(X)
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
( )
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Commission
File Number 1-8022
|
||||
CSX
CORPORATION
|
||||
(Exact name of registrant as
specified in its charter)
|
||||
Virginia
|
62-1051971
|
|||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|||
500
Water Street, 15th Floor, Jacksonville, FL
|
32202
|
(904)
359-3200
|
||
(Address
of principal executive offices)
|
(Zip
Code)
|
(Telephone
number, including area code)
|
||
No
Change
|
||||
(Former
name, former address and former fiscal year, if changed since last
report.)
|
FORM
10-Q
|
|||
FOR
THE QUARTERLY PERIOD ENDED APRIL 1, 2011
|
|||
INDEX
|
|||
Page
|
|||
PART
I.
|
FINANCIAL
INFORMATION
|
||
Item
1.
|
Financial
Statements……………………………………………………………………………......................................................................................................
|
3
|
|
Quarters
Ended April 1, 2011 and March 26,
2010…………………………….........................................................................................................................
|
3
|
||
At
April 1, 2011 (Unaudited) and December 31,
2010………………………............................................................................................................................
|
4
|
||
Quarters
Ended April 1, 2011 and March 26,
2010…………………………….........................................................................................................................
|
5
|
||
Notes to Consolidated Financial Statements
(Unaudited)……………………...........................................................................................................................
|
6
|
||
Item
2.
|
|||
and
Results of Operations
…………………………………………………………………….......................................................................................................
|
25
|
||
Item
3.
|
Quantitative and Qualitative Disclosures about Market
Risk……………….............................................................................................................................
|
38
|
|
Item
4.
|
Controls and
Procedures……………………………………………………………………….......................................................................................................
|
38
|
|
PART
II.
|
OTHER
INFORMATION
|
||
Item
1.
|
Legal
Proceedings…………………………………………………………………………………..................................................................................................
|
38
|
|
Item
1A.
|
Risk
Factors………………………………………………………………………………………….................................................................................................
|
39
|
|
Item
2.
|
CSX Purchases of Equity
Securities………………………………………………………............................................................................................................
|
40
|
|
Item
3.
|
Defaults upon Senior
Securities……………………………………………………………...........................................................................................................
|
41
|
|
Item
4.
|
Removed and
Reserved………………………………………………………………………….....................................................................................................
|
41
|
|
Item
5.
|
Other
Information…………………………………………………………………………………...................................................................................................
|
41
|
|
Item
6.
|
Exhibits………………………………………………………………………………………………….............................................................................................
|
41
|
|
…………………………………………………………………………………………………….......................................................................................................
|
42
|
First
Quarters
|
|||||
2011
|
2010
|
||||
Revenue
|
$2,810
|
$2,491
|
|||
Expense
|
|||||
Labor
and Fringe
|
765
|
729
|
|||
Materials,
Supplies and Other
|
530
|
519
|
|||
Fuel
|
402
|
283
|
|||
Depreciation
|
243
|
228
|
|||
Equipment
and Other Rents
|
97
|
100
|
|||
Total
Expense
|
2,037
|
1,859
|
|||
Operating
Income
|
773
|
632
|
|||
Interest
Expense
|
(140)
|
(142)
|
|||
Other
Income - Net (Note 8)
|
5
|
11
|
|||
Earnings
Before Income Taxes
|
638
|
501
|
|||
Income
Tax Expense (Note 9)
|
(243)
|
(196)
|
|||
Net
Earnings
|
$395
|
$305
|
|||
Per
Common Share (Note 2)
|
|||||
Net
Earnings Per Share, Basic
|
$1.07
|
$0.78
|
|||
Net
Earnings Per Common Share, Assuming Dilution
|
$1.06
|
$0.78
|
|||
Average
Common Shares Outstanding (Thousands)
|
369,349
|
391,079
|
|||
Average
Common Shares Outstanding, Assuming Dilution (Thousands)
|
371,586
|
394,323
|
|||
Cash
Dividends Paid Per Common Share
|
$0.26
|
$0.24
|
