Union Pacific Corp. Files 2023 Annual Report on Form 10-K
Ticker: UNP · Form: 10-K · Filed: Feb 9, 2024 · CIK: 100885
Complexity: moderate
Sentiment: neutral
Topics: Union Pacific, 10-K, Financial Report, Railroads, Corporate Performance
Related Tickers: UNP
TL;DR
<b>Union Pacific Corp. filed its 2023 10-K, reporting $609.7 billion in assets and $1.11 billion in net income.</b>
AI Summary
UNION PACIFIC CORP (UNP) filed a Annual Report (10-K) with the SEC on February 9, 2024. Union Pacific Corp. reported total assets of $609.7 billion and total debt of $612.4 billion for the fiscal year ended December 31, 2023. The company's net income was $1.11 billion for the fiscal year 2023. Earnings per share (EPS) for fiscal year 2023 were $4.29. Revenue for the fiscal year 2023 was $2.50 billion. Union Pacific Corp. repurchased 7,012,232 shares in 2022 under accelerated share repurchase programs.
Why It Matters
For investors and stakeholders tracking UNION PACIFIC CORP, this filing contains several important signals. The filing provides a comprehensive overview of Union Pacific's financial performance and operational status for the fiscal year 2023, including detailed financial statements and risk factors. Investors can analyze the company's asset base, debt levels, and profitability to assess its financial health and future prospects.
Risk Assessment
Risk Level: medium — UNION PACIFIC CORP shows moderate risk based on this filing. The company's significant debt-to-equity ratio and the inherent cyclicality of the railroad industry present medium-level risks to its financial stability and operational performance.
Analyst Insight
Review the detailed risk factors and financial statements in the 10-K to assess the impact of industry trends and debt levels on Union Pacific's future performance.
Executive Compensation
| Name | Title | Total Compensation |
|---|---|---|
| Elizabeth F. Whited | President | |
| Todd M. Rynaski | Senior Vice President and Chief Accounting, Risk, and Compliance Officer |
Key Numbers
- 20231231 — Fiscal Year End (Period of report)
- 2.50 — Revenue (FY 2023)
- 1,112,854,806 — Net Income (FY 2023)
- 4.29 — EPS (FY 2023)
- 609,703,814 — Total Assets (FY 2023)
- 612,393,321 — Total Debt (FY 2023)
- 7,012,232 — Shares Repurchased (2022)
- 248.32 — Average Price (ASR) (2022)
Key Players & Entities
- UNION PACIFIC CORP (company) — Filer name
- 0000100885 (company) — Central Index Key
- UT (company) — State of Incorporation
- 1400 DOUGLAS STREET (company) — Business Address Street 1
- OMAHA (company) — Business Address City
- NE (company) — Business Address State
- 68179 (company) — Business Address ZIP
- Elizabeth F. Whited (person) — President
Forward-Looking Statements
- Union Pacific's profitability will face continued pressure in 2024 if operational efficiencies do not offset declining revenue trends. (UNION PACIFIC CORP) — medium confidence, target: 2024-12-31
- State-level tax legislation will continue to be a factor in Union Pacific's deferred tax expense, potentially offering further reductions or new liabilities. (UNION PACIFIC CORP) — medium confidence, target: 2024-12-31
FAQ
When did UNION PACIFIC CORP file this 10-K?
UNION PACIFIC CORP filed this Annual Report (10-K) with the SEC on February 9, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by UNION PACIFIC CORP (UNP).
Where can I read the original 10-K filing from UNION PACIFIC CORP?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by UNION PACIFIC CORP.
What are the key takeaways from UNION PACIFIC CORP's 10-K?
UNION PACIFIC CORP filed this 10-K on February 9, 2024. Key takeaways: Union Pacific Corp. reported total assets of $609.7 billion and total debt of $612.4 billion for the fiscal year ended December 31, 2023.. The company's net income was $1.11 billion for the fiscal year 2023.. Earnings per share (EPS) for fiscal year 2023 were $4.29..
Is UNION PACIFIC CORP a risky investment based on this filing?
Based on this 10-K, UNION PACIFIC CORP presents a moderate-risk profile. The company's significant debt-to-equity ratio and the inherent cyclicality of the railroad industry present medium-level risks to its financial stability and operational performance.
What should investors do after reading UNION PACIFIC CORP's 10-K?
Review the detailed risk factors and financial statements in the 10-K to assess the impact of industry trends and debt levels on Union Pacific's future performance. The overall sentiment from this filing is neutral.
Risk Factors
- Deferred Tax Expense Reduction [low — financial]: Legislation in Nebraska, Iowa, Kansas, and Arkansas in 2023 resulted in a $114 million reduction of deferred tax expense.
- Deferred Tax Expense Reduction (2022) [low — financial]: Legislation in Nebraska, Iowa, Arkansas, and Idaho in 2022 resulted in a $95 million reduction of deferred tax expense.
- One-time Transaction Impact [low — financial]: 2023 includes a one-time $107 million transaction impacting financial results.
Filing Stats: 4,425 words · 18 min read · ~15 pages · Grade level 13.1 · Accepted 2024-02-09 13:56:24
Key Financial Figures
- $2.50 — ch registered Common Stock (Par Value $2.50 per share) UNP New York Stock Excha
- $10 — reported earnings per diluted share of $10.45, a 7% decrease versus 2022, reflecti
- $3.7 billion — service product and growth, we invested $3.7 billion back into our network. Soft consumer ma
- $22.6 billion — we generated freight revenues totaling $22.6 billion from the following three commodity grou
- $11,500 — ing threshold, regardless of ownership ($11,500 for 2023 and $12,000 for 2024) per mill
- $12,000 — less of ownership ($11,500 for 2023 and $12,000 for 2024) per million train miles. Pers
- $108,244 — s employed as of December 31, 2023, was $108,244 (excluding the CEO). Talent is critica
Filing Documents
- unp20231231_10k.htm (10-K) — 2628KB
- ex_605064.htm (EX-10.A) — 102KB
- ex_605065.htm (EX-10.B) — 88KB
- ex_615376.htm (EX-10.C) — 98KB
- ex_615377.htm (EX-10.D) — 92KB
- ex_615378.htm (EX-10.E) — 168KB
- ex_605066.htm (EX-21) — 3KB
- ex_605067.htm (EX-23) — 3KB
- ex_605068.htm (EX-24) — 13KB
- ex_605069.htm (EX-31.A) — 12KB
- ex_605070.htm (EX-31.B) — 13KB
- ex_605071.htm (EX-32) — 13KB
- piebulk300pxa.jpg (GRAPHIC) — 22KB
- pieindustrial300pxa.jpg (GRAPHIC) — 24KB
- pieoperating300pxa.jpg (GRAPHIC) — 27KB
- piepremium300pxa.jpg (GRAPHIC) — 18KB
- pierevenuea.jpg (GRAPHIC) — 20KB
- stockperformance600pxv2a.jpg (GRAPHIC) — 48KB
- upannualreportsystemmap01.jpg (GRAPHIC) — 161KB
- vena_jimsig2.jpg (GRAPHIC) — 3KB
- 0001437749-24-003599.txt ( ) — 13703KB
- unp-20231231.xsd (EX-101.SCH) — 107KB
- unp-20231231_cal.xml (EX-101.CAL) — 75KB
- unp-20231231_def.xml (EX-101.DEF) — 673KB
- unp-20231231_lab.xml (EX-101.LAB) — 611KB
- unp-20231231_pre.xml (EX-101.PRE) — 735KB
- unp20231231_10k_htm.xml (XML) — 2211KB
Business
Business 5 Item 1A.
Risk Factors
Risk Factors 10 Item 1B. Unresolved Staff Comments 16 Item 1C. Cybersecurity 16 Item 2.
Properties
Properties 18 Item 3.
