0000100885-21-000250 | 10-Q | XBRL Viewer

Foreign currency translation

$ 1,798

$ 1,132

$ 3,139

$ 2,606

Other comprehensive income/(loss):

Defined benefit plans

(61)

(7)

(56)

Total other comprehensive income/(loss)

^[1]

(43)

^[1]

^[2]

(16)

^[2]

Comprehensive income

$ 1,841

$ 1,089

$ 3,181

$ 2,590

[1]	Net of deferred taxes of ($10) million and ($5) million during the three months ended June 30, 2021 and 2020, respectively.
[2]	Net of deferred taxes of ($18) million and ($12) million during the six months ended June 30, 2021 and 2020, respectively.

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Amount after tax and reclassification adjustments of other comprehensive income (loss).

Shareholders' equity, beginning balance at Dec. 31, 2019

Condensed Consolidated Statements of Financial Position - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,115	$ 1,799
Short-term investments (Note 13)	46	60
Accounts receivable, net (Note 10)	1,666	1,505
Materials and supplies	688	638
Other current assets	249	212
Total current assets	3,764	4,214
Investments	2,277	2,164
Properties, net (Note 11)	54,148	54,161
Operating lease assets	1,635	1,610
Other assets	249	249
Total assets	62,073	62,398
Current liabilities:
Accounts payable and other current liabilities (Note 12)	3,247	3,104
Debt due within one year (Note 14)	1,110	1,069
Total current liabilities	4,357	4,173
Debt due after one year (Note 14)	27,702	25,660
Operating lease liabilities	1,256	1,283
Deferred income taxes	12,389	12,247
Other long-term liabilities	2,066	2,077
Commitments and contingencies (Note 15)
Total liabilities	47,770	45,440
Common shareholders' equity:
Common shares, $2.50 par value, 1,400,000,000 authorized; 1,112,456,322 and 1,112,227,784 issued; 652,954,892 and 671,351,360 outstanding, respectively	2,781	2,781
Paid-in-surplus	4,499	4,864
Retained earnings	53,116	51,326
Treasury stock	(44,542)	(40,420)
Accumulated other comprehensive loss (Note 9)	(1,551)	(1,593)
Total common shareholders' equity	14,303	16,958
Total liabilities and common shareholders' equity	$ 62,073	$ 62,398

Condensed Consolidated Statements of Cash Flows $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)
Operating Activities
Net income	$ 1,798	$ 3,139	$ 2,606
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	550	1,099	1,098
Deferred and other income taxes		128	171
Other operating activities, net		(128)	(9)
Changes in current assets and liabilities:
Accounts receivable, net		(161)	207
Materials and supplies		(50)	83
Other current assets		(3)	(36)
Accounts payable and other current liabilities		73	(197)
Income and other taxes		122	469
Cash provided by operating activities		4,219	4,392
Investing Activities
Capital investments		(1,190)	(1,599)
Proceeds from asset sales		101	107
Maturities of short-term investments (Note 13)		48	75
Purchases of short-term investments (Note 13)		(24)	(75)
Other investing activities, net		(6)	75
Cash used in investing activities		(1,071)	(1,417)
Financing Activities
Share repurchase programs (Note 16)		(4,085)	(2,556)
Debt issued (Note 14)		2,896	4,004
Dividends paid		(1,350)	(1,319)
Debt repaid		(691)	(770)
Debt exchange		(268)
Net issuance/(repayment) of commercial paper (Note 14)		125	(1)
Other financing activities, net		(34)	(65)
Cash used in financing activities		(3,807)	(1,107)
Net change in cash, cash equivalents, and restricted cash		(659)	1,868
Cash, cash equivalents, restricted cash, beginning balance		1,818	856
Cash, cash equivalents, restricted cash, ending balance	1,159	1,159	2,724
Non-cash investing and financing activities:
Capital investments accrued but not yet paid		104	141
Common shares repurchased but not yet paid	32	32
Cash (paid for)/received from:
Income taxes, net of refunds		(712)	(158)
Interest, net of amounts capitalized		(535)	(489)
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Statement of Financial Position
Cash and cash equivalents, at carry value	1,115	1,115	2,706
Cash, cash equivalents, restricted cash, ending balance	1,159	1,159	2,724
Accelerated Share Repurchase Agreement [Member]
Financing Activities
Share repurchase programs (Note 16)		(400)	(400)
Other Current Assets [Member]
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Statement of Financial Position
Restricted Cash and Cash Equivalents	32	32	6
Other Noncurrent Assets [Member]
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Statement of Financial Position
Restricted Cash and Cash Equivalents	$ 12	$ 12	$ 12

Condensed Consolidated Statements of Changes in Common Shareholders' Equity - USD ($)
$ in Millions

Common Shares [Member]

Paid-in-Surplus [Member]

Retained Earnings [Member]

Treasury Stock [Member]

Accumulated Other Comprehensive Income/(Loss) (Note 9) [Member]

^[1]

Total

$ 2,780

$ 4,523

$ 48,605

$ (36,424)

$ (1,356)

$ 18,128

Common shares, beginning balance at Dec. 31, 2019

1,112,000,000.0

(419,900,000)

Shareholders' equity, ending balance at Mar. 31, 2020

^[2]

(14,305,793)

$ 2,781

4,112

49,419

$ (38,992)

(1,329)

$ 15,991

Common shares, ending balance at Mar. 31, 2020

1,112,300,000

(433,700,000)

Shareholders' equity, beginning balance at Dec. 31, 2019

$ 2,780

4,523

48,605

$ (36,424)

(1,356)

18,128

Common shares, beginning balance at Dec. 31, 2019

1,112,000,000.0

(419,900,000)

2,606

Conversion, stock option exercises, forfeitures, and other

(16)

^[3]

$ 1

$ (4)

Conversion, stock option exercises, forfeitures, and other (shares)

300,000

600,000

Share repurchases (Note 16)

(400)

$ (2,556)

$ (2,956)

(14,300,000)

(14,305,793)

Shareholders' equity, ending balance at Jun. 30, 2020

(1,319)

$ (1,319)

$ 2,781

4,135

49,892

$ (38,984)

(1,372)

16,452

Common shares, ending balance at Jun. 30, 2020

1,112,300,000

(433,600,000)

Shareholders' equity, beginning balance at Mar. 31, 2020

$ 2,781

4,112

49,419

$ (38,992)

(1,329)

15,991

Common shares, beginning balance at Mar. 31, 2020

1,112,300,000

(433,700,000)

1,132

Conversion, stock option exercises, forfeitures, and other

(43)

^[4]

$ 8

Conversion, stock option exercises, forfeitures, and other (shares)

100,000

Shareholders' equity, ending balance at Jun. 30, 2020

(659)

$ 2,781

4,135

49,892

$ (38,984)

(1,372)

16,452

Common shares, ending balance at Jun. 30, 2020

1,112,300,000

(433,600,000)

Shareholders' equity, beginning balance at Dec. 31, 2020

$ 2,781

4,864

51,326

$ (40,420)

(1,593)

$ 16,958

Common shares, beginning balance at Dec. 31, 2020

1,112,200,000

(440,900,000)

