Debt and Credit Agreements

12 Months Ended

Dec. 31, 2019

Debt at December 2019 and December 2018 is shown in the table below. For information regarding the fair value of debt, see Note 13, Fair Value Measurements.



	Maturity at December	Average Interest Rates at December	December			December
(Dollars in Millions)	2019	2019	2019			2018
Notes	2020-2068	4.4%	$	16,056		$	14,558
Equipment Obligations^(a)	2020-2023	6.3%	178			195
Finance Leases	2020-2026	15.0%	4			4
Subtotal Long-term Debt (including current portion)			$	16,238		$	14,757
Less Debt Due within One Year			(245		)	(18		)
Long-term Debt (excluding current portion)			$	15,993		$	14,739

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

Debt Issuance & Early Redemption of Long-term Debt

CSX issued the following notes which are included in the consolidated balance sheets under long-term debt and may be redeemed by the Company at any time, subject to payment of certain make-whole premiums:


•	On September 12, 2019, issued $400 million of 2.40% notes due 2030 and $600 million of 3.35% notes due 2049. On October 15, 2019, a portion of the net proceeds was used to fully redeem CSX’s outstanding $500 million of 3.70% notes that otherwise would have matured on October 30, 2020.


•	On February 28, 2019, issued $600 million of 4.25% notes due 2029, which was a reopening of existing notes originally issued in November 2018, and $400 million of 4.50% notes due 2049.


•	On November 15, 2018, issued $350 million of 4.25% notes due 2029 and $650 million of 4.75% notes due 2048.


•	On February 20, 2018, issued $800 million of 3.80% notes due 2028, $850 million of 4.30% notes due 2048, and $350 million of 4.65% notes due 2068.

The net proceeds from debt issuances were used for general corporate purposes, which may include repurchases of CSX's common stock, capital investment, working capital requirements, improvements in productivity and other cost reductions at the Company’s major transportation units.

NOTE 10. Debt and Credit Agreements, continued

Long-term Debt Maturities (Net of Discounts, Premiums and Issuance Costs)



(Dollars in Millions)	Maturities at
Fiscal Years Ending	December 2019
2020	$	245
2021	401
2022	162
2023	639
2024	551
Thereafter	14,240
Total Long-term Debt Maturities, including current portion	$	16,238

Credit Facilities

In March 2019, CSX replaced its existing $1.0 billion unsecured, revolving credit facility with a new $1.2 billion unsecured, revolving credit facility backed by a diverse syndicate of banks. The new facility allows same-day borrowings at floating interest rates, based on LIBOR or an agreed-upon replacement, plus a spread that depends 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. This facility expires in March 2024, and as of December 31, 2019, the Company had no outstanding

balances under this facility.

Commitment fees and interest rates payable under the facility were similar to fees and rates available to comparably rated investment-grade borrowers. As of December 31, 2019, CSX was in compliance with all covenant requirements under the facility.

Commercial Paper

Under its commercial paper program, which is backed by the revolving credit facility, the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1.0 billion. Proceeds from issuances of the notes are expected to be used for general corporate purposes. At December 31, 2019, the Company had no commercial paper outstanding.