Financial Analysis

"Commitments and Contingencies Purchase Commitments In 2025, CSXT revised and expanded its long-term locomotive agreement with a third party. The new agreement contains commitments related to a long-term maintenance program that covers a portion of CSXT's fleet of locomotives, specific locomotive rebuilds and an agreement to purchase additional locomotives. The maintenance program costs are based on the maintenance cycle for each covered locomotive, which is determined by the asset's utilization and type. Expected future costs may change as required maintenance schedules are revised and locomotives are placed into or removed from active service. The rebuild program costs are based on the condition of locomotive units and the Company's plan for rebuilding existing locomotives. Under CSXTs current obligations, the maintenance agreement will expire no earlier than 2035 and CSXT is contractually committed to locomotive rebuilds through 2029. Additionally, CSXT is contractually obligated to purchase a total of 100 new locomotives between 2026 and 2028. The following table summarizes CSXTs payments, including prepayments, for the long-term maintenance and rebuild program, which covers approximately 1,900 locomotives with payments based on active status during the period. The 2025 payment amount includes a $96 million prepayment for 2026 locomotive maintenance services, which is included in other current assets on the consolidated balance sheet, as well as $14 million for pre-owned …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt and Credit Agreements Debt at December 2025 and December 2024 is shown in the table below. For information regarding the fair value of debt, see Note 13, Fair Value Measurements . Maturity at December Average Interest Rates at December December December (Dollars in Millions) 2025 2025 2025 2024 Notes 2026-2068 4.4% $ 18,858 $ 18,492 Equipment Obligations (a) 2027 4.3% 1 Finance Leases 2026-2032 4.7% 15 10 Subtotal Long-term Debt (Including Current Portion) $ 18,873 $ 18,503 Less Debt Due within One Year (708) (606) Long-term Debt (Excluding Current Portion) $ 18,165 $ 17,897 (a) Equipment obligations are secured by an interest in certain railroad equipment. Total activity related to long-term debt during 2025 is as follows: (Dollars in Millions) Current Portion Long-term Portion Total Long-term Debt as of December 31, 2024 $ 606 $ 17,897 $ 18,503 2025 Activity: Long-term Debt Issued 900 900 Long-term Debt Repaid (613) (613) Reclassifications 703 (703) Hedging, Discount, Premium and Other Activity 12 71 83 Long-term Debt as of December 31, 2025 $ 708 $ 18,165 $ 18,873 Debt Issuance On March 10, 2025, CSX issued an initial $600 million of 5.05% notes due 2035. On October 23, 2025, CSX further issued $300 million of 5.05% notes due 2035, which was a reopening of the existing notes originally issued in March 2025. On September 18, 2024, CSX issued $550 million of 4.90% notes due 2055. In September 2023, CSX issued $600 million of 5.20% notes due 2033. These notes are includ …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys revenues disaggregated by market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Fuel surcharge revenue is included in the individual markets. Years Ended (Dollars in Millions) 2025 2024 2023 Chemicals $ 2,776 $ 2,850 $ 2,599 Agricultural and Food Products 1,618 1,644 1,657 Automotive 1,182 1,226 1,219 Forest Products 975 1,047 1,012 Metals and Equipment 869 859 917 Minerals 832 772 733 Fertilizers 521 505 516 Total Merchandise 8,773 8,903 8,653 Intermodal 2,073 2,047 2,060 Coal 1,900 2,247 2,484 Trucking 816 844 882 Other 530 499 578 Total $ 14,092 $ 14,540 $ 14,657 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock Plans and Share-Based Compensation Under CSX's share-based compensation plans, awards consist of performance units, stock options, and restricted stock units for management and stock grants for directors. Awards granted under the various programs are determined and approved by the Compensation and Talent Management Committee of the Board of Directors. Awards to the Chief Executive Officer are approved by the full Board and awards to senior executives are approved by the Compensation and Talent Management Committee. In certain circumstances, the Chief Executive Officer or delegate approves awards to management employees other than senior executives. The Board of Directors approves awards granted to CSX's non-management directors upon recommendation of the Governance and Sustainability Committee. Share-based compensation expense for awards under share-based compensation plans and purchases made as part of the employee stock purchase plan is measured using the fair value of the award on the grant date and is recognized on a straight-line basis over the service period of the respective award. Alternatively, expense is recognized upon death or over an accelerated service period for employees whose agreements allow for continued vesting upon retirement or separation. Forfeitures are recognized as they occur. Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exer …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The Financial Instruments Topic in the ASC requires disclosures about fair value of financial instruments in annual reports as well as in quarterly reports. For CSX, this statement applies to certain investments, pension plan assets, long-term debt and interest rate derivatives. The Fair Value Measurements and Disclosures Topic in the ASC clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, including on a non-recurring basis, and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the value of the Company's investments, pension plan assets, long-term debt, interest rate derivatives and long-lived assets. The inputs or methodologies used for valuing financial instruments are not necessarily an indication of the risk associated with investing in these financial instruments. These inputs are summarized in the three broad levels listed below: Level 1 observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.); and Level 3 significant unobservable inputs (including the Companys own assumptions about the assumptions market participants would use in determining the fair value of investments). The valuation methods described below may produce a fair valu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The following table presents goodwill and other intangible asset balances and adjustments to those balances for the years ended December 31, 2025, and 2024. There is no remaining goodwill attributed to the Company's trucking operating segment as of December 31, 2025, compared to goodwill of $159 million, and $245 million as of December 2024 and 2023, respectively. The goodwill balance attributed to the rail segment was $80 million at the end of each of the years shown. All intangible assets are attributed to the trucking operating segment. Goodwill Intangible Assets (Dollars in Millions) Net Carrying Amount Cost Accumulated Amortization Net Carrying Amount Total Goodwill and Other Intangible Assets - Net Balance at December 31, 2023 $ 325 $ 206 $ (25) $ 181 $ 506 Additions 22 25 25 47 Amortization (12) (12) (12) Impairment (108) (108) Balance at December 31, 2024 $ 239 $ 231 $ (37) $ 194 $ 433 Additions 5 5 5 10 Amortization (12) (12) (12) Impairment (164) (164) Balance at December 31, 2025 $ 80 $ 236 $ (49) $ 187 $ 267 Additions During 2025 and 2024 the Company's trucking operating segment, which is solely comprised of Quality Carriers, completed several acquisitions that were immaterial individually and in aggregate. The acquisitions resulted in the addition of $5 million and $22 million of goodwill in the trucking operating segment in 2025 and 2024, respectively, which were subsequently impaired. Other intangible assets recognized as pa …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Earnings before income taxes of $3.8 billion, $4.6 billion and $4.8 billion for the years ended 2025, 2024 and 2023, respectively, nearly all of which represents earnings from domestic operations. The breakdown of income tax expense between current and deferred is as follows: Years Ended (Dollars in Millions) 2025 2024 2023 Current: Federal $ 553 $ 873 $ 851 State 133 200 184 Subtotal Current $ 686 $ 1,073 $ 1,035 Deferred: Federal 195 26 110 State (1) (14) 16 Subtotal Deferred $ 194 $ 12 $ 126 Total Income Tax Expense $ 880 $ 1,085 $ 1,161 The Company recorded a 2025 income tax benefit of $43 million primarily as a result of a change in the valuation of the state deferred tax liability as a result of filing the 2024 tax returns, other state tax planning, and a tax credit purchase benefit. In 2024, the Company recorded an income tax benefit of $31 million primarily as a result of state legislative changes and a change in the valuation of the state deferred tax liability as a result of filing the 2023 tax returns. In 2023, the Company recorded an income tax benefit of $22 million primarily from a change in the valuation of the state deferred tax liability. NOTE 12. Income Taxes, continued 2025 Income Tax Expense Reconciliation and Cash Payments The tables in this section present information on income tax expenses and payments for 2025. Prior period values are not presented, as these disclosure requirements have been implemented on a prospective basis. The principa …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases At inception, the Company determines if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of the Companys lease arrangements contain lease components (e.g., minimum rent payments) and non-lease components (e.g., maintenance, labor charges, etc.). The Company generally accounts for each component separately based on the estimated standalone price of each component. For certain equipment leases, such as freight car, vehicles and work equipment, the Company accounts for the lease and non-lease components as a single lease component. Certain of the Companys lease agreements include rental payments that are adjusted periodically for an index or rate. The leases are initially measured using the projected payments adjusted for the index or rate in effect at the commencement date. The Companys lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating Leases Operating leases are included in right-of-use lease assets, other