growth. pleased I'm as here our company we to continue and I'm history the excited time opportunity and Thank culture, on this today you, in Jim. an focus important serving to for be at innovation
results expenses unit Slide prior increased revenue or million growth in surcharge impact Virginia related revenue. as on XX, million This of across reflects the the a higher included results price. Looking quarter. X% market X% XX% the rights $XXX cycle the of versus includes impact the revenue, fuel COVID-XX. which at offset combined to financial gain we lower by was higher and growth fuel per These a X% the sale with Total were other from second to higher Revenue partially impacts year. of favorable pricing $XXX property quarter of every
on fuel the up would Excluding a of been expenses XX%. gain impact price, and volume X% property increase of the have
and inflation. address supply vast I critical topic inventory unit line, we've get news Before and by the the to XXXX. like costs adequate majority into lock for of would specifics worked materials commitments in for good have is, The I to of secured we
don't fuel, half. second locomotive this Excluding was move we just inflation X% above expense going to quarter much and that expect into the
year. don’t working and capital cost next to pressures things for for year on Several are shifts are any expect the sourcing of so critical and this productivity, increased infrastructure going into management. remain to supplier contracts materials We We overall on are to indicators, budget inventory ensure inventory core lagging change that will through our materials closely seeing offset capital adequate. we continue and monitor based levels
expense moving expense. for drove QX, to items increase the Higher in XX%. specific labor and Now, up $XX was inflation together volume fringe million down and a line
impacts. year higher payouts million downward incentive compensation for adjustments increased $XX COVID with projections prior award Additionally, related year on this to coupled
network sustain absorb on productivity to continue gains. the growth We and
we As increased the of conductors, continue to the power optimize we've work use and hire to plan. distributed
up active or Locomotive in is third productivity drivers. year, MS&O headcount $XX the continued million increases in the expense XXXX, the in measured total second expect from the year. this sequential second were quarter as horsepower per primary higher While and hour quarter and last increased count volumes flat available quarters. compared we GTMs fourth inflation to of X% the improved is year-end and roughly XXX approximately X% T&E
We expect recover. and further as even velocity this to cycle going times forward improve
as well are prices volume. by we our lift absorbing driving $XXX expense that terminals increased down intermodal XX% Fuel driven year-over-year. at cost container fuel efficiencies average with doubled addition, nearly and as million In per growth higher
state During settlement we to the fuel tax benefit matter. recorded also million the quarter related the $XX an of
to other earnings base. at offset on $X due at of expenses, increased Looking XX%. higher volume increased freight expense a primarily depreciation larger net affiliates. in quarter by was asset impact car Equipment partially million million The or $X higher rent rents the
a property transaction, significantly As result the dispositions the quarter. second increased on Virginia of gains in
to already this received, a year. transaction. phase are the As $XXX of million later gain proceeds million first next million expected Total reminder, $XXX the expected the $XXX related be and was during quarter to the remaining $XXX year, the including million
increased coupon XX.X% change Income approximately lower of and benefit points ratio million, out Closing as million higher held. quarter. debt statement, The increased legislative lower Turning tax favorable lower operating pre-tax and operating expense XXXX impacts partially $X a improved this of reported to mostly million, income. delivered Other due weighted expense by billion. rate below due a effective average were $XX the the including $X.X offset tax basis was balances. was property XX.X%, from The cash was line, on state income income gains. interest impacted income interest by $XXX a average pension to CSX
X% closed include expenses. results revenue acquisition Carriers operating will and related Quality these on The due to acquisition, impact line. expected of recorded to neutral July Quality Now relatively and will from integration this is year be in do approximately tracking X. other income the revenue revenue, which EPS to transaction to be the add and impact not CSX's the any
the quarter the split between cost On labor is of one of MS&O. side, rents. will and thirds fuel the it two depreciation About be expense rest hitting and about with
accelerate to products, leverage multimodal Going rail transaction our integrating CSX Quality growth forward supply chains. the to new further our customers extending expect offering reach into by and we
XX. on Now turning to cash Slide flow
Through As is cash XX% year. the flow team. free prior for $X.X was free major second quarter focus dividends up flow a billion versus know, you this cash the before
full of to income net year on basis. to Just is $XXX than in a remain free remains nearly in it elevated more that all $X flow cash XXXX. and flow company's generated billion. XXX%, Year-to-date million we expect at conversion balance The put cash that's level cash that context, near free on we
that Our million return buybacks. continue in our approach expectation and back opportunistic billion, business, $X.X for as $XXX remains this capital over are in returns shareholders. We to invest and balanced excess a shareholder Jim turn let time cash dividends. that, returning to and will remarks. to nearly we buybacks me approximately shareholders Year-to-date it committed to billion his $X.X including to the normalize remain with closing to With in