Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
Document Transition Report | false |
Entity File Number | 1-8339 |
Entity Registrant Name | NORFOLK SOUTHERN CORP |
Entity Incorporation, State or Country Code | VA |
Entity Tax Identification Number | 52-1188014 |
Entity Address, Address Line One | 650 West Peachtree Street NW |
Entity Address, City or Town | Atlanta, |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30308-1925 |
City Area Code | (855) |
Local Phone Number | 667-3655 |
Title of 12(b) Security | Norfolk Southern Corporation Common Stock (Par Value $1.00) |
Trading Symbol | NSC |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 225,914,028 |
Entity Central Index Key | 0000702165 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Railway operating revenues | $ 3,004 | $ 3,132 |
Railway operating expenses | ||
Compensation and benefits | 736 | 690 |
Purchased services and rents | 528 | 496 |
Fuel | 284 | 315 |
Depreciation | 337 | 321 |
Materials and other | 215 | 212 |
Restructuring and other charges | 99 | 0 |
Eastern Ohio incident | 592 | 387 |
Total railway operating expenses | 2,791 | 2,421 |
Income from railway operations | 213 | 711 |
Other income – net | 18 | 56 |
Interest expense on debt | 201 | 175 |
Income before income taxes | 30 | 592 |
Income taxes | (23) | 126 |
Net income | $ 53 | $ 466 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.23 | $ 2.04 |
Diluted (in dollars per share) | $ 0.23 | $ 2.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 53 | $ 466 |
Other comprehensive loss, before tax: | ||
Pension and other postretirement expense | (2) | (5) |
Other comprehensive loss of equity investees | 0 | (1) |
Other comprehensive loss, before tax | (2) | (6) |
comprehensive loss | 0 | 2 |
Other comprehensive loss, net of tax | (2) | (4) |
Total comprehensive income | $ 51 | $ 462 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 652 | $ 1,568 |
Accounts receivable – net | 1,198 | 1,147 |
Materials and supplies | 270 | 264 |
Other current assets | 236 | 292 |
Total current assets | 2,356 | 3,271 |
Investments | 3,570 | 3,839 |
Properties less accumulated depreciation | 35,051 | 33,326 |
Other assets | 1,151 | 1,216 |
Total assets | 42,128 | 41,652 |
Current liabilities: | ||
Accounts payable | 1,506 | 1,638 |
Short-term debt | 400 | 0 |
Income and other taxes | 222 | 262 |
Other current liabilities | 1,315 | 728 |
Current maturities of long-term debt | 4 | 4 |
Total current liabilities | 3,447 | 2,632 |
Long-term debt | 17,179 | 17,175 |
Other liabilities | 1,767 | 1,839 |
Deferred income taxes | 7,199 | 7,225 |
Total liabilities | 29,592 | 28,871 |
Stockholders’ equity: | ||
Common stock, net of treasury shares | 227 | 227 |
Additional paid-in capital | 2,188 | 2,179 |
Accumulated other comprehensive loss | (322) | (320) |
Retained income | 10,443 | 10,695 |
Total stockholders’ equity | 12,536 | 12,781 |
Total liabilities and stockholders’ equity | $ 42,128 | $ 41,652 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 13,462 | $ 13,265 |
Common stock, par or stated value per share (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,350,000,000 | 1,350,000,000 |
Common stock, shares outstanding, net of treasury shares (in shares) | 225,914,028 | 225,681,254 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ 53 | $ 466 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation | 337 | 321 |
Deferred income taxes | (26) | (15) |
Gains and losses on properties | (1) | (4) |
Changes in assets and liabilities affecting operations: | ||
Accounts receivable | (51) | (22) |
Materials and supplies | (6) | (9) |
Other current assets | 33 | 12 |
Current liabilities other than debt | 560 | 480 |
Other – net | (60) | (56) |
Net cash provided by operating activities | 839 | 1,173 |
Cash flows from investing activities | ||
Property additions | (557) | (428) |
Acquisition of assets of CSR | (1,642) | 0 |
Property sales and other transactions | 32 | 20 |
Investment purchases | (1) | 0 |
Investment sales and other transactions | 324 | 17 |
Net cash used in investing activities | (1,844) | (391) |
Cash flows from financing activities | ||
Dividends | (305) | (307) |
Common stock transactions | (6) | (10) |
Purchase and retirement of common stock | 0 | (163) |
Proceeds from borrowings | 400 | 594 |
Debt repayments | 0 | (800) |
Net cash provided by (used in) financing activities | 89 | (686) |
Net increase (decrease) in cash and cash equivalents | (916) | 96 |
Cash and cash equivalents | ||
At beginning of year | 1,568 | 456 |
At end of period | 652 | 552 |
Supplemental disclosures of cash flow information | ||
Interest (net of amounts capitalized) | 182 | 129 |
Income taxes (net of refunds) | $ (2) | $ (1) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accum. Other Comprehensive Loss | Retained Income |
Balance at Beginning of Year at Dec. 31, 2022 | $ 12,733 | $ 230 | $ 2,157 | $ (351) | $ 10,697 |
Comprehensive income: | |||||
Net income | 466 | 466 | |||
Other comprehensive loss | (4) | (4) | |||
Total comprehensive income | 462 | ||||
Dividends on common stock | (307) | (307) | |||
Share repurchases | (163) | (1) | (6) | (156) | |
Stock-based compensation | 2 | 4 | (2) | ||
Balance at End of Period at Mar. 31, 2023 | 12,727 | 229 | 2,155 | (355) | 10,698 |
Balance at Beginning of Year at Dec. 31, 2023 | 12,781 | 227 | 2,179 | (320) | 10,695 |
Comprehensive income: | |||||
Net income | 53 | 53 | |||
Other comprehensive loss | (2) | (2) | |||
Total comprehensive income | 51 | ||||
Dividends on common stock | (305) | (305) | |||
Stock-based compensation | 9 | 9 | |||
Balance at End of Period at Mar. 31, 2024 | $ 12,536 | $ 227 | $ 2,188 | $ (322) | $ 10,443 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, dividends, per share, declared (in dollars per share) | $ 1.35 | $ 1.35 |
Railway Operating Revenues
Railway Operating Revenues | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Railway Operating Revenues | Railway Operating Revenues The following table disaggregates our revenues by major commodity group: First Quarter 2024 2023 ($ in millions) Merchandise: Agriculture, forest and consumer products $ 629 $ 653 Chemicals 527 541 Metals and construction 430 400 Automotive 277 284 Merchandise 1,863 1,878 Intermodal 745 814 Coal 396 440 Total $ 3,004 $ 3,132 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 March 31, 2024 and December 31, 2023. We may provide customers ancillary services, such as switching, demurrage and other incidental activities, under their transportation contracts. The revenues associated with these distinct performance obligations are recognized when the services are performed or as contractual obligations are met. These revenues are included within each of the commodity groups and represent approximately 4% and 6% of total “Railway operating revenues” on the Consolidated Statements of Income for the first quarters of 2024 and 2023, respectively. 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: March 31, December 31, 2023 ($ in millions) Customer $ 847 $ 882 Non-customer 351 265 Accounts receivable – net $ 1,198 $ 1,147 Non-customer receivables include non-revenue-related amounts due from other railroads, governmental entities, and others. We do not have any material contract assets or liabilities at March 31, 2024 and December 31, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation First Quarter 2024 2023 ($ in millions) Stock-based compensation expense $ 19 $ 11 Total tax benefit 5 6 During the first quarter of 2024, we granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows: First Quarter Granted Weighted-Average Grant-Date Fair Value Stock options 64,340 $ 79.65 RSUs 196,568 233.77 PSUs 52,600 260.07 Stock Options First Quarter 2024 2023 ($ in millions) Options exercised 97,217 66,811 Cash received upon exercise $ 9 $ 5 Related tax benefits realized 3 3 Restricted Stock Units RSUs granted primarily have a four-year ratable restriction period and will be settled through the issuance of shares of Norfolk Southern common stock (Common Stock). Certain RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to the regular quarterly dividends paid on Common Stock. First Quarter 2024 2023 ($ in millions) RSUs vested 156,651 149,122 Common Stock issued net of tax withholding 108,250 104,608 Related tax benefits realized $ — $ 1 Performance Share Units PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model. First Quarter 2024 2023 ($ in millions) PSUs earned 41,580 58,599 Common Stock issued net of tax withholding 26,056 40,255 Related tax benefits realized $ — $ — |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges During the first quarter of 2024, the Company executed a voluntary and an involuntary separation program that will result in a reduction to our nonagreement workforce. Through these programs, approximately 350 nonagreement employees have already or will be separated from service by May 2024. “Restructuring and other charges” in 2024 includes $64 million related to these programs, which primarily consists of separation payments to the impacted nonagreement employees. Additionally, we have evaluated the impact on our pension and other postretirement benefit plans (see Note 11). In March 2024, we appointed John Orr as Executive Vice President and Chief Operating Officer of the Company. “Restructuring and other charges” also includes $35 million of costs related to this appointment, including an |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIn the first quarter of 2024, our effective tax rate was (76.7)%, compared with 21.3% for the same period last year. The negative effective rate for the first quarter of 2024 is driven by low pre-tax income coupled with a $27 million deferred income tax benefit, the result of a subsidiary restructuring that reduced our estimated deferred state income tax rate. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the calculation of basic and diluted earnings per share: Basic Diluted First Quarter 2024 2023 2024 2023 ($ in millions, except per share amounts, Net income $ 53 $ 466 $ 53 $ 466 Dividend equivalent payments (1) (1) (1) — Income available to common stockholders $ 52 $ 465 $ 52 $ 466 Weighted-average shares outstanding 225.8 227.7 225.8 227.7 Dilutive effect of outstanding options and share-settled awards 0.4 0.6 Adjusted weighted-average shares outstanding 226.2 228.3 Earnings per share $ 0.23 $ 2.04 $ 0.23 $ 2.04 During the first quarters of 2024 and 2023, dividend equivalent payments were made to certain holders of stock options and RSUs. For purposes of computing basic earnings per share, dividend equivalent payments made to holders of stock options and RSUs were deducted from net income to determine income available to common stockholders. For purposes of computing diluted earnings per share, we evaluate on a grant-by-grant basis those stock options and RSUs receiving dividend equivalent payments under the two-class and treasury stock methods to determine which method is more dilutive for each grant. For those grants for which the two-class method was more dilutive, net income was reduced by dividend equivalent payments to determine income available to common stockholders. The dilution calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows: 0.1 million in both the first quarters ended March 31, 2024 and 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in the cumulative balances of “Accumulated other comprehensive loss” reported in the Consolidated Balance Sheets consisted of the following: Balance at Net Income Reclassification Balance at ($ in millions) Three months ended March 31, 2024 Pensions and other postretirement liabilities $ (292) $ — $ (2) $ (294) Other comprehensive loss of equity investees (28) — — (28) Accumulated other comprehensive loss $ (320) $ — $ (2) $ (322) Three months ended March 31, 2023 Pensions and other postretirement liabilities $ (319) $ — $ (4) $ (323) Other comprehensive loss of equity investees (32) — — (32) Accumulated other comprehensive loss $ (351) $ — $ (4) $ (355) |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program We did not repurchase shares of Common Stock under our stock repurchase program in the first three months of 2024, while we repurchased and retire |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Investments | Investments Investment in Conrail Through a limited liability company, we and CSX Corporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary is Consolidated Rail Corporation (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. Our investment in Conrail was $1.7 billion at both March 31, 2024 and December 31, 2023. CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of Norfolk Southern Railway Company (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 $52 million and $45 million for the first quarters of 2024 and 2023, respectively. Our equity in Conrail’s earnings, net of amortization, was $21 million and $16 million for the first quarters of 2024 and 2023, respectively. These amounts partially offset the costs of operating the Shared Assets Areas and are included in “Purchased services and rents.” “Other liabilities” includes $534 million at both March 31, 2024 and December 31, 2023 for long-term advances from Conrail, maturing in 2050 that bear interest at an average rate of 1.31%. Investment in TTX We and six other North American railroads collectively own TTX Company (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.” These expenses amounted to $74 million and $66 million for the first quarters of 2024 and 2023, respectively. Our equity in TTX’s earnings partially offsets these costs and totaled $13 million and $9 million for the first quarters of 2024 and 2023, respectively. |
Acquisition of Assets of Cincin
Acquisition of Assets of Cincinnati Southern Railway | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition of Assets of Cincinnati Southern Railway | Acquisition of Assets of Cincinnati Southern RailwayOn March 15, 2024, we completed the acquisition of a 337 mile railway line that extends from Cincinnati, Ohio to Chattanooga, Tennessee from the Cincinnati Southern Railway (CSR) for $1.7 billion (of which $0.1 billion was paid in 2023). We previously operated this line subject to an operating lease agreement, which was terminated upon the close of the transaction. The purchase price was allocated to the assets acquired in the transaction. The asset purchase is reflected in “Properties less accumulated depreciation” on the Consolidated Balance Sheet and is distinctly identified in the “Cash flows from investing activities” section of the Consolidated Statement of Cash Flows. Lease expense associated with the terminated agreement totaled $5 million and $6 million in the first quarters of 2024 and 2023, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt We have in place an accounts receivable securitization program with a maximum borrowing capacity of $400 million. Amounts under our accounts receivable securitization program are borrowed and repaid from time to time in the ordinary course for general corporate and cash management purposes. The term of our accounts receivable securitization program expires in May 2024. Amounts received under this facility are accounted for as borrowings. We had $400 million (at an average variable interest rate of 6.06%) outstanding under this program at March 31, 2024, which is included within “Short-term debt”, and no amounts outstanding under this program at December 31, 2023. We had fully utilized our borrowing capacity under the program at March 31, 2024, while we had $400 million of available borrowing capacity at December 31, 2023. Our accounts receivable securitization program was supported by $867 million and $903 million in receivables at March 31, 2024 and December 31, 2023, respectively, which are included in “Accounts receivable – net”. On April 15, 2024, we repaid $150 million of the amount outstanding at the end of the first quarter. In January 2024, we renewed and amended our $800 million credit agreement. The amended agreement expires in January 2029, and provides for borrowings at prevailing rates and includes covenants. We had no amounts outstanding under this facility at either March 31, 2024 or December 31, 2023, and we are in compliance with all of its covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2024 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits We have both funded and unfunded defined benefit pension plans covering eligible employees. We also provide specified health care benefits to eligible retired employees; these plans can be amended or terminated at our option. Under our self-insured retiree health care plan, for those participants who are not Medicare-eligible, certain health care expenses are covered for retired employees and their dependents, reduced by any deductibles, coinsurance, and, in some cases, coverage provided under other group insurance policies. Eligible retired participants and their spouses who are Medicare-eligible are not covered under the self-insured retiree health care plan, but instead are provided with an employer-funded health reimbursement account which can be used for reimbursement of health insurance premiums or eligible out-of-pocket medical expenses. Pension and postretirement benefit cost components were as follows: Pension Benefits Other Postretirement Benefits First Quarter 2024 2023 2024 2023 ($ in millions) Service cost $ 6 $ 6 $ 1 $ 1 Interest cost 27 27 3 4 Expected