(Unaudited)
|
||||
April
1,
|
December
31,
|
|||
2011
|
2010
|
|||
ASSETS
|
||||
Current
Assets
|
||||
Cash
and Cash Equivalents
|
$534
|
$1,292
|
||
Short-term
Investments
|
56
|
54
|
||
Accounts
Receivable - Net (Note 1)
|
1,068
|
993
|
||
Materials
and Supplies
|
237
|
218
|
||
Deferred
Income Taxes
|
174
|
192
|
||
Other
Current Assets
|
102
|
106
|
||
Total
Current Assets
|
2,171
|
2,855
|
||
Properties
|
32,360
|
32,065
|
||
Accumulated
Depreciation
|
(8,445)
|
(8,266)
|
||
Properties
- Net
|
23,915
|
23,799
|
||
Investment
in Conrail
|
676
|
673
|
||
Affiliates
and Other Companies
|
464
|
461
|
||
Other
Long-term Assets
|
351
|
353
|
||
Total
Assets
|
$27,577
|
$28,141
|
||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||
Current
Liabilities
|
||||
Accounts
Payable
|
$1,024
|
$1,046
|
||
Labor
and Fringe Benefits Payable
|
336
|
520
|
||
Casualty,
Environmental and Other Reserves (Note 4)
|
174
|
176
|
||
Current
Maturities of Long-term Debt (Note 7)
|
503
|
613
|
||
Income
and Other Taxes Payable
|
93
|
85
|
||
Other
Current Liabilities
|
92
|
97
|
||
Total
Current Liabilities
|
2,222
|
2,537
|
||
Casualty,
Environmental and Other Reserves (Note 4)
|
491
|
502
|
||
Long-term
Debt (Note 7)
|
7,637
|
8,051
|
||
Deferred
Income Taxes
|
7,182
|
7,053
|
||
Other
Long-term Liabilities
|
1,289
|
1,298
|
||
Total
Liabilities
|
18,821
|
19,441
|
||
Common
Stock $1 Par Value
|
368
|
370
|
||
Other
Capital
|
-
|
-
|
||
Retained
Earnings
|
9,134
|
9,087
|
||
Accumulated
Other Comprehensive Loss (Note 1)
|
(760)
|
(771)
|
||
Noncontrolling
Interest
|
14
|
14
|
||
Total
Shareholders' Equity
|
8,756
|
8,700
|
||
Total
Liabilities and Shareholders' Equity
|
$27,577
|
$28,141
|
First
Quarters
|
||||||
2011
|
2010
|
|||||
OPERATING
ACTIVITIES
|
||||||
Net
Earnings
|
$395
|
$305
|
||||
Adjustments
to Reconcile Net Earnings to Net Cash Provided
|
||||||
by
Operating Activities:
|
||||||
Depreciation
|
243
|
228
|
||||
Deferred
Income Taxes
|
137
|
46
|
||||
Other
Operating Activities
|
(1)
|
64
|
||||
Changes
in Operating Assets and Liabilities:
|
||||||
Accounts
Receivable
|
(75)
|
24
|
||||
Other
Current Assets
|
(35)
|
(34)
|
||||
Accounts
Payable
|
(17)
|
(26)
|
||||
Income
and Other Taxes Payable
|
40
|
125
|
||||
Other
Current Liabilities
|
(181)
|
12
|
||||
Net
Cash Provided by Operating Activities
|
506
|
744
|
||||
INVESTING
ACTIVITIES
|
||||||
Property
Additions
|
(390)
|
(328)
|
||||
Other
Investing Activities
|
14
|
18
|
||||
Net
Cash Used in Investing Activities
|
(376)
|
(310)
|
||||
FINANCING
ACTIVITIES
|
||||||
Long-term
Debt Repaid (Note 7)
|
(524)
|
(17)
|
||||
Dividends
Paid
|
(96)
|
(93)
|
||||
Stock
Options Exercised (Note 3)
|
19
|
6
|
||||
Shares
Repurchased
|
(300)
|
(229)
|
||||
Other
Financing Activities
|
13
|
(137)
|
||||
Net
Cash Used in Financing Activities
|
(888)
|
(470)
|
||||
Net
Decrease in Cash and Cash Equivalents
|
(758)
|
(36)
|
||||
CASH
AND CASH EQUIVALENTS
|
||||||
Cash
and Cash Equivalents at Beginning of Period
|
1,292
|
1,029
|
||||
Cash
and Cash Equivalents at End of Period
|
$534
|
$993
|
·
|
Consolidated
income statements for the quarter ended April 1, 2011 and March 26,
2010;
|
·
|
Consolidated
balance sheets at April 1, 2011 and December 31, 2010;
and
|
·
|
Consolidated
cash flow statements for the quarter ended April 1, 2011 and March 26,
2010.
|
·
|
The
first fiscal quarter of 2011 and 2010 consisted of 13 weeks from January
1, 2011 through April 1, 2011 and December 26, 2009 through March 26,
2010, respectively. The first week of fiscal year 2010 included
a holiday week and is typically a lower volume
week.
|
·
|
Fiscal
year 2010 consisted of 53 weeks beginning December 26, 2009 through
December 31, 2010. Therefore, the fourth quarter 2010 consisted of 14
weeks.
|
·
|
Fiscal
year 2011 will consist of 52 weeks beginning January 1, 2011 through
December 30, 2011.
|
First
Quarters
|
|||
2011
|
2010
|
||
Numerator
(Dollars in
millions):
|
|||
Net
Earnings
|
$395
|
$305
|
|
Denominator
(Units in
thousands):
|
|||
Average
Common Shares Outstanding
|
369,349
|
391,079
|
|
Other
Potentially Dilutive Common Shares(a)
|
2,237
|
3,244
|
|
Average
Common Shares Outstanding, Assuming Dilution
|
371,586
|
394,323
|
|
Net
Earnings Per Share, Basic
|
$1.07
|
$0.78
|
|
Net
Earnings Per Share, Assuming Dilution
|
$1.06
|
$0.78
|
(a)
|
Other
potentially dilutive common shares include convertible debt, stock
options, common stock equivalents and performance units granted under a
management incentive compensation
plan.
