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Union Pacific Corp (NYSE:UNP)
Cash Flow from Operations
$7,682 Mil (TTM As of Mar. 2015)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Mar. 2015, Union Pacific Corp's Net Income From Continuing Operations was $1,151 Mil. Its DDA was $491 Mil. Its Change In Working Capital was $282 Mil. Its cash flow from deferred tax was $108 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $32 Mil. In all, Union Pacific Corp's Cash Flow from Operations for the three months ended in Mar. 2015 was $2,064 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Union Pacific Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Union Pacific Corp's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

Union Pacific Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 1454 (Jun. 2014 ) + 2137 (Sep. 2014 ) + 2027 (Dec. 2014 ) + 2064 (Mar. 2015 ) = $7,682 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Union Pacific Corp's net income from continuing operations for the three months ended in Mar. 2015 was $1,151 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Union Pacific Corp's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $491 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Union Pacific Corp's change in working capital for the three months ended in Mar. 2015 was $282 Mil. It means Union Pacific Corp's working capital increased by $282 Mil from Dec. 2014 to Mar. 2015 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Union Pacific Corp's cash flow from deferred tax for the three months ended in Mar. 2015 was $108 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Union Pacific Corp's cash flow from discontinued operations for the three months ended in Mar. 2015 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Union Pacific Corp's stock based compensation for the three months ended in Mar. 2015 was $0 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Union Pacific Corp's cash flow from others for the three months ended in Mar. 2015 was $32 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Union Pacific Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 1,0261,6061,8552,3351,8902,7803,2923,9434,3885,180
CF_DDA 1,1751,2371,3211,3661,4271,4871,6171,7601,7771,904
ChangeInWorkingCapital 1511428-250-293-351276-269161-309
CF_DeferredTax 320235332545718672986887723895
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 213500000000
Cash Flow from Others -98-247-25948-538-483-298-160-226-285
Cash Flow from Operations 2,5952,8803,2774,0443,2044,1055,8736,1616,8237,385

Union Pacific Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations 1,0369571,1061,1511,1741,0881,2911,3701,4311,151
CF_DDA 453434438447458464470481489491
ChangeInWorkingCapital -3-5556-140300197-401106-211282
CF_DeferredTax 397184181272867580134606108
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -884-87-67-76-571446-28832
Cash Flow from Operations 1,7951,5241,6941,6631,9421,7671,4542,1372,0272,064
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