Statement of Financial Position
Statement of Financial Position, Classified (USD $) | ||
In Millions | Mar. 27, 2009
Unaudited | Dec. 26, 2008
|
Assets, Current [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $1,056 | $669 |
Short-term Investments | 73 | 76 |
Accounts Receivable, Net, Current | 958 | 1,107 |
Materials and Supplies | 250 | 217 |
Deferred Tax Assets, Net, Current | 151 | 203 |
Other Assets, Current | 112 | 119 |
Assets, Current, Total | 2,600 | 2,391 |
Property, Plant and Equipment, Net [Abstract] | ||
Property, Plant and Equipment, Gross | 30,399 | 30,208 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (7,637) | (7,520) |
Property, Plant and Equipment, Net | 22,762 | 22,688 |
Investment in Conrail | 617 | 609 |
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures | 399 | 406 |
Other Assets, Noncurrent | 189 | 194 |
Assets, Total | 26,567 | 26,288 |
Liabilities, Current [Abstract] | ||
Accounts Payable | 934 | 973 |
Employee-related Liabilities | 369 | 465 |
Casualty, Environmental and Other Reserves, Current | 217 | 236 |
Long-term Debt and Capital Lease Obligations, Current | 314 | 319 |
Taxes Payable | 116 | 125 |
Other Liabilities, Current | 120 | 286 |
Liabilities, Current, Total | 2,070 | 2,404 |
Casualty, Environmental and Other Reserves, Noncurrent | 636 | 643 |
Long-term Debt and Capital Lease Obligations | 7,995 | 7,512 |
Deferred Tax Liabilities, Noncurrent | 6,266 | 6,235 |
Other Liabilities, Noncurrent | 1,395 | 1,426 |
Liabilities, Total | 18,362 | 18,220 |
Stockholders' Equity [Abstract] | ||
Common Stock, Value | 392 | 391 |
Retained Earnings (Accumulated Deficit) | 8,534 | 8,398 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (742) | (741) |
Minority Interest | 21 | 20 |
Stockholders' Equity, Total | 8,205 | 8,068 |
Liabilities and Stockholders' Equity, Total | $26,567 | $26,288 |
Statement of Income (Excluding
Statement of Income (Excluding Gross Margin Alternative) (Unaudited, USD $) | ||
In Millions, except Share data | 3 Months Ended
Mar. 27, 2009 | 3 Months Ended
Mar. 28, 2008 |
Operating Income (Loss) [Abstract] | ||
Revenues | $2,247 | $2,713 |
Operating Expenses [Abstract] | ||
Labor and Related Expense | 662 | 745 |
Materials, Supplies and Other | 477 | 505 |
Fuel Costs | 191 | 441 |
Depreciation | 224 | 222 |
Equipment and Other Rents | 113 | 111 |
Inland Transportation | 58 | 63 |
Operating Expenses, Total | 1,725 | 2,087 |
Operating Income (Loss), Total | 522 | 626 |
Other Nonoperating Income (Expense) | (9) | 55 |
Interest Expense | (141) | (119) |
Earnings from Continuing Operations before Income Taxes | 372 | 562 |
Income Tax Expense (Benefit) | (126) | (211) |
Net Income (Loss), Total | $246 | $351 |
Earnings Per Share, Basic [Abstract] | ||
Earnings Per Share, Basic, Total | 0.63 | 0.87 |
Earnings Per Share, Diluted [Abstract] | ||
Earnings Per Share, Diluted, Total | 0.62 | 0.85 |
Weighted Average Number of Shares Outstanding, Basic | 391,160 | 404,351 |
Weighted Average Number of Diluted Shares Outstanding | 394,101 | 415,210 |
Common Stock, Dividends, Per Share, Cash Paid | 0.22 | 0.15 |
Statement of Cash Flows
Statement of Cash Flows (USD $) | ||
In Millions | 3 Months Ended
Mar. 27, 2009 Unaudited | 3 Months Ended
Mar. 28, 2008 Unaudited |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income (Loss) | $246 | $351 |
Adjustments to Reconcile Income (Loss) to Net Cash Provided by (Used in) Continuing Operations [Abstract] | ||
Depreciation | 224 | 225 |
Deferred Income Tax Expense (Benefit) | 79 | 89 |
Payments for (Proceeds from) Other Operating Activities | (65) | (24) |
Increase (Decrease) in Operating Capital [Abstract] | ||
Increase (Decrease) in Accounts Receivable | 132 | 3 |
Increase (Decrease) in Other Operating Assets | (76) | (13) |
Increase (Decrease) in Accounts Payable | (36) | 10 |
Increase (Decrease) in Accrued Income Taxes Payable | 31 | 84 |
Increase (Decrease) in Other Operating Liabilities | (86) | 9 |
Net Cash Provided by (Used in) Operating Activities, Total | 449 | 734 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Payments to Acquire Property, Plant, and Equipment | (309) | (446) |
Payments to Acquire Short-term Investments | 0 | (50) |
Proceeds from Sale of Short-term Investments | 0 | 295 |
Payments for (Proceeds from) Other Investing Activities | 37 | 12 |
