| Schedule of Cost and Expense |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter | | First Nine Months | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | ($ in millions) | | | | | | | | | | | | | Railway operating revenues (Note 3) | $ | 3,526 | | | $ | 3,103 | | | $ | 9,989 | | | $ | 9,206 | | | | | | | | | | | | | | | | | | | Railway operating expenses | | | | | | | | | | | | | Compensation and benefits | 753 | | | 738 | | | 2,237 | | | 2,169 | | | | | | | Purchased services | 433 | | | 414 | | | 1,286 | | | 1,224 | | | | | | | Equipment rents | 113 | | | 105 | | | 332 | | | 313 | | | | | | | Fuel | 420 | | | 237 | | | 1,081 | | | 700 | | | | | | | Depreciation | 363 | | | 348 | | | 1,073 | | | 1,040 | | | | | | | Materials | 111 | | | 104 | | | 318 | | | 302 | | | | | | | Claims | 87 | | | 75 | | | 209 | | | 200 | | | | | | | Other | 26 | | | (32) | | | 98 | | | 45 | | | | | | | Merger-related expenses | 42 | | | 15 | | | 145 | | | 15 | | | | | | | Restructuring and other charges | — | | | 12 | | | 6 | | | 22 | | | | | | | Eastern Ohio incident | 28 | | | (11) | | | 53 | | | (243) | | | | | | | | | | | | | | | | | | | Total railway operating expenses | 2,376 | | | 2,005 | | | 6,838 | | | 5,787 | | | | | | | | | | | | | | | | | | | Income from railway operations | 1,150 | | | 1,098 | | | 3,151 | | | 3,419 | | | | | | | | | | | | | | | | | | | Other income – net | 30 | | | 23 | | | 97 | | | 78 | | | | | | | Interest expense on debt | 193 | | | 197 | | | 587 | | | 597 | | | | | | | | | | | | | | | | | | | Income before income taxes | 987 | | | 924 | | | 2,661 | | | 2,900 | | | | | | | | | | | | | | | | | | | Income taxes | 228 | | | 213 | | | 621 | | | 671 | | | | | | | | | | | | | | | | | | | Net income | $ | 759 | | | $ | 711 | | | $ | 2,040 | | | $ | 2,229 | | | | | |
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