Cover
Cover | 9 Months Ended |
Sep. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2021 |
Document Transition Report | false |
Entity File Number | 1-8022 |
Entity Registrant Name | CSX CORPORATION |
Entity Incorporation, State or Country Code | VA |
Entity Tax Identification Number | 62-1051971 |
Entity Address, Address Line One | 500 Water Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | Jacksonville |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32202 |
City Area Code | 904 |
Local Phone Number | 359-3200 |
Title of 12(b) Security | Common Stock, $1 Par Value |
Trading Symbol | CSX |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 2,217,983,411 |
Entity Central Index Key | 0000277948 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||||
Income Statement | |||||||
Revenue | $ 3,292 | $ 2,648 | $ 9,095 | $ 7,758 | |||
Expense | |||||||
Labor and Fringe | 631 | 574 | 1,847 | 1,687 | |||
Purchased Services and Other | [1] | 577 | 382 | 1,490 | 1,272 | ||
Depreciation | 367 | 348 | 1,060 | 1,036 | |||
Fuel | 247 | 119 | 631 | 402 | |||
Equipment and Other Rents | 94 | 88 | 269 | 247 | |||
Gains on Property Dispositions | (60) | (4) | (430) | (33) | |||
Total Expense | 1,856 | 1,507 | 4,867 | 4,611 | |||
Operating Income | 1,436 | 1,141 | 4,228 | 3,147 | |||
Interest Expense | (177) | (187) | (542) | (565) | |||
Other Income - Net | 20 | 14 | 60 | 51 | |||
Earnings Before Income Taxes | 1,279 | 968 | 3,746 | 2,633 | |||
Income Tax Expense | (311) | (232) | (899) | (628) | |||
Net Earnings | $ 968 | $ 736 | $ 2,847 | $ 2,005 | |||
Per Common Share | |||||||
Net Earnings Per Share, Basic (in dollars per share) | $ 0.43 | $ 0.32 | [2] | $ 1.26 | $ 0.87 | [2] | |
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 0.43 | $ 0.32 | [2] | $ 1.26 | $ 0.87 | [2] | |
Average Shares Outstanding (in shares) | 2,237 | 2,295 | [2] | 2,263 | 2,302 | [2] | |
Average Shares Outstanding, Assuming Dilution (in shares) | 2,242 | 2,300 | [2] | 2,268 | 2,307 | [2] | |
[1] | Beginning third quarter 2021, the Company changed the name of Materials, Supplies and Other expense to Purchased Services and Other , which better describes the composition of this expense amount. This change in naming convention does not impact previously reported results. | ||||||
[2] | All prior period share and per share data has been retroactively adjusted to reflect the stock split effective June 28, 2021. Certain prior year data has been reclassified to conform to the current presentation. |
CONDENSED CONSOLIDATED COMPREHE
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Total Comprehensive Earnings (Note 11) | $ 985 | $ 1,152 | $ 774 | $ 770 | $ 519 | $ 773 | $ 2,911 | $ 2,062 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Current Assets: | |||
Cash and Cash Equivalents | $ 2,179 | $ 3,129 | |
Accounts Receivable - Net (Note 8) | 1,326 | 912 | |
Materials and Supplies | 303 | 302 | |
Other Current Assets | 89 | 98 | |
Total Current Assets | 3,897 | 4,441 | |
Properties | 46,226 | 45,530 | |
Accumulated Depreciation | (13,412) | (13,086) | |
Properties - Net | 32,814 | 32,444 | |
Investment in Affiliates and Other Companies | 2,059 | 1,985 | |
Right-of-Use Lease Asset | 508 | 472 | |
Goodwill and Other Intangible Assets - Net | 451 | 63 | |
Other Long-term Assets | 400 | 388 | |
Total Assets | 40,129 | 39,793 | |
Current Liabilities: | |||
Accounts Payable | 972 | 809 | |
Labor and Fringe Benefits Payable | 548 | 482 | |
Casualty, Environmental and Other Reserves (Note 4) | 117 | 90 | |
Current Maturities of Long-term Debt (Note 7) | 211 | 401 | |
Income and Other Taxes Payable | 238 | 73 | |
Other Current Liabilities | 182 | 164 | |
Total Current Liabilities | 2,268 | 2,019 | |
Casualty, Environmental and Other Reserves (Note 4) | 252 | 224 | |
Long-term Debt (Note 7) | 16,182 | 16,304 | |
Deferred Income Taxes - Net | 7,298 | 7,168 | |
Long-term Lease Liability | 482 | 455 | |
Other Long-term Liabilities | 475 | 513 | |
Total Liabilities | 26,957 | 26,683 | |
Shareholders' Equity: | |||
Common Stock, $1 Par Value | 2,218 | 2,288 | [1] |
Other Capital | 24 | 152 | [1] |
Retained Earnings | 11,455 | 11,259 | [1] |
Accumulated Other Comprehensive Loss (Note 11) | (534) | (598) | |
Non-controlling Minority Interest | 9 | 9 | |
Total Shareholders' Equity | 13,172 | 13,110 | |
Total Liabilities and Shareholders' Equity | $ 40,129 | $ 39,793 | |
[1] | Certain prior year data has been retroactively adjusted to reflect the stock split effective June 28, 2021 or reclassified to conform to the current presentation. See accompanying notes to consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net Earnings | $ 2,847 | $ 2,005 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||
Depreciation | 1,060 | 1,036 |
Deferred Income Taxes | 109 | 117 |
Gains on Property Dispositions | (430) | (33) |
Other Operating Activities | 10 | (30) |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | (153) | 12 |
Other Current Assets | (4) | (37) |
Accounts Payable | 132 | (6) |
Income and Other Taxes Payable | 174 | 98 |
Other Current Liabilities | 74 | (34) |
Net Cash Provided by Operating Activities | 3,819 | 3,128 |
INVESTING ACTIVITIES | ||
Property Additions | (1,220) | (1,209) |
Proceeds from Property Dispositions | 297 | 51 |
Purchases of Short-term Investments | 0 | (426) |
Proceeds from Sales of Short-term Investments | 3 | 1,423 |
Business Acquisition, Net of Cash Acquired | (543) | 0 |
Other Investing Activities | 0 | (32) |
Net Cash Used In Investing Activities | (1,463) | (193) |
FINANCING ACTIVITIES | ||
Shares Repurchased | (2,316) | (664) |
Dividends Paid | (633) | (599) |
Long-term Debt Repaid (Note 7) | (390) | (245) |
Long-term Debt Issued (Note 7) | 0 | 500 |
Other Financing Activities | 33 | 13 |
Net Cash Used in Financing Activities | (3,306) | (995) |
Net (Decrease)/Increase in Cash and Cash Equivalents | (950) | 1,940 |
CASH AND CASH EQUIVALENTS | ||
Cash and Cash Equivalents at Beginning of Period | 3,129 | 958 |
Cash and Cash Equivalents at End of Period | $ 2,179 | $ 2,898 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Common Shares Outstanding | Common Stock and Other Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Minority Interest | |||||
Beginning Balance (in shares) at Dec. 31, 2019 | [1] | 2,320,414 | |||||||||
Beginning Balance at Dec. 31, 2019 | $ 11,863 | $ 2,412 | [1] | $ 10,111 | [1] | $ (675) | [2] | $ 15 | |||
Comprehensive Earnings: | |||||||||||
Net Earnings | 770 | 770 | [1] | ||||||||
Other Comprehensive Income (Loss) | 3 | 3 | [2] | ||||||||
Total Comprehensive Earnings | 773 | ||||||||||
Common stock dividends, per share | (201) | (201) | [1] | ||||||||
Share Repurchases (in shares) | [1] | (26,718) | |||||||||
Share Repurchases | (577) | (27) | [1] | (550) | [1] | ||||||
Stock Option Exercises and Other (in shares) | [1] | 2,680 | |||||||||
Stock Option Exercises and Other | 30 | 21 | [1] | 7 | [1] | 2 | |||||
Ending balance (in shares) at Mar. 31, 2020 | [1] | 2,296,376 | |||||||||
Ending Balance at Mar. 31, 2020 | 11,888 | 2,406 | [1] | 10,137 | [1] | (672) | [2] | 17 | |||
Beginning Balance (in shares) at Dec. 31, 2019 | [1] | 2,320,414 | |||||||||
Beginning Balance at Dec. 31, 2019 | 11,863 | 2,412 | [1] | 10,111 | [1] | (675) | [2] | 15 | |||
Comprehensive Earnings: | |||||||||||
Net Earnings | 2,005 | ||||||||||
Total Comprehensive Earnings | $ 2,062 | ||||||||||
Share Repurchases (in shares) | (31,000) | ||||||||||
Ending balance (in shares) at Sep. 30, 2020 | [1] | 2,294,325 | |||||||||
Ending Balance at Sep. 30, 2020 | $ 12,727 | 2,438 | [1] | 10,893 | [1] | (618) | [2] | 14 | |||
Comprehensive Earnings: | |||||||||||
Associated tax of accumulated other comprehensive loss balances | 183 | ||||||||||
Beginning Balance (in shares) at Mar. 31, 2020 | [1] | 2,296,376 | |||||||||
Beginning Balance at Mar. 31, 2020 | 11,888 | 2,406 | [1] | 10,137 | [1] | (672) | [2] | 17 | |||
Comprehensive Earnings: | |||||||||||
Net Earnings | 499 | 499 | [1] | ||||||||
Other Comprehensive Income (Loss) | 20 | 20 | [2] | ||||||||
Total Comprehensive Earnings | 519 | ||||||||||
Common stock dividends, per share | (199) | (199) | [1] | ||||||||
Share Repurchases (in shares) | [1] | (1,739) | |||||||||
Share Repurchases | (39) | (2) | [1] | (37) | [1] | ||||||
Bond Conversions | 0 | ||||||||||
Stock Option Exercises and Other (in shares) | [1] | 522 | |||||||||
Stock Option Exercises and Other | (6) | (4) | [1] | 2 | [1] | (4) | |||||
Ending balance (in shares) at Jun. 30, 2020 | [1] | 2,295,159 | |||||||||
Ending Balance at Jun. 30, 2020 | 12,163 | 2,400 | [1] | 10,402 | [1] | (652) | [2] | 13 | |||
Comprehensive Earnings: | |||||||||||
Associated tax of accumulated other comprehensive loss balances | 178 | ||||||||||
Net Earnings | 736 | 736 | [1] | ||||||||
Other Comprehensive Income (Loss) | 34 | 34 | [2] | ||||||||
Total Comprehensive Earnings | 770 | ||||||||||
Common stock dividends, per share | $ (199) | (199) | [1] | ||||||||
Share Repurchases (in shares) | (2,000) | (2,115) | [1] | ||||||||
Share Repurchases | $ (48) | (2) | [1] | (46) | [1] | ||||||
Bond Conversions | 0 | ||||||||||
Stock Option Exercises and Other (in shares) | [1] | 1,281 | |||||||||
Stock Option Exercises and Other | 41 | 40 | [1] | 1 | |||||||
Ending balance (in shares) at Sep. 30, 2020 | [1] | 2,294,325 | |||||||||
Ending Balance at Sep. 30, 2020 | 12,727 | 2,438 | [1] | 10,893 | [1] | (618) | [2] | 14 | |||
Comprehensive Earnings: | |||||||||||
Associated tax of accumulated other comprehensive loss balances | 165 | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | [1] | 2,287,587 | |||||||||
Beginning Balance at Dec. 31, 2020 | 13,110 | 2,440 | [1] | 11,259 | [1] | (598) | [3] | 9 | |||
Comprehensive Earnings: | |||||||||||
Net Earnings | 706 | 706 | |||||||||
Other Comprehensive Income (Loss) | 68 | 68 | [3] | ||||||||
Total Comprehensive Earnings | 774 | ||||||||||
Common stock dividends, per share | (213) | (213) | |||||||||
Share Repurchases (in shares) | (18,389) | ||||||||||
Share Repurchases | (551) | (18) | (533) | ||||||||
Stock Option Exercises and Other (in shares) | 3,003 | ||||||||||
Stock Option Exercises and Other | 40 | 37 | 3 | ||||||||
Ending balance (in shares) at Mar. 31, 2021 | 2,272,201 | ||||||||||
Ending Balance at Mar. 31, 2021 | 13,160 | 2,459 | 11,222 | (530) | [3] | 9 | |||||
Beginning Balance (in shares) at Dec. 31, 2020 | [1] | 2,287,587 | |||||||||
Beginning Balance at Dec. 31, 2020 | 13,110 | 2,440 | [1] | 11,259 | [1] | (598) | [3] | 9 | |||
Comprehensive Earnings: | |||||||||||
Net Earnings | 2,847 | ||||||||||
Other Comprehensive Income (Loss) | 64 | ||||||||||
Total Comprehensive Earnings | $ 2,911 | ||||||||||
Share Repurchases (in shares) | (74,000) | ||||||||||
Ending balance (in shares) at Sep. 30, 2021 | 2,217,983 | ||||||||||
Ending Balance at Sep. 30, 2021 | $ 13,172 | 2,242 | 11,455 | (534) | [3] | 9 | |||||
Comprehensive Earnings: | |||||||||||
Associated tax of accumulated other comprehensive loss balances | 137 | ||||||||||
Beginning Balance (in shares) at Mar. 31, 2021 | 2,272,201 | ||||||||||
Beginning Balance at Mar. 31, 2021 | 13,160 | 2,459 | 11,222 | (530) | [3] | 9 | |||||
Comprehensive Earnings: | |||||||||||
Net Earnings | 1,173 | 1,173 | |||||||||
Other Comprehensive Income (Loss) | (21) | (21) | [3] | ||||||||
Total Comprehensive Earnings | 1,152 | ||||||||||
Common stock dividends, per share | (212) | (212) | |||||||||
Share Repurchases (in shares) | (18,345) | ||||||||||
Share Repurchases | (701) | (19) | (682) | ||||||||
Bond Conversions | 0 | ||||||||||
Stock Option Exercises and Other (in shares) | 640 | ||||||||||
Stock Option Exercises and Other | 35 | (186) | 222 | (1) | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 2,254,496 | ||||||||||
Ending Balance at Jun. 30, 2021 | 13,434 | 2,254 | 11,723 | (551) | [3] | 8 | |||||
Comprehensive Earnings: | |||||||||||
Associated tax of accumulated other comprehensive loss balances | 142 | ||||||||||
Net Earnings | 968 | 968 | |||||||||
Other Comprehensive Income (Loss) | 17 | 17 | [3] | ||||||||
Total Comprehensive Earnings | 985 | ||||||||||
Common stock dividends, per share | $ (209) | (209) | |||||||||
Share Repurchases (in shares) | (34,000) | (37,217) | |||||||||
Share Repurchases | $ (1,064) | (37) | (1,027) | ||||||||
Bond Conversions | 0 | ||||||||||
Stock Option Exercises and Other (in shares) | 704 | ||||||||||
Stock Option Exercises and Other | 26 | 25 | 1 | ||||||||
Ending balance (in shares) at Sep. 30, 2021 | 2,217,983 | ||||||||||
Ending Balance at Sep. 30, 2021 | $ 13,172 | $ 2,242 | $ 11,455 | (534) | [3] | $ 9 | |||||
Comprehensive Earnings: | |||||||||||
Associated tax of accumulated other comprehensive loss balances | $ 136 | ||||||||||
[1] | All prior period share and per share data has been retroactively adjusted to reflect the stock split effective June 28, 2021. Certain prior year data has been reclassified to conform to the current presentation. | ||||||||||
[2] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $183 million, $178 million, and $165 million as of first, second, and third quarters 2020, respectively. For additional information, see Note 11, Other Comprehensive Income. | ||||||||||
[3] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $137 million, $142 million, and $136 million as of first, second, and third quarters 2021, respectively. For additional information, see Note 11, Other Comprehensive Income. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | [1] | ||
Statement of Stockholders' Equity [Abstract] | |||||||||||
Common stock dividends (in dollars per share) | $ 0.28 | $ 0.093 | $ 0.093 | $ 0.093 | $ 0.093 | $ 0.087 | [1] | $ 0.087 | [1] | $ 0.087 | |
Bond Conversions | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
