Union Pacific 2010 Annual Report Download - page 68

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68
Railroad Retirement System – All Railroad employees are covered by the Railroad Retirement System
(the System). Contributions made to the System are expensed as incurred and amounted to
approximately $566 million in 2010, $562 million in 2009, and $620 million in 2008.
Collective Bargaining Agreements – Under collective bargaining agreements, we participate in multi-
employer benefit plans that provide certain postretirement health care and life insurance benefits for
eligible union employees. Premiums paid under these plans are expensed as incurred and amounted to
$60 million in 2010, $48 million in 2009, and $49 million in 2008.
6. Other Income
Other income included the following for the years ended December 31:
Millions 2010 2009 2008
Rental income $ 84 $ 73 $ 87
Net gain on non-operating asset dispositions 25 162 41
Interest income 4 5 21
Receivable securitization fees [a] - (9) (23)
Early extinguishment of debt (21) - -
Non-operating environmental costs and other (38) (36) (34)
Total $ 54 $ 195 $ 92
[a] Receivable securitization fees totaling $6 million for the year ended December 31, 2010 are classified as interest expense.
(See Note 3 and Note 10 for further discussion.)
In June of 2009, we completed a $118 million sale of land to the Regional Transportation District (RTD) in
Colorado, resulting in a $116 million pre-tax gain. The agreement with the RTD involved a 33-mile
industrial lead track in Boulder, Colorado.
7. Income Taxes
Components of income tax expense/(benefit) were as follows for the years ended December 31:
Millions 2010 2009 2008
Current:
Federal $ 862 $ 316 $ 698
State 119 50 73
Total current tax expense 981 366 771
Deferred:
Federal 550 650 646
State 97 30 33
Total deferred tax expense 647 680 679
Unrecognized tax benefits:
Federal 26 39 (121)
State (1) (1) (13)
Total unrecognized tax benefits expense/(benefit) 25 38 (134)
Total income tax expense $ 1,653 $ 1,084 $ 1,316