Union Pacific 2001 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2001 Union Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

49
At December 31, 2001 and 2000, $37 million and $30 million, respectively of the total pension and other post-
retirement liability were classified as a current liability.
Amounts recognized for the benefit plan liabilities in the Consolidated Statements of Financial Position for December
31, 2001 and 2000 consisted of:
Pension
Other Postretirement
Benefits
Millions of Dollars 2001 2000 2001 2000
Prepaid benefit cost..................................................................................... $ 5 $ 4 $ - $ -
Accrued benefit cost.................................................................................... (343) (283) (500) (496)
Additional minimum liability.................................................................... (33) (30) - -
Intangible assets.......................................................................................... 22 27 - -
Accumulated other comprehensive income.............................................. 11 3 - -
Net liability recognized at end of year........................................................ $(338) $(279) $(500) $(496)
The components of the Corporation’s net periodic pension costs (income) for the years ended December 31, 2001,
2000 and 1999 were as follows:
Pension
Other Postretirement
Benefits
Millions of Dollars 2001 2000 1999 2001 2000 1999
Service cost................................................................... $ 47 $ 38 $ 46 $ 9 $ 7 $ 7
Interest cost.................................................................. 158 150 135 36 32 29
Expected return on assets............................................ (213) (197) (158) - - -
Amortization of:
Transition obligation.............................................. (4) (3) (4) - - -
Prior service cost (credit)....................................... 17 16 15 (3) (5) (7)
Actuarial loss (gain)................................................ (28) (31) (9) 1 (3) (1)
Total net periodic benefit cost (income) ................ $ (23) $ (27) $ 25 $43 $31 $28
At December 31, 2001 and 2000, approximately 32% of the funded plans’ assets each year were held in fixed-income
and short-term securities, with the remainder in equity securities.
The weighted-average actuarial assumptions for the years ended December 31, 2001, 2000 and 1999 were as follows:
Pension
Other Postretirement
Benefits
Percentages 2001 2000 1999 2001 2000 1999
Discount rate................................................................. 7.25% 7.50% 8.00% 7.25% 7.50% 8.00%
Expected return on plan assets..................................... 10.0 10.0 10.0 N/A N/A N/A
Rate of compensation increase..................................... 4.25 4.50 5.00 4.25 4.50 5.00
Health care cost trend:
Current..................................................................... N/A N/A N/A 7.70 7.70 7.70
Level in 2006............................................................. N/A N/A N/A 5.50 5.50 5.50