View 2010 Fact Book - Union Pacific

Table of Contents
Overview
Financials
Company Overview.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Key Metrics and Facts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Financial Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Manifest Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Bulk Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Premium Network.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Operations Review .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Marketing Review.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Capital Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Capacity and Commercial Projects .. . . . . . . . . . . . . . . . . . . 14
Track and Terminal Density. . . . . . . . . . . . . . . . . . . . . . . . . . 15
Selected Financial Data .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . 35
Consolidated Statements of Financial Position. . . . . . . . . . . 36
Consolidated Statements of Cash Flow.. . . . . . . . . . . . . . . . 37
Financial and Operating Statistics. . . . . . . . . . . . . . . . . . . . . 38
Non-GAAP Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Non-GAAP Reconciliations
Free Cash Flow .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Return on Invested Capital (ROIC). . . . . . . . . . . . . . . . . . 41
Debt to Capital/Adjusted Debt to Capital . . . . . . . . . . . . . 41
Cautionary Information .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Markets
Agricultural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Automotive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Chemicals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Industrial Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Intermodal.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Investor Inquiries
Union Pacific’s investor relations are coordinated through
the Corporate Treasurer. Requests for interviews, investor
packages and general information should be directed to:
(402) 544-4227 or (877) 547-7261 or investor.relations@up.com
Website Information
For immediate receipt of new information as it becomes
available, we invite you to regularly visit www.up.com. In the
Investors section, you can view on-line or download a variety
of informative documents, including SEC filings, annual reports,
proxy statements, quarterly earnings, press releases, company
presentations and corporate governance information. For
automatic updates, please subscribe to the Company’s RSS
(Really Simple Syndication) feed which provides links to new
headlines and summaries through your news reader.
1

Company Overview
Union Pacific Railroad Company is the principal operating
subsidiary of Union Pacific Corporation and one of America’s
leading transportation companies (Company, UP or Railroad).
The Railroad’s network covers 23 states in the western
two-thirds of the country and serves many of the fastestgrowing
U.S. population centers, providing a fuel-efficient,
environmentally responsible and safe mode of freight
transportation. The Company’s diversified business mix
includes Agricultural Products, Automotive, Chemicals, Energy,
Industrial Products and Intermodal. The Company connects with
other rail carriers to move freight all across North America and
Mexico. UP serves eastern markets through major gateways
in Chicago, St. Louis, Memphis and New Orleans. In addition,
UP is the only railroad serving all six major Mexican gateways,
and operates key north/south corridors for interchange traffic
with the Canadian and Mexican rail systems. UP accesses
markets in Canada through both the Eastport gateway in Idaho
and exchange points in Minnesota, Wisconsin and Illinois. This
network, combined with the well-balanced and diverse traffic
mix, makes UP the premier rail franchise in North America. UP
generated freight revenue of $16.1 billion in 2010.
The strength of UP’s diverse franchise, efficient asset utilization,
strong pricing opportunities and solid network infrastructure
enable it to provide customers with consistent, reliable service
and shareholders with higher returns.
VISION
Building America
Our vision symbolizes the Union Pacific experience for all
the people whose lives we touch. It connects the importance
of UP’s rail transportation to America’s economy, honors
the generations that preceded us and is the promise for the
generations that will follow us.
MISSION
The Men and Women of Union Pacific Are Dedicated to
Serve.
Union Pacific works for the good of our customers, our
shareholders and one another. Our commitment defines us and
drives the economic strength of our company and our country.
2

Key Metrics and Facts
Key Financial and Operating Metrics 2010 2009 2008
Operating Revenues (millions) $16,965 $14,143 $17,970
Operating Income (millions) $4,981 $3,379 $4,070
Operating Ratio 70.6% 76.1% 77.4%
Operating Margin 29.4% 23.9% 22.6%
Employees (average) 42,884 43,531 48,242
Average Fuel Price Per Gallon Consumed $2.29 $1.75 $3.15
Cash Capital Expenditures (millions) $2,482 $2,354 $2,754
Long-Term Leases (millions) (a) $ - $100 $353
Revenue Carloads (thousands) 8,815 7,786 9,261
Revenue Ton-Miles (billions) 520 479 563
Gross Ton-Miles (billions) 931 846 1,020
Average Train Speed (miles per hour) (b) 26.2 27.3 23.5
Average System Dwell (hours) (b) 25.4 24.8 24.9
Average Rail Car Inventory (b) 274,450 283,102 300,679
Fuel Consumed (millions of gallons) 1,051 979 1,229
GTMs per Employee (millions) 21.72 19.44 21.15
(a) Represents the net present value of long-term operating and/or capital leases for new equipment.
(b) As reported to the Association of American Railroads (AAR).
2010 Facts (As of 12/31/10)
Track Miles
Route Miles 31,953
Other Main Line 6,596
Passing Lines and Turnouts 3,118
Switching and Classification Yard Lines 9,006
Total Track Miles 50,673
Track Miles of Rail Installed and Replaced *
New 594
Used 201
Total 795
Track Miles of Continuous Welded Rail 28,254
Track Miles Under Centralized Traffic Control 21,501
Track Miles Ballasted 10,883
Ties Installed and Replaced (thousands) * 4,559
Rail Equipment
Average
Locomotives Owned Leased Total Age (yrs.)
Multiple Purpose 4,935 2,628 7,563 15.9
Switching 431 26 457 31.5
Other 95 59 154 25.0
Total Locomotives 5,461 2,713 8,174 N/A
Average
Freight Cars Owned Leased Total Age (yrs.)
Covered Hoppers 12,123 18,252 30,375 28.7
Open Hoppers 11,854 4,351 16,205 31.2
Gondolas 6,500 6,190 12,690 28.1
Boxcars 5,702 1,857 7,559 28.0
Refrigerated Cars 2,584 4,331 6,915 22.6
Flat Cars 2,885 664 3,549 33.3
Other 104 456 560 N/A
Total Freight Cars 41,752 36,101 77,853 N/A
Average
Highway Revenue Equipment Owned Leased Total Age (yrs.)
Containers 9,401 39,234 48,635 5.2
Chassis 2,669 23,210 25,879 7.3
Total Highway Revenue Equipment 12,070 62,444 74,514 N/A
* Represent “all-in” numbers, which include engineering replacement programs,
commercial facility and capacity work, and other miscellaneous rail and tie projects.
3

Financial Results
Union Pacific reported operating revenue of nearly $17 billion
in 2010, a 20 percent increase from the prior year. Volume
growth of 13 percent, combined with core pricing gains and
increased fuel surcharges drove the improvement. Net income
jumped 47 percent to a record $2.8 billion. In May of 2010,
the Company resumed its share repurchase program, making
opportunistic purchases based on market prices, reducing the
outstanding share balance 1 percent during the year. Earnings
per share grew 48 percent year-over-year to $5.53. Record net
income drove return on invested capital up 2.6 points to a bestever
10.8 percent.
Better economic conditions increased demand for rail services
across nearly all of Union Pacific’s markets in 2010. Each of
UP’s six business teams saw volume growth, with particular
strength in automotive, intermodal and industrial products.
The Railroad efficiently leveraged the returning traffic, utilizing
existing assets to minimize year-over-year operational cost
increases. As a result, the Company reported a record
operating ratio of 70.6 percent for the year, outpacing the
previous record of 76.1 percent set in 2009.
Operating expenses grew 11 percent, with higher yearover-year
diesel fuel prices contributing nearly half of the
increase. Fuel prices generally increased throughout 2010
as the economy improved, driving Union Pacific’s average
diesel fuel price per gallon up nearly 20 percent from January
to December. UP’s average diesel fuel price for 2010 was
$2.29 per gallon, up 31 percent from $1.75 per gallon in
2009. The Railroad’s fuel consumption improved 3 percent
in 2010, partially offsetting the higher fuel prices and saving
approximately 27 million gallons of fuel.
Volume improvement, efficient operations and pricing gains
generated strong incremental margins throughout 2010.
Volumes are a critical component to this achievement, as
quarterly incremental margins of approximately 60 percent
corresponded with double-digit volume growth.
27%
-5%
4Q09
Return on Invested Capital
(Percent)
10.8
10.2
8.8
8.2
2007 2008
79.3
2007 2008 2009 2010
$0.27
Incremental Margins
60% 60%
58%
13%
1Q10
Operating Ratio
(Percent)
77.4
18%
2Q10
76.1
14%
3Q10
Year-over-year volume growth
$0.33
2009 2010
70.6
Declared Dividends Per Share
(2010)
+41%
$0.38
$0.33
48%
9%
4Q10
The Company’s free cash flow more than doubled in 2010 to
$1.4 billion, supporting two quarterly dividend increases during
the year. Quarterly dividends grew from $0.27 to $0.33 and
then to $0.38 per share, for a total increase of 41 percent.
1Q
2Q
3Q
4Q
4

Manifest Network
Freight Traffic - 2010 Carloads
Premium
44%
Bulk
32%
Manifest
24%
Manifest traffic includes individual carload or less-than-trainload
business, involving commodities such as lumber, steel, paper,
food and chemicals, all transported from thousands of locations
across Union Pacific’s network. The Railroad’s extensive
manifest infrastructure includes terminal locations throughout
its system and storage-in-transit facilities in the Gulf Coast
region, which allow our chemical customers to store their
products at our facilities prior to final delivery. This unique
aspect of UP’s franchise serves customers in virtually every
segment of the economy. Through rail industry partnerships,
UP can access approximately 90 percent of the North American
population. In 2010, manifest traffic represented 24 percent of
the Company’s volume and 41 percent of freight revenue.
5

Bulk Network
Freight Traffic - 2010 Carloads
Premium
44%
Manifest
24%
Bulk
32%
Bulk traffic primarily consists of coal, grain, soda ash and rock
shipped in unit trains – trains transporting a single commodity
from one origin to one destination. Most of UP’s coal traffic
originates from the Southern Powder River Basin (SPRB) of
northeastern Wyoming and the Uinta Basin of Colorado and
Utah. Grain and grain products move out of the Midwest to
serve domestic markets, Mexico and export ports in the Gulf
Coast and Pacific Northwest (PNW). Producers mine soda ash
near Green River, Wyoming destined for export ports in the
Gulf Coast and PNW. Rock trains move primarily in and around
Texas. The Railroad designed its bulk network to handle high
volume, efficient, point-to-point moves. Operating this network
represents a core competency and franchise strength for UP.
In 2010, bulk traffic represented 32 percent of the Company’s
volume and freight revenue.
6

Premium Network
Freight Traffic - 2010 Carloads
Premium
44%
Manifest
24%
Bulk
32%
Union Pacific’s premium business includes the transportation
of finished vehicles, auto parts, intermodal containers and
truck trailers. UP is the largest automotive carrier west of the
Mississippi River. The Railroad’s extensive franchise serves
vehicle assembly plants and connects to West Coast ports
and the Port of Houston to accommodate import and export
shipments. UP’s network directly accesses all six U.S./Mexico
rail gateways, providing expedited handling of the growing
cross-border automotive traffic. Intermodal and automotive
import traffic profits from excellent service in competitive longhaul
routes connecting the West Coast ports and eastern
gateways, particularly along the Sunset Corridor from Los
Angeles to El Paso. Additionally, time-sensitive domestic
intermodal shippers benefit from the ramp-to-ramp and door-todoor
service UP provides across its network. In 2010, premium
traffic represented 44 percent of the Company’s volume and 27
percent of freight revenue.
7

Operations Review
Union Pacific continues to improve customer satisfaction and
drive efficiency in all aspects of its operations. Building upon
recent success, the network is continuously evaluated for
additional improvement opportunities. By simplifying operations
and removing variability, the Company creates a streamlined
network with greater asset utilization, leading to better customer
service and shareholder value.
Service - Volume Equation
(Monthly Data)
System velocity, as reported to the AAR, declined 4 percent
compared to a best-ever performance in 2009. Maintenance
activities and weather disruptions, combined with higher volume
levels, drove the decrease. Despite this slight reduction in
year-over-year train speed, the Company’s ongoing efforts to
enhance operations through process improvement, advanced
technology and capacity investment again translated into better
customer service. In fact, customer satisfaction improved in
2010, surpassing a record established in 2009.
Lower volumes in 2009 required the Company to idle a
significant number of assets, with approximately 26 percent of
UP’s road locomotives and 18 percent of freight car inventory
in storage at year-end. As traffic levels improved during 2010,
a portion of these assets returned to active service. At the end
of 2010, idle assets accounted for approximately 17 percent
of the road locomotive fleet and 14 percent of freight car
Service Excellence
inventory, reflecting UP’s ability to effectively leverage assets
as volumes return to the network. Union Pacific closed or
significantly reduced operations at 30 of its 114 principal rail
yards in 2009, routing traffic to larger, more efficient yards. The
Railroad re-opened seven yards during 2010 as traffic returned
to the network. The remaining 23 terminals represent available
capacity to handle future carload growth. Additionally, roughly
1,500 employees remained on furlough status at year-end
2010, significantly less than the peak of 5,300. Most of the
furloughed employees have been out of service more than two
(000)
200
190
180
170
160
150
140
2010 Average
Velocity*
(MPH)
28
26
24
22
20
years, so only a portion is expected to return to work. Those
furloughed employees who do return require less training than
newly hired individuals and enter active service more quickly.
130
120
110
18
16
Union Pacific’s Unified Plan creates operational efficiencies
by generating capacity through better utilization of resources
and reducing network variability. In 2010, carloads increased
13 percent and gross ton-miles grew 10 percent, but through
efficiencies created by the Unified Plan total first crew starts
100
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009 2010
7-Day Carloads Velocity*
* as reported to the AAR
14
increased only 5 percent. A 1 percent decline in average
8

Operations Review
employees drove a 12 percent year-over-year improvement in
gross ton-miles per employee. Freight car utilization improved
during the year, with cycle time decreasing to an all-time best of
8.6 days. In addition, train size increased year-over-year for all
train categories. Better resource utilization enables the Railroad
to efficiently transport more freight with fewer assets.
Employee Safety
(Reportable Personal Injury Incidents Per 200,000 Man-Hours)
1.73
1.59
1.45
Good
1.37
Safety
Good safety performance benefits all facets of Union Pacific’s
business, from employees, customers and communities to
velocity, productivity and service. UP’s focus on safety creates
a culture that is immersed in safe practices and behaviors,
resulting in year-over-year improvement during 2010.
2007 2008 2009 2010*
* Best-ever safety performance
Reportable employee injury incident rates fell 6 percent versus
2009 to a new record low level, as Total Safety Culture (TSC)
continues to be implemented throughout the Company. TSC
promotes safety among employees, and empowers them to
support safe behavior individually and among their peers, and
implement best practices.
The Company’s reportable equipment incident rate declined 6
percent, driven by a multi-faceted approach to identifying and
mitigating risk, including the use of advanced technology such
as lasers, ultrasound and acoustic vibration monitoring, as well
as visual inspection from dedicated track safety experts.
Economic improvement increased rail and highway traffic in
2010, contributing to a higher number of crossing accidents.
The Railroad closed 286 grade crossings during the year to
reduce exposure to grade crossing incidents. Video cameras
continue to be installed on UP’s locomotive fleet to assist in
reviewing grade crossing incidents. More than 97 percent of
UP’s through-freight trains have camera-equipped locomotives
in the lead position. In addition, the Company continues to
engage in public education efforts such as Operation Lifesaver
and UP CARES to improve safety.
Fuel Efficiency
Customer Safety
(Reportable Incidents Per Million Train Miles)
3.61
3.68
3.17
2007 2008 2009 2010*
* Best-ever safety performance
Good
2.98
Public Safety
(Crossing Accidents Per Million Train Miles)
2.72
Good
2.37 2.32
2.11
Improvements in the Railroad’s operating practices save
fuel and reduce emissions. The implementation of automatic
locomotive shutdown technology, locomotive assignment
to trains on a tons per axle basis and distributed power
2007 2008 2009 2010
9

Operations Review
locomotives (DPU), all contribute to this effort. Additionally,
UP’s ongoing employee-driven Fuel Masters Unlimited program
Intermodal Train Size
(Boxes)
rewards the fuel-saving efforts of locomotive engineers.
Good
166
The use of newer, more fuel efficient locomotives also helps
save fuel. Union Pacific operates the cleanest and most modern
fleet in North America. Since 2000, UP has spent approximately
$6 billion to purchase more than 3,400 locomotives that meet
158
154
153
EPA Tier 0, Tier 1 or Tier 2 guidelines.
Reduced fuel consumption is also expected from emerging
technologies, such as wheel/rail lubrication and aerodynamic
enhancements.
2007 2008 2009 2010
Technology
Technology enables the Company to continually focus on
improving all aspects of its operations. DPU implementation
Manifest Train Size
(Cars)
leads to fuel savings and improves the efficiency of locomotive
and crew resources by increasing train length without
jeopardizing performance. The use of DPU continues to be
Good
86
expanded across UP’s network, moving over 8 percent more
GTMs in 2010 than in 2009. DPU helped drive record train sizes
in 2010.
79
81
82
Advancements in technology also facilitate better defect
detection. Union Pacific built the first device to ultrasonically
test wheel sets for internal cracking. The Company’s ultrasonic
wheel testing facility in North Platte, NE is the first of its kind in
the world, and tests every wheel on a train as it passes through
the facility. As a result, no coal trains derailed from internal
wheel defects during the past two years.
2007 2008 2009 2010
Current wayside detection technologies measure characteristics
such as wheel and bearing temperature and wheel geometry
SPRB Coal Train Size
(Cars)
as trains pass, to help identify defects before derailments
occur. Union Pacific is in the early stages of implementing
Good
a new photographic imaging detection system to provide
132
132
comprehensive monitoring of axles, wheels, brakes, couplers,
springs and other components at a single location while trains
131
pass.
130
2007 2008 2009 2010
10

Marketing Review
An improving economy and Union Pacific’s strong value
proposition increased volume and revenue in 2010, even as
some markets struggled to show signs of a sustained recovery.
The strength of the Railroad’s unique franchise, targeted capital
investments that improved network fluidity and asset utilization,
and strong service levels came together to create value for
customers in 2010. Customer satisfaction levels reflect this
value, as UP set new records for the fourth consecutive year.
The Company’s continued focus on strengthening relationships
with customers, targeting new business opportunities on the
UP network and beyond with door-to-door service offerings and
creating a competitive advantage that earns a higher price in
the market improved overall returns.
Business Mix - 2010 Freight Revenue
Industrial
Products
16%
Energy
22%
Intermodal
20%
Agricultural
19%
Chemicals
15%
Automotive
8%
Each of the Company’s six business teams benefited from a
stronger economy in 2010, with overall volume growing 13
percent. Agricultural volume grew 6 percent, boosted by strong
export demand for U.S. wheat, corn and soybeans. Demand
for ethanol and DDGS (dried distillers grain with solubles, a
co-product of ethanol production that is used for animal feeding)
drove growth in the grain products segment. Union Pacific’s
automotive traffic climbed 31 percent versus the prior year, as
a result of stronger industry sales. Several factors contributed
to an 11 percent increase in chemicals traffic. Strong potash
exports led to improved fertilizer volume, and growth in the
crude oil market contributed to strong demand for petroleum
products. Improving industrial production and a return to more
normal inventory levels led to increased industrial chemical
shipments. Energy volume increased 2 percent year-over-year,
driven by a stronger economy and unusually warm weather
during the summer. Industrial Products shipments grew 19
percent, as stronger industrial production and increased
energy-related drilling activity spurred demand for steel, scrap
and non-metallic minerals. Hazardous waste shipments more
than doubled in 2010 – largely driven by the short-haul uranium
tailings move in Utah for the Department of Energy. While
volumes related to commercial construction-related markets,
such as cement, declined in 2010, drilling-related construction
led to an increase in rock shipments. Intermodal traffic grew
19 percent, with continued inventory restocking and higher
consumer demand driving international volumes up 20 percent.
Domestic business increased 18 percent from 2009 levels,
6.0%
Customer Satisfaction Index
80
83
2007 2008
Annual Pricing Trend
6.0%
88 89
2009 2010
4.5%
5.0%
5.5% 5.0% 5.5% 4.5%
2007 2008 2009 2010
Price Excluding RCAF Fuel Impact
Reported Core Price (Including RCAF Fuel Impact)
11

Marketing Review
driven by service improvement and new product offerings that
continued to attract highway conversions. The Streamline
subsidiary’s door-to-door product jumped more than 60 percent,
with nearly half of the growth coming from converted highway
business.
Volume growth, core price improvement of 5 percent and higher
fuel surcharge revenue combined to drive a 20 percent increase
in freight revenue to $16.1 billion. UP’s competitive service
offerings and strong value proposition enable us to enter new
markets and attract more business at higher returns, supporting
future revenue growth. From 2007 to 2010, UP’s core price
improvements ranged between 4.5 and 6 percent. Legacy
contracts comprised 12 percent of the Company’s revenue
portfolio at the beginning of 2011, and present significant
opportunities for further yield improvement as UP competes for
and re-prices this business.
2010 Revenue Composition
Domestic
69%
International
31%
Export -
Other
29%
Export -
Mexico
16%
Import -
Mexico
14%
Import -
Other
41%
Annual Summary by Quarter
2010 2009 2008
1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Freight Revenue (millions of dollars)
3,755 3,956 4,187 4,171 16,069 3,240 3,121 3,471 3,541 13,373 4,059 4,349 4,630 4,080 17,118
Revenue Ton-Miles (millions)
126,803 126,314 134,509 132,774 520,400 118,420 113,234 124,007 123,527 479,188 140,707 140,939 145,787 135,198 562,631
Revenue Carloads (thousands)
2,082 2,180 2,316 2,237 8,815 1,847 1,852 2,035 2,052 7,786 2,335 2,371 2,398 2,157 9,261
Average Revenue Per Car (dollars)
1,804 1,815 1,807 1,865 1,823 1,755 1,685 1,706 1,726 1,718 1,738 1,835 1,931 1,891 1,848
12

