UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________ to ____________
Commission File Number
UNION PACIFIC CORPORATION
(Exact name of registrant as specified in its charter)
| |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each Class | Trading Symbol | Name of each exchange on which registered |
| | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☑ | Accelerated Filer | ☐ | Non-Accelerated Filer | ☐ | ||
Smaller Reporting Company | | Emerging Growth Company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
As of October 14, 2022, there were
UNION PACIFIC CORPORATION
AND SUBSIDIARY COMPANIES
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Statements of Income (Unaudited)
Union Pacific Corporation and Subsidiary Companies
Millions, Except Per Share Amounts, for the Three Months Ended September 30, |
2022 |
2021 |
||||||
Operating revenues: |
||||||||
Freight revenues |
$ | $ | ||||||
Other revenues |
||||||||
Total operating revenues |
||||||||
Operating expenses: |
||||||||
Compensation and benefits |
||||||||
Fuel |
||||||||
Purchased services and materials |
||||||||
Depreciation |
||||||||
Equipment and other rents |
||||||||
Other |
||||||||
Total operating expenses |
||||||||
Operating income |
||||||||
Other income, net (Note 6) |
||||||||
Interest expense |
( |
) | ( |
) | ||||
Income before income taxes |
||||||||
Income taxes (Note 7) |
( |
) | ( |
) | ||||
Net income |
$ | $ | ||||||
Share and Per Share (Note 8): |
||||||||
Earnings per share - basic |
$ | $ | ||||||
Earnings per share - diluted |
$ | $ | ||||||
Weighted average number of shares - basic |
||||||||
Weighted average number of shares - diluted |
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Union Pacific Corporation and Subsidiary Companies
Millions, for the Three Months Ended September 30, | 2022 | 2021 | ||||||
Net income | $ | $ | ||||||
Other comprehensive income/(loss): | ||||||||
Defined benefit plans | ||||||||
Foreign currency translation | ( | ) | ( | ) | ||||
Total other comprehensive income/(loss) [a] | ||||||||
Comprehensive income | $ | $ |
[a] |
Net of deferred taxes of ($6) million and ($8) million during the three months ended September 30, 2022 and 2021, respectively. |
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
Condensed Consolidated Statements of Income (Unaudited)
Millions, Except Per Share Amounts, for the Nine Months Ended September 30, |
2022 |
2021 |
||||||
Operating revenues: |
||||||||
Freight revenues |
$ | $ | ||||||
Other revenues |
||||||||
Total operating revenues |
||||||||
Operating expenses: |
||||||||
Compensation and benefits |
||||||||
Fuel |
||||||||
Purchased services and materials |
||||||||
Depreciation |
||||||||
Equipment and other rents |
||||||||
Other |
||||||||
Total operating expenses |
||||||||
Operating income |
||||||||
Other income, net (Note 6) |
||||||||
Interest expense |
( |
) | ( |
) | ||||
Income before income taxes |
||||||||
Income taxes (Note 7) |
( |
) | ( |
) | ||||
Net income |
$ | $ | ||||||
Share and Per Share (Note 8): |
||||||||
Earnings per share - basic |
$ | $ | ||||||
Earnings per share - diluted |
$ | $ | ||||||
Weighted average number of shares - basic |
||||||||
Weighted average number of shares - diluted |
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Union Pacific Corporation and Subsidiary Companies
Millions, for the Nine Months Ended September 30, |
2022 |
2021 |
||||||
Net income |
$ | $ | ||||||
Other comprehensive income/(loss): |
||||||||
Defined benefit plans |
||||||||
Foreign currency translation |
( |
) | ||||||
Total other comprehensive income/(loss) [a] |
||||||||
Comprehensive income |
$ | $ |
[a]
|
Net of deferred taxes of ($17) million and ($26) million during the nine months ended September 30, 2022 and 2021, respectively.
