0000702165 2005-11-01 2010-09-30 0000702165 nsc:FederalGovernmentBondMember 2010-09-30 0000702165 nsc:FederalGovernmentBondMember 2009-12-31 0000702165 nsc:PanAmSouthernLlcMember 2010-09-30 0000702165 nsc:ConrailVotingMember 2010-09-30 0000702165 nsc:ConrailEquityMember 2010-09-30 0000702165 nsc:PensionBenefitsMember 2010-07-01 2010-09-30 0000702165 nsc:OpebMember 2010-07-01 2010-09-30 0000702165 nsc:PensionBenefitsMember 2010-01-01 2010-09-30 0000702165 nsc:OpebMember 2010-01-01 2010-09-30 0000702165 nsc:PensionBenefitsMember 2009-07-01 2009-09-30 0000702165 nsc:OpebMember 2009-07-01 2009-09-30 0000702165 nsc:PensionBenefitsMember 2009-01-01 2009-09-30 0000702165 nsc:OpebMember 2009-01-01 2009-09-30 0000702165 2009-09-30 0000702165 2008-12-31 0000702165 us-gaap:USTreasuryAndGovernmentMember 2010-09-30 0000702165 us-gaap:CommercialPaperMember 2010-09-30 0000702165 us-gaap:CertificatesOfDepositMember 2010-09-30 0000702165 us-gaap:AllOtherCorporateBondsMember 2010-09-30 0000702165 us-gaap:USTreasuryAndGovernmentMember 2009-12-31 0000702165 us-gaap:CommercialPaperMember 2009-12-31 0000702165 us-gaap:CertificatesOfDepositMember 2009-12-31 0000702165 us-gaap:AllOtherCorporateBondsMember 2009-12-31 0000702165 2005-11-30 0000702165 2007-03-31 0000702165 nsc:TsopMember 2010-01-01 2010-09-30 0000702165 nsc:LtipMember 2010-01-01 2010-09-30 0000702165 nsc:RsuMember 2010-07-01 2010-09-30 0000702165 nsc:RsuMember 2009-07-01 2009-09-30 0000702165 nsc:RsuMember 2009-01-01 2009-09-30 0000702165 2010-04-01 2010-06-30 0000702165 2010-01-01 2010-03-31 0000702165 2009-04-01 2009-06-30 0000702165 2009-01-01 2009-03-31 0000702165 2010-07-27 0000702165 nsc:PsuMember 2009-01-01 2009-09-30 0000702165 nsc:RsuMember 2010-01-01 2010-09-30 0000702165 nsc:PsuMember 2010-01-01 2010-09-30 0000702165 2010-07-01 2010-09-30 0000702165 2009-07-01 2009-09-30 0000702165 2009-01-01 2009-09-30 0000702165 2009-12-31 0000702165 2010-09-30 0000702165 2010-01-01 2010-09-30 iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares false --12-31 Q3 2010 2010-09-30 10-Q 0000702165 363372120 Large Accelerated Filer NORFOLK SOUTHERN CORP 200000000 100000000 31000000 1000000000 7 8 5 3 109000000 <div> <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="643" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.5pt; padding-top: 0in;" valign="top" width="210" colspan="6">     Three Months Ended</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153pt; padding-top: 0in;" valign="top" width="204" colspan="4">            Nine Months Ended</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.5pt; padding-top: 0in;" valign="top" width="210" colspan="6">      September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153pt; padding-top: 0in;" valign="top" width="204" colspan="4">              September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 76.5pt; padding-top: 0in;" valign="top" width="102" colspan="3">         2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" valign="top" width="108" colspan="3">   2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2">             2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" valign="top" width="108" colspan="2">           2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 310.5pt; padding-top: 0in;" valign="top" width="414" colspan="10">        ($ in millions)</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in; height: 0.1in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="54">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="42" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="54">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in; height: 0.1in;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="54">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in; height: 0.1in;" valign="top" width="48">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 45pt; padding-top: 0in; height: 0.1in;" valign="top" width="60">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229"> Net income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in;" valign="top" width="54"> 445</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" colspan="2"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in;" valign="top" width="54"> 303</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"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in;" valign="top" width="54"> 1,094</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: 45pt; padding-top: 0in;" valign="top" width="60"> 727</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229"> Other comprehensive income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 40.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="54"> 16</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" colspan="2">  </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: 40.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="54"> 10</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">  </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: 40.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="54"> 49</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="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 45pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="60"> 30</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">    Total comprehensive income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</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: 40.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="54"> 461</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" colspan="2"> $</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: 40.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="54"> 313</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"> $</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: 40.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="54"> 1,143</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="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 45pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="60"> 757</td></tr> <tr><td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="229"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="54"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="18"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="54"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="42"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="54"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="48"> </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> 43000000 four 0.044 0.044 104000000 128000000 149 12 18000000 five 33 92000000 32000000 88000000 30000000 <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> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><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"> September 30, 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 162.8pt; padding-top: 0in;" valign="top" width="217" colspan="6"> 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: 84pt; padding-top: 0in;" valign="top" width="112" colspan="3"> 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: 84pt; padding-top: 0in;" valign="top" width="112" colspan="3"> 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: 4.45in; padding-top: 0in;" valign="top" width="427" colspan="11"> ($ 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: 49.5pt; padding-top: 0in;" valign="top" width="66">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" 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: 45.9pt; padding-top: 0in;" valign="top" width="61" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66">  </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: 49.5pt; padding-top: 0in;" valign="top" width="66"> 286 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" 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">  320 </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: 45.9pt; padding-top: 0in;" valign="top" width="61" colspan="2"> 237 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 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: 49.5pt; padding-top: 0in;" valign="top" width="66"> (6,935)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" 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"> (8,427)</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: 45.9pt; padding-top: 0in;" valign="top" width="61" colspan="2"> (7,053)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66">  (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="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="2"> </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="57"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="4"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="42"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td></tr></table> </div> 6 12 47.76 47.76 38.71 47.76 1155000000 481000000 1805000000 714000000 924000000 940000000 24000000 7000000 16000000 3000000 34000000 7000000 19000000 2000000 22000000 -15000000 493000000 149000000 572000000 190000000 164000000 179000000 27000000 50000000 <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: 203.4pt; padding-top: 0in;" valign="top" width="271">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144">                    2010</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in; height: 0.1in;" valign="top" width="271">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in; height: 