Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 01, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-11535 | ||
Entity Registrant Name | BURLINGTON NORTHERN SANTA FE, LLC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-1754839 | ||
Entity Address, Address Line One | 2650 Lou Menk Drive | ||
Entity Address, City or Town | Fort Worth | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76131 | ||
City Area Code | 800 | ||
Local Phone Number | 795-2673 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0000934612 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Entity Public Float | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 20,869 | $ 23,515 | $ 23,855 |
Operating expenses: | |||
Compensation and benefits | 4,609 | 5,347 | 5,394 |
Purchased services | 2,554 | 2,700 | 2,870 |
Depreciation and amortization | 2,476 | 2,403 | 2,317 |
Fuel | 1,789 | 2,944 | 3,346 |
Equipment rents | 664 | 758 | 732 |
Materials and other | 1,037 | 1,292 | 1,396 |
Total operating expenses | 13,129 | 15,444 | 16,055 |
Operating income | 7,740 | 8,071 | 7,800 |
Interest expense | 1,037 | 1,070 | 1,041 |
Other (income) expense, net | (89) | (249) | (104) |
Income before income taxes | 6,792 | 7,250 | 6,863 |
Income tax expense | 1,631 | 1,769 | 1,644 |
Net income | $ 5,161 | $ 5,481 | $ 5,219 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 5,161 | $ 5,481 | $ 5,219 |
Other comprehensive income: | |||
Change in pension and retiree health and welfare benefits, net of tax | (48) | 16 | (127) |
Change in accumulated other comprehensive income (loss) of equity method investees | 1 | (1) | 1 |
Other comprehensive income (loss), net of tax | (47) | 15 | (126) |
Total comprehensive income | $ 5,114 | $ 5,496 | $ 5,093 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,986 | $ 1,984 |
Accounts receivable, net | 1,243 | 1,401 |
Materials and supplies | 803 | 789 |
Other current assets | 91 | 113 |
Total current assets | 4,123 | 4,287 |
Property and equipment, net of accumulated depreciation of $13,175 and $12,101, respectively | 65,088 | 64,533 |
Goodwill | 14,851 | 14,851 |
Operating lease right-of-use assets | 1,928 | 2,285 |
Other assets | 2,670 | 2,618 |
Total assets | 88,660 | 88,574 |
Current liabilities: | ||
Accounts payable and other current liabilities | 3,434 | 3,634 |
Long-term debt and finance leases due within one year | 917 | 571 |
Total current liabilities | 4,351 | 4,205 |
Long-term debt and finance leases | 22,303 | 22,640 |
Deferred income taxes | 14,626 | 14,353 |
Operating lease liabilities | 1,286 | 1,632 |
Casualty and environmental liabilities | 428 | 442 |
Pension and retiree health and welfare liability | 314 | 285 |
Other liabilities | 1,348 | 1,297 |
Total liabilities | 44,656 | 44,854 |
Commitments and contingencies (see Note 12) | ||
Equity: | ||
Member’s equity | 43,906 | 43,575 |
Accumulated other comprehensive income (loss) | 98 | 145 |
Total equity | 44,004 | 43,720 |
Total liabilities and equity | 88,660 | 88,574 |
Accumulated depreciation; property and equipment | $ 13,175 | $ 12,101 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | |||
Net income | $ 5,161 | $ 5,481 | $ 5,219 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,476 | 2,403 | 2,317 |
Deferred income taxes | 289 | 553 | 381 |
Long-term casualty and environmental liabilities, net | (19) | (49) | (18) |
Other, net | (108) | (351) | (147) |
Changes in current assets and liabilities: | |||
Accounts receivable, net | 122 | 134 | (48) |
Materials and supplies | (14) | 4 | 10 |
Other current assets | 20 | (110) | (52) |
Accounts payable and other current liabilities | (27) | 122 | 246 |
Net cash provided by operating activities | 7,900 | 8,187 | 7,908 |
Investing Activities | |||
Capital expenditures excluding equipment | (2,819) | (3,193) | (2,918) |
Acquisition of equipment | (244) | (415) | (269) |
Purchases of investments and investments in time deposits | 0 | (6) | (27) |
Proceeds from sales of investments and maturities of time deposits | 32 | 42 | 45 |
Other, net | (32) | (170) | (11) |
Net cash used for investing activities | (3,063) | (3,742) | (3,180) |
Financing Activities | |||
Proceeds from issuance of long-term debt | 575 | 825 | 1,500 |
Payments on long-term debt and finance leases | (570) | (833) | (746) |
Cash distributions | (4,830) | (4,425) | (5,450) |
Other, net | (10) | (13) | (22) |
Net cash used for financing activities | (4,835) | (4,446) | (4,718) |
Increase (decrease) in cash and cash equivalents | 2 | (1) | 10 |
Cash and cash equivalents: | |||
Beginning of period | 1,984 | 1,985 | 1,975 |
End of period | 1,986 | 1,984 | 1,985 |
Supplemental Cash Flow Information | |||
Interest paid, net of amounts capitalized | 1,045 | 1,064 | 1,072 |
Capital investments accrued but not yet paid | 156 | 245 | 251 |
Income taxes paid, net of refunds | 1,278 | 1,196 | 905 |
Non-cash asset financing | $ 19 | $ 11 | $ 8 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Member’s Equity | Accumulated Other Comprehensive Income (Loss) | |
Balance at Dec. 31, 2017 | $ 43,009 | $ 42,778 | $ 231 | |
Increase (Decrease) in Total Equity [Roll Forward] | ||||
Cash distributions | (5,450) | (5,450) | 0 | |
Comprehensive income (loss), net of tax | 5,093 | 5,219 | (126) | |
Balance at Dec. 31, 2018 | 42,649 | 42,519 | 130 | |
Balance (Adoption of ASC Topic 606) at Dec. 31, 2018 | [1] | (3) | (3) | 0 |
Balance (Accounting Standards Update 2016-01) at Dec. 31, 2018 | [2] | 0 | 1 | (1) |
Balance (Reclassification upon early adoption of ASU 2018-02) at Dec. 31, 2018 | [3] | 0 | (26) | 26 |
Increase (Decrease) in Total Equity [Roll Forward] | ||||
Cash distributions | (4,425) | (4,425) | 0 | |
Comprehensive income (loss), net of tax | 5,496 | 5,481 | 15 | |
Balance at Dec. 31, 2019 | 43,720 | 43,575 | 145 | |
Increase (Decrease) in Total Equity [Roll Forward] | ||||
Cash distributions | (4,830) | (4,830) | 0 | |
Comprehensive income (loss), net of tax | 5,114 | 5,161 | (47) | |
Balance at Dec. 31, 2020 | $ 44,004 | $ 43,906 | $ 98 | |
[1] | a Accounting Standards Codification Topic 606 - Revenue from Contracts with Customers | |||
[2] | b Accounting Standards Update (ASU) No. 2016-01 Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities | |||
[3] | c ASU No. 2018-02 Income Statement - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
The Company
The Company | 12 Months Ended |
Dec. 31, 2020 | |
The Company [Abstract] | |
The Company | The Company Burlington Northern Santa Fe, LLC (BNSF or the Company) is a holding company that conducts no operating activities and owns no significant assets other than through its interests in its subsidiaries. BNSF’s principal, wholly-owned subsidiary is BNSF Railway Company (BNSF Railway), which operates one of the largest railroad networks in North America. BNSF Railway operates approximately 32,500 route miles of track (excluding multiple main tracks, yard tracks and sidings) in 28 states and also operates in three Canadian provinces. Through one operating transportation services segment, BNSF Railway transports a wide range of products and commodities including the transportation of Consumer Products, Industrial Products, Agricultural Products, and Coal, derived from manufacturing, agricultural, and natural resource industries, which constituted 37 percent, 26 percent, 24 percent, and 13 percent, respectively, of total freight revenues for the year ended December 31, 2020. These Consolidated Financial Statements include BNSF, BNSF Railway, and other majority-owned subsidiaries, all of which are separate legal entities. Burlington Northern Santa Fe Corporation was incorporated in the State of Delaware on December 16, 1994. On February 12, 2010, Berkshire Hathaway Inc., a Delaware corporation (Berkshire), acquired 100 percent of the outstanding shares of Burlington Northern Santa Fe Corporation common stock that it did not already own. The acquisition was completed through the merger (Merger) of a Berkshire wholly-owned merger subsidiary and Burlington Northern Santa Fe Corporation, with the surviving entity renamed Burlington Northern Santa Fe, LLC. Berkshire’s cost of acquiring BNSF was pushed-down to establish a new accounting basis for BNSF beginning as of February 13, 2010. Earnings per share data is not presented because BNSF has only one holder of its membership interests. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of BNSF and all subsidiaries in which BNSF holds a controlling financial interest, including its principal operating subsidiary, BNSF Railway. All intercompany accounts and transactions have been eliminated. Investments in companies that are not majority-owned are carried at cost or are accounted for under the equity method if the Company has the ability to exercise significant influence but does not have a controlling financial interest. The Company also evaluates its less than majority-owned investments pursuant to accounting guidance related to the consolidation of variable interest entities. We currently have no investments that require consolidation under this guidance. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions are periodically reviewed by management. Actual results could differ from those estimates. Revenue Recognition The Company’s primary source of revenue is freight rail transportation services. The primary performance obligation for the Company is to move freight from a point of origin to a point of destination for its customers. The performance obligations are represented by bills of lading which create a series of distinct services that have a similar pattern of transfer to the customer. The revenues for each performance obligation are based on various factors including the product being shipped, the origin and destination pair, and contract incentives which are outlined in various private rate agreements, common carrier public tariffs, interline foreign road agreements, and pricing quotes. The transaction price is generally a per car amount to transport cars from a certain origin to a certain destination. The associated freight revenues are recognized over time as the service is performed because the customer simultaneously receives and consumes the benefits of the service. The Company recognizes revenue based on the proportion of the service completed as of the balance sheet date. Bills for freight transportation services are generally issued to customers and paid within thirty days or less. As a result, no significant contract assets exist and there are no significant financing components in the Company’s revenue arrangements. Customer incentives, which are primarily provided for shipping a specified cumulative volume or shipping to/from specific locations, are recorded as a reduction to revenue on a pro-rata basis based on actual or projected future customer shipments. A small portion of customer incentive agreements have a component where a different discount amount is provided for different levels of volumes, resulting in variable consideration. To determine the transaction price in these cases, the Company estimates the amount of variable consideration at each reporting period utilizing the most likely amount based on historical trends as well as economic and other indicators. These incentives are ratably applied to all units using an estimate of how much volume the customer will ship under the customer incentive agreement. Both the variable consideration and the associated contract liabilities resulting from these types of customer incentives are immaterial. Other revenues are primarily generated from a wholly-owned, non-rail logistics subsidiary which provides logistics and transportation services and from accessorial services provided to railroad customers which are primarily storage and demurrage. The vast majority of revenues generated by the non-rail logistics subsidiary are recognized over time as the services are performed, and accessorial revenues are recognized when the service is performed. Accounts Receivable, Net Accounts receivable, net includes accounts receivable reduced by an allowance for credit losses. The allowance for credit losses is based on expected collectibility. Receivables are written off against allowances after all reasonable collection efforts are exhausted. Cash and Cash Equivalents All short-term investments with maturities of 90 days or less from the date of purchase are considered cash equivalents. Cash equivalents are stated at cost, which approximates market value because of the short maturity of these instruments. Materials and Supplies Materials and supplies, which consist mainly of rail, ties and other items for construction and maintenance of property and equipment, as well as diesel fuel, are valued at the lower of average cost or market. Goodwill Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate that the carrying amount may not be recoverable. A goodwill impairment loss would be recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. See Note 8 to the Consolidated Financial Statements for further information related to goodwill. Property and Equipment, Net BNSF’s railroad operations are highly capital intensive and its large base of homogeneous, network-type assets turns over on a continuous basis. BNSF self-constructs portions of its track structure and rebuilds certain classes of rolling stock. Each year, BNSF develops a capital program intended to enable BNSF to increase capacity, enhance the safety or efficiency of operations, extend the useful life or increase the value of its assets, gain strategic benefit, or provide new service offerings to customers. Costs are capitalized if they meet these criteria as well as the applicable minimum units of property, including costs for assets purchased or constructed throughout the year, along with all costs necessary to make the assets ready for their intended use. In addition to direct labor and materials, indirect costs that clearly relate to capital projects are also capitalized. Normal repairs and maintenance are charged to operating expense as incurred. Property and equipment are stated at cost and are depreciated on a straight-line basis over their estimated useful lives using the group method of depreciation in which all items with similar characteristics, use, and expected lives are grouped together in asset classes and depreciated using composite depreciation rates. The Company conducts depreciation studies, generally every three years for equipment and every six years for track structure and other roadway property, and implements study results prospectively. These detailed studies form the basis for the Company’s composite depreciation rates and take into account the following factors: • Statistical analysis of historical patterns of use and retirements of each of BNSF’s asset classes; • Evaluation of any expected changes in current operations and the outlook for continued use of the assets; • Evaluation of technological advances and changes to maintenance practices; and • Expected salvage to be received upon retirement. Under group depreciation, the historical cost net of salvage of depreciable property that is retired or replaced in the ordinary course of business is charged to accumulated depreciation, and no gain or loss is recognized. This historical cost of certain assets is estimated as it is impracticable to track individual, homogeneous, network-type assets. Historical costs are estimated by deflating current costs using the Producer Price Index (PPI) or a unit cost method. These methods closely correlate with the major costs of the items comprising the asset classes. Because of the number of estimates inherent in the depreciation and retirement processes and because it is impossible to precisely estimate each of these variables until a group of property is completely retired, BNSF monitors the estimated service lives of its assets and the accumulated depreciation associated with each asset class to ensure its depreciation rates are appropriate. For retirements of depreciable asset classes that do not occur in the normal course of business, a gain or loss may be recognized in operating expense if the retirement: (i) is unusual, (ii) is significant in amount, and (iii) varies significantly from the retirement profile identified through BNSF’s depreciation studies. Gains or losses from disposals of land and non-rail property are recognized at the time of their occurrence. During the three fiscal years presented, no material gains or losses were recognized due to the retirement of depreciable assets. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value is reduced to the estimated fair value as measured by the discounted cash flows. Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), using a modified retrospective approach for leases existing at or entered into after the effective date. The Company elected practical expedients permitted under the transition guidance, which allow entities to not reassess whether existing contracts are or contain leases, the classification of existing leases, initial direct costs for existing leases, or the existing accounting treatment for land easements. See Note 9 to the Consolidated Financial Statements for additional information. The Company has substantial lease commitments for locomotives, freight cars, office buildings, operating facilities, and other property. Many of the Company’s leases provide the option to purchase the leased item at fair market value or a fixed purchase price at the end of the lease, and some leases include early buyout options at a fixed purchase price. Also, many of the Company’s leases include both fixed rate and fair market value renewal options. As the implicit interest rate is not readily available for most operating leases, the Company uses its incremental borrowing rate based on information available at commencement date, including lease term, to determine the present value of lease payments. The Company has operating lease agreements that contain both lease and non-lease components, but only freight cars are accounted for as a single lease component. BNSF has applied the short-term lease exemption to all asset classes, and as a result, short-term leases are not recognized on the Consolidated Balance Sheets. Variable lease costs, sublease income, and lessor transactions are not significant. Assets held under finance leases are recorded at the net present value of the minimum lease payments at the inception of the lease. Amortization expense for finance leases, as well as leasehold improvements, is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease. Planned Major Maintenance Activities BNSF utilizes the deferral method of accounting for leased locomotive overhauls, which includes the complete refurbishment of the engine and related components to extend the useful life of the locomotive. Accordingly, BNSF has established an asset in property and equipment, net in the Consolidated Balance Sheets for overhauls that is amortized to expense using the straight-line method until the next overhaul is performed. Environmental Liabilities Liabilities for environmental cleanup costs are initially recorded when BNSF’s liability for environmental cleanup is both probable and reasonably estimable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. Estimates for these liabilities are undiscounted. Personal Injury Claims Liabilities for personal injury claims are initially recorded when the expected loss is both probable and reasonably estimable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. Liabilities recorded for unasserted personal injury claims, including those related to asbestos, are based on information currently available. Estimates of liabilities for personal injury claims are undiscounted. Income Taxes Deferred tax assets and liabilities are measured using the tax rates that apply to taxable income in the period in which the deferred tax asset or liability is expected to be realized or paid. Changes in the Company’s estimates regarding the statutory tax rate to be applied to the reversal of deferred tax assets and liabilities could materially affect the effective tax rate. Valuation allowances are established to reduce deferred tax assets if it is more likely than not that some or all of the deferred tax asset will not be realized. BNSF has not recorded a valuation allowance, as it believes that the deferred tax assets will be fully realized in the future. Investment tax credits are accounted for using the flow-through method. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. BNSF is included in the U.S. consolidated federal income tax return of Berkshire. In addition, BNSF files income tax returns in state, local, and foreign jurisdictions, as applicable. BNSF’s tax expense and liabilities have been computed on a stand alone basis, and all of its current federal income taxes payable is remitted to Berkshire. Employment Benefit Plans The Company estimates liabilities and expenses for pension and retiree health and welfare plans. Estimated amounts are based on historical information, current information, and estimates regarding future events and circumstances. Significant assumptions used in the valuation of pension and/or retiree health and welfare liabilities include the expected return on plan assets, discount rate, rate of increase in compensation levels, and the health care cost trend rate. Fair Value Measurements As defined under authoritative accounting guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Different valuation techniques may be appropriate under the circumstances to determine the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction. Market participants are assumed to be independent, knowledgeable, able, and willing to transact an exchange and not under duress. Nonperformance or credit risk is considered in determining the fair value of liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. The authoritative accounting guidance specifies a three-level hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. • Level 1–Quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. • Level 2–Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable market data. • Level 3–Valuations derived from valuation techniques in which one or more significant inputs are unobservable. |
Accounting Pronouncements
Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update No. 2018-14 (ASU 2018-14), Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in ASU 2018-14 modify the disclosure requirements for employers that sponsor defined benefit pension and other postretirement plans. BNSF adopted the standard as of December 31, 2020. Adoption of the standard did not have a material impact on the Company's Consolidated Financial Statement disclosures. In August 2018, the FASB issued Accounting Standards Update No. 2018-15 (ASU 2018-15), Intangibles—Goodwill and Other - Internal-Use Software (Subtopic 350-40). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires an entity in such an arrangement to capitalize costs for certain implementation activities in the application development stage, expense the capitalized implementation costs over the term of the hosting arrangement, and present the expense with the associated hosting fees in the Consolidated Statements of Income. BNSF adopted the standard as of January 1, 2020. Adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements and disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers The Company disaggregates revenue from contracts with customers based on the characteristics of the services provided and the types of products transported (in millions): Years ended December 31, 2020 2019 2018 Consumer Products $ 7,262 $ 7,860 $ 7,902 Industrial Products 5,039 6,068 5,967 Agricultural Products 4,822 4,685 4,697 Coal 2,655 3,715 4,012 Total freight revenues 19,778 22,328 22,578 Non-rail logistics subsidiary 688 770 856 Accessorial and other 403 417 421 Total other revenues 1,091 1,187 1,277 Total operating revenues $ 20,869 $ 23,515 $ 23,855 Contract assets and liabilities are immaterial. Receivables from contracts with customers is a component of accounts receivable, net on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, $1.0 billion and $1.1 billion , respectively, represent net receivables from contracts with customers. Remaining performance obligations primarily consist of in-transit freight revenues, which will be recognized in the next reporting period. As of December 31, 2020 and 2019, remaining performance obligations were $204 million and $175 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) was as follows (in millions): Years ended December 31, 2020 2019 2018 Current: Federal $ 1,111 $ 989 $ 1,037 State 231 226 228 Total current 1,342 1,215 1,265 Deferred: Federal 256 470 366 State 33 84 13 Total deferred 289 554 379 Total $ 1,631 $ 1,769 $ 1,644 Reconciliation of the U.S. federal statutory income tax rate to the effective tax rate was as follows: Years ended December 31, 2020 2019 2018 U.S. Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 3.0 3.4 2.8 Other, net — — 0.2 Effective tax rate 24.0 % 24.4 % 24.0 % The components of deferred tax assets and liabilities were as follows (in millions): December 31, December 31, Deferred tax liabilities: Property and equipment $ (14,622) $ (14,313) Operating lease right-of-use assets (393) (492) Other (489) (524) Total deferred tax liabilities (15,504) (15,329) Deferred tax assets: Operating lease liabilities 386 475 Compensation and benefits 165 158 Casualty and environmental 104 114 Other 223 229 Total deferred tax assets 878 976 Net deferred tax liability $ (14,626) $ (14,353) BNSF is included in the consolidated U.S. federal income tax return of Berkshire. BNSF’s tax expense and liabilities have been computed on a stand-alone basis, and all of its currently payable federal income taxes are remitted to Berkshire. See Note 14 to the Consolidated Financial Statements for information related to income taxes paid to Berkshire during 2020. All U.S. federal income tax returns of BNSF are closed for audit through the tax period ended December 31, 2011. BNSF is currently under examination for the years 2012 through 2016 as part of Berkshire's consolidated U.S. federal income tax return. BNSF and its subsidiaries have various state income tax returns in the process of examination, administrative appeal or litigation. State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. Uncertain Tax Positions The amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018, was $41 million, $46 million, and $50 million, respectively. The amount of unrecognized tax benefits as of December 31, 2020 that would affect the Company’s effective tax rate if recognized was $30 million, computed at the federal income tax rate expected to be applicable in the taxable period in which the amount may be incurred by the Company. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Years ended December 31, 2020 2019 2018 Beginning balance $ 46 $ 50 $ 57 Additions for tax positions related to current year 7 8 2 Additions (reductions) for tax positions taken in prior years (2) (6) 5 Additions (reductions) for tax positions as a result of: Settlements (3) — — Lapse of statute of limitations (7) (6) (14) Ending balance $ 41 $ 46 $ 50 It is expected that the amount of unrecognized tax benefits will change in the next twelve months; however, BNSF does not expect the change to have a significant impact on the results of operations, the financial position or the cash flows of the Company. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in income tax expense in the Consolidated Statements of Income. The Company had recorded a liability of approximately $5 million and $7 million for interest for the years ended December 31, 2020 and 2019, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net consists of freight and other receivables, reduced by an allowance for credit losses which is based upon expected collectibility. As of December 31, 2020 and 2019, $54 million and $51 million, respectively, of such allowances had been recorded. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net (in millions), and the corresponding ranges of estimated useful lives were as follows: December 31, December 31, Range of Land for transportation purposes $ 6,305 $ 6,280 — Track structure 26,657 25,599 15 – 50 years Other roadway a 30,862 30,525 10 – 100 years Locomotives 8,440 8,533 8 – 36 years Freight cars and other equipment 3,746 3,567 8 – 43 years Computer hardware, software and other 1,337 1,382 6 – 15 years Construction in progress 916 748 — Total cost 78,263 76,634 Less accumulated depreciation and amortization (13,175) (12,101) Property and equipment, net $ 65,088 $ 64,533 a Other roadway includes grading, bridges, signals, buildings and other road assets. The Consolidated Balance Sheets as of December 31, 2020 and 2019 included $1.2 billion and $1.1 billion, respectively, of capitalized right-of-use fixed assets and related accumulated amortization of $366 million and $338 million, respectively, under other assets. The Company capitalized $26 million, $15 million and $24 million of interest for the years ended December 31, 2020, 2019 and 2018, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As a result of the Merger on February 12, 2010, the Company recorded $14.8 billion of goodwill. Subsequent to the Merger, the Company has recorded additional amounts of goodwill as a result of acquisitions made by its non-rail logistics subsidiary. During the years ended December 31, 2020, 2019 and 2018, no impairment losses were incurred and there were no accumulated impairment losses related to goodwill as of both December 31, 2020 and 2019. As of both December 31, 2020 and 2019, the carrying value of goodwill was $14.9 billion. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The following table shows the components of lease cost (in millions): Lease Cost Years ended December 31, 2020 2019 Operating lease cost $ 451 $ 481 Finance lease cost: Amortization of right-of-use assets 38 37 Interest on lease liabilities 21 24 Short-term lease cost 24 85 Total lease cost $ 534 $ 627 Supplemental balance sheet information related to leases was as follows (in millions): Operating Leases December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 1,928 $ 2,285 Accounts payable and other current liabilities $ 391 $ 455 Operating lease liabilities 1,286 1,632 Total operating lease liabilities $ 1,677 $ 2,087 Finance Leases December 31, 2020 December 31, 2019 Property and equipment $ 804 $ 794 Accumulated depreciation (386) (349) Property and equipment, net $ 418 $ 445 Long-term debt due within one year $ 186 $ 48 Long-term debt 139 324 Total finance lease liabilities $ 325 $ 372 Supplemental cash flow information related to leases was as follows (in millions): Cash Flow Years ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows for operating leases $ 504 $ 412 Operating cash flows for finance leases $ 22 $ 25 Financing cash flows for finance leases $ 48 $ 47 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 27 $ 57 Other information related to leases was as follows: Other Information December 31, 2020 December 31, Weighted-average remaining lease term (in years): Operating leases 7.3 7.7 Finance leases 3.5 4.5 Weighted-average discount rate: Operating leases 3.7 % 3.7 % Finance leases 6.4 % 6.4 % Maturities of lease liabilities as of December 31, 2020 are summarized as follows (in millions): Operating Leases Finance Leases 2021 $ 424 $ 200 2022 344 36 2023 304 28 2024 256 24 2025 174 24 Thereafter 408 53 Total lease payments 1,910 365 Less amount representing interest (233) (40) Total $ 1,677 $ 325 Lease rental expense for all operating leases, excluding per diem leases, was $555 million for the year ended December 31, 2018. Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Current Liabilities | Accounts Payable and Other Current Liabilities Accounts payable and other current liabilities consisted of the following (in millions): December 31, December 31, Compensation and benefits payable $ 760 $ 751 Property and income tax liabilities 435 391 Operating leases - current 391 455 Accounts payable 310 413 Accrued interest 277 280 Customer incentives 224 231 Casualty and environmental liabilities 110 115 Rents and leases 101 86 Capital expenditure estimated liabilities 74 120 Other 752 792 Total $ 3,434 $ 3,634 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt outstanding, excluding finance leases, was as follows (in millions): December 31, 2020 a December 31, 2019 a Notes and debentures, due 2021 to 2097 $ 22,294 4.6 % $ 22,169 4.7 % Equipment obligations, due 2021 to 2028 424 3.6 447 3.6 Mortgage bonds, due 2021 to 2047 47 3.1 81 4.5 Financing obligations, due 2021 to 2029 196 6.1 192 6.1 Unamortized fair value adjustment under acquisition method accounting, discount, debt issuance costs, and other, net (66) (50) Total 22,895 22,839 Less current portion of long-term debt (731) 3.7 % (523) 5.6 % Long-term debt $ 22,164 $ 22,316 a Amounts represent debt outstanding and weighted average effective interest rates for 2020 and 2019, respectively. Maturities are as of December 31, 2020. As of December 31, 2020, certain BNSF Railway properties and other assets were subject to liens securing $47 million of mortgage debt. Certain locomotives and rolling stock of BNSF Railway were subject to equipment obligations. The Company is required to maintain certain financial covenants in conjunction with $500 million of certain issued and outstanding junior subordinated notes. As of December 31, 2020, the Company was in compliance with these financial covenants. 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). The following table provides fair value information for the Company’s debt obligations including principal cash flows, related weighted average interest rates by contractual maturity dates and fair value. The Company had no outstanding variable rate debt as of December 31, 2020. December 31, 2020 Maturity Date Total Fair Value 2021 2022 2023 2024 2025 Thereafter Fixed-rate debt $731 $1,528 $1,570 $1,236 $1,232 $16,598 $22,895 $29,348 Average interest rate 3.7% 4.0% 3.5% 3.6% 4.4% 4.8% 4.6% As of December 31, 2019, the fair value of fixed-rate debt was $26.6 billion. Notes and Debentures 2020 In April 2020, BNSF issued $575 million of 3.05 percent debentures due February 15, 2051. The net proceeds from the sale of the debentures were used for general corporate purposes, which may include but are not limited to working capital, capital expenditures, repayment of outstanding indebtedness and distributions. As of December 31, 2020, $1.1 billion remained authorized by the Board of Directors (the Board) to be issued through the SEC debt shelf offering process. 2019 In May 2019, BNSF filed a new automatic shelf registration with the SEC for the issuance of debt securities which became effective on May 8, 2019 and will remain effective for three years. In May 2019 , the Board authorized an additional $2.25 billion of debt securities that may be issued pursuant to the debt shelf registration statement filed with the SEC. In July 2019, BNSF issued $825 million of 3.55 percent debentures due February 15, 2050. The net proceeds from the sale of the debentures were used for general corporate purposes, which may include but are not limited to working capital, capital expenditures, repayment of outstanding indebtedness, and distributions. 2018 In August 2018, BNSF issued $750 million of 4.15 percent debentures due December 15, 2048, and in March 2018, BNSF issued $750 million of 4.05 percent debentures due June 15, 2048. The net proceeds from the sale of the debentures were used for general corporate purposes . Subsequent Event In January 2021, BNSF gave notice to the holders of its $250 million 4.10 percent debentures maturing on June 1, 2021, of its intention to redeem all of the outstanding debentures on March 1, 2021 at par plus accrued and unpaid interest as of the redemption date. Guarantees As of December 31, 2020, BNSF has not been called upon to perform under the guarantees specifically disclosed in this footnote and does not anticipate a significant performance risk in the foreseeable future. Debt and other obligations of non-consolidated entities guaranteed by the Company as of December 31, 2020, were as follows (dollars in millions): Guarantees BNSF Principal Maximum Maximum a Remaining Capitalized Obligations Kinder Morgan Energy Partners, L.P. 0.5 % $ 190 $ 190 $ — Termination of Ownership $ 2 b Chevron Phillips Chemical Company LP — % N/A d N/A d N/A d 7 $ 14 c a Reflects the maximum amount the Company could recover from a third party other than the counterparty. b Reflects capitalized obligations that are recorded on the Company’s Consolidated Balance Sheets. c Reflects the asset and corresponding liability for the fair value of these guarantees required by authoritative accounting guidance related to guarantees. d There is no cap to the liability that can be sought from BNSF for BNSF’s negligence or the negligence of the indemnified party. However, BNSF could receive reimbursement from certain insurance policies if the liability exceeds a certain amount. Kinder Morgan Energy Partners, L.P. Santa Fe Pacific Pipelines, Inc., an indirect, wholly-owned subsidiary of BNSF, has a guarantee in connection with its remaining special limited partnership interest in Santa Fe Pacific Pipeline Partners, L.P. (SFPP), a subsidiary of Kinder Morgan Energy Partners, L.P., to be paid only upon default by the partnership. All obligations with respect to the guarantee will cease upon termination of ownership rights, which would occur upon a put notice issued by BNSF or the exercise of the call rights by the general partners of SFPP. Chevron Phillips Chemical Company LP BNSF has an indemnity agreement with Chevron Phillips Chemical Company LP (Chevron Phillips), granting certain rights of indemnity from BNSF, in order to facilitate access to a storage facility. Under certain circumstances, payment under this obligation may be required in the event Chevron Phillips were to incur certain liabilities or other incremental costs resulting from trackage access. Indemnities In the ordinary course of business, BNSF enters into agreements with third parties that include indemnification clauses. The Company believes that these clauses are generally customary for the types of agreements in which they are included. At times, these clauses may involve indemnification for the acts of the Company, its employees and agents, indemnification for another party’s acts, indemnification for future events, indemnification based upon a certain standard of performance, indemnification for liabilities arising out of the Company’s use of leased equipment or other property, or other types of indemnification. Despite the uncertainty whether events which would trigger the indemnification obligations would ever occur, the Company does not believe that these indemnity agreements will have a material adverse effect on the Company’s results of operations, financial position or liquidity. Additionally, the Company believes that, due to lack of historical payment experience, the fair value of indemnities cannot be estimated with any amount of certainty and that the fair value of any such amount would be immaterial to the Consolidated Financial Statements. Unless separately disclosed above, no fair value liability related to indemnities has been recorded in the Consolidated Financial Statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Personal Injury BNSF’s personal injury liability includes the cost of claims for employee work-related injuries, third-party claims, and asbestos claims. BNSF records a liability for asserted and unasserted claims when the expected loss is both probable and reasonably estimable. Because of the uncertainty of the timing of future payments, the liability is undiscounted. Defense and processing costs, which are recorded on an as-reported basis, are not included in the recorded liability. Expense accruals and adjustments are classified as materials and other in the Consolidated Statements of Income. Personal injury claims by BNSF Railway employees are subject to the provisions of the Federal Employers’ Liability Act (FELA) rather than state workers’ compensation laws. Resolution of these cases under FELA’s fault-based system requires either a finding of fault by a jury or an out-of-court settlement. Third-party claims include claims by non-employees for compensatory damages and may, from time to time, include requests for punitive damages or treatment of the claim as a class action. BNSF estimates its personal injury liability claims and expense using standard actuarial methodologies based on the covered population, activity levels and trends in frequency, and the costs of covered injuries. The Company monitors actual experience against the forecasted number of claims to be received, the forecasted number of claims closing with payment, and expected claim payments and records adjustments as new events or changes in estimates develop. BNSF is party to asbestos claims by employees and non-employees who may have been exposed to asbestos. Because of the relatively finite exposed population, the Company has recorded an estimate for the full amount of probable exposure. This is determined through an actuarial analysis based on estimates of the exposed population, the number of claims likely to be filed, the number of claims that will likely require payment, and the cost per claim. Estimated filing and dismissal rates and average cost per claim are determined utilizing recent claim data and trends. The following table summarizes the activity in the Company’s accrued obligations for personal injury claims (in millions): Years ended December 31, 2020 2019 2018 Beginning balance $ 275 $ 308 $ 307 Accruals / changes in estimates 45 80 76 Payments (47) (113) (75) Ending balance $ 273 $ 275 $ 308 Current portion of ending balance $ 75 $ 75 $ 80 The amount recorded by the Company for the personal injury liability is based upon the best information currently available. Because of the uncertainty surrounding the ultimate outcome of personal injury claims, it is reasonably possible that future costs to resolve th ese claims may be different from the recorded amounts. The Company estimates that costs to resolve the liability may range from approximately $230 million to $325 million. Although the final outcome of these personal injury matters cannot be predicted with certainty, it is the opinion of BNSF that none of these items, when finally resolved, will have a material adverse effect on the Company's financial position or liquidity. However, the occurrence of a number of these items in the same period could have a material adverse effect on the results of operations in a particular quarter or fiscal year. Environmental BNSF is subject to extensive federal, state, and local environmental regulation. The Company’s operating procedures include practices to protect the environment from the risks inherent in railroad operations, which frequently involve transporting chemicals and other hazardous materials. Additionally, many of BNSF’s land holdings are or have been used for industrial or transportation-related purposes or leased to commercial or industrial companies whose activities may have resulted in discharges onto the property. Under federal (in particular, the Comprehensive Environmental Response, Compensation, and Liability Act) and state statutes, the Company may be held jointly and severally liable for cleanup and enforcement costs associated with a particular site without regard to fault or the legality of the original conduct. The Company participates in the study, cleanup, or both of environmental contamination at approximately 200 sites. Environmental costs may include, but are not limited to, site investigations, remediation, and restoration. The liability is recorded when the expected loss is both probable and reasonably estimable and is undiscounted due to uncertainty of the timing of future payments. Expense accruals and adjustments are classified as materials and other in the Consolidated Statements of Income. BNSF estimates the cost of cleanup efforts at its known environmental sites based on experience gained from cleanup efforts at similar sites, estimated percentage to closure ratios, possible remediation work plans, estimates of the costs and likelihood of each possible outcome, historical payment patterns, and benchmark patterns developed from data accumulated from industry and public sources. The Company monitors actual experience against expectations and records adjustments as new events or changes in estimates develop. The following table summarizes the activity in the Company’s accrued obligations for environmental matters (in millions): Years ended December 31, 2020 2019 2018 Beginning balance $ 282 $ 298 $ 317 Accruals / changes in estimates 2 5 — Payments (19) (21) (19) Ending balance $ 265 $ 282 $ 298 Current portion of ending balance $ 35 $ 40 $ 40 The amount recorded by the Company for the environmental liability is based upon the best information currently available. It has not been reduced by anticipated recoveries from third parties and includes both asserted and unasserted claims. BNSF’s total cleanup costs at these sites cannot be predicted with certainty due to various factors, such as the extent of corrective actions that may be required, evolving environmental laws and regulations, advances in environmental technology, the extent of other parties’ participation in cleanup efforts, developments in ongoing environmental analyses related to sites determined to be contaminated, and developments in environmental surveys and studies of contaminated sites. Because of the uncertainty surrounding various factors, it is reasonably possible that future costs to settle these claims may be different from the recorded amounts. The Company estimates that costs to settle the liability may range from approximately $220 million to $355 million. Although the final outcome of these environmental matters cannot be predicted with certainty, it is the opinion of BNSF that none of these items, when finally resolved, will have a material adverse effect on the Company’s financial position or liquidity. However, the occurrence of a number of these items in the same period could have a material adverse effect on the results of operations in a particular quarter or fiscal year. Other Claims and Litigation In addition to personal injury and environmental matters, BNSF and its subsidiaries are also parties to a number of other legal actions and claims, governmental proceedings, and private civil suits arising in the ordinary course of business, including those related to disputes and complaints involving certain transportation rates and charges. Some of the legal proceedings include claims for compensatory damages and may, from time to time, include requests for punitive damages or treatment of the claim as a class action. Although the final outcome of these matters cannot be predicted with certainty, it is the opinion of BNSF that none of these items, when finally resolved, will have a material adverse effect on the Company’s financial position or liquidity. However, the occurrence of a number of these items in the same period could have a material adverse effect on the results of operations in a particular quarter or fiscal year. Other Commitments In the normal course of business, the Company enters into long-term contractual requirements for future goods and services needed for the operations of the business. Such commitments are not in excess of expected requirements and are not reasonably likely to result in performance penalties or payments that would have a material adverse effect on the Company’s liquidity. BNSF Insurance Company BNSF has a consolidated, wholly-owned subsidiary, Burlington Northern Santa Fe Insurance Company, Ltd. (BNSFIC), that offers insurance coverage for certain risks, including FELA claims, railroad protective and force account insurance claims, certain excess general liability and property coverage, and certain other claims which are subject to reinsurance. BNSFIC has entered into annual reinsurance treaty agreements with several other companies. The treaty agreements insure workers’ compensation, general liability, auto liability, and FELA risk. In accordance with the agreements, BNSFIC cedes a portion of its FELA exposure through the treaties and assumes a proportionate share of the entire risk. Each year, BNSFIC reviews the objectives and performance of the treaties to determine its continued participation. The treaty agreements provide for certain protections against the risk of treaty participants’ non-performance. On an ongoing basis, BNSF and/or the treaty manager reviews the creditworthiness of each of the participants. The Company does not believe its exposure to treaty participants’ non-performance is material at this time. BNSFIC typically invests in time deposits, money market accounts and treasury bills. As of December 31, 2020 and 2019, there were $548 million and $492 million, respectively, related to these third-party investments which were classified as cash and cash equivalents on the Company’s Consolidated Balance Sheets. In 2019, the Company experienced significant flooding across parts of the network. The Company is insured for certain costs incurred as a result of the flooding, including property damage, business interruption, and extra expense. As of December 31, 2020, the Company had resolved the claim and received payment for the full $250 million that was recoverable. |
