Summarized Consolidating Financial Data

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:

NOTE 16. Summarized Consolidating Financial Data, continued

Consolidating Income Statements

(Dollars in Millions)



Fiscal Year Ended December 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Revenue	$	—		$	11,689		$	67		$	11,756
Expense	(355		)	8,779			(125		)	8,299
Operating Income	355			2,910			192			3,457
Equity in Earnings of Subsidiaries	1,988			(2		)	(1,986		)	—
Interest Expense	(513		)	(70		)	17			(566		)
Other Income - Net	(3		)	61			15			73
Earnings Before Income Taxes	1,827			2,899			(1,762		)	2,964
Income Tax Benefit (Expense)	32			(1,062		)	(75		)	(1,105		)
Net Earnings	$	1,859		$	1,837		$	(1,837	)	$	1,859

Total Comprehensive Earnings	$	1,798		$	1,814		$	(1,814	)	$	1,798

Fiscal Year Ended December 2011
Revenue	$	—		$	11,676		$	67		$	11,743
Expense	(278		)	8,679			(76		)	8,325
Operating Income	278			2,997			143			3,418
Equity in Earnings of Subsidiaries	1,947			3			(1,950		)	—
Interest Expense	(496		)	(83		)	27			(552		)
Other Income - Net	2			19			1			22
Earnings Before Income Taxes	1,731			2,936			(1,779		)	2,888
Income Tax Benefit (Expense)	91			(1,081		)	(76		)	(1,066		)
Net Earnings	$	1,822		$	1,855		$	(1,855	)	$	1,822

Total Comprehensive Earnings	$	1,718		$	1,841		$	(1,841	)	$	1,718

Fiscal Year Ended December 2010
Revenue	$	—		$	9,939		$	697		$	10,636
Expense	(166		)	7,110			621			7,565
Operating Income	166			2,829			76			3,071
Equity in Earnings of Subsidiaries	1,779			3			(1,782		)	—
Interest Expense	(499		)	(101		)	43			(557		)
Other Income - Net	13			22			(3		)	32
Earnings Before Income Taxes	1,459			2,753			(1,666		)	2,546
Income Tax Benefit (Expense)	104			(1,064		)	(23		)	(983		)
Net Earnings	$	1,563		$	1,689		$	(1,689	)	$	1,563

Total Comprehensive Earnings	$	1,601		$	1,701		$	(1,701	)	$	1,601

NOTE 16. Summarized Consolidating Financial Data, continued

Consolidating Balance Sheets

(Dollars in Millions)



As of December 28, 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets:
Cash and Cash Equivalents	$	481		$	235		$	68		$	784
Short-term Investments	555			—			32			587
Accounts Receivable - Net	3			427			532			962
Receivable from Affiliates	993			1,798			(2,791		)	—
Materials and Supplies	—			274			—			274
Deferred Income Taxes	52			62			5			119
Other Current Assets	11			64			—			75
Total Current Assets	2,095			2,860			(2,154		)	2,801
Properties	8			33,333			1,938			35,279
Accumulated Depreciation	(8		)	(8,225		)	(996		)	(9,229		)
Properties - Net	—			25,108			942			26,050
Investments in Conrail	—			—			695			695
Affiliates and Other Companies	(39		)	593			(43		)	511
Investment in Consolidated Subsidiaries	18,783			—			(18,783		)	—
Other Long-term Assets	186			368			(40		)	514
Total Assets	$	21,025		$	28,929		$	(19,383	)	$	30,571

