OMAHA, Neb., Jan. 21, 2021 /PRNewswire/ -- Union Pacific
Corporation (NYSE: UNP) today reported 2020 fourth quarter net
income of $1.4 billion, or
$2.05 per diluted share. These
results include a previously announced $278
million pre-tax, non-cash impairment charge. Excluding
the effects of that charge, adjusted fourth quarter net income was
$1.6 billion, or $2.36 per diluted share. This compares to
$1.4 billion, or $2.02 per diluted share, in the fourth quarter
2019.
"These outstanding results demonstrate the true potential of our
franchise as we leveraged all three profitability drivers
simultaneously – volume growth, productivity, and pricing – to
produce record fourth quarter results," said Lance Fritz, Union Pacific chairman, president,
and chief executive officer. "The women and men of Union Pacific
persevered throughout the pandemic to provide our customers with a
safe, reliable, and consistent service product."
Fourth Quarter Summary
Operating revenue of
$5.1 billion was down 1% in fourth
quarter 2020 compared to fourth quarter 2019. Fourth quarter
business volumes, as measured by total revenue carloads, increased
3% compared to 2019. Premium volumes increased compared to 2019,
while bulk was flat and industrial declined. In addition:
- Quarterly freight revenue declined 1% compared to fourth
quarter 2019, as volume growth and core pricing gains were more
than offset by decreased fuel surcharge revenue and a less
favorable business mix.
- Union Pacific's 61.0% reported operating ratio when adjusted
for the impairment charge is an all-time quarterly record of 55.6%,
410 basis points lower than fourth quarter 2019. Lower fuel prices
positively impacted the operating ratio by 90 basis points.
- Quarterly freight car velocity was 223 daily miles per car, a
1% improvement compared to fourth quarter 2019.
- Quarterly locomotive productivity was 142 gross ton-miles per
horsepower day, a 13% improvement compared to fourth quarter
2019.
- Quarterly workforce productivity was 1,032 car miles per
employee, an 18% improvement compared to fourth quarter 2019.
- Average maximum train length was 9,154 feet, a 12% increase
compared to fourth quarter 2019.
- The Company repurchased 3.8 million shares in fourth quarter
2020 at an aggregate cost of $749
million.
Summary of Fourth Quarter Freight Revenues
- Bulk up 1%
- Industrial down 7%
- Premium up 5%
2020 Full Year Summary
For the full year 2020, Union
Pacific reported net income of $5.3
billion or $7.88 per diluted
share. Excluding the effects of the $278 million pre-tax, non-cash impairment charge,
adjusted full year net income was $5.6
billion, or $8.19 per diluted
share. This compares to $5.9 billion,
or $8.38 per diluted share, in
2019.
Operating revenue totaled $19.5
billion compared to $21.7
billion in 2019. Operating income totaled $7.8 billion, which decreased compared to
2019. In addition:
- Freight revenue totaled $18.3
billion, a 10% decrease compared to 2019. Carloadings
were down 7% versus 2019, as all three business teams – bulk,
industrial, and premium – declined due to the economic conditions
brought on by the COVID-19 pandemic.
- Union Pacific's full year 59.9% reported operating ratio when
adjusted for the impairment charge is a best ever 58.5%, 210 basis
points lower than 2019. Lower fuel prices positively impacted the
operating ratio by 130 basis points.
- Union Pacific's reportable personal injury rate of 0.90
incidents per 200,000 employee hours was flat compared to full year
2019. The Company's FRA reportable rail equipment incident rate of
3.54 per million train miles improved 17% compared to full year
2019.
- Through continued implementation of precision scheduled
railroading principles, Union Pacific made year-over-year
improvements in its key operating performance indicators:
-
- Freight car velocity – 6% improvement
- Average terminal dwell – 8% improvement
- Locomotive productivity – 14% improvement
- Workforce productivity – 11% improvement
- Train length – 14% improvement
- Intermodal car trip plan compliance – 6 pt. improvement
- Manifest/Autos car trip plan compliance – 6 pt.
improvement
- Fuel consumption rate, measured in gallons of fuel per thousand
gross ton miles, improved 2% in 2020 compared to 2019.
- Union Pacific's capital program in 2020 totaled $2.8 billion.
- Union Pacific repurchased 22 million shares in 2020 at an
aggregate cost of $3.7 billion.
2021 Outlook
"While the economic outlook for 2021
remains uncertain, we will build off our solid 2020 performance to
produce continued strong productivity through operational
excellence. We expect our enhanced service product will
support both solid core pricing gains while also increasing our
share of the freight transportation market," Fritz said. "Our
confidence in our ability to drive value for all of our
stakeholders has never been greater."
