0000702165 2009-03-31 0000702165 2008-12-31 0000702165 2009-12-31 0000702165 2009-01-01 2009-03-31 0000702165 2010-03-31 0000702165 2010-01-01 2010-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares false --12-31 Q1 2010 2010-03-31 10-Q 0000702165 370055972 Large Accelerated Filer Norfolk Southern Corporation 283000000 456000000 3000000 -16000000 200000000 191000000 164000000 180000000 -16000000 147000000 355000000 335000000 <div> <div> <div> 5 . Stock Repurchase Program   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. The timing and volume of purchases is guided by management’s assessment of market conditions and other pertinent facts. Any near-term purchases under the program are expected to be made with internally generated cash or proceeds from borrowings. There were no shares repurchased under this program in the first quarter of 2010 and 2009. 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. </div> </div> </div>

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<div> <div> 11. Commitments and Contingencies   Lawsuits   Norfolk Southern and/or certain subsidiaries are defendants in numerous lawsuits and other claims relating principally to railroad operations. 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. 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. 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. Any adjustments to the recorded liability will be reflected in earnings in the periods in which such adjustments are known.   Casualty Claims   Casualty claims include employee personal injury and occupational claims as well as third-party claims, all exclusive of legal costs. 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. Job-related accidental injury and occupational claims are subject to the Federal Employers’ Liability Act (FELA), which is applicable only to railroads. FELA’s fault-based system produces results that are unpredictable and inconsistent as compared with a no-fault workers’ compensation system. The variability inherent in this system could result in actual costs being different from the liability recorded. 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. In all cases, NS records a liability when the expected loss for the claim is both probable and estimable.   The Consolidated Balance Sheets reflect long-term receivables for estimated recoveries from NS’ insurance carriers for claims associated with the January 6, 2005, derailment in Graniteville, SC. NS is currently engaged in arbitration with one of its insurance carriers that failed to respond to an insurance claim submitted by NS. NS believes these expenses are covered by the insurance policy and that recovery of the contested portion ($43 million) of the recorded recoveries is probable. During the first quarter, NS settled an arbitration claim with another insurance carrier with no adverse effect on NS’ financial position, results of operations, or liquidity.   Employee personal injury claims – The largest component of casualties and other claims expense is employee personal injury costs. 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. The actuarial firm studies NS’ historical patterns of reserving for claims and subsequent settlements, taking into account relevant outside influences. The actuary uses the results of these analyses to estimate the ultimate amount of the liability, which includes amounts for incurred but unasserted claims. NS adjusts its liability quarterly based upon management’s assessment and the results of the study. Recent actuarial studies have reflected favorable claims development and accordingly, those changes in estimates have reduced the first quarter cost related to personal injuries to $16 million in 2010 from $20 million in 2009. 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.   Occupational claims – 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. Many such claims are being asserted by former or retired employees, some of whom have not been employed in the rail industry for decades. 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. 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. The actuarial firm’s estimate of ultimate loss includes a provision for those claims that have been incurred but not reported. This provision is derived by analyzing industry data and projecting NS’ experience into the future as far as can be reasonably determined. NS adjusts its liability quarterly based upon management’s assessment and the results of the study. However, it is possible that the recorded liability may not be adequate to cover the future payment of claims. Adjustments to the recorded liability are reflected in operating expenses in the periods in which such adjustments become known.   Third-party claims – 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. 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. The actuarial estimate includes a provision for claims that have been incurred but have not yet been reported. Each quarter NS adjusts its liability based upon management’s assessment and the results of the study. 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.   Environmental Matters   NS is subject to various jurisdictions’ environmental laws and regulations. It is NS’ policy to record a liability where such liability or loss is probable and its amount can be estimated reasonably. 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. Environmental engineers regularly participate in ongoing evaluations of all known sites and in determining any necessary adjustments to liability estimates. NS also has an Environmental Policy Council, composed of senior managers, to oversee and interpret its environmental policy.   NS’ Consolidated Balance Sheets include liabilities for environmental exposures in the amount of $37 million at March 31, 2010, and $32 million at December 31, 2009 (of which $12 million is classified as a current liability at the end of each period). At March 31, 2010, the liability represents NS’ estimate of the probable cleanup and remediation costs based on available information at 144 known locations. As of that date, 12 sites accounted for $19 million of the liability, and no individual site was considered to be material. 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.   At 30 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.   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.   The risk of incurring environmental liability – for acts and omissions, past, present and future – is inherent in the railroad business. 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. 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. 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. Moreover, lawsuits and claims involving these and potentially other unidentified environmental sites and matters are likely to arise from time to time. The resulting liabilities could have a significant effect on NS’ financial position, results of operations, or liquidity in a particular year or quarter.   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. Although NS’ motion to dismiss for failure to allege sufficient facts was granted, DOJ was given leave to, and did, amend its complaint. On January 22, 2010, NS reached an agreement with the DOJ on a Consent Decree and on March 31, 2010, the Consent Decree was published with a 30-day public comment period. 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.   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. 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.   Insurance   Norfolk Southern obtains on behalf of itself and its subsidiaries insurance for potential losses for third-party liability and first-party property damages. 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.   Purchase Commitments <div>  </div> <div> At March 31, 2010, NS had outstanding purchase commitments of approximately $229 million primarily for long-term service contracts through 2019, as well as freight cars, track material and RoadRailer® trailers in connection with its capital programs through 2012. </div> <div> </div> </div> </div>

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<div> <div> <div> 9. Comprehensive Income   NS’ total comprehensive income was as follows:   <table class="MsoNormalTable" style="font-size: 11pt; font-family: 'Calibri','sans-serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr style="page-break-inside: avoid;"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in;" valign="top" width="240">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.8in; padding-top: 0in;" valign="top" width="173" colspan="4"> Three Months Ended </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: medium none;" width="2">   </td> </tr> <tr style="page-break-inside: avoid;"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in;" valign="top" width="240">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.8in; padding-top: 0in;" valign="top" width="173" colspan="4"> March 31, </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: medium none;" width="2">   </td> </tr> <tr style="page-break-inside: avoid;"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in;" valign="top" width="240">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.9in; padding-top: 0in;" valign="top" width="86" colspan="2"> 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.9in; padding-top: 0in;" valign="top" width="86" colspan="2"> 2009 </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: medium none;" width="2">   </td> </tr> <tr style="page-break-inside: avoid;"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in;" valign="top" width="240">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 131.4pt; padding-top: 0in;" valign="top" width="175" colspan="5"> ($ in millions) </td> </tr> <tr style="height: 2.9pt; page-break-inside: avoid;"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in; height: 2.9pt;" valign="top" width="240">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 131.4pt; padding-top: 0in; height: 2.9pt;" valign="top" width="175" colspan="5">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in;" valign="top" width="240"> Net income </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.6in; padding-top: 0in;" valign="bottom" width="58"> 257 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.6in; padding-top: 0in;" valign="bottom" width="58"> 177 </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: medium none;" width="2">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in;" valign="top" width="240"> Other comprehensive income </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.6in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="58"> 19 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in;" valign="top" width="29">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.6in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="58"> 9 </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: medium none;" width="2">   </td> </tr> <tr style="height: 4.45pt;"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in; height: 4.45pt;" valign="top" width="240">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 4.45pt;" valign="top" width="29">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.6in; padding-top: 0in; border-bottom: medium none; height: 4.45pt;" valign="top" width="58">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 4.45pt;" valign="top" width="29">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.6in; padding-top: 0in; border-bottom: medium none; height: 4.45pt;" valign="top" width="58">   </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: medium none;" width="2">   </td> </tr> <tr style="height: 13.05pt;"> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.5in; padding-top: 0in; height: 13.05pt;" valign="bottom" width="240"> Total comprehensive income </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 13.05pt;" valign="bottom" width="29"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.6in; padding-top: 0in; border-bottom: windowtext 3px double; height: 13.05pt;" valign="bottom" width="58"> 276 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 13.05pt;" valign="bottom" width="29"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.6in; padding-top: 0in; border-bottom: windowtext 3px double; height: 13.05pt;" valign="bottom" width="58"> 186 </td> <td style="border-right: medium none; padding-right: 0in; border-top: medium none; padding-left: 0in; padding-bottom: 0in; border-left: medium none; padding-top: 0in; border-bottom: medium none;" width="2">   </td> </tr> </table>   “Other comprehensive income" in 2010 and 2009 reflects primarily, net of tax, the amortization of the actuarial net losses and prior service costs for the pension and other postretirement benefit plans. </div> </div> </div>

