Other Comprehensive Income
CSX reports comprehensive earnings or loss in accordance with the Comprehensive Income Topic in the ASC in the Consolidated Comprehensive Income Statement. Total comprehensive earnings are defined as all changes in shareholders' equity during a period, other than those resulting from investments by and distributions to shareholders (e.g. issuance of equity securities and dividends). Generally, for CSX, total comprehensive earnings equals net earnings plus or minus adjustments for pension and other post-retirement liabilities. Total comprehensive earnings represent the activity for a period net of tax and were $2.3 billion, $1.8 billion and $1.8 billion for 2013, 2012 and 2011, respectively. See the revision of prior period financial statements in Note 1. Nature of Operations and Significant Accounting Policies.
While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. For CSX, AOCI is primarily the cumulative balance related to pension and other post-retirement benefit adjustments and CSX's share of AOCI of equity method investees. Changes in the AOCI balance by component are shown in the table below.
|
| | | | | | | | | |
| Pension and Other Post-Employment Benefits | Other (a) | Accumulated Other Comprehensive Income (Loss) |
(Dollars in millions) | | | |
Balance December 31, 2010, Net of Tax | $ | (711 | ) | $ | (60 | ) | $ | (771 | ) |
Other Comprehensive Loss | | | |
Loss Before Reclassifications | (216 | ) | (13 | ) | (229 | ) |
Amounts Reclassified to Net Earnings(b) | 75 |
| (1 | ) | 74 |
|
Tax (Expense) Benefit | 53 |
| (2 | ) | 51 |
|
Total Other Comprehensive Loss | (88 | ) | (16 | ) | (104 | ) |
Balance December 30, 2011, Net of Tax | (799 | ) | (76 | ) | (875 | ) |
Other Comprehensive Loss | | | |
Loss Before Reclassifications | (172 | ) | (9 | ) | (181 | ) |
Amounts Reclassified to Net Earnings(b) | 88 |
| (1 | ) | 87 |
|
Tax Benefit | 32 |
| 1 |
| 33 |
|
Total Other Comprehensive Loss | (52 | ) | (9 | ) | (61 | ) |
Balance December 28, 2012, Net of Tax | (851 | ) | (85 | ) | (936 | ) |
Other Comprehensive Loss | | | |
Income Before Reclassifications | 510 |
| 24 |
| 534 |
|
Amounts Reclassified to Net Earnings(b) | 111 |
| (2 | ) | 109 |
|
Tax (Expense) Benefit | (232 | ) | 2 |
| (230 | ) |
Total Other Comprehensive Income | 389 |
| 24 |
| 413 |
|
Balance December 27, 2013, Net of Tax | $ | (462 | ) | $ | (61 | ) | $ | (523 | ) |
(a) Other primarily represents CSX's share of AOCI of equity method investees. Amounts reclassified to net earnings are included in other income - net on the consolidated income statements.
(b) Amounts reclassified to net earnings primarily relate to the amortization of actuarial losses and are included in labor and fringe on the consolidated income statements. See Note 8. Employee Benefit Plans for further information.
