Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Entity Registrant Name | 'NORFOLK SOUTHERN CORP | ' | ' |
Entity Central Index Key | '0000702165 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Public Float | ' | ' | $22,587,575,039 |
Entity Common Stock, Shares Outstanding | ' | 309,715,149 | ' |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Income [Abstract] | ' | ' | ' |
Railway operating revenues | $11,245 | $11,040 | $11,172 |
Railway operating expenses: | ' | ' | ' |
Compensation and benefits | 3,002 | 2,960 | 2,974 |
Purchased services and rents | 1,629 | 1,604 | 1,610 |
Fuel | 1,613 | 1,577 | 1,589 |
Depreciation | 916 | 916 | 862 |
Materials and other | 828 | 859 | 924 |
Total railway operating expenses | 7,988 | 7,916 | 7,959 |
Income from railway operations | 3,257 | 3,124 | 3,213 |
Other income, net | 233 | 129 | 160 |
Interest expense on debt | 525 | 495 | 455 |
Income before income taxes | 2,965 | 2,758 | 2,918 |
Provision for income taxes | 1,055 | 1,009 | 1,002 |
Net income | $1,910 | $1,749 | $1,916 |
Per share amounts: | ' | ' | ' |
Basic | $6.10 | $5.42 | $5.52 |
Diluted | $6.04 | $5.37 | $5.45 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Income and Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $1,910 | $1,749 | $1,916 |
Other comprehensive income (loss), before tax | ' | ' | ' |
Pension and other postretirement benefits | 1,122 | -114 | -325 |
Other comprehensive income (loss) of equity investees | 42 | -13 | -21 |
Other comprehensive income (loss), before tax | 1,164 | -127 | -346 |
Income tax benefit (expense) related to items of other comprehensive income | -436 | 44 | 125 |
Other Comprehensive Income (Loss), Net of Tax | 728 | -83 | -221 |
Total comprehensive income | $2,638 | $1,666 | $1,695 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $1,443 | $653 |
Short-term investments | 118 | 15 |
Accounts receivable, net | 1,024 | 1,109 |
Materials and supplies | 223 | 216 |
Deferred income taxes | 180 | 167 |
Other current assets | 87 | 82 |
Total current assets | 3,075 | 2,242 |
Investments | 2,439 | 2,300 |
Properties less accumulated depreciation of $10,387 and $9,922, respectively | 26,645 | 25,736 |
Other assets | 324 | 64 |
Total assets | 32,483 | 30,342 |
Liabilities and stockholders' equity | ' | ' |
Accounts payable | 1,265 | 1,362 |
Short-term debt | 100 | 200 |
Income and other taxes | 225 | 206 |
Other current liabilities | 270 | 263 |
Current maturities of long-term debt | 445 | 50 |
Total current liabilities | 2,305 | 2,081 |
Long-term debt | 8,903 | 8,432 |
Other liabilities | 1,444 | 2,237 |
Deferred income taxes | 8,542 | 7,832 |
Total liabilities | 21,194 | 20,582 |
Stockholders' equity: | ' | ' |
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 308,878,402 and 314,034,174 shares, respectively, net of treasury shares | 310 | 315 |
Additional paid-in capital | 2,021 | 1,911 |
Accumulated other comprehensive loss | -381 | -1,109 |
Retained income | 9,339 | 8,643 |
Total stockholders' equity | 11,289 | 9,760 |
Total liabilities and stockholders' equity | $32,483 | $30,342 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Properties, accumulated depreciation | $10,387 | $9,922 |
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 | 308,878,402 | 314,034,174 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $1,910 | $1,749 | $1,916 |
Reconciliation of net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 922 | 922 | 869 |
Deferred income taxes | 262 | 366 | 527 |
Gains and losses on properties and investments | -104 | -6 | -32 |
Changes in assets and liabilities affecting operations: | ' | ' | ' |
Accounts receivable | 85 | -64 | -215 |
Materials and supplies | -7 | -7 | -40 |
Other current assets | -5 | -6 | 14 |
Current liabilities other than debt | 5 | 82 | 68 |
Other, net | 10 | 29 | 120 |
Net cash provided by operating activities | 3,078 | 3,065 | 3,227 |
Cash flows from investing activities | ' | ' | ' |
Property additions | -1,971 | -2,241 | -2,160 |
Property sales and other transactions | 144 | 192 | 84 |
Investments, including short-term | -130 | -23 | -135 |
Investment sales and other transactions | 63 | 78 | 439 |
Net cash used in investing activities | -1,894 | -1,994 | -1,772 |
Cash flows from financing activities | ' | ' | ' |
Dividends | -637 | -624 | -576 |
Common stock issued, net | 131 | 89 | 120 |
Purchase and retirement of common stock | -627 | -1,288 | -2,051 |
Proceeds from borrowings, net | 989 | 1,491 | 1,101 |
Debt repayments | -250 | -362 | -600 |
Net cash used in financing activities | -394 | -694 | -2,006 |
Net increase (decrease) in cash and cash equivalents | 790 | 377 | -551 |
Cash and cash equivalents | ' | ' | ' |
At beginning of year | 653 | 276 | 827 |
At end of year | 1,443 | 653 | 276 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Interest (net of amounts capitalized) | 492 | 473 | 435 |
Income taxes (net of refunds) | $735 | $618 | $289 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Income [Member] | Total |
In Millions, unless otherwise specified | |||||
Balance at Dec. 31, 2010 | $358 | $1,892 | ($805) | $9,224 | $10,669 |
Comprehensive income | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 1,916 | 1,916 |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | -221 | ' | -221 |
Total comprehensive income | ' | ' | ' | ' | 1,695 |
Dividends on Common Stock | ' | ' | ' | -576 | -576 |
Share repurchases | -30 | -159 | ' | -1,862 | -2,051 |
Stock-based compensation, including tax benefit | 4 | 179 | ' | -9 | 174 |
Balance at Dec. 31, 2011 | 332 | 1,912 | -1,026 | 8,693 | 9,911 |
Comprehensive income | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 1,749 | 1,749 |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | -83 | ' | -83 |
Total comprehensive income | ' | ' | ' | ' | 1,666 |
Dividends on Common Stock | ' | ' | ' | -624 | -624 |
Share repurchases | -19 | -104 | ' | -1,165 | -1,288 |
Stock-based compensation, including tax benefit | 2 | 103 | ' | -10 | 95 |
Balance at Dec. 31, 2012 | 315 | 1,911 | -1,109 | 8,643 | 9,760 |
Comprehensive income | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 1,910 | 1,910 |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | 728 | ' | 728 |
Total comprehensive income | ' | ' | ' | ' | 2,638 |
Dividends on Common Stock | ' | ' | ' | -637 | -637 |
Share repurchases | -8 | -49 | ' | -570 | -627 |
Stock-based compensation, including tax benefit | 3 | 159 | ' | -7 | 155 |
Balance at Dec. 31, 2013 | $310 | $2,021 | ($381) | $9,339 | $11,289 |
Consolidated_Statements_Of_Cha1
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Changes In Stockholders' Equity [Abstract] | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $2.04 | $1.94 | $1.66 |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $38 | $42 | $45 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Summary Of Significant Accounting Policies | ' |
1. Summary of Significant Accounting Policies | |
Description of Business | |
Norfolk Southern Corporation is a Virginia-based holding company engaged principally in the rail transportation business, operating approximately 20,000 miles of road primarily in the East and Midwest. These consolidated financial statements include Norfolk Southern Corporation (Norfolk Southern) and its majority-owned and controlled subsidiaries (collectively, NS, we, us, and our). Norfolk Southern's major subsidiary is Norfolk Southern Railway Company (NSR). All significant intercompany balances and transactions have been eliminated in consolidation. | |
NSR and its railroad subsidiaries transport raw materials, intermediate products and finished goods classified in the following commodity groups (percent of total railway operating revenues in 2013): coal (23%); intermodal (21%); chemicals (15%); agriculture/consumer products/government (13%); metals/construction (12%); automotive (9%); and, paper/clay/forest products (7%). Although most of our customers are domestic, ultimate points of origination or destination for some of the products transported (particularly coal bound for export and some intermodal containers) may be outside the U.S. More than 80% of our railroad employees are covered by collective bargaining agreements with various labor unions. | |
Use of Estimates | |
The preparation of financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We periodically review our estimates, including those related to the recoverability and useful lives of assets, as well as liabilities for litigation, environmental remediation, casualty claims, income taxes and pension and other postretirement benefits. Changes in facts and circumstances may result in revised estimates. | |
Revenue Recognition | |
Transportation revenue is recognized proportionally as a shipment moves from origin to destination, and related expenses are recognized as incurred. Refunds (which are primarily volume-based incentives) are recorded as a reduction to revenues on the basis of management's best estimate of projected liability, which is based on historical activity, current shipment counts and the expectation of future activity. We regularly monitor our contract refund liability and, historically, the estimates have not differed significantly from the amounts ultimately refunded. Switching, demurrage and other incidental service revenues are recognized when the services are performed. | |
Cash Equivalents | |
“Cash equivalents” are highly liquid investments purchased three months or less from maturity. | |
Allowance for Doubtful Accounts | |
Our allowance for doubtful accounts was $3 million at both December 31, 2013 and 2012. To determine our allowance for doubtful accounts, we evaluate historical loss experience (which has not been significant), the characteristics of current accounts, and general economic conditions and trends. | |
Materials and Supplies | |
“Materials and supplies,” consisting mainly of fuel oil and items for maintenance of property and equipment, are stated at the lower of average cost or market. The cost of materials and supplies expected to be used in property additions or improvements is included in “Properties.” | |
Investments | |
Debt securities classified as “held-to-maturity” are reported at amortized cost. | |
Investments where we have the ability to exercise significant influence over but do not control the entity are accounted for using the equity method, whereby the investment is carried at the cost of the acquisition plus our equity in undistributed earnings or losses since acquisition. | |
Properties | |
“Properties” are stated principally at cost and are depreciated using the group method whereby assets with similar characteristics, use, and expected lives are grouped together in asset classes and depreciated using a composite depreciation rate. This methodology treats each asset class as a pool of resources, not as singular items. We use more than 60 depreciable asset classes. The primary depreciation method for our asset base is group life. Units of production is the principal method of depreciation for rail in high density corridors and for depletion of natural resources (Note 2). Remaining properties are depreciated generally using the straight-line method over the lesser of estimated service or lease lives. Depreciation in the Consolidated Statements of Cash Flows includes both depreciation and depletion. | |
Depreciation expense is based on our assumptions concerning expected service lives of our properties as well as the expected net salvage that will be received upon their retirement. In developing these assumptions, we utilize periodic depreciation studies that are performed by an independent outside firm of consulting engineers and approved by the Surface Transportation Board (STB). Our depreciation studies are conducted about every three years for equipment and every six years for track assets and other roadway property. The frequency of these studies is consistent with guidelines established by the STB. Key factors which are considered in developing average service life and salvage estimates include: | |
• statistical analysis of historical retirement data and surviving asset records; | |
• review of historical salvage received and current market rates; | |
• review of our operations including expected changes in technology, customer demand, maintenance | |
practices and asset management strategies; | |
• review of accounting policies and assumptions; and | |
• industry review and analysis. | |
The units of production depreciation rate for rail in high density corridors is derived based on consideration of annual gross ton miles as compared to the total or ultimate capacity of rail in these corridors. Our experience has shown that traffic density is a leading factor in determination of the expected service life of rail in high density corridors. In developing the respective depreciation rate, consideration is also given to several rail characteristics including age, weight, condition (new or second hand) and type (curve or straight). As a result, a composite depreciation rate is developed which is applied to the depreciable base. | |
We adjust our rates based on the results of these studies and implement the changes prospectively. The studies may also indicate that the recorded amount of accumulated depreciation is deficient (or in excess) of the amount indicated by the study. Any such deficiency (or excess) is amortized as a component of depreciation expense over the remaining service lives of the affected class of property, as determined by the study. For 2013, roadway depreciation rates ranged from 0.83% to 33.3% and equipment depreciation rates ranged from 1.40% to 33.33%. | |
We capitalize interest on major projects during the period of their construction. Expenditures, including those on leased assets, that extend an asset's useful life or increase its utility, are capitalized. Expenditures capitalized include those that are directly related to a capital project and may include materials, labor and equipment, in addition to an allocable portion of indirect costs that clearly relate to a particular project. Due to the capital intensive nature of the railroad industry, a significant portion of annual capital spending relates to the replacement of self-constructed assets. Because removal activities occur in conjunction with replacement, removal costs are estimated based on an average percentage of time employees replacing assets spend on removal functions. Costs related to repairs and maintenance activities that do not extend an asset's useful life or increase its utility are expensed when such repairs are performed. | |
When properties other than land and nonrail assets are sold or retired in the ordinary course of business, the cost of the assets, net of sale proceeds or salvage, is charged to accumulated depreciation, and no gain or loss is recognized in earnings. Actual historical cost values are retired when available, such as with equipment assets. The use of estimates in recording the retirement of certain roadway assets is necessary based on the impracticality of tracking individual asset costs. When retiring rail, ties and ballast, we use statistical curves that indicate the relative distribution of the age of the assets retired. The historical cost of other roadway assets is estimated using a combination of inflation indices specific to the rail industry and those published by the U.S. Bureau of Labor Statistics. The indices are applied to the replacement value based on the age of the retired assets. These indices are used because they closely correlate with the costs of roadway assets. Gains and losses on disposal of land and nonrail assets are included in “Other income - net” (Note 2) since such income is not a product of our railroad operations. | |
A retirement is considered abnormal if it does not occur in the normal course of business, if it relates to disposition of a large segment of an asset class and if the retirement varies significantly from the retirement profile identified through our depreciation studies, which inherently consider the impact of normal retirements on expected service lives and depreciation rates. Gains or losses from abnormal retirements are recognized in earnings. | |
We review the carrying amount of properties whenever events or changes in circumstances indicate that such carrying amount may not be recoverable based on future undiscounted cash flows. Assets that are deemed impaired as a result of such review are recorded at the lower of carrying amount or fair value. | |
Required Accounting Changes | |
In the first quarter of 2013, we prospectively adopted Accounting Standards Update (ASU) No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update requires the disclosure of the effects of reclassifications out of Accumulated Other Comprehensive Loss on the respective line items in our Consolidated Statements of Income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. We don't have any such items. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, we are required to cross-reference other required GAAP disclosures to provide additional detail about those amounts. We include these disclosures in our “Stockholders' Equity” (Note 13) footnote. This update does not change the requirement to present the components of net income and other comprehensive income in either a single continuous statement or two separate consecutive statements, nor does it change the items currently reported in other comprehensive income. |
Other_Income_Net
Other Income - Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Income - Net [Abstract] | ' | ||||||||
Other Income - Net | ' | ||||||||
2. Other Income - Net | |||||||||
2013 | 2012 | 2011 | |||||||
($ in millions) | |||||||||
Income from natural resources: | |||||||||
Royalties from coal | $ | 50 | $ | 72 | $ | 86 | |||
Nonoperating depletion and depreciation | (6) | (6) | (7) | ||||||
Subtotal | 44 | 66 | 79 | ||||||
Gains and losses from sale of properties | 101 | 5 | 32 | ||||||
Rental income | 61 | 54 | 51 | ||||||
Equity in earnings of Conrail Inc. (Note 5) | 42 | 34 | 31 | ||||||
Corporate-owned life insurance - net | 25 | 13 | 8 | ||||||
Interest income | 8 | 8 | 9 | ||||||
Taxes on nonoperating property | (10) | (10) | (9) | ||||||
Charitable contributions | (11) | (9) | (9) | ||||||
Other interest expense - net | (12) | (9) | (3) | ||||||
Other | (15) | (23) | (29) | ||||||
Total | $ | 233 | $ | 129 | $ | 160 | |||
“Other income - net” includes income and costs not part of rail operations and the income generated by the activities of our noncarrier subsidiaries as well as the costs incurred by those subsidiaries in their operations. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||
Income Taxes | ' | ||||||||||||||
3. Income Taxes | |||||||||||||||
Provisions for Income Taxes | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
($ in millions) | |||||||||||||||
Current: | |||||||||||||||
Federal | $ | 695 | $ | 569 | $ | 432 | |||||||||
State | 98 | 74 | 43 | ||||||||||||
Total current taxes | 793 | 643 | 475 | ||||||||||||
Deferred: | |||||||||||||||
Federal | 270 | 339 | 506 | ||||||||||||
State | (8) | 27 | 21 | ||||||||||||
Total deferred taxes | 262 | 366 | 527 | ||||||||||||
Provision for income taxes | $ | 1,055 | $ | 1,009 | $ | 1,002 | |||||||||
Reconciliation of Statutory Rate to Effective Rate | |||||||||||||||
The “Provision for income taxes” in the Consolidated Statements of Income differs from the amounts computed by applying the statutory federal corporate tax rate as follows: | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||
($ in millions) | |||||||||||||||
Federal income tax at statutory rate | $ | 1,038 | 35 | $ | 965 | 35 | $ | 1,021 | 35 | ||||||
State income taxes, net of federal tax effect | 69 | 2 | 69 | 3 | 69 | 2 | |||||||||
Internal Revenue Service (IRS) audit, settlement | - | - | (6) | - | (40) | (1) | |||||||||
State tax law changes, net of federal tax effect | (11) | - | (3) | - | (28) | (1) | |||||||||
Other, net | (41) | (1) | (16) | (1) | (20) | (1) | |||||||||
Provision for income taxes | $ | 1,055 | 36 | $ | 1,009 | 37 | $ | 1,002 | 34 | ||||||
Deferred Tax Assets and Liabilities | |||||||||||||||
