- Fourth quarter earnings per diluted share of $2.71, up 1%
- Fourth quarter net income up 1%
- Full year earnings per diluted share of $10.45, down 7%
- Full year net income down 9%
OMAHA,
Neb., Jan. 25, 2024 /PRNewswire/ -- Union
Pacific Corporation (NYSE: UNP) today reported 2023 fourth quarter
net income of $1.7 billion, or
$2.71 per diluted share. This
compares to 2022 fourth quarter net income of $1.6 billion, or $2.67 per diluted share.
Reported net income for full year 2023 was $6.4 billion, or $10.45 per diluted share. These full year results
compare to full year 2022 net income of $7.0
billion, or $11.21 per diluted
share.
"The team continues to execute our multi-year strategy to be the
industry's best in safety, service, and operational excellence,"
said Jim Vena, Union Pacific Chief
Executive Officer. "Our fourth quarter results show much of what's
possible at Union Pacific and that we're on the right path to
reaching our goals. Service and operational metrics showed great
improvement in the quarter. Those improvements propel us toward a
service product that supports growth with our customers. We enter
2024 with strong momentum, recognizing we have plenty of
opportunity to improve. We're excited to show our stakeholders what
our great team can accomplish."
Fourth Quarter Summary: 2023 vs. 2022
Financial Results: Increased Volume and Core Pricing Gains
Offset by Lower Fuel Surcharge Revenue Led to Flat Operating
Revenue
- Operating revenue of $6.2 billion
was flat driven by increased volume and core pricing gains offset
by reduced fuel surcharge revenue and business mix.
- Revenue carloads were up 3%.
- Operating ratio was 60.9%, an improvement of 10 basis
points.
- Operating income of $2.4 billion
was flat.
Operating Performance: Improved Resource Utilization Drives
Strong Service Metrics and Fluid Network; Fourth Quarter Record for
Workforce Productivity
- Quarterly freight car velocity was 217 daily miles per car, a
14% improvement.
- Quarterly locomotive productivity was 140 gross ton-miles
(GTMs) per horsepower day, a 14% improvement.
- Average maximum train length was 9,413 feet, a 2%
increase.
- Quarterly workforce productivity improved 4% to 1,051 car miles
per employee.
- Fuel consumption rate of 1.091, measured in gallons of fuel per
thousand GTMs, deteriorated 3%.
Full Year Summary: 2023 vs. 2022
Financial Results: Lower Fuel Surcharge Revenue and Volume
Drive Reduced Operating Revenue
- Operating revenue of $24.1
billion was down 3% driven by lower fuel surcharge revenue,
business mix, and volume declines partially offset by core pricing
gains.
- Revenue carloads declined 1%.
- Union Pacific's 62.3% reported operating ratio deteriorated 220
basis points. Lower fuel prices positively impacted the operating
ratio by 50 basis points.
- Operating Income of $9.1 billion
was down 8%.
- Union Pacific's 2023 capital program totaled $3.7 billion.
- The company repurchased 3.5 million shares in 2023 at an
aggregate cost of $712 million.
Operating Performance: Improving Resource Availability and
Utilization Through the Year Results in Fluid Operations to End
2023
- Union Pacific's reportable derailment rates improved, while
reportable personal injury rates did not improve.
- Freight car velocity was 204 daily miles per car, a 7%
improvement.
- Locomotive productivity was 129 GTMs per horsepower day, a 3%
increase.
- Average maximum train length of 9,356 feet was flat.
- Workforce productivity of 1,000 car miles per employee declined
3%.
- Fuel consumption rate of 1.088, measured in gallons of fuel per
thousand GTMs, deteriorated 1%.
2024 Outlook
- Volume outlook muted by international intermodal business loss,
lower coal demand, and soft economic conditions
- Pricing dollars in excess of inflation dollars
- No change to long-term capital allocation strategy
- Capital plan of $3.4 billion
- No first quarter share repurchases
Fourth Quarter 2023 Earnings Conference Call
Union Pacific will webcast its fourth quarter 2023 earnings
release presentation live at www.up.com/investor and via
teleconference on Thursday, January 25,
2024, at 8:45 a.m. Eastern
Time. Participants may join the conference call by dialing
877-407-8293 (or for international participants, 201-689-8349).
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and
businesses use every day with safe, reliable, and efficient
service. Operating in 23 western states, the company connects its
customers and communities to the global economy. Trains are the
most environmentally responsible way to move freight, helping Union
Pacific protect future generations. More information about Union
Pacific is available at www.up.com.
Supplemental financial information is
attached.
****
This news release and related materials contain statements
about the Company's future that are not statements of historical
fact, including specifically the statements regarding the potential
impacts of public health crises, including pandemics, epidemics and
the outbreak of other contagious diseases, such as the coronavirus
and its variant strains (COVID); the Russia-Ukraine and Israeli wars and any impacts on
our business operations, financial results, liquidity, and
financial position, and on the world economy (including customers,
employees, and supply chains), including as a result of
fluctuations in volume and carloadings; expectations as to general
macroeconomic conditions, including slowdowns and recessions,
domestically or internationally, and future volatility in interest
rates and fuel prices; closing of customer manufacturing,
distribution, or production facilities; expectations as to
operational or service improvements; expectations as to hiring
challenges; availability of employees; expectations regarding the
effectiveness of steps taken or to be taken to improve operations,
service, infrastructure improvements, and transportation plan
modifications; expectations as to cost savings, revenue growth, and
earnings; the time by which goals, targets, or objectives will be
achieved; projections, predictions, expectations, estimates, or
forecasts as to business, financial, and operational results,
future economic performance, and planned capital investments ;
proposed new products and services; estimates of costs relating to
environmental remediation and restoration; estimates and
expectations regarding tax matters; expectations that claims,
litigation, environmental costs, commitments, contingent
liabilities, labor negotiations or agreements, cyberattacks or
other matters. These statements are, or will be,
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements also generally include,
without limitation, information, or statements regarding:
projections, predictions, expectations, estimates, or forecasts as
to the Company's and its subsidiaries' business, financial, and
operational results, and future economic performance; and
management's beliefs, expectations, goals, and objectives and other
similar expressions concerning matters that are not historical
facts.
