Virginia
|
52-1188014
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
|
Three Commercial Place
|
23510-2191
|
|
Norfolk,
|
Virginia
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
(757)
|
629-2680
|
|
(Registrant’s telephone number, including area code)
|
||
No Change
|
||
(Former name, former address and former fiscal year, if changed since last report)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Norfolk Southern Corporation Common Stock (Par Value $1.00)
|
NSC
|
New York Stock Exchange
|
Class
|
|
Outstanding at September 30, 2019
|
|
Common Stock ($1.00 par value per share)
|
|
260,746,663
|
(excluding 20,320,777 shares held by the registrant’s
|
|
|
consolidated subsidiaries)
|
|
|
Page
|
|
|
|||
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|
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||
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||
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||
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||
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||
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||
|
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|
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|
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|
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|
|||
|
|||
|
|||
|
|||
|
|
|
|
|
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
($ in millions, except per share amounts)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
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
|
$
|
2.50
|
|
|
$
|
2.54
|
|
|
$
|
7.76
|
|
|
$
|
7.00
|
|
Diluted
|
2.49
|
|
|
2.52
|
|
|
7.70
|
|
|
6.95
|
|
||||
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
($ in millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
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) of equity investees
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
||||
Other comprehensive income, 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
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
($ in millions)
|
||||||
|
|
|
|
||||
Assets
|
|
|
|
|
|
||
Current 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
|
|
|
|
|
|
||||
Liabilities and stockholders’ equity
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
1,407
|
|
|
$
|
1,505
|
|
Short-term debt
|
350
|
|
|
—
|
|
||
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
|
|
|
|
First Nine Months
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
($ in millions)
|
||||||
|
|
|
|
|
||||
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 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:
|
|
|
|
|
|
|||
|
Cash paid during the period for:
|
|
|
|
|
|
||
|
Interest (net of amounts capitalized)
|
$
|
392
|
|
|
$
|
327
|
|
|
Income taxes (net of refunds)
|
404
|
|
|
314
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Accum. Other
Comprehensive
Loss
|
|
Retained
Income
|
|
Total
|
||||||||||
|
($ in millions, except per share amounts)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2018
|
$
|
269
|
|
|
$
|
2,216
|
|
|
$
|
(563
|
)
|
|
$
|
13,440
|
|
|
$
|
15,362
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
|
|
|
|
|
677
|
|
|
677
|
|
||||||||
Other comprehensive income
|
|
|
|
|
3
|
|
|
|
|
3
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
680
|
|
|||||||||
Dividends on common stock,
|
|
|
|
|
|
|
|
|
|
||||||||||
$0.86 per share
|
|
|
|
|
|
|
(230
|
)
|
|
(230
|
)
|
||||||||
Share repurchases
|
(3
|
)
|
|
(22
|
)
|
|
|
|
(475
|
)
|
|
(500
|
)
|
||||||
Stock-based compensation
|
1
|
|
|
19
|
|
|
|
|
(1
|
)
|
|
19
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at March 31, 2019