|
Condensed Consolidated Statements of Financial Position (Unaudited)
Union Pacific Corporation and Subsidiary Companies
Sep. 30, | Dec. 31, | |||||||
Millions, Except Share and Per Share Amounts | 2022 | 2021 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Short-term investments (Note 13) | ||||||||
Accounts receivable, net (Note 10) | ||||||||
Materials and supplies | ||||||||
Other current assets | ||||||||
Total current assets | ||||||||
Investments | ||||||||
Properties, net (Note 11) | ||||||||
Operating lease assets | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Common Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and other current liabilities (Note 12) | $ | $ | ||||||
Debt due within one year (Note 14) | ||||||||
Total current liabilities | ||||||||
Debt due after one year (Note 14) | ||||||||
Operating lease liabilities | ||||||||
Deferred income taxes | ||||||||
Other long-term liabilities | ||||||||
Commitments and contingencies (Note 15) | ||||||||
Total liabilities | ||||||||
Common shareholders' equity: | ||||||||
Common shares, $ par value, authorized; and | ||||||||
issued; and outstanding, respectively | ||||||||
Paid-in-surplus | ||||||||
Retained earnings | ||||||||
Treasury stock | ( | ) | ( | ) | ||||
Accumulated other comprehensive loss (Note 9) | ( | ) | ( | ) | ||||
Total common shareholders' equity | ||||||||
Total liabilities and common shareholders' equity | $ | $ |
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Union Pacific Corporation and Subsidiary Companies
Millions, for the Nine Months Ended September 30, |
2022 |
2021 |
||||||
Operating Activities |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||
Depreciation |
||||||||
Deferred and other income taxes |
||||||||
Other operating activities, net |
( |
) | ( |
) | ||||
Changes in current assets and liabilities: |
||||||||
Accounts receivable, net |
( |
) | ( |
) | ||||
Materials and supplies |
( |
) | ( |
) | ||||
Other current assets |
( |
) | ||||||
Accounts payable and other current liabilities |
( |
) | ||||||
Income and other taxes |
||||||||
Cash provided by operating activities |
||||||||
Investing Activities |
||||||||
Capital investments |
( |
) | ( |
) | ||||
Proceeds from asset sales |
||||||||
Maturities of short-term investments (Note 13) |
||||||||
Purchases of short-term investments (Note 13) |
( |
) | ( |
) | ||||
Other investing activities, net |
( |
) | ||||||
Cash used in investing activities |
( |
) | ( |
) | ||||
Financing Activities |
||||||||
Debt issued (Note 14) |
||||||||
Share repurchase programs (Note 16) |
( |
) | ( |
) | ||||
Dividends paid |
( |
) | ( |
) | ||||
Debt repaid |
( |
) | ( |
) | ||||
Net issued/(paid) commercial paper (Note 14) |
|
|
||||||
Debt exchange |
( |
) | ||||||
Other financing activities, net |
( |
) | ( |
) | ||||
Cash used in financing activities |
( |
) | ( |
) | ||||
Net Change in Cash, Cash Equivalents, and Restricted Cash |
( |
) | ||||||
Cash, cash equivalents, and restricted cash at beginning of year |
||||||||
Cash, cash equivalents, and restricted cash at end of period |
$ | $ | ||||||
Supplemental Cash Flow Information |
||||||||
Non-cash investing and financing activities: |
||||||||
Capital investments accrued but not yet paid |
$ | $ | ||||||
Common shares repurchased but not yet paid |
||||||||
Cash (paid for)/received from: |
||||||||
Income taxes, net of refunds |
$ | ( |
) | $ | ( |
) | ||
Interest, net of amounts capitalized |
( |
) | ( |
) | ||||
Reconciliation of cash, cash equivalents, and restricted cash |
||||||||
to the Condensed Consolidated Statement of Financial Position: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash equivalents in other current assets |
||||||||
Restricted cash equivalents in other assets |
||||||||
Total cash, cash equivalents and restricted cash equivalents per above |
$ | $ |
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
Condensed Consolidated Statements of Changes in Common Shareholders’ Equity (Unaudited)
Union Pacific Corporation and Subsidiary Companies
Millions | Common Shares | Treasury Shares | Common Shares | Paid-in-Surplus | Retained Earnings | Treasury Stock | AOCI [a] | Total | ||||||||||||||||||||||||
Balance at July 1, 2021 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||||||||||
Conversion, stock option exercises, forfeitures, ESPP, and other [b] | ( | ) | ||||||||||||||||||||||||||||||
Share repurchase programs (Note 16) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Dividends declared ($ per share) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
Balance at September 30, 2021 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
Balance at July 1, 2022 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||||||||||
Conversion, stock option exercises, forfeitures, ESPP, and other [b] | ||||||||||||||||||||||||||||||||
