Norfolk Southern (NSC) 10-Q 23 Apr 14 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2014
Document And Entity Information [Abstract]	'
Document Type	'10-Q
Amendment Flag	'false
Document Period End Date	31-Mar-14
Entity Registrant Name	'NORFOLK SOUTHERN CORP
Entity Central Index Key	'0000702165
Current Fiscal Year End Date	'--12-31
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q1
Entity Filer Category	'Large Accelerated Filer
Entity Common Stock, Shares Outstanding	309,646,086

Consolidated_Statements_Of_Inc

Consolidated Statements Of Income (Unaudited) (USD $)	3 Months Ended
In Millions, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Consolidated Statements Of Income [Abstract]	'	'
Railway operating revenues	$2,689	$2,738
Railway operating expenses:	'	'
Compensation and benefits	740	780
Purchased services and rents	392	393
Fuel	432	429
Depreciation	237	227
Materials and other	221	218
Total railway operating expenses	2,022	2,047
Income from railway operations	667	691
Other income, net	26	135
Interest expense on debt	139	129
Income before income taxes	554	697
Provision for income taxes	186	247
Net income	$368	$450
Per share amounts:	'	'
Basic	$1.18	$1.43
Diluted	$1.17	$1.41
Dividends	$0.54	$0.50

Consolidated_Statements_Of_Com

Consolidated Statements Of Comprehensive Income (Unaudited) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Consolidated Statements Of Comprehensive Income [Abstract]	'	'
Net income	$368	$450
Other comprehensive income, before tax:	'	'
Pension and other postretirement benefits	299	36
Other comprehensive income (loss) of equity investees	3	1
Other comprehensive income, before tax	302	37
Income tax expense related to items of other comprehensive income	-114	-14
Other comprehensive income, net of tax	188	23
Total comprehensive income	$556	$473

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Assets	'	'
Cash and cash equivalents	$1,522	$1,443
Short-term investments	10	118
Accounts receivable, net	1,109	1,024
Materials and supplies	240	223
Deferred income taxes	179	180
Other current assets	70	87
Total current assets	3,130	3,075
Investments	2,466	2,439
Properties less accumulated depreciation of $10,512 and $10,387, respectively	26,768	26,645
Other assets	336	324
Total assets	32,700	32,483
Liabilities and stockholders' equity	'	'
Accounts payable	1,194	1,265
Short-term debt	0	100
Income and other taxes	323	225
Other current liabilities	359	270
Current maturities of long-term debt	445	445
Total current liabilities	2,321	2,305
Long-term debt	8,909	8,903
Other liabilities	1,130	1,444
Deferred income taxes	8,647	8,542
Total liabilities	21,007	21,194
Stockholders' equity:	'	'
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 309,646,086 and 308,878,402 shares, respectively, net of treasury shares	311	310
Additional paid-in capital	2,085	2,021
Accumulated other comprehensive loss	-193	-381
Retained income	9,490	9,339
Total stockholders' equity	11,693	11,289
Total liabilities and stockholders' equity	$32,700	$32,483

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, except Share data, unless otherwise specified
Consolidated Balance Sheets [Abstract]	'	'
Properties, accumulated depreciation	$10,512	$10,387
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	309,646,086	308,878,402

Consolidated_Statements_Of_Cas

Consolidated Statements Of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities	'	'
Net income	$368	$450
Reconciliation of net income to net cash provided by operating activities:	'	'
Depreciation	238	228
Deferred income taxes	-8	74
Gains and losses on properties and investments	-2	-99
Changes in assets and liabilities affecting operations:	'	'
Accounts receivable	-85	-49
Materials and supplies	-17	-30
Other current assets	17	17
Current liabilities other than debt	86	96
Other, net	-9	36
Net cash provided by operating activities	588	723
Cash flows from investing activities	'	'
Property additions	-381	-379
Property sales and other transactions	22	19
Investments, including short-term	-3	-5
Investment sales and other transactions	108	-1
Net cash used in investing activities	-254	-366
Cash flows from financing activities	'	'
Dividends	-167	-157
Common stock issued, net	62	55
Purchase and retirement of common stock	-50	-33
Debt repayments	-100	-203
Net cash used in financing activities	-255	-338
Net increase (decrease) in cash and cash equivalents	79	19
Cash and cash equivalents	'	'
At beginning of year	1,443	653
At end of period	1,522	672
Supplemental disclosure of cash flow information	'	'
Interest (net of amounts capitalized)	75	62
Income taxes (net of refunds)	$60	$23

