Summarized Consolidating Financial Data

9 Months Ended

Sep. 30, 2011

Summarized Consolidating Financial Data [Abstract]

In 2007, CSXT sold secured equipment notes maturing in 2023 and in 2008, CSXT sold additional secured equipment notes maturing in 2014 in registered public offerings. CSX has fully and unconditionally guaranteed the notes. In connection with the notes, the Company is providing the following condensed consolidating financial information in accordance with SEC disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation and the allocation of certain expenses of CSX incurred for the benefit of its subsidiaries.

Condensed consolidating financial information for the obligor, CSXT, and parent guarantor, CSX, is as follows:



Consolidating Income Statements
(Dollars in millions)
Third Quarter 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,946		$	17		$	2,963
Expense	(77		)	2,220			(58		)	2,085
Operating Income	77			726			75			878

Equity in Earnings of Subsidiaries	500			(1		)	(499		)	—
Interest (Expense) / Benefit	(123		)	(19		)	4			(138		)
Other Income - Net	3			6			(3		)	6

Earnings Before Income Taxes	457			712			(423		)	746
Income Tax (Expense) / Benefit	7			(266		)	(23		)	(282		)
Net Earnings	$	464		$	446		$	(446	)	$	464

Third Quarter 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	2,650		$	16		$	2,666
Expense	(46		)	1,841			46			1,841
Operating Income	46			809			(30		)	825

Equity in Earnings of Subsidiaries	492			—			(492		)	—
Interest (Expense) / Benefit	(119		)	(22		)	10			(131		)
Other Income - Net	4			17			(13		)	8

Earnings Before Income Taxes	423			804			(525		)	702
Income Tax (Expense) / Benefit	(9		)	(327		)	48			(288		)
Net Earnings	$	414		$	477		$	(477	)	$	414



Consolidating Income Statements
(Dollars in millions)
Nine Months Ended September 30, 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	8,743		$	49		$	8,792
Expense	(210		)	6,584			(159		)	6,215
Operating Income	210			2,159			208			2,577

Equity in Earnings of Subsidiaries	1,472			2			(1,474		)	—
Interest (Expense) / Benefit	(370		)	(64		)	22			(412		)
Other Income - Net	11			8			(8		)	11

Earnings Before Income Taxes	1,323			2,105			(1,252		)	2,176
Income Tax (Expense) / Benefit	42			(782		)	(71		)	(811		)
Net Earnings	$	1,365		$	1,323		$	(1,323	)	$	1,365

Nine Months Ended September 24, 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	7,139		$	681		$	7,820
Expense	(129		)	5,120			604			5,595
Operating Income	129			2,019			77			2,225

Equity in Earnings of Subsidiaries	1,381			—			(1,381		)	—
Interest (Expense) / Benefit	(367		)	(77		)	36			(408		)
Other Income - Net	13			55			(40		)	28

Earnings Before Income Taxes	1,156			1,997			(1,308		)	1,845
Income Tax (Expense) / Benefit	(23		)	(772		)	83			(712		)
Net Earnings	$	1,133		$	1,225		$	(1,225	)	$	1,133



Consolidating Balance Sheet
(Dollars in millions)
As of September 30, 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated

ASSETS
Current Assets
Cash and Cash Equivalents	$	367		$	140		$	73		$	580
Short-term Investments	—			—			61			61
Accounts Receivable - Net	5			446			697			1,148
Receivable from Affiliates	1,199			1,718			(2,917		)	—
Materials and Supplies	—			236			—			236
Deferred Income Taxes	—			160			4			164
Other Current Assets	79			103			(70		)	112
Total Current Assets	1,650			2,803			(2,152		)	2,301

Properties	8			31,501			1,632			33,141
Accumulated Depreciation	(8		)	(7,807		)	(908		)	(8,723		)
Properties - Net	—			23,694			724			24,418

Investments in Conrail	—			—			687			687
Affiliates and Other Companies	—			563			(82		)	481
Investments in Consolidated Subsidiaries	17,232			—			(17,232		)	—
Other Long-term Assets	167			107			87			361
Total Assets	$	19,049		$	27,167		$	(17,968	)	$	28,248

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	148		$	970		$	52		$	1,170
Labor and Fringe Benefits Payable	39			397			38			474
Payable to Affiliates	2,567			574			(3,141		)	—
Casualty, Environmental and Other Reserves	—			186			14			200
Current Maturities of Long-term Debt	404			88			2			494
Income and Other Taxes Payable	529			124			(524		)	129
Other Current Liabilities	—			101			—			101
Total Current Liabilities	3,687			2,440			(3,559		)	2,568

Casualty, Environmental and Other Reserves	—			352			82			434
Long-term Debt	7,008			1,151			1			8,160
Deferred Income Taxes	(583		)	7,655			463			7,535
Other Long-term Liabilities	681			526			76			1,283
Total Liabilities	$	10,793		$	12,124		$	(2,937	)	$	19,980

