EXHIBIT 12 BURLINGTON NORTHERN SANTA FE CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN MILLIONS, EXCEPT RATIO AMOUNTS) (UNAUDITED) Year Ended December 31, ------------ 1996 1995 1994 ---- ---- ---- Earnings: Pre-tax income $1,440 $ 334 $ 695 Add: Interest and fixed charges, excluding capitalized interest 301 220 155 Portion of rent under long-term operating leases representative of an interest factor 179 129 98 Amortization of capitalized interest 3 1 - Less: Undistributed equity in earnings of investments accounted for under the equity method (5) (27) (4) ------- ------ ------ Total earnings available for fixed charges $1,918 $ 657 $ 944 ======= ====== ====== Fixed charges: Interest and fixed charges $ 314 $ 227 $ 157 Portion of rent under long-term operating leases representative of an interest factor 179 129 98 ------- ------ ------ Total fixed charges $ 493 $ 356 $ 255 ======= ====== ====== Ratio of earnings to fixed charges 3.89x 1.85x(1) 3.70x ======= ====== ====== (1) Earnings for the year ended December 31,1995, include merger, severance and asset charges of $735 million. Excluding these costs, the ratio would have been 3.91x