Related Party Transactions

9 Months Ended

Sep. 30, 2020

The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. During the nine months ended September 30, 2020 and 2019, the Company declared and paid cash distributions of $3.1 billion and $3.4 billion, respectively, to Berkshire. In the nine-months ended September 30, 2020 and 2019, the Company made tax payments of $781 million and $741 million to Berkshire, respectively. Additionally, in the nine months ended September 30, 2020, the Company received $29 million of tax refunds from Berkshire. As of September 30, 2020 and December 31, 2019, the Company had a tax payable to Berkshire of $3 million and $31 million, respectively.

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):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues	$	28	$	39	$	94	$	118
Expenditures	$	85	$	93	$	259	$	286

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 recorded under the equity method 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 $691 million and $656 million recognized as investments related to TTX in its Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, respectively.