Certain items are reported in different periods for financial reporting and income tax purposes. Deferred tax assets and liabilities are recorded in recognition of these differences. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: | |||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
($ in millions) | |||||||||||||||
Deferred tax assets: | |||||||||||||||
Compensation and benefits, including postretirement | $ | 462 | $ | 834 | |||||||||||
Accruals, including casualty and other claims | 114 | 139 | |||||||||||||
Other | 54 | 41 | |||||||||||||
Total gross deferred tax assets | 630 | 1,014 | |||||||||||||
Less valuation allowance | (32) | (19) | |||||||||||||
Net deferred tax asset | 598 | 995 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||
Property | (8,494) | (8,188) | |||||||||||||
Other | (466) | (472) | |||||||||||||
Total gross deferred tax liabilities | (8,960) | (8,660) | |||||||||||||
Net deferred tax liability | (8,362) | (7,665) | |||||||||||||
Net current deferred tax asset | 180 | 167 | |||||||||||||
Net long-term deferred tax liability | $ | (8,542) | $ | (7,832) | |||||||||||
Except for amounts for which a valuation allowance has been provided, we believe that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. The valuation allowance at the end of each year primarily relates to subsidiary state income tax net operating losses that may not be utilized prior to their expiration. The valuation allowance for 2013 also includes state investment tax credits that may not be utilized prior to their expiration. The total valuation allowance increased by $13 million in 2013 and remained unchanged in 2012. | |||||||||||||||
Uncertain Tax Positions | |||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
($ in millions) | |||||||||||||||
Balance at beginning of year | $ | 63 | $ | 105 | |||||||||||
Additions based on tax positions related to the current year | 3 | 6 | |||||||||||||
Additions for tax positions of prior years | 4 | - | |||||||||||||
Reductions for tax positions of prior years | (1) | (20) | |||||||||||||
Settlements with taxing authorities | (2) | (23) | |||||||||||||
Lapse of statutes of limitations | (2) | (5) | |||||||||||||
Balance at end of year | $ | 65 | $ | 63 | |||||||||||
Included in the balance of unrecognized tax benefits at December 31, 2013, are potential benefits of $25 million that would affect the effective tax rate if recognized. Unrecognized tax benefits are adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. | |||||||||||||||
IRS examinations have been completed for all years prior to 2011. We expect the IRS to begin auditing our 2011 and 2012 consolidated income tax returns in early 2014. State income tax returns generally are subject to examination for a period of three to four years after filing of the return. In addition, we are generally obligated to report changes in taxable income arising from federal income tax examinations to the states within a period of up to two years from the date the federal examination is final. We have various state income tax returns either under examination, administrative appeals, or litigation. We expect that the total amount of unrecognized tax benefits at December 31, 2013, will decrease by approximately $8 million in 2014 due to tax positions for which there was an uncertainty about the timing of deductibility in earlier years, but deductibility may become certain by the close of 2014. We do not expect that the aforementioned potential change in unrecognized tax benefits will have a material effect on our financial position, results of operations, or liquidity. | |||||||||||||||
Interest related to unrecognized tax benefits, which is included in “Other income - net,” totaled $1 million of expense in 2013, $1 million of income in 2012, and $10 million of income in 2011. There were no penalties related to tax matters in 2013, 2012, and 2011. We have recorded a liability of $4 million at December 31, 2013, and $3 million at December 31, 2012, for the payment of interest on unrecognized tax benefits. We have no liability recorded at December 31, 2013 and 2012, for the payment of penalties on unrecognized tax benefits. |
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value [Abstract] | ' | |||||||||||||||||
Fair Value | ' | |||||||||||||||||
4. Fair Value | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
ASC 820-10, “Fair Value Measurements,” established a framework for measuring fair value and a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: | ||||||||||||||||||
Level 1 | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that we have the ability to access. | |||||||||||||||||
Level 2 | Inputs to the valuation methodology include: | |||||||||||||||||
quoted prices for similar assets or liabilities in active markets; | ||||||||||||||||||
quoted prices for identical or similar assets or liabilities in inactive markets; | ||||||||||||||||||
inputs other than quoted prices that are observable for the asset or liability; | ||||||||||||||||||
inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||||||
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | ||||||||||||||||||
Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |||||||||||||||||
The asset's or liability's fair value measurement level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Other than those assets and liabilities described below that approximate fair value, there were no assets or liabilities measured at fair value on a recurring basis at December 31, 2013 or 2012. | ||||||||||||||||||
Fair Values of Financial Instruments | ||||||||||||||||||
We have evaluated the fair values of financial instruments and methods used to determine those fair values. The fair values of “Cash and cash equivalents,” “Short-term investments,” “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. The carrying amounts and estimated fair values for the remaining financial instruments, excluding investments accounted for under the equity method, consisted of the following at December 31: | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||
($ in millions) | ||||||||||||||||||
Long-term investments | $ | 148 | $ | 177 | $ | 139 | $ | 174 | ||||||||||
Long-term debt, including current maturities | (9,348) | (10,673) | (8,482) | (10,734) | ||||||||||||||
Underlying net assets were used to estimate the fair value of investments with the exception of notes receivable, which are based on future discounted cash flows. 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 tables set 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). | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||||
($ in millions) | ||||||||||||||||||
Long-term investments | $ | 47 | $ | 130 | $ | 177 | ||||||||||||
Long-term debt, including current maturities | (10,449) | (224) | (10,673) | |||||||||||||||
31-Dec-12 | ||||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||||
($ in millions) | ||||||||||||||||||
Long-term investments | $ | 41 | $ | 133 | $ | 174 | ||||||||||||
Long-term debt, including current maturities | (10,450) | (284) | (10,734) | |||||||||||||||
Sales of available-for-sale securities were zero for years ended December 31, 2013 and 2012, and $81 million for the year ended December 31, 2011. | ||||||||||||||||||
Investments
Investments | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Investments [Abstract] | ' | |||||
Investments | ' | |||||
5. Investments | ||||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Short-term investments: | ||||||
Commercial paper, 2 months | $ | 98 | $ | - | ||
Federal government bonds, held-to-maturity, with average | ||||||
maturities of 3 and 5 months, respectively | 20 | 15 | ||||
Total short-term investments | $ | 118 | $ | 15 | ||
Long-term investments: | ||||||
Equity method investments: | ||||||
Conrail Inc. | $ | 1,075 | $ | 996 | ||
TTX Company | 404 | 383 | ||||
Meridian Speedway LLC | 278 | 281 | ||||
Pan Am Southern LLC | 155 | 155 | ||||
Other | 90 | 82 | ||||
Total equity method investments | 2,002 | 1,897 | ||||
Company-owned life insurance at net cash surrender value | 289 | 264 | ||||
Other investments | 148 | 139 | ||||
Total long-term investments | $ | 2,439 | $ | 2,300 | ||
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. We are amortizing the excess of the purchase price over Conrail's net equity using the principles of purchase accounting, based primarily on the estimated useful lives of Conrail's depreciable property and equipment, including the related deferred tax effect of the differences in book and tax accounting bases for such assets, as all of the purchase price at acquisition was allocable to Conrail's tangible assets and liabilities. | ||||||
At December 31, 2013, based on the funded status of Conrail's pension plans, we increased our proportional investment in Conrail by $37 million. This resulted in income of $34 million recorded to “Other comprehensive loss” and a combined federal and state deferred tax liability of $3 million. | ||||||
At December 31, 2012, based on the funded status of Conrail's pension plans, we decreased our proportional investment in Conrail by $7 million. This resulted in a loss of $6 million recorded to “Other comprehensive loss” and a combined federal and state deferred tax asset of $1 million. | ||||||
At December 31, 2013, the difference between our investment in Conrail and our share of Conrail's underlying net equity was $535 million. Our equity in the earnings of Conrail, net of amortization, included in “Other income - net” was $42 million, $34 million, and $31 million in 2013, 2012, and 2011, respectively. | ||||||
CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of 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 expenses for amounts due to CRC for operation of the Shared Assets Areas totaling $146 million in 2013, $147 million in 2012, and $131 million in 2011. Future minimum lease payments due to CRC under the Shared Assets Areas agreements are as follows: $35 million in each of 2014 through 2018 and $185 million thereafter. We provide certain general and administrative support functions to Conrail, the fees for which are billed in accordance with several service-provider arrangements and approximate $8 million annually. | ||||||
“Accounts payable” includes $187 million at December 31, 2013, and $178 million at December 31, 2012, due to Conrail for the operation of the Shared Assets Areas. In addition, “Other liabilities” includes $133 million at both December 31, 2013 and 2012, for long-term advances from Conrail, maturing 2035, that bear interest at an average rate of 4.4%. | ||||||
Properties
Properties | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Properties [Abstract] | ' | ||||||||||||
Properties | ' | ||||||||||||
6. Properties | |||||||||||||
Accumulated | Net Book | Depreciation | |||||||||||
At December 31, 2013 | Cost | Depreciation | Value | Rate | -1 | ||||||||
($ in millions) | |||||||||||||
Land | $ | 2,253 | $ | - | $ | 2,253 | - | ||||||
Roadway: | |||||||||||||
Rail and other track material | 5,934 | (1,782) | 4,152 | 2.46% | |||||||||
Ties | 4,464 | (1,100) | 3,364 | 3.24% | |||||||||
Ballast | 2,244 | (468) | 1,776 | 2.65% | |||||||||
Construction in process | 405 | - | 405 | - | |||||||||
Other roadway | 11,704 | (2,814) | 8,890 | 2.55% | |||||||||
Total roadway | 24,751 | (6,164) | 18,587 | ||||||||||
Equipment: | |||||||||||||
Locomotives | 4,814 | (1,918) | 2,896 | 3.42% | |||||||||
Freight cars | 3,225 | (1,429) | 1,796 | 2.78% | |||||||||
Computers and software | 513 | (292) | 221 | 11.07% | |||||||||
Construction in process | 139 | - | 139 | - | |||||||||
Other equipment | 862 | (316) | 546 | 6.15% | |||||||||
Total equipment | 9,553 | (3,955) | 5,598 | ||||||||||
Other property | 475 | (268) | 207 | 1.15% | |||||||||
Total properties | $ | 37,032 | $ | (10,387) | $ | 26,645 | |||||||
Accumulated | Net Book | Depreciation | |||||||||||
At December 31, 2012 | Cost | Depreciation | Value | Rate | -1 | ||||||||
($ in millions) | |||||||||||||
Land | $ | 2,240 | $ | - | $ | 2,240 | - | ||||||
Roadway: | |||||||||||||
Rail and other track material | 5,699 | (1,707) | 3,992 | 2.48% | |||||||||
Ties | 4,255 | (1,027) | 3,228 | 3.28% | |||||||||
Ballast | 2,128 | (437) | 1,691 | 2.61% | |||||||||
Construction in process | 378 | - | 378 | - | |||||||||
Other roadway | 11,223 | (2,636) | 8,587 | 2.57% | |||||||||
Total roadway | 23,683 | (5,807) | 17,876 | ||||||||||
Equipment: | |||||||||||||
Locomotives | 4,576 | (1,798) | 2,778 | 3.54% | |||||||||
Freight cars | 3,214 | (1,502) | 1,712 | 2.95% | |||||||||
Computers and software | 480 | (270) | 210 | 13.29% | |||||||||
Construction in process | 177 | - | 177 | - | |||||||||
Other equipment | 817 | (282) | 535 | 5.99% | |||||||||
Total equipment | 9,264 | (3,852) | 5,412 | ||||||||||
Other property | 471 | (263) | 208 | 1.31% | |||||||||
Total properties | $ | 35,658 | $ | (9,922) | $ | 25,736 | |||||||
(1) Composite annual depreciation rate for the underlying assets, excluding the effects of the amortization of any | |||||||||||||
deficiency (or excess) that resulted from our depreciation studies. | |||||||||||||
Roadway and equipment property includes $8 million at December 31, 2013, and $9 million at December 31, 2012, of assets recorded pursuant to capital leases with accumulated amortization of $3 million at both December 31, 2013 and 2012. Other property includes the costs of obtaining rights to natural resources of $336 million at both December 31, 2013 and 2012, with accumulated depletion of $195 million and $192 million, respectively. | |||||||||||||
Capitalized Interest | |||||||||||||
Total interest cost incurred on debt was $543 million in 2013, $515 million in 2012, and $474 million in 2011, of which $18 million, $20 million, and $19 million, respectively, was capitalized. | |||||||||||||
Current_Liabilities
Current Liabilities | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Current Liabilities [Abstract] | ' | |||||
Current Liabilities | ' | |||||
7. Current Liabilities | ||||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Accounts payable: | ||||||
Accounts and wages payable | $ | 685 | $ | 777 | ||
Due to Conrail (Note 5) | 187 | 178 | ||||
Casualty and other claims (Note 16) | 166 | 183 | ||||
Vacation liability | 130 | 129 | ||||
Other | 97 | 95 | ||||
Total | $ | 1,265 | $ | 1,362 | ||
Other current liabilities: | ||||||
Interest payable | $ | 121 | $ | 112 | ||
Postretirement and pension benefit obligations (Note 11) | 64 | 70 | ||||
Other | 85 | 81 | ||||
Total | $ | 270 | $ | 263 | ||
Debt
Debt | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Debt [Abstract] | ' | |||||
Debt | ' | |||||
8. Debt | ||||||
Debt with weighted average interest rates and maturities is presented below: | ||||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Notes and debentures: | ||||||
6.16% maturing to 2018 | $ | 2,082 | $ | 2,082 | ||
6.16% maturing 2019 to 2021 | 1,397 | 1,397 | ||||
3.22% maturing 2022 to 2024 | 1,600 | 1,200 | ||||
6.93% maturing 2025 to 2037 | 1,402 | 1,403 | ||||
4.81% maturing 2041 to 2043 | 1,833 | 1,333 | ||||
6.39% maturing 2097 to 2111 | 1,328 | 1,328 | ||||
Securitization borrowings, 1.23% | 200 | 300 | ||||
Other debt, 7.94% maturing 2024 | 101 | 151 | ||||
Discounts and premiums, net | (495) | (512) | ||||
Total debt | 9,448 | 8,682 | ||||
Less current maturities and short-term debt | (545) | (250) | ||||
Long-term debt excluding current maturities and short-term debt | $ | 8,903 | $ | 8,432 | ||
Long-term debt maturities subsequent to 2014 are as follows: | ||||||
2015 | $ | 1 | ||||
2016 | 500 | |||||
2017 | 550 | |||||
2018 | 600 | |||||
2019 and subsequent years | 7,252 | |||||
Total | $ | 8,903 | ||||
During the third quarter of 2012, we issued $600 million of senior notes at 2.90% due 2023 and paid $115 million of premium in exchange for $521 million of our previously issued notes ($156 million at 7.25% due 2031, $140 million at 5.64% due 2029, $115 million at 5.59% due 2025, $72 million at 7.80% due 2027, and $38 million at 7.05% due 2037). The premium is reflected as a reduction of debt in the Consolidated Balance Sheets, is included within “Debt repayments” in the 2012 Statement of Cash Flows, and is being amortized as additional interest expense over the term of the new debt. No gain or loss was recognized as a result of the debt exchange. | ||||||
We have in place a $350 million receivables securitization facility under which NSR sells substantially all of its eligible third-party receivables to a subsidiary, which in turn may transfer beneficial interests in the receivables to various commercial paper vehicles. Amounts received under the facility are accounted for as borrowings. Under this facility, we received $100 million and repaid $200 million in 2013. | ||||||
At December 31, 2013 and 2012, respectively, the amounts outstanding under the receivables securitization facility were $200 million at an average variable interest rate of 1.23% and $300 million at an average variable interest rate of 1.28%. Our intent is to refinance $100 million of these borrowings on a long-term basis, which is supported by our $750 million credit agreement (see below). Accordingly, these amounts outstanding are included in the line item “Long-term debt” and the remaining $100 million outstanding at December 31, 2013 and | ||||||
$200 million outstanding at December 31, 2012, are included in the line item “Short-term debt” in the Consolidated Balance Sheets. The facility has a 364-day term which was renewed and amended in October 2013 to run until October 2014. At December 31, 2013 and 2012, the receivables included in “Accounts receivable - net” serving as collateral for these borrowings totaled $747 million and $751 million, respectively. | ||||||
Issuance of Debt or Equity Securities | ||||||
We have authority from our Board of Directors to issue an additional $800 million of debt or equity securities through public or private sale. | ||||||
Credit Agreement, Debt Covenants, and Commercial Paper | ||||||
We have in place and available a $750 million, five-year credit agreement expiring in 2016, which provides for borrowings at prevailing rates and includes covenants. We had no amounts outstanding under this facility at December 31, 2013 and 2012, and we are in compliance with all of its covenants. | ||||||
We have the ability to issue commercial paper supported by the $750 million credit agreement. At December 31, 2013 and 2012, we had no outstanding commercial paper. | ||||||
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Lease Commitments [Abstract] | ' | ||||||||
Lease Commitments | ' | ||||||||
9. Lease Commitments | |||||||||
We are committed under long-term lease agreements, which expire on various dates through 2067, for equipment, lines of road and other property. The following amounts do not include payments to CRC under the Shared Assets Areas agreements (Note 5). Future minimum lease payments and operating lease expense are as follows: | |||||||||
Future Minimum Lease Payments | |||||||||
Operating | Capital | ||||||||
Leases | Leases | ||||||||
($ in millions) | |||||||||
2014 | $ | 80 | $ | 2 | |||||
2015 | 74 | 1 | |||||||
2016 | 62 | - | |||||||
2017 | 54 | - | |||||||
2018 | 50 | - | |||||||
2019 and subsequent years | 418 | 2 | |||||||
Total | $ | 738 | 5 | ||||||
Less imputed interest on capital leases at an average rate of 5.50% | (1) | ||||||||
Present value of minimum lease payments included in debt | $ | 4 | |||||||
Operating Lease Expense | |||||||||
2013 | 2012 | 2011 | |||||||
($ in millions) | |||||||||
Minimum rents | $ | 121 | $ | 129 | $ | 150 | |||
Contingent rents | 82 | 73 | 77 | ||||||
Total | $ | 203 | $ | 202 | $ | 227 | |||
Contingent rents are primarily comprised of usage-based rent paid to other railroads for joint facility operations. |
Other_Liabilities
Other Liabilities | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Other Liabilities [Abstract] | ' | |||||
Other Liabilities | ' | |||||
10. Other Liabilities | ||||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Net postretirement benefit obligations (Note 11) | $ | 566 | $ | 1,049 | ||
Net pension benefit obligations (Note 11) | 218 | 482 | ||||
Casualty and other claims (Note 16) | 214 | 258 | ||||
Long-term advances from Conrail (Note 5) | 133 | 133 | ||||
Deferred compensation | 120 | 118 | ||||
Other | 193 | 197 | ||||
Total | $ | 1,444 | $ | 2,237 | ||
Pensions_And_Other_Postretirem
