Note 3 - Operations and Segmentation

3 Months Ended

Mar. 31, 2024

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:

Millions, for the Three Months Ended March 31,	2024		2023
Bulk	$	1,817	$	1,897
Industrial		2,104		2,017
Premium		1,695		1,742
Total freight revenues	$	5,616	$	5,656
Other subsidiary revenues		217		235
Accessorial revenues		174		151
Other		24		14
Total operating revenues	$	6,031	$	6,056

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 $790 million and $712 million for the three months ended March 31, 2024 and 2023, respectively.