Summarized Consolidating Financial Data

3 Months Ended

Mar. 30, 2012

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)
First Quarter 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,950		$	16		$	2,966
Expense	(87		)	2,229			(32		)	2,110
Operating Income	87			721			48			856

Equity in Earnings of Subsidiaries	477			(1		)	(476		)	—
Interest (Expense) / Benefit	(130		)	(19		)	5			(144		)
Other Income - Net	(1		)	3			2			4

Earnings Before Income Taxes	433			704			(421		)	716
Income Tax (Expense) / Benefit	16			(263		)	(20		)	(267		)
Net Earnings	$	449		$	441		$	(441	)	$	449

Total Comprehensive Earnings	$	458		$	438		$	(438	)	$	458
First Quarter 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,794		$	16		$	2,810
Expense	(65		)	2,142			(40		)	2,037
Operating Income	65			652			56			773

Equity in Earnings of Subsidiaries	432			1			(433		)	—
Interest (Expense) / Benefit	(126		)	(23		)	9			(140		)
Other Income - Net	2			2			1			5

Earnings Before Income Taxes	373			632			(367		)	638
Income Tax (Expense) / Benefit	22			(241		)	(24		)	(243		)
Net Earnings	$	395		$	391		$	(391	)	$	395

Total Comprehensive Earnings	$	406		$	392		$	(392	)	$	406



Consolidating Balance Sheet
(Dollars in millions)
As of First Quarter 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated

ASSETS
Current Assets
Cash and Cash Equivalents	$	385		$	159		$	83		$	627
Short-term Investments	100			—			39			139
Accounts Receivable - Net	6			468			687			1,161
Receivable from Affiliates	1,365			1,936			(3,301		)	—
Materials and Supplies	—			251			—			251
Deferred Income Taxes	13			166			(1		)	178
Other Current Assets	15			97			—			112
Total Current Assets	1,884			3,077			(2,493		)	2,468

Properties	8			32,222			1,772			34,002
Accumulated Depreciation	(8		)	(7,901		)	(952		)	(8,861		)
Properties - Net	—			24,321			820			25,141

Investments in Conrail	—			—			683			683
Affiliates and Other Companies	(39		)	576			(42		)	495
Investments in Consolidated Subsidiaries	17,830			—			(17,830		)	—
Other Long-term Assets	176			290			(67		)	399
Total Assets	$	19,851		$	28,264		$	(18,929	)	$	29,186

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	156		$	1,019		$	30		$	1,205
Labor and Fringe Benefits Payable	37			335			20			392
Payable to Affiliates	2,705			703			(3,408		)	—
Casualty, Environmental and Other Reserves	—			152			16			168
Current Maturities of Long-term Debt	400			100			2			502
Income and Other Taxes Payable	(75		)	201			8			134
Other Current Liabilities	(1		)	191			2			192
Total Current Liabilities	3,222			2,701			(3,330		)	2,593

Casualty, Environmental and Other Reserves	—			266			71			337
Long-term Debt	7,508			1,115			—			8,623
Deferred Income Taxes	(149		)	7,884			64			7,799
Other Long-term Liabilities	779			632			(81		)	1,330
Total Liabilities	$	11,360		$	12,598		$	(3,276	)	$	20,682

Shareholders' Equity
Common Stock, $1 Par Value	1,039			181			(181		)	1,039
Other Capital	5			5,666			(5,666		)	5
Retained Earnings	8,313			9,880			(9,880		)	8,313
Accumulated Other Comprehensive Loss	(866		)	(82		)	82			(866		)
Noncontrolling Interest	—			21			(8		)	13
Total Shareholders' Equity	8,491			15,666			(15,653		)	8,504
Total Liabilities and Shareholders' Equity	$	19,851		$	28,264		$	(18,929	)	$	29,186



Consolidating Balance Sheet (Dollars in millions)
As of December 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	549		$	154		$	80		$	783
Short-term Investments	475			—			48			523
Accounts Receivable - Net	4			468			657			1,129
Receivable from Affiliates	1,025			1,772			(2,797		)	—
Materials and Supplies	—			240			—			240
Deferred Income Taxes	10			173			(1		)	182
Other Current Assets	17			64			(3		)	78
Total Current Assets	2,080			2,871			(2,016		)	2,935

