Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F | Form 40-F X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes | No X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes | No X |
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes | No X |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
1. | Press Release dated October 22, 2007 entitled, "CN reports Q3-2007 net income of C$485 million, or C$0.96 per diluted share, including C$0.03 per share benefit from favorable tax adjustments". |
2. |
Interim
Consolidated Financial Statements and Notes thereto (U.S.
GAAP)
|
3. |
Management’s
Discussion and
Analysis (U.S. GAAP)
|
4. |
Certificate
of
CEO
|
5. |
Certificate
of
CFO
|
North
America’s Railroad
|
·
|
Diluted
earnings per share of C$0.96, including a C$0.03 per share
benefit from favorable tax adjustments, increased two per cent
from the
year-earlier period.
|
·
|
Net
income of C$485 million, including a C$14-million benefit from
favorable tax adjustments, declined two per cent from net income
for the
same quarter of 2006.
|
·
|
Revenues
remained essentially flat at C$2,023 million, with several commodity
groups helping to offset significant weakness in forest
products.
|
·
|
Operating
income declined nine per cent to C$768 million, while CN’s operating
ratio increased by 3.5 points to 62.0 per
cent.
|
Contacts:
|
||
Media
|
Investment
Community
|
|
Mark
Hallman
|
Robert
Noorigian
|
|
Director
|
Vice-President
|
|
Communications,
Media & Eastern Region
|
Investor
Relations
|
|
(905)
669-3384
|
|
(514)
399-0052
|
Three
months ended September
30 |
Nine
months ended September
30 |
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Revenues
|
$ |
2,023
|
$ |
2,032
|
$ |
5,956
|
$ |
5,929
|
||||||||
Operating
expenses
|
||||||||||||||||
Labor
and
fringe benefits
|
446
|
420
|
1,361
|
1,349
|
||||||||||||
Purchased
services and material
|
247
|
250
|
786
|
756
|
||||||||||||
Depreciation
and amortization
|
165
|
157
|
504
|
483
|
||||||||||||
Fuel
|
251
|
235
|
719
|
665
|
||||||||||||
Equipment
rents
|
59
|
49
|
187
|
135
|
||||||||||||
Casualty
and
other
|
87
|
77
|
259
|
267
|
||||||||||||
Total
operating expenses
|
1,255
|
1,188
|
3,816
|
3,655
|
||||||||||||
Operating
income
|
768
|
844
|
2,140
|
2,274
|
||||||||||||
Interest
expense
|
(78 | ) | (82 | ) | (251 | ) | (232 | ) | ||||||||
Other
income
(loss)
|
2
|
(10 | ) |
7
|
(16 | ) | ||||||||||
Income
before
income taxes
|
692
|
752
|
1,896
|
2,026
|
||||||||||||
Income
tax
expense (Note 8)
|
(207 | ) | (255 | ) | (571 | ) | (438 | ) | ||||||||
Net
income
|
$ |
485
|
$ |
497
|
$ |
1,325
|
$ |
1,588
|
||||||||
Earnings
per share (Note 9)
|
||||||||||||||||
Basic
|
$ |
0.97
|
$ |
0.95
|
$ |
2.62
|
$ |
3.00
|
||||||||
Diluted
|
$ |
0.96
|
$ |
0.94
|
$ |
2.59
|
$ |
2.95
|
||||||||
Weighted-average
number of shares
|
||||||||||||||||
Basic
|
499.7
|
522.5
|
505.0
|
529.5
|
||||||||||||
Diluted
|
506.4
|
530.2
|
512.1
|
538.0
|
September
30
|
December
31
|
September
30
|
||||||||||
2007
|
2006
|
2006
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
Assets
|
||||||||||||
Current
assets:
|
||||||||||||
Cash
and cash
equivalents
|
$ |
214
|
$ |
179
|
$ |
56
|
||||||
Accounts
receivable
|
641
|
692
|
1,035
|
|||||||||
Material
and
supplies
|
206
|
189
|
205
|
|||||||||
Deferred
income taxes (Notes 2, 8)
|
69
|
84
|
80
|
|||||||||
Other
|
316
|
192
|
107
|
|||||||||
1,446
|
1,336
|
1,483
|
||||||||||
Properties
|
19,883
|
21,053
|
20,216
|
|||||||||
Intangible
and
other assets
|
1,576
|
1,615
|
976
|
|||||||||