Employment Benefit Plans
Employment Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employment Benefit Plans | Employment Benefit Plans BNSF provides a funded, noncontributory qualified pension plan (BNSF Retirement Plan), which covers most non-union employees, and an unfunded non-tax-qualified pension plan (BNSF Supplemental Retirement Plan), which covers certain officers and other employees. The benefits under these pension plans are based on years of credited service and the highest consecutive sixty months of compensation for the last ten years of salaried employment with the Company. BNSF also provides a funded, noncontributory qualified pension plan which covers certain union employees of the former The Atchison, Topeka and Santa Fe Railway Company (Union Plan). The benefits under this pension plan are based on elections made at the time the plan was implemented. With respect to the funded plans, the Company's funding policy is to contribute annually not less than the regulatory minimum and not more than the maximum amount deductible for income tax purposes. The BNSF Retirement Plan, the BNSF Supplemental Retirement Plan, and the Union Plan are collectively referred to herein as the Pension Plans. During the first quarter of 2019, the Company amended the BNSF Retirement Plan and the BNSF Supplemental Retirement Plan. Non-union employees hired on or after April 1, 2019 are not eligible to participate in these retirement plans and instead receive an additional employer contribution as part of the qualified 401(k) plan based on the employees’ age and years of service. Current employees are being transitioned away from the retirement plans and upon transition are eligible for the additional employer contribution. As a result of the plan amendments, the Company recognized a curtailment gain of $120 million in the first quarter of 2019 consisting of $117 million for the reduction in projected benefit obligation and $3 million for the recognition of prior service credits. Components of the net (benefit) cost for the Pension Plans were as follows (in millions): Pension Benefits Years ended December 31, 2020 2019 2018 Service cost $ 21 $ 32 $ 46 Interest cost 70 81 82 Expected return on plan assets (167) (160) (157) Amortization of net loss 1 — 1 Amortization of prior service credits — (3) (1) Curtailment gain — (117) — Settlement loss (gain) (1) 5 (1) Net (benefit) cost recognized $ (76) $ (162) $ (30) The projected benefit obligation is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases. The following tables show the change in projected benefit obligation for the Pension Plans (in millions): Pension Benefits Change in Benefit Obligation December 31, December 31, Projected benefit obligation at beginning of period $ 2,295 $ 2,198 Service cost 21 32 Interest cost 70 81 Actuarial loss (gain) 262 279 Benefits paid (143) (142) Curtailments — (117) Settlements (6) (36) Projected benefit obligation at end of period 2,499 2,295 Component representing future salary increases (51) (44) Accumulated benefit obligation at end of period $ 2,448 $ 2,251 In both years ended December 31, 2020 and 2019, the change in benefit obligation resulting from actuarial losses is primarily the result of a reduction in the discount rate from the preceding year. The following tables show the change in plan assets of the Pension Plans (in millions): Pension Benefits Change in Plan Assets December 31, December 31, Fair value of plan assets at beginning of period $ 2,672 $ 2,336 Actual return (loss) on plan assets 383 482 Employer contributions a 10 — Benefits paid (143) (134) Settlements (6) (12) Fair value of plan assets at end of period $ 2,916 $ 2,672 a Employer contributions were classified as Other, Net under Operating Activities in the Company’s Consolidated Statements of Cash Flows. The following table shows the funded status of the Pension Plans, defined as plan assets less the projected benefit obligation (in millions): Pension Benefits December 31, December 31, Funded status (plan assets less projected benefit obligations) $ 417 $ 377 Of the net pension assets of $417 million and $377 million recognized as of December 31, 2020 and December 31, 2019, respectively, $9 million was included in other current liabilities as of both December 31, 2020 and 2019, and $520 million and $465 million were included in other assets as of December 31, 2020 and 2019, respectively. The BNSF Supplemental Retirement Plan and the Union Plan have accumulated and projected benefit obligations in excess of plan assets. The following table shows the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the plans (in millions): December 31, December 31, Projected benefit obligation $ 122 $ 113 Accumulated benefit obligation $ 114 $ 113 Fair value of plan assets $ 19 $ 25 Actuarial gains and losses and prior service credits are recognized in the Consolidated Balance Sheets through an adjustment to accumulated other comprehensive income (loss) (AOCI). The following tables show the pre-tax change in AOCI attributable to the components of the net cost and the change in benefit obligation (in millions): Pension Benefits Years ended December 31, Change in AOCI 2020 2019 2018 Beginning balance $ 228 $ 182 $ 371 Amortization of net loss 1 — 1 Amortization of prior service credits — (3) (1) Actuarial gain (loss) (46) 44 (188) Settlements (1) 5 (1) Ending balance $ 182 $ 228 $ 182 Pre-tax amounts currently recognized in AOCI consist of the following (in millions): Pension Benefits Years ended December 31, 2020 2019 Net gain (loss) $ 182 $ 227 Settlements — 1 Pre-tax amount recognized in AOCI $ 182 $ 228 The assumptions used in accounting for the Pension Plans were as follows: Pension Benefits Years ended December 31, Assumptions Used to Determine Net Cost 2020 2019 2018 Discount rate 3.2 % 4.2 % 3.6 % Expected long-term rate of return on plan assets 6.7 % 6.7 % 6.6 % Rate of compensation increase 3.1 % 3.5 % 3.6 % Pension Benefits Assumptions Used to Determine Benefit Obligations December 31, December 31, Discount rate 2.3 % 3.2 % Rate of compensation increase 3.1 % 3.1 % The Company determined the discount rate based on a yield curve that utilized year-end market yields of high-quality corporate bonds to develop spot rates that are matched against the plans’ expected benefit payments. The discount rate used for the 2021 calculation of pension net benefit cost decreased to 2.3 percent, which reflects market conditions at the December 31, 2020 measurement date. Various other assumptions including retirement and withdrawal rates, compensation increases, payment form and benefit commencement age are based upon a five-year experience study. In 2016, the Company obtained an updated study which had an immaterial impact on its pension and retiree health and welfare projected benefit obligation. The Company utilizes actuary-produced mortality tables and an improvement scale derived from the most recently available data, which were used in the calculation of its December 31, 2020 and 2019 liabilities. Pension plan assets are generally invested with the long-term objective of earning sufficient amounts to cover expected benefit obligations while assuming a prudent level of risk. Allocations may change as a result of changing market conditions and investment opportunities . The expected rates of return on plan assets reflect sub jective assessments of expected invested asset returns over a period of several years. Actual experience may differ from the assumed rates. The expected rate of return on pension plan assets was 6.7 percent for 2020 and will be 6.7 percent for 2021. The following table is an estimate of the impact on future net benefit cost that could result from hypothetical changes to the most sensitive assumptions, the discount rate and expected rate of return on plan assets: Sensitivity Analysis Change in 2021 Net Benefit Cost Hypothetical Discount Rate Change Pension 50 basis point decrease $ 6 million decrease 50 basis point increase $ 5 million increase Hypothetical Expected Rate of Return Pension 50 basis point decrease $ 13 million increase 50 basis point increase $ 13 million decrease Investments are stated at fair value. The various types of investments are valued as follows: (i) Cash and equivalents include investments in a money market fund and in a collective short-term investment fund, both of which are composed of high-grade instruments with short-term maturities. The money market fund is valued at the closing price reported by the active market on which the fund is traded (Level 1 input). The short-term investment fund is valued based on the price per share which is determined and published (although not publicly) and is the basis for current transactions (Level 2 input). (ii) Equity securities are valued at the last trade price at primary exchange close time on the last business day of the year (Level 1 input). If the last trade price is not available, values are based on bid, ask/offer quotes from contracted pricing vendors, brokers, or investment managers (Level 3 input or Level 2 if corroborated). (iii) Highly liquid government obligations, such as U.S. Treasury securities, are valued based on quoted prices in active markets for identical assets (Level 1 input). Other fixed maturity securities and government obligations are valued based on institutional bid evaluations from contracted vendors. Where available, vendors use observable market-based data to evaluate prices (Level 2 input). If observable market-based data is not available, unobservable inputs such as extrapolated data, proprietary models, and indicative quotes are used to arrive at estimated prices representing the price a dealer would pay for the security (Level 3 input). The following table summarizes the investments of the funded pension plans as of December 31, 2020, based on the inputs used to value them (in millions): Total as of Asset Category December 31, Level 1 Inputs a Level 2 Inputs a Level 3 Inputs a Cash and equivalents $ 19 $ 1 $ 18 $ — Equity securities b 2,634 2,634 — — Government obligations 254 254 — — Other fixed maturity securities 9 — 9 — Total c $ 2,916 $ 2,889 $ 27 $ — a See Note 2 to the Consolidated Financial Statements under the heading “Fair Value Measurements” for a definition of each of these levels of inputs. b As of December 31, 2020, three equity securities each exceeded 10 percent of total plan assets. These investments represent approximately 67 percent of total plan assets. c Excludes less than $1 million accrued for dividend and interest receivable. Comparative Prior Year Information The following table summarizes the investments of the funded pension plans as of December 31, 2019, based on the inputs used to value them (in millions): Total as of Asset Category December 31, Level 1 Inputs a Level 2 Inputs a Level 3 Inputs a Cash and equivalents $ 32 $ 2 $ 30 $ — Equity securities b 2,518 2,518 — — Government obligations 111 111 — — Other fixed maturity securities 11 — 11 — Total c $ 2,672 $ 2,631 $ 41 $ — a See Note 2 to the Consolidated Financial Statements under the heading “Fair Value Measurements” for a definition of each of these levels of inputs. b As of December 31, 2019, three equity securities each exceeded 10 percent of total plan assets. These investments represented approximately 58 percent of total plan assets. c Excludes less than $1 million accrued for dividend and interest receivable. The Company is not required to make contributions to its funded pension plans in 2021. The following table shows expected benefit payments from the Pension Plans for the next five fiscal years and the aggregate five years thereafter (in millions): Fiscal year Expected Pension Plan Benefit Payments a 2021 $ 151 2022 $ 141 2023 $ 136 2024 $ 132 2025 $ 129 2026-2030 $ 611 a Primarily consists of the BNSF Retirement Plan payments, which are made from the plan trust and do not represent an immediate cash outflow to the Company. Other Benefit Plans BNSF sponsors qualified 401(k) plans that cover substantially all employees and a non-qualified defined contribution plan that covers certain officers and other employees. BNSF matches contributions made by non-union employees and a limited number of union employees subject to certain percentage limits of the employees’ earnings. Non-union employees hired on or after April 1, 2019, and employees hired before that date who have transitioned from the BNSF Retirement Plan are also eligible for an additional employer contribution based on the employees’ age and years of service. The Company's 401(k) expense was $49 million, $41 million, and $36 million during the years ended December 31, 2020, 2019, and 2018, respectively. Certain salaried employees of BNSF who met age and years of service requirements and who began salaried employment prior to September 22, 1995 are eligible for medical benefits, including prescription drug coverage, during retirement. For pre-Medicare participants, the postretirement medical and prescription drug benefit is contributory and provides benefits to retirees and their covered dependents. For Medicare eligible participants, a yearly stipend is recorded in a Health Reimbursement Account (HRA) established on their behalf. Retirees can use these HRAs to reimburse themselves for eligible out-of-pocket expenses, as well as premiums for personal supplemental insurance policies. HRAs are unfunded, so no funds are expended by the Company until the reimbursements are paid to participants. As of December 31, 2020 and 2019, the projected benefit obligation associated with the retiree health and welfare plans was $237 million and $224 million, respectively. For each of the years ended December 31, 2020, 2019 and 2018, the service cost associated with the health and welfare plans was less than $1 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The companies identified as affiliates of BNSF include Berkshire and its subsidiaries. During the years ended December 31, 2020, 2019 and 2018, the Company declared and paid cash distributions of $4.8 billion, $4.4 billion and $5.5 billion, respectively, to Berkshire. For the years ended December 31, 2020, 2019 and 2018, the Company received tax refunds of $55 million, $1 million and $222 million, respectively, from Berkshire, and made tax payments of $1.1 billion, $934 million and $912 million, respectively, to Berkshire. As of December 31, 2020 and 2019, the Company had a payable to Berkshire of $70 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): Years ended December 31, 2020 2019 2018 Revenues $ 119 $ 158 $ 152 Expenditures $ 367 $ 386 $ 381 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 $703 million and $656 million recognized as investments related to TTX in its Consolidated Balance Sheets as of December 31, 2020 and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in accumulated other comprehensive income, a component of equity within the Consolidated Balance Sheets, rather than net income on the Consolidated Statements of Income. Under existing accounting standards, other comprehensive income may include, among other things, unrecognized gains and losses and prior service credit related to pension and other postretirement benefit plans. The following tables provide the components of accumulated other comprehensive income (loss) (AOCI) by component (in millions): Pension and Retiree Health and Welfare Benefit Items Equity Method Investments Total Balance as of December 31, 2017 $ 234 $ (3) $ 231 Other comprehensive income (loss), net before reclassifications (126) 1 (125) Amounts reclassified from AOCI: Reclassification due to ASU 2016-01 adoption — (1) (1) Reclassification due to ASU 2018-02 adoption 26 — 26 Amortization of actuarial losses a 1 — 1 Amortization of prior service credits a (3) — (3) Tax expense (benefit) 1 — 1 Balance as of December 31, 2018 $ 133 $ (3) $ 130 Other comprehensive income (loss), net before reclassifications 16 (1) 15 Amounts reclassified from AOCI: Amortization of prior service credits a (4) — (4) Settlement (gain) loss a 5 — 5 Tax expense (benefit) (1) — (1) Balance as of December 31, 2019 $ 149 $ (4) $ 145 Other comprehensive income (loss), net before reclassifications (48) 1 (47) Amounts reclassified from AOCI: Amortization of actuarial losses a 2 — 2 Settlement (gain) loss a (1) — (1) Tax expense (benefit) (1) — (1) Balance as of December 31, 2020 $ 101 $ (3) $ 98 a This accumulated other comprehensive income component is included in the computation of net periodic pension cost (see Note 13 for additional details). |
Quarterly Financial Data - Unau
Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2020 | |
Quaterly Financial Data Unaudited [Abstract] | |
Quarterly Financial Data - Unaudited | Quarterly Financial Data—Unaudited In millions 2020 Fourth Third Second First Revenues $ 5,674 $ 5,176 $ 4,602 $ 5,417 Operating income $ 2,176 $ 2,011 $ 1,730 $ 1,823 Net income $ 1,493 $ 1,347 $ 1,131 $ 1,190 2019 Fourth Third Second First Revenues $ 5,839 $ 6,021 $ 5,893 $ 5,762 Operating income $ 2,105 $ 2,180 $ 2,007 $ 1,779 Net income $ 1,424 $ 1,466 $ 1,338 $ 1,253 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe Consolidated Financial Statements include the accounts of BNSF and all subsidiaries in which BNSF holds a controlling financial interest, including its principal operating subsidiary, BNSF Railway. All intercompany accounts and transactions have been eliminated. Investments in companies that are not majority-owned are carried at cost or are accounted for under the equity method if the Company has the ability to exercise significant influence but does not have a controlling financial interest. The Company also evaluates its less than majority-owned investments pursuant to accounting guidance related to the consolidation of variable interest entities. We currently have no investments that require consolidation under this guidance. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions are periodically reviewed by management. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company’s primary source of revenue is freight rail transportation services. The primary performance obligation for the Company is to move freight from a point of origin to a point of destination for its customers. The performance obligations are represented by bills of lading which create a series of distinct services that have a similar pattern of transfer to the customer. The revenues for each performance obligation are based on various factors including the product being shipped, the origin and destination pair, and contract incentives which are outlined in various private rate agreements, common carrier public tariffs, interline foreign road agreements, and pricing quotes. The transaction price is generally a per car amount to transport cars from a certain origin to a certain destination. The associated freight revenues are recognized over time as the service is performed because the customer simultaneously receives and consumes the benefits of the service. The Company recognizes revenue based on the proportion of the service completed as of the balance sheet date. Bills for freight transportation services are generally issued to customers and paid within thirty days or less. As a result, no significant contract assets exist and there are no significant financing components in the Company’s revenue arrangements. Customer incentives, which are primarily provided for shipping a specified cumulative volume or shipping to/from specific locations, are recorded as a reduction to revenue on a pro-rata basis based on actual or projected future customer shipments. A small portion of customer incentive agreements have a component where a different discount amount is provided for different levels of volumes, resulting in variable consideration. To determine the transaction price in these cases, the Company estimates the amount of variable consideration at each reporting period utilizing the most likely amount based on historical trends as well as economic and other indicators. These incentives are ratably applied to all units using an estimate of how much volume the customer will ship under the customer incentive agreement. Both the variable consideration and the associated contract liabilities resulting from these types of customer incentives are immaterial. Other revenues are primarily generated from a wholly-owned, non-rail logistics subsidiary which provides logistics and transportation services and from accessorial services provided to railroad customers which are primarily storage and demurrage. The vast majority of revenues generated by the non-rail logistics subsidiary are recognized over time as the services are performed, and accessorial revenues are recognized when the service is performed. |
Accounts Receivable, Net | Accounts Receivable, NetAccounts receivable, net includes accounts receivable reduced by an allowance for credit losses. The allowance for credit losses is based on expected collectibility. Receivables are written off against allowances after all reasonable collection efforts are exhausted. |
Cash and Cash Equivalents | Cash and Cash Equivalents All short-term investments with maturities of 90 days or less from the date of purchase are considered cash equivalents. Cash equivalents are stated at cost, which approximates market value because of the short maturity of these instruments. |
Materials and Supplies | Materials and Supplies Materials and supplies, which consist mainly of rail, ties and other items for construction and maintenance of property and equipment, as well as diesel fuel, are valued at the lower of average cost or market. |
Goodwill | Goodwill Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate that the carrying amount may not be recoverable. A goodwill impairment loss would be recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. See Note 8 to the Consolidated Financial Statements for further information related to goodwill. |
Property and Equipment, Net | Property and Equipment, Net BNSF’s railroad operations are highly capital intensive and its large base of homogeneous, network-type assets turns over on a continuous basis. BNSF self-constructs portions of its track structure and rebuilds certain classes of rolling stock. Each year, BNSF develops a capital program intended to enable BNSF to increase capacity, enhance the safety or efficiency of operations, extend the useful life or increase the value of its assets, gain strategic benefit, or provide new service offerings to customers. Costs are capitalized if they meet these criteria as well as the applicable minimum units of property, including costs for assets purchased or constructed throughout the year, along with all costs necessary to make the assets ready for their intended use. In addition to direct labor and materials, indirect costs that clearly relate to capital projects are also capitalized. Normal repairs and maintenance are charged to operating expense as incurred. Property and equipment are stated at cost and are depreciated on a straight-line basis over their estimated useful lives using the group method of depreciation in which all items with similar characteristics, use, and expected lives are grouped together in asset classes and depreciated using composite depreciation rates. The Company conducts depreciation studies, generally every three years for equipment and every six years for track structure and other roadway property, and implements study results prospectively. These detailed studies form the basis for the Company’s composite depreciation rates and take into account the following factors: • Statistical analysis of historical patterns of use and retirements of each of BNSF’s asset classes; • Evaluation of any expected changes in current operations and the outlook for continued use of the assets; • Evaluation of technological advances and changes to maintenance practices; and • Expected salvage to be received upon retirement. Under group depreciation, the historical cost net of salvage of depreciable property that is retired or replaced in the ordinary course of business is charged to accumulated depreciation, and no gain or loss is recognized. This historical cost of certain assets is estimated as it is impracticable to track individual, homogeneous, network-type assets. Historical costs are estimated by deflating current costs using the Producer Price Index (PPI) or a unit cost method. These methods closely correlate with the major costs of the items comprising the asset classes. Because of the number of estimates inherent in the depreciation and retirement processes and because it is impossible to precisely estimate each of these variables until a group of property is completely retired, BNSF monitors the estimated service lives of its assets and the accumulated depreciation associated with each asset class to ensure its depreciation rates are appropriate. For retirements of depreciable asset classes that do not occur in the normal course of business, a gain or loss may be recognized in operating expense if the retirement: (i) is unusual, (ii) is significant in amount, and (iii) varies significantly from the retirement profile identified through BNSF’s depreciation studies. Gains or losses from disposals of land and non-rail property are recognized at the time of their occurrence. During the three fiscal years presented, no material gains or losses were recognized due to the retirement of depreciable assets. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the long-lived assets, the carrying value is reduced to the estimated fair value as measured by the discounted cash flows. |
Leases | Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), using a modified retrospective approach for leases existing at or entered into after the effective date. The Company elected practical expedients permitted under the transition guidance, which allow entities to not reassess whether existing contracts are or contain leases, the classification of existing leases, initial direct costs for existing leases, or the existing accounting treatment for land easements. See Note 9 to the Consolidated Financial Statements for additional information. The Company has substantial lease commitments for locomotives, freight cars, office buildings, operating facilities, and other property. Many of the Company’s leases provide the option to purchase the leased item at fair market value or a fixed purchase price at the end of the lease, and some leases include early buyout options at a fixed purchase price. Also, many of the Company’s leases include both fixed rate and fair market value renewal options. As the implicit interest rate is not readily available for most operating leases, the Company uses its incremental borrowing rate based on information available at commencement date, including lease term, to determine the present value of lease payments. The Company has operating lease agreements that contain both lease and non-lease components, but only freight cars are accounted for as a single lease component. BNSF has applied the short-term lease exemption to all asset classes, and as a result, short-term leases are not recognized on the Consolidated Balance Sheets. Variable lease costs, sublease income, and lessor transactions are not significant. Assets held under finance leases are recorded at the net present value of the minimum lease payments at the inception of the lease. Amortization expense for finance leases, as well as leasehold improvements, is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease. |
Planned Major Maintenance Activities | Planned Major Maintenance ActivitiesBNSF utilizes the deferral method of accounting for leased locomotive overhauls, which includes the complete refurbishment of the engine and related components to extend the useful life of the locomotive. Accordingly, BNSF has established an asset in property and equipment, net in the Consolidated Balance Sheets for overhauls that is amortized to expense using the straight-line method until the next overhaul is performed. |
Environmental Liabilities | Environmental Liabilities Liabilities for environmental cleanup costs are initially recorded when BNSF’s liability for environmental cleanup is both probable and reasonably estimable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. Estimates for these liabilities are undiscounted. |
Personal Injury Claims | Personal Injury Claims Liabilities for personal injury claims are initially recorded when the expected loss is both probable and reasonably estimable. Subsequent adjustments to initial estimates are recorded as necessary based upon additional information developed in subsequent periods. Liabilities recorded for unasserted personal injury claims, including those related to asbestos, are based on information currently available. Estimates of liabilities for personal injury claims are undiscounted. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are measured using the tax rates that apply to taxable income in the period in which the deferred tax asset or liability is expected to be realized or paid. Changes in the Company’s estimates regarding the statutory tax rate to be applied to the reversal of deferred tax assets and liabilities could materially affect the effective tax rate. Valuation allowances are established to reduce deferred tax assets if it is more likely than not that some or all of the deferred tax asset will not be realized. BNSF has not recorded a valuation allowance, as it believes that the deferred tax assets will be fully realized in the future. Investment tax credits are accounted for using the flow-through method. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. |
