Union Pacific 2001 Annual Report Download - page 80

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13. Other Income
Other income included the following:
Millions of Dollars 2001 2000 1999
Net gain on non-operating asset dispositions............................................................ $133 $ 88 $ 74
Rental income.............................................................................................................. 89 75 63
Interest Income............................................................................................................ 12 11 18
Other, net..................................................................................................................... (72) (44) (24)
Total............................................................................................................................. $162 $130 $131
14. Accounting Pronouncements
In September 2000, the FASB issued Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities” (FAS 140), replacing FASB No. 125, “Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities” (FAS 125). FAS 140 revises criteria for accounting for securitizations, other
financial asset transfers and collateral and introduces new disclosures. FAS 140 was effective for fiscal 2000 with respect
to the new disclosure requirements and amendments of the collateral provisions originally presented in FAS 125. All
other provisions were effective for transfers of financial assets and extinguishments of liabilities occurring after March
31, 2001. The provisions are to be applied prospectively with certain exceptions. The adoption of FAS 140 did not have
a significant impact on the Corporation's Consolidated Financial Statements.
In July 2001, the FASB issued Statement No. 141, "Business Combinations" (FAS 141). FAS 141 revises the method
of accounting for business combinations and eliminates the pooling method of accounting. FAS 141 was effective for
all business combinations that were initiated or completed after June 30, 2001. Management believes that FAS 141 will
not have a material impact on the Corporation's Consolidated Financial Statements.
Also in July 2001, the FASB issued Statement No. 142, "Goodwill and Other Intangible Assets" (FAS 142). FAS 142
revises the method of accounting for goodwill and other intangible assets. FAS 142 eliminates the amortization of
goodwill, but requires goodwill to be tested for impairment at least annually at a reporting unit level. FAS 142 is effective
for the Corporation's fiscal year beginning January 1, 2002. Management believes that FAS 142 will not have a material
impact on the Corporation's Consolidated Financial Statements. In accordance with FAS 142, the Corporation will
eliminate annual goodwill amortization of $2 million. At December 31, 2001, the Corporation had $50 million of
goodwill remaining.
In August 2001, the FASB issued Statement No. 143, "Accounting for Asset Retirement Obligations" (FAS 143). FAS
143 is effective for the Corporation's fiscal year beginning January 1, 2003, and requires the Corporation to record the
fair value of a liability for an asset retirement obligation in the period in which it is incurred. Management is in the
process of evaluating the impact this standard will have on the Corporation's Consolidated Financial Statements.
In addition, in October 2001, the FASB issued Statement No. 144, "Accounting for the Impairment of Disposal of
Long-Lived Assets" (FAS 144). FAS 144 replaces FASB Statement No. 121, "Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to Be Disposed of" (FAS 121). FAS 144 develops one accounting model, based
on the framework established in FAS 121, for long-lived assets to be disposed of by sale. The accounting model applies
to all long-lived assets, including discontinued operations, and it replaces the provisions of APB Opinion No. 30,
"Reporting Results of Operations-Reporting the Effects of Disposal of a Segment of a Business and Extraordinary, Unusual
and Infrequently Occurring Events and Transactions," for disposal of segments of a business. FAS 144 requires that long-
lived assets be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing
operations or in discontinued operations. FAS 144 also broadens the definition of discontinued operations. FAS 144 is
effective for the Corporation's fiscal year beginning January 1, 2002. Management believes that FAS 144 will not have
a material impact on the Corporation's Consolidated Financial Statements.