Rendering

Component: (Network and Table)
Network
2320301 - Disclosure - Employment Benefit Plans (Tables)
(http://www.bnsf.com/role/EmploymentBenefitPlansTables)
TableSchedule of Defined Benefit Plans Disclosures [Table]
Slicers (applies to each fact value in each table cell)
Defined Benefit Plan Disclosure [Line Items]Period [Axis]
2016-01-01 - 2016-12-31
Schedule of Net Benefit Costs
Components of the net (benefit) cost for certain employee benefit plans were as follows (in millions):
 
 
Pension Benefits
 
 
Year Ended
 
Year Ended
 
Year Ended
 
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
Service cost
 
$
46

 
$
48

 
$
38

Interest cost
 
95

 
90

 
95

Expected return on plan assets
 
(142
)
 
(138
)
 
(134
)
Amortization of prior service credits
 
(1
)
 
(1
)
 
(1
)
Amortization of net loss
 
1

 
2

 
1

Settlements
 
(1
)
 
(1
)
 
(1
)
      Net (benefit) cost recognized
 
$
(2
)
 
$

 
$
(2
)

 
 
Retiree Health and
Welfare Benefits
 
 
Year Ended
 
Year Ended
 
Year Ended
 
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
Service cost
 
$
1

 
$
1

 
$
1

Interest cost
 
10

 
10

 
11

Amortization of prior service credits
 
(2
)
 
(2
)
 
(2
)
Amortization of net loss
 
1

 
2

 
1

      Net cost recognized
 
$
10

 
$
11

 
$
11

 
 
Schedule of Net Funded Status [Table Text Block]
The following table shows the change in projected benefit obligation (in millions):
 
 
Pension Benefits
Change in Benefit Obligation
 
December 31,
2016
 
December 31,
2015
Projected benefit obligation at beginning of period
 
$
2,320

 
$
2,452

Service cost
 
46

 
48

Interest cost
 
95

 
90

Actuarial gain
 
(55
)
 
(111
)
Benefits paid
 
(143
)
 
(145
)
Administrative expenses
 

 
(1
)
Settlements
 
(16
)
 
(13
)
   Projected benefit obligation at end of period
 
2,247

 
2,320

   Component representing future salary increases
 
(102
)
 
(146
)
      Accumulated benefit obligation at end of period
 
$
2,145

 
$
2,174


 
 
Retiree Health and Welfare Benefits
Change in Benefit Obligation
 
December 31,
2016
 
December 31,
2015
Projected benefit obligation at beginning of period
 
$
258

 
$
280

Service cost
 
1

 
1

Interest cost
 
10

 
10

Plan participants’ contributions
 
5

 
5

Actuarial gain
 
(13
)
 
(13
)
Benefits paid
 
(24
)
 
(25
)
      Projected benefit obligation at end of period
 
$
237

 
$
258


At December 31, 2016, BNSF’s pension plans had plan assets in excess of accumulated and projected benefit obligations. At December 31, 2015, BNSF's pension plans had plan assets in excess of accumulated benefit obligations and projected benefit obligations in excess of plan assets.  
 
The following tables show the change in plan assets of the plans (in millions):
 
 
Pension Benefits
Change in Plan Assets
 
December 31,
2016
 
December 31,
2015
Fair value of plan assets at beginning of period
 
$
2,289

 
$
2,342

Actual return on plan assets
 
193

 
95

Employer contributionsa
 
10

 
11

Benefits paid
 
(143
)
 
(145
)
Administrative expenses
 

 
(1
)
Settlements
 
(16
)
 
(13
)
      Fair value of plan assets at measurement date
 
$
2,333

 
$
2,289

 Employer contributions were classified as Other, Net under Operating Activities in the Company’s Consolidated Statements of Cash Flows.
 
