1
Reg S-K
Item 601
Exhibit 12
BERKSHIRE HATHAWAY INC.
Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)
Years Ended December 31,
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1999 1998 1997 1996 1995
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Net earnings .......................................... $ 1,557 $ 2,830 $ 1,901 $ 2,489 $ 795
Income tax expense .................................. 852 1,457 898 1,197 276
Minority interest in earnings ....................... 41 27 28 20 13
Equity in the net income of investees
accounted for under the equity method ............ -- -- -- -- (92)
Fixed charges* ...................................... 187 142 141 124 75
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Earnings available for fixed charges .................. $ 2,637 $ 4,456 $ 2,968 $ 3,830 $ 1,067
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Realized investment gain, pretax, included in
earnings available for fixed charges ................ $ 1,365 $ 2,415 $ 1,106 $ 2,484 $ 194
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Fixed charges*
Interest on indebtedness (including amortization
of debt discount and expense) .................... $ 134 $ 109 $ 112 $ 100 $ 59
Rentals representing interest ....................... 53 33 29 24 16
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$ 187 $ 142 $ 141 $ 124 $ 75
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Ratio of earnings to fixed charges* ................... 14.10x 31.38x 21.05x 30.89x 14.23x
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Ratio of earnings, excluding realized investment
gain, to fixed charges* ............................. 6.80x 14.37x 13.21x 10.85x 11.64x
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*Excludes fixed charges of finance businesses. Fixed charges of finance
businesses were as follows:
1999 1998 1997 1996 1995
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$ 586 $ 21 $ 20 $ 30 $ 29
Including fixed charges of finance businesses the ratios of earnings to fixed
charges were as follows:
1999 1998 1997 1996 1995
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Including realized investment gain .... 4.17x 27.47x 18.56x 25.06x 10.54x
Excluding realized investment gain .... 2.40x 12.65x 11.69x 8.94x 8.67x