OMAHA, Neb., Jan. 21, 2016 /PRNewswire/ --
Fourth Quarter Results
- Diluted earnings per share of $1.31 declined 19 percent.
- Operating income totaled $1.9
billion, down 19 percent.
- Operating ratio of 63.2 percent, up 1.8 points.
Full Year 2015 Results
- Diluted earnings per share of $5.49 declined 5 percent.
- Operating income totaled $8.1
billion, down 8 percent.
- Operating ratio of 63.1 percent, improved 0.4
points.
Union Pacific Corporation (NYSE: UNP) today reported 2015 fourth
quarter net income of $1.1 billion,
or $1.31 per diluted share compared
to $1.4 billion, or $1.61 per diluted share, in the fourth quarter
2014.
"Total volumes decreased 9 percent in the quarter, more than
offsetting another quarter of solid core pricing gains," said
Lance Fritz, Union Pacific chairman,
president and chief executive officer. "On the cost side, we
continued to adjust resources throughout the quarter and also made
solid progress with our productivity initiatives. As a result
of these efforts, we achieved a quarterly operating ratio of 63.2
percent."
Fourth Quarter Summary
Operating revenue of $5.2 billion
was down 15 percent in the fourth quarter 2015 compared to the
fourth quarter 2014. Fourth quarter business volumes, as
measured by total revenue carloads, declined 9 percent compared to
2014. Volumes declined in each of the Company's business
groups with the exception of automotive. In addition:
- Quarterly freight revenue decreased 16 percent compared to the
fourth quarter 2014, as volume declines, lower fuel surcharge
revenue, and negative business mix more than offset core pricing
gains.
- Union Pacific's 63.2 percent operating ratio was unfavorable by
1.8 points compared to the fourth quarter 2014.
- The $1.61 per gallon average
quarterly diesel fuel price in the fourth quarter 2015 was 39
percent lower than the fourth quarter 2014.
- Quarterly train speed, as reported to the Association of
American Railroads, was 27.0 mph, 13 percent faster than the fourth
quarter 2014.
- The Company repurchased 6.6 million shares in the fourth
quarter 2015 at an aggregate cost of $586
million.
Summary of Fourth Quarter Freight Revenues
- Automotive up 1 percent
- Chemicals down 7 percent
- Agricultural Products down 12 percent
- Intermodal down 14 percent
- Industrial Products down 23 percent
- Coal down 31 percent
2015 Full Year Summary
For the full year 2015, Union Pacific reported net income of
$4.8 billion or $5.49 per diluted share versus $5.2 billion or $5.75 per diluted share in 2014, representing 8
and 5 percent decreases, respectively. Operating revenue
totaled $21.8 billion as compared to
$24.0 billion in 2014.
Operating income totaled $8.1
billion, an 8 percent decrease compared to 2014. In
addition:
- Freight revenue decreased to $20.4
billion, a 10 percent decrease when compared to 2014.
Carloadings were down 6 percent versus 2014, with declines in each
of the Company's business groups with the exception of
automotive.
- Average diesel fuel prices decreased 38 percent to $1.84 per gallon in 2015 from $2.97 per gallon in 2014.
- Union Pacific's operating ratio of 63.1 percent was a full year
record, improving 0.4 points from the previous record set in
2014.
- Train speed, as reported to the Association of American
Railroads, was 25.4 mph, 6 percent faster compared to the full year
2014.
- Union Pacific's reportable personal injury rate of 0.87
incidents per 200,000 employee-hours was a full year record,
improving 11 percent compared to the full year 2014.
- Union Pacific's capital program in 2015 totaled $4.3 billion, an increase of approximately
$200 million compared to the full
year 2014.
- The Company repurchased 35.3 million shares in 2015 at an
aggregate cost of almost $3.5
billion.
