Document/ExhibitDescriptionPagesSize 1: 10-Q Quarterly Report HTML 711K
2: EX-31.1 Section 302 Certification HTML 18K
3: EX-31.2 Section 302 Certification HTML 18K
4: EX-32.1 Section 906 CEO and CFO Certification HTML 17K
10: R1 Cover Page HTML 61K
11: R2 Consolidated Statements of Income HTML 64K
12: R3 Consolidated Statements of Comprehensive Income HTML 42K
13: R4 Consolidated Balance Sheets HTML 105K
14: R5 Consolidated Balance Sheets (Parenthetical) HTML 16K
15: R6 Consolidated Statements of Cash Flows HTML 96K
16: R7 Consolidated Statements of Changes in Equity HTML 36K
17: R8 Accounting Policies and Interim Results HTML 19K
18: R9 Revenue from Contracts with Customers HTML 44K
19: R10 Accounts Receivable, Net HTML 16K
20: R11 Debt HTML 23K
21: R12 Commitments and Contingencies HTML 49K
22: R13 Employment Benefit Plans HTML 39K
23: R14 Related Party Transactions HTML 19K
24: R15 Accumulated Other Comprehensive Income HTML 42K
25: R16 Revenue from Contracts with Customers (Tables) HTML 41K
26: R17 Commitments and Contingencies (Tables) HTML 37K
27: R18 Employment Benefit Plans (Tables) HTML 33K
28: R19 Accumulated Other Comprehensive Income (Tables) HTML 41K
29: R20 Accounting Policies and Interim Results (Details) HTML 19K
30: R21 Revenue from Contracts with Customers HTML 37K
Disaggregation of Revenue (Details)
31: R22 Revenue from Contracts with Customers Disclosure HTML 16K
of contract asset and liability (Details)
32: R23 Revenue from Contracts with Customers Remaining HTML 16K
performance obligations (Details)
33: R24 Accounts Receivable, Net Allowance for Credit HTML 17K
Losses (Details)
34: R25 Debt Notes and Debentures (Details) HTML 29K
35: R26 Debt Fair Value of Debt Instruments (Details) HTML 20K
36: R27 Commitments and Contingencies Personal Injury HTML 32K
(Details)
37: R28 Commitments and Contingencies Environmental HTML 37K
(Details)
38: R29 Commitment and Contingencies Other Claims and HTML 18K
Litigation (Details)
39: R30 Commitments and Contingencies Insurance (Details) HTML 21K
40: R31 Employment Benefit Plans (Details) HTML 37K
41: R32 Related Party Transactions (Details) HTML 45K
42: R33 Accumulated Other Comprehensive Income AOCI by HTML 46K
Component (Details)
45: XML IDEA XML File -- Filing Summary XML 77K
43: XML XBRL Instance -- bni-20220930_htm XML 749K
44: EXCEL IDEA Workbook of Financial Reports XLSX 61K
6: EX-101.CAL XBRL Calculations -- bni-20220930_cal XML 104K
7: EX-101.DEF XBRL Definitions -- bni-20220930_def XML 232K
8: EX-101.LAB XBRL Labels -- bni-20220930_lab XML 744K
9: EX-101.PRE XBRL Presentations -- bni-20220930_pre XML 400K
5: EX-101.SCH XBRL Schema -- bni-20220930 XSD 83K
46: JSON XBRL Instance as JSON Data -- MetaLinks 230± 318K
47: ZIP XBRL Zipped Folder -- 0000934612-22-000017-xbrl Zip 191K
(Exact name of registrant as specified in its charter)
iDelaware
i27-1754839
(State
or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
i2650 Lou Menk Drive
iFort
Worth, iTexas
(Address of principal executive offices)
i76131-2830
(Zip Code)
(i800)
i795-2673
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
None
None
None
Securities
registered pursuant to Section 12(g) of the Act: Limited Liability Company Membership Interest
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
iYes
☒
No
☐
Indicate by check mark whether the
registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
iYes
☒
No
☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,”“accelerated filer,”“smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
iNon-accelerated
filer
☒
Smaller reporting company
i☐
Emerging growth company
☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
i☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes
i☐
No
☒
Registrant
meets the conditions set forth in General Instruction H (1) (a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format permitted by General Instruction H (2).
