Other Comprehensive Income / (Loss)

12 Months Ended

Dec. 31, 2020

CSX reports comprehensive earnings or loss in accordance with the Comprehensive Income Topic in the ASC in the consolidated comprehensive income statement. Total comprehensive earnings are defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders (e.g., issuance of equity securities and dividends). Generally, for CSX, total comprehensive earnings equal net earnings plus or minus adjustments for pension and other post-retirement liabilities as well as other adjustments. Total comprehensive earnings represent the activity for a period net of tax and were $2.8 billion, $3.3 billion and $3.1 billion for 2020, 2019 and 2018, respectively.

While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. For CSX, AOCI is primarily the cumulative balance related to pension and other post-retirement benefit adjustments, interest rate derivatives and CSX's share of AOCI of equity method investees.

NOTE 16. Other Comprehensive Income / (Loss), continued

Changes in the AOCI balance by component are shown in the following table. Amounts reclassified in pension and other post-employment benefits to net earnings relate to the amortization of actuarial losses and are included in other income-net on the consolidated income statements. See Note 9. Employee Benefit Plans for further information. Interest rate derivatives consist of forward starting interest rate swaps classified as cash flow hedges. See Note 10, Debt and Credit Agreements for further information. Other primarily represents CSX's share of AOCI of equity method investees. Amounts reclassified in other to net earnings are included in materials, supplies, and other or equipment and other rents on the consolidated income statements.


	Pension and Other Post-Employment Benefits		Interest Rate Derivatives		Other		Accumulated Other Comprehensive Income (Loss)
(Dollars in millions)
Balance December 31, 2017 - Net of Tax	$	(440)	$	—	$	(46)	$	(486)
Other Comprehensive Income (Loss)
Reclassification of Stranded Tax Effects (a)	(108)		—		1		(107)
Loss Before Reclassifications	(111)		—		(8)		(119)
Amounts Reclassified to Net Earnings	38		—		(6)		32
Tax Benefit	17		—		2		19
Total Other Comprehensive Loss	(164)		—		(11)		(175)
Balance December 31, 2018 - Net of Tax	(604)		—		(57)		(661)
Other Comprehensive Income (Loss)

Loss Before Reclassifications	(43)		—		(5)		(48)
Amounts Reclassified to Net Earnings	23		—		8		31
Tax Benefit (Expense)	5		—		(2)		3
Total Other Comprehensive (Loss) Income	(15)		—		1		(14)
Balance December 31, 2019 - Net of Tax	(619)		—		(56)		(675)
Other Comprehensive Income (Loss)

(Loss) Income Before Reclassifications	(17)		80		(10)		53
Amounts Reclassified to Net Earnings	47		—		5		52
Tax Expense	(9)		(18)		(1)		(28)
Total Other Comprehensive Income (Loss)	21		62		(6)		77
Balance December 31, 2020 - Net of Tax	$	(598)	$	62	$	(62)	$	(598)

(a) As the result of a standard update adopted in 2018, certain tax effects stranded in accumulated other comprehensive income as a result of tax reform were reclassified to retained earnings.