CSX Corporation 10-K Summary: Fiscal Year Ended December 28, 2001
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 28, 2001 for CSX Corporation, a holding company primarily engaged in rail transportation through its subsidiary CSX Transportation, Inc. (CSXT). The company also operates CSX Intermodal and CSX World Terminals. As of January 25, 2002, the aggregate market value of voting stock held by non-affiliates was approximately $6.8 billion, with 213,888,650 shares of Common Stock outstanding.
Key Financial Metrics
Based on the Consolidating Statement of Earnings and Financial Position provided in the filing:
- Operating Revenue: $8,110 million (Consolidated).
- Operating Income: $957 million (Consolidated).
- Net Earnings: $293 million (Consolidated).
- Total Assets: $20,801 million.
- Total Liabilities: $14,681 million.
- Shareholders' Equity: $6,120 million.
- Long-term Debt: $5,839 million (excluding current maturities of $1,044 million).
- Cash and Cash Equivalents: $618 million (Total Current Assets include $618M in cash/investments).
- Operating Cash Flow: $827 million provided by operating activities.
Material Changes vs. Prior Period
Comparing the fiscal year ended December 28, 2001, to the prior year ended December 29, 2000:
- Revenue Decline: Consolidated operating revenue decreased from $8,191 million to $8,110 million.
- Profitability Drop: Net earnings fell significantly from $565 million in 2000 to $293 million in 2001. This decline is largely attributed to the absence of a $365 million gain on the sale of discontinued operations (international container-shipping assets) recorded in 2000.
- Operating Income: Operating income decreased from $805 million to $957 million? Correction based on data: Operating income was $805 million in 2000 and $957 million in 2001. Operating income actually increased by $152 million despite lower revenue, indicating improved operational efficiency or cost management.
- Debt Structure: Short-term debt decreased significantly from $749 million in 2000 to $225 million in 2001, while long-term debt remained relatively stable ($5,896 million vs $5,839 million).
Guidance, Risks, and Contingencies
The filing text provided does not contain specific forward-looking guidance or numerical outlook for 2002, as this information is incorporated by reference from the Annual Report to Shareholders (pages 17-29). However, the following risks and contingencies are noted:
- Legal Proceedings: The company faces ongoing litigation including the "New Orleans Tank Car Fire Litigation" and "STB Proceeding." Environmental management liabilities are also disclosed.
- Debt Obligations: CSX has guaranteed obligations for CSX Lines related to three D-7 class container ships sold and leased back in 1987. These ships serve as collateral for debt securities.
- Market Risk: Quantitative and qualitative disclosures regarding market risk are incorporated by reference from the Annual Report.
Investor Verification Checklist
- Verify the specific details of the "New Orleans Tank Car Fire Litigation" and potential financial exposure, as the filing only references the existence of the matter.
- Confirm the impact of the 2000 gain on discontinued operations ($365 million) on year-over-year earnings comparisons to understand core operational performance.
- Review the "Management's Discussion and Analysis" (incorporated by reference) for specific commentary on the 2001 operating income increase despite revenue decline.
- Assess the liquidity position given the reduction in short-term debt and the specific cash flow generation of $827 million.
- Examine the status of the Conrail investment ($4,655 million) and any related integration risks or benefits.