Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 06, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-11535 | |
Entity Registrant Name | BURLINGTON NORTHERN SANTA FE, LLC | |
Entity Incorporation, State Country Name | DE | |
Entity Tax Identification Number | 27-1754839 | |
Entity Address, Address Line One | 2650 Lou Menk Drive | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76131 | |
City Area Code | 800 | |
Local Phone Number | 795-2673 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000934612 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 5,847 | $ 6,693 | $ 17,694 | $ 19,301 |
Operating expenses: | ||||
Compensation and benefits | 1,406 | 1,496 | 4,129 | 3,968 |
Fuel | 863 | 1,272 | 2,660 | 3,409 |
Depreciation and amortization | 657 | 636 | 1,957 | 1,883 |
Purchased services | 615 | 670 | 1,836 | 2,008 |
Equipment rents | 171 | 180 | 511 | 544 |
Materials and other | 329 | 331 | 1,129 | 961 |
Total operating expenses | 4,041 | 4,585 | 12,222 | 12,773 |
Operating income | 1,806 | 2,108 | 5,472 | 6,528 |
Interest expense | 269 | 258 | 782 | 767 |
Other (income) expense, net | (71) | (34) | (182) | (83) |
Income before income taxes | 1,608 | 1,884 | 4,872 | 5,844 |
Income Tax Expense (Benefit) | 387 | 442 | 1,140 | 1,367 |
Net income | $ 1,221 | $ 1,442 | $ 3,732 | $ 4,477 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,221 | $ 1,442 | $ 3,732 | $ 4,477 |
Other comprehensive income: | ||||
Change in pension and retiree health and welfare benefits, net of tax | (7) | 1 | (20) | 3 |
Change in accumulated other comprehensive income (loss) of equity method investees | 0 | 5 | (1) | 11 |
Other comprehensive income (loss), net of tax | (7) | 6 | (21) | 14 |
Total comprehensive income | $ 1,214 | $ 1,448 | $ 3,711 | $ 4,491 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,972 | $ 1,938 |
Accounts receivable, net | 1,395 | 1,404 |
Materials and supplies | 1,098 | 952 |
Other current assets | 237 | 137 |
Total current assets | 5,702 | 4,431 |
Property and equipment, net of accumulated depreciation of $19,046 and $17,899, respectively | 68,729 | 67,225 |
Goodwill | 16,396 | 14,852 |
Operating lease right-of-use assets | 1,161 | 1,233 |
Other assets | 2,990 | 4,870 |
Total assets | 94,978 | 92,611 |
Current liabilities: | ||
Accounts payable and other current liabilities | 4,064 | 4,447 |
Long-term debt and finance leases due within one year | 1,260 | 1,562 |
Total current liabilities | 5,324 | 6,009 |
Long-term debt and finance leases | 22,245 | 21,890 |
Deferred income taxes | 15,306 | 15,110 |
Operating lease liabilities | 583 | 680 |
Casualty and environmental liabilities | 362 | 385 |
Pension and retiree health and welfare liability | 193 | 205 |
Other liabilities | 1,118 | 1,096 |
Total liabilities | 45,131 | 45,375 |
Commitments and contingencies (see Note 6) | ||
Equity: | ||
Member’s equity | 49,674 | 47,042 |
Accumulated other comprehensive income (loss) | 173 | 194 |
Total equity | 49,847 | 47,236 |
Total liabilities and equity | $ 94,978 | $ 92,611 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 19,046 | $ 17,899 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income | $ 3,732 | $ 4,477 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,957 | 1,883 |
Deferred income taxes | 202 | 64 |
Other, net | (127) | (151) |
Changes in current assets and liabilities: | ||
Accounts receivable, net | 9 | (239) |
Materials and supplies | (110) | (133) |
Other current assets | 26 | 40 |
Accounts payable and other current liabilities | (611) | 249 |
Net cash provided by operating activities | 5,078 | 6,190 |
Investing Activities | ||
Capital expenditures excluding equipment | (2,606) | (2,415) |
Acquisition of equipment | (252) | (66) |
Purchases of investments and investments in time deposits | (24) | (23) |
Other, net | (108) | (18) |
Net cash used in investing activities | (2,990) | (2,522) |
Financing Activities | ||
Proceeds from issuance of long-term debt | 1,600 | 1,000 |
Payments on long-term debt and finance leases | (1,539) | (909) |
Cash distributions | (1,100) | (3,600) |
Other, net | (15) | (14) |
Net cash used in financing activities | (1,054) | (3,523) |
Increase (decrease) in cash and cash equivalents | 1,034 | 145 |
Cash and cash equivalents: | ||
Beginning of period | 1,938 | 1,758 |
End of period | 2,972 | 1,903 |
Supplemental Cash Flow Information | ||
Interest paid, net of amounts capitalized | 800 | 802 |
Capital investments accrued but not yet paid | 406 | 293 |
Income taxes paid, net of refunds | 1,174 | 1,447 |
Non-cash asset financing | $ 0 | $ 7 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Member’s Equity | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2021 | $ 46,449 | $ 46,096 | $ 353 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash distributions | (1,000) | (1,000) | 0 |
