Note 2 - Operations and Segmentation

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Nature of Operations [Text Block]

2. 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:

Millions, for the Three Months Ended March 31,	2023		2022
Bulk	$	1,897	$	1,832
Industrial		2,017		1,921
Premium		1,742		1,687
Total freight revenues	$	5,656	$	5,440
Other subsidiary revenues		235		205
Accessorial revenues		151		201
Other		14		14
Total operating revenues	$	6,056	$	5,860

Although our revenues are principally derived from customers domiciled in the U.S., the ultimate points of origination 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 $712 million and $654 million for the three months ended March 31, 2023 and 2022, respectively.