Exhibit 99.2
CSX Delivers Record Third Quarter Results
on Improving Business Levels
Year-Over-Year Highlights:
| · | Volume up 10 percent in an improving marketplace |
| · | Operating income increases 39 percent to $825 million |
| · | Operating ratio improves 490 basis points to 69.1 percent |
| · | Earnings Per Share up 48 percent to $1.08 |
Jacksonville, Fla. – October 12, 2010 – CSX Corporation (NYSE: CSX) today announced third quarter earnings of $414 million, or $1.08 per share, versus $290 million, or $0.73 per share, in the same period last year. This represents a 48 percent year-over-year improvement in earnings per share and a third quarter record for the company.
Third quarter revenue increased 16 percent from the prior year to nearly $2.7 billion on a 10 percent overall increase in volume. Revenue growth and continued operating leverage drove a 39 percent increase in operating income to $825 million, and a 490 basis point improvement in the operating ratio to 69.1 percent.
“As the economy continued to improve, CSX saw volume growth in nearly all markets while delivering another strong performance in safety, service and productivity,” said Michael J. Ward, chairman, president and chief executive officer. “These positive financial results are enabling the company to increase investments that create competitive advantages for customers, grow the business, create jobs and deliver shareholder value.”
Accordingly, the company today announced plans to raise its 2010 capital investment to approximately $1.8 billion, up from the previously announced $1.7 billion. In addition, and consistent with its balanced approach to capital deployment, CSX said it expects to repurchase an additional $646 million in shares by the end of the first quarter of 2011, representing the remainder of its existing $3 billion share repurchase program. These actions build on the company’s September 29 announcement to increase its dividend for the eighth time in five years.
| Table of Contents | The accompanying unaudited | CSX CORPORATION | CONTACTS: |
| financial information should be | 500 Water Street, C900 | ||
| read in conjunction with the | Jacksonville, FL | INVESTOR RELATIONS | |
| Company’s most recent | 32202 | David Baggs | |
| Annual Report on Form 10-K, | http://www.csx.com | (904) 359-4812 | |
| Quarterly Reports on Form | MEDIA | ||
| 10-Q, and any Current | Lauren Rueger | ||
| Reports on Form 8-K. | (877) 835-5279 |
1
CSX Corporation, based in Jacksonville, Fla., is a leading transportation company providing rail, intermodal and rail-to-truck transload services. The company’s transportation network spans approximately 21,000 miles with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports.
This earnings announcement, as well as a package of detailed financial information, is contained in the CSX Quarterly Financial Report available on the company’s website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission (“SEC”).
CSX executives will conduct a quarterly earnings conference call with the investment community on October 13, 2010 at 8:30 a.m. Eastern Time. Investors, media and the public may listen to the conference call by dialing 1-888-327-6279 (888-EARN-CSX) and asking for the CSX earnings call. (Callers outside the U.S., dial 1-773-756-0199). Participants should dial in 10 minutes prior to the call. In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company's website at http://investors.csx.com. Following the earnings call, an internet replay of the presentation will be archived on the company website.
Forward-looking Statements
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, volumes, rates, cost-savings, expenses, liquidity, capital expenditures, share repurchases or other financial items; statements of management’s plans, strategies and objectives for future operations, and management’s expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new services; and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “antic ipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company does update any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others; (i) the company’s success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting full year 2010 economic and business conditions.
Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company’s SEC reports, accessible on the SEC’s website at www.sec.gov and the company’s website at www.csx.com.