Fourth Quarter 2020 Earnings Conference Call
Union
Pacific will webcast its fourth quarter 2020 earnings release
presentation live at www.up.com/investor and via teleconference on
Thursday, January 21, 2021, 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 Company's
expectations with respect to economic conditions and demand
levels, its ability to improve network performance, its
results of operations, and potential impacts of the COVID-19
pandemic. 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 2019, which was filed with the SEC on February 7, 2020, and the Company's Quarterly
Report on Form 10-Q, which was filed with the SEC on July 23, 2020. 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 our 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 Percentages,
|
4th
Quarter
|
|
Full
Year
|
For the
Periods Ended December 31,
|
2020
|
2019
|
%
|
|
|
2020
|
2019
|
%
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,803
|
$
|
4,851
|
(1)
|
%
|
|
$
|
18,251
|
$
|
20,243
|
(10)
|
%
|
Other
|
|
338
|
|
361
|
(6)
|
|
|
|
1,282
|
|
1,465
|
(12)
|
|
Total operating
revenues
|
|
5,141
|
|
5,212
|
(1)
|
|
|
|
19,533
|
|
21,708
|
(10)
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,021
|
|
1,049
|
(3)
|
|
|
|
3,993
|
|
4,533
|
(12)
|
|
Depreciation
|
|
557
|
|
559
|
-
|
|
|
|
2,210
|
|
2,216
|
-
|
|
Purchased services and
materials
|
|
492
|
|
531
|
(7)
|
|
|
|
1,962
|
|
2,254
|
(13)
|
|
Fuel
|
|
332
|
|
512
|
(35)
|
|
|
|
1,314
|
|
2,107
|
(38)
|
|
Equipment and other
rents
|
|
220
|
|
230
|
(4)
|
|
|
|
875
|
|
984
|
(11)
|
|
Other
|
|
513
|
|
231
|
U
|
|
|
|
1,345
|
|
1,060
|
27
|
|
Total operating
expenses
|
|
3,135
|
|
3,112
|
1
|
|
|
|
11,699
|
|
13,154
|
(11)
|
|
Operating
Income
|
|
2,006
|
|
2,100
|
(4)
|
|
|
|
7,834
|
|
8,554
|
(8)
|
|
Other
income
|
|
66
|
|
56
|
18
|
|
|
|
287
|
|
243
|
18
|
|
Interest
expense
|
|
(279)
|
|
(278)
|
-
|
|
|
|
(1,141)
|
|
(1,050)
|
9
|
|
Income before
income taxes
|
|
1,793
|
|
1,878
|
(5)
|
|
|
|
6,980
|
|
7,747
|
(10)
|
|
Income
taxes
|
|
(413)
|
|
(475)
|
(13)
|
|
|
|
(1,631)
|
|
(1,828)
|
(11)
|
|
Net
Income
|
$
|
1,380
|
$
|
1,403
|
(2)
|
|
|
$
|
5,349
|
$
|
5,919
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
2.05
|
$
|
2.03
|
1
|
%
|
|
$
|
7.90
|
$
|
8.41
|
(6)
|
%
|
Earnings per share -
diluted
|
$
|
2.05
|
$
|
2.02
|
1
|
|
|
$
|
7.88
|
$
|
8.38
|
(6)
|
|
Weighted average
number of shares - basic
|
|
672.2
|
|
692.2
|
(3)
|
|
|
|
677.3
|
|
703.5
|
(4)
|
|
Weighted average
number of shares - diluted
|
|
674.1
|
|
694.9
|
(3)
|
|
|
|
679.1
|
|
706.1
|
(4)
|
|
Dividends declared per
share
|
$
|
0.97
|
$
|
0.97
|
-
|
|
|
$
|
3.88
|
$
|
3.70
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
61.0%
|
|
59.7%
|
1.3
|
pts
|
|
|
59.9%
|
|
60.6%
|
(0.7)
|
pts
|
Effective
Tax Rate
|
|
23.0%
|
|
25.3%
|
(2.3)
|
|
|
|
23.4%
|
|
23.6%
|
(0.2)
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Freight Revenues
Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Full