671,351,360

Shareholders' equity, ending balance at Mar. 31, 2021

^[2]

(6,691,421)

$ 2,781

4,874

52,019

$ (41,826)

(1,594)

$ 16,254

Common shares, ending balance at Mar. 31, 2021

1,112,500,000

(447,400,000)

Shareholders' equity, beginning balance at Dec. 31, 2020

$ 2,781

4,864

51,326

$ (40,420)

(1,593)

$ 16,958

Common shares, beginning balance at Dec. 31, 2020

1,112,200,000

(440,900,000)

671,351,360

3,139

$ 3,139

Conversion, stock option exercises, forfeitures, and other

^[3]

$ (5)

Conversion, stock option exercises, forfeitures, and other (shares)

300,000

Share repurchases (Note 16)

(400)

$ (4,117)

$ (4,517)

(18,900,000)

(18,895,830)

Shareholders' equity, ending balance at Jun. 30, 2021

(1,349)

$ (1,349)

$ 2,781

4,499

53,116

$ (44,542)

(1,551)

$ 14,303

Common shares, ending balance at Jun. 30, 2021

1,112,500,000

(459,500,000)

652,954,892

Shareholders' equity, beginning balance at Mar. 31, 2021

$ 2,781

4,874

52,019

$ (41,826)

(1,594)

$ 16,254

Common shares, beginning balance at Mar. 31, 2021

1,112,500,000

(447,400,000)

1,798

Conversion, stock option exercises, forfeitures, and other

^[4]

$ (1)

Conversion, stock option exercises, forfeitures, and other (shares)

100,000

Share repurchases (Note 16)

(400)

$ (2,715)

$ (3,115)

(12,200,000)

(12,204,409)

^[5]

Shareholders' equity, ending balance at Jun. 30, 2021

(701)

$ (701)

$ 2,781

$ 4,499

$ 53,116

$ (44,542)

$ (1,551)

$ 14,303

Common shares, ending balance at Jun. 30, 2021

1,112,500,000

(459,500,000)

652,954,892

[1]	AOCI = Accumulated Other Comprehensive Income/Loss (Note 9)
[2]	Includes 8,786,380 shares repurchased in February 2020 under accelerated share repurchase programs.
[3]	Net of deferred taxes of ($18) million and ($12) million during the six months ended June 30, 2021 and 2020, respectively.
[4]	Net of deferred taxes of ($10) million and ($5) million during the three months ended June 30, 2021 and 2020, respectively.
[5]	Includes 7,209,156 shares repurchased in May 2021 under accelerated share repurchase programs.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Amount after tax and reclassification adjustments of other comprehensive income (loss).

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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Accounting Pronouncements [Abstract]

Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Accounting Pronouncements

2. Accounting Pronouncements

In December 2019, the FASB issued Accounting Standards Update No. 2019-12 (ASU 2019-12), Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting and disclosure requirements for income taxes by clarifying existing guidance to improve consistency in application of Accounting Standards Codification (ASC) 740. The Company adopted the ASU on January 1, 2021 (the effective date), and it did not have a material impact on the Company’s consolidated financial statements and related disclosures.

In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (ASU 2020-04), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP principles to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued due to reference rate reform. This guidance was effective beginning on March 12, 2020, and can be adopted on a prospective basis no later than December 31, 2022, with early adoption permitted. The Company is currently evaluating the effect that the new guidance will have on our consolidated financial statements and related disclosures.

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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Operations and Segmentation [Abstract]

Operations and Segmentation

6 Months Ended

Jun. 30, 2021

Operations and Segmentation

3. Operations and Segmentation

The Railroad, along with its subsidiaries and rail affiliates, is our one reportable operating segment. Although we provide and analyze revenue by three commodity groups, we treat the financial results of the Railroad as one segment due to the integrated nature of our rail network. Our operating revenues are primarily derived from contracts with customers for the transportation of freight from origin to destination.

The following table represents a disaggregation of our freight and other revenues:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2021		2020		2021		2020
Bulk	$	1,648	$	1,386	$	3,160	$	2,920
Industrial		1,859		1,500		3,515		3,394
Premium		1,625		1,086		3,106		2,538
Total freight revenues	$	5,132	$	3,972	$	9,781	$	8,852
Other subsidiary revenues		180		150		357		364
Accessorial revenues		176		103		337		220
Other		16		19		30		37
Total operating revenues	$	5,504	$	4,244	$	10,505	$	9,473

Although our revenues are principally derived from customers domiciled in the U.S., the ultimate points of origin or destination for some products we transport are outside the U.S. Each of our commodity groups includes revenue from shipments to and from Mexico. Included in the above table are freight revenues from our Mexico business which amounted to $618 million and $389 million, respectively, for the three months ended June 30, 2021 and 2020, and $1.2 billion and $972 million, respectively, for the six months ended June 30, 2021 and 2020.

Stock-based Compensation

6 Months Ended

Jun. 30, 2021

Stock-based compensation [Abstract]

Stock-based Compensation

4. Stock-Based Compensation

We have several stock-based compensation plans where employees receive nonvested stock options, nonvested retention shares, and nonvested stock units. We refer to the nonvested shares and stock units collectively as “retention awards”. We issue treasury shares to cover option exercises and stock unit vestings, while new shares are issued when retention shares are granted.

Information regarding stock-based compensation appears in the table below:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2021		2020		2021		2020
Stock-based compensation, before tax:
Stock options	$	4	$	4	$	8	$	8
Retention awards		18		14		34		32
Total stock-based compensation, before tax	$	22	$	18	$	42	$	40
Excess tax benefits from equity compensation plans	$	2	$	2	$	17	$	35

Stock Options – We estimate the fair value of our stock option awards using the Black-Scholes option pricing model. The table below shows the annual weighted-average assumptions used for valuation purposes:



Weighted-Average Assumptions	2021		2020
Risk-free interest rate		0.4%		1.5%
Dividend yield		1.9%		2.1%
Expected life (years)		4.6		4.9
Volatility		28.3%		23.4%
Weighted-average grant-date fair value of options granted	$	39.97	$	32.20

The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant; the expected dividend yield is calculated as the ratio of dividends paid per share of common stock to the stock price on the date of grant; the expected life is based on historical and expected exercise behavior; and expected volatility is based on the historical volatility of our stock price over the expected life of the option.

A summary of stock option activity during the six months ended June 30, 2021, is presented below:



	Options (thous.)	Weighted-Average ‎Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value (millions)
Outstanding at January 1, 2021	2,569	$	132.49	6.4	yrs.	$	195
Granted	387		204.45		N/A		N/A
Exercised	(341)		122.63		N/A		N/A
Forfeited or expired	(53)		152.07		N/A		N/A
Outstanding at June 30, 2021	2,562	$	144.27	6.5	yrs.	$	194
Vested or expected to vest at June 30, 2021	2,537	$	143.78	6.5	yrs.	$	193
Options exercisable at June 30, 2021	1,725	$	123.50	5.4	yrs.	$	166

Stock options are granted at the closing price on the date of grant, have 10 year contractual terms, and vest no later than 3 years from the date of grant. None of the stock options outstanding at June 30, 2021, are subject to performance or market-based vesting conditions.

