Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2020 |
Document Transition Report | false |
Entity File Number | 1-8022 |
Entity Registrant Name | CSX CORPORATION |
Entity Incorporation, State or Country Code | VA |
Entity Tax Identification Number | 62-1051971 |
Entity Address, Address Line One | 500 Water Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | Jacksonville |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32202 |
City Area Code | 904 |
Local Phone Number | 359-3200 |
Title of 12(b) Security | Common Stock, $1 Par Value |
Trading Symbol | CSX |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 765,052,549 |
Entity Central Index Key | 0000277948 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | [1] | Jun. 30, 2020 | Jun. 30, 2019 | [1] | |
Income Statement | ||||||
Revenue | $ 2,255 | $ 3,061 | $ 5,110 | $ 6,074 | ||
Expense | ||||||
Labor and Fringe | 507 | 648 | 1,113 | 1,320 | ||
Materials, Supplies and Other | 407 | 445 | 861 | 916 | ||
Depreciation | 344 | 337 | 688 | 667 | ||
Fuel | 91 | 234 | 283 | 467 | ||
Equipment and Other Rents | 78 | 92 | 159 | 180 | ||
Total Expense | 1,427 | 1,756 | 3,104 | 3,550 | ||
Operating Income | 828 | 1,305 | 2,006 | 2,524 | ||
Interest Expense | (191) | (184) | (378) | (362) | ||
Other Income - Net | 15 | 25 | 37 | 48 | ||
Earnings Before Income Taxes | 652 | 1,146 | 1,665 | 2,210 | ||
Income Tax Expense | (153) | (276) | (396) | (506) | ||
Net Earnings | $ 499 | $ 870 | $ 1,269 | $ 1,704 | ||
Per Common Share | ||||||
Net Earnings Per Share, Basic (in dollars per share) | $ 0.65 | $ 1.08 | $ 1.65 | $ 2.10 | ||
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 0.65 | $ 1.08 | $ 1.65 | $ 2.10 | ||
Average Shares Outstanding (in shares) | 766 | 805 | 769 | 810 | ||
Average Shares Outstanding, Assuming Dilution (in shares) | 767 | 807 | 770 | 812 | ||
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
CONDENSED CONSOLIDATED COMPREHE
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Statement of Comprehensive Income [Abstract] | ||||||||
Total Comprehensive Earnings (Note 11) | $ 519 | $ 773 | $ 874 | [1] | $ 836 | $ 1,292 | $ 1,710 | [1] |
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and Cash Equivalents | $ 2,391 | $ 958 |
Short-term Investments | 203 | 996 |
Accounts Receivable - Net (Note 8) | 860 | 986 |
Materials and Supplies | 246 | 261 |
Other Current Assets | 91 | 77 |
Total Current Assets | 3,791 | 3,278 |
Properties | 45,327 | 45,100 |
Accumulated Depreciation | (13,066) | (12,932) |
Properties - Net | 32,261 | 32,168 |
Right-of-Use Lease Asset | 512 | 532 |
Other Long-term Assets | 419 | 400 |
Total Assets | 38,904 | 38,257 |
Current Liabilities: | ||
Accounts Payable | 960 | 1,043 |
Labor and Fringe Benefits Payable | 352 | 489 |
Casualty, Environmental and Other Reserves (Note 4) | 103 | 100 |
Current Maturities of Long-term Debt (Note 7) | 378 | 245 |
Income and Other Taxes Payable | 380 | 69 |
Other Current Liabilities | 174 | 205 |
Total Current Liabilities | 2,347 | 2,151 |
Casualty, Environmental and Other Reserves (Note 4) | 203 | 205 |
Long-term Debt (Note 7) | 16,128 | 15,993 |
Deferred Income Taxes - Net | 7,028 | 6,961 |
Long-term Lease Liability | 481 | 493 |
Other Long-term Liabilities | 554 | 591 |
Total Liabilities | 26,741 | 26,394 |
Shareholders' Equity: | ||
Common Stock, $1 Par Value | 765 | 773 |
Other Capital | 361 | 346 |
Retained Earnings | 11,676 | 11,404 |
Accumulated Other Comprehensive Loss (Note 11) | (652) | (675) |
Noncontrolling Interest | 13 | 15 |
Total Shareholders' Equity | 12,163 | 11,863 |
Total Liabilities and Shareholders' Equity | 38,904 | 38,257 |
Investments in Conrail | ||
Current Assets: | ||
Investment in Affiliates and Other Companies | 1,001 | 982 |
Affiliates and Other Companies | ||
Current Assets: | ||
Investment in Affiliates and Other Companies | $ 920 | $ 897 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | [1] | |
OPERATING ACTIVITIES | |||
Net Earnings | $ 1,269 | $ 1,704 | |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | |||
Depreciation | 688 | 667 | |
Deferred Income Taxes | 61 | 97 | |
Gain on Property Dispositions | (29) | (64) | |
Other Operating Activities | (25) | (61) | |
Changes in Operating Assets and Liabilities: | |||
Accounts Receivable | 120 | (61) | |
Other Current Assets | (24) | 41 | |
Accounts Payable | (85) | 39 | |
Income and Other Taxes Payable | 338 | 89 | |
Other Current Liabilities | (129) | (184) | |
Net Cash Provided by (Used in) Operating Activities | 2,184 | 2,267 | |
INVESTING ACTIVITIES | |||
Property Additions | (801) | (769) | |
Proceeds from Property Dispositions | 45 | 146 | |
Purchases of Short-term Investments | (426) | (1,427) | |
Proceeds from Sales of Short-term Investments | 1,221 | 810 | |
Other Investing Activities | (42) | (16) | |
Net Cash Used In Investing Activities | (3) | (1,256) | |
FINANCING ACTIVITIES | |||
Long-term Debt Issued (Note 7) | 500 | 1,000 | |
Long-term Debt Repaid (Note 7) | (227) | 0 | |
Dividends Paid | (400) | (388) | |
Shares Repurchased | (616) | (1,656) | |
Other Financing Activities | (5) | 28 | |
Net Cash Used in Financing Activities | (748) | (1,016) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,433 | (5) | |
CASH AND CASH EQUIVALENTS | |||
Cash and Cash Equivalents at Beginning of Period | 958 | 858 | |
Cash and Cash Equivalents at End of Period | $ 2,391 | $ 853 | |
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Shares Outstanding | Common Stock and Other Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | |||
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 11) | 2 | 2 | [1] | ||||||
Total Comprehensive Earnings | 836 | ||||||||
Common stock dividends, per share | (195) | (195) | |||||||
Share Repurchases (in shares) | (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 | |||
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 | [2] | 1,704 | |||||||
Total Comprehensive Earnings | [2] | $ 1,710 | |||||||
Share Repurchases (in shares) | (23,000) | ||||||||
Common Shares Outstanding, Ending balance (in shares) at Jun. 30, 2019 | 798,176 | ||||||||
Shareholders' Equity, ending balance at Jun. 30, 2019 | $ 12,290 | 1,088 | 11,843 | (655) | [1] | 14 | |||
Comprehensive Earnings: | |||||||||
Associated tax of accumulated other comprehensive loss balances | 179 | ||||||||
Common Shares Outstanding, Beginning Balance (in shares) at Mar. 31, 2019 | 809,164 | ||||||||
Shareholders' Equity, beginning balance at Mar. 31, 2019 | 12,445 | 1,076 | 12,011 | (659) | [1] | 17 | |||
Comprehensive Earnings: | |||||||||
Net Earnings | 870 | [2] | 870 | ||||||
Other Comprehensive Income (Note 11) | 4 | 4 | [1] | ||||||
Total Comprehensive Earnings | [2] | 874 | |||||||
Common stock dividends, per share | $ (193) | (193) | |||||||
Share Repurchases (in shares) | (11,000) | (11,266) | |||||||
Share Repurchases | $ (860) | (11) | (849) | ||||||
Stock Option Exercises and Other (in shares) | 278 | ||||||||
Stock Option Exercises and Other | 24 | 23 | 4 | (3) | |||||
Common Shares Outstanding, Ending balance (in shares) at Jun. 30, 2019 | 798,176 | ||||||||
Shareholders' Equity, ending balance at Jun. 30, 2019 | 12,290 | 1,088 | 11,843 | (655) | [1] | 14 | |||
Comprehensive Earnings: | |||||||||
Associated tax of accumulated other comprehensive loss balances | 177 | ||||||||
Common Shares Outstanding, Beginning Balance (in shares) at Dec. 31, 2019 | 773,471 | ||||||||
Shareholders' Equity, beginning balance at Dec. 31, 2019 | 11,863 | 1,119 | 11,404 | (675) | [3] | 15 | |||
Comprehensive Earnings: | |||||||||
Net Earnings | 770 | 770 | |||||||
Other Comprehensive Income (Note 11) | 3 | 3 | [3] | ||||||
Total Comprehensive Earnings | 773 | ||||||||
Common stock dividends, per share | (201) | (201) | |||||||
Share Repurchases (in shares) | (8,906) | ||||||||
Share Repurchases | (577) | (9) | (568) | ||||||
Stock Option Exercises and Other (in shares) | 894 | ||||||||
Stock Option Exercises and Other | 30 | 21 | 7 | 2 | |||||
Common Shares Outstanding, Ending balance (in shares) at Mar. 31, 2020 | 765,459 | ||||||||
