EXHIBIT 12
Berkshire Hathaway Inc.
Statement Regarding Calculation of Ratio of Consolidated Earnings to
Consolidated Fixed Charges
(Dollars in millions)
Nine
Months Ended Years Ended December 31,
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September 30,
2004 2003 2002 2001 2000 1999
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Net earnings $ 3,969 $ 8,151 $ 4,286 $ 795 $ 3,328 $1,557
Income tax expense 1,999 3,805 2,059 590 1,997 852
Minority interests in earnings 40 64 14 53 241 41
Equity in earnings of MidAmerican Energy Holdings Company (71) (429) (359) (134) (85) -
Fixed charges * 700 614 840 1,069 986 773
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Earnings available for fixed charges $ 6,637 $12,205 $ 6,840 $ 2,373 $ 6,467 $3,223
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Investment gains, pre-tax, included in
earnings available for fixed charges $ 1,151 $ 4,129 $ 918 $ 1,488 $ 4,499 $1,247
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Fixed charges *
Interest on indebtedness (including amortization
of debt discount and expense) $ 590 $ 472 $ 725 $ 968 $ 916 $ 715
Rentals representing interest 110 142 115 101 70 58
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$ 700 $ 614 $ 840 $ 1,069 $ 986 $ 773
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Ratio of earnings to fixed charges * 9.48x 19.88x 8.14x 2.22x 6.56x 4.17x
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Ratio of earnings, excluding investment
gains, to fixed charges * 7.84x 13.15x 7.05x 0.83x 2.00x 2.56x
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* Includes fixed charges of finance businesses. Fixed charges of finance
businesses were as follows:
Nine
Months Ended Years Ended December 31,
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September 30,
2004 2003 2002 2001 2000 1999
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$ 505 $ 337 $ 551 $ 775 $ 786 $ 586
Excluding fixed charges of finance businesses the ratios of earnings to fixed
charges were as follows:
Nine
Months Ended Years Ended December 31,
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September 30,
2004 2003 2002 2001 2000 1999
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Including investment gains 31.45x 42.84x 21.76x 5.44x 28.41x 14.10x
Excluding investment gains 25.54x 27.94x 18.58x 0.37x 5.91x 7.43x