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Operations and Segmentation | 9 Months Ended
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Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Operations and Segmentation | 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. The Company’s Chief Operating Decision Maker (CODM) is our Chief Executive Officer. The CODM assesses performance for our rail network and decides how to allocate resources based on net income as reported on our Consolidated Statements of Income. The measure of segment assets is reported on our Consolidated Statements of Financial Position as total assets. Our operating revenues are primarily derived from contracts with customers for the transportation of freight from origin to destination. 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. Freight revenues from each of our commodity groups, as described in the table below, includes revenues from shipments to and from Mexico, which amounted to $752 million and $724 million for the three months ended September 30, 2025 and 2024, respectively, and $2.2 billion and $2.3 billion for the nine months ended September 30, 2025 and 2024, respectively. Our significant segment expenses as monitored by the CODM are shown in the table below. This breakout of revenues and expenses is used by the CODM to monitor and assess the financial performance of our rail network by comparing actual results to prior years and plans.
| Three months ended September 30, |  | Nine months ended September 30,
Millions | 2025 | 2024 |  | 2025 | 2024
Bulk | $ | 1,930 |  | $ | 1,805 |  |  | $ | 5,667 |  | $ | 5,343 |
Industrial | 2,194 |  | 2,121 |  |  | 6,488 |  | 6,348 |
Premium | 1,803 |  | 1,842 |  |  | 5,306 |  | 5,331 |
Total freight revenues | $ | 5,927 |  | $ | 5,768 |  |  | $ | 17,461 |  | $ | 17,022 |
Other subsidiary revenues | 172 |  | 179 |  |  | 547 |  | 608 |
Accessorial revenues | 124 |  | 122 |  |  | 349 |  | 427 |
Other | 21 |  | 22 |  |  | 68 |  | 72 |
Total operating revenues | $ | 6,244 |  | $ | 6,091 |  |  | $ | 18,425 |  | $ | 18,129 |
Operating [a] | 1,711 |  | 1,727 |  |  | 5,080 |  | 5,066 |
Administrative [a] | 176 |  | 184 |  |  | 557 |  | 564 |
Locomotive fuel | 600 |  | 595 |  |  | 1,754 |  | 1,850 |
Acquisition-related (Note 18) | 41 |  | - |  |  | 42 |  | - |
Other segment items [b] | 549 |  | 567 |  |  | 1,706 |  | 1,669 |
Depreciation | 618 |  | 602 |  |  | 1,841 |  | 1,792 |
Other income, net | (96) |  | (87) |  |  | (297) |  | (282) |
Interest expense | 327 |  | 314 |  |  | 984 |  | 957 |
Income tax expense | 530 |  | 518 |  |  | 1,468 |  | 1,528 |
Net income | $ | 1,788 |  | $ | 1,671 |  |  | $ | 5,290 |  | $ | 4,985 |
[a]Operating and administrative includes compensation and benefits, purchased services and materials, equipment and other rents, non-locomotive fuel, and other expenses. [b]Other segment items includes car hire and leases, casualty costs, state and local taxes, subsidiary expense, and other overhead expense.
Operations and Segmentation | 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. The Company’s Chief Operating Decision Maker (CODM) is our Chief Executive Officer. The CODM assesses performance for our rail network and decides how to allocate resources based on net income as reported on our Consolidated Statements of Income. The measure of segment assets is reported on our Consolidated Statements of Financial Position as total assets. Our operating revenues are primarily derived from contracts with customers for the transportation of freight from origin to destination. 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. Freight revenues from each of our commodity groups, as described in the table below, includes revenues from shipments to and from Mexico, which amounted to $752 million and $724 million for the three months ended September 30, 2025 and 2024, respectively, and $2.2 billion and $2.3 billion for the nine months ended September 30, 2025 and 2024, respectively. Our significant segment expenses as monitored by the CODM are shown in the table below. This breakout of revenues and expenses is used by the CODM to monitor and assess the financial performance of our rail network by comparing actual results to prior years and plans.
| Three months ended September 30, |  | Nine months ended September 30,
Millions | 2025 | 2024 |  | 2025 | 2024
Bulk | $ | 1,930 |  | $ | 1,805 |  |  | $ | 5,667 |  | $ | 5,343 |
Industrial | 2,194 |  | 2,121 |  |  | 6,488 |  | 6,348 |
Premium | 1,803 |  | 1,842 |  |  | 5,306 |  | 5,331 |
Total freight revenues | $ | 5,927 |  | $ | 5,768 |  |  | $ | 17,461 |  | $ | 17,022 |
Other subsidiary revenues | 172 |  | 179 |  |  | 547 |  | 608 |
Accessorial revenues | 124 |  | 122 |  |  | 349 |  | 427 |
Other | 21 |  | 22 |  |  | 68 |  | 72 |
Total operating revenues | $ | 6,244 |  | $ | 6,091 |  |  | $ | 18,425 |  | $ | 18,129 |
Operating [a] | 1,711 |  | 1,727 |  |  | 5,080 |  | 5,066 |
Administrative [a] | 176 |  | 184 |  |  | 557 |  | 564 |
Locomotive fuel | 600 |  | 595 |  |  | 1,754 |  | 1,850 |
Acquisition-related (Note 18) | 41 |  | - |  |  | 42 |  | - |
Other segment items [b] | 549 |  | 567 |  |  | 1,706 |  | 1,669 |
Depreciation | 618 |  | 602 |  |  | 1,841 |  | 1,792 |
Other income, net | (96) |  | (87) |  |  | (297) |  | (282) |
Interest expense | 327 |  | 314 |  |  | 984 |  | 957 |
Income tax expense | 530 |  | 518 |  |  | 1,468 |  | 1,528 |
Net income | $ | 1,788 |  | $ | 1,671 |  |  | $ | 5,290 |  | $ | 4,985 |
[a]Operating and administrative includes compensation and benefits, purchased services and materials, equipment and other rents, non-locomotive fuel, and other expenses. [b]Other segment items includes car hire and leases, casualty costs, state and local taxes, subsidiary expense, and other overhead expense.

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