Shareholders' Equity, ending balance at Mar. 31, 2020 | 11,888 | 1,131 | 11,412 | (672) | [3] | 17 | |||
Common Shares Outstanding, Beginning Balance (in shares) at Dec. 31, 2019 | 773,471 | ||||||||
Shareholders' Equity, beginning balance at Dec. 31, 2019 | 11,863 | 1,119 | 11,404 | (675) | [3] | 15 | |||
Comprehensive Earnings: | |||||||||
Net Earnings | 1,269 | ||||||||
Other Comprehensive Income (Note 11) | 23 | ||||||||
Total Comprehensive Earnings | $ 1,292 | ||||||||
Share Repurchases (in shares) | (10,000) | ||||||||
Common Shares Outstanding, Ending balance (in shares) at Jun. 30, 2020 | 765,053 | ||||||||
Shareholders' Equity, ending balance at Jun. 30, 2020 | $ 12,163 | 1,126 | 11,676 | (652) | [3] | 13 | |||
Comprehensive Earnings: | |||||||||
Associated tax of accumulated other comprehensive loss balances | 183 | ||||||||
Common Shares Outstanding, Beginning Balance (in shares) at Mar. 31, 2020 | 765,459 | ||||||||
Shareholders' Equity, beginning balance at Mar. 31, 2020 | 11,888 | 1,131 | 11,412 | (672) | [3] | 17 | |||
Comprehensive Earnings: | |||||||||
Net Earnings | 499 | 499 | |||||||
Other Comprehensive Income (Note 11) | 20 | 20 | [3] | ||||||
Total Comprehensive Earnings | 519 | ||||||||
Common stock dividends, per share | $ (199) | (199) | |||||||
Share Repurchases (in shares) | (1,000) | (580) | |||||||
Share Repurchases | $ (39) | (1) | (38) | ||||||
Stock Option Exercises and Other (in shares) | 174 | ||||||||
Stock Option Exercises and Other | (6) | (4) | 2 | (4) | |||||
Common Shares Outstanding, Ending balance (in shares) at Jun. 30, 2020 | 765,053 | ||||||||
Shareholders' Equity, ending balance at Jun. 30, 2020 | $ 12,163 | $ 1,126 | $ 11,676 | (652) | [3] | $ 13 | |||
Comprehensive Earnings: | |||||||||
Associated tax of accumulated other comprehensive loss balances | $ 178 | ||||||||
[1] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $179 million and $177 million as of first and second quarters 2019, respectively. For additional information, see Note 11, Other Comprehensive Income. | ||||||||
[2] | Certain prior year data has been reclassified to conform to the current presentation. | ||||||||
[3] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $183 million and $178 million as of first and second quarters 2020, respectively. For additional information, see Note 11, Other Comprehensive Income. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.24 | $ 0.24 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
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 together with its subsidiaries ("CSX" or 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, the transport of intermodal containers and trailers, as well as other transportation services such as rail-to-truck transfers and bulk commodity operations. CSX's principal operating subsidiary, CSX Transportation, Inc. (“CSXT”), provides an important link to the transportation supply chain through its approximately 20,000 route mile rail network, which serves major population centers in 23 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec. 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. Substantially all of these activities are focused on supporting railroad operations. 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 includes 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 consolidated financial statements and accompanying notes. Where applicable, prior year information has been reclassified to conform to the current presentation. 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. Fiscal Year The Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to “second quarter(s)” or “six months” indicate CSX's fiscal periods ending June 30, 2020 and June 30, 2019, and references to "year-end" indicate the fiscal year ended December 31, 2019. NOTE 1. Nature of Operations and Significant Accounting Policies, continued New Accounting Pronouncements In June 2016, the FASB issued ASU Measurement of Credit Losses on Financial Instruments , which replaces current methods for evaluating impairment of financial instruments not measured at fair value, including trade accounts receivable and certain debt securities, with a current expected credit loss model. CSX adopted this new standard update effective January 1, 2020, and it did not have a material effect on the Company's results of operations. In August 2018, the FASB issued ASU Changes to the Disclosure Requirements for Defined Benefit Plans as part of its disclosure effectiveness initiative, which modifies the disclosure requirements for employer-sponsored defined benefit pension and other postretirement plans. This update is effective for the Company beginning January 1, 2021 and adoption of the standard is not expected to significantly impact the Company's disclosures. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
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: Second Quarters Six Months 2020 2019 2020 2019 Numerator (Dollars in millions) : Net Earnings $ 499 $ 870 $ 1,269 $ 1,704 Denominator (Units in millions) : Average Common Shares Outstanding 766 805 769 810 Other Potentially Dilutive Common Shares 1 2 1 2 Average Common Shares Outstanding, Assuming Dilution 767 807 770 812 Net Earnings Per Share, Basic $ 0.65 $ 1.08 $ 1.65 $ 2.10 Net Earnings Per Share, Assuming Dilution $ 0.65 $ 1.08 $ 1.65 $ 2.10 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. NOTE 2. Earnings Per Share, continued 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 2.4 million and 900 thousand of total average outstanding stock options for the quarters ended June 30, 2020 and June 30, 2019, respectively, and 1.8 million and 800 thousand for the six months ended June 30, 2020 and June 30, 2019, respectively, were excluded from the diluted earnings per share calculation because their effect was antidilutive. Share Repurchases In January 2019, the Company announced a $5 billion share repurchase program. At June 30, 2020, approximately $1.1 billion of authority remained under this program. During the second quarter and six months ended 2020 and 2019, the Company engaged in the following repurchase activities: Second Quarters Six Months 2020 2019 2020 2019 Shares Repurchased (Millions) 1 11 10 23 Cost of Shares (Dollars in millions) $ 39 $ 860 $ 616 $ 1,656 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 Accounting Standards Codification ("ASC"), the excess of repurchase price over par value is recorded in retained earnings. Dividend Increase In February 2020, the Company's Board of Directors authorized an 8% increase in the quarterly cash dividend to $0.26 per common share. |
Stock Plans and Share-Based Com
Stock Plans and Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans and Share-Based Compensation | Stock Plans and Share-Based Compensation Under CSX's share-based compensation plans, awards consist of performance units, stock options, restricted stock units and restricted stock awards for management and stock grants for directors. Awards granted under the various programs are determined and approved by the Compensation and Talent Management Committee of the Board of Directors or, in certain circumstances, by the full Board for awards to the Chief Executive Officer and 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 or upon grant date to certain retirement-eligible employees whose agreements allow for continued vesting upon retirement. Forfeitures are recognized as they occur. 