At June 30, 2021, there was $22 million of unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 1.4 years. Additional information regarding stock option exercises appears in the following table:



	Three Months Ended				Six Months Ended
	June 30,				June 30,

Millions	2021		2020		2021		2020
Intrinsic value of stock options exercised	$	9	$	17	$	32	$	65
Cash received from option exercises		4		18		34		51
Treasury shares repurchased for employee taxes		(1)		(4)		(7)		(12)
Tax benefit realized from option exercises		2		3		6		14
Aggregate grant-date fair value of stock options vested		-		-		14		14

Retention Awards – The fair value of retention awards is based on the closing price of the stock on the grant date. Dividends and dividend equivalents are paid to participants during the vesting periods.

Changes in our retention awards during the six months ended June 30, 2021, were as follows:



	Shares ‎(thous.)	Weighted-Average ‎Grant-Date Fair Value
Nonvested at January 1, 2021	1,476	$	141.06
Granted	284		204.87
Vested	(410)		107.88
Forfeited	(39)		161.63
Nonvested at June 30, 2021	1,311	$	164.65

Retention awards are granted at no cost to the employee and vest over periods lasting up to 4 years. At June 30, 2021, there was $113 million of total unrecognized compensation expense related to nonvested retention awards, which is expected to be recognized over a weighted-average period of 1.9 years.

Performance Retention Awards – In February 2021, our Board of Directors approved performance stock unit grants. This plan is based on performance targets for annual return on invested capital (ROIC) and operating income growth (OIG) compared to companies in the S&P 100 Industries Index plus the Class I railroads. We define ROIC as net operating profit adjusted for interest expense (including interest on average operating lease liabilities) and taxes on interest divided by average invested capital adjusted for average operating lease liabilities.

The February 2021 stock units awarded to selected employees are subject to continued employment for 37 months, the attainment of certain levels of ROIC, and the relative three-year OIG. We expense two-thirds of the fair value of the units that are probable of being earned based on our forecasted ROIC over the 3-year performance period, and with respect to the third year of the plan, the remaining one-third of the fair value is subject to the relative three-year OIG. We measure the fair value of these performance stock units based upon the closing price of the underlying common stock as of the date of grant. Dividend equivalents are accumulated during the service period and paid to participants only after the units are earned.

Changes in our performance retention awards during the six months ended June 30, 2021, were as follows:



	Shares ‎(thous.)	Weighted-Average ‎Grant-Date Fair Value
Nonvested at January 1, 2021	773	$	148.17
Granted	227		204.45
Vested	(140)		129.60
Unearned	(150)		128.78
Forfeited	(28)		183.78
Nonvested at June 30, 2021	682	$	173.52

At June 30, 2021, there was $30 million of total unrecognized compensation expense related to nonvested performance retention awards, which is expected to be recognized over a weighted-average period of 1.8 years. This expense is subject to achievement of the performance measures established for the performance stock unit grants.

Retirement Plans

6 Months Ended

Jun. 30, 2021

Retirement Plans [Abstract]

Retirement Plans

5. Retirement Plans

Pension and Other Postretirement Benefits

Pension Plans – We provide defined benefit retirement income to eligible non-union employees through qualified and non-qualified (supplemental) pension plans. Qualified and non-qualified pension benefits are based on years of service and the highest compensation during the latest years of employment, with specific reductions made for early retirements. Non-union employees hired on or after January 1, 2018, are no longer eligible for pension benefits, but are eligible for an enhanced 401(k) plan.

Other Postretirement Benefits (OPEB) – We provide medical and life insurance benefits for eligible retirees hired before January 1, 2004. These benefits are funded as medical claims and life insurance premiums are paid.

Expense

Both pension and OPEB expense are determined based upon the annual service cost of benefits (the actuarial cost of benefits earned during a period) and the interest cost on those liabilities, less the expected return on plan assets. The expected long-term rate of return on plan assets is applied to a calculated value of plan assets that recognizes changes in fair value over a 5 year period. This practice is intended to reduce year-to-year volatility in pension expense, but it can have the effect of delaying the recognition of differences between actual returns on assets and expected returns based on long-term rate of return assumptions. Differences in actual experience in relation to assumptions are not recognized in net income immediately, but are deferred in accumulated other comprehensive income/loss and, if necessary, amortized as pension or OPEB expense.

‎

The components of our net periodic pension cost were as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2021		2020		2021		2020
Service cost	$	30	$	26	$	60	$	53
Interest cost		27		35		53		69
Expected return on plan assets		(68)		(70)		(135)		(140)
Amortization of actuarial loss		35		24		71		52
Net periodic pension cost	$	24	$	15	$	49	$	34

The components of our net periodic OPEB costs were as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2021		2020		2021		2020
Service cost	$	1	$	1	$	1	$	1
Interest cost		1		2		2		3
Amortization of:
Prior service cost/(credit)		(3)		(4)		(7)		(7)
Actuarial loss		1		2		3		4
Net periodic OPEB cost	$	-	$	1	$	(1)	$	1

Cash Contributions

For the six months ended June 30, 2021, cash contributions totaled $0 to the qualified pension plan. Any contributions made during 2021 will be based on cash generated from operations and financial market considerations. Our policy with respect to funding the qualified plans is to fund at least the minimum required by law and not more than the maximum amount deductible for tax purposes. At June 30, 2021, we do not have minimum cash funding requirements for 2021.

The entire disclosure for retirement benefits.

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Accumulated Other Comprehensive Income/(Loss) [Abstract]

Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

8. Earnings Per Share

The following table provides a reconciliation between basic and diluted earnings per share:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions, Except Per Share Amounts	2021		2020		2021		2020
Net income	$	1,798	$	1,132	$	3,139	$	2,606
Weighted-average number of shares outstanding:
Basic		658.5		677.7		663.1		681.0
Dilutive effect of stock options		0.8		0.7		0.8		0.8
Dilutive effect of retention shares and units		0.8		0.8		0.8		0.9
Diluted		660.1		679.2		664.7		682.7
Earnings per share – basic	$	2.73	$	1.67	$	4.73	$	3.83
Earnings per share – diluted	$	2.72	$	1.67	$	4.72	$	3.82
Stock options excluded as their inclusion would be anti-dilutive		0.4		1.0		0.3		0.8

Accumulated Other Comprehensive Income/(Loss)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income/(Loss)

9. Accumulated Other Comprehensive Income/Loss

Reclassifications out of accumulated other comprehensive income/loss for the three and six months ended June 30, 2021 and 2020, were as follows (net of tax):



Millions	Defined ‎benefit ‎plans		Foreign ‎currency ‎translation		Total
Balance at April 1, 2021	$	(1,356)	$	(238)	$	(1,594)
Other comprehensive income/(loss) before reclassifications		(1)		19		18
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		25		-		25
Net quarter-to-date other comprehensive income/(loss), ‎net of taxes of ($10) million		24		19		43
Balance at June 30, 2021	$	(1,332)	$	(219)	$	(1,551)

Balance at April 1, 2020	$	(1,128)	$	(201)	$	(1,329)
Other comprehensive income/(loss) before reclassifications		1		(61)		(60)
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		17		-		17
Net quarter-to-date other comprehensive income/(loss), ‎net of taxes of ($5) million		18		(61)		(43)
Balance at June 30, 2020	$	(1,110)	$	(262)	$	(1,372)

[a]The accumulated other comprehensive income/loss reclassification components are 1) prior service cost/credit and 2) net actuarial loss which are both included in the computation of net periodic pension cost. See Note 5 Retirement Plans for additional details.