return on plan assets (51) (52) (3) (3) Amortization of net losses 4 1 — — Amortization of prior service benefit — — (6) (6) Net benefit $ (14) $ (18) $ (5) $ (4) The service cost component of defined benefit pension cost and postretirement benefit cost are reported within “Compensation and benefits” and all other components of net benefit cost are presented in “Other income – net” on the Consolidated Statements of Income. During the first quarter of 2024, we executed a voluntary and an involuntary separation program that will reduce our management workforce. Through these programs, approximately 350 nonagreement employees have already or will be separated from service by May 2024. We evaluated whether a plan curtailment had occurred for our pension and other postretirement benefit plans. While the reduction in our workforce did not result in a curtailment to our pension benefit plans, we will recognize a curtailment gain related to our other postretirement benefit plan. In accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 715, “ Compensation-Retirement Benefits, |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The fair values of “Cash and cash equivalents,” “Accounts receivable – net,” “Accounts payable,” and “Short-term debt,” approximate carrying values because of the short maturity of these financial instruments. The carrying value of corporate-owned life insurance (COLI) is recorded at cash surrender value and, accordingly, approximates fair value. There are no other assets or liabilities measured at fair value on a recurring basis at March 31, 2024 or December 31, 2023. The carrying amounts and estimated fair values, based on Level 1 inputs, of long-term debt consist of the following: March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair ($ in millions) Long-term debt, including current maturities $ (17,183) $ (16,053) $ (17,179) $ (16,631) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Eastern Ohio Incident Summary On February 3, 2023, a train operated by us derailed in East Palestine, Ohio. The derailed equipment included 38 railcars, 11 of which were non-Company-owned tank cars containing hazardous materials. Fires associated with the derailment threatened certain of the tank cars. There was concern about the risk that the contents of five of the tank cars carrying vinyl chloride might polymerize, which would have posed the risk of a catastrophic explosion. As a consequence, on February 6, 2023, the local incident commander (the East Palestine Fire Chief)—in consultation with the incident command that included, among others, federal, state and local officials and Norfolk Southern—opted to conduct a controlled vent and burn of five derailed tank cars, all of which contained vinyl chloride. This procedure involved creating holes in the five tank cars to drain the vinyl chloride into adjacent trenches that had been dug into the ground where such vinyl chloride was then burned, with any material remaining after burning of the vinyl chloride being remediated. The February 3rd derailment, the associated fire, and the resulting vent and burn of the tank cars containing vinyl chloride on February 6th is hereinafter referred to as the “Incident.” In response to the Incident, we have been working to clean the site safely and thoroughly, including those activities described in the Environmental Matters section below with respect to potentially impacted air, soil and water and to monitor for any impact on public health and the environment. We are working with federal, state, and local officials to mitigate impacts from the Incident, including, among other efforts, conducting environmental monitoring and clean-up activities (as more fully described below), operating a family assistance center to provide financial support to affected members of the East Palestine and surrounding communities, and committing additional financial support to the community . Financial Impact Although we cannot predict the final outcome or estimate the reasonably possible range of loss related to the Incident with certainty, we have accrued amounts for probable and reasonably estimable liabilities for those environmental and non-environmental matters described below. As of March 31, 2024 and December 31, 2023, we had accruals for probable and reasonably estimable liabilities principally associated with environmental matters and legal proceedings of $939 million and $464 million, respectively, which are discussed in further detail below. These amounts represent the difference between the recognized expense and cash expenditures (net of insurance recoveries) related to the Incident as of each respective date. From the inception of the Incident, we have recognized a total of $1.7 billion in expenses directly attributable to the Incident, which included $209 million in insurance recoveries made from claims on our insurance policies. We have also recorded a deferred tax asset of $248 million and $249 million at March 31, 2024 and December 31, 2023, respectively, related to the Incident expecting that certain expenses will be deductible for tax purposes in future periods or offset with insurance recoveries. Certain costs incurred thus far and related to the Incident may be recoverable under our insurance policies in effect at the date of the Incident or from third parties. Any additional amounts recoverable under our insurance policies or from third parties will be reflected in future periods in which recovery is considered probable. For additional information about our insurance coverage, see “Insurance” below. Environmental Matters – In response to the Incident, we have been working with federal, state, and local officials such as the U.S. Environmental Protection Agency (EPA), the Ohio EPA, the Pennsylvania Department of Environmental Protection (DEP), and the Columbiana County Health District to conduct environmental response and remediation activities, including but not limited to, air monitoring, indoor air quality screenings, municipal water and private water well testing, residential, commercial, and agricultural soil sampling, surface water and groundwater sampling, re-routing a local waterway around the affected site, capturing and shipping stormwater that enters the impacted derailment site to proper disposal facilities, and excavating and disposing of potentially affected soil at hazardous waste landfills or incinerators. The U.S. EPA issued a Unilateral Administrative Order (UAO) on February 21, 2023, containing various requirements, including the submission of numerous work plans to assess and remediate various environmental media and performance of certain removal actions at the affected site. On February 24, 2023, we submitted to the U.S. EPA our Notice of Intent to Comply with the UAO and are currently cooperating with U.S. EPA as well as the Ohio EPA and Pennsylvania DEP, pursuant to the UAO and the directives issued thereunder. On October 18, 2023, the U.S. EPA issued a second unilateral order under Section 311(c) of the Clean Water Act (CWA), requiring preparation of additional environmental work plans. We timely submitted our Notice of Intent to Comply with the CWA order and continue to cooperate with the U.S. EPA, as well as state agencies, in compliance with the CWA order. We are also subject to the following legal proceedings that principally relate to the environmental impact of the Incident: • The U.S. Department of Justice (DOJ) filed a civil complaint on behalf of the U.S. EPA (the DOJ Complaint) in the Northern District of Ohio (Eastern Division) seeking injunctive relief and civil penalties alleged for violations of the Clean Water Act and cost recovery under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The Ohio Attorney General (AG) also filed a lawsuit (the Ohio Complaint) in the Northern District of Ohio (Eastern Division) seeking damages for a variety of common law and environmental statutory claims under CERCLA and various state laws. The DOJ and Ohio AG cases have been consolidated for discovery purposes. We have filed an answer, and discovery is ongoing. On June 30, 2023, we filed third-party claims against certain railcar defendants and shippers involved in the Incident. The Court dismissed the third party claims on March 6, 2024, and on March 26, 2024, we filed a motion requesting the Court to enter partial final judgment as to the third party claims. In accordance with FASB ASC 410-30 “ Environmental Liabilities, ” as of March 31, 2024 and December 31, 2023, we had recognized probable and reasonably estimable liabilities in connection with the foregoing environmental matters of $292 million and $319 million, respectively, and which are primarily included in “Other current liabilities” on the Consolidated