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2010-12-31 10-K 0000702165 356109351 Yes Large Accelerated Filer 19511714775 NORFOLK SOUTHERN CORP No Yes 364 200000000 200000000 100000000 100000000 500000000 350000000 184000000 187000000 94000000 60000000 51000000 -16000000 38000000 64000000 <div> <table cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="height: 15pt;" width="385"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; Balance </td> <td>&nbsp; </td> <td>&nbsp; Net </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; Balance </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; at Beginning </td> <td>&nbsp; </td> <td>&nbsp; Gain </td> <td>&nbsp; </td> <td>&nbsp; Reclassification </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; at End </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; <u>of Year</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>(Loss)</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>Adjustments</u> </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; <u>of Year</u> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Year-ended 2010 </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; &nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;Pensions and other postretirement liabilities </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (764) </td> <td>&nbsp; $ </td> <td>&nbsp; (26) </td> <td>&nbsp; $ </td> <td>&nbsp; 64 </td> <td>&nbsp; $ </td> <td>&nbsp; (726) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; (89) </td> <td>&nbsp; </td> <td>&nbsp; 10&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; - </td> <td>&nbsp; </td> <td>&nbsp; (79) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (853) </td> <td>&nbsp; $ </td> <td>&nbsp; (16) </td> <td>&nbsp; $ </td> <td>&nbsp; 64 </td> <td>&nbsp; $ </td> <td>&nbsp; (805) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Year-ended 2009 </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><font style="height: 15pt;" class="_mt">&nbsp;&nbsp;&nbsp;Pensions and other postretirement liabilities</font> </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (831) </td> <td>&nbsp; $ </td> <td>&nbsp; 29 </td> <td>&nbsp; $ </td> <td>&nbsp; 38 </td> <td>&nbsp; $ </td> <td>&nbsp; (764) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;Other comprehensive loss of equity investees </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; (111) </td> <td>&nbsp; </td> <td>&nbsp; 22 </td> <td>&nbsp; </td> <td>&nbsp; - </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; (89) </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (942) </td> <td>&nbsp; $ </td> <td>&nbsp; 51 </td> <td>&nbsp; $ </td> <td>&nbsp; 38 </td> <td style="border-top-style: none;">$ </td> <td>&nbsp; (853) </td></tr></table> </div> 24000000 247000000 308000000 <div> <p align="left"><strong>Allowance for Doubtful Accounts</strong> </p> <p align="left">NS' allowance for doubtful accounts was $<font class="_mt">5</font> million at both December 31, 2010 and 2009.&nbsp;&nbsp;To determine its allowance for doubtful accounts, NS evaluates historical loss experience (which has not been significant), the characteristics of current accounts, and general economic conditions and trends.</p> </div> 1 1.61 -52000000 -48000000 0.05 1000000000 12 5 4 6 4 9 1000000 1000000 0.05 6000000 116000000 265000000 261000000 233000000 254000000 571000000 647000000 5000000 173000000 202000000 2000000 1000000 22000000 8000000 24000000 9000000 43000000 80000000 65000000 79000000 336000000 336000000 1000000000 5 1650000000 1264000000 1290000000 855000000 650000000 1031000000 1650000000 1264000000 1290000000 855000000 900000000 731000000 <div> <table class="excel482" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 311pt; height: 15pt;" class="excel483" width="415"> </td> <td style="width: 20pt;" class="excel483" width="27"> </td> <td style="width: 13pt;" class="excel492" width="17"> </td> <td style="width: 180pt;" class="excel492" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel485"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel486">2010</td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel486">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel485"> </td> <td class="excel493"> </td> <td class="excel493"> </td> <td class="excel493" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Notes and debentures:</td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">5.88</font>%, maturing to 2014</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel487" align="right">731&nbsp;</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel487" align="right">1,031&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">6.40</font>%, maturing 2016 to 2018</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,650&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,650&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">7.25</font>%, maturing 2019 to 2025</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,264&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,264&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">7.11</font>%, maturing 2027 to 2031</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,290&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,290&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">7.21</font>%, maturing 2037 and 2043</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">855&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">855&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">6.74</font>%, maturing 2097 and 2105</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">900&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">650&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Securitization borrowings, <font class="_mt">1.54</font>%</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">200&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">200&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Other debt, <font class="_mt">5.25</font>%, maturing to 2024</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">251&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">337&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Discounts and premiums, net</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(116)</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(124)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total debt</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">7,025&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">7,153&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less current maturities and short-term debt</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(458)</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(474)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt excluding current maturities and short-term debt</td> <td class="excel483"> </td> <td class="excel484">$</td> <td style="border-top-style: none;" class="excel489" align="right">6,567&nbsp;</td> <td class="excel483"> </td> <td class="excel484">$</td> <td style="border-top-style: none;" class="excel489" align="right">6,679&nbsp; </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel483"> </td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Long-term debt maturities subsequent to 2011 as follows:</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2012</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel487" align="right">45</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2013</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">46</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2014</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">445</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2015</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2016 and subsequent years</td> <td class="excel483"> </td> <td class="excel484"> </td> <td style="border-top-style: none;" class="excel490" align="right">6,030</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel491" align="right">6,567</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr></table> </div> <div> <table class="excel409" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 284pt; height: 15pt;" class="excel410" width="378"> </td> <td style="width: 20pt;" class="excel410" width="27"> </td> <td style="width: 13pt;" class="excel419" width="17"> </td> <td style="width: 181pt;" class="excel419" width="241" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel412"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel413">2010</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel413">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel412"> </td> <td class="excel420"> </td> <td class="excel420"> </td> <td class="excel420" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">Deferred tax assets:</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Compensation and benefits, including postretirement</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel414" align="right">617&nbsp;</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel414" align="right">661&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Accruals, including casualty and other claims</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">156&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">164&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Other</td> <td class="excel410"> </td> <td class="excel411"> </td> <td style="border-top-style: none;" class="excel416" align="right">50&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel415" align="right">46&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Total gross deferred tax assets</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">823&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">871&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Less valuation allowance</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">(21)</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">(14)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax asset</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel416" align="right">802&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel416" align="right">857&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">Deferred tax liabilities:</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Property</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(7,453)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(7,195)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Other</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(292)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(267)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Total gross deferred tax liabilities</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">(7,745)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">(7,462)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel417"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel417"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax liability</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(6,943)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(6,605)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Net current deferred tax asset</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">145&nbsp;</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">142&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net long-term deferred tax liability</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel422" align="right">(7,088)</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel422" align="right">(6,747)</td></tr></table> </div> 164000000 156000000 0.75 0.5 54000000 11000000 55000000 12000000 16000000 <div> <table class="excel611" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel612" width="305">&nbsp;</td> <td style="width: 20pt;" class="excel612" width="29">&nbsp;</td> <td style="width: 13pt;" class="excel612" width="19">&nbsp;</td> <td style="width: 80pt;" class="excel612" width="109">&nbsp;</td> <td style="width: 35pt;" class="excel612" width="49">&nbsp;</td> <td style="width: 13pt;" class="excel612" width="19">&nbsp;</td> <td style="width: 80pt;" class="excel618" width="109">Other</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel618">Pension</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel618">Postretirement</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel614">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel615">Benefits</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel615">Benefits</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel614">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel614">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2011</td> <td class="excel612">&nbsp;</td> <td class="excel613">$</td> <td class="excel617" align="right">116</td> <td class="excel612">&nbsp;</td> <td class="excel613">$</td> <td class="excel617" align="right">55</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2012</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">119</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">57</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2013</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">122</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">59</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2014</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">124</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">61</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2015</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">126</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">64</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel612">Years 2016 - 2020</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel617" align="right">650</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel617" align="right">352</td></tr></table> </div> 55000000 12000000 352000000 650000000 8000000 34000000 67000000 3000000 0.045 0.045 0.045 0.045 0.045 0.045 0.0277 0.0312 0.0346 0.0492 0.017 0.023 0.0311 0.033 0.0958 0.0278 0.0234 0.0303 0.0457 0.0148 0.0239 0.0308 0.0331 0.0828 0.333 0.3784 0.0083 0.0132 <font class="_mt">NS' depreciation studies are conducted every three years for equipment and every six years for track assets and other roadway property.</font> 545000000 104000000 128000000 0.01 0.8 144 143 11 15000000 <font class="_mt">five</font> 32 75000000 80000000 131000000 123000000 118000000 26000000 1000000 19000000 26000000 20000000 35000000 2000000 1000000 2000000 2000000 1000000 1000000 <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">2010</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">2009</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Carrying</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Fair</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Carrying</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Fair</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Amount</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Value</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Amount</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Value</td></tr> <tr><td align="left">($ in millions)</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr align="right"><td align="left">Long-term investments</td> <td align="right">$</td> <td align="right">192</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">222&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">237&nbsp; </td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">260&nbsp; </td></tr> <tr align="right"><td align="left">Long-term debt</td> <td align="right">$</td> <td align="right">(6,925)</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">(7,971)</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">(7,053)</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">(8,048)</td></tr></table> </div> 0.01 0.01 4000000 0 30000000 <div> <table class="excel495" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 311pt; height: 15pt;" class="excel496" width="415"> </td> <td style="width: 20pt;" class="excel496" width="27"> </td> <td style="width: 13pt;" class="excel496" width="17"> </td> <td style="width: 66pt;" class="excel504" width="88">Operating</td> <td style="width: 35pt;" class="excel496" width="47"> </td> <td style="width: 13pt;" class="excel496" width="17"> </td> <td style="width: 66pt;" class="excel504" width="88">Capital</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel498"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel499">Leases</td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel499">Leases</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel498"> </td> <td class="excel505"> </td> <td class="excel505"> </td> <td class="excel505" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2011</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel500" align="right">92</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel500" align="right">28&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2012</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">88</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">18&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2013</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">74</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">3&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2014</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">55</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">2&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2015</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">32</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">1&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2016 and subsequent years</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel501" align="right">285</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel501" align="right">2&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel496">&nbsp;&nbsp;&nbsp; Total</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel502" align="right">626</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel500" align="right">54&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel496">Less imputed interest on capital leases at an average rate of <font class="_mt">5</font>%</td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel503" align="right">(2)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel496">&nbsp;&nbsp;&nbsp; Present value of minimum lease payments included in debt</td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel497">$</td> <td style="border-top-style: none;" class="excel506" align="right">52&nbsp;</td></tr></table> </div> 257000000 29000000 18000000 42000000 <div> <table class="excel581" cellspacing="0" cellpadding="0"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel582" width="305">&nbsp;</td> <td style="width: 20pt;" class="excel582" width="29">&nbsp;</td> <td style="width: 13pt;" class="excel587" width="19">&nbsp;</td> <td style="width: 208pt;" class="excel587" colspan="4">One percentage point</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel584">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel585" width="75">Increase</td> <td class="excel582" width="15">&nbsp;</td> <td class="excel582" width="15">&nbsp;</td> <td class="excel585" width="75">Decrease</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel584">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel584">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel582">Increase (decrease) in:</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel582">&nbsp;&nbsp; Total service and interest cost components</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">11</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">(9)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel582">&nbsp;&nbsp; Postretirement benefit obligation</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">143</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">(118)</td></tr></table> </div> 10 29 9 26 20 2000000 50.47 38.72 47.76 2750000000 1622000000 2367000000 924000000 959000000 272000000 268000000 140000000 140000000 344000000 363000000 29000000 32000000 26000000 18000000 -30000000 5000000 100000000 1000000 1000000 1000000 <div> <font style="font-size: 11pt;" class="_mt"> </font> <div><font style="font-size: 11pt;" class="_mt"> </font> <div><font style="font-size: 11pt;" class="_mt"> </font> <div><font style="font-size: 11pt;" class="_mt"> </font> <div><font style="font-size: 11pt;" class="_mt"> </font> <div> <div> <div> <div class="MetaData"> <p align="left"><strong>5.&nbsp;&nbsp;Investments</strong></p> <table class="excel444" border="0" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 284pt; height: 15pt;" class="excel445" width="378"> </td> <td style="width: 20pt;" class="excel445" width="27"> </td> <td style="width: 13pt;" class="excel454" width="17"> </td> <td style="width: 181pt;" class="excel454" width="241" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel447"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel448">2010</td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel448">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel447"> </td> <td class="excel455"> </td> <td class="excel455"> </td> <td class="excel455" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Short-term investments with average remaining maturities:</td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Available-for-sale:</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Certificates of deposit, 5 and 12 months, respectively</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">76</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">10 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Corporate bonds, 4 and 6 months, respectively</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">64</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">20</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Commercial paper, 4 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">35</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Federal government bonds, 9 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">-</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">60 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total available-for-sale</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449" align="right">175</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449" align="right">90 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;Held-to-maturity:</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp; Corporate bonds, 10 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">59</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">-</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp; Federal government bonds, 9 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">49</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">-</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total held-to-maturity</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">108</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">-</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total short-term investments</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel453" align="right">283</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel453" align="right">90 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">Long-term investments:</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Equity method investments:</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Conrail Inc.</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">959</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">924 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;TTX Company</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">363</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">344</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Meridian Speedway LLC</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">268</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">272</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Pan Am Southern LLC</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">140</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">140</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Other</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">69</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">73</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity method investments</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">1,799</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">1,753</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Company-owned life insurance at net cash</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; surrender value</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">202</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">173 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Federal government notes, held to maturity,</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; with average maturities of&nbsp;20 and 26 months, respectively</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">40</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">45 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Corporate bonds, held to maturity, with</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; average maturities of&nbsp;29 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">15</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">56 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Other investments</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">137</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">137 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term investments</td> <td class="excel445"> </td> <td class="excel446">$</td> <td style="border-top-style: none;" class="excel451" align="right">2,193</td> <td class="excel445"> </td> <td class="excel446">$</td> <td style="border-top-style: none;" class="excel451" align="right">2,164 </td></tr></table> <p align="left"><strong>Investment in Conrail</strong></p> <div align="left"> <p align="left">Through a limited liability company, Norfolk Southern and CSX Corporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary is Consolidated Rail Corporation (CRC).&nbsp;&nbsp;NS has a <font class="_mt">58</font>% economic and <font class="_mt">50</font>% voting interest in the jointly owned entity, and CSX has the remainder of the economic and voting interests.&nbsp;&nbsp;NS is amortizing the excess of the purchase price over Conrail's net equity using the principles of purchase accounting, based primarily on the estimated useful lives of Conrail's depreciable property and equipment, including the related deferred tax effect of the differences in tax accounting bases for such assets, as all of the purchase price at acquisition was allocable to Conrail's tangible assets and liabilities.</p></div> <p align="left">At December 31, 2010, based on the funded status of Conrail's pension plans, NS increased its proportional investment in Conrail by $<font class="_mt">9</font> million.&nbsp;&nbsp;This resulted in income of $<font class="_mt">8</font> million recorded to "other comprehensive income (loss)" and a combined federal and state deferred tax liability of $<font class="_mt">1</font> million.&nbsp;&nbsp;At December 31, 2009, NS' year-end adjustment increased its proportional investment in Conrail by $<font class="_mt">24</font> million.&nbsp;&nbsp;This resulted in income of $<font class="_mt">22</font> million recorded to "other comprehensive income (loss)" and a combined federal and state deferred tax liability of $<font class="_mt">2</font> million.&nbsp;&nbsp;At December 31, 2010, the difference between NS' investment in Conrail and its share of Conrail's underlying net equity was $<font class="_mt">545</font> million.&nbsp;&nbsp;NS' equity in the earnings of Conrail, net of amortization, included in "Other income &ndash; net" was $<font class="_mt">26</font> million, $<font class="_mt">32</font> million, and $<font class="_mt">29</font> million in 2010, 2009, and 2008, respectively.</p> <p align="left">CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of NSR and CSX Transportation, Inc. (CSXT).&nbsp;&nbsp;The costs of operating the Shared Assets Areas are borne by NSR and CSXT based on usage.&nbsp;&nbsp;In addition, NSR and CSXT pay CRC a fee for access to the Shared Assets Areas.&nbsp;&nbsp;"Purchased services and rents" and "Fuel" include expenses for amounts due to CRC for operation of the Shared Assets Areas totaling $<font class="_mt">118</font> million in 2010, $<font class="_mt">123</font> million in 2009, and $<font class="_mt">131</font> million in 2008.&nbsp;&nbsp;Future minimum lease payments due to CRC under the Shared Assets Areas agreements are as follows:&nbsp;&nbsp;$<font class="_mt">30</font> million in each of 2011 through 2015 and $<font class="_mt">257</font> million thereafter.&nbsp;&nbsp;NS provides certain general and administrative support functions to Conrail, the fees for which are billed in accordance with several service-provider arrangements and approximate $<font class="_mt">7</font> million annually.</p> <p align="left">"Accounts payable" includes $<font class="_mt">128</font> million at December 31, 2010, and $<font class="_mt">104</font> million at December 31, 2009, due to Conrail for the operation of the Shared Assets Areas.&nbsp;&nbsp;In addition, "Other liabilities" includes $<font class="_mt">133</font> million at December 31, 2010 and 2009, for long-term advances from Conrail, maturing 2035, that bear interest at an average rate of <font class="_mt">4.4</font>%.</p> <p align="left"><strong>Investment in Pan Am Southern LLC</strong></p> <p align="left">Pan Am Southern LLC (PAS) is a railroad company joint venture in which NS and Pan Am Railways, Inc. (Pan Am) each has a <font class="_mt">50</font>% equity interest.&nbsp;&nbsp;As of December 31, 2010, NS has contributed cash and other property with a combined value of approximately $<font class="_mt">116</font> million and committed to contribute an additional $<font class="_mt">24</font> million in cash over the next two years.&nbsp;&nbsp;A significant portion of NS' contributions has and will continue to be used for capital improvements to the PAS lines and the related construction of new intermodal and automotive terminals.</p></div></div></div></div></div></div></div></div> </div> 500000000 500000000 250000000 42000000 52000000 7000000 0.044 474000000 458000000 0.064 0.0725 0.0711 0.0721 0.0674 0.0588 0.0525 0.0154 0.14 0.07 0.14 0.28 0.19 0.11 0.07 852000000 641000000 757000000 164000000 169000000 <div> <p align="left"><strong>Materials and Supplies</strong> </p> <p align="left">"Materials and supplies," consisting mainly of fuel oil and items for maintenance of property and equipment, are stated at the lower of average cost or market.&nbsp;&nbsp;The cost of materials and supplies expected to be used in capital additions or improvements is included in "Properties."</p> </div> 27000000 170000000 185000000 50000000 11000000 8000000 7000000 60 <div> <table class="excel508" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 116pt; height: 15pt;" class="excel513" width="154"> </td> <td style="width: 20pt;" class="excel509" width="27"> </td> <td style="width: 13pt;" class="excel509" width="17"> </td> <td style="width: 51pt;" class="excel514" width="68">2010</td> <td style="width: 20pt;" class="excel509" width="26"> </td> <td style="width: 13pt;" class="excel509" width="17"> </td> <td style="width: 51pt;" class="excel514" width="68">2009</td> <td style="width: 20pt;" class="excel509" width="26"> </td> <td style="width: 13pt;" class="excel509" width="17"> </td> <td style="width: 51pt;" class="excel514" width="68">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel513"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel518" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel509">Minimum rents</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel510" align="right">159</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel510" align="right">163</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel510" align="right">183</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel509">Contingent rents</td> <td class="excel509"> </td> <td class="excel512"> </td> <td class="excel515" align="right">79</td> <td class="excel509"> </td> <td class="excel512"> </td> <td class="excel510" align="right">65</td> <td class="excel509"> </td> <td class="excel512"> </td> <td class="excel510" align="right">80</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel509">&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel509"> </td> <td class="excel512">$</td> <td style="border-top-style: none;" class="excel516" align="right">238</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel517" align="right">228</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel517" align="right">263</td></tr></table> </div> 20000 <div> <table class="excel621" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel625" width="295">&nbsp;</td> <td style="width: 20pt;" class="excel622" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel622" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel626" width="83"><strong><u>2010</u></strong></td> <td style="width: 20pt;" class="excel622" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel622" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel626" width="83"><strong><u>2009</u></strong></td> <td style="width: 20pt;" class="excel622" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel622" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel626" width="83"><strong><u>2008</u></strong></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel625">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel627" colspan="7">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Expected volatility range</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right"><font class="_mt">29</font>% - <font class="_mt">32</font>%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right"><font class="_mt">28</font>% - <font class="_mt">53</font>%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right"><font class="_mt">25</font>% - <font class="_mt">32</font>%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average expected volatility</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel629" align="right">32%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel629" align="right">43%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel629" align="right">32%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average risk-free interest rate</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">3.63%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">2.87%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">3.68%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average expected option term LTIP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">8.3 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">6.5 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">5.9 years</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Per-share grant-date fair value LTIP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$18.54</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$18.18</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$19.32</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average expected option term TSOP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">8.3 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">9.2 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">8.0 years</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Per-share grant-date fair value TSOP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$14.91</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$15.41</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$16.29</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Options granted (LTIP and TSOP)</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel623" align="right">1,084,700</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel623" align="right">1,460,900</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel624" align="right">1,412,600</td></tr></table> </div> 0 1400000 0 -543000000 -850000000 307000000 89000000 132000000 -43000000 48000000 72000000 -24000000 -61000000 -65000000 4000000 22000000 24000000 -2000000 10000000 11000000 -1000000 22000000 10000000 -111000000 -89000000 -79000000 -44000000 -17000000 45000000 73000000 69000000 -58000000 -139000000 43000000 -6000000 -19000000 -12000000 -0.01 -0.01 1000000 0 1000000 0 <div> <table class="excel568" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 188pt; height: 15pt;" class="excel571" width="251">&nbsp;</td> <td style="width: 20pt;" class="excel569" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel569" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel572" width="68"> <div align="right">2010</div></td> <td style="width: 20pt;" class="excel569" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel569" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel572" width="68"> <div align="right">2009</div></td> <td style="width: 20pt;" class="excel569" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel569" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel572" width="68"> <div align="right">2008</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel571">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel574" colspan="7">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Pension funded status:</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Discount rate</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.25%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Future salary increases</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Other postretirement benefits funded status:</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel573"><font style="height: 15pt;" class="_mt">&nbsp;&nbsp;&nbsp;Discount rate</font></td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.4%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Pension cost:</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Discount rate</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Return on assets in plans</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">8.75%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">8.75%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel580" align="right">9%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Future salary increases</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Other postretirement benefits cost:</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel577">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel577">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel577">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Discount rate</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Return on assets in plans</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">8.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">8.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">8.5%</td></tr></table> </div> -498000000 -812000000 314000000 29000000 47000000 -18000000 -26000000 -42000000 16000000 0.01 0.13 0.23 0.21 0.64 0.54 0.12 0.12 42000000 42000000 48000000 48000000 385000000 100000000 144000000 141000000 385000000 521000000 361000000 0 160000000 521000000 839000000 839000000 963000000 963000000 170000000 170000000 <div> <div class="MetaData" align="left"> <p align="left"><strong>December 31, 2010</strong> </p> <table class="excel601" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 225pt; height: 15pt;" class="excel604" width="251"> </td> <td style="width: 20pt;" class="excel602" width="27"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 1</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 2</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Total</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common stock</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">963</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">963</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common collective trusts</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">521</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">521</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Interest bearing cash</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">220</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">220</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Commingled funds</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">48</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">48</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">U.S. government and agencies securities</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">3</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">3</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Preferred stock</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel607" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel607" align="right">1</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel607" align="right">1</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel602">&nbsp;&nbsp;&nbsp;&nbsp; Total investments</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">1,183</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">573</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">1,756</td></tr></table> <p align="left">&nbsp;</p> <p align="left"><strong>December 31, 2009</strong> </p> <table class="excel601" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 225pt; height: 15pt;" class="excel602" width="251"> </td> <td style="width: 20pt;" class="excel602" width="27"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 1</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 2</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Total</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common stock</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">839</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">839</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common collective trusts</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">385</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">385</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Corporate bonds and other fixed income securities</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606">170</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606">170</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">U.S. government and agencies securities</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">78</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">78</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Commingled funds</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">42</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">42</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Interest bearing cash</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">23</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">23</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Other bonds and securities</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel607" align="right">-</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel607" align="right">5</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel607" align="right">5</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel602">&nbsp;&nbsp;&nbsp;&nbsp; Total investments</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">862</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">680</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">1,542</td></tr></table></div> </div> 23000000 23000000 220000000 220000000 5000000 5000000 1000000 1000000 1542000000 862000000 680000000 1756000000 1183000000 573000000 78000000 78000000 3000000 3000000 <div> <table class="excel589" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 206pt; height: 15pt;" class="excel590" width="274"> </td> <td style="width: 20pt;" class="excel590" width="27"> </td> <td style="width: 13pt;" class="excel594" width="17"> </td> <td style="width: 160pt;" class="excel594" width="214" colspan="4">Percentage of plan</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel592"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel594" colspan="4">assets at December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel596">&nbsp;</td> <td class="excel595"> </td> <td class="excel595"> </td> <td class="excel593">2010</td> <td class="excel595"> </td> <td class="excel595"> </td> <td class="excel593">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">Domestic equity securities</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">54%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">64%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">International equity securities</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">12%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">12%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">Debt securities</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">21%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">23%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">Cash and cash equivalents</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel598" align="right">13%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel598" align="right">1%</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel590">&nbsp;&nbsp; Total</td> <td class="excel590"> </td> <td class="excel591"> </td> <td style="border-top-style: none;" class="excel599" align="right">100%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td style="border-top-style: none;" class="excel599" align="right">100%</td></tr></table> </div> -9000 -426034 -425859 -310307 137000000 51000000 55000000 <div> <table class="excel339" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 170pt; height: 15pt;" class="excel342" width="227"> </td> <td style="width: 20pt;" class="excel340" width="27"> </td> <td style="width: 13pt;" class="excel340" width="17"> </td> <td style="width: 64pt;" class="excel343" width="85">2010</td> <td style="width: 35pt;" class="excel340" width="47"> </td> <td style="width: 13pt;" class="excel340" width="17"> </td> <td style="width: 64pt;" class="excel343" width="85">2009</td> <td style="width: 35pt;" class="excel340" width="47"> </td> <td style="width: 13pt;" class="excel340" width="17"> </td> <td style="width: 64pt;" class="excel343" width="85">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel342"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel343"> </td> <td class="excel348" colspan="5">($ in millions)</td> <td class="excel343"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel342"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel343"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel343"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">Current:</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; Federal</td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel344" align="right">492</td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel344" align="right">239 </td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel344" align="right">657 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; State</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">67</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">11 </td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">87 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current taxes</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344" align="right">559</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344" align="right">250 </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344" align="right">744 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">Deferred:</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; Federal</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel344" align="right">281</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel344" align="right">289 </td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel344" align="right">257 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; State</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">31</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">49 </td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">33 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred taxes</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel345" align="right">312</td> <td class="excel340"> </td> <td class="excel340"> </td> <td style="border-top-style: none;" class="excel346" align="right">338 </td> <td class="excel340"> </td> <td class="excel340"> </td> <td style="border-top-style: none;" class="excel346" align="right">290 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel340">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes</td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel361" align="right">871 </td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel361" align="right">588 </td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel361" align="right">1,034 </td></tr></table> </div> 1599000000 1403000000 1477000000 <div> <table border="0" width="745"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td colspan="9"> <p align="center"><strong>NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES<br />QUARTERLY FINANCIAL DATA<br />(Unaudited)</strong></p></td></tr> <tr><td width="243">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td></tr> <tr><td>&nbsp;</td> <td colspan="8"> <div align="center"><strong>Three Months Ended</strong></div></td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td> <div align="center"><strong><u>March 31</u></strong></div></td> <td>&nbsp;</td> <td> <div align="center"><strong><u>June 30</u></strong></div></td> <td>&nbsp;</td> <td> <div align="center"><strong><u>September 30</u></strong></div></td> <td>&nbsp;</td> <td> <div align="center"><strong><u>December 31</u></strong></div></td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="7"> <div align="center"><em>($ in millions, except per share amounts )</em></div></td></tr> <tr><td><strong><u>2010</u></strong></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>Railway operating revenues</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,238</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,430</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,456</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,392</div></td></tr> <tr><td>Income from railway operations</td> <td>&nbsp;</td> <td> <div align="right">555</div></td> <td>&nbsp;</td> <td> <div align="right">733</div></td> <td>&nbsp;</td> <td> <div align="right">746</div></td> <td>&nbsp;</td> <td> <div align="right">642</div></td></tr> <tr><td>Net income</td> <td>&nbsp;</td> <td> <div align="right">257</div></td> <td>&nbsp;</td> <td> <div align="right">392</div></td> <td>&nbsp;</td> <td> <div align="right">445</div></td> <td>&nbsp;</td> <td> <div align="right">402</div></td></tr> <tr><td> <p>Earnings per share:</p></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.69</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.06</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11</div></td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.68</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.04</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.09</div></td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td><strong><u>2009</u></strong></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>Railway operating revenues</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,943</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,857</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,063</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,106</div></td></tr> <tr><td>Income from railway operations</td> <td>&nbsp;</td> <td> <div align="right">383</div></td> <td>&nbsp;</td> <td> <div align="right">468</div></td> <td>&nbsp;</td> <td> <div align="right">562</div></td> <td>&nbsp;</td> <td> <div align="right">549</div></td></tr> <tr><td>Net income</td> <td>&nbsp;</td> <td> <div align="right">177</div></td> <td>&nbsp;</td> <td> <div align="right">247</div></td> <td>&nbsp;</td> <td> <div align="right">303</div></td> <td>&nbsp;</td> <td> <div align="right">307</div></td></tr> <tr><td>Earnings per share:</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.67</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.82</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.83</div></td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.47</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.66</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.81</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.82</div></td></tr></table> </div> 243000000 157000000 16000000 27000000 -11000000 38000000 61000000 -23000000 64000000 103000000 -39000000 <div> <table class="excel381" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 156pt; height: 15pt;" class="excel392" width="208"> </td> <td style="width: 10pt;" class="excel397" width="13"> </td> <td style="width: 102pt;" class="excel403" width="136" colspan="4">2010</td> <td style="width: 29pt;" class="excel403" width="39"> </td> <td style="width: 10pt;" class="excel392" width="13"> </td> <td style="width: 102pt;" class="excel403" width="136" colspan="4">2009</td> <td style="width: 29pt;" class="excel403" width="39"> </td> <td style="width: 10pt;" class="excel392" width="13"> </td> <td style="width: 102pt;" class="excel403" width="136" colspan="4">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">Amount</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">%</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">Amount</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">%</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">Amount</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">%</td></tr> <tr style="height: 13.5pt;"><td style="height: 13.5pt;" class="excel392"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel392"> </td> <td class="excel408"> </td> <td class="excel404" colspan="4">($ in millions)</td> <td class="excel408"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel404"> </td> <td class="excel404"> </td> <td class="excel404"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Federal income tax at</td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">&nbsp; statutory rate</td> <td class="excel393">$</td> <td class="excel395" align="right">828&nbsp;</td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395" align="right">35&nbsp;</td> <td class="excel393"> </td> <td class="excel393">$</td> <td class="excel395" align="right">568&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395" align="right">35&nbsp; </td> <td class="excel392"> </td> <td class="excel393">$</td> <td class="excel395" align="right">963&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395" align="right">35 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">State income taxes, net of</td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel393"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">&nbsp; federal tax effect</td> <td class="excel392"> </td> <td class="excel395" align="right">62&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">3&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">39&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">2&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">77&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">3 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Deferred tax estimate</td> <td class="excel392"> </td> <td class="excel395" align="right">(34)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">(1)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Medicare Part D</td> <td class="excel392"> </td> <td class="excel395" align="right">27&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">1&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Other, net</td> <td class="excel392"> </td> <td class="excel396" align="right">(12)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(1)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(19)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(1)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(6)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel392">&nbsp;&nbsp;&nbsp; Provision for income taxes</td> <td class="excel393">$</td> <td class="excel401" align="right">871&nbsp;</td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel401" align="right">37&nbsp;</td> <td class="excel393"> </td> <td class="excel393">$</td> <td class="excel401" align="right">588&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel401" align="right">36&nbsp;</td> <td class="excel392"> </td> <td class="excel393">$</td> <td class="excel401" align="right">1,034&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel401" align="right">38 </td></tr></table> </div> <div> <div class="MetaData"> <p align="left"><strong>Required Accounting Changes</strong> </p> <div> <p align="left">In June 2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 168, "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, a replacement of FASB Statement No. 162" (Accounting Standards Update (ASU) 2009-01).&nbsp;&nbsp;This statement, effective for interim and annual periods ending after September 15, 2009, established the FASB Accounting Standards Codification (Codification or ASC) as the single source of authoritative Generally Accepted Accounting Principles (GAAP).&nbsp;&nbsp;SFAS 168 is recognized by the FASB to be applied by nongovernmental entities and stated that all guidance contained in the Codification has an equal level of authority.&nbsp;&nbsp;The authoritative accounting guidance recognized that rules and interpretive releases of the Securities and Exchange Commission (SEC) under federal securities laws are also sources of authoritative GAAP for SEC registrants.&nbsp;&nbsp;NS adopted the provisions of the authoritative accounting guidance for the interim reporting period ending September 30, 2009, the adoption of which did not have a material effect on NS' consolidated financial statements.</p> <p align="left">FASB Staff Position (FSP) No. 132 (R)-1, "Employers' Disclosures about Postretirement Benefit Plan Assets" (ASC 715-20-65-2), was issued on December 30, 2008.&nbsp;&nbsp;The FSP, effective for fiscal years ending after December 15, 2009, clarifies an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan.&nbsp;&nbsp;The FSP prescribes expanded disclosures regarding investment allocation decisions, categories of plan assets, inputs, and valuation techniques used to measure fair value, the effect of Level 3 inputs on changes in plan assets and significant concentrations of risk.&nbsp;&nbsp;NS adopted the FSP at the end of 2009 and it did not have a material effect on NS' consolidated financial statements.</p> <p align="left">Effective January 1, 2008, NS adopted SFAS No. 157, "Fair Value Measurements" (ASC 820), related to financial instrument assets and liabilities.&nbsp;&nbsp;NS adopted the provisions of this standard relative to nonfinancial assets and nonfinancial liabilities that are not remeasured at fair value on a recurring basis in the first quarter of 2009.&nbsp;&nbsp;This statement, effective for interim or annual reporting periods beginning after November 15, 2007, establishes a framework for measuring fair value in U.S. generally accepted accounting principles and expands disclosures about fair value measurements.&nbsp;&nbsp;Adoption did not have a material effect on NS' consolidated financial statements.</p> <p align="left">In December 2007, the FASB issued SFAS No. 160 (SFAS 160), "Noncontrolling Interests in Consolidated Financial Statements" (ASC 810-10), which requires that noncontrolling (minority) interests be reported as a component of equity.&nbsp;&nbsp;NS adopted the statement in the first quarter of 2009 with no material effect on NS' consolidated financial statements.</p> <p align="left">In June 2008, the FASB issued FSP Emerging Issues Task Force (EITF) 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities" (ASC 260-10).&nbsp;&nbsp;This FSP addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method as described in SFAS No. 128, "Earnings per Share" (ASC 260-10).&nbsp;&nbsp;NS adopted the FSP, which affects the calculation of earnings per share, in the first quarter of 2009.&nbsp;&nbsp;The provisions of the FSP were applied retrospectively, but did not have a material effect on NS' consolidated financial statements.</p></div></div> </div> 5 5 5 65000000 67000000 829000000 849000000 <div> <table class="excel470" border="0" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 180pt; height: 15pt;" class="excel471" width="240"> </td> <td style="width: 20pt;" class="excel471" width="27"> </td> <td style="width: 13pt;" class="excel480" width="17"> </td> <td style="width: 180pt;" class="excel480" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel473"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel474">2010</td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel474">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel473"> </td> <td class="excel481"> </td> <td class="excel481"> </td> <td class="excel481" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">Accounts payable:</td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Accounts and wages payable</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">572</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">417 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Casualty and other claims (Note 17)</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">254</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">233 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Due to Conrail (Note 5)</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">128</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">104 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Vacation liability</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">122</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">123 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Equipment rents payable &ndash; net</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">80</td> <td class="excel47"> </td> <td class="excel472"> </td> <td class="excel475" align="right">75 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Other</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel476" align="right">25</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel476" align="right">22 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel471">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel471"> </td> <td class="excel472">$</td> <td style="border-top-style: none;" class="excel477" align="right">1,181</td> <td class="excel471"> </td> <td class="excel472">$</td> <td style="border-top-style: none;" class="excel477" align="right">974 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel471"> </td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">Other current liabilities:</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Interest payable</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">108</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">106 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Retiree benefit obligations (Note 11)</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">67</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">65 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Liabilities for forwarded traffic</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">52</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">42 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Other</td> <td class="excel471"> </td> <td class="excel472"> </td> <td style="border-top-style: none;" class="excel478" align="right">17</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel476" align="right">19 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel471">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel479" align="right">244</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel479" align="right">232 </td></tr></table> </div> <div> <table class="excel547" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 168pt; height: 15pt;" class="excel550" width="224">&nbsp;</td> <td style="width: 20pt;" class="excel548" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel548" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel551" width="68">2010</td> <td style="width: 20pt;" class="excel548" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel548" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel551" width="68">2009</td> <td style="width: 20pt;" class="excel548" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel548" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel551" width="68">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel550">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel555" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel556">Pension benefits</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Service cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">26&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">26&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">25&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Interest cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">96&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">101&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">99&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Expected return on plan assets</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(142)</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(154) </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(173) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of net losses</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">48&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">25&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">7&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of prior service cost </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel553" align="right">3&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">3&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">3&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="MetaData">&nbsp;&nbsp;&nbsp;&nbsp; Net cost (benefit)</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">31&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">1&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">(39)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel552">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel552">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel552">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel556">Other postretirement benefits</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Service cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">16&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">16&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">16&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548"><font style="height: 15pt;" class="_mt">Interest cost</font></td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">61&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">57&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">51&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Expected return on plan assets</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(15)</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(15)</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(15)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of net losses</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">52&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">35&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">25&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of prior service cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel553" align="right">-&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(2) </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(8) </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel548">&nbsp;&nbsp;&nbsp;&nbsp; Net cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">114&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">91&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">69&nbsp; </td></tr></table> </div> <div> <table class="excel557" cellspacing="0" cellpadding="0"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="height: 15pt;"><td style="width: 280pt; height: 15pt;" class="excel558" width="375">&nbsp;</td> <td style="width: 20pt;" class="excel558" width="29">&nbsp;</td> <td style="width: 13pt;" class="excel566" width="19">&nbsp;</td> <td style="width: 208pt;" class="excel566" colspan="4"><u>2010</u></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel566">&nbsp;</td> <td class="excel566" width="122">&nbsp;</td> <td class="excel566" width="9">&nbsp;</td> <td class="excel566" width="22">&nbsp;</td> <td class="excel566" width="121">Other</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel566">&nbsp;</td> <td class="excel566">Pension</td> <td class="excel566">&nbsp;</td> <td class="excel566">&nbsp;</td> <td class="excel566">Postretirement</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel560">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel561">Benefits</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel561">Benefits</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel560">&nbsp;</td> <td class="excel567">&nbsp;</td> <td class="excel567">&nbsp;</td> <td class="excel567" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">Net loss arising during the year</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel562" align="right">34&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel562" align="right">8&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">Amortization of net losses</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562" align="right">(48)</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562" align="right">(52)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">Amortization of prior service cost</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel563" align="right">(3)</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel563" align="right">-&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel558">&nbsp;&nbsp; Total recognized in other comprehensive income</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel564" align="right">(17)</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel564" align="right">(44)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel558">&nbsp;&nbsp; Total recognized in net periodic cost</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562">&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel558">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and other comprehensive income</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel565" align="right">14&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel565" align="right">70&nbsp;</td></tr></table> </div> <div> <table cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 294pt; height: 15pt;" width="392"> </td> <td style="width: 25pt;" width="33"> </td> <td style="width: 73pt;" width="97"> </td> <td style="width: 25pt;" width="97"> </td> <td>&nbsp; Tax </td> <td style="width: 25pt;" width="33"> </td> <td style="width: 73pt;" width="97"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; Pretax </td> <td>&nbsp; </td> <td>&nbsp; (Expense) </td> <td>&nbsp; </td> <td>&nbsp; Net-of-Tax </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; <u>Amount</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>Benefit</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>Amount</u> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td> <div align="center"><i>($ in millions)</i></div></td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><strong><i>Year ended December 31, 2010</i></strong> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Net gain (loss) arising during the year: </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;<font style="height: 15pt;" class="_mt"> Pensions and other postretirement benefits</font> </td> <td>&nbsp; $ </td> <td>&nbsp; (42) </td> <td>&nbsp; $ </td> <td>&nbsp; 16&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (26) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Reclassification adjustments for costs </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income </td> <td>&nbsp; </td> <td>&nbsp; 103 </td> <td>&nbsp; </td> <td>&nbsp; (39) </td> <td>&nbsp; </td> <td>&nbsp; 64 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal </td> <td>&nbsp; </td> <td>&nbsp; 61 </td> <td>&nbsp; </td> <td>&nbsp; (23) </td> <td>&nbsp; </td> <td>&nbsp; 38 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; 11 </td> <td>&nbsp; </td> <td>&nbsp; (1) </td> <td>&nbsp; </td> <td>&nbsp; 10 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) </td> <td>&nbsp; $ </td> <td>&nbsp; 72 </td> <td>&nbsp; $ </td> <td>&nbsp; (24) </td> <td>&nbsp; $ </td> <td>&nbsp; 48 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><strong><i>Year ended December 31, 2009</i></strong> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Net gain (loss) arising during the year: </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;<font style="height: 15pt;" class="_mt"> &nbsp;Pensions and other postretirement benefits</font> </td> <td>&nbsp; $ </td> <td>&nbsp; 47 </td> <td>&nbsp; $ </td> <td>&nbsp; (18) </td> <td>&nbsp; $ </td> <td>&nbsp; 29 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Reclassification adjustments for costs </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income </td> <td>&nbsp; </td> <td>&nbsp; 61 </td> <td>&nbsp; </td> <td>&nbsp; (23) </td> <td>&nbsp; </td> <td>&nbsp; 38 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal </td> <td>&nbsp; </td> <td>&nbsp; 108 </td> <td>&nbsp; </td> <td>&nbsp; (41) </td> <td>&nbsp; </td> <td>&nbsp; 67 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; 24 </td> <td>&nbsp; </td> <td>&nbsp; (2) </td> <td>&nbsp; </td> <td>&nbsp; 22 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) </td> <td>&nbsp; $ </td> <td>&nbsp; 132 </td> <td>&nbsp; $ </td> <td>&nbsp; (43) </td> <td>&nbsp; $ </td> <td>&nbsp; 89 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><strong><i>Year ended December 31, 2008</i></strong> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Net gain (loss) arising during the year: </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;<font style="height: 15pt;" class="_mt">&nbsp; Pensions and other postretirement benefits</font> </td> <td>&nbsp; $ </td> <td>&nbsp; (812) </td> <td>&nbsp; $ </td> <td>&nbsp; 314 </td> <td>&nbsp; $ </td> <td>&nbsp; (498) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Reclassification adjustments for costs </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income </td> <td>&nbsp; </td> <td>&nbsp; 27 </td> <td>&nbsp; </td> <td>&nbsp; (11) </td> <td>&nbsp; </td> <td>&nbsp; 16 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal </td> <td>&nbsp; </td> <td>&nbsp; (785) </td> <td>&nbsp; </td> <td>&nbsp; 303&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; (482) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; (65) </td> <td>&nbsp; </td> <td>&nbsp; 4 </td> <td>&nbsp; </td> <td>&nbsp; (61) </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) </td> <td>&nbsp; $ </td> <td>&nbsp; (850) </td> <td>&nbsp; $ </td> <td>&nbsp; 307&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (543) </td></tr></table> </div> <div> <table class="excel519" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 280pt; height: 15pt;" class="excel520" width="373"> </td> <td style="width: 20pt;" class="excel520" width="27"> </td> <td style="width: 13pt;" class="excel528" width="17"> </td> <td style="width: 180pt;" class="excel528" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel522"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel523">2010</td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel523">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel522"> </td> <td class="excel529"> </td> <td class="excel529"> </td> <td class="excel529" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Retiree health and death benefit obligations (Note 11)</td> <td class="excel520"> </td> <td class="excel521">$</td> <td class="excel524" align="right">849</td> <td class="excel520"> </td> <td class="excel521">$</td> <td class="excel524" align="right">829 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Casualty and other claims (Note 17)</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">261</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">265 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Net pension obligations (Note 11)</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">185</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">170 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Long-term advances from Conrail (Note 5)</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">133</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">133 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Deferred compensation</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">124</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">130 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Federal and state income taxes</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">82</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">94 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Other</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel525" align="right">159</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel525" align="right">180 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel520">&nbsp; &nbsp;&nbsp;&nbsp;Total</td> <td class="excel520"> </td> <td class="excel521">$</td> <td style="border-top-style: none;" class="excel526" align="right">1,793</td> <td class="excel520"> </td> <td class="excel521">$</td> <td style="border-top-style: none;" class="excel526" align="right">1,801 </td></tr></table> </div> <div> <table class="excel311" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 267pt; height: 15pt;" class="excel314" width="356"> </td> <td style="width: 20pt;" class="excel312" width="27"> </td> <td style="width: 13pt;" class="excel312" width="17"> </td> <td style="width: 64pt;" class="excel315" width="85">2010</td> <td style="width: 35pt;" class="excel312" width="47"> </td> <td style="width: 13pt;" class="excel312" width="17"> </td> <td style="width: 64pt;" class="excel315" width="85">2009</td> <td style="width: 35pt;" class="excel312" width="47"> </td> <td style="width: 13pt;" class="excel312" width="17"> </td> <td style="width: 64pt;" class="excel315" width="85">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel314"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel315"> </td> <td class="excel321" colspan="5">($ in millions)</td> <td class="excel315"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel314"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel315"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel315"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Income from natural resources:</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">&nbsp;&nbsp; Royalties from coal</td> <td class="excel312"> </td> <td class="excel313">$</td> <td class="excel316" align="right">80&nbsp;</td> <td class="excel312"> </td> <td class="excel313">$</td> <td class="excel316" align="right">67&nbsp; </td> <td class="excel312"> </td> <td class="excel313">$</td> <td class="excel316" align="right">64&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">&nbsp;&nbsp; Nonoperating depletion and depreciation</td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel317" align="right">(7)</td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel317" align="right">(8)</td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel317" align="right">(11)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">73&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">59&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">53&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312"> </td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel316"> </td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel316"> </td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel316"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Rental income</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">47&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">47&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">47&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="MetaData">Gains and losses from sale of properties</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">41&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">18&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">29&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Equity in earnings of Conrail Inc. (Note 5)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">26&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">32&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">29&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Interest income</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">12&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">13&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">20&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Corporate-owned life insurance net</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">1&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">1&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(31)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Taxes on nonoperating property</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">(10)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(10)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(10)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Other interest expense net</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">(16)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(5)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">2&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="MetaData">Other</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel320" align="right">(21)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel320" align="right">(28)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel320" align="right">(29)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel312">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel312"> </td> <td class="excel313">$</td> <td style="border-top-style: none;" class="excel338" align="right">153&nbsp; </td> <td class="excel312"> </td> <td class="excel313">$</td> <td style="border-top-style: none;" class="excel338" align="right">127&nbsp; </td> <td class="excel312"> </td> <td class="excel313">$</td> <td style="border-top-style: none;" class="excel338" align="right">110&nbsp; </td></tr></table> </div> <div> <table class="excel530" border="0" cellspacing="0" cellpadding="0"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel531" width="297">&nbsp;</td> <td style="width: 10pt;" class="excel531" width="15">&nbsp;</td> <td style="width: 56pt;" class="excel531" width="77">&nbsp;</td> <td style="width: 14pt;" class="excel531" width="21">&nbsp;</td> <td style="width: 10pt;" class="excel531" width="15">&nbsp;</td> <td style="width: 56pt;" class="excel531" width="77">&nbsp;</td> <td style="width: 29pt;" class="excel531" width="41">&nbsp;</td> <td style="width: 10pt;" class="excel531" width="15">&nbsp;</td> <td class="excel541" colspan="4">Other Postretirement</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel536">&nbsp;</td> <td class="excel541" colspan="4">Pension Benefits</td> <td class="excel541">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel541" colspan="4">Benefits</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel533">2010</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel533">2009</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel533" width="81">2010</td> <td class="excel531" width="27">&nbsp;</td> <td class="excel531" width="31">&nbsp;</td> <td class="excel533" width="81">2009</td></tr> <tr style="height: 13.5pt;"><td style="height: 13.5pt;" class="excel531">&nbsp;</td> <td class="excel545">&nbsp;</td> <td class="excel542" colspan="10">($ in millions)</td></tr> <tr style="height: 13.5pt;"><td style="height: 13.5pt;" class="excel531">&nbsp;</td> <td class="excel545">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel546">Change in benefit obligations</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Benefit obligation at beginning of year</td> <td class="excel532">$</td> <td class="excel534" align="right">1,696&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">1,670&nbsp; </td> <td class="excel532">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">1,044&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">920&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Service cost</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">26&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">26&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">16&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">16&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Interest cost</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">96&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">101&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">61&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">57&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Actuarial losses</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">108&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">8&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">10&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">106&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Benefits paid</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(113)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(109)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(49)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(55)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit obligation at end of year</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,813&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,696&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,082&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,044&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel546">Change in plan assets</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Fair value of plan assets at beginning of year</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">1,542&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">1,333&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">161&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">138&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Actual return on plan assets</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">216&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">307&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">17&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">23&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Employer contribution</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">111&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">11&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">49&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">55&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Benefits paid</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(113)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(109)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(49)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(55)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets at end of year</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,756&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,542&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">178&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">161&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel536">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funded status at end of year</td> <td class="excel532">$</td> <td class="excel544" align="right">(57)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(154)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(904)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(883)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Amounts recognized in the Consolidated</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp; Balance Sheets consist of:</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Noncurrent assets</td> <td class="excel532">$</td> <td