BURLINGTON NORTHERN SANTA FE, LLC and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
1.iAccounting
Policies and Interim Results
The Consolidated Financial Statements should be read in conjunction with Burlington Northern Santa Fe, LLC’s Annual Report on Form 10-K for the year ended December 31, 2021, including the financial statements and notes thereto. Burlington Northern Santa Fe, LLC (BNSF) is a holding company that conducts no operating activities and owns no significant assets other than through its interests in its subsidiaries. The Consolidated Financial Statements include the accounts of BNSF and its majority-owned subsidiaries, all of which are separate legal entities (collectively, the
Company). BNSF’s principal operating subsidiary is BNSF Railway Company (BNSF Railway). All intercompany accounts and transactions have been eliminated.
On February 12, 2010, Berkshire Hathaway Inc., a Delaware corporation (Berkshire), acquired i100 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 of a Berkshire wholly-owned merger subsidiary and Burlington Northern Santa Fe Corporation with the surviving entity renamed Burlington Northern Santa Fe, LLC. Earnings per share data is not presented because BNSF has only ione holder of its membership interests.
The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the entire year. In the opinion
of management, the unaudited financial statements reflect all adjustments (consisting of only normal recurring adjustments, except as disclosed) necessary for the fair statement of BNSF’s consolidated financial position as of September 30, 2022, and the results of operations for the three and nine months ended September 30, 2022 and 2021 in accordance with generally accepted accounting principles in the United States.
The Company disaggregates revenue from contracts with customers based on the characteristics of the services provided and the types of products transported (in millions):
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 September 30, 2022 and December 31, 2021, $i1.3 billion and $i1.1
billion, respectively, represented 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 September 30, 2022 and December 31, 2021, remaining performance obligations were $i301
million and $i274 million, respectively.
3.iAccounts
Receivable, Net
Accounts receivable, net consists of freight and other receivables, reduced by an allowance for credit losses which is based upon expected collectability. As of September 30, 2022 and December 31, 2021, $i33 million and $i40
million, respectively, of such allowances had been recorded.
BURLINGTON NORTHERN SANTA FE, LLC and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - (Continued)
4.iDebt
Notes
and Debentures
In May 2022, BNSF filed a new automatic shelf registration statement with the Securities and Exchange Commission (SEC) that became effective on May 6, 2022 and will remain effective for three years.
In June 2022, BNSF issued $i1.0 billion of i4.45
percent debentures due January 15, 2053. The net proceeds from the sale of the debentures will be used for general corporate purposes, which may include but are not limited to working capital, capital expenditures, repayment of outstanding indebtedness, and distributions.
As of September 30, 2022, $i1.55 billion remained authorized by the Board of Directors to be issued through the Securities and Exchange Commission
debt shelf offering process.
The Company is required to maintain certain financial covenants in conjunction with $i500 million of certain issued and outstanding junior subordinated notes. As of September 30, 2022, the Company was in compliance
with these financial covenants.
Fair Value of Debt Instruments
As of September 30, 2022 and December 31, 2021, the fair value of BNSF’s debt, excluding finance leases, was $i21.0 billion and $i27.7
billion, respectively, while the book value, which also excludes finance leases, was $i23.2 billion and $i23.1 billion, respectively. The fair value of BNSF’s debt is primarily based on market value price models using observable market-based
data for the same or similar issues, or on the estimated rates that would be offered to BNSF for debt of the same remaining maturities (Level 2 inputs).
5.iCommitments 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 the 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
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 these claims may be different from the recorded amounts. The Company estimates that costs to resolve the liability may range from approximately $i220
million to $i330 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 i185 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.
i
The following table summarizes the activity in the Company’s accrued obligations for environmental costs (in millions):
BURLINGTON NORTHERN SANTA FE, LLC and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - (Continued)
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 $i215
million to $i315 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.
