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CSX Corporation

CSX CorporationCSXEarnings & Financial Report

Nasdaq · Industrials · Rail Transportation

CSX Transportation, known colloquially as simply CSX, is a Class I freight railroad company operating in the Eastern United States and the Canadian provinces of Ontario and Quebec. Operating about 21,000 route miles (34,000 km) of track, it is the leading subsidiary of CSX Corporation, a Fortune 500 company headquartered in Jacksonville, Florida.

What changed in CSX Corporation's 10-K — 2023 vs 2024

Top changes in CSX Corporation's 2024 10-K

650 paragraphs added · 211 removed · 185 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Other revenue accounted for 4% of the Company’s total revenue in 2023. This category includes revenue from regional subsidiary railroads and incidental charges, including intermodal storage and equipment usage, demurrage and switching. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate.
Other revenue accounted for 4% of the Company’s total revenue in 2024. This category includes revenue from regional subsidiary railroads and incidental charges, including intermodal storage and equipment usage, demurrage and switching. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate.
CSX 2023 Form 10-K p.5 CSX CORPORATION PART I Regulatory Environment The Company's operations are subject to various federal, state, provincial (Canada) and local laws and regulations generally applicable to businesses operating in the United States and Canada.
CSX 2024 Form 10-K p.5 CSX CORPORATION PART I Regulatory Environment The Company's operations are subject to various federal, state, provincial (Canada) and local laws and regulations generally applicable to businesses operating in the United States and Canada.
For additional information concerning business conducted by the Company during 2023, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. CSX 2023 Form 10-K p.6 CSX CORPORATION PART I
For additional information concerning business conducted by the Company during 2024, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. CSX 2024 Form 10-K p.6 CSX CORPORATION PART I
In 2023, CSX was recognized as a “Best Place to Work for Disability Inclusion” by Disability:IN and the American Association of People with Disabilities for a fifth consecutive year after receiving a top score on their disability equality index.
In 2024, CSX was recognized as a “Best Place to Work for Disability Inclusion” by Disability:IN and the American Association of People with Disabilities for a sixth consecutive year after receiving a top score on their disability equality index.
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.
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.
Through a network of approximately 30 terminals, the intermodal business serves all major markets east of the Mississippi River and transports mainly manufactured consumer goods in containers, providing customers with truck-like service for longer shipments. • The coal business shipped 755 thousand carloads (12% of volume) and generated $2.5 billion in revenue (17% of revenue) in 2023.
Through a network of approximately 30 terminals, the intermodal business serves all major markets east of the Mississippi River and transports mainly manufactured consumer goods in containers, providing customers with truck-like service for longer shipments. • The coal business shipped 736 thousand carloads (12% of volume) and generated $2.2 billion in revenue (15% of revenue) in 2024.
For further details, refer to Note 17, Business Combinations. CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States, and also provides drayage services (the pickup and delivery of intermodal shipments) for certain customers. TDSI serves the automotive industry with distribution centers and storage locations.
CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States, and also provides drayage services (the pickup and delivery of intermodal shipments) for certain customers. TDSI serves the automotive industry with distribution centers and storage locations.
The Company’s merchandise business is comprised of shipments in the following diverse markets: chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers. • The intermodal business shipped 2.8 million units (45% of volume) and generated $2.1 billion in revenue (14% of revenue) in 2023.
The Company’s merchandise business is comprised of shipments in the following diverse markets: chemicals, agricultural and food products, automotive, minerals, forest products, metals and equipment, and fertilizers. • The intermodal business shipped 2.9 million units (46% of volume) and generated $2.0 billion in revenue (14% of revenue) in 2024.
CSX 2023 Form 10-K p.3 CSX CORPORATION PART I Lines of Business During 2023, the Company's services generated $14.7 billion of revenue and served four primary lines of business: merchandise, intermodal, coal and trucking. • The merchandise business shipped 2.6 million carloads (43% of volume) and generated $8.7 billion in revenue (59% of revenue) in 2023.
CSX 2024 Form 10-K p.3 CSX CORPORATION PART I Lines of Business During 2024, the Company's services generated $14.5 billion of revenue and served four primary lines of business: merchandise, intermodal, coal and trucking. • The merchandise business shipped 2.6 million carloads (42% of volume) and generated $8.9 billion in revenue (61% of revenue) in 2024.
Most of the export coal the Company transports is used for steelmaking, while the majority of domestic coal the Company ships is used for electricity generation. • The trucking business generated $882 million, or 6%, of revenue in 2023. Trucking revenue includes revenue from the operations of Quality Carriers, which was acquired by CSX effective July 1, 2021.
Most of the export coal the Company transports is used for steelmaking, while the majority of domestic coal the Company ships is used for electricity generation. • The trucking business generated $844 million, or 6%, of revenue in 2024. Trucking revenue includes revenue from the operations of Quality Carriers.
CSX's Committed Workforce Most of the Company’s employees provide or support transportation services. The Company had more than 23,000 employees as of December 2023, which includes approximately 17,700 employees that are members of a rail labor union.
CSX's Committed Workforce Most of the Company’s employees provide or support transportation services. The Company had more than 23,500 employees as of December 2024, which includes approximately 17,500 employees that are members of a rail labor union. There are 12 rail unions at CSX that participate in national bargaining.
As of December 2, 2022, all 12 rail unions at CSX that participated in national bargaining were covered by national agreements with the Class I railroads and CSX-specific agreements that will remain in effect through December 31, 2024.
As of December 2, 2022, all of these rail unions were covered by national agreements with the Class I railroads and CSX-specific agreements that remained in effect through December 31, 2024. Collective agreements under the Railway Labor Act do not expire, but continue until amended.
As of December 31, 2023, approximately 23% of CSX's overall workforce and 37% of management was diverse, calculated as the percentage of males of color and all females.
The Company is committed to developing a culture that promotes workforce diversity and inclusion and encourages ethical behavior. As of December 31, 2024, approximately 22% of CSX's overall workforce and 35% of management was diverse, calculated as the percentage of males of color and all females.
CSX 2023 Form 10-K p.4 CSX CORPORATION PART I The Compensation and Talent Management Committee of the Board of Directors is charged with oversight of CSX's workforce. The Company is committed to developing a culture that promotes workforce diversity and inclusion and encourages ethical behavior.
The FRA Personal Injury Frequency Index, a measure of the number of FRA-reportable injuries per 200,000 man-hours, was 1.19 in 2024 and 0.94 in 2023. CSX 2024 Form 10-K p.4 CSX CORPORATION PART I The Compensation and Talent Management Committee of the Board of Directors is charged with oversight of CSX's workforce.
Collective agreements under the Railway Labor Act do not expire, but continue until amended, and formal notices to amend these agreements may be served as early as November 1, 2024. CSX prioritizes workplace safety for employees and is committed to continued improvement through enhanced processes, training, technology, communication, and continuous collaboration with customers and peers across the railroad industry.
CSX prioritizes workplace safety for employees and is committed to continued improvement through enhanced processes, training, technology, communication, and continuous collaboration with customers and peers across the railroad industry. Training programs and processes are focused on injury and accident prevention as well as emergency preparedness. Additionally, the attainment of key safety targets is a component of management's annual incentive program.
Removed
Training programs and processes are focused on injury and accident prevention as well as emergency preparedness. The attainment of key safety targets is a component of management's annual incentive program. The FRA Personal Injury Frequency Index, a measure of the number of FRA-reportable injuries per 200,000 man-hours, was 0.89 in 2023 and 1.01 in 2022, improving year over year.
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Prior to the 2022 agreements becoming amendable, CSX worked with several major rail unions on new five-year labor agreements. As of the date of this filing, new labor agreements have been fully ratified by seven unions representing approximately 40% of the Company's unionized workforce.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Marketplace conditions for resources like locomotives as well as the availability of qualified personnel, including engineers and conductors as well as other skilled professional or technical employees, could each have a negative impact on the Company’s ability to meet demand for rail service.
Marketplace conditions for resources like locomotives and the availability of qualified personnel, including engineers and conductors as well as other skilled professional or technical employees, could each have a negative impact on the Company’s ability to meet demand for rail service.
This insurance may not be sufficient to cover all of the Company's damages or damages to others, and this insurance may not continue to be available at commercially reasonable rates. Even with insurance, if any natural occurrence leads to a catastrophic interruption of service, the Company may not be able to restore service without a significant interruption in operations.
This insurance may not be sufficient to cover all of the Company's damages or damages to others, and this insurance may not continue to be available at commercially reasonable rates. Even with insurance, if any natural occurrence leads to a catastrophic interruption of service, the Company may not be able to restore service without a significant interruption to operations.
In addition, the performance of locomotives and railcars could be adversely affected by extreme weather conditions. Hurricanes as well as storm and flooding events have impacted the Company's network in the past, leading to interrupted service and damage to track and equipment.
In addition, the performance of locomotives and railcars could be adversely affected by extreme weather conditions. Hurricanes as well as storm and flooding events have impacted the Company's network in the past, leading to interrupted service and damage to track structure and equipment.
In addition, CSX may become subject to legal requirements to disclose climate change related information and may become subject to demands or expectations by its supply chain partners, customers or other stakeholders to disclose information relating to climate risk or set related targets or goals.
In addition, CSX may become subject to legal requirements to disclose climate-related information and may become subject to demands or expectations by its supply chain partners, customers or other stakeholders to disclose information relating to climate risk or set related targets or goals.
CSXT could experience rail network difficulties related to: (i) locomotive or crew shortages; (ii) labor shortages or other service disruptions in the supply chain affecting trucking, ports, handling facilities, customer facilities or other railroads; (iii) unpredictable increases in demand; (iv) extreme weather conditions; (v) regulatory changes resulting in forced access or impacting where and how fast CSXT can transport freight or maintain routes; (vi) reductions in availability of pooled equipment, including chassis; (vii) impacts from changes in network capacity or structure; or (viii) increased passenger activities, which could impact CSXT's operational fluidity, leading to deterioration of service, asset utilization and overall efficiency.
CSXT has experienced, and in the future could experience, rail network difficulties related to: (i) locomotive or crew shortages; (ii) labor shortages or other service disruptions in the supply chain affecting trucking, ports, handling facilities, customer facilities or other railroads; (iii) unpredictable increases in demand; (iv) extreme weather conditions; (v) regulatory changes resulting in forced access or impacting where and how fast CSXT can transport freight or maintain routes; (vi) reductions in availability of pooled equipment, including chassis; (vii) impacts from changes in network capacity or structure; or (viii) increased passenger activities, which could impact CSXT's operational fluidity, leading to deterioration of service, asset utilization and overall efficiency.
CSX 2023 Form 10-K p.9 CSX CORPORATION PART I Future acts of terrorism, war or regulatory changes to combat the risk of terrorism may cause significant disruptions in the Company's operations. Terrorist attacks, along with any government response to those attacks, may adversely affect the Company's financial condition, results of operations or liquidity.
CSX 2024 Form 10-K p.9 CSX CORPORATION PART I Future acts of terrorism, war or regulatory changes to combat the risk of terrorism may cause significant disruptions in the Company's operations. Terrorist attacks, along with any government response to those attacks, may adversely affect the Company's financial condition, results of operations or liquidity.
CSX 2023 Form 10-K p.11 CSX CORPORATION PART I Disruption to a key railroad industry supplier could negatively affect operating efficiency and increase costs. The capital intensive and unique nature of core rail equipment (including rail, ties, freight cars and locomotives) limits the number of railroad equipment suppliers.
CSX 2024 Form 10-K p.11 CSX CORPORATION PART I Disruption to a key railroad industry supplier could negatively affect operating efficiency and increase costs. The capital intensive and unique nature of core rail equipment (including rail, ties, freight cars and locomotives) limits the number of railroad equipment suppliers.
CSX 2023 Form 10-K p.8 CSX CORPORATION PART I The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents.
CSX 2024 Form 10-K p.8 CSX CORPORATION PART I The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents.
Climate change and other emissions-related laws and regulations have been proposed and, in some cases adopted, on the federal, state, provincial and local levels. These final and proposed laws and regulations take the form of restrictions, caps, taxes or other controls on emissions as well as requirements to disclose information relating to climate change.
Climate and emissions-related laws and regulations have been proposed and, in some cases adopted, on the federal, state, provincial and local levels. These final and proposed laws and regulations take the form of restrictions, caps, taxes or other controls on emissions as well as requirements to disclose climate-related information.
Additionally, any future consolidation in the rail industry could materially affect the regulatory and competitive environment in which the Company operates. CSX 2023 Form 10-K p.10 CSX CORPORATION PART I Global economic conditions could negatively affect demand for commodities and other freight.
Additionally, any future consolidation in the rail industry could materially affect the regulatory and competitive environment in which the Company operates. CSX 2024 Form 10-K p.10 CSX CORPORATION PART I Global economic conditions could negatively affect demand for commodities and other freight.
Changes in weather patterns caused by climate change are expected to increase the frequency, severity or duration of certain adverse weather conditions. Insurance maintained by the Company to protect against loss of business and other related consequences resulting from these natural occurrences is subject to coverage limitations, depending on the nature of the risk insured.
Changes in weather patterns are expected to increase the frequency, severity or duration of certain adverse weather conditions. Insurance maintained by the Company to protect against loss of business and other related consequences resulting from these natural occurrences is subject to coverage limitations, depending on the nature of the risk insured.
CSX 2023 Form 10-K p.7 CSX CORPORATION PART I The Company may be subject to various claims and lawsuits that could result in significant expenditures.
CSX 2024 Form 10-K p.7 CSX CORPORATION PART I The Company may be subject to various claims and lawsuits that could result in significant expenditures.
CSX 2023 Form 10-K p.12 CSX CORPORATION PART I The Company is subject to environmental laws and regulations that may result in significant costs.
CSX 2024 Form 10-K p.12 CSX CORPORATION PART I The Company is subject to environmental laws and regulations that may result in significant costs.
Additionally, if CSX is unable to successfully acquire, develop or implement new technology, including artificial intelligence, it may suffer a competitive disadvantage within the rail industry and with companies providing other modes of transportation services. Network or supply chain constraints could have a negative impact on service, operating efficiency or volume of shipments.
Additionally, if CSX is unable to successfully acquire, develop, implement, or update new or existing technology, including artificial intelligence, it may suffer adverse financial impacts or a competitive disadvantage within the rail industry and with companies providing other modes of transportation services. Network or supply chain constraints could have a negative impact on service, operating efficiency or volume of shipments.
Operational, Safety and Business Disruption An epidemic or pandemic and the initiatives to reduce its transmission could adversely affect the Company's business. The Company could be materially and adversely affected by a public health crisis, including a widespread epidemic or pandemic.
Operational, Safety and Business Disruption An epidemic or pandemic and the initiatives to reduce its transmission could adversely affect the Company's business. The Company has been and could in the future be materially and adversely affected by a public health crisis, including a widespread epidemic or pandemic.