Capital Investments
Capital investments in Union Pacific’s network improve safety,
service and network efficiency, while also expanding capacity to
meet the transportation needs of current and future customers.
Investments include the replacement, improvement and
expansion of track and facilities, as well as the acquisition of
new locomotives, freight cars and intermodal containers.
The Company’s capital can be broadly classified into three
categories: replacement, growth and productivity, and positive
train control (PTC). Replacement capital improves safety and
efficiency by replacing current infrastructure, such as track,
facilities and equipment. Growth and productivity capital
targets the future needs of the Company and its customers,
supporting both volume expansion and efficiency. Equipment
acquisitions can be categorized as either replacement or growth
and productivity, as new equipment can add capacity to our
network or replace older, less efficient assets. Capital for PTC
addresses the legislative mandate contained within the Rail
Safety Improvement Act of 2008 that requires railroad carriers
to implement PTC by the end of 2015.
2010 Summary: $2.5 billion
Union Pacific spent $1.8 billion on replacement capital.
Approximately $1.6 billion went to the engineering replacement
program, and included installing more than 4.3 million ties
and 795 track miles of rail to improve track infrastructure
and reduce slow orders, providing safe, fluid operations and
greater network efficiency. The remaining replacement capital
consisted of locomotive fleet overhauls, upgrades and fuel
conservation projects, as well as improvements to freight cars
and information technology assets.
Spending on growth and productivity initiatives totaled more
than $600 million. The Company completed construction of the
Joliet Intermodal Terminal, which officially opened in August
2010. The new terminal increases the Railroad’s international
and domestic container capacity while improving rail traffic
efficiencies throughout the Chicago region. UP acquired new
equipment to meet growing demand for rail transportation,
including 775 covered hoppers, 9,200 intermodal containers
and nearly 3,000 chassis. Spending during the year also
included work on the Sunset Corridor and yard and bridge
capacity expansion projects to improve network efficiency.
2011 Outlook: Approximately $3.2 billion
Replacement capital is expected to total more than $1.8
billion. The engineering replacement program is forecast to
be approximately $1.7 billion, and includes the installation of
about 4.3 million ties and roughly 1,000 track miles of rail. The
remaining replacement capital is for locomotive fleet overhauls,
upgrades and servicing facilities, as well as other equipment
needs.
Union Pacific anticipates spending around $1.1 billion for
growth and productivity initiatives. Projects such as doubletracking
the Sunset Corridor and the Blair Subdivision will
improve network capacity to efficiently handle volume growth
along the Railroad’s two primary east/west routes.
UP plans to acquire 100 new road locomotives, which will
improve fleet reliability and fuel efficiency, reduce emissions
and expand distributed power capability. In addition, they
provide flexibility in advance of developing technology to meet
Tier 4 emissions standards set by the EPA (effective 2015).
Planned acquisitions of new equipment include 650 freight
cars, 4,800 containers and 4,800 chassis, helping provide the
capacity to efficiently handle current and future demand growth.
Spending on PTC is expected to be about $250 million in
2011. The Company currently estimates that PTC will cost
approximately $1.4 billion to implement by the end of 2015. This
includes costs for installing the new system along the Railroad’s
tracks, upgrading locomotives to work with the new system and
adding digital data communication equipment so all parts of the
system can communicate with each other.
Positive Train
Control
$84
2010 Capital Investments
(In Millions)
Engineering
Replacement
$1,625
Union Pacific spent about $85 million on PTC development
in 2010. Spending on this developing collision avoidance
technology focused on signal work and related communication
infrastructure.
Capacity/
Commercial
Facilities
$349
Technology
& Other
$94
Locomotives
& Equipment
$330
Replacement Growth and Productivity Positive Train Control
13

Capacity and Commercial Projects
2010 Capacity/Commercial Projects
3.1
Capital Spending
($ In Billions)
3.2
8%
2.5
2.5
1% 3%
Existing and Proposed Corridor/Terminal Projects
2008 2009 2010 2011E
Base
Positive Train Control
* Includes cash capital, leases and other non-cash capital
14

Track and Terminal Density
Lane density based on carloadings
Line thickness depicts traffic density
2010 Terminal Volumes
Major Classification Yards Average Daily Volume/Cars
North Platte, Nebraska 2,100
North Little Rock, Arkansas 1,500
Englewood (Houston), Texas 1,400
Proviso (Chicago), Illinois 1,300
Fort Worth, Texas 1,200
Livonia, Louisiana 1,200
Roseville, California 1,100
West Colton, California 1,100
Pine Bluff, Arkansas 1,100
Neff (Kansas City), Missouri 900
Major Intermodal Terminals
Annual Lifts
ICTF (Los Angeles), California 450,000
East Los Angeles, California 429,000
Global II (Chicago), Illinois 342,000
Global I (Chicago), Illinois 317,000
Marion (Memphis), Tennessee 292,000
Dallas, Texas 280,000
Lathrop (Stockton), California 247,000
Yard Center (Chicago), Illinois 241,000
City of Industry (Los Angeles), California 233,000
LATC (Los Angeles), California 224,000
Traffic Classification - 2010 Carloads
UP
Destination
15%
Forwarded
20%
Bridged 3%
Local
62%
Local = UP Origin + UP Destination
Forwarded = UP Origin + Other Destination
UP Destination = Other Origin + UP Destination
Bridged = Other Origin + UP Intermediate + Other Destination
15

Agricultural
Transportation of whole grains, commodities produced from
these grains, and food and beverage products generated 19
percent of the Railroad’s 2010 freight revenue. Union Pacific
accesses most major grain markets, linking the Midwest and
western producing areas to export terminals in the PNW and
Gulf Coast ports, as well as Mexico. Unit shuttle trains, which
transport a single commodity efficiently between producers
and export terminals or domestic markets, represent nearly 35
percent of Agricultural shipments. UP also serves significant
domestic markets, including grain processors, animal feeders
and ethanol producers in the Midwest, West, South and Rocky
Mountain states.
Food &
Refrigerated
23%
Grain
Products
33%
Whole
Grains
44%
2010 Carloads
Mexico - 13%
International - 17%
Domestic - 70%
Union Pacific’s unique franchise, coupled with ownership of
the largest refrigerated boxcar fleet in the industry, creates a
competitive advantage in the shipment of perishables. Union
Pacific offers two premium services for these products. Produce
Railexpress carries fresh produce from the West Coast to New
York. Express Lane moves dairy products, canned goods, wine,
frozen foods and some fresh produce from the West Coast to
destinations in the East and Southeast. These two services
directly access California and Washington, which produce
over 60 percent of the nation’s fresh fruits and vegetables.
The Railroad also transports frozen meat and poultry from the
Midwest and Mid-South to the West Coast for export.
UP considers Canada and Mexico important extensions of
its domestic markets through alliances with other railroads.
Roughly two-thirds of Agricultural shipments to and from Mexico
consist of southbound commodities such as corn, soybeans,
wheat and soybean meal. Shipments of beer account for most
of the northbound traffic from Mexico.
Agricultural Line Density Map
Whole Grains 44%
Domestic Feed Grains 21%
Wheat & Food Grains 12%
Export Feed Grains 11%
Grain Products 33%
Meals & Oils 13%
Feed Ingredients 10%
Corn Refining & Ethanol 10%
Food & Refrigerated 23%
Food & Beverage 12%
Refrigerated Products 5%
Flour & Rice* 6%
*Flour & Rice moved from Grain Products to Food & Refrigerated
Agricultural revenue grew 13 percent in 2010, driven by a
6 percent rise in carloads, higher fuel surcharges and price
improvements. Corn and feed grain shipments increased
from 2009, reflecting more export volume to the PNW and
heightened demand in Mexico, as well as higher volumes
into ethanol plants in California and Idaho. In 2009, some
forward ethanol plants (production facilities located closer to
consumers) temporarily ceased operations due to lower ethanol
margins, contributing to a favorable year-over-year comparison.
In addition, strong export demand via the Gulf ports drove up
shipments of wheat and food grains.
The U.S. government’s ethanol production mandate within the
Energy Independence and Security Act of 2007 increased from
10.5 to 12 billion gallons per year in 2010. As a result, ethanol
traffic grew 15 percent and revenue rose 25 percent year-overyear.
The shipment of perishables is a highly truck-competitive
market, as customers require fast, reliable transit times.
Improvement of the Railroad’s network performance creates
opportunities to capture market share from trucks. In 2010,
Union Pacific’s Produce Railexpress moved 20 percent more
refrigerated boxcars, carrying produce from the West Coast to
the East Coast.
Lane density based on carloadings. Line thickness depicts traffic density.
16

Agricultural
More than half of UP’s agricultural business moves on the
Railroad’s manifest network. This network allows shippers of
all sizes to benefit from access to efficient, value-added rail
service, and enables the Railroad to effectively compete for
food and grain products business.
Paul Hammes,
VP & GM Agricultural
2011 Market Drivers
Strong export demand for grain and soybeans is expected to
continue through the first half of 2011. Wheat exports should
remain strong, as U.S. exports continue to benefit from grain
production problems in Eastern Europe and Russia. Strong
protein demand in China occurred throughout the first quarter
of 2011, which translated into continued growth in soybean
exports. Some weakness in corn exports is expected, however,
as a result of lower overall corn yield. While the potential exists
for a strong second half, actual results will depend on crop
growing conditions in the United States and throughout the
world.
Inclement weather late in the 2010 growing season negatively
impacted crop yields, primarily corn. The USDA projects a 4
percent decline in corn and soybean production compared
to record production in the prior crop year, which could
affect carload volumes. While animal feeding is expected to
grow slightly during the current crop year, it is expected to
remain below the five year average. Soybean crush volume,
the leading indicator for soybean meal and oil production,
is forecast to decline from the prior crop year due to lower
soybean production and increased soybean exports.
Ethanol should deliver modest volume growth in 2011. Current
corn-based production can meet the government’s mandate,
which increases from 12 to 12.6 billion gallons per year in 2011.
Texas and California are viewed as the largest growth areas for
this product within Union Pacific’s network, and new terminals
that opened in these states during 2010 are expected to support
ongoing efficient distribution. Corn shipments to forward ethanol
plants are also forecast to grow in 2011.
How is your business group positioned to generate
“economy plus” volume growth between 2011 and 2015?
Growth in many Agricultural markets depends on grain production
in the United States and throughout the world. As demand
increases, grain production needs to grow as well. The majority of
crop production growth is expected to come from three sources:
shifting crop acres, acreage growth and higher crop yields. We are
currently seeing a modest acreage shift from wheat to corn, which
has a higher yield per acre. Also, some acreage may be taken
out of the USDA’s Conservation Reserve Program over the next
five years, adding to the total acreage available for production.
Corn yield is expected to exceed 170 bushels per acre by 2015,
representing an increase of more than 10 percent above current
levels.
While domestic demand should remain fairly constant, export
markets present significant opportunities for Union Pacific.
Population growth in Asian countries coupled with standard of
living improvements are expected to drive strong demand for
grain, soybeans, soybean meal, soybean oil and DDGS.
While these opportunities will vary with world production, we
expect to capitalize on this growth. Union Pacific’s network in
Iowa, Nebraska and Minnesota is closely aligned with production
areas that should have corn yields higher than the national
average. Also, to enhance the efficiency of our grain service,
Union Pacific acquired (via purchase and operating lease) 1,100
new high-capacity large covered hoppers in 2010. Another 500
grain cars are part of the Company’s 2011 capital budget of $3.2
billion.
We expect volume growth in the food and refrigerated markets
to be driven by increased population and further penetration in
the historically truck-served perishables market. Our premium
perishable services, Produce Railexpress and Express Lane,
provided more than 95 percent on-time or early service reliability
over the past year. Additionally, we offer door-to-door service in
cooperation with Union Pacific Distribution Services, allowing
greater reach into the refrigerated truck markets. We expect
demand to grow and are well-positioned to handle it with the
largest, most modern refrigerated boxcar fleet in the United
States.
Both of UP’s premium perishable service offerings are expected
to see volume growth in 2011, driven by continued improvement
in transit time performance.
17

Export Grain Flows
Annual Summary by Quarter - Agricultural
2010 2009 2008
1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Freight Revenue (millions of dollars)
730 698 750 840 3,018 661 618 649 738 2,666 756 778 848 792 3,174
Revenue Ton-Miles (millions)
22,052 20,147 22,062 23,976 88,237 20,067 18,854 19,563 22,723 81,207 22,485 22,111 22,431 21,560 88,588
Revenue Carloads (thousands)
228 213 229 248 918 212 203 215 235 865 240 236 243 228 947
Average Revenue Per Car (dollars)
3,202 3,277 3,271 3,386 3,286 3,116 3,045 3,026 3,129 3,080 3,151 3,301 3,486 3,472 3,352
18

