Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | NORFOLK SOUTHERN CORP |
Entity Central Index Key | 702,165 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 289,782,660 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Railway operating revenues | $ 2,575 | $ 2,420 |
Railway operating expenses: | ||
Compensation and benefits | 743 | 723 |
Purchased services and rents | 377 | 379 |
Fuel | 213 | 149 |
Depreciation | 259 | 252 |
Materials and other | 210 | 194 |
Total railway operating expenses | 1,802 | 1,697 |
Income from railway operations | 773 | 723 |
Other income – net | 24 | 16 |
Interest expense on debt | 142 | 139 |
Income before income taxes | 655 | 600 |
Provision for income taxes | 222 | 213 |
Net income | $ 433 | $ 387 |
Per share amounts: | ||
Basic (in dollars per share) | $ 1.49 | $ 1.30 |
Diluted (in dollars per share) | 1.48 | 1.29 |
Dividends (in dollars per share) | $ 0.61 | $ 0.59 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 433 | $ 387 |
Other comprehensive income, before tax: | ||
Reclassification adjustments for costs included in net income | 7 | 7 |
Other comprehensive income (loss) before tax | 5 | 6 |
Income tax expense related to reclassification adjustments for costs included in net income | (3) | (3) |
Other comprehensive income, net of tax | 2 | 3 |
Total comprehensive income | 435 | 390 |
Accumulated Other Comprehensive Loss Equity Investees | ||
Other comprehensive income, before tax: | ||
Other comprehensive income (loss) before tax | $ (2) | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 955 | $ 956 |
Accounts receivable – net | 998 | 945 |
Materials and supplies | 281 | 257 |
Other current assets | 93 | 133 |
Total current assets | 2,327 | 2,291 |
Investments | 2,809 | 2,777 |
Properties less accumulated depreciation of $11,872 and $11,737 respectively | 29,927 | 29,751 |
Other assets | 82 | 73 |
Total assets | 35,145 | 34,892 |
Liabilities and stockholders’ equity | ||
Accounts payable | 1,211 | 1,215 |
Short-term debt | 0 | 100 |
Income and other taxes | 379 | 245 |
Other current liabilities | 303 | 229 |
Current maturities of long-term debt | 550 | 550 |
Total current liabilities | 2,443 | 2,339 |
Long-term debt | 9,569 | 9,562 |
Other liabilities | 1,407 | 1,442 |
Deferred income taxes | 9,199 | 9,140 |
Total liabilities | 22,618 | 22,483 |
Stockholders’ equity: | ||
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 289,782,660 and 290,417,610 shares, respectively, net of treasury shares | 291 | 292 |
Additional paid-in capital | 2,228 | 2,179 |
Accumulated other comprehensive loss | (485) | (487) |
Retained income | 10,493 | 10,425 |
Total stockholders’ equity | 12,527 | 12,409 |
Total liabilities and stockholders’ equity | $ 35,145 | $ 34,892 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Properties, accumulated depreciation | $ 11,872 | $ 11,737 |
Common stock, par or stated value per share | $ 1 | $ 1 |
Common stock, shares authorized | 1,350,000,000 | 1,350,000,000 |
Common stock, shares outstanding, net of treasury shares | 289,782,660 | 290,417,610 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 433 | $ 387 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation | 260 | 253 |
Deferred income taxes | 56 | 44 |
Gains and losses on properties | (9) | (2) |
Changes in assets and liabilities affecting operations: | ||
Accounts receivable | (53) | (15) |
Materials and supplies | (24) | (44) |
Other current assets | 31 | 84 |
Current liabilities other than debt | 188 | 200 |
Other – net | (36) | (28) |
Net cash provided by operating activities | 846 | 879 |
Cash flows from investing activities: | ||
Property additions | (438) | (398) |
Property sales and other transactions | 35 | 12 |
Investment purchases | (2) | (23) |
Investment sales and other transactions | 1 | 1 |
Net cash used in investing activities | (404) | (408) |
Cash flows from financing activities: | ||
Dividends | (177) | (176) |
Common stock transactions | 34 | (7) |
Purchase and retirement of common stock | (200) | (200) |
Debt repayments | (100) | (600) |
Net cash used in financing activities | (443) | (983) |
Net decrease in cash and cash equivalents | (1) | (512) |
Cash and cash equivalents: | ||
At beginning of year | 956 | 1,101 |
At end of period | 955 | 589 |
Supplemental disclosures of cash flow information: | ||
Interest (net of amounts capitalized) | 70 | 70 |
Income taxes (net of refunds) | $ 12 | $ 2 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation First Quarter 2017 2016 ($ in millions) Stock-based compensation expense $ 27 $ 27 Total tax benefit 30 14 During the first quarter of 2017 , a committee of nonemployee members of our Board of Directors (or the Chief Executive Officer when delegated authority by such committee) granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP) and granted stock options pursuant to the Thoroughbred Stock Option Plan (TSOP), as follows: Granted Weighted-Average Grant-Date Fair Value Stock options: LTIP 341,120 $ 37.73 TSOP 144,440 31.33 Total 485,560 Restricted stock units 80,360 120.25 Performance share units 284,953 86.91 Stock Options The options granted under the LTIP and the TSOP have a term that will not exceed ten years and may not be exercised prior to the fourth and third anniversaries of the date of grant, respectively, or if the optionee retires or dies before that anniversary date, may not be exercised before the later of one year after the grant date or the date of the optionee’s retirement or death. Holders of the options granted under the LTIP who remain actively employed receive cash dividend equivalent payments for four years in an amount equal to the regular quarterly dividends paid on Norfolk Southern common stock (Common Stock). Dividend equivalent payments are not made on the TSOP options. The fair value of each option award