Summarized Consolidating Financial Data

6 Months Ended

Jul. 01, 2011

Summarized Consolidating Financial Data [Abstract]

In 2007, CSXT sold secured equipment notes maturing in 2023 and in 2008, CSXT sold additional secured equipment notes maturing in 2014 in registered public offerings. CSX has fully and unconditionally guaranteed the notes. In connection with the notes, the Company is providing the following condensed consolidating financial information in accordance with SEC disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation and the allocation of certain expenses of CSX incurred for the benefit of its subsidiaries.

Condensed consolidating financial information for the obligor, CSXT, and parent guarantor, CSX, is as follows:



Consolidating Income Statements
(Dollars in millions)
Second Quarter 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	3,003		$	16		$	3,019
Expense	(67		)	2,222			(62		)	2,093
Operating Income	67			781			78			926

Equity in Earnings of Subsidiaries	540			2			(542		)	—
Interest (Expense) / Benefit	(121		)	(22		)	9			(134		)
Other Income - Net	4			—			(4		)	—

Earnings Before Income Taxes	490			761			(459		)	792
Income Tax (Expense) / Benefit	16			(275		)	(27		)	(286		)
Net Earnings	$	506		$	486		$	(486	)	$	506

Second Quarter 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,337		$	326		$	2,663
Expense	(46		)	1,672			269			1,895
Operating Income	46			665			57			768

Equity in Earnings of Subsidiaries	492			—			(492		)	—
Interest (Expense) / Benefit	(122		)	(27		)	14			(135		)
Other Income - Net	4			20			(15		)	9

Earnings Before Income Taxes	420			658			(436		)	642
Income Tax (Expense) / Benefit	(6		)	(236		)	14			(228		)
Net Earnings	$	414		$	422		$	(422	)	$	414



Consolidating Income Statements
(Dollars in millions)
Six Months Ended July 1, 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	5,797		$	32		$	5,829
Expense	(133		)	4,364			(101		)	4,130
Operating Income	133			1,433			133			1,699

Equity in Earnings of Subsidiaries	972			3			(975		)	—
Interest (Expense) / Benefit	(247		)	(45		)	18			(274		)
Other Income - Net	8			2			(5		)	5

Earnings Before Income Taxes	866			1,393			(829		)	1,430
Income Tax (Expense) / Benefit	35			(516		)	(48		)	(529		)
Net Earnings	$	901		$	877		$	(877	)	$	901

Six Months Ended June 25, 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	4,489		$	665		$	5,154
Expense	(83		)	3,279			558			3,754
Operating Income	83			1,210			107			1,400

Equity in Earnings of Subsidiaries	889			—			(889		)	—
Interest (Expense) / Benefit	(248		)	(55		)	26			(277		)
Other Income - Net	10			38			(28		)	20

Earnings Before Income Taxes	734			1,193			(784		)	1,143
Income Tax (Expense) / Benefit	(15		)	(445		)	36			(424		)
Net Earnings	$	719		$	748		$	(748	)	$	719



Consolidating Balance Sheet
(Dollars in millions)
As of July 1, 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated

ASSETS
Current Assets
Cash and Cash Equivalents	$	988		$	190		$	74		$	1,252
Short-term Investments	—			—			43			43
Accounts Receivable - Net	5			428			679			1,112
Receivable from Affiliates	1,158			1,443			(2,601		)	—
Materials and Supplies	—			251			—			251
Deferred Income Taxes	—			181			5			186
Other Current Assets	76			67			(20		)	123
Total Current Assets	2,227			2,560			(1,820		)	2,967

Properties	8			31,206			1,563			32,777
Accumulated Depreciation	(8		)	(7,683		)	(884		)	(8,575		)
Properties - Net	—			23,523			679			24,202

Investments in Conrail	—			—			681			681
Affiliates and Other Companies	—			558			(81		)	477
Investments in Consolidated Subsidiaries	16,926			—			(16,926		)	—
Other Long-term Assets	167			108			103			378
Total Assets	$	19,320		$	26,749		$	(17,364	)	$	28,705

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	107		$	938		$	31		$	1,076
Labor and Fringe Benefits Payable	34			373			23			430
Payable to Affiliates	2,251			568			(2,819		)	—
Casualty, Environmental and Other Reserves	—			165			15			180
Current Maturities of Long-term Debt	405			87			2			494
Income and Other Taxes Payable	465			126			(454		)	137
Other Current Liabilities	—			167			1			168
Total Current Liabilities	3,262			2,424			(3,201		)	2,485

Casualty, Environmental and Other Reserves	—			383			85			468
Long-term Debt	7,008			1,178			—			8,186
Deferred Income Taxes	(572		)	7,485			427			7,340
Other Long-term Liabilities	693			515			77			1,285
Total Liabilities	$	10,391		$	11,985		$	(2,612	)	$	19,764