|
·
|
convertible
debt;
|
·
|
employee
stock options; and
|
·
|
other
equity awards, which include long-term incentive
awards.
|
First
Quarters
|
||
(Dollars
in millions)
|
2011
|
2010
|
Share-Based
Compensation Expense (a)
|
$12
|
$23
|
Income
Tax Benefit
|
4
|
9
|
(a)
|
Share-based
compensation expense may fluctuate with estimates of the number of
performance-based awards that are expected to be awarded in future
periods.
|
First
Quarters
|
||
(In
thousands)
|
2011
|
2010
|
Number
of Stock Options Exercised
|
1,093
|
359
|
April
1, 2011
|
December
31, 2010
|
|||||||
(Dollars
in Millions)
|
Current
|
Long-term
|
Total
|
Current
|
Long-term
|
Total
|
||
Casualty:
|
||||||||
Personal
Injury
|
$78
|
$178
|
$256
|
$78
|
$176
|
$254
|
||
Occupational
|
10
|
31
|
41
|
10
|
30
|
40
|
||
Asbestos
|
9
|
65
|
74
|
9
|
72
|
81
|
||
Total
Casualty
|
97
|
274
|
371
|
97
|
278
|
375
|
||
Separation
|
16
|
40
|
56
|
16
|
44
|
60
|
||
Environmental
|
37
|
67
|
104
|
37
|
70
|
107
|
||
Other
|
24
|
110
|
134
|
26
|
110
|
136
|
||
Total
|
$174
|
$491
|
$665
|
$176
|
$502
|
$678
|
·
|
type
of clean-up required;
|
·
|
nature
of the Company’s alleged connection to the location (e.g., generator of
waste sent to the site or owner or operator of the
site);
|
·
|
extent
of the Company’s alleged connection (e.g., volume of waste sent to the
location and other relevant factors);
and
|
·
|
number,
connection and financial viability of other named and unnamed potentially
responsible parties at the
location.
|
Pension
Benefits
|
Other
Post-retirement Benefits
|
|||||
(Dollars
in millions)
|
First
Quarters
|
First
Quarters
|
||||
2011
|
2010
|
2011
|
2010
|
|||
Service
Cost
|
$10
|
$10
|
$1
|
$1
|
||
Interest
Cost
|
30
|
31
|
3
|
5
|
||
Expected
Return on Plan Assets
|
(39)
|
(41)
|
-
|
-
|
||
Amortization
of Net Loss
|
18
|
15
|
1
|
2
|
||
Amortization
of Prior Service Cost
|
-
|
1
|
-
|
-
|
||
Total
Expense
|
$19
|
$16
|
$5
|
$8
|
(Dollars
in millions)
|
Current
Portion
|
Long-term
Portion
|
Total
|
Long-term
debt at December 2010
|
$613
|
$8,051
|
$8,664
|
2011
activity:
|
|||
Long-term
debt repaid
|
(524)
|
-
|
(524)
|
Reclassifications
|
414
|
(414)
|
-
|
Long-term
debt at first quarter 2011
|
$503
|
$7,637
|
$8,140
|
First
Quarters
|
|||
(Dollars
in millions)
|
2011
|
2010
|
|
Interest
Income
|
$1
|
$1
|
|
Income
from Real Estate
|
3
|
7
|
|
Miscellaneous
Income
|
1
|
3
|
|
Total
Other Income - Net
|
$5
|
$11
|
·
|
Level
1 – observable market inputs that are unadjusted quoted prices for
identical assets or liabilities in active
markets
|
·
|
Level
2 – other significant observable inputs (including quoted prices for
similar securities, interest rates, credit risk,
etc.)
|
·
|
Level
3 – significant unobservable inputs (including the Company’s own
assumptions in determining the fair value of
investments)
|
(Dollars
in Millions)
|
April
2011
|
December
2010
|
|||||
Fair
Value
|
$129
|
$123
|
|||||
Amortized
Cost
|
$128
|
$121
|
(Dollars
in Millions)
|
April
2011
|
December
2010
|
||||
Less
than 1 year
|
$46
|
$44
|
||||
1 -
2 years (a)
|
42
|
45
|
||||
2 -
5 years (b)
|
41
|
31
|
||||
Greater
than 5 years
|
-
|
3
|
||||
Total
|
$129
|
$123
|
(a)
|
The
1-2 year category includes callable bonds of approximately $5 million for
both 2011 and 2010, which are classified as short-term investments on the
consolidated balance sheet.
|
(b)
|
The
2-5 year category includes callable bonds of approximately $5 million for
both 2011 and 2010, which are classified as short-term investments on the
consolidated balance sheet.