|
267
|
|
|
2,213
|
|
|
(560
|
)
|
|
13,411
|
|
|
15,331
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
|
|
|
|
|
722
|
|
|
722
|
|
||||||||
Other comprehensive income
|
|
|
|
|
3
|
|
|
|
|
3
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
725
|
|
|||||||||
Dividends on common stock,
|
|
|
|
|
|
|
|
|
|
||||||||||
$0.86 per share
|
|
|
|
|
|
|
(228
|
)
|
|
(228
|
)
|
||||||||
Share repurchases
|
(2
|
)
|
|
(22
|
)
|
|
|
|
(526
|
)
|
|
(550
|
)
|
||||||
Stock-based compensation
|
|
|
35
|
|
|
|
|
(2
|
)
|
|
33
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at June 30, 2019
|
265
|
|
|
2,226
|
|
|
(557
|
)
|
|
13,377
|
|
|
15,311
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
|
|
|
|
|
657
|
|
|
657
|
|
||||||||
Other comprehensive income
|
|
|
|
|
4
|
|
|
|
|
4
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
661
|
|
|||||||||
Dividends on common stock,
|
|
|
|
|
|
|
|
|
|
||||||||||
$0.94 per share
|
|
|
|
|
|
|
(247
|
)
|
|
(247
|
)
|
||||||||
Share repurchases
|
(3
|
)
|
|
(21
|
)
|
|
|
|
(476
|
)
|
|
(500
|
)
|
||||||
Stock-based compensation
|
|
|
14
|
|
|
|
|
(1
|
)
|
|
13
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at September 30, 2019
|
$
|
262
|
|
|
$
|
2,219
|
|
|
$
|
(553
|
)
|
|
$
|
13,310
|
|
|
$
|
15,238
|
|
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Accum. Other
Comprehensive Loss |
|
Retained
Income |
|
Total
|
||||||||||
|
($ in millions, except per share amounts)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2017
|
$
|
285
|
|
|
$
|
2,254
|
|
|
$
|
(356
|
)
|
|
$
|
14,176
|
|
|
$
|
16,359
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
|
|
|
|
|
552
|
|
|
552
|
|
||||||||
Other comprehensive loss
|
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
548
|
|
|||||||||
Dividends on common stock,
|
|
|
|
|
|
|
|
|
|
||||||||||
$0.72 per share
|
|
|
|
|
|
|
(205
|
)
|
|
(205
|
)
|
||||||||
Share repurchases
|
(2
|
)
|
|
(16
|
)
|
|
|
|
(282
|
)
|
|
(300
|
)
|
||||||
Stock-based compensation
|
1
|
|
|
17
|
|
|
|
|
(2
|
)
|
|
16
|
|
||||||
Reclassification of stranded
|
|
|
|
|
|
|
|
|
|
||||||||||
tax effects
|
|
|
|
|
(88
|
)
|
|
88
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at March 31, 2018
|
284
|
|
|
2,255
|
|
|
(448
|
)
|
|
14,327
|
|
|
16,418
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
|
|
|
|
|
710
|
|
|
710
|
|
||||||||
Other comprehensive income
|
|
|
|
|
7
|
|
|
|
|
7
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
717
|
|
|||||||||
Dividends on common stock,
|
|
|
|
|
|
|
|
|
|
||||||||||
$0.72 per share
|
|
|
|
|
|
|
(203
|
)
|
|
(203
|
)
|
||||||||
Share repurchases
|
(3
|
)
|
|
(20
|
)
|
|
|
|
(377
|
)
|
|
(400
|
)
|
||||||
Stock-based compensation
|
|
|
28
|
|
|
|
|
(1
|
)
|
|
27
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at June 30, 2018
|
281
|
|
|
2,263
|
|
|
(441
|
)
|
|
14,456
|
|
|
16,559
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
|
|
|
|
|
702
|
|
|
702
|
|
||||||||
Other comprehensive income
|
|
|
|
|
6
|
|
|
|
|
6
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
708
|
|
|||||||||
Dividends on common stock,
|
|
|
|
|
|
|
|
|
|
||||||||||
$0.80 per share
|
|
|
|
|
|
|
(219
|
)
|
|
(219
|
)
|
||||||||
Share repurchases
|
(8
|
)
|
|
(300
|
)
|
|
|
|
(1,292
|
)
|
|
(1,600
|
)
|
||||||
Stock-based compensation
|
1
|
|
|
33
|
|
|
|
|
(2
|
)
|
|
32
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at September 30, 2018
|
$
|
274
|
|
|
$
|
1,996
|
|
|
$
|
(435
|
)
|
|
$
|
13,645
|
|
|
$
|
15,480
|
|
|
|
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
|
|
|
|
September 30,
2019 |
|
December 31, 2018
|
||||
|
|
($ in millions)
|
||||||
