Form 10-K - Union Pacific
Form 10-K - Union Pacific
Form 10-K - Union Pacific
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Other Retirement Programs<br />
401(k)/Thrift Plan – We provide a defined contribution plan (401(k)/thrift plan) to eligible non-union<br />
employees for whom we make matching contributions. We match 50 cents for each dollar contributed by<br />
employees up to the first six percent of compensation contributed. Our plan contributions were $14 million<br />
in 2011, $13 million in 20<strong>10</strong> and $14 million in 2009.<br />
Railroad Retirement System – All Railroad employees are covered by the Railroad Retirement System<br />
(the System). Contributions made to the System are expensed as incurred and amounted to<br />
approximately $600 million in 2011, $566 million in 20<strong>10</strong>, and $562 million in 2009.<br />
Collective Bargaining Agreements – Under collective bargaining agreements, we participate in multiemployer<br />
benefit plans that provide certain postretirement health care and life insurance benefits for<br />
eligible union employees. Premiums paid under these plans are expensed as incurred and amounted to<br />
$66 million in 2011, $60 million in 20<strong>10</strong>, and $48 million in 2009.<br />
6. Other Income<br />
Other income included the following for the years ended December 31:<br />
Millions 2011 20<strong>10</strong> 2009<br />
Rental income $ 80 $ 84 $ 73<br />
Net gain on non-operating asset dispositions 43 25 162<br />
Interest income 3 4 5<br />
Early extinguishment of debt (5) (21) -<br />
Non-operating environmental costs and other (9) (38) (45)<br />
Total $ 112 $ 54 $ 195<br />
In June of 2009, we completed a $118 million sale of land to the Regional Transportation District (RTD) in<br />
Colorado, resulting in a $116 million pre-tax gain. The agreement with the RTD involved a 33-mile<br />
industrial lead track in Boulder, Colorado.<br />
7. Income Taxes<br />
Components of income tax expense were as follows for the years ended December 31:<br />
Millions 2011 20<strong>10</strong> 2009<br />
Current tax expense:<br />
Federal $ 862 $ 862 $ 316<br />
State 124 119 50<br />
Total current tax expense 986 981 366<br />
Deferred tax expense:<br />
Federal 894 550 650<br />
State 70 97 30<br />
Total deferred tax expense 964 647 680<br />
Unrecognized tax benefits:<br />
Federal 11 26 39<br />
State 11 (1) (1)<br />
Total unrecognized tax benefits expense/(benefits) 22 25 38<br />
Total income tax expense $ 1,972 $ 1,653 $ 1,084<br />
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