EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES Union Pacific Corporation and Subsidiary Companies <Table> <Caption> Millions of Dollars, Except for Ratio 2002 2001 2000 1999 1998 - ------------------------------------- ---------- ---------- ---------- ---------- ---------- Earnings from continuing operations ...... $ 1,341 $ 966 $ 842 $ 783 $ (633) Undistributed equity (earnings) loss ..... (34) (48) 24 (45) (44) ---------- ---------- ---------- ---------- ---------- Total earnings ........................ 1,307 918 866 738 (677) ---------- ---------- ---------- ---------- ---------- Income taxes ............................. 675 567 468 419 (63) ---------- ---------- ---------- ---------- ---------- Fixed charges: Interest expense including amortization of debt discount ...... 633 701 723 733 714 Portion of rentals representing an interest factor ................. 44 42 174 186 181 ---------- ---------- ---------- ---------- ---------- Total fixed charges ................... 677 743 897 919 895 ---------- ---------- ---------- ---------- ---------- Earnings available for fixed charges ..... $ 2,659 $ 2,228 $ 2,231 $ 2,076 $ 155 ---------- ---------- ---------- ---------- ---------- Ratio of earnings to fixed charges ....... 3.9 3.0 2.5 2.3 --[a] ---------- ---------- ---------- ---------- ---------- </Table> [a] 1998 earnings were inadequate to cover fixed charges by $740 million.