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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 22, 2020 (October 22, 2020)

UNION PACIFIC CORPORATION

(Exact name of registrant as specified in its charter)

Utah

1-6075

13-2626465

(State or other jurisdiction

(Commission

(IRS Employer

of Incorporation)

File Number)

Identification No.)

1400 Douglas Street, Omaha, Nebraska

68179

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (402) 544-5000

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class

Trading Symbol

Name of each exchange on which registered

Common Stock (Par Value $2.50 per share)

UNP

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

¨

Item 2.02 Results of Operations and Financial Condition.

On October 22, 2020, Union Pacific Corporation issued a press release announcing its financial results for the quarter ended September 30, 2020. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.

99.1Press Release of Union Pacific Corporation, dated October 22, 2020, announcing its financial results for the quarter ended September 30, 2020.

104Cover Page Interactive Data File (embedded within the Inline XBRL document).


‎

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: October 22, 2020

UNION PACIFIC CORPORATION

By:

/s/ Jennifer L. Hamann

Jennifer L. Hamann

Executive Vice President and

Chief Financial Officer
Ex 991

Exhibit 99.1

 



Union Pacific Reports Third Quarter 2020 Results



FOR IMMEDIATE RELEASE



Omaha, Neb., October 22, 2020 – Union Pacific Corporation (NYSE: UNP) today reported 2020 third quarter net income of $1.4 billion, or $2.01 per diluted share. This compares to $1.6 billion, or $2.22 per diluted share, in the third quarter 2019.

“Our third quarter results represent another step in our company’s transformation.  We demonstrated our ability to efficiently adjust to a sharp rebound in volume, which increased 19% from the second quarter, while operating expenses, excluding fuel price changes, increased only 11% sequentially,” said Lance Fritz, Union Pacific chairman, president and chief executive officer. “The strong financial results and quality service product delivered in the quarter are a testament to the women and men of Union Pacific as they continue to exhibit their commitment and resilience through safe operations.”

   

Third Quarter Summary

Operating revenue of $4.9 billion was down 11% in third quarter 2020, compared to third quarter 2019. Third quarter business volumes, as measured by total revenue carloads, decreased 4% compared to 2019. Premium volumes increased compared to 2019, while industrial and bulk declined. In addition:



 

·

Quarterly freight revenue declined 11%, compared to third quarter 2019, as core pricing gains were more than offset by lower volumes, a less favorable business mix, and decreased fuel surcharge revenue.

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-2-

 

·

Union Pacific’s 58.7% operating ratio, an all-time quarterly record, improved 0.8 points compared to the third quarter 2019.  Lower fuel prices positively impacted the operating ratio by 100 basis points.

·

The $1.36 per gallon average quarterly diesel fuel price in third quarter 2020 was 35% lower than third quarter 2019.

·

Union Pacific’s reportable personal injury rate was 0.90 per 200,000 employee-hours for the first three quarters 2020, compared to 0.82 for the same period 2019.

·

Quarterly freight car velocity was 220 daily miles per car, a 3% improvement compared to third quarter 2019.

·

Quarterly locomotive productivity was 138 gross ton-miles per horsepower day, an all-time quarterly record and an 11% improvement compared to third quarter 2019.

·

Quarterly workforce productivity was 998 car miles per employee, an all-time quarterly record and a 13% improvement compared to third quarter 2019.

·

Average maximum train length was 8,984 feet, a 13% increase compared to third quarter 2019.

Summary of Third Quarter Freight Revenues

·

Bulk down 12%

·

Industrial down 18%

·

Premium down 1%

 

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-3-

 

2020 Outlook

“The results we are delivering, both operationally and financially, deepen our conviction that the changes we’re making to transform our railroad are on target and on track,” said Fritz. “An improved customer experience, coupled with a lower cost structure, is opening up new markets and opportunities to grow our business as we win with customers and convert more freight to rail.”

 

Third Quarter 2020 Earnings Conference Call

Union Pacific will webcast its third quarter 2020 earnings release presentation live at www.up.com/investor and via teleconference on Thursday, October 22, 2020 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.