[1] | All prior period share and per share data has been retroactively adjusted to reflect the stock split effective June 28, 2021. Certain prior year data has been reclassified to conform to the current presentation. |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Significant Accounting Policies | Nature of Operations and Significant Accounting Policies Background CSX Corporation together with its subsidiaries ("CSX" or the “Company”), based in Jacksonville, Florida, is one of the nation's leading transportation companies. The Company provides rail-based transportation services including traditional rail service, the transport of intermodal containers and trailers, as well as other transportation services such as rail-to-truck transfers and bulk commodity operations. CSX's principal operating subsidiary, CSX Transportation, Inc. (“CSXT”), provides an important link to the transportation supply chain through its approximately 19,500 route mile rail network, which serves major population centers in 23 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec. The Company's intermodal business links customers to railroads via trucks and terminals. CSXT is also responsible for the Company's real estate sales, leasing, acquisition and management and development activities. Substantially all of these activities are focused on supporting railroad operations. Other entities In addition to CSXT, the Company’s subsidiaries include Quality Carriers, Inc. ("Quality Carriers"), CSX Intermodal Terminals, Inc. (“CSX Intermodal Terminals”), Total Distribution Services, Inc. (“TDSI”), Transflo Terminal Services, Inc. (“Transflo”), CSX Technology, Inc. (“CSX Technology”) and other subsidiaries. Effective July 1, 2021, CSX acquired Quality Carriers, the largest provider of bulk liquid chemicals truck transportation in North America, from Quality Distribution, Inc. For further details, refer to Note 12, Business Combinations. CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States and also performs drayage services (the pickup and delivery of intermodal shipments) for certain customers. TDSI serves the automotive industry with distribution centers and storage locations. Transflo connects non-rail served customers to the many benefits of rail by transferring products from rail to trucks. The biggest Transflo markets are chemicals and agriculture, which includes shipments of plastics and ethanol. CSX Technology and other subsidiaries provide support services for the Company. Sale of Property Rights to the Commonwealth of Virginia On March 26, 2021, the Company entered into a comprehensive agreement to sell certain property rights in three CSX-owned line segments to the Commonwealth of Virginia (“Commonwealth”) over three phases for a total of $525 million. In April 2021, in the first phase of the transaction, the Company closed on the conveyance of a permanent land easement for passenger rail operations, resulting in a $349 million gain recognized in gains on property dispositions on the consolidated income statement. Upon closing of the first phase, cash proceeds of $200 million were received and a receivable was recorded in the amount of $168 million. The Company expects to collect proceeds of $200 million in fourth quarter 2021, partly attributable to the first phase with the remainder towards the next phase. Additional future proceeds and related gains attributable to this conveyance are subject to state funding. The Company anticipates closing on the remaining conveyances by the end of 2022, which will result in future cash proceeds and gains. The timing of future gain recognition is dependent upon the timing of future conveyances as well as collectability. As of September 30, 2021, the carrying values of the remaining assets subject to this transaction were not material. NOTE 1. Nature of Operations and Significant Accounting Policies, continued Basis of Presentation In the opinion of management, the accompanying consolidated financial statements contain all normal, recurring adjustments necessary to fairly present the consolidated financial statements and accompanying notes. Where applicable, prior year information has been reclassified to conform to the current presentation. Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted from these interim financial statements. CSX suggests that these financial statements be read in conjunction with the audited financial statements and the notes included in CSX's most recent annual report on Form 10-K and any subsequently filed current reports on Form 8-K. Common Stock Split On June 4, 2021, CSX announced a three-for-one split of the Company’s common stock in the form of a stock dividend. Each shareholder of record on June 18, 2021, received two additional shares of common stock for each share held as of this record date. The new shares were distributed after close of trading on June 28, 2021. All prior period share and per share amounts, common stock, other capital, and retained earnings presented herein have been retroactively adjusted to reflect the impact of the stock split. Proportional adjustments were also made to outstanding awards under the Company's stock-based compensation plans. Other Capital As a result of the stock split during second quarter 2021, CSX's common stock balance was increased and its other capital balance was reduced commensurately. Because this adjustment brought the other capital balance below zero, $1.0 billion was reclassified from retained earnings to other capital to bring the other capital balance to zero as of June 30, 2021. Prior period amounts have also been retroactively adjusted as needed to bring the other capital balance to zero. Fiscal Year The Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to “third quarter(s)” or “nine months” indicate CSX's fiscal periods ending September 30, 2021 and September 30, 2020, and references to "year-end" indicate the fiscal year ended December 31, 2020. New Accounting Pronouncements In March 2020, the FASB issued ASU Facilitation of the Effects of Reference Rate Reform on Financial Reporting. As the London Interbank Offered Rate ("LIBOR") will no longer be available beginning July 2023, this standard update provides practical expedients for contract modifications made as part of the transition from LIBOR to alternative reference rates. CSX's revolving line of credit currently uses LIBOR as a reference rate. This standard update can be adopted prospectively through December 31, 2022. The Company continues to evaluate the impact of this standard update, but does not anticipate that adoption will have a material impact on the Company's results of operations or financial position. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution. Third Quarters Nine Months 2021 2020 2021 2020 Numerator (Dollars in millions) : Net Earnings $ 968 $ 736 $ 2,847 $ 2,005 Denominator (Units in millions) : Average Common Shares Outstanding 2,237 2,295 2,263 2,302 Other Potentially Dilutive Common Shares 5 5 5 5 Average Common Shares Outstanding, Assuming Dilution 2,242 2,300 2,268 2,307 Net Earnings Per Share, Basic $ 0.43 $ 0.32 $ 1.26 $ 0.87 Net Earnings Per Share, Assuming Dilution $ 0.43 $ 0.32 $ 1.26 $ 0.87 Basic earnings per share is based on the weighted-average number of shares of common stock outstanding. Earnings per share, assuming dilution, is based on the weighted-average number of shares of common stock outstanding and common stock equivalents adjusted for the effects of common stock that may be issued as a result of potentially dilutive instruments. CSX's potentially dilutive instruments are made up of equity awards including performance units and employee stock options. When calculating diluted earnings per share, the potential shares that would be outstanding if all outstanding stock options were exercised are included. This number is different from outstanding stock options because it is offset by shares CSX could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent. The total average outstanding stock options that were excluded from the diluted earnings per share calculation because their effect was antidilutive is in the table below. Third Quarters Nine Months 2021 2020 2021 2020 Antidilutive Stock Options Excluded from Diluted EPS (Millions) 2 6 2 6 NOTE 2. Earnings Per Share, continued Share Repurchases In January 2019, the Company announced a $5 billion share repurchase program. During June 2021, this program was completed, and the Company began repurchasing shares under the $5 billion share repurchase program announced on October 21, 2020. Total repurchase authority remaining was $3.6 billion as of September 30, 2021. During third quarters and nine months ended 2021 and 2020, the Company engaged in the following repurchase activities: Third Quarters Nine Months 2021 2020 2021 2020 Shares Repurchased (Millions) 34 2 74 31 Cost of Shares (Dollars in millions) $ 1,064 $ 48 $ 2,316 $ 664 Share repurchases may be made through a variety of methods including, but not limited to, open market purchases, purchases pursuant to Rule 10b5-1 plans, accelerated share repurchases and negotiated block purchases. The timing of share repurchases depends upon management's assessment of marketplace conditions and other factors, and the program remains subject to the discretion of the Board of Directors. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances. Shares are retired immediately upon repurchase. In accordance with the Equity Topic in the Accounting Standards Codification ("ASC"), the excess of repurchase price over par value is recorded in retained earnings. Periodically, CSX enters into structured agreements for the repurchase of CSX shares. Upon execution of each agreement, the Company pays a fixed amount of cash in exchange for the right to receive either CSX stock or a predetermined amount of cash, including a premium. Shares acquired through these structured share repurchase agreements were recorded in common stock and retained earnings and are included in the share repurchases table above. Premiums received were not material. As a result of entering into and settling structured share repurchase agreements, the Company paid a net total of approximately $150 million and received approximately 5 million shares during the third quarter 2021 and paid a net total of approximately $378 million and received approximately 12 million shares during the nine months ended 2021. As of September 30, 2021, no such agreements were outstanding. Dividend Increase In February 2021, the Company's Board of Directors authorized an 8% increase in the quarterly cash dividend effective March 2021. The current split-adjusted quarterly dividend on the Company's common stock is $0.093 per common share. The dividend will be carried out to six decimal places to most closely approximate the $0.28 per share dividend amount prior to the three-for-one stock split that occurred on June 28, 2021. |
Stock Plans and Share-Based Com
Stock Plans and Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans and Share-Based Compensation | Stock Plans and Share-Based Compensation Under CSX's share-based compensation plans, awards consist of performance units, stock options, restricted stock units and restricted stock awards for management and stock grants for directors. Awards granted under the various programs are determined and approved by the Compensation and Talent Management Committee of the Board of Directors. Awards to the Chief Executive Officer are approved by the full Board and awards to senior executives are approved by the Compensation and Talent Management Committee. In certain circumstances, the Chief Executive Officer or delegate approves awards to management employees other than senior executives. The Board of Directors approves awards granted to CSX's non-management directors upon recommendation of the Governance and Sustainability Committee. Share-based compensation expense for awards under share-based compensation plans and purchases made as part of the employee stock purchase plan is measured using the fair value of the award on the grant date and is recognized on a straight-line basis over the service period of the respective award or upon grant date to certain retirement-eligible employees whose agreements allow for continued vesting upon retirement. Forfeitures are recognized as they occur. Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards. Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Share-Based Compensation Expense: Performance Units $ 6 $ 14 44 $ 6 Stock Options 3 3 13 16 Restricted Stock Units and Awards 3 2 10 5 Employee Stock Purchase Plan 1 1 3 3 Stock Awards for Directors — — 2 2 Total Share-Based Compensation Expense $ 13 $ 20 $ 72 $ 32 Income Tax Benefit $ 4 $ 6 $ 19 $ 17 NOTE 3. Stock Plans and Share-Based Compensation, continued Long-term Incentive Plan In February 2021, the Company granted 566 thousand (split-adjusted) performance units to certain employees under a new long-term incentive plan ("LTIP") for the years 2021 through 2023, which was adopted under the CSX 2019 Stock and Incentive Award Plan. Payouts of performance units for the cycle ending with fiscal year 2023 will be based on the achievement of goals related to both operating income and free cash flow, in each case excluding non-recurring items as disclosed in the Company's financial statements. The average annual operating income growth percentage and cumulative free cash flow measures over the plan period will each comprise 50% of the payout and will be measured independently of the other. Grants were made in performance units, with each unit representing the right to receive one share of CSX common stock, and payouts will be made in CSX common stock. The payout range for participants will be between 0% and 200% of the target awards depending on Company performance against predetermined goals. Payouts for certain executive officers are subject to formulaic upward or downward adjustment by up to 25%, capped at an overall payout of 250%, based upon the Company's total shareholder return relative to specified comparable groups over the performance period. Participants will receive stock dividend equivalents declared over the performance period based on the number of performance units paid upon vesting. Other immaterial grants of performance units were made during third quarter 2021. No grants were made during third quarter 2020. The fair values of the performance units awarded during the nine months ended 2021 and 2020 were primarily calculated using a Monte-Carlo simulation model with the following weighted-average assumptions: Nine Months 2021 2020 