CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Unaudited) (USD $) | ||
In Millions, except Share data | 3 Months Ended
Mar. 26, 2010 | 3 Months Ended
Mar. 27, 2009 |
CONSOLIDATED INCOME STATEMENTS | ||
Revenue | $2,491 | $2,247 |
Expense | ||
Labor and Fringe | 729 | 662 |
Materials, Supplies and Other | 453 | 477 |
Fuel | 283 | 191 |
Depreciation | 229 | 224 |
Equipment and Other Rents | 100 | 113 |
Inland Transportation | 63 | 58 |
Total Expense | 1,857 | 1,725 |
Operating Income | 634 | 522 |
Interest Expense | (142) | (141) |
Other Income - Net (Note 8) | 11 | 3 |
Earnings from Continuing Operations Before Income Taxes | 503 | 384 |
Income Tax Expense (Note 9) | (197) | (130) |
Earnings From Continuing Operations | 306 | 254 |
Discontinued Operations (Note 10) | 0 | (8) |
Net Earnings | $306 | $246 |
Net Earnings Per Share, Basic | ||
Net Earnings Per Share, Basic, Continuing Operations | 0.78 | 0.65 |
Net Earnings Per Share, Basic, Discontinued Operations | $0 | -0.02 |
Net Earnings Per Share, Basic, Net Earnings | 0.78 | 0.63 |
Net Earnings Per Share, Assuming Dilution | ||
Net Earnings Per Share, Assuming Dilution, Continuing Operations | 0.78 | 0.64 |
Net Earnings Per Share, Assuming Dilution, Discontinued Operations | $0 | -0.02 |
Net Earnings Per Share, Assuming Dilution, Net Earnings | 0.78 | 0.62 |
Average Shares Outstanding (Thousands) | 391,079 | 391,160 |
Average Shares Outstanding, Assuming Dilution (Thousands) | 394,323 | 394,101 |
Cash Dividends Paid Per Common Share | 0.24 | 0.22 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions | Mar. 26, 2010
| Dec. 25, 2009
|
Current Assets: | ||
Cash and Cash Equivalents | $993 | $1,029 |
Short-term Investments | 57 | 61 |
Accounts Receivable - Net (Note 1) | 971 | 995 |
Materials and Supplies | 218 | 203 |
Deferred Income Taxes | 184 | 158 |
Other Current Assets | 78 | 124 |
Total Current Assets | 2,501 | 2,570 |
Properties | 31,276 | 31,081 |
Accumulated Depreciation | (7,986) | (7,868) |
Properties - Net | 23,290 | 23,213 |
Investment in Conrail | 654 | 650 |
Affiliates and Other Companies | 442 | 438 |
Other Long-term Assets | 306 | 165 |
Total Assets | 27,193 | 27,036 |
Current Liabilities: | ||
Accounts Payable | 931 | 967 |
Labor and Fringe Benefits Payable | 376 | 383 |
Casualty, Environmental and Other Reserves (Note 4) | 185 | 190 |
Current Maturities of Long-term Debt (Note 7) | 617 | 113 |
Income and Other Taxes Payable | 162 | 112 |
Other Current Liabilities | 117 | 100 |
Total Current Liabilities | 2,388 | 1,865 |
Casualty, Environmental and Other Reserves (Note 4) | 553 | 547 |
Long-term Debt (Note 7) | 7,372 | 7,895 |
Deferred Income Taxes | 6,668 | 6,585 |
Other Long-term Liabilities | 1,327 | 1,284 |
Total Liabilities | 18,308 | 18,176 |
Shareholders' Equity: | ||
Common Stock $1 Par Value | 389 | 393 |
Other Capital | 0 | 80 |
Retained Earnings | 9,279 | 9,182 |
Accumulated Other Comprehensive Loss (Note 1) | (798) | (809) |
Noncontrolling Interest | 15 | 14 |
Total Shareholders' Equity | 8,885 | 8,860 |
Total Liabilities and Shareholders' Equity | $27,193 | $27,036 |
PARENTHETICAL DATA TO THE CONSO
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
Mar. 26, 2010
| Mar. 27, 2009
| |
Current Assets: | ||
Common Stock, Par Value | $1 | $1 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) (USD $) | ||
In Millions | 3 Months Ended
Mar. 26, 2010 | 3 Months Ended
Mar. 27, 2009 |
OPERATING ACTIVITIES | ||
Net Earnings | $306 | $246 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||
Depreciation | 229 | 224 |
Deferred Income Taxes | 47 | 79 |
Other Operating Activities | 64 | (65) |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | 24 | 132 |
Other Current Assets | (34) | (76) |
Accounts Payable | (26) | (36) |
Income and Other Taxes Payable | 125 | 31 |
Other Current Liabilities | 12 | (86) |
Net Cash Provided by Operating Activities | 747 | 449 |
INVESTING ACTIVITIES | ||
Property Additions (Note 1) | (331) | (309) |
Other Investing Activities | 18 | 37 |
Net Cash Used in Investing Activities | (313) | (272) |
FINANCING ACTIVITIES | ||
Long-term Debt Issued (Note 7) | 0 | 500 |
Long-term Debt Repaid (Note 7) | (17) | (26) |
Dividends Paid | (93) | (86) |
Stock Options Exercised (Note 3) | 6 | 2 |
Shares Repurchased | (229) | 0 |
Other Financing Activities (Note 1) | (137) | (180) |
Net Cash (Used in) Provided by Financing Activities | (470) | 210 |
Net (Decrease) Increase in Cash and Cash Equivalents | (36) | 387 |
Cash and Cash Equivalents | ||
Cash and Cash Equivalents at Start of Period | 1,029 | 669 |