StockBased_Compensation_Unaudi

Stock-Based Compensation (Unaudited)	3 Months Ended
	Mar. 31, 2014
Stock-Based Compensation [Abstract]	'
Stock-Based Compensation	'
	1.  Stock-Based Compensation
	During the first quarter of 2014, a committee of non-employee directors of our Board of Directors granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP) and granted stock options pursuant to the Thoroughbred Stock Option Plan (TSOP) as discussed below.  Stock-based compensation expense was $32 million and $37 million during the first quarters of 2014 and 2013, respectively. The total tax effects recognized in income in relation to stock-based compensation were net benefits of $10 million and $12 million for the first quarters of 2014 and 2013, respectively.
	Stock Options
	In the first quarter of 2014, 515,240 options were granted under LTIP and 181,070 options were granted under TSOP. In each case, the grant price was $94.17, which was the greater of the average fair market value of Norfolk Southern common stock (Common Stock) or the closing price of Common Stock on the effective date of the grant, and the options have a term of ten years. The options granted under LTIP and TSOP in 2014 may not be exercised prior to the fourth and third anniversaries of the date of grant, respectively. Holders of the 2014 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 award in 2014 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 the branches of the model that result in options expiring unexercised. The average risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. For options granted that include dividend equivalent payments, a dividend yield of zero was used. A dividend yield of 2.29% 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 2014 LTIP and TSOP grants are shown in the following table:
	Expected volatility range	23% - 27%
	Average expected volatility	25%
	Average risk-free interest rate	2.79%
	Average expected option term LTIP	8.9 years
	Per-share grant-date fair value LTIP	$29.87
	Average expected option term TSOP	8.8 years
	Per-share grant-date fair value TSOP	$24.38
	For the first quarter of 2014, options relating to 880,744 shares were exercised, yielding $40 million of cash proceeds and $11 million of tax benefit recognized as additional paid-in capital. For the first quarter of 2013, options relating to 1,024,614 shares were exercised, yielding $35 million of cash proceeds and $13 million of tax benefit recognized as additional paid-in capital.
	Restricted Stock Units
	During the first quarter of 2014, there were 113,505 RSUs granted with a grant-date fair value of $94.17 and a five-year restriction period. The RSUs granted in 2014 will be settled through the issuance of shares of Common Stock.
	During the first quarter of 2014, 318,150 of the RSUs granted in 2009 vested, with 187,449 shares of Common Stock issued net of withholding taxes.  For the first quarter of 2013, 298,400 of the RSUs granted in 2008 vested, with 178,250 shares of Common Stock issued net of withholding taxes.  The total related tax benefits recognized as additional paid-in capital were $6 million and $2 million for the first quarters of 2014 and 2013, respectively.
	Performance Share Units
	PSUs provide for awards based on achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are paid in the form of shares of Common Stock. During the first quarter of 2014, there were 399,530 PSUs granted.  PSUs will earn out based on the achievement of a return on average invested capital target (a performance condition) and a total shareholder return target (a market condition).  The grant-date fair values of the PSUs associated with the performance and market conditions were $94.17 and $50.31, respectively, with the market condition fair value measured on the date of grant using a Monte Carlo simulation model.
	During the first quarter of 2014, 374,099 of the PSUs granted in 2011 were earned, with 223,253 shares of Common Stock issued net of withholding taxes.  For the first quarter of 2013, 577,585 of the PSUs granted in 2010 were earned, with 348,189 shares of Common Stock issued net of withholding taxes. The total related tax benefits recognized as additional paid-in capital were $5 million for the first quarter of both 2014 and 2013.

