Norfolk Southern (NSC) 10-Q 23 Oct 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page	9 Months Ended
	Sep. 30, 2019shares
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	1-8339
Entity Registrant Name	NORFOLK SOUTHERN CORPORATION
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	52-1188014
Entity Address, Address Line One	Three Commercial Place
Entity Address, City or Town	Norfolk,
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23510-2191
City Area Code	(757)
Local Phone Number	629-2680
Title of 12(b) Security	Norfolk Southern Corporation Common Stock (Par Value $1.00)
Trading Symbol	NSC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	260,746,663
Entity Central Index Key	0000702165
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Railway operating revenues	$ 2,841	$ 2,947	$ 8,606	$ 8,562
Railway operating expenses:
Compensation and benefits	682	725	2,121	2,168
Purchased services and rents	423	450	1,265	1,281
Fuel	226	274	730	812
Depreciation	286	276	853	821
Materials and other	228	202	610	599
Total railway operating expenses	1,845	1,927	5,579	5,681
Income from railway operations	996	1,020	3,027	2,881
Other income – net	22	30	88	67
Interest expense on debt	150	142	452	409
Income before income taxes	868	908	2,663	2,539
Income taxes	211	206	607	575
Net income	$ 657	$ 702	$ 2,056	$ 1,964
Earnings per share:
Basic (in dollars per share)	$ 2.50	$ 2.54	$ 7.76	$ 7
Diluted (in dollars per share)	$ 2.49	$ 2.52	$ 7.70	$ 6.95

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income	$ 657	$ 702	$ 2,056	$ 1,964
Other comprehensive income, before tax:
Pension and other postretirement benefits	5	8	15	9
Other comprehensive income (loss) before tax	5	8	14	11
Income tax expense related to items of other comprehensive income	(1)	(2)	(4)	(2)
Other comprehensive income, net of tax	4	6	10	9
Total comprehensive income	661	708	2,066	1,973
Accumulated Other Comprehensive Loss Equity Investees
Other comprehensive income, before tax:
Other comprehensive income (loss) before tax	$ 0	$ 0	$ (1)	$ 2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 452	$ 358
Accounts receivable – net	973	1,009
Materials and supplies	266	207
Other current assets	325	288
Total current assets	2,016	1,862
Investments	3,376	3,109
Properties less accumulated depreciation of $12,381 and $12,374, respectively	31,394	31,091
Other assets	714	177
Total assets	37,500	36,239
Current liabilities:
Accounts payable	1,407	1,505
Short-term debt	350	0
Income and other taxes	202	255
Other current liabilities	401	246
Current maturities of long-term debt	401	585
Total current liabilities	2,761	2,591
Long-term debt	11,085	10,560
Other liabilities	1,727	1,266
Deferred income taxes	6,689	6,460
Total liabilities	22,262	20,877
Stockholders’ equity:
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 260,746,663 and 268,098,472 shares, respectively, net of treasury shares	262	269
Additional paid-in capital	2,219	2,216
Accumulated other comprehensive loss	(553)	(563)
Retained income	13,310	13,440
Total stockholders’ equity	15,238	15,362
Total liabilities and stockholders’ equity	$ 37,500	$ 36,239

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Properties, accumulated depreciation	$ 12,381	$ 12,374
Common stock, par or stated value per share (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,350,000,000	1,350,000,000
Common stock, shares outstanding, net of treasury shares (in shares)	260,746,663	268,098,472

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 2,056	$ 1,964
Reconciliation of net income to net cash provided by operating activities:
Depreciation	854	822
Deferred income taxes	225	138
Gains and losses on properties	(4)	(26)
Changes in assets and liabilities affecting operations:
Accounts receivable	34	(102)
Materials and supplies	(59)	(45)
Other current assets	40	45
Current liabilities other than debt	(72)	173
Other – net	(77)	(85)
Net cash provided by operating activities	2,997	2,884
Cash flows from investing activities:
Property additions	(1,494)	(1,326)
Property sales and other transactions	282	93
Investment purchases	(12)	(4)
Investment sales and other transactions	(99)	96
Net cash used in investing activities	(1,323)	(1,141)
Cash flows from financing activities:
Dividends	(705)	(627)
Common stock transactions	21	38
Purchase and retirement of common stock	(1,550)	(2,300)
Proceeds from borrowings – net of issuance costs	1,404	2,023
Debt repayments	(750)	(750)
Net cash used in financing activities	(1,580)	(1,616)
Net increase (decrease) in cash, cash equivalents, and restricted cash	94	127
Cash, cash equivalents, and restricted cash:
At beginning of year	446	690
At end of period	540	817
Supplemental disclosures of cash flow information:
Interest (net of amounts capitalized)	392	327
Income taxes (net of refunds)	$ 404	$ 314

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Income
Beginning Balance at Dec. 31, 2017	$ 16,359	$ 285	$ 2,254	$ (356)	$ 14,176
Comprehensive income:
Net income	552				552
Other comprehensive income (loss)	(4)			(4)
Total comprehensive income	548
Dividends on common stock	(205)				(205)
Share repurchases	(300)	(2)	(16)		(282)
Stock-based compensation	16	1	17		(2)
Reclassification of stranded tax effects				(88)	88
Ending Balance at Mar. 31, 2018	16,418	284	2,255	(448)	14,327
Beginning Balance at Dec. 31, 2017	16,359	285	2,254	(356)	14,176
Comprehensive income:
Net income	1,964
Other comprehensive income (loss)	9
Total comprehensive income	1,973
Share repurchases	(2,100)
Reclassification of stranded tax effects	(88)
Ending Balance at Sep. 30, 2018	15,480	274	1,996	(435)	13,645
Beginning Balance at Mar. 31, 2018	16,418	284	2,255	(448)	14,327
Comprehensive income:
Net income	710				710
Other comprehensive income (loss)	7			7
Total comprehensive income	717
Dividends on common stock	(203)				(203)
Share repurchases	(400)	(3)	(20)		(377)
Stock-based compensation	27		28		(1)
Ending Balance at Jun. 30, 2018	16,559	281	2,263	(441)	14,456
Comprehensive income:
Net income	702				702
Other comprehensive income (loss)	6			6
Total comprehensive income	708
Dividends on common stock	(219)				(219)
Share repurchases	(1,600)	(8)	(300)		(1,292)
Stock-based compensation	32	1	33		(2)
Ending Balance at Sep. 30, 2018	15,480	274	1,996	(435)	13,645
Beginning Balance at Dec. 31, 2018	15,362	269	2,216	(563)	13,440
Comprehensive income:
Net income	677				677
Other comprehensive income (loss)	3			3
Total comprehensive income	680
Dividends on common stock	(230)				(230)
Share repurchases	(500)	(3)	(22)		(475)
Stock-based compensation	19	1	19		(1)
Ending Balance at Mar. 31, 2019	15,331	267	2,213	(560)	13,411
Beginning Balance at Dec. 31, 2018	15,362	269	2,216	(563)	13,440
Comprehensive income:
Net income	2,056
Other comprehensive income (loss)	10
Total comprehensive income	2,066
Share repurchases	(1,600)
Reclassification of stranded tax effects	0
Ending Balance at Sep. 30, 2019	15,238	262	2,219	(553)	13,310
Beginning Balance at Mar. 31, 2019	15,331	267	2,213	(560)	13,411
Comprehensive income:
Net income	722				722
Other comprehensive income (loss)	3			3
Total comprehensive income	725
Dividends on common stock	(228)				(228)
Share repurchases	(550)	(2)	(22)		(526)
Stock-based compensation	33		35		(2)
Ending Balance at Jun. 30, 2019	15,311	265	2,226	(557)	13,377
Comprehensive income:
Net income	657				657
Other comprehensive income (loss)	4			4
Total comprehensive income	661
Dividends on common stock	(247)				(247)
Share repurchases	(500)	(3)	(21)		(476)
Stock-based compensation	13		14		(1)
Ending Balance at Sep. 30, 2019	$ 15,238	$ 262	$ 2,219	$ (553)	$ 13,310

