Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Union Pacific Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	804)	847)	856)	784)	752)
Compensation-related accruals	642)	618)	533)	938)	654)
Income and other taxes payable	491)	605)	685)	628)	823)
Interest payable	375)	372)	389)	379)	330)
Accrued casualty costs	278)	319)	307)	242)	187)
Current operating lease liabilities	270)	346)	355)	331)	330)
Equipment rents payable	102)	109)	98)	109)	98)
Other	532)	613)	460)	431)	404)
Accounts payable and other current liabilities	3,494)	3,829)	3,683)	3,842)	3,578)
Debt due within one year	1,520)	1,425)	1,423)	1,678)	2,166)
Current liabilities	5,014)	5,254)	5,106)	5,520)	5,744)
Debt due after one year	30,294)	29,767)	31,156)	31,648)	27,563)
Noncurrent operating lease liabilities	738)	925)	1,245)	1,300)	1,429)
Deferred income taxes	13,421)	13,151)	13,123)	13,033)	12,675)
Other long-term liabilities	1,764)	1,728)	1,714)	1,785)	1,953)
Long-term liabilities	46,217)	45,571)	47,238)	47,766)	43,620)
Total liabilities	51,231)	50,825)	52,344)	53,286)	49,364)
Common shares, $2.50 par value	2,783)	2,783)	2,782)	2,782)	2,781)
Paid-in-surplus	5,589)	5,334)	5,193)	5,080)	4,979)
Retained earnings	69,529)	65,628)	62,093)	58,887)	55,049)
Treasury stock	(58,843)	(56,132)	(54,666)	(54,004)	(47,734)
Accumulated other comprehensive loss	(591)	(723)	(614)	(582)	(914)
Common shareholders’ equity	18,467)	16,890)	14,788)	12,163)	14,161)
Total liabilities and common shareholders’ equity	69,698)	67,715)	67,132)	65,449)	63,525)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Overall, the liabilities of the company demonstrate a fluctuating pattern over the five-year period, with a general trend towards stabilization in the later years. Simultaneously, common shareholders’ equity exhibits a consistent upward trajectory, contributing to a steady increase in total equity. A closer examination of specific liability and equity components reveals nuanced shifts in the company’s financial structure.

Current Liabilities: Current liabilities decreased from US$5,744 million in 2021 to US$5,014 million in 2025. This decline is not consistent year-over-year, with a slight increase observed between 2022 and 2023. Accounts payable and other current liabilities generally followed this trend, decreasing from US$3,578 million to US$3,494 million. Debt due within one year experienced a more significant decrease, falling from US$2,166 million in 2021 to US$1,520 million in 2025, indicating a potential shift in short-term financing strategies.
Long-Term Liabilities: Long-term liabilities initially increased from US$43,620 million in 2021 to US$47,766 million in 2022, before decreasing to US$46,217 million in 2025. The largest component, debt due after one year, mirrored this pattern, peaking at US$31,648 million in 2022 and then declining. Deferred income taxes remained relatively stable, increasing gradually from US$12,675 million to US$13,421 million. Noncurrent operating lease liabilities showed a consistent decrease throughout the period.
Total Liabilities: Total liabilities increased from US$49,364 million in 2021 to US$53,286 million in 2022, then decreased to US$51,231 million in 2025. The fluctuations in total liabilities are largely driven by changes in both current and long-term debt, as well as deferred income taxes.
Shareholders’ Equity: Common shareholders’ equity demonstrated a consistent upward trend, increasing from US$14,161 million in 2021 to US$18,467 million in 2025. This growth was primarily fueled by increases in retained earnings, which rose from US$55,049 million to US$69,529 million. Paid-in-surplus also contributed to this growth, albeit to a lesser extent. Treasury stock consistently increased as a deduction from equity, indicating ongoing share repurchase activity. Accumulated other comprehensive loss remained relatively small but negative throughout the period.
Capital Structure: The proportion of liabilities to total capital decreased slightly over the period. In 2021, total liabilities represented approximately 77.8% of total liabilities and equity, while in 2025, this figure decreased to approximately 74.4%. This suggests a strengthening of the company’s equity base relative to its debt obligations. The consistent growth in retained earnings is a key driver of this shift.

In summary, the company’s financial position appears to be strengthening, characterized by a stable liability structure and a growing equity base. The reduction in short-term debt and the consistent increase in retained earnings are positive indicators of financial health.

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Union Pacific Corp. (NYSE:UNP)

Balance Sheet: Liabilities and Stockholders’ Equity