Union Pacific 2009 Annual Report Download - page 88

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88
During 2009, we issued the following unsecured, fixed-rate debt securities under our current shelf
registration:
Date Description of Securities
February 20, 2009 $350 million of 5.125% Notes due February 15, 2014
February 20, 2009 $400 million of 6.125% Notes due February 15, 2020
The net proceeds from these offerings were for general corporate purposes, including the repurchase of
common stock pursuant to our share repurchase program. These debt securities include change-of-control
provisions.
We have no immediate plans to issue equity securities; however, we will continue to explore
opportunities to replace existing debt or access capital through issuances of debt securities under our shelf
registration, and, therefore, we may issue additional debt securities at any time. At December 31, 2009,
we had remaining authority from our Board of Directors to issue up to $2.25 billion of debt securities
under our shelf registration.
During the second quarter of 2009, we restructured lease agreements for 813 locomotives resulting in a
change in lease classification from operating to capital. As part of the restructuring arrangements, we
received $87 million in cash consideration. We recorded capital lease assets of approximately $742
million and related capital lease obligations totaling approximately $843 million. Included in our capital
lease obligations is the $87 million in cash consideration and $14 million of accrued operating lease
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.