2
CONSOLIDATED INCOME STATEMENTS (Unaudited) | |||||||||||
| (Dollars in Millions, Except Per Share Amounts) | |||||||||||
| Quarters Ended | Nine Months Ended | ||||||||||
| Sep. 24, | Sep. 25, | Sep. 24, | Sep. 25, | ||||||||
| 2010 | 2009 | $ Change | % Change | 2010 | 2009 | $ Change | % Change | ||||
(Adjusted)(a) | (Adjusted)(a) | ||||||||||
| Revenue | $2,666 | $2,289 | $377 | 16 | % | $7,820 | $6,721 | $1,099 | 16 | % | |
| Expense | |||||||||||
| Labor and Fringe | 731 | 653 | (78) | (12) | 2,181 | 1,969 | (212) | (11) | |||
| Materials, Supplies and Other | 509 | 500 | (9) | (2) | 1,579 | 1,482 | (97) | (7) | |||
| Fuel | 279 | 223 | (56) | (25) | 866 | 599 | (267) | (45) | |||
| Depreciation | 232 | 227 | (5) | (2) | 690 | 677 | (13) | (2) | |||
| Equipment and Other Rents | 90 | 92 | 2 | 2 | 279 | 303 | 24 | 8 | |||
| Total Expense | 1,841 | 1,695 | (146) | (9) | 5,595 | 5,030 | (565) | (11) | |||
| Operating Income | 825 | 594 | 231 | 39 | 2,225 | 1,691 | 534 | 32 | |||
| Interest Expense | (131) | (140) | 9 | 6 | (408) | (420) | 12 | 3 | |||
Other Income - Net (b) | 8 | 6 | 2 | 33 | 28 | 19 | 9 | 47 | |||
| Earnings From Continuing Operations | |||||||||||
| Before Income Taxes | 702 | 460 | 242 | 53 | 1,845 | 1,290 | 555 | 43 | |||
Income Tax Expense (c) | (288) | (170) | (118) | (69) | (712) | (465) | (247) | (53) | |||
| Earnings from Continuing Operations | 414 | 290 | 124 | 43 | 1,133 | 825 | 308 | 37 | |||
Discontinued Operations (d) | - | - | - | - | - | 15 | (15) | 100 | |||
| Net Earnings | $414 | $290 | $124 | 43 | % | $1,133 | $840 | $293 | 35 | % | |
| Operating Ratio | 69.1% | 74.0% | 71.5% | 74.8% | |||||||
| Per Common Share | |||||||||||
| Net Earnings Per Share, Assuming Dilution | |||||||||||
| Continuing Operations | $1.08 | $0.73 | $0.35 | 48 | % | $2.92 | $2.08 | $0.84 | 40 | % | |
Discontinued Operations(d) | - | - | - | - | - | 0.04 | (0.04) | (100) | |||
| Net Earnings | $1.08 | $0.73 | $0.35 | 48 | % | $2.92 | $2.12 | $0.80 | 38 | % | |
| Average Shares Outstanding, | |||||||||||
Assuming Dilution (Thousands)(e) | 381,835 | 396,333 | 387,516 | 395,268 | |||||||
| Cash Dividends Paid Per Common Share | $0.24 | $0.22 | $0.72 | $0.66 | |||||||
See accompanying Notes to Consolidated Financial Statements on Page 6.
3
| CSX Corporation | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Dollars in Millions) | ||
| (Unaudited) | ||
| Sep. 24, | Dec. 25, | |
| 2010 | 2009 | |
(Adjusted)(a) | ||
| ASSETS | ||
| Current Assets | ||
| Cash and Cash Equivalents | $636 | $1,029 |
| Short-term Investments | 40 | 61 |
| Accounts Receivable - Net | 1,001 | 995 |
| Materials and Supplies | 225 | 203 |
| Deferred Income Taxes | 206 | 158 |
| Other Current Assets | 97 | 124 |
| Total Current Assets | 2,205 | 2,570 |
| Properties | 31,457 | 30,907 |
| Accumulated Depreciation | (8,123) | (7,843) |
| Properties - Net | 23,334 | 23,064 |
| Investment in Conrail | 660 | 650 |
| Affiliates and Other Companies | 466 | 438 |
| Other Long-term Assets | 364 | 165 |
| Total Assets | $27,029 | $26,887 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current Liabilities | ||
| Accounts Payable | $981 | $967 |
| Labor and Fringe Benefits Payable | 473 | 383 |
| Casualty, Environmental and Other Reserves | 187 | 190 |
| Current Maturities of Long-term Debt | 605 | 113 |
| Income and Other Taxes Payable | 179 | 112 |
| Other Current Liabilities | 115 | 100 |
| Total Current Liabilities | 2,540 | 1,865 |
| Casualty, Environmental and Other Reserves | 534 | 547 |
| Long-term Debt | 7,297 | 7,895 |
| Deferred Income Taxes | 6,732 | 6,528 |
| Other Long-term Liabilities | 1,288 | 1,284 |
| Total Liabilities | 18,391 | 18,119 |
| Common Stock, $1 Par Value | 374 | 393 |
| Other Capital | - | 80 |
| Retained Earnings | 9,022 | 9,090 |
| Accumulated Other Comprehensive Loss | (771) | (809) |
| Noncontrolling Interest | 13 | 14 |
| Total Shareholders' Equity | 8,638 | 8,768 |
| Total Liabilities and Shareholders' Equity | $27,029 | $26,887 |
See accompanying Notes to Consolidated Financial Statements on Page 6.
