2.2.0.7 false Accounting Policies and Interim Results (Policies) 0401 - Disclosure - Accounting Policies and Interim Results (Policies) true false false false 1 USD false false Pure Standard http://www.xbrl.org/2003/instance pure xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ 2 Accounting Policies and Interim Results (Policies) [Abstract] 0 bni_AccountingPoliciesAndInterimResultsPoliciesAbstract bni false na duration Accounting Policies and Interim Results Policies. 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 Accounting Policies and Interim Results Policies. false 3 Goodwill 1 us-gaap_GoodwillAndIntangibleAssetsPolicyTextBlock 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 align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><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. See Note 5 to the Consolidated Financial Statements for further information related to goodwill. </div> </div>    <div align="left" style="font-size: 10pt; 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 align="left" style="font-size: 10pt; 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 updated 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 eliminated the concept of a qualifying special-purpose entity (QSPE), which requires companies to evaluate former QSPEs for consolidation. </div> </div>    <div align="left" style="font-size: 10pt; 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 updated 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 eliminated quantitative-based assessments and requires companies to perform ongoing qualitative assessments to determine whether or not the VIE should be consolidated. </div> </div>    <div align="center" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Merger was accounted for using the acquisition method under Accounting Standards Codification (ASC) Topic 805, <i>Business Combinations</i>. Under the acquisition method, the purchase price was allocated to the underlying tangible and intangible assets acquired and liabilities assumed based on their respective fair values, with the remainder allocated to goodwill. None of the goodwill recorded in connection with the Merger will be deductible for income tax purposes. The purchase price allocation at September 30, 2010, is substantially complete; however, additional analysis primarily related to the value of property and equipment and intangibles, and any associated tax impacts could result in a change in the total amount of goodwill. </div> </div>    <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of assets acquired also included intangible assets of $2,025 million, with a weighted average amortization life of 10 years. The fair value of liabilities acquired included intangible liabilities of $2,056 million, with a weighted average amortization life of 16 years. See Note 5 to the Consolidated Financial Statements for further information related to intangible assets and liabilities. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Liabilities acquired included contingencies related to casualty and environmental liabilities in the amount of $1,178 million. Casualty liabilities were measured at fair value, and environmental liabilities were measured in accordance with ASC Topic 450, <i>Contingencies</i>. See Note 8 to the Consolidated Financial Statements for further information related to casualty and environmental liabilities. </div> </div>    <div align="left" style="font-size: 10pt; font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Amortized intangible assets and liabilities are amortized either on a straight-line basis over their estimated economic lives or based on the pattern in which the economic benefits are consumed. The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible net assets to earnings in proportion to the amount of economic benefits obtained annually by the Company. </div> </div>  <!-- Begin Block Tagged false false false us-types:textBlockItemType textblock Describes an entity's accounting policy for finite-lived intangible assets and liabilities. This accounting policy also may address: (1) the amortization method used (2) the useful lives of such assets or liabilities (3) how the entity assesses and measures impairment of such assets or liabilities. No authoritative reference available. false 1 8 false UnKnown UnKnown UnKnown false true