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Published: 2022-04-27 08:05:16 ET
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EX-99.2 3 e22280_ex99-2.htm

Exhibit 99.2

 

Norfolk Southern Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

 

   First Quarter
   2022  2021
   (in millions, except per share amounts)
Railway operating revenues          
Merchandise  $1,672   $1,608 
Intermodal   854    719 
Coal   389    312 
Total railway operating revenues   2,915    2,639 
           
Railway operating expenses          
Compensation and benefits   619    611 
Purchased services and rents   437    393 
Fuel   301    177 
Depreciation   302    292 
Materials and other   171    151 
Total railway operating expenses   1,830    1,624 
           
Income from railway operations   1,085    1,015 
           
Other income (expense) – net   (5)   7 
Interest expense on debt   168    156 
           
Income before income taxes   912    866 
           
Income taxes          
Current   161    141 
Deferred   48    52 
Total income taxes   209    193 
           
Net income  $703   $673 
           
Earnings per share – diluted  $2.93   $2.66 
           
Weighted average shares outstanding – diluted   240.2    252.6 

 

See accompanying notes to consolidated financial statements. 

 

   

 

Norfolk Southern Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

 

   March 31,  December 31,
   2022  2021
   ($ in millions)
Assets          
Current assets:          
Cash and cash equivalents  $1,571   $839 
Accounts receivable – net   1,070    976 
Materials and supplies   264    218 
Other current assets   110    134 
Total current assets   3,015    2,167 
           
Investments   3,697    3,707 
Properties less accumulated depreciation of $12,123          
and $12,031, respectively   31,657    31,653 
Other assets   992    966 
           
Total assets  $39,361   $38,493 
           
Liabilities and stockholders’ equity          
Current liabilities:          
Accounts payable  $1,181   $1,351 
Income and other taxes   443    305 
Other current liabilities   370    312 
Current maturities of long-term debt   1,153    553 
Total current liabilities   3,147    2,521 
           
Long-term debt   13,691    13,287 
Other liabilities   1,845    1,879 
Deferred income taxes   7,217    7,165 
           
Total liabilities   25,900    24,852 
           
Stockholders’ equity:          
Common stock $1.00 per share par value, 1,350,000,000 shares          
  authorized; outstanding 238,332,514 and 240,162,790 shares,          
  respectively, net of treasury shares   240    242 
Additional paid-in capital   2,203    2,215 
Accumulated other comprehensive loss   (394)   (402)
Retained income   11,412    11,586 
           
Total stockholders’ equity   13,461    13,641 
           
Total liabilities and stockholders’ equity  $39,361   $38,493 

 

See accompanying notes to consolidated financial statements. 

 

   

 

Norfolk Southern Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 

   First Three Months
   2022  2021
   ($ in millions)
Cash flows from operating activities          
Net income  $703   $673 
Reconciliation of net income to net cash provided by operating activities:          
Depreciation   302    292 
Deferred income taxes   48    52 
Gains and losses on properties   (6)   (8)
Changes in assets and liabilities affecting operations:          
Accounts receivable   (94)   (95)
Materials and supplies   (46)   (20)
Other current assets   21    9 
Current liabilities other than debt   83    158 
Other – net   (17)   (46)
           
Net cash provided by operating activities   994    1,015 
           
Cash flows from investing activities          
Property additions   (389)   (265)
Property sales and other transactions   36    37 
Investment purchases   (1)   —   
Investment sales and other transactions   19    26 
           
Net cash used in investing activities   (335)   (202)
           
Cash flows from financing activities          
Dividends   (297)   (249)
Common stock transactions   (18)   (6)
Purchase and retirement of common stock   (600)   (591)
Proceeds from borrowings   989    —   
Debt repayments   (1)   (84)
           
Net cash provided by (used in) financing activities   73    (930)
           
Net increase (decrease) in cash and cash equivalents   732    (117)
           
Cash and cash equivalents          
At beginning of year   839    1,115 
           
At end of period  $1,571   $998 
           
Supplemental disclosures of cash flow information          
Cash paid during the period for:          
Interest (net of amounts capitalized)  $114   $110 
Income taxes (net of refunds)   9    27 

 

See accompanying notes to consolidated financial statements. 

 

   

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

1. Stock Repurchase Program

We repurchased and retired 2.2 million and 2.3 million shares of common stock under our stock repurchase program during the first three months of 2022 and 2021, respectively, at a cost of $600 million and $591 million, respectively.