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Investment in Affiliates and Related-Party Transactions | 12 Months Ended
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Dec. 31, 2023
Related Party Transactions [Abstract] |
Investment in Affiliates and Related-Party Transactions | Investment in Affiliates and Related-Party Transactions CSX's investments in affiliates are included on the consolidated balance sheet as investments in affiliates and other companies.
| December |  | December
(Dollars in Millions) | 2023 |  | 2022
Conrail | $ | 1,175 |  |  | $ | 1,124 |
TTX | 961 |  |  | 914 |
Other Equity Method and Cost Method Investments | 261 |  |  | 254 |
Total | $ | 2,397 |  |  | $ | 2,292 |
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. 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 purchased services 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
2024 | $ | 32 |
2025 | 32 |
2026 | 32 |
2027 | 32 |
2028 | 32 |
Thereafter | 13 |
Total | $ | 173 |
Also, included in equity earnings of affiliates 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 $323 million as of December 2023. NOTE 15. Investment in Affiliates and Related-Party Transactions, continued The following table discloses amounts related to Conrail. All amounts in the table below are included in purchased services and other expenses on the Company’s consolidated income statements.
| Years Ended
(Dollars in Millions) | 2023 |  | 2022 |  | 2021
Rents, Fees and Services | $ | 132 |  |  | $ | 130 |  |  | $ | 128 |
Purchase Price Amortization and Other | 4 |  |  | 4 |  |  | 4 |
Equity Earnings of Conrail | (54) |  |  | (44) |  |  | (44) |
Total Conrail Expense | $ | 82 |  |  | $ | 90 |  |  | $ | 88 |
As required by the Related Party Disclosures Topic in the ASC, the Company has disclosed 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. In December 2020, the Company completed a non-cash conversion of $224 million of 2.89% notes due 2044 as well as its existing payable balance of approximately $217 million into new notes. The new notes for operation of the shared asset area are $441 million, 1.31% notes due 2050. Interest expense from these promissory notes was $6 million in each 2023, 2022 and 2021.
| December |  | December
(Dollars in Millions) | 2023 |  | 2022
Balance Sheet Information: |  |  |
CSX Accounts Payable to Conrail | $ | 154 |  |  | $ | 136 |
Promissory Notes Payable to Conrail Subsidiary |  |  |
1.31% CSX Promissory Note due December 2050 | 73 |  |  | 73 |
1.31% CSXT Promissory Note due December 2050 | 368 |  |  | 368 |
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. Pursuant to the Investments - Equity Method Topic in the ASC, CSX applies the equity method of accounting to its investment in TTX. As part of the Pan Am acquisition in June 2022, CSX acquired an immaterial amount of TTX stock, which was subsequently repurchased by TTX in December 2022. NOTE 15. Investment in Affiliates and Related-Party Transactions, continued As required by the Related Party Disclosures Topic in the ASC, the following table discloses amounts related to TTX. Car hire rents and equity earnings are included in equipment and other rents expense on the Company’s consolidated income statement.
| Years Ended
(Dollars in Millions) | 2023 |  | 2022 |  | 2021
Income Statement Information: |  |  |  |  |
Car Hire Rents | $ | 249 |  |  | $ | 241 |  |  | $ | 221 |
Equity Earnings of TTX | (49) |  |  | (51) |  |  | (52) |
Total TTX Expense | $ | 200 |  |  | $ | 190 |  |  | $ | 169 |
Also included below is balance sheet information related to CSX's payable to TTX, which represents car rental liabilities.
(Dollars in Millions) | December |  | December
Balance Sheet Information: | 2023 |  | 2022
CSX Payable to TTX | $ | 43 |  |  | $ | 38 |

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