Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Fourth Quarter | Years Ended December 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Railway operating revenues | ||||||||||||||||
Merchandise | $ | 1,876 | $ | 1,671 | $ | 7,331 | $ | 6,669 | ||||||||
Intermodal | 913 | 831 | 3,681 | 3,163 | ||||||||||||
Coal | 448 | 350 | 1,733 | 1,310 | ||||||||||||
Total railway operating revenues | 3,237 | 2,852 | 12,745 | 11,142 | ||||||||||||
Railway operating expenses | ||||||||||||||||
Compensation and benefits | 653 | 598 | 2,621 | 2,442 | ||||||||||||
Purchased services and rents | 520 | 472 | 1,922 | 1,726 | ||||||||||||
Fuel | 367 | 226 | 1,459 | 799 | ||||||||||||
Depreciation | 309 | 298 | 1,221 | 1,181 | ||||||||||||
Materials and other | 207 | 129 | 713 | 547 | ||||||||||||
Total railway operating expenses | 2,056 | 1,723 | 7,936 | 6,695 | ||||||||||||
Income from railway operations | 1,181 | 1,129 | 4,809 | 4,447 | ||||||||||||
Other income – net | 34 | 21 | 13 | 77 | ||||||||||||
Interest expense on debt | 177 | 165 | 692 | 646 | ||||||||||||
Income before income taxes | 1,038 | 985 | 4,130 | 3,878 | ||||||||||||
Income taxes | ||||||||||||||||
Current | 188 | 199 | 777 | 689 | ||||||||||||
Deferred | 60 | 26 | 83 | 184 | ||||||||||||
Total income taxes | 248 | 225 | 860 | 873 | ||||||||||||
Net income | $ | 790 | $ | 760 | $ | 3,270 | $ | 3,005 | ||||||||
Earnings per share – diluted | $ | 3.42 | $ | 3.12 | $ | 13.88 | $ | 12.11 | ||||||||
Weighted average shares outstanding – diluted | 230.7 | 243.5 | 235.6 | 248.1 |
See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
At December 31, | ||||||||
2022 | 2021 | |||||||
($ in millions) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 456 | $ | 839 | ||||
Accounts receivable – net | 1,148 | 976 | ||||||
Materials and supplies | 253 | 218 | ||||||
Other current assets | 150 | 134 | ||||||
Total current assets | 2,007 | 2,167 | ||||||
Investments | 3,694 | 3,707 | ||||||
Properties less accumulated depreciation of $12,592 and $12,031, respectively | 32,156 | 31,653 | ||||||
Other assets | 1,028 | 966 | ||||||
Total assets | $ | 38,885 | $ | 38,493 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,293 | $ | 1,351 | ||||
Short-term debt | 100 | — | ||||||
Income and other taxes | 312 | 305 | ||||||
Other current liabilities | 341 | 312 | ||||||
Current maturities of long-term debt | 603 | 553 | ||||||
Total current liabilities | 2,649 | 2,521 | ||||||
Long-term debt | 14,479 | 13,287 | ||||||
Other liabilities | 1,759 | 1,879 | ||||||
Deferred income taxes | 7,265 | 7,165 | ||||||
Total liabilities | 26,152 | 24,852 | ||||||
Stockholders’ equity: | ||||||||
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 228,076,415 and 240,162,790 shares, respectively, net of treasury shares | 230 | 242 | ||||||
Additional paid-in capital | 2,157 | 2,215 | ||||||
Accumulated other comprehensive loss | (351 | ) | (402 | ) | ||||
Retained income | 10,697 | 11,586 | ||||||
Total stockholders’ equity | 12,733 | 13,641 | ||||||
Total liabilities and stockholders’ equity | $ | 38,885 | $ | 38,493 |
See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Years Ended December 31, | ||||||||
2022 | 2021 | |||||||
($ in millions) | ||||||||
Cash flows from operating activities | ||||||||
Net income | $ | 3,270 | $ | 3,005 | ||||
Reconciliation of net income to net cash provided by operating activities: | ||||||||
Depreciation | 1,221 | 1,181 | ||||||
Deferred income taxes | 83 | 184 | ||||||
Gains and losses on properties | (82 | ) | (86 | ) | ||||
Changes in assets and liabilities affecting operations: | ||||||||
Accounts receivable | (171 | ) | (133 | ) | ||||
Materials and supplies | (35 | ) | 3 | |||||
Other current assets | (18 | ) | (6 | ) | ||||
Current liabilities other than debt | 23 | 283 | ||||||
Other – net | (69 | ) | (176 | ) | ||||
Net cash provided by operating activities | 4,222 | 4,255 | ||||||
Cash flows from investing activities | ||||||||
Property additions | (1,948 | ) | (1,470 | ) | ||||
Property sales and other transactions | 263 | 159 | ||||||
Investment purchases | (12 | ) | (10 | ) | ||||
Investment sales and other transactions | 94 | 99 | ||||||
Net cash used in investing activities | (1,603 | ) | (1,222 | ) | ||||
Cash flows from financing activities | ||||||||
Dividends | (1,167 | ) | (1,028 | ) | ||||
Common stock transactions | (4 | ) | 17 | |||||
Purchase and retirement of common stock | (3,110 | ) | (3,390 | ) | ||||
Proceeds from borrowings | 1,832 | 1,676 | ||||||
Debt repayments | (553 | ) | (584 | ) | ||||
Net cash used in financing activities | (3,002 | ) | (3,309 | ) | ||||
Net decrease in cash and cash equivalents | (383 | ) | (276 | ) | ||||
Cash and cash equivalents | ||||||||
At beginning of year | 839 | 1,115 | ||||||
At end of year | $ | 456 | $ | 839 | ||||
Supplemental disclosures of cash flow information | ||||||||
Cash paid during the year for: | ||||||||
Interest (net of amounts capitalized) | $ | 619 | $ | 579 | ||||
Income taxes (net of refunds) | 750 | 654 |
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:
1. Stock Repurchase Program
We repurchased and retired 12.6 million and 12.7 million shares of common stock under our stock repurchase programs in 2022 and 2021, respectively, at a cost of $3.1 billion and $3.4 billion, respectively.