Share repurchase programs (Note 16) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Dividends declared ($ per share) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
Balance at September 30, 2022 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Millions | Common Shares | Treasury Shares | Common Shares | Paid-in-Surplus | Retained Earnings | Treasury Stock | AOCI [a] | Total | ||||||||||||||||||||||||
Balance at January 1, 2021 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||||||||||
Conversion, stock option exercises, forfeitures, ESPP, and other [b] | ||||||||||||||||||||||||||||||||
Share repurchase programs (Note 16) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Dividends declared ($ per share) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
Balance at September 30, 2021 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
Balance at January 1, 2022 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | ||||||||||||||||||||||||||||||||
Conversion, stock option exercises, forfeitures, ESPP, and other [b] | ( | ) | ||||||||||||||||||||||||||||||
Share repurchase programs (Note 16) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Dividends declared ($ per share) | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
Balance at September 30, 2022 | ( | ) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
[a] |
AOCI = Accumulated Other Comprehensive Income/Loss (Note 9) |
[b] | ESPP = employee stock purchase plan (Note 4) |
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
For purposes of this report, unless the context otherwise requires, all references herein to the “Corporation”, “Company”, “UPC”, “we”, “us”, and “our” mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which will be separately referred to herein as “UPRR” or the “Railroad”.
1. Basis of Presentation
Our Condensed Consolidated Financial Statements are unaudited and reflect all adjustments (consisting of normal and recurring adjustments) that are, in the opinion of management, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (GAAP). Pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Consolidated Financial Statements and notes thereto contained in our 2021 Annual Report on Form 10-K. Our Consolidated Statement of Financial Position at December 31, 2021, is derived from audited financial statements. The results of operations for the nine months ended September 30, 2022, are not necessarily indicative of the results for the entire year ending December 31, 2022.
The Condensed Consolidated Financial Statements are presented in accordance with GAAP as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).
2. Accounting Pronouncements
In November 2021, the FASB issued Accounting Standards Update No. (ASU) 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which requires business entities to provide certain disclosures when they have received government assistance and use a grant or contribution accounting model by analogy to other accounting guidance. The ASU was effective January 1, 2022, and had no material impact on our consolidated financial statements and related disclosures.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP principles to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued due to reference rate reform. This guidance was effective beginning on March 12, 2020, and can be adopted on a prospective basis no later than December 31, 2022, with early adoption permitted. The Company adopted the ASU, and it did not have an impact on our consolidated financial statements.
3. Operations and Segmentation
The Railroad, along with its subsidiaries and rail affiliates, is our
The following table represents a disaggregation of our freight and other revenues:
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Bulk | $ | $ | $ | $ | ||||||||||||
Industrial | ||||||||||||||||
Premium | ||||||||||||||||
Total freight revenues | $ | $ | $ | $ | ||||||||||||
Other subsidiary revenues | ||||||||||||||||
Accessorial revenues | ||||||||||||||||
Other | ||||||||||||||||
Total operating revenues | $ | $ | $ | $ |
Although our revenues are principally derived from customers domiciled in the U.S., the ultimate points of origin or destination for some products we transport are outside the U.S. Each of our commodity groups includes revenues from shipments to and from Mexico. Included in the above table are revenues from our Mexico business, which amounted to $
4. Stock-Based Compensation
We have several stock-based compensation plans where employees receive nonvested stock options, nonvested retention shares, and nonvested stock units. We refer to the nonvested shares and stock units collectively as “retention awards”. Starting in July 2021, employees are also able to participate in our employee stock purchase plan (ESPP).
