“For the fourth quarter, we expect other expense to be flat versus 2021 as we are anticipating the receipt of an insurance settlement for last year's bridge fire.”

In context

“wage inflation. We also experienced continued cost pressures related to network inefficiencies with higher overtime and borrow-out costs. For the fourth quarter, we expect the year-over-year increase to be around 7%, in line with tentative and ratified wage increases. Purchased services and materials expense remained elevated, up 23% driven by higher cost to maintain a larger active locomotive fleet, volume-related purchase transportation expense associated with our Loup subsidiary and inflation. Equipment and other rents decreased 1% driven by higher equity income that more than offset increased car hire expenses. Other expense grew 18% in the quarter, a bit higher than we anticipated as a result of increased casualty expenses associated with freight loss and damage and personal injury. For the fourth quarter, we expect other expense to be flat versus 2021 as we are anticipating the receipt of an insurance settlement for last year's bridge fire. Overall, inflation and cost inefficiencies offset the benefits of volume leverage and resulted in fuel-adjusted incremental margins of just 2%. Although not the results we know we can achieve, it still reflects positive progress from the second quarter and provides us with momentum as we wrap up 2022. Turning to Slide 19 and our cash flows. Cash from operations through the third quarter increased 9% to $7.1 billion. Our comparable cash flow conversion rate was 80%, and free cash flow totaled $2.1 billion. Although this is a decrease of $517 million versus 2021, it includes $745 million of increased cash capital spending and $317 million in higher dividends. With the increased capital spending to date, we now expect full year 2022 capital to be around $3.4 billion, up slightly from our pri”