Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Union Pacific Corp., consolidated statement of comprehensive income
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
The financial data reveals several key trends over the five-year period ending in 2024. Net income shows a general upward trajectory with some fluctuations. Starting at 5,349 million USD in 2020, it increased significantly to 6,523 million USD in 2021, rose further to 6,998 million USD in 2022, then dipped to 6,379 million USD in 2023 before recovering to 6,747 million USD in 2024. This pattern suggests a generally positive but somewhat volatile earnings performance.
Defined benefit plans experienced substantial variability. In 2020, there was a notable negative value of -231 million USD, followed by a sharp positive swing to 723 million USD in 2021. Subsequent years saw smaller positive values of 280 million USD in 2022, then negative values again in 2023 and 2024 (-106 million USD and -14 million USD, respectively). This fluctuation indicates the impact of pension-related adjustments or actuarial gains and losses, which could influence overall financial stability.
Foreign currency translation adjustments fluctuated with no consistent trend. The company recorded negative adjustments in 2020 and 2021 (-6 million USD and -44 million USD), positive adjustments in 2022 and 2023 (52 million USD and 58 million USD), and once more a negative adjustment in 2024 (-95 million USD). Such volatility reflects exposure to currency exchange rate movements, which could affect comprehensive income.
An unrealized gain on derivative instruments was reported only in 2023, amounting to 16 million USD, indicating some derivative-related hedging or speculative activities during that year. No other years recorded values in this category, suggesting either limited use of derivatives or specific events occurring in 2023.
Other comprehensive income, net of deferred taxes, mirrors some of the trends seen in defined benefit plans and foreign currency translation items, with negative figures in 2020 (-237 million USD), a substantial positive amount in 2021 (679 million USD), followed by a decline to 332 million USD in 2022, and again turning negative in 2023 (-32 million USD) and 2024 (-109 million USD). This pattern highlights the influence of various non-operational items on overall equity beyond net income.
Comprehensive income, which aggregates net income and other comprehensive income items, follows a generally rising trend from 5,112 million USD in 2020 to a peak of 7,330 million USD in 2022, before decreasing to 6,347 million USD in 2023 and slightly recovering to 6,638 million USD in 2024. The variations correspond closely with the fluctuations observed in other comprehensive income components, suggesting their significant impact on overall comprehensive earnings performance.
- Net Income
- Generally increased from 2020 to 2022, slight decline in 2023, moderate recovery in 2024.
- Defined Benefit Plans
- High volatility with large positive and negative swings, contributing to related comprehensive income variance.
- Foreign Currency Translation
- Variable with alternating positive and negative values, reflecting currency risk exposure.
- Unrealized Gain on Derivatives
- Reported only in 2023, indicating periodic derivative activity.
- Other Comprehensive Income
- Fluctuated in line with defined benefit and currency translation items, influencing equity beyond earnings.
- Comprehensive Income
- Followed net income trends with additional volatility due to other comprehensive components, peaking in 2022 before declining.