----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Delaware                                                      |   | 41-6034000                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdictionof incorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| 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.                               |  Yes  [x]  No  [  ]            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                        |                                                                        |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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). |  Yes  [  ]  No  [  ] |
|                                                                                                                                                                                                                                                                                                                                                                                        |                                                                        |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.                                                     |                                                                        |
|    Large accelerated filer  [  ]  Accelerated filer  [  ]   Non-accelerated filer  [x ] Smaller reporting company  [  ]                                                                                                                                                            |                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                        |                                                                        |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                                                                                                                                                                                                                                            |  Yes  [  ]  No  [x]            |
|                                                                                                                                                                                                                                                                                                                                                                                        |                                                                        |
| Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.                                                                                                                                                                                                                                                         |                                                                        |

| Class                         |    | SharesOutstanding atAugust 6, 2010 |
|-------------------------------|--------------|------------------------------------|
| Common stock, $1.00 par value |    | 1,000 shares                  |

----

Table of Contents

|       |                                                            |   |
|------------|-----------------------------------------------------------------|--------|
| PART I     | FINANCIAL INFORMATION                                           | PAGE   |
|       |                                                            |   |
| Item 1.    | Financial Statements.                                           | 3      |
|       |                                                            |   |
| Item 2.    | Management’s Narrative Analysis of Results of Operations. | 27     |
|       |                                                            |   |
| Item 4T.   | Controls and Procedures.                                        | 31     |
|       |                                                            |   |
| PART II    | OTHER INFORMATION                                               |   |
|       |                                                            |   |
| Item 6.    | Exhibits.                                                       | 32     |
|       |                                                            |   |
| Signatures |                                                            | S-1    |
|       |                                                            |   |
| Exhibits   |                                                            | E-1    |

----

Table of Contents

Item 1.    Financial Statements.

|                             |   | Successor                       |   | Predecessor                     |   | Successor                        |   | Predecessor                        |
|----------------------------------|--------|---------------------------------|--------|---------------------------------|--------|----------------------------------|--------|------------------------------------|
|                             |   | Three MonthsEnded June 30, 2010 |   | Three MonthsEnded June 30, 2009 |   | February 13 –June 30, 2010 |   | January 1 – February 12,2010 |   | Six MonthsEnded June 30, 2009 |
| Revenues                         | $      | 4,031                           | $      | 3,275                           | $      | 6,076                            | $      | 1,768                              | $ | 6,658 |
|                             |   |                            |   |                            |   |                             |   |                               |   |   |
| Operating expenses:              |   |                            |   |                            |   |                             |   |                               |   |   |
| Compensation and benefits        |   | 969                             |   | 818                             |   | 1,496                            |   | 439                                |   | 1,680 |
| Fuel                             |   | 762                             |   | 509                             |   | 1,092                            |   | 329                                |   | 1,123 |
| Purchased services               |   | 484                             |   | 462                             |   | 722                              |   | 211                                |   | 938 |
| Depreciation and amortization    |   | 433                             |   | 378                             |   | 660                              |   | 192                                |   | 748 |
| Equipment rents                  |   | 187                             |   | 196                             |   | 289                              |   | 97                                 |   | 397 |
| Materials and other              |   | 124                             |   | 120                             |   | 214                              |   | 1                                  |   | 319 |
| Total operating expenses         |   | 2,959                           |   | 2,483                           |   | 4,473                            |   | 1,269                              |   | 5,205 |
| Operating income                 |   | 1,072                           |   | 792                             |   | 1,603                            |   | 499                                |   | 1,453 |
| Interest expense                 |   | 16                              |   | 35                              |   | 31                               |   | 16                                 |   | 77 |
| Interest income, related parties |   | (4)                             |   | –                         |   | (5)                              |   | (1)                                |   | – |
| Other expense, net               |   | 2                               |   | –                         |   | 2                                |   |  2                            |   | 3 |
|                             |   |                            |   |                            |   |                             |   |                               |   |   |
| Income before income taxes       |   | 1,058                           |   | 757                             |   | 1,575                            |   | 482                                |   | 1,373 |
| Income tax expense               |   | 402                             |   | 293                             |   | 578                              |   | 200                                |   | 525 |
| Net income                       | $      | 656                             | $      | 464                             | $      | 997                              | $      | 282                                | $ | 848 |