If the Company violates or fails to comply with these laws and regulations, CSX could be fined or otherwise sanctioned by regulators. The Company can also be held liable for consequences arising out of human exposure to any hazardous substances for which CSX is responsible.
If the Company violates or fails to comply with these laws and regulations, CSX could be fined or otherwise sanctioned by regulators. The Company can also be held liable for consequences arising out of human exposure to any hazardous or otherwise harmful substances that CSX is transporting or storing.
In particular, the EPA has issued various regulations and may issue additional regulations targeting emissions, including rules and standards governing emissions from certain stationary sources and from vehicles.
In particular, the EPA has issued various regulations and may issue additional regulations targeting emission reductions, including rules and standards governing emissions from certain stationary and mobile sources.
Climate Change and Environmental The Company’s operations and financial results could be negatively impacted by climate change and regulatory and legislative responses to climate change. There is potential for operational impacts from changing weather patterns or rising sea levels in the Company's operational territory, which could impact the Company's network or other assets.
Climate and Environmental The Company’s operations and financial results could be negatively impacted by climate or weather-related risks as well as regulatory and legislative responses. There is potential for operational impacts from climate-related risks, including changing weather patterns, in the Company's operational territory, which could impact the Company's network or other assets.
Government regulation and compliance risks may adversely affect the Company's operations and financial results. The Company is subject to the jurisdiction of various regulatory agencies, including the STB, FRA, PHMSA, TSA, EPA and other state, provincial, local and federal regulatory agencies for a variety of economic, health, safety, labor, environmental, tax, legal, cybersecurity and other matters.
The Company is subject to the jurisdiction of various regulatory agencies, including the STB, FRA, PHMSA, TSA, EPA and other state, provincial, local and federal regulatory agencies for a variety of economic, health, safety, labor, environmental, tax, legal, cybersecurity and other matters.
Additionally, embargoes or changes to trade agreements or policies could result in reduced import and export volumes due to increased tariffs and lower consumer demand.
Additionally, embargoes or changes to trade agreements or policies, such as tariffs, could result in reduced import and export volumes.
Complying with these or future regulations could continue to increase the Company's operating costs and reduce operating efficiencies. Severe weather or other natural occurrences could result in significant business interruptions and expenditures in excess of available insurance coverage.
For example, the Department of Homeland Security adopted regulations that require freight railroads to implement additional security protocols when transporting hazardous materials. Complying with these or future regulations could continue to increase the Company's operating costs and reduce operating efficiencies. Severe weather or other natural occurrences could result in significant business interruptions and expenditures in excess of available insurance coverage.
Legislation passed by Congress, new regulations issued by federal agencies, or executive orders issued by the President of the United States could significantly affect the revenues, costs, including income taxes, and profitability of the Company's business. In addition, statutes or regulations that, among other things, impose price constraints or affecting rail-to-rail competition could adversely affect the Company's profitability.
Legislation passed by Congress or state or local assemblies; new regulations issued by federal, state or local agencies; executive orders issued by the President of the United States or governors; or other governmental actions could significantly affect the revenues, costs (including income taxes), and profitability of the Company's business.
In addition, premiums charged for some or all of the insurance coverage currently maintained by the Company could increase dramatically, or the coverage may no longer be available.
In addition, premiums charged for some or all of the insurance coverage currently maintained by the Company could increase dramatically, or the coverage may no longer be available. Federal, state and local governmental bodies have adopted legislation and regulations relating to security issues that impact the transportation industry.
Removed
Furthermore, in response to the heightened risk of terrorism, federal, state and local governmental bodies are proposing and, in some cases, have adopted legislation and regulations relating to security issues that impact the transportation industry. For example, the Department of Homeland Security adopted regulations that require freight railroads to implement additional security protocols when transporting hazardous materials.
Added
In addition, statutes, regulations, orders or other governmental actions that, among other things, impose price constraints, restrict access to government funding, or affecting rail-to-rail competition could adversely affect the Company's profitability. Government regulation and compliance risks may adversely affect the Company's operations and financial results.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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CSX 2023 Form 10-K p.14 CSX CORPORATION PART I The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents as discussed in more detail in Item 1A. Risk Factors .
CSX 2024 Form 10-K p.14 CSX CORPORATION PART I The Company, its third-party vendors and other companies in the rail and transportation industries have been subject to, and are likely to continue to be the target of, data breaches, cyber-attacks and other similar incidents as discussed in more detail in Item 1A. Risk Factors .
The Audit Committee is apprised annually on emerging risks to the Company, including education on cybersecurity-related matters as needed. CSX has a cybersecurity expert on the Board and its Audit Committee to provide expanded oversight of the Company’s cybersecurity and technology systems. CSX 2023 Form 10-K p.15 CSX CORPORATION PART I
The Audit Committee is apprised annually on emerging risks to the Company, including education on cybersecurity-related matters as needed. CSX has a cybersecurity expert on the Board and its Audit Committee to provide expanded oversight of the Company’s cybersecurity and technology systems. CSX 2024 Form 10-K p.15 CSX CORPORATION PART I
The SOC, with the assistance of outside third-parties as needed, analyzes, evaluates and remediates cybersecurity incidents and provides investigative information to the CISO.
The CISO is notified of cybersecurity events as needed based on the Company’s processes for addressing cybersecurity incidents and threats. The SOC, with the assistance of outside third-parties as needed, analyzes, evaluates and remediates cybersecurity incidents and provides investigative information to the CISO.
The CISO is notified of cybersecurity events as needed based on the Company’s processes for addressing cybersecurity incidents and threats. The CISO is supported by a team that includes the SOC, which consists of the Deputy Chief Information Security Officer and other cybersecurity professionals as well as a team of third-party contractors.
The CISO is supported by a team that includes the SOC, which consists of the Deputy Chief Information Security Officer ("Deputy CISO") and other cybersecurity professionals as well as a team of third-party contractors. The Deputy CISO has over 20 years of industry experience including federal cyber law enforcement.

Item 2. Properties

Properties — owned and leased real estate

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CSX 2023 Form 10-K p.19 CSX CORPORATION PART I The Company’s revenue-generating equipment, either owned or long-term leased, primarily consists of freight cars and containers as described below. Gondolas – Support CSXT’s metals markets and provide transport for woodchips and other bulk commodities. Some gondolas are equipped with special hoods for protecting products like coil and sheet steel.
CSX 2024 Form 10-K p.19 CSX CORPORATION PART I The Company’s revenue-generating equipment, either owned or long-term leased, primarily consists of freight cars and containers as described below. Gondolas – Support CSXT’s metals markets and provide transport for woodchips and other bulk commodities. Some gondolas are equipped with special hoods for protecting products like coil and sheet steel.
These serve as points of connectivity between the Company and its local customers and as sorting facilities where railcars and intermodal containers are received, classed for destination and placed onto outbound trains, or arrive and are delivered to the customer. The Company’s largest yards and terminals based on 2023 volume (number of railcars or intermodal containers processed) are listed below.
These serve as points of connectivity between the Company and its local customers and as sorting facilities where railcars and intermodal containers are received, classed for destination and placed onto outbound trains, or arrive and are delivered to the customer. The Company’s largest yards and terminals based on 2024 volume (number of railcars or intermodal containers processed) are listed below.
CSX 2023 Form 10-K p.17 CSX CORPORATION PART I CSX Rail Network CSX 2023 Form 10-K p.18 CSX CORPORATION PART I Locomotives As of December 2023, CSXT owns or long-term leases more than 3,500 locomotives. From time to time, the Company also short-term leases locomotives based on business needs.
CSX 2024 Form 10-K p.17 CSX CORPORATION PART I CSX Rail Network CSX 2024 Form 10-K p.18 CSX CORPORATION PART I Locomotives As of December 2024, CSXT owns or long-term leases more than 3,500 locomotives. From time to time, the Company also short-term leases locomotives based on business needs.
Freight locomotives are used primarily to pull trains while switching locomotives are used in yards. Auxiliary units are typically used to provide extra traction for heavy trains in hilly terrain. Of owned locomotives, approximately 68% were in active service as of December 31, 2023, and the remainder were in storage to be utilized as needed.
Freight locomotives are used primarily to pull trains while switching locomotives are used in yards. Auxiliary units are typically used to provide extra traction for heavy trains in hilly terrain. Of owned locomotives, approximately 67% were in active service as of December 31, 2024, and the remainder were in storage to be utilized as needed.
Of total owned and long-term leased equipment, approximately 89% was in active service as of December 31, 2023, and the remainder were in storage to be utilized as needed.
Of total owned and long-term leased equipment, approximately 90% was in active service as of December 31, 2024, and the remainder were in storage to be utilized as needed.
As of December 2023, CSXT’s fleet of owned or long-term leased locomotives consisted of the following types: Locomotives % Average Age (in Years) Freight 3,160 89 % 23 Switching 234 6 % 46 Auxiliary Units 175 5 % 30 Total Locomotives 3,569 100 % 25 Equipment The Company owns or long-term leases rail equipment, including several types of freight cars and intermodal containers.
As of December 2024, CSXT’s fleet of owned or long-term leased locomotives consisted of the following types: Locomotives % Average Age (in Years) Freight 3,129 89 % 23 Switching 210 6 % 47 Auxiliary Units 175 5 % 31 Total Locomotives 3,514 100 % 25 Equipment The Company owns or long-term leases rail equipment, including several types of freight cars and intermodal containers.
At December 2023, the breakdown of track miles was as follows: Track Miles Single Mainline Track 19,671 Other Mainline Track 5,652 Terminals and Switching Yards 9,270 Passing Sidings and Turnouts 896 Total 35,489 In addition to its physical track structure, the Company operates numerous yards and terminals for rail and intermodal service.
At December 2024, the breakdown of track miles was as follows: Track Miles Single Mainline Track 19,773 Other Mainline Track 5,649 Terminals and Switching Yards 9,227 Passing Sidings and Turnouts 890 Total 35,539 In addition to its physical track structure, the Company operates numerous yards and terminals for rail and intermodal service.
As of December 2023, the Company’s owned and long-term leased equipment consisted of the following: Equipment Number of Units % Gondolas 18,978 41 % Multi-level Flat Cars 11,095 24 % Open-top Hoppers 6,215 13 % Covered Hoppers 6,088 13 % Box Cars 3,059 7 % Flat Cars 575 1 % Other Cars 586 1 % Subtotal Freight Cars 46,596 100 % Containers 19,230 Total Equipment 65,826 At any time, approximately two-thirds of the railcars on the CSXT system are not owned or leased by the Company.
As of December 2024, the Company’s owned and long-term leased equipment consisted of the following: Equipment Number of Units % Gondolas 19,077 42 % Multi-level Flat Cars 11,036 24 % Open-top Hoppers 6,109 15 % Covered Hoppers 5,506 12 % Box Cars 2,318 5 % Flat Cars 565 1 % Other Cars 586 1 % Subtotal Freight Cars 45,197 100 % Containers 18,907 Total Equipment 64,104 At any time, approximately two-thirds of the railcars on the CSXT system are not owned or leased by the Company.
Yards and Terminals Annual Volume Waycross, GA 930,651 Bedford Park Intermodal Terminal (Chicago) 926,845 Nashville, TN 645,352 Cincinnati, OH 644,478 Selkirk, NY 625,308 Avon, IN (Indianapolis) 597,169 Walbridge, OH (Toledo) 378,869 Fairburn, GA Intermodal Terminal (Atlanta) 362,767 Louisville, KY 356,740 Chicago, IL 307,588 CSX 2023 Form 10-K p.16 CSX CORPORATION PART I Network Geography CSXT’s operations are primarily focused on four major transportation networks and corridors that are defined geographically and by commodity flows below.
Yards and Terminals Annual Volume Waycross, GA 915,159 Bedford Park Intermodal Terminal (Chicago) 899,537 Nashville, TN 687,659 Selkirk, NY 636,745 Cincinnati, OH 624,644 Avon, IN (Indianapolis) 617,602 Fairburn, GA Intermodal Terminal (Atlanta) 414,598 Walbridge, OH (Toledo) 355,190 Louisville, KY 341,513 Chicago, IL 298,178 CSX 2024 Form 10-K p.16 CSX CORPORATION PART I Network Geography CSXT’s operations are primarily focused on four major transportation networks and corridors that are defined geographically and by commodity flows below.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Other positions he held at Ford include President of Global Operations, President of the Americas, President of Asia Pacific and Africa, Chairman and CEO of Ford China, and Chairman & CEO of Ford Canada. Over the four years prior to joining CSX, Hinrichs also served in multiple advisory and board roles of various companies. Sean R.
Other positions he held at Ford include President of Global Operations, President of the Americas, President of Asia Pacific and Africa, Chairman and CEO of Ford China, and Chairman & CEO of Ford Canada. Over the four years prior to joining CSX, Mr. Hinrichs also served in multiple advisory and board roles of various companies. Sean R.
Cory is a seasoned railroad executive with approximately 40 years of operations experience, working at the Canadian National Railway Company ("CN") from 1981 to 2019. He served as Executive Vice President and Chief Operating Officer at CN.
Mr. Cory is a seasoned railroad executive with approximately 40 years of operations experience, working at the Canadian National Railway Company ("CN") from 1981 to 2019. He served as Executive Vice President and Chief Operating Officer at CN.
Hinrichs, 57 President and Chief Executive Officer Hinrichs, a leader with more than 30 years of experience in the global automotive, manufacturing, and energy sectors, was named President and Chief Executive Officer in September 2022. Hinrichs previously worked at Ford Motor Company from 2000 to 2020, most recently serving as President of Ford's global automotive business.
Hinrichs, a leader with more than 30 years of experience in the global automotive, manufacturing, and energy sectors, was named President and Chief Executive Officer in September 2022. Mr. Hinrichs previously worked at Ford Motor Company from 2000 to 2020, most recently serving as President of Ford's global automotive business.
Boone, 46 Executive Vice President and Chief Commercial Officer Boone has served as Executive Vice President and Chief Commercial Officer since June 2021. In his current role, he is responsible for developing and implementing the Company's commercial strategy and oversees functions including sales, marketing, customer solutions, real estate and industrial development. Mr.
Boone, 47 Executive Vice President and Chief Commercial Officer Mr. Boone has served as Executive Vice President and Chief Commercial Officer since June 2021. In his current role, he is responsible for developing and implementing the Company's commercial strategy and oversees functions including sales, marketing, customer solutions, real estate and industrial development. Mr.
In that role, he led the company’s automotive operations, overseeing Ford’s global business units and the Ford and Lincoln brands. He also led Ford’s automotive skill teams, overseeing product development, purchasing, manufacturing, labor affairs, marketing and sales, government affairs, information technology, sustainability, safety and environmental engineering.
In that role, he led the company’s automotive operations, overseeing Ford’s global business units and the Ford and Lincoln brands. Mr. Hinrichs also led Ford’s automotive skill teams, overseeing product development, purchasing, manufacturing, labor affairs, marketing and sales, government affairs, information technology, sustainability, safety and environmental engineering.