2016 Outlook
"This past year was a difficult one in many respects, but our
team did outstanding work in the face of dramatic declines in
volumes and shifts in our business mix," Fritz said. "Overall
economic conditions, uncertainty in the energy markets, commodity
prices, and the strength of the U.S. dollar will continue to have a
major impact on our business this year. However, we are
well-positioned to efficiently serve customers in existing markets
as they rebound. The strength and diversity of the Union
Pacific franchise also will provide tremendous opportunities for
new business development as both domestic and global markets
evolve. When combined with our unrelenting focus on safety,
productivity, and service, these opportunities will translate into
an excellent experience for our customers and strong value for our
shareholders in the years ahead."
Fourth Quarter 2015 Earnings Conference Call
Union Pacific will host its fourth quarter 2015 earnings release
presentation live over the Internet and via teleconference on
Thursday, January 21, 2016 at
8:45 a.m. Eastern Time. The
presentation will be webcast live over the internet on Union
Pacific's website at www.up.com/investor. Alternatively, the
webcast can be accessed directly through the following link.
Participants may join the conference call by dialing 877-407-8293
(or for international participants, 201/689-8349).
ABOUT UNION PACIFIC
Union Pacific Railroad is the principal operating company of
Union Pacific Corporation (NYSE: UNP). One of America's most
recognized companies, Union Pacific Railroad connects 23 states in
the western two-thirds of the country by rail, providing a critical
link in the global supply chain. From 2006-2015, Union Pacific
invested approximately $33 billion in
its network and operations to support America's transportation
infrastructure. The railroad's diversified business mix
includes Agricultural Products, Automotive, Chemicals, Coal,
Industrial Products and Intermodal. Union Pacific serves many
of the fastest-growing U.S. population centers, operates from all
major West Coast and Gulf Coast ports to eastern gateways, connects
with Canada's rail systems and is
the only railroad serving all six major Mexico gateways. Union Pacific provides value
to its roughly 10,000 customers by delivering products in a safe,
reliable, fuel-efficient and environmentally responsible
manner.
Supplemental financial information is attached.
This presentation 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;
and its ability to generate financial returns, improve network
performance and cost efficiency, and provide returns to its
shareholders. These statements are, or will be,
forward-looking statements as defined by the Securities Act of 1933
and the Securities Exchange Act of 1934. Forward-looking
statements also generally include, without limitation, information
or statements regarding: projections, predictions,
expectations, estimates or forecasts as to the Company's and its
subsidiaries' business, financial, and operational results, and
future economic performance; and management's beliefs,
expectations, goals, and objectives and other similar expressions
concerning matters that are not historical facts.
Forward-looking statements should not be read as a guarantee
of future performance or results, and will not necessarily be
accurate indications of the times that, or by which, such
performance or results will be achieved. Forward-looking
information, including expectations regarding operational and
financial improvements and the Company's future performance or
results are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the statement. Important factors, including risk
factors, could affect the Company's and its subsidiaries' future
results and could cause those results or other outcomes to differ
materially from those expressed or implied in the forward-looking
statements. Information regarding risk factors and other
cautionary information are available in the Company's Annual Report
on Form 10-K for 2014, which was filed with the SEC on February 6, 2015. The Company updates
information regarding risk factors if circumstances require such
updates in its periodic reports on Form 10-Q and its subsequent
Annual Reports on Form 10-K (or such other reports that may be
filed with the SEC).
Forward-looking statements speak only as of, and are based
only upon information available on, the date the statements were
made. The Company assumes no obligation to update
forward-looking information to reflect actual results, changes in
assumptions or changes in other factors affecting forward-looking
information. If the Company does update one or more
forward-looking statements, no inference should be drawn that the
Company will make additional updates with respect thereto or with
respect to other forward-looking statements. References to
our website are provided for convenience and, therefore,
information on or available through the website is not, and should
not be deemed to be, incorporated by reference herein.
