Name: Norfolk Southern Corp. (NYSE:NSC) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

Norfolk Southern Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Railway operating revenues	11,142)	9,789)	11,296)	11,458)	10,551)
Purchased services and rents	(1,726)	(1,687)	(1,725)	(1,730)	(1,414)
Fuel	(799)	(535)	(953)	(1,087)	(840)
Cost of railway operating revenues	(2,525)	(2,222)	(2,678)	(2,817)	(2,254)
Gross profit	8,617)	7,567)	8,618)	8,641)	8,297)
Compensation and benefits	(2,442)	(2,373)	(2,751)	(2,925)	(2,915)
Depreciation	(1,181)	(1,154)	(1,138)	(1,102)	(1,055)
Materials and other	(547)	(653)	(740)	(655)	(741)
Loss on asset disposal	—)	(385)	—)	—)	—)
Income from railway operations	4,447)	3,002)	3,989)	3,959)	3,586)
Pension and other postretirement benefits	102)	91)	63)	61)	—)
COLI, net	17)	85)	69)	(10)	33)
Other	(42)	(23)	(26)	16)	59)
Other income, net	77)	153)	106)	67)	92)
Interest expense on debt	(646)	(625)	(604)	(557)	(550)
Income before income taxes	3,878)	2,530)	3,491)	3,469)	3,128)
Income taxes	(873)	(517)	(769)	(803)	2,276)
Net income	3,005)	2,013)	2,722)	2,666)	5,404)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial performance between 2017 and 2021 is characterized by a period of relative stability interrupted by a significant contraction in 2020, followed by a recovery in 2021. Railway operating revenues peaked in 2018 at 11,458 million USD before declining to a five-year low of 9,789 million USD in 2020. By 2021, revenues rebounded to 11,142 million USD, nearly returning to pre-pandemic levels.

Operating Expense Trends: Variable costs exhibited notable volatility, particularly fuel expenses, which fluctuated from a high of 1,087 million USD in 2018 to a low of 535 million USD in 2020. Compensation and benefits showed a gradual downward trend, decreasing from 2,915 million USD in 2017 to 2,442 million USD in 2021. Conversely, depreciation expenses rose steadily each year, moving from 1,055 million USD in 2017 to 1,181 million USD in 2021, indicating consistent capital investment in infrastructure or rolling stock.
Operating Profitability: Income from railway operations followed a trajectory similar to revenue, with a peak in 2019 at 3,989 million USD, a sharp decline to 3,002 million USD in 2020, and a strong recovery to 4,447 million USD in 2021. The 2020 decline was exacerbated by a one-time loss on asset disposal amounting to 385 million USD, which compressed operating margins during that fiscal year.
Non-Operating Costs and Interest: Interest expense on debt increased monotonically over the period, rising from 550 million USD in 2017 to 646 million USD in 2021. Other income remained relatively marginal, though it peaked in 2020 at 153 million USD, providing a minor offset to operating losses during the downturn.
Net Income and Tax Impact: Net income figures were heavily influenced by tax anomalies. In 2017, net income reached an outlier peak of 5,404 million USD, driven by a positive income tax adjustment of 2,276 million USD. Excluding this event, net income fluctuated between 2,013 million USD in 2020 and 3,005 million USD in 2021. The general trend demonstrates a recovery in the bottom line from the 2020 trough, supported by the rebound in operating income and stabilized operating costs.

AI Ask an analyst for more

My previous chats

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?