‎



Millions	Defined ‎benefit ‎plans		Foreign ‎currency ‎translation		Total
Balance at January 1, 2021	$	(1,381)	$	(212)	$	(1,593)
Other comprehensive income/(loss) before reclassifications		(2)		(7)		(9)
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		51		-		51
Net year-to-date other comprehensive income/(loss), ‎net of taxes of ($18) million		49		(7)		42
Balance at June 30, 2021	$	(1,332)	$	(219)	$	(1,551)

Balance at January 1, 2020	$	(1,150)	$	(206)	$	(1,356)
Other comprehensive income/(loss) before reclassifications		3		(56)		(53)
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		37		-		37
Net year-to-date other comprehensive income/(loss), ‎net of taxes of ($12) million		40		(56)		(16)
Balance at June 30, 2020	$	(1,110)	$	(262)	$	(1,372)

Properties

6 Months Ended

Jun. 30, 2021

Properties [Abstract]

Properties

11. Properties

The following tables list the major categories of property and equipment as well as the weighted-average estimated useful life for each category (in years):



Millions, Except Estimated Useful Life			Accumulated		Net Book		Estimated
As of June 30, 2021	Cost		Depreciation		Value		Useful Life
Land	$	5,279	$	N/A	$	5,279	N/A
Road:
Rail and other track material		17,795		6,746		11,049	43
Ties		11,208		3,428		7,780	34
Ballast		5,997		1,808		4,189	34
Other roadway [a]		21,175		4,467		16,708	49
Total road		56,175		16,449		39,726	N/A
Equipment:
Locomotives		9,315		3,674		5,641	17
Freight cars		2,145		806		1,339	25
Work equipment and other		1,117		377		740	18
Total equipment		12,577		4,857		7,720	N/A
Technology and other		1,207		528		679	13
Construction in progress		744		-		744	N/A
Total	$	75,982	$	21,834	$	54,148	N/A



Millions, Except Estimated Useful Life			Accumulated		Net Book		Estimated
As of December 31, 2020	Cost		Depreciation		Value		Useful Life
Land	$	5,246	$	N/A	$	5,246	N/A
Road:
Rail and other track material		17,620		6,631		10,989	42
Ties		11,051		3,331		7,720	34
Ballast		5,926		1,753		4,173	34
Other roadway [a]		21,030		4,329		16,701	48
Total road		55,627		16,044		39,583	N/A
Equipment:
Locomotives		9,375		3,555		5,820	17
Freight cars		2,118		789		1,329	25
Work equipment and other		1,107		351		756	18
Total equipment		12,600		4,695		7,905	N/A
Technology and other		1,199		520		679	13
Construction in progress		748		-		748	N/A
Total	$	75,420	$	21,259	$	54,161	N/A

[a]Other roadway includes grading, bridges and tunnels, signals, buildings, and other road assets.

Debt

6 Months Ended

Jun. 30, 2021

Debt [Abstract]

Debt

14. Debt

Debt Exchange - On April 6, 2021, we exchanged approximately $1.7 billion of various outstanding notes and debentures due between 2028 and 2065 (Existing Notes) for $701 million of 2.891% notes due April 6, 2036 (New 2036 Notes) and $1.0 billion of 3.799% notes due April 6, 2071 (New 2071 Notes), plus cash consideration of approximately $257 million in addition to $14 million for accrued and unpaid interest on the Existing Notes. In accordance with ASC 470-50-40, Debt-Modifications and Extinguishments-Derecognition, this transaction was accounted for as a debt exchange, as the exchanged debt instruments are not considered to be substantially different. The cash consideration was recorded as an adjustment to the carrying value of debt, and the balance of the unamortized discount and issue costs from the Existing Notes is being amortized as an adjustment of interest expense over the terms of the new notes. No gain or loss was recognized as a result of the exchange. Costs related to the debt exchange that were payable to parties other than the debt holders totaled approximately $12 million and were included in interest expense during the quarter ended March 31, 2021.

Credit Facilities – At June 30, 2021, we had $2.0 billion of credit available under our revolving credit facility (the Facility), which is designated for general corporate purposes and can be used to support the issuance of commercial paper. Credit facility withdrawals totaled $0 during the six months ended June 30, 2021. Commitment fees and interest rates payable under the Facility are similar to fees and rates available to comparably rated, investment-grade borrowers. The Facility allows for borrowings at floating rates based

on LIBOR, plus a spread, depending upon credit ratings for our senior unsecured debt. The 5 year facility, set to expire on June 8, 2023, requires UPC to maintain a debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) coverage ratio.

The definition of debt used for purposes of calculating the debt-to-EBITDA coverage ratio includes, among other things, certain credit arrangements, finance leases, guarantees, unfunded and vested pension benefits under Title IV of ERISA, and unamortized debt discount and deferred debt issuance costs. At June 30, 2021, the Company was in compliance with the debt-to-EBITDA coverage ratio, which allows us to carry up to $38.9 billion of debt (as defined in the Facility), and we had $30.6 billion of debt (as defined in the Facility) outstanding at that date. The Facility does not include any other financial restrictions, credit rating triggers (other than rating-dependent pricing), or any other provision that could require us to post collateral. The Facility also includes a $150 million cross-default provision and a change-of-control provision.

During the six months ended June 30, 2021, we issued $945 million and repaid $820 million of commercial paper with maturities ranging from 7 to 48 days, and at June 30, 2021, we had $200 million of commercial paper outstanding. Our revolving credit facility can be used to support our outstanding commercial paper balances, and, unless we change the terms of our commercial paper program, our aggregate issuance of commercial paper will not exceed the amount of borrowings available under the Facility.

In May 2020, we entered into three bilateral revolving credit lines, totaling $600 million of available credit. During the six months ended June 30, 2021, we drew $0 and repaid $0. All three bilateral revolving credit lines matured by May 18, 2021.

Shelf Registration Statement and Significant New Borrowings – We filed an automatic shelf registration statement with the SEC that became effective on February 10, 2021. The Board of Directors authorized the issuance of up to $6 billion of debt securities, replacing the prior Board authorization in November 2019, which had $2.25 billion of authority remaining. Under our shelf registration, we may issue, from time to time, any combination of debt securities, preferred stock, common stock, or warrants for debt securities or preferred stock in one or more offerings.

During the six months ended June 30, 2021, we issued the following unsecured, fixed-rate debt securities

under our current shelf registration.



