Union Pacific 2012 Annual Report Download - page 35

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The tables below detail cash capital investments and track statistics for the years ended December 31,
2012, 2011, and 2010:
Millions 2012 2011 2010
Rail and other track material $ 759 $ 697 $ 626
Ties 434 403 444
Ballast 203 220 190
Other [a] 312 382 365
Total road infrastructure replacements 1,708 1,702 1,625
Line expansion and other capacity projects 489 311 122
Commercial facilities 169 111 227
Total capacity and commercial facilities 658 422 349
Locomotives and freight cars 875 675 330
Positive train control 349 229 84
Technology and other 148 148 94
Total cash capital investments $ 3,738 $ 3,176 $ 2,482
[a] Other includes bridges and tunnels, signals, other road assets, and road work equipment.
2012 2011 2010
Track miles of rail replaced 1,051 895 795
Track miles of rail capacity expansion 139 69 46
New ties installed (thousands) 4,436 3,785 4,334
Miles of track surfaced 11,049 11,284 10,883
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Capital Plan – In 2013, we expect our total capital investments to be approximately $3.6 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 to use over 60% of our 2013 capital investments to
replace and improve existing capital assets. Among our major investment categories are replacing and
improving track infrastructure; upgrading our locomotive and freight car fleet, including acquisition of 100
locomotives and 900 freight cars, primarily large covered hoppers, gondolas, auto racks and refrigerated
box cars; improving technology, including investing in PTC; and other capital projects. Additionally, we
will continue increasing our network and terminal capacity; for example, to balance terminal capacity with
more mainline capacity from our track expansion in the Southern region, we are constructing a rail facility
at Santa Teresa, New Mexico, that initially will include a run-through and fueling facility and an intermodal
ramp.
We expect to fund our 2013 cash capital investments by using some or all of the following: cash
generated from operations, proceeds from the sale or lease of various operating and non-operating
properties, proceeds from the issuance of long-term debt, and cash on hand. Our annual capital plan is a
critical component of our long-term strategic plan, which we expect will enhance the long-term value of
the Corporation for our shareholders by providing sufficient resources to (i) replace and improve our
existing track infrastructure to provide safe and fluid operations, (ii) increase network efficiency by adding
or improving facilities and track, and (iii) make investments that meet customer demand and take
advantage of opportunities for long-term growth.
Financing Activities
Cash used in financing activities increased in 2012 versus 2011. Dividend payments increased by $309
million, reflecting our higher dividend rate, and common stock repurchases increased by $56 million. Our
debt levels did not materially change from last year after a decline in debt levels from 2010. Therefore,
less cash was used in 2012 for debt activity than in 2011.
Cash used in financing activities increased in 2011 versus 2010. Higher dividend payments in 2011 of
$837 million compared to $602 million in 2010, reflecting our increased dividend rate and the repurchase
of $1.4 billion of our common stock, a $169 million increase from 2010 repurchases, drove the increase.
We used less cash to reduce outstanding debt in 2011, which partially offset this increase.