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. The credit to share-based compensation expense for performance units in second quarter and six months ended 2020 is due to lower expected payouts on existing plans. Second Quarters Six Months (Dollars in millions) 2020 2019 2020 2019 Share-Based Compensation Expense: Performance Units $ (17) $ 9 (8) $ 15 Stock Options 3 5 13 7 Restricted Stock Units and Awards 1 2 3 4 Employee Stock Purchase Plan 1 1 2 2 Stock Awards for Directors — — 2 2 Total Share-Based Compensation (Benefit) Expense $ (12) $ 17 $ 12 $ 30 Income Tax Benefit $ 2 $ 7 $ 11 $ 35 NOTE 3. Stock Plans and Share-Based Compensation, continued Long-term Incentive Plan In February 2020, the Company granted 218 thousand performance units to certain employees under a new long-term incentive plan ("LTIP") for the years 2020 through 2022, which was adopted under the CSX 2019 Stock and Incentive Award Plan. Payouts of performance units for the cycle ending with fiscal year 2022 will be based on the achievement of goals related to both operating income and free cash flow, in each case excluding non-recurring items as disclosed in the Company's financial statements. The cumulative operating income and cumulative free cash flow measures 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 250%, based upon the Company's total shareholder return relative to specified comparable groups over the performance period. Participants will receive stock dividend equivalents declared over the performance period based on the number of performance units paid upon vesting. No grants were made during second quarters 2020 and 2019. The fair values of the performance units awarded during the six months ended 2020 and 2019 were primarily calculated using a Monte-Carlo simulation model with the following weighted-average assumptions: Six Months 2020 2019 Weighted-average assumptions used: Annual dividend yield N/A 1.4 % Risk-free interest rate 1.4 % 2.5 % Annualized volatility 24.5 % 27.6 % Expected life (in years) 2.9 2.9 Stock Options In February 2020, the Company granted approximately 1.3 million stock options along with the corresponding LTIP. The fair value of stock options on the date of grant was $18.88 per option, which was calculated using the Black-Scholes valuation model. These stock options were granted with ten NOTE 3. Stock Plans and Share-Based Compensation, continued The fair values of all stock option awards during the quarters and six months ended June 30, 2020 and June 30, 2019 were estimated at the grant date with the following weighted average assumptions: Second Quarters Six Months 2020 2019 2020 2019 Weighted-average grant-date fair value $ 17.77 $ 20.51 $ 18.87 $ 18.00 Stock options valuation assumptions: Annual dividend yield 1.5 % 1.2 % 1.2 % 1.3 % Risk-free interest rate 0.5 % 2.4 % 1.4 % 2.5 % Annualized volatility 30.1 % 25.4 % 26.0 % 25.7 % Expected life (in years) 6.5 6.5 6.0 6.1 Other pricing model inputs: Weighted-average grant-date market price of CSX stock (strike price) $ 70.87 $ 78.58 $ 79.48 $ 69.97 Restricted Stock Units In February 2020, the Company granted 91 thousand restricted stock units along with the corresponding LTIP. The restricted stock units vest three years after the date of grant. Participants will receive stock dividend equivalents on the vested shares upon vesting. These awards are time-based and are not based upon CSX's attainment of operational targets. Restricted stock units are paid-out in CSX common stock on a one-for-one basis. For information related to the Company's other outstanding long-term incentive compensation, see CSX's most recent annual report on Form 10-K. 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 market value CSX common stock per year at 85% of the closing market price on either the grant date or the last day of the six |
Casualty, Environmental and Oth
Casualty, Environmental and Other Reserves | 6 Months Ended |
Jun. 30, 2020 | |
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 management judgment. Casualty, environmental and other reserves are provided for in the consolidated balance sheets as shown in the table below. June 30, 2020 December 31, 2019 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 44 $ 83 $ 127 $ 42 $ 87 $ 129 Occupational 9 52 61 6 52 58 Total Casualty 53 135 188 48 139 187 Environmental 30 45 75 31 43 74 Other 20 23 43 21 23 44 Total $ 103 $ 203 $ 306 $ 100 $ 205 $ 305 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 $188 million and $187 million as of June 30, 2020 and December 31, 2019, respectively, represent accruals for personal injury, occupational disease and occupational injury claims. The Company's self-insured retention amount for these claims is $75 million per occurrence. 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. 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 did not result in a material adjustment to the personal injury reserve in the quarter ended June 30, 2020 or June 30, 2019. 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. NOTE 4. Casualty, Environmental and Other Reserves, continued Occupational Occupational reserves represent liabilities arising from allegations of exposure to certain materials in the workplace (such as solvents, soaps, chemicals and diesel fumes), past exposure to asbestos or allegations of chronic physical injuries resulting from work conditions (such as repetitive stress injuries). Beginning in second quarter 2020, the Company retains an independent actuary to analyze the Company’s historical claim filings, settlement amounts, and dismissal rates to assist in determining future anticipated claim filing rates and average settlement values. This analysis is performed by the actuary and reviewed by management quarterly. Previously, the quarterly analysis was performed by management. There were no material adjustments to the occupational reserve in the quarter ended June 30, 2020 or June 30, 2019. Environmental Environmental reserves were $75 million and $74 million as of June 30, 2020 and December 31, 2019, respectively. 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 220 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. 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. NOTE 4. Casualty, Environmental and Other Reserves, continued Based on management's review process, amounts have been recorded 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 were $43 million and $44 million as of June 30, 2020 and December 31, 2019, respectively. These reserves include liabilities for various claims, such as property, automobile and general liability. Also included in other reserves are longshoremen disability claims related to a previously owned international shipping business (these claims are in runoff) as well as claims for current port employees. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance The Company maintains insurance programs with substantial limits for property damage, including resulting business interruption, and third-party liability. A certain amount of risk is retained by the Company on each insurance program. In first quarter 2020, the Company restructured its property insurance program to increase the level at which the Company retains all risk from $50 million to $100 million per occurrence for losses from floods and named windstorms and from $25 million to $75 million per occurrence for other property losses. For third-party liability claims, the Company retains all risk up 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. NOTE 5. Commitments and Contingencies, continued 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 predicted with certainty, 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 $1 million to $43 million in aggregate at June 30, 2020. 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. The class action lawsuits were consolidated into one case in federal court in the District of Columbia. In 2017, the District Court issued its decision denying class certification. On August 16, 2019, the U.S. Court of Appeals for the D.C. Circuit affirmed the District Court’s ruling. The District Court had delayed proceedings on the merits of the consolidated case pending the outcome of the class certification proceedings. The consolidated case is now moving forward without class certification. Although a class was not certified, shippers other than those who brought the original lawsuit in 2007 can bring individual claims against one or more railroads. Individual shipper claims filed to date have been consolidated into a separate case. 