Cash and Cash Equivalents at End of Period | $993 | $1,056 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1.Nature of Operations and Significant Accounting Policies Background 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. 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 Ontario and Quebec. CSX Intermodal, Inc. (Intermodal) is a stand-alone, integrated intermodal transportation provider 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 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. CSXs other holdings include CSX Real Property, Inc., a subsidiary responsible for the Companys real estate sales, leasing, acquisition and management and development activities. These activities are classified in other income net because they are not considered by the Company to be operating activities.Results of these activities fluctuate with the timing of real estate sales. 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 ended March 26, 2010 and March 27, 2009; Consolidated balance sheets at March 26, 2010 and December 25, 2009; and Consolidated cash flow statements for the quarters ended March 26, 2010 and March 27, 2009. 6 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1.Nature of Operations and Significant Accounting Policies, continued 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 U.S. generally accepted accounting principles have been omitted from these interim financial statements.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 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 period ending on a Friday: The first fiscal quarter of 2010 and 2009 consisted of 13 weeks endi |
Earnings Per Share
Earnings Per Share | |
3 Months Ended
Mar. 26, 2010 | |
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: First Quarters 2010 2009 Numerator (Dollars in millions): Earnings from Continuing Operations $306 $254 Discontinued Operations - Net of Tax(a) - (8) Net Earnings 306 246 Denominator (Units in thousands): Average Common Shares Outstanding 391,079 391,160 Convertible Debt 1,042 1,118 Stock Option Common Stock Equivalents (b) 2,131 1,823 Other Potentially Dilutive Common Shares 71 - Average Common Shares Outstanding, Assuming Dilution 394,323 394,101 Net Earnings Per Share, Basic: Continuing Operations $0.78 $0.65 Discontinued Operations (a) - (0.02) Net Earnings $0.78 $0.63 Net Earnings Per Share, Assuming Dilution: Continuing Operations $0.78 $0.64 Discontinued Operations (a) - (0.02) Net Earnings $0.78 $0.62 (a) For additional information regarding discontinued operations, see Note 10, Discontinued Operations. (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 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. 9 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 the number of shares that would be issued if all of CSXs outstanding convertible debentures were converted into CSX common stock. As a result, diluted shares outstanding are not impacted when debentures are converted into CSX common stock because those shares were already included in the diluted shares calculation.Shares outstanding for basic earnings per share, however, are impacted on a weighted-average basis when conversions occur. During first quarter 2010, $3 million o |
Share-Based Compensation
Share-Based Compensation | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [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: First Quarters (Dollars in millions) 2010 2009 Share-Based Compensation Expense (a) $23 $(8) Income Tax Benefit / (Expense) 9 (3) (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. 10 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 3.Share-Based Compensation, continued The following table provides information about stock options exercised. First Quarters (In thousands) 2010 2009 Number of Stock Options Exercised 359 74 As of December 2009, all outstanding options are vested and therefore, there will be no future expense related to these options. As of March 2010, CSX had approximately 5 million stock options outstanding. However, the impact of options to diluted earnings per share is much smaller (see footnote b to the table in Note 2, Earnings Per Share for more information). |
Casualty, Environmental and Oth
Casualty, Environmental and Other Reserves | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
