EX-12 10 nsc201610-kexhibit12.htm EXHIBIT 12 Exhibit


Exhibit 12
Norfolk Southern Corporation and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EARNINGS
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income
 
 
 
 
 
 
 
 
 
 
taxes as reported
$
2,582

$
2,442

$
3,134

$
2,965

$
2,758

 
 
 
 
 
 
 
 
 
 
 
Add (subtract):
 
 
 
 
 
 
 
 
 
 
Total interest expenses (as detailed below)
 
602

 
584

 
592

 
576

 
546

Amortization of capitalized interest
 
12

 
12

 
11

 
12

 
10

Income of partially owned entities(1)
 
(61
)
 
(50
)
 
(46
)
 
(51
)
 
(45
)
Total earnings
$
3,135

$
2,988

$
3,691

$
3,502

$
3,269

 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
Interest expense on debt
$
563

$
545

$
545

$
525

$
495

Interest expense on unrecognized tax benefit
 
1

 
(3
)
 
1

 
1

 
(1
)
Other interest expense
 
6

 
7

 
11

 
11

 
10

Calculated interest portion of rent expense(2)
 
32

 
35

 
35

 
39

 
42

Total interest expenses
 
602

 
584

 
592

 
576

 
546

 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
20

 
21

 
19

 
18

 
20

Total fixed charges
$
622

$
605

$
611

$
594

$
566

 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
 
5.04

 
4.94

 
6.04

 
5.90

 
5.78


(1) Represents undistributed income of equity investees included in income from continuing operations before income taxes as reported.
(2) Interest component of leases includes one-third of rental expense which approximates the interest component of operating leases.