Related Party Transactions

The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. For the years ended December 31, 2017, 2016 and 2015, the Company declared and paid cash distributions of $4.6 billion, $2.5 billion and $4.0 billion, respectively, to its parent company. For the years ended December 31, 2017, 2016 and 2015, the Company received tax refunds of $29 million, $235 million and $167 million, respectively, from Berkshire, and made tax payments of $1,603 million, $893 million and $1,285 million, respectively to Berkshire. As of December 31, 2017, the Company has a receivable from Berkshire of $235 million recorded in Other Current Assets and a payable to Berkshire of $19 million. As of December 31, 2016, the Company has a payable to Berkshire of $109 million. Uncertain tax positions will affect the tax payable to Berkshire if and when settled. As of December 31, 2017 and 2016, the Company has $32 million and $90 million payable to Berkshire related to prior year tax audit settlements.

BNSF engages in various transactions with related parties in the ordinary course of business. The following table summarizes revenues earned by BNSF for services provided to related parties and expenditures to related parties (in millions):



	Year Ended		Year Ended		Year Ended
	December 31, 2017		December 31, 2016		December 31, 2015
Revenues	$	139	$	146	$	178
Expenditures	$	342	$	286	$	298

BNSF owns 17.3 percent of TTX Company (TTX) while other North American railroads own the remaining interest. As BNSF possesses the ability to exercise significant influence, but not control, over the operating and financial policies of TTX, BNSF applies the equity method of accounting to its investment in TTX. In applying the equity method, the investment is recorded in Other Assets. Equity income or losses are recorded in Materials and Other in the Consolidated Statements of Income. North American railroads pay TTX car hire to use TTX’s freight equipment to serve their customers. BNSF’s car hire expenditures incurred with TTX are included in the table above. BNSF had $554 million and $414 million recognized as investments related to TTX in its Consolidated Balance Sheets as of December 31, 2017 and 2016, respectively.