Union Pacific Investor contact: Brad Stock at 402-544-4227 or bkstock@up.com

Union Pacific Media contact: Raquel Espinoza at 402-544-5034 or respinoza@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

-more-

 

 

-4-

 

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,

3rd Quarter

 

Year-to-Date

For the Periods Ended September 30,

 2020  2019 

%

 

 

 2020  2019 

%

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

     Freight revenues

$

 4,596 

$

 5,146  (11)

%

 

$

 13,448 

$

 15,392  (13)

%

     Other

 

 323 

 

 370  (13)

 

 

 

 944 

 

 1,104  (14)

 

Total operating revenues

 

 4,919 

 

 5,516  (11)

 

 

 

 14,392 

 

 16,496  (13)

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

     Compensation and benefits

 

 1,008 

 

 1,134  (11)

 

 

 

 2,972 

 

 3,484  (15)

 

     Depreciation

 

 555 

 

 557 

 -

 

 

 

 1,653 

 

 1,657 

 -

 

     Purchased services and materials

 

 508 

 

 574  (11)

 

 

 

 1,470 

 

 1,723  (15)

 

     Fuel

 

 301 

 

 504  (40)

 

 

 

 982 

 

 1,595  (38)

 

     Equipment and other rents

 

 217 

 

 236  (8)

 

 

 

 655 

 

 754  (13)

 

     Other

 

 299 

 

 277  8 

 

 

 

 832 

 

 829 

 -

 

Total operating expenses

 

 2,888 

 

 3,282  (12)

 

 

 

 8,564 

 

 10,042  (15)

 

Operating Income

 

 2,031 

 

 2,234  (9)

 

 

 

 5,828 

 

 6,454  (10)

 

     Other income

 

 37 

 

 53  (30)

 

 

 

 221 

 

 187  18 

 

     Interest expense

 

 (295)

 

 (266) 11 

 

 

 

 (862)

 

 (772) 12 

 

Income before income taxes

 

 1,773 

 

 2,021  (12)

 

 

 

 5,187 

 

 5,869  (12)

 

Income taxes

 

 (410)

 

 (466) (12)

 

 

 

 (1,218)

 

 (1,353) (10)

 

Net Income

$

 1,363 

$

 1,555  (12)

%

 

$

 3,969 

$

 4,516  (12)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

     Earnings per share - basic

$

 2.02 

$

 2.22  (9)

%

 

$

 5.85 

$

 6.39  (8)

%

     Earnings per share - diluted

$

 2.01 

$

 2.22  (9)

 

 

$

 5.83 

$

 6.36  (8)

 

     Weighted average number of shares - basic

 

 675.0 

 

 699.3  (3)

 

 

 

 679.0 

 

 707.2  (4)

 

     Weighted average number of shares - diluted

 

 676.8 

 

 701.9  (4)

 

 

 

 680.7 

 

 709.8  (4)

 

     Dividends declared per share

$

 0.97 

$

 0.97 

 -

 

 

$

 2.91 

$

 2.73  7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 58.7% 

 

 59.5%  (0.8)

pts

 

 

 59.5% 

 

 60.9%  (1.4)

pts

Effective Tax Rate

 

 23.1% 

 

 23.1% 

 -

pts

 

 

 23.5% 

 

 23.1%  0.4 

pts

1

 

 

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



3rd Quarter

 

Year-to-Date

For the Periods Ended September 30,

 2020  2019 

%

 

 

 2020  2019 

%

 

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

$

 695 

$

 704  (1)

%

 

$

 2,028 

$

 2,080  (3)

%

     Fertilizer

 

 157 

 

 161  (2)

 

 

 

 499 

 

 492  1 

 

     Food & refrigerated

 

 239 

 

 253  (6)

 

 

 

 694 

 

 767  (10)

 

     Coal & renewables

 

 387 

 

 564  (31)

 

 

 

 1,177 

 

 1,641  (28)

 

   Bulk

 

 1,478 

 