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 these matters individually or when aggregated could have a material adverse effect on the Company's financial condition, results of operations or liquidity in that particular period. NOTE 5. Commitments and Contingencies, continued Environmental CSXT is indemnifying Pharmacia LLC, formerly known as Monsanto Company, ("Pharmacia") 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 the investigation and cleanup 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. Pharmacia’s share of responsibility, indemnified by CSXT, for the investigation and cleanup costs of the Study Area may be determined through various mechanisms including (a) an allocation and settlement with EPA; (b) litigation brought by EPA against non-settling parties; or (c) litigation among the responsible parties. 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. CSXT is also defending and indemnifying Pharmacia with regard to the Property in litigation filed by Occidental Chemical Corporation ("Occidental"), which is seeking to recover various costs. These costs include costs for the remedial design of the lower 8 miles of the Study Area, as well as anticipated costs associated with the future remediation of the lower 8 miles of the Study Area and potentially the entire Study Area. Alternatively, Occidental seeks to compel some, or all of the defendants to participate in the remediation of the Study Area. Pharmacia is one of approximately 110 defendants in this federal lawsuit filed by Occidental on June 30, 2018. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel. Beginning in 2020, the CSX Pension Plan is closed to new participants. 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. Beginning in 2019, both the life insurance benefit for eligible active employees and health savings account contributions made by the Company to eligible retirees younger than 65 were eliminated. Beginning in 2020, the employer-funded health reimbursement arrangements for eligible retirees 65 years or older have been eliminated. 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 Cost (Dollars in millions) Second Quarters Six Months 2020 2019 2020 2019 Service Cost Included in Labor and Fringe $ 10 $ 8 $ 20 $ 16 Interest Cost 21 26 41 52 Expected Return on Plan Assets (44) (43) (87) (86) Amortization of Net Loss 14 8 28 15 Total Included in Other Income - Net (9) (9) (18) (19) Net Periodic Benefit Cost/(Credit) $ 1 $ (1) $ 2 $ (3) Other Post-retirement Benefits Cost (Dollars in millions) Second Quarters Six Months 2020 2019 2020 2019 Service Cost Included in Labor and Fringe $ 1 $ 1 $ 1 $ 1 Interest Cost — 1 1 2 Amortization of Prior Service Costs (1) (1) (3) (3) Total Included in Other Income - Net (1) — (2) (1) Net Periodic Benefit Cost/(Credit) $ — $ 1 $ (1) $ — |
Debt and Credit Agreements
Debt and Credit Agreements | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Total activity related to long-term debt as of the end of second quarter 2020 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 10, Fair Value Measurements. (Dollars in millions) Current Portion Long-term Portion Total Long-term debt as of December 31, 2019 $ 245 $ 15,993 $ 16,238 2020 activity: Long-term debt issued — 500 500 Long-term debt repaid (227) — (227) Reclassifications 360 (360) — Discount, premium and other activity — (5) (5) Long-term debt as of June 30, 2020 $ 378 $ 16,128 $ 16,506 Debt Issuance On March 30, 2020, CSX issued $500 million of 3.8% notes due 2050. 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 debt repayments, repurchases of CSX’s common stock, capital investment, working capital requirements, improvements in productivity and other cost reductions. Interest Rate Derivatives On April 29, 2020, the Company executed a forward starting interest rate swap with an aggregate notional value of $250 million to hedge the benchmark interest rate associated with future interest payments related to the anticipated refinancing of $850 million of 3.25% notes due 2027. In accordance with the Derivatives and Hedging Topic in the ASC, the Company has designated this swap as a cash flow hedge. As of June 30, 2020, the asset value of the forward starting interest rate swap was $11 million and was recorded in other long-term assets on the consolidated balance sheet. Unrealized gains or losses associated with changes in the fair value of the hedge are recorded net of tax in accumulated other comprehensive income (“AOCI”) on the consolidated balance sheet. Unless settled early, the swap will expire in 2027 and the unrealized gain or loss in AOCI will be recognized in earnings as an adjustment to interest expense over the same period during which the hedged transaction affects earnings. Unrealized gains were $9 million net of tax during the quarter and six months ended June 30, 2020. Credit Facility CSX has a $1.2 billion unsecured, revolving credit facility backed by a diverse syndicate of banks. This 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 June 30, 2020, 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 second quarter 2020, CSX was in compliance with all covenant requirements under this facility. NOTE 7. Debt and Credit Agreements, continued Commercial Paper Under its commercial paper program, which is backed by the revolving credit facility, 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 June 30, 2020, the Company had no outstanding debt under the commercial paper program. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2020 | |
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 market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors: Second Quarters Six Months (Dollars in millions) 2020 2019 2020 2019 Chemicals (a) $ 531 $ 592 $ 1,157 $ 1,180 Agricultural and Food Products 311 358 676 702 Forest Products (a) 194 218 411 430 Metals and Equipment (a) 142 188 341 377 Minerals (a) 134 147 261 272 Fertilizers 103 112 215 222 Automotive 93 329 374 640 Total Merchandise 1,508 1,944 3,435 3,823 Coal 287 557 692 1,095 Intermodal 359 436 781 864 Other 101 124 202 292 Total $ 2,255 $ 3,061 $ 5,110 $ 6,074 (a) In first quarter 2020, changes were made in the categorization of certain lines of business, impacting Chemicals, Forest Products, Metals and Equipment, and Minerals. The impacts were not material and prior periods have been reclassified to conform to the current presentation. 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. NOTE 8. Revenues, continued The average transit time to complete a shipment is between 3 to 8 days depending on market. 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. 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 accounts for an immaterial percentage of the Company's total revenue. 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 represents charges assessed when a railroad switches cars for a customer or another railroad. During the second quarters and six months ended 2020 and 2019, 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 June 30, 2020, remaining performance obligations were not material. 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. Contract assets, contract liabilities and deferred contract costs recorded on the consolidated balance sheet as of June 30, 2020, were not material. NOTE 8. Revenues, continued The Company’s accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for credit losses. (Dollars in millions) June 30, December 31, Freight Receivables $ 644 $ 790 Freight Allowance for Credit Losses (17) (21) Freight Receivables, net 627 769 Non-Freight Receivables 244 226 Non-Freight Allowance for Credit Losses (11) (9) Non-Freight Receivables, net 233 217 Total Accounts Receivable, net $ 860 $ 986 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 credit losses to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of risk characteristics, historical payment experience, and the age of outstanding receivables adjusted for forward-looking economic conditions as necessary. Credit losses recognized on the Company’s accounts receivable were not material in the second quarters or six months ended 2020 and 2019. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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, long-term debt and interest rate derivatives. 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, long-term debt and interest rate derivatives. 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. • Commercial Paper and Certificates of Deposit (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. NOTE 10. Fair Value Measurements, continued 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. (Dollars in Millions) June 30, December 31, Commercial Paper and Certificates of Deposit $ 202 $ 989 Corporate Bonds 67 59 Government Securities 35 36 Total investments at fair value $ 304 $ 1,084 Total investments at amortized cost $ 294 $ 1,076 These investments have the following maturities: (Dollars in millions) June 30, December 31, Less than 1 year $ 203 $ 996 1 - 5 years 11 10 5 - 10 years 37 25 Greater than 10 years 53 53 Total investments at fair value $ 304 $ 1,084 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 a third party that utilizes closing transactions, market quotes or market values of comparable debt. For those instruments not valued by the third party, 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 third party. 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. It does not impact the financial statements under current accounting rules. The fair value and carrying value of the Company's long-term debt is as follows: (Dollars in millions) June 30, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 20,733 $ 18,503 Carrying Value 16,506 16,238 NOTE 10. Fair Value Measurements, continued Interest Rate Derivatives The Company’s forward starting interest rate swap is carried at fair value and is valued with assistance from a third party based upon pricing models using inputs observed from actively quoted markets. All of the inputs used to determine the fair value of the swap are Level 2 inputs. The fair value of the Company’s forward starting interest rate swap asset was $11 million at June 30, 2020. See Note 7, Debt and Credit Agreements for further information. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
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 as well as other adjustments. Total comprehensive earnings represent the activity for a period net of tax and were $519 million and $874 million for second quarters 2020 and 2019 and $1.3 billion and $1.7 billion for the six months 2020 and 2019, 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, interest rate derivatives 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 6, Employee Benefit Plans, for further information. Interest rate derivatives consist of forward starting interest rate swaps classified as cash flow hedges. See Note 7, Debt and Credit Agreements 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 materials, supplies and other or equipment and other rents on the consolidated income statements. Pension and Other Post-Employment Benefits Interest Rate Derivatives Other Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Balance December 31, 2019, Net of Tax $ (619) $ — $ (56) $ (675) Other Comprehensive Income (Loss) Income (Loss) Before Reclassifications — 11 (8) 3 Amounts Reclassified to Net Earnings 28 — — 28 Tax Expense (6) (2) — (8) Total Other Comprehensive Income (Loss) 22 9 (8) 23 Balance June 30, 2020, Net of Tax $ (597) $ 9 $ (64) $ (652) |
Nature of Operations and Sign_2
Nature of Operations and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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 consolidated financial statements and accompanying notes. Where applicable, prior year information has been reclassified to conform to the current presentation. 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. |
Fiscal Year | The Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to “second quarter(s)” or “six months” indicate CSX's fiscal periods ending June 30, 2020 and June 30, 2019, and references to "year-end" indicate the fiscal year ended December 31, 2019. |
New Accounting Pronouncements | In June 2016, the FASB issued ASU Measurement of Credit Losses on Financial Instruments , which replaces current methods for evaluating impairment of financial instruments not measured at fair value, including trade accounts receivable and certain debt securities, with a current expected credit loss model. CSX adopted this new standard update effective January 1, 2020, and it did not have a material effect on the Company's results of operations. In August 2018, the FASB issued ASU Changes to the Disclosure Requirements for Defined Benefit Plans as part of its disclosure effectiveness initiative, which modifies the disclosure requirements for employer-sponsored defined benefit pension and other postretirement plans. This update is effective for the Company beginning January 1, 2021 and adoption of the standard is not expected to significantly impact the Company's disclosures. |
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. NOTE 8. Revenues, continued The average transit time to complete a shipment is between 3 to 8 days depending on market. 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. 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 accounts for an immaterial percentage of the Company's total revenue. 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 represents charges assessed when a railroad switches cars for a customer or another railroad. During the second quarters and six months ended 2020 and 2019, revenue recognized from performance obligations related to prior periods (for example, due to changes in transaction price), was not material. Remaining performance obligations represent the transaction price allocated to future reporting periods for freight services started but not completed at the reporting date . 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 credit losses to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of risk characteristics, historical payment experience, and the age of outstanding receivables adjusted for forward-looking economic conditions as necessary. |
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, long-term debt and interest rate derivatives. 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, long-term debt and interest rate derivatives. 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. • Commercial Paper and Certificates of Deposit (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. 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 a third party that utilizes closing transactions, market quotes or market values of comparable debt. For those instruments not valued by the third party, 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 third party. All of the inputs used to determine the fair value of the Company's long-term debt are Level 2 inputs. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: Second Quarters Six Months 2020 2019 2020 2019 Numerator (Dollars in millions) : Net Earnings $ 499 $ 870 $ 1,269 $ 1,704 Denominator (Units in millions) : Average Common Shares Outstanding 766 805 769 810 Other Potentially Dilutive Common Shares 1 2 1 2 Average Common Shares Outstanding, Assuming Dilution 767 807 770 812 Net Earnings Per Share, Basic $ 0.65 $ 1.08 $ 1.65 $ 2.10 Net Earnings Per Share, Assuming Dilution $ 0.65 $ 1.08 $ 1.65 $ 2.10 |
Schedule of Share Repurchased by the Company | During the second quarter and six months ended 2020 and 2019, the Company engaged in the following repurchase activities: Second Quarters Six Months 2020 2019 2020 2019 Shares Repurchased (Millions) 1 11 10 23 Cost of Shares (Dollars in millions) $ 39 $ 860 $ 616 $ 1,656 |
Stock Plans and Share-Based C_2
