CSX (CSX) Under Investigation: Dividend, Competition, and Future Outlook#
CSX Corporation faces a complex landscape marked by a securities fraud investigation, a recent dividend increase, and evolving competitive dynamics. While the dividend increase signals financial strength, the ongoing investigation introduces uncertainty. CSX's participation in the Barclays conference and its operational performance relative to competitors like Norfolk Southern are key factors for investors to monitor. Macroeconomic conditions and strategic responses to legal challenges and market changes will shape CSX's future.
CSX Faces Securities Fraud Investigation: What Investors Need to Know#
Details of the Securities Fraud Allegations#
CSX Corporation (NASDAQ: CSX) is currently under investigation by several law firms concerning potential violations of securities laws. This development raises significant concerns for investors and stakeholders alike. The investigations, initiated by firms such as The Schall Law Firm, focus on whether CSX issued false and/or misleading statements or failed to disclose crucial information pertinent to investors. These allegations, if proven, could have substantial financial and reputational repercussions for the company.
The Schall Law Firm, a national shareholder rights litigation firm, has announced its investigation into CSX Corporation, inviting shareholders with losses to join the inquiry. This investigation aims to determine if CSX violated securities laws by issuing misleading statements or failing to disclose critical information to investors. Similar investigations have been launched by other firms, indicating a widespread concern regarding the company's transparency and compliance with regulatory standards. The repeated announcements from different law firms underscore the seriousness of the allegations and the potential risks faced by CSX investors. According to Access Newswire, the investigation focuses on potentially misleading statements or omissions of information pertinent to investors.
The core of these investigations revolves around the premise that CSX may have misled investors through inaccurate or incomplete disclosures. Such actions can artificially inflate the company's stock price, leading to significant losses for investors when the truth is revealed. The investigations will likely scrutinize CSX's financial statements, public announcements, and internal communications to uncover any evidence of wrongdoing. The outcome of these investigations could result in substantial fines, legal fees, and a damaged reputation for CSX, further impacting investor confidence and the company's market value.
Potential Financial and Reputational Ramifications#
The potential financial ramifications of the securities fraud investigation are considerable. If CSX is found liable for securities law violations, the company could face hefty fines, legal settlements, and increased regulatory scrutiny. These financial burdens could significantly impact CSX's earnings and cash flow, potentially hindering its ability to invest in future growth initiatives or return capital to shareholders. Moreover, the investigation could lead to a decline in CSX's stock price as investors react to the uncertainty and potential risks associated with the legal proceedings.
Beyond the immediate financial costs, the reputational damage stemming from the investigation could have long-lasting effects on CSX. A tarnished reputation can erode investor confidence, making it more difficult for the company to attract capital and maintain its market position. Customers and partners may also be hesitant to associate with a company under such scrutiny, potentially leading to a loss of business and revenue. The reputational damage could also impact CSX's ability to attract and retain top talent, further weakening its competitive edge. The long-term consequences of reputational harm can be particularly challenging to overcome, requiring significant efforts to rebuild trust and restore the company's image.
The investigation introduces a considerable level of uncertainty for CSX and its investors. The duration and outcome of the legal proceedings are difficult to predict, creating an environment of speculation and market volatility. Investors may become risk-averse, leading to increased selling pressure on CSX's stock. The uncertainty surrounding the investigation could also impact CSX's strategic decision-making, as management focuses on addressing the legal challenges rather than pursuing growth opportunities. The combination of financial risks, reputational damage, and market uncertainty underscores the significant challenges facing CSX as it navigates this complex legal landscape.
CSX's Response to the Investigation#
CSX has acknowledged the ongoing investigations and has stated its commitment to fully cooperate with the relevant authorities. The company has also emphasized its adherence to ethical business practices and compliance with all applicable laws and regulations. While CSX has not provided specific details regarding the allegations, it has assured investors that it is taking the matter seriously and will vigorously defend itself against any unfounded claims.
CSX's legal strategy will likely involve conducting an internal investigation to assess the validity of the allegations and gather relevant evidence. The company will also engage external legal counsel to provide expert guidance and representation throughout the legal proceedings. CSX may attempt to negotiate a settlement with the plaintiffs to mitigate the financial and reputational risks associated with a protracted legal battle. Alternatively, the company may choose to fight the allegations in court, presenting evidence to demonstrate its compliance with securities laws and the accuracy of its disclosures.
