v3.22.4
Segmented Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segmented information Segmented information
The Company manages its operations as one business segment over a single network that spans vast geographic distances and territories, with operations in Canada and the U.S. Financial information reported at this level, such as revenues, operating income, and cash flow from operations, is used by the Company's management, including its chief operating decision-maker, in evaluating financial and operational performance and allocating resources across CN's network.
The Company's strategic initiatives, which drive its operational direction, are developed and managed centrally by management and are communicated to its regional activity centers (the Western Region, Eastern Region and U.S. Region). The Company's management is responsible for, among others, CN's marketing strategy, the management of large customer accounts, overall planning and control of infrastructure and rolling stock, the allocation of resources, and other functions such as financial planning, accounting and treasury.
The role of each region is to manage the day-to-day service requirements within their respective territories and control direct costs incurred locally. Such cost control is required to ensure that pre-established efficiency standards set at the corporate level are met. The regions execute the overall corporate strategy and operating plan established by the Company's management, as the regions' management of throughput and control of direct costs does not serve as the platform for the Company's decision-making process. Approximately 94% of the Company's freight revenues are from national accounts for which freight traffic spans North America and touches various commodity groups. As a result, the Company does not manage revenues on a regional basis since a large number of the movements originate in one region and pass through and/or terminate in another region.
The regions also demonstrate common characteristics in each of the following areas:
•each region's sole business activity is the transportation of freight over the Company's extensive rail network;
•the regions service national accounts that extend over the Company's various commodity groups and across its rail network;
•the services offered by the Company stem predominantly from the transportation of freight by rail with the goal of optimizing the rail network as a whole; and
•the Company and its subsidiaries, not its regions, are subject to regulatory regimes in both Canada and the U.S.
For the years ended December 31, 2022, 2021, and 2020, no major customer accounted for more than 10% of total revenues and the largest freight customer represented less than 4% of total annual freight revenues.
The following tables provide information by geographic area for the years ended December 31, 2022, 2021 and 2020 and as at December 31, 2022 and 2021:
In millionsYear ended December 31,202220212020
Revenues
Canada$11,583 $9,955 $9,588 
U.S.5,524 4,522 4,231 
Total revenues$17,107 $14,477 $13,819 
Net income
Canada (1)
$3,581 $3,603 $2,615 
U.S.1,537 1,296 930 
Total net income (1)
$5,118 $4,899 $3,545 
In millionsDecember 31,20222021
Properties
Canada$24,069 $23,186 
U.S.19,468 17,992 
Total properties$43,537 $41,178 
(1)See Note 2 – Change in accounting policy for additional information.