|
UNION
PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
|
|
Condensed
Consolidated Statements of Income (unaudited)
|
|
|
Millions,
Except Per Share Amounts and Percentages,
|
4th
Quarter
|
|
Full
Year
|
|
For the Periods
Ended December 31,
|
2015
|
2014
|
%
|
|
|
2015
|
2014
|
%
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,863
|
$
|
5,794
|
(16)
|
%
|
|
$
|
20,397
|
$
|
22,560
|
(10)
|
%
|
|
Other
revenues
|
|
345
|
|
359
|
(4)
|
|
|
|
1,416
|
|
1,428
|
(1)
|
|
|
Total operating
revenues
|
|
5,208
|
|
6,153
|
(15)
|
|
|
|
21,813
|
|
23,988
|
(9)
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,220
|
|
1,289
|
(5)
|
|
|
|
5,161
|
|
5,076
|
2
|
|
|
Purchased services and
materials
|
|
589
|
|
665
|
(11)
|
|
|
|
2,421
|
|
2,558
|
(5)
|
|
|
Fuel
|
|
424
|
|
813
|
(48)
|
|
|
|
2,013
|
|
3,539
|
(43)
|
|
|
Depreciation
|
|
517
|
|
489
|
6
|
|
|
|
2,012
|
|
1,904
|
6
|
|
|
Equipment and other
rents
|
|
305
|
|
296
|
3
|
|
|
|
1,230
|
|
1,234
|
-
|
|
|
Other
|
|
235
|
|
228
|
3
|
|
|
|
924
|
|
924
|
-
|
|
|
Total operating
expenses
|
|
3,290
|
|
3,780
|
(13)
|
|
|
|
13,761
|
|
15,235
|
(10)
|
|
|
Operating
Income
|
|
1,918
|
|
2,373
|
(19)
|
|
|
|
8,052
|
|
8,753
|
(8)
|
|
|
Other
income
|
|
28
|
|
71
|
(61)
|
|
|
|
226
|
|
151
|
50
|
|
|
Interest
expense
|
|
(164)
|
|
(146)
|
12
|
|
|
|
(622)
|
|
(561)
|
11
|
|
|
Income before
income taxes
|
|
1,782
|
|
2,298
|
(22)
|
|
|
|
7,656
|
|
8,343
|
(8)
|
|
|
Income
taxes
|
|
(665)
|
|
(867)
|
(23)
|
|
|
|
(2,884)
|
|
(3,163)
|
(9)
|
|
|
Net
Income
|
$
|
1,117
|
$
|
1,431
|
(22)
|
%
|
|
$
|
4,772
|
$
|
5,180
|
(8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
1.31
|
$
|
1.62
|
(19)
|
%
|
|
$
|
5.51
|
$
|
5.77
|
(5)
|
%
|
|
Earnings per share -
diluted
|
$
|
1.31
|
$
|
1.61
|
(19)
|
|
|
$
|
5.49
|
$
|
5.75
|
(5)
|
|
|
Weighted average
number of shares - basic
|
|
850.6
|
|
885.7
|
(4)
|
|
|
|
866.2
|
|
897.1
|
(3)
|
|
|
Weighted average
number of shares - diluted
|
|
853.7
|
|
889.8
|
(4)
|
|
|
|
869.4
|
|
901.1
|
(4)
|
|
|
Dividends declared per
share
|
$
|
0.55
|
$
|
0.50
|
10
|
|
|
$
|
2.20
|
$
|
1.91
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
63.2%
|
|
61.4%
|
1.8
|
pts
|
|
|
63.1%
|
|
63.5%
|
(0.4)
|
pts
|
|
Effective
Tax Rate
|
|
37.3%
|
|
37.7%
|
(0.4)
|
pts
|
|
|
37.7%
|
|
37.9%
|
(0.2)
|
pts
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Freight Revenues
Statistics (unaudited)
|
|
|
4th
Quarter
|
|
Full
Year
|
|
For the Periods
Ended December 31,
|
2015
|
2014
|
%
|
|
|
2015
|
2014
|
%
|
|
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
895
|
$
|
1,018
|
(12)
|
%
|
|
$
|
3,581
|
$
|
3,777
|
(5)
|
%
|
|
Automotive
|
|
549
|
|
543
|
1
|
|
|
|
2,154
|
|
2,103
|
2
|
|
|
Chemicals
|
|
859
|
|
922
|
(7)
|
|
|
|
3,543
|
|
3,664
|
(3)
|
|
|
Coal
|
|
745
|
|