Effective communication with investors and stakeholders is crucial for CSX as it manages the securities fraud investigation. The company needs to provide timely and transparent updates on the progress of the legal proceedings, while also reassuring investors that it is taking appropriate steps to protect their interests. CSX should also emphasize its commitment to maintaining a strong corporate governance framework and upholding ethical business practices. By proactively addressing investor concerns and maintaining open lines of communication, CSX can mitigate the negative impact of the investigation on its stock price and overall market perception.
CSX Boosts Dividend: A Sign of Financial Strength or a Risky Move?#
Analyzing the Dividend Increase: Payout Ratio and Sustainability#
CSX Corporation recently announced an increase in its dividend payout, signaling confidence in its financial performance and commitment to returning capital to shareholders. The dividend increase reflects CSX's strong cash flow generation and its ability to sustain consistent dividend payments even amidst economic uncertainties. However, investors should carefully analyze the dividend increase in the context of the ongoing securities fraud investigation and the potential financial risks facing the company.
The dividend payout ratio, which measures the proportion of earnings paid out as dividends, is a key indicator of dividend sustainability. A high payout ratio may indicate that a company is distributing a large portion of its earnings, leaving less capital for reinvestment and future growth. Conversely, a low payout ratio suggests that a company has ample room to increase its dividend payments or reinvest in its business. Investors should assess CSX's payout ratio in comparison to its peers in the railroad industry to determine if the dividend policy is sustainable given its current financial performance and future growth prospects. According to Monexa AI, CSX's payoutRatioTTM is +0.25%.
CSX's dividend policy can have a significant impact on investor sentiment and the company's stock price. A consistent and growing dividend can attract income-seeking investors and provide downside protection during market downturns. However, a dividend cut or suspension can trigger a sharp decline in the stock price as investors react negatively to the perceived financial weakness. Therefore, CSX needs to carefully manage its dividend policy to balance the needs of its shareholders with the long-term financial health of the company.
Investor Sentiment and Dividend Policy#
The dividend increase can be interpreted as a positive signal by investors, reflecting CSX's financial strength and commitment to shareholder value. However, the ongoing securities fraud investigation introduces an element of risk that investors need to consider. The potential financial liabilities and reputational damage associated with the investigation could strain CSX's financial resources and potentially jeopardize its ability to maintain its current dividend payout.
Investors should also assess CSX's dividend policy in relation to its capital allocation priorities. The company needs to balance its dividend payments with its investments in infrastructure, technology, and other strategic initiatives that drive long-term growth. If CSX prioritizes dividend payments over essential investments, it could compromise its future competitiveness and financial performance. Therefore, investors should carefully evaluate CSX's capital allocation strategy to ensure that it is aligned with the company's long-term growth objectives.
The sustainability of CSX's dividend policy depends on its ability to generate consistent cash flow and maintain a healthy financial position. Factors such as economic conditions, freight volumes, and operational efficiency can all impact CSX's cash flow generation. Investors should closely monitor these factors to assess the long-term sustainability of the dividend policy. Additionally, investors should consider the potential impact of unforeseen events, such as natural disasters or regulatory changes, on CSX's financial performance and dividend payout.
CSX at Barclays Conference: Navigating Challenges and Opportunities#
Key Takeaways from the Barclays Conference Presentation#
CSX Corporation recently participated in the Barclays 42nd Annual Industrial Select Conference, providing insights into the company's strategic priorities, operational performance, and outlook for the future. The conference presentation offered valuable information for investors seeking to understand CSX's approach to navigating current challenges and capitalizing on emerging opportunities in the railroad industry.
During the conference, CSX management likely addressed key topics such as the ongoing securities fraud investigation, the company's dividend policy, and its competitive positioning in the market. The presentation may have also covered CSX's efforts to improve operational efficiency, invest in technology, and adapt to changing freight demand patterns. Investors should carefully analyze the conference presentation to gain a comprehensive understanding of CSX's current situation and future prospects. According to Seeking Alpha, Joseph Hinrichs, President & Chief Executive Officer, and Sean Pelkey, Executive Vice President & Chief Financial Officer, represented CSX at the conference.
