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 20, 2011 (October 20, 2011)
UNION PACIFIC CORPORATION
(Exact name of registrant as specified in its charter)
| Utah | 1-6075 | 13-2626465 | ||
| (State or other jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer 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)) |
Item 2.02 Results of Operations and Financial Condition.
On October 20, 2011, Union Pacific Corporation issued a press release announcing its financial results for the quarter ended September 30, 2011. 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.
| (c) | Exhibits. |
| 99.1 | Press Release of Union Pacific Corporation, dated October 20, 2011, announcing its financial results for the quarter ended September 30, 2011. |
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 20, 2011
| UNION PACIFIC CORPORATION | ||
| By: | /s/ Robert M. Knight, Jr. | |
| Robert M. Knight, Jr. Executive Vice President – Finance and Chief Financial Officer | ||
Exhibit Index
| 99.1 | Press Release of Union Pacific Corporation, dated October 20, 2011 |
Exhibit 99.1
UNION PACIFIC REPORTS RECORD THIRD QUARTER
Achieves Best-Ever Earnings Per Share
FOR IMMEDIATE RELEASE
All-Time Quarterly Records
| • | Diluted earnings per share improved 19 percent to $1.85. |
| • | Operating revenues totaled $5.1 billion, up 16 percent. |
| • | Operating income totaled $1.6 billion, up 13 percent. |
Omaha, Neb., October 20, 2011 – Union Pacific Corporation (NYSE: UNP) today reported 2011 third quarter net income of $904 million, or $1.85 per diluted share, compared to $778 million, or $1.56 per diluted share, in the third quarter 2010.
“Union Pacific delivered top and bottom line record results in the third quarter,” said Jim Young, Union Pacific chairman and chief executive officer. “We’re clearly demonstrating how Union Pacific’s diverse franchise and value-added service offerings are driving record free cash flow and improved financial returns for our shareholders.”
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Third Quarter Summary
Third quarter business volumes, as measured by total revenue carloads, grew one percent versus 2010. Four of Union Pacific’s six business groups reported volume increases, including strong growth in automotive, industrial products, energy and chemical shipments. Agricultural products and intermodal volumes were down in the quarter compared to 2010. Quarterly operating revenue increased 16 percent in the third quarter 2011 to a record $5.1 billion versus $4.4 billion in the third quarter 2010. In addition:
| • | Each of Union Pacific’s six business groups reported freight revenue growth in the third quarter driven by increased fuel cost recoveries, core pricing gains and volume growth. |
| • | Average quarterly diesel fuel prices increased 42 percent from $2.24 per gallon in the third quarter 2010 to $3.18 per gallon in the third quarter 2011. |
| • | Union Pacific’s operating ratio of 69.1 percent was 0.9 points higher than the best-ever quarterly record achieved in the third quarter 2010. The impact of higher fuel prices negatively impacted the operating ratio by 1.7 points compared to 2010. |
| • | Severe heat and extended drought conditions in Texas and the resulting damage to large sections of track structure negatively impacted operating efficiencies, driving operating expenses up by $18 million during the quarter. |
| • | The Customer Satisfaction Index of 91 set a new third quarter record, one point better than the third quarter 2010. |
| • | Quarterly train speed, as reported to the Association of American Railroads, was 24.6 mph, decreasing four percent compared to the third quarter 2010, mainly driven by weather-related challenges. |
| • | The Company repurchased 4.7 million shares in the third quarter 2011 at an average share price of $91.45 and an aggregate cost of $428 million. |
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Summary of Third Quarter Freight Revenues
| • | Industrial Products up 24 percent |
| • | Automotive up 23 percent |
| • | Energy up 21 percent |
| • | Chemicals up 14 percent |
| • | Agricultural up 9 percent |
| • | Intermodal up 8 percent |
Outlook
“While the economic outlook is uncertain, we’re optimistic about the future for Union Pacific,” said Young. “As we have shown in this weaker economy, the diversity of our business continues to deliver record results. We remain confident in the strength of our fundamental strategy to enhance our franchise, provide increased value for our customers, and generate improved financial returns for our shareholders.”
About Union Pacific
Union Pacific Corporation owns one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally responsible and safe mode of freight transportation. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada’s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America’s premier rail franchise.
