Note 3 - Operations and Segmentation

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Nature of Operations [Text Block]

3. Operations and Segmentation

The Railroad, along with its subsidiaries and rail affiliates, is our one reportable operating segment. Although we provide and analyze revenues by commodity group, we treat the financial results of the Railroad as one segment due to the integrated nature of our rail network. Our operating revenues are primarily derived from contracts with customers for the transportation of freight from origin to destination.

The following table represents a disaggregation of our freight and other revenues:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2022		2021		2022		2021
Bulk	$	1,813	$	1,648	$	3,645	$	3,160
Industrial		2,091		1,859		4,012		3,515
Premium		1,938		1,625		3,625		3,106
Total freight revenues	$	5,842	$	5,132	$	11,282	$	9,781
Other subsidiary revenues		233		180		438		357
Accessorial revenues		183		176		384		337
Other		11		16		25		30
Total operating revenues	$	6,269	$	5,504	$	12,129	$	10,505

Although our revenues are principally derived from customers domiciled in the U.S., the ultimate points of origin or destination for some products we transport are outside the U.S. Each of our commodity groups includes revenues from shipments to and from Mexico. Included in the above table are revenues from our Mexico business, which amounted to $681 million and $618 million, respectively, for the three months ended June 30, 2022 and 2021, and $1.3 billion and $1.2 billion, respectively, for the six months ended June 30, 2022 and 2021.