class="excel534" align="right">140&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">27&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">(12)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">(11)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">(55)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">(54)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Noncurrent liabilities</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(185)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(170)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(849)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(829)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel536">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amount recognized</td> <td class="excel532">$</td> <td class="excel544" align="right">(57)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(154)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(904)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(883)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Amounts recognized in accumulated other</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp; comprehensive loss (pretax) consist of:</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Net loss</td> <td class="excel532">$</td> <td class="excel534" align="right">807&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">821&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">370&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel539" align="right">414&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Prior service cost</td> <td class="excel532">$</td> <td class="excel534" align="right">7&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel539" align="right">10&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-&nbsp;</td></tr></table> </div> <div> <div class="MetaData"> <table style="line-height: 115%; width: 695.25pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormalTable" border="0" cellpadding="0" width="927"> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 225pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="300"> </td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" colspan="14"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><u><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Additions charged to:</font></u></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Beginning<br /><u>Balance</u></font></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><u><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Expenses</font></u></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Other<br /><u>Accounts</u></font></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><u><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Deductions</font></u></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Ending<br /><u>Balance</u></font></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><i><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Year ended December 31, 2008</font></i></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"><br />Valuation allowance (included net in<br />&nbsp;&nbsp;&nbsp;deferred tax liability) for deferred<br />&nbsp;&nbsp;&nbsp;tax assets</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">10</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">1</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">11</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Casualty and other claims<br />&nbsp;&nbsp;&nbsp;included in other liabilities</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">588</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">84</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">80^2,3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">432²</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">320</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Current portion of casualty and<br />&nbsp;&nbsp;&nbsp;other claims included in<br />&nbsp;&nbsp;&nbsp;accounts payable</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">259</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">28</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">127¹</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">166³</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">248</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><i><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Year ended December 31, 2009</font></i></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"><br />Valuation allowance (included net in<br />&nbsp;&nbsp;&nbsp;deferred tax liability) for deferred<br />&nbsp;&nbsp;&nbsp;tax assets</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">11</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">14</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Casualty and other claims<br />&nbsp;&nbsp;&nbsp;included in other liabilities</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">320</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">58</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">4^2,3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">117²</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">265</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Current portion of casualty and<br />&nbsp;&nbsp;&nbsp;other claims included in<br />&nbsp;&nbsp;&nbsp;accounts payable</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">248</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">115¹</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">133³</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">233</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><i><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Year ended December 31, 2010</font></i></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"><br />Valuation allowance (included net in<br />&nbsp;&nbsp;&nbsp;deferred tax liability) for deferred<br />&nbsp;&nbsp;&nbsp;tax assets</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">14</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">7</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">21</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Casualty and other claims<br />&nbsp;&nbsp;&nbsp;included in other liabilities</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">265</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">87</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">91²</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">261</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Current portion of casualty and<br />&nbsp;&nbsp;&nbsp;other claims included in<br />&nbsp;&nbsp;&nbsp;accounts payable</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">233</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">13</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">150¹</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">142³</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">254</font></p></td></tr></table> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">^{<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">1</font>}<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Includes revenue refunds and overcharges provided through deductions from operating revenues and transfers from other accounts.</font></p> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">^{<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">2</font>}<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Payments and reclassifications to/from accounts payable.</font></p> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">^{<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">3</font>}<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Payments and reclassifications to/from other liabilities.</font></p></div> </div> 15000000 16000000 15000000 1000000000 50000000 175000000 25000000 100000000 89000000 60000000 67000000 286710 0.0229 0.024 0.0289 0.32 0.53 0.32 0.25 0.28 0.29 19.32 16.29 18.18 15.41 18.54 14.91 0.32 0.43 0.32 30000000 18000000 21000000 6837414 2042420 4136591 2145356 10551253 1891556 5569683 642538 2192764 489945 2901786 57800 96125000 50.74 38.71 47.76 79400000 4100000000 <div> <font style="font-size: 11pt;" class="_mt"> </font> <div> <div> <div><font style="font-size: 11pt;" class="_mt"> </font> <div><font style="font-size: 11pt;" class="_mt"> </font> <div><font style="font-size: 11pt;" class="_mt"> </font> <div> <div> <div align="left"> <p align="left"><strong>14.&nbsp;&nbsp;Stock Repurchase Program</strong></p> <p align="left">In November 2010, NS completed the share repurchase program approved by its Board of Directors in November 2005 (as amended in March 2007), pursuant to which NS repurchased a total of&nbsp;<font class="_mt">75</font> million shares of its Common Stock (the "2005 Program").&nbsp;&nbsp;On July 27, 2010, NS' Board of Directors authorized the repurchase of up to an additional&nbsp;<font class="_mt">50</font> million shares of Common Stock through December 31, 2014.&nbsp;&nbsp;The timing and volume of purchases is guided by management's assessment of market conditions and other pertinent facts.&nbsp;&nbsp;Any near-term share repurchases are expected to be made with internally generated cash or proceeds from borrowings.&nbsp;&nbsp;NS repurchased and retired&nbsp;<font class="_mt">14.7</font> million shares, zero shares, and&nbsp;<font class="_mt">19.4</font> million shares of its Common Stock under this program in 2010, 2009, and 2008, respectively, at a cost of $<font class="_mt">863</font> million, zero, and $<font class="_mt">1.1</font> billion, respectively.&nbsp;&nbsp;Since inception of the 2005 Program, NS has repurchased and retired&nbsp;<font class="_mt">79.4</font> million shares of Common Stock at a total cost of $<font class="_mt">4.1</font> billion.</p></div></div></div></div></div></div></div></div> </div> 75000000 <div> <table class="excel690" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel691" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel691" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel691" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel691" width="107">&nbsp;</td> <td style="width: 35pt;" class="excel691" width="47">&nbsp;</td> <td style="width: 13pt;" class="excel691" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel699" width="107"> <div align="center"><strong>Weighted - Average</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel703"> <div align="center"><strong>Performance</strong></div></td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel699"> <div align="center"><strong>Grant-Date</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel693">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel697"> <div align="center"><strong><u>Share Units</u></strong></div></td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel694"> <div align="center"><strong><u>Fair Value</u></strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel693">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Balance December 31, 2009</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">3,531,000&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel692">$</td> <td class="excel704"> <div align="center">46.14 </div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Granted</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">824,900&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel705"> <div align="center">47.76</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Earned &ndash; paid in Common Stock</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">(425,859)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">49.56</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Earned &ndash; paid in cash</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">(426,034)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">49.56</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Unearned</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">(310,307)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">49.56</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Forfeited</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel607" align="right">(9,000)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">45.36</div></td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel702">&nbsp;&nbsp; Balance December 31, 2010</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel609" align="right">3,184,700&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel692">$</td> <td class="excel706"> <div align="center">45.31</div></td></tr></table> </div> <div> <table class="excel674" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel675" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel675" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel675" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel675" width="107">&nbsp;</td> <td style="width: 35pt;" class="excel675" width="47">&nbsp;</td> <td style="width: 80pt;" class="excel675" width="107">&nbsp;</td> <td style="width: 35pt;" class="excel675" width="47">&nbsp;</td> <td style="width: 13pt;" class="excel675" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel682" width="107"> <div align="center"><strong>Weighted - Average</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel686">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel686">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel682"> <div align="center"><strong>Grant-Date</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel677">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel678"> <div align="center"><u><strong>Units</strong></u></div></td> <td class="excel675">&nbsp;</td> <td class="excel678"> <div align="center"><u><strong>Shares</strong></u></div></td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel678"> <div align="center"><u><strong>Fair Value</strong></u></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel677">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Nonvested at December 31, 2009</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel10" align="right">1,218,960&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel10" align="right">433,236&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel676">$</td> <td class="excel687"> <div align="center">40.94 </div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Granted</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel10" align="right">168,250&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel10" align="right">-&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel687"> <div align="center">47.76</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Vested</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel10" align="right">(286,710)</td> <td class="excel675">&nbsp;</td> <td class="excel10" align="right">(433,236)</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel687"> <div align="center">34.10</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Forfeited</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel607" align="right">(2,500)</td> <td class="excel675">&nbsp;</td> <td class="excel607" align="right">-&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel687"> <div align="center">46.49</div></td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel685">&nbsp;&nbsp; Nonvested at December 31, 2010</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel609" align="right">1,098,000&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel609" align="right">-&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel676">$</td> <td class="excel689"> <div align="center">40.94</div></td></tr></table> </div> <div> <table class="excel707" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel712" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel708" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel708" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel713" width="107"> <div align="center"><u><strong>2010</strong></u></div></td> <td style="width: 35pt;" class="excel708" width="47">&nbsp;</td> <td style="width: 80pt;" class="excel713" width="107"> <div align="center"><u><strong>2009</strong></u></div></td> <td style="width: 35pt;" class="excel708" width="47">&nbsp;</td> <td style="width: 80pt;" class="excel713" width="107"> <div align="center"><u><strong>2008</strong></u></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel716">Available for future grants:</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; LTIP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">10,551,253</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">4,136,591</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">6,837,414</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; TSOP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">1,891,556</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">2,145,356</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">2,042,420</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">Shares of Common Stock issued:</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel628">&nbsp;</td> <td class="excel708">&nbsp;</td> <td class="excel628">&nbsp;</td> <td class="excel708">&nbsp;</td> <td class="excel628">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; LTIP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">2,901,786</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">2,192,764</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">5,569,683</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; TSOP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">57,800</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">489,945</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">642,538</td></tr></table> </div> <div> <table class="excel650" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel653" width="295">&nbsp;</td> <td style="width: 20pt;" class="excel651" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel651" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel654" width="83"> <div align="center"><u><strong>2010</strong></u></div></td> <td style="width: 20pt;" class="excel651" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel651" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel654" width="83"> <div align="center"><strong><u>2009</u></strong></div></td> <td style="width: 20pt;" class="excel651" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel651" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel654" width="83"> <div align="center"><strong><u>2008</u></strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel653">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel657" colspan="7"> <div align="center"><em>($ in millions)</em></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel653">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Options exercised</td> <td class="excel651">&nbsp;</td> <td class="excel652">&nbsp;</td> <td class="excel10">2,533,727</td> <td class="excel651">&nbsp;</td> <td class="excel652">&nbsp;</td> <td class="excel10">2,190,947</td> <td class="excel651">&nbsp;</td> <td class="excel652">&nbsp;</td> <td class="excel10">5,697,049</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Total intrinsic value</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">91</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">48</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">208</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Cash received upon exercise of options</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">55</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">51</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">137</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Related excess tax benefits realized</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">32</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">18</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">73</td></tr></table> </div> <div> <table class="excel659" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel660" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel660" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel660" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel673" width="107"> <div align="right"><strong>Option&nbsp;&nbsp;&nbsp;&nbsp;</strong></div></td> <td style="width: 35pt;" class="excel660" width="47">&nbsp;</td> <td style="width: 13pt;" class="excel660" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel673" width="107"> <div align="right"><strong>Weighted Avg.</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel662">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel673"> <div align="right"><u><strong>Shares</strong></u>&nbsp;&nbsp;&nbsp;&nbsp;</div></td> <td class="excel660">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel666"> <div align="right"><strong><u>Exercise Price</u></strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel662">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Outstanding at December 31, 2009</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10" align="right">13,198,140&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">$</td> <td class="excel10">32.95&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Granted</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10" align="right">1,084,700&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10">47.76&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Exercised</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10" align="right">(2,533,727)</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10">22.51&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Forfeited</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel14" align="right">(14,000)</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10">45.80&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel669">&nbsp;&nbsp; Outstanding at December 31, 2010</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel502" align="right">11,735,113&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel661">$</td> <td class="excel10">36.55&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel669">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel628">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel628">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel660">Exercisable at December 31, 2010</td> <td class="excel660">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel10" align="right">8,208,413&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">$</td> <td class="excel10">32.74&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr></table> </div> 76000000 15000000 33000000 10000000 10000000 10000000 7153000000 7025000000 -482000000 -785000000 303000000 67000000 108000000 -41000000 38000000 61000000 -23000000 161000000 178000000 34000000 7000000 29000000 <div> <table class="excel423" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 284pt; height: 15pt;" class="excel424" width="378"> </td> <td style="width: 35pt;" class="excel424" width="47"> </td> <td style="width: 13pt;" class="excel432" width="17"> </td> <td style="width: 180pt;" class="excel432" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel426"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel427">2010</td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel427">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel420" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Balance at beginning of year</td> <td class="excel424"> </td> <td class="excel425">$</td> <td class="excel428" align="right">94&nbsp;</td> <td class="excel424"> </td> <td class="excel425">$</td> <td class="excel428" align="right">169&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel424"> </td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428"> </td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428"> </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Additions based on tax positions related to the current year</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">51&nbsp;</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">25&nbsp; </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Additions for tax positions of prior years</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">44&nbsp;</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">24&nbsp; </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Reductions for tax positions of prior years</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(19)</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(85)</td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Settlements with taxing authorities</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(2)</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(22)</td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Lapse of statutes of limitations</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(16)</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel429" align="right">(17)</td></tr> <tr style="height: 15.75pt;"><td style="font-style: normal; height: 15.75pt;" class="excel424">&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of year</td> <td class="excel424"> </td> <td class="excel425">$</td> <td class="excel430" align="right">152&nbsp;</td> <td class="excel424"> </td> <td class="excel425">$</td> <td style="border-top-style: none;" class="excel430" align="right">94&nbsp; </td></tr></table> </div> <div> <p align="left"><strong>Use of Estimates</strong></p> <p align="left">The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.&nbsp;&nbsp;Management periodically reviews its estimates, including those related to the recoverability and useful lives of assets, as well as liabilities for litigation, environmental remediation, casualty claims, income taxes and pension and other postretirement benefits.&nbsp;&nbsp;Changes in facts and circumstances may result in revised estimates.</p> </div> 49.56 49.56 49.56 47000000 35000000 417000000 572000000 <div> <div align="left"> <div> <p align="left"><strong>7.&nbsp;&nbsp;Current Liabilities</strong></p> <table class="excel470" border="0" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 180pt; height: 15pt;" class="excel471" width="240"> </td> <td style="width: 20pt;" class="excel471" width="27"> </td> <td style="width: 13pt;" class="excel480" width="17"> </td> <td style="width: 180pt;" class="excel480" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel473"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel474">2010</td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel474">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel473"> </td> <td class="excel481"> </td> <td class="excel481"> </td> <td class="excel481" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">Accounts payable:</td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td> <td class="excel471"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Accounts and wages payable</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">572</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">417 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Casualty and other claims (Note 17)</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">254</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">233 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Due to Conrail (Note 5)</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">128</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">104 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Vacation liability</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">122</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">123 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Equipment rents payable &ndash; net</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">80</td> <td class="excel47"> </td> <td class="excel472"> </td> <td class="excel475" align="right">75 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Other</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel476" align="right">25</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel476" align="right">22 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel471">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel471"> </td> <td class="excel472">$</td> <td style="border-top-style: none;" class="excel477" align="right">1,181</td> <td class="excel471"> </td> <td class="excel472">$</td> <td style="border-top-style: none;" class="excel477" align="right">974 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel471"> </td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">Other current liabilities:</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Interest payable</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">108</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel475" align="right">106 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Retiree benefit obligations (Note 11)</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">67</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">65 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Liabilities for forwarded traffic</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">52</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel475" align="right">42 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel471">&nbsp;&nbsp; Other</td> <td class="excel471"> </td> <td class="excel472"> </td> <td style="border-top-style: none;" class="excel478" align="right">17</td> <td class="excel471"> </td> <td class="excel472"> </td> <td class="excel476" align="right">19 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel471">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel479" align="right">244</td> <td class="excel471"> </td> <td class="excel472">$</td> <td class="excel479" align="right">232 </td></tr></table></div></div> </div> 974000000 1181000000 22000000 25000000 7000000 766000000 807000000 32000000 33000000 12000000 12000000 94000000 82000000 123000000 122000000 8793000000 341000000 1357000000 1516000000 243000000 249000000 2405000000 1455000000 907000000 5108000000 3436000000 320000000 9262000000 372000000 1383000000 1571000000 259000000 255000000 2619000000 1549000000 955000000 5495000000 3512000000 299000000 831000000 764000000 726000000 -942000000 -853000000 -805000000 1809000000 1892000000 76000000 15000000 33000000 5000000 5000000 27369000000 28199000000 2246000000 2471000000 90000000 175000000 60000000 20000000 10000000 64000000 76000000 35000000 90000000 175000000 54000000 28000000 1000000 2000000 3000000 18000000 2000000 52000000 206000000 618000000 996000000 827000000 412000000 378000000 -169000000 <div> <p align="left"><strong>Cash Equivalents</strong></p> <p align="left">"Cash equivalents" are highly liquid investments purchased three months or less from maturity.</p> </div> 996000000 827000000 <div> <div align="left"> <div> <div> <div> <div align="left"> <p align="left"><strong>17.&nbsp;&nbsp;Commitments and Contingencies</strong></p> <p align="left"><strong>Lawsuits</strong></p> <p align="left">Norfolk Southern and/or certain subsidiaries are defendants in numerous lawsuits and other claims relating principally to railroad operations.&nbsp;&nbsp;When management concludes that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, it is accrued through a charge to earnings.&nbsp;&nbsp;While the ultimate amount of liability incurred in any of these lawsuits and claims is dependent on future developments, in management's opinion, the recorded liability is adequate to cover the future payment of such liability and claims.&nbsp;&nbsp;However, the final outcome of any of these lawsuits and claims cannot be predicted with certainty, and unfavorable or unexpected outcomes could result in additional accruals that could be significant to results of operations in a particular year or quarter.&nbsp;&nbsp;Any adjustments to the recorded liability will be reflected in earnings in the periods in which such adjustments are known.</p> <p align="left">On November 6, 2007, various antitrust class actions filed against NS and other Class 1 railroads in various Federal district courts regarding fuel surcharges were consolidated in the District of Columbia by the Judicial Panel on Multidistrict Litigation.&nbsp;&nbsp;NS believes the allegations in the complaints are without merit and intends to vigorously defend the cases.&nbsp;&nbsp;NS does not believe that the outcome of these proceedings will have a material effect on its financial position, results of operations, or liquidity.&nbsp;&nbsp;A lawsuit containing similar allegations against NS and four other major railroads that was filed on March 25, 2008, in the U.S. District Court for the District of Minnesota was voluntarily dismissed by the plaintiff subject to a tolling agreement entered into in August 2008.</p> <p align="left"><strong>Casualty Claims</strong></p> <p align="left">Casualty claims include employee personal injury and occupational claims as well as third-party claims, all exclusive of legal costs.&nbsp;&nbsp;To aid in valuing its personal injury liability and determining the amount to accrue with respect to such claim during the year, NS' management utilizes studies prepared by an independent consulting actuarial firm.&nbsp;&nbsp;Job-related accidental injury and occupational claims are subject to the Federal Employers' Liability Act (FELA), which is applicable only to railroads.&nbsp;&nbsp;FELA's fault-based system produces results that are unpredictable and inconsistent as compared with a no-fault workers' compensation system.&nbsp;&nbsp;The variability inherent in this system could result in actual costs being different from the liability recorded.&nbsp;&nbsp;While the ultimate amount of claims incurred is dependent on future developments, in management's opinion, the recorded liability is adequate to cover the future payments of claims and is supported by the most recent actuarial study.&nbsp;&nbsp;In all cases, NS records a liability when the expected loss for the claim is both probable and estimable.</p> <p align="left">In April 2008, NS settled the lawsuit brought by Avondale Mills for claims associated with the January 6, 2005 derailment in Graniteville, SC.&nbsp;&nbsp;A portion of the settlement was not reimbursed by insurance and was included in 2008 expenses.&nbsp;&nbsp;The total liability related to the derailment represents NS' best estimate based on current facts and circumstances.&nbsp;&nbsp;The estimate includes amounts related to property damage, personal injury and response costs.&nbsp;&nbsp;NS' commercial insurance policies are expected to cover substantially all expenses related to this derailment above the unreimbursed portion and NS' self-insured retention, including NS' response costs and legal fees.&nbsp;&nbsp;The Consolidated Balance Sheets reflect long-term receivables for estimated recoveries from NS' insurance carriers.&nbsp;&nbsp;NS engaged in arbitration with two of its insurance carriers that failed to respond to insurance claims submitted by NS.&nbsp;&nbsp;During the first quarter of 2010, NS settled the arbitration claim ($<font class="_mt">100</font> million) with one of the insurance carriers with no adverse effect on NS' financial position, results of operations, or liquidity.&nbsp;&nbsp;The remaining insurance claim was arbitrated in December 2010.&nbsp;&nbsp;NS is currently awaiting a ruling from the arbitration panel.&nbsp;&nbsp;NS believes that the arbitration panel will rule in favor of NS and recovery of the recorded receivables for the contested portion ($<font class="_mt">43</font> million) is probable.</p> <p align="left"><strong>Employee personal injury claims</strong> &ndash; The largest component of casualties and other claims expense is employee personal injury costs.&nbsp;&nbsp;The independent actuarial firm engaged by NS provides quarterly studies to aid in valuing its employee personal injury liability and estimating its employee personal injury expense.&nbsp;&nbsp;The actuarial firm studies NS' historical patterns of reserving for claims and subsequent settlements, taking into account relevant outside influences.&nbsp;&nbsp;The actuary uses the results of these analyses to estimate the ultimate amount of liability, which includes amounts for incurred but unasserted claims.&nbsp;&nbsp;NS adjusts its liability quarterly based upon management's assessment and the results of the study.&nbsp;&nbsp;While actuarial studies reflected favorable claims development between 2008 and 2009 (resulting in a decrease of the annual cost related to personal injuries from $<font class="_mt">78</font> million to $<font class="_mt">51</font> million), a reduced level of favorable development in 2010 resulted in an increase in the annual cost related to personal injuries to $<font class="_mt">75</font> million in 2010 from $<font class="_mt">51</font> million in 2009.&nbsp;&nbsp;The estimate of loss liabilities is subject to inherent limitation given the difficulty of predicting future events such as jury decisions, court interpretations, or legislative changes and as such the actual loss may vary from the estimated liability recorded.</p> <p align="left"><strong>Occupational claims</strong> &ndash; Occupational claims (including asbestosis and other respiratory diseases, as well as conditions allegedly related to repetitive motion) are often not caused by a specific accident or event but rather allegedly result from a claimed exposure over time.&nbsp;&nbsp;Many such claims are being asserted by former or retired employees, some of whom have not been employed in the rail industry for decades.&nbsp;&nbsp;The independent actuarial firm provides an estimate of the occupational claims liability based upon NS' history of claim filings, severity, payments, and other pertinent facts.&nbsp;&nbsp;The liability is dependent upon management's judgments made as to the specific case reserves as well as judgments of the consulting independent actuarial firm in the periodic studies.&nbsp;&nbsp;The actuarial firm's estimate of ultimate loss includes a provision for those claims that have been incurred but not reported.&nbsp;&nbsp;This provision is derived by analyzing industry data and projecting NS' experience into the future as far as can be reasonably determined.&nbsp;&nbsp;NS adjusts its liability quarterly based upon management's assessment and the results of the study.&nbsp;&nbsp;However, it is possible that the recorded liability may not be adequate to cover the future payment of claims.&nbsp;&nbsp;Adjustments to the recorded liability are reflected in operating expenses in the periods in which such adjustments become known.</p> <p align="left"><strong>Third-party claims</strong> &ndash; NS records a liability for third-party claims including those for highway crossing accidents, trespasser and other injuries, automobile liability, property damage, and lading damage.&nbsp;&nbsp;The independent actuarial firm assists with the calculation of potential liability for third-party claims, except lading damage, based upon NS' experience including number and timing of incidents, amount of payments, settlement rates, number of open claims, and legal defenses.&nbsp;&nbsp;The actuarial estimate includes a provision for claims that have been incurred but have not yet been reported.&nbsp;&nbsp;Each quarter NS adjusts its liability based upon management's assessment and the results of the study.&nbsp;&nbsp;Given the inherent uncertainty in regard to the ultimate outcome of third-party claims, it is possible that the actual loss may differ from the estimated liability recorded.</p> <p align="left"><strong>Environmental Matters</strong></p> <p align="left">NS is subject to various jurisdictions' environmental laws and regulations.&nbsp;&nbsp;It is NS' policy to record a liability where such liability or loss is probable and its amount can estimated reasonably.&nbsp;&nbsp;Claims, if any, against third parties, for recovery of cleanup costs incurred by NS are reflected as receivables (when collection is probable) in the Consolidated Balance Sheets and are not netted against the associated NS liability.&nbsp;&nbsp;Environmental engineers regularly participate in ongoing evaluations of all known sites and in determining any necessary adjustments to liability estimates.&nbsp;&nbsp;NS also has an Environmental Policy Council, composed of senior managers, to oversee and interpret its environmental policy.</p> <p align="left">NS' Consolidated Balance Sheets include liabilities for environmental exposures in the amount of $<font class="_mt">33</font> million at December 31, 2010, and $<font class="_mt">32</font> million at December 31, 2009 (of which $<font class="_mt">12</font> million is classified as a current liability at December 31, 2010 and 2009).&nbsp;&nbsp;At December 31, 2010, the liability represents NS' estimate of the probable cleanup and remediation costs based on available information at&nbsp;<font class="_mt">143</font> known locations compared with&nbsp;<font class="_mt">144</font> locations at December 31, 2009.&nbsp;&nbsp;As of December 31, 2010,&nbsp;<font class="_mt">11</font> sites accounted for $<font class="_mt">15</font> million of the liability, and no individual site was considered to be material.&nbsp;&nbsp;NS anticipates that much of this liability will be paid out over&nbsp;<font class="_mt">five</font> years; however, some costs will be paid out over a longer period.</p> <p align="left">At&nbsp;<font class="_mt">32</font> locations, one or more Norfolk Southern subsidiaries, usually in conjunction with a number of other parties, have been identified as potentially responsible parties by the Environmental Protection Agency (EPA) or similar state authorities under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, or comparable state statutes, which often impose joint and several liability for cleanup costs.</p> <p align="left">With respect to known environmental sites (whether identified by NS or by the EPA or comparable state authorities), estimates of NS' ultimate potential financial exposure for a given site or in the aggregate for all such sites are necessarily imprecise because of the widely varying costs of currently available cleanup techniques, the likely development of new cleanup technologies, the difficulty of determining in advance the nature and full extent of contamination and each potential participant's share of any estimated loss (and that participant's ability to bear it), and evolving statutory and regulatory standards governing liability.</p> <p align="left">The risk of incurring environmental liability &ndash; for acts and omissions, past, present, and future &ndash; is inherent in the railroad business.&nbsp;&nbsp;Some of the commodities in NS' traffic mix, particularly those classified as hazardous materials, pose special risks that NS and its subsidiaries work diligently to minimize.&nbsp;&nbsp;In addition, several NS subsidiaries own, or have owned, land used as operating property, or which is leased and operated by others, or held for sale.&nbsp;&nbsp;Because environmental problems may exist on these properties that are latent or undisclosed, there can be no assurance that NS will not incur environmental liabilities or costs with respect to one or more of them, the amount and materiality of which cannot be estimated reliably at this time.&nbsp;&nbsp;Moreover, lawsuits and claims involving these and potentially other unidentified environmental sites and matters are likely to arise from time to time.&nbsp;&nbsp;The resulting liabilities could have a significant effect on financial position, results of operations, or liquidity in a particular year or quarter.</p> <p align="left">Based on its assessment of the facts and circumstances now know, management believes that it has recorded the probable costs for dealing with those environmental matters of which NS is aware.&nbsp;&nbsp;Further, management believes that it is unlikely that any known matters, either individually or in the aggregate, will have a material adverse effect on NS' financial position, results of operations, or liquidity.</p> <p align="left"><strong>Insurance</strong></p> <p align="left">Norfolk Southern obtains on behalf of itself and its subsidiaries insurance for potential losses for third-party liability and first-party property damages.&nbsp;&nbsp;NS is currently self-insured up to $<font class="_mt">50</font> million and above $<font class="_mt">1</font> billion per occurrence for bodily injury and property damage to third parties and up to $<font class="_mt">25</font> million and above $<font class="_mt">175</font> million per occurrence for property owned by NS or in NS' care, custody, or control.