Comprehensive income (loss), net of tax | 1,376 | 1,371 | 5 |
Ending Balance at Mar. 31, 2022 | 46,825 | 46,467 | 358 |
Beginning Balance at Dec. 31, 2021 | 46,449 | 46,096 | 353 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash distributions | (3,600) | ||
Comprehensive income (loss), net of tax | 4,491 | ||
Ending Balance at Sep. 30, 2022 | 47,340 | 46,973 | 367 |
Beginning Balance at Mar. 31, 2022 | 46,825 | 46,467 | 358 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash distributions | (1,100) | (1,100) | 0 |
Comprehensive income (loss), net of tax | 1,667 | 1,664 | 3 |
Ending Balance at Jun. 30, 2022 | 47,392 | 47,031 | 361 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash distributions | (1,500) | (1,500) | 0 |
Comprehensive income (loss), net of tax | 1,448 | 1,442 | 6 |
Ending Balance at Sep. 30, 2022 | 47,340 | 46,973 | 367 |
Beginning Balance at Dec. 31, 2022 | 47,236 | 47,042 | 194 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Comprehensive income (loss), net of tax | 1,240 | 1,247 | (7) |
Ending Balance at Mar. 31, 2023 | 48,476 | 48,289 | 187 |
Beginning Balance at Dec. 31, 2022 | 47,236 | 47,042 | 194 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash distributions | (1,100) | ||
Comprehensive income (loss), net of tax | 3,711 | ||
Ending Balance at Sep. 30, 2023 | 49,847 | 49,674 | 173 |
Beginning Balance at Mar. 31, 2023 | 48,476 | 48,289 | 187 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash distributions | (1,100) | (1,100) | 0 |
Comprehensive income (loss), net of tax | 1,257 | 1,264 | (7) |
Ending Balance at Jun. 30, 2023 | 48,633 | 48,453 | 180 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Comprehensive income (loss), net of tax | 1,214 | 1,221 | (7) |
Ending Balance at Sep. 30, 2023 | $ 49,847 | $ 49,674 | $ 173 |
Accounting Policies and Interim
Accounting Policies and Interim Results | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Policies and Interim Results | Accounting Policies and Interim Results The Consolidated Financial Statements should be read in conjunction with Burlington Northern Santa Fe, LLC’s Annual Report on Form 10-K for the year ended December 31, 2022, including the financial statements and notes thereto. Burlington Northern Santa Fe, LLC (Registrant) is a holding company that conducts no operating activities and owns no significant assets other than through its interests in its subsidiaries. The Consolidated Financial Statements include the accounts of the Registrant and its subsidiaries (collectively, BNSF or Company), all of which are separate legal entities. The Registrant’s principal operating subsidiary is BNSF Railway Company (BNSF Railway). All intercompany accounts and transactions have been eliminated. On February 12, 2010, Berkshire Hathaway Inc., a Delaware corporation (Berkshire), acquired 100 percent of the outstanding shares of Burlington Northern Santa Fe Corporation common stock that it did not already own. The acquisition was completed through the merger of a Berkshire wholly-owned merger subsidiary and Burlington Northern Santa Fe Corporation with the surviving entity renamed Burlington Northern Santa Fe, LLC. Earnings per share data is not presented because BNSF has only one holder of its membership interests. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the entire year. In the opinion of management, the unaudited financial statements reflect all adjustments (consisting of only normal recurring adjustments, except as disclosed) necessary for the fair statement of BNSF’s consolidated financial position as of September 30, 2023, and the results of operations for the three and nine months ended September 30, 2023 and 2022 in accordance with generally accepted accounting principles in the United States. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers The Company disaggregates revenue from contracts with customers based on the characteristics of the services provided and the types of products transported (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Consumer Products $ 1,982 $ 2,418 $ 5,744 $ 6,951 Agricultural Products 1,220 1,336 3,988 4,081 Industrial Products 1,458 1,468 4,285 4,223 Coal 932 1,101 2,897 2,989 Total freight revenues 5,592 6,323 16,914 18,244 Non-rail logistics subsidiary 128 163 383 540 Accessorial and other 127 207 397 517 Total other revenues 255 370 780 1,057 Total operating revenues $ 5,847 $ 6,693 $ 17,694 $ 19,301 Contract assets and liabilities are immaterial. Receivables from contracts with customers is a component of accounts receivable, net on the Consolidated Balance Sheets. As of September 30, 2023 and December 31, 2022, $1.1 billion and $1.2 billion, respectively, represented net receivables from contracts with customers. Remaining performance obligations primarily consist of in-transit freight revenues, which will be recognized in the next reporting period. As of September 30, 2023 and December 31, 2022, remaining performance obligations were $249 million and $293 million, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net consists of freight and other receivables, reduced by an allowance for credit losses which is based upon expected collectability. As of September 30, 2023 and December 31, 2022, $43 million and $32 million, respectively, of such allowances had been recorded. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combinations On March 8, 2023, the Surface Transportation Board issued a decision approving the discontinuance of service by Montana Rail Link, Inc. (MRL) over that certain line owned by BNSF Railway and leased to MRL, with BNSF Railway to resume providing service over the line. This decision became effective April 7, 2023. As a result of the approved lease termination, consideration exchanged between BNSF Railway and MRL has been accounted for in accordance with ASC Topic 805 (ASC 805). The amount allocable to goodwill under ASC 805 is deductible for U.S. federal income tax purposes. The allocation of the transaction price to assets received is based upon currently available information and is subject to change as preliminary values are reviewed. There were no changes to the purchase price allocation in the third quarter of 2023. Any adjustments to the allocation will be made as soon as practicable but no later than one year from the effective date of the transaction. The preliminary allocation of total consideration to the fair values of the assets is as follows (in millions): April 7, Property and equipment $ 500 Materials and supplies 37 Goodwill 1,576 Fair value of assets $ 2,113 Property and equipment of $500 million includes road and track assets, work equipment, and buildings. As a result of the additional goodwill recorded, total goodwill was $16.4 billion as of September 30, 2023. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Notes and Debentures In May 2023, the Board of Directors authorized an additional $3.0 billion of debt securities that may be issued pursuant to the debt shelf registration statement filed with the Securities and Exchange Commission (SEC). In June 2023, the Registrant issued $1.6 billion of 5.200 percent debentures due April 15, 2054. The net proceeds from the sale of the debentures will be used for general corporate purposes, which may include but are not limited to working capital, capital expenditures, repayment of outstanding indebtedness, and distributions. As of September 30, 2023, $2.95 billion remained authorized by the Board of Directors to be issued through the SEC debt shelf offering process. The Registrant is required to maintain certain financial covenants in conjunction with $500 million of certain issued and outstanding junior subordinated notes. As of September 30, 2023, the Registrant was in compliance with these financial covenants. Fair Value of Debt Instruments As of September 30, 2023 and December 31, 2022, the fair value of BNSF’s debt, excluding finance leases, was $20.5 billion and $21.5 billion, respectively, while the book value, which also excludes finance leases, was $23.4 billion and $23.3 billion, respectively. The fair value of BNSF’s debt is primarily based on market value price models using observable market-based data for the same or similar issues, or on the estimated rates that would be offered to BNSF for debt of the same remaining maturities (Level 2 inputs). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Personal Injury BNSF’s personal injury liability includes the cost of claims for employee work-related injuries, third-party claims, and asbestos claims. BNSF records a liability for asserted and unasserted claims when the expected loss is both probable and reasonably estimable. Because of the uncertainty of the timing of future payments, the liability is undiscounted. Defense and processing costs, which are recorded on an as-reported basis, are not included in the recorded liability. Expense accruals and adjustments are classified as materials and other in the Consolidated Statements of Income. Personal injury claims by BNSF Railway employees are subject to the provisions of the Federal Employers’ Liability Act (FELA) rather than state workers’ compensation laws. Resolution of these cases under FELA’s fault-based system requires either a finding of fault by a jury or an out of court settlement. Third-party claims include claims by non-employees for compensatory damages and may, from time