Automotive
Union Pacific is the largest automotive carrier west of the
2010 Carloads
Mississippi River and operates or accesses 43 distribution
centers. The Railroad’s extensive franchise serves vehicle
assembly plants and connects to West Coast ports and the
Port of Houston to accommodate both import and export
shipments. In addition to transporting finished vehicles, UP
provides expedited handling of automotive parts in both boxcars
and intermodal containers destined for Mexico, the U.S. and
Canada. The Automotive group generated 8 percent of Union
Pacific’s 2010 freight revenue. Finished vehicles accounted for
77 percent of this revenue, with 23 percent coming from the
movement of automotive parts and materials.
Automotive
Materials
41%
Assembled
Autos
59%
International - 12%
Domestic - 36%
Mexico - 52%
An improving economy led to stronger demand in 2010,
driving increased vehicle sales and production. New light
vehicle sales in the U.S. increased to 11.5 million vehicles in
2010, up 11 percent from relatively weak 2009 levels. North
American light vehicle production improved 39 percent for the
year, to 11.9 million units. Volume growth, core pricing gains
and fuel surcharges drove a 49 percent improvement in Union
Pacific’s automotive freight revenue. Revenue from finished
vehicle shipments climbed 54 percent, as carloads rose nearly
37 percent. Revenue from auto parts and materials grew 33
percent, with volumes up 24 percent.
In each of the past four years, Union Pacific’s automotive traffic
represented more than 75 percent of the total western U.S.
automotive carload business. Going forward, finished vehicle
Automotive Line Density Map
shipments likely will reflect changing dynamics among industry
manufacturers as they work to keep or gain market share.
Market share for the Detroit Three remained constant from
2009, at approximately 45 percent of new light vehicle sales
in the U.S. Other manufacturers have domestic manufacturing
capabilities and import a significant number of vehicles via
West Coast and Gulf ports. Union Pacific faces competition
from trucks for the finished vehicles imported through the West
Coast ports and destined to U.S. and Canadian automotive
dealerships.
In 2010, approximately 52 percent of UP’s automotive
shipments moved to or from Mexico, including finished vehicles
as well as parts and materials moving in intermodal or boxcar/
flatcar service. Consistent with the overall automotive industry
improvement, Mexico parts and materials shipments increased
43 percent and finished vehicle moves grew 41 percent.
Supported by a more than 20 percent service improvement over
the past five years, UP moves 100 percent of Mexico intermodal
automotive production parts.
2011 Market Drivers
Among Union Pacific’s six business teams, Automotive will
likely experience the most significant impact from the disaster
in Japan. Although the extent to which this disaster will affect
the automotive industry and its supply chain remains uncertain,
it is anticipated that most of the impact should be limited to the
second quarter. However, further improvement in economic
Lane density based on carloadings. Line thickness depicts traffic density.
19

Automotive
conditions should generate a 12 percent increase in U.S. light
vehicle sales and a 9 percent increase in North American light
vehicle production for 2011. Traffic to and from Mexico is also
expected to improve, driven by the global economic recovery
as well as additional production capacity in Mexico. Union
Pacific serves a broad customer base that includes import and
transplant manufacturers. This diverse business mix helps
the Company mitigate the effects of production and consumer
preference changes in the automotive industry.
Union Pacific expects to begin production of the AutoFlex© rail
car in the middle of 2011. The AutoFlex©, designed by Union
Pacific, is a convertible multi-level rail car that can be adjusted
to accommodate bi-level (large vehicles) or tri-level (small
vehicles) transport with the same rack structure. The AutoFlex©
improves safety, service and security, and demonstrates UP’s
leadership in and commitment to the automotive industry.
Union Pacific’s ability to address market changes is critical
to maintaining superior customer service. UP is preparing to
handle electric vehicle shipments by installing charging stations
at most auto ramps in 2011. The AutoFlex© car and innovative
facility planning will help manage the potential impact of the
Corporate Average Fuel Economy standards on the automotive
industry. Implementation of these standards is scheduled for
2016, and could potentially create production shifts between
cars and trucks as well as expand the electric and micro vehicle
markets.
Growth opportunities exist with the Railroad subsidiaries: Insight
Network Logistics (INL), ShipCarsNow (SCN) and Union Pacific
Distribution Services (UPDS). These companies offer supply
chain logistic services for major automotive manufacturers.
SCN is making inroads into the used car remarketing area by
providing management and coordination services for vehicle
auction companies and rental car firms both domestically and
internationally. Marketed jointly with UP’s rail services, these
subsidiaries can assist manufacturers in meeting customers’
changing inventory needs and provide continued growth
opportunities. Extending UP’s reach beyond the Railroad’s
physical boundaries to customers that are not rail-served
promotes vertical integration and new market development.
Linda Brandl,
VP & GM Automotive
How is your business group positioned to generate
“economy plus” volume growth between 2011 and 2015?
The Automotive team is taking an increasingly proactive approach
to anticipating customer needs by developing and delivering
innovative products. Extending our vehicle and parts networks
creates opportunities for vertical integration in a customer’s supply
chains. Examples include vehicle visibility tools offered through
partnerships with our subsidiaries; Shipment Vision with UPDS
and VinVision with INL. Opportunities exist to capitalize on UP’s
co-load capability by providing online quotes for both domestic and
international automotive shipping. In addition, co-load capability
can be leveraged through collaboration with SCN and vehicle
manufacturers to expand our reach into the used car market. UP
is also preparing to handle electric vehicles by installing charging
stations at automotive facilities across our network in 2011.
Making the appropriate capital investments in facilities, track
infrastructure and the multi-level fleet is key to efficiently handling
anticipated volume growth. In addition, we are focusing on further
development of UP’s capacity at West Coast port locations to
facilitate growth from our existing customer base and support new
vehicle production from China and India.
Global production trends have the potential to alter transportation
flows, due primarily to increased production in China, Mexico
and Europe. The Company has an established sales office in
Shanghai, China to further cultivate relationships with Chinese
automotive original equipment manufacturers and suppliers in
anticipation of increasing import parts and vehicle volume. The
Railroad is also focusing on Europe to support those potential
international opportunities. UP’s focus on developing early ties
with the industry beyond the U.S. should help us deliver better
service to our customers.
In addition, strategic infrastructure improvements across the
network enhance current operations and ensure the Company
efficiently handles profitable traffic as volumes continue to return.
Improvements that support the automotive business in California,
Texas and the Chicago area create operational efficiencies
and position UP for future growth opportunities. For example,
the acquisition of property at Fremont, CA in 2010 provides the
Railroad with a potential automotive ramp location to support
future growth. This location could also serve as a processing
center for import volumes in the Northern California market.
20

Automotive Facilities and Assembly Centers
Annual Summary by Quarter - Automotive
2010 2009 2008
1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Freight Revenue (millions of dollars)
305 334 309 323 1,271 162 163 227 302 854 363 352 324 305 1,344
Revenue Ton-Miles (millions)
3,186 3,271 2,984 3,101 12,542 1,952 1,995 2,619 3,174 9,740 3,890 3,646 3,278 3,169 13,983
Revenue Carloads (thousands)
151 159 146 155 611 97 93 124 151 465 188 176 153 150 667
Average Revenue Per Car (dollars)
2,022 2,094 2,114 2,100 2,082 1,675 1,755 1,827 2,004 1,838 1,930 2,005 2,114 2,040 2,017
21

Chemicals
Transporting chemicals generated 15 percent of Union Pacific’s
freight revenue in 2010. The Railroad’s unique franchise
serves the chemical producing areas along the Gulf Coast,
where roughly two-thirds of the Company’s chemical business
originates, terminates or travels. UP’s chemical franchise also
accesses chemical producers in the Rocky Mountains and on
the West Coast. The Company’s chemical shipments can be
classified into three broad categories: Petrochemicals, Fertilizer
and Soda Ash.
Petrochemicals constitutes 67 percent of UP’s chemical
business and includes industrial chemicals, plastics, petroleum
products and liquid petroleum gases. These products move
primarily to and from the Gulf Coast region. Barges, pipelines,
and to a lesser extent trucks, provide transportation alternatives
for some of these commodities.
The industrial chemicals market consists of several dozen
segments of basic, intermediate and specialty chemicals
produced by, and shipped to, both large and small customers.
Strong demand from industrial manufacturers drives this
market. Plastics shipments support the automotive, housing,
and durable and disposable consumer goods markets. UP is an
important link in the plastics supply chain through its ownership
and operation of storage-in-transit (SIT) facilities. Plastics
customers utilize railroad SIT yards for intermediate storage of
plastic resins, and UP’s SIT capacity is more than double that of
any other railroad.
Strengthening industrial production, availability of low cost
natural gas feedstock and a return to more normal inventory
Chemicals Line Density Map
Petroleum
& Other
17%
Soda
Ash
13%
Fertilizer
20%
Plastics
25%
Industrial
Chemicals
25%
2010 Carloads
Mexico - 5%
International - 23%
Domestic - 72%
levels helped spur an 8 percent growth in UP’s petrochemical
business in 2010. New shipments of crude oil destined to
blending facilities at St James, LA also contributed to the
increase. Volume growth combined with higher average
revenue per car to push revenue up 16 percent year-over-year.
Average revenue per car increased 7 percent, driven by product
mix changes, price improvements and higher fuel surcharges.
Fertilizer movements originate in the Gulf Coast region, the
western part of the U.S. and Canada for delivery to major
agricultural users in the Midwest, western U.S. and abroad.
The combination of fertilizer and other related materials
(phosphate rock and sulfur) represented 20 percent of the
Railroad’s chemical business in 2010. Reduced inventories,
strong global demand related to delayed 2009 purchases,
and higher commodity prices drove a 20 percent increase in
shipments. Average revenue per car declined 3 percent as price
improvements and increased fuel surcharges were mitigated by
product mix changes, notably growth in unit train shipments of
potash for export.
Soda ash accounted for 13 percent of UP’s chemical business
in 2010. This product originates in southwestern Wyoming
and California, destined for chemical and glass producing
markets in North America and abroad. UP directly serves the
world’s largest natural soda ash reserve and production region
at Green River, Wyoming. During 2010, soda ash revenue
increased 13 percent, driven by a 12 percent increase in
volume and higher fuel surcharges. Volume growth resulted
from stronger exports related to the price competitiveness
of U.S. producers and increased global demand. Domestic
demand remained relatively flat year-over-year.
Lane density based on carloadings. Line thickness depicts traffic density.
22