 
Retiree Health and
Welfare Benefits
Change in Plan Assets
 
December 31,
2016
 
December 31,
2015
Fair value of plan assets at beginning of period
 
$

 
$

Employer contributionsa
 
19

 
20

Plan participants’ contributions
 
5

 
5

Benefits paid
 
(24
)
 
(25
)
      Fair value of plan assets at measurement date
 
$

 
$

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, defined as plan assets less the projected benefit obligation (in millions):
 
 
Pension Benefits
 
Retiree Health and
Welfare Benefits
 
 
December 31,
2016
 
December 31,
2015
 
December 31,
2016
 
December 31,
2015
Funded status (plan assets less projected benefit obligations)
 
$
86

 
$
(31
)
 
$
(237
)
 
$
(258
)
 
 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]
The following table shows the pre-tax change in AOCI attributable to the components of the net cost and the change in benefit obligation (in millions):
 
 
Pension Benefits
 
 
Year Ended
 
Year Ended
 
Year Ended
Change in AOCI
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
Beginning balance
 
$
102

 
$
34

 
$
427

Amortization of net loss
 
1

 
2

 
1

Amortization of prior service credits
 
(1
)
 
(1
)
 
(1
)
Actuarial gain (loss)
 
106

 
68

 
(392
)
Settlements
 
(1
)
 
(1
)
 
(1
)
      Ending balance
 
$
207

 
$
102

 
$
34



 
 
Retiree Health and
Welfare Benefits
 
 
Year Ended
 
Year Ended
 
Year Ended
Change in AOCI
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
Beginning balance
 
$
(21
)
 
$
(34
)
 
$
(20
)
Amortization of net loss
 
1

 
2

 
1

Amortization of prior service credits
 
(2
)
 
(2
)
 
(2
)
Actuarial gain (loss)
 
13

 
13

 
(13
)
      Ending balance
 
$
(9
)
 
$
(21
)
 
$
(34
)


 
 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Pre-tax amounts currently recognized in AOCI consist of the following (in millions):
 
 
Pension Benefits
 
Retiree Health and
Welfare Benefits
 
 
2016
 
2015
 
2016
 
2015
Net gain (loss)
 
$
206

 
$
99

 
$
(14
)
 
$
(28
)
Prior service credits
 
4

 
5

 
5

 
7

Settlements
 
(3
)
 
(2
)
 

 

Pre-tax amount recognized in AOCI at
December 31,
 
$
207

 
$
102

 
$
(9
)
 
$
(21
)
After-tax amount recognized in AOCI at
December 31,
 
$
128

 
$
63

 
$
(6
)
 
$
(13
)
 
 
Schedule of Assumptions Used [Table Text Block]
The assumptions used in accounting for the BNSF plans were as follows:
 
 
Pension Benefits
 
 
Year Ended
 
Year Ended
 
Year Ended
Assumptions Used to Determine Net Cost
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
Discount rate
 
4.2
%
 
3.8
%
 
4.5
%
Expected long-term rate of return on plan assets
 
6.6
%
 
6.6
%
 
6.8
%
Rate of compensation increase
 
3.8
%
 
3.8
%
 
3.8
%

 
 
Retiree Health and Welfare Benefits
 
 
Year Ended
 
Year Ended
 
Year Ended
Assumptions Used to Determine Net Cost
 
December 31,
2016
 
December 31,
2015
 
December 31,
2014
Discount rate
 
4.1
%
 
3.7
%
 
4.5
%
Rate of compensation increase
 
3.8
%
 
3.8
%
 
3.8
%

 
 
Pension Benefits
 
Retiree Health and
Welfare Benefits
Assumptions Used to Determine Benefit Obligations
 
December 31,
2016
 
December 31,
2015
 
December 31,
2016
 
December 31,
2015
Discount rate
 
4.1
%
 
4.2
%
 
3.9
%
 
4.1
%
Rate of compensation increase
 
3.3
%
 
3.8
%
 
3.3
%
 
3.8
%
 
 
Sensitivity analysis of impact on future net benefit cost resulting from hypothetical change in assumptions [Table Text Block]
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 rate of return on plan assets:
Sensitivity Analysis
 