The Barclays Industrial Select Conference provides a platform for CSX to engage with institutional investors, analysts, and other industry stakeholders. The conference presentation allows CSX to communicate its strategic vision, address investor concerns, and provide updates on its financial performance and operational initiatives. The conference also offers an opportunity for investors to ask questions and gain further clarity on key issues facing the company.
CSX's Strategic Priorities#
CSX's strategic priorities likely focus on improving operational efficiency, enhancing customer service, and expanding its market share in key sectors. The company may emphasize its commitment to precision scheduled railroading (PSR), a strategy aimed at optimizing network utilization and reducing operating costs. CSX may also highlight its investments in technology, such as advanced analytics and automation, to improve efficiency and enhance safety.
Another strategic priority for CSX is likely to be adapting to changing freight demand patterns. The company may discuss its efforts to diversify its commodity mix, expand its intermodal business, and capitalize on growth opportunities in emerging sectors such as e-commerce and renewable energy. CSX may also emphasize its commitment to sustainability, highlighting its efforts to reduce emissions and promote environmentally responsible practices.
CSX's management team likely addressed the challenges posed by the ongoing securities fraud investigation and the potential competitive impacts of the CPKC/KCS merger. The company may outline its legal strategy, emphasize its commitment to ethical business practices, and reassure investors that it is taking appropriate steps to protect their interests. CSX may also discuss its plans to enhance its competitive position in the face of the CPKC/KCS merger, such as improving service quality, optimizing its network, and forging strategic partnerships.
CSX vs. Norfolk Southern: A Deep Dive into Operational Efficiency#
Carload Volume Comparison: CSX vs. Norfolk Southern#
Operational efficiency is a critical factor in the success of railroad companies, impacting profitability, customer satisfaction, and overall competitiveness. Comparing CSX's operational metrics with those of its main competitor, Norfolk Southern (NSC), provides valuable insights into their relative strengths and weaknesses. Key metrics for comparison include carload volume, train speed, and dwell time.
Carload volume measures the number of railcars transported by a railroad company over a given period. A higher carload volume indicates stronger demand for the company's services and greater revenue generation. However, it's essential to consider the commodity mix and the average revenue per carload to assess the profitability of the carload volume. Investors should compare CSX's carload volume with that of Norfolk Southern to determine which company is capturing a larger share of the freight market.
Norfolk Southern's Intermodal units handled in 2024: 4.1 million (a 7% increase on 2023). Intermodal train speed increased 3.1% in Q4 2024. Norfolk Southern has implemented operational enhancements, including a 10% increase in average train speed and a 15% reduction in terminal dwell time.
Carload volume is affected by a multitude of factors, including economic conditions, seasonal demand, and the competitive landscape. Both CSX and Norfolk Southern face ongoing challenges in the coal market, which has seen declining demand due to the shift towards renewable energy sources. However, both companies have also experienced growth in other commodity segments, such as intermodal and chemicals. Investors should analyze the carload volume trends in different commodity segments to understand the underlying drivers of growth and the potential risks facing each company.
Train Speed and Dwell Time Analysis#
Train speed measures the average speed of trains traveling across a railroad network. Higher train speeds indicate greater efficiency and faster delivery times, which can enhance customer satisfaction and attract more business. However, increasing train speeds can also lead to higher fuel consumption and increased maintenance costs. Therefore, railroad companies need to balance train speed with fuel efficiency and cost control.
Dwell time measures the amount of time that railcars spend at terminals and other locations along the network. Lower dwell times indicate greater efficiency and faster turnaround times, which can improve network capacity and reduce congestion. However, reducing dwell times can also require significant investments in infrastructure, technology, and operational processes. Investors should compare CSX's train speed and dwell time with those of Norfolk Southern to assess their relative operational efficiency.
CSX will increase train speeds from 25 mph to 40 mph between mileposts WAT 131 and WAT 138 in Readfield, Maine, phased in over 30-90 days. CSX upgraded 481 miles of track in Maine, allowing speeds up to 40 mph (previously 10 mph). CSX's velocity is 17.8 mph and Terminal Dwell is 11.7 hours. According to CSX, these metrics are key measures the company uses to track its operational performance.