Pensions And Other Postretirement Benefits | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Pensions And Other Postretirement Benefits [Abstract] | ' | |||||||||||
Pensions And Other Postretirement Benefits | ' | |||||||||||
11. 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 death benefits to eligible retired employees and their dependents; these plans can be amended or terminated at our option. Under our health care plans, a defined percentage of health care expenses is covered, reduced by any deductibles, co-payments, Medicare payments and, in some cases, coverage provided under other group insurance policies. | ||||||||||||
Pension and Other Postretirement Benefit Obligations and Plan Assets | ||||||||||||
Other Postretirement | ||||||||||||
Pension Benefits | Benefits | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
($ in millions) | ||||||||||||
Change in benefit obligations: | ||||||||||||
Benefit obligation at beginning of year | $ | 2,285 | $ | 2,027 | $ | 1,311 | $ | 1,206 | ||||
Service cost | 41 | 34 | 16 | 15 | ||||||||
Interest cost | 81 | 89 | 50 | 54 | ||||||||
Actuarial (gains) losses | (196) | 253 | (471) | 82 | ||||||||
Benefits paid | (120) | (118) | (51) | (46) | ||||||||
Benefit obligation at end of year | 2,091 | 2,285 | 855 | 1,311 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | 1,791 | 1,670 | 205 | 186 | ||||||||
Actual return on plan assets | 432 | 227 | 34 | 19 | ||||||||
Employer contribution | 12 | 12 | 51 | 46 | ||||||||
Benefits paid | (120) | (118) | (51) | (46) | ||||||||
Fair value of plan assets at end of year | 2,115 | 1,791 | 239 | 205 | ||||||||
Funded status at end of year | $ | 24 | $ | (494) | $ | (616) | $ | (1,106) | ||||
Amounts recognized in the Consolidated | ||||||||||||
Balance Sheets: | ||||||||||||
Noncurrent assets | $ | 256 | $ | 1 | $ | - | $ | - | ||||
Current liabilities | (14) | (13) | (50) | (57) | ||||||||
Noncurrent liabilities | (218) | (482) | (566) | (1,049) | ||||||||
Net amount recognized | $ | 24 | $ | (494) | $ | (616) | $ | (1,106) | ||||
Amounts recognized in other comprehensive | ||||||||||||
income (before tax): | ||||||||||||
Net (gain) loss | $ | 585 | $ | 1,160 | $ | (88) | $ | 459 | ||||
Prior service cost | 4 | 4 | - | - | ||||||||
Our accumulated benefit obligation for our defined benefit pension plans is $1.9 billion and $2.1 billion at | ||||||||||||
December 31, 2013 and 2012, respectively. Our unfunded pension plans, included above, which in all cases have no assets and therefore have an accumulated benefit obligation in excess of plan assets, had projected benefit obligations of $231 million at December 31, 2013, and $239 million at December 31, 2012, and had accumulated benefit obligations of $206 million at December 31, 2013, and $215 million at December 31, 2012. | ||||||||||||
Pension and Other Postretirement Benefit Cost Components | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
($ in millions) | ||||||||||||
Pension benefits: | ||||||||||||
Service cost | $ | 41 | $ | 34 | $ | 28 | ||||||
Interest cost | 81 | 89 | 92 | |||||||||
Expected return on plan assets | (142) | (138) | (140) | |||||||||
Amortization of net losses | 89 | 75 | 67 | |||||||||
Amortization of prior service cost | - | - | 3 | |||||||||
Net cost | $ | 69 | $ | 60 | $ | 50 | ||||||
Other postretirement benefits: | ||||||||||||
Service cost | $ | 16 | $ | 15 | $ | 14 | ||||||
Interest cost | 50 | 54 | 58 | |||||||||
Expected return on plan assets | (16) | (15) | (15) | |||||||||
Amortization of net losses | 58 | 53 | 44 | |||||||||
Net cost | $ | 108 | $ | 107 | $ | 101 | ||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||||||||
2013 | ||||||||||||
Other | ||||||||||||
Pension | Postretirement | |||||||||||
Benefits | Benefits | |||||||||||
($ in millions) | ||||||||||||
Net gain arising during the year | $ | 486 | $ | 489 | ||||||||
Amortization of net losses | 89 | 58 | ||||||||||
Total recognized in other comprehensive income | $ | 575 | $ | 547 | ||||||||
Total recognized in net periodic cost | ||||||||||||
and other comprehensive income | $ | 506 | $ | 439 | ||||||||
Net actuarial gains arising during the year to our pension benefits were due primarily to a higher than expected return on plan assets and an increase in our discount rate. Net actuarial gains arising during the year related to our other postretirement benefits were due to changes in our estimate of the allocation of medical claims costs between our Medicare eligible and non-Medicare eligible populations, lower estimates of prescription drug costs and an increase in our discount rate. | ||||||||||||
The estimated net losses for the pension benefit plans that will be amortized from accumulated other comprehensive loss into net periodic cost over the next year are $54 million. There is no expected amortization for the other postretirement benefit plans over the next year. | ||||||||||||
Pension and Other Postretirement Benefits Assumptions | ||||||||||||
Costs for pension and other postretirement benefits are determined based on actuarial valuations that reflect appropriate assumptions as of the measurement date, ordinarily the beginning of each year. The funded status of the plans is determined using appropriate assumptions as of each year end. A summary of the major assumptions follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Pension funded status: | ||||||||||||
Discount rate | 4.60% | 3.65% | 4.50% | |||||||||
Future salary increases | 4.50% | 4.50% | 4.50% | |||||||||
Other postretirement benefits funded status: | ||||||||||||
Discount rate | 4.65% | 3.80% | 4.55% | |||||||||
Pension cost: | ||||||||||||
Discount rate | 3.65% | 4.50% | 5.25% | |||||||||
Return on assets in plans | 8.25% | 8.25% | 8.75% | |||||||||
Future salary increases | 4.50% | 4.50% | 4.50% | |||||||||
Other postretirement benefits cost: | ||||||||||||
Discount rate | 3.80% | 4.55% | 5.40% | |||||||||
Return on assets in plans | 8.00% | 8.00% | 8.50% | |||||||||
Health care trend rate | 7.33% | 7.70% | 8.10% | |||||||||
To determine the discount rates, we utilize analyses in which the projected annual cash flows from the pension and other postretirement benefit plans were matched with yield curves based on an appropriate universe of high-quality corporate bonds. We use the results of the yield curve analyses to select the discount rates that match the payment streams of the benefits in these plans. | ||||||||||||
Health Care Cost Trend Assumptions | ||||||||||||
For measurement purposes at December 31, 2013, increases in the per capita cost of covered health care benefits were assumed to be 6.94% for 2014. It is assumed the rate will decrease gradually to an ultimate rate of 5.0% for 2019 and remain at that level thereafter. | ||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported in the consolidated financial statements. To illustrate, a one-percentage point change in the assumed health care cost trend would have the following effects: | ||||||||||||
One-percentage point | ||||||||||||
Increase | Decrease | |||||||||||
($ in millions) | ||||||||||||
Increase (decrease) in: | ||||||||||||
Total service and interest cost components | $ | 11 | $ | (9) | ||||||||
Postretirement benefit obligation | 100 | (84) | ||||||||||
Asset Management | ||||||||||||
Nine investment firms manage our defined benefit pension plans' assets under investment guidelines approved by our Benefits Investment Committee that is comprised of members of our management. Investments are restricted to domestic and international equity securities, domestic and international fixed income securities, and unleveraged exchange-traded options and financial futures. Limitations restrict investment concentration and use of certain derivative investments. The target asset allocation for equity is 75% of the pension plans' assets. The fixed income portfolio is invested in the Barclays Government/Credit Bond Index Fund, except that the Canadian earmarked portion of the portfolio is maintained in U.S. Treasury Bonds. Equity investments must be in liquid securities listed on national exchanges. No investment is permitted in our securities (except through commingled pension trust funds). Investment managers' returns are expected to meet or exceed selected market indices by prescribed margins. | ||||||||||||
Our pension plans' weighted-average asset allocations, by asset category, were as follows: | ||||||||||||
Percentage of plan | ||||||||||||
assets at December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Domestic equity securities | 54% | 52% | ||||||||||
International equity securities | 22% | 22% | ||||||||||
Debt securities | 20% | 24% | ||||||||||
Cash and cash equivalents | 4% | 2% | ||||||||||
Total | 100% | 100% | ||||||||||
The other postretirement benefit plan assets consist primarily of trust-owned variable life insurance policies with an asset allocation at December 31, 2013, of 65% in equity securities and 35% in debt securities compared with 58% in equity securities and 42% in debt securities at December 31, 2012. The target asset allocation for equity is between 50% and 75% of the plan's assets. | ||||||||||||
The plans' assumed future returns are based principally on the asset allocations and historic returns for the plans' asset classes determined from both actual plan returns and, over longer time periods, market returns for those asset classes. The expected long-term rate of return on plan assets is applied to a calculated value of plan assets that recognizes changes in fair value over a three-year period. We assumed a rate of return on pension plan assets of 8.25% for both 2013 and 2012 and 8.75% for 2011. A one-percentage point change to the rate of return assumption would result in an $18 million change to the net pension cost and, as a result, an equal change in “Compensation and benefits” expense. For 2014, we assume an 8.25% return on pension plan assets. | ||||||||||||
Fair Value of Plan Assets | ||||||||||||
Following is a description of the valuation methodologies used for pension plan assets measured at fair value. | ||||||||||||
Common stock: Shares held by the plan at year end are valued at the official closing price as defined by the exchange or at the most recent trade price of a security at the close of the active market. | ||||||||||||
Common collective trusts: Valued at the net asset value (NAV) of shares held by the plan at year end, based on the quoted market prices of the underlying assets of the trusts. The investments are valued using NAV as a practical expedient for fair value. The common collective trusts hold equity securities, fixed income securities and cash and cash equivalents. | ||||||||||||
Corporate bonds and other fixed income instruments: When available, valued at an estimated price at which a dealer would pay for a similar security at year end using observable market inputs. Otherwise, valued at an estimated price at which a dealer would pay for a similar security at year end using unobservable market inputs. | ||||||||||||
Municipal bonds: Valued at an estimated price at which a dealer would pay for a security at year end using observable market-based inputs. | ||||||||||||
Commingled funds: Valued at the NAV of shares held by the plan at year end, based on the quoted market prices of the underlying assets of the funds. The investments are valued using NAV as a practical expedient for fair value. The commingled funds hold equity securities. | ||||||||||||
Interest bearing cash: Short-term bills or notes are valued at an estimated price at which a dealer would pay for the security at year end using observable market-based inputs; money market funds are valued at the closing price reported on the active market on which the funds are traded. | ||||||||||||
United States Government and agencies securities: Valued at an estimated price at which a dealer would pay for a security at year end using observable as well as unobservable market-based inputs. Inflation adjusted instruments utilize the appropriate index factor. | ||||||||||||
Preferred stock: Shares held by the plan at year end are valued at the most recent trade price of a security at the close of the active market or at an estimated price at which a dealer would pay for a similar security at year end using primarily observable as well as unobservable market-based inputs. | ||||||||||||
The following table sets forth the pension plans' assets by valuation technique level, within the fair value hierarchy (there were no level 3 valued assets). | ||||||||||||
31-Dec-13 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
($ in millions) | ||||||||||||
Common stock | $ | 1,245 | $ | - | $ | 1,245 | ||||||
Common collective trusts: | ||||||||||||
Debt securities | - | 423 | 423 | |||||||||
International equity securities | - | 265 | 265 | |||||||||
Commingled funds | - | 95 | 95 | |||||||||
Interest bearing cash | 83 | - | 83 | |||||||||
U.S. government and agencies securities | - | 4 | 4 | |||||||||
Total investments | $ | 1,328 | $ | 787 | $ | 2,115 | ||||||
31-Dec-12 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
($ in millions) | ||||||||||||
Common stock | $ | 1,028 | $ | - | $ | 1,028 | ||||||
Common collective trusts: | ||||||||||||
Debt securities | - | 433 | 433 | |||||||||
International equity securities | - | 211 | 211 | |||||||||
Commingled funds | - | 84 | 84 | |||||||||
Interest bearing cash | 31 | - | 31 | |||||||||
U.S. government and agencies securities | - | 3 | 3 | |||||||||
Preferred stock | - | 1 | 1 | |||||||||
Total investments | $ | 1,059 | $ | 732 | $ | 1,791 | ||||||
Following is a description of the valuation methodologies used for other postretirement benefit plan assets measured at fair value. | ||||||||||||
Trust-owned life insurance: Valued at our share of the net assets of trust-owned life insurance issued by a major insurance company. The underlying investments of that trust consist of a U.S. stock account and a U.S. bond account, valued based upon the aggregate market values of the underlying investments. The loan asset account is valued at cash surrender value at the time of the loan, plus accrued interest. | ||||||||||||
The other postretirement benefit plan assets consisted of trust-owned life insurance with fair values of | ||||||||||||
$239 million and $205 million at December 31, 2013 and 2012, respectively, and are valued under level 2 of the fair value hierarchy. There were no level 1 or level 3 related assets. | ||||||||||||
The methods used to value pension and other postretirement benefit plan assets may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | ||||||||||||
Contributions and Estimated Future Benefit Payments | ||||||||||||
In 2014, we expect to contribute approximately $14 million to our unfunded pension plans for payments to pensioners and approximately $50 million to our other postretirement benefit plans for retiree health and death benefits. We do not expect to contribute to our funded pension plan in 2014. | ||||||||||||
Benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: | ||||||||||||
Other | ||||||||||||
Pension | Postretirement | |||||||||||
Benefits | Benefits | |||||||||||
($ in millions) | ||||||||||||
2014 | $ | 127 | $ | 50 | ||||||||
2015 | 130 | 51 | ||||||||||
2016 | 133 | 52 | ||||||||||
2017 | 135 | 53 | ||||||||||
2018 | 137 | 54 | ||||||||||
Years 2019 - 2023 | 693 | 272 | ||||||||||
The other postretirement benefits payments include an estimated average annual reduction due to the Medicare Part D subsidy of approximately $6 million. | ||||||||||||
Other Postretirement Coverage | ||||||||||||
Under collective bargaining agreements, Norfolk Southern and certain subsidiaries participate in a multi-employer benefit plan, which provides certain postretirement health care and life insurance benefits to eligible union employees. Premiums under this plan are expensed as incurred and totaled $41 million in 2013, $47 million in 2012, and $48 million in 2011. | ||||||||||||
Section 401(k) Plans | ||||||||||||
Norfolk Southern and certain subsidiaries provide Section 401(k) savings plans for employees. Under the plans, we match a portion of employee contributions, subject to applicable limitations. Our matching contributions, recorded as an expense, under these plans were $19 million in 2013, $18 million in 2012, and $17 million in 2011. | ||||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||
Stock-Based Compensation | ' | ||||||||
12. Stock-Based Compensation | |||||||||
Under the stockholder-approved Long-Term Incentive Plan (LTIP), the Compensation Committee (Committee), made up of nonemployee members of the Board of Directors or the Chief Executive Officer (if delegated such authority by the Committee), may grant stock options, stock appreciation rights (SARs), restricted stock units (RSUs), restricted shares, performance share units (PSUs), and performance shares, up to a maximum of 96,125,000 shares of our common stock (Common Stock). Of these shares, 5,000,000 were approved by the Board for issuance to non-officer participants; as a broad-based issuance, stockholder approval was not required. | |||||||||
The number of shares remaining for issuance under LTIP is reduced (i) by 1 for each award granted as a stock option or stock-settled SAR, or (ii) by 1.61 for an award made in the form other than a stock option or stock-settled SAR. Under the Board-approved Thoroughbred Stock Option Plan (TSOP), the Committee may grant stock options up to a maximum of 6,000,000 shares of Common Stock; as a broad-based stock option plan, stockholder approval of TSOP was not required. We use newly issued shares to satisfy any exercises and awards under LTIP and TSOP. Shares available for future grants are shown in the table below. | |||||||||
LTIP also permits the payment - on a current or a deferred basis and in cash or in stock - of dividend equivalents on shares of Common Stock covered by stock options, RSUs, or PSUs in an amount commensurate with regular quarterly dividends paid on Common Stock. With respect to stock options, if employment of the participant is terminated for any reason, including retirement, disability, or death, we have no further obligation to make any dividend equivalent payments. Regarding RSUs, if employment of the participant is terminated for any reason other than retirement, disability, or death, we have no further obligation to make any dividend equivalent payments. Should an employee terminate employment, they are not required to forfeit dividend equivalent payments already received. Outstanding PSUs do not currently receive dividend equivalent payments. | |||||||||
During the first quarter of 2013, the Committee granted stock options, RSUs and PSUs pursuant to LTIP and granted stock options pursuant to TSOP. Receipt of an award under LTIP was made contingent upon the awardee's execution of a non-compete agreement, and all awards under LTIP were made subject to forfeiture in the event the awardee “engages in competing employment” for a period of time following retirement. | |||||||||
Accounting Method | |||||||||
We account for our grants of stock options, RSUs, PSUs, and dividend equivalent payments in accordance with ASC 718 “Compensation-Stock Compensation.” Accordingly, all awards result in charges to net income while dividend equivalent payments, which are all related to equity classified awards, are charged to retained income. Related compensation costs were $54 million in 2013, $45 million in 2012, and $61 million in 2011. The total tax effects recognized in income in relation to stock-based compensation were benefits of $18 million in 2013, $14 million in 2012, and $20 million in 2011. | |||||||||
“Common stock issued - net” in the Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012, and 2011 includes tax benefits generated from tax deductions in excess of compensation costs recognized (excess tax benefits) for share-based awards of $38 million, $42 million, and $45 million, respectively. | |||||||||
Stock Options | |||||||||
Option exercise prices may not be less than the average of the high and low prices at which Common Stock is traded on the grant date and, effective for LTIP options granted after May 13, 2010, will be at least the higher of (i) the average of the high and low prices at which Common Stock is traded on the grant date, or (ii) the closing price of Common Stock on the grant date. All options are subject to a vesting period of at least one year, and the term of the option will not exceed ten years. | |||||||||
In the first quarter of 2013, 748,200 options were granted under LTIP and 268,500 options were granted under TSOP. In each case, the grant price was $69.83. In the first quarter of 2012, 567,300 options were granted under LTIP and 210,300 options were granted under TSOP, each with a grant price of $75.14. In the first quarter of 2011, 627,700 options were granted under LTIP and 257,000 options were granted under TSOP, each with a grant price of $62.75. For all years, options granted under LTIP and TSOP 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 LTIP who remain actively employed receive cash dividend equivalent payments for four years in an amount equal to the regular quarterly dividends paid on Common Stock. Dividend equivalent payments are not made on TSOP options. | |||||||||
The fair value of each option awarded in 2013, 2012, and 2011 was measured on the date of grant using a lattice-based option valuation model. Expected volatilities are based on implied volatilities from traded options on, and historical volatility of, Common Stock. Historical data is used to estimate option exercises and employee terminations 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 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. For options granted that include dividend equivalent payments, a dividend yield of zero was used. For 2013, 2012, and 2011, a dividend yield of 2.86%, 2.30%, and 2.55%, respectively, was used for LTIP options for periods where no dividend equivalent payments are made, as well as for TSOP options, which do not receive dividend equivalents. The assumptions for the LTIP and TSOP grants for the last three years are shown in the following table: | |||||||||
2013 | 2012 | 2011 | |||||||
Expected volatility range | 24% - 30% | 27% - 29% | 28% - 32% | ||||||
Average expected volatility | 26% | 27% | 28% | ||||||
Average risk-free interest rate | 1.88% | 1.96% | 3.42% | ||||||
Average expected option term LTIP | 9.0 years | 8.9 years | 8.5 years | ||||||
Per-share grant-date fair value LTIP | $20.40 | $23.84 | $22.26 | ||||||
Average expected option term TSOP | 8.9 years | 8.8 years | 8.5 years | ||||||
Per-share grant-date fair value TSOP | $15.84 | $19.55 | $18.10 | ||||||
Options granted (LTIP and TSOP) | 1,016,700 | 777,600 | 884,700 | ||||||
A summary of the status of changes in stock options is presented below: | |||||||||
Stock | Weighted Avg. | ||||||||
Options | Exercise Price | ||||||||
Outstanding at December 31, 2012 | 8,718,566 | $ | 47.61 | ||||||
Granted | 1,016,700 | 69.83 | |||||||
Exercised | (2,570,088) | 37.08 | |||||||
Forfeited | (13,000) | 67.42 | |||||||
Outstanding at December 31, 2013 | 7,152,178 | 54.52 | |||||||
The aggregate intrinsic value of options outstanding at December 31, 2013, was $274 million with a weighted average remaining contractual term of 5.5 years. Of these options outstanding, 4,105,878 were exercisable and had an aggregate intrinsic value of $188 million with a weighted average exercise price of $46.97 and a weighted average remaining contractual term of 3.7 years. | |||||||||
The following table provides information related to options exercised for the last three years: | |||||||||
2013 | 2012 | 2011 | |||||||
($ in millions) | |||||||||
Options exercised | 2,570,088 | 1,809,770 | 2,845,677 | ||||||
Total intrinsic value | $ | 106 | $ | 80 | $ | 127 | |||
Cash received upon exercise | 93 | 47 | 75 | ||||||
Related excess tax benefits realized | 31 | 28 | 42 | ||||||
At December 31, 2013, total unrecognized compensation related to options granted under LTIP and TSOP was $10 million, and is expected to be recognized over a weighted-average period of approximately 2.3 years. | |||||||||
Restricted Stock Units | |||||||||
RSU grants and grant-date fair values were 162,000 and $69.83 in 2013; 140,000 and $75.14 in 2012; and 177,400 and $62.75 in 2011. RSUs granted in all three years have a five-year restriction period and will be settled through issuance of shares of Common Stock. The RSU grants include cash dividend equivalent payments during the restriction period commensurate with regular quarterly dividends paid on Common Stock. During 2013, 298,400 of the RSUs granted in 2008 vested, with 178,991 shares of Common Stock issued net of withholding taxes. A summary of the status of and changes in RSUs is presented below: | |||||||||
Weighted- | |||||||||
Average | |||||||||
Grant-Date | |||||||||
RSUs | Fair Value | ||||||||
Nonvested at December 31, 2012 | 1,102,450 | $ | 51.75 | ||||||
Granted | 162,000 | 69.83 | |||||||
Vested | (298,400) | 50.47 | |||||||
Forfeited | (2,050) | 61.33 | |||||||
Nonvested at December 31, 2013 | 964,000 | 55.17 | |||||||
At December 31, 2013, total unrecognized compensation related to RSUs granted under LTIP was $8 million, and is expected to be recognized over a weighted-average period of approximately 3.2 years. The total related excess tax amounts realized in 2013, 2012, and 2011 were benefits of $2 million, $3 million, and $1 million, respectively. | |||||||||
Performance Share Units | |||||||||
PSUs provide for awards based on achievement of certain predetermined corporate performance goals (total shareholder return, return on average invested capital and operating ratio) at the end of a three-year cycle. PSU grants and grant-date fair values were 550,800 and $69.83 in 2013; 468,850 and $75.14 in 2012; and 580,900 and $62.75 in 2011. PSUs granted in 2013, 2012, and 2011 will be paid in the form of shares of Common Stock. During 2013, 577,585 of the PSUs granted in 2010 were earned, with 348,189 shares of Common Stock issued net of withholding taxes. A summary of the status of and changes in PSUs is presented below: | |||||||||
Weighted- | |||||||||
Average | |||||||||
Grant-Date | |||||||||
PSUs | Fair Value | ||||||||
Balance at December 31, 2012 | 1,870,200 | $ | 59.27 | ||||||
Granted | 550,800 | 69.83 | |||||||
Earned | (577,585) | 47.76 | |||||||
Unearned | (244,015) | 47.76 | |||||||
Forfeited | (3,600) | 69.09 | |||||||
Balance at December 31, 2013 | 1,595,800 | 68.81 | |||||||
At December 31, 2013, total unrecognized compensation related to PSUs granted under LTIP was $7 million, and is expected to be recognized over a weighted-average period of approximately 1.7 years. The total fair value of PSUs earned and paid in cash during 2011 totaled $27 million. The total related excess tax amounts realized in 2013, 2012, and 2011 were benefits of $5 million, $11 million, and $2 million, respectively. | |||||||||
Shares Available and Issued | |||||||||
Shares of Common Stock available for future grants and issued in connection with all features of LTIP and TSOP at December 31, were as follows: | |||||||||
2013 | 2012 | 2011 | |||||||
Available for future grants: | |||||||||
LTIP | 5,945,033 | 7,638,688 | 8,803,298 | ||||||
TSOP | 1,172,256 | 1,434,356 | 1,640,456 | ||||||
Issued: | |||||||||
LTIP | 2,765,986 | 2,337,179 | 3,077,739 | ||||||
TSOP | 331,282 | 153,423 | 193,060 | ||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||
Stockholders' Equity | ' | |||||||||||
13. Stockholders' Equity | ||||||||||||
Common Stock | ||||||||||||
Common Stock is reported net of shares held by our consolidated subsidiaries (Treasury Shares). Treasury Shares at December 31, 2013 and 2012, amounted to 20,320,777, with a cost of $19 million for both 2013 and 2012. | ||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
“Accumulated other comprehensive loss” reported in the Consolidated Statements of Changes in Stockholders' Equity consisted of the following: | ||||||||||||
Balance | Balance | |||||||||||
at Beginning | Net | Reclassification | at End | |||||||||
of Year | Gain (Loss) | Adjustments | of Year | |||||||||
($ in millions) | ||||||||||||
Year ended December 31, 2013 | ||||||||||||
Pensions and other postretirement liabilities | $ | (999) | $ | 600 | $ | 89 | -1 | $ | (310) | |||
Other comprehensive gain (loss) | ||||||||||||
of equity investees | (110) | 39 | - | (71) | ||||||||
Accumulated other comprehensive loss | $ | (1,109) | $ | 639 | $ | 89 | $ | (381) | ||||
Year ended December 31, 2012 | ||||||||||||
Pensions and other postretirement liabilities | $ | (928) | $ | (149) | $ | 78 | -1 | $ | (999) | |||
Other comprehensive loss of equity investees | (98) | (12) | - | (110) | ||||||||
Accumulated other comprehensive loss | $ | (1,026) | $ | (161) | $ | 78 | $ | (1,109) | ||||
(1)These items are included in the computation of net periodic pension and postretirement benefit costs. See | ||||||||||||
Note 11, “Pensions and Other Postretirement Benefits,” for additional information. | ||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||
“Other comprehensive income (loss)” reported in the Consolidated Statements of Changes in Stockholders' Equity consisted of the following: | ||||||||||||
Tax | ||||||||||||
Pretax | (Expense) | Net-of-Tax | ||||||||||
Amount | Benefit | Amount | ||||||||||
($ in millions) | ||||||||||||
Year ended December 31, 2013 | ||||||||||||
Net gain (loss) arising during the year: | ||||||||||||
Pensions and other postretirement benefits | $ | 975 | $ | (375) | $ | 600 | ||||||
Reclassification adjustments for costs | ||||||||||||
included in net income | 147 | (58) | 89 | |||||||||
Subtotal | 1,122 | (433) | 689 | |||||||||
Other comprehensive income of equity investees | 42 | (3) | 39 | |||||||||
Other comprehensive income | $ | 1,164 | $ | (436) | $ | 728 | ||||||
Year ended December 31, 2012 | ||||||||||||
Net gain (loss) arising during the year: | ||||||||||||
Pensions and other postretirement benefits | $ | (242) | $ | 93 | $ | (149) | ||||||
Reclassification adjustments for costs | ||||||||||||
included in net income | 128 | (50) | 78 | |||||||||
Subtotal | (114) | 43 | (71) | |||||||||
Other comprehensive loss of equity investees | (13) | 1 | (12) | |||||||||
Other comprehensive loss | $ | (127) | $ | 44 | $ | (83) | ||||||
Year ended December 31, 2011 | ||||||||||||
Net gain (loss) arising during the year: | ||||||||||||
Pensions and other postretirement benefits | $ | (439) | $ | 169 | $ | (270) | ||||||
Reclassification adjustments for costs | ||||||||||||
included in net income | 114 | (46) | 68 | |||||||||
Subtotal | (325) | 123 | (202) | |||||||||
Other comprehensive loss of equity investees | (21) | 2 | (19) | |||||||||
Other comprehensive loss | $ | (346) | $ | 125 | $ | (221) | ||||||
Stock_Repurchase_Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2013 | |
Stock Repurchase Program [Abstract] | ' |
Stock Repurchase Program | ' |
14. Stock Repurchase Program | |
We repurchased and retired 8.3 million, 18.8 million, and 30.2 million shares under our share repurchase program in 2013, 2012, and 2011, respectively, at a cost of $627 million, $1.3 billion, and $2.1 billion. On August 1, 2012, our Board of Directors authorized the repurchase of up to an additional 50 million shares of Common Stock through December 31, 2017. The timing and volume of purchases is guided by our assessment of market conditions and other pertinent factors. Any near-term share repurchases are expected to be made with internally generated cash, cash on hand, or proceeds from borrowings. Since the beginning of 2006, we have repurchased and retired 136.7 million shares of Common Stock at a total cost of $8.1 billion. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
15. Earnings Per Share | ||||||||||||||||||
The following table sets forth the calculation of basic and diluted earnings per share: | ||||||||||||||||||
Basic | Diluted | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
($ in millions except per share amounts, shares in millions) | ||||||||||||||||||
Net income | $ | 1,910 | $ | 1,749 | $ | 1,916 | $ | 1,910 | $ | 1,749 | $ | 1,916 | ||||||
Dividend equivalent payments | (7) | (9) | (9) | (4) | (4) | (2) | ||||||||||||
Income available to common stockholders | 1,903 | 1,740 | 1,907 | 1,906 | 1,745 | 1,914 | ||||||||||||
Weighted-average shares outstanding | 311.9 | 320.9 | 345.5 | 311.9 | 320.9 | 345.5 | ||||||||||||
Dilutive effect of outstanding options | ||||||||||||||||||
and share-settled awards | 3.6 | 4.3 | 5.8 | |||||||||||||||
Adjusted weighted-average shares outstanding | 315.5 | 325.2 | 351.3 | |||||||||||||||
Earnings per share | $ | 6.10 | $ | 5.42 | $ | 5.52 | $ | 6.04 | $ | 5.37 | $ | 5.45 | ||||||
In each year, dividend equivalent payments were made to holders of stock options and RSUs. For purposes of computing basic earnings per share, dividend equivalent payments made to holders of 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 diluted calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows: none in 2013, 2 million in 2012, and none in 2011. | ||||||||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
16. 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. | |
Two of our customers, DuPont and Sunbelt Chlor Alkai Partnership (“Sunbelt”), have rate reasonableness complaints pending before the STB alleging that our tariff rates for transportation of regulated movements are unreasonable. We dispute these allegations. Since June 1, 2009, in the case of DuPont, and since April 1, 2011, in the case of Sunbelt, we have been billing and collecting amounts based on the challenged tariff rates. We presently expect resolution of these cases to occur in 2014 and believe the estimate of 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 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. The defendant railroads appealed this certification, and on August 9, 2013, 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 that the outcome of these proceedings will have a material effect on our financial position, results of operations, or liquidity. A lawsuit filed on March 25, 2008, in the U.S. District Court for the District of Minnesota containing similar allegations against us and four other major railroads was voluntarily dismissed by the plaintiff subject to a tolling agreement entered into in August 2008. | |
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 estimable. | |
The Consolidated Balance Sheets reflect long-term receivables for estimated recoveries from our insurance carriers for claims associated with the January 6, 2005, derailment in Graniteville, S.C. In the first quarter of 2011, we received an unfavorable ruling for an arbitration claim with an insurance carrier, and were denied recovery of the contested portion of the claim. As a result, we recorded a $43 million charge for the receivables associated with the contested portion of the claim and a $15 million charge for other receivables affected by the ruling for which recovery is no longer probable. | |
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, which includes amounts for incurred but unasserted claims. We adjust the liability quarterly based upon our assessment and the results of the study. Our estimate of loss liabilities is subject to inherent limitation given the difficulty of predicting future events such as jury decisions, court interpretations, or legislative changes and as such the actual loss 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 into the future as far as can be reasonably determined. 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. The actuarial estimate includes a provision for claims that have been incurred but not reported. 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 estimated reasonably. Claims, if any, against third parties, for recovery of cleanup costs we have incurred are reflected as receivables (when collection is probable) in the Consolidated Balance Sheets and are not netted against the associated liability. 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 $58 million at December 31, 2013, and $42 million at December 31, 2012 (of which $15 million is classified as a current liability at December 31, 2013 and $12 million at December 31, 2012). At December 31, 2013, the liability represents our estimate of the probable cleanup and remediation costs based on available information at 142 known locations and projects compared with 146 locations and projects at December 31, 2012. At December 31, 2013, ten sites accounted for $30 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 12 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 EPA or comparable state authorities), estimates of our ultimate potential financial exposure for a given site or in the aggregate for all such sites are necessarily imprecise 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 in our traffic mix, particularly those classified as hazardous materials, pose special risks that we work diligently to minimize. 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 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 $1.0 billion per occurrence and/or policy year for bodily injury and property damage to third parties and up to $25 million and above $175 million per occurrence and/or policy year for property owned by us or in our care, custody, or control. | |
Purchase Commitments | |
At December 31, 2013, we had outstanding purchase commitments totaling approximately $353 million for long-term service contracts through 2019 as well as locomotives, track material, and freight cars, in connection with our capital programs through 2018. | |
Change-In-Control Arrangements | |
We have compensation agreements with certain officers and key employees that become operative only upon a change in control of Norfolk Southern, as defined in those agreements. The agreements provide generally for payments based on compensation at the time of a covered individual's involuntary or other specified termination and for certain other benefits. | |
Guarantees | |
In a number of instances, we have agreed to indemnify lenders for additional costs they may bear as a result of certain changes in laws or regulations applicable to their loans. Such changes may include impositions or modifications with respect to taxes, duties, reserves, liquidity, capital adequacy, special deposits, and similar requirements relating to extensions of credit by, deposits with, or the assets or liabilities of such lenders. The nature and timing of changes in laws or regulations applicable to our financings are inherently unpredictable, and therefore our exposure in connection with the foregoing indemnifications cannot be quantified. No liability has been recorded related to these indemnifications. | |
We have agreed to indemnify parties in a number of transactions for U.S. income tax withholding imposed as a result of changes in U.S. tax law. In all cases, we have the right to unwind the related transaction if the withholding cannot be avoided in the future. Because these indemnities would be triggered and are dependent upon a change in the tax law, the maximum exposure is not quantifiable. We do not believe it is likely that we will be required to make any payments under these indemnities. | |
At December 31, 2013, certain Norfolk Southern subsidiaries are contingently liable as guarantors with respect to $7 million of indebtedness, due in 2019, of an entity in which they have an ownership interest, the Terminal Railroad Association of St. Louis. Four other railroads are also jointly and severally liable as guarantors for this indebtedness. No liability has been recorded related to this guaranty. | |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | ' | |||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES | ||||||||||||
QUARTERLY FINANCIAL DATA | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
31-Mar | June 30 | 30-Sep | 31-Dec | |||||||||
($ in millions, except per share amounts) | ||||||||||||
2013 | ||||||||||||
Railway operating revenues | $ | 2,738 | $ | 2,802 | $ | 2,824 | $ | 2,881 | ||||
Income from railway operations | 691 | 836 | 849 | 881 | ||||||||
Net income | 450 | 465 | 482 | 513 | ||||||||
Earnings per share: | ||||||||||||
Basic | 1.43 | 1.47 | 1.55 | 1.66 | ||||||||
Diluted | 1.41 | 1.46 | 1.53 | 1.64 | ||||||||
2012 | ||||||||||||
Railway operating revenues | $ | 2,789 | $ | 2,874 | $ | 2,693 | $ | 2,684 | ||||
Income from railway operations | 745 | 934 | 731 | 714 | ||||||||
Net income | 410 | 524 | 402 | 413 | ||||||||
