Summarized Consolidating Financial Data

9 Months Ended

Sep. 30, 2019

Condensed Financial Information 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 following tables.



Consolidating Income Statements
(Dollars in millions)
Third Quarter 2019	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,958		$	20		$	2,978
Expense	(138		)	1,862			(33		)	1,691
Operating Income	138			1,096			53			1,287

Equity in Earnings of Subsidiaries	883			—			(883		)	—
Interest (Expense) / Benefit	(220		)	(11		)	45			(186		)
Other Income / (Expense) - Net	9			47			(32		)	24

Earnings Before Income Taxes	810			1,132			(817		)	1,125
Income Tax Benefit / (Expense)	46			(267		)	(48		)	(269		)
Net Earnings	$	856		$	865		$	(865	)	$	856

Total Comprehensive Earnings	$	863		$	864		$	(864	)	$	863

Third Quarter 2018	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	3,110		$	19		$	3,129
Expense	(86		)	1,952			(30		)	1,836
Operating Income	86			1,158			49			1,293

Equity in Earnings of Subsidiaries	953			—			(953		)	—
Interest (Expense) / Benefit	(190		)	(11		)	39			(162		)
Other Income / (Expense) - Net	6			35			(22		)	19

Earnings Before Income Taxes	855			1,182			(887		)	1,150
Income Tax Benefit / (Expense)	39			(278		)	(17		)	(256		)
Net Earnings	$	894		$	904		$	(904	)	$	894

Total Comprehensive Earnings	$	901		$	903		$	(903	)	$	901



Consolidating Income Statements
(Dollars in millions)
Nine Months 2019	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	8,992		$	60		$	9,052
Expense	(413		)	5,776			(122		)	5,241
Operating Income	413			3,216			182			3,811

Equity in Earnings of Subsidiaries	2,683			—			(2,683		)	—
Interest (Expense) / Benefit	(658		)	(32		)	142			(548		)
Other Income / (Expense) - Net	28			150			(106		)	72

Earnings Before Income Taxes	2,466			3,334			(2,465		)	3,335
Income Tax (Expense) / Benefit	94			(788		)	(81		)	(775		)
Net Earnings	$	2,560		$	2,546		$	(2,546	)	$	2,560

Total Comprehensive Earnings	$	2,573		$	2,542		$	(2,542	)	$	2,573

Nine Months 2018	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	9,050		$	57		$	9,107
Expense	(248		)	5,843			(108		)	5,487
Operating Income	248			3,207			165			3,620

Equity in Earnings of Subsidiaries	2,653			—			(2,653		)	—
Interest (Expense) / Benefit	(535		)	(28		)	95			(468		)
Other Income / (Expense) - Net	16			87			(49		)	54

Earnings Before Income Taxes	2,382			3,266			(2,442		)	3,206
Income Tax (Expense) / Benefit	84			(776		)	(48		)	(740		)
Net Earnings	$	2,466		$	2,490		$	(2,490	)	$	2,466

Total Comprehensive Earnings	$	2,378		$	2,484		$	(2,484	)	$	2,378

Summarized Consolidating Financial Data, continued



Consolidating Balance Sheet
(Dollars in millions)
September 30, 2019	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated

ASSETS
Current Assets
Cash and Cash Equivalents	$	1,355		$	152		$	14		$	1,521
Short-term Investments	1,028			—			9			1,037
Accounts Receivable - Net	2			1,044			55			1,101
Receivable from Affiliates	874			6,918			(7,792		)	—
Materials and Supplies	—			235			—			235
Other Current Assets	(1		)	50			17			66
Total Current Assets	3,258			8,399			(7,697		)	3,960

Properties	1			42,055			2,956			45,012
Accumulated Depreciation	(1		)	(11,231		)	(1,702		)	(12,934		)
Properties - Net	—			30,824			1,254			32,078

Investments in Conrail	—			—			969			969
Affiliates and Other Companies	(39		)	904			15			880
Investments in Consolidated Subsidiaries	33,966			—			(33,966		)	—
Right-of-Use Lease Asset	—			519			20			539
Other Long-term Assets	3			608			(242		)	369
Total Assets	$	37,188		$	41,254		$	(39,647	)	$	38,795

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	200		$	832		$	69		$	1,101
Labor and Fringe Benefits Payable	36			411			39			486
Payable to Affiliates	8,959			385			(9,344		)	—
Casualty, Environmental and Other Reserves	—			95			15			110
Current Maturities of Long-term Debt	500			245			—			745
Income and Other Taxes Payable	(428		)	570			13			155
Other Current Liabilities	—			197			11			208
Total Current Liabilities	9,267			2,735			(9,197		)	2,805

Casualty, Environmental and Other Reserves	—			161			34			195
Long-term Debt	15,532			460			—			15,992
Deferred Income Taxes - Net	(150		)	6,755			277			6,882
Long-term Lease Liability	—			481			13			494
Other Long-term Liabilities	675			203			(330		)	548
Total Liabilities	$	25,324		$	10,795		$	(9,203	)	$	26,916

Shareholders' Equity
Common Stock, $1 Par Value	$	782		$	181		$	(181	)	$	782
Other Capital	314			5,096			(5,096		)	314
Retained Earnings	11,416			25,118			(25,118		)	11,416
Accumulated Other Comprehensive Loss	(648		)	49			(49		)	(648		)
Noncontrolling Interest	—			15			—			15
Total Shareholders' Equity	$	11,864		$	30,459		$	(30,444	)	$	11,879
Total Liabilities and Shareholders' Equity	$	37,188		$	41,254		$	(39,647	)	$	38,795

