Debt and Credit Agreements

12 Months Ended

Dec. 27, 2013

Debt was as follows:



	Maturity at December	Average Interest Rates at December	December			December
(Dollars in Millions)	2013	2013	2013			2012
Notes	2014-2044	5.7%	$	8,935		$	9,151
Equipment Obligations^(a)	2014-2023	7.3%	602			667
Capital Leases	2014-2026	8.1%	16			12
Convertible Debentures	2021	1.0%	2			2
Subtotal Long-term Debt (including current portion)			$	9,555		$	9,832
Less Debt Due within One Year			(533		)	(780		)
Long-term Debt (excluding current portion)			$	9,022		$	9,052

(a) These obligations are secured by an interest in certain railroad equipment.

For information regarding the fair value of debt, see Note 13, Fair Value Measurements.

Debt Issuance

During 2013, CSX issued $500 million of 3.7% notes due 2023. These notes are included in the consolidated balance sheets under long-term debt and may be redeemed by the Company at any time. The net proceeds were used for general corporate purposes, which may include repayment of indebtedness (including CSX’s 5.30% notes that mature on February 15, 2014) outstanding from time to time, repurchases of CSX’s common stock, capital investment, working capital requirements, improvements in productivity and other cost reductions at CSX’s major transportation units.

Long-term Debt Maturities



(Dollars in Millions)	Maturities as of
Fiscal Years Ending	December 2013
2014	$	533
2015	629
2016	22
2017	631
2018	619
Thereafter	7,121
Total Long-term Debt Maturities (including current portion)	$	9,555

NOTE 9. Debt and Credit Agreements, continued

Credit Facilities

CSX has a $1 billion unsecured, revolving credit facility backed by a diverse syndicate of banks. This facility expires in September 2016, and as of the date of this filing, the Company has no outstanding balances under this facility. The facility allows borrowings at floating (LIBOR-based) interest rates, plus a spread, depending upon CSX's senior unsecured debt ratings. LIBOR is the London Interbank Offered Rate which is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds.

Commitment fees and interest rates payable under the facility were similar to fees and rates available to comparably rated investment-grade borrowers. At December 2013, CSX was in compliance with all covenant requirements under the facilities.

Receivables Securitization Facility

The Company's $250 million receivables securitization facility has a 364-day term and expires in December 2014. The purpose of this facility is to provide an alternative to commercial paper and a low cost source of short-term liquidity. The Company anticipates either renewing the facility or replacing it with another liquidity-based solution. Under the terms of this facility, CSX Transportation transfers eligible third-party receivables to CSX Trade Receivables, LLC ("CSX Trade Receivables"), a bankruptcy-remote special purpose subsidiary. A separate subsidiary of CSX services the receivables. Upon transfer, the receivables become assets of CSX Trade Receivables and are not available to the creditors of CSX or any of its other subsidiaries. In the event CSX Trade Receivables draws under this facility, the Company will record an equivalent amount of debt on its consolidated financial statements. As of the date of this filing, the Company has no outstanding balances under this facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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