 1,682  (12)

 

 

 

 4,398 

 

 4,980  (12)

 

     Industrial chemicals & plastics

 

 454 

 

 494  (8)

 

 

 

 1,384 

 

 1,428  (3)

 

     Metals & minerals

 

 365 

 

 520  (30)

 

 

 

 1,202 

 

 1,613  (25)

 

     Forest products

 

 284 

 

 290  (2)

 

 

 

 853 

 

 878  (3)

 

     Energy & specialized markets

 

 464 

 

 598  (22)

 

 

 

 1,522 

 

 1,759  (13)

 

   Industrial

 

 1,567 

 

 1,902  (18)

 

 

 

 4,961 

 

 5,678  (13)

 

     Automotive

 

 481 

 

 542  (11)

 

 

 

 1,194 

 

 1,616  (26)

 

     Intermodal

 

 1,070 

 

 1,020  5 

 

 

 

 2,895 

 

 3,118  (7)

 

   Premium

 

 1,551 

 

 1,562  (1)

 

 

 

 4,089 

 

 4,734  (14)

 

Total

$

 4,596 

$

 5,146  (11)

%

 

$

 13,448 

 -

 15,392  (13)

%

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

 

 187 

 

 181  3 

%

 

 

 529 

 

 528 

 -

%

     Fertilizer

 

 50 

 

 48  4 

 

 

 

 149 

 

 145  3 

 

     Food & refrigerated

 

 48 

 

 48 

 -

 

 

 

 137 

 

 147  (7)

 

     Coal & renewables

 

 213 

 

 271  (21)

 

 

 

 607 

 

 771  (21)

 

   Bulk

 

 498 

 

 548  (9)

 

 

 

 1,422 

 

 1,591  (11)

 

     Industrial chemicals & plastics

 

 144 

 

 158  (9)

 

 

 

 439 

 

 463  (5)

 

     Metals & minerals

 

 156 

 

 200  (22)

 

 

 

 492 

 

 579  (15)

 

     Forest products

 

 55 

 

 55 

 -

 

 

 

 161 

 

 167  (4)

 

     Energy & specialized markets

 

 125 

 

 157  (20)

 

 

 

 402 

 

 460  (13)

 

   Industrial

 

 480 

 

 570  (16)

 

 

 

 1,494 

 

 1,669  (10)

 

     Automotive

 

 203 

 

 222  (9)

 

 

 

 490 

 

 650  (25)

 

     Intermodal [a]

 

 863 

 

 789  9 

 

 

 

 2,296 

 

 2,443  (6)

 

   Premium

 

 1,066 

 

 1,011  5 

 

 

 

 2,786 

 

 3,093  (10)

 

Total

 

 2,044 

 

 2,129  (4)

%

 

 

 5,702 

 

 6,353  (10)

%

Average Revenue per Car

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

$

 3,705 

$

 3,900  (5)

%

 

$

 3,832 

$

 3,939  (3)

%

     Fertilizer

 

 3,172 

 

 3,334  (5)

 

 

 

 3,361 

 

 3,391  (1)

 

     Food & refrigerated

 

 4,891 

 

 5,203  (6)

 

 

 

 5,053 

 

 5,211  (3)

 

     Coal & renewables

 

 1,820 

 

 2,082  (13)

 

 

 

 1,938 

 

 2,129  (9)

 

   Bulk

 

 2,964 

 

 3,068  (3)

 

 

 

 3,092 

 

 3,130  (1)

 

     Industrial chemicals & plastics

 

 3,154 

 

 3,131  1 

 

 

 

 3,150 

 

 3,087  2 

 

     Metals & minerals

 

 2,337 

 

 2,599  (10)

 

 

 

 2,444 

 

 2,785  (12)

 

     Forest products

 

 5,181 

 

 5,275  (2)

 

 

 

 5,300 

 

 5,249  1 

 

     Energy & specialized markets

 

 3,742 

 

 3,797  (1)

 

 

 

 3,791 

 

 3,822  (1)

 

   Industrial

 

