Attached files
Exhibit 12
Norfolk Southern Corporation and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||
EARNINGS | |||||||||||||||
Income from continuing operations before income | |||||||||||||||
taxes as reported | $ | 2,582 | $ | 2,442 | $ | 3,134 | $ | 2,965 | $ | 2,758 | |||||
Add (subtract): | |||||||||||||||
Total interest expenses (as detailed below) | 602 | 584 | 592 | 576 | 546 | ||||||||||
Amortization of capitalized interest | 12 | 12 | 11 | 12 | 10 | ||||||||||
Income of partially owned entities(1) | (61 | ) | (50 | ) | (46 | ) | (51 | ) | (45 | ) | |||||
Total earnings | $ | 3,135 | $ | 2,988 | $ | 3,691 | $ | 3,502 | $ | 3,269 | |||||
FIXED CHARGES | |||||||||||||||
Interest expense on debt | $ | 563 | $ | 545 | $ | 545 | $ | 525 | $ | 495 | |||||
Interest expense on unrecognized tax benefit | 1 | (3 | ) | 1 | 1 | (1 | ) | ||||||||
Other interest expense | 6 | 7 | 11 | 11 | 10 | ||||||||||
Calculated interest portion of rent expense(2) | 32 | 35 | 35 | 39 | 42 | ||||||||||
Total interest expenses | 602 | 584 | 592 | 576 | 546 | ||||||||||
Capitalized interest | 20 | 21 | 19 | 18 | 20 | ||||||||||
Total fixed charges | $ | 622 | $ | 605 | $ | 611 | $ | 594 | $ | 566 | |||||
RATIO OF EARNINGS TO FIXED CHARGES | 5.04 | 4.94 | 6.04 | 5.90 | 5.78 |
(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.