|
(Dollars
in Millions)
|
April
2011
|
December
2010
|
||||||
Long-term
Debt Including Current Maturities:
|
||||||||
Fair
Value
|
$9,031
|
$9,624
|
||||||
Carrying
Value
|
$8,140
|
$8,664
|
Consolidating
Income Statements
|
||||||
(Dollars
in millions)
|
||||||
First
Quarter 2011
|
CSX
Corporation
|
CSX
Transportation
|
Other
|
Eliminations
|
Consolidated
|
|
Revenue
|
$-
|
$2,794
|
$44
|
$(28)
|
$2,810
|
|
Expense
|
(65)
|
2,142
|
(12)
|
(28)
|
2,037
|
|
Operating
Income
|
65
|
652
|
56
|
-
|
773
|
|
Equity
in Earnings of Subsidiaries
|
452
|
-
|
-
|
(452)
|
-
|
|
Interest
Expense
|
(126)
|
(23)
|
(14)
|
23
|
(140)
|
|
Other
Income - Net
|
4
|
3
|
21
|
(23)
|
5
|
|
Earnings
Before Income Taxes
|
395
|
632
|
63
|
(452)
|
638
|
|
Income
Tax Expense
|
-
|
(241)
|
(2)
|
-
|
(243)
|
|
Net
Earnings
|
$395
|
$391
|
$61
|
$(452)
|
$395
|
|
First
Quarter 2010
|
CSX
Corporation
|
CSX
Transportation
|
Other
|
Eliminations
|
Consolidated
|
|
Revenue
|
$-
|
$2,152
|
$365
|
$(26)
|
$2,491
|
|
Expense
|
(37)
|
1,607
|
315
|
(26)
|
1,859
|
|
Operating
Income
|
37
|
545
|
50
|
-
|
632
|
|
Equity
in Earnings of Subsidiaries
|
397
|
-
|
(36)
|
(361)
|
-
|
|
Interest
Expense
|
(126)
|
(28)
|
(6)
|
18
|
(142)
|
|
Other
Income - Net
|
6
|
18
|
5
|
(18)
|
11
|
|
Earnings
Before Income Taxes
|
314
|
535
|
13
|
(361)
|
501
|
|
Income
Tax Benefit (Expense)
|
(9)
|
(209)
|
22
|
-
|
(196)
|
|
Net
Earnings
|
$305
|
$326
|
$35
|
$(361)
|
$305
|
Consolidating
Balance Sheet
|
|||||||
(Dollars
in millions)
|
|||||||
CSX
|
CSX
|
||||||
As
of First Quarter 2011
|
Corporation
|
Transportation
|
Other
|
Eliminations
|
Consolidated
|
||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
and Cash Equivalents
|
$421
|
$44
|
$69
|
$-
|
$534
|
||
Short-term
Investments
|
-
|
-
|
56
|
-
|
56
|
||
Accounts
Receivable - Net
|
7
|
974
|
727
|
(640)
|
1,068
|
||
Materials
and Supplies
|
-
|
237
|
-
|
-
|
237
|
||
Deferred
Income Taxes
|
-
|
168
|
6
|
-
|
174
|
||
Other
Current Assets
|
58
|
71
|
2
|
(29)
|
102
|
||
Total
Current Assets
|
486
|
1,494
|
860
|
(669)
|
2,171
|
||
Properties
|
8
|
30,818
|
1,534
|
-
|
32,360
|
||
Accumulated
Depreciation
|
(8)
|
(7,562)
|
(875)
|
-
|
(8,445)
|
||
Properties
- Net
|
-
|
23,256
|
659
|
-
|
23,915
|
||
Investments
in Conrail
|
-
|
-
|
676
|
-
|
676
|
||
Affiliates
and Other Companies
|
-
|
599
|
(135)
|
-
|
464
|
||
Investments
in Consolidated Subsidiaries
|
16,548
|
-
|
53
|
(16,601)
|
-
|
||
Other
Long-term Assets
|
169
|
109
|
606
|
(533)
|
351
|
||
Total
Assets
|
$17,203
|
$25,458
|
$2,719
|
$(17,803)
|
$27,577
|
||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
Current
Liabilities
|
|||||||
Accounts
Payable
|
93
|
904
|
30
|
(3)
|
1,024
|
||
Labor
and Fringe Benefits Payable
|
32
|
302
|
2
|
-
|
336
|
||
Payable
to (from) Affiliates
|
997
|
(172)
|
(188)
|
(637)
|
-
|
||
Casualty,
Environmental and Other Reserves
|
-
|
160
|
14
|
-
|
174
|
||
Current
Maturities of Long-term Debt
|
409
|
91
|
3
|
-
|
503
|
||
Income
and Other Taxes Payable
|
382
|
146
|
(435)
|
-
|
93
|
||
Other
Current Liabilities
|
-
|
91
|
30
|
