Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 20, 2017 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Document period end date | Sep. 30, 2017 | |
Amendment flag | false | |
Entity registrant name | UNION PACIFIC CORP | |
Entity central index key | 100,885 | |
Entity current reporting status | Yes | |
Entity voluntary filers | No | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity well known seasoned issuer | Yes | |
Document fiscal year focus | 2,017 | |
Document fiscal period focus | Q3 | |
Trading Symbol | unp | |
Entity common stock shares outstanding | 787,168,815 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating revenues: | ||||
Freight revenues | $ 5,050 | $ 4,837 | $ 14,750 | $ 13,769 |
Other revenues | 358 | 337 | 1,040 | 1,004 |
Total operating revenues | 5,408 | 5,174 | 15,790 | 14,773 |
Operating expenses: | ||||
Compensation and benefits | 1,298 | 1,191 | 3,752 | 3,564 |
Purchased services and materials | 615 | 566 | 1,778 | 1,705 |
Depreciation | 528 | 512 | 1,573 | 1,518 |
Fuel | 450 | 392 | 1,344 | 1,058 |
Equipment and other rents | 275 | 282 | 824 | 857 |
Other | 230 | 271 | 709 | 764 |
Total operating expenses | 3,396 | 3,214 | 9,980 | 9,466 |
Operating income | 2,012 | 1,960 | 5,810 | 5,307 |
Other income (Note 7) | 151 | 29 | 261 | 152 |
Interest expense | (180) | (184) | (531) | (524) |
Income before income taxes | 1,983 | 1,805 | 5,540 | 4,935 |
Income taxes | (789) | (674) | (2,106) | (1,846) |
Net income | $ 1,194 | $ 1,131 | $ 3,434 | $ 3,089 |
Share and Per Share (Note 9): | ||||
Earnings per share - basic | $ 1.50 | $ 1.36 | $ 4.27 | $ 3.69 |
Earnings per share - diluted | $ 1.50 | $ 1.36 | $ 4.26 | $ 3.68 |
Weighted average number of shares - basic | 794.5 | 829 | 803.4 | 836.8 |
Weighted average number of shares - diluted | 797.6 | 832.2 | 806.5 | 839.6 |
Dividends declared per share | $ 0.605 | $ 0.55 | $ 1.815 | $ 1.65 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||||||
Net income | $ 1,194 | $ 1,131 | $ 3,434 | $ 3,089 | ||||
Other comprehensive income/(loss): | ||||||||
Defined benefit plans | 40 | 14 | 66 | 35 | ||||
Foreign currency translation | 9 | (1) | 34 | (25) | ||||
Total other comprehensive income/(loss) | 49 | [1] | 13 | [1] | 100 | [2] | 10 | [2] |
Comprehensive income | $ 1,243 | $ 1,144 | $ 3,534 | $ 3,099 | ||||
[1] | Net of deferred taxes of $(27) million and $(7) million during the three months ended September 30, 2017, and 2016, respectively. | |||||||
[2] | Net of deferred taxes of $(59) million and $(8) million during the nine months ended September 30, 2017, and 2016, respectively. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Consolidated Statements of Comprehensive Income (Parentheticals) [Abstract] | ||||
Deferred taxes activity other comprehensive income/(loss) | $ (27) | $ (7) | $ (59) | $ (8) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Financial Position - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,847 | $ 1,277 |
Short-term investments (Note 14) | 90 | 60 |
Accounts receivable, net (Note 11) | 1,428 | 1,258 |
Materials and supplies | 742 | 717 |
Other current assets | 342 | 284 |
Total current assets | 4,449 | 3,596 |
Investments | 1,566 | 1,457 |
Net properties (Note 12) | 51,036 | 50,389 |
Other assets | 346 | 276 |
Total assets | 57,397 | 55,718 |
Current liabilities: | ||
Accounts payable and other current liabilities (Note 13) | 2,928 | 2,882 |
Debt due within one year (Note 15) | 903 | 758 |
Total current liabilities | 3,831 | 3,640 |
Debt due after one year (Note 15) | 15,930 | 14,249 |
Deferred income taxes | 16,524 | 15,996 |
Other long-term liabilities | 1,961 | 1,901 |
Commitments and contingencies (Note 17) | ||
Total liabilities | 38,246 | 35,786 |
Common shareholders' equity: | ||
Common shares, $2.50 par value, 1,400,000,000 authorized; 1,111,418,228 and 1,110,986,415 issued; 789,834,578 and 815,824,413 outstanding, respectively | 2,778 | 2,777 |
Paid-in-surplus | 4,454 | 4,421 |
Retained earnings | 34,561 | 32,587 |
Treasury stock | (21,470) | (18,581) |
Accumulated other comprehensive loss (Note 10) | (1,172) | (1,272) |
Total common shareholders' equity | 19,151 | 19,932 |
Total liabilities and common shareholders' equity | $ 57,397 | $ 55,718 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Financial Position (Parentheticals) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Consolidated Statements of Financial Position (Parentheticals) [Abstract] | ||
Common shares, par value | $ 2.50 | $ 2.50 |
Common shares authorized | 1,400,000,000 | 1,400,000,000 |
Common shares issued | 1,111,418,228 | 1,110,986,415 |
Common shares outstanding | 789,834,578 | 815,824,413 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | ||
Net income | $ 3,434 | $ 3,089 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 1,573 | 1,518 |
Deferred and other income taxes | 514 | 519 |
Other operating activities, net | 85 | (268) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | (170) | 5 |
Materials and supplies | (25) | 46 |
Other current assets | (58) | (15) |
Accounts payable and other current liabilities | (43) | 79 |
Income and other taxes | 88 | 494 |
Cash provided by operating activities | 5,398 | 5,467 |
Investing Activities | ||
Capital investments | (2,379) | (2,604) |
Proceeds from asset sales | 152 | 116 |
Purchases of short-term investments (Note 14) | (90) | (580) |
Maturities of short-term investments (Note 14) | 60 | 250 |
Other investing activities, net | (3) | (1) |
Cash used in investing activities | (2,260) | (2,819) |
Financing Activities | ||
Common share repurchases (Note 18) | (2,882) | (2,100) |
Debt issued (Note 15) | 2,285 | 1,883 |
Dividends paid | (1,460) | (1,382) |
Debt repaid | (471) | (481) |
Other financing activities, net | (40) | (50) |
Cash used in financing activities | (2,568) | (2,130) |
Net change in cash and cash equivalents | 570 | 518 |
Cash and cash equivalents at beginning of year | 1,277 | 1,391 |
Cash and cash equivalents at end of period | 1,847 | 1,909 |
Non-cash investing and financing activities: | ||
Capital investments accrued but not yet paid | 120 | 106 |
Common shares repurchased but not yet paid | 29 | 65 |
Cash (paid for)/received from: | ||
Income taxes, net of refunds | (1,557) | (877) |
Interest, net of amounts capitalized | $ (532) | $ (540) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Common Shareholders' Equity - USD ($) $ in Millions | Common Shares [Member] | Paid-in-Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI [Member] | [1] | Total | |
Shareholders' equity, beginning balance at Dec. 31, 2015 | $ 2,776 | $ 4,417 | $ 30,233 | $ (15,529) | $ (1,195) | $ 20,702 | ||
Common shares, beginning balance at Dec. 31, 2015 | 1,110,400,000 | (261,200,000) | ||||||
Net income | 3,089 | 3,089 | ||||||
Other comprehensive income/(loss) | 10 | 10 | [2] | |||||
Conversion, stock option exercises, forfeitures, and other | $ 1 | (11) | $ 40 | 30 | ||||
Conversion, stock option exercises, forfeitures, and other (shares) | 600,000 | 800,000 | ||||||
Share repurchases (Note 18) | $ (2,165) | $ (2,165) | ||||||
Share repurchases (Note 18) (shares) | (25,400,000) | (25,430,520) | ||||||
Cash dividends declared | (1,382) | $ (1,382) | ||||||
Shareholders' equity, ending balance at Sep. 30, 2016 | $ 2,777 | 4,406 | 31,940 | $ (17,654) | (1,185) | 20,284 | ||
Common shares, ending balance at Sep. 30, 2016 | 1,111,000,000 | (285,800,000) | ||||||
Shareholders' equity, beginning balance at Dec. 31, 2016 | $ 2,777 | 4,421 | 32,587 | $ (18,581) | (1,272) | $ 19,932 | ||
Common shares, beginning balance at Dec. 31, 2016 | 1,111,000,000 | (295,200,000) | 815,824,413 | |||||
Net income | 3,434 | $ 3,434 | ||||||
Other comprehensive income/(loss) | 100 | 100 | [2] | |||||
Conversion, stock option exercises, forfeitures, and other | $ 1 | 33 | $ 22 | 56 | ||||
Conversion, stock option exercises, forfeitures, and other (shares) | 400,000 | 700,000 | ||||||
Share repurchases (Note 18) | $ (2,911) | $ (2,911) | ||||||
Share repurchases (Note 18) (shares) | (27,100,000) | (27,121,338) | ||||||
Cash dividends declared | (1,460) | $ (1,460) | ||||||
Shareholders' equity, ending balance at Sep. 30, 2017 | $ 2,778 | $ 4,454 | $ 34,561 | $ (21,470) | $ (1,172) | $ 19,151 | ||
Common shares, ending balance at Sep. 30, 2017 | 1,111,400,000 | (321,600,000) | 789,834,578 | |||||
[1] | AOCI = Accumulated Other Comprehensive Income/(Loss) (Note 10) | |||||||
[2] | Net of deferred taxes of $(59) million and $(8) million during the nine months ended September 30, 2017, and 2016, respectively. |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Changes in Common Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share | $ 0.605 | $ 0.55 | $ 1.815 | $ 1.65 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | For purposes of this report, unless the context otherwise requires, all references herein to the “Corporation”, “Company”, “UPC”, “we”, “us”, and “our” mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which will be separately referred to herein as “UPRR” or the “Railroad”. 1. Basis of Presentation Our Condensed Consolidated Financial Statements are unaudited and reflect all adjustments (consisting of normal and recurring adjustments) that are, in the opinion of management, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (GAAP). Pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Consolidated Financial Statements and notes thereto contained in our 2016 Annual Report on Form 10-K. Our Consolidated Statement of Financial Position at December 31, 2016, is derived from audited financial statements. The results of operations for the nine months ended September 30, 2017, are not necessarily indicative of the results for the entire year ending December 31, 2017. The Condensed Consolidated Financial Statements are presented in accordance with GAAP as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Pronouncements [Abstract] | |
Accounting Pronouncements | 2. Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition guidance in Topic 605, Revenue Recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. This may require the use of more judgment and estimates in order to correctly recognize the revenue expected as an outcome of each specific performance obligation. Additionally, this guidance will require the disclosure of the nature, amount, and timing of revenue arising from contracts so as to aid in the understanding of the users of financial statements. This standard is effective for annual reporting periods beginning after December 15, 2017, and we intend to adopt the standard beginning in 2018 using the modified retrospective transition method. The Company has analyzed a significant proportion of our freight and other revenues and we expect to continue to recognize freight revenues as freight moves from origin to destination and to recognize other revenues as identified performance obligations are satisfied. We are currently analyzing freight and other revenues in the context of the new guidance on principal versus agent considerations and evaluating the required new disclosures. At this time, ASU 2014-09 is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01), Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) . ASU 2016-01 provides guidance for the recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted. ASU 2016-01 is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (ASU 2016-02), Leases (Subtopic 842) . ASU 2016-02 will require companies to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. Management is currently evaluating the impact of this standard on our consolidated financial position, results of operations, and cash flows, but expects that the adoption will result in a significant increase in the Company’s assets and liabilities. In March 2017, the FASB issued Accounting Standards Update No. 2017-07 (ASU 2017-07), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715) . ASU 2017-07 requires the service cost component be reported separately from the other components of net benefit costs in the income statement, provides explicit guidance on the presentation of the service cost component and the other components of net benefit cost in the income statement, and allows only the service cost component of net benefit cost to be eligible for capitalization. This standard is effective for annual and interim reporting periods beginning after December 15, 2017, and requires retrospective adoption. Early adoption is permitted. ASU 2017-07 is not expected to have a n impact on our consolidated financial posi tion, results of operations, cash flows , net income or earnings per share as a result of adopting this new standard. The Company currently records service costs and net benefit costs within compensation and benefits expense. Upon adoption, only the service cost will be recorded within compensation and benefits expense, and the other components of net benefit costs, including $67 million related to the 2017 workforce reduction plan as described in Note 6, will be recorded in other income. The retrospective impact of future adoption is shown in the table below: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Increase/(decrease) in operating income $ 61 $ (8) $ 49 $ (24) Increase/(decrease) in other income (61) 8 (49) 24 |