Item 4. Mine Safety Disclosure Not Applicable CSX 2023 Form 10-K p.20 CSX CORPORATION PART I Executive Officers of the Registrant Executive officers of the Company are elected by the CSX Board of Directors and generally hold office until the next annual election of officers.
Item 4. Mine Safety Disclosure Not Applicable CSX 2024 Form 10-K p.20 CSX CORPORATION PART I Executive Officers of the Registrant Executive officers of the Company are elected by the CSX Board of Directors and generally hold office until the next annual election of officers.
CSX 2023 Form 10-K p.21 CSX CORPORATION PART I Name and Age Business Experience During Past Five Years Michael A. Cory, 61 Executive Vice President and Chief Operating Officer Cory was named Executive Vice President and Chief Operating Officer in September 2023. In this role, he is responsible for transportation, network operations including terminals, mechanical, engineering and labor relations. Mr.
CSX 2024 Form 10-K p.21 CSX CORPORATION PART I Name and Age Business Experience During Past Five Years Michael A. Cory, 62 Executive Vice President and Chief Operating Officer Mr. Cory was named Executive Vice President and Chief Operating Officer in September 2023. In this role, he is responsible for transportation, network operations including terminals, mechanical, engineering and labor relations.
Cory's retirement from CN in 2019, he continued to provide transportation consulting services as well as serving as the President of Pacific National, Australia's largest private railroad, in 2021. Stephen Fortune, 54 Executive Vice President and Chief Digital and Technology Officer Fortune was named CSX's Executive Vice President and Chief Digital and Technology Officer in April 2022.
Cory's retirement from CN in 2019, he continued to provide transportation consulting services as well as serving as the President of Pacific National, Australia's largest private railroad, in 2021. Stephen Fortune, 55 Executive Vice President and Chief Digital and Technology Officer Mr. Fortune was named CSX's Executive Vice President and Chief Digital and Technology Officer in April 2022.
There are no family relationships or any arrangement or understanding between any officer and any other person pursuant to which such officer was elected. As of the date of this filing, the executive officers’ names, ages and business experience are: Name and Age Business Experience During Past Five Years Joseph R.
There are no family relationships or any arrangement or understanding between any officer and any other person pursuant to which such officer was elected. As of the date of this filing, the executive officers’ names, ages and business experience are: Name and Age Business Experience During Past Five Years Joseph R. Hinrichs, 58 President and Chief Executive Officer Mr.
Prior to this role, Pelkey held the role of Vice President Finance & Treasury since 2017. Prior to 2017, he has held the positions of AVP Capital Markets and Director Performance Analysis. During his 18 years with CSX, Mr. Pelkey has held a variety of other roles, including financial planning and technology finance. Kevin S.
Pelkey held the role of Vice President Finance & Treasury since 2017. Prior to 2017, he has held the positions of Assistant Vice President of Capital Markets and Director Performance Analysis. During his 19 years with CSX, Mr. Pelkey has held a variety of other roles, including managerial roles in investor relations, financial planning and technology finance. Kevin S.
Pelkey, 44 Executive Vice President and Chief Financial Officer Pelkey was named Executive Vice President and Chief Financial Officer in January 2022. In this role, he guides all of the finance activities for the Company including accounting, financial planning, investor relations, procurement, tax and treasury.
Pelkey, 45 Executive Vice President and Chief Financial Officer Mr. Pelkey was named Executive Vice President and Chief Financial Officer in January 2022. In this role, he is responsible for all of the finance activities for the Company including accounting, financial planning, investor relations, procurement, tax and treasury. Prior to this role, Mr.
In this role, he is responsible for leading the Company's technology strategy development and all aspects of CSX's information technology systems operations, including cybersecurity. Prior to joining CSX with nearly 20 years of information technology experience, he spent 30 years at BP, most recently as Chief Information Officer of the global BP group. Nathan D.
In this role, he is responsible for leading the Company's technology strategy development, supporting business growth through innovative digital solutions and overseeing all aspects of CSX's information technology systems operations, including cybersecurity. Prior to joining CSX with nearly 20 years of information technology experience, Mr.
Goldman, 66 Executive Vice President and Chief Legal Officer Goldman has served as Executive Vice President and Chief Legal Officer, and Corporate Secretary of CSX since November 2017. In this role, he directs the Company’s legal affairs, government relations, risk management, public safety, environmental, and audit functions. During his 20 years with the Company, Mr.
Burns was named as the Senior Vice President, Chief Legal Officer, and Corporate Secretary, effective January 2, 2025. In this role, he is responsible for the Company's legal and regulatory affairs, risk management, public safety, environmental, and internal audit functions. During his 18 years with the Company, Mr.
In this role, her responsibilities include human resources, people systems and analytics, total rewards, facilities and aviation. During her 12 years with the Company, Ms. Sorfleet has previously served as Chief Human Resources Officer. Prior to joining CSX, she worked in human resources for 20 years. Angela C.
Sorfleet was named Executive Vice President and Chief Administrative Officer in July 2018. In this role, she is responsible for human resources, people systems and analytics, total rewards, facilities and aviation. During her 13 years with the Company, Ms. Sorfleet also had responsibility for technology and labor relations and, prior to her current role, served as Chief Human Resources Officer.
Williams, 49 Vice President and Chief Accounting Officer Williams has served as Vice President and Chief Accounting Officer of CSX since March 2018. She is responsible for financial and regulatory reporting, freight billing and collections, payroll, accounts payable and various other accounting processes.
She is responsible for financial and regulatory reporting, freight billing and collections, payroll, accounts payable and various other accounting processes. During her 21 years with the Company, she also served as Assistant Vice President - Assistant Controller and in other various accounting roles. With more than 25 years of experience, Ms.
During her 20 years with the Company, she previously served as Assistant Vice President - Assistant Controller and in other various accounting roles. With more than 25 years of experience, Williams held various accounting and auditing positions prior to joining CSX. Ms. Williams is a Certified Public Accountant in the state of Florida.
Williams held various accounting and auditing positions at KPMG LLP and Winn-Dixie Stores, Inc. prior to joining CSX. Ms. Williams is a Certified Public Accountant in the state of Florida. CSX 2024 Form 10-K p.22 CSX CORPORATION PART II
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Goldman has previously served as Vice President of Risk Compliance and General Counsel and has overseen work in compliance, risk management and safety programs. Diana B. Sorfleet, 59 Executive Vice President and Chief Administrative Officer Sorfleet was named Executive Vice President and Chief Administrative Officer in July 2018.
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Fortune spent 30 years at BP, most recently as Chief Information Officer of the global BP group and with earlier experience as a chemical and process engineer before moving into operations management. Michael S. Burns, 49 Senior Vice President and Chief Legal Officer, Corporate Secretary Mr.
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CSX 2023 Form 10-K p.22 CSX CORPORATION PART II
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Burns also served as Vice President, General Counsel, and Assistant Corporate Secretary as well as a variety of other legal roles. Prior to joining CSX, Mr. Burns worked in private practice with a focus on labor and employment law. Diana B. Sorfleet, 60 Executive Vice President and Chief Administrative Officer Ms.
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Prior to joining CSX, Ms. Sorfleet was Vice President of Diversity and Development at Exelon with 20 years of human resources experience in various positions involving recruiting, employee relations, strategic planning and leadership development. Angela C. Williams, 50 Vice President and Chief Accounting Officer Ms. Williams has served as Vice President and Chief Accounting Officer of CSX since March 2018.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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The Company references the Standard & Poor's 500 Stock Index (“S&P 500 ®”), and the Dow Jones U.S. Transportation Average Index, which provide comparisons to a broad-based market index and other companies in the transportation industry.
The Company references the Standard & Poor's 500 Stock Index (“S&P 500 ®”), and the Dow Jones U.S. Transportation Average Index ("DJT"), which provide comparisons to a broad-based market index and other companies in the transportation industry.
There are no preemptive rights, which are privileges extended to select shareholders that would allow them to purchase additional shares before other members of the general public in the event of an offering. At January 31, 2024, the latest practicable date that is closest to the filing date, there were 21,547 common stock shareholders of record.
There are no preemptive rights, which are privileges extended to select shareholders that would allow them to purchase additional shares before other members of the general public in the event of an offering. At January 31, 2025, the latest practicable date that is closest to the filing date, there were 20,567 common stock shareholders of record.
The weighted average of common shares outstanding, which was used in the calculation of diluted earnings per share, was 2,013 million as of December 31, 2023. (See Note 2, Earnings Per Share .) A total of 25 million shares of preferred stock is authorized, none of which is currently outstanding.
The weighted average of common shares outstanding, which was used in the calculation of diluted earnings per share, was 1,943 million as of December 31, 2024 (see Note 2, Earnings Per Share ). A total of 25 million shares of preferred stock is authorized, none of which is currently outstanding.
Quarter 1st 2nd 3rd 4th Year 2023 $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 2022 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.40 CSX 2023 Form 10-K p.23 CSX CORPORATION PART II Stock Performance Graph The cumulative shareholder returns, assuming reinvestment of dividends, on $100 invested at December 31, 2018 are illustrated on the graph below.
Quarter 1st 2nd 3rd 4th Year 2024 $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.48 2023 $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 CSX 2024 Form 10-K p.23 CSX CORPORATION PART II Stock Performance Graph The cumulative shareholder returns, assuming reinvestment of dividends, on $100 invested at December 31, 2019 are illustrated on the graph below.
The official trading symbol is “CSX.” Description of Common and Preferred Stock A total of 5.4 billion shares of common stock are authorized, of which 1,958,427,685 shares were outstanding as of December 31, 2023. Each share is entitled to one vote in all matters requiring a vote of shareholders.
The official trading symbol is “CSX.” Description of Common and Preferred Stock A total of 5.4 billion shares of common stock are authorized, of which 1,900,189,590 shares were outstanding as of December 31, 2024. Each share is entitled to one vote in all matters requiring a vote of shareholders.
CSX 2023 Form 10-K p.24 CSX CORPORATION PART II CSX Purchases of Equity Securities During November 2023, the share repurchase program announced in July 2022 was completed and the Company began repurchasing shares under the $5 billion share repurchase program approved on October 17, 2023. Total repurchase authority remaining as of December 31, 2023 was $4.8 billion.
CSX 2024 Form 10-K p.24 CSX CORPORATION PART II CSX Purchases of Equity Securities During fourth quarter 2023, the share repurchase program announced in July 2022 was completed and the Company began repurchasing shares under the $5 billion share repurchase program approved in October 2023. Total repurchase authority remaining as of December 31, 2024 was $2.6 billion.
Share repurchase activity of $581 million for the fourth quarter 2023 was as follows: CSX Purchases of Equity Securities for the Quarter Fourth Quarter Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs Beginning Balance $ 371,411,668 October 1 - October 31, 2023 10,791,515 $ 30.53 10,791,515 41,950,017 November 1 - November 30, 2023 6,756,749 30.66 6,756,749 4,834,766,702 December 1 - December 31, 2023 1,326,238 33.45 1,326,238 4,790,399,073 Ending Balance 18,874,502 $ 30.78 18,874,502 $ 4,790,399,073
CSX Purchases of Equity Securities for the Quarter Fourth Quarter Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs Beginning Balance $ 3,578,784,545 October 1 - October 31, 2024 8,928,889 $ 33.77 8,928,889 3,277,276,394 November 1 - November 30, 2024 4,196,033 34.85 4,196,033 3,131,027,408 December 1 - December 31, 2024 16,409,163 33.19 16,409,163 2,586,389,217 Ending Balance 29,534,085 $ 33.60 29,534,085 $ 2,586,389,217
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For more information about share repurchases, see Note 2, Earnings Per Share .
Added
For more information about share repurchases, see Note 2, Earnings Per Share . Share repurchase activity of $992 million for the fourth quarter 2024 is shown in the table below. Amounts exclude the impact of excise tax on net share repurchases imposed as part of the Inflation Reduction Act of 2022.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Risk Factors and elsewhere in this report, may cause actual results to differ materially from those contemplated by any forward-looking statements: • legislative, regulatory or legal developments involving transportation, including rail or intermodal transportation, the environment, hazardous materials, taxation, international trade and initiatives to further regulate the rail industry; • the outcome of litigation, claims and other contingent liabilities, including, but not limited to, those related to fuel surcharge, environmental matters, taxes, shipper and rate claims subject to adjudication, personal injuries and occupational illnesses; • changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation, as well as the impact of international trade agreements and tariffs) and the level of demand for products carried by CSXT; CSX 2023 Form 10-K p.46 CSX CORPORATION PART II • natural events such as severe weather conditions, including floods, fire, hurricanes and earthquakes, a pandemic crisis affecting the health of the Company's employees, its shippers or the consumers of goods, or other unforeseen disruptions of the Company's operations, systems, property, equipment or supply chain; • competition from other modes of freight transportation, such as trucking, and competition and consolidation or financial distress within the transportation industry generally; • the cost of compliance with laws and regulations that differ from expectations as well as costs, penalties and operational and liquidity impacts associated with noncompliance with applicable laws or regulations; • the impact of increased passenger activities in capacity-constrained areas, including potential effects of high speed rail initiatives, or regulatory changes affecting when CSXT can transport freight or service routes; • unanticipated conditions in the financial markets that may affect timely access to capital markets and the cost of capital, as well as management's decisions regarding share repurchases; • changes in fuel prices, surcharges for fuel and the availability of fuel; • the impact of natural gas prices on coal-fired electricity generation; • the impact of global supply and price of seaborne coal on CSX's export coal market; • availability of insurance coverage at commercially reasonable rates or insufficient insurance coverage to cover claims or damages; • the inherent business risks associated with safety and security, including the transportation of hazardous materials or a cybersecurity attack which would threaten the availability and reliability of information technology; • adverse economic or operational effects from actual or threatened war or terrorist activities and any governmental response; • loss of key personnel or the inability to hire and retain qualified employees; • labor and benefit costs and labor difficulties, including stoppages affecting either the Company's operations or customers' ability to deliver goods to the Company for shipment; • the Company's success in implementing its strategic, financial and operational initiatives, including acquisitions; • the impact of conditions in the real estate market on the Company's ability to sell assets; • changes in operating conditions and costs, including the impacts of inflation, or commodity concentrations; • the impacts of a public health crisis and any policies or initiatives instituted in response; and • the inherent uncertainty associated with projecting economic and business conditions.
