Form 10-K - Union Pacific

8. Earnings Per Share
The following table provides a reconciliation between basic and diluted earnings per share for the years
ended December 31:
Millions, Except Per Share Amounts 2011 2010 2009
Net income $ 3,292 $ 2,780 $ 1,890
Weighted-average number of shares outstanding:
Basic 485.7 498.2 503.0
Dilutive effect of stock options 2.6 3.3 1.5
Dilutive effect of retention shares and units 1.5 1.4 1.3
Diluted 489.8 502.9 505.8
Earnings per share – basic $ 6.78 $ 5.58 $ 3.76
Earnings per share – diluted $ 6.72 $ 5.53 $ 3.74
Common stock options totaling 0.6 million, 0.3 million, and 4.6 million for 2011, 2010, and 2009,
respectively, were excluded from the computation of diluted earnings per share because the exercise
prices of these options exceeded the average market price of our common stock for the respective
periods, and the effect of their inclusion would be anti-dilutive.
9. Comprehensive Income/(Loss)
Comprehensive income/(loss) was as follows:
Millions 2011 2010 2009
Net income $ 3,292 $ 2,780 $ 1,890
Other comprehensive income/(loss):
Defined benefit plans (301) (88) 44
Foreign currency translation (20) 7 6
Derivatives 1 1 -
Total other comprehensive income/(loss) [a] (320) (80) 50
Total comprehensive income $ 2,972 $ 2,700 $ 1,940
[a]
Net of deferred taxes of $199 million, $57 million, and $(101) million during 2011, 2010, and 2009, respectively.
The after-tax components of accumulated other comprehensive loss were as follows:
Dec. 31, Dec. 31,
Millions 2011 2010
Defined benefit plans $ (1,004) $ (703)
Foreign currency translation (48) (28)
Derivatives (2) (3)
Total $ (1,054) $ (734)
10. Accounts Receivable
Accounts receivable includes freight and other receivables reduced by an allowance for doubtful
accounts. The allowance is based upon historical losses, credit worthiness of customers, and current
economic conditions. At December 31, 2011 and 2010, our accounts receivable were reduced by $9
million and $5 million, respectively. Receivables not expected to be collected in one year and the
associated allowances are classified as other assets in our Consolidated Statements of Financial
Position. At December 31, 2011 and 2010, receivables classified as other assets were reduced by
allowances of $41 million and $51 million, respectively.
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