 3,271 

 

 3,336  (2)

 

 

 

 3,321 

 

 3,402  (2)

 

     Automotive

 

 2,368 

 

 2,436  (3)

 

 

 

 2,438 

 

 2,485  (2)

 

     Intermodal [a]

 

 1,238 

 

 1,294  (4)

 

 

 

 1,261 

 

 1,276  (1)

 

   Premium

 

 1,454 

 

 1,545  (6)

 

 

 

 1,468 

 

 1,530  (4)

 

Average 

$

 2,248 

$

 2,417  (7)

%

 

$

 2,359 

$

 2,423  (3)

%



[a]

For intermodal shipments each container or trailer equals one carload.

2

 

 

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Financial Position (unaudited)







 

 

 

 

 

 

 

 

 

 

Sep. 30,

Dec. 31,

Millions, Except Percentages

2020  2019 

Assets

 

 

 

 

     Cash and cash equivalents

$

 2,601 

$

 831 

     Short-term investments

 

 60 

 

 60 

     Other current assets

 

 2,469 

 

 2,568 

     Investments

 

 2,071 

 

 2,050 

     Net properties

 

 54,375 

 

 53,916 

     Operating lease assets

 

 1,642 

 

 1,812 

     Other assets

 

 496 

 

 436 

Total assets

$

 63,714 

$

 61,673 

 

 

 

 

 

Liabilities and Common Shareholders' Equity

 

 

 

 

     Debt due within one year

$

 1,980 

$

 1,257 

     Other current liabilities

 

 2,861 

 

 3,094 

     Debt due after one year

 

 26,080 

 

 23,943 

     Operating lease liabilities

 

 1,293 

 

 1,471 

     Deferred income taxes

 

 12,328 

 

 11,992 

     Other long-term liabilities

 

 1,973 

 

 1,788 

Total liabilities

 

 46,515 

 

 43,545 

Total common shareholders' equity

 

 17,199 

 

 18,128 

Total liabilities and common shareholders' equity

$

 63,714 

$

 61,673 







3

 

 

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Cash Flows (unaudited)







 

 

 

 

 

 

 

 

 

Millions,

Year-to-Date

For the Periods Ended September 30,

 2020  2019 

Operating Activities

 

 

 

 

     Net income

$

 3,969 

$

 4,516 

     Depreciation

 

 1,653 

 

 1,657 

     Deferred income taxes

 

 327 

 

 297 

     Other - net

 

 44 

 

 (206)

Cash provided by operating activities

 

 5,993 

 

 6,264 

Investing Activities

 

 

 

 

     Capital investments

 

 (2,294)

 

 (2,495)

     Maturities of short-term investments

 

 106 

 

 120 

     Purchases of short-term investments

 

 (106)

 

 (110)

     Other - net

 

 213 

 

 (22)

Cash used in investing activities

 

 (2,081)

 

 (2,507)

Financing Activities

 

 

 

 

     Debt issued

 

 4,004 

 

 3,986 

     Share repurchase programs

 

 (2,956)

 

 (5,162)

     Dividends paid

 

 (1,974)

 

 (1,925)

     Debt repaid

 

 (832)

 

 (642)

     Debt Exchange

 

 (327)

 

 -

     Net issuance of commercial paper

 

 (2)

 

 (5)

     Other - net

 

 (63)

 

 (34)

Cash used in financing activities

 

 (2,150)

 

 (3,782)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

 1,762 

 

 (25)

Cash, cash equivalents, and restricted cash at beginning of year

 

 856 

 

 1,328 

Cash, Cash Equivalents, and Restricted Cash at End of Period

$

 2,618 

$

 1,303 

Free Cash Flow*

 

 

 

 

     Cash provided by operating activities

$

 5,993 

$

 6,264 

     Cash used in investing activities

 

 (2,081)

 

 (2,507)

     Dividends paid

 

 (1,974)

 

 (1,925)

Free cash flow

$

 1,938 

$

 1,832 



*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.