Forward-looking statements should not be read as a guarantee
of future performance or results and will not necessarily be
accurate indications of the times that, or by which, such
performance or results will be achieved. Forward-looking
information, including expectations regarding operational and
financial improvements and the Company's future performance or
results are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the statement. Important factors, including risk
factors, could affect the Company's and its subsidiaries' future
results and could cause those results or other outcomes to differ
materially from those expressed or implied in the forward-looking
statements. Information regarding risk factors and other cautionary
information are available in the Company's Annual Report on Form
10-K for 2022, which was filed with the SEC on February 10, 2023. The Company updates
information regarding risk factors if circumstances require such
updates in its periodic reports on Form 10-Q and its subsequent
Annual Reports on Form 10-K (or such other reports that may be
filed with the SEC).
Forward-looking statements speak only as of, and are based
only upon information available on, the date the statements were
made. The Company assumes no obligation to update forward-looking
information to reflect actual results, changes in assumptions, or
changes in other factors affecting forward-looking information. If
the Company does update one or more forward-looking statements, no
inference should be drawn that the Company will make additional
updates with respect thereto or with respect to other
forward-looking statements. References to the Company's website are
provided for convenience and, therefore, information on or
available through the website is not, and should not be deemed to
be, incorporated by reference herein.
###
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Condensed
Consolidated Statements of Income (unaudited)
|
|
Millions, Except Per
Share Amounts and
|
4th
Quarter
|
|
|
Full
Year
|
|
Percentages, For the
Periods Ended December
31,
|
2023
|
|
|
2022
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
|
%
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
|
$
|
5,801
|
|
|
$
|
5,768
|
|
|
|
1
|
%
|
|
$
|
22,571
|
|
|
$
|
23,159
|
|
|
|
(3)
|
%
|
Other
revenues
|
|
|
358
|
|
|
|
412
|
|
|
|
(13)
|
|
|
|
1,548
|
|
|
|
1,716
|
|
|
|
(10)
|
|
Total operating
revenues
|
|
|
6,159
|
|
|
|
6,180
|
|
|
|
-
|
|
|
|
24,119
|
|
|
|
24,875
|
|
|
|
(3)
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
1,169
|
|
|
|
1,174
|
|
|
|
-
|
|
|
|
4,818
|
|
|
|
4,645
|
|
|
|
4
|
|
Fuel
|
|
|
759
|
|
|
|
853
|
|
|
|
(11)
|
|
|
|
2,891
|
|
|
|
3,439
|
|
|
|
(16)
|
|
Purchased services and
materials
|
|
|
645
|
|
|
|
633
|
|
|
|
2
|
|
|
|
2,616
|
|
|
|
2,442
|
|
|
|
7
|
|
Depreciation
|
|
|
589
|
|
|
|
569
|
|
|
|
4
|
|
|
|
2,318
|
|
|
|
2,246
|
|
|
|
3
|
|
Equipment and other
rents
|
|
|
229
|
|
|
|
238
|
|
|
|
(4)
|
|
|
|
947
|
|
|
|
898
|
|
|
|
5
|
|
Other
|
|
|
361
|
|
|
|
301
|
|
|
|
20
|
|
|
|
1,447
|
|
|
|
1,288
|
|
|
|
12
|
|
Total operating
expenses
|
|
|
3,752
|
|
|
|
3,768
|
|
|
|
-
|
|
|
|
15,037
|
|
|
|
14,958
|
|
|
|
1
|
|
Operating
Income
|
|
|
2,407
|
|
|
|
2,412
|
|
|
|
-
|
|
|
|
9,082
|
|
|
|
9,917
|
|
|
|
(8)
|
|
Other income,
net
|
|
|
108
|
|
|
|
92
|
|
|
|
17
|
|
|
|
491
|
|
|
|
426
|
|
|
|
15
|
|
Interest
expense
|
|
|
(331)
|
|
|
|
(333)
|
|
|
|
(1)
|
|
|
|
(1,340)
|
|
|
|
(1,271)
|
|
|
|
5
|
|
Income before income
taxes
|
|
|
2,184
|
|
|
|
2,171
|
|
|
|
1
|
|
|
|
8,233
|
|
|
|
9,072
|
|
|
|
(9)
|
|
Income tax
expense
|
|
|
(532)
|
|
|
|
(533)
|
|
|
|
-
|
|
|
|
(1,854)
|
|
|
|
(2,074)
|
|
|
|
(11)
|
|
Net
Income
|
|
$
|
1,652
|
|
|
$
|
1,638
|
|
|
|
1
|
|
|
$
|
6,379
|
|
|
$
|
6,998
|
|
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
2.71
|
|
|
$
|
2.67
|
|
|
|
1
|
%
|
|
$
|
10.47
|
|
|
$
|
11.24
|
|
|
|
(7)
|
%
|
Earnings per share -
diluted
|
|
$
|
2.71
|
|
|
$
|
2.67
|
|
|
|
1
|
|
|
$
|
10.45
|
|
|
$
|
11.21
|
|
|
|
(7)
|
|
Weighted average
number of shares - basic
|
608.9
|
|
|
|
612.7
|
|
|
|
