UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES COMPUTATION OF EARNINGS PER SHARE (Amounts in Thousands, Except Share and Per Share Amounts) (Unaudited) Six Months Ended June 30, 1997 1996 -------- -------- Average number of shares outstanding (a)...... 245,581 205,281 Average shares issuable on exercise of stock options less shares repurchasable from proceeds.................................... 2,273 1,147 -------- -------- Total average number of common and common equivalent shares........................... 247,854 206,428 ======== ======== Income from Continuing Operations............. $343,786 $292,824 Income from Discontinued Operations........... -- 107,094 -------- -------- Net Income.................................... $343,786 $399,918 ======== ======== Earnings per share: Income from Continuing Operations........... $ 1.39 $ 1.42 Income from Discontinued Operations......... -- 0.52 -------- -------- Net Income.................................. $ 1.39 $ 1.94 ======== ======== (a) The increase in the average number of shares outstanding resulted from the Corporation's issuance of approximately 38.1 million shares of UPC common stock in connection with the Southern Pacific acquisition. See Note 2 to the Condensed Consolidated Financial Statements.