Quarterly report pursuant to Section 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT

v3.19.1
PROPERTY, PLANT AND EQUIPMENT
 3 Months Ended
Mar. 31, 2019
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of March 31, 2019 and December 31, 2018 consists of the following (in millions):
 
2019
 
2018
Vehicles
$
9,936

 
$
9,820

Aircraft
17,625

 
17,499

Land
2,056

 
2,000

Buildings
4,844

 
4,808

Building and leasehold improvements
4,461

 
4,323

Plant equipment
11,899

 
11,833

Technology equipment
2,097

 
2,093

Construction-in-progress
2,447

 
2,112

 
55,365

 
54,488

Less: Accumulated depreciation and amortization
(28,118
)
 
(27,912
)
 
$
27,247

 
$
26,576


 
As part of our ongoing investment in transformation, in 2018 we made prospective revisions to our estimates of useful lives for building improvements, vehicles and plant equipment which in general had the effect of lengthening the useful lives of these categories. Additionally, we made capital investments in property, plant and equipment, net of disposals and fully-depreciated assets, that resulted in an increase in depreciation expense of $90 million and a decrease to net income of $69 million or $0.08 per share on a basic and diluted basis in the first quarter of 2019. This increase was offset by the effect of lengthening the useful lives of various asset categories which resulted in a decrease in depreciation expense and an increase in operating income of $127 million and an increase to net income of $98 million or $0.11 per share on a basic and diluted basis in the first quarter of 2019. Combining both impacts resulted in a net decrease of $37 million to depreciation expense, and an increase to net income of $29 million or $0.03 per share on both a basic and diluted basis in the first quarter of 2019.
We continually monitor our aircraft fleet utilization in light of current and projected volume levels, aircraft fuel prices and other factors. Additionally, we monitor all other property, plant and equipment categories for any indicators that the carrying value of the assets may not be recoverable. No impairment charges on property, plant and equipment were recorded during the three months ended March 31, 2019 or 2018.