Balance Sheet. We recognized $60 million and $286 million of expense during the first quarters of 2024 and 2023 respectively, and made $87 million and $31 million in payments during the first quarters of 2024 and 2023 respectively, related to these matters. Our current estimate includes ongoing and future environmental cleanup activities and remediation efforts, governmental oversight costs (including those incurred by the U.S. EPA and the Ohio EPA), and other related costs, including those in connection with the DOJ Complaint (including potential civil penalties related to violations of the Clean Water Act). Our current estimates of future environmental cleanup and remediation liabilities related to the Incident may change over time due to various factors, including but not limited to, the nature and extent of required future cleanup and removal activities (including those resulting from soil, water, sediment, and air assessment and investigative activities that are currently being, and will continue to be, conducted at the site), and the extent and duration of governmental oversight, amongst other factors. As clean-up efforts progress and more information is available, we will review these estimates and revise as appropriate. Since the date of the Incident, we have recognized a total of $896 million in expenses related to environmental matters, of which $604 million has been paid. Legal Proceedings and Claims (Non-Environmental) – To date, numerous non-environmental legal actions have commenced with respect to the Incident, including those more specifically set forth below. • There is a consolidated putative class action pending in the Northern District of Ohio (Eastern Division) (the Ohio Class Action) in which plaintiffs allege various claims, including negligence, gross negligence, strict liability, and nuisance, and seeking as relief compensatory and punitive damages, medical monitoring and business losses. The putative class is defined by reference to a class area covering a 30-mile radius. On July 12, 2023, we filed a third-party complaint bringing in multiple parties involved in the Incident. Fact discovery ended on February 5, 2024. The Court denied in part and granted in part all motions to dismiss, as to the plaintiffs’ case and as to our third-party complaint, on March 13, 2024. On April 9, 2024, we announced that we have reached an agreement in principle to settle the Ohio Class Action for $600 million. The agreement in principle does not resolve, and expressly preserves, our third-party claims in the third-party complaint. Final settlement is subject to reducing the agreement to writing in a form acceptable to the parties and necessary court approval. If approved by the court, the terms of the agreement will resolve all class action claims within a 20-mile radius from the derailment and, for those residents who choose to participate, personal injury claims within a 10-mile radius from the derailment. Subject to final court approval, payments to class members under the settlement could begin by the end of this year. Another putative class action is pending in the Western District of Pennsylvania, brought by Pennsylvania school districts and students. On August 22, 2023, three school districts voluntarily dismissed their actions, that were then individual lawsuits. On the same day, six Pennsylvania school districts and students filed a putative class action lawsuit alleging negligence, strict liability, nuisance, and trespass, and seeking damages and health monitoring. On December 8, 2023, the school districts amended their complaint to add additional companies as defendants in the action. On February 23, 2024, we and the other defendants filed motions to dismiss. The school districts’ and students’ response is due by May 13, 2024. Combined with the Ohio Class Action, these lawsuits are collectively referred to herein as the Incident Lawsuits. In accordance with FASB ASC 450, “ Contingencies, ” as of March 31, 2024 and December 31, 2023, we had accruals for probable and reasonably estimable liabilities principally associated with the Incident Lawsuits and related contingencies of $676 million and $82 million, respectively. For the reasons set forth below, our estimated loss or range of loss with respect to the Incident Lawsuits may change from time to time, and it is reasonably possible that we will incur actual losses in excess of the amounts currently accrued and such additional amounts may be material. While we continue to work with parties with respect to potential resolution, no assurance can be given that we will be successful in doing so and we cannot predict the outcome of these matters. • We have received securities and derivative litigation and multiple shareholder document and litigation demand letters, including a securities class action lawsuit under the Securities Exchange Act of 1934 initially filed in the Southern District of Ohio alleging multiple securities law violations but since transferred to the Northern District of Georgia, a securities class action lawsuit under the Securities Act of 1933 (Securities Act) filed in the Southern District of New York alleging misstatements in association with our debt offerings, and three shareholder derivative complaints in Virginia state court asserting claims for breach of fiduciary duties, waste of corporate assets, and unjust enrichment in connection with safety of the Company's operations (collectively, the Shareholder Matters). On February 2, 2024, defendants filed a motion to dismiss the complaint in the Securities Act lawsuit; plaintiffs’ opposition to the motion to dismiss was filed on April 2, 2024. No responsive pleadings have been filed yet with respect to the other Shareholder Matters. With respect to the Incident-related litigation and regulatory matters, we record a liability for loss contingencies through a charge to earnings when we conclude that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated and disclose such liability if we conclude it to be material. Any adjustments to the recorded liability will be reflected in earnings in the periods in which such adjustments become known. Because the final outcome of any of these legal proceedings cannot be predicted with certainty, developments related to the progress of such legal proceedings or other unfavorable or unexpected developments or outcomes could result in additional costs or new or additionally accrued amounts that could be material to our results of operations in a particular year or quarter. In addition, if it is reasonably possible that we will incur Incident-related losses in excess of the amounts currently recorded as a loss contingency, we disclose the potential range of loss, if reasonably estimable, or we disclose that we cannot reasonably estimate such an amount at this time. For Incident-related litigation and regulatory matters where a loss may be reasonably possible, but not probable, or probable but not reasonably estimable, no accrual is established but the matter, if potentially material, is disclosed. Our estimates of probable losses and reasonably possible losses are based upon currently available information and involve significant judgement and a variety of assumptions, given that (1) these legal and regulatory proceedings are in early stages; (2) discovery may not be completed; (3) damages sought in these legal and regulatory proceedings can be unsubstantiated or indeterminate; (4) there are often significant facts in dispute; and/or (5) there is a wide range of possible outcomes. Accordingly, our estimated range of loss with respect to these matters may change from time to time, and actual losses may exceed current estimates. At this time, we are unable to estimate the possible loss or range of loss in excess of the amounts accrued with respect to the matters described above. The amounts recorded do not include any estimate of loss for which we believe a loss is either not probable or not reasonably estimable for any fines or penalties (in excess of the liabilities established for Clean Water Act-related civil penalties) that may be imposed as a result of the Incident Inquiries and Investigations, as more specifically set forth and defined below (the outcome of which are uncertain at this time). Inquiries and Investigations As set forth above, we are subject to inquiries and investigations by numerous federal, state, and local government authorities and regulatory agencies regarding the Incident, including but not limited to, the DOJ and the U.S. EPA, the Ohio EPA, the National Transportation Safety Board (NTSB), the Federal Railroad Administration (FRA), the Occupational Safety and Health Administration, the Ohio AG, and the Pennsylvania AG. Further details