Investor contact is Michelle Gerhardt, (402) 544-4227.
Media contact is Donna Kush, (402) 544-3753.
Supplemental financial information is attached.
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****
This press release and related materials contain statements about the Corporation’s future that are not statements of historical fact, including specifically the statements regarding the Corporation’s expectations with respect to its ability to generate returns for shareholders; current and future economic conditions; and its ability to enhance its franchise, provide value to its customers, and improve financial returns. 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 Corporation’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 Corporation’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 Corporation’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 Corporation’s Annual Report on Form 10-K for 2010, which was filed with the SEC on February 4, 2011. The Corporation 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 Corporation 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 Corporation does update one or more forward-looking statements, no inference should be drawn that the Corporation 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, For the Periods Ended September 30, |
3rd Quarter | Year-to-Date | ||||||||||||||||||||||||
| 2011 | 2010 | % | 2011 | 2010 | % | |||||||||||||||||||||
| Operating Revenues |
||||||||||||||||||||||||||
| Freight revenues |
$ | 4,836 | $ | 4,187 | 16 | % | $ | 13,679 | $ | 11,898 | 15 | % | ||||||||||||||
| Other revenues |
265 | 221 | 20 | 770 | 657 | 17 | ||||||||||||||||||||
|
Total operating revenues |
5,101 | 4,408 | 16 | 14,449 | 12,555 | 15 | ||||||||||||||||||||
| Operating Expenses |
||||||||||||||||||||||||||
| Compensation and benefits |
1,193 | 1,092 | 9 | 3,526 | 3,202 | 10 | ||||||||||||||||||||
| Fuel |
916 | 608 | 51 | 2,646 | 1,799 | 47 | ||||||||||||||||||||
| Purchased services and materials |
506 | 465 | 9 | 1,497 | 1,369 | 9 | ||||||||||||||||||||
| Depreciation |
408 | 372 | 10 | 1,204 | 1,107 | 9 | ||||||||||||||||||||
| Equipment and other rents |
293 | 292 | - | 878 | 864 | 2 | ||||||||||||||||||||
| Other |
207 | 178 | 16 | 591 | 546 | 8 | ||||||||||||||||||||
|
Total operating expenses |
3,523 | 3,007 | 17 | 10,342 | 8,887 | 16 | ||||||||||||||||||||
| Operating Income |
1,578 | 1,401 | 13 | 4,107 | 3,668 | 12 | ||||||||||||||||||||
| Other income |
17 | 25 | (32) | 58 | 45 | 29 | ||||||||||||||||||||
| Interest expense |
(142) | (153) | (7) | (431) | (460) | (6) | ||||||||||||||||||||
| Income before income taxes |
1,453 | 1,273 | 14 | 3,734 | 3,253 | 15 | ||||||||||||||||||||
| Income taxes |
(549) | (495) | 11 | (1,406) | (1,248) | 13 | ||||||||||||||||||||
|
Net Income |
$ | 904 | $ | 778 | 16 | % | $ | 2,328 | $ | 2,005 | 16 | % | ||||||||||||||
| Share and Per Share |
||||||||||||||||||||||||||
| Earnings per share - basic |
$ | 1.87 | $ | 1.58 | 18 | % | $ | 4.78 | $ | 4.01 | 19 | % | ||||||||||||||
| Earnings per share - diluted |
$ | 1.85 | $ | 1.56 | 19 | $ | 4.74 | $ | 3.98 | 19 | ||||||||||||||||
| Weighted average number of shares - basic |
484.2 | 493.0 | (2) | 487.4 | 499.8 | (2) | ||||||||||||||||||||
| Weighted average number of shares - diluted |
