Debt

9 Months Ended

Sep. 30, 2025

Debt Disclosure [Abstract]

Debt

Debt

Notes and Debentures

In May 2025, the Registrant filed a new automatic shelf registration statement with the Securities and Exchange Commission (SEC) that became effective on May 5, 2025, and will remain effective for three years.

In June 2025, the Registrant issued $900 million of 5.800 percent debentures due March 15, 2056. The net proceeds from the sale of the debentures will be used for general corporate purposes, which may include but are not limited to working capital, capital expenditures, repayment of outstanding indebtedness, and distributions.

In August 2025, the Board of Directors authorized an additional $3.0 billion of debt securities that may be issued pursuant to the debt shelf registration statement filed with the SEC.

As of September 30, 2025, $3.75 billion remained authorized by the Board of Directors to be issued through the 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 September 30, 2025, the Registrant was in compliance with these financial covenants.

Fair Value of Debt Instruments

As of September 30, 2025 and December 31, 2024, the fair value of BNSF’s debt, excluding finance leases, was $21.8 billion and $21.1 billion, respectively, while the book value as of both September 30, 2025 and December 31, 2024, which also excludes finance leases, was $23.4 billion. 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).