Property, plant and equipment including equipment held for lease

9 Months Ended

Sep. 30, 2023

Property, plant and equipment including equipment held for lease

Note 11. Property, plant and equipment

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

	September 30, 2023			December 31, 2022
Land, buildings and improvements	$	14,772		$	14,761
Machinery and equipment		27,973			26,690
Furniture, fixtures and other		5,443			4,847
		48,188			46,298
Accumulated depreciation		(26,430	)		(25,185	)
	$	21,758		$	21,113

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. Assets of PTC are included in land, buildings, improvements and other within the utilities and energy section below.

	September 30, 2023			December 31, 2022
Railroad:
Land, track structure and other roadway	$	69,731		$	67,350
Locomotives, freight cars and other equipment		16,125			16,031
Construction in progress		1,919			1,743
		87,775			85,124
Accumulated depreciation		(19,046	)		(17,899	)
		68,729			67,225
Utilities and energy:
Utility generation, transmission and distribution systems		93,667			92,759
Interstate natural gas pipeline assets		18,800			18,328
Independent power plants and other assets		14,668			14,650
Land, buildings, improvements and other		8,560			—
Construction in progress		8,947			5,357
		144,642			131,094
Accumulated depreciation		(39,915	)		(38,051	)
		104,727			93,043
	$	173,456		$	160,268

Depreciation expense for the first nine months of 2023 and 2022 is summarized below (in millions).

	First Nine Months
	2023		2022
Insurance and other	$	1,776	$	1,690
Railroad, utilities and energy		5,302		4,646
	$	7,078	$	6,336

Equipment held for lease [Member]

Property, plant and equipment including equipment held for lease

Note 12. Equipment held for lease

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

	September 30, 2023			December 31, 2022
Railcars	$	9,912		$	9,612
Aircraft		11,840			10,667
Other		5,430			5,212
		27,182			25,491
Accumulated depreciation		(10,898	)		(9,907	)
	$	16,284		$	15,584

Depreciation expense for equipment held for lease in the first nine months was $935 million in 2023 and $900 million in 2022. Fixed and variable operating lease revenues for the third quarter and first nine months of 2023 and 2022 are summarized below (in millions).

	Third Quarter				First Nine Months
	2023		2022		2023		2022
Fixed lease revenue	$	1,502	$	1,344	$	4,397	$	3,796
Variable lease revenue		602		615		1,830		1,722
	$	2,104	$	1,959	$	6,227	$	5,518