Summarized Consolidating Financial Data, continued



Consolidating Balance Sheet (Dollars in millions)
December 31, 2018	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	716		$	130		$	12		$	858
Short-term Investments	250			—			3			253
Accounts Receivable - Net	1			1,003			6			1,010
Receivable from Affiliates	1,020			5,214			(6,234		)	—
Materials and Supplies	—			263			—			263
Other Current Assets	63			104			14			181
Total Current Assets	2,050			6,714			(6,199		)	2,565

Properties	1			41,897			2,907			44,805
Accumulated Depreciation	(1		)	(11,194		)	(1,612		)	(12,807		)
Properties - Net	—			30,703			1,295			31,998

Investments in Conrail	—			—			943			943
Affiliates and Other Companies	(39		)	859			16			836
Investment in Consolidated Subsidiaries	32,033			—			(32,033		)	—
Other Long-term Assets	2			598			(213		)	387
Total Assets	$	34,046		$	38,874		$	(36,191	)	$	36,729

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	132		$	763		$	54		$	949
Labor and Fringe Benefits Payable	41			440			69			550
Payable to Affiliates	6,973			633			(7,606		)	—
Casualty, Environmental and Other Reserves	—			99			14			113
Current Maturities of Long-term Debt	—			18			—			18
Income and Other Taxes Payable	(290		)	392			4			106
Other Current Liabilities	11			162			6			179
Total Current Liabilities	6,867			2,507			(7,459		)	1,915

Casualty, Environmental and Other Reserves	—			176			35			211
Long-term Debt	14,029			710			—			14,739
Deferred Income Taxes - Net	(134		)	6,601			223			6,690
Other Long-term Liabilities	721			211			(338		)	594
Total Liabilities	$	21,483		$	10,205		$	(7,539	)	$	24,149

Shareholders' Equity
Common Stock, $1 Par Value	$	818		$	181		$	(181	)	$	818
Other Capital	249			5,096			(5,096		)	249
Retained Earnings	12,157			23,322			(23,322		)	12,157
Accumulated Other Comprehensive Loss	(661		)	53			(53		)	(661		)
Noncontrolling Minority Interest	—			17			—			17
Total Shareholders' Equity	$	12,563		$	28,669		$	(28,652	)	$	12,580
Total Liabilities and Shareholders' Equity	$	34,046		$	38,874		$	(36,191	)	$	36,729

Summarized Consolidating Financial Data, continued



Consolidating Cash Flow Statements
(Dollars in millions)
Nine Months 2019	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	2,732		$	1,629		$	(624	)	$	3,737
Investing Activities
Property Additions	—			(1,085		)	(106		)	(1,191		)
Proceeds from Property Dispositions	—			218			—			218
Purchases of Short-term Investments	(2,255		)	—			—			(2,255		)
Proceeds from Sales of Short-term Investments	1,480			—			—			1,480
Other Investing Activities	4			33			(18		)	19
Net Cash Used in Investing Activities	(771		)	(834		)	(124		)	(1,729		)
Financing Activities
Long-term Debt Issued	2,000			—			—			2,000
Long-term Debt Repaid	—			(18		)	—			(18		)
Dividends Paid	(577		)	(750		)	750			(577		)
Shares Repurchased	(2,767		)	—			—			(2,767		)
Other Financing Activities	22			(5		)	—			17
Net Cash (Used in) Provided by Financing Activities	(1,322		)	(773		)	750			(1,345		)
Net Increase in Cash and Cash Equivalents	639			22			2			663
Cash and Cash Equivalents at Beginning of Period	716			130			12			858
Cash and Cash Equivalents at End of Period	$	1,355		$	152		$	14		$	1,521

NOTE 13. Summarized Consolidating Financial Data, continued



Consolidating Cash Flow Statements
(Dollars in millions)
Nine Months 2018	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	2,417		$	1,792		$	(803	)	$	3,406
Investing Activities
Property Additions	—			(1,134		)	(106		)	(1,240		)
Proceeds from Property Dispositions	—			257			—			257
Purchases of Short-term Investments	(609		)	—			(2		)	(611		)
Proceeds from Sales of Short-term Investments	—			—			15			15
Other Investing Activities	(1		)	(149		)	142			(8		)
Net Cash (Used in) Provided by Investing Activities	(610		)	(1,026		)	49			(1,587		)
Financing Activities
Long-term Debt Issued	2,000			—			—			2,000
Long-term Debt Repaid	—			(19		)	—			(19		)
Dividends Paid	(570		)	(750		)	750			(570		)
Shares Repurchased	(2,816		)	—			—			(2,816		)
Accelerated Share Repurchase Pending Final Settlement	(100		)	—			—			(100		)
Other Financing Activities	(58		)	(2		)	8			(52		)
Net Cash (Used in) Provided by Financing Activities	(1,544		)	(771		)	758			(1,557		)
Net Increase (Decrease) in Cash and Cash Equivalents	263			(5		)	4			262
Cash and Cash Equivalents at Beginning of Period	274			121			6			401
Cash and Cash Equivalents at End of Period	$	537		$	116		$	10		$	663