488.1 | 497.7 | (2) | 491.5 | 504.3 | (3) | ||||||||||||||||||||
| Dividends declared per share |
$ | 0.475 | $ | 0.33 | 44 | $ | 1.33 | $ | 0.93 | 43 | ||||||||||||||||
| Operating Ratio |
69.1% | 68.2 | % | 0.9 | pts | 71.6% | 70.8% | 0.8 | pts | |||||||||||||||||
| Effective Tax Rate |
37.8% | 38.9 | % | (1.1) | pts | 37.7% | 38.4% | (0.7) | pts | |||||||||||||||||
1
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
Freight Revenues Statistics (unaudited)
| 3rd Quarter | Year-to-Date | |||||||||||||||||||||||
| For the Periods Ended September 30, |
2011 | 2010 | % | 2011 | 2010 | % | ||||||||||||||||||
| Freight Revenues (Millions) |
||||||||||||||||||||||||
| Agricultural |
$ | 814 | $ | 750 | 9 | % | $ | 2,470 | $ | 2,178 | 13 | % | ||||||||||||
| Automotive |
379 | 309 | 23 | 1,102 | 948 | 16 | ||||||||||||||||||
| Chemicals |
720 | 629 | 14 | 2,087 | 1,808 | 15 | ||||||||||||||||||
| Energy |
1,112 | 922 | 21 | 3,014 | 2,602 | 16 | ||||||||||||||||||
| Industrial Products |
863 | 697 | 24 | 2,356 | 1,987 | 19 | ||||||||||||||||||
| Intermodal * |
948 | 880 | 8 | 2,650 | 2,375 | 12 | ||||||||||||||||||
|
Total |
$ | 4,836 | $ | 4,187 | 16 | % | $ | 13,679 | $ | 11,898 | 15 | % | ||||||||||||
| Revenue Carloads (Thousands) |
||||||||||||||||||||||||
| Agricultural |
223 | 229 | (3) | % | 698 | 670 | 4 | % | ||||||||||||||||
| Automotive |
160 | 146 | 10 | 482 | 456 | 6 | ||||||||||||||||||
| Chemicals |
233 | 221 | 5 | 689 | 633 | 9 | ||||||||||||||||||
| Energy |
572 | 535 | 7 | 1,606 | 1,537 | 4 | ||||||||||||||||||
| Industrial Products |
305 | 282 | 8 | 865 | 810 | 7 | ||||||||||||||||||
| Intermodal * |
848 | 903 | (6) | 2,437 | 2,472 | (1) | ||||||||||||||||||
|
Total |
2,341 | 2,316 | 1 | % | 6,777 | 6,578 | 3 | % | ||||||||||||||||
| Average Revenue per Car |
||||||||||||||||||||||||
| Agricultural |
$ | 3,655 | $ | 3,271 | 12 | % | $ | 3,537 | $ | 3,249 | 9 | % | ||||||||||||
| Automotive |
2,364 | 2,114 | 12 | 2,287 | 2,076 | 10 | ||||||||||||||||||
| Chemicals |
3,087 | 2,858 | 8 | 3,029 | 2,858 | 6 | ||||||||||||||||||
| Energy |
1,945 | 1,721 | 13 | 1,877 | 1,692 | 11 | ||||||||||||||||||
| Industrial Products |
2,832 | 2,470 | 15 | 2,724 | 2,453 | 11 | ||||||||||||||||||
| Intermodal * |
1,119 | 974 | 15 | 1,087 | 961 | 13 | ||||||||||||||||||
|
Average |
$ | 2,066 | $ | 1,807 | 14 | % | $ | 2,019 | $ | 1,809 | 12 | % | ||||||||||||
| * | Each intermodal container or trailer equals one carload. |
2
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statements of Financial Position (unaudited)
| Millions, Except Percentages |
Sep. 30, 2011 |
Dec. 31, 2010 |
||||||
| Assets |
||||||||
| Cash and cash equivalents |
$ | 1,647 | $ | 1,086 | ||||
| Other current assets |
2,567 | 2,346 | ||||||
| Investments |
1,171 | 1,137 | ||||||
| Net properties |
39,425 | 38,253 | ||||||
| Other assets |
256 | 266 | ||||||
|
Total assets |
$ | 45,066 | $ | 43,088 | ||||
| Liabilities and Common Shareholders’ Equity |
||||||||
| Debt due within one year |
$ | 642 | $ | 239 | ||||
| Other current liabilities |
3,082 | 2,713 | ||||||
| Debt due after one year |
8,765 | 9,003 | ||||||
| Deferred income taxes |
12,290 | 11,557 | ||||||
| Other long-term liabilities |
1,722 | 1,813 | ||||||
|
Total liabilities |
26,501 | 25,325 | ||||||