----

Table of Contents

|                                                                                           |   | Successor |                     | Predecessor       |
|------------------------------------------------------------------------------------------------|--------|-----------|--------------------------|-------------------|
|                                                                                           |   | June 30,  |      | December 31, |
|                                                                                           |   | 2010      |                     | 2009              |
|                                                                                           |   |      |                     |              |
| ASSETS                                                                                         |   |      |                     |              |
| Current assets:                                                                                |   |      |                     |              |
| Cash and cash equivalents                                                                      | $      | 26        | $                        | 20                |
| Accounts receivable, net                                                                       |   | 1,000     |                     | 810               |
| Materials and supplies                                                                         |   | 602       |                     | 632               |
| Current portion of deferred income taxes                                                       |   | 256       |                     | 282               |
| Other current assets                                                                           |   | 295       |                     | 375               |
| Total current assets                                                                           |   | 2,179     |                     | 2,119             |
|                                                                                           |   |      |                     |              |
| Property and equipment, net of accumulated depreciation of $446 and $10,731, respectively      |   | 44,724    |                     | 32,278            |
| Goodwill                                                                                       |   | 14,803    |                     | −           |
| Intangible assets, net                                                                         |   | 1,885     |                     | −           |
| Other assets                                                                                   |   | 2,205     |                     | 3,193             |
| Total assets                                                                                   | $      | 65,796    | $                        | 37,590            |
|                                                                                           |   |      |                     |              |
| LIABILITIES AND STOCKHOLDER’S EQUITY                                                     |   |      |                     |              |
| Current liabilities:                                                                           |   |      |                     |              |
| Accounts payable and other current liabilities                                                 | $      | 2,747     | $                        | 2,548             |
| Long-term debt due within one year                                                             |   | 337       |                     | 335               |
| Total current liabilities                                                                      |   | 3,084     |                     | 2,883             |
|                                                                                           |   |      |                     |              |
| Deferred income taxes                                                                          |   | 13,912    |                     | 9,360             |
| Long-term debt                                                                                 |   | 2,206     |                     | 2,118             |
| Intangible liabilities, net                                                                    |   | 1,941     |                     | −           |
| Casualty and environmental liabilities                                                         |   | 864       |                     | 899               |
| Pension and retiree health and welfare liability                                               |   | 469       |                     | 783               |
| Other liabilities                                                                              |   | 552       |                     | 1,799             |
| Total liabilities                                                                              |   | 23,028    |                     | 17,842            |
| Commitments and contingencies (see Notes 3, 6 and 7)                                           |   |      |                     |              |
| Stockholder’s equity:                                                                    |   |      |                     |              |
| Common stock, $1 par value, 1,000 shares authorized;issued and outstanding and paid-in capital |   | 42,920    |                     | 6,331             |
| Retained earnings                                                                              |   | 997       |                     | 14,866            |
| Intercompany notes receivable                                                                  |   | (1,146)   |                     | (948)             |
| Accumulated other comprehensive loss                                                           |   | (3)       |                     | (501)             |
| Total stockholder’s equity                                                               |   | 42,768    |                     | 19,748            |
| Total liabilities and stockholder’s equity                                               | $      | 65,796    | $                        | 37,590            |

----

Table of Contents

|                                                                              |    |  Successor                         |          |  Predecessor                         |
|-----------------------------------------------------------------------------------|---------|-----------------------------------------|---------------|-------------------------------------------|
|                                                                              |    |   February 13 –June 30, 2010 |          |   January 1 –February 12, 2010 |   | Six MonthsEnded June30, 2009 |
|                                                                              |    |                                    |          |                                      |   |   |
|  OPERATING ACTIVITIES                                                        |    |                                    |          |                                      |   |   |
|     Net Income                                                |  $ | 997                                     |   $ | 282                                       |   $ | 848 |
| Adjustments to reconcile net income to net cash provided by operating activities: |    |                                    |          |                                      |   |   |
| Depreciation and amortization                                                     |    | 660                                     |          | 192                                       |   | 748 |
| Deferred income taxes                                                             |    | 103                                     |          | 134                                       |   | 316 |
| Long-term casualty and environmental liabilities, net                             |    | (59)                                    |          | (2)                                       |   | (30) |
| Contribution to defined benefit pension plan                                      |    | (400)                                   |          | −                                   |   | − |
| Other, net                                                                        |    | (58)                                    |          | (73)                                      |   | (35) |
| Changes in current assets and liabilities:                                        |    |                                    |          |                                      |   |   |
| Accounts receivable, net                                                          |    | (414)                                   |          | 217                                       |   | 91 |
| Change in accounts receivable sales program                                       |    | −                                 |          | −                                   |   | (50) |
| Materials and supplies                                                            |    | 27                                      |          | 4                                         |   | (9) |
| Other current assets                                                              |    | (12)                                    |          | (129)                                     |   | (164) |
| Accounts payable and other current liabilities                                    |    | 798                                     |          | (574)                                     |   | (233) |
| Net cash provided by operating activities                                         |    | 1,642                                   |          | 51                                        |   | 1,482 |
| INVESTING ACTIVITIES                                                              |    |                                    |          |                                      |   |   |
| Capital expenditures excluding equipment                                          |    | (741)                                   |          | (137)                                     |   | (1,079) |
| Acquisition of equipment                                                          |    | (249)                                   |          | (67)                                      |   | (456) |
| Proceeds from sale of equipment financed                                          |    | −                                 |          | −                                   |   | 368 |
| Construction costs for facility financing obligation                              |    | −                                 |          | −                                   |   | (31) |
| Other, net                                                                        |    | (232)                                   |          | 66                                        |   | (94) |
| Net cash used for investing activities                                            |    | (1,222)                                 |          | (138)                                     |   | (1,292) |
| FINANCING ACTIVITIES                                                              |    |                                    |          |                                      |   |   |
| Payments on long-term debt                                                        |    | (100)                                   |          | (29)                                      |   | (122) |
| Proceeds from facility financing obligation                                       |    | −                                 |          | −                                   |   | 51 |
| Net (increase) decrease in intercompany notes receivable classified as equity     |    | (308)                                   |          | 110                                       |   | (316) |
| Other, net                                                                        |    | −                                 |          | −                                   |   | (3) |
| Net cash (used for) provided by financing activities                              |    | (408)                                   |          | 81                                        |   | (390) |
| Increase (decrease) in cash and cash equivalents                                  |    | 12                                      |          | (6)                                       |   | (200) |
| Cash and cash equivalents:                                                        |    |                                    |          |                                      |   |   |
| Beginning of period                                                               |    | 14                                      |          | 20                                        |   | 209 |
| End of period                                                                     | $       | 26                                      | $             | 14                                        | $ | 9 |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                |    |                                    |          |                                      |   |   |
| Interest paid, net of amounts capitalized                                         | $       | 50                                      | $             | 10                                        | $ | 52 |
| Income taxes paid, net of refunds                                                 | $       | 362                                     | $             | −                                   | $ | 356 |
| Non-cash asset financing                                                          | $       | 19                                      | $             | 8                                         | $ | 433 |

