Employee Benefit Plans

The Company sponsors defined benefit pension plans principally for salaried, management personnel. CSX also sponsors a post-retirement medical plan and a life insurance plan that provide certain benefits to eligible employees hired prior to January 1, 2003. Independent actuaries compute the amounts of liabilities and expenses relating to these plans subject to the assumptions that the Company determines are appropriate based on historical trends, current market rates and future projections. These amounts are reviewed by management.

Only the service cost component of net periodic benefit costs is included in labor and fringe expense on the consolidated income statement. All other components of net periodic benefit cost are included in other income - net or, if related to prior year restructuring activities, as restructuring charge - non-operating.



	Pension Benefits
(Dollars in millions)	Second Quarters						Six Months
	2018			2017			2018			2017
Service Cost Included in Labor and Fringe	$	7		$	9		$	16		$	20

Interest Cost	23			23			46			46
Expected Return on Plan Assets	(43		)	(43		)	(87		)	(85		)
Amortization of Net Loss	10			10			20			21
Total Income Included in Other Income - Net	(10		)	(10		)	(21		)	(18		)

Net Periodic Benefit Cost	$	(3	)	$	(1	)	$	(5	)	$	2

Restructuring Charges - Non Operating (a)	—			7			—			57
Total (Income) Expense	$	(3	)	$	6		$	(5	)	$	59

	Other Post-retirement Benefits
(Dollars in millions)	Second Quarters						Six Months
	2018			2017			2018			2017
Service Cost Included in Labor and Fringe	$	1		$	1		$	1		$	1

Interest Cost	1			2			3			4
Total Expense Included in Other Income - Net	1			2			3			4

Net Periodic Benefit Cost	$	2		$	3		$	4		$	5

Restructuring Charges - Non Operating ^(a)	—			—			—			13
Total Expense	$	2		$	3		$	4		$	18

(a) Charges related to special termination benefits and curtailment costs were the result of the management workforce reductions in first quarter 2017. See Management Workforce Reductions in Note 1. Nature of Operations and Significant Accounting Policies.

Qualified pension plan obligations are funded in accordance with regulatory requirements and with an objective of meeting or exceeding minimum funding requirements necessary to avoid restrictions on flexibility of plan operation and benefit payments. No contributions to the Company's qualified pension plans are required in 2018.