Risk Factors and elsewhere in this report, may cause actual results to differ materially from those contemplated by any forward-looking statements: • legislative, regulatory or legal developments involving transportation, including rail or intermodal transportation, the environment, hazardous materials, taxation, international trade and initiatives to further regulate the rail industry; • the outcome of litigation, claims and other contingent liabilities, including, but not limited to, those related to fuel surcharge, environmental matters, taxes, shipper and rate claims subject to adjudication, personal injuries and occupational illnesses; • changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation, as well as the impact of international trade agreements and tariffs) and the level of demand for products carried by CSXT; CSX 2024 Form 10-K p.48 CSX CORPORATION PART II • natural events such as severe weather conditions, including floods, fire, hurricanes and earthquakes, a pandemic crisis affecting the health of the Company's employees, its shippers or the consumers of goods, or other unforeseen disruptions of the Company's operations, systems, property, equipment or supply chain; • competition from other modes of freight transportation, such as trucking, and competition and consolidation or financial distress within the transportation industry generally; • the cost of compliance with laws and regulations that differ from expectations as well as costs, penalties and operational and liquidity impacts associated with noncompliance with applicable laws or regulations; • the impact of increased passenger activities in capacity-constrained areas, including potential effects of high speed rail initiatives, or regulatory changes affecting when CSXT can transport freight or service routes; • unanticipated conditions in the financial markets that may affect timely access to capital markets and the cost of capital, as well as management's decisions regarding share repurchases; • changes in fuel prices, surcharges for fuel and the availability of fuel; • the impact of natural gas prices on coal-fired electricity generation; • the impact of global supply and price of seaborne coal on CSX's export coal market; • availability of insurance coverage at commercially reasonable rates or insufficient insurance coverage to cover claims or damages; • the inherent business risks associated with safety and security, including the transportation of hazardous materials or a cybersecurity attack which would threaten the availability and reliability of information technology; • adverse economic or operational effects from actual or threatened war or terrorist activities and any governmental response; • loss of key personnel or the inability to hire and retain qualified employees; • labor and benefit costs and labor difficulties, including stoppages affecting either the Company's operations or customers' ability to deliver goods to the Company for shipment; • the Company's success in implementing its strategic, financial and operational initiatives, including acquisitions; • the impact of conditions in the real estate market on the Company's ability to sell assets; • changes in operating conditions and costs, including the impacts of inflation, or commodity concentrations; • the impacts of a public health crisis and any policies or initiatives instituted in response; and • the inherent uncertainty associated with projecting economic and business conditions.
Free cash flow - The calculation of a non-GAAP measure by using net cash provided by operating activities and adjusting for property additions and certain other investing activities. Free cash flow is a measure of cash available for paying dividends, share repurchases and principal reduction on outstanding debt.
Free cash flow ("FCF") - The calculation of a non-GAAP measure by using net cash provided by operating activities and adjusting for property additions and certain other investing activities. Free cash flow is a measure of cash available for paying dividends, share repurchases and principal reduction on outstanding debt.
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.
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 over three phases.
Average shares outstanding was lower as a result of share repurchase activity during the year and had a favorable impact on earnings per diluted share. CSX 2023 Form 10-K p.32 CSX CORPORATION PART II NON-GAAP MEASURES (Unaudited) CSX reports its financial results in accordance with United States generally accepted accounting principles ("GAAP").
Average shares outstanding was lower as a result of share repurchase activity during the year and had a favorable impact on earnings per diluted share. CSX 2024 Form 10-K p.32 CSX CORPORATION PART II NON-GAAP MEASURES (Unaudited) CSX reports its financial results in accordance with United States generally accepted accounting principles ("GAAP").
Ratings of BBB- and Baa3 or better by S&P and Moody’s, respectively, reflect ratings on debt obligations that fall within a band of credit quality considered to be investment grade. If CSX's credit ratings were to decline to below investment-grade levels, the Company could experience significant increases in its interest cost for new debt.
Ratings of BBB- by S&P and Fitch and Baa3 by Moody’s, or better, reflect ratings on debt obligations that fall within a band of credit quality considered to be investment grade. If CSX's credit ratings were to decline to below investment-grade levels, the Company could experience significant increases in its interest cost for new debt.
The Company’s contractual obligations primarily consist of long-term debt and related interest payments, purchase commitments, leases, other-post employment benefits and agreements with Conrail. • As of December 31, 2023, the Company had outstanding fixed-rate notes with varying maturities. See Note 10, Debt and Credit Agreements , for additional information related to future debt payments.
The Company’s contractual obligations primarily consist of long-term debt and related interest payments, purchase commitments, leases, other-post employment benefits and agreements with Conrail. • As of December 31, 2024, the Company had outstanding fixed-rate notes with varying maturities. See Note 10, Debt and Credit Agreements , for additional information related to future debt payments.
As this assumption is long term, the annual review may result in less frequent adjustment than other assumptions used in pension accounting. The long-term rate of return on plan assets used by the Company to value its benefit cost for the subsequent plan year was 6.75% in both 2023 and 2022.
As this assumption is long term, the annual review may result in less frequent adjustment than other assumptions used in pension accounting. The long-term rate of return on plan assets used by the Company to value its benefit cost for the subsequent plan year was 6.75% in both 2024 and 2023.
Intermodal - A flexible way of transporting freight over highway, rail and water without being removed from the original transportation equipment, namely a container or trailer. CSX 2023 Form 10-K p.26 CSX CORPORATION PART II Mainline - The main track thoroughfare, exclusive of terminals, yards, sidings and turnouts.
Intermodal - A flexible way of transporting freight over highway, rail and water without being removed from the original transportation equipment, namely a container or trailer. CSX 2024 Form 10-K p.26 CSX CORPORATION PART II Mainline - The main track thoroughfare, exclusive of terminals, yards, sidings and turnouts.
The Company also has a commercial paper program, backed by the revolving credit facility, under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1.0 billion outstanding at any one time. As of December 31, 2023, the Company had no outstanding debt under the commercial paper program.
The Company also has a commercial paper program, backed by the revolving credit facility, under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $1.0 billion outstanding at any one time. As of December 31, 2024, the Company had no outstanding debt under the commercial paper program.
Other Commitments and Off-Balance Sheet Arrangements Other commitments total $187 million and primarily consist of guarantees, letters of credit and surety bonds, none of which are individually significant. These off-balance sheet arrangements are not reasonably likely to have a material effect on the Company's financial condition, results of operations or liquidity.
Other Commitments and Off-Balance Sheet Arrangements Other commitments total $208 million and primarily consist of surety bonds, guarantees, and letters of credit, none of which are individually significant. These off-balance sheet arrangements are not reasonably likely to have a material effect on the Company's financial condition, results of operations or liquidity.
In 2023, CSX continued to invest in its business to create long-term value for shareholders. The Company is committed to maintaining and improving its existing infrastructure and to positioning itself for long-term, profitable growth through optimizing network and terminal capacity. Funds used for property additions are further described below.
In 2024, CSX continued to invest in its business to create long-term value for shareholders. The Company is committed to maintaining and improving its existing infrastructure and to positioning itself for long-term, profitable growth through optimizing network and terminal capacity. Funds used for property additions are further described below.
To have a complete picture of a company’s liquidity, its sources and uses of cash, balance sheet and external factors should be reviewed. Significant Cash Flows The following charts highlight the operating, investing and financing components of the change in cash and cash equivalents for operating, investing and financing activities for full years 2023 and 2022.
To have a complete picture of a company’s liquidity, its sources and uses of cash, balance sheet and external factors should be reviewed. Significant Cash Flows The following charts highlight the operating, investing and financing components of the change in cash and cash equivalents for operating, investing and financing activities for full years 2024 and 2023.
CSX has access to a $1.2 billion five-year unsecured revolving credit facility backed by a diverse syndicate of banks that expires in February 2028. As of December 31, 2023, the Company had no outstanding balances under this facility.
CSX has access to a $1.2 billion five-year unsecured revolving credit facility backed by a diverse syndicate of banks that expires in February 2028. As of December 31, 2024, the Company had no outstanding balances under this facility.
A 1% change in the average estimated useful life of all group-life assets would result in an approximate $13 million change to the Company’s annual depreciation expense. There were no significant changes to the Company's asset lives as a result of the 2022 and 2020 studies.
A 1% change in the average estimated useful life of all group-life assets would result in an approximate $14 million change to the Company’s annual depreciation expense. There were no significant changes to the Company's asset lives as a result of the 2022 and 2020 studies.
If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. The following important factors, in addition to those discussed in Part II, Item 1A.
If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. The following important factors, in addition to those discussed in Part I, Item 1A.
For employees hired between 2003 and 2019, benefits are determined based on a cash balance formula, which provides benefits by utilizing interest and pay credits based upon age, service and compensation. Beginning in 2020, the CSX Pension Plan was closed to new participants. As of December 2023, the projected benefit obligation for the Company’s pension plans was $2.3 billion .
For employees hired between 2003 and 2019, benefits are determined based on a cash balance formula, which provides benefits by utilizing interest and pay credits based upon age, service and compensation. Beginning in 2020, the CSX Pension Plan was closed to new participants. As of December 2024, the projected benefit obligation for the Company’s pension plans was $2.2 billion .
New Accounting Pronouncements and Changes in Accounting Policy See Note 1, Nature of Operations and Significant Accounting Policies under the caption “New Accounting Pronouncements.” CSX 2023 Form 10-K p.45 CSX CORPORATION PART II FORWARD-LOOKING STATEMENTS Certain statements in this report and in other materials filed with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made by the Company, are forward-looking statements.
New Accounting Pronouncements and Changes in Accounting Policy See Note 1, Nature of Operations and Significant Accounting Policies, under the caption “New Accounting Pronouncements.” CSX 2024 Form 10-K p.47 CSX CORPORATION PART II FORWARD-LOOKING STATEMENTS Certain statements in this report and in other materials filed with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made by the Company, are forward-looking statements.
While CSX seeks to give itself flexibility with respect to cash requirements, there can be no assurance that market conditions would permit CSX to sell such securities on acceptable terms at any given time, or at all. In 2023, CSX issued $600 million of long-term debt. See Note 10, Debt and Credit Agreements for more information.
While CSX seeks to give itself flexibility with respect to cash requirements, there can be no assurance that market conditions would permit CSX to sell such securities on acceptable terms at any given time, or at all. In 2024, CSX issued $550 million of long-term debt. See Note 10, Debt and Credit Agreements for more information.
Other Assumptions The calculations made by the actuaries also include assumptions relating to mortality rates, turnover, retirement age and salary inflation rates. These assumptions are based upon historical data, recent plan experience and industry trends and are determined by management. 2024 Estimated Pension Expense Net periodic pension benefit expense for 2024 is expected to be a credit of $22 million.
Other Assumptions The calculations made by the actuaries also include assumptions relating to mortality rates, turnover, retirement age and salary inflation rates. These assumptions are based upon historical data, recent plan experience and industry trends and are determined by management. 2025 Estimated Pension Expense Net periodic pension benefit expense for 2025 is expected to be a credit of $7 million.
CSX 2023 Form 10-K p.42 CSX CORPORATION PART II Critical Accounting Estimates, continued Pension Plan Accounting The Company sponsors defined benefit pension plans principally for salaried, management personnel. For employees hired prior to 2003, the plans provide eligible employees with retirement benefits based predominantly on years of service and compensation rates near retirement.
CSX 2024 Form 10-K p.44 CSX CORPORATION PART II Critical Accounting Estimates, continued Pension Plan Accounting The Company sponsors defined benefit pension plans principally for salaried, management personnel. For employees hired prior to 2003, the plans provide eligible employees with retirement benefits based predominantly on years of service and compensation rates near retirement.
CSX 2023 Form 10-K p.41 CSX CORPORATION PART II CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates in reporting the amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and certain revenues and expenses during the reporting period.
CSX 2024 Form 10-K p.43 CSX CORPORATION PART II CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates in reporting the amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and certain revenues and expenses during the reporting period.
RESULTS OF OPERATIONS The following section generally discusses the Company's results of operations and financial condition for the year ended December 31, 2023, compared to the year ended December 31, 2022.
RESULTS OF OPERATIONS The following section generally discusses the Company's results of operations and financial condition for the year ended December 31, 2024, compared to the year ended December 31, 2023.
Significant estimates using management judgment are made for the following areas: • personal injury and environmental reserves; • pension plan accounting; and • depreciation policies for assets under the group-life method Personal Injury and Environmental Reserves Personal Injury Personal Injury reserves of $128 million and $126 million for 2023 and 2022, respectively, represent liabilities for employee work-related and third-party injuries.
Significant estimates using management judgment are made for the following areas: • personal injury and environmental reserves; • pension plan accounting; and • depreciation policies for assets under the group-life method Personal Injury and Environmental Reserves Personal Injury Personal Injury reserves of $142 million and $128 million for 2024 and 2023, respectively, represent liabilities for employee work-related and third-party injuries.
Environmental Environmental reserves were $154 million and $161 million for 2023 and 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 230 environmentally impaired sites.
Environmental Environmental reserves were $151 million and $154 million for 2024 and 2023, 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 230 environmentally impaired sites.
CSX 2023 Form 10-K p.43 CSX CORPORATION PART II Critical Accounting Estimates, continued Long-term Rate of Return on Plan Assets The expected long-term average rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for benefits included in the projected benefit obligation.
CSX 2024 Form 10-K p.45 CSX CORPORATION PART II Critical Accounting Estimates, continued Long-term Rate of Return on Plan Assets The expected long-term average rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for benefits included in the projected benefit obligation.
CSX 2023 Form 10-K p.35 CSX CORPORATION PART II The Company is committed to continuous improvement in safety and service performance through training, innovation and investment. Training and safety programs are designed to prevent incidents that can adversely impact employees, customers and communities.
CSX 2024 Form 10-K p.37 CSX CORPORATION PART II The Company is committed to continuous improvement in safety and service performance through training, innovation and investment. Training and safety programs are designed to prevent incidents that can adversely impact employees, customers and communities.
CSX 2023 Form 10-K p.40 CSX CORPORATION PART II CONTRACTUAL OBLIGATIONS, OTHER COMMITMENTS AND OFF-BALANCE SHEET ARRANGEMENTS Contractual Obligations CSX is party to contractual arrangements that obligate the Company to make future cash payments. These obligations impact the Company’s liquidity and capital resource needs.
CSX 2024 Form 10-K p.42 CSX CORPORATION PART II CONTRACTUAL OBLIGATIONS, OTHER COMMITMENTS AND OFF-BALANCE SHEET ARRANGEMENTS Contractual Obligations CSX is party to contractual arrangements that obligate the Company to make future cash payments. These obligations impact the Company’s liquidity and capital resource needs.
CSX 2023 Form 10-K p.30 CSX CORPORATION PART II Expense In 2023, total expenses increased $266 million, or 3%, compared to prior year. Descriptions of each expense category as well as significant year-over-year changes are described below. Labor and Fringe expenses include employee wages and related payroll taxes, health and welfare costs, pension, other post-retirement benefits and incentive compensation.
CSX 2024 Form 10-K p.30 CSX CORPORATION PART II Expense In 2024, total expenses increased $137 million, or 1%, compared to prior year. Descriptions of each expense category as well as significant year-over-year changes are described below. Labor and Fringe expenses include employee wages and related payroll taxes, health and welfare costs, pension, other post-retirement benefits and incentive compensation.
The two largest rating agencies, Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Service (“Moody’s”), use alphanumeric codes to designate their ratings. The highest quality rating for long-term credit obligations is AAA and Aaa for S&P and Moody’s, respectively.
