Canadian National Railway pany(CNI) - 2021 Q4 - Annual Report

Financial Performance - The company's revenues for the year ended December 31, 2021, were $14,477 million, an increase from $13,819 million in 2020, representing a growth of approximately 4.8%[15] - Operating income for 2021 was $5,616 million, up from $4,777 million in 2020, reflecting an increase of about 17.6%[15] - Net income for the year was $4,892 million, compared to $3,562 million in 2020, indicating a growth of approximately 37.3%[15] - Earnings per share for 2021 were $6.90, compared to $5.01 in 2020, representing an increase of approximately 37.7%[15] - Total operating expenses for 2021 were $8,861 million, a decrease from $9,042 million in 2020, showing a reduction of about 2%[15] - The company reported a merger termination fee of $886 million in 2021, which was not present in the previous year[15] - Total freight revenues reached $13,888 million in 2021, up from $13,218 million in 2020, indicating a year-over-year increase of 5.1%[73] - The company recorded additional income of $705 million ($616 million after-tax) as a result of its strategic decision to bid for KCS, after accounting for all related expenses[68] Assets and Liabilities - Total assets increased to $48,538 million in 2021, up from $44,804 million in 2020, representing an increase of 4.9%[19] - Total current assets reached $3,426 million in 2021, up from $3,102 million in 2020, reflecting an increase of 10.5%[19] - Total liabilities decreased slightly to $25,794 million in 2021 from $25,775 million in 2020, indicating a marginal reduction[19] - Shareholders' equity increased to $22,744 million in 2021, up from $19,651 million in 2020, which is an increase of 15.5%[19] - The current portion of long-term debt decreased to $508 million in 2021 from $910 million in 2020, a reduction of 44.2%[19] - Total debt decreased from $13,868 million in 2020 to $13,439 million in 2021, with long-term debt at $11,977 million[96] Cash Flow and Investments - Net cash provided by operating activities increased to $6,971 million in 2021, up from $6,165 million in 2020, reflecting a growth of 13.1%[25] - Net cash used in investing activities was $2,873 million in 2021, a decrease from $2,946 million in 2020[25] - The company repurchased common shares amounting to $1,582 million in 2021, compared to $379 million in 2020, indicating a substantial increase in share buybacks[25] - The company incurred $2,891 million in property additions during 2021, slightly higher than $2,863 million in 2020[25] - The company has $70 million related to renewal options that are reasonably certain to be exercised included in lease liabilities[93] Taxation - The effective income tax expense for 2021 was $1,441 million, compared to $982 million in 2020, reflecting an increase in income tax adjustments and provincial and foreign income taxes[79] - The company had net operating loss carryforwards of $277 million for U.S. state tax purposes, expiring between 2022 and 2041, and $59 million for Canadian tax purposes, expiring between 2031 and 2041[83] - The carrying amount of assets held for sale was $260 million as of March 31, 2021, reflecting a recovery of $137 million on non-core lines[76] Pension and Employee Benefits - The projected benefit obligation at the beginning of 2021 was $19,499 million, decreasing to $17,813 million by the end of the year, reflecting a change of $1,686 million[128] - The net periodic benefit cost for pensions in 2021 was $(201) million, compared to $(141) million in 2020, indicating an increase in costs[132] - The actual return on plan assets for 2021 was $1,605 million, down from $2,230 million in 2020[130] - The expected benefit payments for pensions in 2022 are projected to be $1,053 million, with a gradual decrease to $1,032 million by 2026[134] Environmental and Legal Provisions - The Company's provision for specific environmental sites at the end of 2021 was $56 million, down from $59 million in 2020, with accruals of $23 million and payments of $26 million during the year[177] - Operating expenses related to environmental regulatory compliance for the year ended December 31, 2021 amounted to $27 million, an increase from $25 million in both 2020 and 2019[180] - The provision for personal injury and other claims in Canada decreased to $182 million in 2021 from $206 million in 2020, reflecting a decrease of $11 million due to actuarial valuations[170] Shareholder Activities - The Company repurchased 10.3 million common shares in 2021 at a weighted-average price of $153.69 per share, totaling $1,582 million[139] - The Board of Directors approved a new Normal Course Issuer Bid allowing for the repurchase of up to 42.0 million common shares from February 1, 2022, to January 31, 2023[192] - The share repurchase program was resumed in February 2021 after being suspended in March 2020 due to the COVID-19 pandemic[139]