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Common stock, dividends, per share, declared (in dollars per share)	$ 0.94	$ 0.86	$ 0.86	$ 0.80	$ 0.72	$ 0.72

Railway Operating Revenues

Railway Operating Revenues	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Railway Operating Revenues	Railway Operating Revenues The following table disaggregates our revenues by major commodity group: Third Quarter First Nine Months 2019 2018 2019 2018 Merchandise: ($ in millions) Chemicals $ 481 $ 481 $ 1,406 $ 1,400 Agriculture products 394 388 1,185 1,124 Metals and construction 391 401 1,192 1,170 Automotive 247 245 749 741 Forest and consumer 218 222 641 625 Merchandise 1,731 1,737 5,173 5,060 Intermodal 707 746 2,127 2,138 Coal 403 464 1,306 1,364 Total $ 2,841 $ 2,947 $ 8,606 $ 8,562 At the beginning of 2019, we recategorized certain commodities within Merchandise major commodity groups to better align with how we internally manage these commodities. Prior period amounts have been reclassified to conform to the current presentation with no net impact to overall Merchandise revenue or total railway operating revenues. Specifically, certain commodities were shifted between Chemicals, Agriculture products, Metals and construction, and Forest and consumer. We recognize the amount of revenue we expect to be entitled to for the transfer of promised goods or services to customers. A performance obligation is created when a customer under a transportation contract or public tariff submits a bill of lading to NS for the transport of goods. These performance obligations are satisfied as the shipments move from origin to destination. As such, transportation revenue is recognized proportionally as a shipment moves, and related expenses are recognized as incurred. These performance obligations are generally short-term in nature with transit days averaging approximately one week or less for each commodity group. The customer has an unconditional obligation to pay for the service once the service has been completed. Estimated revenue associated with in-process shipments at period-end is recorded based on the estimated percentage of service completed to total transit days. We had no material remaining performance obligations as of September 30, 2019 or December 31, 2018 . Under the typical payment terms of our freight contracts, payment for services is due within fifteen days of billing the customer, thus there are no significant financing components. “Accounts receivable – net” on the Consolidated Balance Sheets includes both customer and non-customer receivables as follows: September 30, December 31, 2018 ($ in millions) Customer $ 720 $ 740 Non-customer 253 269 Accounts receivable – net $ 973 $ 1,009 Non-customer receivables include non-revenue-related amounts due from other railroads, governmental entities, and others. “Other assets” on the Consolidated Balance Sheets includes non-current customer receivables of $23 million and $55 million at September 30, 2019 and December 31, 2018 , respectively. During the third quarter of 2019 , we wrote off a $32 million non-current customer receivable resulting from a legal dispute and this expense is included in “Materials and other” on the Consolidated Statements of Income. We do not have any material contract assets or liabilities. Certain ancillary services may be provided to customers under their transportation contracts such as switching, demurrage and other incidental service revenues. These are distinct performance obligations that are recognized at a point in time when the services are performed or as contractual obligations are met. This revenue is included within each of the commodity groups and represents 5% of total “Railway operating revenues” on the Consolidated Statements of Income for the third quarter and first nine months of 2019 and 4% for the third quarter and first nine months of 2018 .

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Third Quarter First Nine Months 2019 2018 2019 2018 ($ in millions) Stock-based compensation expense $ 10 $ 12 $ 46 $ 41 Total tax benefit 3 9 34 29 During 2019 , a committee of nonemployee members of our Board of Directors (and the Chief Executive Officer under delegated authority by such committee) granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows: Third Quarter First Nine Months Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Stock options 1,190 $ 40.98 45,110 $ 45.80 RSUs 5,610 176.40 216,800 164.20 PSUs 2,090 168.73 98,860 160.42 Stock Options Third Quarter First Nine Months 2019 2018 2019 2018 ($ in millions) Stock options exercised 55,155 327,275 677,072 797,389 Cash received upon exercise $ 3 $ 23 $ 47 $ 56 Related tax benefit realized 1 7 16 14 Restricted Stock Units Beginning in 2018, RSUs granted primarily have a four -year ratable restriction period and will be settled through the issuance of shares of Norfolk Southern common stock (Common Stock). RSUs granted in previous years have a five-year restriction period and will also be settled through the issuance of shares of Common Stock. Certain RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to the regular quarterly dividends paid on Common Stock. Third Quarter First Nine Months 2019 2018 2019 2018 ($ in millions) RSUs vested 142 — 166,197 160,200 Common Stock issued net of tax withholding 102 — 119,346 99,968 Related tax benefit realized $ — $ — $ 2 $ 3 Performance Share Units PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model. No PSUs were earned or paid out during the third quarters of 2019 or 2018 . First Nine Months 2019 2018 ($ in millions) PSUs earned 331,099 154,189 Common Stock issued net of tax withholding 221,241 94,399 Related tax benefit realized $ 9 $ 3

