Related Party Transactions

3 Months Ended

Mar. 31, 2022

The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. In both of the three-month periods ended March 31, 2022 and 2021, the Company declared and paid cash distributions of $1.0 billion to Berkshire.

During the three-month period ended March 31, 2022, the Company made no tax payments and received less than $1 million of tax refunds from Berkshire. During the three-month period ended March 31, 2021, the Company made tax payments of less than $1 million and received no tax refunds from Berkshire. As of March 31, 2022 and December 31, 2021, the Company had a tax payable to Berkshire of $588 million and $124 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 March 31,
	2022		2021
Revenues	$	24	$	23
Expenditures	$	90	$	97

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 $761 million and $749 million recognized as investments related to TTX in its Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021, respectively.