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: March 2010 December 25, 2009 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $78 $220 $298 $85 $215 $300 Occupational 28 132 160 27 132 159 Total Casualty 106 352 458 112 347 459 Separation 15 54 69 16 57 73 Environmental 37 60 97 37 60 97 Other 27 87 114 25 83 108 Total $185 $553 $738 $190 $547 $737 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 condition, results of operations or liquidity in that particular period. 11 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 4.Casualty, Environmental and Other Reserves, continued 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 of $25 million per injury.In accordance with the Contingencies Topic in the ASC, to the extent the value of an individual claim exceeds the self-insured retention amount, the Company would present the liability on a gross basis with a corresponding receivable for insurance recoveries.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 relate to CSXT unless otherwise noted below.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. 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).In addition to FELA liabilities, employees of other CSX subsidiaries or former subsidiaries are covered by various state workers compensation laws, the Federal Longshore and Harbor Workers Compensation Program or the Maritime Jones Act. CSXT retains an independent actuarial firm to assist management in assessing the value of personal injury claims and cases. |
Commitments and Contingencies
Commitments and Contingencies | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Commitments and Contingencies | NOTE 5.Commitments and Contingencies Insurance The Company maintains numerous insurance programs with substantial limits for third-party casualty liability and Company property damage and business interruption.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. While the Companys current insurance coverage is adequate to cover its damages, future claims could exceed existing insurance coverage or insurance may not continue to be available at commercially reasonable rates. 14 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 5.Commitments and Contingencies, continued 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 to 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. At March 2010, 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 subsidiary 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 for 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 guarantee will be completed in 2011. As of March 2010, the Company had not recognized any liabilities in its financial statements in connection with any guarantee arrangements.The maximum amount of future payments the Company could be required to make under these guarantees is the sum of the guaranteed amounts. For information related to CSXs guarantee of CSXTs secured equipment notes, see Note 13, Summarized Consolidating Financial Data. Legal Proceedings There were no material developments during the quarter concerning the fuel surcharge antitrust litigation or the Seminole Electric Cooperative, Inc. rate case.For further details, see Note 7, Commitments and Contingencies, in CSXs most recent |
Employee Benefit Plans
Employee Benefit Plans | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
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, the Company 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 (partially funded by retirees), with retiree contributions adjusted annually.The life insurance plan is non-contributory. The Company engages independent, external actuaries to compute the amounts of liabilities and expenses relating to these plans subject to the assumptions that the Company selects.The following table describes the components of expense/(income) related to net periodic benefit cost: Pension Benefits Other Post-retirement Benefits (Dollars in millions) First Quarters First Quarters 2010 2009 2010 2009 Service Cost $10 $8 $1 $1 Interest Cost 31 32 5 6 Expected Return on Plan Assets (41) (37) - - Amortization of Prior Service Cost 1 1 - - Amortization of Net Loss 15 7 2 1 Net Periodic Benefit Cost $16 $11 $8 $8 16 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 6.Employee Benefit Plans, continued Qualified pension plan obligations are funded in accordance with prescribed regulatory requirements and with an objective of meeting minimum funding requirements necessary to avoid restrictions on flexibility of plan operation and benefit payments.The Company made pension plan contributions of $250 million to its qualified defined benefit pension plans in 2009.At the current time, the Company anticipates that no contributions to its qualified pension plans will be required in 2010.For further details, see Note 8, Employee Benefit Plans, in CSXs most recent Annual Report on Form 10-K. |
Debt and Credit Agreements