Properties	8			31,958			1,738			33,704
Accumulated Depreciation	(8		)	(7,795		)	(927		)	(8,730		)
Properties - Net	—			24,163			811			24,974

Investments in Conrail	—			—			678			678
Affiliates and Other Companies	(39		)	574			(42		)	493
Investment in Consolidated Subsidiaries	17,519			—			(17,519		)	—
Other Long-term Assets	176			109			108			393
Total Assets	$	19,736		$	27,717		$	(17,980	)	$	29,473

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	114		$	978		$	55		$	1,147
Labor and Fringe Benefits Payable	41			458			42			541
Payable to Affiliates	2,566			374			(2,940		)	—
Casualty, Environmental and Other Reserves	—			151			16			167
Current Maturities of Long-term Debt	400			105			2			507
Income and Other Taxes Payable	(60		)	189			—			129
Other Current Liabilities	(1		)	194			3			196
Total Current Liabilities	3,060			2,449			(2,822		)	2,687

Casualty, Environmental and Other Reserves	—			284			68			352
Long-term Debt	7,609			1,124			1			8,734
Deferred Income Taxes	(246		)	7,800			47			7,601
Other Long-term Liabilities	858			667			106			1,631
Total Liabilities	$	11,281		$	12,324		$	(2,600	)	$	21,005

Shareholders' Equity
Common Stock, $1 Par Value	1,049			181			(181		)	1,049
Other Capital	6			5,652			(5,652		)	6
Retained Earnings	8,275			9,618			(9,618		)	8,275
Accumulated Other Comprehensive Loss	(875		)	(79		)	79			(875		)
Noncontrolling Minority Interest	—			21			(8		)	13
Total Shareholders' Equity	8,455			15,393			(15,380		)	8,468
Total Liabilities and Shareholders' Equity	$	19,736		$	27,717		$	(17,980	)	$	29,473



Consolidating Cash Flow Statements
(Dollars in millions)
First Quarter 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	(23	)	$	641		$	(174	)	$	444
Investing Activities
Property Additions	—			(435		)	(34		)	(469		)
Purchases of Short-term Investments	(50		)	—			(3		)	(53		)
Proceeds from Sales of Short-term Investments	425			—			12			437
Other Investing Activities	1			(13		)	20			8
Net Cash Provided by (Used in) Investing Activities	376			(448		)	(5		)	(77		)
Financing Activities
Long-term Debt Issued	300			—			—			300
Long-term Debt Repaid	(400		)	(13		)	—			(413		)
Dividends Paid	(125		)	(179		)	179			(125		)
Stock Options Exercised	8			—			—			8
Shares Repurchased	(300		)	—			—			(300		)
Other Financing Activities	—			4			3			7
Net Cash Provided by (Used in) Financing Activities	(517		)	(188		)	182			(523		)
Net Increase (Decrease) in Cash and Cash Equivalents	(164		)	5			3			(156		)
Cash and Cash Equivalents at Beginning of Period	549			154			80			783
Cash and Cash Equivalents at End of Period	$	385		$	159		$	83		$	627

NOTE 10. Summarized Consolidating Financial Data, continued



Consolidating Cash Flow Statements
(Dollars in millions)
First Quarter 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	196		$	541		$	(242	)	$	495
Investing Activities
Property Additions	—			(344		)	(35		)	(379		)
Purchases of Short-term Investments	—			—			(8		)	(8		)
Proceeds from Sales of Short-term Investments	—			—			20			20
Other Investing Activities	(13		)	(85		)	100			2
Net Cash Provided by (Used in) Investing Activities	(13		)	(429		)	77			(365		)
Financing Activities
Long-term Debt Repaid	(507		)	(16		)	(1		)	(524		)
Dividends Paid	(96		)	(170		)	170			(96		)
Stock Options Exercised	19			—			—			19
Shares Repurchased	(300		)	—			—			(300		)
Other Financing Activities	22			—			(9		)	13
Net Cash Provided by (Used in) Financing Activities	(862		)	(186		)	160			(888		)
Net Decrease in Cash and Cash Equivalents	(679		)	(74		)	(5		)	(758		)
Cash and Cash Equivalents at Beginning of Period	1,100			118			74			1,292
Cash and Cash Equivalents at End of Period	$	421		$	44		$	69		$	534