Net Cash Provided by (Used in) Investing Activities, Total | (272) | (189) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Proceeds from Issuance of Long-term Debt | 500 | 1,000 |
Repayments of Long-term Debt | (26) | (44) |
Payments of Dividends | (86) | (61) |
Proceeds from Stock Options Exercised | 2 | 36 |
Payments for Repurchase of Equity | 0 | (300) |
Proceeds from (Payments for) Other Financing Activities | (180) | 26 |
Net Cash Provided by (Used in) Financing Activities, Total | 210 | 657 |
Cash and Cash Equivalents, Period Increase (Decrease), Total | 387 | 1,202 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 669 | 368 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $1,056 | $1,570 |
Notes to Financial Statements
Notes to Financial Statements (Unaudited) | |
3 Months Ended
Mar. 27, 2009 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 1. Nature of Operations and Significant Accounting Policies Background CSX Corporation ("CSX") together with its subsidiaries (the "Company"), based inJacksonville, Florida, is one of the nation's leading transportation suppliers.The Company's rail and intermodal businesses provide rail-based transportationservices including traditional rail service and the transport of intermodalcontainers and trailers. CSX's principal operating company, CSX Transportation, Inc. ("CSXT"), provides acrucial link to the transportation supply chain through its approximately 21,000route mile rail network, which serves major population centers in 23 states eastof the Mississippi River, the District of Columbia and the Canadian provinces ofOntario and Quebec. CSX Intermodal, Inc. ("Intermodal"), one of the nation'slargest coast-to-coast intermodal transportation providers, is a stand-alone,integrated intermodal company linking customers to railroads via trucks andterminals. Other entities In addition to CSXT, the rail segment includes non-railroad subsidiariesTotal Distribution Services, Inc. ("TDSI"), Transflo Terminal Services, Inc.("Transflo"), CSX Technology, Inc. ("CSX Technology") and other subsidiaries.TDSI serves the automotive industry with distribution centers and storagelocations, while Transflo provides logistical solutions for transferring products from rail to trucks. Technology and other support services areprovided by CSX Technology and other subsidiaries. CSX's other holdings include CSX Real Property, Inc., a subsidiaryresponsible for the Company's real estate sales, leasing, acquisition andmanagement and development activities, and Greenbrier Hotel Corporation, formerly known as CSX Hotels, Inc., doing business as The Greenbrier Resort. OnMarch 19, 2009, Greenbrier Hotel Corporation, filed for Chapter 11 bankruptcyprotection and announced an asset purchase agreement with Marriott HotelServices, Inc. For more information, see Note 8, Other Income (Expense) - Net. Basis of Presentation In the opinion of management, the accompanying consolidated financial statementscontain all normal, recurring adjustments necessary to fairly present thefollowing: - Consolidated income statements for the quarters ended March 27, 2009 andMarch 28, 2008; - Consolidated balance sheets at March 27, 2009 and December 26, 2008; and - Consolidated cash flow statements for the quarters ended March 27, 2009and March 28, 2008. Pursuant to the rules and regulations of the Securities and Exchange Commission("SEC"), certain information and disclosures normally included in the notes tothe annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omittedfrom these interim financial statements. CSX suggests that these financialstatements be read in conjunction with the audited financial statements and thenotes included in CSX's most recent Annual Report on Form 10 K, its most recentQuarterly Reports on Form 10-Q and any Current Reports on Form 8-K. Fiscal Year CSX follows a 52/53 week fiscal reporting calendar with the last day of eachreporting period ending on a Friday: - The first fiscal quarte |
