EX-12.1 3 dex121.htm STATEMENT REGARDING CALCULATION OF RATIO Statement Regarding Calculation of Ratio
 
EXHIBIT 12.1
 
BERKSHIRE HATHAWAY INC.
 
STATEMENT REGARDING CALCULATION OF RATIO OF CONSOLIDATED EARNINGS
TO CONSOLIDATED FIXED CHARGES
(Dollars in millions)
 
    
Nine Months Ended September 30, 2002
     
Years Ended December 31,
       
2001
     
2000
     
1999
   
1998
   
1997
Net earnings
   
$
3,102
 
   
$
795
 
   
$
3,328
 
   
$
1,557
   
$
2,830
   
$
1,901
Income tax expense
   
 
1,484
 
   
 
620
 
   
 
2,018
 
   
 
852
   
 
1,457
   
 
898
Minority interest in earnings
   
 
23
 
   
 
54
 
   
 
241
 
   
 
41
   
 
27
   
 
28
Equity in net earnings of MidAmerican Energy
   
 
(256
)
   
 
(115
)
   
 
(66
)
   
 
—  
   
 
—  
   
 
—  
Fixed charges*
   
 
624
 
   
 
1,069
 
   
 
986
 
   
 
773
   
 
163
   
 
161
    
  
  
  
  
  
Earnings available for fixed charges
   
$
4,977
 
   
$
2,423
 
   
$
6,507
 
   
$
3,223
   
$
4,477
   
$
2,988
    
  
  
  
  
  
Realized investment gain, pretax, included in Earnings available for fixed charges
   
$
199
 
   
$
1,363
 
   
$
3,955
 
   
$
1,365
   
$
2,415
   
$
1,106
    
  
  
  
  
  
Fixed charges*
                                                
Interest on indebtedness (including amortization) of debt discount and expense)
   
$
545
 
   
$
968
 
   
$
916
 
   
$
715
   
$
130
   
$
132
Rentals representing interest
   
 
79
 
   
 
101
 
   
 
70
 
   
 
58
   
 
33
   
 
29
    
  
  
  
  
  
    
$
624
 
   
$
1,069
 
   
$
986
 
   
$
773
   
$
163
   
$
161
    
  
  
  
  
  
Ratio of earnings to fixed charges*
   
 
7.98x
 
   
 
2.27x
 
   
 
6.60x
 
   
 
4.17x
   
 
27.47x
   
 
18.56x
    
  
  
  
  
  
Ratio of earnings, excluding realized investment gain, to fixed charges*
   
 
7.66x
 
   
 
0.99x
 
   
 
2.59x
 
   
 
2.40x
   
 
12.65x
   
 
11.69x
    
  
  
  
  
  
*   Includes fixed charges of finance businesses. Fixed charges of finance businesses were as follows:
 
    
Nine Months Ended September 30, 2002
     
Years Ended December 31,
       
2001
     
2000
     
1999
   
1998
   
1997
    
$
401
 
   
$
762
 
   
$
774
 
   
$
586
   
$
21
   
$
20
 
Excluding fixed charges of finance businesses the ratios of earnings to fixed charges were as follows:
    
Nine Months Ended September 30, 2002
     
Years Ended December 31,
       
2001
     
2000
     
1999
   
1998
   
1997
Including realized investment gain
   
 
20.52x
 
   
 
5.41x
 
   
 
27.04x
 
   
 
14.10x
   
 
31.38x
   
 
21.05x
Excluding realized investment gain
   
 
19.63x
 
   
 
0.97x
 
   
 
8.39x
 
   
 
6.80x
   
 
14.37x
   
 
13.21x