XML 38 R20.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Related Parties and Affiliates | 12 Months Ended
--- | ---
Dec. 31, 2018
Related Party Transactions [Abstract] |
Related Parties and Affiliates | Related Parties and Affiliates Conrail 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. CSX's investment of $943 million is included on the consolidated balance sheet as investment in Conrail. 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 payments due to Conrail under the shared asset area agreements are shown in the table below.
(Dollars in Millions) | Conrail Shared
Years | Asset Agreement
2019 | $ | 27 |
2020 | 27 |
2021 | 27 |
2022 | 27 |
2023 | 27 |
Thereafter | 20 |
Total | $ | 155 |
Also, included in equity earnings of affiliates are CSX’s 42 percent 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 $343 million as of December 2018. The following table discloses amounts related to Conrail. Purchase price amortization and equity earnings are included in equity earnings of affiliates and all other amounts in the table are included in materials, supplies and other expenses on the Company’s consolidated income statements.
| Fiscal Years
(Dollars in Millions) | 2018 |  | 2017 |  | 2016
Rents, fees and services | $ | 117 |  |  | $ | 120 |  |  | $ | 114 |
Purchase price amortization and other | 4 |  |  | 4 |  |  | 4 |
Equity earnings of Conrail | (43 | ) |  | (58 | ) |  | (37 | )
Total Conrail Expense | $ | 78 |  |  | $ | 66 |  |  | $ | 81 |
NOTE 12. Related Parties and Affiliates, continued 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. In 2014, the Company 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 $6 million in each 2018, 2017 and 2016.
| December |  | December
(Dollars in Millions) | 2018 |  | 2017
Balance Sheet Information: |  |  |
CSX accounts payable to Conrail | $ | 153 |  |  | $ | 123 |
Promissory notes payable to Conrail subsidiary |  |  |
2.89% CSX promissory note due October 2044 | 73 |  |  | 73 |
2.89% CSXT promissory note due October 2044 | 151 |  |  | 151 |
TTX Company TTX Company ("TTX") is a privately-held corporation engaged in the business of providing its owner-railroads with standardized fleets of intermodal, automotive and general use railcars at time and mileage rates. CSX owns about 20 percent of TTX's common stock, and the remaining is owned by the other leading North American railroads and their affiliates. CSX's investment in TTX is $688 million and is included in affiliates and other companies in the consolidated balance sheet. Pursuant to the Investments-Equity Method topic in the ASC, CSX applies the equity method of accounting to its investment in TTX. As required by the Related Party Disclosures Topic in the ASC, the following table discloses amounts related to TTX. Car hire rents are included in equipment and other rents expense and equity earnings are included in equity earnings of affiliates in the Company’s consolidated income statements. Also included below is balance sheet information related to CSX's payable to TTX, which represents car rental liabilities.
| Fiscal Years
(Dollars in Millions) | 2018 |  | 2017 |  | 2016
Income statement information: |  |  |  |  |
Car hire rents | $ | 223 |  |  | $ | 237 |  |  | $ | 233 |
Equity earnings of TTX | (60 | ) |  | (157 | ) |  | (26 | )
Total TTX expense | $ | 163 |  |  | $ | 80 |  |  | $ | 207 |
| December |  | December |
Balance sheet information: | 2018 |  | 2017 |
CSX payable to TTX | $ | 36 |  |  | $ | 43 |  |
NOTE 12. Related Parties and Affiliates, continued Tax Reform Effect on Equity Earnings of Affiliates Due to the enactment of tax reform, the Company recognized a benefit in 2017 of $142 million, or $0.10 per share after-tax, in its equity earnings of affiliates. This benefit was primarily the result of the Company's affiliates (primarily TTX and Conrail) revaluing their deferred tax liabilities to reflect the lower federal corporate tax rate, which favorably impacted their net earnings for 2017. (See additional discussion of tax reform in Note 11, Income Taxes.)

X
- References No definition available. + Details
Name: | us-gaap_RelatedPartyTransactionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
Name: | us-gaap_RelatedPartyTransactionsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration