EX-12 2 dex12.htm EXHIBIT 12 EXHIBIT 12

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,  
     2008     2007    2006    2005     2004  

Net earnings

    $    4,994     $  13,213    $  11,015    $    8,528     $    7,308  

Income tax expense

      1,978       6,594      5,505      4,159       3,569  

Minority interests in earnings

      602       354      258      104       59  

Equity in earnings of MidAmerican Energy Holdings Company

      —         —        —        (523 )     (237 )

Fixed charges*

      2,276       2,202      1,979      867       875  
                                      

Earnings available for fixed charges

    $    9,850     $  22,363    $  18,757    $  13,135     $  11,574  
                                      

Investment and derivative gains/losses, pretax, included in earnings available for fixed charges

    $ (7,461 )   $    5,509    $    2,635    $    5,408     $    3,471  
                                      

Fixed charges*

             

Interest on indebtedness (including amortization of debt discount and expense)

    $    1,963     $    1,910    $    1,724    $      723     $      721  

Rentals representing interest and other

      313       292      255      144       154  
                                      
   $    2,276     $    2,202    $    1,979    $      867     $      875  
                                      

Ratio of earnings to fixed charges*

      4.33x       10.16x      9.48x      15.15x       13.23x  
                                      

Ratio of earnings, excluding investment and derivative gains/losses, to fixed charges*

      7.61x       7.65x      8.15x      8.91x       9.26x  
                                      
            

 

*  Includes fixed charges of finance and financial products and utilities and energy businesses as follows:

 

 

     2008     2007    2006    2005     2004  

Finance and financial products

    $       661     $       608    $       571    $       598     $       602  

Utilities and energy

      1,272       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:

 

  

     2008     2007    2006    2005     2004  

Including investment and derivative gains/losses

      23.08x       62.28x      50.64x      46.61x       40.19x  

Excluding investment and derivative gains/losses

      44.83x       45.53x      42.84x      26.50x       27.48x