Year
|
For the
Periods Ended December 31,
|
2020
|
2019
|
%
|
|
|
2020
|
2019
|
%
|
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
801
|
$
|
696
|
15
|
%
|
|
$
|
2,829
|
$
|
2,776
|
2
|
%
|
Fertilizer
|
|
161
|
|
161
|
-
|
|
|
|
660
|
|
653
|
1
|
|
Food &
refrigerated
|
|
243
|
|
241
|
1
|
|
|
|
937
|
|
1,008
|
(7)
|
|
Coal &
renewables
|
|
357
|
|
451
|
(21)
|
|
|
|
1,534
|
|
2,092
|
(27)
|
|
Bulk
|
|
1,562
|
|
1,549
|
1
|
|
|
|
5,960
|
|
6,529
|
(9)
|
|
Industrial chemicals
& plastics
|
|
461
|
|
457
|
1
|
|
|
|
1,845
|
|
1,885
|
(2)
|
|
Metals &
minerals
|
|
378
|
|
429
|
(12)
|
|
|
|
1,580
|
|
2,042
|
(23)
|
|
Forest
products
|
|
307
|
|
282
|
9
|
|
|
|
1,160
|
|
1,160
|
-
|
|
Energy &
specialized markets
|
|
515
|
|
626
|
(18)
|
|
|
|
2,037
|
|
2,385
|
(15)
|
|
Industrial
|
|
1,661
|
|
1,794
|
(7)
|
|
|
|
6,622
|
|
7,472
|
(11)
|
|
Automotive
|
|
486
|
|
507
|
(4)
|
|
|
|
1,680
|
|
2,123
|
(21)
|
|
Intermodal
|
|
1,094
|
|
1,001
|
9
|
|
|
|
3,989
|
|
4,119
|
(3)
|
|
Premium
|
|
1,580
|
|
1,508
|
5
|
|
|
|
5,669
|
|
6,242
|
(9)
|
|
Total
|
$
|
4,803
|
$
|
4,851
|
(1)
|
%
|
|
$
|
18,251
|
$
|
20,243
|
(10)
|
%
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
216
|
|
180
|
20
|
%
|
|
|
745
|
|
708
|
5
|
%
|
Fertilizer
|
|
44
|
|
45
|
(2)
|
|
|
|
193
|
|
190
|
2
|
|
Food &
refrigerated
|
|
48
|
|
45
|
7
|
|
|
|
185
|
|
192
|
(4)
|
|
Coal &
renewables
|
|
190
|
|
226
|
(16)
|
|
|
|
797
|
|
997
|
(20)
|
|
Bulk
|
|
498
|
|
496
|
-
|
|
|
|
1,920
|
|
2,087
|
(8)
|
|
Industrial chemicals
& plastics
|
|
148
|
|
148
|
-
|
|
|
|
587
|
|
611
|
(4)
|
|
Metals &
minerals
|
|
154
|
|
165
|
(7)
|
|
|
|
646
|
|
744
|
(13)
|
|
Forest
products
|
|
59
|
|
53
|
11
|
|
|
|
220
|
|
220
|
-
|
|
Energy &
specialized markets
|
|
137
|
|
164
|
(16)
|
|
|
|
539
|
|
624
|
(14)
|
|
Industrial
|
|
498
|
|
530
|
(6)
|
|
|
|
1,992
|
|
2,199
|
(9)
|
|
Automotive
|
|
202
|
|
208
|
(3)
|
|
|
|
692
|
|
858
|
(19)
|
|
Intermodal
[a]
|
|
853
|
|
759
|
12
|
|
|
|
3,149
|
|
3,202
|
(2)
|
|
Premium
|
|
1,055
|
|
967
|
9
|
|
|
|
3,841
|
|
4,060
|
(5)
|
|
Total
|
|
2,051
|
|
1,993
|
3
|
%
|
|
|
7,753
|
|
8,346
|
(7)
|
%
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
3,710
|
$
|
3,860
|
(4)
|
%
|
|
$
|
3,797
|
$
|
3,919
|
(3)
|
%
|
Fertilizer
|
|
3,647
|
|
3,636
|
-
|
|
|
|
3,427
|
|
3,448
|
(1)
|
|
Food &
refrigerated
|
|
5,030
|
|
5,340
|
(6)
|
|
|
|
5,047
|
|
5,241
|
(4)
|
|
Coal &
renewables
|
|
1,887
|
|
1,991
|
(5)
|
|
|
|
1,926
|
|
2,098
|
(8)
|
|
Bulk
|
|
3,139
|
|
3,121
|
1
|
|
|
|
3,104
|
|
3,128
|
(1)
|
|
Industrial chemicals
& plastics
|
|
3,125
|
|
3,086
|
1
|
|
|
|
3,144
|
|
3,087
|
2
|
|
Metals &
minerals
|
|
2,448
|
|
2,606
|
(6)
|
|
|
|
2,445
|
|
2,745
|
(11)
|
|
Forest
products
|
|
5,184
|
|
5,313
|
(2)
|
|
|
|
5,269
|
|
5,264
|
-
|
|
Energy &
specialized markets
|
|
3,747
|
|
3,818
|
(2)
|
|
|
|
3,780
|
|
3,821
|
(1)
|
|
Industrial
|
|
3,331
|
|
3,386
|
(2)
|
|
|
|
3,324
|
|
3,398
|
(2)
|
|
Automotive
|
|
2,399
|
|
2,441