Weighted-Average Assumptions Used: Annual Dividend Yield N/A N/A Risk-free Interest Rate 0.2 % 1.4 % Annualized Volatility 33.6 % 24.5 % Expected Life (in years) 2.9 2.9 Stock Options In February 2021, the Company granted approximately 1,831 thousand (split-adjusted) stock options along with the corresponding LTIP. The fair value of stock options was calculated using the Black-Scholes valuation model. These stock options were granted with ten-year terms and vest over three years in equal installments each year on the anniversary of the grant date. The exercise price for stock options granted equals the closing market price of the underlying stock on the date of grant. These awards are time-based and are not based upon attainment of performance goals. During third quarter 2021, there were additional immaterial grants of stock options. No options were granted during third quarter 2020. NOTE 3. Stock Plans and Share-Based Compensation, continued The fair values of all stock option awards during the quarters and nine months ended September 30, 2021 and September 30, 2020 were estimated at the grant date with the following weighted average assumptions: Third Quarters Nine Months 2021 2020 2021 2020 Weighted-Average Grant Date Fair Value $ 8.86 N/A $ 7.94 $ 6.29 Weighted-Average Assumptions Used: Annual Dividend Yield 1.2 % N/A 1.2 % 1.2 % Risk-Free Interest Rate 1.0 % N/A 0.7 % 1.4 % Annualized Volatility 30.7 % N/A 31.2 % 26.0 % Expected Life (in years) 6.3 N/A 6.0 6.0 Other Pricing Model Inputs: Weighted-Average Grant Date Market Price of CSX Stock (strike price) $ 32.18 N/A $ 29.65 $ 26.49 Restricted Stock Units In February 2021, the Company granted 490 thousand (split-adjusted) restricted stock units along with the corresponding LTIP. The restricted stock units vest three years after the date of grant. Participants will receive stock dividend equivalents on the vested shares upon vesting. These awards are time-based and are not based upon CSX's attainment of operational targets. Restricted stock units are paid out in CSX common stock on a one-for-one basis. During third quarter 2021, there were additional immaterial grants of restricted stock units. For information related to the Company's other outstanding long-term incentive compensation, see CSX's most recent annual report on Form 10-K. Employee Stock Purchase Plan In May 2018, shareholders approved the 2018 CSX Employee Stock Purchase Plan (“ESPP”) for the benefit of Company employees. The Company registered 12 million (split-adjusted) shares of common stock that may be issued pursuant to this plan. Under the ESPP, employees may contribute between 1% and 10% of base compensation, after-tax, to purchase up to $25,000 of market value CSX common stock per year at 85% of the closing market price on either the grant date or the last day of the six-month offering period, whichever is lower. During the third quarter and nine months ended September 30, 2021 and September 30, 2020, the Company issued the following shares under this program: Third Quarters Nine Months 2021 2020 2021 2020 Shares issued (in thousands) 334 360 730 726 Weighted average purchase price per share $ 24.93 $ 19.76 $ 21.90 $ 20.13 |
Casualty, Environmental and Oth
Casualty, Environmental and Other Reserves | 9 Months Ended |
Sep. 30, 2021 | |
Casualty, Environmental and Other Reserves [Abstract] | |
Casualty, Environmental and Other Reserves | Casualty, Environmental and Other Reserves Personal injury and environmental reserves are considered critical accounting estimates due to the need for management judgment. Casualty, environmental and other reserves are provided for in the consolidated balance sheets as shown in the table below. September 30, 2021 December 31, 2020 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 44 $ 82 $ 126 $ 38 $ 93 $ 131 Occupational 7 57 64 11 54 65 Total Casualty 51 139 190 49 147 196 Environmental (a) 36 72 108 23 53 76 Other (a) 30 41 71 18 24 42 Total $ 117 $ 252 $ 369 $ 90 $ 224 $ 314 (a) The fair values of liabilities assumed as a result of the Company's acquisition of Quality Carriers on July 1, 2021, are included in environmental and other reserves as of September 30, 2021. See Note 12, Business Combinations. These liabilities are accrued when probable and reasonably estimable in accordance with the Contingencies Topic in the ASC. Actual settlements and claims received could differ, and final outcomes of these matters cannot be predicted with certainty. Considering the legal defenses currently available, the liabilities that have been recorded and other factors, it is the opinion of management that none of these items individually, when finally resolved, will have a material adverse effect on the Company's financial condition, results of operations or liquidity. Should a number of these items occur in the same period, however, their combined effect could be material in that particular period. Casualty Casualty reserves of $190 million and $196 million as of September 30, 2021 and December 31, 2020, respectively, represent accruals for personal injury, occupational disease and occupational injury claims. Beginning June 1, 2021, the Company's self-insured retention amount for these claims increased to $100 million per occurrence. Currently, no individual claim is expected to exceed the self-insured retention amount. In accordance with the Contingencies Topic in the ASC, to the extent the value of an individual claim exceeds the self-insured retention amount, the Company would present the liability on a gross basis with a corresponding receivable for insurance recoveries. These reserves fluctuate based upon the timing of payments as well as changes in estimate. Actual results may vary from estimates due to the number, type and severity of the injury, costs of medical treatments and uncertainties in litigation. Most of the Company's casualty claims relate to CSXT. Defense and processing costs, which historically have been insignificant and are anticipated to be insignificant in the future, are not included in the recorded liabilities. Personal Injury Personal injury reserves represent liabilities for employee work-related and third-party injuries. Work-related injuries for CSXT employees are primarily subject to the Federal Employers’ Liability Act (“FELA”). CSXT retains an independent actuary to assist management in assessing the value of personal injury claims. An analysis is performed by the actuary quarterly and is reviewed by management. This analysis did not result in a material adjustment to the personal injury reserve in the quarter ended September 30, 2021 or September 30, 2020. The methodology used by the actuary includes a development factor to reflect growth or reduction in the value of these personal injury claims based largely on CSXT's historical claims and settlement experience. NOTE 4. Casualty, Environmental and Other Reserves, continued Occupational Occupational reserves represent liabilities arising from allegations of exposure to certain materials in the workplace (such as solvents, soaps, chemicals and diesel fumes), past exposure to asbestos or allegations of chronic physical injuries resulting from work conditions (such as repetitive stress injuries). Beginning in second quarter 2020, the Company retains an independent actuary to analyze the Company’s historical claim filings, settlement amounts, and dismissal rates to assist in determining future anticipated claim filing rates and average settlement values. This analysis is performed by the actuary and reviewed by management quarterly. Previously, the quarterly analysis was performed by management. There were no material adjustments to the occupational reserve in the quarter ended September 30, 2021 or September 30, 2020. Environmental Environmental reserves were $108 million and $76 million as of September 30, 2021 and December 31, 2020, respectively. The Company is a party to various proceedings related to environmental issues, including administrative and judicial proceedings involving private parties and regulatory agencies. The Company has been identified as a potentially responsible party at approximately 240 environmentally impaired sites. Many of these are, or may be, subject to remedial action under the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), also known as the Superfund Law, or similar state statutes. Most of these proceedings arose from environmental conditions on properties used for ongoing or discontinued railroad operations. A number of these proceedings, however, are based on allegations that the Company, or its predecessors, sent hazardous substances to facilities owned or operated by others for treatment, recycling or disposal. In addition, some of the Company's land holdings were leased to others for commercial or industrial uses that may have resulted in releases of hazardous substances or other regulated materials onto the property and could give rise to proceedings against the Company. In any such proceedings, the Company is subject to environmental clean-up and enforcement actions under the Superfund Law, as well as similar state laws that may impose joint and several liability for clean-up and enforcement costs on current and former owners and operators of a site without regard to fault or the legality of the original conduct. These costs could be substantial. In accordance with the Asset Retirement and Environmental Obligations Topic in the ASC, the Company reviews its role with respect to each site identified at least quarterly, giving consideration to a number of factors such as: • 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. NOTE 4. Casualty, Environmental and Other Reserves, continued Based on management's review process, amounts have been recorded to cover contingent anticipated future environmental remediation costs with respect to each site to the extent such costs are reasonably estimable and probable. The recorded liabilities for estimated future environmental costs are undiscounted. The liability includes future costs for remediation and restoration of sites as well as any significant ongoing monitoring costs, but excludes any anticipated insurance recoveries. Payments related to these liabilities are expected to be made over the next several years. Environmental remediation costs are included in purchased services and other on the consolidated income statements. Currently, the Company does not possess sufficient information to reasonably estimate the amounts of additional liabilities, if any, on some sites until completion of future environmental studies. In addition, conditions that are currently unknown could, at any given location, result in additional exposure, the amount and materiality of which cannot presently be reasonably estimated. Based upon information currently available, however, the Company believes its environmental reserves accurately reflect the estimated cost of remedial actions currently required. Other |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance The Company maintains insurance programs with substantial limits for property damage, including resulting business interruption, and third-party liability. A certain amount of risk is retained by the Company on each insurance program. Under its property insurance program, the Company retains all risk up to $100 million per occurrence for losses from floods and named windstorms and $75 million per occurrence for other property losses. For third-party liability claims, the Company retains all risk up to $100 million per occurrence. As CSX negotiates insurance coverage above its full self-retention amounts, it retains a percentage of risk at various layers of coverage. While the Company believes its insurance coverage is adequate, future claims could exceed existing insurance coverage or insurance may not continue to be available at commercially reasonable rates. NOTE 5. Commitments and Contingencies, continued Legal The Company is involved in litigation incidental to its business and is a party to a number of legal actions and claims, various governmental proceedings and private civil lawsuits, including, but not limited to, those related to fuel surcharge practices, tax matters, environmental and hazardous material exposure matters, FELA and labor claims by current or former employees, other personal injury or property claims and disputes and complaints involving certain transportation rates and charges. Some of the legal proceedings include claims for compensatory as well as punitive damages and others are, or are purported to be, class actions. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the legal defenses available and liabilities that have been recorded along with applicable insurance, it is currently the opinion of management that none of these pending items is likely to have a material adverse effect on the Company's financial condition, results of operations or liquidity. An unexpected adverse resolution of one or more of these items, however, could have a material adverse effect on the Company's financial condition, results of operations or liquidity in that particular period. The Company is able to estimate a range of possible loss for certain legal proceedings for which a loss is reasonably possible in excess of reserves established. The Company has estimated this range to be $3 million to $27 million in aggregate at September 30, 2021. This estimated aggregate range is based upon currently available information and is subject to significant judgment and a variety of assumptions. Accordingly, the Company's estimate will change from time to time, and actual losses may vary significantly from the current estimate. Fuel Surcharge Antitrust Litigation In May 2007, class action lawsuits were filed against CSXT and three other U.S.