Earnings Per Share Reconciliation Disclosure | NOTE 2. Earnings Per Share The following table sets forth the computation of basic earnings per shareand earnings per share, assuming dilution: First Quarters 2009 2008 Numerator (millions): Net Earnings $246 $351 Interest Expense on Convertible Debt - Net of Tax - 1 Net Earnings, If Converted $246 $352 Denominator (thousands): Average Common Shares Outstanding 391,160 404,351 Convertible Debt 1,118 5,717 Stock Options Common Stock Equivalents (a) 1,823 4,361 Other Potentially Dilutive Common Shares - 781 Average Common Shares Outstanding, Assuming Dilution 394,101415,210 Basic Earnings Per Share: Net Earnings $0.63 $0.87 Earnings Per Share, Assuming Dilution: Net Earnings $0.62 $0.85 (a) In calculating diluted earnings per share, SFAS 128, Earnings Per Sharerequires CSX to include the potential shares that would be outstanding if alloutstanding stock options were exercised. This is offset by shares CSX couldrepurchase using the proceeds from these hypothetical exercises to obtain thecommon stock equivalent. This number is different from outstanding stockoptions, which is included in Note 3, Share-Based Compensation. All stockoptions were dilutive for the periods presented; therefore no stock options wereexcluded from the diluted earnings per share calculation. Basic earnings per share is based on the weighted-average number of sharesof common stock outstanding. Earnings per share, assuming dilution, is based onthe weighted-average number of shares of common stock outstanding adjusted forthe effects of common stock that may be issued as a result of the followingtypes of potentially dilutive instruments: - convertible debt, - employee stock options, and - other equity awards, which include long-term incentive awards. EITF 04-8, The Effect of Contingently Convertible Debt on Diluted EarningsPer Share, requires CSX to include additional shares in the computation ofearnings per share, assuming dilution. The amount included in diluted earningsper share represents the number of shares that would be issued if all of CSX'soutstanding convertible debentures were converted into CSX common stock. As a result, diluted shares outstanding are not impacted when debenturesare converted into CSX common stock because those shares were already includedin the diluted shares calculation. Shares outstanding for basic earnings pershare, however, are impacted on a weighted average basis when conversions occur.During first quarter 2008, $25 million of face value of convertible debentureswere converted into approximately 1 million shares of CSX common stock. Therewere no conversions of convertible debentures during 2009. As of March 2009,approximately $32 million of convertible debentures at face value remainedoutstanding, which are convertible into 1 million shares of CSX common stock. |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 3. Share-Based Compensation CSX share-based compensation plans primarily include performance grants,restricted stock awards, stock options and stock plans for directors. CSX hasnot granted stock options since 2003. Awards granted under the various plansare determined and approved by the Compensation Committee of the Board ofDirectors or, in certain circumstances, by the Chief Executive Officer forawards to management employees other than senior executives. The Board ofDirectors approves awards granted to the Company's non-management Directors uponrecommendation of the Governance Committee. Total pre-tax expense associated with share-based compensation and its relatedincome tax benefit is as follows: First Quarters (Dollars in millions) 2009 (a) 2008Share-Based Compensation Expense $(8) $14Income Tax Expense / (Benefit) 3 (5) (a) In 2009, the Company reduced share-based compensation expense to reflecta change in estimate of the number of performance-based awards that areexpected to vest. The following table provides information about stock options exercised. First Quarters (In thousands) 2009 2008 Number of Stock Options Exercised 74 1,858 As of December 2008, all outstanding options are vested and therefore there willbe no future expense related to these options. As of March 2009, CSX hadapproximately 7 million stock options outstanding. However, the impact todiluted earnings per share is much smaller see Note 2, Earnings Per Share for more information. |