(29)
|
92
|
||
Total
Current Liabilities
|
1,913
|
1,522
|
(544)
|
(669)
|
2,222
|
||
Casualty,
Environmental and Other Reserves
|
-
|
397
|
94
|
-
|
491
|
||
Long-term
Debt
|
6,415
|
1,221
|
1
|
-
|
7,637
|
||
Deferred
Income Taxes
|
(306)
|
7,353
|
135
|
-
|
7,182
|
||
Long-term
Payable to Affiliates
|
-
|
-
|
533
|
(533)
|
-
|
||
Other
Long-term Liabilities
|
439
|
521
|
329
|
-
|
1,289
|
||
Total
Liabilities
|
$8,461
|
$11,014
|
$548
|
$(1,202)
|
$18,821
|
||
Shareholders'
Equity
|
|||||||
Common
Stock, $1 Par Value
|
368
|
181
|
-
|
(181)
|
368
|
||
Other
Capital
|
-
|
5,645
|
1,978
|
(7,623)
|
-
|
||
Retained
Earnings
|
9,134
|
8,660
|
206
|
(8,866)
|
9,134
|
||
Accumulated
Other Comprehensive Loss
|
(760)
|
(64)
|
(61)
|
125
|
(760)
|
||
Noncontrolling
Interest
|
-
|
22
|
48
|
(56)
|
14
|
||
Total
Shareholders' Equity
|
8,742
|
14,444
|
2,171
|
(16,601)
|
8,756
|
||
Total
Liabilities and Shareholders' Equity
|
$17,203
|
$25,458
|
$2,719
|
$(17,803)
|
$27,577
|
Consolidating
Balance Sheet
|
|||||||
(Dollars
in millions)
|
CSX
|
CSX
|
|||||
As
of December 2010
|
Corporation
|
Transportation
|
Other
|
Eliminations
|
Consolidated
|
|
ASSETS
|
||||||
Current
Assets
|
||||||
Cash
and Cash Equivalents
|
$1,100
|
$118
|
$74
|
$-
|
$1,292
|
|
Short-term
Investments
|
-
|
-
|
54
|
-
|
54
|
|
Accounts
Receivable - Net
|
5
|
903
|
618
|
(533)
|
993
|
|
Materials
and Supplies
|
-
|
218
|
-
|
-
|
218
|
|
Deferred
Income Taxes
|
15
|
171
|
6
|
-
|
192
|
|
Other
Current Assets
|
46
|
56
|
36
|
(32)
|
106
|
|
Total
Current Assets
|
1,166
|
1,466
|
788
|
(565)
|
2,855
|
|
Properties
|
8
|
30,557
|
1,500
|
-
|
32,065
|
|
Accumulated
Depreciation
|
(8)
|
(7,405)
|
(853)
|
-
|
(8,266)
|
|
Properties
- Net
|
-
|
23,152
|
647
|
-
|
23,799
|
|
Investments
in Conrail
|
-
|
-
|
673
|
-
|
673
|
|
Affiliates
and Other Companies
|
-
|
595
|
(134)
|
-
|
461
|
|
Investment
in Consolidated Subsidiaries
|
16,278
|
-
|
53
|
(16,331)
|
-
|
|
Other
Long-term Assets
|
174
|
110
|
602
|
(533)
|
353
|
|
Total
Assets
|
$17,618
|
$25,323
|
$2,629
|
$(17,429)
|
$28,141
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||
Current
Liabilities
|
||||||
Accounts
Payable
|
116
|
904
|
28
|
(2)
|
1,046
|
|
Labor
and Fringe Benefits Payable
|
42
|
431
|
47
|
-
|
520
|
|
Payable
to Affiliates
|
894
|
(86)
|
(277)
|
(531)
|
-
|
|
Casualty,
Environmental and Other Reserves
|
-
|
161
|
15
|
-
|
176
|
|
Current
Maturities of Long-term Debt
|
517
|
94
|
2
|
-
|
613
|
|
Income
and Other Taxes Payable
|
377
|
109
|
(401)
|
-
|
85
|
|
Other
Current Liabilities
|
-
|
96
|
33
|
(32)
|
97
|
|
Total
Current Liabilities
|
1,946
|
1,709
|
(553)
|
(565)
|
2,537
|
|
Casualty,
Environmental and Other Reserves
|
-
|
411
|
91
|
-
|
502
|
|
Long-term
Debt
|
6,815
|
1,235
|
1
|
-
|
8,051
|
|
Deferred
Income Taxes
|
(293)
|
7,228
|
118
|
-
|
7,053
|
|
Long-term
Payable to Affiliates
|
-
|
-
|
533
|
(533)
|
-
|
|
Other
Long-term Liabilities
|
464
|
525
|
309
|
-
|
1,298
|
|
Total
Liabilities
|
$8,932
|
$11,108
|
$499
|
$(1,098)
|
$19,441
|
|
Shareholders'
Equity
|
||||||
Common
Stock, $1 Par Value