Customer
|
|
$
|
720
|
|
|
$
|
740
|
|
Non-customer
|
|
253
|
|
|
269
|
|
||
|
|
|
|
|
||||
Accounts receivable – net
|
|
$
|
973
|
|
|
$
|
1,009
|
|
|
|
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
|
|
|
|
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
|
|
|
|
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
|
|
|
|
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
|
|
|
|
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
|
|
|
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,
shares in millions) |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
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
|
)
|
|
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
|
|
|
September 30, 2019
|
|
|
|
|
Weighted-average remaining lease term (years) on operating leases
|
8.32
|
|
|
|
|
Weighted-average discount rates on operating leases
|
3.52
|
%
|
|
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
|
|
|
December 31, 2018
|
||
|
($ in millions)
|
||
2019
|
$
|
101
|
|
2020
|
95
|
|
|
2021
|
88
|
|
|
2022
|
75
|
|
|
2023
|
69
|
|
|
2024 and subsequent years
|
267
|
|
|
|
|
||
Total
|
$
|
695
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
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
|
)
|
|
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
|
)
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||||||
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||
Income from railway operations
|
$
|
996
|
|
|
$
|
1,020
|
|
|
(2%)
|
|
$
|
3,027
|
|
|
$
|
2,881
|
|
|
5%
|
Net income
|
$
|
657
|
|
|
$
|
702
|
|
|
(6%)
|
|
$
|
2,056
|
|
|
$
|
1,964
|
|
|
5%
|
Diluted earnings per share
|
$
|
2.49
|
|
|
$
|
2.52
|
|
|
(1%)
|
|
$
|
7.70
|
|
|
$
|
6.95
|
|
|
11%
|
Railway operating ratio (percent)
|
64.9
|
|
|
65.4
|
|
|
(1%)
|
|
64.8
|
|
|
66.4
|
|
|
(2%)
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||||||
Revenues
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||
Merchandise:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Chemicals
|
$
|
481
|
|
|
$
|
481
|
|
|
—%
|
|
$
|
1,406
|
|
|
$
|
1,400
|
|
|
—%
|
Agriculture products
|
394
|
|
|
388
|
|
|
2%
|
|
1,185
|
|
|
1,124
|
|
|
5%
|
||||
Metals and construction
|
391
|
|
|
401
|
|
|
(2%)
|
|
1,192
|
|
|
1,170
|
|
|
2%
|
||||
Automotive
|
247
|
|
|
245
|
|
|
1%
|
|
749
|
|
|
741
|
|
|
1%
|
||||
Forest and consumer
|
218
|
|
|
222
|
|
|
(2%)
|
|
641
|
|
|
625
|
|
|
3%
|
||||
Merchandise
|
1,731
|
|
|
1,737
|
|
|
—%
|
|
5,173
|
|
|
5,060
|
|
|
2%
|
||||
Intermodal
|
707
|
|
|
746
|
|
|
(5%)
|
|
2,127
|
|
|
2,138
|
|
|
(1%)
|
||||
Coal
|
403
|
|
|
464
|
|
|
(13%)
|
|
1,306
|
|
|
1,364
|
|
|
(4%)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
2,841
|
|
|
$
|
2,947
|
|
|
(4%)
|
|
$
|
8,606
|
|
|
$
|
8,562
|
|
|
1%
|
Units
|
|
|
|
|
|
|
|
||||||||
Merchandise:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Chemicals
|
130.1
|
|
|
134.7
|
|
|
(3%)
|
|
385.8
|
|
|
394.3
|
|
|
(2%)
|
Agriculture products
|
132.1
|
|
|
136.8
|
|
|
(3%)
|
|
404.3
|
|
|
404.1
|
|
|
—%
|
Metals and construction
|
191.0
|
|
|
199.9
|
|
|
(4%)
|
|
561.6
|
|
|
582.6
|
|
|
(4%)
|
Automotive
|
99.5
|
|
|
98.4
|
|
|
1%
|
|
299.4
|
|
|
305.9
|
|
|
(2%)
|
Forest and consumer
|
69.2
|
|
|
76.0
|
|
|
(9%)
|
|
207.2
|
|
|
220.5
|
|
|
(6%)
|
Merchandise
|
621.9
|
|
|
645.8
|
|
|
(4%)
|
|
1,858.3
|
|
|
1,907.4
|
|
|
(3%)
|
Intermodal
|
1,059.9
|
|
|
1,116.2
|
|
|
(5%)
|
|
3,179.4
|
|
|
3,257.2
|
|
|
(2%)
|
Coal
|
218.7
|
|
|
255.8
|
|
|
(15%)
|
|
713.3
|
|
|
778.5
|
|
|
(8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
1,900.5
|
|
|
2,017.8
|
|
|
(6%)
|
|
5,751.0
|
|
|
5,943.1
|
|
|
(3%)
|
Revenue per Unit
|
|
|
|
|
|
|
|
