Union Pacific 2012 Annual Report Download - page 72

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72
credit rating fall below investment grade, the value of the outstanding undivided interest held by investors
would be reduced, and, in certain cases, the investors would have the right to discontinue the facility.
The Railroad collected approximately $20.1 billion and $18.8 billion of receivables during the years ended
December 31, 2012 and 2011, respectively. UPRI used certain of these proceeds to purchase new
receivables under the facility.
The costs of the receivables securitization facility include interest, which will vary based on prevailing
commercial paper rates, program fees paid to banks, commercial paper issuing costs, and fees for
unused commitment availability. The costs of the receivables securitization facility are included in interest
expense and were $3 million, $4 million and $6 million for 2012, 2011 and 2010, respectively.
The investors have no recourse to the Railroad’s other assets, except for customary warranty and
indemnity claims. Creditors of the Railroad do not have recourse to the assets of UPRI.
In July 2012, the receivables securitization facility was renewed for an additional 364-day period at
comparable terms and conditions.
Subsequent Event – On January 2, 2013, we transferred an additional $300 million in undivided interest
to investors under the receivables securitization facility, increasing the value of the outstanding undivided
interest held by investors from $100 million to $400 million.
11. Properties
The following tables list the major categories of property and equipment, as well as the weighted-average
composite depreciation rate for each category:
Millions, Except Percentages Accumulated Net Boo
k
Depreciation
As of December 31, 2012 Cos
t
Depreciation Value Rate for 201
2
Land $ 5,105 $ N/A $ 5,105 N/A
Road:
Rail and other track material [a] 13,220 4,756 8,464 3.4%
Ties 8,404 2,157 6,247 2.8%
Ballast 4,399 1,085 3,314 2.9%
Other [b] 14,806 2,583 12,223 2.6%
Total road 40,829 10,581 30,248 3.0%
Equipment:
Locomotives 7,297 3,321 3,976 6.2%
Freight cars 1,991 1,018 973 3.5%
Work equipment and other 535 89 446 6.9%
Total equipment 9,823 4,428 5,395 5.7%
Technology and other 633 273 360 12.6%
Construction in progress 889 - 889 N/A
Total $ 57,279 $ 15,282 $ 41,997 N/A
[a] Includes a weighted-average composite depreciation rate for rail in high-density traffic corridors as discussed below.
[b] Other includes grading, bridges and tunnels, signals, buildings, and other road assets.