----

Table of Contents

|  Predecessor                                                                          |   | Common Stockand Paid-in Capital |    | RetainedEarnings |    |    | Inter-CompanyNotesReceivable |    | AccumulatedOther Comprehensive Loss |   | TotalStockholder’s Equity |
|--------------------------------------------------------------------------------------------|--------|---------------------------------|---------|------------------|---------|---------|------------------------------|---------|-------------------------------------|--------|---------------------------------|
| Balance at December 31, 2009                                                               |   | $                               | 6,331   |             | $  | 14,866  |                         | $  | (948)                               |   | $                          | (501) |   | $ |   19,748  |
| Change in intercompany notes receivable                                                    |   |                            | – |             |    | – |                         |    | 110                                 |   |                            | – |   |   | 110 |
| Comprehensive income:                                                                      |   |                            |    |             |    |    |                         |    |                                |   |                            |   |   |   |   |
| Net income                                                                                 |   |                            | – |             |    | 282     |                         |    | –                             |   |                            | – |   |   | 282 |
| Change in unrecognized prior service credit and actuarial losses, net of tax expense of $1 |   |                            | – |             |    | – |                         |    | –                             |   |                            | 2 |   |   | 2 |
| Change in fuel/interest hedge mark-to-market, net of tax benefit of $28                    |   |                            | – |             |    | – |                         |    | –                             |   |                            | (45) |   |   | (45) |
| Change in other comprehensive income of equity method investees                            |   |                            | – |             |    | – |                         |    | –                             |   |                            | 2 |   |   | 2 |
|         Total comprehensive income                 |   |                            |    |             |    |    |                         |    |                                |   |                            |   |   |   | 241 |
| Balance at February 12, 2010                                                               |   | $                               | 6,331   |             | $  | 15,148  |                         | $       | (838)                               |   | $                          |    (542) |   | $ |     20,099 |
|                                                                                       |   |

|  Successor                                                            |   | Common Stockand Paid-in Capital |    | RetainedEarnings |    |    | Inter-CompanyNotesReceivable |    | AccumulatedOther Comprehensive Loss |   | TotalStockholder’s Equity |
|----------------------------------------------------------------------------|--------|---------------------------------|---------|------------------|---------|---------|------------------------------|---------|-------------------------------------|--------|---------------------------------|
| Balance at February 12, 2010                                               |   | $                               | – |             | $  | – |                         | $       | (838)                               |   | $                          | – |   | $ | (838) |
| Net contribution from Berkshire Hathaway Inc.                              |   |                            | 42,919  |             |    | – |                         |    | –                             |   |                            | – |   |   | 42,919 |
| Capital contribution from Burlington Northern Santa Fe, LLC                |   |                            | 1       |             |    | – |                         |    | –                             |   |                            | – |   |   | 1 |
| Change in intercompany notes receivable                                    |   |                            | – |             |    | – |                         |    | (308)                               |   |                            | – |   |   | (308) |
| Comprehensive income:                                                      |   |                            |    |             |    |    |                         |    |                                |   |                            |   |   |   |   |
| Net income                                                                 |   |                            | – |             |    | 997     |                         |    | –                             |   |                            | – |   |   | 997 |
| Change in fuel/interest hedge mark-to-market, net of tax benefit of $1     |   |                            | – |             |    | – |                         |    | –                             |   |                            | (3) |   |   | (3) |
|         Total comprehensive income |   |                            |    |             |    |    |                         |    |                                |   |                            |   |   |   | 994 |
| Balance at June 30, 2010                                                   |   | $                               | 42,920  |             | $  | 997     |                         | $  | (1,146)                             |   | $                          | (3) |   | $ |     42,768 |
|                                                                       |   |                            |    |             |    |    |                         |    |                                |   |                            |   |   |   |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Assets                                   |   |   |   |   | Liabilities and net assets acquired              |   |   |   |
|------------------------------------------|--------|--------|--------|--------|--------------------------------------------------|--------|--------|--------|
| Cash and cash equivalents                |   | $      | 14     |   | Accounts payable and other current liabilities   |   | $      | 2,197  |
| Accounts receivable, net                 |   |   | 829    |   | Long-term debt due within one year               |   |   | 342    |
| Materials and supplies                   |   |   | 629    |   | Long-term debt                                   |   |   | 2,326  |
| Current portion of deferred income taxes |   |   | 202    |   | Deferred income taxes                            |   |   | 13,696 |
| Other current assets                     |   |   | 272    |   | Intangible liabilities, net                      |   |   | 2,056  |
| Property and equipment, net              |   |   | 43,970 |   | Casualty and environmental liabilities           |   |   | 928    |
| Goodwill                                 |   |   | 14,803 |   | Pension and retiree health and welfare liability |   |   | 865    |
| Intangible assets, net                   |   |   | 2,018  |   | Other liabilities                                |   |   | 492    |
| Other assets                             |   |   | 2,246  |   | Intercompany notes receivable                    |   |   | (838)  |
|                                     |   |   |   |   | Net assets acquired                              |   |   | 42,919 |
| Total assets                             |   | $      | 64,983 |   | Total liabilities and net assets acquired        |   | $      | 64,983 |
|                                     |   |   |   |   |                                             |   |   |   |

|       |   | Six Months Ended June 30, |
|------------|--------|---------------------------|
|       |   | 2010                      |   | 2009 |
| Revenues   |   | $                         | 7,877 |   | $ | 6,796 |
| Net income |   | $                         | 1,314 |   | $ | 926 |