0.1in;" valign="top" width="144">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Expected volatility range</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 29% - 32%</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Average expected volatility</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 32%</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Average expected option life</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 8.3 years</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Average risk-free interest rate</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 3.63%</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> LTIP per-share grant-date fair value</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> $18.54</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> TSOP per-share grant-date fair value</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> $14.91</td></tr></table> </div> 5600000 5600000 4100000 0 0 0 -65000000 136000000 983965 851893 30000000 6000000 37000000 11000000 1041000000 352000000 1086000000 377000000 five 351755 3023 286709 0 -1000000 1000000 2000000 <div> <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="696" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> Nine Months Ended September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Pension Benefits</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Other Benefits</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> ($ in millions)</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in; height: 0.1in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Service cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 20 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 20 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 11 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 12 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Interest cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 72 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 76 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 46 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 43 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Expected return on plan assets</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (107)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (116)</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (11)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (11)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of prior service cost (benefit)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 2 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 2 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in;" valign="top" width="67"> (1)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of net losses</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 36 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 39 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 26 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">    Net cost</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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 23 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 1 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 85 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 69 </td></tr></table> </div> <div> <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="696" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> Three Months Ended September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Pension Benefits</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Other Benefits</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> ($ in millions)</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in; height: 0.1in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Service cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 7 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 7 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 3 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 4 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Interest cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 24 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 26 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 16 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 15 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Expected return on plan assets</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (36)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (39)</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (4)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (4)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of prior service cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 1 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of net losses</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 12 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 6 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 15 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 8 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">    Net cost</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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 8 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67">  30 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 23 </td></tr></table> </div> <div> <table class="MsoNormalTable" style="font-size: 10pt; margin-left: 6.75pt; margin-right: 6.75pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" valign="top" width="108" colspan="3"> September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 76.5pt; padding-top: 0in;" valign="top" width="102" colspan="2"> December 31,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" width="108" colspan="3"> 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 76.5pt; padding-top: 0in;" width="102" colspan="2"> 2009 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.5pt; padding-top: 0in;" valign="top" width="210" colspan="5"> ($ in millions)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391"> Short-term investments with average remaining maturities:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">    Available-for-sale:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Certificates of deposit, 7 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22"> $  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 75 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2"> $  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 10 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Federal government notes, 3 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 30 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 60 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Corporate bond, 5 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 25 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 20 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Commercial paper, 8 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> 25 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">                Total available-for-sale</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="78"> 155 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="78"> 90 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">    Held-to-maturity:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Corporate bonds, 6 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 43 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Federal government bond, 12 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> 31 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">                Total held-to-maturity</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> 74 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">                       Total short-term investments</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22"> $  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="78"> 229 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2"> $  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="78"> 90 </td></tr> <tr><td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="391"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="22"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="78"> </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="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="78"> </td></tr></table> </div> 1000000000 25000000 175000000 25000000 34000000 19000000 60000000 9000000 0.0289 0 0.32 0.29 0.32 18.54 14.91 49.43 49.56 47.54 34.10 34.10 9000000 7000000 19000000 3000000 47.76 <div> <div> <div> <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.  On July 27, 2010, NS' Board of Directors authorized the repurchase of up to an additional 50 million shares of Common Stock through December 31, 2014.  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.  NS repurchased and retired 7.8 million shares in the first nine months of 2010, at a cost of $437 million.  There were no shares repurchased under this program in the first nine months of 2009.  Since inception of this program, NS has repurchased and retired 72.5 million shares of Common Stock at a total cost of $3.7 billion.</div></div></div></div></div> </div> 75000000 50000000 -2000000 -1000000 757000000 313000000 1143000000 461000000