Income_Taxes_Unaudited

Income Taxes (Unaudited)	3 Months Ended
	Mar. 31, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	2.  Income Taxes
	There have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2013.  IRS examinations have been completed for all years prior to 2011, and we are not currently under audit for subsequent years.

Earnings_Per_Share_Unaudited

Earnings Per Share (Unaudited)	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	3.  Earnings Per Share
		Basic				Diluted
		First Quarter
		2014		2013		2014		2013
		($ in millions except per share amounts,
		shares in millions)
	Net income	$	368	$	450	$	368	$	450
	Dividend equivalent payments		(2)		(2)		(1)		(1)
	Income available to common stockholders		366		448		367		449
	Weighted-average shares outstanding		309.5		314.5		309.5		314.5
	Dilutive effect of outstanding options
	and share-settled awards						3.1		3.6
	Adjusted weighted-average shares outstanding						312.6		318.1
	Earnings per share	$	1.18	$	1.43	$	1.17	$	1.41
	During the first quarters of 2014 and 2013, 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: 0.7 million for 2014 and 0.8 million for 2013.
	1

Stockholders_Equity_Unaudited

Stockholders' Equity (Unaudited)	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity [Abstract]	'
Stockholders' Equity	'
	4.  Stockholders' Equity
	Common Stock
	Common Stock is reported net of shares held by our consolidated subsidiaries (Treasury Shares). Treasury Shares at March 31, 2014, and December 31, 2013, amounted to 20,320,777 shares, with a cost of $19 million at both dates.
	Accumulated Other Comprehensive Loss
	“Accumulated other comprehensive loss” reported in the Consolidated Balance Sheets consisted of the following:
					Accumulated
		Pensions			Other		Accumulated
		and Other			Comprehensive		Other
		Postretirement			Loss of Equity		Comprehensive
		Benefits			Investees		Loss
		($ in millions)
	31-Dec-13	$	(310)		$	(71)	$	(381)
	Other comprehensive income (loss):
	Prior service benefit		367			-		367
	Amounts reclassified into net income		12	-1		-		12
	Net gain (loss)		(80)			3		(77)
	Tax expense		(114)			-		(114)
	Other comprehensive income		185			3		188
	31-Mar-14	$	(125)		$	(68)	$	(193)
					Accumulated
		Pensions			Other		Accumulated
		and Other			Comprehensive		Other
		Postretirement			Loss of Equity		Comprehensive
		Benefits			Investees		Loss
		($ in millions)
	31-Dec-12	$	(999)		$	(110)	$	(1,109)
	Other comprehensive income (loss):
	Amounts reclassified into net income		36	-1		-		36
	Net gain		-			1		1
	Tax expense		(14)			-		(14)
	Other comprehensive income		22			1		23
	31-Mar-13	$	(977)		$	(109)	$	(1,086)
	(1) These items are included in the computation of net periodic pension and postretirement benefit costs. See
	Note 7, “Pensions and Other Postretirement Benefits” for additional information.

Stock_Repurchase_Program_Unaud

Stock Repurchase Program (Unaudited)	3 Months Ended
	Mar. 31, 2014
Stock Repurchase Program [Abstract]	'
Stock Repurchase Program	'
	5.  Stock Repurchase Program
	We repurchased and retired 0.5 million shares of Common Stock in each of the first quarters of 2014 and 2013 at a cost of $50 million and $33 million, respectively. 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 137.3 million shares at a total cost of $8.2 billion.

