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The company's financial position is excellent, and shareholders will receive continued payoffs in dividend growth and stock appreciation. Over the coming decade the expectation will be that CSX expands into the western U.S. with mergers or acquisitions of smaller regional railroads. In so doing the company will continue its delivery of shareholder value by capitalizing on the tremendous growth in coal exports, domestic consumer demand, and intermodal connectivity.
References
CNBC.com. (March 19, 2012). CSX Corporation Quote. CNBC.com. PP. 1. Retrieved
March 19, 2012 from http://data.cnbc.com/quotes/CSX
CNBC.com. (November 3, 2009). CNBC Transcript: Warren Buffett Explains His
Railroad 'All-in Bet' on America. CNBC.com. PP. 1. Retrieved March 19, 2012 from http://www.cnbc.com/id/33603477/CNBC_Transcript_Warren_Buffett_Explains_His_Railroad_All_In_Bet_on_America
CNNMoney.com. (2011). Fortune 500. CSX. CNNMoney.com. PP. 1. Retrieved March
19, 2012 from http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/2069.html
CSX Corporation. (December 30, 2011). Annual SEC 10-K Filing. CSX Corporation. PP.
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CSX Corporation. (2009). Annual Report. CSX Corporation. PP. 1-159. Retrieved March
19, 2012 from http://investors.csx.com/phoenix.zhtml?c=92932&p=irol-reportsannual
CSX Corporation. (2010). Annual Report. CSX Corporation. PP. 1-147. Retrieved March
19, 2012 from http://investors.csx.com/phoenix.zhtml?c=92932&p=irol-reportsannual
CSX.com. (2012). Mission Statement. CSX.com. PP. 1. Retrieved March 19, 2012 from http://www.csx.com/
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Retrieved March 19, 2012 from http://www.csx.com/index.cfm/responsibility/message-from-our-chairmain/
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Appendix
Table of Contents
CSX CORPORATION
PART II
Item 8. Financial Statements and Supplementary Data
CONSOLIDATED INCOME STATEMENTS
(Dollars in Millions, Except Per Share Amounts)
Fiscal Years
2011
2010
2009
Revenue
11,743
10,636
9,041
Expense
Labor and Fringe
3,073
2,957
2,629
Materials, Supplies and Other
2,229
2,075
1,999
Fuel
1,668
1,212
Depreciation
Equipment and Other Rents
Total Expense
8,325
7,565
6,771
Operating Income
3,418
3,071
2,270
Interest Expense
(552)
(557)
(558)
Other Income - Net (Note 10)
22
32
34
Earnings From Continuing Operations
Before Income Taxes
2,888
2,546
1,746
Income Tax Expense (Note 12)
(1,066)
(983)
(618)
Earnings From Continuing Operations
1,822
1,563
1,128
Discontinued Operations (Note 14)
15
Net Earnings
1,822
1,563
1,143
Per Common Share (Note 2)
Net Earnings Per Share, Basic
Continuing Operations
1.68
1.37
0.96
Discontinued Operations
0.01
Net Earnings
1.68
1.37
0.97
Net Earnings Per Common Share, Assuming Dilution
Continuing Operations
1.67
1.35
0.95
Discontinued Operations
0.01
Net Earnings
1.67
1.35
0.96
Average Common Shares Outstanding (Millions)
1,083
1,143
1,176
Average Common Shares Outstanding,
Assuming Dilution (Millions)
1,089
1,154
1,187
Cash Dividends Paid Per Common Share
0.45
0.33
0.29
All share and per share data were retroactively restated to reflect the three-for-one stock split effective May 31, 2011.
See accompanying Notes to Consolidated Financial Statements
57
Table of Contents
CSX CORPORATION
PART II
Item 8. Financial Statements and Supplementary Data
CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
December December
2011
2010
ASSETS
Current Assets:
Cash and Cash Equivalents (Note 1)
1,292
Short-term Investments
54
Accounts Receivable - Net (Note 1)
1,129
Materials and Supplies
Deferred Income Taxes
Other Current Assets
78
Total Current Assets
2,935
2,855
Properties
33,704
32,065
Accumulated Depreciation
(8,730)
(8,266)
Properties - Net (Note 6)
24,974
23,799
Investment in Conrail (Note 13)
Affiliates and Other Companies
Other Long-term Assets (Note 11)
Total Assets
29,473
28,141
LIABILITIES and SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable
1,147
1,046
Labor and Fringe Benefits Payable
Casualty, Environmental and Other Reserves (Note 5)
Current Maturities of Long-term Debt (Note 9)
Income and Other Taxes Payable
85
Other Current Liabilities
97
Total Current Liabilities
2,687
2,537
Casualty,...