4

 

 

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Operating and Performance Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



3rd Quarter

 

Year-to-Date

For the Periods Ended September 30,

 2020 

 

 2019 

%

 

 

 2020 

 

 2019 

%

 

Operating/Performance Statistics 

 

 

 

 

 

 

 

 

 

 

 

     Freight car velocity (daily miles per car) [a]

 220 

 

 214  3 

%

 

 217 

 

 203  7 

%

     Average train speed (miles per hour) [a] *

 25.3 

 

 25.2 

 -

 

 

 25.8 

 

 24.8  4 

 

     Average terminal dwell time (hours) [a] *

 22.8 

 

 23.6  (3)

 

 

 22.8 

 

 25.3  (10)

 

     Locomotive productivity (GTMs per horsepower day)

 138 

 

 124  11 

 

 

 135 

 

 118  14 

 

     Gross ton-miles (GTMs) (millions)

 196,998 

 

 215,487  (9)

 

 

 568,921 

 

 645,815  (12)

 

     Train length (feet)

 8,984 

 

 7,924  13 

 

 

 8,676 

 

 7,618  14 

 

     Intermodal car trip plan compliance (%)

 77 

 

 81  (4)

pts

 

 81 

 

 72  9 

pts

     Manifest/Automotive car trip plan compliance (%)

 72 

 

 67  5 

pts

 

 70 

 

 63  7 

pts

     Workforce productivity (car miles per employee)

 998 

 

 883  13 

 

 

 920 

 

 853  8 

 

     Total employees (average)

 30,155 

 

 36,659  (18)

 

 

 31,362 

 

 38,456  (18)

 

 

 

 

 

 

 

 

 

 

 

 

 

Locomotive Fuel Statistics

 

 

 

 

 

 

 

 

 

 

 

     Average fuel price per gallon consumed

$1.36 

 

$       2.09 

 (35)

%

 

$       1.51 

 

$       2.13 

 (29)

%

     Fuel consumed in gallons (millions)

 213 

 

 232  (8)

 

 

 627 

 

 725  (14)

 

     Fuel consumption rate**

 1.084 

 

 1.075  1 

 

 

 1.103 

 

 1.122  (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Ton-Miles (Millions)

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

 18,035 

 

 16,545  9 

%

 

 50,388 

 

 49,966  1 

%

     Fertilizer

 2,932 

 

 2,737  7 

 

 

 9,092 

 

 8,722  4 

 

     Food & refrigerated

 4,614 

 

 4,679  (1)

 

 

 12,872 

 

 14,037  (8)

 

     Coal & renewables

 20,374 

 

 27,516  (26)

 

 

 58,567 

 

 78,700  (26)

 

   Bulk

 45,955 

 

 51,477  (11)

 

 

 130,919 

 

 151,425  (14)

 

     Industrial chemicals & plastics

 7,170 

 

 7,268  (1)

 

 

 20,630 

 

 21,295  (3)

 

     Metals & minerals

 6,536 

 

 9,224  (29)

 

 

 21,471 

 

 29,403  (27)

 

     Forest products

 5,882 

 

 5,784  2 

 

 

 17,321 

 

 17,711  (2)

 

     Energy & specialized markets

 8,005 

 

 11,381  (30)

 

 

 27,327 

 

 33,173  (18)

 

   Industrial

 27,593 

 

 33,657  (18)

 

 

 86,749 

 

 101,582  (15)

 

     Automotive

 4,269 

 

 4,757  (10)

 

 

 10,498 

 

 13,954  (25)

 

     Intermodal

 20,096 

 

 18,216  10 

 

 

 55,344 

 

 56,540  (2)

 

   Premium

 24,365 

 

 22,973  6 

 

 

 65,842 

 

 70,494  (7)

 

Total

 97,913 

 

 108,107  (9)

%

 

 283,510 

 

 323,501  (12)

%

 

 

 

 

 

 

 

 

 

 

 

 



[a]Prior years have been realigned 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. 