4
| CSX Corporation | ||
| CONSOLIDATED CASH FLOW STATEMENTS | ||
| (Dollars in Millions) | ||
| (Unaudited) | ||
| Nine Months Ended | ||
| Sep. 24, | Sep. 25, | |
| 2010 | 2009 | |
(Adjusted)(a) | ||
| OPERATING ACTIVITIES | ||
| Net Earnings | $1,133 | $840 |
| Adjustments to Reconcile Net Earnings to Net Cash Provided | ||
| by Operating Activities: | ||
| Depreciation | 690 | 675 |
| Deferred Income Taxes | 139 | 326 |
| Contributions to Qualified Pension Plans | - | (166) |
| Other Operating Activities | 80 | (150) |
| Changes in Operating Assets and Liabilities: | ||
| Accounts Receivable | (6) | 159 |
| Other Current Assets | (44) | (50) |
| Accounts Payable | 27 | (4) |
| Income and Other Taxes Payable | 150 | 39 |
| Other Current Liabilities | 97 | (80) |
| Net Cash Provided by Operating Activities | 2,266 | 1,589 |
| INVESTING ACTIVITIES | ||
| Property Additions | (1,092) | (1,031) |
| Other Investing Activities | 41 | 51 |
| Net Cash Used in Investing Activities | (1,051) | (980) |
| FINANCING ACTIVITIES | ||
| Long-term Debt Issued | - | 500 |
| Long-term Debt Repaid | (103) | (110) |
| Dividends Paid | (275) | (259) |
| Stock Options Exercised | 21 | 19 |
Shares Repurchased(e) | (1,123) | - |
| Other Financing Activities | (128) | (188) |
| Net Cash Provided by Financing Activities | (1,608) | (38) |
| Net (Decrease) Increase in Cash and Cash Equivalents | (393) | 571 |
| CASH AND CASH EQUIVALENTS | ||
| Cash and Cash Equivalents at Beginning of Period | 1,029 | 669 |
| Cash and Cash Equivalents at End of Period | $636 | $1,240 |
See accompanying Notes to Consolidated Financial Statements on Page 6.