Employment Benefit Plans | Employment Benefit Plans The Company estimates liabilities and expenses for pension and retiree health and welfare plans. Estimated amounts are based on historical information, current information, and estimates regarding future events and circumstances. Significant assumptions used in the valuation of pension and/or retiree health and welfare liabilities include the expected return on plan assets, discount rate, rate of increase in compensation levels, and the health care cost trend rate. |
Fair Value Measurements | Fair Value Measurements As defined under authoritative accounting guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Different valuation techniques may be appropriate under the circumstances to determine the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction. Market participants are assumed to be independent, knowledgeable, able, and willing to transact an exchange and not under duress. Nonperformance or credit risk is considered in determining the fair value of liabilities. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. The authoritative accounting guidance specifies a three-level hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. • Level 1–Quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. • Level 2–Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable market data. • Level 3–Valuations derived from valuation techniques in which one or more significant inputs are unobservable. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company disaggregates revenue from contracts with customers based on the characteristics of the services provided and the types of products transported (in millions): Years ended December 31, 2020 2019 2018 Consumer Products $ 7,262 $ 7,860 $ 7,902 Industrial Products 5,039 6,068 5,967 Agricultural Products 4,822 4,685 4,697 Coal 2,655 3,715 4,012 Total freight revenues 19,778 22,328 22,578 Non-rail logistics subsidiary 688 770 856 Accessorial and other 403 417 421 Total other revenues 1,091 1,187 1,277 Total operating revenues $ 20,869 $ 23,515 $ 23,855 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) was as follows (in millions): Years ended December 31, 2020 2019 2018 Current: Federal $ 1,111 $ 989 $ 1,037 State 231 226 228 Total current 1,342 1,215 1,265 Deferred: Federal 256 470 366 State 33 84 13 Total deferred 289 554 379 Total $ 1,631 $ 1,769 $ 1,644 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the U.S. federal statutory income tax rate to the effective tax rate was as follows: Years ended December 31, 2020 2019 2018 U.S. Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 3.0 3.4 2.8 Other, net — — 0.2 Effective tax rate 24.0 % 24.4 % 24.0 % |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows (in millions): December 31, December 31, Deferred tax liabilities: Property and equipment $ (14,622) $ (14,313) Operating lease right-of-use assets (393) (492) Other (489) (524) Total deferred tax liabilities (15,504) (15,329) Deferred tax assets: Operating lease liabilities 386 475 Compensation and benefits 165 158 Casualty and environmental 104 114 Other 223 229 Total deferred tax assets 878 976 Net deferred tax liability $ (14,626) $ (14,353) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Years ended December 31, 2020 2019 2018 Beginning balance $ 46 $ 50 $ 57 Additions for tax positions related to current year 7 8 2 Additions (reductions) for tax positions taken in prior years (2) (6) 5 Additions (reductions) for tax positions as a result of: Settlements (3) — — Lapse of statute of limitations (7) (6) (14) Ending balance $ 41 $ 46 $ 50 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net (in millions), and the corresponding ranges of estimated useful lives were as follows: December 31, December 31, Range of Land for transportation purposes $ 6,305 $ 6,280 — Track structure 26,657 25,599 15 – 50 years Other roadway a 30,862 30,525 10 – 100 years Locomotives 8,440 8,533 8 – 36 years Freight cars and other equipment 3,746 3,567 8 – 43 years Computer hardware, software and other 1,337 1,382 6 – 15 years Construction in progress 916 748 — Total cost 78,263 76,634 Less accumulated depreciation and amortization (13,175) (12,101) Property and equipment, net $ 65,088 $ 64,533 a Other roadway includes grading, bridges, signals, buildings and other road assets. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following table shows the components of lease cost (in millions): Lease Cost Years ended December 31, 2020 2019 Operating lease cost $ 451 $ 481 Finance lease cost: Amortization of right-of-use assets 38 37 Interest on lease liabilities 21 24 Short-term lease cost 24 85 Total lease cost $ 534 $ 627 Supplemental cash flow information related to leases was as follows (in millions): Cash Flow Years ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows for operating leases $ 504 $ 412 Operating cash flows for finance leases $ 22 $ 25 Financing cash flows for finance leases $ 48 $ 47 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 27 $ 57 Other information related to leases was as follows: Other Information December 31, 2020 December 31, Weighted-average remaining lease term (in years): Operating leases 7.3 7.7 Finance leases 3.5 4.5 Weighted-average discount rate: Operating leases 3.7 % 3.7 % Finance leases 6.4 % 6.4 % |
Assets and Liabilities | Supplemental balance sheet information related to leases was as follows (in millions): Operating Leases December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 1,928 $ 2,285 Accounts payable and other current liabilities $ 391 $ 455 Operating lease liabilities 1,286 1,632 Total operating lease liabilities $ 1,677 $ 2,087 Finance Leases December 31, 2020 December 31, 2019 Property and equipment $ 804 $ 794 Accumulated depreciation (386) (349) Property and equipment, net $ 418 $ 445 Long-term debt due within one year $ 186 $ 48 Long-term debt 139 324 Total finance lease liabilities $ 325 $ 372 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2020 are summarized as follows (in millions): Operating Leases Finance Leases 2021 $ 424 $ 200 2022 344 36 2023 304 28 2024 256 24 2025 174 24 Thereafter 408 53 Total lease payments 1,910 365 Less amount representing interest (233) (40) Total $ 1,677 $ 325 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2020 are summarized as follows (in millions): Operating Leases Finance Leases 2021 $ 424 $ 200 2022 344 36 2023 304 28 2024 256 24 2025 174 24 Thereafter 408 53 Total lease payments 1,910 365 Less amount representing interest (233) (40) Total $ 1,677 $ 325 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and other current liabilities consisted of the following (in millions): December 31, December 31, Compensation and benefits payable $ 760 $ 751 Property and income tax liabilities 435 391 Operating leases - current 391 455 Accounts payable 310 413 Accrued interest 277 280 Customer incentives 224 231 Casualty and environmental liabilities 110 115 Rents and leases 101 86 Capital expenditure estimated liabilities 74 120 Other 752 792 Total $ 3,434 $ 3,634 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt outstanding, excluding finance leases, was as follows (in millions): December 31, 2020 a December 31, 2019 a Notes and debentures, due 2021 to 2097 $ 22,294 4.6 % $ 22,169 4.7 % Equipment obligations, due 2021 to 2028 424 3.6 447 3.6 Mortgage bonds, due 2021 to 2047 47 3.1 81 4.5 Financing obligations, due 2021 to 2029 196 6.1 192 6.1 Unamortized fair value adjustment under acquisition method accounting, discount, debt issuance costs, and other, net (66) (50) Total 22,895 22,839 Less current portion of long-term debt (731) 3.7 % (523) 5.6 % Long-term debt $ 22,164 $ 22,316 a Amounts represent debt outstanding and weighted average effective interest rates for 2020 and 2019, respectively. Maturities are as of December 31, 2020. |
Schedule of Maturities of Long-term Debt | The following table provides fair value information for the Company’s debt obligations including principal cash flows, related weighted average interest rates by contractual maturity dates and fair value. The Company had no outstanding variable rate debt as of December 31, 2020. December 31, 2020 Maturity Date Total Fair Value 2021 2022 2023 2024 2025 Thereafter Fixed-rate debt $731 $1,528 $1,570 $1,236 $1,232 $16,598 $22,895 $29,348 Average interest rate 3.7% 4.0% 3.5% 3.6% 4.4% 4.8% 4.6% |
Schedule of Guarantor Obligations | Debt and other obligations of non-consolidated entities guaranteed by the Company as of December 31, 2020, were as follows (dollars in millions): Guarantees BNSF Principal Maximum Maximum a Remaining Capitalized Obligations Kinder Morgan Energy Partners, L.P. 0.5 % $ 190 $ 190 $ — Termination of Ownership $ 2 b Chevron Phillips Chemical Company LP — % N/A d N/A d N/A d 7 $ 14 c a Reflects the maximum amount the Company could recover from a third party other than the counterparty. b Reflects capitalized obligations that are recorded on the Company’s Consolidated Balance Sheets. c Reflects the asset and corresponding liability for the fair value of these guarantees required by authoritative accounting guidance related to guarantees. d There is no cap to the liability that can be sought from BNSF for BNSF’s negligence or the negligence of the indemnified party. However, BNSF could receive reimbursement from certain insurance policies if the liability exceeds a certain amount. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table summarizes the activity in the Company’s accrued obligations for personal injury claims (in millions): Years ended December 31, 2020 2019 2018 Beginning balance $ 275 $ 308 $ 307 Accruals / changes in estimates 45 80 76 Payments (47) (113) (75) Ending balance $ 273 $ 275 $ 308 Current portion of ending balance $ 75 $ 75 $ 80 |
Accrued Obligations for Environmental Matters | The following table summarizes the activity in the Company’s accrued obligations for environmental matters (in millions): Years ended December 31, 2020 2019 2018 Beginning balance $ 282 $ 298 $ 317 Accruals / changes in estimates 2 5 — Payments (19) (21) (19) Ending balance $ 265 $ 282 $ 298 Current portion of ending balance $ 35 $ 40 $ 40 |
Employment Benefit Plans (Table
Employment Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Components of the net (benefit) cost for the Pension Plans were as follows (in millions): Pension Benefits Years ended December 31, 2020 2019 2018 Service cost $ 21 $ 32 $ 46 Interest cost 70 81 82 Expected return on plan assets (167) (160) (157) Amortization of net loss 1 — 1 Amortization of prior service credits — (3) (1) Curtailment gain — (117) — Settlement loss (gain) (1) 5 (1) Net (benefit) cost recognized $ (76) $ (162) $ (30) |
Schedule of Changes in Projected Benefit Obligations | The following tables show the change in projected benefit obligation for the Pension Plans (in millions): Pension Benefits Change in Benefit Obligation December 31, December 31, Projected benefit obligation at beginning of period $ 2,295 $ 2,198 Service cost 21 32 Interest cost 70 81 Actuarial loss (gain) 262 279 Benefits paid (143) (142) Curtailments — (117) Settlements (6) (36) Projected benefit obligation at end of period 2,499 2,295 Component representing future salary increases (51) (44) Accumulated benefit obligation at end of period $ 2,448 $ 2,251 |
Schedule of Changes in Plan Assets | The following tables show the change in plan assets of the Pension Plans (in millions): Pension Benefits Change in Plan Assets December 31, December 31, Fair value of plan assets at beginning of period $ 2,672 $ 2,336 Actual return (loss) on plan assets 383 482 Employer contributions a 10 — Benefits paid (143) (134) Settlements (6) (12) Fair value of plan assets at end of period $ 2,916 $ 2,672 a Employer contributions were classified as Other, Net under Operating Activities in the Company’s Consolidated Statements of Cash Flows. |
Schedule of Net Funded Status | The following table shows the funded status of the Pension Plans, defined as plan assets less the projected benefit obligation (in millions): Pension Benefits December 31, December 31, Funded status (plan assets less projected benefit obligations) $ 417 $ 377 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets | The following table shows the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the plans (in millions): December 31, December 31, Projected benefit obligation $ 122 $ 113 Accumulated benefit obligation $ 114 $ 113 Fair value of plan assets $ 19 $ 25 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following tables show the pre-tax change in AOCI attributable to the components of the net cost and the change in benefit obligation (in millions): Pension Benefits Years ended December 31, Change in AOCI 2020 2019 2018 Beginning balance $ 228 $ 182 $ 371 Amortization of net loss 1 — 1 Amortization of prior service credits — (3) (1) Actuarial gain (loss) (46) 44 (188) Settlements (1) 5 (1) Ending balance $ 182 $ 228 $ 182 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pre-tax amounts currently recognized in AOCI consist of the following (in millions): Pension Benefits Years ended December 31, 2020 2019 Net gain (loss) $ 182 $ 227 Settlements — 1 Pre-tax amount recognized in AOCI $ 182 $ 228 |
Defined Benefit Plan, Assumptions | The assumptions used in accounting for the Pension Plans were as follows: Pension Benefits Years ended December 31, Assumptions Used to Determine Net Cost 2020 2019 2018 Discount rate 3.2 % 4.2 % 3.6 % Expected long-term rate of return on plan assets 6.7 % 6.7 % 6.6 % Rate of compensation increase 3.1 % 3.5 % 3.6 % Pension Benefits Assumptions Used to Determine Benefit Obligations December 31, December 31, Discount rate 2.3 % 3.2 % Rate of compensation increase 3.1 % 3.1 % |
Sensitivity analysis of impact on future net benefit cost resulting from hypothetical change in assumptions | The following table is an estimate of the impact on future net benefit cost that could result from hypothetical changes to the most sensitive assumptions, the discount rate and expected rate of return on plan assets: Sensitivity Analysis Change in 2021 Net Benefit Cost Hypothetical Discount Rate Change Pension 50 basis point decrease $ 6 million decrease 50 basis point increase $ 5 million increase Hypothetical Expected Rate of Return Pension 50 basis point decrease $ 13 million increase 50 basis point increase $ 13 million decrease |
Schedule of Allocation of Plan Assets | The following table summarizes the investments of the funded pension plans as of December 31, 2020, based on the inputs used to value them (in millions): Total as of Asset Category December 31, Level 1 Inputs a Level 2 Inputs a Level 3 Inputs a Cash and equivalents $ 19 $ 1 $ 18 $ — Equity securities b 2,634 2,634 — — Government obligations 254 254 — — Other fixed maturity securities 9 — 9 — Total c $ 2,916 $ 2,889 $ 27 $ — a See Note 2 to the Consolidated Financial Statements under the heading “Fair Value Measurements” for a definition of each of these levels of inputs. b As of December 31, 2020, three equity securities each exceeded 10 percent of total plan assets. These investments represent approximately 67 percent of total plan assets. c Excludes less than $1 million accrued for dividend and interest receivable. Comparative Prior Year Information The following table summarizes the investments of the funded pension plans as of December 31, 2019, based on the inputs used to value them (in millions): Total as of Asset Category December 31, Level 1 Inputs a Level 2 Inputs a Level 3 Inputs a Cash and equivalents $ 32 $ 2 $ 30 $ — Equity securities b 2,518 2,518 — — Government obligations 111 111 — — Other fixed maturity securities 11 — 11 — Total c $ 2,672 $ 2,631 $ 41 $ — a See Note 2 to the Consolidated Financial Statements under the heading “Fair Value Measurements” for a definition of each of these levels of inputs. b As of December 31, 2019, three equity securities each exceeded 10 percent of total plan assets. These investments represented approximately 58 percent of total plan assets. c Excludes less than $1 million accrued for dividend and interest receivable. |