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table sets forth the calculation of basic and diluted earnings per share: Basic Diluted Third Quarter 2019 2018 2019 2018 ($ in millions, except per share amounts, shares in millions) Net income $ 657 $ 702 $ 657 $ 702 Dividend equivalent payments (1 ) (2 ) — — Income available to common stockholders $ 656 $ 700 $ 657 $ 702 Weighted-average shares outstanding 262.1 275.5 262.1 275.5 Dilutive effect of outstanding options and share-settled awards 2.2 2.7 Adjusted weighted-average shares outstanding 264.3 278.2 Earnings per share $ 2.50 $ 2.54 $ 2.49 $ 2.52 Basic Diluted First Nine Months 2019 2018 2019 2018 ($ in millions, except per share amounts, Net income $ 2,056 $ 1,964 $ 2,056 $ 1,964 Dividend equivalent payments (4 ) (4 ) — (1 ) Income available to common stockholders $ 2,052 $ 1,960 $ 2,056 $ 1,963 Weighted-average shares outstanding 264.6 280.1 264.6 280.1 Dilutive effect of outstanding options and share-settled awards 2.3 2.5 Adjusted weighted-average shares outstanding 266.9 282.6 Earnings per share $ 7.76 $ 7.00 $ 7.70 $ 6.95 During the third quarter s and first nine months of 2019 and 2018 , dividend equivalent payments were made to certain 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 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. There are no awards outstanding that were antidilutive for both the third quarter s and first nine months ended September 30, 2019 and 2018

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The changes in the cumulative balances of “Accumulated other comprehensive loss” reported on the Consolidated Balance Sheets consisted of the following: Balance at Beginning of Year Net Income (Loss) Reclassification of Stranded Tax Effects Reclassification Adjustments Balance at End of Period ($ in millions) Nine Months Ended September 30, 2019 Pensions and other postretirement liabilities $ (497 ) $ — $ — $ 11 $ (486 ) Other comprehensive loss of equity investees (66 ) (1 ) — — (67 ) Accumulated other comprehensive loss $ (563 ) $ (1 ) $ — $ 11 $ (553 ) Nine Months Ended September 30, 2018 Pensions and other postretirement liabilities $ (300 ) $ (11 ) $ (86 ) $ 18 $ (379 ) Other comprehensive income (loss) of equity investees (56 ) 2 (2 ) — (56 ) Accumulated other comprehensive loss $ (356 ) $ (9 ) $ (88 ) $ 18 $ (435 ) In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” We adopted the provisions of ASU 2018-02 in the first quarter of 2018 resulting in an increase to “Accumulated other comprehensive loss” of $88 million and a corresponding increase to “Retained income,” with no impact on “Total stockholders’ equity.”

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Sep. 30, 2019
Stock Repurchase Program [Abstract]
Stock Repurchase Program	Stock Repurchase Program We repurchased and retired 8.4 million shares of Common Stock under our stock repurchase program during the first nine months of 2019 , at a cost of $1.6 billion . During the first nine months of 2018 , we repurchased and retired 12.8 million shares ( 5.7 million under an accelerated share repurchase program and 7.1 million shares under our ongoing program) at a cost of $2.1 billion . Since the beginning of 2006, we have repurchased and retired 194.0 million shares at a total cost of $15.7 billion .

Investments

Investments	9 Months Ended
	Sep. 30, 2019
Investments [Abstract]
Investments	Investments Investment in Conrail Through a limited liability company, we and CSX Corporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary is Consolidated Rail Corporation (CRC). We have a 58% economic and 50% voting interest in the jointly owned entity, and CSX has the remainder of the economic and voting interests. Our investment in Conrail was $1.4 billion at September 30, 2019 , and $1.3 billion at December 31, 2018 . CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of Norfolk Southern Railway Company (NSR) and CSX Transportation, Inc. (CSXT). The costs of operating the Shared Assets Areas are borne by NSR and CSXT based on usage. In addition, NSR and CSXT pay CRC a fee for access to the Shared Assets Areas. “Purchased services and rents” and “Fuel” include amounts payable to CRC for the operation of the Shared Assets Areas totaling $37 million and $38 million for the third quarter s of 2019 and 2018 , respectively, and $112 million for both the first nine months of 2019 and 2018. Our equity in the earnings of Conrail, net of amortization, included in “Purchased services and rents” was $13 million and $12 million for the third quarter s of 2019 and 2018 , respectively, and $36 million and $46 million for the first nine months of 2019 and 2018, respectively. “Other liabilities” includes $280 million at both September 30, 2019 , and December 31, 2018 , for long-term advances from Conrail, maturing 2044 , that bear interest at an average rate of 2.9% . Investment in TTX NS and eight other North American railroads jointly own TTX Company (TTX). NS has a 19.65% ownership interest in TTX, a railcar pooling company that provides its owner-railroads with standardized fleets of intermodal, automotive, and general use railcars at stated rates. Amounts paid to TTX for use of equipment are included in “Purchased services and rents” and amounted to $61 million and $64 million of expense for the third quarter s of 2019 and 2018 , respectively, and $183 million and $197 million for the first nine months of 2019 and 2018, respectively. Our equity in the earnings of TTX, also included in “Purchased services and rents,” totaled $19 million and $16 million for the third quarter s of 2019 and 2018 , respectively, and $44 million and $49 million for the first nine months of 2019 and 2018, respectively.

