Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | CSX CORP |
Entity Central Index Key | 0000277948 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 809,163,666 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2019 |
Entity Emerging Growth Company | false |
Entity Small Business | false |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement | ||
Revenue | $ 3,013 | $ 2,876 |
Expense | ||
Labor and Fringe | 672 | 696 |
Materials, Supplies and Other | 478 | 482 |
Depreciation | 330 | 323 |
Fuel | 233 | 255 |
Equipment and Other Rents | 100 | 101 |
Equity Earnings of Affiliates | (19) | (25) |
Total Expense | 1,794 | 1,832 |
Operating Income | 1,219 | 1,044 |
Interest Expense | (178) | (149) |
Other Income - Net | 23 | 17 |
Earnings Before Income Taxes | 1,064 | 912 |
Income Tax Expense | (230) | (217) |
Net Earnings | $ 834 | $ 695 |
Per Common Share | ||
Net Earnings Per Share, Basic (in dollars per share) | $ 1.02 | $ 0.78 |
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 1.02 | $ 0.78 |
Average Shares Outstanding (in shares) | 814 | 885 |
Average Shares Outstanding, Assuming Dilution (in shares) | 817 | 888 |
CONSOLIDATED COMPREHENSIVE INCO
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Total Comprehensive Earnings (Note 12) | $ 836 | $ 596 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,188 | $ 858 | $ 1,980 | $ 401 |
Short-term Investments | 822 | 253 | ||
Accounts Receivable - Net (Note 9) | 1,106 | 1,010 | ||
Materials and Supplies | 241 | 263 | ||
Other Current Assets | 122 | 181 | ||
Total Current Assets | 3,479 | 2,565 | ||
Properties | 44,826 | 44,805 | ||
Accumulated Depreciation | (12,838) | (12,807) | ||
Properties - Net | 31,988 | 31,998 | ||
Right-of-Use Lease Asset (Note 5) | 550 | 0 | ||
Other Long-term Assets | 344 | 387 | ||
Total Assets | 38,154 | 36,729 | ||
Current Liabilities: | ||||
Accounts Payable | 1,019 | 949 | ||
Labor and Fringe Benefits Payable | 406 | 550 | ||
Casualty, Environmental and Other Reserves (Note 4) | 112 | 113 | ||
Current Maturities of Long-term Debt (Note 8) | 18 | 18 | ||
Income and Other Taxes Payable | 193 | 106 | ||
Other Current Liabilities | 178 | 179 | ||
Total Current Liabilities | 1,926 | 1,915 | ||
Casualty, Environmental and Other Reserves (Note 4) | 207 | 211 | ||
Long-term Debt (Note 8) | 15,748 | 14,739 | ||
Deferred Income Taxes - Net | 6,743 | 6,690 | ||
Long-term Lease Liability (Note 5) | 502 | 0 | ||
Other Long-term Liabilities | 583 | 594 | ||
Total Liabilities | 25,709 | 24,149 | ||
Shareholders' Equity: | ||||
Common Stock, $1 Par Value | 809 | 818 | ||
Other Capital | 267 | 249 | ||
Retained Earnings | 12,011 | 12,157 | ||
Accumulated Other Comprehensive Loss (Note 12) | (659) | (661) | ||
Noncontrolling Interest | 17 | 17 | ||
Total Shareholders' Equity | 12,445 | 12,580 | $ 14,391 | $ 14,721 |
Total Liabilities and Shareholders' Equity | 38,154 | 36,729 | ||
Investments in Conrail | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 948 | 943 | ||
Affiliates and Other Companies | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | $ 845 | $ 836 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net Earnings | $ 834 | $ 695 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||
Depreciation | 330 | 323 |
Deferred Income Taxes | 51 | 54 |
Gain on Property Dispositions | (27) | (32) |
Equity Earnings of Affiliates | (19) | (25) |
Cash Payments for Restructuring Charge | 0 | (12) |
Other Operating Activities | (14) | 6 |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | (56) | (50) |
Other Current Assets | 22 | (19) |
Accounts Payable | 74 | 64 |
Income and Other Taxes Payable | 150 | 127 |
Other Current Liabilities | (172) | (165) |
Net Cash Provided by Operating Activities | 1,173 | 966 |
INVESTING ACTIVITIES | ||
Property Additions | (353) | (368) |
Proceeds from Property Dispositions | 48 | 52 |
Purchase of Short-term Investments | (813) | 0 |
Proceeds from Sales of Short-term Investments | 250 | 8 |
Other Investing Activities | (2) | (8) |
Net Cash Used In Investing Activities | (870) | (316) |
FINANCING ACTIVITIES | ||
Long-term Debt Issued (Note 8) | 1,000 | 2,000 |
Dividends Paid | (195) | (194) |
Shares Repurchased | (796) | (836) |
Other Financing Activities | 18 | (41) |
Net Cash Provided by Financing Activities | 27 | 929 |
Net Increase in Cash and Cash Equivalents | 330 | 1,579 |
CASH AND CASH EQUIVALENTS | ||
Cash and Cash Equivalents at Beginning of Period | 858 | 401 |
Cash and Cash Equivalents at End of Period | $ 1,188 | $ 1,980 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Shares Outstanding | Common Stock and Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | |
Common Shares Outstanding, beginning balance (in shares) at Dec. 31, 2017 | 889,851 | ||||||
Shareholders' Equity, beginning balance at Dec. 31, 2017 | $ 14,721 | $ 1,107 | $ 14,084 | $ (486) | [1] | $ 16 | |
Comprehensive Earnings: | |||||||
Net Earnings | 695 | 695 | |||||
Other Comprehensive Income (Note 12) | (99) | (99) | [1] | ||||
Total Comprehensive Earnings | 596 | ||||||
Common stock dividends ($0.24 per share and $0.22 per share) | $ (194) | (194) | |||||
Share Repurchases (in shares) | (15,000) | (14,966) | |||||
Share Repurchases | $ (836) | (15) | (821) | ||||
Stock Option Exercises and Other (in shares) | 469 | ||||||
Stock Option Exercises and Other | 104 | (2) | 109 | (3) | |||
Common Shares Outstanding, ending balance (in shares) at Mar. 31, 2018 | 875,354 | ||||||
Shareholders' Equity, ending balance at Mar. 31, 2018 | 14,391 | 1,090 | 13,873 | (585) | [1] | 13 | |
AOCI Tax, Attributable to Parent | 160 | ||||||
Common Shares Outstanding, beginning balance (in shares) at Dec. 31, 2018 | 818,180 | ||||||
Shareholders' Equity, beginning balance at Dec. 31, 2018 | 12,580 | 1,067 | 12,157 | (661) | [1] | 17 | |
Comprehensive Earnings: | |||||||
Net Earnings | 834 | 834 | |||||
Other Comprehensive Income (Note 12) | 2 | 2 | [1] | ||||
Total Comprehensive Earnings | 836 | ||||||
Common stock dividends ($0.24 per share and $0.22 per share) | $ (195) | (195) | |||||
Share Repurchases (in shares) | (12,000) | (11,540) | |||||
Share Repurchases | $ (796) | (12) | (784) | ||||
Stock Option Exercises and Other (in shares) | 2,524 | ||||||
Stock Option Exercises and Other | 20 | 21 | (1) | ||||
Common Shares Outstanding, ending balance (in shares) at Mar. 31, 2019 | 809,164 | ||||||
Shareholders' Equity, ending balance at Mar. 31, 2019 | $ 12,445 | $ 1,076 | $ 12,011 | (659) | [1] | $ 17 | |
AOCI Tax, Attributable to Parent | $ 179 | ||||||
[1] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $179 million and $160 million |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Feb. 06, 2019 | Feb. 05, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends, per share (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.24 | $ 0.22 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Significant Accounting Policies | Nature of Operations and Significant Accounting Policies Background CSX Corporation (“CSX”), together with its subsidiaries (the “Company”), based in Jacksonville, Florida, is one of the nation's leading transportation companies. The Company provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. CSX's principal operating subsidiary, CSX Transportation, Inc. (“CSXT”), provides an important link to the transportation supply chain through its approximately 20,500 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. The Company's intermodal business links customers to railroads via trucks and terminals. CSXT is also responsible for the Company's real estate sales, leasing, acquisition and management and development activities. In addition, as substantially all real estate sales, leasing, acquisition and management and development activities are focused on supporting railroad operations, all results of these activities are included in operating income. Other entities In addition to CSXT, the Company’s subsidiaries include CSX Intermodal Terminals, Inc. (“CSX Intermodal Terminals”), Total Distribution Services, Inc. (“TDSI”), Transflo Terminal Services, Inc. (“Transflo”), CSX Technology, Inc. (“CSX Technology”) and other subsidiaries. CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States and also performs drayage services (the pickup and delivery of intermodal shipments) for certain customers and trucking dispatch operations. TDSI serves the automotive industry with distribution centers and storage locations. Transflo connects non-rail served customers to the many benefits of rail by transferring products from rail to trucks. The biggest Transflo markets are chemicals and agriculture, which include shipments of plastics and ethanol. CSX Technology and other subsidiaries provide support services for the Company. 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 quarter ended March 31, 2019 and March 31, 2018 ; • Condensed consolidated comprehensive income statements for the quarter ended March 31, 2019 and March 31, 2018 ; • Consolidated balance sheets at March 31, 2019 and December 31, 2018 ; • Consolidated cash flow statements for the three months ended March 31, 2019 and March 31, 2018 ; and • Consolidated statements of changes in shareholders' equity for the three months ended March 31, 2019 and March 31, 2018 . 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 (“GAAP”) 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 subsequently filed current reports on Form 8-K. NOTE 1. Nature of Operations and Significant Accounting Policies, continued Fiscal Year The Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to “ first quarter(s)” or “ three months” indicate CSX's fiscal periods ending March 31, 2019 and March 31, 2018 , and references to "year-end" indicate the fiscal year ended December 31, 2018 . New Accounting Pronouncements Pronouncements adopted in 2019 In February 2016, the FASB issued ASU, Leases , which requires lessees to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability. Lessor accounting under the standard is substantially unchanged. Additional qualitative and quantitative disclosures are also required. CSX adopted the standard effective January 1, 2019 using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company adopted the following practical expedients and elected the following accounting policies related to this standard update: • Carry forward of historical lease classifications and current accounting treatment for existing land easements; • Short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and liabilities for leases with a term of 12 months or less; and • The option to not separate lease and non-lease components for certain equipment lease asset categories such as freight car, vehicles and work equipment. Adoption of this standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities of $534 million on the consolidated balance sheet as of January 1, 2019 . This amount is lower than previous estimates due to a lease amendment. The Company’s accounting for finance leases remained substantially unchanged . The standard did not materially impact operating results or liquidity. Disclosures related to the amount, timing and uncertainty of cash flows arising from leases are included in Note 5, Leases . Pronouncements to be adopted In June 2016, the FASB issued ASU Measurement of Credit Losses on Financial Instruments |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution: First Quarters 2019 2018 Numerator (Dollars in millions) : Net Earnings $ 834 $ 695 Denominator (Units in millions) : Average Common Shares Outstanding 814 885 Other Potentially Dilutive Common Shares 3 3 Average Common Shares Outstanding, Assuming Dilution 817 888 Net Earnings Per Share, Basic $ 1.02 $ 0.78 Net Earnings Per Share, Assuming Dilution $ 1.02 $ 0.78 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 and common stock equivalents adjusted for the effects of common stock that may be issued as a result of potentially dilutive instruments. CSX's potentially dilutive instruments are made up of equity awards, including performance units and employee stock options. When calculating diluted earnings per share, the potential shares that would be outstanding if all outstanding stock options were exercised are included. This number is different from outstanding stock options because it is offset by shares CSX could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent. Approximately 600 thousand and 800 thousand of total average outstanding stock options for the first quarters ended March 31, 2019 and March 31, 2018 , respectively, were excluded from the diluted earnings per share calculation because their effect was antidilutive. Share Repurchases In February 2018, the Company announced an increase to the $1.5 billion share repurchase program first announced in October 2017, bringing the total authorized to $5 billion . This program was completed on January 16, 2019. Also on January 16, 2019, the Company announced a new $5 billion share repurchase program. During the first quarters of 2019 and 2018 , the Company repurchased approximately $796 million , or 12 million shares, and $836 million , or 15 million shares, respectively. Under an accelerated share repurchase agreement executed in January 2018, the Company made a prepayment of $150 million to a financial institution and received an initial delivery of shares valued at $120 million . The remaining balance of $30 million was settled through receipt of additional shares in February 2018 with the final net number of shares calculated based on the volume-weighted average price of the Company's common stock over the term of the agreement, less a discount. Approximately 3 million total shares were repurchased under the agreement. NOTE 2. Earnings Per Share, continued Share repurchases may be made through a variety of methods including, but not limited to, open market purchases, purchases pursuant to Rule 10b5-1 plans, accelerated share repurchases and negotiated block purchases. The timing of share repurchases depends upon management's assessment of marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances. Shares are retired immediately upon repurchase. In accordance with the Equity Topic in the ASC, the excess of repurchase price over par value is recorded in retained earnings. Dividend Increase On February 6, 2019, the Company announced a 9 percent increase to the quarterly dividend from $0.22 per share of common stock to $0.24 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Under CSX's share-based compensation plans, awards consist of performance units, restricted stock awards, restricted stock units and stock options for management and stock grants for directors. Awards granted under the various programs 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 CSX's non-management directors upon recommendation of the Governance Committee. Share-based compensation expense for awards under share-based compensation plans and purchases made as part of the employee stock purchase plan is measured using the fair value of the award on the grant date and is recognized on a straight-line basis over the service period of the respective award. Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards. First Quarters (Dollars in millions) 2019 2018 Share-Based Compensation Expense: Performance Units $ 6 $ 6 Stock Options 2 4 Restricted Stock Units and Awards 2 1 Stock Awards for Directors 2 2 Employee Stock Purchase Plan 1 — Total Share-Based Compensation Expense $ 13 $ 13 Income Tax Benefit $ 28 $ 8 NOTE 3. Share-Based Compensation, continued Long-term Incentive Plan On February 6, 2019, the Company granted approximately 300 thousand performance units to certain employees under a new long-term incentive plan ("LTIP") for the years 2019 through 2021, which was adopted under the CSX Stock and Incentive Award Plan. During first quarter 2018, approximately 350 thousand performance units were granted pursuant to the corresponding LTIP. Payouts of performance units for the cycle ending with fiscal year 2021 will be based on the achievement of goals related to both operating ratio and free cash flow, in each case excluding non-recurring items as disclosed in the Company's financial statements. The cumulative operating ratio and cumulative free cash flow over the plan period will each comprise 50% of the payout and will be measured independently of the other. Grants were made in performance units, with each unit representing the right to receive one share of CSX common stock, and payouts will be made in CSX common stock. The payout range for participants will be between 0% and 200% of the target awards depending on Company performance against predetermined goals. Payouts for certain executive officers are subject to formulaic upward or downward adjustment by up to 25% , capped at an overall payout of 225% , based upon the Company's total shareholder return relative to specified comparable groups over the performance period. The fair values of the performance units awarded during the quarters ended March 31, 2019 and March 31, 2018 were calculated using a Monte-Carlo simulation model with the following weighted-average assumptions: First Quarters 2019 2018 Weighted-average assumptions used: Annual dividend yield 1.4 % 1.6 % Risk-free interest rate 2.5 % 2.3 % Annualized volatility 27.63 % 29.15 % Expected life (in years) 2.9 2.9 Stock Options Also, on February 6, 2019, the Company granted approximately 843 thousand stock options along with the corresponding LTIP. The fair value of stock options on the date of grant was $17.45 per option, which was calculated using the Black-Scholes valuation model. These stock options were granted with ten -year terms and vest over three years in equal installments each year on the anniversary of the grant date. The exercise price for stock options granted equals the closing market price of the underlying stock on the date of grant. These awards are time-based and are not based upon attainment of performance goals. During first quarter 2018, approximately 950 thousand stock options were granted pursuant to the corresponding LTIP. NOTE 3. Share-Based Compensation, continued The fair values of all stock option awards during first quarters 2019 and 2018 were estimated at the grant date with the following weighted average assumptions: First Quarters 2019 2018 Weighted-average grant-date fair value $ 17.45 $ 14.62 Stock options valuation assumptions: Annual dividend yield 1.3 % 1.5 % Risk-free interest rate 2.6 % 2.6 % Annualized volatility 25.8 % 27.0 % Expected life (in years) 6.0 6.5 Other pricing model inputs: Weighted-average grant-date market price of CSX stock (strike price) $ 68.09 $ 54.07 Restricted Stock Units Finally, on February 6, 2019, the Company granted approximately 65 thousand restricted stock units along with the corresponding LTIP. The restricted stock units vest three years after the date of grant. Participants receive cash dividend equivalents on the unvested shares during the restriction period. These awards are time-based and are not based upon CSX's attainment of operational targets. For information related to the Company's other outstanding long-term incentive compensation, see CSX's most recent annual report on Form 10-K. During first quarter 2018, approximately 85 thousand restricted stock units were granted pursuant to the corresponding LTIP. Restricted stock units are paid-out in CSX common stock on a one -for-one basis. Employee Stock Purchase Plan In May 2018, shareholders approved the 2018 CSX Employee Stock Purchase Plan (“ESPP”) for the benefit of Company employees. The Company registered 4 million shares of common stock that may be issued pursuant to this plan. Under the ESPP, employees may contribute between 1% and 10% of base compensation, after-tax, to purchase up to $25,000 of CSX common stock per year at 85% of the closing market price on either the grant date or the last day of the six-month offering period, whichever is lower. During the quarter ended March 31, 2019, 105 thousand shares of CSX stock were issued at a weighted average purchase price of $52.81 |
Casualty, Environmental and Oth
Casualty, Environmental and Other Reserves | 3 Months Ended |
Mar. 31, 2019 | |
Casualty, Environmental and Other Reserves [Abstract] | |
Casualty, Environmental and Other Reserves | Casualty, Environmental and Other Reserves Personal injury and environmental reserves are considered critical accounting estimates due to the need for significant management judgment. Casualty, environmental and other reserves are provided for in the consolidated balance sheets as shown in the table below. March 31, 2019 December 31, 2018 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 41 $ 100 $ 141 $ 40 $ 103 $ 143 Occupational 10 44 54 10 46 56 Total Casualty 51 144 195 50 149 199 Environmental 38 42 80 39 41 80 Other 23 21 44 24 21 45 Total $ 112 $ 207 $ 319 $ 113 $ 211 $ 324 These liabilities are accrued when probable and reasonably estimable in accordance with the Contingencies Topic in the ASC. Actual settlements and claims received could differ, and final outcomes of these matters cannot be predicted with certainty. Considering the legal defenses currently available, the liabilities that have been recorded and other factors, it is the opinion of management that none of these items individually, when finally resolved, will have a material adverse effect on the Company's financial condition, results of operations or liquidity. Should a number of these items occur in the same period, however, their combined effect could be material in that particular period. Casualty Casualty reserves of $195 million and $199 million as of March 31, 2019 and December 31, 2018 , respectively, represent accruals for personal injury, occupational disease and occupational injury claims. During second quarter 2018, the Company increased its self-insured retention amount for these claims from $ 50 million to $75 million per occurrence for claims occurring on or after June 1, 2018. Currently, no individual claim is expected to exceed the self-insured retention amount. 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 estimate. Actual results may vary from estimates due to the number, type and severity of the injury, costs of medical treatments and uncertainties in litigation. Most of the Company's casualty claims relate to CSXT. 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. NOTE 4. Casualty, Environmental and Other Reserves, continued 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”). CSXT retains an independent actuary to assist management in assessing the value of personal injury claims. An analysis is performed by the actuary quarterly and is reviewed by management. This analysis for the quarter resulted in an immaterial adjustment to the personal injury reserve. The methodology used by the actuary includes a development factor to reflect growth or reduction in the value of these personal injury claims based largely on CSXT's historical claims and settlement experience. Occupational Occupational reserves represent liabilities for occupational disease and injury claims. Occupational disease claims arise primarily from allegations of exposure to asbestos in the workplace. Occupational injury claims arise from allegations of exposure to certain other materials in the workplace, such as solvents, soaps, chemicals (collectively referred to as “irritants”) and diesel fuels (like exhaust fumes) or allegations of chronic physical injuries resulting from work conditions, such as repetitive stress injuries. Environmental Environmental reserves were $80 million as of each March 31, 2019 and December 31, 2018 . The Company is a party to various proceedings related to environmental issues, including administrative and judicial proceedings involving private parties and regulatory agencies. The Company has been identified as a potentially responsible party at approximately 226 environmentally impaired sites. Many of these are, or may be, subject to remedial action under the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), also known as the Superfund Law, or similar state statutes. Most of these proceedings arose from environmental conditions on properties used for ongoing or discontinued railroad operations. A number of these proceedings, however, are based on allegations that the Company, or its predecessors, sent hazardous substances to facilities owned or operated by others for treatment, recycling or disposal. In addition, some of the Company's land holdings were leased to others for commercial or industrial uses that may have resulted in releases of hazardous substances or other regulated materials onto the property and could give rise to proceedings against the Company. In any such proceedings, the Company is subject to environmental clean-up and enforcement actions under the Superfund Law, as well as similar state laws that may impose joint and several liability for clean-up and enforcement costs on current and former owners and operators of a site without regard to fault or the legality of the original conduct. These costs could be substantial. NOTE 4. Casualty, Environmental and Other Reserves, continued In accordance with the Asset Retirement and Environmental Obligations Topic in the ASC, the Company reviews its role with respect to each site identified at least quarterly, giving consideration to a number of factors such as: • type of clean-up required; • nature of the Company's alleged connection to the location (e.g., generator of waste sent to the site or owner or operator of the site); • extent of the Company's alleged connection (e.g., volume of waste sent to the location and other relevant factors); and • number, connection and financial viability of other named and unnamed potentially responsible parties at the location. Based on the review process, the Company has recorded amounts to cover contingent anticipated future environmental remediation costs with respect to each site to the extent such costs are reasonably estimable and probable. The recorded liabilities for estimated future environmental costs are undiscounted. The liability includes future costs for remediation and restoration of sites as well as any significant ongoing monitoring costs, but excludes any anticipated insurance recoveries. Payments related to these liabilities are expected to be made over the next several years. Environmental remediation costs are included in materials, supplies and other on the consolidated income statements. Currently, the Company does not possess sufficient information to reasonably estimate the amounts of additional liabilities, if any, on some sites until completion of future environmental studies. In addition, conditions that are currently unknown could, at any given location, result in additional exposure, the amount and materiality of which cannot presently be reasonably estimated. Based upon information currently available, however, the Company believes its environmental reserves accurately reflect the estimated cost of remedial actions currently required. Other Other reserves of $44 million and $45 million as of March 31, 2019 and December 31, 2018 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases CSX has various lease agreements with terms up to 50 years, including leases of land, land with integral equipment (e.g. track), buildings and various equipment. Some leases include options to purchase, terminate or extend for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. At inception, the Company determines if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of the Company’s lease arrangements contain lease components (e.g. minimum rent payments) and non-lease components (e.g. maintenance, labor charges, etc.). The Company generally accounts for each component separately based on the estimated standalone price of each component. For certain equipment leases, such as freight car, vehicles and work equipment, the Company accounts for the lease and non-lease components as a single lease component. Certain of the Company’s lease agreements include rental payments that are adjusted periodically for an index or rate. The leases are initially measured using the projected payments adjusted for the index or rate in effect at the commencement date. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating Leases Operating leases are included in right-of-use lease assets, other current liabilities and long-term lease liabilities on the consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s secured incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases, which have an initial term of 12 months or less, are not recorded on the balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense is included in equipment and other rents on the consolidated income statements and is reported net of lease income. Lease income is not material to the results of operations for the quarter ended March 2019. NOTE 5. Leases, continued The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of March 31, 2019. (Dollars in Millions) March 31, 2019 Maturity of Lease Liabilities Lease Payments 2019 (remaining) $ 41 2020 56 2021 49 2022 44 2023 38 Thereafter 1,241 Total undiscounted operating lease payments $ 1,469 Less: Imputed interest (914 ) Present value of operating lease liabilities $ 555 Balance Sheet Classification Current lease liabilities (recorded in other current liabilities) $ 53 Long-term lease liabilities 502 Total operating lease liabilities $ 555 Other Information Weighted-average remaining lease term for operating leases 33 years Weighted-average discount rate for operating leases 5.0 % Cash Flows An initial right-of-use asset of $534 million was recognized as a non-cash asset addition with the adoption of the new lease accounting standard. Additional right-of-use assets of $30 million were recognized as non-cash asset additions that resulted from new operating lease liabilities during first quarter 2019. Cash paid for amounts included in the present value of operating lease liabilities was $14 million during first quarter 2019 and is included in operating cash flows. Operating Lease Costs Operating lease costs were $18 million during first quarter 2019. These costs are primarily related to long-term operating leases, but also include immaterial amounts for variable leases and short-term leases with terms greater than 30 days. Finance Leases |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance The Company maintains insurance programs with substantial limits for property damage (which includes business interruption) and third-party liability. A certain amount of risk is retained by the Company on each of the property and liability programs. The Company has a $50 million per occurrence retention for floods and named windstorms and a $ 25 million per occurrence retention for property losses other than floods and named windstorms. For claims occurring on or after June 1, 2018, the Company increased its self-insured retention for third-party liability claims from $ 50 million to $75 million per occurrence. While the Company believes its insurance coverage is adequate, future claims could exceed existing insurance coverage or insurance may not continue to be available at commercially reasonable rates. Legal The Company is involved in litigation incidental to its business and is a party to a number of legal actions and claims, various governmental proceedings and private civil lawsuits, including, but not limited to, those related to fuel surcharge practices, tax matters, environmental and hazardous material exposure matters, FELA and labor claims by current or former employees, other personal injury or property claims and disputes and complaints involving certain transportation rates and charges. Some of the legal proceedings include claims for compensatory as well as punitive damages and others are, or are purported to be, class actions. While the final outcome of these matters cannot be reasonably determined, considering, among other things, the legal defenses available and liabilities that have been recorded along with applicable insurance, it is currently the opinion of management that none of these pending items is likely to have a material adverse effect on the Company's financial condition, results of operations or liquidity. An unexpected adverse resolution of one or more of these items, however, could have a material adverse effect on the Company's financial condition, results of operations or liquidity in that particular period. The Company is able to estimate a range of possible loss for certain legal proceedings for which a loss is reasonably possible in excess of reserves established. The Company has estimated this range to be $4 million to $102 million in aggregate at March 31, 2019 . This estimated aggregate range is based upon currently available information and is subject to significant judgment and a variety of assumptions. Accordingly, the Company's estimate will change from time to time, and actual losses may vary significantly from the current estimate. Fuel Surcharge Antitrust Litigation In May 2007, class action lawsuits were filed against CSXT and three other U.S.-based Class I railroads alleging that the defendants' fuel surcharge practices relating to contract and unregulated traffic resulted from an illegal conspiracy in violation of antitrust laws. In November 2007, the class action lawsuits were consolidated in federal court in the District of Columbia, where they are now pending. The suit seeks treble damages allegedly sustained by purported class members as well as attorneys' fees and other relief. Plaintiffs are expected to allege damages at least equal to the fuel surcharges at issue. NOTE 6. Commitments and Contingencies, continued In June 2012, the District Court certified the case as a class action. The decision was not a ruling on the merits of plaintiffs' claims, but rather a decision to allow the plaintiffs to seek to prove the case as a class. The defendant railroads petitioned the U.S. Court of Appeals for the D.C. Circuit for permission to appeal the District Court's class certification decision. In August 2013, the D.C. Circuit issued a decision vacating the class certification decision and remanded the case to the District Court to reconsider its class certification decision. On October 10, 2017, the District Court issued an order denying class certification. The U.S. Court of Appeals for the D.C. Circuit is reviewing the District Court's denial of class certification and held oral argument on September 28, 2018, with a decision yet to be issued. The District Court has delayed proceedings on the merits of the case pending the outcome of the class certification proceedings. CSXT believes that its fuel surcharge practices were arrived at and applied lawfully and that the case is without merit. Accordingly, the Company intends to defend itself vigorously. However, penalties for violating antitrust laws can be severe, and resolution of this matter or an unexpected adverse decision on the merits could have a material adverse effect on the Company's financial condition, results of operations or liquidity in that particular period. Environmental CSXT is indemnifying Pharmacia LLC (formerly known as Monsanto Company) for certain liabilities associated with real estate located in Kearny, New Jersey along the Lower Passaic River (the “Property”). The Property, which was formerly owned by Pharmacia, is now owned by CSXT. CSXT's indemnification and defense duties arise with respect to several matters. The U.S. Environmental Protection Agency ("EPA"), using its CERCLA authority, seeks cleanup and removal costs and other damages associated with the presence of hazardous substances in the 17 -mile Lower Passaic River Study Area (the "Study Area”). CSXT, on behalf of Pharmacia, and a significant number of other potentially responsible parties are together conducting a Remedial Investigation and Feasibility Study of the Study Area pursuant to an Administrative Settlement Agreement and Order on Consent with the EPA. In March 2016, EPA issued its Record of Decision detailing the agency’s mandated remedial process for the lower 8 miles of the Study Area. Approximately 80 parties, including Pharmacia, are participating in an EPA-directed allocation process to assign responsibility for costs to be incurred implementing the remedy selected for the lower 8 miles of the Study Area. CSXT is participating in the allocation process on behalf of Pharmacia. At a later date, EPA will select a remedy for the remainder of the Study Area and is expected to again seek the participation of private parties to implement the selected remedy using EPA’s CERCLA authority to compel such participation, if necessary. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel. CSX also sponsors a non-contributory post-retirement medical plan and a life insurance plan that provide certain benefits to eligible employees hired prior to January 1, 2003. Independent actuaries compute the amounts of liabilities and expenses relating to these plans subject to the assumptions that the Company determines are appropriate based on historical trends, current market rates and future projections. These amounts are reviewed by management. Only the service cost component of net periodic benefit costs is included in labor and fringe expense on the consolidated income statement. All other components of net periodic benefit cost are included in other income - net. Pension Benefits (Dollars in millions) First Quarters 2019 2018 Service Cost Included in Labor and Fringe $ 8 $ 9 Interest Cost 26 23 Expected Return on Plan Assets (43 ) (44 ) Amortization of Net Loss 7 10 Total Income Included in Other Income - Net (10 ) (11 ) Net Periodic Benefit Credit $ (2 ) $ (2 ) Other Post-retirement Benefits (Dollars in millions) First Quarters 2019 2018 Service Cost Included in Labor and Fringe $ — $ — Interest Cost 1 2 Amortization of Prior Service Costs (2 ) — Total (Income) Expense Included in Other Income - Net (1 ) 2 Net Periodic Benefit (Credit) Cost $ (1 ) $ 2 Qualified pension plan obligations are funded in accordance with regulatory requirements and with an objective of meeting or exceeding minimum funding requirements necessary to avoid restrictions on flexibility of plan operation and benefit payments. No contributions to the Company's qualified pension plans are required in 2019 |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Total activity related to long-term debt as of the end of first quarter 2019 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 11, Fair Value Measurements. (Dollars in millions) Current Portion Long-term Portion Total Long-term debt as of December 31, 2018 $ 18 $ 14,739 $ 14,757 2019 activity: Long-term debt issued — 1,000 1,000 Discount, premium and other activity — 9 9 Long-term debt as of March 31, 2019 $ 18 $ 15,748 $ 15,766 Debt Issuance On February 28, 2019, CSX issued $600 million of 4.25% notes due 2029 , which was a reopening of existing notes originally issued in November 2018, and $400 million of 4.50% notes due 2049 . These notes are included in the consolidated balance sheets under long-term debt and may be redeemed by the Company at any time, subject to payment of certain make-whole premiums. The net proceeds will be used for general corporate purposes, which may include repurchases of CSX's common stock, capital investment, working capital requirements, improvements in productivity and other cost reduction initiatives at the Company’s major transportation units. Credit Facility On March 29, 2019, CSX replaced its existing $1.0 billion unsecured, revolving credit facility with a new $1.2 billion unsecured, revolving credit facility backed by a diverse syndicate of banks. The new facility allows same-day borrowings at floating interest rates, based on LIBOR or an agreed-upon replacement, plus a spread that depends upon CSX's senior unsecured debt ratings. LIBOR is the London Interbank Offered Rate which is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds. This facility expires in March 2024, and at March 31, 2019, the Company had no outstanding balances under this facility. Commitment fees and interest rates payable under the facility were similar to fees and rates available to comparably rated investment-grade borrowers. As of first quarter 2019 , CSX was in compliance with all covenant requirements under this facility. Commercial Paper In September 2018, the Company established a commercial paper program, backed by the revolving credit facility, under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1.0 billion outstanding at any one time. Proceeds from issuances of the notes are expected to be used for general corporate purposes. At March 31, 2019, the Company had no |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company’s revenues are primarily derived from the transportation of freight as performance obligations that arise from its contracts with customers are satisfied. The following table presents the Company’s revenues disaggregated by lines of business as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors: First Quarters (Dollars in millions) 2019 2018 Chemicals $ 586 $ 557 Agricultural and Food Products 344 307 Automotive 311 304 Forest Products 216 195 Metals and Equipment 189 186 Minerals 123 114 Fertilizers 110 116 Total Merchandise 1,879 1,779 Coal 538 503 Intermodal 428 449 Other 168 145 Total $ 3,013 $ 2,876 Revenue Recognition The Company generates revenue from freight billings under contracts with customers generally on a rate per carload, container or ton-basis based on length of haul and commodities carried. The Company’s performance obligation arises when it receives a bill of lading (“BOL”) to transport a customer's commodities at a negotiated price contained in a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received, a contract is formed whereby the parties are committed to perform, collectability of consideration is probable and the rights of the parties, shipping terms and conditions, and payment terms are identified. A customer may submit several BOLs for transportation services at various times throughout a service agreement term but each shipment represents a distinct service that is a separately identified performance obligation. The average transit time to complete a shipment is between 3 to 8 days and payments for transportation services are normally billed once a BOL is received and are generally due within 15 days after the invoice date. The Company recognizes revenue over transit time of freight as it moves from origin to destination. Revenue for services started but not completed at the reporting date is allocated based on the relative transit time in each reporting period, with the portion allocated for services subsequent to the reporting date considered remaining performance obligations. NOTE 9. Revenues, continued The certain key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows: • Revenue associated with shipments in transit is recognized ratably over transit time and is based on average cycle times to move commodities and products from their origin to their final destination or interchange; • Adjustments to revenue for billing corrections and billing discounts; • Adjustments to revenue for overcharge claims filed by customers, which are based on historical payments to customers for rate overcharges as a percentage of total billing; and • Incentive-based refunds to customers, which are primarily volume-related, are recorded as a reduction to revenue on the basis of the projected liability (this estimate is based on historical activity, current volume levels and forecasted future volume). Revenue related to interline transportation services that involve the services of another party, such as another railroad, is reported on a net basis. The portion of the gross amount billed to customers that is remitted by the Company to another party is not reflected as revenue. Other revenue is comprised of revenue from regional subsidiary railroads and incidental charges, including demurrage and switching. It is recorded upon completion of the service and accounted for 6% of the Company’s total revenue in the first quarter 2019. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate. Demurrage represents charges assessed when freight cars are held by a customer beyond a specified period of time. Switching revenue is primarily generated when the Company switches cars for a customer or another railroad. During the first quarters 2019 and 2018, revenue recognized from performance obligations related to prior periods (for example, due to changes in transaction price), was not material. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to future reporting periods for freight services started but not completed at the reporting date . This includes the unearned portion of billed and unbilled amounts for cancellable freight shipments in transit. The Company expects to recognize the unearned portion of revenue for freight services in transit within one week of the reporting date. As of March 31, 2019, the Company had no material remaining performance obligations. Contract Balances and Accounts Receivable The timing of revenue recognition, billings and cash collections results in accounts receivable and customer advances and deposits (contract liabilities) on the consolidated balance sheets. The Company had no material contract assets, contract liabilities or deferred contract costs recorded on the consolidated balance sheet as of March 31, 2019. NOTE 9. Revenues, continued The Company’s accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for doubtful accounts. (Dollars in millions) March 31, December 31, Freight Receivables $ 891 $ 846 Freight Allowance for Doubtful Accounts (17 ) (18 ) Freight Receivables, net 874 828 Non-Freight Receivables 241 190 Non-Freight Allowance for Doubtful Accounts (9 ) (8 ) Non-Freight Receivables, net 232 182 Total Accounts Receivable, net $ 1,106 $ 1,010 Freight receivables include amounts earned, billed and unbilled , and currently due from customers for transportation-related services. Non-freight receivables include amounts billed and unbilled and currently due related to government reimbursement receivables and other non-revenue receivables. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and economic conditions. Impairment losses recognized on the Company’s accounts receivable were no |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes There have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Financial Instruments Topic in the ASC requires disclosures 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. Disclosure of the fair value of pension plan assets is only required annually. Also, this rule clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the value of the Company's 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.); and • Level 3 - significant unobservable inputs (including the Company's own assumptions about the assumptions market participants would use 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 Company's investment assets, valued with assistance from a third-party trustee, consist of certificates of deposits, commercial paper, corporate bonds and government securities and are carried at fair value on the consolidated balance sheet per the Fair Value Measurements and Disclosures Topic in the ASC. There are several valuation methodologies used for those assets as described below. • Certificates of Deposit and Commercial Paper (Level 2) : Valued at amortized cost, which approximates fair value; and • Corporate Bonds and Government Securities (Level 2) : Valued using broker quotes that utilize observable market inputs. The Company's investment assets are carried at fair value on the consolidated balance sheets as summarized in the following table. All of the inputs used to determine the fair value of the Company's investments are Level 2 inputs. The amortized cost basis of these investments was $903 million and $340 million as of March 31, 2019 and December 31, 2018 , respectively. (Dollars in Millions) March 31, December 31, Certificates of Deposit and Commercial Paper $ 813 $ 250 Corporate Bonds 59 56 Government Securities 34 35 Total investments at fair value $ 906 $ 341 NOTE 11. Fair Value Measurements, continued These investments have the following maturities: (Dollars in millions) March 31, December 31, Less than 1 year $ 822 $ 253 1 - 5 years 8 14 5 - 10 years 24 26 Greater than 10 years 52 48 Total investments at fair value $ 906 $ 341 Long-term Debt Long-term debt is reported at carrying amount on the consolidated balance sheets and is the Company's only financial instrument with fair values significantly different from their carrying amounts. The majority of the Company's long-term debt is valued with assistance from an independent third party adviser that utilizes closing transactions, market quotes or market values of comparable debt. For those instruments not valued by the independent adviser, the fair value has been estimated by applying market rates of similar instruments to the scheduled contractual debt payments and maturities. These market rates are provided by the same independent adviser. All of the inputs used to determine the fair value of the Company's long-term debt are 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, credit ratings, values of similar financial instruments, size of the transaction, cash flow projections and comparable trades. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued. The fair value of a company's debt is a measure of its current value under present market conditions. Under current accounting rules, the fair value of debt does not impact the financial statements. The fair value and carrying value of the Company's long-term debt is as follows: (Dollars in millions) March 31, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 16,791 $ 14,914 Carrying Value 15,766 14,757 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) CSX reports comprehensive earnings or loss in accordance with the Comprehensive Income Topic in the ASC in the Consolidated Comprehensive Income Statement. Total comprehensive earnings are defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders (e.g. issuance of equity securities and dividends). Generally, for CSX, total comprehensive earnings equal net earnings plus or minus adjustments for pension and other post-retirement liabilities. Total comprehensive earnings represent the activity for a period net of tax and were $836 million and $596 million for first quarters 2019 and 2018 , respectively. While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. For CSX, AOCI is primarily the cumulative balance related to pension and other post-retirement benefit adjustments and CSX's share of AOCI of equity method investees. Changes in the AOCI balance by component are shown in the following table. Amounts reclassified in pension and other post-employment benefits to net earnings relate to the amortization of actuarial losses and are included in other income - net on the consolidated income statements. See Note 7, Employee Benefit Plans, for further information. Other primarily represents CSX's share of AOCI of equity method investees. Amounts reclassified in other to net earnings are included in equity earnings of affiliates on the consolidated income statements. Pension and Other Post-Employment Benefits Other Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Balance December 31, 2018, Net of Tax $ (604 ) $ (57 ) $ (661 ) Other Comprehensive Income (Loss) Loss Before Reclassifications — (2 ) (2 ) Amounts Reclassified to Net Earnings 6 — 6 Tax Expense (1 ) (1 ) (2 ) Total Other Comprehensive Income (Loss) 5 (3 ) 2 Balance March 31, 2019, Net of Tax $ (599 ) $ (60 ) $ (659 ) |
Summarized Consolidating Financ
Summarized Consolidating Financial Data | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Summarized Consolidating Financial Data | Summarized Consolidating Financial Data Consolidating Income Statements (Dollars in millions) First Quarter 2019 CSX Corporation CSX Transportation Eliminations and Other Consolidated Revenue $ — $ 2,993 $ 20 $ 3,013 Expense (137 ) 1,968 (37 ) 1,794 Operating Income 137 1,025 57 1,219 Equity in Earnings of Subsidiaries 874 — (874 ) — Interest (Expense) / Benefit (216 ) (11 ) 49 (178 ) Other Income / (Expense) - Net 8 52 (37 ) 23 Earnings Before Income Taxes 803 1,066 (805 ) 1,064 Income Tax Benefit / (Expense) 31 (245 ) (16 ) (230 ) Net Earnings $ 834 $ 821 $ (821 ) $ 834 Total Comprehensive Earnings $ 836 $ 819 $ (819 ) $ 836 First Quarter 2018 CSX Corporation CSX Transportation Eliminations and Other Consolidated Revenue $ — $ 2,857 $ 19 $ 2,876 Expense (78 ) 1,943 (33 ) 1,832 Operating Income 78 914 52 1,044 Equity in Earnings of Subsidiaries 758 — (758 ) — Interest (Expense) / Benefit (164 ) (9 ) 24 (149 ) Other Income / (Expense) - Net 4 23 (10 ) 17 Earnings Before Income Taxes 676 928 (692 ) 912 Income Tax Benefit / (Expense) 19 (224 ) (12 ) (217 ) Net Earnings $ 695 $ 704 $ (704 ) $ 695 Total Comprehensive Earnings $ 596 $ 700 $ (700 ) $ 596 continued Consolidating Balance Sheet (Dollars in millions) March 31, 2019 CSX Corporation CSX Transportation Eliminations and Other Consolidated ASSETS Current Assets Cash and Cash Equivalents $ 1,032 $ 143 $ 13 $ 1,188 Short-term Investments 813 — 9 822 Accounts Receivable - Net — 1,058 48 1,106 Receivable from Affiliates 1,022 5,498 (6,520 ) — Materials and Supplies — 241 — 241 Other Current Assets — 109 13 122 Total Current Assets 2,867 7,049 (6,437 ) 3,479 Properties 1 41,896 2,929 44,826 Accumulated Depreciation (1 ) (11,191 ) (1,646 ) (12,838 ) Properties - Net — 30,705 1,283 31,988 Investments in Conrail — — 948 948 Affiliates and Other Companies (39 ) 868 16 845 Investments in Consolidated Subsidiaries 32,656 — (32,656 ) — Right-of-Use Lease Asset — 528 22 550 Other Long-term Assets — 596 (252 ) 344 Total Assets $ 35,484 $ 39,746 $ (37,076 ) $ 38,154 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 202 $ 773 $ 44 $ 1,019 Labor and Fringe Benefits Payable 33 348 25 406 Payable to Affiliates 7,480 437 (7,917 ) — Casualty, Environmental and Other Reserves — 98 14 112 Current Maturities of Long-term Debt — 18 — 18 Income and Other Taxes Payable (275 ) 444 24 193 Other Current Liabilities 1 165 12 178 Total Current Liabilities 7,441 2,283 (7,798 ) 1,926 Casualty, Environmental and Other Reserves — 172 35 207 Long-term Debt 15,040 708 — 15,748 Deferred Income Taxes - Net (129 ) 6,645 227 6,743 Long-term Lease Liability — 487 15 502 Other Long-term Liabilities 704 213 (334 ) 583 Total Liabilities $ 23,056 $ 10,508 $ (7,855 ) $ 25,709 Shareholders' Equity Common Stock, $1 Par Value $ 809 $ 181 $ (181 ) $ 809 Other Capital 267 5,096 (5,096 ) 267 Retained Earnings 12,011 23,893 (23,893 ) 12,011 Accumulated Other Comprehensive Loss (659 ) 51 (51 ) (659 ) Noncontrolling Interest — 17 — 17 Total Shareholders' Equity $ 12,428 $ 29,238 $ (29,221 ) $ 12,445 Total Liabilities and Shareholders' Equity $ 35,484 $ 39,746 $ (37,076 ) $ 38,154 continued Consolidating Balance Sheet (Dollars in millions) December 31, 2018 CSX Corporation CSX Transportation Eliminations and Other Consolidated ASSETS Current Assets Cash and Cash Equivalents $ 716 $ 130 $ 12 $ 858 Short-term Investments 250 — 3 253 Accounts Receivable - Net 1 1,003 6 1,010 Receivable from Affiliates 1,020 5,214 (6,234 ) — Materials and Supplies — 263 — 263 Other Current Assets 63 104 14 181 Total Current Assets 2,050 6,714 (6,199 ) 2,565 Properties 1 41,897 2,907 44,805 Accumulated Depreciation (1 ) (11,194 ) (1,612 ) (12,807 ) Properties - Net — 30,703 1,295 31,998 Investments in Conrail — — 943 943 Affiliates and Other Companies (39 ) 859 16 836 Investment in Consolidated Subsidiaries 32,033 — (32,033 ) — Other Long-term Assets 2 598 (213 ) 387 Total Assets $ 34,046 $ 38,874 $ (36,191 ) $ 36,729 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 132 $ 763 $ 54 $ 949 Labor and Fringe Benefits Payable 41 440 69 550 Payable to Affiliates 6,973 633 (7,606 ) — Casualty, Environmental and Other Reserves — 99 14 113 Current Maturities of Long-term Debt — 18 — 18 Income and Other Taxes