CSX (CSX)

GAAP Reconciliation Disclosure

CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP financial measures used to manage the company’s business that fall within the meaning of Regulation G (Disclosure of Non-GAAP Financial Measures) by the SEC may provide users of the financial information with additional meaningful comparisons to prior reported results.

CSX has provided operating income, margin and earnings per share adjusted for certain items, which are non-GAAP financial measures. The company’s management evaluates its business and makes certain operating decisions (e.g., budgeting, forecasting, employee compensation, asset management and resource allocation) using these adjusted numbers

Likewise, this information facilitates comparisons to financial results that are directly associated with ongoing business operations as well as provides comparable historical information. Lastly, earnings forecasts prepared by stock analysts and other third parties generally exclude the effects of items that are difficult to predict or measure in advance and are not directly related to CSX’s ongoing operations. A reconciliation between GAAP and the non-GAAP measure is provided. These non-GAAP measures should not be considered a substitute for GAAP measures.

GAAP Reconciliation Disclosure

CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP financial measures used to manage the company’s business that fall within the meaning of Regulation G (Disclosure of Non-GAAP Financial Measures) by the SEC may provide users of the financial information with additional meaningful comparisons to prior reported results.

CSX has provided operating income, margin and earnings per share adjusted for certain items, which are non-GAAP financial measures. The company’s management evaluates its business and makes certain operating decisions (e.g., budgeting, forecasting, employee compensation, asset management and resource allocation) using these adjusted numbers.

Likewise, this information facilitates comparisons to financial results that are directly associated with ongoing business operations as well as provides comparable historical information. Lastly, earnings forecasts prepared by stock analysts and other third parties generally exclude the effects of items that are difficult to predict or measure in advance and are not directly related to CSX’s ongoing operations. A reconciliation between GAAP and the non-GAAP measure is provided. These non-GAAP measures should not be considered a substitute for GAAP measures.

53

GAAP Reconciliation Disclosure

CSX reports its financial results in accordance with generally accepted accounting principles
(“GAAP”). However, management believes that certain non-GAAP financial measures used to
manage the company’s business that fall within the meaning of Regulation G (Disclosure of Non-
GAAP Financial Measures) by the SEC may provide users of the financial information with additional
meaningful comparisons to prior reported results.

CSX has provided operating income, ratio and earnings per share adjusted for certain items, which
are non-GAAP financial measures. The company’s management evaluates its business and makes
certain operating decisions (e.g., budgeting, forecasting, employee compensation, asset
management and resource allocation) using these adjusted numbers

Likewise, this information facilitates comparisons to financial results that are directly associated with
ongoing business operations as well as provides comparable historical information. Lastly, earnings
forecasts prepared by stock analysts and other third parties generally exclude the effects of items
that are difficult to predict or measure in advance and are not directly related to CSX’s ongoing
operations. A reconciliation between GAAP and the non-GAAP measure is provided. These non-
GAAP measures should not be considered a substitute for GAAP measures.

77

GAAP Reconciliation Disclosure

CSX reports its financial results in accordance with generally accepted accounting principles
(“GAAP”). However, management believes that certain non-GAAP financial measures used to
manage the company’s business that fall within the meaning of Regulation G (Disclosure of Non-
GAAP Financial Measures) by the SEC may provide users of the financial information with additional
meaningful comparisons to prior reported results.

CSX has provided operating income, ratio and earnings per share adjusted for certain items, which
are non-GAAP financial measures. The company’s management evaluates its business and makes
certain operating decisions (e.g., budgeting, forecasting, employee compensation, asset
management and resource allocation) using these adjusted numbers

Likewise, this information facilitates comparisons to financial results that are directly associated with
ongoing business operations as well as provides comparable historical information. Lastly, earnings
forecasts prepared by stock analysts and other third parties generally exclude the effects of items
that are difficult to predict or measure in advance and are not directly related to CSX’s ongoing
operations. A reconciliation between GAAP and the non-GAAP measure is provided. These non-
GAAP measures should not be considered a substitute for GAAP measures.

76

GAAP Reconciliation Disclosure

CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”).  However,
management believes that certain non-GAAP financial measures used to manage the company’s business that fall
within the meaning of Regulation G (Disclosure of Non-GAAP Financial Measures) by the SEC may provide users of
the financial information with additional meaningful comparisons to prior reported results.

CSX has provided operating income, operating margin and earnings per share adjusted for certain items, which are
non-GAAP financial measures.  The company’s management evaluates its business and makes certain operating
decisions (e.g. budgeting, forecasting, employee compensation, asset management, and resource allocation) using
these adjusted numbers.

Likewise, this information facilitates comparisons to financial results that are directly associated with ongoing
business operations as well as provides comparable historical information.  Lastly, earnings forecasts prepared by
stock analysts and other third parties generally exclude the effects of items that are difficult to predict or measure in
advance and are not directly related to CSX’s ongoing operations.  A reconciliation between GAAP and non-GAAP
measures is provided on the following slide.  These non-GAAP measures should not be considered a substitute for
the company’s GAAP measures.

51

GAAP Reconciliation Disclosure

CSX reports its financial results in accordance with generally accepted accounting principles (“GAAP”).  However,
management believes that certain non-GAAP financial measures used to manage the company’s business that fall
within the meaning of Regulation G (Disclosure of Non-GAAP Financial Measures) by the SEC may provide users of
the financial information with additional meaningful comparisons to prior reported results.

In press releases and presentation slides for stock analysts, CSX has provided operating income, operating ratio and
earnings per share adjusted for certain items, which are non-GAAP financial measures.  The company’s management
evaluates its business and makes certain operating decisions (e.g. budgeting, forecasting, employee compensation,
asset management, and resource allocation) using these adjusted numbers.

Likewise, this information facilitates comparisons to financial results that are directly associated with ongoing
business operations as well as provides comparable historical information.  Lastly, earnings forecasts prepared by
stock analysts and other third parties generally exclude the effects of items that are difficult to predict or measure in
advance and are not directly related to CSX’s ongoing operations.  A reconciliation between GAAP and non-GAAP
measures is provided on the following slide.  These non-GAAP measures should not be considered a substitute for
the company’s GAAP measures.

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