</p> <p align="left"><strong>Purchase Commitments</strong></p> <p align="left">At December 31, 2010, NS had outstanding purchase commitments totaling approximately $<font class="_mt">956</font> million for long-term service contracts through 2019 as well as track material, RoadRailer&#174; trailers, and freight cars, in connection with its capital programs through 2011.</p> <p align="left"><strong>Change-In-Control Arrangements</strong></p> <p align="left">Norfolk Southern has compensation agreements with certain officers and key employees that become operative only upon a change in control of Norfolk Southern, as defined in those agreements.&nbsp;&nbsp;The agreements provide generally for payments based on compensation at the time of a covered individual's involuntary or other specified termination and for certain other benefits.</p> <p align="left"><strong>Guarantees</strong></p> <p align="left">In a number of instances, Norfolk Southern and its subsidiaries have agreed to indemnify lenders for additional costs they may bear as a result of certain changes in laws or regulations applicable to their loans.&nbsp;&nbsp;Such changes may include impositions or modifications with respect to taxes, duties, reserves, liquidity, capital adequacy, special deposits, and similar requirements relating to extensions of credit by, deposits with, or the assets of liabilities of such lenders.&nbsp;&nbsp;The nature and timing of changes in laws or regulations applicable to NS' financings are inherently unpredictable, and therefore NS' exposure in connection with the foregoing indemnifications cannot be quantified.&nbsp;&nbsp;No liability has been recorded related to these indemnifications.&nbsp;&nbsp;In case of one type of equipment financing, NSR's Japanese leverage leases, NSR may terminate the leases and ancillary agreements if such a change-in-law indemnity is triggered.&nbsp;&nbsp;Such a termination would require NSR to make early termination payments that would not be expected to have a material effect on NS' financial position, results of operations, or liquidity.</p> <p align="left">NS has indemnified parties in a number of transactions for U.S. income tax withholding imposed as a result of changes in U.S. tax law.&nbsp;&nbsp;In all cases, NS has the right to unwind the related transaction if the withholding cannot be avoided in the future.&nbsp;&nbsp;Because these indemnities would be triggered and are dependent upon a change in the tax law, the maximum exposure is not quantifiable.&nbsp;&nbsp;Management does not believe that it is likely that it will be required to make any payments under these indemnities.</p> <p align="left">As of December 31, 2010, certain Norfolk Southern subsidiaries are contingently liable as guarantors with respect to $<font class="_mt">7</font> million of indebtedness, due in 2019, of an entity in which they have an ownership interest, the Terminal Railroad Association of St. Louis.&nbsp;&nbsp;Four other railroads are also jointly and severally liable as guarantors for this indebtedness.&nbsp;&nbsp;No liability has been recorded related to this guaranty.</p></div></div></div></div></div> </div> 1.22 1.36 1.4 1 1 1350000000 1350000000 369019990 357362604 370000000 358000000 1173000000 1123000000 1544000000 <div> <div align="left"> <div class="MetaData"> <p align="left"><strong>13.&nbsp;&nbsp;Stockholders' Equity</strong></p> <p align="left"><strong>Common Stock</strong></p> <p align="left">Common stock is reported net of shares held by consolidated subsidiaries (Treasury Shares) of Norfolk Southern.&nbsp;&nbsp;Treasury Shares at December 31, 2010 and 2009, amounted to&nbsp;<font class="_mt">20,336,843</font> and&nbsp;<font class="_mt">20,443,337</font> shares, respectively, with a cost of $<font class="_mt">19</font> million for 2010 and 2009.</p> <p align="left"><strong>Accumulated Other Comprehensive Loss</strong></p> <p align="left">"Accumulated other comprehensive loss" reported in the Consolidated Statements of Changes in Stockholders' Equity consisted of the following: </p> <p>&nbsp;</p> <p>&nbsp;</p> <table cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="height: 15pt;" width="385"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; Balance </td> <td>&nbsp; </td> <td>&nbsp; Net </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; Balance </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; at Beginning </td> <td>&nbsp; </td> <td>&nbsp; Gain </td> <td>&nbsp; </td> <td>&nbsp; Reclassification </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; at End </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; <u>of Year</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>(Loss)</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>Adjustments</u> </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; <u>of Year</u> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Year-ended 2010 </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; &nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;Pensions and other postretirement liabilities </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (764) </td> <td>&nbsp; $ </td> <td>&nbsp; (26) </td> <td>&nbsp; $ </td> <td>&nbsp; 64 </td> <td>&nbsp; $ </td> <td>&nbsp; (726) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; (89) </td> <td>&nbsp; </td> <td>&nbsp; 10&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; - </td> <td>&nbsp; </td> <td>&nbsp; (79) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (853) </td> <td>&nbsp; $ </td> <td>&nbsp; (16) </td> <td>&nbsp; $ </td> <td>&nbsp; 64 </td> <td>&nbsp; $ </td> <td>&nbsp; (805) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Year-ended 2009 </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><font style="height: 15pt;" class="_mt">&nbsp;&nbsp;&nbsp;Pensions and other postretirement liabilities</font> </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (831) </td> <td>&nbsp; $ </td> <td>&nbsp; 29 </td> <td>&nbsp; $ </td> <td>&nbsp; 38 </td> <td>&nbsp; $ </td> <td>&nbsp; (764) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;Other comprehensive loss of equity investees </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; (111) </td> <td>&nbsp; </td> <td>&nbsp; 22 </td> <td>&nbsp; </td> <td>&nbsp; - </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; (89) </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss </td> <td>&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (942) </td> <td>&nbsp; $ </td> <td>&nbsp; 51 </td> <td>&nbsp; $ </td> <td>&nbsp; 38 </td> <td style="border-top-style: none;">$ </td> <td>&nbsp; (853) </td></tr></table> <p align="left"><strong>Other Comprehensive Income (Loss)</strong></p> <p align="left">"Other comprehensive income (loss)" reported in the Consolidated Statements of Changes in Stockholders' Equity consisted of the following:</p> <p>&nbsp;</p> <p>&nbsp;</p> <table cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 294pt; height: 15pt;" width="392"> </td> <td style="width: 25pt;" width="33"> </td> <td style="width: 73pt;" width="97"> </td> <td style="width: 25pt;" width="97"> </td> <td>&nbsp; Tax </td> <td style="width: 25pt;" width="33"> </td> <td style="width: 73pt;" width="97"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; Pretax </td> <td>&nbsp; </td> <td>&nbsp; (Expense) </td> <td>&nbsp; </td> <td>&nbsp; Net-of-Tax </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; <u>Amount</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>Benefit</u> </td> <td>&nbsp; </td> <td>&nbsp; <u>Amount</u> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td> <div align="center"><i>($ in millions)</i></div></td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><strong><i>Year ended December 31, 2010</i></strong> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Net gain (loss) arising during the year: </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;<font style="height: 15pt;" class="_mt"> Pensions and other postretirement benefits</font> </td> <td>&nbsp; $ </td> <td>&nbsp; (42) </td> <td>&nbsp; $ </td> <td>&nbsp; 16&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (26) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Reclassification adjustments for costs </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td> <td>&nbsp; </td> <td>&nbsp; &nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income </td> <td>&nbsp; </td> <td>&nbsp; 103 </td> <td>&nbsp; </td> <td>&nbsp; (39) </td> <td>&nbsp; </td> <td>&nbsp; 64 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal </td> <td>&nbsp; </td> <td>&nbsp; 61 </td> <td>&nbsp; </td> <td>&nbsp; (23) </td> <td>&nbsp; </td> <td>&nbsp; 38 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; 11 </td> <td>&nbsp; </td> <td>&nbsp; (1) </td> <td>&nbsp; </td> <td>&nbsp; 10 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) </td> <td>&nbsp; $ </td> <td>&nbsp; 72 </td> <td>&nbsp; $ </td> <td>&nbsp; (24) </td> <td>&nbsp; $ </td> <td>&nbsp; 48 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><strong><i>Year ended December 31, 2009</i></strong> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Net gain (loss) arising during the year: </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;<font style="height: 15pt;" class="_mt"> &nbsp;Pensions and other postretirement benefits</font> </td> <td>&nbsp; $ </td> <td>&nbsp; 47 </td> <td>&nbsp; $ </td> <td>&nbsp; (18) </td> <td>&nbsp; $ </td> <td>&nbsp; 29 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Reclassification adjustments for costs </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income </td> <td>&nbsp; </td> <td>&nbsp; 61 </td> <td>&nbsp; </td> <td>&nbsp; (23) </td> <td>&nbsp; </td> <td>&nbsp; 38 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal </td> <td>&nbsp; </td> <td>&nbsp; 108 </td> <td>&nbsp; </td> <td>&nbsp; (41) </td> <td>&nbsp; </td> <td>&nbsp; 67 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; 24 </td> <td>&nbsp; </td> <td>&nbsp; (2) </td> <td>&nbsp; </td> <td>&nbsp; 22 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) </td> <td>&nbsp; $ </td> <td>&nbsp; 132 </td> <td>&nbsp; $ </td> <td>&nbsp; (43) </td> <td>&nbsp; $ </td> <td>&nbsp; 89 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;"> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;"><strong><i>Year ended December 31, 2008</i></strong> </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">Net gain (loss) arising during the year: </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;<font style="height: 15pt;" class="_mt">&nbsp; Pensions and other postretirement benefits</font> </td> <td>&nbsp; $ </td> <td>&nbsp; (812) </td> <td>&nbsp; $ </td> <td>&nbsp; 314 </td> <td>&nbsp; $ </td> <td>&nbsp; (498) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Reclassification adjustments for costs </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income </td> <td>&nbsp; </td> <td>&nbsp; 27 </td> <td>&nbsp; </td> <td>&nbsp; (11) </td> <td>&nbsp; </td> <td>&nbsp; 16 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal </td> <td>&nbsp; </td> <td>&nbsp; (785) </td> <td>&nbsp; </td> <td>&nbsp; 303&nbsp; </td> <td>&nbsp; </td> <td>&nbsp; (482) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;">&nbsp;&nbsp; Other comprehensive income (loss) of equity investees </td> <td>&nbsp; </td> <td>&nbsp; (65) </td> <td>&nbsp; </td> <td>&nbsp; 4 </td> <td>&nbsp; </td> <td>&nbsp; (61) </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss) </td> <td>&nbsp; $ </td> <td>&nbsp; (850) </td> <td>&nbsp; $ </td> <td>&nbsp; 307&nbsp; </td> <td>&nbsp; $ </td> <td>&nbsp; (543) </td></tr></table></div></div> </div> 804000000 837000000 819000000 657000000 239000000 492000000 744000000 250000000 559000000 87000000 11000000 67000000 8048000000 7971000000 0.0575 0.059 0.06 124000000 116000000 130000000 124000000 257000000 289000000 281000000 290000000 338000000 312000000 -34000000 33000000 49000000 31000000 871000000 823000000 -6605000000 -6943000000 142000000 145000000 857000000 802000000 46000000 50000000 661000000 617000000 14000000 21000000 7462000000 7745000000 6747000000 7088000000 267000000 292000000 7195000000 7453000000 829000000 170000000 849000000 185000000 1600000000 1700000000 10000000 7000000 23000000 307000000 17000000 216000000 106000000 8000000 10000000 108000000 25000000 7000000 35000000 25000000 52000000 48000000 -8000000 3000000 -2000000 3000000 3000000 883000000 154000000 904000000 57000000 414000000 821000000 370000000 807000000 70000000 14000000 27000000 140000000 0.0625 0.0625 0.0625 0.0625 0.0585 0.0625 0.0585 0.0625 0.0525 0.0585 0.054 0.0585 0.09 0.085 0.09 0.0875 0.085 0.0875 0.0875 0.085 0.0875 920000000 1670000000 1044000000 1696000000 1082000000 1813000000 -55000000 -109000000 -49000000 -113000000 55000000 11000000 100000000 49000000 111000000 0.43 0.42 -118000000 -9000000 143000000 11000000 0.57 0.58 64000000 126000000 61000000 124000000 55000000 116000000 59000000 122000000 57000000 119000000 15000000 173000000 15000000 154000000 15000000 142000000 138000000 1333000000 161000000 1542000000 178000000 1756000000 -883000000 -154000000 -904000000 -57000000 0.081 51000000 99000000 57000000 101000000 61000000 96000000 69000000 -39000000 91000000 1000000 114000000 31000000 159000000 177000000 181000000 197000000 16000000 25000000 16000000 26000000 16000000 26000000 0.75 0.085 1 1 815000000 845000000 826000000 <div> <div> <p align="left"><strong>16.&nbsp;&nbsp;Derivative Financial Instruments</strong></p> <p align="left">All derivatives are recognized in the financial statements as either assets or liabilities and are measured at fair value.&nbsp;&nbsp;Changes in fair value are recorded as adjustments to the assets or liabilities being hedged in "Other comprehensive loss," or in current earnings, depending on whether the derivative is designated and qualifies for hedge accounting, the type of hedge transaction represented, and the effectiveness of the hedge.</p> <p align="left">NS has used derivative financial instruments to manage its overall exposure to fluctuations in interest rates.&nbsp;&nbsp;NS does not engage in the trading of derivatives.&nbsp;&nbsp;Management has determined that its derivative financial instruments qualify as fair-value hedges, having values that highly correlate with the underlying hedged exposures, and has designated such instruments as hedging transactions.&nbsp;&nbsp;Credit risk related to the derivative financial instruments is considered to be minimal and is managed by requiring high credit standards for counterparties and periodic settlements.</p> <p align="left"><strong>Interest Rate Hedging</strong></p> <div align="left"> <p align="left">NS manages its overall exposure to fluctuations in interest rates by issuing both fixed- and floating-rate debt instruments, and by entering into interest rate hedging transactions to achieve an appropriate mix within its debt portfolio.&nbsp;&nbsp;NS had zero and $<font class="_mt">4</font> million, or less than <font class="_mt">1</font>%, of its fixed-rate debt portfolio hedged as of December 31, 2010, and 2009, respectively, using interest rate swaps that qualify for and are designated as fair-value hedge transactions.&nbsp;&nbsp;NS' interest rate hedging activity resulted in decreases in interest expense of less than $1 million for 2010, 2009, and 2008.&nbsp;&nbsp;These swaps have been effective in hedging the changes in fair value of the related debt arising from changes in interest rates and there has been no impact on earnings resulting from ineffectiveness associated with these derivative transactions.</p></div> <p align="left"><strong>&nbsp;</strong><strong>Fair Values</strong></p> <p>&nbsp;Fair values of interest rate swaps at December 31, 2010, and 2009, were determined based upon the present value of expected future cash flows discounted at the appropriate implied spot rate from the spot rate yield curve.&nbsp;&nbsp;Fair value adjustments are noncash transactions and, accordingly, are excluded from the Consolidated Statements of Cash Flows.&nbsp;&nbsp;The gross and net asset position of NS' outstanding derivative financial instruments was zero and less than $<font class="_mt">1</font> million at December 31, 2010 and 2009, respectively.</p></div> </div> <div> <p align="left"><strong>Derivatives</strong></p> <p align="left">NS does not engage in the trading of derivatives.&nbsp;&nbsp;NS uses derivative financial instruments in the management of its mix of fixed- and floating-rate debt.&nbsp;&nbsp;Management has determined that these derivative instruments qualify as fair-value hedges, having values that highly correlate with the underlying hedged exposures, and has designated such instruments as hedging transactions.&nbsp;&nbsp;Income and expense related to the derivative financial instruments are recorded in the same category as generated by the underlying asset or liability.&nbsp;&nbsp;Credit risk related to the derivative financial instruments is considered to be minimal and is managed by requiring high credit standards for counterparties and periodic settlements (see Note 16).</p> </div> <div> <div> <div> <p align="left"><strong>12.&nbsp;&nbsp;Stock-Based Compensation</strong></p> <div align="left"> <div align="left"> <p align="left">Under the stockholder-approved Long-Term Incentive Plan (LTIP), a committee of nonemployee directors of the Board or the chief executive officer (if delegated such authority by the committee) may grant stock options, stock appreciation rights (SARs), restricted stock units, restricted shares, performance shares, and performance share units (PSUs), up to a maximum of&nbsp;<font class="_mt">96,125,000</font> shares of Norfolk Southern Common Stock (Common Stock).&nbsp;&nbsp;Of these shares,&nbsp;<font class="_mt">5,000,000</font> were approved by the Board for issuance to non-officer participants; as a broad-based issuance, stockholder approval was not required.&nbsp;&nbsp;In May 2010, the stockholders approved an amended LTIP that eliminated the previous limit on the number of shares of stock that could be granted as restricted stock units, restricted shares, or performance shares and instead adopted a fungible share reserve ratio so that, for awards granted after May 13, 2010, the number of shares remaining for issuance under the amended LTIP will be reduced (i) by&nbsp;<font class="_mt">1</font> for each award granted as an option or stock-settled stock appreciation right, or (ii) by&nbsp;<font class="_mt">1.61</font> for an award made in the form other than an option or stock-settled stock appreciation right.&nbsp;&nbsp;Under the Board-approved Thoroughbred Stock Option Plan (TSOP), the committee may grant stock options up to a maximum of&nbsp;<font class="_mt">6,000,000</font> shares of Common Stock; as a broad-based stock option plan, stockholder approval of TSOP was not required.&nbsp;&nbsp;NS uses newly issued shares to satisfy any exercises and awards under LTIP and TSOP.</p></div></div> <p align="left">The LTIP also permits the payment &ndash; on a current or a deferred basis and in cash or in stock &ndash; of dividend equivalents on shares of Common Stock covered by options, PSUs, or restricted stock units in an amount commensurate with regular quarterly dividends paid on Common Stock.</p> <p align="left">During the first quarter of 2010, a committee of nonemployee directors of NS' Board granted stock options, restricted stock units and PSUs pursuant to LTIP and granted stock options pursuant to TSOP.&nbsp;&nbsp;Receipt of an award under LTIP was made contingent upon the awardee's execution of a non-compete agreement, and all awards under LTIP were made subject to forfeiture in the event the awardee "engages in competing employment" for a period of time following retirement.</p> <p><strong>Accounting Method</strong></p> <p>NS accounts for its grants of PSUs, restricted stock units, restricted shares, dividend equivalents, tax absorption payments, and SARs in accordance with ASC 718 "Share-Based Payment."&nbsp;&nbsp;Accordingly, all awards result in charges to net income while dividend equivalents, which are all related to equity classified awards, are charged to retained income.&nbsp;&nbsp;Related compensation costs were $<font class="_mt">67</font> million in 2010, $<font class="_mt">60</font> million in 2009, and $<font class="_mt">89</font> million in 2008.&nbsp;&nbsp;The total tax effects recognized in income in relation to stock-based compensation were benefits of $<font class="_mt">21</font> million in 2010, $<font class="_mt">18</font> million in 2009, and $<font class="_mt">30</font> million in 2008.</p> <p>"Common stock issued &ndash; net" in the Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009, and 2008 includes tax benefits generated from tax deductions in excess of compensation costs recognized (excess tax benefits) for share-based awards of &nbsp;$<font class="_mt">33</font> million, $<font class="_mt">15</font> million, and $<font class="_mt">76</font> million, respectively.</p> <p><strong>Stock Options</strong></p> <div align="left"> <p>Options may be granted for a term not to exceed&nbsp;<font class="_mt">10</font> years and are subject to a vesting period of at least one year.&nbsp;&nbsp;Option exercise prices are at not less than the fair market value of Common Stock on the effective date of the grant and, effective for awards granted after May 13, 2010, may not be less than the higher of (i) the fair market value of Common Stock on the date of grant or (ii) the closing price of Common Stock on the date of grant.&nbsp;&nbsp;In the first quarter of 2010,&nbsp;<font class="_mt">824,900</font> options were granted under the LTIP and&nbsp;<font class="_mt">259,800</font> options were granted under the TSOP.&nbsp;&nbsp;In each case, the grant price was $<font class="_mt">47.76</font>, which was the higher of (i) the average fair market value of Common Stock on the date of grant or (ii) the closing price of Common Stock on the date of the grant.&nbsp;&nbsp;The options granted under the LTIP and TSOP in 2010 may not be exercised prior to the&nbsp;<font class="_mt">fourth</font> and&nbsp;<font class="_mt">third</font> anniversaries of the date of grant, respectively.&nbsp;&nbsp;Holders of the options granted under the LTIP in 2010 who remain actively employed receive cash dividend equivalent payments for four years in an amount equal to the regular quarterly dividends paid on Common Stock.</p></div> <p>In the first quarter of 2009,&nbsp;<font class="_mt">1,209,700</font> options were granted under the LTIP and&nbsp;<font class="_mt">251,200</font> options were granted under the TSOP, each with a grant price of $<font class="_mt">38.71</font>.&nbsp;&nbsp;The options granted under the LTIP and TSOP in 2009 may not be exercised prior to the fourth and third anniversaries of the date of grant, respectively.&nbsp;&nbsp;In the first quarter of 2008,&nbsp;<font class="_mt">1,162,600</font> options were granted under the LTIP and&nbsp;<font class="_mt">250,000</font> options were granted under the TSOP, each with a grant price of $<font class="_mt">50.74</font>.&nbsp; The options granted under the LTIP and TSOP in 2008 may not be exercised prior to the third anniversary of the date of grant.&nbsp;&nbsp;For both 2009 and 2008, the grant price was the higher of (i) the average fair market value of Common Stock on the date of grant or (ii) the closing price of Common Stock on the date of the grant, and the options have a term of ten years.</p> <p>The fair value of each option awarded in 2010, 2009, and 2008 was measured on the date of grant using a lattice-based option valuation model.&nbsp;&nbsp;Expected volatilities are based on implied volatilities from traded options on Common Stock and historical volatility of Common Stock.&nbsp;&nbsp;NS uses historical data to estimate option exercises and employee terminations within the valuation model.&nbsp;&nbsp;The average expected option life is derived from the output of the valuation model and represents the period of time that options granted are expected to be outstanding.&nbsp;&nbsp;The average risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.&nbsp;&nbsp;For options granted that include dividend equivalent payments, a dividend yield of zero was used.&nbsp;&nbsp;For 2010, 2009, and 2008, a dividend yield of <font class="_mt">2.89</font>%, <font class="_mt">2.4</font>%, and <font class="_mt">2.29</font>%, respectively, was used for LTIP options for periods where no dividend equivalent payments are made as well as for TSOP options which do not receive dividend equivalents.&nbsp;&nbsp;The assumptions for the 2010, 2009, and 2008 LTIP and TSOP grants are shown in the following table:</p> <blockquote> </blockquote> <blockquote> </blockquote> <table class="excel621" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel625" width="295">&nbsp;</td> <td style="width: 20pt;" class="excel622" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel622" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel626" width="83"><strong><u>2010</u></strong></td> <td style="width: 20pt;" class="excel622" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel622" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel626" width="83"><strong><u>2009</u></strong></td> <td style="width: 20pt;" class="excel622" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel622" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel626" width="83"><strong><u>2008</u></strong></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel625">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel627" colspan="7">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Expected volatility range</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right"><font class="_mt">29</font>% - <font class="_mt">32</font>%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right"><font class="_mt">28</font>% - <font class="_mt">53</font>%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right"><font class="_mt">25</font>% - <font class="_mt">32</font>%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average expected volatility</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel629" align="right">32%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel629" align="right">43%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel629" align="right">32%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average risk-free interest rate</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">3.63%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">2.87%</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">3.68%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average expected option term LTIP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">8.3 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">6.5 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">5.9 years</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Per-share grant-date fair value LTIP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$18.54</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$18.18</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$19.32</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Average expected option term TSOP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">8.3 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">9.2 years</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel628" align="right">8.0 years</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Per-share grant-date fair value TSOP</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$14.91</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$15.41</td> <td class="excel622">&nbsp;</td> <td class="excel624">&nbsp;</td> <td class="excel630" align="right">$16.29</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel622">Options granted (LTIP and TSOP)</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel623" align="right">1,084,700</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel623" align="right">1,460,900</td> <td class="excel622">&nbsp;</td> <td class="excel622">&nbsp;</td> <td class="excel624" align="right">1,412,600</td></tr></table> <blockquote> </blockquote> <blockquote> </blockquote> <div align="left"> <p align="left">A summary of options and changes during the year is presented below:</p></div> <table class="excel659" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel660" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel660" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel660" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel673" width="107"> <div align="right"><strong>Option&nbsp;&nbsp;&nbsp;&nbsp;</strong></div></td> <td style="width: 35pt;" class="excel660" width="47">&nbsp;</td> <td style="width: 13pt;" class="excel660" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel673" width="107"> <div align="right"><strong>Weighted Avg.</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel662">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel673"> <div align="right"><u><strong>Shares</strong></u>&nbsp;&nbsp;&nbsp;&nbsp;</div></td> <td class="excel660">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel666"> <div align="right"><strong><u>Exercise Price</u></strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel662">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td> <td class="excel668">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Outstanding at December 31, 2009</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10" align="right">13,198,140&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">$</td> <td class="excel10">32.95&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Granted</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10" align="right">1,084,700&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10">47.76&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Exercised</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10" align="right">(2,533,727)</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10">22.51&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel669">Forfeited</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel14" align="right">(14,000)</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel10">45.80&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel669">&nbsp;&nbsp; Outstanding at December 31, 2010</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel502" align="right">11,735,113&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel661">$</td> <td class="excel10">36.55&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel669">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel628">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">&nbsp;</td> <td class="excel628">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel660">Exercisable at December 31, 2010</td> <td class="excel660">&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel10" align="right">8,208,413&nbsp;</td> <td class="excel660">&nbsp;</td> <td class="excel661">$</td> <td class="excel10">32.74&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr></table> <p>The aggregate intrinsic value of options outstanding at December 31, 2010, was $<font class="_mt">308</font> million with a weighted average remaining contractual term of&nbsp;<font class="_mt">5.1</font> years.&nbsp;&nbsp;Of these options outstanding,&nbsp;<font class="_mt">8,208,413</font> were exercisable and had an aggregate intrinsic value of $<font class="_mt">247</font> million with a weighted average remaining contractual term of&nbsp;<font class="_mt">3.8</font> years.&nbsp;&nbsp;The following table provides information related to options exercised as of December 31 for the respective years:</p> <blockquote> </blockquote> <blockquote> </blockquote> <table class="excel650" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel653" width="295">&nbsp;</td> <td style="width: 20pt;" class="excel651" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel651" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel654" width="83"> <div align="center"><u><strong>2010</strong></u></div></td> <td style="width: 20pt;" class="excel651" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel651" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel654" width="83"> <div align="center"><strong><u>2009</u></strong></div></td> <td style="width: 20pt;" class="excel651" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel651" width="17">&nbsp;</td> <td style="width: 62pt;" class="excel654" width="83"> <div align="center"><strong><u>2008</u></strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel653">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel657" colspan="7"> <div align="center"><em>($ in millions)</em></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel653">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel651">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td> <td class="excel657">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Options exercised</td> <td class="excel651">&nbsp;</td> <td class="excel652">&nbsp;</td> <td class="excel10">2,533,727</td> <td class="excel651">&nbsp;</td> <td class="excel652">&nbsp;</td> <td class="excel10">2,190,947</td> <td class="excel651">&nbsp;</td> <td class="excel652">&nbsp;</td> <td class="excel10">5,697,049</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Total intrinsic value</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">91</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">48</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">208</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Cash received upon exercise of options</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">55</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">51</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">137</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel651">Related excess tax benefits realized</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">32</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">18</td> <td class="excel651">&nbsp;</td> <td class="excel652">$</td> <td class="excel10" align="right">73</td></tr></table> <p align="left">At December 31, 2010, there was $<font class="_mt">10</font> million of total unrecognized compensation related to stock options granted under the LTIP and TSOP, which is expected to be recognized over a weighted-average period of approximately&nbsp;<font class="_mt">2.4</font> years.</p> <p align="left"><strong>Restricted Stock Units and Restricted Shares</strong></p> <p align="left">Restricted stock unit grants were&nbsp;<font class="_mt">168,250</font> in 2010, with a grant-date fair value of $<font class="_mt">47.76</font> and a five-year restriction period.&nbsp;&nbsp;In 2009, restricted stock unit grants were&nbsp;<font class="_mt">320,550</font> with a grant-date fair value of $<font class="_mt">38.72</font> and a five-year restriction period.&nbsp;&nbsp;In 2008, restricted stock unit grants were&nbsp;<font class="_mt">299,950</font> with a grant-date fair value of $<font class="_mt">50.47</font> and a five-year restriction period.&nbsp;&nbsp;Restricted stock units granted in 2010, 2009, and 2008 will be settled through issuance of shares of Common Stock.&nbsp;&nbsp;The restricted stock unit grants include cash dividend equivalent payments during the restriction period commensurate with regular quarterly dividends paid on Common Stock.&nbsp;&nbsp;No restricted shares were issued during 2010, 2009, or 2008.</p> <blockquote> </blockquote> <blockquote> </blockquote> <div align="left"> <p align="left">A summary of the status of and changes in restricted stock units and restricted shares is presented below:</p></div> <table class="excel674" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel675" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel675" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel675" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel675" width="107">&nbsp;</td> <td style="width: 35pt;" class="excel675" width="47">&nbsp;</td> <td style="width: 80pt;" class="excel675" width="107">&nbsp;</td> <td style="width: 35pt;" class="excel675" width="47">&nbsp;</td> <td style="width: 13pt;" class="excel675" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel682" width="107"> <div align="center"><strong>Weighted - Average</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel686">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel686">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel682"> <div align="center"><strong>Grant-Date</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel677">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel678"> <div align="center"><u><strong>Units</strong></u></div></td> <td class="excel675">&nbsp;</td> <td class="excel678"> <div align="center"><u><strong>Shares</strong></u></div></td> <td class="excel675">&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel678"> <div align="center"><u><strong>Fair Value</strong></u></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel677">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td> <td class="excel683">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Nonvested at December 31, 2009</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel10" align="right">1,218,960&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel10" align="right">433,236&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel676">$</td> <td class="excel687"> <div align="center">40.94 </div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Granted</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel10" align="right">168,250&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel10" align="right">-&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel687"> <div align="center">47.76</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Vested</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel10" align="right">(286,710)</td> <td class="excel675">&nbsp;</td> <td class="excel10" align="right">(433,236)</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel687"> <div align="center">34.10</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel685">Forfeited</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel607" align="right">(2,500)</td> <td class="excel675">&nbsp;</td> <td class="excel607" align="right">-&nbsp;</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel687"> <div align="center">46.49</div></td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel685">&nbsp;&nbsp; Nonvested at December 31, 2010</td> <td class="excel675">&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel609" align="right">1,098,000&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel609" align="right">-&nbsp;</td> <td class="excel676">&nbsp;</td> <td class="excel676">$</td> <td class="excel689"> <div align="center">40.94</div></td></tr></table><strong> </strong> <div align="left"> <p align="left">At December 31, 2010, there was $<font class="_mt">7</font> million of total unrecognized compensation related to restricted stock units granted under the LTIP, which is expected to be recognized over a weighted-average period of approximately&nbsp;<font class="_mt">2.9</font> years.&nbsp;&nbsp;The total fair values of the restricted stock units paid in cash and restricted shares vested during the twelve months ended December 31, 2010, 2009, and 2008 were $<font class="_mt">35</font> million, $<font class="_mt">26</font> million, and $<font class="_mt">1</font> million, respectively.&nbsp;&nbsp;The total related excess tax amounts realized were:&nbsp; a benefit of $<font class="_mt">2</font> million in 2010; a liability of $<font class="_mt">1</font> million in 2009; and, a benefit of $<font class="_mt">1</font> million in 2008.</p></div> <p align="left"><strong>&nbsp;</strong><strong>Performance Share Units</strong></p> <blockquote> </blockquote> <blockquote> </blockquote> <div align="left"> <p align="left">PSUs provide for awards based on achievement of certain predetermined corporate performance goals (total shareholder return, return on average invested capital and operating ratio) at the end of a three-year cycle.&nbsp;&nbsp;PSU grants and average grant-date fair values were&nbsp;<font class="_mt">824,900</font> and $<font class="_mt">47.76</font> in 2010;&nbsp;<font class="_mt">1,209,700</font> and $<font class="_mt">38.705</font> in 2009; and&nbsp;<font class="_mt">1,162,600</font> and $<font class="_mt">50.465</font> in 2008.&nbsp;&nbsp;The PSUs granted in 2010 and 2009 will be paid in the form of shares of Common Stock; however, one-half of any previously granted PSUs earned will be paid in the form of shares of Common Stock, with the other half to be paid in cash.&nbsp;&nbsp;A summary of the status of and changes in PSUs is presented below:</p></div> <table class="excel690" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel691" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel691" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel691" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel691" width="107">&nbsp;</td> <td style="width: 35pt;" class="excel691" width="47">&nbsp;</td> <td style="width: 13pt;" class="excel691" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel699" width="107"> <div align="center"><strong>Weighted - Average</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel703"> <div align="center"><strong>Performance</strong></div></td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel699"> <div align="center"><strong>Grant-Date</strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel693">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel697"> <div align="center"><strong><u>Share Units</u></strong></div></td> <td class="excel691">&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel694"> <div align="center"><strong><u>Fair Value</u></strong></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel693">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td> <td class="excel700">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Balance December 31, 2009</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">3,531,000&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel692">$</td> <td class="excel704"> <div align="center">46.14 </div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Granted</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">824,900&nbsp;</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel705"> <div align="center">47.76</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Earned &ndash; paid in Common Stock</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">(425,859)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">49.56</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Earned &ndash; paid in cash</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">(426,034)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">49.56</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Unearned</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel10" align="right">(310,307)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">49.56</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel702">Forfeited</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel607" align="right">(9,000)</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel706"> <div align="center">45.36</div></td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel702">&nbsp;&nbsp; Balance December 31, 2010</td> <td class="excel691">&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel609" align="right">3,184,700&nbsp;</td> <td class="excel692">&nbsp;</td> <td class="excel692">$</td> <td class="excel706"> <div align="center">45.31</div></td></tr></table> <p align="left">As of December 31, 2010, there was $<font class="_mt">10</font> million of total unrecognized compensation related to PSUs granted under the LTIP, which is expected to be recognized over a weighted-average period of approximately&nbsp;<font class="_mt">1.8</font> years.&nbsp;&nbsp;The total fair values of PSUs earned and paid in cash during the twelve months ended December 31, 2010, 2009, and 2008 were $<font class="_mt">20</font> million, $<font class="_mt">19</font> million, and $<font class="_mt">26</font> million, respectively.&nbsp;&nbsp;The total related excess tax liability realized was less than $<font class="_mt">1</font> million in 2010 and $<font class="_mt">2</font> million in 2009, and the total related excess tax benefit in 2008 was $<font class="_mt">2</font> million.