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt	Debt In May 2019, we issued $200 million of 3.80% senior notes due 2028 , $400 million of 4.10% senior notes due 2049 , and $200 million of 5.10% senior notes due 2118 . In May 2019, we renewed and amended our accounts receivable securitization program, increasing borrowing capacity from $400 million to $450 million with a term expiring in May 2020. We had $350 million outstanding at September 30, 2019 reflected as “Short-term debt” on the Consolidated Balance Sheets, and no amounts outstanding at December 31, 2018 . The “Cash, cash equivalents, and restricted cash” line item on the Consolidated Statements of Cash Flows includes restricted cash of $88 million at both September 30, 2019 and December 31, 2018 , reflecting deposits held by a third-party bond agent as collateral for certain debt obligations maturing in October 2019. The restricted cash balance is included as part of “Other current assets” on the Consolidated Balance Sheets in both periods.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” and subsequent amendments, which replaced existing lease guidance in GAAP and requires lessees to recognize right-of-use (ROU) assets and lease liabilities on the balance sheet for leases greater than twelve months and disclose key information about leasing arrangements. We adopted the standard on January 1, 2019 using the modified retrospective method and used the effective date as our date of initial application. Financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. Upon adoption of the standard, we recognized ROU assets and corresponding lease liabilities of $586 million on the Consolidated Balance Sheets as of January 1, 2019. There were no adjustments to “Retained income” on adoption. The new standard provides a number of optional practical expedients for transition. We elected the package of practical expedients under the transition guidance which permitted us not to reassess under the new standard our prior conclusions for lease identification and lease classification on expired or existing contracts and whether initial direct costs previously capitalized would qualify for capitalization under FASB Accounting Standards Codification (ASC) 842. We also elected the practical expedient related to land easements, which allowed us to not reassess our current accounting treatment for existing agreements on land easements, which are not accounted for as leases. We did not elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The new standard also provides practical expedients and recognition exemptions for an entity’s ongoing accounting policy elections. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we do not recognize ROU assets or lease liabilities. We are committed under long-term lease agreements for equipment, lines of road, and other property. Some of these agreements contain variable payment provisions that depend on an index or rate, initially measured using the index or rate at the lease commencement date, and are therefore not included in our future minimum lease payments. These variable lease agreements include usage-based payments for equipment under service contracts, lines of road, and other property. Our long-term lease agreements do not contain any material restrictive covenants. Our equipment leases have remaining terms of less than 1 year to 9 years and our lines of road and land leases have remaining terms of less than 1 year to 138 years . Some of these leases include options to extend the leases for up to 99 years , and some include options to terminate the leases within 30 days . Because we are not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and associated payments are excluded from future minimum lease payments. Leases with an initial term of twelve months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. We do not separate lease and non-lease components. Operating lease amounts included on the Consolidated Balance Sheet were as follows: September 30, 2019 Assets Classification ($ in millions) ROU assets Other assets $ 561 Liabilities Current lease liabilities Other current liabilities $ 97 Non-current lease liabilities Other liabilities 464 Total lease liabilities $ 561 The components of total lease expense, primarily included in “Purchased services and rents,” were as follows: Third Quarter First Nine Months 2019 2019 ($ in millions) Operating lease expense $ 29 $ 85 Variable lease expense 15 43 Short-term lease expense 1 4 Total lease expense $ 45 $ 132 At September 30, 2019 , we do not have any material finance lease assets or liabilities, nor do we have any material subleases. During March 2019, we entered into a non-cancellable lease for an office building with an estimated construction cost of $550 million. The lease will commence upon completion of the construction (for which we are a construction agent) of the office building which is expected to be in 2021. The initial term of the lease is five years , with options to renew, purchase, or sell the office building at the end of the lease term. Upon lease commencement, the ROU asset and lease liability will be determined and recorded. The lease also contains a residual value guarantee of up to ninety percent of the total construction cost. Other information related to operating leases was as follows: September 30, 2019 Weighted-average remaining lease term (years) on operating leases 8.32 Weighted-average discount rates on operating leases 3.52 % As the rates implicit in most of our leases are not readily determinable, we use a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. We use the portfolio approach and group leases into short, medium, and long-term categories, applying the corresponding incremental borrowing rates to these categories of leases. During the first nine months of 2019 , right-of-use assets obtained in exchange for new operating lease liabilities were $47 million. During the first nine months of 2019 , cash paid for amounts included in the measurement of lease liabilities was $85 million in operating cash flows from operating leases. During the first quarter, cash proceeds from a sale and leaseback transaction were $82 million and the gain on the transaction was $15 million. Future minimum lease payments under non-cancellable operating leases were as follows: September 30, 2019 ($ in millions) 2019 - 3 months $ 30 2020 110 2021 103 2022 79 2023 69 2024 and subsequent years 266 Total lease payments 657 Less: Interest 96 Present value of lease liabilities $ 561 Undiscounted future minimum lease payments under non-cancellable operating leases accounted for under ASC 840 “ Leases ” were as follows: December 31, 2018 ($ in millions) 2019 $ 101 2020 95 2021 88 2022 75 2023 69 2024 and subsequent years 267 Total $ 695

Pensions and Other Postretireme

Pensions and Other Postretirement Benefits	9 Months Ended
	Sep. 30, 2019
Defined Contribution Plan [Abstract]
Pensions and Other Postretirement Benefits	Pensions and Other Postretirement Benefits We have both funded and unfunded defined benefit pension plans covering principally salaried employees. We also provide specified health care and life insurance benefits to eligible retired employees; these plans can be amended or terminated at our option. Under our self-insured retiree health care plan, for those participants who are not Medicare-eligible, a defined percentage of health care expenses is covered for retired employees and their dependents, reduced by any deductibles, coinsurance, and, in some cases, coverage provided under other group insurance policies. Those participants who are Medicare-eligible are not covered under the self-insured retiree health care plan, but instead are provided with an employer-funded health reimbursement account which can be used for reimbursement of health insurance premiums or eligible out-of-pocket medical expenses. Pension and postretirement benefit cost components for the third quarter s and first nine months were as follows: Other Postretirement Pension Benefits Benefits Third Quarter 2019 2018 2019 2018 ($ in millions) Service cost $ 9 $ 9 $ 2 $ 2 Interest cost 24 21 4 4 Expected return on plan assets (45 ) (44 ) (4 ) (4 ) Amortization of net losses 11 14 — — Amortization of prior service benefit — — (6 ) (6 ) Net benefit $ (1 ) $ — $ (4 ) $ (4 ) Other Postretirement Pension Benefits Benefits First Nine Months 2019 2018 2019 2018 ($ in millions) Service cost $ 26 $ 29 $ 5 $ 6 Interest cost 70 63 13 12 Expected return on plan assets (134 ) (133 ) (11 ) (12 ) Amortization of net losses 33 42 — — Amortization of prior service benefit — — (18 ) (18 ) Net expense (benefit) $ (5 ) $ 1 $ (11 ) $ (12 ) The service cost component of defined benefit pension cost and postretirement benefit cost are reported within “Compensation and benefits” and all other components of net benefit cost are presented in “Other income – net” on the Consolidated Statements of Income.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Values of Financial Instruments The fair values of “Cash and cash equivalents,” “Accounts receivable – net,” “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. There are no other assets or liabilities measured at fair value on a recurring basis at September 30, 2019 or December 31, 2018 . The carrying amounts and estimated fair values, based on Level 1 inputs, of long-term debt consisted of the following: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value ($ in millions) Long-term debt, including current maturities $ (11,486 ) $ (14,131 ) $ (11,145 ) $ (12,203 )

