Summary
Norfolk Southern Corporation (NSC) announced on March 28, 2008, that its Board of Directors approved an increase of $64.0 million to its 2008 capital expenditure budget. This additional funding is specifically designated for the accelerated purchase of approximately 750 new coal cars. The company is undertaking a multi-year initiative to replace its existing coal car fleet. The accelerated acquisition and placement of these cars into service before the end of 2008 are expected to make NSC eligible for a bonus depreciation deduction under the Economic Stimulus Act of 2008.
Key Highlights
- 1Increased 2008 capital expenditure budget by $64.0 million.
- 2Accelerated purchase of approximately 750 new coal cars.
- 3The purchases are part of a multi-year program to replace the existing coal car fleet.
- 4New coal cars are expected to be placed in service by December 31, 2008.
- 5The accelerated acquisition is intended to qualify for a bonus depreciation deduction.
- 6Eligibility for the bonus depreciation deduction is based on the Economic Stimulus Act of 2008.
Frequently Asked Questions
Norfolk Southern is increasing its 2008 capital expenditures by $64.0 million to accelerate the purchase of approximately 750 new coal cars. This is part of a strategic initiative to refresh its coal car fleet.
The main anticipated benefit is eligibility for a bonus depreciation deduction for tax purposes, as provided under the Economic Stimulus Act of 2008, by placing the new coal cars into service before December 31, 2008.
The company is accelerating the purchase of approximately 750 new coal cars, and they are expected to be placed in service before the end of 2008.
This accelerated purchase is part of Norfolk Southern's ongoing, multi-year program to replace its existing coal car fleet. The acceleration is driven by the tax incentives available in 2008.