----

Table of Contents

|                            |   |   | Successor    |   |   | Predecessor      |   |
|---------------------------------|--------|--------|--------------|--------|--------|------------------|--------|
|                            |   |   | June 30,2010 |   |   | December 31,2009 |   |
| Short-term derivative asset     |   | $      | 8            |   | $      | 20               |   |
| Long-term derivative asset      |   |   | 10           |   |   | 40               |   |
| Short-term derivative liability |   |   | (38          | )      |   | (25              | )      |
| Long-term derivative liability  |   |   | (13          | )      |   | (12              | )      |
| Total derivatives               |   | $      | (33          | )      | $      | 23               |   |

----

Table of Contents

| Fair Value of Derivative Instruments                                       |
|----------------------------------------------------------------------------|
| Asset Derivatives                                                          |
|                                                                       |   |   |   |   |   |   |   |   |
|                                                                       |   | Successor |   | Predecessor |   |   |
|                                                                       |   | June 30, 2010 |   | December 31, 2009 |   | Balance SheetLocation |
|                                                                       |   |   |   |   |   |   |   |   |
| Asset derivatives designated as hedging instruments under ASC 815-20       |   |   |   |   |   |   |   |   |
| Fuel contracts                                                             |   | $ | 10  |   | $ | 20 |   | Other current assets |
| Fuel contracts                                                             |   |   | 11  |   |   | 40 |   | Other assets |
| Fuel contracts                                                             |   |   | 1  |   |   | 10 |   | Accounts payable and other current liabilities |
| Fuel contracts                                                             |   |   | −  |   |   | 3 |   | Other liabilities |
| Total asset derivatives designated as hedging instruments under ASC 815-20 |   | $ | 22  |   | $ | 73 |   |   |
|                                                                       |   |   |   |   |   |   |   |   |
| Total asset derivatives                                                    |   | $ | 22  |   | $ | 73 |   |   |

| Liability Derivatives                                                              |
|------------------------------------------------------------------------------------|
|                                                                               |   |   |   |   |   |   |   |   |
|                                                                               |   | Successor |   | Predecessor |   |   |
|                                                                               |   | June 30, 2010 |   | December 31, 2009 |   | Balance SheetLocation |
|                                                                               |   |   |   |   |   |   |   |   |
| Liability derivatives designated as hedging instruments under ASC 815-20           |   |   |   |   |   |   |   |   |
| Fuel contracts                                                                     |   | $ | 2  |   | $ | − |   | Other current assets |
| Fuel contracts                                                                     |   |   | 1  |   |   | − |   | Other assets |
| Fuel contracts                                                                     |   |   | 38  |   |   | 35 |   | Accounts payable and other current liabilities |
| Fuel contracts                                                                     |   |   | 12  |   |   | 15 |   | Other liabilities |
| Total liability derivatives designated as hedging instruments under ASC 815-20     |   | $ | 53  |   | $ | 50 |   |   |
|                                                                               |   |   |   |   |   |   |   |   |
| Liability derivatives not designated as hedging instruments under ASC 815-20       |   |   |   |   |   |   |   |   |
| Fuel contracts                                                                     |   | $ | 1  |   | $ | − |   | Accounts payable and other current liabilities |
| Fuel contracts                                                                     |   |   | 1  |   |   | − |   | Other liabilities |
| Total liability derivatives not designated as hedging instruments under ASC 815-20 |   | $ | 2  |   | $ | − |   |   |
|                                                                               |   |   |   |   |   |   |   |   |
| Total liability derivatives                                                        |   | $ | 55  |   | $ | 50 |   |   |

----

Table of Contents

| The Effects of Derivative Instruments Gains and Lossesfor the Three Month Periods Ended June 30, 2010 and 2009 |
|----------------------------------------------------------------------------------------------------------------|

|              |   | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) |
|-------------------|--------|-------------------------------------------------------------------------------|
|              |   | Successor                                                                     |   | Predecessor |
|              |   | 2010                                                                          |   | 2009 |
| Fuel Contracts    | $      | (58)                                                                | $ | 204   |
| Total derivatives | $      | (58)                                                                | $ | 204   |

|              |   |                                 |   | Amount of Gain or (Loss) Recognized from AOCI into Income(Effective Portion) |
|-------------------|--------|--------------------------------------|--------|------------------------------------------------------------------------------|
|              |   | Location of Gainor (Loss) Recognized |   | Successor                                                                    |   | Predecessor |
|              |   | from AOCI into Income                |   | 2010                                                                         |   | 2009 |
| Fuel Contracts    |   | Fuel expense                         | $      | 7                                                                       | $ | (60)   |
| Total derivatives |   |                                 | $      | 7                                                                       | $ | (60)   |

|              |   |                                  |   | Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)a |
|-------------------|--------|---------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|
|              |   | Location of Gain or (Loss) Recognized |   | Successor                                                                                                                          |   | Predecessor |
|              |   | in Income on Derivatives              |   | 2010                                                                                                                               |   | 2009 |
| Fuel Contracts    |   | Fuel expense                          | $      | (7)                                                                                                                      | $ | 15   |
| Total derivatives |   |                                  | $      | (7)                                                                                                                      | $ | 15   |

|              |   |                                  |             | Amount of Gain or (Loss) Recognized in Income on Derivatives |
|-------------------|--------|---------------------------------------|------------------|--------------------------------------------------------------|
|              |   | Location of Gain or (Loss) Recognized |             | Successor                                                    |   | Predecessor |
|              |   | in Income on Derivatives              |             | 2010                                                         |   | 2009 |
| Fuel Contracts    |   | Fuel expense                          | $                | (12)                                               | $ | −  |
| Total derivatives |   | $                                     | (12)   | $                                                            | −  |

----

Table of Contents

| The Effects of Derivative Instruments Gains and Losses for the PeriodsFebruary 13 – June 30, 2010 (Successor), January 1 – February 12, 2010 (Predecessor)and the Six Months Ended June 30, 2009 (Predecessor) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|              |   | Amount of Gain or (Loss) Recognized in OCIon Derivatives (Effective Portion) |
|-------------------|--------|------------------------------------------------------------------------------|
|              |   | Successor                                                                    |   | Predecessor |
|              |   | February 13 – June 30, 2010                                       |   | January 1 –February 12, 2010 |   | Six Months EndedJune 30, 2009 |
| Fuel Contracts    | $      | 10                                                                      | $ | (79)   | $ | 172  |
| Total derivatives | $      | 10                                                                      | $ | (79)   | $ | 172  |

|              |                                    |   | Amount of Gain or (Loss) Recognized fromAOCI into Income(Effective Portion) |
|-------------------|-----------------------------------------|--------|-----------------------------------------------------------------------------|
|              | Location of Gain or                     |   | Successor                                                                   |   | Predecessor |
|              | (Loss) Recognized from AOCI into Income |   | February 13 – June 30, 2010                                      |   | January 1 – February 12, 2010 |   | Six Months EndedJune 30, 2009 |
| Fuel Contracts    | Fuel expense                            | $      | 14                                                                     | $ | (6)   | $ | (166)   |
| Total derivatives |                                    | $      | 14                                                                     | $ | (6)   | $ | (166)   |

|              |                                       |   | Amount of Gain or (Loss) Recognized inIncome on Derivatives (Ineffective Portion andAmount Excluded from Effectiveness Testing)a |
|-------------------|--------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|
|              | Location of Gain or                        |   | Successor                                                                                                                        |   | Predecessor |
|              | (Loss) Recognized in Income on Derivatives |   | February 13 – June 30, 2010                                                                                           |   | January 1 – February 12, 2010 |   | Six Months EndedJune 30, 2009 |
| Fuel Contracts    | Fuel expense                               | $      | 1                                                                                                                           | $ | (7)   | $ | 16  |
| Total derivatives |                                       | $      | 1                                                                                                                           | $ | (7)   | $ | 16  |

|              |                                             |   | Amount of Gain or (Loss) Recognized inIncome on Derivatives |
|-------------------|--------------------------------------------------|--------|-------------------------------------------------------------|
|              | Location of Gain or                              |   | Successor                                                   |   | Predecessor |
|              |  (Loss) Recognized in Income on Derivatives |   | February 13 – June 30, 2010                      |   | January 1 – February 12, 2010 |   | Six Months EndedJune 30, 2009 |
| Fuel Contracts    | Fuel expense                                     | $      | 1                                                      | $ | −  | $ | −  |
| Total derivatives |                                             | $      | 1                                                      | $ | −  | $ | −  |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|              |   | Successor                        |    | Predecessor                         |
|-------------------|--------|----------------------------------|---------|-------------------------------------|
|              |   | February 13 –June 30, 2010 |    | January 1 – February 12, 2010 |   | Six Months EndedJune 30, 2009 |
| Beginning balance |   | $                                | − |                                | $ | − |   | $ | − |
| Additions         |   |                             | 14,803  |                                |   | − |   |   | − |
| Ending balance    |   | $                                | 14,803  |                                | $ | − |   | $ | − |

|                             |   | Successor            |   | Predecessor              |
|----------------------------------|--------|----------------------|--------|--------------------------|
|                             |   | As of June 30, 2010  |   | As of December 31, 2009  |
|                             |   | Gross CarryingAmount |   | Accumulated Amortization |   | Gross CarryingAmount |   | Accumulated Amortization |
|                             |   |                 |   |                     |   |   |   |   |   |   |   |   |
| Amortized intangible assets      |   | $                    | 2,012  |                     | $ | 127  |   | $ | − |   | $ | − |
| Amortized intangible liabilities |   | $                    | 2,056  |                     | $ | 115  |   | $ | − |   | $ | − |

|                                   |   | Successor                        |      | Predecessor                         |
|----------------------------------------|--------|----------------------------------|-----------|-------------------------------------|
|                                   |   | February 13 –June 30, 2010 |      | January 1 – February 12, 2010 |   | Six Months EndedJune 30, 2009 |
| Amortization of intangible assets      |   | $                                | 127  |                                | $ | − |   | $ | − |
| Amortization of intangible liabilities |   | $                                | 115  |                                | $ | − |   | $ | − |

