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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 1-3359
 
 
CSX TRANSPORTATION, INC.
(Exact name of registrant as specified in its charter)
 
Virginia
   
54-6000720
(State or other jurisdiction of
incorporation or organization)
   
(I.R.S. Employer
Identification No.)
 
500 Water Street, Jacksonville, Florida
   
32202
(Address of principal executive offices)
   
(Zip Code)
 
(904) 359-3100
(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: 9,061,038 shares.
 
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H (1) (a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.
 

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Table of Contents
 
CSX TRANSPORTATION, INC.
 
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
  
13
  
17
PART II.    OTHER INFORMATION
     
  
18
  
18

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Table of Contents
 
CSX TRANSPORTATION, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF EARNINGS
(Millions of Dollars)
 
    
(Unaudited)
    
Quarter Ended
   
Six Months Ended
    
June 28, 2002
     
June 29, 2001
   
June 28, 2002
   
June 29, 2001
OPERATING REVENUE
                              
Merchandise
   
$
893
 
   
$
881
   
$
1,761
   
$
1,771
Automotive
   
 
231
 
   
 
213
   
 
431
   
 
407
Coal, Coke & Iron Ore
   
 
398
 
   
 
436
   
 
795
   
 
866
Other
   
 
16
 
   
 
26
   
 
37
   
 
44
    
  
  
  
Total
   
 
1,538
 
   
 
1,556
   
 
3,024
   
 
3,088
    
  
  
  
OPERATING EXPENSE
                              
Labor and Fringe
   
 
605
 
   
 
618
   
 
1,219
   
 
1,248
Materials, Supplies and Other
   
 
285
 
   
 
283
   
 
571
   
 
555
Conrail Operating Fee, Rent and Services
   
 
86
 
   
 
89
   
 
174
   
 
177
Related Party Service Fees
   
 
68
 
   
 
48
   
 
147
   
 
96
Equipment Rent
   
 
103
 
   
 
104
   
 
199
   
 
215
Depreciation
   
 
131
 
   
 
131
   
 
261
   
 
262
Fuel
   
 
112
 
   
 
131
   
 
216
   
 
285
    
  
  
  
Total
   
 
1,390
 
   
 
1,404
   
 
2,787
   
 
2,838
    
  
  
  
OPERATING INCOME
   
 
148
 
   
 
152
   
 
237
   
 
250
Other Income (Expense)
   
 
(17
)
   
 
18
   
 
1
   
 
5
Interest Expense
   
 
28
 
   
 
32
   
 
58
   
 
67
    
  
  
  
EARNINGS BEFORE INCOME TAXES
   
 
103
 
   
 
138
   
 
180
   
 
188
Income Tax Expense
   
 
39
 
   
 
54
   
 
69
   
 
73
    
  
  
  
NET EARNINGS
   
$
64
 
   
$
84
   
$
111
   
$
115
    
  
  
  
 
 
See accompanying Notes to Consolidated Financial Statements.

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Table of Contents
 
CSX TRANSPORTATION, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions of Dollars)
 
    
(Unaudited)
  
    
Six Months Ended
  
    
June 28, 2002
     
June 29, 2001
  
OPERATING ACTIVITIES
                  
Net Earnings
   
$
111
 
   
$
115
 
Adjustments to Reconcile Net Earnings to Net Cash Provided:
                  
Depreciation
   
 
261
 
   
 
262
 
Deferred Income Taxes
   
 
68
 
   
 
57
 
Other Operating Activities
   
 
8
 
   
 
4
 
Changes in Operating Assets and Liabilities:
                  
Accounts and Notes Receivable
   
 
46
 
   
 
(54
)
Sale of Accounts Receivable, Net
   
 
19
 
   
 
49
 
Other Current Assets
   
 
(34
)
   
 
(15
)
Accounts Payable
   
 
(66
)
   
 
8
 
Other Current Liabilities
   
 
(12
)
   
 
19
 
    
  
Net Cash Provided by Operating Activities
   
 
401
 
   
 
445
 
    
  
INVESTING ACTIVITIES
                  
Property Additions
   
 
(352
)
   
 
(377
)
Short-term Investments
   
 
137
 
   
 
—  
 
Other Investing Activities
   
 
(2
)
   
 
6
 
    
  
Net Cash Used by Investing Activities
   
 
(217
)
   
 
(371
)
    
  
FINANCING ACTIVITIES
                  
Long-term Debt Issued
   
 
1
 
   
 
—  
 
Long-term Debt Repaid
   
 
(150
)
   
 
(118
)
Advances from CSX
   
 
79
 
   
 
118
 
Dividends Paid
   
 
(100
)
   
 
(106
)
Other Financing Activities
   
 
1
 
   
 
4
 
    
  
Net Cash Used by Financing Activities
   
 
(169
)
   
 
(102
)
    
  
Net Increase (Decrease) in Cash and Cash Equivalents
   
 
15
 
   
 
(28
)
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS
                  
Cash and Cash Equivalents at Beginning of Period
   
 
27
 
   
 
28
 
    
  
Cash and Cash Equivalents at End of Period
   
 
42
 
   
 
—  
 
Short-term Investments at End of Period
   
 
83
 
   
 
—  
 
    
  
Cash, Cash Equivalents and Short-term Investments at End of Period
   
$
125
 
   
$
—  
 
    
  
 
See accompanying Notes to Consolidated Financial Statements.

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Table of Contents
CSX TRANSPORTATION, INC. 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
   
$
125
 
   
$
247
 
Accounts Receivable, Net
   
 
192
 
   
 
289
 
Notes Receivable
   
 
47
 
   
 
62
 
Materials and Supplies
   
 
190
 
   
 
181
 
Deferred Income Taxes
   
 
101
 
   
 
142
 
Income Taxes Receivable
   
 
78
 
   
 
78
 
Other Current Assets
   
 
52
 
   
 
32
 
    
  
Total Current Assets
   
 
785
 
   
 
1,031
 
Properties
   
 
16,877
 
   
 
16,644
 
Accumulated Depreciation
   
 
(4,580
)
   
 
(4,427
)
    
  
Properties—Net
   
 
12,297
 
   
 
12,217
 
Affiliates and Other Companies
   
 
206
 
   
 
198
 
Other Long-term Assets
   
 
567
 
   
 
567
 
    
  
Total Assets
   
$
13,855
 
   
$
14,013
 
    
  
LIABILITIES
                  
Current Liabilities
                  
Accounts Payable
   
$
661
 
   
$
736
 
Labor and Fringe Benefits Payable
   
 
312
 
   
 
320
 
Casualty, Environmental and Other Reserves
   
 
176
 
   
 
178
 
Current Maturities of Long-term Debt
   
 
205
 
   
 
170
 
Income and Other Taxes Payable
   
 
205
 
   
 
192
 
Due to Parent Company
   
 
1,175
 
   
 
1,107
 
Due to Affiliate
   
 
197
 
   
 
209
 
Other Current Liabilities
   
 
144
 
   
 
196
 
    
  
Total Current Liabilities
   
 
3,075
 
   
 
3,108
 
Casualty, Environmental and Other Reserves
   
 
515
 
   
 
532
 
Long-term Debt
   
 
894
 
   
 
1,033
 
Deferred Income Taxes
   
 
3,277