Summary
Norfolk Southern Corporation (NSC) filed an 8-K on October 26, 2005, primarily to disclose its third-quarter 2005 financial results via an attached press release. The filing highlights the use of non-GAAP financial measures to provide a clearer comparison of operational performance by excluding specific, non-recurring items. These excluded items include the impact of the Conrail corporate reorganization from the prior year's third quarter and first nine months, and the effects of newly enacted Ohio tax legislation impacting the first nine months of 2005.
Key Highlights
- 1NSC announced its third-quarter 2005 financial results via a press release filed with the SEC.
- 2The company utilized non-GAAP financial measures in its reporting to facilitate year-over-year comparisons.
- 3These non-GAAP measures exclude the impact of the Conrail corporate reorganization from Q3 2004 and the first nine months of 2004.
- 4The company also excluded the effects of Ohio tax legislation enacted in Q2 2005 from the first nine months of 2005 results for comparative purposes.
- 5Management believes these adjusted measures offer better insights into ongoing operating results compared to GAAP figures.
- 6The non-GAAP measures are intended for use in comparisons with prior periods and other companies, and will be discussed at the analyst meeting scheduled for October 26, 2005.
- 7The filing includes an Exhibit 99, which is the press release detailing the financial results and the reconciliation of non-GAAP measures.
Frequently Asked Questions
The main purpose of this 8-K filing is to publicly disclose Norfolk Southern Corporation's third-quarter 2005 financial results through an attached press release. It also informs investors about the non-GAAP financial measures the company is using for reporting.
Norfolk Southern is using non-GAAP financial measures to provide investors with a clearer view of its operational performance by excluding the effects of significant, non-recurring events. This allows for a more meaningful comparison of current results to prior periods and to other companies in the industry.
The non-GAAP measures exclude the financial impact of the Conrail corporate reorganization that occurred in the third quarter of 2004. Additionally, they exclude the effects of Ohio tax legislation enacted in the second quarter of 2005, specifically when comparing the first nine months of 2005 to 2004.
No, these non-GAAP financial measures are presented as supplemental information and should be considered in addition to, not as a substitute for, net income and diluted earnings per share reported in accordance with U.S. Generally Accepted Accounting Principles (GAAP).