United States (U.S.). We also transport overseas freight through several Atlantic and Gulf Coast ports. We offer the most extensive intermodal network in the eastern half of the U.S. We make available free of charge through our website, www.norfolksouthern.com, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the U.S. Securities and Exchange Commission (SEC). In addition, the following documents are available on our website and in print to any shareholder who requests them: • Norfolk Southern Corporation Bylaws • Charters of the Committees of the Board of Directors • Corporate Governance Guidelines • Categorical Independence Standards • The Thoroughbred Code of Ethics • Code of Ethical Conduct for Senior Financial Officers K3 RAILROAD OPERATIONS – At December 31, 2023, we operated approximately 19,100 route miles in 22 states and the District of Columbia. Our system reaches many manufacturing plants, electric generating facilities, mines, distribution centers, transload facilities, and other businesses located in our service area. Corridors with heaviest freight volume: • New York City area to Chicago (via Allentown and Pittsburgh) • Chicago to Macon (via Cincinnati, Chattanooga, and Atlanta) • Central Ohio to Norfolk (via Columbus and Roanoke) • Cleveland to Kansas City • Birmingham to Meridian • Memphis to Chattanooga K4 The miles operated, which include major leased lines between Cincinnati and Chattanooga, and an exclusive operating agreement for trackage rights over property owned by North Carolina Railroad Company, were as follows: Mileage Operated at December 31, 2023 Second Passing and Track, Other Crossovers Way and Route Main and Yard Miles Track Turnouts Switching Total Owned 14,312 2,676 1,953 8,142 27,083 Operated under lease, contract or trackage rights 4,825 1,889 406 841 7,961 Total 19,137 4,565 2,359 8,983 35,044 In 2022, we entered into an asset purchase and sale agreement with the Board of Trustees of the Cincinnati Southern Railway (CSR) to purchase 337 miles of railway line that extends from Cincinnati, Ohio to Chattanooga, Tennessee that we currently operate under a lease. The transaction is scheduled to close on March 15, 2024. See further discussion in Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations” and Item 8 “Notes to Consolidated Financial Statements.” We operate freight service over lines with significant ongoing Amtrak and commuter passenger operations and conduct freight operations over trackage owned or leased by Amtrak, New Jersey Transit, Southeastern Pennsylvania Transportation Authority, Metro-North Commuter Railroad Company, and Michigan Department of Transportation. The following table sets forth certain statistics relating to our operations for the past five years: Years ended December 31, 2023 2022 2021 2020 2019 Revenue ton miles (billions) 176 179 178 164 194 Revenue per thousand revenue ton miles $ 69.05 $ 71.35 $ 62.56 $ 59.67 $ 58.21 Revenue ton miles (thousands) per railroad employee 8,719 9,513 9,694 8,191 7,939 Ratio of railway operating expenses to railway operating revenues (railway operating ratio) 76.5% 62.3% 60.1% 69.3% 64.7% RAILWAY OPERATING REVENUES – Total railway operating revenues were $12.2 billion in 2023. Following is an overview of our three commodity groups. See the discussion of merchandise revenues by major commodity group, intermodal revenues, and coal revenues and tonnage in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” MERCHANDISE – Our merchandise commodity group is composed of four groupings: • Agriculture, forest and consumer products includes soybeans, wheat, corn, fertilizer, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods. • Chemicals includes sulfur and related chemicals, petroleum products (including crude oil), chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids. K5 • Metals and construction includes steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and items for the U.S. military. • Automotive includes finished motor vehicles and automotive parts. In 2023, we handled 2.2 million merchandise carloads, which accounted for 61% of our total railway operating revenues. INTERMODAL – Our intermodal commodity group consists of shipments moving