Key Drivers of Efficiency Differences#
Differences in network infrastructure, operating strategies, and commodity mix can all contribute to variations in operational efficiency between CSX and Norfolk Southern. CSX has implemented precision scheduled railroading (PSR), a strategy aimed at optimizing network utilization and reducing operating costs. Norfolk Southern has also implemented operational enhancements, including a 10% increase in average train speed and a 15% reduction in terminal dwell time. According to Freight Waves, Norfolk Southern is poised for opportunistic growth in 2025, partly due to its operational improvements.
Investors should analyze the capital expenditure plans of both CSX and Norfolk Southern to understand their investments in network infrastructure and technology. These investments can have a significant impact on their operational efficiency and long-term competitiveness. Additionally, investors should monitor the implementation of new technologies and operational processes to assess their effectiveness in improving train speed, dwell time, and overall network capacity.
Terminal dwell: 22.1 hours, a 10% improvement over Q4 2023 (24.6 hours). Car miles per day: 118, a 13% increase from the previous year (104). Train speed: 22.6 mph, a 9% improvement from Q4 2023 (20.8 mph). Norfolk Southern's improved operational metrics (dwell time, train speed) could translate to increased efficiency and potential cost savings. According to Railway Age, these improvements reflect solid performance in Q4 2024.
Economic Headwinds: How Macroeconomic Factors Impact CSX's Performance#
Impact of Interest Rates and Inflation on Freight Demand#
Macroeconomic conditions, such as interest rates, inflation, and GDP growth, can significantly impact CSX's freight volumes and revenue. Higher interest rates and inflation can dampen consumer spending and business investment, leading to lower freight demand. Conversely, stronger GDP growth typically boosts freight volumes as businesses increase production and transportation activities.
Interest rate hikes can reduce economic activity by increasing the cost of borrowing for businesses and consumers. This can lead to a decline in investment, production, and consumer spending, which in turn reduces the demand for freight transportation services. CSX may experience lower carload volumes and revenue in an environment of rising interest rates.
Inflation can erode consumer spending power and increase operating costs for businesses. Higher prices for goods and services can reduce consumer demand, leading to lower production and transportation activities. Additionally, inflation can increase CSX's operating costs, such as fuel, labor, and materials, which can negatively impact its profitability. In an inflationary environment, CSX may need to raise prices to offset its increased costs, which could further dampen freight demand.
GDP Growth and its Effect on CSX's Revenue#
GDP growth, which measures the overall health of the economy, is a key driver of freight demand. Stronger GDP growth typically leads to increased business investment, production, and consumer spending, which in turn boosts the demand for freight transportation services. CSX may experience higher carload volumes and revenue in an environment of robust GDP growth.
Macroeconomic factors can also impact the commodity mix transported by CSX. For example, higher energy prices can increase the demand for coal transportation, while lower housing starts can reduce the demand for lumber transportation. Investors should monitor macroeconomic trends and their potential impact on the commodity mix transported by CSX to assess the company's exposure to economic cycles.
The outlook for macroeconomic conditions is subject to considerable uncertainty, making it challenging for CSX to forecast its future freight volumes and revenue. Factors such as government policies, global events, and technological changes can all impact the economy and the demand for freight transportation services. CSX needs to closely monitor macroeconomic trends and adapt its strategies to mitigate the risks and capitalize on the opportunities presented by changing economic conditions.
Insider Trading at CSX: What Are Executives Signaling?#
Recent Insider Purchases and Sales of CSX Stock#
Insider trading activity, which involves the purchase and sale of a company's stock by its executives and directors, can provide valuable insights into management's confidence in the company's future prospects. Insider purchases typically signal that executives believe the stock is undervalued and has the potential to appreciate, while insider sales may indicate that executives believe the stock is overvalued or that they have concerns about the company's future performance.
The Securities and Exchange Commission (SEC) requires insiders to report their trading activity on Form 4 within two business days of the transaction. Investors can access this information on the SEC's website or through various financial data providers. Analyzing insider trading activity can provide a glimpse into management's sentiment and future expectations for the company.
It's essential to consider the context of insider trades when interpreting their significance. Factors such as the size of the trades, the timing of the trades, and the individual circumstances of the insiders can all influence the interpretation of insider trading activity. For example, a large purchase by the CEO may be a more significant signal than a small sale by a lower-level executive.
Interpreting Insider Trading Trends#
A pattern of consistent insider buying over a period of time can be a strong signal of management's confidence in the company's future prospects. This may indicate that executives believe the stock is undervalued and has the potential to appreciate significantly. However, it's essential to consider the overall market conditions and company-specific news when interpreting insider buying activity. A single large purchase may not be as significant as a series of smaller purchases over time.