regarding the NTSB and FRA investigations are set forth below. We are cooperating with all inquiries and investigations, including responding to civil and criminal subpoenas and other requests for information (the aforementioned inquiries and investigations, as well as the civil and criminal subpoenas are collectively referred to herein as the Incident Inquiries and Investigations). Aside from the FRA Safety Assessment (defined and described below), the outcome of any current or future Incident Inquiries and Investigations is uncertain at this time, including any related fines, penalties or settlements. Therefore, our accruals for probable and reasonably estimable liabilities related to the Incident do not include estimates of the total amount that we may incur for any such fines, penalties or settlements. Subsequent to the Incident, investigators from the NTSB examined railroad equipment and track conditions; reviewed data from the signal system, wayside defect detectors, local surveillance cameras, and the lead locomotive’s event recorder and forward-facing and inward-facing image recorders; and completed certain interviews (the NTSB Investigation). The NTSB issued a preliminary report indicating that one of the cars involved in the derailment appeared to have a wheel bearing in the final stage of overheat failure moments before the derailment. Their preliminary report also indicates that the rail crew was operating the train within our rules; the rail crew operated the train below the track speed limit, the wayside heat detectors were operating as designed; and once the rail crew was alerted by the wayside detector, they immediately began to stop the train. The NTSB conducted a subsequent investigative field hearing in East Palestine, Ohio on June 22 and 23, 2023. The NTSB’s investigation remains ongoing. We expect the NTSB to issue a final report, with a probable cause determination and safety recommendations, in June 2024, with a follow on “safety culture” report expected for issuance later in 2024 or early 2025. Concurrent with the NTSB Investigation, the FRA is also investigating the Incident. Similar in scope to the NTSB Investigation, the FRA is examining railroad equipment, track conditions, hazardous materials train placement and routing, and emergency response (the FRA Incident Investigation). The FRA Incident Investigation may result in the assessment of civil penalties. In addition to the FRA Incident Investigation, the FRA completed a 60-day supplemental safety assessment (the FRA Safety Assessment). The FRA Safety Assessment included a review of findings from a previously completed 2022 system audit and an assessment of operational elements including, but not limited to: track, signal, and rolling stock maintenance, inspection and repair practices; protection of employees; communications between transportation departments and mechanical and engineering staff; operation control center procedures and dispatcher training. The overall scope of the FRA Safety Assessment was to examine our safety culture. The FRA issued a public report in early August and included its findings and recommended corrective actions. The FRA Incident Investigation remains ongoing. Other Commitments and Contingencies Lawsuits We and/or certain subsidiaries are defendants in numerous lawsuits and other claims relating principally to railroad operations. When we conclude that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, it is accrued through a charge to earnings and, if material, disclosed below. While the ultimate amount of liability incurred in any of these lawsuits and claims is dependent on future developments, in our opinion, the recorded liability is adequate to cover the future payment of such liability and claims. However, the final outcome of any of these lawsuits and claims cannot be predicted with certainty, and unfavorable or unexpected outcomes could result in additional accruals that could be significant to results of operations in a particular year or quarter. Any adjustments to the recorded liability will be reflected in earnings in the periods in which such adjustments become known. For lawsuits and other claims where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established but the matter, if potentially material, is disclosed below. We routinely review relevant information with respect to our lawsuits and other claims and update our accruals, disclosures and estimates of reasonably possible loss based on such reviews. In 2007, various antitrust class actions filed against us and other Class I railroads in various Federal district courts regarding fuel surcharges were consolidated in the District of Columbia by the Judicial Panel on Multidistrict Litigation. In 2012, the court certified the case as a class action. The defendant railroads appealed this certification, and the Court of Appeals for the District of Columbia vacated the District Court’s decision and remanded the case for further consideration. On October 10, 2017, the District Court denied class certification. The decision was upheld by the Court of Appeals on August 16, 2019. Since that decision, various individual cases have been filed in multiple jurisdictions and also consolidated in the District of Columbia. We intend to vigorously defend the cases. We do not believe the outcome of these proceedings will have a material effect on our financial position, results of operations, or liquidity. In 2018, a lawsuit was filed against one of our subsidiaries by the minority owner in a jointly-owned terminal railroad company in which our subsidiary has the majority ownership. The lawsuit alleged violations of various state laws and federal antitrust laws. On January 3, 2023, the court granted summary judgment to us on all of the compensatory claims but denied summary judgment for all equitable relief claims. On January 18, 2023, the court dismissed the federal equitable relief claims, leaving the state equitable relief claims as the sole remaining issue under consideration. On April 19, 2023, the court disposed of all remaining state equitable relief claims. The court’s dismissals were appealed and the case is currently before the United States Court of Appeals for the Fourth Circuit. We will continue to vigorously defend the lawsuit and, although it is reasonably possible we could incur a loss in the case, we believe that we will prevail. However, given that litigation is inherently unpredictable and subject to uncertainties, there can be no assurances that the final outcome of the litigation (including the related appeal) will not be material. Until such appeal is final, we cannot reasonably estimate the potential loss or range of loss associated with this matter. Casualty Claims Casualty claims include employee personal injury and occupational claims as well as third-party claims, all exclusive of legal costs. To aid in valuing our personal injury liability and determining the amount to accrue with respect to such claims during the year, we utilize studies prepared by an independent consulting actuarial firm. Job-related personal injury and occupational claims are subject to the Federal Employer’s Liability Act (FELA), which is applicable only to railroads. The variability inherent in FELA’s fault-based tort system could result in actual costs being different from the liability recorded. While the ultimate amount of claims incurred is dependent on future developments, in our opinion, the recorded liability is adequate to cover the future payments of claims and is supported by the most recent actuarial study. In all cases, we record a liability when the expected loss for the claim is both probable and reasonably estimable. Employee personal injury claims – Other than Incident-related matters noted above, the largest component of claims expense is employee personal injury costs. The independent actuarial firm we engage provides quarterly studies to aid in valuing our employee personal injury liability and estimating personal injury expense. The actuarial firm studies our historical patterns of reserving for claims and subsequent settlements, taking into account relevant outside influences. The actuarial firm provides the results of these analyses to aid in our estimate of the ultimate amount of liability. We adjust the liability quarterly based upon our assessment and the results of the study. The accuracy of our estimate of the liability is subject to inherent limitation given the difficulty of predicting future events such as jury decisions, court interpretations, or legislative changes. As a result, actual claim settlements may vary from the estimated liability recorded. Occupational claims – Occupational claims include injuries and illnesses alleged to be