(1)
|
|
|
|
609.2
|
|
|
|
622.7
|
|
|
|
(2)
|
|
Weighted average
number of shares - diluted
|
609.9
|
|
|
|
613.7
|
|
|
|
(1)
|
|
|
|
610.2
|
|
|
|
624.0
|
|
|
|
(2)
|
|
Dividends declared per
share
|
|
$
|
1.30
|
|
|
$
|
1.30
|
|
|
|
-
|
|
|
$
|
5.20
|
|
|
$
|
5.08
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
|
60.9
|
%
|
|
|
61.0
|
%
|
|
|
(0.1)
|
pts
|
|
|
62.3
|
%
|
|
|
60.1
|
%
|
|
|
2.2
|
pts
|
Effective Tax
Rate
|
|
|
24.4
|
%
|
|
|
24.6
|
%
|
|
|
(0.2)
|
|
|
|
22.5
|
%
|
|
|
22.9
|
%
|
|
|
(0.4)
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Freight Revenues
Statistics (unaudited)
|
|
|
|
4th
Quarter
|
|
|
Full
Year
|
|
For the Periods
Ended December 31,
|
|
2023
|
|
|
2022
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
|
%
|
|
Freight Revenues
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
986
|
|
|
$
|
974
|
|
|
|
1
|
%
|
|
$
|
3,644
|
|
|
$
|
3,598
|
|
|
|
1
|
%
|
Fertilizer
|
|
|
194
|
|
|
|
171
|
|
|
|
13
|
|
|
|
757
|
|
|
|
712
|
|
|
|
6
|
|
Food &
refrigerated
|
|
|
264
|
|
|
|
265
|
|
|
|
-
|
|
|
|
1,041
|
|
|
|
1,093
|
|
|
|
(5)
|
|
Coal &
renewables
|
|
|
494
|
|
|
|
523
|
|
|
|
(6)
|
|
|
|
1,916
|
|
|
|
2,134
|
|
|
|
(10)
|
|
Bulk
|
|
|
1,938
|
|
|
|
1,933
|
|
|
|
-
|
|
|
|
7,358
|
|
|
|
7,537
|
|
|
|
(2)
|
|
Industrial chemicals
& plastics
|
|
|
538
|
|
|
|
502
|
|
|
|
7
|
|
|
|
2,176
|
|
|
|
2,158
|
|
|
|
1
|
|
Metals &
minerals
|
|
|
540
|
|
|
|
548
|
|
|
|
(1)
|
|
|
|
2,194
|
|
|
|
2,196
|
|
|
|
-
|
|
Forest
products
|
|
|
335
|
|
|
|
325
|
|
|
|
3
|
|
|
|
1,347
|
|
|
|
1,465
|
|
|
|
(8)
|
|
Energy &
specialized markets
|
|
|
665
|
|
|
|
624
|
|
|
|
7
|
|
|
|
2,521
|
|
|
|
2,386
|
|
|
|
6
|
|
Industrial
|
|
|
2,078
|
|
|
|
1,999
|
|
|
|
4
|
|
|
|
8,238
|
|
|
|
8,205
|
|
|
|
-
|
|
Automotive
|
|
|
600
|
|
|
|
594
|
|
|
|
1
|
|
|
|
2,421
|
|
|
|
2,257
|
|
|
|
7
|
|
Intermodal
|
|
|
1,185
|
|
|
|
1,242
|
|
|
|
(5)
|
|
|
|
4,554
|
|
|
|
5,160
|
|
|
|
(12)
|
|
Premium
|
|
|
1,785
|
|
|
|
1,836
|
|
|
|
(3)
|
|
|
|
6,975
|
|
|
|
7,417
|
|
|
|
(6)
|
|
Total
|
|
$
|
5,801
|
|
|
$
|
5,768
|
|
|
|
1
|
%
|
|
$
|
22,571
|
|
|
$
|
23,159
|
|
|
|
(3)
|
%
|
Revenue Carloads
(Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
216
|
|
|
|
208
|
|
|
|
4
|
%
|
|
|
798
|
|
|
|
798
|
|
|
|
-
|
%
|
Fertilizer
|
|
|
47
|
|
|
|
41
|
|
|
|
15
|
|
|
|
191
|
|
|
|
190
|
|
|
|
1
|
|
Food &
refrigerated
|
|
|
42
|
|
|
|
44
|
|
|
|
(5)
|
|
|
|
175
|
|
|
|
187
|
|
|
|
(6)
|
|
Coal &
renewables
|
|
|
217
|
|
|
|
215
|
|
|
|
1
|
|
|
|
867
|
|
|
|
885
|
|
|
|
(2)
|
|
Bulk
|
|
|
522
|
|
|
|
508
|
|
|
|
3
|
|
|
|
2,031
|
|
|
|
2,060
|
|
|
|
(1)
|
|
Industrial chemicals
& plastics
|
|
|
161
|
|
|
|
151
|
|
|
|
7
|
|
|
|
645
|
|
|
|
637
|
|
|
|
1
|
|
Metals &
minerals
|
|
|
189
|
|
|
|
196
|
|
|
|
(4)
|
|
|
|
793
|
|
|
|
785
|
|
|
|
1
|
|
Forest
products
|
|
|
52
|
|
|
|
52
|
|
|
|
-
|
|
|
|
213
|
|
|
|
241
|
|
|
|
(12)
|
|
Energy &
specialized markets
|
|
|
153
|
|
|
|
140
|
|
|
|
9
|
|
|
|
582
|
|
|
|
552
|
|
|
|
5
|
|
Industrial
|
|
|
555
|
|
|
|
539
|
|
|
|
3
|
|
|
|
2,233
|
|
|
|
2,215
|
|
|
|
1
|
|
Automotive
|
|
|
197
|
|
|
|
198
|
|
|
|
(1)
|
|
|
|
820
|
|
|
|
778
|
|
|
|
5
|
|
Intermodal
[a]
|
|
|
782
|
|
|
|
743
|
|
|
|
5
|
|
|
|
3,028
|
|
|
|
3,116
|
|
|
|
(3)
|
|
Premium
|
|
|
979
|
|
|
|
941
|
|
|
|
4
|
|
|
|
3,848
|
|
|
|
3,894
|
|
|
|
(1)
|
|
Total
|
|
|
2,056
|
|
|
|
1,988
|
|
|
|
3
|
%
|
|
|
8,112
|
|
|
|
8,169
|
|
|
|
(1)
|
%
|
Average Revenue
per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
4,580
|
|
|
$
|
4,681
|
|
|
|
(2)
|
%
|
|
$
|
4,567
|
|
|
$
|
4,509
|
|
|
|
1
|
%
|
Fertilizer
|
|
|
4,085
|
|
|
|
4,167
|
|
|
|
(2)
|
|
|
|
3,962
|
|
|
|
3,749
|
|
|
|
6
|
|
Food &
refrigerated
|
|
|
6,174
|
|
|
|
5,957
|
|
|
|
4
|
|
|
|
5,929
|
|
|
|
5,844
|
|
|
|
1
|
|
Coal &
renewables
|
|
|
2,281
|
|
|
|
2,431
|
|
|
|
(6)
|
|
|
|
2,211
|
|
|
|
2,410
|
|
|
|
(8)
|
|
Bulk
|
|
|
3,712
|
|
|
|
3,799
|
|
|
|
(2)
|
|
|
|
3,623
|
|
|
|
3,658
|
|
|
|
(1)
|
|
Industrial chemicals
& plastics
|
|
|
3,353
|
|
|
|
3,335
|
|
|
|
1
|
|
|
|
3,374
|
|
|
|
3,388
|
|
|
|
-
|
|
Metals &
minerals
|
|
|
2,860
|