was measured on the date of grant using a binomial lattice-based option valuation model. Expected volatility is based on implied volatility from traded options on, and historical volatility of, Common Stock. Historical data is used to estimate option exercises within the valuation model. The average expected option life is derived from the output of the valuation model and represents the period of time that all options granted are expected to be outstanding, including the branches of the model that result in options expiring unexercised. The average risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. A dividend yield of zero was used for the LTIP options during the vesting period. A dividend yield of 2.04% was used for all vested LTIP options and all TSOP options. The assumptions for the 2017 LTIP and TSOP grants are shown in the following table: Average expected volatility 26% Average risk-free interest rate 2.51% Average expected option term LTIP 8.6 years Average expected option term TSOP 8.3 years Per-share grant price LTIP and TSOP $ 120.25 First Quarter 2017 2016 ($ in millions) Stock options exercised 885,722 213,914 Cash received upon exercise $ 49 $ 10 Related tax benefit realized $ 16 $ 1 Restricted Stock Units RSUs primarily have a five-year restriction period and will be settled through the issuance of shares of Common Stock. The RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to regular quarterly dividends paid on Common Stock. First Quarter 2017 2016 ($ in millions) RSUs vested 137,200 175,500 Common Stock issued net of tax withholding 81,318 103,936 Related tax benefit realized $ 3 $ — Performance Share Units PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three -year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model. First Quarter 2017 2016 ($ in millions) PSUs earned 171,080 406,038 Common Stock issued net of tax withholding 99,805 241,757 Related tax benefit realized $ 1 $ 3 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the calculation of basic and diluted earnings per share: Basic Diluted First Quarter 2017 2016 2017 2016 ($ in millions, except per share amounts, shares in millions) Net income $ 433 $ 387 $ 433 $ 387 Dividend equivalent payments (1 ) (1 ) (1 ) (1 ) Income available to common stockholders $ 432 $ 386 $ 432 $ 386 Weighted-average shares outstanding 290.3 297.2 290.3 297.2 Dilutive effect of outstanding options and share-settled awards 2.5 1.7 Adjusted weighted-average shares outstanding 292.8 298.9 Earnings per share $ 1.49 $ 1.30 $ 1.48 $ 1.29 During the first quarter s of 2017 and 2016 , dividend equivalent payments were made to holders of LTIP stock options and RSUs. For purposes of computing basic earnings per share, dividend equivalent payments made to holders of these stock options and RSUs were deducted from net income to determine income available to common stockholders. For purposes of computing diluted earnings per share, we evaluate on a grant-by-grant basis those stock options and RSUs receiving dividend equivalent payments under the two-class and treasury stock methods to determine which method is the more dilutive for each grant. For those grants for which the two-class method was more dilutive, net income was reduced by dividend equivalent payments to determine income available to common stockholders. The dilution calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows: 0.5 million in 2017 and 1.5 million in 2016 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in the cumulative balances of “Accumulated other comprehensive loss” reported in the Consolidated Balance Sheets consisted of the following: Balance at Beginning of Year Net Loss Reclassification Adjustments Balance at End of Period ($ in millions) Three months ended March 31, 2017 Pensions and other postretirement liabilities $ (414 ) $ — $ 4 (1) $ (410 ) Other comprehensive loss of equity investees (73 ) (2 ) — (75 ) Accumulated other comprehensive loss $ (487 ) $ (2 ) $ 4 $ (485 ) Three months ended March 31, 2016 Pensions and other postretirement liabilities $ (367 ) $ — $ 4 (1) $ (363 ) Other comprehensive loss of equity investees (78 ) (1 ) — (79 ) Accumulated other comprehensive loss $ (445 ) $ (1 ) $ 4 $ (442 ) (1) These items are included in the computation of net periodic pension and postretirement benefit costs. See Note 6, “Pensions and Other Postretirement Benefits,” for additional information. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2017 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program We repurchased and retired 1.7 million and 2.6 million shares of Common Stock under our stock repurchase program in the first quarters of 2017 and 2016 , respectively, at a cost of $200 million in each period. Since the beginning of 2006, we have repurchased and retired 162.0 million shares at a total cost of $10.5 billion . |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Investments | Investments Investment in Conrail Through a limited liability company, we and CSX Corporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary is Consolidated Rail Corporation (CRC). We have a 58% economic and 50% voting interest in the jointly owned entity, and CSX has the remainder of the economic and voting interests. Our investment in Conrail was $1.2 billion at both March 31, 2017 , and December 31, 2016 . CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of Norfolk Southern Railway Company (NSR) and CSX Transportation, Inc. (CSXT). The costs of operating the Shared Assets Areas are borne by NSR and CSXT based on usage. In addition, NSR and CSXT pay CRC a fee for access to the Shared Assets Areas. “Purchased services and rents” and “Fuel” include amounts payable to CRC for the operation of the Shared Assets Areas totaling $35 million and $39 million for the first quarter s of 2017 and 