Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

CSX Corp., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	319)	276)	63)	63)	—)
Intangible assets, cost	198)	180)	—)	—)	—)
Accumulated amortization	(15)	(5)	—)	—)	—)
Intangible assets, net carrying amount	183)	175)	—)	—)	—)
Goodwill and other intangible assets, net	502)	451)	63)	63)	—)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	CSX Corp. goodwill increased from 2020 to 2021 and from 2021 to 2022.
Intangible assets, net carrying amount	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	CSX Corp. intangible assets, net carrying amount increased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets, net	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	CSX Corp. goodwill and other intangible assets, net increased from 2020 to 2021 and from 2021 to 2022.

CSX Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	41,912)	40,531)	39,793)	38,257)	36,729)
Less: Goodwill	319)	276)	63)	63)	—)
Total assets (adjusted)	41,593)	40,255)	39,730)	38,194)	36,729)
Adjustment to Shareholders’ Equity, Attributable To CSX
Shareholders’ equity, attributable to CSX (as reported)	12,615)	13,490)	13,101)	11,848)	12,563)
Less: Goodwill	319)	276)	63)	63)	—)
Shareholders’ equity, attributable to CSX (adjusted)	12,296)	13,214)	13,038)	11,785)	12,563)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

CSX Corp., Financial Data: Reported vs. Adjusted

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CSX Corp., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover
Reported total asset turnover	0.35	0.31	0.27	0.31	0.33
Adjusted total asset turnover	0.36	0.31	0.27	0.31	0.33
Financial Leverage
Reported financial leverage	3.32	3.00	3.04	3.23	2.92
Adjusted financial leverage	3.38	3.05	3.05	3.24	2.92
Return on Equity (ROE)
Reported ROE	33.02%	28.03%	21.11%	28.11%	26.34%
Adjusted ROE	33.88%	28.61%	21.21%	28.26%	26.34%
Return on Assets (ROA)
Reported ROA	9.94%	9.33%	6.95%	8.71%	9.01%
Adjusted ROA	10.02%	9.39%	6.96%	8.72%	9.01%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	CSX Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	CSX Corp. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	CSX Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	CSX Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

CSX Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenue	14,853)	12,522)	10,583)	11,937)	12,250)
Total assets	41,912)	40,531)	39,793)	38,257)	36,729)
Activity Ratio
Total asset turnover¹	0.35	0.31	0.27	0.31	0.33
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	14,853)	12,522)	10,583)	11,937)	12,250)
Adjusted total assets	41,593)	40,255)	39,730)	38,194)	36,729)
Activity Ratio
Adjusted total asset turnover²	0.36	0.31	0.27	0.31	0.33

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 14,853 ÷ 41,912 = 0.35

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 14,853 ÷ 41,593 = 0.36

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	CSX Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	41,912)	40,531)	39,793)	38,257)	36,729)
Shareholders’ equity, attributable to CSX	12,615)	13,490)	13,101)	11,848)	12,563)
Solvency Ratio
Financial leverage¹	3.32	3.00	3.04	3.23	2.92
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	41,593)	40,255)	39,730)	38,194)	36,729)
Adjusted shareholders’ equity, attributable to CSX	12,296)	13,214)	13,038)	11,785)	12,563)
Solvency Ratio
Adjusted financial leverage²	3.38	3.05	3.05	3.24	2.92

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity, attributable to CSX
= 41,912 ÷ 12,615 = 3.32

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity, attributable to CSX
= 41,593 ÷ 12,296 = 3.38

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	CSX Corp. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Shareholders’ equity, attributable to CSX	12,615)	13,490)	13,101)	11,848)	12,563)
Profitability Ratio
ROE¹	33.02%	28.03%	21.11%	28.11%	26.34%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Adjusted shareholders’ equity, attributable to CSX	12,296)	13,214)	13,038)	11,785)	12,563)
Profitability Ratio
Adjusted ROE²	33.88%	28.61%	21.21%	28.26%	26.34%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ equity, attributable to CSX
= 100 × 4,166 ÷ 12,615 = 33.02%

² Adjusted ROE = 100 × Net earnings ÷ Adjusted shareholders’ equity, attributable to CSX
= 100 × 4,166 ÷ 12,296 = 33.88%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	CSX Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Total assets	41,912)	40,531)	39,793)	38,257)	36,729)
Profitability Ratio
ROA¹	9.94%	9.33%	6.95%	8.71%	9.01%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Adjusted total assets	41,593)	40,255)	39,730)	38,194)	36,729)
Profitability Ratio
Adjusted ROA²	10.02%	9.39%	6.96%	8.72%	9.01%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,166 ÷ 41,912 = 9.94%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 4,166 ÷ 41,593 = 10.02%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	CSX Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

CSX Corp. (NASDAQ:CSX)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

CSX Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

CSX Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)