Investment_In_Conrail_Unaudite

Investment In Conrail (Unaudited)	3 Months Ended
	Mar. 31, 2014
Investment In Conrail [Abstract]	'
Investment In Conrail	'
	6.  Investment in Conrail
	Through a limited liability company, we and CSX Corporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary is Consolidated Rail Corporation (CRC). We have a 58% economic and 50% voting interest in the jointly owned entity, and CSX has the remainder of the economic and voting interests. Our investment in Conrail was $1.1 billion at both March 31, 2014 and December 31, 2013.
	CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of Norfolk Southern Railway Company (NSR) and CSX Transportation, Inc. (CSXT). The costs of operating the Shared Assets Areas are borne by NSR and CSXT based on usage. In addition, NSR and CSXT pay CRC a fee for access to the Shared Assets Areas. “Purchased services and rents” and “Fuel” include expenses for the use of the Shared Assets Areas totaling $34 million for both the first quarter of 2014 and 2013.   Our equity in the earnings of Conrail, net of amortization, included in “Purchased services and rents” was $6 million the first quarter of 2014.  For the first quarter of 2013, this amounted to $9 million and was included in “Other income - net.”
	“Accounts payable” includes $193 million at March 31, 2014, and $187 million at December 31, 2013, due to Conrail for the operation of the Shared Assets Areas. In addition, “Other liabilities” includes $133 million at both March 31, 2014, and December 31, 2013, for long-term advances from Conrail, maturing 2035, that bear interest at an average rate of 4.4%.

Pensions_And_Other_Postretirem

Pensions And Other Postretirement Benefits (Unaudited)	3 Months Ended
	Mar. 31, 2014
Pensions And Other Postretirement Benefits [Abstract]	'
Pensions And Other Postretirement Benefits	'
	7.  Pensions and Other Postretirement Benefits
	We have both funded and unfunded defined benefit pension plans covering principally salaried employees. We also provide specific health care and life insurance benefits to eligible retired employees; these plans can be amended or terminated at our option.  Under our self-insured retiree health care plan, a defined percentage of health care expenses is covered for retired employees and their dependents, reduced by any deductibles, coinsurance, and, in some cases, coverage provided under other group insurance policies.
						Other Postretirement
		Pension Benefits				Benefits
		First Quarter
		2014		2013		2014		2013
		($ in millions)
	Service cost	$	9	$	10	$	2	$	4
	Interest cost		23		20		8		13
	Expected return on plan assets		(38)		(35)		(4)		(4)
	Amortization of net losses		14		22		-		14
	Amortization of prior service benefit		-		-		(2)		-
	Net cost	$	8	$	17	$	4	$	27
	In the first quarter of 2014, we amended our retiree medical plan for participants who are Medicare eligible resulting in a remeasurement of our plan assets and obligations.  Effective July 1, 2014, participants who are Medicare-eligible will not be covered under the self-insured retiree health care plan but instead will be provided with an employer-funded health reimbursement account which can be used for reimbursement of health insurance premiums or eligible out-of-pocket medical expenses.  As required, the discount rate assumption was revised as a result of the remeasurement to 3.90% from 4.65% at December 31, 2013, and there were no significant changes to the expected return on plan assets, asset mix, mortality rates, or health care trend rates.   The prior service benefit associated with the plan amendment was $367 million and the actuarial losses associated with the change in discount rate were $80 million, resulting in a decrease in the benefit obligation of $287 million.  The estimated prior service benefit for the other postretirement benefit plans that will be amortized from accumulated other comprehensive loss into net periodic cost during the remainder of the year is $18 million.
	For the remainder of 2014, we expect to contribute approximately $39 million to our other postretirement benefit plans for retiree health and life insurance benefits.  Benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:
		Other
		Postretirement
		Benefits
		($ in millions)
	Remainder of 2014	$	39
	2015		47
	2016		46
	2017		45
	2018		44
	Years 2019 - 2023		201

Fair_Value_Unaudited

Fair Value (Unaudited)	3 Months Ended
	Mar. 31, 2014
Fair Value [Abstract]	'
Fair Value	'
	8.  Fair Value
	Fair Value Measurements
	The Financial Accounting Standards Board (FASB) Accounting Standards Codifications (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 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 March 31, 2014 or December 31, 2013.
	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:
		31-Mar-14				31-Dec-13
		Carrying		Fair		Carrying		Fair
		Amount		Value		Amount		Value
		($ in millions)
	Long-term investments	$	149	$	180	$	148	$	177
	Long-term debt, including current maturities		(9,354)		(10,989)		(9,348)		(10,673)
	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 table sets forth the fair value of long-term investment and long-term debt balances disclosed above by valuation technique level, within the fair value hierarchy (there were no level 3 valued assets or liabilities).
		Level 1		Level 2		Total
		($ in millions)
	31-Mar-14
	Long-term investments	$	49	$	131	$	180
	Long-term debt, including current maturities		(10,763)		(226)		(10,989)
	31-Dec-13
	Long-term investments	$	47	$	130	$	177
	Long-term debt, including current maturities		(10,449)		(224)		(10,673)

