CSX (CSX) 10-Q 15 Jul 09 2009 Q2 Quarterly report Financial data

100 - CONSOLIDATED INCOME STATE

100 - CONSOLIDATED INCOME STATEMENTS (USD $)
In Millions, except Share data	3 Months Ended Jun. 26, 2009	3 Months Ended Jun. 27, 2008	6 Months Ended Jun. 26, 2009	6 Months Ended Jun. 27, 2008
Revenue	$2,185	$2,907	$4,432	$5,620
Expense
Labor and Fringe	654	733	1,316	1,478
Materials, Supplies and Other	368	513	845	1,018
Fuel	185	537	376	978
Depreciation	229	227	453	449
Equipment and Other Rents	98	112	211	223
Inland Transportation	69	68	127	131
Total Expense	1,603	2,190	3,328	4,277
Operating Income	582	717	1,104	1,343
Interest Expense	(139)	(133)	(280)	(252)
Other Income - Net (Note 8)	10	17	13	89
Earnings from Continuing Operations Before Income Taxes	453	601	837	1,180
Income Tax Expense (Note 9)	(168)	(209)	(298)	(426)
Earnings From Continuing Operations	285	392	539	754
Discontinued Operations (Note 11)	23	(7)	15	(18)
Net Earnings	$308	$385	$554	$736
Net Earnings Per Share, Basic
Continuing Operations	0.73	0.97	1.37	1.86
Discontinued Operations	0.06	-0.02	0.04	-0.04
Net Earnings	0.79	0.95	1.41	1.82
Net Earnings Per Share, Assuming Dilution
Continuing Operations	0.72	0.95	1.36	1.82
Discontinued Operations	0.06	-0.02	0.04	-0.04
Net Earnings	0.78	0.93	1.4	1.78
Average Shares Outstanding (Thousands)	392,027	406,205	391,594	405,278
Average Shares Outstanding, Assuming Dilution (Thousands)	395,370	415,112	394,735	415,161
Cash Dividends Paid Per Common Share	0.22	0.18	0.44	0.33

200 - CONSOLIDATED BALANCE SHEE

200 - CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Jun. 26, 2009	Dec. 26, 2008
Current Assets
Cash and Cash Equivalents	$1,108	$669
Short-term Investments	70	76
Accounts Receivable - Net (Note 1)	885	1,107
Materials and Supplies	254	217
Deferred Income Taxes	159	203
Other Current Assets	160	119
Total Current Assets	2,636	2,391
Properties	30,584	30,208
Accumulated Depreciation	(7,697)	(7,520)
Properties - Net	22,887	22,688
Investment in Conrail (Note 10)	622	609
Affiliates and Other Companies	405	406
Other Long-term Assets	185	194
Total Assets	26,735	26,288
Current Liabilities
Accounts Payable	904	973
Labor and Fringe Benefits Payable	349	465
Casualty, Environmental and Other Reserves (Note 4)	181	236
Current Maturities of Long-term Debt (Note 7)	318	319
Income and Other Taxes Payable	110	125
Other Current Liabilities	99	286
Total Current Liabilities	1,961	2,404
Casualty, Environmental and Other Reserves (Note 4)	579	643
Long-term Debt (Note 7)	7,933	7,512
Deferred Income Taxes	6,417	6,235
Other Long-term Liabilities	1,389	1,426
Total Liabilities	18,279	18,220
Common Stock $1 Par Value	392	391
Other Capital	29	0
Retained Earnings	8,757	8,398
Accumulated Other Comprehensive Loss (Note 1)	(735)	(741)
Noncontrolling Minority Interest	13	20
Total Shareholders' Equity	8,456	8,068
Total Liabilities and Shareholders' Equity	$26,735	$26,288