current liabilities and long-term lease liabilities on the consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term, discounted using the Companys secured incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases, which have an initial term of 12 months or less, are not …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures . This standard update requires additional interim and annual disclosures about a companys income taxes, including more detailed information around the annual rate reconciliation and income taxes paid. The Company adopted this guidance prospectively for this 2025 annual report filed on Form 10-K. This standard update did not impact the Company's results of operations or financial position as it only impacts disclosures. See Note 12, Income Taxes. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. This standard update requires additional disclosures about certain expenses in commonly presented expense captions. The Company is required to adopt the guidance for its 2027 annual report filed on Form 10-K, though early adoption is permitted. The Company is currently evaluating the impact of these amendments on its disclosures, but this standard update will not impact the Company's results of operations or financial position. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. This standard update modernizes the capitalization criteria for internal-use software, eliminating references to project stages and instead requiring that projects meet completion probability criteria before costs can be capitalized. This guidance is effective beginning first quarter 2028, tho …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel. For employees hired prior to 2003, the plans provide eligible employees with retirement benefits based predominantly on years of service and compensation rates near retirement. For employees hired between 2003 and 2019, benefits are determined based on a cash balance formula, which provides benefits by utilizing interest and pay credits based upon age, service and compensation. The CSX Pension Plan, the largest plan based on benefit obligation, was closed to new participants in 2020. The Company engages independent actuaries to compute the amounts of liabilities and expenses relating to these plans subject to the assumptions that the Company determines are appropriate based on historical trends, current market rates and future projections. These amounts are reviewed by management. In order to perform this valuation, the actuaries are provided with the details of the population covered at the beginning of the year, summarized in the table below, and projects that population forward to the end of the year . As of Pension Plan Participants: January 1, 2025 Active Employees 2,233 Retirees and Beneficiaries 10,909 Terminated Vested and Other 3,108 Total 16,250 NOTE 9. Employee Benefit Plans, continued The benefit obligation for these plans represents the liability of the Company for current and former employees and is affected primarily by the following: servi …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Investment in Affiliates and Related-Party Transactions CSX's investments in affiliates are included on the consolidated balance sheet as investments in affiliates and other companies. December December (Dollars in Millions) 2025 2024 Conrail $ 1,301 $ 1,245 TTX 1,055 1,012 Other Investments in Affiliates 278 263 Total $ 2,634 $ 2,520 Conrail Through a limited liability company, CSX and Norfolk Southern Corporation (NS) jointly own Conrail. CSX has a 42% economic interest and 50% voting interest in the jointly-owned entity, and NS has the remainder of the economic and voting interests. Pursuant to the Investments-Equity Method and Joint Venture Topic in the ASC, CSX applies the equity method of accounting to its investment in Conrail. Conrail owns rail infrastructure and operates for the joint benefit of CSX and NS. This is known as the shared asset area. Conrail charges fees for right-of-way usage, equipment rentals and transportation, switching and terminal service charges in the shared asset area. These expenses are included in purchased services and other on the consolidated income statements. Future payments due to Conrail under the shared asset area agreements are shown in the table below. (Dollars in Millions) Conrail Shared Years Asset Agreement 2026 $ 39 2027 39 2028 39 2029 16 2030 Thereafter Total $ 133 Also, included in equity earnings of affiliates are CSXs 42% share of Conrails income and its amortization of the fair value write-up arising from the acquisition …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Revenues The Companys revenues are primarily derived from the transportation of freight as performance obligations that arise from its contracts with customers are satisfied. The following table presents the Companys revenues disaggregated by market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Fuel surcharge revenue is included in the individual markets. Years Ended (Dollars in Millions) 2025 2024 2023 Chemicals $ 2,776 $ 2,850 $ 2,599 Agricultural and Food Products 1,618 1,644 1,657 Automotive 1,182 1,226 1,219 Forest Products 975 