Exhibit 12.1
NORFOLK SOUTHERN RAILWAY COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
Year ended December 31,
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2003 2002 2001 2000 1999
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EARNINGS
Income from continuing operations before income taxes as reported $ 612 $ 720 $ 551 $ 285 $ 506
Add:
Total interest expenses (as detailed below) 82 114 87 185 130
Amortization of capitalized interest 5 6 5 5 4
Income (loss) of partially owned entities (1) (6) (9) (10) 12 --
Subsidiaries' preferred dividend requirements -- 2 2 2 2
Income before income taxes, as adjusted $ 693 $ 833 $ 635 $ 489 $ 642
FIXED CHARGES
Interest expense on debt $ 24 $ 30 $ 37 $ 37 $ 39
Other interest expense 19 44 10 109 57
Calculated interest portion of rent expense 39 40 40 39 34
Total interest expenses 82 114 87 185 130
Capitalized interest 12 11 17 18 15
Subsidiaries' preferred dividend requirement on a -- 4 4 4 4
pretax basis
Total fixed charges $ 94 $ 129 $ 108 $ 207 $ 149
RATIO OF EARNINGS TO FIXED CHARGES 7.37x 6.46x 5.88x 2.36x 4.31x
(1) Includes: (a) the distributed income of 20%-49% owned entities, net of
equity recorded in undistributed income and the minority income of consolidated
entities which have fixed charges.
The computations do not include $0.3 million of interest expense related to $7.8
million of debt guaranteed for a less than 50% owned entity.