2.2.0.7 false Accounting Policies and Interim Results 0201 - Disclosure - Accounting Policies and Interim Results true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ 2 Accounting Policies and Interim Results [Abstract] 0 us-gaap_GeneralPoliciesAbstract 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 Accounting Policies and Interim Results 1 bni_AccountingPoliciesAndInterimResultsTextBlock bni false na duration This element contains a description of interim results as well as any significant changes in accounting policies or... false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div align="left" 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: 12pt"><b>1. Accounting Policies and Interim Results</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Consolidated Financial Statements should be read in conjunction with Burlington Northern Santa Fe Corporation’s Annual Report on Form 10-K for the year ended December 31, 2009, including the financial statements and notes thereto. Burlington Northern Santa Fe, LLC (BNSF) 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 BNSF and its majority-owned subsidiaries, all of which are separate legal entities (collectively, the Company). BNSF’s principal operating subsidiary is BNSF Railway Company (BNSF Railway). All significant intercompany accounts and transactions have been eliminated. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Burlington Northern Santa Fe Corporation was incorporated in the State of Delaware on December 16, 1994. As further discussed in Note 2 to the Consolidated Financial Statements, on February 12, 2010, Berkshire Hathaway Inc., a Delaware corporation (Berkshire), acquired 100% 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 (the Merger) of Burlington Northern Santa Fe Corporation with and into R Acquisition Company, LLC, a Delaware limited liability company and an indirect wholly-owned subsidiary of Berkshire (Merger Sub), with Merger Sub continuing as the surviving entity. In connection with the Merger, Merger Sub changed its name to “Burlington Northern Santa Fe, LLC” and remains an indirect, wholly-owned subsidiary of Berkshire. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Berkshire’s cost of acquiring BNSF has been pushed-down to establish a new accounting basis for BNSF. Accordingly, the accompanying interim consolidated financial statements are presented for two periods, Predecessor and Successor, which relate to the accounting periods preceding and succeeding the completion of the Merger. The Predecessor and Successor periods have been separated by a vertical line on the face of the consolidated financial statements to highlight the fact that the financial information for such periods has been prepared under two different historical-cost bases of accounting. Earnings per share data has not been presented because BNSF has not issued stock or membership interests to the public. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     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 a fair statement of BNSF’s consolidated financial position as of June 30, 2010 (Successor), and the results of operations for the three months ended June 30, 2010 (Successor) and 2009 (Predecessor), the periods February 13 — June 30, 2010 (Successor), January 1 — February 12, 2010 (Predecessor), and the six months ended June 30, 2009 (Predecessor). </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><u><b>New Accounting Policies Adopted Upon Merger</b></u> </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Goodwill</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. As a result of the Merger, BNSF recognized goodwill as well as additional intangible assets and liabilities (see Note 2 to the Consolidated Financial Statements for further information related to the Merger). </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill is tested for impairment annually or more frequently if events or circumstances indicate that the carrying amount may not be recoverable. The impairment test encompasses calculating a fair value of the assets and comparing the fair value to its carrying value. The goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units and determination of the fair value of each reporting unit. If the carrying amount of goodwill exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. </div> </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Rail Grinding Costs</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Upon the Merger discussed in Note 2, BNSF adopted the direct expense method of accounting for rail grinding costs, under which the Company expenses rail grinding costs as incurred. </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: 12pt"><u><b>Adoption of New Accounting Pronouncement</b></u> </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB amended authoritative accounting guidance related to transfers of financial assets which updates existing guidance. The amended authoritative accounting guidance limits the circumstances in which financial assets can be derecognized and requires enhanced disclosures regarding transfers of financial assets and a transferor’s continuing involvement with transferred financial assets. The amended authoritative accounting guidance also eliminates the concept of a qualifying special-purpose entity (QSPE), which requires companies to evaluate former QSPEs for consolidation. </div> </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB amended authoritative accounting guidance related to the consolidation of variable interest entities (VIEs). The amended authoritative accounting guidance updates existing guidance used to determine whether or not a company is required to consolidate a VIE and requires enhanced disclosures. The amended authoritative accounting guidance also eliminates quantitative-based assessments and requires companies to perform ongoing qualitative assessments to determine whether or not the VIE should be consolidated. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company prospectively adopted the amended authoritative accounting guidance on January 1, 2010. See Note 4 and Note 6 to the Consolidated Financial Statements for information related to the impact of the adoption of the amended authoritative accounting guidance. </div> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><u><b>Subsequent Events</b></u> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">  <b><i>Low-income Housing Partnership</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In July 2010, the Company entered into a low-income housing partnership as the limited partner, holding a 99.9% interest in the partnership. The general partner, who holds a 0.1% interest in the partnership, is an unrelated third party and is responsible for controlling and managing the business and financial operation of the partnership. Of the total investment of $591 million, $443 million was paid at closing, with remaining commitments of $130 million and $18 million due at the end of 2012 and 2013, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">  <b><i>Unwound Interest Rate Hedges</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In July 2010, the Company unwound four interest rate swaps having an aggregate notional amount of $400 million. The swaps were originally entered into in March 2008 to convert the fixed rate of 5.75 percent on $400 million of 10-year notes, due 2018, into a variable interest rate. The Company recorded a gain on the transaction of $45 million, which will be reflected as a reduction of interest expense over the remaining term of these notes. </div> </div>  <!-- Begin Block Tagged Note false false false xbrli:normalizedStringItemType normalizedstring This element contains a description of interim results as well as any significant changes in accounting policies or principles since the end of the most recent fiscal year. No authoritative reference available. false 1 2 false UnKnown UnKnown UnKnown false true