Earnings per share: | ||||||||||||
Basic | 1.24 | 1.62 | 1.26 | 1.31 | ||||||||
Diluted | 1.23 | 1.60 | 1.24 | 1.30 | ||||||||
Schedule_II_Valuation_And_Qual
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Schedule II - Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||
Schedule II - Valuation And Qualifying Accounts | ' | ||||||||||||||
Schedule II | |||||||||||||||
Norfolk Southern Corporation and Subsidiaries | |||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||
Years ended December 31, 2011, 2012, and 2013 | |||||||||||||||
($ in millions) | |||||||||||||||
Additions charged to: | |||||||||||||||
Beginning | Other | Ending | |||||||||||||
Balance | Expenses | Accounts | Deductions | Balance | |||||||||||
Year ended December 31, 2011 | |||||||||||||||
Valuation allowance (included net in | |||||||||||||||
deferred tax liability) for deferred | |||||||||||||||
tax assets | $ | 21 | $ | - | $ | - | $ | 2 | $ | 19 | |||||
Casualty and other claims | |||||||||||||||
included in other liabilities | 261 | 102 | -1 | 1 | 89 | -3 | 275 | ||||||||
Current portion of casualty and | |||||||||||||||
other claims included in | |||||||||||||||
accounts payable | 254 | 16 | 133 | -2 | 202 | -4 | 201 | ||||||||
Year ended December 31, 2012 | |||||||||||||||
Valuation allowance (included net in | |||||||||||||||
deferred tax liability) for deferred | |||||||||||||||
tax assets | $ | 19 | $ | - | $ | - | $ | - | $ | 19 | |||||
Casualty and other claims | |||||||||||||||
included in other liabilities | 275 | 76 | -1 | - | 93 | -3 | 258 | ||||||||
Current portion of casualty and | |||||||||||||||
other claims included in | |||||||||||||||
accounts payable | 201 | 18 | 157 | -2 | 193 | -4 | 183 | ||||||||
Year ended December 31, 2013 | |||||||||||||||
Valuation allowance (included net in | |||||||||||||||
deferred tax liability) for deferred | |||||||||||||||
tax assets | $ | 19 | $ | 13 | $ | - | $ | - | $ | 32 | |||||
Casualty and other claims | |||||||||||||||
included in other liabilities | 258 | 33 | -1 | - | 77 | -3 | 214 | ||||||||
Current portion of casualty and | |||||||||||||||
other claims included in | |||||||||||||||
accounts payable | 183 | 15 | 101 | -2 | 133 | -4 | 166 | ||||||||
(1)Includes adjustments for changes in estimates for prior years' claims. | |||||||||||||||
(2)Includes revenue refunds and overcharges provided through deductions from operating revenues and transfers | |||||||||||||||
from other accounts. | |||||||||||||||
(3)Payments and reclassifications to/from accounts payable. | |||||||||||||||
(4)Payments and reclassifications to/from other liabilities. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Description Of Business | ' |
Description of Business | |
Norfolk Southern Corporation is a Virginia-based holding company engaged principally in the rail transportation business, operating approximately 20,000 miles of road primarily in the East and Midwest. These consolidated financial statements include Norfolk Southern Corporation (Norfolk Southern) and its majority-owned and controlled subsidiaries (collectively, NS, we, us, and our). Norfolk Southern's major subsidiary is Norfolk Southern Railway Company (NSR). All significant intercompany balances and transactions have been eliminated in consolidation. | |
NSR and its railroad subsidiaries transport raw materials, intermediate products and finished goods classified in the following commodity groups (percent of total railway operating revenues in 2013): coal (23%); intermodal (21%); chemicals (15%); agriculture/consumer products/government (13%); metals/construction (12%); automotive (9%); and, paper/clay/forest products (7%). Although most of our customers are domestic, ultimate points of origination or destination for some of the products transported (particularly coal bound for export and some intermodal containers) may be outside the U.S. More than 80% of our railroad employees are covered by collective bargaining agreements with various labor unions. | |
Use Of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We periodically review our estimates, including those related to the recoverability and useful lives of assets, as well as liabilities for litigation, environmental remediation, casualty claims, income taxes and pension and other postretirement benefits. Changes in facts and circumstances may result in revised estimates. | |
Revenue Recognition | ' |
Revenue Recognition | |
Transportation revenue is recognized proportionally as a shipment moves from origin to destination, and related expenses are recognized as incurred. Refunds (which are primarily volume-based incentives) are recorded as a reduction to revenues on the basis of management's best estimate of projected liability, which is based on historical activity, current shipment counts and the expectation of future activity. We regularly monitor our contract refund liability and, historically, the estimates have not differed significantly from the amounts ultimately refunded. Switching, demurrage and other incidental service revenues are recognized when the services are performed. | |
Cash Equivalents | ' |
Cash Equivalents | |
“Cash equivalents” are highly liquid investments purchased three months or less from maturity. | |
Allowance For Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
Our allowance for doubtful accounts was $3 million at both December 31, 2013 and 2012. To determine our allowance for doubtful accounts, we evaluate historical loss experience (which has not been significant), the characteristics of current accounts, and general economic conditions and trends. | |
Materials And Supplies | ' |
Materials and Supplies | |
“Materials and supplies,” consisting mainly of fuel oil and items for maintenance of property and equipment, are stated at the lower of average cost or market. The cost of materials and supplies expected to be used in property additions or improvements is included in “Properties.” | |
Investments | ' |
Investments | |
Debt securities classified as “held-to-maturity” are reported at amortized cost. | |
Investments where we have the ability to exercise significant influence over but do not control the entity are accounted for using the equity method, whereby the investment is carried at the cost of the acquisition plus our equity in undistributed earnings or losses since acquisition. | |
Properties | ' |
Properties | |
“Properties” are stated principally at cost and are depreciated using the group method whereby assets with similar characteristics, use, and expected lives are grouped together in asset classes and depreciated using a composite depreciation rate. This methodology treats each asset class as a pool of resources, not as singular items. We use more than 60 depreciable asset classes. The primary depreciation method for our asset base is group life. Units of production is the principal method of depreciation for rail in high density corridors and for depletion of natural resources (Note 2). Remaining properties are depreciated generally using the straight-line method over the lesser of estimated service or lease lives. Depreciation in the Consolidated Statements of Cash Flows includes both depreciation and depletion. | |
Depreciation expense is based on our assumptions concerning expected service lives of our properties as well as the expected net salvage that will be received upon their retirement. In developing these assumptions, we utilize periodic depreciation studies that are performed by an independent outside firm of consulting engineers and approved by the Surface Transportation Board (STB). Our depreciation studies are conducted about every three years for equipment and every six years for track assets and other roadway property. The frequency of these studies is consistent with guidelines established by the STB. Key factors which are considered in developing average service life and salvage estimates include: | |
statistical analysis of historical retirement data and surviving asset records; | |
review of historical salvage received and current market rates; | |
review of our operations including expected changes in technology, customer demand, maintenance practices and asset management strategies; | |
review of accounting policies and assumptions; and | |
industry review and analysis. | |
The units of production depreciation rate for rail in high density corridors is derived based on consideration of annual gross ton miles as compared to the total or ultimate capacity of rail in these corridors. Our experience has shown that traffic density is a leading factor in determination of the expected service life of rail in high density corridors. In developing the respective depreciation rate, consideration is also given to several rail characteristics including age, weight, condition (new or second hand) and type (curve or straight). As a result, a composite depreciation rate is developed which is applied to the depreciable base. | |
We adjust our rates based on the results of these studies and implement the changes prospectively. The studies may also indicate that the recorded amount of accumulated depreciation is deficient (or in excess) of the amount indicated by the study. Any such deficiency (or excess) is amortized as a component of depreciation expense over the remaining service lives of the affected class of property, as determined by the study. For 2013, roadway depreciation rates ranged from 0.83% to 33.3% and equipment depreciation rates ranged from 1.40% to 33.33%. | |
We capitalize interest on major projects during the period of their construction. Expenditures, including those on leased assets, that extend an asset's useful life or increase its utility, are capitalized. Expenditures capitalized include those that are directly related to a capital project and may include materials, labor and equipment, in addition to an allocable portion of indirect costs that clearly relate to a particular project. Due to the capital intensive nature of the railroad industry, a significant portion of annual capital spending relates to the replacement of self-constructed assets. Because removal activities occur in conjunction with replacement, removal costs are estimated based on an average percentage of time employees replacing assets spend on removal functions. Costs related to repairs and maintenance activities that do not extend an asset's useful life or increase its utility are expensed when such repairs are performed. | |
When properties other than land and nonrail assets are sold or retired in the ordinary course of business, the cost of the assets, net of sale proceeds or salvage, is charged to accumulated depreciation, and no gain or loss is recognized in earnings. Actual historical cost values are retired when available, such as with equipment assets. The use of estimates in recording the retirement of certain roadway assets is necessary based on the impracticality of tracking individual asset costs. When retiring rail, ties and ballast, we use statistical curves that indicate the relative distribution of the age of the assets retired. The historical cost of other roadway assets is estimated using a combination of inflation indices specific to the rail industry and those published by the U.S. Bureau of Labor Statistics. The indices are applied to the replacement value based on the age of the retired assets. These indices are used because they closely correlate with the costs of roadway assets. Gains and losses on disposal of land and nonrail assets are included in “Other income - net” (Note 2) since such income is not a product of our railroad operations. | |
A retirement is considered abnormal if it does not occur in the normal course of business, if it relates to disposition of a large segment of an asset class and if the retirement varies significantly from the retirement profile identified through our depreciation studies, which inherently consider the impact of normal retirements on expected service lives and depreciation rates. Gains or losses from abnormal retirements are recognized in earnings. | |
We review the carrying amount of properties whenever events or changes in circumstances indicate that such carrying amount may not be recoverable based on future undiscounted cash flows. Assets that are deemed impaired as a result of such review are recorded at the lower of carrying amount or fair value. | |
Required Accounting Changes | ' |
Required Accounting Changes | |
In the first quarter of 2013, we prospectively adopted Accounting Standards Update (ASU) No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This update requires the disclosure of the effects of reclassifications out of Accumulated Other Comprehensive Loss on the respective line items in our Consolidated Statements of Income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. We don't have any such items. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, we are required to cross-reference other required GAAP disclosures to provide additional detail about those amounts. We include these disclosures in our “Stockholders' Equity” (Note 13) footnote. This update does not change the requirement to present the components of net income and other comprehensive income in either a single continuous statement or two separate consecutive statements, nor does it change the items currently reported in other comprehensive income. |
Other_Income_Net_Tables
Other Income - Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Income - Net [Abstract] | ' | ||||||||
Other Income - Net | ' | ||||||||
2013 | 2012 | 2011 | |||||||
($ in millions) | |||||||||
Income from natural resources: | |||||||||
Royalties from coal | $ | 50 | $ | 72 | $ | 86 | |||
Nonoperating depletion and depreciation | (6) | (6) | (7) | ||||||
Subtotal | 44 | 66 | 79 | ||||||
Gains and losses from sale of properties | 101 | 5 | 32 | ||||||
Rental income | 61 | 54 | 51 | ||||||
Equity in earnings of Conrail Inc. (Note 5) | 42 | 34 | 31 | ||||||
Corporate-owned life insurance - net | 25 | 13 | 8 | ||||||
Interest income | 8 | 8 | 9 | ||||||
Taxes on nonoperating property | (10) | (10) | (9) | ||||||
Charitable contributions | (11) | (9) | (9) | ||||||
Other interest expense - net | (12) | (9) | (3) | ||||||
Other | (15) | (23) | (29) | ||||||
Total | $ | 233 | $ | 129 | $ | 160 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||
Provisions For Income Taxes | ' | ||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
($ in millions) | |||||||||||||||
Current: | |||||||||||||||
Federal | $ | 695 | $ | 569 | $ | 432 | |||||||||
State | 98 | 74 | 43 | ||||||||||||
Total current taxes | 793 | 643 | 475 | ||||||||||||
Deferred: | |||||||||||||||
Federal | 270 | 339 | 506 | ||||||||||||
State | (8) | 27 | 21 | ||||||||||||
Total deferred taxes | 262 | 366 | 527 | ||||||||||||
Provision for income taxes | $ | 1,055 | $ | 1,009 | $ | 1,002 | |||||||||
Reconciliation Of Statutory Rate To Effective Rate | ' | ||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||
($ in millions) | |||||||||||||||
Federal income tax at statutory rate | $ | 1,038 | 35 | $ | 965 | 35 | $ | 1,021 | 35 | ||||||
State income taxes, net of federal tax effect | 69 | 2 | 69 | 3 | 69 | 2 | |||||||||
Internal Revenue Service (IRS) audit, settlement | - | - | (6) | - | (40) | (1) | |||||||||
State tax law changes, net of federal tax effect | (11) | - | (3) | - | (28) | (1) | |||||||||
Other, net | (41) | (1) | (16) | (1) | (20) | (1) | |||||||||
Provision for income taxes | $ | 1,055 | 36 | $ | 1,009 | 37 | $ | 1,002 | 34 | ||||||
Schedule Of Deferred Tax Assets And Liabilities | ' | ||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
($ in millions) | |||||||||||||||
Deferred tax assets: | |||||||||||||||
Compensation and benefits, including postretirement | $ | 462 | $ | 834 | |||||||||||
Accruals, including casualty and other claims | 114 | 139 | |||||||||||||
Other | 54 | 41 | |||||||||||||
Total gross deferred tax assets | 630 | 1,014 | |||||||||||||
Less valuation allowance | (32) | (19) | |||||||||||||
Net deferred tax asset | 598 | 995 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||
Property | (8,494) | (8,188) | |||||||||||||
Other | (466) | (472) | |||||||||||||
Total gross deferred tax liabilities | (8,960) | (8,660) | |||||||||||||
Net deferred tax liability | (8,362) | (7,665) | |||||||||||||
Net current deferred tax asset | 180 | 167 | |||||||||||||
Net long-term deferred tax liability | $ | (8,542) | $ | (7,832) | |||||||||||
Reconciliation Of Unrecognized Tax Benefits | ' | ||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
($ in millions) | |||||||||||||||
Balance at beginning of year | $ | 63 | $105 | ||||||||||||
Additions based on tax positions related to the current year | 3 | 6 | |||||||||||||
Additions for tax positions of prior years | 4 | - | |||||||||||||
Reductions for tax positions of prior years | (1) | (20 | ) | ||||||||||||
Settlements with taxing authorities | (2) | (23 | ) | ||||||||||||
Lapse of statutes of limitations | (2) | (5 | ) | ||||||||||||
Balance at end of year | $ | 65 | $63 | ||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value [Abstract] | ' | |||||||||||||||||
Schedule Of Carrying Amounts And Estimated Fair Values | ' | |||||||||||||||||
2013 | 2012 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||
($ in millions) | ||||||||||||||||||
Long-term investments | $ | 148 | $ | 177 | $ | 139 | $ | 174 | ||||||||||
Long-term debt, including current maturities | (9,348) | (10,673) | (8,482) | (10,734) | ||||||||||||||
Schedule Of Fair Value Of Long-term Assets And Liabilities | ' | |||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||||
($ in millions) | ||||||||||||||||||
Long-term investments | $ | 47 | $ | 130 | $ | 177 | ||||||||||||
Long-term debt, including current maturities | (10,449) | (224) | (10,673) | |||||||||||||||
31-Dec-12 | ||||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||||
($ in millions) | ||||||||||||||||||
Long-term investments | $ | 41 | $ | 133 | $ | 174 | ||||||||||||
Long-term debt, including current maturities | (10,450) | (284) | (10,734) | |||||||||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Investments [Abstract] | ' | |||||
Investments | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Short-term investments: | ||||||
Commercial paper, 2 months | $ | 98 | $ | - | ||
Federal government bonds, held-to-maturity, with average | ||||||
maturities of 3 and 5 months, respectively | 20 | 15 | ||||
Total short-term investments | $ | 118 | $ | 15 | ||
Long-term investments: | ||||||
Equity method investments: | ||||||
Conrail Inc. | $ | 1,075 | $ | 996 | ||
TTX Company | 404 | 383 | ||||
Meridian Speedway LLC | 278 | 281 | ||||
Pan Am Southern LLC | 155 | 155 | ||||
Other | 90 | 82 | ||||
Total equity method investments | 2,002 | 1,897 | ||||
Company-owned life insurance at net cash surrender value | 289 | 264 | ||||
Other investments | 148 | 139 | ||||
Total long-term investments | $ | 2,439 | $ | 2,300 | ||
Properties_Tables
Properties (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Properties [Abstract] | ' | ||||||||||||
Properties | ' | ||||||||||||
Accumulated | Net Book | Depreciation | |||||||||||
At December 31, 2013 | Cost | Depreciation | Value | Rate | -1 | ||||||||
($ in millions) | |||||||||||||
Land | $ | 2,253 | $ | - | $ | 2,253 | - | ||||||
Roadway: | |||||||||||||
Rail and other track material | 5,934 | (1,782) | 4,152 | 2.46% | |||||||||
Ties | 4,464 | (1,100) | 3,364 | 3.24% | |||||||||
Ballast | 2,244 | (468) | 1,776 | 2.65% | |||||||||
Construction in process | 405 | - | 405 | - | |||||||||
Other roadway | 11,704 | (2,814) | 8,890 | 2.55% | |||||||||
Total roadway | 24,751 | (6,164) | 18,587 | ||||||||||
Equipment: | |||||||||||||
Locomotives | 4,814 | (1,918) | 2,896 | 3.42% | |||||||||
Freight cars | 3,225 | (1,429) | 1,796 | 2.78% | |||||||||
Computers and software | 513 | (292) | 221 | 11.07% | |||||||||
Construction in process | 139 | - | 139 | - | |||||||||
Other equipment | 862 | (316) | 546 | 6.15% | |||||||||
Total equipment | 9,553 | (3,955) | 5,598 | ||||||||||
Other property | 475 | (268) | 207 | 1.15% | |||||||||
Total properties | $ | 37,032 | $ | (10,387) | $ | 26,645 | |||||||
Accumulated | Net Book | Depreciation | |||||||||||
At December 31, 2012 | Cost | Depreciation | Value | Rate | -1 | ||||||||