The three largest rating agencies, Standard & Poor’s Ratings Services (“S&P”), Moody’s Investors Service (“Moody’s”), and Fitch Ratings ("Fitch"), use alphanumeric codes to designate their ratings. The highest quality rating for long-term credit obligations is AAA for S&P and Fitch and is Aaa for Moody’s.
The following sensitivity analysis illustrates the effects of a 1% change in certain assumptions on the 2024 estimated pension expense: (Dollars in Millions) Pension Expense Discount Rate $ 12 Long-term Rate of Return $ 25 CSX 2023 Form 10-K p.44 CSX CORPORATION PART II Critical Accounting Estimates, continued Depreciation Policies for Assets Utilizing the Group-Life Method The depreciable assets of the Company are depreciated using either the group-life or straight-line method of accounting, which are both acceptable depreciation methods in accordance with GAAP.
The following sensitivity analysis illustrates the effects of a 1% change in certain assumptions on the 2025 estimated pension expense: (Dollars in Millions) Pension Expense Discount Rate $ 14 Long-term Rate of Return $ 24 CSX 2024 Form 10-K p.46 CSX CORPORATION PART II Critical Accounting Estimates, continued Depreciation Policies for Assets Utilizing the Group-Life Method The depreciable assets of the Company are depreciated using either the group-life or straight-line method of accounting, which are both acceptable depreciation methods in accordance with GAAP.
See Note 8, Commitments and Contingencies , for additional information about future payments related to purchase commitments. • Capital expenditures include investments related to public-private partnerships. These partnership investments are typically for projects tha t are partially or wholly reimbursed to CSX through government awards or other funding sources.
See Note 8, Commitments and Contingencies , for additional information about future payments related to purchase commitments. • Capital expenditures include investments related to public-private partnerships. These partnership inve stments are typically for projects that are partially or wholly reimbursed to CSX through government awards or other funding sources.
The weighted average discount rate used by the Company to value its pension obligations was 4.82% and 5.02% as of December 2023, and December 2022, respectively. As of December 2023, the estimated duration of pension benefits is approximately 9 years.
The weighted average discount rate used by the Company to value its pension obligations was 5.50% and 4.82% as of December 2024, and December 2023, respectively. As of December 2024, the estimated duration of pension benefits is approximately 9 years.
CSX 2023 Form 10-K p.39 CSX CORPORATION PART II Credit Ratings Credit ratings reflect an independent agency’s judgment on the likelihood that a borrower will repay a debt obligation at maturity.
CSX 2024 Form 10-K p.41 CSX CORPORATION PART II Credit Ratings Credit ratings reflect an independent agency’s judgment on the likelihood that a borrower will repay a debt obligation at maturity.
The Company ended the year with $1.4 billion of cash, cash equivalents and short-term investments. Total assets as well as total liabilities and shareholders' equity increased $496 million from prior year end.
The Company ended the year with $1.0 billion of cash, cash equivalents and short-term investments. Total assets as well as total liabilities and shareholders' equity increased $552 million from prior year end.
Future interest payments associated with outstanding debt total $14.3 billion, with $804 million payable in 2024. • Purchase commitments consist o f CSX’s long-term locomotive maintenance program and other commitments to purchase technology, communications, railcar maintenance and other services.
Future interest payments associated with outstanding debt total $14.3 billion, with $806 million payable in 2025. • Purchase commitments consist o f CSX’s long-term locomotive maintenance and rebuild program and other commitments to purchase technology, communications, railcar maintenance and other services.
CSX 2023 Form 10-K p.31 CSX CORPORATION PART II Interest Expense Interest Expense includes interest on long-term debt and related fair value hedges, equipment obligations and finance leases. Interest expense increased $67 million primarily as a result of higher average debt balances and higher effective interest rates.
CSX 2024 Form 10-K p.31 CSX CORPORATION PART II Interest Expense Interest Expense includes interest on long-term debt and related fair value hedges, equipment obligations and finance leases. Interest expense increased $23 million primarily as a result of higher average debt balances.
Net periodic pension benefit expense for 2024 is expected to include service cost expense of $23 million. Service cost expense is included in labor and fringe on the consolidated income statement and all other components of net pension expense are included in other income - net. Net periodic pension expense in 2023 was a credit of $1 million.
Net periodic pension benefit expense for 2025 is expected to include service cost expense of $21 million. Service cost expense is included in labor and fringe on the consolidated income statement and all other components of net pension expense are included in other income - net. Net periodic pension expense in 2024 was a credit of $20 million.
Project contribution commitments that are not reimbursable total $55 million as of December 31, 2023. • The Company’s leases include property, equipment, and line leases.
Project contribution commitments that are not reimbursable total $26 million as of December 31, 2024. • The Company’s leases include property, equipment, and line leases.
The information on the CSX website is not part of this annual report on Form 10-K. CSX 2023 Form 10-K p.47 CSX CORPORATION PART II
The information on the CSX website is not part of this annual report on Form 10-K. CSX 2024 Form 10-K p.49 CSX CORPORATION PART II
The Company depreciates its railroad assets, including main-line track, locomotives and freight cars, using the group-life method of accounting. Assets depreciated under the group-life method comprise 84% of total fixed assets of $50.3 billion on a gross basis at December 31, 2023.
The Company depreciates its railroad assets, including main-line track, locomotives and freight cars, using the group-life method of accounting. Assets depreciated under the group-life method comprise 86% of total fixed assets of $52.2 billion on a gross basis at December 31, 2024.
Depreciation expense primarily relates to recognizing the costs of capital assets, such as locomotives, railcars and track structure, over their respective useful lives, which are reviewed periodically as part of depreciation studies. This expense is impacted primarily by the capital expenditures made each year.
Depreciation expense primarily relates to recognizing the costs of capital assets, such as locomotives, railcars and track structure, over their respective useful lives, which are reviewed periodically as part of depreciation studies. This expense is impacted primarily by the capital expenditures made each year. Depreciation expense increased $51 million primarily due to a larger net asset base.
The Company filed a shelf registration statement with the SEC on February 16, 2022, which may be used to issue debt or equity securities at CSX’s discretion, subject to market conditions and CSX Board authorization.
The Company intends to file a shelf registration statement with the SEC, which may be used to issue debt or equity securities at CSX’s discretion, subject to market conditions and CSX Board authorization.
LABOR AGREEMENTS Approximately 17,700 of the Company's approximately 23,000 employees are members of a rail labor union. As of December 2, 2022, all 12 rail unions at CSX that participated in national bargaining were covered by national agreements with the Class I railroads and CSX-specific agreements that will remain in effect through December 31, 2024.
LABOR AGREEMENTS Approximately 17,500 of the Company's approximately 23,500 employees are members of a rail labor union. There are 12 rail unions at CSX that participate in national bargaining. As of December 2, 2022, all of these rail unions were covered by national agreements with the Class I railroads and CSX-specific agreements that remained in effect through December 31, 2024.
Critical Accounting Estimates, continued Discount Rates Discount rates affect the amount of liability recorded and the service and interest cost components of pension expense.
Discount Rates Discount rates affect the amount of liability recorded and the service and interest cost components of pension expense.
More specifically, free cash flow measures cash generated by the business after reinvestment. This measure represents cash available for both equity and bond investors to be used for dividends, share repurchases or principal reduction on outstanding debt. Free cash flow is calculated by using net cash from operations and adjusting for property additions and proceeds from property dispositions.
This measure represents cash available for both equity and bond investors to be used for dividends, share repurchases or principal reduction on outstanding debt. FCF is calculated by using net cash from operations and adjusting for property additions and proceeds and advances from property dispositions.
Other Income - Net Other Income - Net includes investment gains, losses, interest income, components of net periodic pension and post-retirement benefit cost and other non-operating activities. Other income increased $6 million primarily due to higher interest income and other non-significant items, partially offset by a decrease in net pension benefit credits.
Other Income - Net Other Income - Net includes investment gains, losses, interest income, components of net periodic pension and post-retirement benefit cost and other non-operating activities. Other income increased $3 million primarily due to increases in net pension benefit credits partially offset by lower income related to customer finance charges and a decrease in investment gains.
On-Time Origina tions - Percent of scheduled road trains that depart the origin yard on-time or ahead of schedule. On-Time Arrivals - Percent of scheduled road trains that arrive at the destination yard on-time to within two hours of scheduled arrival.
On-Time Arrivals - Percent of scheduled road trains that arrive at the destination yard on-time to within two hours of scheduled arrival.
The 2022 equipment study resulted in an increase in annual depreciation expense of approximately $80 million primarily due to deferred losses on assets depreciated using the group-life method. A depreciation study was not performed in 2023.
The 2022 equipment study resulted in an increase in annual depreciation expense of approximately $80 million primarily due to deferred losses on assets depreciated using the group-life method. The Company plans to complete the next depreciation study for equipment assets in 2025.
Fiscal Years 2023 2022 Improvement/ (Deterioration) Operations Performance (a) Train Velocity (Miles per hour) 18.0 16.1 12 % Dwell (Hours) 9.4 11.3 17 % Cars Online 125,580 138,074 9 % On-Time Originations 77 % 60 % 28 % On-Time Arrivals 71 % 52 % 37 % Carload Trip Plan Performance 84 % 64 % 31 % Intermodal Trip Plan Performance 95 % 90 % 6 % Fuel Efficiency 1.02 0.99 (3) % Revenue Ton-Miles (Billions) Merchandise 128.0 126.0 2 % Coal 37.4 33.8 11 % Intermodal 28.3 30.0 (6) % Total Revenue Ton-Miles 193.7 189.8 2 % Total Gross Ton-Miles (Billions) 381.3 375.5 2 % Safety (b) FRA Personal Injury Frequency Index 0.89 1.01 12 % FRA Train Accident Rate 3.32 3.37 1 % (a) Beginning second quarter 2023, all operations performance metrics include results from the network acquired from Pan Am.
Fiscal Years 2024 2023 Improvement/ (Deterioration) Operations Performance (a) Train Velocity (Miles per hour) 18.3 18.0 2 % Dwell (Hours) 10.3 9.4 (10) % Cars Online 127,291 125,580 (1) % On-Time Originations 73 % 77 % (5) % On-Time Arrivals 65 % 71 % (8) % Carload Trip Plan Performance 79 % 84 % (6) % Intermodal Trip Plan Performance 91 % 95 % (4) % Fuel Efficiency 0.98 1.02 4 % Revenue Ton-Miles (Billions) Merchandise 129.8 128.0 1 % Coal 35.7 37.4 (5) % Intermodal 28.8 28.3 2 % Total Revenue Ton-Miles 194.3 193.7 — % Total Gross Ton-Miles (Billions) 384.4 381.3 1 % Safety (b) FRA Personal Injury Frequency Index 1.19 0.94 (27) % FRA Train Accident Rate 3.40 3.44 1 % (a) Beginning second quarter 2023, all operations performance metrics include results from the network acquired from Pan Am.
Dwell - Average amount of time in hours between car arrival to and departure from the yard. Cars Online - Average number of active freight rail cars on lines operated by CSX, excluding rail cars that are being repaired, in storage, those that have been sold, or private cars dwelling at a customer location more than one day.
Cars Online - Average number of active freight rail cars on lines operated by CSX, excluding rail cars that are being repaired, in storage, those that have been sold, or private cars dwelling at a customer location more than one day. On-Time Origina tions - Percent of scheduled road trains that depart the origin yard on-time or ahead of schedule.
The net increase in the expected credit is primarily due to impacts from recent favorable pension asset experience.
The net decrease in the expected credit is primarily due to recent less favorable plan asset experience.
CSX 2023 Form 10-K p.27 CSX CORPORATION PART II 2023 HIGHLIGHTS • Revenue of $14.7 billion decreased $196 million or 1% versus the prior year. • Expenses of $9.1 billion increased $266 million or 3% year over year. • Operating income of $5.6 billion decreased $462 million or 8% year over year. • Operating ratio of 62.1% increased 260 basis points from 59.5%. • Earnings per diluted share of $1.85 decreased $0.10 or 5% year over year.
CSX 2024 Form 10-K p.27 CSX CORPORATION PART II 2024 HIGHLIGHTS • Revenue of $14.5 billion decreased $117 million or 1% versus the prior year. • Expenses of $9.3 billion increased $137 million or 1% year over year. • Operating income of $5.2 billion decreased $254 million or 5% year over year. • Operating margin of 36.1% decreased 140 basis points from 37.5%. • Earnings per diluted share of $1.79 decreased $0.03 or 2% year over year.
Domestic coal decreased due to lower shipments of coal to northern utility plants. Trucking Revenue Trucking revenue decreased $84 million versus the prior year due to lower fuel and capacity surcharges. Other Revenue Other revenue was $330 million lower, primarily resulting from lower intermodal storage and equipment usage.
Domestic coal decreased primarily due to lower shipments of coal to utility plants, as well as lower shipments to river and lake terminals. Trucking Revenue Trucking revenue decreased $38 million versus the prior year due to lower fuel and capacity surcharges. Other Revenue Other revenue was $79 million lower, primarily resulting from lower carload demurrage and other items.
On February 14, 2024, the Company's Board of Directors authorized a 9% increase in the quarterly cash dividend to $0.12 per common share effective March 2024. Management's assessment of market conditions and other factors guides the timing and volume of repurchases. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances.
The 2025 dividend increase is the 21 st consecutive increase in CSX's annual dividend. Management's assessment of market conditions and other factors guides the timing and volume of repurchases. Future share repurchases are expected to be funded by cash on hand, cash generated from operations and debt issuances.
Total purchased services and other expenses increased $79 million driven by the following: • An increase of $101 million was due to higher operating support costs, which were primarily due to inflation and higher repair and maintenance costs.
Total purchased services and other expenses increased $50 million driven by the following: • An increase of $17 million was due to impairments of technology and non-rail equipment, partially offset by prior year inventory adjustments. • An increase of $17 million was due to higher operating support costs, which were primarily due to inflation and higher intermodal volumes.
Income Tax Expense Income Tax Expense decreased $72 million primarily due to lower earnings before income taxes, partially offset by prior year favorable state legislative changes. Net Earnings and Earnings per Diluted Share Net Earnings decreased $451 million to $3.7 billion, and earnings per diluted share decreased $0.10 to $1.85, due to the factors mentioned above.
Income Tax Expense Income Tax Expense decreased $76 million primarily due to lower earnings before income taxes. Net Earnings and Earnings per Diluted Share Net Earnings decreased $198 million to $3.5 billion, and earnings per diluted share decreased $0.03 to $1.79, due to the factors mentioned above.
Forest Products – Decreased primarily due to lower shipments of pulpboard, paper, and lumber, partially offset by higher shipments of other building products. Fertilizers - Decreased due to declines in short-haul shipments, which were partially offset by increases in long-haul potash and phosphate shipments.
Minerals - Increased due to higher shipments of cement, partially offset by lower shipments of aggregates. Forest Products – Increased due to higher shipments of pulpboard, paper, and building products. Metals and Equipment - Decreased primarily due to lower steel and scrap shipments. Fertilizers - Decreased primarily due to declines in short-haul phosphates shipments.
Spending to sustain core infrastructure with a focus on safety and reliability will be a top priority. In addition, management is committed to investments that promote profitable growth, including projects supporting service enhancements and productivity initiatives, including investments in locomotives and freight cars. CSX intends to fund capital investments primarily through cash generated from operations.
In addition, management is committed to investments that promote profitable growth, including projects supporting service enhancements and productivity initiatives, including investments in locomotives and freight cars. CSX intends to fund capital investments primarily through cash generated from operations. CSX is continually evaluating market and regulatory conditions that could affect the Company’s ability to generate sufficient returns on capital investments.
Depreciation expense increased $111 million primarily due to the impacts of a 2022 equipment depreciation study as well as a larger net asset base. Fuel expense includes locomotive diesel fuel as well as non-locomotive fuel. This expense is largely driven by the market price and locomotive consumption of diesel fuel.
Fuel expense includes locomotive diesel fuel as well as non-locomotive fuel. This expense is largely driven by the market price and locomotive consumption of diesel fuel. Fuel expense decreased $209 million primarily due to a 13% decrease in locomotive fuel prices and improved efficiency.
Key Performance Measures Definitions: Train Velocity - Average train speed between origin and destination in miles per hour (does not include locals, yard jobs, work trains or passenger trains). Train velocity measures actual train miles and times of a train movement on CSX's network.
The impact of including Pan Am data was insignificant. (b) Effective January 1, 2024, safety metrics include results from the Pan Am network. The impact was insignificant. Key Performance Measures Definitions: Train Velocity - Average train speed between origin and destination in miles per hour (does not include locals, yard jobs, work trains or passenger trains).
The closing price of $600 million was funded through a combination of common stock valued at $422 million and cash totaling $178 million. Total cash consideration paid to acquire the business includes a $30 million deposit paid in fourth quarter 2020. For further details, refer to Note 17, Business Combinations . Acquisition of Quality Carriers, Inc.
Total cash consideration paid to acquire the business includes a $30 million deposit paid in fourth quarter 2020. For further details, refer to Note 17, Business Combinations .
These expenses increased $163 million due to the following items: • An increase of $144 million was driven by inflation. • An increase of $89 million was due to the impacts of higher headcount and union employee vacation and sick benefits. • Incentive compensation costs decreased $34 million primarily due to lower expected payouts as well as the impacts of accelerated expense for eligible employees in the prior year. • Prior year amounts included $32 million of out-of-period labor and benefit costs due to the agreement reached with labor unions. • Other costs decreased by $4 million due to non-significant items.
These expenses increased $113 million due to the following items: • An increase of $96 million was driven by inflation. • An increase of $62 million was due to the impacts of higher headcount and union employee vacation and sick benefits. • Incentive compensation costs decreased $46 million primarily due to lower expected payouts. • Net other costs increased by $1 million due to non-significant items.
CSX is committed to reducing risk and enhancing the overall safety of its employees, customers and communities in which the Company operates.
While the personal injury frequency increased in 2024 compared to the prior year, the FRA train accident rate decreased. Safety is a top priority at CSX, and the Company is committed to reducing risk and enhancing the overall safety of its employees, customers, and communities in which the Company operates.
A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. The cost and availability of unsecured financing are materially affected by CSX's long-term credit ratings.
A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. CSX's credit ratings remained stable during 2024 with no changes in the Company's S&P or Moody's ratings from prior year.
CSX 2023 Form 10-K p.37 CSX CORPORATION PART II CSX is committed to returning cash to shareholders. Capital structure, capital investments and cash distributions, including dividends and share repurchases, are reviewed at least annually by the Board of Directors.
CSX is committed to returning cash to shareholders. Capital structure, capital investments and cash distributions, including dividends and share repurchases, are reviewed at least annually by the Board of Directors. On February 12, 2025, the Company's Board of Directors authorized an 8% increase in the quarterly cash dividend to $0.13 per common share effective March 2025.
This measure should be considered in addition to, rather than a substitute for, cash provided by operating activities.
This measure should be considered in addition to, rather than a substitute for, cash provided by operating activities. FCF before dividends decreased $561 million year-over-year to $2.8 billion primarily due to higher property additions and less cash from operating activities.
Increases in Economic Profit indicate that the Company is effectively allocating capital and rewarding shareholders by generating growth in excess of the incremental cost of capital associated with reinvestment in the business. This measure should be considered in addition to, rather than a substitute for, net income.
Increases in Economic Profit indicate that the Company is effectively allocating capital and rewarding shareholders by generating returns in excess of the incremental cost of capital associated with reinvestment in the business. GCE is calculated as operating income plus depreciation, amortization and operating lease expense, less unusual items and taxes.
This decrease of $1.2 billion since year end is primarily due to cash paid for share repurchases of $3.5 billion, property additions of $2.3 billion and dividend payments of $882 million, as well as a $558 million of long-term debt maturing in 2024.
This decrease of $592 million since year end is primarily driven by a $420 million decrease in cash as property additions of $2.5 billion, share repurchases of $2.2 billion, and dividend payments of $930 million more than offset $5.2 billion in cash generated by operating activities.
These decreases were partially offset by cash earned from operations of $5.5 billion and $600 million in cash received from debt issued. CSX 2023 Form 10-K p.38 CSX CORPORATION PART II The Company’s working capital balance varies due to factors such as the timing of scheduled debt payments and changes in cash and cash equivalent balances.
CSX 2024 Form 10-K p.40 CSX CORPORATION PART II The Company’s working capital balance varies due to factors such as the timing of scheduled debt payments and changes in cash and cash equivalent balances. A working capital deficit is not unusual for CSX or other companies in the industry and does not indicate a lack of liquidity.
Intermodal Volume Lower volume was due to decreased international shipments driven by high inventory levels and lower imports. Domestic shipments increased due to growth with key customers as well as the prior year impact of supply-side constraints. Coal Volume Export coal increased due to higher shipments of metallurgical and thermal coal.
Intermodal Volume Intermodal volume increased primarily due to international shipments driven by higher imports through east coast ports and inventory replenishments. Domestic shipments also increased due to growth with key customers despite a soft trucking environment. Coal Volume Export coal increased due to higher shipments of metallurgical and thermal coal.
The methodology for calculating train velocity, dwell, cars online and trip plan performance differs from that used by the Surface Transportation Board. The Company will continue to report these metrics to the Surface Transportation Board using the prescribed methodology.
The Company will continue to report these metrics to the Surface Transportation Board using the prescribed methodology.
Total liabilities increased $988 million from prior year end primarily due to the issuance of $600 million in long-term debt, a $414 million increase in income and other taxes payable largely related to postponed federal estimated tax payments, a $177 million increase in deferred income taxes and a $107 million increase in accounts payable.
Total liabilities increased $30 million from prior year end primarily due to the issuance of $550 million in long-term debt and the deferral of $429 million of federal and state tax payments related to the 2024 tax year postponed under tax relief announcements for those impacted by the 2024 hurricane season.
Cash from operating activities includes lower cash-generating net earnings and the impact of $168 million of higher payments for retroactive wages and bonuses, and associated taxes, related to finalized labor agreements as well as the offsetting impact of $381 million of postponed federal estimated tax payments, which were extended until first quarter 2024 under an Internal Revenue Service tax relief announcement for those impacted by Hurricane Idalia.
The 2024 results also reflect lower cash-generating net earnings as well as non-cash impacts of $429 million of federal and state tax payments postponed to 2025, as previously discussed. Cash from operating activities in the prior year includes the payment of $238 million for retroactive wages and bonuses, and associated taxes, related to finalized labor agreements.
The increase in total assets was primarily due to a $693 million increase in net properties consistent with planned capital expenditures, a $113 million increase in net pension assets for qualified pension plans, a $105 million increase in materials and supplies and a $105 million increase in investments in affiliates and other companies.
The increase in total assets was primarily due to a $937 million increase in net properties consistent with planned capital expenditures and a $123 million increase in investments in affiliates and other companies. These increases were partially offset by a $420 million decrease in cash and cash equivalents as noted above and a $108 million impairment of Quality Carriers' goodwill.
Furthermore, CSX has sufficient financial capacity, including its revolving credit facility, commercial paper program and shelf registration statement to manage its day-to-day cash requirements and any anticipated obligations. The Company from time to time accesses the credit markets for additional liquidity. Completed Transactions Acquisition of Pan Am Systems, Inc. On June 1, 2022, CSX completed its acquisition of Pan Am.
The Company continues to maintain adequate current assets to satisfy current liabilities and maturing obligations when they come due. Furthermore, CSX has sufficient financial capacity, including its revolving credit facility, commercial paper program and its ability to file and use shelf registration statements to manage its day-to-day cash requirements and any anticipated obligations.
Gains from the Virginia transaction of $144 million were excluded for 2022. (b) Gross operating assets reflects an average of reported balance sheet figures. CSX 2023 Form 10-K p.33 CSX CORPORATION PART II Free Cash Flow Management believes free cash flow is useful to investors as it is important in evaluating the Company’s financial performance.
CSX 2024 Form 10-K p.35 CSX CORPORATION PART II Free Cash Flow Management believes free cash flow ("FCF") is useful to investors as it is important in evaluating the Company’s financial performance. More specifically, FCF measures cash generated by the business after reinvestment.
These declines were partially offset by pricing and volume gains in merchandise and higher coal volumes. Merchandise Volume Chemicals - Increased shipments of export plastics, waste, and sand were offset by lower shipments of materials used in making plastics. Agricultural and Food Products – Decreased primarily due to lower shipments of ethanol and export grain.
These decreases were partially offset by pricing gains in merchandise as well as higher merchandise and intermodal volumes. Merchandise Volume Chemicals - Increased due to higher shipments of plastics, crude oil, natural gas liquids, and other industrial chemicals.
Fuel expense decreased $249 million primarily due to a 19% decrease in locomotive fuel prices, partially offset by higher fuel consumption. Equipment and Other Rents expense includes rent paid for freight cars owned by other railroads or private companies, net of rents received by CSXT for use of its equipment.
Equipment and Other Rents expense includes rent paid for freight cars owned by other railroads or private companies, net of rents received by CSXT for use of its equipment. This category of expenses also includes expenses for short-term and long-term leases of locomotives, railcars, containers, tractors and trailers, offices and other rentals.
Cash used in financing activities was $3.9 billion, which represents an increase in net spend of $98 million from the prior year primarily due to lower proceeds from the issuance of long-term debt, partially offset by lower share repurchases.
The Company used $805 million less cash for financing activities compared to the prior year primarily due to lower share repurchases, partially offset by higher net debt repayments. Sources of Cash and Liquidity The Company has multiple sources of liquidity, including cash generated from operations and financing sources.
Years Ended Capital Expenditures (Dollars in Millions) 2023 2022 Track $ 1,007 $ 1,000 Bridges, Signals and Other 693 673 Total Infrastructure 1,700 1,673 Strategic Projects and Commercial Facilities 304 251 Freight Cars 136 75 Locomotives 117 104 Regulatory (including PTC) 24 30 Total Capital Expenditures $ 2,281 $ 2,133 Planned capital investments for 2024 are expected to be approximately $2.5 billion.
Years Ended Capital Expenditures (Dollars in Millions) 2024 2023 (a) Track $ 1,039 $ 983 Bridges, Signals, PTC and Other 802 717 Total Infrastructure 1,841 1,700 Strategic Projects and Commercial Facilities 364 304 Locomotives 250 117 Freight Cars 74 136 Cash Invested for Capital Expenditures $ 2,529 $ 2,257 (a) See Note 20, Revision of Prior Period Financial Statements.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of CSX Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of CSX Corporation (the Company) as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2023 and the related notes (collectively referred to as the “consolidated financial statements”).
Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of CSX Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of CSX Corporation (the Company) as of December 31, 2024 and 2023, the related consolidated income statements, comprehensive income statements, statements of changes in shareholders’ equity and cash flow statements for each of the three years in the period ended December 31, 2024 and the related notes (collectively referred to as the “consolidated financial statements”).
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 14, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 27, 2025 expressed an unqualified opinion thereon.
Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 50 CSX Corporation Consolidated Financial Statements and Notes to Consolidated Financial Statements Herewith: Consolidated Income Statements for the Years Ended: 52 December 31, 2023 December 31, 2022 December 31, 2021 Consolidated Comprehensive Income Statements for the Years Ended: 53 December 31, 2023 December 31, 2022 December 31, 2021 Consolidated Balance Sheets as of: 54 December 31, 2023 December 31, 2022 Consolidated Cash Flow Statements for Years Ended: 55 December 31, 2023 December 31, 2022 December 31, 2021 Consolidated Statements of Changes in Shareholders' Equity: 56 December 31, 2023 December 31, 2022 December 31, 2021 Notes to Consolidated Financial Statements 57 CSX 2023 Form 10-K p.49 CSX CORPORATION PART II Item 8.
Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) 52 CSX Corporation Consolidated Financial Statements and Notes to Consolidated Financial Statements Herewith: Consolidated Income Statements for the Years Ended: 54 December 31, 2024 December 31, 2023 December 31, 2022 Consolidated Comprehensive Income Statements for the Years Ended: 55 December 31, 2024 December 31, 2023 December 31, 2022 Consolidated Balance Sheets as of: 56 December 31, 2024 December 31, 2023 Consolidated Cash Flow Statements for Years Ended: 57 December 31, 2024 December 31, 2023 December 31, 2022 Consolidated Statements of Changes in Shareholders' Equity: 58 December 31, 2024 December 31, 2023 December 31, 2022 Notes to Consolidated Financial Statements 59 CSX 2024 Form 10-K p.51 CSX CORPORATION PART II Item 8.
CSX 2023 Form 10-K p.50 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, continued Depreciation Policies for Assets Utilizing the Group-Life Method Description of the Matter As of December 31, 2023, assets depreciated under the group-life method comprised 84% of total gross fixed assets of $50.3 billion.
CSX 2024 Form 10-K p.52 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Depreciation Policies for Assets Utilizing the Group-Life Method Description of the Matter As of December 31, 2024, assets depreciated under the group-life method comprised 86% of total gross fixed assets of $52.2 billion.
The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to SOFR on a cumulative $800 million of fixed rate outstanding notes, which are due between 2036 and 2040. As of December 31, 2023, the cumulative fair value of these swaps was a $107 million liability.
The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to the SOFR on a cumulative $800 million of fixed rate outstanding notes which are due between 2036 and 2040.
In 2023, CSX entered into two 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 ("SOFR") on a cumulative $250 million of fixed rate outstanding notes which are due in 2033.
Subsequent to 2024, the Company entered into two fixed-to-floating interest rate swaps classified as fair value hedges in January 2025. The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to SOFR on a cumulative $250 million of fixed rate outstanding notes which are due in 2055.
