XML 40 R21.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Earnings before income taxes of $5.4 billion, $5.0 billion and $3.6 billion for years ended 2022, 2021 and 2020, respectively, represent earnings from domestic operations. The breakdown of income tax expense between current and deferred is as follows:
| Years Ended
(Dollars in Millions) | 2022 |  | 2021 |  | 2020
Current: |  |  |
Federal | $ | 928 |  |  | $ | 827 |  |  | $ | 559 |
State | 203 |  |  | 176 |  |  | 123 |
Subtotal Current | $ | 1,131 |  |  | $ | 1,003 |  |  | $ | 682 |
Deferred: |  |  |  |  |
Federal | 166 |  |  | 166 |  |  | 149 |
State | (49) |  |  | 1 |  |  | 31 |
Subtotal Deferred | $ | 117 |  |  | $ | 167 |  |  | $ | 180 |
Total Income Tax Expense | $ | 1,248 |  |  | $ | 1,170 |  |  | $ | 862 |
The Company recorded a 2022 income tax benefit of $78 million primarily as a result of state legislative changes and a change in the valuation of deferred taxes as a result of filing the 2021 tax returns. In 2021, the Company recorded an income tax benefit of $48 million primarily as a result of favorable state legislative changes, additional tax benefits associated with the vesting of share-based awards and adjustments to deferred taxes as a result of filing the 2020 state tax returns. In 2020, the Company recorded an income tax benefit of $30 million primarily as a result of the additional tax benefit associated with vesting of share-based awards and the resolution of certain tax matters. Income tax expense reconciled to the tax computed at statutory rates is presented in the following table.
| Years Ended
(Dollars In Millions) | 2022 |  | 2021 |  | 2020
Federal Income Taxes | $ | 1,137 |  |  | 21.0 | % |  | $ | 1,040 |  |  | 21.0 | % |  | $ | 762 |  |  | 21.0 | %
State Income Taxes | 121 |  |  | 2.2 | % |  | 139 |  |  | 2.8 | % |  | 117 |  |  | 3.2 | %
Other | (10) |  |  | (0.1) | % |  | (9) |  |  | (0.2) | % |  | (17) |  |  | (0.4) | %
Income Tax Expense/ Rate | $ | 1,248 |  |  | 23.1 | % |  | $ | 1,170 |  |  | 23.6 | % |  | $ | 862 |  |  | 23.8 | %
NOTE 12. Income Taxes, continued The primary factors in the change in year-end net deferred income tax liability balances include the annual provision for deferred income tax expense and accumulated other comprehensive income/loss. The significant components of deferred income tax assets and liabilities include:
| 2022 |  | 2021
(Dollars in Millions) | Assets |  | Liabilities |  | Assets |  | Liabilities
Other Employee Benefit Plans | $ | 105 |  |  | $ | — |  |  | $ | 106 |  |  | $ | — |
Accelerated Depreciation | — |  |  | 7,600 |  |  | — |  |  | 7,366 |
Other | 553 |  |  | 627 |  |  | 499 |  |  | 622 |
Total | $ | 658 |  |  | $ | 8,227 |  |  | $ | 605 |  |  | $ | 7,988 |
Net Deferred Income Tax Liabilities |  |  | $ | 7,569 |  |  |  |  | $ | 7,383 |
The Company files a consolidated federal income tax return, which includes its principal domestic subsidiaries. CSX and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. CSX participated in a contemporaneous IRS audit of tax years 2022 and 2021. Federal examinations of original federal income tax returns for all years through 2020 are resolved. As of December 2022 and 2021, the Company had approximately $18 million and $18 million, respectively, of total unrecognized tax benefits as a result of uncertain tax positions. Net tax benefits of $14 million and $15 million as of December 2022 and 2021, respectively, could favorably impact the effective income tax rate in each year. The Company does not expect that unrecognized tax benefits as of December 2022 for various state and federal income tax matters will significantly change over the next 12 months. The final outcome of these uncertain tax positions is not yet determinable. There were no material changes to the total gross unrecognized tax benefits and prior year audit resolutions of the Company during the year ended December 2022. CSX’s continuing practice is to recognize net interest and penalties related to income tax matters in income tax expense. Accrued interest and penalties were not material as of December 2022 or 2021. Additionally, expenses from changes to the reserves for interest and penalties were not material in 2022, 2021 or 2020

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

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration