CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (USD $) | |||
In Millions, except Share data | 12 Months Ended
Dec. 25, 2009 | 12 Months Ended
Dec. 26, 2008 | 12 Months Ended
Dec. 28, 2007 |
CONSOLIDATED INCOME STATEMENTS | |||
Revenue | $9,041 | $11,255 | $10,030 |
Expense | |||
Labor and Fringe | 2,629 | 2,955 | 2,986 |
Materials, Supplies and Other | 1,715 | 2,133 | 1,898 |
Fuel | 849 | 1,817 | 1,312 |
Depreciation | 908 | 904 | 883 |
Equipment and Other Rents | 391 | 425 | 451 |
Inland Transportation | 264 | 253 | 240 |
Total Expense | 6,756 | 8,487 | 7,770 |
Operating Income | 2,285 | 2,768 | 2,260 |
Interest Expense | (558) | (519) | (417) |
Other Income - Net (Note 10) | 34 | 100 | 105 |
Earnings from Continuing Operations Before Income Taxes | 1,761 | 2,349 | 1,948 |
Income Tax Expense (Note 12) | (624) | (854) | (712) |
Earnings From Continuing Operations | 1,137 | 1,495 | 1,236 |
Discontinued Operations (Note 14) | 15 | (130) | 100 |
Net Earnings | $1,152 | $1,365 | $1,336 |
Net Earnings Per Share, Basic | |||
Continuing Operations | 2.9 | 3.73 | 2.88 |
Discontinued Operations | 0.04 | -0.32 | 0.23 |
Net Earnings | 2.94 | 3.41 | 3.11 |
Net Earnings Per Share, Assuming Dilution | |||
Continuing Operations | 2.87 | 3.66 | 2.77 |
Discontinued Operations | 0.04 | -0.32 | 0.22 |
Net Earnings | 2.91 | 3.34 | 2.99 |
Average Common Shares Outstanding (Thousands) | 392,127 | 400,740 | 430,433 |
Average Common Shares Outstanding, Assuming Dilution (Thousands) | 395,686 | 408,620 | 448,341 |
Cash Dividends Paid Per Common Share | 0.88 | 0.77 | 0.54 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions | Dec. 25, 2009
| Dec. 26, 2008
|
Current Assets | ||
Cash and Cash Equivalents (Note 1) | $1,029 | $669 |
Short-term Investments | 61 | 76 |
Accounts Receivable - Net (Note 1) | 995 | 1,107 |
Materials and Supplies | 203 | 217 |
Deferred Income Taxes | 158 | 203 |
Other Current Assets | 124 | 119 |
Total Current Assets | 2,570 | 2,391 |
Properties | 31,081 | 30,208 |
Accumulated Depreciation | (7,868) | (7,520) |
Properties - Net (Note 6) | 23,213 | 22,688 |
Investment in Conrail (Note 13) | 650 | 609 |
Affiliates and Other Companies | 438 | 406 |
Other Long-term Assets (Note 11) | 165 | 194 |
Total Assets | 27,036 | 26,288 |
Current Liabilities | ||
Accounts Payable | 967 | 973 |
Labor and Fringe Benefits Payable | 383 | 465 |
Casualty, Environmental and Other Reserves (Note 5) | 190 | 236 |
Current Maturities of Long-term Debt (Note 9) | 113 | 319 |
Income and Other Taxes Payable | 112 | 125 |
Other Current Liabilities | 100 | 286 |
Total Current Liabilities | 1,865 | 2,404 |
Casualty, Environmental and Other Reserves (Note 5) | 547 | 643 |
Long-term Debt (Note 9) | 7,895 | 7,512 |
Deferred Income Taxes (Note 12) | 6,585 | 6,235 |
Other Long-term Liabilities (Note 11) | 1,284 | 1,426 |
Total Liabilities | 18,176 | 18,220 |
Common Stock, $1 Par Value (Note 3) | 393 | 391 |
Other Capital | 80 | 0 |
Retained Earnings (Note 1) | 9,182 | 8,398 |
Accumulated Other Comprehensive Loss (Note 1) | (809) | (741) |
Noncontrolling Minority Interest | 14 | 20 |
Total Shareholders' Equity | 8,860 | 8,068 |
Total Liabilities and Shareholders' Equity | $27,036 | $26,288 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS (USD $) | |||
In Millions | 12 Months Ended
Dec. 25, 2009 | 12 Months Ended
Dec. 26, 2008 | 12 Months Ended
Dec. 28, 2007 |
OPERATING ACTIVITIES | |||
Net Earnings | $1,152 | $1,365 | $1,336 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | |||
Depreciation | 908 | 918 | 890 |
Deferred Income Taxes | 436 | 435 | 272 |
Non-cash Discontinued Operations (Note 14) | 0 | 166 | (110) |
Contributions to Qualified Pension Plans (Note 8) | (250) | (102) | (266) |
Other Operating Activities | (182) | 65 | (91) |
Changes in Operating Assets and Liabilities: | |||
Accounts Receivable | 92 | 74 | (50) |
Other Current Assets | 28 | 37 | (41) |
Accounts Payable | (4) | (3) | 48 |
Income and Other Taxes Payable | (9) | (46) | 234 |
Other Current Liabilities | (111) | 5 | (38) |
Net Cash Provided by Operating Activities | 2,060 | 2,914 | 2,184 |
INVESTING ACTIVITIES | |||
Property Additions | (1,447) | (1,740) | (1,773) |
Purchases of Short-term Investments | 0 | (25) | (2,338) |
Proceeds from Sales of Short-term Investments | 0 | 280 | 2,459 |
Other Investing Activities | 54 | 36 | (41) |
Net Cash Used in Investing Activities | (1,393) | (1,449) | (1,693) |
FINANCING ACTIVITIES | |||
Long-term Debt Issued (Note 9) | 500 | 1,351 | 2,381 |
Long-term Debt Repaid (Note 9) | (323) | (642) | (785) |
Dividends Paid | (345) | (308) | (231) |
Stock Options Exercised (Note 4) | 34 | 83 | 153 |
Shares Repurchased (Note 1) | 0 | (1,570) | (2,174) |
Other Financing Activities | (173) | (78) | 72 |
Net Cash Used in Financing Activities | (307) | (1,164) | (584) |
Net Increase (Decrease) in Cash and Cash Equivalents | 360 | 301 | (93) |
Cash and Cash Equivalents | |||
Cash and Cash Equivalents at Beginning of Period | 669 | 368 | 461 |
Cash and Cash Equivalents at End of Period | 1,029 | 669 | 368 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Interest Paid - Net of Amounts Capitalized | 560 | 509 | 411 |
Income Taxes Paid | 201 | 276 | 235 |
Seller Financed Assets | $160 | $310 | $52 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | |||||||||||||||||||
In Millions, except Share data | Common Stock [Member]
| Other Capital [Member]
| Retained Earnings [Member]
| Pension and OPEB Adjustments [Member]
| Other [Member]
| Noncontrolling Interest [Member]
| Total
| ||||||||||||
Balance (in shares) at Dec. 29, 2006 | 437,764 | ||||||||||||||||||
Balance at Dec. 29, 2006 | $438 | $1,469 | $7,427 | ($392) | [1] | $0 | $89 | [2] | $9,031 | ||||||||||
Comprehensive Earnings: | |||||||||||||||||||
Net Earnings | 0 | 0 | 1,336 | 0 | 0 | 0 | 1,336 | ||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 63 | [1] | 4 | 0 | 67 | |||||||||||
Adjustment for Initial Adoption of Income Taxes Topic in the ASC | 0 | 0 | 33 | [3] | 0 | 0 | 0 | 33 | [3] | ||||||||||
Income and expense recognized directly in equity | 0 | 0 | 0 | 0 | 0 | (68) | [2] | (68) | |||||||||||
Dividends | 0 | 0 | (231) | 0 | 0 | 0 | (231) | ||||||||||||
Share Repurchases | (51) | (2,123) | 0 | 0 | 0 | 0 | (2,174) | ||||||||||||
Share Repurchases (in shares) | (50,917) | ||||||||||||||||||
Bond Conversions | 13 | [4] | 339 | [4] | 0 | 0 | 0 | 0 | 352 | [4] | |||||||||
Bond Conversions (in shares) | 13,296 | [4] | |||||||||||||||||
Susidiary Equity Restructuring | 0 | 72 | 0 | 0 | 0 | 0 | 72 | ||||||||||||
Stock Options Exercises and Other | 8 | 280 | 0 | 0 | 0 | 0 | 288 | ||||||||||||
Stock Options Exercises and Other (in shares) | 7,721 | ||||||||||||||||||
Balance at Dec. 28, 2007 | 408 | 37 | 8,565 | (329) | [1] | 4 | 21 | [2] | 8,706 | ||||||||||
Balance (in shares) at Dec. 28, 2007 | 407,864 | ||||||||||||||||||
Comprehensive Earnings: | |||||||||||||||||||
Net Earnings | 0 | 0 | 1,365 | 0 | 0 | 0 | 1,365 | ||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | (411) | [1] | (5) | 0 | (416) | |||||||||||
Dividends | 0 | 0 | (308) | 0 | 0 | (1) | [2] | (309) | |||||||||||
Share Repurchases | (28) | (1,542) | 0 | 0 | 0 | 0 | (1,570) | ||||||||||||
Share Repurchases (in shares) | (28,486) | ||||||||||||||||||
Other Capital Reclass | 0 | 1,211 | (1,211) | 0 | 0 | 0 | 0 | ||||||||||||
Bond Conversions | 5 | [4] | 116 | [4] | 0 | 0 | 0 | 0 | 121 | [4] | |||||||||
Bond Conversions (in shares) | 5,042 | [4] | |||||||||||||||||
Adjustment for Compensation - Retirement Benefits Topic in the ASC | 0 | 0 | (13) | 0 | 0 | 0 | (13) | ||||||||||||
Stock Options Exercises and Other | 6 | 178 | 0 | 0 | 0 | 0 | 184 | ||||||||||||
Stock Options Exercises and Other (in shares) | 6,106 | ||||||||||||||||||
Balance at Dec. 26, 2008 | 391 | 0 | 8,398 | (740) | [1] | (1) | 20 | [2] | 8,068 | ||||||||||
Balance (in shares) at Dec. 26, 2008 | 390,526 | ||||||||||||||||||
Comprehensive Earnings: | |||||||||||||||||||
Net Earnings | 0 | 0 | 1,152 | 0 | 0 | 0 | 1,152 | ||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | (74) | [1] | 6 | 0 | (68) | |||||||||||
Income and expense recognized directly in equity | 0 | 0 | 0 | 0 | 0 | (5) | [2] | (5) | |||||||||||
Dividends | 0 | 0 | (345) | 0 | 0 | (1) | [2] | (346) | |||||||||||
Other Capital Reclass | 0 | 23 | (23) | 0 | 0 | 0 | 0 | ||||||||||||
Bond Conversions | 0 | 1 | [4] | 0 | 0 | 0 | 0 | 1 | [4] | ||||||||||
Bond Conversions (in shares) | 22 | [4] | |||||||||||||||||
Stock Options Exercises and Other | 2 | 56 | 0 | 0 | 0 | 0 | 58 | ||||||||||||
Stock Options Exercises and Other (in shares) | 2,912 | ||||||||||||||||||
Balance at Dec. 25, 2009 | $393 | $80 | $9,182 | ($814) | [1] | $5 | $14 | [2] | $8,860 | ||||||||||
Balance (in shares) at Dec. 25, 2009 | 393,460 | ||||||||||||||||||
[1](a) Pension and other postretirement benefits balances are net of taxes of $166 million, $375 million and $426 million for 2007, 2008, and 2009, respectively. | |||||||||||||||||||
[2](b) Noncontrolling interest - Prior year amounts have been reclassified to reflect noncontrolling interest expense as a component of Stockhoders' Equity. See New Accounting Pronouncements in Note 1, Nature of Operations and Significant Accounting Policies for further information. | |||||||||||||||||||
[3](c) Adjustment for initial adoption of Income Taxes Topic in ASC - see Note 12, Income Taxes | |||||||||||||||||||
[4](d) Bond Conversions - see Note 2, Earnings Per Share and Note 9, Debt and Credit Agreements |
PARENTHETICAL DATA TO THE CONSO
PARENTHETICAL DATA TO THE CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | |||
In Millions | 12 Months Ended
Dec. 25, 2009 | 12 Months Ended
Dec. 26, 2008 | 12 Months Ended
Dec. 28, 2007 |
Statement of Stockholders' Equity [Abstract] | |||
Pension and other postretirement benefits, tax effect | $426 | $375 | $166 |
NOTE 1. Nature of Operations an
NOTE 1. Nature of Operations and Significant Accounting Policies | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Nature of Operations and Significant Accounting Policies | NOTE 1.Nature of Operations and Significant Accounting Policies Nature of Operations CSX Corporation (CSX), and 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 containers and trailers. Rail CSX Transportation, Inc. CSXs principal operating company, 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 Ontario and Quebec. It serves over 70 ocean, river and lake ports along the Atlantic and Gulf Coasts, the Mississippi River, the Great Lakes and the St. Lawrence Seaway.CSXT also serves thousands of production and distribution facilities through track connections to more than 240 short-line and regional railroads. 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 centers and storage locations, while Transflo provides logistical solutions for transferring products from rail to trucks. CSX Technology and other subsidiaries provide support services for the Company. Intermodal CSX Intermodal, Inc. (Intermodal) is a stand-alone, integrated intermodal transportation provider linking customers to railroads via trucks and terminals.Containers and trailers are loaded and unloaded from trains, and trucks provide the link between intermodal terminals and the customer. Lines of Business Together, the rail and intermodal segments generated $9 billion of revenue during 2009 and served four primary lines of business: 71 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 1.Nature of Operations and Significant Accounting Policies, continued The merchandise business is the most diverse market with nearly 2.1 million carloads per year of aggregates, which includes crushed stone, sand and gravel, metal, phosphate, fertilizer, food, consumer (manufactured goods and appliances), agricultural, paper and chemical products.The merchandise business generated approximately 48% of the Companys revenue in 2009 and 36% of volume. Coal, which delivered approximately 1.6 million carloads of coal, coke and iron ore to electricity generating power plants, ocean, river and lake piers and terminals, steel makers and industrial plants, accounted for approximately 30% of the Companys revenue in 2009 and 27% of volume.CSXT transports almost one-third of every ton of coal used for generating electricity in the areas it serves. Automotive, which delivers finished vehicles and auto parts, generated approximately 6% of the Companys revenue and 4% of the Companys volume in 2009. |
