Union Pacific 2011 Annual Report Download - page 74

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74
11. Properties
The following tables list the major categories of property and equipment, as well as the weighted-average
composite depreciation rate for each category:
Millions, Except Percentages Accumulated Net Boo
k
Depreciation
As of December 31, 2011 Cos
t
Depreciation Value Rate for 2011
Land $ 5,098 $ N/A $ 5,098 N/A
Road:
Rail and other track material [a] 12,461 4,592 7,869 3.3%
Ties 7,987 2,028 5,959 2.9%
Ballast 4,178 1,008 3,170 3.0%
Other [b] 14,118 2,502 11,616 2.6%
Total road 38,744 10,130 28,614 2.9%
Equipment:
Locomotives 6,502 3,003 3,499 5.7%
Freight cars 1,957 1,061 896 3.5%
Work equipment and other 529 57 472 6.5%
Total equipment 8,988 4,121 4,867 5.3%
Technology and other 610 259 351 12.3%
Construction in progress 1,004 - 1,004 N/A
Total $ 54,444 $ 14,510 $ 39,934 N/A
Millions, Except Percentages Accumulated Net Boo
k
Depreciation
As of December 31, 2010 Cos
t
Depreciation Value Rate for 201
0
Land $ 4,984 $ N/A $ 4,984 N/A
Road:
Rail and other track material [a] 11,992 4,458 7,534 3.1%
Ties 7,631 1,858 5,773 2.8%
Ballast 4,011 944 3,067 3.0%
Other [b] 13,634 2,376 11,258 2.5%
Total road 37,268 9,636 27,632 2.8%
Equipment:
Locomotives 6,136 2,699 3,437 5.6%
Freight cars 1,886 1,040 846 3.6%
Work equipment and other 305 39 266 4.0%
Total equipment 8,327 3,778 4,549 5.1%
Technology and other 565 241 324 13.2%
Construction in progress 764 - 764 N/A
Total $ 51,908 $ 13,655 $ 38,253 N/A
[a] Includes a weighted-average composite depreciation rate for rail in high-density traffic corridors as discussed below.
[b] Other includes grading, bridges and tunnels, signals, buildings, and other road assets.
Property and Depreciation – Our railroad operations are highly capital intensive, and our large base of
homogeneous, network-type assets turns over on a continuous basis. Each year we develop a capital
program for the replacement of assets and for the acquisition or construction of assets that enable us to
enhance our operations or provide new service offerings to customers. Assets purchased or constructed
throughout the year are capitalized if they meet applicable minimum units of property criteria. Properties
and equipment are carried at cost and are depreciated on a straight-line basis over their estimated
service lives, which are measured in years, except for rail in high-density traffic corridors (i.e., all rail lines
except for those subject to abandonment, yard and switching tracks, and electronic yards) for which lives
are measured in millions of gross tons per mile of track. We use the group method of depreciation in