Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill and other intangible asset balances and adjustments to those balances for the years ended December 31, 2023 and 2022:


	Goodwill		Intangible Assets
(Dollars in Millions)	Net Carrying Amount		Cost		Accumulated Amortization		Net Carrying Amount		Total Goodwill and Other Intangible Assets - Net
Balance at December 31, 2021	$	276	$	180	$	(5)	$	175	$	451
Additions	43		18		—		18		61
Amortization	—		—		(10)		(10)		(10)
Balance at December, 31, 2022	$	319	$	198	$	(15)	$	183	$	502
Additions	6		8		—		8		14
Amortization	—		—		(10)		(10)		(10)
Balance at December, 31, 2023	$	325	$	206	$	(25)	$	181	$	506

As a result of the acquisition of Pan Am on June 1, 2022, CSX recognized $17 million of goodwill. The goodwill was calculated as the excess of the consideration paid over the fair value of net assets assumed and relates primarily to the ability of CSX to extend the reach of its service to a wider customer base over an expanded territory, creating new market prospects and efficiencies. Goodwill recognized in this acquisition is not deductible for tax purposes.

During 2023 and 2022, Quality Carriers completed several acquisitions that were immaterial individually and in aggregate. The acquisitions resulted in the addition of $6 million and $26 million of goodwill in 2023 and 2022, respectively. Other intangible assets recognized as part of these acquisitions were $8 million and $18 million in 2023 and 2022, respectively.

The Company's intangible assets balance primarily relates to intangibles recognized as part of the acquisition of Quality Carriers in 2021. Intangible assets recognized from the acquisition of $180 million consist of $150 million of customer relationships and $30 million of trade names that will be amortized over a weighted-average period of 20 years and 15 years, respectively.

During the fourth quarter 2023, the Company changed the date of its annual assessment of Goodwill to October 1st for all reporting units. The change in testing date for goodwill is a change in accounting principle, which management believes is preferable as it will create consistency in the Company's goodwill impairment testing procedures across its reporting units. This change was not material to CSX's consolidated financial statements and it did not delay, accelerate, or avoid any potential goodwill impairment charges. No impairment was recorded as a result of the assessment.