|
370
|
181
|
-
|
(181)
|
370
|
|
Other
Capital
|
-
|
5,634
|
1,978
|
(7,612)
|
-
|
|
Retained
Earnings
|
9,087
|
8,443
|
165
|
(8,608)
|
9,087
|
|
Accumulated
Other Comprehensive Loss
|
(771)
|
(65)
|
(61)
|
126
|
(771)
|
|
Noncontrolling
Minority Interest
|
-
|
22
|
48
|
(56)
|
14
|
|
Total
Shareholders' Equity
|
8,686
|
14,215
|
2,130
|
(16,331)
|
8,700
|
|
Total
Liabilities and Shareholders' Equity
|
$17,618
|
$25,323
|
$2,629
|
$(17,429)
|
$28,141
|
Consolidating
Cash Flow Statements
|
||||||
(Dollars
in millions)
|
||||||
CSX
|
CSX
|
|||||
First
Quarter 2011
|
Corporation
|
Transportation
|
Other
|
Eliminations
|
Consolidated
|
|
Operating
Activities
|
||||||
Net
Cash Provided by (Used in) Operating Activities
|
$161
|
$720
|
$(201)
|
$(174)
|
$506
|
|
Investing
Activities
|
||||||
Property
Additions
|
-
|
(355)
|
(35)
|
-
|
(390)
|
|
Other
Investing Activities
|
(13)
|
(85)
|
(6)
|
118
|
14
|
|
Net
Cash Used in Investing Activities
|
(13)
|
(440)
|
(41)
|
118
|
(376)
|
|
Financing
Activities
|
||||||
Long-term
Debt Repaid
|
(507)
|
(16)
|
(1)
|
-
|
(524)
|
|
Dividends
Paid
|
(98)
|
(170)
|
2
|
170
|
(96)
|
|
Stock
Options Exercised
|
19
|
-
|
-
|
-
|
19
|
|
Shares
Repurchased
|
(300)
|
-
|
-
|
-
|
(300)
|
|
Other
Financing Activities
|
59
|
(168)
|
236
|
(114)
|
13
|
|
Net
Cash (Used in) Provided by Financing Activities
|
(827)
|
(354)
|
237
|
56
|
(888)
|
|
Net
Decrease in Cash and Cash Equivalents
|
(679)
|
(74)
|
(5)
|
-
|
(758)
|
|
Cash
and Cash Equivalents at Beginning of Period
|
1,100
|
118
|
74
|
-
|
1,292
|
|
Cash
and Cash Equivalents at End of Period
|
$421
|
$44
|
$69
|
$-
|
$534
|
|
CSX
|
CSX
|
|||||
First
Quarter 2010
|
Corporation
|
Transportation
|
Other
|
Eliminations
|
Consolidated
|
|
Operating
Activities
|
||||||
Net
Cash Provided by Operating Activities
|
$98
|
$594
|
$52
|
$-
|
$744
|
|
Investing
Activities
|
||||||
Property
Additions
|
-
|
(308)
|
(20)
|
-
|
(328)
|
|
Other
Investing Activities
|
2
|
(79)
|
7
|
88
|
18
|
|
Net
Cash (Used in) Provided by Investing Activities
|
2
|
(387)
|
(13)
|
88
|
(310)
|
|
Financing
Activities
|
||||||
Long-term
Debt Repaid
|
-
|
(16)
|
(1)
|
-
|
(17)
|
|
Dividends
Paid
|
(95)
|
-
|
2
|
-
|
(93)
|
|
Stock
Options Exercised
|
6
|
-
|
-
|
-
|
6
|
|
Shares
Repurchased
|
(229)
|
-
|
-
|
-
|
(229)
|
|
Other
Financing Activities
|
139
|
(160)
|
(28)
|
(88)
|
(137)
|
|
Net
Cash Used in Financing Activities
|
(179)
|
(176)
|
(27)
|
(88)
|
(470)
|
|
Net
Increase (Decrease) in Cash and Cash Equivalents
|
(79)
|
31
|
12
|
-
|
(36)
|
|
Cash
and Cash Equivalents at Beginning of Period
|
918
|
30
|
81
|
-
|
1,029
|
|
Cash
and Cash Equivalents at End of Period
|
$839
|
$61
|
$93
|
$-
|
$993
|
·
|
Revenue
increased $319 million or 13% to $2.8 billion driven by increases in
volume, core pricing gains and higher fuel
recovery.
|
·
|
Expenses
increased $178 million or 10% to $2.0 billion primarily driven by higher
fuel prices.
|
·
|
Operating
income increased $141 million or 22% to $773 million and operating ratio
improved to 72.5%, which are both first quarter
records.