Date	Description of Securities
May 20, 2021	$850 million of 2.375% Notes due May 20, 2031
	$1.0 billion of 3.200% Notes due May 20, 2041
	$650 million of 3.550% Notes due May 20, 2061

We used the net proceeds from these offerings for general corporate purposes, including the repurchase of common stock pursuant to our share repurchase programs. These debt securities include change-of- control provisions. At June 30, 2021, we had remaining authority from the Board of Directors to issue up to $3.5 billion of debt securities under our shelf registration.

Receivables Securitization Facility – As of June 30, 2021, and December 31, 2020, we recorded $400 million and $0, respectively, of borrowings under our Receivables Facility as secured debt. (See further discussion of our receivables securitization facility in Note 10).

Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments And Contingencies [Abstract]

Commitments and Contingencies

15. Commitments and Contingencies

Asserted and Unasserted Claims – Various claims and lawsuits are pending against us and certain of our subsidiaries. We cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations, financial condition, or liquidity. To the extent possible, we have recorded a liability where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated. We do not expect that any known lawsuits, claims, environmental costs, commitments, contingent liabilities, or guarantees will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters.

Personal Injury – The cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year. We use an actuarial analysis to measure the expense and liability, including unasserted claims. The Federal Employers’ Liability Act (FELA) governs compensation for work-related accidents. Under FELA, damages are assessed based on a finding of fault through litigation or out-of-court settlements. We offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work.

Our personal injury liability is not discounted to present value due to the uncertainty surrounding the timing of future payments. Approximately 95% of the recorded liability is related to asserted claims and approximately 5% is related to unasserted claims at June 30, 2021. Because of the uncertainty surrounding the ultimate outcome of personal injury claims, it is reasonably possible that future costs to settle these claims may range from approximately $301 million to $330 million. We record an accrual at the low end of the range as no amount of loss within the range is more probable than any other. Estimates can vary over time due to evolving trends in litigation.

Our personal injury liability activity was as follows:



Millions,
for the Six Months Ended June 30,	2021		2020
Beginning balance	$	270	$	265
Current year accruals		45		34
Changes in estimates for prior years		17		(4)
Payments		(31)		(36)
Ending balance at June 30	$	301	$	259
Current portion, ending balance at June 30	$	62	$	65

Environmental Costs – We are subject to federal, state, and local environmental laws and regulations. We have identified 385 sites where we are or may be liable for remediation costs associated with alleged contamination or for violations of environmental requirements. This includes 28 sites that are the subject of actions taken by the U.S. government, 18 of which are currently on the Superfund National Priorities List. Certain federal legislation imposes joint and several liability for the remediation of identified sites; consequently, our ultimate environmental liability may include costs relating to activities of other parties, in addition to costs relating to our own activities at each site.

When we identify an environmental issue with respect to property owned, leased, or otherwise used in our business, we perform, with assistance of our consultants, environmental assessments on the property. We expense the cost of the assessments as incurred. We accrue the cost of remediation where our obligation is probable and such costs can be reasonably estimated. Our environmental liability is not discounted to present value due to the uncertainty surrounding the timing of future payments.

Our environmental liability activity was as follows:



Millions,
for the Six Months Ended June 30,	2021		2020
Beginning balance	$	233	$	227
Accruals		43		28
Payments		(26)		(27)
Ending balance at June 30	$	250	$	228
Current portion, ending balance at June 30	$	63	$	63

The environmental liability includes future costs for remediation and restoration of sites as well as ongoing monitoring costs, but excludes any anticipated recoveries from third parties. Cost estimates are based on information available for each site, financial viability of other potentially responsible parties, and existing technology, laws, and regulations. The ultimate liability for remediation is difficult to determine because of the number of potentially responsible parties, site-specific cost sharing arrangements with other potentially responsible parties, the degree of contamination by various wastes, the scarcity and quality of volumetric data related to many of the sites, and the speculative nature of remediation costs. Estimates of liability may

vary over time due to changes in federal, state, and local laws governing environmental remediation. Current obligations are not expected to have a material adverse effect on our consolidated results of operations, financial condition, or liquidity.

Insurance – The Company has a consolidated, wholly-owned captive insurance subsidiary (the captive), that provides insurance coverage for certain risks including FELA claims and property coverage which are subject to reinsurance. The captive entered into annual reinsurance treaty agreements that insure workers compensation, general liability, auto liability, and FELA risk. The captive cedes a portion of its FELA exposure through the treaty and assumes a proportionate share of the entire risk. The captive receives direct premiums, which are netted against the Company’s premium costs in other expenses in the Condensed Consolidated Statements of Income. The treaty agreements provide for certain protections against the risk of treaty participants’ non-performance, and we do not believe our exposure to treaty participants’ non-performance is material at this time. We record both liabilities and reinsurance receivables using an actuarial analysis based on historical experience in our Condensed Consolidated Statements of Financial Position. Effective January 2019, the captive insurance subsidiary no longer participates in the reinsurance treaty agreement. The Company established a trust in the fourth quarter of 2018 for the purpose of providing collateral as required under the reinsurance treaty agreement for prior years’ participation.

Indemnities – We are contingently obligated under a variety of indemnification arrangements, although in some cases the extent of our potential liability is limited, depending on the nature of the transactions and the agreements. Due to uncertainty as to whether claims will be made or how they will be resolved, we cannot reasonably determine the probability of an adverse claim or reasonably estimate any adverse liability or the total maximum exposure under these indemnification arrangements. We do not have any reason to believe that we will be required to make any material payments under these indemnity provisions.

Share Repurchase Program

6 Months Ended

Jun. 30, 2021

Share Repurchase Program [Abstract]

Share Repurchase Program

16. Share Repurchase Programs

Effective April 1, 2019, our Board of Directors authorized the repurchase of up to 150 million shares of our common stock by March 31, 2022. These repurchases may be made on the open market or through other transactions. Our management has sole discretion with respect to determining the timing and amount of these transactions. As of June 30, 2021, we repurchased a total of $45.0 billion of our common stock since commencement of our repurchase programs in 2007. The table below represents shares repurchased under repurchase programs in the first and second quarters of 2021 and 2020:



	Number of Shares Purchased		Average Price Paid [a]
	2021	2020	2021		2020
First quarter [b]	6,691,421	14,305,793	$	209.50	$	178.66
Second quarter [c]	12,204,409	-		222.46		-
Total	18,895,830	14,305,793	$	217.87	$	178.66
Remaining number of shares that may be repurchased under current authority				92,127,140

[a]In the period of the final settlement, the average price paid under the accelerated share repurchase programs is calculated based on the total program value less the value assigned to the initial delivery of shares. The average price of the completed 2020 accelerated share repurchase programs was $155.86. The average price of the initial settlement of the 2021 accelerated share repurchase programs was $221.94.

[b]Includes 8,786,380 shares repurchased in February 2020 under accelerated share repurchase programs.

[c]Includes 7,209,156 shares repurchased in May 2021 under accelerated share repurchase programs.

Management's assessments of market conditions and other pertinent factors guide the timing and volume of all repurchases. We expect to fund any share repurchases under this program through cash generated from operations, the sale or lease of various operating and non-operating properties, debt issuances, and cash on hand. Open market repurchases are recorded in treasury stock at cost, which includes any applicable commissions and fees.