to time, include requests for punitive damages or treatment of the claim as a class action. BNSF estimates its personal injury liability claims and expense using standard actuarial methodologies based on the covered population, activity levels and trends in frequency, and the costs of covered injuries. The Company monitors actual experience against the forecasted number of claims to be received, the forecasted number of claims closing with payment, and expected claim payments and records adjustments as new events or changes in estimates develop. The following table summarizes the activity in the Company’s accrued obligations for personal injury claims (in millions): Nine Months Ended September 30, 2023 2022 Beginning balance $ 263 $ 296 Accruals / changes in estimates 59 29 Payments (74) (60) Ending balance $ 248 $ 265 Current portion of ending balance $ 90 $ 90 The amount recorded by the Company for the personal injury liability is based upon the best information currently available. Because of the uncertainty surrounding the ultimate outcome of personal injury claims, it is reasonably possible that future costs to resolve these claims may be different from the recorded amounts. The Company estimates that costs to resolve the liability may range from approximately $205 million to $320 million. Although the final outcome of these personal injury matters cannot be predicted with certainty, it is the opinion of BNSF that none of these items, when finally resolved, will have a material adverse effect on the Company’s financial position or liquidity. However, the occurrence of a number of these items in the same period could have a material adverse effect on the results of operations in a particular quarter or fiscal year. Environmental BNSF is subject to extensive federal, state, and local environmental regulation. The Company’s operating procedures include practices to protect the environment from the risks inherent in railroad operations, which frequently involve transporting chemicals and other hazardous materials. Additionally, many of BNSF’s land holdings are or have been used for industrial or transportation-related purposes or leased to commercial or industrial companies whose activities may have resulted in discharges onto the property. Under federal (in particular, the Comprehensive Environmental Response, Compensation, and Liability Act) and state statutes, the Company may be held jointly and severally liable for cleanup and enforcement costs associated with a particular site without regard to fault or the legality of the original conduct. The Company participates in the study, cleanup, or both of environmental contamination at approximately 185 sites. Environmental costs may include, but are not limited to, site investigations, remediation, and restoration. The liability is recorded when the expected loss is both probable and reasonably estimable and is undiscounted due to uncertainty of the timing of future payments. Expense accruals and adjustments are classified as materials and other in the Consolidated Statements of Income. BNSF estimates the cost of cleanup efforts at its known environmental sites based on experience gained from cleanup efforts at similar sites, estimated percentage to closure ratios, possible remediation work plans, estimates of the costs and likelihood of each possible outcome, historical payment patterns, and benchmark patterns developed from data accumulated from industry and public sources. The Company monitors actual experience against expectations and records adjustments as new events or changes in estimates develop. The following table summarizes the activity in the Company’s accrued obligations for environmental matters (in millions): Nine Months Ended September 30, 2023 2022 Beginning balance $ 247 $ 251 Accruals / changes in estimates 6 13 Payments (14) (13) Ending balance $ 239 $ 251 Current portion of ending balance $ 35 $ 35 The amount recorded by the Company for the environmental liability is based upon the best information currently available. It has not been reduced by anticipated recoveries from third parties and includes both asserted and unasserted claims. BNSF’s total cleanup costs at these sites cannot be predicted with certainty due to various factors, such as the extent of corrective actions that may be required, evolving environmental laws and regulations, advances in environmental technology, the extent of other parties’ participation in cleanup efforts, developments in ongoing environmental analyses related to sites determined to be contaminated, and developments in environmental surveys and studies of contaminated sites. Because of the uncertainty surrounding various factors, it is reasonably possible that future costs to settle these claims may be different from the recorded amounts. The Company estimates that costs to settle the liability may range from approximately $210 million to $275 million. Although the final outcome of these environmental matters cannot be predicted with certainty, it is the opinion of BNSF that none of these items, when finally resolved, will have a material adverse effect on the Company’s financial position or liquidity. However, the occurrence of a number of these items in the same period could have a material adverse effect on the results of operations in a particular quarter or fiscal year. Other Claims and Litigation In addition to personal injury and environmental matters, BNSF is a party to a number of other legal actions and claims, governmental proceedings, and private civil suits arising in the ordinary course of business, including those related to disputes and complaints involving certain transportation rates and charges. Some of the legal proceedings include claims for compensatory damages and may, from time to time, include requests for punitive damages or treatment of the claim as a class action. Although the final outcome of these matters cannot be predicted with certainty, it is the opinion of BNSF that none of these items, when finally resolved, will have a material adverse effect on the Company’s financial position or liquidity. However, the occurrence of a number of these items in the same period could have a material adverse effect on the results of operations in a particular quarter or fiscal year. BNSF Insurance Company BNSF has a consolidated, wholly-owned subsidiary, Burlington Northern Santa Fe Insurance Company, Ltd. (BNSFIC), that offers insurance coverage for certain risks including FELA, railroad protective and force account insurance, and property and excess general liability which are subject to reinsurance. BNSFIC has entered into annual reinsurance treaty agreements with several other companies. The treaty agreements insure workers’ compensation, general liability, auto liability, and FELA risk. In accordance with the agreements, BNSFIC cedes a portion of its FELA exposure through the treaties and assumes a proportionate share of the entire risk. Each year, BNSFIC reviews the objectives and performance of the treaties to determine its continued participation. The treaty agreements provide for certain protections against the risk of treaty participants’ non-performance. On an ongoing basis, BNSF and/or the treaty manager reviews the creditworthiness of each of the participants. The Company does not believe its exposure to treaty participants’ non-performance is material at this time. BNSFIC typically invests in time deposits, money market accounts, and treasury bills. As of September 30, 2023 and December 31, 2022, there was $555 million and $545 million, respectively, related to these third-party investments, which were classified as cash and cash equivalents on the Company’s Consolidated Balance Sheets. |
Employment Benefit Plans
Employment Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employment Benefit Plans | Employment Benefit Plans The Registrant provides a funded, noncontributory qualified pension plan (BNSF Retirement Plan), which covered most non-union employees through March 31, 2019, and an unfunded non-tax-qualified pension plan (BNSF Supplemental Retirement Plan), which covered certain officers and other employees through March 31, 2019. The benefits under these pension plans are based on years of credited service and the highest consecutive sixty months of compensation for the last ten years of salaried employment with the Company. In 2019, the Registrant amended the BNSF Retirement Plan and the BNSF Supplemental Retirement Plan. Non-union employees hired on or after April 1, 2019 are not eligible to participate in these retirement plans and instead receive an additional employer contribution as part of the qualified 401(k) plan based on the employees’ age and years of service. Current plan participants are being transitioned away from the retirement plans and upon transition are eligible for the additional employer contribution. BNSF Railway also provides a funded, noncontributory qualified pension plan which covers certain union employees of the former The Atchison, Topeka and Santa Fe Railway Company (Union Plan). The benefits under this pension plan are based on elections made at the time the plan was implemented. With respect to the funded plans, the Registrant's funding policy is to contribute annually not less than the regulatory minimum and not more than the maximum amount deductible for income tax purposes. The BNSF Retirement Plan, the BNSF Supplemental Retirement Plan, and the Union Plan are collectively referred to herein as the Pension Plans. Components of the net (benefit) cost for the Pension Plans were as follows (in millions): Pension Benefits Three Months Ended Nine Months Ended 2023 2022 2023 2022 Service cost $ 2 $ 4 $ 7 $ 13 Interest cost 21 15 63 46 Expected return on plan assets (47) (45) (139) (135) Amortization of net (gain) loss (8) 1 (25) 2 Net (benefit) cost recognized $ (32) $ (25) $ (94) $ (74) Service cost is included in compensation and benefits expense and the other components of net periodic benefit costs are included in other (income) expense, net in the Consolidated Statements of Income. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. For the nine-month periods ended September 30, 2023 and 2022, the Company declared and paid cash distributions of $1.1 billion and $3.6 billion to Berkshire, respectively. During the nine-month period ended September 30, 2023, the Company made tax payments of $961 million and received no tax refunds from Berkshire. During the nine-month period ended September 30, 2022, the Company made tax payments of $1.2 billion and received less than $1 million of tax refunds from Berkshire. As of September 30, 2023 and December 31, 2022, the Company had a tax receivable from Berkshire of $104 million and a tax payable to Berkshire of $112 million, respectively. North American railroads pay TTX Company (TTX) car hire to use TTX’s freight equipment to serve their customers. BNSF owns 17.4 percent of TTX while other North American railroads own the remaining interest. As the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of TTX, BNSF applies the equity method of accounting to its investment. The investment in TTX is recorded in other assets in the Consolidated Balance Sheets, and equity income or losses are recorded in materials and other in the Consolidated Statements of Income. The Company’s investment in TTX was $837 million and $807 million as of September 30, 2023 and December 31, 2022, respectively. The Company incurred car hire expenditures with TTX of $92 million and $106 million for the three-months and $277 million and $311 million for the nine-months ended September 30, 2023 and 2022, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Other comprehensive income refers to revenues, expenses, gains, and losses that under generally accepted accounting principles are included in accumulated other comprehensive income, a component of equity within the Consolidated Balance Sheets, rather than net income on the Consolidated Statements of Income. Under existing accounting standards, other comprehensive income may include, among other things, unrecognized gains and losses and prior service credit related to pension and other postretirement benefit plans. The following table provides the components of accumulated other comprehensive income (loss) (AOCI) by component (in millions): Pension and Retiree Health and Welfare Benefit Items Equity Method Investments Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2021 $ 356 $ (3) $ 353 Other comprehensive income (loss), net before reclassifications — 11 11 Amounts reclassified from AOCI: Amortization of actuarial (gains) losses a 4 — 4 Tax expense (benefit) (1) — (1) Balance as of September 30, 2022 $ 359 $ 8 $ 367 Balance as of December 31, 2022 $ 185 $ 9 $ 194 Other comprehensive income (loss), net before reclassifications — (1) (1) Amounts reclassified from AOCI: Amortization of actuarial (gains) losses a (26) — (26) Tax expense (benefit) 6 — 6 Balance as of September 30, 2023 $ 165 $ 8 $ 173 a This accumulated other comprehensive income component is included in the computation of net periodic pension and retiree health and welfare costs (see Note 7 for additional details on pension costs). |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company disaggregates revenue from contracts with customers based on the characteristics of the services provided and the types of products transported (in millions): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Consumer Products $ 1,982 $ 2,418 $ 5,744 $ 6,951 Agricultural Products 1,220 1,336 3,988 4,081 Industrial Products 1,458 1,468 4,285 4,223 Coal 932 1,101 2,897 2,989 Total freight revenues 5,592 6,323 16,914 18,244 Non-rail logistics subsidiary 128 163 383 540 Accessorial and other 127 207 397 517 Total other revenues 255 370 780 1,057 Total operating revenues $ 5,847 $ 6,693 $ 17,694 $ 19,301 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | The preliminary allocation of total consideration to the fair values of the assets is as follows (in millions): April 7, Property and equipment $ 500 Materials and supplies 37 Goodwill 1,576 Fair value of assets $ 2,113 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table summarizes the activity in the Company’s accrued obligations for personal injury claims (in millions): Nine Months Ended September 30, 2023 2022 Beginning balance $ 263 $ 296 Accruals / changes in estimates 59 29 Payments (74) (60) Ending balance $ 248 $ 265 Current portion of ending balance $ 90 $ 90 |