</p> <p align="left"><strong>Shares Available and Issued</strong></p> <p align="left">Shares of stock available for future grants and issued in connection with all features of the LTIP and TSOP as of December 31, were as follows:</p> <blockquote> </blockquote> <blockquote> </blockquote> <table class="excel707" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel712" width="302">&nbsp;</td> <td style="width: 20pt;" class="excel708" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel708" width="17">&nbsp;</td> <td style="width: 80pt;" class="excel713" width="107"> <div align="center"><u><strong>2010</strong></u></div></td> <td style="width: 35pt;" class="excel708" width="47">&nbsp;</td> <td style="width: 80pt;" class="excel713" width="107"> <div align="center"><u><strong>2009</strong></u></div></td> <td style="width: 35pt;" class="excel708" width="47">&nbsp;</td> <td style="width: 80pt;" class="excel713" width="107"> <div align="center"><u><strong>2008</strong></u></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel716">Available for future grants:</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td> <td class="excel714">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; LTIP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">10,551,253</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">4,136,591</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">6,837,414</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; TSOP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">1,891,556</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">2,145,356</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">2,042,420</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">Shares of Common Stock issued:</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel628">&nbsp;</td> <td class="excel708">&nbsp;</td> <td class="excel628">&nbsp;</td> <td class="excel708">&nbsp;</td> <td class="excel628">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; LTIP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">2,901,786</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">2,192,764</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">5,569,683</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel715">&nbsp;&nbsp; TSOP</td> <td class="excel708">&nbsp;</td> <td class="excel711">&nbsp;</td> <td class="excel10" align="right">57,800</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">489,945</td> <td class="excel708">&nbsp;</td> <td class="excel10" align="right">642,538</td></tr></table></div></div> </div> 456000000 456000000 500000000 500000000 514000000 514000000 133000000 133000000 4.58 0.48 2.79 0.67 0.82 0.83 0.69 4.06 1.06 1.21 1.11 4.52 0.47 2.76 0.66 0.81 0.82 0.68 4 1.04 1.19 1.09 <div> <div> <div align="left"> <p align="left"><strong>15.&nbsp;&nbsp;Earnings Per Share</strong></p> <p align="left">The following tables set forth the calculation of basic and diluted earnings per share:</p> <blockquote> </blockquote> <blockquote> </blockquote> <table class="excel746" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel749" width="295"> </td> <td style="width: 20pt;" class="excel747" width="27"> </td> <td style="width: 13pt;" class="excel747" width="17"> </td> <td style="width: 62pt;" class="excel750" width="83"> <div align="center"><u><strong>2010</strong></u></div></td> <td style="width: 20pt;" class="excel747" width="26"> </td> <td style="width: 13pt;" class="excel747" width="17"> </td> <td style="width: 62pt;" class="excel750" width="83"> <div align="center"><u><strong>2009</strong></u></div></td> <td style="width: 20pt;" class="excel747" width="26"> </td> <td style="width: 13pt;" class="excel747" width="17"> </td> <td style="width: 62pt;" class="excel750" width="83"> <div align="center"><u><strong>2008</strong></u></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel749"> </td> <td class="excel747"> </td> <td class="excel747"> </td> <td class="excel753" colspan="7"> <div align="center"><em>($ in millions except per share, shares in millions)</em></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel749"> </td> <td class="excel747"> </td> <td class="excel747"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel747">Basic earnings per share:</td> <td class="excel747"> </td> <td class="excel748"> </td> <td class="excel751"> </td> <td class="excel747"> </td> <td class="excel748"> </td> <td class="excel751"> </td> <td class="excel747"> </td> <td class="excel748"> </td> <td class="excel751"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel747">&nbsp;&nbsp; Income available to common stockholders</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel10" align="right">1,488</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel10" align="right">1,026</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel10" align="right">1,707</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel747">&nbsp;&nbsp; Weighted-average shares outstanding</td> <td class="excel747"> </td> <td class="excel628"> </td> <td class="excel607" align="right">366.5</td> <td class="excel747"> </td> <td class="excel628"> </td> <td class="excel607" align="right">367.1</td> <td class="excel747"> </td> <td class="excel628"> </td> <td class="excel607" align="right">372.3</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel747">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel607" align="right">4.06</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel607" align="right">2.79</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel607" align="right">4.58</td></tr></table> <p align="left">In 2009, NS adopted the provisions of the FASB FSP EITF No. 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities" (ASC 260-10), which requires the treatment of unvested stock options receiving dividend equivalents as participating securities in computing earnings per share under the two-class method.&nbsp;&nbsp;Accordingly, income available to common stockholders for 2010 and 2009, reflects $<font class="_mt">8</font> million reductions, and for 2008, reflects a $<font class="_mt">9</font> million reduction from net income for the effect of dividend equivalent payments made to holders of stock options.</p> <blockquote> </blockquote> <blockquote> </blockquote> <table class="excel874" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 388pt; height: 15pt;" class="excel877" width="517"> </td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 62pt;" class="excel615" width="83">2010</td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 62pt;" class="excel615" width="83">2009</td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 62pt;" class="excel615" width="83">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel877"> </td> <td class="excel875"> </td> <td class="excel619" colspan="7">($ in millions except per share, shares in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel877"> </td> <td class="excel875"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">Diluted earnings per share:</td> <td class="excel876"> </td> <td class="excel879"> </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel879"> </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel879"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Income available to common stockholders</td> <td class="excel628">$</td> <td class="excel607" align="right">1,488 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">1,026 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">1,716 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Weighted-average shares outstanding per above</td> <td class="excel876"> </td> <td class="excel10" align="right">366.5 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel10" align="right">367.1 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel10" align="right">372.3 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Diluted effect of outstanding options, PSUs and restricted stock units/shares</td> <td class="excel876"> </td> <td class="excel607" align="right">5.3 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">5.0 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">7.7 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Adjusted weighted-average shares outstanding</td> <td class="excel876"> </td> <td class="excel607" align="right">371.8 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">372.1 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">380.0 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel875">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share</td> <td class="excel628">$</td> <td class="excel607" align="right">4.00 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">2.76 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">4.52 </td></tr></table> <p align="left">As required under the provisions of FSP EITF No. 03-6-1 (ASC 260-10), diluted earnings per share for 2010 and 2009 were calculated under the more dilutive two-class method (as compared to the treasury stock method) and accordingly, income available to common stockholders for 2010 and 2009 reflects $8 million reductions from net income for dividend equivalent payments.&nbsp;&nbsp;The diluted calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows:&nbsp;&nbsp;none in 2010,&nbsp;<font class="_mt">1.4</font> million in 2009, and none in 2008.</p></div></div> </div> 0.38 0.36 0.37 0.35 0.35 0.35 -0.01 0.03 0.02 0.03 1.8 2.9 2.4 10000000 7000000 10000000 9000000 8000000 8000000 0.58 0.5 0.5 1753000000 1799000000 <div> <p align="left"><b>4.&nbsp;&nbsp;Fair Value</b></p> <p align="left"><b>Fair Value Measurements</b></p> <p align="left">ASC 820-10, Fair Value Measurements, established a framework for measuring fair value and a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:</p> <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td>Level&nbsp;1</td> <td>&nbsp;</td> <td>Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that NS has the ability to access.</td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>Level&nbsp;2</td> <td>&nbsp;</td> <td>Inputs to the valuation methodology include:</td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td> <ul> <li>Quoted prices for similar assets or liabilities in active markets; </li> <li>Quoted prices for identical or similar assets or liabilities in inactive markets;</li> <li>Inputs other than quoted prices that are observable for the asset or liability; </li> <li>Inputs that are derived principally from or corroborated by observable market data by correlation or other means.</li></ul></td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.</td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>Level&nbsp;3</td> <td>&nbsp;</td> <td>Inputs to the valuation methodology are unobservable and significant to the fair value measurement.</td></tr></table></div> <p>The asset's or liability's fair value measurement level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement.&nbsp;&nbsp;At December 31, 2010 and 2009, for assets measured at fair value on a recurring basis, there were $<font class="_mt">175</font> million and $<font class="_mt">90</font> million of available-for-sale securities valued under level 2 of the fair value hierarchy, respectively.&nbsp;&nbsp;There were no available-for-sale securities valued under level 1 or level 3 valuation techniques.</p> <p><b>Fair Values of Financial Instruments</b> </p> <p>In accordance with ASC 825, Financial Instruments, NS has evaluated the fair values of financial instruments and methods used to determine those fair values.&nbsp;&nbsp;The fair values of Cash and cash equivalents, Short-term investments, Accounts receivable, Accounts payable, and Short-term debt approximate carrying values because of the short maturity of these financial instruments.&nbsp;&nbsp;The carrying value of corporate-owned life insurance is recorded at cash surrender value and, accordingly, approximates fair value.&nbsp;&nbsp;The carrying amounts and estimated fair values for the remaining financial instruments, excluding derivatives and investments accounted for under the equity method, consisted of the following at December 31:</p> <div> <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">2010</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">2009</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Carrying</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Fair</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Carrying</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Fair</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Amount</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Value</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Amount</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">Value</td></tr> <tr><td align="left">($ in millions)</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr align="right"><td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">&nbsp;</td></tr> <tr align="right"><td align="left">Long-term investments</td> <td align="right">$</td> <td align="right">192</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">222&nbsp;</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">237&nbsp; </td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">260&nbsp; </td></tr> <tr align="right"><td align="left">Long-term debt</td> <td align="right">$</td> <td align="right">(6,925)</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">(7,971)</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">(7,053)</td> <td align="right">&nbsp;</td> <td align="right">$</td> <td align="right">(8,048)</td></tr></table></div> <p align="left">Underlying net assets were used to estimate the fair value of investments.&nbsp;&nbsp;The fair value of notes receivable are based on future discounted cash flows.&nbsp;&nbsp;The fair values of debt were estimated based on quoted market prices or discounted cash flows using current interest rates for debt with similar terms, company rating, and remaining maturity.</p> <p align="left">Carrying amounts of available-for-sale securities reflect unrealized holding losses of less than $<font class="_mt">1</font> million on both December 31, 2010 and 2009.&nbsp;&nbsp;Sales of available-for-sale securities were $<font class="_mt">225</font> million for the year ended December 31, 2010, and immaterial for the years ended December 31, 2009 and 2008.</p> </div> 1638000000 725000000 1079000000 29000000 18000000 41000000 49000000 59000000 108000000 56000000 45000000 15000000 40000000 <div> <div align="left"> <div> <div> <div> <p align="left"><strong>3.&nbsp;&nbsp;Income Taxes</strong></p> <p align="left"><strong>Provisions for Income Taxes</strong></p> <table class="excel339" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 170pt; height: 15pt;" class="excel342" width="227"> </td> <td style="width: 20pt;" class="excel340" width="27"> </td> <td style="width: 13pt;" class="excel340" width="17"> </td> <td style="width: 64pt;" class="excel343" width="85">2010</td> <td style="width: 35pt;" class="excel340" width="47"> </td> <td style="width: 13pt;" class="excel340" width="17"> </td> <td style="width: 64pt;" class="excel343" width="85">2009</td> <td style="width: 35pt;" class="excel340" width="47"> </td> <td style="width: 13pt;" class="excel340" width="17"> </td> <td style="width: 64pt;" class="excel343" width="85">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel342"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel343"> </td> <td class="excel348" colspan="5">($ in millions)</td> <td class="excel343"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel342"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel343"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel348"> </td> <td class="excel343"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">Current:</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; Federal</td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel344" align="right">492</td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel344" align="right">239 </td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel344" align="right">657 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; State</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">67</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">11 </td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">87 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current taxes</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344" align="right">559</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344" align="right">250 </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344" align="right">744 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">Deferred:</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; Federal</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel344" align="right">281</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel344" align="right">289 </td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel344" align="right">257 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp; State</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">31</td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">49 </td> <td class="excel340"> </td> <td class="excel341"> </td> <td class="excel345" align="right">33 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred taxes</td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel345" align="right">312</td> <td class="excel340"> </td> <td class="excel340"> </td> <td style="border-top-style: none;" class="excel346" align="right">338 </td> <td class="excel340"> </td> <td class="excel340"> </td> <td style="border-top-style: none;" class="excel346" align="right">290 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel340"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel347"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td> <td class="excel340"> </td> <td class="excel340"> </td> <td class="excel344"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel340">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes</td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel361" align="right">871 </td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel361" align="right">588 </td> <td class="excel340"> </td> <td class="excel341">$</td> <td class="excel361" align="right">1,034 </td></tr></table> <p><br /><br /></p> <p align="left">Other current assets includes prepaid income taxes of $<font class="_mt">151</font> million and zero, respectively, on December 31, 2010 and 2009.</p> <p align="left"><strong>Reconciliation of Statutory Rate to Effective Rate</strong></p> <p align="left">The Provision for income taxes in the Consolidated Statements of Income differs from the amounts computed by applying the statutory federal corporate tax rate as follows:</p> <table class="excel381" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 156pt; height: 15pt;" class="excel392" width="208"> </td> <td style="width: 10pt;" class="excel397" width="13"> </td> <td style="width: 102pt;" class="excel403" width="136" colspan="4">2010</td> <td style="width: 29pt;" class="excel403" width="39"> </td> <td style="width: 10pt;" class="excel392" width="13"> </td> <td style="width: 102pt;" class="excel403" width="136" colspan="4">2009</td> <td style="width: 29pt;" class="excel403" width="39"> </td> <td style="width: 10pt;" class="excel392" width="13"> </td> <td style="width: 102pt;" class="excel403" width="136" colspan="4">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">Amount</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">%</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">Amount</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">%</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">Amount</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel394">%</td></tr> <tr style="height: 13.5pt;"><td style="height: 13.5pt;" class="excel392"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel407"> </td> <td class="excel392"> </td> <td class="excel408"> </td> <td class="excel404" colspan="4">($ in millions)</td> <td class="excel408"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel404"> </td> <td class="excel404"> </td> <td class="excel404"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Federal income tax at</td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel399"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">&nbsp; statutory rate</td> <td class="excel393">$</td> <td class="excel395" align="right">828&nbsp;</td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395" align="right">35&nbsp;</td> <td class="excel393"> </td> <td class="excel393">$</td> <td class="excel395" align="right">568&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395" align="right">35&nbsp; </td> <td class="excel392"> </td> <td class="excel393">$</td> <td class="excel395" align="right">963&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395" align="right">35 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">State income taxes, net of</td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel393"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel395"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">&nbsp; federal tax effect</td> <td class="excel392"> </td> <td class="excel395" align="right">62&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">3&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">39&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">2&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">77&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">3 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Deferred tax estimate</td> <td class="excel392"> </td> <td class="excel395" align="right">(34)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">(1)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Medicare Part D</td> <td class="excel392"> </td> <td class="excel395" align="right">27&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">1&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-&nbsp;&nbsp; </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392">Other, net</td> <td class="excel392"> </td> <td class="excel396" align="right">(12)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(1)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(19)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(1)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">(6)</td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel396" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel395"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td> <td class="excel392"> </td> <td class="excel392"> </td> <td class="excel400"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel392">&nbsp;&nbsp;&nbsp; Provision for income taxes</td> <td class="excel393">$</td> <td class="excel401" align="right">871&nbsp;</td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel401" align="right">37&nbsp;</td> <td class="excel393"> </td> <td class="excel393">$</td> <td class="excel401" align="right">588&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel401" align="right">36&nbsp;</td> <td class="excel392"> </td> <td class="excel393">$</td> <td class="excel401" align="right">1,034&nbsp; </td> <td class="excel392"> </td> <td class="excel393"> </td> <td class="excel401" align="right">38 </td></tr></table> <p>During 2010, NS performed a review and re-evaluation of its estimates for deferred tax assets and liabilities, resulting in a reduction of income tax expense of $<font class="_mt">34</font> million.&nbsp;&nbsp;In addition, provisions of the health care legislation enacted during 2010 eliminate, after 2012, the tax deduction available for reimbursed prescription drug expenses under the Medicare Part D retiree drug subsidy program&nbsp;&nbsp;As required by ASC 740, Income Taxes, NS recorded a $<font class="_mt">27</font> million charge to deferred tax expense in 2010.</p> <p><strong>Deferred Tax Assets and Liabilities</strong></p> <p>Certain items are reported in different periods for financial reporting and income tax purposes.&nbsp;&nbsp;Deferred tax assets and liabilities are recorded in recognition of these differences.&nbsp;&nbsp;The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:</p> <table class="excel409" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 284pt; height: 15pt;" class="excel410" width="378"> </td> <td style="width: 20pt;" class="excel410" width="27"> </td> <td style="width: 13pt;" class="excel419" width="17"> </td> <td style="width: 181pt;" class="excel419" width="241" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel412"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel413">2010</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel413">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel412"> </td> <td class="excel420"> </td> <td class="excel420"> </td> <td class="excel420" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">Deferred tax assets:</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Compensation and benefits, including postretirement</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel414" align="right">617&nbsp;</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel414" align="right">661&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Accruals, including casualty and other claims</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">156&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">164&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Other</td> <td class="excel410"> </td> <td class="excel411"> </td> <td style="border-top-style: none;" class="excel416" align="right">50&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel415" align="right">46&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Total gross deferred tax assets</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">823&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">871&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Less valuation allowance</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">(21)</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel414" align="right">(14)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax asset</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel416" align="right">802&nbsp;</td> <td class="excel410"> </td> <td class="excel411"> </td> <td class="excel416" align="right">857&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">Deferred tax liabilities:</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Property</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(7,453)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(7,195)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp; Other</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(292)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(267)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Total gross deferred tax liabilities</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">(7,745)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">(7,462)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel417"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel417"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax liability</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(6,943)</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel414" align="right">(6,605)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp; Net current deferred tax asset</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">145&nbsp;</td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel416" align="right">142&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td> <td class="excel410"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel410">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net long-term deferred tax liability</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel422" align="right">(7,088)</td> <td class="excel410"> </td> <td class="excel411">$</td> <td class="excel422" align="right">(6,747)</td></tr></table> <p>Except for amounts for which a valuation allowance has been provided, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets.&nbsp;&nbsp;The valuation allowance at the end of each year primarily relates to subsidiary state income tax net operating losses that may not be utilized prior to their expiration.&nbsp;&nbsp;The total valuation allowance increased $<font class="_mt">7</font> million in 2010, $<font class="_mt">3</font> million in 2009, and $<font class="_mt">1</font> million in 2008.</p> <p><strong>Uncertain Tax Positions</strong></p> <p>A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:</p> <table class="excel423" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 284pt; height: 15pt;" class="excel424" width="378"> </td> <td style="width: 35pt;" class="excel424" width="47"> </td> <td style="width: 13pt;" class="excel432" width="17"> </td> <td style="width: 180pt;" class="excel432" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel426"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel427">2010</td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel427">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel420" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td> <td class="excel424"> </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Balance at beginning of year</td> <td class="excel424"> </td> <td class="excel425">$</td> <td class="excel428" align="right">94&nbsp;</td> <td class="excel424"> </td> <td class="excel425">$</td> <td class="excel428" align="right">169&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel424"> </td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428"> </td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428"> </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Additions based on tax positions related to the current year</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">51&nbsp;</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">25&nbsp; </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Additions for tax positions of prior years</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">44&nbsp;</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">24&nbsp; </td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Reductions for tax positions of prior years</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(19)</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(85)</td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Settlements with taxing authorities</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(2)</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(22)</td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel424">Lapse of statutes of limitations</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel428" align="right">(16)</td> <td class="excel424"> </td> <td class="excel425"> </td> <td class="excel429" align="right">(17)</td></tr> <tr style="height: 15.75pt;"><td style="font-style: normal; height: 15.75pt;" class="excel424">&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of year</td> <td class="excel424"> </td> <td class="excel425">$</td> <td class="excel430" align="right">152&nbsp;</td> <td class="excel424"> </td> <td class="excel425">$</td> <td style="border-top-style: none;" class="excel430" align="right">94&nbsp; </td></tr></table> <p align="left">Included in the balance of unrecognized tax benefits at December 31, 2010, are potential benefits of $<font class="_mt">92</font> million that would affect the effective tax rate if recognized.&nbsp;&nbsp;Unrecognized tax benefits are adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded.</p> <div align="left"> <p align="left">NS expects that the total amount of unrecognized tax benefits at December 31, 2010, will decrease by approximately $<font class="_mt">34</font> million in 2011 due to tax positions for which there was an uncertainty about the timing of deductibility in earlier years but deductibility may become certain by the the close of 2011.&nbsp;&nbsp;NS' consolidated federal income tax return for 2008 is being audited by the Internal Revenue Service (IRS).&nbsp;&nbsp;NS anticipates that the IRS will complete its examination of the 2008 tax year within the next twelve months.&nbsp;&nbsp;State income tax returns generally are subject to examination for a period of three to four years after filing of the return.&nbsp;&nbsp;In addition, NS is generally obligated to report changes in taxable income arising from federal income tax examinations to the states within a period of up to two years from the date the federal examination is final.&nbsp;&nbsp;NS has various state income tax returns either under examination, administrative appeals, or litigation.&nbsp;&nbsp;It is reasonably possible that the amount of unrecognized tax benefits will decrease in 2011 as a result of the lapse of state statutes of limitations, but the amount is not expected to be significant.&nbsp;&nbsp;NS does not expect that any of the aforementioned potential changes in unrecognized tax benefits will have a material effect on NS' financial position, results of operations, or liquidity.&nbsp;&nbsp;In addition, NS has $<font class="_mt">29</font> million in unrecognized tax benefits for refund claims for prior years raised by NS during 2010 and $<font class="_mt">7</font> million for the same issue for the current year.&nbsp;&nbsp;If resolved favorably, a decrease in these unrecognized tax benefits could reduce income tax expense.</p> <p align="left">Interest related to unrecognized tax benefits, which is included in "Other income &ndash; net," amounted to $<font class="_mt">1</font> million of expense in 2010, $<font class="_mt">6</font> million of income in 2009, and $<font class="_mt">15</font> million of income in 2008.&nbsp;&nbsp;There were no penalties related to tax matters in 2010, 2009, and 2008.&nbsp;&nbsp;NS has recorded a liability of $<font class="_mt">14</font> million at December 31, 2010, and $<font class="_mt">12</font> million at December 31, 2009, for the payment of interest on unrecognized tax benefits.&nbsp;&nbsp;NS has no liability recorded at December 31, 2010 and 2009, for the payment of penalties on unrecognized tax benefits.</p></div></div></div></div></div> </div> 615000000 381000000 602000000 1034000000 588000000 871000000 963000000 568000000 828000000 77000000 39000000 62000000 -269000000 -63000000 41000000 8000000 -72000000 1000000 -262000000 -365000000 126000000 15000000 17000000 15000000 459000000 484000000 477000000 444000000 467000000 462000000 -2000000 5000000 16000000 421000000 458000000 453000000 106000000 108000000 <div> <table class="excel444" border="0" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 284pt; height: 15pt;" class="excel445" width="378"> </td> <td style="width: 20pt;" class="excel445" width="27"> </td> <td style="width: 13pt;" class="excel454" width="17"> </td> <td style="width: 181pt;" class="excel454" width="241" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel447"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel448">2010</td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel448">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel447"> </td> <td class="excel455"> </td> <td class="excel455"> </td> <td class="excel455" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Short-term investments with average remaining maturities:</td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td> <td class="excel445"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Available-for-sale:</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Certificates of deposit, 5 and 12 months, respectively</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">76</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">10 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Corporate bonds, 4 and 6 months, respectively</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">64</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">20</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Commercial paper, 4 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">35</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Federal government bonds, 9 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">-</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">60 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total available-for-sale</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449" align="right">175</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449" align="right">90 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;Held-to-maturity:</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp; Corporate bonds, 10 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">59</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">-</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp; Federal government bonds, 9 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">49</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">-</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total held-to-maturity</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">108</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">-</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total short-term investments</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel453" align="right">283</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel453" align="right">90 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">Long-term investments:</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Equity method investments:</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td> <td class="excel445"> </td> <td class="excel446">&nbsp;</td> <td class="excel449">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Conrail Inc.</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">959</td> <td class="excel445"> </td> <td class="excel446">$</td> <td class="excel449" align="right">924 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;TTX Company</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">363</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">344</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Meridian Speedway LLC</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">268</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">272</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Pan Am Southern LLC</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">140</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">140</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; &nbsp;&nbsp;Other</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">69</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">73</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity method investments</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">1,799</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">1,753</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Company-owned life insurance at net cash</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; surrender value</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">202</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">173 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Federal government notes, held to maturity,</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; with average maturities of&nbsp;20 and 26 months, respectively</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">40</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">45 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Corporate bonds, held to maturity, with</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; average maturities of&nbsp;29 months</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">15</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel449" align="right">56 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp; Other investments</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">137</td> <td class="excel445"> </td> <td class="excel446"> </td> <td class="excel450" align="right">137 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel445">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term investments</td> <td class="excel445"> </td> <td class="excel446">$</td> <td style="border-top-style: none;" class="excel451" align="right">2,193</td> <td class="excel445"> </td> <td class="excel446">$</td> <td style="border-top-style: none;" class="excel451" align="right">2,164 </td></tr></table> </div> 20000000 13000000 12000000 <div> <p align="left"><strong>Investments</strong> </p> <p align="left">Debt securities classified as "held-to-maturity" are reported at amortized cost and marketable equity and debt securities classified as "trading" or "available-for-sale" are recorded at fair value.&nbsp;&nbsp;Unrealized after-tax gains and losses for investments designated as "available-for-sale" are recognized in "Accumulated other comprehensive loss." </p> <p align="left">Investments where NS has the ability to exercise significant influence over but does not control the entity are accounted for using the equity method, whereby the investment is carried at the cost of the acquisition plus NS' equity in undistributed earnings or losses since acquisition.</p> </div> 2684000000 2401000000 2708000000 263000000 228000000 238000000 <div> <div> <p><strong>9.&nbsp;&nbsp;Lease Commitments</strong> </p> <p> </p> <p>NS is committed under long-term lease agreements, which expire on various dates through 2067, for equipment, lines of road and other property.&nbsp;&nbsp;The following amounts do not include payments to CRC under the Shared Assets Areas agreements (see Note 5).&nbsp;&nbsp;Future minimum lease payments and operating lease expense are as follows:</p> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Future Minimum Lease Payments</font></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p> <table class="excel495" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 311pt; height: 15pt;" class="excel496" width="415"> </td> <td style="width: 20pt;" class="excel496" width="27"> </td> <td style="width: 13pt;" class="excel496" width="17"> </td> <td style="width: 66pt;" class="excel504" width="88">Operating</td> <td style="width: 35pt;" class="excel496" width="47"> </td> <td style="width: 13pt;" class="excel496" width="17"> </td> <td style="width: 66pt;" class="excel504" width="88">Capital</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel498"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel499">Leases</td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel499">Leases</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel498"> </td> <td class="excel505"> </td> <td class="excel505"> </td> <td class="excel505" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2011</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel500" align="right">92</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel500" align="right">28&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2012</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">88</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">18&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2013</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">74</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">3&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2014</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">55</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">2&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2015</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">32</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel500" align="right">1&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel507">2016 and subsequent years</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel501" align="right">285</td> <td class="excel496"> </td> <td class="excel497"> </td> <td class="excel501" align="right">2&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel496">&nbsp;&nbsp;&nbsp; Total</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel502" align="right">626</td> <td class="excel496"> </td> <td class="excel497">$</td> <td class="excel500" align="right">54&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel496">Less imputed interest on capital leases at an average rate of <font class="_mt">5</font>%</td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel503" align="right">(2)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel496">&nbsp;&nbsp;&nbsp; Present value of minimum lease payments included in debt</td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel496"> </td> <td class="excel497">$</td> <td style="border-top-style: none;" class="excel506" align="right">52&nbsp;</td></tr></table> <p><strong>Operating Lease Expense</strong></p> <table class="excel508" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 116pt; height: 15pt;" class="excel513" width="154"> </td> <td style="width: 20pt;" class="excel509" width="27"> </td> <td style="width: 13pt;" class="excel509" width="17"> </td> <td style="width: 51pt;" class="excel514" width="68">2010</td> <td style="width: 20pt;" class="excel509" width="26"> </td> <td style="width: 13pt;" class="excel509" width="17"> </td> <td style="width: 51pt;" class="excel514" width="68">2009</td> <td style="width: 20pt;" class="excel509" width="26"> </td> <td style="width: 13pt;" class="excel509" width="17"> </td> <td style="width: 51pt;" class="excel514" width="68">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel513"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel518" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td> <td class="excel509"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel509">Minimum rents</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel510" align="right">159</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel510" align="right">163</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel510" align="right">183</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel509">Contingent rents</td> <td class="excel509"> </td> <td class="excel512"> </td> <td class="excel515" align="right">79</td> <td class="excel509"> </td> <td class="excel512"> </td> <td class="excel510" align="right">65</td> <td class="excel509"> </td> <td class="excel512"> </td> <td class="excel510" align="right">80</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel509">&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel509"> </td> <td class="excel512">$</td> <td style="border-top-style: none;" class="excel516" align="right">238</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel517" align="right">228</td> <td class="excel509"> </td> <td class="excel512">$</td> <td class="excel517" align="right">263</td></tr></table> <p>Contingent rents are primarily comprised of usage-based rent paid to other railroads for joint facility operations.