207000000

204000000

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6747000000

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206000000

<div> <div> <div class="alignRight"> <div> <div> 1. Stock-Based Compensation   In the first quarter of 2010, 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. Stock-based compensation expense was $40 million during the first quarter of 2010 and $15 million during the same period of 2009. The total tax effects recognized in income in relation to stock-based compensation were net benefits of $13 million and $3 million for the quarters ended March 31, 2010 and 2009, respectively.   Stock Options   In the first quarter of 2010, 824,900 options were granted under the LTIP and 259,800 options were granted under the TSOP. In each case, the grant price was $47.76, which was the greater of the average fair market value of Norfolk Southern common stock (Common Stock) or the closing price of the Common Stock on the effective date of the grant, and the options have a term of ten years. The options granted under the LTIP and TSOP in 2010 may not be exercised prior to the fourth and third anniversaries of the date of grant, respectively. 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. Dividend equivalent payments are not made on TSOP options.   The fair value of each option award in 2010 was measured on the date of grant using a lattice-based option valuation model. Expected volatilities are based on implied volatilities from traded options on Common Stock and historical volatility of Common Stock. NS uses historical data to estimate option exercises and employee terminations within the valuation model. 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. The average risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. A dividend yield of zero was used for LTIP options during the four-year period in which dividend equivalent payments are made. A dividend yield of 2.89% was used for LTIP options for periods where no dividend equivalent payments are made as well as for TSOP options which do not receive dividend equivalents. The assumptions for the 2010 LTIP and TSOP grants are shown in the following table: <table class="MsoNormalTable" style="font-size: 11pt; font-family: 'Calibri','sans-serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> 2010 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247"> Expected volatility range </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> 29% - 32% </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247"> Average expected volatility </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> 32% </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247"> Average expected option life </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> 8.3 years </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247"> Average risk-free interest rate </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> 3.63% </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247"> LTIP per-share grant-date fair value </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> $18.54 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 185.4pt; padding-top: 0in;" valign="top" width="247"> TSOP per-share grant-date fair value </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96"> $14.91 </td> </tr> </table>   For the first three months of 2010, options relating to 592,110 shares were exercised, yielding $12 million of cash proceeds and $7 million of tax benefit recognized as additional paid-in capital. For the first three months of 2009, options relating to 283,961 shares were exercised, yielding $7 million of cash proceeds and $2 million of tax benefit.   Restricted Stock Units and Restricted Shares   There were 168,250 restricted stock units granted in 2010, with an average grant-date fair value of $47.76 and a five-year restriction period. The restricted stock units granted in 2010 will be settled through the issuance of shares of Common Stock. There were no restricted shares granted in 2010.   During the first quarter of 2010, 286,709 restricted stock units were earned and paid out in cash with a weighted average fair value of $48.88. Also earned and distributed were 433,236 restricted shares with a weighted-average grant-date fair value of $34.10. The total related tax benefit recognized as additional paid-in capital was $2 million in the first quarter of 2010.   During the first quarter of 2009, 318,950 restricted stock units were earned and paid out in cash with a weighted average fair value of $36.50. Also earned and distributed were 318,950 restricted shares with a weighted-average grant-date fair value of $49.61. The total related tax expense recognized as additional paid-in capital was $1 million in the first quarter of 2009.   Performance Share Units   PSUs provide for awards based on achievement of certain predetermined corporate performance goals at the end of a three-year cycle. During the first quarter of 2010, there were 824,900 PSUs granted with a grant-date fair value of $47.76. The PSUs granted in 2010 and 2009 will be paid in the form of shares; however, one-half of the 2008 PSU grants earned will be paid in the form of shares of Common Stock, with the other half to be paid in cash.   During the first quarter of 2010, 851,893 PSUs were earned and paid out, one-half in shares of Common Stock and one-half in cash. These PSUs had a grant-date fair value of $49.56 per unit and a fair value at payout of $47.76 per unit. The total related tax expense recognized as additional paid-in capital was less than $1 million for the first quarter of 2010.   During the first quarter of 2009, 983,965 PSUs were earned and paid out, one-half in shares of Common Stock and one-half in cash. These PSUs had a grant-date fair value of $49.43 per unit and a fair value at payout of $38.71 per unit. The total related tax benefit recognized in additional paid-in capital was $2 million in the first quarter of 2009. </div> </div> </div> </div> </div>