Shareholders' Equity
Common Stock, $1 Par Value	1,050			181			(181		)	1,050
Other Capital	—			5,650			(5,650		)	—
Retained Earnings	7,944			9,255			(9,255		)	7,944
Accumulated Other Comprehensive Loss	(738		)	(63		)	63			(738		)
Noncontrolling Interest	—			20			(8		)	12
Total Shareholders' Equity	8,256			15,043			(15,031		)	8,268
Total Liabilities and Shareholders' Equity	$	19,049		$	27,167		$	(17,968	)	$	28,248



Consolidating Balance Sheet (Dollars in millions)
As of December 31, 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	1,100		$	118		$	74		$	1,292
Short-term Investments	—			—			54			54
Accounts Receivable - Net	5			447			541			993
Receivable from Affiliates	1,048			943			(1,991		)	—
Materials and Supplies	—			218			—			218
Deferred Income Taxes	15			171			6			192
Other Current Assets	46			56			4			106
Total Current Assets	2,214			1,953			(1,312		)	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			—			(16,278		)	—
Other Long-term Assets	174			110			69			353
Total Assets	$	18,666		$	25,810		$	(16,335	)	$	28,141

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	116		$	904		$	26		$	1,046
Labor and Fringe Benefits Payable	42			431			47			520
Payable to Affiliates	1,942			401			(2,343		)	—
Casualty, Environmental and Other Reserves	—			161			15			176
Current Maturities of Long-term Debt	517			94			2			613
Income and Other Taxes Payable	378			109			(402		)	85
Other Current Liabilities	—			96			1			97
Total Current Liabilities	2,995			2,196			(2,654		)	2,537

Casualty, Environmental and Other Reserves	—			411			91			502
Long-term Debt	6,815			1,235			1			8,051
Deferred Income Taxes	(526		)	7,228			351			7,053
Other Long-term Liabilities	696			525			77			1,298
Total Liabilities	$	9,980		$	11,595		$	(2,134	)	$	19,441

Shareholders' Equity
Common Stock, $1 Par Value	370			181			(181		)	370
Other Capital	—			5,634			(5,634		)	—
Retained Earnings	9,087			8,443			(8,443		)	9,087
Accumulated Other Comprehensive Loss	(771		)	(65		)	65			(771		)
Noncontrolling Minority Interest	—			22			(8		)	14
Total Shareholders' Equity	8,686			14,215			(14,201		)	8,700
Total Liabilities and Shareholders' Equity	$	18,666		$	25,810		$	(16,335	)	$	28,141



Consolidating Cash Flow Statements
(Dollars in millions)
Nine months ended September 30, 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	1,062		$	2,014		$	(491	)	$	2,585

Investing Activities
Property Additions	—			(1,285		)	(151		)	(1,436		)
Other Investing Activities	(19		)	(90		)	144			35
Net Cash Used in Investing Activities	(19		)	(1,375		)	(7		)	(1,401		)

Financing Activities
Long-term Debt Issued	600			—			—			600
Long-term Debt Repaid	(507		)	(86		)	(2		)	(595		)
Dividends Paid	(362		)	(510		)	518			(354		)
Stock Options Exercised	27			—			—			27
Shares Repurchased	(1,564		)	—			—			(1,564		)
Other Financing Activities	30			(21		)	(19		)	(10		)
Net Cash Provided by (Used in) Financing Activities	(1,776		)	(617		)	497			(1,896		)

Net Decrease in Cash and Cash Equivalents	(733		)	22			(1		)	(712		)
Cash and Cash Equivalents at Beginning of Period	1,100			118			74			1,292
Cash and Cash Equivalents at End of Period	$	367		$	140		$	73		$	580


Nine months ended September 24, 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	242		$	2,461		$	(426	)	$	2,277

Investing Activities
Property Additions	—			(1,037		)	(66		)	(1,103		)
Other Investing Activities	(17		)	(86		)	144			41
Net Cash Provided by (Used in) Investing Activities	(17		)	(1,123		)	78			(1,062		)

Financing Activities
Long-term Debt Repaid	—			(101		)	(2		)	(103		)
Dividends Paid	(281		)	(443		)	449			(275		)
Stock Options Exercised	21			—			—			21
Shares Repurchased	(1,123		)	—			—			(1,123		)
Other Financing Activities	703			(713		)	(118		)	(128		)
Net Cash Provided by (Used in) Financing Activities	(680		)	(1,257		)	329			(1,608		)

Net Increase (Decrease) in Cash and Cash Equivalents	(455		)	81			(19		)	(393		)
Cash and Cash Equivalents at Beginning of Period	918			30			81			1,029
Cash and Cash Equivalents at End of Period	$	463		$	111		$	62		$	636