2016 , respectively. Our equity in the earnings of Conrail, net of amortization, included in “Purchased services and rents” was $10 million and $11 million for the first quarter s of 2017 and 2016 , respectively. “Other liabilities” includes $280 million at both March 31, 2017 , and December 31, 2016 , for long-term advances from Conrail, maturing 2044 , that bear interest at an average rate of 2.9% . Investment in TTX NS and eight other North American railroads jointly own TTX Company (TTX). NS has a 19.65% ownership interest in TTX, a railcar pooling company that provides its owner-railroads with standardized fleets of intermodal, automotive, and general use railcars at stated rates. Amounts payable to TTX for use of equipment are included in “Purchased services and rents” and amounted to $57 million and $58 million of expense for the first quarter s of 2017 and 2016 , respectively. Our equity in the earnings of TTX, also included in “Purchased services and rents,” totaled $8 million and $5 million for the first quarter s of 2017 and 2016 , respectively. |
Pensions And Other Postretireme
Pensions And Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Pensions And Other Postretirement Benefits | Pensions and Other Postretirement Benefits We have both funded and unfunded defined benefit pension plans covering principally salaried employees. We also provide specified health care and life insurance benefits to eligible retired employees; these plans can be amended or terminated at our option. Under our self-insured retiree health care plan, for those participants who are not Medicare-eligible, a defined percentage of health care expenses is covered for retired employees and their dependents, reduced by any deductibles, coinsurance, and, in some cases, coverage provided under other group insurance policies. Those participants who are Medicare-eligible are not covered under the self-insured retiree health care plan, but instead are provided with an employer-funded health reimbursement account which can be used for reimbursement of health insurance premiums or eligible out-of-pocket medical expenses. Pension and postretirement benefit cost components for the first quarter are as follows: Other Postretirement Pension Benefits Benefits First Quarter 2017 2016 2017 2016 ($ in millions) Service cost $ 9 $ 9 $ 2 $ 1 Interest cost 20 20 4 4 Expected return on plan assets (43 ) (43 ) (4 ) (4 ) Amortization of net losses 13 13 — — Amortization of prior service benefit — — (6 ) (6 ) Net benefit $ (1 ) $ (1 ) $ (4 ) $ (5 ) |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Values of Financial Instruments The fair values of “Cash and cash equivalents,” “Accounts receivable,” “Accounts payable,” and “Short-term debt” approximate carrying values because of the short maturity of these financial instruments. The carrying value of corporate-owned life insurance is recorded at cash surrender value and, accordingly, approximates fair value. Other than these assets and liabilities that approximate fair value, there are no other assets or liabilities measured at fair value on a recurring basis at March 31, 2017 , or December 31, 2016 . The carrying amounts and estimated fair values for the remaining financial instruments, excluding investments accounted for under the equity method, consisted of the following: March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value ($ in millions) Long-term investments $ 116 $ 138 $ 116 $ 141 Long-term debt, including current maturities (10,119 ) (11,661 ) (10,112 ) (11,626 ) Underlying net assets and future discounted cash flows were used to estimate the fair value of investments. The fair values of long-term debt were estimated based on quoted market prices or discounted cash flows using current interest rates for debt with similar terms, company rating, and remaining maturity. The following table sets forth the fair value of long-term investment and long-term debt balances disclosed above by valuation technique level, within the fair value hierarchy (there were no level 3 valued assets or liabilities). Level 1 Level 2 Total ($ in millions) March 31, 2017 Long-term investments $ 4 $ 134 $ 138 Long-term debt, including current maturities (11,463 ) (198 ) (11,661 ) December 31, 2016 Long-term investments $ 4 $ 137 $ 141 Long-term debt, including current maturities (11,427 ) (199 ) (11,626 ) |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Lawsuits We and/or certain subsidiaries are defendants in numerous lawsuits and other claims relating principally to railroad operations. When we conclude that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, it is accrued through a charge to earnings. While the ultimate amount of liability incurred in any of these lawsuits and claims is dependent on future developments, in our opinion, the recorded liability is adequate to cover the future payment of such liability and claims. However, the final outcome of any of these lawsuits and claims cannot be predicted with certainty, and unfavorable or unexpected outcomes could result in additional accruals that could be significant to results of operations in a particular year or quarter. Any adjustments to the recorded liability will be reflected in earnings in the periods in which such adjustments become known. One of our chemical customers, Sunbelt Chlor Alkali Partnership (Sunbelt), filed a rate reasonableness complaint before the Surface Transportation Board (STB) alleging that our tariff rates for transportation of regulated movements are unreasonable. Since April 1, 2011, we have been billing and collecting amounts based on the challenged tariff rates. In 2014, the STB resolved this rate reasonableness complaint in our favor. In June 2016, the STB resolved petitions for reconsideration. The matter remains decided in our favor; however, the