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lawsuits We and/or certain subsidiaries are defendants in numerous lawsuits and other claims relating principally to railroad operations. When we conclude that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, it is accrued through a charge to earnings. While the ultimate amount of liability incurred in any of these lawsuits and claims is dependent on future developments, in our opinion, the recorded liability is adequate to cover the future payment of such liability and claims. However, the final outcome of any of these lawsuits and claims cannot be predicted with certainty, and unfavorable or unexpected outcomes could result in additional accruals that could be significant to results of operations in a particular year or quarter. Any adjustments to the recorded liability will be reflected in earnings in the periods in which such adjustments become known. In 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. In 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. On October 10, 2017, the District Court denied class certification. The decision was upheld by the Court of Appeals on August 16, 2019. Since that decision, various individual cases have been filed in multiple jurisdictions. We believe the allegations in the complaints are without merit and intend to vigorously defend the cases. We do not believe the outcome of these proceedings will have a material effect on our financial position, results of operations, or liquidity. Casualty Claims Casualty claims include employee personal injury and occupational claims as well as third-party claims, all exclusive of legal costs. To aid in valuing our personal injury liability and determining the amount to accrue with respect to such claims during the year, we utilize studies prepared by an independent consulting actuarial firm. Job-related personal injury and occupational claims are subject to the Federal Employer’s Liability Act (FELA) , which is applicable only to railroads. FELA’s fault-based tort system produces results that are unpredictable and inconsistent as compared with a no-fault workers’ compensation system. The variability inherent in this system could result in actual costs being different from the liability recorded. While the ultimate amount of claims incurred is dependent on future developments, in our opinion, the recorded liability is adequate to cover the future payments of claims and is supported by the most recent actuarial study. In all cases, we record a liability when the expected loss for the claim is both probable and reasonably estimable. Employee personal injury claims – The largest component of casualties and other claims expense is employee personal injury costs. The independent actuarial firm engaged by us provides quarterly studies to aid in valuing our employee personal injury liability and estimating personal injury expense. The actuarial firm studies our historical patterns of reserving for claims and subsequent settlements, taking into account relevant outside influences. The actuarial firm uses the results of these analyses to estimate the ultimate amount of liability. We adjust the liability quarterly based upon our assessment and the results of the study. Our estimate of the liability is subject to inherent limitation given the difficulty of predicting future events such as jury decisions, court interpretations, or legislative changes. As a result, actual claim settlements may vary from the estimated liability recorded. Occupational claims – Occupational claims include injuries and illnesses alleged to be caused by exposures which occur over time as opposed to injuries or illnesses caused by a specific accident or event. Types of occupational claims commonly seen allege exposure to asbestos and other claimed toxic substances resulting in respiratory diseases or cancer, exposure to repetitive motion resulting in various musculoskeletal disorders, and exposure to excessive noise resulting in hearing loss. Many such claims are being asserted by former or retired employees, some of whom have not been employed in the rail industry for decades. The independent actuarial firm provides an estimate of the occupational claims liability based upon our history of claim filings, severity, payments, and other pertinent facts. The liability is dependent upon judgments we make as to the specific case reserves as well as judgments of the actuarial firm in the quarterly studies. The actuarial firm’s estimate of ultimate loss includes a provision for those claims that have been incurred but not reported. This provision is derived by analyzing industry data and projecting our experience. We adjust the liability quarterly based upon our assessment and the results of the study. However, it is possible that the recorded liability may not be adequate to cover the future payment of claims. Adjustments to the recorded liability are reflected in operating expenses in the periods in which such adjustments become known. Third-party claims – We record a liability for third-party claims including those for highway crossing accidents, trespasser and other injuries, property damage, and lading damage. The actuarial firm assists us with the calculation of potential liability for third-party claims, except lading damage, based upon our experience including the number and timing of incidents, amount of payments, settlement rates, number of open claims, and legal defenses. We adjust the liability quarterly based upon our assessment and the results of the study. Given the inherent uncertainty in regard to the ultimate outcome of third-party claims, it is possible that the actual loss may differ from the estimated liability recorded. Environmental Matters We are subject to various jurisdictions’ environmental laws and regulations. We record a liability where such liability or loss is probable and reasonably estimable. Environmental specialists regularly participate in ongoing evaluations of all known sites and in determining any necessary adjustments to liability estimates. Our Consolidated Balance Sheets include liabilities for environmental exposures of $60 million and $55 million at September 30, 2019 and December 31, 2018 , respectively, of which $15 million is classified as a current liability at both dates. At September 30, 2019 , the liability represents our estimates of the probable cleanup, investigation, and remediation costs based on available information at 113 known locations and projects compared with 114 locations and projects at December 31, 2018 . At September 30, 2019 , sixteen sites accounted for $42 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 eleven locations, one or more of our subsidiaries in conjunction with a number of other parties have been identified as potentially responsible parties under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or comparable state statutes that impose joint and several liability for cleanup costs. We calculate our estimated liability for these sites based on facts and legal defenses applicable to each site and not solely on the basis of the potential for joint liability. With respect to known environmental sites (whether identified by us or by the Environmental Protection Agency or comparable state authorities), estimates of our ultimate potential financial exposure for a given site or in the aggregate for all such sites can change over time because of the widely varying costs of currently available cleanup techniques, unpredictable contaminant recovery and reduction rates associated with available cleanup technologies, the likely development of new cleanup technologies, the difficulty of determining in advance the nature and full extent of contamination and each potential participant’s share of any estimated loss (and that participant’s ability to bear it), and evolving statutory and regulatory standards governing liability. The risk of incurring environmental liability for acts and omissions, past, present, and future, is inherent in the railroad business. Some of the commodities we transport, particularly those classified as hazardous materials, pose special risks that we work diligently to reduce. In addition, several of our subsidiaries own, or have owned, land used as operating property, or which is leased and operated by others, or held for sale. Because environmental problems that are latent or undisclosed may exist on these properties, there can be no assurance that we will not incur environmental liabilities or costs with respect to one or more of them, the amount and materiality of which cannot be estimated reliably at this time. Moreover, lawsuits and claims involving these and potentially other unidentified environmental sites and matters are likely to arise from time to time. The resulting liabilities could have a significant effect on financial position, results of operations, or liquidity in a particular year or quarter. Based on our assessment of the facts and circumstances now known, we believe we have recorded the probable and reasonably estimable costs for dealing with those environmental matters of which we are aware. Further, we believe that it is unlikely that any known matters, either individually or in the aggregate, will have a material adverse effect on our financial position, results of operations, or liquidity. Insurance We obtain on behalf of ourself and our subsidiaries insurance for potential losses for third-party liability and first-party property damages. We are currently self-insured up to $50 million and above $1.1 billion ( $1.5 billion for specific perils) per occurrence and/or policy year for bodily injury and property damage to third parties and up to $25 million and above $200 million per occurrence and/or policy year for property owned by us or in our care, custody, or control.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Credit Losses - Measurement of Credit Losses on Financial Instruments,” which will replace the current incurred loss impairment method with a method that reflects expected credit losses. The new standard is effective as of January 1, 2020, and early adoption is permitted as of January 1, 2019. Because credit losses associated from our accounts receivables have historically been insignificant, we do not expect this standard to have a material effect on our financial statements. We will not adopt the standard early.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Credit Losses - Measurement of Credit Losses on Financial Instruments,” which will replace the current incurred loss impairment method with a method that reflects expected credit losses. The new standard is effective as of January 1, 2020, and early adoption is permitted as of January 1, 2019. Because credit losses associated from our accounts receivables have historically been insignificant, we do not expect this standard to have a material effect on our financial statements. We will not adopt the standard early.