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable	$	133		$	846		$	35		$	1,014
Labor and Fringe Benefits Payable	35			391			42			468
Payable to Affiliates	2,679			411			(3,090		)	—
Casualty, Environmental and Other Reserves	—			124			16			140
Current Maturities of Long-term Debt	700			80			—			780
Income and Other Taxes Payable	(262		)	334			13			85
Other Current Liabilities	(1		)	139			2			140
Total Current Liabilities	3,284			2,325			(2,982		)	2,627
Casualty, Environmental and Other Reserves	—			256			81			337
Long-term Debt	8,005			1,047			—			9,052
Deferred Income Taxes	(153		)	8,131			118			8,096
Other Long-term Liabilities	901			656			(100		)	1,457
Total Liabilities	12,037			12,415			(2,883		)	21,569
Shareholders' Equity:
Common Stock, $1 Par Value	1,020			181			(181		)	1,020
Other Capital	28			5,672			(5,672		)	28
Retained Earnings	8,876			10,740			(10,740		)	8,876
Accumulated Other Comprehensive Loss	(936		)	(102		)	102			(936		)
Noncontrolling Minority Interest	—			23			(9		)	14
Total Shareholders' Equity	8,988			16,514			(16,500		)	9,002
Total Liabilities and Shareholders' Equity	$	21,025		$	28,929		$	(19,383	)	$	30,571

NOTE 16. Summarized Consolidating Financial Data, continued

Consolidating Balance Sheets

(Dollars in Millions)



As of December 30, 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
ASSETS
Current Assets
Cash and Cash Equivalents	$	549		$	154		$	80		$	783
Short-term Investments	475			—			48			523
Accounts Receivable - Net	4			339			657			1,000
Receivable from Affiliates	1,025			1,772			(2,797		)	—
Materials and Supplies	—			240			—			240
Deferred Income Taxes	10			173			(1		)	182
Other Current Assets	17			64			(3		)	78
Total Current Assets	2,080			2,742			(2,016		)	2,806
Properties	8			31,958			1,738			33,704
Accumulated Depreciation	(8		)	(7,795		)	(927		)	(8,730		)
Properties - Net	—			24,163			811			24,974
Investments in Conrail	—			—			678			678
Affiliates and Other Companies	(39		)	574			(42		)	493
Investment in Consolidated Subsidiaries	17,519			—			(17,519		)	—
Other Long-term Assets	176			109			108			393
Total Assets	$	19,736		$	27,588		$	(17,980	)	$	29,344

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	114		$	849		$	55		$	1,018
Labor and Fringe Benefits Payable	41			458			42			541
Payable to Affiliates	2,566			374			(2,940		)	—
Casualty, Environmental and Other Reserves	—			151			16			167
Current Maturities of Long-term Debt	400			105			2			507
Income and Other Taxes Payable	(60		)	189			—			129
Other Current Liabilities	(1		)	194			3			196
Total Current Liabilities	3,060			2,320			(2,822		)	2,558
Casualty, Environmental and Other Reserves	—			284			68			352
Long-term Debt	7,609			1,124			1			8,734
Deferred Income Taxes	(246		)	7,800			47			7,601
Other Long-term Liabilities	858			667			106			1,631
Total Liabilities	11,281			12,195			(2,600		)	20,876
Shareholders' Equity
Common Stock, $1 Par Value	1,049			181			(181		)	1,049
Other Capital	6			5,652			(5,652		)	6
Retained Earnings	8,275			9,618			(9,618		)	8,275
Accumulated Other Comprehensive Loss	(875		)	(79		)	79			(875		)
Noncontrolling Minority Interest	—			21			(8		)	13
Total Shareholders' Equity	8,455			15,393			(15,380		)	8,468
Total Liabilities and Shareholders' Equity	$	19,736		$	27,588		$	(17,980	)	$	29,344

NOTE 16. Summarized Consolidating Financial Data, continued

Consolidating Cash Flow Statements

(Dollars in Millions)



Fiscal Year Ended December 2012	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	579		$	2,716		$	(349	)	$	2,946

Investing Activities
Property Additions	—			(2,104		)	(237		)	(2,341		)
Purchases of Short-term Investments	(605		)	—			(28		)	(633		)
Proceeds from Sales of Short-term Investments	525			—			56			581
Proceeds from Property Dispositions	—			186			—			186
Other Investing Activities	(10		)	102			(162		)	(70		)
Net Cash Provided by (Used in) Investing Activities	(90		)	(1,816		)	(371		)	(2,277		)