Financial Statements and Supplementary Data
CONSOLIDATED CASH FLOW STATEMENTS
(Dollars in Millions)
Fiscal Years
2011
2010
2009
OPERATING ACTIVITIES
Net Earnings
1,822
1,563
1,143
Adjustments to Reconcile Net Earnings to Net Cash
Provided by Operating Activities:
Depreciation
Deferred Income Taxes
Contributions to Qualified Pension Plans (Note 8)
(250)
Other Operating Activities
(35)
52
(182)
Changes in Operating Assets and Liabilities:
Accounts Receivable
(73)
17
91
Other Current Assets
(23)
(22)
28
Accounts Payable
84
79
(4)
Income and Other Taxes Payable
96
28
(9)
Other Current Liabilities
35
(111)
Net Cash Provided by Operating Activities
3,491
3,261
2,039
INVESTING ACTIVITIES
Property Additions
(2,297)
(1,840)
(1,426)
Purchase of Short-term Investments
(492)
Proceeds from Property Dispositions
45
Other Investing Activities
(38)
(39)
9
Net Cash Used in Investing Activities
(2,587)
(1,771)
(1,372)
FINANCING ACTIVITIES
Long-term Debt Issued (Note 9)
1,200
Long-term Debt Repaid (Note 9)
(605)
(113)
(323)
Dividends Paid
(480)
(372)
(345)
Stock Options Exercised (Note 4)
29
42
34
Shares Repurchased
(1,564)
(1,452)
Other Financing Activities
7
(132)
(173)
Net Cash Used in Financing Activities
(1,413)
(1,227)
(307)
Net Increase (Decrease) in Cash and Cash Equivalents
(509)
CASH and CASH EQUIVALENTS
Cash and Cash Equivalents at Beginning of Period
1,292
1,029
Cash and Cash Equivalents at End of Period
1,292
1,029
SUPPLEMENTAL CASH FLOW INFORMATION
Interest Paid - Net of Amounts Capitalized
Income Taxes Paid
See accompanying Notes to Consolidated Financial Statements
Table of Contents
CSX CORPORATION
PART II
Item 8. Financial Statements and Supplementary Data
CONSOLIDATED STATEMENTS of CHANGES
IN SHAREHOLDERS' EQUITY
(Dollars in Millions)
Common
Common
Stock
Shares
and Outstanding
Paid-in
(Thousands)
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
(Loss) (a)
Noncontrolling
Interest
Total
Shareholders'
Equity
Balance December 26, 2008
1,171,578
8,315
(741)
20
7,985
Comprehensive Earnings:
Net Earnings
1,143
1,143
Other Comprehensive Loss
(68)
(68)
Total Comprehensive Earnings
1,075
Common stock dividends, $0.29 per share
(345)
(1)
(346)
Bond Conversions (Notes 2 and 9)
66
1
1
Stock Option Exercises and Other
8,736
81
(23)
(5)
53
Balance December 25, 2009
1,180,380
9,090
(809)
14
8,768
Comprehensive Earnings:
Net Earnings
1,563
1,563
Other Comprehensive Income
39
39
Total Comprehensive Earnings
1,602
Common stock dividends, $0.33 per share
(372)
(372)
Share Repurchases
(80,031
(255)
(1,197)
(1,452)
Bond Conversions (Notes 2 and 9)
2,211
19
19
Stock Option Exercises and Other
8,466
3
(1)
Balance December 31, 2010
1,111,026
9,087
(771)
14
8,700
Comprehensive Earnings:
Net Earnings
1,822
1,822
Other Comprehensive Loss
(104)
(104)
Total Comprehensive Earnings
1,718
Common stock dividends, $0.45 per share
(480)
(1)
(481)
Share Repurchases
(67,406)
(2,154)
(1,564)
Bond Conversions (Notes 2 and 9)
5
5
Stock Option Exercises and Other
4,862
90
90
Balance December 30, 2011
1,049,157
1,055
8,275
(875)
13
8,468
(a) Accumulated Other Comprehensive Loss primarily includes changes in pension and other postretirement benefit adjustments. These year-end balances shown above are net of tax. The associated taxes were $426 million, $413 million and $466 million for 2009, 2010 and 2011, respectively.
See accompanying Notes to Consolidated Financial Statements
8,468
(a) Accumulated Other Comprehensive Loss primarily includes changes in pension and other postretirement benefit adjustments. These year-end balances shown above are net of tax. The associated taxes were $426 million, $413 million and $466 million for 2009, 2010 and 2011, respectively.
See accompanying Notes to Consolidated Financial Statements
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