 
 
Change in Net Benefit Cost
Hypothetical Discount Rate Change 
 
 
Pension
 
 
Retiree Health and Welfare
50 basis point decrease
 
 
$
1
 million
increase
 
 
$

decrease
50 basis point increase
 
 
$
7
 million
decrease
 
 
$

increase
Hypothetical Rate of Return
on Plan Assets Change
 
 
Pension
 
 
 
 
50 basis point decrease
 
 
$
11
 million
increase
 
 
 
 
50 basis point increase
 
 
$
11
 million
decrease
 
 
 
 
 
 
Schedule of Health Care Cost Trend Rates [Table Text Block]
The following table presents assumed health care cost trend rates:
 
 
Year Ended
 
Year Ended
 
Year Ended
 
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
Assumed health care cost trend rate for next year (participants over 65)
 
3.0
%
 
3.0
%
 
3.0
%
Assumed health care cost trend rate for next year (participants under 65)
 
7.4
%
 
7.7
%
 
7.9
%
Rate to which health care cost trend rate for participants under 65 is expected to decline and remain
 
4.4
%
 
4.5
%
 
4.5
%
Year that the rate reaches the ultimate trend rate
 
2039

 
2038

 
2028



 
 
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]
A one percentage point change in assumed health care cost trend rates would have the following effects (in millions):
 
 
One Percentage-Point Increase

 
One Percentage-Point Decrease

Effect on total service and interest cost
 
$
1

 
$
(1
)
Effect on postretirement benefit obligation
 
$
17

 
$
(15
)
 
 
Schedule of Allocation of Plan Assets [Table Text Block]
The following table summarizes the investments of BNSF’s funded pension plans as of December 31, 2016, based on the inputs used to value them (in millions):
 
 
Total as of
 
 
 
 
 
 
Asset Category
 
December 31,
2016
 
Level 1
Inputs
a
 
Level 2
Inputs
a
 
Level 3
Inputs
a
Cash and equivalents
 
$
1

 
$
1

 
$

 
$

Equity securitiesb
 
2,139

 
2,139

 

 

Government obligations
 
164

 

 
164

 

Other fixed maturity securities
 
21

 

 
21

 

Investment funds and other
 
8

 
8

 

 

Totalc
 
$
2,333

 
$
2,148

 
$
185

 
$

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, 2016, four equity securities each exceeded 10 percent of total plan assets. These investments represent approximately 56 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 BNSF’s funded pension plans as of December 31, 2015, based on the inputs used to value them (in millions):
 
 
Total as of
 
 
 
 
 
 
Asset Category
 
December 31,
2015
 
Level 1
Inputs a
 
Level 2
Inputs a
 
Level 3
Inputs a
Cash and equivalents
 
$
167

 
$
3

 
$
164

 
$

Equity securitiesb
 
2,060

 
2,060

 

 

Government obligations
 
12

 

 
12

 

Other fixed maturity securities
 
31

 

 
31

 

Investment funds and other
 
19

 
19

 

 

Total c
 
$
2,289

 
$
2,082

 
$
207

 
$

 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, 2015, three equity securities each exceeded 10 percent of total plan assets. These investments represented approximately 47 percent of total plan assets.
c  Excludes less than $1 million accrued for dividend and interest receivable.
 
 
 
Schedule of Expected Benefit Payments Years 2015 - 2024 [Table Text Block]
The following table shows expected benefit payments from its defined benefit pension plans and expected claim payments for the retiree health and welfare plan for the next five fiscal years and the aggregate five years thereafter (in millions):
Fiscal year
 
Expected
Pension
Plan Benefit
Payments

a 
 
Expected
 Retiree Health
 and Welfare
Payments

2017
 
$
166

 
 
$
19

2018
 
$
153

 
 
$
18

2019
 
$
152

 
 
$
18

2020
 
$
151

 
 
$
17

2021
 
$
145

 
 
$
16

2022-2026
 
$
661

 
 
$
73

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.