||||||||||||
Merchandise:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Chemicals
|
$
|
3,699
|
|
|
$
|
3,573
|
|
|
4%
|
|
$
|
3,645
|
|
|
$
|
3,551
|
|
|
3%
|
Agriculture products
|
2,986
|
|
|
2,837
|
|
|
5%
|
|
2,932
|
|
|
2,781
|
|
|
5%
|
||||
Metals and construction
|
2,045
|
|
|
2,006
|
|
|
2%
|
|
2,122
|
|
|
2,008
|
|
|
6%
|
||||
Automotive
|
2,480
|
|
|
2,486
|
|
|
—%
|
|
2,502
|
|
|
2,422
|
|
|
3%
|
||||
Forest and consumer
|
3,145
|
|
|
2,929
|
|
|
7%
|
|
3,091
|
|
|
2,838
|
|
|
9%
|
||||
Merchandise
|
2,783
|
|
|
2,690
|
|
|
3%
|
|
2,784
|
|
|
2,653
|
|
|
5%
|
||||
Intermodal
|
668
|
|
|
669
|
|
|
—%
|
|
669
|
|
|
656
|
|
|
2%
|
||||
Coal
|
1,842
|
|
|
1,812
|
|
|
2%
|
|
1,831
|
|
|
1,752
|
|
|
5%
|
||||
Total
|
1,495
|
|
|
1,461
|
|
|
2%
|
|
1,496
|
|
|
1,441
|
|
|
4%
|
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||||||||||
|
|
Increase (Decrease)
|
|
Increase (Decrease)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Merchandise
|
|
Intermodal
|
|
Coal
|
|
Merchandise
|
|
Intermodal
|
|
Coal
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Volume
|
|
$
|
(64
|
)
|
|
$
|
(38
|
)
|
|
$
|
(67
|
)
|
|
$
|
(130
|
)
|
|
$
|
(51
|
)
|
|
$
|
(114
|
)
|
Fuel surcharge revenue
|
|
(10
|
)
|
|
(12
|
)
|
|
(14
|
)
|
|
4
|
|
|
(8
|
)
|
|
(23
|
)
|
||||||
Rate, mix and other
|
|
68
|
|
|
11
|
|
|
20
|
|
|
239
|
|
|
48
|
|
|
79
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
$
|
(6
|
)
|
|
$
|
(39
|
)
|
|
$
|
(61
|
)
|
|
$
|
113
|
|
|
$
|
(11
|
)
|
|
$
|
(58
|
)
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Domestic
|
643.2
|
|
|
704.0
|
|
|
(9%)
|
|
1,935.3
|
|
|
2,082.2
|
|
|
(7%)
|
International
|
416.7
|
|
|
412.2
|
|
|
1%
|
|
1,244.1
|
|
|
1,175.0
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
1,059.9
|
|
|
1,116.2
|
|
|
(5%)
|
|
3,179.4
|
|
|
3,257.2
|
|
|
(2%)
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Utility
|
14,124
|
|
|
16,213
|
|
|
(13%)
|
|
47,008
|
|
|
48,773
|
|
|
(4%)
|
Export
|
5,403
|
|
|
6,621
|
|
|
(18%)
|
|
18,417
|
|
|
21,775
|
|
|
(15%)
|
Domestic metallurgical
|
3,649
|
|
|
4,226
|
|
|
(14%)
|
|
10,431
|
|
|
11,624
|
|
|
(10%)
|
Industrial
|
1,125
|
|
|
1,352
|
|
|
(17%)
|
|
3,528
|
|
|
4,069
|
|
|
(13%)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
24,301
|
|
|
28,412
|
|
|
(14%)
|
|
79,384
|
|
|
86,241
|
|
|
(8%)
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||||||
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
$
|
682
|
|
|
$
|
725
|
|
|
(6%)
|
|
$
|
2,121
|
|
|
$
|
2,168
|
|
|
(2%)
|
Purchased services and rents
|
423
|
|
|
450
|
|
|
(6%)
|
|
1,265
|
|
|
1,281
|
|
|
(1%)
|
||||
Fuel
|
226
|
|
|
274
|
|
|
(18%)
|
|
730
|
|
|
812
|
|
|
(10%)
|
||||
Depreciation
|
286
|
|
|
276
|
|
|
4%
|
|
853
|
|
|
821
|
|
|
4%
|
||||
Materials and other
|
228
|
|
|
202
|
|
|
13%
|
|
610
|
|
|
599
|
|
|
2%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
1,845
|
|
|
$
|
1,927
|
|
|
(4%)
|
|
$
|
5,579
|
|
|
$
|
5,681
|
|
|
(2%)
|
•
|
employment levels (down $34 million for the quarter and $58 million for the first nine months),
|
•
|
overtime and recrews (down $13 million for the quarter and $30 million for the first nine months),
|
•
|
incentive and stock-based compensation (down $4 million for the quarter and $26 million for the first nine months),
|
•
|
higher capitalized labor ($3 million for the quarter and $14 million for the first nine months),
|
•
|
increased pay rates (up $17 million for the quarter and $59 million for the first nine months),
|
•
|
2018 employment tax refund ($31 million unfavorable in the first nine months), and
|
•
|
other (down $6 million for the quarter and $9 million for the first nine months).