Workforce Reduction Plan
Workforce Reduction Plan | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Workforce Reduction Plan | 3. Workforce Reduction Plan On August 16, 2017, the Company approved and commenced a management and administrative personnel reorganization plan (the “Plan”) furthering its on-going efforts to increase efficiency and more effectively align Company resources. The Plan implemented productivity initiatives identified during a recently completed Company-wide organizational review that included the reduction of approximately 460 management positions and 150 agreement positions. An additional 100 agreement positions have been identified and will be eliminated throughout the remainder of 2017. The Plan resulted in a pretax charge recognized in the third quarter of 2017 within compensation and benefits expense in our Condensed Consolidated Statements of Income. This charge consisted of management employee termination benefits, including pension expenses, severance costs, and acceleration of equity compensation expense as shown in the table below. The actions associated with the Plan are substantially complete, and we do not expect to incur additional charges for the Plan in subsequent years. Millions Compensation and As of September 30, 2017 Benefits Expense Liability Pension $ 67 $ 67 Severance 12 12 Equity Compensation 5 5 Total $ 84 $ 84 |
Operations and Segmentation
Operations and Segmentation | 9 Months Ended |
Sep. 30, 2017 | |
Operations and Segmentation [Abstract] | |
Operations and Segmentation | 4. Operations and Segmentation The Railroad, along with its subsidiaries and rail affiliates, is our one reportable operating segment. Although we provide and analyze revenue by commodity group, we treat the financial results of the Railroad as one segment due to the integrated nature of our rail network. The following table provides freight revenue by commodity group: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Agricultural Products $ 914 $ 937 $ 2,763 $ 2,664 Automotive 469 485 1,486 1,483 Chemicals 896 875 2,679 2,617 Coal 711 728 1,978 1,741 Industrial Products 1,079 855 3,016 2,519 Intermodal 981 957 2,828 2,745 Total freight revenues $ 5,050 $ 4,837 $ 14,750 $ 13,769 Other revenues 358 337 1,040 1,004 Total operating revenues $ 5,408 $ 5,174 $ 15,790 $ 14,773 Although our revenues are principally derived from customers domiciled in the U.S., the ultimate points of origination or destination for some products we transport are outside the U.S. Each of our commodity groups includes revenue from shipments to and from Mexico. Included in the above table are freight revenues from our Mexico business which amounted to $555 million and $564 million, respectively, for the three months ended September 30, 2017, and September 30, 2016, and $1,697 million and $1,649 million, respectively, for the nine months ended September 30, 2017, and September 30, 2016 . |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Stock-based compensation [Abstract] | |
Stock-based Compensation | 5 . Stock-Based Compensation We have several stock-based compensation plans under which employees and non-employee directors receive stock options, nonvested retention shares, and nonvested stock units. We refer to the nonvested shares and stock units collectively as “retention awards”. We have elected to issue treasury shares to cover option exercises and stock unit vestings, while new shares are issued when retention shares are granted. Information regarding stock-based compensation appears in the table below: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Stock-based compensation, before tax: Stock options $ 6 $ 5 $ 15 $ 13 Retention awards 24 15 68 48 Total stock-based compensation, before tax $ 30 $ 20 $ 83 $ 61 Excess tax benefits from equity compensation plans $ 4 $ 5 $ 29 $ 21 Stock Options – We estimate the fair value of our stock option awards using the Black-Scholes option pricing model. The table below shows the annual weighted-average assumptions used for valuation purposes: Weighted-Average Assumptions 2017 2016 Risk-free interest rate 2.0% 1.3% Dividend yield 2.3% 2.9% Expected life (years) 5.3 5.1 Volatility 21.7% 23.2% Weighted-average grant-date fair value of options granted $ 18.19 $ 11.36 The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant; the expected dividend yield is calculated as the ratio of dividends paid per share of common stock to the stock price on the date of grant; the expected life is based on historical and expected exercise behavior; and expected volatility is based on the historical volatility of our stock price over the expected life of the option. A summary of stock option activity during the nine months ended September 30, 2017, is presented below: Options (thous.) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (millions) Outstanding at January 1, 2017 6,162 $ 73.13 5.9 yrs. $ 205 Granted 1,086 107.30 N/A N/A Exercised (648) 47.64 N/A N/A Forfeited or expired (90) 91.17 N/A N/A Outstanding at September 30, 2017 6,510 $ 81.12 6.0 yrs. $ 233 Vested or expected to vest at September 30, 2017 6,477 $ 80.98 6.0 yrs. $ 233 Options exercisable at September 30, 2017 4,118 $ 72.95 4.5 yrs. $ 181 Stock options are granted at the closing price on the date of grant, have ten -year contractual terms, and vest no later than three years from the date of grant . None of the stock options outstanding at September 30, 2017, are subject to performance or market-based vesting conditions. At September 30, 2017, there was $22 million of unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 1.4 years. Additional information regarding stock option exercises appears in the table below: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Intrinsic value of stock options exercised $ 10 $ 15 $ 40 $ 32 Cash received from option exercises 11 11 39 24 Treasury shares repurchased for employee payroll taxes (3) (4) (12) (9) Tax benefit realized from option exercises 4 5 15 12 Aggregate grant-date fair value of stock options vested - - 19 19 Retention Awards – The fair value of retention awards is based on the closing price of the stock on the grant date. Dividends and dividend equivalents are paid to participants during the vesting periods. Changes in our retention awards during the nine months ended September 30, 2017, were as follows: Shares (thous.) Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2017 2,789 $ 84.68 Granted 562 107.30 Vested (801) 68.10 Forfeited (79) 92.82 Nonvested at September 30, 2017 2,471 $ 94.94 Retention awards are granted at no cost to the employee or non-employee director and vest over periods lasting up to four years. At September 30, 2017, there was $99 million of total unrecognized compensation expense related to nonvested retention awards, which is expected to be recognized over a weighted-average period of 1.8 years. Performance Retention Awards – In February 2017, our Board of Directors approved performance stock unit grants. The basic terms of these performance stock units are identical to those granted in February 2016, except for different annual return on invested capital (ROIC) performance targets. The 2016 and 2017 plans also include relative operating income growth (OIG) as a modifier compared to the companies included in the S&P 500 Industrials Index. We define ROIC as net operating profit adjusted for interest expense (including interest on the present value of operating leases) and taxes on interest divided by average invested capital adjusted for the present value of operating leases. The modifier can be up to +/- 25% of the award earned based on the ROIC achieved. Stock units awarded to selected employees under these grants are subject to continued employment for 37 months and the attainment of certain levels of ROIC, and for the 2016 and 2017 plans, modified for the relative OIG. We expense the fair value of the units that are probable of being earned based on our forecasted ROIC over the 3 -year performance period, and with respect to the third year of the 2016 and 2017 plans, the relative OIG modifier. We measure the fair value of these performance stock units based upon the closing price of the underlying common stock as of the date of grant, reduced by the present value of estimated future dividends. Dividend equivalents are paid to participants only after the units are earned. The assumptions used to calculate the present value of estimated future dividends related to the February 2017 grant were as follows: 2017 Dividend per share per quarter $ 0.605 Risk-free interest rate at date of grant 1.5% Changes in our performance retention awards during the nine months ended September 30, 2017, were as follows: Shares (thous.) Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2017 1,145 $ 86.23 Granted 461 101.38 Vested (255) 83.06 Unearned (110) 83.06 Forfeited (52) 92.20 Nonvested at September 30, 2017 1,189 $ 92.82 At September 30, 2017, there was $47 million of total unrecognized compensation expense related to nonvested performance retention awards, which is expected to be recognized over a weighted-average period of 1.8 years. This expense is subject to achievement of the performance measures established for the performance stock unit grants. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Plans [Abstract] | |