300 - CONSOLIDATED CASH FLOW ST

300 - CONSOLIDATED CASH FLOW STATEMENTS (USD $)
In Millions	6 Months Ended Jun. 26, 2009	6 Months Ended Jun. 27, 2008
OPERATING ACTIVITIES
Net Earnings	$554	$736
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities:
Depreciation	454	456
Deferred Income Taxes	212	201
Other Operating Activities	(172)	(30)
Changes in Operating Assets and Liabilities:
Accounts Receivable	202	(44)
Other Current Assets	(83)	(16)
Accounts Payable	(56)	35
Income and Other Taxes Payable	(13)	9
Other Current Liabilities	(117)	(4)
Net Cash Provided by Operating Activities	981	1,343
INVESTING ACTIVITIES
Property Additions	(667)	(912)
Purchases of Short-term Investments	0	(25)
Proceeds from Sales of Short-term Investments	0	280
Other Investing Activities	49	(1)
Net Cash Used in Investing Activities	(618)	(658)
FINANCING ACTIVITIES
Long-term Debt Issued (Note 7)	500	1,000
Long-term Debt Repaid (Note 7)	(83)	(176)
Dividends Paid	(176)	(134)
Stock Options Exercised (Note 3)	12	65
Shares Repurchased	0	(453)
Other Financing Activities	(177)	43
Net Cash Provided by Financing Activities	76	345
Net Increase in Cash and Cash Equivalents	439	1,030
Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period	669	368
Cash and Cash Equivalents at End of Period	$1,108	$1,398

500 - Nature of Operations and

500 - Nature of Operations and Significant Accounting Policies
	6 Months Ended Jun. 26, 2009
Nature of Operations and Significant Accounting Policies
Nature of Operations and Significant Accounting Policies	NOTE 1.Nature of Operations and Significant Accounting Policies Background CSX Corporation (CSX) together with its subsidiaries (the Company), based in Jacksonville, Florida, is one of the nation's leading transportation suppliers.The Companys rail and intermodal businesses provide rail-based transportation services including traditional rail service and the transport of intermodal containersand trailers. CSXs principal operating subsidiary, CSX Transportation, Inc. (CSXT), provides an important link to the transportation supply chain through its approximately 21,000 route mile rail network, which serves major population centers in 23 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontarioand Quebec. CSX Intermodal, Inc. (Intermodal), one of the nations largest coast-to-coast intermodal transportation providers,is a stand-alone, integrated intermodal company linking customers to railroads via trucks and terminals. Other entities In addition to CSXT, the rail segment includes non-railroad subsidiaries Total Distribution Services, Inc. (TDSI), Transflo Terminal Services, Inc. (Transflo), CSX Technology, Inc. (CSX Technology) and other subsidiaries. TDSI serves the automotive industry with distribution centersand storage locations, while Transflo provides logistical solutions for transferring products from rail to trucks. Technology and other support services are provided by CSX Technology and other subsidiaries. CSXs other holdings include CSX Real Property, Inc., a subsidiary responsible for the Companys real estate sales, leasing, acquisition and management and development activities. In May 2009, CSX sold the stock of The Greenbrier Hotel Corporation, owner of The Greenbrier resort.For more information, see Note 11, Discontinued Operations. Basis of Presentation In the opinion of management, the accompanying consolidated financial statements contain all normal, recurring adjustments necessary to fairly present the following: Consolidated income statements for the quarters and six months ended June 26, 2009 and June 27, 2008; Consolidated balance sheets at June 26, 2009 and December 26, 2008; and Consolidated cash flow statements for the six months ended June 26, 2009 and June 27, 2008. In addition, management has evaluated and disclosed all material events occurring subsequent to the date of the financial statements up to the date this quarterly report is filed on Form 10-Q. Pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted from these interim financialstatements.CSX suggests that these financial statements be read in conjunction with the audited financial statements and the notes included in CSX's most recent Annual Report on Form 10-K, its subsequent Quarterly 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 each reporting