Commitments_And_Contingencies_

Commitments And Contingencies (Unaudited)	3 Months Ended
	Mar. 31, 2014
Commitments And Contingencies [Abstract]	'
Commitments And Contingencies	'
	9.  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 are known.
	Two of our customers, DuPont and Sunbelt Alkai Partnership (Sunbelt), filed rate reasonableness complaints before the Surface Transportation Board (STB) alleging that our tariff rates for transportation of regulated movements are unreasonable.  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.  On March 14, 2014, the STB resolved DuPont's rate reasonableness complaint in our favor.  The STB's findings in the DuPont rate case remain subject to technical corrections, requests for reconsideration, and appeal.  We dispute the allegations of the Sunbelt complaint and presently expect resolution of that case to occur in 2014.  With respect to the Sunbelt case, we 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.  On June 21, 2012, the court certified the case as a class action.  The defendant railroads appealed this certification, and the Court of Appeals for the District of Columbia vacated the District Court's decision and remanded the case for further consideration.  We believe the allegations in the complaints are without merit and intend to vigorously defend the cases.  We do not believe the outcome of these proceedings will have a material effect on our financial position, results of operations, or liquidity.  A lawsuit containing similar allegations against us and four other major railroads that was filed on March 25, 2008, in the U.S. District Court for the District of Minnesota, was voluntarily dismissed by the plaintiff subject to a tolling agreement entered into in August 2008, and most recently extended in August 2013.
	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.
	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 $57 million at March 31, 2014, and $58 million at December 31, 2013 (of which $15 million is classified as a current liability at the end of each period). At March 31, 2014, the liability represents our estimate of the probable cleanup, investigation, and remediation costs based on available information at 145 known locations and projects compared with 142 locations and projects at December 31, 2013. At March 31, 2014, eleven 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 Environmental Protection Agency (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 we transport, 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 our financial position, results of operations, or liquidity in a particular year or quarter.
	Based on our assessment of the facts and circumstances now known, we believe we have recorded the probable and reasonably estimable costs for dealing with those environmental matters of which we are aware.  Further, we believe that it is unlikely that any known matters, either individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, or liquidity.
	Insurance
	We obtain on behalf of ourself and our subsidiaries insurance for potential losses for third-party liability and first-party property damages.  We are currently self-insured up to $50 million and above $1.0 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 March 31, 2014, we had outstanding purchase commitments totaling approximately $656 million for freight cars and containers, locomotives, track material, vehicle fleet additions, and track and yard expansion projects in connection with our capital programs through 2018 as well as long-term service contracts through 2018.
	17

StockBased_Compensation_Unaudi1

Stock-Based Compensation (Unaudited) (Tables)	3 Months Ended
	Mar. 31, 2014
Stock-Based Compensation [Abstract]	'
Schedule Of Assumptions Used For LTIP And TSOP Grants	'
	Expected volatility range	23% - 27%
	Average expected volatility	25%
	Average risk-free interest rate	2.79%
	Average expected option term LTIP	8.9 years
	Per-share grant-date fair value LTIP	$29.87
	Average expected option term TSOP	8.8 years
	Per-share grant-date fair value TSOP	$24.38

