EX-12 6 nsc201610-kexhibit122.htm EXHIBIT 12 Exhibit


Exhibit 12
Norfolk Southern Corporation and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
2017
 
2016
 
2015
 
2014
 
2013
 
($ in millions)
 
 
 
 
 
 
 
 
 
 
 
EARNINGS
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income
 
 
 
 
 
 
 
 
 
 
taxes as reported
$
3,128

$
2,582

$
2,442

$
3,134

$
2,965

 
 
 
 
 
 
 
 
 
 
 
Add (subtract):
 
 
 
 
 
 
 
 
 
 
Total interest expenses (as detailed below)
 
588

 
602

 
584

 
592

 
576

Amortization of capitalized interest
 
13

 
12

 
12

 
11

 
12

Income of partially owned entities(1)
 
(220
)
 
(61
)
 
(50
)
 
(46
)
 
(51
)
Total earnings
$
3,509

$
3,135

$
2,988

$
3,691

$
3,502

 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
Interest expense on debt
$
550

$
563

$
545

$
545

$
525

Interest expense on unrecognized tax benefit
 

 
1

 
(3
)
 
1

 
1

Other interest expense
 
8

 
6

 
7

 
11

 
11

Calculated interest portion of rent expense(2)
 
30

 
32

 
35

 
35

 
39

Total interest expenses
 
588

 
602

 
584

 
592

 
576

 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
20

 
20

 
21

 
19

 
18

Total fixed charges
$
608

$
622

$
605

$
611

$
594

 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
 
5.77

 
5.04

 
4.94

 
6.04

 
5.90


(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.