Norfolk Southern Corp., balance sheet: debt

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Short-term debt	—)	—)	—)	—)	100)
Current maturities of long-term debt	553)	579)	316)	585)	600)
Long-term debt, excluding current maturities	13,287)	12,102)	11,880)	10,560)	9,136)
Total debt (carrying amount)	13,840)	12,681)	12,196)	11,145)	9,836)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Norfolk Southern Corp. total debt increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021
Selected Financial Data (US$ in millions)
Short-term debt	—)
Long-term debt, including current maturities	17,033)
Total debt (fair value)	17,033)
Financial Ratio
Debt, fair value to carrying amount ratio	1.23

Weighted average interest rate on debt: 4.06%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.40%	2,699)	92)
4.26%	2,614)	111)
4.02%	8,097)	325)
5.22%	1,384)	72)
Total	14,794)	601)
4.06%

¹ US$ in millions

² Weighted-average interest rate = 100 × 601 ÷ 14,794 = 4.06%

Norfolk Southern Corp., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Interest expense on debt	646)	625)	604)	557)	550)
Interest capitalized	11)	14)	16)	17)	20)
Interest cost incurred on debt	657)	639)	620)	574)	570)

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Debt item	Description	The company
Interest expense on debt	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Norfolk Southern Corp. interest expense on debt increased from 2019 to 2020 and from 2020 to 2021.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Norfolk Southern Corp. interest capitalized decreased from 2019 to 2020 and from 2020 to 2021.
Interest cost incurred on debt	Total interest costs incurred during the period and either capitalized or charged against earnings.	Norfolk Southern Corp. interest cost incurred on debt increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income	3,005)	2,013)	2,722)	2,666)	5,404)
Add: Income tax expense	873)	517)	769)	803)	(2,276)
Add: Interest expense on debt	646)	625)	604)	557)	550)
Earnings before interest and tax (EBIT)	4,524)	3,155)	4,095)	4,026)	3,678)

Interest cost incurred on debt	657)	639)	620)	574)	570)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	7.00	5.05	6.78	7.23	6.69
Adjusted interest coverage ratio (with capitalized interest)²	6.89	4.94	6.60	7.01	6.45

2021 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense on debt
= 4,524 ÷ 646 = 7.00

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest cost incurred on debt
= 4,524 ÷ 657 = 6.89

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Norfolk Southern Corp. adjusted interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Norfolk Southern Corp. (NYSE:NSC)

Analysis of Debt