Union Pacific Railroad Company: SEC Filing :

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Form 8-K

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): January 19, 2012 (January 19, 2012)

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 January 19, 2012, Union Pacific Corporation issued a press release announcing its financial results for the quarter and year ended December 31, 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 January 19, 2012, announcing its financial results for the quarter and year ended December 31, 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: January 19, 2012


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 January 19, 2012

Press Release

Exhibit 99.1

UNION PACIFIC REPORTS RECORD FOURTH QUARTER AND FULL YEAR

FOR IMMEDIATE RELEASE

All-Time Quarterly Records

•

Diluted earnings per share of $1.99 improved 28 percent.

•

Operating revenue grew to $5.1 billion, up 16 percent.

•

Operating income totaled $1.6 billion, up 23 percent.

2011 Full Year Records

•

Diluted earnings per share of $6.72 improved 22 percent.

•

Operating revenue grew to $19.6 billion, up 15 percent.

•

Operating income totaled $5.7 billion, up 15 percent.

•

Return on invested capital of 12.4 percent improved 1.6 points.

•

Customer satisfaction index reached 92, up 3 points.

Omaha, Neb., January 19, 2012 – Union Pacific Corporation (NYSE: UNP) today reported 2011 fourth quarter net income of $964 million, or $1.99 per diluted share, compared to $775 million, or $1.56 per diluted share, in the fourth quarter 2010.

“The dedicated efforts of our employees, combined with the strength of our diverse railroad franchise, drove record fourth quarter results,” said Jim Young, Union Pacific chairman and chief executive officer. “In 2011, we achieved best-ever marks in customer satisfaction and employee safety, invested a record $3.2 billion in capital, and generated record free cash flow of $1.9 billion. 2011 was the most profitable year in Union Pacific’s history, allowing us to reward shareholders with increased financial returns.”

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Fourth Quarter Summary

Fourth quarter business volumes, as measured by total revenue carloads, grew 3 percent versus 2010. Four of Union Pacific’s six business groups—chemical, automotive, energy and industrial products—reported strong volume increases. Quarterly operating revenue increased 16 percent in the fourth quarter 2011 to a record $5.1 billion versus $4.4 billion in the fourth quarter 2010. In addition:

•

Each of UP’s six business groups reported freight revenue growth in the fourth quarter driven by increased fuel cost recoveries and core pricing gains. Volume growth was also a contributing factor in four of the six business groups.

•

Union Pacific’s operating ratio of 68.3 percent was a fourth quarter best, 1.9 points better than the previous fourth quarter record set in 2010. Pricing gains, volume growth and improved operating efficiency contributed to this record performance, more than offsetting the negative impact of higher diesel fuel prices compared to 2010.

•

Average quarterly diesel fuel prices increased 28 percent to $3.16 per gallon in the fourth quarter 2011 from $2.46 per gallon in the fourth quarter 2010.

•

The Customer Satisfaction Index of 92 tied a quarterly best and was two points better than the fourth quarter 2010.

•

Quarterly train speed, as reported to the Association of American Railroads, was 25.6 mph, decreasing 3 percent compared to the fourth quarter 2010.

•

The Company repurchased nearly 3.9 million shares in the fourth quarter 2011 at an average share price of $98.16, and an aggregate cost of $381 million.

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Summary of Fourth Quarter Freight Revenues

•

Automotive up 26 percent

•

Industrial Products up 24 percent

•

Energy up 21 percent

•

Chemicals up 18 percent

•

Intermodal up 13 percent

•

Agricultural up 2 percent

2011 Full Year Summary

For the full year 2011, Union Pacific reported net income of $3.3 billion or $6.72 per diluted share. This compares to $2.8 billion or $5.53 per diluted share in 2010, 18 and 22 percent increases, respectively. Operating revenue totaled a record $19.6 billion versus $17.0 billion in 2010. Operating income increased 15 percent to $5.7 billion, up from $5.0 billion in 2010.

•

All six business groups reported freight revenue growth and five of the six business groups reported volume growth in 2011. Carloadings increased 3 percent versus 2010 and freight revenue grew 15 percent to $18.5 billion. This compares to freight revenue of $16.1 billion in 2010.

•

UP’s operating ratio in 2011 was 70.7 percent, one-tenth of a point higher than the previous annual record of 70.6 percent set in 2010. Higher fuel prices negatively impacted the operating ratio by 1.7 points compared to 2010.

•

Average diesel fuel prices increased 36 percent to $3.12 per gallon in 2011 from $2.29 per gallon in 2010.

•

The Company increased the quarterly dividend per share twice during 2011, for a total increase of 58 percent for the year.