Railway Operating Revenues (Tab

Railway Operating Revenues (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates our revenues by major commodity group: Third Quarter First Nine Months 2019 2018 2019 2018 Merchandise: ($ in millions) Chemicals $ 481 $ 481 $ 1,406 $ 1,400 Agriculture products 394 388 1,185 1,124 Metals and construction 391 401 1,192 1,170 Automotive 247 245 749 741 Forest and consumer 218 222 641 625 Merchandise 1,731 1,737 5,173 5,060 Intermodal 707 746 2,127 2,138 Coal 403 464 1,306 1,364 Total $ 2,841 $ 2,947 $ 8,606 $ 8,562
Schedule of Accounts Receivable	“Accounts receivable – net” on the Consolidated Balance Sheets includes both customer and non-customer receivables as follows: September 30, December 31, 2018 ($ in millions) Customer $ 720 $ 740 Non-customer 253 269 Accounts receivable – net $ 973 $ 1,009

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan	Third Quarter First Nine Months 2019 2018 2019 2018 ($ in millions) Stock-based compensation expense $ 10 $ 12 $ 46 $ 41 Total tax benefit 3 9 34 29
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	During 2019 , a committee of nonemployee members of our Board of Directors (and the Chief Executive Officer under delegated authority by such committee) granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows: Third Quarter First Nine Months Granted Weighted-Average Grant-Date Fair Value Granted Weighted-Average Grant-Date Fair Value Stock options 1,190 $ 40.98 45,110 $ 45.80 RSUs 5,610 176.40 216,800 164.20 PSUs 2,090 168.73 98,860 160.42
Schedule of Cash Proceeds Received from Share-based Payment Awards	Third Quarter First Nine Months 2019 2018 2019 2018 ($ in millions) Stock options exercised 55,155 327,275 677,072 797,389 Cash received upon exercise $ 3 $ 23 $ 47 $ 56 Related tax benefit realized 1 7 16 14
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Share-based Compensation, Activity	Third Quarter First Nine Months 2019 2018 2019 2018 ($ in millions) RSUs vested 142 — 166,197 160,200 Common Stock issued net of tax withholding 102 — 119,346 99,968 Related tax benefit realized $ — $ — $ 2 $ 3
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Share-based Compensation, Activity	First Nine Months 2019 2018 ($ in millions) PSUs earned 331,099 154,189 Common Stock issued net of tax withholding 221,241 94,399 Related tax benefit realized $ 9 $ 3

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the calculation of basic and diluted earnings per share: Basic Diluted Third Quarter 2019 2018 2019 2018 ($ in millions, except per share amounts, shares in millions) Net income $ 657 $ 702 $ 657 $ 702 Dividend equivalent payments (1 ) (2 ) — — Income available to common stockholders $ 656 $ 700 $ 657 $ 702 Weighted-average shares outstanding 262.1 275.5 262.1 275.5 Dilutive effect of outstanding options and share-settled awards 2.2 2.7 Adjusted weighted-average shares outstanding 264.3 278.2 Earnings per share $ 2.50 $ 2.54 $ 2.49 $ 2.52 Basic Diluted First Nine Months 2019 2018 2019 2018 ($ in millions, except per share amounts, Net income $ 2,056 $ 1,964 $ 2,056 $ 1,964 Dividend equivalent payments (4 ) (4 ) — (1 ) Income available to common stockholders $ 2,052 $ 1,960 $ 2,056 $ 1,963 Weighted-average shares outstanding 264.6 280.1 264.6 280.1 Dilutive effect of outstanding options and share-settled awards 2.3 2.5 Adjusted weighted-average shares outstanding 266.9 282.6 Earnings per share $ 7.76 $ 7.00 $ 7.70 $ 6.95

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Accumulated Other Comprehensive Loss	The changes in the cumulative balances of “Accumulated other comprehensive loss” reported on the Consolidated Balance Sheets consisted of the following: Balance at Beginning of Year Net Income (Loss) Reclassification of Stranded Tax Effects Reclassification Adjustments Balance at End of Period ($ in millions) Nine Months Ended September 30, 2019 Pensions and other postretirement liabilities $ (497 ) $ — $ — $ 11 $ (486 ) Other comprehensive loss of equity investees (66 ) (1 ) — — (67 ) Accumulated other comprehensive loss $ (563 ) $ (1 ) $ — $ 11 $ (553 ) Nine Months Ended September 30, 2018 Pensions and other postretirement liabilities $ (300 ) $ (11 ) $ (86 ) $ 18 $ (379 ) Other comprehensive income (loss) of equity investees (56 ) 2 (2 ) — (56 ) Accumulated other comprehensive loss $ (356 ) $ (9 ) $ (88 ) $ 18 $ (435 )

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Lease Related Assets and Liabilities	Operating lease amounts included on the Consolidated Balance Sheet were as follows: September 30, 2019 Assets Classification ($ in millions) ROU assets Other assets $ 561 Liabilities Current lease liabilities Other current liabilities $ 97 Non-current lease liabilities Other liabilities 464 Total lease liabilities $ 561
Lease, Cost	The components of total lease expense, primarily included in “Purchased services and rents,” were as follows: Third Quarter First Nine Months 2019 2019 ($ in millions) Operating lease expense $ 29 $ 85 Variable lease expense 15 43 Short-term lease expense 1 4 Total lease expense $ 45 $ 132 Other information related to operating leases was as follows: September 30, 2019 Weighted-average remaining lease term (years) on operating leases 8.32 Weighted-average discount rates on operating leases 3.52 %
Lessee, Operating Lease, Liability, Maturity	Future minimum lease payments under non-cancellable operating leases were as follows: September 30, 2019 ($ in millions) 2019 - 3 months $ 30 2020 110 2021 103 2022 79 2023 69 2024 and subsequent years 266 Total lease payments 657 Less: Interest 96 Present value of lease liabilities $ 561
Schedule of Future Minimum Rental Payments for Operating Leases	Undiscounted future minimum lease payments under non-cancellable operating leases accounted for under ASC 840 “ Leases ” were as follows: December 31, 2018 ($ in millions) 2019 $ 101 2020 95 2021 88 2022 75 2023 69 2024 and subsequent years 267 Total $ 695

