The merchandise business shipped 2.6 million carloads, a 2% increase compared to the prior year, and generated $8.7 billion in revenue. The company cited increased shipments in automotive, minerals, and metals and equipment as key drivers.

The intermodal business shipped 2.8 million units, a 7% decrease compared to the prior year, and generated $2.1 billion in revenue. The company cited decreased international shipments as a key driver.

The coal business shipped 755 thousand carloads, an 8% increase compared to the prior year, and generated $2.5 billion in revenue. The company cited higher shipments of metallurgical and thermal coal as a key driver.

The operating ratio increased to 62.1% compared to 59.5% in the prior year, indicating a decrease in operational efficiency.

Velocity improved by 12% and dwell improved by 17% compared to the prior year, indicating improved service performance.

Carload trip plan performance improved to 84% compared to 64% in the prior year, while intermodal trip plan performance improved to 95% compared to 90% in the prior year, indicating improved service performance.

The company acknowledges that it, its third-party vendors, and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents.

The company notes that it could experience rail network difficulties related to locomotive or crew shortages, labor shortages, unpredictable increases in demand, extreme weather conditions, regulatory changes, reductions in availability of pooled equipment, and increased passenger activities.

The company acknowledges the potential for operational impacts from changing weather patterns or rising sea levels and that climate change and other emissions-related laws and regulations could adversely affect operations and financial results.

The company acknowledges that it experiences competition in pricing, service, reliability and other factors from various transportation providers including railroads and motor carriers.

The company notes that CSXT's primary rail competitor is Norfolk Southern Railway, which operates throughout much of the Company's territory.

The company acknowledges that depending on the specific market, competing railroads and deregulated motor carriers may exert pressure on price and service levels.

Fuel expense decreased by $249 million primarily due to a 19% decrease in locomotive fuel prices, partially offset by higher fuel consumption.

Equipment and other rents expense decreased by $42 million primarily due to lower car hire costs from improved car cycle times, partially offset by costs related to higher automotive volume.

Labor and fringe expenses increased by $163 million primarily due to inflation and higher headcount and union employee vacation and sick benefits.

The company acknowledges that it relies on information technology in all aspects of its business and that the security, stability and availability of these systems are critical to its ability to operate safely and effectively.

The company has implemented processes designed to assess, identify, and manage material cybersecurity risks and maintains a cybersecurity framework that is integrated across the organization.

The company acknowledges that if it is unable to successfully acquire, develop or implement new technology, including artificial intelligence, it may suffer a competitive disadvantage within the rail industry.

The company repurchased $3.5 billion of shares in 2023 and has $4.8 billion remaining under its current authorization. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances.

The company's Board of Directors authorized a 9% increase in the quarterly cash dividend to $0.12 per common share effective March 2024.

The company plans to invest approximately $2.5 billion in 2024, with a focus on safety and reliability. Management is also committed to investments that promote profitable growth.

The company is committed to developing a culture that promotes workforce diversity and inclusion and encourages ethical behavior. Approximately 23% of CSX's overall workforce and 37% of management was diverse as of December 31, 2023.

The company prioritizes workplace safety for employees and is committed to continued improvement through enhanced processes, training, technology, communication, and continuous collaboration with customers and peers across the railroad industry.

The company is subject to wide-ranging federal, state, provincial and local environmental laws and regulations concerning, among other things, emissions into the air, ground and water; the handling, storage, use, generation, transportation and disposal of waste and other materials.

The company acknowledges that a decline or disruption in general domestic and global economic conditions that affects demand for the commodities and products the Company transports, including import and export volume, could reduce revenues.

The company notes that changing dynamics in the U.S. and global energy markets, including the impacts of regulation and alternative fuel sources, have resulted in lower energy production from coal-fired power plants in CSX's service territory.

The company acknowledges that instability or disruptions of the capital markets, including credit markets, significant increases in interest rates, or the deterioration of the Company's financial condition could restrict or prohibit access and could increase financing costs.