Union Pacific 2001 Annual Report Download - page 89

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63
Exhibit 12
RATIO OF EARNINGS TO FIXED CHARGES
Union Pacific Corporation and Subsidiary Companies
Millions of Dollars, Except for Ratio 2001 2000 1999 1998 [a] [b] 1997
Earnings from continuing operations................ $ 966 $ 842 $ 783 $(633) $ 432
Undistributed equity earnings............................ (48) 24 (45) (44) (37)
Total................................................................. 918 866 738 (677) 395
Income taxes ....................................................... 567 468 419 (63) 244
Fixed charges:
Interest expense including
amortization of debt discount .................... 701 723 733 714 605
Portion of rentals representing an interest
factor ............................................................ 42 174 186 181 166
Total................................................................. 743 897 919 895 771
Earnings available for fixed charges ................... $2,228 $2,231 $2,076 $ 155 $1,410
Fixed charges as above........................................ $ 743 $ 897 $ 919 $ 895 $ 771
Ratio of earnings to fixed charges ...................... 3.0 2.5 2.3 0.2 1.8
[a] Excluding the impact of the one-time goodwill charge of $547 million pre- and after-tax in 1998, the ratio of earnings to fixed
charges would have been 0.8.
[b] 1998 earnings were inadequate to cover fixed charges by $740 million.