caused by exposures which occur over time as opposed to injuries or illnesses caused by a specific accident or event. Types of occupational claims commonly seen allege exposure to asbestos and other claimed toxic substances resulting in respiratory diseases or cancer. Many such claims are being asserted by former or retired employees, some of whom have not been employed in the rail industry for decades. The independent actuarial firm provides an estimate of the occupational claims liability based upon our history of claim filings, severity, payments, and other pertinent facts. The liability is dependent upon judgments we make as to the specific case reserves as well as judgments of the actuarial firm in the quarterly studies. Our estimate of ultimate loss includes a provision for those claims that have been incurred but not reported. This provision is derived by analyzing industry data and projecting our experience. We adjust the liability quarterly based upon our assessment and the results of the study. However, it is possible that the recorded liability may not be adequate to cover the future payment of claims. Adjustments to the recorded liability are reflected in operating expenses in the periods in which such adjustments become known. Third-party claims – We record a liability for third-party claims including those for highway crossing accidents, trespasser and other injuries, property damage, and lading damage. The actuarial firm assists us with the calculation of potential liability for third-party claims, except lading damage, based upon our experience including the number and timing of incidents, amount of payments, settlement rates, number of open claims, and legal defenses. We adjust the liability quarterly based upon our assessment and the results of the study. Given the inherent uncertainty in regard to the ultimate outcome of third-party claims, it is possible that the actual loss may differ from the estimated liability recorded. Environmental Matters We are subject to various jurisdictions’ environmental laws and regulations. We record a liability where such liability or loss is probable and reasonably estimable. Environmental specialists regularly participate in ongoing evaluations of all known sites and in determining any necessary adjustments to liability estimates. In addition to environmental claims associated with the Incident, our Consolidated Balance Sheets include liabilities for other environmental exposures of $56 million at March 31, 2024 and $60 million at December 31, 2023, of which $15 million is classified as a current liability at the end of both periods. At March 31, 2024, the liability represents our estimates of the probable cleanup, investigation, and remediation costs based on available information at 77 known locations and projects compared with 81 locations and projects at December 31, 2023. At March 31, 2024, nineteen sites accounted for $46 million of the liability, and no individual site was considered to be material. We anticipate that most of this liability will be paid out over five years; however, some costs will be paid out over a longer period. At eight locations, one or more of our subsidiaries in conjunction with a number of other parties have been identified as potentially responsible parties under CERCLA or comparable state statutes that impose joint and several liability for cleanup costs. We calculate our estimated liability for these sites based on facts and legal defenses applicable to each site and not solely on the basis of the potential for joint liability. As set forth above, with respect to known environmental sites (whether identified by us or by the U.S. EPA or comparable state authorities), estimates of our ultimate potential financial exposure for a given site or in the aggregate for all such sites can change over time because of the widely varying costs of currently available cleanup techniques, unpredictable contaminant recovery and reduction rates associated with available cleanup technologies, the likely development of new cleanup technologies, the difficulty of determining in advance the nature and full extent of contamination and each potential participant’s share of any estimated loss (and that participant’s ability to bear it), and evolving statutory and regulatory standards governing liability. The risk of incurring environmental liability for acts and omissions, past, present, and future, is inherent in the railroad business. Some of the commodities we transport, particularly those classified as hazardous materials, pose special risks that we work diligently to reduce. In addition, several of our subsidiaries own, or have owned, land used as operating property, or which is leased and operated by others, or held for sale. Because environmental problems that are latent or undisclosed may exist on these properties, there can be no assurance that we will not incur environmental liabilities or costs with respect to one or more of them, the amount and materiality of which cannot be estimated reliably at this time. Moreover, lawsuits and claims involving these and potentially other unidentified environmental sites and matters are likely to arise from time to time. The resulting liabilities could have a significant effect on financial position, results of operations, or liquidity in a particular year or quarter. Based on our assessment of the facts and circumstances now known, we believe we have recorded the probable and reasonably estimable costs for dealing with those environmental matters of which we are aware. Further, we believe that it is unlikely that any known matters, either individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, or liquidity. Labor Agreements Approximately 80% of our railroad employees are covered by collective bargaining agreements with various labor unions. Pursuant to the Railway Labor Act, these agreements remain in effect until new agreements are reached, or until the bargaining procedures mandated by the Railway Labor Act are completed. Moratorium provisions in the labor agreements govern when the railroads and unions may propose changes to the agreements. We largely bargain nationally in concert with other major railroads, represented by the National Carriers’ Conference Committee. The latest round of national bargaining concluded in December 2022, when agreements were either ratified or enacted through legislative action for all of our unions. With the conclusion of national bargaining, neither party can compel mandatory bargaining around any new proposals until November 1, 2024. Insurance We purchase insurance covering legal liabilities for bodily injury and property damage to third parties. Our current liability insurance provides limits for approximately 93% of covered losses above $75 million and below $734 million per occurrence and/or policy year. In addition, we purchase insurance for damage to property owned by us or in our care, custody, or control. Our current property insurance provides limits for approximately 82% of covered losses above $75 million and below $275 million per occurrence and/or policy year. Insurance coverage with respect to the Incident is subject to certain conditions, including but not limited to our insurers’ reservation of rights to further investigate and contest coverage, the express restrictions and sub-limits of coverage, and various policy exclusions, including those for some governmental fines or penalties. Some (re)insurers have questioned certain payments we have made, for example, as part of our effort to respond to, mitigate, and compensate for the impact to the community and affected residents and businesses. We are pursuing coverage with respect to the Incident, and we have recognized $209 million in insurance recoveries (including $108 million during the first quarter of 2024), principally from excess liability (re)insurers. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ” This update requires additional reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses and information used to assess performance. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We did not early adopt the standard and are currently evaluating the effect on our financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ” This update requires additional disclosures including greater disaggregation of information in the reconciliation of the statutory rate to the effective rate and income taxes paid disaggregated by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024. We will not early adopt the standard and are currently evaluating the effect on our financial statement disclosures. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 53 | $ 466 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ” This update requires additional reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses and information used to assess performance. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We did not early adopt the standard and are currently evaluating the effect on our financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ” This update requires additional disclosures including greater disaggregation of information in the reconciliation of the statutory rate to the effective rate and income taxes paid disaggregated by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024. We will not early adopt the standard and are currently evaluating the effect on our financial statement disclosures. |