974000000

1131000000

766000000

908000000

32000000

34000000

12000000

-853000000

-804000000

1809000000

1890000000

27369000000

28062000000

2246000000

2633000000

90000000

155000000

20000000

10000000

60000000

25000000

75000000

25000000

30000000

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155000000

618000000

999000000

996000000

1129000000

381000000

133000000

996000000

1129000000

<div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <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 of 2010, 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 liability related to casualty claims by $2 million and $7 million for the third quarter of 2010 and 2009, respectively, and by $19 million and $34 million for the first nine months of 2010 and 2009, respectively.  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 $34 million at September 30, 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 September 30, 2010, the liability represents NS' estimate of the probable cleanup and remediation costs based on available information at 149 known locations.  As of that date, 12 sites accounted for $18 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 33 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.   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 environmental 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  At September 30, 2010, NS had outstanding purchase commitments of approximately $762 million primarily for railroad equipment, including locomotives, RoadRailer® units, covered hoppers, and box cars in connection with its capital programs through 2014, long-term service contracts through 2019, as well as track material. </div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div> </div>

1.02

0.34

1.04

0.36

1350000000

369019990

363372120

370000000

364000000

<div> <div> <div> 9.  Comprehensive Income   <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="643" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.5pt; padding-top: 0in;" valign="top" width="210" colspan="6">     Three Months Ended</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153pt; padding-top: 0in;" valign="top" width="204" colspan="4">            Nine Months Ended</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.5pt; padding-top: 0in;" valign="top" width="210" colspan="6">      September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153pt; padding-top: 0in;" valign="top" width="204" colspan="4">              September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 76.5pt; padding-top: 0in;" valign="top" width="102" colspan="3">         2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" valign="top" width="108" colspan="3">   2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2">             2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" valign="top" width="108" colspan="2">           2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 310.5pt; padding-top: 0in;" valign="top" width="414" colspan="10">        ($ in millions)</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in; height: 0.1in;" valign="top" width="229">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="54">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="42" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="54">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in; height: 0.1in;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in; height: 0.1in;" valign="top" width="54">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.5in; padding-top: 0in; height: 0.1in;" valign="top" width="48">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 45pt; padding-top: 0in; height: 0.1in;" valign="top" width="60">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229"> Net income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in;" valign="top" width="54"> 445</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" colspan="2"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in;" valign="top" width="54"> 303</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"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 40.5pt; padding-top: 0in;" valign="top" width="54"> 1,094</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: 45pt; padding-top: 0in;" valign="top" width="60"> 727</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229"> Other comprehensive income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 40.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="54"> 16</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" colspan="2">  </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: 40.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="54"> 10</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">  </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: 40.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="54"> 49</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="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 45pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="60"> 30</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 171.9pt; padding-top: 0in;" valign="top" width="229">    Total comprehensive income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</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: 40.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="54"> 461</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" colspan="2"> $</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: 40.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="54"> 313</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"> $</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: 40.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="54"> 1,143</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="border-right: medium none; padding-right: 5.4pt; border-top: medium none; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 45pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="60"> 757</td></tr> <tr><td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="229"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="54"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="18"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="54"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="42"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="54"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="48"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="60"> </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 (benefits) for the pension and other postretirement benefit plans.</div></div> </div>