1,078
|
(31)
|
|
|
|
3,237
|
|
4,127
|
(22)
|
|
|
Industrial
Products
|
|
842
|
|
1,098
|
(23)
|
|
|
|
3,808
|
|
4,400
|
(13)
|
|
|
Intermodal
|
|
973
|
|
1,135
|
(14)
|
|
|
|
4,074
|
|
4,489
|
(9)
|
|
|
Total
|
$
|
4,863
|
$
|
5,794
|
(16)
|
%
|
|
$
|
20,397
|
$
|
22,560
|
(10)
|
%
|
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
|
239
|
|
252
|
(5)
|
%
|
|
|
941
|
|
973
|
(3)
|
%
|
|
Automotive
|
|
225
|
|
209
|
8
|
|
|
|
863
|
|
809
|
7
|
|
|
Chemicals
|
|
270
|
|
275
|
(2)
|
|
|
|
1,098
|
|
1,116
|
(2)
|
|
|
Coal
|
|
353
|
|
455
|
(22)
|
|
|
|
1,459
|
|
1,768
|
(17)
|
|
|
Industrial
Products
|
|
280
|
|
335
|
(16)
|
|
|
|
1,213
|
|
1,368
|
(11)
|
|
|
Intermodal*
|
|
836
|
|
898
|
(7)
|
|
|
|
3,488
|
|
3,591
|
(3)
|
|
|
Total
|
|
2,203
|
|
2,424
|
(9)
|
%
|
|
|
9,062
|
|
9,625
|
(6)
|
%
|
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
3,745
|
$
|
4,031
|
(7)
|
%
|
|
$
|
3,805
|
$
|
3,881
|
(2)
|
%
|
|
Automotive
|
|
2,447
|
|
2,607
|
(6)
|
|
|
|
2,498
|
|
2,602
|
(4)
|
|
|
Chemicals
|
|
3,188
|
|
3,344
|
(5)
|
|
|
|
3,227
|
|
3,282
|
(2)
|
|
|
Coal
|
|
2,107
|
|
2,366
|
(11)
|
|
|
|
2,218
|
|
2,334
|
(5)
|
|
|
Industrial
Products
|
|
3,004
|
|
3,283
|
(8)
|
|
|
|
3,139
|
|
3,217
|
(2)
|
|
|
Intermodal*
|
|
1,165
|
|
1,265
|
(8)
|
|
|
|
1,168
|
|
1,250
|
(7)
|
|
|
Average
|
$
|
2,208
|
$
|
2,390
|
(8)
|
%
|
|
$
|
2,251
|
$
|
2,344
|
(4)
|
%
|
|
|
|
*
|
Each intermodal
container or trailer equals one carload.
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Condensed
Consolidated Statements of Financial Position
(unaudited)
|
|
|
Dec.
31,
|
Dec.
31,
|
|
Millions,
Except Percentages
|
2015
|
2014
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,391
|
$
|
1,586
|
|
Other current
assets*
|
|
2,739
|
|
2,815
|
|
Investments
|
|
1,410
|
|
1,390
|
|
Net
properties
|
|
48,866
|
|
46,272
|
|
Other
assets*
|
|
194
|
|
309
|
|
Total
assets
|
$
|
54,600
|
$
|
52,372
|
|
|
|
|
|
|
Liabilities
and Common Shareholders' Equity
|
|
|
|
|
|
Debt due within one
year
|
$
|
594
|
$
|
461
|
|
Other current
liabilities
|
|
2,612
|
|
3,303
|
|
Debt due after one
year*
|
|
13,607
|
|
10,952
|
|
Deferred income
taxes*
|
|
15,241
|
|
14,403
|
|
Other long-term
liabilities
|
|
1,844
|
|
2,064
|
|
Total
liabilities
|
|
33,898
|
|
31,183
|
|
Total common
shareholders' equity
|
|
20,702
|
|
21,189
|
|
Total
liabilities and common shareholders' equity
|
$
|
54,600
|
$
|
52,372
|
|
|
|
|
|
|
Debt to
Capital
|
|
40.7%
|
|
35.0%
|
|
Adjusted
Debt to Capital**
|
|
45.7%
|
|
41.2%
|
|
Return on
Invested Capital**
|
|
14.3%
|
|
16.2%
|
|
|
|
*
|
Certain prior period
amounts have been adjusted for the retrospective adoption of
Accounting Standard Updates 2015-03 and 2015-17 related to the
presentation of deferred debt issuance costs and current deferred
taxes.