0.48

0.69

0.47

0.68

<div> <div> <div> 3. Earnings Per Share   The following tables set forth the calculations of basic and diluted earnings per share:   <table class="MsoNormalTable" style="font-size: 11pt; font-family: 'Calibri','sans-serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 156.1pt; padding-top: 0in;" valign="top" width="208" colspan="4"> Three Months Ended </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 156.1pt; padding-top: 0in;" valign="top" width="208" colspan="4"> March 31, </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.6pt; padding-top: 0in;" valign="top" width="105" colspan="2"> 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 77.5pt; padding-top: 0in;" valign="top" width="103" colspan="2"> 2009 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 156.1pt; padding-top: 0in;" valign="top" width="208" colspan="4"> ($ in millions except per share, shares in millions) </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325"> Basic earnings per share: </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">    Income available to common stockholders </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81"> 255 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79"> 175 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">    Weighted-average shares outstanding </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.7pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="81"> 369.5 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 59.6pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="79"> 366.2 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">             Basic earnings per share </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.7pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="81"> 0.69 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 59.6pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="79"> 0.48 </td> </tr> </table>   As required under the provisions of ASC 260-10, “Earnings Per Share,” income available to common stockholders for the three months ended March 31, 2010 and 2009 reflects a $2 million reduction from net income for the effect of dividend equivalent payments made to holders of stock options.   <table class="MsoNormalTable" style="font-size: 11pt; font-family: 'Calibri','sans-serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 156.1pt; padding-top: 0in;" valign="top" width="208" colspan="4"> Three Months Ended </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 156.1pt; padding-top: 0in;" valign="top" width="208" colspan="4"> March 31, </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.6pt; padding-top: 0in;" valign="top" width="105" colspan="2"> 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 77.5pt; padding-top: 0in;" valign="top" width="103" colspan="2"> 2009 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 156.1pt; padding-top: 0in;" valign="top" width="208" colspan="4"> ($ in millions except per share, shares in millions) </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325"> Diluted earnings per share: </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">    Income available to common stockholders </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.7pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="81"> 255 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 59.6pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="79"> 175 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">    Weighted-average shares outstanding per above </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.7pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="81"> 369.5 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 59.6pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="79"> 366.2 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">    Dilutive effect of outstanding options and </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">      share-settled awards (as determined by the </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">      application of the two-class or treasury stock </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.7pt; padding-top: 0in;" valign="top" width="81">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 59.6pt; padding-top: 0in;" valign="top" width="79">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">      method, as appropriate) </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.7pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="81"> 5.4 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 59.6pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="79"> 4.9 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">    Adjusted weighted-average shares outstanding </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.7pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="81"> 374.9 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 59.6pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="79"> 371.1 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 243.9pt; padding-top: 0in;" valign="top" width="325">             Diluted earnings per share </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 60.7pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="81"> 0.68 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 17.9pt; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 59.6pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="79"> 0.47 </td> </tr> </table>   As required under the provisions of ASC 260-10, diluted earnings per share for the three months ended March 31, 2010 and 2009, was calculated under the more dilutive two-class method (as compared to the treasury stock method) and accordingly, income available to common stockholders for both periods reflects a $2 million reduction from net income for dividend equivalent payments. The diluted calculations exclude options having exercise prices exceeding the average market price of Common Stock as follows: zero in 2010 and 5.6 million in 2009. </div> </div> </div>

