Summarized Consolidating Financial Data

6 Months Ended

Jun. 26, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

In 2007, CSXT, a wholly-owned subsidiary of CSX Corporation, sold secured equipment notes maturing in 2023 in a registered public offering. 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.

Summarized Consolidating Financial Data, continued



Consolidating Income Statements
(Dollars in millions)
Second Quarter 2015	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	3,045		$	19		$	3,064
Expense	(146		)	2,239			(46		)	2,047
Operating Income	146			806			65			1,017

Equity in Earnings of Subsidiaries	546			—			(546		)	—
Interest (Expense) / Benefit	(132		)	(9		)	7			(134		)
Other Income / (Expense) - Net	(2		)	7			(1		)	4

Earnings Before Income Taxes	558			804			(475		)	887
Income Tax Benefit / (Expense)	(5		)	(305		)	(24		)	(334		)
Net Earnings	$	553		$	499		$	(499	)	$	553

Total Comprehensive Earnings	$	565		$	499		$	(499	)	$	565

Second Quarter 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	3,223		$	21		$	3,244
Expense	(105		)	2,360			(8		)	2,247
Operating Income	105			863			29			997

Equity in Earnings of Subsidiaries	545			—			(545		)	—
Interest (Expense) / Benefit	(126		)	(14		)	5			(135		)
Other Income / (Expense) - Net	(3		)	(10		)	1			(12		)

Earnings Before Income Taxes	521			839			(510		)	850
Income Tax (Expense) / Benefit	8			(318		)	(11		)	(321		)
Net Earnings	$	529		$	521		$	(521	)	$	529

Total Comprehensive Earnings	$	544		$	522		$	(522	)	$	544

Summarized Consolidating Financial Data, continued



Consolidating Income Statements
(Dollars in millions)
Six Months Ended June 26, 2015	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	6,052		$	39		$	6,091
Expense	(294		)	4,583			(58		)	4,231
Operating Income	294			1,469			97			1,860

Equity in Earnings of Subsidiaries	986			—			(986		)	—
Interest (Expense) / Benefit	(265		)	(16		)	13			(268		)
Other Income / (Expense) - Net	(3		)	13			(4		)	6

Earnings Before Income Taxes	1,012			1,466			(880		)	1,598
Income Tax (Expense) / Benefit	(17		)	(551		)	(35		)	(603		)
Net Earnings	$	995		$	915		$	(915	)	$	995

Total Comprehensive Earnings	$	1,005		$	912		$	(912	)	$	1,005

Six Months Ended June 27, 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	6,215		$	41		$	6,256
Expense	(208		)	4,753			(25		)	4,520
Operating Income	208			1,462			66			1,736

Equity in Earnings of Subsidiaries	961			—			(961		)	—
Interest (Expense) / Benefit	(256		)	(28		)	9			(275		)
Other Income / (Expense) - Net	(5		)	(4		)	4			(5		)

Earnings Before Income Taxes	908			1,430			(882		)	1,456
Income Tax (Expense) / Benefit	19			(522		)	(26		)	(529		)
Net Earnings	$	927		$	908		$	(908	)	$	927

Total Comprehensive Earnings	$	958		$	915		$	(915	)	$	958

Summarized Consolidating Financial Data, continued



Consolidating Balance Sheet
(Dollars in millions)
As of June 2015	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated

ASSETS
Current Assets
Cash and Cash Equivalents	$	233		$	144		$	61		$	438
Short-term Investments	670			—			10			680
Accounts Receivable - Net	2			175			845			1,022
Receivable from Affiliates	1,194			2,324			(3,518		)	—
Materials and Supplies	—			295			—			295
Deferred Income Taxes	4			129			(1		)	132
Other Current Assets	5			84			13			102
Total Current Assets	2,108			3,151			(2,590		)	2,669

Properties	1			37,787			2,525			40,313
Accumulated Depreciation	(1		)	(9,752		)	(1,310		)	(11,063		)
Properties - Net	—			28,035			1,215			29,250

Investments in Conrail	—			—			787			787
Affiliates and Other Companies	(39		)	646			(28		)	579
Investments in Consolidated Subsidiaries	22,157			—			(22,157		)	—
Other Long-term Assets	174			399			(81		)	492
Total Assets	$	24,400		$	32,231		$	(22,854	)	$	33,777

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	108		$	638		$	26		$	772
Labor and Fringe Benefits Payable	34			411			35			480
Payable to Affiliates	3,125			495			(3,620		)	—
Casualty, Environmental and Other Reserves	—			131			15			146
Current Maturities of Long-term Debt	—			18			—			18
Income and Other Taxes Payable	(320		)	535			28			243
Other Current Liabilities	—			108			11			119
Total Current Liabilities	2,947			2,336			(3,505		)	1,778

Casualty, Environmental and Other Reserves	—			224			56			280
Long-term Debt	9,301			806			—			10,107
Deferred Income Taxes	(164		)	8,852			209			8,897
Other Long-term Liabilities	753			502			(117		)	1,138
Total Liabilities	$	12,837		$	12,720		$	(3,357	)	$	22,200

