The company is focusing on safety, service, and operational excellence as a long-term strategy to grow freight volumes. This includes improving safety culture, delivering superior service, and operating efficiently.

The company invested $3.7 billion back into the network to support its service product and growth. This includes investments in infrastructure, equipment, and technology.

The company expects to reduce its capital spending in 2024, but will continue to invest in safety, infrastructure, and growth-related projects.

The company initiated changes to its safety program focusing on training, culture, and communication. This was in response to historical injury data indicating failures to comply with critical operating rules.

The company improved network fluidity, freight car velocity, and terminal dwell times throughout the year. This was achieved through increased hiring and deployment of locomotives.

The company increased employee levels by 3%, including a 4% increase in train, engine, and yard employees. This was done to backfill attrition and address operational challenges.

Reductions in demand for rail services or changes in consumer preferences can lead to increased costs and operational difficulties. Significant demand exceeding network capacity can also compromise service levels.

The company is subject to cybersecurity threats that could have a material adverse impact on operations, financial condition, and liquidity. The company has experienced and will likely continue to experience cyber incidents.

The company is exposed to severe weather conditions and other natural phenomena, which can cause line outages and other interruptions that negatively affect revenues, costs, and liabilities.

The company faces competition from other railroads, motor carriers, ships, barges, and pipelines. This includes price competition, transit times, and service quality.

Customers can use different products or commodities from different locations, which can reduce the company's volume or constrain prices.

The company is making efforts to convert truck traffic to rail, which is more fuel-efficient and environmentally responsible.

The company is focused on operating efficiently and productively while maintaining a buffer to handle fluctuations. This includes improving network fluidity and resource utilization.

The company reduced its active locomotive fleet size by 11% in the second half of 2023, as a result of improved network fluidity.

The operating ratio deteriorated due to inflation, excess network costs, and the ratification charge for a crew staffing agreement.

The company continued to refine its proprietary software, Precision Train Builder, to evaluate train and route characteristics and enable proactive intervention to prevent derailments.

The company is investing in technology to improve operational efficiency. This includes deploying technology to provide real-time railcar condition monitoring.

The company relies on information technology in all aspects of its business. Failure to implement new technology or maintain current systems could lead to competitive disadvantage.

The company repurchased 3.7 million shares of its common stock at an average price of $202.61. This reflects management's view that shares are undervalued.

The company paid $3.2 billion in dividends to shareholders, reflecting a commitment to returning value to shareholders.

The company plans to invest $3.4 billion in its network in 2024, down from $3.7 billion in 2023. The plan includes investments in safety, infrastructure, and growth-related projects.

The company believes it is important to act as environmental stewards, reducing greenhouse gas emissions, and supporting the transition to a more sustainable future. They are working to further reduce their environmental footprint.

The company notes that freight rail is one of the most fuel-efficient means of transportation, leading to lower GHG emissions compared to other forms of surface transportation.

The company is committed to creating an environment where people can be their best, personally and professionally. They are striving to reach 40% people of color and double female representation to 11% in their workforce by 2030.

Macroeconomic uncertainties remain in 2024 that could have a material impact on the company's financial and operating results. This includes factors such as changes in monetary policy, natural gas prices, and international trade agreements.

Climate change, including the impact of global warming, could have a material adverse effect on the company's results of operations, financial condition, and liquidity. Restrictions on emissions could also affect customers.

Significant and sustained interruptions of trade with Mexico, Canada, or countries in Southeast Asia could adversely affect customers and other entities that rely on rail transportation services.