Cover
Cover | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
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, $1 Par Value |
Trading Symbol | CSX |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 2,033,054,922 |
Entity Central Index Key | 0000277948 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement | ||
Revenue | $ 3,706 | $ 3,413 |
Expense | ||
Labor and Fringe | 723 | 692 |
Purchased Services and Other | 688 | 675 |
Fuel | 364 | 331 |
Depreciation and Amortization | 393 | 360 |
Equipment and Other Rents | 82 | 100 |
Gains on Property Dispositions | (8) | (27) |
Total Expense | 2,242 | 2,131 |
Operating Income | 1,464 | 1,282 |
Interest Expense | (201) | (179) |
Other Income - Net | 41 | 26 |
Earnings Before Income Taxes | 1,304 | 1,129 |
Income Tax Expense | (317) | (270) |
Net Earnings | $ 987 | $ 859 |
Per Common Share (Note 2) | ||
Net Earnings Per Share, Basic (in dollars per share) | $ 0.48 | $ 0.39 |
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 0.48 | $ 0.39 |
Average Shares Outstanding (in shares) | 2,054 | 2,188 |
Average Shares Outstanding, Assuming Dilution (in shares) | 2,058 | 2,193 |
CONDENSED CONSOLIDATED COMPREHE
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Total Comprehensive Earnings (Note 10) | $ 989 | $ 890 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,291 | $ 1,958 |
Short-term Investments | 178 | 129 |
Accounts Receivable - Net (Note 8) | 1,377 | 1,313 |
Materials and Supplies | 394 | 341 |
Other Current Assets | 115 | 108 |
Total Current Assets | 3,355 | 3,849 |
Properties | 48,441 | 48,105 |
Accumulated Depreciation | (14,148) | (13,863) |
Properties - Net | 34,293 | 34,242 |
Investment in Affiliates and Other Companies | 2,313 | 2,292 |
Right-of-Use Lease Asset | 489 | 505 |
Goodwill and Other Intangible Assets - Net | 500 | 502 |
Other Long-term Assets | 528 | 522 |
Total Assets | 41,478 | 41,912 |
Current Liabilities: | ||
Accounts Payable | 1,203 | 1,130 |
Labor and Fringe Benefits Payable | 367 | 707 |
Casualty, Environmental and Other Reserves (Note 4) | 151 | 144 |
Current Maturities of Long-term Debt (Note 7) | 11 | 151 |
Income and Other Taxes Payable | 361 | 111 |
Other Current Liabilities | 228 | 228 |
Total Current Liabilities | 2,321 | 2,471 |
Casualty, Environmental and Other Reserves (Note 4) | 287 | 292 |
Long-term Debt (Note 7) | 17,911 | 17,896 |
Deferred Income Taxes - Net | 7,605 | 7,569 |
Long-term Lease Liability | 478 | 488 |
Other Long-term Liabilities | 542 | 571 |
Total Liabilities | 29,144 | 29,287 |
Shareholders' Equity: | ||
Common Stock, $1 Par Value | 2,033 | 2,066 |
Other Capital | 587 | 574 |
Retained Earnings | 10,092 | 10,363 |
Accumulated Other Comprehensive Loss (Note 10) | (386) | (388) |
Non-controlling Minority Interest | 8 | 10 |
Total Shareholders' Equity | 12,334 | 12,625 |
Total Liabilities and Shareholders' Equity | $ 41,478 | $ 41,912 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net Earnings | $ 987 | $ 859 |
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 393 | 360 |
Deferred Income Taxes | 35 | 37 |
Gains on Property Dispositions | (8) | (27) |
Other Operating Activities | (31) | 4 |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | (63) | (131) |
Other Current Assets | (72) | (40) |
Accounts Payable | 70 | 82 |
Income and Other Taxes Payable | 266 | 225 |
Other Current Liabilities | (326) | (70) |
Net Cash Provided by Operating Activities | 1,251 | 1,299 |
INVESTING ACTIVITIES | ||
Property Additions | (443) | (331) |
Purchases of Short-term Investments | (101) | (19) |
Proceeds from Sales of Short-term Investments | 53 | 0 |
Proceeds and Advances from Property Dispositions | 8 | 8 |
Business Acquisition, Net of Cash Acquired | (2) | (9) |
Other Investing Activities | 5 | (17) |
Net Cash Used In Investing Activities | (480) | (368) |
FINANCING ACTIVITIES | ||
Long-term Debt Repaid (Note 7) | (142) | (6) |
Dividends Paid | (226) | (218) |
Shares Repurchased | (1,067) | (1,016) |
Other Financing Activities | (3) | 6 |
Net Cash Used in Financing Activities | (1,438) | (1,234) |
Net Decrease in Cash and Cash Equivalents | (667) | (303) |
CASH AND CASH EQUIVALENTS | ||
Cash and Cash Equivalents at Beginning of Period | 1,958 | 2,239 |
Cash and Cash Equivalents at End of Period | $ 1,291 | $ 1,936 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Common Shares Outstanding (Thousands) | Common Stock and Other Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Minority Interest | |
Beginning Balance (in shares) at Dec. 31, 2021 | 2,201,787 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 13,500 | $ 2,268 | $ 11,630 | $ (408) | [1] | $ 10 | |
Comprehensive Earnings: | |||||||
Net Earnings | 859 | 859 | |||||
Other Comprehensive Income | 31 | 31 | [1] | ||||
Total Comprehensive Earnings (Note 10) | 890 | ||||||
Common stock dividends, per share | $ (218) | (218) | |||||
Share Repurchases (in shares) | (29,000) | (29,365) | |||||
Share Repurchases | $ (1,016) | (29) | (987) | ||||
Stock Option Exercises and Other (in shares) | 1,831 | ||||||
Stock Option Exercises and Other | 39 | 38 | 1 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 2,174,253 | ||||||
Ending Balance at Mar. 31, 2022 | 13,195 | 2,277 | 11,284 | (377) | [1] | 11 | |
Comprehensive Earnings: | |||||||
Associated tax of accumulated other comprehensive loss balances | 99 | ||||||
Beginning Balance (in shares) at Dec. 31, 2022 | 2,066,367 | ||||||
Beginning Balance at Dec. 31, 2022 | 12,625 | 2,640 | 10,363 | (388) | [1] | 10 | |
Comprehensive Earnings: | |||||||
Net Earnings | 987 | 987 | |||||
Other Comprehensive Income | 2 | 2 | [1] | ||||
Total Comprehensive Earnings (Note 10) | 989 | ||||||
Common stock dividends, per share | $ (226) | (226) | |||||
Share Repurchases (in shares) | (35,000) | (35,157) | |||||
Share Repurchases | $ (1,067) | (35) | (1,032) | ||||
Stock Option Exercises and Other (in shares) | 1,865 | ||||||
Stock Option Exercises and Other | 13 | 15 | (2) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 2,033,075 | ||||||
Ending Balance at Mar. 31, 2023 | $ 12,334 | $ 2,620 | $ 10,092 | (386) | [1] | $ 8 | |
Comprehensive Earnings: | |||||||
Associated tax of accumulated other comprehensive loss balances | $ 121 | ||||||