----

Table of Contents

|              |   | Amortization ofintangible assets |   | Amortization ofintangible liabilities |
|-------------------|--------|----------------------------------|--------|---------------------------------------|
| Remainder of 2010 |   | $                                | 154    |                                  | $ | 151 |
| 2011              |   | $                                | 307    |                                  | $ | 293 |
| 2012              |   | $                                | 307    |                                  | $ | 282 |
| 2013              |   | $                                | 307    |                                  | $ | 252 |
| 2014              |   | $                                | 307    |                                  | $ | 179 |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Guarantees                       |   |                      |   |                   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|---------------------------|--------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | BNSF RailwayOwnership Percentage |   | PrincipalAmountGuaranteed |   | MaximumFuture Payments |   | MaximumRecourseAmounta |   | RemainingTerm(in years) |   | Capitalized Obligations |   |
| Kinder Morgan Energy Partners, L.P.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 0.5%                             |   | $                         | 190    |                   | $ | 190 |   | $ | – |   | Termination of Ownership |   | $ | 2 | b |
| Chevron Phillips Chemical Company, LP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 0.0%                             |   |                      | N/Ad   |                   |   | N/Ad |   |   | N/Ad |   | 7 |   | $ | 12 | c |
| All other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 0.0%                             |   | $                         | 3      |                   | $ | 3 |   | $ | 1 |   | Various |   | $ | – |   |
| 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 Sheet.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 Railway for BNSF Railway’s negligence or the negligence of the indemnified party. However, BNSF Railway could receive reimbursement from certain insurance policies if the liability exceeds a certain amount. |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|              |   | Three Months Ended June 30, |   |
|-------------------|--------|-----------------------------|--------|
|              |   | Successor                   |   | Predecessor |   |
|              |   | 2010                        |   | 2009 |   |
| Beginning balance |   | $                           | 648    |   |   | $ | 688 |   |
| Accruals          |   |                        | 9      |   |   |   | 26 |   |
| Payments          |   |                        | (31    | ) |   |   | (34 | ) |
| Ending balance    |   | $                           | 626    |   |   | $ | 680 |   |

|              |   | Successor                        |   | Predecessor                         |   |
|-------------------|--------|----------------------------------|--------|-------------------------------------|--------|
|              |   | February 13 –June 30, 2010 |   | January 1 – February 12, 2010 |   | Six Months EndedJune 30, 2009 |   |
| Beginning balance |   | $                                | 664    |                                |   | $ | 632 |   | $ | 693 |   |
| Accruals          |   |                             | 14     |                                |   |   | 10 |   |   | 54 |   |
| Payments          |   |                             | (52    | )                                   |   |   | (9 | ) |   | (67 | ) |
| Ending balance    |   | $                                | 626    |                                |   | $ | 633 |   | $ | 680 |   |

----

Table of Contents

----

Table of Contents

|              |   | Three Months Ended June 30, |   |
|-------------------|--------|-----------------------------|--------|
|              |   | Successor                   |   | Predecessor |   |
|              |   | 2010                        |   | 2009 |   |
| Beginning balance |   | $                           | 505    |   |   | $ | 550 |   |
| Accruals          |   |                        | 5      |   |   |   | (3 | ) |
| Payments          |   |                        | (17    | ) |   |   | (18 | ) |
| Ending balance    |   | $                           | 493    |   |   | $ | 529 |   |

|              |   | Successor                        |   | Predecessor                         |   |
|-------------------|--------|----------------------------------|--------|-------------------------------------|--------|
|              |   | February 13 –June 30, 2010 |   | January 1 – February 12, 2010 |   | Six Months EndedJune 30, 2009 |   |
| Beginning balance |   | $                                | 514    |                                |   | $ | 517 |   | $ | 546 |   |
| Accruals          |   |                             | 6      |                                |   |   | 6 |   |   | 28 |   |
| Payments          |   |                             | (27    | )                                   |   |   | (9 | ) |   | (45 | ) |
| Ending balance    |   | $                                | 493    |                                |   | $ | 514 |   | $ | 529 |   |

----

Table of Contents

|                           |   | Pension Benefits            |
|--------------------------------|--------|-----------------------------|
|                           |   | Three Months Ended June 30, |
|                           |   | Successor                   |   | Predecessor |
| Net Cost                       |   | 2010                        |   | 2009 |
| Service cost                   |   | $                           | 8 |   | $ | 7 |
| Interest cost                  |   |                        | 27 |   |   | 25 |
| Expected return on plan assets |   |                        | (27) |   |   | (26) |
| Amortization of net loss       |   |                        | – |   |   | 6 |
| Net cost recognized            |   | $                           | 8 |   | $ | 12 |

|                           |   | Pension Benefits                 |
|--------------------------------|--------|----------------------------------|
|                           |   | Successor                        |   | Predecessor |
| Net Cost                       |   | February 13 – June 30,2010 |   | January 1 – February 12, 2010 |   | Six Months Ended June 30, 2009 |
| Service cost                   |   | $                                | 12 |   | $ | 3 |   | $ | 14 |
| Interest cost                  |   |                             | 41 |   |   | 12 |   |   | 51 |
| Expected return on plan assets |   |                             | (40) |   |   | (14) |   |   | (53) |
| Amortization of net loss       |   |                             | – |   |   | 4 |   |   | 12 |
| Net cost recognized            |   | $                                | 13 |   | $ | 5 |   | $ | 24 |

