Union Pacific News 4th Quarter as well as Complete Year 2022 Outcomes

January 24, 2023

  • 4th quarter revenues per watered down share of $ 2.67
  • 4th quarter operating income up 8%
  • Complete year revenues per watered down share of $ 11.21
  • Complete year running earnings up 6%

OMAHA, Neb., Jan. 24, 2023/ PRNewswire/– Union Pacific Company (NYSE: UNP) today reported 2022 4th quarter take-home pay of $ 1.6 billion, or $ 2.67 per weakened share. This contrasts to 2021 4th quarter take-home pay of $ 1.7 billion, or $ 2.66 per weakened share.

Reported take-home pay for complete year 2022 was $ 7.0 billion, or $ 11.21 per weakened share. These complete year results contrast to complete year 2021 take-home pay of $ 6.5 billion, or $ 9.95 per weakened share.

” In the 4th quarter, we expanded carloads as we remained to encounter difficulties working with craft experts in important areas as well as experienced the effect of severe winter months climate on our network in December,” stated Lance Fritz, Union Pacific chairman, head of state, as well as president. “Consequently, income development was greater than countered by raised general expenses from functional ineffectiveness as well as a greater inflationary atmosphere. For the complete year, we made great development on worker security, as well as we took one more action towards our sustainability objectives as our gas intake price enhanced for the 4th successive year. Wanting to 2023, we anticipate ongoing enhancements in network fluidness to sustain service growth, producing quantity development that surpasses commercial manufacturing. We likewise anticipate network enhancements to aid us regain shed performance while supplying consumers with reputable solution.”

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4th Quarter Recap

Economic Outcomes: Profits Development Countered by Greater Expenditures Connected With Rising Cost Of Living as well as Network Recuperation; 4th Quarter Document for Operating Profits
4th Quarter 2022 Contrasted to 4th Quarter 2021

  • Operating income of $ 6.2 billion was up 8% driven by greater gas additional charge income, core prices gains, as well as quantity development, partly countered by an adverse service mix.
  • Company quantities, as determined by complete income carloads, were up 1%.
  • Union Pacific’s 61.0% operating proportion weakened 360 basis factors. Dropping gas costs late in the quarter favorably affected the operating proportion by 20 basis factors.
  • Operating earnings of $ 2.4 billion decreased 1%.
  • The business redeemed 3.5 million shares in 4th quarter 2022 at an accumulated price of $ 0.7 billion

Operating Efficiency: Solution as well as Performance Actions Affected by Network Blockage as well as Winter Months Weather Condition; 4th Quarter Document for Gas Usage Price
4th Quarter 2022 Contrasted to 4th Quarter 2021

  • Quarterly products vehicle speed was 191 day-to-day miles per vehicle, a 3% decrease.
  • Quarterly engine performance was 123 gross ton-miles (GTMs) per horse power day, a 5% decrease.
  • Ordinary optimum train size reduced 1% to 9,191 feet.
  • Quarterly labor force performance reduced 3% to 1,010 vehicle miles per worker.
  • Gas intake price of 1.064, determined in gallons of gas per thousand GTMs, enhanced 2%.

2022 Complete Year Recap

Economic Outcomes: Gas Additional Charge, Core Rates Gains, as well as Quantity Drive Profits Development; Records for Operating Profits, Operating Revenue, Earnings, as well as Incomes Per Share
Complete Year 2022 Contrasted to Complete Year 2021

  • Operating income of $ 24.9 billion was up 14% driven by greater gas additional charge income, core prices gains, as well as quantity development.
  • Company quantities, as determined by complete income carloads, expanded 2%.
  • Union Pacific’s 60.1% reported running proportion scrubby 290 basis factors. Greater gas costs adversely affected the operating proportion by 20 basis factors as well as the previous duration change pertaining to brand-new labor arrangements included 30 basis indicate running proportion.
  • Operating Revenue of $ 9.9 billion was up 6%.
  • Union Pacific’s 2022 resources program amounted to $ 3.4 billion
  • The business redeemed 27.1 million shares in 2022 at an accumulated price of $ 6.3 billion

Operating Efficiency: Network Workflow Impacted by Team Schedule as well as Operational Inefficiencies; Document for Gas Usage Price
Complete Year 2022 Contrasted to Complete Year 2021

  • Union Pacific’s reportable accident price enhanced 18% to 0.80 per 200,000 employee-hours contrasted to 0.98 for complete year 2021.
  • Products vehicle speed was 191 day-to-day miles per vehicle, a 6% decrease.
  • Locomotive performance was 125 GTMs per horse power day, a 6% decrease.
  • Ordinary optimum train size of 9,329 feet was level.
  • Labor force performance of 1,036 vehicle miles per worker was level.
  • Gas intake price of 1.078, determined in gallons of gas per thousand GTMs, enhanced 1%.

2023 Support

  • Complete year carloads to go beyond Industrial Manufacturing
    • Present Industrial Manufacturing projection: -0.5%
  • Complete year running proportion enhancement
  • Rates bucks over of rising cost of living bucks
  • Resources Appropriation:
    • Capital investment much less than 15% of income
      • Resources strategy of $ 3.6 billion
    • Long-term reward payment target of ~ 45% of revenues
    • Excess money to share repurchases

4th Quarter 2022 Incomes Teleconference

Union Pacific will certainly webcast its 4th quarter 2022 revenues launch discussion live at www.up.com/investor as well as by means of teleconference on Tuesday, January 24, 2023, at 8:45 a.m. Eastern Time Individuals might sign up with the teleconference by calling 877-407-8293 (or for global individuals, 201-689-8349).

REGARDING UNION PACIFIC

Union Pacific (NYSE: UNP) performs family members as well as services utilize everyday with risk-free, reputable, as well as reliable solution. Running in 23 western states, the business attaches its consumers as well as areas to the international economic situation. Trains are one of the most ecologically liable method to relocate products, aiding Union Pacific secure future generations. Even more info concerning Union Pacific is offered at www.up.com.

Supplemental monetary info is connected.

This press release as well as relevant products include declarations concerning the Firm’s future that are not declarations of historic truth, consisting of particularly the declarations pertaining to the Firm’s assumptions relative to financial problems as well as need degrees, its capacity to boost network efficiency (consisting of those in action to enhanced website traffic), its outcomes of procedures, as well as prospective influences of the COVID-19 pandemic as well as the Russian-Ukraine problem. These declarations are, or will certainly be, progressive declarations within the definition of Area 27A of the Stocks Act of 1933 as well as Area 21E of the Stocks Exchange Act of 1934. Positive declarations likewise normally consist of, without constraint, info, or declarations pertaining to: forecasts, forecasts, assumptions, price quotes, or projections regarding the Firm’s as well as its subsidiaries’ service, monetary, as well as functional outcomes, as well as future financial efficiency; as well as monitoring’s ideas, assumptions, objectives, as well as goals as well as various other comparable expressions worrying issues that are not historic truths.

Positive declarations ought to not read as a warranty of future efficiency or outcomes, as well as will certainly not always be exact signs of the moments that, or whereby, such efficiency or outcomes will certainly be attained. Positive info, consisting of assumptions pertaining to functional as well as monetary enhancements as well as the Firm’s future efficiency or outcomes go through dangers as well as unpredictabilities that might trigger real efficiency or results to vary materially from those shared in the declaration. Essential elements, consisting of threat elements, might impact the Firm’s as well as its subsidiaries’ future outcomes as well as might trigger those outcomes or various other results to vary materially from those shared or suggested in the progressive declarations. Info pertaining to threat elements as well as various other cautionary info are offered in the Firm’s Yearly Record on Type 10-K for 2021, which was submitted with the SEC on February 4, 2022 The Firm updates info pertaining to threat elements if conditions call for such updates in its routine records on Type 10-Q as well as its succeeding Yearly Records on Type 10-K (or such various other records that might be submitted with the SEC).

Positive declarations talk just since, as well as are based just upon info offered on, the day the declarations were made. The Firm thinks no commitment to upgrade progressive info to mirror real outcomes, adjustments in presumptions, or adjustments in various other elements impacting progressive info. If the Firm does upgrade several progressive declarations, no reasoning ought to be attracted that the Firm will certainly make extra updates with regard thereto or relative to various other progressive declarations. Referrals to our web site are offered benefit as well as, for that reason, info on or offered via the web site is not, as well as ought to not be considered to be, included by recommendation here.

UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS

Compressed Consolidated Statements of Revenue (unaudited)

Many Millions, Other Than Per Share Quantities as well as

fourth Quarter



Complete Year


Percents, Through Finished December 31,

2022



2021



%



2022



2021



%


Operating Incomes

























Products earnings


$

5,768



$

5,297




9

%


$

23,159



$

20,244




14

%

Various other earnings



412




436




( 6 )




1,716




1,560




10


Overall running earnings



6,180




5,733




8




24,875




21,804




14


Operating Budget

























Payment as well as advantages



1,174




1,070




10




4,645




4,158




12


Gas



853




597




43




3,439




2,049




68


Bought solutions as well as products



633




538




18




2,442




2,016




21


Devaluation



569




556




2




2,246




2,208




2


Tools as well as various other leas



238




230




3




898




859




5


Various Other



301




302







1,288




1,176




10


Overall general expenses



3,768




3,293




14




14,958




12,466




20


Operating Revenue



2,412




2,440




( 1 )




9,917




9,338




6


Various other earnings, web



92




83




11




426




297




43


Rate of interest expenditure



( 333 )




( 295 )




13




( 1,271)




( 1,157)




10


Revenue prior to earnings tax obligations



2,171




2,228




( 3 )




9,072




8,478




7


Revenue tax obligations



( 533 )




( 517 )




3




( 2,074)




( 1,955)




6


Earnings


$

1,638



$

1,711




( 4 )



$

6,998



$

6,523




7



























Share as well as Per Share

























Incomes per share – fundamental


$

2.67



$

2.67




%


$

11.24



$

9.98




13

%

Incomes per share – weakened


$

2.67



$

2.66






$

11.21



$

9.95




13


Heavy ordinary variety of shares – fundamental

612.7




640.4




( 4 )




622.7




653.8




( 5 )


Heavy ordinary variety of shares – weakened

613.7




642.1




( 4 )




624.0




655.4




( 5 )


Returns proclaimed per share


$

1.30



$

1.18




10



$

5.08



$

4.29




18



























Operating Proportion



61.0

%



57.4

%



3.6

pts



60.1

%



57.2

%



2.9

pts

Efficient Tax Obligation Price



24.6

%



23.2

%



1.4




22.9

%



23.1

%



( 0.2 )


UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS

Products Incomes Data (unaudited)



fourth Quarter



Complete Year


Through Finished December 31,


2022



2021



%



2022



2021



%


Products Incomes (Millions)

























Grain & & grain items


$

974



$

889




10

%


$

3,598



$

3,181




13

%

Plant Food



171




176




( 3 )




712




697




2


Food & & cooled



265




259




2




1,093




998( & *) 10




Coal & renewables


523



485




8




2,134




1,780




20




Mass


1,933



1,809




7( & *) 7,537




6,656




13




Commercial chemicals & & plastics




502


507



( 1)




2,158




1,943




11




Metals & minerals




548


481



14




2,196




1,811




21




Woodland items




325


351



( 7)




1,465




1,357




8




Power & specialized markets




624


558



12




2,386




2,212




8




Industrial




1,999


1,897



5




8,205




7,323




12




Automotive




594


469



27




2,257




1,761




28




Intermodal




1,242


1,122



11




5,160




4,504




15




Costs




1,836


1,591



15




7,417




6,265




18 &




Overall




$


5,768


$

5,297



9 &

%




$

23,159


$

20,244



14

%




Profits Carloads( Thousands)

Grain & grain items( & *) 208

213

























( 2 )



%




798




805

( 1)( & *)%



Plant Food




41




48

( 15)

190



201




( 5)




Food & cooled




44




48




( 8)


187



189




( 1)




Coal & renewables




215




215





885



819




8




Mass




508




524




( 3)


2,060



2,014




2




Commercial chemicals & plastics




151




157




( 4)


637



606




5




Metals & minerals




196(* & )181




8




785


697



13




Woodland items




52




63




( 17)




241


250



( 4)




Power & specialized markets




140




137




2




552


559 &



( 1)




Industrial




539




538







2,215


2,112



5




Automotive




198




& 182




9




778


701



11




Intermodal &




743




728




2




3,116


3,211[a]



( 3)




Costs




941




910




3




3,894( & *) 3,912




Overall




1,988




1,972




1




%




8,169


8,038



2




%




Ordinary Profits per Auto

Grain & grain items



$




4,681




$

4,187

12

























%


$

4,509



$

3,953




14

%


Plant Food

4,167



3,705

12




3,749

3,470

8



Food & cooled




5,957




5,409




10




5,844(* )5,279




11


Coal & renewables



2,431




2,251




8




2,410




2,173




11


Mass



3,799




3,457




10




3,658




3,305




11


Commercial chemicals & plastics



3,335




3,242




3




3,388




3,207




6


Metals & minerals



2,790




2,659




5




2,797




2,598




8


Woodland items



6,264




5,521




13




6,092




5,424




12


Power & specialized markets



4,459




4,054




10




4,320




3,956




9


Industrial



3,711




3,522




5




3,704




3,467




7


Automotive



3,007




2,576




17




2,902




2,511




16


Intermodal



1,672




1,541




9




1,656




1,403




18(* )Costs


1,953[a]



1,748




12




1,905




1,601




19




Ordinary


$



2,902




$




2,686




8




%




$


2,835


$

2,519



13

%




For intermodal deliveries each container or trailer amounts to one carload.

UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS


Compressed Consolidated Statements of Financial Placement( unaudited)



Dec. 31,

Dec. 31,




Many Millions, Other Than Percents

2022




[a]

2021

Properties

Cash money as well as money matchings

$


973(* )$


960


Temporary financial investments


46



46


Various other present possessions (* )2,933









2,545


Investments

2,375



2,241

Qualities, web


56,038



54,871




Operating lease possessions


1,672



1,787




Various other possessions


1,412



1,075




Overall possessions


$



65,449




$


63,525



Responsibilities as well as Usual Investors’ Equity




Financial debt due within one year(* )$


1,678



$(* )2,166(* )Various other present responsibilities




3,842


3,578(* )Financial debt due after one year


31,648

27,563



Operating lease responsibilities

1,300(* )1,429(* )Deferred earnings tax obligations











13,033









12,675


Various other lasting responsibilities

1,785



1,953

Overall responsibilities


53,286



49,364




Overall usual investors’ equity


12,163



14,161




Overall responsibilities as well as usual investors’ equity


$



65,449




$


63,525



Return typically Usual Investors’ Equity




53.2


%



41.9(* )%




Return on Invested Resources as Adjusted( ROIC) *


17.3



%




16.4


%



*




ROIC is a non-GAAP step; nonetheless, monitoring thinks that it is a vital step in assessing the performance as well as performance of our lasting capital expense. See web page 9 for a settlement to GAAP.


UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS


Compressed Consolidated Statements of Cash money Flows( unaudited)



Many Millions,

Complete Year











Through Finished December 31,

2022

2021



Operating Tasks

Earnings

$

6,998

$



6,523

Devaluation



2,246

2,208

Deferred as well as various other earnings tax obligations

262

154

Various other -web


( 144)


147(* )Cash money offered by running tasks


9,362



9,032


Spending Tasks









Capital expense *


( 3,620)

( 2,936)(* )Maturations of temporary financial investments



46

94


Acquisitions of temporary financial investments



( 46)




( 70)


Various other -web



149




203


Cash money utilized in spending tasks



( 3,471)




( 2,709)(* )Funding Tasks


Share redeemed programs(* )( 6,282)



( 7,291 )




Financial debt released(* )6,080(* )4,201











Dividends paid









( 3,159 )



( 2,800)




Financial debt paid off


( 2,291)(* )( 1,299 )



Internet issuance of business paper




( 205)


325



Financial debt exchange





( 270 )



Various other -web




( 30 )


( 24 )



Cash money utilized in funding tasks




( 5,887) (* )( 7,158)











Internet Adjustment in Money, Money Matchings, as well as Restricted Money(* )4









( 835)(* )Cash money, money matchings, as well as limited money at start of year



983




1,818


Cash money, money matchings, as well as limited money at end of year



$




987


$



983




Free Capital **


Cash money offered by running tasks



$(* )9,362(* )$




9,032


Cash money utilized in spending tasks



( 3,471 )




( 2,709)


Dividends paid



( 3,159)




( 2,800)


Totally free capital



$




2,732


$



3,523




*











Capital expense consist of engine as well as products vehicle very early lease acquistions of$ 70 million in 2022 as well as$ 34 million in 2021.

**




Totally free capital is a non-GAAP step; nonetheless, our team believe this step is very important to monitoring as well as capitalists in assessing our monetary efficiency as well as determines our capacity to create money without extra exterior funding.


UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS


Operating as well as Efficiency Data( unaudited)





fourth Quarter

Complete Year

Through Finished December 31,



2022

2021











%









2022


2021

%



Operating/Performance Data

Products vehicle speed( day-to-day miles per vehicle )*(* )191


197



( 3)




%


191



203




( 6 )


%


Ordinary train rate( miles per hr) *

23.8



24.2(* )( 2)

23.8




24.6

( 3)



Ordinary incurable dwell time( hrs) *

24.5

24.4

24.4



23.7



3


Locomotive performance( GTMs per horse power day)


123



129



( 5)



125



133



( 6)


Gross ton-miles( GTMs)( millions)(* )208,949

























209,970






843,443




817,919

3



Train size( feet)




9,191




9,319

( 1)

9,329



9,334







Intermodal vehicle journey prepare conformity (%) **




73




78




( 5)


pts



67




73




( 6)




pts




Manifest/Automotive vehicle journey prepare conformity(%) **




58


58




pts




59




63




( 4 )




pts


Labor force performance( vehicle miles per worker)



1,010




1,046




( 3)




1,036




1,038( & *)-




Overall staff members( standard)


31,120



29,989




4




& 30,717




29,905




3




Engine Gas Data


Ordinary gas cost per gallon taken in



$




3.70




$

2.53



46




%




$

3.65

$(* &) 2.23

64




%




Gas eaten in gallons( millions)

222



& 228




( 3)




909

888

2

Gas intake price ***




1.064




1.088




( 2)




& 1.078




1.086


( 1)



Profits Ton-Miles( Millions)




Grain & grain items




20,683




21,656




( 4)




%



























79,725

























79,520

%



Plant Food

2,701




3,185

( 15)


11,769

12,387



( 5 )

Food & cooled




4,576

4,651

( 2)



17,965




18,475




( 3)




Coal & renewables




21,847




22,795


( 4)



91,824




85,586




7




Mass




49,807




52,287



























( 5 )

























201,283



195,968




3




Commercial chemicals & plastics

6,626



7,257




( 9)




29,572(* )30,048(* )( 2)

Metals & minerals

9,367



8,611




9




37,827




32,993




15




Woodland items


5,546



6,458 (* )( 14)




25,438




25,863




( 2)




Power & specialized markets




9,575


9,420



2




37,068




37,902(* )( 2)




Industrial




31,114




31,746


( 2)



129,905




126,806




2




Automotive




4,384




3,830


14



17,018




14,879




14




Intermodal




17,622(* )16,977




4


72,546



73,620




( 1)




Costs




22,006




20,807




6


89,564



88,499




1




Overall




102,927




104,840




( 2)


%



420,752




411,273




2




%




*




Surface Area Transport Board( STB) reported efficiency procedures.


**



Technique utilized to record is not equivalent with the reporting to the STB under docket number EP 770.




***




Gas intake is calculated as complies with: gallons of gas taken in separated by gross ton-miles in thousands.




UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS




Compressed Consolidated Statements of Revenue( unaudited)





Many Millions,



2022




Other Than Per Share Quantities as well as Percents,




first Qtr




second Qtr




third Qtr




fourth Qtr


Complete Year



Operating Incomes




Products earnings




$




5,440




$




5,842


$



6,109




$




5,768




$




23,159




Various other earnings


420



427




457




412

1,716



Overall running earnings




5,860




6,269

6,566



6,180

24,875



Operating Budget

Payment as well as advantages



1,101

1,092

1,278

1,174

4,645

Gas

714


940

932

853

3,439

Bought solutions as well as products

561


622





















626


633

2,442



Devaluation

555



559

563



569

2,246



Tools as well as various other leas

215


230



215(* )238(* )898




Various Other




337




331




319


301



1,288




Overall general expenses




3,483




3,774




3,933(* )3,768


14,958





















Operating Revenue



2,377




2,495




2,633




2,412




9,917


Various other earnings, web



47(* )163




124




92




426




Rate of interest expenditure


( 307)



( 316)




( 315)




( 333)




( 1,271)




Revenue prior to earnings tax obligations


2,117



2,342




2,442




2,171




9,072




Revenue tax obligations


( 487)



( 507)




( 547)




( 533)




( 2,074)




Earnings


$



1,630




$




1,835




$




1,895


$



1,638(* )$




6,998




Share as well as Per Share




Incomes per share- fundamental




$


2.58



$




2.93




$




3.05




$


2.67( & *)$



11.24




Incomes per share- weakened




$




2.57




$


2.93



$




3.05




$




2.67




$


11.21



Heavy ordinary variety of shares -fundamental




632.2




625.6




620.4




612.7


622.7



Heavy ordinary variety of shares- weakened




633.6




626.8




621.5




613.7


624.0


Returns proclaimed per share

$



1.18

$



1.30

$



1.30

$(* )1.30



$

5.08( & *) Operating Proportion























59.4





















%


60.2

%(* &) 59.9



%

61.0



%

60.1



%

Efficient Tax Obligation Price



23.0

%


21.6


%

22.4



%(* & )24.6

%



22.9

%



UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS

Products Incomes Data( unaudited)



2022


first Qtr



second Qtr




third Qtr




fourth Qtr




Complete Year




Products Incomes( Millions)


Grain & grain items



$




877




$




867




$


880


$

974



$

3,598



Plant Food

180



183

178



171

712(* & )Food & cooled























267



271

290



265

1,093



Coal & renewables

508



492

611( & *) 523



2,134

Mass

1,832



1,813( & *) 1,959

1,933



7,537

Commercial chemicals & plastics



520

557



579

502



2,158

Metals & minerals

485

562

601



548



2,196

Woodland & items

364

386

390


325





















1,465


Power & specialized markets

552



586

624



& 624

2,386



Industrial

1,921



2,091

2,194


1,999



8,205




Automotive




501




561




601


594



2,257




Intermodal




1,186




1,377




1,355


1,242



5,160




Costs




1,687




1,938




1,956


1,836



7,417




Overall




$




5,440




$


5,842



$




6,109




5,768




23,159




Profits Carloads( Thousands)


Grain & grain items



205




195(* & )190




208




798




Plant Food


45



53




51




41




190




Food & cooled


47(* &) 48



48




44




187




Coal & & renewables




225


202



243




215




885




Mass




522


498



532




508




2,060




Commercial chemicals & & plastics




160


161



165




151




637




Metals & & minerals




182


205



202




196




785




Woodland items




64


63


62

52



241

Power & & specialized markets



131

141




140




140


552





















Industrial



537




570




569




539




2,215


Automotive



190




192




198




198




778


Intermodal



757




805




811




743




3,116


Costs



947




997




1,009




941




3,894


Overall



2,006




2,065




2,110




1,988




8,169


Ordinary Profits per Auto



Grain & grain items




$




4,269




$




4,451


$(* )4,641



$




4,681




$




4,509




Plant Food


4,016



3,437




3,504




4,167




3,749




Food & cooled


5,637



5,770(* )6,017




5,957




5,844




Coal & renewables




2,262


2,426(* )2,514(* )2,431



2,410




Mass




3,508




3,642




3,685(* )3,799


3,658



Commercial chemicals & plastics




3,247




3,455




3,508




3,335


3,388[a]



Metals & minerals




2,660(* )2,755




2,969




2,790




2,797


Woodland items



5,672




6,128




6,347




6,264




6,092


Power & specialized markets



4,219




4,161




4,434




4,459




4,320


Industrial





















3,574


3,674

3,852



3,711

3,704



Automotive

2,640



2,919

3,030



3,007

2,902


Intermodal



1,566




1,711




1,672




1,672




1,656


Costs



1,782




1,943




1,939




1,953




1,905


Ordinary



$




2,711




$




2,830




$


2,895



$




2,902




$




2,835




For intermodal deliveries each container or trailer amounts to one carload.


UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS



Non-GAAP Actions Settlement to GAAP







Adjusted Financial Debt/ Adjusted EBITDA *




Many Millions, Other Than Proportions




Dec 31,


Dec 31,



For the Twelve Months Finished




2022




2021




Earnings(* )$




6,998


$



6,523




Include:




Revenue tax obligation expenditure




2,074




1,955


Devaluation



2,246




2,208




Rate of interest expenditure




1,271




1,157


EBITDA



$




12,589




$




11,843




Modifications:(* )Various other earnings, web


( 426)



( 297)




Rate of interest on running lease responsibilities **




54(* )56




Readjusted EBITDA




$


12,217[a]



$(* )11,602




Financial Debt(* )$




33,326




$




29,729


Operating lease responsibilities



1,631




1,759




Unfunded pension plan as well as OPEB, web of tax obligation price of$ 0 as well as $0(* )-







Readjusted financial debt


$


34,957

$(* )31,488(* )Readjusted financial debt/ changed EBITDA



2.9

2.7



Similar Adjusted Financial Debt/ Adjusted EBITDA *

Dec 31,



Dec 31,

2022



2021

Readjusted financial debt/ Readjusted EBITDA




[a]

2.9

2.7(* )Variables Influencing Comparability:

Labor amassing change

(0.1)

N/A









Similar modified financial debt/ changed EBITDA *


2.8



2.7


Previous durations were modified to comply with the present year discussion, which gets rid of the effect of pension plan as well as OPEB when the web quantity stands for a financed quantity.


Modifications get rid of the effect of $69 million from take-home pay as well as$ 23 million from earnings tax obligation expenditure for the year finished December 31, 2022. See web page 10 for a settlement to GAAP.(* )*



Overall financial debt plus operating lease responsibilities plus after-tax unfunded pension plan as well as various other postretirement advantage( OPEB) responsibilities separated by take-home pay plus earnings tax obligation expenditure, devaluation, amortization, rate of interest expenditure, as well as changes for various other earnings as well as rate of interest on running lease responsibilities. Readjusted financial debt to changed EBITDA( revenues prior to rate of interest, tax obligations, devaluation, amortization, as well as changes for various other earnings as well as rate of interest on running lease responsibilities) as well as equivalent modified financial debt to changed EBITDA are taken into consideration a non-GAAP monetary step by SEC Law G as well as Product 10 of SEC Law S-K as well as might not be specified as well as determined by various other firms similarly. Our team believe these procedures are necessary to monitoring as well as capitalists in assessing the Firm’s capacity to maintain offered financial debt degrees (consisting of leases) with the money created from procedures. On top of that, an equivalent step is utilized by ranking firms when assessing the Firm’s credit score ranking. Readjusted financial debt to changed EBITDA as well as equivalent modified financial debt to changed EBITDA ought to be taken into consideration along with, instead of as an alternative for, take-home pay. The tables over give a settlement from take-home pay to changed EBITDA, financial debt to changed financial debt, as well as changed financial debt to changed EBITDA to equivalent modified financial debt to changed EBITDA. At December 31, 2022 as well as 2021, the step-by-step interest rate on running lease responsibilities was 3.3% as well as 3.2 %, specifically.


**


Stands for the theoretical rate of interest expenditure we would certainly sustain( making use of the step-by-step interest rate) if the residential or commercial property under our operating leases were had or represented as financing leases.

UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS



Non-GAAP Actions Settlement to GAAP

(* )Return typically Usual Investors’ Equity


Millions, Other Than Percents









2022



2021




Earnings


$



6,998




$


6,523



Ordinary equity




$


13,162


$

15,560



Return generally usual investors’ equity

53.2


%









41.9



%




Return on Invested Resources as Adjusted (ROIC) *


Many Millions, Other Than Percents



2022




2021


Earnings


$

6,998



$

6,523


Rate of interest expenditure


1,271

1,157



Rate of interest generally operating lease responsibilities

56


54



Tax obligations on rate of interest




( 304 )


( 280 )[a]



Internet operating earnings after tax obligations as changed




$


8,021


$

7,454



Ordinary equity

$


13,162



$




15,560



Ordinary financial debt











31,528



28,229




Ordinary operating lease responsibilities



1,695


1,682



Ordinary spent resources as changed




$


46,385









$[b]



45,471




Return on spent resources as changed


17.3



%




16.4




[a]

%

[b]

Similar Return on Invested Resources as Adjusted (Similar ROIC) *



2022

2021



Return on spent resources as changed

17.3

%

16.4

%

Variables Influencing Comparability:









Labor amassing change


0.1



N/A


Similar return on spent resources as changed


17.4

%



16.4

%


Modifications get rid of the effect of $69 million from both take-home pay for the year finished as well as investors’ equity since December 31, 2022. See web page 10 for a settlement to GAAP.


*

ROIC as well as equivalent ROIC are taken into consideration non-GAAP monetary procedures by SEC Law G as well as Product 10 of SEC Law S-K as well as might not be specified as well as determined by various other firms similarly. Our team believe these procedures are necessary to monitoring as well as capitalists in assessing the performance as well as performance of our lasting capital expense. On top of that, we presently utilize ROIC as an efficiency standard in identifying particular aspects of equity settlement for our execs. ROIC as well as equivalent ROIC ought to be taken into consideration along with, instead of as an alternative for, various other info offered based on GAAP. One of the most equivalent GAAP step is return generally usual investors’ equity. The tables over give settlements from return generally usual investors’ equity to ROIC as well as equivalent ROIC. At December 31, 2022 as well as 2021



, the step-by-step interest rate on running lease responsibilities was 3.3%

as well as 3.2%


, specifically.



UNION PACIFIC COMPANY AS WELL AS SUBSIDIARY FIRMS

Non-GAAP Actions Settlement to GAAP



Financial Efficiency *


Reported outcomes









Labor amassing


Readjusted outcomes



Many Millions, Other Than Per Share Quantities as well as Percents


( GAAP)


change

( non-GAAP)



For the Twelve Months Finished December 31, 2022

Payment as well as advantages expenditure


$



4,645




$


( 92 )



$




4,553


Overhead



14,958




( 92 )


14,866


Operating earnings

9,917



92

10,009


Revenue tax obligations


( 2,074)

( 23 )



( 2,097)

Earnings


6,998



69




7,067


Thinned Down EPS



11.21




0.12


11.33


Operating proportion

60.1



%

( 0.3 )


pts



59.8

%



Since December 31, 2022

Investors’ equity

$




12,163



$


69



$

12,232



*

The over table resolves our outcomes for the twelve months finished and also since December 31, 2022, to readjust outcomes that leave out the effect of particular products determined as impacting comparability. We utilize changed settlement as well as advantages expenditure, changed running expenditure, changed operating earnings, modified earnings tax obligations, changed take-home pay, changed watered down revenues per share (EPS), changed running proportion, as well as changed investors’ equity, as appropriate, to name a few procedures, to assess our real operating efficiency. We think these non-GAAP monetary procedures give beneficial info pertaining to revenues as well as service patterns by omitting details products that our team believe are not a sign of our continuous operating outcomes of our service, supplying a helpful method for capitalists to make a contrast of our efficiency with time as well as versus various other firms in our sector. Given that these are not procedures of efficiency determined based on GAAP, they ought to be taken into consideration along with, instead of as an alternative for, settlement as well as advantages expenditure, running expenditure, running earnings, earnings tax obligations, take-home pay, weakened EPS, running proportion, as well as investors’ equity as signs of running efficiency.

Resource Union Pacific Company