Property, plant and equipment including equipment held for lease

9 Months Ended

Sep. 30, 2024

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, 2024			December 31, 2023
Land, buildings and improvements	$	15,519		$	15,058
Machinery and equipment		28,830			28,010
Furniture, fixtures and other		5,657			5,566
		50,006			48,634
Accumulated depreciation		(27,706	)		(26,604	)
	$	22,300		$	22,030

Notes to Consolidated Financial Statements

Note 11. Property, plant and equipment

A summary of property, plant and equipment of our 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, 2024			December 31, 2023
Railroad:
Land, track structure and other roadway	$	73,453		$	71,692
Locomotives, freight cars and other equipment		15,778			16,256
Construction in progress		1,945			1,715
		91,176			89,663
Accumulated depreciation		(20,123	)		(19,464	)
		71,053			70,199
Utilities and energy:
Utility generation, transmission and distribution systems		99,774			96,195
Interstate natural gas pipeline assets		19,750			19,226
Independent power plants and other		15,195			14,781
Land, buildings and improvements*		4,796			4,540
Machinery, equipment and other*		4,177			3,855
Construction in progress		11,225			9,551
		154,917			148,148
Accumulated depreciation		(43,794	)		(40,731	)
		111,123			107,417
	$	182,176		$	177,616

——————

* Assets held by Pilot

Depreciation expense for the first nine months of 2024 and 2023 is summarized below (in millions).

	First Nine Months
	2024		2023
Insurance and other	$	1,845	$	1,776
Railroad, utilities and energy		5,330		5,302
	$	7,175	$	7,078

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, 2024			December 31, 2023
Railcars	$	10,226		$	10,031
Aircraft		13,886			12,537
Other		5,751			5,576
		29,863			28,144
Accumulated depreciation		(12,067	)		(11,197	)
	$	17,796		$	16,947

Notes to Consolidated Financial Statements

Note 12. Equipment held for lease

Depreciation expense for equipment held for lease in the first nine months was $1,054 million in 2024 and $935 million in 2023. Operating lease revenues for the third quarter and first nine months of 2024 and 2023 are summarized below (in millions).

	Third Quarter				First Nine Months
	2024		2023		2024		2023
Fixed lease revenue	$	1,637	$	1,502	$	4,801	$	4,397
Variable lease revenue		678		602		2,044		1,830
	$	2,315	$	2,104	$	6,845	$	6,227