“Depreciation expense should be up around 3% versus 2022 and below the line, similar to last year, we expect other income to remain elevated versus historic levels driven by higher real estate and interest income.”

In context

“ation. Equipment and other rents increased 3%, driven by the impact of slower cycle times on car hire expenses. Other expense was flat in the quarter, as higher travel and casualty expenses were offset by a partial insurance recovery related to 2021 bridge fire, as well as lower state and local taxes. Looking to 2023, we have opportunities across the Board to improve efficiency and that’s job one as we recover our service product. Although we still expect to be more than volume variable with our workforce, we will continue to aggressively hire crews in critical locations and to backfill attrition. For 2023, we expect our all-in inflation to be around 4%, while cost per employee is expected to increase in the mid single digits as elevated wage inflation is partially offset by productivity. Depreciation expense should be up around 3% versus 2022 and below the line, similar to last year, we expect other income to remain elevated versus historic levels driven by higher real estate and interest income. Finally, we expect our 2023 annual effective tax rate to be around 24%. Moving to Slide 20 with a quick recap of full year 2022 results, which are shown on the slide as reported and include the impact of the third quarter PEB adjustment. Revenue was up 14%, an annual record, driven by increased fuel surcharges, strong pricing gains and 2% volume growth. Record operating income increased 6% to $9.9 billion, which includes a net increase of just under $700 million from fuel surcharges. Our full year reported operating ratio of 60.1% deteriorated 290 basis points versus 2021. Network inefficiencies and inflation were the primary components of the degradation with the PEB adjustment and higher fuel prices impacting the full year operating ratio by 30 basis points and 20 basis points, respecti”