Union Pacific 2012 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2012 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 101

  • 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

62
Pre-tax amounts recognized in accumulated other comprehensive income/(loss) as of December 31,
2012 and 2011 consist of:
2012 2011
Millions Pension OPEB Tota
l
Pension OPEB Tota
l
Prior service (cost)/credit $ - $ 45 $ 45 $ (1) $ 63 $ 62
Net actuarial loss (1,685) (175) (1,860) (1,503) (146) (1,649)
Total $ (1,685) $ (130) $ (1,815) $ (1,504) $ (83) $ (1,587)
Pre-tax changes recognized in other comprehensive income/(loss) during 2012, 2011 and 2010 were as
follows:
Pension OPEB
Millions 2012 2011 2010 2012 2011 2010
Prior service cost/(credit) $ - $ - $ - $ - $ 10 $ (6)
Net actuarial loss 265 515 165 42 14 16
Amortization of:
Prior service cost/(credit) (1) (2) (3) 18 34 45
Actuarial loss (83) (71) (49) (13) (11) (13)
Total $ 181 $ 442 $ 113 $ 47 $ 47 $ 42
Amounts included in accumulated other comprehensive income/(loss) expected to be amortized into net
periodic cost (benefit) during 2013:
Millions Pension OPEB Tota
l
Prior service benefit $ - $ (16) $ (16)
Net actuarial loss 106 15 121
Total $ 106 $ (1) $ 105
Underfunded Accumulated Benefit Obligation – The accumulated benefit obligation (ABO) is the present
value of benefits earned to date, assuming no future compensation growth. The underfunded
accumulated benefit obligation represents the difference between the ABO and the fair value of plan
assets. At December 31, 2012 and 2011, the non-qualified (supplemental) plan ABO was $331 million
and $284 million, respectively. The following table discloses only the PBO, ABO, and fair value of plan
assets for pension plans where the accumulated benefit obligation is in excess of the fair value of the plan
assets as of December 31:
Underfunded Accumulated Benefit Obligation
Millions 2012 [a
]
2011
Projected benefit obligation $ 3,574 $ 3,165
Accumulated benefit obligation $ 3,440 $ 3,050
Fair value of plan assets 2,857 2,505
Underfunded accumulated benefit obligation $ (583) $ (545)
[a] The fair value of plan assets for one plan is in excess of the accumulated benefit obligation and therefore is not
included.
The ABO for all defined benefit pension plans was $3.4 billion and $3.0 billion at December 31, 2012 and
2011, respectively.