Exhibit 12
BERKSHIRE HATHAWAY INC.
Statement Regarding Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)
Statement Regarding Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)
| Three Months Ended | Year Ended December 31, | ||||||||||||||||||||||
| March 31, 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
Net earnings |
$ | 2,595 | $ | 11,015 | $ | 8,528 | $ | 7,308 | $ | 8,151 | $ | 4,286 | |||||||||||
Income tax expense |
1,388 | 5,505 | 4,159 | 3,569 | 3,805 | 2,059 | |||||||||||||||||
Minority interests in earnings |
89 | 258 | 104 | 59 | 64 | 14 | |||||||||||||||||
Equity in earnings of MidAmerican Energy
Holdings Company |
| | (523 | ) | (237 | ) | (429 | ) | (359 | ) | |||||||||||||
Fixed charges* |
532 | 1,979 | 867 | 875 | 614 | 840 | |||||||||||||||||
Earnings available for fixed charges |
$ | 4,604 | $ | 18,757 | $ | 13,135 | $ | 11,574 | $ | 12,205 | $ | 6,840 | |||||||||||
Investment and derivative gains, pretax, included
in Earnings available for fixed charges |
$ | 586 | $ | 2,635 | $ | 5,408 | $ | 3,471 | $ | 4,083 | $ | 838 | |||||||||||
Fixed charges* |
|||||||||||||||||||||||
Interest on indebtedness (including amortization
of debt discount and expense) |
$ | 463 | $ | 1,724 | $ | 723 | $ | 721 | $ | 472 | $ | 725 | |||||||||||
Rentals representing interest and other |
69 | 255 | 144 | 154 | 142 | 115 | |||||||||||||||||
| $ | 532 | $ | 1,979 | $ | 867 | $ | 875 | $ | 614 | $ | 840 | ||||||||||||
Ratio of earnings to fixed charges* |
8.65x | 9.48x | 15.15x | 13.23x | 19.88x | 8.14x | |||||||||||||||||
Ratio of earnings, excluding investment and
derivative gains, to fixed charges* |
7.55x | 8.15x | 8.91x | 9.26x | 13.23x | 7.15x | |||||||||||||||||
| * | Includes fixed charges of finance and financial products and utilities and energy businesses as follows: |
| Three
Months Ended March 31, 2007 |
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
Finance and financial products |
$ | 153 | $ | 571 | $ | 598 | $ | 602 | $ | 337 | $ | 551 | |||||||||||
Utilities and energy |
298 | 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:
| Three
Months Ended March 31, 2007 |
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
Including investment and derivative gains |
51.27x | 50.64x | 46.61x | 40.19x | 42.84x | 21.76x | |||||||||||||||||
Excluding investment and derivative gains |
44.04x | 42.84x | 26.50x | 27.48x | 28.10x | 18.86x | |||||||||||||||||