|
(2)
|
|
|
|
2,427
|
|
2,474
|
(2)
|
|
Intermodal
[a]
|
|
1,284
|
|
1,319
|
(3)
|
|
|
|
1,267
|
|
1,286
|
(1)
|
|
Premium
|
|
1,497
|
|
1,560
|
(4)
|
|
|
|
1,476
|
|
1,538
|
(4)
|
|
Average
|
$
|
2,341
|
$
|
2,435
|
(4)
|
%
|
|
$
|
2,354
|
$
|
2,425
|
(3)
|
%
|
|
|
[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
|
2020
|
2019
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,799
|
$
|
831
|
Short-term
investments
|
|
60
|
|
60
|
Other current
assets
|
|
2,355
|
|
2,568
|
Investments
|
|
2,164
|
|
2,050
|
Net
properties
|
|
54,161
|
|
53,916
|
Operating lease
assets
|
|
1,610
|
|
1,812
|
Other
assets
|
|
249
|
|
436
|
Total
assets
|
$
|
62,398
|
$
|
61,673
|
|
|
|
|
|
Liabilities
and Common Shareholders' Equity
|
|
|
|
|
Debt due within one
year
|
$
|
1,069
|
$
|
1,257
|
Other current
liabilities
|
|
3,104
|
|
3,094
|
Debt due after one
year
|
|
25,660
|
|
23,943
|
Operating lease
liabilities
|
|
1,283
|
|
1,471
|
Deferred income
taxes
|
|
12,247
|
|
11,992
|
Other long-term
liabilities
|
|
2,077
|
|
1,788
|
Total
liabilities
|
|
45,440
|
|
43,545
|
Total common
shareholders' equity
|
|
16,958
|
|
18,128
|
Total
liabilities and common shareholders' equity
|
$
|
62,398
|
$
|
61,673
|
|
|
|
|
|
Return on
Average Common Shareholders' Equity
|
|
30.5%
|
|
30.7%
|
Return on
Invested Capital as Adjusted (ROIC)*
|
|
13.9%
|
|
15.0%
|
|
|
*
|
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,
|
2020
|
2019
|
Operating
Activities
|
|
|
|
|
Net income
|
$
|
5,349
|
$
|
5,919
|
Depreciation
|
|
2,210
|
|
2,216
|
Deferred income
taxes
|
|
340
|
|
566
|
Other - net
|
|
641
|
|
(92)
|
Cash provided
by operating activities
|
|
8,540
|
|
8,609
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
investments*
|
|
(2,927)
|
|
(3,453)
|
Maturities of
short-term investments
|
|
141
|
|
130
|
Purchases of
short-term investments
|
|
(136)
|
|
(115)
|
Other - net
|
|
246
|
|
3
|
Cash used in
investing activities
|
|
(2,676)
|
|
(3,435)
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Debt issued
|
|
4,004
|
|
3,986
|
Share repurchase
programs
|
|
(3,705)
|
|
(5,804)
|
Dividends
paid
|
|
(2,626)
|
|
(2,598)
|
Debt repaid
|
|
(2,053)
|
|
(817)
|
Debt
exchange
|
|
(328)
|
|
(387)
|
Net issuance of
commercial paper
|
|
(127)
|
|
(6)
|
Other - net
|
|
(67)
|
|
(20)
|
Cash used in
financing activities
|
|
(4,902)
|
|
(5,646)
|
|
|
|
|
|
Net Change
in Cash, Cash Equivalents, and Restricted Cash
|
|
962
|
|
(472)
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
|
856
|
|
1,328
|
Cash, Cash
Equivalents, and Restricted Cash at End of Year
|
$
|
1,818
|
$
|
856
|
|
|
|
|
|
Free Cash
Flow**
|
|
|
|
|
Cash provided by
operating activities
|
$
|
8,540
|
$
|
8,609
|
Cash used in investing
activities
|
|
(2,676)
|
|
(3,435)
|
Dividends
paid
|
|
(2,626)
|
|
(2,598)
|
Free cash
flow
|
$
|
3,238
|
$
|
2,576
|
|
|
*
|
Capital investments
include locomotive and freight car early lease buyouts of $38
million in 2020 and $290 million in 2019.