|
|
|
|
**
|
Adjusted Debt to
Capital and Return on Invested Capital are non-GAAP measures;
however, management believes that they are important measures in
evaluating our financial performance. See pages 8 and 9 for a
reconciliation to GAAP.
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Condensed
Consolidated Statements of Cash Flows (unaudited)
|
|
|
Millions,
|
Full
Year
|
|
For the
Periods Ended December 31,
|
2015
|
2014
|
|
Operating
Activities
|
|
|
|
|
|
Net income
|
$
|
4,772
|
$
|
5,180
|
|
Depreciation
|
|
2,012
|
|
1,904
|
|
Deferred income
taxes
|
|
765
|
|
895
|
|
Other - net
|
|
(205)
|
|
(594)
|
|
Cash provided
by operating activities
|
|
7,344
|
|
7,385
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Capital
investments*
|
|
(4,650)
|
|
(4,346)
|
|
Other - net
|
|
174
|
|
97
|
|
Cash used in
investing activities
|
|
(4,476)
|
|
(4,249)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Common shares
repurchased
|
|
(3,465)
|
|
(3,225)
|
|
Debt issued
|
|
3,328
|
|
2,588
|
|
Dividends
paid**
|
|
(2,344)
|
|
(1,632)
|
|
Debt repaid
|
|
(556)
|
|
(710)
|
|
Other - net
|
|
(26)
|
|
(3)
|
|
Cash used in
financing activities
|
|
(3,063)
|
|
(2,982)
|
|
|
|
|
|
|
Net Change
in Cash and Cash Equivalents
|
|
(195)
|
|
154
|
|
Cash and cash
equivalents at beginning of year
|
|
1,586
|
|
1,432
|
|
Cash and
Cash Equivalents at End of Year
|
$
|
1,391
|
$
|
1,586
|
|
|
|
|
|
|
Free Cash
Flow***
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
7,344
|
$
|
7,385
|
|
Cash used in investing
activities
|
|
(4,476)
|
|
(4,249)
|
|
Dividends
paid**
|
|
(2,344)
|
|
(1,632)
|
|
Free cash
flow
|
$
|
524
|
$
|
1,504
|
|
|
|
*
|
Capital investments
include $327 million of locomotive and freight car early lease
buyouts.
|
|
|
|
**
|
The 2015 dividends
paid amount includes the fourth quarter 2014 dividend of $438
million, which was paid on January 2, 2015, the first quarter 2015
dividend of $484 million, which was paid on March 30, 2015, the
second quarter 2015 dividend of $479 million, which was paid on
June 30, 2015, the third quarter 2015 dividend of $476 million,
which was paid on September 30, 2015, as well as the fourth quarter
2015 dividend of $467 million, which was paid on December 30, 2015.
Beginning in 2015, the timing of the dividend declaration and
payable dates was aligned to occur within the same
quarter.
|
|
|
|
***
|
Free cash flow is a
non-GAAP measure; however, we believe this measure is important to
management and investors in evaluating our financial performance
and measures our ability to generate cash without additional
external financing.