5
CSX Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
| a) | Rail grinding: Certain prior year amounts have been adjusted for the retrospective change in accounting principle for rail grinding. See page 11 for effects of the adjustments. |
| b) | Other Income – Net: Other income – net consisted of the following: |
| Quarters Ended | Nine Months Ended | ||||||
| Sep. 24, | Sep. 25, | Sep. 24, | Sep. 25, | ||||
| (Dollars in Millions) | 2010 | 2009 | $ Change | 2010 | 2009 | $ Change | |
| Interest Income | $1 | $2 | $(1) | $4 | $9 | $(5) | |
| Income from Real Estate Operations | 5 | 11 | (6) | 20 | 18 | 2 | |
| Miscellaneous Income (Expense) | 2 | (7) | 9 | 4 | (8) | 12 | |
| Total Other Income - Net | $8 | $6 | $2 | $28 | $19 | $9 | |
| c) | Income Tax Expense: During the third quarter of 2010, the Company recorded an income tax charge of $22 million or $0.06 per share primarily related to the merger of the Company’s former Intermodal subsidiary with CSX Transportation, Inc. (“CSXT”). |
| d) | Discontinued Operations: In second quarter 2009, CSX sold the stock of a subsidiary that indirectly owned Greenbrier Hotel Corporation, owner of The Greenbrier resort. A gain on this transaction, as well as losses from operations, is shown in this net earnings amount. Because of the sale, these amounts are reported as discontinued operations in the Company’s consolidated income statements and all prior periods have been reclassified. |
| e) | Shares Repurchased: During the third quarter of 2010, CSX repurchased approximately $300 million, or 5.7 million shares, under the Company’s previously announced share repurchase program. During the nine months of 2010, CSX repurchased $1.1 billion, or 21 million shares. |
6
VOLUME AND REVENUE (Unaudited) | ||||||||||||||
| Volume (Thousands of Units); Revenue (Dollars in Millions); Revenue Per Unit (Dollars) | ||||||||||||||
| Quarters Ended September 24, 2010 and September 25, 2009 | ||||||||||||||
| Volume | Revenue | Revenue Per Unit | ||||||||||||
| 2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||
| Chemicals | 116 | 110 | 5 | % | $379 | $332 | 14 | % | $3,267 | $3,018 | 8 | % | ||
| Phosphates and Fertilizers | 78 | 77 | 1 | 107 | 94 | 14 | 1,372 | 1,221 | 12 | |||||
| Automotive | 82 | 57 | 44 | 196 | 127 | 54 | 2,390 | 2,228 | 7 | |||||
| Emerging Markets | 113 | 109 | 4 | 163 | 159 | 3 | 1,442 | 1,459 | (1) | |||||
| Agricultural Products | 104 | 101 | 3 | 246 | 223 | 10 | 2,365 | 2,208 | 7 | |||||
| Forest Products | 67 | 67 | - | 150 | 140 | 7 | 2,239 | 2,090 | 7 | |||||
| Metals | 57 | 55 | 4 | 125 | 111 | 13 | 2,193 | 2,018 | 9 | |||||
| Food and Consumer | 26 | 26 | - | 62 | 57 | 9 | 2,385 | 2,192 | 9 | |||||
| Total Merchandise | 643 | 602 | 7 | 1,428 | 1,243 | 15 | 2,221 | 2,065 | 8 | |||||
| Coal | 392 | 382 | 3 | 835 | 680 | 23 | 2,130 | 1,780 | 20 | |||||
Intermodal(a) | 574 | 481 | 19 | 318 | 299 | 6 | 554 | 622 | (11) | |||||
| Other | - | - | - | 85 | 67 | 27 | - | - | - | |||||
| Total | 1,609 | 1,465 | 10 | % | $2,666 | $2,289 | 16 | % | $1,657 | $1,562 | 6 | % | ||
| Nine Months Ended September 24, 2010 and September 25, 2009 | ||||||||||||||
| Volume | Revenue | Revenue Per Unit | ||||||||||||
| 2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||
| Chemicals | 344 | 320 | 8 | % | $1,102 | $948 | 16 | % | $3,203 | $2,963 | 8 | % | ||
| Phosphates and Fertilizers | 237 | 211 | 12 | 339 | 275 | 23 | 1,430 | 1,303 | 10 | |||||
| Automotive | 244 | 156 | 56 | 570 | 335 | 70 | 2,336 | 2,147 | 9 | |||||
| Emerging Markets | 311 | 306 | 2 | 460 | 440 | 5 | 1,479 | 1,438 | 3 | |||||
| Agricultural Products | 325 | 316 | 3 | 768 | 705 | 9 | 2,363 | 2,231 | 6 | |||||
| Forest Products | 195 | 196 | (1) | 440 | 413 | 7 | 2,256 | 2,107 | 7 | |||||
| Metals | 183 | 148 | 24 | 393 | 295 | 33 | 2,148 | 1,993 | 8 | |||||
| Food and Consumer | 76 | 76 | - | 180 | 176 | 2 | 2,368 | 2,316 | 2 | |||||
| Total Merchandise | 1,915 | 1,729 | 11 | 4,252 | 3,587 | 19 | 2,220 | 2,075 | 7 | |||||
| Coal | 1,166 | 1,188 | (2) | 2,406 | 2,086 | 15 | 2,063 | 1,756 | 17 | |||||
Intermodal(a) | 1,612 | 1,378 | 17 | 941 | 851 | 11 | 584 | 618 | (6) | |||||
| Other | - | - | - | 221 | 197 | 12 | - | - | - | |||||
| Total | 4,693 | 4,295 | 9 | % | $7,820 | $6,721 | 16 | % | $1,666 | $1,565 | 6 | % | ||
(a) The revenue-per-unit decline was primarily driven by the continued impact of terminating the prior interline agreement. See the explanation for intermodal variances for further information.
