Norfolk Southern (NSC) 8-K Norfolk Southern reports third quarter 2022 financial results Posts quarterly financial records, improved service for customers

Exhibit 99.2

Norfolk Southern Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Third Quarter					First Nine Months
	2022			2021		2022			2021
	(in millions, except per share amounts)
Railway operating revenues
Merchandise	$	1,930		$	1,710	$	5,455		$	4,998
Intermodal		942			812		2,768			2,332
Coal		471			330		1,285			960
Total railway operating revenues		3,343			2,852		9,508			8,290
Railway operating expenses
Compensation and benefits		735			609		1,968			1,844
Purchased services and rents		484			432		1,402			1,254
Fuel		383			208		1,092			573
Depreciation		306			297		912			883
Materials and other		163			170		506			418
Total railway operating expenses		2,071			1,716		5,880			4,972
Income from railway operations		1,272			1,136		3,628			3,318
Other income (expense) – net		(2	)		14		(21	)		56
Interest expense on debt		177			164		515			481
Income before income taxes		1,093			986		3,092			2,893
Income tax expense (benefit)
Current		223			182		589			490
Deferred		(88	)		51		23			158
Total income tax expense (benefit)		135			233		612			648
Net income	$	958		$	753	$	2,480		$	2,245
Earnings per share – diluted	$	4.10		$	3.06	$	10.45		$	8.99
Weighted average shares outstanding – diluted		234.0			246.4		237.2			249.7

See accompanying notes to consolidated financial statements.

Norfolk Southern Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

	September 30,			December 31,
	2022			2021
	($ in millions)
Assets
Current assets:
Cash and cash equivalents	$	1,214		$	839
Accounts receivable – net		1,151			976
Materials and supplies		276			218
Other current assets		74			134
Total current assets		2,715			2,167
Investments		3,686			3,707
Properties less accumulated depreciation of $12,445  and $12,031, respectively		31,838			31,653
Other assets		1,067			966
Total assets	$	39,306		$	38,493
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	1,486		$	1,351
Income and other taxes		299			305
Other current liabilities		408			312
Current maturities of long-term debt		605			553
Total current liabilities		2,798			2,521
Long-term debt		14,463			13,287
Other liabilities		1,828			1,879
Deferred income taxes		7,193			7,165
Total liabilities		26,282			24,852
Stockholders’ equity:
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 231,514,213 and 240,162,790 shares, respectively, net of treasury shares		233			242
Additional paid-in capital		2,181			2,215
Accumulated other comprehensive loss		(377	)		(402	)
Retained income		10,987			11,586
Total stockholders’ equity		13,024			13,641
Total liabilities and stockholders’ equity	$	39,306		$	38,493

See accompanying notes to consolidated financial statements.

Norfolk Southern Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	First Nine Months
	2022			2021
	($ in millions)
Cash flows from operating activities
Net income	$	2,480		$	2,245
Reconciliation of net income to net cash provided by operating activities:
Depreciation		912			883
Deferred income taxes		23			158
Gains and losses on properties		(54	)		(80	)
Changes in assets and liabilities affecting operations:
Accounts receivable		(174	)		(102	)
Materials and supplies		(58	)		(14	)
Other current assets		57			57
Current liabilities other than debt		273			294
Other – net		(35	)		(128	)
Net cash provided by operating activities		3,424			3,313
Cash flows from investing activities
Property additions		(1,282	)		(1,025	)
Property sales and other transactions		193			135
Investment purchases		(8	)		(5	)
Investment sales and other transactions		37			48
Net cash used in investing activities		(1,060	)		(847	)
Cash flows from financing activities
Dividends		(881	)		(764	)
Common stock transactions		(5	)		8
Purchase and retirement of common stock		(2,284	)		(2,460	)
Proceeds from borrowings		1,732			1,676
Debt repayments		(551	)		(576	)
Net cash used in financing activities		(1,989	)		(2,116	)
Net increase in cash and cash equivalents		375			350
Cash and cash equivalents
At beginning of year		839			1,115
At end of period	$	1,214		$	1,465
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest (net of amounts capitalized)	$	425		$	391
Income taxes (net of refunds)		578			468

See accompanying notes to consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Stock Repurchase Program

We repurchased and retired 9.2 million and 9.4 million shares of common stock under our stock repurchase program at a cost of $2.3 billion and $2.5 billion during the first nine months of 2022 and 2021, respectively.