Shareholders' Equity
Common Stock, $1 Par Value	1,095			181			(181		)	1,095
Other Capital	—			5,648			(5,648		)	—
Retained Earnings	8,582			8,980			(8,980		)	8,582
Accumulated Other Comprehensive Loss	(748		)	(64		)	65			(747		)
Noncontrolling Interest	—			19			(8		)	11
Total Shareholders' Equity	8,929			14,764			(14,752		)	8,941
Total Liabilities and Shareholders' Equity	$	19,320		$	26,749		$	(17,364	)	$	28,705



Consolidating Balance Sheet (Dollars in millions)
As of December 31, 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	1,100		$	118		$	74		$	1,292
Short-term Investments	—			—			54			54
Accounts Receivable - Net	5			447			541			993
Receivable from Affiliates	1,048			943			(1,991		)	—
Materials and Supplies	—			218			—			218
Deferred Income Taxes	15			171			6			192
Other Current Assets	46			56			4			106
Total Current Assets	2,214			1,953			(1,312		)	2,855

Properties	8			30,557			1,500			32,065
Accumulated Depreciation	(8		)	(7,405		)	(853		)	(8,266		)
Properties - Net	—			23,152			647			23,799

Investments in Conrail	—			—			673			673
Affiliates and Other Companies	—			595			(134		)	461
Investment in Consolidated Subsidiaries	16,278			—			(16,278		)	—
Other Long-term Assets	174			110			69			353
Total Assets	$	18,666		$	25,810		$	(16,335	)	$	28,141

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	116		$	904		$	26		$	1,046
Labor and Fringe Benefits Payable	42			431			47			520
Payable to Affiliates	1,942			401			(2,343		)	—
Casualty, Environmental and Other Reserves	—			161			15			176
Current Maturities of Long-term Debt	517			94			2			613
Income and Other Taxes Payable	378			109			(402		)	85
Other Current Liabilities	—			96			1			97
Total Current Liabilities	2,995			2,196			(2,654		)	2,537

Casualty, Environmental and Other Reserves	—			411			91			502
Long-term Debt	6,815			1,235			1			8,051
Deferred Income Taxes	(526		)	7,228			351			7,053
Other Long-term Liabilities	696			525			77			1,298
Total Liabilities	$	9,980		$	11,595		$	(2,134	)	$	19,441

Shareholders' Equity
Common Stock, $1 Par Value	370			181			(181		)	370
Other Capital	—			5,634			(5,634		)	—
Retained Earnings	9,087			8,443			(8,443		)	9,087
Accumulated Other Comprehensive Loss	(771		)	(65		)	65			(771		)
Noncontrolling Minority Interest	—			22			(8		)	14
Total Shareholders' Equity	8,686			14,215			(14,201		)	8,700
Total Liabilities and Shareholders' Equity	$	18,666		$	25,810		$	(16,335	)	$	28,141



Consolidating Cash Flow Statements
(Dollars in millions)
Six months ended July 1, 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	300		$	1,662		$	(375	)	$	1,587

Investing Activities
Property Additions	—			(866		)	(81		)	(947		)
Other Investing Activities	(16		)	(95		)	127			16
Net Cash Used in Investing Activities	(16		)	(961		)	46			(931		)

Financing Activities
Long-term Debt Issued	600			—			—			600
Long-term Debt Repaid	(507		)	(61		)	(2		)	(570		)
Dividends Paid	(233		)	(170		)	175			(228		)
Stock Options Exercised	24			—			—			24
Shares Repurchased	(528		)	—			—			(528		)
Other Financing Activities	248			(398		)	156			6
Net Cash (Used in) Provided by Financing Activities	(396		)	(629		)	329			(696		)

Net Decrease in Cash and Cash Equivalents	(112		)	72			—			(40		)
Cash and Cash Equivalents at Beginning of Period	1,100			118			74			1,292
Cash and Cash Equivalents at End of Period	$	988		$	190		$	74		$	1,252


Six months ended June 25, 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by Operating Activities	$	283		$	1,421		$	(282	)	$	1,422

Investing Activities
Property Additions	—			(648		)	(39		)	(687		)
Other Investing Activities	(4		)	(47		)	119			68
Net Cash Used in Investing Activities	(4		)	(695		)	80			(619		)

Financing Activities
Long-term Debt Repaid	—			(69		)	(2		)	(71		)
Dividends Paid	(188		)	(295		)	299			(184		)
Stock Options Exercised	16			—			—			16
Shares Repurchased	(823		)	—			—			(823		)
Other Financing Activities	233			(295		)	(75		)	(137		)
Net Cash (Used in) Provided by Financing Activities	(762		)	(659		)	222			(1,199		)

Net Increase (Decrease) in Cash and Cash Equivalents	(483		)	67			20			(396		)
Cash and Cash Equivalents at Beginning of Period	918			30			81			1,029
Cash and Cash Equivalents at End of Period	$	435		$	97		$	101		$	633