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Operating and
Performance Statistics (unaudited)
|
|
|
4th
Quarter
|
|
Full
Year
|
|
For the Periods
Ended December 31,
|
2015
|
2014
|
%
|
|
|
2015
|
2014
|
%
|
|
|
Operating/Performance
Statistics
|
|
|
|
|
|
|
|
|
|
|
Gross ton-miles (GTMs)
(millions)
|
224,855
|
262,267
|
(14)
|
%
|
|
927,677
|
1,014,905
|
(9)
|
%
|
|
Employees
(average)
|
44,490
|
48,037
|
(7)
|
|
|
47,457
|
47,201
|
1
|
|
|
GTMs (millions) per
employee
|
5.05
|
5.46
|
(8)
|
|
|
19.55
|
21.50
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
Locomotive
Fuel Statistics
|
|
|
|
|
|
|
|
|
|
|
Average fuel price per
gallon consumed
|
$ 1.61
|
$
2.66
|
(39)
|
%
|
|
$ 1.84
|
$
2.97
|
(38)
|
%
|
|
Fuel consumed in
gallons (millions)
|
257
|
298
|
(14)
|
|
|
1,064
|
1,158
|
(8)
|
|
|
Fuel consumption
rate*
|
1.143
|
1.135
|
1
|
|
|
1.147
|
1.141
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
AAR Reported
Performance Measures
|
|
|
|
|
|
|
|
|
|
|
Average train speed
(miles per hour)
|
27.0
|
23.8
|
13
|
%
|
|
25.4
|
24.0
|
6
|
%
|
|
Average terminal dwell
time (hours)
|
29.4
|
31.0
|
(5)
|
|
|
29.3
|
30.3
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Ton-Miles (Millions)
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
22,695
|
24,910
|
(9)
|
%
|
|
89,053
|
94,273
|
(6)
|
%
|
|
Automotive
|
4,704
|
4,316
|
9
|
|
|
18,193
|
16,797
|
8
|
|
|
Chemicals
|
17,124
|
18,696
|
(8)
|
|
|
71,707
|
75,519
|
(5)
|
|
|
Coal
|
35,953
|
50,443
|
(29)
|
|
|
151,110
|
191,359
|
(21)
|
|
|
Industrial
Products
|
17,120
|
22,178
|
(23)
|
|
|
75,902
|
88,054
|
(14)
|
|
|
Intermodal
|
19,122
|
21,175
|
(10)
|
|
|
79,070
|
83,627
|
(5)
|
|
|
Total
|
116,718
|
141,718
|
(18)
|
%
|
|
485,035
|
549,629
|
(12)
|
%
|
|
|
|
*
|
Fuel consumption is
computed as follows: gallons of fuel consumed divided by gross
ton-miles in thousands.
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Condensed
Consolidated Statements of Income (unaudited)
|
|
|
2015
|
|
Millions,
Except Per Share Amounts and Percentages,
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
5,251
|
$
|
5,068
|
$
|
5,215
|
$
|
4,863
|
$
|
20,397
|
|
Other
revenues
|
|
363
|
|
361
|
|
347
|
|
345
|
|
1,416
|
|
Total operating
revenues
|
|
5,614
|
|
5,429
|
|
5,562
|
|
5,208
|
|
21,813
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,369
|
|
1,305
|
|
1,267
|
|
1,220
|
|
5,161
|
|
Purchased services and
materials
|
|
643
|
|
600
|
|
589
|
|
589
|
|
2,421
|
|
Fuel
|
|
564
|
|
541
|
|
484
|
|
424
|
|
2,013
|
|
Depreciation
|
|
491
|
|
497
|
|
507
|
|
517
|
|
2,012
|
|
Equipment and other
rents
|
|
311
|
|
312
|
|
302
|
|
305
|
|
1,230
|
|
Other
|
|
259
|
|
225
|
|
205
|
|
235
|
|
924
|
|
Total operating
expenses
|
|
3,637
|
|
3,480
|
|
3,354
|
|
3,290
|
|
13,761
|
|
