Property, plant and equipment including equipment held for lease

6 Months Ended

Jun. 30, 2020

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).

	June 30, 2020			December 31, 2019
Land, buildings and improvements	$	13,428		$	13,259
Machinery and equipment		24,422			24,285
Furniture, fixtures and other		4,621			4,666
		42,471			42,210
Accumulated depreciation		(21,349	)		(20,772	)
	$	21,122		$	21,438

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.

	June 30, 2020			December 31, 2019
Railroad:
Land, track structure and other roadway	$	62,764		$	62,404
Locomotives, freight cars and other equipment		13,516			13,482
Construction in progress		1,076			748
		77,356			76,634
Accumulated depreciation		(12,401	)		(12,101	)
		64,955			64,533
Utilities and energy:
Utility generation, transmission and distribution systems		81,518			81,127
Interstate natural gas pipeline assets		8,215			8,165
Independent power plants and other assets		8,850			8,817
Construction in progress		4,499			3,732
		103,082			101,841
Accumulated depreciation		(29,257	)		(28,536	)
		73,825			73,305
	$	138,780		$	137,838

Depreciation expense for the first six months of 2020 and 2019 is summarized below (in millions).

	First Six Months
	2020		2019
Insurance and other	$	1,147	$	1,092
Railroad, utilities and energy		2,716		2,544
	$	3,863	$	3,636

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).

	June 30, 2020			December 31, 2019
Railcars	$	9,370		$	9,260
Aircraft		8,059			8,093
Other equipment held for lease		4,907			4,862
		22,336			22,215
Accumulated depreciation		(7,449	)		(7,150	)
	$	14,887		$	15,065

Depreciation expense for equipment held for lease in the first six months was $599 million in 2020 and $579 million in 2019. Operating lease revenues by type for the second quarter and first six months of 2020 and 2019 were as follows (in millions).

	Fixed lease revenue		Variable lease revenue		Total
Second quarter 2020	$	1,062	$	99	$	1,161
Second quarter 2019		1,118		373		1,491
First six months 2020		2,158		431		2,589
First six months 2019		2,192		735		2,927