|
|
|
2,790
|
|
|
|
3
|
|
|
|
2,765
|
|
|
|
2,797
|
|
|
|
(1)
|
|
Forest
products
|
|
|
6,326
|
|
|
|
6,264
|
|
|
|
1
|
|
|
|
6,310
|
|
|
|
6,092
|
|
|
|
4
|
|
Energy &
specialized markets
|
|
|
4,347
|
|
|
|
4,459
|
|
|
|
(3)
|
|
|
|
4,335
|
|
|
|
4,320
|
|
|
|
-
|
|
Industrial
|
|
|
3,742
|
|
|
|
3,711
|
|
|
|
1
|
|
|
|
3,689
|
|
|
|
3,704
|
|
|
|
-
|
|
Automotive
|
|
|
3,061
|
|
|
|
3,007
|
|
|
|
2
|
|
|
|
2,955
|
|
|
|
2,902
|
|
|
|
2
|
|
Intermodal
[a]
|
|
|
1,515
|
|
|
|
1,672
|
|
|
|
(9)
|
|
|
|
1,504
|
|
|
|
1,656
|
|
|
|
(9)
|
|
Premium
|
|
|
1,824
|
|
|
|
1,953
|
|
|
|
(7)
|
|
|
|
1,813
|
|
|
|
1,905
|
|
|
|
(5)
|
|
Average
|
|
$
|
2,822
|
|
|
$
|
2,902
|
|
|
|
(3)
|
%
|
|
$
|
2,782
|
|
|
$
|
2,835
|
|
|
|
(2)
|
%
|
|
|
[a]
|
For intermodal
shipments each container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Condensed
Consolidated Statements of Financial Position
(unaudited)
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
Millions, Except
Percentages
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,055
|
|
|
$
|
973
|
|
Short-term
investments
|
|
|
16
|
|
|
|
46
|
|
Other current
assets
|
|
|
3,077
|
|
|
|
2,933
|
|
Investments
|
|
|
2,605
|
|
|
|
2,375
|
|
Properties,
net
|
|
|
57,398
|
|
|
|
56,038
|
|
Operating lease
assets
|
|
|
1,643
|
|
|
|
1,672
|
|
Other
assets
|
|
|
1,338
|
|
|
|
1,412
|
|
Total assets
|
|
$
|
67,132
|
|
|
$
|
65,449
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Common Shareholders' Equity
|
|
|
|
|
|
|
|
|
Debt due within one
year
|
|
$
|
1,423
|
|
|
$
|
1,678
|
|
Other current
liabilities
|
|
|
3,683
|
|
|
|
3,842
|
|
Debt due after one
year
|
|
|
31,156
|
|
|
|
31,648
|
|
Operating lease
liabilities
|
|
|
1,245
|
|
|
|
1,300
|
|
Deferred income
taxes
|
|
|
13,123
|
|
|
|
13,033
|
|
Other long-term
liabilities
|
|
|
1,714
|
|
|
|
1,785
|
|
Total
liabilities
|
|
|
52,344
|
|
|
|
53,286
|
|
Total common
shareholders' equity
|
|
|
14,788
|
|
|
|
12,163
|
|
Total liabilities and
common shareholders' equity
|
|
$
|
67,132
|
|
|
$
|
65,449
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Common Shareholders' Equity
|
47.3
|
%
|
|
|
53.2
|
%
|
Return on Invested
Capital as Adjusted (ROIC)*
|
15.5
|
%
|
|
|
17.3
|
%
|
|
|
*
|
ROIC is a non-GAAP
measure; however, management believes that it is an important
measure in evaluating the efficiency and effectiveness of our
long-term capital investments. See page 9 for a reconciliation to
GAAP.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Condensed
Consolidated Statements of Cash Flows
(unaudited)
|
|
Millions,
|
|
Full
Year
|
|
For the Periods
Ended December 31,
|
|
2023
|
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
6,379
|
|
|
$
|
6,998
|
|
Depreciation
|
|
|
2,318
|
|
|
|
2,246
|
|
Deferred and other
income taxes
|
|
|
117
|
|
|
|
262
|
|
Other - net
|
|
|
(435)
|
|
|
|
(144)
|
|
Cash provided by
operating activities
|
|
|
8,379
|
|
|
|
9,362
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Capital
investments*
|
|
|
(3,606)
|
|
|
|
(3,620)
|
|
Other - net
|
|
|
(61)
|
|
|
|
149
|
|
Cash used in investing
activities
|
|
|
(3,667)
|
|
|
|
(3,471)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(3,173)
|
|
|
|
(3,159)
|
|
Debt repaid
|
|
|
(2,190)
|
|
|
|
(2,291)
|
|
Debt issued
|
|
|
1,599
|
|
|
|
6,080
|
|
Share repurchase
programs
|
|
|
(705)
|
|
|
|
(6,282)
|
|
Other - net
|
|
|
(156)
|
|
|
|
(235)
|
|
Cash used in financing
activities
|
|
|
(4,625)
|
|
|
|
(5,887)
|
|
Net change in cash,
cash equivalents, and restricted cash
|
87
|
|
|
|
4
|
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
987
|
|
|
|
983
|
|
Cash, cash equivalents,
and restricted cash at end of year
|
$
|
1,074
|
|
|
$
|
987
|
|
Free Cash
Flow**
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
$
|
8,379
|
|
|
$
|
9,362
|
|
Cash used in investing
activities
|
|
|
(3,667)
|
|
|
|
(3,471)
|
|
Dividends
paid
|
|
|
(3,173)
|
|
|
|
(3,159)
|
|
Free cash
flow
|
|
$
|
1,539
|
|
|
$
|
2,732
|
|
|
|
*
|
Capital investments
include locomotive and freight car early lease buyouts of
$57 million in 2023 and $70 million in 2022.
