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, 2003 2002 2001 2000 1999 1998
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Net earnings $ 5,765 $ 4,286 $ 795 $ 3,328 $1,557 $2,830
Income tax expense 2,649 2,060 590 1,997 852 1,457
Minority interests in earnings 53 14 53 241 41 27
Equity in earnings of MidAmerican Energy Holdings Company (330) (360) (134) (85) - -
Fixed charges * 444 837 1,069 986 773 163
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Earnings available for fixed charges $ 8,581 $ 6,837 $ 2,373 $ 6,467 $3,223 $4,477
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Realized investment gains, pre-tax, included in
earnings available for fixed charges $ 2,848 $ 918 $ 1,488 $ 4,499 $1,247 $2,584
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Fixed charges *
Interest on indebtedness (including amortization
of debt discount and expense) $ 354 $ 725 $ 968 $ 916 $ 715 $ 130
Rentals representing interest 90 112 101 70 58 33
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$ 444 $ 837 $ 1,069 $ 986 $ 773 $ 163
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Ratio of earnings to fixed charges * 19.33x 8.17x 2.22x 6.56x 4.17x 27.47x
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Ratio of earnings, excluding realized investment
gains, to fixed charges * 12.91x 7.07x 0.83x 2.00x 2.56x 11.61x
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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, 2003 2002 2001 2000 1999 1998
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$ 242 $ 536 $ 762 $ 774 $ 586 $ 21
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, 2003 2002 2001 2000 1999 1998
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Including realized investment gains 41.28x 20.93x 5.25x 26.85x 14.10x 31.38x
Excluding realized investment gains 27.18x 17.88x 0.40x 5.63x 7.43x 13.18x
Berkshire Hathaway Inc.
Calculation of Ratio of to Fixed Charges
(Dollars in millions)
1998 1999 2000 2001 2002 Q3 2003
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TOTAL
Net earnings 2,830 1,557 3,328 795 4,286 5,765
Income tax expense 1,457 852 1,997 590 2,060 2,649
Min int in earnings 27 41 241 53 14 53
Income from Mid-American (85) (134) (360) (330)
Fixed charges - Ins & Other 142 187 212 307 301 202
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Earn avail for fixed chgs 4,456 2,637 5,693 1,611 6,301 8,339
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RIG - ins & other 2,415 1,365 3,955 1,363 637 2,492
RIG - fin bus (rlzd + unrlzd) 169 (118) 544 125 281 356
RIG - total pretax 2,584 1,247 4,499 1,488 918 2,848
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Fixed charges - Ins & Other
Int on debt 109 134 144 209 194 116
Int on sav acct
Rent representing int 33 53 68 98 107 86
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142 187 212 307 301 202
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Ratios - Ins & Other
Earn/fixed charges 31.38 14.10 26.85 5.25 20.93 41.28
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Earn/fixed charges ex RIG 13.18 7.43 5.63 0.40 17.88 27.18
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Fixed charges Ins & Other 142 187 212 307 301 202
Fixed charges Fin Bus 21 586 774 762 536 242
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163 773 986 1,069 837 444
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Earn avail for fixed chgs 4,477 3,223 6,467 2,373 6,837 8,581
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Fixed charges - Fin Bus
Int on debt 21 581 772 759 531 238
Rent repr int 0 5 2 3 5 4
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Fixed charges Fin Bus 21 586 774 762 536 242
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Ratios - Ins & Other + Fin Bus
Earn/fixed charges 27.47 4.17 6.56 2.22 8.17 19.33
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Earn/fixed charges ex RIG 11.61 2.56 2.00 0.83 7.07 12.91
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FIXED CHARGES TOTAL
Int on debt 130 715 916 968 725 354
Int on sav acct
Rent representing int 33 58 70 101 112 90
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163 773 986 1,069 837 444
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Income from Mid-American 2000 2001 2002 Q3 2003
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for 2001 10K (105) (165) - - equity earnings + trust prfrd interest (no tax effect)
for 2002 10K (66) (115) (317) - equity earnings
for 2003 S-4 & 10K (85) (134) (360) (330) equity earnings + trust prfrd interest - income taxes -
min int (income taxes = 10.5% on equity earnings,
approx. 35% on trust pfrd interest)
Berkshire Hathaway Inc.
