Union Pacific Corp. (NYSE:UNP)

The financial data for property, plant, and equipment over the five-year period reveals several noteworthy trends and patterns.

Land

The valuation of land shows a steady but modest increase year over year, growing from $5,246 million in 2020 to $5,441 million in 2024. This represents a gradual expansion or appreciation of land assets.

Rail and Other Track Material

This category exhibits consistent growth, increasing from $17,620 million in 2020 to $19,283 million in 2024. The steady upward trend suggests ongoing investment or accumulation of track-related assets.

Ties

Investment in ties also increases annually, moving from $11,051 million to $12,358 million over the observed period. The growth rate aligns closely with that of rail materials, affirming sustained maintenance or expansion efforts.

Ballast

Ballast values rise moderately from $5,926 million to $6,495 million, indicating steady asset enhancement in this infrastructure component.

Other Roadway

This category demonstrates consistent expansion from $21,030 million in 2020 to $23,913 million in 2024, pointing to continual upgrades or additions to roadway-related assets.

Road

The aggregate value of road assets increases from $55,627 million to $62,049 million, reflecting ongoing capital expenditures and asset growth in this category.

Locomotives

Locomotive assets slightly decline from $9,375 million in 2020 to $9,166 million in 2022, followed by a recovery to $9,517 million in 2024. This pattern may suggest phased replacements, retirements, or recalibrations in asset valuation.

Freight Cars

Freight cars experience significant growth from $2,118 million to $3,011 million, indicating substantial investment or expansion in rolling stock capabilities over the timeframe.

Work Equipment and Other

Values increase steadily from $1,107 million in 2020 to $1,344 million in 2023 but then decrease to $1,222 million in 2024, suggesting possible disposals or reclassification of certain equipment near the end of the period.

Equipment

Overall equipment values rise gradually from $12,600 million to $13,750 million, indicating steady augmentations in equipment assets.

Technology and Other

There is moderate growth in technology and miscellaneous assets, from $1,199 million to $1,431 million, reflecting incremental technological investments.

Construction in Progress

This category fluctuates, starting at $748 million, peaking at $1,173 million in 2023, and slightly decreasing to $1,169 million in 2024. The trend suggests active ongoing projects with variable completion rates.

Properties, Cost

Total property costs rise consistently from $75,420 million to $83,840 million, indicating continuous capital additions and asset accumulation.

Accumulated Depreciation

Accumulated depreciation increases steadily in magnitude, from -$21,259 million in 2020 to -$25,497 million in 2024, reflecting the aging of assets and usage over time.

Properties, Net Book Value

The net book value of properties grows steadily from $54,161 million to $58,343 million, demonstrating that asset additions and improvements outpace depreciation across the period.

In summary, the data highlights a consistent pattern of asset growth and reinvestment in infrastructure and equipment. While some categories like locomotives and work equipment show occasional declines or variability, the overall momentum is toward asset base expansion and modernization. Accumulated depreciation increases in line with asset aging but does not offset the overall asset growth, resulting in an increasing net book value. Construction in progress values suggest ongoing capital projects, supporting continued development of the asset base.

Average age ratio

The average age ratio shows a consistent upward trend over the five-year period, increasing from 30.29% in 2020 to 32.52% in 2024. This indicates a gradual aging of the property, plant, and equipment assets over time.

Estimated total useful life

The estimated total useful life of the assets remained stable at 33 years from 2021 through 2024, with a slight increase from 32 years in 2020. This suggests a revision in the assessment of asset longevity, stabilizing at 33 years in the subsequent years.

Estimated age, time elapsed since purchase

The estimated age of the assets remained steady at 10 years from 2020 through 2023, followed by an increase to 11 years in 2024. This reflects the natural passage of time and the aging of the asset base.

Estimated remaining life

The estimated remaining life fluctuated slightly, starting at 22 years in 2020 and 2021, increasing marginally to 23 years in 2022, then returning to 22 years in 2023 and 2024. This indicates a relatively stable expectation of the remaining useful life of the assets despite minor adjustments.