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||||||
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Purchased services
|
$
|
355
|
|
|
$
|
347
|
|
|
2%
|
|
$
|
1,048
|
|
|
$
|
1,007
|
|
|
4%
|
Equipment rents
|
68
|
|
|
103
|
|
|
(34%)
|
|
217
|
|
|
274
|
|
|
(21%)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
423
|
|
|
$
|
450
|
|
|
(6%)
|
|
$
|
1,265
|
|
|
$
|
1,281
|
|
|
(1%)
|
|
Third Quarter
|
|
First Nine Months
|
||||||||||||||||
|
2019
|
|
2018
|
|
% change
|
|
2019
|
|
2018
|
|
% change
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Materials
|
$
|
85
|
|
|
$
|
95
|
|
|
(11%)
|
|
$
|
254
|
|
|
$
|
277
|
|
|
(8%)
|
Casualties and other claims
|
48
|
|
|
46
|
|
|
4%
|
|
147
|
|
|
131
|
|
|
12%
|
||||
Other
|
95
|
|
|
61
|
|
|
56%
|
|
209
|
|
|
191
|
|
|
9%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
$
|
228
|
|
|
$
|
202
|
|
|
13%
|
|
$
|
610
|
|
|
$
|
599
|
|
|
2%
|
|
|
(a) Total
Number
of Shares
(or Units)
|
|
(b) Average
Price Paid
per Share
|
|
(c) Total
Number of
Shares
(or Units)
Purchased
as Part of
Publicly
Announced
Plans or
|
|
(d) Maximum
Number (or
Approximate
Dollar Value)
of Shares (or Units)
that may yet be
purchased under
the Plans or
|
|
|||||
Period
|
|
Purchased (1)
|
|
(or Unit)
|
|
Programs (2)
|
|
Programs (2)
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
July 1-31, 2019
|
|
930,199
|
|
|
$
|
197.38
|
|
|
928,847
|
|
|
32,760,742
|
|
|
August 1-31, 2019
|
|
965,416
|
|
|
175.97
|
|
|
965,088
|
|
|
31,795,654
|
|
|
|
September 1-30, 2019
|
|
819,752
|
|
|
179.23
|
|
|
819,203
|
|
|
30,976,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
|
2,715,367
|
|
|
|
|
|
2,713,138
|
|
|
|
|
|
(1)
|
Of this amount, 2,229 represent shares tendered by employees in connection with the exercise of options under the stockholder-approved Long-Term Incentive Plan.
|
(2)
|
On September 26, 2017, our Board of Directors authorized the repurchase of up to an additional 50 million shares of Common Stock through December 31, 2022. As of September 30, 2019, 31.0 million shares remain authorized for repurchase.
|
|
|
NORFOLK SOUTHERN CORPORATION
Registrant
|
|
|
|
|
|
|
|
|
|
Date:
|
October 23, 2019
|
/s/ Jason A. Zampi
|
|
|
Jason A. Zampi
Vice President and Controller
(Principal Accounting Officer) (Signature)
|
|
|
|
|
|
|
Date:
|
October 23, 2019
|
/s/ Denise W. Hutson
|
|
|
Denise W. Hutson
Corporate Secretary (Signature)
|
Age
|
Rate
|
Up to 45
|
7%
|
45-54
|
10%
|
55-60
|
11%
|
Over 60
|
12%
|
Age at
|
Distribution
|
Time of Deferral
|
Period
|
Up to 50
|
5 Years
|
50 or Over
|
10 Years
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Norfolk Southern Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ James A. Squires
|
|
James A. Squires
|
|
Chairman, President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Norfolk Southern Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Cynthia C. Earhart
|
|
Cynthia C. Earhart
|
|
Executive Vice President Finance and Chief Financial Officer
|
Signed:
|
/s/ James A. Squires
|
|
James A. Squires
|
|
Chairman, President and Chief Executive Officer
|
|
Norfolk Southern Corporation
|
Signed:
|
/s/ Cynthia C. Earhart
|
|
Cynthia C. Earhart
|
|
Executive Vice President Finance and Chief Financial Officer
|
|
Norfolk Southern Corporation
|