505 - Earnings Per Share

505 - Earnings Per Share
	6 Months Ended Jun. 26, 2009
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 2.Earnings Per Share The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution: Second Quarters Six Months 2009 2008 2009 2008 Numerator (Dollars in millions): Earnings from Continuing Operations $285 $392 $539 $754 Interest Expense on Convertible Debt - Net of Tax - - - 1 Earnings from Continuing Operations, If Converted 285 392 539 755 Discontinued Operations - Net of Tax(a) 23 (7) 15 (18) Net Earnings, If Converted 308 385 554 737 Interest Expense on Convertible Debt - Net of Tax - - - (1) Net Earnings $308 $385 $554 $736 Denominator (Units in thousands): Average Common Shares Outstanding 392,027 406,205 391,594 405,278 Convertible Debt 1,118 3,729 1,118 4,723 Stock Option Common Stock Equivalents (b) 1,989 4,170 1,906 4,266 Other Potentially Dilutive Common Shares 236 1,008 117 894 Average Common Shares Outstanding, Assuming Dilution 395,370 415,112 394,735 415,161 Net Earnings Per Share, Basic: Continuing Operations $0.73 $0.97 $1.37 $1.86 Discontinued Operations 0.06 (0.02) 0.04 (0.04) Net Earnings $0.79 $0.95 $1.41 $1.82 Net Earnings Per Share, Assuming Dilution: Continuing Operations $0.72 $0.95 $1.36 $1.82 Discontinued Operations 0.06 (0.02) 0.04 (0.04) Net Earnings $0.78 $0.93 $1.40 $1.78 (a) For additional information regarding discontinued operations, see Note 11, Discontinued Operations. (b) In calculating diluted earnings per share, SFAS 128, Earnings Per Share requires CSX to include the potential shares that would be outstanding if all outstanding stock options were exercised.This is offset by shares CSX could repurchase using the proceeds from these hypothetical exercises toobtain the common stock equivalent.This number is different from outstanding stock options, which is included in Note 3, Share-Based Compensation.All stock options were dilutive for the periods presented; therefore no stock options were excluded from the diluted earnings per share calculation. Basic earnings per share is based on the weighted-average number of shares of common stock outstanding.Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock outstanding adjusted for the effects of common stock that may be issuedas a result of the following types 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 Earnings Per Share, requires CSX to include additional shares in the computation of earnings per share, assuming dilution.The amount, included in dilutedearnings per share, represents the number of shares that would be issued if all of CSXs outstanding convertible debentures were converted into CSX common st

510 - Share Based Compensation

510 - Share Based Compensation
	6 Months Ended Jun. 26, 2009
Share-based Compensation [Abstract]
Share-Based Compensation	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 has not granted stock options since 2003.Awards granted under the various plans are determined and approved by the Compensation Committee of the Board of Directors or,in certain circumstances, by the Chief Executive Officer for awards to management employees other than senior executives.The Board of Directors approves awards granted to the Companys non-management Directors upon recommendation of the Governance Committee. Total pre-tax expense associated with share-based compensation and its related income tax benefit is as follows: Second Quarters Six Months (Dollars in millions) 2009 2008 2009 2008 Share-Based Compensation Expense (a) $11 $10 $3 $24 Income Tax Benefit (4) (4) (1) (9) (a) Share-based compensation expense may fluctuate with estimates of the number of performance-based awards that are expected to be awarded in future periods. The following table provides information about stock options exercised. Second Quarters Six Months (In thousands) 2009 2008 2009 2008 Number of Stock Options Exercised 492 1,562 566 3,420 As of December 2008, all outstanding options are vested, and therefore, there will be no future expense related to these options. As of June 2009, CSX had approximately 7 million stock options outstanding. However, the impact of options to diluted earningsper share is much smaller (see footnote b in Note 2, Earnings Per Share for more information).