in domestic and international containers and trailers. These shipments are handled on behalf of intermodal marketing companies, international steamship lines, premium customers and asset-owning companies. In 2023, we handled 3.8 million intermodal units, which accounted for 25% of our total railway operating revenues. COAL – Coal revenues accounted for 14% of our total railway operating revenues in 2023. We handled 76 million tons, or 0.7 million carloads, most of which originated on our lines from major eastern coal basins, with the balance from major western coal basins received via the Memphis and Chicago gateways. Our coal franchise supports the electric generation market, directly serving approximately 30 coal-fired power plants, as well as the export, domestic metallurgical and industrial markets, primarily through direct rail and river, lake, and coastal facilities, including various terminals on the Ohio River, at Lamberts Point in Norfolk, Virginia, at the Port of Baltimore, and on Lake Erie. FREIGHT RATES – Our predominant pricing mechanisms, private contracts and exempt price quotes, are not subject to regulation. In general, market forces are the primary determinant of rail service prices. RAILWAY PROPERTY Our railroad infrastructure makes us capital intensive with net properties of approximately $33 billion on a historical cost basis. Property Additions – Property additions for the past five years were as follows: 2023 2022 2021 2020 2019 ($ in millions) Road and other property $ 1,547 $ 1,345 $ 1,041 $ 1,046 $ 1,371 Equipment 802 603 429 448 648 Total $ 2,349 $ 1,948 $ 1,470 $ 1,494 $ 2,019 Our capital spending and replacement programs are and have been designed to support our ability to provide safe, efficient, and reliable rail transportation services. K6 Equipment – Our equipment includes owned and leased locomotives and railcars; maintenance of way equipment and machinery; other equipment and tools used in our shops, offices and facilities; and vehicles and other equipment used for maintenance, transportation, and other activities. Our equipment includes both owned equipment acquired by us, and equipment held under lease arrangements. At December 31, 2023, we owned or leased the following revenue generating equipment: Capacity of Owned Leased Total Equipment Locomotives: (Horsepower) Multiple purpose 3,162 30 3,192 12,471,795 Auxiliary units 140 — 140 — Switching 4 — 4 4,400 Total locomotives 3,306 30 3,336 12,476,195 Freight cars: (Tons) Gondola 18,011 3,741 21,752 2,443,624 Hopper 7,672 — 7,672 876,433 Covered hopper 5,384 — 5,384 598,451 Box 2,189 610 2,799 257,694 Flat 1,213 676 1,889 135,106 Other 1,086 — 1,086 46,815 Total freight cars 35,555 5,027 40,582 4,358,123 Intermodal equipment: Chassis 38,397 1,063 39,460 Containers 17,662 — 17,662 Roadrailers 1,110 — 1,110 Total intermodal equipment 57,169 1,063 58,232 The following table indicates the number and year built for locomotives and freight cars owned at December 31, 2023: 2014- 2009- 2008 & 2023 2022 2021 2020 2019 2018 2013 Before Total Locomotives: No. of units — — 1 10 36 225 242 2,792 3,306 % of fleet —% —% —% —% 1% 7% 7% 85% 100% Freight cars: No. of units 1,043 236 — — 198 4,195 6,401 23,482 35,555 % of fleet 3% 1% —% —% —% 12% 18% 66% 100% K7 The following table shows the average age of our owned locomotive and freight car fleets at December 31, 2023 and information regarding 2023 retirements: Locomotives Freight Cars Average age – in service 28.5 years 25.4 years Retirements 2 units 1,744 units Average age – retired 23.0 years 40.8 years Track Maintenance – Of the 35,000 total miles of track on which we operate, we are responsible for maintaining 28,400 miles, with the remainder being operated under trackage rights from other parties responsible for maintenance. Over 85% of the main line trackage (including first, second, third, and branch main tracks, all excluding rail operated pursuant to trackage rights) has rail ranging from 131 to 155 pounds per yard with the standard installation currently at 136 pounds per yard. Approximately 39% of our lines, excluding rail operated pursuant to trackage rights, carried 20 million or more gross tons per track mile during 2023.