-based Class I railroads alleging that the defendants' fuel surcharge practices relating to contract and unregulated traffic resulted from an illegal conspiracy in violation of antitrust laws. The class action lawsuits were consolidated into one case in federal court in the District of Columbia. In 2017, the District Court issued its decision denying class certification. On August 16, 2019, the U.S. Court of Appeals for the D.C. Circuit affirmed the District Court’s ruling. The consolidated case is now moving forward without class certification. Although a class was not certified, shippers other than those who brought the original lawsuit in 2007 must decide whether to bring their own individual claim against one or more railroads. Individual shipper claims filed to date have been consolidated into a separate case. CSXT believes that its fuel surcharge practices were arrived at and applied lawfully and that the case is without merit. Accordingly, the Company intends to defend itself vigorously. However, penalties for violating antitrust laws can be severe, and resolution of these matters individually or when aggregated could have a material adverse effect on the Company's financial condition, results of operations or liquidity in that particular period. NOTE 5. Commitments and Contingencies, continued Environmental CSXT is indemnifying Pharmacia LLC, formerly known as Monsanto Company, ("Pharmacia") for certain liabilities associated with real estate located in Kearny, New Jersey along the Lower Passaic River (the “Property”). The Property, which was formerly owned by Pharmacia, is now owned by CSXT. CSXT's indemnification and defense duties arise with respect to several matters. The U.S. Environmental Protection Agency ("EPA"), using its CERCLA authority, seeks the investigation and cleanup of hazardous substances in the 17-mile Lower Passaic River Study Area (the "Study Area”). CSXT, on behalf of Pharmacia, and a significant number of other potentially responsible parties are together conducting a Remedial Investigation and Feasibility Study of the Study Area pursuant to an Administrative Settlement Agreement and Order on Consent with the EPA. Pharmacia’s share of responsibility, indemnified by CSXT, for the investigation and cleanup costs of the Study Area may be determined through various mechanisms including (a) an allocation and settlement with EPA; (b) litigation brought by EPA against non-settling parties; or (c) litigation among the responsible parties. In March 2016, EPA issued its Record of Decision detailing the agency’s mandated remedial process for the lower 8 miles of the Study Area. Approximately 80 parties, including Pharmacia, are participating in an EPA-directed allocation and settlement process to assign responsibility for the remedy selected for the lower 8 miles of the Study Area. CSXT is participating in the EPA-directed allocation and settlement process on behalf of Pharmacia. At a later date, EPA will select a remedy for the remainder of the Study Area and is expected to again seek the participation of private parties to implement the selected remedy using EPA’s CERCLA authority to compel such participation, if necessary. CSXT is also defending and indemnifying Pharmacia with regard to the Property in litigation filed by Occidental Chemical Corporation ("Occidental"), which is seeking to recover various costs. These costs include costs for the remedial design of the lower 8 miles of the Study Area, as well as anticipated costs associated with the future remediation of the lower 8 miles of the Study Area and potentially the entire Study Area. Alternatively, Occidental seeks to compel some, or all of the defendants to participate in the remediation of the Study Area. Pharmacia is one of approximately 110 defendants in this federal lawsuit filed by Occidental on June 30, 2018. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel. Beginning in 2020, the CSX Pension Plan was closed to new participants. 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. Beginning in 2019, both the life insurance benefit and health savings account contributions made by the Company to eligible retirees younger than 65 were eliminated for those retiring on or after January 1, 2019. Beginning in 2020, the employer-funded health reimbursement arrangements and life insurance benefit for eligible retirees 65 years or older were eliminated. 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. Pension Benefits Cost Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Service Cost Included in Labor and Fringe $ 10 $ 10 $ 28 $ 30 Interest Cost 13 20 40 61 Expected Return on Plan Assets (46) (43) (139) (130) Amortization of Net Loss 18 15 55 43 Total Included in Other Income - Net (15) (8) (44) (26) Net Periodic Benefit (Credit)/Cost $ (5) $ 2 $ (16) $ 4 Other Post-retirement Benefits Cost Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Service Cost Included in Labor and Fringe $ 1 $ — $ 1 $ 1 Interest Cost — 1 1 2 Amortization of Prior Service Credits (2) (2) (6) (5) Total Included in Other Income - Net (2) (1) (5) (3) Net Periodic Benefit Credit $ (1) $ (1) $ (4) $ (2) |
Debt and Credit Agreements
Debt and Credit Agreements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Total activity related to long-term debt as of the end of third quarter 2021 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 10, Fair Value Measurements. (Dollars in millions) Current Portion Long-term Portion Total Long-term Debt as of December 31, 2020 $ 401 $ 16,304 $ 16,705 2021 Activity: Long-term Debt Repaid (390) — (390) Reclassifications 175 (175) — Finance Lease Obligations and Debt Assumed (a) 25 43 68 Discount, Premium and Other Activity — 10 10 Long-term Debt as of September 30, 2021 $ 211 $ 16,182 $ 16,393 (a) In third quarter 2021, finance lease obligations and debt were assumed related to the Company's acquisition of Quality Carriers on July 1, 2021. See Note 12, Business Combinations. Interest Rate Derivatives On both April 29, 2020, and July 9, 2020, the Company executed a forward starting interest rate swap with a notional value of $250 million for an aggregate notional value of $500 million. These swaps were effected to hedge the benchmark interest rate associated with future interest payments related to the anticipated refinancing of $850 million of 3.25% notes due in 2027. In accordance with the Derivatives and Hedging Topic in the ASC, the Company has designated these swaps as cash flow hedges. As of September 30, 2021 and December 31, 2020, the asset value of the forward starting interest rate swaps was $116 million and $80 million, respectively, and was recorded in other long-term assets on the consolidated balance sheet. Unrealized gains or losses associated with changes in the fair value of the hedge are recorded net of tax in accumulated other comprehensive income (“AOCI”) on the consolidated balance sheet. Unless settled early, the swaps will expire in 2027 and the unrealized gain or loss in AOCI will be recognized in earnings as an adjustment to interest expense over the same period during which the hedged transaction affects earnings. Unrealized amounts, recorded net of tax in other comprehensive income, related to the hedge were gains of $7 million and $25 million for third quarters ended 2021 and 2020 and gains of $28 million and $34 million for the nine months 2021 and 2020, respectively. Credit Facility CSX has a $1.2 billion unsecured, revolving credit facility backed by a diverse syndicate of banks. This facility allows same-day borrowings at floating interest rates, based on LIBOR or an agreed-upon replacement reference rate, plus a spread that depends upon CSX's senior unsecured debt ratings. This facility expires in March 2024, and at September 30, 2021, the Company had no outstanding balances under this facility. Commitment fees and interest rates payable under the facility were similar to fees and rates available to comparably rated investment-grade borrowers. As of third quarter 2021, CSX was in compliance with all covenant requirements under this facility. NOTE 7. Debt and Credit Agreements , continued Commercial Paper Under its commercial paper program, which is backed by the revolving credit facility, the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1.0 billion outstanding at any one time. Proceeds from issuances of the notes are expected to be used for general corporate purposes. At September 30, 2021, the Company had no outstanding debt under the commercial paper program. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company’s revenues are primarily derived from the transportation of freight as performance obligations that arise from its contracts with customers are satisfied. The following table presents the Company’s revenues disaggregated by market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors: Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Chemicals $ 624 $ 566 $ 1,810 $ 1,723 Agricultural and Food Products 343 335 1,062 1,011 Forest Products (a) 231 209 684 625 Automotive 209 271 661 645 Metals and Equipment 206 159 596 500 Minerals 162 144 439 405 Fertilizers (a) 106 93 350 303 Total Merchandise 1,881 1,777 5,602 5,212 Intermodal 509 445 1,488 1,226 Coal 460 330 1,267 1,022 Trucking (b) 200 — 200 — Other 242 96 538 298 Total $ 3,292 $ 2,648 $ 9,095 $ 7,758 (a) Effective first quarter 2021, changes were made in the categorization of certain lines of business, impacting Forest Products and Fertilizers. The impacts were not material and prior periods have been reclassified to conform to the current presentation. (b) Effective third quarter 2021, Trucking revenue is comprised of revenue from the operations of Quality Carriers, which was acquired by CSX effective July 1, 2021. Revenue Recognition The Company generates revenue from freight billings under contracts with customers generally on a rate per carload, container or ton-basis based on length of haul and commodities carried. The Company’s performance obligation arises when it receives a bill of lading (“BOL”) to transport a customer's commodities at a negotiated price contained in a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received, a contract is formed whereby the parties are committed to perform, collectability of consideration is probable and the rights of the parties, shipping terms and conditions, and payment terms are identified. A customer may submit several BOLs for transportation services at various times throughout a service agreement term but each shipment represents a distinct service that is a separately identified performance obligation. NOTE 8. Revenues, continued The average transit time to complete a rail shipment is between 2 to 8 days depending on market. Payments for transportation services are normally billed once a BOL is received and are generally due within 15 days after the invoice date. The Company recognizes revenue over transit time of freight as it moves from origin to destination. Revenue for services started but not completed at the reporting date is allocated based on the relative transit time in each reporting period, with the portion allocated for services subsequent to the reporting date considered remaining performance obligations. The certain key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows: • Revenue associated with shipments in transit is recognized ratably over transit time and is based on average cycle times to move commodities and products from their origin to their final destination or interchange; • Adjustments to revenue for billing corrections and billing discounts; • Adjustments to revenue for overcharge claims filed by customers, which are based on historical payments to customers for rate overcharges as a percentage of total billing; and • Incentive-based refunds to customers, which are primarily volume-related, are recorded as a reduction to revenue on the basis of the projected liability (this estimate is based on historical activity, current volume levels and forecasted future volume). Revenue related to interline transportation services that involve the services of another party, such as another railroad, is reported on a net basis. The portion of the gross amount billed to customers that is remitted by the Company to another party is not reflected as revenue. Effective third quarter 2021, trucking revenue includes revenue from the operations of Quality Carriers. This revenue is mostly comprised of truck shipments of chemicals and is recorded ratably over transit time. Other revenue is recorded upon completion of the service and is comprised of revenue from regional subsidiary railroads and incidental charges, including demurrage, switching, and intermodal storage and equipment usage. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate. Demurrage represents charges assessed when freight cars are held by a customer beyond a specified period of time. Switching represents charges assessed when a railroad switches cars for a customer or another railroad. Intermodal storage represents charges for customer storage of containers at an intermodal terminal or ramp facility beyond a specified period of time. During the third quarters and nine months ended 2021 and 2020, revenue recognized from performance obligations related to prior periods (for example, due to changes in transaction price) was not material. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to future reporting periods for freight services started but not completed at the reporting date . This includes the unearned portion of billed and unbilled amounts for cancellable freight shipments in transit. The Company expects to recognize the unearned portion of revenue for freight services in transit within one week of the reporting date. As of September 30, 2021, remaining performance obligations were not material. NOTE 8. Revenues, continued Contract Balances and Accounts Receivable The timing of revenue recognition, billings and cash collections results in accounts receivable and customer advances and deposits (contract liabilities) on the consolidated balance sheets. Contract assets, contract liabilities and deferred contract costs recorded on the consolidated balance sheet as of September 30, 2021, were not material. The Company’s accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for credit losses. (Dollars in millions) September 30, December 31, Freight Receivables $ 950 $ 716 Freight Allowance for Credit Losses (14) (16) Freight Receivables, net 936 700 Non-Freight Receivables 402 224 Non-Freight Allowance for Credit Losses (12) (12) Non-Freight Receivables, net 390 212 Total Accounts Receivable, net $ 1,326 $ 912 Freight receivables include amounts earned, billed and unbilled , and currently due from customers for transportation-related services. Non-freight receivables include amounts billed and unbilled and currently due related to government reimbursement receivables and other non-revenue receivables. At September 30, 2021, non-freight receivables include a $168 million receivable related to the conveyance of an easement to the Commonwealth of Virginia. See Note 1, Nature of Operations and Significant Accounting Policies, for more details about this transaction. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of risk characteristics, historical payment experience, and the age of outstanding receivables adjusted for forward-looking economic conditions as necessary. Credit losses recognized on the Company’s accounts receivable were not material in the third quarters or nine months ended 2021 and 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThere have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Financial Instruments Topic in the ASC requires disclosures about fair value of financial instruments in annual reports as well as in quarterly reports. For CSX, this statement applies to certain investments, long-term debt and interest rate derivatives. Disclosure of the fair value of pension plan assets is only required annually. Also, this rule clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the value of the Company's investments, pension plan assets, long-term debt and interest rate derivatives. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. These inputs are summarized in the three broad levels listed below. • 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.); and • Level 3 - significant unobservable inputs (including the Company's own assumptions about the assumptions market participants would use in determining the fair value of investments). The valuation methods described below may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Investments The Company's investment assets, valued with assistance from a third-party trustee, consist of corporate bonds and government securities and are carried at fair value on the consolidated balance sheet per the Fair Value Measurements and Disclosures Topic in the ASC. These assets are valued using broker quotes that utilize observable market inputs. All of the inputs used to determine the fair value of the Company's investments are Level 2 inputs. The Company's investment assets are summarized in the following table. (Dollars in Millions) September 30, December 31, Corporate Bonds $ 65 $ 68 Government Securities 28 33 Total investments at fair value $ 93 $ 101 Total investments at amortized cost $ 84 $ 89 NOTE 10. Fair Value Measurements, continued These investments have the following maturities: (Dollars in millions) September 30, December 31, Less than 1 year $ 3 $ 2 1 - 5 years 28 22 5 - 10 years 14 23 Greater than 10 years 48 54 Total investments at fair value $ 93 $ 101 Long-term Debt Long-term debt is reported at carrying amount on the consolidated balance sheets and is the Company's only financial instrument with fair values significantly different from their carrying amounts. The majority of the Company's long-term debt is valued with assistance from a third party that utilizes closing transactions, market quotes or market values of comparable debt. For those instruments not valued by the third party, the fair value has been estimated by applying market rates of similar instruments to the scheduled contractual debt payments and maturities. These market rates are provided by the same third party. All of the inputs used to determine the fair value of the Company's long-term debt are Level 2 inputs. The fair value of outstanding debt fluctuates with changes in a number of factors. Such factors include, but are not limited to, interest rates, market conditions, credit ratings, values of similar financial instruments, size of the transaction, cash flow projections and comparable trades. Fair value will exceed carrying value when the current market interest rate is lower than the interest rate at which the debt was originally issued. The fair value of a company's debt is a measure of its current value under present market conditions. It does not impact the financial statements under current accounting rules. The fair value and carrying value of the Company's long-term debt is as follows: (Dollars in millions) September 30, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 19,654 $ 21,076 Carrying Value 16,393 16,705 Interest Rate Derivatives The Company’s forward starting interest rate swaps are carried at fair value and valued with assistance from a third party based upon pricing models using inputs observed from actively quoted markets. All of the inputs used to determine the fair value of the swaps are Level 2 inputs. The fair value of the Company’s forward starting interest rate swap asset was $116 million and $80 million as of September 30, 2021 and December 31, 2020, respectively. See Note 7, Debt and Credit Agreements, for further information. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) CSX reports comprehensive earnings or loss in accordance with the Comprehensive Income Topic in the ASC in the Consolidated Comprehensive Income Statement. Total comprehensive earnings are defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders (e.g. issuance of equity securities and dividends). Generally, for CSX, total comprehensive earnings equal net earnings plus or minus adjustments for pension and other post-retirement liabilities as well as other adjustments. Total comprehensive earnings represent the activity for a period net of tax and were $985 million and $770 million for third quarters 2021 and 2020 and $2.9 billion and $2.1 billion for the nine months 2021 and 2020, respectively. While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. For CSX, AOCI is primarily the cumulative balance related to pension and other post-retirement benefit adjustments, interest rate derivatives and CSX's share of AOCI of equity method investees. Changes in the AOCI balance by component are shown in the following table. Amounts reclassified in pension and other post-employment benefits to net earnings relate to the amortization of actuarial losses and are included in other income - net on the consolidated income statements. See Note 6, Employee Benefit Plans, for further information. Interest rate derivatives consist of forward starting interest rate swaps classified as cash flow hedges. See Note 7, Debt and Credit Agreements, for further information. Other primarily represents CSX's share of AOCI of equity method investees. Amounts reclassified in other to net earnings are included in purchased services and other or equipment and other rents on the consolidated income statements. Pension and Other Post-Employment Benefits Interest Rate Derivatives Other Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Balance December 31, 2020, Net of Tax $ (598) $ 62 $ (62) $ (598) Other Comprehensive Income (Loss) Income Before Reclassifications — 36 — 36 Amounts Reclassified to Net Earnings 50 — (2) 48 Tax Expense (12) (8) — (20) Total Other Comprehensive Income 38 28 (2) 64 Balance September 30, 2021, Net of Tax $ (560) $ 90 $ (64) $ (534) |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Acquisition of Quality Carriers, Inc. On July 1, 2021, the Company completed its acquisition of Quality Carriers, the largest provider of bulk liquid chemicals truck transportation in North America, for $546 million in cash, subject to certain customary purchase price adjustments. Through a network of over 100 company-owned and affiliate terminals and facilities in key locations throughout the United States, Canada and Mexico, Quality Carriers provides transportation services to many of the leading chemical producers and shippers in North America. The results of Quality Carriers' operations and its cash flows were consolidated prospectively. The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805, Business Combinations. The allocation of the purchase price to assets acquired and liabilities assumed is based upon preliminary information and is subject to change as additional information becomes available and as certain tax returns are filed. Any adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. The preliminary allocation of total consideration to the fair values of the acquired assets and liabilities of Quality Carriers is summarized in the table below. (Dollars in millions) July 1, 2021 Assets Acquired: Cash and Cash Equivalents $ 3 Accounts Receivable, net 113 Properties and Equipment, net 225 Goodwill 200 Intangible Assets 190 Other Assets 11 Total Assets Acquired $ 742 Liabilities Assumed: Accounts Payable and Accrued Liabilities 48 Finance Lease Obligations and Notes Payable 68 Casualty, Environmental and Other Reserves 60 Other Long-term Liabilities 20 Total Liabilities Assumed 196 Fair Value of Assets Acquired, Net of Liabilities Assumed: $ 546 The goodwill of $200 million was calculated as the excess of the consideration paid over the fair value of net assets assumed as of July 1, 2021 and relates primarily to the ability of CSX to extend the reach of its network and gain access to new products, markets, and regions through a unique and competitive multimodal solution that leverages the reach of truck transportation with the cost advantage of rail-based services. Goodwill recognized in the acquisition is deductible for tax purposes. NOTE 12. Business Combinations, continued Cash paid to acquire the business, net of acquired cash and cash equivalents of $3 million, is included in investing activities on the Company's consolidated statement of cash flows. Properties of $225 million include tractors and trailers, equipment, land, buildings and other assets. Intangible assets of $190 million consist of $160 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. The Company incurred costs related to this acquisition of approximately $16 million, $12 million of which was incurred during the three months ended September 30, 2021. All acquisition-related costs were expensed as incurred and have been recorded in purchased services and other in the accompanying consolidated income statements. This acquisition is not material with respect to the Company’s financial statements when reviewed under the quantitative and qualitative considerations of Regulation S-X Article 11 and ASC Topic 805. As the acquisition is not material, CSX has not provided pro forma information relating to the pre-acquisition period. Proposed Acquisition of Pan Am Systems, Inc. On November 30, 2020, CSX signed a definitive agreement to acquire Pan Am Systems, Inc. (“Pan Am”) which is the parent company of Pan Am Railways, Inc. who jointly owns Pan Am Southern, LLC with a subsidiary of Norfolk Southern Corporation. Pan Am owns and operates a highly integrated, nearly 1,200-mile rail network and has a joint interest in the more than 600-mile Pan Am Southern system. This acquisition, if approved, will expand CSX’s reach in the Northeastern United States. Assets and facilities to be acquired as part of the proposed transaction include road and track assets, work equipment, land, buildings and other assets. On February 25, 2021, the Company began the process of seeking approval from the Surface Transportation Board ("STB"), with a decision expected by April 1, 2022. This proposed acquisition is not expected to be material with respect to the Company's financial statements when reviewed under the quantitative and qualitative considerations of Regulation S-X Article 11 and ASC Topic 805. |
Nature of Operations and Sign_2
Nature of Operations and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | In the opinion of management, the accompanying consolidated financial statements contain all normal, recurring adjustments necessary to fairly present the consolidated financial statements and accompanying notes. Where applicable, prior year information has been reclassified to conform to the current presentation. Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been omitted from these interim financial statements. CSX suggests that these financial statements be read in conjunction with the audited financial statements and the notes included in CSX's most recent annual report on Form 10-K and any subsequently filed current reports on Form 8-K. |
Fiscal Year | The Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to “third quarter(s)” or “nine months” indicate CSX's fiscal periods ending September 30, 2021 and September 30, 2020, and references to "year-end" indicate the fiscal year ended December 31, 2020. |
New Accounting Pronouncements | In March 2020, the FASB issued ASU Facilitation of the Effects of Reference Rate Reform on Financial Reporting. As the London Interbank Offered Rate ("LIBOR") will no longer be available beginning July 2023, this standard update provides practical expedients for contract modifications made as part of the transition from LIBOR to alternative reference rates. CSX's revolving line of credit currently uses LIBOR as a reference rate. This standard update can be adopted prospectively through December 31, 2022. The Company continues to evaluate the impact of this standard update, but does not anticipate that adoption will have a material impact on the Company's results of operations or financial position. |
