Berkshire Hathaway 2012 Annual Report Download - page 47

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Notes to Consolidated Financial Statements (Continued)
(10) Property, plant and equipment
Property, plant and equipment of our insurance and other businesses is comprised of the following (in millions).
Ranges of
estimated useful life
December 31,
2012 2011
Land ................................................................ — $ 1,048 $ 940
Buildings and improvements ............................................. 2–40years 6,074 5,429
Machinery and equipment ............................................... 3–20years 15,436 13,589
Furniture, fixtures and other .............................................. 2–20years 2,736 2,397
Assets held for lease .................................................... 12–30years 6,731 5,997
32,025 28,352
Accumulated depreciation ............................................... (12,837) (10,175)
$ 19,188 $ 18,177
Assets held for lease consist primarily of railroad tank cars, intermodal tank containers and other equipment in the
transportation and equipment services businesses. As of December 31, 2012, the minimum future lease rentals to be received on
the equipment lease fleet (including rail cars leased from others) were as follows (in millions): 2013 – $730; 2014 – $574;
2015 – $436; 2016 – $314; 2017 – $193; and thereafter – $245.
Property, plant and equipment of our railroad and our utilities and energy businesses is comprised of the following
(in millions).
Ranges of
estimated useful life
December 31,
2012 2011
Railroad:
Land ............................................................ — $ 5,950 $ 5,925
Track structure and other roadway .................................... 5–100years 38,255 36,760
Locomotives, freight cars and other equipment ........................... 5–37years 6,528 5,533
Construction in progress ............................................ — 963 885
Utilities and energy:
Utility generation, distribution and transmission system .................... 5–80years 42,682 40,180
Interstate pipeline assets ............................................ 3–80years 6,354 6,245
Independent power plants and other assets .............................. 3–30years 1,860 1,106
Construction in progress ............................................ — 2,647 1,559
105,239 98,193
Accumulated depreciation ............................................... (17,555) (15,979)
$ 87,684 $ 82,214
Railroad property, plant and equipment includes the land, other roadway, track structure and rolling stock (primarily
locomotives and freight cars) of BNSF. The utility generation, distribution and transmission system and interstate pipeline
assets are the regulated assets of public utility and natural gas pipeline subsidiaries.
(11) Derivative contracts
Derivative contracts are used primarily in our finance and financial products and energy businesses. Substantially all of the
derivative contracts of our finance and financial products businesses are not designated as hedges for financial reporting
purposes. Changes in the fair values of such contracts are reported in earnings as derivative gains/losses. We entered into these
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