From July 1, 2021, through July 21, 2021, we repurchased 1.1 million shares at an aggregate cost of approximately $237 million.

Accelerated Share Repurchase Programs – The Company has established accelerated share repurchase programs (ASRs) with financial institutions to repurchase shares of our common stock. These

ASRs have been structured so that at the time of commencement, we pay a specified amount to the financial institutions and receive an initial delivery of shares. Additional shares may be received at the time of settlement. The final number of shares to be received is based on the volume weighted average price of the Company’s common stock during the ASR term, less a discount and subject to potential adjustments pursuant to the terms of such ASR.

On May 26, 2021, the Company received 7,209,156 shares of its common stock repurchased under ASRs for an aggregate of $2.0 billion. When the shares were received, the exchange was accounted for as an equity transaction with $1.6 billion of the aggregate amount allocated to treasury stock and the remaining $0.4 billion allocated to paid-in-surplus. This delivery of shares represents the initial and likely minimum number of shares that we may receive under the ASRs initiated in 2021. The final settlement is expected to be completed prior to the end of the fourth quarter of 2021.

On February 19, 2020, the Company received 8,786,380 shares of its common stock repurchased under ASRs for an aggregate of $2.0 billion. Upon settlement of these ASRs in the third quarter of 2020, we received 4,045,575 additional shares.

ASRs are accounted for as equity transactions, and at the time of receipt, shares are included in treasury stock at fair market value as of the corresponding initiation or settlement date. The Company reflects shares received as a repurchase of common stock in the weighted average common shares outstanding calculation for basic and diluted earnings per share.

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Stock-based compensation [Abstract]

Stock-Based Compensation

Information regarding stock-based compensation appears in the table below:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2021		2020		2021		2020
Stock-based compensation, before tax:
Stock options	$	4	$	4	$	8	$	8
Retention awards		18		14		34		32
Total stock-based compensation, before tax	$	22	$	18	$	42	$	40
Excess tax benefits from equity compensation plans	$	2	$	2	$	17	$	35

Stock Options Weight Average Assumptions

The table below shows the annual weighted-average assumptions used for valuation purposes:



Weighted-Average Assumptions	2021		2020
Risk-free interest rate		0.4%		1.5%
Dividend yield		1.9%		2.1%
Expected life (years)		4.6		4.9
Volatility		28.3%		23.4%
Weighted-average grant-date fair value of options granted	$	39.97	$	32.20

Stock Options Activity

A summary of stock option activity during the six months ended June 30, 2021, is presented below:



	Options (thous.)	Weighted-Average ‎Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value (millions)
Outstanding at January 1, 2021	2,569	$	132.49	6.4	yrs.	$	195
Granted	387		204.45		N/A		N/A
Exercised	(341)		122.63		N/A		N/A
Forfeited or expired	(53)		152.07		N/A		N/A
Outstanding at June 30, 2021	2,562	$	144.27	6.5	yrs.	$	194
Vested or expected to vest at June 30, 2021	2,537	$	143.78	6.5	yrs.	$	193
Options exercisable at June 30, 2021	1,725	$	123.50	5.4	yrs.	$	166

Stock Option Exercises

Additional information regarding stock option exercises appears in the following table:



	Three Months Ended				Six Months Ended
	June 30,				June 30,

Millions	2021		2020		2021		2020
Intrinsic value of stock options exercised	$	9	$	17	$	32	$	65
Cash received from option exercises		4		18		34		51
Treasury shares repurchased for employee taxes		(1)		(4)		(7)		(12)
Tax benefit realized from option exercises		2		3		6		14
Aggregate grant-date fair value of stock options vested		-		-		14		14

Retention Awards Activity

Changes in our retention awards during the six months ended June 30, 2021, were as follows:



	Shares ‎(thous.)	Weighted-Average ‎Grant-Date Fair Value
Nonvested at January 1, 2021	1,476	$	141.06
Granted	284		204.87
Vested	(410)		107.88
Forfeited	(39)		161.63
Nonvested at June 30, 2021	1,311	$	164.65

Performance Based Units Activity

Changes in our performance retention awards during the six months ended June 30, 2021, were as follows:



	Shares ‎(thous.)	Weighted-Average ‎Grant-Date Fair Value
Nonvested at January 1, 2021	773	$	148.17
Granted	227		204.45
Vested	(140)		129.60
Unearned	(150)		128.78
Forfeited	(28)		183.78
Nonvested at June 30, 2021	682	$	173.52

Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Plans [Abstract]

Net Periodic Pension And OPEB Cost/(Benefit)

‎

The components of our net periodic pension cost were as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2021		2020		2021		2020
Service cost	$	30	$	26	$	60	$	53
Interest cost		27		35		53		69
Expected return on plan assets		(68)		(70)		(135)		(140)
Amortization of actuarial loss		35		24		71		52
Net periodic pension cost	$	24	$	15	$	49	$	34

The components of our net periodic OPEB costs were as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2021		2020		2021		2020
Service cost	$	1	$	1	$	1	$	1
Interest cost		1		2		2		3
Amortization of:
Prior service cost/(credit)		(3)		(4)		(7)		(7)
Actuarial loss		1		2		3		4
Net periodic OPEB cost	$	-	$	1	$	(1)	$	1

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

The following table provides a reconciliation between basic and diluted earnings per share:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions, Except Per Share Amounts	2021		2020		2021		2020
Net income	$	1,798	$	1,132	$	3,139	$	2,606
Weighted-average number of shares outstanding:
Basic		658.5		677.7		663.1		681.0
Dilutive effect of stock options		0.8		0.7		0.8		0.8
Dilutive effect of retention shares and units		0.8		0.8		0.8		0.9
Diluted		660.1		679.2		664.7		682.7
Earnings per share – basic	$	2.73	$	1.67	$	4.73	$	3.83
Earnings per share – diluted	$	2.72	$	1.67	$	4.72	$	3.82
Stock options excluded as their inclusion would be anti-dilutive		0.4		1.0		0.3		0.8

Accumulated Other Comprehensive Income/(Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income/(Loss) [Abstract]

After-Tax Components Of Accumulated Other Comprehensive Loss

Reclassifications out of accumulated other comprehensive income/loss for the three and six months ended June 30, 2021 and 2020, were as follows (net of tax):



Millions	Defined ‎benefit ‎plans		Foreign ‎currency ‎translation		Total
Balance at April 1, 2021	$	(1,356)	$	(238)	$	(1,594)
Other comprehensive income/(loss) before reclassifications		(1)		19		18
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		25		-		25
Net quarter-to-date other comprehensive income/(loss), ‎net of taxes of ($10) million		24		19		43
Balance at June 30, 2021	$	(1,332)	$	(219)	$	(1,551)

Balance at April 1, 2020	$	(1,128)	$	(201)	$	(1,329)
Other comprehensive income/(loss) before reclassifications		1		(61)		(60)
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		17		-		17
Net quarter-to-date other comprehensive income/(loss), ‎net of taxes of ($5) million		18		(61)		(43)
Balance at June 30, 2020	$	(1,110)	$	(262)	$	(1,372)