NOTE 2. Earnings Per Share
NOTE 2. Earnings Per Share | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [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: Fiscal Years 2009 2008 2007 Numerator (Dollars in Millions): Earnings from Continuing Operations $1,137 $1,495 $1,236 Interest Expense on Convertible Debt - Net of Tax - 1 2 Net Earnings from Continuing Operations, If-Converted 1,137 1,496 1,238 Discontinued Operations - Net of Tax (a) 15 (130) 100 Net Earnings, If-Converted 1,152 1,366 1,338 Interest Expense on Convertible Debt - Net of Tax - (1) (2) Net Earnings $1,152 $1,365 $1,336 Denominator (Units in Thousands): Average Common Shares Outstanding 392,127 400,740 430,433 Convertible Debt 1,114 2,989 11,469 Stock Options Common Stock Equivalents (b) 2,144 3,751 5,010 Other Potentially Dilutive Common Shares 301 1,140 1,429 Average Common Shares Outstanding, Assuming Dilution 395,686 408,620 448,341 Net Earnings Per Share, Basic: Continuing Operations $2.90 $3.73 $2.88 Discontinued Operations (a) 0.04 (0.32) 0.23 Net Earnings $2.94 $3.41 $3.11 Net Earnings Per Share, Assuming Dilution: Continuing Operations $2.87 $3.66 $2.77 Discontinued Operations (a) 0.04 (0.32) 0.22 Net Earnings $2.91 $3.34 $2.99 (a) See Note 14, Discontinued Operationsfor additional information. (b) When calculating diluted earnings per share for stock option common stock equivalents, the Earnings Per Share Topic in the ASC 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 to obtain the common stock equivalent.This number is different from outstanding stock options, which is included in Note 4, Stock Plans and 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. 78 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 2.Earnings Per Share, continued 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 issued as 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. The Earnings Per Share Topic in the ASC requires CSX to include additional shares in the computation of earnings per share, assuming dilution.The additional shares included in diluted earnings per share represents t |
NOTE 3. Shareholders' Equity
NOTE 3. Shareholders' Equity | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Shareholders' Equity | NOTE 3. Shareholders Equity Common and preferred stock consists of the following: December 25, Common Stock, $1 Par Value 2009 (Units in Thousands) Common Shares Authorized 600,000 Common Shares Issued and Outstanding 393,460 Preferred Stock Preferred Shares Authorized 25,000 Preferred Shares Issued and Outstanding - Holders of common stock are entitled to one vote on all matters requiring a vote for each share held.Preferred stock is senior to common stock with respect to dividends and upon liquidation of CSX. |
NOTE 4. Stock Plans and Share-B
NOTE 4. Stock Plans and Share-Based Compensation | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Share-Based Compensation | NOTE 4. Stock Plans and 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. As of December 2009, there were 731 current or former employees with stock options outstanding under the various plans.Most stock option awards were granted under the authorization provided in the CSX Omnibus Incentive Plan. As of December 2009, an additional 11 million shares of stock could be issued under this plan. The Compensation-Stock Compensation Topic in the ASC requires the cash flows resulting from income tax deductions in excess of compensation costs to be classified as financing cash flows.This requirement resulted in reduced net operating cash flows and increased net financing cash flows of approximately $12 million, $69 million and $61 million for fiscal years 2009, 2008 and 2007, respectively. The Compensation-Stock Compensation Topic also requires the disclosure of total compensation costs for share-based payment arrangements and the related tax benefits recognized in income. Total pre-tax expense associated with share-based compensation and its related income tax benefit is as follows: Fiscal Years (Dollars in Millions) 2009 2008 2007 Share-Based Compensation Expense $17 $38 $73 Income Tax Benefit 6 14 27 Stock Options Stock options were granted with 10-year terms.Options outstanding as of December 2009 are generally exercisable three to ten years after date of grant.The exercise price for options granted equals the market price of the underlying stock on the grant date.A summary of CSX's stock option activity and related information for the fiscal years 2009, 2008 and 2007 is as follows: 80 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 4. Stock Plans and Share-Based Compensation, continued Fiscal Years 2009 2008 2007 Weighted- Weighted- Weighted- Options Average Options Average Options Average Outstanding Exercise Outstanding Exercise Outstanding Exercise (000s) Price (000s) Price (000s) Price Outstanding at Beginning of Year 7,309 $17.93 11,771 $18.25 19,420 $18.96 Expired or Cancelled (94) $22.26 (21) $19.03 (44) $18.05 Exercised (1,820) $18.70 (4,441) $18.76 (7,605) $20.08 Outstanding at End of Year 5,395 $17.60 7,309 $17.93 11,771 $18.25 Exerc |
NOTE 5. Casualty, Environmental
