Union Pacific 2012 Annual Report Download - page 68

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68
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 $15 million
in 2012, $14 million in 2011 and $13 million in 2010.
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 $644 million in 2012, $600 million in 2011, and $566 million in 2010.
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
$62 million in 2012, $66 million in 2011, and $60 million in 2010.
6. Other Income
Other income included the following for the years ended December 31:
Millions 2012 2011 2010
Rental income $ 83 $ 80 $ 84
Net gain on non-operating asset dispositions 29 43 25
Interest income 3 3 4
Early extinguishment of debt (6) (5) (21)
Non-operating environmental costs and other (1) (9) (38)
Total $ 108 $ 112 $ 54
7. Income Taxes
Components of income tax expense were as follows for the years ended December 31:
Millions 2012 2011 2010
Current tax expense:
Federal $ 1,335 $ 862 $ 862
State 153 124 119
Total current tax expense 1,488 986 981
Deferred tax expense:
Federal 760 894 550
State 120 70 97
Total deferred tax expense 880 964 647
Unrecognized tax benefits:
Federal 5 11 26
State 2 11 (1)
Total unrecognized tax benefits expense/(benefits) 7 22 25
Total income tax expense $ 2,375 $ 1,972 $ 1,653