View 2008 Fact Book - Union Pacific

CONSOLIDATED STATEMENTS OF INCOMEUnion Pacific CorporationIn millions (except per share), (unaudited), for the year ended December 31, 20081 2 3 4 Total YearOperating RevenuesFreight Revenues $4,059 $4,349 $4,630 $4,080 $17,118Operating Revenues 211 219 216 206 852Total Operating Revenues $4,270 $4,568 $4,846 $4,286 $17,970Operating ExpensesCompensation and Benefits 1,132 1,101 1,123 1,101 4,457Fuel 957 1,159 1,135 732 3,983Purchased Services and Materials 469 494 481 458 1,902Depreciation 340 346 348 353 1,387Equipment and Other Rents 342 338 326 320 1,326Other 242 199 218 181 840Total Operating Expenses 3,482 3,637 3,631 3,145 13,895Operating Income 788 931 1,215 1,141 4,075Other Income - Net 25 19 23 25 92Interest Expense (126) (128) (130) (127) (511)Income Before Income Taxes 687 822 1,108 1,039 3,656Income Tax Expense (244) (291) (405) (378) (1,318)Net Income $443 $531 $703 $661 $2,338Basic Earnings Per Share $0.86 $1.03 $1.39 $1.31 $4.58Diluted Earnings Per Share $0.85 $1.02 $1.38 $1.31 $4.54Weighted Average Number of Shares - Basic 518.4 514.3 506.6 503.2 510.6Weighted Average Number of Shares - Diluted 522.8 519.0 511.3 506.5 515.0Dividends Declared per Share $0.22 $0.22 $0.27 $0.27 $0.98Operating Ratio 81.5% 79.6% 74.9% 73.4% 77.3%Effective Tax Rate 35.5% 35.4% 36.6% 36.4% 36.1%In millions (except per share), (unaudited), for the year ended December 31, 20071 2 3 4 Total YearOperating RevenuesFreight Revenues $3,655 $3,853 $3,990 $3,988 $15,486Operating Revenues 194 193 201 209 797Total Operating Revenues $3,849 $4,046 $4,191 $4,197 $16,283Operating ExpensesCompensation and Benefits 1,165 1,145 1,095 1,121 4,526Fuel 662 753 786 903 3,104Purchased Services and Materials 443 478 479 456 1,856Depreciation 325 327 332 337 1,321Equipment and Other Rents 339 354 342 333 1,368Other 196 202 152 183 733Total Operating Expenses 3,130 3,259 3,186 3,333 12,908Operating Income 719 787 1,005 864 3,375Other Income - Net 15 36 25 40 116Interest Expense (113) (120) (124) (125) (482)Income Before Income Taxes 621 703 906 779 3,009Income Tax Expense (235) (257) (374) (288) (1,154)Net Income 386 446 532 491 1,855Basic Earnings Per Share (a) $0.71 $0.83 $1.01 $0.94 $3.49Diluted Earnings Per Share (a) $0.71 $0.82 $1.00 $0.93 $3.46Weighted Average Number of Shares - Basic (a) 541.1 536.4 523.5 523.5 531.9Weighted Average Number of Shares - Diluted (a) 545.6 541.5 531.4 528.6 536.8Dividends Declared per Share (a) $0.175 $0.175 $0.175 $0.22 $0.745Operating Ratio 81.3% 80.5% 76.0% 79.4% 79.3%Effective Tax Rate 37.8% 36.6% 41.3% 37.0% 38.4%Refer to the Union Pacific Corporation 2008 SEC Form 10-K for additional information, including audited financial statements and related footnotes.(a) Earnings per share and dividends have been restated to reflect the May 28, 2008 stock split. Shares have also been adjusted to reflect the split.31