Retirement Plans | 6 . Retirement Plans Pension and Other Postretirement Benefits Pension Plans – We provide defined benefit retirement income to eligible non-union employees through qualified and non-qualified (supplemental) pension plans. Qualified and non-qualified pension benefits are based on years of service and the highest compensation during the latest years of employment, with specific reductions made for early retirements. Other Postretirement Benefits (OPEB) – We provide medical and life insurance benefits for eligible retirees. These benefits are funded as medical claims and life insurance premiums are paid. Expense Both pension and OPEB expense are determined based upon the annual service cost of benefits (the actuarial cost of benefits earned during a period) and the interest cost on those liabilities, less the expected return on plan assets. The expected long-term rate of return on plan assets is applied to a calculated value of plan assets that recognizes changes in fair value over a five -year period. This practice is intended to reduce year-to-year volatility in pension expense, but it can have the effect of delaying the recognition of differences between actual returns on assets and expected returns based on long-term rate of return assumptions. Differences in actual experience in relation to assumptions are not recognized in net income immediately, but are deferred in accumulated other comprehensive income and, if necessary, amortized as pension or OPEB expense. The workforce reduction plan initiated in the third quarter of 2017 included a curtailment loss of $20 million and a special termination benefit of $47 million as a result of a remeasurement as of September 30, 2017 , due to the eliminated future service for approximately 460 management employees. These amounts were recognized in the third quarter of 2017 within compensation and benefits expense in our Condensed Consolidated Statements of Income . In connection with this remeasurement, the Company also updated the pension effective discount rate assumption from 4.20% to 3.81 % . The components of our net periodic pension cost were as follows: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Service cost $ 21 $ 21 $ 66 $ 64 Interest cost 35 36 106 107 Expected return on plan assets (66) (67) (198) (201) Curtailment cost 20 - 20 - Special termination cost 47 - 47 - Amortization of actuarial loss 20 21 59 62 Net periodic pension cost $ 77 $ 11 $ 100 $ 32 The components of our net periodic OPEB cost were as follows: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Service cost $ - $ - $ 1 $ 1 Interest cost 3 2 8 8 Amortization of: Prior service credit - (2) - (7) Actuarial loss 2 2 7 7 Net periodic OPEB cost $ 5 $ 2 $ 16 $ 9 Cash Contributions For the nine months ended September 30, 2017, we did not make any cash contributions to the qualified pension plan. Any contributions made during 2017 will be based on cash generated from operations and financial market considerations. Our policy with respect to funding the qualified plans is to fund at least the minimum required by law and not more than the maximum amount deductible for tax purposes. At September 30, 2017 , we do not have minimum cash funding requirements for 2017. |
Other Income
Other Income | 9 Months Ended |
Sep. 30, 2017 | |
Other Income [Abstract] | |
Other Income | 7 . Other Income Other income included the following: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Rental income [a] $ 89 $ 23 $ 152 $ 71 Net gain on non-operating asset dispositions [b] [c] 63 3 108 91 Interest income 4 3 10 8 Non-operating environmental costs and other (5) - (9) (18) Total $ 151 $ 29 $ 261 $ 152 [a] 2017 includes $65 million related to a favorable litigation settlement in the third quarter . [b] 2017 includes $26 million related to a real estate sale in the first quarter and $57 million related to a real estate sale in the third quarter. [c ] 2016 includes $17 million related to a real estate sale in the first quarter and $50 million related to a real estate sale in the second quarter. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax [Abstract] | |
Income Taxes | 8 . Income Taxes The statute of limitations has run for all years prior to 2013 and UPC is not currently under examination by the Internal Revenue Service (IRS) for any of its open years. In 2017, UPC amended its 2013 income tax returns, primarily to claim deductions resulting from the resolution of prior year IRS examinations . In 2016, UPC amended its 2011 and 2012 income tax returns to claim deductions resulting from the resolution of IRS examinations for years prior to 2011. The IRS and Joint Committee on Taxation have completed their review of these amended returns, and in the third quarter of 2017, we received a refund of $62 million, consisting of $60 million of tax and $2 million of interest. Several state tax authorities are examining our state tax returns for years 2006 through 2014. At September 30, 2017, we had a net liability for unrecognized tax benefits of $170 million. On July 6, 2017, the State of Illinois increased its corporate income tax rate effective July 1, 2017. In th e third quarter of 2017, we increase d our deferred tax expense by $33 million to reflect the increased tax rate. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9 . Earnings Per Share The following table provides a reconciliation between basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, Millions, Except Per Share Amounts 2017 2016 2017 2016 Net income $ 1,194 $ 1,131 $ 3,434 $ 3,089 Weighted-average number of shares outstanding: Basic 794.5 829.0 803.4 836.8 Dilutive effect of stock options 1.7 1.6 1.7 1.4 Dilutive effect of retention shares and units 1.4 1.6 1.4 1.4 Diluted 797.6 832.2 806.5 839.6 Earnings per share – basic $ 1.50 $ 1.36 $ 4.27 $ 3.69 Earnings per share – diluted $ 1.50 $ 1.36 $ 4.26 $ 3.68 Stock options excluded as their inclusion would be anti-dilutive 1.9 0.9 1.8 2.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income/(Loss) [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | 10 . Accumulated Other Comprehensive Income/(Loss) Reclassifications out of accumulated other comprehensive income/(loss) for the three and nine months ended September 30, 2017, and 2016, were as follows (net of tax): Millions Defined benefit plans Foreign currency translation Total Balance at July 1, 2017 $ (1,106) $ (115) $ (1,221) Other comprehensive income/(loss) before reclassifications 3 9 12 Amounts reclassified from accumulated other comprehensive income/(loss) [a] 37 - 37 Net quarter-to-date other comprehensive income/(loss), net of taxes of $(27) million 40 9 49 Balance at September 30, 2017 $ (1,066) $ (106) $ (1,172) Balance at July 1, 2016 $ (1,082) $ (116) $ (1,198) Other comprehensive income/(loss) before reclassifications 1 (1) - Amounts reclassified from accumulated other comprehensive income/(loss) [a] 13 - 13 Net quarter-to-date other comprehensive income/(loss), net of taxes of $(7) million 14 (1) 13 Balance at September 30, 2016 $ (1,068) $ (117) $ (1,185) Millions Defined benefit plans Foreign currency translation Total Balance at January 1, 2017 $ (1,132) $ (140) $ (1,272) Other comprehensive income/(loss) before reclassifications 1 34 35 Amounts reclassified from accumulated other comprehensive income/(loss) [a] 65 - 65 Net year-to-date other comprehensive income/(loss), net of taxes of $(59) million 66 34 100 Balance at September 30, 2017 $ (1,066) $ (106) $ (1,172) Balance at January 1, 2016 $ (1,103) $ (92) $ (1,195) Other comprehensive income/(loss) before reclassifications (4) (25) (29) Amounts reclassified from accumulated other comprehensive income/(loss) [a] 39 - 39 Net year-to-date other comprehensive income/(loss), net of taxes of $(8) million 35 (25) 10 Balance at September 30, 2016 $ (1,068) $ (117) $ (1,185) [a] The accumulated other comprehensive income/(loss) reclassification components are 1) prior service cost/(credit) and 2) net actuarial loss which are both included in the computation of net p eriodic pension cost. See Note 6 Retirement Plans for additional details. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | 11 . Accounts Receivable Accounts receivable includes freight and other receivables reduced by an allowance for doubtful accounts. The allowance is based upon historical losses, credit worthiness of customers, and current economic conditions. At September 30, 2017, and December 31, 2016, our accounts receivable were reduced by $2 million and $5 million, respectively. Receivables not expected to be collected in one year and the associated allowances are classified as other assets in our Condensed Consolidated Statements of Financial Position. At both September 30, 2017, and December 31, 2016, receivables classified as other assets were reduced by allowances of $17 million . Receivables Securitization Facility – The Railroad maintains a $650 million, 3 -year receivables securitiz ation facility (the Receivables Facility) maturing in July 2019 . Under the Receivables Facility, the Railroad sells most of its eligible third-party receivables to Union Pacific Receivables , Inc. (UPRI), a consolidated, wholly-owned, bankruptcy-remote subsidiary that may subsequently transfer, without recourse, an undivided interest in accounts receivable to investors. The investors have no recourse to the Railroad’s other assets except for customary warranty and indemnity claims. Creditors of the Railroad do not have recourse to the assets of UPRI. The amount outstanding under the Receivables Facility was $200 million and $0 at September 30, 2017, and December 31, 2016, respectively. The Receivables Facility was supported by $1.1 billion and $1.0 billion of accounts receivable as collateral at September 30, 2017, and December 31, 2016, respectively, which, as a retained interest, is included in accounts receivable, net in our Condensed Consolidated Statements of Financial Position. The outstanding amount the Railroad is all owed to maintain under the Receivables Facility, with a maximum of $650 million, may fluctuate based on the availability of eligible receivables and is directly affected by business volumes and credit risks, including receivables payment quality measures such as default and dilution ratios. If default or dilution ratios increase one percent, the allowable outstanding amount under the Receivables Facility would not materially change. The costs of the Receivables Facility include interest, which will vary based on prevailing benchmark and commercial paper rates, program fees paid to participating banks, commercial paper issuance costs, and fees of participating banks for unused commitment availability. The costs of the Receivables Facility are included in interest expense and were $1 million and $2 million for the three months ended September 30, 2017, and 2016, respectively, and $4 million and $5 million for the nine months ended September 30, 2017, and 2016, respectively. |
Properties
Properties | 9 Months Ended |
Sep. 30, 2017 | |
Properties [Abstract] | |
Properties | 12 . Properties The following tables list the major categories of property and equipment, as well as the weighted-average estimated useful life for each category (in years): Millions, Except Estimated Useful Life Accumulated Net Book Estimated As of September 30, 2017 Cost Depreciation Value Useful Life Land $ 5,228 $ N/A $ 5,228 N/A Road: Rail and other track material 16,226 5,869 10,357 43 Ties 10,084 2,863 7,221 33 Ballast 5,376 1,493 3,883 34 Other roadway [a] 18,732 3,420 15,312 47 Total road 50,418 13,645 36,773 N/A Equipment: Locomotives 9,309 3,606 5,703 20 Freight cars 2,254 980 1,274 24 Work equipment and other 939 263 676 19 Total equipment 12,502 4,849 7,653 N/A Technology and other 1,028 441 587 11 Construction in progress 795 - 795 N/A Total $ 69,971 $ 18,935 $ 51,036 N/A Millions, Except Estimated Useful Life Accumulated Net Book Estimated As of December 31, 2016 Cost Depreciation Value Useful Life Land $ 5,220 $ N/A $ 5,220 N/A Road: Rail and other track material 15,845 5,722 10,123 40 Ties 9,812 2,736 7,076 33 Ballast 5,242 1,430 3,812 34 Other roadway [a] 18,138 3,226 14,912 47 Total road 49,037 13,114 35,923 N/A Equipment: Locomotives 9,692 3,939 5,753 20 Freight cars 2,243 972 1,271 24 Work equipment and other 905 232 673 19 Total equipment 12,840 5,143 7,697 N/A Technology and other 974 412 562 11 Construction in progress 987 - 987 N/A Total $ 69,058 $ 18,669 $ 50,389 N/A [a] Other roadway includes grading, bridges and tunnels, signals, buildings, and other road assets. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Payable and Other Current Liabilties [Abstract] | |
Accounts Payable and Other Current Liabilities | 13 . Accounts Payable and Other Current Liabilities Sep. 30, Dec. 31, Millions 2017 2016 Accounts payable $ 838 $ 955 Income and other taxes payable 561 472 Accrued wages and vacation 384 387 Accrued casualty costs 203 185 Interest payable 179 212 Equipment rents payable 107 101 Other 656 570 Total accounts payable and other current liabilities $ 2,928 $ 2,882 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Financial Instruments[Abstract] | |
