Stock Analysis on Net

Union Pacific Corp. (NYSE:UNP)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Union Pacific Corp., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 5,426 5,344 5,339 5,246 5,276
Rail and other track material 18,837 18,419 17,980 17,620 17,178
Ties 11,985 11,676 11,364 11,051 10,693
Ballast 6,345 6,222 6,070 5,926 5,752
Other roadway 23,175 22,411 21,593 21,030 20,331
Road 60,342 58,728 57,007 55,627 53,954
Locomotives 9,295 9,166 9,371 9,375 9,467
Freight cars 2,765 2,562 2,227 2,118 2,083
Work equipment and other 1,344 1,253 1,161 1,107 1,081
Equipment 13,404 12,981 12,759 12,600 12,631
Technology and other 1,388 1,254 1,209 1,199 1,136
Construction in progress 1,173 948 961 748 1,249
Properties, cost 81,733 79,255 77,275 75,420 74,246
Accumulated depreciation (24,335) (23,217) (22,404) (21,259) (20,330)
Properties, net book value 57,398 56,038 54,871 54,161 53,916

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Properties, cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Union Pacific Corp. properties, cost increased from 2021 to 2022 and from 2022 to 2023.
Properties, net book value Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Union Pacific Corp. properties, net book value increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

Union Pacific Corp., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 31.89% 31.41% 31.14% 30.29% 29.48%
Estimated total useful life (years) 33 33 33 32 31
Estimated age, time elapsed since purchase (years) 10 10 10 10 9
Estimated remaining life (years) 22 23 22 22 22

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Union Pacific Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Union Pacific Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Union Pacific Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life Union Pacific Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 24,335 23,217 22,404 21,259 20,330
Properties, cost 81,733 79,255 77,275 75,420 74,246
Land 5,426 5,344 5,339 5,246 5,276
Asset Age Ratio
Average age1 31.89% 31.41% 31.14% 30.29% 29.48%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Properties, cost – Land)
= 100 × 24,335 ÷ (81,7335,426) = 31.89%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Union Pacific Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Properties, cost 81,733 79,255 77,275 75,420 74,246
Land 5,426 5,344 5,339 5,246 5,276
Depreciation expense 2,318 2,246 2,208 2,210 2,216
Asset Age Ratio (Years)
Estimated total useful life1 33 33 33 32 31

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated total useful life = (Properties, cost – Land) ÷ Depreciation expense
= (81,7335,426) ÷ 2,318 = 33

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Union Pacific Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 24,335 23,217 22,404 21,259 20,330
Depreciation expense 2,318 2,246 2,208 2,210 2,216
Asset Age Ratio (Years)
Time elapsed since purchase1 10 10 10 10 9

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 24,335 ÷ 2,318 = 10

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Union Pacific Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Properties, net book value 57,398 56,038 54,871 54,161 53,916
Land 5,426 5,344 5,339 5,246 5,276
Depreciation expense 2,318 2,246 2,208 2,210 2,216
Asset Age Ratio (Years)
Estimated remaining life1 22 23 22 22 22

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated remaining life = (Properties, net book value – Land) ÷ Depreciation expense
= (57,3985,426) ÷ 2,318 = 22

Asset age ratio Description The company
Estimated remaining life Union Pacific Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.