Union Pacific 2005 Annual Report Download - page 62

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Debt Maturities – The following table presents aggregate debt maturities as of December 31, 2005, excluding
market value adjustments.
Millions of Dollars
2006 ............................................................................... $ 656
2007 ............................................................................... 783
2008 ............................................................................... 681
2009 ............................................................................... 531
2010 ............................................................................... 452
Thereafter .......................................................................... 4,329
Total debt .......................................................................... $7,432
Debt Redemption – In May 2005, we redeemed approximately $113 million of 8.35% debentures with a maturity
date of May 1, 2025.
Mortgaged Properties – Equipment with a carrying value of approximately $3.0 billion and $3.3 billion at
December 31, 2005 and 2004, respectively, serves as collateral for capital leases and other types of equipment
obligations in accordance with the secured financing arrangements utilized to acquire such railroad equipment.
As a result of the merger of Missouri Pacific Railroad Company (MPRR) with and into UPRR on January 1,
1997, and pursuant to the underlying indentures for the MPRR mortgage bonds, UPRR must maintain the same
value of assets after the merger in order to comply with the security requirements of the mortgage bonds. As of
the merger date, the value of the MPRR assets that secured the mortgage bonds was approximately $6.0 billion. In
accordance with the terms on the indentures, this collateral value must be maintained during the entire term of
the mortgage bonds irrespective of the outstanding balance of such bonds.
Credit Facilities – On December 31, 2005, we had $2 billion in revolving credit facilities available, including $1
billion under a five-year facility expiring in March 2010 and $1 billion under a five-year facility expiring in March
2009 (collectively, the “facilities”). The facilities are designated for general corporate purposes and support the
issuance of commercial paper. Neither of the facilities were drawn as of December 31, 2005. The five-year facility
expiring in March 2010 replaced a $1 billion 364-day revolving credit facility that expired in March 2005, while
the five-year facility expiring in March 2009 was put in place in 2004 to replace a five-year revolving credit facility
that was due to expire in March 2005. Commitment fees and interest rates payable under the facilities are similar
to fees and rates available to comparably rated investment-grade borrowers. These facilities allow for borrowings
at floating (LIBOR-based) rates, plus a spread, depending upon our senior unsecured debt ratings. The facilities
require the maintenance of a minimum net worth and a debt to net worth coverage ratio. At December 31, 2005,
we were in compliance with these covenants. The facilities do not include any other financial restrictions, credit
rating triggers (other than rating-dependent pricing), or any other provision that could require the posting of
collateral.
In addition to our revolving credit facilities, we also had $150 million in uncommitted lines of credit that
were unused at December 31, 2005. We established two $75 million uncommitted lines of credit in May and July
2005, which will expire in May and July 2006, respectively.
At December 31, 2004, approximately $440 million of short-term borrowings that we intended to refinance
were reclassified as long-term debt. This reclassification reflected our ability and intent to refinance these short-
term borrowings and current maturities of long-term debt on a long-term basis. At December 31, 2005, we did
not reclassify any short-term debt to a long-term basis.
Dividend Restrictions – We are subject to certain restrictions related to the payment of cash dividends to our
shareholders due to minimum net worth requirements under the credit facilities referred to above. The amount of
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