Financial Instruments | 14 . Financial Instruments Short-Term Investments – The Company’s short-term investments consist of time deposits ( $ 90 million as of September 30, 2017). These investments are considered level 2 investments and are valued at amortized cost, which approximates fair value . All short-term investments have a maturity of less than one year and are classified as held-to-maturity. There were no transfers out of Level 2 during the nine months ended September 30, 2017. Fair Value of Financial Instruments – The fair value of our short- and long-term debt was estimated using a market value price model, which utilizes applicable U.S. Treasury rates along with current market quotes on comparable debt securities. All of the inputs used to determine the fair market value of the Corporation’s long-term debt are Level 2 inputs and obtained from an independent source. At September 30, 2017, the fair value of total debt was $18.0 billion, approximately $1.2 billion more than the carrying value. At December 31, 2016, the fair value of total debt was $15.9 billion, approximately $0.9 billion more than the carrying value. The fair value of the Corporation’s debt is a measure of its current value under present market conditions. It does not impact the financial statements under current accounting rules. At both September 30, 2017, and December 31, 2016, approxim ately $155 million of debt securities contained call provisions that allow us to retire the debt instruments prior to final maturity, with the payment of fixed call premiums, or in certain cases, at par. The fair value of our cash equivalents approximates their carrying value due to the short-term maturities of these instruments. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt [Abstract] | |
Debt | 15 . Debt Credit Facilities – At September 30, 2017, we had $ 1.7 billion of credit available under our revolving credit facility, which is designated for general corporate purposes and supports the issuance of commercial paper. We did not draw on the facility during the nine months ended September 30, 2017. Commitment fees and interest rates payable under the facility are similar to fees and rates available to comparably rated, investment-grade borrowers . The facility allows for borrowings at floating rates based on London Interbank Offered Rates, plus a spread, depending upon credit ratings for our senior unsecured debt. The facility matures in May 2019 under a five -year term and requires UPC to maintain a debt-to-net-worth coverage ratio. The definition of debt used for purposes of calculating the debt-to-net-worth coverage ratio includes, among other things, certain credit arrangements, capital leases, guarantees and unfunded and vested pension benefits under Title IV of ERISA. At September 30, 2017, the Company was in compliance with the debt-to-net-worth coverage ratio, which allows us to carry up to $38.3 billion of debt (as defined in the facility), and we had $16.9 billion of debt (as defined in the facility) outstanding at that date. Under our current financial plans, we expect to continue to satisfy the debt-to-net-worth coverage ratio; however, many factors beyond our reasonable control could affect our ability to comply with this provision in the future. The facility does not include any other financial restrictions, credit rating triggers (other than rating-dependent pricing), or any other provision that could require us to post collateral. The facility also includes a $125 million cross-default provision and a change-of-control provision. During the three and nine months ended September 30, 2017, we did not issue or repay any commercial paper, and at September 30, 2017, we had no commercial paper outstanding. Our revolving credit facility supports our outstanding commercial paper balances, and, unless we change the terms of our commercial paper program, our aggregate issuance of commercial paper will not exceed the amount of borrowings available under the facility. Shelf Registration Statement and Significant New Borrowings – In 2016, the Board of Directors reauthorized the issuance of up to $4.0 billion of debt securities. Under our shelf registration, we may issue, from time to time, any combination of debt securities, preferred stock, common stock, or warrants for debt securities or preferred stock in one or more offerings. During the nine months ended September 30, 2017, we issued the following unsecured, fixed-rate debt securities under our current shelf registration: Date Description of Securities April 5, 2017 $500 million of 3.000% Notes due April 15, 2027 $500 million of 4.000% Notes due April 15, 2047 September 19, 2017 $500 million of 3.600% Notes due September 15, 2037 $500 million of 4.100% Notes due September 15, 2067 We used the net proceeds from this offering for general corporate purposes, including the repurchase of common stock pursuant to our share repurchase program. These debt securities include change-of-control provisions. At September 30, 2017 , we had remaining authority to issue up to $1.55 billion of debt securities under our shelf registration. As of September 30, 2017, we reclassified as long-term debt $100 million of debt due within one year that we intend to refinance. This reclassification reflects our ability and intent to refinance any short-term borrowings and certain current maturities of long-term debt on a long-term basis. Receivables Securitization Facility – As of September 30, 2017, and December 31, 2016, we recorded $200 million and $0 , respectively, of borrowings under our Receivables Facility as secured debt. (See further discussion of our receivables securitization facility in Note 1 1 ). |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 16 . Variable Interest Entities We have entered into various lease transactions in which the structure of the leases contain variable interest entities (VIEs). These VIEs were created solely for the purpose of doing lease transactions (principally involving railroad equipment and facilities) and have no other activities, assets or liabilities outside of the lease transactions. Within these lease arrangements, we have the right to purchase some or all of the assets at fixed prices. Depending on market conditions, fixed-price purchase options available in the leases could potentially provide benefits to us; however, these benefits are not expected to be significant. We maintain and operate the assets based on contractual obligations within the lease arrangements, which set specific guidelines consistent within the railroad industry. As such, we have no control over activities that could materially impact the fair value of the leased assets. We do not hold the power to direct the activities of the VIEs and, therefore, do not control the ongoing activities that have a significant impact on the economic performance of the VIEs. Additionally, we do not have the obligation to absorb losses of the VIEs or the right to receive benefits of the VIEs that could potentially be significant to the VIEs. We are not considered to be the primary beneficiary and do not consolidate these VIEs because our actions and decisions do not have the most significant effect on the VIE’s performance and our fixed-price purchase options are not considered to be potentially significant to the VIEs. The future minimum lease payments associated with the VIE leases totaled $ 2.0 billion as of September 30, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | 17 . Commitments and Contingencies Asserted and Unasserted Claims – Various claims and lawsuits are pending against us and certain of our subsidiaries. We cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations, financial condition, or liquidity. To the extent possible, we have recorded a liability where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated. We do not expect that any known lawsuits, claims, environmental costs, commitments, contingent liabilities, or guarantees will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters. Personal Injury – The cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year. We use an actuarial analysis to measure the expense and liability, including unasserted claims. The Federal Employers’ Liability Act (FELA) governs compensation for work-related accidents. Under FELA, damages are assessed based on a finding of fault through litigation or out-of-court settlements. We offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work. Our personal injury liability is not discounted to present value due to the uncertainty surrounding the timing of future payments. Approximately 95% of the recorded liability is related to asserted claims and approximately 5% is related to unasserted claims at September 30, 2017. Because of the uncertainty surrounding the ultimate outcome of personal injury claims, it is reasonably possible that future costs to settle these claims may range from approximately $287 million to $313 million. We record an accrual at the low end of the range as no amount of loss within the range is more probable than any other. Estimates can vary over time due to evolving trends in litigation. Our personal injury liability activity was as follows : Millions, for the Nine Months Ended September 30, 2017 2016 Beginning balance $ 290 $ 318 Current year accruals 58 54 Changes in estimates for prior years (6) (30) Payments (55) (54) Ending balance at September 30 $ 287 $ 288 Current portion, ending balance at September 30 $ 69 $ 62 We have insurance coverage for a portion of the costs incurred to resolve personal injury-related claims, and we have recognized an asset for estimated insurance recoveries at September 30, 2017, and December 31, 2016. Any changes to recorded insurance recoveries are included in the above table in the Changes in estimates for prior years category. Asbestos – We are a defendant in a number of lawsuits in which current and former employees and other parties allege exposure to asbestos. We assess our potential liability using a statistical analysis of resolution costs for asbestos-related claims. This liability is updated annually and excludes future defense and processing costs. The liability for resolving both asserted and unasserted claims was based on the following assumptions: · The ratio of future claims by alleged disease would be consistent with historical averages adjusted for inflation. · The number of claims filed against us will decline each year. · The average settlement values for asserted and unasserted claims will be equivalent to historical averages. · The percentage of claims dismissed in the future will be equivalent to historical averages. Our liability for asbestos-related claims is not discounted to present value due to the uncertainty surrounding the timing of future payments. Approximately 19% of the recorded liability related to asserted claims and approximately 81% related to unasserted claims at September 30, 2017. Our asbestos-related liability activity was as follows: Millions, for the Nine Months Ended September 30, 2017 2016 Beginning balance $ 111 $ 120 Accruals - - Payments (10) (18) Ending balance at September 30 $ 101 $ 102 Current portion, ending balance at September 30 $ 8 $ 7 We have insurance coverage for a portion of the costs incurred to resolve asbestos-related claims, and we have recognized an asset for estimated insurance recoveries at September 30, 2017, and December 31, 2016. We believe that our estimates of liability for asbestos-related claims and insurance recoveries are reasonable and probable. The amounts recorded for asbestos-related liabilities and related insurance recoveries were based on currently known facts. However, future events, such as the number of new claims filed each year, average settlement costs, and insurance coverage issues, could cause the