‎



Millions	Defined ‎benefit ‎plans		Foreign ‎currency ‎translation		Total
Balance at January 1, 2021	$	(1,381)	$	(212)	$	(1,593)
Other comprehensive income/(loss) before reclassifications		(2)		(7)		(9)
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		51		-		51
Net year-to-date other comprehensive income/(loss), ‎net of taxes of ($18) million		49		(7)		42
Balance at June 30, 2021	$	(1,332)	$	(219)	$	(1,551)

Balance at January 1, 2020	$	(1,150)	$	(206)	$	(1,356)
Other comprehensive income/(loss) before reclassifications		3		(56)		(53)
Amounts reclassified from accumulated other comprehensive income/(loss) [a]		37		-		37
Net year-to-date other comprehensive income/(loss), ‎net of taxes of ($12) million		40		(56)		(16)
Balance at June 30, 2020	$	(1,110)	$	(262)	$	(1,372)

Properties (Tables)

6 Months Ended

Jun. 30, 2021

Properties [Abstract]

Schedule Of Properties

The following tables list the major categories of property and equipment as well as the weighted-average estimated useful life for each category (in years):



Millions, Except Estimated Useful Life			Accumulated		Net Book		Estimated
As of June 30, 2021	Cost		Depreciation		Value		Useful Life
Land	$	5,279	$	N/A	$	5,279	N/A
Road:
Rail and other track material		17,795		6,746		11,049	43
Ties		11,208		3,428		7,780	34
Ballast		5,997		1,808		4,189	34
Other roadway [a]		21,175		4,467		16,708	49
Total road		56,175		16,449		39,726	N/A
Equipment:
Locomotives		9,315		3,674		5,641	17
Freight cars		2,145		806		1,339	25
Work equipment and other		1,117		377		740	18
Total equipment		12,577		4,857		7,720	N/A
Technology and other		1,207		528		679	13
Construction in progress		744		-		744	N/A
Total	$	75,982	$	21,834	$	54,148	N/A



Millions, Except Estimated Useful Life			Accumulated		Net Book		Estimated
As of December 31, 2020	Cost		Depreciation		Value		Useful Life
Land	$	5,246	$	N/A	$	5,246	N/A
Road:
Rail and other track material		17,620		6,631		10,989	42
Ties		11,051		3,331		7,720	34
Ballast		5,926		1,753		4,173	34
Other roadway [a]		21,030		4,329		16,701	48
Total road		55,627		16,044		39,583	N/A
Equipment:
Locomotives		9,375		3,555		5,820	17
Freight cars		2,118		789		1,329	25
Work equipment and other		1,107		351		756	18
Total equipment		12,600		4,695		7,905	N/A
Technology and other		1,199		520		679	13
Construction in progress		748		-		748	N/A
Total	$	75,420	$	21,259	$	54,161	N/A

[a]Other roadway includes grading, bridges and tunnels, signals, buildings, and other road assets.

Commitments And Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments And Contingencies [Abstract]

Commitments And Contingencies Activity

Our personal injury liability activity was as follows:



Millions,
for the Six Months Ended June 30,	2021		2020
Beginning balance	$	270	$	265
Current year accruals		45		34
Changes in estimates for prior years		17		(4)
Payments		(31)		(36)
Ending balance at June 30	$	301	$	259
Current portion, ending balance at June 30	$	62	$	65

Commitments And Contingencies Activity.

Our environmental liability activity was as follows:



Millions,
for the Six Months Ended June 30,	2021		2020
Beginning balance	$	233	$	227
Accruals		43		28
Payments		(26)		(27)
Ending balance at June 30	$	250	$	228
Current portion, ending balance at June 30	$	63	$	63

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Accumulated Other Comprehensive Income Loss [Line Items]

Operations and Segmentation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Commodity Group Information [Line Items]
Freight revenues	$ 5,132	$ 3,972	$ 9,781	$ 8,852
Subsidiary revenue	180	150	357	364
Accessorial revenues	176	103	337	220
Other revenues	16	19	30	37
Total operating revenues	5,504	4,244	10,505	9,473
Cargo and Freight [Member]
Commodity Group Information [Line Items]
Freight revenues	5,132	3,972	9,781	8,852
Bulk [Member]
Commodity Group Information [Line Items]
Freight revenues	1,648	1,386	3,160	2,920
Industrial [Member]
Commodity Group Information [Line Items]
Freight revenues	1,859	1,500	3,515	3,394
Premium [Member]
Commodity Group Information [Line Items]
Freight revenues	1,625	1,086	3,106	2,538
Mexico [Member]
Commodity Group Information [Line Items]
Freight revenues	$ 618	$ 389	$ 1,200	$ 972

Stock-based Compensation (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Stock Options [Member]
Schedule of Share-based Compensation Arrangements [Line Items]
Contractual term	10 years
Years until vest	3 years
Stock options, subject to performance or market-based vesting conditions	None
Unrecognized compensation expense	$ 22
Expected weighted average period (in years) of nonvested stock options to be recognized	1 year 4 months 24 days
Retention Awards [Member]
Schedule of Share-based Compensation Arrangements [Line Items]
Years until vest	4 years
Unrecognized compensation expense	$ 113
Expected weighted average period (in years) of nonvested stock options to be recognized	1 year 10 months 24 days
Performance Retention Awards [Member]
Schedule of Share-based Compensation Arrangements [Line Items]
Requisite service period	37 months
Contractual terms of award	We expense two-thirds of the fair value of the units that are probable of being earned based on our forecasted ROIC over the 3-year performance period, and with respect to the third year of the plan, the remaining one-third of the fair value is subject to the relative three-year OIG.
ROIC performance period	3 years
Unrecognized compensation expense	$ 30
Expected weighted average period (in years) of nonvested stock options to be recognized	1 year 9 months 18 days