|
**
|
Free cash flow is a
non-GAAP measure; however, we believe this measure is important to
management and investors in evaluating our financial performance
and measures our ability to generate cash without additional
external financing.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Operating and
Performance Statistics (unaudited)
|
|
|
|
4th
Quarter
|
|
|
Full
Year
|
|
For the Periods
Ended December 31,
|
|
2023
|
|
|
2022
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
|
%
|
|
Operating/Performance Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight car velocity
(daily miles per car)*
|
|
|
217
|
|
|
|
191
|
|
|
|
14
|
%
|
|
|
204
|
|
|
|
191
|
|
|
|
7
|
%
|
Average train speed
(miles per hour)*
|
|
|
24.9
|
|
|
|
23.8
|
|
|
|
5
|
|
|
|
24.2
|
|
|
|
23.8
|
|
|
|
2
|
|
Average terminal dwell
time (hours)*
|
|
|
22.7
|
|
|
|
24.5
|
|
|
|
(7)
|
|
|
|
23.4
|
|
|
|
24.4
|
|
|
|
(4)
|
|
Locomotive
productivity (GTMs per horsepower day)
|
140
|
|
|
|
123
|
|
|
|
14
|
|
|
|
129
|
|
|
|
125
|
|
|
|
3
|
|
Gross ton-miles (GTMs)
(millions)
|
|
|
214,570
|
|
|
|
208,949
|
|
|
|
3
|
|
|
|
837,502
|
|
|
|
843,443
|
|
|
|
(1)
|
|
Train length
(feet)
|
|
|
9,413
|
|
|
|
9,191
|
|
|
|
2
|
|
|
|
9,356
|
|
|
|
9,329
|
|
|
|
-
|
|
Intermodal car trip
plan compliance (%)**
|
|
|
85
|
|
|
|
73
|
|
|
|
12
|
pts
|
|
|
78
|
|
|
|
67
|
|
|
|
11
|
pts
|
Manifest/Automotive
car trip plan compliance (%)**
|
70
|
|
|
|
58
|
|
|
|
12
|
pts
|
|
|
65
|
|
|
|
59
|
|
|
|
6
|
pts
|
Workforce productivity
(car miles per employee)
|
1,051
|
|
|
|
1,010
|
|
|
|
4
|
|
|
|
1,000
|
|
|
|
1,036
|
|
|
|
(3)
|
|
Total employees
(average)
|
|
|
30,559
|
|
|
|
31,120
|
|
|
|
(2)
|
|
|
|
31,490
|
|
|
|
30,717
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locomotive Fuel
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel price per
gallon consumed
|
$
|
3.16
|
|
|
$
|
3.70
|
|
|
|
(15)
|
%
|
|
$
|
3.09
|
|
|
$
|
3.65
|
|
|
|
(15)
|
%
|
Fuel consumed in
gallons (millions)
|
|
|
234
|
|
|
|
222
|
|
|
|
5
|
|
|
|
911
|
|
|
|
909
|
|
|
|
-
|
|
Fuel consumption
rate***
|
|
|
1.091
|
|
|
|
1.064
|
|
|
|
3
|
|
|
|
1.088
|
|
|
|
1.078
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Ton-Miles
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
21,166
|
|
|
|
20,683
|
|
|
|
2
|
%
|
|
|
77,717
|
|
|
|
79,725
|
|
|
|
(3)
|
%
|
Fertilizer
|
|
|
2,960
|
|
|
|
2,701
|
|
|
|
10
|
|
|
|
12,031
|
|
|
|
11,769
|
|
|
|
2
|
|
Food &
refrigerated
|
|
|
4,586
|
|
|
|
4,576
|
|
|
|
-
|
|
|
|
18,286
|
|
|
|
17,965
|
|
|
|
2
|
|
Coal &
renewables
|
|
|
21,876
|
|
|
|
21,847
|
|
|
|
-
|
|
|
|
88,604
|
|
|
|
91,824
|
|
|
|
(4)
|
|
Bulk
|
|
|
50,588
|
|
|
|
49,807
|
|
|
|
2
|
|
|
|
196,638
|
|
|
|
201,283
|
|
|
|
(2)
|
|
Industrial chemicals
& plastics
|
|
|
7,040
|
|
|
|
6,626
|
|
|
|
6
|
|
|
|
28,837
|
|
|
|
29,572
|
|
|
|
(2)
|
|
Metals &
minerals
|
|
|
8,712
|
|
|
|
9,367
|
|
|
|
(7)
|
|
|
|
36,121
|
|
|
|
37,827
|
|
|
|
(5)
|
|
Forest
products
|
|
|
5,447
|
|
|
|
5,546
|
|
|
|
(2)
|
|
|
|
22,447
|
|
|
|
25,438
|
|
|
|
(12)
|
|
Energy &
specialized markets
|
|
|
10,349
|
|
|
|
9,575
|
|
|
|
8
|
|
|
|
39,286
|
|
|
|
37,068
|
|
|
|
6
|
|
Industrial
|
|
|
31,548
|
|
|
|
31,114
|
|
|
|
1
|
|
|
|
126,691
|
|
|
|
129,905
|
|
|
|
(2)
|
|
Automotive
|
|
|
4,369
|
|
|
|
4,384
|
|
|
|
-
|
|
|
|
18,080
|
|
|
|
17,018
|
|
|
|
6
|
|
Intermodal
|
|
|
18,438
|
|
|
|
17,622
|
|
|
|
5
|
|
|
|
71,890
|
|
|
|
72,546
|
|
|
|
(1)
|
|
Premium
|
|
|
22,807
|
|
|
|
22,006
|
|
|
|
4
|
|
|
|
89,970
|
|
|
|
89,564
|
|
|
|
-
|
|
Total
|
|
|
104,943
|
|
|
|
102,927
|
|
|
|
2
|
%
|
|
|
413,299
|
|
|
|
420,752
|
|
|
|
(2)
|
%
|
|
|
*
|
Surface Transportation
Board (STB) reported performance measures.
|
**
|
Methodology used to
report is not comparable with the reporting to the STB under docket
number EP 770.