findings are still subject to appeal. We believe the estimate of any reasonably possible loss will not have a material effect on our financial position, results of operations, or liquidity. With regard to rate cases, we record adjustments to revenues in the periods if and when such adjustments are probable and reasonably estimable. On November 6, 2007, various antitrust class actions filed against us and other Class I railroads in various Federal district courts regarding fuel surcharges were consolidated in the District of Columbia by the Judicial Panel on Multidistrict Litigation. On June 21, 2012, the court certified the case as a class action. The defendant railroads appealed this certification, and the Court of Appeals for the District of Columbia vacated the District Court’s decision and remanded the case for further consideration. We believe the allegations in the complaints are without merit and intend to vigorously defend the cases. We do not believe the outcome of these proceedings will have a material effect on our financial position, results of operations, or liquidity. Casualty Claims Casualty claims include employee personal injury and occupational claims as well as third-party claims, all exclusive of legal costs. To aid in valuing our personal injury liability and determining the amount to accrue with respect to such claims during the year, we utilize studies prepared by an independent consulting actuarial firm. Job-related accidental injury and occupational claims are subject to the Federal Employers’ Liability Act (FELA), which is applicable only to railroads. FELA’s fault-based system produces results that are unpredictable and inconsistent as compared with a no-fault workers’ compensation system. The variability inherent in this system could result in actual costs being different from the liability recorded. While the ultimate amount of claims incurred is dependent on future developments, in our opinion, the recorded liability is adequate to cover the future payments of claims and is supported by the most recent actuarial study. In all cases, we record a liability when the expected loss for the claim is both probable and reasonably estimable. Employee personal injury claims – The largest component of casualties and other claims expense is employee personal injury costs. The independent actuarial firm engaged by us provides quarterly studies to aid in valuing our employee personal injury liability and estimating personal injury expense. The actuarial firm studies our historical patterns of reserving for claims and subsequent settlements, taking into account relevant outside influences. The actuarial firm uses the results of these analyses to estimate the ultimate amount of liability. We adjust the liability quarterly based upon our assessment and the results of the study. Our estimate of the liability is subject to inherent limitation given the difficulty of predicting future events such as jury decisions, court interpretations, or legislative changes. As a result, actual claim settlements may vary from the estimated liability recorded. Occupational claims – Occupational claims (including asbestosis and other respiratory diseases, as well as conditions allegedly related to repetitive motion) are often not caused by a specific accident or event but rather allegedly result from a claimed exposure over time. Many such claims are being asserted by former or retired employees, some of whom have not been employed in the rail industry for decades. The independent actuarial firm provides an estimate of the occupational claims liability based upon our history of claim filings, severity, payments, and other pertinent facts. The liability is dependent upon judgments we make as to the specific case reserves as well as judgments of the actuarial firm in the quarterly studies. The actuarial firm’s estimate of ultimate loss includes a provision for those claims that have been incurred but not reported. This provision is derived by analyzing industry data and projecting our experience. We adjust the liability quarterly based upon our assessment and the results of the study. However, it is possible that the recorded liability may not be adequate to cover the future payment of claims. Adjustments to the recorded liability are reflected in operating expenses in the periods in which such adjustments become known. Third-party claims – We record a liability for third-party claims, including those for highway crossing accidents, trespasser and other injuries, automobile liability, property damage, and lading damage. The actuarial firm assists us with the calculation of potential liability for third-party claims, except lading damage, based upon our experience including the number and timing of incidents, amount of payments, settlement rates, number of open claims, and legal defenses. We adjust the liability quarterly based upon our assessment and the results of the study. Given the inherent uncertainty in regard to the ultimate outcome of third-party claims, it is possible that the actual loss may differ from the estimated liability recorded. Environmental Matters We are subject to various jurisdictions’ environmental laws and regulations. We record a liability where such liability or loss is probable and its amount can be reasonably estimated. Environmental engineers regularly participate in ongoing evaluations of all known sites and in determining any necessary adjustments to liability estimates. We have an Environmental Policy Council, composed of senior managers, to oversee and interpret our environmental policy. Our Consolidated Balance Sheets include liabilities for environmental exposures of $67 million at both March 31, 2017 , and December 31, 2016 (of which $15 million are classified as current liabilities at both March 31, 2017 , and December 