Earnings Per Share

3 Months Ended

Mar. 28, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution:

	First Quarters
	2014		2013
Numerator (Dollars in millions):
Net Earnings	$	398	$	462
Denominator (Units in millions):
Average Common Shares Outstanding	1,008		1,022
Other Potentially Dilutive Common Shares	—		1
Average Common Shares Outstanding, Assuming Dilution	1,008		1,023
Net Earnings Per Share, Basic	$	0.40	$	0.45
Net Earnings Per Share, Assuming Dilution	$	0.40	$	0.45

Basic earnings per share is based on the weighted-average number 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;

• in prior periods, employee stock options (all stock options expired in May 2013); 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.