|
***
|
Fuel consumption is
computed as follows: gallons of fuel consumed divided by gross
ton-miles in thousands.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Condensed
Consolidated Statements of Income (unaudited)
|
|
Millions,
|
2023
|
|
Except Per Share
Amounts and Percentages,
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
|
$
|
5,656
|
|
|
$
|
5,569
|
|
|
$
|
5,545
|
|
|
$
|
5,801
|
|
|
$
|
22,571
|
|
Other
revenues
|
|
|
400
|
|
|
|
394
|
|
|
|
396
|
|
|
|
358
|
|
|
|
1,548
|
|
Total operating
revenues
|
|
|
6,056
|
|
|
|
5,963
|
|
|
|
5,941
|
|
|
|
6,159
|
|
|
|
24,119
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
1,179
|
|
|
|
1,269
|
|
|
|
1,201
|
|
|
|
1,169
|
|
|
|
4,818
|
|
Fuel
|
|
|
766
|
|
|
|
664
|
|
|
|
702
|
|
|
|
759
|
|
|
|
2,891
|
|
Purchased services and
materials
|
|
|
653
|
|
|
|
650
|
|
|
|
668
|
|
|
|
645
|
|
|
|
2,616
|
|
Depreciation
|
|
|
572
|
|
|
|
577
|
|
|
|
580
|
|
|
|
589
|
|
|
|
2,318
|
|
Equipment and other
rents
|
|
|
235
|
|
|
|
248
|
|
|
|
235
|
|
|
|
229
|
|
|
|
947
|
|
Other
|
|
|
357
|
|
|
|
351
|
|
|
|
378
|
|
|
|
361
|
|
|
|
1,447
|
|
Total operating
expenses
|
|
|
3,762
|
|
|
|
3,759
|
|
|
|
3,764
|
|
|
|
3,752
|
|
|
|
15,037
|
|
Operating
Income
|
|
|
2,294
|
|
|
|
2,204
|
|
|
|
2,177
|
|
|
|
2,407
|
|
|
|
9,082
|
|
Other income,
net
|
|
|
184
|
|
|
|
93
|
|
|
|
106
|
|
|
|
108
|
|
|
|
491
|
|
Interest
expense
|
|
|
(336)
|
|
|
|
(339)
|
|
|
|
(334)
|
|
|
|
(331)
|
|
|
|
(1,340)
|
|
Income before income
taxes
|
|
|
2,142
|
|
|
|
1,958
|
|
|
|
1,949
|
|
|
|
2,184
|
|
|
|
8,233
|
|
Income tax
expense
|
|
|
(512)
|
|
|
|
(389)
|
|
|
|
(421)
|
|
|
|
(532)
|
|
|
|
(1,854)
|
|
Net
Income
|
|
$
|
1,630
|
|
|
$
|
1,569
|
|
|
$
|
1,528
|
|
|
$
|
1,652
|
|
|
$
|
6,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
2.67
|
|
|
$
|
2.58
|
|
|
$
|
2.51
|
|
|
$
|
2.71
|
|
|
$
|
10.47
|
|
Earnings per share -
diluted
|
|
$
|
2.67
|
|
|
$
|
2.57
|
|
|
$
|
2.51
|
|
|
$
|
2.71
|
|
|
$
|
10.45
|
|
Weighted average
number of shares - basic
|
|
|
610.6
|
|
|
|
608.7
|
|
|
|
608.7
|
|
|
|
608.9
|
|
|
|
609.2
|
|
Weighted average
number of shares - diluted
|
|
|
611.5
|
|
|
|
609.5
|
|
|
|
609.8
|
|
|
|
609.9
|
|
|
|
610.2
|
|
Dividends declared per
share
|
|
$
|
1.30
|
|
|
$
|
1.30
|
|
|
$
|
1.30
|
|
|
$
|
1.30
|
|
|
$
|
5.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
|
62.1
|
%
|
|
|
63.0
|
%
|
|
|
63.4
|
%
|
|
|
60.9
|
%
|
|
|
62.3
|
%
|
Effective Tax
Rate
|
|
|
23.9
|
%
|
|
|
19.9
|
%
|
|
|
21.6
|
%
|
|
|
24.4
|
%
|
|
|
22.5
|
%
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Freight Revenues
Statistics (unaudited)
|
|
|
|
2023
|
|
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
|
Freight Revenues
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
943
|
|
|
$
|
890
|
|
|
$
|
825
|
|
|
$
|
986
|
|
|
$
|
3,644
|
|
Fertilizer
|
|
|
186
|
|
|
|
183
|
|
|
|
194
|
|
|
|
194
|
|
|
|
757
|
|
Food &
refrigerated
|
|
|
263
|
|
|
|
255
|
|
|
|
259
|
|
|
|
264
|
|
|
|
1,041
|
|
Coal &
renewables
|
|
|
505
|
|
|
|
429
|
|
|
|
488
|
|
|
|
494
|
|
|
|
1,916
|
|
Bulk
|
|
|
1,897
|
|
|
|
1,757
|
|
|
|
1,766
|
|
|
|
1,938
|
|
|
|
7,358
|
|
Industrial chemicals
& plastics
|
|
|
536
|
|
|
|
545
|
|
|
|
557
|
|
|
|
538
|
|
|
|
2,176
|
|
Metals &
minerals
|
|
|
536
|
|
|
|
562
|
|
|
|
556
|
|
|
|
540
|
|
|
|
2,194
|
|
Forest
products
|
|
|
332
|
|
|
|
347
|
|
|
|
333
|
|
|
|
335
|
|
|
|
1,347
|
|
Energy &
specialized markets
|
|
|
613
|
|
|
|
632
|
|
|
|
611
|
|
|
|
665
|
|
|
|
2,521
|
|
Industrial
|
|
|
2,017
|
|
|
|
2,086
|
|
|
|
2,057
|
|
|
|
2,078
|
|
|
|
8,238
|
|
Automotive
|
|
|
587
|
|
|
|
625
|
|
|
|
609
|
|
|
|
600
|
|
|
|
2,421
|
|
Intermodal
|
|
|
1,155
|
|
|
|
1,101
|
|
|
|
1,113
|
|
|
|
1,185
|
|
|
|
4,554
|
|
Premium
|
|
|
1,742
|
|
|
|
1,726
|
|
|
|
1,722
|
|
|
|
1,785
|
|
|
|
6,975
|
|
Total
|
|
$
|
5,656
|
|
|
$
|
5,569
|
|
|
$
|
5,545
|
|
|
|
5,801
|
|
|
|
22,571
|
|
Revenue Carloads
(Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
202
|
|
|
|
197
|
|
|
|
183
|
|
|
|
216
|
|
|
|
798
|
|
Fertilizer
|
|
|
45
|
|
|
|
48
|
|
|
|
51
|
|
|
|
47
|
|
|
|
191
|
|
Food &
refrigerated
|
|
|
44
|
|
|
|
44
|
|
|
|
45
|
|
|
|
42
|
|
|
|
175
|
|
Coal &
renewables
|
|
|
216
|
|
|
|
203
|
|
|
|
231
|
|
|
|
217
|
|
|
|
867
|
|
Bulk
|
|
|
507
|
|
|
|
492
|
|
|
|
510
|
|
|
|
522
|
|
|
|
2,031
|
|
Industrial chemicals
& plastics
|
|
|
157
|
|
|
|
164
|
|
|
|
163
|
|
|
|
161
|
|
|
|
645
|
|
Metals &
minerals
|
|
|
188
|
|
|
|
210
|
|
|
|
206
|
|
|
|
189
|
|
|
|
793
|
|
Forest
products
|
|
|
52
|
|
|
|
55
|
|
|
|
54
|
|
|
|
52
|
|
|
|
213
|
|
Energy &
specialized markets
|
|
|
139
|
|
|
|
144
|
|
|
|
146
|
|
|
|
153
|
|
|
|
582
|
|
Industrial
|
|
|
536
|
|
|
|
573
|
|
|
|
569
|
|
|
|
555
|
|
|
|
2,233
|
|
Automotive
|
|
|
200
|
|
|
|
213
|
|
|
|
210
|
|
|
|
197
|
|
|
|
820
|
|
Intermodal
[a]
|
|
|
734
|
