Norfolk Southern (NSC) 10-K 2002 FY Annual report

Exhibit 12
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Millions of Dollars)
	Year ended December 31,
	2002		2001		2000		1999		1998
EARNINGS
Income from continuing operations before income taxes as reported	$	706	$	553	$	250	$	351	$	845
Add:
Total interest expenses (as detailed below)		663		674		721		708		688
Amortization of capitalized interest		6		5		5		4		3
Income (loss) of partially owned entities (1)		36		39		60		47		165
Subsidiaries' preferred dividend requirements		2		2		2		2		2
Income before income taxes, as adjusted	$	1,413	$	1,273	$	1,038	$	1,112	$	1,703
FIXED CHARGES
Interest expense on debt	$	518	$	553	$	551	$	531	$	516
Other interest expense		32		2		42		35		27
Calculated interest portion of rent expense		40		41		40		35		31
NS' share of Conrail interest		73		78		88		107		114
Total interest expenses		663		674		721		708		688
Capitalized interest		11		17		18		15		21
Subsidiaries' preferred dividend requirement on a pretax basis		4		4		4		4		4
Total fixed charges	$	678	$	695	$	743	$	727	$	713
RATIO OF EARNINGS TO FIXED CHARGES		2.08		1.83		1.40		1.53		2.39

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Includes: (a) the distributed income of 20%-49% owned entities, net of equity recorded in undistributed income and the minority income of consolidated entities which have fixed charges; and (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 $7.8 million of debt guaranteed for a less than 50% owned entity.