7
CSX Corporation
VOLUME AND REVENUE
CSX third quarter results reflect continued strong year-over-year volume and revenue growth as a result of the improving marketplace and in comparison to the level of economic activity last year. The greatest volume increases occurred in the automotive and intermodal markets. Ongoing emphasis on pricing above rail inflation and yield management, along with higher fuel recovery associated with the increase in fuel prices drove revenue-per-unit increases in nearly all markets.
Merchandise
Chemicals – Growth occurred across most markets reflecting improvement in demand for intermediate products used in manufacturing automobiles and consumer goods.
Phosphates and Fertilizers – Volume was relatively flat as strength in domestic shipments, due to a strong planting season, was mostly offset by a slight moderation in export volume.
Automotive – Strong growth was due to an increase in North American light vehicle production driven by higher sales.
Emerging Markets – Shipments of aggregates (which include crushed stone, sand and gravel) were flat, however volume growth was primarily driven by new shipments of limestone and cement.
Agricultural Products – Volume grew with increased shipments of feed, wheat and ethanol. Domestic shipments of feed and wheat increased due to reduced imports as a result of a worldwide shortage of wheat. Ethanol shipments grew as the amount of ethanol in fuel continued to increase.
Forest Products – Volume was flat due to continued weakness in construction and paper-related markets.
Metals – Volume growth was driven by increased shipments of sheet steel for auto production and by increases in pipe shipments for energy-related uses.
Food and Consumer – Volume was flat as increased shipments of refrigerated products and alcoholic beverages were offset by weakness in demand for appliances.
Coal
Growth was driven by higher export shipments due to greater demand for U.S. metallurgical coal, partially offset by lower shipments to utility customers as stockpiles continued to moderate to more normal levels. The increase in revenue per unit was driven by improved yield and longer length of haul.
Intermodal
Revenue gains during the quarter were driven by volume growth. International volume increased due to new business, U.S. inventory replenishments, and early holiday shipping. Domestic volume continued to grow with truckload conversions and expanded transcontinental service offerings. The revenue-per-unit decline was driven by the continued impact of terminating the prior interline agreement and was partly offset by increased fuel recovery and an improved pricing environment.
Other
Revenue gains were primarily driven by benefits for contract volume commitments not met as well as increases in intermodal container usage charges.
8
CSX Corporation
EXPENSE
Expenses increased $146 million from last year’s third quarter. Significant variances are described below.
Labor and Fringe expense increased $78 million. This increase was primarily driven by inflation, higher incentive compensation, and hiring and other costs.
Materials, Supplies and Other expense increased $9 million due to several items:
| · | Inland transportation expense reductions of $44 million were related to the continued impact of terminating the prior intermodal interline agreement. |
| · | Higher volume-related expenses were $24 million. |
| · | Prior year expense reductions were $18 million and did not recur in the current quarter. These reductions were primarily related to legal recoveries and lower bad debt expense due to improved collections. |
| · | Various other costs that are not expected to repeat. |
Fuel expense increased $56 million primarily due to higher prices as well as higher volume.