NOTE 5. Casualty, Environmental and Other Reserves | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Casualty, Environmental and Other Reserves | NOTE 5.Casualty, Environmental and Other Reserves Activity related to casualty, environmental and other reserves is as follows: Casualty Separation Environmental Other (Dollars in Millions) Reserves Liabilities Reserves Reserves Total Balance December 29, 2006 $637 $120 $71 $93 $921 Charged to Expense(a) 141 - 76 79 296 Change in Estimate (99) - - - (99) Payments(a) (133) (17) (47) (50) (247) Balance December 28, 2007 $546 $103 $100 $122 $871 Charged to Expense 115 - 38 57 210 Payments (95) (16) (38) (53) (202) Balance December 26, 2008 $566 $87 $100 $126 $879 Charged to Expense(b) 111 - 26 26 163 Change in Estimate(c) (127) - - - (127) Payments (91) (14) (29) (44) (178) Balance December 25, 2009 $459 $73 $97 $108 $737 (a) Charges to expense and payments for environmental reserves were higher in 2007 primarily due to clean-up costs associated with an increase in significant train accidents. (b) Charges to expense for other reserves were lower in 2009 primarily due to a reduction in freight loss and damage claims as a result of volume declines. (c) Personal injury accounted for $84 million of the total $127 million change in estimate.The remaining $43 million is attributable to occupational reserves. 85 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 5.Casualty, Environmental and Other Reserves, continued 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: December 25, 2009 December 26, 2008 (Dollars in Millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $85 $215 $300 $104 $258 $362 Occupational 27 132 159 32 172 204 Total Casualty 112 347 459 136 430 566 Separation 16 57 73 16 71 87 Environmental 37 60 97 42 58 100 Other 25 83 108 42 84 126 Total $190 $547 $737 $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 available, the liabilities that have been 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.Should a number of these items occur in the same period, however, they could have a material effect on the financial condi |
NOTE 6. Properties
NOTE 6. Properties | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Properties | NOTE 6.Properties Railroad Assets The Company depreciates its rail assets, including main-line track, locomotives and freight cars, using the group-life method of accounting.Assets depreciated under the group-life method comprise over 90% of total fixed assets of $31 billion on a gross basis at December 2009.All other assets of the Company are depreciated on a straight line basis. The group-life method aggregates assets with similar lives and characteristics into groups and depreciates each of these groups as a whole.When using the group-life method, an underlying assumption is that each group of assets, as a whole, is used and depreciated to the end of its recoverable life. The Company currently utilizes more than 250 different depreciable asset categories to account for depreciation expense for the railroad assets that are depreciated under group life. Examples of depreciable asset categories include 18 different categories for crossties due to the different combinations of density classifications and asset types. By utilizing various depreciable categories, the Company can more accurately account for the use of its assets. The Company believes the group-life method of depreciation closely approximates the straight-line method of depreciation.Additionally, due to the nature of most of its assets (e.g. track is one contiguous, connected asset) the Company believes that this is the most effective way to properly depreciate its assets. Under group-life, the service lives and salvage values for each group of assets are determined by completing periodic life studies and applying management's assumptions regarding the service lives of its properties.A life study is the periodic review of asset lives for group assets conducted by a third-party expert, analyzed by the Companys management and approved by the Surface Transportation Board (STB), the regulatory board that has broad jurisdiction over railroad practices.The STB requires life studies be performed for equipment assets every three years and for road (e.g. bridges and signals) and track (e.g., rail, ties and ballast) assets every six years.The Company believes the frequency currently required by the STB provides adequate review of asset lives and that a more frequent review would not result in a material change due to the long-lived nature of most of the assets. 94 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 6.Properties, continued The results of the life study process determine the service lives for each asset group under the group-life method.Road assets, including main-line track, have estimated service lives ranging from 6 years for system roadway machinery to 75 years for tunnels.Equipment assets, including locomotives and freight cars, have estimated service lives ranging from 6 years for technology assets to 35 years for work equipment.Resulting changes in service life estimates are subject to review and approval by the STB. Changes in asset lives due to the results of the life studies are applied on a prospective basis and could significantly impact future periods depreciation expense, and thu |
NOTE 7. Commitments and Conting
NOTE 7. Commitments and Contingencies | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Commitments and Contingencies | NOTE 7.Commitments and Contingencies Lease Commitments The Company has various lease agreements with other parties with terms up to 30 years. Non-cancelable, long-term leases generally include provisions for maintenance, options to purchase and options to extend the terms.The Company uses the straight-line method to recognize rent expense associated with operating leases that include escalations over their terms. Fiscal Years (Dollars in Millions) 2009 2008 2007 Net Daily Rental Charges (a) $307 $323 $310 Rent Expense on Operating Leases 84 102 141 Equipment and Other Rents $391 $425 $451 (a)Net daily rental charges are not long-term commitments. At December 2009, minimum building and equipment rentals and commitments for vessels (utilized in a shipping business formerly owned by CSX) under these operating leases were as follows: (Dollars in Millions) Operating Sublease Net Lease Years Leases Income Commitments 2010 $110 $(31) $79 2011 85 (17) 68 2012 82 (21) 61 2013 64 (26) 38 2014 72 (49) 23 Thereafter 143 - 143 Total $556 $(144) $412 Operating leases and an equal portion of sublease income include approximately $120 million relating to ongoing operating lease commitments for vessels and equipment, which have been subleased to Horizon Lines, Inc. (Horizon), a former subsidiary previously named CSX Lines.CSX believes Horizon will fulfill its contractual commitments with respect to such leases and CSX will have no further liability for those obligations.The Company also has agreements covering equipment leased from Conrail, Inc. (Conrail), which are included in the table above. 