Earnings_Per_Share_Unaudited_T

Earnings Per Share (Unaudited) (Tables)	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Schedule Of Earnings Per Share Calculation	'
		Basic				Diluted
		First Quarter
		2014		2013		2014		2013
		($ in millions except per share amounts,
		shares in millions)
	Net income	$	368	$	450	$	368	$	450
	Dividend equivalent payments		(2)		(2)		(1)		(1)
	Income available to common stockholders		366		448		367		449
	Weighted-average shares outstanding		309.5		314.5		309.5		314.5
	Dilutive effect of outstanding options
	and share-settled awards						3.1		3.6
	Adjusted weighted-average shares outstanding						312.6		318.1
	Earnings per share	$	1.18	$	1.43	$	1.17	$	1.41

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity [Abstract]	'
Accumulated Other Comprehensive Loss	'
					Accumulated
		Pensions			Other		Accumulated
		and Other			Comprehensive		Other
		Postretirement			Loss of Equity		Comprehensive
		Benefits			Investees		Loss
		($ in millions)
	31-Dec-13	$	(310)		$	(71)	$	(381)
	Other comprehensive income (loss):
	Prior service benefit		367			-		367
	Amounts reclassified into net income		12	-1		-		12
	Net gain (loss)		(80)			3		(77)
	Tax expense		(114)			-		(114)
	Other comprehensive income		185			3		188
	31-Mar-14	$	(125)		$	(68)	$	(193)
					Accumulated
		Pensions			Other		Accumulated
		and Other			Comprehensive		Other
		Postretirement			Loss of Equity		Comprehensive
		Benefits			Investees		Loss
		($ in millions)
	31-Dec-12	$	(999)		$	(110)	$	(1,109)
	Other comprehensive income (loss):
	Amounts reclassified into net income		36	-1		-		36
	Net gain		-			1		1
	Tax expense		(14)			-		(14)
	Other comprehensive income		22			1		23
	31-Mar-13	$	(977)		$	(109)	$	(1,086)

Pensions_And_Other_Postretirem1

Pensions And Other Postretirement Benefits (Unaudited) (Tables)	3 Months Ended
	Mar. 31, 2014
Pensions And Other Postretirement Benefits [Abstract]	'
Pension And Other Postretirement Benefit Cost Components	'
						Other Postretirement
		Pension Benefits				Benefits
		First Quarter
		2014		2013		2014		2013
		($ in millions)
	Service cost	$	9	$	10	$	2	$	4
	Interest cost		23		20		8		13
	Expected return on plan assets		(38)		(35)		(4)		(4)
	Amortization of net losses		14		22		-		14
	Amortization of prior service benefit		-		-		(2)		-
	Net cost	$	8	$	17	$	4	$	27
Estimated Future Benefit Payments	'
		Other
		Postretirement
		Benefits
		($ in millions)
	Remainder of 2014	$	39
	2015		47
	2016		46
	2017		45
	2018		44
	Years 2019 - 2023		201

Fair_Value_Unaudited_Tables

Fair Value (Unaudited) (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value [Abstract]	'
Schedule Of Carrying Amounts And Estimated Fair Values	'
		31-Mar-14				31-Dec-13
		Carrying		Fair		Carrying		Fair
		Amount		Value		Amount		Value
		($ in millions)
	Long-term investments	$	149	$	180	$	148	$	177
	Long-term debt, including current maturities		(9,354)		(10,989)		(9,348)		(10,673)
Schedule Of Fair Value Of Long-term Assets And Liabilities	'
		Level 1		Level 2		Total
		($ in millions)
	31-Mar-14
	Long-term investments	$	49	$	131	$	180
	Long-term debt, including current maturities		(10,763)		(226)		(10,989)
	31-Dec-13
	Long-term investments	$	47	$	130	$	177
	Long-term debt, including current maturities		(10,449)		(224)		(10,673)