On April 4, 2019, a class action complaint was filed against BNSF Railway alleging that BNSF obtained biometric identifiers from third-party truck drivers using the auto-gate system at BNSF’s facilities within the State of Illinois without obtaining their informed written consent in violation of the Illinois Biometric Information Privacy Act (BIPA). On October 12, 2022, a judgement was entered
against BNSF in the amount of $i228 million. Decisions by the Illinois Supreme Court are pending in other cases that are expected to provide binding guidance on the interpretation of BIPA that may significantly impact issues relevant to BNSF’s case. BNSF is evaluating options and expects to appeal the judgement entered against the Company. While the ultimate resolution of this matter is subject to further developments, the
Company does not believe that the outcome will have a material adverse effect on its financial position, results of operations or 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 treasuries. As of September 30, 2022 and December 31, 2021, there was $i572
million and $i561 million, respectively, related to these third-party investments, which were classified as cash and cash equivalents on the Company’s Consolidated Balance Sheets.
BURLINGTON NORTHERN SANTA FE, LLC and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - (Continued)
6.iEmployment Benefit Plans
BNSF
provides a funded, noncontributory qualified pension plan (BNSF Retirement Plan), which covered most non-union employees through March 31, 2019, and an unfunded non-tax-qualified pension plan (BNSF Supplemental Retirement Plan), which covered certain officers and other employees through March 31, 2019. The benefits under these pension plans are based on years of credited service and the highest consecutive isixty months of compensation for the last iten
years of salaried employment with the Company. In 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 plan participants are being transitioned away from the retirement plans and upon transition are eligible for the additional employer contribution.
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.
i
Components
of the net (benefit) cost for the Pension Plans were as follows (in millions):
Service
cost is included in compensation and benefits expense and the other components of net periodic benefit costs are included in other (income) expense, net in the Consolidated Statements of Income.
7.iRelated Party Transactions
The companies identified as affiliates
of BNSF include Berkshire and its subsidiaries. For the nine-month periods ended September 30, 2022 and 2021, the Company declared and paid cash distributions of $i3.6 billion and $i3.8
billion to Berkshire, respectively. During the nine-month period ended September 30, 2022, the Company made tax payments of $i1.2 billion and received less than $i1 million
of tax refunds from Berkshire. During the nine-month period ended September 30, 2021, the Company made tax payments of $i927 million and received ino
tax refunds from Berkshire. As of September 30, 2022 and December 31, 2021, the Company had a tax receivable from Berkshire of $i2 million and a tax payable to Berkshire of $i124
million, respectively.
North American railroads pay TTX Company (TTX) car hire to use TTX’s freight equipment to serve their customers. BNSF owns i17.3 percent of TTX while other North American railroads own the remaining interest. As the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of TTX, BNSF
applies the equity method of accounting to its investment. The investment in TTX is recorded in other assets in the Consolidated Balance Sheets, and equity income or losses are recorded in materials and other in the Consolidated Statements of Income. The Company’s investment in TTX was $i793 million and $i749
million as of September 30, 2022 and December 31, 2021, respectively. The Company incurred car hire expenditures with TTX of $i311 million and $i295
million for the nine-month periods ended September 30, 2022 and 2021, respectively.
BURLINGTON NORTHERN SANTA FE, LLC and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - (Continued)
8.iAccumulated
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.
i
The
following table provides the components of accumulated other comprehensive income (loss) (AOCI) by component (in millions):
Pension and Retiree Health and Welfare Benefit Items
aThis accumulated other comprehensive income component is included in the computation of net periodic pension and retiree health and welfare costs (see Note 6 for additional details on pension costs).
Item 2.Management’s
Narrative Analysis of Results of Operations
Management’s narrative analysis relates to the results of operations of Burlington Northern Santa Fe, LLC and its majority-owned subsidiaries (collectively, BNSF, Registrant, or Company). The principal operating subsidiary of BNSF is BNSF Railway Company (BNSF Railway) through which BNSF derives substantially all of its revenues. The following narrative analysis should be read in conjunction with the Consolidated Financial Statements and the accompanying notes.