----

Table of Contents

|                                 |   | Retiree Health andWelfare Benefits |
|--------------------------------------|--------|------------------------------------|
|                                 |   | Three Months Ended June 30,        |
|                                 |   | Successor                          |   | Predecessor |
| Net Cost                             |   | 2010                               |   | 2009 |
| Service cost                         |   | $                                  | 1 |   | $ | 1 |
| Interest cost                        |   |                               | 3 |   |   | 3 |
| Amortization of net loss             |   |                               | – |   |   | 1 |
| Amortization of prior service credit |   |                               | – |   |   | (2) |
| Net cost recognized                  |   | $                                  | 4 |   | $ | 3 |

|                                 |   | Retiree Health and Welfare Benefits |
|--------------------------------------|--------|-------------------------------------|
|                                 |   | Successor                           |   | Predecessor |
| Net Cost                             |   | February 13 – June 30,2010    |   | January 1 – February 12, 2010 |   | Six Months Ended June 30, 2009 |
| Service cost                         |   | $                                   | 1 |   | $ | – |   | $ | 1 |
| Interest cost                        |   |                                | 5 |   |   | 2 |   |   | 7 |
| Amortization of net loss             |   |                                | – |   |   | – |   |   | 1 |
| Amortization of prior service credit |   |                                | – |   |   | – |   |   | (3) |
| Net cost recognized                  |   | $                                   | 6 |   | $ | 2 |   | $ | 6 |

----

Table of Contents

|                                                                                                              |   | Three Months Ended June 30, |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|
|                                                                                                              |   | Successor                   |   | Predecessor |
|                                                                                                              |   | 2010                        |   | 2009 |
| Net income                                                                                                        | $      | 656                         | $ | 464 |
| Other comprehensive income:                                                                                       |   |                        |   |   |
|     Change in unrecognized prior service credit and actuarial losses, net of tax (see Note 8) |   | –                     |   | 3 |
| Change in fuel/interest hedge mark-to-market, net of tax (see Note 3)                                             |   | (40)                        |   | 155 |
| Change in other comprehensive income of equity method investees                                                   |   | –                     |   | – |
| Total comprehensive income                                                                                        | $      | 616                         | $ | 622 |

|                                                                                                              |   | Successor                        |   | Predecessor                        |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|------------------------------------|
|                                                                                                              |   | February 13 – June30, 2010 |   | January 1 –February 12, 2010 |   | Six Months Ended June 30, 2009 |
| Net income                                                                                                        | $      | 997                              | $      | 282                                | $ | 848 |
| Other comprehensive income:                                                                                       |   |                             |   |                               |   |   |
|     Change in unrecognized prior service credit and actuarial losses, net of tax (see Note 8) |   | –                          |   | 2                                  |   | 6 |
| Change in fuel/interest hedge mark-to-market, net of tax (see Note 3)                                             |   | (3)                              |   | (45)                               |   | 200 |
| Change in other comprehensive income of equity method investees                                                   |   | –                          |   | 2                                  |   | – |
| Total comprehensive income                                                                                        | $      | 994                              | $      | 241                                | $ | 1,054 |

----

Table of Contents

|                                                                            |   | Successor    |    | Predecessor      |   |
|---------------------------------------------------------------------------------|--------|--------------|---------|------------------|--------|
|                                                                            |   | June 30,2010 |    | December 31,2009 |   |
| Unrecognized prior service credit and actuarial losses, net of tax (see Note 8) |   | $            | – |             |   | $ | (500 | ) |
| Fuel/interest hedge mark-to-market, net of tax (see Note 3)                     |   |         | (3      | )                |   |   | 5 |   |
| Accumulated other comprehensive loss of equity method investees                 |   |         | – |             |   |   | (6 | ) |
| Total accumulated other comprehensive loss                                      |   | $            | (3      | )                |   | $ | (501 | ) |

----

Table of Contents

Item 2.    Management’s Narrative Analysis of Results of Operations.

|                     |     | Revenues(in millions)            |     | Cars / Units (in thousands)       |
|--------------------------|----------|----------------------------------|----------|-----------------------------------|
|                     |     | Successor                        |     | Predecessor                       |   | Successor |   | Predecessor |
|                     |     | February 13 –June 30, 2010 |     | January 1 –February 12,2010 |   | Six Months Ended June 30, 2009 |   | February 13 –June 30,2010 |   | January 1 –February 12,2010 |   | Six Months Ended June 30, 2009 |
| Consumer Products        | $   | 1,804                       | $   | 515                               | $   | 2,089 |   | 1,548  |   | 453 |   | 1,934 |
| Coal                     |     | 1,603                       |     | 442                               |   | 1,738 |   | 900  |   | 259 |   | 1,216 |
| Industrial Products      |     | 1,325                       |     | 352                               |   | 1,405 |   | 535  |   | 139 |   | 580 |
| Agricultural Products    |     | 1,253                       |     | 417                               |   | 1,297 |   | 387  |   | 126 |   | 439 |
| Total Freight Revenues   |     | 5,985                       |     | 1,726                             |   | 6,529 |   | 3,370  |   | 977 |   | 4,169 |
| Other Revenues           |     | 91                          |     | 42                                |   | 129 |   |   |   |   |   |   |
| Total Operating Revenues | $   | 6,076                       | $   | 1,768                             | $   | 6,658 |   |   |   |   |   |   |

|                   |     | Average Revenue Per Car / Unit  |
|------------------------|----------|---------------------------------|
|                   |     | Successor                       |   | Predecessor |
|                   |     | February 13 –June 30,2010 |   | January 1 –February 12,2010 |   | Six Months Ended June 30, 2009 |
| Consumer Products      | $   | 1,165                      | $   | 1,137 | $   | 1,080 |
| Coal                   |     | 1,781                      |   | 1,707 |   | 1,429 |
| Industrial Products    |     | 2,477                      |   | 2,532 |   | 2,422 |
| Agricultural Products  |     | 3,238                      |   | 3,310 |   | 2,954 |
| Total Freight Revenues | $   | 1,776                      | $   | 1,767 | $   | 1,566 |

