Exhibit 12
BERKSHIRE HATHAWAY INC.
Statement Regarding Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)
Statement Regarding Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)
| Six Months Ended | Year Ended December 31, | ||||||||||||||||||||||
| June 30, 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
| Net earnings | $ | 5,713 | $ | 11,015 | $ | 8,528 | $ | 7,308 | $ | 8,151 | $ | 4,286 | |||||||||||
| Income tax expense | 3,005 | 5,505 | 4,159 | 3,569 | 3,805 | 2,059 | |||||||||||||||||
| Minority interests in earnings | 170 | 258 | 104 | 59 | 64 | 14 | |||||||||||||||||
| Equity in earnings of MidAmerican Energy Holdings Company | — | — | (523 | ) | (237 | ) | (429 | ) | (359 | ) | |||||||||||||
| Fixed charges* | 1,074 | 1,979 | 867 | 875 | 614 | 840 | |||||||||||||||||
| Earnings available for fixed charges | $ | 9,962 | $ | 18,757 | $ | 13,135 | $ | 11,574 | $ | 12,205 | $ | 6,840 | |||||||||||
| Investment and derivative gains, pretax, included in Earnings available for fixed charges | $ | 1,514 | $ | 2,635 | $ | 5,408 | $ | 3,471 | $ | 4,083 | $ | 838 | |||||||||||
| Fixed charges* | |||||||||||||||||||||||
| Interest on indebtedness (including amortization of debt discount and expense) | $ | 932 | $ | 1,724 | $ | 723 | $ | 721 | $ | 472 | $ | 725 | |||||||||||
| Rentals representing interest and other | 142 | 255 | 144 | 154 | 142 | 115 | |||||||||||||||||
| $ | 1,074 | $ | 1,979 | $ | 867 | $ | 875 | $ | 614 | $ | 840 | ||||||||||||
| Ratio of earnings to fixed charges* | 9.28x | 9.48x | 15.15x | 13.23x | 19.88x | 8.14x | |||||||||||||||||
| Ratio of earnings, excluding investment and derivative gains, to fixed charges* | 7.87x | 8.15x | 8.91x | 9.26x | 13.23x | 7.15x | |||||||||||||||||
| * | Includes fixed charges of finance and financial products and utilities and energy businesses as follows: |
| Six Months Ended June 30, 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
| Finance and financial products | $ | 310 | $ | 571 | $ | 598 | $ | 602 | $ | 337 | $ | 551 | |||||||||||
| Utilities and energy | 606 | 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:
| Six Months Ended June 30, 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
| Including investment and derivative gains | 57.25x | 50.64x | 46.61x | 40.19x | 42.84x | 21.76x | |||||||||||||||||
| Excluding investment and derivative gains | 47.67x | 42.84x | 26.50x | 27.48x | 28.10x | 18.86x | |||||||||||||||||