Property, plant and equipment including equipment held for lease

6 Months Ended

Jun. 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).

	June 30, 2023			December 31, 2022
Land, buildings and improvements	$	14,695		$	14,761
Machinery and equipment		27,464			26,690
Furniture, fixtures and other		5,297			4,847
		47,456			46,298
Accumulated depreciation		(26,043	)		(25,185	)
	$	21,413		$	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 Pilot are included in land, buildings, improvements and other within the utilities and energy section of the following table.

	June 30, 2023			December 31, 2022
Railroad:
Land, track structure and other roadway	$	68,885		$	67,350
Locomotives, freight cars and other equipment		16,051			16,031
Construction in progress		2,009			1,743
		86,945			85,124
Accumulated depreciation		(18,750	)		(17,899	)
		68,195			67,225
Utilities and energy:
Utility generation, transmission and distribution systems		94,351			92,759
Interstate natural gas pipeline assets		18,605			18,328
Independent power plants and other assets		14,680			14,650
Land, buildings, improvements and other		8,300			—
Construction in progress		7,610			5,357
		143,546			131,094
Accumulated depreciation		(39,994	)		(38,051	)
		103,552			93,043
	$	171,747		$	160,268

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

	First Six Months
	2023		2022
Insurance and other	$	1,158	$	1,127
Railroad, utilities and energy		3,494		3,091
	$	4,652	$	4,218

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).

	June 30, 2023			December 31, 2022
Railcars	$	9,747		$	9,612
Aircraft		11,438			10,667
Other		5,347			5,212
		26,532			25,491
Accumulated depreciation		(10,504	)		(9,907	)
	$	16,028		$	15,584

Notes to Consolidated Financial Statements (Continued)

Note 12. Equipment held for lease (Continued)

Depreciation expense for equipment held for lease in the first six months was $623 million in 2023 and $593 million in 2022. Fixed and variable operating lease revenues for the second quarter and first six months of 2023 and 2022 are summarized below (in millions).

	Second Quarter				First Six Months
	2023		2022		2023		2022
Fixed lease revenue	$	1,478	$	1,264	$	2,895	$	2,452
Variable lease revenue		601		623		1,228		1,107
	$	2,079	$	1,887	$	4,123	$	3,559