|
|
|
749
|
|
|
|
763
|
|
|
|
782
|
|
|
|
3,028
|
|
Premium
|
|
|
934
|
|
|
|
962
|
|
|
|
973
|
|
|
|
979
|
|
|
|
3,848
|
|
Total
|
|
|
1,977
|
|
|
|
2,027
|
|
|
|
2,052
|
|
|
|
2,056
|
|
|
|
8,112
|
|
Average Revenue
per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
4,668
|
|
|
$
|
4,527
|
|
|
$
|
4,486
|
|
|
$
|
4,580
|
|
|
$
|
4,567
|
|
Fertilizer
|
|
|
4,135
|
|
|
|
3,830
|
|
|
|
3,818
|
|
|
|
4,085
|
|
|
|
3,962
|
|
Food &
refrigerated
|
|
|
5,963
|
|
|
|
5,740
|
|
|
|
5,847
|
|
|
|
6,174
|
|
|
|
5,929
|
|
Coal &
renewables
|
|
|
2,341
|
|
|
|
2,107
|
|
|
|
2,114
|
|
|
|
2,281
|
|
|
|
2,211
|
|
Bulk
|
|
|
3,743
|
|
|
|
3,568
|
|
|
|
3,465
|
|
|
|
3,712
|
|
|
|
3,623
|
|
Industrial chemicals
& plastics
|
|
|
3,402
|
|
|
|
3,336
|
|
|
|
3,406
|
|
|
|
3,353
|
|
|
|
3,374
|
|
Metals &
minerals
|
|
|
2,853
|
|
|
|
2,677
|
|
|
|
2,688
|
|
|
|
2,860
|
|
|
|
2,765
|
|
Forest
products
|
|
|
6,384
|
|
|
|
6,337
|
|
|
|
6,197
|
|
|
|
6,326
|
|
|
|
6,310
|
|
Energy &
specialized markets
|
|
|
4,408
|
|
|
|
4,388
|
|
|
|
4,201
|
|
|
|
4,347
|
|
|
|
4,335
|
|
Industrial
|
|
|
3,760
|
|
|
|
3,646
|
|
|
|
3,612
|
|
|
|
3,742
|
|
|
|
3,689
|
|
Automotive
|
|
|
2,944
|
|
|
|
2,928
|
|
|
|
2,894
|
|
|
|
3,061
|
|
|
|
2,955
|
|
Intermodal
[a]
|
|
|
1,573
|
|
|
|
1,471
|
|
|
|
1,459
|
|
|
|
1,515
|
|
|
|
1,504
|
|
Premium
|
|
|
1,866
|
|
|
|
1,794
|
|
|
|
1,769
|
|
|
|
1,824
|
|
|
|
1,813
|
|
Average
|
|
$
|
2,861
|
|
|
$
|
2,748
|
|
|
$
|
2,702
|
|
|
$
|
2,822
|
|
|
$
|
2,782
|
|
|
|
[a]
|
For intermodal
shipments each container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Non-GAAP Measures
Reconciliation to GAAP (unaudited)
|
|
Debt / Net
Income
|
|
|
|
|
|
|
|
|
Millions, Except
Ratios
|
|
2023
|
|
|
2022
|
|
Debt
|
|
$
|
32,579
|
|
|
$
|
33,326
|
|
Net income
|
|
$
|
6,379
|
|
|
$
|
6,998
|
|
Debt / net
income
|
|
|
5.1
|
|
|
|
4.8
|
|
|
Adjusted Debt /
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Millions, Except
Ratios
|
|
2023
|
|
|
2022
|
|
Net income
|
|
$
|
6,379
|
|
|
$
|
6,998
|
|
Add:
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
1,854
|
|
|
|
2,074
|
|
Depreciation
|
|
|
2,318
|
|
|
|
2,246
|
|
Interest
expense
|
|
|
1,340
|
|
|
|
1,271
|
|
EBITDA
|
|
$
|
11,891
|
|
|
$
|
12,589
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
(491)
|
|
|
|
(426)
|
|
Interest on operating
lease liabilities**
|
|
|
58
|
|
|
|
54
|
|
Adjusted
EBITDA
|
|
$
|
11,458
|
|
|
$
|
12,217
|
|
Debt
|
|
$
|
32,579
|
|
|
$
|
33,326
|
|
Operating lease
liabilities
|
|
|
1,600
|
|
|
|
1,631
|
|
Adjusted
debt
|
|
$
|
34,179
|
|
|
$
|
34,957
|
|
Adjusted debt /
adjusted EBITDA
|
|
|
3.0
|
|
|
|
2.9
|
|
|
Comparable
Adjusted Debt / Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
Adjusted debt /
Adjusted EBITDA
|
|
|
3.0
|
|
|
|
2.9
|
|
Factors Affecting
Comparability:
|
|
|
|
|
|
|
|
|
Labor accrual
adjustment [a]
|
|
|
-
|
|
|
|
(0.1)
|
|
Comparable adjusted
debt / adjusted EBITDA
|
|
|
3.0
|
|
|
|
2.8
|
|
|
|
[a]
|
Adjustments remove the
impact of $69 million from net income and $23 million
from income tax expense for the year ended December 31, 2022. See
page 10 for a reconciliation to GAAP.
|
|
|
*
|
Total debt plus
operating lease liabilities plus after-tax unfunded pension and
OPEB (other post retirement benefit) obligations divided by
net income plus income tax expense, depreciation, amortization,
interest expense, and adjustments for other income and interest on
operating lease liabilities. Adjusted debt to adjusted EBITDA
(earnings before interest, taxes, depreciation, amortization, and
adjustments for other income and interest on operating lease
liabilities) and comparable adjusted debt to adjusted EBITDA are
considered non-GAAP financial measures by SEC Regulation G and
Item 10 of SEC Regulation S-K and may not be defined and calculated
by other companies in the same manner. We believe these measures
are important to management and investors in evaluating the
Company's ability to sustain given debt levels (including leases)
with the cash generated from operations. In addition, a comparable
measure is used by rating agencies when reviewing the Company's
credit rating. Adjusted debt to adjusted EBITDA and comparable
adjusted debt to adjusted EBITDA should be considered in addition
to, rather than as a substitute for, other information provided in
accordance with GAAP. The most comparable GAAP measure is debt to
net income ratio. The tables above provide reconciliations
from net income to adjusted EBITDA, debt to adjusted debt, debt to
net income to adjusted debt to adjusted EBITDA, and adjusted
debt to adjusted EBITDA to comparable adjusted debt to
adjusted EBITDA. At December 31, 2023 and 2022, the incremental
borrowing rate on operating lease liabilities was 3.6%
and 3.3%, respectively. Pension and OPEB were funded at
December 31, 2023 and 2022.