----

Table of Contents

|                         |     | Successor                                           |    | Predecessor                       |
|------------------------------|----------|-----------------------------------------------------|---------|-----------------------------------|
|                         |     | February 13 –June 30, 2010               |    | January 1 –February 12,2010 |   | Six Months Ended June 30, 2009 |
|                         |     |                                                |    |                              |   |   |
| Total fuel expense a         | $   | 1,092                                               | $  | 329                               | $  | 1,123 |
| BNSF Railway fuel surcharges | $   |         707 | $  | 192                               | $  | 547 |

| §   | Sale of a line segment in the State of Washington was completed, resulting in a gain to materials and other expenses of $74 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| §   | Consumer Products revenues included improvements in international intermodal and automotive unit volumes, as well as improved yields. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| §   | Coal revenues were impacted by improved yields, partially offset by lower unit volumes due to customer stockpiles and soft economic conditions. Second quarter 2009 included a $22 million favorable coal rate decision, offset by the $96 million loss in excess of amounts previously accrued related to an unfavorable coal rate case decision during the first quarter of 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Industrial Products revenues included increased unit volumes due to increased demand in construction products. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| §   | Agricultural Products reflected higher unit volumes due to increased international grain shipments and improved fertilizer and ethanol loadings, as well as improved yields. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Increased fuel surcharges per unit, primarily due to increased fuel prices, impacted revenue in each of the business units. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| §   | Improved performance against targets related to incentive compensation and profit sharing, which cover all non-union and about one quarter of union employees, as well as merger-related stock-based compensation adjustments, higher health and welfare expenses and wage inflation all contributed to increased compensation and benefits expenses. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Higher fuel prices increased fuel expenses, partially offset by a higher loss from closed fuel derivatives in the first six months of 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| §   | New intangible asset amortization resulting from the application and amortization of acquisition method accounting increased depreciation and amortization expenses. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Lower personal injury and environmental costs decreased materials and other expenses. |
|--------------------|---------------------------------------------------------------------------------------|

| §   | There were no significant changes in the underlying trends for purchased services expenses or equipment rents expenses. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| §   | Interest expense included the impact of merger-related adjustments resulting from the application of acquisition method accounting, which decreased the expense.  In the first six months of 2009, interest expense included a $9 million loss related to an unfavorable coal rate case decision. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The effective tax rate for the period of February 13 – June 30, 2010, was 36.7 percent, compared with 38.2 percent for the six months ended June 30, 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

Item 4T.    Controls and Procedures.

----

Table of Contents

Item 6.    Exhibits.

----

Table of Contents

SIGNATURES

|   | BNSF Railway Company(Registrant) |
|--------|----------------------------------|
|   |                             |   |   |
|   | By:          |   | /s/    Thomas N. Hund          |
|   |                             |   | Thomas N. HundExecutive Vice President and Chief Financial Officer(On behalf of the Registrant andas principal financial officer) |

| Date:  August 6, 2010 |
|---------------------------------|

----

Table of Contents

Exhibit Index

|   |   |   |                                                                                                           |   | Incorporated by Reference(if applicable) |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|
|   |   |   | Exhibit Number and Description                                                                                 |   | Form                                     | File Date | File No. | Exhibit |
|   |   |   |                                                                                                           |   |                                     |   |   |   |
|   | 3.1    |   | Restated Certificate of Incorporation of BNSF Railway Company, dated January 17, 2005.                         |   | 10-Q                                     | 7/26/2005 | 001-06324 | 3.1 |
|   |   |   |                                                                                                           |   |                                     |   |   |   |
|   | 3.2    |   | By-Laws of BNSF Railway Company, as amended August 30, 2005.                                                   |   | 10-Q                                     | 10/25/2005 | 001-06324 | 3.1 |
|   |   |   |                                                                                                           |   |                                     |   |   |   |
|   | 12.1   |   | Computation of Ratio of Earnings to Fixed Charges.*                                                            |   |                                     |   |   |   |
|   |   |   |                                                                                                           |   |                                     |   |   |   |
|   | 31.1   |   | Principal Executive Officer’s Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |   |                                     |   |   |   |
|   |   |   |                                                                                                           |   |                                     |   |   |   |
|   | 31.2   |   | Principal Financial Officer’s Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |   |                                     |   |   |   |
|   |   |   |                                                                                                           |   |                                     |   |   |   |
|   | 32.1   |   | Certification Pursuant to 18 U.S.C. § 1350 (Section 906 of the Sarbanes-Oxley Act of 2002).*              |   |                                     |   |   |   |
|   |   |   |                                                                                                           |   |                                     |   |   |   |
|   |   |   |                                                                                                           |   |                                     |   |   |   |

----

----