2.2.0.7 false Derivative Activities 0203 - Disclosure - Derivative Activities true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ 2 Derivative Activities [Abstract] 0 us-gaap_GeneralDiscussionOfDerivativeInstrumentsAndHedgingActivitiesAbstract us-gaap true na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Derivative Activities 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>3. Derivative Activities</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company uses derivative financial instruments to hedge against increases in diesel fuel prices and interest rates as well as to convert a portion of its fixed-rate long-term debt to floating-rate debt. The Company does not use derivative financial instruments for trading or speculative purposes. The Company formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for the use of the hedging instrument. This documentation includes linking the derivatives that are designated as fair value or cash flow hedges to specific assets or liabilities on the balance sheet, commitments or forecasted transactions. The Company assesses at the time a derivative contract is entered into, and at least quarterly thereafter, whether the derivative item is effective in offsetting the changes in fair value or cash flows. Any change in fair value resulting from ineffectiveness, as defined by authoritative accounting guidance related to derivatives and hedging<i>, </i>is recognized in current period earnings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is recorded in accumulated other comprehensive income (AOCI) as a separate component of equity and reclassified into earnings in the period during which the hedge transaction affects earnings. Cash flows related to fuel and interest rate derivatives are classified as operating activities in the Consolidated Statements of Cash Flows. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Upon application of acquisition method accounting due to the Merger, the Company was required to re-designate its outstanding derivatives as hedges under authoritative accounting guidance. Certain costless collar derivatives did not qualify for re-designation as they were in net written positions as of the Merger date. As a result, hedge accounting was discontinued on these instruments. The Company will continue to hold these financial instruments to hedge against increases in diesel fuel prices, recognizing any gains and losses from changes in fair value in current period earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     BNSF monitors its derivative instrument positions and credit ratings of its counterparties and does not anticipate any losses due to counterparty nonperformance. All counterparties were financial institutions with credit ratings of A2/A or higher as of June 30, 2010. The maximum amount of loss the Company could incur from credit risk based on the gross fair value of derivative instruments in asset positions as of June 30, 2010 and December 31, 2009, was $73 million and $104 million, respectively. Other than as disclosed under the heading “Fuel; Total Fuel-Derivative Activities,” the Company’s derivative agreements do not include provisions requiring collateral. Certain of the Company’s derivative instruments are covered by master netting arrangements whereby, in the event of a default, the non-defaulting party has the right to setoff any amounts payable against any obligation of the defaulting party under the same counterparty agreement. As such, the Company’s net asset exposure to counterparty credit risk was $67 million and $90 million as of June 30, 2010 and December 31, 2009, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Additional disclosure related to derivative instruments is included in Note 10 to the Consolidated Financial Statements. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The amounts recorded in the Consolidated Balance Sheets for derivative transactions were as follows, presented net of any master netting arrangements (in millions): </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="77%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Short-term derivative asset </div></td> <td> </td> <td align="left">$</td> <td align="right">12</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">34</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term derivative asset </div></td> <td> </td> <td> </td> <td align="right">57</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">57</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Short-term derivative liability </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(38</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term derivative liability </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="2" align="left" style="border-top: 0px solid #000000"> </td> <td colspan="2" align="left" style="border-top: 1px solid #000000"> </td> <td colspan="1" align="left" style="border-top: 0px solid #000000"> </td> <td style="border-right: 1px solid #000000; border-top: 0px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000; border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left">$</td> <td align="right">18</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">54</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The tables below contain summaries of all derivative positions reported in the Consolidated Financial Statements, presented gross of any master netting arrangements (in millions): </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="36%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="35%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" colspan="12" style="border-bottom: 1px solid #000000"><b>Fair Value of Derivative Instruments</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" colspan="12" style="border-bottom: 1px solid #000000"><b>Asset Derivatives</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Balance Sheet</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>31, 2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Asset derivatives designated as hedging instruments under ASC 815-20 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">10</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">20</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other current assets</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate contracts </div></td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other current assets</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">40</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other assets</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate contracts </div></td> <td> </td> <td> </td> <td align="right">47</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other assets</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td align="left" valign="bottom">Accounts payable and other current liabilities</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other liabilities</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total asset derivatives designated as hedging