Railway Operating Revenues (Tab
Railway Operating Revenues (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenues by major commodity group: First Quarter 2024 2023 ($ in millions) Merchandise: Agriculture, forest and consumer products $ 629 $ 653 Chemicals 527 541 Metals and construction 430 400 Automotive 277 284 Merchandise 1,863 1,878 Intermodal 745 814 Coal 396 440 Total $ 3,004 $ 3,132 |
Schedule of Accounts Receivable | “Accounts receivable – net” on the Consolidated Balance Sheets includes both customer and non-customer receivables as follows: March 31, December 31, 2023 ($ in millions) Customer $ 847 $ 882 Non-customer 351 265 Accounts receivable – net $ 1,198 $ 1,147 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Cost | First Quarter 2024 2023 ($ in millions) Stock-based compensation expense $ 19 $ 11 Total tax benefit 5 6 |
Schedule of LTIP Awards | During the first quarter of 2024, we granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows: First Quarter Granted Weighted-Average Grant-Date Fair Value Stock options 64,340 $ 79.65 RSUs 196,568 233.77 PSUs 52,600 260.07 |
Schedule of Cash Proceeds Received from Share-Based Payment Awards | First Quarter 2024 2023 ($ in millions) Options exercised 97,217 66,811 Cash received upon exercise $ 9 $ 5 Related tax benefits realized 3 3 |
Schedule of Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | First Quarter 2024 2023 ($ in millions) RSUs vested 156,651 149,122 Common Stock issued net of tax withholding 108,250 104,608 Related tax benefits realized $ — $ 1 |
Schedule of Share-Based Compensation, Activity | First Quarter 2024 2023 ($ in millions) PSUs earned 41,580 58,599 Common Stock issued net of tax withholding 26,056 40,255 Related tax benefits realized $ — $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Calculation | The following table sets forth the calculation of basic and diluted earnings per share: Basic Diluted First Quarter 2024 2023 2024 2023 ($ in millions, except per share amounts, Net income $ 53 $ 466 $ 53 $ 466 Dividend equivalent payments (1) (1) (1) — Income available to common stockholders $ 52 $ 465 $ 52 $ 466 Weighted-average shares outstanding 225.8 227.7 225.8 227.7 Dilutive effect of outstanding options and share-settled awards 0.4 0.6 Adjusted weighted-average shares outstanding 226.2 228.3 Earnings per share $ 0.23 $ 2.04 $ 0.23 $ 2.04 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in the cumulative balances of “Accumulated other comprehensive loss” reported in the Consolidated Balance Sheets consisted of the following: Balance at Net Income Reclassification Balance at ($ in millions) Three months ended March 31, 2024 Pensions and other postretirement liabilities $ (292) $ — $ (2) $ (294) Other comprehensive loss of equity investees (28) — — (28) Accumulated other comprehensive loss $ (320) $ — $ (2) $ (322) Three months ended March 31, 2023 Pensions and other postretirement liabilities $ (319) $ — $ (4) $ (323) Other comprehensive loss of equity investees (32) — — (32) Accumulated other comprehensive loss $ (351) $ — $ (4) $ (355) |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Pension and Other Postretirement Benefit Cost Components | Pension and postretirement benefit cost components were as follows: Pension Benefits Other Postretirement Benefits First Quarter 2024 2023 2024 2023 ($ in millions) Service cost $ 6 $ 6 $ 1 $ 1 Interest cost 27 27 3 4 Expected return on plan assets (51) (52) (3) (3) Amortization of net losses 4 1 — — Amortization of prior service benefit — — (6) (6) Net benefit $ (14) $ (18) $ (5) $ (4) |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values | The carrying amounts and estimated fair values, based on Level 1 inputs, of long-term debt consist of the following: March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair ($ in millions) Long-term debt, including current maturities $ (17,183) $ (16,053) $ (17,179) $ (16,631) |
Railway Operating Revenues - Di
Railway Operating Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 3,004 | $ 3,132 |
Merchandise | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,863 | 1,878 |
Merchandise | Agriculture, forest and consumer products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 629 | 653 |
Merchandise | Chemicals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 527 | 541 |
Merchandise | Metals and construction | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 430 | 400 |
Merchandise | Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 277 | 284 |
Intermodal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 745 | 814 |
Coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 396 | $ 440 |
Railway Operating Revenues - Na
Railway Operating Revenues - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Revenue, payment terms | 15 days | ||
Contract assets | $ 0 | $ 0 | |
Contract liabilities | $ 0 | $ 0 | |
Accessorial Services | |||
Disaggregation of Revenue [Line Items] | |||
Accessorial services percent of total railway operating revenues | 4% | 6% |
Railway Operating Revenues - Sc
Railway Operating Revenues - Schedule of Account Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounts receivable – net | $ 1,198 | $ 1,147 |
Customer | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounts receivable – net | 847 | 882 |
Non-customer | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounts receivable – net | $ 351 | $ 265 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense and Related Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 19 | $ 11 |
Total tax benefit | $ 5 | $ 6 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Grants and Weighted-Average Grant-Date Fair Values (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Stock options | |
Granted | |
Stock options (in shares) | shares | 64,340 |
Weighted-Average Grant-Date Fair Value | |
Stock options (in dollars per shares) | $ / shares | $ 79.65 |
RSUs | |
Granted | |
Other than stock options (in shares) | shares | 196,568 |
Weighted-Average Grant-Date Fair Value | |
Other than stock options (in dollars per share) | $ / shares | $ 233.77 |
PSUs | |
Granted | |
Other than stock options (in shares) | shares | 52,600 |
Weighted-Average Grant-Date Fair Value | |
Other than stock options (in dollars per share) | $ / shares | $ 260.07 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Options Exercised, Cash Received, and Related Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Options exercised (in shares) | 97,217 | 66,811 |
Cash received upon exercise | $ 9 | $ 5 |
Related tax benefits realized | $ 3 | $ 3 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 4 years |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards measurement cycle (in years) | 3 years |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of RSU Activity (Details) - Restricted Stock Units (RSUs) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs vested (in shares) | 156,651 | 149,122 |
Common Stock issued net of tax withholding (in shares) | 108,250 | 104,608 |
Related tax benefits realized | $ 0 | $ 1 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of PSU Activity (Details) - PSUs - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
PSUs earned (in shares) | 41,580 | 58,599 |
Common Stock issued net of tax withholding (in shares) | 26,056 | 40,255 |
Related tax benefits realized | $ 0 | $ 0 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) employee | |
Restructuring Cost and Reserve [Line Items] | ||
Expected number of positions eliminated | employee | 350 | |
Restructuring and other charges | $ 64 | |
Chief Operating Officer | ||
Restructuring Cost and Reserve [Line Items] | ||
Other employee-related cost | $ 35 | |
Payment for other commercial considerations | $ 25 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (76.70%) | 21.30% |
Deferred income tax benefit result of a subsidiary restructuring | $ 27 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income | $ 53 | $ 466 |
Dividend equivalent payments, basic | (1) | (1) |
