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Table of Contents
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
 
 
FORM 10-Q
 
x
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    
 
SECURITIES EXCHANGE ACT OF 1934
 
    
 
  For the quarter ended June 28, 2002
 
OR
 
¨
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    
 
SECURITIES EXCHANGE ACT OF 1934
 
    
 
  For the transition period from                      to                     
 
Commission File Number 1-8022
 
 
CSX CORPORATION
(Exact name of registrant as specified in its charter)
 
Virginia
  
62-1051971
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
 
901 East Cary Street, Richmond, Virginia
  
23219-4031
(Address of principal executive offices)
  
(Zip Code)
 
(804) 782-1400
(Registrant’s telephone number, including area code)
 
No Change
(Former name, former address and former fiscal year, if changed since last report.)
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No  ¨
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of June 28, 2002: 212,886,212 shares.
 

Table of Contents
CSX CORPORATION
 
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 28, 2002
 
INDEX
 
           
Page Number
PART I.    FINANCIAL INFORMATION
       
Item 1:
   
Financial Statements
       
         
3
         
4
         
5
         
6
Item 2:
        
25
Item 3:
        
38
PART II.    OTHER INFORMATION
       
Item 4.
        
39
Item 6.
        
40
    
40

2

Table of Contents
CSX CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF EARNINGS
(Millions of Dollars, Except Per Share Amounts)
 
    
(Unaudited)
    
Quarter Ended
   
Six Months Ended
    
June 28,
2002
   
June 29,
2001
   
June 28,
2002
     
June 29,
2001
Operating Revenue
   
$
2,073
   
$
2,057
   
$
4,037
 
   
$
4,082
Operating Expense
   
 
1,752
   
 
1,792
   
 
3,504
 
   
 
3,628
    
  
  
  
Operating Income
   
 
321
   
 
265
   
 
533
 
   
 
454
Other Income
   
 
4
   
 
37
   
 
13
 
   
 
8
Interest Expense
   
 
116
   
 
135
   
 
230
 
   
 
268
    
  
  
  
Earnings before Income Taxes and Cumulative Effect of Accounting Change
   
 
209
   
 
167
   
 
316
 
   
 
194
Income Tax Expense
   
 
74
   
 
59
   
 
113
 
   
 
66
    
  
  
  
Earnings before Cumulative Effect of Accounting Change
   
 
135
   
 
108
   
 
203
 
   
 
128
Cumulative Effect of Accounting Change—Net of Tax
   
 
—  
   
 
—  
   
 
(43
)
   
 
—  
    
  
  
  
Net Earnings
   
$
135
   
$
108
   
$
160
 
   
$
128
    
  
  
  
Earnings Per Share:
                              
Before Cumulative Effect of Accounting Change
   
$
0.63
   
$
0.51
   
$
0.95
 
   
$
0.60
Cumulative Effect of Accounting Change
   
 
—  
   
 
—  
   
 
(0.20
)
   
 
—  
    
  
  
  
Net Earnings
   
$
0.63
   
$
0.51
   
$
0.75
 
   
$
0.60
    
  
  
  
Earnings Per Share, Assuming Dilution:
                              
Before Cumulative Effect of Accounting Change
   
$
0.63
   
$
0.51
   
$
0.95
 
   
$
0.60
Cumulative Effect of Accounting Change
   
 
—  
   
 
—  
   
 
(0.20
)
   
 
—  
    
  
  
  
Net Earnings
   
$
0.63
   
$
0.51
   
$
0.75
 
   
$
0.60
    
  
  
  
Average Common Shares Outstanding (Thousands)
   
 
212,555
   
 
211,687
   
 
212,303
 
   
 
211,491
    
  
  
  
Average Common Shares Outstanding Assuming Dilution (Thousands)
   
 
213,541
   
 
212,464
   
 
213,364
 
   
 
212,180
    
  
  
  
Cash Dividends Paid Per Common Share
   
$
0.10
   
$
0.30
   
$
0.20
 
   
$
0.60
    
  
  
  
 
 
See accompanying Notes to Consolidated Financial Statements.

