Segment Reporting and Significant Expenses

The Company has two operating segments: rail and trucking. Although the Company provides a breakdown of revenue by line of business, the overall financial and operational performance of the railroad is analyzed as one operating segment due to the integrated nature of the rail network. The "Rail" column in the table below includes the activities of all CSX entities other than the trucking company, Quality Carriers, and also includes the Company's equity in the net income of equity method investments. As the trucking segment is not material for separate disclosure as a reportable segment, the results of these operations are included as a reconciliation to the Company's consolidated results in the tables below. See additional information in Note 1, Nature of Operations and Significant Accounting Policies.

The Company's chief operating decision maker ("CODM") is its Chief Executive Officer. The CODM reviews information presented on a consolidated basis, accompanied by supplemental information about the trucking segment separately, for purposes of allocating resources and evaluating financial performance. The Company has determined that operating income is the key measure of segment profit or loss as this measure is the focus of the CODM in developing financial plans, including resource allocation, and evaluating actual financial performance against plan. The CODM regularly reviews operating results broken out by significant expense.

NOTE 17. Segment Reporting and Significant Expenses, continued

The table below presents information about the Company's significant expenses and the required reportable segment reconciliations for the years ended 2025, 2024 and 2023.


	Years Ended
	December 31, 2025				December 31, 2024					December 31, 2023
(Dollars in Millions)	Rail		Reconciliation to Consolidated			Rail		Reconciliation to Consolidated			Rail		Reconciliation to Consolidated
Revenue	$	13,276				$	13,696				$	13,775

Reconciliation of Revenue
Trucking Revenue (a)			839					851					887
Elimination of intersegment revenues			(23)					(7)					(5)
Total Consolidated Revenue			$	14,092				$	14,540				$	14,657

Expense
Labor and Fringe	$	3,049				$	2,971				$	2,875
Purchased Services and Other	2,586					2,380					2,311
Depreciation and Amortization	1,616					1,598					1,550
Fuel
Locomotive	914					978					1,169
Non-Locomotive	99					102					103
Equipment and Other Rents	336					335					334
Gain on Property Disposition	(13)					(14)					(34)
Segment Operating Income	$	4,689				$	5,346				$	5,467

Reconciliation of Operating Income
Trucking Expenses (b)			1,007					952					855
Elimination of intersegment expenses			(23)					(7)					(5)
Total Consolidated Operating Income			$	4,521				$	5,245				$	5,499

Interest Expense			(844)					(832)					(809)
Other Income-Net			92					142					139
Earnings Before Income Taxes			$	3,769				$	4,555				$	4,829

(a) Trucking revenue is comprised of revenue from Quality Carriers. Rail revenue represents revenue attributed to all CSX entities other than the trucking company, Quality Carriers.

(b) Trucking expenses include labor and fringe, purchased services and other, depreciation and amortization, fuel, equipment and other rents, and gains/losses on property dispositions from the operations of Quality Carriers. Rail expenses represent expenses attributable to all CSX entities other than the trucking company, Quality Carriers. Trucking expenses include $164 million and $108 million impairment charges related to Quality Carriers' goodwill in 2025 and 2024, respectively. See additional information in Note 18, Goodwill and Other Intangible Assets.

NOTE 17. Segment Reporting and Significant Expenses, continued

Capital expenditures made by the rail segment were $2.9 billion, $2.5 billion, and $2.2 billion for 2025, 2024 and 2023, respectively. Capital expenditures include $470 million in 2025 and $50 million in 2024 related to rebuilding the Blue Ridge subdivision as a result of impacts from Hurricane Helene. The total of the rail segment's reportable assets were $43.5 billion, $42.6 billion, and $42.0 billion as of December 31, 2025, 2024 and 2023, respectively, out of total consolidated assets of $43.7 billion, $42.8 billion, and $42.2 billion for the respective years. The remaining non-rail assets are comprised of assets held by the trucking operating segment.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

CSX CORP Segments Disclosure

About Segments Disclosures

Other Available Disclosures