actual costs and insurance recoveries to be higher or lower than the projected amounts. Estimates also may vary in the future if strategies, activities, and outcomes of asbestos litigation materially change; federal and state laws governing asbestos litigation increase or decrease the probability or amount of compensation of claimants; and there are material changes with respect to payments made to claimants by other defendants. Environmental Costs – We are subject to federal, state, and local environmental laws and regulations. We have identified 317 sites at which we are or may be liable for remediation costs associated with alleged contamination or for violations of environmental requirements. This includes 33 sites that are the subject of actions taken by the U.S. government, 21 of which are currently on the Superfund National Priorities List. Certain federal legislation imposes joint and several liability for the remediation of identified sites; consequently, our ultimate environmental liability may include costs relating to activities of other parties, in addition to costs relating to our own activities at each site. When we identify an environmental issue with respect to property owned, leased, or otherwise used in our business, we perform, with assistance of our consultants, environmental assessments on the property. We expense the cost of the assessments as incurred. We accrue the cost of remediation where our obligation is probable and such costs can be reasonably estimated. Our environmental liability is not discounted to present value due to the uncertainty surrounding the timing of future payments. Our environmental liability activity was as follows: Millions, for the Nine Months Ended September 30, 2017 2016 Beginning balance $ 212 $ 190 Accruals 31 66 Payments (42) (48) Ending balance at September 30 $ 201 $ 208 Current portion, ending balance at September 30 $ 56 $ 54 The environmental liability includes future costs for remediation and restoration of sites, as well as ongoing monitoring costs, but excludes any anticipated recoveries from third parties. Cost estimates are based on information available for each site, financial viability of other potentially responsible parties, and existing technology, laws, and regulations. The ultimate liability for remediation is difficult to determine because of the number of potentially responsible parties, site-specific cost sharing arrangements with other potentially responsible parties, the degree of contamination by various wastes, the scarcity and quality of volumetric data related to many of the sites, and the speculative nature of remediation costs. Estimates of liability may vary over time due to changes in federal, state, and local laws governing environmental remediation. Current obligations are not expected to have a material adverse effect on our consolidated results of operations, financial condition, or liquidity. Insurance – The Company has a consolidated, wholly-owned captive insurance subsidiary (the captive), that provides insurance coverage for certain risks including FELA claims and property coverage which are subject to reinsurance. The captive entered into annual reinsurance treaty agreements that insure workers compensation, general liability, auto liability and FELA risk. The captive cedes a portion of its FELA exposure through the treaty and assumes a proportionate share of the entire risk. The captive receives direct premiums, which are netted against the Company’s premium costs in other expenses in the Condensed Consolidated Statements of Income. The treaty agreements provide for certain protections against the risk of treaty participants’ non-performance, and we do not believe our exposure to treaty participants’ non-performance is material at this time. In the event the Company leaves the reinsurance program, the Company is not relieved of its primary obligation to the policyholders for activity prior to the termination of the treaty agreements. We record both liabilities and reinsurance receivables using an actuarial analysis based on historical experience in our Condensed Consolidated Statements of Financial Position. Guarantees – At September 30 , 2017, and December 31, 2016, we were contingently liable for $33 million and $43 million in guarantees , respectively . The fair value of these obligations as of both September 30, 2017, and December 31, 2016 was $0 . We entered into these contingent guarantees in the normal course of business, and they include guaranteed obligations related to our affiliated operations. The final guarantee expires in 2022 . We are not aware of any existing event of default that would require us to satisfy these guarantees . We do not expect that these guarantees will have a material adverse effect on our consolidated financial condition, results of operations, or liquidity. Indemnities – We are contingently obligated under a variety of indemnification arrangements, although in some cases the extent of our potential liability is limited, depending on the nature of the transactions and the agreements. Due to uncertainty as to whether claims will be made or how they will be resolved, we cannot reasonably determine the probability of an adverse claim or reasonably estimate any adverse liability or the total maximum exposure under these indemnification arrangements. We do not have any reason to believe that we will be required to make any material payments under these indemnity provisions . Operating Leases – At September 30, 2017, we had commitments for future minimum lease payments under operating leases with initial or remaining non-cancelable lease terms in excess of one year of approximately $2.7 billion . |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Sep. 30, 2017 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 18. Share Repurchase Program Effective January 1, 2017, our Board of Directors authorized the repurchase of up to 120 million shares of our common stock by December 31, 2020 , replacing our previous repurchase program. As of September 30, 2017, we repurchased a total of $22.0 billion of our common stock since the commencement of our repurchase programs in 2007. The table below represents shares repurchased in the first three quarters of 2017 under our new repurchase program, and shares repurchased in the first three quarters of 2016 under our previous repurchase program. Number of Shares Purchased Average Price Paid 2017 2016 2017 2016 First quarter 7,531,300 9,315,807 $ 106.55 $ 76.49 Second quarter 7,788,283 7,026,100 109.10 85.66 Third quarter 11,801,755 9,088,613 106.69 93.63 Total 27,121,338 25,430,520 $ 107.34 $ 85.15 Remaining number of shares that may be repurchased under current authority 92,878,662 Management's assessments of market conditions and other pertinent factors guide the timing and volume of all repurchases. We expect to fund any share repurchases under this program through cash generated from operations, the sale or lease of various operating and non-operating properties, debt issuances, and cash on hand. Repurchased shares are recorded in treasury stock at cost, which includes any applicable commissions and fees. From October 1, 2017, through October 25, 2017, we repurchased 3.15 million shares at an aggregate cost of approximately $356 million. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2017 | |
Related Parties [Abstract] | |
Related Parties | 19 . Related Parties UPRR and other North American railroad companies jointly own TTX Company (TTX ). UPRR has a 36.79% economic and voting interest in TTX while the other North American railroads own the remaining interest. In accordance with ASC 323 Investments - Equity Method and Joint Venture , UPRR applies the equ ity method of accounting to our investment in TTX. TTX is a railcar pooling company that owns railcars and intermodal wells to serve North America’s railroads. TTX assists railroads in meeting the needs of their customers by providing railcars in an efficient, pooled environment. All railroads have the ability to utilize TTX railcars through car hire by renting railcars at stated rates. UPRR had $935 million and $877 million recognized as investments related to TTX in our Condensed Consolidated Statements of Financial Position as of September 30, 2017, and December 31, 2016, respectively. TTX car hire expenses of $100 million and $9 3 million for the three months ended September 30, 2017, and 2016, respectively, and $284 million and $275 million for the nine months ended September 30, 2017 and 2016, respectively, are included in equipment and other rents in our Condensed Consolidated Statements of Income. In addition, UPRR had accounts payable to TTX of $67 million and $61 million as of September 30, 2017, and December 31, 2016, respectively. |
Accounting Pronouncements (Tabl
Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Pronouncements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The retrospective impact of future adoption is shown in the table below: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Increase/(decrease) in operating income $ 61 $ (8) $ 49 $ (24) Increase/(decrease) in other income (61) 8 (49) 24 |
Workforce Reduction Plan (Table
Workforce Reduction Plan (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Workforce Reduction Plan [Table Text Block] | Millions Compensation and As of September 30, 2017 Benefits Expense Liability Pension $ 67 $ 67 Severance 12 12 Equity Compensation 5 5 Total $ 84 $ 84 |
Operations and Segmentation (Ta
Operations and Segmentation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Operations and Segmentation [Abstract] | |
Freight Revenue By Commodity Group | The following table provides freight revenue by commodity group: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Agricultural Products $ 914 $ 937 $ 2,763 $ 2,664 Automotive 469 485 1,486 1,483 Chemicals 896 875 2,679 2,617 Coal 711 728 1,978 1,741 Industrial Products 1,079 855 3,016 2,519 Intermodal 981 957 2,828 2,745 Total freight revenues $ 5,050 $ 4,837 $ 14,750 $ 13,769 Other revenues 358 337 1,040 1,004 Total operating revenues $ 5,408 $ 5,174 $ 15,790 $ 14,773 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock-based compensation [Abstract] | |
Stock-Based Compensation | Information regarding stock-based compensation appears in the table below: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Stock-based compensation, before tax: Stock options $ 6 $ 5 $ 15 $ 13 Retention awards 24 15 68 48 Total stock-based compensation, before tax $ 30 $ 20 $ 83 $ 61 Excess tax benefits from equity compensation plans $ 4 $ 5 $ 29 $ 21 |
Stock Options Weight Average Assumptions | The table below shows the annual weighted-average assumptions used for valuation purposes: Weighted-Average Assumptions 2017 2016 Risk-free interest rate 2.0% 1.3% Dividend yield 2.3% 2.9% Expected life (years) 5.3 5.1 Volatility 21.7% 23.2% Weighted-average grant-date fair value of options granted $ 18.19 $ 11.36 |
Stock Options Activity | A summary of stock option activity during the nine months ended September 30, 2017, is presented below: Options (thous.) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (millions) Outstanding at January 1, 2017 6,162 $ 73.13 5.9 yrs. $ 205 Granted 1,086 107.30 N/A N/A Exercised (648) 47.64 N/A N/A Forfeited or expired (90) 91.17 N/A N/A Outstanding at September 30, 2017 6,510 $ 81.12 6.0 yrs. $ 233 Vested or expected to vest at September 30, 2017 6,477 $ 80.98 6.0 yrs. $ 233 Options exercisable at September 30, 2017 4,118 $ 72.95 4.5 yrs. $ 181 |
Stock Option Exercises | Additional information regarding stock option exercises appears in the table below: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Intrinsic value of stock options exercised $ 10 $ 15 $ 40 $ 32 Cash received from option exercises 11 11 39 24 Treasury shares repurchased for employee payroll taxes (3) (4) (12) (9) Tax benefit realized from option exercises 4 5 15 12 Aggregate grant-date fair value of stock options vested - - 19 19 |
