1. See the chart of operating results for CSX presented on the next page.[i]
   1. What is the Operating Ratio for the 2^nd Quarter of 2020?
   2. What is the Operating Ratio for the 2^nd Quarter of 2021?
   3. Did the Operating Ratio improve or get worse between 2020 and 2021?
   4. What was the biggest reason for the change.
   5. Do you think the change will be sustained? (Explain)
2. Based on the results in the chart:
   1. Compute the OR for the 1^st Quarter of 2020. (Hint: Subtract Q2 results from the six month results to get Q1 results.)
   2. Compute the OR for the 1^st Quarter of 2021.
   3. Does CSX do better in Q1 or Q2? Explain.

CSX Corporation CONSOLIDATED INCOME STATEMENTS (Unaudited) (Dollars in millions, except per share amounts) Quarters Ended Jun. 30, Jun. 30 $ % 2021 2020 Change Change Six Months Ended Jun. 30, Jun. 30, $ % 2021 2020 Change Change $ 2,990 $ 2,255 $ 735 33% $ 5,803 $ 5,110 $ 693 14 % (9) Revenue Expense Labor and Fringe Materials, Supplies and Other Depreciation Fuel Equipment and Other Rents Gains on Property Dispositions) Total Expense (3) 1,113 890 688 596 441 348 194 87 (367) 1,299 507 418 344 91 78 (11) 1,427 (89) (23) (4) (103) (9) 356 (18) (6) (1) (113) (12) NM 1,216 913 693 384 283 (103) (23) (5) (101) (16) 341 93 (1) (36) (10) NM 175 159 (370) 3,011 (29) 3,104 128 9 3 Operating Income 1,691 828 863 104 2,792 2,006 786 39 (191) 10 3 (181) 20 1,530 15 5 33 135 5 878 Interest Expense Other Income - Net Earnings Before Income Taxes Income Tax Expense (6) Net Earnings (365) 40 2,467 (378) 37 1,665 8 13 3 802 652 48 (357) (153) (204) $ 1,173 $ 499 $ 674 (133) (588) (396) (192) 135 % $ 1,879 $ 1,269 $ 610 (48) 48 %