Property, plant and equipment including equipment held for lease

9 Months Ended

Sep. 30, 2021

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).

	September 30, 2021			December 31, 2020
Land, buildings and improvements	$	13,846		$	13,799
Machinery and equipment		25,849			25,488
Furniture, fixtures and other		4,670			4,530
		44,365			43,817
Accumulated depreciation		(23,643	)		(22,617	)
	$	20,722		$	21,200

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.

	September 30, 2021			December 31, 2020
Railroad:
Land, track structure and other roadway	$	65,167		$	63,824
Locomotives, freight cars and other equipment		13,784			13,523
Construction in progress		1,030			916
		79,981			78,263
Accumulated depreciation		(14,641	)		(13,175	)
		65,340			65,088
Utilities and energy:
Utility generation, transmission and distribution systems		89,026			86,730
Interstate natural gas pipeline assets		17,044			16,667
Independent power plants and other assets		13,009			12,671
Construction in progress		4,343			3,308
		123,422			119,376
Accumulated depreciation		(35,361	)		(33,248	)
		88,061			86,128
	$	153,401		$	151,216

Depreciation expense for the first nine months of 2021 and 2020 is summarized below (in millions).

	First Nine Months
	2021		2020
Insurance and other	$	1,725	$	1,725
Railroad, utilities and energy		4,485		4,105
	$	6,210	$	5,830

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. A summary of equipment held for lease follows (in millions).

	September 30, 2021			December 31, 2020
Railcars	$	9,482		$	9,402
Aircraft		8,852			8,204
Other		5,031			4,868
		23,365			22,474
Accumulated depreciation		(8,613	)		(7,873	)
	$	14,752		$	14,601

Depreciation expense for equipment held for lease in the first nine months was $861 million in 2021 and $900 million in 2020. Fixed and variable operating lease revenues for the third quarter and first nine months of 2021 and 2020 are summarized below (in millions).

	Third Quarter				First Nine Months
	2021		2020		2021		2020
Fixed lease revenue	$	1,151	$	1,047	$	3,318	$	3,205
Variable lease revenue		414		269		1,018		700
	$	1,565	$	1,316	$	4,336	$	3,905