[1]Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $121 million and $99 million as of March 31, 2023, and March 31, 2022, respectively. For additional information, see Note 10, Other Comprehensive Income. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | ||
Feb. 14, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.10 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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 operatin g subsidiary, CSX Transportation, Inc. (“CSXT”), provides an important link to the transportation supply chain through its approximately 20,000 route mile rail network and serves major population centers in 26 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. On June 1, 2022, CSX completed its acquisition of Pan Am Systems, Inc. (“Pan Am”), which is the parent compan y of Pan Am Railways, Inc. This acquisition expanded CSXT’s reach in the Northeastern United States. CSXT is also responsible for the Company's real estate sales, leasing, acquisition and management and development activities, substantially all of which 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. Quality Carriers is the largest provider of bulk liquid chemicals truck transportation in North America. 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. The timing and amount of gains recognized were based on the allocation of fair value to each conveyance, the timing of conveyances and collectability. Over the course of this transaction, which was completed in 2022, total proceeds of $525 million were collected and total gains of $493 million were recognized. A gain of $20 million was recognized in first quarter 2022 related to the closing of the second phase. 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. Fiscal Year The Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to “first quarter(s)” or “three months” indicate CSX's fiscal periods ending March 31, 2023 and March 31, 2022, and references to "year-end" indicate the fiscal year ended December 31, 2022. New Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, 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. The guidance was effective upon issuance and at present can generally be applied through December 31, 2024. As of March 31, 2023, the Company has not applied the practical expedient to any contracts. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
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. First Quarters 2023 2022 Numerator (Dollars in millions) : Net Earnings $ 987 $ 859 Denominator (Units in millions) : Average Common Shares Outstanding 2,054 2,188 Other Potentially Dilutive Common Shares 4 5 Average Common Shares Outstanding, Assuming Dilution 2,058 2,193 Net Earnings Per Share, Basic $ 0.48 $ 0.39 Net Earnings Per Share, Assuming Dilution $ 0.48 $ 0.39 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. First Quarters 2023 2022 Antidilutive Stock Options Excluded from Diluted EPS (Units in millions) 4 1 NOTE 2. Earnings Per Share, continued Share Repurchases In July 2022, the share repurchase program announced in October 2020 was completed and the Company announced a $5 billion share repurchase program. Total repurchase authority remaining was $2.2 billion as of March 31, 2023. 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. During first quarters 2023 and 2022, the Company engaged in the following repurchase activities: First Quarters 2023 2022 Shares Repurchased (Millions) 35 29 Cost of Shares (Dollars in millions) $ 1,067 $ 1,016 Dividend Increase |
Stock Plans and Share-Based Com
Stock Plans and Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
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 and restricted stock units for management and stock grants for directors. Share-based compensation expense for awards under share-based compensation plans 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. Alternatively, expense is recognized upon death or over an accelerated service period for 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. First Quarters (Dollars in millions) 2023 2022 Share-Based Compensation Expense: Restricted Stock Units $ 4 $ 6 Performance Units 3 20 Stock Options 3 7 Stock Awards for Directors 2 2 Employee Stock Purchase Plan 1 1 Total Share-Based Compensation Expense $ 13 $ 36 Income Tax Benefit $ 4 $ 9 Long-term Incentive Plan On February 15, 2023, the Company granted the following awards under a new long-term incentive plan ("LTIP") for the years 2023 through 2025, which was adopted under the CSX 2019 Stock and Incentive Award Plan. Granted Weighted Avg. Fair Value Performance Units 680 $ 32.77 Restricted Stock Units 648 31.67 Stock Options 1,067 9.86 NOTE 3. Stock Plans and Share-Based Compensation, continued Performance Units Payouts will be made in CSX common stock with a payout range for most participants 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. The fair values of performance units granted to certain executive officers were calculated using a Monte-Carlo simulation model. Measurement against goals related to both average annual operating income growth and CSX Cash Earnings ("CCE"), in each case excluding non-recurring items as defined in the plan, will each comprise 50% of the payout. As defined under the plan, CCE is a cash-flow based measure of economic profit that incentivizes strategic investments earning more than the required return and is calculated as CSX’s gross cash earnings (after-tax EBITDA) minus the required return on gross operating assets. Stock Options 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. These awards are time-based and are not based upon attainment of performance goals. The fair values of stock option awards were estimated at the grant date using the Black-Scholes valuation model. Restricted Stock Units The restricted stock units awarded vest over three years in equal installments each year on the anniversary of the grant date and are settled in CSX common stock on a one-for-one basis. These awards are time-based and are not based upon CSX's attainment of performance goals. For more information related to the Company's outstanding long-term incentive compensation, see CSX's most recent annual report on Form 10-K. |
Casualty, Environmental and Oth
