Union Pacific 2002 Annual Report Download - page 76

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5. Debt
Total debt as of December 31, 2002 and 2001, including interest rate swaps designated as hedges, is summarized below:
Millions of Dollars 2002 2001
Notes and debentures, 2.0% to 8.4% due through 2054 [a] ................................................. $4,744 $4,682
Capitalized leases, 5.4% to 12.8% due through 2024 ............................................................ 1,458 1,441
Medium-term notes, 6.3% to 10.0% due through 2020 [a].................................................. 704 736
Equipment obligations, 6.3% to 10.3% due through 2019 ................................................... 534 619
Term floating-rate debt............................................................................................................ - 300
Mortgage bonds, 4.3% to 4.8% due through 2030 ................................................................ 153 153
Tax-exempt financings, 3.3% to 5.7% due through 2026...................................................... 168 168
Commercial paper and bid notes, average of 2.9% in 2002 and 5.1% in 2001.................... - 34
Unamortized discount ............................................................................................................. (57) (53)
Total debt .................................................................................................................................. 7,704 8,080
Less current portion................................................................................................................. (276) (194)
Total long-term debt ................................................................................................................ $7,428 $7,886
[a] 2002 and 2001 includes a collective write-up of $52 million and $13 million, respectively, due to market value adjustments for debt with
qualifying hedges that are recorded as assets on the Consolidated Statements of Financial Position.
Debt Maturities – Aggregate debt maturities as of December 31, 2002, excluding market value adjustments, are as follows:
Millions of Dollars
2003.................................................................................................................................................................... $ 276
2004.................................................................................................................................................................... 673
2005.................................................................................................................................................................... 677
2006.................................................................................................................................................................... 658
2007.................................................................................................................................................................... 788
Thereafter........................................................................................................................................................... 4,580
Total debt ........................................................................................................................................................... $ 7,652
In January 2003, the Corporation called its $150 million 7-7/8% debentures due February 1, 2023, for redemption in
February 2003.
Mortgaged Properties – At December 31, 2002 and 2001, approximately $9.5 billion and $9.4 billion, respectively, of
Railroad properties secure outstanding equipment obligations and mortgage bonds.
Credit Facilities – The Corporation had no commercial paper borrowings outstanding as of December 31, 2002.
Commercial paper is issued from time to time for working capital needs and is supported by $1.875 billion in revolving
credit facilities, of which $875 million expires in March 2003, with the remaining $1.0 billion expiring in 2005. The credit
facility for $875 million includes $825 million that was entered into during March 2002 and $50 million entered into during
June 2002. The $1.0 billion credit facility was entered into during March 2000. The Corporation has the option to hold
higher cash balances in addition to or in replacement of the credit facilities to support commercial paper. These credit
facilities also allow for borrowings at floating (LIBOR-based) rates, plus a spread, depending upon the Corporation’s senior
unsecured debt ratings. The credit facilities are designated for general corporate purposes, and none of the credit facilities
were used as of December 31, 2002. Commitment fees and interest rates payable under the facilities are similar to fees and
rates available to comparably rated investment-grade borrowers. The Corporation is reviewing rollover options for the credit
facility that expires in March 2003. To the extent the Corporation has long-term credit facilities available, commercial paper
borrowings and other current maturities of long-term debt of $188 million and $674 million as of December 31, 2002 and
2001, respectively, have been reclassified as long-term debt maturing in the years 2004 and 2003, respectively. This
reclassification reflects the Corporation’s intent to refinance these short-term borrowings and current maturities of long-
term debt on a long-term basis through the issuance of additional commercial paper or new long-term financings, or by
using the currently available long-term credit facility if alternative financing is not available.