Casualty, Environmental, and Other Loss Contingency Disclosure | NOTE 4. Casualty, Environmental and Other Reserves Casualty, environmental and other reserves were determined to be criticalaccounting estimates due to the need for significant management judgments. Theyare provided for in the consolidated balance sheets as follows: March 27, 2009 December 26, 2008(Dollars in millions) Current Long-term Total CurrentLong-term Total Casualty: Personal Injury $101 $248 $349 $104 $258$362 Occupational 32 171 203 32 172 204 Total Casualty 133 419 552 136 430 566Separation 16 67 83 16 71 87Environmental 37 59 96 42 58 100Other 31 91 122 42 84 126 Total $217 $636 $853 $236 $643 $879 Details with respect to each type of reserve are described below. Actualsettlements and claims received could differ. The final outcome of thesematters cannot be predicted with certainty. Considering the legal defensesasserted, the liabilities that have been recorded, and other factors, it is theopinion of management that none of these items, when finally resolved, will havea material effect on the Company's financial condition, results of operations orliquidity. However, should a number of these items occur in the same period,they could have a material effect on the financial condition, results ofoperations or liquidity in that particular period. Casualty Casualty reserves represent accruals for personal injury and occupationalinjury claims. Currently, no individual claim is expected to exceed theCompany's self-insured retention amount. To the extent the value of anindividual claim exceeds the self-insured retention amount, the Company wouldpresent the liability on a gross basis with a corresponding receivable forinsurance recoveries. Personal injury and occupational claims are presented ona gross basis and in accordance with SFAS No. 5, Accounting for Contingencies("SFAS 5"). These reserves fluctuate based upon changes in independent thirdparty estimates, which are reviewed by management, and are offset by the timingof payments. Most of the claims were related to CSXT unless otherwise noted. Defense and processing costs, which historically have been insignificant and areanticipated to be insignificant in the future, are not included in the recordedliabilities. The Company is presently self-insured up to $25 million per injuryfor personal injury and occupational-related claims. Personal Injury Personal injury reserves represent liabilities for employee work-relatedand third- party injuries. Work-related injuries for CSXT employees areprimarily subject to the Federal Employers' Liability Act ("FELA"). In additionto FELA liabilities, employees of other CSX subsidiaries are covered by variousstate workers' compensation laws, the Federal Longshore and Harbor Workers'Compensation Program or the Maritime Jones Act. CSXT retains an independent actuarial firm to assist management in assessing thevalue of personal injury claims and cases. An analysis is performed by theindependent actuarial firm semi-annually and is reviewed by management. Themethodology used by the actuary includes a development factor to reflect growthor reduction in the value of these personal injury claims. It is based largelyon CSXT's historical claims and settlement exper |
Commitments Disclosure [Text Block] | NOTE 5. Commitments and Contingencies Insurance The Company maintains numerous insurance programs, most notably forthird-party casualty liability and for Company property damage and businessinterruption, with substantial limits. A certain amount of risk is retained bythe Company on each of the casualty and property programs. For the first eventin any given year, the Company has a $25 million deductible for each of thecasualty and non-catastrophic property programs and a $50 million deductible forthe catastrophic property program. Guarantees CSX and certain of its subsidiaries are contingently liable, individuallyand jointly with others, as guarantors of approximately $57 million inobligations principally relating to leased equipment, vessels and jointfacilities used by the Company in its current and former business operations.Utilizing the Company's guarantee for these obligations allows the obligor totake advantage of lower interest rates and obtain other favorable terms.Guarantees are contingent commitments issued by the Company that could requireCSX or one of its affiliates to make payment to, or to perform certain actionsfor, the beneficiary of the guarantee based on another entity's failure toperform. As of first quarter 2009, the Company's guarantees primarily related to thefollowing: - Guarantee of approximately $49 million of obligations of a formersubsidiary, CSX Energy, in connection with a sale-leaseback transaction. CSXis, in turn, indemnified by several subsequent owners of the subsidiary againstpayments made with respect to this guarantee. Management does not expect thatCSX will be required to make any payments under this guarantee for which