Union Pacific 2011 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2011 Union Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

69
Other Retirement Programs
401(k)/Thrift Plan – We provide a defined contribution plan (401(k)/thrift plan) to eligible non-union
employees for whom we make matching contributions. We match 50 cents for each dollar contributed by
employees up to the first six percent of compensation contributed. Our plan contributions were $14 million
in 2011, $13 million in 2010 and $14 million in 2009.
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 $600 million in 2011, $566 million in 2010, and $562 million in 2009.
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
$66 million in 2011, $60 million in 2010, and $48 million in 2009.
6. Other Income
Other income included the following for the years ended December 31:
Millions 2011 2010 2009
Rental income $ 80 $ 84 $ 73
Net gain on non-operating asset dispositions 43 25 162
Interest income 3 4 5
Early extinguishment of debt (5) (21) -
Non-operating environmental costs and other (9) (38) (45)
Total $ 112 $ 54 $ 195
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 were as follows for the years ended December 31:
Millions 2011 2010 2009
Current tax expense:
Federal $ 862 $ 862 $ 316
State 124 119 50
Total current tax expense 986 981 366
Deferred tax expense:
Federal 894 550 650
State 70 97 30
Total deferred tax expense 964 647 680
Unrecognized tax benefits:
Federal 11 26 39
State 11 (1) (1)
Total unrecognized tax benefits expense/(benefits) 22 25 38
Total income tax expense $ 1,972 $ 1,653 $ 1,084