Revenue Recognition | The Company generates revenue from freight billings under contracts with customers generally on a rate per carload, container or ton-basis based on length of haul and commodities carried. The Company’s performance obligation arises when it receives a bill of lading (“BOL”) to transport a customer's commodities at a negotiated price contained in a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received, a contract is formed whereby the parties are committed to perform, collectability of consideration is probable and the rights of the parties, shipping terms and conditions, and payment terms are identified. A customer may submit several BOLs for transportation services at various times throughout a service agreement term but each shipment represents a distinct service that is a separately identified performance obligation. The average transit time to complete a rail shipment is between 2 to 8 days depending on market. Payments for transportation services are normally billed once a BOL is received and are generally due within 15 days after the invoice date. The Company recognizes revenue over transit time of freight as it moves from origin to destination. Revenue for services started but not completed at the reporting date is allocated based on the relative transit time in each reporting period, with the portion allocated for services subsequent to the reporting date considered remaining performance obligations. The certain key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows: • Revenue associated with shipments in transit is recognized ratably over transit time and is based on average cycle times to move commodities and products from their origin to their final destination or interchange; • Adjustments to revenue for billing corrections and billing discounts; • Adjustments to revenue for overcharge claims filed by customers, which are based on historical payments to customers for rate overcharges as a percentage of total billing; and • Incentive-based refunds to customers, which are primarily volume-related, are recorded as a reduction to revenue on the basis of the projected liability (this estimate is based on historical activity, current volume levels and forecasted future volume). Revenue related to interline transportation services that involve the services of another party, such as another railroad, is reported on a net basis. The portion of the gross amount billed to customers that is remitted by the Company to another party is not reflected as revenue. Effective third quarter 2021, trucking revenue includes revenue from the operations of Quality Carriers. This revenue is mostly comprised of truck shipments of chemicals and is recorded ratably over transit time. Other revenue is recorded upon completion of the service and is comprised of revenue from regional subsidiary railroads and incidental charges, including demurrage, switching, and intermodal storage and equipment usage. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate. Demurrage represents charges assessed when freight cars are held by a customer beyond a specified period of time. Switching represents charges assessed when a railroad switches cars for a customer or another railroad. Intermodal storage represents charges for customer storage of containers at an intermodal terminal or ramp facility beyond a specified period of time. Remaining performance obligations represent the transaction price allocated to future reporting periods for freight services started but not completed at the reporting date . Freight receivables include amounts earned, billed and unbilled , and currently due from customers for transportation-related services. Non-freight receivables include amounts billed and unbilled and currently due related to government reimbursement receivables and other non-revenue receivables. At September 30, 2021, non-freight receivables include a $168 million receivable related to the conveyance of an easement to the Commonwealth of Virginia. See Note 1, Nature of Operations and Significant Accounting Policies, for more details about this transaction. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of risk characteristics, historical payment experience, and the age of outstanding receivables adjusted for forward-looking economic conditions as necessary. |
Fair Value Measurements | The Financial Instruments Topic in the ASC requires disclosures about fair value of financial instruments in annual reports as well as in quarterly reports. For CSX, this statement applies to certain investments, long-term debt and interest rate derivatives. Disclosure of the fair value of pension plan assets is only required annually. Also, this rule clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the value of the Company's investments, pension plan assets, long-term debt and interest rate derivatives. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. These inputs are summarized in the three broad levels listed below. • 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.); and • Level 3 - significant unobservable inputs (including the Company's own assumptions about the assumptions market participants would use in determining the fair value of investments). The valuation methods described below may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Investments The Company's investment assets, valued with assistance from a third-party trustee, consist of corporate bonds and government securities and are carried at fair value on the consolidated balance sheet per the Fair Value Measurements and Disclosures Topic in the ASC. These assets are valued using broker quotes that utilize observable market inputs. All of the inputs used to determine the fair value of the Company's investments are Level 2 inputs. Long-term Debt Long-term debt is reported at carrying amount on the consolidated balance sheets and is the Company's only financial instrument with fair values significantly different from their carrying amounts. The majority of the Company's long-term debt is valued with assistance from a third party that utilizes closing transactions, market quotes or market values of comparable debt. For those instruments not valued by the third party, the fair value has been estimated by applying market rates of similar instruments to the scheduled contractual debt payments and maturities. These market rates are provided by the same third party. All of the inputs used to determine the fair value of the Company's long-term debt are Level 2 inputs. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic Earnings Per Share, Assuming Dilution | The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution. Third Quarters Nine Months 2021 2020 2021 2020 Numerator (Dollars in millions) : Net Earnings $ 968 $ 736 $ 2,847 $ 2,005 Denominator (Units in millions) : Average Common Shares Outstanding 2,237 2,295 2,263 2,302 Other Potentially Dilutive Common Shares 5 5 5 5 Average Common Shares Outstanding, Assuming Dilution 2,242 2,300 2,268 2,307 Net Earnings Per Share, Basic $ 0.43 $ 0.32 $ 1.26 $ 0.87 Net Earnings Per Share, Assuming Dilution $ 0.43 $ 0.32 $ 1.26 $ 0.87 |
Schedule of Total Average Outstanding Stock Options Excluded from Diluted Earnings Per Share Calculation | The total average outstanding stock options that were excluded from the diluted earnings per share calculation because their effect was antidilutive is in the table below. Third Quarters Nine Months 2021 2020 2021 2020 Antidilutive Stock Options Excluded from Diluted EPS (Millions) 2 6 2 6 |
Schedule of Share Repurchased by the Company | During third quarters and nine months ended 2021 and 2020, the Company engaged in the following repurchase activities: Third Quarters Nine Months 2021 2020 2021 2020 Shares Repurchased (Millions) 34 2 74 31 Cost of Shares (Dollars in millions) $ 1,064 $ 48 $ 2,316 $ 664 |
Stock Plans and Share-Based C_2
Stock Plans and Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Pre-tax Expense and Income Tax Benefits Associated with Share-Based Compensation | Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards. Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Share-Based Compensation Expense: Performance Units $ 6 $ 14 44 $ 6 Stock Options 3 3 13 16 Restricted Stock Units and Awards 3 2 10 5 Employee Stock Purchase Plan 1 1 3 3 Stock Awards for Directors — — 2 2 Total Share-Based Compensation Expense $ 13 $ 20 $ 72 $ 32 Income Tax Benefit $ 4 $ 6 $ 19 $ 17 |
Schedule of Weighted Average Assumptions Used for Performance Units | The fair values of the performance units awarded during the nine months ended 2021 and 2020 were primarily calculated using a Monte-Carlo simulation model with the following weighted-average assumptions: Nine Months 2021 2020 Weighted-Average Assumptions Used: Annual Dividend Yield N/A N/A Risk-free Interest Rate 0.2 % 1.4 % Annualized Volatility 33.6 % 24.5 % Expected Life (in years) 2.9 2.9 |
Schedule of Fair Value Assumptions Used for Stock Options | The fair values of all stock option awards during the quarters and nine months ended September 30, 2021 and September 30, 2020 were estimated at the grant date with the following weighted average assumptions: Third Quarters Nine Months 2021 2020 2021 2020 Weighted-Average Grant Date Fair Value $ 8.86 N/A $ 7.94 $ 6.29 Weighted-Average Assumptions Used: Annual Dividend Yield 1.2 % N/A 1.2 % 1.2 % Risk-Free Interest Rate 1.0 % N/A 0.7 % 1.4 % Annualized Volatility 30.7 % N/A 31.2 % 26.0 % Expected Life (in years) 6.3 N/A 6.0 6.0 Other Pricing Model Inputs: Weighted-Average Grant Date Market Price of CSX Stock (strike price) $ 32.18 N/A $ 29.65 $ 26.49 |
Schedule of Shares Issued Under Employee Stock Purchase Plan | During the third quarter and nine months ended September 30, 2021 and September 30, 2020, the Company issued the following shares under this program: Third Quarters Nine Months 2021 2020 2021 2020 Shares issued (in thousands) 334 360 730 726 Weighted average purchase price per share $ 24.93 $ 19.76 $ 21.90 $ 20.13 |
Casualty, Environmental and O_2
Casualty, Environmental and Other Reserves (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Casualty, Environmental and Other Reserves [Abstract] | |
Schedule of Casualty, Environmental and Other Reserves | Casualty, environmental and other reserves are provided for in the consolidated balance sheets as shown in the table below. September 30, 2021 December 31, 2020 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 44 $ 82 $ 126 $ 38 $ 93 $ 131 Occupational 7 57 64 11 54 65 Total Casualty 51 139 190 49 147 196 Environmental (a) 36 72 108 23 53 76 Other (a) 30 41 71 18 24 42 Total $ 117 $ 252 $ 369 $ 90 $ 224 $ 314 (a) The fair values of liabilities assumed as a result of the Company's acquisition of Quality Carriers on July 1, 2021, are included in environmental and other reserves as of September 30, 2021. See Note 12, Business Combinations. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Expense/(Income) Related to Net Benefit Expense | Pension Benefits Cost Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Service Cost Included in Labor and Fringe $ 10 $ 10 $ 28 $ 30 Interest Cost 13 20 40 61 Expected Return on Plan Assets (46) (43) (139) (130) Amortization of Net Loss 18 15 55 43 Total Included in Other Income - Net (15) (8) (44) (26) Net Periodic Benefit (Credit)/Cost $ (5) $ 2 $ (16) $ 4 Other Post-retirement Benefits Cost Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Service Cost Included in Labor and Fringe $ 1 $ — $ 1 $ 1 Interest Cost — 1 1 2 Amortization of Prior Service Credits (2) (2) (6) (5) Total Included in Other Income - Net (2) (1) (5) (3) Net Periodic Benefit Credit $ (1) $ (1) $ (4) $ (2) |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Activity Related to Long-Term Debt | Total activity related to long-term debt as of the end of third quarter 2021 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 10, Fair Value Measurements. (Dollars in millions) Current Portion Long-term Portion Total Long-term Debt as of December 31, 2020 $ 401 $ 16,304 $ 16,705 2021 Activity: Long-term Debt Repaid (390) — (390) Reclassifications 175 (175) — Finance Lease Obligations and Debt Assumed (a) 25 43 68 Discount, Premium and Other Activity — 10 10 Long-term Debt as of September 30, 2021 $ 211 $ 16,182 $ 16,393 (a) In third quarter 2021, finance lease obligations and debt were assumed related to the Company's acquisition of Quality Carriers on July 1, 2021. See Note 12, Business Combinations. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Lines of Business | The following table presents the Company’s revenues disaggregated by market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors: Third Quarters Nine Months (Dollars in millions) 2021 2020 2021 2020 Chemicals $ 624 $ 566 $ 1,810 $ 1,723 Agricultural and Food Products 343 335 1,062 1,011 Forest Products (a) 231 209 684 625 Automotive 209 271 661 645 Metals and Equipment 206 159 596 500 Minerals 162 144 439 405 Fertilizers (a) 106 93 350 303 Total Merchandise 1,881 1,777 5,602 5,212 Intermodal 509 445 1,488 1,226 Coal 460 330 1,267 1,022 Trucking (b) 200 — 200 — Other 242 96 538 298 Total $ 3,292 $ 2,648 $ 9,095 $ 7,758 (a) Effective first quarter 2021, changes were made in the categorization of certain lines of business, impacting Forest Products and Fertilizers. The impacts were not material and prior periods have been reclassified to conform to the current presentation. (b) Effective third quarter 2021, Trucking revenue is comprised of revenue from the operations of Quality Carriers, which was acquired by CSX effective July 1, 2021. |
Schedule of Accounts Receivable, Net | The Company’s accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for credit losses. (Dollars in millions) September 30, December 31, Freight Receivables $ 950 $ 716 Freight Allowance for Credit Losses (14) (16) Freight Receivables, net 936 700 Non-Freight Receivables 402 224 Non-Freight Allowance for Credit Losses (12) (12) Non-Freight Receivables, net 390 212 Total Accounts Receivable, net $ 1,326 $ 912 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Investment Assets | The Company's investment assets are summarized in the following table. (Dollars in Millions) September 30, December 31, Corporate Bonds $ 65 $ 68 Government Securities 28 33 Total investments at fair value $ 93 $ 101 Total investments at amortized cost $ 84 $ 89 |
Schedule of Investment Maturities | These investments have the following maturities: (Dollars in millions) September 30, December 31, Less than 1 year $ 3 $ 2 1 - 5 years 28 22 5 - 10 years 14 23 Greater than 10 years 48 54 Total investments at fair value $ 93 $ 101 |
Schedule of Fair Value and Carrying Value of Long-Term Debt | The fair value and carrying value of the Company's long-term debt is as follows: (Dollars in millions) September 30, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 19,654 $ 21,076 Carrying Value 16,393 16,705 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Changes in AOCI balance by Component | Changes in the AOCI balance by component are shown in the following table. Amounts reclassified in pension and other post-employment benefits to net earnings relate to the amortization of actuarial losses and are included in other income - net on the consolidated income statements. See Note 6, Employee Benefit Plans, for further information. Interest rate derivatives consist of forward starting interest rate swaps classified as cash flow hedges. See Note 7, Debt and Credit Agreements, for further information. Other primarily represents CSX's share of AOCI of equity method investees. Amounts reclassified in other to net earnings are included in purchased services and other or equipment and other rents on the consolidated income statements. Pension and Other Post-Employment Benefits Interest Rate Derivatives Other Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Balance December 31, 2020, Net of Tax $ (598) $ 62 $ (62) $ (598) Other Comprehensive Income (Loss) Income Before Reclassifications — 36 — 36 Amounts Reclassified to Net Earnings 50 — (2) 48 Tax Expense (12) (8) — (20) Total Other Comprehensive Income 38 28 (2) 64 Balance September 30, 2021, Net of Tax $ (560) $ 90 $ (64) $ (534) |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Allocation of Total Consideration to Fair Value of Assets and Liabilities of Quality Carriers | Any adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. The preliminary allocation of total consideration to the fair values of the acquired assets and liabilities of Quality Carriers is summarized in the table below. (Dollars in millions) July 1, 2021 Assets Acquired: Cash and Cash Equivalents $ 3 Accounts Receivable, net 113 Properties and Equipment, net 225 Goodwill 200 Intangible Assets 190 Other Assets 11 Total Assets Acquired $ 742 Liabilities Assumed: Accounts Payable and Accrued Liabilities 48 Finance Lease Obligations and Notes Payable 68 Casualty, Environmental and Other Reserves 60 Other Long-term Liabilities 20 Total Liabilities Assumed 196 Fair Value of Assets Acquired, Net of Liabilities Assumed: $ 546 |
Nature of Operations and Sign_3
Nature of Operations and Significant Accounting Policies (Details) $ in Millions | Jun. 28, 2021 | Jun. 18, 2021shares | Jun. 04, 2021 | Apr. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($)statemi | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)statemi | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Mar. 26, 2021USD ($)propertyphase | Dec. 31, 2020USD ($) | |
Revenue from External Customer [Line Items] | |||||||||||||
Number of rail route miles | mi | 19,500 | 19,500 | |||||||||||
Number of states rail network serves | state | 23 | 23 | |||||||||||
Gain recognized on property dispositions | $ 60 | $ 4 | $ 430 | $ 33 | |||||||||
Proceeds from property dispositions | 297 | $ 51 | |||||||||||
Stock split conversion ratio | 3 | 3 | |||||||||||
Number of additional shares of common stock received for each share held after stock split (in shares) | shares | 2 | ||||||||||||
Reclassification to other capital | (11,455) | (11,455) | $ (11,259) | [1] | |||||||||
Reclassification from retained earnings | 24 | 24 | $ 0 | 152 | [1] | ||||||||
Revision of Prior Period, Reclassification, Adjustment | Stock split reclassification adjustment | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Reclassification to other capital | 1,000 | ||||||||||||
Reclassification from retained earnings | $ 1,000 | ||||||||||||
Non-Freight Receivables | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Receivable recorded from sale of property | 402 | 402 | $ 224 | ||||||||||
Virginia Line Segments | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Number of property rights for sale | property | 3 | ||||||||||||
Number of phases to complete property rights sale transaction | phase | 3 | ||||||||||||
Total sale price | $ 525 | ||||||||||||
Gain recognized on property dispositions | $ 349 | ||||||||||||
Proceeds from property dispositions | $ 200 | ||||||||||||
Virginia Line Segments | Subsequent Event | Forecast | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Proceeds from property dispositions | $ 200 | ||||||||||||
Virginia Line Segments | Non-Freight Receivables | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Receivable recorded from sale of property | $ 168 | $ 168 | |||||||||||
[1] | Certain prior year data has been retroactively adjusted to reflect the stock split effective June 28, 2021 or reclassified to conform to the current presentation. See accompanying notes to consolidated financial statements. |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic Earnings Per Share, Assuming Dilution (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Numerator: | ||||||||||
Net Earnings | $ 968 | $ 1,173 | $ 706 | $ 736 | $ 499 | $ 770 | $ 2,847 | $ 2,005 | ||
Denominator: | ||||||||||
Average Common Shares Outstanding (in shares) | 2,237 | 2,295 | [1] | 2,263 | 2,302 | [1] | ||||
Other Potentially Dilutive Common Shares (in shares) | 5 | 5 | [1] | 5 | 5 | [1] | ||||
Average Common Shares Outstanding, Assuming Dilution (in shares) | 2,242 | 2,300 | [1] | 2,268 | 2,307 | [1] | ||||
Net Earnings Per Share, Basic (in dollars per share) | $ 0.43 | $ 0.32 | [1] | $ 1.26 | $ 0.87 | [1] | ||||
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 0.43 | $ 0.32 | [1] | $ 1.26 | $ 0.87 | [1] | ||||
[1] | All prior period share and per share data has been retroactively adjusted to reflect the stock split effective June 28, 2021. Certain prior year data has been reclassified to conform to the current presentation. |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Stock Options Excluded from Diluted Earnings Per Share Calculation (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Stock Options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Stock Options Excluded from Diluted EPS (in shares) | [1] | 2 | 6 | 2 | 6 |
[1] | All prior period share and per share data has been retroactively adjusted to reflect the stock split effective June 28, 2021. Certain prior year data has been reclassified to conform to the current presentation. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) | Jun. 28, 2021$ / shares | Jun. 04, 2021 | Mar. 31, 2021 | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021$ / shares | Mar. 31, 2021$ / shares | Sep. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2020$ / shares | [1] | Mar. 31, 2020$ / shares | [1] | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($)shares | Oct. 21, 2020USD ($) | Jan. 31, 2019USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||
Remaining share repurchase authority amount | $ 3,600,000,000 | $ 3,600,000,000 | $ 3,600,000,000 | ||||||||||||||
Payments for shares repurchased | $ 1,064,000,000 | $ 48,000,000 | $ 2,316,000,000 | $ 664,000,000 | |||||||||||||
Shares received (in shares) | shares | 34,000,000 | 2,000,000 | 74,000,000 | 31,000,000 | |||||||||||||
Increase in quarterly dividend percentage | 8.00% | ||||||||||||||||
Common stock dividends (in dollars per share) | $ / shares | $ 0.28 | $ 0.093 | $ 0.093 | $ 0.093 | $ 0.093 | $ 0.087 | [1] | $ 0.087 | $ 0.087 | ||||||||
Stock split conversion ratio | 3 | 3 | |||||||||||||||
January 2019 program | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||
Authorized share repurchase program amount | $ 5,000,000,000 | ||||||||||||||||
October 2020 program | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||
Authorized share repurchase program amount | $ 5,000,000,000 | ||||||||||||||||
Structured Agreements | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||
Payments for shares repurchased | $ 150,000,000 | $ 378,000,000 | |||||||||||||||
Shares received (in shares) | shares | 5,000,000 | 12,000,000 | |||||||||||||||
Shares outstanding (in shares) | shares | 0 | 0 | 0 | ||||||||||||||
[1] | All prior period share and per share data has been retroactively adjusted to reflect the stock split effective June 28, 2021. Certain prior year data has been reclassified to conform to the current presentation. |
Earnings Per Share - Share Repu
Earnings Per Share - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Shares Repurchased (in shares) | 34 | 2 | 74 | 31 |
Cost of Shares | $ 1,064 | $ 48 | $ 2,316 | $ 664 |
Stock Plans and Share-Based C_3
Stock Plans and Share-Based Compensation - Pre-tax Expense and Income Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | $ 13 | $ 20 | $ 72 | $ 32 |
Income Tax Benefit | 4 | 6 | 19 | 17 |
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | 6 | 14 | 44 | 6 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | 3 | 3 | 13 | 16 |
Restricted Stock Units and Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | 3 | 2 | 10 | 5 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | 1 | 1 | 3 | 3 |
Stock Awards for Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | $ 0 | $ 0 | $ 2 | $ 2 |
Stock Plans and Share-Based C_4
Stock Plans and Share-Based Compensation - Narrative (Details) | May 31, 2018USD ($)shares | Feb. 28, 2021shares | Sep. 30, 2020shares |
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (split-adjusted) (in shares) | 1,831,000 | 0 | |
LTIP | Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of grants with performance vesting, average annual operating income growth | 0.50 | ||
Percentage of grants with performance vesting, cumulative free cash flow | 50.00% | ||
Number of equivalent shares of CSX common stock per unit of award (in shares) | 1 | ||
LTIP | Performance Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage range for participants | 0.00% | ||
LTIP | Performance Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage range for participants | 200.00% | ||
LTIP | Performance Units | Certain Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (split-adjusted) (in shares) | 566,000 | ||
LTIP | Performance Units | Certain Executive Officers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (split-adjusted) (in shares) | 0 | ||
Percentage of payout subject to upward or downward adjustment (up to) | 0.25 | ||
LTIP | Performance Units | Certain Executive Officers | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage range for participants | 250.00% | ||
LTIP | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of stock options (in years) | 10 years | ||
Award vesting period (in years) | 3 years | ||
LTIP | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (split-adjusted) (in shares) | 490,000 | ||
Number of equivalent shares of CSX common stock per unit of award (in shares) | 1 | ||
Award vesting period (in years) | 3 years | ||
ESPP | Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock registered for ESPP (in shares) | 12,000,000 | ||
Minimum payroll deduction percentage | 1.00% | ||
Maximum payroll deduction percentage | 10.00% | ||
Maximum stock value available for purchase | $ | $ 25,000 | ||
Percentage of shares market price | 85.00% | ||
Share offering period | 6 months |
Stock Plans and Share-Based C_5
Stock Plans and Share-Based Compensation - Weighted Average Assumptions Used for Performance Units (Details) - Performance Units | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Weighted-Average Assumptions Used: | ||
Risk-free Interest Rate | 0.20% | 1.40% |
Annualized Volatility | 33.60% | 24.50% |
Expected Life (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days |
Stock Plans and Share-Based C_6
Stock Plans and Share-Based Compensation - Fair Value Assumptions Used for Stock Options (Details) - Stock Options - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-Average Grant Date Fair Value (in dollars per share) | $ 8.86 | $ 7.94 | $ 6.29 |
Weighted-Average Assumptions Used: | |||
Annual Dividend Yield | 1.20% | 1.20% | 1.20% |
Risk-free Interest Rate | 1.00% | 0.70% | 1.40% |
Annualized Volatility | 30.70% | 31.20% | 26.00% |
Expected Life (in years) | 6 years 3 months 18 days | 6 years | 6 years |
Other Pricing Model Inputs: | |||
Weighted-Average Grant Date Market Price of CSX Stock (strike price) (in dollars per share) | $ 32.18 | $ 29.65 | $ 26.49 |
Stock Plans and Share-Based C_7
Stock Plans and Share-Based Compensation - Shares Issued Under Employee Stock Purchase Plan (Details) - ESPP - Employee Stock Purchase Plan - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued (in shares) | 334 | 360 | 730 | 726 |
Weighted average purchase price per share (in dollars per share) | $ 24.93 | $ 19.76 | $ 21.90 | $ 20.13 |
Casualty, Environmental and O_3
Casualty, Environmental and Other Reserves - Schedule of Casualty, Environmental and Other Reserves (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Current | $ 117 | $ 90 |
Long-term | 252 | 224 |
Total | 369 | 314 |
Total Casualty | ||
Loss Contingencies [Line Items] | ||
Current | 51 | 49 |
Long-term | 139 | 147 |
Total | 190 | 196 |
Personal Injury | ||
Loss Contingencies [Line Items] | ||
Current | 44 | 38 |
Long-term | 82 | 93 |
Total | 126 | 131 |
Occupational | ||
Loss Contingencies [Line Items] | ||
Current | 7 | 11 |
Long-term | 57 | 54 |
Total | 64 | 65 |
Environmental | ||
Loss Contingencies [Line Items] | ||
Current | 36 | 23 |
Long-term | 72 | 53 |
Total | 108 | 76 |
Other | ||
Loss Contingencies [Line Items] | ||
Current | 30 | 18 |
Long-term | 41 | 24 |
Total | $ 71 | $ 42 |
Casualty, Environmental and O_4
Casualty, Environmental and Other Reserves - Narrative (Details) | Jun. 01, 2021USD ($) | Sep. 30, 2021USD ($)siteclaim | Dec. 31, 2020USD ($) |
All Contingencies Reserves [Line Items] | |||
Total reserves | $ 369,000,000 | $ 314,000,000 | |
Casualty | |||
All Contingencies Reserves [Line Items] | |||
Total reserves | 190,000,000 | 196,000,000 | |
Self-insured retention amount, per occurrence | $ 100,000,000 | $ 100,000,000 | |
Number of individual claims expected to exceed self insured retention amount | claim | 0 | ||
Environmental | |||
All Contingencies Reserves [Line Items] | |||
Total reserves | $ 108,000,000 | 76,000,000 | |
Environmental impaired sites | site | 240 | ||
Other | |||
All Contingencies Reserves [Line Items] | |||