Retention Awards Activity | Changes in our retention awards during the nine months ended September 30, 2017, were as follows: Shares (thous.) Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2017 2,789 $ 84.68 Granted 562 107.30 Vested (801) 68.10 Forfeited (79) 92.82 Nonvested at September 30, 2017 2,471 $ 94.94 |
Performance Retention Awards Present Value Calculation Assumptions | The assumptions used to calculate the present value of estimated future dividends related to the February 2017 grant were as follows: 2017 Dividend per share per quarter $ 0.605 Risk-free interest rate at date of grant 1.5% |
Performance Based Units Activity | Changes in our performance retention awards during the nine months ended September 30, 2017, were as follows: Shares (thous.) Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2017 1,145 $ 86.23 Granted 461 101.38 Vested (255) 83.06 Unearned (110) 83.06 Forfeited (52) 92.20 Nonvested at September 30, 2017 1,189 $ 92.82 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Plans [Abstract] | |
Net Periodic Pension And OPEB Cost/(Benefit) | The components of our net periodic pension cost were as follows: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Service cost $ 21 $ 21 $ 66 $ 64 Interest cost 35 36 106 107 Expected return on plan assets (66) (67) (198) (201) Curtailment cost 20 - 20 - Special termination cost 47 - 47 - Amortization of actuarial loss 20 21 59 62 Net periodic pension cost $ 77 $ 11 $ 100 $ 32 The components of our net periodic OPEB cost were as follows: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Service cost $ - $ - $ 1 $ 1 Interest cost 3 2 8 8 Amortization of: Prior service credit - (2) - (7) Actuarial loss 2 2 7 7 Net periodic OPEB cost $ 5 $ 2 $ 16 $ 9 |
Other Income (Tables)
Other Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income [Abstract] | |
Other Income | Other income included the following: Three Months Ended Nine Months Ended September 30, September 30, Millions 2017 2016 2017 2016 Rental income [a] $ 89 $ 23 $ 152 $ 71 Net gain on non-operating asset dispositions [b] [c] 63 3 108 91 Interest income 4 3 10 8 Non-operating environmental costs and other (5) - (9) (18) Total $ 151 $ 29 $ 261 $ 152 [a] 2017 includes $65 million related to a favorable litigation settlement in the third quarter . [b] 2017 includes $26 million related to a real estate sale in the first quarter and $57 million related to a real estate sale in the third quarter. [c ] 2016 includes $17 million related to a real estate sale in the first quarter and $50 million related to a real estate sale in the second quarter. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table provides a reconciliation between basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, Millions, Except Per Share Amounts 2017 2016 2017 2016 Net income $ 1,194 $ 1,131 $ 3,434 $ 3,089 Weighted-average number of shares outstanding: Basic 794.5 829.0 803.4 836.8 Dilutive effect of stock options 1.7 1.6 1.7 1.4 Dilutive effect of retention shares and units 1.4 1.6 1.4 1.4 Diluted 797.6 832.2 806.5 839.6 Earnings per share – basic $ 1.50 $ 1.36 $ 4.27 $ 3.69 Earnings per share – diluted $ 1.50 $ 1.36 $ 4.26 $ 3.68 Stock options excluded as their inclusion would be anti-dilutive 1.9 0.9 1.8 2.4 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income/(Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income/(Loss) [Abstract] | |
After-Tax Components Of Accumulated Other Comprehensive Loss | Reclassifications out of accumulated other comprehensive income/(loss) for the three and nine months ended September 30, 2017, and 2016, were as follows (net of tax): Millions Defined benefit plans Foreign currency translation Total Balance at July 1, 2017 $ (1,106) $ (115) $ (1,221) Other comprehensive income/(loss) before reclassifications 3 9 12 Amounts reclassified from accumulated other comprehensive income/(loss) [a] 37 - 37 Net quarter-to-date other comprehensive income/(loss), net of taxes of $(27) million 40 9 49 Balance at September 30, 2017 $ (1,066) $ (106) $ (1,172) Balance at July 1, 2016 $ (1,082) $ (116) $ (1,198) Other comprehensive income/(loss) before reclassifications 1 (1) - Amounts reclassified from accumulated other comprehensive income/(loss) [a] 13 - 13 Net quarter-to-date other comprehensive income/(loss), net of taxes of $(7) million 14 (1) 13 Balance at September 30, 2016 $ (1,068) $ (117) $ (1,185) Millions Defined benefit plans Foreign currency translation Total Balance at January 1, 2017 $ (1,132) $ (140) $ (1,272) Other comprehensive income/(loss) before reclassifications 1 34 35 Amounts reclassified from accumulated other comprehensive income/(loss) [a] 65 - 65 Net year-to-date other comprehensive income/(loss), net of taxes of $(59) million 66 34 100 Balance at September 30, 2017 $ (1,066) $ (106) $ (1,172) Balance at January 1, 2016 $ (1,103) $ (92) $ (1,195) Other comprehensive income/(loss) before reclassifications (4) (25) (29) Amounts reclassified from accumulated other comprehensive income/(loss) [a] 39 - 39 Net year-to-date other comprehensive income/(loss), net of taxes of $(8) million 35 (25) 10 Balance at September 30, 2016 $ (1,068) $ (117) $ (1,185) [a] The accumulated other comprehensive income/(loss) reclassification components are 1) prior service cost/(credit) and 2) net actuarial loss which are both included in the computation of net p eriodic pension cost. See Note 6 Retirement Plans for additional details. |
Properties (Tables)
Properties (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Properties [Abstract] | |
Schedule Of Properties | The following tables list the major categories of property and equipment, as well as the weighted-average estimated useful life for each category (in years): Millions, Except Estimated Useful Life Accumulated Net Book Estimated As of September 30, 2017 Cost Depreciation Value Useful Life Land $ 5,228 $ N/A $ 5,228 N/A Road: Rail and other track material 16,226 5,869 10,357 43 Ties 10,084 2,863 7,221 33 Ballast 5,376 1,493 3,883 34 Other roadway [a] 18,732 3,420 15,312 47 Total road 50,418 13,645 36,773 N/A Equipment: Locomotives 9,309 3,606 5,703 20 Freight cars 2,254 980 1,274 24 Work equipment and other 939 263 676 19 Total equipment 12,502 4,849 7,653 N/A Technology and other 1,028 441 587 11 Construction in progress 795 - 795 N/A Total $ 69,971 $ 18,935 $ 51,036 N/A Millions, Except Estimated Useful Life Accumulated Net Book Estimated As of December 31, 2016 Cost Depreciation Value Useful Life Land $ 5,220 $ N/A $ 5,220 N/A Road: Rail and other track material 15,845 5,722 10,123 40 Ties 9,812 2,736 7,076 33 Ballast 5,242 1,430 3,812 34 Other roadway [a] 18,138 3,226 14,912 47 Total road 49,037 13,114 35,923 N/A Equipment: Locomotives 9,692 3,939 5,753 20 Freight cars 2,243 972 1,271 24 Work equipment and other 905 232 673 19 Total equipment 12,840 5,143 7,697 N/A Technology and other 974 412 562 11 Construction in progress 987 - 987 N/A Total $ 69,058 $ 18,669 $ 50,389 N/A [a] Other roadway includes grading, bridges and tunnels, signals, buildings, and other road assets. |
Accounts Payable And Other Cu38
Accounts Payable And Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounts Payable and Other Current Liabilties [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Sep. 30, Dec. 31, Millions 2017 2016 Accounts payable $ 838 $ 955 Income and other taxes payable 561 472 Accrued wages and vacation 384 387 Accrued casualty costs 203 185 Interest payable 179 212 Equipment rents payable 107 101 Other 656 570 Total accounts payable and other current liabilities $ 2,928 $ 2,882 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt [Abstract] | |
Unsecured Fixed Rate Debt Securities Issued Under Current Shelf Registration | During the nine months ended September 30, 2017, we issued the following unsecured, fixed-rate debt securities under our current shelf registration: Date Description of Securities April 5, 2017 $500 million of 3.000% Notes due April 15, 2027 $500 million of 4.000% Notes due April 15, 2047 September 19, 2017 $500 million of 3.600% Notes due September 15, 2037 $500 million of 4.100% Notes due September 15, 2067 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies Activity | Our personal injury liability activity was as follows: Millions, for the Nine Months Ended September 30, 2017 2016 Beginning balance $ 290 $ 318 Current year accruals 58 54 Changes in estimates for prior years (6) (30) Payments (55) (54) Ending balance at September 30 $ 287 $ 288 Current portion, ending balance at September 30 $ 69 $ 62 Our asbestos-related liability activity was as follows: Millions, for the Nine Months Ended September 30, 2017 2016 Beginning balance $ 111 $ 120 Accruals - - Payments (10) (18) Ending balance at September 30 $ 101 $ 102 Current portion, ending balance at September 30 $ 8 $ 7 Our environmental liability activity was as follows: Millions, for the Nine Months Ended September 30, 2017 2016 Beginning balance $ 212 $ 190 Accruals 31 66 Payments (42) (48) Ending balance at September 30 $ 201 $ 208 Current portion, ending balance at September 30 $ 56 $ 54 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | The table below represents shares repurchased in the first three quarters of 2017 under our new repurchase program, and shares repurchased in the first three quarters of 2016 under our previous repurchase program. Number of Shares Purchased Average Price Paid 2017 2016 2017 2016 First quarter 7,531,300 9,315,807 $ 106.55 $ 76.49 Second quarter 7,788,283 7,026,100 109.10 85.66 Third quarter 11,801,755 9,088,613 106.69 93.63 Total 27,121,338 25,430,520 $ 107.34 $ 85.15 Remaining number of shares that may be repurchased under current authority 92,878,662 |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restructuring Charges | $ 84 | |||
ASU 2017-07 [Member} | Operating Income (Loss) [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase/(decrease) in income | $ 61 | $ (8) | 49 | $ (24) |
ASU 2017-07 [Member} | Other Income [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase/(decrease) in income | (61) | $ 8 | (49) | $ 24 |
Pension. [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restructuring Charges | 67 | |||
Pension. [Member] | ASU 2017-07 [Member} | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restructuring Charges | $ 67 | $ 67 |
Workforce Reduction Plan (Detai
Workforce Reduction Plan (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($)employee | Sep. 30, 2017USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | ||
Compensation and benefits expense | $ 84 | |
Liability | $ 84 | $ 84 |
Agreement Positions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | employee | 150 | 150 |
Remaining number of positions to eliminate | employee | 100 | 100 |
Management Positions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | employee | 460 | 460 |
Pension. [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Compensation and benefits expense | $ 67 | |
Liability | $ 67 | 67 |
Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Compensation and benefits expense | 12 | |
Liability | 12 | 12 |
Equity Compensation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Compensation and benefits expense | 5 | |
Liability | $ 5 | $ 5 |
Operations and Segmentation (De
Operations and Segmentation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commodity Group Information [Line Items] | ||||
Freight revenues | $ 5,050 | $ 4,837 | $ 14,750 | $ 13,769 |
Other revenues | 358 | 337 | 1,040 | 1,004 |
Total operating revenues | 5,408 | 5,174 | 15,790 | 14,773 |
Agricultural Products [Member] | ||||
Commodity Group Information [Line Items] | ||||
Freight revenues | 914 | 937 | 2,763 | 2,664 |
Automotive [Member] | ||||
Commodity Group Information [Line Items] | ||||
