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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">11.<font class="_mt"> Commitments and Contingencies</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;"> </font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Lawsuits</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Norfolk Southern and/or certain subsidiaries are defendants in numerous lawsuits and other claims relating principally to railroad operations.<font class="_mt"> 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.<font class="_mt"> 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.<font class="_mt"> 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.<font class="_mt"> Any adjustments to the recorded liability will be reflected in earnings in the periods in which such adjustments are known.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Casualty Claims</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Casualty claims include employee personal injury and occupational claims as well as third-party claims, all exclusive of legal costs.<font class="_mt"> To aid in valuing its personal injury liability and determining the amount to accrue with respect to such claims during the year, NS’ management utilizes studies prepared by an independent consulting actuarial firm.<font class="_mt"> Job-related accidental injury and occupational claims are subject to the Federal Employers’ Liability Act (FELA), which is applicable only to railroads.<font class="_mt"> FELA’s fault-based system produces results that are unpredictable and inconsistent as compared with a no-fault workers’ compensation system.<font class="_mt"> The variability inherent in this system could result in actual costs being different from the liability recorded.<font class="_mt"> 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.<font class="_mt"> In all cases, NS records a liability when the expected loss for the claim is both probable and estimable.</font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">In April 2008, NS settled the lawsuit brought by Avondale Mills for claims associated with the January 6, 2005, derailment in Graniteville, SC.<font class="_mt"> A portion of the settlement was not reimbursed by insurance and was included in first quarter 2008 expenses.<font class="_mt"> The total liability related to the derailment represents NS’ best estimate based on current facts and circumstances.<font class="_mt"> The estimate includes amounts related to business property damage and other economic losses, personal injury and individual property damage claims, as well as third-party response costs.<font class="_mt"> 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.<font class="_mt"> The Consolidated Balance Sheets reflect long-term receivables for estimated recoveries from NS’ insurance carriers.<font class="_mt"> NS is engaged in arbitration with one of its insurance carriers that failed to respond to an insurance claim submitted by NS.<font class="_mt"> NS believes these expenses are covered by the insurance policy and that recovery of the contested amount is probable, in that NS expects the arbitrator will determine the settlement amounts to be reasonable and that the insurer’s refusal to consent to and to fund the settlement was a breach of contract.<font class="_mt"> Accordingly, NS has recorded the full recovery attributable to such carrier ($100 million).<font class="_mt"> In October 2008, another of NS’ insurance carriers provided the preliminary findings of its review of NS’ reimbursement request and reported that it may dispute a portion of that request.<font class="_mt"> NS has initiated arbitration against the carrier and has submitted its arbitration claim ($43 million).<font class="_mt"> NS believes that recovery of the claimed amount is probable.</font></font></font></font></font></font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Employee personal injury claims</font></b> <font class="_mt" style="font-size: 11pt;">– The largest component of casualties and other claims expense is employee personal injury costs.<font class="_mt"> 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.<font class="_mt"> The actuarial firm studies NS’ historical patterns of reserving for claims and subsequent settlements, taking into account relevant outside influences.<font class="_mt"> The actuary uses the results of these analyses to estimate the ultimate amount of the liability, which includes amounts for incurred but unasserted claims.<font class="_mt"> NS adjusts its liability quarterly based upon management’s assessment and the results of the study.<font class="_mt"> 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.</font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Occupational claims</font></b> <font class="_mt" style="font-size: 11pt;">– 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.<font class="_mt"> Many such claims are being asserted by former or retired employees, some of whom have not been employed in the rail industry for decades.<font class="_mt"> 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.<font class="_mt"> 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.<font class="_mt"> The actuarial firm’s estimate of ultimate loss includes a provision for those claims that have been incurred but not reported.<font class="_mt"> This provision is derived by analyzing industry data and projecting NS’ experience into the future as far as can be reasonably determined.<font class="_mt"> NS adjusts its liability quarterly based upon management’s assessment and the results of the study.<font class="_mt"> However, it is possible that the recorded liability may not be adequate to cover the future payment of claims.<font class="_mt"> Adjustments to the recorded liability are reflected in operating expenses in the periods in which such adjustments become known.</font></font></font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Third-party claims</font></b> <font class="_mt" style="font-size: 11pt;">– 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.<font class="_mt"> 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.<font class="_mt"> The actuarial estimate includes a provision for claims that have been incurred but have not yet been reported.<font class="_mt"> Each quarter NS adjusts its liability based upon management’s assessment and the results of the study.<font class="_mt"> 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.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Environmental Matters</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">NS is subject to various jurisdictions’ environmental laws and regulations.<font class="_mt"> It is NS’ policy to record a liability where such liability or loss is probable and its amount can be estimated reasonably.<font class="_mt"> 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.<font class="_mt"> Environmental engineers regularly participate in ongoing evaluations of all known sites and in determining any necessary adjustments to liability estimates.<font class="_mt"> NS also has an Environmental Policy Council, composed of senior managers, to oversee and interpret its environmental policy.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">NS’ Consolidated Balance Sheets include liabilities for environmental exposures in the amount of $33 million at September 30, 2009, and $42 million at December 31, 2008 (of which $12 million is classified as a current liability at the end of each period).<font class="_mt"> At September 30, 2009, the liability represents NS’ estimate of the probable cleanup and remediation costs based on available information at 146 known locations.<font class="_mt"> As of that date, 9 sites accounted for $15 million of the liability, and no individual site was considered to be material.<font class="_mt"> NS anticipates that much of this liability will be paid out over five years; however, some costs will be paid out over a longer period.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">At 29 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.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">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.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">The risk of incurring environmental liability – for acts and omissions, past, present and future – is inherent in the railroad business.<font class="_mt"> 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.<font class="_mt"> 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.<font class="_mt"> 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.<font class="_mt"> Moreover, lawsuits and claims involving these and potentially other unidentified environmental sites and matters are likely to arise from time to time.<font class="_mt"> The resulting liabilities could have a significant effect on NS’ financial position, results of operations, or liquidity in a particular year or quarter.</font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">On April 24, 2008, the United States Department of Justice (DOJ) brought an action against NS for alleged violations of federal environmental laws resulting from the discharge of chlorine and oil that occurred as a result of the January 6, 2005, derailment in Graniteville, SC, including claims for civil penalties as well as injunctive relief.<font class="_mt"> Although NS’ motion to dismiss for failure to allege sufficient facts was granted, DOJ was given leave to, and did, amend its complaint.<font class="_mt"> NS does not believe that the resolution of these claims will have a material adverse effect on its financial position, results of operations, or liquidity.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Based on its assessment of the facts and circumstances now known, management believes that it has recorded the probable costs for dealing with those environmental matters of which NS is aware.<font class="_mt"> 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.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Insurance</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Norfolk Southern obtains on behalf of itself and its subsidiaries insurance for potential losses for third-party liability and first-party property damages.<font class="_mt"> NS is currently self-insured up to $25 million and above $1 billion per occurrence for bodily injury and property damage to third parties and up to $25 million and above $175 million per occurrence for property owned by NS or in NS’ care, custody or control.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Purchase Commitments</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">At September 30, 2009, NS had outstanding purchase commitments of approximately $75 million primarily for track material, freight cars, and RoadRailer® units in connection with its capital programs through 2011.</font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">9.<font class="_mt"> Comprehensive Income</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">NS’ total comprehensive income was as follows:</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Three Months Ended</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Nine Months Ended</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">September 30,</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">September 30,</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><i><font class="_mt" style="font-size: 11pt;">($ in millions)</font></i></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Net income</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">303</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">520</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">727</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1,264</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Other comprehensive income</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">10</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">3</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">30</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">10</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Total comprehensive income</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">313</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">523</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">757</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1,274</font></p> </td> </tr> </table> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">“Other comprehensive income” in 2009 and 2008 reflects primarily, net of tax, the amortization of the actuarial net losses and prior service costs (benefits) for the pension and other postretirement benefit plans and unrealized gains and losses on available-for-sale securities.</font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
598000000
201000000
624000000
210000000
181000000
173000000
149000000
152000000
6372000000
6566000000
606000000
