Investments

12 Months Ended

Dec. 31, 2024


	December 31,
	2024		2023
	($ in millions)
Long-term investments:
Equity method investments:
Conrail	$	1,748	$	1,656
TTX	1,013		964
Other	423		428
Total equity method investments	3,184		3,048

COLI at net cash surrender value	161		774
Other investments	25		17

Total long-term investments	$	3,370	$	3,839

We had $605 million of borrowings against our COLI policies outstanding at December 31, 2024, with no amounts outstanding at December 31, 2023, which are included in the “Investment sales and other transactions” line item within investing activities in the Consolidated Statements of Cash Flows. In January 2025, we repaid all amounts that were borrowed against these policies at December 31, 2024.

Investment in Conrail

Through a limited liability company, we and CSX jointly own Conrail, whose primary subsidiary is CRC. We have a 58% economic and 50% voting interest in the jointly-owned entity, and CSX has the remainder of the economic and voting interests. We are amortizing the excess of the purchase price over Conrail’s net equity using the principles of purchase accounting, based primarily on the estimated useful lives of Conrail’s depreciable property and equipment, including the related deferred tax effect of the differences in book and tax accounting bases for such assets, as all of the purchase price at acquisition was allocable to Conrail’s tangible assets and liabilities. At December 31, 2024, our investment in Conrail exceeds our share of Conrail’s underlying net equity by $469 million.

CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of NSR and CSX Transportation, Inc. (CSXT). The costs of operating the Shared Assets Areas are borne by NSR and CSXT based on usage. In addition, NSR and CSXT pay CRC a fee for access to the Shared Assets Areas. “Purchased services and rents” and “Fuel” include expenses payable to CRC for operation of the Shared Assets Areas totaling $198 million in 2024, $164 million in 2023, and $156 million in 2022. Future payments for access fees due to CRC under the Shared Assets Areas agreements are as follows: $47 million in each of 2025 through 2028 and $21 million thereafter. We provide certain general and administrative support functions to Conrail, the fees for which are billed in accordance with several service-provider arrangements and approximate $7 million annually.

“Accounts payable” includes $243 million at December 31, 2024, and $198 million at December 31, 2023, due to Conrail for the operation of the Shared Assets Areas. “Other liabilities” includes $534 million at December 31, 2024 and 2023, respectively, for long-term advances from Conrail, maturing in 2050 that bear interest at an average rate of 1.31%.

Our equity in Conrail’s earnings, net of amortization, was $89 million for 2024, $70 million for 2023, and $58 million for 2022. These amounts partially offset the costs of operating the Shared Assets Areas and are included in “Purchased services and rents.” Equity in Conrail’s earnings is included in the “Other – net” line item within operating activities in the Consolidated Statements of Cash Flows.

Investment in TTX

We and six other North American railroads collectively own TTX, a railcar pooling company that provides its owner-railroads with standardized fleets of intermodal, automotive, and general use railcars at stated rates. We have a 19.78% ownership interest in TTX.

Expenses incurred for use of TTX equipment are included in “Purchased services and rents.” This amounted to $295 million, $274 million, and $256 million, respectively, for the years ended December 31, 2024, 2023 and 2022. Our equity in TTX’s earnings partially offsets these costs and totaled $48 million for 2024, $47 million for 2023 and $53 million for 2022. Equity in TTX’s earnings is included in the “Other – net” line item within operating activities in the Consolidated Statements of Cash Flows.