Exhibit 12.1
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
Year ended December 31, | ||||||||||||||||||||||||
Six months ended June 30, 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||
EARNINGS | ||||||||||||||||||||||||
Income from continuing operations before income taxes as reported | $ | 1,497 | $ | 2,918 | $ | 2,367 | $ | 1,622 | $ | 2,750 | $ | 2,237 | ||||||||||||
Add (subtract): | ||||||||||||||||||||||||
Total interest expenses (as detailed below) | 267 | 504 | 517 | 499 | 491 | 520 | ||||||||||||||||||
Amortization of capitalized interest | 5 | 9 | 8 | 7 | 6 | 6 | ||||||||||||||||||
Income of partially owned entities(1) | (18 | ) | (39 | ) | (43 | ) | (36 | ) | (40 | ) | (57 | ) | ||||||||||||
Total earnings | $ | 1,751 | $ | 3,392 | $ | 2,849 | $ | 2,092 | $ | 3,207 | $ | 2,706 | ||||||||||||
FIXED CHARGES | ||||||||||||||||||||||||
Interest expense on debt | $ | 242 | $ | 455 | $ | 462 | $ | 467 | $ | 444 | $ | 441 | ||||||||||||
Interest expense on unrecognized tax benefit | 1 | (9 | ) | 1 | (6 | ) | (15 | ) | 12 | |||||||||||||||
Other interest expense | 4 | 12 | 16 | 1 | 17 | 15 | ||||||||||||||||||
Calculated interest portion of rent expense(2) | 20 | 46 | 38 | 37 | 45 | 52 | ||||||||||||||||||
Total interest expenses | 267 | 504 | 517 | 499 | 491 | 520 | ||||||||||||||||||
Capitalized interest | 10 | 19 | 15 | 17 | 15 | 14 | ||||||||||||||||||
Total fixed charges | $ | 277 | $ | 523 | $ | 532 | $ | 516 | $ | 506 | $ | 534 | ||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 6.32 | 6.49 | 5.36 | 4.05 | 6.34 | 5.07 |
(1) | Represents undistributed income of equity investees included in income from continuing operations before income taxes as reported. |
(2) | Interest component of leases includes one-third of rental expense which approximates the interest component of operating leases. |