Goodwill and Other Intangible Assets and Liablities

12 Months Ended

Dec. 31, 2012

Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]

Other Intangible Assets and Liabilities

Goodwill and Other Intangible Assets and Liabilities

During the year ended December 31, 2012 (Successor), the year ended December 31, 2011 (Successor), the period February 13 – December 31, 2010 (Successor) and the period January 1 – February 12, 2010 (Predecessor), no impairment losses related to goodwill were incurred. As of December 31, 2012 and 2011, there were no accumulated impairment losses related to goodwill. For the year ended December 31, 2011, there was no additional goodwill recognized; therefore, the carrying value was $14,803 million.

In December 2012, BNSF Logistics, LLC, a wholly-owned, third-party logistics company, made an immaterial acquisition of two companies, resulting in the recognition of $33 million in goodwill. The acquisition valuation is in process and additional analysis of intangibles and other assets and liabilities may result in a change in the total amount of goodwill. For the year ended December 31, 2012, the carrying value of goodwill was $14,836 million.

Amortized intangible assets and liabilities were as follows (in millions):

	Successor
	As of December 31, 2012				As of December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets	$	2,013	$	899	$	2,013	$	593
Amortized intangible liabilities	$	2,056	$	842	$	2,056	$	560

Amortized intangible assets primarily consisted of internally developed software and franchise and customer assets. Amortized intangible liabilities primarily consisted of customer and shortline contracts which were in an unfavorable position at the date of Merger.

Amortized intangible assets and liabilities are amortized based on the estimated pattern in which the economic benefits are expected to be consumed or on a straight-line basis over their estimated economic lives.

Amortization of intangible assets and liabilities was as follows (in millions):

	Successor
	Year Ended		Year Ended
	December 31, 2012		December 31, 2011
Amortization of intangible assets	$	306	$	312
Amortization of intangible liabilities	$	282	$	294

Amortization of intangible assets and liabilities for the next five years is expected to approximate the following (in millions):

	Amortization of intangible assets		Amortization of intangible liabilities
2013	$	306	$	252
2014	$	306	$	179
2015	$	54	$	115
2016	$	31	$	101
2017	$	31	$	96