XML 19 R9.htm IDEA: XBRL DOCUMENT v3.22.2
Railway Operating Revenues
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Railway Operating Revenues Railway Operating Revenues
The following table disaggregates our revenues by major commodity group:
Second QuarterFirst Six Months
2022202120222021
($ in millions)
Merchandise:
Agriculture, forest and consumer products$624 $578 $1,197 $1,117 
Chemicals552 494 1,050 953 
Metals and construction420 402 795 772 
Automotive257 206 483 446 
Merchandise1,853 1,680 3,525 3,288 
Intermodal972 801 1,826 1,520 
Coal425 318 814 630 
Total$3,250 $2,799 $6,165 $5,438 

We recognize the amount of revenues to which we expect to be entitled for the transfer of promised goods or services to customers. A performance obligation is created when a customer under a transportation contract or public tariff submits a bill of lading to us for the transport of goods. These performance obligations are satisfied as the shipments move from origin to destination. As such, transportation revenues are recognized proportionally as a shipment moves, and related expenses are recognized as incurred. These performance obligations are generally short-term in nature with transit days averaging approximately one week or less for each commodity group. The customer has an unconditional obligation to pay for the service once the service has been completed. Estimated revenues associated with in-process shipments at period-end are recorded based on the estimated percentage of service completed. We had no material remaining performance obligations at June 30, 2022 and December 31, 2021.

We may provide customers ancillary services, such as switching, demurrage and other incidental activities, under their transportation contracts. These are distinct performance obligations that are recognized at a point in time when the services are performed or as contractual obligations are met. These revenues are included within each of the commodity groups and represent approximately 6% of total “Railway operating revenues” on the Consolidated Statements of Income for the second quarters of 2022 and 2021 and first six months of 2021 and 7% for the first six months of 2022.
Revenues related to interline transportation services that involve another railroad are reported on a net basis. Therefore, the portion of the amount that relates to another party is not reflected in revenues.

Under the typical terms of our freight contracts, payment for services is due within fifteen days of billing the customer, thus there are no significant financing components. “Accounts receivable – net” on the Consolidated Balance Sheets includes both customer and non-customer receivables as follows:

June 30,
2022		December 31, 2021
($ in millions)
Customer$924 $741 
Non-customer284 235 
  Accounts receivable – net$1,208 $976 

Non-customer receivables include non-revenue related amounts due from other railroads, governmental entities, and others. There were no non-current customer receivables at June 30, 2022, while “Other assets” on the Consolidated Balance Sheets included $23 million at December 31, 2021. We do not have any material contract assets or liabilities at June 30, 2022 and December 31, 2021.