515 - Casualty, Environmental a

515 - Casualty, Environmental and Other Reserves
	6 Months Ended Jun. 26, 2009
Casualty Environmental and Other Reserves
Casualty, Environmental and Other Reserves	NOTE 4.Casualty, Environmental and Other Reserves Casualty, environmental and other reserves were determined to be critical accounting estimates due to the need for significant management judgments. They are provided for in the consolidated balance sheets as follows: June 2009 December 2008 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $79 $223 $302 $104 $258 $362 Occupational 22 165 187 32 172 204 Total Casualty 101 388 489 136 430 566 Separation 15 64 79 16 71 87 Environmental 37 56 93 42 58 100 Other 28 71 99 42 84 126 Total $181 $579 $760 $236 $643 $879 Details with respect to each type of reserve are described below.Actual settlements and claims received could differ.The final outcome of these matters cannot be predicted with certainty.Considering the legal defenses asserted, the liabilities that havebeen recorded, and other factors, it is the opinion of management that none of these items, when finally resolved, will have a material effect on the Companys financial condition, results of operations or liquidity.However, should a number of these items occur in the same period, they could have a material effect on the Companys financial condition, results of operations or liquidity in that particular period. During the second quarter of 2009, the Company reduced casualty reserves by a net $85 million.The majority of this reduction is related to personal injury and asbestos and is described below.Also included in the net reduction is a write-off of$11 million of reinsurance receivables (expected receivables from outside insurance companies).This receivable write-off is not included in the reserve amounts disclosed above. Casualty Casualty reserves represent accruals for personal injury and occupational injury claims.Currently, no individual claim is expected to exceed the Companys self-insured retention amount.To the extent the value of an individual claim exceeds the self-insured retentionamount, the Company would present the liability on a gross basis with a corresponding receivable for insurance recoveries.Personal injury and occupational claims are presented on a gross basis and in accordance with SFAS No. 5, Accounting for Contingencies (SFAS 5).These reserves fluctuate based upon the timing of payments as well as changes in independent third party estimates, which are reviewed by management.Most of the claims were related to CSXT unless otherwise noted. Defense and processing costs, which historically have been insignificant and are anticipated to be insignificant in the future, are not included in the recorded liabilities. The Company is presently self-insured up to $25 million per injury for personal injury and occupational-related claims. Personal Injury Personal injury reserves represent liabilities for employee work-related and third- party injuries. Work-related injuries for CSXT employees are primarily subject to the Federal Employers Liability Act (FELA).

520 - Commitments and Contingen

520 - Commitments and Contingencies
	6 Months Ended Jun. 26, 2009
Commitments and Contingencies
Commitments and Contingencies	NOTE 5.Commitments and Contingencies Insurance The Company maintains numerous insurance programs, most notably for third-party casualty liability and for Company property damage and business interruption, with substantial limits.A certain amount of risk is retained by the Company on each of the casualty and property programs. For the first event in any given year, the Company has a $25 million deductible for each of the casualty and non-catastrophic property programs and a $50 million deductible for the catastrophic property program. Guarantees CSX and certain of its subsidiaries are contingently liable, individually and jointly with others, as guarantors of approximately $41 million in obligations principally relating to leased equipment, vessels and joint facilities used by the Company in its current and former business operations.Utilizing the Companys guarantee for these obligations allows the obligor to take advantage of lower interest rates and obtain other favorable terms.Guarantees are contingent commitments issued by the Company that could require CSX or one of its affiliates to make payment to, or to perform certain actions for, the beneficiary of the guarantee based on another entitys failure to perform.These guarantees do not include CSXs guarantee of applicable CSXTs secured notes because these notes are includedon CSXs consolidated balance sheet. As of second quarter 2009, the Companys guarantees primarily related to the following: Guarantee of approximately $37 million of obligations of a former subsidiary, CSX Energy, in connection with a sale-leaseback transaction. CSX is, in turn, indemnified by several subsequent owners of the entity against payments made with respect to this guarantee.Management does not expect that CSX will be required to make any payments under this guarantee for which CSX will not be reimbursed.CSXs obligation under this guarantee will be completed in 2012. Guarantee of approximately $4 million of lease commitments assumed by A.P. Moller-Maersk (Maersk) for which CSX is contingently liable. CSX believes Maersk will fulfill its contractual commitments with respect to such lease commitments, and CSX will have no further liabilities for those obligations.CSXs obligation under this guaranteewill be completed in 2011. As of second quarter 2009, the Company has not recognized any liabilities in its financial statements in connection with any guarantee arrangements described above.The maximum amount of future payments the Company could be required to make under these guarantees is the sum of the guaranteed amounts. Fuel Surcharge Antitrust Litigation Since 2007, at least 31putative class action suits have been filed in various federal district courts against CSXT and three other U.S.-based Class I railroads.The lawsuits contain substantially similar allegations to the effect that the defendants fuel surcharge practices relating to contract and unregulated trafficresulted from an illegal conspiracy in violation of antitrust laws.The suits seek unquantified treble damages (three times the amount of actual damages) allegedly sustained by purported class members, attorneys fees and other reli

525 - Employee Benefit Plans

525 - Employee Benefit Plans
	6 Months Ended Jun. 26, 2009
Employee Benefit Plans
Employee Benefit Plans	NOTE 6.Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel.The plans provide eligible employees with retirement benefits based predominantly on years of service and compensation rates near retirement.For employees hired after December 31, 2002, benefits are determined based on a cash balance formula, which provides benefits by utilizing interest and pays credits based upon age, service and compensation. In addition to these plans, CSX sponsors a post-retirement medical plan and a life insurance plan that provide benefits to full-time, salaried, management employees hired on or before December 31, 2002 upon their retirement if certain eligibility requirements are met.The post-retirement medical plan is contributory (partiallyfunded by retirees), with retiree contributions adjusted annually.The life insurance plan is non-contributory. The following table describes the components of expense/(income) related to net periodic benefit cost: Pension Benefits (Dollars in millions) Second Quarters Six Months 2009 2008 2009 2008 Service Cost $8 $9 $16 $17 Interest Cost 32 30 62 60 Expected Return on Plan Assets (36) (36) (71) (72) Amortization of Prior Service Cost - - 1 1 Amortization of Net Loss 7 6 13 11 Net Periodic Benefit Cost $11 $9 $21 $17 Other Post-retirement Benefits (Dollars in millions) Second Quarters Six Months 2009 2008 2009 2008 Service Cost $1 $1 $2 $3 Interest Cost 6 5 12 10 Amortization of Prior Service Cost - - - (1) Amortization of Net Loss 1 1 2 2 Net Periodic Benefit Cost $8 $7 $16 $14 In accordance with the Pension Protection Act of 2006, companies are required to be 94% funded for their outstanding qualified pension obligations as of January 1, 2009 in order to avoid a scheduled series of required annual contributions.Due to recent market volatility and overall investment losses of pension assets for 2008, the Company willbe required to make additional contributions to maintain at least a 94% funding target.While required minimum contributions in 2009 are estimated to be approximately $5 million, the Company intends to pre-fund future contributions up to $250 million, or $160 million after-tax, to its pension plans in 2009.For further details, see Note 7, Employee Benefit Plans, in CSXs most recent Annual Report on Form 10-K.

530 - Debt and Credit Agreement

530 - Debt and Credit Agreements
	6 Months Ended Jun. 26, 2009
Debt and Credit Agreements
Debt and Credit Agreements	NOTE 7. Debt and Credit Agreements Total activity related to long-term debt as of June 2009 was as follows: (Dollars in millions) Current Portion Long-term Portion Total Long-term Debt Activity Total long-term debt at December 2008 $319 $7,512 $7,831 2009 activity: Issued - 500 500 Repaid (83) - (83) Reclassifications 82 (82) - Other - 3 3 Total long-term debt at June 2009 $318 $7,933 $8,251 For fair value information related to the Companys long-term debt, see Note 12, Fair Value Measurements. Revolving Credit Facility CSX has a $1.25 billion unsecured revolving credit facility with a syndicate of banks. The facility allows borrowings at floating rates based on the London interbank offered rate ("LIBOR"), plus a spread depending uponratings assigned by Moody's Investors Serviceand Standard Poor's Ratings Group to CSX's senior,unsecured, long-term indebtedness for borrowed money. The facility requires CSX to maintaina ratio of total debt to total capitalization below a prescribed limit. The facilitycontains no provisionsthatwould require CSX to post collateral. As of June 2009, this facility was not drawn on, and CSX was in compliance with all covenant requirements under the facility.Thisfacility expires in2012.

535 - Other Income

535 - Other Income (Expense), Net
	6 Months Ended Jun. 26, 2009
Other Income Expense Net
Other Income - Net	NOTE 8.Other Income - Net The Company derives income from items that are not considered operating activities.Income from these items is reported net of related expense in other income net on the consolidated income statements.Other income net consists of interestincome, income from real estate and miscellaneous income (expense).Interest income fluctuates as a result of interest rates and balances that earn interest based on CSXs cash, cash equivalents and short-term investments.Income from real estate includes the results of operations of the Companys non-operating real estate sales, leasing, acquisition and management and development activities.Income from real estate may fluctuate as a function of timing of real estate sales.Miscellaneous income includes a number of items which can be income or expense.Examples of these items are equity earnings and/or losses, noncontrolling minority interest expense, investment gains and losses and other non-operating activities.Other income net consists of the following: Second Quarters Six Months (Dollars in millions) 2009 2008 2009 2008 Interest Income $3 $13 $7 $21 Income from Real Estate 6 3 7 33 Miscellaneous Income (Expense)(a) 1 1 (1) 35 Total Other Income - Net $10 $17 $13 $89 (a)In first quarter 2008, CSX recorded additional income of $30 million for an adjustment to correct equity earnings from a non-consolidated subsidiary. Previously, the results of operations from the Greenbrier resort were in included in other income net.In May 2009, CSX sold the stock of The Greenbrier Hotel Corporation, owner of The Greenbrier resort.The results of The Greenbriers operations arenow presented in discontinued operations on the consolidated income statements and all prior periods have been reclassified.For more information, see Note 11, Discontinued Operations.

540 - Income Taxes

540 - Income Taxes
	6 Months Ended Jun. 26, 2009
Income Taxes
Income Taxes	NOTE 9.Income Taxes As of June 2009 and December 2008, the Company had approximately $49 million and $57 million of total unrecognized tax benefits, respectively. For the same periods, after consideration of the impact of federal tax benefits, $42 million and $50 million, respectively, of net unrecognized tax benefits could favorably affect the effective income tax rate.As of June 2009, the Company estimates that approximately $13 million of the net unrecognized tax benefits for various state and federal income tax matters will be resolved over the next 12 months.Approximately $4 million of this total will be recognizable upon the expiration of various statutes of limitation.The final outcome of the remaining uncertain tax positions, however, is not yet determinable. During second quarter 2008, the Internal Revenue Service (IRS) completed its examination of tax years 2004 through 2006. As a result of this and the resolution of other income tax matters, the Company recorded an income tax benefit of $18 million. The Company files a consolidated federal income tax return, which includes its principal 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 tax years2004 through 2006 as well as for 2007.The Company has appealed a tax adjustment proposed by the IRS with respect to the 2004 through 2006 period and a related amount is included in the uncertain tax positions above.This appeals process is expected to last more than one year.Federal examinations of original federal income tax returns for all years through 2007 are otherwise resolved. CSXs continuing practice is to recognize interest and penalties (net of related federal or state tax benefits or expense) associated with income tax matters in income tax expense.As of June 2009 and December 2008, the Company had a $5 million gross receivableand a $2 million gross payable before the consideration of state tax impacts, respectively, accrued for interest and penalties.The payable changed to a receivable due to the expiration of statutes of limitation noted above.

545 - Related Party Transaction

545 - Related Party Transactions
	6 Months Ended Jun. 26, 2009
Related Party Transactions
Related Party Transactions	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 of Accounting for Investments in Common Stock,CSX applies the equity method of accounting to its investment in Conrail. At June 2009 and December 2008, CSX's investment in Conrail was $622 million and $609 million, respectively. CSXs income statement is impacted in several ways by the joint ownership of Conrail. First, Conrail owns and operates rail infrastructure for the joint benefit of CSX and NS. This is known as the shared asset area. Conrail charges fees for right-of way usage, equipment rentals and transportation, and switching and terminalservice charges in the shared asset area. Next, because of CSXs equity interest in Conrail, CSX also includes a share of Conrails income which is recorded as a contra-expense and reduces the total amount of expense recorded for Conrail. Also, purchase price amortization primarily represents the additional after-tax depreciation expense related to the write-up of Conrails fixed assets when the original purchase price, from the 1997 acquisition of Conrail, was allocated based on fair value. Lastly, interest expense is recorded on long-term payables to Conrail. Dollar amounts of these items impacting the consolidated income statements were as follows: Second Quarters Six Months (Dollars in millions) 2009 2008 2009 2008 Income Statement Information: Rents, Fees and Services $26 $27 $50 $53 Equity in Income of Conrail (7) (6) (14) (12) Purchase Price Amortization and Other 1 1 2 2 Interest Expense Related to Conrail 1 1 2 2 Income Statement Impact $21 $23 $40 $45 Additional information about the investment in Conrail is included in CSXs most recent Annual Report on Form 10-K.