Pensions and Other Postretire_2

Pensions and Other Postretirement Benefits (Tables)	9 Months Ended
	Sep. 30, 2019
Defined Contribution Plan [Abstract]
Pension and Other Postretirement Benefit Cost Components	Pension and postretirement benefit cost components for the third quarter s and first nine months were as follows: Other Postretirement Pension Benefits Benefits Third Quarter 2019 2018 2019 2018 ($ in millions) Service cost $ 9 $ 9 $ 2 $ 2 Interest cost 24 21 4 4 Expected return on plan assets (45 ) (44 ) (4 ) (4 ) Amortization of net losses 11 14 — — Amortization of prior service benefit — — (6 ) (6 ) Net benefit $ (1 ) $ — $ (4 ) $ (4 ) Other Postretirement Pension Benefits Benefits First Nine Months 2019 2018 2019 2018 ($ in millions) Service cost $ 26 $ 29 $ 5 $ 6 Interest cost 70 63 13 12 Expected return on plan assets (134 ) (133 ) (11 ) (12 ) Amortization of net losses 33 42 — — Amortization of prior service benefit — — (18 ) (18 ) Net expense (benefit) $ (5 ) $ 1 $ (11 ) $ (12 )

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Carrying Amounts and Estimated Fair Values	The carrying amounts and estimated fair values, based on Level 1 inputs, of long-term debt consisted of the following: September 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value ($ in millions) Long-term debt, including current maturities $ (11,486 ) $ (14,131 ) $ (11,145 ) $ (12,203 )

Railway Operating Revenues (Det

Railway Operating Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 2,841	$ 2,947	$ 8,606	$ 8,562
Revenue, payment terms			15 days
Accessorial Services
Disaggregation of Revenue [Line Items]
Accessorial services percent of total railway operating revenues	5.00%	4.00%	5.00%	4.00%
Merchandise
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 1,731	$ 1,737	$ 5,173	$ 5,060
Merchandise | Chemicals
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	481	481	1,406	1,400
Merchandise | Agriculture products
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	394	388	1,185	1,124
Merchandise | Metals and construction
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	391	401	1,192	1,170
Merchandise | Automotive
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	247	245	749	741
Merchandise | Forest and consumer
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	218	222	641	625
Intermodal
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	707	746	2,127	2,138
Coal
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 403	$ 464	$ 1,306	$ 1,364

Railway Operating Revenues - Sc

Railway Operating Revenues - Schedule of Account Receivables (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable – net	$ 973	$ 1,009
Bad debt expense	32
Trade Accounts Receivable
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable – net	720	740
Other Receivables
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable – net	253	269
Other Noncurrent Receivables
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net, noncurrent	$ 23	$ 55

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense and Related Tax Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 10	$ 12	$ 46	$ 41
Total tax benefit	$ 3	$ 9	$ 34	$ 29

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Grants and Weighted-Average Grant-Date Fair Values (Details) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Stock options
Granted
Stock options (in shares)	1,190	45,110
Weighted-Average Grant-Date Fair Value
Stock options (in dollars per shares)	$ 40.98	$ 45.80
RSUs
Granted
Other than stock options (in shares)	5,610	216,800
Weighted-Average Grant-Date Fair Value
Other than stock options (in dollars per share)	$ 176.40	$ 164.20
PSUs
Granted
Other than stock options (in shares)	2,090	98,860
Weighted-Average Grant-Date Fair Value
Other than stock options (in dollars per share)	$ 168.73	$ 160.42

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details)	9 Months Ended	12 Months Ended	21 Months Ended
	Sep. 30, 2019	Dec. 31, 2017	Sep. 30, 2019
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)		5 years	4 years
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU Cycle	3 years

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Options Exercised, Cash Received, and Related Tax Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement [Abstract]
Stock options exercised (in shares)	55,155	327,275	677,072	797,389
Cash received upon exercise	$ 3	$ 23	$ 47	$ 56
Related tax benefit realized	$ 1	$ 7	$ 16	$ 14

Stock-Based Compensation - Sc_4

Stock-Based Compensation - Schedule of RSU Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Related tax benefit realized	$ 1	$ 7	$ 16	$ 14
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units earned (in shares)	142	0	166,197	160,200
Shares issued net of withholding taxes (in shares)	102	0	119,346	99,968
Related tax benefit realized	$ 0	$ 0	$ 2	$ 3

Stock-Based Compensation - Sc_5

Stock-Based Compensation - Schedule of PSU Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Related tax benefit realized	$ 1	$ 7	$ 16	$ 14
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units earned (in shares)	0	0	331,099	154,189
Shares issued net of withholding taxes (in shares)			221,241	94,399
Related tax benefit realized			$ 9	$ 3

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income	$ 657	$ 722	$ 677	$ 702	$ 710	$ 552	$ 2,056	$ 1,964
Dividend equivalent payments, basic	(1)			(2)			(4)	(4)
Dividend equivalent payments, diluted	0			0			0	(1)
Income available to common stockholders, basic	656			700			2,052	1,960
Income available to common stockholders, diluted	$ 657			$ 702			$ 2,056	$ 1,963
Weighted-average shares outstanding (in shares)	262.1			275.5			264.6	280.1
Dilutive effect of outstanding options and share-settled awards (in shares)	2.2			2.7			2.3	2.5
Adjusted weighted-average shares outstanding (in shares)	264.3			278.2			266.9	282.6
Basic (in dollars per share)	$ 2.50			$ 2.54			$ 7.76	$ 7
Diluted (in dollars per share)	$ 2.49			$ 2.52			$ 7.70	$ 6.95