5

 

 

 

 

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 

Year-to-Date

Operating Revenues

 

 

 

 

 

 

 

 

     Freight revenues

$

 4,880 

$

 3,972 

$

 4,596 

$

 13,448 

     Other revenues

 

 349 

 

 272 

 

 323 

 

 944 

Total operating revenues

 

 5,229 

 

 4,244 

 

 4,919 

 

 14,392 

Operating Expenses

 

 

 

 

 

 

 

 

     Compensation and benefits

 

 1,059 

 

 905 

 

 1,008 

 

 2,972 

     Depreciation

 

 547 

 

 551 

 

 555 

 

 1,653 

     Purchased services and materials

 

 521 

 

 441 

 

 508 

 

 1,470 

     Fuel

 

 434 

 

 247 

 

 301 

 

 982 

     Equipment and other rents

 

 227 

 

 211 

 

 217 

 

 655 

     Other

 

 298 

 

 235 

 

 299 

 

 832 

Total operating expenses

 

 3,086 

 

 2,590 

 

 2,888 

 

 8,564 

Operating Income

 

 2,143 

 

 1,654 

 

 2,031 

 

 5,828 

     Other income

 

 53 

 

 131 

 

 37 

 

 221 

     Interest expense

 

 (278)

 

 (289)

 

 (295)

 

 (862)

Income before income taxes

 

 1,918 

 

 1,496 

 

 1,773 

 

 5,187 

Income taxes

 

 (444)

 

 (364)

 

 (410)

 

 (1,218)

Net Income

$

 1,474 

$

 1,132 

$

 1,363 

$

 3,969 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

     Earnings per share - basic

$

 2.15 

$

 1.67 

$

 2.02 

$

 5.85 

     Earnings per share - diluted

$

 2.15 

$

 1.67 

$

 2.01 

$

 5.83 

     Weighted average number of shares - basic

 

 684.3 

 

 677.7 

 

 675.0 

 

 679.0 

     Weighted average number of shares - diluted

 

 686.2 

 

 679.2 

 

 676.8 

 

 680.7 

     Dividends declared per share

$

 0.97 

$

 0.97 

$

 0.97 

$

 2.91 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 59.0% 

 

 61.0% 

 

 58.7% 

 

 59.5% 

Effective Tax Rate

 

 23.1% 

 

 24.3% 

 

 23.1% 

 

 23.5% 





6

 

 

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



2020



1st Qtr 

2nd Qtr 

3rd Qtr 

Year-to-Date

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

     Grain & grain products

$

 689 

$

 644 

$

 695 

$

 2,028 

     Fertilizer

 

 174 

 

 168 

 

 157 

 

 499 

     Food & refrigerated

 

 250 

 

 205 

 

 239 

 

 694 

     Coal & renewables

 

 421 

 

 369 

 

 387 

 

 1,177 

   Bulk

 

 1,534 

 

 1,386 

 

 1,478 

 

 4,398 

     Industrial chemicals & plastics

 

 495 

 

 435 

 

 454 

 

 1,384 

     Metals & minerals

 

 469 

 

 368 

 

 365 

 

 1,202 

     Forest products

 

 303 

 

 266 

 

 284 

 

 853 

     Energy & specialized markets

 

 627 

 

 431 

 

 464 

 

 1,522 

   Industrial

 

 1,894 

 

 1,500 

 

 1,567 

 

 4,961 

     Automotive

 

 524 

 

 189 

 

 481 

 

 1,194 

     Intermodal

 

 928 

 

 897 

 

 1,070 

 

 2,895 

   Premium

 

 1,452 

 

 1,086 

 

 1,551 

 

 4,089 

Total

$

 4,880 

$

 3,972 

$

 4,596 

$

 13,448 

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

     Grain & grain products

 

 175 

 

 167 

 

 187 

 

 529 

     Fertilizer

 

 46 

 

 53 

 

 50 

 

 149 

     Food & refrigerated

 

 48 

 

 41 

 

 48 

 

 137 

     Coal & renewables

 

 208 

 

 186 

 

 213 

 

 607 

   Bulk

 

 477 

 

 447 

 

 498 

 