The following narrative analysis of results of operations includes a brief discussion of the factors that materially affected the Company’s operating
results in the nine months ended September 30, 2022, and a comparative analysis to the nine months ended September 30, 2021.
Results of Operations
Revenues Summary
The following tables present BNSF’s revenue information by business group:
Freight revenues include both revenue for transportation services and fuel surcharges. Where BNSF’s fuel surcharge program is applied, it is intended to recover BNSF’s incremental fuel costs when fuel prices exceed a threshold fuel price. Fuel surcharges are calculated differently depending on the type of commodity transported. BNSF has two standard fuel surcharge programs – Percent of Revenue and Mileage-Based. In addition, in certain commodities, fuel surcharge is calculated using a fuel price from a time period that can be up to 60 days earlier. In a period of volatile fuel prices or changing customer business mix, changes in fuel expense and fuel surcharge may differ significantly.
The following table presents fuel surcharge and fuel expense information (in millions):
Revenues for the nine months ended September 30, 2022 were $19.3 billion, an increase of $2.3 billion, or 14 percent,
as compared with the nine months ended September 30, 2021. This was primarily due to a 20 percent increase in average revenue per car / unit resulting from higher fuel surcharge revenue driven by higher fuel prices along with increased rates per car, partially offset by a 5 percent decrease in unit volume. Revenue amounts also included the following changes between periods:
▪Consumer Products volumes decreased due to lower international intermodal shipments resulting from supply chain challenges.
▪Agricultural Products volumes decreased primarily due to lower grain exports, partially offset by higher volumes of domestic grains, renewable diesel, and oil feedstocks.
▪Industrial
Products volumes decreased primarily due to a decrease in petroleum related to lower demand for shipments of crude by rail and lower building products shipments due to lower wind volumes.
▪Coal volumes increased primarily due to increased electricity generation, higher natural gas prices, and improved export demand.
Expenses
Operating expenses for the nine months ended September 30, 2022 were $12.8 billion, an increase of $2.1 billion, or 20 percent, as compared with the nine months ended September 30, 2021. A significant portion of the increase is due to the following changes in expenses:
▪Fuel
expense increased primarily due to higher average fuel prices, partially offset by lower volumes.
▪Compensation and benefits expense increased primarily due to wage inflation, including the impact from tentative or ratified union labor agreements, higher health and welfare costs, and lower productivity.
▪Materials and other expense increased primarily due to general inflation, lower gains from land and easement sales, and higher casualty costs.
▪There were no significant changes in purchased services, depreciation and amortization, or equipment rents expense.
The
effective tax rate was 23.4 percent and 24.0 percent for the nine months ended September 30, 2022 and 2021, respectively.
Approximately 30,500 of BNSF’s employees are members of a labor union. The U.S. Class I railroads and rail labor unions were engaged in negotiations from January 2020 through June 2022. Federal mediation was included in that timeframe, followed by a release from the National Mediation Board for a Presidential Emergency Board (PEB). In accordance with the Railway Labor Act (RLA), the PEB issued its report and recommendations to settle the bargaining disputes on August 16, 2022. Tentative agreements based on these recommendations were reached with all labor unions in September 2022. To date, six unions have ratified those agreements.
Two labor unions did not ratify their tentative agreement, and the parties have agreed to maintain the status quo as discussions continue. Ratification results for the remaining unions are scheduled to be announced through November 2022. Where settlements have not been successful following the RLA process, Congress may act by extending the status quo period or passing a law imposing a resolution on the parties.
To
the extent that statements made by the Company relate to the Company’s future economic performance or business outlook, projections or expectations of financial or operational results, or refer to matters that are not historical facts, such statements are “forward-looking” statements within the meaning of the federal securities laws.