|
|
|
**
|
Represents the
hypothetical interest expense we would incur (using the incremental
borrowing rate) if the property under our operating leases were
owned or accounted for as finance leases.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Non-GAAP Measures
Reconciliation to GAAP (unaudited)
|
|
Return on Average
Common Shareholders' Equity
|
|
|
|
|
|
|
|
|
Millions, Except
Percentages
|
|
2023
|
|
|
2022
|
|
Net income
|
|
$
|
6,379
|
|
|
$
|
6,998
|
|
Average
equity
|
|
$
|
13,476
|
|
|
$
|
13,162
|
|
Return on average
common shareholders' equity
|
|
|
47.3
|
%
|
|
|
53.2
|
%
|
|
Return on
Invested Capital as Adjusted (ROIC)*
|
|
|
|
|
|
|
|
|
Millions, Except
Percentages
|
|
2023
|
|
|
2022
|
|
Net income
|
|
$
|
6,379
|
|
|
$
|
6,998
|
|
Interest
expense
|
|
|
1,340
|
|
|
|
1,271
|
|
Interest on average
operating lease liabilities
|
|
|
58
|
|
|
|
56
|
|
Taxes on
interest
|
|
|
(315)
|
|
|
|
(304)
|
|
Net operating profit
after taxes as adjusted
|
|
$
|
7,462
|
|
|
$
|
8,021
|
|
Average
equity
|
|
$
|
13,476
|
|
|
$
|
13,162
|
|
Average debt
|
|
|
32,953
|
|
|
|
31,528
|
|
Average operating lease
liabilities
|
|
|
1,616
|
|
|
|
1,695
|
|
Average invested
capital as adjusted
|
|
$
|
48,045
|
|
|
$
|
46,385
|
|
Return on invested
capital as adjusted
|
|
|
15.5
|
%
|
|
|
17.3
|
%
|
|
Comparable Return
on Invested Capital as Adjusted (Comparable
ROIC)*
|
|
|
|
2023
|
|
|
2022
|
|
Return on invested
capital as adjusted
|
|
|
15.5
|
%
|
|
|
17.3
|
%
|
Factors Affecting
Comparability:
|
|
|
|
|
|
|
|
|
Labor accrual
adjustment [a]
|
|
|
-
|
|
|
|
0.1
|
|
Comparable return on
invested capital as adjusted
|
|
|
15.5
|
%
|
|
|
17.4
|
%
|
|
|
[a]
|
Adjustments remove the
impact of $69 million from both net income for the year
ended and shareholders' equity as of December 31, 2022. See
page 10 for a reconciliation to GAAP.
|
|
|
*
|
ROIC and comparable
ROIC are considered non-GAAP financial measures by SEC Regulation G
and Item 10 of SEC Regulation S-K and may not be defined and
calculated by other companies in the same manner. We believe these
measures are important to management and investors in evaluating
the efficiency and effectiveness of our long-term capital
investments. In addition, we currently use ROIC as a performance
criterion in determining certain elements of equity
compensation for our executives. ROIC and comparable ROIC should be
considered in addition to, rather than as a substitute for, other
information provided in accordance with GAAP. The most comparable
GAAP measure is return on average common shareholders' equity. The
tables above provide reconciliations from return on average common
shareholders' equity to ROIC and comparable ROIC. At December 31,
2023 and 2022, the incremental
borrowing rate on operating lease liabilities was 3.6%
and 3.3%, respectively.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Non-GAAP Measures
Reconciliation to GAAP (unaudited)
|
|
Financial
Performance*
|
|
Reported
results
|
Labor
accrual
|
Adjusted
results
|
|
Millions, Except Per
Share Amounts and Percentages
|
|
|
(GAAP)
|
|
|
|
adjustment
|
|
|
|
|
(non-GAAP)
|
|
For the Twelve
Months Ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits expense
|
|
$
|
4,645
|
|
|
$
|
(92)
|
|
|
|
$
|
4,553
|
|
Operating
expense
|
|
|
14,958
|
|
|
|
(92)
|
|
|
|
|
14,866
|
|
Operating
income
|
|
|
9,917
|
|
|
|
92
|
|
|
|
|
10,009
|
|
Income taxes
|
|
|
(2,074)
|
|
|
|
(23)
|
|
|
|
|
(2,097)
|
|
Net income
|
|
|
6,998
|
|
|
|
69
|
|
|
|
|
7,067
|
|
Diluted EPS
|
|
|
11.21
|
|
|
|
0.12
|
|
|
|
|
11.33
|
|
Operating
ratio
|
|
|
60.1
|
%
|
|
|
(0.3)
|
|
pts
|
|
|
59.8
|
%
|
As of December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
12,163
|
|
|
$
|
69
|
|
|
|
$
|
12,232
|
|
|
|
*
|
The above table
reconciles our results for the twelve months ended and as of
December 31, 2022, to adjust results that exclude the impact
of certain items identified as affecting comparability. We use
adjusted compensation and benefits expense, adjusted operating
expense, adjusted operating income, adjusted income taxes,
adjusted net income, adjusted diluted EPS (earnings per share),
adjusted operating ratio, and adjusted shareholders' equity,
as applicable, among other measures, to evaluate our actual
operating performance. We believe these non-GAAP financial
measures provide valuable information regarding earnings and
business trends by excluding specific items that we believe
are not indicative of our ongoing operating results of our
business, providing a useful way for investors to make
a comparison of our performance over time and against other
companies in our industry. Since these are not measures of
performance calculated in accordance with GAAP, they should be
considered in addition to, rather than as a substitute for,
compensation and benefits expense, operating
expense, operating income, income taxes, net income, diluted
EPS, operating ratio, and shareholders' equity as indicators of
operating performance.
|
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SOURCE Union Pacific Corporation