Note 3 - Operations and Segmentation

9 Months Ended

Sep. 30, 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:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Millions	2024		2023		2024		2023
Bulk	$	1,805	$	1,766	$	5,343	$	5,420
Industrial		2,121		2,057		6,348		6,160
Premium		1,842		1,722		5,331		5,190
Total freight revenues	$	5,768	$	5,545	$	17,022	$	16,770
Other subsidiary revenues		179		226		608		681
Accessorial revenues		122		142		427		442
Other		22		28		72		67
Total operating revenues	$	6,091	$	5,941	$	18,129	$	17,960

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 $724 million and $673 million for the three months ended September 30, 2024 and 2023, respectively, and $2.3 billion and $2.1 billion for the nine months ended  September 30, 2024 and 2023, respectively.