Debt and Credit Agreements | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Debt and Credit Agreements | NOTE 7.Debt and Credit Agreements Total activity related to long-term debt as of March 2010 was as follows: (Dollars in millions) Current Portion Long-term Portion Total Long-term Debt Activity Total long-term debt at December 2009 $113 $7,895 $8,008 2010 activity: Issued - - - Repaid (17) - (17) Reclassifications 523 (523) - Converted into CSX stock (2) - (2) Total long-term debt at March 2010 $617 $7,372 $7,989 Debt Exchange On March 24, 2010, CSX exchanged $660 million of notes (the Existing Notes), bearing interest at an average rate of 7.74% with maturities ranging from 2017 to 2038.These Existing Notes were exchanged for $660 million of debt securities (the New Notes) bearing interest at 6.22% and due April 30, 2040.In addition, CSX paid approximately $141 million to the debtholders as cash consideration.CSX also paid the debtholders any accrued and unpaid interest on the Existing Notes.In accordance with the Debt Topic in the ASC, this transaction has been accounted for as a debt exchange.As such, the $141 million of cash consideration paid to the debtholders is included in other long-term assets.This cash consideration and the unamortized discount and issue costs from the Existing Notes will be amortized as an adjustment of interest expense over the term of the New Notes.There were no gain or loss recognized as a result of this exchange.However, all costs related to the debt exchange and due to parties other than the debtholders, were included in interest expense during the quarter.These costs totaled approximately $3 million. Pursuant to a registration rights agreement entered into in connection with the exchange offer, CSX has agreed to offer to exchange the New Notes for notes registered under the Securities Act of 1933, as amended.If CSX fails to satisfy this obligation under the registration rights agreement within the specified time periods, it will be required to pay additional interest to holders of the New Notes. 17 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 7.Debt and Credit Agreements, continued For fair value information related to the Companys long-term debt, see Note 11, 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 uponCSXs senior unsecured debt ratings.The facility requires CSX to maintaina ratio of total debt to total capitalization below a prescribed limit. The facilitydoes not require CSX to post collateral under any circumstances. As of March 2010, this facility was not drawn on, and CSX was in compliance with all covenant requirements under the facility.Thisfacility expires in2012. Receivables Securitization Facility In 2009, the Company entered into a $250 million receivables securitization facility.The purpose of this facility is to provide an alternative to commercial paper and a lo |
Other Income - Net
Other Income - Net | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
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.Miscellaneous income (expense) includes equity earnings or losses, investment gains and losses and other non-operating activities.Other income net consisted of the following: First Quarters (Dollars in Millions) 2010 2009 Interest Income $1 $4 Income from Real Estate 7 1 Miscellaneous Income (Expense) 3 (2) Total Other Income - Net $11 $3 |
Income Taxes
Income Taxes | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Income Taxes | NOTE 9.Income Taxes During the first quarter of 2010, the Patient Protection and Affordable Care Act was enacted and signed into law.This Act included a provision eliminating the tax deductibility of retiree health care costs to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D coverage.As a result of this legislation and the Health Care and Education Reconciliation Act of 2010, the Company recorded tax expense of $7 million. During the first quarter of 2009, as a result of the expiration of statutes of limitations and the resolution of other income tax matters the Company recorded an income tax benefit of $13 million. There have been no material changes to the balance of unrecognized tax benefits as reported at December 2009. |
Discontinued Operations
Discontinued Operations | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Discontinued Operations | NOTE 10.Discontinued Operations The Greenbrier In the second quarter of 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. Previously, all amounts associated with the operations of The Greenbrier were included in Other Income Net.All prior periods have been reclassified to reflect discontinued operations.In first quarter 2009, The Greenbrier had revenue of $7 million and pre-tax losses of $12 million.There was no activity in 2010. |
Fair Value Measurements