Operating
Income
|
|
1,977
|
|
1,949
|
|
2,208
|
|
1,918
|
|
8,052
|
|
Other
income
|
|
26
|
|
142
|
|
30
|
|
28
|
|
226
|
|
Interest
expense
|
|
(148)
|
|
(153)
|
|
(157)
|
|
(164)
|
|
(622)
|
|
Income before
income taxes
|
|
1,855
|
|
1,938
|
|
2,081
|
|
1,782
|
|
7,656
|
|
Income
taxes
|
|
(704)
|
|
(734)
|
|
(781)
|
|
(665)
|
|
(2,884)
|
|
Net
Income
|
$
|
1,151
|
$
|
1,204
|
$
|
1,300
|
$
|
1,117
|
$
|
4,772
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
1.31
|
$
|
1.38
|
$
|
1.51
|
$
|
1.31
|
$
|
5.51
|
|
Earnings per share -
diluted
|
$
|
1.30
|
$
|
1.38
|
$
|
1.50
|
$
|
1.31
|
$
|
5.49
|
|
Weighted average
number of shares - basic
|
|
879.3
|
|
872.2
|
|
862.9
|
|
850.6
|
|
866.2
|
|
Weighted average
number of shares - diluted
|
|
882.8
|
|
875.2
|
|
865.8
|
|
853.7
|
|
869.4
|
|
Dividends declared per
share
|
$
|
0.55
|
$
|
0.55
|
$
|
0.55
|
$
|
0.55
|
$
|
2.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
64.8%
|
|
64.1%
|
|
60.3%
|
|
63.2%
|
|
63.1%
|
|
Effective
Tax Rate
|
|
38.0%
|
|
37.9%
|
|
37.5%
|
|
37.3%
|
|
37.7%
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Freight Revenues
Statistics (unaudited)
|
|
|
2015
|
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
939
|
$
|
867
|
$
|
880
|
$
|
895
|
$
|
3,581
|
|
Automotive
|
|
516
|
|
560
|
|
529
|
|
549
|
|
2,154
|
|
Chemicals
|
|
897
|
|
905
|
|
882
|
|
859
|
|
3,543
|
|
Coal
|
|
915
|
|
679
|
|
898
|
|
745
|
|
3,237
|
|
Industrial
Products
|
|
1,017
|
|
970
|
|
979
|
|
842
|
|
3,808
|
|
Intermodal
|
|
967
|
|
1,087
|
|
1,047
|
|
973
|
|
4,074
|
|
Total
|
$
|
5,251
|
$
|
5,068
|
$
|
5,215
|
$
|
4,863
|
$
|
20,397
|
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
|
245
|
|
225
|
|
232
|
|
239
|
|
941
|
|
Automotive
|
|
202
|
|
222
|
|
214
|
|
225
|
|
863
|
|
Chemicals
|
|
267
|
|
283
|
|
278
|
|
270
|
|
1,098
|
|
Coal
|
|
399
|
|
309
|
|
398
|
|
353
|
|
1,459
|
|
Industrial
Products
|
|
306
|
|
308
|
|
319
|
|
280
|
|
1,213
|
|
Intermodal*
|
|
812
|
|
942
|
|
898
|
|
836
|
|
3,488
|
|
Total
|
|
2,231
|
|
2,289
|
|
2,339
|
|
2,203
|
|
9,062
|
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
3,838
|
$
|
3,844
|
$
|
3,793
|
$
|
3,745
|
$
|
3,805
|
|
Automotive
|
|
2,553
|
|
2,528
|
|
2,469
|
|
2,447
|
|
2,498
|
|
Chemicals
|
|
3,362
|
|
3,197
|
|
3,165
|
|
3,188
|
|
3,227
|
|
Coal
|
|
2,293
|
|
2,197
|
|
2,259
|
|
2,107
|
|
2,218
|
|
Industrial
Products
|
|
3,325
|
|
3,144
|
|
3,073
|
|
3,004
|
|
3,139
|
|
Intermodal*
|
|
1,191
|
|
1,154
|
|
1,166
|
|
1,165
|
|
1,168
|
|
Average
|
$
|
2,354
|
$
|
2,213
|
$
|
2,229
|
$
|
2,208
|
$
|
2,251
|
|
|
|
*
|
Each intermodal
container or trailer equals one carload.
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Non-GAAP Measures
Reconciliation to GAAP
|
|
|
Debt to
Capital*
|
|
|
|
|
|
Dec.
31,
|
Dec.