Freight revenues | 469 | 485 | 1,486 | 1,483 |
Chemicals [Member] | ||||
Commodity Group Information [Line Items] | ||||
Freight revenues | 896 | 875 | 2,679 | 2,617 |
Coal [Member] | ||||
Commodity Group Information [Line Items] | ||||
Freight revenues | 711 | 728 | 1,978 | 1,741 |
Industrial Products [Member] | ||||
Commodity Group Information [Line Items] | ||||
Freight revenues | 1,079 | 855 | 3,016 | 2,519 |
Intermodal [Member] | ||||
Commodity Group Information [Line Items] | ||||
Freight revenues | 981 | 957 | 2,828 | 2,745 |
Mexico [Member] | ||||
Commodity Group Information [Line Items] | ||||
Freight revenues | $ 555 | $ 564 | $ 1,697 | $ 1,649 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Stock Options [Member] | |
Schedule of Share-based Compensation Arrangements [Line Items] | |
Contractual term | 10 years |
Years until vest | 3 years |
Stock options, subject to performance or market-based vesting conditions | 0 |
Unrecognized compensation expense | $ 22 |
Expected weighted average period (in years) of nonvested stock options to be recognized | 1 year 4 months 24 days |
Retention Awards [Member] | |
Schedule of Share-based Compensation Arrangements [Line Items] | |
Years until vest | 4 years |
Unrecognized compensation expense | $ 99 |
Expected weighted average period (in years) of nonvested stock options to be recognized | 1 year 9 months 18 days |
Performance Retention Awards [Member] | |
Schedule of Share-based Compensation Arrangements [Line Items] | |
Operating income growth modifier range | The modifier can be up to +/- 25% of the award earned based on the ROIC achieved. |
Requisite service period | 37 months |
Contractual terms of award | We expense the fair value of the units that are probable of being earned based on our forecasted ROIC over the 3-year performance period, and with respect to the third year of the 2016 and 2017 plans, the relative OIG modifier. |
ROIC performance period | 3 years |
Unrecognized compensation expense | $ 47 |
Expected weighted average period (in years) of nonvested stock options to be recognized | 1 year 9 months 18 days |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule Of Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-Based Compensation, Before Tax: [Abstract] | ||||
Stock options | $ 6 | $ 5 | $ 15 | $ 13 |
Retention awards | 24 | 15 | 68 | 48 |
Total stock-based compensation, before tax | 30 | 20 | 83 | 61 |
Excess tax benefits from equity compensation plans | $ 4 | $ 5 | $ 29 | $ 21 |
Stock-based Compensation (Sch47
Stock-based Compensation (Schedule of Stock Options Weight Average Assumptions) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Options [Member] | ||
Assumptions For Stock Awards [Abstract] | ||
Risk-free interest rate at date of grant | 2.00% | 1.30% |
Dividend yield | 2.30% | 2.90% |
Expected life (years) | 5 years 3 months 18 days | 5 years 1 month 6 days |
Volatility | 21.70% | 23.20% |
Weighted-average grant-date fair value of options granted | $ 18.19 | $ 11.36 |
Performance Retention Awards [Member] | ||
Assumptions For Stock Awards [Abstract] | ||
Dividend per share per quarter | $ 0.605 | |
Risk-free interest rate at date of grant | 1.50% |
Stock-based Compensation (Sch48
Stock-based Compensation (Schedule of Stock Option Activities) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Stock Options [Member] | ||
Stock Option Activity [Abstract] | ||
Stock options, shares outstanding at January 1, 2017 | 6,162 | |
Stock options, shares granted | 1,086 | |
Stock options, shares exercised | (648) | |
Stock options, shares forfeited or expired | (90) | |
Stock options, shares outstanding at September 30, 2017 | 6,510 | 6,162 |
Stock options, shares vested or expected to vest at September 30, 2017 | 6,477 | |
Stock options, shares exercisable at September 30, 2017 | 4,118 | |
Stock options weighted-average exercise price, outstanding at January 1, 2017 | $ 73.13 | |
Stock options weighted-average exercise price, granted | 107.30 | |
Stock options weighted-average exercise price, exercised | 47.64 | |
Stock options weighted-average exercise price, forfeited or expired | 91.17 | |
Stock options weighted-average exercise price, outstanding at September 30, 2017 | 81.12 | $ 73.13 |
Stock options weighted-average exercise price, vested or expected to vest at September 30, 2017 | 80.98 | |
Stock options weighted-average exercise price, options exercisable at September 30, 2017 | $ 72.95 | |
Stock options weighted-average remaining contractual term in years, outstanding at January 1, 2017 | 6 years | 5 years 10 months 24 days |
Stock options weighted-average remaining contractual term in years, outstanding at September 30, 2017 | 6 years | 5 years 10 months 24 days |
Stock options weighted-average remaining contractual term in years, vested or expected to vest at September 30, 2017 | 6 years | |
Stock options weighted-average remaining contractual term in years, options exercisable at September 30, 2017 | 4 years 6 months | |
Stock options aggregate intrinsic value, outstanding at January 1, 2017 | $ 205 | |
Stock options aggregate intrinsic value, outstanding at September 30, 2017 | 233 | $ 205 |
Stock options aggregate intrinsic value, vested or expected to vest at September 30, 2017 | 233 | |
Stock options aggregate intrinsic value, options exercisable at September 30, 2017 | $ 181 | |
Retention Awards [Member] | ||
Awards Activity [Abstract] | ||
Awards, shares nonvested at January 1, 2017 | 2,789 | |
Awards, shares granted | 562 | |
Awards, shares vested | (801) | |
Awards, shares forfeited | (79) | |
Awards, shares nonvested at September 30, 2017 | 2,471 | 2,789 |
Awards weighted-average grant-date fair value, nonvested at January 1, 2017 | $ 84.68 | |
Awards weighted-average grant-date fair value, granted | 107.30 | |
Awards weighted-average grant-date fair value, vested | 68.10 | |
Awards weighted-average grant-date fair value, forfeited | 92.82 | |
Awards weighted-average grant-date fair value, nonvested at September 30, 2017 | $ 94.94 | $ 84.68 |
Performance Retention Awards [Member] | ||
Awards Activity [Abstract] | ||
Awards, shares nonvested at January 1, 2017 | 1,145 | |
Awards, shares granted | 461 | |
Awards, shares vested | (255) | |
Awards, shares unearned | (110) | |
Awards, shares forfeited | (52) | |
Awards, shares nonvested at September 30, 2017 | 1,189 | 1,145 |
Awards weighted-average grant-date fair value, nonvested at January 1, 2017 | $ 86.23 | |
Awards weighted-average grant-date fair value, granted | 101.38 | |
Awards weighted-average grant-date fair value, vested | 83.06 | |
Awards weighted-average grant-date fair value, unearned | 83.06 | |
Awards weighted-average grant-date fair value, forfeited | 92.20 | |
Awards weighted-average grant-date fair value, nonvested at September 30, 2017 | $ 92.82 | $ 86.23 |
Stock-based Compensation (Sch49
Stock-based Compensation (Schedule of Stock Option Exercises) (Details) - Stock Options [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Option Aggregate Disclosures [Abstract] | ||||
Intrinsic value of stock options exercised | $ 10 | $ 15 | $ 40 | $ 32 |
Cash received from option exercises | 11 | 11 | 39 | 24 |
Treasury shares repurchased for employee payroll taxes | (3) | (4) | (12) | (9) |
Tax benefit realized from option exercises | 4 | 5 | 15 | 12 |
Aggregate grant-date fair value of stock options vested | $ 19 | $ 19 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017USD ($)employee | Sep. 30, 2017USD ($)employee | Dec. 31, 2016 | |
Retirement Plans [Line Items] | |||
Discount rate - benefit obligations | 3.81% | 3.81% | 4.20% |
Management Positions [Member] | |||
Retirement Plans [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 460 | 460 | |
Pension [Member] | |||
Retirement Plans [Line Items] | |||
Curtailment cost | $ 20 | $ 20 | |
Special termination cost | $ 47 | $ 47 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Periodic Pension And OPEB Cost [Abstract] | ||||
Changes in fair value | 5 years | |||
Pension [Member] | ||||
Net Periodic Pension And OPEB Cost [Abstract] | ||||
Service cost | $ 21,000,000 | $ 21,000,000 | $ 66,000,000 | $ 64,000,000 |
Interest cost | 35,000,000 | 36,000,000 | 106,000,000 | 107,000,000 |
Expected return on plan assets | (66,000,000) | (67,000,000) | (198,000,000) | (201,000,000) |
Curtailment cost | 20,000,000 | 20,000,000 | ||
Special termination cost | 47,000,000 | 47,000,000 | ||
Amortization of actuarial loss | 20,000,000 | 21,000,000 | 59,000,000 | 62,000,000 |
Net periodic cost | 77,000,000 | 11,000,000 | 100,000,000 | 32,000,000 |
Voluntary cash contributions to qualified pension plan | 0 | |||
OPEB [Member] | ||||
Net Periodic Pension And OPEB Cost [Abstract] | ||||
Service cost | 1,000,000 | 1,000,000 | ||
Interest cost | 3,000,000 | 2,000,000 | 8,000,000 | 8,000,000 |
Amortization of prior service credit | (2,000,000) | (7,000,000) | ||
Amortization of actuarial loss | 2,000,000 | 2,000,000 | 7,000,000 | 7,000,000 |
Net periodic cost | $ 5,000,000 | $ 2,000,000 | $ 16,000,000 | $ 9,000,000 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Other Income [Abstract] | ||||||||
Rental income | [1] | $ 89 | $ 23 | $ 152 | $ 71 | |||
Net gain on non-operating asset dispositions. | [2],[3] | 63 | 3 | 108 | 91 | |||
Interest Income | 4 | 3 | 10 | 8 | ||||
Non-operating environmental costs and other | (5) | (9) | (18) | |||||
Total | 151 | $ 29 | $ 261 | $ 152 | ||||
Gain (Loss) Related to Litigation Settlement | 65 | |||||||
Real estate sale | $ 57 | $ 26 | $ 50 | $ 17 | ||||
[1] | 2017 includes $65 million related to a favorable litigation settlement in the third quarter. | |||||||
[2] | 2016 includes $17 million related to a real estate sale in the first quarter and $50 million related to a real estate sale in the second quarter. | |||||||
[3] | 2017 includes $26 million related to a real estate sale in the first quarter and $57 million related to a real estate sale in the third quarter. |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Unrecognized Tax Benefits [Abstract] | |
Net unrecognized tax benefit liability | $ 170 |
Increase in Deferred Tax Expense [Abstract] | |
Increase in deferred tax expense for increased tax rate | 33 |
Taxes And Interest - Income Taxes [Abstract] | |
Income tax examination refund | 62 |
Income tax examination interest refund from settlement with taxing authority | 2 |
Income tax examination tax refund from settlement with taxing authority | $ 60 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share Details [Abstract] | ||||
Net income | $ 1,194 | $ 1,131 | $ 3,434 | $ 3,089 |
Weighted-Average Number Of Shares Outstanding | ||||
Basic | 794.5 | 829 | 803.4 | 836.8 |
Dilutive effect of stock options | 1.7 | 1.6 | 1.7 | 1.4 |
Dilutive effect of retention shares and units | 1.4 | 1.6 | 1.4 | 1.4 |
Diluted | 797.6 | 832.2 | 806.5 | 839.6 |
Earnings per share - basic | $ 1.50 | $ 1.36 | $ 4.27 | $ 3.69 |
Earnings per share - diluted | $ 1.50 | $ 1.36 | $ 4.26 | $ 3.68 |
Stock options excluded as their inclusion would be anti-dilutive | 1.9 | 0.9 | 1.8 | 2.4 |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Beginning balance | $ (1,221) | $ (1,198) | $ (1,272) | $ (1,195) | |||||
Other comprehensive income/(loss) before reclassifications | 12 | 35 | (29) | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | [1] | 37 | 13 | 65 | 39 | ||||
Net to-date other comprehensive income/(loss), net of taxes | 49 | [2] | 13 | [2] | 100 | [3] | 10 | [3] | |
Balance at September 30 | (1,172) | (1,185) | (1,172) | (1,185) | |||||
Deferred taxes activity other comprehensive income/(loss) | (27) | (7) | (59) | (8) | |||||
Defined Benefit Plans [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Beginning balance | (1,106) | (1,082) | (1,132) | (1,103) | |||||
Other comprehensive income/(loss) before reclassifications | 3 | 1 | 1 | (4) | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) | [1] | 37 | 13 | 65 | 39 | ||||
