Exhibit 12, Page 1 of 1 | ||||||||||
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NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||
Computation of Ratio of Earnings to Fixed Charges | ||||||||||
($ in millions) | ||||||||||
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| Year ended December 31, | |||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | |||||
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EARNINGS |
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Income from continuing operations before income taxes as reported | $ | 1,622 | $ | 2,750 | $ | 2,237 | $ | 2,230 | $ | 1,697 |
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Add (subtract): |
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Total interest expenses (as detailed below) |
| 499 |
| 491 |
| 520 |
| 548 |
| 552 |
Amortization of capitalized interest |
| 7 |
| 6 |
| 6 |
| 5 |
| 5 |
Income of partially owned entities (1) |
| (36) |
| (40) |
| (57) |
| (48) |
| (61) |
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Total earnings | $ | 2,092 | $ | 3,207 | $ | 2,706 | $ | 2,735 | $ | 2,193 |
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FIXED CHARGES |
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Interest expense on debt | $ | 467 | $ | 444 | $ | 441 | $ | 476 | $ | 494 |
Interest expense on unrecognized tax benefit |
| (6) |
| (15) |
| 12 |
| - -- |
| - -- |
Other interest expense |
| 1 |
| 17 |
| 15 |
| 17 |
| 6 |
Calculated interest portion of rent expense |
| 37 |
| 45 |
| 52 |
| 55 |
| 52 |
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Total interest expenses |
| 499 |
| 491 |
| 520 |
| 548 |
| 552 |
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Capitalized interest |
| 17 |
| 15 |
| 14 |
| 13 |
| 11 |
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Total fixed charges | $ | 516 | $ | 506 | $ | 534 | $ | 561 | $ | 563 |
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RATIO OF EARNINGS TO FIXED CHARGES |
| 4.05 |
| 6.34 |
| 5.07 |
| 4.88 |
| 3.90 |
(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 $7.3 million of debt guaranteed for a less than 50% owned entity.