Payable (290 ) 392 4 106 Other Current Liabilities 11 162 6 179 Total Current Liabilities 6,867 2,507 (7,459 ) 1,915 Casualty, Environmental and Other Reserves — 176 35 211 Long-term Debt 14,029 710 — 14,739 Deferred Income Taxes - Net (134 ) 6,601 223 6,690 Other Long-term Liabilities 721 211 (338 ) 594 Total Liabilities $ 21,483 $ 10,205 $ (7,539 ) $ 24,149 Shareholders' Equity Common Stock, $1 Par Value $ 818 $ 181 $ (181 ) $ 818 Other Capital 249 5,096 (5,096 ) 249 Retained Earnings 12,157 23,322 (23,322 ) 12,157 Accumulated Other Comprehensive Loss (661 ) 53 (53 ) (661 ) Noncontrolling Minority Interest — 17 — 17 Total Shareholders' Equity $ 12,563 $ 28,669 $ (28,652 ) $ 12,580 Total Liabilities and Shareholders' Equity $ 34,046 $ 38,874 $ (36,191 ) $ 36,729 continued Consolidating Cash Flow Statements (Dollars in millions) Three Months 2019 CSX Corporation CSX Transportation Eliminations and Other Consolidated Operating Activities Net Cash Provided by (Used in) Operating Activities $ 852 $ 533 $ (212 ) $ 1,173 Investing Activities Property Additions — (319 ) (34 ) (353 ) Proceeds from Property Dispositions — 51 (3 ) 48 Purchases of Short-term Investments (813 ) — — (813 ) Proceeds from Sales of Short-term Investments 250 — — 250 Other Investing Activities (1 ) (1 ) — (2 ) Net Cash Provided by (Used in) Investing Activities (564 ) (269 ) (37 ) (870 ) Financing Activities Long-term Debt Issued 1,000 — — 1,000 Dividends Paid (195 ) (250 ) 250 (195 ) Shares Repurchased (796 ) — — (796 ) Other Financing Activities 19 (1 ) — 18 Net Cash Provided by (Used in) Financing Activities 28 (251 ) 250 27 Net Increase (Decrease) in Cash and Cash Equivalents 316 13 1 330 Cash and Cash Equivalents at Beginning of Period 716 130 12 858 Cash and Cash Equivalents at End of Period $ 1,032 $ 143 $ 13 $ 1,188 NOTE 13. Summarized Consolidating Financial Data, continued Consolidating Cash Flow Statements (Dollars in millions) Three Months 2018 CSX Corporation CSX Transportation Eliminations and Other Consolidated Operating Activities Net Cash Provided by (Used in) Operating Activities $ 691 $ 621 $ (346 ) $ 966 Investing Activities Property Additions — (339 ) (29 ) (368 ) Proceeds from Property Dispositions — 52 — 52 Proceeds from Sales of Short-term Investments — — 8 8 Other Investing Activities (1 ) (120 ) 113 (8 ) Net Cash (Used in) Provided by Investing Activities (1 ) (407 ) 92 (316 ) Financing Activities Long-term Debt Issued 2,000 — — 2,000 Dividends Paid (194 ) (250 ) 250 (194 ) Shares Repurchased (836 ) — — (836 ) Other Financing Activities (40 ) (4 ) 3 (41 ) Net Cash Provided by (Used in) Financing Activities 930 (254 ) 253 929 Net Increase (Decrease) in Cash and Cash Equivalents 1,620 (40 ) (1 ) 1,579 Cash and Cash Equivalents at Beginning of Period 274 121 6 401 Cash and Cash Equivalents at End of Period $ 1,894 $ 81 $ 5 $ 1,980 |
Nature of Operations and Sign_2
Nature of Operations and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 quarter ended March 31, 2019 and March 31, 2018 ; • Condensed consolidated comprehensive income statements for the quarter ended March 31, 2019 and March 31, 2018 ; • Consolidated balance sheets at March 31, 2019 and December 31, 2018 ; • Consolidated cash flow statements for the three months ended March 31, 2019 and March 31, 2018 ; and • Consolidated statements of changes in shareholders' equity for the three months ended March 31, 2019 and March 31, 2018 . |
Fiscal Year | The Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to “ first quarter(s)” or “ three months” indicate CSX's fiscal periods ending March 31, 2019 and March 31, 2018 , and references to "year-end" indicate the fiscal year ended December 31, 2018 . |
New Accounting Pronouncements | Pronouncements adopted in 2019 In February 2016, the FASB issued ASU, Leases , which requires lessees to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability. Lessor accounting under the standard is substantially unchanged. Additional qualitative and quantitative disclosures are also required. CSX adopted the standard effective January 1, 2019 using the cumulative-effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company adopted the following practical expedients and elected the following accounting policies related to this standard update: • Carry forward of historical lease classifications and current accounting treatment for existing land easements; • Short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and liabilities for leases with a term of 12 months or less; and • The option to not separate lease and non-lease components for certain equipment lease asset categories such as freight car, vehicles and work equipment. Adoption of this standard resulted in the recognition of operating lease right-of-use assets and corresponding lease liabilities of $534 million on the consolidated balance sheet as of January 1, 2019 . This amount is lower than previous estimates due to a lease amendment. The Company’s accounting for finance leases remained substantially unchanged . The standard did not materially impact operating results or liquidity. Disclosures related to the amount, timing and uncertainty of cash flows arising from leases are included in Note 5, Leases . Pronouncements to be adopted In June 2016, the FASB issued ASU Measurement of Credit Losses on Financial Instruments |
Revenue Recognition | Freight receivables include amounts earned, billed and unbilled , and currently due from customers for transportation-related services. Non-freight receivables include amounts billed and unbilled and currently due related to government reimbursement receivables and other non-revenue receivables. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and economic conditions. The average transit time to complete a shipment is between 3 to 8 days and payments for transportation services are normally billed once a BOL is received and are generally due within 15 days after the invoice date. The Company recognizes revenue over transit time of freight as it moves from origin to destination. Revenue for services started but not completed at the reporting date is allocated based on the relative transit time in each reporting period, with the portion allocated for services subsequent to the reporting date considered remaining performance obligations. NOTE 9. Revenues, continued The certain key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows: • Revenue associated with shipments in transit is recognized ratably over transit time and is based on average cycle times to move commodities and products from their origin to their final destination or interchange; • Adjustments to revenue for billing corrections and billing discounts; • Adjustments to revenue for overcharge claims filed by customers, which are based on historical payments to customers for rate overcharges as a percentage of total billing; and • Incentive-based refunds to customers, which are primarily volume-related, are recorded as a reduction to revenue on the basis of the projected liability (this estimate is based on historical activity, current volume levels and forecasted future volume). Revenue related to interline transportation services that involve the services of another party, such as another railroad, is reported on a net basis. The portion of the gross amount billed to customers that is remitted by the Company to another party is not reflected as revenue. Other revenue is comprised of revenue from regional subsidiary railroads and incidental charges, including demurrage and switching. It is recorded upon completion of the service and accounted for 6% of the Company’s total revenue in the first quarter 2019. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate. Demurrage represents charges assessed when freight cars are held by a customer beyond a specified period of time. Switching revenue is primarily generated when the Company switches cars for a customer or another railroad. . |
Fair Value Measurements | Long-term Debt Long-term debt is reported at carrying amount on the consolidated balance sheets and is the Company's only financial instrument with fair values significantly different from their carrying amounts. The majority of the Company's long-term debt is valued with assistance from an independent third party adviser that utilizes closing transactions, market quotes or market values of comparable debt. For those instruments not valued by the independent adviser, the fair value has been estimated by applying market rates of similar instruments to the scheduled contractual debt payments and maturities. These market rates are provided by the same independent adviser. All of the inputs used to determine the fair value of the Company's long-term debt are Level 2 inputs. Financial Instruments Topic in the ASC requires disclosures 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. Disclosure of the fair value of pension plan assets is only required annually. Also, this rule clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the value of the Company's 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.); and • Level 3 - significant unobservable inputs (including the Company's own assumptions about the assumptions market participants would use 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 Company's investment assets, valued with assistance from a third-party trustee, consist of certificates of deposits, commercial paper, corporate bonds and government securities and are carried at fair value on the consolidated balance sheet per the Fair Value Measurements and Disclosures Topic in the ASC. There are several valuation methodologies used for those assets as described below. • Certificates of Deposit and Commercial Paper (Level 2) : Valued at amortized cost, which approximates fair value; and • Corporate Bonds and Government Securities (Level 2) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic Earnings Per Share, Assuming Dilution | The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution: First Quarters 2019 2018 Numerator (Dollars in millions) : Net Earnings $ 834 $ 695 Denominator (Units in millions) : Average Common Shares Outstanding 814 885 Other Potentially Dilutive Common Shares 3 3 Average Common Shares Outstanding, Assuming Dilution 817 888 Net Earnings Per Share, Basic $ 1.02 $ 0.78 Net Earnings Per Share, Assuming Dilution $ 1.02 $ 0.78 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-Based Compensation and Related Income Tax Benefit | Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards. First Quarters (Dollars in millions) 2019 2018 Share-Based Compensation Expense: Performance Units $ 6 $ 6 Stock Options 2 4 Restricted Stock Units and Awards 2 1 Stock Awards for Directors 2 2 Employee Stock Purchase Plan 1 — Total Share-Based Compensation Expense $ 13 $ 13 Income Tax Benefit $ 28 $ 8 |
Schedule of Weighted Average Assumptions | The fair values of the performance units awarded during the quarters ended March 31, 2019 and March 31, 2018 were calculated using a Monte-Carlo simulation model with the following weighted-average assumptions: First Quarters 2019 2018 Weighted-average assumptions used: Annual dividend yield 1.4 % 1.6 % Risk-free interest rate 2.5 % 2.3 % Annualized volatility 27.63 % 29.15 % Expected life (in years) 2.9 2.9 |
Schedule of Fair Value Assumptions for Stock Option Awards | The fair values of all stock option awards during first quarters 2019 and 2018 were estimated at the grant date with the following weighted average assumptions: First Quarters 2019 2018 Weighted-average grant-date fair value $ 17.45 $ 14.62 Stock options valuation assumptions: Annual dividend yield 1.3 % 1.5 % Risk-free interest rate 2.6 % 2.6 % Annualized volatility 25.8 % 27.0 % Expected life (in years) 6.0 6.5 Other pricing model inputs: Weighted-average grant-date market price of CSX stock (strike price) $ 68.09 $ 54.07 |
Casualty, Environmental and O_2
Casualty, Environmental and Other Reserves (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Casualty, Environmental and Other Reserves [Abstract] | |
Schedule of Casualty, Environmental and Other Reserves | Personal injury and environmental reserves are considered critical accounting estimates due to the need for significant management judgment. Casualty, environmental and other reserves are provided for in the consolidated balance sheets as shown in the table below. March 31, 2019 December 31, 2018 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 41 $ 100 $ 141 $ 40 $ 103 $ 143 Occupational 10 44 54 10 46 56 Total Casualty 51 144 195 50 149 199 Environmental 38 42 80 39 41 80 Other 23 21 44 24 21 45 Total $ 112 $ 207 $ 319 $ 113 $ 211 $ 324 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Information Company’s Operating Leases | The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of March 31, 2019. (Dollars in Millions) March 31, 2019 Maturity of Lease Liabilities Lease Payments 2019 (remaining) $ 41 2020 56 2021 49 2022 44 2023 38 Thereafter 1,241 Total undiscounted operating lease payments $ 1,469 Less: Imputed interest (914 ) Present value of operating lease liabilities $ 555 Balance Sheet Classification Current lease liabilities (recorded in other current liabilities) $ 53 Long-term lease liabilities 502 Total operating lease liabilities $ 555 Other Information Weighted-average remaining lease term for operating leases 33 years Weighted-average discount rate for operating leases 5.0 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Expense/(Income) Related to Net Benefit Expense | Pension Benefits (Dollars in millions) First Quarters 2019 2018 Service Cost Included in Labor and Fringe $ 8 $ 9 Interest Cost 26 23 Expected Return on Plan Assets (43 ) (44 ) Amortization of Net Loss 7 10 Total Income Included in Other Income - Net (10 ) (11 ) Net Periodic Benefit Credit $ (2 ) $ (2 ) Other Post-retirement Benefits (Dollars in millions) First Quarters 2019 2018 Service Cost Included in Labor and Fringe $ — $ — Interest Cost 1 2 Amortization of Prior Service Costs (2 ) — Total (Income) Expense Included in Other Income - Net (1 ) 2 Net Periodic Benefit (Credit) Cost $ (1 ) $ 2 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Activity Related to Long-Term Debt | Total activity related to long-term debt as of the end of first quarter 2019 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 11, Fair Value Measurements. (Dollars in millions) Current Portion Long-term Portion Total Long-term debt as of December 31, 2018 $ 18 $ 14,739 $ 14,757 2019 activity: Long-term debt issued — 1,000 1,000 Discount, premium and other activity — 9 9 Long-term debt as of March 31, 2019 $ 18 $ 15,748 $ 15,766 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Lines of Business | The following table presents the Company’s revenues disaggregated by lines of business as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors: First Quarters (Dollars in millions) 2019 2018 Chemicals $ 586 $ 557 Agricultural and Food Products 344 307 Automotive 311 304 Forest Products 216 195 Metals and Equipment 189 186 Minerals 123 114 Fertilizers 110 116 Total Merchandise 1,879 1,779 Coal 538 503 Intermodal 428 449 Other 168 145 Total $ 3,013 $ 2,876 |
