Union Pacific 2012 Annual Report Download - page 47

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The following table presents the net periodic pension and OPEB cost/(benefit) for the years ended
December 31:
Est.
Millions 2013 2012 2011 2010
Net periodic pension cost $ 111 $ 89 $ 78 $ 51
Net periodic OPEB cost/(benefit) 15 13 (6) (14)
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Our net periodic pension cost is expected to increase to approximately $111 million in 2013 from $89
million in 2012. The increase is driven mainly by a decrease in the discount rate to 3.78%, Our net
periodic OPEB expense is expected to increase to approximately $15 million in 2013 from $13 million in
2012. The increase in our net periodic OPEB cost is primarily driven by a decrease in the discount rate to
3.48%.
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CAUTIONARY INFORMATION
Certain statements in this report, and statements in other reports or information filed or to be filed with the
SEC (as well as information included in oral statements or other written statements made or to be made
by us), are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the
Securities Exchange Act of 1934. These forward-looking statements and information include, without
limitation, (A) statements in the CEO’s letter preceding Part I; statements regarding planned capital
expenditures under the caption “2013 Capital Expenditures” in Item 2 of Part I; statements regarding
dividends in Item 5; and statements and information set forth under the captions “2013 Outlook” and
“Liquidity and Capital Resources” in this Item 7, and (B) any other statements or information in this report
(including information incorporated herein by reference) regarding: expectations as to financial
performance, revenue growth and cost savings; the time by which goals, targets, or objectives will be
achieved; projections, predictions, expectations, estimates, or forecasts as to our business, financial and
operational results, future economic performance, and general economic conditions; expectations as to
operational or service performance or improvements; expectations as to the effectiveness of steps taken
or to be taken to improve operations and/or service, including capital expenditures for infrastructure
improvements and equipment acquisitions, any strategic business acquisitions, and modifications to our
transportation plans (including statements set forth in Item 2 as to expectations related to our planned
capital expenditures); expectations as to existing or proposed new products and services; expectations
as to the impact of any new regulatory activities or legislation on our operations or financial results;
estimates of costs relating to environmental remediation and restoration; estimates and expectations
regarding tax matters; expectations that claims, litigation, environmental costs, commitments, contingent
liabilities, labor negotiations or agreements, or other matters will not have a material adverse effect on our
consolidated results of operations, financial condition, or liquidity and any other similar expressions
concerning matters that are not historical facts. Forward-looking statements may be identified by their
use of forward-looking terminology, such as “believes,” “expects,” “may,” “should,” “would,” “will,”
“intends,” “plans,” “estimates,” “anticipates,” “projects” and similar words, phrases or expressions.
Forward-looking statements should not be read as a guarantee of future performance or results, and will
not necessarily be accurate indications of the times that, or by which, such performance or results will be
achieved. Forward-looking statements and information are subject to risks and uncertainties that could
cause actual performance or results to differ materially from those expressed in the statements and
information. Forward-looking statements and information reflect the good faith consideration by
management of currently available information, and may be based on underlying assumptions believed to
be reasonable under the circumstances. However, such information and assumptions (and, therefore,
such forward-looking statements and information) are or may be subject to variables or unknown or
unforeseeable events or circumstances over which management has little or no influence or control. The
Risk Factors in Item 1A of this report could affect our future results and could cause those results or other
outcomes to differ materially from those expressed or implied in any forward-looking statements or
information. To the extent circumstances require or we deem it otherwise necessary, we will update or
amend these risk factors in a Form 10-Q, Form 8-K or subsequent Form 10-K. All forward-looking
statements are qualified by, and should be read in conjunction with, these Risk Factors.
Forward-looking statements speak only as of the date the statement was made. We assume no obligation
to update forward-looking information to reflect actual results, changes in assumptions or changes in
other factors affecting forward-looking information. If we do update one or more forward-looking