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Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

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Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

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Net Earnings (USD, millions)

Depreciation and Amortization (USD, millions)

Deferred Income Taxes (USD, millions)

Other Operating Activities (USD, millions)

Net Cash Provided by Operating Activities (USD, millions)

Property Additions (USD, millions)

Proceeds from Sales of Short-term Investments (USD, millions)

Proceeds and Advances from Property Dispositions (USD, millions)

Business Acquisition, Net of Cash Acquired (USD, millions)

Other Investing Activities (USD, millions)

Net Cash Used In Investing Activities (USD, millions)

Shares Repurchased (USD, millions)

Dividends Paid (USD, millions)

Long-term Debt Repaid (USD, millions)

Long-term Debt Issued (USD, millions)

Other Financing Activities (USD, millions)

Net Cash Used in Financing Activities (USD, millions)

Net Increase (Decrease) in Cash and Cash Equivalents (USD, millions)

Cash and Cash Equivalents at Beginning of Period (USD, millions)

Cash and Cash Equivalents at End of Period (USD, millions)

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Revenue (USD, millions)

Labor and Fringe Expense (USD, millions)

Purchased Services and Other Expense (USD, millions)

Depreciation and Amortization Expense (USD, millions)

Total Expense (USD, millions)

Operating Income (USD, millions)

Interest Expense (USD, millions)

Other Income - Net (USD, millions)

Earnings Before Income Taxes (USD, millions)

Income Tax Expense (USD, millions)

Net Earnings Per Share, Assuming Dilution (USD)

ebb3d0c712a982347b25b0c98cca3c8fe9e8df2cf359e237ef87274428a27b60

CSX’s **Net Earnings** fell in FY 2023 primarily due to a combination of **revenue declines** and **increased expenses**. The revenue was lower because of decreases in intermodal storage revenue, reduced fuel surcharges, pricing declines in export coal, and lower intermodal volume, while labor and fringe costs, depreciation and amortization, and purchased services and other expenses increased. Additionally, gains on property dispositions were significantly lower, and higher interest expenses further contributed to the decline in net earnings by **$451 million** (an **11% decrease**) compared to FY 2022.  **[0000277948-24-000003_pressrelease_q42023.htm:0]** **[0000277948-24-000010_csx-20231231.htm:30]** 

Why did Net Earnings fall in FY 2023?

Based on the documents, there isn’t any indication of a net earnings spike in Q2 2024. In fact, the information provided shows that net earnings were **slightly lower** in Q2 2024 compared to the prior year (a **2% decrease** from **$984 million** to approximately **$963 million**), and the change was driven by **flat revenue**, **increased expenses** (including **higher labor and service costs, as well as higher depreciation and amortization**), and **weaker coal segment performance**.  **[0000277948-24-000046_pressrelease_q22024.htm:0]** **[0000277948-24-000046_qfr_q22024.htm:0]** **[0000277948-24-000046_qfr_q22024.htm:8]** **[0000277948-24-000046_qfr_q22024.htm:3]** **[0000277948-24-000047_csx-20240630.htm:29]** 

What drove the net earnings spike in Q2 2024?

The **EPS was lower in FY 2023** primarily because **net earnings declined by $451 million (11%)**, with **operating income falling by $462 million (8%)** due to **lower revenue from intermodal storage, reduced fuel surcharge, and lower global benchmark coal prices**. Additionally, there was a significant drop in **gains on property dispositions** (down by **$204 million or 86%**), and **increased expenses** such as **higher labor and fringe costs (up 6%)** and **higher depreciation and amortization (up 7%)** further impacted net earnings. Although share repurchases reduced the number of common shares outstanding, this did not fully mitigate the decline in earnings resulting in a lower EPS compared to FY 2022.  **[0000277948-24-000010_csx-20231231.htm:60]** **[0000277948-24-000010_csx-20231231.htm:51]** **[0000277948-24-000010_csx-20231231.htm:30]** 

Why was EPS lower in FY 2023?

956f20f7f0f7aecdf7f23df10fc3a8e652368af83ad82ea968b9d09f8418e820

**The short-term investments plunged to **$2 million** in Q1 2024 due to the **proceeds from sales of short-term investments** amounting to **$81 million** during that period, with no new purchases reported, leading to a significant drop from **$83 million** at the end of Q4 2023.  **[0000277948-24-000030_qfr_q12024.htm:3]** **[0000277948-24-000032_csx-20240331.htm:3]** **

Why did Short-term Investments plunge to 2 in Q1 2024?

The drastic reduction in current maturities of long-term debt in Q3 2024 is primarily explained by the repayment of **$556 million** in long-term debt, which reduced the current portion from **$558 million as of Q4 2023** to **$6 million as of Q3 2024**.  **[0000277948-24-000054_csx-20240930.htm:16]** **[0000277948-24-000052_qfr_q32024.htm:3]** 

What explains the drastic reduction in current maturities of long-term debt in Q3 2024?

CSX’s increase in cash and cash equivalents in Q3 2024 was driven by a combination of changes in operating, investing, and financing activities. Specifically, the company experienced a net cash increase of **$291 million** due to several factors. In operating activities, there was **$166 million less cash generated** because of **$387 million in tax payments** related to the 2023 tax year, which was partially offset by prior year payments totaling **$238 million** for retroactive wages, bonuses, and related taxes. In investing activities, the company used **$216 million more cash** primarily for capital expenditures and acquisition spending, although this was somewhat moderated by higher net sales of short-term investments. Finally, in financing activities, CSX used **$1.2 billion less cash**, largely due to lower share repurchases, which contributed to the overall net increase in cash.  **[0000277948-24-000054_csx-20240930.htm:36]** 

What factors drove the increase in Cash and Cash Equivalents in Q3 2024?

CSX's long-term debt increased in Q3 2024 due to several key activities. The company issued **$550 million** of new debt and repaid **$556 million**, while also reclassifying **$4 million** from the current portion to the long-term section and recording additional adjustments of **$14 million** related to hedging, discounts, premiums, and other factors. These combined transactions led to a net increase in long-term debt from **$17,975 million** at the end of 2023 to **$18,535 million** in Q3 2024.  **[0000277948-24-000054_csx-20240930.htm:16]** 

Why did Long-term Debt rise in Q3 2024?

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The drop in Operating Cash Flow in Q1 2024 was primarily due to **federal tax payments of $387 million** that were previously postponed, a **decrease in net earnings by $94 million** compared to Q1 2023, and the **absence of prior period retroactive wage, bonus, and related tax payments** that were made in Q1 2023. This combination of a significant tax outflow and lower operating earnings drove the overall reduction in cash flow from operations.  **[0000277948-24-000032_csx-20240331.htm:3]** **[0000277948-24-000030_qfr_q12024.htm:3]** **[0000277948-24-000032_csx-20240331.htm:24]** **[0000277948-24-000032_csx-20240331.htm:22]** 

Why did Operating Cash Flow drop in Q1 2024?

The lower Operating Cash Flow in Q2 2024 was primarily due to **federal tax payments of $387 million** for the 2023 tax year and **lower net earnings**, both of which significantly reduced cash generated from operations. These decreases were partially offset by the absence of prior-year payments of **$238 million** for retroactive wages, bonuses, and associated taxes related to finalized labor agreements.  **[0000277948-24-000047_csx-20240630.htm:35]** 

What factors contributed to the lower Operating Cash Flow in Q2 2024?

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25fdefc25566ea3174e32d0c5270bf67a3a9f7562464aee7d42baf0636bfe574

CSX Corp (CSX)

Financials