550 - Discontinued Operations

550 - Discontinued Operations
	6 Months Ended Jun. 26, 2009
Discontinued Operations
Discontinued Operations	NOTE 11.Discontinued Operations As previously reported, in March 2009, Greenbrier Hotel Corporation (GHC), owner of The Greenbrier resort and then an indirect subsidiary of CSX, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division (Bankruptcy Court).In conjunctionwith the bankruptcy, GHC also announced an agreement to sell the resort pursuant to an asset purchase agreement with Marriott Hotel Services, Inc. (the APA). On May 6, 2009, CSX sold the stock of a subsidiary that indirectly owned GHC to Justice Family Group, LLC (JFG) for approximately $21 million in cash.CSX recognized a gain on the sale of $25 million after tax in the second quarter of 2009.The gain was calculated using cash proceeds, net book value, deal-related costs incurred and tax benefits.The previously reported bankruptcy financing that CSX made available to The Greenbrier was paid down and no amounts were outstanding thereunder at the time of the sale.On May 21, 2009, the Bankruptcy Court entered an order dismissing GHCs bankruptcy proceeding and terminating the APA.CSX has no continuing obligations to finance post-sale resort operations.CSX has retained responsibility for certain pre-closing Greenbrier pensionobligations. This transaction is reportable as discontinued operations under SFAS No. 144, Accounting for Impairment or Disposal of Long-Lived Assets (SFAS 144).Therefore, the gain on sale as well as losses from operations will be reported as discontinued operations.Previously,all amounts associated with the operations of The Greenbrier were included in Other Income.All prior periods have been reclassified to reflect this change. Income statement information: Second Quarters Six Months (Dollars in millions) 2009 2008 2009 2008 Net Losses From Operations, after tax $(2) $(7) $(10) $(18) Gain on Sale, after tax 25 - 25 - Net Income (Loss) From Discontinued Operations $23 $(7) $15 $(18) Earnings per Share From Discontinued Operations, Assuming Dilution $0.06 $(0.02) $0.04 $(0.04)

555 - Fair Value Measurements

555 - Fair Value Measurements
	6 Months Ended Jun. 26, 2009
Fair Value Measurements
Fair Value Measurements	NOTE 12.Fair Value Measurements In May 2009, the FASB issued Staff Position No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments, whichrequiresdisclosuresabout fair value of financial instruments in quarterly reports as well as in annual reports.For CSX, this statement applies to certain investments and long-term debt and is effective beginning second quarter 2009. SFAS No. 157, Fair Value Measurements clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the value of the Companys investments.The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities.These inputs are summarized in the three broad levels listed below. Level 1 observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets Level 2 other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.) Level 3 significant unobservable inputs (including the Companys own assumptions in determining the fair value of investments) The Companys investment assets are valued by a third-party trustee, consist primarily of corporate bonds and are carried at fair value on the consolidated balance sheet.As of June 2009, these bonds had a fair value of $115 million.All inputs used to determine fair value are considered level 2 inputs. Long-term debt is the only financial instrument of CSX with fair values significantly different from their carrying amounts. The fair value of long-term debt has been estimated using discounted cash flow analysis based upon CSX's current incremental borrowing rates for similar types of financing arrangements which are considered level 2 inputs. The fair value of outstanding debt fluctuates with changes in applicable interest rates.Fair value will exceed carrying value when the current market interest rate is lower thanthe interest rate at which the debt was originally issued.The fair value and carrying value of the Companys long-term debt is as follows: (Dollars in millions) June 2009 December 2008 Long-term Debt Including Current Maturities: Fair Value $8,568 $7,415 Carrying Value $8,251 $7,831

