The company entered into an asset purchase and sale agreement with the Board of Trustees of the Cincinnati Southern Railway to purchase 337 miles of railway line from Cincinnati, Ohio to Chattanooga, Tennessee, with the transaction expected to close on March 15, 2024.

The company's capital spending and replacement programs are designed to support its ability to provide safe, efficient, and reliable rail transportation services, with property additions for 2023 totaling $2.3 billion.

The company expects that revenue will increase modestly in 2024, driven by higher volumes, particularly in merchandise and intermodal segments.

The company has made investments in operational resiliency and safety, and has a standing Safety Committee that reviews and evaluates compliance with safety programs.

The company is focused on maintaining appropriate headcount levels for its craft-employee workforce, and is managing this metric through forecasting tools, however, significant increases in demand for rail services could result in the unavailability of qualified personnel.

Management is actively addressing multiple governmental actions as a result of the Eastern Ohio Incident, including legal, regulatory, and operational changes.

The company has incurred significant costs, liabilities, fines, and penalties related to the Eastern Ohio incident and related proceedings, which have and can be expected to continue to negatively affect financial results.

New or additional governmental regulation and/or operational changes resulting from or related to the Incident or the Incident Proceedings may negatively impact the company, its customers, the rail industry, or the markets it serves.

A significant cybersecurity incident or other disruption to the company's technology infrastructure could disrupt business operations, and the company is continually targeted by threat actors attempting to access its networks.

The company faces strong competition from rail, water, and highway carriers, with price being only one factor of importance as shippers and receivers choose a transport mode and specific hauling company.

The company's primary rail competitor is CSX Corporation, with both companies operating throughout much of the same territory.

The company is subject to competition from motor carriers, railroads, and, to a lesser extent, ships, barges, and pipelines, on the basis of transit time, pricing, and quality and reliability of service.

Railway operating expenses increased in 2023 due to the Eastern Ohio Incident, inflationary pressures, investments in operational resiliency, and higher service-related costs, partially offset by lower fuel prices.

Fuel expense decreased in 2023 due to lower locomotive fuel prices, which decreased fuel expense by $275 million.

The company has experienced and may again experience capacity constraints on its rail network related to employee or equipment shortages, increased demand for rail services, severe weather, congestion on other railroads, or impacts from changes to the network structure.

The company extensively relies on information and operational technology systems, and improvements in those technologies, in all aspects of its business.

The company is continually targeted by threat actors attempting to access its networks and may be unable to detect or prevent a breach of its systems or disruption to its service in the future.

The company uses a multi-layered defensive cybersecurity strategy based on the cyber security framework drafted by the NIST, and monitors, tests, assesses, and updates these processes.

The company repurchased $622 million of its stock in 2023, resulting in the retirement of 2.8 million shares.

On March 29, 2022, the Board of Directors authorized a new program for the repurchase of up to $10.0 billion of Common Stock, with $6.9 billion remaining authorized as of December 31, 2023.

The company issued $2.5 billion in senior notes in 2023, including $400 million of 5.55% senior notes due 2034, $600 million of 5.95% senior notes due 2064, $600 million of 5.05% senior notes due 2030 and $1.0 billion of 5.35% senior notes due 2054.

The company's commitment to an injury-free workplace is outlined in its Foundation of Safety policy, which focuses on rules compliance, responsibility, relationships, and responsiveness.

The company is dedicated to establishing a workplace that is diverse, equitable, and inclusive, where a broad spectrum of identities, perspectives, and experiences is not only represented but also valued and empowered to thrive.

Compliance with federal, state, and local laws and regulations relating to the protection of the environment is one of the company's principal goals.

The company's railroads are subject to regulation by the U.S. Surface Transportation Board (STB), which has jurisdiction over rates, routes, customer access provisions, fuel surcharges, conditions of service, and the extension or abandonment of rail lines.

The company is also subject to the enactment of laws by Congress and regulation by the DOT (including the FRA) and the DHS (including the TSA), which regulate many aspects of its operations related to safety, security and cybersecurity.

Efforts have been made over the past several years to increase federal economic regulation of the rail industry, and such efforts are expected to continue in 2024.