The following information, together with information included in Note 10, Debt and Credit Agreements , and Note 13, Fair Value Measurements , describes the key aspects of such contracts and the related market risk to CSX. Changes in interest rates could impact the fair value of the Company's forward starting interest rate swaps.
The following information, together with information included in Note 10, Debt and Credit Agreements , and Note 13, Fair Value Measurements , describes the key aspects of such contracts and the related market risk to CSX.
We compared the assumptions used by management to those used throughout the industry and within other depreciation studies. We assessed the historical accuracy of management’s estimates via retrospective review and independently recalculated the current year depreciation rates.
We compared the assumptions used by management to those used throughout the industry and within other depreciation studies. We assessed the historical accuracy of management’s estimates via retrospective review and independently recalculated the current year depreciation rates. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1981.
In 2020, the Company executed two forward starting interest rate swaps with 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 notes due in 2027.
Cash Flow Hedges The Company had forward starting interest rate swaps, classified as cash flow hedges, that had an aggregate notional value of $500 million at inception. 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 of December 31, 2023, the potential change in fair value of fixed-to-floating interest rate swaps resulting from a hypothetical 10% change in interest rates would not be material. As of December 31, 2023, CSX has no floating rate notes outstanding.
As of December 31, 2024, the cumulative fair value of these swaps was a $123 million liability. As of December 31, 2024, the potential change in fair value of fixed-to-floating interest rate swaps resulting from a hypothetical 10% change in interest rates would not be material.
CSX 2023 Form 10-K p.53 CSX CORPORATION PART II Item 8.
Jacksonville, Florida February 27, 2025 CSX 2024 Form 10-K p.53 CSX CORPORATION PART II Item 8.
As of December 31, 2023, the cumulative fair value of these swaps was a $19 million asset. In 2022, CSX entered into five separate fixed-to-floating interest rate swaps classified as fair value hedges.
The cumulative fair value of these swaps, which is included in other long-term assets on the consolidated balance sheet, was an asset of $7 million and $19 million as of December 31, 2024 and December 31, 2023, respectively. In first quarter 2022, CSX entered into five separate fixed-to-floating interest rate swaps classified as fair value hedges.
Financial Statements and Supplementary Data CONSOLIDATED CASH FLOW STATEMENTS (Dollars in Millions) Years Ended 2023 2022 2021 OPERATING ACTIVITIES Net Earnings $ 3,715 $ 4,166 $ 3,781 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,611 1,500 1,420 Deferred Income Taxes 140 117 167 Gains on Property Dispositions (34) (238) (454) Other Operating Activities (5) (17) 12 Changes in Operating Assets and Liabilities: Accounts Receivable (51) (101) (141) Other Current Assets (120) (22) (25) Accounts Payable 83 140 128 Income and Other Taxes Payable 431 (39) 72 Other Current Liabilities (221) 113 139 Net Cash Provided by Operating Activities 5,549 5,619 5,099 INVESTING ACTIVITIES Property Additions (2,281) (2,133) (1,791) Purchases of Short-term Investments (104) (59) (75) Proceeds from Sales of Short-term Investments 153 9 5 Proceeds and Advances from Property Dispositions 52 246 529 Business Acquisition, Net of Cash Acquired (Note 17) (31) (227) (541) Other Investing Activities (76) 33 (4) Net Cash Used in Investing Activities (2,287) (2,131) (1,877) FINANCING ACTIVITIES Shares Repurchased (3,482) (4,731) (2,886) Dividends Paid (882) (852) (839) Long-term Debt Repaid (153) (186) (426) Long-term Debt Issued (Note 10) 600 2,000 — Other Financing Activities 50 — 39 Net Cash Used in Financing Activities (3,867) (3,769) (4,112) Net Decrease in Cash and Cash Equivalents (605) (281) (890) CASH AND CASH EQUIVALENTS Cash and Cash Equivalents at Beginning of Period 1,958 2,239 3,129 Cash and Cash Equivalents at End of Period $ 1,353 $ 1,958 $ 2,239 SUPPLEMENTAL CASH FLOW INFORMATION Issuance of Common Stock as Consideration for Acquisition $ — $ 422 $ — Interest Paid - Net of Amounts Capitalized $ 806 $ 729 $ 718 Income Taxes Paid $ 630 $ 1,167 $ 931 See accompanying Notes to Consolidated Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED CASH FLOW STATEMENTS (Dollars in Millions) Years Ended 2024 (a) 2023 (a) 2022 (a) OPERATING ACTIVITIES Net Earnings $ 3,470 $ 3,668 $ 4,114 Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities: Depreciation and Amortization 1,658 1,607 1,502 Goodwill Impairment (Note 19) 108 — — Deferred Income Taxes 12 126 100 Gains on Property Dispositions (11) (34) (238) Other Operating Activities (64) (7) (16) Changes in Operating Assets and Liabilities: Accounts Receivable 82 (51) (101) Other Current Assets 45 (112) (24) Accounts Payable (5) 83 140 Income and Other Taxes Payable (19) 430 (39) Other Current Liabilities (29) (196) 88 Net Cash Provided by Operating Activities 5,247 5,514 5,526 INVESTING ACTIVITIES Property Additions (2,529) (2,257) (2,113) Purchases of Short-term Investments (66) (104) (59) Proceeds from Sales of Short-term Investments 91 153 9 Proceeds and Advances from Property Dispositions 66 88 294 Business Acquisition, Net of Cash Acquired (Note 17) (70) (31) (227) Other Investing Activities (97) (76) 33 Net Cash Used in Investing Activities (2,605) (2,227) (2,063) FINANCING ACTIVITIES Shares Repurchased (2,237) (3,482) (4,731) Dividends Paid (930) (882) (852) Long-term Debt Repaid (558) (153) (186) Long-term Debt Issued (Note 10) 550 600 2,000 Other Financing Activities 113 50 — Net Cash Used in Financing Activities (3,062) (3,867) (3,769) Net Decrease in Cash and Cash Equivalents (420) (580) (306) CASH AND CASH EQUIVALENTS Cash and Cash Equivalents at Beginning of Period 1,353 1,933 2,239 Cash and Cash Equivalents at End of Period $ 933 $ 1,353 $ 1,933 SUPPLEMENTAL CASH FLOW INFORMATION Issuance of Common Stock as Consideration for Acquisition $ — $ — $ 422 Interest Paid - Net of Amounts Capitalized $ 850 $ 806 $ 729 Income Taxes Paid $ 1,076 $ 630 $ 1,167 Capital Expenditures Accrued but Not Yet Paid $ 247 $ 186 $ 163 (a) See Note 20, Revision of Prior Period Financial Statements.
In 2022, CSX settled a portion equal to $160 million notional value of the cash flow hedges. In 2023, CSX executed two partial settlements equal to $226 million notional value of the cash flow hedges. As of December 31, 2023, these cash flow hedges had an aggregate notional value of $114 million and an asset value of $48 million.
In 2022, CSX settled a portion equal to $160 million notional value of the aggregate $500 million cash flow hedges, which resulted in CSX receiving a cash payment of $52 million. In 2023, CSX executed partial settlements equal to $226 million notional value of the cash flow hedges, which resulted in CSX receiving a cash payment of $95 million.
CSX 2023 Form 10-K p.54 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.54 CSX CORPORATION PART II Item 8.
Financial Statements and Supplementary Data CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Dollars in Millions) Years Ended 2023 2022 2021 Net Earnings $ 3,715 $ 4,166 $ 3,781 Other Comprehensive Income (Loss) - Net of Tax: Pension and Other Post-Employment Benefits 74 (66) 167 Interest Rate Derivatives — 80 8 Other 2 6 15 Total Other Comprehensive Income (Note 16) 76 20 190 Comprehensive Earnings $ 3,791 $ 4,186 $ 3,971 See accompanying Notes to Consolidated Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (Dollars in Millions) Years Ended 2024 (a) 2023 (a) 2022 (a) Net Earnings $ 3,470 $ 3,668 $ 4,114 Other Comprehensive Income (Loss) - Net of Tax: Pension and Other Post-Employment Benefits 41 129 (120) Interest Rate Derivatives 3 — 80 Other 3 2 6 Total Other Comprehensive Income (Loss) (Note 16) 47 131 (34) Comprehensive Earnings $ 3,517 $ 3,799 $ 4,080 (a) See Note 20, Revision of Prior Period Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED BALANCE SHEETS (Dollars in Millions) December December 2023 2022 ASSETS Current Assets: Cash and Cash Equivalents $ 1,353 $ 1,958 Short-term Investments 83 129 Accounts Receivable - Net (Note 11) 1,393 1,313 Materials and Supplies 446 341 Other Current Assets 109 108 Total Current Assets 3,384 3,849 Properties 50,320 48,105 Accumulated Depreciation (15,385) (13,863) Properties - Net (Note 6) 34,935 34,242 Investment in Affiliates and Other Companies (Note 15) 2,397 2,292 Right of Use Lease Asset (Note 7) 498 505 Goodwill and Other Intangible Assets - Net (Note 18) 506 502 Other Long-term Assets 688 522 Total Assets $ 42,408 $ 41,912 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 1,237 $ 1,130 Labor and Fringe Benefits Payable 517 707 Casualty, Environmental and Other Reserves (Note 5) 144 144 Current Maturities of Long-term Debt (Note 10) 558 151 Income and Other Taxes Payable 525 111 Other Current Liabilities 243 228 Total Current Liabilities 3,224 2,471 Casualty, Environmental and Other Reserves (Note 5) 296 292 Long-term Debt (Note 10) 17,975 17,896 Deferred Income Taxes - Net (Note 12) 7,746 7,569 Long-term Lease Liability (Note 7) 491 488 Other Long-term Liabilities 543 571 Total Liabilities 30,275 29,287 Shareholders' Equity: Common Stock, $1 Par Value (Note 3) 1,959 2,066 Other Capital 691 574 Retained Earnings 9,790 10,363 Accumulated Other Comprehensive Loss (Note 16) (312) (388) Non-controlling Minority Interest 5 10 Total Shareholders' Equity 12,133 12,625 Total Liabilities and Shareholders' Equity $ 42,408 $ 41,912 See accompanying Notes to Consolidated Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED BALANCE SHEETS (Dollars in Millions) December December 2024 2023 (a) ASSETS Current Assets: Cash and Cash Equivalents $ 933 $ 1,353 Short-term Investments 72 83 Accounts Receivable - Net (Note 11) 1,326 1,393 Materials and Supplies 414 440 Other Current Assets 75 90 Total Current Assets 2,820 3,359 Properties 52,191 50,281 Accumulated Depreciation (16,533) (15,560) Properties - Net (Note 6) 35,658 34,721 Investment in Affiliates and Other Companies (Note 15) 2,520 2,397 Right of Use Lease Asset (Note 7) 487 498 Goodwill and Other Intangible Assets - Net (Note 19) 433 506 Other Long-term Assets 846 731 Total Assets $ 42,764 $ 42,212 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 1,290 $ 1,237 Labor and Fringe Benefits Payable 480 517 Casualty, Environmental and Other Reserves (Note 5) 149 144 Current Maturities of Long-term Debt (Note 10) 606 558 Income and Other Taxes Payable 508 524 Other Current Liabilities 243 243 Total Current Liabilities 3,276 3,223 Casualty, Environmental and Other Reserves (Note 5) 313 296 Long-term Debt (Note 10) 17,897 17,975 Deferred Income Taxes - Net (Note 12) 7,725 7,699 Long-term Lease Liability (Note 7) 486 491 Other Long-term Liabilities 560 543 Total Liabilities 30,257 30,227 Shareholders' Equity: Common Stock, $1 Par Value (Note 3) 1,900 1,959 Other Capital 846 691 Retained Earnings 9,988 9,609 Accumulated Other Comprehensive Loss (Note 16) (232) (279) Non-controlling Minority Interest 5 5 Total Shareholders' Equity 12,507 11,985 Total Liabilities and Shareholders' Equity $ 42,764 $ 42,212 (a) See Note 20, Revision of Prior Period Financial Statements.
Treasury rates, or approximately 40 basis points, is estimated to be $730 million as of December 31, 2023, and $709 million as of December 31, 2022. The underlying fair values of the Company's long-term debt were estimated based on quoted market prices or on the current rates offered for debt with similar terms and maturities.
The underlying fair values of the Company's long-term debt were estimated based on quoted market prices or on the current rates offered for debt with similar terms and maturities. CSX 2024 Form 10-K p.50 CSX CORPORATION PART II Item 8.
CSX 2023 Form 10-K p.48 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.55 CSX CORPORATION PART II Item 8.
CSX 2023 Form 10-K p.52 CSX CORPORATION PART II Item 8.
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.56 CSX CORPORATION PART II Item 8.
Financial Statements and Supplementary Data CONSOLIDATED INCOME STATEMENTS (Dollars in Millions, Except Per Share Amounts) Years Ended 2023 2022 2021 Revenue $ 14,657 $ 14,853 $ 12,522 Expense Labor and Fringe 3,024 2,861 2,550 Purchased Services and Other 2,764 2,685 2,135 Depreciation and Amortization 1,611 1,500 1,420 Fuel 1,377 1,626 913 Equipment and Other Rents 354 396 364 Gains on Property Dispositions (34) (238) (454) Total Expense 9,096 8,830 6,928 Operating Income 5,561 6,023 5,594 Interest Expense (809) (742) (722) Other Income - Net (Note 14) 139 133 79 Earnings Before Income Taxes 4,891 5,414 4,951 Income Tax Expense (Note 12) (1,176) (1,248) (1,170) Net Earnings $ 3,715 $ 4,166 $ 3,781 Per Common Share (Note 2) Net Earnings Per Share Basic $ 1.85 $ 1.95 $ 1.68 Assuming Dilution $ 1.85 $ 1.95 $ 1.68 Average Common Shares Outstanding (Millions) Basic 2,008 2,136 2,250 Assuming Dilution 2,013 2,141 2,255 See accompanying Notes to Consolidated Financial Statements.
Financial Statements and Supplementary Data CONSOLIDATED INCOME STATEMENTS (Dollars in Millions, Except Per Share Amounts) Years Ended 2024 (a) 2023 (a) 2022 (a) Revenue $ 14,540 $ 14,657 $ 14,853 Expense Labor and Fringe 3,165 3,052 2,885 Purchased Services and Other 2,852 2,802 2,728 Depreciation and Amortization 1,658 1,607 1,502 Fuel 1,168 1,377 1,626 Equipment and Other Rents 355 354 396 Goodwill Impairment (Note 19) 108 — — Gains on Property Dispositions (11) (34) (238) Total Expense 9,295 9,158 8,899 Operating Income 5,245 5,499 5,954 Interest Expense (832) (809) (742) Other Income - Net (Note 14) 142 139 133 Earnings Before Income Taxes 4,555 4,829 5,345 Income Tax Expense (Note 12) (1,085) (1,161) (1,231) Net Earnings $ 3,470 $ 3,668 $ 4,114 Per Common Share (Note 2) Net Earnings Per Share Basic $ 1.79 $ 1.83 $ 1.93 Assuming Dilution $ 1.79 $ 1.82 $ 1.92 Average Common Shares Outstanding (Millions) Basic 1,939 2,008 2,136 Assuming Dilution 1,943 2,013 2,141 (a) See Note 20, Revision of Prior Period Financial Statements.
However, changes in interest rates could impact the fair value (but not the carrying value) of the Company's fixed rate long-term debt. The potential decrease in fair value of the Company's fixed rate long-term debt resulting from a hypothetical 10% increase in U.S.
The potential decrease in fair value of the Company's fixed rate long-term debt resulting from a hypothetical 10% increase in U.S. Treasury rates, or approximately 46 basis points, is estimated to be $756 million as of December 31, 2024, and $730 million as of December 31, 2023.
As of December 31, 2023, the potential change in fair value of forward starting interest rate swaps resulting from a hypothetical 10% change in interest rates would not be material. Changes in interest rates could impact the fair value of the Company's fixed-to-floating interest rate swaps.
Changes in interest rates no longer impact the fair value of the Company's forward starting interest rate swaps because they are fully settled as of 12/31/2024. Changes in interest rates could impact the fair value of the Company's fixed-to-floating interest rate swaps. In 2023, CSX entered into two separate fixed-to-floating interest rate swaps classified as fair value hedges.
CSX 2023 Form 10-K p.55 CSX CORPORATION PART II
See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.57 CSX CORPORATION PART II Item 8.
Removed
We have served as the Company’s auditor since 1981. /s/ Ernst & Young LLP Jacksonville, Florida February 14, 2024 CSX 2023 Form 10-K p.51 CSX CORPORATION PART II Item 8.
Added
The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to the Secured Overnight Financing Rate ("SOFR") on a cumulative $250 million of fixed rate outstanding notes which are due in 2033. As of December 31, 2024, the cumulative fair value of these swaps was a $7 million asset.
Added
In 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 SOFR on a cumulative $800 million of fixed rate outstanding notes, which are due between 2036 and 2040.
Added
The fair value of these swaps at inception is $0. As of December 31, 2024, CSX had no floating rate notes outstanding. However, changes in interest rates could impact the fair value (but not the carrying value) of the Company's fixed rate long-term debt.
Added
Financial Statements and Supplementary Data CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Dollars in Millions) Common Shares Outstanding (Thousands) Common Stock and Other Capital Retained Earnings (a) Accumulated Other Comprehensive (Loss) Income (a,b) Non- controlling Minority Interest Total Shareholders' Equity (a) December 31, 2021 2,201,787 $ 2,268 $ 11,549 $ (376) $ 10 $ 13,451 Comprehensive Earnings: Net Earnings — — 4,114 — — 4,114 Other Comprehensive Income (Note 16) — — — (34) — (34) Total Comprehensive Earnings 4,080 Common Stock Dividends,$0.40 per share — (852) (852) Share Repurchases (151,419) (151) (4,580) — — (4,731) Issuance of Common Stock for Acquisition of Pan Am Systems, Inc. 13,173 422 — — — 422 Other 2,826 101 (2) — — 99 December 31, 2022 2,066,367 2,640 10,229 (410) 10 12,469 Comprehensive Earnings: Net Earnings — — 3,668 — — 3,668 Other Comprehensive Income (Note 16) — — — 131 — 131 Total Comprehensive Earnings 3,799 Common Stock Dividends, $0.44 per share — — (882) — — (882) Share Repurchases (112,484) (112) (3,370) — — (3,482) Excise Tax on Net Share Repurchases — — (33) — — (33) Other 4,874 122 (3) — (5) 114 December 31, 2023 1,958,757 2,650 9,609 (279) 5 11,985 Comprehensive Earnings: Net Earnings — — 3,470 — — 3,470 Other Comprehensive Income (Note 16) — — — 47 — 47 Total Comprehensive Earnings 3,517 Common Stock Dividends, $0.48 per share — — (930) — — (930) Share Repurchases (64,556) (65) (2,139) — — (2,204) Excise Tax on Net Share Repurchases — — (20) — — (20) Other 5,989 161 (2) — — 159 December 31, 2024 1,900,190 $ 2,746 $ 9,988 $ (232) $ 5 $ 12,507 (a) See Note 20, Revision of Prior Period Financial Statements.
Added
(b) Accumulated Other Comprehensive Loss year-end balances shown above are net of tax. The associated taxes were $61 million, $74 million, and $129 million for 2024, 2023 and 2022, respectively. For additional information see Note 16, Other Comprehensive Income (Loss). See accompanying Notes to Consolidated Financial Statements. CSX 2024 Form 10-K p.58 CSX CORPORATION PART II Item 8.
Added
Financial Statements and Supplementary Data NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. Nature of Operations and Significant Accounting Policies Business CSX Corporation together with its subsidiaries ("CSX" or the “Company”), based in Jacksonville, Florida, is one of the nation's leading transportation companies.
Added
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 Transportation, Inc. CSX’s principal operating subsidiary, CSX Transportation, Inc.
Added
(“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.
Added
It has access to over 70 ocean, river and lake port terminals along the Atlantic and Gulf Coasts, the Mississippi River, the Great Lakes and the St. Lawrence Seaway. The Company’s intermodal business links customers to railroads via trucks and terminals.
Added
CSXT also serves thousands of production and distribution facilities through track connections to more than 240 short-line and regional railroads. On June 1, 2022, CSX completed its acquisition of Pan Am Systems, Inc. (“Pan Am”), which is the parent company of Pan Am Railways, Inc. This acquisition expands CSXT’s reach in the Northeastern United States.
Added
For further details, refer to Note 17, Business Combinations. 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.
Added
(“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.
Added
CSX Intermodal Terminals owns and operates a system of intermodal terminals, predominantly in the eastern United States, and also provides drayage services (the pickup and delivery of intermodal shipments) for certain customers. TDSI serves the automotive industry with distribution centers and storage locations.
Added
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 include shipments of plastics and ethanol. CSX Technology and other subsidiaries provide support services for the Company. CSX 2024 Form 10-K p.59 CSX CORPORATION PART II Item 8.
Added
Nature of Operations and Significant Accounting Policies, continued Lines of Business During 2024, the Company's services generated $14.5 billion of revenue and served four primary lines of business: merchandise, intermodal, coal and trucking. • The merchandise business shipped 2.6 million carloads (42% of volume) and generated $8.9 billion in revenue (61% of revenue) in 2024.
Added
The Company’s merchandise business is comprised of shipments in the following diverse markets: chemicals, agricultural and food products, minerals, automotive, forest products, metals and equipment, and fertilizers. • The intermodal business shipped 2.9 million units (46% of volume) and generated $2.0 billion in revenue (14% of revenue) in 2024.
Added
The intermodal business combines the superior economics of rail transportation with the flexibility of trucks and offers a cost and environmental advantage over long-haul trucking.
Added
Through a network of approximately 30 terminals, the intermodal business serves all major markets east of the Mississippi River and transports mainly manufactured consumer goods in containers, providing customers with truck-like service for longer shipments. • The coal business shipped 736 thousand carloads (12% of volume) and generated $2.2 billion in revenue (15% of revenue) in 2024.
Added
The Company transports domestic coal, coke and iron ore to electricity-generating power plants, steel manufacturers and industrial plants as well as export coal to deep-water port facilities.
Added
Most of the export coal the Company transports is used for steelmaking, while the majority of domestic coal the Company ships is used for electricity generation. • The trucking business generated $844 million, or 6%, of revenue in 2024. Trucking revenue includes revenue from the operations of Quality Carriers.
Added
Other revenue accounted for 4% of the Company’s total revenue in 2024. This category includes revenue from regional subsidiary railroads and incidental charges, including intermodal storage and equipment usage, demurrage and switching. Revenue from regional subsidiary railroads includes shipments by railroads that the Company does not directly operate.
Added
Intermodal storage represents charges for customer storage of containers at an intermodal terminal, ramp facility or offsite location beyond a specified period of time. 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.
Added
Segments The Company has two operating segments: rail and trucking. Although the Company provides a breakdown of revenue by line of business, the overall financial and operational performance of the railroad is analyzed as one operating segment due to the integrated nature of the rail network. The trucking segment is not material for separate disclosure.
Added
See Note 18, Segment Reporting and Significant Expenses, for additional information on the Company's segments. Employees The Company's number of employees was more than 23,500 as of December 2024, which includes approximately 17,500 union employees. Most of the Company’s employees provide or support transportation services. CSX 2024 Form 10-K p.60 CSX CORPORATION PART II Item 8.
Added
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 financial position of CSX and its subsidiaries at December 31, 2024 and December 31, 2023, and the consolidated statements of income, comprehensive income, cash flows and changes in shareholders’ equity for the years ended 2024, 2023 and 2022.
Added
In addition, management has evaluated and disclosed all material events occurring subsequent to the date of the financial statements up to the date this annual report is filed on Form 10-K.
Added
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates in reporting the amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of certain revenues and expenses during the reporting period.
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Critical accounting estimates using management judgment are made for the following areas: • personal injury and environmental reserves (see Note 5, Casualty, Environmental and Other Reserves ); • pension plan accounting (see Note 9, Employee Benefit Plans ); and • depreciation policies for assets under the group-life method (see Note 6, Properties ) Fiscal Year The Company's fiscal periods are based upon the calendar year.
Added
Except as otherwise specified, references to full years indicate CSX’s fiscal years ended on December 31, 2024, December 31, 2023, and December 31, 2022. Principles of Consolidation The consolidated financial statements include results of operations of CSX and subsidiaries over which CSX has majority ownership or financial control. All significant intercompany accounts and transactions have been eliminated.
Added
Most investments in companies that were not majority-owned were carried at cost (if less than 20% owned and the Company has no significant influence) or were accounted for under the equity method (if the Company has significant influence but does not have control). These investments are reported within Investment in Affiliates and Other Companies on the consolidated balance sheets.
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CSX 2024 Form 10-K p.61 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data NOTE 1.
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Nature of Operations and Significant Accounting Policies, continued Cash and Cash Equivalents On a daily basis, cash in excess of current operating requirements is invested in various highly liquid investments having a typical maturity date of three months or less at the date of acquisition.
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These investments are carried at cost, which approximates market value, and are classified as cash equivalents. Investments Investments in instruments with original maturities greater than three months that will mature in less than one year are classified as short-term investments.
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Investments with original maturities of one year or greater are initially classified within other long-term assets, and the classification is re-evaluated at each balance sheet date.
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Materials and Supplies Materials and supplies in the consolidated balance sheets are carried at average cost and consist primarily of parts used in the repair and maintenance of track structure, equipment, and CSXT’s freight car and locomotive fleets, as well as fuel.
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New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures . This standard update requires additional interim and annual disclosures about a reportable segment’s expenses, even for companies with only one reportable segment.
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The Company adopted this guidance for this 2024 annual report filed on Form 10-K and the standard update did not impact the Company's results of operations or financial position as the update only impacts disclosures. See Note 18, Segment Reporting and Significant Expenses. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures .
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This standard update requires additional interim and annual disclosures about a company’s income taxes, including more detailed information around the annual rate reconciliation and income taxes paid. The Company is required to adopt the guidance for its 2025 annual report filed on Form 10-K, though early adoption is permitted.
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The Company is currently evaluating the impact of these amendments on its disclosures, but this standard update will not impact the Company's results of operations or financial position. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. This standard update requires additional disclosures about certain expenses in commonly presented expense captions.
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The Company is required to adopt the guidance for its 2027 annual report filed on Form 10-K, though early adoption is permitted. The Company is currently evaluating the impact of these amendments on its disclosures, but this standard update will not impact the Company's results of operations or financial position.
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Revision of Prior Period Financial Statements During second quarter 2024, CSX completed a review of the accounting treatment for engineering scrap and certain engineering support labor and identified misstatements between the balance sheet and operating expense in previously issued financial statements. The Company determined the impacts of these misstatement were immaterial to the financial statements for all prior periods identified.
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For comparative purposes, the Company has made corrections to the consolidated financial statements and applicable notes for the prior periods presented in this Form 10-K. See Note 20, Revision of Prior Period Financial Statements, for additional information and quantification of prior period restatement impacts. CSX 2024 Form 10-K p.62 CSX CORPORATION PART II Item 8.
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Earnings Per Share The following table sets forth the computation of basic earnings per share and earnings per share, assuming dilution: Years Ended 2024 (a) 2023 (a) 2022 (a) Numerator (Dollars in Millions) : Net Earnings $ 3,470 $ 3,668 $ 4,114 Denominator (Units in Millions) : Average Common Shares Outstanding 1,939 2,008 2,136 Other Potentially Dilutive Common Shares 4 5 5 Average Common Shares Outstanding, Assuming Dilution 1,943 2,013 2,141 Net Earnings Per Share, Basic $ 1.79 $ 1.83 $ 1.93 Net Earnings Per Share, Assuming Dilution $ 1.79 $ 1.82 $ 1.92 (a) See Note 20, Revision of Prior Period Financial Statements.
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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.
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CSX's potentially dilutive instruments are made up of equity awards including employee stock options, performance and restricted stock units. When calculating diluted earnings per share, the potential shares that would be outstanding if all outstanding stock options were exercised are included.
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This number is different from outstanding stock options, which is included in Note 4, Stock Plans and Share-Based Compensation , because it is offset by shares CSX could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent.
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The total average outstanding equity awards that were excluded from the diluted earnings per share calculation because their effect was antidilutive is in the table below.
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Years Ended 2024 2023 2022 Antidilutive Stock Options Excluded from Diluted EPS (Units in Millions) 3 3 3 Share Repurchase Programs During fourth quarter 2023, the share repurchase program announced in July 2022 was completed and the Company began repurchasing shares under the $5 billion share repurchase program approved in October 2023.
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Total repurchase authority remaining was $2.6 billion as of December 31, 2024. The previous share repurchase program was announced in October 2020 and completed in July 2022. CSX 2024 Form 10-K p.63 CSX CORPORATION PART II Item 8. Financial Statements and Supplementary Data NOTE 2.
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Earnings Per Share, continued 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.
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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.
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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.
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Share Repurchase Activity During 2024, 2023 and 2022, CSX repurchased the following shares: Years Ended 2024 2023 2022 Shares Repurchased (Units in Millions) 65 112 151 Cost of Shares (Dollars in Millions) $ 2,204 $ 3,482 $ 4,731 Average Price Paid per Share $ 34.14 $ 30.95 $ 31.25 Excise Taxes Paid for Net Share Repurchases (Dollars in Millions) (a) $ 33 $ — $ — (a) Excise tax payments due and paid in 2024 were related to 2023 net share repurchase activity.
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The Inflation Reduction Act of 2022 imposes a nondeductible 1% excise tax on the net value of most share repurchases made after December 31, 2022. Excise tax commensurate with net share repurchases is reflected in equity and a corresponding liability for excise taxes payable is included in other current liabilities on the consolidated balance sheet.

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