Net to-date other comprehensive income/(loss), net of taxes | 40 | 14 | 66 | 35 | |||||
Balance at September 30 | (1,066) | (1,068) | (1,066) | (1,068) | |||||
Foreign Currency Translation [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Beginning balance | (115) | (116) | (140) | (92) | |||||
Other comprehensive income/(loss) before reclassifications | 9 | (1) | 34 | (25) | |||||
Amounts reclassified from accumulated other comprehensive income/(loss) | |||||||||
Net to-date other comprehensive income/(loss), net of taxes | 9 | (1) | 34 | (25) | |||||
Balance at September 30 | $ (106) | $ (117) | $ (106) | $ (117) | |||||
[1] | The accumulated other comprehensive income/(loss) reclassification components are 1) prior service cost/(credit) and 2) net actuarial loss which are both included in the computation of net periodic pension cost. See Note 6 Retirement Plans for additional details. | ||||||||
[2] | Net of deferred taxes of $(27) million and $(7) million during the three months ended September 30, 2017, and 2016, respectively. | ||||||||
[3] | Net of deferred taxes of $(59) million and $(8) million during the nine months ended September 30, 2017, and 2016, respectively. |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accounts Receivable Details [Abstract] | |||||
Allowance for doubtful accounts | $ 2 | $ 2 | $ 5 | ||
Allowance for doubtful accounts - receivables not expected to be collected in one year | 17 | 17 | 17 | ||
Receivables Securitization Facility [Abstract] | |||||
Total capacity to transfer undivided interests to investors under the receivables securitization facility | 650 | $ 650 | |||
Receivables securitization facility maturity date | 2019-07 | ||||
Receivables securitization facility duration | 3 years | ||||
Value of the outstanding undivided interest held by investors under the receivables securitization facility | 200 | $ 200 | 0 | ||
Accounts receivable supporting the undivided interest held by investors | 1,100 | 1,100 | $ 1,000 | ||
Cost of the receivables securitization facility - interest expense | $ 1 | $ 2 | $ 4 | $ 5 |
Properties (Details)
Properties (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 69,971 | $ 69,058 | |
Accumulated depreciation | 18,935 | 18,669 | |
Net book value | 51,036 | 50,389 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 5,228 | 5,220 | |
Net book value | 5,228 | 5,220 | |
Road: Rail and Other Track Material [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 16,226 | 15,845 | |
Accumulated depreciation | 5,869 | 5,722 | |
Net book value | $ 10,357 | $ 10,123 | |
Estimated useful life | 43 years | 40 years | |
Road: Ties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 10,084 | $ 9,812 | |
Accumulated depreciation | 2,863 | 2,736 | |
Net book value | $ 7,221 | $ 7,076 | |
Estimated useful life | 33 years | 33 years | |
Road: Ballast [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 5,376 | $ 5,242 | |
Accumulated depreciation | 1,493 | 1,430 | |
Net book value | $ 3,883 | $ 3,812 | |
Estimated useful life | 34 years | 34 years | |
Road: Other Roadway [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | [1] | $ 18,732 | $ 18,138 |
Accumulated depreciation | [1] | 3,420 | 3,226 |
Net book value | [1] | $ 15,312 | $ 14,912 |
Estimated useful life | [1] | 47 years | 47 years |
Total Road [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 50,418 | $ 49,037 | |
Accumulated depreciation | 13,645 | 13,114 | |
Net book value | 36,773 | 35,923 | |
Equipment: Locomotives [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 9,309 | 9,692 | |
Accumulated depreciation | 3,606 | 3,939 | |
Net book value | $ 5,703 | $ 5,753 | |
Estimated useful life | 20 years | 20 years | |
Equipment: Freight Cars [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 2,254 | $ 2,243 | |
Accumulated depreciation | 980 | 972 | |
Net book value | $ 1,274 | $ 1,271 | |
Estimated useful life | 24 years | 24 years | |
Equipment: Work Equipment and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 939 | $ 905 | |
Accumulated depreciation | 263 | 232 | |
Net book value | $ 676 | $ 673 | |
Estimated useful life | 19 years | 19 years | |
Total Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 12,502 | $ 12,840 | |
Accumulated depreciation | 4,849 | 5,143 | |
Net book value | 7,653 | 7,697 | |
Technology and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 1,028 | 974 | |
Accumulated depreciation | 441 | 412 | |
Net book value | $ 587 | $ 562 | |
Estimated useful life | 11 years | 11 years | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 795 | $ 987 | |
Net book value | $ 795 | $ 987 | |
[1] | Other roadway includes grading, bridges and tunnels, signals, buildings, and other road assets. |
Accounts Payable And Other Cu58
Accounts Payable And Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts Payable and Other Current Liabilities Details [Abstract] | ||
Accounts payable | $ 838 | $ 955 |
Income and other taxes payable | 561 | 472 |
Accrued wages and vacation | 384 | 387 |
Accrued casualty costs | 203 | 185 |
Interest payable | 179 | 212 |
Equipment rents payable | 107 | 101 |
Other | 656 | 570 |
Total accounts payable and other current liabilities | $ 2,928 | $ 2,882 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Short-Term Investments [Abstract] | ||
Short-term investments | $ 90,000,000 | $ 60,000,000 |
Transfers out of level 2 | 0 | |
Fair Value of Debt Instruments [Abstract] | ||
Fair value of total debt | 18,000,000,000 | 15,900,000,000 |
Fair value of total debt in excess of carrying value | 1,200,000,000 | 900,000,000 |
Fixed rate debt securities containing call provisions | 155,000,000 | $ 155,000,000 |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | ||
Short-Term Investments [Abstract] | ||
Short-term investments | $ 90,000,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Jul. 28, 2016 | |
Debt Instrument [Line Items] | ||||
Board of Directors authorized debt issuance | $ 4,000,000,000 | |||
Board of Directors remaining debt issuance | $ 1,550,000,000 | $ 1,550,000,000 | ||
Debt reclassified as long-term | 100,000,000 | 100,000,000 | ||
Secured debt under receivables securitization facility | 200,000,000 | 200,000,000 | $ 0 | |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility available credit | 1,700,000,000 | $ 1,700,000,000 | ||
Facility expiration date | May 25, 2019 | |||
Credit facility term | 5 years | |||
Revolving credit facility withdrawals | 0 | $ 0 | ||
Allowable debt per debt-to-net-worth coverage ratio (as defined in the facility) | 38,300,000,000 | 38,300,000,000 | ||
Outstanding debt (as defined by facility) | 16,900,000,000 | 16,900,000,000 | ||
Cross-default provision (as defined by facility) | 125,000,000 | 125,000,000 | ||
Commercial paper issued | 0 | 0 | ||
Commercial paper repaid | 0 | 0 | ||
Commercial paper outstanding | $ 0 | $ 0 |
Debt (Unsecured Fixed Rate Debt
Debt (Unsecured Fixed Rate Debt Securities Issued Under Current Shelf Registration) (Details) - Unsecured Debt [Member] - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 19, 2017 | Apr. 05, 2017 | |
4.100% Notes Due 2067 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Sep. 19, 2017 | ||
Note amount | $ 500,000,000 | ||
Interest rate on note | 4.10% | ||
Maturity date on new borrowing | Sep. 15, 2067 | ||
3.600% Notes Due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Sep. 19, 2017 | ||
Note amount | $ 500,000,000 | ||
Interest rate on note | 3.60% | ||
Maturity date on new borrowing | Sep. 15, 2037 | ||
3.000% Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Apr. 5, 2017 | ||
Note amount | $ 500,000,000 | ||
Interest rate on note | 3.00% | ||
Maturity date on new borrowing | Apr. 15, 2027 | ||
4.000% Notes Due 2047 [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Apr. 5, 2017 | ||
Note amount | $ 500,000,000 | ||
Interest rate on note | 4.00% | ||
Maturity date on new borrowing | Apr. 15, 2047 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Billions | Sep. 30, 2017USD ($) |
Future minimum lease payments | $ 2.7 |
Variable Interest Entity (VIEs) [Member] | |
Future minimum lease payments | $ 2 |
Commitments And Contingencies63
Commitments And Contingencies (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2017USD ($)item | Dec. 31, 2016USD ($) | |
Commitments and Contingencies [Line Items] | ||
Sites identified which we are or may be liable for remediation costs | item | 317 | |
Sites subject of actions taken by the U.S. government | item | 33 | |
Sites on the Superfund National Priorities List | item | 21 | |
Future minimum lease payments | $ 2,700,000,000 | |
Personal Injury [Member] | ||
Commitments and Contingencies [Line Items] | ||
Percent of liability recorded related to asserted claims | 95.00% | |
Percent of liability recorded related to unasserted claims | 5.00% | |
Personal Injury [Member] | Minimum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Reasonably possible outcome of related claims | $ 287,000,000 | |
Personal Injury [Member] | Maximum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Reasonably possible outcome of related claims | $ 313,000,000 | |
Asbestos [Member] | ||
Commitments and Contingencies [Line Items] | ||
Percent of liability recorded related to asserted claims | 19.00% | |
Percent of liability recorded related to unasserted claims | 81.00% | |
Guarantees [Member] | ||
Commitments and Contingencies [Line Items] | ||
Maximum potential amount of guarantee payments | $ 33,000,000 | $ 43,000,000 |
Recorded liability for fair value of guarantees | $ 0 | $ 0 |
Expiration year of final guarantee | The final guarantee expires in 2022 |
Commitments And Contingencies64
Commitments And Contingencies (Commitments And Contingencies Activity) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Liability Activity [Abstract] | ||
Current portion, ending balance at September 30 | $ 203 | |
Environmental [Abstract] | ||
Beginning balance. | 212 | $ 190 |
Accruals | 31 | 66 |
Payments | (42) | (48) |
Ending balance at September 30. | 201 | 208 |
Current portion, ending balance at September 30. | 56 | 54 |
Personal Injury [Member] | ||
Liability Activity [Abstract] | ||
Beginning balance | 290 | 318 |
Current year accruals | 58 | 54 |
Changes in estimates for prior years | (6) | (30) |
Payments | (55) | (54) |
Ending balance at September 30 | 287 | 288 |
Current portion, ending balance at September 30 | 69 | 62 |
Asbestos [Member] | ||
Liability Activity [Abstract] | ||
Beginning balance | 111 | 120 |
Current year accruals | ||
Payments | (10) | (18) |
Ending balance at September 30 | 101 | 102 |
Current portion, ending balance at September 30 | $ 8 | $ 7 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 129 Months Ended | |||||||
Oct. 25, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Jan. 01, 2017 | |
Shares Repurchased [Line Items] | |||||||||||
BOD authorized | 120,000,000 | ||||||||||
Stock repurchase program expiration date | Dec. 31, 2020 | ||||||||||
Aggregate cost | $ 2,911 | $ 2,165 | $ 22,000 | ||||||||
Shares repurchased | 11,801,755 | 7,788,283 | 7,531,300 | 9,088,613 | 7,026,100 | 9,315,807 | 27,121,338 | 25,430,520 | |||
Average purchase price | $ 106.69 | $ 109.10 | $ 106.55 | $ 93.63 | $ 85.66 | $ 76.49 | $ 107.34 | $ 85.15 | |||
Remaining number of shares that may be repurchased under current authority | 92,878,662 | 92,878,662 | 92,878,662 | ||||||||
Subsequent Event [Member] | |||||||||||
Shares Repurchased [Line Items] | |||||||||||
Aggregate cost | $ 356 | ||||||||||
Shares repurchased | 3,150,000 |
Related Parties (Details)
Related Parties (Details) - TTX Company [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 36.79% | 36.79% | |||
Equity Method Investments | $ 935 | $ 935 | $ 877 | ||
Related Party Transaction, Expenses from Transactions with Related Party | 100 | $ 93 | 284 | $ 275 | |
Accounts Payable, Related Parties, Current | $ 67 | $ 67 | $ 61 |