Union Pacific 2007 Annual Report Download - page 66

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Shelf Registration Statement and Significant New Borrowings – Our Board of Directors authorized the
issuance of up to $3 billion of debt securities pursuant to a new shelf registration statement, which became
effective on March 6, 2007, replacing the $500 million of authority remaining under our shelf registration filed
in December 2003. Under the current shelf registration, we may issue, from time to time, any combination of
debt securities, preferred stock, common stock, or warrants for debt securities or preferred stock in one or
more offerings.
We have issued the following unsecured, fixed-rate debt securities under our current shelf registration:
Date Description of Securities
Issued during 2007:
April 18, 2007................................................. $250 million of 5.65% Notes due May 1, 2017
April 18, 2007................................................. $250 million of 6.15% Debentures due May 1, 2037
August 24, 2007 ............................................. $500 million of 5.45% Notes due January 31, 2013
October 30, 2007............................................ $500 million of 5.75% Notes due November 15, 2017
Issued subsequent to 2007:
February 5, 2008 ............................................ $750 million of 5.70% Notes due August 15, 2018
The net proceeds from these offerings are for general corporate purposes, including the repurchase of
common stock pursuant to our share repurchase program. These debt securities include change-of-control
provisions. We have no immediate plans to issue equity securities; however, we will continue to explore
opportunities to replace existing debt or access capital through issuances of debt securities under our shelf
registration, and, therefore, we may issue additional debt securities at any time.
6. Leases
We lease certain locomotives, freight cars, and other property. The Consolidated Statement of Financial
Position as of December 31, 2007 and 2006 included $2,062 million, net of $887 million of amortization, and
$1,982 million, net of $800 million of amortization, respectively, for properties under capital leases. A charge
to income resulting from the amortization of assets recorded under capital leases is included within
depreciation expense in our Consolidated Statements of Income. Future minimum lease payments for
operating and capital leases with initial or remaining non-cancelable lease terms in excess of one year as of
December 31, 2007 were as follows:
Millions of Dollars
Operating
Leases
Capital
Leases
2008 ............................................................................................................................. $ 639 $ 181
2009 ............................................................................................................................. 600 179
2010 ............................................................................................................................. 554 160
2011 ............................................................................................................................. 522 165
2012 ............................................................................................................................. 417 106
Later Years................................................................................................................... 3,289 1,054
Total minimum lease payments ................................................................................ $6,021 $1,845
Amount representing interest.................................................................................... N/A (626)
Present value of minimum lease payments............................................................... N/A $1,219
Rent expense for operating leases with terms exceeding one month was $810 million in 2007, $798 million in
2006, and $728 million in 2005. When cash rental payments are not made on a straight-line basis, we