31,
|
|
Millions,
Except Percentages
|
2015
|
2014
|
|
Debt**
(a)
|
$
|
14,201
|
$
|
11,413
|
|
Equity
|
|
20,702
|
|
21,189
|
|
Capital
(b)
|
$
|
34,903
|
$
|
32,602
|
|
Debt to capital
(a/b)
|
|
40.7%
|
|
35.0%
|
|
|
|
*
|
Total debt divided by
total debt plus equity. We believe this measure is important to
management and investors in evaluating our balance sheet strength
and is important in managing our credit ratios and financing
relationships.
|
|
|
|
**
|
The prior period
amount has been adjusted for the retrospective adoption of
Accounting Standard Update 2015-03 related to the presentation of
deferred debt issuance costs.
|
|
Adjusted
Debt to Capital, Reconciliation to GAAP*
|
|
|
|
|
|
Dec.
31,
|
Dec.
31,
|
|
Millions,
Except Percentages
|
2015
|
2014
|
|
Debt**
|
$
|
14,201
|
$
|
11,413
|
|
Net present
value of operating leases
|
|
2,726
|
|
2,902
|
|
Unfunded
pension and OPEB, after tax
|
|
463
|
|
523
|
|
Adjusted debt
(a)
|
|
17,390
|
|
14,838
|
|
Equity
|
|
20,702
|
|
21,189
|
|
Adjusted
capital (b)
|
$
|
38,092
|
$
|
36,027
|
|
Adjusted debt
to capital (a/b)
|
|
45.7%
|
|
41.2%
|
|
|
|
*
|
Total debt plus net
present value of operating leases plus after-tax unfunded pension
and OPEB obligation divided by total debt plus net present value of
operating leases plus after-tax unfunded pension and OPEB
obligation plus equity. Operating leases were discounted using 4.8%
at December 31, 2015, and 5.3% at December 31, 2014. The discount
rate reflects our effective interest rate. We believe this measure
is important to management and investors in evaluating the total
amount of leverage in our capital structure including off-balance
sheet lease obligations.
|
|
|
|
**
|
The prior period
amount has been adjusted for the retrospective adoption of
Accounting Standard Update 2015-03 related to the presentation of
deferred debt issuance costs.
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
|
Non-GAAP Measures
Reconciliation to GAAP
|
|
|
Return on
Invested Capital as Adjusted (ROIC)*
|
|
|
|
|
|
|
|
|
|
|
|
Millions,
Except Percentages
|
2015
|
2014
|
2013
|
|
Net
income
|
$
|
4,772
|
$
|
5,180
|
$
|
4,388
|
|
Interest
expense
|
|
622
|
|
561
|
|
526
|
|
Interest on
average present value of operating leases
|
|
135
|
|
158
|
|
175
|
|
Taxes on
interest
|
|
(285)
|
|
(273)
|
|
(264)
|
|
Net operating
profit after taxes as adjusted (a)
|
$
|
5,244
|
$
|
5,626
|
$
|
4,825
|
|
Average
equity
|
$
|
20,946
|
$
|
21,207
|
$
|
20,551
|
|
Average
debt**
|
|
12,807
|
|
10,469
|
|
9,237
|
|
Average present
value of operating leases
|
|
2,814
|
|
2,980
|
|
3,077
|
|
Average
invested capital as adjusted (b)
|
$
|
36,567
|
$
|
34,656
|
$
|
32,865
|
|
Return on
invested capital as adjusted (a/b)
|
|
14.3%
|
|
16.2%
|
|
14.7%
|
|
|
|
*
|
ROIC 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 efficiency and
effectiveness of the Corporation's long-term capital investments,
and we currently use ROIC as a performance criteria in determining
certain elements of equity compensation for our executives. ROIC
should be considered in addition to, rather than as a substitute
for, other information provided in accordance with GAAP. The most
comparable GAAP measure is Return on Average Common Shareholders'
Equity.
|
|
|
|
**
|
The prior period
amounts have been adjusted for the retrospective adoption of
Accounting Standard Update 2015-03 related to the
presentation of deferred debt issuance costs.
|
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SOURCE Union Pacific Corporation