Conversely, a pattern of consistent insider selling can raise concerns about management's outlook for the company. This may indicate that executives believe the stock is overvalued or that they have concerns about the company's future performance. However, it's essential to consider the individual circumstances of the insiders when interpreting insider selling activity. For example, an executive may be selling stock to diversify their portfolio or to fund a personal expense.
Investors should also consider the ratio of insider buying to selling when analyzing insider trading activity. A high ratio of buying to selling typically indicates greater management confidence, while a low ratio may suggest greater concern. However, it's essential to consider the absolute volume of trading as well as the ratio. A high ratio based on a small volume of trading may not be as significant as a lower ratio based on a large volume of trading.
The CPKC/KCS Merger: A Looming Threat to CSX's Market Share?#
The Competitive Landscape Post-Merger#
The proposed merger of Canadian Pacific Kansas City (CPKC) and Kansas City Southern (KCS) could have significant implications for the competitive landscape of the North American railroad industry. The merger would create the first single-line rail network linking Canada, the United States, and Mexico, potentially intensifying competition for CSX in certain markets.
The CPKC/KCS merger could create a larger and more integrated rail network, allowing the merged company to offer more efficient and cost-effective transportation services to customers. This could put pressure on CSX to lower its prices or improve its service quality to remain competitive. The merger could also lead to increased competition for key freight routes and commodities, potentially impacting CSX's carload volumes and revenue.
The Surface Transportation Board (STB) is currently reviewing the proposed merger, and its decision could have a significant impact on the competitive landscape. The STB may impose conditions on the merger to mitigate potential anti-competitive effects, such as requiring CPKC/KCS to maintain open access to its network or to divest certain assets. The outcome of the STB review is uncertain, and investors should closely monitor the proceedings to assess the potential impact on CSX.
Impact on Freight Routes and Pricing#
The CPKC/KCS merger could impact CSX's freight routes and pricing in several ways. The merged company could offer more direct and efficient routes between Canada, the United States, and Mexico, potentially diverting traffic from CSX's network. The merger could also lead to increased pricing pressure on certain routes as CPKC/KCS seeks to capture market share.
CSX may need to adjust its pricing and service offerings to remain competitive in the face of the CPKC/KCS merger. The company may need to lower its prices on certain routes, improve its service quality, or offer new value-added services to attract and retain customers. CSX may also need to forge strategic partnerships with other railroads to expand its network reach and offer more competitive transportation solutions.
CSX's ability to adapt to the changing competitive landscape will depend on its operational efficiency, customer relationships, and strategic decision-making. The company needs to continue investing in its network infrastructure, technology, and workforce to improve its efficiency and enhance its service quality. CSX also needs to maintain strong relationships with its customers and understand their evolving transportation needs. By proactively addressing the challenges and opportunities presented by the CPKC/KCS merger, CSX can mitigate the potential negative impacts and maintain its market position.
Baltimore Bridge Collapse and Southeastern Flooding: Assessing the Impact on CSX#
Short-Term Disruptions and Long-Term Implications#
Recent events such as the collapse of the Baltimore bridge and severe flooding in the southeastern United States have created significant disruptions to transportation networks and supply chains. These events could have both short-term and long-term implications for CSX's operations and financial performance.
The collapse of the Baltimore bridge has closed the Port of Baltimore, a major hub for freight transportation. This closure could disrupt CSX's intermodal traffic and impact its ability to transport goods to and from the port. The duration of the port closure is uncertain, and investors should monitor the situation closely to assess the potential impact on CSX's revenue and earnings.
Severe flooding in the southeastern United States has also disrupted transportation networks, including rail lines. This flooding could impact CSX's ability to transport goods through the affected areas, leading to delays and increased operating costs. The extent of the damage to rail infrastructure is still being assessed, and investors should monitor the situation to understand the potential impact on CSX's operations.
Mitigating Strategies for Operational Challenges#
The Baltimore bridge collapse and southeastern flooding could have a negative impact on CSX's Q1 2025 earnings. The disruptions to transportation networks could lead to lower carload volumes, increased operating costs, and reduced revenue. The extent of the impact will depend on the duration of the port closure and the severity of the damage to rail infrastructure.
