XML 47 R28.htm IDEA: XBRL DOCUMENT v3.20.4
Stock Plans and Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation and Related Income Tax Benefit Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards.
 Fiscal Years
(Dollars in Millions)202020192018
Share-Based Compensation Expense
Stock Options$19 $18 $13 
Restricted Stock Units and Awards6 
Employee Stock Purchase Plan5 
Stock Awards for Directors2 
Performance Units(3)42 28 
Total Share-based Compensation Expense$29 $74 $51 
Income Tax Benefit$19 $43 $26 
Schedule of Assumptions and Inputs Used to Estimate Fair Value of Performance Units
The fair value of the performance units awarded during the years ended December 2020, 2019 and 2018 were calculated primarily using a Monte-Carlo simulation model with the following weighted-average assumptions:

Weighted-average assumptions used:202020192018
Annual dividend yieldn/a1.4 %1.6 %
Risk-free interest rate1.4 %2.4 %2.3 %
Annualized volatility24.5 %27.4 %29.1 %
Expected life (in years)
2.92.82.9
Schedule of Performance Unit Grant and Vesting Information Performance unit grant and vesting information is summarized as follows:
 Fiscal Years
 202020192018
Weighted-average grant date fair value $76.17 $66.18 $55.57 
Fair value of units vested in fiscal year ending (in millions)
$18 $17 $14 
Schedule of Performance Unit Activity Related to Outstanding Long-term Incentive Plans and Corresponding Fair Value
The performance unit activity related to the outstanding long-term incentive plans and corresponding fair value is summarized as follows:
 Performance Units Outstanding
(in Thousands)
Weighted-Average Fair Value at Grant Date
Unvested at December 31, 2019643 $60.58 
Granted 356 76.17 
Forfeited (34)66.71 
Vested (325)55.35 
Unvested at December 31, 2020640 $71.59 
Schedule of Assumptions and Inputs Used to Estimate Fair Value of Stock Options Assumptions and inputs used to estimate fair value of stock options are summarized as follows:
Fiscal Years
 202020192018
Weighted-average grant date fair value $18.94 $17.87 $14.65 
Stock options valuation assumptions:
Annual dividend yield1.2 %1.3 %1.5 %
Risk-free interest rate1.4 %2.4 %2.6 %
Annualized volatility26.1 %25.7 %27.0 %
Expected life (in years)6.06.16.5
Other pricing model inputs:
Weighted-average grant-date market price of CSX stock (strike price)$79.58 $70.01 $54.19 
Schedule of Stock Option Activity
The stock option activity is summarized as follows:
 Stock Options Outstanding
(in Thousands)
Weighted-Average Exercise PriceWeighted-Average Remaining Contractual Life
(in Years)
Aggregate Intrinsic Value
(in Millions)
Outstanding at December 31, 20193,795 $49.78 
Granted 1,339 79.58 
Forfeited (131)72.04 
Exercised(786)37.41 
Outstanding at December 31, 20204,217 $60.88 7.5$126 
Exercisable at December 31, 20201,257 $40.05 6.0$64 
Schedule of Intrinsic Value and Cash Proceeds of Options Exercises There were no significant exercises during 2018. Additional information on stock option exercises is summarized as follows:
(Dollars in Millions)20202019
Intrinsic value of stock options exercised$30 $87 
Cash received from option exercises$29 $45 
Schedule of Restricted Stock Grant and Vesting Information Restricted stock grant and vesting information is summarized as follows:
 Fiscal Years
 202020192018
Weighted-average grant date fair value$79.30 $69.19 $62.60 
Fair value of units and awards vested during fiscal year ended (in millions)
$8 $$
Schedule of Outstanding Restricted Stock Units and Awards
The restricted stock activity related to the outstanding long-term incentive plans and other awards and corresponding fair value is summarized as follows:
 Restricted Stock Units and Awards Outstanding
(in Thousands)
Weighted-Average Fair Value at Grant Date
Unvested at December 31, 2019427 $57.29 
Granted106 79.30 
Forfeited (24)63.12 
Vested (157)48.42 
Unvested at December 31, 2020352 $67.08 
Schedule of Shares Issued under Employee Stock Purchase Plan During 2019 and 2020, the Company issued the following shares under this program.
 Fiscal Years
 20202019
Shares issued (in thousands)242 249 
Weighted average purchase price per share$60.40 $52.72