</p></div> </div> 17016000000 17530000000 27369000000 28199000000 1789000000 2082000000 78000000 51000000 75000000 -31000000 1000000 1000000 7053000000 6925000000 6679000000 6567000000 374000000 358000000 6030000000 1000000 445000000 46000000 45000000 <div> <div> <div align="left"> <p align="left"><strong>8.&nbsp;&nbsp;Debt</strong></p> <p align="left">Debt with weighted average interest rates and maturities is presented below:</p> <table class="excel482" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 311pt; height: 15pt;" class="excel483" width="415"> </td> <td style="width: 20pt;" class="excel483" width="27"> </td> <td style="width: 13pt;" class="excel492" width="17"> </td> <td style="width: 180pt;" class="excel492" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel485"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel486">2010</td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel486">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel485"> </td> <td class="excel493"> </td> <td class="excel493"> </td> <td class="excel493" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Notes and debentures:</td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td> <td class="excel483"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">5.88</font>%, maturing to 2014</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel487" align="right">731&nbsp;</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel487" align="right">1,031&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">6.40</font>%, maturing 2016 to 2018</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,650&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,650&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">7.25</font>%, maturing 2019 to 2025</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,264&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,264&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">7.11</font>%, maturing 2027 to 2031</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,290&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1,290&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">7.21</font>%, maturing 2037 and 2043</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">855&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">855&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp; <font class="_mt">6.74</font>%, maturing 2097 and 2105</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">900&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">650&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Securitization borrowings, <font class="_mt">1.54</font>%</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">200&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">200&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Other debt, <font class="_mt">5.25</font>%, maturing to 2024</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">251&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">337&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Discounts and premiums, net</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(116)</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(124)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total debt</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">7,025&nbsp;</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">7,153&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less current maturities and short-term debt</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(458)</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel488" align="right">(474)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt excluding current maturities and short-term debt</td> <td class="excel483"> </td> <td class="excel484">$</td> <td style="border-top-style: none;" class="excel489" align="right">6,567&nbsp;</td> <td class="excel483"> </td> <td class="excel484">$</td> <td style="border-top-style: none;" class="excel489" align="right">6,679&nbsp; </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel483"> </td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel483">Long-term debt maturities subsequent to 2011 as follows:</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2012</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel487" align="right">45</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2013</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">46</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2014</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">445</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2015</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487" align="right">1</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel494">&nbsp;&nbsp; 2016 and subsequent years</td> <td class="excel483"> </td> <td class="excel484"> </td> <td style="border-top-style: none;" class="excel490" align="right">6,030</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel483">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel483"> </td> <td class="excel484">$</td> <td class="excel491" align="right">6,567</td> <td class="excel483"> </td> <td class="excel484"> </td> <td class="excel487"> </td></tr></table> <p>During the third quarter of 2010, NS issued an additional $<font class="_mt">250</font> million of <font class="_mt">6.00</font>% Senior Notes due 2105. </p> <p>During the second quarter of 2009, NS issued $<font class="_mt">500</font> million of unsecured notes at <font class="_mt">5.90</font>% due 2019 pursuant to its automatic shelf registration statement described below.&nbsp;The net proceeds from the offering were approximately $<font class="_mt">496</font> million after deducting the purchase discount and expenses. </p> <p>During the first quarter of 2009, NS issued $<font class="_mt">500</font> million of unsecured notes at <font class="_mt">5.75</font>% due 2016 in a private offering.&nbsp;The net proceeds from the offering were approximately $<font class="_mt">494</font> million after deducting the purchase discount and expenses.&nbsp;During the fourth quarter of 2009, NS exchanged the unregistered securities with essentially identical securities registered under the Securities Act of 1933. </p> <p>NS has in place a $<font class="_mt">350</font> million receivables securitization facility under which NSR sells substantially all of its eligible third-party receivables to an NS subsidiary, which in turn may transfer beneficial interests in the receivables to various commercial paper vehicles.&nbsp;&nbsp;Amounts received under the facility are accounted for as borrowings.&nbsp;&nbsp;Under this facility, NS received and repaid $<font class="_mt">100</font> million in 2010.&nbsp;&nbsp;At December 31, 2010 and 2009, respectively, the amounts outstanding under the facility were $<font class="_mt">200</font> million at an average variable interest rate of <font class="_mt">1.54</font>% and $<font class="_mt">200</font> million at an average variable interest rate of <font class="_mt">2.22</font>%.&nbsp;&nbsp;NS' intent is to refinance $<font class="_mt">100</font> million of these borrowings on a long-term basis, which is supported by its $<font class="_mt">1</font> billion credit agreement (see below).&nbsp;&nbsp;Accordingly, these amounts outstanding are included in the line item "Long-term debt" and the remaining $<font class="_mt">100</font> million outstanding at December 31, 2010 and 2009, respectively, is included in the line item "Short-term debt" in the Consolidated Balance Sheets.&nbsp;&nbsp;The facility has a <font class="_mt">364</font>-day term which was renewed and amended in October 2010 to run until October 2011.&nbsp;&nbsp;During 2009, NS reduced the total amount that can be borrowed from $<font class="_mt">500</font> million to $<font class="_mt">350</font> million to more closely match NS' liquidity requirements and receivables profile.&nbsp;&nbsp;At December 31, 2010 and 2009, the amounts of receivables included in "Accounts receivable &ndash; net" serving as collateral for these borrowings were $<font class="_mt">647</font> million and $<font class="_mt">571</font> million, respectively.</p> <p align="left">The equipment obligations and the capitalized leases are secured by liens on the underlying equipment.&nbsp;&nbsp;Certain lease obligations require the maintenance of yen-denominated deposits, which are pledged to the lessor to satisfy yen-denominated lease payments.&nbsp;&nbsp;These deposits are included in "Other assets" in the Consolidated Balance Sheets and totaled $<font class="_mt">35</font> million at December 31, 2010, and $<font class="_mt">47</font> million at December 31, 2009.</p> <p align="left"><strong>Issuance of Debt or Equity Securities</strong></p> <p align="left">NS has authority from its Board of Directors to issue an additional $<font class="_mt">1</font> billion of debt or equity securities through public or private sale.</p> <p align="left"><strong>Credit Agreement, Debt Covenants, and Commercial Paper</strong></p> <p align="left">NS has in place and available a $<font class="_mt">1</font> billion, five-year credit agreement expiring in 2012, which provides for borrowings at prevailing rates and includes covenants.&nbsp;&nbsp;NS had no amounts outstanding under this facility at December 31, 2010 and 2009, and NS is in compliance with all of the covenants.</p> <p align="left">NS has the ability to issue commercial paper supported by its $<font class="_mt">1</font> billion credit agreement.&nbsp;&nbsp;At December 31, 2010 and 2009, NS had no outstanding commercial paper.</p></div></div> </div> 2164000000 2193000000 956000000 183000000 163000000 159000000 33000000 33000000 43000000 <div> <p align="left"><strong>Description of Business</strong></p> <div align="left"> <p align="left">Norfolk Southern Corporation is a Virginia-based holding company engaged principally in the rail transportation business, operating approximately&nbsp;<font class="_mt">20,000</font> route miles primarily in the East and Midwest.&nbsp;&nbsp;These consolidated financial statements include Norfolk Southern Corporation (Norfolk Southern) and its majority-owned and controlled subsidiaries (collectively, NS).&nbsp;&nbsp;Norfolk Southern's major subsidiary is Norfolk Southern Railway Company (NSR).&nbsp;&nbsp;All significant intercompany balances and transactions have been eliminated in consolidation.</p></div> <p align="left">NSR and its railroad subsidiaries transport raw materials, intermediate products and finished goods classified in the following market groups (percent of total railway operating revenues in 2010):&nbsp; coal <font class="_mt">(<font class="_mt">28</font></font>%); intermodal <font class="_mt">(<font class="_mt">19</font></font>%); agriculture/consumer products/government <font class="_mt">(<font class="_mt">14</font></font>%); chemicals <font class="_mt">(<font class="_mt">14</font></font>%); metals/construction <font class="_mt">(<font class="_mt">11</font></font>%); paper/clay/forest products <font class="_mt">(<font class="_mt">7</font></font>%); and, automotive <font class="_mt">(<font class="_mt">7</font></font>%).&nbsp;&nbsp;Although most of NS' customers are domestic, ultimate points of origination or destination for some of the products transported (particularly coal bound for export and some intermodal containers) may be outside the U.S.&nbsp;&nbsp;More than <font class="_mt">80</font>% of NS' railroad employees are covered by collective bargaining agreements with various labor unions.</p> </div> -1075000000 -31000000 -1427000000 -1228000000 -1451000000 -1456000000 2715000000 1860000000 2714000000 1707000000 1026000000 1488000000 1716000000 1026000000 1488000000 7577000000 6007000000 6840000000 3084000000 383000000 1962000000 468000000 562000000 549000000 555000000 2676000000 733000000 746000000 642000000 626000000 92000000 32000000 55000000 74000000 88000000 285000000 <div> <div> <div> <p align="left"><strong>1.&nbsp;&nbsp;Summary of Significant Accounting Policies</strong></p> <div> <p align="left"><strong>Description of Business</strong></p> <div align="left"> <p align="left">Norfolk Southern Corporation is a Virginia-based holding company engaged principally in the rail transportation business, operating approximately&nbsp;<font class="_mt">20,000</font> route miles primarily in the East and Midwest.&nbsp;&nbsp;These consolidated financial statements include Norfolk Southern Corporation (Norfolk Southern) and its majority-owned and controlled subsidiaries (collectively, NS).&nbsp;&nbsp;Norfolk Southern's major subsidiary is Norfolk Southern Railway Company (NSR).&nbsp;&nbsp;All significant intercompany balances and transactions have been eliminated in consolidation.</p></div> <p align="left">NSR and its railroad subsidiaries transport raw materials, intermediate products and finished goods classified in the following market groups (percent of total railway operating revenues in 2010):&nbsp; coal <font class="_mt">(<font class="_mt">28</font></font>%); intermodal <font class="_mt">(<font class="_mt">19</font></font>%); agriculture/consumer products/government <font class="_mt">(<font class="_mt">14</font></font>%); chemicals <font class="_mt">(<font class="_mt">14</font></font>%); metals/construction <font class="_mt">(<font class="_mt">11</font></font>%); paper/clay/forest products <font class="_mt">(<font class="_mt">7</font></font>%); and, automotive <font class="_mt">(<font class="_mt">7</font></font>%).&nbsp;&nbsp;Although most of NS' customers are domestic, ultimate points of origination or destination for some of the products transported (particularly coal bound for export and some intermodal containers) may be outside the U.S.&nbsp;&nbsp;More than <font class="_mt">80</font>% of NS' railroad employees are covered by collective bargaining agreements with various labor unions.</p></div> <div> <p align="left"><strong>Use of Estimates</strong></p> <p align="left">The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.&nbsp;&nbsp;Management periodically reviews its estimates, including those related to the recoverability and useful lives of assets, as well as liabilities for litigation, environmental remediation, casualty claims, income taxes and pension and other postretirement benefits.&nbsp;&nbsp;Changes in facts and circumstances may result in revised estimates.</p></div> <div> <p align="left"><strong>Revenue Recognition</strong></p> <p align="left">Transportation revenue is recognized proportionally as a shipment moves from origin to destination and related expenses are recognized as incurred.&nbsp;&nbsp;Refunds (which are primarily volume-based incentives) are recorded as a reduction to revenues on the basis of management's best estimate of projected liability, which is based on historical activity, current traffic counts and the expectation of future activity.&nbsp;&nbsp;NS regularly monitors its contract refund liability and, historically, the estimates have not differed significantly from the amounts ultimately refunded.&nbsp;&nbsp; Switching, demurrage and other incidental service revenues are recognized when the services are performed.</p></div> <div> <p align="left"><strong>Derivatives</strong></p> <p align="left">NS does not engage in the trading of derivatives.&nbsp;&nbsp;NS uses derivative financial instruments in the management of its mix of fixed- and floating-rate debt.&nbsp;&nbsp;Management has determined that these derivative instruments qualify as fair-value hedges, having values that highly correlate with the underlying hedged exposures, and has designated such instruments as hedging transactions.&nbsp;&nbsp;Income and expense related to the derivative financial instruments are recorded in the same category as generated by the underlying asset or liability.&nbsp;&nbsp;Credit risk related to the derivative financial instruments is considered to be minimal and is managed by requiring high credit standards for counterparties and periodic settlements (see Note 16).</p></div> <div> <p align="left"><strong>Cash Equivalents</strong></p> <p align="left">"Cash equivalents" are highly liquid investments purchased three months or less from maturity.</p></div> <div> <p align="left"><strong>Allowance for Doubtful Accounts</strong> </p> <p align="left">NS' allowance for doubtful accounts was $<font class="_mt">5</font> million at both December 31, 2010 and 2009.&nbsp;&nbsp;To determine its allowance for doubtful accounts, NS evaluates historical loss experience (which has not been significant), the characteristics of current accounts, and general economic conditions and trends.</p></div> <div> <p align="left"><strong>Materials and Supplies</strong> </p> <p align="left">"Materials and supplies," consisting mainly of fuel oil and items for maintenance of property and equipment, are stated at the lower of average cost or market.&nbsp;&nbsp;The cost of materials and supplies expected to be used in capital additions or improvements is included in "Properties."</p></div> <div> <p align="left"><strong>Investments</strong> </p> <p align="left">Debt securities classified as "held-to-maturity" are reported at amortized cost and marketable equity and debt securities classified as "trading" or "available-for-sale" are recorded at fair value.&nbsp;&nbsp;Unrealized after-tax gains and losses for investments designated as "available-for-sale" are recognized in "Accumulated other comprehensive loss." </p> <p align="left">Investments where NS has the ability to exercise significant influence over but does not control the entity are accounted for using the equity method, whereby the investment is carried at the cost of the acquisition plus NS' equity in undistributed earnings or losses since acquisition.</p></div> <div> <p align="left"><strong>Properties</strong> </p> <p align="left">"Properties" are stated principally at cost and are depreciated using the group method of depreciation whereby assets with similar characteristics, use, and expected lives are grouped together in asset classes and depreciated using a composite depreciation rate.&nbsp;&nbsp;This methodology treats each asset class as a pool of resources, not as singular items.&nbsp;&nbsp;NS uses more than&nbsp;<font class="_mt">60</font> depreciable asset classes.&nbsp;&nbsp;The primary depreciation method for NS' asset base is group life.&nbsp;&nbsp;Units of production is the principal method of depreciation for rail in high density corridors and for depletion of natural resources (see Note 2).&nbsp;&nbsp;Remaining properties are depreciated generally using the straight-line method over the lesser of estimated service or lease lives.&nbsp;&nbsp;Depreciation in the Consolidated Statements of Cash Flows includes both depreciation and depletion. </p> <p align="left">NS' depreciation expense is based on management's assumptions concerning expected service lives of its properties as well as the expected net salvage that will be received upon their retirement.&nbsp;&nbsp;In developing these assumptions, NS' management utilizes periodic depreciation studies that are performed by an independent outside firm of consulting engineers and approved by the Surface Transportation Board ("STB"), the regulatory board that has broad jurisdiction over railroad practices.&nbsp;&nbsp;<font class="_mt">NS' depreciation studies are conducted every three years for equipment and every six years for track assets and other roadway property.</font>&nbsp;&nbsp;The frequency of these studies correlates with guidelines established by the STB.&nbsp; Key factors which are considered in developing average service life and salvage estimates include: </p> <ul> <li>Statistical analysis of historical retirement data and surviving asset records; </li> <li>Review of historical salvage received and current market rates; </li> <li>Review of NS' operations including expected changes in technology, customer demand, maintenance practices and asset management strategies; </li> <li>Review of accounting policies and assumptions; and </li> <li>Industry review and analysis.</li></ul></div></div></div> <p>The units of production depreciation rate for rail in high density corridors is derived based on consideration of annual gross ton miles as compared to the total or ultimate capacity of rail in these corridors.&nbsp;&nbsp;NS' experience has shown that traffic density is a leading factor in determination of the expected service life of rail in high density corridors.&nbsp;&nbsp;In developing the respective depreciation rate, consideration is also given to several rail characteristics including age, weight, condition (new or second hand) and type (curve or tangent).&nbsp;&nbsp;As a result, a composite depreciation rate is developed which is applied to the depreciable base.</p> <p>NS' recent experience with these studies has been that while they do result in changes in the rates used to depreciate its properties, these changes have not caused a significant effect to its annual depreciation expense.&nbsp;&nbsp;Changes in rates as a result of depreciation studies are implemented prospectively.&nbsp;&nbsp;The studies may also indicate that the recorded amount of accumulated depreciation is deficient (or in excess) of the amount indicated by the study.&nbsp;&nbsp;Any such deficiency (or excess) is amortized as a component of depreciation expense over the remaining service lives of the affected class of property, as determined by the study.&nbsp;&nbsp;For 2010, roadway depreciation rates ranged from <font class="_mt">0.83</font>% to <font class="_mt">33.3</font>% and equipment depreciation rates ranged from <font class="_mt">1.32</font>% to <font class="_mt">37.84</font>%.</p> <p>NS capitalizes interest on major capital projects during the period of their construction.&nbsp;&nbsp;Expenditures, including those on leased assets, that extend an assets' useful life or increase its utility, are capitalized.&nbsp;&nbsp;Expenditures capitalized include those that are directly related to a capital project and may include materials, labor and equipment, in addition to an allocable portion of indirect costs that clearly relate to a particular project.&nbsp;&nbsp;Due to the capital intensive nature of the railroad industry, a significant portion of annual capital spending relates to the replacement of self constructed assets.&nbsp;&nbsp;Because removal activities occur in conjunction with replacement, removal costs are estimated based on an average percentage of time employees replacing assets spend on removal functions.&nbsp;&nbsp;Costs related to repairs and maintenance activities that do not extend an asset's useful life or increase its utility are expensed when such repairs are performed.</p> <p>When properties other than land and nonrail assets are sold or retired in the ordinary course of business, the cost of the assets, net of sale proceeds or salvage, is charged to accumulated depreciation, and no gain or loss is recognized in earnings.&nbsp;&nbsp;Actual historical cost values are retired when available, such as with equipment assets.&nbsp;&nbsp;The use of estimates in recording the retirement of certain roadway assets is necessary based on the impracticality of tracking individual asset costs.&nbsp;&nbsp;When retiring rail, ties and ballast, NS uses statistical curves that indicate the relative distribution of the age of the assets retired.&nbsp;&nbsp;The historical cost of other roadway assets is estimated using a combination of inflation indices specific to the rail industry and those published by the U.S. Bureau of Labor Statistics.&nbsp;&nbsp;The indices are applied to the replacement value based on the age of the retired assets.&nbsp;&nbsp;These indices are used because they closely correlate with the costs of roadway assets.&nbsp;&nbsp;Gains and losses on disposal of land and nonrail assets are included in "Other income &ndash; net" (see Note 2) since such income is not a product of NS' railroad operations.</p> <p>A retirement is considered abnormal if it does not occur in the normal course of business, if it relates to disposition of a large segment of an asset class and if the retirement varies significantly from the retirement profile identified through our depreciation studies, which inherently consider the impact of normal retirements on expected service lives and depreciation rates.&nbsp;&nbsp;Gains or losses from abnormal retirements are recognized in earnings.<br /><br />NS reviews the carrying amount of properties whenever events or changes in circumstances indicate that such carrying amount may not be recoverable based on future undiscounted cash flows.&nbsp;&nbsp;Assets that are deemed impaired as a result of such review are recorded at the lower of carrying amount or fair value.</p> <div class="MetaData"> <p align="left"><strong>Required Accounting Changes</strong> </p> <div> <p align="left">In June 2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 168, "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, a replacement of FASB Statement No. 162" (Accounting Standards Update (ASU) 2009-01).&nbsp;&nbsp;This statement, effective for interim and annual periods ending after September 15, 2009, established the FASB Accounting Standards Codification (Codification or ASC) as the single source of authoritative Generally Accepted Accounting Principles (GAAP).&nbsp;&nbsp;SFAS 168 is recognized by the FASB to be applied by nongovernmental entities and stated that all guidance contained in the Codification has an equal level of authority.&nbsp;&nbsp;The authoritative accounting guidance recognized that rules and interpretive releases of the Securities and Exchange Commission (SEC) under federal securities laws are also sources of authoritative GAAP for SEC registrants.&nbsp;&nbsp;NS adopted the provisions of the authoritative accounting guidance for the interim reporting period ending September 30, 2009, the adoption of which did not have a material effect on NS' consolidated financial statements.</p> <p align="left">FASB Staff Position (FSP) No. 132 (R)-1, "Employers' Disclosures about Postretirement Benefit Plan Assets" (ASC 715-20-65-2), was issued on December 30, 2008.&nbsp;&nbsp;The FSP, effective for fiscal years ending after December 15, 2009, clarifies an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan.&nbsp;&nbsp;The FSP prescribes expanded disclosures regarding investment allocation decisions, categories of plan assets, inputs, and valuation techniques used to measure fair value, the effect of Level 3 inputs on changes in plan assets and significant concentrations of risk.&nbsp;&nbsp;NS adopted the FSP at the end of 2009 and it did not have a material effect on NS' consolidated financial statements.</p> <p align="left">Effective January 1, 2008, NS adopted SFAS No. 157, "Fair Value Measurements" (ASC 820), related to financial instrument assets and liabilities.&nbsp;&nbsp;NS adopted the provisions of this standard relative to nonfinancial assets and nonfinancial liabilities that are not remeasured at fair value on a recurring basis in the first quarter of 2009.&nbsp;&nbsp;This statement, effective for interim or annual reporting periods beginning after November 15, 2007, establishes a framework for measuring fair value in U.S. generally accepted accounting principles and expands disclosures about fair value measurements.&nbsp;&nbsp;Adoption did not have a material effect on NS' consolidated financial statements.</p> <p align="left">In December 2007, the FASB issued SFAS No. 160 (SFAS 160), "Noncontrolling Interests in Consolidated Financial Statements" (ASC 810-10), which requires that noncontrolling (minority) interests be reported as a component of equity.&nbsp;&nbsp;NS adopted the statement in the first quarter of 2009 with no material effect on NS' consolidated financial statements.</p> <p align="left">In June 2008, the FASB issued FSP Emerging Issues Task Force (EITF) 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities" (ASC 260-10).&nbsp;&nbsp;This FSP addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method as described in SFAS No. 128, "Earnings per Share" (ASC 260-10).&nbsp;&nbsp;NS adopted the FSP, which affects the calculation of earnings per share, in the first quarter of 2009.&nbsp;&nbsp;The provisions of the FSP were applied retrospectively, but did not have a material effect on NS' consolidated financial statements.</p></div></div> <p align="left">&nbsp;</p> </div> 19000000 17000000 180000000 159000000 88000000 240000000 316000000 304000000 -3000000 29000000 -26000000 -543000000 -543000000 89000000 89000000 48000000 48000000 38000000 64000000 -29000000 -28000000 -21000000 137000000 137000000 232000000 244000000 <div> <div align="left"> <div> <p><strong>10.&nbsp;&nbsp;Other Liabilities</strong></p> <table class="excel519" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 280pt; height: 15pt;" class="excel520" width="373"> </td> <td style="width: 20pt;" class="excel520" width="27"> </td> <td style="width: 13pt;" class="excel528" width="17"> </td> <td style="width: 180pt;" class="excel528" width="240" colspan="4">December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel522"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel523">2010</td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel523">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel522"> </td> <td class="excel529"> </td> <td class="excel529"> </td> <td class="excel529" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td> <td class="excel520"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Retiree health and death benefit obligations (Note 11)</td> <td class="excel520"> </td> <td class="excel521">$</td> <td class="excel524" align="right">849</td> <td class="excel520"> </td> <td class="excel521">$</td> <td class="excel524" align="right">829 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Casualty and other claims (Note 17)</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">261</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">265 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Net pension obligations (Note 11)</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">185</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">170 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Long-term advances from Conrail (Note 5)</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">133</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">133 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Deferred compensation</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">124</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">130 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Federal and state income taxes</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">82</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel524" align="right">94 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel520">Other</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel525" align="right">159</td> <td class="excel520"> </td> <td class="excel521"> </td> <td class="excel525" align="right">180 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel520">&nbsp; &nbsp;&nbsp;&nbsp;Total</td> <td class="excel520"> </td> <td class="excel521">$</td> <td style="border-top-style: none;" class="excel526" align="right">1,793</td> <td class="excel520"> </td> <td class="excel521">$</td> <td style="border-top-style: none;" class="excel526" align="right">1,801 </td></tr></table></div></div> </div> 1801000000 1793000000 337000000 251000000 110000000 127000000 153000000 -307000000 -30000000 -421000000 1128000000 863000000 456000000 500000000 514000000 86000000 266000000 504000000 1558000000 1299000000 1470000000 <div> <div> <p align="left"><strong>11.&nbsp;&nbsp;Pensions and Other Postretirement Benefits</strong></p> <p align="left">Norfolk Southern and certain subsidiaries have both funded and unfunded defined benefit pension plans covering principally salaried employees.&nbsp;&nbsp;Norfolk Southern and certain subsidiaries also provide specified health care and death benefits to eligible retired employees and their dependents.&nbsp;&nbsp;Under the present plans, which may be amended or terminated at NS' option, a defined percentage of health care expenses is covered, reduced by any deductibles, co-payments, Medicare payments, and in some cases, coverage provided under other group insurance policies.</p> <p align="left"><strong>Pension and Other Postretirement Benefit Obligations and Plan Assets</strong></p> <table class="excel530" border="0" cellspacing="0" cellpadding="0"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel531" width="297">&nbsp;</td> <td style="width: 10pt;" class="excel531" width="15">&nbsp;</td> <td style="width: 56pt;" class="excel531" width="77">&nbsp;</td> <td style="width: 14pt;" class="excel531" width="21">&nbsp;</td> <td style="width: 10pt;" class="excel531" width="15">&nbsp;</td> <td style="width: 56pt;" class="excel531" width="77">&nbsp;</td> <td style="width: 29pt;" class="excel531" width="41">&nbsp;</td> <td style="width: 10pt;" class="excel531" width="15">&nbsp;</td> <td class="excel541" colspan="4">Other Postretirement</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel536">&nbsp;</td> <td class="excel541" colspan="4">Pension Benefits</td> <td class="excel541">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel541" colspan="4">Benefits</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel533">2010</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel533">2009</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel533" width="81">2010</td> <td class="excel531" width="27">&nbsp;</td> <td class="excel531" width="31">&nbsp;</td> <td class="excel533" width="81">2009</td></tr> <tr style="height: 13.5pt;"><td style="height: 13.5pt;" class="excel531">&nbsp;</td> <td class="excel545">&nbsp;</td> <td class="excel542" colspan="10">($ in millions)</td></tr> <tr style="height: 13.5pt;"><td style="height: 13.5pt;" class="excel531">&nbsp;</td> <td class="excel545">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td> <td class="excel542">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel546">Change in benefit obligations</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel538">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Benefit obligation at beginning of year</td> <td class="excel532">$</td> <td class="excel534" align="right">1,696&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">1,670&nbsp; </td> <td class="excel532">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">1,044&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">920&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Service cost</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">26&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">26&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">16&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">&nbsp;</td> <td class="excel534" align="right">16&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Interest cost</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">96&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">101&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">61&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">57&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Actuarial losses</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">108&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">8&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">10&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">106&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Benefits paid</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(113)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(109)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(49)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(55)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit obligation at end of year</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,813&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,696&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,082&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,044&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel546">Change in plan assets</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Fair value of plan assets at beginning of year</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">1,542&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">1,333&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">161&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">138&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Actual return on plan assets</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">216&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">307&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">17&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">23&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Employer contribution</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">111&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">11&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">49&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">55&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Benefits paid</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(113)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(109)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(49)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(55)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets at end of year</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,756&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">1,542&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">178&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">161&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel536">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funded status at end of year</td> <td class="excel532">$</td> <td class="excel544" align="right">(57)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(154)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(904)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(883)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Amounts recognized in the Consolidated</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp; Balance Sheets consist of:</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Noncurrent assets</td> <td class="excel532">$</td> <td class="excel534" align="right">140&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">27&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">(12)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">(11)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel534" align="right">(55)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539" align="right">(54)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Noncurrent liabilities</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(185)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(170)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(849)</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel540" align="right">(829)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel536">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amount recognized</td> <td class="excel532">$</td> <td class="excel544" align="right">(57)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(154)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(904)</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel544" align="right">(883)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">Amounts recognized in accumulated other</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp; comprehensive loss (pretax) consist of:</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel539">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Net loss</td> <td class="excel532">$</td> <td class="excel534" align="right">807&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">821&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">370&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel539" align="right">414&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel531">&nbsp;&nbsp;&nbsp;&nbsp; Prior service cost</td> <td class="excel532">$</td> <td class="excel534" align="right">7&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel539" align="right">10&nbsp; </td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-&nbsp;</td> <td class="excel531">&nbsp;</td> <td class="excel532">$</td> <td class="excel534" align="right">-&nbsp;</td></tr></table><strong> </strong> <div align="left"> <p>NS' accumulated benefit obligation for its defined benefit pension plans is $<font class="_mt">1.7</font> billion and $<font class="_mt">1.6</font> billion at December 31, 2010 and 2009, respectively.&nbsp;&nbsp;NS' unfunded pension plans, included above, which in all cases have no assets and therefore have an accumulated benefit obligation in excess of plan assets, had projected benefit obligations of $<font class="_mt">197</font> million at December 31, 2010, and $<font class="_mt">181</font> million at December 31, 2009, and had accumulated benefit obligations of $<font class="_mt">177</font> million at December 31, 2010, and $<font class="_mt">159</font> million at December 31, 2009.