51% 0.05%
5.55% 10-year notes 2018-05-15 450 0.26% 1.53% 0.07%
6.80% 20-year notes 2018-07-15 277 0.20% 1.53% 0.04%
5.55% 10-year notes 2019-03-01 761 0.44% 1.53% 0.12%
2.75% 7-year notes 2021-02-18 250 0.07% 2.13% 0.06%
2.85% 10-year notes 2021-12-15 554 0.17% 2.13% 0.12%
2.25% 10-year notes 2022-11-15 346 0.08% 2.13% 0.08%

9. 7.63% 30-year debentures 2023-03-15 208 0.17% 2.52% 0.06%
2.95% 10-year notes 2024-11-21 484 0.15% 2.52% 0.13%
2.80% 10-year notes 2025-09-22 350 0.10% 3.26% 0.12%
6.90% 30-year notes 2028-07-15 657 0.48% 3.26% 0.23%
7.38% 30-year debentures 2031-10-15 277 0.22% 3.68% 0.11%
6.25% 30-year notes 2034-08-01 692 0.45% 3.89% 0.28%
6.20% 30-year notes 2036-06-01 623 0.41% 4.10% 0.27%
6.71% Puttable Reset Securities PURS 2036-07-15 346 0.24% 4.10% 0.15%
6.38% 30-year debentures 2037-11-15 415 0.28% 4.10% 0.18%
3.50% 30-year notes 2042-11-15 346 0.13% 4.18% 0.15%
4.50% 30-year notes 2043-11-07 346 0.16% 4.26% 0.16%
3.95% 30-year notes 2045-09-22 400 0.17% 4.26% 0.18%

10. 4.00% 50-year notes 2065-09-22 100 0.04% 5% 0.05%
7.70% 100-year debentures 2094-07-14 173 0.14% 5% 0.09%
Long-Term Subordinated Debt Total 842
Wtd. Avg
Interest 5.75%
5.75% Non-interest Bearing 90-year subordinated Notes2094-07-14 842
Capital Lease Total 522
Wtd. Avg
Interest 4.00%
4.00% 2016 223
4.00% 2017 174
4.00% 2018 9
4.00% 2019 10
4.00% 2020 16
4.00% 2021 Onwards 90
(In Millions $USD, Except Per Share Data)
Dividends & Share Repurchases / Issuances
0 1 2 3 4 5 6
2013A 2014A 2015A 3-Yr Avg. 2016F 2017F 2018F 2019F 2020F Projected CAGR Terminal Terminal Gorwth
Beginning # of Share Outstandings #809.4 #787.2 #762.7 #737.0 #716.5 #700.1 #686.9
Ending # of Share Outstandings #787.2 #762.7 #737.0 #716.5 #700.1 #686.9 #686.9
Dividend Paid Per Share $1.25 $1.50 $1.73 $1.90 $1.99 $2.09 $2.13
Total Dividend Paid to Common Shareholders $984 $1,162.45 $1,293.56 $1,379.05 $1,411.15 $1,450.75 $1,465.74
Share Repurchase #27.6 #22.4 #23.3 #24.5 #25.7 #20.6 #16.4 #13.2 #0.0
Weighted Avg. Buyback Price $50.65 $67.38 $75.20 $75.20 $75.20 $75.20 $75.20 $75.20 $75.20
Total Repurchase Amount $1,398 $1,509 $1,752 11.95% $1,840 $1,932 $1,545 $1,236 $989 $0
(In Millions $USD)
Income Tax Schedule
0 1 2 3 4 5 6
2013A 2014A 2015A 3-Yr Average 2016F 2017F 2018F 2019F 2020F Projected CAGR Terminal Terminal Gorwth
EBT $3,589 $4,360 $4,874 $3,865 $3,962 $3,933 $3,959 $4,075 $5,134
Income Tax Expenses (1)
$977 $1,193 $1,336 0.00% $1,056 $1,083 $1,075 $1,082 $1,114 $0 $1,403
Effective Tax rate 27.22% 27.36% 27.41% 27.33% 27.33% 27.33% 27.33% 27.33% 27.33% 0 27.33%
Defered Income Tax Liability $6,537 $6,834 $8,105 $8,524 $8,929 $9,319 $9,716 $10,098
YOY DTL Addition (2)
$297 $1,271 $419 $405 $390 $397 $382
(1) -(2) = Income Tax - Cash Flow ($896) ($65) ($637) ($678) ($685) ($685) ($732)