Total
assets
|
$ |
22,905
|
$ |
24,004
|
$ |
22,675
|
||||||
Liabilities
and shareholders' equity
|
||||||||||||
Current
liabilities:
|
||||||||||||
Accounts
payable and accrued charges
|
$ |
1,205
|
$ |
1,823
|
$ |
1,671
|
||||||
Current
portion of long-term debt (Note 4)
|
293
|
218
|
151
|
|||||||||
Other
|
56
|
73
|
69
|
|||||||||
1,554
|
2,114
|
1,891
|
||||||||||
Deferred
income taxes (Notes 2, 8)
|
4,940
|
5,215
|
4,884
|
|||||||||
Other
liabilities and deferred credits
|
1,410
|
1,465
|
1,474
|
|||||||||
Long-term
debt
(Note 4)
|
5,342
|
5,386
|
5,164
|
|||||||||
|
||||||||||||
Shareholders'
equity:
|
||||||||||||
Common
shares
|
4,359
|
4,459
|
4,476
|
|||||||||
Accumulated
other comprehensive loss
|
(257 | ) | (44 | ) | (520 | ) | ||||||
Retained
earnings
|
5,557
|
5,409
|
5,306
|
|||||||||
9,659
|
9,824
|
9,262
|
||||||||||
Total
liabilities and shareholders' equity
|
$ |
22,905
|
$ |
24,004
|
$ |
22,675
|
Three
months ended
September
30
|
Nine months
ended
September
30
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Common
shares (1)
|
||||||||||||||||
Balance,
beginning of period
|
$ |
4,417
|
$ |
4,543
|
$ |
4,459
|
$ |
4,580
|
||||||||
Stock
options
exercised and other
|
16
|
8
|
83
|
90
|
||||||||||||
Share
repurchase programs (Note 4)
|
(74 | ) | (75 | ) | (183 | ) | (194 | ) | ||||||||
Balance,
end
of period
|
$ |
4,359
|
$ |
4,476
|
$ |
4,359
|
$ |
4,476
|
||||||||
Accumulated
other comprehensive loss
|
||||||||||||||||
Balance,
beginning of period
|
$ | (180 | ) | $ | (521 | ) | $ | (44 | ) | $ | (222 | ) | ||||
Other
comprehensive income (loss):
|
||||||||||||||||
Unrealized
foreign exchange gain (loss) on:
|
||||||||||||||||
Translation
of
the net investment in foreign operations
|
(381 | ) |
50
|
(914 | ) | (214 | ) | |||||||||
Translation
of
U.S. dollar-denominated long-term debt
|
||||||||||||||||
designated
as
a hedge of the net investment in U.S. subsidiaries
|
328
|
(44 | ) |
766
|
163
|
|||||||||||
Pension
and
other postretirement benefit plans:
|
||||||||||||||||
Amortization
of:
|
||||||||||||||||
Prior
service
cost (Note 6)
|
5
|
-
|
16
|
-
|
||||||||||||
Net
actuarial
loss (Note 6)
|
13
|
-
|
38
|
-
|
||||||||||||
Derivative
instruments:
|
||||||||||||||||
Decrease
in
unrealized holding gains on fuel
|
||||||||||||||||
derivative
instruments
|
-
|
(10 | ) |
-
|
(57 | ) | ||||||||||
Other
comprehensive loss before income taxes
|
(35 | ) | (4 | ) | (94 | ) | (108 | ) | ||||||||
Income
tax
recovery (expense)
|
(42 | ) |
5
|
(119 | ) | (190 | ) | |||||||||
Other
comprehensive income (loss)
|
(77 | ) |
1
|
(213 | ) | (298 | ) | |||||||||
Balance,
end
of period
|
$ | (257 | ) | $ | (520 | ) | $ | (257 | ) | $ | (520 | ) | ||||
Retained
earnings
|
||||||||||||||||
Balance,
beginning of period
|
$ |
5,554
|
$ |
5,212
|
$ |
5,409
|
$ |
4,891
|
||||||||
Adoption
of
new accounting pronouncements (Note 2)
|
-
|
-
|
95
|
-
|
||||||||||||
Restated
balance, beginning of period
|
5,554
|
5,212
|
5,504
|
4,891
|
||||||||||||
Net
income
|
485
|
497
|
1,325
|
1,588
|
||||||||||||
Share
repurchase programs (Note 4)
|
(378 | ) | (318 | ) | (956 | ) | (916 | ) | ||||||||
Dividends
|
(104 | ) | (85 | ) | (316 | ) | (257 | ) | ||||||||
Balance,
end
of period
|
$ |
5,557
|
$ |
5,306
|
$ |
5,557
|
$ |
5,306
|
(1)
|
During
the
three and nine months ended September 30, 2007, the Company issued
0.5
million and 2.9 million common shares, respectively, as a result
of stock
options exercised. At September 30, 2007, the Company had 494.5
million
common shares outstanding.