1,047 1,012 Metals and Equipment 869 859 917 Minerals 832 772 733 Fertilizers 521 505 516 Total Merchandise 8,773 8,903 8,653 Intermodal 2,073 2,047 2,060 Coal 1,900 2,247 2,484 Trucking 816 844 882 Other 530 499 578 Total $ 14,092 $ 14,540 $ 14,657 Revenue Recognition The Company generates revenue from rail freight billings under contracts with customers generally on a rate per carload, container or ton-basis based on length of haul and commodities carried. The Companys performance obligation arises when it receives a bill of lading (BOL) to transport a customer's commodities at a negotiated price contained in a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received, a contract is formed whereby the parties are committed to perform, collectability of consideration is probable and the rights of the parties, shipping terms and co …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Reporting and Significant Expenses The Company has two operating segments: rail and trucking. Although the Company provides a breakdown of revenue by line of business, the overall financial and operational performance of the railroad is analyzed as one operating segment due to the integrated nature of the rail network. The ""Rail"" column in the table below includes the activities of all CSX entities other than the trucking company, Quality Carriers, and also includes the Company's equity in the net income of equity method investments. As the trucking segment is not material for separate disclosure as a reportable segment, the results of these operations are included as a reconciliation to the Company's consolidated results in the tables below. See additional information in Note 1, Nature of Operations and Significant Accounting Policies. The Company's chief operating decision maker (""CODM"") is its Chief Executive Officer. The CODM reviews information presented on a consolidated basis, accompanied by supplemental information about the trucking segment separately, for purposes of allocating resources and evaluating financial performance. The Company has determined that operating income is the key measure of segment profit or loss as this measure is the focus of the CODM in developing financial plans, including resource allocation, and evaluating actual financial performance against plan. The CODM regularly reviews operating results broken out by significant expense. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Shareholders Equity Common and preferred stock consists of the following: Common Stock, $1 Par Value December 2025 (Units in Millions) Common Shares Authorized 5,400 Common Shares Issued and Outstanding 1,860 Preferred Stock Preferred Shares Authorized 25 Preferred Shares Issued and Outstanding Holders of common stock are entitled to one vote on all matters requiring a vote for each share held. Preferred stock is senior to common stock with respect to dividends and upon liquidation of CSX. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Insurance The Company maintains insurance programs with substantial limits for property damage, including resulting business interruption, as well as casualty claims, which includes third-party liability. A certain amount of risk is retained by the Company on each insurance program. Under its property insurance program, the Company retains all risk up to $200 million per occurrence for losses from floods and named windstorms and up to $175 million per occurrence for other property losses. For casualty claims, the Company retains all risk up to $100 million per occurrence. CSX purchases insurance coverage above its full self-retention amounts and it retains a percentage of risk at various layers as well. While the Company believes its insurance coverage is adequate, future claims could exceed existing insurance coverage or insurance may not continue to be available at commercially reasonable rates. Legal The Company is involved in litigation incidental to its business and is a party to a number of legal actions and claims, various governmental proceedings and private civil lawsuits, including, but not limited to, those related to fuel surcharge practices, tax matters, environmental and hazardous material exposure matters, FELA and labor claims by current or former employees, other personal injury or property claims and disputes and complaints involving certain transportation rates and charges. Some of the legal proceedings include claims for comp …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt and Credit Agreements Total activity related to long-term debt during the quarter ended June 30, 2026, is shown in the table below. For fair value information related to the Company's long-term debt, see Note 9, Fair Value Measurements . (Dollars in Millions) Current Portion Long-term Portion Total Long-term Debt as of December 31, 2025 $ 708 $ 18,165 $ 18,873 2026 Activity: Long-term Debt Repaid (9) (9) Reclassifications 1,002 (1,002) Hedging, Discount, Premium and Other Activity 1 (1) Long-term Debt as of June 30, 2026 $ 1,702 $ 17,162 $ 18,864 Interest Rate Derivatives Fair Value Hedges In first quarter 2025, CSX entered into two fixed-to-floating interest rate swaps classified as