3

Table of Contents
CSX CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions of Dollars)
 
    
(Unaudited)
  
    
Six Months Ended
  
    
June 28,
2002
     
June 29,
2001
  
OPERATING ACTIVITIES
                  
Net Earnings
   
$
160
 
   
$
128
 
Adjustments to Reconcile Net Earnings to Net Cash Provided:
                  
Cumulative Effect of Accounting Change
   
 
43
 
   
 
—  
 
Depreciation
   
 
312
 
   
 
312
 
Deferred Income Taxes
   
 
50
 
   
 
32
 
Equity in Conrail Earnings—Net
   
 
(8
)
   
 
(9
)
Other Operating Activities
   
 
(5
)
   
 
(1
)
Changes in Operating Assets and Liabilities:
                  
Accounts Receivable
   
 
17
 
   
 
(33
)
Other Current Assets
   
 
(34
)
   
 
(15
)
Accounts Payable
   
 
(54
)
   
 
(71
)
Other Current Liabilities
   
 
30
 
   
 
(78
)
    
  
Net Cash Provided by Operating Activities
   
 
511
 
   
 
265
 
    
  
INVESTING ACTIVITIES
                  
Property Additions
   
 
(431
)
   
 
(420
)
Short-term Investments—Net
   
 
(2
)
   
 
11
 
Other Investing Activities
   
 
4
 
   
 
(8
)
    
  
Net Cash Used by Investing Activities
   
 
(429
)
   
 
(417
)
    
  
FINANCING ACTIVITIES
                  
Short-term Debt—Net
   
 
576
 
   
 
(228
)
Long-term Debt Issued
   
 
474
 
   
 
500
 
Long-term Debt Repaid
   
 
(991
)
   
 
(118
)
Dividends Paid
   
 
(43
)
   
 
(128
)
Other Financing Activities
   
 
16
 
   
 
8
 
    
  
Net Cash Provided by Financing Activities
   
 
32
 
   
 
34
 
    
  
Net Increase (Decrease) in Cash and Cash Equivalents
   
 
114
 
   
 
(118
)
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
                  
Cash and Cash Equivalents at Beginning of Period
   
 
137
 
   
 
260
 
    
  
Cash and Cash Equivalents at End of Period
   
 
251
 
   
 
142
 
Short-term Investments at End of Period
   
 
480
 
   
 
414
 
    
  
Cash, Cash Equivalents and Short-term Investments at End of Period
   
$
731
 
   
$
556
 
    
  
 
 
See accompanying Notes to Consolidated Financial Statements.

4

Table of Contents
CSX CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Millions of Dollars)
 
    
(Unaudited)
         
    
June 28,
2002
     
December 28,
2001
  
ASSETS
                  
Current Assets
                  
Cash, Cash Equivalents and Short-term Investments
   
$
731
 
   
$
618
 
Accounts Receivable, Net
   
 
828
 
   
 
878
 
Materials and Supplies
   
 
220
 
   
 
206
 
Deferred Income Taxes
   
 
122
 
   
 
162
 
Other Current Assets
   
 
190
 
   
 
210
 
    
  
Total Current Assets
   
 
2,091
 
   
 
2,074
 
Properties
   
 
18,416
 
   
 
18,151
 
Accumulated Depreciation
   
 
(5,348
)
   
 
(5,179
)
    
  
Properties-Net
   
 
13,068
 
   
 
12,972
 
Investment in Conrail
   
 
4,663
 
   
 
4,655
 
Affiliates and Other Companies
   
 
410
 
   
 
382
 
Other Long-term Assets
   
 
688
 
   
 
718
 
    
  
Total Assets
   
$
20,920
 
   
$
20,801
 
    
  
LIABILITIES
                  
Current Liabilities
                  
Accounts Payable
   
$
918
 
   
$
966
 
Labor and Fringe Benefits Payable
   
 
413
 
   
 
418
 
Casualty, Environmental and Other Reserves
   
 
245
 
   
 
250
 
Current Maturities of Long-term Debt
   
 
326
 
   
 
1,044
 
Short-term Debt
   
 
578
 
   
 
225
 </