Casualty, Environmental and Other Reserves | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, 2023 December 31, 2022 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 40 $ 87 $ 127 $ 40 $ 86 $ 126 Occupational 10 56 66 10 58 68 Total Casualty 50 143 193 50 144 194 Environmental 53 109 162 53 108 161 Other 48 35 83 41 40 81 Total $ 151 $ 287 $ 438 $ 144 $ 292 $ 436 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 $193 million and $194 million as of March 31, 2023 and December 31, 2022, respectively, represent accruals for personal injury, occupational disease and occupational injury claims primarily related to railroad operations. The Company's self-insured retention amount for casualty claims is $100 million per occurrence. Currently, no individual claim is expected to exceed the self-insured retention amount. 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 qua rterly and is reviewed by management. This analysis did not result in a material adjustment to the personal injury reserve in the quarters ended March 31, 2023 or March 31, 2022. 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). The Company retains an independent actuary to analyze the Company’s historical claim filings, settlemen t 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. The analysis did not result in a material adjustment to the occupational reserve in the quarters ended March 31, 2023 or March 31, 2022 . NOTE 4. Casualty, Environmental and Other Reserves, continued Environmental Environmental reserves were $162 million and $161 million as of March 31, 2023, and December 31, 2022, 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. The Company reviews its role with respect to each site identified at least quarterly. 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. 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 Other reserves were $83 million and $81 million as of March 31, 2023 and December 31, 2022, respectively. Other reserves include liabilities for various claims, such as automobile, property, general liability, workers' compensation and longshoremen disability claims. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 up to $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 negot iates 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. 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 b e $3 million to $22 million in aggregate at March 31, 2023. 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 oth er 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 the class was not certified, individual shippers have since brought claims against the railroads, which 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. For the lower 8 miles of the Study Area, EPA issued its Record of Decision detailing the agency’s mandated remedial process in March 2016. 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. For the remainder of the Study Area, EPA has selected an interim remedy in a Record of Decision dated September 28, 2021. On March 2, 2022, EPA issued a Notice Letter to Pharmacia, Occidental Chemical Corporation and eight other parties alleging they are liable under Section 107(a) of CERCLA for releases or threatened releases of hazardous substances and requesting each party, individually or collectively, submit good faith offers to EPA in connection with the Study Area. CSX, on behalf of Pharmacia, responded to the Notice Letter and submitted a good faith offer to EPA on June 27, 2022, following meetings with a mediator from EPA’s Conflict Prevention and Resolution Center. Negotiations with EPA and other parties to resolve this matter continue. On March 2, 2023, the EPA issued an administrative order requiring Occidental Chemical Corporation to design the interim remedy for the remainder of the Study Area. CSXT is also defending and indemnifying Pharmacia with regard to the Property in litigation filed by Occidental Chemical Corporation, 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 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. CSXT is also defending and indemnifying Pharmacia in a cooperative natural resource damages assessment process related to the Property. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel. The CSX Pension Plan, the largest plan based on benefit obligation, was closed to new participants beginning in 2020. 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 First Quarters (Dollars in millions) 2023 2022 Service Cost Included in Labor and Fringe $ 6 $ 8 Interest Cost 28 16 Expected Return on Plan Assets (41) (47) Amortization of Net Loss 7 12 Total Included in Other Income - Net (6) (19) Net Periodic Benefit Credit $ — $ (11) Qualified pension plan obligations are funded in accordance with regulatory requirements and with an objective of meeting or exceeding minimum funding requirements necessary to avoid restrictions on flexibility of plan operation and benefit payments. No c |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Total activity related to long-term debt as of the end of first quarter 2023 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 9, Fair Value Measurements . (Dollars in millions) Current Portion Long-term Portion Total Long-term Debt as of December 31, 2022 $ 151 $ 17,896 $ 18,047 2023 Activity: Long-term Debt Repaid (142) — (142) Reclassifications 2 (2) — Hedging, Discount, Premium and Other Activity — 17 17 Long-term Debt as of March 31, 2023 $ 11 $ 17,911 $ 17,922 Interest Rate Derivatives Fair Value Hedges In first quarter 2022, CSX entered into five separate fixed-to-floating interest rate swaps classified as fair value hedges. The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to the Secured Overnight Financing Rate on a cumulative $800 million of fixed rate outstanding notes which are due between 2036 and 2040. The cumulative fair value of these swaps, which is included in other long-term liabilities on the consolidated balance sheet, wa s a liability of $103 million and $118 million as of March 31, 2023, and December 31, 2022, respectively. The associated cumulative adjustment to the hedged notes is included in long-term debt. Gains and losses resulting from changes in fair value of the interest rate swaps offset changes in the fair value of the hedged portion of the underlying debt with no gain or loss recognized due to hedge ineffectiveness. The difference in the net fixed-to-float interest settlement on