624000000

210000000

612000000

204000000

8048000000

8427000000

0.06

173000000

172000000

142000000

153000000

6747000000

6960000000

26000000

19000000

8000000

6000000

39000000

36000000

15000000

12000000

-1000000

2000000

1000000

11000000

116000000

4000000

39000000

11000000

107000000

4000000

36000000

43000000

76000000

15000000

26000000

46000000

72000000

16000000

24000000

69000000

1000000

23000000

85000000

23000000

30000000

8000000

12000000

20000000

4000000

7000000

11000000

20000000

3000000

7000000

630000000

617000000

<div> <div> <div> <div> <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 $9 million during the third quarter of 2010 and $19 million during the same period of 2009.  For the first nine months of 2010 and 2009, stock-based compensation expense was $60 million and $34 million, respectively.  The total tax effect recognized in income in relation to stock-based compensation were benefits of $3 million and $7 million for the quarters ended September 30, 2010 and 2009, respectively, and benefits of $19 million and $9 million for the first nine months of 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: 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: 203.4pt; padding-top: 0in;" valign="top" width="271">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144">                    2010</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in; height: 0.1in;" valign="top" width="271">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in; height: 0.1in;" valign="top" width="144">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Expected volatility range</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 29% - 32%</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Average expected volatility</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 32%</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Average expected option life</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 8.3 years</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> Average risk-free interest rate</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> 3.63%</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> LTIP per-share grant-date fair value</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> $18.54</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 203.4pt; padding-top: 0in;" valign="top" width="271"> TSOP per-share grant-date fair value</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1.5in; padding-top: 0in;" valign="top" width="144"> $14.91</td></tr></table>   During the third quarter of 2010, options relating to 497,375 shares were exercised, yielding $11 million in cash proceeds and $6 million of tax benefits recognized as additional paid-in capital.  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.   For the first nine months of 2010, options relating to 1,655,271 shares were exercised, yielding $37 million of cash proceeds and $20 million of tax benefits recognized as additional paid-in capital.  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.   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 third quarter of 2010, there were no restricted stock units or restricted shares earned and paid out.  For 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.  Also earned and distributed were 4,535 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 less than $1 million during the third quarter of 2009.   During the first nine months 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 for the first nine months of 2010.   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.  Also earned and distributed were 368,158 restricted shares with a weighted-average grant-date fair value of $47.54.  The total related tax expense recognized as a reduction to additional paid-in capital was $1 million for the first nine months 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 of Common Stock; 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 nine months 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 a reduction to additional paid-in capital was less than $1 million for the first nine months of 2010.   For 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.  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 expense recognized as a reduction to additional paid-in capital was $2 million for the first nine months of 2009.</div></div></div></div></div> </div>