|
Total common shareholders’ equity |
18,565 | 17,763 | ||||||
|
Total liabilities and common shareholders’ equity |
$ | 45,066 | $ | 43,088 | ||||
| Debt to Capital |
33.6% | 34.2% | ||||||
| Adjusted Debt to Capital* |
41.4% | 42.5% | ||||||
| * | Adjusted Debt to Capital is a non-GAAP measure; however, we believe that it is important in evaluating our financial performance. See page 8 for a reconciliation to GAAP. |
3
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statements of Cash Flows (unaudited)
| Millions, |
Year-to-Date | |||||||
| For the Periods Ended September 30, |
2011 | 2010 | ||||||
| Operating Activities |
||||||||
| Net income |
$ | 2,328 | $ | 2,005 | ||||
| Depreciation |
1,204 | 1,107 | ||||||
| Deferred income taxes |
721 | 433 | ||||||
| Other - net |
81 | (825) | ||||||
|
Cash provided by operating activities |
4,334 | 2,720 | ||||||
| Investing Activities |
||||||||
| Capital investments |
(2,218) | (1,686) | ||||||
| Other - net |
(23) | 13 | ||||||
|
Cash used in investing activities |
(2,241) | (1,673) | ||||||
| Financing Activities |
||||||||
| Common shares repurchased |
(1,036) | (1,019) | ||||||
| Dividends paid |
(607) | (438) | ||||||
| Debt issued |
486 | 894 | ||||||
| Debt exchange |
(272) | (98) | ||||||
| Debt repaid |
(188) | (933) | ||||||
| Other - net |
85 | 55 | ||||||
|
Cash used in financing activities |
(1,532) | (1,539) | ||||||
| Net Change in Cash and Cash Equivalents |
561 | (492) | ||||||
| Cash and cash equivalents at beginning of year |
1,086 | 1,850 | ||||||
|
Cash and Cash Equivalents End of Period |
$ | 1,647 | $ | 1,358 | ||||
| Free Cash Flow* |
||||||||
| Cash provided by operating activities |
$ | 4,334 | $ | 2,720 | ||||
| Receivables securitization facility** |
- | 400 | ||||||
|
Cash provided by operating activities excluding receivables securitization facility |
4,334 | 3,120 | ||||||
| Cash used in investing activities |
(2,241) | (1,673) | ||||||
| Dividends paid |
(607) | (438) | ||||||
|
Free cash flow |
$ | 1,486 | $ | 1,009 | ||||
| * | Free cash flow is a non-GAAP measure; however, we believe that it is important in evaluating our financial performance and measures our ability to generate cash without incurring additional financing. |
| ** | Effective January 1, 2010, new accounting guidance requires us to account for receivables transferred under our receivables securitization facility as secured borrowings in our Condensed Consolidated Statements of Financial Position and as financing activities in our Condensed Consolidated Statements of Cash Flows. The receivables securitization facility line in the above table is included in our free cash flow calculation to adjust cash provided by operating activities as though our receivables securitization facility had been accounted for under the new accounting guidance for all periods presented. |
4
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
Operating and Performance Statistics (unaudited)
| 3rd Quarter | Year-to-Date | |||||||||||||||||||||||||
| For the Periods Ended September 30, |
2011 | 2010 | % | 2011 | 2010 | % | ||||||||||||||||||||
| Operating/Performance Statistics |
||||||||||||||||||||||||||
| Gross ton-miles (GTMs) (millions) |
250,855 | 239,541 | 5 | % | 725,477 | 691,313 | 5 | % | ||||||||||||||||||
