Union Pacific 2010 Annual Report Download - page 77

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77
14. Debt
Total debt as of December 31, 2010 and 2009, net of interest rate swaps designated as fair value
hedges, is summarized below:
Millions 2010 2009
Notes and debentures, 3.0% to 7.9% due through 2054 [a] $ 6,886 $ 7,277
Capitalized leases, 4.7% to 9.3% due through 2028 1,909 2,061
Equipment obligations, 6.2% to 8.1% due through 2031 183 219
Tax-exempt financings, 2.3% to 5.7% due through 2026 162 182
Floating rate term loan, due through 2013 100 100
Receivables securitization facility (Note 10) 100 -
Mortgage bonds, 4.8% due through 2030 58 58
Medium-term notes, 9.2% to 10.0% due through 2020 42 61
Unamortized discount (198) (110)
Total debt [a] 9,242 9,848
Less: current portion (239) (212)
Total long-term debt $ 9,003 $ 9,636
[a] 2010 and 2009 included a write-up of $0 million and $15 million, respectively, due to market value adjustments for debt with
qualifying fair value hedges that are recorded on the Consolidated Statements of Financial Position.
Debt Maturities – The following table presents aggregate debt maturities as of December 31, 2010,
excluding market value adjustments.
Millions
2011 $ 339
2012 646
2013 774
2014 794
2015 456
Thereafter 6,233
Total debt $ 9,242
As of December 31, 2010, we have reclassified as long-term debt approximately $100 million of debt due
within one year that we intend to refinance. This reclassification reflects our ability and intent to refinance
any short-term borrowings and certain current maturities of long-term debt on a long-term basis. At
December 31, 2009, we reclassified as long-term debt approximately $320 million of debt due within one
year that we intended to refinance at that time.
Mortgaged Properties – Equipment with a carrying value of approximately $3.2 billion and $3.4 billion at
December 31, 2010 and 2009, respectively, served as collateral for capital leases and other types of
equipment obligations in accordance with the secured financing arrangements utilized to acquire such
railroad equipment.
As a result of the merger of Missouri Pacific Railroad Company (MPRR) with and into UPRR on January
1, 1997, and pursuant to the underlying indentures for the MPRR mortgage bonds, UPRR must maintain
the same value of assets after the merger in order to comply with the security requirements of the
mortgage bonds. As of the merger date, the value of the MPRR assets that secured the mortgage bonds
was approximately $6.0 billion. In accordance with the terms of the indentures, this collateral value must
be maintained during the entire term of the mortgage bonds irrespective of the outstanding balance of
such bonds.
Credit Facilities – On December 31, 2010, we had $1.9 billion of credit available under our revolving
credit facility (the facility). The facility is designated for general corporate purposes and supports the
issuance of commercial paper. We did not draw on the facility during 2010. Commitment fees and interest
rates payable under the facility are similar to fees and rates available to comparably rated, investment-
grade borrowers. The facility allows for borrowings at floating rates based on London Interbank Offered