Stock Plans and Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation (Benefit) Expense 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. The credit to share-based compensation expense for performance units in second quarter and six months ended 2020 is due to lower expected payouts on existing plans. Second Quarters Six Months (Dollars in millions) 2020 2019 2020 2019 Share-Based Compensation Expense: Performance Units $ (17) $ 9 (8) $ 15 Stock Options 3 5 13 7 Restricted Stock Units and Awards 1 2 3 4 Employee Stock Purchase Plan 1 1 2 2 Stock Awards for Directors — — 2 2 Total Share-Based Compensation (Benefit) Expense $ (12) $ 17 $ 12 $ 30 Income Tax Benefit $ 2 $ 7 $ 11 $ 35 |
Schedule of Weighted Average Assumptions | The fair values of the performance units awarded during the six months ended 2020 and 2019 were primarily calculated using a Monte-Carlo simulation model with the following weighted-average assumptions: Six Months 2020 2019 Weighted-average assumptions used: Annual dividend yield N/A 1.4 % Risk-free interest rate 1.4 % 2.5 % Annualized volatility 24.5 % 27.6 % 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 the quarters and six months ended June 30, 2020 and June 30, 2019 were estimated at the grant date with the following weighted average assumptions: Second Quarters Six Months 2020 2019 2020 2019 Weighted-average grant-date fair value $ 17.77 $ 20.51 $ 18.87 $ 18.00 Stock options valuation assumptions: Annual dividend yield 1.5 % 1.2 % 1.2 % 1.3 % Risk-free interest rate 0.5 % 2.4 % 1.4 % 2.5 % Annualized volatility 30.1 % 25.4 % 26.0 % 25.7 % Expected life (in years) 6.5 6.5 6.0 6.1 Other pricing model inputs: Weighted-average grant-date market price of CSX stock (strike price) $ 70.87 $ 78.58 $ 79.48 $ 69.97 |
Casualty, Environmental and O_2
Casualty, Environmental and Other Reserves (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Casualty, Environmental and Other Reserves [Abstract] | |
Schedule of Casualty, Environmental and Other Reserves | Casualty, environmental and other reserves are provided for in the consolidated balance sheets as shown in the table below. June 30, 2020 December 31, 2019 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 44 $ 83 $ 127 $ 42 $ 87 $ 129 Occupational 9 52 61 6 52 58 Total Casualty 53 135 188 48 139 187 Environmental 30 45 75 31 43 74 Other 20 23 43 21 23 44 Total $ 103 $ 203 $ 306 $ 100 $ 205 $ 305 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Expense/(Income) Related to Net Benefit Expense | Pension Benefits Cost (Dollars in millions) Second Quarters Six Months 2020 2019 2020 2019 Service Cost Included in Labor and Fringe $ 10 $ 8 $ 20 $ 16 Interest Cost 21 26 41 52 Expected Return on Plan Assets (44) (43) (87) (86) Amortization of Net Loss 14 8 28 15 Total Included in Other Income - Net (9) (9) (18) (19) Net Periodic Benefit Cost/(Credit) $ 1 $ (1) $ 2 $ (3) Other Post-retirement Benefits Cost (Dollars in millions) Second Quarters Six Months 2020 2019 2020 2019 Service Cost Included in Labor and Fringe $ 1 $ 1 $ 1 $ 1 Interest Cost — 1 1 2 Amortization of Prior Service Costs (1) (1) (3) (3) Total Included in Other Income - Net (1) — (2) (1) Net Periodic Benefit Cost/(Credit) $ — $ 1 $ (1) $ — |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Activity Related to Long-Term Debt | Total activity related to long-term debt as of the end of second quarter 2020 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 10, Fair Value Measurements. (Dollars in millions) Current Portion Long-term Portion Total Long-term debt as of December 31, 2019 $ 245 $ 15,993 $ 16,238 2020 activity: Long-term debt issued — 500 500 Long-term debt repaid (227) — (227) Reclassifications 360 (360) — Discount, premium and other activity — (5) (5) Long-term debt as of June 30, 2020 $ 378 $ 16,128 $ 16,506 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Lines of Business | The following table presents the Company’s revenues disaggregated by market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors: Second Quarters Six Months (Dollars in millions) 2020 2019 2020 2019 Chemicals (a) $ 531 $ 592 $ 1,157 $ 1,180 Agricultural and Food Products 311 358 676 702 Forest Products (a) 194 218 411 430 Metals and Equipment (a) 142 188 341 377 Minerals (a) 134 147 261 272 Fertilizers 103 112 215 222 Automotive 93 329 374 640 Total Merchandise 1,508 1,944 3,435 3,823 Coal 287 557 692 1,095 Intermodal 359 436 781 864 Other 101 124 202 292 Total $ 2,255 $ 3,061 $ 5,110 $ 6,074 |
Schedule of Accounts Receivable | The Company’s accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for credit losses. (Dollars in millions) June 30, December 31, Freight Receivables $ 644 $ 790 Freight Allowance for Credit Losses (17) (21) Freight Receivables, net 627 769 Non-Freight Receivables 244 226 Non-Freight Allowance for Credit Losses (11) (9) Non-Freight Receivables, net 233 217 Total Accounts Receivable, net $ 860 $ 986 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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. (Dollars in Millions) June 30, December 31, Commercial Paper and Certificates of Deposit $ 202 $ 989 Corporate Bonds 67 59 Government Securities 35 36 Total investments at fair value $ 304 $ 1,084 Total investments at amortized cost $ 294 $ 1,076 |
Schedule of Investment Maturities | These investments have the following maturities: (Dollars in millions) June 30, December 31, Less than 1 year $ 203 $ 996 1 - 5 years 11 10 5 - 10 years 37 25 Greater than 10 years 53 53 Total investments at fair value $ 304 $ 1,084 |
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) June 30, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 20,733 $ 18,503 Carrying Value 16,506 16,238 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 6, Employee Benefit Plans, for further information. Interest rate derivatives consist of forward starting interest rate swaps classified as cash flow hedges. See Note 7, Debt and Credit Agreements 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 materials, supplies and other or equipment and other rents on the consolidated income statements. Pension and Other Post-Employment Benefits Interest Rate Derivatives Other Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Balance December 31, 2019, Net of Tax $ (619) $ — $ (56) $ (675) Other Comprehensive Income (Loss) Income (Loss) Before Reclassifications — 11 (8) 3 Amounts Reclassified to Net Earnings 28 — — 28 Tax Expense (6) (2) — (8) Total Other Comprehensive Income (Loss) 22 9 (8) 23 Balance June 30, 2020, Net of Tax $ (597) $ 9 $ (64) $ (652) |
Nature of Operations and Sign_3
Nature of Operations and Significant Accounting Policies (Details) mi in Thousands | Jun. 30, 2020statemi |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Total number of rail route miles | mi | 20 |
Number of states rail network serves | state | 23 |
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 | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Numerator: | ||||||||
Net Earnings | $ 499 | $ 770 | $ 870 | [1] | $ 834 | $ 1,269 | $ 1,704 | [1] |
Denominator: | ||||||||
Average Common Shares Outstanding (in shares) | 766 | 805 | [1] | 769 | 810 | [1] | ||
Other Potentially Dilutive Common Shares (in shares) | 1 | 2 | 1 | 2 | ||||
Average Common Shares Outstanding, Assuming Dilution (in shares) | 767 | 807 | [1] | 770 | 812 | [1] | ||
Net Earnings Per Share, Basic (in dollars per share) | $ 0.65 | $ 1.08 | [1] | $ 1.65 | $ 2.10 | [1] | ||
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 0.65 | $ 1.08 | [1] | $ 1.65 | $ 2.10 | [1] | ||
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Increase in quarterly dividend percentage | 8.00% | |||||
Common stock dividends, per share (in dollars per share) | $ 0.26 | |||||
Share Repurchase Program January 2019 | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Share repurchase program authorized amount | $ 5,000,000,000 | |||||
Remaining authorized amount under share repurchase program | $ 1,100,000,000 | $ 1,100,000,000 | ||||
Stock Options | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from diluted earnings per share calculation (in shares) | 2,400 | 900 | 1,800 | 800 |
Earnings Per Share - Share Repu
Earnings Per Share - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Earnings Per Share [Abstract] | |||||
Shares repurchased (in shares) | 1 | 11 | 10 | 23 | |