31, 2016 ). At both dates, the liability represents our estimates of the probable cleanup, investigation, and remediation costs based on available information at 134 known locations and projects. At March 31, 2017 , 17 sites accounted for $44 million of the liability, and no individual site was considered to be material. We anticipate that much of this liability will be paid out over five years; however, some costs will be paid out over a longer period. At ten locations, one or more of our subsidiaries in conjunction with a number of other parties have been identified as potentially responsible parties under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or comparable state statutes that impose joint and several liability for cleanup costs. We calculate our estimated liability for these sites based on facts and legal defenses applicable to each site and not solely on the basis of the potential for joint liability. With respect to known environmental sites (whether identified by us or by the Environmental Protection Agency or comparable state authorities), estimates of our ultimate potential financial exposure for a given site or in the aggregate for all such sites can change over time because of the widely varying costs of currently available cleanup techniques, unpredictable contaminant recovery and reduction rates associated with available cleanup technologies, the likely development of new cleanup technologies, the difficulty of determining in advance the nature and full extent of contamination and each potential participant’s share of any estimated loss (and that participant’s ability to bear it), and evolving statutory and regulatory standards governing liability. The risk of incurring environmental liability, for acts and omissions, past, present, and future, is inherent in the railroad business. Some of the commodities we transport, particularly those classified as hazardous materials, pose special risks that we work diligently to reduce. In addition, several of our subsidiaries own, or have owned, land used as operating property, or which is leased and operated by others, or held for sale. Because environmental problems that are latent or undisclosed may exist on these properties, there can be no assurance that we will not incur environmental liabilities or costs with respect to one or more of them, the amount and materiality of which cannot be estimated reliably at this time. Moreover, lawsuits and claims involving these and potentially other unidentified environmental sites and matters are likely to arise from time to time. The resulting liabilities could have a significant effect on our financial position, results of operations, or liquidity in a particular year or quarter. Based on our assessment of the facts and circumstances now known, we believe we have recorded the probable and reasonably estimable costs for dealing with those environmental matters of which we are aware. Further, we believe that it is unlikely that any known matters, either individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, or liquidity. Insurance We obtain, on behalf of ourself and our subsidiaries, insurance for potential losses for third-party liability and first-party property damages. We are currently self-insured up to $50 million and above $1.1 billion ( $1.5 billion for specific perils) per occurrence and/or policy year for bodily injury and property damage to third parties and up to $25 million and above $200 million per occurrence and/or policy year for property owned by us or in our care, custody, or control. |
New Accounting Pronouncements N
New Accounting Pronouncements New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncement, Early Adoption [Table Text Block] | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” This update will replace most existing revenue recognition guidance in GAAP and require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard will be effective for our annual and interim reporting periods beginning January 1, 2018. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We are still evaluating the effects of ASU 2014-09, but we do not currently expect that adoption of the standard will have a material effect on our consolidated financial statements. There will be no change to our pattern of revenue recognition related to transportation revenue, which will continue to be recognized proportionally as a shipment moves from origin to destination. Certain additional financial statement disclosure requirements are mandated by the new standard including disclosure of contract assets and contract liabilities as well as a disaggregated view of revenue, which we expect to be similar to our current disclosures within the “Railway Operating Revenues” section of Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We do not plan to adopt the standard early and we have not yet determined which transition method we will use. In February 2016, the FASB issued ASU 2016-02, “Leases.” This update, effective for our annual and interim reporting periods beginning January 1, 2019, will replace existing lease guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all leases greater than twelve months and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the effects ASU 2016-02 will have on our consolidated financial statements and related disclosures. We disclosed $614 million in operating lease obligations in our lease commitments footnote in our most recent Form 10-K and we will evaluate those contracts as well as other existing arrangements to determine if they qualify for lease accounting under the new standard. We do not plan to adopt the standard early. In June 2016, the FASB issued ASU 2016-13, “Credit Losses - Measurement of Credit Losses on Financial Instruments,” which replaces the current incurred loss impairment method