Schedule of Accounts Receivable | The Company’s accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for doubtful accounts. (Dollars in millions) March 31, December 31, Freight Receivables $ 891 $ 846 Freight Allowance for Doubtful Accounts (17 ) (18 ) Freight Receivables, net 874 828 Non-Freight Receivables 241 190 Non-Freight Allowance for Doubtful Accounts (9 ) (8 ) Non-Freight Receivables, net 232 182 Total Accounts Receivable, net $ 1,106 $ 1,010 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Investment Assets | The Company's investment assets are carried at fair value on the consolidated balance sheets as summarized in the following table. All of the inputs used to determine the fair value of the Company's investments are Level 2 inputs. The amortized cost basis of these investments was $903 million and $340 million as of March 31, 2019 and December 31, 2018 , respectively. (Dollars in Millions) March 31, December 31, Certificates of Deposit and Commercial Paper $ 813 $ 250 Corporate Bonds 59 56 Government Securities 34 35 Total investments at fair value $ 906 $ 341 |
Schedule of Investment Maturities | These investments have the following maturities: (Dollars in millions) March 31, December 31, Less than 1 year $ 822 $ 253 1 - 5 years 8 14 5 - 10 years 24 26 Greater than 10 years 52 48 Total investments at fair value $ 906 $ 341 |
Schedule of Fair Value and Carrying Value of Long-Term Debt | The fair value and carrying value of the Company's long-term debt is as follows: (Dollars in millions) March 31, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 16,791 $ 14,914 Carrying Value 15,766 14,757 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in AOCI balance by Component | Changes in the AOCI balance by component are shown in the following table. Amounts reclassified in pension and other post-employment benefits to net earnings relate to the amortization of actuarial losses and are included in other income - net on the consolidated income statements. See Note 7, Employee Benefit Plans, for further information. Other primarily represents CSX's share of AOCI of equity method investees. Amounts reclassified in other to net earnings are included in equity earnings of affiliates on the consolidated income statements. Pension and Other Post-Employment Benefits Other Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Balance December 31, 2018, Net of Tax $ (604 ) $ (57 ) $ (661 ) Other Comprehensive Income (Loss) Loss Before Reclassifications — (2 ) (2 ) Amounts Reclassified to Net Earnings 6 — 6 Tax Expense (1 ) (1 ) (2 ) Total Other Comprehensive Income (Loss) 5 (3 ) 2 Balance March 31, 2019, Net of Tax $ (599 ) $ (60 ) $ (659 ) |
Summarized Consolidating Fina_2
Summarized Consolidating Financial Data (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Income Statements | Consolidating Income Statements (Dollars in millions) First Quarter 2019 CSX Corporation CSX Transportation Eliminations and Other Consolidated Revenue $ — $ 2,993 $ 20 $ 3,013 Expense (137 ) 1,968 (37 ) 1,794 Operating Income 137 1,025 57 1,219 Equity in Earnings of Subsidiaries 874 — (874 ) — Interest (Expense) / Benefit (216 ) (11 ) 49 (178 ) Other Income / (Expense) - Net 8 52 (37 ) 23 Earnings Before Income Taxes 803 1,066 (805 ) 1,064 Income Tax Benefit / (Expense) 31 (245 ) (16 ) (230 ) Net Earnings $ 834 $ 821 $ (821 ) $ 834 Total Comprehensive Earnings $ 836 $ 819 $ (819 ) $ 836 First Quarter 2018 CSX Corporation CSX Transportation Eliminations and Other Consolidated Revenue $ — $ 2,857 $ 19 $ 2,876 Expense (78 ) 1,943 (33 ) 1,832 Operating Income 78 914 52 1,044 Equity in Earnings of Subsidiaries 758 — (758 ) — Interest (Expense) / Benefit (164 ) (9 ) 24 (149 ) Other Income / (Expense) - Net 4 23 (10 ) 17 Earnings Before Income Taxes 676 928 (692 ) 912 Income Tax Benefit / (Expense) 19 (224 ) (12 ) (217 ) Net Earnings $ 695 $ 704 $ (704 ) $ 695 Total Comprehensive Earnings $ 596 $ 700 $ (700 ) $ 596 |
Consolidating Balance Sheet | Consolidating Balance Sheet (Dollars in millions) March 31, 2019 CSX Corporation CSX Transportation Eliminations and Other Consolidated ASSETS Current Assets Cash and Cash Equivalents $ 1,032 $ 143 $ 13 $ 1,188 Short-term Investments 813 — 9 822 Accounts Receivable - Net — 1,058 48 1,106 Receivable from Affiliates 1,022 5,498 (6,520 ) — Materials and Supplies — 241 — 241 Other Current Assets — 109 13 122 Total Current Assets 2,867 7,049 (6,437 ) 3,479 Properties 1 41,896 2,929 44,826 Accumulated Depreciation (1 ) (11,191 ) (1,646 ) (12,838 ) Properties - Net — 30,705 1,283 31,988 Investments in Conrail — — 948 948 Affiliates and Other Companies (39 ) 868 16 845 Investments in Consolidated Subsidiaries 32,656 — (32,656 ) — Right-of-Use Lease Asset — 528 22 550 Other Long-term Assets — 596 (252 ) 344 Total Assets $ 35,484 $ 39,746 $ (37,076 ) $ 38,154 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 202 $ 773 $ 44 $ 1,019 Labor and Fringe Benefits Payable 33 348 25 406 Payable to Affiliates 7,480 437 (7,917 ) — Casualty, Environmental and Other Reserves — 98 14 112 Current Maturities of Long-term Debt — 18 — 18 Income and Other Taxes Payable (275 ) 444 24 193 Other Current Liabilities 1 165 12 178 Total Current Liabilities 7,441 2,283 (7,798 ) 1,926 Casualty, Environmental and Other Reserves — 172 35 207 Long-term Debt 15,040 708 — 15,748 Deferred Income Taxes - Net (129 ) 6,645 227 6,743 Long-term Lease Liability — 487 15 502 Other Long-term Liabilities 704 213 (334 ) 583 Total Liabilities $ 23,056 $ 10,508 $ (7,855 ) $ 25,709 Shareholders' Equity Common Stock, $1 Par Value $ 809 $ 181 $ (181 ) $ 809 Other Capital 267 5,096 (5,096 ) 267 Retained Earnings 12,011 23,893 (23,893 ) 12,011 Accumulated Other Comprehensive Loss (659 ) 51 (51 ) (659 ) Noncontrolling Interest — 17 — 17 Total Shareholders' Equity $ 12,428 $ 29,238 $ (29,221 ) $ 12,445 Total Liabilities and Shareholders' Equity $ 35,484 $ 39,746 $ (37,076 ) $ 38,154 Consolidating Balance Sheet (Dollars in millions) December 31, 2018 CSX Corporation CSX Transportation Eliminations and Other Consolidated ASSETS Current Assets Cash and Cash Equivalents $ 716 $ 130 $ 12 $ 858 Short-term Investments 250 — 3 253 Accounts Receivable - Net 1 1,003 6 1,010 Receivable from Affiliates 1,020 5,214 (6,234 ) — Materials and Supplies — 263 — 263 Other Current Assets 63 104 14 181 Total Current Assets 2,050 6,714 (6,199 ) 2,565 Properties 1 41,897 2,907 44,805 Accumulated Depreciation (1 ) (11,194 ) (1,612 ) (12,807 ) Properties - Net — 30,703 1,295 31,998 Investments in Conrail — — 943 943 Affiliates and Other Companies (39 ) 859 16 836 Investment in Consolidated Subsidiaries 32,033 — (32,033 ) — Other Long-term Assets 2 598 (213 ) 387 Total Assets $ 34,046 $ 38,874 $ (36,191 ) $ 36,729 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable $ 132 $ 763 $ 54 $ 949 Labor and Fringe Benefits Payable 41 440 69 550 Payable to Affiliates 6,973 633 (7,606 ) — Casualty, Environmental and Other Reserves — 99 14 113 Current Maturities of Long-term Debt — 18 — 18 Income and Other Taxes Payable (290 ) 392 4 106 Other Current Liabilities 11 162 6 179 Total Current Liabilities 6,867 2,507 (7,459 ) 1,915 Casualty, Environmental and Other Reserves — 176 35 211 Long-term Debt 14,029 710 — 14,739 Deferred Income Taxes - Net (134 ) 6,601 223 6,690 Other Long-term Liabilities 721 211 (338 ) 594 Total Liabilities $ 21,483 $ 10,205 $ (7,539 ) $ 24,149 Shareholders' Equity Common Stock, $1 Par Value $ 818 $ 181 $ (181 ) $ 818 Other Capital 249 5,096 (5,096 ) 249 Retained Earnings 12,157 23,322 (23,322 ) 12,157 Accumulated Other Comprehensive Loss (661 ) 53 (53 ) (661 ) Noncontrolling Minority Interest — 17 — 17 Total Shareholders' Equity $ 12,563 $ 28,669 $ (28,652 ) $ 12,580 Total Liabilities and Shareholders' Equity $ 34,046 $ 38,874 $ (36,191 ) $ 36,729 |
Consolidating Cash Flow Statements | Consolidating Cash Flow Statements (Dollars in millions) Three Months 2019 CSX Corporation CSX Transportation Eliminations and Other Consolidated Operating Activities Net Cash Provided by (Used in) Operating Activities $ 852 $ 533 $ (212 ) $ 1,173 Investing Activities Property Additions — (319 ) (34 ) (353 ) Proceeds from Property Dispositions — 51 (3 ) 48 Purchases of Short-term Investments (813 ) — — (813 ) Proceeds from Sales of Short-term Investments 250 — — 250 Other Investing Activities (1 ) (1 ) — (2 ) Net Cash Provided by (Used in) Investing Activities (564 ) (269 ) (37 ) (870 ) Financing Activities Long-term Debt Issued 1,000 — — 1,000 Dividends Paid (195 ) (250 ) 250 (195 ) Shares Repurchased (796 ) — — (796 ) Other Financing Activities 19 (1 ) — 18 Net Cash Provided by (Used in) Financing Activities 28 (251 ) 250 27 Net Increase (Decrease) in Cash and Cash Equivalents 316 13 1 330 Cash and Cash Equivalents at Beginning of Period 716 130 12 858 Cash and Cash Equivalents at End of Period $ 1,032 $ 143 $ 13 $ 1,188 NOTE 13. Summarized Consolidating Financial Data, continued Consolidating Cash Flow Statements (Dollars in millions) Three Months 2018 CSX Corporation CSX Transportation Eliminations and Other Consolidated Operating Activities Net Cash Provided by (Used in) Operating Activities $ 691 $ 621 $ (346 ) $ 966 Investing Activities Property Additions — (339 ) (29 ) (368 ) Proceeds from Property Dispositions — 52 — 52 Proceeds from Sales of Short-term Investments — — 8 8 Other Investing Activities (1 ) (120 ) 113 (8 ) Net Cash (Used in) Provided by Investing Activities (1 ) (407 ) 92 (316 ) Financing Activities Long-term Debt Issued 2,000 — — 2,000 Dividends Paid (194 ) (250 ) 250 (194 ) Shares Repurchased (836 ) — — (836 ) Other Financing Activities (40 ) (4 ) 3 (41 ) Net Cash Provided by (Used in) Financing Activities 930 (254 ) 253 929 Net Increase (Decrease) in Cash and Cash Equivalents 1,620 (40 ) (1 ) 1,579 Cash and Cash Equivalents at Beginning of Period 274 121 6 401 Cash and Cash Equivalents at End of Period $ 1,894 $ 81 $ 5 $ 1,980 |
Nature of Operations and Sign_3
Nature of Operations and Significant Accounting Policies (Details) $ in Millions | Mar. 31, 2019USD ($)statemi | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Total number of rail route miles | mi | 20,500 | ||
Number of states rail network serves | state | 23 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-Use Lease Asset | $ 550 | $ 0 | |
Operating lease liability | $ 555 | ||
ASU Leases | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-Use Lease Asset | $ 534 | ||
Operating lease liability | $ 534 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic Earnings Per Share, Assuming Dilution (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net Earnings | $ 834 | $ 695 |
Denominator: | ||
Average Common Shares Outstanding (in shares) | 814 | 885 |
Other Potentially Dilutive Common Shares (in shares) | 3 | 3 |
Average Common Shares Outstanding, Assuming Dilution (in shares) | 817 | 888 |
Net Earnings Per Share, Basic (in dollars per share) | $ 1.02 | $ 0.78 |
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 1.02 | $ 0.78 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | Feb. 06, 2019 | Feb. 05, 2019 | Feb. 28, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 16, 2019 | Jan. 31, 2018 | Oct. 31, 2017 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Shares repurchased during the period value | $ 796,000,000 | $ 836,000,000 | ||||||
Shares repurchased during the period (in shares) | 12,000 | 15,000 | ||||||
Common stock quarterly dividend increase percentage | 9.00% | |||||||
Common stock dividends, per share (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.24 | $ 0.22 | ||||
January 2018 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Shares repurchased during the period (in shares) | 3,000 | |||||||
Accelerated share repurchase program (prepayment) settlement amount | $ 30,000,000 | $ (150,000,000) | ||||||
Initial share value received | $ 120,000,000 | |||||||
Share Repurchase Program October 2017 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Share repurchase program | $ 5,000,000,000 | $ 1,500,000,000 | ||||||
Share Repurchase Program January 2019 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Share repurchase program | $ 5,000,000,000 | |||||||
Stock Options | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded from diluted earnings per share calculation | 600 | 800 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | Feb. 06, 2019 | May 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of stock options on the date of grant (in dollars per share) | $ 17.45 | $ 14.62 | ||
LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted (in shares) | 843,000 | 950,000 | ||
Fair value of stock options on the date of grant (in dollars per share) | $ 17.45 | |||
LTIP | Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 300,000 | 350,000 | ||
Percentage of grants with performance vesting, operating ratio | 50.00% | |||
Percentage of grants with performance vesting, cumulative free cash flow | 50.00% | |||