Cost of shares | $ 39 | $ 860 | $ 616 | $ 1,656 | [1] |
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
Stock Plans and Share-Based C_3
Stock Plans and Share-Based Compensation - Share-Based Compensation (Benefit) Expense and Related Income Tax Benefit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation (Benefit) Expense | $ (12) | $ 17 | $ 12 | $ 30 |
Income Tax Benefit | 2 | 7 | 11 | 35 |
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation (Benefit) Expense | (17) | 9 | (8) | 15 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation (Benefit) Expense | 3 | 5 | 13 | 7 |
Restricted Stock Units and Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation (Benefit) Expense | 1 | 2 | 3 | 4 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation (Benefit) Expense | 1 | 1 | 2 | 2 |
Stock Awards for Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation (Benefit) Expense | $ 0 | $ 0 | $ 2 | $ 2 |
Stock Plans and Share-Based C_4
Stock Plans and Share-Based Compensation - Narrative (Details) - USD ($) | May 31, 2018 | Feb. 29, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
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) | $ 17.77 | $ 20.51 | $ 18.87 | $ 18 | ||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted (in shares) | 1,300,000 | |||||
Fair value of stock options on the date of grant (in dollars per share) | $ 18.88 | |||||
LTIP | Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
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 | |||||
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 Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 218,000 | |||||
LTIP | Performance Units | Certain Executive Officers | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 0 | 0 | ||||
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 | 250.00% | |||||
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) | 91,000 | |||||
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) | 122,000 | 105,000 | ||||
Weighted average purchase price of shares issued (in dollars per share) | $ 61.51 | $ 52.81 |
Stock Plans and Share-Based C_5
Stock Plans and Share-Based Compensation - Weighted Average Assumptions (Details) - Performance Units | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual dividend yield | 1.40% | |
Risk-free interest rate | 1.40% | 2.50% |
Annualized volatility | 24.50% | 27.60% |
Expected life (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days |
Stock Plans and Share-Based C_6
Stock Plans and Share-Based Compensation - Fair Value Assumptions for Stock Options (Details) - Stock Options - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair value (in dollars per share) | $ 17.77 | $ 20.51 | $ 18.87 | $ 18 |
Stock options valuation assumptions: | ||||
Annual dividend yield | 1.50% | 1.20% | 1.20% | 1.30% |
Risk-free interest rate | 0.50% | 2.40% | 1.40% | 2.50% |
Annualized volatility | 30.10% | 25.40% | 26.00% | 25.70% |
Expected life (in years) | 6 years 6 months | 6 years 6 months | 6 years | 6 years 1 month 6 days |
Other pricing model inputs: | ||||
Weighted-average grant-date market price of CSX stock (strike price) (in dollars per share) | $ 70.87 | $ 78.58 | $ 79.48 | $ 69.97 |
Casualty, Environmental and O_3
Casualty, Environmental and Other Reserves - Schedule of Casualty, Environmental and Other Reserves (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Current | $ 103 | $ 100 |
Long-term | 203 | 205 |
Total | 306 | 305 |
Total Casualty | ||
Loss Contingencies [Line Items] | ||
Current | 53 | 48 |
Long-term | 135 | 139 |
Total | 188 | 187 |
Personal Injury | ||
Loss Contingencies [Line Items] | ||
Current | 44 | 42 |
Long-term | 83 | 87 |
Total | 127 | 129 |
Occupational | ||
Loss Contingencies [Line Items] | ||
Current | 9 | 6 |
Long-term | 52 | 52 |
Total | 61 | 58 |
Environmental | ||
Loss Contingencies [Line Items] | ||
Current | 30 | 31 |
Long-term | 45 | 43 |
Total | 75 | 74 |
Other | ||
Loss Contingencies [Line Items] | ||
Current | 20 | 21 |
Long-term | 23 | 23 |
Total | $ 43 | $ 44 |
Casualty, Environmental and O_4
Casualty, Environmental and Other Reserves - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2020USD ($)claimsite | Dec. 31, 2019USD ($) | |
All Contingencies Reserves [Line Items] | ||
Total reserves | $ 306,000,000 | $ 305,000,000 |
Casualty | ||
All Contingencies Reserves [Line Items] | ||
Total reserves | 188,000,000 | 187,000,000 |
Self-insured retention amount, per occurrence | $ 75,000,000 | |
Number of individual claims expected to exceed self insured retention amount | claim | 0 | |
Environmental | ||
All Contingencies Reserves [Line Items] | ||
Total reserves | $ 75,000,000 | 74,000,000 |
Environmental impaired sites | site | 220 | |
Other | ||
All Contingencies Reserves [Line Items] | ||
Total reserves | $ 43,000,000 | $ 44,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 30, 2018defendant | Mar. 31, 2016partymi | May 31, 2007claimentity | Jun. 30, 2020USD ($)mi | Mar. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |||||
Casualty and catastrophic property deductible | $ 100,000,000 | $ 50,000,000 | |||
Casualty and non catastrophic property deductible | $ 75,000,000 | $ 25,000,000 | |||
Fuel Surcharge Antitrust Litigation | |||||
Loss Contingencies [Line Items] | |||||
Number of consolidated class action lawsuits | claim | 1 | ||||
Environmental | |||||
Loss Contingencies [Line Items] | |||||
Number of miles pertaining to Passaic River tidal reach required to be studied by EPA | mi | 17 | ||||
Number of parties participating in allocation process under study | party | 80 | ||||
Number of parties | defendant | 110 | ||||
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 | $ 1,000,000 | ||||
Pending Litigation | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Possible loss for certain legal proceedings | 43,000,000 | ||||
Settled Litigation | Environmental | |||||
Loss Contingencies [Line Items] | |||||
Number of miles subject to remediation | mi | 8 | ||||
Total Casualty | |||||
Loss Contingencies [Line Items] | |||||
Self-insured retention amount, per occurrence (up to) | $ 75,000,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) | Jan. 01, 2020 | Jan. 01, 2019 | Jun. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions to the Company's qualified pension plans | $ 0 | ||
Other Post-retirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Life insurance and contributions to the medical program for eligible retirees will be eliminated (younger than) | 65 years | ||
Life insurance and contributions to the medical program for eligible retirees will be eliminated (older than) | 65 years |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension Benefits Cost | ||||
Components of expense/ (income) related to net benefit expense: | ||||
Service Cost Included in Labor and Fringe | $ 10 | $ 8 | $ 20 | $ 16 |
Interest Cost | 21 | 26 | 41 | 52 |
Expected Return on Plan Assets | (44) | (43) | (87) | (86) |
Amortization of Net Loss | 14 | 8 | 28 | 15 |
Total Included in Other Income - Net | (9) | (9) | (18) | (19) |
Net Periodic Benefit Cost/(Credit) | 1 | (1) | 2 | (3) |
Other Post-retirement Benefits Cost | ||||
Components of expense/ (income) related to net benefit expense: | ||||
Service Cost Included in Labor and Fringe | 1 | 1 | 1 | 1 |
Interest Cost | 0 | 1 | 1 | 2 |
Amortization of Prior Service Costs | (1) | (1) | (3) | (3) |
Total Included in Other Income - Net | (1) | 0 | (2) | (1) |
Net Periodic Benefit Cost/(Credit) | $ 0 | $ 1 | $ (1) | $ 0 |
Debt and Credit Agreements - Ac
Debt and Credit Agreements - Activity Related to Long-Term Debt (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | [1] | |
Movement, Debt Instruments [Roll Forward] | |||
Long-term debt as of December 31, 2019, Current Portion | $ 245 | ||
Long-term debt as of December 31, 2019, Long-term Portion | 15,993 | ||
Long-term debt as of December 31, 2019, Total | 16,238 | ||
Long-term debt issued | 500 | $ 1,000 | |
Long-term debt repaid | (227) | $ 0 | |
Reclassifications | 0 | ||
