Casualty and catastrophic property deductible (up to)

CSX CORPORATION  
PART IIItem 8. Financial Statements and Supplementary DataNOTE 8.  Commitments and Contingencies, continued  
    The total of annual payments under the agreement, including those related to locomotive rebuilds and the long-term locomotive maintenance program, are estimated in the table below.  
    Additionally, the Company has various other commitments to purchase technology, communications, track maintenance services and materials, and other services from various suppliers. Total annual payments under all of these purchase commitments are also estimated in the table below.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in Millions) | Locomotive Maintenance & Rebuild Payments |  | OtherCommitments |  | Total |
| 2022 | $ | 205  |  |  | $ | 45  |  |  | $ | 250  |  |
| 2023 | 231  |  |  | 35  |  |  | 266  |  |
| 2024 | 273  |  |  | 31  |  |  | 304  |  |
| 2025 | 288  |  |  | 30  |  |  | 318  |  |
| 2026 | 218  |  |  | 13  |  |  | 231  |  |
| Thereafter | 1,643  |  |  | 81  |  |  | 1,724  |  |
| Total | $ | 2,858  |  |  | $ | 235  |  |  | $ | 3,093  |  |

  
Insurance    The Company maintains insurance programs with substantial limits for property damage, including resulting business interruption, and 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 $100 million per occurrence for losses from floods and named windstorms and up to $75 million per occurrence for other property losses. For third-party liability claims, the Company retains all risk up to $100 million per occurrence. As CSX negotiates insurance coverage above its full self-retention amounts, it retains a percentage of risk at various layers of coverage. 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 compensatory as well as punitive damages and others are, or are purported to be, class actions. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the legal defenses available and liabilities that have been recorded along with applicable insurance, it is currently the opinion of management that none of these pending items will have a material adverse effect on the Company's financial condition, results of operations or liquidity. An unexpected adverse resolution of one or more of these items, however, could have a material adverse effect on the Company's financial condition, results of operations or liquidity in that particular period.    CSX 2021 Form 10-K p.80
