Union Pacific 2007 Annual Report Download - page 40

36
Contractual Obligations and Commitments
As described in the notes to the Consolidated Financial Statements and as referenced in the tables below, we
have contractual obligations and commercial commitments that may affect our financial condition. However,
based on our assessment of the underlying provisions and circumstances of our contractual obligations and
commercial commitments, 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 that would have a material adverse effect on our consolidated results of operations, financial
condition, or liquidity. In addition, our commercial obligations, financings, and commitments are customary
transactions that are similar to those of other comparable corporations, particularly within the transportation
industry.
The following tables identify material obligations and commitments as of December 31, 2007:
Payments Due by December 31,
Contractual Obligations
Millions of Dollars Total 2008 2009 2010 2011 2012
After
2012 Other
Debt [a] ............................................. $10,747 $ 974 $ 789 $ 701 $ 750 $ 944 $ 6,589 $ -
Operating leases ................................ 6,021 639 600 554 522 417 3,289 -
Capital lease obligations [b] ............. 1,845 181 179 160 165 106 1,054 -
Purchase obligations [c] ................... 3,927 991 649 279 244 223 1,541 -
Other post retirement benefits [d]... 396 39 40 41 41 41 194 -
Income tax contingencies [e] ........... 161 140 ---- -21
Total contractual obligations ........... $23,097 $2,964 $2,257 $1,735 $1,722 $1,731 $12,667 $21
[a] Excludes capital lease obligations of $1,219 million, unamortized discount of $(104) million, and market value adjustments of $2
million for debt with qualifying hedges that are recorded as liabilities on the Consolidated Statements of Financial Position.
Includes an interest component of $4,182 million.
[b] Represents total obligations, including interest component of $626 million.
[c] Purchase obligations include locomotive maintenance contracts; purchase commitments for locomotives, ties, ballast, and track; and
agreements to purchase other goods and services.
[d] Includes estimated other postretirement, medical, and life insurance payments and payments made under the unfunded pension plan
for the next ten years. No amounts are included for funded pension as no contributions are currently required.
[e] Future cash flows for income tax contingencies reflect the recorded liability, including interest and penalties, in accordance with FIN 48
as of December 31, 2007. Where we can reasonably estimate the years in which these liabilities may be settled, this is shown in the
table. For amounts where we can not reasonably estimate the year of settlement, they are reflected in the Other column.
Amount of Commitment Expiration per Period
Other Commercial Commitments
Millions of Dollars Total 2008 2009 2010 2011 2012
After
2012
Credit facilities [a] ....................................... $1,975 $ 75 $ - $ - $ - $1,900 $ -
Sale of receivables [b] .................................. 600 600 - - - - -
Guarantees [c].............................................. 465 15 19 46 76 22 287
Standby letters of credit [d]......................... 27 10 17 - - - -
Total commercial commitments................. $3,067 $700 $36 $46 $76 $1,922 $287
[a] The $75 million line of credit requires equivalent credit available under the revolving credit facility. None of the credit facilities
were used as of December 31, 2007.
[b] $600 million of the sale of receivables program was utilized at December 31, 2007.
[c] Includes guaranteed obligations related to our headquarters building, equipment financings, and affiliated operations.
[d] None of the letters of credit were drawn upon as of December 31, 2007.