Chemicals
2011 Market Drivers
Global demand for chemicals is expected to be stronger in 2011
than the prior two years, as a result of an improving worldwide
economy and robust growth projections for developing countries
such as China, India and Brazil. The availability of low cost
natural gas feedstock and efficiencies gained from industry
restructuring are strengthening the competitive position of North
American chemical production. Strength in segments of the
U.S. economy such as automotive and consumer products is
expected to have a significant impact on the overall demand for
soda ash, plastics and industrial chemical products.
Shipments of crude oil from the Bakken formation in North
Dakota to terminal facilities in St James, LA move primarily
in unit trains. This business is expected to total over 16,000
carloads in 2011, more than triple the 2010 level. Increasing
crude oil prices coupled with an efficient rail-based supply chain
support ongoing viability of this business. Additionally, market
development of crude oil reserves in both the Niobrara region of
Wyoming and Colorado, and the Eagle Ford shale formation in
South Texas is expected to contribute to the growth.
Diane Duren,
VP & GM Chemicals
How is your business group positioned to generate
“economy plus” volume growth between 2011 and 2015?
The strength of Union Pacific’s chemical franchise is created
by our ability to efficiently serve a diverse product base across
our network. We are well-positioned to capitalize on market
opportunities brought about by global economic expansion and
a changing business environment. Whether serving domestic
or export markets, our strategy for achieving business growth
remains the same – build strong partnerships with customers by
providing consistent, reliable service, and support their long-term
global competitiveness through supply chain efficiencies. We
expect U.S. chemical production to remain competitive in the
global marketplace due to an abundant supply of low cost natural
gas and other raw materials, such as soda ash and potash.
Investments in Union Pacific’s chemical franchise and a continued
focus on service excellence and innovation position the Company
to capitalize on existing business opportunities and address the
needs of emerging markets.
Fertilizer demand is expected to remain strong in 2011, due to
increasing prices for commodities and tight supply.
Annual Summary by Quarter - Chemicals
2010 2009 2008
1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Freight Revenue (millions of dollars)
587 592 629 617 2,425 513 499 551 539 2,102 603 654 659 578 2,494
Revenue Ton-Miles (millions)
13,333 13,325 13,956 13,619 54,233 11,999 11,481 12,544 12,031 48,055 13,939 14,559 13,668 12,641 54,807
Revenue Carloads (thousands)
203 209 221 211 844 180 188 202 191 761 225 241 224 195 885
Average Revenue Per Car (dollars)
2,893 2,826 2,858 2,923 2,874 2,843 2,659 2,730 2,815 2,761 2,676 2,714 2,951 2,957 2,818
23

Energy
For the fourth consecutive year, coal and petroleum coke
transportation accounted for the largest share of Union Pacific’s
freight revenue, representing 22 percent in 2010. The Railroad’s
network supports the transportation of coal and petroleum coke
to utilities and industrial facilities throughout the U.S. Through
interchange gateways and ports, UP’s reach extends to eastern
U.S. utilities, Mexico, Europe and Asia. Water terminals allow
the Railroad to move western U.S. coal east via the Mississippi
and Ohio Rivers, as well as the Great Lakes. Export coal moves
through West Coast ports to Asia and through Mississippi River
terminals to Europe.
Colorado/
Utah
13%
Other
12%
Southern
Powder River
Basin
75%
2010 Carloads
Industrial - 5%
West - 8%
East - 18%
North - 29%
South - 40%
Coal traffic originating in the Southern Powder River Basin
(SPRB) area of Wyoming is the largest segment of UP’s energy
business, comprising 75 percent in 2010. This reliable, lowcost,
low-sulfur coal is attractive to utilities in the competitive
electricity generation market. Coal produced in the Uinta Basin
region of Colorado and Utah is the second largest source of
UP coal volume, representing 13 percent in 2010. This mostly
sub-surface coal is relatively high in BTUs (British Thermal
Unit) and is low in sulfur content. The remaining energy traffic
consists of petroleum coke from oil refineries, coal shipments
from southern Wyoming’s Hanna Basin and mines in southern
Illinois, and coal forwarded to UP from other carriers.
A recovering economy and the fourth hottest summer on record
helped drive total coal volumes up 2 percent in 2010. Stronger
coal demand and more efficient deliveries reduced utilities’
average coal inventories by 14 days (19 percent) to near normal
Energy Line Density Map
levels, and drove SPRB carloads up 60,000 units. Volume also
increased as a result of a Midwestern utility’s decision to use
Union Pacific as the single line carrier, whereas UP previously
did not originate the move.
SPRB train size reached a new record in 2010, with tons
per train increasing to 15,736. A record 132.5 cars per train,
combined with an all-time high 118.8 tons per car, drove the
increase. Operational improvements at North Platte, including
the in-train wheel repair process and continued emphasis
on maintaining inbound train length, enabled the Railroad to
achieve these results.
Colorado and Utah shipments decreased 8 percent year-overyear.
Delays associated with equipment relocations impacted
mine production. Despite the improving economy, the Uinta
Basin coal struggled to compete with other low cost fuel options
(eastern coal and natural gas). Lower industrial and utility
demand also negatively affected volumes. Train size declined
slightly to 11,046 tons per train, as a dip in train length to 98.7
cars per train offset record tons per car of 112.0.
Petroleum coke is a residual of the oil refining process. It is a
source of high sulfur fuel for electricity generation and is used
by industrial customers in the production of aluminum, steel
and cement. This traffic originates mainly on the Gulf Coast,
as well as in Oklahoma, Kansas, Wyoming and California. The
primary destination is Texas; however, shipments also move to
Lane density based on carloadings. Line thickness depicts traffic density.
24

Energy
the Midwest, California and Louisiana. In 2010, the recovering
economy created modest demand growth, driving petroleum
coke shipments up 4 percent year-over-year.
The remaining energy traffic declined 1 percent in 2010 as a
result of several factors. A Midwestern utility’s SPRB traffic
previously received from another carrier was converted to a
UP-originating move. In addition, Hanna Basin traffic declined
10 percent as Colorado and Utah coal availability improved,
reducing the need for substitute coal from Hanna mines. Growth
in coal loadings from Southern Illinois as well as increased
volume of Central Appalachian coal received at Chicago
partially offset the declines.
2011 Market Drivers
Several factors are expected to contribute to growth of
SPRB volumes, including nine million tons of new business
to Wisconsin customers, a new unit at a Texas utility that
began receiving coal in May of 2010 and a new utility in Texas
scheduled to open mid-year 2011. Colorado and Utah carloads
should also increase, with one Colorado mine anticipating the
completion of its equipment relocation to new reserves and
resumption of full production in the second quarter. Additional
traffic out of a Wyoming refinery should drive higher petroleum
coke volume, and more eastern coal received at Chicago
for delivery to a Wisconsin utility should boost the remaining
energy traffic.
SPRB Coal Tonnage
(In Millions)
204.6
Doug Glass,
VP & GM Energy
How is your business group positioned to generate
“economy plus” volume growth between 2011 and 2015?
The coal industry likely will face regulatory and associated cost
challenges in the years ahead. The EPA issued its draft rules in
March of this year, but there is still much uncertainty surrounding
the new emissions regulations. Potential costs of adhering
to such regulations can impact a utility’s decisions regarding
the replacement of older coal-fired units. Whereas older units
were typically replaced with new, more efficient coal-fired units,
alternative fuel sources, such as natural gas, could receive
additional consideration due to more stringent regulations.
While the challenges are real, Union Pacific continues to
improve service, provide value to customers and develop new
opportunities for coal transportation. We are working with utilities
that have new facilities under construction and are assisting
in the development of new, cutting-edge, low carbon emission
power plants. In addition, we are actively engaged with western
U.S. mine operators to extend the reach of western bituminous
coal to locations in Mexico, Asia, Europe and South America.
Expansion of existing West Coast, Mississippi River and Gulf port
operations is critical to ensure available capacity for future growth
opportunities. UP shipped 1.5 million tons of export coal in 2010,
and we believe that several million tons is a real possibility over
the next five years.
New facilities should come online between 2011 and 2015 in
Arkansas, Missouri, Texas and Wisconsin, generating more than
20 million incremental tons. A utility plans to break ground on a
new coal-fired plant in western Texas during the fourth quarter
of 2011, with completion scheduled for 2014. The plant will
utilize carbon capture and sequestration technology, allowing
it to capture more than 90 percent of CO2 emissions for use in
secondary oil recovery or sequestration in safe, underground
caverns.
As these developments unfold, we will continue to focus on
meeting and exceeding customer expectations through improving
service, ongoing productivity initiatives and expanded use of
technology.
194.0
194.8
179.0
176.9
184.5
2005 2006 2007 2008
2009 2010
25

New Coal-Fired Units
Annual Summary by Quarter - Energy
2010 2009 2008
1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Freight Revenue (millions of dollars)
844 836 922 887 3,489 807 715 831 765 3,118 857 919 1,051 983 3,810
Revenue Ton-Miles (millions)
55,578 53,437 59,331 57,237 225,583 56,003 50,740 57,391 54,093 218,227 63,334 61,748 67,887 65,393 258,362
Revenue Carloads (thousands)
516 486 535 519 2,056 521 470 531 499 2,021 582 561 615 590 2,348
Average Revenue Per Car (dollars)
1,636 1,722 1,721 1,709 1,697 1,550 1,520 1,564 1,536 1,543 1,473 1,639 1,709 1,664 1,622
26

Industrial Products
Union Pacific’s extensive network facilitates the movement
of numerous commodities between thousands of origin and
destination points throughout North America. The Industrial
Products group consists of several product categories, including
construction products, metals, minerals, paper, consumer
goods, lumber and other miscellaneous products. In 2010,
this group generated 16 percent of Union Pacific’s total freight
revenue.
Commercial and highway construction drives shipments of
steel and construction products, consisting of rock, cement
and roofing materials. Industrial manufacturing plants receive
nonferrous metals and industrial minerals. Paper and consumer
goods, including furniture and appliances, move to major
metropolitan areas for consumers. Lumber shipments originate
primarily in the PNW and Canada and move throughout
the U.S. for use in new home construction and repair and
remodeling. In addition, the Railroad provides safe and efficient
transportation for government entities and waste companies.
Macro-economic factors such as industrial production and
housing starts drive demand for the Industrial Products group.
In 2010, U.S. industrial production grew 5.3 percent and
housing starts rose 7 percent, contributing to a 19 percent
increase in carloads. Core pricing improvement and higher fuel
surcharges drove average revenue per car up 3 percent versus
2009. Total freight revenue climbed 23 percent in 2010 due to
higher volume and average revenue per car.
Industrial Products Line Density Map
Lumber
8%
Paper
10%
Other
15%
Construction
32%
Minerals/
Consumer
16%
2010 Carloads
Metals
19%
Mexico - 8%
International - 14%
Domestic - 78%
Home buyer tax incentives offered during the first half of
2010 drove the increase in housing starts. As a result, lumber
carloads grew 6 percent and revenue rose 12 percent yearover-year.
Growth in oil and natural gas drilling activity contributed to
volume and revenue increases across several Industrial
Products categories. Expanded road construction to access
drilling sites drove greater demand for stone, sand and gravel,
which more than offset weakness in commercial construction
activity. As a result, volume increased 15 percent and revenue
rose 15 percent. Increased demand for drilling pipe, as well as
overall improving economic conditions, resulted in steel and
scrap steel carloads growing 46 percent and revenue jumping
56 percent. In addition, the use of frac sand, bentonite and
barites in the drilling process gave a boost to minerals, pushing
volume up 38 percent and revenue up 49 percent.
The ongoing federal government remediation program involving
removal of uranium mill tailings from a site near Moab, Utah
drove a 132 percent increase in hazardous waste shipments
for 2010. However, this short-haul business earns a very
low average revenue per car, and revenue for this category
increased only 21 percent over 2009.
Lane density based on carloadings. Line thickness depicts traffic density.
27