|
|
|
**
|
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,
|
2020
|
|
2019
|
%
|
|
|
2020
|
|
2019
|
%
|
|
Operating/Performance
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
Freight car velocity
(daily miles per car) [a]
|
223
|
|
220
|
1
|
%
|
|
221
|
|
209
|
6
|
%
|
Average train speed
(miles per hour) [a] *
|
26.1
|
|
26.2
|
-
|
|
|
25.9
|
|
25.1
|
3
|
|
Average terminal dwell
time (hours) [a] *
|
22.4
|
|
23.3
|
(4)
|
|
|
22.7
|
|
24.8
|
(8)
|
|
Locomotive
productivity (GTMs per horsepower day)
|
142
|
|
126
|
13
|
|
|
137
|
|
120
|
14
|
|
Gross ton-miles (GTMs)
(millions)
|
202,844
|
|
200,801
|
1
|
|
|
771,765
|
|
846,616
|
(9)
|
|
Train length
(feet)
|
9,154
|
|
8,185
|
12
|
|
|
8,798
|
|
7,747
|
14
|
|
Intermodal car trip
plan compliance (%)
|
83
|
|
84
|
(1)
|
pts
|
|
81
|
|
75
|
6
|
pts
|
Manifest/Automotive
car trip plan compliance (%)
|
74
|
|
71
|
3
|
pts
|
|
71
|
|
65
|
6
|
pts
|
Workforce productivity
(car miles per employee)
|
1,032
|
|
874
|
18
|
|
|
947
|
|
857
|
11
|
|
Total employees
(average)
|
29,753
|
|
34,563
|
(14)
|
|
|
30,960
|
|
37,483
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locomotive
Fuel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel price per
gallon consumed
|
$1.45
|
|
$ 2.16
|
(33)
|
%
|
|
$
1.50
|
|
$ 2.13
|
(30)
|
%
|
Fuel consumed in
gallons (millions)
|
222
|
|
228
|
(3)
|
|
|
849
|
|
953
|
(11)
|
|
Fuel consumption
rate**
|
1.092
|
|
1.140
|
(4)
|
|
|
1.100
|
|
1.126
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Ton-Miles (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
21,591
|
|
16,298
|
32
|
%
|
|
71,979
|
|
66,264
|
9
|
%
|
Fertilizer
|
2,932
|
|
2,809
|
4
|
|
|
12,024
|
|
11,531
|
4
|
|
Food &
refrigerated
|
4,662
|
|
4,433
|
5
|
|
|
17,534
|
|
18,470
|
(5)
|
|
Coal &
renewables
|
18,128
|
|
21,335
|
(15)
|
|
|
76,695
|
|
100,035
|
(23)
|
|
Bulk
|
47,313
|
|
44,875
|
5
|
|
|
178,232
|
|
196,300
|
(9)
|
|
Industrial chemicals
& plastics
|
7,465
|
|
6,705
|
11
|
|
|
28,095
|
|
28,000
|
-
|
|
Metals &
minerals
|
7,091
|
|
7,772
|
(9)
|
|
|
28,562
|
|
37,175
|
(23)
|
|
Forest
products
|
6,206
|
|
5,734
|
8
|
|
|
23,527
|
|
23,445
|
-
|
|
Energy &
specialized markets
|
9,200
|
|
12,194
|
(25)
|
|
|
36,527
|
|
45,367
|
(19)
|
|
Industrial
|
29,962
|
|
32,405
|
(8)
|
|
|
116,711
|
|
133,987
|
(13)
|
|
Automotive
|
4,337
|
|
4,395
|
(1)
|
|
|
14,835
|
|
18,349
|
(19)
|
|
Intermodal
|
19,854
|
|
18,257
|
9
|
|
|
75,198
|
|
74,797
|
1
|
|
Premium
|
24,191
|
|
22,652
|
7
|
|
|
90,033
|
|
93,146
|
(3)
|
|
Total
|
101,466
|
|
99,932
|
2
|
%
|
|
384,976
|
|
423,433
|
(9)
|
%
|
|
|
[a]
|
Prior years have been
recast to conform to the current year presentation.
|
|
|
*
|
Surface
Transportation Board reported performance
measures.