630000000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">1.<font class="_mt"> Stock-based Compensation</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">In the first quarter of 2009, a committee of non-employee directors of Norfolk Southern’s Board of Directors granted stock options, restricted stock units and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP) and granted stock options pursuant to the Thoroughbred Stock Option Plan (TSOP) as discussed below.<font class="_mt"> Stock-based compensation expense was $19 million during the third quarter of 2009 and $23 million during the same period of 2008.<font class="_mt"> For the first nine months of 2009 and 2008, stock-based compensation expense was $34 million and $118 million, respectively.<font class="_mt"> The total tax effect recognized in income in relation to stock-based compensation were benefits of $7 million and $8 million for the quarters ended September 30, 2009 and 2008, respectively, and benefits of $9 million and $40 million for the first nine months of 2009 and 2008, respectively.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Stock Options</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">In the first quarter of 2009, 1,209,700 options were granted under the LTIP and 251,200 options were granted under the TSOP.<font class="_mt"> In each case, the grant price was $38.71, which was the average fair market value of Norfolk Southern common stock (Common Stock) on the effective date of the grant, and the options have a term of ten years.<font class="_mt"> 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.<font class="_mt"> Holders of the options granted under the LTIP 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.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">The fair value of each option award in 2009 was measured on the date of grant using a lattice-based option valuation model.<font class="_mt"> Expected volatilities are based on implied volatilities from traded options on Common Stock and historical volatility of Common Stock.<font class="_mt"> NS uses historical data to estimate option exercises and employee terminations within the valuation model.<font class="_mt"> 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.<font class="_mt"> The average risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.<font class="_mt"> For options granted that include dividend equivalent payments, a dividend yield of zero was used.<font class="_mt"> The assumptions for the 2009 LTIP grant are shown in the following table:</font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Expected volatility rate</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">28% - 53%</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Average expected volatility</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">43%</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Average expected option life</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">6.5 years</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Average risk-free interest rate</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">2.87%</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Per-share grant-date fair value</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$18.18</font></p> </td> </tr> </table> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">The grant-date fair value of the 2009 TSOP grant was $15.41 using the same assumptions as the 2009 LTIP grant, except the average expected option life was 9.2 years and a dividend yield of 2.40% was used because no dividend equivalent payments are made on these options.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">During the third quarter of 2009, options relating to 241,754 shares were exercised, yielding $6 million in cash proceeds and $3 million of tax benefits recognized as additional paid-in capital.<font class="_mt"> During the third quarter of 2008, options relating to 1,165,958 shares were exercised, yielding $27 million in cash proceeds and $20 million of tax benefits recognized as additional paid-in capital.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">For the first nine months of 2009, options relating to 1,082,657 shares were exercised, yielding $30 million of cash proceeds and $6 million of tax benefits recognized as additional paid-in capital.<font class="_mt"> For the first nine months of 2008, option exercises resulted in $132 million of cash proceeds and $73 million of tax benefits.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Restricted Stock Units and Restricted Shares</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">There were 319,550 restricted stock units granted in 2009, with an average grant-date fair value of $38.71 and a five-year restriction period.<font class="_mt"> The restricted stock units granted in 2009 will be settled through the issuance of shares of Common Stock.<font class="_mt"> There were no restricted shares granted in 2009.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">During the third quarter of 2009, 3,023 restricted stock units were earned and paid out in cash with a weighted-average fair value of $41.32.<font class="_mt"> Also earned and distributed were 4,535 restricted shares with a weighted-average grant-date fair value of $34.10.<font class="_mt"> The total related tax benefit recognized as additional paid-in capital was less than $1 million during the third quarter of 2009.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">During the first nine months of 2009, 351,755 restricted stock units were earned and paid out in cash with a weighted average fair value of $36.32.<font class="_mt"> Also earned and distributed were 368,158 restricted shares with a weighted-average grant-date fair value of $47.54.<font class="_mt"> The total related tax expense recognized as a reduction to additional paid in capital was $1 million for the first nine months of 2009.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Performance Share Units</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">PSUs provide for awards based on achievement of certain predetermined corporate performance goals at the end of a three-year cycle.<font class="_mt"> During the first quarter of 2009, there were 1,209,700 PSUs granted with a grant-date fair value of $38.71.<font class="_mt"> The PSUs granted in 2009 will be paid in the form of shares; 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.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">During the first nine months of 2009, 983,965 PSUs were earned and paid out, one-half in shares of Common Stock, and one-half in cash.<font class="_mt"> These PSUs had a grant-date fair value of $49.43 per unit and a fair value at pay out of $38.71 per unit.<font class="_mt"> The total related tax expense recognized as a reduction to additional paid-in capital was $2 million for the first nine months of 2009.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">For the first nine months of 2008, 1,013,999 PSUs were earned and paid out, one-half in shares of Common Stock and one-half in cash.<font class="_mt"> These PSUs had a grant-date fair value of $34.10 per unit and a fair value at pay out of $50.47 per unit.<font class="_mt"> The total related tax benefit was $2 million for the first nine months of 2008.</font></font></font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
3.36
1.39
1.97
0.82
3.30
1.37
1.94
0.81