Dividend equivalent payments, diluted | (1) | 0 |
Income available to common stockholders, basic | 52 | 465 |
Income available to common stockholders, diluted | $ 52 | $ 466 |
Weighted-average shares outstanding (in shares) | 225.8 | 227.7 |
Dilutive effect of outstanding options and share-settled awards (in shares) | 0.4 | 0.6 |
Adjusted weighted-average shares outstanding (in shares) | 226.2 | 228.3 |
Basic (in dollars per share) | $ 0.23 | $ 2.04 |
Diluted (in dollars per share) | $ 0.23 | $ 2.04 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 | 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Year | $ 12,781 | $ 12,733 |
Net Income | 0 | 0 |
Reclassification Adjustments | (2) | (4) |
Balance at End of Period | 12,536 | 12,727 |
Accum. Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Year | (320) | (351) |
Balance at End of Period | (322) | (355) |
Pensions and other postretirement liabilities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Year | (292) | (319) |
Net Income | 0 | 0 |
Reclassification Adjustments | (2) | (4) |
Balance at End of Period | (294) | (323) |
Other comprehensive loss of equity investees | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Year | (28) | (32) |
Net Income | 0 | 0 |
Reclassification Adjustments | 0 | 0 |
Balance at End of Period | $ (28) | $ (32) |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Stock repurchased during period (in shares) | 0 | |
Stock repurchased and retired during period (in shares) | 600,000 | |
Stock repurchased and retired during period, cost | $ 163 |
Investments (Details)
Investments (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) railroad | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Schedule of Investments [Line Items] | |||
Other liabilities | $ 1,767 | $ 1,839 | |
Number of railroads | railroad | 6 | ||
Purchased services and rents | $ 528 | $ 496 | |
Conrail, Economic | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 58% | ||
Conrail, Voting | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 50% | ||
Conrail Inc | |||
Schedule of Investments [Line Items] | |||
Equity method investments | $ 1,700 | 1,700 | |
Expenses for operation of the Shared Assets Areas | 52 | 45 | |
Equity in the earnings of investee | 21 | $ 16 | |
Other liabilities | $ 534 | $ 534 | |
Due to affiliate, average interest rate | 1.31% | 1.31% | |
TTX Company | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 19.78% | ||
Equity in the earnings of investee | $ 13 | $ 9 | |
Purchased services and rents | $ 74 | $ 66 |
Acquisition of Assets of Cinc_2
Acquisition of Assets of Cincinnati Southern Railway (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 15, 2024 USD ($) mi | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Asset Acquisition [Line Items] | ||||
Lease expense | $ 5 | $ 6 | ||
March 2024 Railway Purchase | ||||
Asset Acquisition [Line Items] | ||||
Number of miles railway line purchased | mi | 337 | |||
Personal property transaction amount | $ 1,700 | |||
Payments to acquire productive assets | $ 100 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | |||
Apr. 15, 2024 | Jan. 31, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Accounts receivable securitization balance | $ 400,000,000 | $ 0 | ||
$800 Million Credit Agreement Expiring In January 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 800,000,000 | |||
Long-term line of credit | 0 | 0 | ||
Securitization Borrowings | ||||
Debt Instrument [Line Items] | ||||
Accounts receivable securitization program, maximum borrowing capacity | $ 400,000,000 | |||
Average interest rate of borrowings outstanding | 6.06% | |||
Available borrowing capacity | 400,000,000 | |||
Accounts receivable securitization program | $ 867,000,000 | $ 903,000,000 | ||
Securitization Borrowings | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 150,000,000 | |||
Unsecured Debt | Delayed Draw Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 1,000,000,000 | |||
Long-term line of credit | $ 0 | |||
Debt term | 364 days |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 6 | $ 6 |
Interest cost | 27 | 27 |
Expected return on plan assets | (51) | (52) |
Amortization of net losses | 4 | 1 |
Amortization of prior service benefit | 0 | 0 |
Net benefit | (14) | (18) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 3 | 4 |
Expected return on plan assets | (3) | (3) |
Amortization of net losses | 0 | 0 |
Amortization of prior service benefit | (6) | (6) |
Net benefit | $ (5) | $ (4) |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefits - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 employee | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Expected number of positions eliminated | 350 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ (17,183) | $ (17,179) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, including current maturities | $ (16,053) | $ (16,631) |
Commitments and Contingencies -
Commitments and Contingencies - Eastern Ohio Incident (Details) $ in Millions | 3 Months Ended | 14 Months Ended | ||||
Aug. 22, 2023 school_District | Mar. 31, 2024 USD ($) complaint mi | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) complaint mi | Dec. 31, 2023 USD ($) | Feb. 03, 2023 railcar | |
Eastern Ohio Incident | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental matters liabilities | $ 292 | $ 292 | $ 319 | |||
Environmental remediation expense | 60 | $ 286 | 896 | |||
Payments for environmental liabilities | 87 | $ 31 | 604 | |||
Eastern Ohio Incident | ||||||
Loss Contingencies [Line Items] | ||||||
Number of railcars derailed | railcar | 38 | |||||
Number of non-Company-owned tank cars contained hazardous materials | railcar | 11 | |||||
Number of tank cars with risk of catastrophic explosion | railcar | 5 | |||||
Accrual for loss contingencies associated with environmental matters and legal proceedings | 939 | 939 | 464 | |||
East Ohio incident expense, net | 1,700 | |||||
Insurance recoveries received | 108 | 209 | ||||
Deferred tax asset, expenses deductible for tax purposed in future periods or offset with insurance recoveries | $ 248 | $ 248 | 249 | |||
Non-environmental legal actions, mile radius of class area | mi | 30 | 30 | ||||
Litigation settlement, amount agreed and awarded to other party | $ 600 | |||||
Litigation settlement, Non-environmental legal actions, mile radius of all class action claims | mi | 20 | 20 | ||||
Litigation settlement, Non-environmental legal actions, mile radius of personal injury claims | mi | 10 | 10 | ||||
Number of school districts voluntarily dismissed actions | school_District | 3 | |||||
Number of school districts as plaintiffs | school_District | 6 | |||||
Estimated litigation liability | $ 676 | $ 676 | $ 82 | |||
Loss contingency, number of pending claims | complaint | 3 | 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) location | Dec. 31, 2023 USD ($) location | |
Loss Contingencies [Line Items] | ||
Environmental loss contingency, statement of financial position, extensible enumeration, not disclosed flag | Consolidated Balance Sheets | Consolidated Balance Sheets |
Number of locations with one or more subsidiaries in conjunction with other parties identified as potentially responsible parties | location | 8 | |
Employees covered by collective bargaining agreements, percentage | 80% | |
Other Environmental Claims | ||
Loss Contingencies [Line Items] | ||
Environmental matters liabilities | $ | $ 56 | $ 60 |
Current environmental liability | $ | $ 15 | $ 15 |
Known cleanup and remediation locations and projects | location | 77 | 81 |
Number of sites - representative sample | location | 19 | |
Liability associated with those sites | $ | $ 46 | |
Environmental locations representative sample liability payout period, in years | 5 years |
Commitments and Contingencies_3
Commitments and Contingencies - Insurance (Details) | 3 Months Ended | 14 Months Ended |
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) | |
Loss Contingencies [Line Items] | ||
Percentage of potential losses covered by insurance on legal liabilities for bodily injury and property damage to third parties | 93% | 93% |
Self-insured injury/damage to third parties - and above, per occurrence | $ 75,000,000 | $ 75,000,000 |
Self-insured injury/damage to third party - up to | $ 734,000,000 | $ 734,000,000 |
Percentage of potential losses covered by insurance on damage to property owned or in control | 82% | 82% |
Self-insured coverage for potential losses on damage to property owned (above) | $ 75,000,000 | $ 75,000,000 |
Self-insured coverage for potential losses on damage to property owned (up to) | 275,000,000 | 275,000,000 |
Eastern Ohio Incident | ||
Loss Contingencies [Line Items] | ||
Insurance recoveries received | $ 108,000,000 | $ 209,000,000 |