|
Three
months
ended September
30 |
Nine
months ended September
30 |
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Operating
activities
|
||||||||||||||||
Net
income
|
$ |
485
|
$ |
497
|
$ |
1,325
|
$ |
1,588
|
||||||||
Adjustments
to
reconcile net income to net cash provided from
|
||||||||||||||||
operating
activities:
|
||||||||||||||||
Depreciation
and amortization
|
165
|
159
|
506
|
486
|
||||||||||||
Deferred
income taxes
|
75
|
74
|
125
|
(20 | ) | |||||||||||
Other
changes
in:
|
||||||||||||||||
Accounts
receivable
|
(252 | ) | (71 | ) | (38 | ) | (420 | ) | ||||||||
Material
and
supplies
|
(6 | ) |
30
|
(26 | ) | (54 | ) | |||||||||
Accounts
payable and accrued charges
|
(65 | ) |
134
|
(471 | ) |
149
|
||||||||||
Other
net
current assets and liabilities
|
42
|
9
|
51
|
92
|
||||||||||||
Other
|
(14 | ) |
22
|
(40 | ) |
57
|
||||||||||
Cash
provided
from operating activities
|
430
|
854
|
1,432
|
1,878
|
||||||||||||
Investing
activities
|
||||||||||||||||
Property
additions
|
(350 | ) | (384 | ) | (897 | ) | (826 | ) | ||||||||
Other,
net
|
14
|
6
|
26
|
(39 | ) | |||||||||||
Cash
used by
investing activities
|
(336 | ) | (378 | ) | (871 | ) | (865 | ) | ||||||||
Financing
activities
|
||||||||||||||||
Issuance
of
long-term debt
|
1,841
|
-
|
3,325
|
3,125
|
||||||||||||
Reduction
of
long-term debt
|
(1,420 | ) | (153 | ) | (2,469 | ) | (2,855 | ) | ||||||||
Issuance
of
common shares due to exercise of stock options
|
||||||||||||||||
and
related excess tax benefits realized
|
14
|
4
|
73
|
78
|
||||||||||||
Repurchase
of
common shares
|
(452 | ) | (393 | ) | (1,139 | ) | (1,110 | ) | ||||||||
Dividends
paid
|
(104 | ) | (85 | ) | (316 | ) | (257 | ) | ||||||||
Cash
used by
financing activities
|
(121 | ) | (627 | ) | (526 | ) | (1,019 | ) | ||||||||
Net
increase (decrease) in cash and cash equivalents
|
(27 | ) | (151 | ) |
35
|
(6 | ) | |||||||||
Cash
and cash
equivalents, beginning of period
|
241
|
207
|
179
|
62
|
||||||||||||
Cash
and cash equivalents, end of period
|
$ |
214
|
$ |
56
|
$ |
214
|
$ |
56
|
||||||||
Supplemental
cash flow information
|
||||||||||||||||
Net
cash
receipts from customers and other
|
$ |
1,770
|
$ |
1,949
|
$ |
5,930
|
$ |
5,521
|
||||||||
Net
cash
payments for:
|
||||||||||||||||
Employee
services, suppliers and other expenses
|
(1,106 | ) | (924 | ) | (3,387 | ) | (3,097 | ) | ||||||||
Interest
|
(86 | ) | (86 | ) | (273 | ) | (227 | ) | ||||||||
Workforce
reductions
|
(8 | ) | (10 | ) | (24 | ) | (37 | ) | ||||||||
Personal
injury and other claims
|
(12 | ) | (18 | ) | (58 | ) | (60 | ) | ||||||||
Pensions
|
(27 | ) | (21 | ) | (50 | ) | (46 | ) | ||||||||
Income
taxes
|
(101 | ) | (36 | ) | (706 | ) | (176 | ) | ||||||||
Cash
provided
from operating activities
|
$ |
430
|
$ |
854
|
$ |
1,432
|
$ |
1,878
|
Vision
2008 Share Unit
|
Voluntary
Incentive
|
|||||||||||||||||||||||
RSUs
|
Plan
(Vision)
|
Deferral
Plan (VIDP)
|
||||||||||||||||||||||
