EX-12 5 nsc_ex12.htm EXHIBIT 12 nsc_ex12.htm
 
Exhibit 12
 
 
Computation of Ratio of Earnings to Fixed Charges
 
 
The table below sets forth our ratio of earnings to fixed charges on a consolidated basis for each of the time periods indicated.  This ratio shows the extent to which our business generates enough earnings after the payment of all expenses other than interest to make required interest payments on our debt.
 
 
     Six Months Ended June 30,      
Year Ended December 31,
 
     2010      
2009
     
2008
     
2007
     
2006
     
2005
 
     ($ in millions)  
Earnings:
                                             
Income from continuing operations before income taxes as reported
$ 1,091      $ 1,622     $ 2,750     $ 2,237     $ 2,230     $ 1,697  
Add (subtract):
                                             
Total interest expenses (as detailed below)
  264       499       491       520       548       552  
Amortization of capitalized interest
   3       7       6       6       5       5  
Income of partially owned entities(1)
  (22     (36 )     (40 )     (57 )     (48 )     (61 )
Total earnings
$  1,336      $ 2,092     $ 3,207     $ 2,706     $ 2,735     $ 2,193  
                                               
Fixed charges:
                                             
Interest expense on debt
$ 234      $ 467     $ 444     $ 441     $ 476     $ 494  
Interest expense on unrecognized tax benefit
  2       (6 )     (15 )     12       --       --  
Other interest expense
  8       1       17       15       17       6  
Calculated interest portion of rent expense
  20       37       45       52       55       52  
Total interest expenses
  264       499       491       520       548       552  
Capitalized interest
  7       17       15       14       13       11  
Total fixed charges
$ 271      $ 516     $ 506     $ 534     $ 561     $ 563  
Ratio of Earnings to Fixed Charges
  4.93x       4.05x       6.34x       5.07x       4.88x       3.90x  
 

(1)
(1) Includes 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.
 
The computations do not include $0.1 million of interest expense related to $7.3 million of debt guaranteed for a less than 50% owned entity.