Industrial Products
2011 Market Drivers
As economic conditions improve, demand for products such
as lumber, rock, cement, steel and minerals should increase.
Current projections call for housing starts to increase 5 percent
and industrial production to grow 5.5 percent year-over-year.
Domestic drilling activity, which drives demand for frac sand and
contributes to growth in steel shipments and rock, also should
improve. An indicator of greater demand is the 20 percent yearover-year
increase in the number of land-based drilling rigs in
the U.S. at the end of 2010.
With the expiration of government funding in 2011 associated
with the movement of uranium mill tailings, volumes for this
business will likely decline versus 2010.
Eric Butler,
VP & GM Industrial Products
How is your business group positioned to generate
“economy plus” volume growth between 2011 and 2015?
The economic recession significantly reduced Industrial Products
volumes. Compared to the peak year, lumber and panel carloads
in 2010 were down approximately 60 percent and construction
products volumes were off 25 percent. While these depressed
volume levels are evidence of a challenging environment, they
also indicate significant opportunities.
Annual housing starts in 2010 of approximately 0.6 million are
much lower than historically sustainable levels of around 1.5 - 1.7
million. Current estimates show housing starts growing at a 24
percent compound annual growth rate over the next 5 years. In
addition, considerable upside exists for the stone, cement, rebar
and structural steel markets as we return to normal levels of
activity for highway, commercial and residential construction.
Much of our recent growth is due to domestic oil and natural gas
drilling activity, which generates growth in frac sand, barites,
pipe products and stone. We expect this trend to continue with
the development of new shale operations, including Eagle Ford
and Niobrara. The increasing number of drilling rigs provides
substantial growth opportunities, especially when considering that
a well can require more than 100 carloads of frac sand.
Finally, our business development efforts should continue to bring
new business to the Railroad. Through improved global supply
chain solutions, flexibility and agility in emerging markets, and new
relationships, new markets and new services, we expect to drive
growth across all commodity areas.
Annual Summary by Quarter - Industrial Products
2010 2009 2008
1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Freight Revenue (millions of dollars)
598 692 697 652 2,639 546 531 557 513 2,147 773 877 906 717 3,273
Revenue Ton-Miles (millions)
13,863 15,957 15,687 14,840 60,347 13,123 12,842 13,479 12,429 51,873 17,507 19,138 18,648 15,421 70,714
Revenue Carloads (thousands)
242 286 282 263 1,073 222 229 235 213 899 304 346 329 270 1,249
Average Revenue Per Car (dollars)
2,474 2,420 2,470 2,483 2,461 2,459 2,319 2,367 2,412 2,388 2,540 2,537 2,747 2,662 2,620
28

Intermodal
Union Pacific’s Intermodal business is divided into two shipment
categories: international and domestic. International business
consists of imported and exported container traffic that mainly
passes through West Coast ports served by UP’s extensive
terminal network. Domestic business includes container and
trailer traffic picked up and delivered within North America for
intermodal marketing companies (primarily shipper agents and
logistics companies), as well as truckload carriers. Less-thantruckload
and package carriers with time-sensitive business
requirements are also an important part of domestic shipments.
Together, international and domestic business generated 20
percent of UP’s 2010 freight revenue.
Domestic
44%
2010 Units
International
56%
International traffic moves in 20, 40 or 45 foot shipping
containers through ports on the West Coast. The majority of
domestic shipments move in 48 or 53 foot containers or trailers
to and from points within the U.S., Canada and Mexico.
Union Pacific’s network includes several key intermodal lanes.
The Railroad’s east/west lanes run between the West Coast
and Chicago, Texas and interchange connections to the eastern
U.S. The north/south intermodal lanes operate between Los
Angeles and the Pacific Northwest, as well as Chicago and
the upper Midwest and locations south in Texas and Mexico.
UP also directly accesses all six Mexican gateways and
serves most of the major metropolitan areas in the western
two-thirds of the U.S. Virtually all routes are competitive with
other railroads and are comparable to shipping distances on
highways.
Intermodal Line Density Map
Total intermodal volumes increased 19 percent year-over-year
due to the recovering economy and service-driven growth
from truckload conversions. Strong volumes, higher fuel
surcharges and pricing gains resulted in a 30 percent increase
in total revenue. International revenue grew 25 percent, as
strong imports drove a 20 percent volume increase. Domestic
intermodal revenue jumped 35 percent on an 18 percent
increase in volume, driven by continued truckload conversions,
transloading growth and the conversion of traffic from Hub
Group.
2011 Market Drivers
Prospects for a sustained recovery in 2011 are hopeful.
International volumes are expected to improve year-over-year,
driven by growth in import traffic. Domestic traffic also should
increase, as UP’s value proposition and competitive service
drive more shippers to convert traffic from truck to intermodal
rail. In addition, continued pricing opportunities are anticipated
in both markets.
Union Pacific offers consistent, reliable service for domestic
intermodal customers. New truck-competitive services began in
several lanes during 2010, which are expected to yield volume
growth as customers convert from truck to rail. To support
current volumes and provide for future growth, UP continues
to invest in its intermodal network and equipment. Domestic
container capacity is a key component of this investment. In
2010, UP acquired 9,200 containers and nearly 3,000 chassis
Lane density based on carloadings. Line thickness depicts traffic density.
29

Intermodal
to meet growing demand in the domestic intermodal market,
with the acquisition of an additional 4,800 containers and 4,800
chassis planned for 2011.
John Kaiser,
VP & GM Intermodal
How is your business group positioned to generate
“economy plus” volume growth between 2011 and 2015?
Union Pacific’s Intermodal group is committed to delivering
best-ever service that is responsive, consistent and reliable. Our
comprehensive network provides international customers superior
market coverage and the best value for access to most major U.S.
population centers. Investments in our intermodal network should
favorably position Union Pacific to capture “economy plus” growth
in the years ahead. Our new Joliet, IL intermodal terminal, which
opened in the third quarter of 2010, helps enable UP to efficiently
handle current volumes as well as expected future growth. For
our domestic customers, Union Pacific continues to add and
expand service offerings that provide reliable, truck-competitive
and environmentally friendly service. This improved service should
accommodate additional growth through truckload conversions,
as anticipated driver shortages and increased operating costs
constrain truck capacity. To remain competitive, shippers seek
to reduce costs, and converting from truck to intermodal helps
accomplish this objective.
Our service has never been better. In 2010, we created and
improved service in 86 lanes. We enhanced train schedules to
reduce transit times from 2009 levels, and provided new truckcompetitive
services between Los Angeles and Chicago, the
Northeast, the Ohio Valley and El Paso, as well as between the
PNW and Chicago. As demonstrated by record satisfaction levels,
our customers are pleased with what we have accomplished. With
the tremendous opportunities for growth, train productivity and
price improvement ahead, there should certainly be more to come.
Joliet Intermodal Terminal
30

Intermodal Terminals and Traffic Flows
Annual Summary by Quarter - Intermodal
2010 2009 2008
1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Freight Revenue (millions of dollars)
691 804 880 852 3,227 551 595 656 684 2,486 707 769 842 705 3,023
Revenue Ton-Miles (millions)
18,791 20,177 20,489 20,001 79,458 15,276 17,322 18,411 19,077 70,086 19,552 19,737 19,875 17,014 76,178
Revenue Carloads (thousands)
742 827 903 841 3,313 615 669 728 763 2,775 796 811 834 724 3,165
Average Revenue Per Car (dollars)
930 974 974 1,012 974 897 889 901 896 896 889 947 1,010 974 955
31

Mexico
Union Pacific provides customers the most efficient rail route
between markets in Mexico, the U.S. and Canada. The
Railroad’s unique franchise serves all six major gateways to
Mexico, connecting directly to the two largest Mexican railroads.
In 2010, approximately 54 percent of UP shipments to and from
Mexico interchanged with Ferrocarril Mexicano (Ferromex or
FXE). The remaining 46 percent interchanged with Kansas City
Southern de Mexico (KCSM). Union Pacific retains a 26 percent
ownership interest in Ferromex.
Cooperation with FXE and KCSM allows UP to capture
opportunities created by the North American Free Trade
Agreement (NAFTA) and by Mexico’s competitive position in
today’s global economic landscape. The Railroad also works
with Ferrocarril del Sureste (Ferrosur or FSRR) and other
smaller railroads to explore new businesses. The Mexican
railroads continue investing in equipment, facilities and track to
improve service and performance, which should yield market
share gains from trucks and create new business opportunities.
In addition, Union Pacific’s sales and marketing presence in
Mexico enables direct communication with Mexican customers
and shippers.
Traffic to and from Mexico includes a diversified mix of
commodities within each of Union Pacific’s six business teams.
Approximately 57 percent of UP’s Mexico traffic consists of
southbound shipments. Corn, dry feed ingredients, autos and
auto parts, intermodal, meals and oils, steel, plastics, minerals,
coal, soda ash, wheat and newsprint shipments make up
Mexico Line Density Map
Agricultural
16%
2010 Carloads
Chemicals
6% Energy
1%
Industrial
Products
11%
Intermodal
24%
Automotive
42%
about 80 percent of southbound revenue, with the remainder
spread across the Company’s six business teams. Northbound
shipments grew during the past five years with increased
Mexican manufacturing, and now comprise nearly 45 percent
of revenue from Mexico operations. Autos and auto parts, beer
and food products, steel products and manufactured goods
represent almost 85 percent of northbound revenue.
The recovering economy drove an increase in volume and
revenue for all six business teams in 2010. Mexico shipments
increased 25 percent and revenue grew 30 percent to $1.6
billion. The Energy group reported 15 percent revenue growth
and 9 percent volume growth. Agricultural revenue increased 11
percent and volume increased 9 percent. Food and beverage
revenue increased 16 percent with volume growing 8 percent,
and corn and feed grains revenue increased 20 percent on
20 percent volume growth. Revenue for Industrial Products
increased 29 percent, as steel volumes climbed 54 percent.
Automotive represents the largest share of Mexico revenue and
volume. Lower traffic levels due to economic conditions in 2009,
additional Mexico production capacity and market share gains
in auto parts moving in intermodal containers drove revenue
up 63 percent and volumes up 42 percent. Revenue from
chemicals rose 18 percent, primarily from soda ash, petroleum
products and plastics, and volume increased 12 percent.
Intermodal revenue increased 25 percent with volume up 18
percent.
Lane density based on carloadings. Line thickness depicts traffic density.
32

Mexico
2011 Market Drivers
Union Pacific expects Mexico traffic growth to continue in 2011,
but at more moderate levels versus 2010. The combination
of additional Mexico automotive production capacity coming
online and a projected 12 percent increase in U.S. auto sales
should drive growth in vehicle and parts volumes. Mexican
population growth and insufficient local crop production should
drive continued demand for imported U.S. grain, benefiting UP’s
southbound shipments of corn, soybeans, DDGS and wheat.
Sugar production in Mexico is forecast to increase 7 percent,
which should yield growth in northbound carloads of sugar.
Volume growth in northbound beer is also expected in 2011,
driven by increased U.S. consumption.
Mexican government infrastructure programs, private sector
construction projects and higher commodity prices, combined
with a more stable peso exchange rate are expected to
benefit southbound shipments of scrap, steel, plastics, soda
ash, paper, minerals, construction materials, sand, cardboard
and other products and northbound shipments of household
appliances and steel. In addition, Mexico’s proximity to
U.S. markets should create additional opportunities, as
manufacturing firms seek to shorten supply chains and keep
production costs low. At the same time, persistently high U.S.
unemployment rates may restrain consumer spending, which is
a critical factor for Mexico business.
Union Pacific’s current strategies focus on maintaining excellent
service, developing new business and improving core price,
and support an expectation of retaining current business and
potentially generating growth. Foreign investment in Mexico is
forecast to increase around 4 percent, and the current outlook
suggests that markets such as the “maquiladora” industry, food,
steel, coal/coke and mining minerals should grow in 2011.
Bernardo Ayala,
VP Mexico Markets
How is your business group positioned to generate
“economy plus” volume growth between 2011 and 2015?
UP’s unique franchise directly accesses all six major U.S./Mexico
rail gateways, connecting to Mexico’s fastest growing regions as
well as more mature markets. Our business model focuses on
excellent service and direct interaction with customers. We have
extensive coverage of the Mexican market with sales offices in
Mexico City, Monterrey, El Paso, Laredo and Houston. Building
upon our franchise strengths, customer relationships and record
service, we recently created a sales team dedicated exclusively
to developing new business with customers that do not currently
ship via rail. With sales offices in Guadalajara and Irapuato, this
group targets the fast growing Bajio region northwest of Mexico
City (the states of Jalisco, Queretaro, Guanajuato, Michoacan and
Aguascalientes).
The development of new transportation products and services
provides direct, competitive rail offerings to the Mexico market.
Through these efforts we are well-positioned to effectively handle
existing business as well as expected volume growth. Union
Pacific’s International Customer Service Center helps make
international business seamless for our customers. As worldwide
economic trends continue to improve and Mexico’s competitive
position strengthens, our commitment to meeting customer needs
should enable us to generate “economy plus” volume growth in
the coming years.
Percent of Carloads at Border Crossings
Brownsville
9%
Laredo
37%
Calexico
1%
Nogales
12%
El Paso
9%
Eagle Pass
32%
Rail operations across the border remain fluid. Increased hours
of operation at the Eagle Pass gateway and targeted capital
spending should improve cross border operations at all six
UP-served gateways in 2011, further enhancing the Railroad’s
ability to efficiently handle anticipated traffic growth.
33

