Union Pacific 2009 Annual Report Download - page 42

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42
payables that were reclassified as part of our capital lease obligations. Capital lease obligations are
reported in our Consolidated Statements of Financial Position as debt.
On October 15, 2009, we entered into a capital lease agreement for 44 locomotives with a total equipment
cost of $100 million. The lessor purchased the 44 locomotives from the Corporation and subsequently
leased the locomotives back to the Railroad. These capital lease obligations are reported in our
Consolidated Statements of Financial Position as debt at December 31, 2009.
Off-Balance Sheet Arrangements, Contractual Obligations, and Commercial Commitments
As described in the notes to the Consolidated Financial Statements and as referenced in the tables below,
we have contractual obligations and commercial commitments that may affect our financial condition.
Based on our assessment of the underlying provisions and circumstances of our contractual obligations
and commercial commitments, including material sources of off-balance sheet and structured finance
arrangements, other than the risks that we and other similarly situated companies face with respect to the
condition of the capital markets (as described in Item 1A of Part II of this report), there is no known
trend, demand, commitment, event, or uncertainty that is reasonably likely to occur that would have a
material adverse effect on our consolidated results of operations, financial condition, or liquidity. In
addition, our commercial obligations, financings, and commitments are customary transactions that are
similar to those of other comparable corporations, particularly within the transportation industry.
The following tables identify material obligations and commitments as of December 31, 2009:
Payments Due by December 31,
Contractual Obligations After
Millions of Dollars Total 2010 2011 2012 2013 2014 2014 Other
Debt [a] $ 12,645
$
846 $ 896
$
1,104 $ 985
$
951
$
7,863 $-
Operating leases 5,312 576 570 488 425 352 2,901 -
Capital lease obligations [b] 2,975 290 292 247 256 267 1,623 -
Purchase obligations [c] 2,738 386 317 242 249 228 1,284 32
Other post retirement benefits [d] 435 41 42 43 43 44 222 -
Income tax contingenc ies [e] 61 1 - - - - - 60
Total contractual obligations $ 24,166
$
2,140 $ 2,117
$
2,124 $ 1,958
$
1,842
$
13,893 $ 92
[a]
E
xcludes capital lease obligations of $2,061 million, unamortized discount of $(110) million, and marke
t
value adjustments of $15 million for debt with qualifying hedges that are recorded as liabilities on th
e
Consolidated Statements of Financial Position. Includes an interest component of $4,763 million.
[b] Represents total obligations, including interest component of $914 million.
[c]
P
urchase obligations include locomotive maintenance contracts; purchase commitments for ties, ballast, an
d
rail; and agreements to purchase other goods and services. For amounts where we can not reasonably
estimate the year of settlement, they are reflected in the Other column.
[d]
I
ncludes estimated other post retirement, 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 n
o
contributions are currently required.
[e]
F
uture cash flows for income tax contingencies reflect the recorded liability for unrecognized tax benefits,
including interest and penalties, as of December 31, 2009. Where we can rea
s
onably estimate the years i
n
which these liabilities may be settled, this is shown in the table. For amounts where we can not reasonabl
y
estimate the year of settlement, they are reflected in the Other column.