Percentage within which the planned allocation is managed

CSX CORPORATION  
PART IIItem 8. Financial Statements and Supplementary DataNOTE 9.  Employee Benefit Plans, continued  
The current asset allocation targets 60% growth-oriented investments and 40% immunizing investments. The growth-oriented portfolio consists of return-seeking investments that are diversified across geography, market capitalization, and asset class. The immunizing portfolio is comprised of a customized mix of fixed income and cash investments designed to reduce liability risk. Allocations are evaluated for levels within 5% of targeted allocations and are adjusted quarterly as necessary.   
    The distribution of pension plan assets as of the measurement date is shown in the table below, and these assets are reported net of pension liabilities on the balance sheet.   


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | December 2021 |  | December 2020 |
|   |   |  | Percent of |  |   |  | Percent of |
| (Dollars in Millions) | Amount |  | Total Assets |  | Amount |  | Total Assets |
| Equity | $ | 1,559  |  |  | 52  | % |  | $ | 1,324  |  |  | 44  | % |
| Fixed Income | 204  |  |  | 7  |  |  | 271  |  |  | 9  |  |
| Cash and Cash Equivalents | 49  |  |  | 1  |  |  | 221  |  |  | 8  |  |
| Growth-Oriented | $ | 1,812  |  |  | 60  | % |  | $ | 1,816  |  |  | 61  | % |
| Fixed Income | 1,145  |  |  | 38  |  |  | 1,018  |  |  | 34  |  |
| Cash and Cash Equivalents | 59  |  |  | 2  |  |  | 166  |  |  | 5  |  |
| Immunizing | $ | 1,204  |  |  | 40  | % |  | $ | 1,184  |  |  | 39  | % |
| Total | $ | 3,016  |  |  | 100  | % |  | $ | 3,000  |  |  | 100  | % |

  
Under the supervision of the Investment Committee, the investment manager selects investments or fund managers in accordance with standards of prudence applicable to asset diversification and investment suitability. The Company also selects fund managers with differing investment styles and benchmarks their investment returns against appropriate indices. Fund investment performance is continuously monitored. Acceptable performance is determined in the context of the long-term return objectives of the fund and appropriate asset class benchmarks.  
Within the Company's equity funds, domestic stock is diversified among large and small capitalization stocks. International stock is diversified in a similar manner as well as in developed versus emerging markets stocks. Guidelines established with individual managers limit investment by industry sectors, individual stock issuer concentration and the use of derivatives and CSX securities. Fixed income securities guidelines established with individual managers specify the types of allowable investments, such as government, corporate and asset-backed bonds, target certain allocation ranges for domestic and foreign investments and limit the use of certain derivatives. Additionally, guidelines stipulate minimum credit quality constraints and any prohibited securities. For detailed information regarding the fair value of pension assets, see Note 13, Fair Value Measurements.CSX 2021 Form 10-K p.85