the derivatives is recognized in interest expense and was not material in first quarter 2023 or 2022. The swaps will expire in 2032. If settled early, the remaining cumulative fair value adjustment to the hedged notes will be amortized over the remaining life of the associated notes. The amounts recorded in long-term debt on the consolidated balance sheet related to these fair value hedges is summarized in the table below. (Dollars in millions) March 31, 2023 December 31, 2022 Notional Value of Hedged Notes $ 800 $ 800 Cumulative Fair Value Adjustment to Hedged Notes (103) (118) Carrying Amount of Hedged Notes $ 697 $ 682 NOTE 7. Debt and Credit Agreements , continued Cash Flow Hedges The unsettled aggregate notional value of forward starting interest rate swaps, classified as cash flow hedges, executed in 2020 is $340 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. As o f March 31, 2023, and December 31, 2022, the asset value of the forward starting interest rate swaps was $124 million and $127 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 remainder of 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 a loss of $3 million in first quarter 2023 an d gain of $21 million in first quarter 2022. See Note 9, Fair Value Measurements , and Note 10, Other Comprehensive Income (Loss) , for additional information about the Company's hedges. Credit Facility On February 28, 2023, CSX replaced its existing $1.2 billion unsecured revolving credit facility with a n ew $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 Secured Overnight Financing Rate ("SOFR") or an agreed -upon replacement reference rate, plus a spread that depends upon CSX's senior unsecured debt ratings. This facility expires in February 2028. As of March 31, 2023, 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 first quarter 2023, CSX was in compliance with all covenant requirements under this facility. 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 March 31, 2023, the Co mpany had no outs tanding debt under the commercial paper program. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
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: First Quarters (Dollars in millions) 2023 2022 Chemicals $ 650 $ 618 Agricultural and Food Products 437 387 Automotive 274 227 Forest Products 261 228 Metals and Equipment 239 197 Minerals 173 144 Fertilizers 129 120 Total Merchandise 2,163 1,921 Coal 633 533 Intermodal 499 527 Trucking 233 230 Other 178 202 Total $ 3,706 $ 3,413 The Company’s accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for credit losses. 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. As of March 31, 2023, non-freight receivables includes $42 million related to an insurance recovery recognized in first quarter 2023. (Dollars in millions) March 31, December 31, Freight Receivables $ 1,056 $ 1,067 Freight Allowance for Credit Losses (17) (16) Freight Receivables, net 1,039 1,051 Non-Freight Receivables 356 279 Non-Freight Allowance for Credit Losses (18) (17) Non-Freight Receivables, net 338 262 Total Accounts Receivable, net $ 1,377 $ 1,313 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 first quarters 2023 and 2022. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Investments The Company's investment assets are carried at fair value on the consolidated balance sheet in accordance with the Fair Value Measurements and Disclosures Topic in the ASC. They are valued with assistance from a third-party trustee and consist of fixed income mutual funds, corporate bonds, government securities and short-term time deposits. The fixed income mutual funds are valued at the net asset value of shares held based on quoted market prices determined in an active market, which are Level 1 inputs. The corporate bonds and government securities are valued using broker quotes that utilize observable market inputs, which are Level 2 inputs. The carrying amount of time deposits as reported in the consolidated balance sheet, using Level 2 inputs, approximates fair value due to their short-term nature. Unrealized losses as of March 31, 2023 were not material. The Company believes any impairment of investments held with gross unrealized losses to be temporary and not the result of credit risk. The Company's investment assets are carried at fair value on the consolidated balance sheets as summarized in the following table. March 31, 2023 December 31, 2022 (Dollars in millions) Level 1 Level 2 Total Level 1 Level 2 Total Fixed Income Mutual Funds $ 77 $ — $ 77 $ 89 $ — $ 89 Corporate Bonds — 49 49 — 49 49 Time Deposits — 100 100 — — — Government Securities — 18 18 — 58 58 Total investments at fair value $ 77 $ 167 $ 244 $ 89 $ 107 $ 196 Total investments at amortized cost $ 247 $ 201 These investments have the following maturities: (Dollars in millions) March 31, December 31, Less than 1 year $ 178 $ 129 1 - 5 years 24 24 5 - 10 years 9 10 Greater than 10 years 33 33 Total investments at fair value $ 244 $ 196 NOTE 9. Fair Value Measurements, continued 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 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 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 and carrying value of the Company's long-term debt is as follows: (Dollars in millions) March 31, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 16,592 $ 16,135 Carrying Value 17,922 18,047 Interest Rate Derivatives The Company’s fixed-to-floating and forward starting interest rate swaps are carried at their respective fair values, which are determined 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 fixed-to-floating interest rate swaps was a liability of $103 million and $118 million as of March 31, 2023, and December 31, 2022, respectively. T he fair value of the Company’s forward starting interest rate swap asse t was $124 million and $127 million as of March 31, 2023, and December 31, 2022, respectively. See N ote 7, Debt and Credit Agreements , for further information. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) 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 derivative activity and other adjustments. Total comprehensive earnings represent the activity for a period net of tax and was $989 million and $890 million for first quarters 2023 and 2022, respectively. While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, AOCI represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. 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, 2022, Net of Tax $ (497) $ 150 $ (41) $ (388) Other Comprehensive Income (Loss) Income Before Reclassifications — (3) — (3) Amounts Reclassified to Net Earnings 4 — 2 6 Tax (Expense)/Benefit (1) — — (1) Total Other Comprehensive Income 3 (3) 2 2 Balance March 31, 2023, Net of Tax $ (494) $ 147 $ (39) $ (386) |