StockBased_Compensation_Unaudi2

Stock-Based Compensation (Unaudited) (Narrative) (Details) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Stock-based compensation expense	$32	$37
Tax benefits associated with stock-based compensation costs	10	12
Grant price of options granted	$94.17	'
Stock option term, in years	23-Jan-24	'
LTIP dividend equivalent payment, in years	'four	'
Dividend yield for period dividend equivalents paid	0.00%	'
Dividend yield for period dividend equivalents not paid	2.29%	'
Stock options exercised	880,744	1,024,614
Proceeds from stock options exercised	40	35
Excess tax benefits recognized for share-based awards	11	13
LTIP [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Stock options granted	515,240	'
Award vesting period, grant anniversary	'4 years	'
TSOP [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Stock options granted	181,070	'
Award vesting period, grant anniversary	'3 years	'
Restricted Stock Units (RSUs) [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Grants other than stock options	113,505	'
Restriction period, in years	'five	'
Restricted stock units vested	318,150	298,400
Restricted Stock Units tax (expense) benefit	6	2
Shares issued net of withholding taxes	187,449	178,250
PSU [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Performance Share Units Cycle, in years	'three	'
Grants other than stock options	399,530	'
Performance share units earned	374,099	577,585
Performance Share Units tax benefit (expense)	$5	$5
Shares issued net of withholding taxes	223,253	348,189
PSU [Member] | Performance Condition [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Grant-date fair value of units granted	$94.17	'
PSU [Member] | Market Condition [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Grant-date fair value of units granted	$50.31	'

StockBased_Compensation_Unaudi3

Stock-Based Compensation (Unaudited) (Schedule Of Assumptions Used For LTIP And TSOP Grants) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Expected volatility rate, minimum	23.00%
Expected volatility rate, maximum	27.00%
Average expected volatility rate	25.00%
Average risk-free interest rate	2.79%
Ltip [Member]	'
Average expected option term, in years	'8 years 10 months 24 days
Option per share grant-date fair value	29.87
TSOP [Member]	'
Average expected option term, in years	'8 years 9 months 18 days
Option per share grant-date fair value	24.38

Earnings_Per_Share_Unaudited_D

Earnings Per Share (Unaudited) (Details) (USD $)	3 Months Ended
In Millions, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Basic earnings per share	$1.18	$1.43
Diluted earnings per share	$1.17	$1.41
Options having exercise prices exceeding average market price	0.7	0.8
Net income	$368	$450
Earnings Per Share Basic [Member]	'	'
Dividend equivalent payments	-2	-2
Income available to common stockholders, basic	366	448
Weighted-average shares outstanding	309.5	314.5
Basic earnings per share	$1.18	$1.43
Net income	368	450
Earnings Per Share Diluted [Member]	'	'
Dividend equivalent payments	-1	-1
Income available to common stockholders, diluted	367	449
Weighted-average shares outstanding	309.5	314.5
Dilutive effect of outstanding options and share-settled awards	3.1	3.6
Adjusted weighted-average shares outstanding	312.6	318.1
Diluted earnings per share	$1.17	$1.41
Net income	$368	$450

Stockholders_Equity_Unaudited_

Stockholders' Equity (Unaudited) (Details) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Shares held by consolidated subsidiaries	20,320,777	'	20,320,777
Value of shares held by consolidated subsidiaries	$19	'	$19
Accumulated other comprehensive loss - beginning balance	-381	-1,109	'
Prior service benefit	367	'	'
Amounts reclassified into net income	12	36	'
Net gain	-77	1	'
Income tax expense related to items of other comprehensive income	-114	-14	'
Other comprehensive income, net of tax	188	23	'
Accumulated other comprehensive loss - ending balance	-193	-1,086	'
Pensions And Other Postretirement Liabilities [Member]	'	'	'
Accumulated other comprehensive loss - beginning balance	-310	-999	'
Prior service benefit	367	'	'
Amounts reclassified into net income	12	36	'
Net gain	-80	0	'
Income tax expense related to items of other comprehensive income	-114	-14	'
Other comprehensive income, net of tax	185	22	'
Accumulated other comprehensive loss - ending balance	-125	-977	'
Accumulated Other Comprehensive Loss Equity Investees [Member]	'	'	'
Accumulated other comprehensive loss - beginning balance	-71	-110	'
Prior service benefit	0	'	'
Amounts reclassified into net income	0	0	'
Net gain	3	1	'
Income tax expense related to items of other comprehensive income	0	0	'
Other comprehensive income, net of tax	3	1	'
Accumulated other comprehensive loss - ending balance	($68)	($109)	'