instruments under ASC 815-20 </div></td> <td> </td> <td align="left">$</td> <td align="right">73</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">104</td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total asset derivatives </div></td> <td> </td> <td align="left">$</td> <td align="right">73</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">104</td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="36%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="35%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" colspan="12" style="border-bottom: 1px solid #000000"><b>Liability Derivatives</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Balance Sheet</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>31, 2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Liability derivatives designated as hedging instruments under ASC 815-20 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">2</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other current assets</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other assets</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td> </td> <td align="right">38</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> <td> </td> <td align="left" valign="bottom">Accounts payable and other current liabilities</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other liabilities</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total liability derivatives designated as hedging instruments under ASC 815-20 </div></td> <td> </td> <td align="left">$</td> <td align="right">53</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">50</td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Liability derivatives not designated as hedging instruments under ASC 815-20 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" valign="bottom">Accounts payable and other current liabilities</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel contracts </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" valign="bottom">Other liabilities</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total liability derivatives not designated as hedging instruments under ASC 815-20 </div></td> <td> </td> <td align="left">$</td> <td align="right">2</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total liability derivatives </div></td> <td> </td> <td align="left">$</td> <td align="right">55</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">50</td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td align="left" valign="bottom"> </td> </tr>  </table> </div> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 6pt"><b>The Effects of Derivative Instruments Gains and Losses<br /> for the Three Month Periods Ended June 30, 2010 and 2009</b> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Derivatives in ASC 815-20 Cash Flow Hedging Relationships</u> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="77%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain or (Loss) Recognized in OCI</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>on Derivatives (Effective Portion)</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(58</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">204</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(58</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">204</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain or (Loss) Recognized from</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>AOCI into Income (Effective Portion)</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>Location of Gain or (Loss) Recognized</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>from AOCI into Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td align="left" valign="top">Fuel expense</td> <td> </td> <td align="left">$</td> <td align="right">7</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(60</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">7</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(60</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain or (Loss) Recognized in</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Income on Derivatives (Ineffective Portion and</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Amount Excluded from Effectiveness Testing)</b><sup style="font-size: 85%; vertical-align: text-top"><b>a</b></sup></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>Location of Gain or (Loss) Recognized</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>in Income on Derivatives</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td align="left" valign="top">Fuel expense</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">15</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">15</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">a</td> <td> </td> <td>No portion of the gain or (loss) was excluded from the assessment of hedge effectiveness for the periods then ended.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Derivatives Not Designated as Hedging Instruments under ASC 815-20</u> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Amount of Gain or (Loss) Recognized in</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Income on Derivatives</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>Location of Gain or (Loss) Recognized</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>in Income on Derivatives</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td align="left" valign="top">Fuel expense</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(12</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest Rate Contracts </div></td> <td> </td> <td align="left" valign="top">Interest expense</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(12</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">10</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt; margin-top: 6pt"><b>The Effects of Derivative Instruments Gains and Losses for the Periods<br /> February 13 — June 30, 2010 (Successor), January 1 — February 12, 2010 (Predecessor)<br /> and the Six Months Ended June 30, 2009 (Predecessor)</b> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Derivatives in ASC 815-20 Cash Flow Hedging Relationships</u> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11"><b>Amount of Gain or (Loss) Recognized in OCI</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>on Derivatives (Effective Portion)</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>February 13 -</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>January 1 -</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>February 12, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">10</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(79</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">172</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest Rate Contracts </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left">$</td> <td align="right">10</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(79</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">237</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11"><b>Amount