This excerpt taken from the KSU 10-K filed Feb 27, 2007.
Year Ended December 31, 2006, Compared with the Year Ended December 31, 2005
Net Income. Consolidated net income increased $139.9 million excluding the 2005 non-recurring VAT/Put settlement for the year ended December 31, 2006, compared to the same period in 2005. Including the $131.9 million VAT/Put settlement in 2005, consolidated net income increased $8 million. Operating income increased by $242.0 million primarily driven by targeted price increases and fuel surcharge, new and expanded existing business in both the U.S. and Mexico segments, and the integration of KCSM operations and a full year of consolidated operating results. Operating expenses increased by only 5% due to increased efficiencies from the integration of KCSM.
The following summarizes the consolidated income statement components of KCS (in millions).