Information regarding stock-based compensation appears in the table below:
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Stock-based compensation, before tax: | ||||||||||||||||
Stock options | $ | $ | $ | $ | ||||||||||||
Retention awards | ||||||||||||||||
ESPP | ||||||||||||||||
Total stock-based compensation, before tax | $ | $ | $ | $ | ||||||||||||
Excess tax benefits from equity compensation plans | $ | $ | $ | $ |
Stock Options – Stock options are granted at the closing price on the date of grant, have
The table below shows the annual weighted-average assumptions used for Black-Scholes valuation purposes:
Weighted-Average Assumptions | 2022 | 2021 | ||||||
Risk-free interest rate | % | % | ||||||
Dividend yield | % | % | ||||||
Expected life (years) | ||||||||
Volatility | % | % | ||||||
Weighted-average grant-date fair value of options granted | $ | $ |
The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant; the expected dividend yield is calculated as the ratio of dividends paid per share of common stock to the stock price on the date of grant; the expected life is based on historical and expected exercise behavior; and expected volatility is based on the historical volatility of our stock price over the expected life of the stock option.
A summary of stock option activity during the nine months ended September 30, 2022, is presented below:
Options (thous.) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (millions) | |||||||||||||
Outstanding at January 1, 2022 | $ | $ | ||||||||||||||
Granted | N/A | N/A | ||||||||||||||
Exercised | ( | ) | N/A | N/A | ||||||||||||
Forfeited or expired | ( | ) | N/A | N/A | ||||||||||||
Outstanding at September 30, 2022 | $ | $ | ||||||||||||||
Vested or expected to vest at September 30, 2022 | $ | $ | ||||||||||||||
Options exercisable at September 30, 2022 | $ | $ |
At September 30, 2022, there was $
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Intrinsic value of stock options exercised | $ | $ | $ | $ | ||||||||||||
Cash received from option exercises | ||||||||||||||||
Treasury shares repurchased for employee payroll taxes | ( | ) | ( | ) | ( | ) | ||||||||||
Tax benefit realized from option exercises | ||||||||||||||||
Aggregate grant-date fair value of stock options vested |
Retention Awards – Retention awards are granted at no cost to the employee, vest over periods lasting up to
Changes in our retention awards during the nine months ended September 30, 2022, were as follows:
Shares (thous.) | Weighted-Average Grant-Date Fair Value | |||||||
Nonvested at January 1, 2022 | $ | |||||||
Granted | ||||||||
Vested | ( | ) | ||||||
Forfeited | ( | ) | ||||||
Nonvested at September 30, 2022 | $ |
At September 30, 2022, there was $
Performance Retention Awards – In February 2022, our Board of Directors approved performance stock unit grants. This plan is based on performance targets for annual return on invested capital (ROIC) and operating income growth (OIG) compared to companies in the S&P 100 Industrials Index plus the Class I railroads. We define ROIC as net operating profit adjusted for interest expense (including interest on average operating lease liabilities) and taxes on interest divided by average invested capital adjusted for average operating lease liabilities.
Changes in our performance retention awards during the nine months ended September 30, 2022, were as follows:
Shares (thous.) | Weighted-Average Grant-Date Fair Value | |||||||
Nonvested at January 1, 2022 | $ | |||||||
Granted | ||||||||
Vested | ( | ) | ||||||
Unearned | ( | ) | ||||||
Forfeited | ( | ) | ||||||
Nonvested at September 30, 2022 | $ |
At September 30, 2022, there was $
5. Retirement Plans
We provide defined benefit retirement income to eligible non-union employees through qualified and non-qualified (supplemental) pension plans. Qualified and non-qualified pension benefits are based on years of service and the highest compensation during the latest years of employment, with specific reductions made for early retirements. Non-union employees hired on or after January 1, 2018, are no longer eligible for pension benefits, but are eligible for an enhanced 401(k) plan.
