美國
證券交易委員會
華盛頓特區 20549
表格
(標記一個)
| 根據1934年證券交易法第13或15(d)條款的季度報告。 |
截至2024年6月30日季度結束
或
| | 根據1934年證券交易法第13或15(d)條款的過渡報告 |
對於從__________到__________的過渡期間
委員會檔案編號
聯合太平洋公司
（依憑章程所載的完整登記名稱）
| | |
| （公司註冊或組織的州或其他司法管轄區） | （國稅局雇主識別號碼） |
| (總部辦公地址) | （郵政編碼） |
(
(註冊人電話號碼，包括區號)
| 根據法案第12(b)條規定註冊的證券： | ||
| 每個類別的標題 | 交易符號 | 每個註冊交易所的名稱 |
| | | |
請勾選表示：（1）申報人在過去12個月內（或申報人在此期間需要提交此類報告的較短時間內，已提交了證券交易所法案第13條或第15(d)條規定的所有報告；並 （2）該申報人在過去90天內一直受到申報要求的約束。
✔
請勾選表示該登記者是否已在過去12個月內（或該登記者需要提交這些文件的較短期間）向Regulation S-t的第232.405條提出的每個互動式數據文件。
✔
請勾選指示登記者是否為大型快速提交人、快速提交人、非快速提交人、較小的報告公司或新興成長型公司。請參閱交易所法規120億2條，了解「大型快速提交人」、「快速提交人」、「較小的報告公司」和「新興成長型公司」的定義。
| | ☑ | 加速歸檔者 | ☐ | 非加速檔案提交者 | ☐ | ||
| 較小的報告公司 | | 新興成長公司 | |
如果該企業為新興成長型企業，請在是否選擇不使用證交法第13(a)條所提供之符合任何新的或修訂財務會計標準的延長過渡期的方格中打勾。
☐
勾選表示申報人是否為外殼公司（定義於交易所法規第1202條）。
截至 2024年10月18日，到期時有
聯合太平洋公司
及其附屬公司
| 第一部分. 財務資訊 | ||
| 项目1。 |
||
| 3 | ||
| 3 | ||
| 綜合收入簡明綜合損益表（未經審核） | ||
| 截至2024年9月30日和2023年9個月的情況 | 4 | |
| 綜合收入簡明綜合財務報表（未經審核） | ||
| 截至2024年9月30日和2023年9個月的情況 | 4 | |
| 5 | ||
| 6 | ||
| 7 | ||
| 8 | ||
| 项目2。 |
18 | |
| 项目3。 |
28 | |
| 项目4。 |
29 | |
| 第二部分。其他資訊 | ||
| 项目1。 |
29 | |
| 项目1A。 |
29 | |
| 项目2。 |
30 | |
| 项目3。 |
30 | |
| 项目4。 |
30 | |
| 项目5。 |
||
| 第6項。 |
||
| 證書 |
33 |
|
壓縮綜合收益陳述表（未經審計）
聯合太平洋有限公司及其子公司
| 截至9月30日三個月，除每股金額外的數額爲百萬美元 |
2024 |
2023 |
||||||
| 營業收入： |
||||||||
| 貨運收入 |
$ | $ | ||||||
| 其他營業收入 |
||||||||
| 總營收 |
||||||||
| 營業費用： |
||||||||
| 薪酬和福利 |
||||||||
| 購買的服務和材料 |
||||||||
| 燃料幣。 |
||||||||
| 折舊費用 |
||||||||
| 設備及其他租金 |
||||||||
| 其他 |
||||||||
| 營業費用總計 |
||||||||
| 營業利潤 |
||||||||
| 其他收入，淨額（附註6） |
||||||||
| 利息支出 |
( |
) | ( |
) | ||||
| 稅前收入 |
||||||||
| 所得稅費用（附註7） |
( |
) | ( |
) | ||||
| 淨收入 |
$ | $ | ||||||
| 股份和每股收益（附註8）： |
||||||||
| 基本每股收益 |
$ | $ | ||||||
| 每股收益（攤薄） |
$ | $ | ||||||
| 業務 |
||||||||
| 加權平均股數-攤薄 |
||||||||
聯合太平洋公司及其子公司
| 截至9月30日三個月的淨利潤爲百萬美元 |
2024 |
2023 |
||||||
| 淨收入 |
$ | $ | ||||||
| 其他綜合收益/(虧損): |
||||||||
| 確定福利計劃 |
( |
) | ||||||
| 外幣翻譯 |
( |
) | ||||||
| 金融衍生品未實現收益 |
||||||||
| 其他全面收益/(損失)合計[a] |
( |
) | ||||||
| 綜合收益 |
$ | $ | ||||||
| [a] |
扣除遞延稅款後的1美元在截至三個月的期間內爲100萬美元和-100萬美元 2024年和2023年的結束日期是9月30日，分別爲。 |
附註是這些未經審計的基本報表的一部分。
| 截至9月30日止，除每股金額外，金額爲百萬美元 |
2024 |
2023 |
||||||
| 營業收入： |
||||||||
| 貨運收入 |
$ | $ | ||||||
| 其他營業收入 |
||||||||
| 總營收 |
||||||||
| 營業費用： |
||||||||
| 薪酬和福利 |
||||||||
| 購買的服務和材料 |
||||||||
| 燃料幣。 |
||||||||
| 折舊費用 |
||||||||
| 設備及其他租金 |
||||||||
| 其他 |
||||||||
| 營業費用總計 |
||||||||
| 營業利潤 |
||||||||
| 其他收入，淨額（附註6） |
||||||||
| 利息支出 |
( |
) | ( |
) | ||||
| 稅前收入 |
||||||||
| 所得稅費用（附註7） |
( |
) | ( |
) | ||||
| 淨收入 |
$ | $ | ||||||
| 股份和每股收益（附註8）： |
||||||||
| 基本每股收益 |
$ | $ | ||||||
| 每股收益（攤薄） |
$ | $ | ||||||
| 業務 |
||||||||
| 加權平均股數-攤薄 |
||||||||
| 截至9月30日的九個月，幾百萬美元 |
2024 |
2023 |
||||||
| 淨收入 |
$ | $ | ||||||
| 其他綜合收益/(虧損): |
||||||||
| 確定福利計劃 |
||||||||
| 外幣翻譯 |
( |
) | ||||||
| 金融衍生品未實現收益 |
||||||||
| 其他全面收益/(損失)合計[a] |
( |
) | ||||||
| 綜合收益 |
$ | $ | ||||||
| [a] | 2024年和2023年截至9月30日的九個月期間，遞延稅款淨額分別爲100萬美元和（4）百萬美元 |
附註是這些未經審計的基本報表的一部分。
Condensed Consolidated Statements of Financial Position (Unaudited)
Union Pacific Corporation and Subsidiary Companies
| 9月30日， | 12月31日， | |||||||
| 百萬，除了股份和每股金額 | 2024 | 2023 | ||||||
| 資產 | ||||||||
| 流動資產： | ||||||||
| 現金及現金等價物 | $ | $ | ||||||
| 短期投資（附註13） | ||||||||
| 應收賬款淨額（附註10） | ||||||||
| 物料和用品 | ||||||||
| 其他資產 | ||||||||
| 總流動資產 | ||||||||
| 投資 | ||||||||
| 資產，淨額（注11） | ||||||||
| 營業租賃資產 | ||||||||
| 其他 | ||||||||
| 總資產 | $ | $ | ||||||
| 負債和普通股股東權益 | ||||||||
| 流動負債: | ||||||||
| 應付賬款及其他流動負債（附註12） | $ | $ | ||||||
| 一年內到期的債務（附註14） | ||||||||
| 流動負債合計 | ||||||||
| 一年後到期的債務（附註14） | ||||||||
| 經營租賃負債 | ||||||||
| 延遲所得稅 | ||||||||
| 其他長期負債 | ||||||||
| 承諾和 contingencies（注意 15） | ||||||||
| 負債合計 | ||||||||
| 普通股股東權益： | ||||||||
| 普通股，每股 每股面值，3172175和 | ||||||||
| 自2023年12月31日和2024年3月31日，總額爲和頁面。已上市 | ||||||||
| 實收資本溢價 | ||||||||
| 保留盈餘 | ||||||||
| 自家保管的股票 | ( | ) | ( | ) | ||||
| 累計其他全面收益損失（注9） | ( | ) | ( | ) | ||||
| 總普通股東權益 | ||||||||
| 負債合計和普通股東權益 | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
聯合太平洋公司及其子公司
| 截至9月30日的九個月，幾百萬美元 |
2024 |
2023 |
||||||
| 經營活動 |
||||||||
| 淨收入 |
$ | $ | ||||||
| 調整淨收益以使其與經營活動提供的現金流量相一致： |
||||||||
| 折舊費用 |
||||||||
| 遞延和其他所得稅 |
||||||||
| 其他經營活動，淨額 |
( |
) | ( |
) | ||||
| 流動資產和負債的變化: |
||||||||
| 2,687,823 |
( |
) | ||||||
| 物料和用品 |
( |
) | ( |
) | ||||
| 其他資產 |
( |
) | ( |
) | ||||
| 應付賬款及其他流動負債 |
( |
) | ( |
) | ||||
| 所得稅及其他稅項 |
||||||||
| 經營活動產生的現金流量 |
||||||||
| 投資活動 |
||||||||
| 資本投資 |
( |
) | ( |
) | ||||
| 其他投資活動，淨額 |
( |
) | ||||||
| 投資活動使用的現金 |
( |
) | ( |
) | ||||
| 籌資活動 |
||||||||
| 分紅派息 |
( |
) | ( |
) | ||||
| 債務已償還 |
( |
) | ( |
) | ||||
| 股份回購計劃（附註16） |
( |
) | ( |
) | ||||
| 債務發行（附註14） |
||||||||
| 其他籌資活動的淨金額 |
||||||||
| 融資活動使用的現金 |
( |
) | ( |
) | ||||
| 現金、現金等價物和受限制的現金的淨變化量 |
( |
) | ( |
) | ||||
| 年初現金、現金等價物及受限制的現金餘額 |
||||||||
| 期末現金、現金等價物和受限制的現金餘額 |
$ | $ | ||||||
| 補充現金流信息 |
||||||||
| 非現金投資和籌資活動: |
||||||||
| 已計提但尚未支付的資本投資 |
$ | $ | ||||||
| 期間支付的現金用於： |
||||||||
| 所得稅，減去退款 |
$ | ( |
) | $ | ( |
) | ||
| 利息，減去已資本化的金額 |
( |
) | ( |
) | ||||
| 現金、現金等價物和受限制的現金的調節 |
||||||||
| 至合併簡明資產負債表： |
||||||||
| 現金及現金等價物 |
$ | $ | ||||||
| 其他流動資產中的受限現金等價物 |
||||||||
| 其他資產中的受限現金等價物 |
||||||||
| 如上所示的現金、現金等價物和受限現金等價物合計 |
$ | $ | ||||||
附註是這些未經審計的基本報表的一部分。
Condensed Consolidated Statements of Changes in Common Shareholders’ Equity (Unaudited)
Union Pacific Corporation and Subsidiary Companies
| 數百萬 | 普通股份。 | 庫藏股 | 普通股份。 | 資本溢價 | 未分配利潤 | 庫存股 | AOCI [a] | 總費用 | ||||||||||||||||||||||||
| 2023年7月1日的餘額 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| 淨收入 | ||||||||||||||||||||||||||||||||
| 其他綜合收益/(虧損) | ||||||||||||||||||||||||||||||||
| 轉換、股票期權行權、放棄、員工股票購買計劃以及其他 | ||||||||||||||||||||||||||||||||
| 股份回購計劃（附註16） | - | |||||||||||||||||||||||||||||||
| 已宣佈的分紅派息（$每股) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| 2023年9月30日結餘 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| 2024年7月1日的餘額 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| 淨收入 | ||||||||||||||||||||||||||||||||
| 其他綜合收益/(虧損) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| 換股、股票期權行使、沒收、員工股票購買計劃（ESPP）及其他 | ||||||||||||||||||||||||||||||||
| 股份回購計劃（附註16） | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| 已宣佈的分紅派息（$每股) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| 2024年9月30日的餘額 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| 數百萬 | 普通股份。 | 庫藏股 | 普通股份。 | 實收資本溢價 | 未分配利潤 | 庫存股 | 權益之其他綜合收益 [a] | 總費用 | ||||||||||||||||||||||||
| 2023年1月1日餘額 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| 淨收入 | ||||||||||||||||||||||||||||||||
| 其他綜合收益/(虧損) | ||||||||||||||||||||||||||||||||
| 轉換，股票期權行使，沒收，ESPP以及其他 | ||||||||||||||||||||||||||||||||
| 股份回購計劃（附註16） | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| 已宣佈的分紅派息（$每股) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| 2023年9月30日結餘 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| 2024年1月1日的餘額 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| 淨收入 | ||||||||||||||||||||||||||||||||
| 其他綜合收益/(虧損) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Conversion, 股票期權行使，放棄權利，員工股票購買計劃（ESPP），以及其他 | ||||||||||||||||||||||||||||||||
| 股份回購計劃（附註16） | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| 已宣佈的分紅派息（$每股) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| 2024年9月30日的餘額 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
| [a] |
AOCI = 累積其他全面收益/損失（附註9） |
| [b] | ESPP = 員工股票購買計劃 |
附註是這些未經審計的基本報表的一部分。
簡明財務報表註解
(未經審計)
就本報告而言，除非上下文另有規定，所有提及的"聯合太平洋"、"公司"、"企業"、"UPC"、"我們"、"我們的"均指聯合太平洋公司及其附屬公司，包括聯合太平洋鐵路公司，後文將分別簡稱爲"UPRR"或"鐵路"。
1. 報告編制基礎
我們的簡明綜合基本報表未經審計，並反映了所有調整（包括正常和重複性調整），據管理層認爲，這些調整對於按照美國通用會計準則（GAAP）公平呈現是必要的。根據證券交易委員會（SEC）的規定，按照GAAP編制的財務報表通常包括的某些信息和註釋披露已被壓縮或省略。因此，應當結合我們的綜合財務報表和註釋一起閱讀本季度報告表格 10-Q 應與我們所提供的綜合基本報表及附註一起閱讀。我們的資產負債表於此前經審計。業務運營結果爲2023 年度報告表格 10-k。我們的資產負債表截至 2023年12月31日的淨主要鑽井地點，源自經審計的財務報表。業務運營結果爲 九之額外聯邦稅項負債。 2014年9月30日， 針對…，在任何後續時期，結果可能是... 沒有 不一定代表整個截至年底的全部結果 2024年12月31日.
簡明綜合財務報表按照美國財務會計準則委員會(FASB)會計準則法規 codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 進行呈現。
2. 會計準則公告
在2019年12月， FASB於2023年12月發佈了會計準則更新"ASU" FASb發佈會計準則更新 不。 (ASU) 2023-09, 所得稅（主題 740關於所得稅披露的改進。，該要求業務實體擴大其年度有效稅率調節和所支付所得稅的披露。ASU適用於在之後開始的財政年度。 2024年12月15日， 爲了管理信用風險，管理層對客戶的財務狀況進行持續的信用評估，監測付款績效，並評估當前經濟情況，以及合理和支持未來經濟情況的預測，以及可能出現的其他情況。可以根據前瞻性或回顧性基礎被採納，並允許提前採納。公司目前正在評估新準則對我們相關披露的影響。
在2019年12月，2023年11月，FASB發佈了會計準則更新("ASU") FASB發佈了ASU2023-07, 分部報告（主題 280：報告段落披露的改進，該要求企業加強披露重要業務部門費用。該ASU適用於在之後開始的財政年度。 2023年12月15日之後開始的財政年度，所有上市實體適用，對於2024年12月15日之後開始的財政年度內中期適用。和財年開始後的中期業績 2024年12月15日之後。就業務的追溯性基礎進行，且允許提前採納。公司目前正在評估新指引對我們相關披露的影響。
3. 操作和分割
鐵路及其子公司和鐵路附屬公司是我們的報告經營部門。 雖然我們按商品組提供和分析收入，但由於鐵路網絡的綜合性質，我們將鐵路的財務業績視爲一個部門。 我們的營業收入主要來自與客戶的合同，用於運輸貨物從起點到終點。
以下表格顯示了我們貨運和其他收入的詳細分類：
| 三個月之內結束 |
九個月結束 |
|||||||||||||||
| 2020年9月30日 |
2020年9月30日 |
|||||||||||||||
| 數百萬 |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| 批發 |
$ | $ | $ | $ | ||||||||||||
| 製造業 |
||||||||||||||||
| 溢價 |
||||||||||||||||
| 貨運總收入 |
$ | $ | $ | $ | ||||||||||||
| 其他子公司收入 |
||||||||||||||||
| 附加收入 |
||||||||||||||||
| 其他 |
||||||||||||||||
| 總營收 |
$ | $ | $ | $ | ||||||||||||
儘管我們的收入主要來自美國客戶，但我們運輸的一些商品最終的起始點或目的地在美國境外。我們的每個商品組都包括往來墨西哥的運輸收入。以上表格中包含了來自我們墨西哥業務的收入，金額爲$
4. 期權薪酬
我們有幾個基於股票的補償計劃，員工會獲得未投資的股票期權、未投資的留任股份和未投資的股票單位。我們統稱未投資的股份和股票單位爲「留任獎勵」。此外，員工 可能無法完全收回的資產賬面價值。參與我們的員工股票購買計劃（ESPP）。
以下表格顯示了與股票補償支出相關的信息：
| 三個月之內結束 |
九個月結束 |
|||||||||||||||
| 2020年9月30日 |
2020年9月30日 |
|||||||||||||||
| 數百萬 |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| 期權補償，稅前： |
||||||||||||||||
| 期權 |
$ | $ | $ | $ | ||||||||||||
| 留任獎勵 |
||||||||||||||||
| ESPP |
||||||||||||||||
| 稅前股票期權補償總額 |
$ | $ | $ | $ | ||||||||||||
| 股權激勵計劃中的超額所得稅優惠 |
$ | $ | $ | $ | ||||||||||||
股票期權 期權是按授予日期收盤價授予的，具有
下表顯示了用於Black-Scholes估值目的的年加權平均假設。
| 加權平均假設 |
2024 |
2023 |
||||||
| 無風險利率 |
% | % | ||||||
| 股息率 |
% | % | ||||||
| 預計壽命（年） |
||||||||
| 波動性 |
% | % | ||||||
| 授予期權的加權平均授予日公允價值 |
$ | $ | ||||||
無風險利率基於授予時的美國國債收益率曲線；預期的分紅派息是按普通股每股分紅與授予時股價的比率計算的；預期壽命基於歷史和預期的行權行爲；預期波動率基於我們股票股價在期權預期壽命內的歷史波動率。
股票期權活動摘要 九幾個月結束了 2024 年 9 月 30 日，如下所示：
| 期權（千份） |
加權平均 |
加權平均剩餘合同期限（年） |
累積內在價值（百萬） |
|||||||||||||
| 2024年1月1日未行使的期權 |
$ | $ | ||||||||||||||
| 已行權 |
無數據 | 無數據 | ||||||||||||||
| 行使 |
( |
) | 無數據 | 無數據 | ||||||||||||
| 未流通股份數量 2023年9月30日時的未流通股份數 |
( |
) | 無數據 | 無數據 | ||||||||||||
| 截至2024年9月30日應收款項 |
$ | $ | ||||||||||||||
| 已授予或預計將在2024年9月30日授予 |
$ | $ | ||||||||||||||
| Options exercisable at September 30, 2024 |
$ | $ | ||||||||||||||
在 2014年9月30日，有$元。
| 三個月之內結束 |
九個月結束 |
|||||||||||||||
| 2020年9月30日 |
2020年9月30日 |
|||||||||||||||
| 數百萬 |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| 股票期權行權的內在價值 |
$ | $ | $ | $ | ||||||||||||
| 期權行權所得現金 |
||||||||||||||||
| 公司購回國庫股份，用於支付員工工資稅 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 通過期權行權實現的所得稅收益 |
||||||||||||||||
| 股票期權授予日公允價值的累計發放 |
||||||||||||||||
員工可免費獲得留任獎勵 否 最長持續時間爲數年
在此期間我們的滯留獎勵發生了變化 九之額外聯邦稅項負債。 2014年9月30日，如下所示：
| 假設本說明書所涵蓋的所有普通股均已出售完成，在2023年11月29日發行和流通的普通股數量的基礎之上，假設所有股票均購買，假定銷售股東將擁有的所有已發行普通股的百分比 |
加權平均 |
|||||||
| 2024年1月1日的非維持 |
$ | |||||||
| 已行權 |
||||||||
| 34,105 |
( |
) | ||||||
| 被取消 |
( |
) | ||||||
| 2024年9月30日的未投資股 |
$ | |||||||
在 2024 年 9 月 30 日，有 $
績效股票單位獎勵 董事會批准了業績股權單位授予計劃。該計劃基於年度投資資本回報率（ROIC）和營業利潤增長（OIG）的績效目標，與標準普爾指數工業指數及一級鐵路公司相比。我們將ROIC定義爲淨營業利潤經過利息支出調整（包括平均經營租賃負債利息）和利息稅後除以平均經調整的投資資本和平均經營租賃負債。 二月份 2024董事會批准了業績股權單位授予計劃。該計劃基於年度投資資本回報率（ROIC）和營業利潤增長（OIG）的績效目標，與標準普爾指數工業指數及一級鐵路公司相比。我們將ROIC定義爲淨營業利潤經過利息支出調整（包括平均經營租賃負債利息）和利息稅後除以平均經調整的投資資本和平均經營租賃負債。 100 董事會批准了業績股權單位授予計劃。該計劃基於年度投資資本回報率（ROIC）和營業利潤增長（OIG）的績效目標，與標準普爾指數工業指數及一級鐵路公司相比。我們將ROIC定義爲淨營業利潤經過利息支出調整（包括平均經營租賃負債利息）和利息稅後除以平均經調整的投資資本和平均經營租賃負債。
我們績效股本單元獎勵的變化 九之額外聯邦稅項負債。 2014年9月30日，如下所示：
| 假設本說明書所涵蓋的所有普通股均已出售完成，在2023年11月29日發行和流通的普通股數量的基礎之上，假設所有股票均購買，假定銷售股東將擁有的所有已發行普通股的百分比 |
加權平均 |
|||||||
| 2024年1月1日的非維持 |
$ | |||||||
| 已行權 |
||||||||
| 34,105 |
( |
) | ||||||
| 這些單位 |
( |
) | ||||||
| 被取消 |
( |
) | ||||||
| 2024年9月30日的未投資股 |
$ | |||||||
在 2014年9月30日，有$元。
5. 養老計劃
我們通過符合和非符合（補充）養老金計劃向符合條件的非工會員工提供明確的養老收入。符合和非符合養老金福利基於服務年限和最近僱傭年限內的最高薪酬，對提前退休進行特定的減少。自2018年1月1日或之後僱傭的非工會員工不再有資格獲得養老金福利，但有資格參加增強版的401(k)計劃。 2018年1月1日之後僱傭的非工會員工不再有資格獲得養老金福利，但有資格參加增強版的401(k)計劃。 在損益表中確認。 否 （k）計劃。 401（k）計劃。
百萬美元變化 2Q24 vs。
養老金費用是根據福利的年度服務成本（在期間內獲得的福利的精算成本）和這些責任的利息成本，減去計劃資產的預期回報。預計計劃資產的長期回報率應用於承認在一段計劃資產價值變化中的計算值，
我們的淨週期性養老金福利/成本的元件如下:
| 三個月之內結束 |
九個月結束 |
|||||||||||||||
| 2020年9月30日 |
2020年9月30日 |
|||||||||||||||
| 數百萬 |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| 服務成本 |
$ | $ | $ | $ | ||||||||||||
| 利息費用 |
||||||||||||||||
| 計劃資產預期回報 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 攤銷精算虧損 |
||||||||||||||||
| 淨週期性養老金（利益）/成本 |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
現金捐贈
截至九之額外聯邦稅項負債。 2014年9月30日現金捐款總額爲$
6. 其他收入
其他收入包括以下內容：
| 三個月之內結束 |
九個月結束 |
|||||||||||||||
| 2020年9月30日 |
2020年9月30日 |
|||||||||||||||
| 數百萬 |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| 房地產業收入 [a] |
$ | $ | $ | $ | ||||||||||||
| 淨週期性養老金福利/(成本) |
||||||||||||||||
| 利息來自IRS退稅索賠 |
||||||||||||||||
| 非運營性物業環保母基治理和恢復 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 其他 |
||||||||||||||||
| 總費用 |
$ | $ | $ | $ | ||||||||||||
| [a] | 本基金尋求於東歐地區註冊的主要權益關聯發行人的長期升值投資。九月份結束時 截至2023年9月30日 包括一個 之一-時間 $ |
7.百萬美元
在第三第 季度可能發生融資交易，因此以相應地實際獲得的總額爲基礎在該模型中使用股票價格進行調整。2023, 愛荷華州、堪薩斯州和阿肯色州制定了法律，以降低未來幾年的企業所得稅率，從而導致我們的遞延稅費減少$
在第二個第 季度可能發生融資交易，因此以相應地實際獲得的總額爲基礎在該模型中使用股票價格進行調整。2024, 阿肯色州制定了法律，以降低未來幾年的企業所得稅率，從而導致我們的遞延稅費減少了$
在第二個第 季度可能發生融資交易，因此以相應地實際獲得的總額爲基礎在該模型中使用股票價格進行調整。2023, 內布拉斯加州通過立法，以降低未來年度的企業所得稅率，導致我們遞延稅款支出減少$
8. 每股收益
以下表格顯示了基本每股收益和稀釋每股收益之間的調節：
| 三個月之內結束 |
九個月結束 |
|||||||||||||||
| 2020年9月30日 |
2020年9月30日 |
|||||||||||||||
| 百萬，除每股金額外 |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| 淨收入 |
$ | $ | $ | $ | ||||||||||||
| 加權平均外流通股數： |
||||||||||||||||
| 基本 |
||||||||||||||||
| 期權的稀釋效應 |
||||||||||||||||
| 留存股份和單位的攤薄效應 |
||||||||||||||||
| 稀釋的 |
||||||||||||||||
| 基本每股收益 |
$ | $ | $ | $ | ||||||||||||
| 每股收益（攤薄） |
$ | $ | $ | $ | ||||||||||||
| 期權被排除在外，因爲包含它們會對攤薄產生反作用 |
||||||||||||||||
9. 累計其他綜合收益/損失
從累積其他全面收益/損失中重新分類的情況如下（稅後）：
| 數百萬 | 確定福利計劃 | 外幣翻譯 | 衍生工具未實現盈利 [a] | 總費用 | ||||||||||||
| 2024年7月1日的餘額 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| 可重新分類之其他綜合收益/(虧損)前 | ( | ) | ( | ) | ||||||||||||
| 從累計其他綜合收益/(損失)重新分類的金額 [b] | ||||||||||||||||
| 本季截至今日其他綜合收益/損失，稅後淨額爲$百萬 | ( | ) | ( | ) | ||||||||||||
| 2024年9月30日的餘額 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| 2023年7月1日的餘額 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| 可重新分類之其他綜合收益/(虧損)前 | ( | ) | ||||||||||||||
| 從累計其他綜合收益/損失中重新分類的金額[b] | ( | ) | ( | ) | ||||||||||||
| 本季截至今日其他綜合收益/損失，稅後淨額爲($萬 | ( | ) | ||||||||||||||
| 2023年9月30日結餘 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| [a] |
Related to interest rate swaps from equity method investments.
|
| [b] |
The accumulated other comprehensive income/loss reclassification components are 1) prior service cost/credit and 2) net actuarial loss, which are both included in the computation of net periodic pension benefit/cost. See Note 5 Retirement Plans for additional details.
|
| Millions | Defined benefit plans | Foreign currency translation | Unrealized gain on derivative instruments [a] | Total | ||||||||||||
| Balance at January 1, 2024 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| Other comprehensive income/(loss) before reclassifications | ( | ) | ( | ) | ||||||||||||
| Amounts reclassified from accumulated other comprehensive income/(loss) [b] | ( | ) | ( | ) | ||||||||||||
| Net year-to-date other comprehensive income/(loss), net of taxes of $ million | ( | ) | ( | ) | ||||||||||||
| Balance at September 30, 2024 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| Balance at January 1, 2023 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| Other comprehensive income/(loss) before reclassifications | ||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income/(loss) [b] | ( | ) | ( | ) | ||||||||||||
| Net year-to-date other comprehensive income/(loss), net of taxes of ($) million | ||||||||||||||||
| Balance at September 30, 2023 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
| [a] | Related to interest rate swaps from equity method investments. |
| [b] | The accumulated other comprehensive income/loss reclassification components are 1) prior service cost/credit and 2) net actuarial loss, which are both included in the computation of net periodic pension benefit/cost. See Note 5 Retirement Plans for additional details. |
10. Accounts Receivable
Accounts receivable include freight and other receivables reduced by an allowance for doubtful accounts. At both September 30, 2024, and December 31, 2023, our accounts receivable were reduced by $
Receivables Securitization Facility – The Railroad maintains an $
The amount recorded under the Receivables Facility was $
The outstanding amount the Railroad maintains under the Receivables Facility may fluctuate based on current cash needs. The maximum allowed under the Receivables Facility is $
11. Properties
The following tables list the major categories of property and equipment, as well as the weighted-average estimated useful life for each category (in years):
| Millions, Except Estimated Useful Life |
Accumulated |
Net Book |
Estimated |
|||||||||||||
| As of September 30, 2024 |
Cost |
Depreciation |
Value |
Useful Life |
||||||||||||
| Land |
$ | N/A | $ | N/A | ||||||||||||
| Road: |
||||||||||||||||
| Rail and other track material |
||||||||||||||||
| Ties |
||||||||||||||||
| Ballast |
||||||||||||||||
| Other roadway [a] |
||||||||||||||||
| Total road |
N/A | |||||||||||||||
| Equipment: |
||||||||||||||||
| Locomotives |
||||||||||||||||
| Freight cars |
||||||||||||||||
| Work equipment and other [b] |
||||||||||||||||
| Total equipment |
N/A | |||||||||||||||
| Technology and other |
||||||||||||||||
| Construction in progress |
N/A | |||||||||||||||
| Total |
$ | $ | $ | N/A | ||||||||||||
| Millions, Except Estimated Useful Life |
Accumulated |
Net Book |
Estimated |
|||||||||||||
| As of December 31, 2023 |
Cost |
Depreciation |
Value |
Useful Life |
||||||||||||
| Land |
$ | $ | N/A | $ | N/A | |||||||||||
| Road: |
||||||||||||||||
| Rail and other track material |
||||||||||||||||
| Ties |
||||||||||||||||
| Ballast |
||||||||||||||||
| Other roadway [a] |
||||||||||||||||
| Total road |
N/A | |||||||||||||||
| Equipment: |
||||||||||||||||
| Locomotives |
||||||||||||||||
| Freight cars |
||||||||||||||||
| Work equipment and other |
||||||||||||||||
| Total equipment |
N/A | |||||||||||||||
| Technology and other |
||||||||||||||||
| Construction in progress |
N/A | |||||||||||||||
| Total |
$ | $ | $ | N/A | ||||||||||||
| [a] | Other roadway includes grading, bridges and tunnels, signals, buildings, and other road assets. |
| [b] | For retirements of depreciable railroad properties that do not occur in the normal course of business, a gain or loss may be recognized if the retirement meets each of the following three conditions: (a) is unusual, (b) is material in amount, and (c) varies significantly from the retirement profile identified through our depreciation studies. In the second quarter of 2024, we sold a large portion of an intermodal equipment asset class resulting in a $ |
12. Accounts Payable and Other Current Liabilities
| Sep. 30, |
Dec. 31, |
|||||||
| Millions |
2024 |
2023 |
||||||
| Accounts payable |
$ | $ | ||||||
| Income and other taxes payable |
||||||||
| Compensation-related accruals |
||||||||
| Accrued casualty costs |
||||||||
| Current operating lease liabilities |
||||||||
| Interest payable |
||||||||
| Equipment rents payable |
||||||||
| Other |
||||||||
| Total accounts payable and other current liabilities |
$ | $ | ||||||
13. Financial Instruments
Short-Term Investments – All of the Company's short-term investments consist of time deposits and government agency securities. These investments are considered Level 2 investments and are valued at amortized cost, which approximates fair value. As of September 30, 2024, and December 31, 2023, the Company had $
Fair Value of Financial Instruments – The fair value of our short- and long-term debt was estimated using a market value price model, which utilizes applicable U.S. Treasury rates along with current market quotes on comparable debt securities. All of the inputs used to determine the fair market value of the Corporation’s long-term debt are Level 2 inputs and obtained from an independent source. At September 30, 2024, the fair value of total debt was $
14. Debt
Credit Facilities – At September 30, 2024, we had $
During the nine months ended September 30, 2024, we issued $
Shelf Registration Statement and Significant New Borrowings – We filed an automatic shelf registration statement with the SEC that became effective on February 13, 2024. The Board of Directors authorized the issuance of up to $
During the nine months ended September 30, 2024, we did issue any debt securities under this registration statement. At September 30, 2024, we had remaining authority from the Board of Directors to issue up to $
Receivables Securitization Facility – As of both September 30, 2024, and December 31, 2023, we recorded $
15. Commitments and Contingencies
Asserted and Unasserted Claims – Various claims and lawsuits are pending against us and certain of our subsidiaries. We cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations, financial condition, or liquidity. We have recorded a liability where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated. We currently do not expect that any known lawsuits, claims, environmental costs, commitments, contingent liabilities, or guarantees will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters.
In December 2019, we received a putative class action complaint under the Illinois Biometric Information Privacy Act, alleging violation due to the use of a finger scan system developed and managed by third-parties. Union Pacific and the plaintiff are currently in the discovery phase. While we believe that we have strong defenses to the claims made in the complaint and will vigorously defend ourselves, there is no assurance regarding the ultimate outcome. Therefore, the outcome of this litigation is inherently uncertain, and we cannot reasonably estimate any loss or range of loss that may arise from this matter.
Personal Injury – The Federal Employers’ Liability Act (FELA) governs compensation for work-related accidents. Under FELA, damages are assessed based on a finding of fault through litigation or out-of-court settlements. We offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work.
Approximately
Our personal injury liability activity was as follows:
| Millions, for the Nine Months Ended September 30, |
2024 |
2023 |
||||||
| Beginning balance |
$ | $ | ||||||
| Current year accruals |
||||||||
| Changes in estimates for prior years |
( |
) | ||||||
| Payments |
( |
) | ( |
) | ||||
| Ending balance at September 30, |
$ | $ | ||||||
| Current portion, ending balance at September 30, |
$ | $ | ||||||
Environmental Costs – We are subject to federal, state, and local environmental laws and regulations. We have identified
Our environmental liability activity was as follows:
| Millions, for the Nine Months Ended September 30, |
2024 |
2023 |
||||||
| Beginning balance |
$ | $ | ||||||
| Accruals |
||||||||
| Payments |
( |
) | ( |
) | ||||
| Ending balance at September 30, |
$ | $ | ||||||
| Current portion, ending balance at September 30, |
$ | $ | ||||||
The environmental liability includes future costs for remediation and restoration of sites, as well as ongoing monitoring costs, but excludes any anticipated recoveries from third-parties. Cost estimates are based on information available for each site, financial viability of other potentially responsible parties, and existing technology, laws, and regulations. The ultimate liability for remediation is difficult to determine because of the number of potentially responsible parties, site-specific cost sharing arrangements with other potentially responsible parties, the degree of contamination by various wastes, the scarcity and quality of volumetric data related to many of the sites, and the speculative nature of remediation costs. Estimates of liability may vary over time due to changes in federal, state, and local laws governing environmental remediation. Current obligations are not expected to have a material adverse effect on our consolidated results of operations, financial condition, or liquidity.
Indemnities – Our maximum potential exposure under indemnification arrangements, including certain tax indemnifications, can range from a specified dollar amount to an unlimited amount, depending on the nature of the transactions and the agreements. Due to uncertainty as to whether claims will be made or how they will be resolved, we cannot reasonably determine the probability of an adverse claim or reasonably estimate any adverse liability or the total maximum exposure under these indemnification arrangements. We do not have any reason to believe that we will be required to make any material payments under these indemnity provisions.
16. Share Repurchase Programs
Effective April 1, 2022, our Board of Directors authorized the repurchase of up to
The table below represents shares repurchased under repurchase programs in the nine months ended September 30, 2024 and 2023:
| Number of Shares Purchased |
Average Price Paid |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| First quarter |
$ | $ | ||||||||||||||
| Second quarter |
||||||||||||||||
| Third quarter |
||||||||||||||||
| Total |
$ | $ | ||||||||||||||
| Remaining number of shares that may be repurchased under current authority |
||||||||||||||||
Management's assessments of market conditions and other pertinent factors guide the timing, manner, and volume of all repurchases. We expect to fund any share repurchases under this program through cash generated from operations, the sale or lease of various operating and non-operating properties, debt issuances, and cash on hand. Open market repurchases are recorded in treasury stock at cost, which includes any applicable commissions, fees, and excise taxes.
17. Related Parties
UPRR and other North American railroad companies jointly own TTX Company (TTX). UPRR has a
TTX is a rail car pooling company that owns rail cars and intermodal wells to serve North America’s railroads. TTX assists railroads in meeting the needs of their customers by providing rail cars in an efficient, pooled environment. All railroads may utilize TTX rail cars through car hire by renting rail cars at stated rates.
UPRR had $
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
RESULTS OF OPERATIONS
Three and Nine Months Ended September 30, 2024, Compared to
Three and Nine Months Ended September 30, 2023
For purposes of this report, unless the context otherwise requires, all references herein to "Union Pacific", “UPC”, “Corporation”, “Company”, “we”, “us”, and “our” shall mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which we separately refer to as “UPRR” or the “Railroad”.
The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements and applicable notes to the Condensed Consolidated Financial Statements, Item 1, and other information included in this report. Our Condensed Consolidated Financial Statements are unaudited and reflect all adjustments (consisting only of normal and recurring adjustments) that are, in the opinion of management, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (GAAP).
The Railroad, along with its subsidiaries and rail affiliates, is our one reportable business segment. Although revenues are analyzed by commodity, we analyze the net financial results of the Railroad as one segment due to the integrated nature of the rail network.
Critical Accounting Estimates
The preparation of these financial statements requires estimation and judgment that affect the reported amounts of revenues, expenses, assets, and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. If these estimates differ materially from actual results, the impact on the Condensed Consolidated Financial Statements may be material. Our critical accounting estimates are available in Item 7 of our 2023 Annual Report on Form 10-K. During the first nine months of 2024, there have not been any significant changes with respect to our critical accounting estimates.
RESULTS OF OPERATIONS
Quarterly Summary
The Company reported earnings of $2.75 per diluted share on net income of $1.7 billion and an operating ratio of 60.3% in the third quarter of 2024 compared to earnings of $2.51 per diluted share on net income of $1.5 billion and an operating ratio of 63.4% for the third quarter of 2023. Freight revenues increased 4% in the third quarter of 2024 compared to the same period in 2023 driven by 6% volume increase and core pricing gains, partially offset by negative mix (for example, a relative increase in international intermodal shipments, which have a lower average revenue per car (ARC)) and lower fuel surcharge revenues. Volume increases were primarily driven by international intermodal and grain, partially offset by weaker demand for coal and rock shipments.
During the third quarter of 2024 our network absorbed the additional volume including a surge in international intermodal business, which increased 33% compared to last year. As volume increased, crews and locomotives were strategically integrated into the network to efficiently handle the growth. As a result, most of our operating metrics improved compared to the third quarter of 2023. Both freight car velocity and locomotive productivity improved 5% compared to the third quarter of 2023. Workforce productivity improved 12% as our total train, engine, and yard (TE&Y) employees were flat year-over-year while the remainder of our workforce declined 8%. Our TE&Y training pipeline declined 6% year-over-year demonstrating a shift to additional active employees to cover increased needs associated with fewer available workdays because of sick leave benefits and work/rest agreements (labor agreements) and increased volume. Manifest/automotive service performance index, intermodal service performance index, and train length, all improved from the third quarter of 2023.
Operating expenses decreased 2% compared to the third quarter of 2023 due to productivity, lower fuel prices, and a 2023 write-off. These decreases were partially offset by inflation, volume-related costs, and higher depreciation. Operating income of $2.4 billion increased 11%, and our operating ratio of 60.3% improved 3.1 points from the third quarter of 2023.
Operating Revenues
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
| September 30, |
September 30, |
|||||||||||||||||||||||
| Millions |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||
| Freight revenues |
$ | 5,768 | $ | 5,545 | 4 | % | $ | 17,022 | $ | 16,770 | 2 | % | ||||||||||||
| Other subsidiary revenues |
179 | 226 | (21 | ) | 608 | 681 | (11 | ) | ||||||||||||||||
| Accessorial revenues |
122 | 142 | (14 | ) | 427 | 442 | (3 | ) | ||||||||||||||||
| Other |
22 | 28 | (21 | ) | 72 | 67 | 7 | |||||||||||||||||
| Total |
$ | 6,091 | $ | 5,941 | 3 | % | $ | 18,129 | $ | 17,960 | 1 | % | ||||||||||||
We generate freight revenues by transporting products from our three commodity groups. Freight revenues vary with volume (carloads) and ARC. Changes in price, traffic mix, and fuel surcharges drive ARC. Customer incentives, which are primarily provided for shipping to/from specific locations or based on cumulative volumes, are recorded as a reduction to operating revenues. Customer incentives that include variable consideration based on cumulative volumes are estimated using the expected value method, which is based on available historical, current, and forecasted volumes, and recognized as the related performance obligation is satisfied. We recognize freight revenues over time as shipments move from origin to destination. The allocation of revenues between reporting periods is based on the relative transit time in each reporting period with expenses recognized as incurred.
Other subsidiary revenues (primarily logistics and commuter rail operations) are generally recognized over time as shipments move from origin to destination. The allocation of revenues between reporting periods is based on the relative transit time in each reporting period with expenses recognized as incurred. Accessorial revenues are recognized at a point in time as performance obligations are satisfied.
Freight revenues increased 4% in the third quarter of 2024 compared to the same period in 2023 driven by a 6% volume increase and core pricing gains, partially offset by negative mix (for example, a relative increase in international intermodal shipments, which have a lower ARC) and lower fuel surcharge revenues. Volume increases were primarily driven by international intermodal and grain, partially offset by weaker demand for coal and rock shipments.
Each of our commodity groups includes revenues from fuel surcharges. Freight revenues from fuel surcharge programs decreased $2 million to $635 million in the third quarter of 2024 compared to $637 million in the same period of 2023 due to lower fuel prices, partially offset by the lag impact on fuel prices (it can generally take up to two months for changing fuel prices to affect fuel surcharge recoveries), and higher volume.
Other subsidiary revenues decreased in the third quarter and nine-month periods of 2024 compared to 2023 primarily driven by a weaker demand for intermodal shipments at our subsidiary that brokers intermodal and transload logistics services and the partial transfer of our commuter operations to Metra. Accessorial revenues decreased in the third quarter and nine-month periods of 2024 compared to 2023 driven by lower intermodal accessorial revenues as a result of our intermodal equipment sale. In addition, the year-to-date period was positively impacted by a one-time contract settlement in the first quarter of 2024.
The following tables summarize the year-over-year changes in freight revenues, revenue carloads, and ARC by commodity type:
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
| Freight Revenues |
September 30, |
September 30, |
||||||||||||||||||||||
| Millions |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||
| Grain & grain products |
$ | 923 | $ | 825 | 12 | % | $ | 2,767 | $ | 2,658 | 4 | % | ||||||||||||
| Fertilizer |
208 | 194 | 7 | 612 | 563 | 9 | ||||||||||||||||||
| Food & refrigerated |
269 | 259 | 4 | 832 | 777 | 7 | ||||||||||||||||||
| Coal & renewables |
405 | 488 | (17 | ) | 1,132 | 1,422 | (20 | ) | ||||||||||||||||
| Bulk |
1,805 | 1,766 | 2 | 5,343 | 5,420 | (1 | ) | |||||||||||||||||
| Industrial chemicals & plastics |
598 | 557 | 7 | 1,763 | 1,638 | 8 | ||||||||||||||||||
| Metals & minerals |
529 | 556 | (5 | ) | 1,574 | 1,654 | (5 | ) | ||||||||||||||||
| Forest products |
322 | 333 | (3 | ) | 1,002 | 1,012 | (1 | ) | ||||||||||||||||
| Energy & specialized markets |
672 | 611 | 10 | 2,009 | 1,856 | 8 | ||||||||||||||||||
| Industrial |
2,121 | 2,057 | 3 | 6,348 | 6,160 | 3 | ||||||||||||||||||
| Automotive |
601 | 609 | (1 | ) | 1,871 | 1,821 | 3 | |||||||||||||||||
| Intermodal |
1,241 | 1,113 | 12 | 3,460 | 3,369 | 3 | ||||||||||||||||||
| Premium |
1,842 | 1,722 | 7 | 5,331 | 5,190 | 3 | ||||||||||||||||||
| Total |
$ | 5,768 | $ | 5,545 | 4 | % | $ | 17,022 | $ | 16,770 | 2 | % | ||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
| Revenue Carloads |
September 30, |
September 30, |
||||||||||||||||||||||
| Thousands |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||
| Grain & grain products |
206 | 183 | 13 | % | 616 | 582 | 6 | % | ||||||||||||||||
| Fertilizer |
53 | 51 | 4 | 162 | 144 | 13 | ||||||||||||||||||
| Food & refrigerated |
45 | 45 | - | 137 | 133 | 3 | ||||||||||||||||||
| Coal & renewables |
192 | 231 | (17 | ) | 527 | 650 | (19 | ) | ||||||||||||||||
| Bulk |
496 | 510 | (3 | ) | 1,442 | 1,509 | (4 | ) | ||||||||||||||||
| Industrial chemicals & plastics |
169 | 163 | 4 | 502 | 484 | 4 | ||||||||||||||||||
| Metals & minerals |
186 | 206 | (10 | ) | 540 | 604 | (11 | ) | ||||||||||||||||
| Forest products |
53 | 54 | (2 | ) | 161 | 161 | - | |||||||||||||||||
| Energy & specialized markets |
152 | 146 | 4 | 453 | 429 | 6 | ||||||||||||||||||
| Industrial |
560 | 569 | (2 | ) | 1,656 | 1,678 | (1 | ) | ||||||||||||||||
| Automotive |
202 | 210 | (4 | ) | 627 | 623 | 1 | |||||||||||||||||
| Intermodal [a] |
909 | 763 | 19 | 2,446 | 2,246 | 9 | ||||||||||||||||||
| Premium |
1,111 | 973 | 14 | 3,073 | 2,869 | 7 | ||||||||||||||||||
| Total |
2,167 | 2,052 | 6 | % | 6,171 | 6,056 | 2 | % | ||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
| September 30, |
September 30, |
|||||||||||||||||||||||
| Average Revenue per Car |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||
| Grain & grain products |
$ | 4,498 | $ | 4,486 | - | % | $ | 4,495 | $ | 4,563 | (1 | )% | ||||||||||||
| Fertilizer |
3,872 | 3,818 | 1 | 3,775 | 3,921 | (4 | ) | |||||||||||||||||
| Food & refrigerated |
6,099 | 5,847 | 4 | 6,090 | 5,850 | 4 | ||||||||||||||||||
| Coal & renewables |
2,101 | 2,114 | (1 | ) | 2,147 | 2,187 | (2 | ) | ||||||||||||||||
| Bulk |
3,641 | 3,465 | 5 | 3,706 | 3,592 | 3 | ||||||||||||||||||
| Industrial chemicals & plastics |
3,534 | 3,406 | 4 | 3,509 | 3,381 | 4 | ||||||||||||||||||
| Metals & minerals |
2,847 | 2,688 | 6 | 2,918 | 2,736 | 7 | ||||||||||||||||||
| Forest products |
6,157 | 6,197 | (1 | ) | 6,235 | 6,305 | (1 | ) | ||||||||||||||||
| Energy & specialized markets |
4,415 | 4,201 | 5 | 4,431 | 4,331 | 2 | ||||||||||||||||||
| Industrial |
3,791 | 3,612 | 5 | 3,833 | 3,671 | 4 | ||||||||||||||||||
| Automotive |
2,968 | 2,894 | 3 | 2,983 | 2,921 | 2 | ||||||||||||||||||
| Intermodal [a] |
1,365 | 1,459 | (6 | ) | 1,414 | 1,500 | (6 | ) | ||||||||||||||||
| Premium |
1,657 | 1,769 | (6 | ) | 1,735 | 1,809 | (4 | ) | ||||||||||||||||
| Average |
$ | 2,662 | $ | 2,702 | (1 | )% | $ | 2,758 | $ | 2,769 | - | % | ||||||||||||
| [a] |
For intermodal shipments each container or trailer equals one carload. |
Bulk – Bulk includes shipments of grain and grain products, fertilizer, food and refrigerated, and coal and renewables. Freight revenues from bulk shipments increased in the third quarter of 2024 compared to 2023 due to a positive mix of traffic from decreased coal shipments and core pricing gains, partially offset by a decline in volume. Volume declines were driven by reduced use of coal in electricity generation because of low natural gas prices, partially offset by strength in export grain and several other grain commodities. Year-to-date, freight revenues decreased compared to the same period in 2023 due to decreased volume and lower fuel surcharge revenues, partially offset by a positive mix of traffic and core pricing gains. Year-to-date, coal volumes were negatively impacted by mild winter weather in addition to reduced coal usage, partially offset by first quarter 2023 outages and service challenges due to repeated snow events in Wyoming that negatively impacted coal volumes. Additionally, the volume declines in the year-to-date period were partially offset by increased fertilizer shipments in the second quarter of 2024 due to strong demand and a 2023 customer outage.
Industrial – Industrial includes shipments of industrial chemicals and plastics, metals and minerals, forest products, and energy and specialized markets. Freight revenues from industrial shipments increased in the third quarter and nine-month periods of 2024 compared to 2023 due to core pricing gains and positive mix of traffic from decreased short haul rock shipments and higher soda ash shipments, partially offset by volume declines and lower fuel surcharge revenues. Volume decreases in both periods of 2024 compared to 2023 were driven by lower demand for rock, due to weather, high inventories, and softness in Southern markets, partially offset by strength in petroleum, plastics, and industrial chemicals.
Premium – Premium includes shipments of finished automobiles, automotive parts, and merchandise in intermodal containers, both domestic and international. Premium freight revenues increased in the third quarter and nine-month periods of 2024 compared to 2023 due to increased volume and core pricing gains, partially offset by lower fuel surcharge revenues and negative mix. In the third quarter of 2024, international intermodal experienced heavy demand due to increased U.S. West Coast imports, a result of freight shifted from the East Coast and Canadian ports due to uncertainty related to labor negotiations, driving volume up 33% compared to the third quarter 2023. In addition, business development efforts in domestic intermodal drove volume growth in both periods of 2024 compared to 2023. Finished automotive shipments increased in the year-to-date period of 2024 compared to 2023 driven by business development wins, partially offset by unplanned production decreases.
Mexico Business – Each of our commodity groups includes revenues from shipments to and from Mexico. Revenues from Mexico business increased 7% to $724 million in the third quarter of 2024 compared to 2023 driven by a 2% volume increase and a 5% increase in ARC. Year-to-date, revenues from Mexico business increased 9% compared to the same period in 2023 driven by a 4% volume increase and a 5% increase in ARC. Volume increases in both periods were driven by higher grain, partially offset by lower automotive parts shipments. In addition, increased finished automotive shipments contributed to the year-to-date volume growth.
Operating Expenses
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
| September 30, |
September 30, |
|||||||||||||||||||||||
| Millions |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||
| Compensation and benefits |
$ | 1,228 | $ | 1,201 | 2 | % | $ | 3,638 | $ | 3,649 | - | % | ||||||||||||
| Purchased services and materials |
644 | 668 | (4 | ) | 1,901 | 1,971 | (4 | ) | ||||||||||||||||
| Fuel |
610 | 702 | (13 | ) | 1,893 | 2,132 | (11 | ) | ||||||||||||||||
| Depreciation |
602 | 580 | 4 | 1,792 | 1,729 | 4 | ||||||||||||||||||
| Equipment and other rents |
237 | 235 | 1 | 672 | 718 | (6 | ) | |||||||||||||||||
| Other |
354 | 378 | (6 | ) | 1,045 | 1,086 | (4 | ) | ||||||||||||||||
| Total |
$ | 3,675 | $ | 3,764 | (2 | )% | $ | 10,941 | $ | 11,285 | (3 | )% | ||||||||||||
Operating expenses decreased in the third quarter and nine-month periods of 2024 compared to 2023 driven by productivity, lower fuel prices, and a 2023 write-off. These decreases were partially offset by inflation, volume-related costs, and higher depreciation. Additionally, year-to-date, the 2023 labor agreement ratification charge, a gain on the sale of intermodal equipment in 2024, and lower weather-related costs from less impactful winter weather in the first quarter of 2024 compared to 2023, positively impacted the year-over-year comparison.
Compensation and Benefits – Compensation and benefits include wages, payroll taxes, health and welfare costs, pension costs, and incentive costs. For the third quarter of 2024, expense increased 2% compared to 2023 due to wage inflation, partially offset by lower employee levels. Year-to-date expense was flat as the 2023 labor agreement ratification charge and lower employee levels in 2024 offset wage inflation and increased crew needs associated with labor agreements and volume.
Fuel – Fuel includes locomotive fuel and gasoline for highway and non-highway vehicles and heavy equipment. Fuel expense decreased in the third quarter of 2024 compared to the same period in 2023 driven by a decrease in locomotive diesel fuel prices, partially offset by an increase in gross ton-miles and a 1% increase in the fuel consumption rate (computed as gallons of fuel consumed divided by gross ton-miles in thousands). Locomotive diesel fuel prices averaged $2.60 and $3.12 per gallon (including taxes and transportation costs) in the third quarter of 2024 and 2023, respectively. Year-to-date, fuel expense decreased driven by lower locomotive diesel fuel prices, which averaged $2.71 compared to $3.07 per gallon in the same period of 2023, and a slight improvement in the fuel consumption rate, partially offset by increased gross ton-miles.
Purchased Services and Materials – Expense for purchased services and materials includes the costs of services purchased from outside contractors and other service providers (including equipment maintenance and contract expense incurred by our subsidiaries for external transportation services); materials used to maintain the Railroad’s lines, structures, and equipment; costs of operating facilities jointly used by UPRR and other railroads; transportation and lodging for train crew employees; trucking and contracting costs for intermodal containers; leased automobile maintenance expense; and tools and supplies. Purchased services and materials decreased 4% in both periods of 2024 compared to 2023, primarily due to declines in our active locomotive fleet as productivity improved in both periods and decreased volume-related drayage cost incurred at one of our subsidiaries, partially offset by inflation and volume-related costs. In addition, the year-to-date period was positively impacted by a contract settlement.
Depreciation – The majority of depreciation relates to road property, including rail, ties, ballast, and other track material. Depreciation expense was up 4% for both periods of 2024 compared to 2023, driven by a higher depreciable asset base.
Equipment and Other Rents – Equipment and other rents expense primarily includes rental expense that the Railroad pays for freight cars owned by other railroads or private companies; freight car, intermodal, and locomotive leases; and office and other rent expense, offset by equity income from certain equity method investments. Equipment and other rents expense increased 1% in the third quarter of 2024 compared to 2023, driven by inflation and increased demand in commodities utilizing freight cars owned by others, partially offset by lower lease expense. Year-to-date expense decreased 6% compared to the same period of 2023, driven by lower lease expense and improved cycle times, partially offset by increased demand in commodities utilizing freight cars owned by others and inflation.
Other – Other expense includes state and local taxes; freight, equipment, and property damage; utilities; insurance; personal injury; environmental remediation; employee travel; telephone and cellular; computer software; bad debt; and other general expenses. Other expense decreased 6% and 4% in the third quarter and nine-month period of 2024 compared to 2023, respectively, driven by lower personal injury costs and a 2023 write-off, partially offset by higher freight loss and damage, and other casualty costs. Additionally, year-to-date expense was lower due to a gain on the sale of intermodal equipment in the second quarter of 2024.
Non-Operating Items
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
| September 30, |
September 30, |
|||||||||||||||||||||||
| Millions |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||||||||||||||||
| Other income, net |
$ | 87 | $ | 106 | (18 | )% | $ | 282 | $ | 383 | (26 | )% | ||||||||||||
| Interest expense |
(314 | ) | (334 | ) | (6 | ) | (957 | ) | (1,009 | ) | (5 | ) | ||||||||||||
| Income tax expense |
(518 | ) | (421 | ) | 23 | (1,528 | ) | (1,322 | ) | 16 | ||||||||||||||
Other Income, net – Other income decreased in the third quarter of 2024 compared to 2023 driven by lower real estate income. Year-to-date, other income decreased due to a one-time $107 million real estate transaction in 2023, partially offset by interest received in 2024 from the IRS on refund claims.
Interest Expense – Interest expense decreased in the third quarter and year-to-date periods of 2024 compared to 2023 due to a decreased weighted-average debt level. The weighted-average debt levels were $31.4 billion and $31.8 billion in the third quarter and year-to-date periods of 2024, respectively, compared to $33.0 billion and $33.3 billion in the same periods of 2023, respectively. The effective interest rate was 4.0% in both periods of 2024 compared to 4.1% and 4.0% in the third quarter and nine-month period of 2023, respectively.
Income Tax Expense – Income tax expense increased in the third quarter and year-to-date periods of 2024 compared to 2023 driven by higher pre-tax income and lower deferred tax adjustments. In the third quarter of 2023, the states of Iowa, Kansas, and Arkansas enacted legislation to reduce their corporate income tax rate for future years resulting in a $41 million reduction of our deferred tax expense. Additionally, in the year-to-date period of 2023, the state of Nebraska enacted legislation to reduce its corporate income tax rate for future years resulting in a reduction of our deferred tax expense of $73 million. Our effective tax rates for year-to-date 2024 and 2023 were 23.5% and 21.9%, respectively.
OTHER OPERATING/PERFORMANCE AND FINANCIAL STATISTICS
We report a number of key performance measures weekly to the Surface Transportation Board (STB). We provide these on our website at https://investor.unionpacific.com/key-performance-metrics.
Operating/Performance Statistics
Management continuously monitors these key operating metrics to evaluate our operational efficiency in striving to deliver the service product we sold to our customers.
Railroad performance measures are included in the table below:
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
| September 30, |
September 30, |
|||||||||||||||||||||||
| 2024 |
2023 |
Change |
2024 |
2023 |
Change |
|||||||||||||||||||
| Gross ton-miles (GTMs) (billions) |
216.0 | 208.7 | 4 | % | 628.8 | 622.9 | 1 | % | ||||||||||||||||
| Revenue ton-miles (billions) |
104.0 | 103.0 | 1 | 305.3 | 308.4 | (1 | ) | |||||||||||||||||
| Freight car velocity (daily miles per car) [a] |
210 | 200 | 5 | 205 | 199 | 3 | ||||||||||||||||||
| Average train speed (miles per hour) [a] |
23.3 | 23.6 | (1 | ) | 23.5 | 23.9 | (2 | ) | ||||||||||||||||
| Average terminal dwell time (hours) [a] |
22.4 | 23.5 | (5 | ) | 22.8 | 23.6 | (3 | ) | ||||||||||||||||
| Locomotive productivity (GTMs per horsepower day) |
135 | 129 | 5 | 135 | 126 | 7 | ||||||||||||||||||
| Train length (feet) |
9,580 | 9,537 | - | 9,472 | 9,337 | 1 | ||||||||||||||||||
| Intermodal service performance index (%) |
86 | 85 | 1 | pts |
90 | 85 | 5 | pts |
||||||||||||||||
| Manifest/Automotive service performance index (%) |
89 | 84 | 5 | pts |
87 | 83 | 4 | pts |
||||||||||||||||
| Workforce productivity (car miles per employee) |
1,102 | 985 | 12 | 1,044 | 984 | 6 | ||||||||||||||||||
| Total employees (average) |
29,946 | 31,624 | (5 | ) | 30,518 | 31,800 | (4 | ) | ||||||||||||||||
| Operating ratio (%) |
60.3 | 63.4 | (3.1) | pts |
60.4 | 62.8 | (2.4) | pts |
||||||||||||||||
| [a] |
As reported to the STB. |
Gross and Revenue Ton-Miles – Gross ton-miles are calculated by multiplying the weight of loaded and empty freight cars by the number of miles hauled. Revenue ton-miles are calculated by multiplying the weight of freight by the number of tariff miles. Gross ton-miles and revenue ton-miles increased 4% and 1%, respectively, in the third quarter of 2024 compared to 2023, while carloadings increased 6% in the third quarter of 2024 compared to 2023. For the year-to-date periods, gross ton-miles increased 1% and revenue ton-miles decreased 1%, while carloadings were up 2% year-over-year. Changes in commodity mix drove the year-over-year variances between gross ton-miles, revenue ton-miles, and carloads due to lower coal shipments, which are generally heavier, and increased international intermodal shipments that are generally lighter.
Freight Car Velocity – Freight car velocity measures the average daily miles per car on our network. The two key drivers of this metric are the speed of the train between terminals (average train speed) and the time a rail car spends at the terminals (average terminal dwell time). Freight car velocity increased 5% and 3% in the third quarter and nine-month periods of 2024 compared to 2023, respectively, driven by improvements in terminal dwell.
Locomotive Productivity – Locomotive productivity is gross ton-miles per average daily locomotive horsepower available. Locomotive productivity increased 5% and 7% in the third quarter and nine-month periods of 2024, respectively, compared to 2023 driven by improved network fluidity and asset utilization. Throughout the year, we maintained a buffer to flex the fleet size as we experienced and subsequently recovered from certain weather events and reacted to varying volume levels.
Train Length – Train length is the average maximum train length on a route measured in feet. Our train length increased slightly and 1% in the third quarter and nine-month periods of 2024 compared to 2023, respectively, due to train length improvement initiatives and increases in international intermodal shipments, which generally move on longer trains, partially offset by declines in coal train length.
Service Performance Index (SPI) – SPI is a ratio of the service customers are currently receiving relative to the best monthly performance over the last three years. Measuring our performance relative to a historical benchmark demonstrates our focus on continuously improving service for our customers, and we believe it is a better indicator of service performance than the previously disclosed trip plan compliance. SPI does not replace the service commitments we have contractually agreed to with a small number of customers. Our SPI is calculated for intermodal and manifest/automotive products. Intermodal SPI improved 1 and 5 points in the third quarter and nine-month periods of 2024 compared to 2023, respectively, at the same time as international volume surged. Manifest/automotive SPI improved 5 and 4 points in the third quarter and nine-month periods of 2024 compared to 2023, respectively. The year-to-date period improved in 2024 compared to 2023 despite the impact of 2024 weather events.
Workforce Productivity – Workforce productivity is average daily car miles per employee. Workforce productivity improved 12% and 6% in the third quarter and nine-month periods of 2024, respectively, as average daily car miles increased 6% and 2% and employees decreased 5% and 4%, respectively, compared to 2023. In the third quarter and year-to-date periods, our active TE&Y workforce increased to support carload demand and increased crew needs associated with labor agreements that went into effect in third quarter of 2023. In addition, we are maintaining an adequate training pipeline to provide a capacity buffer to enable responsiveness in an ever-changing demand and operating environment.
Operating Ratio – Operating ratio is our operating expenses reflected as a percentage of operating revenues. Our operating ratio of 60.3% improved 3.1 points in the third quarter of 2024 compared to 2023 and our year-to-date operating ratio of 60.4% improved 2.4 points compared to 2023 driven by productivity initiatives, core pricing gains, and the year-over-year impact from lower fuel prices, partially offset by inflation and other costs. In addition, the year-to-date period was positively impacted by 2024 contract settlements, a 2024 gain on the sale of intermodal equipment, and the 2023 labor agreement ratification charge.
| Debt / Net Income |
||||||||
| Millions, Except Ratios |
Sep. 30, |
Dec. 31, |
||||||
| for the Trailing Twelve Months Ended [a] |
2024 |
2023 |
||||||
| Debt |
$ | 31,413 | $ | 32,579 | ||||
| Net income |
6,637 | 6,379 | ||||||
| Debt / net income |
4.7 | 5.1 | ||||||
Adjusted Debt / Adjusted EBITDA
| Millions, Except Ratios |
Sep. 30, | Dec. 31, | ||||||
| for the Trailing Twelve Months Ended [a] |
2024 |
2023 |
||||||
| Net income |
$ | 6,637 | $ | 6,379 | ||||
| Add: |
||||||||
| Income tax expense |
2,060 | 1,854 | ||||||
| Depreciation |
2,381 | 2,318 | ||||||
| Interest expense |
1,288 | 1,340 | ||||||
| EBITDA |
$ | 12,366 | $ | 11,891 | ||||
| Adjustments: |
||||||||
| Other income, net |
(390 | ) | (491 | ) | ||||
| Interest on operating lease liabilities [b] |
47 | 58 | ||||||
| Adjusted EBITDA |
$ | 12,023 | $ | 11,458 | ||||
| Debt |
$ | 31,413 | $ | 32,579 | ||||
| Operating lease liabilities |
1,283 | 1,600 | ||||||
| Adjusted debt |
$ | 32,696 | $ | 34,179 | ||||
| Adjusted debt / adjusted EBITDA |
2.7 | 3.0 | ||||||
| [a] | The trailing twelve months income statement information ended September 30, 2024, is recalculated by taking the twelve months ended December 31, 2023, subtracting the nine months ended September 30, 2023, and adding the nine months ended September 30, 2024. |
| [b] | 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. |
Adjusted debt (total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB (other post-retirement benefit) obligations) to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and adjustments for other income and interest on present value of operating leases) 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, other information provided in accordance with GAAP. The most comparable GAAP measure is debt to net income ratio. The tables above provide reconciliations from net income to adjusted EBITDA, debt to adjusted debt, and debt to net income to adjusted debt to adjusted EBITDA. At September 30, 2024, and December 31, 2023, the incremental borrowing rate on operating leases was 3.7% and 3.6%, respectively. Pension and OPEB were funded at September 30, 2024, and December 31, 2023.
LIQUIDITY AND CAPITAL RESOURCES
Financial Condition
| Cash Flows |
||||||||
| Millions, for the Nine Months Ended September 30, |
2024 |
2023 |
||||||
| Cash provided by operating activities |
$ | 6,684 | $ | 5,984 | ||||
| Cash used in investing activities |
(2,426 | ) | (2,650 | ) | ||||
| Cash used in financing activities |
(4,375 | ) | (3,540 | ) | ||||
| Net change in cash, cash equivalents, and restricted cash |
$ | (117 | ) | $ | (206 | ) | ||
Operating Activities
Cash provided by operating activities increased in the first nine months of 2024 compared to the same period of 2023 due primarily to 2023 payments of $449 million for agreements reached with our labor unions and higher net income.
Investing Activities
Cash used in investing activities decreased in the first nine months of 2024 compared to the same period of 2023 driven by higher proceeds from asset sales, including a sale of intermodal equipment.
The table below details cash capital investments:
| Millions, for the Nine Months Ended September 30, |
2024 |
2023 |
||||||
| Rail and other track material |
$ | 373 | $ | 448 | ||||
| Ties |
369 | 367 | ||||||
| Ballast |
145 | 152 | ||||||
| Other [a] |
480 | 509 | ||||||
| Total road infrastructure replacements |
1,367 | 1,476 | ||||||
| Line expansion and other capacity projects |
137 | 141 | ||||||
| Commercial facilities |
196 | 255 | ||||||
| Total capacity and commercial facilities |
333 | 396 | ||||||
| Locomotives and freight cars [b] |
643 | 483 | ||||||
| Technology and other |
187 | 227 | ||||||
| Total cash capital investments [c] |
$ | 2,530 | $ | 2,582 | ||||
| [a] | Other includes bridges and tunnels, signals, other road assets, and road work equipment. |
| [b] | Locomotives and freight cars include early lease buyouts of $96 million in 2024 and $14 million in 2023. |
| [c] | Weather-related damages for the nine months ended September 30, 2024 and 2023, are immaterial. |
Capital Plan
In 2024, we expect our capital plan to be approximately $3.4 billion, down 8% from 2023. Roughly half of the year-over-year decrease is attributable to the 2023 purchase of a small trucking and transload operator and related real estate assets. We plan to continue to make investments to support our growth strategy, harden our infrastructure, replace older assets, and improve the safety and resiliency of the network. In addition, the plan includes investments in growth-related projects to drive more carloads to the network, certain ramps to efficiently handle volumes from intermodal customers, continued modernization of our locomotive fleet, and projects intended to improve operational efficiency. The capital plan may be revised if business conditions warrant or if laws or regulations affect our ability to generate sufficient returns on these investments.
Financing Activities
Cash used in financing activities increased in the first nine months of 2024 compared to the same period of 2023 driven by a decrease in debt issued and an increase in share repurchases.
Free Cash Flow – Free cash flow is defined as cash provided by operating activities less cash used in investing activities and dividends paid. Cash flow conversion rate is defined as cash provided by operating activities less cash used for capital investments as a ratio of net income.
Free cash flow and cash flow conversion rate are not considered financial measures under GAAP 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 free cash flow and cash flow conversion rate are important to management and investors in evaluating our financial performance and measures our ability to generate cash without external financing. Free cash flow and cash flow conversion rate should be considered in addition to, rather than as a substitute for, cash provided by operating activities.
The following table reconciles cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):
| Millions, for the Nine Months Ended September 30, |
2024 |
2023 |
||||||
| Cash provided by operating activities |
$ | 6,684 | $ | 5,984 | ||||
| Cash used in investing activities |
(2,426 | ) | (2,650 | ) | ||||
| Dividends paid |
(2,403 | ) | (2,380 | ) | ||||
| Free cash flow |
$ | 1,855 | $ | 954 | ||||
The following table reconciles cash provided by operating activities (GAAP measure) to cash flow conversion rate (non-GAAP measure):
| Millions, for the Nine Months Ended September 30, |
2024 | 2023 |
||||||
| Cash provided by operating activities |
$ | 6,684 | $ | 5,984 | ||||
| Cash used in capital investments |
(2,530 | ) | (2,582 | ) | ||||
| Total (a) |
$ | 4,154 | $ | 3,402 | ||||
| Net income (b) |
$ | 4,985 | $ | 4,727 | ||||
| Cash flow conversion rate (a/b) |
83 | % | 72 | % | ||||
Current Liquidity Status
We are continually evaluating our financial condition and liquidity. We analyze a wide range of economic scenarios and the impact on our ability to generate cash. These analyses inform our liquidity plans and activities outlined below and indicate we have sufficient borrowing capacity to sustain an extended period of lower volumes.
During the third quarter of 2024, we generated $2.7 billion of cash provided by operating activities, repurchased $738 million worth of shares under our share repurchase programs, and paid our quarterly dividend. On September 30, 2024, we had $947 million of cash and cash equivalents, $2.0 billion of credit available under our revolving credit facility, and $800 million undrawn on the Receivables Facility. We have been, and we expect to continue to be, in compliance with our debt covenants.
As described in the notes to the Condensed Consolidated Financial Statements and as referenced in the table below, we have contractual obligations that may affect our financial condition. Based on our assessment of the underlying provisions and circumstances of our contractual obligations, other than the risks that we and other similarly situated companies face with respect to the condition of the capital markets, as of the date of this filing, there is no known trend, demand, commitment, event, or uncertainty that is reasonably likely to occur that would have a material adverse effect on our consolidated results of operations, financial condition, or liquidity. In addition, our commercial obligations, financings, and commitments are customary transactions that are like those of other comparable corporations, particularly within the transportation industry.
The following table identifies material obligations as of September 30, 2024:
| Oct. 1 |
Payments Due by Dec. 31, |
|||||||||||||||||||||||||||
| through |
||||||||||||||||||||||||||||
| Contractual Obligations |
Dec. 31, |
After |
||||||||||||||||||||||||||
| Millions |
Total |
2024 |
2025 |
2026 |
2027 |
2028 |
2028 |
|||||||||||||||||||||
| Debt [a] |
$ | 58,298 | $ | 392 | $ | 2,591 | $ | 2,617 | $ | 2,348 | $ | 2,294 | $ | 48,056 | ||||||||||||||
| Purchase obligations [b] |
2,082 | 168 | 786 | 618 | 235 | 163 | 112 | |||||||||||||||||||||
| Operating leases [c] |
1,416 | 51 | 350 | 279 | 225 | 198 | 313 | |||||||||||||||||||||
| Other post-retirement benefits [d] |
382 | 33 | 40 | 40 | 39 | 39 | 191 | |||||||||||||||||||||
| Finance lease obligations [e] |
125 | 7 | 42 | 35 | 30 | 11 | - | |||||||||||||||||||||
| Total contractual obligations |
$ | 62,303 | $ | 651 | $ | 3,809 | $ | 3,589 | $ | 2,877 | $ | 2,705 | $ | 48,672 | ||||||||||||||
| [a] | Excludes finance lease obligations of $116 million as well as unamortized discount and deferred issuance costs of ($1,703) million. Includes an interest component of $25,298 million. |
| [b] | Purchase obligations include locomotive maintenance contracts; purchase commitments for ties, ballast, and rail; and agreements to purchase other goods and services. |
| [c] | Includes leases for locomotives, freight cars, other equipment, and real estate. Includes an interest component of $133 million. |
| [d] | Includes estimated other post-retirement, medical, and life insurance payments and payments made under the unfunded pension plan for the next ten years. |
| [e] | Represents total obligations, including interest component of $9 million. |
OTHER MATTERS
Asserted and Unasserted Claims – See Note 15 to the Condensed Consolidated Financial Statements.
Indemnities – See Note 15 to the Condensed Consolidated Financial Statements.
CAUTIONARY INFORMATION
Certain statements in this report, and statements in other reports or information filed or to be filed with the SEC (as well as information included in oral statements or other written statements made or to be made by us), are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements and information include, without limitation, statements and information set forth under the captions “Liquidity and Capital Resources” regarding our capital plan, share repurchase programs, contractual obligations, and "Other Matters" in this Item 2 of Part I. Forward-looking statements and information also include any other statements or information in this report (including information incorporated herein by reference) regarding: potential impacts of public health crises, including pandemics, epidemics, and the outbreak of other contagious disease, such as the coronavirus and its variant strains (COVID); the Russia-Ukraine and Israel-Hamas wars and other geopolitical tensions in the middle east, and any impacts on our business operations, financial results, liquidity, and financial position, and on the world economy (including customers, employees, and supply chains), including as a result of fluctuations in volume and carloadings; closing of customer manufacturing, distribution or production facilities; expectations as to operational or service improvements; expectations as to hiring challenges; availability of employees; expectations regarding the effectiveness of steps taken or to be taken to improve operations, service, infrastructure improvements, and transportation plan modifications (including those discussed in response to increased traffic); expectations as to cost savings, revenue growth, and earnings; the time by which goals, targets, or objectives will be achieved; projections, predictions, expectations, estimates, or forecasts as to our business, financial, and operational results, future economic performance, and general economic conditions; proposed new products and services; estimates of costs relating to environmental remediation and restoration; estimates and expectations regarding tax matters; expectations that claims, litigation, environmental costs, commitments, contingent liabilities, labor negotiations or agreements, cyber-attacks or other matters will not have a material adverse effect on our consolidated results of operations, financial condition, or liquidity and any other similar expressions concerning matters that are not historical facts. Forward-looking statements may be identified by their use of forward-looking terminology, such as “believes,” “expects,” “may,” “should,” “would,” “will,” “intends,” “plans,” “estimates,” “anticipates,” “projects” and similar words, phrases, or expressions.
Forward-looking statements should not be read as a guarantee of future performance, results, or outcomes, and will not necessarily be accurate indications of the times that, or by which, such performance, results, or outcomes will be achieved, if ever. Forward-looking statements and information are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements and information. Forward-looking statements and information reflect the good faith consideration by management of currently available information, and may be based on underlying assumptions believed to be reasonable under the circumstances. However, such information and assumptions (and, therefore, such forward-looking statements and information) are or may be subject to variables or unknown or unforeseeable events or circumstances over which management has little or no influence or control, and many of these risks and uncertainties are currently amplified by and may continue to be amplified by, or in the future may be amplified by, among other things, macroeconomic and geopolitical conditions.
The Risk Factors in Item 1A of our 2023 Annual Report on Form 10-K, filed February 9, 2024, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in any forward-looking statements or information. To the extent circumstances require or we deem it otherwise necessary, we will update or amend these risk factors in a Form 10-Q, Form 8-K, or subsequent Form 10-K. All forward-looking statements are qualified by, and should be read in conjunction with, these Risk Factors.
Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward looking information to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forward-looking statements.
AVAILABLE INFORMATION
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There were no material changes to the Quantitative and Qualitative Disclosures About Market Risk previously disclosed in our 2023 Annual Report on Form 10-K.
Item 4. Controls and Procedures
As of the end of the period covered by this report, the Corporation carried out an evaluation, under the supervision and with the participation of the Corporation’s management, including the Corporation’s Chief Executive Officer (CEO) and Executive Vice President and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based upon that evaluation, the CEO and the CFO concluded that, as of the end of the period covered by this report, the Corporation’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified by the SEC, and that such information is accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.
Additionally, the CEO and CFO determined that there were no changes to the Corporation’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.
From time to time, we are involved in legal proceedings, claims, and litigation that occur in connection with our business. We routinely assess our liabilities and contingencies in connection with these matters based upon the latest available information and, when necessary, we seek input from our third-party advisors when making these assessments. Consistent with SEC rules and requirements, we describe below material pending legal proceedings (other than ordinary routine litigation incidental to our business), material proceedings known to be contemplated by governmental authorities, other proceedings arising under federal, state, or local environmental laws and regulations (including governmental proceedings involving potential fines, penalties, or other monetary sanctions in excess of $1,000,000), and such other pending matters that we may determine to be appropriate.
Environmental Matters
We receive notices from the U.S. Environmental Protection Agency (EPA) and state environmental agencies alleging that we are or may be liable under federal or state environmental laws for remediation costs at various sites throughout the U.S., including sites on the Superfund National Priorities List or state superfund lists. We cannot predict the ultimate impact of these proceedings and suits because of the number of potentially responsible parties involved, the degree of contamination by various wastes, the scarcity and quality of volumetric data related to many of the sites, and the speculative nature of remediation costs.
Information concerning environmental claims and contingencies and estimated remediation costs is set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates - Environmental, Item 7, and Note 17 of the Financial Statements and Supplementary Data, Item 8, of our 2023 Annual Report on Form 10-K.
For a discussion of our potential risks and uncertainties, see the risk factors disclosed in our Form 10-K for the year ended December 31, 2023. These risks could materially and adversely affect our business, financial condition, results of operations (including revenues and profitability), and/or stock price. Our business also could be affected by risks that we are not presently aware of or that we currently consider immaterial to our operations.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Purchases of Equity Securities – The following table presents common stock repurchases during each month for the third quarter of 2024:
| Period |
Total Number of |
Average |
Total Number of Shares |
Maximum Number of |
||||||||||||
| Jul. 1 through Jul. 31 |
875,956 | $ | 236.15 | 875,956 | 79,023,751 | |||||||||||
| Aug. 1 through Aug. 31 |
1,148,092 | 246.70 | 1,147,633 | 77,876,118 | ||||||||||||
| Sep. 1 through Sep. 30 |
1,025,829 | 251.96 | 982,472 | 76,893,646 | ||||||||||||
| Total |
3,049,877 | $ | 245.44 | 3,006,061 | N/A | |||||||||||
| [a] | Total number of shares purchased during the quarter includes 43,816 shares delivered or attested to UPC by employees to pay stock option exercise prices and satisfy tax withholding obligations for stock option exercises or vesting of retention units or retention shares. |
| [b] | Effective April 1, 2022, our Board of Directors authorized the repurchase of up to 100 million shares of our common stock by March 31, 2025. These repurchases may be made on the open market or through other transactions. Our management has sole discretion with respect to determining the timing, manner, and amount of these transactions. |
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not Applicable.
On , , , a trading plan intended to satisfy Rule -(c) to sell up to
On , , , a trading plan intended to satisfy Rule -(c) to sell up to
On , , , a trading plan intended to satisfy Rule -(c) to sell up to
| 101 |
The following financial and related information from Union Pacific Corporation’s Quarterly Report on Form 10-Q for the period ended September 30, 2024 (filed with the SEC on October 24, 2024), formatted in Inline Extensible Business Reporting Language (iXBRL) includes (i) Condensed Consolidated Statements of Income for the periods ended September 30, 2024 and 2023, (ii) Condensed Consolidated Statements of Comprehensive Income for the periods ended September 30, 2024 and 2023, (iii) Condensed Consolidated Statements of Financial Position at September 30, 2024, and December 31, 2023, (iv) Condensed Consolidated Statements of Cash Flows for the periods ended September 30, 2024 and 2023, (v) Condensed Consolidated Statements of Changes in Common Shareholders’ Equity for the periods ended September 30, 2024 and 2023, and (vi) the Notes to the Condensed Consolidated Financial Statements. |
| 104 |
Cover Page Interactive Data File, formatted in Inline XBRL (contained in Exhibit 101). |
| Incorporated by Reference |
|
| 3(a) |
|
| 3(b) |
|
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 thereunto duly authorized.
Dated: October 24, 2024
| UNION PACIFIC CORPORATION (Registrant) | ||
| By |
/s/ Jennifer L. Hamann |
|
| Jennifer L. Hamann |
||
| Executive Vice President and |
||
| Chief Financial Officer |
||
| (Principal Financial Officer) |
||
| By |
/s/ Todd M. Rynaski |
|
| Todd M. Rynaski |
||
| Senior Vice President and |
||
| Chief Accounting, Risk, and Compliance Officer | ||
| (Principal Accounting Officer) |