Union Pacific 2009 Annual Report Download - page 53

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The following tables present the key assumptions used to measure pension and OPEB expense for 2009
and the estimated impact on 2009 pension and OPEB expense relative to a change in those assumptions:
Assumptions Pension OPEB
Discount rate 6.25% 6.25%
Expected return on plan assets 8.00% N/A
Salary increase 3.50% N/A
Healthcare cost trend rate:
Pre-65 current N/A 7.50%
Pre-65 level in 2028 N/A 4.50%
Post-65 current N/A 9.10%
Post-65 level in 2028 N/A 4.50%
Sensitivities Increase in Expense
Millions of Dollars Pension OPEB
0.25% decrease in discount rate $ 6 $ 1
0.25% increase in salary scale $ 1 N/A
0.25% decrease in expected return on plan assets $ 5 N/A
1% increase in healthcare cost trend rate N/A $ 1
CAUTIONARY INFORMATION
Certain statements in this report, and statements in other reports or information filed or to be filed with
the SEC (as well as information included in oral statements or other written statements made or to be
made by us), are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the
Securities Exchange Act of 1934. These forward-looking statements and information include, without
limitation, (A) statements in the Chairman’s letter preceding Part I regarding future economic conditions,
our ability to participate in future economic growth and create value for our shareholders, and future
capital investments; statements regarding planned capital expenditures under the caption ̌2010 Capital
Expenditures̍ in Item 2 of Part I; statements regarding dividends in Item 5 and statements; and
information set forth under the captions “2010 Outlook” and “Liquidity and Capital Resources” in this
Item 7, and (B) any other statements or information in this report (including information incorporated
herein by reference) regarding: expectations as to financial performance, revenue growth and cost
savings; the time by which goals, targets, or objectives will be achieved; projections, predictions,
expectations, estimates, or forecasts as to our business, financial and operational results, future economic
performance, and general economic conditions; expectations as to operational or service performance or
improvements; expectations as to the effectiveness of steps taken or to be taken to improve operations
and/or service, including capital expenditures for infrastructure improvements and equipment
acquisitions, any strategic business acquisitions, and modifications to our transportation plans (including
statements set forth in Item 2 as to expectations related to our planned capital expenditures); expectations
as to existing or proposed new products and services; expectations as to the impact of any new regulatory
activities or legislation on our operations or financial results; estimates of costs relating to environmental
remediation and restoration; expectations that claims, litigation, environmental costs, commitments,
contingent liabilities, labor negotiations or agreements, or other matters will not have a material adverse
effect on our consolidated results of operations, financial condition, or liquidity and any other similar
expressions concerning matters that are not historical facts. Forward-looking statements may be
identified by their use of forward-looking terminology, such as “believes,” “expects,” “may,” “should,”