99 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 7.Commitments and Contingencies, continued Purchase Commitments CSXT has a commitment under a long-term maintenance program that currently covers 47% of CSXTs fleet of locomotives. The agreement is based on the maintenance cycle for each locomotive.Under CSXTs current obligations, the agreement will expire no earlier than 2028 and may last until 2031 depending upon when certain locomotives are placed in service. The costs expected to be incurred throughout the duration of the agreement fluctuate as locomotives are placed into, or removed from, service or as required maintenance schedules are revised. The decrease in costs shown below is a direct result of retiring and storing locomotives in 2009. The following table summarizes the number of locomotives covered and CSXTs payments under the long-term maintenance program: Fiscal Years (Dollars in Millions) 2009 2008 2007 Amounts Paid $237 $253 $217 Number of Locomotives 1,891 1,958 1,843 As a result of agreements executed in 2005 and 2006, CSXT has remaining purchase obligations to acquire 50 additional locomotives by year-end 2011. The amount of the ultimate purchase commitment depends upon the model of |
NOTE 9. Debt and Credit Agreeme
NOTE 9. Debt and Credit Agreements | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Debt and Credit Agreements | NOTE 9.Debt and Credit Agreements Debt was as follows: Average Interest Rates at December December December Maturity 2009 2009 2008 (Dollars in Millions) Notes 2010-2043 6.7% $7,038 $6,756 Convertible Debentures, net of $3 discount 2021 2.1% 28 28 Equipment Obligations 2010-2023 7.0% 911 1,002 Capital Leases 2010-2015 6.4% 31 45 Total Long-term Debt (including current portion) 8,008 7,831 Less Debt Due within One Year (113) (319) Long-term Debt (excluding current portion) $7,895 $7,512 For information regarding the fair value of debt, see Note 15, Fair Value Measurements. 112 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 9.Debt and Credit Agreements, continued Debt Issuance In 2009, CSX issued $500 million of 7.375% notes due 2019.These notes were included in the consolidated balance sheets under long-term debt and may be redeemed by the Company at any time.The net proceeds from the sale of the notes will be used for general corporate purposes, which may include repurchases of CSX common stock, capital expenditures, working capital requirements, improvements in productivity and other cost reductions at the Company's major transportation units. Convertible Debentures In 2001, CSX issued $564 million aggregate principal amount at maturity in unsubordinated zero coupon convertible debentures (the "debentures") due in 2021 for an initial offering price of approximately $462 million.The carrying value of outstanding debentures was $28 million, both at December 2009 and December 2008.From their date of issuance, these debentures had accreted (increased) in value at a rate of 1% per year.In 2007, the accretion rate was reset to 2.1%.The accretion rate may be reset again in October 2011 and October 2016 to a rate based on five-year United States Treasury Notes minus 2.8%.In no event will the yield to maturity be reset below 1% or above 3% per annum.Accretion in value on the debentures is recorded in each month but will not be paid prior to maturity. The debentures allow holders to require CSX to purchase their debentures in October 2011 and October 2016, at a purchase price equal to the accreted value of the debentures at the time.CSX may redeem the debentures for cash at any time at a redemption price equal to the accreted value of the debentures. Holders currently may convert their debentures into shares of CSX common stock at a conversion rate of 35.49 common shares per $1,000 principal amount at maturity of debentures.During 2008, $142 million face value of debentures was converted into 5 million shares of CSX common stock.There were no material conversions during 2009.At December 2009, $31 million face value debentures remained outstanding, convertible into approximately 1 million shares of CSX common stock. 113 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 9.Deb |
NOTE 10. Other Income - Net
NOTE 10. Other Income - Net | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Other Income - Net | NOTE 10.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.Miscellaneous income (expense) includes equity earnings or losses, investment gains and losses and other non-operating activities.Other income net consisted of the following: Fiscal Years (Dollars in Millions) 2009 2008 2007 Interest Income $11 $37 $55 Income from Real Estate 31 39 58 Miscellaneous Income (Expense)(a) (8) 24 (8) Total Other Income - Net $34 $100 $105 Gross Revenue from Real Estate Operations included above $60 $77 $95 (a) In 2008, CSX recorded additional income of $30 million for an adjustment to correct equity earnings from a non-consolidated subsidiary.For the year 2007, CSX recorded expense of $10 million related to an early redemption premium and the write-off of debt issuance costs. Previously, the results of operations from The Greenbrier resort were included in other income net.In 2009, CSX sold the stock of a subsidiary that indirectly owned Greenbrier Hotel Corporation, owner of The Greenbrier resort.The results of this resort are now presented in discontinued operations on the consolidated income statements and all prior periods have been reclassified.For more information, see Note 14, Discontinued Operations. |
NOTE 11. Other Long-term Assets