Shareholders' Equity
Common Stock, $1 Par Value	$	984		$	181		$	(181	)	$	984
Other Capital	118			5,089			(5,089		)	118
Retained Earnings	11,117			14,257			(14,257		)	11,117
Accumulated Other Comprehensive Loss	(656		)	(34		)	34			(656		)
Noncontrolling Interest	—			18			(4		)	14
Total Shareholders' Equity	$	11,563		$	19,511		$	(19,497	)	$	11,577
Total Liabilities and Shareholders' Equity	$	24,400		$	32,231		$	(22,854	)	$	33,777

Summarized Consolidating Financial Data, continued



Consolidating Balance Sheet (Dollars in millions)
As of December 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	510		$	100		$	59		$	669
Short-term Investments	250			—			42			292
Accounts Receivable - Net	2			206			921			1,129
Receivable from Affiliates	1,211			2,418			(3,629		)	—
Materials and Supplies	—			272			1			273
Deferred Income Taxes	3			139			(1		)	141
Other Current Assets	—			61			7			68
Total Current Assets	1,976			3,196			(2,600		)	2,572

Properties	1			36,888			2,454			39,343
Accumulated Depreciation	(1		)	(9,516		)	(1,242		)	(10,759		)
Properties - Net	—			27,372			1,212			28,584

Investments in Conrail	—			—			779			779
Affiliates and Other Companies	(39		)	644			(28		)	577
Investment in Consolidated Subsidiaries	21,570			—			(21,570		)	—
Other Long-term Assets	178			387			(24		)	541
Total Assets	$	23,685		$	31,599		$	(22,231	)	$	33,053

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	106		$	707		$	32		$	845
Labor and Fringe Benefits Payable	38			511			64			613
Payable to Affiliates	3,053			514			(3,567		)	—
Casualty, Environmental and Other Reserves	—			126			16			142
Current Maturities of Long-term Debt	200			29			(1		)	228
Income and Other Taxes Payable	(150		)	293			20			163
Other Current Liabilities	—			111			5			116
Total Current Liabilities	3,247			2,291			(3,431		)	2,107

Casualty, Environmental and Other Reserves	—			213			63			276
Long-term Debt	8,705			809			—			9,514
Deferred Income Taxes	(172		)	8,827			203			8,858
Other Long-term Liabilities	753			487			(118		)	1,122
Total Liabilities	$	12,533		$	12,627		$	(3,283	)	$	21,877

Shareholders' Equity
Common Stock, $1 Par Value	$	992		$	181		$	(181	)	$	992
Other Capital	92			5,077			(5,077		)	92
Retained Earnings	10,734			13,717			(13,717		)	10,734
Accumulated Other Comprehensive Loss	(666		)	(31		)	31			(666		)
Noncontrolling Minority Interest	—			28			(4		)	24
Total Shareholders' Equity	$	11,152		$	18,972		$	(18,948	)	$	11,176
Total Liabilities and Shareholders' Equity	$	23,685		$	31,599		$	(22,231	)	$	33,053

Summarized Consolidating Financial Data, continued



Consolidating Cash Flow Statements
(Dollars in millions)
Six months ended June 26, 2015	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	367		$	1,530		$	(315	)	$	1,582
Investing Activities
Property Additions	—			(1,215		)	(73		)	(1,288		)
Purchases of Short-term Investments	(775		)	—			—			(775		)
Proceeds from Sales of Short-term Investments	355			—			35			390
Proceeds from Property Dispositions	—			46			1			47
Other Investing Activities	(11		)	72			(9		)	52
Net Cash Provided by (Used in) Investing Activities	(431		)	(1,097		)	(46		)	(1,574		)
Financing Activities
Long-term Debt Issued	600			—			—			600
Long-term Debt Repaid	(200		)	(10		)	—			(210		)
Dividends Paid	(336		)	(375		)	375			(336		)
Shares Repurchased	(284		)	—			—			(284		)
Other Financing Activities	7			(4		)	(12		)	(9		)
Net Cash Provided by (Used in) Financing Activities	(213		)	(389		)	363			(239		)
Net Increase (Decrease) in Cash and Cash Equivalents	(277		)	44			2			(231		)
Cash and Cash Equivalents at Beginning of Period	510			100			59			669
Cash and Cash Equivalents at End of Period	$	233		$	144		$	61		$	438

NOTE 11. Summarized Consolidating Financial Data, continued



Consolidating Cash Flow Statements
(Dollars in millions)
Six months ended June 27, 2014	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	453		$	1,276		$	(284	)	$	1,445
Investing Activities
Property Additions	—			(867		)	(89		)	(956		)
Purchases of Short-term Investments	(360		)	—			—			(360		)
Proceeds from Sales of Short-term Investments	637			—			9			646
Proceeds from Property Dispositions	—			37			—			37
Other Investing Activities	—			(95		)	78			(17		)
Net Cash Provided by (Used in) Investing Activities	277			(925		)	(2		)	(650		)
Financing Activities
Long-term Debt Repaid	(200		)	(44		)	—			(244		)
Dividends Paid	(311		)	(285		)	285			(311		)
Shares Repurchased	(257		)	—			—			(257		)
Other Financing Activities	6			(10		)	2			(2		)
Net Cash Provided by (Used in) Financing Activities	(762		)	(339		)	287			(814		)
Net Increase (Decrease) in Cash and Cash Equivalents	(32		)	12			1			(19		)
Cash and Cash Equivalents at Beginning of Period	439			91			62			592
Cash and Cash Equivalents at End of Period	$	407		$	103		$	63		$	573