($ in millions) | |||||||||||||
Land | $ | 2,240 | $ | - | $ | 2,240 | - | ||||||
Roadway: | |||||||||||||
Rail and other track material | 5,699 | (1,707) | 3,992 | 2.48% | |||||||||
Ties | 4,255 | (1,027) | 3,228 | 3.28% | |||||||||
Ballast | 2,128 | (437) | 1,691 | 2.61% | |||||||||
Construction in process | 378 | - | 378 | - | |||||||||
Other roadway | 11,223 | (2,636) | 8,587 | 2.57% | |||||||||
Total roadway | 23,683 | (5,807) | 17,876 | ||||||||||
Equipment: | |||||||||||||
Locomotives | 4,576 | (1,798) | 2,778 | 3.54% | |||||||||
Freight cars | 3,214 | (1,502) | 1,712 | 2.95% | |||||||||
Computers and software | 480 | (270) | 210 | 13.29% | |||||||||
Construction in process | 177 | - | 177 | - | |||||||||
Other equipment | 817 | (282) | 535 | 5.99% | |||||||||
Total equipment | 9,264 | (3,852) | 5,412 | ||||||||||
Other property | 471 | (263) | 208 | 1.31% | |||||||||
Total properties | $ | 35,658 | $ | (9,922) | $ | 25,736 | |||||||
(1) Composite annual depreciation rate for the underlying assets, excluding the effects of the amortization of any | |||||||||||||
deficiency (or excess) that resulted from our depreciation studies. |
Current_Liabilities_Tables
Current Liabilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Current Liabilities [Abstract] | ' | |||||
Current Liabilities | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Accounts payable: | ||||||
Accounts and wages payable | $ | 685 | $ | 777 | ||
Due to Conrail (Note 5) | 187 | 178 | ||||
Casualty and other claims (Note 16) | 166 | 183 | ||||
Vacation liability | 130 | 129 | ||||
Other | 97 | 95 | ||||
Total | $ | 1,265 | $ | 1,362 | ||
Other current liabilities: | ||||||
Interest payable | $ | 121 | $ | 112 | ||
Postretirement and pension benefit obligations (Note 11) | 64 | 70 | ||||
Other | 85 | 81 | ||||
Total | $ | 270 | $ | 263 | ||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Debt [Abstract] | ' | |||||
Debt With Interest Rates And Maturities | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Notes and debentures: | ||||||
6.16% maturing to 2018 | $ | 2,082 | $ | 2,082 | ||
6.16% maturing 2019 to 2021 | 1,397 | 1,397 | ||||
3.22% maturing 2022 to 2024 | 1,600 | 1,200 | ||||
6.93% maturing 2025 to 2037 | 1,402 | 1,403 | ||||
4.81% maturing 2041 to 2043 | 1,833 | 1,333 | ||||
6.39% maturing 2097 to 2111 | 1,328 | 1,328 | ||||
Securitization borrowings, 1.23% | 200 | 300 | ||||
Other debt, 7.94% maturing 2024 | 101 | 151 | ||||
Discounts and premiums, net | (495) | (512) | ||||
Total debt | 9,448 | 8,682 | ||||
Less current maturities and short-term debt | (545) | (250) | ||||
Long-term debt excluding current maturities and short-term debt | $ | 8,903 | $ | 8,432 | ||
Long-term debt maturities subsequent to 2014 are as follows: | ||||||
2015 | $ | 1 | ||||
2016 | 500 | |||||
2017 | 550 | |||||
2018 | 600 | |||||
2019 and subsequent years | 7,252 | |||||
Total | $ | 8,903 |
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Lease Commitments [Abstract] | ' | ||||||||
Future Minimum Lease Payments | ' | ||||||||
Operating | Capital | ||||||||
Leases | Leases | ||||||||
($ in millions) | |||||||||
2014 | $ | 80 | $ | 2 | |||||
2015 | 74 | 1 | |||||||
2016 | 62 | - | |||||||
2017 | 54 | - | |||||||
2018 | 50 | - | |||||||
2019 and subsequent years | 418 | 2 | |||||||
Total | $ | 738 | 5 | ||||||
Less imputed interest on capital leases at an average rate of 5.50% | (1) | ||||||||
Present value of minimum lease payments included in debt | $ | 4 | |||||||
Operating Lease Expense | ' | ||||||||
2013 | 2012 | 2011 | |||||||
($ in millions) | |||||||||
Minimum rents | $ | 121 | $ | 129 | $ | 150 | |||
Contingent rents | 82 | 73 | 77 | ||||||
Total | $ | 203 | $ | 202 | $ | 227 | |||
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Other Liabilities [Abstract] | ' | |||||
Other Liabilities | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
($ in millions) | ||||||
Net postretirement benefit obligations (Note 11) | $ | 566 | $ | 1,049 | ||
Net pension benefit obligations (Note 11) | 218 | 482 | ||||
Casualty and other claims (Note 16) | 214 | 258 | ||||
Long-term advances from Conrail (Note 5) | 133 | 133 | ||||
Deferred compensation | 120 | 118 | ||||
Other | 193 | 197 | ||||
Total | $ | 1,444 | $ | 2,237 | ||
Pensions_And_Other_Postretirem1
Pensions And Other Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Pensions And Other Postretirement Benefits [Abstract] | ' | |||||||||||
Pension And Other Postretirement Benefit Obligations And Plan Assets | ' | |||||||||||
Other Postretirement | ||||||||||||
Pension Benefits | Benefits | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
($ in millions) | ||||||||||||
Change in benefit obligations: | ||||||||||||
Benefit obligation at beginning of year | $ | 2,285 | $ | 2,027 | $ | 1,311 | $ | 1,206 | ||||
Service cost | 41 | 34 | 16 | 15 | ||||||||
Interest cost | 81 | 89 | 50 | 54 | ||||||||
Actuarial (gains) losses | (196) | 253 | (471) | 82 | ||||||||
Benefits paid | (120) | (118) | (51) | (46) | ||||||||
Benefit obligation at end of year | 2,091 | 2,285 | 855 | 1,311 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | 1,791 | 1,670 | 205 | 186 | ||||||||
Actual return on plan assets | 432 | 227 | 34 | 19 | ||||||||
Employer contribution | 12 | 12 | 51 | 46 | ||||||||
Benefits paid | (120) | (118) | (51) | (46) | ||||||||
Fair value of plan assets at end of year | 2,115 | 1,791 | 239 | 205 | ||||||||
Funded status at end of year | $ | 24 | $ | (494) | $ | (616) | $ | (1,106) | ||||
Amounts recognized in the Consolidated | ||||||||||||
Balance Sheets: | ||||||||||||
Noncurrent assets | $ | 256 | $ | 1 | $ | - | $ | - | ||||
Current liabilities | (14) | (13) | (50) | (57) | ||||||||
Noncurrent liabilities | (218) | (482) | (566) | (1,049) | ||||||||
Net amount recognized | $ | 24 | $ | (494) | $ | (616) | $ | (1,106) | ||||
Amounts recognized in other comprehensive | ||||||||||||
income (before tax): | ||||||||||||
Net (gain) loss | $ | 585 | $ | 1,160 | $ | (88) | $ | 459 | ||||
Prior service cost | 4 | 4 | - | - | ||||||||
Pension And Other Postretirement Benefit Cost Components | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
($ in millions) | ||||||||||||
Pension benefits: | ||||||||||||
Service cost | $ | 41 | $ | 34 | $ | 28 | ||||||
Interest cost | 81 | 89 | 92 | |||||||||
Expected return on plan assets | (142) | (138) | (140) | |||||||||
Amortization of net losses | 89 | 75 | 67 | |||||||||
Amortization of prior service cost | - | - | 3 | |||||||||
Net cost | $ | 69 | $ | 60 | $ | 50 | ||||||
Other postretirement benefits: | ||||||||||||
Service cost | $ | 16 | $ | 15 | $ | 14 | ||||||
Interest cost | 50 | 54 | 58 | |||||||||
Expected return on plan assets | (16) | (15) | (15) | |||||||||
Amortization of net losses | 58 | 53 | 44 | |||||||||
Net cost | $ | 108 | $ | 107 | $ | 101 | ||||||
Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Loss | ' | |||||||||||
2013 | ||||||||||||
Other | ||||||||||||
Pension | Postretirement | |||||||||||
Benefits | Benefits | |||||||||||
($ in millions) | ||||||||||||
Net gain arising during the year | $ | 486 | $ | 489 | ||||||||
Amortization of net losses | 89 | 58 | ||||||||||
Total recognized in other comprehensive income | $ | 575 | $ | 547 | ||||||||
Total recognized in net periodic cost | ||||||||||||
and other comprehensive income | $ | 506 | $ | 439 | ||||||||
Pension And Other Postretirement Benefit Assumptions | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Pension funded status: | ||||||||||||
Discount rate | 4.60% | 3.65% | 4.50% | |||||||||
Future salary increases | 4.50% | 4.50% | 4.50% | |||||||||
Other postretirement benefits funded status: | ||||||||||||
Discount rate | 4.65% | 3.80% | 4.55% | |||||||||
Pension cost: | ||||||||||||
Discount rate | 3.65% | 4.50% | 5.25% | |||||||||
Return on assets in plans | 8.25% | 8.25% | 8.75% | |||||||||
Future salary increases | 4.50% | 4.50% | 4.50% | |||||||||
Other postretirement benefits cost: | ||||||||||||
Discount rate | 3.80% | 4.55% | 5.40% | |||||||||
Return on assets in plans | 8.00% | 8.00% | 8.50% | |||||||||
Health care trend rate | 7.33% | 7.70% | 8.10% | |||||||||
Health Care Cost Trend Assumptions | ' | |||||||||||
One-percentage point | ||||||||||||
Increase | Decrease | |||||||||||
($ in millions) | ||||||||||||
Increase (decrease) in: | ||||||||||||
Total service and interest cost components | $ | 11 | $ | (9) | ||||||||
Postretirement benefit obligation | 100 | (84) | ||||||||||
Pension Plan Weighted-Average Asset Allocations, By Asset Category | ' | |||||||||||
Percentage of plan | ||||||||||||
assets at December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Domestic equity securities | 54% | 52% | ||||||||||
International equity securities | 22% | 22% | ||||||||||
Debt securities | 20% | 24% | ||||||||||
Cash and cash equivalents | 4% | 2% | ||||||||||
Total | 100% | 100% | ||||||||||
Fair Value Of Plan Assets | ' | |||||||||||
31-Dec-13 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
($ in millions) | ||||||||||||
Common stock | $ | 1,245 | $ | - | $ | 1,245 | ||||||
Common collective trusts: | ||||||||||||
Debt securities | - | 423 | 423 | |||||||||
International equity securities | - | 265 | 265 | |||||||||
Commingled funds | - | 95 | 95 | |||||||||
Interest bearing cash | 83 | - | 83 | |||||||||
U.S. government and agencies securities | - | 4 | 4 | |||||||||
Total investments | $ | 1,328 | $ | 787 | $ | 2,115 | ||||||
31-Dec-12 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
($ in millions) | ||||||||||||
Common stock | $ | 1,028 | $ | - | $ | 1,028 | ||||||
Common collective trusts: | ||||||||||||
Debt securities | - | 433 | 433 | |||||||||
International equity securities | - | 211 | 211 | |||||||||
Commingled funds | - | 84 | 84 | |||||||||
Interest bearing cash | 31 | - | 31 | |||||||||
U.S. government and agencies securities | - | 3 | 3 | |||||||||
Preferred stock | - | 1 | 1 | |||||||||
Total investments | $ | 1,059 | $ | 732 | $ | 1,791 | ||||||
Estimated Future Benefit Payments | ' | |||||||||||
Other | ||||||||||||
Pension | Postretirement | |||||||||||
Benefits | Benefits | |||||||||||
($ in millions) | ||||||||||||
2014 | $ | 127 | $ | 50 | ||||||||
2015 | 130 | 51 | ||||||||||
2016 | 133 | 52 | ||||||||||
2017 | 135 | 53 | ||||||||||
2018 | 137 | 54 | ||||||||||
Years 2019 - 2023 | 693 | 272 | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule Of Assumptions Used For LTIP And TSOP Grants | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Expected volatility range | 24% - 30% | 27% - 29% | 28% - 32% | ||||||
Average expected volatility | 26% | 27% | 28% | ||||||
Average risk-free interest rate | 1.88% | 1.96% | 3.42% | ||||||
Average expected option term LTIP | 9.0 years | 8.9 years | 8.5 years | ||||||
Per-share grant-date fair value LTIP | $20.40 | $23.84 | $22.26 | ||||||
Average expected option term TSOP | 8.9 years | 8.8 years | 8.5 years | ||||||
Per-share grant-date fair value TSOP | $15.84 | $19.55 | $18.10 | ||||||
Options granted (LTIP and TSOP) | 1,016,700 | 777,600 | 884,700 | ||||||
Schedule Of Stock Option Activity | ' | ||||||||
Stock | Weighted Avg. | ||||||||
Options | Exercise Price | ||||||||
Outstanding at December 31, 2012 | 8,718,566 | $ | 47.61 | ||||||
Granted | 1,016,700 | 69.83 | |||||||
Exercised | (2,570,088) | 37.08 | |||||||
Forfeited | (13,000) | 67.42 | |||||||
Outstanding at December 31, 2013 | 7,152,178 | 54.52 | |||||||
Summary Of Stock Options Exercised | ' | ||||||||
2013 | 2012 | 2011 | |||||||
($ in millions) | |||||||||
Options exercised | 2,570,088 | 1,809,770 | 2,845,677 | ||||||
Total intrinsic value | $ | 106 | $ | 80 | $ | 127 | |||
Cash received upon exercise | 93 | 47 | 75 | ||||||
Related excess tax benefits realized | 31 | 28 | 42 | ||||||
Schedule Of Stock Available For Future Grants | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Available for future grants: | |||||||||
LTIP | 5,945,033 | 7,638,688 | 8,803,298 | ||||||
TSOP | 1,172,256 | 1,434,356 | 1,640,456 | ||||||
Issued: | |||||||||
LTIP | 2,765,986 | 2,337,179 | 3,077,739 | ||||||
TSOP | 331,282 | 153,423 | 193,060 | ||||||
Restricted Stock Units (RSUs) [Member] | ' | ||||||||
Schedule Of Other Share Activity | ' | ||||||||
Weighted- | |||||||||
Average | |||||||||
Grant-Date | |||||||||
RSUs | Fair Value | ||||||||
Nonvested at December 31, 2012 | 1,102,450 | $ | 51.75 | ||||||
Granted | 162,000 | 69.83 | |||||||
Vested | (298,400) | 50.47 | |||||||
Forfeited | (2,050) | 61.33 | |||||||
Nonvested at December 31, 2013 | 964,000 | 55.17 | |||||||
Performance Share Units (PSUs) [Member] | ' | ||||||||
Schedule Of Other Share Activity | ' | ||||||||
Weighted- | |||||||||
Average | |||||||||
Grant-Date | |||||||||
PSUs | Fair Value | ||||||||
Balance at December 31, 2012 | 1,870,200 | $ | 59.27 | ||||||
Granted | 550,800 | 69.83 | |||||||
Earned | (577,585) | 47.76 | |||||||
Unearned | (244,015) | 47.76 | |||||||
Forfeited | (3,600) | 69.09 | |||||||
Balance at December 31, 2013 | 1,595,800 | 68.81 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||
Balance | Balance | |||||||||||
at Beginning | Net | Reclassification | at End | |||||||||
of Year | Gain (Loss) | Adjustments | of Year | |||||||||
($ in millions) | ||||||||||||
Year ended December 31, 2013 | ||||||||||||
Pensions and other postretirement liabilities | $ | (999) | $ | 600 | $ | 89 | -1 | $ | (310) | |||
Other comprehensive gain (loss) | ||||||||||||
of equity investees | (110) | 39 | - | (71) | ||||||||
Accumulated other comprehensive loss | $ | (1,109) | $ | 639 | $ | 89 | $ | (381) | ||||
Year ended December 31, 2012 | ||||||||||||
Pensions and other postretirement liabilities | $ | (928) | $ | (149) | $ | 78 | -1 | $ | (999) | |||
Other comprehensive loss of equity investees | (98) | (12) | - | (110) | ||||||||
Accumulated other comprehensive loss | $ | (1,026) | $ | (161) | $ | 78 | $ | (1,109) | ||||
(1)These items are included in the computation of net periodic pension and postretirement benefit costs. See | ||||||||||||
Note 11, “Pensions and Other Postretirement Benefits,” for additional information. | ||||||||||||
Other Comprehensive Income (Loss) Of Equity Investees | ' | |||||||||||
Tax | ||||||||||||
Pretax | (Expense) | Net-of-Tax | ||||||||||
Amount | Benefit | Amount | ||||||||||
($ in millions) | ||||||||||||
Year ended December 31, 2013 | ||||||||||||
Net gain (loss) arising during the year: | ||||||||||||
Pensions and other postretirement benefits | $ | 975 | $ | (375) | $ | 600 | ||||||
Reclassification adjustments for costs | ||||||||||||
included in net income | 147 | (58) | 89 | |||||||||
Subtotal | 1,122 | (433) | 689 | |||||||||
Other comprehensive income of equity investees | 42 | (3) | 39 | |||||||||
Other comprehensive income | $ | 1,164 | $ | (436) | $ | 728 | ||||||
Year ended December 31, 2012 | ||||||||||||
Net gain (loss) arising during the year: | ||||||||||||
Pensions and other postretirement benefits | $ | (242) | $ | 93 | $ | (149) | ||||||
Reclassification adjustments for costs | ||||||||||||
included in net income | 128 | (50) | 78 | |||||||||
Subtotal | (114) | 43 | (71) | |||||||||
Other comprehensive loss of equity investees | (13) | 1 | (12) | |||||||||
Other comprehensive loss | $ | (127) | $ | 44 | $ | (83) | ||||||
Year ended December 31, 2011 | ||||||||||||
Net gain (loss) arising during the year: | ||||||||||||
Pensions and other postretirement benefits | $ | (439) | $ | 169 | $ | (270) | ||||||
Reclassification adjustments for costs | ||||||||||||
included in net income | 114 | (46) | 68 | |||||||||
Subtotal | (325) | 123 | (202) | |||||||||
Other comprehensive loss of equity investees | (21) | 2 | (19) | |||||||||
Other comprehensive loss | $ | (346) | $ | 125 | $ | (221) | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||
Schedule Of Earnings Per Share Calculation | ' | |||||||||||||||||
Basic | Diluted | |||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
($ in millions except per share amounts, shares in millions) | ||||||||||||||||||
Net income | $ | 1,910 | $ | 1,749 | $ | 1,916 | $ | 1,910 | $ | 1,749 | $ | 1,916 | ||||||
Dividend equivalent payments | (7) | (9) | (9) | (4) | (4) | (2) | ||||||||||||
Income available to common stockholders | 1,903 | 1,740 | 1,907 | 1,906 | 1,745 | 1,914 | ||||||||||||
Weighted-average shares outstanding | 311.9 | 320.9 | 345.5 | 311.9 | 320.9 | 345.5 | ||||||||||||
Dilutive effect of outstanding options | ||||||||||||||||||
and share-settled awards | 3.6 | 4.3 | 5.8 | |||||||||||||||
Adjusted weighted-average shares outstanding | 315.5 | 325.2 | 351.3 | |||||||||||||||
Earnings per share | $ | 6.10 | $ | 5.42 | $ | 5.52 | $ | 6.04 | $ | 5.37 | $ | 5.45 | ||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | ' | |||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||
Three Months Ended | ||||||||||||
31-Mar | June 30 | 30-Sep | 31-Dec | |||||||||
($ in millions, except per share amounts) | ||||||||||||
2013 | ||||||||||||
Railway operating revenues | $ | 2,738 | $ | 2,802 | $ | 2,824 | $ | 2,881 | ||||
Income from railway operations | 691 | 836 | 849 | 881 | ||||||||
Net income | 450 | 465 | 482 | 513 | ||||||||
Earnings per share: | ||||||||||||
Basic | 1.43 | 1.47 | 1.55 | 1.66 | ||||||||
Diluted | 1.41 | 1.46 | 1.53 | 1.64 | ||||||||
2012 | ||||||||||||
Railway operating revenues | $ | 2,789 | $ | 2,874 | $ | 2,693 | $ | 2,684 | ||||
Income from railway operations | 745 | 934 | 731 | 714 | ||||||||
Net income | 410 | 524 | 402 | 413 | ||||||||
Earnings per share: | ||||||||||||
Basic | 1.24 | 1.62 | 1.26 | 1.31 | ||||||||
Diluted | 1.23 | 1.60 | 1.24 | 1.30 | ||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating route miles | 20,000 | ' |
Employees covered by collective bargaining agreements | 80.00% | ' |
Allowance for doubtful accounts | $3 | $3 |
Number of depreciable asset classes used, low end of range | 60 | ' |
Depreciation studies description | 'Our depreciation studies are conducted about every three years for equipment and every six years for track assets and other roadway property. | ' |
Coal [Member] | ' | ' |
Market groups percent of total railway operating revenues | 23.00% | ' |
Intermodal [Member] | ' | ' |
Market groups percent of total railway operating revenues | 21.00% | ' |
Agriculture/Consumer Products/Government [Member] | ' | ' |
Market groups percent of total railway operating revenues | 13.00% | ' |
Chemicals [Member] | ' | ' |
Market groups percent of total railway operating revenues | 15.00% | ' |
Metals/Construction [Member] | ' | ' |
Market groups percent of total railway operating revenues | 12.00% | ' |
Paper/Clay/Forest Products [Member] | ' | ' |
Market groups percent of total railway operating revenues | 7.00% | ' |
Automotive [Member] | ' | ' |
Market groups percent of total railway operating revenues | 9.00% | ' |
Roadway [Member] | ' | ' |
Depreciation rate range minimum | 0.83% | ' |
Depreciation rate range maximum | 33.33% | ' |
Equipment [Member] | ' | ' |
Depreciation rate range minimum | 1.40% | ' |
Depreciation rate range maximum | 33.33% | ' |
Other_Income_Net_Details
Other Income - Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Income - Net [Abstract] | ' | ' | ' |
Royalties from coal | $50 | $72 | $86 |
Nonoperating depletion and depreciation | -6 | -6 | -7 |
Total income from natural resources | 44 | 66 | 79 |
Gains and losses from sale of properties | 101 | 5 | 32 |
Rental income | 61 | 54 | 51 |
Equity in the earnings of Conrail Inc. (Note 5) | 42 | 34 | 31 |
Corporate-owned life insurance-net | 25 | 13 | 8 |
Interest income | 8 | 8 | 9 |
Taxes on nonoperating property | -10 | -10 | -9 |
Charitable Contributions | -11 | -9 | -9 |
Other interest expense-net | -12 | -9 | -3 |
Other | -15 | -23 | -29 |
Total other income - net | $233 | $129 | $160 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Change in valuation allowance | $13 | $0 | ' |
Unrecognized tax benefits that would impact effective tax rate | 25 | ' | ' |
Unrecognized tax benefits, period increase (decrease) | -8 | ' | ' |
Interest expense related to unrecognized tax benefits | -1 | 1 | 10 |
Interest accrued related to unrecognized tax benefits | $4 | $3 | ' |
Income_Taxes_Provisions_For_In
Income Taxes (Provisions For Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Current federal | $695 | $569 | $432 |
Current state | 98 | 74 | 43 |
