EX-12 2 a38469exv12.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)
                                         
    Year Ended December 31,  
    2007     2006     2005     2004     2003  
Net earnings
   $ 13,213     $ 11,015     $ 8,528     $ 7,308     $ 8,151  
Income tax expense
     6,594       5,505       4,159       3,569       3,805  
Minority interests in earnings
     354       258       104       59       64  
Equity in earnings of MidAmerican Energy Holdings Company
     —       —       (523 )     (237 )     (429 )
Fixed charges*
     2,202       1,979       867       875       614  
 
                              
 
                                        
Earnings available for fixed charges
   $ 22,363     $ 18,757     $ 13,135     $ 11,574     $ 12,205  
 
                              
 
                                        
Investment and derivative gains, pretax, included in Earnings available for fixed charges
   $ 5,509     $ 2,635     $ 5,408     $ 3,471     $ 4,083  
 
                              
 
                                        
Fixed charges*
                                        
Interest on indebtedness (including amortization of debt discount and expense)
   $ 1,910     $ 1,724     $ 723     $ 721     $ 472  
 
                                        
Rentals representing interest and other
     292       255       144       154       142  
 
                              
 
   $ 2,202     $ 1,979     $ 867     $ 875     $ 614  
 
                              
 
                                        
Ratio of earnings to fixed charges*
     10.16 x     9.48 x     15.15 x     13.23 x     19.88 x
 
                              
 
                                        
Ratio of earnings, excluding investment and derivative gains, to fixed charges*
     7.65 x     8.15 x     8.91 x     9.26 x     13.23 x
 
                              
 
*   Includes fixed charges of finance and financial products and utilities and energy businesses as follows:
                                         
    2007   2006   2005   2004   2003
Finance and financial products
   $ 608     $ 571     $ 598     $ 602     $ 337  
Utilities and energy
     1,265       1,070       —       —       —  
     Excluding fixed charges of finance and financial products and utilities and energy businesses the ratios of earnings to fixed charges were as follows:
                                         
    2007   2006   2005   2004   2003
Including investment and derivative gains
     62.28x       50.64x       46.61x       40.19x       42.84x  
Excluding investment and derivative gains
     45.53x       42.84x       26.50x       27.48x       28.10x