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Related Party Transactions | 12 Months Ended
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Dec. 26, 2014
Related Party Transactions [Abstract] |
Related Party Transactions | Related Party Transactions Through a limited liability company, CSX and Norfolk Southern Corporation (“NS”) jointly own Conrail. CSX has a 42% economic interest and 50% voting interest in the jointly-owned entity, and NS has the remainder of the economic and voting interests. Pursuant to the Investments-Equity Method and Joint Venture Topic in the ASC, CSX applies the equity method of accounting to its investment in Conrail. Conrail owns rail infrastructure and operates for the joint benefit of CSX and NS. This is known as the shared asset area. Conrail charges fees for right-of-way usage, equipment rentals and transportation, switching and terminal service charges in the shared asset area. These expenses are included in materials, supplies and other on the consolidated income statements. Future minimum lease payments due to Conrail under the shared asset area agreements are as follows:
(Dollars in Millions) | Conrail Shared
Years | Asset Agreement
2015 | $ | 26 |
2016 | 26 |
2017 | 26 |
2018 | 26 |
2019 | 26 |
Thereafter | 124 |
Total | $ | 254 |
Also, included in materials, supplies and other are CSX’s 42% share of Conrail’s income and its amortization of the fair value write-up arising from the acquisition of Conrail and certain other adjustments. The amortization primarily represents the additional after-tax depreciation expense related to the write-up of Conrail’s fixed assets when the original purchase price, from the 1997 acquisition of Conrail, was allocated based on fair value. This write-up of fixed assets resulted in a difference between CSX's investment in Conrail and its share of Conrail's underlying net equity, which is $355 million as of December 2014. NOTE 12. Related Party Transactions, continued The following table details the related Conrail amounts included in materials, supplies and other in the Company’s consolidated income statements:
| Fiscal Years
(Dollars in Millions) | 2014 |  | 2013 |  | 2012
Rents, Fees and Services | $ | 124 |  |  | $ | 115 |  |  | $ | 139 |
Purchase Price Amortization and Other | 4 |  |  | 4 |  |  | 4 |
Equity earnings of Conrail | (31 | ) |  | (35 | ) |  | (26 | )
Total Conrail Rents, Fees and Services | $ | 97 |  |  | $ | 84 |  |  | $ | 117 |
As required by the Related Party Disclosures Topic in the ASC, the Company has identified amounts below owed to Conrail, or its subsidiaries, representing liabilities under the operating, equipment and shared area agreements with Conrail. The Company also executed two promissory notes with a subsidiary of Conrail which were included in long-term debt on the consolidated balance sheets. Interest expense from these promissory notes was $3 million for 2014 and $4 million for 2013 and 2012, respectively.
| December |  | December
(Dollars in Millions) | 2014 |  | 2013
Balance Sheet Information: |  |  |
CSX Payable to Conrail | $ | 54 |  |  | $ | 172 |
Promissory Notes Payable to Conrail Subsidiary (a) |  |  |
2.89% CSX Promissory Note due October 2044 (a) | 73 |  |  | — |
2.89% CSXT Promissory Note due October 2044 (a) | 151 |  |  | — |
4.40% CSX Promissory Note due October 2035 | — |  |  | 73 |
4.52% CSXT Promissory Note due March 2035 | — |  |  | 23 |
(a) Promissory notes payable to Conrail are included on the consolidated balance sheet of CSX as long-term debt. In October 2014, the Company converted its existing short term payable balance of approximately $125 million for operation of the shared asset area as well as its $23 million, 4.52% note due 2035 and its $73 million, 4.40% note due 2035 plus accrued interest of $3 million, into $224 million, 2.89% notes due 2044. The transaction is non-cash in nature.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864 + Details
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