CSXwill not be reimbursed. CSX's obligation under this guarantee will be completedin 2012. - Guarantee of approximately $8 million of lease commitments assumed by A.P.Moller-Maersk ("Maersk") for which CSX is contingently liable. CSX believesMaersk will fulfill its contractual commitments with respect to such leasecommitments, and CSX will have no further liabilities for those obligations.CSX's obligation under this guarantee will be completed in 2011. As of first quarter 2009, the Company has not recognized any liabilities in itsfinancial statements in connection with any guarantee arrangements describedabove. The maximum amount of future payments the Company could be required tomake under these guarantees is the sum of the guaranteed amounts. Fuel Surcharge Antitrust Litigation Since 2007, at least 30 putative class action suits have been filed in variousfederal district courts against CSXT and three other U.S.-based Class Irailroads. The lawsuits contain substantially similar allegations to the effectthat the defendants' fuel surcharge practices relating to contract andunregulated traffic resulted from an illegal conspiracy in violation ofantitrust laws. The suits seek unquantified treble damages (three times theamount of actual damages) allegedly sustained by purported class members,attorneys' fees and other relief. All but three of the lawsuits purport to befiled on behalf of a class of shippers that allegedly purchased rail freighttransportation services from the defendants through the |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 6. Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried,management personnel. The plans provide eligible employees with retirementbenefits based predominantly on years of service and compensation rates nearretirement. For employees hired after December 31, 2002, benefits aredetermined based on a cash balance formula, which provides benefits by utilizinginterest and pays credits based upon age, service and compensation. In addition to these plans, CSX sponsors a post-retirement medical plan and alife insurance plan that provide benefits to full-time, salaried, managementemployees hired on or before December 31, 2002 upon their retirement if certaineligibility requirements are met. The post-retirement medical plan iscontributory (partially funded by retirees), with retiree contributions adjustedannually. The life insurance plan is non-contributory. The following table describes the components of expense/(income) related to netperiodic benefit cost: Pension Benefits Other Post-retirement Benefits (Dollars in millions) First Quarters First Quarters 2009 2008 2009 2008Service Cost $8 $8 $1 $2Interest Cost 32 30 6 5Expected Return on Plan Assets (37) (36) - -Amortization of Prior Service Cost 1 1 - (1)Amortization of Net Loss 7 5 1 1 Net Periodic Benefit Cost $11 $8 $8 $7 In accordance with the Pension Protection Act of 2006 (the "Act"), companies arerequired to be 94% funded for their outstanding qualified pension obligations asof January 1, 2009 in order to avoid a scheduled series of required annualcontributions to reach 100% funding over seven years. Due to recent marketvolatility and overall investment losses of pension assets for 2008, the Companywill be required to make additional contributions to maintain at least a 94%funding target. The contribution is required to be made by September 2009. Forfurther details, see Note 7, Employee Benefit Plans, in CSX's most recent annual report on Form 10-K. |
Long-term Debt [Text Block] | NOTE 7. Debt and Credit Agreements Total activity related to long-term debt for first quarter 2009 was as follows: (Dollars in millions)Current PortionLong-term PortionTotal Long-term Debt ActivityTotal long-term debt at December 26, 2008 $319 $7,512 $7,831 2009 activity: Issued - 500 500 Repaid (26) - (26) Reclassifications 21 (21) - Other - 4 4 Total long-term debt at March 27, 2009 $314 $7,995 $8,309 Debt Issuance On January 14, 2009, CSX issued $500 million in one series of unsecured notes, which bear interest at 7.375% due February 1, 2019. This series of notes is included in the consolidated balance sheets under long-term debt. The notes may be redeemed in whole or in part by CSX at any time. CSX expects to use approximately $300 million of the net proceeds from the sale of the notes to repay debt maturing in the next twelve months. The balance of the net proceeds from the