In
millions
|
Nonvested
|
Vested
|
Nonvested
|
Vested
|
Nonvested
|
Vested
|
||||||||||||||||||
Outstanding
at
December 31, 2006
|
2.0
|
-
|
0.8
|
-
|
0.3
|
1.9
|
||||||||||||||||||
Granted
|
0.7
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Forfeited
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Vested
during
period
|
(0.2 | ) |
0.2
|
-
|
-
|
(0.1 | ) |
0.1
|
||||||||||||||||
Payout
|
-
|
(0.1 | ) |
-
|
-
|
-
|
(0.2 | ) | ||||||||||||||||
Conversion
into VIDP
|
-
|
(0.1 | ) |
-
|
-
|
-
|
0.1
|
|||||||||||||||||
Outstanding
at September 30, 2007
|
2.5
|
-
|
0.8
|
-
|
0.2
|
1.9
|
In millions, unless otherwise indicated |
RSUs
(1)
|
Vision
(1)
|
VIDP
(2)
|
Total
|
||||||||||||||||||||||||
Year of grant |
2007
|
2006
|
2005
|
2004
|
2005
|
2003
onwards
|
||||||||||||||||||||||
Stock-based
compensation expense
|
||||||||||||||||||||||||||||
recognized
over requisite service
period
|
||||||||||||||||||||||||||||
Nine
months
ended September 30, 2007
|
$ |
17
|
$ |
19
|
$ |
19
|
$ |
5
|
$ |
13
|
$ |
30
|
$ |
103
|
||||||||||||||
Nine
months
ended September 30, 2006
|
N/A
|
$ |
8
|
$ |
12
|
$ |
5
|
$ |
6
|
$ |
5
|
$ |
36
|
|||||||||||||||
Liability
outstanding
|
||||||||||||||||||||||||||||
September
30,
2007
|
$ |
17
|
$ |
40
|
$ |
53
|
$ |
4
|
$ |
20
|
$ |
115
|
$ |
249
|
||||||||||||||
December
31,
2006
|
N/A
|
$ |
21
|
$ |
34
|
$ |
8
|
$ |
8
|
$ |
99
|
$ |
170
|
|||||||||||||||
Fair
value per unit
|
||||||||||||||||||||||||||||
September
30,
2007
|
$ |
48.31
|
$ |
53.97
|
$ |
56.56
|
$ |
56.76
|
$ |
37.20
|
$ |
56.76
|
N/A
|
|||||||||||||||
Fair
value of awards vested during period
|
||||||||||||||||||||||||||||
Nine
months
ended September 30, 2007
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
5
|
$ |
-
|
$ |
3
|
$ |
8
|
||||||||||||||
Nine
months
ended September 30, 2006
|
N/A
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
2
|
$ |
2
|
|||||||||||||||
Nonvested
awards at September 30,
2007
|
||||||||||||||||||||||||||||
Unrecognized
compensation cost
|
$ |
15
|
$ |
14
|
$ |
5
|
$ |
5
|
$ |
9
|
$ |
10
|
$ |
58
|
||||||||||||||
Remaining
recognition period (years)
|
2.25
|
1.25
|
0.25
|
1.25
|
1.25
|
3.25
|
N/A
|
|||||||||||||||||||||
Assumptions
(3)
|
||||||||||||||||||||||||||||
Stock
price
($)
|
$ |
56.76
|
$ |
56.76
|
$ |
56.76
|
$ |
56.76
|
$ |
56.76
|
$ |
56.76
|
N/A
|
|||||||||||||||
Expected
stock
price volatility (4)
|
20% | 20% | 21% |
N/A
|
20% |
N/A
|
N/A
|
|||||||||||||||||||||
Expected
term
(years) (5)
|
2.25
|
1.25
|
0.25
|
N/A
|
1.25
|
N/A
|
N/A
|
|||||||||||||||||||||
Risk-free
interest rate (6)
|
4.07% | 4.20% | 4.20% |
N/A
|
4.13% |
N/A
|
N/A
|
|||||||||||||||||||||
Dividend
rate
($) (7)
|
$ |
0.84
|
$ |
0.84
|
$ |
0.84
|
N/A
|
$ |
0.84
|
N/A
|
N/A
|
(1)
|
Compensation
cost is based on the fair value of the awards at period-end using
the
lattice-based valuation model that uses the assumptions as presented
herein, except for time-vested
RSUs.
