Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. For the six-month periods ended June 30, 2024 and 2023, the Company declared and paid cash distributions of $2.1 billion and $1.1 billion to Berkshire, respectively. The Company made tax payments of $581 million and $664 million during the six-month period ended June 30, 2024 and 2023, respectively, while during both periods the Company received no tax refunds from Berkshire. As of June 30, 2024 and December 31, 2023, the Company had a tax payable to Berkshire of $152 million and a payable to Berkshire of $170 million, respectively.

North American railroads pay TTX Company (TTX) car hire to use TTX’s freight equipment to serve their customers. BNSF owns 17.4 percent of TTX while other North American railroads own the remaining interest. As the Company 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. The investment in TTX is recorded in other assets in the Consolidated Balance Sheets, and equity income or losses are recorded in materials and other in the Consolidated Statements of Income. The Company’s investment in TTX was $873 million and $848 million as of June 30, 2024 and December 31, 2023, respectively. The Company incurred car hire expenditures with TTX of $101 million and $96 million for the three-months and $198 million and $185 million for the six-months ended June 30, 2024 and 2023, respectively.