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">3.<font class="_mt"> Earnings Per Share</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">The following tables set forth the calculations of basic and diluted earnings per share:</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Three Months Ended</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Nine Months Ended</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">September 30,</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">September 30,</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><i><font class="_mt" style="font-size: 11pt;">($ in millions except per share, shares in millions)</font></i></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 60.3pt; padding-top: 0in;" valign="top" width="80"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Basic earnings per share:</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 60.3pt; padding-top: 0in;" valign="top" width="80"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Income available to common stockholders</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">301</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">517</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">721</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 60.3pt; padding-top: 0in;" valign="top" width="80"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1,257</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Weighted-average shares outstanding</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">367.3</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">372.5</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">366.8</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.3pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="80"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">374.4</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Basic earnings per share</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">0.82</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1.39</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1.97</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.3pt; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="80"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">3.36</font></p> </td> </tr> </table> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">In the first quarter of 2009, NS adopted the provisions of the Financial Accounting Standards Board Staff Position (FSP) EITF No. 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities” (Accounting Standards Codification (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.<font class="_mt"> NS has retrospectively applied the provisions of this FSP and accordingly, income available to common stockholders for the third quarter 2009 and 2008 reflects a $2 million and $3 million reduction, respectively, and for the first nine months of 2009 and 2008 a $6 million and $7 million reduction, respectively, from net income for the effect of dividend equivalent payments made to holders of stock options, which had the effect of reducing the previously reported basic earnings per share for the nine months ended September 30, 2008, from $3.37 to $3.36.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Three Months Ended</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Nine Months Ended</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">September 30,</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">September 30,</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><i><font class="_mt" style="font-size: 11pt;">($ in millions except per share, shares in millions)</font></i></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Diluted earnings per share:</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Income available to stockholders</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">301</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">520</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">721</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1,264</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Weighted-average shares outstanding per above</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: medium none;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">367.3</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: medium none;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">372.5</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: medium none;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">366.8</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: medium none;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">374.4</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Dilutive effect of outstanding options, PSUs</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> and restricted shares</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">5.2</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">8.0</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">4.9</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">8.2</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Adjusted weighted-average shares outstanding</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">372.5</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">380.5</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">371.7</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">382.6</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.2in; padding-top: 0in;" valign="top" width="307"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Diluted earnings per share</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 27pt; padding-top: 0in;" valign="top" width="36"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">0.81</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1.37</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1.94</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="72"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">3.30</font></p> </td> </tr> </table> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">As required under the provisions of FSP EITF No. 03-6-1 (ASC 260-10), diluted earnings per share for the three and nine months ended September 30, 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 2009 reflects a $2 million and $6 million reduction, respectively, from net income for dividend equivalent payments.<font class="_mt"> The diluted calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows:<font class="_mt"> in 2009, 4.1 million in the third quarter, 5.6 million in both the second and first quarters, and none in 2008.</font></font></font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">10.<font class="_mt"> Fair Value of Financial Instruments</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">The fair values of “Cash and cash equivalents,” “Accounts receivable” and “Accounts payable” approximate carrying values because of the short maturity of these financial instruments.<font class="_mt"> The carrying value of corporate-owned life insurance is recorded at cash surrender value and, accordingly, approximates fair value.