133000000

1.97

0.82

2.95

1.21

1.94

0.81

2.91

1.19

<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: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Three Months Ended</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153.9pt; padding-top: 0in;" valign="top" width="205" colspan="4"> Nine Months Ended</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153.9pt; padding-top: 0in;" valign="top" width="205" colspan="4"> September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81.9pt; padding-top: 0in;" valign="top" width="109" colspan="2"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 297.9pt; padding-top: 0in;" valign="top" width="397" colspan="8"> (in millions except per share amounts)</td></tr> <tr style="height: 6.5pt;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in; height: 6.5pt;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 6.5pt;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 6.5pt;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 6.5pt;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.3pt; padding-top: 0in; height: 6.5pt;" valign="top" width="80">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> Basic earnings per share:</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: 0.7in; padding-top: 0in;" valign="top" width="67">  </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: 0.7in; padding-top: 0in;" valign="top" width="67">  </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: 0.7in; padding-top: 0in;" valign="top" width="67">  </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: 60.3pt; padding-top: 0in;" valign="top" width="80">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    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: 0.7in; padding-top: 0in;" valign="top" width="67"> 445 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 303 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 1,094 </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: 60.3pt; padding-top: 0in;" valign="top" width="80"> 727 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    Less:  Dividend equivalent payments</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> (2)</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> (2)</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> (6)</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: 60.3pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="80"> (6)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    Income available to common stockholders</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: 0.7in; padding-top: 0in; border-bottom: medium none;" valign="top" width="67"> 443 </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: 0.7in; padding-top: 0in; border-bottom: medium none;" valign="top" width="67"> 301 </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: 0.7in; padding-top: 0in; border-bottom: medium none;" valign="top" width="67"> 1,088 </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: 60.3pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="80"> 721 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    Weighted-average shares outstanding</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 366.3 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 367.3 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 368.5 </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: 60.3pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="80"> 366.8 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">         Basic earnings per share</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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 1.21 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 0.82 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 2.95 </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: 60.3pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="80"> 1.97 </td></tr></table>   As required under the provisions of ASC 260-10, "Earnings Per Share," income available to common stockholders reflects reductions from net income for the effect of dividend equivalent payments made to holders of stock options.   <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="685" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 166.5pt; padding-top: 0in;" valign="top" width="222" colspan="6"> Three Months Ended</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 130.5pt; padding-top: 0in;" valign="top" width="174" colspan="4"> Nine Months Ended</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 166.5pt; padding-top: 0in;" valign="top" width="222" colspan="6"> September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 130.5pt; padding-top: 0in;" valign="top" width="174" colspan="4"> September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 94.5pt; padding-top: 0in;" valign="top" width="126" colspan="4"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="3"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 297pt; padding-top: 0in;" valign="top" width="396" colspan="10"> (in millions except per share amounts)</td></tr> <tr style="height: 6.5pt;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in; height: 6.5pt;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="66">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in; height: 6.5pt;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in; height: 6.5pt;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="66">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in; height: 6.5pt;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 63pt; padding-top: 0in; height: 6.5pt;" valign="top" width="84" colspan="2">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289"> Diluted earnings per share:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Net income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 445 </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: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 303 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 1,094 </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: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2"> 727 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Less:  Dividend equivalent payments</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> (2)</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: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72" colspan="2"> (2)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> (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: 63pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="84" colspan="2"> (6)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Income available to common stockholders</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> 443 </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: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72" colspan="2"> 301 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> 1,088 </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: 63pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="84" colspan="2"> 721 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Weighted-average shares outstanding</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="66"> 366.3 </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: 0.75in; padding-top: 0in; border-bottom: medium none;" valign="top" width="72" colspan="2"> 367.3 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="66"> 368.5 </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: 63pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="84" colspan="2"> 366.8 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Dilutive effect of outstanding options and</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">      share-settled awards</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 5.3 </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: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 5.2 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 5.3 </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: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2"> 4.9 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Adjusted weighted-average shares      outstanding</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="66"> 371.6 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="bottom" width="24">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="72" colspan="2"> 372.5 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="bottom" width="30">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="66"> 373.8 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="bottom" width="24">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 63pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="84" colspan="2"> 371.7 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">         Diluted earnings per share</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</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: 49.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="66"> 1.19 </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: 0.75in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="72" colspan="2"> 0.81 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</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: 49.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="66"> 2.91 </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: 63pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="84" colspan="2"> 1.94 </td></tr> <tr><td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="289"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="6"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="6"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="78"> </td></tr></table>   As required under the provisions of ASC 260-10, "Earnings Per Share," diluted earnings per share for the three and nine months ended September 30, 2010 and 2009, were calculated under the more dilutive two-class method (as compared to the treasury stock method) and accordingly, income available to common stockholders for all periods reflect reductions 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 for each quarter in 2010, but in 2009, 4.1 million for the third quarter, and 5.6 million for both the second and first quarters. </div>

6000000

2000000

6000000

2000000

0.58

0.5

<div> <div> <div> <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:  <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';">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';">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';">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';">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>   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 September 30, 2010, and December 31, 2009, for assets measured at fair value on a recurring basis, there were $155 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:   <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></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: 157.6pt; padding-top: 0in;" valign="top" width="210" colspan="5"> September 30, 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 162.8pt; padding-top: 0in;" valign="top" width="217" colspan="6"> 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: 84pt; padding-top: 0in;" valign="top" width="112" colspan="3"> 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: 84pt; padding-top: 0in;" valign="top" width="112" colspan="3"> 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: 4.45in; padding-top: 0in;" valign="top" width="427" colspan="11"> ($ 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: 49.5pt; padding-top: 0in;" valign="top" width="66">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" 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: 45.9pt; padding-top: 0in;" valign="top" width="61" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66">  </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: 49.5pt; padding-top: 0in;" valign="top" width="66"> 286 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" 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">  320 </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: 45.9pt; padding-top: 0in;" valign="top" width="61" colspan="2"> 237 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 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: 49.5pt; padding-top: 0in;" valign="top" width="66"> (6,935)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42" 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"> (8,427)</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: 45.9pt; padding-top: 0in;" valign="top" width="61" colspan="2"> (7,053)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 31.5pt; padding-top: 0in;" valign="top" width="42"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66">  (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="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="2"> </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="57"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="4"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="42"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td></tr></table>   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.   Carrying amounts of available-for-sale securities reflect immaterial unrealized holding losses on September 30, 2010, and December 31, 2009.  Sales of "available-for-sale" securities were $160 million and immaterial for the nine months ended September 30, 2010 and 2009, respectively.</div></div></div></div></div></div> </div> </div>