560 - Business Segments

560 - Business Segments
	6 Months Ended Jun. 26, 2009
Business Segments
Business Segments	NOTE 13.Business Segments The Companys consolidated operating income results are comprised of two business segments: Rail and Intermodal.The Rail segment provides rail freight transportation over a network of approximately 21,000 route miles in 23 states, the District of Columbia and the Canadian provinces of Ontario and Quebec. The Intermodal segmentprovides integrated rail and truck transportation services and operates a network of dedicated intermodal facilities across North America.These segments are strategic business units that offer different services and are managed separately.Performance of the segment is evaluated and resources are allocated based on several factors, of which the principal financial measures are business segment operating income and operating ratio.The accounting policies of the segments are thesame as those described in Note 1, Nature of Operations and Significant Accounting Policies, in CSXs most recent Annual Report on Form 10-K.Business segment information is as follows: Second Quarters CSX (Dollars in millions) Rail (a) Intermodal Consolidated 2009 2008 2009 2008 2009 2008 $ Change Revenues from External Customers $1,894 $2,522 $291 $385 $2,185 $2,907 $(722) Segment Operating Income 546 641 36 76 582 717 (135) Six Months CSX (Dollars in millions) Rail (a) Intermodal Consolidated 2009 2008 2009 2008 2009 2008 $ Change Revenues from External Customers $3,871 $4,887 $561 $733 $4,432 $5,620 $(1,188) Segment Operating Income 1,044 1,206 60 137 1,104 1,343 (239) (a) In addition to CSXT, the Rail segment includes non-railroad subsidiaries such as TDSI, Transflo, CSX Technology and other subsidiaries.

565 - Summarized Consolidating

565 - Summarized Consolidating Financial Data
	6 Months Ended Jun. 26, 2009
Summarized Consolidating Financial Data
Summarized Consolidating Financial Data	NOTE 14.Summarized Consolidating Financial Data In December 2007, CSXT sold secured equipment notes maturing in 2023 and in October 2008, CSXT sold additional secured equipment notes maturing in 2014 in registered public offerings.CSX has fully and unconditionally guaranteed the notes. In connection with the notes, the Company is providing the following condensed consolidating financial information in accordance with SEC disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation and the allocation of certain expenses of CSX incurred for the benefit of its subsidiaries. Condensed consolidating financial information for the obligor, CSXT, and parent guarantor, CSX, is as follows: Consolidating Income Statements (Dollars in Millions) Quarter Ended June 2009 CSX Corporation CSX Transportation Other Eliminations Consolidated Operating Revenue $- $1,879 $332 $(26) $2,185 Operating Expense (63) 1,395 294 (23) 1,603 Operating Income 63 484 38 (3) 582 Equity in Earnings of Subsidiaries 308 - - (308) - Interest Expense (125) (28) (3) 17 (139) Other Income - Net (22) (3) 49 (14) 10 Earnings From Continuing Operations Before Income Taxes 224 453 84 (308) 453 Income Tax Benefit (Expense) 52 (179) (41) - (168) Earnings From Continuing Operations 276 274 43 (308) 285 Discontinued Operations 32 - (9) - 23 Net Earnings $308 $274 $34 $(308) $308 Quarter Ended June 2008 CSX Corporation CSX Transportation Other Eliminations Consolidated Operating Revenue $- $2,501 $439 $(33) $2,907 Operating Expense (33) 1,929 324 (30) 2,190 Operating Income 33 572 115 (3) 717 Equity in Earnings of Subsidiaries 421 - - (421) - Interest Expense (138) (34) (6) 45 (133) Other Income - Net 24 20 15 (42) 17 Earnings From Continuing Operations Before Income Taxes 340 558 124 (421) 601 Income Tax Benefit (Expense) 45 (208) (46) - (209) Earnings From Continuing Operations 385 350 78 (421) 392 Discontinued Operations - - (7) - (7) Net Earnings $385 $350 $71 $(421) $385 NOTE 14.Summarized Consolidating Financial Data, continued Consolidating Income Statements (Dollars in Millions) Six Months Ended June 2009 CSX Corporation CSX Transportation Other Eliminations Consolidated Operating Revenue $- $3,839 $645 $(52) $4,432 Operating Expense (142) 2,958 559 (47) 3,328 Operating Income 142 881 86 (5) 1,104 Equity in Earnings of Subsidiaries 563 - - (563) -

Document Information

Document Information
	6 Months Ended Jun. 26, 2009
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-06-26

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 26, 2009
Entity Information [Line Items]
Entity Registrant Name	CSX CORPORATION
Entity Central Index Key	0000277948
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 Public Float	$372,994,680
Entity Common Stock, Shares Outstanding	392,190,182