|
|
|
**
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
Millions,
Except Per Share Amounts and Percentages,
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,880
|
$
|
3,972
|
$
|
4,596
|
$
|
4,803
|
$
|
18,251
|
Other
|
|
349
|
|
272
|
|
323
|
|
338
|
|
1,282
|
Total operating
revenues
|
|
5,229
|
|
4,244
|
|
4,919
|
|
5,141
|
|
19,533
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,059
|
|
905
|
|
1,008
|
|
1,021
|
|
3,993
|
Depreciation
|
|
547
|
|
551
|
|
555
|
|
557
|
|
2,210
|
Purchased services and
materials
|
|
521
|
|
441
|
|
508
|
|
492
|
|
1,962
|
Fuel
|
|
434
|
|
247
|
|
301
|
|
332
|
|
1,314
|
Equipment and other
rents
|
|
227
|
|
211
|
|
217
|
|
220
|
|
875
|
Other
|
|
298
|
|
235
|
|
299
|
|
513
|
|
1,345
|
Total operating
expenses
|
|
3,086
|
|
2,590
|
|
2,888
|
|
3,135
|
|
11,699
|
Operating
Income
|
|
2,143
|
|
1,654
|
|
2,031
|
|
2,006
|
|
7,834
|
Other
income
|
|
53
|
|
131
|
|
37
|
|
66
|
|
287
|
Interest
expense
|
|
(278)
|
|
(289)
|
|
(295)
|
|
(279)
|
|
(1,141)
|
Income before
income taxes
|
|
1,918
|
|
1,496
|
|
1,773
|
|
1,793
|
|
6,980
|
Income
taxes
|
|
(444)
|
|
(364)
|
|
(410)
|
|
(413)
|
|
(1,631)
|
Net
Income
|
$
|
1,474
|
$
|
1,132
|
$
|
1,363
|
$
|
1,380
|
$
|
5,349
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
2.15
|
$
|
1.67
|
$
|
2.02
|
$
|
2.05
|
$
|
7.90
|
Earnings per share -
diluted
|
$
|
2.15
|
$
|
1.67
|
$
|
2.01
|
$
|
2.05
|
$
|
7.88
|
Weighted average
number of shares - basic
|
|
684.3
|
|
677.7
|
|
675.0
|
|
672.2
|
|
677.3
|
Weighted average
number of shares - diluted
|
|
686.2
|
|
679.2
|
|
676.8
|
|
674.1
|
|
679.1
|
Dividends declared per
share
|
$
|
0.97
|
$
|
0.97
|
$
|
0.97
|
$
|
0.97
|
$
|
3.88
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
59.0%
|
|
61.0%
|
|
58.7%
|
|
61.0%
|
|
59.9%
|
Effective
Tax Rate
|
|
23.1%
|
|
24.3%
|
|
23.1%
|
|
23.0%
|
|
23.4%
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Freight Revenues
Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
689
|
$
|
644
|
$
|
695
|
$
|
801
|
$
|
2,829
|
Fertilizer
|
|
174
|
|
168
|
|
157
|
|
161
|
|
660
|
Food &
refrigerated
|
|
250
|
|
205
|
|
239
|
|
243
|
|
937
|
Coal &
renewables
|
|
421
|
|
369
|
|
387
|
|
357
|
|
1,534
|
Bulk
|
|
1,534
|
|
1,386
|
|
1,478
|
|
1,562
|
|
5,960
|
Industrial chemicals
& plastics
|
|
495
|
|
435
|
|
454
|
|
461
|
|
1,845
|
Metals &
minerals
|
|
469
|
|
368
|
|
365
|
|
378
|
|
1,580
|
Forest
products
|
|
303
|
|
266
|
|
284
|
|
307
|
|
1,160
|
Energy &
specialized markets
|
|
627
|
|
431
|
|
464
|
|
515
|
|
2,037
|
Industrial
|
|
1,894
|
|
1,500
|
|
1,567
|
|
1,661
|
|
6,622
|
Automotive
|
|
524
|
|
189
|
|
481
|
|
486
|
|
1,680
|
Intermodal
|
|
928
|
|
897
|
|
1,070
|
|
1,094
|
|
3,989
|
Premium
|
|
1,452
|
|
1,086
|
|
1,551
|
|
1,580
|
|
5,669
|
Total
|
$
|
4,880
|
$
|
3,972
|
$
|
4,596
|
$
|
4,803
|
$
|
18,251
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
175
|
|
167
|
|
187
|
|
216
|
|
745
|
Fertilizer
|
|
46
|
|
53
|
|
50
|
|
44
|
|
193
|
Food &
refrigerated
|
|
48
|
|
41
|
|
48
|
|
48
|
|
185
|
Coal &
renewables
|
|
208
|
|
186
|
|
213
|
|
190
|
|
797
|
Bulk
|
|
477
|
|
447
|
|
498
|
|
498
|
|
1,920
|
Industrial chemicals
& plastics
|
|
154
|
|
141
|
|
144
|
|
148
|
|
587
|
Metals &
minerals
|
|
174
|
|
162
|
|
156
|
|
154
|
|
646
|
Forest
products
|
|
56
|
|
50
|
|
55
|
|
59
|
|
220
|
Energy &
specialized markets
|
|
162
|
|
115
|
|
125
|
|
137
|