with a method that reflects expected credit losses. The new standard is effective as of January 1, 2020, and early adoption is permitted as of January 1, 2019. Because credit losses associated from our trade receivables have historically been insignificant, we do not expect this standard to have a material effect on our financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This update, effective for annual and interim reporting periods beginning January 1, 2018, will require segregation of these net benefit costs between operating and non-operating expenses. Currently, we report the net benefit costs associated with our defined benefit and postretirement plans in the “Compensation and benefits” line item of the Consolidated Statements of Income, as disclosed in Note 6, “Pensions and Other Postretirement Benefits.” When the ASU is implemented, only the service cost component of defined benefit pension cost and postretirement benefit cost will be reported within compensation costs, while all other components of net benefit cost will be presented within the “Other income - net” line item on the Consolidated Statements of Income. The standard requires retrospective application, and as such the adoption of this standard will result in offsetting increases in “Compensation and benefits” expense and “Other income-net” of the Consolidated Statements of Income for all periods of 2017 and 2016, with no impact on net income. We will not adopt the standard early. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | During the first quarter of 2017 , a committee of nonemployee members of our Board of Directors (or the Chief Executive Officer when delegated authority by such committee) granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP) and granted stock options pursuant to the Thoroughbred Stock Option Plan (TSOP), as follows: Granted Weighted-Average Grant-Date Fair Value Stock options: LTIP 341,120 $ 37.73 TSOP 144,440 31.33 Total 485,560 Restricted stock units 80,360 120.25 Performance share units 284,953 86.91 |
Schedule Of Assumptions Used For LTIP And TSOP Grants | The assumptions for the 2017 LTIP and TSOP grants are shown in the following table: Average expected volatility 26% Average risk-free interest rate 2.51% Average expected option term LTIP 8.6 years Average expected option term TSOP 8.3 years Per-share grant price LTIP and TSOP $ 120.25 |
Schedule of Cash Proceeds Received from Share-based Payment Awards [Table Text Block] | First Quarter 2017 2016 ($ in millions) Stock options exercised 885,722 213,914 Cash received upon exercise $ 49 $ 10 Related tax benefit realized $ 16 $ 1 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Stock-Based Compensation First Quarter 2017 2016 ($ in millions) Stock-based compensation expense $ 27 $ 27 Total tax benefit 30 14 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Activity [Table Text Block] | First Quarter 2017 2016 ($ in millions) RSUs vested 137,200 175,500 Common Stock issued net of tax withholding 81,318 103,936 Related tax benefit realized $ 3 $ — |
PSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Activity [Table Text Block] | First Quarter 2017 2016 ($ in millions) PSUs earned 171,080 406,038 Common Stock issued net of tax withholding 99,805 241,757 Related tax benefit realized $ 1 $ 3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted earnings per share: Basic Diluted First Quarter 2017 2016 2017 2016 ($ in millions, except per share amounts, shares in millions) Net income $ 433 $ 387 $ 433 $ 387 Dividend equivalent payments (1 ) (1 ) (1 ) (1 ) Income available to common stockholders $ 432 $ 386 $ 432 $ 386 Weighted-average shares outstanding 290.3 297.2 290.3 297.2 Dilutive effect of outstanding options and share-settled awards 2.5 1.7 Adjusted weighted-average shares outstanding 292.8 298.9 Earnings per share $ 1.49 $ 1.30 $ 1.48 $ 1.29 |
Accumulated Other Comprehensi18
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | The changes in the cumulative balances of “Accumulated other comprehensive loss” reported in the Consolidated Balance Sheets consisted of the following: Balance at Beginning of Year Net Loss Reclassification Adjustments Balance at End of Period ($ in millions) Three months ended March 31, 2017 Pensions and other postretirement liabilities $ (414 ) $ — $ 4 (1) $ (410 ) Other comprehensive loss of equity investees (73 ) (2 ) — (75 ) Accumulated other comprehensive loss $ (487 ) $ (2 ) $ 4 $ (485 ) Three months ended March 31, 2016 Pensions and other postretirement liabilities $ (367 ) $ — $ 4 (1) $ (363 ) Other comprehensive loss of equity investees (78 ) (1 ) — (79 ) Accumulated other comprehensive loss $ (445 ) $ (1 ) $ 4 $ (442 ) (1) These items are included in the computation of net periodic pension and postretirement benefit costs. See Note 6, “Pensions and Other Postretirement Benefits,” for additional information. |
Pensions And Other Postretire19
Pensions And Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Pension And Other Postretirement Benefit Cost Components | Pension and postretirement benefit cost components for the first quarter are as follows: Other Postretirement Pension Benefits Benefits First Quarter 2017 2016 2017 2016 ($ in millions) Service cost $ 9 $ 9 $ 2 $ 1 Interest cost 20 20 4 4 Expected return on plan assets (43 ) (43 ) (4 ) (4 ) Amortization of net losses 13 13 — — Amortization of prior service benefit — — (6 ) (6 ) Net benefit $ (1 ) $ (1 ) $ (4 ) $ (5 ) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying Amounts And Estimated Fair Values | The carrying amounts and estimated fair values for the remaining financial instruments, excluding investments accounted for under the equity method, consisted of the following: March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value ($ in millions) Long-term investments $ 116 $ 138 $ 116 $ 141 Long-term debt, including current maturities (10,119 ) (11,661 ) (10,112 ) (11,626 ) |