<div> <div> 10. Fair Value   Fair Value Measurements   ASC 820-10, “Fair Value Measurements,” established a framework for measuring fair value and a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:   <div> <table class="MsoNormalTable" style="font-size: 10pt; margin-left: 0.5in; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> Level 1 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 418.5pt; padding-top: 0in;" width="558"> Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that NS has the ability to access.   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> Level 2 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 418.5pt; padding-top: 0in;" valign="top" width="558"> Inputs to the valuation methodology include: <ul style="margin-top: 0in; margin-bottom: 0in;" type="disc"> <li class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 12pt; font-family: 'Times New Roman','serif'; tab-stops: list .5in left 5.9in 6.0in 6.5in;"> Quoted prices for similar assets or liabilities in active markets; </li> <li class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 12pt; font-family: 'Times New Roman','serif'; tab-stops: list .5in left 5.9in 6.0in 6.5in;"> Quoted prices for identical or similar assets or liabilities in inactive markets; </li> <li class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 12pt; font-family: 'Times New Roman','serif'; tab-stops: list .5in left 5.9in 6.0in 6.5in;"> Inputs other than quoted prices that are observable for the asset or liability; and </li> <li class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 12pt; font-family: 'Times New Roman','serif'; tab-stops: list .5in left 5.9in 6.0in 6.5in;"> Inputs that are derived principally from or corroborated by observable market data by correlation or other means. </li> </ul>   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 418.5pt; padding-top: 0in;" valign="top" width="558"> If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> Level 3 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 418.5pt; padding-top: 0in;" valign="top" width="558"> Inputs to the valuation methodology are unobservable and significant to the fair value measurement. </td> </tr> </table> </div>   The asset’s or liability’s fair value measurement level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At March 31, 2010, and December 31, 2009 for assets measured at fair value on a recurring basis, there were $225 million and $90 million of available-for-sale securities as valued under level 2 of the fair value hierarchy, respectively. There were no such assets valued under level 1 or level 3 valuation techniques.   Fair Values of Financial Instruments   In accordance with ASC 825, “Financial Instruments,” NS has evaluated the fair values of financial instruments and methods used to determine those fair values. The fair values of “Cash and cash equivalents,” “Short-term investments,” “Accounts receivable,” “Accounts payable,” and “Short-term debt” approximate carrying values because of the short maturity of these financial instruments. The carrying value of corporate-owned life insurance is recorded at cash surrender value and, accordingly, approximates fair value. The carrying amounts and estimated fair values for the remaining financial instruments, excluding derivatives and investments accounted for under the equity method, consisted of the following at March 31, 2010, and December 31, 2009:   <div> <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.6pt; padding-top: 0in;" valign="top" width="210" colspan="5"> March 31, 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.6pt; padding-top: 0in;" valign="top" width="210" colspan="5"> December 31, 2009 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="3">    Carrying </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="2"> Fair </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="3">        Carrying </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="2"> Fair </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="3">    Amount </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="2"> Value </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="3">        Amount </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 78.8pt; padding-top: 0in;" valign="top" width="105" colspan="2"> Value </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 315.2pt; padding-top: 0in;" valign="top" width="420" colspan="10"> ($ in millions) </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 27.9pt; padding-top: 0in;" valign="top" width="37">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 45pt; padding-top: 0in;" valign="top" width="60">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48" colspan="2">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66" colspan="2">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 35.1pt; padding-top: 0in;" valign="top" width="47">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 42.9pt; padding-top: 0in;" valign="top" width="57">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 34.5pt; padding-top: 0in;" valign="top" width="46">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 44.3pt; padding-top: 0in;" valign="top" width="59">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> Investments </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 27.9pt; padding-top: 0in;" valign="top" width="37"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 45pt; padding-top: 0in;" valign="top" width="60"> 207  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48" colspan="2"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66" colspan="2"> 229  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 35.1pt; padding-top: 0in;" valign="top" width="47"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 42.9pt; padding-top: 0in;" valign="top" width="57"> 237  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 34.5pt; padding-top: 0in;" valign="top" width="46"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 44.3pt; padding-top: 0in;" valign="top" width="59"> 260  </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> Long-term debt </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 27.9pt; padding-top: 0in;" valign="top" width="37"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 45pt; padding-top: 0in;" valign="top" width="60"> (7,027) </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48" colspan="2"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66" colspan="2">  (7,968) </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 35.1pt; padding-top: 0in;" valign="top" width="47"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 42.9pt; padding-top: 0in;" valign="top" width="57"> (7,053) </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 34.5pt; padding-top: 0in;" valign="top" width="46"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 44.3pt; padding-top: 0in;" valign="top" width="59"> (8,048) </td> </tr> <tr> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="144"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="37"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="60"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="8"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="40"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="65"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="1"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="47"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="60"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="46"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="60"> </td> </tr> </table> </div> Underlying net assets were used to estimate the fair value of investments with the exception of notes receivable, which are based on future discounted cash flows. 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. <div>  </div> <div> Carrying amounts of available-for-sale securities reflect unrealized holding losses of less than $1 million on March 31, 2010, and December 31, 2009. Sales of “available-for-sale” securities were $20 million and zero for the three months ended March 31, 2010 and 2009, respectively. </div> <div> </div> </div> </div>