|
539
|
Industrial
|
|
546
|
|
468
|
|
480
|
|
498
|
|
1,992
|
Automotive
|
|
208
|
|
79
|
|
203
|
|
202
|
|
692
|
Intermodal
[a]
|
|
709
|
|
724
|
|
863
|
|
853
|
|
3,149
|
Premium
|
|
917
|
|
803
|
|
1,066
|
|
1,055
|
|
3,841
|
Total
|
|
1,940
|
|
1,718
|
|
2,044
|
|
2,051
|
|
7,753
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
3,940
|
$
|
3,861
|
$
|
3,705
|
$
|
3,710
|
$
|
3,797
|
Fertilizer
|
|
3,768
|
|
3,181
|
|
3,172
|
|
3,647
|
|
3,427
|
Food &
refrigerated
|
|
5,277
|
|
4,986
|
|
4,891
|
|
5,030
|
|
5,047
|
Coal &
renewables
|
|
2,022
|
|
1,979
|
|
1,820
|
|
1,887
|
|
1,926
|
Bulk
|
|
3,219
|
|
3,099
|
|
2,964
|
|
3,139
|
|
3,104
|
Industrial chemicals
& plastics
|
|
3,205
|
|
3,086
|
|
3,154
|
|
3,125
|
|
3,144
|
Metals &
minerals
|
|
2,697
|
|
2,276
|
|
2,337
|
|
2,448
|
|
2,445
|
Forest
products
|
|
5,457
|
|
5,256
|
|
5,181
|
|
5,184
|
|
5,269
|
Energy &
specialized markets
|
|
3,866
|
|
3,739
|
|
3,742
|
|
3,747
|
|
3,780
|
Industrial
|
|
3,469
|
|
3,201
|
|
3,271
|
|
3,331
|
|
3,324
|
Automotive
|
|
2,525
|
|
2,388
|
|
2,368
|
|
2,399
|
|
2,427
|
Intermodal
[a]
|
|
1,307
|
|
1,241
|
|
1,238
|
|
1,284
|
|
1,267
|
Premium
|
|
1,583
|
|
1,354
|
|
1,454
|
|
1,497
|
|
1,476
|
Average
|
$
|
2,516
|
$
|
2,312
|
$
|
2,248
|
$
|
2,341
|
$
|
2,354
|
|
|
[a]
|
For intermodal
shipments, each container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
Adjusted
Debt / Adjusted EBITDA*
|
|
|
|
|
|
|
Millions, Except
Ratios
|
Dec.
31,
|
Dec.
31,
|
Dec.
31,
|
for the Twelve
Months Ended
|
2020
|
2019
|
2018
|
Net
income
|
$
|
5,349
|
$
|
5,919
|
$
|
5,966
|
Add:
|
|
|
|
|
|
|
Income tax
expense/(benefit)
|
|
1,631
|
|
1,828
|
|
1,775
|
Depreciation
|
|
2,210
|
|
2,216
|
|
2,191
|
Interest
expense
|
|
1,141
|
|
1,050
|
|
870
|
EBITDA
|
$
|
10,331
|
$
|
11,013
|
$
|
10,802
|
Adjustments:
|
|
|
|
|
|
|
Other
income
|
|
(287)
|
|
(243)
|
|
(94)
|
Interest on
operating lease liabilities**
|
|
59
|
|
68
|
|
84
|
Adjusted
EBITDA
|
$
|
10,103
|
$
|
10,838
|
$
|
10,792
|
Debt
|
$
|
26,729
|
$
|
25,200
|
$
|
22,391
|
Operating lease
liabilities***
|
|
1,604
|
|
1,833
|
|
2,271
|
Unfunded
pension and OPEB,
|
|
|
|
|
|
|
net of taxes of
$195, $124, and $135
|
|
637
|
|
400
|
|
456
|
Adjusted
debt
|
$
|
28,970
|
$
|
27,433
|
$
|
25,118
|
Adjusted debt /
Adjusted EBITDA
|
|
2.9
|
|
2.5
|
|
2.3
|
|
|
|
|
|
|
|
Comparable
Adjusted Debt / Adjusted EBITDA*
|
|
|
|
|
|
|
|
Dec.
31,
|
Dec.
31,
|
Dec.
31,
|
|
2020
|
2019
|
2018
|
Adjusted debt /
Adjusted EBITDA
|
|
2.9
|
|
2.5
|
|
2.3
|
Factors
Affecting Comparability:
|
|
|
|
|
|
|
Brazos yard impairment
[a]
|
|
(0.1)
|
|
N/A
|
|
N/A
|
Comparable
Adjusted Debt / Adjusted EBITDA*
|
2.8
|
2.5
|
2.3
|
|
|
[a]
|
Adjustments remove
the impact of $209 million from net income and $69 million from
income tax expense for the year ended December 31, 2020. See page
10 for a reconciliation to GAAP.
|
|
|
*
|
Total debt plus
operating lease liabilities plus after-tax unfunded pension and
OPEB obligation 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, 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, net income. The tables above
provide reconciliations from net income to adjusted debt to
adjusted EBITDA and comparable adjusted debt to adjusted EBITDA. At
December 31, 2020, 2019, and 2018, the incremental borrowing rate
on operating leases was 3.7%.
|
|
|
**
|
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.