Schedule Of Fair Value Of Long-term Assets And Liabilities | The following table sets forth the fair value of long-term investment and long-term debt balances disclosed above by valuation technique level, within the fair value hierarchy (there were no level 3 valued assets or liabilities). Level 1 Level 2 Total ($ in millions) March 31, 2017 Long-term investments $ 4 $ 134 $ 138 Long-term debt, including current maturities (11,463 ) (198 ) (11,661 ) December 31, 2016 Long-term investments $ 4 $ 137 $ 141 Long-term debt, including current maturities (11,427 ) (199 ) (11,626 ) |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 27 | $ 27 |
Tax benefits associated with stock-based compensation | $ 30 | $ 14 |
Average expected volatility rate | 26.00% | |
Average risk-free interest rate | 2.51% | |
Stock options exercised | 885,722 | 213,914 |
Proceeds from stock options exercised | $ 49 | $ 10 |
Excess tax benefits recognized for share-based awards | $ 16 | $ 1 |
LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 341,120 | |
Vesting period, in years | 4 years | 4 years |
LTIP dividend equivalent payment, in years | 4 years | 4 years |
Dividend yield for period dividend equivalents paid | 0.00% | |
Average expected option term, in years | 8 years 7 months 6 days | |
Per-share grant-date fair value for options granted | $ 37.73 | |
TSOP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 144,440 | |
Vesting period, in years | 3 years | 3 years |
Average expected option term, in years | 8 years 3 months 18 days | |
Per-share grant-date fair value for options granted | $ 31.33 | |
Ltip And Tsop [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted | 485,560 | |
Stock option term, in years | 10 years | 10 years |
Dividend yield for period dividend equivalents paid | 2.04% | |
Grant price of options granted | $ 120.25 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants other than stock options | 80,360 | |
Grant-date fair value of units granted | $ 120.25 | |
Vesting period, in years | 5 years | 5 years |
Excess tax benefits recognized for share-based awards | $ 3 | $ 0 |
Performance share units earned | 137,200 | 175,500 |
Shares issued net of withholding taxes | 81,318 | 103,936 |
PSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants other than stock options | 284,953 | |
Grant-date fair value of units granted | $ 86.91 | |
Excess tax benefits recognized for share-based awards | $ 1 | $ 3 |
Performance share units earned | 171,080 | 406,038 |
Shares issued net of withholding taxes | 99,805 | 241,757 |
Performance share units cycle, in years | 3 years | 3 years |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Schedule of Stock-Based Compensation Expense and Related Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Allocated Share-based Compensation Expense | $ 27 | $ 27 |
Tax benefits associated with stock-based compensation | $ 30 | $ 14 |
Stock-Based Compensation Stoc23
Stock-Based Compensation Stock-Based Compensatoon (Schedule of Grants and Weighted-Average Grant-Date Fair Values) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted | 341,120 |
Per-share grant-date fair value for options granted | $ / shares | $ 37.73 |
TSOP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted | 144,440 |
Per-share grant-date fair value for options granted | $ / shares | $ 31.33 |
Ltip And Tsop [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted | 485,560 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants other than stock options | 80,360 |
Grant-date fair value of units granted | $ / shares | $ 120.25 |
PSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants other than stock options | 284,953 |
Grant-date fair value of units granted | $ / shares | $ 86.91 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Assumptions Used For LTIP And TSOP Grants) (Details) | 3 Months Ended |
Mar. 31, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average expected volatility rate | 26.00% |
Average risk-free interest rate | 2.51% |
LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average expected option term, in years | 8 years 7 months 6 days |
Per-share grant-date fair value for options granted | $ 37.73 |
TSOP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average expected option term, in years | 8 years 3 months 18 days |
Per-share grant-date fair value for options granted | $ 31.33 |
Ltip And Tsop [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant price of options granted | $ 120.25 |
Stock-Based Compensation Stoc25
Stock-Based Compensation Stock-Based Compensation (Schedule of Options Exercised, Cash Received, and Related Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options exercised | 885,722 | 213,914 |
Proceeds from stock options exercised | $ 49 | $ 10 |
Excess tax benefits recognized for share-based awards | $ 16 | $ 1 |
Stock-Based Compensation Stoc26
Stock-Based Compensation Stock-Based Compensation (Schedule of PSU Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Excess tax benefits recognized for share-based awards | $ 16 | $ 1 |
PSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share units earned | 171,080 | 406,038 |
Shares issued net of withholding taxes | 99,805 | 241,757 |
Excess tax benefits recognized for share-based awards | $ 1 | $ 3 |
Stock-Based Compensation Stoc27
Stock-Based Compensation Stock-Based Compensation (Schedule of RSU Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Excess tax benefits recognized for share-based awards | $ 16 | $ 1 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share units earned | 137,200 | 175,500 |
Shares issued net of withholding taxes | 81,318 | 103,936 |
