Share-Based Compensation

3 Months Ended

Mar. 29, 2013

Share-based Compensation [Abstract]

Share-Based Compensation

Share-Based Compensation

Under CSX's share-based compensation plans, awards primarily consist of performance grants, restricted stock awards, restricted stock units, stock options and stock grants for directors. CSX has not granted stock options since 2003. Awards granted under the various programs are determined and approved by the Compensation Committee of the Board of Directors or, in certain circumstances, by the Chief Executive Officer for awards to management employees other than senior executives. The Board of Directors approves awards granted to the Company's non-management directors upon recommendation of the Governance Committee.

Total pre-tax benefit associated with all share-based compensation and the related income tax expense are as follows:

	First Quarters
(Dollars in millions)	2013			2012
Share-Based Compensation Benefit (a)	$	(3	)	$	—
Income Tax Expense	1			—

(a) Share-based compensation was a benefit in first quarter 2013 and was zero in first quarter 2012 driven by lower anticipated payouts on long-term incentive compensation.

NOTE 3. Share-Based Compensation, continued

The following table provides information about stock options exercised and expired.

	First Quarters
(In thousands)	2013	2012
Number of Stock Options Exercised	1,191	1,299
Number of Stock Options Expired	—	15

As of December 2009, all outstanding options were vested, and therefore, there will be no future expense related to these options.  As of the end of first quarter 2013, CSX had approximately 481 thousand stock options outstanding.