EX-12 2 a06623exv12.htm EXHIBIT 12 exv12
 

Reg. S-K
Item 601
Exhibit 12

BERKSHIRE HATHAWAY INC.
Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)

                                         
    Years Ended December 31,  
    2004     2003     2002     2001     2000  
Net earnings
   $ 7,308     $ 8,151     $ 4,286     $ 795     $ 3,328  
Income tax expense
     3,569       3,805       2,059       590       1,997  
Minority interest in earnings
     59       64       14       53       241  
Equity in earnings of MidAmerican Energy Holdings Company
     (237 )     (429 )     (359 )     (134 )     (85 )
Fixed charges*
     875       614       840       1,069       986  
 
                              
 
Earnings available for fixed charges
   $ 11,574     $ 12,205     $ 6,840     $ 2,373     $ 6,467  
 
                              
 
                                        
Realized investment gains, pretax, included in Earnings available for fixed charges
   $ 3,496     $ 4,129     $ 918     $ 1,488     $ 4,499  
 
                              
 
                                        
Fixed charges*
                                       
Interest on indebtedness (including amortization of debt discount and expense)
   $ 721     $ 472     $ 725     $ 968     $ 916  
 
Rentals representing interest
     154       142       115       101       70  
 
                              
 
   $ 875     $ 614     $ 840     $ 1,069     $ 986  
 
                              
 
                                        
Ratio of earnings to fixed charges*
     13.23 x      19.88 x      8.14 x      2.22 x      6.56 x 
 
                              
 
                                        
Ratio of earnings, excluding realized investment gains, to fixed charges*
     9.23 x      13.15 x      7.05 x      0.83 x      2.00 x 
 
                              

*   Includes fixed charges of finance businesses. Fixed charges of finance businesses were as follows:
                                         
    2004     2003     2002     2001     2000  
 
   $ 602     $ 337     $ 551     $ 775     $ 786  

     Excluding fixed charges of finance businesses the ratios of earnings to fixed charges were as follows:

                                         
    2004     2003     2002     2001     2000  
Including realized investment gains
     40.19 x     42.84 x     21.76 x     5.44 x     28.41 x
Excluding realized investment gains
     27.38 x     27.94 x     18.58 x     0.37 x     5.91 x