Norfolk Southern (NSC) 10-K 2003 FY Annual report

Exhibit 12, Page 1 of 1
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Millions of Dollars)
	Year ended December 31,
	2003		2002		2001		2000		1999
EARNINGS
Income from continuing operations before income taxes as reported	$	586	$	706	$	553	$	250	$	351
Add:
Total interest expenses (as detailed below)		609		663		674		721		708
Amortization of capitalized interest		5		6		5		5		4
Income (loss) of partially owned entities (1)		46		36		39		60		47
Subsidiaries' preferred dividend requirements		- --		2		2		2		2
Income before income taxes, as adjusted	$	1,246	$	1,413	$	1,273	$	1,038	$	1,112
FIXED CHARGES
Interest expense on debt	$	497	$	518	$	553	$	551	$	531
Other interest expense		5		32		2		42		35
Calculated interest portion of rent expense		39		40		41		40		35
NS' share of Conrail interest		68		73		78		88		107
Total interest expenses		609		663		674		721		708
Capitalized interest		12		11		17		18		15
Subsidiaries' preferred dividend requirement on a pretax basis		- --		4		4		4		4
Total fixed charges	$	621	$	678	$	695	$	743	$	727
RATIO OF EARNINGS TO FIXED CHARGES		2.01		2.08		1.83		1.40		1.53

(1) 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.