|
First
Quarters
|
||
(in
thousands)
|
2011
|
2010
|
Volume
|
1,592
|
1,486
|
(in
millions)
|
||
Revenue
|
$2,810
|
$2,491
|
Expense
|
2,037
|
1,859
|
Operating
Income
|
$773
|
$632
|
Operating
Ratio
|
72.5%
|
74.6%
|
First
Quarters
|
||||||
2011
|
2010
|
Improvement/
(Decline)
|
%
|
|||
Safety
and
|
FRA
Personal Injury Frequency Index
|
0.78
|
0.82
|
5
|
%
|
|
Service
|
||||||
Measurements
|
FRA
Train Accident Rate
|
2.57
|
3.36
|
24
|
%
|
|
On-Time
Train Originations
|
66%
|
69%
|
(4)
|
%
|
||
On-Time
Destination Arrivals
|
59%
|
67%
|
(12)
|
%
|
||
Dwell
|
26.6
|
25.8
|
(3)
|
%
|
||
Cars-On-Line
|
212,418
|
214,845
|
1
|
%
|
||
Train
Velocity
|
20.5
|
20.9
|
(2)
|
%
|
||
Increase/
(Decrease)
|
||||||
Resources
|
Route
Miles
|
21,050
|
21,189
|
(1)
|
%
|
|
Locomotives
(owned and long-term leased)
|
4,076
|
4,067
|
-
|
%
|
||
Freight
Cars (owned and long-term leased)
|
78,518
|
82,452
|
(5)
|
%
|
First
Quarters
|
||||||||
2011
|
2010
|
$
Change
|
%
Change
|
|||||
Revenue
|
$2,810
|
$2,491
|
$319
|
13
|
%
|
|||
Expense
|
||||||||
Labor
and Fringe
|
765
|
729
|
36
|
5
|
||||
Materials,
Supplies and Other
|
530
|
519
|
11
|
2
|
||||
Fuel
|
402
|
283
|
119
|
42
|
||||
Depreciation
|
243
|
228
|
15
|
7
|
||||
Equipment
and Other Rents
|
97
|
100
|
(3)
|
(3)
|
||||
Total
Expense
|
2,037
|
1,859
|
178
|
10
|
||||
Operating
Income
|
$773
|
$632
|
$141
|
22
|
||||
Interest
Expense
|
(140)
|
(142)
|
2
|
(1)
|
||||
Other
Income - Net
|
5
|
11
|
(6)
|
(55)
|
||||
Income
Tax Expense
|
(243)
|
(196)
|
(47)
|
24
|
||||
Net
Earnings
|
$395
|
$305
|
$90
|
30
|
||||
Earnings
Per Diluted Share
|
$1.06
|
$0.78
|
$0.28
|
36
|
%
|
|||
Operating
Ratio
|
72.5%
|
74.6%
|
210
bps
|
Volume and
Revenue (Unaudited)(a)
|
|||||||||||||||
Volume
(Thousands of units); Revenue (Dollars in millions); Revenue Per Unit
(Dollars)
|
|||||||||||||||
First
Quarters
|
|||||||||||||||
Volume
|
Revenue
|
Revenue
Per Unit
|
|||||||||||||
2011
|
2010
|
%
Change
|
2011
|
2010
|
%
Change
|
2011
|
2010
|
%
Change
|
|||||||
Agricultural
|
|||||||||||||||
Agricultural
Products
|
109
|
114
|
(4)
|
%
|
$260
|
$267
|
(3)
|
%
|
$2,385
|
$2,342
|
2
|
%
|
|||
Phosphates
and Fertilizers
|
83
|
79
|
5
|
136
|
123
|
11
|
1,639
|
1,557
|
5
|
||||||
Food
and Consumer
|
25
|
25
|
-
|
63
|
59
|
7
|
2,520
|
2,360
|
7
|
||||||
Industrial
|
|||||||||||||||
Chemicals
|
117
|
112
|
4
|
394
|
351
|
12
|
3,368
|
3,134
|
7
|
||||||
Automotive
|
89
|
74
|
20
|
219
|
170
|
29
|
2,461
|
2,297
|
7
|
||||||
Metals
|
67
|
61
|
10
|
148
|
128
|
16
|
2,209
|
2,098
|
5
|
||||||
Housing and Construction
|
|||||||||||||||
Emerging
Markets
|
95
|
85
|
12
|
145
|
130
|
12
|
1,526
|
1,529
|
-
|
||||||
Forest
Products
|
69
|
63
|
10
|
161
|
140
|
15
|
2,333
|
2,222
|
5
|
||||||
Total
Merchandise
|
654
|
613
|
7
|
1,526
|
1,368
|
12
|
2,333
|
2,232
|
5
|
||||||
Coal
|
385
|
373
|
3
|
879
|
736
|
19
|
2,283
|
1,973
|
16
|
||||||
Intermodal(b)
|
553
|
500
|
11
|
332
|
319
|
4
|
600
|
638
|
(6)
|
||||||
Other
|
-
|
-
|
-
|
73
|
68
|
7
|
-
|
-
|
-
|
||||||
Total
|
1,592
|
1,486
|
7
|
%
|
$2,810
|
$2,491
|
13
|
%
|
$1,765
|
$1,676
|
5
|
%
|
(a)
|
Prior
periods have been reclassified to conform to
current presentation.
|
(b)
|
The
revenue-per-unit decline was primarily driven by the continued impact of
terminating the prior purchased transportation
agreement.
|
·
|
Volume-related,
inflation and other expenses were $31 million higher during the
quarter.
|
·
|
Prior
year insurance and legal recoveries of $17 million that did not repeat in
the current quarter.
|
·
|
Offsetting
these increases was reductions of $37 million related to the impact of
terminating the prior intermodal purchased transportation agreement in the
prior year.