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•

The Company repurchased nearly 14.8 million shares in 2011 at an average share price of $95.94, and an aggregate cost of $1.4 billion.

2012 Outlook

“Looking ahead, we expect continued slow but steady economic growth in 2012,” Young said. “The diversity of our unique railroad franchise will continue to provide growth opportunities in various markets. As we move into the 150^th year of Union Pacific, our prospects have never looked better. We remain focused on providing excellent service to our customers, investing for the future, and generating increased financial returns for our shareholders.”

About Union Pacific

It was 150 years ago that Abraham Lincoln signed the Pacific Railway Act of July 1,1862, creating the original Union Pacific. One of America’s iconic companies, today, Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP), linking 23 states in the western two-thirds of the country by rail and providing freight solutions and logistics expertise to the global supply chain. From 2000 through 2011, Union Pacific spent more than $31 billion on its network and operations, making needed investments in America’s infrastructure and enhancing its ability to provide safe, reliable, fuel-efficient and environmentally responsible freight transportation. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad serves many of the fastest-growing U.S. population centers and emphasizes excellent customer service. Union Pacific operates competitive routes 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.

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 take advantage of growth opportunities and generate returns for shareholders; future economic conditions; and its prospects for future performance. 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.

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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,	*2011*			2010			%			*2011*			2010			%
Operating Revenues
Freight revenues	$	4,829		$	4,171			16	%	$	18,508		$	16,069			15	%
Other revenues		279			239			17			1,049			896			17
Total operating revenues		5,108			4,410			16			19,557			16,965			15

Operating Expenses
Compensation and benefits		1,155			1,112			4			4,681			4,314			9
Fuel		935			687			36			3,581			2,486			44
Purchased services and materials		508			467			9			2,005			1,836			9
Depreciation		413			380			9			1,617			1,487			9
Equipment and other rents		289			278			4			1,167			1,142			2
Other		191			173			10			782			719			9
Total operating expenses		3,491			3,097			13			13,833			11,984			15

Operating Income		1,617			1,313			23			5,724			4,981			15
Other income		54			9			F			112			54			F
Interest expense		(141	)		(142	)		(1	)		(572	)		(602	)		(5	)
Income before income taxes		1,530			1,180			30			5,264			4,433			19
Income taxes		(566	)		(405	)		40			(1,972	)		(1,653	)		19
Net Income	$	964		$	775			24	%	$	3,292		$	2,780			18	%




Share and Per Share
Earnings per share - basic	$	2.01		$	1.58			27	%	$	6.78		$	5.58			22	%
Earnings per share - diluted	$	1.99		$	1.56			28		$	6.72		$	5.53			22
Weighted average number of shares - basic		480.7			491.3			(2	)		485.7			498.2			(3	)
Weighted average number of shares - diluted		484.7			496.3			(2	)		489.8			502.9			(3	)
Dividends declared per share	$	0.60		$	0.38			58		$	1.93		$	1.31			47



Operating Ratio		68.3%			70.2%			(1.9	) pts		70.7%			70.6%			0.1	pts
Effective Tax Rate		37.0%			34.3%			2.7	pts		37.5%			37.3%			0.2	pts

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)


	*4th Quarter*						*Full Year*
For the Periods Ended December 31,	*2011*		2010		%		*2011*		2010		%
*Freight Revenues (Millions)*
Agricultural	$	854	$	840		2 %	$	3,324	$	3,018		10 %
Automotive		408		323		26		1,510		1,271		19
Chemicals		728		617		18		2,815		2,425		16
Energy		1,070		887		21		4,084		3,489		17
Industrial Products		810		652		24		3,166		2,639		20
Intermodal		959		852		13		3,609		3,227		12
Total	$	4,829	$	4,171		16 %	$	18,508	$	16,069		15 %

*Revenue Carloads (Thousands)*
Agricultural		236		248		(5)%		934		918		2 %
Automotive		171		155		10		653		611		7
Chemicals		232		211		10		921		844		9
Energy		558		519		8		2,164		2,056		5
Industrial Products		281		263		7		1,146		1,073		7
Intermodal *		817		841		(3)		3,254		3,313		(2)
Total		2,295		2,237		3 %		9,072		8,815		3 %

*Average Revenue per Car*
Agricultural	$	3,630	$	3,386		7 %	$	3,561	$	3,286		8 %
Automotive		2,378		2,100		13		2,311		2,082		11
Chemicals		3,131		2,923		7		3,055		2,874		6
Energy		1,917		1,709		12		1,888		1,697		11
Industrial Products		2,878		2,483		16		2,762		2,461		12
Intermodal *		1,175		1,012		16		1,109		974		14
Average	$	2,103	$	1,865		13 %	$	2,040	$	1,823		12 %

*	Each intermodal container or trailer equals one carload.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Financial Position (unaudited)


Millions, Except Percentages	Dec. 31, 2011		Dec. 31, 2010
Assets
Cash and cash equivalents	$	1,217	$	1,086
Other current assets		2,510		2,346
Investments		1,175		1,137
Net properties		39,934		38,253
Other assets		260		266

Total assets	$	45,096	$	43,088



Liabilities and Common Shareholders’ Equity
Debt due within one year	$	209	$	239
Other current liabilities		3,091		2,713
Debt due after one year		8,697		9,003
Deferred income taxes		12,385		11,557
Other long-term liabilities		2,136		1,813

Total liabilities		26,518		25,325

Total common shareholders’ equity		18,578		17,763

Total liabilities and common shareholders’ equity	$	45,096	$	43,088



Debt to Capital		32.4%		34.2%
Adjusted Debt to Capital*		40.7%		42.5%
Return on Invested Capital*		12.4%		10.8%

*	Adjusted Debt to Capital and Return on Invested Capital are non-GAAP measures; however, we believe that they are important 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,	*2011*		2010
Operating Activities
Net income	$	3,292	$	2,780
Depreciation		1,617		1,487
Deferred income taxes		1,003		672
Other - net		(39)		(834)
Cash provided by operating activities		5,873		4,105




Investing Activities
Capital investments		(3,176)		(2,482)
Other - net		57		(6)
Cash used in investing activities		(3,119)		(2,488)




Financing Activities
Common shares repurchased		(1,418)		(1,249)
Dividends paid		(837)		(602)
Debt repaid		(690)		(1,412)
Debt issued		486		894
Debt exchange		(272)		(98)
Other - net		108		86
Cash used in financing activities		(2,623)		(2,381)




Net Change in Cash and Cash Equivalents		131		(764)
Cash and cash equivalents at beginning of year		1,086		1,850
Cash and Cash Equivalents End of Period	$	1,217	$	1,086




Free Cash Flow*
Cash provided by operating activities	$	5,873	$	4,105
Receivables securitization facility**		-		400
Cash provided by operating activities excluding receivables securitization facility		5,873		4,505

Cash used in investing activities		(3,119)		(2,488)
Dividends paid		(837)		(602)
Free cash flow	$	1,917	$	1,415

*	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 required 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.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Operating and Performance Statistics (unaudited)


	*4th Quarter*						*Full Year*
For the Periods Ended December 31,	*2011*		2010		%		*2011*		2010		%
Operating/Performance Statistics
Gross ton-miles (GTMs) (millions)		252,686		240,087		5 %		978,163		931,400		5 %
Employees (average)		44,922		43,462		3		44,861		42,884		5
GTMs (millions) per employee		5.62		5.52		2		21.80		21.72		-
Customer satisfaction index		92		90		2 pts		92		89		3 pts


Locomotive Fuel Statistics
Average fuel price per gallon consumed		$ 3.16		$ 2.46		28 %		$ 3.12		$ 2.29		36 %
Fuel consumed in gallons (millions)		286		270		6		1,106		1,051		5
Fuel consumption rate*		1.135		1.123		1		1.131		1.129		-


AAR Reported Performance Measures
Average train speed (miles per hour)		25.6		26.5		(3) %		25.6		26.2		(2) %
Average terminal dwell time (hours)		26.5		25.8		3		26.2		25.4		3
Average rail car inventory (thousands)		274.1		270.6		1		272.9		274.4		(1)


Revenue Ton-Miles (Millions)
Agricultural		21,949		23,976		(8) %		88,094		88,237		- %
Automotive		3,404		3,101		10		13,004		12,542		4
Chemicals		15,166		13,619		11		59,542		54,233		10
Energy		62,293		57,237		9		238,567		225,583		6
Industrial Products		16,971		14,840		14		66,823		60,347		11
Intermodal		19,641		20,001		(2)		78,367		79,458		(1)
Total		139,424		132,774		5 %		544,397		520,400		5 %

*	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)


	*2011*
Millions, Except Per Share Amounts and Percentages	*1st Qtr*			*2nd Qtr*			*3rd Qtr*			*4th Qtr*			*Full Year*
Operating Revenues
Freight revenues	$	4,248		$	4,595		$	4,836		$	4,829		$	18,508
Other revenues		242			263			265			279			1,049
Total operating revenues		4,490			4,858			5,101			5,108			19,557

Operating Expenses
Compensation and benefits		1,167			1,166			1,193			1,155			4,681
Fuel		826			904			916			935			3,581
Purchased services and materials		475			516			506			508			2,005
Depreciation		395			401			408			413			1,617
Equipment and other rents		302			283			293			289			1,167
Other		188			196			207			191			782
Total operating expenses		3,353			3,466			3,523			3,491			13,833

Operating Income		1,137			1,392			1,578			1,617			5,724
Other income		15			26			17			54			112
Interest expense		(141)			(148)			(142)			(141)			(572)
Income before income taxes		1,011			1,270			1,453			1,530			5,264
Income tax expense		(372)			(485)			(549)			(566)			(1,972)
Net Income	$	639		$	785		$	904		$	964		$	3,292



Share and Per Share
Earnings per share - basic	$	1.31		$	1.61		$	1.87		$	2.01		$	6.78
Earnings per share - diluted	$	1.29		$	1.59		$	1.85		$	1.99		$	6.72
Weighted average number of shares - basic		489.6			488.4			484.2			480.7			485.7
Weighted average number of shares - diluted		494.1			492.4			488.1			484.7			489.8
Dividends declared per share	$	0.38		$	0.475		$	0.475		$	0.60		$	1.93


Operating Ratio		74.7	%		71.3	%		69.1	%		68.3	%		70.7	%
Effective Tax Rate		36.8	%		38.2	%		37.8	%		37.0	%		37.5	%

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)


			*2011*
	*1st Qtr*	*2nd Qtr*	*3rd Qtr*	*4th Qtr*	*Full Year*
*Freight Revenues (Millions)*
Agricultural	$ 807	$ 849	$ 814	$ 854	$ 3,324
Automotive	342	381	379	408	1,510
Chemicals	664	703	720	728	2,815
Energy	952	950	1,112	1,070	4,084
Industrial Products	690	803	863	810	3,166
Intermodal	793	909	948	959	3,609
Total	$ 4,248	$ 4,595	$ 4,836	$ 4,829	$ 18,508

*Revenue Carloads (Thousands)*
Agricultural	238	237	223	236	934
Automotive	157	165	160	171	653
Chemicals	223	233	233	232	921
Energy	538	496	572	558	2,164
Industrial Products	263	297	305	281	1,146
Intermodal *	770	819	848	817	3,254
Total	2,189	2,247	2,341	2,295	9,072

*Average Revenue per Car*
Agricultural	$ 3,386	$ 3,580	$ 3,655	$ 3,630	$ 3,561
Automotive	2,175	2,321	2,364	2,378	2,311
Chemicals	2,974	3,024	3,087	3,131	3,055
Energy	1,770	1,916	1,945	1,917	1,888
Industrial Products	2,628	2,697	2,832	2,878	2,762
Intermodal *	1,031	1,108	1,119	1,175	1,109
Average	$ 1,941	$ 2,045	$ 2,066	$ 2,103	$ 2,040

*	Each intermodal container or trailer equals one carload.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP

		$12,753		$12,753
Debt to Capital*
Millions, Except Percentages	Dec. 31, 2011		Dec. 31, 2010
Debt (a)	$	8,906	$	9,242
Equity		18,578		17,763
Capital (b)	$	27,484	$	27,005

Debt to capital (a/b)		32.4%		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.

		$12,753		$12,753
Adjusted Debt to Capital, Reconciliation to GAAP*
Millions, Except Percentages	Dec. 31, 2011		Dec. 31, 2010
Debt		8,906		9,242
Net present value of operating leases		3,224		3,476
Unfunded pension and OPEB		623		421
Adjusted debt (a)	$	12,753	$	13,139
Equity		18,578		17,763
Adjusted capital (b)	$	31,331	$	30,902

Adjusted debt to capital (a/b)		40.7%		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 December 31, 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.

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP


Return on Invested Capital as Adjusted (ROIC)*
Millions, Except Percentages	Dec. 31, 2011		Dec. 31, 2010
Net income	$	3,292	$	2,780
Add: Interest expense		572		602
Add: Interest on present value of operating leases		208		222
Less: Taxes on interest		(293)		(307)
Net operating profit after taxes as adjusted (a)	$	3,779	$	3,297

Average equity	$	18,171	$	17,282
Add: Average debt		9,074		9,545
Add: Average value of sold receivables		-		200
Add: Average present value of operating leases		3,350		3,574
Average invested capital as adjusted (b)	$	30,595	$	30,601

Return on invested capital as adjusted (a/b)		12.4%		10.8%

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 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.