Financing Activities
Long-term Debt Issued	1,100			—			—			1,100
Long-term Debt Repaid	(400		)	(106		)	(2		)	(508		)
Dividends Paid	(558		)	(715		)	715			(558		)
Stock Options Exercised	14			—			—			14
Shares Repurchased	(734		)	—			—			(734		)
Other Financing Activities	21			2			(5		)	18
Net Cash Provided by (Used in) Financing Activities	(557		)	(819		)	708			(668		)
Net Increase (Decrease) in Cash and Cash Equivalents	(68		)	81			(12		)	1
Cash and Cash Equivalents at Beginning of Period	549			154			80			783
Cash and Cash Equivalents at End of Period	$	481		$	235		$	68		$	784

NOTE 16. Summarized Consolidating Financial Data, continued

Consolidating Cash Flow Statements

(Dollars in Millions)



Fiscal Year Ended December 2011	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	1,231		$	2,746		$	(486	)	$	3,491

Investing Activities
Property Additions	—			(2,034		)	(263		)	(2,297		)
Purchases of Short-term Investments	(475		)	—			(17		)	(492		)
Proceeds from Sales of Short-term Investments	—			—			74			74
Proceeds from Property Dispositions	—			239			1			240
Other Investing Activities	(20		)	(133		)	41			(112		)
Net Cash Provided by (Used in) Investing Activities	(495		)	(1,928		)	(164		)	(2,587		)

Financing Activities
Long-term Debt Issued	1,200			—			—			1,200
Long-term Debt Repaid	(507		)	(95		)	(3		)	(605		)
Dividends Paid	(480		)	(680		)	680			(480		)
Stock Options Exercised	29			—			—			29
Shares Repurchased	(1,564		)	—			—			(1,564		)
Other Financing Activities	35			(7		)	(21		)	7
Net Cash Provided by (Used in) Financing Activities	(1,287		)	(782		)	656			(1,413		)
Net Increase (Decrease) in Cash and Cash Equivalents	(551		)	36			6			(509		)
Cash and Cash Equivalents at Beginning of Period	1,100			118			74			1,292
Cash and Cash Equivalents at End of Period	$	549		$	154		$	80		$	783

NOTE 16. Summarized Consolidating Financial Data, continued

Consolidating Cash Flow Statements

(Dollars in Millions)



Fiscal Year Ended December 2010	CSX Corporation			CSX Transportation			Eliminations and Other			Consolidated
Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	944		$	2,393		$	(76	)	$	3,261

Investing Activities
Property Additions	—			(1,587		)	(253		)	(1,840		)
Purchases of Short-term Investments	—			—			—			—
Proceeds from Sales of Short-term Investments	—			—			41			41
Proceeds from Property Dispositions	—			107			1			108
Other Investing Activities	301			(110		)	(271		)	(80		)
Net Cash Provided by (Used in) Investing Activities	301			(1,590		)	(482		)	(1,771		)

Financing Activities
Long-term Debt Issued	800			—			—			800
Long-term Debt Repaid	—			(111		)	(2		)	(113		)
Dividends Paid	(372		)	(590		)	590			(372		)
Stock Options Exercised	42			—			—			42
Shares Repurchased	(1,452		)	—			—			(1,452		)
Other Financing Activities	(81		)	(14		)	(37		)	(132		)
Net Cash Provided by (Used in) Financing Activities	(1,063		)	(715		)	551			(1,227		)
Net Increase (Decrease) in Cash and Cash Equivalents	182			88			(7		)	263
Cash and Cash Equivalents at Beginning of Period	918			30			81			1,029
Cash and Cash Equivalents at End of Period	$	1,100		$	118		$	74		$	1,292