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Earnings Per Share
 12 Months Ended
Dec. 30, 2011
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share

Effective May 31, 2011, CSX completed a three-for-one stock split. All shareholders of record received two additional shares of CSX common stock which were distributed on June 15, 2011. Pursuant to the Earnings Per Share Topic in the ASC, all share and per share disclosures have been retroactively restated to reflect the stock split.

The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution:
 
 
Fiscal Years
 
 
2011
 
2010
 
2009
Numerator (Dollars in Millions):
 
 
 
 
 
 
Earnings from Continuing Operations
 
$
1,822

 
$
1,563

 
$
1,128

Dividend Equivalents on Restricted Stock
 
1

 
—

 
—

Earnings from Continuing Operations, Attributable to Common Shareholders
 
$
1,823

 
$
1,563

 
$
1,128

 
 
 
 
 
 
 
Denominator (Units in Millions):
 
 
 
 
 
 
Average Common Shares Outstanding
 
1,083

 
1,143

 
1,176

Other Potentially Dilutive Common Shares (a)
 
6

 
11

 
11

Average Common Shares Outstanding, Assuming Dilution
 
1,089

 
1,154

 
1,187

 
 
 
 
 
 
 
Earnings Per Share, Continuing Operations, Basic
 
$
1.68

 
$
1.37

 
$
0.96

Earnings Per Share, Continuing Operations, Assuming Dilution
 
$
1.67

 
$
1.35

 
$
0.95

(a)
Other potentially dilutive common shares include convertible debt, stock options, common stock equivalents and performance units granted under a long-term management incentive compensation plan.

Basic earnings per share is based on the weighted-average number of shares of common stock outstanding.  Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock outstanding adjusted for the effects of common stock that may be issued as a result of the following types of potentially dilutive instruments:

•
convertible debt;
•
employee stock options; and
•
other equity awards, which include long-term incentive awards.

The Earnings Per Share Topic in the ASC requires CSX to include additional shares in the computation of earnings per share, assuming dilution.  The additional shares included in diluted earnings per share represent the number of shares that would be issued if all of the above potentially dilutive instruments were converted into CSX common stock.


NOTE 2.  Earnings Per Share, continued

When calculating diluted earnings per share, the Earnings Per Share Topic in the ASC requires CSX to include the potential shares that would be outstanding if all outstanding stock options were exercised.   This is offset by shares CSX could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent.  This number is different from outstanding stock options, which is included in Note 4, Stock Plans and Share-Based Compensation.  All stock options were dilutive for the periods presented; therefore, no stock options were excluded from the diluted earnings per share calculation.

Diluted shares outstanding are not impacted when debentures are converted into CSX common stock because those shares were already included in the diluted shares calculation.  Shares outstanding for basic earnings per share, however, are impacted on a weighted-average basis when conversions occur.  During 2011 and 2010, $6 million and $21 million, respectively, of face value convertible debentures were converted into approximately 675 thousand shares and 2.2 million shares of CSX common stock, respectively.  As of December 2011, approximately $4 million of convertible debentures at face value remained outstanding, which are convertible into 401 thousand shares of CSX common stock.