|
(2)
|
Compensation
cost is based on intrinsic
value.
|
(3)
|
Assumptions
used to determine fair value are at
period-end.
|
(4)
|
Based
on
the historical volatility of the Company's stock over a period
commensurate with the expected term of the
award.
|
(5)
|
Represents
the remaining period of time that awards are expected to be
outstanding.
|
(6)
|
Based
on
the implied yield available on zero-coupon government issues
with an
equivalent term commensurate with the expected term of the
awards.
|
(7)
|
Based
on
the annualized dividend rate.
|
Options
outstanding
|
||||||||||||||||
Number
|
Weighted-average
|
Weighted-average
|
Aggregate
|
|||||||||||||
of
options
|
exercise
price
|
years
to
expiration
|
intrinsic
value
|
|||||||||||||
In
millions
|
In
millions
|
|||||||||||||||
Outstanding
at
December 31, 2006 (1)
|
16.9
|
$
|
23.29
|
|||||||||||||
Granted
|
0.9
|
$
|
52.79
|
|||||||||||||
Forfeited
|
(0.1 | ) |
$
|
36.92
|
||||||||||||
Exercised
|
(2.9 | ) |
$
|
20.25
|
||||||||||||
Outstanding
at September 30, 2007 (1)
|
14.8
|
$
|
24.52
|
4.8
|
$
|
477
|
||||||||||
Exercisable
at September 30, 2007 (1)
|
12.5
|
$
|
21.15
|
4.2
|
$
|
446
|
(1)
|
Stock
options with a U.S. dollar exercise price have been translated
to Canadian
dollars using the foreign exchange rate in effect at the balance
sheet
date.
|
In
millions, unless otherwise indicated
|
||||||||||||||||||||
Year
of grant
|
2007
|
2006
|
2005
|
Prior
to
2005
|
Total
|
|||||||||||||||
Stock-based
compensation expense
|
||||||||||||||||||||
recognized
over requisite service period (1)
|
||||||||||||||||||||
Nine
months
ended September 30, 2007
|
$ |
6
|
$ |
1
|
$ |
2
|
$ |
-
|
$ |
9
|
||||||||||
Nine
months
ended September 30, 2006
|
N/A
|
$ |
7
|
$ |
2
|
$ |
3
|
$ |
12
|
|||||||||||
Fair
value per unit
|
||||||||||||||||||||
At
grant date
($)
|
$ |
13.36
|
$ |
13.80
|
$ |
9.19
|
$ |
8.61
|
N/A
|
|||||||||||
Fair
value of awards vested during period
|
||||||||||||||||||||
Nine
months
ended September 30, 2007
|
$ |
-
|
$ |
4
|
$ |
3
|
$ |
-
|
$ |
7
|
||||||||||
Nine
months
ended September 30, 2006
|
N/A
|
$ |
-
|
$ |
3
|
$ |
34
|
$ |
37
|
|||||||||||
Nonvested
awards at September 30, 2007
|
||||||||||||||||||||
Unrecognized
compensation cost
|
$ |
5
|
$ |
5
|
$ |
4
|
$ |
-
|
$ |
14
|
||||||||||
Remaining
recognition period (years)
|
3.4
|
2.4
|
1.3
|
-
|
N/A
|
|||||||||||||||
Assumptions
(1)
|
||||||||||||||||||||
Grant
price
($)
|
$ |
52.79
|
$ |
51.51
|
$ |
36.33
|
$ |
23.59
|
N/A
|
|||||||||||
Expected
stock
price volatility (2)
|
24% | 25% | 25% | 30% |
N/A
|
|||||||||||||||
Expected
term
(years) (3)
|
5.2
|
5.2
|
5.2
|
6.2
|
N/A
|
|||||||||||||||
Risk-free
interest rate (4)
|
4.12% | 4.04% | 3.50% |
5.13%
|
N/A
|
|||||||||||||||
Dividend
rate
($) (5)
|
$ |
0.84
|
$ |
0.65
|
$ |
0.50
|
$ |
0.30
|
N/A
|
(1)
|
Compensation
cost is based on the grant date fair value using the Black-Scholes
option-pricing model that uses the assumptions at the grant
date.