<font class="_mt"> The carrying amounts</font></font></font> <font class="_mt" style="font-size: 11pt;">and estimated fair values for the remaining financial instruments, excluding derivatives and investments accounted for under the equity method, consisted of the following at September 30, 2009, and December 31, 2008:</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.7in; padding-top: 0in;" valign="top" width="163"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">September 30, 2009</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">December 31, 2008</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.7in; padding-top: 0in;" valign="top" width="163"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Carrying</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Fair</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Carrying</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Fair</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.7in; padding-top: 0in;" valign="top" width="163"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Amount</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Value</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Amount</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Value</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.7in; padding-top: 0in;" valign="top" width="163"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><i><font class="_mt" style="font-size: 11pt;">($ in millions)</font></i></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.7in; padding-top: 0in;" valign="top" width="163"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.7in; padding-top: 0in;" valign="top" width="163"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Investments</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">239 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">267 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">187 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">202 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1.7in; padding-top: 0in;" valign="top" width="163"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Long-term debt</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(7,065)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(8,065)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(6,667)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(6,885)</font></p> </td> </tr> </table> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -0.25in 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Underlying net assets were used to estimate the fair value of investments with the exception of notes receivable which are based on discounted future cash flows.<font class="_mt"> 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.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Carrying amounts of marketable securities reflect unrealized holding gains of zero on September 30, 2009 and December 31, 2008.<font class="_mt"> Sales of “available-for-sale” securities were immaterial for the three and nine months ended September 30, 2009 and 2008.</font></font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
1369000000
474000000
504000000
192000000
-24000000
-13000000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">2.<font class="_mt"> Income Taxes</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">There have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2008.<font class="_mt"> NS anticipates that the IRS will complete its examination of NS’ 2006 and 2007 federal income tax returns by the end of 2009.</font></font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
401000000
234000000
767000000
302000000
428000000
178000000
63000000
-26000000
93000000
111000000
-80000000
-184000000
332000000
111000000
348000000
118000000
254000000
288000000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">6.<font class="_mt"> Investments</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;"> </font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Investment in Conrail, Inc.</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Through a limited liability company, Norfolk Southern and CSX Corporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary is Consolidated Rail Corporation (CRC).<font class="_mt"> NS has a 58% economic and 50% voting interest in the jointly owned entity, and CSX has the remainder of the economic and voting interests.<font class="_mt"> NS’ investment in Conrail was $892 million at September 30, 2009, and $868 million at December 31, 2008.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -0.25in 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">CRC owns and operates certain properties (the Shared Assets Areas) for the joint and exclusive benefit of Norfolk Southern Railway Company (NSR) and CSX Transportation, Inc. (CSXT).<font class="_mt"> The costs of operating the Shared Assets Areas are borne by NSR and CSXT based on usage.<font class="_mt"> In addition, NSR and CSXT pay CRC a fee for access to the Shared Assets Areas.<font class="_mt"> “Purchased services and rents” and “Fuel” include expenses for the use of the Shared Assets Areas totaling $32 million and $34 million in the third quarters of 2009 and 2008, respectively, and $92 million and $98 million for the first nine months of 2009 and 2008, respectively.<font class="_mt"> NS’ equity in earnings of Conrail, net of amortization, included in “Other income – net” was $7 million and $8 million in the third quarters of 2009 and 2008, respectively, and $24 million and $23 million for the first nine months of 2009 and 2008, respectively.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">“Accounts payable” includes $98 million at September 30, 2009, and $82 million at December 31, 2008, due to Conrail for the operation of the Shared Assets Areas.<font class="_mt"> In addition, “Other liabilities” includes $133 million at both September 30, 2009, and December 31, 2008, for long-term advances from Conrail, maturing 2035, that bear interest at an average rate of 4.4%.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">Investment in Pan Am Southern LLC</font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">During the second quarter of 2009, NS and Pan Am Railways, Inc. (Pan Am) formed a joint venture, Pan Am Southern LLC (PAS), a railroad company in which each has a 50% equity interest.<font class="_mt"> Pan Am contributed to PAS a 155-mile main line track that runs between Mechanicville, New York and Ayer, Massachusetts, along with 281 miles of secondary and branch lines, including trackage rights in New York, Connecticut, Massachusetts, New Hampshire, and Vermont (collectively, the “PAS Lines”), and as of September 30, 2009, NS has contributed cash and other property with a combined value of approximately $63 million and has committed to contribute an additional $77 million in cash and other property over the next three years, $75 million of which is evidenced by notes payable to PAS.<font class="_mt"> A significant portion of NS’ contributions will be used for capital improvements to the PAS Lines and the related construction of new intermodal and automotive terminals in the Albany, New York and the Ayer, Massachusetts areas.<font class="_mt"> PAS is jointly controlled by NS and Pan Am; accordingly, NS<font class="_mt"> accounts for its interest in PAS using the equity method of accounting.</font></font></font></font></font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