504000000

192000000

771000000

259000000

-13000000

-38000000

31000000

43000000

74000000

<div> <div> <div> <div> <div> <div> <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 the Financial Accounting Standards Board Accounting Standards Codification (ASC) 740, "Income Taxes," NS recorded a $27 million charge to deferred tax expense.   During the third quarter of 2010, NS submitted claims to the IRS seeking refunds of federal income taxes for the years 2005-2008, and expects to file a similar claim for 2009, the effects of which increased unrecognized tax benefits by approximately $30 million.</div></div></div></div></div></div> </div>

234000000

498000000

428000000

178000000

711000000

269000000

-26000000

-142000000

111000000

50000000

-184000000

254000000

348000000

118000000

347000000

113000000

288000000

296000000

<div> <div> <div> <div> <div> 6.  Investments   Short-Term Investments <table class="MsoNormalTable" style="font-size: 10pt; margin-left: 6.75pt; margin-right: 6.75pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" valign="top" width="108" colspan="3"> September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 76.5pt; padding-top: 0in;" valign="top" width="102" colspan="2"> December 31,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81pt; padding-top: 0in;" width="108" colspan="3"> 2010 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 76.5pt; padding-top: 0in;" width="102" colspan="2"> 2009 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 157.5pt; padding-top: 0in;" valign="top" width="210" colspan="5"> ($ in millions)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391"> Short-term investments with average remaining maturities:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">    Available-for-sale:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Certificates of deposit, 7 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22"> $  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 75 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2"> $  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 10 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Federal government notes, 3 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 30 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 60 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Corporate bond, 5 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 25 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 20 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Commercial paper, 8 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> 25 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">                Total available-for-sale</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="78"> 155 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="78"> 90 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">    Held-to-maturity:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Corporate bonds, 6 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 43 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">         Federal government bond, 12 months</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> 31 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">                Total held-to-maturity</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> 74 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2">  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="78"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 293.4pt; padding-top: 0in;" valign="top" width="391">                       Total short-term investments</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 16.3pt; padding-top: 0in;" valign="top" width="22"> $  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="78"> 229 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 24.2pt; padding-top: 0in;" valign="top" width="32" colspan="2"> $  </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: 58.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="78"> 90 </td></tr> <tr><td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="391"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="22"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="78"> </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="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="78"> </td></tr></table>   Investment in Conrail, Inc.   Through a limited liability company, Norfolk Southern and CSX Corporation (CSX) jointly own Conrail Inc. (Conrail), whose primary subsidiary is Consolidated Rail Corporation (CRC).  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.  NS' investment in Conrail was $940 million at September 30, 2010, and $924 million at December 31, 2009.   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).  The costs of operating the Shared Assets Areas are borne by NSR and CSXT based on usage.  In addition, NSR and CSXT pay CRC a fee for access to the Shared Assets Areas.  "Purchased services and rents" and "Fuel" include expenses for the use of the Shared Assets Areas totaling $30 million and $32 million in the third quarters of 2010 and 2009, respectively, and $88 million and $92 million for the first nine months of 2010 and 2009, respectively.  NS' equity in earnings of Conrail, net of amortization, included in "Other income net" was $3 million and $7 million in the third quarters of 2010 and 2009, respectively, and $16 million and $24 million for the first nine months of 2010 and 2009, respectively.   "Accounts payable" includes $128 million at September 30, 2010, and $104 million at December 31, 2009, due to Conrail for the operation of the Shared Assets Areas.  In addition, "Other liabilities" includes $133 million at both September 30, 2010, and December 31, 2009, for long-term advances from Conrail, maturing 2035, that bear interest at an average rate of 4.4%.   Investment in Pan Am Southern LLC   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.  As of September 30, 2010, NS had contributed cash and other property with a combined value of approximately $109 million and has committed to contribute an additional $31 million in cash over the next two years.  A significant portion of NS' contributions has and will continue to be used for capital improvements to the PAS lines and the related construction of new intermodal and automotive terminals.</div></div></div></div> </div>

