Related Party Transactions

The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. During the nine months ended September 30, 2019 and 2018, the Company declared and paid cash distributions of $3.4 billion and $4.2 billion, respectively, to its parent company. In the nine months ended September 30, 2019 and 2018, the Company made tax payments to Berkshire of $741 million and $591 million, respectively. Additionally, the Company received $217 million of tax refunds from Berkshire in the nine months ended September 30, 2018. As of September 30, 2019, the Company had a tax receivable from Berkshire of $32 million. As of December 31, 2018, the Company had a tax payable to Berkshire of $54 million.

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,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues	$	39	$	39	$	118	$	106
Expenditures	$	93	$	95	$	286	$	281

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. The investment in TTX is recorded in other assets in the Consolidated Balance Sheets. 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 $645 million and $609 million recognized as investments related to TTX in its Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, respectively.