Property, plant and equipment including equipment held for lease

9 Months Ended

Sep. 30, 2019

Property, plant and equipment including equipment held for lease

Note 10. Property, plant and equipment

A summary of property, plant and equipment of our insurance and other businesses follows (in millions).

	September 30, 2019			December 31, 2018
Land	$	2,557		$	2,536
Buildings and improvements		10,530			9,959
Machinery and equipment		23,409			22,574
Furniture, fixtures and other		5,064			4,758
		41,560			39,827
Accumulated depreciation		(20,330	)		(19,199	)
	$	21,230		$	20,628

A summary of property, plant and equipment of railroad and utilities and energy businesses follows (in millions). The utility generation, transmission and distribution systems and interstate natural gas pipeline assets are owned by regulated public utility and natural gas pipeline subsidiaries.

	September 30, 2019			December 31, 2018
Railroad:
Land, track structure and other roadway	$	61,345		$	59,509
Locomotives, freight cars and other equipment		13,381			13,016
Construction in progress		788			664
		75,514			73,189
Accumulated depreciation		(11,512	)		(10,004	)
		64,002			63,185
Utilities and energy:
Utility generation, transmission and distribution systems		78,596			77,288
Interstate natural gas pipeline assets		7,637			7,524
Independent power plants and other assets		8,572			8,324
Construction in progress		5,313			3,110
		100,118			96,246
Accumulated depreciation		(28,794	)		(27,651	)
		71,324			68,595
	$	135,326		$	131,780

Notes to Consolidated Financial Statements (Continued)

Note 10. Property, plant and equipment (Continued)

Depreciation expense for the first nine months of 2019 and 2018 is summarized below (in millions).

	First Nine Months
	2019		2018
Insurance and other	$	1,660	$	1,622
Railroad, utilities and energy		3,881		3,678
	$	5,541	$	5,300

Equipment held for lease [Member]

Property, plant and equipment including equipment held for lease

Note 11. Equipment held for lease

Equipment held for lease includes railcars, aircraft, over-the-road trailers, intermodal tank containers, cranes, storage units and furniture. Equipment held for lease is summarized below (in millions).

	September 30, 2019			December 31, 2018
Railcars	$	9,211		$	8,862
Aircraft		7,907			7,376
Other equipment held for lease		4,802			4,379
		21,920			20,617
Accumulated depreciation		(6,986	)		(6,319	)
	$	14,934		$	14,298

Depreciation expense for equipment held for lease in the first nine months was $880 million in 2019 and $817 million in 2018. Operating lease revenues by type for the third quarter and first nine months of 2019 were as follows (in millions).

	Fixed lease revenue		Variable lease revenue		Total
Third quarter	$	1,097	$	341	$	1,438
First nine months		3,289		1,076		4,365

Future operating lease rentals to be received on assets we lease to others at September 30, 2019 are as follows (in millions).

2019		2020		2021		2022		2023		Thereafter		Total
$	674	$	2,245	$	1,659	$	1,134	$	726	$	590	$	7,028