Stock_Repurchase_Program_Unaud1

Stock Repurchase Program (Unaudited) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Stock Repurchase Program [Abstract]	'	'
Stock repurchased and retired during period, shares	0.5	0.5
Stock repurchased and retired during period, cost	$50	$33
Stock repurchased and retired since beginning of stock repurchase program in 2006, shares	137.3	'
Stock repurchased and retired since beginning of stock repurchase program in 2006, cost	$8,200	'

Investment_In_Conrail_Unaudite1

Investment In Conrail (Unaudited) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Schedule of Investments [Line Items]	'	'	'
Equity method investments	$1,100	'	$1,100
Equity in the earnings of Conrail	6	9	'
Expenses for the use of the Shared Assets Area	34	34	'
Due to affiliate, current	193	'	187
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 Equity [Member]	'	'	'
Schedule of Investments [Line Items]	'	'	'
Equity method investment, ownership percentage	58.00%	'	58.00%
Conrail Voting [Member]	'	'	'
Schedule of Investments [Line Items]	'	'	'
Equity method investment, ownership percentage	50.00%	'	50.00%

Pensions_And_Other_Postretirem2

Pensions And Other Postretirement Benefits (Unaudited) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]	'	'	'
Actuarial losses associated with change in discount rate	$77	($1)	'
Decrease in Benefit Obligations	287	'	'
Defined Benefit Plan Amount To Be Amortized From Accumulated Other Comprehensive Income Current Year	18	'	'
Pension Plans, Defined Benefit [Member]	'	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'	'
Service cost	9	10	'
Interest cost	23	20	'
Expected return on plan assets	-38	-35	'
Amortization of net losses	14	22	'
Amortization of prior service benefit	0	0	'
Net cost	8	17	'
Other Postretirement Benefit Plans, Defined Benefit [Member]	'	'	'
Defined Benefit Plan Disclosure [Line Items]	'	'	'
Service cost	2	4	'
Interest cost	8	13	'
Expected return on plan assets	-4	-4	'
Amortization of net losses	0	14	'
Amortization of prior service benefit	-2	0	'
Net cost	4	27	'
Discount Rate Assumption	3.90%	'	4.65%
Remainder of 2014	39	'	'
2015	47	'	'
2016	46	'	'
2017	45	'	'
2018	44	'	'
Years 2019-2023	$201	'	'

Fair_Value_Unaudited_Narrative

Fair Value (Unaudited) (Narrative) (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Fair Value [Abstract]	'	'
Assets or liabilities measured at fair value	$0	$0

Fair_Value_Unaudited_Schedule_

Fair Value (Unaudited) (Schedule Of Carrying Amounts And Estimated Fair Values) (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Fair Value [Abstract]	'	'
Long-term investments, carrying value	$149	$148
Long-term investments, fair value	180	177
Long-term debt, including current maturities, carrying value	-9,354	-9,348
Long-term debt, including current maturities, fair value	($10,989)	($10,673)

Fair_Value_Unaudited_Schedule_1

Fair Value (Unaudited) (Schedule Of Fair Value Of Long-term Assets And Liabilities) (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Millions, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Long-term investments	$180	$177
Long-term debt, including current maturities	-10,989	-10,673
Level 1 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Long-term investments	49	47
Long-term debt, including current maturities	-10,763	-10,449
Level 2 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Long-term investments	131	130
Long-term debt, including current maturities	($226)	($224)

Commitments_And_Contingencies_1

Commitments And Contingencies (Unaudited) (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Commitments And Contingencies [Abstract]	'	'
Environmental liability	$57	$58
Current environmental liability	15	15
Known cleanup and remediation locations and projects	145	142
Number of sites - representative sample	11	'
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	1,000	'
Self-insured NS owned property - up to	25	'
Self-insured NS owned property - and above, per occurrence	175	'
Purchase commitments, long-term service contracts	$656	'