 1,422 

     Industrial chemicals & plastics

 

 154 

 

 141 

 

 144 

 

 439 

     Metals & minerals

 

 174 

 

 162 

 

 156 

 

 492 

     Forest products

 

 56 

 

 50 

 

 55 

 

 161 

     Energy & specialized markets

 

 162 

 

 115 

 

 125 

 

 402 

   Industrial

 

 546 

 

 468 

 

 480 

 

 1,494 

     Automotive

 

 208 

 

 79 

 

 203 

 

 490 

     Intermodal [a]

 

 709 

 

 724 

 

 863 

 

 2,296 

   Premium

 

 917 

 

 803 

 

 1,066 

 

 2,786 

Total

 

 1,940 

 

 1,718 

 

 2,044 

 

 5,702 

Average Revenue per Car

 

 

 

 

 

 

 

 

     Grain & grain products

$

 3,940 

$

 3,861 

$

 3,705 

$

 3,832 

     Fertilizer

 

 3,768 

 

 3,181 

 

 3,172 

 

 3,361 

     Food & refrigerated

 

 5,277 

 

 4,986 

 

 4,891 

 

 5,053 

     Coal & renewables

 

 2,022 

 

 1,979 

 

 1,820 

 

 1,938 

   Bulk

 

 3,219 

 

 3,099 

 

 2,964 

 

 3,092 

     Industrial chemicals & plastics

 

 3,205 

 

 3,086 

 

 3,154 

 

 3,150 

     Metals & minerals

 

 2,697 

 

 2,276 

 

 2,337 

 

 2,444 

     Forest products

 

 5,457 

 

 5,256 

 

 5,181 

 

 5,300 

     Energy & specialized markets

 

 3,866 

 

 3,739 

 

 3,742 

 

 3,791 

   Industrial

 

 3,469 

 

 3,201 

 

 3,271 

 

 3,321 

     Automotive

 

 2,525 

 

 2,388 

 

 2,368 

 

 2,438 

     Intermodal [a]

 

 1,307 

 

 1,241 

 

 1,238 

 

 1,261 

   Premium

 

 1,583 

 

 1,354 

 

 1,454 

 

 1,468 

Average 

$

 2,516 

$

 2,312 

$

 2,248 

$

 2,359 



[a]For intermodal shipments each container or trailer equals one carload.

7

 

 

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP





Adjusted Debt / Adjusted EBITDA*





 

 

 

 



 

 

 

 

Millions, Except Ratios

Sep. 30,

Dec. 31,

for the Trailing Twelve Months Ended [a]

 2020  2019 

Net income

$

 5,372 

$

 5,919 

Add:

 

 

 

 

Income tax expense

 

 1,693 

 

 1,828 

Depreciation

 

 2,212 

 

 2,216 

Interest expense

 

 1,140 

 

 1,050 

EBITDA

$

 10,417 

$

 11,013 

Adjustments:

 

 

 

Other income

 

 (277)

 

 (243)

Interest on operating lease liabilities**

 

 59 

 

 68 

Adjusted EBITDA

$

 10,199 

$

 10,838 

Debt

$

 28,060 

$

 25,200 

Operating lease liabilities

 

 1,601 

 

 1,833 

Unfunded pension and OPEB,  net of taxes of $107 and $124

 

 349 

 

 400 

Adjusted debt

$

 30,010 

$

 27,433 

Adjusted debt / Adjusted EBITDA

 

 2.9 

 

 2.5 



[a]

The trailing twelve months income statement information ended September  30, 2020 is recalculated by taking the twelve months ended December 31, 2019, subtracting the nine months ended September 30, 2019, and adding the nine months ended September 30, 2020.







 

 

 

 



 

 

 

 

*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) is considered a non-GAAP financial measure 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 this measure is 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 should be considered in addition to, rather than as a substitute for, net income. The table above provides reconciliations from net income to adjusted debt to adjusted EBITDA. At both September 30, 2020 and December 31, 2019, the incremental borrowing rate on operating lease liabilities 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.

8