Stock-based Compensation (Schedule of Stock Option Activities) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Stock Options [Member]
Stock Option Activity [Abstract]
Stock options, shares outstanding at January 1, 2021	2,569
Stock options, shares granted	387
Stock options, shares exercised	(341)
Stock options, shares forfeited or expired	(53)
Stock options, shares outstanding at June 30, 2021	2,562	2,569
Stock options, shares vested or expected to vest at June 30, 2021	2,537
Stock options, shares exercisable at June 30, 2021	1,725
Stock options weighted-average exercise price, outstanding at January 1, 2021	$ 132.49
Stock options weighted-average exercise price, granted	204.45
Stock options weighted-average exercise price, exercised	122.63
Stock options weighted-average exercise price, forfeited or expired	152.07
Stock options weighted-average exercise price, outstanding at June 30, 2021	144.27	$ 132.49
Stock options weighted-average exercise price, vested or expected to vest at June 30, 2021	143.78
Stock options weighted-average exercise price, options exercisable at June 30, 2021	$ 123.50
Stock options weighted-average remaining contractual term in years, outstanding at January 1, 2021	6 years 6 months	6 years 4 months 24 days
Stock options weighted-average remaining contractual term in years, outstanding at June 30, 2021	6 years 6 months	6 years 4 months 24 days
Stock options weighted-average remaining contractual term in years, vested or expected to vest at June 30, 2021	6 years 6 months
Stock options weighted-average remaining contractual term in years, options exercisable at June 30, 2021	5 years 4 months 24 days
Stock options aggregate intrinsic value, outstanding at January 1, 2021	$ 195
Stock options aggregate intrinsic value, outstanding at June 30, 2021	194	$ 195
Stock options aggregate intrinsic value, vested or expected to vest at June 30, 2021	193
Stock options aggregate intrinsic value, options exercisable at June 30, 2021	$ 166
Retention Awards [Member]
Awards Activity [Abstract]
Awards, shares nonvested at January 1, 2021	1,476
Awards, shares granted	284
Awards, shares vested	(410)
Awards, shares forfeited	(39)
Awards, shares nonvested at June 30, 2021	1,311	1,476
Awards weighted-average grant-date fair value, nonvested at January 1, 2021	$ 141.06
Awards weighted-average grant-date fair value, granted	204.87
Awards weighted-average grant-date fair value, vested	107.88
Awards weighted-average grant-date fair value, forfeited	161.63
Awards weighted-average grant-date fair value, nonvested at June 30, 2021	$ 164.65	$ 141.06
Performance Retention Awards [Member]
Awards Activity [Abstract]
Awards, shares nonvested at January 1, 2021	773
Awards, shares granted	227
Awards, shares vested	(140)
Awards, shares unearned	(150)
Awards, shares forfeited	(28)
Awards, shares nonvested at June 30, 2021	682	773
Awards weighted-average grant-date fair value, nonvested at January 1, 2021	$ 148.17
Awards weighted-average grant-date fair value, granted	204.45
Awards weighted-average grant-date fair value, vested	129.60
Awards weighted-average grant-date fair value, unearned	128.78
Awards weighted-average grant-date fair value, forfeited	183.78
Awards weighted-average grant-date fair value, nonvested at June 30, 2021	$ 173.52	$ 148.17

Retirement Plans (Details) - USD ($)	3 Months Ended		6 Months Ended
Retirement Plans (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Periodic Pension And OPEB Cost [Abstract]
Changes in fair value			5 years
Other comprehensive income defined benefit plans	$ (24,000,000)	$ (18,000,000)	$ (49,000,000)	$ (40,000,000)
Defined Benefit Plans [Member]
Net Periodic Pension And OPEB Cost [Abstract]
Service cost	30,000,000	26,000,000	60,000,000	53,000,000
Interest cost	27,000,000	35,000,000	53,000,000	69,000,000
Expected return on plan assets	(68,000,000)	(70,000,000)	(135,000,000)	(140,000,000)
Amortization of actuarial loss	35,000,000	24,000,000	71,000,000	52,000,000
Net periodic cost	24,000,000	15,000,000	49,000,000	34,000,000
Voluntary cash contributions to qualified pension plan			0
OPEB [Member]
Net Periodic Pension And OPEB Cost [Abstract]
Service cost	1,000,000	1,000,000	1,000,000	1,000,000
Interest cost	1,000,000	2,000,000	2,000,000	3,000,000
Amortization of prior service cost	(3,000,000)	(4,000,000)	(7,000,000)	(7,000,000)
Amortization of actuarial loss	$ 1,000,000	2,000,000	3,000,000	4,000,000
Net periodic cost		$ 1,000,000	$ (1,000,000)	$ 1,000,000

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share Details [Abstract]
Net income	$ 1,798	$ 1,132	$ 3,139	$ 2,606
Weighted-Average Number Of Shares Outstanding
Basic	658.5	677.7	663.1	681.0
Dilutive effect of stock options	0.8	0.7	0.8	0.8
Dilutive effect of retention shares and units	0.8	0.8	0.8	0.9
Diluted	660.1	679.2	664.7	682.7
Earnings per share - basic	$ 2.73	$ 1.67	$ 4.73	$ 3.83
Earnings per share - diluted	$ 2.72	$ 1.67	$ 4.72	$ 3.82
Stock options excluded as their inclusion would be anti-dilutive	0.4	1.0	0.3	0.8

Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Beginning balance

$ (1,594)

$ (1,329)

$ (1,593)

$ (1,356)

Other comprehensive income/(loss) before reclassifications

(60)

(9)

(53)

Amounts reclassified from accumulated other comprehensive income/(loss)

Net to-date other comprehensive income/(loss), net of taxes

^[1]

(43)

^[1]

^[2]

(16)

^[2]

Balance at June 30

(1,551)

(1,372)

(1,551)

(1,372)

Deferred taxes activity other comprehensive income/(loss)

(10)

(5)

(18)

(12)

Defined Benefit Plans [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Beginning balance

(1,356)

(1,128)

(1,381)

(1,150)

Other comprehensive income/(loss) before reclassifications

(1)

(2)

Amounts reclassified from accumulated other comprehensive income/(loss)

Net to-date other comprehensive income/(loss), net of taxes

Balance at June 30

(1,332)

(1,110)

(1,332)

(1,110)

Foreign Currency Translation [Member]

Accumulated Other Comprehensive Income Loss [Line Items]

Beginning balance

(238)

(201)

(212)

(206)

Other comprehensive income/(loss) before reclassifications

(61)

(7)

(56)

Net to-date other comprehensive income/(loss), net of taxes

(61)

(7)

(56)

Balance at June 30

$ (219)

$ (262)

$ (219)

$ (262)

[1]	Net of deferred taxes of ($10) million and ($5) million during the three months ended June 30, 2021 and 2020, respectively.
[2]	Net of deferred taxes of ($18) million and ($12) million during the six months ended June 30, 2021 and 2020, respectively.

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Amount after tax and reclassification adjustments of other comprehensive income (loss).

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

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Properties (Details) - USD ($)
$ in Millions

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

$ 75,982

$ 75,420

21,834

21,259

54,148

54,161

Land [Member]

5,279

5,246

Road: Rail and Other Track Material [Member]

5,279

5,246

17,795

17,620

6,746

6,631

$ 11,049

$ 10,989

43 years

42 years

Road: Ties [Member]

$ 11,208

$ 11,051

3,428

3,331

$ 7,780

$ 7,720

34 years

Road: Ballast [Member]

$ 5,997

$ 5,926

1,808

1,753

$ 4,189

$ 4,173

Road: Other Roadway [Member]

34 years

^[1]

$ 21,175

$ 21,030

^[1]

4,467

4,329

^[1]

$ 16,708

$ 16,701

^[1]

49 years

48 years

Total Road [Member]

$ 56,175

$ 55,627

16,449

16,044

Equipment: Locomotives [Member]

39,726

39,583

9,315

9,375

3,674

3,555

$ 5,641

$ 5,820

Equipment: Freight Cars [Member]

17 years

$ 2,145

$ 2,118

806

789

$ 1,339

$ 1,329

Equipment: Work Equipment and Other [Member]

25 years

$ 1,117

$ 1,107

377

351

$ 740

$ 756

18 years

Total Equipment [Member]

$ 12,577

$ 12,600

4,857

4,695

Technology and Other [Member]

7,720

7,905

1,207

1,199

528

520

$ 679

Construction in Progress [Member]

13 years

$ 744

$ 748