Accrued Obligations for Environmental Matters | The following table summarizes the activity in the Company’s accrued obligations for environmental matters (in millions): Nine Months Ended September 30, 2023 2022 Beginning balance $ 247 $ 251 Accruals / changes in estimates 6 13 Payments (14) (13) Ending balance $ 239 $ 251 Current portion of ending balance $ 35 $ 35 |
Employment Benefit Plans (Table
Employment Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Components of the net (benefit) cost for the Pension Plans were as follows (in millions): Pension Benefits Three Months Ended Nine Months Ended 2023 2022 2023 2022 Service cost $ 2 $ 4 $ 7 $ 13 Interest cost 21 15 63 46 Expected return on plan assets (47) (45) (139) (135) Amortization of net (gain) loss (8) 1 (25) 2 Net (benefit) cost recognized $ (32) $ (25) $ (94) $ (74) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the components of accumulated other comprehensive income (loss) (AOCI) by component (in millions): Pension and Retiree Health and Welfare Benefit Items Equity Method Investments Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2021 $ 356 $ (3) $ 353 Other comprehensive income (loss), net before reclassifications — 11 11 Amounts reclassified from AOCI: Amortization of actuarial (gains) losses a 4 — 4 Tax expense (benefit) (1) — (1) Balance as of September 30, 2022 $ 359 $ 8 $ 367 Balance as of December 31, 2022 $ 185 $ 9 $ 194 Other comprehensive income (loss), net before reclassifications — (1) (1) Amounts reclassified from AOCI: Amortization of actuarial (gains) losses a (26) — (26) Tax expense (benefit) 6 — 6 Balance as of September 30, 2023 $ 165 $ 8 $ 173 a This accumulated other comprehensive income component is included in the computation of net periodic pension and retiree health and welfare costs (see Note 7 for additional details on pension costs). |
Accounting Policies and Inter_2
Accounting Policies and Interim Results (Details) - Burlington Northern Santa Fe Corporation | Sep. 30, 2023 | Feb. 12, 2010 |
Business Combination [Line Items] | ||
Acquired remaining outstanding shares, percentage | 100% | |
Holders of membership interests | 1 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,847 | $ 6,693 | $ 17,694 | $ 19,301 |
Total freight revenues | 5,592 | 6,323 | 16,914 | 18,244 |
Total other revenues | 255 | 370 | 780 | 1,057 |
Consumer Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,982 | 2,418 | 5,744 | 6,951 |
Agricultural Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,220 | 1,336 | 3,988 | 4,081 |
Industrial Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,458 | 1,468 | 4,285 | 4,223 |
Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 932 | 1,101 | 2,897 | 2,989 |
Non-rail logistics subsidiary | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 128 | 163 | 383 | 540 |
Accessorial and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 127 | $ 207 | $ 397 | $ 517 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Disclosure of contract asset and liability (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Net receivables from contracts with customers | $ 1.1 | $ 1.2 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Remaining performance obligations (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 249 | $ 293 |
Accounts Receivable, Net Allowa
Accounts Receivable, Net Allowance for Credit Losses (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable, allowance for credit loss | $ 43 | $ 32 |
Business Combinations and Ass_2
Business Combinations and Asset Acquisitions (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Apr. 07, 2023 | Dec. 31, 2022 |
Business Combination [Line Items] | |||
Goodwill | $ 16,396 | $ 14,852 | |
Montana Rail Link | |||
Business Combination [Line Items] | |||
Property and equipment | $ 500 | ||
Materials and supplies | 37 | ||
Goodwill | 1,576 | ||
Fair value of assets | $ 2,113 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Business Combination and Asset Acquisition [Abstract] | ||
Goodwill | $ 16,396 | $ 14,852 |
Property and equipment | $ 500 |
Debt Notes and Debentures (Deta
Debt Notes and Debentures (Details) $ in Millions | Sep. 30, 2023 USD ($) |
SEC Debt Shelf Registration | |
Debt Instrument [Line Items] | |
The board of managers authorized additional debt securities for issuance | $ 3,000 |
Remaining Debt Securities Authorized by the Board | 2,950 |
Junior Subordinated Debt | |