Schedule of Expected Benefit Payments | The following table shows expected benefit payments from the Pension Plans for the next five fiscal years and the aggregate five years thereafter (in millions): Fiscal year Expected Pension Plan Benefit Payments a 2021 $ 151 2022 $ 141 2023 $ 136 2024 $ 132 2025 $ 129 2026-2030 $ 611 a Primarily consists of the BNSF Retirement Plan payments, which are made from the plan trust and do not represent an immediate cash outflow to the Company. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes revenues earned by BNSF for services provided to related parties and expenditures to related parties (in millions): Years ended December 31, 2020 2019 2018 Revenues $ 119 $ 158 $ 152 Expenditures $ 367 $ 386 $ 381 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables provide the components of accumulated other comprehensive income (loss) (AOCI) by component (in millions): Pension and Retiree Health and Welfare Benefit Items Equity Method Investments Total Balance as of December 31, 2017 $ 234 $ (3) $ 231 Other comprehensive income (loss), net before reclassifications (126) 1 (125) Amounts reclassified from AOCI: Reclassification due to ASU 2016-01 adoption — (1) (1) Reclassification due to ASU 2018-02 adoption 26 — 26 Amortization of actuarial losses a 1 — 1 Amortization of prior service credits a (3) — (3) Tax expense (benefit) 1 — 1 Balance as of December 31, 2018 $ 133 $ (3) $ 130 Other comprehensive income (loss), net before reclassifications 16 (1) 15 Amounts reclassified from AOCI: Amortization of prior service credits a (4) — (4) Settlement (gain) loss a 5 — 5 Tax expense (benefit) (1) — (1) Balance as of December 31, 2019 $ 149 $ (4) $ 145 Other comprehensive income (loss), net before reclassifications (48) 1 (47) Amounts reclassified from AOCI: Amortization of actuarial losses a 2 — 2 Settlement (gain) loss a (1) — (1) Tax expense (benefit) (1) — (1) Balance as of December 31, 2020 $ 101 $ (3) $ 98 a This accumulated other comprehensive income component is included in the computation of net periodic pension cost (see Note 13 for additional details). |
Quarterly Financial Data - Un_2
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quaterly Financial Data Unaudited [Abstract] | |
Schedule of Quarterly Financial Information | In millions 2020 Fourth Third Second First Revenues $ 5,674 $ 5,176 $ 4,602 $ 5,417 Operating income $ 2,176 $ 2,011 $ 1,730 $ 1,823 Net income $ 1,493 $ 1,347 $ 1,131 $ 1,190 2019 Fourth Third Second First Revenues $ 5,839 $ 6,021 $ 5,893 $ 5,762 Operating income $ 2,105 $ 2,180 $ 2,007 $ 1,779 Net income $ 1,424 $ 1,466 $ 1,338 $ 1,253 |
The Company (Details)
The Company (Details) | 12 Months Ended | |
Dec. 31, 2020miNumber_of_provincesnumberOfSegmentsnumberOfHoldersOfMembershipInterestnumberOfStates | Feb. 12, 2010 | |
Nature Of Operations [Line Items] | ||
Rail route network distance (in miles) | mi | 32,500 | |
Number of states in which entity operates | numberOfStates | 28 | |
Number of Canadian provinces In which entity operates | Number_of_provinces | 3 | |
Number of operating transportation service segments | numberOfSegments | 1 | |
Consumer Products | ||
Nature Of Operations [Line Items] | ||
Percentage of total freight revenues from one operating segment | 37.00% | |
Industrial Products | ||
Nature Of Operations [Line Items] | ||
Percentage of total freight revenues from one operating segment | 26.00% | |
Agricultural Products | ||
Nature Of Operations [Line Items] | ||
Percentage of total freight revenues from one operating segment | 24.00% | |
Coal | ||
Nature Of Operations [Line Items] | ||
Percentage of total freight revenues from one operating segment | 13.00% | |
Burlington Northern Sante Fe Corporation | ||
Nature Of Operations [Line Items] | ||
Percentage of outstanding shares acquired by parent company | 100.00% | |
Holders of membership interests | numberOfHoldersOfMembershipInterest | 1 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 5,674 | $ 5,176 | $ 4,602 | $ 5,417 | $ 5,839 | $ 6,021 | $ 5,893 | $ 5,762 | $ 20,869 | $ 23,515 | $ 23,855 |
Non-rail logistics subsidiary | 688 | 770 | 856 | ||||||||
Accessorial and other | 403 | 417 | 421 | ||||||||
Total other revenues | 1,091 | 1,187 | 1,277 | ||||||||
Net receivables from contract with customers | 1,000 | 1,100 | 1,000 | 1,100 | |||||||
Remaining performance obligations | $ 204 | $ 175 | 204 | 175 | |||||||
Consumer Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 7,262 | 7,860 | 7,902 | ||||||||
Industrial Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 5,039 | 6,068 | 5,967 | ||||||||
Agricultural Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4,822 | 4,685 | 4,697 | ||||||||
Coal | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,655 | 3,715 | 4,012 | ||||||||
Total freight revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 19,778 | $ 22,328 | $ 22,578 |
Income Tax Expense(Benefit) (De
Income Tax Expense(Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 1,111 | $ 989 | $ 1,037 |
State | 231 | 226 | 228 |
Total current | 1,342 | 1,215 | 1,265 |
Deferred: | |||
Federal | 256 | 470 | 366 |
State | 33 | 84 | 13 |
Total deferred | 289 | 554 | 379 |
Total | $ 1,631 | $ 1,769 | $ 1,644 |
Reconciliation of Statutory and
Reconciliation of Statutory and Effective Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
U.S. Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal tax benefit | 3.00% | 3.40% | 2.80% |
Other, net | 0.00% | 0.00% | 0.20% |
Effective tax rate | 24.00% | 24.40% | 24.00% |
Components of Deferred Tax Asse
Components of Deferred Tax Assets / (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred Tax Liabilities, Property and Equipment | $ (14,622) | $ (14,313) |
Deferred Tax Liabilities, Operating Lease Right-Of-Use-Assets | (393) | (492) |
Deferred Tax Liabilities, Other | (489) | (524) |
Deferred Tax Liabilities, Gross | (15,504) | (15,329) |
Deferred Tax Assets, Operating Lease Liabilities | 386 | 475 |
Deferred Tax Assets, Compensation and Benefits | 165 | 158 |
Deferred Tax Assets, Casualty and environmental | 104 | 114 |
Deferred Tax Assets, Other | 223 | 229 |
Total Deferred Tax Assets | 878 | 976 |
Deferred Tax Liabilities, Net | $ (14,626) | $ (14,353) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination, Penalties and Interest Expense [Abstract] | ||||
Unrecognized tax benefits | $ 41 | $ 46 | $ 50 | $ 57 |
Unrecognized tax benefits that would impact effective tax rate | 30 | |||
Liability recorded for interest on income taxes expense | $ 5 | $ 7 |
Uncertain Tax Positions (Detail
Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 46 | $ 50 | $ 57 |
Additions for tax positions related to current year | 7 | 8 | 2 |
Additions (reductions) for tax positions taken in prior years | (2) | (6) | |
Additions (reductions) for tax positions taken in prior years | 5 | ||
Settlements | (3) | 0 | 0 |
Lapse of statute of limitations | (7) | (6) | (14) |
Ending balance | $ 41 | $ 46 | $ 50 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 54 | $ 51 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 78,263 | $ 76,634 | |
Less accumulated depreciation and amortization | (13,175) | (12,101) | |
Property and equipment, net | 65,088 | 64,533 | |
Right-of-use fixed assets | 1,200 | 1,100 | |
Accumulated amortization of right-of-use fixed assets | 366 | 338 | |
Interest costs capitalized | 26 | 15 | $ 24 |
Land for transportation purposes | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 6,305 | 6,280 | |
Track structure | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 26,657 | 25,599 | |
Other roadway | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 30,862 | 30,525 | |
Locomotives | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 8,440 | 8,533 | |
Freight cars and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 3,746 | 3,567 | |
Computer hardware, software and other | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 1,337 | 1,382 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 916 | $ 748 | |
Minimum | Track structure | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Minimum | Other roadway | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Minimum | Locomotives | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 8 years | ||
Minimum | Freight cars and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 8 years | ||
Minimum | Computer hardware, software and other | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 6 years | ||
Maximum | Track structure | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 50 years | ||
Maximum | Other roadway | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 100 years | ||
Maximum | Locomotives | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 36 years | ||
Maximum | Freight cars and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 43 years | ||
Maximum | Computer hardware, software and other | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years |
Goodwill Impairment and Carryin
Goodwill Impairment and Carrying Value (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 12, 2010 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 14,851,000,000 | $ 14,851,000,000 | $ 14,800,000,000 | |
Incurred impairment losses related to Goodwill | 0 | 0 | $ 0 | |
Accumulated impairment losses related to Goodwill | $ 0 | $ 0 |
Lease Cost (Details)
Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 451 | $ 481 |
Amortization of right-of-use assets | 38 | 37 |
Interest on lease liabilities | 21 | 24 |
Short-term lease cost | 24 | 85 |
Total lease cost | $ 534 | $ 627 |
Assets and Liabilities (Details
Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 1,928 | $ 2,285 |
Accounts payable and other current liabilities | 391 | 455 |
Operating lease liabilities | 1,286 | 1,632 |
Total operating lease liabilities | 1,677 | 2,087 |
Property and equipment | 804 | 794 |
Accumulated depreciation | (386) | (349) |
Property and equipment, net | 418 | 445 |
Long-term debt due within one year | 186 | 48 |
Long-term debt | 139 | 324 |
Total finance lease liabilities | $ 325 | $ 372 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 504 | $ 412 |
Operating cash flows for finance leases | 22 | 25 |
Financing cash flows for finance leases | 48 | 47 |
Right-of-use assets obtained in exchange for lease obligations, Operating leases | $ 27 | $ 57 |
Other Information (Details)
Other Information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term, Operating leases | 7 years 3 months 18 days | 7 years 8 months 12 days |
Weighted-average remaining lease term, Finance leases | 3 years 6 months | 4 years 6 months |
Weighted-average discount rate, Operating lease | 3.70% | 3.70% |
Weighted-average discount rate, Finance lease | 6.40% | 6.40% |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Operating Leases, 2021 | $ 424 | ||
Operating Leases, 2022 | 344 | ||
Operating Leases, 2023 | 304 | ||
Operating Leases, 2024 | 256 | ||
Operating Leases, 2025 | 174 | ||
Operating Leases, Thereafter | 408 | ||
Operating Leases, Total lease payments | 1,910 | ||
Operating Leases, Less amount representing interest | (233) | ||
Operating Leases, Total | 1,677 | $ 2,087 | |
Finance Lease, Liability, Payment, Due [Abstract] | |||
Finance Lease, 2021 | 200 | ||
Finance Lease, 2022 | 36 | ||
Finance Lease, 2023 | 28 | ||
Finance Lease, 2024 | 24 | ||
Finance Lease, 2025 | 24 | ||
Finance Lease, Thereafter | 53 | ||
Finance Lease, Total lease payments | 365 | ||
Finance Lease, Less amount representing interest | (40) | ||
Finance leases, Total | $ 325 | $ 372 | |
Lease rental expense | $ 555 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Compensation and benefits payable | $ 760 | $ 751 |
Property and income tax liabilities | 435 | 391 |
Operating leases - current | 391 | 455 |
Accounts payable | 310 | 413 |
Accrued interest | 277 | 280 |
Customer incentives | 224 | 231 |
Casualty and environmental liabilities | 110 | 115 |
Rents and leases | 101 | 86 |
Capital expenditure estimated liabilities | 74 | 120 |
Other | 752 | 792 |
Total | $ 3,434 | $ 3,634 |
Debt Outstanding (Details)
Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt | $ 22,895 | $ 22,839 |
Less current portion of long-term debt | (731) | (523) |
Long-term debt | $ 22,164 | $ 22,316 |
Total Debt, Weighted Average Effective Interest Rate | 4.60% | |
Current portion of long-term debt, Weighted Average Effective Interest Rate | 3.70% | 5.60% |
Notes and debentures, due 2021 to 2097 | ||
Debt Instrument [Line Items] | ||
Debt | $ 22,294 | $ 22,169 |
Total Debt, Weighted Average Effective Interest Rate | 4.60% | 4.70% |
Equipment obligations, due 2021 to 2028 | ||
Debt Instrument [Line Items] | ||
Debt | $ 424 | $ 447 |
Total Debt, Weighted Average Effective Interest Rate | 3.60% | 3.60% |
Mortgage bonds, due 2021 to 2047 | ||
Debt Instrument [Line Items] | ||
Debt | $ 47 | $ 81 |
Total Debt, Weighted Average Effective Interest Rate | 3.10% | 4.50% |
Financing obligations, due 2021 to 2029 | ||
Debt Instrument [Line Items] | ||
Debt | $ 196 | $ 192 |
Total Debt, Weighted Average Effective Interest Rate | 6.10% | 6.10% |
Unamortized fair value adjustment under acquisition method accounting, discount, debt issuance costs, and other, net | ||
Debt Instrument [Line Items] | ||
Debt | $ (66) | $ (50) |
Notes and Debentures Narrative
Notes and Debentures Narrative (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Jul. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | ||||||||
Debt | $ 22,895 | $ 22,839 | ||||||
Outstanding variable rate debt | 0 | |||||||
Debt, fair value | 29,348 | 26,600 | ||||||
Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Subordinated notes related to financial covenants | 500 | |||||||
SEC Debt Shelf Registration | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining amount of debt securities that may be issued | 1,100 | |||||||
The board of managers authorized additional debt securities for issuance | $ 2,250 | |||||||
Mortgage Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | $ 47 | $ 81 | ||||||
Three Point Zero Five Percent Due February 15, 2051 [Member] | Corporate Debt Securities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument issued amount | $ 575 | |||||||
Debt instrument interest rate | 3.05% | |||||||
Three Point Fifty Five Percent Debenture Due Feb 15 2050 | Corporate Debt Securities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument issued amount | $ 825 | |||||||
Debt instrument interest rate | 3.55% | |||||||
Four Point One Five Percent Debentures Due December 15, 2048 | Corporate Debt Securities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument issued amount | $ 750 | |||||||
Debt instrument interest rate | 4.15% | |||||||
Four Point Zero Five Percent Debentures Due June 15, 2048 | Corporate Debt Securities | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument issued amount | $ 750 | |||||||
Debt instrument interest rate | 4.05% | |||||||
Four Point One Zero Percent Due June 1, 2021 | Corporate Debt Securities | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument issued amount | $ 250 | |||||||
Debt instrument interest rate | 4.10% |
Debt Obligation Maturities (Det
Debt Obligation Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Maturities [Abstract] | ||