Total reserves | $ 71,000,000 | $ 42,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 01, 2021USD ($) | Jun. 30, 2018defendant | Mar. 31, 2016partymi | May 31, 2007entityclaim | Sep. 30, 2021USD ($)mi | Sep. 30, 2020USD ($) |
Loss Contingencies [Line Items] | ||||||
Casualty and catastrophic property deductible | $ 100,000,000 | |||||
Casualty and non catastrophic property deductible | $ 75,000,000 | |||||
Pending Litigation | Fuel Surcharge Antitrust Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Class action lawsuits filed against U.S.-based Class I railroads, excluding CSXT (number of entities) | entity | 3 | |||||
Number of consolidated class action lawsuits | claim | 1 | |||||
Pending Litigation | Environmental | ||||||
Loss Contingencies [Line Items] | ||||||
Number of miles pertaining to Passaic River tidal reach required to be studied by EPA | mi | 17 | |||||
Number of miles subject to remediation | mi | 8 | |||||
Number of parties participating in allocation process under study | party | 80 | |||||
Number of parties | defendant | 110 | |||||
Minimum | Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Possible loss for certain legal proceedings | $ 3,000,000 | |||||
Maximum | Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Possible loss for certain legal proceedings | 27,000,000 | |||||
Total Casualty | ||||||
Loss Contingencies [Line Items] | ||||||
Self-insured retention amount, per occurrence (up to) | $ 100,000,000 | $ 100,000,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) | Jan. 01, 2020 | Jan. 01, 2019 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions to the Company's qualified pension plans in 2021 | $ 0 | ||
Other Post-retirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Life insurance and contributions to the medical program for eligible retirees will be eliminated (younger than) | 65 years | ||
Life insurance and contributions to the medical program for eligible retirees will be eliminated (older than) | 65 years |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Benefits Cost | ||||
Components of expense/ (income) related to net benefit expense: | ||||
Service Cost Included in Labor and Fringe | $ 10 | $ 10 | $ 28 | $ 30 |
Interest Cost | 13 | 20 | 40 | 61 |
Expected Return on Plan Assets | (46) | (43) | (139) | (130) |
Amortization of Net Loss | 18 | 15 | 55 | 43 |
Total Included in Other Income - Net | (15) | (8) | (44) | (26) |
Net Periodic Benefit (Credit)/Cost | (5) | 2 | (16) | 4 |
Other Post-retirement Benefits Cost | ||||
Components of expense/ (income) related to net benefit expense: | ||||
Service Cost Included in Labor and Fringe | 1 | 0 | 1 | 1 |
Interest Cost | 0 | 1 | 1 | 2 |
Amortization of Prior Service Credits | (2) | (2) | (6) | (5) |
Total Included in Other Income - Net | (2) | (1) | (5) | (3) |
Net Periodic Benefit (Credit)/Cost | $ (1) | $ (1) | $ (4) | $ (2) |
Debt and Credit Agreements - Ac
Debt and Credit Agreements - Activity Related to Long-Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement, Debt Instruments [Roll Forward] | ||
Long-term Debt as of December 31, 2020, Current Portion | $ 401 | |
Long-term Debt as of December 31, 2020, Long-term Portion | 16,304 | |
Long-term Debt as of December 31, 2020, Total | 16,705 | |
Long-term Debt Repaid | (390) | $ (245) |
Reclassifications | 0 | |
Finance Lease Obligations and Debt Assumed | 68 | |
Discount, Premium and Other Activity | 10 | |
Long-term Debt as of September 30, 2021, Current Portion | 211 | |
Long-term Debt as of September 30, 2021, Long-term Portion | 16,182 | |
Long-term Debt as of September 30, 2021, Total | 16,393 | |
Current Portion | ||
Movement, Debt Instruments [Roll Forward] | ||
Long-term Debt as of December 31, 2020, Current Portion | 401 | |
Long-term Debt Repaid | (390) | |
Reclassifications | 175 | |
Finance Lease Obligations and Debt Assumed | 25 | |
Discount, Premium and Other Activity | 0 | |
Long-term Debt as of September 30, 2021, Current Portion | 211 | |
Long-term Portion | ||
Movement, Debt Instruments [Roll Forward] | ||
Long-term Debt as of December 31, 2020, Long-term Portion | 16,304 | |
Long-term Debt Repaid | 0 | |
Reclassifications | (175) | |
Finance Lease Obligations and Debt Assumed | 43 | |
Discount, Premium and Other Activity | 10 | |
Long-term Debt as of September 30, 2021, Long-term Portion | $ 16,182 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jul. 09, 2020 | Apr. 29, 2020 | |
Commercial Paper | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity of credit facility | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Borrowings outstanding | 0 | 0 | |||||
3.25% Notes Due 2027 | |||||||
Line of Credit Facility | |||||||
Debt issued | $ 850,000,000 | ||||||
Debt interest rate | 3.25% | ||||||
Unsecured Revolving Credit Facility Expiring March 2024 | Credit Facility | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity of credit facility | 1,200,000,000 | 1,200,000,000 | |||||
Borrowings outstanding | 0 | 0 | |||||
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedge | |||||||
Line of Credit Facility | |||||||
Aggregate notional value of interest forward interest rate swap | 116,000,000 | 116,000,000 | $ 80,000,000 | $ 500,000,000 | $ 250,000,000 | ||
Unrealized gains recorded net of tax in other comprehensive income related to hedge | $ 7,000,000 | $ 25,000,000 | $ 28,000,000 | $ 34,000,000 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Lines of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,292 | $ 2,648 | $ 9,095 | $ 7,758 |
Total Merchandise | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,881 | 1,777 | 5,602 | 5,212 |
Chemicals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 624 | 566 | 1,810 | 1,723 |
Agricultural and Food Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 343 | 335 | 1,062 | 1,011 |
Forest Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 231 | 209 | 684 | 625 |
Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 209 | 271 | 661 | 645 |
Metals and Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 206 | 159 | 596 | 500 |
Minerals | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 162 | 144 | 439 | 405 |
Fertilizers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 106 | 93 | 350 | 303 |
Intermodal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 509 | 445 | 1,488 | 1,226 |
Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 460 | 330 | 1,267 | 1,022 |
Trucking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 200 | 0 | 200 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 242 | $ 96 | $ 538 | $ 298 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Payment period after invoice date | 15 days | |
Expected period to recognized unearned portion of revenue for freight services in transit | The Company expects to recognize the unearned portion of revenue for freight services in transit within one week of the reporting date. | |
Non-Freight Receivables | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Amount related to conveyance of an easement included in non-freight receivables | $ 402 | $ 224 |
Non-Freight Receivables | Virginia Line Segments | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Amount related to conveyance of an easement included in non-freight receivables | $ 168 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Average transit time to complete a rail shipment | 2 days | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Average transit time to complete a rail shipment | 8 days |
Revenues - Accounts Receivable,
Revenues - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accounts Receivable, net | $ 1,326 | $ 912 |
Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, gross | 950 | 716 |
Allowance for Credit Losses | (14) | (16) |
Total Accounts Receivable, net | 936 | 700 |
Non-Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, gross | 402 | 224 |
Allowance for Credit Losses | (12) | (12) |
Total Accounts Receivable, net | $ 390 | $ 212 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Investment Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | $ 93 | $ 101 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at amortized cost | 84 | 89 |
Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | 93 | 101 |
Level 2 | Fair Value | Corporate Bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | 65 | 68 |
Level 2 | Fair Value | Government Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | $ 28 | $ 33 |
Fair Value Measurements - Inves
Fair Value Measurements - Investment Maturities (Details) - Fair Value - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Less than 1 year | $ 3 | $ 2 |
1 - 5 years | 28 | 22 |
5 - 10 years | 14 | 23 |
Greater than 10 years | 48 | 54 |
Total investments at fair value | $ 93 | $ 101 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value and Carrying Value of Long-Term Debt (Details) - Level 2 - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt (Including Current Maturities) | $ 19,654 | $ 21,076 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt (Including Current Maturities) | $ 16,393 | $ 16,705 |
Fair Value Measurements - Inter
Fair Value Measurements - Interest Rate Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Jul. 09, 2020 | Apr. 29, 2020 |
Interest Rate Swap | Cash Flow Hedge | Designated as Hedging Instrument | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset value of the forward interest rate swap | $ 116 | $ 80 | $ 500 | $ 250 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||||||||
Total comprehensive earnings, net of tax | $ 985 | $ 1,152 | $ 774 | $ 770 | $ 519 | $ 773 | $ 2,911 | $ 2,062 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Changes in AOCI Balance by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | |||||||
Other Comprehensive Income (Loss) | |||||||||||||
Income Before Reclassifications | $ 36 | ||||||||||||
Amounts Reclassified to Net Earnings | 48 | ||||||||||||
Tax Expense | (20) | ||||||||||||
Total Other Comprehensive Income | $ 17 | $ (21) | $ 68 | $ 34 | $ 20 | $ 3 | 64 | ||||||
Pension and Other Post-Employment Benefits | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance December 31, 2020, Net of Tax | (598) | (598) | |||||||||||
Other Comprehensive Income (Loss) | |||||||||||||
Income Before Reclassifications | 0 | ||||||||||||
Amounts Reclassified to Net Earnings | 50 | ||||||||||||
Tax Expense | (12) | ||||||||||||
Total Other Comprehensive Income | 38 | ||||||||||||
Balance September 30, 2021, Net of Tax | (560) | (560) | |||||||||||
Interest Rate Derivatives | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance December 31, 2020, Net of Tax | 62 | 62 | |||||||||||
Other Comprehensive Income (Loss) | |||||||||||||
Income Before Reclassifications | 36 | ||||||||||||
Amounts Reclassified to Net Earnings | 0 | ||||||||||||
Tax Expense | (8) | ||||||||||||
Total Other Comprehensive Income | 28 | ||||||||||||
Balance September 30, 2021, Net of Tax | 90 | 90 | |||||||||||
Other | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance December 31, 2020, Net of Tax | (62) | (62) | |||||||||||
Other Comprehensive Income (Loss) | |||||||||||||
Income Before Reclassifications | 0 | ||||||||||||
Amounts Reclassified to Net Earnings | (2) | ||||||||||||
Tax Expense | 0 | ||||||||||||
Total Other Comprehensive Income | (2) | ||||||||||||
Balance September 30, 2021, Net of Tax | (64) | (64) | |||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||
Balance December 31, 2020, Net of Tax | (598) | (598) | |||||||||||
Other Comprehensive Income (Loss) | |||||||||||||
Total Other Comprehensive Income | 17 | [1] | $ (21) | [1] | $ 68 | [1] | $ 34 | [2] | $ 20 | [2] | $ 3 | [2] | |
Balance September 30, 2021, Net of Tax | $ (534) | $ (534) | |||||||||||
[1] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $137 million, $142 million, and $136 million as of first, second, and third quarters 2021, respectively. For additional information, see Note 11, Other Comprehensive Income. | ||||||||||||
[2] | Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $183 million, $178 million, and $165 million as of first, second, and third quarters 2020, respectively. For additional information, see Note 11, Other Comprehensive Income. |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Millions | Jul. 01, 2021USD ($) | Sep. 30, 2021USD ($)mi | Sep. 30, 2021USD ($)mi | May 12, 2021terminalAndFacility | Nov. 30, 2020mi |
Business Acquisition [Line Items] | |||||
Number of rail route miles | mi | 19,500 | 19,500 | |||
Quality Carriers, Inc. | |||||
Business Acquisition [Line Items] | |||||
Purchase price in cash paid for acquisition | $ 546 | ||||
Goodwill | 200 | ||||
Cash and cash equivalents acquired | 3 | ||||
Properties acquired | 225 | ||||
Intangible assets acquired | 190 | ||||
Acquisition related costs | $ 12 | $ 16 | |||
Quality Carriers, Inc. | Customer Lists | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 160 | ||||
Amortization period of intangible assets acquired | 20 years | ||||
Quality Carriers, Inc. | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 30 | ||||
Amortization period of intangible assets acquired | 15 years | ||||
Quality Carriers, Inc. | Quality Carriers, Inc. | United States, Canada and Mexico | |||||
Business Acquisition [Line Items] | |||||
Number of terminals and facilities (over) | terminalAndFacility | 100 | ||||
Pan Am Systems, Inc. | Pan Am Systems, Inc. | |||||
Business Acquisition [Line Items] | |||||
Number of rail route miles | mi | 1,200 | ||||
Number of partial interests in rail route miles (more than) | mi | 600 |
Business Combinations - Prelimi
Business Combinations - Preliminary Allocation of Total Consideration to Fair Value of Assets and Liabilities of Quality Carriers (Details) - Quality Carriers $ in Millions | Jul. 01, 2021USD ($) |
Assets Acquired: | |
Cash and Cash Equivalents | $ 3 |
Accounts Receivable, net | 113 |
Properties and Equipment, net | 225 |
Goodwill | 200 |
Intangible Assets | 190 |
Other Assets | 11 |
Total Assets Acquired | 742 |
Liabilities Assumed: | |
Accounts Payable and Accrued Liabilities | 48 |
Finance Lease Obligations and Notes Payable | 68 |
Casualty, Environmental and Other Reserves | 60 |
Other Long-term Liabilities | 20 |
Total Liabilities Assumed | 196 |
Fair Value of Assets Acquired, Net of Liabilities Assumed: | $ 546 |