Excess tax benefits recognized for share-based awards | $ 3 | $ 0 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 433 | $ 387 |
Dividend equivalent payments, basic | (1) | (1) |
Dividend equivalent payments, diluted | (1) | (1) |
Income available to common stockholders, basic | 432 | 386 |
Income available to common stockholders, diluted | $ 432 | $ 386 |
Weighted-average shares outstanding | 290.3 | 297.2 |
Dilutive effect of outstanding options and share-settled awards | 2.5 | 1.7 |
Adjusted weighted-average shares outstanding | 292.8 | 298.9 |
Earnings per share, basic | $ 1.49 | $ 1.30 |
Earnings per share, diluted | $ 1.48 | $ 1.29 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.5 | 1.5 |
Earnings Per Share Earnings P29
Earnings Per Share Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.5 | 1.5 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss - beginning balance | $ (487) | $ (445) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2) | (1) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4 | 4 |
Accumulated other comprehensive loss - ending balance | (485) | (442) |
Pensions And Other Postretirement Liabilities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss, pensions and other postretirement benefit plans, net of tax - beginning balance | (414) | (367) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Net of Tax | 4 | 4 |
Accumulated other comprehensive loss, pensions and other postretirement benefit plans, net of tax - ending balance | (410) | (363) |
Accumulated Other Comprehensive Loss Equity Investees | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive loss - beginning balance | (73) | (78) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2) | (1) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 |
Accumulated other comprehensive loss - ending balance | $ (75) | $ (79) |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Repurchase Program [Abstract] | ||
Stock repurchased and retired during period, shares | 1.7 | 2.6 |
Stock repurchased and retired during period, cost | $ 200 | $ 200 |
Stock repurchased and retired since beginning of stock repurchase program in 2006, shares | 162 | |
Stock repurchased and retired since beginning of stock repurchase program in 2006, cost | $ 10,500 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Equity Method Investee [Member] | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 58.00% | ||
Conrail Voting | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Conrail Inc [Member] | |||
Schedule of Investments [Line Items] | |||
Equity method investments | $ 1,200 | $ 1,200 | |
Expenses from transactions with related party | 35 | $ 39 | |
Equity in the earnings of investee | 10 | $ 11 | |
Due to affiliate, noncurrent | $ 280 | $ 280 | |
Due to affiliate, noncurrent, maturity date | 2,044 | 2,044 | |
Due to affiliate, average interest rate | 2.90% | 2.90% | |
TTX Company [Member] | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 19.65% | ||
Expenses from transactions with related party | $ 57 | $ 58 | |
Equity in the earnings of investee | $ 8 | $ 5 |
Pensions And Other Postretire33
Pensions And Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 9 | $ 9 |
Interest cost | 20 | 20 |
Expected return on plan assets | (43) | (43) |
Amortization of net losses | 13 | 13 |
Amortization of prior service benefit | 0 | 0 |
Net benefit | (1) | (1) |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 1 |
Interest cost | 4 | 4 |
Expected return on plan assets | (4) | (4) |
Amortization of net losses | 0 | 0 |
Amortization of prior service benefit | (6) | (6) |
Net benefit | $ (4) | $ (5) |
Fair Value (Schedule Of Carryin
Fair Value (Schedule Of Carrying Amounts And Estimated Fair Values) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Long-term investments, carrying amount | $ 116 | $ 116 |
Long-term investments, fair value | 138 | 141 |
Long-term debt, including current maturities, carrying value | (10,119) | (10,112) |
Long-term debt, including current maturities, fair value | $ (11,661) | $ (11,626) |
Fair Value (Schedule Of Fair Va
Fair Value (Schedule Of Fair Value Of Long-term Assets And Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | $ 138 | $ 141 |
Long-term debt, including current maturities | (11,661) | (11,626) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 4 | 4 |
Long-term debt, including current maturities | (11,463) | (11,427) |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 134 | 137 |
Long-term debt, including current maturities | $ (198) | $ (199) |
Commitments And Contingencies (
Commitments And Contingencies (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)location | Dec. 31, 2016USD ($)location | |
Commitments and Contingencies Disclosure [Abstract] | ||
Environmental liability | $ 67,000,000 | $ 67,000,000 |
Current environmental liability | $ 15,000,000 | $ 15,000,000 |
Known cleanup and remediation locations and projects | location | 134 | 134 |
Number of sites - representative sample | location | 17 | |
Liability associated with those sites | $ 44,000,000 | |
Environmental locations representative sample liability payout period, in years | 5 years | |
Responsible locations with another party | location | 10 | |
Self-insured injury/damage to third party - up to | $ 50,000,000 | |
Self-insured injury/damage to third parties - and above, per occurrence | 1,100,000,000 | |
Self-insured injury/damage to third parties - and above, per occurrence for specific perils | 1,500,000,000 | |
Self-insured NS owned property - up to | 25,000,000 | |
Self-insured NS owned property - and above, per occurrence | $ 200,000,000 |
New Accounting Pronouncements A
New Accounting Pronouncements Adjustments for New Accounting Pronouncements (Narrative) (Details) $ in Millions | Dec. 31, 2016USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Leases, Future Minimum Payments Due | $ 614 |