SPOTLIGHT TOPIC UPDATE - Agricultural Products

Operating Expenses Operating expenses for the nine months ending September 30, 2016 decreased $1,172 million, or 11%, compared to nine months ending September 30, 2015. A significant portion of this decrease is due to the following: • Fuel expense decreased primarily due to lower average fuel prices and lower volumes. Compensation and benefits decreased due to lower headcount driven by lower volumes and productivity improvements, partially offset by inflation. Purchased services decreased due to lower volumes and cost reductions. Materials and other expense decreased primarily as a result of lower crew transportation, lodging and other travel costs, locomotive and freight car materials, and derailment-related costs. BNSF 24 24

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