Norfolk Southern (NSC) 8-K Norfolk Southern reports Q4 and full-year 2022 results

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.