| Employees (average) |
45,507 | 43,375 | 5 | 44,841 | 42,692 | 5 | ||||||||||||||||||||
| GTMs (millions) per employee |
5.51 | 5.52 | - | 16.18 | 16.19 | - | ||||||||||||||||||||
| Customer satisfaction index |
91 | 90 | 1 | pt | 91 | 89 | 2 | pts | ||||||||||||||||||
| Locomotive Fuel Statistics |
||||||||||||||||||||||||||
| Average fuel price per gallon consumed |
$ | 3.18 | $ | 2.24 | 42 | % | $ | 3.11 | $ | 2.23 | 39 | % | ||||||||||||||
| Fuel consumed in gallons (millions) |
277 | 261 | 6 | 820 | 781 | 5 | ||||||||||||||||||||
| Fuel consumption rate* |
1.103 | 1.092 | 1 | 1.130 | 1.129 | - | ||||||||||||||||||||
| AAR Reported Performance Measures |
||||||||||||||||||||||||||
| Average train speed (miles per hour) |
24.6 | 25.7 | (4) | % | 25.6 | 26.1 | (2) | % | ||||||||||||||||||
| Average terminal dwell time (hours) |
26.2 | 25.0 | 5 | 26.1 | 25.3 | 3 | ||||||||||||||||||||
| Average rail car inventory (thousands) |
274.4 | 274.4 | - | 272.5 | 275.7 | (1) | ||||||||||||||||||||
| Revenue Ton-Miles (Millions) |
||||||||||||||||||||||||||
| Agricultural |
20,991 | 22,062 | (5) | % | 66,145 | 64,261 | 3 | % | ||||||||||||||||||
| Automotive |
3,218 | 2,984 | 8 | 9,600 | 9,441 | 2 | ||||||||||||||||||||
| Chemicals |
14,855 | 13,956 | 6 | 44,376 | 40,614 | 9 | ||||||||||||||||||||
| Energy |
63,274 | 59,331 | 7 | 176,274 | 168,346 | 5 | ||||||||||||||||||||
| Industrial Products |
17,746 | 15,687 | 13 | 49,852 | 45,507 | 10 | ||||||||||||||||||||
| Intermodal |
19,961 | 20,489 | (3) | 58,726 | 59,457 | (1) | ||||||||||||||||||||
|
Total |
140,045 | 134,509 | 4 | % | 404,973 | 387,626 |
|
4 |
% | |||||||||||||||||
| * | 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)
| 2011 | ||||||||||||||||
| Millions, Except Per Share Amounts and Percentages |
1st Qtr | 2nd Qtr | 3rd Qtr | Year-to-Date | ||||||||||||
| Operating Revenues |
||||||||||||||||
| Freight revenues |
$ | 4,248 | $ | 4,595 | $ | 4,836 | $ | 13,679 | ||||||||
| Other revenues |
242 | 263 | 265 | 770 | ||||||||||||
|
Total operating revenues |
4,490 | 4,858 | 5,101 | 14,449 | ||||||||||||
| Operating Expenses |
||||||||||||||||
| Compensation and benefits |
1,167 | 1,166 | 1,193 | 3,526 | ||||||||||||
| Fuel |
826 | 904 | 916 | 2,646 | ||||||||||||
| Purchased services and materials |
475 | 516 | 506 | 1,497 | ||||||||||||
| Depreciation |
395 | 401 | 408 | 1,204 | ||||||||||||
| Equipment and other rents |
302 | 283 | 293 | 878 | ||||||||||||
| Other |
188 | 196 | 207 | 591 | ||||||||||||
|
Total operating expenses |
3,353 | 3,466 | 3,523 | 10,342 | ||||||||||||
| Operating Income |
1,137 | 1,392 | 1,578 | 4,107 | ||||||||||||
| Other income |
15 | 26 | 17 | 58 | ||||||||||||
| Interest expense |
(141) | (148) | (142) | (431) | ||||||||||||
| Income before income taxes |
1,011 | 1,270 | 1,453 | 3,734 | ||||||||||||
| Income tax expense |
(372) | (485) | (549) | (1,406) | ||||||||||||
|
Net Income |
$ | 639 | $ | 785 | $ | 904 | $ | 2,328 | ||||||||
| Share and Per Share |
||||||||||||||||
| Earnings per share - basic |
$ | 1.31 | $ | 1.61 | $ | 1.87 | $ | 4.78 | ||||||||
| Earnings per share - diluted |
$ | 1.29 | $ | 1.59 | $ | 1.85 | $ | 4.74 | ||||||||
| Weighted average number of shares - basic |
489.6 | 488.4 | 484.2 | 487.4 | ||||||||||||