|
(2)
|
Based
on
the historical volatility of the Company's stock over a period
commensurate with the expected term of the
award.
|
(3)
|
Represents
the period of time that awards are expected to be outstanding.
The Company
uses historical data to estimate option exercise and employee
termination,
and groups of employees that have similar historical exercise
behavior are
considered separately.
|
(4)
|
Based
on
the implied yield available on zero-coupon government issues
with an
equivalent term commensurate with the expected term of the
awards.
|
(5)
|
Based
on
the annualized dividend rate.
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
In
millions
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Service
cost
|
$ |
38
|
$ |
29
|
$ |
114
|
$ |
109
|
||||||||
Interest
cost
|
186
|
180
|
557
|
538
|
||||||||||||
Expected
return on plan assets
|
(234 | ) | (227 | ) | (703 | ) | (680 | ) | ||||||||
Amortization
of prior service cost
|
5
|
5
|
15
|
14
|
||||||||||||
Amortization
of net actuarial loss
|
13
|
22
|
40
|
68
|
||||||||||||
Net
periodic benefit cost
|
$ |
8
|
$ |
9
|
$ |
23
|
$ |
49
|
||||||||
(b)
Components of net periodic benefit cost for postretirement
benefits
|
||||||||||||||||
Three
months ended
|
Nine
months ended
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
In
millions
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Service
cost
|
$ |
1
|
$ |
1
|
$ |
3
|
$ |
3
|
||||||||
Interest
cost
|
4
|
3
|
11
|
11
|
||||||||||||
Curtailment
|
-
|
-
|
(3 | ) |
-
|
|||||||||||
Amortization
of prior service cost
|
-
|
-
|
1
|
-
|
||||||||||||
Recognized
net
actuarial gain
|
-
|
-
|
(2 | ) | (4 | ) | ||||||||||
Net
periodic benefit cost
|
$ |
5
|
$ |
4
|
$ |
10
|
$ |
10
|
(i)
|
the
lack of specific technical information available with respect
to many
sites;
|
(ii)
|
the
absence of any government authority, third-party orders, or claims
with
respect to particular sites;
|
(iii)
|
the
potential for new or changed laws and regulations and for development
of
new remediation technologies and uncertainty regarding the timing
of the
work with respect to particular
sites;
|
(iv)
|
the
ability to recover costs from any third parties with respect
to particular
sites; and
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
September
30
|
September
30
|
|||||||||||||||
In
millions, except per share data
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Net
income
|
$ |
485
|
$ |
497
|
$ |
1,325
|
$ |
1,588
|
||||||||
Weighted-average
shares outstanding
|
499.7
|
522.5
|
505.0
|
529.5
|
||||||||||||
Effect
of stock options
|
6.7
|
7.7
|
7.1
|
8.5
|
||||||||||||
Weighted-average
diluted shares outstanding
|
506.4
|
530.2
|
512.1
|
538.0
|
||||||||||||
Basic
earnings per share
|
$ |
0.97
|
$ |
0.95
|
$ |
2.62
|
$ |
3.00
|
||||||||
Diluted
earnings per share
|
$ |
0.96
|
$ |
0.94
|
$ |