AccumulatedNet BookDepreciation
December 31, 2025CostDepreciationValue
Rate (1)
 ($ in millions)
Land$4,172 $— $4,172                 —
Roadway:    
Rail and other track material8,702 (2,169)6,533 2.48%
Ties6,694 (1,956)4,738 3.33%
Ballast3,452 (1,069)2,383 2.70%
Construction in process823 — 823                 —
Other roadway15,526 (4,934)10,592 2.72%
Total roadway35,197 (10,128)25,069  
Equipment:    
Locomotives6,408 (2,348)4,060 3.67%
Freight cars2,724 (1,018)1,706 2.31%
Computers and software1,085 (491)594 9.89%
Construction in process158 — 158                 —
Other equipment1,262 (554)708 4.70%
Total equipment11,637 (4,411)7,226  
Other property90 (78)12 2.53%
Total properties$51,096 $(14,617)$36,479  
 
  AccumulatedNet BookDepreciation
December 31, 2024CostDepreciationValue
Rate (1)
 ($ in millions)
Land$4,125 $— $4,125                 —
Roadway:    
Rail and other track material8,402 (2,098)6,304 2.44%
Ties6,450 (1,860)4,590 3.35%
Ballast3,339 (1,005)2,334 2.73%
Construction in process680 — 680                 —
Other roadway15,038 (4,589)10,449 2.73%
Total roadway33,909 (9,552)24,357  
Equipment:    
Locomotives6,242 (2,180)4,062 3.66%
Freight cars2,733 (1,021)1,712 2.45%
Computers and software1,149 (570)579 9.88%
Construction in process236 — 236                 —
Other equipment1,304 (558)746 4.60%
Total equipment11,664 (4,329)7,335  
Other property90 (76)14 2.48%
Total properties$49,788 $(13,957)$35,831  

(1)Composite annual depreciation rate for the underlying assets, excluding the effects of the amortization of any deficiency (or excess) that resulted from our depreciation studies.

Historical Timeline

Fiscal YearFiled
2025Feb 9, 2026Showing above
2024Feb 10, 2025
2023Feb 5, 2024
2022Feb 3, 2023
2021Feb 4, 2022

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.