Summarized Consolidating Financial Data

9 Months Ended

Sep. 26, 2014

Summarized Consolidating Financial Data [Abstract]

In 2007, CSXT, a wholly-owned subsidiary of CSX Corporation, sold secured equipment notes maturing in 2023 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 shown in the tables below.



Consolidating Income Statements
(Dollars in millions)
Third Quarter 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	3,202		$	19		$	3,221
Expense	(113		)	2,368			(10		)	2,245
Operating Income	113			834			29			976

Equity in Earnings of Subsidiaries	527			1			(528		)	—
Interest (Expense) / Benefit	(133		)	(11		)	7			(137		)
Other Income / (Expense) - Net	(12		)	(9		)	(5		)	(26		)

Earnings Before Income Taxes	495			815			(497		)	813
Income Tax Benefit / (Expense)	14			(309		)	(9		)	(304		)
Net Earnings	$	509		$	506		$	(506	)	$	509

Total Comprehensive Earnings	$	518		$	507		$	(507	)	$	518

Third Quarter 2013	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,965		$	20		$	2,985
Expense	(98		)	2,247			(4		)	2,145
Operating Income	98			718			24			840

Equity in Earnings of Subsidiaries	483			—			(483		)	—
Interest (Expense) / Benefit	(125		)	(15		)	4			(136		)
Other Income / (Expense) - Net	(2		)	2			5			5

Earnings Before Income Taxes	454			705			(450		)	709
Income Tax (Expense) / Benefit	1			(254		)	(1		)	(254		)
Net Earnings	$	455		$	451		$	(451	)	$	455

Total Comprehensive Earnings	$	471		$	453		$	(453	)	$	471



Consolidating Income Statements
(Dollars in millions)
Nine Months Ended September 26, 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	9,417		$	60		$	9,477
Expense	(321		)	7,121			(35		)	6,765
Operating Income	321			2,296			95			2,712

Equity in Earnings of Subsidiaries	1,488			1			(1,489		)	—
Interest (Expense) / Benefit	(389		)	(39		)	16			(412		)
Other Income / (Expense) - Net	(17		)	(13		)	(1		)	(31		)

Earnings Before Income Taxes	1,403			2,245			(1,379		)	2,269
Income Tax (Expense) / Benefit	33			(831		)	(35		)	(833		)
Net Earnings	$	1,436		$	1,414		$	(1,414	)	$	1,436

Total Comprehensive Earnings	$	1,476		$	1,422		$	(1,422	)	$	1,476

Nine Months Ended September 27, 2013	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	8,938		$	56		$	8,994
Expense	(283		)	6,677			(60		)	6,334
Operating Income	283			2,261			116			2,660

Equity in Earnings of Subsidiaries	1,508			(1		)	(1,507		)	—
Interest (Expense) / Benefit	(387		)	(47		)	11			(423		)
Other Income / (Expense) - Net	(5		)	1			15			11

Earnings Before Income Taxes	1,399			2,214			(1,365		)	2,248
Income Tax (Expense) / Benefit	39			(812		)	(37		)	(810		)
Net Earnings	$	1,438		$	1,402		$	(1,402	)	$	1,438

Total Comprehensive Earnings	$	1,488		$	1,406		$	(1,406	)	$	1,488



Consolidating Balance Sheet
(Dollars in millions)
As of September 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated

ASSETS
Current Assets
Cash and Cash Equivalents	$	295		$	128		$	56		$	479
Short-term Investments	565			—			10			575
Accounts Receivable - Net	5			189			929			1,123
Receivable from Affiliates	1,268			2,618			(3,886		)	—
Materials and Supplies	—			276			—			276
Deferred Income Taxes	(4		)	132			—			128
Other Current Assets	17			65			13			95
Total Current Assets	2,146			3,408			(2,878		)	2,676

Properties	1			36,177			2,355			38,533
Accumulated Depreciation	(1		)	(9,330		)	(1,208		)	(10,539		)
Properties - Net	—			26,847			1,147			27,994

Investments in Conrail	—			—			775			775
Affiliates and Other Companies	(39		)	636			(27		)	570
Investments in Consolidated Subsidiaries	21,299			—			(21,299		)	—
Other Long-term Assets	216			389			3			608
Total Assets	$	23,622		$	31,280		$	(22,279	)	$	32,623

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	144		$	811		$	31		$	986
Labor and Fringe Benefits Payable	35			427			45			507
Payable to Affiliates	3,287			503			(3,790		)	—
Casualty, Environmental and Other Reserves	—			136			15			151
Current Maturities of Long-term Debt	200			30			—			230
Income and Other Taxes Payable	(273		)	510			12			249
Other Current Liabilities	—			103			5			108
Total Current Liabilities	3,393			2,520			(3,682		)	2,231

Casualty, Environmental and Other Reserves	—			216			65			281
Long-term Debt	8,705			682			—			9,387
Deferred Income Taxes	(62		)	8,615			189			8,742
Other Long-term Liabilities	467			497			(124		)	840
Total Liabilities	$	12,503		$	12,530		$	(3,552	)	$	21,481

Shareholders' Equity
Common Stock, $1 Par Value	$	995		$	181		$	(181	)	$	995
Other Capital	80			5,077			(5,077		)	80
Retained Earnings	10,527			13,500			(13,500		)	10,527
Accumulated Other Comprehensive Loss	(483		)	(35		)	35			(483		)
Noncontrolling Interest	—			27			(4		)	23
Total Shareholders' Equity	$	11,119		$	18,750		$	(18,727	)	$	11,142
Total Liabilities and Shareholders' Equity	$	23,622		$	31,280		$	(22,279	)	$	32,623



Consolidating Balance Sheet (Dollars in millions)
As of December 2013	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	439		$	91		$	62		$	592
Short-term Investments	472			—			15			487
Accounts Receivable - Net	3			240			809			1,052
Receivable from Affiliates	1,141			2,635			(3,776		)	—
Materials and Supplies	—			252			—			252
Deferred Income Taxes	(5		)	161			(1		)	155
Other Current Assets	1			57			6			64
Total Current Assets	2,051			3,436			(2,885		)	2,602

Properties	1			34,987			2,196			37,184
Accumulated Depreciation	(1		)	(8,778		)	(1,114		)	(9,893		)
Properties - Net	—			26,209			1,082			27,291

Investments in Conrail	—			—			752			752
Affiliates and Other Companies	(39		)	612			(27		)	546
Investment in Consolidated Subsidiaries	20,226			—			(20,226		)	—
Other Long-term Assets	217			388			(14		)	591
Total Assets	$	22,455		$	30,645		$	(21,318	)	$	31,782

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	110		$	809		$	38		$	957
Labor and Fringe Benefits Payable	38			491			58			587
Payable to Affiliates	3,298			535			(3,833		)	—
Casualty, Environmental and Other Reserves	—			136			15			151
Current Maturities of Long-term Debt	200			333			—			533
Income and Other Taxes Payable	(397		)	479			9			91
Other Current Liabilities	—			103			2			105
Total Current Liabilities	3,249			2,886			(3,711		)	2,424

Casualty, Environmental and Other Reserves	—			231			69			300
Long-term Debt	8,308			714			—			9,022
Deferred Income Taxes	(64		)	8,548			178			8,662
Other Long-term Liabilities	479			512			(121		)	870
Total Liabilities	$	11,972		$	12,891		$	(3,585	)	$	21,278

Shareholders' Equity
Common Stock, $1 Par Value	$	1,009		$	181		$	(181	)	$	1,009
Other Capital	61			5,077			(5,077		)	61
Retained Earnings	9,936			12,514			(12,514		)	9,936
Accumulated Other Comprehensive Loss	(523		)	(43		)	43			(523		)
Noncontrolling Minority Interest	—			25			(4		)	21
Total Shareholders' Equity	$	10,483		$	17,754		$	(17,733	)	$	10,504
Total Liabilities and Shareholders' Equity	$	22,455		$	30,645		$	(21,318	)	$	31,782



Consolidating Cash Flow Statements
(Dollars in millions)
Nine months ended September 26, 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	397		$	2,301		$	(396	)	$	2,302
Investing Activities
Property Additions	—			(1,398		)	(159		)	(1,557		)
Purchases of Short-term Investments	(1,170		)	—			—			(1,170		)
Proceeds from Sales of Short-term Investments	1,077			—			25			1,102
Other Investing Activities	—			(90		)	95			5
Net Cash Provided by (Used in) Investing Activities	(93		)	(1,488		)	(39		)	(1,620		)
Financing Activities
Long-term Debt Issued	1,000			—			—			1,000
Long-term Debt Repaid	(600		)	(332		)	—			(932		)
Dividends Paid	(470		)	(428		)	428			(470		)
Shares Repurchased	(388		)	—			—			(388		)
Other Financing Activities	10			(16		)	1			(5		)
Net Cash Provided by (Used in) Financing Activities	(448		)	(776		)	429			(795		)
Net Increase (Decrease) in Cash and Cash Equivalents	(144		)	37			(6		)	(113		)
Cash and Cash Equivalents at Beginning of Period	439			91			62			592
Cash and Cash Equivalents at End of Period	$	295		$	128		$	56		$	479

NOTE 11. Summarized Consolidating Financial Data, continued



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 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