Cost method, maximum percentage

CSX CORPORATION  
PART IIItem 8. Financial Statements and Supplementary DataNOTE 1.  Nature of Operations and Significant Accounting Policies, continued  
Basis of PresentationIn the opinion of management, the accompanying consolidated financial statements contain all normal, recurring adjustments necessary to fairly present the financial position of CSX and its subsidiaries at December 31, 2021 and December 31, 2020, and the consolidated statements of income, comprehensive income, cash flows and changes in shareholders’ equity for fiscal years 2021, 2020 and 2019. Where applicable, prior year information has been reclassified to conform to current presentation. In addition, management has evaluated and disclosed all material events occurring subsequent to the date of the financial statements up to the date this annual report is filed on Form 10-K.  
Common Stock Split On June 4, 2021, CSX announced a three-for-one split of the Company’s common stock in the form of a stock dividend. Each shareholder of record on June 18, 2021, received two additional shares of common stock for each share held as of this record date. The new shares were distributed after close of trading on June 28, 2021. All prior period share and per share amounts, common stock, other capital, and retained earnings presented herein have been retroactively adjusted to reflect the impact of the stock split. Proportional adjustments were also made to outstanding awards under the Company's stock-based compensation plans.  
Use of Estimates    The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates in reporting the amounts of certain assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of certain revenues and expenses during the reporting period. Actual results may differ from those estimates. Critical accounting estimates using management judgment are made for the following areas:•personal injury and environmental reserves (see Note 5, Casualty, Environmental and Other Reserves);•pension and post-retirement medical plan accounting (see Note 9, Employee Benefit Plans);•depreciation policies for assets under the group-life method (see Note 6, Properties); and•goodwill and other intangible assets (see Note 17, Business Combinations and Note 18, Goodwill and Other Intangibles - Net).  
Fiscal YearThe Company's fiscal periods are based upon the calendar year. Except as otherwise specified, references to full years indicate CSX’s fiscal years ended on December 31, 2021, December 31, 2020, and December 31, 2019.    Principles of Consolidation    The consolidated financial statements include results of operations of CSX and subsidiaries over which CSX has majority ownership or financial control. All significant intercompany accounts and transactions have been eliminated. Most investments in companies that were not majority-owned were carried at cost (if less than 20% owned and the Company has no significant influence) or were accounted for under the equity method (if the Company has significant influence but does not have control). These investments are reported within Investment in Affiliates and Other Companies on the consolidated balance sheets.  
CSX 2021 Form 10-K p.58
