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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 September 27, 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 September 27, 2002: 213,030,402 shares.
 

Table of Contents
 
CSX CORPORATION
 
FORM 10-Q
For The Quarterly Period Ended September 27, 2002
 
INDEX
 
    
Page Number
PART I.    FINANCIAL INFORMATION
     
Item 1:
   
Financial Statements
     
    
    Quarters and Nine Months Ended September 27, 2002 and September 28, 2001
   
  3
    
    Nine Months Ended September 27, 2002 and September 28, 2001
   
  4
    
    At September 27, 2002 (Unaudited) and December 28, 2001
   
  5
       
  6
Item 2:
      
24
Item 3:
      
38
Item 4:
      
38
PART II.    OTHER INFORMATION
     
Item 6.
      
39
  
39
  
40

2

Table of Contents
 
CSX CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF EARNINGS
(Millions of Dollars, Except Per Share Amounts)
 
    
Quarter Ended
   
Nine Months Ended
    
September 27,
2002
   
September 28,
2001
   
September 27,
2002
     
September 28,
2001
    
(Unaudited)
Operating Revenue
   
$
2,055
   
$
2,019
   
$
6,092
 
   
$
6,101
Operating Expense
   
 
1,779
   
 
1,737
   
 
5,283
 
   
 
5,365
    
  
  
  
Operating Income
   
 
276
   
 
282
   
 
809
 
   
 
736
Other Income
   
 
28
   
 
4
   
 
41
 
   
 
12
Interest Expense
   
 
108
   
 
129
   
 
338
 
   
 
397
    
  
  
  
Earnings before Income Taxes and Cumulative Effect of Accounting Change
   
 
196
   
 
157
   
 
512
 
   
 
351
Income Tax Expense
   
 
69
   
 
57
   
 
182
 
   
 
123
    
  
  
  
Earnings before Cumulative Effect of Accounting Change
   
 
127
   
 
100
   
 
330
 
   
 
228
Cumulative Effect of Accounting Change—Net of Tax
   
 
—  
   
 
—  
   
 
(43
)
   
 
—  
    
  
  
  
Net Earnings
   
$
127
   
$
100
   
$
287
 
   
$
228
    
  
  
  
Earnings Per Share:
                              
Before Cumulative Effect of Accounting Change
   
$
0.60
   
$
0.47
   
$
1.55
 
   
$
1.08
Cumulative Effect of Accounting Change
   
 
—  
   
 
—  
   
 
(0.20
)
   
 
—  
    
  
  
  
Net Earnings
   
$
0.60
   
$
0.47
   
$
1.35
 
   
$
1.08
    
  
  
  
Earnings Per Share, Assuming Dilution:
                              
Before Cumulative Effect of Accounting Change
   
$
0.60
   
$
0.47
   
$
1.55
 
   
$
1.07
Cumulative Effect of Accounting Change
   
 
—  
   
 
—  
   
 
(0.20
)
   
 
—  
    
  
  
  
Net Earnings
   
$
0.60
   
$
0.47
   
$
1.35
 
   
$
1.07
    
  
  
  
Average Common Shares Outstanding (Thousands)
   
 
213,041
   
 
211,871
   
 
212,548
 
   
 
211,618
    
  
  
  
Average Common Shares Outstanding Assuming Dilution (Thousands)
   
 
213,633
   
 
212,579
   
 
213,453
 
   
 
212,312
    
  
  
  
Cash Dividends Paid Per Common Share
   
$
0.10
   
$
0.10
   
$
0.30
 
   
$
0.70
    
  
  
  
 
See accompanying Notes to Consolidated Financial Statements.

3

Table of Contents
 
CSX CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions of Dollars)
 
    
Nine Months Ended
  
    
September 27,
2002
       
September 28,
2001
  
    
(Unaudited)
  
OPERATING ACTIVITIES
                    
Net Earnings
   
$
287
 
     
$
228
 
Adjustments to Reconcile Net Earnings to Net Cash Provided:
                    
Cumulative Effect of Accounting Change
   
 
43
 
     
 
—  
 
Depreciation
   
 
477
 
     
 
469
 
Deferred Income Taxes
   
 
102
 
     
 
76
 
Equity in Conrail Earnings—Net
   
 
(12
)
     
 
(10
)
Other Operating Activities
   
 
(5
)
     
 
(61
)
Changes in Operating Assets and Liabilities:
                    
Accounts Receivable
   
 
(133
)
     
 
15
 
Other Current Assets
   
 
(11
)
     
 
(11
)
Accounts Payable
   
 
(66
)
     
 
(74
)
Other Current Liabilities
   
 
11
 
     
 
(193
)
    
    
Net Cash Provided by Operating Activities
   
 
693
 
     
 
439
 
    
    
INVESTING ACTIVITIES
                    
Property Additions
   
 
(743
)
     
 
(628
)
Short-term Investments—Net
   
 
177
 
     
 
(35
)
Other Investing Activities
   
 
(58
)
     
 
52
 
    
    
Net Cash Used by Investing Activities
   
 
(624
)
     
 
(611
)
    
    
FINANCING ACTIVITIES
                    
Short-term Debt—Net
   
 
571
 
     
 
(127
)
Long-term Debt Issued
   
 
519
 
     
 
500
 
Long-term Debt Repaid
   
 
(1,113
)
     
 
(195
)
Dividends Paid
   
 
(65
)
     
 
(149
)
Other Financing Activities
   
 
2
 
     
 
15
 
    
    
Net Cash (Used) Provided by Financing Activities
   
 
(86
)
     
 
44
 
    
    
Net Decrease in Cash and Cash Equivalents
   
 
(17
)
     
 
(128
)
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
                    
Cash and Cash Equivalents at Beginning of Period
   
 
137
 
     
 
261
 
    
    
Cash and Cash Equivalents at End of Period
   
 
120
 
     
 
133
 
Short-term Investments at End of Period
   
 
302
 
     
 
459
 
    
    
Cash, Cash Equivalents and Short-term Investments at End of Period
   
$
422
 
     
$
592
 
    
    
 
See accompanying Notes to Consolidated Financial Statements.

4

Table of Contents
 
CSX CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Millions of Dollars)
 
    
September 27,
2002
     
December 28,
2001
  
    
(Unaudited)
         
ASSETS
                  
Current Assets
                  
Cash, Cash Equivalents and Short-term Investments
   
$
422
 
   
$
618
 
Accounts Receivable, Net
   
 
955
 
   
 
878
 
Materials and Supplies
   
 
212
 
   
 
206
 
Deferred Income Taxes
   
 
122
 
   
 
162
 
Other Current Assets
   
 
199
 
   
 
210
 
    
  
Total Current Assets
   
 
1,910
 
   
 
2,074
 
Properties
   
 
18,531
 
   
 
18,151
 
Accumulated Depreciation
   
 
(5,322
)
   
 
(5,179
)
    
  
Properties—Net
   
 
13,209
 
   
 
12,972
 
Investment in Conrail
   
 
4,667
 
   
 
4,655
 
Affiliates and Other Companies
   
 
462
 
   
 
382
 
Other Long-term Assets
   
 
777
 
   
 
718
 
    
  
Total Assets
   
$
21,025
 
   
$
20,801
 
    
  
LIABILITIES
                  
Current Liabilities
                  
Accounts Payable
   
$
893
 
   
$
966
 
Labor and Fringe Benefits Payable
   
 
437
 
   
 
418
 
Casualty, Environmental and Other Reserves
   
 
248
 
  &