2075000000
708000000
1788000000
598000000
16690000000
17009000000
26297000000
27075000000
2105000000
1866000000
6183000000
6685000000
484000000
380000000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">7.<font class="_mt"> Long-term Debt</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">In the first nine months of 2009, NS repaid $200 million under its accounts receivable securitization facility.<font class="_mt"> At September 30, 2009, and December 31, 2008, the amounts outstanding under the facility were $100 million (at an average variable interest rate of 1.47%) and $300 million (at an average variable interest rate of 3.01%), respectively.<font class="_mt"> In October 2009, NS renewed and amended its accounts receivable securitization facility, with a new 364-day term to run until October 2010.<font class="_mt"> NS reduced the total amount that can be borrowed from $500 million to $350 million to more closely match its liquidity requirements and receivables profile.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">During the second quarter of 2009, NS issued $500 million of unsecured notes at 5.90% due 2019 pursuant to its automatic shelf registration statement described below.<font class="_mt"> The net proceeds from the offering were $496 million after deducting the purchase discount and expenses.<font class="_mt"> NS also issued a total of $75 million in non-interest bearing notes payable with maturity dates beginning in 2010 and ending in 2012 as part of its total investment in Pan Am Southern LLC.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">During the first quarter of 2009, NS issued $500 million of unsecured notes at 5.75% due 2016 in a private offering.<font class="_mt"> The net proceeds from the offering were approximately $494 million after deducting the purchase discount and expenses.<font class="_mt"> During the third quarter of 2009, NS offered to exchange these unregistered securities with essentially identical securities registered under the Securities Act of 1933.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">NS has authority from its Board of Directors to issue an additional $500 million of debt or equity securities through public or private sale.<font class="_mt"> During the first quarter of 2009, NS filed a Form S-3 automatic shelf registration statement for well-known seasoned issuers under which, as of September 30, 2009, up to $500 million could be issued under this authority.</font></font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
1779000000
2067000000
-914000000
-27000000
-810000000
-967000000
2075000000
1375000000
5888000000
2000000000
4450000000
1501000000
2271000000
894000000
1413000000
562000000
168000000
55000000
272000000
285000000
220000000
287000000
2030000000
1892000000
92000000
39000000
90000000
37000000
-254000000
-10000000
899000000
0
338000000
374000000
34000000
119000000
1104000000
919000000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">8.<font class="_mt"> Pensions and Other Postretirement Benefits</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Norfolk Southern and certain subsidiaries have both funded and unfunded defined benefit pension plans covering principally salaried employees.<font class="_mt"> Norfolk Southern and certain subsidiaries also provide specified health care and death benefits to eligible retired employees and their dependents.<font class="_mt"> 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.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><u><font class="_mt" style="font-size: 11pt;">Pension and Other Postretirement Benefit Cost Components</font></u></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Three months ended September 30,</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Pension Benefits</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Other Benefits</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><i><font class="_mt" style="font-size: 11pt;">($ in millions)</font></i></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Service cost</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">7 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">6 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">4 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">4 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Interest cost</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">26 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">25 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">15 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">13 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Expected return on plan assets</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(39)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(43)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(4)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(4)</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Amortization of prior service cost (benefit)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">-- </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">-- </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(2)</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Amortization of net losses</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">6 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">8 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">6 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Net (benefit) cost</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">-- </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(10)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">23 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">17 </font></p> </td> </tr> </table> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <font class="_mt" style="font-size: 11pt; font-family: 'Times New Roman','serif';"><br clear="all" /></font> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Nine months ended September 30,</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2008</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Pension Benefits</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="4"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">Other Benefits</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="8"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><i><font class="_mt" style="font-size: 11pt;">($ in millions)</font></i></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Service cost</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">20 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">18 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">12 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">12 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Interest