Union Pacific 2006 Annual Report Download - page 39

The following tables identify material obligations and commitments as of December 31, 2006:
Payments Due by Period
Contractual Obligations
Millions of Dollars Total 2007 2008 2009 2010 2011
After
2011
Debt [a] ............................. $ 9,102 $1,035 $ 880 $ 693 $ 606 $ 656 $ 5,232
Operating leases ....................... 5,457 624 546 498 456 419 2,914
Capital lease obligations [b] ............. 1,916 180 173 168 148 157 1,090
Purchase obligations [c] ................ 4,516 1,362 573 502 248 199 1,632
Other post retirement benefits [d] ........ 298 27 28 29 31 31 152
Total contractual obligations ............. $21,289 $3,228 $2,200 $1,890 $1,489 $1,462 $11,020
[a] Excludes capital lease obligations of $1,236 million, unamortized discount of $103 million, and market value adjustments of $14 million for
debt with qualifying hedges that are recorded as liabilities on the Consolidated Statements of Financial Position. Includes an interest
component of $3,441 million.
[b] Represents total obligations, including interest component of $680 million.
[c] Purchase obligations include locomotive maintenance contracts; purchase commitments for locomotives, ties, ballast, and track; and agreements
to purchase other goods and services.
[d] Includes estimated other postretirement, medical, and life insurance payments and payments made under the unfunded pension plan for the
next ten years. No amounts are included for funded pension as no contributions are currently required.
Amount of Commitment Expiration per Period
Other Commercial Commitments
Millions of Dollars Total 2007 2008 2009 2010 2011
After
2011
Credit facilities [a] ..................... $2,000 $ - $ - $1,000 $1,000 $ - $ -
Sale of receivables [b]................... 600 600---- -
Guarantees [c] ........................ 464 5 6 18 45 75 315
Standby letters of credit [d] .............. 37 12 25--- -
Total commercial commitments .......... $3,101 $617 $31 $1,018 $1,045 $75 $315
[a] None of the credit facilities were used as of December 31, 2006.
[b] $600 million of the sale of receivables program was utilized at December 31, 2006.
[c] Includes guaranteed obligations related to our headquarters building, equipment financings, and affiliated operations.
[d] None of the letters of credit were drawn upon as of December 31, 2006.
Off-Balance Sheet Arrangements
Sale of Receivables – The Railroad transfers most of its accounts receivable to Union Pacific Receivables, Inc.
(UPRI), a bankruptcy-remote subsidiary, as part of a sale of receivables facility. UPRI sells, without recourse on a
364-day revolving basis, an undivided interest in such accounts receivable to investors. The total capacity to sell
undivided interests to investors under the facility was $600 million at both December 31, 2006 and 2005. The
value of the outstanding undivided interest held by investors under the facility was $600 million at both
December 31, 2006 and 2005, respectively. The value of the outstanding undivided interest held by investors is not
included in our Consolidated Financial Statements. The value of the undivided interest held by investors was
supported by $1,158 million and $1,226 million of accounts receivable held by UPRI at December 31, 2006 and
2005, respectively. At December 31, 2006 and 2005, the value of the interest retained by UPRI was $558 million
and $626 million, respectively. This retained interest is included in accounts receivable in our Consolidated
Financial Statements. The interest sold to investors is sold at carrying value, which approximates fair value, and
there is no gain or loss recognized from the transaction.
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