| Weighted average number of shares - diluted |
494.1 | 492.4 | 488.1 | 491.5 | ||||||||||||
| Dividends declared per share |
$ | 0.38 | $ | 0.475 | $ | 0.475 | $ | 1.33 | ||||||||
| Operating Ratio |
74.7 | % | 71.3 | % | 69.1 | % | 71.6 | % | ||||||||
|
Effective Tax Rate |
36.8 | % | 38.2 | % | 37.8 | % | 37.7 | % | ||||||||
6
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
Freight Revenues Statistics (unaudited)
| 2011 | ||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | Year-to-Date | |||||||||||||
| Freight Revenues (Millions) |
||||||||||||||||
| Agricultural |
$ | 807 | $ | 849 | $ | 814 | $ | 2,470 | ||||||||
| Automotive |
342 | 381 | 379 | 1,102 | ||||||||||||
| Chemicals |
664 | 703 | 720 | 2,087 | ||||||||||||
| Energy |
952 | 950 | 1,112 | 3,014 | ||||||||||||
| Industrial Products |
690 | 803 | 863 | 2,356 | ||||||||||||
| Intermodal * |
793 | 909 | 948 | 2,650 | ||||||||||||
|
Total |
$ | 4,248 | $ | 4,595 | $ | 4,836 | $ | 13,679 | ||||||||
| Revenue Carloads (Thousands) |
||||||||||||||||
| Agricultural |
238 | 237 | 223 | 698 | ||||||||||||
| Automotive |
157 | 165 | 160 | 482 | ||||||||||||
| Chemicals |
223 | 233 | 233 | 689 | ||||||||||||
| Energy |
538 | 496 | 572 | 1,606 | ||||||||||||
| Industrial Products |
263 | 297 | 305 | 865 | ||||||||||||
| Intermodal * |
770 | 819 | 848 | 2,437 | ||||||||||||
|
Total |
2,189 | 2,247 | 2,341 | 6,777 | ||||||||||||
| Average Revenue per Car |
||||||||||||||||
| Agricultural |
$ | 3,386 | $ | 3,580 | $ | 3,655 | $ | 3,537 | ||||||||
| Automotive |
2,175 | 2,321 | 2,364 | 2,287 | ||||||||||||
| Chemicals |
2,974 | 3,024 | 3,087 | 3,029 | ||||||||||||
| Energy |
1,770 | 1,916 | 1,945 | 1,877 | ||||||||||||
| Industrial Products |
2,628 | 2,697 | 2,832 | 2,724 | ||||||||||||
| Intermodal * |
1,031 | 1,108 | 1,119 | 1,087 | ||||||||||||
|
Average |
$ | 1,941 | $ | 2,045 | $ | 2,066 | $ | 2,019 | ||||||||
| * | Each intermodal container or trailer equals one carload. |
7
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
Non-GAAP Measures Reconciliation to GAAP
| Debt to Capital* |
||||||||
| Millions, Except Percentages |
Sep. 30, 2011 |
Dec. 31, 2010 |
||||||
| Debt (a) |
$ | 9,407 | $ | 9,242 | ||||
| Equity |
18,565 | 17,763 | ||||||
|
Capital (b) |
$ | 27,972 | $ | 27,005 | ||||
|
Debt to capital (a/b) |
33.6% | 34.2% | ||||||
| * | Total debt divided by total debt plus equity. Management believes this is an important measure in evaluating our balance sheet strength and is important in managing our credit ratios and financing relationships. |
| Adjusted Debt to Capital, Reconciliation to GAAP* |
||||||||
| Millions, Except Percentages |
Sep. 30, 2011 |
Dec. 31, 2010 |
||||||
| Debt |
9,407 | 9,242 | ||||||
| Net present value of operating leases |
3,267 | 3,476 | ||||||
| Unfunded pension and OPEB |
421 | 421 | ||||||
|
Adjusted debt (a) |
$ | 13,095 | $ | 13,139 | ||||
| Equity |
18,565 | 17,763 | ||||||
| Adjusted capital (b) |
$ | 31,660 | $ | 30,902 | ||||
|
Adjusted debt to capital (a/b) |
41.4% | 42.5% | ||||||
| * | 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 6.2% at September 30, 2011 and December 31, 2010. Management believes this is an important measure in evaluating the total amount of leverage in our capital structure including off-balance sheet obligations. |
8