EX-7 8 nscex12s.htm NSC 2008 Form 10-K, Exhibit 12

Exhibit 12, Page 1 of 1

 

 

 

 

 

 

 

 

 

 

 

NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

2008

2007

2006

2005

2004

 

 

 

 

 

 

 

 

 

 

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes as reported

$

2,750 

$

2,237 

$

2,230 

$

1,697 

$

1,289 

 

 

 

 

 

 

 

 

 

 

 

Add (subtract):

 

 

 

 

 

 

 

 

 

 

   Total interest expenses (as detailed below)

 

491 

 

520 

 

548 

 

552 

 

567 

   Amortization of capitalized interest

 

 

 

 

 

   Income of partially owned entities (1)

 

(40)

 

(57)

 

(48)

 

(61)

 

(58)

 

 

 

 

 

 

 

 

 

 

 

Total earnings

$

3,207 

$

2,706 

$

2,735 

$

2,193 

$

1,803 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

Interest expense on debt

$

444 

$

441 

$

476 

$

494 

$

489 

Interest expense on unrecognized tax benefit

 

(15)

 

12 

 

-- 

 

-- 

 

-- 

Other interest expense

 

17 

 

15 

 

17 

 

 

18 

Calculated interest portion of rent expense

 

45 

 

52 

 

55 

 

52 

 

45 

NS' share of Conrail interest

 

-- 

 

-- 

 

-- 

 

-- 

 

15 

 

 

 

 

 

 

 

 

 

 

 

Total interest expenses

 

491 

 

520 

 

548 

 

552 

 

567 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

15 

 

14 

 

13 

 

11 

 

10 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

$

506 

$

534 

$

561 

$

563 

$

577 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

6.34 

 

5.07 

 

4.88 

 

3.90 

 

3.12 

 

(1) Includes: (a) the distributed income of equity investees, net of equity earnings included in income from continuing operations before income taxes as reported and the minority income of consolidated entities which have fixed charges; and, for the periods before the Conrail Corporate Reorganization, (b) NS' share of Conrail's income before income taxes, net of equity in earnings of Conrail included in NS' income from continuing operations before taxes as reported.

 

The computations do not include $0.3 million of interest expense related to $7.8 million of debt guaranteed for a less than 50% owned entity.