SELECTED FINANCIAL DATA
Union Pacific Corporation and Subsidiary Companies
Millions, except per share amounts, carloads, employee statistics and ratios
For the year ended December 31, 2010 2009 2008 2007 2006
Operating revenues [a] $16,965 $14,143 $17,970 $16,283 $15,578
Operating income 4,981 3,379 4,070 3,364 2,871
Net income 2,780 1,890 2,335 1,848 1,598
Earnings per share - basic [b] 5.58 3.76 4.57 3.47 2.97
Earnings per share - diluted [b] 5.53 3.74 4.53 3.44 2.94
Dividends declared per share [b] 1.31 1.08 0.98 0.745 0.60
Cash provided by operating activities 4,105 3,204 4,044 3,248 2,853
Cash used in investing activities (2,488) (2,145) (2,738) (2,397) (2,015)
Cash used for capital investments (2,482) (2,354) (2,754) (2,467) (2,215)
Cash used in financing activities (2,381) (458) (935) (800) (784)
Cash used for common share repurchases (1,249) - (1,609) (1,375) -
At December 31
Total assets $43,088 $42,184 $39,509 $37,825 $36,318
Long-term obligations 22,373 22,701 21,314 19,328 17,589
Debt due after one year 9,003 9,636 8,607 7,543 6,000
Common shareholders’ equity 17,763 16,801 15,315 15,456 15,190
Equity per common share [c] 36.14 33.27 30.43 29.62 28.11
Additonal Data
Freight revenues [a] $16,069 $13,373 $17,118 $15,486 $14,791
Revenue carloads (units) (000) 8,815 7,786 9,261 9,733 9,852
Operating margin (%) [d] 29.4 23.9 22.6 20.7 18.4
Operating ratio (%) [d] 70.6 76.1 77.4 79.3 81.6
Average employees (000) 42.9 43.5 48.2 50.1 50.7
Operating revenues per employee (000) $395.5 $325.1 $372.8 $325.0 $307.2
Financial Ratios (%)
Debt to capital [e] 34.2 37.0 36.8 33.2 30.9
Return on average common shareholders’ equity [f] 16.1 11.8 15.2 12.1 11.1
[a] Includes fuel surcharge revenue which partially offsets increased operating expenses for fuel. Fuel surcharge revenue is not comparable from year to year due to
implementation of new mileage-based fuel surcharge programs in each respective year. See 2010 SEC Form 10-K for more information.
[b] Earnings per share and dividends have been restated to reflect the May 28, 2008 stock split.
[c] Equity per common share is calculated as follows: common shareholders’ equity divided by common shares issued less treasury shares outstanding. Shares have been
adjusted to reflect the May 28, 2008 stock split.
[d] Operating margin is defined as operating income divided by operating revenues. Operating ratio is defined as operating expenses divided by operating revenues.
[e] Debt to capital is determined as follows: total debt divided by total debt plus equity.
[f] Return on average common shareholders’ equity is determined as follows: Net income divided by average common shareholders’ equity.
34

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Union Pacific Corporation and Subsidiary Companies
2010
Millions, except per share amounts and percentages 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Operating Revenues
Freight revenues $3,755 $3,956 $4,187 $4,171 $16,069
Other revenues 210 226 221 239 896
Total operating revenues $3,965 $4,182 $4,408 $4,410 $16,965
Operating Expenses
Compensation and benefits 1,059 1,051 1,092 1,112 4,314
Fuel 583 608 608 687 2,486
Purchased services and materials 432 472 465 467 1,836
Depreciation 367 368 372 380 1,487
Equipment and other rents 290 282 292 278 1,142
Other 246 122 178 173 719
Total operating expenses 2,977 2,903 3,007 3,097 11,984
Operating Income 988 1,279 1,401 1,313 4,981
Other income 1 19 25 9 54
Interest expense (155) (152) (153) (142) (602)
Income before income taxes 834 1,146 1,273 1,180 4,433
Income taxes (318) (435) (495) (405) (1,653)
Net Income $516 $711 $778 $775 $2,780
Share and Per Share
Earnings per share - basic $1.02 $1.42 $1.58 $1.58 $5.58
Earnings per share - diluted $1.01 $1.40 $1.56 $1.56 $5.53
Weighted average number of shares - basic 504.5 501.8 493.0 491.3 498.2
Weighted average number of shares - diluted 508.7 506.5 497.7 496.3 502.9
Dividends declared per share $0.27 $0.33 $0.33 $0.38 $1.31
Operating Ratio 75.1% 69.4% 68.2% 70.2% 70.6%
Effective Tax Rate 38.1% 38.0% 38.9% 34.3% 37.3%
2009
Millions, except per share amounts and percentages 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Operating Revenues
Freight revenues $3,240 $3,121 $3,471 $3,541 $13,373
Other revenues 175 182 200 213 770
Total operating revenues $3,415 $3,303 $3,671 $3,754 $14,143
Operating Expenses
Compensation and benefits 1,070 976 999 1,018 4,063
Fuel 386 370 466 541 1,763
Purchased services and materials 404 399 413 428 1,644
Depreciation 341 350 363 373 1,427
Equipment and other rents 317 307 290 266 1,180
Other 226 153 179 129 687
Total operating expenses 2,744 2,555 2,710 2,755 10,764
Operating Income 671 748 961 999 3,379
Other income 23 135 14 23 195
Interest expense (141) (150) (156) (153) (600)
Income before income taxes 553 733 819 869 2,974
Income taxes (191) (268) (305) (320) (1,084)
Net Income $362 $465 $514 $549 $1,890
Share and Per Share
Earnings per share - basic $0.72 $0.92 $1.02 $1.09 $3.76
Earnings per share - diluted $0.72 $0.92 $1.01 $1.08 $3.74
Weighted average number of shares - basic 502.7 502.9 503.1 503.5 503.0
Weighted average number of shares - diluted 504.6 505.3 507.0 507.8 505.8
Dividends declared per share $0.27 $0.27 $0.27 $0.27 $1.08
Operating Ratio 80.4% 77.4% 73.8% 73.4% 76.1%
Effective Tax Rate 34.5% 36.6% 37.2% 36.8% 36.4%
Refer to the Union Pacific Corporation 2010 SEC Form 10-K for additional information, including audited financial statements and related footnotes.
35

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Union Pacific Corporation and Subsidiary Companies
Millions, as of December 31, 2010 2009
Assets
Current assets:
Cash and cash equivalents $1,086 $1,850
Accounts receivable, net 1,184 666
Materials and supplies 534 475
Current deferred income taxes 261 339
Other current assets 367 350
Total current assets 3,432 3,680
Investments 1,137 1,036
Properties:
Land 4,984 4,891
Road 37,268 35,667
Equipment 8,327 8,209
Other 1,329 1,443
Accumulated depreciation (13,655) (13,008)
Total net properties 38,253 37,202
Other assets 266 266
Total assets $43,088 $42,184
Liabilities and Common Shareholders’ Equity
Current liabilities:
Accounts payable $677 $612
Dividends and interest 383 347
Accrued wages and vacation 357 339
Income and other taxes 337 224
Accrued casualty costs 325 379
Equipment rents payable 86 89
Other 548 480
Debt due within one year 239 212
Total current liabilities 2,952 2,682
Debt due after one year 9,003 9,636
Deferred income taxes 11,557 11,044
Other long-term liabilities 1,813 2,021
Total liabilities 25,325 25,383
Common shareholders’ equity:
Common shares, $2.50 par value, 800,000,000 authorized; 553,931,181 and
553,497,981 issued; 491,565,880 and 505,039,952 outstanding, respectively 1,385 1,384
Paid-in-surplus 3,985 3,968
Retained earnings 17,154 15,027
Treasury stock (4,027) (2,924)
Accumulated other comprehensive loss (734) (654)
Total common shareholders’ equity 17,763 16,801
Total liabilities and common shareholders’ equity $43,088 $42,184
Refer to the 2010 Union Pacific Corporation SEC Form 10-K for additional information.
36

CONSOLIDATED STATEMENTS OF CASH FLOW
Union Pacific Corporation and Subsidiary Companies
Millions, for the years ended December 31, 2010 2009 2008
Operating Activities
Net income $2,780 $1,890 $2,335
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation 1,487 1,427 1,366
Deferred income taxes and unrecognized tax benefits 672 718 545
Net gain on non-operating asset disposition (25) (162) (41)
Other operating activities, net (458) (376) 89
Changes in current assets and liabilities:
Accounts receivable, net (518) (72) 38
Materials and supplies (59) (25) 3
Other current assets (17) (106) 51
Accounts payable and other current liabilities 243 (90) (342)
Cash provided by operating activities 4,105 3,204 4,044
Investing Activities
Capital investments (2,482) (2,354) (2,754)
Proceeds from asset sales 67 187 93
Acquisition of equipment pending financing - (100) (388)
Proceeds from sale of assets financed - 100 388
Other investing activities, net (73) 22 (77)
Cash used in investing activities (2,488) (2,145) (2,738)
Financing Activities
Debt issued 894 843 2,257
Common share repurchases (1,249) - (1,609)
Debt repaid (1,412) (871) (1,208)
Dividends paid (602) (544) (481)
Other financing activities, net (12) 114 106
Cash used in financing activities (2,381) (458) (935)
Net change in cash and cash equivalents (764) 601 371
Cash and cash equivalents at beginning of year 1,850 1,249 878
Cash and cash equivalents at end of year $1,086 $1,850 $1,249
Supplemental Cash Flow Information
Non-cash investing and financing activities:
Capital lease financings $ - $842 $175
Cash dividends declared but not yet paid 183 132 132
Capital investments accrued but not yet paid 125 96 93
Settlement of current liabilities for debt - 14 -
Cash paid during the year for:
Interest, net of amounts capitalized $(614) $(578) $(500)
Income taxes, net of refunds (936) (452) (699)
Refer to the Union Pacific Corporation 2010 SEC Form 10-K for more information.
37

