Summarized Consolidating Financial Data

9 Months Ended

Sep. 27, 2013

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)
Third Quarter 2013	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,979		$	20		$	2,999
Expense	(98		)	2,247			(4		)	2,145
Operating Income	98			732			24			854

Equity in Earnings of Subsidiaries	491			—			(491		)	—
Interest (Expense) / Benefit	(125		)	(15		)	4			(136		)
Other Income / (Expense) - Net	(2		)	2			5			5

Earnings Before Income Taxes	462			719			(458		)	723
Income Tax Benefit / (Expense)	1			(260		)	(1		)	(260		)
Net Earnings	$	463		$	459		$	(459	)	$	463

Total Comprehensive Earnings	$	479		$	461		$	(461	)	$	479

Third Quarter 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,878		$	16		$	2,894
Expense	(90		)	2,166			(36		)	2,040
Operating Income	90			712			52			854

Equity in Earnings of Subsidiaries	478			—			(478		)	—
Interest (Expense) / Benefit	(126		)	(17		)	5			(138		)
Other Income / (Expense) - Net	(1		)	2			4			5

Earnings Before Income Taxes	441			697			(417		)	721
Income Tax (Expense) / Benefit	14			(262		)	(18		)	(266		)
Net Earnings	$	455		$	435		$	(435	)	$	455

Total Comprehensive Earnings	$	471		$	437		$	(437	)	$	471



Consolidating Income Statements
(Dollars in millions)
Nine Months Ended September 27, 2013	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	8,970		$	56		$	9,026
Expense	(283		)	6,677			(60		)	6,334
Operating Income	283			2,293			116			2,692

Equity in Earnings of Subsidiaries	1,527			(1		)	(1,526		)	—
Interest (Expense) / Benefit	(387		)	(47		)	11			(423		)
Other Income / (Expense) - Net	(5		)	1			15			11

Earnings Before Income Taxes	1,418			2,246			(1,384		)	2,280
Income Tax (Expense) / Benefit	39			(825		)	(37		)	(823		)
Net Earnings	$	1,457		$	1,421		$	(1,421	)	$	1,457

Total Comprehensive Earnings	$	1,507		$	1,425		$	(1,425	)	$	1,507

Nine Months Ended September 28, 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	8,823		$	49		$	8,872
Expense	(266		)	6,587			(102		)	6,219
Operating Income	266			2,236			151			2,653

Equity in Earnings of Subsidiaries	1,512			(1		)	(1,511		)	—
Interest (Expense) / Benefit	(381		)	(53		)	13			(421		)
Other Income / (Expense) - Net	(3		)	6			11			14

Earnings Before Income Taxes	1,394			2,188			(1,336		)	2,246
Income Tax (Expense) / Benefit	22			(795		)	(57		)	(830		)
Net Earnings	$	1,416		$	1,393		$	(1,393	)	$	1,416

Total Comprehensive Earnings	$	1,458		$	1,393		$	(1,393	)	$	1,458



Consolidating Balance Sheet
(Dollars in millions)
As of September 2013	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated

ASSETS
Current Assets
Cash and Cash Equivalents	$	432		$	101		$	58		$	591
Short-term Investments	120			—			8			128
Accounts Receivable - Net	2			363			616			981
Receivable from Affiliates	1,179			2,389			(3,568		)	—
Materials and Supplies	—			267			—			267
Deferred Income Taxes	(3		)	152			(1		)	148
Other Current Assets	11			61			13			85
Total Current Assets	1,741			3,333			(2,874		)	2,200

Properties	3			34,535			2,099			36,637
Accumulated Depreciation	(3		)	(8,606		)	(1,082		)	(9,691		)
Properties - Net	—			25,929			1,017			26,946

Investments in Conrail	—			—			715			715
Affiliates and Other Companies	(39		)	607			(42		)	526
Investments in Consolidated Subsidiaries	19,766			—			(19,766		)	—
Other Long-term Assets	180			384			(8		)	556
Total Assets	$	21,648		$	30,253		$	(20,958	)	$	30,943

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	143		$	898		$	37		$	1,078
Labor and Fringe Benefits Payable	36			429			46			511
Payable to Affiliates	3,309			481			(3,790		)	—
Casualty, Environmental and Other Reserves	—			134			15			149
Current Maturities of Long-term Debt	200			64			—			264
Income and Other Taxes Payable	(379		)	490			27			138
Other Current Liabilities	—			109			2			111
Total Current Liabilities	3,309			2,605			(3,663		)	2,251

Casualty, Environmental and Other Reserves	—			217			67			284
Long-term Debt	7,808			979			—			8,787
Deferred Income Taxes	(204		)	8,448			143			8,387
Other Long-term Liabilities	887			603			(124		)	1,366
Total Liabilities	$	11,800		$	12,852		$	(3,577	)	$	21,075

Shareholders' Equity
Common Stock, $1 Par Value	$	1,014		$	181		$	(181	)	$	1,014
Other Capital	50			5,077			(5,077		)	50
Retained Earnings	9,670			12,217			(12,217		)	9,670
Accumulated Other Comprehensive Loss	(886		)	(98		)	98			(886		)
Noncontrolling Interest	—			24			(4		)	20
Total Shareholders' Equity	$	9,848		$	17,401		$	(17,381	)	$	9,868
Total Liabilities and Shareholders' Equity	$	21,648		$	30,253		$	(20,958	)	$	30,943