|
|
|
***
|
Effective January 1,
2019, the Company adopted Accounting Standards Update No. 2016-02
(ASU 2016-02), Leases. ASU 2016-02 requires companies to
recognize lease assets and lease liabilities on the balance
sheet. Prior to adoption, the present value of operating
leases was used in this calculation.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
Average Common Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions,
Except Percentages
|
2020
|
2019
|
2018
|
Net
income
|
$
|
5,349
|
$
|
5,919
|
$
|
5,966
|
Average
equity
|
$
|
17,543
|
$
|
19,276
|
$
|
22,640
|
Return on
average common shareholders' equity
|
|
30.5%
|
|
30.7%
|
|
26.4%
|
|
|
|
|
|
|
|
Return on
Invested Capital as Adjusted (ROIC)*
|
|
|
|
|
|
|
|
|
|
|
Millions,
Except Percentages
|
2020
|
2019
|
2018
|
Net
income
|
$
|
5,349
|
$
|
5,919
|
$
|
5,966
|
Interest
expense
|
|
1,141
|
|
1,050
|
|
870
|
Interest on
average operating lease liabilities
|
|
64
|
|
76
|
|
82
|
Taxes on
interest
|
|
(282)
|
|
(266)
|
|
(218)
|
Net operating
profit after taxes as adjusted
|
$
|
6,272
|
$
|
6,779
|
$
|
6,700
|
Average
equity
|
$
|
17,543
|
$
|
19,276
|
$
|
22,640
|
Average
debt
|
|
25,965
|
|
23,796
|
|
19,668
|
Average
operating lease liabilities
|
|
1,719
|
|
2,052
|
|
2,206
|
Average
invested capital as adjusted
|
$
|
45,227
|
$
|
45,124
|
$
|
44,514
|
Return on
invested capital as adjusted
|
|
13.9%
|
|
15.0%
|
|
15.1%
|
|
|
|
|
|
|
|
Comparable
Return on Invested Capital as Adjusted (Comparable
ROIC)*
|
|
|
|
|
|
2020
|
2019
|
2018
|
Return on
invested capital as adjusted
|
|
13.9%
|
|
15.0%
|
|
15.1%
|
Factors
Affecting Comparability:
|
|
|
|
|
|
|
Brazos yard impairment
[a]
|
|
0.4
|
|
N/A
|
|
N/A
|
Comparable return on
invested capital as adjusted
|
14.3%
|
15.0%
|
15.1%
|
|
|
[a]
|
Adjustments remove
the impact of $209 million from both net income for the year ended
and shareholders' equity as of December 31, 2020. 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
criteria 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, 2020, 2019, and
2018, the incremental borrowing rate on operating leases was
3.7%.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Performance*
|
|
|
|
|
|
|
|
|
|
Millions,
Except Per Share Amounts and Percentages
|
|
Reported
results
|
|
Brazos
Yard
|
|
Adjusted
results
|
For the
Three Months Ended December 31, 2020
|
(GAAP)
|
Impairment
|
(non-GAAP)
|
Operating
expense
|
$
|
3,135
|
|
$
|
(278)
|
|
$
|
2,857
|
|
Operating
income
|
|
2,006
|
|
|
278
|
|
|
2,284
|
|
Income
taxes
|
|
413
|
|
|
69
|
|
|
482
|
|
Net
income
|
$
|
1,380
|
|
$
|
209
|
|
$
|
1,589
|
|
Diluted
EPS
|
$
|
2.05
|
|
$
|
0.31
|
|
$
|
2.36
|
|
Operating
ratio
|
|
61.0
|
%
|
|
(5.4)
|
pts
|
|
55.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Millions,
Except Per Share Amounts and Percentages
|
|
Reported
results
|
|
Brazos
Yard
|
|
Adjusted
results
|
|
(GAAP)
|
Impairment
|
(non-GAAP)
|
For the Year
Ended December 31, 2020
|
|
|
|
|
|
|
|
|
|
Operating
expense
|
$
|
11,699
|
|
$
|
(278)
|
|
$
|
11,421
|
|
Operating
income
|
|
7,834
|
|
|
278
|
|
|
8,112
|
|
Income
taxes
|
|
1,631
|
|
|
69
|
|
|
1,700
|
|
Net
income
|
$
|
5,349
|
|
$
|
209
|
|
$
|
5,558
|
|
Diluted
EPS
|
$
|
7.88
|
|
$
|
0.31
|
|
$
|
8.19
|
|
Operating
ratio
|
|
59.9
|
%
|
|
(1.4)
|
pts
|
|
58.5
|
%
|
As of
December 31, 2020
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
|
16,958
|
|
$
|
209
|
|
$
|
17,167
|
|
|
|
*
|
The above tables
reconcile our results for the three-months and year ended December
31, 2020, and as of December 31, 2020, to adjust results that
exclude the impact of certain items identified as affecting
comparability. We use adjusted operating expense, adjusted
operating income, adjusted income taxes, adjusted net income,
adjusted diluted earnings per share (EPS), 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, 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