Discount, premium and other activity | (5) | ||
Long-term debt as of June 30, 2020, Current Portion | 378 | ||
Long-term debt as of June 30, 2020, Long-term Portion | 16,128 | ||
Long-term debt as of June 30, 2020, Total | 16,506 | ||
Current Portion | |||
Movement, Debt Instruments [Roll Forward] | |||
Long-term debt as of December 31, 2019, Current Portion | 245 | ||
Long-term debt issued | 0 | ||
Long-term debt repaid | (227) | ||
Reclassifications | 360 | ||
Discount, premium and other activity | 0 | ||
Long-term debt as of June 30, 2020, Current Portion | 378 | ||
Long-term Portion | |||
Movement, Debt Instruments [Roll Forward] | |||
Long-term debt as of December 31, 2019, Long-term Portion | 15,993 | ||
Long-term debt issued | 500 | ||
Long-term debt repaid | 0 | ||
Reclassifications | (360) | ||
Discount, premium and other activity | (5) | ||
Long-term debt as of June 30, 2020, Long-term Portion | $ 16,128 | ||
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Apr. 29, 2020 | Mar. 30, 2020 | |
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedge | ||||
Line of Credit Facility | ||||
Asset value of the forward interest rate swap | $ 11,000,000 | $ 11,000,000 | $ 250,000,000 | |
Unrealized gains on forward interest rate swap | 9,000,000 | 9,000,000 | ||
Commercial Paper | ||||
Line of Credit Facility | ||||
Maximum borrowing capacity of credit facility | 1,000,000,000 | 1,000,000,000 | ||
Borrowings outstanding | 0 | 0 | ||
3.8% Notes Due 2050 | ||||
Line of Credit Facility | ||||
Debt issued | $ 500,000,000 | |||
Debt interest rate percentage | 3.80% | |||
3.25% Notes Due 2027 | ||||
Line of Credit Facility | ||||
Debt issued | $ 850,000,000 | |||
Debt interest rate percentage | 3.25% | |||
Unsecured Revolving Credit Facility | Credit Facility | ||||
Line of Credit Facility | ||||
Maximum borrowing capacity of credit facility | 1,200,000,000 | 1,200,000,000 | ||
Borrowings outstanding | $ 0 | $ 0 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Lines of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | $ 2,255 | $ 3,061 | [1] | $ 5,110 | $ 6,074 | [1] |
Total Merchandise | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 1,508 | 1,944 | 3,435 | 3,823 | ||
Chemicals | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 531 | 592 | 1,157 | 1,180 | ||
Agricultural and Food Products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 311 | 358 | 676 | 702 | ||
Forest Products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 194 | 218 | 411 | 430 | ||
Metals and Equipment | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 142 | 188 | 341 | 377 | ||
Minerals | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 134 | 147 | 261 | 272 | ||
Fertilizers | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 103 | 112 | 215 | 222 | ||
Automotive | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 93 | 329 | 374 | 640 | ||
Coal | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 287 | 557 | 692 | 1,095 | ||
Intermodal | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 359 | 436 | 781 | 864 | ||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | $ 101 | $ 124 | $ 202 | $ 292 | ||
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract payment period | 15 days |
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 |
Revenues - Accounts Receivable
Revenues - Accounts Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accounts Receivable, net | $ 860 | $ 986 |
Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade Accounts Receivable, gross | 644 | 790 |
Allowance for Doubtful Accounts | (17) | (21) |
Total Accounts Receivable, net | 627 | 769 |
Non-Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade Accounts Receivable, gross | 244 | 226 |
Allowance for Doubtful Accounts | (11) | (9) |
Total Accounts Receivable, net | $ 233 | $ 217 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Investment Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at amortized cost | $ 294 | $ 1,076 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | 304 | 1,084 |
Fair Value | Level 2 | Commercial Paper and Certificates of Deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | 202 | 989 |
Fair Value | Level 2 | Corporate Bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | 67 | 59 |
Fair Value | Level 2 | Government Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | $ 35 | $ 36 |
Fair Value Measurements - Inves
Fair Value Measurements - Investment Maturities (Details) - Fair Value - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Less than 1 year | $ 203 | $ 996 |
1 - 5 years | 11 | 10 |
5 - 10 years | 37 | 25 |
Greater than 10 years | 53 | 53 |
Total investments at fair value | $ 304 | $ 1,084 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value and Carrying Value of Long-Term Debt (Details) - Level 2 - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt (Including Current Maturities) | $ 20,733 | $ 18,503 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt (Including Current Maturities) | $ 16,506 | $ 16,238 |
Fair Value Measurements - Inter
Fair Value Measurements - Interest Rate Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Apr. 29, 2020 |
Interest Rate Swap | Cash Flow Hedge | Designated as Hedging Instrument | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Asset value of the forward interest rate swap | $ 11 | $ 250 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Equity [Abstract] | ||||||||
Total comprehensive earnings, net of tax | $ 519 | $ 773 | $ 874 | [1] | $ 836 | $ 1,292 | $ 1,710 | [1] |
[1] | Certain prior year data has been reclassified to conform to the current presentation. |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Changes in AOCI balance by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | |||||
Other Comprehensive Income (Loss) | |||||||||
Income (Loss) Before Reclassifications | $ 3 | ||||||||
Amounts Reclassified to Net Earnings | 28 | ||||||||
Tax Expense | (8) | ||||||||
Total Other Comprehensive Income (Loss) | $ 20 | $ 3 | $ 4 | $ 2 | 23 | ||||
Pension and Other Post-Employment Benefits | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Balance December 31, 2019, Net of Tax | (619) | (619) | |||||||
Other Comprehensive Income (Loss) | |||||||||
Income (Loss) Before Reclassifications | 0 | ||||||||
Amounts Reclassified to Net Earnings | 28 | ||||||||
Tax Expense | (6) | ||||||||
Total Other Comprehensive Income (Loss) | 22 | ||||||||
Balance June 30, 2020, Net of Tax | (597) | (597) | |||||||
Interest Rate Derivatives | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Balance December 31, 2019, Net of Tax | 0 | 0 | |||||||
Other Comprehensive Income (Loss) | |||||||||
Income (Loss) Before Reclassifications | 11 | ||||||||
Amounts Reclassified to Net Earnings | 0 | ||||||||
Tax Expense | (2) | ||||||||
Total Other Comprehensive Income (Loss) | 9 | ||||||||
Balance June 30, 2020, Net of Tax | 9 | 9 | |||||||
Other | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Balance December 31, 2019, Net of Tax | (56) | (56) | |||||||
Other Comprehensive Income (Loss) | |||||||||
Income (Loss) Before Reclassifications | (8) | ||||||||
Amounts Reclassified to Net Earnings | 0 | ||||||||
Tax Expense | 0 | ||||||||
Total Other Comprehensive Income (Loss) | (8) | ||||||||
Balance June 30, 2020, Net of Tax | (64) | (64) | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Balance December 31, 2019, Net of Tax | (675) | (675) | |||||||
Other Comprehensive Income (Loss) | |||||||||
Total Other Comprehensive Income (Loss) | 20 | [1] | $ 3 | [1] | $ 4 | [2] | $ 2 | [2] | |
Balance June 30, 2020, Net of Tax | $ (652) | $ (652) | |||||||
[1] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $183 million and $178 million as of first and second quarters 2020, respectively. For additional information, see Note 11, Other Comprehensive Income. | ||||||||
[2] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $179 million and $177 million as of first and second quarters 2019, respectively. For additional information, see Note 11, Other Comprehensive Income. |