Number of equivalent shares of CSX common stock per unit of award (in shares) | 1 | 1 | ||
LTIP | Performance Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout percentage range for participants | 0.00% | |||
LTIP | Performance Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout percentage range for participants | 200.00% | |||
LTIP | Performance Units | Certain Executive Officers | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of payout subject to downward adjustment (up to) | 25.00% | |||
LTIP | Performance Units | Certain Executive Officers | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout percentage range for participants | 225.00% | |||
LTIP | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of stock options (in years) | 10 years | |||
Award vesting period (in years) | 3 years | |||
LTIP | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 65,000 | 85,000 | ||
Number of equivalent shares of CSX common stock per unit of award (in shares) | 1 | |||
Award vesting period (in years) | 3 years | |||
ESPP | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock registered for ESPP (in shares) | 4,000,000 | |||
Minimum payroll deduction percentage | 1.00% | |||
Maximum payroll deduction percentage | 10.00% | |||
Maximum stock value available for purchase | $ 25,000 | |||
Percentage of shares market price | 85.00% | |||
Share offering period | 6 months | |||
Shares issued under the plan during the period (in shares) | 105,000 | |||
Weighted average purchase price of shares issued (in dollars per share) | $ 52.81 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation and Related Income Tax Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | $ 13 | $ 13 |
Income Tax Benefit | 28 | 8 |
Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 6 | 6 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 2 | 4 |
Restricted Stock Units and Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 2 | 1 |
Stock Awards for Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 2 | 2 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | $ 1 | $ 0 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Assumptions (Details) - Performance Units | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual dividend yield | 1.40% | 1.60% |
Risk-free interest rate | 2.50% | 2.30% |
Annualized volatility | 27.63% | 29.15% |
Expected life (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Assumptions for Stock Options (Details) - Employee Stock Option - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant-date fair value (in dollars per share) | $ 17.45 | $ 14.62 |
Stock options valuation assumptions: | ||
Annual dividend yield | 1.30% | 1.50% |
Risk-free interest rate | 2.60% | 2.60% |
Annualized volatility | 25.80% | 27.00% |
Expected life (in years) | 6 years | 6 years 6 months |
Other pricing model inputs: | ||
Weighted-average grant-date market price of CSX stock (in dollars per share) | $ 68.09 | $ 54.07 |
Casualty, Environmental and O_3
Casualty, Environmental and Other Reserves - Schedule of Casualty, Environmental and Other Reserves (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Current | $ 112 | $ 113 |
Long-term | 207 | 211 |
Total | 319 | 324 |
Total Casualty | ||
Loss Contingencies [Line Items] | ||
Current | 51 | 50 |
Long-term | 144 | 149 |
Total | 195 | 199 |
Personal Injury | ||
Loss Contingencies [Line Items] | ||
Current | 41 | 40 |
Long-term | 100 | 103 |
Total | 141 | 143 |
Occupational | ||
Loss Contingencies [Line Items] | ||
Current | 10 | 10 |
Long-term | 44 | 46 |
Total | 54 | 56 |
Environmental | ||
Loss Contingencies [Line Items] | ||
Current | 38 | 39 |
Long-term | 42 | 41 |
Total | 80 | 80 |
Other | ||
Loss Contingencies [Line Items] | ||
Current | 23 | 24 |
Long-term | 21 | 21 |
Total | $ 44 | $ 45 |
Casualty, Environmental and O_4
Casualty, Environmental and Other Reserves - Narrative (Details) | Jun. 01, 2018USD ($) | May 31, 2018USD ($) | Mar. 31, 2019USD ($)claimsite | Dec. 31, 2018USD ($) |
All Contingencies Reserves [Line Items] | ||||
Total reserves | $ 319,000,000 | $ 324,000,000 | ||
Casualty | ||||
All Contingencies Reserves [Line Items] | ||||
Total reserves | $ 195,000,000 | 199,000,000 | ||
Self-insured retention amount, per occurrence | $ 75,000,000 | $ 50,000,000 | ||
Number of individual claims expected to exceed self insured retention amount | claim | 0 | |||
Environmental | ||||
All Contingencies Reserves [Line Items] | ||||
Total reserves | $ 80,000,000 | 80,000,000 | ||
Environmental impaired sites | site | 226 | |||
Other | ||||
All Contingencies Reserves [Line Items] | ||||
Total reserves | $ 44,000,000 | $ 45,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Right-of-use asset recognized as non-cash asset addition | $ 534 | $ 30 |
Cash paid for amounts included in measurement of operating lease liabilities | 14 | |
Operating lease costs | $ 18 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of lease agreements (up to) | 50 years |
Leases - Schedule of Informatio
Leases - Schedule of Information About Company's Operating Leases (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Maturity of Lease Liabilities | ||
2019 (remaining) | $ 41 | |
2020 | 56 | |
2021 | 49 | |
2022 | 44 | |
2023 | 38 | |
Thereafter | 1,241 | |
Total undiscounted operating lease payments | 1,469 | |
Less: Imputed interest | (914) | |
Present value of operating lease liabilities | 555 | |
Balance Sheet Classification | ||
Current lease liabilities (recorded in other current liabilities) | 53 | |
Long-term lease liabilities | 502 | $ 0 |
Total operating lease liabilities | $ 555 | |
Other Information | ||
Weighted-average remaining lease term for operating leases | 33 years | |
Weighted-average discount rate for operating leases | 5.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 01, 2018USD ($) | May 31, 2018USD ($) | Mar. 31, 2016defendantmi | May 31, 2007entity | Mar. 31, 2019USD ($)claimmi |
Loss Contingencies [Line Items] | |||||
Casualty and catastrophic property deductible | $ 50,000,000 | ||||
Casualty and non catastrophic property deductible | $ 25,000,000 | ||||
Environmental | |||||
Loss Contingencies [Line Items] | |||||
Number of miles pertaining to Passaic River tidal reach required to be studied by EPA | mi | 17 | ||||
Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Claims with potential material impact (number of claims) | claim | 1 | ||||
Pending Litigation | Fuel Surcharge Antitrust Litigation | |||||
Loss Contingencies [Line Items] | |||||
Class action lawsuits filed against U.S.-based Class I railroads, excluding CSXT (number of entities) | entity | 3 | ||||
Pending Litigation | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Possible loss for certain legal proceedings | $ 4,000,000 | ||||
Pending Litigation | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Possible loss for certain legal proceedings | $ 102,000,000 | ||||
Settled Litigation | Environmental | |||||
Loss Contingencies [Line Items] | |||||
Number of miles subject to remediation | mi | 8 | ||||
Number of parties | defendant | 80 | ||||
Total Casualty | |||||
Loss Contingencies [Line Items] | |||||
Self-insured retention amount, per occurrence | $ 75,000,000 | $ 50,000,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Expense/(Income) Related to Net Benefit Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Components of expense/ (income) related to net benefit expense: | ||
Service Cost Included in Labor and Fringe | $ 8 | $ 9 |
Interest Cost | 26 | 23 |
Expected Return on Plan Assets | (43) | (44) |
Amortization of Net Loss | 7 | 10 |
Total (Income) Expense Included in Other Income - Net | (10) | (11) |
Net Periodic Benefit (Credit) Cost | (2) | (2) |
Other Post-retirement Benefits | ||
Components of expense/ (income) related to net benefit expense: | ||
Service Cost Included in Labor and Fringe | 0 | 0 |
Interest Cost | 1 | 2 |
Amortization of Prior Service Costs | (2) | 0 |
Total (Income) Expense Included in Other Income - Net | (1) | 2 |
Net Periodic Benefit (Credit) Cost | $ (1) | $ 2 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | Mar. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
Expected contributions to the Company's qualified pension plans | $ 0 |
Debt and Credit Agreements - Ac
Debt and Credit Agreements - Activity Related to Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement, Debt Instruments [Roll Forward] | ||
Beginning balance, current portion | $ 18 | |
Beginning balance, long-term portion | 14,739 | |
Beginning balance, total | 14,757 | |
Long-term debt issued | 1,000 | $ 2,000 |
Discount, premium and other activity | 9 | |
Ending balance, current portion | 18 | |
Ending balance, long-term portion | 15,748 | |
Ending balance, total | 15,766 | |
Current Portion | ||
Movement, Debt Instruments [Roll Forward] | ||
Beginning balance, current portion | 18 | |
Long-term debt issued | 0 | |
Discount, premium and other activity | 0 | |
Ending balance, current portion | 18 | |
Long-term Portion | ||
Movement, Debt Instruments [Roll Forward] | ||
Beginning balance, long-term portion | 14,739 | |
Long-term debt issued | 1,000 | |
Discount, premium and other activity | 9 | |
Ending balance, long-term portion | $ 15,748 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - USD ($) | Mar. 31, 2019 | Mar. 29, 2019 | Mar. 28, 2019 | Feb. 28, 2019 | Sep. 30, 2018 |
Commercial Paper | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity of credit facility | $ 1,000,000,000 | ||||
Borrowings outstanding | $ 0 | ||||
Notes due 2029 | |||||
Line of Credit Facility | |||||
Debt issued | $ 600,000,000 | ||||
Debt interest rate percentage | 4.25% | ||||
Notes due 2049 | |||||
Line of Credit Facility | |||||
Debt issued | $ 400,000,000 | ||||
Debt interest rate percentage | 4.50% | ||||
Unsecured Revolving Credit Facility | Credit Facility | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity of credit facility | $ 1,000,000,000 | ||||
Unsecured Revolving Credit Facility due 2024 | Credit Facility | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity of credit facility | $ 1,200,000,000 | ||||
Borrowings outstanding | $ 0 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Lines of Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,013 | $ 2,876 |
Total Merchandise | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,879 | 1,779 |
Chemicals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 586 | 557 |
Agricultural and Food Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 344 | 307 |
Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 311 | 304 |
Forest Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 216 | 195 |
Metals and Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 189 | 186 |
Minerals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 123 | 114 |
Fertilizers | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 110 | 116 |
Coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 538 | 503 |
Intermodal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 428 | 449 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 168 | $ 145 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract payment period | 15 days | |
Remaining performance obligations | $ 0 | |
Contract assets | 0 | |
Contract liability | 0 | |
Deferred contract costs | 0 | |
Impairment losses | $ 0 | $ 0 |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Transit time | 3 days | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Transit time | 8 days | |
Customer Concentration Risk | Sales Revenue | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of revenue from other services | 6.00% |
Revenues - Accounts Receivable
Revenues - Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accounts Receivable, net | $ 1,106 | $ 1,010 |
Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, gross | 891 | 846 |
Allowance for Doubtful Accounts | (17) | (18) |
Total Accounts Receivable, net | 874 | 828 |
Non-Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, gross | 241 | 190 |
Allowance for Doubtful Accounts | (9) | (8) |
Total Accounts Receivable, net | $ 232 | $ 182 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits increase (decrease) during period | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Investment Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amortized cost basis of investments | $ 903 | $ 340 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments at fair value | 906 | 341 |
Fair Value | Level 2 | Certificates of Deposit and Commercial Paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments at fair value | 813 | 250 |
Fair Value | Level 2 | Corporate Bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments at fair value | 59 | 56 |
Fair Value | Level 2 | Government Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments at fair value | $ 34 | $ 35 |
Fair Value Measurements - Inves
Fair Value Measurements - Investment Maturities (Details) - Fair Value - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Less than 1 year | $ 822 | $ 253 |
1 - 5 years | 8 | 14 |
5 - 10 years | 24 | 26 |
Greater than 10 years | 52 | 48 |
Total investments at fair value | $ 906 | $ 341 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value and Carrying Value of Long-Term Debt (Details) - Level 2 - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt (Including Current Maturities) | $ 16,791 | $ 14,914 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt (Including Current Maturities) | $ 15,766 | $ 14,757 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Total comprehensive earnings, net of tax | $ 836 | $ 596 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Changes in AOCI balance by Component (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Other Comprehensive Income (Loss) | |||
Loss Before Reclassifications | $ (2) | ||
Amounts Reclassified to Net Earnings | 6 | ||
Tax Expense | (2) | ||
Total Other Comprehensive Income (Loss) | 2 | $ (99) | |
Pension and Other Post-Employment Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (604) | ||
Other Comprehensive Income (Loss) | |||