</p></div> <p align="left"><strong>Pension and Other Postretirement Benefit Cost Components</strong></p> <table class="excel547" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 168pt; height: 15pt;" class="excel550" width="224">&nbsp;</td> <td style="width: 20pt;" class="excel548" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel548" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel551" width="68">2010</td> <td style="width: 20pt;" class="excel548" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel548" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel551" width="68">2009</td> <td style="width: 20pt;" class="excel548" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel548" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel551" width="68">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel550">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel555" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel556">Pension benefits</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Service cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">26&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">26&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">25&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Interest cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">96&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">101&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">99&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Expected return on plan assets</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(142)</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(154) </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(173) </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of net losses</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">48&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">25&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">7&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of prior service cost </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel553" align="right">3&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">3&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">3&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="MetaData">&nbsp;&nbsp;&nbsp;&nbsp; Net cost (benefit)</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">31&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">1&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">(39)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel552">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel552">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel552">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel556">Other postretirement benefits</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel548">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Service cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">16&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">16&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel552" align="right">16&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548"><font style="height: 15pt;" class="_mt">Interest cost</font></td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">61&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">57&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">51&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Expected return on plan assets</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(15)</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(15)</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(15)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of net losses</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">52&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">35&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">25&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel548">Amortization of prior service cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel553" align="right">-&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(2) </td> <td class="excel548">&nbsp;</td> <td class="excel549">&nbsp;</td> <td class="excel552" align="right">(8) </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel548">&nbsp;&nbsp;&nbsp;&nbsp; Net cost</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">114&nbsp;</td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">91&nbsp; </td> <td class="excel548">&nbsp;</td> <td class="excel549">$</td> <td class="excel554" align="right">69&nbsp; </td></tr></table> <p align="left">&nbsp;</p> <p align="left"><strong>Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss</strong></p> <table class="excel557" cellspacing="0" cellpadding="0"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="height: 15pt;"><td style="width: 280pt; height: 15pt;" class="excel558" width="375">&nbsp;</td> <td style="width: 20pt;" class="excel558" width="29">&nbsp;</td> <td style="width: 13pt;" class="excel566" width="19">&nbsp;</td> <td style="width: 208pt;" class="excel566" colspan="4"><u>2010</u></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel566">&nbsp;</td> <td class="excel566" width="122">&nbsp;</td> <td class="excel566" width="9">&nbsp;</td> <td class="excel566" width="22">&nbsp;</td> <td class="excel566" width="121">Other</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel566">&nbsp;</td> <td class="excel566">Pension</td> <td class="excel566">&nbsp;</td> <td class="excel566">&nbsp;</td> <td class="excel566">Postretirement</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel560">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel561">Benefits</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel561">Benefits</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel560">&nbsp;</td> <td class="excel567">&nbsp;</td> <td class="excel567">&nbsp;</td> <td class="excel567" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel558">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">Net loss arising during the year</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel562" align="right">34&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel562" align="right">8&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">Amortization of net losses</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562" align="right">(48)</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562" align="right">(52)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel558">Amortization of prior service cost</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel563" align="right">(3)</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel563" align="right">-&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel558">&nbsp;&nbsp; Total recognized in other comprehensive income</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel564" align="right">(17)</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel564" align="right">(44)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel558">&nbsp;&nbsp; Total recognized in net periodic cost</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562">&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel559">&nbsp;</td> <td class="excel562">&nbsp;</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel558">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and other comprehensive income</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel565" align="right">14&nbsp;</td> <td class="excel558">&nbsp;</td> <td class="excel559">$</td> <td class="excel565" align="right">70&nbsp;</td></tr></table> <p align="left">The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic cost over the next year are $<font class="_mt">67</font> million and $<font class="_mt">3</font> million, respectively.&nbsp;&nbsp;The estimated net loss for the other defined benefit postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next year is &nbsp;$<font class="_mt">45</font> million.</p> <p align="left"><strong>Pension and Other Postretirement Benefit Assumptions</strong></p> <p align="left">Pension and other postretirement benefit costs are determined based on actuarial valuations that reflect appropriate assumptions as of the measurement date, ordinarily the beginning of each year.&nbsp;&nbsp;The funded status of the plans is determined using appropriate assumptions as of each year end.&nbsp;&nbsp;A summary of the major assumptions follows:</p> <table class="excel568" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 188pt; height: 15pt;" class="excel571" width="251">&nbsp;</td> <td style="width: 20pt;" class="excel569" width="27">&nbsp;</td> <td style="width: 13pt;" class="excel569" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel572" width="68"> <div align="right">2010</div></td> <td style="width: 20pt;" class="excel569" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel569" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel572" width="68"> <div align="right">2009</div></td> <td style="width: 20pt;" class="excel569" width="26">&nbsp;</td> <td style="width: 13pt;" class="excel569" width="17">&nbsp;</td> <td style="width: 51pt;" class="excel572" width="68"> <div align="right">2008</div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel571">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel574" colspan="7">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Pension funded status:</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Discount rate</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.25%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Future salary increases</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Other postretirement benefits funded status:</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="font-style: normal; height: 15pt;" class="excel573"><font style="height: 15pt;" class="_mt">&nbsp;&nbsp;&nbsp;Discount rate</font></td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.4%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Pension cost:</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Discount rate</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Return on assets in plans</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">8.75%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">8.75%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel580" align="right">9%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Future salary increases</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">4.5%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel573">Other postretirement benefits cost:</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel577">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel577">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel569">&nbsp;</td> <td class="excel577">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Discount rate</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">5.85%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">6.25%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel569">&nbsp;&nbsp;&nbsp;Return on assets in plans</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel576" align="right">8.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">8.5%</td> <td class="excel569">&nbsp;</td> <td class="excel570">&nbsp;</td> <td class="excel579" align="right">8.5%</td></tr></table> <p align="left">To determine the discount rates, NS utilized analyses in which the projected annual cash flows from the pension and postretirement benefit plans were matched with yield curves based on an appropriate universe of high-quality corporate bonds.&nbsp;&nbsp;NS used the results of the yield curves to select the discount rates that match the payment streams of the benefits in each of these plans.</p> <p align="left"><strong>Health Care Cost Trend Assumptions</strong></p> <p align="left">For measurement purposes at December 31, 2010, increases in the per capita cost of covered health care benefits were assumed to be <font class="_mt">8.5</font>% for 2010 and <font class="_mt">8.1</font>% for 2011.&nbsp;&nbsp;It is assumed the rate will decrease gradually to an ultimate rate of <font class="_mt">5</font>% for 2019 and remain at that level thereafter.</p> <p align="left">Assumed health care cost trend rates have a significant effect on the amounts reported in the consolidated financial statements.&nbsp;&nbsp;To illustrate, a one-percentage-point change in the assumed health care cost trend would have the following effects:</p> <table class="excel581" cellspacing="0" cellpadding="0"> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel582" width="305">&nbsp;</td> <td style="width: 20pt;" class="excel582" width="29">&nbsp;</td> <td style="width: 13pt;" class="excel587" width="19">&nbsp;</td> <td style="width: 208pt;" class="excel587" colspan="4">One percentage point</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel584">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel585" width="75">Increase</td> <td class="excel582" width="15">&nbsp;</td> <td class="excel582" width="15">&nbsp;</td> <td class="excel585" width="75">Decrease</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel584">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel584">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td> <td class="excel588">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel582">Increase (decrease) in:</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td> <td class="excel582">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel582">&nbsp;&nbsp; Total service and interest cost components</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">11</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">(9)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel582">&nbsp;&nbsp; Postretirement benefit obligation</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">143</td> <td class="excel582">&nbsp;</td> <td class="excel583">$</td> <td class="excel586" align="right">(118)</td></tr></table> <p align="left"><strong>Asset Management</strong></p> <div align="left"> <p align="left">Ten investment firms manage NS' defined benefit pension plan's assets under investment guidelines approved by the Board of Directors prior to 2011 and, effective for 2011, approved by a management committee.&nbsp;&nbsp;Investments are restricted to domestic fixed income securities, international fixed income securities, domestic and international equity investments, and unleveraged exchange-traded options and financial futures.&nbsp;&nbsp;Limitations restrict investment concentration and use of certain derivative investments.&nbsp;&nbsp;The target asset allocation for equity is <font class="_mt">75</font>% of the pension plan's assets.&nbsp;&nbsp;The fixed income portfolio is invested in the Barclay's Government/Credit Bond Index Fund, except that the Canadian earmarked portion of the Fund is maintained in U.S. Treasury Bonds.&nbsp;&nbsp;Equity investments must be in liquid securities listed on national exchanges.&nbsp;&nbsp;No investment is permitted in the securities of Norfolk Southern or its subsidiaries (except through commingled pension trust funds).&nbsp;&nbsp;Investment managers' returns are expected to meet or exceed selected market indices by prescribed margins.</p> <div align="left"> <p align="left">NS' pension plan weighted-average asset allocations, by asset category, were as follows:</p> <table class="excel589" cellspacing="0" cellpadding="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="height: 15pt;"><td style="width: 206pt; height: 15pt;" class="excel590" width="274"> </td> <td style="width: 20pt;" class="excel590" width="27"> </td> <td style="width: 13pt;" class="excel594" width="17"> </td> <td style="width: 160pt;" class="excel594" width="214" colspan="4">Percentage of plan</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel592"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel594" colspan="4">assets at December 31,</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel596">&nbsp;</td> <td class="excel595"> </td> <td class="excel595"> </td> <td class="excel593">2010</td> <td class="excel595"> </td> <td class="excel595"> </td> <td class="excel593">2009</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td> <td class="excel590"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">Domestic equity securities</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">54%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">64%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">International equity securities</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">12%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">12%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">Debt securities</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">21%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel597" align="right">23%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel590">Cash and cash equivalents</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel598" align="right">13%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td class="excel598" align="right">1%</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel590">&nbsp;&nbsp; Total</td> <td class="excel590"> </td> <td class="excel591"> </td> <td style="border-top-style: none;" class="excel599" align="right">100%</td> <td class="excel590"> </td> <td class="excel591"> </td> <td style="border-top-style: none;" class="excel599" align="right">100%</td></tr></table></div></div> <div align="left">&nbsp;</div> <div align="left"> <div align="left">The postretirement benefit plan assets consist primarily of trust-owned variable life insurance policies with an asset allocation at December 31, 2010, of <font class="_mt">58</font>% in equity securities and <font class="_mt">42</font>% in debt securities compared with <font class="_mt">57</font>% in equity securities and <font class="_mt">43</font>% in debt securities at December 31, 2009.&nbsp;&nbsp;The target asset allocation for equity is between <font class="_mt">50</font>% and <font class="_mt">75</font>% of the plan's assets. <div align="left"> <p align="left">The plans' assumed future returns are based principally on the asset allocations and historic returns for the plans' asset classes determined from both actual plan returns and, over longer time periods, market returns for those asset classes.&nbsp;&nbsp;The expected long-term rate of return on plan assets is applied to a calculated value of plan assets that recognizes changes in fair value over a three-year period.&nbsp;&nbsp;NS assumed a rate of return on pension plan assets of <font class="_mt">8.75</font>% for 2010 and 2009, and <font class="_mt">9</font>% for 2008.&nbsp;&nbsp;For 2011, NS assumes an <font class="_mt">8.75</font>% return on pension plan assets.&nbsp;&nbsp;A one percentage point change to the rate of return assumption would result in a $<font class="_mt">16</font> million change to the net pension cost and, as a result, an equal change in "Compensation and benefits" expense.</p></div></div></div> <p align="left"><strong>Fair Value of Plan Assets</strong></p> <p align="left">Following is a description of the valuation methodologies used for pension plan assets measured at fair value.</p> <blockquote> <p align="left">Interest bearing cash:&nbsp;&nbsp;Short-term bills or notes are valued at an estimated price at which a dealer would pay for the security at year end using observable market based inputs; money market funds are valued at the closing price reported on the active market on which the funds are traded.</p> <p align="left">United States Government and agencies securities:&nbsp;&nbsp;Valued at an estimated price at which a dealer would pay for a security at year end using observable as well as unobservable market based inputs.&nbsp;&nbsp;Inflation adjusted instruments utilize the appropriate index factor.</p> <p align="left">Municipal bonds:&nbsp;&nbsp;Valued at an estimated price at which a dealer would pay for a security at year end using observable market based inputs.</p> <p align="left">Corporate bonds and other fixed income instruments:&nbsp;&nbsp;When available, valued at an estimated price at which a dealer would pay for a similar security at year end using observable market inputs.&nbsp;&nbsp;Otherwise, valued at an estimated price at which a dealer would pay for a similar security at year end using unobservable market inputs.</p> <p align="left">Common stock:&nbsp;&nbsp;Shares held by the plan at year end are valued at the official closing price as defined by the exchange or at the most recent trade price of a security at the close of the active market.</p> <p align="left">Commingled funds:&nbsp;&nbsp;Valued at the net asset value (NAV) of shares held by the plan at year end, based on the quoted market prices of the underlying assets of the funds.&nbsp;&nbsp;The investments are valued using NAV as a practical expedient for fair value.&nbsp;&nbsp;The commingled funds hold equity securities.</p> <p align="left">Preferred stock:&nbsp;&nbsp; Shares held by the plan at year end are valued at the most recent trade price of a security at the close of the active market or at an estimated price at which a dealer would pay for a similar security at year end using observable as well as unobservable market-based inputs.</p> <p align="left">Common collective trusts:&nbsp;&nbsp;Valued at the NAV of shares held by the plan at year end, based on the quoted market prices of the underlying assets of the trusts.&nbsp;&nbsp;The investments are valued using NAV as a practical expedient for fair value.&nbsp;&nbsp;The common collective trusts hold equity securities, fixed income securities and cash and cash equivalents. </p> <p align="left">The following table sets forth the pension plan assets by valuation technique level, within the fair value hierarchy (there were no level 3 valued assets).</p> <div class="MetaData" align="left"> <p align="left"><strong>December 31, 2010</strong> </p> <table class="excel601" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 225pt; height: 15pt;" class="excel604" width="251"> </td> <td style="width: 20pt;" class="excel602" width="27"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 1</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 2</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Total</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common stock</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">963</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">963</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common collective trusts</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">521</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">521</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Interest bearing cash</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">220</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">220</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Commingled funds</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">48</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">48</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">U.S. government and agencies securities</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">3</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">3</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Preferred stock</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel607" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel607" align="right">1</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel607" align="right">1</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel602">&nbsp;&nbsp;&nbsp;&nbsp; Total investments</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">1,183</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">573</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">1,756</td></tr></table> <p align="left">&nbsp;</p> <p align="left"><strong>December 31, 2009</strong> </p> <table class="excel601" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 225pt; height: 15pt;" class="excel602" width="251"> </td> <td style="width: 20pt;" class="excel602" width="27"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 1</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Level 2</td> <td style="width: 20pt;" class="excel602" width="26"> </td> <td style="width: 13pt;" class="excel602" width="17"> </td> <td style="width: 51pt;" class="excel605" width="68">Total</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610" colspan="7">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel604"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td> <td class="excel610"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common stock</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">839</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel606" align="right">839</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Common collective trusts</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">385</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">385</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Corporate bonds and other fixed income securities</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606">170</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606">170</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">U.S. government and agencies securities</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">78</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">78</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Commingled funds</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">42</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608" align="right">42</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Interest bearing cash</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">23</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">-</td> <td class="excel602"> </td> <td class="excel603"> </td> <td class="excel606" align="right">23</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602">Other bonds and securities</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel607" align="right">-</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel607" align="right">5</td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel607" align="right">5</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel602"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel608"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td> <td class="excel602"> </td> <td class="excel602"> </td> <td class="excel606"> </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel602">&nbsp;&nbsp;&nbsp;&nbsp; Total investments</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">862</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">680</td> <td class="excel602"> </td> <td class="excel603">$</td> <td class="excel609" align="right">1,542</td></tr></table></div></blockquote> <div align="left"> <p align="left">Common collective trust investments included debt securities of approximately $<font class="_mt">361</font> million and $<font class="_mt">100</font> million at December 31, 2010 and 2009, respectively, international equity securities of approximately $<font class="_mt">160</font> million and $<font class="_mt">141</font> million at December 31, 2010 and 2009, respectively, and domestic equity securities of&nbsp;<font class="_mt">zero</font> and $<font class="_mt">144</font> million at December 31, 2010 and 2009, respectively.</p></div> <p align="left">Following is a description of the valuation methodologies used for postretirement benefit plan assets measured at fair value.</p> <blockquote> <p align="left">Trust-owned life insurance:&nbsp;&nbsp;valued at NS' share of the net assets of trust-owned life insurance issued by a major insurance company.&nbsp;&nbsp;The underlying investments of that trust consist of a U.S. stock account, and a U.S. bond account, valued based upon the aggregate market values of the underlying investments.&nbsp;&nbsp;The loan asset account is valued at cash surrender value at the time of the loan, plus accrued interest.</p></blockquote> <p align="left">The postretirement benefit plan assets consisted of trust-owned life insurance with fair values of $<font class="_mt">178</font> million and $<font class="_mt">161</font> million at December 31, 2010 and 2009, respectively, and are valued under level 2 of the fair value hierarchy.&nbsp;&nbsp;There were no level 1 or level 3 related assets.</p> <p align="left">The methods used to value pension and postretirement benefit plan assets may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.&nbsp;&nbsp;Furthermore, while NS believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.</p> <p align="left"><strong>Contributions and Estimated Future Benefit Payments</strong></p> <div align="left"> <p align="left">In 2011, NS expects to contribute approximately $<font class="_mt">12</font> million to its unfunded pension plans for payments to pensioners and $<font class="_mt">55</font> million to its other postretirement benefit plans for retiree health benefits.&nbsp;&nbsp;NS does not expect to contribute to its funded pension plan in 2011.&nbsp;&nbsp;In 2010, NS made a voluntary contribution to its funded pension plan of $<font class="_mt">100</font> million.</p></div> <p align="left">Benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:</p> <blockquote> </blockquote> <blockquote> </blockquote> <table class="excel611" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 227pt; height: 15pt;" class="excel612" width="305">&nbsp;</td> <td style="width: 20pt;" class="excel612" width="29">&nbsp;</td> <td style="width: 13pt;" class="excel612" width="19">&nbsp;</td> <td style="width: 80pt;" class="excel612" width="109">&nbsp;</td> <td style="width: 35pt;" class="excel612" width="49">&nbsp;</td> <td style="width: 13pt;" class="excel612" width="19">&nbsp;</td> <td style="width: 80pt;" class="excel618" width="109">Other</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel618">Pension</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel618">Postretirement</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel614">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel615">Benefits</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel615">Benefits</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel614">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619" colspan="4">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel614">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td> <td class="excel619">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2011</td> <td class="excel612">&nbsp;</td> <td class="excel613">$</td> <td class="excel617" align="right">116</td> <td class="excel612">&nbsp;</td> <td class="excel613">$</td> <td class="excel617" align="right">55</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2012</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">119</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">57</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2013</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">122</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">59</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2014</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">124</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">61</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel620">2015</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">126</td> <td class="excel612">&nbsp;</td> <td class="excel613">&nbsp;</td> <td class="excel616" align="right">64</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel612">Years 2016 - 2020</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel617" align="right">650</td> <td class="excel612">&nbsp;</td> <td class="excel612">&nbsp;</td> <td class="excel617" align="right">352</td></tr></table> <p align="left">The other postretirement benefits payments include an estimated average annual reduction due to the Medicare Part D subsidy of approximately $<font class="_mt">6</font> million.</p> <p align="left"><strong>Other Postretirement Coverage</strong></p> <p align="left">Under collective bargaining agreements, NS and certain subsidiaries participate in a multi-employer benefit plan, which provides certain postretirement health care and life insurance benefits to eligible union employees.&nbsp;&nbsp;Premiums under this plan are expensed as incurred and amounted to $<font class="_mt">43</font> million in 2010, and $<font class="_mt">33</font> million in both 2009 and 2008.</p> <p align="left"><strong>Section 401(k) Plans</strong></p> <p align="left">Norfolk Southern and certain subsidiaries provide Section 401(k) savings plans for employees.&nbsp;&nbsp;Under the plans, NS matches a portion of employee contributions, subject to applicable limitations.&nbsp;&nbsp;NS' matching contributions, recorded as an expense, under these plans were $<font class="_mt">15</font> million in 2010, $<font class="_mt">16</font> million in 2009, and &nbsp;$<font class="_mt">15</font> million in 2008.</p></div> </div> 0 151000000 6000000 1425000000 1090000000 350000000 494000000 496000000 225000000 109000000 84000000 97000000 229000000 66000000 89000000 1716000000 1716000000 177000000 1034000000 1034000000 247000000 303000000 307000000 257000000 1496000000 1496000000 392000000 445000000 402000000 <div> <p align="left"><strong>6.&nbsp;&nbsp;Properties</strong></p> <p align="left">&nbsp;</p> <table class="excel433" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434" width="190"> </td> <td class="excel439" width="23"> </td> <td class="excel441" width="100">&nbsp;</td> <td class="excel441" width="23"> </td> <td class="excel441" width="23"> </td> <td class="excel441" width="110">Accumulated</td> <td class="excel441" width="23"> </td> <td class="excel434" width="23"> </td> <td class="excel441" width="110">Net Book</td> <td class="excel441" width="23"> </td> <td class="excel441" width="90">Depreciation</td></tr> <tr style="height: 15pt;"><td class="excel434">As of December 31, 2010</td> <td class="excel434"> </td> <td class="excel448">Cost</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Depreciation</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Value</td> <td class="excel434"> </td> <td class="excel441"><u>Rate</u>^(a)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434"> </td> <td class="excel434"> </td> <td class="excel455" colspan="9">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434"> </td> <td class="excel434"> </td> <td class="excel4401"> </td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel4401"> </td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel4401"> </td> <td class="excel434"> </td> <td class="excel4401"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Land</td> <td class="excel435">$</td> <td class="excel437" align="right">2,206&nbsp;</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel435"> </td> <td class="excel435">$</td> <td class="excel437" align="right">2,206&nbsp; </td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Roadway:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Rail and other track material</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">5,253</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,549)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,704</td> <td class="excel434"> </td> <td class="excel437" align="right">3.08%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ties</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,846</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(955)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,891</td> <td class="excel434"> </td> <td class="excel437" align="right">3.31%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ballast</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,909</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(372)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,537</td> <td class="excel434"> </td> <td class="excel437" align="right">2.78%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">169</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">169</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other roadway</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">10,765</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(2,619)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">8,146</td> <td class="excel434"> </td> <td class="excel437" align="right">2.39%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total roadway</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">21,942</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(5,495)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">16,447</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Equipment:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Locomotives</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">4,020</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,571)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,449</td> <td class="excel434"> </td> <td class="excel437" align="right">3.03%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Freight cars</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,779</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,383)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,396</td> <td class="excel434"> </td> <td class="excel437" align="right">2.34%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Computers</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">376</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(299)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">77</td> <td class="excel434"> </td> <td class="excel437" align="right">8.28%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">143</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">143</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other equipment</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">558</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(259)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">299</td> <td class="excel434"> </td> <td class="excel437" align="right">4.57%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total equipment</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">7,876</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(3,512)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">4,364</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Other property</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">469</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(255)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">214</td> <td class="excel434"> </td> <td class="excel437" align="right">1.48%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total properties</td> <td class="excel435">$</td> <td class="excel451" align="right">32,493</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">(9,262)</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">23,231</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr></table> <p align="left">&nbsp;</p> <p align="left"> </p> <table class="excel433" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434" width="190"> </td> <td class="excel439" width="23"> </td> <td class="excel441" width="100">&nbsp;</td> <td class="excel441" width="23"> </td> <td class="excel441" width="23"> </td> <td class="excel441" width="110">Accumulated</td> <td class="excel441" width="23"> </td> <td class="excel434" width="23"> </td> <td class="excel441" width="110">Net Book</td> <td class="excel441" width="23"> </td> <td class="excel441" width="90">Depreciation</td></tr> <tr style="height: 15pt;"><td class="excel434">As of December 31, 2009</td> <td class="excel434"> </td> <td class="excel448">Cost</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Depreciation</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Value</td> <td class="excel434"> </td> <td class="excel441"><u>Rate</u>^(a)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434"> </td> <td class="excel434"> </td> <td class="excel455" colspan="9">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Land</td> <td class="excel435">$</td> <td class="excel437" align="right">2,181&nbsp;</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel435"> </td> <td class="excel435">$</td> <td class="excel437" align="right">2,181&nbsp; </td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Roadway:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Rail and other track material</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">5,029</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,455)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,574</td> <td class="excel434"> </td> <td class="excel437" align="right">3.11%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ties</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,710</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(907)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,803</td> <td class="excel434"> </td> <td class="excel437" align="right">3.30%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ballast</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,812</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(341)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,471</td> <td class="excel434"> </td> <td class="excel437" align="right">2.77%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">174</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">174</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other roadway</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">10,324</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(2,405)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">7,919</td> <td class="excel434"> </td> <td class="excel437" align="right">2.30%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total roadway</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">21,049</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(5,108)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">15,941</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Equipment:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Locomotives</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,927</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,516)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,411</td> <td class="excel434"> </td> <td class="excel437" align="right">3.46%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Freight cars</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,828</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,357)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,471</td> <td class="excel434"> </td> <td class="excel437" align="right">3.12%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Computers</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">379</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(320)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">59</td> <td class="excel434"> </td> <td class="excel437" align="right">9.58%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">89</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">89</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other equipment</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">514</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(243)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">271</td> <td class="excel434"> </td> <td class="excel437" align="right">4.92%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total equipment</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">7,737</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(3,436)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">4,301</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Other property</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">469</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(249)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437 align=">220</td> <td class="excel434"> </td> <td class="excel437" align="right">1.70%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total properties</td> <td class="excel435">$</td> <td class="excel451" align="right">31,436</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">(8,793)</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">22,643</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr></table> <blockquote> <p align="left">(a) <font class="_mt"><font class="_mt">Composite annual depreciation rate for the underlying assets.</font></font></p></blockquote> <p align="left">Roadway and equipment property includes $<font class="_mt">157</font> million at December 31, 2010, and $<font class="_mt">243</font> million at December 31, 2009, of assets recorded pursuant to capital leases with accumulated amortization of $<font class="_mt">60</font> million and $<font class="_mt">94</font> million at December 31, 2010 and 2009, respectively.&nbsp;&nbsp;Other property include the costs of obtaining rights to natural resources of $<font class="_mt">336</font> million at December 31, 2010 and 2009, with accumulated depletion of $<font class="_mt">187</font> million and $<font class="_mt">184</font> million, respectively.</p> <p align="left"><strong>Capitalized Interest</strong></p> <div align="left"> <p align="left">Total interest cost incurred on debt was $<font class="_mt">477</font> million in 2010, $<font class="_mt">484</font> million in 2009, and $<font class="_mt">459</font> million in 2008, of which $<font class="_mt">15</font> million, $<font class="_mt">17</font> million, and $<font class="_mt">15</font> million, respectively, was capitalized.