v3.25.2
Operations and Segmentation
 6 Months Ended
Jun. 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 $751 million and $744 million for the three months ended June 30, 2025 and 2024, respectively, and $1.5 billion for both the six months ended June 30, 2025 and 2024.
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
June 30,		Six months ended
June 30,
Millions2025202420252024
Bulk$1,901 $1,721 $3,737 $3,538 
Industrial2,212 2,123 4,294 4,227 
Premium1,730 1,794 3,503 3,489 
Total freight revenues$5,843 $5,638 $11,534 $11,254 
Other subsidiary revenues181 212 375 429 
Accessorial revenues107 131 225 305 
Other23 26 47 50 
Total operating revenues$6,154 $6,007 $12,181 $12,038 
Operating [a]1,685 1,678 3,369 3,339 
Administrative [a]188 189 381 380 
Locomotive fuel563 610 1,154 1,255 
Other segment items [b]580 534 1,158 1,102 
Depreciation613 596 1,223 1,190 
Other income, net(123)(103)(201)(195)
Interest expense335 319 657 643 
Income tax expense437 511 938 1,010 
Net income$1,876 $1,673 $3,502 $3,314 
[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 $751 million and $744 million for the three months ended June 30, 2025 and 2024, respectively, and $1.5 billion for both the six months ended June 30, 2025 and 2024.
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
June 30,		Six months ended
June 30,
Millions2025202420252024
Bulk$1,901 $1,721 $3,737 $3,538 
Industrial2,212 2,123 4,294 4,227 
Premium1,730 1,794 3,503 3,489 
Total freight revenues$5,843 $5,638 $11,534 $11,254 
Other subsidiary revenues181 212 375 429 
Accessorial revenues107 131 225 305 
Other23 26 47 50 
Total operating revenues$6,154 $6,007 $12,181 $12,038 
Operating [a]1,685 1,678 3,369 3,339 
Administrative [a]188 189 381 380 
Locomotive fuel563 610 1,154 1,255 
Other segment items [b]580 534 1,158 1,102 
Depreciation613 596 1,223 1,190 
Other income, net(123)(103)(201)(195)
Interest expense335 319 657 643 
Income tax expense437 511 938 1,010 
Net income$1,876 $1,673 $3,502 $3,314 
[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.