The US Surface Transportation Board has agreed to hold a hearing on March 22nd to review a filing by the Western Coal Traffic League challenging the inclusion of $8.1 billion in the cost basis related the $43 billion acquisition by Berkshire Hathaway Inc. (NYSE: BRKA, BRK-B) of the Burlington Northern Santa Fe (BNSF) railroad in 2010. According to the Board’s announcement:
The Western Coal Traffic League (WCTL), and other parties, argues that BNSF’s acquisition price produced an $8.1 billion write-up in the railroad’s net investment base for [Uniform Rail Costing System] URCS costing purposes, and decreased BNSF’s 2010 annual depreciation calculations by $128 million. WCTL suggests that the Board should, beginning with its 2010 findings, adjust BNSF’s URCS costs by removing the $8.1 billion write-up and correspondingly adjusting the railroad’s annual depreciation.
In the original filing, the Coal League noted that if Berkshire Hathaway is allowed to include this “write-up”, the company will be able to:
decrease the number of shippers that can bring rate cases before the Board and increase the maximum rates for those shippers that obtain maximum rate relief from the Board.
The Western Coal Traffic League’s original filing is here, and the US Surface Transportation Board’s announcement is here.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