Accumulated Depreciation

The accumulated depreciation shows a consistent upward trend over the five-year period. It increased from $21,259 million at the end of 2020 to $25,497 million by the end of 2024, indicating continuous depreciation expenses and ongoing asset usage.

Properties, Cost

The total cost of properties also steadily increased each year, rising from $75,420 million in 2020 to $83,840 million in 2024. This suggests ongoing investments and capital expenditures in acquiring or upgrading property, plant, and equipment.

Land

The value attributed specifically to land increased modestly from $5,246 million in 2020 to $5,441 million in 2024. The relatively small increment compared to overall property costs suggests that most capital investment is likely allocated to other property types such as buildings or equipment.

Average Age Ratio

The average age ratio, expressed as a percentage, steadily increased from 30.29% in 2020 to 32.52% in 2024. This indicates that, on average, the property, plant, and equipment are aging gradually, which may reflect the company's capital investment and asset replacement policies or the aging of older assets in the portfolio.

Properties, cost

The cost of properties demonstrated a consistent upward trend over the period analyzed. Starting at $75,420 million in 2020, it increased steadily each year, reaching $83,840 million by the end of 2024. This progression suggests ongoing investments or acquisitions in property, plant, and equipment, reflecting growth or maintenance activities.

Land

The value of land showed a relatively stable pattern. It increased marginally from $5,246 million in 2020 to $5,441 million in 2024. This slight rise might indicate occasional land purchases or revaluations, though the changes are minor compared to overall property cost increases.

Depreciation Expense

Depreciation expense remained fairly consistent, with a slight upward trajectory. It was $2,210 million in 2020 and increased gradually to $2,398 million by 2024. This incremental rise aligns with the growing value of property, plant, and equipment, suggesting a proportional increase in asset usage or aging.

Estimated Total Useful Life

The estimated total useful life showed stability at 33 years for most years after an initial figure of 32 years in 2020. This suggests that the company maintains a consistent estimate for asset lifespan, which could imply steady asset management policies and assumptions.

The accumulated depreciation of the company's property, plant, and equipment (PP&E) shows a consistent upward trend over the five-year period from 2020 to 2024. Specifically, the accumulated depreciation increased from $21,259 million at the end of 2020 to $25,497 million by the end of 2024. This steady rise reflects the ongoing allocation of depreciation expense and the aging of assets.

Depreciation expense, representing the annual expense related to the use of PP&E, remains relatively stable throughout the period, with a slight upward trend. The expense was $2,210 million in 2020 and increased modestly to $2,398 million by 2024. The small incremental increase in depreciation expense suggests consistent asset usage and possibly minor additions or upgrades in the asset base without significant changes in depreciation policy.

The time elapsed since purchase remains at 10 years from 2020 through 2023 and then increases to 11 years in 2024. This indicates that the average age of the assets is relatively stable but aging slowly, which may imply limited new acquisitions or replacements within this period.

Summary insights:

- The steady increase in accumulated depreciation aligns with regular asset depreciation and suggests a stable asset base aging over time.

- The relatively constant depreciation expense implies a consistent approach to asset utilization and depreciation methodology.

- The slow increase in the average age of assets indicates minimal significant investment in new PP&E or retirement of old assets during this timeframe.

Properties, Net Book Value

The net book value of properties showed a consistent upward trend from 54,161 million US dollars in 2020 to 58,343 million US dollars in 2024. This steady increase suggests ongoing investment in property, plant, and equipment, reflecting sustained asset growth over the period.

Land

The value of land held increased marginally each year, from 5,246 million US dollars in 2020 to 5,441 million US dollars in 2024. The relatively small changes indicate that land assets remained largely stable, with slight acquisitions or revaluations contributing to incremental growth.

Depreciation Expense

Depreciation expense remained relatively stable around the 2,200 million US dollars mark initially, with a gradual increase to 2,398 million US dollars by 2024. This upward movement in depreciation aligns with the rising net book value of properties, as larger asset bases typically incur higher depreciation charges.

Estimated Remaining Life

The estimated remaining life of the assets remained consistent at 22 years for the majority of the period, with a brief increase to 23 years in 2022 before returning to 22 years in subsequent years. This suggests stable asset longevity expectations without significant changes in the estimated useful life.