sale of the notes will be used for general corporate purposes, which may include capital expenditures, working capital requirements, improvements in productivity and repurchases of CSX common stock. Revolving Credit Facility CSX has a $1.25 billion unsecured revolving credit facility with a diverse syndicate of banks. The facility allows borrowings at floating rates based on the London interbank offered rate ("LIBOR"), plus a spread depending upon ratings assigned by Moody's Investors Service and Standard & Poor's Ratings Group to CSX's senior, unsecured, long-term indebtedness for borrowed money. The facility requires CSX to maintain a ratio of total debt to total capitalization below a prescribed limit. The facility contains no provisions that would require CSX to post collateral. As of March 2009, this facility was not drawn on, and CSX was in compliance with all covenant requirements under the facility. This facility expires in 2012. |
Other Income and Other Expense Disclosure [Text Block] | NOTE 8. Other Income (Expense) - Net Other Income (Expense) - Net consists of the following: First Quarters(Dollars in millions) 2009 2008Interest Income(a) $4 $8Income from Real Estate Operations (b) 1 30Loss from Resort Operations (c) (14) (16)Miscellaneous(d) - 33 Total Other Income (Expense) - Net $(9) $55 (a) Interest income fluctuates based on interest rates and balances thatearn interest based on CSX's cash, cash equivalents and short-term investments. (b) Income from real estate includes the results of operations of theCompany's non-operating real estate sales, leasing, acquisition and managementand development activities. Income may fluctuate as a function of timing ofreal estate sales. (c) The resort filed for Chapter 11 bankruptcy protection in March 2009.See below for further details. (d) Miscellaneous income includes a number of items which can be income orexpense. Examples of these items are equity earnings and/or losses, minorityinterest expense, investment gains and losses and other non-operating activities. In first quarter 2008, CSX recorded additional income of $30million for an adjustment to correct equity earnings from a non-consolidated subsidiary. Greenbrier Hotel Corporation Bankruptcy Filing On March 19, 2009, Greenbrier Hotel Corporation ("GHC"), owner of The Greenbrierresort and subsidiary of CSX Corporation, filed for Chapter 11 bankruptcyprotection in the U.S. Bankruptcy Court for the Eastern District of Virginia.CSX has agreed to extend up to $19 million in bankruptcy financing to GHC. In conjunction with the bankruptcy, GHC also announced an agreement to sell theresort pursuant to an asset purchase agreement ("Agreement") with Marriott HotelServices, Inc. ("Marriott"). The Agreement remains subject to the approval ofthe Bankruptcy Court and contemplates that CSX will provide $50 million to beused in the operations of the resort after completion of the sale. These fundsare expected to be paid over a two-year period following the closing of thetransaction. In turn, Marriott would pay GHC between $60 million and $130million within approximately seven years, with the actual amount depending onthe timing of the payment and The Greenbrier's financial performance. The sale to Marriott is expected to close later this year, but is contingent onvarious closing conditions, including the ability of The Greenbrier and itsunions to negotiate labor contracts satisfactory to Marriott. It is alsosubject to a Bankruptcy Court-supervised auction process in which otherqualified purchasers will have an opportunity to bid on the resort. Currently,the bid and auction process are scheduled in June 2009.At this time, this transaction does not qualify for discontinued operationsunder SFAS 144 Accounting for the Impairment or Disposal of Long-lived Assetsdue to the nature of certain closing conditions under the Agreement. Once theseconditions have been satisfied, it is likely that the resort's results ofoperations will be reclassified into discontinued operations. |
