Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Union Pacific Corp. (NYSE:UNP)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

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

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Land 5,276  5,264  5,258  5,220  5,195 
Rail and other track material 17,178  16,785  16,327  15,845  15,236 
Ties 10,693  10,409  10,132  9,812  9,439 
Ballast 5,752  5,561  5,406  5,242  5,024 
Other roadway 20,331  19,584  18,972  18,138  17,374 
Road 53,954  52,339  50,837  49,037  47,073 
Locomotives 9,467  9,792  9,686  9,692  9,027 
Freight cars 2,083  2,229  2,255  2,243  2,203 
Work equipment and other 1,081  1,040  936  905  897 
Equipment 12,631  13,061  12,877  12,840  12,127 
Technology and other 1,136  1,117  1,105  974  919 
Construction in progress 1,249  1,024  736  987  1,250 
Properties, cost 74,246  72,805  70,813  69,058  66,564 
Accumulated depreciation (20,330) (20,126) (19,208) (18,669) (17,698)
Properties, net book value 53,916  52,679  51,605  50,389  48,866 

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

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.’s properties, cost increased from 2017 to 2018 and from 2018 to 2019.
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.’s properties, net book value increased from 2017 to 2018 and from 2018 to 2019.

Asset Age Ratios (Summary)

Union Pacific Corp., asset age ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 29.48% 29.80% 29.30% 29.24% 28.84%
Estimated total useful life (years) 31 31 31 31 31
Estimated age, time elapsed since purchase (years) 9 9 9 9 9
Estimated remaining life (years) 22 22 22 22 22

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Union Pacific Corp.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Union Pacific Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Union Pacific Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Estimated remaining life Union Pacific Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Average Age

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 20,330  20,126  19,208  18,669  17,698 
Properties, cost 74,246  72,805  70,813  69,058  66,564 
Land 5,276  5,264  5,258  5,220  5,195 
Asset Age Ratio
Average age1 29.48% 29.80% 29.30% 29.24% 28.84%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Properties, cost – Land)
= 100 × 20,330 ÷ (74,246 – 5,276) = 29.48%

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Union Pacific Corp.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Properties, cost 74,246  72,805  70,813  69,058  66,564 
Land 5,276  5,264  5,258  5,220  5,195 
Depreciation expense 2,216  2,191  2,105  2,038  2,012 
Asset Age Ratio (Years)
Estimated total useful life1 31 31 31 31 31

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 Estimated total useful life = (Properties, cost – Land) ÷ Depreciation expense
= (74,246 – 5,276) ÷ 2,216 = 31

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Union Pacific Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 20,330  20,126  19,208  18,669  17,698 
Depreciation expense 2,216  2,191  2,105  2,038  2,012 
Asset Age Ratio (Years)
Time elapsed since purchase1 9 9 9 9 9

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 20,330 ÷ 2,216 = 9

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Union Pacific Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Properties, net book value 53,916  52,679  51,605  50,389  48,866 
Land 5,276  5,264  5,258  5,220  5,195 
Depreciation expense 2,216  2,191  2,105  2,038  2,012 
Asset Age Ratio (Years)
Estimated remaining life1 22 22 22 22 22

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 Estimated remaining life = (Properties, net book value – Land) ÷ Depreciation expense
= (53,916 – 5,276) ÷ 2,216 = 22

Asset age ratio Description The company
Estimated remaining life Union Pacific Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.