NOTE 11. Other Long-term Assets and Other Long-term Liabilities | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Other Long-term Assets and Other Long-term Liabilities | NOTE 11.Other Long-term Assets and Other Long-term Liabilities Other Long-term Assets Other Long-term Assets consisted of the following: December 2009 2008 (Dollars in Millions) Goodwill(a) $64 $64 Available for Sale Securities(b) 35 48 Debt Issuance Costs 35 36 Other Long-term Assets 31 46 Total Other Long-term Assets $165 $194 (a) Goodwill related to subsidiaries of CSXT, primarily Four Rivers Transportation, represents purchase price in excess of fair value. (b) Available for Sale Securities include investments in marketable securities. Other Long-term Liabilities Other Long-term Liabilities consisted of the following: December 2009 2008 (Dollars in Millions) Pension Plan Liability (a) $603 $730 Post-retirement Benefit Liability (a) 364 331 Deferred Gains 143 160 Accrued Deferred Compensation 79 77 Accrued Sick Leave 17 24 Deferred Lease Payments 18 21 Income Taxes Payable - 9 Other Long-term Liabilities 60 74 Total Other Long-term Liabilities $1,284 $1,426 (a)See Note 8, Employee Benefit Plans, for explanation on changes in pension and post-retirement benefit liabilities. |
NOTE 12. Income Taxes
NOTE 12. Income Taxes | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Income Taxes | NOTE 12.Income Taxes Earnings from continuing operations before income taxes of $1.8 billion, $2.3 billion and $1.9 billion for fiscal years 2009, 2008, and 2007, respectively, represent earnings from domestic operations. The significant components of deferred tax assets and liabilities include: 2009 2008 (Dollars in Millions) Assets Liabilities Assets Liabilities Pension Plans $223 $- $282 $- Other Employee Benefit Plans 303 - 317 - Accelerated Depreciation - 7,184 - 6,882 Other 365 135 469 218 Total $891 $7,319 $1,068 $7,100 Net Deferred Tax Liabilities $6,428 $6,032 The primary factors in the change in year-end net deferred income tax liability balances include: Annual provision for deferred income tax expense; Deferred income taxes attributable to discontinued operations; and Accumulated other comprehensive loss and other capital adjustments; The breakdown of income tax expense between current and deferred is as follows: (Dollars in Millions) Fiscal Years Current: 2009(a) 2008(b) 2007 Federal $151 $284 $398 State 37 73 46 Total Current 188 357 444 Deferred: Federal 413 477 233 State 23 20 35 Total Deferred 436 497 268 Total $624 $854 $712 (a) The decrease in current tax expense during 2009 is primarily due to the decrease to pre-tax earnings. (b) The increase in deferred tax expense during 2008 is primarily due to the bonus depreciation provision of the Economic Stimulus Act of 2008 which had an impact of approximately $200 million.Likewise, 2009 deferred tax expense was impacted by approximately $160 million related to bonus depreciation. 117 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 12.Income Taxes, continued Income tax expense reconciled to the tax computed at statutory rates is presented in the table below.The change in the 2008 effective income tax rate compared to the prior year is primarily attributed to prior year audit resolutions.The change in the 2009 effective income tax rate compared to the prior year is primarily attributed to a state tax benefit recorded for the change in the apportionment of state taxes. Fiscal Years (Dollars In Millions) 2009 2008 2007 Federal Income Taxes $616 35 % $822 35 % $682 35 % State Income Taxes 37 2 59 3 50 3 Prior Year Audit Resolutions (15) (1) (18) (1) 5 - Other Items(a) (14) (1) (9) (1) (25) (1) Income Tax Expense/Rate $624 35 % $854 36 % $712 37 % (a) Other items primarily include tax impacts from equity in Conrail and other partially owned subsidiaries earnings. CSX adopted the Income Taxes Topic in the ASC, at the beginning of fiscal year 2007.As a result of the imp |
NOTE 13. Related Party Transact
NOTE 13. Related Party Transactions | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Related Party Transactions | NOTE 13.Related Party Transactions Through a limited liability company, CSX and Norfolk Southern Corporation (NS) jointly own Conrail. CSX has a 42% economic interest and 50% voting interest in the jointly owned entity and NS has the remainder of the economic and voting interests.Pursuant to the Investments-Equity Method and Joint Venture Topic in the ASC, CSX applies the equity method of accounting to its investment in Conrail. 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, switching and terminal service charges in the shared asset area.These expenses are included in materials, supplies and other on the consolidated income statements. Also included in materials, supplies and other are CSXs 42% share of Conrails income and its amortization of the fair value write-up arising from the acquisition of Conrail and certain other adjustments.The 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. The following table details the related Conrail amounts included in materials, supplies and other in the Companys consolidated income statements: Fiscal Years (Dollars in Millions) 2009 2008 2007 Rents, Fees and Services $104 $112 $97 Purchase Price Amortization and Other 4 4 4 Equity in Income of Conrail (27) (23) (35) Total Conrail Rents, Fees and Services $81 $93 $66 Interest expense from the promissory notes payable to a Conrail subsidiary was as follows: Fiscal Years (Dollars in Millions) 2009 2008 2007 Interest Expense Related to Conrail $4 $4 $4 As required by the Related Party Disclosures Topic in the ASC, the Company has identified amounts below owed to Conrail, or its subsidiaries, representing liabilities under the operating, equipment and shared area agreements with Conrail.The Company also executed two promissory notes with a subsidiary of Conrail which were included in long-term debt on the consolidated balance sheets. 120 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 13.Related Party Transactions, continued December 25, December 26, (Dollars in Millions) 2009 2008 Balance Sheet Information: CSX Payable to Conrail (a) $65 $63 Promissory Notes Payable to Conrail Subsidiary 4.40% CSX Promissory Note due October 2035 (b) $73 $73 4.52% CSXT Promissory Note due March 2035 (b) $23 $23 (a) Included on the consolidated balance sheet of CSX as accounts payable because it is short term in nature. (b) Included on the consolidated balance sheet of CSX as long-term debt. |
