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.