Depreciation expense increased $5 million due to a larger asset base related to higher capital spending, partially offset by lower depreciation rates resulting from the previous periodic review of asset useful lives.
Equipment and Other Rents expense decreased $2 million primarily due to current quarter’s cost savings associated with improved asset utilization and lower lease expense, partially offset by volume-related increases.
| FUEL STATISTICS | |||||||
| Quarters Ended | Nine Months Ended | ||||||
| Sep. 24, | Sep. 25, | Sep. 24, | Sep. 25, | ||||
| 2010 | 2009 | Change | 2010 | 2009 | Change | ||
Estimated Locomotive Fuel Consumption (Millions of gallons) | 117.4 | 107.6 | (9.8) | 357.9 | 333.5 | (24.4) | |
Price Per Gallon (Dollars) | $2.17 | $1.88 | $(0.29) | $2.20 | $1.60 | $(0.60) | |
Total Locomotive Fuel Expense (Dollars in millions) | $255 | $202 | $(53) | $787 | $534 | $(253) | |
Total Non-Locomotive Fuel Expense (Dollars in millions) | 24 | 21 | (3) | 79 | 65 | (14) | |
Total Fuel Expense (Dollars in millions) | $279 | $223 | $(56) | $866 | $599 | $(267) | |
EMPLOYEE COUNTS (Estimated) | |||||
| 2010 | 2009 | Change | |||
| July | 30,273 | 29,962 | 311 | ||
| August | 30,194 | 29,946 | 248 | ||
| September | 30,191 | 29,742 | 449 | ||
| Average | 30,219 | 29,883 | 336 | ||
9
OPERATING STATISTICS (Estimated) | |||||||||
| Quarters Ended | Nine Months Ended | ||||||||
| Sep. 24, | Sep. 25, | Improvement | Sep. 24, | Sep. 25, | Improvement | ||||
Coal (Millions of Tons) | 2010 | 2009 | (Decline) % | 2010 | 2009 | (Decline) % | |||
| Domestic | |||||||||
| Utility | 30.2 | 31.4 | (4) | % | 90.5 | 101.0 | (10) | % | |
| Other | 4.2 | 3.9 | 8 | 10.7 | 9.6 | 11 | |||
| Total Domestic | 34.4 | 35.3 | (3) | 101.2 | 110.6 | (8) | |||
| Export | 6.6 | 5.5 | 20 | 21.9 | 16.4 | 34 | |||
| Coke and Iron Ore | 2.3 | 1.6 | 44 | 6.0 | 4.1 | 46 | |||
| Total Coal | 43.3 | 42.4 | 2 | % | 129.1 | 131.1 | (2) | % | |
Revenue Ton-Miles (Billions)(a) | |||||||||
| Merchandise | 31.5 | 29.6 | 6 | % | 95.2 | 87.3 | 9 | % | |
| Coal | 20.0 | 19.2 | 4 | 59.4 | 58.1 | 2 | |||
| Intermodal | 5.3 | 4.4 | 20 | 14.9 | 12.6 | 18 | |||
| Total | 56.8 | 53.2 | 7 | % | 169.5 | 158.0 | 7 | % | |
Gross Ton-Miles (Billions) | |||||||||
| Total Gross Ton-Miles | 103.3 | 95.9 | 8 | % | 309.4 | 286.1 | 8 | % | |
| (Excludes locomotive gross ton-miles) | |||||||||
| Safety and Service Measurements | |||||||||
| FRA Personal Injury Frequency Index | 1.06 | 1.15 | 8 | % | 1.01 | 1.26 | 20 | % | |
| Number of FRA-reportable injuries per 200,000 man-hours | |||||||||
| FRA Train Accident Rate | 2.25 | 2.59 | 13 | % | 2.77 | 2.96 | 6 | % | |
| Number of FRA-reportable train accidents per million train miles | |||||||||
| On-Time Train Originations | 77% | 82% | (6) | % | 75% | 82% | (9) | % | |
| On-Time Destination Arrivals | 69% | 79% | (13) | % | 69% | 80% | (14) | % | |
Dwell (Hours) | 24.8 | 24.0 | (3) | % | 24.8 | 24.0 | (3) | % | |
| Cars-On-Line | 210,117 | 214,987 | 2 | % | 211,672 | 217,373 | 3 | % | |
Train Velocity (Miles per hour) | 21.1 | 21.8 | (3) | % | 21.0 | 21.7 | (3) | % | |
| Resources | Decrease % | ||||||||
| Route Miles | 21,091 | 21,190 | - | % | |||||
Locomotives (Owned and long-term leased) | 4,068 | 4,092 | (1) | % | |||||
Freight Cars (Owned and long-term leased) | 80,919 | 85,223 | (5) | % | |||||
(a) Prior periods have been reclassified to conform to current presentation.