Calculation of Ratio of Earning
(Dollars in millions)
TOTAL
Net earnings
Income tax expense
Min int in earnings
Income from Mid-American
Fixed charges - Ins & Other
Earn avail for fixed chgs
RIG - ins & other
RIG - fin bus (rlzd + unrlzd)
RIG - total pretax
Fixed charges - Ins & Other
Int on debt
Int on sav acct
Rent representing int
Ratios - Ins & Other
Earn/fixed charges
Earn/fixed charges ex RIG
Fixed charges Ins & Other
Fixed charges Fin Bus
Earn avail for fixed chgs
Fixed charges - Fin Bus
Int on debt
Rent repr int
Fixed charges Fin Bus
Ratios - Ins & Other + Fin Bus
Earn/fixed charges
Earn/fixed charges ex RIG
FIXED CHARGES TOTAL
Int on debt
Int on sav acct
Rent representing int
Income from Mid-American
for 2001 10K
for 2002 10K
for 2003 S-4 & 10K
Berkshire Hathaway Inc.
Rentals
1998 1999 2000 2001 2002 Q3 2003 YTD
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OBH EX BEN 131,948 141,699 160,147 154,943 132,015 99,011
INS GROUP 3,266,410 3,020,412 3,591,371 4,564,549 5,281,853 3,961,390
PRECISION 329,029 737,362 737,520
SEE'S 16,375,243 16,445,237 16,944,172 19,284,986 19,918,573 14,938,930
BUFFALO 508,625 519,593 449,781 455,861 341,896
BLUE CHIP 0
CORT 0 22,308,000 26,432,389 31,566,000 23,674,500
NE FURN MART 121,535 138,775 313,888 309,008 271,214 203,411
SFZ EX SFFG 4,826,000 5,633,000 5,473,296 5,647,000 5,748,000 4,311,000
FECHHEIMER 2,384,984 2,378,118 2,171,079 1,974,798 1,647,546 1,235,660
GATEWAY 36,113 37,694 39,557
NO. STATES 0 55,868 50,773
BORSHEIMS 480,522 480,522 480,522 469,856 469,856 352,392
ARS/NEW AMER 0
BROWN 1,800,858 1,970,510 4,374,366 9,982,401 7,401,000 5,550,750
LOWELL & HHB RET 2,778,045 2,759,001
DEXTER 5,475,162 5,470,000 5,460,000
HELZBERGS 21,845,867 24,720,171 26,635,608 28,378,567 31,671,619 23,753,714
RC WILLEY 1,134,650 4,712,214 2,052,125 4,088,576 1,226,902 920,177
GEICO 23,523,818 26,801,914 38,423,654 47,663,137 52,127,664 39,095,748
Gen Re 42,429,274 45,000,000 39,900,000 43,000,000 32,250,000
FlightSafety 3,234,606 4,013,569 4,977,764 3,995,531 2,992,382 2,244,287
Star Furniture 2,016,442 6,376,633 7,094,546 7,132,068 2,719,819 2,039,864
Dairy Queen 6,461,000 6,126,000 6,014,000 6,032,000 6,058,000 4,543,500
Exec Jet 856,000 3,113,000 3,296,000 3,444,000 4,973,000 3,729,750
Jordans 110,605 1,535,000 1,772,000 2,305,000 1,728,750
Ben Bridge 5,594,863 8,170,561 10,632,098 7,974,074
Justin Industries 1,355,000 2,862,000 3,091,059 2,318,294
Benjamin Moore 449,000 14,470,000 14,180,000 10,635,000
Johns Manville 12,988,000 14,000,000 10,500,000
MiTek 2,368,000 4,320,000 3,240,000
Shaw 43,567,919 36,744,123 27,558,092
Albecca 8,376,000 6,853,091
Fruit 8,749,926 9,843,667
Garan 1,405,000 3,161,250
CTB Intl 185,000 832,500
Pampered Chef 995,012 4,477,554
McLane 6,145,379
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EX FIN GRP 97,586,857 158,191,171 204,532,251 296,102,070 322,644,522 258,513,629
MUTUAL
SFFG 290,000 176,000 1,704 2,000 2,000 1,500
BLN 37,889 39,886
XTRA 3,000,000 8,600,000 6,450,000
Clayton 893,333
Gen Re 15,570,726 5,000,000 5,100,000 5,000,000 3,750,000
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290,000 15,784,615 5,041,590 8,102,000 13,602,000 11,094,833
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TOTAL 97,876,857 173,975,786 209,573,841 304,204,070 336,246,522 269,608,462
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1/3 ASSUMED TO REPRESENT INTEREST
EX FIN BUS 32,528,952 52,730,390 68,177,417 98,700,690 107,548,174 86,171,210
FIN BUS 96,667 5,261,538 1,680,530 2,700,667 4,534,000 3,698,278
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TOTAL 32,625,619 57,991,929 69,857,947 101,401,357 112,082,174 89,869,487
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