Property, plant and equipment including equipment held for lease

9 Months Ended

Sep. 30, 2022

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, 2022			December 31, 2021
Land, buildings and improvements	$	14,089		$	14,070
Machinery and equipment		26,072			26,063
Furniture, fixtures and other		4,968			4,640
		45,129			44,773
Accumulated depreciation		(24,751	)		(23,939	)
	$	20,378		$	20,834

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, 2022			December 31, 2021
Railroad:
Land, track structure and other roadway	$	66,744		$	65,843
Locomotives, freight cars and other equipment		15,989			13,822
Construction in progress		1,366			1,027
		84,099			80,692
Accumulated depreciation		(17,530	)		(14,978	)
		66,569			65,714
Utilities and energy:
Utility generation, transmission and distribution systems		90,756			90,223
Interstate natural gas pipeline assets		17,882			17,423
Independent power plants and other assets		14,352			13,695
Construction in progress		5,198			4,196
		128,188			125,537
Accumulated depreciation		(37,285	)		(35,721	)
		90,903			89,816
	$	157,472		$	155,530

Depreciation expense for the first nine months of 2022 and 2021 is summarized below (in millions).

	First Nine Months
	2022		2021
Insurance and other	$	1,690	$	1,725
Railroad, utilities and energy		4,646		4,485
	$	6,336	$	6,210

Equipment held for lease [Member]

Property, plant and equipment including equipment held for lease

Notes to Consolidated Financial Statements (Continued)

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, 2022			December 31, 2021
Railcars	$	9,556		$	9,448
Aircraft		10,089			9,234
Other		5,120			5,053
		24,765			23,735
Accumulated depreciation		(9,626	)		(8,817	)
	$	15,139		$	14,918

Depreciation expense for equipment held for lease in the first nine months was $900 million in 2022 and $861 million in 2021. Fixed and variable operating lease revenues for the third quarter and first nine months of 2022 and 2021 are summarized below (in millions).

	Third Quarter				First Nine Months
	2022		2021		2022		2021
Fixed lease revenue	$	1,344	$	1,151	$	3,796	$	3,318
Variable lease revenue		615		414		1,722		1,018
	$	1,959	$	1,565	$	5,518	$	4,336