Loss Before Reclassifications | 0 | ||
Amounts Reclassified to Net Earnings | 6 | ||
Tax Expense | (1) | ||
Total Other Comprehensive Income (Loss) | 5 | ||
Ending balance | (599) | ||
Other | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (57) | ||
Other Comprehensive Income (Loss) | |||
Loss Before Reclassifications | (2) | ||
Amounts Reclassified to Net Earnings | 0 | ||
Tax Expense | (1) | ||
Total Other Comprehensive Income (Loss) | (3) | ||
Ending balance | (60) | ||
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (661) | ||
Other Comprehensive Income (Loss) | |||
Total Other Comprehensive Income (Loss) | [1] | 2 | $ (99) |
Ending balance | $ (659) | ||
[1] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $179 million and $160 million |
Summarized Consolidating Fina_3
Summarized Consolidating Financial Data - Consolidating Income Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Income Statement | ||
Revenue | $ 3,013 | $ 2,876 |
Expense | 1,794 | 1,832 |
Operating Income | 1,219 | 1,044 |
Equity in Earnings of Subsidiaries | 0 | 0 |
Interest (Expense) / Benefit | (178) | (149) |
Other Income / (Expense) - Net | 23 | 17 |
Earnings Before Income Taxes | 1,064 | 912 |
Income Tax Benefit / (Expense) | (230) | (217) |
Net Earnings | 834 | 695 |
Total Comprehensive Earnings | 836 | 596 |
Eliminations and Other | ||
Consolidated Income Statement | ||
Revenue | 20 | 19 |
Expense | (37) | (33) |
Operating Income | 57 | 52 |
Equity in Earnings of Subsidiaries | (874) | (758) |
Interest (Expense) / Benefit | 49 | 24 |
Other Income / (Expense) - Net | (37) | (10) |
Earnings Before Income Taxes | (805) | (692) |
Income Tax Benefit / (Expense) | (16) | (12) |
Net Earnings | (821) | (704) |
Total Comprehensive Earnings | (819) | (700) |
CSX Corporation | ||
Consolidated Income Statement | ||
Revenue | 0 | 0 |
Expense | (137) | (78) |
Operating Income | 137 | 78 |
Equity in Earnings of Subsidiaries | 874 | 758 |
Interest (Expense) / Benefit | (216) | (164) |
Other Income / (Expense) - Net | 8 | 4 |
Earnings Before Income Taxes | 803 | 676 |
Income Tax Benefit / (Expense) | 31 | 19 |
Net Earnings | 834 | 695 |
Total Comprehensive Earnings | 836 | 596 |
CSX Transportation | ||
Consolidated Income Statement | ||
Revenue | 2,993 | 2,857 |
Expense | 1,968 | 1,943 |
Operating Income | 1,025 | 914 |
Equity in Earnings of Subsidiaries | 0 | 0 |
Interest (Expense) / Benefit | (11) | (9) |
Other Income / (Expense) - Net | 52 | 23 |
Earnings Before Income Taxes | 1,066 | 928 |
Income Tax Benefit / (Expense) | (245) | (224) |
Net Earnings | 821 | 704 |
Total Comprehensive Earnings | $ 819 | $ 700 |
Summarized Consolidating Fina_4
Summarized Consolidating Financial Data - Consolidating Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,188 | $ 858 | $ 1,980 | $ 401 |
Short-term Investments | 822 | 253 | ||
Accounts Receivable - Net | 1,106 | 1,010 | ||
Receivable from Affiliates | 0 | 0 | ||
Materials and Supplies | 241 | 263 | ||
Other Current Assets | 122 | 181 | ||
Total Current Assets | 3,479 | 2,565 | ||
Properties | 44,826 | 44,805 | ||
Accumulated Depreciation | (12,838) | (12,807) | ||
Properties - Net | 31,988 | 31,998 | ||
Right-of-Use Lease Asset | 550 | 0 | ||
Other Long-term Assets | 344 | 387 | ||
Total Assets | 38,154 | 36,729 | ||
Current Liabilities: | ||||
Accounts Payable | 1,019 | 949 | ||
Labor and Fringe Benefits Payable | 406 | 550 | ||
Payable to Affiliates | 0 | 0 | ||
Casualty, Environmental and Other Reserves | 112 | 113 | ||
Current Maturities of Long-term Debt | 18 | 18 | ||
Income and Other Taxes Payable | 193 | 106 | ||
Other Current Liabilities | 178 | 179 | ||
Total Current Liabilities | 1,926 | 1,915 | ||
Casualty, Environmental and Other Reserves | 207 | 211 | ||
Long-term Debt | 15,748 | 14,739 | ||
Deferred Income Taxes - Net | 6,743 | 6,690 | ||
Long-term lease liabilities | 502 | 0 | ||
Other Long-term Liabilities | 583 | 594 | ||
Total Liabilities | 25,709 | 24,149 | ||
Shareholders' Equity | ||||
Common Stock, $1 Par Value | 809 | 818 | ||
Other Capital | 267 | 249 | ||
Retained Earnings | 12,011 | 12,157 | ||
Accumulated Other Comprehensive Loss | (659) | (661) | ||
Noncontrolling Interest | 17 | 17 | ||
Total Shareholders' Equity | 12,445 | 12,580 | 14,391 | 14,721 |
Total Liabilities and Shareholders' Equity | $ 38,154 | $ 36,729 | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | ||
Investments in Conrail | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | $ 948 | $ 943 | ||
Affiliates and Other Companies | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 845 | 836 | ||
Investments in Consolidated Subsidiaries | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 0 | 0 | ||
Eliminations and Other | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 13 | 12 | 5 | 6 |
Short-term Investments | 9 | 3 | ||
Accounts Receivable - Net | 48 | 6 | ||
Receivable from Affiliates | (6,520) | (6,234) | ||
Materials and Supplies | 0 | 0 | ||
Other Current Assets | 13 | 14 | ||
Total Current Assets | (6,437) | (6,199) | ||
Properties | 2,929 | 2,907 | ||
Accumulated Depreciation | (1,646) | (1,612) | ||
Properties - Net | 1,283 | 1,295 | ||
Right-of-Use Lease Asset | 22 | |||
Other Long-term Assets | (252) | (213) | ||
Total Assets | (37,076) | (36,191) | ||
Current Liabilities: | ||||
Accounts Payable | 44 | 54 | ||
Labor and Fringe Benefits Payable | 25 | 69 | ||
Payable to Affiliates | (7,917) | (7,606) | ||
Casualty, Environmental and Other Reserves | 14 | 14 | ||
Current Maturities of Long-term Debt | 0 | 0 | ||
Income and Other Taxes Payable | 24 | 4 | ||
Other Current Liabilities | 12 | 6 | ||
Total Current Liabilities | (7,798) | (7,459) | ||
Casualty, Environmental and Other Reserves | 35 | 35 | ||
Long-term Debt | 0 | 0 | ||
Deferred Income Taxes - Net | 227 | 223 | ||
Long-term lease liabilities | 15 | |||
Other Long-term Liabilities | (334) | (338) | ||
Total Liabilities | (7,855) | (7,539) | ||
Shareholders' Equity | ||||
Common Stock, $1 Par Value | (181) | (181) | ||
Other Capital | (5,096) | (5,096) | ||
Retained Earnings | (23,893) | (23,322) | ||
Accumulated Other Comprehensive Loss | (51) | (53) | ||
Noncontrolling Interest | 0 | 0 | ||
Total Shareholders' Equity | (29,221) | (28,652) | ||
Total Liabilities and Shareholders' Equity | (37,076) | (36,191) | ||
Eliminations and Other | Investments in Conrail | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 948 | 943 | ||
Eliminations and Other | Affiliates and Other Companies | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 16 | 16 | ||
Eliminations and Other | Investments in Consolidated Subsidiaries | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | (32,656) | (32,033) | ||
CSX Corporation | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 1,032 | 716 | 1,894 | 274 |
CSX Corporation | Corporate, Non-Segment | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 1,032 | 716 | ||
Short-term Investments | 813 | 250 | ||
Accounts Receivable - Net | 0 | 1 | ||
Receivable from Affiliates | 1,022 | 1,020 | ||
Materials and Supplies | 0 | 0 | ||
Other Current Assets | 0 | 63 | ||
Total Current Assets | 2,867 | 2,050 | ||
Properties | 1 | 1 | ||
Accumulated Depreciation | (1) | (1) | ||
Properties - Net | 0 | 0 | ||
Right-of-Use Lease Asset | 0 | |||
Other Long-term Assets | 0 | 2 | ||
Total Assets | 35,484 | 34,046 | ||
Current Liabilities: | ||||
Accounts Payable | 202 | 132 | ||
Labor and Fringe Benefits Payable | 33 | 41 | ||
Payable to Affiliates | 7,480 | 6,973 | ||
Casualty, Environmental and Other Reserves | 0 | 0 | ||
Current Maturities of Long-term Debt | 0 | 0 | ||
Income and Other Taxes Payable | (275) | (290) | ||
Other Current Liabilities | 1 | 11 | ||
Total Current Liabilities | 7,441 | 6,867 | ||
Casualty, Environmental and Other Reserves | 0 | 0 | ||
Long-term Debt | 15,040 | 14,029 | ||
Deferred Income Taxes - Net | (129) | (134) | ||
Long-term lease liabilities | 0 | |||
Other Long-term Liabilities | 704 | 721 | ||
Total Liabilities | 23,056 | 21,483 | ||
Shareholders' Equity | ||||
Common Stock, $1 Par Value | 809 | 818 | ||
Other Capital | 267 | 249 | ||
Retained Earnings | 12,011 | 12,157 | ||
Accumulated Other Comprehensive Loss | (659) | (661) | ||
Noncontrolling Interest | 0 | 0 | ||
Total Shareholders' Equity | 12,428 | 12,563 | ||
Total Liabilities and Shareholders' Equity | 35,484 | 34,046 | ||
CSX Corporation | Corporate, Non-Segment | Investments in Conrail | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 0 | 0 | ||
CSX Corporation | Corporate, Non-Segment | Affiliates and Other Companies | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | (39) | (39) | ||
CSX Corporation | Corporate, Non-Segment | Investments in Consolidated Subsidiaries | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 32,656 | 32,033 | ||
CSX Transportation | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 143 | 130 | $ 81 | $ 121 |
Short-term Investments | 0 | 0 | ||
Accounts Receivable - Net | 1,058 | 1,003 | ||
Receivable from Affiliates | 5,498 | 5,214 | ||
Materials and Supplies | 241 | 263 | ||
Other Current Assets | 109 | 104 | ||
Total Current Assets | 7,049 | 6,714 | ||
Properties | 41,896 | 41,897 | ||
Accumulated Depreciation | (11,191) | (11,194) | ||
Properties - Net | 30,705 | 30,703 | ||
Right-of-Use Lease Asset | 528 | |||
Other Long-term Assets | 596 | 598 | ||
Total Assets | 39,746 | 38,874 | ||
Current Liabilities: | ||||
Accounts Payable | 773 | 763 | ||
Labor and Fringe Benefits Payable | 348 | 440 | ||
Payable to Affiliates | 437 | 633 | ||
Casualty, Environmental and Other Reserves | 98 | 99 | ||
Current Maturities of Long-term Debt | 18 | 18 | ||
Income and Other Taxes Payable | 444 | 392 | ||
Other Current Liabilities | 165 | 162 | ||
Total Current Liabilities | 2,283 | 2,507 | ||
Casualty, Environmental and Other Reserves | 172 | 176 | ||
Long-term Debt | 708 | 710 | ||
Deferred Income Taxes - Net | 6,645 | 6,601 | ||
Long-term lease liabilities | 487 | |||
Other Long-term Liabilities | 213 | 211 | ||
Total Liabilities | 10,508 | 10,205 | ||
Shareholders' Equity | ||||
Common Stock, $1 Par Value | 181 | 181 | ||
Other Capital | 5,096 | 5,096 | ||
Retained Earnings | 23,893 | 23,322 | ||
Accumulated Other Comprehensive Loss | 51 | 53 | ||
Noncontrolling Interest | 17 | 17 | ||
Total Shareholders' Equity | 29,238 | 28,669 | ||
Total Liabilities and Shareholders' Equity | 39,746 | 38,874 | ||
CSX Transportation | Investments in Conrail | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 0 | 0 | ||
CSX Transportation | Affiliates and Other Companies | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | 868 | 859 | ||
CSX Transportation | Investments in Consolidated Subsidiaries | ||||
Current Assets: | ||||
Investment in Affiliates and Other Companies | $ 0 | $ 0 |
Summarized Consolidating Fina_5
Summarized Consolidating Financial Data - Consolidating Cash Flow Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | $ 1,173 | $ 966 |
Investing Activities | ||
Property Additions | (353) | (368) |
Proceeds from Property Dispositions | 48 | 52 |
Purchase of Short-term Investments | (813) | 0 |
Proceeds from Sales of Short-term Investments | 250 | 8 |
Other Investing Activities | (2) | (8) |
Net Cash Used In Investing Activities | (870) | (316) |
Financing Activities | ||
Long-term Debt Issued | 1,000 | 2,000 |
Dividends Paid | (195) | (194) |
Shares Repurchased | (796) | (836) |
Other Financing Activities | 18 | (41) |
Net Cash Provided by Financing Activities | 27 | 929 |
Net Increase in Cash and Cash Equivalents | 330 | 1,579 |
Cash and Cash Equivalents at Beginning of Period | 858 | 401 |
Cash and Cash Equivalents at End of Period | 1,188 | 1,980 |
Eliminations and Other | ||
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | (212) | (346) |
Investing Activities | ||
Property Additions | (34) | (29) |
Proceeds from Property Dispositions | (3) | 0 |
Purchase of Short-term Investments | 0 | |
Proceeds from Sales of Short-term Investments | 0 | 8 |
Other Investing Activities | 0 | 113 |
Net Cash Used In Investing Activities | (37) | 92 |
Financing Activities | ||
Long-term Debt Issued | 0 | 0 |
Dividends Paid | 250 | 250 |
Shares Repurchased | 0 | 0 |
Other Financing Activities | 0 | 3 |
Net Cash Provided by Financing Activities | 250 | 253 |
Net Increase in Cash and Cash Equivalents | 1 | (1) |
Cash and Cash Equivalents at Beginning of Period | 12 | 6 |
Cash and Cash Equivalents at End of Period | 13 | 5 |
CSX Corporation | ||
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | 852 | 691 |
Investing Activities | ||
Property Additions | 0 | 0 |
Proceeds from Property Dispositions | 0 | 0 |
Purchase of Short-term Investments | (813) | |
Proceeds from Sales of Short-term Investments | 250 | 0 |
Other Investing Activities | (1) | (1) |
Net Cash Used In Investing Activities | (564) | (1) |
Financing Activities | ||
Long-term Debt Issued | 1,000 | 2,000 |
Dividends Paid | (195) | (194) |
Shares Repurchased | (796) | (836) |
Other Financing Activities | 19 | (40) |
Net Cash Provided by Financing Activities | 28 | 930 |
Net Increase in Cash and Cash Equivalents | 316 | 1,620 |
Cash and Cash Equivalents at Beginning of Period | 716 | 274 |
Cash and Cash Equivalents at End of Period | 1,032 | 1,894 |
CSX Transportation | ||
Operating Activities | ||
Net Cash Provided by (Used in) Operating Activities | 533 | 621 |
Investing Activities | ||
Property Additions | (319) | (339) |
Proceeds from Property Dispositions | 51 | 52 |
Purchase of Short-term Investments | 0 | |
Proceeds from Sales of Short-term Investments | 0 | 0 |
Other Investing Activities | (1) | (120) |
Net Cash Used In Investing Activities | (269) | (407) |
Financing Activities | ||
Long-term Debt Issued | 0 | 0 |
Dividends Paid | (250) | (250) |
Shares Repurchased | 0 | 0 |
Other Financing Activities | (1) | (4) |
Net Cash Provided by Financing Activities | (251) | (254) |
Net Increase in Cash and Cash Equivalents | 13 | (40) |
Cash and Cash Equivalents at Beginning of Period | 130 | 121 |
Cash and Cash Equivalents at End of Period | $ 143 | $ 81 |