Expense
Pension expense is determined based upon the annual service cost of benefits (the actuarial cost of benefits earned during a period) and the interest cost on those liabilities, less the expected return on plan assets. The expected long-term rate of return on plan assets is applied to a calculated value of plan assets that recognizes changes in fair value over a
The components of our net periodic pension benefit/cost were as follows:
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost | ||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of actuarial loss | ||||||||||||||||
Net periodic pension (benefit)/cost | $ | ( | ) | $ | $ | $ |
Cash Contributions
For the nine months ended September 30, 2022, cash contributions totaled $
6. Other Income
Other income included the following:
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Real estate income [a] [b] | $ | $ | $ | $ | ||||||||||||
Net periodic pension benefit/(cost) | ||||||||||||||||
Environmental remediation and restoration | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other [a] | ( | ) | ( | ) | ||||||||||||
Total | $ | $ | $ | $ |
[a] | Prior periods have been reclassified to conform to the current period financial statement presentation. |
[b] |
The three months ended September 30, 2022, includes a $ |
7. Income Taxes
In the third quarter of 2022, the states of Iowa, Arkansas, and Idaho enacted legislation to reduce their corporate income tax rates for future years resulting in a $
In the second quarter of 2022, the state of Nebraska enacted legislation to reduce its corporate income tax rate for future years resulting in a $
In the second quarter of 2021, the states of Nebraska, Oklahoma, and Idaho enacted legislation to reduce their corporate income tax rates for future years resulting in a $
8. Earnings Per Share
The following table provides a reconciliation between basic and diluted earnings per share:
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions, Except Per Share Amounts | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic | ||||||||||||||||
Dilutive effect of stock options | ||||||||||||||||
Dilutive effect of retention shares and units | ||||||||||||||||
Diluted | ||||||||||||||||
Earnings per share – basic | $ | $ | $ | $ | ||||||||||||
Earnings per share – diluted | $ | $ | $ | $ | ||||||||||||
Stock options excluded as their inclusion would be anti-dilutive |
9. Accumulated Other Comprehensive Income/Loss
Reclassifications out of accumulated other comprehensive income/loss were as follows (net of tax):
Millions | Defined benefit plans | Foreign currency translation | Total | |||||||||
Balance at July 1, 2022 | $ |
| $ |
| $ |
| ||||||
Other comprehensive income/(loss) before reclassifications | - |
|
| |||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) [a] |
| - |
| |||||||||
Net quarter-to-date other comprehensive income/(loss), net of taxes of million | |
| | |||||||||
Balance at September 30, 2022 | $ |
| $ |
| $ |
| ||||||
Balance at July 1, 2021 | $ |
| $ |
| $ |
| ||||||
Other comprehensive income/(loss) before reclassifications |
|
|
| |||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) [a] | | - | | |||||||||
Net quarter-to-date other comprehensive income/(loss), net of taxes of million |
|
|
| |||||||||
Balance at September 30, 2021 | $ |
| $ |
| $ |
|
Millions | Defined benefit plans | Foreign currency translation | Total | |||||||||
Balance at January 1, 2022 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive income/(loss) before reclassifications | ||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) [a] | ||||||||||||
Net year-to-date other comprehensive income/(loss), net of taxes of million | ||||||||||||
Balance at September 30, 2022 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Balance at January 1, 2021 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive income/(loss) before reclassifications | ( | ) | ( | ) | ( | ) | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) [a] | ||||||||||||
Net year-to-date other comprehensive income/(loss), net of taxes of million | ( | ) | ||||||||||
Balance at September 30, 2021 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
[a] | The accumulated other comprehensive income/loss reclassification components are 1) prior service cost/credit and 2) net actuarial loss, which are both included in the computation of net periodic pension benefit/cost. See Note 5 Retirement Plans for additional details. |
10. Accounts Receivable
Accounts receivable includes freight and other receivables reduced by an allowance for doubtful accounts. At September 30, 2022, and December 31, 2021, our accounts receivable were reduced by $
Receivables Securitization Facility – On July 29, 2022, the Railroad completed the renewal of the receivables securitization facility (the Receivables Facility). The new $
The amount recorded under the Receivables Facility was million and $
The outstanding amount the Railroad maintains under the Receivables Facility may fluctuate based on current cash needs. The maximum allowed under the Receivables Facility is $
11. Properties
The following tables list the major categories of property and equipment, as well as the weighted-average estimated useful life for each category (in years):
Millions, Except Estimated Useful Life | Accumulated | Net Book | Estimated | |||||||||||||
As of September 30, 2022 | Cost | Depreciation | Value | Useful Life | ||||||||||||
Land | $ | $ | N/A | $ | N/A | |||||||||||
Road: | ||||||||||||||||
Rail and other track material | ||||||||||||||||
Ties | ||||||||||||||||
Ballast |