Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

CSX Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Federal	928)	827)	559)	608)	572)
State	203)	176)	123)	104)	144)
Current	1,131)	1,003)	682)	712)	716)
Federal	166)	166)	149)	235)	275)
State	(49)	1)	31)	38)	4)
Deferred	117)	167)	180)	273)	279)
Income tax expense	1,248)	1,170)	862)	985)	995)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	CSX Corp. current increased from 2020 to 2021 and from 2021 to 2022.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	CSX Corp. deferred decreased from 2020 to 2021 and from 2021 to 2022.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	CSX Corp. income tax expense increased from 2020 to 2021 and from 2021 to 2022.

CSX Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes	2.20%	2.80%	3.20%	2.50%	2.60%
Other	-0.10%	-0.20%	-0.40%	-0.70%	-0.50%
Effective income tax rate	23.10%	23.60%	23.80%	22.80%	23.10%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	CSX Corp. effective income tax rate decreased from 2020 to 2021 and from 2021 to 2022.

CSX Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Other employee benefit plans	105)	106)	96)	127)	146)
Other	553)	499)	382)	497)	608)
Deferred income tax assets	658)	605)	478)	624)	754)
Accelerated depreciation	(7,600)	(7,366)	(7,195)	(7,020)	(6,799)
Other	(627)	(622)	(451)	(565)	(645)
Deferred income tax liabilities	(8,227)	(7,988)	(7,646)	(7,585)	(7,444)
Net deferred income tax assets (liabilities)	(7,569)	(7,383)	(7,168)	(6,961)	(6,690)

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
Deferred income tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	CSX Corp. deferred income tax assets increased from 2020 to 2021 and from 2021 to 2022.
Net deferred income tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	CSX Corp. net deferred income tax assets (liabilities) decreased from 2020 to 2021 and from 2021 to 2022.

CSX Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Deferred income tax liabilities	7,569)	7,383)	7,168)	6,961)	6,690)

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
Deferred income tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	CSX Corp. deferred income tax liabilities 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 Liabilities
Total liabilities (as reported)	29,287)	27,031)	26,683)	26,394)	24,149)
Less: Noncurrent deferred tax liabilities, net	7,569)	7,383)	7,168)	6,961)	6,690)
Total liabilities (adjusted)	21,718)	19,648)	19,515)	19,433)	17,459)
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: Net deferred tax assets (liabilities)	(7,569)	(7,383)	(7,168)	(6,961)	(6,690)
Shareholders’ equity, attributable to CSX (adjusted)	20,184)	20,873)	20,269)	18,809)	19,253)
Adjustment to Net Earnings
Net earnings (as reported)	4,166)	3,781)	2,765)	3,331)	3,309)
Add: Deferred income tax expense (benefit)	117)	167)	180)	273)	279)
Net earnings (adjusted)	4,283)	3,948)	2,945)	3,604)	3,588)

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
Net Profit Margin
Reported net profit margin	28.05%	30.19%	26.13%	27.90%	27.01%
Adjusted net profit margin	28.84%	31.53%	27.83%	30.19%	29.29%
Financial Leverage
Reported financial leverage	3.32	3.00	3.04	3.23	2.92
Adjusted financial leverage	2.08	1.94	1.96	2.03	1.91
Return on Equity (ROE)
Reported ROE	33.02%	28.03%	21.11%	28.11%	26.34%
Adjusted ROE	21.22%	18.91%	14.53%	19.16%	18.64%
Return on Assets (ROA)
Reported ROA	9.94%	9.33%	6.95%	8.71%	9.01%
Adjusted ROA	10.22%	9.74%	7.40%	9.42%	9.77%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	CSX Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
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 adjusted 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 adjusted 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)
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Revenue	14,853)	12,522)	10,583)	11,937)	12,250)
Profitability Ratio
Net profit margin¹	28.05%	30.19%	26.13%	27.90%	27.01%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	4,283)	3,948)	2,945)	3,604)	3,588)
Revenue	14,853)	12,522)	10,583)	11,937)	12,250)
Profitability Ratio
Adjusted net profit margin²	28.84%	31.53%	27.83%	30.19%	29.29%

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 Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × 4,166 ÷ 14,853 = 28.05%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Revenue
= 100 × 4,283 ÷ 14,853 = 28.84%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	CSX Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets	41,912)	40,531)	39,793)	38,257)	36,729)
Adjusted shareholders’ equity, attributable to CSX	20,184)	20,873)	20,269)	18,809)	19,253)
Solvency Ratio
Adjusted financial leverage²	2.08	1.94	1.96	2.03	1.91

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 = Total assets ÷ Adjusted shareholders’ equity, attributable to CSX
= 41,912 ÷ 20,184 = 2.08

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	4,283)	3,948)	2,945)	3,604)	3,588)
Adjusted shareholders’ equity, attributable to CSX	20,184)	20,873)	20,269)	18,809)	19,253)
Profitability Ratio
Adjusted ROE²	21.22%	18.91%	14.53%	19.16%	18.64%

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 × Adjusted net earnings ÷ Adjusted shareholders’ equity, attributable to CSX
= 100 × 4,283 ÷ 20,184 = 21.22%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	4,283)	3,948)	2,945)	3,604)	3,588)
Total assets	41,912)	40,531)	39,793)	38,257)	36,729)
Profitability Ratio
Adjusted ROA²	10.22%	9.74%	7.40%	9.42%	9.77%

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 × Adjusted net earnings ÷ Total assets
= 100 × 4,283 ÷ 41,912 = 10.22%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

CSX Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

CSX Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)