10
CSX Corporation
Effective in the second quarter of 2010, CSX changed the accounting policy for rail grinding costs from a capitalization method, under which the cost of rail grinding was capitalized and then depreciated, to a direct expense method, under which rail grinding costs are expensed as incurred. This represents a change from an acceptable method under generally accepted accounting principles to a preferable method, and is consistent with recent changes in industry practice. The effects of this change are not material to the financial condition, results of operations, or liquidity for any of the periods presented. All previous periods have been adjusted to reflect this change. For further details, see CSX’s Third Quarter 2010 Quarterly Report on Form 10-Q, which is required to be filed by November 3, 2010.
| Impact of Retrospective Change in Accounting Principle for Rail Grinding (unaudited) | |||||||
| Quarter Ended September 25, 2009 | Nine Months Ended September 25, 2009 | ||||||
| Consolidated Income Statement | As Previously Reported | Impact of Adjustment | As Adjusted | As Previously Reported | Impact of Adjustment | As Adjusted | |
| (Dollars in Millions, Except Per Share Amounts) | |||||||
| Materials, Supplies and Other | $495 | $5 | $500 | $1,467 | $15 | $1,482 | |
| Depreciation | 228 | (1) | 227 | 681 | (4) | 677 | |
| Total Expense | 1,691 | 4 | 1,695 | 5,019 | 11 | 5,030 | |
| Operating Income | 598 | (4) | 594 | 1,702 | (11) | 1,691 | |
| Earnings from Continuing Operations Before Taxes | 464 | (4) | 460 | 1,301 | (11) | 1,290 | |
| Income Tax Expense | (171) | 1 | (170) | (469) | 4 | (465) | |
| Earnings from Continuing Operations | 293 | (3) | 290 | 832 | (7) | 825 | |
| Net Earnings | 293 | (3) | 290 | 847 | (7) | 840 | |
| Net Earnings per Share, Assuming Dilution | |||||||
| Continuing Operations | $0.74 | $(0.01) | $0.73 | $2.10 | $(0.02) | $2.08 | |
| Net Earnings | $0.74 | $(0.01) | $0.73 | $2.14 | $(0.02) | $2.12 | |
| December 25, 2009 | |||||||
| Consolidated Balance Sheet | As Previously Reported | Impact of Adjustment | As Adjusted | ||||
| (Dollars in Millions) | |||||||
| Properties - Net | 23,213 | (149) | 23,064 | ||||
| Deferred Income Taxes | 6,585 | (57) | 6,528 | ||||
| Retained Earnings | 9,182 | (92) | 9,090 | ||||
| Nine Months Ended September 25, 2009 | |||||||
| Consolidated Cash Flow Statement | As Previously Reported | Impact of Adjustment | As Adjusted | ||||
| (Dollars in Millions) | |||||||
| Net Earnings | $847 | $(7) | $840 | ||||
| Depreciation | 679 | (4) | 675 | ||||
| Deferred Income Taxes | 330 | (4) | 326 | ||||
| Net Cash Provided by Operating Activities | 1,604 | (15) | 1,589 | ||||
| Property Additions | (1,046) | 15 | (1,031) | ||||
| Net Cash Used in Investing Activities | (995) | 15 | (980) | ||||
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