Earnings Per Share - Antidiluti

Earnings Per Share - Antidilutive Securities Excluded From Computation Of Earnings Per Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0	0	0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 16,359	$ 15,362	$ 16,359
Net Income (Loss)		(1)	(9)
Reclassification of Stranded Tax Effects		0	(88)
Reclassification Adjustments		11	18
Ending Balance	16,418	15,238	15,480
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(356)	(563)	(356)
Reclassification of Stranded Tax Effects	(88)
Ending Balance	(448)	(553)	(435)
Pensions And Other Postretirement Liabilities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(300)	(497)	(300)
Net Income (Loss)		0	(11)
Reclassification of Stranded Tax Effects		0	(86)
Reclassification Adjustments		11	18
Ending Balance		(486)	(379)
Accumulated Other Comprehensive Loss Equity Investees
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ (56)	(66)	(56)
Net Income (Loss)		(1)	2
Reclassification of Stranded Tax Effects		0	(2)
Reclassification Adjustments		0	0
Ending Balance		$ (67)	$ (56)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification of stranded tax effects		$ 0	$ (88)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification of stranded tax effects	$ (88)
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification of stranded tax effects	(88)
Retained Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification of stranded tax effects	88
Retained Income | Accounting Standards Update 2018-02
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification of stranded tax effects	$ 88

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired during period (in shares)							8.4	12.8
Stock repurchased and retired during period, cost	$ 500	$ 550	$ 500	$ 1,600	$ 400	$ 300	$ 1,600	$ 2,100
Stock repurchased and retired since beginning of stock repurchase program in 2006 (in shares)							194
Stock repurchased and retired since beginning of stock repurchase program in 2006, cost							$ 15,700
Accelerated Stock Repurchase Program, ASR
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired during period (in shares)								5.7
Ongoing Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchased and retired during period (in shares)								7.1

Investments (Details)

Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Equity Method Investee
Schedule of Investments [Line Items]
Equity method investment, ownership percentage	58.00%		58.00%
Conrail Voting
Schedule of Investments [Line Items]
Equity method investment, ownership percentage	50.00%		50.00%
Conrail Inc
Schedule of Investments [Line Items]
Equity method investments	$ 1,400		$ 1,400		$ 1,300
Expenses from transactions with related party	37	$ 38	112	$ 112
Equity in the earnings of investee	13	12	36	46
Due to affiliate, noncurrent	$ 280		$ 280		$ 280
Due to affiliate, average interest rate			2.90%		2.90%
TTX Company
Schedule of Investments [Line Items]
Equity method investment, ownership percentage	19.65%		19.65%
Expenses from transactions with related party	$ 61	64	$ 183	197
Equity in the earnings of investee	$ 19	$ 16	$ 44	$ 49

Debt (Details)

Debt (Details) - USD ($)	Sep. 30, 2019	May 31, 2019	Apr. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Restricted cash	$ 88,000,000			$ 88,000,000
3.80% Senior Notes Due 2028 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount		$ 200,000,000
Interest rate, stated percentage		3.80%
4.10% Senior Notes Due 2049 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount		$ 400,000,000
Interest rate, stated percentage		4.10%
5.10% Senior Notes Due 2118 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount		$ 200,000,000
Interest rate, stated percentage		5.10%
Securitization Borrowings
Debt Instrument [Line Items]
Current borrowing capacity		$ 450,000,000	$ 400,000,000
Accounts receivable securitization balance	$ 350,000,000			$ 0

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Sep. 30, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
ROU assets			$ 561
Operating lease, liability			$ 561
Renewal term			99 years
Termination period			30 days
Estimated construction cost, noncancellable lease	$ 550
Residual value guarantee, percentage	90.00%
Right-of-use assets obtained in exchange for new operating lease liabilities			$ 47
Operating cash flows from operating leases			$ 85
Proceeds from sale of leaseback transactions		$ 82
Sale and leaseback transaction, gain (loss)		$ 15
Equipment | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term			1 year
Equipment | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term			9 years
Line of Road and Property Lease | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term			1 year
Line of Road and Property Lease | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term			138 years
Building
Lessee, Lease, Description [Line Items]
Lease not yet commenced, term of contract			5 years
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
ROU assets				$ 586
Operating lease, liability				$ 586

Leases - Operating Lease Includ

Leases - Operating Lease Included in Balance Sheet (Details) $ in Millions	Sep. 30, 2019USD ($)
Assets
ROU assets	$ 561
Liabilities
Current lease liabilities	97
Non-current lease liabilities	464
Total lease liabilities	$ 561

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease expense	$ 29	$ 85
Variable lease expense	15	43
Short-term lease expense	1	4
Total lease expense	$ 45	$ 132

Leases - Additional Information

Leases - Additional Information (Details)	Sep. 30, 2019
Leases [Abstract]
Weighted-average remaining lease term (years) on operating leases	8 years 3 months 25 days
Weighted-average discount rates on operating leases	3.52%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Millions	Sep. 30, 2019USD ($)
Leases [Abstract]
2019 - 3 months	$ 30
2020	110
2021	103
2022	79
2023	69
2024 and subsequent years	266
Total lease payments	657
Less: Interest	96
Present value of lease liabilities	$ 561

Leases - Prior Year Future Mini

Leases - Prior Year Future Minimum Lease Payments (Details) $ in Millions	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 101
2020	95
2021	88
2022	75
2023	69
2024 and subsequent years	267
Total	$ 695

Pensions and Other Postretire_3

Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 9	$ 9	$ 26	$ 29
Interest cost	24	21	70	63
Expected return on plan assets	(45)	(44)	(134)	(133)
Amortization of net losses	11	14	33	42
Amortization of prior service benefit	0	0	0	0
Net expense (benefit)	(1)	0	(5)	1
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	2	2	5	6
Interest cost	4	4	13	12
Expected return on plan assets	(4)	(4)	(11)	(12)
Amortization of net losses	0	0	0	0
Amortization of prior service benefit	(6)	(6)	(18)	(18)
Net expense (benefit)	$ (4)	$ (4)	$ (11)	$ (12)

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current maturities, fair value	$ (11,486)	$ (11,145)
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current maturities, fair value	$ (14,131)	$ (12,203)

Commitments and Contingencies (

Commitments and Contingencies (Details)	9 Months Ended
	Sep. 30, 2019USD ($)location	Dec. 31, 2018USD ($)location
Commitments and Contingencies Disclosure [Abstract]
Environmental liability	$ 60,000,000	$ 55,000,000
Current environmental liability	$ 15,000,000	$ 15,000,000
Known cleanup and remediation locations and projects | location	113	114
Number of sites - representative sample | location	16
Liability associated with those sites	$ 42,000,000
Environmental locations representative sample liability payout period, in years	5 years
Responsible locations with another party | location	11
Self-insured injury/damage to third party - up to	$ 50,000,000
Self-insured injury/damage to third parties - and above, per occurrence	1,100,000,000
Self-insured injury/damage to third parties - and above, per occurrence for specific perils	1,500,000,000
Self-insured NS owned property - up to	25,000,000
Self-insured NS owned property - and above, per occurrence	$ 200,000,000