In the long term, these events could also impact CSX's strategic planning and capital allocation decisions. The company may need to invest in alternative routes or infrastructure improvements to mitigate the risks associated with future disruptions. CSX may also need to reassess its supply chain strategies and diversify its transportation options to reduce its reliance on specific ports or rail lines.
CSX's ability to mitigate the impact of these events will depend on its operational resilience, contingency planning, and communication with customers. The company needs to have robust contingency plans in place to reroute traffic, manage delays, and minimize disruptions to its customers. CSX also needs to communicate effectively with its customers to keep them informed of the situation and to coordinate transportation solutions.
CSX's Strategic Response to Legal Challenges and Economic Uncertainty#
Strengthening Legal Defense and Optimizing Operations#
In light of the ongoing securities fraud investigation and the prevailing economic uncertainties, CSX Corporation must adopt a proactive and adaptive strategic approach to navigate these challenges effectively. This involves strengthening its legal defense, optimizing its operational efficiency, and enhancing its financial resilience.
CSX's primary focus should be on defending itself against the securities fraud allegations and mitigating the potential financial and reputational damage. This requires a robust legal strategy, thorough internal investigations, and transparent communication with investors and stakeholders. CSX should also explore settlement options to minimize the long-term impact of the legal proceedings.
To navigate economic uncertainties, CSX needs to optimize its operational efficiency and reduce its operating costs. This can be achieved through initiatives such as precision scheduled railroading (PSR), technology investments, and workforce optimization. By improving its efficiency, CSX can enhance its profitability and maintain its competitiveness even in a challenging economic environment.
Enhancing Financial Resilience and Communication#
CSX needs to enhance its financial resilience by maintaining a strong balance sheet, managing its debt levels, and generating consistent cash flow. This will allow the company to weather economic downturns and invest in future growth opportunities. CSX should also consider diversifying its revenue streams and expanding its presence in emerging markets to reduce its reliance on specific commodities or geographic regions.
Effective communication with investors and stakeholders is crucial for maintaining confidence and trust. CSX needs to provide timely and transparent updates on the progress of the securities fraud investigation, its financial performance, and its strategic initiatives. The company should also engage with investors to address their concerns and answer their questions.
By adopting a proactive and adaptive strategic approach, CSX can navigate the legal challenges and economic uncertainties facing the company and position itself for long-term success. This requires a commitment to ethical business practices, operational excellence, and financial discipline. CSX's management team needs to demonstrate strong leadership and make sound decisions to guide the company through these turbulent times.
Key Takeaways#
- Securities Law Investigation: The ongoing securities fraud investigation presents a significant risk to CSX, potentially leading to substantial financial penalties and reputational damage. Investors should closely monitor the progress of the investigation and its potential impact on CSX's financial performance.
- Dividend Policy: CSX's recent dividend increase signals financial strength and commitment to shareholder value. However, investors should assess the sustainability of the dividend policy in light of the ongoing securities fraud investigation and potential economic headwinds.
- Competitive Landscape: The proposed CPKC/KCS merger could intensify competition for CSX in certain markets. CSX needs to proactively adapt its strategies to maintain its market position and mitigate the potential negative impacts of the merger.
- Operational Efficiency: Improving operational efficiency is crucial for CSX to enhance its profitability and competitiveness. Investors should monitor CSX's operational metrics, such as carload volume, train speed, and dwell time, to assess its progress in this area.
- Macroeconomic Factors: Macroeconomic conditions, such as interest rates, inflation, and GDP growth, can significantly impact CSX's freight volumes and revenue. CSX needs to closely monitor these trends and adapt its strategies to mitigate the risks and capitalize on the opportunities presented by changing economic conditions.
Financial Tables#
Here is a table summarizing CSX's key financial ratios:
| Ratio | Value |
|---|---|
| Dividend Yield TTM | 1.53% |
| P/E Ratio TTM | 17.06 |
| Payout Ratio TTM | 0.25 |
| Debt Equity Ratio TTM | 1.47 |
| Price to Sales Ratio TTM | 4.21 |
Here is a table summarizing analyst estimates for CSX:
| Metric | 2026 Estimate | Q4 2029 Estimate |
|---|---|---|
| EPS | 2.10 | 0.74 |
| Revenue (in B) | 15.4 | N/A |