PAGE 113
EXHIBIT 11 Page 1 of 4
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
1993 1992 1991
---- ---- ----
Computation for Statements of Income
- ------------------------------------
Income before cumulative effects of
changes in accounting principles $ 548.7 $ 557.7 $ 29.7*
------- ------- -------
Cumulative effects of changes in
accounting principles 223.3 -- --
------- ------- -------
Weighted average number of shares
outstanding 139.4 141.5 147.8
------- ------- -------
Primary earnings per share:
Income before accounting changes $ 3.94 $ 3.94 $ 0.20
Cumulative effects of accounting
changes 1.60 -- --
------- ------- -------
Net income $ 5.54 $ 3.94 $ 0.20
======= ======= =======
Additional Primary Computation
- ------------------------------
Income before cumulative effects of
changes in accounting principles $ 548.7 $ 557.7 $ 29.7
------- ------- -------
Cumulative effects of changes in
accounting principles 223.3 -- --
Adjustment to weighted average number
of shares outstanding:
Weighted average number of shares
outstanding per primary
computation above 139.4 141.5 147.8
Dilutive effect of outstanding
options, stock appreciation
rights (SARs) and performance
share units (PSUs) (as determined
by the application of the
treasury stock method) (1) 1.2 1.1 1.0
------- ------- -------
Weighted average number of
shares outstanding, as
adjusted 140.6 142.6 148.8
======= ======= =======
* Included in 1991 results is a special charge that increased
transportation operating expenses by $680 million (see Note 15 of Notes
to Consolidated Financial Statements on page 85).
PAGE 114
EXHIBIT 11 Page 2 of 4
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
1993 1992 1991
---- ---- ----
Primary earnings per share,
as adjusted (2):
Income before accounting changes $ 3.90 $ 3.91 $ 0.20
Cumulative effects of accounting
changes 1.59 -- --
------- ------- -------
Net income $ 5.49 $ 3.91 $ 0.20
======= ======= =======
(1) See Note 13 of Notes to Consolidated Financial Statements on page 83
for a description of the Long-Term Incentive Plan.
(2) These calculations are submitted in accordance with Regulation S-K
item 601(b)(11) although not required by footnote 2 to paragraph 14 of
APB Opinion No. 15 because they result in dilution of less than
3 percent.
PAGE 115
EXHIBIT 11 Page 3 of 4
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
1993 1992 1991
---- ---- ----
Fully Diluted Computation
- -------------------------
Income before cumulative effects
of changes in accounting
principles, per primary
computation $ 548.7 $ 557.7 $ 29.7
Adjustment to increase earnings
to requisite level to earn
maximum PSUs, net of tax effect 162.1 167.9 658.4
------- ------- -------
Income before cumulative effects,
as adjusted 710.8 725.6 688.1
Cumulative effects of changes in
accounting principles 223.3 -- --
------- ------- -------
Net income, as adjusted $ 934.1 $ 725.6 $ 688.1
======= ======= =======
Adjustment to weighted average
number of shares outstanding, as
adjusted for additional primary
calculation:
Weighted average number of
shares outstanding, as
adjusted per additional
primary computation on page 1 140.6 142.6 148.8
Additional dilutive effect of
outstanding options and SARs
(as determined by the
application of the treasury
stock method using period
end market price) 0.2 -- 0.2
Additional shares issuable at
maximum level for PSUs 0.2 0.2 0.2
------- ------- -------
Weighted average number of
shares, as adjusted 141.0 142.8 149.2
------- ------- -------
PAGE 116
EXHIBIT 11 Page 4 of 4
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
1993 1992 1991
---- ---- ----
Fully diluted earnings per share (3):
Income before accounting changes $ 5.04 $ 5.08 $ 4.61
Cumulative effects of accounting
changes 1.58 -- --
------- ------- -------
Net income $ 6.62 $ 5.08 $ 4.61
======= ======= =======
(3) These calculations are submitted in accordance with Regulation S-K
item 601(b)(11) although they are contrary to paragraph 40 of APB
Opinion No. 15 because they produce an anti-dilutive result.