Union Pacific 2010 Annual Report Download - page 36

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36
uncertain economic conditions. Historically, we have had a working capital deficit, which is common in our
industry and does not indicate a lack of liquidity. We maintain adequate resources and, when necessary,
have access to capital to meet any daily and short-term cash requirements, and we have sufficient
financial capacity to satisfy our current liabilities.
Cash Flows
Millions 2010 2009 2008
Cash provided by operating activities $ 4,105 $ 3,204 $ 4,044
Cash used in investing activities (2,488) (2,145) (2,738)
Cash used in financing activities (2,381) (458) (935)
Net change in cash and cash equivalents $ (764) $ 601 $ 371
Operating Activities
Higher net income in 2010 increased cash provided by operating activities compared to 2009.
Conversely, the adoption of a new accounting standard for our receivables securitization facility from a
sale of undivided interests (recorded as an operating activity) to a secured borrowing (recorded as a
financing activity) decreased cash provided by operating activities by $400 million in 2010 versus $184
million in 2009. Lower net income in 2009, a reduction of $184 million in the outstanding balance of our
receivables securitization facility, higher pension contributions of $72 million, and changes to working
capital combined to decrease cash provided by operating activities compared to 2008.
Investing Activities
Higher capital investments and lower proceeds from asset sales in 2010 drove the increase in cash used
in investing activities compared to 2009. Lower capital investments and higher proceeds from asset sales
drove the decrease in cash used in investing activities in 2009 versus 2008.
The tables below detail cash capital investments and track statistics for the years ended December 31,
2010, 2009, and 2008:
Millions 2010 2009 2008
Rail and other track material $ 626 $ 614 $ 620
Ties 444 449 425
Ballast 190 208 243
Other [a] 365 338 386
Total road infrastructure replacements 1,625 1,609 1,674
Line expansion and other capacity projects 122 162 488
Commercial facilities 227 193 254
Total capacity and commercial facilities 349 355 742
Locomotives and freight cars 330 272 164
Positive Train Control 84 28 -
Technology and other 94 90 174
Total cash capital investments $ 2,482 $ 2,354 $ 2,754
[a] Other includes bridges and tunnels, signals, other road assets, and road work equipment.
2010 2009 2008
Track miles of rail replaced 795 841 810
Track miles of rail capacity expansion 46 62 118
New ties installed (thousands) 4,334 4,814 4,599
Miles of track surfaced 10,883 15,128 14,454
Capital Plan – In 2011, we expect our total capital investments to be approximately $3.2 billion, which
may be revised if business conditions warrant or if new laws or regulations affect our ability to generate
sufficient returns on these investments. We expect that approximately 65% of our 2011 capital