159000000

254000000

-2000000

-1000000

<div> <div> <div class="alignRight"> <div> 2. Income Taxes   During the first quarter of 2010, the Patient Protection and Affordable Care Act, and the Health Care and Education Reconciliation Act of 2010 were signed into law. Provisions of the Acts eliminate, after 2012, the tax deduction available for reimbursed prescription drug expenses under the Medicare Part D retiree drug subsidy program. As required by ASC 740, “Income Taxes,” NS recorded a $27 million charge to deferred tax expense.   There have been no material changes to the balance of unrecognized tax benefits reported at December 31, 2009. </div> </div> </div> </div>

23000000

106000000

199000000

39000000

-101000000

35000000

17000000

-107000000

209000000

117000000

119000000

49000000

50000000

639000000

699000000

17016000000

17166000000

27369000000

27730000000

1789000000

2193000000

6679000000

6379000000

374000000

648000000

2164000000

2166000000

156000000

-233000000

-244000000

-360000000

354000000

758000000

1560000000

1683000000

383000000

555000000

88000000

68000000

316000000

221000000

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1801000000

1794000000

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20000000

2000000

-51000000

125000000

126000000

155000000

243000000

256000000

<div> <div> <div> 8. Pensions and Other Postretirement Benefits   Norfolk Southern and certain subsidiaries have both funded and unfunded defined benefit pension plans covering principally salaried employees. Norfolk Southern and certain subsidiaries also provide specified health care and death benefits to eligible retired employees and their dependents. 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.   Pension and Other Postretirement Benefit Cost Components </div> <div> </div> <div> <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="571" border="0"> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288" colspan="8"> Three months ended March 31, </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 2009 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 2009 </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144" colspan="4"> Pension Benefits </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144" colspan="4"> Other Benefits </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288" colspan="8"> ($ in millions) </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48">   </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283"> Service cost </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 7  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 7  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 4  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 5  </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283"> Interest cost </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 24  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 25  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 15  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 14  </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283"> Expected return on plan assets </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> (36) </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> (39) </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> (4) </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> (4) </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283"> Amortization of prior service cost </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 1  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> 1  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> --  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in;" valign="top" width="48"> --  </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283"> Amortization of net losses </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="48"> 12  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="48"> 6  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="48"> 12  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24">   </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="48"> 8  </td> </tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2.95in; padding-top: 0in;" valign="top" width="283">        Net cost </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="48"> 8  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="48"> --  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="48"> 27  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="top" width="24"> $ </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.5in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="48"> 23  </td> </tr> </table> </div> </div> </div>

500000000

1000000

6000000

21000000

177000000

257000000

22643000000

22697000000

225000000

128000000

9027000000

9156000000

1943000000

2238000000

100000000

90000000

225000000

10353000000

10564000000

109000000

252000000