NOTE 14. Discontinued Operation
NOTE 14. Discontinued Operations | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Discontinued Operations | NOTE 14. Discontinued Operations The Greenbrier In 2009, CSX sold the stock of a subsidiary that indirectly owned Greenbrier Hotel Corporation (GHC or The Greenbrier) to Justice Family Group, LLC (JFG) for approximately $21 million in cash.CSX recognized a gain on the sale of $25 million which included a tax benefit of $3 million in the second quarter of 2009.The gain was calculated using cash proceeds, net book value, deal-related costs incurred and tax benefits. CSX has retained responsibility for certain pre-closing Greenbrier pension obligations.Additionally in 2009, The Greenbrier recognized a pre-tax operating loss of $17 million or $10 million after tax. In 2008, prior to JFG purchasing The Greenbrier, CSX identified impairment indicators, including a significant decrease in the market value associated with The Greenbrier, which caused the Company to review the carrying amount of the assets of the resort.Based on level 3 inputs within the fair value hierarchy, this review resulted in a write-down of the assets.The 2008 impairment and operating loss had a pre-tax impact of $203 million or $130 million after tax. The 2008 impairment and operating loss and the 2009 transaction are reported as discontinued operations under the subsection Impairment or Disposal of Long-Lived Assets in the ASC.Therefore, the gain on sale as well as losses from operations is reported as discontinued operations.Previously, all amounts associated with the operations of The Greenbrier were included in Other Income - Net.All prior periods have been reclassified to reflect this change. International Terminals Discontinued operations for 2007 included an income tax benefit related to the 2005 sale of CSXs International Terminals business.The Company recorded a tax benefit of $110 million which was primarily associated with the 2007 resolution of income tax matters related to former activities of the marine service businesses, including the International Terminals business.This 2007 tax benefit was recorded in discontinued operations as the Company no longer operates in these businesses.This tax benefit was associated with tax basis adjustments, foreign dividends and foreign tax credits from operations over a multi-year period. 121 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 14. Discontinued Operations, continued Income statement information: Fiscal Years (Dollars in Millions) 2009 2008 2007 Net Loss From Operations, After Tax $(10) $(130) $(10) Gain on Sale, After Tax 25 - - Income Tax Benefit - - 110 Net Income (Loss) From Discontinued Operations $15 $(130) $100 Earnings Per Share From Discontinued Operations, Assuming Dilution $0.04 $(0.32) $0.22 |
NOTE 15. Fair Value Measurement
NOTE 15. Fair Value Measurements | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Fair Value Measurements | NOTE 15.Fair Value Measurements Beginning in 2009, the Financial Instruments Topic in the ASC requiresdisclosures about fair value of financial instruments in annual reports as well as in quarterly reports.For CSX, this statement applies to certain investments, pension plan assets and long-term debt.Also, the Fair Value Measurements and Disclosures Topic in theASCclarifies 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, pension plan assets and long-term debt.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 valuation methods described below may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 122 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 15. Fair Value Measurements, continued 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 per the Fair Value Measurements and Disclosures Topic in theASC.As of December 2009, these bonds had a fair value of $96 million and an amortized cost basis of $91 million.Level 2 inputs were used to determine fair value of the Companys investment assets. Long-term Debt Long-term debt is reported at carrying amount on the consolidated balance sheet and is the Companys only financial instrument with fair values significantly different from their carrying amounts. The majority of the Companys long-term debt is valued by an independent third party.For those instruments not valued by the third party, the fair value has been estimated using discounted cash flow analysis based upon the yields provided by the same independent third party.Level 2 inputs were used to determine the fair value of the Companys long-term debt. The fair value of outstanding debt fluctuates with changes in a number of factors.Such factors include, but are not limited to, interest rates, market conditions, values of similar financial instruments, size of the transaction, cash flow projecti |
NOTE 16. Derivative Financial I
NOTE 16. Derivative Financial Instruments | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Derivative Financial Instruments | NOTE 16.Derivative Financial Instruments Interest Rate Swaps CSX uses derivative financial instruments to manage its overall exposure to fluctuations in interest rates.During 2007, CSX repaid $450 million of debentures that matured and called $150 million of debentures due in 2032.As a result, CSX also settled the interest rate swaps related to those debentures.CSX had $20 million and $30 million of additional outstanding interest rate swaps as of December 2009 and 2008, respectively.The impact of the interest rate swaps on interest expense was $1 million in each of those years.The interest rate swap agreements were designated and qualified as fair value hedges.CSXs interest rate swaps qualified as perfectly effective, as defined by the Derivatives and Hedging Topic in the ASC.As such, there was no ineffective portion to the hedge recognized in earnings during the current or prior year periods. |
