Union Pacific 2007 Annual Report Download - page 14

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10
other financing sources and reduce our credit ratings below investment grade, which would prohibit us from
utilizing our sale of receivables program and significantly increase the costs associated with issuing both
commercial paper and long-term debt.
We Are Dependent on Two Key Domestic Suppliers of Locomotives – Due to the capital intensive nature and
sophistication of locomotive equipment, potential new suppliers face high barriers to entry with respect to this
industry. Therefore, if one of these domestic suppliers discontinues manufacturing locomotives, we could
experience a significant cost increase and risk reduced availability of the locomotives that are necessary to our
operations.
We May Be Affected by Acts of Terrorism, War, or Risk of War – Our rail lines, facilities, and equipment,
including rail cars carrying hazardous materials, could be direct targets or indirect casualties of terrorist
attacks. Terrorist attacks, or other similar events, any government response thereto, and war or risk of war
may adversely affect our results of operations, financial condition, and liquidity. In addition, insurance
premiums for some or all of our current coverages could increase dramatically, or certain coverages may not
be available to us in the future.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
We employ a variety of assets in the management and operation of our rail business. Our rail network links 23
states in the western two-thirds of the U.S.