Consolidating Balance Sheet (Dollars in millions)
As of December 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	481		$	235		$	68		$	784
Short-term Investments	555			—			32			587
Accounts Receivable - Net	3			427			532			962
Receivable from Affiliates	993			1,798			(2,791		)	—
Materials and Supplies	—			274			—			274
Deferred Income Taxes	52			62			5			119
Other Current Assets	11			64			—			75
Total Current Assets	2,095			2,860			(2,154		)	2,801

Properties	8			33,333			1,938			35,279
Accumulated Depreciation	(8		)	(8,225		)	(996		)	(9,229		)
Properties - Net	—			25,108			942			26,050

Investments in Conrail	—			—			695			695
Affiliates and Other Companies	(39		)	593			(43		)	511
Investment in Consolidated Subsidiaries	18,783			—			(18,783		)	—
Other Long-term Assets	186			368			(40		)	514
Total Assets	$	21,025		$	28,929		$	(19,383	)	$	30,571

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	133		$	846		$	35		$	1,014
Labor and Fringe Benefits Payable	35			391			42			468
Payable to Affiliates	2,679			411			(3,090		)	—
Casualty, Environmental and Other Reserves	—			124			16			140
Current Maturities of Long-term Debt	700			80			—			780
Income and Other Taxes Payable	(262		)	334			13			85
Other Current Liabilities	(1		)	139			2			140
Total Current Liabilities	3,284			2,325			(2,982		)	2,627

Casualty, Environmental and Other Reserves	—			256			81			337
Long-term Debt	8,005			1,047			—			9,052
Deferred Income Taxes	(153		)	8,131			118			8,096
Other Long-term Liabilities	901			656			(100		)	1,457
Total Liabilities	$	12,037		$	12,415		$	(2,883	)	$	21,569

Shareholders' Equity
Common Stock, $1 Par Value	$	1,020		$	181		$	(181	)	$	1,020
Other Capital	28			5,672			(5,672		)	28
Retained Earnings	8,876			10,740			(10,740		)	8,876
Accumulated Other Comprehensive Loss	(936		)	(102		)	102			(936		)
Noncontrolling Minority Interest	—			23			(9		)	14
Total Shareholders' Equity	$	8,988		$	16,514		$	(16,500	)	$	9,002
Total Liabilities and Shareholders' Equity	$	21,025		$	28,929		$	(19,383	)	$	30,571



Consolidating Cash Flow Statements
(Dollars in millions)
Nine months ended September 27, 2013	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	871		$	2,106		$	(478	)	$	2,499
Investing Activities
Property Additions	—			(1,522		)	(165		)	(1,687		)
Purchases of Short-term Investments	(805		)	—			(4		)	(809		)
Proceeds from Sales of Short-term Investments	1,240			—			67			1,307
Other Investing Activities	(4		)	(76		)	26			(54		)
Net Cash Provided by (Used in) Investing Activities	431			(1,598		)	(76		)	(1,243		)
Financing Activities
Long-term Debt Issued	—			—			—			—
Long-term Debt Repaid	(700		)	(79		)	—			(779		)
Dividends Paid	(448		)	(548		)	548			(448		)
Stock Options Exercised	9			—			—			9
Shares Repurchased	(224		)	—			—			(224		)
Other Financing Activities	12			(15		)	(4		)	(7		)
Net Cash Provided by (Used in) Financing Activities	(1,351		)	(642		)	544			(1,449		)
Net Increase (Decrease) in Cash and Cash Equivalents	(49		)	(134		)	(10		)	(193		)
Cash and Cash Equivalents at Beginning of Period	481			235			68			784
Cash and Cash Equivalents at End of Period	$	432		$	101		$	58		$	591

NOTE 11. Summarized Consolidating Financial Data, continued



Consolidating Cash Flow Statements
(Dollars in millions)
Nine months ended September 28, 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	429		$	2,202		$	(327	)	$	2,304
Investing Activities
Property Additions	—			(1,669		)	(161		)	(1,830		)
Purchases of Short-term Investments	(50		)	—			(28		)	(78		)
Proceeds from Sales of Short-term Investments	525			—			48			573
Other Investing Activities	(6		)	78			(62		)	10
Net Cash Provided by (Used in) Investing Activities	469			(1,591		)	(203		)	(1,325		)
Financing Activities
Long-term Debt Issued	300			—			—			300
Long-term Debt Repaid	(400		)	(79		)	(2		)	(481		)
Dividends Paid	(415		)	(536		)	536			(415		)
Stock Options Exercised	11			—			—			11
Shares Repurchased	(500		)	—			—			(500		)
Other Financing Activities	15			3			(2		)	16
Net Cash Provided by (Used in) Financing Activities	(989		)	(612		)	532			(1,069		)
Net Increase (Decrease) in Cash and Cash Equivalents	(91		)	(1		)	2			(90		)
Cash and Cash Equivalents at Beginning of Period	549			154			80			783
Cash and Cash Equivalents at End of Period	$	458		$	153		$	82		$	693