Fair Value Measurements | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Fair Value Measurements | NOTE 11.Fair Value Measurements 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 and long-term debt.In addition, disclosure of the fair value of pension plan assets is only required annually. 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. 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.Level 2 inputs were used to determine fair value of the Companys investment assets.The fair value and amortized cost of these bondsare as follows: (Dollars in Millions) March 2010 December 2009 Fair Value $91 $96 Amortized Cost $88 $91 20 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 11.Fair Value Measurements, continued 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.All inputs used to determine the fair value of the Companys long-term debt qualify as level 2 inputs. 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, the value of similar financial instruments, size of the transaction, cash flow projections, and comparable trades.Fair value will exceed carrying value when the c |
Business Segments
Business Segments | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Business Segments | NOTE 12.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, in CSXs most recent Annual Report on Form 10-K.Business segment information is as follows: First Quarters CSX (Dollars in millions) Rail (a) Intermodal Consolidated 2010 2009 2010 2009 2010 2009 $ Change Revenues from External Customers $2,168 $1,977 $323 $270 $2,491 $2,247 $244 Segment Operating Income 595 498 39 24 634 522 112 (a) In addition to CSXT, the rail segment includes non-railroad subsidiaries TDSI, Transflo, CSX Technology and other subsidiaries. Intermodal entered into a new jointly-marketed domestic interline container program called UMAX with Union Pacific Corporation. This agreement which became effective beginning in the second quarter is expected to result in revenue loss to Intermodal of $40 million to $50 million on a quarterly basis with a similar reduction expected in inland transportation expense.The impact on operating income is expected to be neutral in the near-term and positive long-term.Additionally, financial consideration was provided that will be amortized over the term of the agreement, which is not material to any period. |
Summarized Consolidating Financ
Summarized Consolidating Financial Data | |
3 Months Ended
Mar. 26, 2010 | |
Notes to Financial Statements [Abstract] | |
Schedule of Condensed Financial Statements [Text Block] | NOTE 13.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: 23 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 13.Summarized Consolidating Financial Data, continued Consolidating Income Statements (Dollars in Millions) Quarter Ended March 2010 CSX Corporation CSX Transportation Other Eliminations Consolidated Operating Revenue $- $2,152 $365 $(26) $2,491 Operating Expense (37) 1,605 315 (26) 1,857 Operating Income $37 $547 $50 $- $634 Equity in Earnings of Subsidiaries 398 - (36) (362) - Interest Expense (126) (28) (6) 18 (142) Other Income - Net 6 18 5 (18) 11 Earnings From Continuing Operations Before Income Taxes $315 $537 $13 $(362) $503 Income Tax Benefit (Expense) (9) (210) 22 - (197) Earnings From Continuing Operations $306 $327 $35 $(362) $306 Discontinued Operations - - - - - Net Earnings $306 $327 $35 $(362) $306 Quarter Ended March 2009 CSX Corporation CSX Transportation Other Eliminations Consolidated Operating Revenue $- $1,960 $313 $(26) $2,247 Operating Expense (79) 1,563 265 (24) 1,725 Operating Income $79 $397 $48 $(2) $522 Equity in Earnings of Subsidiaries 549 - (294) (255) - Interest Expense (124) (31) (1) 15 (141) Other Income - Net 8 6 2 (13) 3 Earnings From Continuing Operations Before Income Taxes $512 $372 $(245) $(255) $384 Income Tax Benefit (Expense) (266) (140) 276 - (130) Earnings From Continuing Operations $246 $232 $31 $(255) $254 Discontinued Operations - - (8) - (8) Net Earnings $246 $232 $23 $(255) $246 24 Table of Contents CSX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 13.Su |
Document Information
Document Information | |
3 Months Ended
Mar. 26, 2010 | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2010-03-26 |
Entity Information
Entity Information (USD $) | ||
3 Months Ended
Mar. 26, 2010 | Jun. 26, 2009
| |
Entity [Text Block] | ||
Entity Registrant Name | CSX Corporation | |
Entity Central Index Key | 0000277948 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $13,500,000,000 | |
Entity Common Stock Shares Outstanding | 389,225,965 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q1 |