Debt maturities - 2021 | $ 731 | |
Debt maturities - 2022 | 1,528 | |
Debt maturities - 2023 | 1,570 | |
Debt maturities - 2024 | 1,236 | |
Debt maturities - 2025 | 1,232 | |
Debt maturities - Thereafter | 16,598 | |
Total | 22,895 | |
Fair Value | $ 29,348 | $ 26,600 |
Weighted Average Interest Rate on Debt and Capital Lease Obligations [Abstract] | ||
Weighted Average Interest Rate On Debt And Capital Lease Obligations - 2021 | 3.70% | |
Weighted Average Interest Rate On Debt And Capital Lease Obligations - 2022 | 4.00% | |
Weighted Average Interest Rate On Debt And Capital Lease Obligations - 2023 | 3.50% | |
Weighted Average Interest Rate On Debt And Capital Lease Obligations - 2024 | 3.60% | |
Weighted Average Interest Rate On Debt And Capital Lease Obligations - 2025 | 4.40% | |
Weighted Average Interest Rate On Debt And Capital Lease Obligations - Thereafter | 4.80% | |
Total Debt, Weighted Average Effective Interest Rate | 4.60% |
Guarantees (Details)
Guarantees (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Kinder Morgan Energy Partners, L.P. | Payment Guarantee | |
Guarantor Obligations [Line Items] | |
Principal Amount Guaranteed | $ 190 |
Maximum Future Payments | 190 |
Maximum Recourse Amount | 0 |
Capitalized Obligations | $ 2 |
Kinder Morgan Energy Partners, L.P. | Payment Guarantee | Kinder Morgan Energy Partners, L.P. | |
Guarantor Obligations [Line Items] | |
BNSF Ownership Percentage | 0.50% |
Chevron Phillips Chemical Company, LP | Indemnification Agreement | |
Guarantor Obligations [Line Items] | |
Remaining Term (in years) | 7 years |
Capitalized Obligations | $ 14 |
Chevron Phillips Chemical Company, LP | Indemnification Agreement | Chevron Phillips Chemical Company, LP | |
Guarantor Obligations [Line Items] | |
BNSF Ownership Percentage | 0.00% |
Commitments and Contingencies P
Commitments and Contingencies Personal Injury (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingency Accrual [Roll Forward] | |||
Beginning balance | $ 115 | ||
Ending balance | 110 | $ 115 | |
Personal Injury | |||
Loss Contingency Accrual [Roll Forward] | |||
Beginning balance | 275 | 308 | $ 307 |
Accruals / changes in estimates | 45 | 80 | 76 |
Payments | (47) | (113) | (75) |
Ending balance | 273 | 275 | 308 |
Current portion of ending balance | 75 | $ 75 | $ 80 |
Personal Injury | Minimum | |||
Loss Contingency Accrual [Roll Forward] | |||
Future costs to settle claims and associated liability | 230 | ||
Personal Injury | Maximum | |||
Loss Contingency Accrual [Roll Forward] | |||
Future costs to settle claims and associated liability | $ 325 |
Commitments and Contingencies E
Commitments and Contingencies Environmental (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)sites | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Number of sites the Company participates in environmental studies, cleanup or both | sites | 200 | ||
Environmental Issue | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | $ 282 | $ 298 | $ 317 |
Accruals / changes in estimates | 2 | 5 | 0 |
Payments | (19) | (21) | (19) |
Ending balance | 265 | 282 | 298 |
Current portion of ending balance | 35 | $ 40 | $ 40 |
Environmental Issue | Minimum | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Future costs to settle claims and associated liability | 220 | ||
Environmental Issue | Maximum | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Future costs to settle claims and associated liability | $ 355 |
Commitments and Contingencies B
Commitments and Contingencies BNSF Insurance Company (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Cash and cash equivalents | $ 1,986 | $ 1,984 |
Insurance Recoveries | 250 | |
BNSF Insurance Company | Commercial Paper, Bank Time Deposits, and Money Market Funds | ||
Loss Contingencies [Line Items] | ||
Cash and cash equivalents | $ 548 | $ 492 |
Employment Benefit Plans Net Co
Employment Benefit Plans Net Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of months for highest consecutive compensation | 60 months | |||
Number of years of salaried employees to qualify for pension plan retirement | 10 years | |||
Reduction in projected benefit obligation | $ 0 | $ 117 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment gain | $ 120 | 0 | 117 | $ 0 |
Reduction in projected benefit obligation | 117 | |||
Amortization of prior service credits | 0 | 3 | 1 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 21 | 32 | 46 | |
Interest cost | 70 | 81 | 82 | |
Expected return on plan assets | (167) | (160) | (157) | |
Amortization of net loss | 1 | 0 | 1 | |
Amortization of prior service credits | 3 | 0 | (3) | (1) |
Curtailment gain | $ (120) | 0 | (117) | 0 |
Settlement loss (gain) | (1) | 5 | (1) | |
Net (benefit) cost recognized | $ (76) | $ (162) | $ (30) |
Employment Benefit Plans Change
Employment Benefit Plans Change in Benefit Obligation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Curtailments | $ 0 | $ (117) | ||
Pension Benefits | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of period | $ 2,198 | 2,295 | 2,198 | |
Service cost | 21 | 32 | $ 46 | |
Interest cost | 70 | 81 | 82 | |
Actuarial loss (gain) | 262 | 279 | ||
Benefits paid | (143) | (142) | ||
Curtailments | $ (117) | |||
Settlements | (6) | (36) | ||
Projected benefit obligation at end of period | 2,499 | 2,295 | $ 2,198 | |
Component representing future salary increases | (51) | (44) | ||
Accumulated benefit obligation at end of period | $ 2,448 | $ 2,251 |
Employment Benefit Plans Chan_2
Employment Benefit Plans Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Net pension assets included in other current liabilities | $ 9 | $ 9 |
Net pension assets included in other assets | 520 | 465 |
Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 2,672 | 2,336 |
Actual return (loss) on plan assets | 383 | 482 |
Employer contributions | 10 | 0 |
Benefits paid | (143) | (134) |
Settlements | (6) | (12) |
Fair value of plan assets at measurement date | 2,916 | 2,672 |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Funded status (plan assets less projected benefit obligations) | $ 417 | $ 377 |
Employment Benefit Plans Plans
Employment Benefit Plans Plans with ABO in Excess of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 122 | $ 113 |
Accumulated benefit obligation | 114 | 113 |
Fair value of plan assets | $ 19 | $ 25 |
Employment Benefit Plans AOCI (
Employment Benefit Plans AOCI (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Accumulated Other Comprehensive Income Loss [Roll Forward] | |||||
Beginning balance | $ 228 | $ 182 | $ 371 | ||
Amortization of net loss | 1 | 0 | 1 | ||
Amortization of prior service credits | 0 | (3) | (1) | ||
Actuarial gain (loss) | (46) | 44 | (188) | ||
Settlements | (1) | 5 | (1) | ||
Ending balance | 182 | 228 | 182 | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Net gain (loss) | $ 182 | $ 227 | |||
Settlements | 0 | 1 | |||
Pre-tax amount recognized in AOCI | $ 182 | $ 182 | $ 182 | $ 182 | $ 228 |
Employment Benefit Plans Assump
Employment Benefit Plans Assumptions Used (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||
Discount rate, used to determine net cost | 3.20% | 4.20% | 3.60% | |
Expected long-term rate of return on plan assets, used to determine net cost | 6.70% | 6.70% | 6.60% | |
Rate of compensation increase, used to determine net cost | 3.10% | 3.50% | 3.60% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||
Discount rate, used to determine benefit obligations | 2.30% | 3.20% | ||
Rate of compensation increase, used to determine net cost | 3.10% | 3.10% | ||
Assumptions Sensitivity Analysis [Abstract] | ||||
Effect of 50 basis point decrease in discount rate | $ 6 | |||
Effect of 50 basis point increase in discount rate | 5 | |||
Effect of 50 basis point decrease in rate of return on plan assets | 13 | |||
Effect of 50 basis point increase in rate of return on plan assets | $ 13 | |||
Forecast | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||
Discount rate, used to determine net cost | 2.30% | |||
Expected long-term rate of return on plan assets, used to determine net cost | 6.70% |
Employment Benefit Plans Plan A
Employment Benefit Plans Plan Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Equity securities exceeding 10 percent of plan assets | three | three | |
Percent of total assets that equity securities exceeding 10 percent of plan assets represent | 10.00% | 10.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 67.00% | 58.00% | |
Accrued dividend and interest receivable, Less than | $ 1,000,000 | $ 1,000,000 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 2,916,000,000 | 2,672,000,000 | $ 2,336,000,000 |
Pension Benefits | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 2,889,000,000 | 2,631,000,000 | |
Pension Benefits | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 27,000,000 | 41,000,000 | |
Pension Benefits | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 0 | 0 | |
Pension Benefits | Cash and equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 19,000,000 | 32,000,000 | |
Pension Benefits | Cash and equivalents | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 1,000,000 | 2,000,000 | |
Pension Benefits | Cash and equivalents | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 18,000,000 | 30,000,000 | |
Pension Benefits | Cash and equivalents | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 0 | 0 | |
Pension Benefits | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 2,634,000,000 | 2,518,000,000 | |
Pension Benefits | Equity Securities | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 2,634,000,000 | 2,518,000,000 | |
Pension Benefits | Equity Securities | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 0 | 0 | |
Pension Benefits | Equity Securities | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 0 | 0 | |
Pension Benefits | Government obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 254,000,000 | 111,000,000 | |
Pension Benefits | Government obligations | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 254,000,000 | 111,000,000 | |
Pension Benefits | Government obligations | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 0 | 0 | |
Pension Benefits | Government obligations | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 0 | 0 | |
Pension Benefits | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 9,000,000 | 11,000,000 | |
Pension Benefits | Other fixed maturity securities | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 0 | 0 | |
Pension Benefits | Other fixed maturity securities | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | 9,000,000 | 11,000,000 | |
Pension Benefits | Other fixed maturity securities | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets Excluding Accrued Dividend And Interest Receivable | $ 0 | $ 0 |
Employment Benefit Plans Expect
Employment Benefit Plans Expected Benefit Payments (Details) - Pension Benefits $ in Millions | Dec. 31, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments, 2021 | $ 151 |
Expected benefit payments, 2022 | 141 |
Expected benefit payments, 2023 | 136 |
Expected benefit payments, 2024 | 132 |
Expected benefit payments, 2025 | 129 |
Expected benefit payments, 2026 - 2030 | $ 611 |
Employment Benefit Plans Other
Employment Benefit Plans Other Details (Details) number in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
401(k) matching expense | $ 49 | $ 41 | $ 36 |
Multi-employer benefit plans, employer contribution cost | $ 46 | $ 59 | $ 64 |
Average number of employees covered under multi-employer benefit plans | 33 | 37 | 37 |
Retiree Health and Welfare Benefits | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | $ 237 | $ 224 | |
Service cost | $ 1 | $ 1 | $ 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Cash distributions declared and paid | $ 4,830 | $ 4,425 | $ 5,450 |
Revenues earned for services provided to related parties | 119 | 158 | 152 |
Expenditures to related parties | $ 367 | 386 | 381 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Ownership Percentage in TTX Company | 17.30% | ||
Investments related to TTX | $ 703 | 656 | |
Parent Company | |||
Related Party Transaction [Line Items] | |||
Cash distributions declared and paid | 4,800 | 4,400 | 5,500 |
Tax Refunds from Parent Company | 55 | 1 | 222 |
Tax payments to parent company | 1,100 | 934 | $ 912 |
Payable to parent company | $ 70 | $ 31 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Balance | $ 145 | $ 130 | $ 231 |
Other comprehensive income (loss), net before reclassifications | (47) | 15 | (125) |
Reclassification AOCI, Tax | (1) | (1) | 1 |
Balance | 98 | 145 | 130 |
Amortization of net gain | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | 2 | 1 | |
Amortization of prior service credits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | (4) | (3) | |
Settlement (gain) lossa | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | (1) | 5 | |
Reclassification due to ASU 2016-01 adoption | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification due to ASU adoption | 1 | ||
Reclassification due to ASU 2018-02 adoption | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification due to ASU adoption | (26) | ||
Equity Method Investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Balance | (4) | (3) | (3) |
Other comprehensive income (loss), net before reclassifications | 1 | (1) | 1 |
Reclassification AOCI, Tax | 0 | 0 | 0 |
Balance | (3) | (4) | (3) |
Equity Method Investments | Amortization of net gain | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | 0 | 0 | |
Equity Method Investments | Amortization of prior service credits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | 0 | 0 | |
Equity Method Investments | Settlement (gain) lossa | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | 0 | 0 | |
Equity Method Investments | Reclassification due to ASU 2016-01 adoption | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification due to ASU adoption | 1 | ||
Equity Method Investments | Reclassification due to ASU 2018-02 adoption | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification due to ASU adoption | 0 | ||
Pension and Retiree Health and Welfare Benefit Items | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Balance | 149 | 133 | 234 |
Other comprehensive income (loss), net before reclassifications | (48) | 16 | (126) |
Reclassification AOCI, Tax | (1) | (1) | 1 |
Balance | 101 | 149 | 133 |
Pension and Retiree Health and Welfare Benefit Items | Amortization of net gain | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | 2 | 1 | |
Pension and Retiree Health and Welfare Benefit Items | Amortization of prior service credits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | (4) | (3) | |
Pension and Retiree Health and Welfare Benefit Items | Settlement (gain) lossa | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income | $ (1) | $ 5 | |
Pension and Retiree Health and Welfare Benefit Items | Reclassification due to ASU 2016-01 adoption | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification due to ASU adoption | 0 | ||
Pension and Retiree Health and Welfare Benefit Items | Reclassification due to ASU 2018-02 adoption | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification due to ASU adoption | $ (26) |
Quarterly Financial Data - Un_3
Quarterly Financial Data - Unaudited (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quaterly Financial Data Unaudited [Abstract] | |||||||||||
Revenues | $ 5,674 | $ 5,176 | $ 4,602 | $ 5,417 | $ 5,839 | $ 6,021 | $ 5,893 | $ 5,762 | $ 20,869 | $ 23,515 | $ 23,855 |
Operating income | 2,176 | 2,011 | 1,730 | 1,823 | 2,105 | 2,180 | 2,007 | 1,779 | 7,740 | 8,071 | 7,800 |
Net income | $ 1,493 | $ 1,347 | $ 1,131 | $ 1,190 | $ 1,424 | $ 1,466 | $ 1,338 | $ 1,253 | $ 5,161 | $ 5,481 | $ 5,219 |