Income Tax Disclosure [Text Block] | NOTE 9. Income Taxes As of March 2009 and December 2008, the Company had approximately $48 millionand $57 million, respectively, of total unrecognized tax benefits. Afterconsideration of the impact of federal tax benefits, $41 million and $50million, respectively, could favorably affect the effective income tax rate. TheCompany estimates that approximately $12 million of the net unrecognized taxbenefits as of March 2009 for various state and federal income tax matters willbe resolved over the next 12 months. Approximately $4 million of this totalwill be recognizable upon the expiration of various statutes of limitation. Thefinal outcome of the remaining uncertain tax positions, however, is not yetdeterminable. As a result of the expiration of statutes of limitation and the resolution ofother income tax matters during the first quarter 2009, the Company recordedincome tax and interest benefits of $13 million. The Company files a consolidated federal income tax return, which includes itsprincipal domestic subsidiaries. CSX and its subsidiaries are subject to U.S.federal income tax as well as income tax of multiple state jurisdictions. During 2008, the Internal Revenue Service ("IRS") completed examinations of taxyears 2004 through 2006 as well as for 2007. The Company has appealed a taxadjustment proposed by the IRS with respect to the 2004 through 2006 period anda related amount is included in the uncertain tax positions above. This appealsprocess is expected to last more than one year. Federal examinations oforiginal federal income tax returns for all years through 2007 are otherwiseresolved. CSX's continuing practice is to recognize net interest and penalties related toincome tax matters in income tax expense. As of March 2009 and December 2008,the Company had a $5 million gross receivable and a $2 million gross payablebefore the consideration of state tax impacts, respectively, accrued forinterest and penalties. The payable changed to a receivable due to theexpiration of statutes of limitation noted above. |
Related Party Transactions Disclosure [Text Block] | NOTE 10. Related Party Transactions Through a limited liability company, CSX and Norfolk Southern Corporation ("NS")jointly own Conrail Inc., ("Conrail"). CSX has a 42% economic interest and 50%voting interest in the jointly-owned entity, and NS has the remainder of theeconomic and voting interests. Pursuant to APB Opinion 18, The Equity Method ofAccounting for Investments in Common Stock, CSX applies the equity method ofaccounting to its investment in Conrail. CSX's income statement is impacted in several ways by the joint ownership ofConrail. First, Conrail owns and operates rail infrastructure for the jointbenefit of CSX and NS. This is known as the shared asset area. Conrail chargesfees for right-of way usage, equipment rentals and transportation, switching andterminal service charges in the shared asset area. Next, because of CSX'sequity interest in Conrail, CSX also includes a share of Conrail's income whichis recorded as a contra-expense and reduces the total amount of expense recordedfor Conrail. The purchase price amortization primarily represents theadditional after-tax depreciation expense related to the write-up of Conrail'sfixed assets when the original purchase price, from the 1997 acquisition ofConrail, was allocated based on fair value. Last, interest expense is recordedon long-term payables to Conrail. Dollar amounts of these items impacting the consolidated income statements wereas follows: First Quarters (Dollars in millions) 2009 2008 Income Statement Information:Rents, Fees and Services $24 $26Equity in Income of Conrail (7) (5)Purchase Price Amortization and Other 1 1Interest Expense Related to Conrail 1 1 Additional information about the investment in Conrail is included in CSX's most recent Annual Report on Form 10-K. |
Segment Reporting Disclosure [Text Block] | NOTE 11. Business Segments The Company's consolidated operating income results are comprised of twobusiness segments: Rail and Intermodal. The Rail segment provides rail freighttransportation over a network of approximately 21,000 route miles in 23 states,the District of Columbia and the Canadian provinces of Ontario and Quebec. TheIntermodal segment provides integrated rail and truck transportation servicesand operates a network of dedicated intermodal facilities across North America.These segments are strategic business units that offer different services andare managed separately. Performance of the segment is evaluated and resourcesare allocated based on several factors, of which the principal financialmeasures are business segment operating income and operating ratio. Theaccounting policies of the segments are the same as those described in Note 1,Nature of Operations and Significant Accounting Policies, in CSX's most recentAnnual Report on Form 10-K. Business segment information for first quarters 2009 and 2008 is as follows: CSX (Dollars in millions) Rail (a) Intermodal Consolidated 2009 2008 2009 2008 2009 2008 $ ChangeRevenues from External Customers $1,977 $2,365 $270 $348$2,247 $2,713 $(466) Segment Operating Income 498 565 24 61 522 626(104) (a) In addition to CSXT, the Rail segment includes non-railroad subsidiariessuch as TDSI, Transflo, CSX Technology and other subsidiaries. |