NOTE 17. Business Segments
NOTE 17. Business Segments | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Business Segments | NOTE 17.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 segment provides 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 the same as those described in Note 1, Nature of Operations and Significant Accounting Policies and Note 6, Properties. 125 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 17.Business Segments, continued Certain segment information has been reclassified to conform to current year presentation.Business segment information was as follows: Fiscal Years (Dollars in Millions) 2009 2008 2007 Revenue from External Customers: Rail $7,837 $9,789 $8,674 Intermodal 1,204 1,466 1,356 Consolidated $9,041 $11,255 $10,030 Operating Income: Rail $2,123 $2,478 $2,000 Intermodal 162 290 260 Consolidated $2,285 $2,768 $2,260 Assets: Rail $26,107 $25,343 $24,502 Intermodal 359 321 283 Investment in Conrail 650 609 639 Elimination of Intersegment Payables (Receivables) (a) (511) (8) (121) Non-segment Assets (a) 431 23 231 Consolidated $27,036 $26,288 $25,534 Depreciation Expense: Rail $883 $879 $849 Intermodal 25 25 34 Consolidated $908 $904 $883 Property Additions: Rail $1,403 $1,672 $1,678 Intermodal 44 62 60 Non-Segment - 6 35 Consolidated $1,447 $1,740 $1,773 (a) The increase from 2008 is a result of the transfer of intercompany receivables to CSX Trade Receivables. For more information on the receivables securitization facility, see Note 9, Debt and Credit Agreements. |
NOTE 18. Quarterly Financial Da
NOTE 18. Quarterly Financial Data (Unaudited) | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Quarterly Financial Data (Unaudited) | NOTE 18.Quarterly Financial Data (Unaudited) Pursuant to Article 3 of theSECs Regulation S-X, the following are selected quarterly financial data: 2009 Quarters 1st 2nd 3rd 4th Full Year (Dollars in Millions, Except Per Share Amounts) Operating Revenue $2,247 $2,185 $2,289 $2,320 $9,041 Operating Income 522 582 598 583 2,285 Earnings from Continuing Operations 254 285 293 305 1,137 Discontinued Operations (a) (8) 23 - - 15 Net Earnings $246 $308 $293 $305 $1,152 Earnings Per Share, Basic: Continuing Operations $0.65 $0.73 $0.75 $0.77 $2.90 Discontinued Operations (a) (0.02) 0.06 - - 0.04 Net Earnings $0.63 $0.79 $0.75 $0.77 $2.94 Earnings Per Share, Assuming Dilution: Continuing Operations $0.64 $0.72 $0.74 $0.77 $2.87 Discontinued Operations (a) (0.02) 0.06 - - 0.04 Net Earnings $0.62 $0.78 $0.74 $0.77 $2.91 Dividend Per Share $0.22 $0.22 $0.22 $0.22 $0.88 2008 Quarters 1st 2nd 3rd 4th Full Year (Dollars in Millions, Except Per Share Amounts) Operating Revenue $2,713 $2,907 $2,961 $2,674 $11,255 Operating Income 626 717 733 692 2,768 Earnings from Continuing Operations (b) 362 392 380 361 1,495 Discontinued Operations (a) (11) (7) 2 (114) (130) Net Earnings $351 $385 $382 $247 $1,365 Earnings Per Share, Basic: Continuing Operations $0.90 $0.97 $0.94 $0.92 $3.73 Discontinued Operations (a) (0.03) (0.02) 0.01 (0.29) (0.32) Net Earnings $0.87 $0.95 $0.95 $0.63 $3.41 Earnings Per Share, Assuming Dilution: Continuing Operations $0.88 $0.95 $0.93 $0.92 $3.66 Discontinued Operations (a) (0.03) (0.02) 0.01 (0.29) (0.32) Net Earnings $0.85 $0.93 $0.94 $0.63 $3.34 Dividend Per Share $0.15 $0.18 $0.22 $0.22 $0.77 Prior periods have been reclassified to conform to the current presentation. (a) Discontinued Operations - Included in fourth quarter 2008, discontinued operations amount is an impairment loss of $107 million after-tax on CSXs former investment in The Greenbrier resort. (b) Earnings from Continuing Operations - In first quarter 2008, CSX recorded a non-cash adjustment of $30 million to correct equity earningsfrom a non-consolidated subsidiary resulting in additional income. |
NOTE 19. Summarized Consolidati
NOTE 19. Summarized Consolidating Financial Data | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Schedule of Condensed Financial Statements [Text Block] | NOTE 19.Summarized Consolidating Financial Data In 2007, CSXT sold secured equipment notes maturing in 2023 and in 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: 128 Table of Contents CSX CORPORATION PART II Item 8.Financial Statements and Supplementary Data NOTE 19.Summarized Consolidating Financial Data, continued Consolidating Income Statements (Dollars in Millions) Fiscal Year Ended December 25, 2009 CSX Corporation CSX Transportation Other Eliminations Consolidated Operating Revenue $- $7,776 $1,362 $(97) $9,041 Operating Expense (279) 5,968 1,164 (97) 6,756 Operating Income 279 1,808 198 - 2,285 Equity in Earnings of Subsidiaries 1,569 - - (1,569) - Interest Expense (500) (116) (11) 69 (558) Other Income - Net 63 28 12 (69) 34 Earnings from Continuing Operations Before Income Taxes 1,411 1,720 199 (1,569) 1,761 Income Tax Benefit (Expense) (291) (630) 297 - (624) Earnings from Continuing Operations 1,120 1,090 496 (1,569) 1,137 Discontinued Operations 32 - (17) - 15 Net Earnings $1,152 $1,090 $479 $(1,569) $1,152 Fiscal Year Ended December 26, 2008 CSX Corporation CSX Transportation Other Eliminations Consolidated Operating Revenue $- $9,712 $1,675 $(132) $11,255 Operating Expense (193) 7,511 1,289 (120) 8,487 Operating Income 193 2,201 386 (12) 2,768 Equity in Earnings of Subsidiaries 1,500 - - (1,500) - Interest Expense (544) (155) (22) 202 (519) Other Income - Net 110 118 62 (190) 100 Earnings from Continuing Operations Before Income Taxes 1,259 2,164 426 (1,500) 2,349 Income Tax Benefit (Expense) 106 (733) (227) - (854) Earnings from Continuing Operations 1,36 |
Document Information
Document Information | |
12 Months Ended
Dec. 25, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2010-02-18 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 25, 2009 | Feb. 05, 2010
| Jun. 26, 2009
| |
Entity [Text Block] | |||
Entity Registrant Name | CSX CORP | ||
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 | $13,502,407,416 | ||
Entity Common Stock Shares Outstanding | 390,035,435 |