Union Pacific 2009 Annual Report Download - page 39

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39
The tables below detail cash capital investments and track statistics for the years ended December 31,
2009, 2008, and 2007:
Millions of Dollars 2009 2008 2007
Rail and other track material
$
644 $ 646 $ 628
Ties 449 425 404
Ballast 208 243 206
Other [a] 354 386 355
Total road infrastructure replacements 1,655 1,700 1,593
Line expansion and other capacity projects 162 488 419
Commercial facilities 193 254 115
Total capacity and commercial facilities 355 742 534
Locomotives and freight cars 272 164 263
Technology and other 102 174 106
Total cash capital investments
$
2,384 $ 2,780 $ 2,496
[a] Other includes bridges and tunnels, signals, other road assets, and road work equipment.
2009 2008 2007
Track miles of rail replaced 841 810 877
Track miles of rail capacity expansion 62 118 79
New ties installed (thousands) 4,814 4,599 4,267
Miles of track surfaced 15,128 14,454 12,328
Capital Plan – In 2010, we expect our total capital investments to be approximately $2.5 billion, which
may be revised if business conditions or new laws or regulations affect our ability to generate sufficient
returns on these investments. We expect approximately 73% of our 2010 capital investments will replace
and improve existing capital assets. Major investment categories include replacing and improving track
infrastructure; increasing network and terminal capacity; improving locomotives and freight cars;
improving technology, including investing in PTC; and other capital projects. We expect to fund our 2010
cash capital investments through cash generated from operations, the sale or lease of various operating
and non-operating properties, issuance of long-term debt, and cash on hand at December 31, 2009. Our
annual capital plan is a critical component of our long-term strategic plan, which we expect will enhance
the long-term value of the Corporation for our shareholders by providing sufficient resources to (i)
replace and improve our existing track infrastructure to provide safe and fluid operations, (ii) increase
network efficiency by adding or improving facilities and track, and (iii) make investments that meet
customer demand and take advantage of opportunities for long-term growth.
Financing Activities
Cash used in financing activities decreased in 2009 versus 2008. During 2009 we did not repurchase any
shares under our common stock repurchase program, compared to $1.6 billion of repurchases in 2008.
Additionally, debt repayments were $337 million lower in 2009, partially offset by lower new debt
issuances of $1.4 billion and higher dividend payments (we increased our dividend from $0.22 per share
to its current level of $0.27 per share, effective in the third quarter of 2008). The restructuring of
equipment leases also generated $87 million in cash consideration, further contributing to the decrease
(see further discussion in this Item 7 under Liquidity and Capital Resources – Financing Activities). Cash