of Gain or (Loss) Recognized from</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>AOCI into Income (Effective Portion)</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>Location of Gain or</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>(Loss) Recognized from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>February 13 -</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>January 1 -</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>AOCI into Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>February 12, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td align="left" valign="top">Fuel expense</td> <td> </td> <td align="left">$</td> <td align="right">14</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(6</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(166</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">14</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(6</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(166</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11"><b>Amount of Gain or (Loss) Recognized in</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11"><b>Income on Derivatives (Ineffective Portion and</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Amount Excluded from Effectiveness Testing)</b><sup style="font-size: 85%; vertical-align: text-top"><b>a</b></sup></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>Location of Gain or</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>(Loss) Recognized in</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>February 13 -</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>January 1 -</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Income on Derivatives</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>February 12, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td align="left" valign="top">Fuel expense</td> <td> </td> <td align="left">$</td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">16</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">16</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">a</td> <td> </td> <td>No portion of the gain or (loss) was excluded from the assessment of hedge effectiveness for the periods then ended.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 12pt"><u>Derivatives Not Designated as Hedging Instruments under ASC 815-20</u> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="3%"> </td> <td width="30%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11"><b>Amount of Gain or (Loss) Recognized in</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Income on Derivatives</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>Location of Gain or</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>(Loss) Recognized in</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>February 13 -</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>January 1 -</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Income on Derivatives</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>February 12, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fuel Contracts </div></td> <td> </td> <td align="left" valign="top">Fuel expense</td> <td> </td> <td align="left">$</td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest Rate Contracts </div></td> <td> </td> <td align="left" valign="top">Interest expense</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(32</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total derivatives </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left">$</td> <td align="right">1</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(32</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010, the Company estimates that within the next twelve months approximately $8 million in pre-tax hedge instrument losses will be reclassified from accumulated other comprehensive income into earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><u><b>Fuel</b></u> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Fuel costs represented 24 percent, 25 percent and 21 percent of total operating expenses during the periods February 13 — June 30, 2010 (Successor), January 1 — February 12, 2010 (Predecessor), and the six months ended June 30, 2009 (Predecessor), respectively. Due to the significance of diesel fuel expenses to the operations of BNSF and the historical volatility of fuel prices, the Company has entered into derivatives to partially mitigate the risk of fluctuations in the price of its diesel fuel purchases. The fuel derivatives include the use of derivatives that are accounted for as cash flow hedges. The derivatives are intended to protect the Company’s operating margins and overall profitability from adverse fuel price changes by entering into fuel-derivative instruments based on management’s evaluation of current and expected diesel fuel price trends. However, to the extent the Company hedges portions of its fuel purchases, it may not realize the impact of decreases in fuel prices. Conversely, to the extent the Company does not hedge portions of its fuel purchases, it may be adversely affected by increases in fuel prices. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Total Fuel-Derivative Activities</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010, BNSF’s total fuel-derivative positions for the remainder of 2010, 2011, and 2012, of which the majority are designated as cash flow hedges, covered approximately 22 percent, 18 percent and 3 percent, respectively, of the average annual locomotive fuel consumption over the past three years. Derivative positions are closely monitored to ensure that they will not exceed actual fuel requirements in any period. As of June 30, 2010, and December 31, 2009, BNSF had entered into fuel-derivative agreements covering approximately 432 million gallons and 561 million gallons, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Certain of the Company’s fuel-derivative instruments are covered by an agreement which includes a provision such that the Company either receives or posts cash collateral if the fair value of the instruments exceeds a certain net asset or net liability threshold, respectively. The threshold is based on a sliding scale, utilizing either the counterparty’s credit rating, if the instruments are in a net asset position, or BNSF’s credit rating, if the instruments are in a net liability position. If the applicable credit rating should fall below Ba3 (Moody’s) or BB- (S&P), the threshold would be eliminated and collateral would be required for the entire fair value amount. All cash collateral paid is held on deposit by the payee and earns interest to the benefit of the payor based on the London Interbank Offered Rate (LIBOR). The aggregate fair value of all open fuel-derivative instruments under these provisions was in a net liability position on June 30, 2010 and December 31, 2009, of $16 million and $18 million, respectively, which was below the collateral threshold. As such, there was no posted collateral outstanding at June 30, 2010 or December 31, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company utilizes a market approach using the forward commodity price for the periods hedged to value its fuel-derivative swaps and costless collars. As such, the fair values of these instruments are classified as Level 2 valuations under authoritative accounting guidance related to fair value measurements. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><u><b>Interest Rate</b></u> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     From time to time, the Company enters into various interest rate derivative transactions for the purpose of managing exposure to fluctuations in interest rates by establishing rates in anticipation of both future debt issuances and the refinancing of leveraged leases, as well as converting a portion of its fixed-rate long-term debt to floating-rate debt. The Company uses interest rate swaps and treasury locks as part of its interest rate risk management strategy. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company utilizes a market approach using estimates of the mid-market values to value its interest rate derivatives. As such, the fair values of these instruments are classified as Level 2 valuations under authoritative accounting guidance related to fair value measurements. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Fair Value Interest Rate Hedges</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company enters into interest rate swaps to convert fixed-rate long-term debt to floating-rate debt. These swaps are accounted for as fair value hedges under authoritative accounting guidance related to derivatives and hedging. Upon application of acquisition method accounting due to the Merger, these swaps were re-designated as fair value hedges. However, the swaps no longer qualified for the short-cut method of recognition; therefore, effectiveness is measured at least quarterly and any resulting ineffectiveness will be recognized in current period earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The gain or loss on the fair value hedges as well as the offsetting loss or gain on the hedged items (fixed-rate debt) attributable to the hedged risk are recorded in current earnings. The Company includes the gain or loss on the fixed-rate debt in the same line item (interest expense) as the offsetting loss or gain on the related interest rate swaps as follows (in millions): </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="78%">  <tr valign="bottom"> <td width="32%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000"><b>Gain (Loss) on Interest Rate Swaps</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000"><b>Gain (Loss) on Fixed-rate Debt</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000"><b>Three Months Ended June 30,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="8" style="border-bottom: 1px solid #000000"><b>Three Months Ended June 30,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 0px solid #000000"><b>Statement</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Classification</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest expense </div></td> <td> </td> <td align="right">$</td> <td align="right">21</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(30</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(20</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="right">$</td> <td align="right">30</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td colspan="7" align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td colspan="3" align="left" style="border-top: 0px solid #000000"> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="30%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="12" style="border-bottom: 1px solid #000000"><b>Gain (Loss) on Interest Rate Swaps</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="12" style="border-bottom: 1px solid #000000"><b>Gain (Loss) on Fixed-rate Debt</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Successor</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Predecessor</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>February 13 -</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>January 1 -</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Six Months</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>February 13 -</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>January 1 -</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Six Months</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Statement</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>February 12,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Ended June</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>February 12,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Ended June</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Classification</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>30, 2009</b></td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest expense </div></td> <td> </td> <td align="right">$</td> <td align="right">19</td> <td> </td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td align="right">$</td> <td align="right">6</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(41</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td style="border-right: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(6</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$</td> <td align="right">41</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td colspan="11" align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td align="left" style="border-top: 0px solid #000000"> </td> <td colspan="7" align="left" style="border-top: 0px solid #000000"> </td> </tr>  </table> </div> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010 and December 31, 2009, BNSF had entered into nine separate swaps with an aggregate notional amount of $650 million, in conjunction with notes due in 2010 and 2018, in which it pays an average floating rate, which fluctuates quarterly, based on LIBOR. As of June 30, 2010, the average fixed rate BNSF is to receive was 6.28 percent. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     See Note 1 to the Consolidated Financial Statements for information related to the unwind of interest rate swaps with an aggregate notional amount of $400 million subsequent to June 30, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Cash Flow Interest Rate Hedges</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010, and December 30, 2009, the Company had no outstanding cash flow hedges. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     AOCI included $8 million of unrecognized gains on closed hedges as of December 31, 2009, which was being amortized to interest expense over the life of the corresponding issued debt. The unrecognized gain on closed hedges in AOCI was eliminated in the application of acquisition method accounting due to the Merger. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items. 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