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CSX Corp. (CSX)

Analysis of Property, Plant and Equipment

Difficulty: Advanced

CSX Corp., Statement of Financial Position, Property, Plant and Equipment

USD $ in millions

		Dec 31, 2018		Dec 31, 2017		Dec 30, 2016		Dec 25, 2015		Dec 26, 2014
	Rail and other track material
	Ties
	Grading
	Ballast
	Bridges, trestles, and culverts
	Signals and interlockers
	Buildings
	Other
	Road
	Locomotive
	Freight cars
	Work equipment and other
	Equipment
	Land
	Construction in progress
	Other
	Properties, cost
	Accumulated depreciation
	Properties, net book value

Item	Description	The company
Properties, cost	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	CSX Corp.’s properties, cost increased from 2016 to 2017 and from 2017 to 2018.
Properties, net book value	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	CSX Corp.’s properties, net book value increased from 2016 to 2017 and from 2017 to 2018.

CSX Corp., Property, Plant and Equipment Ratios

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Average age
	Estimated total useful life (years)
	Estimated age, time elapsed since purchase (years)
	Estimated remaining life (years)

Ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient.	CSX Corp.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors.	CSX Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	CSX Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.
Estimated remaining life		CSX Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Accumulated depreciation
	Properties, cost
	Land
	Ratio
	Average age¹

2018 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Properties, cost – Land)
= 100 × hidden ÷ ( hidden – hidden ) = hidden

Ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient.	CSX Corp.’s average age of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Properties, cost
	Land
	Depreciation expense
	Ratio
	Estimated total useful life (years)¹

2018 Calculations

¹ Estimated total useful life (years) = (Properties, cost – Land) ÷ Depreciation expense
= ( hidden – hidden ) ÷ hidden = hidden

Ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors.	CSX Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Accumulated depreciation
	Depreciation expense
	Ratio
	Time elapsed since purchase (years)¹

2018 Calculations

¹ Time elapsed since purchase (years) = Accumulated depreciation ÷ Depreciation expense
= hidden ÷ hidden = hidden

Ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company’s fixed assets. Useful for comparison purposes.	CSX Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2016 to 2017 and from 2017 to 2018.

		Dec 31, 2018	Dec 31, 2017	Dec 30, 2016	Dec 25, 2015	Dec 26, 2014
	Selected Financial Data (USD $ in millions)
	Properties, net book value
	Land
	Depreciation expense
	Ratio
	Estimated remaining life (years)¹

2018 Calculations

¹ Estimated remaining life (years) = (Properties, net book value – Land) ÷ Depreciation expense
= ( hidden – hidden ) ÷ hidden = hidden

Ratio	Description	The company
Estimated remaining life		CSX Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

	CSX Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality