EX-12 2 h67781exv12.htm EX-12 exv12
EXHIBIT 12
 
WASTE MANAGEMENT, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Millions, Except Ratios)
(Unaudited)
 
                 
    Nine Months
 		 
    Ended
 		 
    September 30,  
    2009     2008  
 
Income before income taxes and losses in equity investments(a)
  $ 1,127     $ 1,450  
                 
Fixed charges deducted from income:
               
Interest expense
    316       341  
Implicit interest in rents
    28       28  
                 
      344       369  
                 
Earnings available for fixed charges(b)
  $ 1,471     $ 1,819  
                 
Interest expense
  $ 316     $ 341  
Capitalized interest
    13       13  
Implicit interest in rents
    28       28  
                 
Total fixed charges(b)
  $ 357     $ 382  
                 
Ratio of earnings to fixed charges(a)
    4.1 x     4.8 x
                 
 
 
(a) Our “Income before income taxes and losses in equity investments” for the nine months ended September 30, 2009 has been negatively affected by (i) a pre-tax, non-cash charge of $49 million related to the abandonment of SAP software as our revenue management system; and (ii) a pre-tax charge of $46 million for our January 2009 restructuring. The effect of these non-recurring charges on our “Income before income taxes and losses in equity investments” should be considered when comparing the “Ratio of earnings to fixed charges” for the periods presented.
 
(b) To the extent interest may be assessed by taxing authorities on any underpayment of income tax, such amounts are classified as a component of income tax expense in our Statements of Operations. For purposes of this disclosure, we have elected to exclude interest expense related to income tax matters from our measurements of “Earnings available for fixed charges” and “Total fixed charges” for all periods presented.