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<div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <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   <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="696" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> Three Months Ended September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Pension Benefits</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Other Benefits</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> ($ in millions)</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in; height: 0.1in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Service cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 7 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 7 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 3 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 4 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Interest cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 24 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 26 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 16 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 15 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Expected return on plan assets</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (36)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (39)</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (4)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (4)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of prior service cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 1 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of net losses</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 12 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 6 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 15 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 8 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">    Net cost</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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 8 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67">  30 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 23 </td></tr></table>     <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="696" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> Nine Months Ended September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Pension Benefits</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Other Benefits</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 4in; padding-top: 0in;" valign="top" width="384" colspan="8"> ($ in millions)</td></tr> <tr style="height: 0.1in;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in; height: 0.1in;" valign="top" width="312">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 0.1in;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 0.1in;" valign="top" width="67">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Service cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 20 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 20 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 11 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 12 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Interest cost</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 72 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 76 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 46 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 43 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Expected return on plan assets</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (107)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (116)</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: 0.7in; padding-top: 0in;" valign="top" width="67">  (11)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> (11)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of prior service cost (benefit)</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: 0.7in; padding-top: 0in;" valign="top" width="67"> 2 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 2 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> -- </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: 0.7in; padding-top: 0in;" valign="top" width="67"> (1)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312"> Amortization of net losses</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 36 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 39 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 26 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3.25in; padding-top: 0in;" valign="top" width="312">    Net cost</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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 23 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 1 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 85 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 69 </td></tr></table></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div> </div>

990000000

250000000

160000000

61000000

81000000

32000000

59000000

727000000

303000000

1094000000

445000000

22643000000

22893000000

675000000

477000000

100000000

9027000000

9339000000

5863000000

2063000000

7124000000

2456000000

<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> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> Three Months Ended</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153.9pt; padding-top: 0in;" valign="top" width="205" colspan="4"> Nine Months Ended</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 2in; padding-top: 0in;" valign="top" width="192" colspan="4"> September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 153.9pt; padding-top: 0in;" valign="top" width="205" colspan="4"> September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 81.9pt; padding-top: 0in;" valign="top" width="109" colspan="2"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 297.9pt; padding-top: 0in;" valign="top" width="397" colspan="8"> (in millions except per share amounts)</td></tr> <tr style="height: 6.5pt;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in; height: 6.5pt;" valign="top" width="288">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 6.5pt;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 6.5pt;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.7in; padding-top: 0in; height: 6.5pt;" valign="top" width="67">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.3in; padding-top: 0in; height: 6.5pt;" valign="top" width="29">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 60.3pt; padding-top: 0in; height: 6.5pt;" valign="top" width="80">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288"> Basic earnings per share:</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: 0.7in; padding-top: 0in;" valign="top" width="67">  </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: 0.7in; padding-top: 0in;" valign="top" width="67">  </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: 0.7in; padding-top: 0in;" valign="top" width="67">  </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: 60.3pt; padding-top: 0in;" valign="top" width="80">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    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: 0.7in; padding-top: 0in;" valign="top" width="67"> 445 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 303 </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: 0.7in; padding-top: 0in;" valign="top" width="67"> 1,094 </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: 60.3pt; padding-top: 0in;" valign="top" width="80"> 727 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    Less:  Dividend equivalent payments</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> (2)</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> (2)</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> (6)</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: 60.3pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="80"> (6)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    Income available to common stockholders</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: 0.7in; padding-top: 0in; border-bottom: medium none;" valign="top" width="67"> 443 </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: 0.7in; padding-top: 0in; border-bottom: medium none;" valign="top" width="67"> 301 </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: 0.7in; padding-top: 0in; border-bottom: medium none;" valign="top" width="67"> 1,088 </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: 60.3pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="80"> 721 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">    Weighted-average shares outstanding</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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 366.3 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 367.3 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="67"> 368.5 </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: 60.3pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="80"> 366.8 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 3in; padding-top: 0in;" valign="top" width="288">         Basic earnings per share</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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 1.21 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 0.82 </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: 0.7in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="67"> 2.95 </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: 60.3pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="80"> 1.97 </td></tr></table> </div>