Nature of Operations and Sign_2
Nature of Operations and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 “first quarter(s)” or “three months” indicate CSX's fiscal periods ending March 31, 2023 and March 31, 2022, and references to "year-end" indicate the fiscal year ended December 31, 2022. |
New Accounting Pronouncements | In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, 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. The guidance was effective upon issuance and at present can generally be applied through December 31, 2024. As of March 31, 2023, the Company has not applied the practical expedient to any contracts. |
Revenue Recognition | 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 | Investments The Company's investment assets are carried at fair value on the consolidated balance sheet in accordance with the Fair Value Measurements and Disclosures Topic in the ASC. They are valued with assistance from a third-party trustee and consist of fixed income mutual funds, corporate bonds, government securities and short-term time deposits. The fixed income mutual funds are valued at the net asset value of shares held based on quoted market prices determined in an active market, which are Level 1 inputs. The corporate bonds and government securities are valued using broker quotes that utilize observable market inputs, which are Level 2 inputs. The carrying amount of time deposits as reported in the consolidated balance sheet, using Level 2 inputs, approximates fair value due to their short-term nature. Unrealized losses as of March 31, 2023 were not material. The Company believes any impairment of investments held with gross unrealized losses to be temporary and not the result of credit risk. 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 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 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) | 3 Months Ended |
Mar. 31, 2023 | |
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. First Quarters 2023 2022 Numerator (Dollars in millions) : Net Earnings $ 987 $ 859 Denominator (Units in millions) : Average Common Shares Outstanding 2,054 2,188 Other Potentially Dilutive Common Shares 4 5 Average Common Shares Outstanding, Assuming Dilution 2,058 2,193 Net Earnings Per Share, Basic $ 0.48 $ 0.39 Net Earnings Per Share, Assuming Dilution $ 0.48 $ 0.39 |
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. First Quarters 2023 2022 Antidilutive Stock Options Excluded from Diluted EPS (Units in millions) 4 1 |
Schedule of Share Repurchased by the Company | During first quarters 2023 and 2022, the Company engaged in the following repurchase activities: First Quarters 2023 2022 Shares Repurchased (Millions) 35 29 Cost of Shares (Dollars in millions) $ 1,067 $ 1,016 |
Stock Plans and Share-Based C_2
Stock Plans and Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. First Quarters (Dollars in millions) 2023 2022 Share-Based Compensation Expense: Restricted Stock Units $ 4 $ 6 Performance Units 3 20 Stock Options 3 7 Stock Awards for Directors 2 2 Employee Stock Purchase Plan 1 1 Total Share-Based Compensation Expense $ 13 $ 36 Income Tax Benefit $ 4 $ 9 |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award | On February 15, 2023, the Company granted the following awards under a new long-term incentive plan ("LTIP") for the years 2023 through 2025, which was adopted under the CSX 2019 Stock and Incentive Award Plan. Granted Weighted Avg. Fair Value Performance Units 680 $ 32.77 Restricted Stock Units 648 31.67 Stock Options 1,067 9.86 |
Casualty, Environmental and O_2
Casualty, Environmental and Other Reserves (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, 2023 December 31, 2022 (Dollars in millions) Current Long-term Total Current Long-term Total Casualty: Personal Injury $ 40 $ 87 $ 127 $ 40 $ 86 $ 126 Occupational 10 56 66 10 58 68 Total Casualty 50 143 193 50 144 194 Environmental 53 109 162 53 108 161 Other 48 35 83 41 40 81 Total $ 151 $ 287 $ 438 $ 144 $ 292 $ 436 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Expense/(Income) Related to Net Benefit Expense | Pension Benefits Cost First Quarters (Dollars in millions) 2023 2022 Service Cost Included in Labor and Fringe $ 6 $ 8 Interest Cost 28 16 Expected Return on Plan Assets (41) (47) Amortization of Net Loss 7 12 Total Included in Other Income - Net (6) (19) Net Periodic Benefit Credit $ — $ (11) |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Activity Related to Long-Term Debt | Total activity related to long-term debt as of the end of first quarter 2023 is shown in the table below. For fair value information related to the Company's long-term debt, see Note 9, Fair Value Measurements . (Dollars in millions) Current Portion Long-term Portion Total Long-term Debt as of December 31, 2022 $ 151 $ 17,896 $ 18,047 2023 Activity: Long-term Debt Repaid (142) — (142) Reclassifications 2 (2) — Hedging, Discount, Premium and Other Activity — 17 17 Long-term Debt as of March 31, 2023 $ 11 $ 17,911 $ 17,922 |
Schedule of Interest Rate Derivatives | The amounts recorded in long-term debt on the consolidated balance sheet related to these fair value hedges is summarized in the table below. (Dollars in millions) March 31, 2023 December 31, 2022 Notional Value of Hedged Notes $ 800 $ 800 Cumulative Fair Value Adjustment to Hedged Notes (103) (118) Carrying Amount of Hedged Notes $ 697 $ 682 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: First Quarters (Dollars in millions) 2023 2022 Chemicals $ 650 $ 618 Agricultural and Food Products 437 387 Automotive 274 227 Forest Products 261 228 Metals and Equipment 239 197 Minerals 173 144 Fertilizers 129 120 Total Merchandise 2,163 1,921 Coal 633 533 Intermodal 499 527 Trucking 233 230 Other 178 202 Total $ 3,706 $ 3,413 |
Schedule of Accounts Receivable, Net | (Dollars in millions) March 31, December 31, Freight Receivables $ 1,056 $ 1,067 Freight Allowance for Credit Losses (17) (16) Freight Receivables, net 1,039 1,051 Non-Freight Receivables 356 279 Non-Freight Allowance for Credit Losses (18) (17) Non-Freight Receivables, net 338 262 Total Accounts Receivable, net $ 1,377 $ 1,313 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Investment Assets | The Company's investment assets are carried at fair value on the consolidated balance sheets as summarized in the following table. March 31, 2023 December 31, 2022 (Dollars in millions) Level 1 Level 2 Total Level 1 Level 2 Total Fixed Income Mutual Funds $ 77 $ — $ 77 $ 89 $ — $ 89 Corporate Bonds — 49 49 — 49 49 Time Deposits — 100 100 — — — Government Securities — 18 18 — 58 58 Total investments at fair value $ 77 $ 167 $ 244 $ 89 $ 107 $ 196 Total investments at amortized cost $ 247 $ 201 |
Schedule of Investment Maturities | These investments have the following maturities: (Dollars in millions) March 31, December 31, Less than 1 year $ 178 $ 129 1 - 5 years 24 24 5 - 10 years 9 10 Greater than 10 years 33 33 Total investments at fair value $ 244 $ 196 |
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) March 31, December 31, Long-term Debt (Including Current Maturities): Fair Value $ 16,592 $ 16,135 Carrying Value 17,922 18,047 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in AOCI balance by Component | Pension and Other Post-Employment Benefits Interest Rate Derivatives Other Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Balance December 31, 2022, Net of Tax $ (497) $ 150 $ (41) $ (388) Other Comprehensive Income (Loss) Income Before Reclassifications — (3) — (3) Amounts Reclassified to Net Earnings 4 — 2 6 Tax (Expense)/Benefit (1) — — (1) Total Other Comprehensive Income 3 (3) 2 2 Balance March 31, 2023, Net of Tax $ (494) $ 147 $ (39) $ (386) |
Nature of Operations and Sign_3
Nature of Operations and Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 21 Months Ended | ||
Mar. 31, 2023 USD ($) state mi | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 26, 2021 property phase | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Rail route network, distance | mi | 20,000 | |||
Number of states rail network serves | state | 26 | |||
Proceeds from sale of property, plant, and equipment | $ 8 | $ 8 | ||
Gain (loss) on disposition of property plant equipment | $ 8 | 27 | ||
Virginia Line Segments | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of property rights for sale | property | 3 | |||
Number of phases to complete property rights sale transaction | phase | 3 | |||
Proceeds from sale of property, plant, and equipment | $ 525 | |||
Gain (loss) on disposition of property plant equipment | $ 20 | $ 493 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net Earnings | $ 987 | $ 859 |
Denominator: | ||
Average Common Shares Outstanding (in shares) | 2,054 | 2,188 |
Other Potentially Dilutive Common Shares (in shares) | 4 | 5 |
Average Common Shares Outstanding, Assuming Dilution (in shares) | 2,058 | 2,193 |
Net Earnings Per Share, Basic (in dollars per share) | $ 0.48 | $ 0.39 |
Net Earnings Per Share, Assuming Dilution (in dollars per share) | $ 0.48 | $ 0.39 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Stock Options Excluded from Diluted EPS (in shares) | 4 | 1 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Billions | 3 Months Ended | |||
Feb. 14, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Jul. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Increase in quarterly dividend percentage | 10% | |||
Common stock dividends (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.10 | |
October 2020 program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Authorized share repurchase program amount | $ 5 | |||
Remaining share repurchase authority amount | $ 2.2 |
Earnings Per Share - Share Repu
Earnings Per Share - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Shares Repurchased (in shares) | 35 | 29 |
Cost of Shares | $ 1,067 | $ 1,016 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | $ 13 | $ 36 |
Income Tax Benefit | 4 | 9 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 4 | 6 |
Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 3 | 20 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 3 | 7 |
Stock Awards for Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | 2 | 2 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Share-Based Compensation Expense | $ 1 | $ 1 |
Stock Plans and Share-Based C_4
Stock Plans and Share-Based Compensation - Awards Granted Under Long-Term Incentive Plan (Details) - Long-term Incentive Plans | Feb. 15, 2023 $ / shares shares |
Performance Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted (in shares) | shares | 680 |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 32.77 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted (in shares) | shares | 648 |
Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 31.67 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted (in shares) | shares | 1,067 |
Weighted average grant date fair value, options (in dollars per share) | $ / shares | $ 9.86 |
Stock Plans and Share-Based C_5
Stock Plans and Share-Based Compensation - Narrative (Details) - LTIP | 3 Months Ended |
Mar. 31, 2023 shares | |
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% |
Performance Units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Payout percentage range for participants | 0% |
Performance Units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Payout percentage range for participants | 200% |
Performance Units | Certain Executive Officers | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout subject to upward or downward adjustment (up to) | 0.25 |
Performance Units | Certain Executive Officers | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Payout percentage range for participants | 250% |
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 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Number of equivalent shares of CSX common stock per unit of award (in shares) | 1 |
Casualty, Environmental and O_3
Casualty, Environmental and Other Reserves - Schedule of Casualty, Environmental and Other Reserves (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Current | $ 151 | $ 144 |