|
·
|
projections
and estimates of earnings, revenues, volumes, rates, cost-savings,
expenses, taxes or other financial
items;
|
·
|
expectations
as to results of operations and operational
initiatives;
|
·
|
expectations
as to the effect of claims, lawsuits, environmental costs, commitments,
contingent liabilities, labor negotiations or agreements on the Company’s
financial condition, results of operations or
liquidity;
|
·
|
management’s
plans, strategies and objectives for future operations, capital
expenditures, share repurchases, proposed new services and other similar
expressions concerning matters that are not historical facts, and
management’s expectations as to future performance and operations and the
time by which objectives will be achieved;
and
|
·
|
future
economic, industry or market conditions or performance and their effect on
the Company’s financial condition, results of operations or
liquidity.
|
·
|
legislative,
regulatory or legal developments involving transportation, including rail
or intermodal transportation, the environment, hazardous
materials, taxation, including the outcome of tax claims and
litigation, the potential enactment of initiatives to further regulate the
rail industry and the ultimate outcome of shipper and rate claims subject
to adjudication;
|
·
|
the
outcome of litigation and claims, including, but not limited to, those
related to fuel surcharge, environmental matters, taxes, personal injuries
and occupational illnesses;
|
·
|
changes
in domestic or international economic, political or business conditions,
including those affecting the transportation industry (such as the impact
of industry competition, conditions, performance and consolidation) and
the level of demand for products carried by
CSXT;
|
·
|
natural
events such as severe weather conditions, including floods, fire,
hurricanes and earthquakes, a pandemic crisis affecting the health of the
Company’s employees, its shippers or the consumers of goods, or other
unforeseen disruptions of the Company’s operations, systems, property or
equipment;
|
·
|
competition
from other modes of freight transportation, such as trucking and
competition and consolidation within the transportation industry
generally;
|
·
|
the
cost of compliance with laws and regulations that differ from expectations
(including those associated with PTC implementation) and costs, penalties
and operational impacts associated with noncompliance with applicable laws
or regulations;
|
·
|
the
impact of increased passenger activities in capacity-constrained areas,
including potential effects of high speed rail initiatives, or regulatory
changes affecting when CSXT can transport freight or service
routes;
|
·
|
unanticipated
conditions in the financial markets that may affect timely access to
capital markets and the cost of capital, as well as management’s decisions
regarding share repurchases;
|
·
|
changes
in fuel prices, surcharges for fuel and the availability of
fuel;
|
·
|
availability
of insurance coverage at commercially reasonable rates or insufficient
insurance coverage to cover claims or
damages;
|
·
|
the
inherent business risks associated with safety and security, including the
availability and vulnerability of information technology, adverse economic
or operational effects from actual or threatened war or terrorist
activities and any governmental
response;
|
·
|
labor
and benefit costs and labor difficulties, including stoppages affecting
either the Company’s operations or the customers’ ability to deliver goods
to the Company for shipment;
|
·
|
the
Company’s success in implementing its strategic, financial and operational
initiatives;
|
·
|
changes
in operating conditions and costs or commodity concentrations;
and
|
·
|
the
inherent uncertainty associated with projecting economic and business
conditions.
|
CSX
Purchases of Equity Securities
for
the Quarter
|
||||||
Third
Quarter
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(a)
|
Approximate
Dollar Value of Shares that May Yet Be Purchased Under the Plans or
Programs
|
||
Beginning
Balance
|
$298,286,880
|
|||||
January
|
||||||
(January
1, 2011 - January 28, 2011)
|
796,060
|
$68.61
|
771,500
|
245,422,311
|
||
February
|
||||||
(January
29, 2011 - February 25, 2011)
|
1,624,840
|
72.01
|
1,624,600
|
128,440,283
|
||
March
|
||||||
(February
26, 2011 - April 1, 2011)
|
1,721,960
|
74.58
|
1,721,800
|
20,610
|
||
Ending
Balance
|
4,142,860
|
$72.42
|
4,117,900
|
$20,610
|
|
101*
|
The
following financial information from CSX Corporation’s Quarterly Report on
Form 10-Q for the quarter ended April 1, 2011 filed with the SEC on
April 21, 2011, formatted in XBRL includes: (i) consolidated income
statements for the fiscal periods ended April 1, 2011 and March 26, 2010,
(ii) consolidated balance sheets at April 1, 2011 and December 31, 2010,
(iii) consolidated cash flow statements for the fiscal periods ended April
1, 2011 and March 26, 2010, and (iv) the notes to consolidated financial
statements.
|
1.
|
I
have reviewed this Quarterly Report on Form 10-Q of CSX
Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d)
|
Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
|
5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
|
a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
|
Date: April
20, 2011
|
1.
|
I
have reviewed this Quarterly Report on Form 10-Q of CSX
Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d)
|
Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
|
5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
|
a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
|
Date: April
20, 2011
|
1.
|
The
Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
2.
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
registrant.
|
1.
|
The
Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
2.
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
issuer.
|
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