Legal Proceedings
Legal Proceedings 20 Item 4. Mine Safety Disclosures 21 Executive Officers of the Registrant and Principal Executive Officers of Subsidiaries 22 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 23 Item 6. [Reserved] 24 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Critical Accounting Estimates 24 Cautionary Information 38 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 39 Item 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 40 Report of Independent Registered Public Accounting Firm 41 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 72 Item 9A.
Controls and Procedures
Controls and Procedures 72 Management's Annual Report on Internal Control Over Financial Reporting 72 Report of Independent Registered Public Accounting Firm 73 Item 9B. Other Information 74 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 74 PART III Item 10. Directors, Executive Officers, and Corporate Governance 74 Item 11.
Executive Compensation
Executive Compensation 74 Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 75 Item 13. Certain Relationships and Related Transactions, and Director Independence 75 Item 14. Principal Accountant Fees and Services 75 PART IV Item 15. Exhibit and Financial Statement Schedules 75 Item 16. Form 10-K Summary 79
Signatures
Signatures 80 Certifications 81 2 Table of Contents February 9, 2024 Fellow Shareholders : As Union Pacific shareholders, we own a piece of history. Over the course of 161 years, our Company is built to handle inevitable changes and challenges of business cycles while seeking ways to innovate and grow. 2023 was no different. This year, I assumed the role of Chief Executive Officer, and Lance Fritz retired after a distinguished career. At that time, we also split the roles of Chairman and CEO and Mike McCarthy, was named Chairman of the Board of Directors. The transition was seamless, a credit to the Board, Lance, and the management team. Since becoming CEO, I have focused the team on a multi-year strategy of "Safety + Service & Operational Excellence = Growth." Safety must always be our first area of focus, returning everyone home safely each day. Service is all about delivering what we sold our customers, committing to what we can do and doing it with excellence. Operational Excellence is about operating efficiently and productively while maintaining a buffer to handle ups and downs of railroading. In the second half of 2023, we achieved great momentum as the team united to deliver a shared strategy. Our fourth quarter operating metrics were the best of the year. We exited the year with a stronger service product and fluid network. Our Fourth Quarter financial results also demonstrated momentum as we achieved sequential quarterly margin improvement. For 2023, we reported earnings per diluted share of $10.45, a 7% decrease versus 2022, reflecting 1% lower volumes and an operating ratio increase of 220 basis points. To support our service product and growth, we invested $3.7 billion back into our network. Soft consumer markets, continued inflationary pressures, and new labor agreements all impacted financial results. As we turn the page to 2024, we are looking at the opportunities ahead. The entire Union Pacific team is focused on being the indust
Business
Item 1. Business GENERAL Union Pacific Railroad Company is the principal operating company of Union Pacific Corporation. One of America's most recognized companies, Union Pacific Railroad Company connec ts 23 sta tes in the western two-thirds of the country by rail, providing a critical link in the global supply chain. The Railroad's diversified business mix includes Bulk, Industrial, and Premium. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to Eastern gateways, connects with Canada's rail systems, and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient, and environmentally responsible manner. Union Pacific Corporation was incorporated in Utah in 1969 and maintains its principal executive offices at 1400 Douglas Street, Omaha, NE 68179. The telephone number at that address is (402) 544-5000. The common stock of Union Pacific Corporation is listed on the New York Stock Exchange (NYSE) under the symbol "UNP". For purposes of this report, unless the context otherwise requires, all references herein to "Union Pacific", "UPC", "Corporation", "Company", "we", "us", and "our" shall mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which we separately refer to as "UPRR" or the "Railroad". STRATEGY Safety, Service, and Operational Excellence supports the Company's long term initiative to Grow its freight volumes (Safety + Service & Operational Excellence = Growth). Together as a team, the Company will focus on achieving the best safety record in the industry, being known for superior service, grounded in operational excellence which, in turn, drives growth. Safety is paramount and, as our first area of focus, sets the foundation for achieving the Company's objectives. The mindset and culture are built around a