</p></div> </div> 31436000000 1812000000 89000000 174000000 2828000000 3927000000 514000000 469000000 10324000000 5029000000 3710000000 21049000000 7737000000 2181000000 379000000 32493000000 1909000000 143000000 169000000 2779000000 4020000000 558000000 469000000 10765000000 5253000000 3846000000 21942000000 7876000000 2206000000 376000000 22643000000 1471000000 89000000 174000000 1471000000 2411000000 271000000 220000000 7919000000 3574000000 2803000000 15941000000 4301000000 2181000000 59000000 23231000000 1537000000 143000000 169000000 1396000000 2449000000 299000000 214000000 8146000000 3704000000 2891000000 16447000000 4364000000 2206000000 77000000 <div> <div> <p align="left"><strong>Properties</strong> </p> <p align="left">"Properties" are stated principally at cost and are depreciated using the group method of depreciation whereby assets with similar characteristics, use, and expected lives are grouped together in asset classes and depreciated using a composite depreciation rate.&nbsp;&nbsp;This methodology treats each asset class as a pool of resources, not as singular items.&nbsp;&nbsp;NS uses more than&nbsp;<font class="_mt">60</font> depreciable asset classes.&nbsp;&nbsp;The primary depreciation method for NS' asset base is group life.&nbsp;&nbsp;Units of production is the principal method of depreciation for rail in high density corridors and for depletion of natural resources (see Note 2).&nbsp;&nbsp;Remaining properties are depreciated generally using the straight-line method over the lesser of estimated service or lease lives.&nbsp;&nbsp;Depreciation in the Consolidated Statements of Cash Flows includes both depreciation and depletion. </p> <p align="left">NS' depreciation expense is based on management's assumptions concerning expected service lives of its properties as well as the expected net salvage that will be received upon their retirement.&nbsp;&nbsp;In developing these assumptions, NS' management utilizes periodic depreciation studies that are performed by an independent outside firm of consulting engineers and approved by the Surface Transportation Board ("STB"), the regulatory board that has broad jurisdiction over railroad practices.&nbsp;&nbsp;<font class="_mt">NS' depreciation studies are conducted every three years for equipment and every six years for track assets and other roadway property.</font>&nbsp;&nbsp;The frequency of these studies correlates with guidelines established by the STB.&nbsp; Key factors which are considered in developing average service life and salvage estimates include: </p> <ul> <li>Statistical analysis of historical retirement data and surviving asset records; </li> <li>Review of historical salvage received and current market rates; </li> <li>Review of NS' operations including expected changes in technology, customer demand, maintenance practices and asset management strategies; </li> <li>Review of accounting policies and assumptions; and </li> <li>Industry review and analysis.</li></ul></div> <p>The units of production depreciation rate for rail in high density corridors is derived based on consideration of annual gross ton miles as compared to the total or ultimate capacity of rail in these corridors.&nbsp;&nbsp;NS' experience has shown that traffic density is a leading factor in determination of the expected service life of rail in high density corridors.&nbsp;&nbsp;In developing the respective depreciation rate, consideration is also given to several rail characteristics including age, weight, condition (new or second hand) and type (curve or tangent).&nbsp;&nbsp;As a result, a composite depreciation rate is developed which is applied to the depreciable base.</p> <p>NS' recent experience with these studies has been that while they do result in changes in the rates used to depreciate its properties, these changes have not caused a significant effect to its annual depreciation expense.&nbsp;&nbsp;Changes in rates as a result of depreciation studies are implemented prospectively.&nbsp;&nbsp;The studies may also indicate that the recorded amount of accumulated depreciation is deficient (or in excess) of the amount indicated by the study.&nbsp;&nbsp;Any such deficiency (or excess) is amortized as a component of depreciation expense over the remaining service lives of the affected class of property, as determined by the study.&nbsp;&nbsp;For 2010, roadway depreciation rates ranged from <font class="_mt">0.83</font>% to <font class="_mt">33.3</font>% and equipment depreciation rates ranged from <font class="_mt">1.32</font>% to <font class="_mt">37.84</font>%.</p> <p>NS capitalizes interest on major capital projects during the period of their construction.&nbsp;&nbsp;Expenditures, including those on leased assets, that extend an assets' useful life or increase its utility, are capitalized.&nbsp;&nbsp;Expenditures capitalized include those that are directly related to a capital project and may include materials, labor and equipment, in addition to an allocable portion of indirect costs that clearly relate to a particular project.&nbsp;&nbsp;Due to the capital intensive nature of the railroad industry, a significant portion of annual capital spending relates to the replacement of self constructed assets.&nbsp;&nbsp;Because removal activities occur in conjunction with replacement, removal costs are estimated based on an average percentage of time employees replacing assets spend on removal functions.&nbsp;&nbsp;Costs related to repairs and maintenance activities that do not extend an asset's useful life or increase its utility are expensed when such repairs are performed.</p> <p>When properties other than land and nonrail assets are sold or retired in the ordinary course of business, the cost of the assets, net of sale proceeds or salvage, is charged to accumulated depreciation, and no gain or loss is recognized in earnings.&nbsp;&nbsp;Actual historical cost values are retired when available, such as with equipment assets.&nbsp;&nbsp;The use of estimates in recording the retirement of certain roadway assets is necessary based on the impracticality of tracking individual asset costs.&nbsp;&nbsp;When retiring rail, ties and ballast, NS uses statistical curves that indicate the relative distribution of the age of the assets retired.&nbsp;&nbsp;The historical cost of other roadway assets is estimated using a combination of inflation indices specific to the rail industry and those published by the U.S. Bureau of Labor Statistics.&nbsp;&nbsp;The indices are applied to the replacement value based on the age of the retired assets.&nbsp;&nbsp;These indices are used because they closely correlate with the costs of roadway assets.&nbsp;&nbsp;Gains and losses on disposal of land and nonrail assets are included in "Other income &ndash; net" (see Note 2) since such income is not a product of NS' railroad operations.</p> <p>A retirement is considered abnormal if it does not occur in the normal course of business, if it relates to disposition of a large segment of an asset class and if the retirement varies significantly from the retirement profile identified through our depreciation studies, which inherently consider the impact of normal retirements on expected service lives and depreciation rates.&nbsp;&nbsp;Gains or losses from abnormal retirements are recognized in earnings.<br /><br />NS reviews the carrying amount of properties whenever events or changes in circumstances indicate that such carrying amount may not be recoverable based on future undiscounted cash flows.&nbsp;&nbsp;Assets that are deemed impaired as a result of such review are recorded at the lower of carrying amount or fair value.</p> </div> <div> <table class="excel433" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434" width="190"> </td> <td class="excel439" width="23"> </td> <td class="excel441" width="100">&nbsp;</td> <td class="excel441" width="23"> </td> <td class="excel441" width="23"> </td> <td class="excel441" width="110">Accumulated</td> <td class="excel441" width="23"> </td> <td class="excel434" width="23"> </td> <td class="excel441" width="110">Net Book</td> <td class="excel441" width="23"> </td> <td class="excel441" width="90">Depreciation</td></tr> <tr style="height: 15pt;"><td class="excel434">As of December 31, 2010</td> <td class="excel434"> </td> <td class="excel448">Cost</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Depreciation</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Value</td> <td class="excel434"> </td> <td class="excel441"><u>Rate</u>^(a)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434"> </td> <td class="excel434"> </td> <td class="excel455" colspan="9">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434"> </td> <td class="excel434"> </td> <td class="excel4401"> </td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel4401"> </td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel4401"> </td> <td class="excel434"> </td> <td class="excel4401"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Land</td> <td class="excel435">$</td> <td class="excel437" align="right">2,206&nbsp;</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel435"> </td> <td class="excel435">$</td> <td class="excel437" align="right">2,206&nbsp; </td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Roadway:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Rail and other track material</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">5,253</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,549)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,704</td> <td class="excel434"> </td> <td class="excel437" align="right">3.08%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ties</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,846</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(955)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,891</td> <td class="excel434"> </td> <td class="excel437" align="right">3.31%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ballast</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,909</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(372)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,537</td> <td class="excel434"> </td> <td class="excel437" align="right">2.78%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">169</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">169</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other roadway</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">10,765</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(2,619)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">8,146</td> <td class="excel434"> </td> <td class="excel437" align="right">2.39%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total roadway</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">21,942</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(5,495)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">16,447</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Equipment:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Locomotives</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">4,020</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,571)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,449</td> <td class="excel434"> </td> <td class="excel437" align="right">3.03%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Freight cars</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,779</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,383)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,396</td> <td class="excel434"> </td> <td class="excel437" align="right">2.34%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Computers</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">376</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(299)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">77</td> <td class="excel434"> </td> <td class="excel437" align="right">8.28%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">143</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">143</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other equipment</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">558</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(259)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">299</td> <td class="excel434"> </td> <td class="excel437" align="right">4.57%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total equipment</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">7,876</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(3,512)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">4,364</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Other property</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">469</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(255)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">214</td> <td class="excel434"> </td> <td class="excel437" align="right">1.48%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total properties</td> <td class="excel435">$</td> <td class="excel451" align="right">32,493</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">(9,262)</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">23,231</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr></table> <p align="left">&nbsp;</p> <p align="left"> </p> <table class="excel433" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434" width="190"> </td> <td class="excel439" width="23"> </td> <td class="excel441" width="100">&nbsp;</td> <td class="excel441" width="23"> </td> <td class="excel441" width="23"> </td> <td class="excel441" width="110">Accumulated</td> <td class="excel441" width="23"> </td> <td class="excel434" width="23"> </td> <td class="excel441" width="110">Net Book</td> <td class="excel441" width="23"> </td> <td class="excel441" width="90">Depreciation</td></tr> <tr style="height: 15pt;"><td class="excel434">As of December 31, 2009</td> <td class="excel434"> </td> <td class="excel448">Cost</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Depreciation</td> <td class="excel434"> </td> <td class="excel434"> </td> <td class="excel448">Value</td> <td class="excel434"> </td> <td class="excel441"><u>Rate</u>^(a)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel434"> </td> <td class="excel434"> </td> <td class="excel455" colspan="9">($ in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Land</td> <td class="excel435">$</td> <td class="excel437" align="right">2,181&nbsp;</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel435"> </td> <td class="excel435">$</td> <td class="excel437" align="right">2,181&nbsp; </td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Roadway:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Rail and other track material</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">5,029</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,455)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,574</td> <td class="excel434"> </td> <td class="excel437" align="right">3.11%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ties</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,710</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(907)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,803</td> <td class="excel434"> </td> <td class="excel437" align="right">3.30%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Ballast</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,812</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(341)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,471</td> <td class="excel434"> </td> <td class="excel437" align="right">2.77%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">174</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">174</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other roadway</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">10,324</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(2,405)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">7,919</td> <td class="excel434"> </td> <td class="excel437" align="right">2.30%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total roadway</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">21,049</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(5,108)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">15,941</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Equipment:</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Locomotives</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">3,927</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,516)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,411</td> <td class="excel434"> </td> <td class="excel437" align="right">3.46%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Freight cars</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">2,828</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(1,357)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">1,471</td> <td class="excel434"> </td> <td class="excel437" align="right">3.12%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Computers</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">379</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(320)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">59</td> <td class="excel434"> </td> <td class="excel437" align="right">9.58%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Construction in process</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">89</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">-&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">89</td> <td class="excel434"> </td> <td class="excel437" align="right">-&nbsp;&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;&nbsp;Other equipment</td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">514</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">(243)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel450" align="right">271</td> <td class="excel434"> </td> <td class="excel437" align="right">4.92%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total equipment</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">7,737</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(3,436)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">4,301</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">&nbsp;</td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437">&nbsp;</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Other property</td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">469</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437" align="right">(249)</td> <td class="excel434"> </td> <td class="excel435">&nbsp;</td> <td class="excel437 align=">220</td> <td class="excel434"> </td> <td class="excel437" align="right">1.70%</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel445">Total properties</td> <td class="excel435">$</td> <td class="excel451" align="right">31,436</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">(8,793)</td> <td class="excel434"> </td> <td class="excel435">$</td> <td class="excel451" align="right">22,643</td> <td class="excel434"> </td> <td class="excel437">&nbsp;</td></tr></table> <blockquote> <p align="left">(a) <font class="_mt">Composite annual depreciation rate for the underlying assets.</font></p></blockquote> </div> <div> <div align="left"> <table border="0" width="745"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td colspan="9"> <p align="center"><strong>NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES<br />QUARTERLY FINANCIAL DATA<br />(Unaudited)</strong></p></td></tr> <tr><td width="243">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td> <td width="12">&nbsp;</td> <td width="99">&nbsp;</td></tr> <tr><td>&nbsp;</td> <td colspan="8"> <div align="center"><strong>Three Months Ended</strong></div></td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td> <div align="center"><strong><u>March 31</u></strong></div></td> <td>&nbsp;</td> <td> <div align="center"><strong><u>June 30</u></strong></div></td> <td>&nbsp;</td> <td> <div align="center"><strong><u>September 30</u></strong></div></td> <td>&nbsp;</td> <td> <div align="center"><strong><u>December 31</u></strong></div></td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="7"> <div align="center"><em>($ in millions, except per share amounts )</em></div></td></tr> <tr><td><strong><u>2010</u></strong></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>Railway operating revenues</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,238</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,430</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,456</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,392</div></td></tr> <tr><td>Income from railway operations</td> <td>&nbsp;</td> <td> <div align="right">555</div></td> <td>&nbsp;</td> <td> <div align="right">733</div></td> <td>&nbsp;</td> <td> <div align="right">746</div></td> <td>&nbsp;</td> <td> <div align="right">642</div></td></tr> <tr><td>Net income</td> <td>&nbsp;</td> <td> <div align="right">257</div></td> <td>&nbsp;</td> <td> <div align="right">392</div></td> <td>&nbsp;</td> <td> <div align="right">445</div></td> <td>&nbsp;</td> <td> <div align="right">402</div></td></tr> <tr><td> <p>Earnings per share:</p></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.69</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.06</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11</div></td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.68</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.04</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.09</div></td></tr> <tr><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td><strong><u>2009</u></strong></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>Railway operating revenues</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,943</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,857</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,063</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,106</div></td></tr> <tr><td>Income from railway operations</td> <td>&nbsp;</td> <td> <div align="right">383</div></td> <td>&nbsp;</td> <td> <div align="right">468</div></td> <td>&nbsp;</td> <td> <div align="right">562</div></td> <td>&nbsp;</td> <td> <div align="right">549</div></td></tr> <tr><td>Net income</td> <td>&nbsp;</td> <td> <div align="right">177</div></td> <td>&nbsp;</td> <td> <div align="right">247</div></td> <td>&nbsp;</td> <td> <div align="right">303</div></td> <td>&nbsp;</td> <td> <div align="right">307</div></td></tr> <tr><td>Earnings per share:</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.67</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.82</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.83</div></td></tr> <tr><td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.47</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.66</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.81</div></td> <td>&nbsp;</td> <td> <div align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.82</div></td></tr></table></div> </div> 47000000 47000000 47000000 1145000000 687000000 489000000 9027000000 9224000000 <div> <p align="left"><strong>Revenue Recognition</strong></p> <p align="left">Transportation revenue is recognized proportionally as a shipment moves from origin to destination and related expenses are recognized as incurred.&nbsp;&nbsp;Refunds (which are primarily volume-based incentives) are recorded as a reduction to revenues on the basis of management's best estimate of projected liability, which is based on historical activity, current traffic counts and the expectation of future activity.&nbsp;&nbsp;NS regularly monitors its contract refund liability and, historically, the estimates have not differed significantly from the amounts ultimately refunded.&nbsp;&nbsp; Switching, demurrage and other incidental service revenues are recognized when the services are performed.</p> </div> 10661000000 1943000000 7969000000 1857000000 2063000000 2106000000 2238000000 9516000000 2430000000 2456000000 2392000000 53000000 59000000 73000000 64000000 67000000 80000000 <div> <table class="excel746" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 221pt; height: 15pt;" class="excel749" width="295"> </td> <td style="width: 20pt;" class="excel747" width="27"> </td> <td style="width: 13pt;" class="excel747" width="17"> </td> <td style="width: 62pt;" class="excel750" width="83"> <div align="center"><u><strong>2010</strong></u></div></td> <td style="width: 20pt;" class="excel747" width="26"> </td> <td style="width: 13pt;" class="excel747" width="17"> </td> <td style="width: 62pt;" class="excel750" width="83"> <div align="center"><u><strong>2009</strong></u></div></td> <td style="width: 20pt;" class="excel747" width="26"> </td> <td style="width: 13pt;" class="excel747" width="17"> </td> <td style="width: 62pt;" class="excel750" width="83"> <div align="center"><u><strong>2008</strong></u></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel749"> </td> <td class="excel747"> </td> <td class="excel747"> </td> <td class="excel753" colspan="7"> <div align="center"><em>($ in millions except per share, shares in millions)</em></div></td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel749"> </td> <td class="excel747"> </td> <td class="excel747"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td> <td class="excel753"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel747">Basic earnings per share:</td> <td class="excel747"> </td> <td class="excel748"> </td> <td class="excel751"> </td> <td class="excel747"> </td> <td class="excel748"> </td> <td class="excel751"> </td> <td class="excel747"> </td> <td class="excel748"> </td> <td class="excel751"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel747">&nbsp;&nbsp; Income available to common stockholders</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel10" align="right">1,488</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel10" align="right">1,026</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel10" align="right">1,707</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel747">&nbsp;&nbsp; Weighted-average shares outstanding</td> <td class="excel747"> </td> <td class="excel628"> </td> <td class="excel607" align="right">366.5</td> <td class="excel747"> </td> <td class="excel628"> </td> <td class="excel607" align="right">367.1</td> <td class="excel747"> </td> <td class="excel628"> </td> <td class="excel607" align="right">372.3</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel747">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic earnings per share</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel607" align="right">4.06</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel607" align="right">2.79</td> <td class="excel747"> </td> <td class="excel628">$</td> <td class="excel607" align="right">4.58</td></tr></table> </div> <div> <table class="excel874" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 388pt; height: 15pt;" class="excel877" width="517"> </td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 62pt;" class="excel615" width="83">2010</td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 62pt;" class="excel615" width="83">2009</td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 13pt;" class="excel875" width="17"> </td> <td style="width: 62pt;" class="excel615" width="83">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel877"> </td> <td class="excel875"> </td> <td class="excel619" colspan="7">($ in millions except per share, shares in millions)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel877"> </td> <td class="excel875"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td> <td class="excel881"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">Diluted earnings per share:</td> <td class="excel876"> </td> <td class="excel879"> </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel879"> </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel879"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Income available to common stockholders</td> <td class="excel628">$</td> <td class="excel607" align="right">1,488 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">1,026 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">1,716 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Weighted-average shares outstanding per above</td> <td class="excel876"> </td> <td class="excel10" align="right">366.5 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel10" align="right">367.1 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel10" align="right">372.3 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Diluted effect of outstanding options, PSUs and restricted stock units/shares</td> <td class="excel876"> </td> <td class="excel607" align="right">5.3 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">5.0 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">7.7 </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel875">&nbsp;&nbsp; Adjusted weighted-average shares outstanding</td> <td class="excel876"> </td> <td class="excel607" align="right">371.8 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">372.1 </td> <td class="excel875"> </td> <td class="excel876"> </td> <td class="excel607" align="right">380.0 </td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel875">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted earnings per share</td> <td class="excel628">$</td> <td class="excel607" align="right">4.00 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">2.76 </td> <td class="excel875"> </td> <td class="excel628">$</td> <td class="excel607" align="right">4.52 </td></tr></table> </div> <div> <div> <p align="left"><strong>2.&nbsp;&nbsp;</strong><strong>Other Income Net</strong></p> <table class="excel311" cellspacing="0" cellpadding="0"> <tr style="height: 15pt;"><td style="width: 267pt; height: 15pt;" class="excel314" width="356"> </td> <td style="width: 20pt;" class="excel312" width="27"> </td> <td style="width: 13pt;" class="excel312" width="17"> </td> <td style="width: 64pt;" class="excel315" width="85">2010</td> <td style="width: 35pt;" class="excel312" width="47"> </td> <td style="width: 13pt;" class="excel312" width="17"> </td> <td style="width: 64pt;" class="excel315" width="85">2009</td> <td style="width: 35pt;" class="excel312" width="47"> </td> <td style="width: 13pt;" class="excel312" width="17"> </td> <td style="width: 64pt;" class="excel315" width="85">2008</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel314"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel315"> </td> <td class="excel321" colspan="5">($ in millions)</td> <td class="excel315"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel314"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel315"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel321"> </td> <td class="excel315"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Income from natural resources:</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel312"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">&nbsp;&nbsp; Royalties from coal</td> <td class="excel312"> </td> <td class="excel313">$</td> <td class="excel316" align="right">80&nbsp;</td> <td class="excel312"> </td> <td class="excel313">$</td> <td class="excel316" align="right">67&nbsp; </td> <td class="excel312"> </td> <td class="excel313">$</td> <td class="excel316" align="right">64&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">&nbsp;&nbsp; Nonoperating depletion and depreciation</td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel317" align="right">(7)</td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel317" align="right">(8)</td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel317" align="right">(11)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">73&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">59&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">53&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312"> </td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel316"> </td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel316"> </td> <td class="excel312"> </td> <td class="excel313"> </td> <td class="excel316"> </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Rental income</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">47&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">47&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">47&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="MetaData">Gains and losses from sale of properties</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">41&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">18&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">29&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Equity in earnings of Conrail Inc. (Note 5)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">26&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">32&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">29&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Interest income</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">12&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">13&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">20&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Corporate-owned life insurance net</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">1&nbsp;</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">1&nbsp; </td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(31)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Taxes on nonoperating property</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">(10)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(10)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(10)</td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="excel312">Other interest expense net</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel316" align="right">(16)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">(5)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel319" align="right">2&nbsp; </td></tr> <tr style="height: 15pt;"><td style="height: 15pt;" class="MetaData">Other</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel320" align="right">(21)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel320" align="right">(28)</td> <td class="excel312"> </td> <td class="excel312"> </td> <td class="excel320" align="right">(29)</td></tr> <tr style="height: 15.75pt;"><td style="height: 15.75pt;" class="excel312">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</td> <td class="excel312"> </td> <td class="excel313">$</td> <td style="border-top-style: none;" class="excel338" align="right">153&nbsp; </td> <td class="excel312"> </td> <td class="excel313">$</td> <td style="border-top-style: none;" class="excel338" align="right">127&nbsp; </td> <td class="excel312"> </td> <td class="excel313">$</td> <td style="border-top-style: none;" class="excel338" align="right">110&nbsp; </td></tr></table> <p align="left">Other income net includes income and costs not part of rail operations and the income generated by the activities of NS noncarrier subsidiaries as well as the costs incurred by those subsidiaries in their operations.</p></div> </div> <div> <p style="text-align: right; line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Schedule II </font></p> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><u><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Norfolk Southern Corporation and Subsidiaries</font></u></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> <br /><b>Valuation and Qualifying Accounts<br />Years Ended December 31, 2008, 2009, and 2010<br />($ in millions)</b> </font></p> <div class="MetaData"> <table style="line-height: 115%; width: 695.25pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormalTable" border="0" cellpadding="0" width="927"> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 225pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="300"> </td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" colspan="14"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><u><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Additions charged to:</font></u></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 9pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="12"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; width: 67.5pt; padding-right: 0.75pt; padding-top: 0.75pt;" width="90"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Beginning<br /><u>Balance</u></font></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><u><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Expenses</font></u></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Other<br /><u>Accounts</u></font></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><u><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Deductions</font></u></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="text-align: center; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="center"><b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Ending<br /><u>Balance</u></font></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"> </font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><i><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Year ended December 31, 2008</font></i></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"><br />Valuation allowance (included net in<br />&nbsp;&nbsp;&nbsp;deferred tax liability) for deferred<br />&nbsp;&nbsp;&nbsp;tax assets</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">10</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">1</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">11</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Casualty and other claims<br />&nbsp;&nbsp;&nbsp;included in other liabilities</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">588</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">84</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">80^2,3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">432²</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">320</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Current portion of casualty and<br />&nbsp;&nbsp;&nbsp;other claims included in<br />&nbsp;&nbsp;&nbsp;accounts payable</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">259</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">28</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">127¹</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">166³</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">248</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><i><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Year ended December 31, 2009</font></i></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"><br />Valuation allowance (included net in<br />&nbsp;&nbsp;&nbsp;deferred tax liability) for deferred<br />&nbsp;&nbsp;&nbsp;tax assets</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">11</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">14</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Casualty and other claims<br />&nbsp;&nbsp;&nbsp;included in other liabilities</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">320</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">58</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">4^2,3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">117²</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">265</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Current portion of casualty and<br />&nbsp;&nbsp;&nbsp;other claims included in<br />&nbsp;&nbsp;&nbsp;accounts payable</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">248</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">3</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">115¹</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">133³</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">233</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><b><i><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Year ended December 31, 2010</font></i></b><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt"><br />Valuation allowance (included net in<br />&nbsp;&nbsp;&nbsp;deferred tax liability) for deferred<br />&nbsp;&nbsp;&nbsp;tax assets</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">14</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">7</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">21</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Casualty and other claims<br />&nbsp;&nbsp;&nbsp;included in other liabilities</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">265</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">87</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">--</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">91²</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">261</font></p></td></tr> <tr><td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Current portion of casualty and<br />&nbsp;&nbsp;&nbsp;other claims included in<br />&nbsp;&nbsp;&nbsp;accounts payable</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">233</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">13</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">150¹</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">142³</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;"> <p style="line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">$</font></p></td> <td style="padding-bottom: 0.75pt; padding-left: 0.75pt; padding-right: 0.75pt; padding-top: 0.75pt;" valign="bottom"> <p style="text-align: right; line-height: normal; margin: 0in 0in 0pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal" align="right"><font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">254</font></p></td></tr></table> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">^{<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">1</font>}<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Includes revenue refunds and overcharges provided through deductions from operating revenues and transfers from other accounts.</font></p> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">^{<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">2</font>}<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Payments and reclassifications to/from accounts payable.</font></p> <p style="line-height: normal; margin: 0in 0in 10pt; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormal">^{<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">3</font>}<font style="font-family: 'Times New Roman','serif'; font-size: 12pt;" class="_mt">Payments and reclassifications to/from other liabilities.</font></p></div> </div> <font class="_mt">10</font> <font class="_mt">fourth</font> <font class="_mt">third</font> 45.36 46.49 1162600 299950 1209700 320550 824900 168250 50.465 38.705 47.76 47.76 3531000 433236 1218960 3184700 1098000 46.14 40.94 45.31 40.94 433236 34.10 5.9 8.0 6.5 9.2 8.3 8.3 0.0368 0.0287 0.0363 8208413 3.8 208000000 48000000 91000000 22.51 14000 45.80 1162600 250000 1412600 1209700 251200 1460900 824900 259800 1084700 47.76 13198140 11735113 32.95 36.55 5.1 32.74 100000000 100000000 0.0222 0.0154 90000000 283000000 9727000000 -399000000 1466000000 380000000 8280000000 9607000000 -942000000 1680000000 368000000 8501000000 10353000000 -853000000 1809000000 370000000 9027000000 10669000000 -805000000 1892000000 358000000 9224000000 7000000 6000000 1000000 6000000 6000000 5000000 6000000 -1000000 -2500 5697049 2190947 2533727 284000000 287000000 6000000 -9000000 117000000 123000000 2000000 -8000000 144000000 149000000 3000000 -8000000 19400000 0 14700000 1128000000 79000000 19000000 1030000000 0 863000000 72000000 15000000 776000000 237000000 192000000 260000000 222000000 73000000 18000000 32000000 109000000 199000000 20443337 20336843 19000000 19000000 169000000 94000000 152000000 -85000000 -19000000 -22000000 -2000000 0 0 0 25000000 51000000 24000000 44000000 12000000 14000000 15000000 6000000 -1000000 -17000000 -16000000 92000000 1000000 3000000 7000000 259000000 588000000 10000000 248000000 320000000 11000000 233000000 265000000 14000000 254000000 261000000 21000000 28000000 84000000 1000000 3000000 58000000 3000000 13000000 87000000 7000000 127000000 80000000 115000000 4000000 150000000 166000000 432000000 133000000 117000000 142000000 91000000 7700000 5000000 5300000 380000000 372100000 371800000 372300000 367100000 366500000 Composite annual depreciation rate for the underlying assets. Includes revenue refunds and overcharges provided through deductions from operating revenues and transfers from other accounts. Payments and reclassifications to/from accounts payable. Payments and reclassifications to/from other liabilities.