Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Union Pacific Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	1,417)	1,465)	1,446)	1,026)	1,000)
State	314)	340)	347)	259)	254)
Foreign	6)	7)	8)	6)	8)
Current tax expense	1,737)	1,812)	1,801)	1,291)	1,262)
Federal	219)	320)	199)	295)	417)
State	(104)	(59)	(44)	45)	128)
Foreign	2)	1)	(1)	—)	21)
Deferred and other tax expense	117)	262)	154)	340)	566)
Income tax expense	1,854)	2,074)	1,955)	1,631)	1,828)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Union Pacific Corp. current tax expense increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Deferred and other tax expense	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Union Pacific Corp. deferred and other tax expense increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Union Pacific Corp. income tax expense increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Union Pacific Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State statutory rates, net of federal benefits	3.40%	3.60%	3.70%	3.70%	3.70%
Deferred tax adjustments	-1.20%	-1.00%	-0.60%	-0.10%	-0.10%
Dividends received deduction	-0.60%	-0.50%	-0.50%	-0.50%	-0.60%
Excess tax benefits from equity compensation plans	-0.10%	-0.20%	-0.30%	-0.80%	-0.70%
Other	0.00%	0.00%	-0.20%	0.10%	0.30%
Effective tax rate	22.50%	22.90%	23.10%	23.40%	23.60%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Union Pacific Corp. effective tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Union Pacific Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating lease liabilities	394)	401)	434)	396)	453)
Accrued casualty costs	168)	164)	157)	143)	146)
Accrued wages	50)	50)	45)	40)	45)
Stock compensation	26)	26)	26)	26)	37)
Retiree benefits	—)	—)	39)	255)	171)
Other	186)	238)	256)	208)	128)
Deferred income tax assets	824)	879)	957)	1,068)	980)
Property	(12,987)	(12,910)	(12,657)	(12,474)	(12,184)
Operating lease assets	(404)	(411)	(441)	(397)	(447)
Other	(556)	(591)	(534)	(444)	(341)
Deferred income tax liabilities	(13,947)	(13,912)	(13,632)	(13,315)	(12,972)
Net deferred income tax asset (liability)	(13,123)	(13,033)	(12,675)	(12,247)	(11,992)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred income tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Union Pacific Corp. deferred income tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Net deferred income tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Union Pacific Corp. net deferred income tax asset (liability) decreased from 2021 to 2022 and from 2022 to 2023.

Union Pacific Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Net deferred income tax liability	13,123)	13,033)	12,675)	12,247)	11,992)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Net deferred income tax liability	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Union Pacific Corp. net deferred income tax liability increased from 2021 to 2022 and from 2022 to 2023.

Union Pacific Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Liabilities
Total liabilities (as reported)	52,344)	53,286)	49,364)	45,440)	43,545)
Less: Noncurrent deferred tax liabilities, net	13,123)	13,033)	12,675)	12,247)	11,992)
Total liabilities (adjusted)	39,221)	40,253)	36,689)	33,193)	31,553)
Adjustment to Common Shareholders’ Equity
Common shareholders’ equity (as reported)	14,788)	12,163)	14,161)	16,958)	18,128)
Less: Net deferred tax assets (liabilities)	(13,123)	(13,033)	(12,675)	(12,247)	(11,992)
Common shareholders’ equity (adjusted)	27,911)	25,196)	26,836)	29,205)	30,120)
Adjustment to Net Income
Net income (as reported)	6,379)	6,998)	6,523)	5,349)	5,919)
Add: Deferred income tax expense (benefit)	117)	262)	154)	340)	566)
Net income (adjusted)	6,496)	7,260)	6,677)	5,689)	6,485)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Union Pacific Corp., Financial Data: Reported vs. Adjusted

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Union Pacific Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	26.45%	28.13%	29.92%	27.38%	27.27%
Adjusted net profit margin	26.93%	29.19%	30.62%	29.13%	29.87%
Financial Leverage
Reported financial leverage	4.54	5.38	4.49	3.68	3.40
Adjusted financial leverage	2.41	2.60	2.37	2.14	2.05
Return on Equity (ROE)
Reported ROE	43.14%	57.54%	46.06%	31.54%	32.65%
Adjusted ROE	23.27%	28.81%	24.88%	19.48%	21.53%
Return on Assets (ROA)
Reported ROA	9.50%	10.69%	10.27%	8.57%	9.60%
Adjusted ROA	9.68%	11.09%	10.51%	9.12%	10.52%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Union Pacific Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Union Pacific Corp. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Union Pacific Corp. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Union Pacific Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Union Pacific Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,379)	6,998)	6,523)	5,349)	5,919)
Operating revenues	24,119)	24,875)	21,804)	19,533)	21,708)
Profitability Ratio
Net profit margin¹	26.45%	28.13%	29.92%	27.38%	27.27%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,496)	7,260)	6,677)	5,689)	6,485)
Operating revenues	24,119)	24,875)	21,804)	19,533)	21,708)
Profitability Ratio
Adjusted net profit margin²	26.93%	29.19%	30.62%	29.13%	29.87%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Operating revenues
= 100 × 6,379 ÷ 24,119 = 26.45%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Operating revenues
= 100 × 6,496 ÷ 24,119 = 26.93%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Union Pacific Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	67,132)	65,449)	63,525)	62,398)	61,673)
Common shareholders’ equity	14,788)	12,163)	14,161)	16,958)	18,128)
Solvency Ratio
Financial leverage¹	4.54	5.38	4.49	3.68	3.40
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets	67,132)	65,449)	63,525)	62,398)	61,673)
Adjusted common shareholders’ equity	27,911)	25,196)	26,836)	29,205)	30,120)
Solvency Ratio
Adjusted financial leverage²	2.41	2.60	2.37	2.14	2.05

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Common shareholders’ equity
= 67,132 ÷ 14,788 = 4.54

² Adjusted financial leverage = Total assets ÷ Adjusted common shareholders’ equity
= 67,132 ÷ 27,911 = 2.41

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Union Pacific Corp. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,379)	6,998)	6,523)	5,349)	5,919)
Common shareholders’ equity	14,788)	12,163)	14,161)	16,958)	18,128)
Profitability Ratio
ROE¹	43.14%	57.54%	46.06%	31.54%	32.65%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,496)	7,260)	6,677)	5,689)	6,485)
Adjusted common shareholders’ equity	27,911)	25,196)	26,836)	29,205)	30,120)
Profitability Ratio
Adjusted ROE²	23.27%	28.81%	24.88%	19.48%	21.53%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Common shareholders’ equity
= 100 × 6,379 ÷ 14,788 = 43.14%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted common shareholders’ equity
= 100 × 6,496 ÷ 27,911 = 23.27%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Union Pacific Corp. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,379)	6,998)	6,523)	5,349)	5,919)
Total assets	67,132)	65,449)	63,525)	62,398)	61,673)
Profitability Ratio
ROA¹	9.50%	10.69%	10.27%	8.57%	9.60%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	6,496)	7,260)	6,677)	5,689)	6,485)
Total assets	67,132)	65,449)	63,525)	62,398)	61,673)
Profitability Ratio
Adjusted ROA²	9.68%	11.09%	10.51%	9.12%	10.52%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 6,379 ÷ 67,132 = 9.50%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 6,496 ÷ 67,132 = 9.68%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Union Pacific Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Union Pacific Corp. (NYSE:UNP)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Union Pacific Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Union Pacific Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)