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Actionable news in NSC: NORFOLK SOUTHERN Corp,

Norfolk Souther: 1Q 2016 Financial Statements Exhibit

The following excerpt is from the company's SEC filing.

Norfolk Southern Corporation and Subsidiaries

Consolidated Statements of Income


First Quarter

($ in millions, except per share amounts)

Railway operating revenues



Total railway operating revenues

Railway operating expenses

Compensation and benefits

Purchased services and rents


Materials and other

Total railway operating expenses

Income from railway operations

Other income – net

Interest expense on debt

Income before income taxes

Provi sion for income taxes



Total income taxes

Net income

Earnings per share


Weighted average shares outstanding

(note 1)

See accompanying notes to consolidated financial statements.

Consolidated Statements of Comprehensive Income

($ in millions)

Other comprehensive income, before tax:

Pension and other postretirement benefits

Other comprehensive loss of equity investees

Income tax expense related to items of other

Other comprehensive income, net of tax

Total comprehensive income

Consolidated Balance Sheets

March 31,

December 31,


Current assets:

Cash and cash equivalents

Accounts receivable – net

Materials and supplies

Other current assets

Total current assets (note 2)


Properties less accumulated depreciation of $11,520

$11,478, respectively



Other assets

Total assets



Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

Short-term debt

Income and other taxes

Other current liabilities

Current maturities of long-term debt

Total current liabilities

Long-term debt

Other liabilities

Deferred income taxes (note 2)

Total liabilities



Stockholders’ equity:

Common stock $1.00 per share par value, 1,350,000,000 shares

authorized; outstanding 295,737,821 and 297,795,016 shares,

respectively, net of treasury shares

Additional paid-in capital

Accumulated other comprehensive loss

Retained income



Total stockholders’ equity



Total liabilities and stockholders’ equity

Consolidated Statements of Cash Flows

Cash flows from operating activities

Reconciliation of net income to net cash provided by operating activities:

Gains and losses on properties

Changes in assets and liabilities affecting operations:

Current liabilities other than debt (note 3)

Other – net

Net cash provided by operating activities

Cash flows from investing activities

Property additions

Property sales and other transactions

Investment purchases

Investment sales and other transactions

Net cash used in investing activities

Cash flows from financing activities


Common stock transactions (note 3)

Purchase and retirement of common stock (note 1)

Debt repayments

Net cash used in financing activities

Net decrease in cash and cash equivalents

At beginning of year

At end of period

Supplemental disclosures of cash flow information

Cash paid during the period for:

Interest (net of amounts capitalized)

Income taxes (net of refunds)


1. Stock Repurchase Program

We repurchased 2.6 million and 3.9 million shares of common stock in the first quarters of 2016 and 2015, respectively, at a cost of $200 million and $415 million, respectively. We have remaining authorization from our Board of Directors to repurchase up to 21.3 million shares through December 31, 2017. The timing and volume of purchases is guided by our assessment of market conditions and other pertinent factors. Any near-term share repurchases are expected to be made with internally generated cash, cash on hand, or proceeds from borrowings. Since the beginning of 2006, we have repurchased and retired 153.7 million shares at a total cost of $9.7 billion.

2. New Accounting Pronouncement

In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17,

"Balance Sheet Classification of Deferred Taxes

." This update requires that deferred tax liabilities and assets be classified as noncurrent on the balance sheet rather than as separate current and noncurrent amounts. We adopted the provisions of this ASU during the first quarter of 2016 and applied it retrospectively. The adoption of ASU 2015-17 resulted in the presentation of $86 million of current deferred income tax assets as a reduction of "Deferred income taxes" in the long-term liabilities section of the Consolidated Balance Sheet at March 31, 2016. We retrospectively presented the December 31, 2015 Consolidated Balance Sheet and related disclosures to reflect the reclassification of $121 million of deferred income tax assets from "Deferred income taxes" in the current assets section of the balance sheet to "Deferred income taxes" in the long-term liabilities section of the balance sheet. There was no other impact on our consolidated financial statements or related disclosures from the adoption of ASU 2015-17.

3. Stock-Based Compensation

In March 2016, the FASB issued ASU No. 2016-09, "

Improvements to Employee Share-Based Payment Accounting.

" We adopted the provisions of this ASU during the first quarter of 2016. This update principally affects the recognition of excess tax benefits and deficiencies and the cash flow classification of share-based compensation-related transactions. The classification requirements on the Consolidated Statements of Cash Flows for the adoption of ASU 2016-09 resulted in a $21 million increase in "Current liabilities other than debt" within the operating activities section and a corresponding decrease in "Common stock transactions" within the financing activities section for the first quarter of 2016. We retrospectively presented the Consolidated Statements of Cash Flows for the first quarter of 2015 to reflect a $26 million increase in "Current liabilities other than debt" within the operating activities section and a corresponding decrease in "Common stock transactions" within the financing activities section. ASU 2016-09 did not have a material effect on our consolidated financial statements or related disclosures.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Norfolk Souther: Restructuring The Company’S Triple Crown Services Subsidiary;
To Our Fellow Norfolk Southern Shareholders - April 12, 2016
Additional definitive proxy soliciting materials and Rule 14(a)(12) material - April 12, 2016
Prospectuses and communications, business combinations - April 11, 2016