<div> <table class="MsoNormalTable" style="font-size: 10pt; font-family: 'Times New Roman','serif'; border-collapse: collapse;" cellspacing="0" cellpadding="0" width="685" border="0"> <tr><td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 166.5pt; padding-top: 0in;" valign="top" width="222" colspan="6"> Three Months Ended</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 130.5pt; padding-top: 0in;" valign="top" width="174" colspan="4"> Nine Months Ended</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 166.5pt; padding-top: 0in;" valign="top" width="222" colspan="6"> September 30,</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 130.5pt; padding-top: 0in;" valign="top" width="174" colspan="4"> September 30,</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 94.5pt; padding-top: 0in;" valign="top" width="126" colspan="4"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="2"> 2009</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 1in; padding-top: 0in;" valign="top" width="96" colspan="3"> 2010</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 58.5pt; padding-top: 0in;" valign="top" width="78"> 2009</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 297pt; padding-top: 0in;" valign="top" width="396" colspan="10"> (in millions except per share amounts)</td></tr> <tr style="height: 6.5pt;"><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in; height: 6.5pt;" valign="top" width="289">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="66">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in; height: 6.5pt;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in; height: 6.5pt;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in; height: 6.5pt;" valign="top" width="66">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in; height: 6.5pt;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 63pt; padding-top: 0in; height: 6.5pt;" valign="top" width="84" colspan="2">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289"> Diluted earnings per share:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Net income</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 445 </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: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 303 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 1,094 </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: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2"> 727 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Less:  Dividend equivalent payments</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> (2)</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: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72" colspan="2"> (2)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> (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: 63pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="84" colspan="2"> (6)</td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Income available to common stockholders</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> 443 </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: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="72" colspan="2"> 301 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="66"> 1,088 </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: 63pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="top" width="84" colspan="2"> 721 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Weighted-average shares outstanding</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="66"> 366.3 </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: 0.75in; padding-top: 0in; border-bottom: medium none;" valign="top" width="72" colspan="2"> 367.3 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </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: 49.5pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="66"> 368.5 </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: 63pt; padding-top: 0in; border-bottom: medium none;" valign="top" width="84" colspan="2"> 366.8 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Dilutive effect of outstanding options and</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <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: 0.25in; padding-top: 0in;" valign="top" width="24">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2">  </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">      share-settled awards</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 5.3 </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: 0.75in; padding-top: 0in;" valign="top" width="72" colspan="2"> 5.2 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 49.5pt; padding-top: 0in;" valign="top" width="66"> 5.3 </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: 63pt; padding-top: 0in;" valign="top" width="84" colspan="2"> 4.9 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">    Adjusted weighted-average shares      outstanding</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="66"> 371.6 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="bottom" width="24">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 0.75in; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="72" colspan="2"> 372.5 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="bottom" width="30">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 49.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="66"> 373.8 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 0.25in; padding-top: 0in;" valign="bottom" width="24">  </td> <td style="border-right: medium none; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0in; border-left: medium none; width: 63pt; padding-top: 0in; border-bottom: windowtext 1pt solid;" valign="bottom" width="84" colspan="2"> 371.7 </td></tr> <tr><td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 216.9pt; padding-top: 0in;" valign="top" width="289">         Diluted earnings per share</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</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: 49.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="66"> 1.19 </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: 0.75in; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="72" colspan="2"> 0.81 </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 0in; width: 22.5pt; padding-top: 0in;" valign="top" width="30"> $</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: 49.5pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="66"> 2.91 </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: 63pt; padding-top: 0in; border-bottom: windowtext 3px double;" valign="top" width="84" colspan="2"> 1.94 </td></tr> <tr><td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="289"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="6"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="30"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="66"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="24"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="6"> </td> <td style="border-right: medium none; border-top: medium none; border-left: medium none; border-bottom: medium none;" width="78"> </td></tr></table> </div>

ten

fourth

third

824900

168250

36.32

41.32

48.88

8.3

0.0363

824900

259800

100000000

0.0222

0.0196

90000000

229000000

10353000000

10789000000

368158

4535

433236

1082657

241754

1655271

497375

72500000

7800000

3700000000

437000000

237000000

286000000

260000000

320000000

6000000

3000000

20000000

6000000

109000000

116000000

20443337

20361354

19000000

30000000

4900000

5200000

5300000

371700000

372500000

373800000

371600000

366800000

367300000

368500000

366300000