Reg. S-K
Item 601
Exhibit 12
BERKSHIRE HATHAWAY INC.
Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)
Year Ended December 31, | ||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
Net earnings | $ | 4,994 | $ | 13,213 | $ | 11,015 | $ | 8,528 | $ | 7,308 | ||||||||
Income tax expense | 1,978 | 6,594 | 5,505 | 4,159 | 3,569 | |||||||||||||
Minority interests in earnings | 602 | 354 | 258 | 104 | 59 | |||||||||||||
Equity in earnings of MidAmerican Energy Holdings Company | — | — | — | (523 | ) | (237 | ) | |||||||||||
Fixed charges* | 2,276 | 2,202 | 1,979 | 867 | 875 | |||||||||||||
Earnings available for fixed charges | $ | 9,850 | $ | 22,363 | $ | 18,757 | $ | 13,135 | $ | 11,574 | ||||||||
Investment and derivative gains/losses, pretax, included in earnings available for fixed charges | $ | (7,461 | ) | $ | 5,509 | $ | 2,635 | $ | 5,408 | $ | 3,471 | |||||||
Fixed charges* | ||||||||||||||||||
Interest on indebtedness (including amortization of debt discount and expense) | $ | 1,963 | $ | 1,910 | $ | 1,724 | $ | 723 | $ | 721 | ||||||||
Rentals representing interest and other | 313 | 292 | 255 | 144 | 154 | |||||||||||||
$ | 2,276 | $ | 2,202 | $ | 1,979 | $ | 867 | $ | 875 | |||||||||
Ratio of earnings to fixed charges* | 4.33x | 10.16x | 9.48x | 15.15x | 13.23x | |||||||||||||
Ratio of earnings, excluding investment and derivative gains/losses, to fixed charges* | 7.61x | 7.65x | 8.15x | 8.91x | 9.26x | |||||||||||||
* Includes fixed charges of finance and financial products and utilities and energy businesses as follows:
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2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
Finance and financial products | $ | 661 | $ | 608 | $ | 571 | $ | 598 | $ | 602 | ||||||||
Utilities and energy | 1,272 | 1,265 | 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:
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2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
Including investment and derivative gains/losses | 23.08x | 62.28x | 50.64x | 46.61x | 40.19x | |||||||||||||
Excluding investment and derivative gains/losses | 44.83x | 45.53x | 42.84x | 26.50x | 27.48x |