cost</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">76 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">75 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">43 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">38 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Expected return on plan assets</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(116)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(129)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(11)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(11)</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Amortization of prior service cost (benefit)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">2 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">2 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(1)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(7)</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Amortization of net losses</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">19 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">5 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">26 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">19 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Net (benefit) cost</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(29)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">69 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -9pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$ </font></p> </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.7in; padding-top: 0in; border-bottom: windowtext 1.5pt double;" valign="top" width="67"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in -1.8pt 0pt 0in; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">51 </font></p> </td> </tr> </table> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">The estimated amortization of certain items from accumulated comprehensive income (loss) into periodic benefit cost in 2009 is as follows:</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <table class="MsoTableGrid" style="border-right: medium none; border-top: medium none; font-size: 10pt; border-left: medium none; border-bottom: medium none; font-family: 'Times New Roman','serif'; border-collapse: separate;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Nine Months</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Fourth</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Year</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Ended</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Quarter of</font></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><font class="_mt" style="font-size: 11pt;">Ending</font></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">September 30, 2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">2009</font></u></b></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="2"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><b><u><font class="_mt" style="font-size: 11pt;">December 31, 2009</font></u></b></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; padding-top: 0in;" valign="top" colspan="6"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: center;" align="center"><i><font class="_mt" style="font-size: 11pt;">($ in millions)</font></i></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Defined benefit pension plans:</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Prior service cost</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">2 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">1 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">3 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Estimated net losses</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">19 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">6 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">25 </font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;">Defined benefit post retirement plans:</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"> </p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Prior service benefit</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(1)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(1)</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">(2)</font></p> </td> </tr> <tr> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap;"><font class="_mt" style="font-size: 11pt;"> Estimated net losses</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 34.2pt; padding-top: 0in;" valign="top" width="46"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">26 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">9 </font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">$</font></p> </td> <td style="padding-right: 5.4pt; border-top: 0px; padding-left: 5.4pt; padding-bottom: 0in; width: 84.6pt; padding-top: 0in;" valign="top" width="113"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; white-space: nowrap; text-align: right;" align="right"><font class="_mt" style="font-size: 11pt;">35 </font></p> </td> </tr> </table> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
1225000000
990000000
74000000
61000000
224000000
32000000
1264000000
520000000
727000000
303000000
22247000000
22490000000
1126000000
675000000
8501000000
8848000000
8159000000
2894000000
5863000000
2063000000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">5.<font class="_mt"> Stock Repurchase Program</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">In March 2007, NS’ Board of Directors amended NS’ share repurchase program, increasing the authorized amount of share repurchases from 50 million to 75 million shares and shortening the term of the program from 2015 to 2010.<font class="_mt"> The timing and volume of purchases is guided by management’s assessment of market conditions and other pertinent facts.<font class="_mt"> Any near-term purchases under the program are expected to be made with internally generated cash or proceeds from borrowings.<font class="_mt"> There were no shares repurchased under this program in the first nine months of 2009.<font class="_mt"> NS repurchased and retired 15.2 million shares in the first nine months of 2008, at a cost of $899 million.<font class="_mt"> Since inception of this program in 2006, NS has repurchased and retired 64.7 million shares of common stock at a total cost of $3.3 billion.</font></font></font></font></font></font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><b><font class="_mt" style="font-size: 11pt;">4.<font class="_mt"> Stockholders’ Equity</font></font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif';"><font class="_mt" style="font-size: 11pt;">Common stock is reported net of shares held by consolidated subsidiaries of Norfolk Southern, which at September 30, 2009, and December 31, 2008, amounted to 20,473,569 and 20,579,088 shares, respectively, with a cost of $19 million for both periods.</font></p> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
9607000000
10066000000
261000000
219000000