Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

Debt

Notes and Debentures

As of March 31, 2023, $1.55 billion remained authorized by the Board of Directors to be issued through the Securities and Exchange Commission debt shelf offering process.

The Registrant is required to maintain certain financial covenants in conjunction with $500 million of certain issued and outstanding junior subordinated notes. As of March 31, 2023, the Registrant was in compliance with these financial covenants.

Fair Value of Debt Instruments

As of both March 31, 2023 and December 31, 2022, the fair value of BNSF’s debt, excluding finance leases, was $21.5 billion, while the book value, which also excludes finance leases, was $22.6 billion and $23.3 billion, respectively. The fair value of BNSF’s debt is primarily based on market value price models using observable market-based data for the same or similar issues, or on the estimated rates that would be offered to BNSF for debt of the same remaining maturities (Level 2 inputs).