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Published: 2022-07-27 08:02:35 ET
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EX-99.2 3 e22381_ex99-2.htm

Exhibit 99.2

Norfolk Southern Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

   Second Quarter   First Six Months 
   2022   2021   2022   2021 
   (in millions, except per share amounts) 
                 
Railway operating revenues                    
Merchandise  $1,853   $1,680   $3,525   $3,288 
Intermodal   972    801    1,826    1,520 
Coal   425    318    814    630 
Total railway operating revenues   3,250    2,799    6,165    5,438 
                     
Railway operating expenses                    
Compensation and benefits   614    624    1,233    1,235 
Purchased services and rents   481    429    918    822 
Fuel   408    188    709    365 
Depreciation   304    294    606    586 
Materials and other   172    97    343    248 
Total railway operating expenses   1,979    1,632    3,809    3,256 
                     
Income from railway operations   1,271    1,167    2,356    2,182 
                     
Other income (expense) – net   (14)   35    (19)   42 
Interest expense on debt   170    161    338    317 
                     
Income before income taxes   1,087    1,041    1,999    1,907 
                     
Income taxes                    
Current   205    167    366    308 
Deferred   63    55    111    107 
Total income taxes   268    222    477    415 
                     
Net income  $819   $819   $1,522   $1,492 
                     
Earnings per share – diluted  $3.45   $3.28   $6.37   $5.94 
                     
Weighted average shares outstanding – diluted   237.5    250.0    238.9    251.3 

See accompanying notes to consolidated financial statements.

 
 

Norfolk Southern Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

   June 30,   December 31, 
   2022   2021 
   ($ in millions) 
Assets          
Current assets:          
Cash and cash equivalents  $1,259   $839 
Accounts receivable – net   1,208    976 
Materials and supplies   289    218 
Other current assets   101    134 
Total current assets   2,857    2,167 
           
Investments   3,671    3,707 
Properties less accumulated depreciation of $12,267 and $12,031, respectively   31,787    31,653 
Other assets   1,021    966 
           
Total assets  $39,336   $38,493 
           
Liabilities and stockholders’ equity          
Current liabilities:          
Accounts payable  $1,308   $1,351 
Income and other taxes   333    305 
Other current liabilities   363    312 
Current maturities of long-term debt   605    553 
Total current liabilities   2,609    2,521 
           
Long-term debt   14,449    13,287 
Other liabilities   1,843    1,879 
Deferred income taxes   7,281    7,165 
           
Total liabilities   26,182    24,852 
           
Stockholders’ equity:          
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 234,873,651 and 240,162,790 shares, respectively, net of treasury shares   236    242 
Additional paid-in capital   2,190    2,215 
Accumulated other comprehensive loss   (388)   (402)
Retained income   11,116    11,586 
           
Total stockholders’ equity   13,154    13,641 
           
Total liabilities and stockholders’ equity  $39,336   $38,493 

See accompanying notes to consolidated financial statements.

 
 

Norfolk Southern Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

   First Six Months 
   2022   2021 
   ($ in millions) 
Cash flows from operating activities          
Net income  $1,522   $1,492 
Reconciliation of net income to net cash provided by operating activities:          
Depreciation   606    586 
Deferred income taxes   111    107 
Gains and losses on properties   (37)   (75)
Changes in assets and liabilities affecting operations:          
Accounts receivable   (230)   (96)
Materials and supplies   (71)   (25)
Other current assets   30    30 
Current liabilities other than debt   75    170 
Other – net   5    (92)
           
Net cash provided by operating activities   2,011    2,097 
           
Cash flows from investing activities          
Property additions   (837)   (627)
Property sales and other transactions   100    66 
Investment purchases   (7)   (5)
Investment sales and other transactions   30    37 
           
Net cash used in investing activities   (714)   (529)
           
Cash flows from financing activities          
Dividends   (591)   (496)
Common stock transactions   (14)   6 
Purchase and retirement of common stock   (1,454)   (1,525)
Proceeds from borrowings   1,732    1,087 
Debt repayments   (550)   (85)
           
Net cash used in financing activities   (877)   (1,013)
           
Net increase in cash and cash equivalents   420    555 
           
Cash and cash equivalents          
At beginning of year   839    1,115 
           
At end of period  $1,259   $1,670 
           
Supplemental disclosures of cash flow information          
Cash paid during the period for:          
Interest (net of amounts capitalized)  $294   $281 
Income taxes (net of refunds)   321    249 

See accompanying notes to consolidated financial statements.

 
 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Stock Repurchase Program

We repurchased and retired 5.7 million shares of common stock under our stock repurchase program at a cost of $1.5 billion during the first six months of both 2022 and 2021.