Forward-looking statements involve a number of risks and uncertainties, and actual performance or results may differ materially. For a discussion of material risks and uncertainties that the Company faces, see the discussion in "Part I, Item 1A. Risk Factors" of the
Company's Annual Report on Form 10-K for the year ended December 31, 2021. Important factors that could cause actual results to differ materially include, but are not limited to, the following:
• Economic and industry conditions: material adverse changes in economic or industry conditions, both in the United States and globally; volatility in the capital or credit markets including changes affecting the timely availability and cost of capital; changes in customer demand; effects of adverse economic conditions affecting shippers or BNSF’s supplier base; effects due to more stringent regulatory policies such as the regulation of greenhouse gas emissions that could reduce the demand for coal or governmental tariffs or subsidies that could affect the demand for products BNSF hauls; the impact of low
natural gas or oil prices on energy-related commodities demand; changes in environmental laws and other laws and regulations that could affect the demand for drilling products and products produced by drilling; changes in prices of fuel and other key materials, the impact of high barriers to entry for prospective new suppliers, and disruptions in supply chains for these materials; competition and consolidation within the transportation industry; and changes in crew availability, labor and benefits costs and labor difficulties, including stoppages affecting either BNSF’s operations or customers’ abilities to deliver goods to BNSF for shipment.
• Legal, legislative and regulatory factors: developments and changes in laws and regulations, including those affecting train operations, the marketing of services or regulatory restrictions
on equipment; the ultimate outcome of shipper and rate claims subject to adjudication; claims, investigations, or litigation alleging violations of the antitrust laws; increased economic regulation of the rail industry through legislative action and revised rules and standards applied by the U.S. Surface Transportation Board in various areas including rates and services; developments in environmental investigations or proceedings with respect to rail operations or current or past ownership or control of real property or properties owned by others impacted by BNSF operations; losses resulting from claims and litigation relating to personal injuries, asbestos, and other occupational diseases; the release of hazardous materials, environmental contamination, and damage to property; regulation, restrictions or caps, or other controls on transportation of energy-related commodities or other operating restrictions that could affect operations or increase costs; the availability
of adequate insurance to cover the risks associated with operations; and changes in tax rates and tax laws.
• Operatingfactors: changes in operating conditions and costs; operational and other difficulties in implementing positive train control technology, including increased compliance or operational costs or penalties; restrictions on development and expansion plans due to environmental concerns; disruptions to BNSF’s technology network including computer systems and software, such as cybersecurity intrusions, misappropriation of assets or sensitive information, corruption of data or operational disruptions; network congestion, including effects of greater than anticipated demand for transportation services and equipment; as well as pandemics or natural events such as severe weather,
fires, floods, and earthquakes or man-made or other disruptions of BNSF’s or other railroads’ operating systems, structures, or equipment including the effects of acts of war or terrorism on the Company’s system or other railroads’ systems or other links in the transportation chain.
The Company cautions against placing undue reliance on forward-looking statements, which reflect its current beliefs and are based on information currently available to it as of the date a forward-looking statement is made. The Company undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances,
or changes in beliefs. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statements.
Based
on their evaluation as of the end of the period covered by this quarterly report on Form 10-Q, the Company’s principal executive officer and principal financial officer have concluded that BNSF’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective to ensure that information required to be disclosed by BNSF in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms and that such information is accumulated and communicated to BNSF’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Additionally, as of the end of the period covered by this report, BNSF’s
principal executive officer and principal financial officer have concluded that there have been no changes in BNSF’s internal control over financial reporting that occurred during BNSF’s third fiscal quarter that have materially affected, or are reasonably likely to materially affect, BNSF’s internal control over financial reporting.
The following unaudited information from Burlington Northern Santa Fe, LLC’s Form 10-Q for the three and nine months ended September 30, 2022 formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) the Cover Page, (ii) the Consolidated Statements of Income for the three and nine months ended
September 30, 2022 and 2021, (iii) the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and 2021, (iv) the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021, (v) the Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021, (vi) the Consolidated Statements of Changes in Equity for the periods ended September 30, 2022 and 2021, and (vii) the Notes to the Consolidated
Financial Statements.*
104
Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101)
Certain instruments evidencing long-term indebtedness of BNSF are not being filed as exhibits to this report because the total amount of securities authorized under any single instrument does not exceed 10 percent of BNSF’s total assets. BNSF will furnish copies of any
material instruments upon request of the Securities and Exchange Commission.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
