Union Pacific 2001 Annual Report Download - page 48

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22
reduction plan. The increase from 1999 to 2000 reflects higher income from continuing operations and decreased cash
payouts in 2000 for merger-related expenses and customer claims.
Cash used in investing activities was $1.5 billion in 2001 and $1.6 billion in 2000 and 1999. The decrease from 2000
to 2001 is due to reduced capital spending and higher asset sales in 2001, partially offset by the receipt of cash dividends
in 2000.
Cash used in financing activities was $440 million, $486 million and $256 million in 2001, 2000 and 1999, respectively.
The decrease from 2000 to 2001 reflects higher debt and other financings in 2001 ($977 million in 2001 versus $509
million in 2000), partially offset by higher debt repayments ($1.2 billion in 2001 versus $796 million in 2000). The
increase from 1999 to 2000 reflects higher debt repayments ($796 million in 2000 versus $692 million in 1999) and lower
financings ($509 million in 2000 versus $634 million in 1999).
Including the convertible preferred securities (see note 7 to the Consolidated Financial Statements, Item 8) as an
equity instrument, the ratio of debt to total capital employed was 42.2%, 45.1% and 47.6% at December 31, 2001, 2000
and 1999, respectively.
Contractual Obligations and Commercial Commitments
As described in the notes to the Consolidated Financial Statements, Item 8, as referenced in the tables below, the
Corporation has contractual obligations and commercial commitments that may affect the financial condition of the
Corporation. However, based on management's assessment of the underlying provisions and circumstances of the
material contractual obligations and commercial commitments of the Corporation, including material sources of off-
balance sheet and structured finance arrangements, there is no known trend, demand, commitment, event or uncertainty
that is reasonably likely to occur which would have a material effect on the Corporation's financial condition or results
of operations. In addition, the commercial obligations, financings and commitments made by the Corporation are
customary transactions which are similar to those of other comparable industrial corporations, particularly within the
transportation industry.
The following tables identify material obligations and commitments as of December 31, 2001:
Payments Due by Period
Contractual Obligations
Millions of Dollars Total
Less Than
1 Year 2-3 Years 4-5 Years
After
5 Years
Debt (note 7)[a].......................................... $ 6,639 $ 94 $1,433 $1,175 $3,937
Operating leases (note 8)........................... 3,322 435 651 546 1,690
Capital lease obligations (note 8).............. 2,452 207 403 344 1,498
Unconditional purchase obligations
(note 12)[b] ........................................... 547 162 385 - -
Total contractual obligations .................... $12,960 $898 $2,872 $2,065 $7,125
[a] Excludes capital lease obligations of $1,441 million.
[b] Unconditional purchase obligations represent multi-year contractual commitments to purchase assets at fixed prices and fixed volumes. These
commitments are made in order to take advantage of pricing opportunities and to insure availability of assets to meet quality and operational
requirements. Excluded are annual contracts made in the normal course of business for performance of routine services, as well as commitments
where contract provisions allow for cancellation.