Opinion ID: 1188758
Heading Depth: 1
Heading Rank: 3

Heading: cost approach at 12-31-75

Text: 1. Net Investment in Railroad Property Used in Transportation Service Adjusted for Obsolescence Using Comparison of Operating Characteristics of Burlington Northern System as Compared to Standard or Super Blue Chip Factors: Factor Burlington % Burlington Number Operating Characteristic Northern Standard Northern to Standard ______ ________________________ __________ ________ ____________________ 1 Rate of Return 2.21% 7.59% 29.12% 2 Freight Traffic Density (Thousands) 3,298 9,473 34.81% 3 Load Factor 2,059 2,462 83.63% 4 Transportation Performance 95,084 124,649 76.28% 5 Operating Ratio 19.26% 32.00% 60.19% 6 Transportation Ratio 59.94% 68.58% 87.40% 7 Gross Profit Margin Before I.T. 4.27% 20.48% 20.85% 8 Gross Revenue Per Mile of Road $ 58,165 $165,238 35.20% Average of Factors for Burlington Northern (Weight of 2 to Factors 1, 2, 7 & 8) 45.62% Indicated Percent Obsolescence for Burlington Northern (100.00% - 45.62%) 54.38% (Thousands) II. Net Investment in Railroad Property Used in Transportation Service $ 2,438,838 Add: Net Book Value of Operating Property Leased from Others 220,959 ______________ Total Property Used in Transportation Service $ 2,659,797 Less: Depr. Investment in Licensed Vehicles 14,090 ______________ Property Used in Transportation Service Less Licensed Vehicles $ 2,645,707 Less: Obsolescence (54.38%) 1,438,735 ______________ Indicated System Value of Property Used in Transportation Service by Cost Approach $ 1,206,972 Add: Materials and Supplies 160,726 ______________ Indicated Value of Operating Property $ 1,367,698 Say $ 1,368,000 ==============