FINANCIAL AND OPERATING STATISTICS (unaudited)
Union Pacific Corporation and Subsidiary Companies
For periods ended December 31, 2010 2009
1st 2nd 3rd 4th Full 1st 2nd 3rd 4th Full
Financial and Revenue Statistics Qtr Qtr Qtr Qtr Year Qtr Qtr Qtr Qtr Year
Operating revenues (millions) $3,965 $4,182 $4,408 $4,410 $16,965 $3,415 $3,303 $3,671 $3,754 $14,143
Operating expenses (millions) $2,977 $2,903 $3,007 $3,097 $11,984 $2,744 $2,555 $2,710 $2,755 $10,764
Operating ratio (%) 75.1 69.4 68.2 70.2 70.6 80.4 77.4 73.8 73.4 76.1
Operating margin (%) 24.9 30.6 31.8 29.8 29.4 19.6 22.6 26.2 26.6 23.9
Compensation and
benefits (millions) $1,059 $1,051 $1,092 $1,112 $4,314 $1,070 $976 $999 $1,018 $4,063
Compensation and benefits/
Operating revenue (%) 26.7 25.1 24.8 25.2 25.4 31.3 29.5 27.2 27.1 28.7
Freight revenue/
Average employees (000) $89.1 $92.9 $96.5 $96.0 $374.7 $72.0 $71.4 $80.3 $84.0 $307.2
Fuel expense (millions) $583 $608 $608 $687 $2,486 $386 $370 $466 $541 $1,763
Average fuel price
per gallon consumed [a] $2.16 $2.29 $2.24 $2.46 $2.29 $1.51 $1.57 $1.87 $2.05 $1.75
Freight revenues (millions) $3,755 $3,956 $4,187 $4,171 $16,069 $3,240 $3,121 $3,471 $3,541 $13,373
Average revenue per car $1,804 $1,815 $1,807 $1,865 $1,823 $1,755 $1,685 $1,706 $1,726 $1,718
Freight revenue/
Revenue ton-mile (cents) 2.96 3.14 3.12 3.14 3.09 2.75 2.76 2.80 2.86 2.79
Effective tax rate (%) 38.1 38.0 38.9 34.3 37.3 34.5 36.6 37.2 36.8 36.4
Debt to capital (%) [b] 34.2 37.0
Adjusted debt to capital (%) [c] 42.5 46.1
Operating Statistics
Revenue carloads (thousands) 2,082 2,180 2,316 2,237 8,815 1,847 1,852 2,035 2,052 7,786
Revenue ton-miles (billions) 127 126 134 133 520 118 113 124 124 479
Gross ton-miles (billions) 224 228 239 240 931 207 201 219 220 847
Average train speed (miles per hour) [d] 26.2 26.4 25.7 26.5 26.2 27.2 27.4 27.4 27.0 27.3
Average system dwell (hours) [d] 26.1 24.7 25.0 25.8 25.4 24.3 24.5 24.5 25.8 24.8
Average rail car inventory [d] 277,549 275,239 274,371 270,642 274,450 286,398 281,780 281,455 282,773 283,102
Fuel consumed (millions of gallons) 263 257 261 270 1,051 252 229 242 256 979
Employees (average) 42,130 42,571 43,375 43,462 42,884 44,997 43,721 43,248 42,157 43,531
GTMs per employee (millions) 5.31 5.36 5.52 5.52 21.72 4.59 4.59 5.06 5.22 19.44
[a] Including taxes and transportation costs.
[b] Debt to capital is computed as follows: total debt divided by total debt plus equity.
[c] Adjusted debt to capital is determined as follows: total debt plus net present value of operating leases plus sale of receivables plus unfunded pension and OPEB divided
by total debt plus equity plus net present value of operating leases plus sale of receivables.
[d] As reported to the Association of American Railroads.
38

NON-GAAP DEFINITIONS
Management believes certain non-GAAP measures provide an alternative presentation of the results that more accurately reflect
ongoing Company operations. These measures should be considered in addition to, not a substitute for, the reported GAAP
results.
Free Cash Flow
Cash provided by operating activities (adjusted for the reclassification of our receivables securitization facility), less cash used in
investing activities and dividends paid. Management believes this is an important measure in evaluating our financial performance
and measures our ability to generate cash without additional external financings.
Return on Invested Capital
Net income plus interest expense, plus interest on present value of operating leases, plus receivable securitization fees, less taxes
on interest and fees divided by average equity plus average debt, plus average value of sold receivables, plus average present
value of operating leases. Management believes this is an important measure for evaluating the efficiency and effectiveness of
the Corporation’s long-term capital investments, and we currently use ROIC as a performance criteria in determining certain
elements of compensation for our executive officers and senior management.
Debt to Capital
Total debt divided by total debt plus equity. Management believes this is an important measure in evaluating our balance sheet
strength and is important in managing our credit ratios and financing relationships.
Adjusted Debt to Capital
Total debt plus value of sold receivables, plus net present value of operating leases, plus after-tax unfunded pension and OPEB
obligation divided by total debt plus net present value of operating leases, plus value of sold receivables, plus after-tax unfunded
pension and OPEB obligation, plus equity. Operating leases were discounted using 6.2% at December 31, 2010, 6.3% at December
31, 2009 and 8.0% at December 31, 2008. The lower discount rate reflects changes to interest rates and our current financing costs.
Management believes this is an important measure in evaluating the total amount of leverage in our capital structure including
off-balance sheet lease obligations.
39

FREE CASH FLOW AND CONSOLIDATED STATEMENT OF CASH FLOWS
Reconciliation to GAAP
Millions
FREE CASH FLOW - RECONCILIATION TO GAAP
2010 2009 2008
Cash provided by operating activities $4,105 $3,204 $4,044
Receivables securitization facility* 400 184 16
Cash provided by operating activities 4,505 3,388 4,060
adjusted for the receivables securitization facility
Cash used in investing activities (2,488) (2,145) (2,738)
Dividends paid (602) (544) (481)
Free cash flow $1,415 $699 $841
* Effective January 1, 2010, a new accounting standard required us to account for receivables transferred under our receivables securitization facility as
secured borrowings in our Consolidated Statements of Financial Position and as financing activities in our Consolidated Statements of Cash Flows. The
receivables securitization facility is included in our free cash flow calculation to adjust cash provided by operating activities as though our receivables
securitization facility had been accounted for under the new accounting standard for all periods presented.
CONSOLIDATED STATEMENTS OF CASH FLOWS
2010 2009 2008
Operating Activities:
Net income $2,780 $1,890 $2,335
Depreciation 1,487 1,427 1,366
Deferred income taxes 672 718 545
Other operating activities - net (834) (831) (202)
Cash Provided by Operating Activities 4,105 3,204 4,044
Investing Activities:
Capital investments (2,482) (2,354) (2,754)
Other investing activities - net (6) 209 16
Cash Used in Investing Activities (2,488) (2,145) (2,738)
Financing Activities:
Debt issued 894 843 2,257
Common shares repurchased (1,249) - (1,609)
Debt repaid (1,412) (871) (1,208)
Dividends paid (602) (544) (481)
Other financing activities - net (12) 114 106
Cash Used in Financing Activities (2,381) (458) (935)
Net Change in Cash and Cash Equivalents $(764) $601 $371
40

RETURN ON INVESTED CAPITAL (ROIC)
Reconciliation to GAAP
Millions, except percentages
2010 2009 2008
Net income $2,780 $1,890 $2,335
Add: Interest expense 602 600 511
Add: Interest on present value of operating leases 222 232 299
Add: Receivable securitization fees - 9 23
Less: Taxes on interest and fees (307) (306) (300)
Net operating profit after taxes as adjusted (a) $3,297 $2,425 $2,868
Average equity $17,282 $16,058 $15,386
Add: Average debt 9,545 9,388 8,305
Add: Average value of sold receivables 200 492 592
Add: Average present value of operating leases 3,574 3,681 3,737
Average invested capital as adjusted (b) $30,601 $29,619 $28,020
Return on invested capital as adjusted (a/b) 10.8% 8.2% 10.2%
DEBT TO CAPITAL/ADJUSTED DEBT TO CAPITAL
2010 2009 2008
Debt (a) $9,242 $9,848 $8,927
Equity 17,763 16,801 15,315
Capital (b) $27,005 $26,649 $24,242
Debt to capital (a/b) 34.2% 37.0% 36.8%
2010 2009 2008
Debt $9,242 $9,848 $8,927
Value of sold receivables - 400 584
Debt including value of sold receivables 9,242 10,248 9,511
Net present value of operating leases 3,476 3,672 3,690
Unfunded pension and OPEB 421 456 734
Adjusted debt (a) $13,139 $14,376 $13,935
Equity 17,763 16,801 15,315
Adjusted capital (b) $30,902 $31,177 $29,250
Adjusted debt to capital (a/b) 42.5% 46.1% 47.6%
41

Cautionary Information
The 2010 Analyst “Fact Book” provides additional explanatory
information regarding Union Pacific that may not be
available, included or directly derived from information in
the Company’s Annual Report. The information provided
is supplemental in nature and is not, and should not be
considered or deemed to be better than that available in the
Company’s publicly available reports filed with the SEC.
Additionally, some of the information in the Fact Book is
derived from the Company’s audited financial statements, but
the Fact Book and its contents have not been, and should not
be considered, audited.
This Fact Book includes statements and information regarding
future expectations or results of the Company that are not
historical facts. These statements and information are, or will
be, forward looking as defined by the federal securities laws.
Forward looking statements and information can be identified
by use of forward looking terminology (and derivations
thereof), such as “believes”, “expects”, “may”, “should”, “will”,
“would”, “intends”, “plans”, “estimates”, “anticipates”, “projects”
and other words or phrases of similar intent. Forward looking
statements and information generally include statements
and information included under sections of this Fact Book
entitled “2011 Market Drivers” and information regarding
business opportunities over the next five years, and specifically
include statements and information regarding: the Company’s
expectations or forecasts with respect to general economic
conditions in the U.S. and the world; the Company’s financial
and operational performance; increases of the Company’s
earnings; demand for the Company’s rail service; the
continued ability of the Company to increase prices; improving
customer service; enhancing profitability; volume and revenue
growth; efficiency improvements and increasing returns;
improving asset utilization; the effectiveness or growth of
new and newer services; management of network volumes;
increasing shareholder value; plans for and total amount of
capital investments; completion and effectiveness of capacity
expansion and other capital investments, and other investments
in upgrading or adding signals and facilities; returns on capital
investments; improvements regarding safety of our operations
and equipment; and effectiveness of plans, programs and
initiatives to reduce costs, improve the Company’s Operating
Ratio and other efficiency improvements.
Forward-looking statements and information should not be
read as a guarantee of future performance or results, and will
not necessarily be accurate indications of the times that, or by
which, such performance or results will be achieved. Forwardlooking
statements and information are subject to risks and
uncertainties that could cause actual performance or results to
differ materially from those expressed in the statements.
Forward-looking statements and information reflect the good
faith consideration by management of currently available
information, and may be based on underlying assumptions
believed to be reasonable under the circumstances. However,
such information and assumptions (and, therefore, such
forward-looking statements and information) are or may
be subject to variables or unknown or unforeseeable events
or circumstances over which management has little or no
influence or control. The Risk Factors in Item 1A of the
Company’s Annual Report on Form 10-K, filed on February
4, 2011, could affect our future results and could cause those
results or other outcomes to differ materially from those
expressed or implied in the forward-looking statements and
information. This Fact Book should be read in consideration
of these Risk Factors. To the extent circumstances require or
the Company deems it otherwise necessary, the Company will
update or amend these Risk Factors in subsequent Annual
Reports, periodic reports on Form 10-Q or current reports on
Form 8-K.
Forward-looking statements speak only as of the date the
statement was made. We assume no obligation to update
forward-looking information to reflect actual results, changes
in assumptions or changes in other factors affecting forwardlooking
information. If we do update one or more forwardlooking
statements, no inference should be drawn that we will
make additional updates with respect thereto or with respect to
other forward-looking statements.
The Company’s financial statements are included solely as
a convenience. The financial statements should be read in
conjunction with the notes to the Financial Statements and
Supplementary Data in Item 8 of the Company’s 2010 Annual
Report on Form 10-K.
42