Union Pacific 2001 Annual Report Download - page 81

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55
15. Work Force Reduction Plan
Prompted by signs of an economic slowdown, the Corporation’s Board of Directors approved a work force reduction
plan (the Plan) in the fourth quarter of 2000. The Plan called for the elimination of approximately 2,000 Railroad
positions during 2001. In December 2001, the Plan was completed with positions eliminated through a combination of
subsidized early retirements, involuntary layoffs and attrition. The Plan affected both agreement and non-agreement
employees across the entire 23-state Railroad system. As of December 31, 2001, 2,021 positions had been eliminated in
accordance with the Plan. Of those eliminations, 1,051 were made through subsidized early retirements and involuntary
layoffs with the remaining coming through attrition.
The Corporation accrued $115 million pre-tax or $72 million after-tax in the fourth quarter of 2000 for costs related
to the Plan. The expense was charged to salaries, wages and employee benefits in the Corporation’s 2000 Consolidated
Statements of Income. Plan liability activity in 2001 includes $49 million paid in cash or reclassified to contractual
liabilities for severance benefits to 571 employees; $60 million of subsidized early retirement benefits covering 480
employees; with the remaining $6 million charged back against salaries, wages and employee benefits in the Corporation's
Consolidated Statements of Income.
16. Selected Quarterly Data
Selected unaudited quarterly data are as follows:
Millions of Dollars, Except Per Share Amounts
2001 Mar. 31 June 30 Sep. 30 Dec. 31
Operating revenues..................................................... $2,943 $2,998 $3,026 $3,006
Operating income........................................................ 439 494 574 565
Net income................................................................... 181 243 267 275
Per share - basic:
Net income.............................................................. 0.73 0.98 1.08 1.10
Per share - diluted:
Net income.............................................................. 0.72 0.95 1.04 1.06
2000 Mar. 31 June 30 Sep. 30 Dec. 31[a]
Operating revenues..................................................... $2,906 $2,966 $3,054 $2,952
Operating income........................................................ 452 542 570 339
Net income................................................................... 185 244 256 157
Per share - basic:
Net income.............................................................. 0.75 0.99 1.04 0.64
Per share - diluted:
Net income.............................................................. 0.74 0.96 1.00 0.63
[a] Included $115 million pre-tax ($72 million after-tax) work force reduction charge (see note 15).
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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.