Total current income taxes | 793 | 643 | 475 |
Deferred federal | 270 | 339 | 506 |
Deferred state | -8 | 27 | 21 |
Total deferred income taxes | 262 | 366 | 527 |
Provision for income taxes | $1,055 | $1,009 | $1,002 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Statutory Rate To Effective Rate) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Federal income tax at statutory rate | $1,038 | $965 | $1,021 |
State income taxes, net of Federal tax effect | 69 | 69 | 69 |
State tax law changes, net of federal tax effect | -11 | -3 | -28 |
Internal Revenue Service audit, settlement | 0 | -6 | -40 |
Other, net | -41 | -16 | -20 |
Provision for income taxes | $1,055 | $1,009 | $1,002 |
Federal income tax at statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of Federal tax effect | 2.00% | 3.00% | 2.00% |
State tax law changes, net of federal tax effect | 0.00% | 0.00% | -1.00% |
Internal Revenue Service audit, settlement | 0.00% | 0.00% | -1.00% |
Other, net | -1.00% | -1.00% | -1.00% |
Provision for income taxes | 36.00% | 37.00% | 34.00% |
Income_Taxes_Schedule_Of_Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Taxes [Abstract] | ' | ' |
Compensation and benefits, including postretirement | $462 | $834 |
Accruals, including casualty and other claims | 114 | 139 |
Other | 54 | 41 |
Total gross deferred tax assets | 630 | 1,014 |
Less valuation allowance | -32 | -19 |
Net deferred tax asset | 598 | 995 |
Property | -8,494 | -8,188 |
Other | -466 | -472 |
Total gross deferred tax liabilities | -8,960 | -8,660 |
Net deferred tax liability | -8,362 | -7,665 |
Net current deferred tax asset | 180 | 167 |
Net long-term deferred tax liability | ($8,542) | ($7,832) |
Income_Taxes_Reconciliation_Of1
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | ' | ' |
Balance at beginning of year | $63 | $105 |
Additions based on tax positions related to current year | 3 | 6 |
Additions for tax positions of prior years | 4 | 0 |
Reductions for tax positions of prior years | -1 | -20 |
Settlements with taxing authorities | -2 | -23 |
Lapse of statutes of limitations | -2 | -5 |
Balance at end of year | $65 | $63 |
Fair_Value_Details
Fair Value (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value [Abstract] | ' | ' | ' |
Long-term investments, carrying value | $148 | $139 | ' |
Long-term investments, fair value | 177 | 174 | ' |
Long-term debt, including current maturities, carrying value | -9,348 | -8,482 | ' |
Long-term debt, including current maturities, fair value | -10,673 | -10,734 | ' |
Sales of available-for-sale securities | $0 | $0 | $81 |
Fair_Value_Schedule_of_Fair_Va
Fair Value (Schedule of Fair Value of Long-term Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Assets And Liabilities [Line Items] | ' | ' |
Long-term investments, fair value | $177 | $174 |
Long-term debt, including current maturities, fair value | -10,673 | -10,734 |
Fair Value Inputs Level1 [Member] | ' | ' |
Fair Value Assets And Liabilities [Line Items] | ' | ' |
Long-term investments, fair value | 47 | 41 |
Long-term debt, including current maturities, fair value | -10,449 | -10,450 |
Fair Value Inputs Level 2 [Member] | ' | ' |
Fair Value Assets And Liabilities [Line Items] | ' | ' |
Long-term investments, fair value | 130 | 133 |
Long-term debt, including current maturities, fair value | ($224) | ($284) |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Investments [Line Items] | ' | ' | ' |
Total short-term investments | $118 | $15 | ' |
Other | 90 | 82 | ' |
Total equity method investments | 2,002 | 1,897 | ' |
Company-owned life insurance at net cash surrender value | 289 | 264 | ' |
Other investments | 148 | 139 | ' |
Total long-term investments | 2,439 | 2,300 | ' |
Difference between investment in Conrail and share of Conrail's underlying net equity | 535 | ' | ' |
Equity in the earnings of Conrail | 42 | 34 | 31 |
Expenses for the use of the Shared Assets Area | 146 | 147 | 131 |
Future annual minimum payments due thereafter | 418 | ' | ' |
General and administrative support to Conrail | 8 | 8 | 8 |
Due to affiliate, current | 187 | 178 | ' |
Due to affiliate, noncurrent | 133 | 133 | ' |
Due to affiliate, noncurrent, maturity date | '2035 | '2035 | ' |
Due to affiliate, average interest rate | 4.40% | 4.40% | ' |
Conrail Inc. [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Equity method investments | 1,075 | 996 | ' |
Pension plan status change in investment, affiliate | 37 | -7 | ' |
Portion of pension plan change attributable to other comprehensive income (loss), affiliate | 34 | -6 | ' |
Portion of pension plan change attributable to deferred taxes, affiliate | -3 | 1 | ' |
Conrail Equity [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | 58.00% | ' | ' |
Conrail Voting [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Equity method investment, ownership percentage | 50.00% | ' | ' |
TTX Company [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Equity method investments | 404 | 383 | ' |
Meridian Speedway LLC [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Equity method investments | 278 | 281 | ' |
Pan Am Southern LLC [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Equity method investments | 155 | 155 | ' |
Commercial Paper [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Held-to-maturity securities | 98 | 0 | ' |
Federal Government Bonds [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Held-to-maturity securities | 20 | 15 | ' |
Shared Assets Areas CRC Lease [Member] | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' |
Future annual minimum payments, due next five years | 35 | ' | ' |
Future annual minimum payments due thereafter | $185 | ' | ' |
Investments_Parenthetical_Deta
Investments (Parenthetical) (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Abstract] | ' | ' |
Held To Maturity Commercial Paper Maturity Date | 2 | ' |
Average federal government bonds held-to-maturity, months | 3 | 5 |
Properties_Details
Properties (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | $37,032 | $35,658 | ' |
Accumulated Depreciation | -10,387 | -9,922 | ' |
Net Book Value | 26,645 | 25,736 | ' |
Railway property recorded pursuant to capital leases | 8 | 9 | ' |
Capital lease assets - accumulated depreciation | 3 | 3 | ' |
Costs of obtaining rights to natural resources | 336 | 336 | ' |
Costs of obtaining rights to natural resources - accumulated depletion | 195 | 192 | ' |
Interest cost incurred on debt | 543 | 515 | 474 |
Capitalized interest | 18 | 20 | 19 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 2,253 | 2,240 | ' |
Net Book Value | 2,253 | 2,240 | ' |
Depreciation Rate | 0.00% | 0.00% | ' |
Rail And Other Track Material [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 5,934 | 5,699 | ' |
Accumulated Depreciation | -1,782 | -1,707 | ' |
Net Book Value | 4,152 | 3,992 | ' |
Depreciation Rate | 2.46% | 2.48% | ' |
Ties [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 4,464 | 4,255 | ' |
Accumulated Depreciation | -1,100 | -1,027 | ' |
Net Book Value | 3,364 | 3,228 | ' |
Depreciation Rate | 3.24% | 3.28% | ' |
Ballast [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 2,244 | 2,128 | ' |
Accumulated Depreciation | -468 | -437 | ' |
Net Book Value | 1,776 | 1,691 | ' |
Depreciation Rate | 2.65% | 2.61% | ' |
Construction In Process - roadway [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 405 | 378 | ' |
Net Book Value | 405 | 378 | ' |
Depreciation Rate | 0.00% | 0.00% | ' |
Other Roadway [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 11,704 | 11,223 | ' |
Accumulated Depreciation | -2,814 | -2,636 | ' |
Net Book Value | 8,890 | 8,587 | ' |
Depreciation Rate | 2.55% | 2.57% | ' |
Total Roadway [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 24,751 | 23,683 | ' |
Accumulated Depreciation | -6,164 | -5,807 | ' |
Net Book Value | 18,587 | 17,876 | ' |
Locomotives [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 4,814 | 4,576 | ' |
Accumulated Depreciation | -1,918 | -1,798 | ' |
Net Book Value | 2,896 | 2,778 | ' |
Depreciation Rate | 3.42% | 3.54% | ' |
Freight Cars [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 3,225 | 3,214 | ' |
Accumulated Depreciation | -1,429 | -1,502 | ' |
Net Book Value | 1,796 | 1,712 | ' |
Depreciation Rate | 2.78% | 2.95% | ' |
Computers and Software [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 513 | 480 | ' |
Accumulated Depreciation | -292 | -270 | ' |
Net Book Value | 221 | 210 | ' |
Depreciation Rate | 11.07% | 13.29% | ' |
Construction In Process - Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 139 | 177 | ' |
Net Book Value | 139 | 177 | ' |
Depreciation Rate | 0.00% | 0.00% | ' |
Other Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 862 | 817 | ' |
Accumulated Depreciation | -316 | -282 | ' |
Net Book Value | 546 | 535 | ' |
Depreciation Rate | 6.15% | 5.99% | ' |
Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 9,553 | 9,264 | ' |
Accumulated Depreciation | -3,955 | -3,852 | ' |
Net Book Value | 5,598 | 5,412 | ' |
Other property [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Cost | 475 | 471 | ' |
Accumulated Depreciation | -268 | -263 | ' |
Net Book Value | $207 | $208 | ' |
Depreciation Rate | 1.15% | 1.31% | ' |
Current_Liabilities_Details
Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Liabilities [Abstract] | ' | ' |
Accounts and wages payable | $685 | $777 |
Casualty and other claims | 166 | 183 |
Due to Conrail | 187 | 178 |
Vacation liability | 130 | 129 |
Other accounts payable | 97 | 95 |
Total accounts payable | 1,265 | 1,362 |
Interest payable | 121 | 112 |
Postretirement benefit and pension obligations | 64 | 70 |
Other current liabilities | 85 | 81 |
Total other current liabilities | $270 | $263 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Cash premium, debt exchange | $115 | ' | ' |
Original debt | 521 | ' | ' |
Receivables securitization facility - total to be borrowed | ' | 350 | ' |
Proceeds From ShortTerm Debt | ' | 100 | ' |
Repayments of short-term debt | ' | 200 | ' |
Accounts receivable securitization balance | ' | 200 | 300 |
Average variable interest rate | ' | 1.23% | 1.28% |
Intent to refinance | ' | 100 | ' |
Credit agreement | ' | 750 | ' |
Short-term debt | ' | 100 | 200 |
Receivables securitization facility term, days | ' | 364 | ' |
Collateral for securitization borrowings | ' | 747 | 751 |
Authority to issue debt/equity securities | ' | 800 | ' |
Credit agreement term, years | ' | 5 | ' |
Credit agreement due date, year | ' | '2016 | ' |
Senior Note 2.90% Due 2023 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
New debt, debt exchange | 600 | ' | ' |
New rate, debt exchange | 2.90% | ' | ' |
New due date, debt exchange | '2023 | ' | ' |
Senior Note 7.25% Due 2031 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Original due date, year | '2031 | ' | ' |
Original debt | 156 | ' | ' |
Original rate | 7.25% | ' | ' |
Senior Note 5.64% Due 2029 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Original due date, year | '2029 | ' | ' |
Original debt | 140 | ' | ' |
Original rate | 5.64% | ' | ' |
Senior Note 5.59% Due 2025 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Original due date, year | '2025 | ' | ' |
Original debt | 115 | ' | ' |
Original rate | 5.59% | ' | ' |
Senior Note 7.80% Due 2027 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Original due date, year | '2027 | ' | ' |
Original debt | 72 | ' | ' |
Original rate | 7.80% | ' | ' |
Senior Note 7.05% Due 2037 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Original due date, year | '2037 | ' | ' |
Original debt | $38 | ' | ' |
Original rate | 7.05% | ' | ' |
Debt_Debt_With_Interest_Rates_
Debt (Debt With Interest Rates And Maturities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Securitization borrowings | $200 | $300 |
Discounts and premiums, net | -495 | -512 |
Total Debt | 9,448 | 8,682 |
Current maturities and short-term debt | -545 | -250 |
Long-term debt | 8,903 | 8,432 |
2015 long-term debt maturities | 1 | ' |
2016 long-term debt maturities | 500 | ' |
2017 long-term debt maturities | 550 | ' |
2018 long-term debt maturities | 600 | ' |
2019 and subsequent years long-term debt maturities | 7,252 | ' |
Debt Maturing To 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt maturing | 2,082 | 2,082 |
Long-term debt weighted average interest rate | 6.16% | ' |
Debt Maturing 2019 To 2021 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt maturing | 1,397 | 1,397 |
Long-term debt weighted average interest rate | 6.16% | ' |
Debt Maturing 2022 To 2024 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt maturing | 1,600 | 1,200 |
Long-term debt weighted average interest rate | 3.22% | ' |
Debt Maturing 2025 To 2037 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt maturing | 1,402 | 1,403 |
Long-term debt weighted average interest rate | 6.93% | ' |
Debt Maturing 2041 To 2043 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt maturing | 1,833 | 1,333 |
Long-term debt weighted average interest rate | 4.81% | ' |
Debt Maturing 2097 To 2111 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt maturing | 1,328 | 1,328 |
Long-term debt weighted average interest rate | 6.39% | ' |
Securitization Borrowings [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Securitization borrowings | 200 | 300 |
Long-term debt weighted average interest rate | 1.23% | ' |
Other Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other debt | $101 | $151 |
Long-term debt weighted average interest rate | 7.94% | ' |
Lease_Commitments_Details
Lease Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Lease Commitments [Abstract] | ' | ' | ' |
2014 - Operating Leases | $80 | ' | ' |
2015 - Operating Leases | 74 | ' | ' |
2016 - Operating Leases | 62 | ' | ' |
2017 - Operating Leases | 54 | ' | ' |
2018 - Operating Leases | 50 | ' | ' |
2019 and subsequent years - Operating Leases | 418 | ' | ' |
Total - Operating Leases | 738 | ' | ' |
2014 - Capital Leases | 2 | ' | ' |
2015 - Capital Leases | 1 | ' | ' |
2016 - Capital Leases | 0 | ' | ' |
2017 - Capital Leases | 0 | ' | ' |
2018 - Capital Leases | 0 | ' | ' |
2019 and subsequent years - Capital Leases | 2 | ' | ' |
Total - Capital Leases | 5 | ' | ' |
Imputed interest on capital leases | -1 | ' | ' |
Present value of minimum lease payments - capital leases | 4 | ' | ' |
Average rate of imputed interest on capital leases | 5.50% | ' | ' |
Operating lease expense - minimum rents | 121 | 129 | 150 |
Operating lease expense - contingent rents | 82 | 73 | 77 |
Total operating lease expense | $203 | $202 | $227 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Liabilities [Abstract] | ' | ' |
Net postretirement benefit obligations (Note 11) | $566 | $1,049 |
Net pension obligations (Note 11) | 218 | 482 |
Casualty and other claims (Note 16) | 214 | 258 |
Long-term advances from Conrail (Note 5) | 133 | 133 |
Deferred compensation | 120 | 118 |
Other | 193 | 197 |
Total | $1,444 | $2,237 |
Pensions_And_Other_Postretirem2
Pensions And Other Postretirement Benefits (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined benefit plan's accumulated benefit obligation | $1,900 | $2,100 | ' |
Unfunded pension plans projected benefit obligation | 231 | 239 | ' |
Unfunded pension plans accumulated benefit obligations | 206 | 215 | ' |
Assumed increases in per capita cost of covered health care benefits | 6.94% | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | ' |
Postretirement benefit plan target asset allocation for equity, minimum | 50.00% | ' | ' |
Postretirement benefit plan target asset allocation for equity, maximum | 75.00% | ' | ' |
Assumed rate of return on pension plan assets | 8.25% | 8.25% | 8.75% |
One-percentage point change to rate of return change to net pension (benefit) cost | 18 | ' | ' |
Estimated average annual reduction due to Medicare Part D subsidy | 6 | ' | ' |
Multi-employer benefit plan premiums | 41 | 47 | 48 |
Section 401 (k) savings plans matching contributions | 19 | 18 | 17 |
Per Capita Cost Rate Assumption2019 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Ultimate health care cost trend rate | 5.00% | ' | ' |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Estimated net loss for defined pension plans amortized from AOCI into net periodic cost | 54 | ' | ' |
Pension plan assets target allocation for equity | 75.00% | ' | ' |
Assumed rate of return on pension plan assets | 8.25% | 8.25% | 8.75% |
Expected contribution for the next fiscal year | 14 | ' | ' |
Employer contribution | 12 | 12 | ' |
OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Estimated net loss for other defined benefit postretirement plans amortized from AOCI into net periodic benefit cost | 0 | ' | ' |
Assumed rate of return on pension plan assets | 8.00% | 8.00% | 8.50% |
Expected contribution for the next fiscal year | 50 | ' | ' |
Employer contribution | 51 | 46 | ' |
Pension Plan Rate Of Return Assumption 2013 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assumed rate of return on pension plan assets | 8.25% | ' | ' |
Fair Value Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Trust-owned life insurance fair value | 239 | 205 | ' |
Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 65.00% | 58.00% | ' |
Common collective trusts | 265 | 211 | ' |
Equity Securities [Member] | Fair Value Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Common collective trusts | 265 | 211 | ' |
Debt Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 35.00% | 42.00% | ' |
Common collective trusts | 423 | 433 | ' |
Debt Securities [Member] | Fair Value Inputs Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Common collective trusts | $423 | $433 | ' |
Pensions_And_Other_Postretirem3
Pensions And Other Postretirement Benefits (Pension And Other Postretirement Benefit Obligations And Plan Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation at beginning of year | $2,285 | $2,027 | ' |
Service cost | 41 | 34 | 28 |
Interest cost | 81 | 89 | 92 |
Actuarial losses | -196 | 253 | ' |
Benefits paid | -120 | -118 | ' |
Benefit obligation at end of year | 2,091 | 2,285 | 2,027 |
Fair value of plan assets at beginning of year | 1,791 | 1,670 | ' |
Actual return on plan assets | 432 | 227 | ' |
Employer contribution | 12 | 12 | ' |
Fair value of plan assets at end of year | 2,115 | 1,791 | 1,670 |
Funded status at end of year | 24 | -494 | ' |
Noncurrent assets recognized in the Consolidated Balance Sheet | 256 | 1 | ' |
Current liabilities recognized in the Consolidated Balance Sheet | -14 | -13 | ' |
Noncurrent liabilities recognized in the Consolidated Balance Sheet | -218 | -482 | ' |
Net amount recognized | 24 | -494 | ' |
Net loss recognized in accumulated other comprehensive loss (pretax) | 585 | 1,160 | ' |
Prior service cost recognized in accumulated other comprehensive loss (pretax) | 4 | 4 | ' |
OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit obligation at beginning of year | 1,311 | 1,206 | ' |
Service cost | 16 | 15 | 14 |
Interest cost | 50 | 54 | 58 |
Actuarial losses | -471 | 82 | ' |
Benefits paid | -51 | -46 | ' |
Benefit obligation at end of year | 855 | 1,311 | 1,206 |
Fair value of plan assets at beginning of year | 205 | 186 | ' |
Actual return on plan assets | 34 | 19 | ' |
Employer contribution | 51 | 46 | ' |
Fair value of plan assets at end of year | 239 | 205 | 186 |
Funded status at end of year | -616 | -1,106 | ' |
Noncurrent assets recognized in the Consolidated Balance Sheet | 0 | 0 | ' |
Current liabilities recognized in the Consolidated Balance Sheet | -50 | -57 | ' |
Noncurrent liabilities recognized in the Consolidated Balance Sheet | -566 | -1,049 | ' |
Net amount recognized | -616 | -1,106 | ' |
Net loss recognized in accumulated other comprehensive loss (pretax) | -88 | 459 | ' |
Prior service cost recognized in accumulated other comprehensive loss (pretax) | $0 | $0 | ' |
Pensions_And_Other_Postretirem4
Pensions And Other Postretirement Benefits (Pension And Other Postretirement Benefit Cost Components) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $41 | $34 | $28 |
Interest cost | 81 | 89 | 92 |
Expected return on plan assets | -142 | -138 | -140 |
Amortization of net losses | 89 | 75 | 67 |
Amortization of prior service cost | 0 | 0 | 3 |
Net cost | 69 | 60 | 50 |
OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 16 | 15 | 14 |
Interest cost | 50 | 54 | 58 |
Expected return on plan assets | -16 | -15 | -15 |
Amortization of net losses | 58 | 53 | 44 |
Net cost | $108 | $107 | $101 |
Pensions_And_Other_Postretirem5
Pensions And Other Postretirement Benefits (Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net loss arising during the year | $486 |
Amortization of net losses | 89 |
Total recognized in other comprehensive loss | 575 |
Total recognized in net periodic cost and other comprehensive loss | 506 |
OPEB [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net loss arising during the year | 489 |
Amortization of net losses | 58 |
Total recognized in other comprehensive loss | 547 |
Total recognized in net periodic cost and other comprehensive loss | $439 |
Pensions_And_Other_Postretirem6
Pensions And Other Postretirement Benefits (Pension And Other Postretirement Benefit Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Return on assets in plans - assumption | 8.25% | 8.25% | 8.75% |
Funded Status [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate - assumption | 4.60% | 3.65% | 4.50% |
Future salary increases - assumption | 4.50% | 4.50% | 4.50% |
Other Postretirement Benefits Funded Status [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate - assumption | 4.65% | 3.80% | 4.55% |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate - assumption | 3.65% | 4.50% | 5.25% |
Return on assets in plans - assumption | 8.25% | 8.25% | 8.75% |
Future salary increases - assumption | 4.50% | 4.50% | 4.50% |
OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate - assumption | 3.80% | 4.55% | 5.40% |
Return on assets in plans - assumption | 8.00% | 8.00% | 8.50% |
Health care trend rate | 7.33% | 7.70% | 8.10% |
Pensions_And_Other_Postretirem7
Pensions And Other Postretirement Benefits (Health Care Cost Trend Assumptions) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Pensions And Other Postretirement Benefits [Abstract] | ' |
One-percentage point increase change in total service and interest cost components | $11 |
One-percentage point decrease change total service and interest cost components | -9 |
One-percentage point increase change in postretirement benefit obligations | 100 |
One-percentage point decrease change in postretirement benefit obligations | ($84) |
Pensions_And_Other_Postretirem8
Pensions And Other Postretirement Benefits (Pension Plan Weighted-Average Asset Allocations, By Asset Category) (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Pensions And Other Postretirement Benefits [Abstract] | ' | ' |
Domestic equity securities - pension plan asset allocation | 54.00% | 52.00% |
International equity securities - pension plan asset allocation | 22.00% | 22.00% |
Debt securities - pension plan allocation | 20.00% | 24.00% |
Cash and cash equivalents - pension plan allocation | 4.00% | 2.00% |
Total percentage of plan assets | 100.00% | 100.00% |
Pensions_And_Other_Postretirem9
Pensions And Other Postretirement Benefits (Fair Value Of Plan Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Common Stock | $1,245 | $1,028 |
Commingled funds | 95 | 84 |
Interest bearing cash | 83 | 31 |
U.S. government and agencies securities | 4 | 3 |
Preferred stock | ' | 1 |
Total pension plan assets | 2,115 | 1,791 |
Fair Value Inputs Level1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Common Stock | 1,245 | 1,028 |
Interest bearing cash | 83 | 31 |
Total pension plan assets | 1,328 | 1,059 |
Fair Value Inputs Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Commingled funds | 95 | 84 |
U.S. government and agencies securities | 4 | 3 |
Preferred stock | ' | 1 |
Total pension plan assets | 787 | 732 |
International Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Common collective trusts | 265 | 211 |
International Equity Securities [Member] | Fair Value Inputs Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Common collective trusts | 265 | 211 |
Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Common collective trusts | 423 | 433 |
Debt Securities [Member] | Fair Value Inputs Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Common collective trusts | $423 | $433 |
Recovered_Sheet1
Pensions And Other Postretirement Benefits (Estimated Future Benefit Payments) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 estimated future benefit payments | $127 |
2015 estimated future benefit payments | 130 |
2016 estimated future benefit payments | 133 |
2017 estimated future benefit payments | 135 |
2018 estimated future benefit payments | 137 |
Years 2019-2023 estimated future benefit payments | 693 |
OPEB [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 estimated future benefit payments | 50 |
2015 estimated future benefit payments | 51 |
2016 estimated future benefit payments | 52 |
2017 estimated future benefit payments | 53 |
2018 estimated future benefit payments | 54 |
Years 2019-2023 estimated future benefit payments | $272 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, except Share data, unless otherwise specified | 31-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
TSOP [Member] | TSOP [Member] | TSOP [Member] | TSOP [Member] | TSOP [Member] | TSOP [Member] | LTIP And TSOP [Member] | LTIP And TSOP [Member] | LTIP And TSOP [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Share Units (PSUs) [Member] | Performance Share Units (PSUs) [Member] | Performance Share Units (PSUs) [Member] | Non-Officer Participants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares available for grant | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 |
Amended LTIP plan-award granted as an option or stock appreciation right | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amended LTIP plan - award granted in a form other than option or stock appreciation right | 1.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation costs | ' | $54 | $45 | $61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefits associated with compensation costs | ' | 18 | 14 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits recognized for share-based awards | ' | 38 | 42 | 45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option term, in years | ' | 23-Jan-23 | 25-Jan-22 | 26-Jan-21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted | ' | 1,016,700 | ' | ' | 268,500 | 210,300 | 257,000 | ' | ' | ' | 1,016,700 | 777,600 | 884,700 | ' | ' | ' | ' | ' | ' | ' |
Grant price of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $69.83 | $75.14 | $62.75 | ' | ' | ' | ' | ' | ' | ' |
Award vesting period, grant anniversary | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield for period dividend equivalents paid | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield for period dividend equivalents not paid | ' | 2.86% | 2.30% | 2.55% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options outstanding | ' | 274 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term of options outstanding | ' | '5 years 6 months 0 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares exercisable | ' | 4,105,878 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercisable | ' | 188 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term of options exercisable | ' | '3 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable weighted average exercise price | ' | $46.97 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation related to stock options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | 8 | ' | ' | 7 | ' | ' | ' |
Unrecognized compensation, weighted average period of recognition | ' | '2 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 2 months 14 days | ' | ' | '1 year 8 months 12 days | ' | ' | ' |
Units other than stock options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 162,000 | 140,000 | 177,400 | 550,800 | 468,850 | 580,900 | ' |
Grant-date fair value of units granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $69.83 | $75.14 | $62.75 | $69.83 | $75.14 | $62.75 | ' |
Restriction period, in years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | 5 | ' | ' | ' | ' |
Fair value of units paid in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 27 | ' |
Excess tax benefit/expense realized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2 | $3 | $1 | $5 | $11 | $2 | ' |
Shares issued net of withholding taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 178,991 | ' | ' | 348,189 | ' | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule Of Assumptions Used For LTIP And TSOP Grants) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Expected volatility rate, minimum | ' | ' | ' | 24.00% | 27.00% | 28.00% |
Expected volatility rate, maximum | ' | ' | ' | 30.00% | 29.00% | 32.00% |
Average expected volatility rate | ' | ' | ' | 26.00% | 27.00% | 28.00% |
Average risk-free interest rate | ' | ' | ' | 1.88% | 1.96% | 3.42% |
Stock options granted | ' | ' | ' | 1,016,700 | ' | ' |
Ltip [Member] | ' | ' | ' | ' | ' | ' |
Average expected option term, in years | ' | ' | ' | '9 years 0 months 0 days | '8 years 10 months 24 days | '8 years 6 months 0 days |
Option per share grant-date fair value | ' | ' | ' | $20.40 | $23.84 | $22.26 |
Stock options granted | 748,200 | 567,300 | 627,700 | ' | ' | ' |
TSOP [Member] | ' | ' | ' | ' | ' | ' |
Average expected option term, in years | ' | ' | ' | '8 years 10 months 24 days | '8 years 9 months 19 days | '8 years 6 months 0 days |
Option per share grant-date fair value | ' | ' | ' | $15.84 | $19.55 | $18.10 |
Stock options granted | 268,500 | 210,300 | 257,000 | ' | ' | ' |
LTIP And TSOP [Member] | ' | ' | ' | ' | ' | ' |
Stock options granted | ' | ' | ' | 1,016,700 | 777,600 | 884,700 |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock-Based Compensation [Abstract] | ' | ' | ' |
Stock options outstanding at December 31, 2012 | 8,718,566 | ' | ' |
Stock options granted | 1,016,700 | ' | ' |
Stock options exercised | -2,570,088 | -1,809,770 | -2,845,677 |
Stock options forfeited | -13,000 | ' | ' |
Stock options outstanding at December 31, 2013 | 7,152,178 | 8,718,566 | ' |
Weighted average exercise price of stock options outstanding at December 31, 2012 | $47.61 | ' | ' |
Weighted average exercise price of stock options granted | $69.83 | ' | ' |
Weighted average exercise price of stock options exercised | $37.08 | ' | ' |
Weighted average exercise price of stock options forfeited | $67.42 | ' | ' |
Weighted average exercise price of stock options outstanding at December 31, 2013 | $54.52 | $47.61 | ' |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Stock Options Exercised) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock-Based Compensation [Abstract] | ' | ' | ' |
Options exercised | 2,570,088 | 1,809,770 | 2,845,677 |
Total intrinsic value | $106 | $80 | $127 |
Cash received upon exercise of options | 93 | 47 | 75 |
Related excess tax benefits realized | $31 | $28 | $42 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary Of Stock Awards Outstanding) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Balance at December 31, 2012 | 1,102,450 | ' | ' |
Granted | 162,000 | 140,000 | 177,400 |
Vested | -298,400 | ' | ' |
Forfeited | -2,050 | ' | ' |
Balance at December 31, 2013 | 964,000 | 1,102,450 | ' |
Weighted-average grant-date fair value at December 31, 2012 | $51.75 | ' | ' |
Weighted-average grant-date fair value of shares granted | $69.83 | $75.14 | $62.75 |
Weighted-average grant-date fair value of shares vested | $50.47 | ' | ' |
Weighted-average grant-date fair value of shares forfeited | $61.33 | ' | ' |
Weighted-average grant-date fair value at December 31, 2013 | $55.17 | $51.75 | ' |
Performance Share Units Psus [Member] | ' | ' | ' |
Balance at December 31, 2012 | 1,870,200 | ' | ' |
Granted | 550,800 | 468,850 | 580,900 |
Forfeited | -3,600 | ' | ' |
Performance share units earned - paid in Common Stock | -577,585 | ' | ' |
Performance share units unearned | -244,015 | ' | ' |
Balance at December 31, 2013 | 1,595,800 | 1,870,200 | ' |
Weighted-average grant-date fair value at December 31, 2012 | $59.27 | ' | ' |
Weighted-average grant-date fair value of shares granted | $69.83 | $75.14 | $62.75 |
Weighted-average grant-date fair value of shares forfeited | $69.09 | ' | ' |
Weighted-average grant-date fair value of shares earned - paid in Common Stock | $47.76 | ' | ' |
Weighted-average grant-date fair value of shares unearned | $47.76 | ' | ' |
Weighted-average grant-date fair value at December 31, 2013 | $68.81 | $59.27 | ' |
StockBased_Compensation_Schedu2
Stock-Based Compensation (Schedule Of Stock Available For Future Grants) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
TSOP [Member] | ' | ' | ' |
Available for future grants | 1,172,256 | 1,434,356 | 1,640,456 |
Shares of Common Stock issued | 331,282 | 153,423 | 193,060 |
Ltip [Member] | ' | ' | ' |
Available for future grants | 5,945,033 | 7,638,688 | 8,803,298 |
Shares of Common Stock issued | 2,765,986 | 2,337,179 | 3,077,739 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Shares held by consolidated subsidiaries | 20,320,777 | 20,320,777 | ' |
Value of shares held by consolidated subsidiaries | $19 | $19 | ' |
Pensions and other postretirement liabilities - beginning balance | 999 | 928 | ' |
Pensions and other postretirement liabilities - net gain (loss) | 600 | -149 | ' |
Pensions and other postretirement liabilities - reclassification adjustments | 89 | 78 | ' |
Pensions and other postretirement liabilities - ending balance | 310 | 999 | 928 |
Other comprehensive loss of equity investees - beginning balance | -110 | -98 | ' |
Other comprehensive loss of equity investees - net gain (loss) | 39 | -12 | ' |
Other comprehensive loss of equity investees - ending balance | -71 | -110 | -98 |
Accumulated other comprehensive loss - beginning balance | -1,109 | -1,026 | ' |
Accumulated other comprehensive loss - net gain loss | 639 | -161 | ' |
Accumulated other comprehensive loss - reclassification adjustment | 89 | 78 | ' |
Accumulated other comprehensive loss - ending balance | -381 | -1,109 | -1,026 |
Other comprehensive income (loss) of equity investees | 42 | -13 | -21 |
Other Comprehensive Income Loss Before Tax | 1,164 | -127 | -346 |
Other Comprehensive Income Loss Tax | -436 | 44 | 125 |
Other Comprehensive Income Loss Net of Tax | 728 | -83 | -221 |
Pretax Amount [Member] | ' | ' | ' |
Pensions and other postretirement benefits | 975 | -242 | -439 |
Reclassification adjustments for costs included in net income | 147 | 128 | 114 |
Subtotal | 1,122 | -114 | -325 |
Other comprehensive income (loss) of equity investees | 42 | -13 | -21 |
Other Comprehensive Income Loss Before Tax | 1,164 | -127 | -346 |
Tax Expense Benefit [Member] | ' | ' | ' |
Pensions and other postretirement benefits | -375 | 93 | 169 |
Reclassification adjustments for costs included in net income | -58 | -50 | -46 |
Subtotal | -433 | 43 | 123 |
Other comprehensive income (loss) of equity investees | -3 | 1 | 2 |
Other Comprehensive Income Loss Tax | -436 | 44 | 125 |
Net Of Tax Amount [Member] | ' | ' | ' |
Pensions and other postretirement benefits | 600 | -149 | -270 |
Reclassification adjustments for costs included in net income | 89 | 78 | 68 |
Subtotal | 689 | -71 | -202 |
Other comprehensive income (loss) of equity investees | 39 | -12 | -19 |
Other Comprehensive Income Loss Net of Tax | $728 | ($83) | ($221) |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2013 |
Stock Repurchase Program [Abstract] | ' | ' | ' | ' |
New stock repurchase program | ' | ' | ' | 50 |
Stock repurchased and retired during period, shares | 8.3 | 18.8 | 30.2 | ' |
Stock repurchased and retired during period, cost | $627 | $1,288 | $2,051 | ' |
Stock repurchased and retired since beginning of stock repurchase program in 2006, shares | 136.7 | ' | ' | ' |
Stock repurchased and retired since beginning of stock repurchase program in 2006, cost | $8,100 | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $513 | $482 | $465 | $450 | $413 | $402 | $524 | $410 | $1,910 | $1,749 | $1,916 |
Basic earnings per share | $1.66 | $1.55 | $1.47 | $1.43 | $1.31 | $1.26 | $1.62 | $1.24 | $6.10 | $5.42 | $5.52 |
Diluted earnings per share | $1.64 | $1.53 | $1.46 | $1.41 | $1.30 | $1.24 | $1.60 | $1.23 | $6.04 | $5.37 | $5.45 |
Options having exercise prices exceeding average market price | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2 | 0 |
Earnings Per Share Basic [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,910 | 1,749 | 1,916 |
Dividend equivalent payments | ' | ' | ' | ' | ' | ' | ' | ' | -7 | -9 | -9 |
Income available to common stockholders, basic | ' | ' | ' | ' | ' | ' | ' | ' | 1,903 | 1,740 | 1,907 |
Weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 311.9 | 320.9 | 345.5 |
E P S Diluted [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,910 | 1,749 | 1,916 |
Dividend equivalent payments | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -4 | -2 |
Income available to common stockholders, diluted | ' | ' | ' | ' | ' | ' | ' | ' | $1,906 | $1,745 | $1,914 |
Weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 311.9 | 320.9 | 345.5 |
Dilutive effect of outstanding options and share-settled awards | ' | ' | ' | ' | ' | ' | ' | ' | 3.6 | 4.3 | 5.8 |
Adjusted weighted-average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 315.5 | 325.2 | 351.3 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies [Abstract] | ' | ' | ' |
Arbitration decision expense | $43 | ' | ' |
Other arbitration expense | 15 | ' | ' |
Environmental liability | ' | 58 | 42 |
Current environmental liability | ' | 15 | 12 |
Known cleanup and remediation locations and projects | ' | 142 | 146 |
Number of sites - representative sample | ' | 10 | ' |
Liability associated with those sites | ' | 30 | ' |
Environmental locations representative sample liability payout period, in years | ' | 5 | ' |
Responsible locations with another party | ' | 12 | ' |
Self-insured injury/damage to third party - up to | ' | 50 | ' |
Self-insured injury/damage to third parties - and above, per occurrence | ' | 1,025 | ' |
Self-insured NS owned property - up to | ' | 25 | ' |
Self-insured NS owned property - and above, per occurrence | ' | 175 | ' |
Purchase commitments, long-term service contracts | ' | 353 | ' |
Liable Guarantors Of Indebtedness | ' | $7 | ' |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Data (Unaudited) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Railway operating revenues | $2,881 | $2,824 | $2,802 | $2,738 | $2,684 | $2,693 | $2,874 | $2,789 | $11,245 | $11,040 | $11,172 |
Income from railway operations | 881 | 849 | 836 | 691 | 714 | 731 | 934 | 745 | 3,257 | 3,124 | 3,213 |
Net income | $513 | $482 | $465 | $450 | $413 | $402 | $524 | $410 | $1,910 | $1,749 | $1,916 |
Basic | $1.66 | $1.55 | $1.47 | $1.43 | $1.31 | $1.26 | $1.62 | $1.24 | $6.10 | $5.42 | $5.52 |
Diluted | $1.64 | $1.53 | $1.46 | $1.41 | $1.30 | $1.24 | $1.60 | $1.23 | $6.04 | $5.37 | $5.45 |
Schedule_II_Valuation_And_Qual1
Schedule II - Valuation And Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Valuation Allowance (Included Net In Deferred Tax Liability) For Deferred Tax Assets [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Beginning Balance | $19 | $19 | $21 | |||
Expenses | 13 | 0 | 0 | |||
Other Accounts | 0 | 0 | 0 | |||
Deductions | 0 | 0 | 2 | |||
Ending Balance | 32 | 19 | 19 | |||
Casualty And Other Claims Included In Other Liabilities [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Beginning Balance | 258 | 275 | 261 | |||
Expenses | 33 | [1] | 76 | [1] | 102 | [1] |
Other Accounts | 0 | 0 | 1 | |||
Deductions | 77 | [2] | 93 | [2] | 89 | [2] |
Ending Balance | 214 | 258 | 275 | |||
Current Portion Of Casualty And Other Claims Included In Accounts Payable [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Beginning Balance | 183 | 201 | 254 | |||
Expenses | 15 | 18 | 16 | |||
Other Accounts | 101 | [3] | 157 | [3] | 133 | [3] |
Deductions | 133 | [4] | 193 | [4] | 202 | [4] |
Ending Balance | $166 | $183 | $201 | |||
[1] | Includes adjustments for changes in estimates for prior years' claims. | |||||
[2] | Payments and reclassifications to/from accounts payable. | |||||
[3] | Includes revenue refunds and overcharges provided through deductions from operating revenues and transfers from other accounts. | |||||
[4] | Payments and reclassifications to/from other liabilities. |