fair value hedges. The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to the Secured Overnight Financing Rate (""SOFR"") on a cumulative $250 million of fixed rate outstanding notes which are due in 2055. The cumulative fair value of these swaps, which is included in other long-term assets on the consolidated balance sheet, was an asset of $4 million and $9 million as of June 30, 2026, and December 31, 2025, respectively. CSX has seven other fixed-to-floating interest rate swaps classified as fair value hedges. The swaps are designed to hedge 10 years of interest rate risk associated with market fluctuations attributable to SOFR on a cumulative $1.1 billion of fixed rate outstanding notes which are due between 2032 and 2040. These …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The below table presents the Companys revenues disaggregated by market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Fuel surcharge revenue is included in the individual markets. Second Quarters Six Months (Dollars in Millions) 2026 2025 2026 2025 Chemicals $ 774 $ 701 $ 1,496 $ 1,399 Agricultural and Food Products 444 418 853 826 Automotive 332 320 607 591 Forest Products 266 250 495 499 Metals and Equipment 256 224 476 433 Minerals 242 218 434 399 Fertilizers 132 126 273 262 Total Merchandise 2,446 2,257 4,634 4,409 Intermodal 620 491 1,138 984 Coal 520 477 978 938 Trucking 226 211 428 413 Other 123 138 239 253 Total $ 3,935 $ 3,574 $ 7,417 $ 6,997 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock Plans and Share-Based Compensation Under CSX's share-based compensation plans, awards consist of performance units, stock options and restricted stock units for management and stock grants for directors. Share-based compensation expense for awards under share-based compensation plans is measured using the fair value of the award on the grant date and is recognized on a straight-line basis over the service period of the respective award. Alternatively, expense is recognized upon death or over an accelerated service period for employees whose agreements allow for continued vesting upon retirement or separation. Forfeitures are recognized as they occur. Total pre-tax expense and income tax benefits associated with share-based compensation are shown in the table below. Income tax benefits include impacts from option exercises and the vesting of other equity awards. Second Quarters Six Months (Dollars in Millions) 2026 2025 2026 2025 Share-Based Compensation Expense: Performance Units $ 16 $ 2 $ 18 $ 2 Restricted Stock Units 4 7 8 13 Stock Options 4 3 7 6 Employee Stock Purchase Plan 3 3 5 5 Stock Awards for Directors 2 3 Total Share-Based Compensation Expense $ 27 $ 15 $ 40 $ 29 Income Tax Benefit $ 5 $ 3 $ 12 $ 6 Long-term Incentive Plan In February 2026, the Company granted the following awards under a new long-term incentive plan (""LTIP"") for the years 2026 through 2028, which was adopted under the CSX 2019 Stock and Incentive Award Plan. Granted (Thousands) Weighted …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Investments The Company's investment assets are carried at fair value on the consolidated balance sheet in accordance with the Fair Value Measurements and Disclosures Topic in the ASC. They are valued with assistance from a third-party trustee and consist of exchange-traded funds, corporate bonds, asset-backed securities, government securities, and short-term time deposits. The exchange-traded funds are valued at quoted market prices determined in an active market, which are Level 1 inputs. The corporate bonds, asset-backed securities and government securities are valued using broker quotes that utilize observable market inputs, which are Level 2 inputs. The carrying amounts of time deposits, which are reported in the consolidated balance sheet using Level 2 inputs, approximate fair value due to their short-term nature. Unrealized losses as of June 30, 2026, and June 30, 2025, were not material. The Company believes any impairment of investments held with gross unrealized losses to be temporary and not the result of credit risk. The Company's investment assets are carried at fair value on the consolidated balance sheets, within the line items short-term investments and other long-term assets, as summarized in the following table. June 30, 2026 December 31, 2025 (Dollars in Millions) Level 1 Level 2 Total Level 1 Level 2 Total Exchange-traded Funds $ 6 $ $ 6 $ 5 $ $ 5 Time Deposits 375 375 Corporate Bonds 75 75 82 82 Government Securities 72 72 71 71 As …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. This standard update requires additional disclosures about certain expenses in commonly presented expense captions. The Company is required to adopt the guidance for its 2027 annual report on Form 10-K, though early adoption is permitted. The Company is currently evaluating the impact of these amendments on its disclosures, but this standard update will not impact the Company's results of operations or financial position. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. This standard update modernizes the capitalization criteria for internal-use software, eliminating references to project stages and instead requiring that projects meet completion probability criteria before costs can be capitalized. This guidance is effective beginning first quarter 2028, though early adoption is permitted, and can be applied using a prospective, retrospective, or modified transition approach. The Company is currently evaluating the impact of these amendments but does not anticipate that adoption will have a material impact on the Company's results of operations or financial position. In December 2025, the FASB issued ASU 2025-10, Accounting for Government Grants by Business Entities . This standard establishes the accounting for government grants received by a business entity, including guidance for both gr …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans The Company sponsors defined benefit pension plans principally for salaried, management personnel. All plans are closed to new participants. Independent actuaries compute the amounts of liabilities and expenses relating to these plans subject to the assumptions that the Company determines are appropriate based on historical trends, current market rates and future projections. These amounts are reviewed by management. Only the service cost component of net periodic benefit costs is included in labor and fringe expense on the consolidated income statement. All other components of net periodic benefit cost are included in other income - net. Pension Benefits Cost Second Quarters Six Months (Dollars in Millions) 2026 2025 2026 2025 Service Cost Included in Labor and Fringe $ 5 $ 5 $ 11 $ 10 Interest Cost 25 28 50 55 Expected Return on Plan Assets (37) (40) (74) (80) Amortization of Net Loss 6 5 12 11 Total Included in Other Income - Net (6) (7) (12) (14) Net Periodic Benefit Credit $ (1) $ (2) $ (1) $ (4) Qualified pension plan obligations are funded in accordance with regulatory requirements and with an objective of meeting or exceeding minimum funding requirements necessary to avoid restrictions on flexibility of plan operation and benefit payments. No contributions to the Company's qualified pension plans are expected in 2026.

PensionAndOtherPostretirementBenefitsDisclosureTextBlock

Revenues The Companys revenues are primarily derived from the transportation of freight as performance obligations that arise from its contracts with customers are satisfied. The below table presents the Companys revenues disaggregated by market as this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Fuel surcharge revenue is included in the individual markets. Second Quarters Six Months (Dollars in Millions) 2026 2025 2026 2025 Chemicals $ 774 $ 701 $ 1,496 $ 1,399 Agricultural and Food Products 444 418 853 826 Automotive 332 320 607 591 Forest Products 266 250 495 499 Metals and Equipment 256 224 476 433 Minerals 242 218 434 399 Fertilizers 132 126 273 262 Total Merchandise 2,446 2,257 4,634 4,409 Intermodal 620 491 1,138 984 Coal 520 477 978 938 Trucking 226 211 428 413 Other 123 138 239 253 Total $ 3,935 $ 3,574 $ 7,417 $ 6,997 The Companys accounts receivable - net consists of freight and non-freight receivables, reduced by an allowance for credit losses. Freight receivables include amounts earned, billed and unbilled , and currently due from customers for transportation-related services. Non-freight receivables include amounts, billed and unbilled, currently due related to government reimbursement receivables and other non-revenue receivables. (Dollars in Millions) June 30, 2026 December 31, 2025 Freight Receivables $ 1,116 $ 932 Freight Allowance for Credit Losses (20) (23) Freight Receivables - Ne …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Reporting and Significant Expenses The Company has two operating segments: rail and trucking. Although the Company provides a breakdown of revenue by line of business, the overall financial and operational performance of the railroad is analyzed as one operating segment due to the integrated nature of the rail network. The Rail column in the table below includes the activities of all CSX entities other than the trucking company, Quality Carriers, and also includes the Company's equity in the net income of equity method investments. As the trucking segment is not material for separate disclosure as a reportable segment, the results of these operations are included as a reconciliation to the Company's consolidated results in the tables below. The Company's chief operating decision maker (""CODM"") is its CEO. The CODM reviews information presented on a consolidated basis, accompanied by supplemental information about the trucking segment separately, for purposes of allocating resources and evaluating financial performance. The Company has determined that operating income is the key measure of segment profit or loss as this measure is the focus of the CODM in developing financial plans, including resource allocation, and evaluating actual financial performance against plan. The CODM regularly reviews operating results broken out by significant expense. NOTE 11. Segment Reporting and Significant Expenses, continued The table below presents information about the Company's …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing