Income Tax Accounting Policy
Union Pacific accounts for income taxes by recording taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in financial statements or tax returns. These expected future tax consequences are measured based on current tax law; the effects of future tax legislation are not anticipated. Future tax legislation, such as a change in the corporate tax rate, could have a material impact on Union Pacific's financial condition, results of operations, or liquidity.
When appropriate, Union Pacific records a valuation allowance against deferred tax assets to reflect that these tax assets may not be realized. In determining whether a valuation allowance is appropriate, Union Pacific considers whether it is more likely than not that all or some portion of deferred tax assets will not be realized, based on management's judgments using available evidence for purposes of estimating whether future taxable income will be sufficient to realize a deferred tax asset.
Union Pacific recognizes tax benefits that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for "unrecognized tax benefits" is recorded for any tax benefits claimed in Union Pacific's tax returns that do not meet these recognition and measurement standards.
Source: Union Pacific Corp., Annual Report
Effective Income Tax Rate (EITR)
You have visited 10 password protected pages for free. Others contain data covered by 
.
Sign Up Now to get full access to whole website and cut out all advertisements.
Union Pacific Corp., effective income tax rate (EITR) reconciliation
Source: Based on data from Union Pacific Corp. Annual Reports
| Item |
Description |
The company |
| Effective tax rate |
A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations. |
Union Pacific Corp.'s effective tax rate increased from 2009 to 2010 and from 2010 to 2011.
|
Deferred Tax Assets (Liabilities), Net
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
Union Pacific Corp., deferred tax assets (liabilities), net
Source: Based on data from Union Pacific Corp. Annual Reports
| Item |
Description |
The company |
| Deferred income tax asset |
The aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; net of deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. |
Union Pacific Corp.'s deferred income tax asset increased from 2009 to 2010 but then slightly declined from 2010 to 2011.
|
| Net deferred income tax liability |
For entities that net deferred tax assets and tax liabilities, represents the unclassified net amount of deferred tax assets and liabilities as of the balance sheet date, which result from applying the applicable enacted tax rate to net temporary differences and carryforwards pertaining to assets or liabilities. A temporary difference is a difference between the tax basis of an asset or liability and its carrying amount in the financial statements prepared in accordance with generally accepted accounting principles that will reverse in ensuing periods. |
Union Pacific Corp.'s net deferred income tax liability declined from 2009 to 2010 and from 2010 to 2011.
|
