Property, plant and equipment

12 Months Ended

Dec. 31, 2018

Property, plant and equipment

(10) Property, plant and equipment

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

	December 31,
	2018			2017
Land	$	2,536		$	2,523
Buildings and improvements		9,959			9,409
Machinery and equipment		22,574			21,190
Furniture, fixtures and other		4,758			4,519
		39,827			37,641
Accumulated depreciation		(19,199	)		(17,773	)
	$	20,628		$	19,868

A summary of property, plant and equipment of our railroad and our 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.

	December 31,
	2018			2017
Railroad:
Land, track structure and other roadway	$	59,509		$	57,408
Locomotives, freight cars and other equipment		13,016			12,543
Construction in progress		664			989
		73,189			70,940
Accumulated depreciation		(10,004	)		(8,627	)
		63,185			62,313
Utilities and energy:
Utility generation, transmission and distribution systems		77,288			74,660
Interstate natural gas pipeline assets		7,524			7,176
Independent power plants and other assets		8,324			7,499
Construction in progress		3,110			2,556
		96,246			91,891
Accumulated depreciation		(27,651	)		(26,020	)
		68,595			65,871
	$	131,780		$	128,184

Depreciation expense for each of the three years ending December 31, 2018 is summarized below (in millions).

	2018		2017		2016
Insurance and other	$	2,186	$	2,116	$	2,017
Railroad, utilities and energy		5,098		4,852		4,639
	$	7,284	$	6,968	$	6,656

Equipment held for lease [Member]

Property, plant and equipment

(11) Equipment held for lease

Equipment held for lease is summarized below (in millions). Equipment held for lease includes railcars, aircraft, over-the-road trailers, intermodal tank containers, cranes, storage units and furniture. In conjunction with the adoption of ASC 606, we recorded a net asset of approximately $3.5 billion related to aircraft sold under fractional aircraft ownership programs in aircraft. Such amount included cost of approximately $5.3 billion, net of accumulated depreciation of $1.8 billion. We also recorded other liabilities of approximately $3.5 billion for estimated aircraft repurchase liabilities and unearned lease revenues, substantially offsetting the amount recorded in aircraft. See Note 1(w).

	December 31,
	2018			2017
Railcars	$	8,862		$	8,352
Aircraft		7,376			1,456
Other equipment held for lease		4,379			3,967
		20,617			13,775
Accumulated depreciation		(6,319	)		(3,608)
	$	14,298		$	10,167

Depreciation expense for equipment held for lease was $1,102 million in 2018, $751 million in 2017 and $755 million in 2016. As of December 31, 2018, the minimum future lease rentals to be received on equipment held for lease were as follows (in millions): 2019 – $2,493; 2020 – $1,771; 2021 – $1,222; 2022 – $779; 2023 – $421; and thereafter – $377.