Schedule of Condensed Financial Statements [Text Block] | NOTE 12. Summarized Consolidating Financial Data In December 2007, CSXT sold secured equipment notes maturing in 2023 and inOctober 2008, CSXT sold additional secured equipment notes maturing in 2014 inregistered public offerings pursuant to an existing shelf registration statement. CSX has fully and unconditionally guaranteed the notes. Inconnection with the notes, the Company is providing the following condensedconsolidating financial information in accordance with SEC disclosure requirements. Each entity in the consolidating financial information follows thesame accounting policies as described in the consolidated financial statements,except for the use of the equity method of accounting to reflect ownershipinterests in subsidiaries which are eliminated upon consolidation and theallocation of certain expenses of CSX incurred for the benefit of itssubsidiaries.Condensed consolidating financial information for the obligor and parentguarantor is as follows: Consolidating Income Statements (Dollars in Millions) Quarter Ended March 2009 CSX Corporation CSX Transportation OtherEliminations ConsolidatedOperating Revenue $ - $1,960 $313 $(26) $2,247Operating Expense (79) 1,563 265 (24) 1,725Operating Income 79 397 48 (2) 522 Equity in Earnings of Subsidiaries 255 - - (255) -Interest Expense (124) (31) (1) 15 (141) Other Income (Expense) 302 6 (304) (13) (9) Earnings from Continuing Operations before Income Taxes 512 372 (257) (255) 372Income Tax Benefit (Expense) (266) (140) 280 - (126)Net Earnings $246 $232 $23 $(255) $246 Quarter Ended March 2008 CSX Corporation CSX Transportation OtherEliminations ConsolidatedOperating Revenue $ - $2,344 $406 $(37) $2,713Operating Expense (57) 1,863 315 (34) 2,087Operating Income 57 481 91 (3) 626 Equity in Earnings of Subsidiaries 371 - - (371) -Interest Expense (134) (43) (7) 65 (119) Other Income (Expense) 40 70 7 (62) 55 Earnings from Continuing Operations before Income Taxes 334 508 91 (371) 562Income Tax Benefit (Expense) 17 (193) (35) - (211)Net Earnings $351 $315 $56 $(371) $351 Consolidating Balance Sheet (Dollars in Millions) CSX CSXMarch 2009 Corporation Transportation Other EliminationsConsolidated ASSETS Current Assets Cash and Cash Equivalents $928 $70 $58 $ -$1,056 Short-term Investments - - 73 - 73 Accounts Receivable - Net 133 932 (107) - 958 Materials and Supplies - 250 - - 250 Deferred Income Taxes 12 133 6 - 151 Other Current Assets 67 84 69 (108) 112 Total Current Assets 1,140 1,469 99 (108)2,600 Properties 7 29,139 1,253 - 30,399 Accumulated Depreciation (9) (6,857) (771) -(7,637) Properties - Net (2) 22,282 482 - 22,762 Investments in Conrail - - 617 - 617Affiliates and Other Companies - 522 (123) - 399Investments in Consolidated Subsidiaries 14,687 - 44(14,731) -Other Long-term Assets 49 76 107 (43) 189 Total Assets $15,874 $24,349 $1,226 $(14,882)$26,567 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $131 $809 $(6) $ - $934 Labor and Fringe Benefits Payable 30 309 30 - 369 Payable to Affiliates 398 782 (1,113) (67) - Casualty, Environmental and Other Reserves - 197 20 -217 Current Maturities of Long-term Debt 200 111 3 -314 Income and Other Taxes Payable (8) 2 |
Document Information
Document Information (Unaudited) | |
3 Months Ended
Mar. 27, 2009 | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Amendment Description | NONE |
Document Period End Date | 2009-03-27 |
Entity Information
Entity Information (Unaudited, USD $) | |
3 Months Ended
Mar. 27, 2009 | |
Entity [Text Block] | CSX CORPORATION |
Entity Information [Line Items] | |
Entity Registrant Name | CSX CORPORATION |
Entity Central Index Key | 0000277948 |
Entity Information, Current Legal or Registered Name | CSX CORPORATION |
Current Fiscal Year End Date | --12-25 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 391,459,772 |