Related Party Transactions

The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. During the nine months ended September 30, 2018 and 2017, the Company declared and paid cash distributions of $4.2 billion and $2.6 billion, respectively, to its parent company. For the nine months ended September 30, 2018 and 2017, the Company received tax refunds of $217 million and $21 million, respectively, from Berkshire, and made tax payments of $591 million and $1.0 billion, respectively, to Berkshire. As of September 30, 2018, the Company had a payable to Berkshire of $74 million. As of December 31, 2017, the Company had a receivable from Berkshire of $235 million recorded in other current assets and a payable to Berkshire of $19 million. Uncertain tax positions will affect the tax payable to Berkshire if and when settled. As of September 30, 2018 and December 31, 2017, the Company had $33 million and $32 million, respectively, 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 tables summarize revenues earned by BNSF for services provided to related parties and expenditures to related parties (in millions):



	Three Months Ended September 30,
	2018		2017
Revenues	$	39	$	32
Expenditures	$	95	$	82



	Nine Months Ended September 30,
	2018		2017
Revenues	$	106	$	100
Expenditures	$	281	$	243

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 $598 million and $554 million recognized as investments related to TTX in its Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, respectively.