Debt Instrument [Line Items] | |
Subordinated notes related to financial covenants | 500 |
Five Point Two Percent Due April 15, 2054 | Corporate Debt Securities | |
Debt Instrument [Line Items] | |
Debt issuance, face amount | $ 1,600 |
Debt instrument, stated interest rate | 5.20% |
Debt Fair Value of Debt Instrum
Debt Fair Value of Debt Instruments (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Fair value of debt excluding finance leases | $ 20.5 | $ 21.5 |
Book value of debt excluding finance leases | $ 23.4 | $ 23.3 |
Commitments and Contingencies P
Commitments and Contingencies Personal Injury (Details) - Personal Injury - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | $ 263 | $ 296 |
Accruals / changes in estimates | 59 | 29 |
Payments | (74) | (60) |
Ending balance | 248 | 265 |
Current portion of ending balance | 90 | $ 90 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 205 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 320 |
Commitments and Contingencies E
Commitments and Contingencies Environmental (Details) - Environmental Issue $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) site | Sep. 30, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||
Number of alleged environmental contamination sites | site | 185 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | $ 247 | $ 251 |
Accruals / changes in estimates | 6 | 13 |
Payments | (14) | (13) |
Ending balance | 239 | 251 |
Current portion of ending balance | 35 | $ 35 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Possible future costs to settle claims and associated liability | 210 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Possible future costs to settle claims and associated liability | $ 275 |
Commitments and Contingencies I
Commitments and Contingencies Insurance (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Cash and cash equivalents | $ 2,972 | $ 1,938 |
Commercial Paper, Bank Time Deposits, and Money Market Funds | BNSF Insurance Company | ||
Loss Contingencies [Line Items] | ||
Cash and cash equivalents | $ 555 | $ 545 |
Employment Benefit Plans (Detai
Employment Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of months for highest consecutive compensation | 60 months | |||
Total number of years of salaried employees to qualify for pension plans | 10 years | |||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 4 | $ 7 | $ 13 |
Interest cost | 21 | 15 | 63 | 46 |
Expected return on plan assets | (47) | (45) | (139) | (135) |
Amortization of net loss | (8) | 1 | (25) | 2 |
Net (benefit) cost recognized | $ (32) | $ (25) | $ (94) | $ (74) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||||||||
Cash distributions | $ 1,100 | $ 1,500 | $ 1,100 | $ 1,000 | $ 1,100 | $ 3,600 | ||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Equity Method Investments Related to TTX | $ 837 | $ 837 | $ 807 | |||||
TTX Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership Percentage in TTX Company | 17.40% | 17.40% | ||||||
TTX Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Car Hire Expenditures with TTX | $ 92 | $ 106 | $ 277 | 311 | ||||
Parent Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash distributions | 1,100 | 3,600 | ||||||
Tax payments to Berkshire | 961 | 1,200 | ||||||
Tax refunds from Berkshire | 0 | $ 1 | ||||||
Tax Receivable, Berkshire | $ 104 | $ 104 | ||||||
Tax Payable, Berkshire | $ 112 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income AOCI by Component (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Beginning Balance | $ 194 | $ 353 |
Other comprehensive income (loss), net before reclassifications | (1) | 11 |
Reclassification from AOCI, Current Period, Tax | 6 | (1) |
Ending Balance | 173 | 367 |
Equity Method Investments | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Beginning Balance | 9 | (3) |
Other comprehensive income (loss), net before reclassifications | (1) | 11 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 |
Ending Balance | 8 | 8 |
Pension and Retiree Health and Welfare Benefit Items | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Beginning Balance | 185 | 356 |
Other comprehensive income (loss), net before reclassifications | 0 | 0 |
Reclassification from AOCI, Current Period, Tax | 6 | (1) |
Ending Balance | 165 | 359 |
Amortization of net loss | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Amortization of actuarial losses | (26) | 4 |
Amortization of net loss | Equity Method Investments | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Amortization of actuarial losses | 0 | 0 |
Amortization of net loss | Pension and Retiree Health and Welfare Benefit Items | ||
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | ||
Amortization of actuarial losses | $ (26) | $ 4 |