Long-term | 287 | 292 |
Total | 438 | 436 |
Total Casualty | ||
Loss Contingencies [Line Items] | ||
Current | 50 | 50 |
Long-term | 143 | 144 |
Total | 193 | 194 |
Personal Injury | ||
Loss Contingencies [Line Items] | ||
Current | 40 | 40 |
Long-term | 87 | 86 |
Total | 127 | 126 |
Occupational | ||
Loss Contingencies [Line Items] | ||
Current | 10 | 10 |
Long-term | 56 | 58 |
Total | 66 | 68 |
Environmental | ||
Loss Contingencies [Line Items] | ||
Current | 53 | 53 |
Long-term | 109 | 108 |
Total | 162 | 161 |
Other | ||
Loss Contingencies [Line Items] | ||
Current | 48 | 41 |
Long-term | 35 | 40 |
Total | $ 83 | $ 81 |
Casualty, Environmental and O_4
Casualty, Environmental and Other Reserves - Narrative (Details) | 3 Months Ended | ||
Jun. 01, 2021 USD ($) | Mar. 31, 2023 USD ($) site claim | Dec. 31, 2022 USD ($) | |
All Contingencies Reserves [Line Items] | |||
Total reserves | $ 438,000,000 | $ 436,000,000 | |
Casualty | |||
All Contingencies Reserves [Line Items] | |||
Total reserves | 193,000,000 | 194,000,000 | |
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 | $ 162,000,000 | 161,000,000 | |
Environmental impaired sites | site | 240 | ||
Other | |||
All Contingencies Reserves [Line Items] | |||
Total reserves | $ 83,000,000 | $ 81,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | |||
Jun. 01, 2021 USD ($) | Jun. 30, 2018 defendant | Mar. 31, 2016 party mi | May 31, 2007 entity claim | Mar. 31, 2023 USD ($) mi | |
Loss Contingencies [Line Items] | |||||
Casualty and catastrophic property deductible | $ 100,000,000 | ||||
Casualty and non catastrophic property deductible | $ 75,000,000 | ||||
Environmental | |||||
Loss Contingencies [Line Items] | |||||
Number of miles subject to remediation | mi | 8 | ||||
Number of parties participating in allocation process under study | party | 80 | ||||
Number of parties | defendant | 110 | ||||
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 | ||||
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 | 22,000,000 | ||||
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) | Mar. 31, 2023 USD ($) |
Retirement Benefits [Abstract] | |
Expected contributions to the Company's qualified pension plans in 2022 | $ 0 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - Pension Benefits Cost - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Components of expense/ (income) related to net benefit expense: | ||
Service Cost Included in Labor and Fringe | $ 6 | $ 8 |
Interest Cost | 28 | 16 |
Expected Return on Plan Assets | (41) | (47) |
Amortization of Net Loss | 7 | 12 |
Total Included in Other Income - Net | (6) | (19) |
Net Periodic Benefit Credit | $ 0 | $ (11) |
Debt and Credit Agreements - Ac
Debt and Credit Agreements - Activity Related to Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement, Debt Instruments [Roll Forward] | ||
Long-term Debt as of December 31, 2021, Current Portion | $ 151 | |
Long-term Debt as of December 31, 2021, Long-term Portion | 17,896 | |
Long-term Debt as of December 31, 2021, Total | 18,047 | |
Long-term Debt Repaid | (142) | $ (6) |
Reclassifications | 0 | |
Hedging, Discount, Premium and Other Activity | 17 | |
Long-term Debt as of June 30, 2022, Current Portion | 11 | |
Long-term Debt as of June 30, 2022, Long-term Portion | 17,911 | |
Long-term Debt as of June 30, 2022, Total | 17,922 | |
Current Portion | ||
Movement, Debt Instruments [Roll Forward] | ||
Long-term Debt as of December 31, 2021, Current Portion | 151 | |
Long-term Debt Repaid | (142) | |
Reclassifications | 2 | |
Hedging, Discount, Premium and Other Activity | 0 | |
Long-term Debt as of June 30, 2022, Current Portion | 11 | |
Long-term Portion | ||
Movement, Debt Instruments [Roll Forward] | ||
Long-term Debt as of December 31, 2021, Long-term Portion | 17,896 | |
Long-term Debt Repaid | 0 | |
Reclassifications | (2) | |
Hedging, Discount, Premium and Other Activity | 17 | |
Long-term Debt as of June 30, 2022, Long-term Portion | $ 17,911 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) | 3 Months Ended | ||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) swap | Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Commercial Paper | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity of credit facility | $ 1,000,000,000 | ||||
Borrowings outstanding | 0 | ||||
Fixed Rate Notes Due Between 2036 and 2040 | |||||
Line of Credit Facility | |||||
Debt issued | 800,000,000 | $ 800,000,000 | $ 800,000,000 | ||
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 | ||||
Fixed-to-Floating Interest Rate Swap | Fair Value Hedging | |||||
Line of Credit Facility | |||||
Derivative, number of fair value hedges | swap | 5 | ||||
Derivative, term of contract (in years) | 10 years | ||||
Designated as Hedging Instrument | Fixed-to-Floating Interest Rate Swap | Fair Value Hedging | |||||
Line of Credit Facility | |||||
Fair value hedge derivative instrument liabilities at fair value | 103,000,000 | 118,000,000 | |||
Designated as Hedging Instrument | Forward Starting Interest Rate Swap | Cash Flow Hedge | |||||
Line of Credit Facility | |||||
Cash flow hedge derivative instrument assets at fair value | 124,000,000 | $ 127,000,000 | |||
Unrealized gains (losses) recorded net of tax in other comprehensive income related to hedge | $ (3,000,000) | $ 21,000,000 | |||
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedge | |||||
Line of Credit Facility | |||||
Aggregate notional value of interest forward interest rate swap | $ 340,000,000 |
Debt and Credit Agreements - Sc
Debt and Credit Agreements - Schedule of Interest Rate Derivatives (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Fixed-to-Floating Interest Rate Swap | Fair Value Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Cumulative Fair Value Adjustment to Hedged Notes | $ (103,000,000) | $ (118,000,000) | |
Carrying Amount of Hedged Notes | 697,000,000 | 682,000,000 | |
Fixed Rate Notes Due Between 2036 and 2040 | |||
Derivative [Line Items] | |||
Notional Value of Hedged Notes | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Lines of Business (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,706 | $ 3,413 |
Total Merchandise | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,163 | 1,921 |
Chemicals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 650 | 618 |
Agricultural and Food Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 437 | 387 |
Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 274 | 227 |
Forest Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 261 | 228 |
Metals and Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 239 | 197 |
Minerals | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 173 | 144 |
Fertilizers | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 129 | 120 |
Coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 633 | 533 |
Intermodal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 499 | 527 |
Trucking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 233 | 230 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 178 | $ 202 |
Revenues - Accounts Receivable,
Revenues - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accounts Receivable, net | $ 1,377 | $ 1,313 |
Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, gross | 1,056 | 1,067 |
Allowance for Credit Losses | (17) | (16) |
Total Accounts Receivable, net | 1,039 | 1,051 |
Non-Freight Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, gross | 356 | 279 |
Allowance for Credit Losses | (18) | (17) |
Total Accounts Receivable, net | $ 338 | $ 262 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Accounts receivable | $ 1,377 | $ 1,313 |
Non-Freight Receivables, Insurance Recovery | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Accounts receivable | $ 42 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Investment Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | $ 244 | $ 196 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at amortized cost | 247 | 201 |
Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 77 | 89 |
Level 1 | Fair Value | Fixed Income Mutual Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 77 | 89 |
Level 1 | Fair Value | Corporate Bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 0 | 0 |
Level 1 | Fair Value | Time Deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 0 | 0 |
Level 1 | Fair Value | Government Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 0 | 0 |
Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 167 | 107 |
Level 2 | Fair Value | Fixed Income Mutual Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 0 | 0 |
Level 2 | Fair Value | Corporate Bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 49 | 49 |
Level 2 | Fair Value | Time Deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 100 | 0 |
Level 2 | Fair Value | Government Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 18 | 58 |
Total | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 244 | 196 |
Total | Fair Value | Fixed Income Mutual Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 77 | 89 |
Total | Fair Value | Corporate Bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 49 | 49 |
Total | Fair Value | Time Deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | 100 | 0 |
Total | Fair Value | Government Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | $ 18 | $ 58 |
Fair Value Measurements - Inves
Fair Value Measurements - Investment Maturities (Details) - Fair Value - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Less than 1 year | $ 178 | $ 129 |
1 - 5 years | 24 | 24 |
5 - 10 years | 9 | 10 |
Greater than 10 years | 33 | 33 |
Total investments at fair value | $ 244 | $ 196 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value and Carrying Value of Long-Term Debt (Details) - Level 2 - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt (including current maturities) | $ 16,592 | $ 16,135 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt (including current maturities) | $ 17,922 | $ 18,047 |
Fair Value Measurements - Inter
Fair Value Measurements - Interest Rate Derivatives (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fixed-to-Floating Interest Rate Swap | Fair Value Hedging | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liability value of fixed-to-floating interest rate swap | $ 103 | $ 118 |
Forward Starting Interest Rate Swap | Cash Flow Hedge | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash flow hedge derivative instrument assets at fair value | $ 124 | $ 127 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Total comprehensive earnings, net of tax | $ 989 | $ 890 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Changes in AOCI Balance by Component (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Other Comprehensive Income (Loss) | |||
Income Before Reclassifications | $ (3) | ||
Amounts Reclassified to Net Earnings | 6 | ||
Tax (Expense)/Benefit | (1) | ||
Total Other Comprehensive Income | 2 | $ 31 | |
Pension and Other Post-Employment Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance December 31, 2022, Net of Tax | (497) | ||
Other Comprehensive Income (Loss) | |||
Income Before Reclassifications | 0 | ||
Amounts Reclassified to Net Earnings | 4 | ||
Tax (Expense)/Benefit | (1) | ||
Total Other Comprehensive Income | 3 | ||
Balance March 31, 2023, Net of Tax | (494) | ||
Interest Rate Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance December 31, 2022, Net of Tax | 150 | ||
Other Comprehensive Income (Loss) | |||
Income Before Reclassifications | (3) | ||
Amounts Reclassified to Net Earnings | 0 | ||
Tax (Expense)/Benefit | 0 | ||
Total Other Comprehensive Income | (3) | ||
Balance March 31, 2023, Net of Tax | 147 | ||
Other | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance December 31, 2022, Net of Tax | (41) | ||
Other Comprehensive Income (Loss) | |||
Income Before Reclassifications | 0 | ||
Amounts Reclassified to Net Earnings | 2 | ||
Tax (Expense)/Benefit | 0 | ||
Total Other Comprehensive Income | 2 | ||
Balance March 31, 2023, Net of Tax | (39) | ||
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance December 31, 2022, Net of Tax | (388) | ||
Other Comprehensive Income (Loss) | |||
Total Other Comprehensive Income | [1] | 2 | $ 31 |
Balance March 31, 2023, Net of Tax | $ (386) | ||
[1]Accumulated Other Comprehensive Loss balances shown above are net of tax. The associated taxes were $121 million and $99 million as of March 31, 2023, and March 31, 2022, respectively. For additional information, see Note 10, Other Comprehensive Income. |